Document:

exv4w2

 

EXHIBIT 4.2

 

FIFTH SUPPLEMENTAL INDENTURE

among

TEPPCO PARTNERS, L.P.

as Issuer,

TE PRODUCTS PIPELINE COMPANY, LLC,

TCTM, L.P.,

TEPPCO MIDSTREAM COMPANIES, LLC

and

VAL VERDE GAS GATHERING COMPANY, L.P.

as Subsidiary Guarantors,

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

March 27, 2008

 

5.90% Senior Notes due 2013

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1 THE 2013 NOTES	 	 	2	 
	SECTION 1.1
	 	Designation of the 2013 Notes; Establishment of Form	 	 	2	 
	SECTION 1.2
	 	Amount	 	 	3	 
	SECTION 1.3
	 	Redemption	 	 	3	 
	SECTION 1.4
	 	Conversion	 	 	3	 
	SECTION 1.5
	 	Maturity	 	 	3	 
	SECTION 1.6
	 	Place of Payment	 	 	3	 
	SECTION 1.7
	 	Subsidiary Guarantors	 	 	3	 
	SECTION 1.8
	 	Other Terms of 2013 Notes	 	 	4	 
	ARTICLE 2 AMENDMENTS TO THE INDENTURE	 	 	4	 
	SECTION 2.1
	 	Definitions	 	 	4	 
	SECTION 2.2
	 	Redemption	 	 	9	 
	SECTION 2.3
	 	Covenants	 	 	9	 
	SECTION 2.4
	 	Events of Default	 	 	10	 
	SECTION 2.5
	 	Administration of Trust	 	 	11	 
	SECTION 2.6
	 	Required Notices or Demands	 	 	11	 
	ARTICLE 3 VAL VERDE, TE PRODUCTS AND TEPPCO MIDSTREAM GUARANTEE	 	 	11	 
	SECTION 3.1
	 	Val Verde, TE Products and TEPPCO Midstream Guarantee	 	 	11	 
	ARTICLE 4 MISCELLANEOUS PROVISIONS	 	 	12	 
	SECTION 4.1
	 	Integral Part	 	 	12	 
	SECTION 4.2
	 	General Definitions	 	 	12	 
	SECTION 4.3
	 	Adoption, Ratification and Confirmation	 	 	12	 
	SECTION 4.4
	 	Counterparts	 	 	12	 
	SECTION 4.5
	 	Governing Law	 	 	12	 
	 
	 	 	 	 	 	 

			
	EXHIBIT A FORM OF 2013 NOTE
	 	A-1

i  

 

FIFTH SUPPLEMENTAL INDENTURE

     THIS FIFTH SUPPLEMENTAL INDENTURE, dated as of March 27, 2008 (this “Fifth Supplemental
Indenture”), among TEPPCO Partners, L.P., a Delaware limited partnership (the “Partnership”), TE
Products Pipeline Company, LLC, a Texas limited liability company (“TE Products”), TCTM, L.P., a
Delaware limited partnership (“TCTM”), TEPPCO Midstream Companies, LLC, a Texas limited liability
company (“TEPPCO Midstream”), Val Verde Gas Gathering Company, L.P., a Delaware limited partnership
(“Val Verde” and together with TE Products, TCTM, and TEPPCO Midstream, the “Subsidiary
Guarantors”), and U.S. Bank National Association, successor, pursuant to Section 7.09 of the
Original Indenture (as defined below) to Wachovia Bank, National Association and First Union
National Bank, as trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, TE Products, TCTM, TEPPCO Midstream and Jonah Gas Gathering Company, a Wyoming
general partnership (“Jonah”), or their predecessors, and the Partnership have heretofore executed
and delivered to the Trustee an Indenture dated as of February 20, 2002 (the “Original Indenture”
and, as amended and supplemented by this Fifth Supplemental Indenture, the “Indenture”), providing
for the issuance from time to time of one or more series of the Partnership’s Debt Securities, and
the Guarantee by each of the Subsidiary Guarantors (as defined therein) of the Debt Securities;

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

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

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

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

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

     WHEREAS, the Partnership desires to issue a series of its Debt Securities under the Indenture,
such series to be known as its 5.90% Senior Notes due 2013 (the “2013 Notes”), the

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issuance of which series was authorized by or pursuant to resolution of the Board of
Directors, and the Subsidiary Guarantors desire to Guarantee the 2013 Notes as provided in Article
XIV of the Indenture;

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

     WHEREAS, each of Val Verde, TE Products and TEPPCO Midstream is executing and delivering this
Fifth Supplemental Indenture for the purpose of providing a Guarantee of the 2013 Notes, in
accordance with the provisions of the Original Indenture;

     WHEREAS, pursuant to the Full Release of Guarantee of Wachovia Bank, National Association, as
trustee, dated as of July 31, 2006, Jonah was fully released and discharged from all obligations,
including any obligations as a Subsidiary Guarantor, in connection with the Indenture;

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

     NOW, THEREFORE:

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

ARTICLE 1

THE 2013 NOTES

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

     There shall be a series of Debt Securities designated “5.90% Senior Notes due 2013” of the
Partnership (the “2013 Notes”), and the form thereof (including the notation of Guarantee thereof)
shall be substantially as set forth in Exhibit A hereto, which is incorporated into and shall be
deemed a part of this Fifth Supplemental Indenture, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by the Indenture, and
may have such letters, numbers or other marks of identification and such legends or endorsements
placed thereon as the Partnership may deem appropriate or as may be required or appropriate to
comply with any laws or with any rules made pursuant thereto or with the rules of any securities
exchange on which the 2013 Notes may be listed, or to conform to general usage, or as may,
consistently with the Indenture, be determined by the officers executing such 2013 Notes, as
evidenced by their execution of the 2013 Notes.

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

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

     SECTION 1.2 Amount.

     The Trustee shall authenticate and deliver 2013 Notes for original issue in an aggregate
principal amount of up to $250,000,000 upon Partnership Order for the authentication and delivery
of 2013 Notes. The authorized aggregate principal amount of 2013 Notes may be increased at any
time hereafter and the series may be reopened for issuances of additional 2013 Notes, upon
Partnership Order without the consent of any Holder. The 2013 Notes issued on the date hereof and
any such additional 2013 Notes that may be issued hereafter shall be part of the same series of
Debt Securities.

     SECTION 1.3 Redemption.

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

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

     SECTION 1.4 Conversion.

