Document:

Exhibit

	
			
	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
	 

	 
	 
	 

	 
	 
	 

	 
	As Issuer,
	 

	 
	 
	 

	 
	 
	 

	 
	ENERGY TRANSFER PARTNERS, L.P.
	 

	 
	 
	 

	 
	 
	 

	 
	As Guarantor, and
	 

	 
	 
	 

	 
	 
	 

	 
	U.S. BANK NATIONAL ASSOCIATION, As Trustee
	 

	 
	 
	 

	 
	 
	 

	 
	—————————————————————
	 

	 
	 
	 

	 
	 
	 

	 
	SIXTEENTH SUPPLEMENTAL INDENTURE
	 

	 
	 
	 

	 
	Dated as of September 21, 2017
	 

	 
	 
	 

	 
	to
	 

	 
	 
	 

	 
	Indenture dated as of December 16, 2005
	 

	 
	 
	 

	 
	—————————————————————
	 

	 
	 
	 

	 
	 
	 

	 
	$1,500,000,000
	 

	 
	 
	 

	 
	5.400% Senior Notes due 2047
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

TABLE OF CONTENTS

	
					
	ARTICLE I. THE NOTES
	2
	

	 
	 
	 
	 

	 
	SECTION 1.1
	Form
	2
	

	 
	SECTION 1.2
	Title, Amount and Payment of Principal and Interest
	2
	

	 
	SECTION 1.3
	Registrar and Paying Agent
	3
	

	 
	SECTION 1.4
	Transfer and Exchange
	3
	

	 
	SECTION 1.5
	Legends
	4
	

	 
	SECTION 1.6
	Guarantee of the Notes
	4
	

	 
	SECTION 1.7
	Defeasance and Discharge
	4
	

	 
	SECTION 1.8
	Additional Covenants
	4
	

	 
	SECTION 1.9
	Additional Default
	7
	

	 
	SECTION 1.10
	Additional Definitions
	8
	

	 
	SECTION 1.11
	Change in Definitions
	11
	

	 
	 
	 
	 

	ARTICLE II. REDEMPTION
	12
	

	 
	 
	 
	 

	 
	SECTION 2.1
	Redemption
	12
	

	 
	 
	 
	 

	ARTICLE III. MISCELLANEOUS PROVISIONS
	12
	

	 
	 
	 
	 

	 
	SECTION 3.1
	Table of Contents, Headings, etc
	12
	

	 
	SECTION 3.2
	Counterpart Originals
	12
	

	 
	SECTION 3.3
	Governing Law
	12
	

	 
	SECTION 3.4
	The Trustee
	13
	

	 
	 
	 
	 

	EXHIBIT A
	Form of Note
	A-1
	

	 
	 
	 
	 

	ANNEX A
	Form of Supplemental Indenture
	Annex-1
	

THIS SIXTEENTH SUPPLEMENTAL INDENTURE dated as of September 21, 2017 is among Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (the “Partnership”), Energy Transfer Partners, L.P. (f.k.a. Sunoco Logistics Partners L.P.), a Delaware limited partnership (the “Guarantor”), and U.S. Bank National Association, a national banking association, as successor trustee (the “Trustee”).  Each capitalized term used but not defined in this Sixteenth Supplemental Indenture shall have the meaning assigned to such term in the Original Indenture (as defined below).
RECITALS:
WHEREAS, the Partnership, the Guarantor and the Subsidiary Guarantors named therein have executed and delivered to the Trustee an Indenture dated as of December 16, 2005 (the “Original Indenture”), providing for the issuance by the Partnership from time to time of its debentures, notes, bonds or other evidences of indebtedness, issued and to be issued in one or more series unlimited as to principal amount (the “Debt Securities”), and the guarantee of the Debt Securities by one or more of the Subsidiary Guarantors and the Guarantor (the “Guarantee”);
WHEREAS, U.S. Bank National Association replaced Citibank, N.A. as the trustee under the Original Indenture, pursuant to the Agreement of Resignation, Appointment and Acceptance dated as of April 9, 2007 among the Partnership, Citibank, N.A. and U.S. Bank National Association;
WHEREAS, on April 28, 2017, the Guarantor completed a merger transaction whereby it changed its name from Sunoco Logistics Partners L.P. to Energy Transfer Partners, L.P.; 
WHEREAS, the Partnership has duly authorized and desires to issue pursuant to the Original Indenture, as supplemented and amended by this Sixteenth Supplemental Indenture (the “Sixteenth Supplemental Indenture” and, together with the Original Indenture, the “Indenture”), a new series of Debt Securities designated the “5.400% Senior Notes due 2047” (the “Notes”), all of such Notes to be guaranteed by the Guarantor as provided in Article XIV of the Original Indenture;
WHEREAS, the Partnership desires to issue the Notes pursuant to Sections 2.01 and 2.03 of the Original Indenture, which Sections permit the execution of supplemental indentures to establish the form and terms of Debt Securities of any series;
WHEREAS, pursuant to Section 9.01 of the Original Indenture, the Partnership and the Guarantor have requested that the Trustee join in the execution of this Sixteenth Supplemental Indenture to establish the form and terms of the Notes; and
WHEREAS, all things necessary have been done to make the Notes, when executed by the Partnership and authenticated and delivered under the Indenture and duly issued by the Partnership, and the Guarantee of the Guarantor, when the Notes are duly issued by the Partnership, the valid 

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obligations of the Partnership and the Guarantor, respectively, and to make this Sixteenth Supplemental Indenture a valid agreement of the Partnership and the Guarantor enforceable in accordance with its terms.
NOW, THEREFORE, the Partnership, the Guarantor and the Trustee hereby agree that the following provisions shall supplement the Original Indenture:
	
	
	ARTICLE I.

	THE NOTES

SECTION 1.1    Form.
The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A to this Sixteenth Supplemental Indenture, which is hereby incorporated into this Sixteenth Supplemental Indenture.  The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Sixteenth Supplemental Indenture and to the extent applicable, the Partnership, the Guarantor and the Trustee, by their execution and delivery of this Sixteenth Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.
The Notes shall be issued upon original issuance in whole in the form of one or more Global Securities (the “Book-Entry Notes”).  Each Book-Entry Note shall represent such of the Outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of Outstanding Notes from time to time endorsed thereon and that the aggregate amount of Outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Book-Entry Note to reflect the amount, or any increase or decrease in the amount, of Outstanding Notes represented thereby shall be made by the Trustee in accordance with written instructions or such other written form of instructions as is customary for the Depositary, from the Depositary or its nominee on behalf of any Person having a beneficial interest in the Book-Entry Note.
The Partnership initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Book-Entry Notes.
SECTION 1.2    Title, Amount and Payment of Principal and Interest.
The Notes shall be entitled the “5.400% Senior Notes due 2047.”  The Trustee shall authenticate and deliver (i) Notes for original issue on the date hereof (the “Original Notes”) in the aggregate principal amount of $1,500,000,000 and (ii) additional Notes for original issue from time to time after the date hereof in such principal amounts as may be specified in the Partnership Order described in this sentence, provided that no such additional Notes may be issued at a price that 

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would cause such Notes to have “original issue discount” within the meaning of the Internal Revenue Code of 1986, as amended, in each case upon a Partnership Order for the authentication and delivery thereof and satisfaction of the other provisions of Section 2.05 of the Original Indenture.  Such order shall specify the amount of the Notes to be authenticated, the date on which the original issue of Notes is to be authenticated, and the name or names of the initial Holder or Holders.  The aggregate principal amount of Notes that may be outstanding at any time may not exceed $1,500,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in Section 2.09 of the Original Indenture).  Any such additional Notes issued in this manner will be consolidated with, and will form a single series with, the Original Notes.
The principal amount of each Note shall be payable on October 1, 2047.  Each Note shall bear interest from the date of original issuance, or the most recent date to which interest has been paid, at the fixed rate of 5.400% per annum.  The dates on which interest on the Notes shall be payable shall be April 1 and October 1 of each year, commencing April 1, 2018 in the case of the Original Notes (the “Interest Payment Dates”).  The regular record date for interest payable on the Notes on any Interest Payment Date shall be March 15 and September 15 (the “Regular Record Date”), as the case may be, next preceding such Interest Payment Date.
Payments of principal of, premium, if any, and interest due on the Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day.  As soon as possible thereafter, the Trustee will make such payments to the Depositary.
SECTION 1.3    Registrar and Paying Agent.
The Partnership initially appoints the Trustee as Registrar and paying agent with respect to the Notes.  The office or agency in the City and State of New York where Notes may be presented for registration of transfer or exchange and the Place of Payment for the Notes shall initially be U.S. Bank National Association, 100 Wall Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust Department.
SECTION 1.4    Transfer and Exchange.
Transfer and Exchange of Notes in Definitive Form.  Notes in definitive form shall be presented or surrendered for registration of transfer or exchange pursuant to Section 2.07 of the Original Indenture.

