Document:

exv4w1

EXHIBIT 4.1

SUBURBAN PROPANE PARTNERS, L.P.,

SUBURBAN ENERGY FINANCE CORP.,

as Issuers

and

THE BANK OF NEW YORK MELLON,

as Trustee

 

INDENTURE

Dated as of March 23, 2010

 

Providing for the Issuance of

Debt Securities in Series

 

 

SUBURBAN PROPANE PARTNERS, L.P.

SUBURBAN ENERGY FINANCE CORP.

Reconciliation and Tie between Trust Indenture Act of 1939

and Indenture Provisions(1)

	 	 	 	 	 
	Trust Indenture Act	 	Indenture
	Section	 	Section
	Section 310
	 	(a)(1)	 	6.09
	 
	 	(a)(2)	 	6.09
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(b)	 	6.08
	Section 311
	 	(a)	 	6.10
	 
	 	 	 	Not Applicable
	 
	 	(b)	 	Not Applicable
	 
	 	(b)(2)	 	Not Applicable
	Section 312
	 	(a)	 	7.01
	 
	 	(b)	 	7.02(a)
	 
	 	 	 	7.02(b)
	 
	 	(c)	 	7.02(c)
	Section 313
	 	(a)	 	7.03(a)
	 
	 	(b)	 	Not Applicable
	 
	 	(c)	 	7.03(c)
	 
	 	(d)	 	7.03(b)
	Section 314
	 	(a)	 	7.04
	 
	 	(b)	 	Not Applicable
	 
	 	(c)(1)	 	1.02
	 
	 	(c)(2)	 	1.02
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	1.02
	Section 315
	 	(a)	 	6.01(a)
	 
	 	(b)	 	6.02
	 
	 	(c)	 	6.01(b)
	 
	 	(d)	 	6.01(c)
	 
	 	(d)(1)	 	6.01(a)
	 
	 	(d)(2)	 	6.01(c)(2)
	 
	 	(d)(3)	 	6.01(c)(3)
	 
	 	(e)	 	5.11
	Section 316
	 	(a)	 	1.01
	 
	 	(a)(1)(A)	 	5.02
	 
	 	 	 	5.05
	 
	 	(a)(1)(B)	 	5.04
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(b)	 	5.07
	Section 317
	 	(a)(1)	 	5.08
	 
	 	(a)(2)	 	5.09
	 
	 	(b)	 	12.05
	Section 318
	 	(a)	 	1.07

 

			
	(1)	 	This reconciliation and tie shall not for any purpose, be deemed to be a part of the
Indenture.

 

 

			
	 	 	TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I

Definitions and Other Provisions of General Application

	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	SECTION 1.02 Compliance Certificates and Opinions
	 	 	13	 
	SECTION 1.03 Form of Documents Delivered to Trustee
	 	 	13	 
	SECTION 1.04 Acts of Holders
	 	 	14	 
	SECTION 1.05 Notices, Etc., to Trustee and the Issuers
	 	 	15	 
	SECTION 1.06 Notice to Holders; Waiver
	 	 	15	 
	SECTION 1.07 Conflict with Trust Indenture Act
	 	 	16	 
	SECTION 1.08 Effect of Headings and Table of Contents
	 	 	16	 
	SECTION 1.09 Successors and Assigns
	 	 	16	 
	SECTION 1.10 Separability Clause
	 	 	16	 
	SECTION 1.11 Benefits of Indenture
	 	 	16	 
	SECTION 1.12 Governing Law
	 	 	16	 
	SECTION 1.13 Legal Holidays
	 	 	17	 
	SECTION 1.14 Language of Notices, etc
	 	 	17	 
	SECTION 1.15 Changes in Exhibits
	 	 	17	 
	SECTION 1.16 Counterparts; Facsimile
	 	 	17	 
	SECTION 1.17 No Personal Liability of Limited Partners,
Officers, Employees and Unitholders
	 	 	17	 
	SECTION 1.18 Non-Recourse
	 	 	18	 
	SECTION 1.19 Waiver of Jury Trial
	 	 	18	 
	SECTION 1.20 Force Majeure
	 	 	18	 
	 
	 	 	 	 
	ARTICLE II

Issuance of Securities

	 
	 	 	 	 
	SECTION 2.01 Creation of Securities in Amount Unlimited
	 	 	18	 
	SECTION 2.02 Documents Required for Issuance of Each Series of Securities
	 	 	18	 
	 
	 	 	 	 
	ARTICLE III

The Securities

	 
	 	 	 	 
	SECTION 3.01 Form and Denomination
	 	 	21	 
	SECTION 3.02 Execution, Delivery, Dating and Authentication
	 	 	22	 
	SECTION 3.03 Temporary Securities
	 	 	23	 
	SECTION 3.04 Registration, Registration of Transfer and Exchange
	 	 	24	 
	SECTION 3.05 Mutilated, Destroyed, Lost and Stolen Securities
	 	 	25	 
	SECTION 3.06 Payment of Interest; Interest Rights Preserved
	 	 	26	 
	SECTION 3.07 Persons Deemed Owners
	 	 	27	 
	SECTION 3.08 Cancellation
	 	 	27	 
	SECTION 3.09 Computation of Interest
	 	 	27	 

 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 3.10 Securities in Global Form
	 	 	27	 
	SECTION 3.11 CUSIP Numbers
	 	 	28	 
	 
	 	 	 	 
	ARTICLE IV

Satisfaction and Discharge

	 
	 	 	 	 
	SECTION 4.01 Satisfaction and Discharge of
Indenture in Respect of any Series
of Securities
	 	 	28	 
	SECTION 4.02 Application of Trust Money
	 	 	29	 
	 
	 	 	 	 
	ARTICLE V

Defaults and Remedies

	 
	 	 	 	 
	SECTION 5.01 Events of Default
	 	 	30	 
	SECTION 5.02 Acceleration
	 	 	31	 
	SECTION 5.03 Other Remedies
	 	 	32	 
	SECTION 5.04 Waiver of Past Defaults
	 	 	32	 
	SECTION 5.05 Control by Majority
	 	 	33	 
	SECTION 5.06 Limitation on Suits
	 	 	33	 
	SECTION 5.07 Rights of Holders of Securities to Receive Payment
	 	 	33	 
	SECTION 5.08 Collection Suit by Trustee
	 	 	34	 
	SECTION 5.09 Trustee May File Proofs of Claim
	 	 	34	 
	SECTION 5.10 Priorities
	 	 	34	 
	SECTION 5.11 Undertaking for Costs
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI

The Trustee

	 
	 	 	 	 
	SECTION 6.01 Certain Duties and Responsibilities
	 	 	35	 
	SECTION 6.02 Notice of Defaults
	 	 	36	 
	SECTION 6.03 Certain Rights of Trustee
	 	 	36	 
	SECTION 6.04 Not Responsible for Recitals or Issuance of Securities
	 	 	38	 
	SECTION 6.05 May Hold Securities
	 	 	38	 
	SECTION 6.06 Money Held in Trust
	 	 	38	 
	SECTION 6.07 Compensation and Reimbursement
	 	 	38	 
	SECTION 6.08 Disqualification; Conflicting Interests
	 	 	39	 
	SECTION 6.09 Corporate Trustee Required; Eligibility
	 	 	39	 
	SECTION 6.10 Resignation and Removal; Appointment of Successor
	 	 	40	 
	SECTION 6.11 Acceptance of Appointment by Successor
	 	 	41	 
	SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	42	 
	SECTION 6.13 Appointment of Authenticating Agent
	 	 	43	 
	SECTION 6.14 Preferential Collection of Claims
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VII

Holders’ Lists and Reports by Trustee and the Issuers

	 
	 	 	 	 
	SECTION 7.01 Issuers to Furnish Trustee Names and Addresses of Holders
	 	 	44	 
	SECTION 7.02 Preservation of Information; Communications to Holders
	 	 	45	 

 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 7.03 Reports by Trustee
	 	 	46	 
	SECTION 7.04 Reports by Issuers
	 	 	46	 
	 
	 	 	 	 
	ARTICLE VIII

Successors

	 
	 	 	 	 
	SECTION 8.01 Merger, Consolidation or Sale of Assets
	 	 	47	 
	SECTION 8.02 Successor Person Substituted
	 	 	49	 
	 
	 	 	 	 
	ARTICLE IX

Supplemental Indentures

	 
	 	 	 	 
	SECTION 9.01 Supplemental Indentures without Consent of Holders
	 	 	49	 
	SECTION 9.02 Supplemental Indentures with Consent of Holders
	 	 	50	 
	SECTION 9.03 Execution of Supplemental Indentures
	 	 	51	 
	SECTION 9.04 Effect of Supplemental Indentures
	 	 	51	 
	SECTION 9.05 Conformity with Trust Indenture Act
	 	 	52	 
	SECTION 9.06 Reference in Securities to Supplemental Indentures
	 	 	52	 
	ARTICLE X

Covenants

	SECTION 10.01 Payment of Securities
	 	 	52	 
	SECTION 10.02 Maintenance of Office or Agency
	 	 	52	 
	SECTION 10.03 Reports
	 	 	53	 
	SECTION 10.04 Compliance Certificate
	 	 	54	 
	SECTION 10.05 Corporate Existence
	 	 	54	 
	SECTION 10.06 Existence of Corporate Co-Issuer
	 	 	55	 
	SECTION 10.07 Calculation of Original Issue Discount
	 	 	55	 
	 
	 	 	 	 
	ARTICLE XI

Redemption of Securities

	 
	 	 	 	 
	SECTION 11.01 Applicability of Article
	 	 	55	 
	SECTION 11.02 Election to Redeem; Notice to Trustee
	 	 	55	 
	SECTION 11.03 Selection by Trustee of Securities to be Redeemed
	 	 	55	 
	SECTION 11.04 Notice of Redemption
	 	 	56	 
	SECTION 11.05 Deposit of Redemption Price
	 	 	57	 
	SECTION 11.06 Securities Payable on Redemption Date
	 	 	57	 
	SECTION 11.07 Securities Redeemed in Part
	 	 	57	 
	SECTION 11.08 Optional Redemption
	 	 	58	 
	SECTION 11.09 Mandatory Redemption
	 	 	58	 
	 
	 	 	 	 
	ARTICLE XII

Legal Defeasance and Covenant Defeasance

	 
	 	 	 	 
	SECTION 12.01 Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	58	 
	SECTION 12.02 Legal Defeasance and Discharge
	 	 	58	 

 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 12.03 Covenant Defeasance
	 	 	59	 
	SECTION 12.04 Conditions to Legal or Covenant Defeasance
	 	 	59	 
	SECTION 12.05 Deposited Money and Government Securities to be Held in Trust;
Other Miscellaneous Provisions
	 	 	61	 
	SECTION 12.06 Repayment to Suburban Propane
	 	 	61	 
	SECTION 12.07 Reinstatement
	 	 	62	 

 

 

     INDENTURE dated as of March 23, 2010, among SUBURBAN PROPANE PARTNERS, L.P., a Delaware
limited partnership (“Suburban Propane”), SUBURBAN ENERGY FINANCE CORP., a Delaware
corporation (“Finance Corp.” and, together with Suburban Propane, the “Issuers”)
and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Trustee (herein called the
“Trustee”).

     Each of the Issuers has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in
this Indenture provided.

     All things necessary to make this Indenture a valid agreement of the Issuers, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows:

ARTICLE I

Definitions and Other Provisions of General Application

     SECTION 1.01 Definitions. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

     (a) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

     (b) all other terms used herein which are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

     (c) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted in
the United States of America at the date of such computation; and

     (d) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other subdivision. Certain
terms, used principally within an Article of this Indenture, may be defined in that Article.

     “Act”, when used with respect to any Holder, has the meaning specified in Section
1.04.

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Subsidiary of such specified Person, whether or not such

 

 

Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

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

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

     “Asset Acquisition” means the following:

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

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

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

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

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to
Section 6.13 to act on behalf of the Trustee to authenticate Securities of one or more series.

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

2

 

     “Board of Supervisors” means:

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

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

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

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

     “Board Resolution” means a copy of a resolution certified by an officer of Suburban
Propane on behalf of the Issuers to have been duly adopted by the Board of Supervisors of Suburban
Propane and to be in full force and effect on the date of such certification.

     “Business Day”, when used with respect to (i) New York, means a day that is not a
Saturday or a Sunday, or a day on which banks or trust companies in New York City are authorized or
obligated by law, regulation or executive order to be closed and, (ii) any other Place of Payment
or place of publication, means each day on which commercial banks and foreign exchange markets
settle payments in the Place of Payment or place of publication, or as specified for a series of
Securities pursuant to Section 2.02. Unless otherwise specified pursuant to Section 2.02, when
used with respect to Securities bearing interest at a rate or rates determined by reference to
London interbank offered rates for deposits in U.S. Dollars, “Business Day” shall exclude any day
on which commercial banks and foreign exchange markets do not settle payments in London.

     “Capital Stock” means:

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

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

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

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

3

 

     “Cash Equivalents” means:

     (1) United States dollars;

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

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

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

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

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

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

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

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

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

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

4

 

     “Commission” means the Securities and Exchange Commission.

     “Common Depositary” has the meaning specified in Section 3.03(c).

     “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be principally administered, which office at the
date hereof is 101 Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate
Trust Administration, or such other address as the Trustee may designate from time to time by
notice to the Holders and the Issuers, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from time to time by notice
to the Holders and the Issuers), except that with respect to the presentation of Securities for
payment or for registration of transfer and exchange, such term shall mean the office or the agency
of the Trustee designated for such purpose.

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

     “Defaulted Interest” has the meaning specified in Section 3.06(b).

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

     “Euroclear” means the operator of the Euroclear System.

     “Event of Default” has the meaning specified in Section 5.01.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Date” has the meaning specified in Section 3.03(c).

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

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

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

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

5

 

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

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

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

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

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

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

     (3) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates, commodity prices, weather or other risks
associated with the business or operations of such Person.

     “Holder” or “holder” means the Person in whose name at the time a particular
Security is registered in the Security Register.

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

     (1) in respect of borrowed money;

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

     (3) in respect of banker’s acceptances;

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

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

6

 

     (6) representing any Hedging Obligations,

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

     “Indenture” means this instrument as originally executed or as it may from time to
time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof and shall include the terms of particular series of Securities
established as contemplated by Section 2.02.

     “interest”, when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date”, when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.

     “Investments” means, with respect to any Person, all direct or indirect investments by
such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or
other obligations but excluding Guarantees permitted to be incurred pursuant to any applicable
supplemental indenture, advances or capital contributions (excluding commission, travel and similar
advances to officers and employees made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with
all items that are or would be classified as investments on a balance sheet prepared in accordance
with GAAP. If Suburban Propane or any Restricted Subsidiary of Suburban Propane sells or otherwise
disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of Suburban
Propane such that, after giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of Suburban Propane, Suburban Propane will be deemed to have made an
investment on the date of any such sale or disposition equal to the Fair Market Value of Suburban
Propane’s Investments in such Restricted Subsidiary that were not sold or disposed of in an amount
determined as provided in any applicable supplemental indenture. The acquisition by Suburban
Propane or any Restricted Subsidiary of Suburban Propane of a Person that holds an Investment in a
third Person will be deemed to be an Investment by Suburban Propane or such Restricted Subsidiary
in such third Person in an amount equal to the Fair Market Value of the Investments held by the
acquired Person in such third Person in an amount determined as provided in any applicable
supplemental indenture. Except as otherwise provided in the indenture, the amount of an Investment
will be determined at the time the Investment is made and without giving effect to subsequent
changes in value.

     “Issuers’ Request” or “Issuers’ Order” means a written request or order signed
in the name of the Issuers by one of the Officers of each of the Issuers and delivered to the
Trustee.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or

7

 

otherwise perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other agreement to sell or give
a security interest in and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

     “Maturity”, when used with respect to any Security, means the date on which the
principal of such Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither Suburban Propane nor any of its Restricted Subsidiaries (a)
provides credit support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or
otherwise, or (c) constitutes the lender;

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

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

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

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

     “Officers’ Certificate” means a certificate signed on behalf of the Issuers by two
Officers of Suburban Propane, one of whom must be the principal executive officer, the principal
financial officer, the treasurer or the principal accounting officer of Suburban Propane, and
delivered to the Trustee. Each such Officers’ Certificate shall contain the statements provided in
Section 1.02 if and to the extent required by the provisions of such Section.

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

8

 

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an
employee of Suburban Propane or any Subsidiary of Suburban Propane and who shall be reasonably
acceptable to the Trustee. Each Opinion of Counsel shall contain the statements provided in
Section 1.02 if and to the extent required by the provisions of such Section.

     “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 5.02.

     “Outstanding” or “outstanding”, when used with respect to Securities, means,
as of the date of determination, all Securities theretofore authenticated and delivered under this
Indenture, except:

     (i) Securities theretofore canceled by the Trustee or delivered or deemed delivered to
the Trustee for cancellation;

     (ii) Securities for whose payment or redemption money in the necessary amount and in
the required currency or currency unit has been theretofore deposited with the Trustee or
any Paying Agent (other than the Issuers) in trust or set aside and segregated in trust by
the Issuers (if the Issuers shall act as their own Paying Agent) for the Holders of such
Securities; provided, that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made; and

     (iii) Securities which have been paid pursuant to Section 3.05 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a
protected purchaser (as defined in section 8-303 of the New York Uniform Commercial Code as
in effect on the date hereof, and any successor thereto or amendment thereof) in whose hands
such Securities are valid obligations of the Issuers;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or whether a quorum is present at a meeting of
Holders of Outstanding Securities or the number of votes entitled to be cast by each Holder of a
Security in respect of such Security at any such meeting, (i) the principal amount of an Original
Issue Discount Security that shall be deemed to be Outstanding for such purposes shall be the
amount of the principal thereof that would be due and payable as of the date of such determination
upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, and (ii)
Securities owned by the Issuers or any other obligor upon the Securities or any Affiliate of the
Issuers or of such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer Trust Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such

9

 

Securities and that the pledgees are not the Issuers or any other obligor upon the Securities or
any Affiliate of the Issuers or of such other obligor.

     “Paying Agent” means the Trustee or any other Person authorized by the Issuers to pay
the principal of (and premium, if any) or interest, if any, on any Securities on behalf of the
Issuers.

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

     “Place of Payment”, when used with respect to the Securities of any series, means the
place or places where the principal of (and premium, if any) and interest, if any, on the
Securities of that series are payable as specified in accordance with Section 2.02.

     “Predecessor Security” of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 3.05 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

     “Redemption Date”, when used with respect to any Security to be redeemed, means the
date fixed for such redemption by or pursuant to this Indenture.

     “Redemption Price”, when used with respect to any Security to be redeemed, means the
price, in the currency or currency unit in which such Security is payable, at which it is to be
redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as contemplated by Section 2.02,
which date shall be, unless otherwise specified pursuant to Section 2.02, the fifteenth day
preceding such Interest Payment Date, whether or not such day shall be a Business Day.

     “Reporting Default” means a Default described in Section 5.01(c).

     “Responsible Trust Officer”, when used with respect to the Trustee, means any officer
within the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

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

     “S&P” means Standard & Poor’s Ratings Group.

10

 

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security Register” has the meaning specified in Section 3.04(a).

     “Security Registrar” means the Person appointed as the initial Security Registrar in
Section 3.04(a) or any Person appointed by the Issuers as a successor or replacement Security
Registrar.

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

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 3.06(b).

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

     “Subsidiary” means, with respect to any specified Person:

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

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

     “Subsidiary Guarantee” means the Guarantee by each Guarantor of Suburban Propane’s
obligations under this Indenture and on the Securities, executed pursuant to the provisions of this
Indenture.

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

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the applicable

11

 

provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who
is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any series shall mean the Trustee with respect to Securities
of that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended by the Trust
Indenture Reform Act of 1990, and as in force at the date as of which this instrument was executed,
except as provided in Section 9.05.

     “United States” means the United States of America (including the states and the
District of Columbia), its territories, its possessions and other areas subject to its
jurisdiction.

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

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

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

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

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

     “U.S. Government Obligations” means securities that are (i) direct obligations of the
United States of America for the payment of which its full faith and credit is pledged or
(ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either case under clause
(i) or (ii), are not callable or redeemable at the option of the issuer thereof, and will also
include a depository receipt issued by a bank or trust company as custodian with respect to any
such U.S. Government Obligation or a specific payment of interest on or principal of any such
U.S. Government Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from any amount received
by the custodian in respect of the U.S. Government Obligation or the specific payment of interest
on or principal of the U.S. Government Obligation evidenced by such depository receipt.

12

 

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

     “Wholly Owned Restricted Subsidiary” means the Operating Partnership or any Subsidiary
of Suburban Propane of which 100% of the outstanding Capital Stock is owned by Suburban Propane or
by one or more Wholly Owned Restricted Subsidiaries of Suburban Propane or by Suburban Propane and
one or more Wholly Owned Restricted Subsidiaries of Suburban Propane. For purposes of this
definition, any directors’ qualifying shares or investments by foreign nationals mandated by
applicable law shall be disregarded in determining the ownership of a Subsidiary.

     SECTION 1.02 Compliance Certificates and Opinions. (a) Upon any application or
request by the Issuers to the Trustee to take any action under any provision of this Indenture, the
Issuers shall furnish to the Trustee an Officers’ Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

     (b) Unless expressly otherwise specified with respect to any certificate or opinion provided
for in this Indenture, every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than annual certificates provided pursuant to
Section 10.04) shall include:

     (i) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (iii) a statement that, in the opinion of each such individual, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (iv) a statement as to whether or not, in the opinion of each such individual, such
condition or covenant has been satisfied.

     SECTION 1.03 Form of Documents Delivered to Trustee. (a) In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is
not necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

13

 

     (b) Any certificate or opinion of an officer of Suburban Propane on behalf of the Issuers may
be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to the matters upon
which his certificate or opinion is based are erroneous. Any such certificate or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of Suburban Propane on behalf of the Issuers stating
that the information with respect to such factual matters is in the possession of Suburban Propane,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

     (c) Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     SECTION 1.04 Acts of Holders. (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders
of Securities of any series may be embodied in and evidenced by (i) one or more instruments of
substantially similar tenor signed by such Holders in person or by proxies duly appointed in
writing, (ii) the record of such Holders voting in favor thereof, either in person or by proxies
duly appointed in writing, at any meeting of Holders of Securities of such series duly called and
held in accordance with the provisions of the applicable supplemental indenture in respect of a
series of Securities, or (iii) a combination of any such record and one or more instruments of
substantially similar tenor signed by such Holders in person or by proxies duly appointed in
writing. Except as herein otherwise expressly provided, such action shall become effective when
such record and/or instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Issuers. Such record or instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such proxy shall be sufficient for
any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and
the Issuers, if made in the manner provided in this Section. The record of any meeting of Holders
of Securities shall be proved in the manner provided in the applicable supplemental indenture in
respect of a series of Securities.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any reasonable manner which the Trustee deems sufficient. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall
also constitute sufficient proof of his authority.

     (c) The principal amount and serial numbers of Securities held by any Person and the date of
holding the same shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of a
Holder shall bind every future Holder of the same Security and the Holder of every Security issued
upon the registration of transfer thereof or in exchange therefor or in lieu thereof

14

 

in respect of anything done, omitted or suffered to be done by the Trustee or the Issuers in
reliance thereon, whether or not notation of such action is made upon such Security.

     (e) If the Issuers shall solicit from the Holders of Securities any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Issuers may, at their option,
by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Issuers shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act may be given before
or after such record date, but only the Holders of record at the close of business on such record
date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Securities shall be computed as of such record date; provided that no such
authorization, agreement or consent by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date.

     SECTION 1.05 Notices, Etc., to Trustee and the Issuers. Any request, demand,
authorization, direction, notice, consent, waiver or other Act of Holders or other document
provided or permitted by this Indenture to be made upon, given or furnished to, or filed with:

     (a) the Trustee by any Holder or by the Issuers shall be made, given, furnished or filed in
writing (which may be via facsimile) to or with the Trustee at its Corporate Trust Office and
unless otherwise herein expressly provided, any such document shall be deemed to be sufficiently
made, given, furnished or filed upon its receipt by a Responsible Trust Officer of the Trustee, or

     (b) Suburban Propane on behalf of the Issuers by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing
and delivered in person, mailed, first-class postage prepaid, or sent by overnight courier or,
until such time as Suburban Propane shall have notified the Trustee in writing that it shall no
longer accept delivery of notice by telecopy, given by telecopy to Suburban Propane addressed to it
at the address of its principal office specified in the first paragraph of this instrument or at
any other address previously furnished in writing to the Trustee by Suburban Propane, or at its
telecopy number from time to time furnished in writing to the Trustee expressly for purposes of
this Indenture, Attention: Legal Department.

     SECTION 1.06 Notice to Holders; Waiver. (a) Where this Indenture provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided or unless otherwise specified in such Securities) if in writing and delivered in person,
mailed, first-class postage prepaid or sent by overnight courier, to each Holder affected by such
event, at his address as it appears in the Security Register, within the time prescribed for the
giving of such notice.

     (b) In case by reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice to Holders of Securities in the manner

15

 

specified above, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.

     (c) In any case where notice to a Holder of Securities is given in any manner specified in
paragraph (a) above, such notice shall be conclusively presumed to have been duly given, whether or
not such Holder receives such notice. In any case where notice to Holders of Securities is given
in any manner specified in paragraph (a) above, neither the failure to deliver, mail or send such
notice, nor any defect in any notice so mailed or sent, to any particular Holder of a Security
shall affect the sufficiency of such notice with respect to other Holders of Securities given as
provided herein.

     (d) Where this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders of Securities shall be
filed with the Trustee, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.

     SECTION 1.07 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with the duties imposed by any of
Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of Section 318(c)
thereof, such imposed duties shall control.

     SECTION 1.08 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 1.09 Successors and Assigns.

     All covenants and agreements in this Indenture by the Issuers shall bind their respective
successors and assigns, whether so expressed or not.

     SECTION 1.10 Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     SECTION 1.11 Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     SECTION 1.12 Governing Law.

16

 

     THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE
EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     SECTION 1.13 Legal Holidays.

     Except as otherwise specified as contemplated by Section 2.02, in any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any
Place of Payment, then (notwithstanding any other provision of this Indenture or of such Security)
payment of interest or principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of Payment with the
same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, as the case may be; provided, that no interest shall accrue for the period from
and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, to
the next succeeding Business Day at such Place of Payment.

     SECTION 1.14 Language of Notices, etc.

     Any request, demand, authorization, direction, notice, consent or waiver required or permitted
under this Indenture shall be in the English language.

     SECTION 1.15 Changes in Exhibits.

     At any time and from time to time, the Issuers may substitute a new form, or add new forms, of
the Exhibits hereto. Such substitution shall be effective upon receipt by the Trustee of such new
form of Exhibit and a Board Resolution or Officers’ Certificate adopting such new form of Exhibit,
and thereafter all references in this Indenture to such Exhibit shall be deemed to refer to such
new form of Exhibit.

     SECTION 1.16 Counterparts; Facsimile.

     THIS INDENTURE MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS AND BY THE PARTIES HERETO IN
SEPARATE COUNTERPARTS, AND SIGNATURE PAGES MAY BE DELIVERED BY FACSIMILE OR ELECTRONIC
TRANSMISSION, EACH OF WHICH WHEN SO EXECUTED SHALL BE DEEMED TO BE AN ORIGINAL AND ALL OF WHICH
TAKEN TOGETHER SHALL CONSTITUTE ONE AND THE SAME AGREEMENT.

     SECTION 1.17 No Personal Liability of Limited Partners, Officers, Employees and
Unitholders.

     No past, present or future limited partner, officer, employee, incorporator, unitholder,
stockholder or Affiliate of the Issuers, as such, will have any liability for any obligations of
the Issuers under the Securities of any series, this Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of Securities of a
series by accepting a Security waives and releases all such liability. The waiver and release are
part of the

17

 

consideration for issuance of the Securities of such series. The waiver may not be effective
to waive liabilities under the federal securities laws.

     SECTION 1.18 Non-Recourse.

     The Issuers’ obligations under this Indenture are payable only out of their cash flow and
assets. The Issuers’ obligations under this Indenture are non-recourse to the limited partners of
Suburban Propane and are non-recourse to the Operating Partnership and its Subsidiaries except as
set forth in any supplemental indenture. The Trustee has, and each Holder of a Security of a
series, by accepting a Security of such series, is deemed to have, agreed in this Indenture that
the limited partners as well as the Operating Partnership and its Subsidiaries will not be liable
for any of the Issuers’ obligations under this Indenture.

     SECTION 1.19 Waiver of Jury Trial.

     EACH OF THE ISSUERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 1.20 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

ARTICLE II

Issuance of Securities

     SECTION 2.01 Creation of Securities in Amount Unlimited.

     An unlimited aggregate principal amount of Securities may be issued pursuant to this Article
II. The Securities may be authenticated and delivered, as authorized by the Board of Supervisors,
in an unlimited number of series.

     SECTION 2.02 Documents Required for Issuance of Each Series of Securities. At any
time and from time to time, Securities of each series created pursuant to the provisions of this
Article II may be executed by the Issuers and delivered to the Trustee and shall be authenticated
by the Trustee and delivered to, or upon the order of Suburban Propane on behalf of the Issuers
upon receipt by the Trustee of the following:

18

 

     (a) A Board Resolution or Board Resolutions authorizing the execution, authentication and
delivery of the Securities of the series, and specifying one or more of the following:

     (i) the title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities);

     (ii) any limit upon the aggregate principal amount of the Securities of the series
which may be authenticated and delivered under this Article II (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 3.03, 3.04, 3.05, 9.06 or 11.07 and
except for any Securities which, pursuant to Section 3.02, are deemed never to have been
authenticated and delivered hereunder);

     (iii) the date or dates on which the principal (and premium, if any) of any of the
Securities of the series are payable or the method of determination thereof;

     (iv) the rate or rates, or the method of determination thereof, at which any of the
Securities of the series shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date for the interest payable on any Securities on any Interest
Payment Date;

     (v) the place or places where the principal of (and premium, if any) and interest, if
any, on any of the Securities of the series shall be payable and the office or agency for
the Securities of the series maintained by the Issuers pursuant to Section 10.02;

     (vi) the period or periods within which, the price or prices at which and the terms and
conditions upon which any of the Securities of the series may be redeemed, in whole or in
part, at the option of Suburban Propane on behalf of the Issuers;

     (vii) the terms of any sinking fund and the obligation, if any, of the Issuers to
redeem or purchase Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within which, the
price or prices at which and the terms and conditions upon which Securities of the series
shall be redeemed or purchased, in whole or in part;

     (viii) the terms of the obligation of the Issuers, if any, to permit the conversion of
the Securities of the series into stock or other securities of the Issuers or of any other
corporation;

     (ix) the terms, if any, for the attachment to Securities of the series of warrants,
options or other rights to purchase or sell stock or other securities of the Issuers;

     (x) if other than denominations of $2,000 and any integral multiples of $1,000 in
excess thereof, the denominations in which the Securities of the series shall be issuable;

19

 

     (xi) if other than the principal amount thereof, the portion of the principal amount of
any of the Securities of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 5.02;

     (xii) the application of any such means of satisfaction and discharge as may be
specified for the Securities for a series;

     (xiii) any deletions or modifications of or additions to the Events of Default set
forth in Section 5.01 or covenants of the Issuers set forth in Article XII or X pertaining
to the Securities of the series;

     (xiv) the forms of the Securities of the series;

     (xv) whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in definitive global
form and, if so, whether beneficial owners of interests in any such definitive global
Security may exchange such interests for Securities of such series and of like tenor of any
authorized form and denomination and the circumstances under which and the place or places
where any such exchanges may occur, if other than in the manner provided in Section 3.04;

     (xvi) if the Securities of the series are to be issued upon the exercise of warrants,
the time, manner and place for such Securities to be authenticated and delivered;

     (xvii) whether and under what circumstances and with what procedures and documentation
the Issuers will pay additional amounts on any of the Securities of the series to any Holder
who is not a U.S. Person (including a definition of such term), in respect of any tax
assessment or governmental charge withheld or deducted and, if so, whether the Issuers will
have the option to redeem such Securities rather than pay additional amounts (and the terms
of any such option);

     (xviii) the Person to whom any interest on any Security of the series shall be payable,
if other than the Person in whose name that Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such interest, and the
extent to which, or the manner in which, any interest payable on a temporary global Security
on an Interest Payment Date will be paid if other than in the manner provided in Section
3.03; and

     (xix) any other terms of any of the Securities of the series (which terms shall not be
inconsistent with the provisions of this Indenture).

