Document:

Exhibit 4.3

 

 

K-SEA OPERATING
PARTNERSHIP L.P.

 

as Issuer

 

K-SEA TRANSPORTATION
PARTNERS L.P.

 

as Guarantor

 

and

 

K-SEA TRANSPORTATION INC.

 

NORFOLK ENVIRONMENTAL
SERVICES, INC.

 

K-SEA ACQUISITION1, LLC

 

and

 

K-SEA ACQUISITION2, LLC

 

as Potential Subsidiary Guarantors

 

and

 

[                                    ]

 

as Trustee

 

 

Indenture

 

Dated as of                          ,
2005

 

Debt Securities

 

 

 

 

K-SEA OPERATING PARTNERSHIP L.P.

 

Reconciliation and tie between Trust Indenture Act
of 1939

and Indenture, dated as of                          , 2005

 

 

	
  Section of

  	
   

  	
   

  
	
  Trust Indenture

  	
   

  	
  Section(s) of

  
	
  Act of 1939

  	
   

  	
   

  	
  Indenture

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
   

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.08, 7.10

  
	
  § 311

  	
   

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  § 312

  	
   

  	
  (a)

  	
   

  	
  2.07

  
	
   

  	
   

  	
  (b)

  	
   

  	
  11.03

  
	
   

  	
   

  	
  (c)

  	
   

  	
  11.03

  
	
  § 313

  	
   

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  § 314

  	
   

  	
  (a)

  	
   

  	
  4.03, 4.04

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  11.04

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  11.04

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (e)

  	
   

  	
  11.05

  
	
  § 315

  	
   

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
   

  	
  (d)(1)

  	
   

  	
  7.01(c)(1)

  
	
   

  	
   

  	
  (d)(2)

  	
   

  	
  7.01(c)(2)

  
	
   

  	
   

  	
  (d)(3)

  	
   

  	
  7.01(c)(3)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  § 316

  	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(last sentence)

  	
   

  	
  2.11

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  § 317

  	
   

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  2.06

  
	
  § 318

  	
   

  	
  (a)

  	
   

  	
  11.01

  
						

 

Note:                   This reconciliation and tie shall
not, for any purpose, be deemed to be a part of the Indenture.

 

i

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions

  	
   

  
	
  SECTION 1.02

  	
  Other Definitions

  	
   

  
	
  SECTION 1.03

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  
	
  SECTION 1.04

  	
  Rules of
  Construction

  	
   

  
	
  SECTION 1.05

  	
  Non-Recourse
  to the General Partner; No Personal Liability of Officers, Directors,
  Employees or Partners

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Amount
  Unlimited; Issuable in Series

  	
   

  
	
  SECTION 2.02

  	
  Denominations

  	
   

  
	
  SECTION 2.03

  	
  Forms Generally

  	
   

  
	
  SECTION 2.04

  	
  Execution,
  Authentication, Delivery and Dating

  	
   

  
	
  SECTION 2.05

  	
  Registrar
  and Paying Agent

  	
   

  
	
  SECTION 2.06

  	
  Paying Agent to Hold
  Money in Trust

  	
   

  
	
  SECTION 2.07

  	
  Holder Lists

  	
   

  
	
  SECTION 2.08

  	
  Transfer and Exchange

  	
   

  
	
  SECTION 2.09

  	
  Replacement Securities

  	
   

  
	
  SECTION 2.10

  	
  Outstanding Securities

  	
   

  
	
  SECTION 2.11

  	
  Original
  Issue Discount and Treasury Securities

  	
   

  
	
  SECTION 2.12

  	
  Temporary Securities

  	
   

  
	
  SECTION 2.13

  	
  Cancellation

  	
   

  
	
  SECTION 2.14

  	
  Payments;
  Defaulted Interest

  	
   

  
	
  SECTION 2.15

  	
  Persons Deemed Owners

  	
   

  
	
  SECTION 2.16

  	
  Computation of Interest

  	
   

  
	
  SECTION 2.17

  	
  Global Securities;
  Book-Entry Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Applicability of
  Article

  	
   

  
	
  SECTION 3.02

  	
  Notice to the Trustee

  	
   

  
	
  SECTION 3.03

  	
  Selection of
  Securities To Be Redeemed

  	
   