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Transfer and Exchange of Global Notes.  The transfer and exchange of Book-Entry Notes or beneficial interests therein shall be effected through the Depositary, in accordance with Section 2.15 of the Original Indenture.
SECTION 1.5    Legends.
Each certificate evidencing the Book-Entry Notes shall bear the legend specified in Section 2.15 of the Original Indenture.
SECTION 1.6    Guarantee of the Notes.
In accordance with Article XIV of the Original Indenture, the Notes will be fully, unconditionally and absolutely guaranteed on an unsecured, unsubordinated basis by the Guarantor.  Initially, there will not be any other guarantors of the Notes.
Section 14.04(a) is amended with respect to the Notes by (i) adding the words “with respect to the Notes” after the word “Default” in the final sentence thereof and (ii) substituting the words “Funded Debt” for the word “Debt” in such sentence.
SECTION 1.7    Defeasance and Discharge.
The Notes shall be subject to satisfaction and discharge and to both legal defeasance and covenant defeasance as contemplated by Article XI of the Original Indenture.
SECTION 1.8    Additional Covenants.
Pursuant to Section 9.01 of the Original Indenture, the following covenants of the Partnership are made in relation solely to the Notes by adding the following Sections to Article IV of the Original Indenture:
Section 4.12    Limitations on Liens.
(i)    The Partnership will not, nor will the Partnership permit any Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal Property, or upon any shares of capital stock of any Subsidiary owning or leasing any Principal Property, whether owned or leased on the date of the Sixteenth Supplemental Indenture or thereafter acquired, to secure any Debt of the Partnership or Debt of any other Person, other than the Notes and any other Debt Securities issued under the Indenture, without making effective provision for all the Notes outstanding under the Indenture to be secured equally and ratably with, or prior to, that Debt so long as that Debt is so secured.

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There is excluded from this restriction:
(1)    Permitted Liens;
(2)    any Lien upon any property or asset created at the time of the acquisition of that property or asset by the Partnership or any of its Subsidiaries or within one year after that time to secure all or a portion of the purchase price for that property or asset or Debt incurred to finance the purchase price, whether that Debt was incurred prior to, at the time of or within one year after the date of the acquisition;
(3)    any Lien upon any property or asset to secure all or part of the cost of construction, development, repair or improvements thereon or to secure Debt incurred prior to, at the time of, or within one year after completion of the construction, development, repair or improvements or the commencement of full operations thereof, whichever is later, to provide funds for that purpose;
(4)    any Lien upon any property or asset existing thereon at the time of the acquisition thereof by the Partnership or any of its Subsidiaries, whether or not the obligations secured thereby are assumed by the Partnership or by any of its Subsidiaries; provided, however, that the Lien only encumbers the property or asset so acquired;
(5)    any Lien upon any property or asset of an entity existing thereon at the time that entity becomes a Subsidiary by acquisition, merger or otherwise; provided, however, that the Lien only encumbers the property or asset of that entity at the time it becomes a Subsidiary;
(6)    any Lien upon any property or asset of the Partnership or any of its Subsidiaries in existence on the date the Notes are first issued or provided for pursuant to agreements existing on that date, including, without limitation, pursuant to the revolving credit facility of the Partnership;
(7)    Liens imposed by law or order as a result of any proceeding before any court or regulatory or body that is being contested in good faith, and Liens which secure a judgment or other court-ordered award or settlement as to which the Partnership or the applicable Subsidiary has not exhausted its appellate rights;
(8)    any extension, renewal, refinancing, refunding or replacement, or successive extensions, renewals, refinancings, refundings or replacements, of Liens, in whole or in part, referred to in clauses (1) through (7) above; provided, however, that any extension, renewal, refinancing, refunding or replacement Lien shall be limited to the property or asset covered by the Lien extended, renewed, refinanced, 

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refunded or replaced and that the obligations secured by any extension, renewal, refinancing, refunding or replacement Lien shall be in an amount not greater than the amount of the obligations secured by the Lien extended, renewed, refinanced, refunded or replaced and any expenses of the Partnership and its Subsidiaries, including any premium, incurred in connection with any extension, renewal, refinancing, refunding or replacement; or
(9)    any Lien resulting from the deposit of moneys or evidence of indebtedness in trust for the purpose of defeasing Debt of the Partnership or any of its Subsidiaries.
(ii)    Notwithstanding the preceding, under the Indenture, the Partnership may, and may permit any Subsidiary to, create, assume, incur, or suffer to exist any Lien upon any Principal Property or upon any shares of capital stock of any Subsidiary owning or leasing any Principal Property to secure Debt of the Partnership or any other Person, other than the Notes and any other Debt Securities issued under the Indenture, that is not excepted by clauses (1) through (9) above, without securing the Notes; provided that the aggregate principal amount of all Debt then outstanding secured by that Lien and all similar Liens, together with all Attributable Indebtedness from Sale-Leaseback Transactions (excluding Sale-Leaseback Transactions permitted by clauses (1) through (4), inclusive, of Section 4.13(i)) does not exceed 10% of Consolidated Net Tangible Assets.
Section 4.13    Restrictions on Sale-Leasebacks.
(i)    The Partnership will not, and will not permit any of its Subsidiaries to, engage in the sale or transfer by the Partnership or any of its Subsidiaries of any Principal Property to a Person, other than the Partnership or any of its Subsidiaries, and the taking back by the Partnership or any Subsidiary, as the case may be, of a lease of the Principal Property (a “Sale-Leaseback Transaction”), unless:
(1)    the Sale-Leaseback Transaction occurs within one year from the date of completion of the acquisition of the Principal Property subject thereto or the date of the completion of construction, development or substantial repair or improvement, or commencement of full operations on the Principal Property, whichever is later;
(2)    the Sale-Leaseback Transaction involves a lease for a period, including renewals, of not more than three years;
(3)    the Partnership or the Subsidiary would be entitled to incur Debt secured by a Lien on the Principal Property subject thereto in a principal amount equal to or exceeding the Attributable Indebtedness from the Sale-Leaseback Transaction without equally and ratably securing the Notes; or

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(4)    the Partnership or a Subsidiary, within a one-year period after the Sale-Leaseback Transaction, applies or causes to be applied an amount not less than the Attributable Indebtedness from the Sale-Leaseback Transaction to:
(A)    the prepayment, repayment, redemption, reduction or retirement of any Debt of the Partnership or Debt of any Subsidiary that is not subordinated to the Notes; or
(B)    the expenditure or expenditures for Principal Property used or to be used in the ordinary course of the Partnership’s business or the business of its Subsidiaries.
(ii)    Notwithstanding the preceding, the Partnership may, and may permit any Subsidiary to, effect any Sale-Leaseback Transaction that is not excepted by clauses (1) through (4), inclusive, of Section 4.13(i), provided that the Attributable Indebtedness from the Sale-Leaseback Transaction and any other Sale-Leaseback Transaction that is not so excepted, together with the aggregate principal amount of outstanding Debt, other than the Notes and any other Debt Securities issued under the Indenture, secured by Liens upon Principal Properties, or upon any shares of capital stock of any Subsidiary owning or leasing any Principal Property, and in any case not excepted by clauses (1) through (9), inclusive, of Section 4.12(i), does not exceed 10% of the Consolidated Net Tangible Assets.
Section 4.14    Future Subsidiary Guarantors.
The Partnership shall cause each of its Subsidiaries that guarantees or becomes a co-obligor in respect of any Funded Debt of the Partnership at any time after the date of the Sixteenth Supplemental Indenture (including, without limitation, following any release of such Subsidiary pursuant to Section 14.04 of the Original Indenture from any Guarantee previously provided by it under Article XIV), to cause such Subsidiary to guarantee the Notes, but only to the extent that the Notes are not already guaranteed by such Subsidiary, by executing and delivering to the Trustee, within thirty days thereafter, a supplemental indenture substantially in the form attached to the Sixteenth Supplemental Indenture as Annex A.
SECTION 1.9    Additional Default.
In accordance with Section 9.01(b) of the Original Indenture, Section 6.01 is amended solely with respect to the Notes by deleting paragraph (h) and inserting in lieu thereof:
(h) the acceleration of the maturity of any other Debt of the Partnership or any of its Subsidiaries or a default in the payment of any principal or interest in respect of any other Debt of the Partnership or any of its Subsidiaries having an outstanding principal amount of $25 million or more individually or in the aggregate and such default shall be continuing for a period of 30 days.