If any of the terms of the series are established by action taken pursuant to a Board Resolution or
Board Resolutions, an Officers’ Certificate certifying as to such action also shall be delivered to
the Trustee.

     (b) In case the Securities of the series to be authenticated and delivered are to be created
pursuant to one or more supplemental indentures, such supplemental indenture or

20

 

indentures, accompanied by a Board Resolution or Board Resolutions authorizing such
supplemental indenture or indentures and designating the new series to be created and prescribing
pursuant to paragraph (a) above, consistent with the applicable provisions of this Indenture, the
terms and provisions relating to the Securities of the series.

     (c) Either (i) a certificate or other official document evidencing the due authorization,
approval or consent of any governmental body or bodies, at the time having jurisdiction in the
premises, together with an Opinion of Counsel that the Trustee is entitled to rely thereon and that
the authorization, approval or consent of no other governmental body is required, or (ii) an
Opinion of Counsel that no authorization, approval or consent of any governmental body is required.

     (d) An Opinion of Counsel which shall state that: (i) the form of such Securities has been
established by a supplemental indenture or by or pursuant to a resolution of the Board of Directors
in accordance with Sections 2.01 and 2.02 and in conformity with the provisions of this Indenture;
(ii) the terms of such Securities have been established in accordance with Section 2.01 and in
conformity with the other provisions of this Indenture; and (iii) such Securities, when
authenticated and delivered by the Trustee and issued by the Issuers in the manner and subject to
any conditions specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Issuers, enforceable against the Issuers in accordance with their terms, subject
to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other
laws of general applicability relating to or affecting the enforcement of creditors’ rights
generally from time to time in effect, the enforceability of the Issuers’ obligations also being
subject to general equity principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law.

     (e) An Officers’ Certificate stating that the Issuers are not in default under this Indenture
and that the issuance of the Securities of the series will not result in any breach of any of the
terms, conditions or provisions of, or constitute a default under, the Issuers’ containing
documents or any indenture, mortgage, deed of trust or other agreement or instrument to which any
Issuer is a party or by which it is bound, or any order of any court or administrative agency
entered in any proceeding to which any Issuer is a party or by which it may be bound or to which it
may be subject; and that all conditions precedent provided in this Indenture relating to the
authentication and delivery of the Securities of the series have been complied with.

     (f) Such other documents as the Trustee may reasonably require.

ARTICLE III

The Securities

     SECTION 3.01 Form and Denomination. All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise be provided in or
pursuant to the Board Resolution referred to in Section 2.02 and (subject to Section 3.02) set
forth in the Officers’ Certificate referred to in Section 2.02 or in any indenture supplemental
hereto.

21

 

     The Securities of each series shall be issuable in such denominations as shall be specified as
contemplated by Section 2.02. In the absence of any such provisions with respect to the Securities
of any series, the Securities of such series denominated in Dollars shall be issuable in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. Securities of each
series shall be numbered, lettered or otherwise distinguished in such manner or in accordance with
such plan as the officers of the Issuers executing the same may determine with the approval of the
Trustee. Each Security shall bear the appropriate legends, if any, as required by U.S. Federal tax
law and regulations.

     SECTION 3.02 Execution, Delivery, Dating and Authentication. (a) The Securities shall
be executed on behalf of the Issuers by a manual or facsimile signature of at least one Officer of
each of the Issuers. In case any of the above referenced Officers of the Issuers who shall have
signed any of the Securities shall cease to be such officer before the Securities so signed shall
have been authenticated and delivered by the Trustee or disposed of by the Issuers, such Securities
nevertheless may be authenticated and delivered or disposed of as though the person who signed such
Securities had not ceased to be such Officer; and any Securities may be signed on behalf of the
Issuers by such persons as, at the actual date of the execution of such Security, shall be such
Officers of the Issuers, although at the date of the execution of this Indenture any such person
was not such Officer.

     (b) At any time and from time to time, the Issuers may deliver Securities of any series
executed by the Issuers to the Trustee for authentication, together with an Issuers’ Order for the
authentication and delivery of such Securities, and the Trustee in accordance with the Issuers’
Order shall authenticate and make available for delivery such Securities.

     (c) The Trustee shall not be required to authenticate Securities of any series if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee, or if the Trustee determines that such action may not lawfully be taken.

     (d) Each Security shall be dated the date of its authentication.

     (e) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for below executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if
any Security shall have been duly authenticated and delivered hereunder but never issued and sold
by the Issuers, and the Issuers shall deliver such Security to the Trustee for cancellation as
provided in Section 3.08 together with a written statement (which need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel) stating that such Security has never been
issued and sold by the Issuers, for all purposes of this Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

22

 

     (f) The Trustee’s certificate of authentication shall be in substantially the following form:

Dated:

     This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     SECTION 3.03 Temporary Securities. (a) Pending the preparation of definitive
Securities of any series, the Issuers may execute, and upon Issuers’ Order the Trustee shall
authenticate and make available for delivery, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of
the tenor of the definitive Securities in lieu of which they are issued, in registered form or, if
authorized, in bearer form, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine (but which do not affect
the rights, duties or immunities of the Trustee), as evidenced conclusively by their execution of
such Securities. Such temporary Securities may be in global form.

     (b) Except in the case of temporary Securities in global form (which shall be exchanged in
accordance with the provisions of the following paragraphs), if temporary Securities of any series
are issued, the Issuers will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of such series upon
surrender of the temporary Securities of such series at the office or agency of the Issuers
maintained pursuant to Section 10.02 in a Place of Payment for such series for the purpose of
exchanges of Securities of such series, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series, the Issuers shall execute and
the Trustee shall authenticate and make available for delivery in exchange therefor a like
aggregate principal amount of definitive Securities of the same series and of like tenor or
authorized denominations.

     (c) Without unnecessary delay but in any event not later than the date specified in, or
determined pursuant to the terms of, any such temporary global Security (the “Exchange
Date”), the Issuers shall deliver to the Trustee definitive Securities, in aggregate principal
amount equal to the principal amount of such temporary global Security, executed by the Issuers.
On or after the Exchange Date such temporary global Security shall be surrendered by the common
depositary for the benefit of Euroclear and Clearstream, Luxembourg (the “Common
Depositary”) to the Trustee, as the Issuers’ agent for such purpose, to be exchanged, in whole
or from time to time in part, for definitive Securities without charge and the Trustee shall
authenticate and make available for delivery, in exchange for each portion of such temporary

23

 

global Security, an equal aggregate principal amount of definitive Securities of the same
series of authorized denominations and of like tenor as the portion of such temporary global
Security to be exchanged. The definitive Securities to be delivered in exchange for any such
temporary global Security shall be in bearer form, registered form, definitive global form or any
combination thereof, as specified as contemplated by Section 2.02, and, if any combination thereof
is so specified, as requested by the beneficial owner thereof.

     SECTION 3.04 Registration, Registration of Transfer and Exchange. (a) The Issuers
shall cause to be kept at an office or agency to be maintained by the Issuers in accordance with
Section 10.02 a register (being the combined register of the Security Registrar and all additional
transfer agents designated pursuant to Section 10.02 for the purpose of registration of transfer of
Securities and sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Issuers shall provide for the
registration of Securities and the registration of transfers of Securities. The Bank of New York
Mellon is hereby appointed the initial Security Registrar, with the Security Register initially to
be kept at 101 Barclay Street, Floor 8 West, New York, New York 10286. At all reasonable times
each register maintained by the Security Registrar and any additional transfer agents shall be open
for inspection by the Trustee.

     (b) Upon surrender for registration of transfer of any Security of any series at the office or
agency of the Issuers maintained pursuant to Section 10.02 for such purpose in a Place of Payment
for such series, the Issuers shall execute, and the Trustee shall authenticate and make available
for delivery, in the name of the designated transferee or transferees, one or more new Securities
of the same series of any authorized denominations and of a like aggregate principal amount and
tenor.

     (c) At the option of the Holder, Securities of any series may be exchanged for other
Securities of the same series of any authorized denominations and of a like aggregate principal
amount and tenor, upon surrender of the Securities to be exchanged at any such office or agency.
Whenever any Securities are so surrendered for exchange the Issuers shall execute, and the Trustee
shall authenticate and make available for delivery, the Securities which the Holder making the
exchange is entitled to receive.

     (d) All Securities issued upon any registration of transfer or exchange of Securities shall be
the valid obligations of the Issuers, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     (e) Every Security presented or surrendered for registration of transfer or for exchange shall
(if so required by the Issuers or the Trustee or any transfer agent) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the Issuers and the
Security Registrar or any transfer agent duly executed, by the Holder thereof or his attorney duly
authorized in writing.

     (f) No service charge shall be made for any registration of transfer or exchange of
Securities, but the Issuers may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or

24

 

exchange of Securities, other than exchanges pursuant to Section 3.03, 9.06 or 11.07 not
involving any transfer.

     (g) The Issuers shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 Business Days
before any selection of Securities of that series to be redeemed and ending at the close of
business on the day of the mailing of the relevant notice of redemption, or (ii) to register the
transfer of or exchange any Security so selected for redemption, in whole or in part, except the
unredeemed portion of any Security being redeemed in part.

     (h) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Security (including any transfers between or
among beneficial owners of interests in any global Security) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

     SECTION 3.05 Mutilated, Destroyed, Lost and Stolen Securities. (a) If any mutilated
Security is surrendered to the Trustee, the Issuers shall execute and the Trustee shall
authenticate and make available for delivery in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

     (b) If there shall be delivered to the Issuers and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them and any agent of either of them harmless, then, in
the absence of notice to the Issuers or the Trustee that such Security has been acquired by a
protected purchaser, the Issuers shall execute and the Trustee shall authenticate and make
available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of
the same series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

     (c) In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Issuers in its discretion may, instead of issuing a new Security, pay
such Security.

     (d) Upon the issuance of any new Security under this Section, the Issuers may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     (e) Every new Security of any series issued pursuant to this Section in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Issuers, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued hereunder.

25

 

     (f) The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated. destroyed, lost
or stolen Securities.

     SECTION 3.06 Payment of Interest; Interest Rights Preserved. (a) Unless otherwise
provided as contemplated by Section 2.02 with respect to any series of Securities, interest on any
Security which is payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest.

     (b) Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Issuers, at its election in each
case, as provided in clause (i) or (ii) below:

     (i) The Issuers may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Issuers shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Issuers shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Issuers of such Special Record Date and, in the name and at the
expense of the Issuers, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities
of such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following clause (ii).

     (ii) The Issuers may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Issuers to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

26

 

     Subject to the foregoing provisions of this Section and Section 3.04, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

     SECTION 3.07 Persons Deemed Owners. Prior to due presentment of a Security for
registration of transfer, the Issuers, the Trustee and any agent of the Issuers or the Trustee may
treat the Person in whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of principal of (and premium, if any) and (subject to Sections 3.04,
3.06 and 3.10 and unless otherwise specified as contemplated by Section 2.02) interest on such
Security and for all other purposes whatsoever, whether or not such Security is overdue, and
neither the Issuers, the Trustee nor any agent of the Issuers or the Trustee shall be affected by
notice to the contrary.

     SECTION 3.08 Cancellation. All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee. All Securities so
delivered shall be promptly canceled by the Trustee. The Issuers may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered hereunder which the
Issuers may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other
Person for delivery to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Issuers have not issued and sold, and all Securities so delivered to the
Trustee shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu of
or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in a
manner selected by the Trustee unless otherwise directed by an Issuers’ Order; provided,
however, that the Trustee may, but shall not be required to, destroy such canceled
Securities.

     SECTION 3.09 Computation of Interest. Except as otherwise specified as contemplated
by Section 2.02 for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

     SECTION 3.10 Securities in Global Form. (a) If Securities of a series are issuable in
global form, as specified as contemplated by Section 2.02, then, notwithstanding clause (a)(viii)
of Section 2.02 and the provisions of Section 3.01, such Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may provide that it shall
represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities represented thereby may from time to time be
reduced or increased to reflect exchanges. Any endorsement of a Security in global form to reflect
the amount, or any increase or decrease in the amount, of Outstanding Securities represented
thereby shall be made by the Trustee in such manner and upon instructions given by such Person or
Persons as shall be specified therein or in the Issuers’ Order to be delivered to the Trustee
pursuant to Section 3.02 or Section 3.03. Subject to the provisions of Section 3.02 and, if
applicable, Section 3.03, the Trustee shall deliver and redeliver any Security in definitive global
bearer form in the manner and upon written instructions given by the Person or Persons specified
therein or in the applicable Issuers’ Order. If Issuers’ Order pursuant to Section 3.02 or

27

 

3.03 has been, or simultaneously is, delivered, any instructions by the Issuers with respect
to endorsement or delivery or redelivery of a Security in global form shall be in writing but need
not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel.

     (b) The provisions of the last sentence of Section 3.02(e) shall apply to any Security
represented by a Security in global form if such Security was never issued and sold by the Issuers
and the Issuers deliver to the Trustee the Security in global form together with written
instructions (which need not comply with Section 1.02 and need not be accompanied by an Opinion of
Counsel) with regard to the reduction in the principal amount of Securities represented thereby,
together with the written statement contemplated by the last sentence of Section 3.02(e).

     (c) Notwithstanding the provisions of Section 3.06, unless otherwise specified as contemplated
by Section 2.02, payment of principal of and any premium and any interest on any Security in
definitive global form shall be made to the Person or Persons specified therein.

     (d) Notwithstanding the provisions of Section 3.07 and except as provided in the preceding
paragraph, the Issuers, and any agent of the Issuers may, and the Trustee and any agent of the
Trustee, at the direction of the Issuers, may treat a Person as the Holder of such principal amount
of Outstanding Securities represented by a definitive global Security as shall be specified in a
written statement of the Holder of such definitive global Security or, in the case of a definitive
global Security in bearer form, of Euroclear or Clearstream, Luxembourg which is produced to the
Trustee by such Person; provided, however, that none of the Issuers, the Trustee,
the Security Registrar or any Paying Agent shall have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial ownership interests in
a Security in global form or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

     SECTION 3.11 CUSIP Numbers.

     The Issuers in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or omission of such
numbers. The Issuers will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers.

ARTICLE IV

Satisfaction and Discharge

     SECTION 4.01 Satisfaction and Discharge of Indenture in Respect of any Series of
Securities. This Indenture shall upon Issuers’ Request cease to be of further effect with
respect to a series of Securities (except as to any surviving rights of (as applicable)
registration of transfer or exchange of Securities of such series herein expressly provided for),
and the Trustee,

28

 

at the request and expense of the Issuers, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to such series, when:

     (a) Either:

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

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

     (b) no Default or Event of Default has occurred and is continuing on the date of the deposit
(other than a Default or Event of Default resulting from the borrowing of funds to be applied to
such deposit) and the deposit will not result in a breach or violation of, or constitute a default
under, any other instrument to which the Issuers are a party or by which the Issuers are bound;

     (c) the Issuers have paid or caused to be paid all sums payable by them under this Indenture;

     (d) the Issuers have delivered irrevocable instructions to the Trustee under this Indenture to
apply the deposited money toward the payment of the notes at maturity or the redemption date, as
the case may be; and

     (e) the Issuers have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of such series of Securities under this Indenture have been complied
with.

     Notwithstanding the satisfaction and discharge of this Indenture with respect to a series, the
obligations of the Issuers to the Trustee under Section 6.07, the obligations of the Trustee to any
Authenticating Agent under Section 6.13 and, if money shall have been deposited with the Trustee
pursuant to subclause (ii) of clause (a) of this Section, the obligations of the Trustee under
Section 4.02 and Section 12.05 shall survive.

     SECTION 4.02 Application of Trust Money.

29

 

     Subject to the provisions of Section 12.05 hereof, all money deposited with the Trustee
pursuant to Section 4.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including Suburban Propane acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for
whose payment such money has been deposited with the Trustee; but such money need not be segregated
from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 4.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuers’ and any Guarantor’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
5.01 hereof; provided that if Suburban Propane has made any payment of principal of,
premium, if any, or interest on any Securities because of the reinstatement of its obligations,
Suburban Propane shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or Government Securities held by the Trustee or Paying Agent.

     Subject to the provisions of Section 12.06, all money deposited with the Trustee pursuant to
Section 4.01 shall be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Issuers acting as their own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and interest, if any, for whose
payment such money has been deposited with the Trustee.

ARTICLE V

Defaults and Remedies

     SECTION 5.01 Events of Default.

     Each of the following is an “Event of Default” with respect to any series of Securities:

     (a) default for 30 days in the payment when due of interest on the Securities;

     (b) default in payment when due of the principal of, or premium, if any, on the Securities;

     (c) failure by Suburban Propane for 90 days after notice to comply with the provisions under
Section 10.03 hereof;

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

30

 

     (e) the failure to pay at final maturity (giving effect to any applicable grace periods and
any extensions thereof) the stated principal amount of any Indebtedness of Suburban Propane or any
Restricted Subsidiary of Suburban Propane, or the acceleration of the final stated maturity of any
such Indebtedness if the aggregate principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness in default for failure to pay principal at final
stated maturity or which has been accelerated, aggregates $15.0 million or more at any time;

     (f) a final judgment or judgments, which is or are non-appealable and non-reviewable or which
has or have not been stayed pending appeal or review or as to which all rights to appeal or review
have expired or been exhausted, shall be rendered against Suburban Propane or any of its Restricted
Subsidiaries; provided, such judgment or judgments requires or require the payment of money
in excess of $15.0 million in the aggregate and is not covered by insurance or discharged or stayed
pending appeal or review within 60 days after entry of such judgment;

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

     (i) commences a voluntary case;

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

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

     (iv) makes a general assignment for the benefit of its creditors; or

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

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

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

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

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

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

     SECTION 5.02 Acceleration. (a) In the case of an Event of Default specified in clause
(g) or (h) of Section 5.01 hereof, with respect to Suburban Propane, Finance Corp. or any
Significant Subsidiary of Suburban Propane, all outstanding Securities will become due and

31

 

payable immediately without further action or notice. If any other Event of Default occurs
and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities
of a series may declare all the Securities of such series to be due and payable immediately. Upon
any such declaration, the Securities of such series shall become due and payable immediately.

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

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

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

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

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

     (v) in the event of the cure or waiver of an Event of Default of the type described in
clause (g) or (h) of Section 5.01 hereof, if the Trustee shall have received an Officers’
Certificate stating that such Event of Default has been cured or waived.

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

     SECTION 5.03 Other Remedies.

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

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

     SECTION 5.04 Waiver of Past Defaults.

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Securities of a series by notice to the Trustee may, on behalf of the Holders of all of the
Securities of such series, waive an existing Default or Event of Default and its consequences
hereunder, except a continuing Default or Event of Default in the payment of the principal of,
premium or interest on, the Securities of such series (including in connection with an offer to

32

 

purchase); provided, however, that the Holders of a majority in aggregate
principal amount of the then outstanding Securities of a series may rescind an acceleration and its
consequences, including any related payment default that resulted from such acceleration. Upon any
such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereon.

     SECTION 5.05 Control by Majority.

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

     SECTION 5.06 Limitation on Suits.

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

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

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

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

     (d) the Trustee has not complied with such request within 60 days after receipt thereof and
the offer of security or indemnity; and

     (e) the Holders of a majority in aggregate principal amount of the then outstanding Securities
of a series have not given the Trustee a direction inconsistent with such request during such
60-day period.

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

     SECTION 5.07 Rights of Holders of Securities to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
of a series to receive payment of principal, premium and interest on the Security of such series,
on or after the respective due dates expressed in the Security of such series (including in
connection with an offer to purchase), or to bring suit for the enforcement of any such payment

33

 

on or after such respective dates, shall not be impaired or affected without the consent of
such Holder.

     SECTION 5.08 Collection Suit by Trustee.

     If an Event of Default specified in Section 5.01(a) or (b) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against Suburban Propane for the whole amount of principal of, premium and interest remaining
unpaid on the Securities and interest on overdue principal and, to the extent lawful, interest and
such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     SECTION 5.09 Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Securities of a series allowed in any judicial proceedings relative
to Suburban Propane (or any other obligor upon the Securities of a series), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 5.10 Priorities.

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

     First: to the Trustee, its agents and attorneys for amounts due under Section 6.07
hereof, including payment of all compensation, expenses and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

34

 

     Second: to Holders of Securities of a series for amounts due and unpaid on the
Securities of such series for principal, premium and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on the Securities of such
series for principal, premium and interest, respectively; and

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

     The Trustee may fix a record date and payment date for any payment to Holders of Securities of
a series pursuant to this Section 5.10.

     SECTION 5.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 5.11 does not apply to a
suit by the Trustee, a suit by a Holder of a Security of a series pursuant to Section 5.07 hereof,
or a suit by Holders of more than 10% in principal amount of the then outstanding Securities of a
series.

ARTICLE VI

The Trustee

     SECTION 6.01 Certain Duties and Responsibilities. (a) Except during the continuance
of an Event of Default,

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they conform to the requirements of
this Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

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

35

 

     (c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

     (i) this SubSection shall not be construed to limit the effect of SubSection (a) of
this Section;

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

     (iii) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Securities of any series, given pursuant to Section
5.05, relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture with respect to the Securities of such series; and

     (iv) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

     (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

     SECTION 6.02 Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit to the Holders
of Securities of such series notice as provided in Section 1.06 of such default hereunder known to
the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the principal of (or
premium, if any, on) or interest on any Security of such series or in the payment of any sinking
fund installment with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the Board of Supervisors, the executive committee or a
trust committee of directors or Responsible Trust Officers of the Trustee in good faith determines
that the withholding of such notice is in the interest of the Holders of Securities of such series;
provided, further, that in the case of any default of the character specified in
Section 5.01(d) with respect to Securities of such series, no such notice to Holders shall be given
until at least 30 days after the occurrence of such default. For the purpose of this Section, the
term “default” means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of such series.

     SECTION 6.03 Certain Rights of Trustee. Subject to the provisions of Section 6.01:

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting in reliance upon any resolution, certificate, statement, instrument, opinion, report,

36

 

notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (b) any request or direction of the Issuers mentioned herein shall be sufficiently evidenced
by an Issuers’ Request or Issuers’ Order and any resolution of the Board of Supervisors may be
sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate;

     (d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Issuers, personally or by agent or attorney at the sole cost of the Issuers and shall incur no
liability or additional liability of any kind by reason of such inquiry or investigation;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or counsel, and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or counsel appointed with due
care;

     (h) the Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture;

     (i) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action;

     (j) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Trust Officer of the Trustee has actual knowledge thereof or unless written

37

 

notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture;

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

     (l) the Trustee may request that the Issuers deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

     SECTION 6.04 Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the Trustee’s certificates of authentication, shall
be taken as the statements of the Issuers, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Issuers of Securities or the proceeds thereof.

     SECTION 6.05 May Hold Securities. The Trustee, any Paying Agent, any Security
Registrar or any other agent of the Issuers, in its individual or any other capacity, may become
the owner or pledgee of Securities or warrants to purchase Securities and, subject to Section 6.08,
may otherwise deal with the Issuers with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.

     SECTION 6.06 Money Held in Trust. Except as provided in Section 1.14, money held by
the Trustee or any Paying Agent in trust hereunder need not be segregated from other funds except
to the extent required by law. The Trustee or any Paying Agent shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed with the Issuers.

     SECTION 6.07 Compensation and Reimbursement. (a) Each of the Issuers agrees:

     (i) to pay to the Trustee from time to time in Dollars such compensation as shall be
agreed to from time to time in writing between the Issuers and the Trustee for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

     (ii) except as otherwise expressly provided herein, to reimburse the Trustee in Dollars
upon its request for all reasonable expenses, disbursements and advances incurred or made by
the Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (iii) to indemnify each of the Trustee and any predecessor Trustee and their agents in
Dollars for, and to hold it harmless against, any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, or measured or determined by, the
income of the Trustee) incurred without negligence or bad faith on its

38

 

part, arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of defending itself against any
claim (whether asserted by the Issuers, any Holder or any other Person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder, or in
connection with enforcing the provisions of this Section.

     (b) As security for the performance of the obligations of the Issuers under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of, premium, if any,
or interest, if any, on particular Securities.

     (c) When the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.01(f) and Section 5.01(g), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable Federal or state bankruptcy, insolvency
or other similar law. The provisions of this Section shall survive the termination of this
Indenture.

     SECTION 6.08 Disqualification; Conflicting Interests. (a) If the Trustee has or shall
acquire any conflicting interest, as defined in Section 310(b) of the Trust Indenture Act, with
respect to the Securities of any series, it shall, within 90 days after ascertaining that it has
such conflicting interest, either eliminate such conflicting interest or resign with respect to the
Securities of that series in the manner and with the effect provided by, and subject to the
provisions of, Section 310(b) of the Trust Indenture Act and this Indenture; provided,
however, that there shall be excluded from the operation of Section 310(b)(1) of the Trust
Indenture Act any indenture or indentures under which other securities or certificates of interest
or participation in other securities of the Issuers are outstanding if the requirements for such
exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met.

     (b) In the event that the Trustee shall fail to comply with the provisions of the preceding
sentence with respect to the Securities of any series, the Trustee shall, within 10 days after the
expiration of such 90-day period, transmit, in the manner and to the extent provided in Section
1.06, to all Holders of Securities of that series notice of such failure.

     (c) Nothing herein shall prevent the Trustee from filing with the Commission the application
referred to in the penultimate paragraph of Section 310(b) of the Trust Indenture Act.

     (d) To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to
have a conflicting interest with respect to the Securities of any series by virtue of being Trustee
with respect to the Securities of any particular series of Securities other than that series.

     SECTION 6.09 Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee for each series of Securities hereunder which shall be either (1) a corporation organized
and doing business under the laws of the United States of America, any State thereof or the
District of Columbia, which is authorized under such laws to exercise corporate trust powers and is
subject to supervision or examination by Federal or State authority and having its Corporate

39

 

Trust Office located in The City of New York or (2) a corporation or other Person organized
and doing business under the laws of a foreign government that is permitted to act as Trustee
pursuant to a rule, regulation or order of the Commission, which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by authority of such
foreign government or a political subdivision thereof substantially equivalent to supervision or
examination applicable to United States institutional trustees; in either case having a combined
capital and surplus of at least $50,000,000. If such corporation or Person publishes reports of
condition at least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of
such corporation or Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. Neither the Issuers nor any Person directly or
indirectly controlling, controlled by, or under common control with the Issuers shall serve as
trustee for the Securities of any series issued hereunder. If at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

     SECTION 6.10 Resignation and Removal; Appointment of Successor. (a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee in accordance with
the applicable requirements of Section 6.11.

     (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Issuers. If the instrument of acceptance by a successor
Trustee required by Section 6.11 shall not have been delivered to the resigning Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee, at the expense of the
Issuers, may petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

     (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Issuers.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 6.08 after written request therefor
by the Issuers or by any Holder who has been a bona fide Holder of a Security of a series as
to which the Trustee has a conflicting interest for at least six months, or

     (ii) the Trustee for a series shall cease to be eligible under Section 6.09 and shall
fail to resign after written request therefor by the Issuers or by any Holder of Securities
of such series, or

     (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

40

 

then, in any such case, (i) the Issuers by a Board Resolution may remove the Trustee with respect
to all Securities, or (ii) subject to Section 5.11, any Holder who has been a bona fide Holder of a
Security for at least six months (and, in the case of clause (i) above, who is a holder of a
Security of a series as to which the Trustee has a conflicting interest) may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of the Trustee for any cause, with respect to the Securities of one or
more series, the Issuers, by a Board Resolution, shall promptly appoint a successor Trustee or
Trustees with respect to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more of or all such
series and that at any time there shall be only one Trustee with respect to the Securities of any
particular series) and such successor Trustee or Trustees shall comply with the applicable
requirements of Section 6.11. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series
shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Issuers and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with respect to the
Securities of such series and to that extent supersede the successor Trustee appointed by the
Issuers. If no successor Trustee with respect to the Securities of any series shall have been so
appointed by the Issuers or the Holders and accepted appointment in the manner required by Section
6.11, the Trustee being removed, at the expense of the Issuers, or any Holder who has been a bona
fide Holder of a Security of such series for at least six months, on behalf of himself and all
others similarly situated, may petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.

     (f) The Issuers shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series by giving notice of such event to all Holders of Securities of such
series as provided by Section 1.06. Each notice shall include the name of the successor Trustee
with respect to the Securities of such series and the address of its Corporate Trust Office.

     SECTION 6.11 Acceptance of Appointment by Successor. (a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Issuers and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on the request of the Issuers or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder.

41

 

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Issuers, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture, the resignation
or removal of the retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall become vested with all
the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates; but, on request of
the Issuers or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of such successor
Trustee relates.

     (c) Upon request of any such successor Trustee, the Issuers shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

     SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided that such
corporation shall be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

42

 

     SECTION 6.13 Appointment of Authenticating Agent. (a) The Issuers may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon
original issue or upon exchange, registration of transfer or partial redemption thereof or pursuant
to Section 3.05, and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Trustee and shall at all times be a
corporation having a combined capital and surplus of not less than the equivalent of $50,000,000
and subject to supervision or examination by Federal, state or District of Columbia authority or
the equivalent foreign authority, in the case of an Authenticating Agent who is not organized and
doing business under the laws of the United States of America, any state thereof or the District of
Columbia. If such Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions
of this Section, such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

     (b) Any corporation into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to
the corporate agency or corporate trust business of such Authenticating Agent, shall continue to be
an Authenticating Agent; provided such corporation shall be otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the part of the Trustee
or such Authenticating Agent.