  
	
  SECTION 3.04

  	
  Notice of Redemption

  	
   

  
	
  SECTION 3.05

  	
  Effect of Notice of
  Redemption

  	
   

  
	
  SECTION 3.06

  	
  Deposit of
  Redemption Price

  	
   

  
	
  SECTION 3.07

  	
  Securities Redeemed
  in Part

  	
   

  
	
  SECTION 3.08

  	
  Purchase of Securities

  	
   

  
	
  SECTION 3.09

  	
  Mandatory and
  Optional Sinking Funds

  	
   

  
	
  SECTION 3.10

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
   

  
	
  SECTION 3.11

  	
  Redemption
  of Securities for Sinking Fund

  	
   

  

 

ii

 

	
  ARTICLE IV
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Payment of Securities

  	
   

  
	
  SECTION 4.02

  	
  Maintenance of Office or Agency

  	
   

  
	
  SECTION 4.03

  	
  SEC Reports; Financial Statements

  	
   

  
	
  SECTION 4.04

  	
  Compliance Certificate

  	
   

  
	
  SECTION 4.05

  	
  Existence

  	
   

  
	
  SECTION 4.06

  	
  Waiver of Stay, Extension or Usury
  Laws

  	
   

  
	
  SECTION 4.07

  	
  Additional Amounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  SUCCESSORS 

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Limitations on Mergers and
  Consolidations

  	
   

  
	
  SECTION 5.02

  	
  Successor Person Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Events of Default

  	
   

  
	
  SECTION 6.02

  	
  Acceleration

  	
   

  
	
  SECTION 6.03

  	
  Other Remedies

  	
   

  
	
  SECTION 6.04

  	
  Waiver of Defaults

  	
   

  
	
  SECTION 6.05

  	
  Control by Majority

  	
   

  
	
  SECTION 6.06

  	
  Limitations on Suits

  	
   

  
	
  SECTION 6.07

  	
  Rights of Holders to Receive Payment

  	
   

  
	
  SECTION 6.08

  	
  Collection Suit by Trustee

  	
   

  
	
  SECTION 6.09

  	
  Trustee May File Proofs of Claim

  	
   

  
	
  SECTION 6.10

  	
  Priorities

  	
   

  
	
  SECTION 6.11

  	
  Undertaking for Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Duties of Trustee

  	
   

  
	
  SECTION 7.02

  	
  Rights of Trustee

  	
   

  
	
  SECTION 7.03

  	
  May Hold Securities

  	
   

  
	
  SECTION 7.04

  	
  Trustee’s Disclaimer

  	
   

  
	
  SECTION 7.05

  	
  Notice of Defaults

  	
   

  
	
  SECTION 7.06

  	
  Reports by Trustee to Holders

  	
   

  
	
  SECTION 7.07

  	
  Compensation and Indemnity

  	
   

  
	
  SECTION 7.08

  	
  Replacement of Trustee

  	
   

  
	
  SECTION 7.09

  	
  Successor Trustee by Merger, etc.

  	
   

  
	
  SECTION 7.10

  	
  Eligibility; Disqualification

  	
   

  
	
  SECTION 7.11

  	
  Preferential Collection of Claims
  Against the Partnership, the Guarantor or a Subsidiary Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  Termination of the Partnership’s, the
  Guarantor’s and the Subsidiary Guarantors’ Obligations

  	
   

  
	
  SECTION 8.02

  	
  Application of Trust Money

  	
   

  
	
  SECTION 8.03

  	
  Repayment to Partnership, Guarantor
  or Subsidiary Guarantor

  	
   

  

 

iii

 

	
  SECTION 8.04

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  SUPPLEMENTAL INDENTURES AND AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
  Without Consent of Holders

  	
   

  
	
  SECTION 9.02

  	
  With Consent of Holders

  	
   

  
	
  SECTION 9.03

  	
  Compliance with the Trust Indenture
  Act

  	
   

  
	
  SECTION 9.04

  	
  Revocation and Effect of Consents

  	
   

  
	
  SECTION 9.05

  	
  Notation on or Exchange of Securities

  	
   

  
	
  SECTION 9.06

  	
  Trustee to Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
  Guarantee

  	
   

  
	
  SECTION 10.02

  	
  Execution and Delivery of Guarantees

  	
   