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

     SECTION 1.5 Maturity.

     The Stated Maturity of the 2013 Notes shall be April 15, 2013.

     SECTION 1.6 Place of Payment.

     As long as any 2013 Notes are Outstanding, the Partnership shall maintain in the Borough of
Manhattan, The City of New York, an office or agency where the 2013 Notes may be surrendered for
registration of transfer or for exchange, an office or agency where the 2013 Notes may be presented
for payment, and an office or agency where notices and demands to or upon the Partnership in
respect of the 2013 Notes and the Indenture may be served. All of such offices or agencies shall
initially be the corporate trust office of the Trustee in the Borough of Manhattan, The City of New
York, which on the date of this Fifth Supplemental Indenture, is located at U.S. Bank National
Association, 100 Wall Street, Suite 1600, EX-NY-WALL, New York, NY 10005, Attn: David Massa. The
Partnership may also from time to time designate one or more other offices or agencies where the
2013 Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Partnership of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York, for such purposes.

     SECTION 1.7 Subsidiary Guarantors.

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

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     SECTION 1.8 Other Terms of 2013 Notes.

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

ARTICLE 2

AMENDMENTS TO THE INDENTURE

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

     SECTION 2.1 Definitions.

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

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

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

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

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

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

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

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

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

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

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

     “Permitted Liens” include:

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

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

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

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

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finance such purchase price, whether such indebtedness is incurred prior to, at the
time of or within one year after the date of such acquisition;

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

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

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

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

     (i) Liens in favor of any Person to secure obligations under provisions of any letters
of credit, bank guarantees, bonds or surety obligations required or requested by any
regulatory, governmental or court authority in connection with any contract or statute; or
any Lien upon or deposits of any assets to secure performance or bids, trade contracts,
leases or statutory obligations;

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

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

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

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

     (n) Liens to secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancings, refundings, extensions, renewals or replacements) of any Lien
referred to in clauses (a)-(m) above; provided, however, that any Liens permitted by the
terms set forth under any of such clauses (a)-(m) shall not extend to or cover any property
of the Partnership or of any of its Subsidiaries, as the case may be, other than the
property specified in such clauses and improvements thereto or proceeds therefrom;

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

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

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

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

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

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

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

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

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

     (x) Liens securing indebtedness of the Partnership or indebtedness of any Subsidiaries
of the Partnership, all or a portion of the net proceeds of which are used, substantially
concurrently with the funding thereof (and for purposes of determining “substantial
concurrence,” taking into consideration, among other things, required notices

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to be given to Holders of Outstanding Debt Securities under this Indenture (including
the 2013 Notes) in connection with such refunding, refinancing, repurchase, and the required
durations thereof), to refund, refinance, or repurchase all Outstanding Debt Securities
under this Indenture (including the 2013 Notes) including all accrued interest thereon and
reasonable fees and expenses and any premium incurred by the Partnership or its Subsidiaries
in connection therewith; and

     (y) any Lien upon any property, shares of capital stock, indebtedness or other assets
to secure indebtedness incurred by the Partnership or any of its Subsidiaries, the proceeds
of which, in whole or in part, are used to defease, in a legal or a covenant defeasance, the
obligations of the Partnership on the 2013 Notes or any other series of Debt Securities.

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

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

     (b) any processing or manufacturing plant or terminal owned or leased by the
Partnership or any of its Subsidiaries that is located in the United States of America or
any territory or political subdivision thereof;

except, in the case of either of the foregoing clauses (a) and (b), any such assets consisting of
inventories, furniture, office fixtures and equipment (including data processing equipment),
vehicles and equipment used on, or useful with, vehicles, and any such assets, plant or terminal
which, in the opinion of the Board of Directors, is not material in relation to the activities of
the Partnership or of the Partnership and its Subsidiaries, taken as a whole.

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

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

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

     “Subsidiary Guarantors” means the Person or Persons named as the “Subsidiary Guarantors” in
the first paragraph of this instrument until a successor Person or Persons shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Subsidiary Guarantors”
shall mean such successor Person or Persons, and any other Subsidiary of the Partnership who may
execute a supplement to the Original Indenture, for the purpose of providing a Guarantee of Debt
Securities pursuant to the Original Indenture.

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     “2013 Notes” means the 5.90% Senior Notes due 2013 of the Partnership to be issued pursuant to
this Indenture. For purposes of this Indenture, the term “2013 Notes” shall, except where the
context otherwise requires, include the Guarantee.

     SECTION 2.2 Redemption.

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

     “Section 3.06. Optional Redemption.

     The 2013 Notes may be redeemed at the option of the Partnership at any time in whole, or from
time to time, in part, at the redemption prices described in the 2013 Notes. Any notice to Holders
of 2013 Notes of such redemption shall include the method of calculating the redemption price, but
need not include the redemption price itself. The actual redemption price, calculated as provided
in the 2013 Notes, will be calculated and certified to the Trustee and the Partnership by the
Independent Investment Banker.”

     SECTION 2.3 Covenants.

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

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

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

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

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

     Notwithstanding the foregoing provisions of this Section, the Partnership may, and may permit
any Subsidiary to, effect any Sale-Leaseback Transaction that is not excepted by clauses

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

     Section 4.13. Limitation on Liens. The Partnership shall not, and shall not permit
any of its Subsidiaries to, incur, create, assume or suffer to exist any Lien, other than a
Permitted Lien, on any Principal Property or upon any shares of capital stock of any Subsidiary
owning or leasing any Principal Property, whether now existing or hereafter created or acquired by
the Partnership or such Subsidiary, to secure any Debt of the Partnership or any other Person,
without in any such case making effective provision whereby any and all 2013 Notes then Outstanding
will be secured by a Lien equally and ratably with, or prior to, such Debt for so long as such Debt
shall be so secured. Notwithstanding the foregoing, the Partnership may, and may permit any
Subsidiary to, incur, create, assume or suffer to exist any Lien (other than a Permitted Lien) on
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, without securing the 2013
Notes as provided in this Section, provided that the aggregate principal amount of all Debt then
outstanding secured by any such Lien together with the aggregate amount of Attributable
Indebtedness deemed to be outstanding in respect of all Sale-Leaseback Transactions (exclusive of
any such Sale-Leaseback Transactions otherwise permitted under clauses (a) and (c) of Section
4.12), does not exceed 10% of Consolidated Net Tangible Assets.

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

     SECTION 2.4 Events of Default.