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SECTION 1.10    Additional Definitions.
In accordance with Section 9.01 of the Original Indenture, the following terms are inserted into Section 1.01 of the Original Indenture in the appropriate alphabetical order and made applicable only to the Notes:
“Attributable Indebtedness,” when used with respect to any Sale-Leaseback Transaction, means, as at the time of determination, the present value, discounted at the rate set forth or implicit in the terms of the lease included in the transaction, of the total obligations of the lessee for rental payments, other than amounts required to be paid on account of property taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs and other items that constitute payments for property rights, during the remaining term of the lease included in the Sale-Leaseback Transaction, including any period for which the lease has been extended.  In the case of any lease that is terminable by the lessee upon the payment of a penalty or other termination payment, the amount shall be the lesser of the amount determined assuming termination upon the first date the lease may be terminated, in which case the amount shall also include the amount of the penalty or termination payment, but no rent shall be considered as required to be paid under the lease subsequent to the first date upon which it may be so terminated, or the amount determined assuming no termination.
“Commodity Trading Obligations” with respect to any Person, means the obligations of such Person under (1) any commodity swap agreement, commodity future agreement, commodity option agreement, commodity cap agreement, commodity floor agreement, commodity collar agreement, commodity hedge agreement, and any put, call or other agreement or arrangement, or combination thereof, designed to protect such Person against fluctuations in commodity prices or (2) any commodity swap agreement, commodity future agreement, commodity option agreement, commodity hedge agreement, and any put, call or other agreement or arrangement, or combination thereof (including an agreement or arrangement to hedge foreign exchange risks) in respect of commodities entered into by the Partnership pursuant to asset optimization and risk management policies and procedures adopted in good faith by the Board of Directors.
“Consolidated Net Tangible Assets” means, at any date of determination, the total amount of assets after deducting: (1) all current liabilities, excluding:
(A)    any current liabilities that by their terms are extendable or renewable at the option of the obligor to a time more than one year after the time as of which the amount is being computed; and
(B)    current maturities of long-term debt; and

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(2)    the value, net of any applicable reserves, of all goodwill, trade names, trademarks, patents and other like intangible assets,
all as set forth, or as on a pro forma basis would set forth, on the consolidated balance sheet of the Partnership for its most recently completed fiscal quarter, prepared in accordance with GAAP.
“Funded Debt” means all Debt: (1) maturing one year or more from the date of its creation; (2) directly or indirectly renewable or extendable, at the option of the debtor, by its terms or by the terms of any instrument or agreement relating to the Debt, to a date one year or more from the date of its creation; or (3) under a revolving credit or similar agreement obligating the lender or lenders to extend credit over a period of one year or more.
“Notes” means the Partnership’s 5.400% Senior Notes due 2047.  
“Permitted Hedging Obligations” of any Person shall mean (1) hedging obligations entered into in the ordinary course of business and in accordance with such Person’s established risk management policies that are designed to protect such Person against, among other things, fluctuations in interest rates or currency exchange rates and which in the case of agreements relating to interest rates shall have a notional amount no greater than the payments due with respect to the Debt being hedged thereby and (2) Commodity Trading Obligations.
“Permitted Liens” means:
(1)    Liens upon rights of way for pipeline purposes;
(2)    any statutory or governmental Lien or Lien arising by operation of law, or any mechanic’s, repairman’s, materialman’s, supplier’s, carrier’s, landlord’s, warehouseman’s or similar Lien incurred in the ordinary course of business which is not yet due or which is being contested in good faith by appropriate proceedings and any undetermined Lien which is incidental to construction, development, improvement or repair;
(3)    the right reserved to, or vested in, any municipality or public authority by the terms of any right, power, franchise, grant, license, permit or by any provision of law, to purchase or recapture or to designate a purchaser of, any property;
(4)    Liens of taxes and assessments which are (A) for the then current year, (B) not at the time delinquent, or (C) delinquent but the validity of which is being contested at the time by the Partnership or any of its Subsidiaries in good faith;

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(5)    Liens of, or to secure performance of, leases, other than capital leases;
(6)    any Lien upon, or deposits of, any assets in favor of any surety company or clerk of court for the purpose of obtaining indemnity or stay of judicial proceedings;
(7)    any Lien upon property or assets acquired or sold by the Partnership or by any of its Subsidiaries resulting from the exercise of any rights arising out of defaults on receivables;
(8)    any Lien incurred in the ordinary course of business in connection with worker’s compensation, unemployment insurance, temporary disability, social security, retiree health or similar laws or regulations or to secure obligations imposed by statute or governmental regulations;
(9)    any Lien in favor of the Partnership or any of its Subsidiaries;
(10)    any Lien in favor of the United States of America or any state of the United States, or any department, agency or instrumentality or political subdivision of the United States of America or any state of the United States, to secure partial, progress, advance, or other payments pursuant to any contract or statute, or any Debt incurred by the Partnership or any of its Subsidiaries for the purpose of financing all or any part of the purchase price of, or the cost of constructing, developing, repairing or improving, the property or assets subject to the Liens;
(11)    any Lien securing industrial development, pollution control or similar revenue bonds;
(12)    any Lien securing debt of the Partnership or any of its Subsidiaries, all or a portion of the net proceeds of which are used, substantially concurrent with the funding thereof (and for purposes of determining “substantial concurrence,” taking into consideration, among other things, required notices to be given to Holders of Outstanding Notes in connection with the refunding, refinancing or repurchase, and the required corresponding durations thereof), to refinance, refund or repurchase all Outstanding Notes, including the amount of all accrued interest thereon and reasonable fees and expenses and premium, if any, incurred by the Partnership or any of its Subsidiaries in connection therewith;
(13)    Liens in favor of any Person to secure obligations under the provisions of any letters of credit, bank guarantees, bonds or surety obligations required or requested by any governmental authority in connection with any contract or statute; 

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(14)    any easements, exceptions or reservations in any property or assets of the Partnership or any Subsidiary granted or reserved for the purpose of pipelines, roads, the removal of oil, gas, coal or other minerals, and other like purposes, or for the joint or common use of real property, facilities and equipment, which are incidental to, and do not materially interfere with, the ordinary conduct of its business or the business of the Partnership and its Subsidiaries, taken as a whole; 
(15)    Liens securing Permitted Hedging Obligations; or
(16)    any Lien upon or deposits of any assets to secure performance of bids, trade contracts, leases or statutory obligations.
“Principal Property” means, whether owned or leased on the date of the Sixteenth Supplemental Indenture or thereafter acquired, any pipeline, terminal or other logistics property or asset of the Partnership or any of its Subsidiaries, including any related property or asset employed in the transportation, distribution, storage, terminalling, processing or marketing of crude oil, refined products (including gasoline, diesel fuel, jet fuel, heating oil, distillates, liquefied petroleum gas, natural gas liquids, blend stocks, ethanol, xylene, toluene and petrochemical feedstocks) or fuel additives, that is located in the United States of America or any territory or political subdivision thereof, except:
(1) any of those properties or assets consisting of inventories, furniture, office fixtures and equipment, including data processing equipment, vehicles and equipment used on, or with, vehicles; and
(2) any of those properties or assets which, in the opinion of the board of directors of the General Partner, is not material in relation to the activities of the Partnership or its Subsidiaries, taken as a whole.
“Sale-Leaseback Transaction” has the meaning attributed thereto in Section 4.13.
“Sixteenth Supplemental Indenture” means the Sixteenth Supplemental Indenture among the Partnership, the Guarantor and the Trustee dated as of September 21, 2017 relating to the Partnership’s 5.400% Senior Notes due 2047.
SECTION 1.11    Change in Definitions.
Section 1.01 is amended with respect to the Notes by  replacing the definition of “General Partner,” including references to “General Partner” in the definition of “Principal Property” in Section 1.10 of this Supplemental Indenture, in its entirety with the following:

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“General Partner” means Energy Transfer Partners, L.L.C., a Delaware limited liability company, and its successors as general partner of Energy Transfer Partners GP, L.P., a Delaware limited partnership, and its successors as the general partner of the Partnership.
	
	
	ARTICLE II.

	REDEMPTION

SECTION 2.1    Redemption.
The Partnership shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption, sinking fund or analogous provisions or at the option of a Holder thereof.  The Partnership, at its option, may redeem the Notes in accordance with the provisions of paragraph 5 of the Notes and Article III of the Original Indenture.
	
	
	ARTICLE III.

	MISCELLANEOUS PROVISIONS

SECTION 3.1    Table of Contents, Headings, etc.
The table of contents and headings of the Articles and Sections of this Sixteenth Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.
SECTION 3.2    Counterpart Originals.
The parties may sign any number of copies of this Sixteenth Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  The exchange of copies of this Sixteenth Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Sixteenth Supplemental Indenture as to the parties hereto and may be used in lieu of the original Sixteenth Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
SECTION 3.3    Governing Law.
THIS SIXTEENTH SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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SECTION 3.4    The Trustee.
The recitals contained herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the Partnership and the Guarantor, and the Trustee does not assume any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Partnership of the Notes or the proceeds thereof.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Sixteenth Supplemental Indenture to be duly executed as of the day and year first above written.
	
				
	 
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	SUNOCO LOGISTICS PARTNERS GP LLC, 
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	/s/ Thomas E. Long
	 

	 
	 
	Thomas E. Long
	 

	 
	 
	Chief Financial Officer
	 

	
				
	 
	ENERGY TRANSFER PARTNERS, L.P.
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	Energy Transfer Partners GP, L.P.
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

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

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	/s/ Thomas E. Long
	 

	 
	 
	Thomas E. Long
	 

	 
	 
	Chief Financial Officer
	 

	
				
	 
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Vachon
	 

	 
	 
	Melissa Vachon
	 

	 
	 
	Vice President
	 

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Exhibit A
FORM OF NOTE
[FACE OF SECURITY]
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, NEW   YORK, NEW   YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE   & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.
	
		
	No. R-

	Principal Amount
$_______________, which amount may be 
increased or decreased by the Schedule 
of Increases  and Decreases in Global Security attached hereto.

SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
5.400% SENIOR NOTE DUE 2047
CUSIP 86765B AV1
SUNOCO LOGISTICS PARTNERS OPERATIONS L.P., a Delaware limited partnership (the “Partnership,” which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal sum of _______________U.S. dollars ($_______________), or such greater or lesser principal sum as is shown on the attached Schedule of Increases and Decreases in Global Security, on October 1, 

A-1

2047 in such coin and currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest at an annual rate of 5.400% payable on April 1 and October 1 of each year, to the person in whose name the Security is registered at the close of business on the record date for such interest, which shall be the preceding March 15 and September 15 (each, a “Regular Record Date”), respectively, payable commencing on April 1, 2018, with interest accruing from September 21, 2017, or the most recent date to which interest shall have been paid.
Reference is made to the further provisions of this Security set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.
The statements in the legends set forth in this Security are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend. 
This Security is issued in respect of a series of Debt Securities of an initial aggregate principal amount of $1,500,000,000, designated as the 5.400% Senior Notes due 2047 of the Partnership, which are governed by the Indenture dated as of December 16, 2005 (the “Original Indenture”), among the Partnership, Energy Transfer Partners, L.P. (f.k.a. Sunoco Logistics Partners L.P.), a Delaware limited partnership (the “Guarantor”), the Subsidiary Guarantors named therein and Citibank, N.A., as initial trustee, as supplemented and amended by the Sixteenth Supplemental Indenture (herein so called) dated as of September 21, 2017 among the Partnership, the Guarantor and U.S. Bank National Association, as successor trustee (the “Trustee”).  The Original Indenture, as supplemented and amended from time to time, is herein referred to as the “Indenture.”  The terms of the Indenture are incorporated herein by reference.  This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.
This Security shall not be valid or become obligatory for any purpose until the Trustee’s Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

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IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole General Partner.
	
				
	Dated: September 21, 2017
	 
	 
	 

	 
	 
	 
	 

	 
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	SUNOCO LOGISTICS PARTNERS GP LLC, 
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:
This is one of the Debt Securities of the series designated herein referred to in the within-mentioned Indenture.
	
				
	 
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Authorized Signatory
	 

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[REVERSE OF SECURITY] 
SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
5.400% SENIOR NOTE DUE 2047
This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Partnership, the Guarantor and the Holders of the Debt Securities.  The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture.  This Security is one of a series designated as the 5.400% Senior Notes due 2047 of the Partnership, in initial aggregate principal amount of $1,500,000,000 (the “Securities”).
1.    Interest.
The Partnership promises to pay interest on the principal amount of this Security at the rate of 5.400% per annum.
The Partnership will pay interest semi-annually on April 1 and October 1 of each year (each an “Interest Payment Date”), commencing April 1, 2018.  Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from September 21, 2017.  Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.  The Partnership shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the same rate per annum, in each case to the extent lawful.
2.    Method of Payment.
The Partnership shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date.  Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a special record date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully 

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provided in the Indenture.  The Partnership shall pay principal, premium, if any, and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts.  Payments in respect of a Global Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the Depositary.  Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Partnership maintained for such purpose within The City of New York, which initially will be U.S. Bank National Association, 100 Wall Street, Suite 1600, New York, New York 10005 Attention: Corporate Trust Department, or, at the option of the Company, payment of interest may be made by check mailed to the Holders on the relevant record date at their addresses set forth in the Debt Security register of Holders or at the option of the Holder, payment of interest on Securities in definitive form will be made by wire transfer of immediately available funds to any account maintained in the United States, provided such Holder has requested such method of payment and provided timely wire transfer instructions to the paying agent.  The Holder must surrender this Security to a paying agent to collect payment of principal.
3.    Paying Agent and Registrar.
Initially, U.S. Bank National Association will act as paying agent and Registrar.  The Partnership may change any paying agent or Registrar at any time upon notice to the Trustee and the Holders.  The Partnership may act as paying agent.
4.    Indenture.
This Security is one of a duly authorized issue of Debt Securities of the Partnership issued and to be issued in one or more series under the Indenture.
Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.  The terms of the Securities include those stated in the Original Indenture, those made part of the Indenture by reference to the TIA, as in effect on the date of the Original Indenture, and those terms stated in the Sixteenth Supplemental Indenture.  The Securities are subject to all such terms, and Holders of Securities are referred to the Original Indenture, the Sixteenth Supplemental Indenture and the TIA for a statement of them.  The Securities of this series are general unsecured obligations of the Company limited to an initial aggregate principal amount of $1,500,000,000; provided, however, that the authorized aggregate principal amount of such series may be increased from time to time as provided in the Sixteenth Supplemental Indenture.
5.    Optional Redemption.
The Securities are redeemable, at the option of the Partnership, at any time prior to April 1, 2047, (the date that is six months prior to the Stated Maturity) in whole, or from time to time in 

A-5

part, at a redemption price (the “Make-Whole Price”) equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (at the rate in effect on the date of calculation of the redemption price) on the Securities to be redeemed that would be due if the Securities matured on April 1, 2047 (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 40 basis points; plus, in either case, accrued and unpaid interest to the Redemption Date.
The actual Make-Whole Price, calculated as provided above, shall be calculated and certified to the Trustee and the Partnership by the Independent Investment Banker.  For purposes of determining the Make-Whole Price, the following definitions are applicable:
“Treasury Rate” means the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third business day preceding the Redemption Date.
“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed, calculated as if the maturity date of the Securities were April 1, 2047  (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Securities.
“Comparable Treasury Price” means with respect to any Redemption Date (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
“Independent Investment Banker” means any of Deutsche Bank Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC as specified by the Partnership, and any successor firm or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Partnership.
“Primary Treasury Dealer” means a primary U.S. Government securities dealer in New York City. 

A-6

“Reference Treasury Dealer” means a Primary Treasury Dealer selected by each of Deutsche Bank Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC or an affiliate or successor of the foregoing, and, at the Partnership’s option, one or more additional Primary Treasury Dealers; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Partnership will substitute therefor another Primary Treasury Dealer.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such Redemption Date.
Additionally, the Securities are redeemable, at the option of the Partnership, at any time on or after April 1, 2047 (the date that is six months prior to the Stated Maturity) in whole, or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to such Redemption Date.
Except as set forth above, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.
Securities called for optional redemption become due on the Redemption Date.  Notices of optional redemption will be mailed at least 15 but not more than 60 days before the Redemption Date to each Holder of the Securities to be redeemed at its registered address.  The notice of optional redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the redemption price, the method of calculating such redemption price (if the Make-Whole Price) and the place(s) that payment will be made upon presentation and surrender of Securities to be redeemed.  Unless the Partnership defaults in payment of the redemption price, interest will cease to accrue on the Redemption Date with respect to any Securities that have been called for optional redemption.  If less than all the Securities are redeemed at any time, the Trustee will select the Securities to be redeemed on a pro rata basis, by lot or by any other method the Trustee deems fair and appropriate; provided, however, that if at the time of redemption such Securities are represented by a Global Security, the Depositary shall determine, in accordance with its procedures, the principal amount of such Securities held by each beneficial owner to be redeemed.
The Securities may be redeemed in part in minimum principal amounts of $2,000 and integral multiples of $1,000 in excess thereof.  Any such redemption will also comply with Article III of the Indenture.

A-7

6.    Denominations; Transfer; Exchange.
The Securities are to be issued in registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture.  The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.
7.    Person Deemed Owners.
The registered Holder of a Security may be treated as the owner of it for all purposes.
8.    Amendment; Supplement; Waiver.
Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the Outstanding Debt Securities of each series affected.  Without consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to, among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to make any other change that does not adversely affect the rights of any Holder of a Security.  Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.
9.    Defaults and Remedies.
Certain events of bankruptcy or insolvency are Events of Default that will result in the principal amount of the Securities, together with premium, if any, and accrued and unpaid interest thereon, becoming due and payable immediately upon the occurrence of such Events of Default.  If any other Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities then Outstanding may declare the principal amount of all the Securities, together with premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the manner and with the effect provided in the Indenture.  Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made, the Holders of a majority in principal amount of the Outstanding Securities, by written notice to the Trustee, may rescind such declaration and annul its consequences if the rescission would not conflict with any judgment or decree of a court already rendered and if all Events of Default with respect to the Securities, other than the nonpayment of the principal, premium, if any, or interest which has become due solely by such acceleration, shall have been cured or shall have been waived.  No such rescission 

A-8

shall affect any subsequent default or shall impair any right consequent thereon.  Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture.  The Trustee may require reasonable indemnity or security before it enforces the Indenture or the Securities.  Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.
10.    Trustee Dealings with Partnership.
The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Partnership or its Affiliates or any subsidiary of the Partnership’s Affiliates, and may otherwise deal with the Company or its Affiliates as if it were not the Trustee.
11.    Authentication.
This Security shall not be valid until the Trustee signs the certificate of authentication on the other side of this Security.
12.    Abbreviations and Defined Terms.
Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).
13.    CUSIP Numbers.
Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities.  No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.
14.    Absolute Obligation.
No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Partnership, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

A-9

15.    No Recourse.
The General Partner and its directors, officers, employees and members, as such, shall have no liability for any obligations of any Subsidiary Guarantor, the Guarantor or the Partnership under the Securities, the Indenture or any Guarantee or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting the Securities waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Securities.
16.    Governing Law.
This Security shall be construed in accordance with and governed by the laws of the State of New York.
17.    Guarantee.
The Securities are fully and unconditionally guaranteed on an unsecured, unsubordinated basis by the Guarantor as set forth in Article XIV of the Indenture, as noted in the Notation of Guarantee affixed to this Security, and under certain circumstances set forth in the Sixteenth Supplemental Indenture one or more Subsidiaries of the Partnership may be required to join in such Guarantee.
18.    Reliance.
The Holder, by accepting this Security, acknowledges and affirms that (i) it has purchased the Security in reliance upon the separateness of the Guarantor, the general partner of the Guarantor and the General Partner from each other and from any other Persons, and (ii) the Guarantor, the general partner of the Guarantor and the General Partner have assets and liabilities that are separate from those of each other and of any other Persons.