  
	
  SECTION 10.03

  	
  Limitation on Liability of the
  Guarantor and the Subsidiary Guarantors

  	
   

  
	
  SECTION 10.04

  	
  Release of Guarantor or Subsidiary
  Guarantors from Guarantee

  	
   

  
	
  SECTION 10.05

  	
  Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
  Trust Indenture Act Controls

  	
   

  
	
  SECTION 11.02

  	
  Notices

  	
   

  
	
  SECTION 11.03

  	
  Communication by Holders with Other
  Holders

  	
   

  
	
  SECTION 11.04

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
   

  
	
  SECTION 11.05

  	
  Statements Required in Certificate
  or Opinion

  	
   

  
	
  SECTION 11.06

  	
  Rules by Trustee and Agents

  	
   

  
	
  SECTION 11.07

  	
  Legal Holidays

  	
   

  
	
  SECTION 11.08

  	
  No Recourse Against Others

  	
   

  
	
  SECTION 11.09

  	
  Governing Law

  	
   

  
	
  SECTION 11.10

  	
  No Adverse Interpretation of Other
  Agreements

  	
   

  
	
  SECTION 11.11

  	
  Successors

  	
   

  
	
  SECTION 11.12

  	
  Severability

  	
   

  
	
  SECTION 11.13

  	
  Counterpart Originals

  	
   

  
	
  SECTION 11.14

  	
  Table of Contents, Headings, etc.

  	
   

  

 

iv

 

INDENTURE (this “Indenture”) dated as of                              ,
2005 among K-Sea Operating Partnership L.P., a Delaware limited partnership
(the “Partnership”), K-Sea Transportation Partners L.P., a Delaware limited
partnership (the “Guarantor”), K-Sea Transportation Inc., a Delaware
corporation and indirect wholly owned subsidiary of the Partnership (“Transportation”),
Norfolk Environmental Services, Inc., a Delaware corporation and indirect
wholly owned subsidiary of the Partnership (“Norfolk”), K-Sea Acquisition1,
LLC, a Delaware limited liability company and indirect wholly owned subsidiary
of the Partnership (“Acquisition1”), K-Sea Acquisition2, LLC, a Delaware
limited liability company and indirect wholly owned subsidiary of the
Partnership (“Acquisition2” and together with Transportation, Norfolk and
Acquisition1, the “Potential Subsidiary Guarantors”) and [                     ],
a                              ,
as trustee (the “Trustee”).

 

The Partnership, the Guarantor and the Potential Subsidiary
Guarantors have duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of the Partnership’s debentures,
notes, bonds or other evidences of indebtedness to be issued in one or more
series unlimited as to principal amount (herein called the “Securities”), and
the related Guarantees (as hereinafter defined), as provided in this Indenture.

 

The Partnership, the Guarantor and the Potential Subsidiary
Guarantors are members of the same consolidated group of companies. The
Guarantor and the Potential Subsidiary Guarantors will derive direct and
indirect economic benefit from the issuance of the Securities. Accordingly, each
Potential Subsidiary Guarantor has duly authorized the execution and delivery
of this Indenture in light of the possibility that the Guarantor and such
Potential Subsidiary Guarantor will provide its full and unconditional
guarantee of a series of the Securities to the extent provided in this
Indenture. The Guarantor has duly authorized the execution and delivery of this
Indenture to provide for its full and unconditional guarantee of the Securities
to the extent provided in this Indenture.

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01                                                                    Definitions.

 

“Additional Amounts” means any additional amounts
required by the express terms of a Security or by or pursuant to a Board
Resolution, under circumstances specified therein or pursuant thereto, to be
paid by the Partnership, the Guarantor or any Subsidiary Guarantor, as the case
may be, with respect to certain taxes, assessments or other governmental
charges imposed on certain Holders and that are owing to such Holders.

 

1

 

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person.  For purposes of this definition, “control” of
a Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled”
shall have meanings correlative to the foregoing.

 

“Agent” means any Registrar or Paying Agent.

 

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

 

“Board of Directors” means the Board of Directors of
the General Partner or any authorized committee of the Board of Directors of
the General Partner or any directors and/or officers of the General Partner to
whom such Board of Directors or such committee shall have duly delegated its
authority to act hereunder.