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

     “(h) default in the payment by the Partnership or any of its Subsidiaries at the Stated
Maturity thereof, after the expiration of any applicable grace period, of any principal of any Debt
of the Partnership (other than the 2013 Notes) or any of its Subsidiaries (other than the Guarantee
of the 2013 Notes) outstanding in an aggregate principal amount in excess of $50,000,000, or the
occurrence of any other default thereunder (including, without limitation, the failure to pay
interest or any premium), the effect of which default is to cause such Debt to become, or to be
declared, due prior to its Stated Maturity and such acceleration is not rescinded within 60 days
after there has been given, by registered or certified mail, to the Partnership and the Subsidiary
Guarantors by the Trustee or to the Partnership, the Subsidiary Guarantors and the Trustee by the

- 10 -

 

Holders of at least 25% in principal amount of the Outstanding 2013 Notes a written notice
specifying such default and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder, and the receipt by the Partnership and the Subsidiary Guarantors of such
written notice.”

     SECTION 2.5 Administration of Trust.

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

     “Section 7.13. Administration of Trust.

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

     SECTION 2.6 Required Notices or Demands.

     Section 13.03 of the Original Indenture shall be amended by deleting the addresses and contact
information appearing therein and inserting the following new addresses and contact information:

“If to the Partnership or the Subsidiary Guarantors:

TEPPCO Partners, L.P.

TE Products Pipeline Company, LLC

TCTM, L.P.

TEPPCO Midstream Companies, LLC

Val Verde Gas Gathering Company, L.P.

1100 Louisiana Street, Suite 1600

Houston, Texas 77002

Attention: Chief Financial Officer

Telecopy No. 713-381-8225

If to the Trustee:

U.S. Bank National Association

5555 San Felipe Street, Suite 1150

Houston, Texas 77056

Attention: Steven A. Finklea, CCTS- Vice President

Telecopy No. 713-235-9213”

ARTICLE 3

VAL VERDE, TE PRODUCTS AND TEPPCO MIDSTREAM GUARANTEE

     SECTION 3.1 Val Verde, TE Products and TEPPCO Midstream Guarantee.

     Each of Val Verde, TE Products and TEPPCO Midstream hereby acknowledges and agrees that it is
a Subsidiary Guarantor with respect to the 2013 Notes and is executing and delivering this Fifth
Supplemental Indenture for the purpose of providing a Guarantee of the

- 11 -

 

2013 Notes, and accordingly, the obligations of each of Val Verde, TE Products and TEPPCO
Midstream as a Subsidiary Guarantor of the 2013 Notes shall be governed by the Original Indenture,
as amended and supplemented by this Fifth Supplemental Indenture, as may be further amended and
supplemented from time to time.

ARTICLE 4

MISCELLANEOUS PROVISIONS

     SECTION 4.1 Integral Part.

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

     SECTION 4.2 General Definitions.

     For all purposes of this Fifth Supplemental Indenture:

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

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

     SECTION 4.3 Adoption, Ratification and Confirmation.

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

     SECTION 4.4 Counterparts.

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

     SECTION 4.5 Governing Law.

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

- 12 -

 

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

	 	 	 	 	 	 	 	 	 
	 	 	TEPPCO PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Texas Eastern Products Pipeline Company, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TE PRODUCTS PIPELINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TCTM, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEPPCO MIDSTREAM COMPANIES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

- 13 -

 

	 	 	 	 	 	 	 	 	 
	 	 	VAL VERDE GAS GATHERING COMPANY L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO NGL Pipelines, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 

- 14 -

 

EXHIBIT A

[FORM OF FACE OF 2013 NOTE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMCH 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.]1

TEPPCO PARTNERS, L.P.

5.90% SENIOR NOTE DUE 2013

			
	 	 	 
	No.                                         
	 	$                                        

CUSIP No. 872384AD4

     TEPPCO Partners, L.P., a Delaware limited partnership (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                                          or registered assigns the principal sum of
                                                             Dollars on April 15, 2013 [or such greater or lesser amount as is
indicated on the Schedule of Exchanges of Securities attached hereto]2, at the office or
agency of the Company referred to below, and to pay interest thereon, commencing on October 15,
2008 and continuing semiannually thereafter, on April 15 and October 15 of each year, from March
27, 2008, or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, at the rate of 5.90% per annum, until the principal hereof is paid or duly provided
for, and (to the extent lawful) to pay on demand, interest on any overdue interest at the rate
borne by the Securities from the date on which such overdue interest becomes payable to the date
payment of such interest has been made or duly provided for. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date (other than at maturity) will,
as provided in such Indenture, be paid to the Person in whose name this Security (or one or more
predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be the April 1 or October 1 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may
be paid to the Person in whose name this Security (or one or more predecessor Securities) is
registered at the close of business on a special record date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such special record date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture. Interest on the Securities of this series shall be
computed on the basis of a 360-day year comprised of twelve 30-day months.

     The Company shall pay principal, premium, if any, and interest on this security 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 corporate trust office of
the Trustee, which on the date hereof is located at 100 Wall Street, Suite 1600, EX-NY-WALL, New
York, NY 10005, Attn: David Massa, or at such other office or agency of the Company as may be
maintained for such purpose, or, at the option of the Company, payment of interest may be made by
check mailed to the Holders on the

 

			
	1	 	These paragraphs should be included only if the Debt
Security is a Global Security.
	 
	2	 	This clause should be included only if the Debt
Security is a Global Security.

A-1 

 

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.

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

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

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

     Dated:                    

	 	 	 	 	 	 	 	 	 
	 	 	TEPPCO PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Texas Eastern Products Pipeline Company, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 	 	 
	Dated:                    	 	 	 	U.S. BANK NATIONAL ASSOCIATION,
As Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized Signatory

A-2 

 

[FORM
OF REVERSE OF 2013 NOTE]

     This Security is one of a duly authorized issue of the series of Debt Securities of the
Company designated as its 5.90% Senior Notes due 2013 (such series being herein called the
“Securities”), which is issued under, with securities of one or more additional series that may be
issued under, an indenture dated as of February 20, 2002, among the Company, the Subsidiary
Guarantors and U.S. Bank National Association, successor to Wachovia Bank, National Association and
First Union National Bank, as trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), as amended and supplemented by the Fifth Supplemental
Indenture dated as of March 27, 2008 (such Indenture, as so amended and supplemented, being called
the “Indenture”), to which Indenture and all future indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Subsidiary Guarantors, the Trustee and the Holders of
the Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered.