A-10

NOTATION OF GUARANTEE
The Guarantor (which term includes any successor Person under the Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Securities and all other amounts due and payable under the Indenture and the Securities by the Partnership.
The obligations of the Guarantor to the Holders of Securities and to the Trustee pursuant to its Guarantee and the Indenture are expressly set forth in Article XIV of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee.
	
				
	 
	ENERGY TRANSFER PARTNERS, L.P.
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	Energy Transfer Partners GP, L.P.
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

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

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

A-11

ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:
TEN CO    –    as tenants in common
TEN ENT    –    as tenants by entireties
JT TEN    –    as joint tenants with right of survivorship and not as tenants in common
UNIF GIFT MIN ACT – 
(Cust.)
Custodian for:
(Minor)
under Uniform Gifts to Minors Act of
(State)
Additional abbreviations may also be used though not in the above list.

A-12

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

	Please print or type name, Social Security or other identifying number and address including postal zip code of assignee

	
	
	 

	the within Security and all rights thereunder, hereby irrevocably constituting and appointing 

	
	
	 

	to transfer said Security on the books of the Partnership, with full power of substitution in the premises.

	
			
	 
	 
	 

	Dated
	 
	Registered Holder

	
		
	Signature Guarantee:*
	 

*   Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Trustee, which requirements include membership or participation in the Securities Transfer Association Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

A-13

SCHEDULE OF INCREASES OR DECREASES 
IN GLOBAL SECURITY
The following increases or decreases in this Global Security have been made:

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

	 
	 
	 
	 
	 
	 
	 
	 
	 

A-14

Annex A
FORM OF SUPPLEMENTAL INDENTURE
This Supplemental Indenture, dated as of                      (this “Supplemental Indenture”), is among [name of future Subsidiary Guarantor] (the “Additional Guarantor”), Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (the “Partnership”), Energy Transfer Partners, L.P. (f.k.a. Sunoco Logistics Partners L.P.), a Delaware limited partnership (the “Guarantor”), each other then existing Subsidiary Guarantor, if any, under the Indenture referred to below, and U.S. Bank National Association, as Trustee under the Indenture referred to below.
WITNESSETH:
WHEREAS, the Partnership, the Guarantor, the Subsidiary Guarantors named therein and the Trustee have heretofore executed and delivered an Indenture, dated as of December 16, 2005 (as supplemented and amended by the Sixteenth Supplemental Indenture thereto dated as of September 21, 2017, the “Indenture”), providing for the issuance of an aggregate principal amount of $1,500,000,000 of 5.400% Senior Notes due 2047 of the Partnership (the “Securities”);
WHEREAS, Section 4.14 of the Indenture provides that under certain circumstances the Partnership is required to cause the Additional Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the Additional Guarantor shall unconditionally guarantee the Securities pursuant to the Guarantee set forth in Section 14.01 of the Indenture on the terms and conditions set forth herein; and
WHEREAS, pursuant to Section 9.01(g) of the Indenture, the Partnership, the Guarantor, any other then existing Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder of the Securities;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Additional Guarantor, the Partnership, the Guarantor, [the existing Subsidiary Guarantors] and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:
ARTICLE I 
DEFINITIONS
Section 1.01  Defined Terms.  As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recitals hereto are used herein as therein defined.  The words “herein,” “hereof’ and “hereby’ and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

Annex-1

ARTICLE II
AGREEMENT TO BE BOUND; GUARANTEE
Section 2.01  Agreement to be Bound.  The Additional Guarantor hereby becomes a party to the Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.
The Additional Guarantor agrees to be bound by all of the provisions of the Indenture applicable to a Subsidiary Guarantor and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.
Section 2.02  Guarantee.  The Additional Guarantor hereby fully, unconditionally and absolutely guarantees, jointly and severally with any other Subsidiary Guarantor and the Guarantor, to each Holder of the Securities and the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on the Securities and all other amounts due and payable under the Indenture and the Securities by the Partnership, when and as such principal, premium, if any, and interest shall become due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, according to the terms of the Securities and Article XIV of the Indenture.
ARTICLE III 
MISCELLANEOUS
Section 3.01  Parties.  Nothing expressed or mentioned herein is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable tight, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained.
Section 3.02  Governing Law.  This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.
Section 3.03  Severability Clause.  In case any provision in this Supplemental Indenture 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 and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.
Section 3.04  Ratification of Indenture; Supplemental Indenture Part of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore 

Annex-2

or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.
Section 3.05  Counterparts.  The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 3.06  Headings.  The headings of the Articles and the sections in this Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.
Section 3.07 The Trustee. The recitals contained herein shall be taken as the statements of the Company and the Guarantors, and the Trustee does not assume any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.
	
				
	 
	[ADDITIONAL GUARANTOR]
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	
				
	 
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	SUNOCO LOGISTICS PARTNERS GP LLC, 
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

Annex-3

	
				
	 
	ENERGY TRANSFER PARTNERS, L.P.
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	Energy Transfer Partners GP, L.P.
	 

	 
	 
	its general partner
	 

	 
	 
	 
	 

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

	 
	 
	its general partner
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	
				
	 
	[EACH EXISTING SUBSIDIARY GUARANTOR]
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	
				
	 
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

Annex-4EX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of September 18, 2017 (this “Amendment”),
by and among CARGO AIRCRAFT MANAGEMENT, INC., a Florida corporation (the “Borrower”), AIR TRANSPORT SERVICES GROUP, INC., a Delaware corporation (“Holdings”), each of the Guarantors party hereto, each of the
financial institutions party hereto as “Lenders” and SUNTRUST BANK, in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower, Holdings, the Lenders and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement
dated as of May 31, 2016, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of March 31, 2017 (as so amended, the “Credit Agreement”); and 

WHEREAS, the Borrower has requested certain amendments and other modifications to the Credit Agreement described herein; and 

WHEREAS, the Lenders party to this Amendment and the Administrative Agent are willing to so amend or otherwise modify such terms and
provisions of the Credit Agreement on and subject to the terms and conditions herein. 
 NOW, THEREFORE, for and in consideration of the
above premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows: 

1. Defined Terms. Capitalized terms which are used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement. 
 2. Amendments to Credit Agreement. 

(a) Section 1.1. of the Credit Agreement is hereby amended by: 

(i) adding the following new definitions in the appropriate alphabetical order: 

“Consolidated Secured Debt” shall mean, as at any date of determination, the aggregate amount of all
Indebtedness of Holdings and its Subsidiaries determined on a consolidated basis in accordance with GAAP that is secured by a Lien on any asset or property of Holdings or any of its Subsidiaries. 

“Permitted Bond Hedge Transaction” means any call or capped 

 
call option (or substantively equivalent derivative transaction) relating to Holdings’ common stock (or other securities or property following a merger event or other change of the common
stock of Holdings) purchased by Holdings in connection with the issuance of any Permitted Convertible Indebtedness; provided that the purchase price for such Permitted Bond Hedge Transaction, less the proceeds received by Holdings from the
sale of any related Permitted Warrant Transaction, does not exceed the net proceeds received by Holdings from the issuance of such Permitted Convertible Indebtedness in connection with such Permitted Bond Hedge Transaction. 

“Permitted Convertible Indebtedness” means indebtedness of Holdings permitted to be incurred pursuant to
Section 9.4(i) that is convertible into common stock of Holdings (or other securities or property following a merger event or other change of the common stock of Holdings) and/or cash (in an amount determined by reference to the price of such
common stock). For the avoidance of doubt, the amounts outstanding under any Permitted Convertible Indebtedness will be determined for purposes of the Credit Documents without giving effect to any treatment in respect of convertible debt instruments
under Accounting Standards Codification Subtopics 470-20 or 815-40 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar
result or effect) to value any such Permitted Convertible Indebtedness in a reduced or bifurcated manner as described therein, and such Permitted Convertible Indebtedness shall at all times be valued at the full stated principal amount thereof. 

“Permitted Warrant Transaction” means any call option, warrant or right to purchase (or substantively
equivalent derivative transaction) relating to Holdings’ common stock (or other securities or property following a merger event or other change of the common stock of Holdings) and/or cash (in an amount determined by reference to the price of
such common stock) sold by Holdings substantially concurrently with any purchase by Holdings of a related Permitted Bond Hedge Transaction. 

“Second Amendment” shall mean the Second Amendment to Amended and Restated Credit Agreement dated as of
September 18, 2017 to be effective as of the Second Amendment Effective Date. 
 “Second Amendment
Effective Date” shall mean the date on which all conditions to effectiveness in Section 3 of the Second Amendment are satisfied. 