 

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the General Partner to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.

 

“Business Day” means any day that is not a Legal
Holiday.

 

“Corporate Trust Office of the Trustee” means the
office of the Trustee located at                                                       ,
Attention:                                              ,
and as may be located at such other address as the Trustee may give notice to
the Partnership, the Guarantor and the Subsidiary Guarantors.

 

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

 

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

 

“deliver” or “delivery”
means, in the context of certificated Securities, actual physical delivery of
the certificated Securities to the relevant Person required hereunder, together
with all endorsements, and in the context of Global Securities, the designation
on the records of the Depositary of a change in the beneficial interests of a
holder in a Global Security.

 

“Depositary” means, with respect to the Securities of
any series issuable or issued in whole or in part in global form, the Person
specified pursuant to Section 2.01 hereof as the initial Depositary with
respect to the Securities of such series, until a successor shall have been
appointed and become such pursuant to the applicable provision of this
Indenture, and thereafter “Depositary” shall mean or include such successor.

 

“Dollar” or “$” means a dollar or other equivalent
unit in such coin or currency of the United States as at the time shall be
legal tender for the payment of public and private debt.

 

2

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended, and any successor statute.

 

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

 

“General Partner” means K-Sea OLP GP, LLC, a Delaware
limited liability company.

 

“Global Security” means a Security that is issued in
global form in the name of the Depositary with respect thereto or its nominee.

 

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

 

“Guarantee” means the guarantee of the Partnership’s
obligations under the Securities of a series by the Guarantor or a Subsidiary
Guarantor (specified with respect to such series as contemplated by Section 2.01(9)) as
provided in Article X.

 

“Guarantor” means the Person named as the “Guarantor”
in the first paragraph of this Indenture until a successor person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter, “Guarantor” shall mean such successor Person or Persons who may
execute this Indenture, or a supplement thereto, for the purpose of providing a
Guarantee pursuant to this Indenture.

 

“Holder” means a Person in whose name a Security is
registered.

 

“Indenture” means this Indenture as amended or
supplemented from time to time pursuant to the provisions hereof, and includes
the terms of a particular series of Securities established as contemplated by Section 2.01.

 

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

 

3

 

“Interest Payment Date,” when used with respect to any
Security, shall have the meaning assigned to such term in the Security as
contemplated by Section 2.01.

 

“Issue Date” means, with respect to Securities of a
series, the first date on which the Securities of such series are originally
issued under this Indenture.

 

"K-Sea General Partner GP LLC" means K-Sea
General Partner GP LLC, a Delaware limited liability company and the general
partner of the general partner of the Guarantor.

 

“Legal Holiday” means a Saturday, a Sunday or a day on
which banking institutions in any of The City of New York, New York or a Place
of Payment are authorized or obligated by law, regulation or executive order to
remain closed.

 

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

 

“Officer” means the Chief Executive Officer, the
President, the Chief Operating Officer, any Vice President, the Chief Financial
Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary
or any Assistant Secretary of a Person.

 

“Officers’ Certificate” means a certificate signed by
two Officers of a Person.

 

“Opinion of Counsel” means a written opinion from
legal counsel who is acceptable to the Trustee. 
Such counsel may be an employee of or counsel to the Partnership, the
General Partner, the Guarantor, a Subsidiary Guarantor or the Trustee.

 

“Original Issue Discount Security” means any Security
that provides for an amount less than the principal amount thereof to be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 6.02.

 

“Partnership” means the Person named as the “Partnership”
in the first paragraph of this Indenture until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Partnership” shall mean such successor Person; provided,
however, that for purposes of any provision contained herein which
is required by the TIA, “Partnership” shall also mean each other obligor (if
any), other than the Guarantor or a Subsidiary Guarantor, on the Securities of
a series.

 

“Partnership Order” and “Partnership Request” mean,
respectively, a written order or request signed in the name of the Partnership,
the Guarantor and each Subsidiary Guarantor by two Officers of the General
Partner and delivered to the Trustee.

 

“Person” means any individual, corporation,
partnership, limited liability company, joint venture,
incorporated or unincorporated association, joint stock company, trust,
unincorporated organization or government or other agency, instrumentality or
political subdivision thereof or other entity of any kind.