     The Securities are redeemable, at the option of the Company, at any time in whole, or from
time to time in 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; and (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 Make-Whole Price) on the Securities to be redeemed (exclusive of
interest accrued to the date of redemption (the “Redemption Date”)) discounted to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the
applicable Treasury Yield plus 50 basis points; plus, in either case, accrued interest to the
Redemption Date.

     The actual Make-Whole Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Company by the Independent Investment Banker. For purposes of determining
the Make-Whole Price, the following definitions are applicable:

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the
rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third
Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming
a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the applicable Comparable Treasury Price for 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 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 terms of the Securities to be redeemed; provided, however, that if no
maturity is within three months before or after the maturity date for the Securities, yields for
the two published maturities most closely corresponding to such United States Treasury security
will be determined and the treasury rate will be interpolated or extrapolated from those yields on
a straight line basis rounding to the nearest month.

     “Independent Investment Banker” means any of UBS Securities LLC, J.P. Morgan Securities Inc.,
SunTrust Robinson Humphrey, Inc. and Wachovia Capital Markets, LLC (and their respective
successors) or, if no such firm is willing and able to select the applicable Comparable Treasury
Issue or perform the other functions of the Independent Investment Banker provided in the
Indenture, an independent investment banking institution of national standing appointed by the
Trustee and reasonably acceptable to the Company.

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

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

A-3 

 

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Securities, an average, as determined by an Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed
in each case as a percentage of its principal amount) quoted in writing to an 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.

     Securities called for optional redemption become due on the Redemption Date. Notices of
optional redemption will be mailed at least 30 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 method of calculating such Make-Whole Price and the place(s)
that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the
Company defaults in payment of the Make-Whole 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 or by any other method the Trustee deems fair and appropriate.

     The Securities may be redeemed in part in multiplies of $1,000 only. Any such redemption will
also comply with Article III of the Indenture.

     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.

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

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

     No Holder of the Securities may pursue any remedy under the Indenture unless the Trustee shall
have failed to act within 60 days after notice of an Event of Default with respect to the
Securities and written request by Holders of at least 25% in principal amount of the Outstanding
Securities, and the offer to the Trustee of indemnity reasonably satisfactory to it; however, such
provision does not affect the right to sue for enforcement of any overdue payment on a Security by
the Holder thereof. Subject to certain limitations, Holders of a majority in principal amount of
the Outstanding Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders notice of any continuing default (except default in payment of
principal, premium or interest) if it determines in good faith that withholding the notice is in
the interest of the Holders. The Company is required to file a report with the Trustee each year
as to the absence or existence of defaults.

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

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

A-4 

 

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

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

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

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

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

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

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

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture. The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to TEPPCO Partners, L.P., 1100
Louisiana Street, Suite 1800, Houston, Texas 77002, Attn: Investor Relations.

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

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

A-5 

 

ASSIGNMENT FORM

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

 

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

 

 

 

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

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

Dated:                                        

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

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

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Phone No.:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	Signature

	 	Guarantee	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

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

A-6

 

SCHEDULE OF EXCHANGES OF SECURITIES3

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

	 	 	 	 	 	 	 
	Principal Amount	 	 	 	 	 	 
	of this Global Security	 	Authorized	 	 	 	Amount of
	Following Such	 	Signatory of	 	Amount of Decrease in	 	Increase in
	Decrease Date	 	Trustee or Security	 	Principal Amount	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Security	 	of this Global Security
	 

	 	 
	 	 
	 	 

 

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

A-7 

 

NOTATION OF GUARANTEE

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

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

	 	 	 	 	 	 	 	 	 
	 	 	TE PRODUCTS PIPELINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TCTM, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEPPCO MIDSTREAM COMPANIES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	VAL VERDE GAS GATHERING COMPANY L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO NGL Pipelines, LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

William G. Manias
	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

A-8exv4w3

 

EXHIBIT 4.3

 

SIXTH SUPPLEMENTAL INDENTURE

 among

TEPPCO PARTNERS, L.P.

as Issuer,

TE PRODUCTS PIPELINE COMPANY, LLC,

TCTM, L.P.,

TEPPCO MIDSTREAM COMPANIES, LLC

and

VAL VERDE GAS GATHERING COMPANY, L.P.

as Subsidiary Guarantors,

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

March 27, 2008

 

6.65% Senior Notes due 2018

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 THE 2018 NOTES
	 	 	2	 
	SECTION 1.1 Designation of the 2018 Notes; Establishment of Form
	 	 	2	 
	SECTION 1.2 Amount
	 	 	3	 
	SECTION 1.3 Redemption
	 	 	3	 
	SECTION 1.4 Conversion
	 	 	3	 
	SECTION 1.5 Maturity
	 	 	3	 
	SECTION 1.6 Place of Payment
	 	 	3	 
	SECTION 1.7 Subsidiary Guarantors
	 	 	3	 
	SECTION 1.8 Other Terms of 2018 Notes
	 	 	4	 
	ARTICLE 2 AMENDMENTS TO THE INDENTURE
	 	 	4	 
	SECTION 2.1 Definitions
	 	 	4	 
	SECTION 2.2 Redemption
	 	 	9	 
	SECTION 2.3 Covenants
	 	 	9	 
	SECTION 2.4 Events of Default
	 	 	10	 
	SECTION 2.5 Administration of Trust
	 	 	11	 
	SECTION 2.6 Required Notices or Demands
	 	 	11	 
	ARTICLE 3 VAL VERDE, TE PRODUCTS AND TEPPCO MIDSTREAM GUARANTEE
	 	 	11	 
	SECTION 3.1 Val Verde, TE Products and TEPPCO Midstream Guarantee
	 	 	11	 
	ARTICLE 4 MISCELLANEOUS PROVISIONS
	 	 	12	 
	SECTION 4.1 Integral Part
	 	 	12	 
	SECTION 4.2 General Definitions
	 	 	12	 
	SECTION 4.3 Adoption, Ratification and Confirmation
	 	 	12	 
	SECTION 4.4 Counterparts
	 	 	12	 
	SECTION 4.5 Governing Law
	 	 	12	 

EXHIBIT A FORM OF 2018 NOTE

A-1

i

 