“Secured Leverage Ratio” shall mean at any date the ratio of Consolidated Secured Debt of Holdings and its
Subsidiaries at such date to 

  
 -2- 

 
Consolidated EBITDA of Holdings and its Subsidiaries for the Test Period ending on or immediately preceding such date. 

(ii) adding the following sentence to the end of the definition of “Indebtedness”: 

“Notwithstanding anything to the contrary in the foregoing, any Permitted Bond Hedge Transaction and any Permitted Warrant Transaction, in
each case, shall not constitute Indebtedness of the Borrower.” 
 (iii) adding the following proviso to the definition
of “Change in Control” immediately before the period at the end of the first sentence thereof: 
 “; provided, however,
that an underwriter, initial purchaser, investor or holder of any Permitted Convertible Indebtedness or Permitted Warrant Transaction shall be deemed to not directly or indirectly acquire or own the shares of Capital Stock of Holdings issuable upon
conversion or exercise, as applicable, thereof for the purposes of clause (i)(a) above unless and until such shares of Capital Stock are “beneficially owned” by such person within the meaning of Section 13(d) of the 1934 Act and the
rules and regulations promulgated thereunder”. 
 (iv) adding the following proviso to the definition of
“Obligations” immediately before the period at the end thereof: 
 “; provided, however, that any obligations under any
Permitted Bond Hedge Transaction or any Permitted Warrant Transaction, in each case, shall not constitute Obligations”. 

(v) adding the following proviso to the definition of “Contingent Obligations” immediately before the period at the
end of the first sentence thereof: 
 “; provided, however, that any obligations under any Permitted Bond Hedge Transaction or
any Permitted Warrant Transaction, in each case, shall not constitute Contingent Obligations”. 
 (vi) adding the
following proviso to the definition of “Lender-Related Hedge Provider” immediately before the period at the end of the first sentence thereof: 

“; provided, however, that any Permitted Bond Hedge Transaction or any Permitted Warrant Transaction, in each case, shall not
constitute transactions with a Lender-Related Hedge Provider”. 

  
 -3- 

 (b) The Credit Agreement is further amended by changing all references to “Total Leverage
Ratio” in the defined term “Applicable Margin” in Section 1.1 thereof to “Secured Leverage Ratio”. 

(c) The Credit Agreement is hereby further amended by adding the words “the Secured Leverage Ratio,” immediately following the
reference to “the Total Leverage Ratio,” in the sixth line of Section 8.1(c) thereof. 
 (d) The Credit Agreement is hereby
further amended by deleting clause (i) of Section 9.4 thereof in its entirety and substituting in lieu thereof the following: 

“(i) other Indebtedness of Holdings and its Subsidiaries in an aggregate outstanding principal amount not to exceed at any
time $300,000,000.” 
 (e) The Credit Agreement is hereby further amended by adding the following to the end of clause (f) to
Section 9.5 and prior to the “;”: 
 “and the entry into (including any payments of premiums in
connection therewith) and performance of obligations under any Permitted Bond Hedge Transaction” 
 (f) The Credit Agreement is hereby
further amended by adding the following to the end of Section 9.6: 
 “Notwithstanding anything to the contrary in
the foregoing, the entry into, performance of obligations under and any amendment, modification or change expressly required to be made under any Permitted Convertible Indebtedness, Permitted Bond Hedge Transaction and Permitted Warrant Transaction
(including, for the avoidance of doubt, giving effect to anti-dilution and similar adjustments pursuant to the respective terms thereof) will be deemed to not be materially adverse to the interests of the Lenders.” 

(g) The Credit Agreement is hereby further amended by deleting clause (iii) of Section 9.7(a) thereof in its entirety and
substituting in lieu thereof the following: 
 “(iii) Holdings may pay (X) cash Dividends to the holders of its
common stock after the Closing Date and (Y) cash Dividends in excess of the amounts expressly permitted to be paid pursuant to clause (v) immediately below after the Closing Date in connection with Permitted Convertible Indebtedness and
Permitted Warrant Transactions; provided that, in each case of the foregoing clauses (X) and (Y): (w) no Default or Event of Default is then in existence or would result from such payment of Dividends, (x) after giving effect
to the payment of such Dividends and any related Borrowing, (I) the Secured Leverage Ratio of Holdings is less than 3.00 to 1.00 for the Test Period ending on, or most recently ended prior to, the proposed making of such Dividend payment, such
compliance 

  
 -4- 

 
determined on a pro forma basis as if such Borrowing and such Dividend payments occurred on the first day of such Test Period and (II) the Total Leverage Ratio of Holdings is less
than 3.50 to 1.00 for the Test Period ending on, or most recently ended prior to, the proposed making of such Dividend payment, such compliance determined on a pro forma basis as if such Borrowing and such Dividend payments occurred on the
first day of such Test Period, (y) after giving effect to such payment of Dividends and any related Borrowing, Holdings and its Subsidiaries shall be in compliance with Section 9.12,
Section 9.13, Section 9.14 and Section 9.15, such compliance determined on a pro forma basis giving effect to such Borrowing and such Dividend payments and
(z) the aggregate amount of all cash Dividends paid under this clause (iii) shall not exceed $100,000,000 in any Fiscal Year of Holdings; and” 

(h) The Credit Agreement is hereby further amended by adding the following new clause (v) to Section 9.7(a): 

“(v) Holdings may (a) enter into (including any payments of premiums in connection therewith) Permitted Bond Hedge
Transactions and Permitted Warrant Transactions; (b) make any payment in connection with Permitted Convertible Indebtedness or Permitted Warrant Transactions by delivery of shares of its common stock upon settlement thereof (together with cash
in lieu of fractional shares) or set-off, netting and/or payment of an early termination payment or similar payment thereunder upon any early termination or cancellation thereof; (c) make payments of
interest required to be made pursuant to the terms of any Permitted Convertible Indebtedness; (d) make any payment in cash to holders of Permitted Convertible Indebtedness upon conversion thereof up to the original principal amount thereof and
any payment of cash in excess of the original principal amount thereof (together with cash in lieu of any fractional shares) to the extent that an amount corresponding to such excess is receivable in cash substantially contemporaneously (or a
commercially reasonable period of time prior to or after such cash payment to such holders) from the other parties to a Permitted Bond Hedge Transaction relating to such Permitted Convertible Indebtedness; (e) make cash payments to satisfy
obligations in respect of Permitted Warrant Transactions solely to the extent Holdings does not have the option of satisfying such payment obligations through the issuance of Holdings’ common stock or is otherwise required to satisfy such
payment obligations in cash, it being understood and agreed that any payment made in cash in connection with Permitted Warrant Transactions by set-off, netting and/or payment of an early termination payment or
similar payment thereunder upon any early termination thereof, in each case, after using commercially reasonable efforts to satisfy such obligation (or the portion thereof remaining after giving effect to any netting or set-off against termination or similar payments under an applicable Permitted Bond Hedge Transaction) by delivery of shares of Holdings’ common stock shall be deemed to be a payment obligation required to be
satisfied in cash; and (f) receive shares of its own common stock and/or cash on account of 

  
 -5- 

 
settlements and/or terminations or cancellations of any Permitted Bond Hedge Transactions;” 

(i) Section 9.11(a) of the Credit Agreement is hereby amended by deleting the phrase “and (ii)” contained therein and replacing
it with the phrase “, (ii)” and adding the following clause at the end thereof immediately before the semicolon at the end thereof: 

“and (iii) under any Permitted Convertible Indebtedness, Permitted Bond Hedge Transaction or any Permitted Warrant
Transaction” 
 (j) The Credit Agreement is hereby further amended by deleting Section 9.13 thereof in its entirety and
substituting in lieu thereof the following: 
 “Section 9.13 Leverage Ratios. 

(a) Holdings will not permit the Secured Leverage Ratio at the end of any Test Period ending on March 31, June 30,
September 30 and December 31 of any calendar year to be more than 3.50 to 1.00. For the purposes of calculating the financial covenant set forth in this clause (a), the Relief Fund shall be deemed not to be a ‘Subsidiary.’ 

(b) Holdings will not permit the Total Leverage Ratio at the end of any Test Period ending on March 31, June 30,
September 30 and December 31 of any calendar year to be more than 4.00 to 1.00. For the purposes of calculating the financial covenant set forth in this clause (b), the Relief Fund shall be deemed not to be a ‘Subsidiary.’”

 (k) The Credit Agreement is hereby further amended by adding the following proviso to the end of clause (ii) of Section 10.4
prior to the word “or”: 
 “provided, however, that notwithstanding anything to the contrary in the foregoing, the
satisfaction of any condition or the occurrence of any event that would permit the holders of Permitted Convertible Indebtedness to convert or require the repurchase of such Permitted Convertible Indebtedness (it being understood that, in the case
of any requirement to repurchase such Permitted Convertible Indebtedness, any default in the payment of the repurchase price when and as required shall, if the amount of such repurchase price exceeds the amount set forth in the proviso below in this
Section 10.4 and the requirements of the proviso are otherwise satisfied, be a default under the immediately preceding clause (i) notwithstanding this proviso) shall not constitute an Event of Default under clause (ii);” 

(l) The Credit Agreement is hereby further amended by adding the following proviso at the end of clause (B) of Section 10.10: 

  
 -6- 

 “provided, however, that notwithstanding anything to the contrary in the foregoing,
any Termination Event under any Permitted Warrant Transaction shall not constitute an Event of Default under clause (B).” 
 (m) The
Credit Agreement is hereby further amended by substituting the words “Secured Leverage Ratio” for the words “Total Leverage Ratio” in the tenth line of Section 12.12(i) thereof. 