 

“Place of Payment” means, with respect to the
Securities of any series, the place or places where the principal of, premium
(if any) and interest on and any Additional Amounts 

 

4

 

with
respect to the Securities of that series are payable as specified in accordance
with Section 2.01 subject to the provisions of Section 4.02.

 

“principal” of a Security
means the principal of the Security plus, when appropriate, the premium, if
any, on the Security.

 

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

 

“Redemption Price” means, with respect to any Security
to be redeemed, the price at which it is to be redeemed pursuant to this
Indenture.

 

“Responsible Officer” means any officer within the
corporate trust department of the Trustee having direct responsibility for the
administration of this Indenture or any other officer to whom any corporate
trust matter is referred because of such person’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Rule 144A Securities” means Securities of a
series designated pursuant to Section 2.01 as entitled to the benefits of Section 4.03(b).

 

“SEC” means the Securities and Exchange Commission.

 

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

 

“Security Custodian” means, with respect to Securities
of a series issued in global form, the Trustee for Securities of such series,
as custodian with respect to the Securities of such series, or any successor
entity thereto.

 

“Significant Subsidiary” means a Subsidiary of the
Partnership that is a “significant subsidiary” of the Partnership as such term
is defined in Rule 1-02(w) of Regulation S-X as of the date hereof.

 

“Stated Maturity” means, when used with respect to any
Security or any installment of principal thereof or interest thereon, the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable.

 

“Subsidiary” of any Person means:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of equity interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers,
trustees or equivalent Persons thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person or any combination thereof; or

 

5

 

(2)                                  in the case of a partnership, more than 50% of the partners’
equity interests, considering all partners’ equity interests as a single class,
is at such time of determination owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of such Person or any combination
thereof.

 

“Subsidiary Guarantors” means, with respect to any
series of Securities, the Person or Persons, if any, named in accordance with Section 2.01(9) as
the “Subsidiary Guarantors” (i) in or pursuant to a Board Resolution, and
set forth, or determined in the manner provided, in an Officers’ Certificate of
the General Partner or in a Partnership Order, or (ii) in an indenture
supplemental hereto establishing the terms of such series of Securities until a
successor Person or Persons shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Subsidiary Guarantors” with
respect to such series of Securities shall mean such successor Person or
Persons, and any other Subsidiary of the Partnership who may execute this
Indenture, or a supplement thereto, for the purpose of providing a Guarantee for
such series of Securities pursuant to this Indenture.  If a series of Securities does not have any
Subsidiary Guarantors, all references in this Indenture to Subsidiary
Guarantors shall be ignored with respect to such series of Securities.

 

“surrender” shall have the
same meaning as “deliver” in the context of the surrender of a Security.

 

“TIA” means the Trust Indenture Act of 1939, as
amended, as in effect on the date hereof;  provided, however, that, in the event the Trust Indenture Act of
1939 is amended after such date, “TIA” means, to the extent required by any
such amendment, the Trust Indenture Act of 1939 as so amended.

 

“Trustee” means the Person named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture, and thereafter “Trustee” means each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any series means the Trustee with
respect to Securities of that series.

 

“United States” means the United States of America
(including the District of Columbia) and its territories and possessions, which
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

 

“U.S. Government Obligations” means Government
Obligations with respect to Securities payable in Dollars.

 

6

 

SECTION 1.02                                                                    Other
Definitions.

 

	
   

  	
   

  	
  Defined

  
	
  Term

  	
   

  	
  in Section

  
	
  “Agent Members”

  	
   

  	
  2.17

  
	
  “Bankruptcy Custodian”

  	
   

  	
  6.01

  
	
  “covenant defeasance”

  	
   

  	
  8.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Funding Guarantor”

  	
   

  	
  10.05

  
	
  “Judgment Currency”

  	
   

  	
  6.10

  
	
  “legal defeasance”

  	
   

  	
  8.01

  
	
  "mandatory sinking fund payment"

  	
   

  	
  3.09

  
	
  “optional sinking fund payment”

  	
   

  	
  3.09

  
	
  “Paying Agent”

  	
   

  	
  2.05

  
	
  “Registrar”

  	
   

  	
  2.05

  
	
  “Required Currency”

  	
   

  	
  6.10

  
	
  “Successor”

  	
   

  	
  5.01

  

 

SECTION 1.03                                                                    Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture (and if the Indenture is not qualified under the TIA at the time, as
if it were so qualified unless otherwise
provided).  The following TIA terms used
in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means
the Securities.