SIXTH SUPPLEMENTAL INDENTURE

     THIS SIXTH SUPPLEMENTAL INDENTURE, dated as of March 27, 2008 (this “Sixth Supplemental
Indenture”), among TEPPCO Partners, L.P., a Delaware limited partnership (the “Partnership”), TE
Products Pipeline Company, LLC, a Texas limited liability company (“TE Products”), TCTM, L.P., a
Delaware limited partnership (“TCTM”), TEPPCO Midstream Companies, LLC, a Texas limited liability
company (“TEPPCO Midstream”), Val Verde Gas Gathering Company, L.P., a Delaware limited partnership
(“Val Verde” and together with TE Products, TCTM, and TEPPCO Midstream, the “Subsidiary
Guarantors”), and U.S. Bank National Association, successor, pursuant to Section 7.09 of the
Original Indenture (as defined below) to Wachovia Bank, National Association and First Union
National Bank, as trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, TE Products, TCTM, TEPPCO Midstream and Jonah Gas Gathering Company, a Wyoming
general partnership (“Jonah”), or their predecessors, and the Partnership have heretofore executed
and delivered to the Trustee an Indenture dated as of February 20, 2002 (the “Original Indenture”
and, as amended and supplemented by this Sixth Supplemental Indenture, the “Indenture”), providing
for the issuance from time to time of one or more series of the Partnership’s Debt Securities, and
the Guarantee by each of the Subsidiary Guarantors (as defined therein) of the Debt Securities;

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

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

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

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

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

     WHEREAS, the Partnership desires to issue a series of its Debt Securities under the Indenture,
such series to be known as its 6.65% Senior Notes due 2018 (the “2018 Notes”), the

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issuance of which series was authorized by or pursuant to resolution of the Board of
Directors, and the Subsidiary Guarantors desire to Guarantee the 2018 Notes as provided in Article
XIV of the Indenture;

     WHEREAS, the Partnership, pursuant to the foregoing authority, proposes in and by this Sixth
Supplemental Indenture to supplement and amend the Original Indenture insofar as it will apply only
to the 2018 Notes;

     WHEREAS, each of Val Verde, TE Products and TEPPCO Midstream is executing and delivering this
Sixth Supplemental Indenture for the purpose of providing a Guarantee of the 2018 Notes, in
accordance with the provisions of the Original Indenture;

     WHEREAS, pursuant to the Full Release of Guarantee of Wachovia Bank, National Association, as
trustee, dated as of July 31, 2006, Jonah was fully released and discharged from all obligations,
including any obligations as a Subsidiary Guarantor, in connection with the Indenture;

     WHEREAS, all things necessary have been done to make the 2018 Notes, when duly issued by the
Partnership and when executed on behalf of the Partnership and authenticated and delivered in
accordance with the Indenture, the valid obligations of the Partnership, to make the Guarantee of
the 2018 Notes the valid obligation of each of the Subsidiary Guarantors, and to make this Sixth
Supplemental Indenture a valid agreement of the Partnership and the Subsidiary Guarantors, in
accordance with their and its terms;

     NOW, THEREFORE:

     In consideration of the premises provided for herein, the Partnership, the Subsidiary
Guarantors and the Trustee mutually covenant and agree for the equal and proportionate benefit of
all Holders of the 2018 Notes as follows:

ARTICLE 1

THE 2018 NOTES

     SECTION 1.1 Designation of the 2018 Notes; Establishment of Form.

     There shall be a series of Debt Securities designated “6.65% Senior Notes due 2018” of the
Partnership (the “2018 Notes”), and the form thereof (including the notation of Guarantee thereof)
shall be substantially as set forth in Exhibit A hereto, which is incorporated into and shall be
deemed a part of this Sixth Supplemental Indenture, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by the Indenture, and
may have such letters, numbers or other marks of identification and such legends or endorsements
placed thereon as the Partnership may deem appropriate or as may be required or appropriate to
comply with any laws or with any rules made pursuant thereto or with the rules of any securities
exchange on which the 2018 Notes may be listed, or to conform to general usage, or as may,
consistently with the Indenture, be determined by the officers executing such 2018 Notes, as
evidenced by their execution of the 2018 Notes.

     The 2018 Notes will initially be issued in permanent global form, substantially in the form
set forth in Exhibit A hereto, as a Global Security.

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     The Partnership initially appoints the Trustee to act as paying agent and Registrar with
respect to the 2018 Notes.

     SECTION 1.2 Amount.

     The Trustee shall authenticate and deliver 2018 Notes for original issue in an aggregate
principal amount of up to $350,000,000 upon Partnership Order for the authentication and delivery
of 2018 Notes. The authorized aggregate principal amount of 2018 Notes may be increased at any
time hereafter and the series may be reopened for issuances of additional 2018 Notes, upon
Partnership Order without the consent of any Holder. The 2018 Notes issued on the date hereof and
any such additional 2018 Notes that may be issued hereafter shall be part of the same series of
Debt Securities.

     SECTION 1.3 Redemption.

          (a) There shall be no sinking fund for the retirement of the 2018 Notes or other
mandatory redemption obligation.

          (b) The Partnership, at its option, may redeem the 2018 Notes in accordance with the
provisions of the 2018 Notes and the Indenture.

     SECTION 1.4 Conversion.

     The 2018 Notes shall not be convertible into any other securities.

     SECTION 1.5 Maturity.

     The Stated Maturity of the 2018 Notes shall be April 15, 2018.

     SECTION 1.6 Place of Payment.

     As long as any 2018 Notes are Outstanding, the Partnership shall maintain in the Borough of
Manhattan, The City of New York, an office or agency where the 2018 Notes may be surrendered for
registration of transfer or for exchange, an office or agency where the 2018 Notes may be presented
for payment, and an office or agency where notices and demands to or upon the Partnership in
respect of the 2018 Notes and the Indenture may be served. All of such offices or agencies shall
initially be the corporate trust office of the Trustee in the Borough of Manhattan, The City of New
York, which on the date of this Sixth Supplemental Indenture, is located at U.S. Bank National
Association, 100 Wall Street, Suite 1600, EX-NY-WALL, New York, NY 10005, Attn: David Massa. The
Partnership may also from time to time designate one or more other offices or agencies where the
2018 Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Partnership of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York, for such purposes.

     SECTION 1.7 Subsidiary Guarantors.

     The 2018 Notes shall be entitled to the benefits of the Guarantee of each of the Subsidiary
Guarantors as provided in Article XIV of the Indenture.

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     SECTION 1.8 Other Terms of 2018 Notes.