     (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Issuers. The Issuers may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the Trustee. Upon
receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
the Issuers may appoint a successor Authenticating Agent which shall be acceptable to the Trustee
and shall mail, or cause to be mailed, written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Securities, if any, of the series with respect to which such
Authenticating Agent will serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested
with all the rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

43

 

     (d) The Issuers agree to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     (e) If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

     This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

THE BANK OF NEW YORK MELLON, As Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

[          ]
	 	 
	 

	 	As Authenticating Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized [Officer] [Signatory]
	 	 

     (f) If all the Securities of a series may not be originally issued at one time, and if the
Trustee does not have an office capable of authenticating Securities upon original issuance located
in a Place of Payment or other place where the Issuers wish to have Securities of such series
authenticated upon original issuance, the Issuers shall appoint in accordance with this Section an
Authenticating Agent (which may be an Affiliate of the Issuers if eligible to be appointed as an
Authenticating Agent hereunder) having an office in such Place of Payment or other place designated
by the Issuers with respect to such series of Securities.

     SECTION 6.14 Preferential Collection of Claims.

     If and when the Trustee shall be or become a creditor of the Issuers (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Issuers (or any such other obligor).

ARTICLE VII

Holders’ Lists and Reports by Trustee and the Issuers

     SECTION 7.01 Issuers to Furnish Trustee Names and Addresses of Holders. The Issuers
will furnish or cause to be furnished to the Trustee:

     (a) semiannually, not later than 15 days after each Regular Record Date, a list in such form
as the Trustee may reasonably require, of the names and addresses of the Holders of each series of
Securities as of the Regular Record Date; and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Issuers of any such request, a list of similar form and content, such list to be
dated as of a date not more than 15 days prior to the time such list is furnished; notwithstanding
the foregoing SubSections (a) and (b), at such times as the Trustee is the Security Registrar and

44

 

Paying Agent with respect to a particular series of Securities, no such list shall be required
to be furnished in respect of such series.

     SECTION 7.02 Preservation of Information; Communications to Holders. (a) The Trustee
shall preserve, in as current a form as is reasonably practicable, the names and addresses of
Holders of each series contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders of each series received by the Trustee in any
capacity as Security Registrar or Paying Agent. The Trustee may destroy any list furnished to it
as provided in Section 7.01 upon receipt of a new list so furnished.

     (b) If three or more Holders of Securities of any series (herein referred to as
“applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof
that each such applicant has owned a Security of such series for a period of at least six months
preceding the date of such application, and such application states that the applicants desire to
communicate with other Holders of Securities of such series with respect to their rights under this
Indenture or under such Securities and is accompanied by a copy of the form of proxy or other
communication which such applicants propose to transmit, then the Trustee shall, within five
business days after the receipt of such application, at its election, either:

     (i) afford such applicants access to the information preserved at the time by the
Trustee in accordance with Section 7.02(a), or

     (ii) inform such applicants as to the approximate number of Holders of Securities of
such series whose names and addresses appear in the information preserved at the time by the
Trustee in accordance with Section 7.02(a), and as to the approximate cost of mailing to
such Holders the form of proxy or other communication, if any, specified in such
application.

     If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder of Securities of
such series whose name and address appear in the information preserved at the time by the Trustee
in accordance with Section 7.02(a) a copy of the form of proxy or other communication which is
specified in such request, with reasonable promptness after a tender to the Trustee of the material
to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender the Trustee shall mail to such applicants and file with
the Commission, together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to the best interest of
the Holders of such series or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon
the objections specified in the written statement so filed, shall enter an order refusing to
sustain any of such objections or if, after the entry of an order sustaining one or more of such
objections, the Commission shall find, after notice and opportunity for hearing, that all the
objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all such Holders with reasonable promptness after the entry of such
order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or
duty to such applicants respecting their application.

45

 

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Issuers and
the Trustee that neither the Issuers nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the Holders in accordance with Section 7.02(b), regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 7.02(b).

     SECTION 7.03 Reports by Trustee. (a) Within 60 days after May 15 of each year
commencing with the May 15 occurring after the initial issuance of Securities hereunder, the
Trustee shall transmit by mail to the Holders of Securities, as provided in SubSection (c) of this
Section, a brief report dated as of such May 15 in accordance with and to the extent required under
Section 313 of the Trust Indenture Act.

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each United States stock exchange upon which any Securities are listed, with the
Commission and with the Issuers.

     (c) Reports pursuant to Section 7.03(a) shall be transmitted by mail (i) to all Holders, as
their names and addresses appear in the Security Register, (ii) to all Holders as have, within two
years preceding such transmission, filed their names and addresses with the Trustee for such
purpose, and (iii) to all Holders whose names and addresses have been furnished or received by the
Trustee pursuant to Sections 7.01 and 7.02.

     SECTION 7.04 Reports by Issuers. The Issuers shall:

     (i) file with the Trustee, within 15 days after the Issuers are required to file the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Issuers may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Issuers are not required to file information, documents or reports pursuant to either of
said Sections, then it shall file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be required pursuant
to Section 13 of the Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such rules and
regulations;

     (ii) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Issuers with the conditions and covenants of this
Indenture as may be required from time to time in such rules and regulations;

     (iii) transmit by mail to all Holders of Securities, in the manner and to the extent
provided in Section 7.03(c) with respect to reports to be transmitted pursuant to Section
7.03(a), within 30 days after the filing thereof with the Trustee, such summaries

46

 

of any information, documents and reports required to be filed by the Issuers pursuant
to paragraph (i) of (ii) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission; and

     (iv) promptly notify the Trustee when any Securities are listed on any stock exchange
and any delisting thereof.

     Delivery of such reports, information and documents to the Trustee pursuant to this Section
7.04 is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Issuers’ compliance with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

ARTICLE VIII

Successors

     SECTION 8.01 Merger, Consolidation or Sale of Assets.

     (a) Suburban Propane shall not, directly or indirectly: (1) consolidate or merge with or into
another Person (whether or not Suburban Propane is the surviving Person); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of
Suburban Propane and its Restricted Subsidiaries taken as a whole, in one or more related
transactions to, another Person; unless:

     (i) Suburban Propane is the surviving Person, or the Person formed by or surviving any
such consolidation or merger (if other than Suburban Propane) or to which such sale,
assignment, transfer, lease, conveyance or other disposition shall have been made is a
corporation or partnership organized or existing under the laws of the United States, any
state thereof or the District of Columbia;

     (ii) the Person formed by or surviving any such consolidation or merger (if other than
Suburban Propane) or the Person to which such sale, assignment, transfer, lease, conveyance
or other disposition shall have been made assumes all the obligations of Suburban Propane
pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee, under
the Securities and this Indenture;

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

     (iv) Suburban Propane or such other Person formed by or surviving any such
consolidation or merger, or to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made (A) will have [     ] (immediately after the
transaction but prior to any purchase accounting adjustments resulting from the transaction)
equal to or greater than the [     ] of Suburban Propane immediately preceding the
transaction and (B) will, at the time of such transaction and after giving pro forma effect
thereto as if such transaction had occurred at the beginning of the applicable Four-Quarter
Period, be permitted to incur any Indebtedness as may be set forth in a supplemental
indenture in respect of the issuance of any series of Securities.

47

 

     (b) Finance Corp. shall not (1) consolidate or merge with or into another Person (whether or
not Finance Corp. is the surviving Person); or (2) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of Finance Corp. in one or more
related transactions to, another Person; unless:

     (i) Finance Corp. is the surviving Person, or the Person formed by or surviving any
such consolidation or merger (if other than Finance Corp.) or to which such sale,
assignment, transfer, lease, conveyance or other disposition shall have been made is a
corporation organized or existing under the laws of the United States, any state thereof or
the District of Columbia and a Wholly Owned Restricted Subsidiary of Suburban Propane;

     (ii) the Person formed by or surviving any such consolidation or merger (if other than
Finance Corp.) or the Person to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made assumes all the obligations of Finance Corp.,
pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee, under
the Securities and this Indenture; and

     (iii) immediately after such transaction no Default or Event of Default exists.

     (c) If Suburban Propane engages in a merger, consolidation or sale of assets in accordance
with the provisions described in the foregoing paragraph (a), Suburban Propane or the Person formed
by or surviving such transaction will comply with the covenant regarding the existence of a
corporate co-issuer in the applicable supplemental indenture in respect of a series, if any.

     (d) In addition, the Issuers may not, directly or indirectly, lease all or substantially all
of their properties or assets, in one or more related transactions, to any other Person. This
Section 8.01 will not apply to:

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

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

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

48

 

     SECTION 8.02 Successor Person Substituted. Upon any consolidation or merger, or any
sale, assignment, transfer, conveyance or other disposition of all or substantially all of the
properties and assets of any Issuer in a transaction that is subject to, and that complies with the
provisions of, Section 8.01 hereof, the successor Person formed by such consolidation or into or
with which such Suburban Propane is merged or to which such sale, assignment, transfer, conveyance
or other disposition is made shall succeed to, and be substituted for (so that from and after the
date of such consolidation, merger, sale, conveyance or other disposition, the provisions of this
Indenture referring to “Suburban Propane,” “Finance Corp.” or the “Issuers,” as the case may be,
shall refer to or include instead the successor Person and not Suburban Propane or Finance Corp.,
as the case may be), and may exercise every right and power of such Issuer under this Indenture
with the same effect as if such successor Person had been named as such Issuer herein and
thereafter the predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

ARTICLE IX

Supplemental Indentures

     SECTION 9.01 Supplemental Indentures without Consent of Holders. Without the consent
of any Holders, the Issuers, when authorized by or pursuant to a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:

     (i) to evidence the succession of another corporation to either or both of the Issuers
and the assumption by any such successor of the covenants of such Issuers herein and in the
Securities;

     (ii) to add to the covenants of the Issuers for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Issuers;

     (iii) to add any additional Events of Default with respect to all or any series of the
Securities (and, if such Event of Default is applicable to less than all series of
Securities, specifying the series to which such Event of Default is applicable);

     (iv) to add to or change any of the provisions of this Indenture to such extent as
shall be necessary to facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons;

     (v) to add to, change or eliminate any of the provisions of this Indenture;
provided, that any such addition, change or elimination shall become effective only
when there is no Security Outstanding of any series created prior to the execution of such
supplemental indenture which is adversely affected by such change in or elimination of such
provision;

     (vi) to establish the form or terms of Securities of any series as permitted by
Sections 2.02;

49

 

     (vii) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 6.11(b);

     (viii) to provide for the issuance of uncertificated Securities of one or more series
in addition to or in place of certificated Securities;

     (ix) to cure any ambiguity or to correct or supplement any provision herein which may
be defective or inconsistent with any other provision herein; or

     (x) to make any other provisions with respect to matters or questions arising under
this Indenture; provided, such other provisions as may be made shall not adversely
affect the interests of the Holders of outstanding Securities of any series in any material
respect.

     SECTION 9.02 Supplemental Indentures with Consent of Holders. (a) With the consent of
the Holders of not less than a majority in principal amount of the Outstanding Securities of all
series affected by such supplemental indenture (acting as one class), by Act of said Holders
delivered to the Issuers and the Trustee, the Issuers, when authorized by or pursuant to a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of Securities of such
series under this indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each outstanding Security affected thereby,

     (i) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.02, or change any
Place of Payment where, or the currency, currencies or currency unit or units in which, any
Security or any premium or the interest thereon is payable, or impair the right to institute
suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or affect adversely the terms, if
any, of conversion of any Security into stock or other securities of the Issuers or of any
other corporation,

     (ii) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture,

50

 

     (iii) change any obligation of the Issuers, with respect to Outstanding Securities of a
series, to maintain an office or agency in the places and for the purposes specified in
Section 10.02 for such series, or

     (iv) modify any of the provisions of this Section or Section 5.04, except to increase
any such percentage or to provide with respect to any particular series the right to
condition the effectiveness of any supplemental indenture as to that series on the consent
of the Holders of a specified percentage of the aggregate principal amount of Outstanding
Securities of such series (which provision may be made pursuant to Section 2.02 without the
consent of any Holder) or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security
affected thereby; provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the references to “the Trustee”
and concomitant changes in this Section, or the deletion of this proviso, in accordance with
the requirements of Section 6.11(b) and 9.01(vii).

     (b) For purposes of this Section 9.02, if the Securities of any series are issuable upon the
exercise of warrants, each holder of an unexercised and unexpired warrant with respect to such
series shall be deemed to be a Holder of Outstanding Securities of such series in the amount
issuable upon the exercise of such warrant. For such purposes, the ownership of any such warrant
shall be determined by the Issuers in a manner consistent with customary commercial practices. The
Trustee for such series shall be entitled to conclusively rely on an Officers’ Certificate as to
the principal amount of Securities of such series in respect of which consents shall have been
executed by holders of such warrants.

     (c) A supplemental indenture which changes or eliminates any covenant or other provision of
this Indenture which has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series. It shall not be necessary for any Act
of Holders under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof.

     SECTION 9.03 Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive (in addition to the opinion which the Trustee is entitled to receive pursuant to
Section 2.02), and (subject to Section 6.01) shall be fully protected in relying upon, an Opinion
of Counsel stating that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties, immunities or liabilities under this
Indenture or otherwise.

     SECTION 9.04 Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture for all purposes;

51

 

and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

     SECTION 9.05 Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as
then in effect.

     SECTION 9.06 Reference in Securities to Supplemental Indentures. Securities of any
series authenticated and delivered after the execution of any supplemental indenture pursuant to
this Article may, and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the Issuers shall so
determine, new Securities of any series so modified as to conform, in the opinion of the Trustee
and the Issuers, to any such supplemental indenture may be prepared and executed by the Issuers and
authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.

ARTICLE X

Covenants

     SECTION 10.01 Payment of Securities.

     Suburban Propane will pay or cause to be paid the principal of, premium, if any, and interest
on the Securities of a series on the dates and in the manner provided in the Securities of such
series. Principal, premium, if any, and interest will be considered paid on the date due if the
Paying Agent, of other than the Issuers or a Subsidiary thereof, holds as of 10:00 a.m. Eastern
Time on the due date money deposited by Suburban Propane in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and interest then due.

     Suburban Propane will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Securities of a series to the extent lawful; it will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest at the same rate to the extent lawful.

     SECTION 10.02 Maintenance of Office or Agency.

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

     Suburban Propane may also from time to time designate one or more other offices or agencies
where the Securities of one or more series may be presented or surrendered for any or

52

 

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

     Suburban Propane hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of Suburban Propane in accordance with Section 6.09 hereof.

     SECTION 10.03 Reports.

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

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

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

All such reports will be prepared in all material respects in accordance with all of the rules and
regulations applicable to such reports. Each annual report on Form 10-K will include a report on
the Issuers’ consolidated financial statements by the Issuers’ certified independent accountants.
In addition, the Issuers will file a copy of each of the reports referred to in clauses (1) and (2)
above with the Commission for public availability within the time periods specified in the rules
and regulations applicable to such reports (unless the Commission will not accept such a filing)
and will post the reports, or links to such reports, on Suburban Propane’s website within those
time periods.

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

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

53

 

operations of Suburban Propane and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of Suburban Propane.

     SECTION 10.04 Compliance Certificate.

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

     (b) So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the year-end financial statements delivered pursuant to Section 10.03
above shall be accompanied by a written statement of Suburban Propane’s independent public
accountants (who shall be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to their attention that
would lead them to believe that Suburban Propane has violated any provisions of Article V or
Article X hereof or, if any such violation has occurred, specifying the nature and period of
existence thereof, it being understood that such accountants shall not be liable directly or
indirectly to any Person for any failure to obtain knowledge of any such violation.

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

     SECTION 10.05 Corporate Existence.

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

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

54

 

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

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

     SECTION 10.06 Existence of Corporate Co-Issuer. Suburban Propane will always
maintain, directly or indirectly, a wholly-owned Restricted Subsidiary of Suburban Propane
organized as a corporation under the laws of the United States of America, any state thereof or the
District of Columbia that will serve as a co-obligor of the Securities unless Suburban Propane is
itself a corporation under the laws of the United States of America, any state thereof or the
District of Columbia.

     SECTION 10.07 Calculation of Original Issue Discount.

     The Issuers shall file with the Trustee promptly after the issuance of any series of
Securities pursuant to this Indenture, (i) a written notice specifying the amount of original issue
discount (including a depreciation schedule, daily rates and accrual periods) accrued on
Outstanding Securities as of such date and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended
from time to time.

ARTICLE XI

Redemption of Securities

     SECTION 11.01 Applicability of Article. Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 2.02 for Securities of any series) in accordance
with this Article.

     SECTION 11.02 Election to Redeem; Notice to Trustee. The election of the Issuers to
redeem any Securities shall be evidenced by Board Resolutions. If the Issuers shall desire to
exercise the right to redeem all, or, as the case may be, any part of the Securities of any series,
the Issuers shall, at least 15 days but no more than 60 days prior to the Redemption Date fixed by
the Issuers (unless a shorter notice shall be satisfactory to the Trustee), notifying the Trustee
of such Redemption Date and of the principal amount of Securities of such series to be redeemed.
In the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Issuers
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such
restriction.

     SECTION 11.03 Selection by Trustee of Securities to be Redeemed.

     If less than all of the Securities of any series are to be redeemed at any time, the Trustee
will select Securities for redemption as follows:

55

 

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

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

     No Securities of $2,000 or less can be redeemed in part. Notices of redemption will be mailed
by first class mail at least 30 but not more than 60 days before the Redemption Date to each Holder
of Securities to be redeemed at its registered address, except that redemption notices may be
mailed more than 60 days prior to a Redemption Date if the notice is issued in connection with a
defeasance of the Securities or a satisfaction and discharge of this Indenture. Notices of
redemption may not be conditional.

     If any Security is to be redeemed in part only, the notice of redemption that relates to that
Security will state the portion of the principal amount of that Security that is to be redeemed. A
new Security in principal amount equal to the unredeemed portion of the original Security will be
issued in the name of the Holders of such Securities upon cancellation of the original Security.
Securities called for redemption become due on the date fixed for redemption. On and after the
Redemption Date, interest ceases to accrue on Securities or portions of them called for redemption.

     The Trustee shall promptly notify the Issuers in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

     SECTION 11.04 Notice of Redemption. (a) Notice of redemption shall be given not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, as provided in Section 1.06.

     (b) Each such notice of redemption shall specify the Redemption Date, the Redemption Price,
the Place or Places of Payment, that the Securities of such series are being redeemed at the option
of the Issuers pursuant to provisions contained in the terms of the Securities of such series or in
a supplemental indenture establishing such series, if such be the case, together with a brief
statement of the facts permitting such redemption, that on the Redemption Date the Redemption Price
will become due and payable upon each Security redeemed, that payment will be made upon
presentation and surrender of the applicable Securities, that any interest accrued to the
Redemption Date will be paid as specified in said notice, that the redemption is pursuant to the
sinking fund, if such is the case, and that on and after said Redemption Date any interest thereon
or on the portions thereof to be redeemed will cease to accrue. If less than all the Securities of
any series are to be redeemed, the notice of redemption shall specify the registration and, if any,
CUSIP numbers of the Securities of such

56

 

series to be redeemed. In case any Security of any series is to be redeemed in part only, the
notice of redemption shall state the portion of the principal amount thereof to be redeemed and
shall state that on and after the Redemption Date, upon surrender of such Security, a new Security
or Securities of such series in principal amount equal to the unredeemed portion thereof will be
issued, or, in the case of Securities providing appropriate space for such notation, at the option
of the Holders, the Trustee, in lieu of delivering a new Security or Securities as aforesaid, may
make a notation on such Security of the payment of the redeemed portion thereof.

     (c) Notice of redemption of Securities to be redeemed at the election of the Issuers shall be
given by the Issuers or, at the Issuers’ request, delivered at least 5 Business Days before the
date such notice is to be given (unless a shorter period shall be acceptable to the Trustee),by the
Trustee in the name and at the expense of the Issuers.

     SECTION 11.05 Deposit of Redemption Price. On or before 10:00 a.m. Eastern Time on
any Redemption Date, Suburban Propane shall deposit with the Trustee or with a Paying Agent (or, if
Suburban Propane is acting as its own paying Agent, segregate and hold in trust as provided in
Section 12.05) an amount of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities which
are to be redeemed on that date. The Trustee or the Paying Agent will promptly return to Suburban
Propane any money deposited with the Trustee or the Paying Agent by Suburban Propane in excess of
the amounts necessary to pay the Redemption Price and (except if the Redemption Date shall be an
Interest Payment Date) any accrued interest on, all the Securities which are to be redeemed on that
date, if any.

     SECTION 11.06 Securities Payable on Redemption Date. (a) Notice of redemption having
been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due
and payable at the Redemption Price therein specified, and from and after such date (unless the
Issuers shall default in the payment of the Redemption Price and accrued interest) such Securities
shall cease to bear interest. Upon surrender of any such Security for redemption in accordance
with said notice, such Security shall be paid by the Issuers at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that unless otherwise
specified as contemplated by Section 2.02, installments of interest on Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of business on the relevant
Record Dates according to their terms and the provisions of Section 3.06.

     (b) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

     SECTION 11.07 Securities Redeemed in Part. Any Security which is to be redeemed only
in part shall be surrendered at a Place of Payment therefor (with, if the Issuers or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the
Issuers and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Issuers shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Security without service charge, a new Security or Securities of the
same series and Stated Maturity, of any authorized denomination as requested

57

 

by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered or, in the case of Securities providing
appropriate space for such notation, at the option of the Holder, the Trustee, in lieu of
delivering a new Security or Securities as aforesaid, may make a notation on such Security of the
Payment of the redeemed portion thereof.

     SECTION 11.08 Optional Redemption.

     (a) The Issuers may on any one or more occasions redeem an or all of the aggregate principal
amount of Securities of a series issued under this Indenture and any applicable supplemental
indenture at the redemption prices set forth in such applicable supplemental indenture, plus
accrued and unpaid interest, if any, to the Redemption Date for such series, as set forth in such
applicable supplemental indenture.

     (b) Any redemption pursuant to this Section 11.08 shall be made pursuant to the provisions of
Article XI hereof.

     (c) Unless the Issuers default in the payment of the redemption price, interest will cease to
accrue on the Securities of a series or portions thereof called for redemption on the applicable
Redemption Date.

     SECTION 11.09 Mandatory Redemption.

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

ARTICLE XII

Legal Defeasance and Covenant Defeasance

SECTION 12.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuers may, at the option of the Board of Supervisors of Suburban Propane evidenced by a
resolution set forth in an Officers’ Certificate, and at any time, elect to have either Section
12.02 or 12.03 hereof be applied to all outstanding Securities of a series upon compliance with the
conditions set forth below in this Article XII.

SECTION 12.02 Legal Defeasance and Discharge.

     Upon the Issuers’ exercise under Section 12.01 hereof of the option applicable to this Section
12.02, the Issuers will, subject to the satisfaction of the conditions set forth in Section 12.04
hereof, be deemed to have been discharged from their obligations with respect to all outstanding
Securities of a series on the date the conditions set forth below are satisfied (hereinafter,
“Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuers will be
deemed to have paid and discharged the entire Indebtedness represented by the outstanding
Securities of a series, which will thereafter be deemed to be “outstanding” only for the purposes
of Section 12.05 hereof and the other Sections of this Indenture referred to in clauses (a) and (b)
below, and to have satisfied all their other obligations under such Securities of a series and this
Indenture (and the Trustee, on demand of and at the expense of Suburban

58

 

Propane, shall execute proper instruments acknowledging the same), except for the following
provisions which will survive until otherwise terminated or discharged hereunder:

     (a) the rights of Holders of outstanding Securities of a series to receive payments in respect
of the principal of, or interest or premium on such Securities of a series when such payments are
due from the trust referred to in Section 12.04 hereof;

     (b) the Issuers’ obligations with respect to such Securities of a series under Article II and
Section 12.05;

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

     (d) this Article XII.

     Subject to compliance with this Article XII, the Issuers’ may exercise their option under this
Section 12.02 notwithstanding the prior exercise of their option under Section 12.01 hereof.

SECTION 12.03 Covenant Defeasance.

     Upon the Issuers’ exercise under Section 12.01 hereof of the option applicable to this Section
12.03, the Issuers will, subject to the satisfaction of the conditions set forth in Section 12.04
hereof, be released from their obligations under the covenants contained in Section 10.03 hereof
(except with respect to the existence of each Issuer) and clause (A)(4) of Section 8.01 hereof with
respect to the outstanding Securities of a series on and after the date the conditions set forth in
Section 12.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Securities
of a series will thereafter be deemed not “outstanding” for the purposes of any direction, waiver,
consent or declaration or act of Holders (and the consequences of any thereof) in connection with
such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it
being understood that such Securities of a series will not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding
Securities, the Issuers may omit to comply with and will have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason
of any reference elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission to comply will
not constitute a Default or an Event of Default under Section 5.01 hereof, but, except as specified
above, the remainder of this Indenture and such Securities of a series will be unaffected thereby.
In addition, upon the Issuers’ exercise under Section 12.01 hereof of the option applicable to this
Section 12.03 hereof, subject to the satisfaction of the conditions set forth in Section 12.04
hereof, Section 5.01(c) through 5.01(f) hereof will not constitute Events of Default.

SECTION 12.04 Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 12.02
or 12.03 hereof:

59

 

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

     (b) in the case of a Legal Defeasance, the Issuers must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that (i) the Issuers have received from, or
there has been published by, the Internal Revenue Service a ruling or (ii) since the date of this
Indenture, there has been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the
outstanding Securities of a series will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

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

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

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

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

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

     (h) the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that,
assuming no intervening bankruptcy of the Issuers between the date of deposit and the 91st day
following the date of deposit and that no Holder is an insider of either of the Issuers, after the

60

 

91st day following the date of deposit, the trust funds will not be subject to the effect of
any applicable federal bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally.

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

SECTION 12.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

     Subject to Section 12.06 hereof, all money and noncallable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 12.05, the “Trustee”) pursuant to Section 12.04 hereof in respect of the
outstanding Securities of a series will be held in trust and applied by the Trustee, in accordance
with the provisions of such Securities and this Indenture, to the payment, either directly or
through any Paying Agent (including an Issuer acting as Paying Agent) as the Trustee may determine,
to the Holders of such Securities of all sums due and to become due thereon in respect of
principal, premium and interest, but such money need not be segregated from other funds except to
the extent required by law.

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

     Notwithstanding anything in this Article XII to the contrary, the Trustee will deliver or pay
to the Issuers from time to time upon the request of the Issuers any money or noncallable
Government Securities held by it as provided in Section 12.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section 12.04(a)
hereof), are in excess of the amount thereof that would then be required to be deposited to effect
an equivalent Legal Defeasance or Covenant Defeasance.

SECTION 12.06 Repayment to Suburban Propane.

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

61

 

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

SECTION 12.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars or noncallable
Government Securities in accordance with Section 12.02 or 12.03 hereof, as the case may be, by
reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Issuers’ obligations under this Indenture and the
Securities of a series will be revived and reinstated as though no deposit had occurred pursuant to
Section 12.02 or 12.03 hereof until such time as the Trustee or Paying Agent is permitted to apply
all such money in accordance with Section 12.02 or 12.03 hereof, as the case may be;
provided, however, that, if Suburban Propane makes any payment of principal of,
premium or interest on any Security of a series following the reinstatement of its obligations,
Suburban Propane will be subrogated to the rights of the Holders of such Securities to receive such
payment from the money held by the Trustee or Paying Agent.

62

 

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

	 	 	 	 	 
	 	SUBURBAN PROPANE PARTNERS, L.P.,

as Issuer

 	 
	 	By:  	/s/ Michael J. Dunn, Jr.
 	 
	 	 	Name:  	Michael J. Dunn, Jr. 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	SUBURBAN ENERGY FINANCE CORP.,

as Issuer

 	 
	 	By:  	/s/ Michael J. Dunn, Jr.
 	 
	 	 	Name:  	Michael J. Dunn, Jr. 	 
	 	 	Title:  	President 	 
	 
	 	THE BANK OF NEW YORK MELLON, as Trustee

 	 
	 	By:  	/s/ Franca M. Ferrera
 	 
	 	 	Name:  	Franca M. Ferrera 	 
	 	 	Title:  	Senior Associateexv4w2

EXHIBIT 4.2

SUBURBAN PROPANE PARTNERS, L.P.,

SUBURBAN ENERGY FINANCE CORP.,

as Issuers

and

THE BANK OF NEW YORK MELLON,

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of March 23, 2010

to the

INDENTURE

Dated as of March 23, 2010

 

$250,000,000 7-3/8% Senior Notes due 2020

 

 

SUBURBAN PROPANE PARTNERS, L.P.

SUBURBAN ENERGY FINANCE CORP.

Reconciliation and Tie between Trust Indenture Act of 1939

and Supplemental Indenture Provisions(1)

	 	 	 	 	 	 	 
	Trust Indenture Act	 	Supplemental Indenture
	Section	 	Section
	Section 310

	 	(a)(1)
	 	 	6.09	 
	 

	 	(a)(2)
	 	 	6.09	 
	 

	 	(a)(3)
	 	Not Applicable

	 

	 	(a)(4)
	 	Not Applicable

	 

	 	(b)
	 	 	6.08	 
	Section 311

	 	(a)
	 	6.10

Not Applicable

	 

	 	(b)
	 	Not Applicable

	 

	 	(b)(2)
	 	Not Applicable

	Section 312

	 	(a)
	 	 	7.01	 
	 

	 	(b)
	 	 	7.02

7.02	(a)

(b)
	 

	 	(c)
	 	 	7.02	(c)
	Section 313

	 	(a)
	 	 	7.03	(a)
	 

	 	(b)
	 	Not Applicable

	 

	 	(c)
	 	 	7.03	(c)
	 

	 	(d)
	 	 	7.03	(b)
	Section 314

	 	(a)
	 	 	7.04	 
	 

	 	(b)
	 	Not Applicable

	 

	 	(c)(1)
	 	 	2.02	 
	 

	 	(c)(2)
	 	 	2.02	 
	 

	 	(c)(3)
	 	Not Applicable

	 

	 	(d)
	 	Not Applicable

	 

	 	(e)
	 	 	2.02	 
	Section 315

	 	(a)
	 	 	6.01	(a)
	 

	 	(b)
	 	 	6.02	 
	 

	 	(c)
	 	 	6.01	(b)
	 

	 	(d)
	 	 	6.01	(c)
	 

	 	(d)(1)
	 	 	6.01	(a)
	 

	 	(d)(2)
	 	 	6.01	(c)(2)
	 

	 	(d)(3)
	 	 	6.01	(c)(3)
	 

	 	(e)
	 	 	5.11	 
	Section 316

	 	(a)
	 	 	2.01	 
	 

	 	(a)(1)(A)
	 	 	5.02	 
	 

	 	 	 	 	5.05	 
	 

	 	(a)(1)(B)
	 	 	5.04	 
	 

	 	(a)(2)
	 	Not Applicable

	 

	 	(b)
	 	 	5.07	 
	Section 317

	 	(a)(1)
	 	 	5.08	 
	 

	 	(a)(2)
	 	 	5.09	 
	 

	 	(b)
	 	 	13.05	 
	Section 318

	 	(a)
	 	 	2.07	 

 

			
	(1)	 	This reconciliation and tie shall not for any purpose, be deemed to be a part of the
Supplemental Indenture.