 

“indenture security holder”
means a Holder.

 

“indenture to be qualified”
means this Indenture.

 

“indenture trustee” or “institutional
trustee” means the Trustee.

 

“obligor” on the indenture
securities means the Partnership, the Guarantor, any Potential Subsidiary
Guarantor or any other obligor on the Securities.

 

All terms used in this Indenture that are defined by
the TIA, defined by a TIA reference to another statute or defined by an SEC rule under
the TIA have the meanings so assigned to them.

 

SECTION 1.04                                                                    Rules of
Construction.

 

Unless the context otherwise requires:

 

(1)                                  a term has the meaning assigned to it;

 

7

 

(2)                                  an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;

 

(3)                                  “or” is not exclusive;

 

(4)                                  words in the singular include the plural, and in the plural
include the singular;

 

(5)                                  provisions apply to successive events and transactions; and

 

(6)                                  all references in this instrument to Articles and Sections
are references to the corresponding Articles and Sections in and of this
instrument.

 

SECTION 1.05                       Non-Recourse
to the General Partner; No Personal Liability of Officers, Directors,
Employees or Partners.

 

Obligations of the Partnership, the Guarantor and a
Subsidiary Guarantor under this Indenture, the Securities and the related
Guarantees are non-recourse to the General Partner, and its respective Affiliates
(other than the Partnership, the Guarantor and such Subsidiary Guarantor), and
payable only out of cash flow and assets of the Partnership, the Guarantor and such
Subsidiary Guarantor.  The Trustee, and
each Holder of a Security by its acceptance thereof, will be deemed to have
agreed in this Indenture that (1) neither the General Partner nor its assets
(nor any of its respective Affiliates other than the Partnership, the Guarantor
and a Subsidiary Guarantor, nor its respective assets) shall be liable for any
of the obligations of the Partnership, the Guarantor and a Subsidiary Guarantor
under this Indenture, such Securities or such related Guarantees, and (2) no
director, manager, officer, employee, partner or unitholder, as such, of the
Partnership, the Guarantor, a Subsidiary Guarantor, the Trustee, the General
Partner or any Affiliate of any of the foregoing entities shall have any
personal liability in respect of the obligations of the Partnership, the
Guarantor and a Subsidiary Guarantor under this Indenture, such Securities or
such related Guarantees by reason of his, her or its status.

 

ARTICLE II

THE SECURITIES

 

SECTION 2.01                                                                    Amount Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities that may
be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more
series.  There shall be established in or
pursuant to a Board Resolution, and set forth, or determined in the manner
provided, in an Officers’ Certificate of the General Partner or in a
Partnership Order, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series:

 

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

 

8

 

(2)                                  if
there is to be a limit, the limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 and except
for any Securities which, pursuant to Section 2.04 or 2.17, are deemed
never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series,
the authorized aggregate principal amount of such series may be increased
before or after the issuance of any Securities of the series by a Board Resolution
(or action pursuant to a Board Resolution) to such effect;

 

(3)                                  whether
any Securities of the series are to be issuable initially in temporary global
form and whether any Securities of the series are to be issuable in permanent
global form, as Global Securities or otherwise, and, if so, whether beneficial
owners of interests in any such Global Security may exchange such interests for
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 2.17, and the initial
Depositary and Security Custodian, if any, for any Global Security or
Securities of such series;

 

(4)                                  the
manner in which any interest payable on a temporary Global Security on any
Interest Payment Date will be paid if other than in the manner provided in Section 2.14;

 

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

 

(6)                                  the
rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, whether and under what circumstances
Additional Amounts with respect to such Securities shall be payable, the date
or dates from which such interest shall accrue, the Interest Payment Dates on
which such interest shall be payable and the record date for the interest
payable on any Securities on any Interest Payment Date, or if other than
provided herein, the Person to whom any interest on Securities of the series
shall be payable;

 

(7)                                  the
place or places where, subject to the provisions of Section 4.02, the
principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities of the series shall be payable;

 