     Without limiting the foregoing provisions of this Article 1, the terms of the 2018 Notes shall
be as provided in the form of 2018 Notes set forth in Exhibit A hereto and as provided in the
Indenture.

ARTICLE 2

AMENDMENTS TO THE INDENTURE

     The amendments and supplements contained herein shall apply to 2018 Notes only and not to any
other series of Debt Securities issued under the Original Indenture and any covenants provided
herein are expressly being included solely for the benefit of the 2018 Notes. These amendments and
supplements shall be effective for so long as there remain any 2018 Notes outstanding.

     SECTION 2.1 Definitions.

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

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

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

     (b) the present value of the total net amount of rent required to be paid under the
lease involved in such Sale-Leaseback Transaction during the remaining term thereof
(including any renewal term exercisable at the lessee’s option or period for which such
lease has been extended), discounted at the rate of interest set forth or implicit in the
terms of such lease or, if not practicable to determine such rate, the weighted average
interest rate per annum borne by the 2018 Notes compounded semiannually; and

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

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

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

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

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

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

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

     “Permitted Liens” include:

     (a) Liens existing at, or provided for under the terms of an “after-acquired property”
clause or similar term of any agreement existing on the date of, the initial issuance of the
2018 Notes or the terms of any mortgage, pledge agreement or similar agreement existing on
such date of initial issuance;

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

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

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

- 5 -

 

finance such purchase price, whether such indebtedness is incurred prior to, at the
time of or within one year after the date of such acquisition;

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

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

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

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

     (i) Liens in favor of any Person to secure obligations under provisions of any letters
of credit, bank guarantees, bonds or surety obligations required or requested by any
regulatory, governmental or court authority in connection with any contract or statute; or
any Lien upon or deposits of any assets to secure performance or bids, trade contracts,
leases or statutory obligations;

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

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

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

- 6 -

 

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

     (n) Liens to secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancings, refundings, extensions, renewals or replacements) of any Lien
referred to in clauses (a)-(m) above; provided, however, that any Liens permitted by the
terms set forth under any of such clauses (a)-(m) shall not extend to or cover any property
of the Partnership or of any of its Subsidiaries, as the case may be, other than the
property specified in such clauses and improvements thereto or proceeds therefrom;

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

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

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

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

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

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

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

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

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

     (x) Liens securing indebtedness of the Partnership or indebtedness of any Subsidiaries
of the Partnership, all or a portion of the net proceeds of which are used, substantially
concurrently with the funding thereof (and for purposes of determining “substantial
concurrence,” taking into consideration, among other things, required notices

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to be given to Holders of Outstanding Debt Securities under this Indenture (including
the 2018 Notes) in connection with such refunding, refinancing, repurchase, and the required
durations thereof), to refund, refinance, or repurchase all Outstanding Debt Securities
under this Indenture (including the 2018 Notes) including all accrued interest thereon and
reasonable fees and expenses and any premium incurred by the Partnership or its Subsidiaries
in connection therewith; and

     (y) any Lien upon any property, shares of capital stock, indebtedness or other assets
to secure indebtedness incurred by the Partnership or any of its Subsidiaries, the proceeds
of which, in whole or in part, are used to defease, in a legal or a covenant defeasance, the
obligations of the Partnership on the 2018 Notes or any other series of Debt Securities.

     “Principal Property” means, whether owned or leased on the date of the initial issuance of the
2018 Notes or acquired later:

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

     (b) any processing or manufacturing plant or terminal owned or leased by the
Partnership or any of its Subsidiaries that is located in the United States of America or
any territory or political subdivision thereof;

except, in the case of either of the foregoing clauses (a) and (b), any such assets consisting of
inventories, furniture, office fixtures and equipment (including data processing equipment),
vehicles and equipment used on, or useful with, vehicles, and any such assets, plant or terminal
which, in the opinion of the Board of Directors, is not material in relation to the activities of
the Partnership or of the Partnership and its Subsidiaries, taken as a whole.

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

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

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

     “Subsidiary Guarantors” means the Person or Persons named as the “Subsidiary Guarantors” in
the first paragraph of this instrument until a successor Person or Persons shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Subsidiary Guarantors”
shall mean such successor Person or Persons, and any other Subsidiary of the Partnership who may
execute a supplement to the Original Indenture, for the purpose of providing a Guarantee of Debt
Securities pursuant to the Original Indenture.

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     “2018 Notes” means the 6.65% Senior Notes due 2018 of the Partnership to be issued pursuant to
this Indenture. For purposes of this Indenture, the term “2018 Notes” shall, except where the
context otherwise requires, include the Guarantee.

     SECTION 2.2 Redemption.

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

     “Section 3.06. Optional Redemption.

     The 2018 Notes may be redeemed at the option of the Partnership at any time in whole, or from
time to time, in part, at the redemption prices described in the 2018 Notes. Any notice to Holders
of 2018 Notes of such redemption shall include the method of calculating the redemption price, but
need not include the redemption price itself. The actual redemption price, calculated as provided
in the 2018 Notes, will be calculated and certified to the Trustee and the Partnership by the
Independent Investment Banker.”

     SECTION 2.3 Covenants.

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

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

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

     (b) the Partnership or such Subsidiary, as the case may be, would be permitted,
pursuant to the provisions of this Indenture, to incur Debt, in a principal amount at least
equal to the Attributable Indebtedness with respect to such Sale-Leaseback Transaction,
secured by a Lien on the Principal Property subject to such Sale-Leaseback Transaction
pursuant to Section 4.13 without equally and ratably securing the 2018 Notes pursuant to
such Section; or

     (c) the Partnership or such Subsidiary, within a twelve-month period after the
effective date of such Sale-Leaseback Transaction, applies or causes to be applied an amount
equal to not less than the Attributable Indebtedness from such Sale-Leaseback Transaction
either to (a) the voluntary defeasance or the prepayment, repayment, redemption or
retirement of any 2018 Notes or other Funded Debt of the Partnership or any Subsidiary that
is not subordinated to the Debt Securities, (b) the acquisition, construction, development
or improvement of any Principal Property used or useful in the businesses of the Partnership
(including the businesses of its Subsidiaries) or (c) any combination of applications
referred to in the preceding clause (a) or (b).