 

 

			
	TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I Application of Supplemental Indenture and Creation of the Notes
	 	 	2	 
	 
	 	 	 	 
	SECTION 1.01 Application of This Supplemental Indenture
	 	 	2	 
	SECTION 1.02 Effect of Supplemental Indenture
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II Definitions and Other Provisions of General Application
	 	 	3	 
	 
	 	 	 	 
	SECTION 2.01 Definitions
	 	 	3	 
	SECTION 2.02 Compliance Certificates and Opinions
	 	 	30	 
	SECTION 2.03 Form of Documents Delivered to Trustee
	 	 	30	 
	SECTION 2.04 Acts of Holders
	 	 	31	 
	SECTION 2.05 Notices, Etc., to Trustee and the Issuers
	 	 	32	 
	SECTION 2.06 Notice to Holders; Waiver
	 	 	32	 
	SECTION 2.07 Conflict with Trust Indenture Act
	 	 	33	 
	SECTION 2.08 Effect of Headings and Table of Contents
	 	 	33	 
	SECTION 2.09 Successors and Assigns
	 	 	33	 
	SECTION 2.10 Separability Clause
	 	 	33	 
	SECTION 2.11 Benefits of Supplemental Indenture
	 	 	33	 
	SECTION 2.12 Governing Law
	 	 	33	 
	SECTION 2.13 Legal Holidays
	 	 	33	 
	SECTION 2.14 Language of Notices, etc
	 	 	34	 
	SECTION 2.15 Changes in Exhibits
	 	 	34	 
	SECTION 2.16 Counterparts; Facsimile
	 	 	34	 
	SECTION 2.17 No Personal Liability of Limited Partners, Officers, Employees and Unitholders
	 	 	34	 
	SECTION 2.18 Non-Recourse
	 	 	34	 
	SECTION 2.19 Waiver of Jury Trial
	 	 	35	 
	SECTION 2.20 Force Majeure
	 	 	35	 
	 
	 	 	 	 
	ARTICLE III The Notes
	 	 	35	 
	 
	 	 	 	 
	SECTION 3.01 Form and Denomination
	 	 	35	 
	SECTION 3.02 Execution, Delivery, Dating and Authentication
	 	 	36	 
	SECTION 3.03 Temporary Notes
	 	 	37	 
	SECTION 3.04 Registration, Registration of Transfer and Exchange
	 	 	37	 
	SECTION 3.05 Mutilated, Destroyed, Lost and Stolen Notes
	 	 	39	 
	SECTION 3.06 Payment of Interest; Interest Rights Preserved
	 	 	39	 
	SECTION 3.07 Persons Deemed Owners
	 	 	41	 
	SECTION 3.08 Cancellation
	 	 	41	 
	SECTION 3.09 Computation of Interest
	 	 	41	 

i 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 3.10 Notes in Global Form
	 	 	41	 
	SECTION 3.11 Documents Required for Issuance of Notes
	 	 	42	 
	SECTION 3.12 CUSIP Numbers
	 	 	43	 
	 
	 	 	 	 
	ARTICLE IV Satisfaction and Discharge
	 	 	43	 
	 
	 	 	 	 
	SECTION 4.01 Satisfaction and Discharge of Supplemental Indenture in Respect of the Notes
	 	 	43	 
	SECTION 4.02 Application of Trust Money
	 	 	44	 
	SECTION 4.03 Reinstatement
	 	 	45	 
	 
	 	 	 	 
	ARTICLE V Defaults and Remedies
	 	 	45	 
	 
	 	 	 	 
	SECTION 5.01 Events of Default
	 	 	45	 
	SECTION 5.02 Acceleration
	 	 	47	 
	SECTION 5.03 Other Remedies
	 	 	47	 
	SECTION 5.04 Waiver of Past Defaults
	 	 	48	 
	SECTION 5.05 Control by Majority
	 	 	48	 
	SECTION 5.06 Limitation on Suits
	 	 	48	 
	SECTION 5.07 Rights of Holders of Notes to Receive Payment
	 	 	49	 
	SECTION 5.08 Collection Suit by Trustee
	 	 	49	 
	SECTION 5.09 Trustee May File Proofs of Claim
	 	 	49	 
	SECTION 5.10 Priorities
	 	 	50	 
	SECTION 5.11 Undertaking for Costs
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VI The Trustee
	 	 	50	 
	 
	 	 	 	 
	SECTION 6.01 Certain Duties and Responsibilities
	 	 	50	 
	SECTION 6.02 Notice of Defaults
	 	 	51	 
	SECTION 6.03 Certain Rights of Trustee
	 	 	51	 
	SECTION 6.04 Not Responsible for Recitals or Issuance of Notes
	 	 	53	 
	SECTION 6.05 May Hold Notes
	 	 	53	 
	SECTION 6.06 Money Held in Trust
	 	 	53	 
	SECTION 6.07 Compensation and Reimbursement
	 	 	53	 
	SECTION 6.08 Disqualification; Conflicting Interests
	 	 	54	 
	SECTION 6.09 Corporate Trustee Required; Eligibility
	 	 	55	 
	SECTION 6.10 Resignation and Removal; Appointment of Successor
	 	 	55	 
	SECTION 6.11 Acceptance of Appointment by Successor
	 	 	57	 
	SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	58	 
	SECTION 6.13 Appointment of Authenticating Agent
	 	 	58	 
	SECTION 6.14 Preferential Collection of Claims
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VII Holders’ Lists and Reports by Trustee and the Issuers
	 	 	59	 
	 
	 	 	 	 
	SECTION 7.01 Issuers to Furnish Trustee Names and Addresses of Holders
	 	 	59	 

ii 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 7.02 Preservation of Information; Communications to Holders
	 	 	60	 
	SECTION 7.03 Reports by Trustee
	 	 	61	 
	SECTION 7.04 Reports by Issuers
	 	 	61	 
	 
	 	 	 	 
	ARTICLE VIII Successors
	 	 	62	 
	 
	 	 	 	 
	SECTION 8.01 Merger, Consolidation or Sale of Assets
	 	 	62	 
	SECTION 8.02 Successor Person Substituted
	 	 	64	 
	 
	 	 	 	 
	ARTICLE IX Amendment, Supplement And Waiver
	 	 	64	 
	 
	 	 	 	 
	SECTION 9.01 Without Consent of Holders of the Notes
	 	 	64	 
	SECTION 9.02 With Consent of Holders of the Notes
	 	 	65	 
	SECTION 9.03 Compliance with Trust Indenture Act
	 	 	66	 
	SECTION 9.04 Revocation and Effect of Consents
	 	 	67	 
	SECTION 9.05 Notation on or Exchange of Notes
	 	 	67	 
	SECTION 9.06 Trustee to Sign Amendments, etc
	 	 	67	 
	 
	 	 	 	 
	ARTICLE X Covenants
	 	 	67	 
	 
	 	 	 	 
	SECTION 10.01 Payment of Notes
	 	 	67	 
	SECTION 10.02 Maintenance of Office or Agency
	 	 	68	 
	SECTION 10.03 Reports
	 	 	68	 
	SECTION 10.04 Compliance Certificate
	 	 	69	 
	SECTION 10.05 Taxes
	 	 	70	 
	SECTION 10.06 Stay, Extension and Usury Laws
	 	 	70	 
	SECTION 10.07 Changes in Covenants When Notes Rated Investment Grade
	 	 	70	 
	SECTION 10.08 Restricted Payments
	 	 	71	 
	SECTION 10.09 Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	74	 
	SECTION 10.10 Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	75	 
	SECTION 10.11 Asset Sales
	 	 	79	 
	SECTION 10.12 Transactions with Affiliates
	 	 	80	 
	SECTION 10.13 Liens
	 	 	82	 
	SECTION 10.14 Business Activities
	 	 	82	 
	SECTION 10.15 Corporate Existence
	 	 	82	 
	SECTION 10.16 Offer to Repurchase Upon Change of Control
	 	 	82	 
	SECTION 10.17 Limitations on Issuances of Guarantees of Indebtedness
	 	 	84	 
	SECTION 10.18 Payments for Consent
	 	 	85	 
	SECTION 10.19 Existence of Corporate Co-Issuer
	 	 	85	 
	SECTION 10.20 Designation of Restricted and Unrestricted Subsidiaries
	 	 	85	 
	SECTION 10.21 Calculation of Original Issue Discount
	 	 	86	 
	 
	 	 	 	 
	ARTICLE XI Redemption of Notes
	 	 	86	 
	 
	 	 	 	 
	SECTION 11.01 Applicability of Article
	 	 	86	 

iii 

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 11.02 Election to Redeem; Notice to Trustee
	 	 	86	 
	SECTION 11.03 Selection by Trustee of Notes to be Redeemed
	 	 	86	 
	SECTION 11.04 Notice of Redemption
	 	 	87	 
	SECTION 11.05 Deposit of Redemption Price
	 	 	88	 
	SECTION 11.06 Notes Payable on Redemption Date
	 	 	88	 
	SECTION 11.07 Notes Redeemed in Part
	 	 	88	 
	SECTION 11.08 Optional Redemption
	 	 	88	 
	SECTION 11.09 Mandatory Redemption
	 	 	89	 
	SECTION 11.10 Offer to Purchase by Application of Excess Proceeds
	 	 	89	 
	 
	 	 	 	 
	ARTICLE XII Subsidiary Guarantees
	 	 	91	 
	 
	 	 	 	 
	SECTION 12.01 Guarantee
	 	 	91	 
	SECTION 12.02 Limitation on Guarantor Liability
	 	 	93	 
	SECTION 12.03 Execution and Delivery of Subsidiary Guarantee
	 	 	93	 
	SECTION 12.04 Guarantors May Consolidate, etc., on Certain Terms
	 	 	94	 
	SECTION 12.05 Releases
	 	 	94	 
	 
	 	 	 	 
	ARTICLE
XIII Legal Defeasance and Covenant Defeasance
	 	 	95	 
	 
	 	 	 	 
	SECTION 13.01 Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	95	 
	SECTION 13.02 Legal Defeasance and Discharge
	 	 	95	 
	SECTION 13.03 Covenant Defeasance
	 	 	96	 
	SECTION 13.04 Conditions to Legal or Covenant Defeasance
	 	 	96	 
	SECTION 13.05 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	 	 	98	 
	SECTION 13.06 Repayment to Suburban Propane
	 	 	98	 
	SECTION 13.07 Reinstatement
	 	 	99	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A            Form of Global Notes
	 	 	A-1	 
	 
	 	 	 	 
	EXHIBIT B            Form of Subsidiary Guarantee
	 	 	B-1	 
	 
	 	 	 	 
	EXHIBIT C            Form of Supplemental Indenture to be delivered by Guarantors
	 	 	C-1	 

iv 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of March 23, 2010 (the “Supplemental
Indenture”), among SUBURBAN PROPANE PARTNERS, L.P., a Delaware limited partnership
(“Suburban Propane”), SUBURBAN ENERGY FINANCE CORP., a Delaware corporation (“Finance
Corp.” and, together with Suburban Propane, the “Issuers”) and THE BANK OF NEW YORK
MELLON, a New York banking corporation, as Trustee (herein called the “Trustee”) under the
Indenture dated as of March 23, 2010 among the Issuers and the Trustee (the “Base
Indenture” and, as amended and supplemented by this Supplemental Indenture, the
“Indenture”).

     RECITALS OF THE ISSUERS:

     The Issuers have duly authorized, executed and delivered the Base Indenture to provide for the
issuance from time to time of the Issuers’ debentures, notes or other evidences of indebtedness
(herein called the “Securities”), to be issued in one or more series.

     Section 9.01(vi) of the Base Indenture provides, among other things, that the Issuers and the
Trustee may enter into indentures supplemental to the Base Indenture, without the consent of any
Holders of Notes, to establish the form or terms of any Note as permitted by Section 2.02 of the
Base Indenture.

     Pursuant to Section 2.02 of the Base Indenture, the Issuers desire to execute this
Supplemental Indenture to establish the form and terms, and to provide for the issuance, of a
series of senior notes designated as its 7-3/8% Senior Notes due 2020 in an aggregate principal
amount of $250,000,000 (the “Initial Notes”).

     From time to time subsequent to the Issue Date, the Issuers may, if permitted to do so
pursuant to the terms of the Indenture, the Initial Notes and the terms of its other indebtedness
existing on such future date, issue additional senior notes of the same series as the Initial 2020
Notes in accordance with this Supplemental Indenture (the “Additional Notes” and, together
with the Initial Notes, the “Notes”), pursuant to this Supplemental Indenture.

     This Supplemental Indenture is subject to the provisions of the Trust Indenture Act of 1939,
as amended, that are required to be a part of this Supplemental Indenture and shall, to the extent
applicable, be governed by such provisions.

     All things necessary have been done to make the Notes, when executed by the Issuers and
authenticated and delivered hereunder and duly issued by the Issuers, the valid obligations of the
Issuers.

     All things necessary to make this Supplemental Indenture a valid agreement of each of the
Issuers in accordance with its terms have been done.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes, as
follows:

 

 

ARTICLE I

Application of Supplemental Indenture and Creation of the Notes

     SECTION 1.01 Application of This Supplemental Indenture.

     Notwithstanding any other provision of this Supplemental Indenture, the provisions of this
Supplemental Indenture, including as provided in Section 1.02 below, are expressly and solely for
the benefit of the Holders of the Notes and shall not apply to any other series of Securities that
may be issued hereafter under the Base Indenture. The Notes constitute a series of Securities (as
defined in the Base Indenture) as provided in Section 2.01 of the Base Indenture. Unless otherwise
expressly specified, references in this Supplemental Indenture to specific Article numbers or
Section numbers refer to Articles and Sections contained in this Supplemental Indenture, and not
the Base Indenture or any other document.

     SECTION 1.02 Effect of Supplemental Indenture.

     With respect to the Notes only, the Base Indenture shall be supplemented and amended pursuant
to Section 9.01 thereof to establish the form and terms of the Notes as set forth in this
Supplemental Indenture, including as follows:

     (a) Definitions and Provisions of General Application. The definitions and provisions
of general application set forth in Article I of the Base Indenture are deleted and replaced in
their entirety by the provisions of Article II of this Supplemental Indenture;

     (b) Issuance of Notes and the Notes. The provisions of Articles II and III of the Base
Indenture are deleted and replaced in their entirety by the provisions of Article III of this
Supplemental Indenture;

     (c) Satisfaction and Discharge. The provisions of Article IV of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article IV of this Supplemental
Indenture;

     (d) Defaults and Remedies. The provisions of Article V of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article V of this Supplemental
Indenture;

     (e) The Trustee. The provisions of Article VI of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article VI of this Supplemental Indenture;

     (f) Holders’ Lists and Reports by Trustee and the Issuers. The provisions of Article
VII of the Base Indenture are deleted and replaced in their entirety by Article VII of this
Supplemental Indenture;

     (g) Successors. The provisions of Article VIII of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article VIII of this Supplemental Indenture;

2

 

     (h) Supplemental Indentures. The provisions of Article IX of the Base Indenture are
deleted and replaced in their entirety by the provisions of Article IX of this Supplemental
Indenture;

     (i) Covenants. The provisions of Article X of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article X of this Supplemental Indenture;

     (j) Redemption. The provisions of Article XI of the Base Indenture are deleted and
replaced in their entirety by the provisions of Article XI of this Supplemental Indenture; and

     (k) Legal Defeasance and Covenant Defeasance. The provisions of Article XII of the
Base Indenture are deleted and replaced in their entirety by the provisions of Article XIII of this
Supplemental Indenture.

     To the extent that the provisions of this Supplemental Indenture (including those referred to
in clauses (a) through (k) above) conflict with any provision of the Base Indenture, the provisions
of this Supplemental Indenture shall govern and be controlling, solely with respect to the Notes.

ARTICLE II

Definitions and Other Provisions of General Application

     SECTION 2.01 Definitions. For all purposes of this Supplemental Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

     (a) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

     (b) all other terms used herein which are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

     (c) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted in
the United States of America at the date of such computation; and

     (d) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to
this Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision. Certain terms, used principally within an Article of this Supplemental Indenture, may
be defined in that Article.

     “Act”, when used with respect to any Holder, has the meaning specified in Section
2.04.

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Subsidiary of such specified Person, whether or not such

3

 

Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

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

     “Additional Notes” has the meaning stated in the fourth recital of this Supplemental
Indenture.

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

     “Affiliate Transaction” has the meaning stated in Section 10.12(a).

     “Applicable Premium” means, with respect to any Note on any applicable Redemption
Date, the greater of:

(1) 1.0% of the then outstanding principal amount of the Note (expressed in
dollars); and

(2) the excess of (expressed in dollars):

     (a) the present value at such Redemption Date of (i) the Redemption Price of
the Note at March 15, 2015 (such Redemption Price being the product of the
outstanding principal amount of the Note and the percentage as set forth in the
table appearing under Section 11.08(b)) plus (ii) all required interest payments due
on the Note from and after such Redemption Date through March 15, 2015 (excluding
accrued but unpaid interest), computed using a discount rate equal to the Treasury
Rate as of such Redemption Date plus 50 basis points; over

     (b) the then outstanding principal amount of the Note.

     “applicants” has the meaning specified in Section 7.02(b).

     “Asset Acquisition” means the following:

     (1) an Investment by Suburban Propane or any Restricted Subsidiary of Suburban Propane
in any other Person pursuant to which the Person shall become a

4

 

Restricted Subsidiary of
Suburban Propane, or shall be merged with or into Suburban Propane or any Restricted
Subsidiary of Suburban Propane;

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

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

     “Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any assets or rights;
provided, that the sale, conveyance or other disposition of all or substantially all
of the assets of Suburban Propane and its Restricted Subsidiaries taken as a whole will be
governed by Sections 8.01 and 10.16 and not by the provisions of Section 10.11; and

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

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

     (1) any single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $15.0 million;

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

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

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

     (5) the good faith surrender or waiver of contract rights or the settlement, release or
surrender of claims of any kind, not to exceed the Fair Market Value of $15.0 million in the
aggregate from the date of this Supplemental Indenture;

     (6) the sale or other disposition of cash or Cash Equivalents or the termination or
close-out of Hedging Obligations; and

     (7) a Restricted Payment that does not violate the covenant described in Section 10.08
or a Permitted Investment.

5

 

     “Asset Sale Offer” has the meaning specified in Section 11.10.

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

     “Authenticating Agent” means any Person appointed by the Issuers pursuant to Section
6.13 and authorized to act on behalf of the Trustee to authenticate the Notes.

     “Available Cash” as to any quarter means:

     (1) the sum of:

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

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

     (2) less the sum of:

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

     (b) any cash reserves established with respect to such quarter, and any
increase with respect to such quarter in a cash reserve previously established
pursuant to this clause (2)(b) from the level of such reserve at the end of the
prior quarter, in such amounts as the general partner of Suburban Propane determines
in its reasonable discretion to be necessary or appropriate (i) to provide for the
proper conduct of the business of Suburban Propane or the Operating Partnership
(including, without limitation, reserves for future capital expenditures), (ii) to
provide funds for distributions with respect to Capital Stock of Suburban
Propane in respect of any one or more of the next four quarters or (iii) because the

6

 

distribution of such amounts would be prohibited by applicable law or by any loan
agreement, security agreement, mortgage, debt instrument or other agreement or
obligation to which Suburban Propane is a party or by which it is bound or its
assets are subject;

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

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

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

     “Base Indenture” has the meaning specified in the first paragraph of this Supplemental
Indenture.

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

     “Board of Supervisors” means:

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

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

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

7

 

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

     “Board Resolution” means a copy of a resolution certified by an officer of Suburban
Propane on behalf of the Issuers to have been duly adopted by the Board of Supervisors of Suburban
Propane and to be in full force and effect on the date of such certification.

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

     (1) 90% of the face amount of all accounts receivable (net of reserves) owned by
Suburban Propane and its Restricted Subsidiaries as of the end of the most recent fiscal
quarter preceding such date that were not more than 60 days past due; plus

     (2) 70% of the book value of all inventory (net of reserves) owned by Suburban Propane
and its Restricted Subsidiaries as of the end of the most recent fiscal quarter preceding
such date.

     “Business Day” means a day that is not a Saturday or a Sunday, or a day on which banks
or trust companies in New York City are authorized or obligated by law, regulation or executive
order to be closed.

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

     “Capital Stock” means:

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

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

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

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

     “Cash Equivalents” means:

     (1) United States dollars;

8

 

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

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

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

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

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

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

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

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

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

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

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all

9

 

or substantially all of the properties or assets of Suburban Propane and its
Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d) of the
Exchange Act) other than a Principal or a Related Party of a Principal, which occurrence is
followed by a Rating Decline within 90 days of the consummation of such transaction;

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

     (3) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as that term is used in Section
13(d) of the Exchange Act), other than the Principals and their Related Parties, becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the
General Partner, measured by voting power rather than number of units or shares, which
occurrence is followed by a Rating Decline within 90 days of the consummation of such
transaction;

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

     (5) Suburban Propane consolidates with, or merges with or into, any Person (other than
the Principals and their Related Parties), or any Person (other than the Principals and
their Related Parties) consolidates with, or merges with or into, Suburban Propane, other
than any such transaction where the Voting Stock of Suburban Propane outstanding immediately
prior to such transaction constitutes, or is converted into or exchanged for Voting Stock
(other than Disqualified Stock) of the surviving or transferee Person constituting, a
majority of the outstanding shares of such Voting Stock of such surviving or transferee
Person (immediately after giving effect to such issuance), which occurrence is followed by a
Rating Decline within 90 days of the consummation of such transaction;

     (6) the first day on which a majority of the members of the Board of Supervisors of
Suburban Propane are not Continuing Directors, which occurrence is followed by a Rating
Decline within 90 days of the consummation of such transaction; and

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

     “Change of Control Offer” has the meaning specified in Section 10.16(a).

     “Change of Control Payment” has the meaning specified in Section 10.16(a).

     “Change of Control Payment Date” has the meaning specified in Section 10.16(a)(2).

     “Commission” means the Securities and Exchange Commission.

     “Common Depositary” has the meaning specified in Section 3.03(c).

10

 

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

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

     (1) Consolidated Net Income;

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

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

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

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

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

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

11

 

Asset Sale or Asset Acquisition occurred on the first day of the Reference Period;
provided, however, that:

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

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

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

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

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

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

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

     (1) Consolidated Interest Expense; and

     (2) the product of:

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

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

     “Consolidated Income Tax Expense” means, with respect to Suburban Propane and its
Restricted Subsidiaries for any period, the provision for federal, state, local and foreign income

12

 

taxes of Suburban Propane and its Restricted Subsidiaries for the period as determined on a
consolidated basis in accordance with GAAP.

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

     (1) any amortization of debt discount;

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

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

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

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

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

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

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

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

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

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

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

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

13

 

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

     “Consolidated Non-Cash Charges” means, with respect to Suburban Propane and its
Restricted Subsidiaries for any period, the sum, without duplication, of: (1) depreciation, (2)
amortization, (3) non-cash employee compensation expenses and (4) any other non-cash charges, in
each case to the extent that the Consolidated Net Income of Suburban Propane for that period was
reduced thereby.

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

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

     (2) was elected by the unitholders of Suburban Propane in accordance with the
provisions of Suburban Propane’s partnership agreement as in effect on the date of this
Supplemental Indenture; or

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

     “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be principally administered, which office at the
date hereof is 101 Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate
Trust Administration, or such other address as the Trustee may designate from time to time by
notice to the Holders and the Issuers, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from time to time by notice
to the Holders and the Issuers), except that with respect to the presentation of Notes for payment
or for registration of transfer and exchange, such term shall mean the office or the agency of the
Trustee designated for such purpose.

     “Covenant Defeasance” has the meaning specified in Section 13.03.

     “Credit Agreement” means that certain Credit Agreement, dated as of June 26, 2009,
between the Operating Partnership, as borrower, Suburban Propane, as parent, and the lenders or
agents party thereto from time to time, as amended, restated, modified, renewed, refunded, replaced
or refinanced (including by means of sales of debt securities to investors) in whole or in part
from time to time.

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

14

 

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

     “Defaulted Interest” has the meaning specified in Section 3.06(b).

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of
any security into which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the
option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91
days after the date on which the Notes mature. Notwithstanding the preceding sentence, (1) any
Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital
Stock have the right to require Suburban Propane to repurchase such Capital Stock upon the
occurrence of a change of control or an asset sale will not constitute Disqualified Stock if the
terms of such Capital Stock provide that Suburban Propane may not repurchase or redeem any such
Capital Stock pursuant to such provisions unless such repurchase or redemption complies with
Section 10.08 hereof and (2) any Capital Stock issued pursuant to any plan for the benefit of one
or more employees will not constitute Disqualified Stock solely because it may be required to be
repurchased by Suburban Propane in order to satisfy applicable contractual, statutory or regulatory
obligations. The amount of Disqualified Stock deemed to be outstanding at any time for purposes of
this Supplemental Indenture will be the maximum amount that Suburban Propane and its Restricted
Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.

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

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

     “Euroclear” means the operator of the Euroclear System.

     “Event of Default” has the meaning specified in Section 5.01.

     “Excess Proceeds” has the meaning specified in Section 10.11.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excess Proceeds” has the meaning specified in Section 10.11(b).

     “Exchange Date” has the meaning specified in Section 3.03(c).

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

15

 

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

     “Finance Corp.” means the Person named as “Finance Corp.” in the first paragraph of
this Supplemental Indenture, and any and all successors thereto.

     “Four Quarter Period” has the meaning specified in the definition of “Consolidated
Fixed Charge Coverage Ratio.”

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which is in effect as of the date of this Supplemental Indenture.

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

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

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

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

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

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

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

16

 

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

(3) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates, commodity prices, weather or other risks
associated with the business or operations of such Person.

     “Holder” or “holder” means the Person in whose name at the time a particular
Note is registered in the Note Register.

     “incur” has the meaning set forth in Section 10.10(a).

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

     (1) in respect of borrowed money;

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

     (3) in respect of banker’s acceptances;

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

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

     (6) representing any Hedging Obligations,

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

     “Indenture” has the meaning specified in the first paragraph of this Supplemental
Indenture.

     “Initial Notes” has the meaning specified in the third recital of this Supplemental
Indenture.

     “interest”, when used with respect to an Original Issue Discount Note which by its
terms bears interest only after Maturity, means interest payable after Maturity.

17

 

     “Interest Payment Date”, when used with respect to any Note, means the Stated Maturity
of an installment of interest on such Note.

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

     “Investment Grade Rating” means a rating of Baa3 or better by Moody’s and BBB- or
better by S&P (or its equivalent under any successor rating categories of S&P) (or, in each case,
if such Rating Agency ceases to rate the Notes for reasons outside of the control of Suburban
Propane, the equivalent investment grade credit rating from any Rating Agency selected by Suburban
Propane as a replacement Rating Agency).

     “Investments” means, with respect to any Person, all direct or indirect investments by
such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or
other obligations but excluding Guarantees permitted to be incurred pursuant to Section
10.10(b)(9)), advances or capital contributions (excluding commission, travel and similar advances
to officers and employees made in the ordinary course of business), purchases or other acquisitions
for consideration of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.
If Suburban Propane or any Restricted Subsidiary of Suburban Propane sells or otherwise disposes
of any Equity Interests of any direct or indirect Restricted Subsidiary of Suburban Propane such
that, after giving effect to any such sale or disposition, such Person is no longer a Restricted
Subsidiary of Suburban Propane, Suburban Propane will be deemed to have made an investment on the
date of any such sale or disposition equal to the Fair Market Value of Suburban Propane’s
Investments in such Restricted Subsidiary that were not sold or disposed of in an amount determined
as provided in the final paragraph of Section 10.08(b). The acquisition by Suburban Propane or any
Restricted Subsidiary of Suburban Propane of a Person that holds an Investment in a third Person
will be deemed to be an Investment by Suburban Propane or such Restricted Subsidiary in such third
Person in an amount equal to the Fair Market Value of the Investments held by the acquired Person
in such third Person in an amount determined as provided in the final paragraph of Section
10.08(b). Except as otherwise provided in this Supplemental Indenture, the amount of an Investment
will be determined at the time the Investment is made and without giving effect to subsequent
changes in value.

     “Issuers” has the meaning stated in the first paragraph of this Supplemental
Indenture.

     “Issuers’ Request” or “Issuers’ Order” means a written request or order signed
in the name of the Issuers by one of the Officers of each of the Issuers and delivered to the
Trustee.

     “Legal Defeasance” has the meaning specified in Section 13.02.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or

18

 

otherwise perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other agreement to sell or give
a security interest in and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

     “Maturity”, when used with respect to the Note, means the date on which the principal
of the Note or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Moody’s” means Moody’s Investors Service, Inc.

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

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither Suburban Propane nor any of its Restricted Subsidiaries (a)
provides credit support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or
otherwise, or (c) constitutes the lender;

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

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

     “Note Register” has the meaning specified in Section 3.04(a).

     “Note Registrar” means the Person appointed as the initial Note Registrar in Section
3.04(a) or any Person appointed by the Issuers as a successor or replacement Note Registrar.

19

 

     “Notes” has the meaning stated in the fourth recital of this Supplemental Indenture
and more particularly means any Notes authenticated and delivered under this Supplemental
Indenture.

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

     “Offer Amount” has the meaning stated in Section 11.10.

     “Offer Period” has the meaning stated in Section 11.10.

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

     “Officers’ Certificate” means a certificate signed on behalf of the Issuers by two
Officers of Suburban Propane, one of whom must be the principal executive officer, the principal
financial officer, the treasurer or the principal accounting officer of Suburban Propane, and
delivered to the Trustee. Each such Officers’ Certificate shall contain the statements provided in
Section 2.02 or Section 3.11, as applicable, if and to the extent required by the provisions of
such Sections.

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

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an
employee of Suburban Propane or any Subsidiary of Suburban Propane and who shall be reasonably
acceptable to the Trustee. Each Opinion of Counsel shall contain the statements provided in
Section 2.02 or Section 3.11, as applicable, if and to the extent required by the provisions of
such Sections.

     “Original Issue Discount Note” means any Note which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.02.