(8)                                  the
period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of
the Partnership, if the Partnership is to have that option, and the manner in
which the Partnership must exercise any such option, if different from those
set forth herein;

 

(9)                                  whether Securities of the series are entitled to the benefits
of any Guarantee of any Subsidiary Guarantor pursuant to this Indenture, the
identity of any 

 

9

 

such Subsidiary
Guarantors and any terms of such Guarantee with respect to the Securities of
the series in addition to those set forth in Article X, or any exceptions
to or changes to those set forth in Article X;

 

(10)                            the
obligation, if any, of the Partnership to redeem, purchase or repay Securities
of the series pursuant to any sinking fund or analogous provisions or at the
option of a Holder thereof and the period or periods within which, the price or
prices (whether denominated in cash, securities or otherwise) at which and the
terms and conditions upon which Securities of the series shall be redeemed, purchased
or repaid in whole or in part pursuant to such obligation;

 

(11)                            if other than denominations of $1,000 and any integral
multiple thereof, the denomination in which any Securities of the series shall
be issuable;

 

(12)                            if
other than Dollars, the form, including equity securities, other debt
securities (including Securities), warrants or any other securities or property
of the Partnership, the Guarantor, any Subsidiary Guarantor or any other
Person, in which payment of the principal of, premium (if any) and interest on
and any Additional Amounts with respect to the Securities of the series shall
be payable;

 

(13)                            if
the amount of payments of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series may be
determined with reference to any commodities, currencies or indices, values,
rates or prices or any other index or formula, the manner in which such amounts
shall be determined;

 

(14)                            if other than the entire principal amount thereof, the
portion of the principal amount of Securities of the series that shall be
payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

 

(15)                            any additional means of satisfaction and discharge of this
Indenture and any additional conditions or limitations to discharge with
respect to Securities of the series and the related Guarantees pursuant to Article VIII
or any modifications of or deletions from such conditions or limitations;

 

(16)                            any
deletions or modifications of or additions to the Events of Default set forth
in Section 6.01 or covenants of the Partnership, the Guarantor or any
Subsidiary Guarantor set forth in Article IV pertaining to the Securities
of the series;

 

(17)                            any restrictions or other provisions with respect to the
transfer or exchange of Securities of the series, which may amend, supplement,
modify or supersede those contained in this Article II;

 

(18)                            if
the Securities of the series are to be convertible into or exchangeable for
common units, other debt securities (including Securities), warrants, other
equity securities or any other securities or property of the Partnership, the
Guarantor, any Subsidiary Guarantor or any other Person, at the option of the
Partnership or the Holder 

 

10

 

or
upon the occurrence of any condition or event, the terms and conditions for
such conversion or exchange;

 

(19)                            whether the Securities of the series are to be entitled to
the benefit of Section 4.03(b) (and accordingly constitute Rule 144A
Securities); and

 

(20)                            any other terms of the series (which terms shall not be
prohibited by the provisions of this Indenture).

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise be
provided in or pursuant to the Board Resolution referred to above and (subject
to Section 2.03) set forth, or determined in the manner provided, in the
Officers’ Certificate or Partnership Order referred to above or in any such
indenture supplemental hereto.

 

If any of the terms of the series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action, together with such Board Resolution, shall be set forth in an
Officers’ Certificate or certified by the Secretary or an Assistant Secretary
of the General Partner and delivered to the Trustee at or prior to the delivery
of the Officers’ Certificate or Partnership Order setting forth the terms of
the series.

 

SECTION 2.02                                                                    Denominations.

 

The Securities of each series shall be issuable in
such denominations as shall be specified as contemplated by Section 2.01.  In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series
denominated in Dollars shall be issuable in denominations of $1,000 and any
integral multiples thereof.

 

SECTION 2.03                                                                    Forms
Generally.

 

The Securities of each series shall be in fully
registered form and in substantially such form or forms (including temporary or
permanent global form) established by or pursuant to a Board Resolution or in
one or more indentures supplemental hereto. 
The Securities may have notations, legends or endorsements required by
law, securities exchange rule, the Partnership’s certificate of limited
partnership, agreement of limited partnership or other similar governing
documents, agreements to which the Partnership is subject, if any, or usage
(provided that any such notation, legend or endorsement is in a form acceptable
to the Partnership).  A copy of the Board
Resolution establishing the form or forms of Securities of any series shall be
delivered to the Trustee at or prior to the delivery of the Partnership Order
contemplated by Section 2.04 for the authentication and delivery of such
Securities.