     Notwithstanding the foregoing provisions of this Section, the Partnership may, and may permit
any Subsidiary to, effect any Sale-Leaseback Transaction that is not excepted by clauses

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

     Section 4.13. Limitation on Liens. The Partnership shall not, and shall not permit
any of its Subsidiaries to, incur, create, assume or suffer to exist any Lien, other than a
Permitted Lien, on any Principal Property or upon any shares of capital stock of any Subsidiary
owning or leasing any Principal Property, whether now existing or hereafter created or acquired by
the Partnership or such Subsidiary, to secure any Debt of the Partnership or any other Person,
without in any such case making effective provision whereby any and all 2018 Notes then Outstanding
will be secured by a Lien equally and ratably with, or prior to, such Debt for so long as such Debt
shall be so secured. Notwithstanding the foregoing, the Partnership may, and may permit any
Subsidiary to, incur, create, assume or suffer to exist any Lien (other than a Permitted Lien) on
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, without securing the 2018
Notes as provided in this Section, provided that the aggregate principal amount of all Debt then
outstanding secured by any such Lien together with the aggregate amount of Attributable
Indebtedness deemed to be outstanding in respect of all Sale-Leaseback Transactions (exclusive of
any such Sale-Leaseback Transactions otherwise permitted under clauses (a) and (c) of Section
4.12), does not exceed 10% of Consolidated Net Tangible Assets.

     Section 4.14. Additional Subsidiary Guarantors. If at any time after the original
issuance of the 2018 Notes, including following any release of a Subsidiary Guarantor from its
Guarantee under this Indenture, any Subsidiary of the Partnership (including any future Subsidiary
of the Partnership) guarantees any Funded Debt of the Partnership, then the Partnership shall cause
such Subsidiary to guarantee the 2018 Notes and in connection with such guarantee, to execute and
deliver an Indenture supplemental hereto pursuant to Section 9.01(g) simultaneously therewith. In
order to further evidence its Guarantee, such Subsidiary shall execute and deliver to the Trustee a
notation relating to such Guarantee in accordance with Section 14.02.”

     SECTION 2.4 Events of Default.

     The following additional Event of Default shall be added to those in clauses (a)-(g) of
Section 6.01 of the Original Indenture in relation to the 2018 Notes:

     “(h) default in the payment by the Partnership or any of its Subsidiaries at the Stated
Maturity thereof, after the expiration of any applicable grace period, of any principal of any Debt
of the Partnership (other than the 2018 Notes) or any of its Subsidiaries (other than the Guarantee
of the 2018 Notes) outstanding in an aggregate principal amount in excess of $50,000,000, or the
occurrence of any other default thereunder (including, without limitation, the failure to pay
interest or any premium), the effect of which default is to cause such Debt to become, or to be
declared, due prior to its Stated Maturity and such acceleration is not rescinded within 60 days
after there has been given, by registered or certified mail, to the Partnership and the Subsidiary
Guarantors by the Trustee or to the Partnership, the Subsidiary Guarantors and the Trustee by the

- 10 -

 

Holders of at least 25% in principal amount of the Outstanding 2018 Notes a written notice
specifying such default and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder, and the receipt by the Partnership and the Subsidiary Guarantors of such
written notice.”

     SECTION 2.5 Administration of Trust.

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

     “Section 7.13. Administration of Trust.

     The Trustee shall administer the trust of the Indenture and shall perform a substantial part
of its obligations relating to the 2018 Notes and this Indenture at its corporate trust office in
The City of New York.”

     SECTION 2.6 Required Notices or Demands.

     Section 13.03 of the Original Indenture shall be amended by deleting the addresses and contact
information appearing therein and inserting the following new addresses and contact information:

“If to the Partnership or the Subsidiary Guarantors:

TEPPCO Partners, L.P.

TE Products Pipeline Company, LLC

TCTM, L.P.

TEPPCO Midstream Companies, LLC

Val Verde Gas Gathering Company, L.P.

1100 Louisiana Street, Suite 1600

Houston, Texas 77002

Attention: Chief Financial Officer

Telecopy No. 713-381-8225

If to the Trustee:

U.S. Bank National Association

5555 San Felipe Street, Suite 1150

Houston, Texas 77056

Attention: Steven A. Finklea, CCTS- Vice President

Telecopy No. 713-235-9213”

ARTICLE 3

VAL VERDE, TE PRODUCTS AND TEPPCO MIDSTREAM GUARANTEE

     SECTION 3.1 Val Verde, TE Products and TEPPCO Midstream Guarantee.

     Each of Val Verde, TE Products and TEPPCO Midstream hereby acknowledges and agrees that it is
a Subsidiary Guarantor with respect to the 2018 Notes and is executing and delivering this Sixth
Supplemental Indenture for the purpose of providing a Guarantee of the

- 11 -

 

2018 Notes, and accordingly, the obligations of each of Val Verde, TE Products and TEPPCO
Midstream as a Subsidiary Guarantor of the 2018 Notes shall be governed by the Original Indenture,
as amended and supplemented by this Sixth Supplemental Indenture, as may be further amended and
supplemented from time to time.

ARTICLE 4

MISCELLANEOUS PROVISIONS

     SECTION 4.1 Integral Part.

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

     SECTION 4.2 General Definitions.

     For all purposes of this Sixth Supplemental Indenture:

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

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

     SECTION 4.3 Adoption, Ratification and Confirmation.

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

     SECTION 4.4 Counterparts.

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

     SECTION 4.5 Governing Law.

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

- 12 -

 

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

	 	 	 	 	 	 	 	 	 
	 	 	TEPPCO PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Texas Eastern Products Pipeline Company, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TE PRODUCTS PIPELINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TCTM, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its general partner	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEPPCO MIDSTREAM COMPANIES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO GP, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

- 13 -

 

	 	 	 	 	 	 	 	 	 
	 	 	VAL VERDE GAS GATHERING COMPANY L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO NGL Pipelines, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

- 14 -

 

EXHIBIT A

[FORM OF FACE OF 2018 NOTE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMCH 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.]1

TEPPCO PARTNERS, L.P.

6.65% SENIOR NOTE DUE 2018

	 	 	 
	No.                    