     “Outstanding” or “outstanding”, when used with respect to the Note, means, as
of the date of determination, all Notes theretofore authenticated and delivered under this
Supplemental Indenture, except:

     (i) Notes theretofore cancelled by the Trustee or delivered or deemed delivered to the
Trustee for cancellation;

     (ii) Notes for whose payment or redemption money in the necessary amount and in the
required currency or currency unit has been theretofore deposited with the Trustee or any
Paying Agent (other than the Issuers) in trust or set aside and segregated in trust by the
Issuers (if the Issuers shall act as their own Paying Agent) for the Holders of

20

 

such Notes;
provided, that, if such Notes are to be redeemed, notice of such redemption has been
duly given pursuant to this Supplemental Indenture or provision therefor satisfactory to the
Trustee has been made; and

     (iii) Notes which have been paid pursuant to Article IV or in exchange for or in lieu
of which other Notes have been authenticated and delivered pursuant to this Supplemental
Indenture, other than any such Notes in respect of which there shall have been presented to
the Trustee proof satisfactory to it that such Notes are held by a protected purchaser (as
defined in section 8-303 of the New York Uniform Commercial Code as in effect on the date
hereof, and any successor thereto or amendment thereof) in whose hands such Notes are valid
obligations of the Issuers;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, (i) the principal amount of an Original Issue Discount Note
that shall be deemed to be Outstanding for such purposes shall be the amount of the principal
thereof that would be due and payable as of the date of such determination upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.02, and (ii) Notes owned by the Issuers
or any other obligor upon the Notes or any Affiliate of the Issuers or of such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes which a Responsible Trust Officer of the Trustee actually knows to be
so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Notes and that the pledgees are not the Issuers or any other
obligor upon the Notes or any Affiliate of the Issuers or of such other obligor.

     “Paying Agent” means the Trustee or any other Person authorized by the Issuers to pay
the principal of (and premium, if any) or interest, if any, on any Notes on behalf of the Issuers.

     “Permitted Banks” has the meaning specified in the definition of “Cash Equivalents.”

     “Permitted Business” means any business that is the same as or related, ancillary or
complementary to any of the businesses of Suburban Propane or any of its Restricted Subsidiaries as
conducted as of the date of this Supplemental Indenture or is otherwise related to the energy
business.

     “Permitted Debt” has the meaning specified in Section 10.10(b).

     “Permitted Investments” means:

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

     (2) any Investment in Cash Equivalents;

21

 

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

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

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

     (4) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 10.11;

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

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

     (7) Investments represented by non-speculative Hedging Obligations;

     (8) loans or advances to employees made in the ordinary course of business of Suburban
Propane or a Restricted Subsidiary of Suburban Propane;

     (9) repurchases of the Notes; and

     (10) other Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this clause (10)
that are at the time outstanding, not to exceed $60.0 million.

     “Permitted Liens” means:

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

     (2) Liens in favor of the Issuers;

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

22

 

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

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

     (6) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 10.10(b)(4) covering only the assets acquired with or financed by such Indebtedness;

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

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

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

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

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

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

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

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

     (13) Liens on the equity interests of Unrestricted Subsidiaries or joint ventures
granted to secure indebtedness incurred by such Unrestricted Subsidiaries or joint ventures;
and

23

 

     (14) Liens on pipelines or pipeline facilities that arise by operation of law;

     (15) Liens securing Hedging Obligations entered into for bona fide hedging purposes and
not for the purpose of speculation;

     (16) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation, other than any
Lien imposed by the United States Employee Retirement Income Security Act of 1974, as
amended;

     (17) deposits to secure the performance of bids, trade contracts and leases (other than
Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

     (18) (i) any interest or title of a lessor or sublessor under any lease not prohibited
by this Supplemental Indenture, (ii) any Lien or restriction to which the interest or title
of such lessor or sublessor may be subject, or (iii) any subordination of the interest of
the lessee or sublessee under such lease to any Lien or restriction referred to in the
preceding clause (ii), so long as the holder of such Lien or restriction agrees to recognize
the rights of such lessee or sublessee under such lease;

     (19) licenses, sublicenses, leases or subleases granted to third parties in the
ordinary course of business not interfering in any material respect with the ordinary
conduct of the business of Suburban Propane or any of its Subsidiaries;

     (20) any zoning or similar law or right reserved to or vested in any governmental
office or agency to control or regulate the use of any real property;

     (21) Liens securing judgments for the payment of money not constituting an Event of
Default;

     (22) precautionary UCC-1 financing statement filings by lessors in respect of operating
leases, provided that the obligations under such leases do not constitute Indebtedness; and

     (23) Liens incurred in the ordinary course of business of Suburban Propane with respect
to obligations that do not exceed $15.0 million at any one time outstanding.

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

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

24

 

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

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

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

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

     “Place of Payment”, when used with respect to the Notes, means the place or places
where the principal of (and premium, if any) and interest, if any, on the Notes are payable as
specified in accordance with Section 3.06.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or
a portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 3.05 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Note.

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

     “Principals” means the Persons owning the Capital Stock of the General Partner as of
the date of this Supplemental Indenture.

     “Purchase Date” has the meaning specified in Section 11.10.

     “Rating Agency” means (1) each of Moody’s and S&P and (2) if Moody’s or S&P ceases to
rate the Notes for reasons outside of the control of Suburban Propane, a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act selected by Suburban Propane as a replacement agency for Moody’s or S&P, as the case may be.

25

 

     “Rating Category” means:

     (1) with respect to S&P, any of the following categories: AAA, AA, A, BBB, BB, B, CCC, CC, C
and D (or equivalent successor categories); and

     (2) with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa, Ba, B, Caa, Ca,
C and D (or equivalent successor categories).

     “Rating Decline” means a decrease in the rating of the Notes by either Moody’s or S&P
by one or more gradations (including gradations within Rating Categories as well as between Rating
Categories). In determining whether the rating of the Notes has decreased by one or more
gradations, gradations within Rating Categories, namely + or – for S&P, and 1, 2, and 3 for
Moody’s, will be taken into account; for example, in the case of S&P, a rating decline either from
BB+ to BB or BB- to B+ will constitute a decrease of one gradation.

     “Redemption Date”, when used with respect to any Note to be redeemed, means the date
fixed for such redemption by or pursuant to this Supplemental Indenture.

     “Redemption Price”, when used with respect to any Note to be redeemed, means the
price, in the currency or currency unit in which such Note is payable, at which it is to be
redeemed pursuant to this Supplemental Indenture.

     “Reference Period” has the meaning specified in the definition of “Consolidated Fixed
Charge Coverage Ratio.”

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Notes means the date specified for that purpose as contemplated by Section 3.01, which date shall
be, unless otherwise specified pursuant to Section 3.01, the fifteenth day preceding such Interest
Payment Date, whether or not such day shall be a Business Day.

     “Related Party” means:

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

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

     “Reporting Default” means a Default described in Section 5.01(c).

     “Responsible Trust Officer”, when used with respect to the Trustee, means any officer
within the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the Persons who at the
time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of

26

 

such person’s knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Supplemental Indenture.

     “Restricted Investment” means an Investment other than a Permitted Investment.

     “Restricted Payments” has the meaning specified in Section 10.08(a)(4).

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

     “Reversion Date” has the meaning specified in Section 10.07(a).

     “S&P” means Standard & Poor’s Ratings Group.

     “Securities” has the meaning stated in the first recital of this Supplemental
Indenture.

     “Securities Act” means the Securities Act of 1933, as amended.

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

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 3.06(b).

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

     “Subsidiary” means, with respect to any specified Person:

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

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

27

 

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

     “Suburban Propane” means the Person named as “Suburban Propane” in the first paragraph
of this Supplemental Indenture, and any and all successors thereto.

     “Supplemental Indenture” means this Supplemental Indenture as originally executed on
the date hereof or as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the
terms of the Notes established as contemplated by Section 3.11 hereunder.

     “Suspension Period” has the meaning specified in Section 10.07(a).

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

     “Transaction Date” has the meaning specified in the definition of “Consolidated Fixed
Charge Coverage Ratio.”

     “Treasury Rate” means with respect to the Notes, as of the applicable redemption date,
the yield to maturity as of such redemption date of United States Treasury securities with a
constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release
H.15 (519) that has become publicly available at least two business days prior to such redemption
date (or, if such Statistical Release is no longer published, any publicly available source of
similar market data)) most nearly equal to the period from such redemption date to March 15, 2015;
provided, however, that if the period from such redemption date to March 15, 2015
is less than one year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year will be used.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the applicable provisions
of this Supplemental Indenture, and thereafter “Trustee” shall mean or include each Person who is
then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used
with respect to the Notes shall mean the Trustee with respect to the Notes.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended by the Trust
Indenture Reform Act of 1990, and as in force at the date as of which this Supplemental Indenture
was executed, except as provided in Section 9.03.

     “United States” means the United States of America (including the states and the
District of Columbia), its territories, its possessions and other areas subject to its
jurisdiction.

     “Unrestricted Subsidiary” means any Subsidiary of Suburban Propane (other than Finance
Corp., the Operating Partnership or any successor to any of them) that is designated by

28

 

the Board
of Supervisors as an Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent
that such Subsidiary:

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

     (2) except as permitted by Section 10.12, is not party to any agreement, contract,
arrangement or understanding with Suburban Propane or any Restricted Subsidiary of Suburban
Propane unless the terms of any such agreement, contract, arrangement or understanding are
no less favorable to Suburban Propane or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of Suburban Propane;

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

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

     “U.S. Government Obligations” means securities that are (i) direct obligations of the
United States of America for the payment of which its full faith and credit is pledged or (ii)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either case under clause (i)
or (ii), are not callable or redeemable at the option of the issuer thereof, and will also include
a depository receipt issued by a bank or trust company as custodian with respect to any such U.S.
Government Obligation or a specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository receipt, provided
that (except as required by law) such custodian is not authorized to make any deduction from the
amount payable to the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of interest on or principal of
the U.S. Government Obligation evidenced by such depository receipt.

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

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

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

29

 

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

     “Wholly Owned Restricted Subsidiary” means the Operating Partnership or any Subsidiary
of Suburban Propane of which 100% of the outstanding Capital Stock is owned by
Suburban Propane or by one or more Wholly Owned Restricted Subsidiaries of Suburban Propane or
by Suburban Propane and one or more Wholly Owned Restricted Subsidiaries of Suburban Propane. For
purposes of this definition, any directors’ qualifying shares or investments by foreign nationals
mandated by applicable law shall be disregarded in determining the ownership of a Subsidiary.

     SECTION 2.02 Compliance Certificates and Opinions.
 (a) Upon any application or request by the Issuers to the Trustee to take any action under
any provision of this Supplemental Indenture, the Issuers shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this Supplemental
Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have been complied with,
except that in the case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Supplemental Indenture relating to such
particular application or request, no additional certificate or opinion need be furnished.

     (b) Unless expressly otherwise specified with respect to any certificate or opinion provided
for in this Supplemental Indenture, every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Supplemental Indenture (other than annual certificates
provided pursuant to Section 10.04) shall include:

     (i) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (iii) a statement that, in the opinion of each such individual, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (iv) a statement as to whether or not, in the opinion of each such individual, such
condition or covenant has been satisfied.

     SECTION
2.03 Form of Documents Delivered to Trustee.
 (a) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only
one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

30

 

     (b) Any certificate or opinion of an officer of Suburban Propane on behalf of the Issuers may
be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to the matters upon
which his certificate or opinion is based are erroneous. Any such certificate or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of Suburban Propane on behalf of the Issuers stating
that the information with respect to such factual matters is in the possession of Suburban Propane,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

     (c) Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Supplemental
Indenture, they may, but need not, be consolidated and form one instrument.

     SECTION 2.04 Acts of Holders.

 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Supplemental Indenture to be given or taken by Holders of Notes may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by proxies duly appointed in writing. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are delivered to the Trustee
and, where it is hereby expressly required, to the Issuers. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such proxy shall be sufficient for any purpose of this Supplemental
Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and the Issuers, if made
in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any reasonable manner which the Trustee deems sufficient. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall
also constitute sufficient proof of his authority.

     (c) The principal amount and serial numbers of Notes held by any Person and the date of
holding the same shall be proved by the Note Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of a
Holder shall bind every future Holder of the same Note and the Holder of every Note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything
done, omitted or suffered to be done by the Trustee or the Issuers in reliance thereon, whether or
not notation of such action is made upon such Note.

     (e) If the Issuers shall solicit from the Holders of Notes any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Issuers may, at their option, by or pursuant
to a Board Resolution, fix in advance a record date for the determination of Holders entitled to
give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Issuers shall have no obligation to do so. If such a record date is fixed, such request,

31

 

demand,
authorization, direction, notice, consent, waiver or other Act may be given before or
after such record date, but only the Holders of record at the close of business on such record
date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Notes have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Notes shall be computed as of such record date; provided, that no such
authorization, agreement or consent by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Supplemental Indenture not
later than six months after the record date.

     SECTION 2.05 Notices, Etc., to Trustee and the Issuers.
 Any request, demand, authorization, direction, notice, consent, waiver or other Act of Holders
or other document provided or permitted by this Supplemental Indenture to be made upon, given or
furnished to, or filed with:

     (a) the Trustee by any Holder or by the Issuers shall be made, given, furnished or filed in
writing (which may be via facsimile) to or with the Trustee at its Corporate Trust Office and
unless otherwise herein expressly provided, any such document shall be deemed to be sufficiently
made, given, furnished or filed upon its receipt by a Responsible Trust Officer of the Trustee, or

     (b) Suburban Propane on behalf of the Issuers by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing
and delivered in person, mailed, first-class postage prepaid, or sent by overnight courier or,
until such time as Suburban Propane shall have notified the Trustee in writing that it shall no
longer accept delivery of notice by telecopy, given by telecopy to Suburban Propane addressed to it
at the address of its principal office specified in the first paragraph of this instrument or at
any other address previously furnished in writing to the Trustee by Suburban Propane, or at its
telecopy number from time to time furnished in writing to the Trustee expressly for purposes of
this Supplemental Indenture, Attention: Legal Department.

     SECTION 2.06 Notice to Holders; Waiver.
 (a) Where this Supplemental Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided or unless otherwise
specified in such Notes) if in writing and delivered in person, mailed, first-class postage prepaid
or sent by overnight courier, to each Holder affected by such event, at his address as it appears
in the Note Register, within the time prescribed for the giving of such notice.

     (b) In case by reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice to Holders of Notes in the manner specified
above, then such notification as shall be made with the approval of the Trustee shall constitute a
sufficient notification for every purpose hereunder.

     (c) In any case where notice to a Holder of Notes is given in any manner specified in
paragraph (a) above, such notice shall be conclusively presumed to have been duly given, whether or
not such Holder receives such notice. In any case where notice to Holders of Notes is given in any
manner specified in paragraph (a) above, neither the failure to deliver, mail or send

32

 

such notice, nor any defect in any notice so mailed or sent, to any particular Holder of a
Note shall affect the sufficiency of such notice with respect to other Holders of Notes given as
provided herein.

     (d) Where this Supplemental Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before or after the event,
and such waiver shall be the equivalent of such notice. Waivers of notice by Holders of Notes
shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

     SECTION 2.07 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with the duties imposed by any of
Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of Section 318(c)
thereof, such imposed duties shall control.

     SECTION 2.08 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 2.09 Successors and Assigns.

     All covenants and agreements in this Supplemental Indenture by the Issuers shall bind their
respective successors and assigns, whether so expressed or not.

     SECTION 2.10 Separability Clause.

     In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     SECTION 2.11 Benefits of Supplemental Indenture.

     Nothing in this Supplemental Indenture or in the Notes, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder and the Holders, any benefit
or any legal or equitable right, remedy or claim under this Supplemental Indenture.

     SECTION 2.12 Governing Law.

     THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     SECTION 2.13 Legal Holidays.

33

 

     Except as otherwise specified as contemplated by Section 3.11, in any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Note shall not be a Business Day at any
Place of Payment, then (notwithstanding any other provision of this Supplemental Indenture or of
such Note) payment of interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment
with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at
the Stated Maturity, as the case may be; provided, that no interest shall accrue for the
period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case
may be, to the next succeeding Business Day at such Place of Payment.

     SECTION 2.14 Language of Notices, etc.

     Any request, demand, authorization, direction, notice, consent or waiver required or permitted
under this Supplemental Indenture shall be in the English language.

     SECTION 2.15 Changes in Exhibits.

     At any time and from time to time, the Issuers may substitute a new form, or add new forms, of
the Exhibits hereto. Such substitution shall be effective upon receipt by the Trustee of such new
form of Exhibit and a Board Resolution or Officers’ Certificate adopting such new form of Exhibit,
and thereafter all references in this Supplemental Indenture to such Exhibit shall be deemed to
refer to such new form of Exhibit.

     SECTION 2.16 Counterparts; Facsimile.

     THIS SUPPLEMENTAL INDENTURE MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS AND BY THE PARTIES
HERETO IN SEPARATE COUNTERPARTS, AND SIGNATURE PAGES MAY BE DELIVERED BY FACSIMILE OR ELECTRONIC
TRANSMISSION, EACH OF WHICH WHEN SO EXECUTED SHALL BE DEEMED TO BE AN ORIGINAL AND ALL OF WHICH
TAKEN TOGETHER SHALL CONSTITUTE ONE AND THE SAME AGREEMENT.

     SECTION 2.17 No Personal Liability of Limited Partners, Officers, Employees and
Unitholders.

     No past, present or future limited partner, officer, employee, incorporator, unitholder,
stockholder or Affiliate of the Issuers, as such, will have any liability for any obligations of
the Issuers under the Notes, this Supplemental Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Notes. The waiver may not be effective to waive liabilities under the federal
securities laws.

     SECTION 2.18 Non-Recourse.

     The Issuers’ obligations under this Supplemental Indenture are payable only out of their cash
flow and assets. The Issuers’ obligations under this Supplemental Indenture are non-

34

 

recourse to
the limited partners of Suburban Propane and are non-recourse to the Operating
Partnership and its Subsidiaries except as set forth in any supplemental indenture hereto and
Article XII. The Trustee has, and each Holder of a Note, by accepting a Note, is deemed to have,
agreed in this Supplemental Indenture that the limited partners as well as the Operating
Partnership and its Subsidiaries will not be liable for any of the Issuers’ obligations under this
Supplemental Indenture.

     SECTION 2.19 Waiver of Jury Trial.

     EACH OF THE ISSUERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 2.20 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

ARTICLE III

The Notes

     SECTION 3.01 Form and Denomination.

 The Notes shall be entitled the “7-3/8% Senior Notes due 2020” in the aggregate principal
amount equal to $250,000,000. The Notes shall be issuable in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. Notes shall be numbered, lettered or otherwise
distinguished in such manner or in accordance with such plan as the officers of the Issuers
executing the same may determine with the approval of the Trustee. Each Note shall bear the
appropriate legends, if any, as required by U.S. Federal tax law and regulations and shall be
initially issuable in global form in the substantially the form provided in Exhibit A
hereto.

     The Notes will mature on March 15, 2020. Interest on the Notes will accrue at the rate of
7-3/8% per annum and will be payable semiannually in cash on each March 15 and September 15,
commencing on September 15, 2010 in the case of the Initial Notes, to the Persons who are
registered Holders of Notes at the close of business on March 1 and September 1 (each, a
“Regular Record Date”) immediately preceding the applicable Interest Payment Date.
Interest on the Notes will accrue from the most recent date to which interest has been paid, or if
no interest has been paid, from and including the date of issuance to but excluding the actual
Interest Payment Date.

35

 

     SECTION 3.02 Execution, Delivery, Dating and Authentication. (a) The Notes shall be executed on behalf of the Issuers by a manual or facsimile signature
of at least one Officer of each of the Issuers. In case any of the above referenced Officers of
the Issuers who shall have signed any of the Notes shall cease to be such officer before the Notes
so signed shall have been authenticated and delivered by the Trustee or disposed of by the Issuers,
such Notes nevertheless may be authenticated and delivered or disposed of as though the person who
signed such Notes had not ceased to be such Officer; and any Notes may be signed on behalf of the
Issuers by such persons as, at the actual date of the execution of such Note, shall be such
Officers of the Issuers, although at the date of the execution of this Supplemental Indenture any
such person was not such Officer.

     (b) At any time and from time to time, the Issuers may deliver the Notes executed by the
Issuers to the Trustee for authentication, together with an Issuers’ Order for the authentication
and delivery of such Notes, and the Trustee in accordance with the Issuers’ Order shall
authenticate and make available for delivery such Notes.

     (c) The Trustee shall not be required to authenticate Notes if the issue of such Notes
pursuant to this Supplemental Indenture will affect the Trustee’s own rights, duties or immunities
under the Notes and this Supplemental Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee, or if the Trustee determines that such action may not lawfully be taken.

     (d) Each Note shall be dated the date of its authentication.

     (e) No Note shall be entitled to any benefit under this Supplemental Indenture or be valid or
obligatory for any purpose unless there appears on such Note a certificate of authentication
substantially in the form provided for below executed by the Trustee by manual signature, and such
certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has
been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Note shall
have been duly authenticated and delivered hereunder but never issued and sold by the Issuers, and
the Issuers shall deliver such Note to the Trustee for cancellation as provided in Section 3.08
together with a written statement (which need not be accompanied by an Opinion of Counsel) stating
that such Note has never been issued and sold by the Issuers, for all purposes of this Supplemental
Indenture such Note shall be deemed never to have been authenticated and delivered hereunder and
shall never be entitled to the benefits of this Supplemental Indenture.

     (f) The Trustee’s certificate of authentication shall be in substantially the following form:

Dated:

     This is one of the Notes referred to in the within-mentioned Supplemental Indenture.

THE BANK OF NEW YORK MELLON,

as Trustee

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

36

 

     SECTION 3.03 Temporary Notes.
 (a) Pending the preparation of definitive Notes, the Issuers may execute, and upon an
Issuers’ Order the Trustee shall authenticate and make available for delivery, temporary Notes
which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Notes in lieu of which they are issued,
in registered form or, if authorized, in bearer form, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such Notes may determine
(but which do not affect the rights, duties or immunities of the Trustee), as evidenced
conclusively by their execution of such Notes. Such temporary Notes may be in global form.

     (b) Except in the case of temporary Notes in global form (which shall be exchanged in
accordance with the provisions of the following paragraphs), if temporary Notes are issued, the
Issuers will cause definitive Notes to be prepared without unreasonable delay. After the
preparation of definitive Notes, the temporary Notes shall be exchangeable for definitive Notes
upon surrender of the temporary Notes at the office or agency of the Issuers maintained pursuant to
Section 10.02 in a Place of Payment for the purpose of exchanges of Notes, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Notes, the Issuers shall
execute and the Trustee shall authenticate and make available for delivery in exchange therefor a
like aggregate principal amount of definitive Notes and of like tenor or authorized denominations.

     (c) Without unnecessary delay but in any event not later than the date specified in, or
determined pursuant to the terms of, any such temporary global Note (the “Exchange Date”),
the Issuers shall deliver to the Trustee definitive Notes, in aggregate principal amount equal to
the principal amount of such temporary global Note, executed by the Issuers. On or after the
Exchange Date such temporary global Note shall be surrendered by the common depositary for the
benefit of Euroclear and Clearstream, Luxembourg (the “Common Depositary”) to the Trustee,
as the Issuers’ agent for such purpose, to be exchanged, in whole or from time to time in part, for
definitive Notes without charge and the Trustee shall authenticate and make available for delivery,
in exchange for each portion of such temporary global Note, an equal aggregate principal amount of
definitive Notes of authorized denominations and of like tenor as the portion of such temporary
global Note to be exchanged. The definitive Notes to be delivered in exchange for any such
temporary global Note shall be in bearer form, registered form, definitive global form or any
combination thereof, as may be specified by Section 3.11, and, if any combination thereof is so
specified, as requested by the beneficial owner thereof.

     SECTION 3.04 Registration, Registration of Transfer and Exchange. (a) The Issuers shall cause to be kept at an office or agency to be maintained by the Issuers
in accordance with Section 10.02 a register (being the combined register of the Note Registrar and
all additional transfer agents designated pursuant to Section 10.02 for the purpose of registration
of transfer of Notes and sometimes collectively referred to as the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Issuers shall provide for
the registration of Notes and the registration of transfers of Notes. The Bank of New York Mellon
is hereby appointed the initial Note Registrar, with the Note Register initially to be kept at 101
Barclay

37

 

Street, Floor 8 West, New York, New York 10286. At all reasonable times each register
maintained by the Note Registrar and any additional transfer agents shall be open for inspection by
the Trustee.

     (b) Upon surrender for registration of transfer of any Note at the office or agency of the
Issuers maintained pursuant to Section 10.02 for such purpose in a Place of Payment for such
series, the Issuers shall execute, and the Trustee shall authenticate and make available for
delivery, in the name of the designated transferee or transferees, one or more new Notes of any
authorized denominations and of a like aggregate principal amount and tenor.

     (c) At the option of the Holder, Notes may be exchanged for other Notes of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender of the Notes to be
exchanged at any such office or agency. Whenever any Notes are so surrendered for exchange the
Issuers shall execute, and the Trustee shall authenticate and make available for delivery, the
Notes which the Holder making the exchange is entitled to receive.

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

     (e) Every Note presented or surrendered for registration of transfer or for exchange shall (if
so required by the Issuers or the Trustee or any transfer agent) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the Issuers and the Note
Registrar or any transfer agent duly executed, by the Holder thereof or his attorney duly
authorized in writing.

     (f) No service charge shall be made for any registration of transfer or exchange of Notes, but
the Issuers may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any registration of transfer or exchange of Notes, other
than exchanges pursuant to Section 3.03, 9.05 or 11.07 not involving any transfer.

     (g) The Issuers shall not be required (i) to issue, register the transfer of or exchange Notes
during a period beginning at the opening of business 15 Business Days before any selection of Notes
to be redeemed and ending at the close of business on the day of the mailing of the relevant notice
of redemption, or (ii) to register the transfer of or exchange any Note so selected for redemption,
in whole or in part, except the unredeemed portion of any Note being redeemed in part.

     (h) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Supplemental Indenture or under
applicable law with respect to any transfer of any interest in any Note (including any transfers
between or among beneficial owners of interests in any global Note) other than to require delivery
of such certificates and other documentation or evidence as are expressly required by, and to do so
if and when expressly required by the terms of, this Supplemental Indenture, and to

38

 

examine the
same to determine substantial compliance as to form with the express requirements hereof.

     (i) The Issuers initially appoint The Depositary Trust Company to act as Depositary with
respect to the Notes.

     SECTION 3.05 Mutilated, Destroyed, Lost and Stolen Notes. (a) If any mutilated Note is surrendered to the Trustee, the Issuers shall execute and the
Trustee shall authenticate and make available for delivery in exchange therefor a new Note of the
same series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

     (b) If there shall be delivered to the Issuers and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Note and (ii) such security or indemnity as
may be required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Issuers or the Trustee that such Note has been acquired by a protected
purchaser, the Issuers shall execute and the Trustee shall authenticate and make available for
delivery, in lieu of any such destroyed, lost or stolen Note, a new Note of the same series and of
like tenor and principal amount and bearing a number not contemporaneously outstanding.

     (c) In case any such mutilated, destroyed, lost or stolen Note has become or is about to
become due and payable, the Issuers in its discretion may, instead of issuing a new Note, pay such
Note.

     (d) Upon the issuance of any new Note under this Section, the Issuers may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     (e) Every new Note issued pursuant to this Section in lieu of any mutilated, destroyed, lost
or stolen Note shall constitute an original additional contractual obligation of the Issuers,
whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Supplemental Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     (f) The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated. destroyed, lost
or stolen Notes.

     SECTION 3.06 Payment of Interest; Interest Rights Preserved. (a) Interest on any Note which is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that Note (or one or more
Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest at the office or agency of the Paying Agent maintained for such purpose within the City
and State of New York, or, if a Holder of Notes has given wire transfer instructions to the
Issuers, payment of principal, premium and interest may be made in accordance with those
instructions (the “Place of Payment”); provided, that payment by wire transfer of
immediately available funds will be

39

 

required with respect to principal, premium and interest on all
Notes the
Holders of which will have provided wire transfer instructions to the Issuers or the Paying Agent.
Such payment will be in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

     (b) Any interest on any Note which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Issuers, at its election in each case, as
provided in clause (i) or (ii) below:

     (i) The Issuers may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on a “Special Record Date” for the payment of such Defaulted Interest, which shall
be fixed in the following manner. The Issuers shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed
payment, and at the same time the Issuers shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Issuers of such Special Record Date
and, in the name and at the expense of the Issuers, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Notes at his address as it appears in the
Note Register, not less than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor having been
so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or
their respective Predecessor Notes) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following clause (ii).

     (ii) The Issuers may make payment of any Defaulted Interest on the Notes in any other
lawful manner not inconsistent with the requirements of any securities exchange on which
such Notes may be listed, and upon such notice as may be required by such exchange, if,
after notice given by the Issuers to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section and Section 3.04, each Note delivered
under this Supplemental Indenture upon registration of transfer of or in exchange for or in lieu of
any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Note.

40

 

     SECTION 3.07 Persons Deemed Owners. Prior to due presentment of a Note for registration of transfer, the Issuers, the Trustee and
any agent of the Issuers or the Trustee may treat the Person in whose name such Note is registered
as the owner of such Note for the purpose of receiving payment of principal of (and premium, if
any) and (subject to Sections 3.04, 3.06 and 3.10 and unless otherwise specified as contemplated by
Section 3.11) interest on such Note and for all other purposes whatsoever, whether or not such Note
is overdue, and neither the Issuers, the Trustee nor any agent of the Issuers or the Trustee shall
be affected by notice to the contrary.

     SECTION 3.08 Cancellation. All Notes surrendered for payment, redemption, registration of transfer or exchange or for
credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee. All Notes so delivered shall be promptly cancelled by the Trustee.
The Issuers may at any time deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuers may have acquired in any manner whatsoever,
and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Notes previously authenticated hereunder which the Issuers have not issued and
sold, and all Notes so delivered to the Trustee shall be promptly cancelled by the Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by this Supplemental Indenture. All cancelled Notes held by
the Trustee shall be disposed of in a manner selected by the Trustee unless otherwise directed by
an Issuers’ Order; provided, however, that the Trustee may, but shall not be
required to, destroy such cancelled Notes.

     SECTION 3.09 Computation of Interest. Except as otherwise specified as contemplated by Section 3.11 for the Notes, interest on the
Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

     SECTION 3.10 Notes in Global Form. (a) If Notes are issuable in global form, as contemplated by Section 3.01, such Note shall
represent such of the Outstanding Notes as shall be specified therein and may 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 to reflect exchanges. Any endorsement of a Note in global form to reflect the amount, or
any increase or decrease in the amount, of Outstanding Notes represented thereby shall be made by
the Trustee in such manner and upon instructions given by such Person or Persons as shall be
specified therein or in the Issuers’ Order to be delivered to the Trustee pursuant to Section 3.02
or Section 3.03. Subject to the provisions of Section 3.02 and, if applicable, Section 3.03, the
Trustee shall deliver and redeliver any Note in definitive global bearer form in the manner and
upon written instructions given by the Person or Persons specified therein or in the applicable
Issuers’ Order. If Issuers’ Order pursuant to Section 3.02 or 3.03 has been, or simultaneously is,
delivered, any instructions by the Issuers with respect to endorsement or delivery or redelivery of
a Note in global form shall be in writing but need not comply with Section 2.02 and need not be
accompanied by an Opinion of Counsel.