(n) The Credit Agreement is hereby further amended by adding a new item 10. to Exhibit I to the Credit Agreement [Compliance Certificate]
as follows: 
 “10. The Secured Leverage Ratio for the Test Period ended
                    , 20     was             :1.00.” 

3. Conditions Precedent to Effectiveness. This Amendment shall become effective on the Second Amendment Effective
Date; provided, that such effectiveness is subject to the truth and accuracy of the warranties and representations set forth in Sections 4 and 5 below and receipt by the Administrative Agent of each of the following, each of which shall be in
form and substance satisfactory to Administrative Agent: 
 (a) This Amendment, duly executed and delivered by the Borrower, Holdings, the
Guarantors party hereto, the Required Lenders and the Administrative Agent; 
 (b) A Reaffirmation of Obligations Under Credit Documents (the
“Reaffirmation”) dated the Second Amendment Effective Date duly executed by each Credit Party, in the form of Exhibit I attached hereto; 

(c) The payment of all fees and other amounts due and payable on or prior to the effective date of this Amendment, including reimbursement or
payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by
the Borrower hereunder or under any other agreement with the Administrative Agent or SunTrust Robinson Humphrey, Inc.; and 
 (d) Such other
documents as the Administrative Agent may reasonably request. 
 4. Representations. Each of the Borrower and
Holdings represents and warrants to the Administrative Agent and the Lenders that: 
 (a) Power and Authority. Each of the Borrower
and the other Credit Parties have the power and authority to execute, deliver and perform the terms and provisions of this Amendment and the Credit Agreement, as amended by this Amendment, and have taken all necessary corporate action to duly
authorize the execution, delivery and performance of this Amendment. Each of this Amendment and the Credit Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of the Borrower and Holdings enforceable in
accordance with its terms, except to the extent that 

  
 -7- 

 
the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable
principles. 
 (b) No Violation. The execution, delivery and performance by the Borrower and the other Credit Parties of this
Amendment, and compliance by them with the terms and provisions of the Credit Agreement, as amended by this Amendment: (i) will not contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any
court or federal, state or local Governmental Authority, (ii) will not conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of
(or the obligation to create or impose) any lien upon any of the property or assets of any Credit Party pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other agreement, contract or
instrument, to which any Credit Party is a party or by which they or any of their property or assets is bound or to which they may be subject or (iii) will not violate any provision of the certificate or articles of incorporation or bylaws of
the Borrower, Holdings or any other Credit Party. 
 (c) Governmental Approvals. No order, consent, approval, license, authorization
or validation of, or filing, recording or registration with (except for those that have otherwise been obtained or made on or prior to the date of the effectiveness of this Amendment and which remain in full force and effect on such date), or
exemption by, any Governmental Authority, is required to authorize, or is required in connection with, (i) the execution, delivery and performance of this Amendment by the Borrower or Holdings or (ii) the legality, validity, binding effect
or enforceability of the Credit Agreement, as amended by this Amendment, against the Borrower or Holdings. 
 (d) No Default. No
Default or Event of Default has occurred and is continuing as of the date hereof and no Default or Event of Default will exist immediately after giving effect to this Amendment. 

(e) No Impairment. The execution, delivery, performance and effectiveness of this Amendment will not: (a) impair the validity,
effectiveness or priority of the Liens granted pursuant to any Credit Document, and such Liens continue unimpaired with the same priority to secure repayment of all of the applicable Obligations, whether heretofore or hereafter incurred, and
(b) require that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens. 
 (f) Credit
Parties. The list of signatories to the Reaffirmation represents a true, correct and complete list of all Persons who are required by the terms of the Credit Documents to be or to become a Credit Party as of the date hereof. 

(g) Disclosure. As of the Second Amendment Effective Date, all information (other than projections, other forward-looking information
and information of a general economic or industry-specific nature) that has been made available concerning the Credit Parties and/or the transactions contemplated by this Amendment prepared by, or on

  
 -8- 

 
behalf of, the Borrower or Holdings or by any of their respective representatives or affiliates, and made available to any Lender or the Administrative Agent in connection with the transactions
contemplated by this Amendment on or before the Second Amendment Effective Date, when taken as a whole, did not, when furnished, contain any untrue statements of a material fact or omit to state a material fact necessary in order to make the
statements contained therein not materially misleading in light of the circumstances under which such statements are made. 
 5.
Reaffirmation of Representations. Each of the Borrower and Holdings hereby repeats and reaffirms all representations and warranties made to the Administrative Agent and the Lenders in the Credit Agreement and the other Credit
Documents on and as of the date hereof (and after giving effect to this Amendment) with the same force and effect as if such representations and warranties were set forth in this Amendment in full (except to the extent that such representations and
warranties relate expressly to an earlier date, in which case such representations and warranties were true and correct as of such earlier date). 

6. No Further Amendments; Ratification of Liability. Except as expressly amended or waived hereby, the Credit Agreement
and each of the other Credit Documents shall remain in full force and effect in accordance with their respective terms, and the Lenders and the Administrative Agent hereby require strict compliance with the terms and conditions of the Credit
Agreement and the other Credit Documents in the future. Each of the Borrower and Holdings hereby (i) restates, ratifies, confirms and reaffirms its respective liabilities, payment and performance obligations (contingent or otherwise) and each
and every term, covenant and condition set forth in the Credit Agreement and the other Credit Documents to which it is a party, all as amended by this Amendment, and the liens and security interests granted, created and perfected thereby and
(ii) acknowledges and agrees that this Amendment shall not in any way affect the validity and enforceability of any Credit Document to which it is a party, or reduce, impair or discharge the obligations of the Borrower or Holdings or the
Collateral granted to the Administrative Agent and/or the Lenders thereunder. The Lenders’ agreement to the terms of this Amendment or any other amendment of the Credit Agreement or any other Credit Document shall not be deemed to establish or
create a custom or course of dealing between the Borrower, Holdings or the Lenders, or any of them. This Amendment shall be deemed to be a “Credit Document” for all purposes under the Credit Agreement. After the effectiveness of this
Amendment, each reference to the Credit Agreement in any of the Credit Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment. 

7. Other Provisions. 

(a) This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed and delivered shall be deemed to be an original, and all counterparts, taken together, shall constitute but one and the same document. 

  
 -9- 

 (b) The Borrower agrees to reimburse the Lenders and the Administrative Agent on demand for all
reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred by such parties in negotiating, documenting and consummating this Amendment, the other documents referred to herein, and the transactions
contemplated hereby and thereby. 
 (c) THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE
STATE OF NEW YORK. 
 (d) THIS AMENDMENT CONSTITUTES THE ENTIRE CONTRACT AMONG THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF AND
SUPERSEDES ANY AND ALL PREVIOUS DISCUSSIONS, CORRESPONDENCE, AGREEMENTS AND OTHER UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF. 

(e) In consideration of the amendments contained herein, each of the Borrower and Holdings hereby waives and releases each of the Lenders and
the Administrative Agent from any and all known claims and defenses with respect to the Credit Agreement and the other Credit Documents and the transactions contemplated thereby. 

(f) Each of the Borrower and Holdings agrees to take all further actions and execute such other documents and instruments as the Administrative
Agent may from time to time reasonably request to carry out the transactions contemplated by this Amendment, the Credit Documents and all other agreements executed and delivered in connection herewith. 

(g) THE PARTIES HERETO HAVE ENTERED INTO THIS AMENDMENT SOLELY TO AMEND CERTAIN TERMS OF THE CREDIT AGREEMENT. THE PARTIES DO NOT INTEND THIS
AMENDMENT NOR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AMENDMENT AND THE TRANSACTION CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER OR HOLDINGS UNDER OR IN CONNECTION WITH THE
CREDIT AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS. 
 [Signature Pages Follow] 

  
 -10- 

 IN WITNESS WHEREOF, the Borrower, Holdings, the Lenders and the Administrative Agent have caused
this Second Amendment to Amended and Restated Credit Agreement to be duly executed by their respective duly authorized officers and representatives as of the day and year first above written. 

 

			
	CARGO AIRCRAFT MANAGEMENT, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President

 
			
	
	AIR TRANSPORT SERVICES GROUP, INC.

 
			
		
	By:	 	 /s/ Joseph C. Hete

	Name:	 	 Joseph C. Hete

	Title:	 	 President and Chief Executive Officer

 [Signatures Continue on Following Pages] 

 
			
	ABX AIR, INC.
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	
Vice President, General Counsel and 
Secretary

 
			
	
	LGSTX DISTRIBUTION SERVICES, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	AIRBORNE GLOBAL SOLUTIONS, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

 [Signature Page to Second Amendment to Credit Agreement] 

 
			
	AIRBORNE MAINTENANCE AND ENGINEERING SERVICES, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	AIR TRANSPORT INTERNATIONAL LIMITED LIABILITY COMPANY

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	AMES MATERIAL SERVICES INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	CARGO AVIATION, INC.