	 	$                    

CUSIP No. 872384AE2

     TEPPCO Partners, L.P., a Delaware limited partnership (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                                                             or registered assigns the principal sum of
                                                            Dollars on April 15, 2018 [or such greater or lesser amount as is
indicated on the Schedule of Exchanges of Securities attached hereto]2, at the office or
agency of the Company referred to below, and to pay interest thereon, commencing on October 15,
2008 and continuing semiannually thereafter, on April 15 and October 15 of each year, from March
27, 2008, or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, at the rate of 6.65% per annum, until the principal hereof is paid or duly provided
for, and (to the extent lawful) to pay on demand, interest on any overdue interest at the rate
borne by the Securities from the date on which such overdue interest becomes payable to the date
payment of such interest has been made or duly provided for. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date (other than at maturity) will,
as provided in such Indenture, be paid to the Person in whose name this Security (or one or more
predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be the April 1 or October 1 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may
be paid to the Person in whose name this Security (or one or more predecessor Securities) is
registered at the close of business on a special record date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such special record date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture. Interest on the Securities of this series shall be
computed on the basis of a 360-day year comprised of twelve 30-day months.

     The Company shall pay principal, premium, if any, and interest on this security 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 corporate trust office of
the Trustee, which on the date hereof is located at 100 Wall Street, Suite 1600, EX-NY-WALL, New
York, NY 10005, Attn: David Massa, or at such other office or agency of the Company as may be
maintained for such purpose, or, at the option of the Company, payment of interest may be made by
check mailed to the Holders on the

 

			
	1	 	These paragraphs should be included only if the Debt
Security is a Global Security.
	 
	2	 	This clause should be included only if the Debt
Security is a Global Security.

A- 1

 

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.

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

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

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

     Dated:
                    

	 	 	 	 	 	 	 	 	 
	 	 	TEPPCO PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Texas Eastern Products Pipeline Company, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	William G. Manias	 	 
	 

	 	 	 	 	 	Vice President and Chief Financial Officer	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	Dated:                	 	U.S. BANK NATIONAL ASSOCIATION,

As Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Authorized Signatory	 	 

A- 2

 

[FORM OF REVERSE OF 2018 NOTE]

     This Security is one of a duly authorized issue of the series of Debt Securities of the
Company designated as its 6.65% Senior Notes due 2018 (such series being herein called the
“Securities”), which is issued under, with securities of one or more additional series that may be
issued under, an indenture dated as of February 20, 2002, among the Company, the Subsidiary
Guarantors and U.S. Bank National Association, successor to Wachovia Bank, National Association and
First Union National Bank, as trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), as amended and supplemented by the Sixth Supplemental
Indenture dated as of March 27, 2008 (such Indenture, as so amended and supplemented, being called
the “Indenture”), to which Indenture and all future indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Subsidiary Guarantors, the Trustee and the Holders of
the Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered.

     The Securities are redeemable, at the option of the Company, at any time in whole, or from
time to time in 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; and (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 Make-Whole Price) on the Securities to be redeemed (exclusive of
interest accrued to the date of redemption (the “Redemption Date”)) discounted to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the
applicable Treasury Yield plus 50 basis points; plus, in either case, accrued interest to the
Redemption Date.

     The actual Make-Whole Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Company by the Independent Investment Banker. For purposes of determining
the Make-Whole Price, the following definitions are applicable:

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Securities,
the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third
Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming
a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the applicable Comparable Treasury Price for 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 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 terms of the Securities to be redeemed; provided, however, that if no
maturity is within three months before or after the maturity date for the Securities, yields for
the two published maturities most closely corresponding to such United States Treasury security
will be determined and the treasury rate will be interpolated or extrapolated from those yields on
a straight line basis rounding to the nearest month.

     “Independent Investment Banker” means any of UBS Securities LLC, J.P. Morgan Securities
Inc., SunTrust Robinson Humphrey, Inc. and Wachovia Capital Markets, LLC (and their respective
successors) or, if no such firm is willing and able to select the applicable Comparable Treasury
Issue or perform the other functions of the Independent Investment Banker provided in the
Indenture, an independent investment banking institution of national standing appointed by the
Trustee and reasonably acceptable to the Company.

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

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

A-3

 

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date for the Securities, an average, as determined by an Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities
(expressed in each case as a percentage of its principal amount) quoted in writing to an
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.

     Securities called for optional redemption become due on the Redemption Date. Notices of
optional redemption will be mailed at least 30 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 method of calculating such Make-Whole Price and the place(s)
that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the
Company defaults in payment of the Make-Whole 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 or by any other method the Trustee deems fair and appropriate.

     The Securities may be redeemed in part in multiplies of $1,000 only. Any such redemption
will also comply with Article III of the Indenture.

     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.

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

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

     No Holder of the Securities may pursue any remedy under the Indenture unless the Trustee shall
have failed to act within 60 days after notice of an Event of Default with respect to the
Securities and written request by Holders of at least 25% in principal amount of the Outstanding
Securities, and the offer to the Trustee of indemnity reasonably satisfactory to it; however, such
provision does not affect the right to sue for enforcement of any overdue payment on a Security by
the Holder thereof. Subject to certain limitations, Holders of a majority in principal amount of
the Outstanding Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders notice of any continuing default (except default in payment of
principal, premium or interest) if it determines in good faith that withholding the notice is in
the interest of the Holders. The Company is required to file a report with the Trustee each year
as to the absence or existence of defaults.

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

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

A-4

 

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

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

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

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

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

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

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

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture. The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to TEPPCO Partners, L.P., 1100
Louisiana Street, Suite 1800, Houston, Texas 77002, Attn: Investor Relations.

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

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

A-5

 

ASSIGNMENT FORM

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

 

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

 

 

 

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

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

Dated:                    

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

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

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Phone No.:	 	 	 	 
	 

	 	 	 	 	 	 

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

A-6

 

SCHEDULE OF EXCHANGES OF SECURITIES3

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount	 	 	 	 	 	 	 	 
	of this Global Security	 	Authorized	 	 	 	 	 	Amount of
	Following Such	 	Signatory of	 	Amount of Decrease in	 	Increase in
	Decrease Date	 	Trustee or Security	 	Principal Amount	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Security	 	of this Global Security

 

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

A-7

 

NOTATION OF GUARANTEE

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

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

TE PRODUCTS PIPELINE COMPANY, LLC

By: TEPPCO GP, Inc., its managing member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	William G. Manias 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

TCTM, L.P.

By: TEPPCO GP, Inc., its general partner

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	William G. Manias 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

TEPPCO MIDSTREAM COMPANIES, LLC

By: TEPPCO GP, Inc., its managing member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	William G. Manias 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

VAL VERDE GAS GATHERING COMPANY L.P.

By: TEPPCO NGL Pipelines, LLC,

        its general partner

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	William G. Manias 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

A-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]