     (b) The provisions of the last sentence of Section 3.02(e) shall apply to any Note represented
by a Note in global form if such Note was never issued and sold by the Issuers and the Issuers
deliver to the Trustee the Note in global form together with written instructions

41

 

(which need not
comply with Section 2.02 and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Notes represented thereby, together with the written statement
contemplated by the last sentence of Section 3.02(e).

     (c) Notwithstanding the provisions of Section 3.06, unless otherwise specified as contemplated
by Section 3.11, payment of principal of and any premium and any interest on any Note in definitive
global form shall be made to the Person or Persons specified therein.

     (d) Notwithstanding the provisions of Section 3.07 and except as provided in the preceding
paragraph, the Issuers, and any agent of the Issuers may, and the Trustee and any agent of the
Trustee, at the direction of the Issuers, may treat a Person as the Holder of such principal amount
of Outstanding Notes represented by a definitive global Note as shall be specified in a written
statement of the Holder of such definitive global Note or, in the case of a definitive global Note
in bearer form, of Euroclear or Clearstream, Luxembourg which is produced to the Trustee by such
Person; provided, however, that none of the Issuers, the Trustee, the Note
Registrar or any Paying Agent shall have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership interests in a Note in
global form or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.

     SECTION 3.11 Documents Required for Issuance of Notes. The Notes created pursuant to the provisions of this Article III and this Supplemental
Indenture shall be executed by the Issuers and delivered to the Trustee and shall be authenticated
by the Trustee and delivered to, or upon the order of Suburban Propane on behalf of the Issuers
upon receipt by the Trustee of the following:

     (a) A Board Resolution or Board Resolutions authorizing the execution, authentication and
delivery of the Notes, and specifying the terms and conditions of the Notes. If any of the terms of
the Notes are established by action taken pursuant to a Board Resolution or Board Resolutions, an
Officers’ Certificate certifying as to such action also shall be delivered to the Trustee.

     (b) A Board Resolution or Board Resolutions authorizing this Supplemental Indenture in respect
of the Notes and designating the new series to be created and prescribing pursuant to paragraph (a)
above, consistent with the applicable provisions of this Supplemental Indenture, the terms and
provisions relating to the Notes.

     (c) Either (i) a certificate or other official document evidencing the due authorization,
approval or consent of any governmental body or bodies, at the time having jurisdiction in the
premises, together with an Opinion of Counsel that the Trustee is entitled to rely thereon and that
the authorization, approval or consent of no other governmental body is required, or (ii) an
Opinion of Counsel that no authorization, approval or consent of any governmental body is required.

     (d) An Opinion of Counsel which shall state that: (i) the form of the Notes has been
established by this Supplemental Indenture or by or pursuant to a resolution of the Board of
Directors in accordance with Sections 3.01 and 3.11 and in conformity with the provisions of this

42

 

Supplemental Indenture; (ii) the terms of the Notes have been established in accordance with
Section 3.01 and in conformity with the other provisions of this Supplemental Indenture; and (iii)
the Notes, when authenticated and delivered by the Trustee and issued by the Issuers in the manner
and subject to any conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Issuers, enforceable against the Issuers in accordance with
their terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other laws of general applicability relating to or affecting the enforcement of
creditors’ rights generally from time to time in effect, the enforceability of the Issuers’
obligations also being subject to general equity principles (regardless of whether such
enforceability is considered in a proceeding in equity or at law.

     (e) An Officers’ Certificate stating that the Issuers are not in default under this
Supplemental Indenture and that the issuance of the Notes will not result in any breach of any of
the terms, conditions or provisions of, or constitute a default under, the Issuers’ constitutional
documents or any indenture, mortgage, deed of trust or other agreement or instrument to which any
Issuer is a party or by which it is bound, or any order of any court or administrative agency
entered in any proceeding to which any Issuer is a party or by which it may be bound or to which it
may be subject; and that all conditions precedent provided in this Supplemental Indenture relating
to the authentication and delivery of the Notes have been complied with.

     (f) Such other documents as the Trustee may reasonably require.

     SECTION
3.12 CUSIP Numbers. 

     
The Issuers in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if
so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or omission of such numbers.
The Issuers will promptly notify the Trustee in writing of any change in the “CUSIP” numbers.

ARTICLE IV

Satisfaction and Discharge

     SECTION 4.01 Satisfaction and Discharge of Supplemental Indenture in Respect of the
Notes. This Supplemental Indenture shall upon Issuers’ Request cease to be of further effect with
respect to the Notes (except as to any surviving rights of (as applicable) registration of transfer
or exchange of the Notes herein expressly provided for), and the Trustee, at the request and
expense of the Issuers, shall execute proper instruments acknowledging satisfaction and discharge
of this Supplemental Indenture with respect to the Notes, when:

     (a) Either:

     (i) all Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has been

43

 

deposited in trust and
thereafter repaid to the Issuers, have been delivered to the Trustee for cancellation; or

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

     (b) no Default or Event of Default has occurred and is continuing on the date of the deposit
(other than a Default or Event of Default resulting from the borrowing of funds to be applied to
such deposit) and the deposit will not result in a breach or violation of, or constitute a default
under, any other instrument to which the Issuers are a party or by which the Issuers are bound;

     (c) the Issuers have paid or caused to be paid all sums payable by them under this
Supplemental Indenture;

     (d) the Issuers have delivered irrevocable instructions to the Trustee under this Supplemental
Indenture to apply the deposited money toward the payment of the Notes at maturity or the
redemption date, as the case may be; and

     (e) the Issuers have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of the Notes under this Supplemental Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Supplemental Indenture with respect to
the Notes, the obligations of the Issuers to the Trustee under Section 6.07, the obligations of the
Trustee to any Authenticating Agent under Section 6.13 and, if money shall have been deposited with
the Trustee pursuant to subclause (ii) of clause (a) of this Section, the obligations of the
Trustee under Section 4.02 and Section 13.05 shall survive.

     SECTION
4.02 Application of Trust Money. 

     
Subject to the provisions of Section 13.05 hereof, all money deposited with the Trustee
pursuant to Section 4.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Supplemental Indenture, to the payment, either directly or
through any Paying Agent (including Suburban Propane acting as its own Paying Agent) as the Trustee
may determine, to the Persons entitled thereto, of the principal (and premium, if any) and

44

 

interest
for whose payment such money has been deposited with the Trustee; but such money need not be
segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 4.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuers’ and any Guarantor’s obligations under this Supplemental Indenture
and the Notes shall be revived and reinstated pursuant to Section 4.03 hereof as though no deposit
had occurred pursuant to Section 4.01 hereof; provided, that if Suburban Propane has made
any payment of principal of, premium, if any, or interest on any Notes because of the reinstatement
of its obligations, Suburban Propane shall be subrogated to the rights of the Holders of such Notes
to receive such payment from the money or Government Securities held by the Trustee or Paying
Agent.

     Subject to the provisions of Section 13.06, all money deposited with the Trustee pursuant to
Sections 4.01 and 4.03 (and all money received as payment in connection with U.S. Government
Obligations deposited pursuant to Section 4.03) shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Supplemental Indenture, to the payment, either
directly or through any Paying Agent (including the Issuers acting as their own Paying Agent) as
the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any)
and interest, if any, for whose payment such money has been deposited with the Trustee.

     SECTION 4.03 Reinstatement. If the Trustee is unable to apply any money or U.S. Government Obligations in accordance with
Section 4.01 by reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, the
Issuers’ obligations under this Supplemental Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 4.01 until such time as the
Trustee is permitted to apply all such money or U.S. Government Obligations in accordance with
Section 4.02; provided, however, that if the Issuers have made any payment of
interest on or principal of (and premium, if any) on any Notes because of the reinstatement of its
obligations, the Issuers shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money or U.S. Government Obligations held by the Trustee.

ARTICLE V

Defaults and Remedies

     SECTION 5.01 Events of Default.

     Each of the following is an “Event of Default” with respect to the Notes:

     (a) default for 30 days in the payment when due of interest on the Notes;

     (b) default in payment when due of the principal of, or premium, if any, on the Notes;

45

 

     (c) failure by Suburban Propane for 90 days after notice to comply with the provisions under
Section 10.03 hereof;

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

     (e) the failure to pay at final maturity (giving effect to any applicable grace periods and
any extensions thereof) the stated principal amount of any Indebtedness of Suburban Propane or any
Restricted Subsidiary of Suburban Propane, or the acceleration of the final stated maturity of any
such Indebtedness if the aggregate principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness in default for failure to pay principal at final
stated maturity or which has been accelerated, aggregates $15.0 million or more at any time;

     (f) a final judgment or judgments, which is or are non-appealable and non-reviewable or which
has or have not been stayed pending appeal or review or as to which all rights to appeal or review
have expired or been exhausted, shall be rendered against Suburban Propane or any of its Restricted
Subsidiaries; provided, such judgment or judgments requires or require the payment of money
in excess of $15.0 million in the aggregate and is not covered by insurance or discharged or stayed
pending appeal or review within 60 days after entry of such judgment;

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

     (i) commences a voluntary case;

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

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

     (iv) makes a general assignment for the benefit of its creditors; or

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

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

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

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

46

 

of Suburban
Propane, Finance Corp. or any Significant Subsidiary of Suburban Propane; or

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

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

     SECTION 5.02 Acceleration. (a) In the case of an Event of Default specified in clause (g) or (h) of Section 5.01 hereof,
with respect to Suburban Propane, Finance Corp. or any Significant Subsidiary of Suburban Propane,
all Notes will become due and payable immediately without further action or notice. If any other
Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the Notes may declare all the Notes to be due and payable immediately. Upon any such
declaration, the Notes shall become due and payable immediately.

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

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

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

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

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

     (v) in the event of the cure or waiver of an Event of Default of the type described in
clause (g) or (h) of Section 5.01 hereof, if the Trustee shall have received an Officers’
Certificate stating that such Event of Default has been cured or waived.

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

     SECTION
5.03 Other Remedies. 

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

47

 

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

     SECTION 5.04 Waiver of Past Defaults.

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

     SECTION 5.05 Control by Majority.

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

     SECTION 5.06 Limitation on Suits.

     Except as specified in Section 5.07 of this Supplemental Indenture, a Holder may pursue a
remedy with respect to this Supplemental Indenture or the Notes only if:

     (a) the Holder of a Note has previously given to the Trustee written notice that an Event of
Default is continuing;

     (b) Holders of at least 25% in aggregate principal amount of the Notes have requested the
Trustee to pursue the remedy;

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

     (d) the Trustee has not complied with such request within 60 days after receipt thereof and
the offer of security or indemnity; and

     (e) the Holders of a majority in aggregate principal amount of the Notes have not given the
Trustee a direction inconsistent with such request during such 60-day period.

48

 

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

     SECTION 5.07 Rights of Holders of Notes to Receive Payment.

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

     SECTION 5.08 Collection Suit by Trustee.

     If an Event of Default specified in Section 5.01(a) or (b) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against Suburban Propane for the whole amount of principal of, premium and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     SECTION 5.09 Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to Suburban
Propane (or any other obligor upon the Notes), its creditors or its property and shall be entitled
and empowered to collect, receive and distribute any money or other property payable or deliverable
on any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 6.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 6.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

49

 

     SECTION 5.10 Priorities.

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

     First: to the Trustee, its agents and attorneys for amounts due under Section 6.07
hereof, including payment of all compensation, expenses and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

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

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

     The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 5.10.

     SECTION 5.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Supplemental Indenture or in
any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard
to the merits and good faith of the claims or defenses made by the party litigant. This Section
5.11 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 5.07
hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes.

ARTICLE VI

The Trustee

     SECTION 6.01 Certain Duties and Responsibilities. (a) Except during the continuance of an Event of Default,

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Supplemental Indenture, and no implied covenants or
obligations shall be read into this Supplemental Indenture against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements
of this Supplemental Indenture; but in the case of any such certificates or opinions
which by any provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Supplemental Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

50

 

     (b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Supplemental Indenture, and use the same degree
of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

     (c) No provision of this Supplemental Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that

     (i) this Subsection shall not be construed to limit the effect of Subsection (a) of
this Section;

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

     (iii) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Notes, given pursuant to Section 5.05, relating to the
time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this Supplemental
Indenture with respect to the Notes; and

     (iv) no provision of this Supplemental Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it.

     (d) Whether or not therein expressly so provided, every provision of this Supplemental
Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

     SECTION 6.02 Notice of Defaults. Within 90 days after the occurrence of any Default hereunder with respect to the Notes, the
Trustee shall transmit to the Holders of Notes notice as provided in Section 2.06 of such Default
hereunder known to the Trustee, unless such Default shall have been cured or waived;
provided, however, that, except in the case of a Default in the payment of the
principal of (or premium, if any, on) or interest on any Note, the Trustee shall be protected in
withholding such notice if and so long as the Board of Supervisors, the executive committee or a
trust committee of directors or
Responsible Trust Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders of Notes.

     SECTION 6.03 Certain Rights of Trustee. Subject to the provisions of Section 6.01:

51

 

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting in reliance upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (b) any request or direction of the Issuers mentioned herein shall be sufficiently evidenced
by an Issuers’ Request or Issuers’ Order and any resolution of the Board of Supervisors may be
sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Supplemental Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officers’ Certificate;

     (d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Supplemental Indenture at the request or direction of any of the Holders pursuant to
this Supplemental Indenture, unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Issuers, personally or by agent or attorney at the sole cost of the Issuers and shall incur no
liability or additional liability of any kind by reason of such inquiry or investigation;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or counsel, and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or counsel appointed with due
care (and, in the case of any agent, with the prior written consent of the Issuers;
provided, however, that the Issuers’ prior written consent shall not be required in
connection with the appointment of an agent as a result of or in connection with a default or an
Event of Default) by it hereunder;

     (h) the Trustee shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Supplemental Indenture;

52

 

     (i) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action;

     (j) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Trust Officer of the Trustee has actual knowledge thereof or unless written notice of
any event which is in fact such a default is received by the Trustee at the Corporate Trust Office
of the Trustee, and such notice references the Notes and this Supplemental Indenture;

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

     (l) the Trustee may request that the Issuers deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Supplemental Indenture.

     SECTION 6.04 Not Responsible for Recitals or Issuance of Notes. The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Issuers, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Supplemental Indenture or of the Notes. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the Issuers of Notes or the
proceeds thereof.

     SECTION 6.05 May Hold Notes. The Trustee, any Paying Agent, any Note Registrar or any other agent of the Issuers, in its
individual or any other capacity, may become the owner or pledgee of Notes or warrants to purchase
Notes and, subject to Section 6.08, may otherwise deal with the Issuers with the same rights it
would have if it were not Trustee, Paying Agent, Note Registrar or such other agent.

     SECTION 6.06 Money Held in Trust. Except as provided in Section 13.05, money held by the Trustee or any Paying Agent in trust
hereunder need not be segregated from other funds except to the extent required by law. The
Trustee or any Paying Agent shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Issuers.

     SECTION 6.07 Compensation and Reimbursement. (a) Each of the Issuers agrees:

     (i) to pay to the Trustee from time to time in Dollars such compensation as shall be
agreed to from time to time in writing between the Issuers and the Trustee for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

53

 

     (ii) except as otherwise expressly provided herein, to reimburse the Trustee in Dollars
upon its request for all reasonable expenses, disbursements and advances incurred or made by
the Trustee in accordance with any provision of this Supplemental Indenture (including the
reasonable compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its negligence or
bad faith; and

     (iii) to indemnify each of the Trustee or any predecessor Trustee and their agents in
Dollars for, and to hold it harmless against, any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, or measured or determined by, the
income of the Trustee) incurred without negligence or bad faith on its part, arising out of
or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim (whether asserted by
the Issuers, any Holder or any other Person or liability in connection with the exercise or
performance of any of its powers or duties hereunder, or in connection with enforcing the
provisions of this Section.

     (b) As security for the performance of the obligations of the Issuers under this Section, the
Trustee shall have a lien prior to the Notes upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the payment of principal of, premium, if any, or
interest, if any, on the Notes.

     (c) When the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.01(g) and Section 5.01(h), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable Federal or state bankruptcy, insolvency
or other similar law. The provisions of this Section shall survive the termination of this
Supplemental Indenture.

     SECTION 6.08 Disqualification; Conflicting Interests. (a) If the Trustee has or shall acquire any conflicting interest, as defined in Section
310(b) of the Trust Indenture Act, with respect to the Notes, it shall, within 90 days after
ascertaining that it has such conflicting interest, either eliminate such conflicting interest or
resign with respect to the Notes in the manner and with the effect provided by, and subject to the
provisions of, Section 310(b) of the Trust Indenture Act and this Supplemental Indenture;
provided, however, that there shall be excluded from the operation of Section
310(b)(1) of the Trust Indenture Act any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Issuers are outstanding if the
requirements for such exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met.

     (b) In the event that the Trustee shall fail to comply with the provisions of the preceding
sentence with respect to the Notes, the Trustee shall, within 10 days after the expiration of such
90-day period, transmit, in the manner and to the extent provided in Section 2.06, to all Holders
of Notes notice of such failure.

     (c) Nothing herein shall prevent the Trustee from filing with the Commission the application
referred to in the penultimate paragraph of Section 310(b) of the Trust Indenture Act.

54

 

     (d) To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to
have a conflicting interest with respect to the Notes by virtue of being Trustee with respect to
the Securities of any particular series of Securities other than that series.

     SECTION 6.09 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee for the Notes hereunder which shall be either (1) a
corporation organized and doing business under the laws of the United States of America, any State
thereof or the District of Columbia, which is authorized under such laws to exercise corporate
trust powers and is subject to supervision or examination by Federal or State authority and having
its Corporate Trust Office located in The City of New York or (2) a corporation or other Person
organized and doing business under the laws of a foreign government that is permitted to act as
Trustee pursuant to a rule, regulation or order of the Commission, which is authorized under such
laws to exercise corporate trust powers and is subject to supervision or examination by authority
of such foreign government or a political subdivision thereof substantially equivalent to
supervision or examination applicable to United States institutional trustees; in either case
having a combined capital and surplus of at least $50,000,000. If such corporation or Person
publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and
surplus of such corporation or Person shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. Neither the Issuers nor any Person
directly or indirectly controlling, controlled by, or under common control with the Issuers shall
serve as trustee for the Notes issued hereunder. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign immediately in the
manner and with the effect hereinafter specified in this Article.

     SECTION 6.10 Resignation and Removal; Appointment of Successor. (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

     (b) The Trustee may resign at any time with respect to the Notes by giving written notice
thereof to the Issuers. If the instrument of acceptance by a successor Trustee required by Section
6.11 shall not have been delivered to the resigning Trustee, at the expense of the Issuers, within
45 days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Notes.

     (c) The Trustee may be removed at any time with respect to the Notes by Act of the Holders of
a majority in principal amount of the Outstanding Notes, delivered to the Trustee and to the
Issuers.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 6.08 after written request therefor
by the Issuers or by any Holder who has been a bona fide Holder of a Note as to which the
Trustee has a conflicting interest for at least six months, or

55

 

     (ii) the Trustee for the Notes shall cease to be eligible under Section 6.09 and shall
fail to resign after written request therefor by the Issuers or by any Holder of Notes, or

     (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Issuers by a Board Resolution may remove the Trustee with respect
to all Securities, or (ii) subject to Section 5.11, any Holder who has been a bona fide Holder of a
Note for at least six months (and, in the case of clause (i) above, who is a holder of a Note as to
which the Trustee has a conflicting interest) may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the Trustee with respect
to all Securities issued under the Indenture and the appointment of a successor Trustee or
Trustees.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of the Trustee for any cause, with respect to the Notes or any Securities
of a series, the Issuers, by a Board Resolution, shall promptly appoint a successor Trustee or
Trustees with respect to the Notes or Securities of that or those series (it being understood that
any such successor Trustee may be appointed with respect to the Notes or Securities of one or more
of or all such series and that at any time there shall be only one Trustee with respect to the
Notes or Securities of any particular series) and such successor Trustee or Trustees shall comply
with the applicable requirements of Section 6.11. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the
Notes and Securities of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Notes or Outstanding Securities (as defined in the Indenture)
of such series delivered to the Issuers and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with respect to the Notes and
Securities of such series and to that extent supersede the successor Trustee appointed by the
Issuers. If no successor Trustee with respect to the Notes and Securities of any series shall have
been so appointed by the Issuers or the Holders and accepted appointment in the manner required by
Section 6.11, the Trustee being removed, at the expense of the Issuers, or any Holder who has been
a bona fide Holder of a Note or Note of such series for at least six months, on behalf of himself
and all others similarly situated, may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such series.

     (f) The Issuers shall give notice of each resignation and each removal of the Trustee with
respect to the Notes and Securities of any series and each appointment of a successor Trustee with
respect to the Notes and Securities of any series by giving notice of such event to all Holders of
Notes and Securities of such series as provided by Section 2.06. Each notice shall include the
name of the successor Trustee with respect to the Securities of such series and the address of its
Corporate Trust Office.

56

 

     SECTION 6.11 Acceptance of Appointment by Successor. (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Issuers and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Issuers or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Issuers, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Supplemental Indenture as
shall be necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee
of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered
by any other such Trustee; and upon the execution and delivery of such supplemental indenture, the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates; but,
on request of the Issuers or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates.

     (c) Upon request of any such successor Trustee, the Issuers shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

57

 

     SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
that such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Notes shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes.

     SECTION 6.13 Appointment of Authenticating Agent. (a) The Issuers may appoint an Authenticating Agent or Agents with respect to the Notes which
shall be authorized to act on behalf of the Trustee to authenticate Notes issued upon original
issue or upon exchange, registration of transfer or partial redemption thereof or pursuant to
Section 3.05, and Notes so authenticated shall be entitled to the benefits of this Supplemental
Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Supplemental Indenture to the authentication and
delivery of Notes by the Trustee or the Trustee’s certificate of authentication, such reference
shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the Trustee and shall at
all times be a corporation having a combined capital and surplus of not less than the equivalent of
$50,000,000 and subject to supervision or examination by Federal, state or District of Columbia
authority or the equivalent foreign authority, in the case of an Authenticating Agent who is not
organized and doing business under the laws of the United States of America, any state thereof or
the District of Columbia. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

     (b) Any corporation into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to
the corporate agency or corporate trust business of such Authenticating Agent, shall continue to be
an Authenticating Agent; provided such corporation shall be otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the part of the Trustee
or such Authenticating Agent.

     (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Issuers. The Issuers may at any time terminate the
agency of an
Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the

58

 

Trustee. Upon receiving such a notice of resignation or upon such a termination, or in case at any
time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section, the Issuers may appoint a successor Authenticating Agent which shall be acceptable to the
Trustee and shall mail, or cause to be mailed, written notice of such appointment by first-class
mail, postage prepaid, to all Holders of Notes with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Note Register. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under
the provisions of this Section.

     (d) The Issuers agree to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     (e) If an appointment with respect to one or more series is made pursuant to this Section, the
Notes may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

     This is one of the Notes designated herein issued under the within-mentioned Indenture.

THE BANK OF NEW YORK MELLON, As Trustee

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	[            ]	 	 
	 	 	As Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Authorized [Officer] [Signatory]	 	 

     (f) If all the Notes may not be originally issued at one time, and if the Trustee does not
have an office capable of authenticating Notes upon original issuance located in a Place of Payment
or other place where the Issuers wish to have Notes authenticated upon original issuance, the
Issuers shall appoint in accordance with this Section an Authenticating Agent (which may be an
Affiliate of the Issuers if eligible to be appointed as an Authenticating Agent hereunder) having
an office in such Place of Payment or other place designated by the Issuers with respect to the
Notes.

     SECTION 6.14 Preferential Collection of Claims.

     If and when the Trustee shall be or become a creditor of the Issuers (or any other obligor
upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Issuers (or any such other obligor).

ARTICLE VII

Holders’ Lists and Reports by Trustee and the Issuers

     SECTION 7.01 Issuers to Furnish Trustee Names and Addresses of Holders.
The Issuers will furnish or cause to be furnished to the Trustee:

59

 

     (a) semiannually, not later than 15 days after each Regular Record Date, a list in such form
as the Trustee may reasonably require, of the names and addresses of the Holders of the Notes as of
the Regular Record Date; and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Issuers of any such request, a list of similar form and content, such list to be
dated as of a date not more than five days prior to the time such list is furnished;
notwithstanding the foregoing Subsections (a) and (b), at such times as the Trustee is the Note
Registrar and Paying Agent with respect to the Notes, no such list shall be required to be
furnished in respect of the Notes.

     SECTION 7.02 Preservation of Information; Communications to Holders. (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders of the Notes contained in the most recent list furnished to the Trustee as
provided in Section 7.01 and the names and addresses of Holders of the Notes received by the
Trustee in any capacity as Note Registrar or Paying Agent. The Trustee may destroy any list
furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.

     (b) If three or more Holders of Notes (referred to in this Section as “applicants”)
apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such
applicant has owned a Note for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to communicate with other
Holders of Notes with respect to their rights under this Supplemental Indenture or under the Notes
and is accompanied by a copy of the form of proxy or other communication which such applicants
propose to transmit, then the Trustee shall, within five business days after the receipt of such
application, at its election, either:

     (i) afford such applicants access to the information preserved at the time by the
Trustee in accordance with Section 7.02(a), or

     (ii) inform such applicants as to the approximate number of Holders of Notes whose
names and addresses appear in the information preserved at the time by the Trustee in
accordance with Section 7.02(a), and as to the approximate cost of mailing to such Holders
the form of proxy or other communication, if any, specified in such application.

     If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder of Notes whose name
and address appear in the information preserved at the time by the Trustee in accordance with
Section 7.02(a) a copy of the form of proxy or other communication which is specified in such
request, with reasonable promptness after a tender to the Trustee of the material to be mailed and
of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five
days after such tender the Trustee shall mail to such applicants and file with the Commission,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to the best
interest of the Holders of such series or would be in violation of applicable law. Such written
statement shall specify the basis of such opinion. If the Commission, after opportunity for a
hearing upon

60

 

the objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such objections or if, after the entry of an order sustaining one or
more of such objections, the Commission shall find, after notice and opportunity for hearing, that
all the objections so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Holders with reasonable promptness after the entry
of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

     (c) Every Holder of Notes, by receiving and holding the same, agrees with the Issuers and the
Trustee that neither the Issuers nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the Holders in accordance with Section 7.02(b), regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 7.02(b).

     SECTION 7.03 Reports by Trustee. (a) Within 60 days after May 15 of each year commencing with the May 15 occurring after the
initial issuance of Notes hereunder, the Trustee shall transmit by mail to the Holders of Notes, as
provided in Subsection (c) of this Section, a brief report dated as of such May 15 in accordance
with and to the extent required under Section 313 of the Trust Indenture Act.

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each United States stock exchange upon which any Notes are listed, if any, with
the Commission and with the Issuers.

     (c) Reports pursuant to Section 7.03(a) shall be transmitted by mail (i) to all Holders, as
their names and addresses appear in the Note Register, (ii) to all Holders as have, within two
years preceding such transmission, filed their names and addresses with the Trustee for such
purpose, and (iii) to all Holders whose names and addresses have been furnished or received by the
Trustee pursuant to Sections 7.01 and 7.02.

     SECTION 7.04 Reports by Issuers. The Issuers shall:

     (i) file with the Trustee, within 15 days after the Issuers are required to file the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Issuers may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Issuers are not required to file information, documents or reports pursuant to either of
said Sections, then it shall file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by
the Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;

61

 

     (ii) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Issuers with the conditions and covenants of this
Supplemental Indenture as may be required from time to time in such rules and regulations;

     (iii) transmit by mail to all Holders of Notes, in the manner and to the extent
provided in Section 7.03(c) with respect to reports to be transmitted pursuant to Section
7.03(a), within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Issuers pursuant to clauses
(i) or (ii) of this Section as may be required by rules and regulations prescribed from time
to time by the Commission; and

     (iv) promptly notify the Trustee when any Notes are listed on any stock exchange and
any delisting thereof.

     Delivery of such reports, information and documents to the Trustee pursuant to this Section
7.04 is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Issuers’ compliance with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

ARTICLE VIII

Successors

     SECTION 8.01 Merger, Consolidation or Sale of Assets.

     (a) Suburban Propane shall not, directly or indirectly: (1) consolidate or merge with or into
another Person (whether or not Suburban Propane is the surviving entity); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of
Suburban Propane and its Restricted Subsidiaries taken as a whole, in one or more related
transactions to, another Person; unless:

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

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

62

 

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

     (iv) Suburban Propane or the Person formed by or surviving any such consolidation or
merger (if other than Suburban Propane), or to which such sale, assignment, transfer,
conveyance or other disposition has been made will, on the date of such transaction after
giving pro forma effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Consolidated Fixed Charge Coverage
Ratio test set forth in Section 10.10(a) hereof.

     (b) Finance Corp. shall not (1) consolidate or merge with or into another Person (whether or
not Finance Corp. is the surviving corporation); or (2) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of Finance Corp. in one or more
related transactions to, another Person; unless:

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

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

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

     (iv) Finance Corp or the Person formed by or surviving any such consolidation or merger
(if other than Finance Corp), or to which such sale, assignment, transfer, conveyance or
other disposition has been made will, on the date of such transaction after giving pro forma
effect thereto and any related financing transactions as if the same had occurred at the
beginning of the applicable four-quarter period, be permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Consolidated Fixed Charge Coverage Ratio test set
forth in Section 10.10(a) hereof.

     (c) If Suburban Propane engages in a merger, consolidation or sale of assets in accordance
with the provisions described in Section 8.01(a), Suburban Propane or the Person formed by or
surviving such transaction will comply with Section 10.19.

     (d) The Issuers may not, directly or indirectly, lease all or substantially all of their
properties or assets, in one or more related transactions, to any other Person. This Section 8.01
will not apply to:

63

 

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

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

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

     SECTION 8.02 Successor Person Substituted. Upon any consolidation or merger, or any sale, assignment, transfer, conveyance or other
disposition of all or substantially all of the properties and assets of any Issuer in a transaction
that is subject to, and that complies with the provisions of, Section 8.01 hereof, the successor
Person formed by such consolidation or into or with which such Suburban Propane is merged or to
which such sale, assignment, transfer, conveyance or other disposition is made shall succeed to,
and be substituted for (so that from and after the date of such consolidation, merger, sale,
conveyance or other disposition, the provisions of this Supplemental Indenture referring to
“Suburban Propane,” “Finance Corp.” or the “Issuers,” as the case may be, shall refer to or include
instead the successor Person and not Suburban Propane or Finance Corp., as the case may be), and
may exercise every right and power of such Issuer under this Supplemental Indenture with the same
effect as if such successor Person had been named as such Issuer herein and thereafter the
predecessor Person shall be relieved of all obligations and covenants under this Supplemental
Indenture and the Notes.