 
			
		
	By:	 	 /s/ Joseph C. Hete

	Name:	 	 Joseph C. Hete

	Title:	 	 President

 [Signature Page to Second Amendment to Credit Agreement] 

 
			
	CARGO HOLDINGS INTERNATIONAL, INC.

 
			
		
	By:	 	 /s/ Joseph C. Hete

	Name:	 	 Joseph C. Hete

	Title:	 	 President and Chief Executive Officer

			
	
	LGSTX FUEL MANAGEMENT, INC.

 
			
		
	By:	 	 /s/ Quint O. Turner

	Name:	 	 Quint O. Turner

	Title:	 	 President

 
			
	
	LGSTX SERVICES, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	AIR TRANSPORT INTERNATIONAL, INC.

 
			
		
	By:	 	 /s/ Matthew E. Fedders

	Name:	 	 Matthew E. Fedders

	Title:	 	 Vice President, Treasurer

			
	
	GLOBAL FLIGHT SOURCE, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

 [Signature Page to Second Amendment to Credit Agreement] 

 
			
	LGSTX CARGO SERVICES, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

			
	
	PEMCO WORLD AIR SERVICES, INC.

 
			
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	 W. Joseph Payne

	Title:	 	 Vice President, Secretary

 [Signature Page to Second Amendment to Credit Agreement] 

  

 
			
	 SUNTRUST BANK, in its capacities as a Lender and as Administrative Agent

		
	By:	 	 /s/ Chris Hursey

	Name:	 	Chris Hursey
	Title:	 	Director

 [Signature Page to Second Amendment to Credit Agreement]  

 
			
	REGIONS BANK, as a Lender
		
	By:	 	 /s/ Cheryl L. Shelhart

		 	Name: Cheryl L. Shelhart
		 	Title: Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	 /s/ John B. Middelburg

		 	Name: John B. Middelburg
		 	Title: Executive Director

 [Signature Page to Second Amendment to Credit Agreement] 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	 /s/ Gregg A. Bush

		 	Name: Gregg A. Bush
		 	Title: SVP

 [Signature Page to Second Amendment to Credit Agreement] 

 
	
	PNC BANK, NATIONAL ASSOCIATION, as a Lender
	
	By: /s/ David C.
Beckett                                        
    
	 Name: David C. Beckett

	 Title:   Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

  

 
	
	 BRANCH BANKING AND TRUST COMPANY,
 as a
Lender

	
	By: /s/ David
Miller                                        
        
	 Name: David Miller

	 Title:   Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

  

 
	
	COMPASS BANK, as a Lender
	
	By: /s/ Jeffrey Burke                            
	 Name: Jeffrey Burke

	 Title:   Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

  

 
	
	 THE NORTHERN TRUST COMPANY,

as a Lender

	
	By: /s/ John
DiLegge                                        

	 Name: John DiLegge

	 Title:   Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

  

 
	
	THE PRIVATEBANK AND TRUST COMPANY, as a Lender
	
	By: /s/ Nick
Fadel                                        
        
	 Name: Nick Fadel

	 Title:   Managing Director

 [Signature Page to Second Amendment to Credit Agreement] 

 
	
	 UNION BANK & TRUST, as a Lender

	
	 By:  /s/ J. deK Bowen
IV                                

	 Name: J. deK Bowen IV

	 Title: Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

 
	
	 ATLANTIC CAPITAL BANK, as a Lender

	
	 By: /s/ Preston Mc
Donald                        

	 Name: Preston Mc Donald

	 Title:   Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement] 

 
	
	 TRISTATE CAPITAL BANK, as a Lender

	
	 By:  /s/ John D.
Barrett                                        

	 Name: John D. Barrett

	 Title:   Regional President - Ohio

 [End of Signatures] 

[Signature Page to Second Amendment to Credit Agreement] 

 EXHIBIT I 

REAFFIRMATION OF OBLIGATIONS UNDER CREDIT DOCUMENTS 

Reference is hereby made to (i) that certain Amended and Restated Credit Agreement dated as of May 31, 2016, as amended, among Cargo
Aircraft Management, Inc. (the “Borrower”), Air Transport Services Group, Inc., the Lenders a party thereto and SunTrust Bank, as Administrative Agent (the “Credit Agreement”; capitalized terms used herein and not
defined herein have the meanings ascribed to such terms in the Credit Agreement) and (ii) that certain Second Amendment to Amended and Restated Credit Agreement dated as of the date hereof (the “Amendment”) among the Borrower,
each other Credit Party party thereto, the Lenders and the Administrative Agent. 
 Each Credit Party acknowledges and reaffirms that
(i) all liens and security interests granted to the Administrative Agent and the Lenders under the Security Documents remain in full force and effect and shall continue to secure the Obligations and (ii) the validity, perfection,
enforceability or priority of such liens and security interests will not be impaired in any way by the Amendment. 
 Each of the undersigned
Credit Parties hereby further reaffirms its continuing obligations owing to the Administrative Agent and the Lenders under each of the Credit Documents (including, without limitation, the guarantee obligations of each Guarantor under the Guarantee
and Collateral Agreement) to which such Person is a party, and each Credit Party agrees that the amendments contained in the Amendment are solely to amend the terms of the Credit Agreement and do not in any way affect the validity and/or
enforceability of any Credit Document, or reduce, impair or discharge the obligations of such Person thereunder. 
 Each of the undersigned
Credit Parties hereby represents and warrants to the Administrative Agent and the Lenders that: (a) the execution and delivery by the Credit Parties of this Reaffirmation is within the power (corporate or otherwise) and authority of the Credit
Parties, has been duly authorized and approved by all requisite action on the part of the Credit Parties, and does not and will not contravene, breach or conflict with any provision of applicable law or any of the charter or other organic documents
of the Credit Parties, or any indenture, agreement, instrument or undertaking binding on the Credit Parties; (b) this Reaffirmation has been duly executed by the Credit Parties; and (c) the Credit Documents remain in full force and effect
and constitute the legal, valid and binding obligations of the Credit Parties, enforceable in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting generally the
enforcement of creditor’s rights; and (d) all of the Obligations are absolute and unconditional, and such Obligations are not subject to any claim, defense, deduction, right of offset or otherwise. 

THE CREDIT PARTIES DO NOT INTEND THE AMENDMENT NOR THE TRANSACTIONS CONTEMPLATED THEREBY TO BE, AND THE AMENDMENT AND THE TRANSACTION
CONTEMPLATED THEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE CREDIT PARTIES UNDER OR IN CONNECTION WITH THE CREDIT AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS. 

  
 Exhibit I - 1 

 This Reaffirmation shall be construed in accordance with and be governed by the law (without
giving effect to the conflict of law principles thereof) of the State of New York. 

  
 Exhibit I - 2 

 IN WITNESS WHEREOF, each of the undersigned has duly executed and delivered this Reaffirmation of
Obligations under Credit Documents as of September 18, 2017. 
  

	
	 CARGO AIRCRAFT MANAGEMENT, INC.

	
	
By:                  
                                         
           

	 Name:

	 Title:

	
	 ABX AIR, INC.

	
	
By:                  
                                         
           

	 Name:

	 Title:

	
	 LGSTX DISTRIBUTION SERVICES, INC.

	
	
By:                  
                                         
           

	 Name:

	 Title:

	
	 AIRBORNE GLOBAL SOLUTIONS, INC.

	
	
By:                  
                                         
           

	 Name:

	 Title:

 [Signatures Continue on Following Pages] 

  
 Exhibit I - 3 

 
	
	AIRBORNE MAINTENANCE AND ENGINEERING SERVICES, INC.
	
	
By:                  
                                         
                                       

	 Name:

	 Title:

	
	AIR TRANSPORT INTERNATIONAL LIMITED LIABILITY COMPANY
	
	
By:                  
                                         
                                       

	 Name:

	 Title:

	
	 AMES MATERIAL SERVICES INC.

	
	
By:                  
                                         
                                       

	 Name:

	 Title:

	
	 AIR TRANSPORT INTERNATIONAL, INC.

	
	
By:                  
                                         
                                       

	 Name:

	 Title:

	
	 CARGO AVIATION, INC.

	
	
By:                  
                                         
                                       

	 Name:

	 Title:

  
 Exhibit I - 4 

 
	
	 CARGO HOLDINGS INTERNATIONAL, INC.

	
	
By:                  
                                         
               

	 Name:

	 Title:

	
	 LGSTX FUEL MANAGEMENT, INC.

	
	
By:                  
                                         
               

	 Name:

	 Title:

	
	 LGSTX SERVICES, INC.

	
	
By:                  
                                         
               

	 Name:

	 Title:

	
	 AIR TRANSPORT SERVICES GROUP, INC.

	
	
By:                  
                                         
               

	 Name:

	 Title:

	
	 GLOBAL FLIGHT SOURCE, INC.

	
	
By:                  
                                         
               

	 Name:

	 Title:

  
 Exhibit I - 5 

 
	
	 LGSTX CARGO SERVICES, INC.

	
	
By:                  
                                         
   

	 Name:

	 Title:

	
	 PEMCO WORLD AIR SERVICES, INC.

	
	
By:                  
                                         
   

	 Name:

	 Title:

  
 Exhibit I - 6

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