ARTICLE IX

Amendment, Supplement And Waiver

     SECTION 9.01 Without Consent of Holders of the Notes.

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

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

     (b) to provide for uncertificated Notes in addition to or in place of certificated Notes;

     (c) to provide for the assumption of the Issuers’ obligations to the Holders of the Notes in
the case of a merger or consolidation or sale of all or substantially all of the Issuers’ assets;

64

 

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

     (e) to comply with requirements of the Commission in order to effect or maintain the
qualification of this Supplemental Indenture under the Trust Indenture Act;

     (f) to conform the text of this Supplemental Indenture or the Notes to any provision of the
“Description of Notes” section of the Issuers’ prospectus supplement dated March 10, 2010 to the
base prospectus included in the Issuer’s registration statement on Form S-3 (File No. 333-165368)
relating to the issuance and sale of the Initial Notes, to the extent that such provision in that
“Description of Notes” was intended to be a verbatim recitation of a provision of this Supplemental
Indenture or the Notes;

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

     (h) to add collateral to secure the Notes or to add Guarantees of the Issuers’ obligations
under the Notes.

     Upon the request of the Issuers accompanied by a resolution of each of its Board of
Supervisors authorizing the execution of any such amended or supplemental indenture, and upon
receipt by the Trustee of the documents described in Section 6.03 hereof, the Trustee will join
with the Issuers and the Guarantors, if any, in the execution of any amended or supplemental
indenture authorized or permitted by the terms of this Supplemental Indenture and to make any
further appropriate agreements and stipulations that may be therein contained, but the Trustee will
not be obligated to enter into such amended or supplemental indenture that affects its own rights,
duties or immunities under this Supplemental Indenture or otherwise.

     SECTION 9.02 With Consent of Holders of the Notes.

     Except as provided below in this Section 9.02, Suburban Propane and the Trustee may amend or
supplement this Supplemental Indenture (including, without limitation, Section 10.11, 10.16 and
11.10 hereof) and the Notes with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 5.06 and 5.09 hereof, any existing Default (other than a Default or Event of Default in
the payment of the principal of, premium or interest on the Notes) or compliance with any provision
of this Supplemental Indenture, the Subsidiary Guarantees, if any, or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the then outstanding
Notes (including, without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes).

     Upon the request of Suburban Propane accompanied by a resolution of its Board of Supervisors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 6.03

65

 

hereof, the
Trustee will join with the Issuers in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Supplemental Indenture or otherwise, in which case the Trustee may in its
discretion, but will not be obligated to, enter into such amended or supplemental Indenture.

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

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, Suburban
Propane will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of Suburban Propane to mail such notice, or any
defect therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. Subject to Sections 5.02, 5.04 and 5.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding may waive compliance in a
particular instance by Suburban Propane with any provision of this Supplemental Indenture or the
Notes. However, without the consent of each Holder affected, an amendment, supplement or waiver
under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

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

     (b) reduce the principal of or change the fixed maturity of any Note;

     (c) (x) reduce the rate of or change the time for payment of interest on any Note or (y)
modify the obligations of the Issuers to make Asset Sale Offers or Change of Control Offers if such
modification was made after the occurrence of such Asset Sale or Change of Control;

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

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

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

     (g) waive a redemption payment with respect to any Note (other than a payment required by
Sections 10.11, 10.16 or 11.10 hereof); or

     (h) make any change in the preceding amendment and waiver provisions.

     SECTION 9.03 Compliance with Trust Indenture Act.

66

 

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

     SECTION 9.04 Revocation and Effect of Consents.

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

     SECTION 9.05 Notation on or Exchange of Notes.

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

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

     SECTION 9.06 Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture authorized pursuant to this
Article IX if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Issuers may not sign an amended or supplemental indenture until
Suburban Propane’s Board of Supervisors approves it. In executing any amended or supplemental
indenture, the Trustee will be provided with and (subject to Sections 6.01 or 6.03 hereof) will be
fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted by this Supplemental
Indenture.

ARTICLE X

Covenants

     SECTION 10.01 Payment of Notes.

     Suburban Propane will pay or cause to be paid the principal of, premium, if any, and interest
on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
interest will be considered paid on the date due if the Paying Agent, of other than the Issuers or
a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by
Suburban Propane in immediately available funds and designated for and sufficient to pay all
principal, premium, if any, and interest then due. If Suburban Propane or any of its

67

 

Subsidiaries
is acting as Paying Agent, Suburban Propane shall, prior to 10:00 a.m. Eastern Time on the due
date, segregate and hold in trust such coin or currency of the United States of America sufficient
to make payments of principal, premium and interest due on such date.

     Suburban Propane will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest at the same rate to the extent lawful.

     SECTION 10.02 Maintenance of Office or Agency.

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

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

     Suburban Propane hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of Suburban Propane in accordance with this Section 10.02.

     SECTION 10.03 Reports.

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

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

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

68

 

All such reports will be prepared in all material respects in accordance with all of the rules and
regulations applicable to such reports. Each annual report on Form 10-K will include a report on
the Issuers’ consolidated financial statements by the Issuers’ certified independent accountants.
In addition, the Issuers will file a copy of each of the reports referred to in clauses (1) and (2)
above with the Commission for public availability within the time periods specified in the rules
and regulations applicable to such reports (unless the Commission will not accept such a filing)
and will post the reports, or links to such reports, on Suburban Propane’s website within those
time periods.

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

     (b) If Suburban Propane has designated any of its Subsidiaries as Unrestricted Subsidiaries,
then the quarterly and annual financial information required by Section 10.03(a) will include a
reasonably detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in Management’s Discussion and Analysis of Financial Condition and Results
of Operations, of the financial condition and results of operations of Suburban Propane and its
Restricted Subsidiaries separate from the financial condition and results of operations of the
Unrestricted Subsidiaries of Suburban Propane.

     (c) For so long as any Notes remain outstanding, at any time Suburban Propane is not required
to file the reports required by this Section 10.03 with the Commission, it will furnish to the
Holders and to securities analysts and prospective investors, upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

     SECTION 10.04 Compliance Certificate.

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

69

 

remains in existence by reason of which payments on
account of the principal of or interest, if any, on the Notes is prohibited or if such event has
occurred, a description of the event and what action Suburban Propane is taking or proposes to take
with respect thereto.

     (b) So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the year-end financial statements delivered pursuant to Section 10.03
above shall be accompanied by a written statement of Suburban Propane’s independent public
accountants (who shall be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to their attention that
would lead them to believe that Suburban Propane has violated any provisions of Article V or
Article X hereof or, if any such violation has occurred, specifying the nature and period of
existence thereof, it being understood that such accountants shall not be liable directly or
indirectly to any Person for any failure to obtain knowledge of any such violation.

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

     SECTION 10.05 Taxes.

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

     SECTION 10.06 Stay, Extension and Usury Laws.

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

     SECTION 10.07 Changes in Covenants When Notes Rated Investment Grade.

     (a) Beginning on the date that:

     (1) the Notes have an Investment Grade Rating; and

     (2) no Default or Event of Default shall have occurred and be continuing,

70

 

and ending on the date (the “Reversion Date”) that either Rating Agency ceases to have
Investment Grade Ratings on the Notes (such period of time, the “Suspension Period”), the
covenants specifically listed under Sections 8.01(a)(iv), 8.01(b)(iv), 10.08, 10.09, 10.10, 10.11,
10.12 and 10.17 hereof will no longer be applicable to the Notes.

     (b) During a Suspension Period, Suburban Propane’s Board of Supervisors may not designate any
of its Subsidiaries as Unrestricted Subsidiaries.

     (c) On the Reversion Date, all Indebtedness incurred during the Suspension Period will be
classified to have been incurred pursuant to and permitted under the Consolidated Fixed Charge
Coverage Ratio or one of the clauses set forth in the definition of Permitted Debt (to the extent
such Indebtedness would be permitted to be incurred thereunder as of the Reversion Date and after
giving effect to Indebtedness incurred prior to the Suspension Period and outstanding on the
Reversion Date). To the extent any Indebtedness would not be permitted to be incurred pursuant to
the Consolidated Fixed Charge Coverage Ratio or any of the clauses set forth in the definition of
Permitted Debt, such Indebtedness will be deemed to have been Existing Indebtedness.

     (d) Notwithstanding the fact that covenants suspended during a Suspension Period may be
reinstated, no Default or Event of Default will be deemed to have occurred as a result of a failure
to comply with the covenants during the Suspension Period or at the time the covenants are
reinstated.

     SECTION 10.08 Restricted Payments.

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

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

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

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

71

 

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

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

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

     (ii) the Restricted Payment, together with the aggregate of all other Restricted
Payments made by Suburban Propane and its Restricted Subsidiaries during the fiscal quarter
during which the Restricted Payment is made (excluding Restricted Payments permitted by
clauses (2), (3), (4) and (6) of Section 10.08(b)), will not exceed:

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

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

     (1) $75.0 million, less

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

     (3) the aggregate net cash proceeds of capital contributions to
Suburban Propane from any Person other than a Restricted Subsidiary of
Suburban Propane, or issuance and sale of shares of Capital Stock, other
than (i) Disqualified Stock and (ii) Capital Stock issued concurrently with
the offering of the Notes, of Suburban Propane to any entity other than to a
Restricted Subsidiary of Suburban Propane, in any case made during the
period ending on the last day of the fiscal quarter of Suburban Propane
immediately preceding the date of the Restricted Payment and beginning on
the date of this Supplemental Indenture, to the extent not previously
expended pursuant to this clause (b) or clause (a) above, plus

     (4) to the extent that any Restricted Investment that was made after
the date of this Supplemental Indenture is sold for cash or otherwise
liquidated or repaid for cash, the cash return of capital with respect to
such Restricted Investment (less the cost of disposition, if any), to the
extent not previously expended pursuant to this clause (b) or clause (a)
above, plus

72

 

     (5) the net reduction in Restricted Investments resulting from cash
dividends, repayments of loans or advances, or other transfers of assets in
each case to the Issuer or any of its Restricted Subsidiaries from any
Person (including, without limitation, Unrestricted Subsidiaries) or from
redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries, to
the extent not previously expended pursuant to this clause(b) or clause (a)
above.

     (b) So long as no Default (other than a Reporting Default) has occurred and is continuing or
would be caused thereby, the preceding provisions will not prohibit:

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

     (2) the making of any Restricted Payment in exchange for, or out of the net
cash proceeds of the substantially concurrent (not to exceed 120 days following the
receipt of such net proceeds) sale (other than to a Subsidiary of Suburban Propane)
of, Equity Interests of Suburban Propane (other than Disqualified Stock) or from the
substantially concurrent contribution of common equity capital to Suburban Propane
by any entity other than a Subsidiary of Suburban Propane; provided,
however, that the amount of any net cash proceeds that are utilized for any
such Restricted Payment will be excluded from the calculation of Available Cash and
from the calculation set forth in Section 10.08(a)(ii)(b) above;

     (3) the defeasance, redemption, repurchase or other acquisition of Indebtedness
of the Issuers that is contractually subordinated to the Notes with the net cash
proceeds from a substantially concurrent (not to exceed 120 days following the
receipt of such net proceeds) incurrence of Permitted Refinancing Indebtedness;
provided, however, that the amount of any net cash proceeds that are
utilized for any such Restricted Payment will be excluded from the calculation of
Available Cash;

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

     (5) the repurchase, redemption or other acquisition or retirement for value of
any Equity Interests of Suburban Propane or any Restricted Subsidiary of Suburban
Propane held by any current or former officer, director or employee of Suburban
Propane or any of its Restricted Subsidiaries pursuant to any restricted unit plan,
equity subscription agreement, equity option agreement, shareholders’ agreement or
similar agreement; provided, that the aggregate price paid for all such
repurchased, redeemed, acquired or retired Equity Interests may not exceed $2.5
million in any calendar year; and

73

 

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

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

     SECTION 10.09 Dividend and Other Payment Restrictions Affecting Subsidiaries.

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

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

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

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

     (b) The restrictions in Section 10.09(a) will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements governing Existing Indebtedness and Credit Facilities as in effect on
the date of this Supplemental Indenture and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings
of those agreements; provided, that the amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacement or refinancings are
not materially more restrictive, taken as a whole, with respect to such dividend and other
payment restrictions than those contained in those agreements on the date of this
Supplemental Indenture;

     (2) this Supplemental Indenture and the Notes;

     (3) restrictions in other Indebtedness incurred in compliance with Section 10.10;
provided, such restrictions, taken as a whole, are not materially more restrictive
than those contained in the agreements described above;

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

74

 

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

     (6) purchase money obligations for property acquired in the ordinary course of business
and Capital Lease Obligations or mortgage financings that impose restrictions on the
property purchased or leased of the nature described in clause (3) of Section 10.09(a);

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

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

     (9) Liens permitted to be incurred under the provisions of Section 10.13 that limit the
right of the debtor to dispose of the assets subject to such Liens;

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

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

     (12) any instrument governing Indebtedness of a subsidiary subject to the U.S. Federal
Energy Regulatory Commission.

     SECTION 10.10 Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) Suburban Propane will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and Suburban Propane will not issue any Disqualified Stock
and will not permit any of its Restricted Subsidiaries to issue any shares of Preferred Stock;
provided, however, that Suburban Propane may incur Indebtedness (including Acquired
Debt) or issue Disqualified Stock if the Consolidated Fixed Charge Coverage Ratio for Suburban
Propane’s most recently ended four full fiscal quarters for which internal financial statements are
available immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock is issued would have been at least 2.0 to 1, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred or Disqualified Stock had been issued, as the case may be, at the
beginning of such four-quarter period.

75

 

     (b) The provisions of Section 10.10(a) will not prohibit the incurrence of any of the
following items of Indebtedness (collectively, “Permitted Debt”):

     (1) the incurrence by Suburban Propane and any of its Restricted Subsidiaries of
additional Indebtedness and letters of credit under Credit Facilities in an aggregate
principal amount at any one time outstanding under this clause (1) (with letters of credit
being deemed to have a principal amount equal to the maximum potential liability of Suburban
Propane and its Restricted Subsidiaries thereunder) not to exceed the greater of (x) $400.0
million and (y) the amount of the Borrowing Base as of the date of such incurrence;

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

     (3) the incurrence by the Issuers of Indebtedness represented by the Initial Notes;

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

     (5) the incurrence by Suburban Propane and any of its Restricted Subsidiaries of
Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
refund, refinance, replace, defease or discharge, Indebtedness that was permitted
by this Supplemental Indenture to be incurred under Section 10.10(a) or clauses (2),
(3) or (5) of this Section 10.10(b);

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

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

     (b) (i) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than Suburban

76

 

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

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

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

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

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

     (9) the guarantee by the Issuers or any of their Restricted Subsidiaries of
Indebtedness of the Issuers or a Restricted Subsidiary of the Issuers that was permitted to
be incurred by another provision of this Section 10.10; provided, that if the
Indebtedness being guaranteed is incurred by one or both of the Issuers and is subordinated
to the Notes, then the guarantee of such Indebtedness by any Restricted Subsidiary of the
Issuers shall be subordinated to the same extent as the Indebtedness guaranteed;

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

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

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

77

 

     (13) (i) Indebtedness of Suburban Propane or any of its Restricted Subsidiaries
acquired after the date hereof and (ii) Indebtedness of any Person merged or consolidated
with or into Suburban Propane or any of its Restricted Subsidiaries after the date hereof,
which Indebtedness in each case, exists at the time of such acquisition, merger,
consolidation or conversion and is not created in contemplation of such event and where such
acquisition, merger or consolidation is otherwise permitted by this Supplemental Indenture;
provided, that the aggregate principal amount of Indebtedness under this clause (13)
shall not at any time exceed $25.0 million; and

     (14) the incurrence by Suburban Propane or any of its Restricted Subsidiaries of
additional Indebtedness in an aggregate principal amount (or accreted value, as applicable)
at any time outstanding, including all Permitted Refinancing Indebtedness incurred to
refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this
clause (14), not to exceed $40.0 million.

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

     For purposes of determining compliance with this Section 10.10, in the event that an item of
proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt
described in clauses (1) through (14) of this Section 10.10, or is entitled to be incurred pursuant
to Section 10.10(a), the Issuers will be permitted to classify such item of Indebtedness on the
date of its incurrence, or later reclassify all or a portion of such item of Indebtedness, in any
manner that complies with this Section 10.10; provided, that Indebtedness under Credit
Facilities outstanding on the date on which the Initial Notes were originally issued and
authenticated under this Supplemental Indenture was deemed to have been incurred on such date in
reliance on the exception provided by clause (1) of the definition of Permitted Debt and cannot be
so reclassified. The accrual of interest, the accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with
the same
terms, and the payment of dividends on Disqualified Stock in the form of additional shares of
the same class of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Stock for purposes of this Section 10.10. Notwithstanding any other
provision of this Section 10.10, the maximum amount of Indebtedness that Suburban Propane or any
Restricted Subsidiary may incur pursuant to this covenant shall not be deemed to be exceeded solely
as a result of fluctuations in exchange rates or currency values.

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

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

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

78

 

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

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

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

     SECTION 10.11 Asset Sales.

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

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

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

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

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

     (iii) any stock or assets of the kind referred to in clauses (2) or (4) of
Section 10.11(b).

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

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

     (1) to repay Indebtedness of Suburban Propane under a Credit Facility or to repay any
Indebtedness of any Restricted Subsidiary of Suburban Propane;

79

 

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

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

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

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

     (c) Any Net Proceeds from Asset Sales that are not applied or invested as provided in Section
10.11(b) will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds
exceeds $20.0 million, the Issuers will make an Asset Sale Offer to all Holders of Notes and all
Holders of other Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Supplemental Indenture with respect to offers to purchase or redeem with
the proceeds of sales of assets to purchase the maximum principal amount of Notes and such other
pari passu Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any
Asset Sale Offer will be equal to 100% of principal amount plus accrued and unpaid interest, to the
date of purchase, and will be payable in cash. If any Excess Proceeds remain after consummation of
an Asset Sale Offer, the Issuers may use those Excess Proceeds for any purpose not otherwise
prohibited by this Supplemental Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
the Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro
rata basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset
at zero.

     The Issuers will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with this Section
10.11 and Section 11.10 of this Supplemental Indenture, the Issuers will comply with the applicable
securities laws and regulations and will not be deemed to have breached their obligations under
this Section 10.11 and Section 11.10 of this Supplemental Indenture by virtue of such conflict.

     SECTION 10.12 Transactions with Affiliates.

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

80

 

     (1) the Affiliate Transaction is on terms that are substantially as favorable, taken as
a whole, to Suburban Propane or the relevant Restricted Subsidiary as would be obtainable in
a comparable transaction by Suburban Propane or such Restricted Subsidiary with an unrelated
Person; and

     (2) Suburban Propane delivers to the Trustee, with respect to any Affiliate Transaction
or series of related Affiliate Transactions involving aggregate consideration in excess of
$25.0 million, a resolution of the Board of Supervisors set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with this Section 10.12 and
that such Affiliate Transaction has been approved by a majority of the disinterested members
of the Board of Supervisors of Suburban Propane.

     (b) The following items will not be deemed to be Affiliate Transactions and, therefore, will
not be subject to the provisions of Section 10.12(a):

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

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

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

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

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

     (6) Restricted Payments that do not violate Section 10.08 hereof;

     (7) loans or advances to employees, directors or officers in the ordinary course of
business not to exceed $1.0 million in the aggregate at any one time outstanding plus
advances of out-of-pocket expenses in the ordinary course of business;

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

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

     (10) the payment of expenses and indemnification or contribution obligations of any
Person pursuant to Suburban Propane’s partnership agreement or the partnership

81

 

agreement of
the Operating Partnership, in each case as in effect on the date of this Supplemental
Indenture.

     SECTION 10.13 Liens. Suburban Propane will not create, incur, assume or suffer to exist any Lien securing
Indebtedness incurred by Suburban Propane of any kind on any asset now owned or hereafter acquired,
except Permitted Liens.

     SECTION 10.14 Business Activities. Suburban Propane will not, and will not permit any of its Restricted Subsidiaries to, engage
in any business other than Permitted Businesses, except to such extent as would not be material to
Suburban Propane and its Restricted Subsidiaries taken as a whole.

     SECTION 10.15 Corporate Existence.

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

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

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

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

     SECTION 10.16 Offer to Repurchase Upon Change of Control.

     (a) If a Change of Control occurs, the Issuers will make an offer (a “Change of Control
Offer”) to each Holder of Notes to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price in cash equal to
101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest on the
Notes repurchased, to the date of purchase, subject to the rights of Holders on the relevant record
date to receive interest due on the relevant Interest Payment Date (the “Change of Control
Payment”). Within 30 days following any Change of Control, the Issuers will mail a notice to
each Holder describing the transaction or transactions that constitute the Change of Control and
stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 10.16 and
that all Notes tendered will be accepted for payment;

82

 

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

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

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

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

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

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

     The
Issuers will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of
this Section 10.16, the Issuers will comply with the applicable securities laws and
regulations and will not be deemed to have breached their obligations under this Section 10.16 by
virtue of such compliance.

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

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

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

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

83

 

The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control
Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided, that each new Note will be in a
principal amount of $2,000 or an integral multiple of $1,000 in excess thereof.

     (c) Notwithstanding anything to the contrary in this Section 10.16, the Issuers will not be
required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 10.16 applicable to a Change of Control Offer made by the
Issuers and purchases all Notes properly tendered and not withdrawn under the Change of Control
Offer, or (2) notice of redemption has been given pursuant to Section 11.08 hereof unless and until
there is a default in payment of the applicable Redemption Price.

     (d) Notwithstanding anything to the contrary in this Supplemental Indenture, the provisions of
this Section 10.16 that require the Issuers to make a Change of Control Offer following a Change of
Control will be applicable whether or not any other provisions of this Supplemental Indenture are
applicable.

     SECTION 10.17 Limitations on Issuances of Guarantees of Indebtedness.

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

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

     (1) in connection with any sale or other disposition of all or substantially all of the
assets of that Guarantor (including by way of merger or consolidation) to a Person that is
not (either before or after giving effect to such transaction) Suburban Propane or a
Restricted Subsidiary of Suburban Propane, if the sale or other disposition does not violate
Section 10.11 of this Supplemental Indenture;

     (2) in connection with any sale or other disposition of all of the Capital Stock of
that Guarantor to a Person that is not (either before or after giving effect to such
transaction) Suburban Propane or a Restricted Subsidiary of Suburban Propane, if the sale or
other disposition does not violate Section 10.11 of this Supplemental Indenture;

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

84

 

     (4) upon legal defeasance or satisfaction and discharge of the Notes as provided in
Article XIII and Section 4.01 of this Supplemental Indenture; or

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

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

     SECTION 10.18 Payments for Consent. Suburban Propane will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of
Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions
of this Supplemental Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth
in the solicitation documents relating to such consent, waiver or agreement.

     SECTION 10.19 Existence of Corporate Co-Issuer. Suburban Propane will always maintain, directly or indirectly, a Wholly Owned Restricted
Subsidiary of Suburban Propane organized as a corporation under the laws of the United States of
America, any state thereof or the District of Columbia that will serve as a co-obligor of the Notes
unless Suburban Propane is itself a corporation under the laws of the United States of America, any
state thereof or the District of Columbia.

     SECTION 10.20 Designation of Restricted and Unrestricted Subsidiaries.

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

     Any designation of a Subsidiary of Suburban Propane as an Unrestricted Subsidiary will be
evidenced to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving
effect to such designation and an Officers’ Certificate certifying that such designation complied
with the preceding conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the
preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Supplemental Indenture and any Indebtedness of such
Subsidiary will be deemed to be incurred by a Restricted Subsidiary of Suburban Propane as of such
date and, if such Indebtedness is not permitted to be incurred as of such date under Section 10.10
hereof, Suburban Propane will be in default of Section 10.10. The Board of Supervisors of Suburban
Propane may at any time designate any Unrestricted Subsidiary to be a

85

 

Restricted Subsidiary;
provided, that such designation will be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of Suburban Propane of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation will only be permitted if (1) such Indebtedness is permitted under
Section 10.10 hereof, calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period; and (2) no Default or Event of Default would be in
existence following such designation.

     SECTION 10.21 Calculation of Original Issue Discount.

     The Issuers shall file with the Trustee promptly after the issuance of any Notes pursuant to
this Supplemental Indenture, (i) a written notice specifying the amount of original issue discount
(including a depreciation schedule, daily rates and accrual periods) accrued on Outstanding Notes
as of such date and (ii) such other specific information relating to such original issue discount
as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

ARTICLE XI

Redemption of Notes

     SECTION 11.01 Applicability of Article. Notes which are redeemable before their Stated Maturity shall be redeemable in accordance with
their terms and in accordance with this Article.

     SECTION 11.02 Election to Redeem; Notice to Trustee. The election of the Issuers to redeem any Notes shall be evidenced by Board Resolutions. If
the Issuers shall desire to exercise the right to redeem all, or, as the case may be, any part of
the Notes, the Issuers shall, at least 15 days but no more than 60 days prior to the Redemption
Date
fixed by the Issuers (unless a shorter notice shall be satisfactory to the Trustee), notifying the
Trustee of such Redemption Date and of the principal amount of Notes to be redeemed. In the case
of any redemption of Notes prior to the expiration of any restriction on such redemption provided
in the terms of such Notes or elsewhere in this Supplemental Indenture, the Issuers shall furnish
the Trustee with an Officers’ Certificate evidencing compliance with such restriction.

     SECTION 11.03 Selection by Trustee of Notes to be Redeemed.

     If less than all of the Notes are to be redeemed at any time, the Trustee will select Notes
for redemption as follows:

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

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

     No Notes of $2,000 or less can be redeemed in part.

86

 

     The Trustee shall promptly notify the Issuers in writing of the Notes selected for redemption
and, in the case of any Notes selected for partial redemption, the principal amount thereof to be
redeemed.

     For all purposes of this Supplemental Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed or
to be redeemed only in part, to the portion of the principal amount of such Notes which has been or
is to be redeemed.

     SECTION 11.04 Notice of Redemption. (a) Notice of redemption will be mailed by first class mail, as provided in Section 2.06, at
least 30 but not more than 60 days before the Redemption Date to each Holder of Notes to be
redeemed at its registered address, except that redemption notices may be mailed more than 60 days
prior to a Redemption Date if the notice is issued in connection with a defeasance of the Notes or
a satisfaction and discharge of this Supplemental Indenture in accordance with Articles IV or XIII
of this Supplemental Indenture. Notices of redemption may not be conditional.

     If any Note is to be redeemed in part only, the notice of redemption that relates to that Note
will state the portion of the principal amount of that Note that is to be redeemed. A new Note in
principal amount equal to the unredeemed portion of the original Note will be issued in the name of
the Holders of such Notes upon cancellation of the original Notes. Notes called for redemption
become due on the date fixed for redemption. On and after the Redemption Date, interest ceases to
accrue on Notes or portions of them called for redemption.

     (b) Each such notice of redemption shall specify the Redemption Date, the Redemption Price,
the Place or Places of Payment, that the Notes are being redeemed at the
option of the Issuers pursuant to provisions contained in the terms of the Notes or in this
Supplemental Indenture, together with a brief statement of the facts permitting such redemption,
that on the Redemption Date the Redemption Price will become due and payable upon each Note
redeemed, that payment will be made upon presentation and surrender of the applicable Notes, that
any interest accrued to the Redemption Date will be paid as specified in said notice, and that on
and after said Redemption Date any interest thereon or on the portions thereof to be redeemed will
cease to accrue. If less than all the Notes are to be redeemed, the notice of redemption shall
specify the registration and, if any, CUSIP numbers of the Notes to be redeemed. In case any Note
is to be redeemed in part only, the notice of redemption shall state the portion of the principal
amount thereof to be redeemed and shall state that on and after the Redemption Date, upon surrender
of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will
be issued, or, in the case of Notes providing appropriate space for such notation, at the option of
the Holders, the Trustee, in lieu of delivering a new Note or Notes as aforesaid, may make a
notation on such Note of the payment of the redeemed portion thereof.

     (c) Notice of redemption of Notes to be redeemed at the election of the Issuers shall be given
by the Issuers or, at the Issuers’ request delivered at least 5 Business Days before the date such
notice is to be given (unless a shorter period shall be acceptable to the Trustee), by the Trustee
in the name and at the expense of the Issuers.

87

 

     SECTION 11.05 Deposit of Redemption Price. On or before 10:00 a.m. Eastern Time on any Redemption Date, Suburban Propane shall deposit
with the Trustee or with a Paying Agent (or, if Suburban Propane is acting as its own paying Agent,
segregate and hold in trust) an amount of money sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Notes which are to be redeemed on that date. The Trustee or the Paying Agent will promptly return
to Suburban Propane any money deposited with the Trustee or the Paying Agent by Suburban Propane in
excess of the amounts necessary to pay the Redemption Price and (except if the Redemption Date
shall be an Interest Payment Date) any accrued interest on, all the Notes which are to be redeemed
on that date, if any.

     SECTION 11.06 Notes Payable on Redemption Date.

 (a) Notice of redemption having been given as aforesaid, the Notes so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Issuers shall default in the payment of the Redemption Price and
accrued interest) such Notes shall cease to bear interest. Upon surrender of any such Note for
redemption in accordance with said notice, such Note shall be paid by the Issuers at the Redemption
Price, together with accrued interest to the Redemption Date; provided, however,
that unless otherwise specified as contemplated by Section 3.11, installments of interest on Notes
whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such
Notes, or one or more Predecessor Notes, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section 3.06.

     (b) If any Note called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Note.

     SECTION 11.07 Notes Redeemed in Part. Any Note which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Issuers or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Issuers and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Issuers shall execute, and the
Trustee shall authenticate and make available for delivery to the Holder of such Note without
service charge, a new Note or Notes of the same series and Stated Maturity, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Note so surrendered or, in the case of Notes
providing appropriate space for such notation, at the option of the Holder, the Trustee, in lieu of
delivering a new Note or Notes as aforesaid, may make a notation on such Note of the Payment of the
redeemed portion thereof.

     SECTION 11.08 Optional Redemption.

     (a) At any time prior to March 15, 2013, the Issuers may on any one or more occasions redeem
up to 35% of the aggregate principal amount of Notes issued under this Supplemental Indenture at a
Redemption Price of 107.375% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the applicable Redemption Date, with the net cash proceeds of one or more Equity Offerings;
provided, that:

88

 

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

     (ii) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

     (b) On or after March 15, 2015, the Issuers may redeem all or a part of the Notes upon not
less than 30 nor more than 60 days’ notice, at the Redemption Prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest on the Notes redeemed, to the
applicable Redemption Date, if redeemed during the twelve-month period beginning on March 15 of the
years indicated below (subject to the rights of Holders on the relevant record date to receive
interest on the relevant Interest Payment Date):

	 	 	 	 	 
	Year	 	Percentage
	2015
	 	 	103.688	%
	2016
	 	 	102.458	%
	2017
	 	 	101.229	%
	2018 and thereafter
	 	 	100.000	%

     (c) Notwithstanding the provisions contained in paragraphs (a) and (b) of this Section 11.08,
the Issuers may redeem the Notes, in whole or in part, at any time prior to March 15, 2015, upon
not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid
interest, if any, to, the applicable Redemption Date (subject to the right of Holders on the
relevant record date to receive interest due on the relevant Interest Payment Date).

     (d) Any redemption pursuant to this Section 11.08 shall be made pursuant to the provisions of
Article XI hereof.

     (e) Unless the Issuers default in the payment of the Redemption Price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable Redemption Date.

     SECTION 11.09 Mandatory Redemption.

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

     SECTION 11.10 Offer to Purchase by Application of Excess Proceeds.

     In the event that, pursuant to Section 10.11 hereof, Suburban Propane is required to commence
an offer to all Holders to purchase Notes (an “Asset Sale Offer”), it will follow the
procedures specified below.

89

 

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

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

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

 Notes pursuant to the Asset Sale Offer. The notice, which will govern the terms of the Asset
Sale Offer, will state:

     (a) that the Asset Sale Offer is being made pursuant to this Section 11.10 and Section
10.11 hereof and the length of time the Asset Sale Offer will remain open;

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

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

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

     (e) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in whole multiples of $2,000 or an integral multiple of $1,000
in excess thereof;

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

90

 

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

     (h) that, if the aggregate principal amount of Notes and other pari passu Indebtedness
surrendered by holders thereof exceeds the Offer Amount, the Trustee will select the Notes
and other pari passu Indebtedness to be purchased on a pro rata basis based on the principal
amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as
may be deemed appropriate by Suburban Propane so that only Notes in denominations of whole
multiples of $2,000 or an integral multiple of $1,000 in excess thereof, will be purchased);
and

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

     On or before the Purchase Date, Suburban Propane will, to the extent lawful, accept for
payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof
tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all
Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers’ Certificate stating that such Notes or portions thereof were
accepted for payment by the Issuers in accordance with the terms of this Section 11.10. Suburban
Propane, the Depositary or the Paying Agent, as the case may be, will promptly (but in any case not
later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount
equal to the purchase price of the Notes tendered by such Holder and accepted by the Issuers for
purchase, and the Issuers, will promptly issue a new Note, and the Trustee, upon written request
from Suburban Propane will authenticate and mail or deliver (or cause to be transferred by book
entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the
Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Issuers to
the Holder thereof. Suburban Propane will publicly announce the results of the Asset Sale Offer on
the Purchase Date.

     Other than as specifically provided in this Section 11.10, any purchase pursuant to this
Section 11.10 shall be made pursuant to the provisions of Article XI hereof.

ARTICLE XII

Subsidiary Guarantees

     SECTION 12.01 Guarantee.

     (a) Subject to Section 10.17 and this Article XII, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the

91

 

validity and
enforceability of this Supplemental Indenture, the Notes or the obligations of the Issuers
hereunder or thereunder, that:

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

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

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

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

     (i) If any Holder or the Trustee is required by any court or otherwise to return to the
Issuers, the Guarantors or any custodian, trustee, liquidator or other similar official
acting in relation to either Suburban Propane or the Guarantors, any amount paid by either
to the Trustee or such Holder, this Subsidiary Guarantee, to the extent theretofore
discharged, will be reinstated in full force and effect.

     (ii) Each Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in
full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between
the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the
maturity of the obligations guaranteed hereby may be accelerated as provided in Article V
hereof for the purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations guaranteed
hereby, and (2) in the event of any declaration of acceleration of such obligations as
provided in Article V hereof, such obligations

92

 

(whether or not due and payable) will
forthwith become due and payable by the Guarantors for the purpose of this Subsidiary
Guarantee. The Guarantors will have the
right to seek contribution from any non-paying Guarantor so long as the exercise of
such right does not impair the rights of the Holders under the Subsidiary Guarantee.

SECTION 12.02 Limitation on Guarantor Liability.

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

SECTION 12.03 Execution and Delivery of Subsidiary Guarantee.

     To evidence its Subsidiary Guarantee set forth in Section 12.01 hereof, each Guarantor hereby
agrees that a notation of such Subsidiary Guarantee substantially in the form attached as
Exhibit B hereto will be endorsed by an Officer of such Guarantor on each Note
authenticated and delivered by the Trustee and that this Supplemental Indenture will be executed on
behalf of such Guarantor by one of its Officers.

     Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section 12.01 hereof
will remain in full force and effect notwithstanding any failure to endorse on each Note a notation
of such Subsidiary Guarantee.

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

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

     In the event that Suburban Propane or any of its Restricted Subsidiaries creates or acquires
any Subsidiary after the date of this Supplemental Indenture, if required by Section 10.17 hereof,
the Issuers will cause such Subsidiary to comply with the provisions of Section 10.17 hereof and
this Article XII, to the extent applicable.

93

 

SECTION 12.04 Guarantors May Consolidate, etc., on Certain Terms.

     Except as otherwise provided in Section 12.05 hereof, no Guarantor may sell or otherwise
dispose of all or substantially all of its assets to, or consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person, other than
Suburban Propane or another Guarantor, unless:

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

     (b) either:

          (i) subject to Section 12.05 hereof, the Person acquiring the property in any such sale
or disposition or the Person formed by or surviving any such consolidation or merger
unconditionally assumes all the obligations of that Guarantor, pursuant to a supplemental
indenture in form and substance reasonably satisfactory to the Trustee, under this
Supplemental Indenture and the Subsidiary Guarantee on the terms set forth herein or
therein; or

          (ii) the Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Supplemental Indenture, including without limitation,
Section 10.11 hereof.

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

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

SECTION 12.05 Releases.

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

94

 

     (a) in connection with any sale or other disposition of all or substantially all of the
assets of that Guarantor (including by way of merger or consolidation) to a Person that is
not (either before or after giving effect to such transaction) Suburban Propane or a
Restricted Subsidiary of Suburban Propane, if the sale or other disposition does not
violate Sections 10.10 or 11.10 of this Supplemental Indenture;

     (b) in connection with any sale or other disposition of all of the Capital Stock of
that Guarantor to a Person that is not (either before or after giving effect to such
transaction) Suburban Propane or a Restricted Subsidiary of Suburban Propane, if the sale or
other disposition does not violate Sections 10.10 or 11.10 of this Supplemental Indenture;

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

     (d) upon Legal Defeasance or satisfaction and discharge of the Supplemental Indenture
in respect of the Notes as provided in Section 13.02 and Article IV of this Supplemental
Indenture; or

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

     Any Guarantor not released from its obligations under its Subsidiary Guarantee as provided in
this Section 12.05 will remain liable for the full amount of principal of and interest on the Notes
and for the other obligations of any Guarantor under this Supplemental Indenture as provided in
this Article XII.

ARTICLE XIII

Legal Defeasance and Covenant Defeasance

     SECTION 13.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuers may, at the option of the Board of Supervisors of Suburban Propane evidenced by a
resolution set forth in an Officers’ Certificate, and at any time, elect to have either Section
13.02 or 13.03 hereof be applied to all outstanding Notes upon compliance with the conditions set
forth below in this Article XIII.

     SECTION 13.02 Legal Defeasance and Discharge.

     Upon the Issuers’ exercise under Section 13.01 hereof of the option applicable to this Section
13.02, the Issuers will, subject to the satisfaction of the conditions set forth in Section 13.04
hereof, be deemed to have been discharged from their obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Issuers will be deemed to have
paid and discharged the entire Indebtedness represented by the outstanding Notes, which will
thereafter be deemed to be “outstanding” only for the purposes of Section 13.05 hereof and the

95

 

other Sections of this Supplemental Indenture referred to in clauses (a) and (b) below, and to have
satisfied all their other obligations under such Notes and this Supplemental Indenture (and the
Trustee, on demand of and at the expense of Suburban Propane, shall execute proper
instruments acknowledging the same), except for the following provisions which will survive
until otherwise terminated or discharged hereunder:

     (a) the rights of Holders of Notes to receive payments in respect of the principal of, or
interest or premium on such Notes when such payments are due from the trust referred to in Section
13.04 hereof;

     (b) the Issuers’ obligations with respect to such Notes under Article III and Section 10.02
hereof;

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

     (d) this Article XIII.

     Subject to compliance with this Article XIII, the Issuers’ may exercise their option under
this Section 13.02 notwithstanding the prior exercise of their option under Section 13.03 hereof.

     SECTION 13.03 Covenant Defeasance.

     Upon the Issuers’ exercise under Section 13.01 hereof of the option applicable to this Section
13.03, the Issuers will, subject to the satisfaction of the conditions set forth in Section 13.04
hereof, be released from their obligations under the covenants contained in Sections 10.03, 10.05,
10.08, 10.09, 10.10, 10.11, 10.12, 10.13, 10.14, 10.15 (except with respect to the existence of
each Issuer), 10.16, 10.17, 10.18, 10.20 and 11.10 hereof and Section 8.01(a)(iv) hereof with
respect to the outstanding Notes on and after the date the conditions set forth in Section 13.04
hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act
of Holders (and the consequences of any thereof) in connection with such covenants, but will
continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such
Notes will not be deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Issuers may omit to comply with
and will have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an Event of Default
under Section 5.01 hereof, but, except as specified above, the remainder of this Supplemental
Indenture and such Notes will be unaffected thereby. In addition, upon the Issuers’ exercise under
Section 13.01 hereof of the option applicable to this Section 13.03 hereof, subject to the
satisfaction of the conditions set forth in Section 13.04 hereof, Section 5.01(c) through 5.01(f)
hereof will not constitute Events of Default.

     SECTION 13.04 Conditions to Legal or Covenant Defeasance.

96

 

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 13.02
or 13.03 hereof:

     (a) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a combination of
cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient, in
the opinion of a nationally recognized investment bank, appraisal firm, or firm of independent
public accountants, to pay the principal of, or interest and premium on the Notes on the Stated
Maturity or on the applicable Redemption Date, as the case may be, and the Issuers must specify
whether the Notes are being defeased to maturity or to a particular Redemption Date;

     (b) in the case of a Legal Defeasance, the Issuers must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that (i) the Issuers have received from, or
there has been published by, the Internal Revenue Service a ruling or (ii) since the date of this
Supplemental Indenture, there has been a change in the applicable federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders
of the Notes will not recognize income, gain or loss for federal income tax purposes as a result of
such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

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

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

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

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

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

97

 

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

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

     SECTION 13.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

     Subject to Section 13.06 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 13.05, the “Trustee”) pursuant to Section 13.04 hereof in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Supplemental Indenture, to the payment, either directly or
through any Paying Agent (including an Issuer acting as Paying Agent) as the Trustee may determine,
to the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium and interest, but such money need not be segregated from other funds except to the extent
required by law.

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

     Notwithstanding anything in this Article XIII to the contrary, the Trustee will deliver or pay
to the Issuers from time to time upon the request of the Issuers any money or non-callable
Government Securities held by it as provided in Section 13.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section 13.04(a)
hereof), are in excess of the amount thereof that would then be required to be deposited to effect
an equivalent Legal Defeasance or Covenant Defeasance.

     SECTION 13.06 Repayment to Suburban Propane.

     Any money deposited with the Trustee or any Paying Agent, or then held by Suburban Propane, in
trust for the payment of the principal of, premium or interest on any Note and remaining unclaimed
for two years after such principal, premium or interest has become due and payable shall be paid to
Suburban Propane on its request or (if then held by Suburban Propane)

98

 

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

     SECTION 13.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
Government Securities in accordance with Section 13.02 or 13.03 hereof, as the case may be, by
reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Issuers’ obligations under this Supplemental
Indenture and the Notes will be revived and reinstated as though no deposit had occurred pursuant
to Section 13.02 or 13.03 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 13.02 or 13.03 hereof, as the case may be;
provided, however, that, if Suburban Propane makes any payment of principal of,
premium or interest on any Note following the reinstatement of its obligations, Suburban Propane
will be subrogated to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

99

 

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

	 	 	 	 	 
	 	SUBURBAN PROPANE PARTNERS, L.P.,

as Issuer

 	 
	 	By:  	/s/ Michael J. Dunn, Jr.
 	 
	 	Name:  	 	Michael J. Dunn, Jr. 	 
	 	Title:  	 	President and Chief Executive Officer 	 
	 
	 	SUBURBAN ENERGY FINANCE CORP.,

as Issuer

 	 
	 	By:  	/s/ Michael J. Dunn, Jr.
 	 
	 	Name:  	 	Michael J. Dunn, Jr. 	 
	 	Title:  	 	President 	 
	 
	 	THE BANK OF NEW YORK MELLON, as Trustee,

 	 
	 	By:  	/s/ Franca  M. Ferrera
 	 
	 	Name:  	 	Franca M. Ferrera 	 
	 	Title:  	 	Senior Associate 	 
	 

 

 

EXHIBIT A

[FACE OF NOTE]

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE FIRST SUPPLEMENTAL INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.04 OF THE FIRST SUPPLEMENTAL INDENTURE,
(2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.04 OF THE
FIRST SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 3.08 OF THE FIRST SUPPLEMENTAL INDENTURE AND (4) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF SUBURBAN PROPANE.

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

A-1

 

			
	CUSIP: 864486 AC9
	 	No.      

$250,000,000.00 7-3/8% Senior Notes due 2020

SUBURBAN PROPANE PARTNERS, L.P.

SUBURBAN ENERGY FINANCE CORP.

promises to pay to                                          or registered assigns, the principal sum of TWO HUNDRED
FIFTY MILLION AND NO/100 DOLLARS or such greater or lesser amount as may from time to time be
endorsed on the Schedule of Exchanges of Interests in the Global Note on March 15, 2020.

Interest Payment Dates: March 15 and September 15 of each year

Record Dates: March 1 and September 1 of each year

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

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

Dated: March 23, 2010

	 	 	 	 	 	 	 	 	 
	SUBURBAN PROPANE PARTNERS, L.P.	 	 	 	SUBURBAN ENERGY FINANCE CORP.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:	 	 	 	Name:
	Title:	 	 	 	Title:

This is one of the Notes referred to in

the within-mentioned Supplemental Indenture:

	 	 	 	 	 
	THE BANK OF NEW YORK MELLON,

as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 

A-2

 

[BACK OF NOTE]

7-3/8% Senior Notes due 2020

     Capitalized terms used herein have the meanings assigned to them in the First Supplemental
Indenture referred to below unless otherwise indicated.

     (1) Interest. Suburban Propane Partners, L.P., a Delaware limited partnership
(“Suburban Propane”) and Suburban Energy Finance Corp., a Delaware corporation
(“Finance Corp.” and, together with Suburban Propane, the “Issuers”), promise to
pay interest on the principal amount of this Note at 7-3/8% per annum from March 23, 2010 until
maturity. The Issuers will pay interest semi-annually in arrears on March 15 and September 15 of
each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an
“Interest Payment Date”). Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of issuance;
provided, that if there is no existing Default in the payment of interest, and if this Note
is authenticated between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be September 15,
2010. The Issuers will pay interest on overdue principal and interest from time to time on demand
at a rate that is 1% per annum in excess of the rate then in effect; it will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace periods) from time to time on
demand at a rate that is 1% per annum in excess of the rate then in effect to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the March
1 or September 1 next preceding the Interest Payment Date, even if such Notes are cancelled after
such record date and on or before such Interest Payment Date, except as provided in Section 3.06 of
the Supplemental Indenture with respect to defaulted interest. The Notes will be payable as to
principal, premium and interest at the office or agency of the Paying Agent maintained for such
purpose within the City and State of New York, or, if a Holder of Notes has given wire transfer
instructions to the Issuers, payment of principal, interest and premium, if any, may be made in
accordance with those instructions; provided, that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest and premium, if any, on,
all global notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment will be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Note Registrar. Initially, The Bank of New York Mellon, the
Trustee under the Supplemental Indenture, will act as Paying Agent and Note Registrar. The Issuers
may change any Paying Agent or Note Registrar without notice to any Holder. The Issuers or any of
their Subsidiaries may act in any such capacity.

     (4) Indenture. The Issuers issued the Notes under a First Supplemental Indenture,
dated as of March 23, 2010 (the “Supplemental Indenture”), by and among the Issuers and the

A-3

 

Trustee, to an Indenture, dated as of March 23, 2010, by and among the Issuers and the Trustee
(the “Base Indenture” and, as supplemented by the Supplemental Indenture, in respect of the
Notes, the “Indenture”). 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 to the extent permitted by law. The Notes are unsecured general
obligations of the Issuers.

     (5) Optional Redemption. Subject to the additional terms and conditions set forth in
the Supplemental Indenture:

     (a) At any time prior to March 15, 2013, the Issuers may on any one or more occasions
redeem up to 35% of the aggregate principal amount of Notes issued under the Supplemental
Indenture at a Redemption Price of 107.375% of the principal amount thereof, plus accrued
and unpaid interest, if any, to the Redemption Date, with the net cash proceeds of one or
more Equity Offerings; provided, that:

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

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

     (b) On or after March 15, 2015, the Issuers may redeem all or a part of the Notes upon
not less than 30 nor more than 60 days’ notice, at the Redemption Prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid interest on the
Notes redeemed, to the applicable Redemption Date, if redeemed during the twelve-month
period beginning on March 15 of the years indicated below (subject to the rights of Holders
on the relevant record date to receive interest on the relevant Interest Payment Date):

	 	 	 	 	 
	Year	 	Percentage
	2015
	 	 	103.688	%
	2016
	 	 	102.458	%
	2017
	 	 	101.229	%
	2018 and thereafter
	 	 	100.000	%

     (c) Notwithstanding the provisions contained in paragraphs (a) and (b) above, the
Issuers may redeem the Notes, in whole or in part, at any time prior to March 15, 2015, upon
not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest, if any, to, the applicable Redemption Date (subject to

A-4

 

the right of Holders on the relevant record date to receive interest due on the
relevant Interest Payment Date).

     (6) Mandatory Redemption.

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

     (7) Repurchase at the Option of Holders. Subject to the additional terms and
conditions set forth in the Supplemental Indenture:

     (a) If a Change of Control occurs, the Issuers will make an offer (a “Change of
Control Offer”) to each Holder of Notes to repurchase all or any part (equal to $2,000
or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus
accrued and unpaid interest on the Notes repurchased, to the date of purchase, subject to
the rights of Holders on the relevant record date to receive interest due on the relevant
Interest Payment Date (the “Change of Control Payment”). Within 30 days following
any Change of Control, the Issuers will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and setting forth the
procedures governing the Change of Control Offer as required by the Supplemental Indenture.
The Holder of this Note may elect to have this Note or a portion thereof in an authorized
denomination purchased by completing the form entitled “Option of Holder to Elect Purchase”
attached hereto and tendering this Note pursuant to the Change of Control Offer.

     (b) If Suburban Propane or any of its Restricted Subsidiaries consummates any Asset
Sale, in certain circumstances specified in Section 10.11 of the Supplemental Indenture, the
Issuers will commence an offer to all Holders of Notes and all holders of other Indebtedness
that is pari passu with the Notes containing provisions similar to those set forth in the
Supplemental Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets (an “Asset Sale Offer”) pursuant to Section 11.10 of the
Supplemental Indenture to purchase the maximum principal amount of Notes and other pari
passu Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any
Asset Sale Offer will be equal to 100% of the principal amount thereof plus accrued and
unpaid interest, to the date of purchase, and will be payable in cash in accordance with the
procedures set forth in the Supplemental Indenture. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Issuers may use those Excess Proceeds for any
purpose not otherwise prohibited by the Supplemental Indenture. If the aggregate principal
amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari
passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the
subject of an offer to purchase will receive an Asset Sale Offer from the Issuers prior to
any related purchase date and may elect to have such Notes purchased by completing the form
entitled “Option of Holder to Elect Purchase” attached hereto.

A-5

 

     (8) Notice of Redemption. Notice of redemption will 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, except that redemption notices may be mailed more than 60
days prior to a Redemption Date if the notice is issued in connection with a defeasance of the
Notes or a satisfaction or discharge of the Supplemental Indenture. Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $2,000 or in integral multiples
of $1,000 in excess thereof. On and after the Redemption Date interest ceases to accrue on Notes
or portions thereof called for redemption.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The
transfer of Notes may be registered and Notes may be exchanged as provided in the Supplemental
Indenture. The Note Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Issuers may require a Holder to pay any
taxes and fees required by law or permitted by the Supplemental Indenture. The Issuers need not
exchange or register the transfer of any Note or portion of a Note selected for redemption, except
for the unredeemed portion of any Note being redeemed in part. Also, the Issuers need not exchange
or register the transfer of any Notes for a period of 15 days before a selection of Notes to be
redeemed or during the period between a record date and the corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the
Supplemental Indenture or the Notes may be amended or supplemented with the consent of the Holders
of at least a majority in principal amount of the then outstanding Notes (including, without
limitation consents obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), and any existing Default (other than a Default or Event of Default in the payment
of the principal of, premium or interest on the Notes) or compliance with any provision of the
Supplemental Indenture, the Subsidiary Guarantees, if any, or the Notes may be waived with the
consent of the Holders of a majority in principal amount of the then outstanding Notes (including,
without limitation, consents obtained in connection with a tender offer or exchange offer for, or
purchase of, the Notes). Without the consent of any Holder of a Note, the Supplemental Indenture
or the Notes may be amended or supplemented: to cure any ambiguity, defect or inconsistency; to
provide for uncertificated Notes in addition to or in place of certificated Notes; to provide for
the assumption of the Issuers’ obligations to Holders of the Notes in the case of a merger or
consolidation or sale of all or substantially all of the Issuers’ assets; to make any change that
would provide any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Supplemental Indenture of any Holder of Notes; to
comply with the requirements of the Commission in order to effect or maintain the qualification of
the Indenture under the Trust Indenture Act, to conform the text of the Supplemental Indenture or
the Notes to any provision of the “Description of Notes” section of the Issuers’ prospectus
supplement dated March 10, 2010 to the base prospectus included in the Issuers’ registration
statement on Form S-3 (File No. 333-165368) relating to the issuance and sale of the Initial Notes,
to the extent that such provision in that “Description of Notes” was intended to be a verbatim
recitation of a provision of the Supplemental Indenture or the Notes; to

A-6

 

provide for the issuance of Additional Notes in accordance with the limitations set forth in
the Supplemental Indenture; or to add collateral to secure the Notes or to add guarantees of the
Issuers’ obligations under the Notes.

     (12) Defaults and Remedies. Events of Default 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; (iii) failure by Suburban Propane for 90 days after notice to comply
with the provisions under Section 10.03 of the Supplemental Indenture; (iv) failure by Suburban
Propane or any of its Restricted Subsidiaries to comply with any other term, covenant or agreement
contained in the Notes or the Supplemental Indenture, other than a default specified in either
clause (i), (ii) or (iii) above, and the default continues for a period of 60 days after written
notice of default requiring the Issuers to remedy the same is given to Suburban Propane by the
Trustee or by Holders of 25% in aggregate principal amount of the Notes then outstanding; (v) the
failure to pay at final maturity (giving effect to any applicable grace periods and any extensions
thereof) the stated principal amount of any Indebtedness of Suburban Propane or any Restricted
Subsidiary of Suburban Propane, or the acceleration of the final stated maturity of any such
Indebtedness if the aggregate principal amount of such Indebtedness, together with the principal
amount of any other such Indebtedness in default for failure to pay principal at final stated
maturity or which has been accelerated, aggregates $15.0 million or more at any time; (vi) a final
judgment or judgments, which is or are non-appealable and non-reviewable or which has or have not
been stayed pending appeal or review or as to which all rights to appeal or review have expired or
been exhausted, shall be rendered against Suburban Propane or any of its Restricted Subsidiaries;
provided such judgment or judgments requires or require the payment of money in excess of
$15.0 million in the aggregate and is not covered by insurance or discharged or stayed pending
appeal or review within 60 days after entry of such judgment; and (vii) certain events of
bankruptcy or insolvency set forth in Section 5.01 of the Supplemental Indenture with respect to
Suburban Propane, Finance Corp. or any Significant Subsidiary of Suburban Propane. In the case of
an Event of Default arising from certain events of bankruptcy or insolvency, with respect to
Suburban Propane, Finance Corp. or any Significant Subsidiary of Suburban Propane, all Notes will
become due and payable immediately without further action or notice. If any other Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the
Notes may declare all the Notes to be due and payable immediately. Subject to certain limitations,
Holders of a majority in principal amount of the Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default if it determines that withholding notice is in their interest, except a
Default or Event of Default relating to the payment of principal or interest. The Holders of a
majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may,
on behalf of the Holders of all of the Notes, rescind an acceleration or waive any existing Default
and its consequences under the Supplemental Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes. The Issuers are required to
deliver to the Trustee annually a statement regarding compliance with the Supplemental Indenture,
and the Issuers are required upon becoming aware of any Default or Event of Default, to deliver to
the Trustee a statement specifying such Default or Event of Default.

     (13) Trustee Dealings with Issuers. The Trustee, any Paying Agent, any Note Registrar
or any other agent of the Issuers, in its individual or any other capacity, may become

A-7

 

the owner or pledgee of Notes or warrants to purchase Notes and, subject to Section 6.08 of
the Supplemental Indenture, may otherwise deal with the Issuers with the same rights it would have
if it were not Trustee, Paying Agent, Note Registrar or such other agent.

     (14) No Recourse Against Others. No past, present or future limited partner, officer,
employee, incorporator, unitholder, stockholder or Affiliate of the Issuers, as such, will have any
liability for any obligations of the Issuers under this Note, the Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

     (15) Authentication. This Note will not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

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

     (17) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on
the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Notes or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     (18) Governing Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Suburban Propane Partners, L.P.

One Suburban Plaza

240 Route 10 West

Whippany, New Jersey 07981

Facsimile: (973) 503-9395

Attention: A. Davin D’Ambrosio, Vice President and Treasurer

A-8

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:

	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)
	 
	 	 
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)

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

	 	 	 
	and irrevocably appoint

	 	 
	 

	 	 
	to transfer this Note on the books of the Issuers. The agent may substitute another to act for
him.

Date:                     

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	     (Sign exactly as your name

     appears on the face of this Note)

	 	 	 
	Signature Guarantee*:

	 	 
	 

	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Issuers pursuant to Section 10.11 or
10.16 of the Supplemental Indenture, check the appropriate box below:

o Section 10.11          o Section 10.16

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Section 10.11 or Section 10.16 of the Supplemental Indenture, state the amount you elect to have
purchased (must be $2,000 or an integral multiple of $1,000 in excess of $2,000):

$                    

Date:                     

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	     (Sign exactly as your name

     appears on the face of this Note)

	 	 	 
	Tax Identification No.:

	 	 
	 

	 	 

	 	 	 
	Signature Guarantee*:

	 	 
	 

	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-10

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a definitive Note, or exchanges of a part of another Global Note or definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Principal Amount	 	 
	 	 	decrease in	 	increase in	 	of this Global	 	Signature of
	 	 	Principal	 	Principal	 	Note following	 	authorized
	 	 	Amount of	 	Amount of	 	such decrease	 	officer of Trustee
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or increase)	 	or Custodian
	 	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-11

 

EXHIBIT B

[FORM OF SUBSIDIARY GUARANTEE]

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Supplemental Indenture and subject to the provisions in the First Supplemental Indenture dated as
of March 23, 2010 (the “Supplemental Indenture”) among Suburban Propane Partners, L.P.
(“Suburban Propane”), Suburban Energy Finance Corp. (“Finance Corp.” and together
with Suburban Propane, the “Issuers”) and The Bank of New York Mellon, as trustee (the
“Trustee”), (a) the due and punctual payment of the principal of, premium and interest on,
the Notes, whether at maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the
due and punctual performance of all other obligations of the Issuers to the Holders or the Trustee
all in accordance with the terms of the Supplemental Indenture and (b) in case of any extension of
time of payment or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary Guarantee and the
Supplemental Indenture are expressly set forth in Article XII of the Supplemental Indenture and
reference is hereby made to the Supplemental Indenture for the precise terms of the Subsidiary
Guarantee. Each Holder of a Note, by accepting the same, (a) agrees to and shall be bound by such
provisions (b) authorizes and directs the Trustee, on behalf of such Holder, to take such action as
may be necessary or appropriate to effectuate the subordination as provided in the Supplemental
Indenture and (c) appoints the Trustee attorney-in-fact of such Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Supplemental Indenture.

	 	 	 	 	 
	 	[NAME OF GUARANTOR(S)]

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

B-1

 

EXHIBIT C

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY GUARANTORS]

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of                                         
        , 20     , among                      (the “Guarantor”) (a subsidiary of Suburban Propane
Partners, L.P. (or its permitted successor)), Suburban Propane Partners, L.P., a Delaware limited
partnership (“Suburban Propane”), Suburban Energy Finance Corp., a Delaware corporation
(“Finance Corp.” and together with Suburban Propane, the “Issuers”), and The Bank
of New York Mellon, as trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Issuers and the Trustee have heretofore executed and delivered to the Trustee a
supplemental indenture, dated as of March 23, 2010 (the “First Supplemental Indenture”),
pursuant to which the Issuers have issued $250,000,000 in principal amount of

 7-3/8% Senior Notes due 2020 (the “Notes”) under an indenture, dated as of March 23,
2010, by and among the Issuers and the Trustee (the “Base Indenture” and, as supplemented
by the First Supplemental Indenture, the “Indenture”);

     WHEREAS, the Indenture provides that under certain circumstances the Guarantor shall execute
and deliver to the Trustee a supplemental indenture pursuant to which the Guarantor shall
unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the
terms and conditions set forth herein (the “Subsidiary Guarantee”); and

     WHEREAS, pursuant to Section 9.06 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. The Guarantor hereby agrees to provide an unconditional
Guarantee on the terms and subject to the conditions set forth in the Subsidiary Guarantee and in
the Indenture including but not limited to Article XII of the First Supplemental Indenture.

     3. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guarantor, as such, shall have any liability
for any obligations of the Issuers or any Guarantor under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of the Notes by accepting a Note

C-1

 

waives and releases all such liability. The waiver and release are part of the consideration
for issuance of the Notes.

     4. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

     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 affect the construction hereof.

     7. Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guarantor and the Issuers.

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

     Dated:                      , 20     

	 	 	 	 	 
	 	[GUARANTOR]

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 
	 
	 	SUBURBAN PROPANE PARTNERS, L.P.

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	SUBURBAN ENERGY FINANCE CORP.

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

C-2

 

	 	 	 	 	 
	 	[EXISTING GUARANTORS]

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	THE BANK OF NEW YORK MELLON, as Trustee

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]