 

The definitive Securities of each series shall be
printed, lithographed or engraved on steel engraved borders or may be produced
in any other manner, all as determined by the Officers executing such
Securities, as evidenced by their execution thereof.

 

11

 

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

 

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

 

	
   

  	
  [                                        ], as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory”.

  

 

SECTION 2.04                                                                    Execution, Authentication, Delivery and Dating.

 

Two Officers of the General Partner shall sign the
Securities on behalf of the Partnership and, with respect to any related
Guarantees, an Officer of K-Sea General Partner GP LLC and an Officer of each Subsidiary
Guarantor, as the case may be, shall sign the notation of Guarantee on behalf
of the Guarantor or such Subsidiary Guarantor, as the case may be, in each case
by manual or facsimile signature.

 

If an Officer of the General Partner whose signature
is on a Security no longer holds that office at the time the Security is
authenticated, the Security shall be valid nevertheless.

 

A Security shall not be entitled to any benefit under
this Indenture or the related Guarantees or be valid or obligatory for any
purpose until authenticated by the manual signature of an authorized signatory
of the Trustee, which signature shall be conclusive evidence that the Security
has been authenticated under this Indenture. 
Notwithstanding the foregoing, if any Security has been authenticated
and delivered hereunder but never issued and sold by the Partnership, and the
Partnership delivers such Security to the Trustee for cancellation as provided
in Section 2.13, together with a written statement (which need not comply
with Section 11.05 and need not be accompanied by an Opinion of Counsel)
stating that such Security has never been issued and sold by the Partnership,
for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture or the related Guarantees.

 

At any time and from time to time after the execution
and delivery of this Indenture, the Partnership may deliver Securities of any
series executed by the Partnership to the Trustee for authentication, and the
Trustee shall authenticate and deliver such Securities for original issue upon
a Partnership Order for the authentication and delivery of such Securities or
pursuant to such procedures acceptable to the Trustee as may be specified from
time to time by Partnership Order.  Such
order shall specify the amount of the Securities to be authenticated, the date
on which the original issue of Securities is to be authenticated, the name or
names of the initial Holder or Holders and any other terms of the Securities of
such series not otherwise determined.  If
provided for in such procedures, such Partnership Order may authorize (1) authentication
and delivery of Securities of such series for original issue from time to time,
with certain terms (including, without limitation, the Maturity dates or dates,
original issue date or dates and interest rate or rates) that differ from Security
to Security and (2) may authorize authentication and delivery pursuant to
oral or electronic instructions from the Partnership or its duly authorized
agent, which instructions shall be promptly confirmed in writing.

 

12

 

If the form or terms of the Securities of the series
have been established in or pursuant to one or more Board Resolutions as
permitted by Section 2.01, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive (in addition to the
Partnership Order referred to above and the other documents required by Section 11.04),
and (subject to Section 7.01) shall be fully protected in relying upon:

 

(a)                                  an Officers’ Certificate of the General Partner setting
forth the Board Resolution and, if applicable, an appropriate record of any
action taken pursuant thereto, as contemplated by the last paragraph of Section 2.01;
and

 

(b)                                 an Opinion of Counsel to the effect that:

 

(i)                                     the form of such Securities has been established in
conformity with the provisions of this Indenture;

 

(ii)                                  the terms of such Securities have been established in
conformity with the provisions of this Indenture; and

 

(iii)                               that such Securities and
the related Guarantees, when authenticated and delivered by the Trustee and
issued by the Partnership in the manner and subject to any conditions specified
in such Opinion of Counsel, will constitute valid and binding obligations of
the Partnership, the Guarantor and the Subsidiary Guarantors, respectively,
enforceable against the Partnership, the Guarantor and the Subsidiary
Guarantors, respectively, in accordance with their respective terms, except as
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws in
effect from time to time affecting the rights of creditors generally, and the
application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

 

If all the Securities of any series are not to be
issued at one time, it shall not be necessary to deliver an Officers’
Certificate and Opinion of Counsel at the time of issuance of each such
Security, but such Officers’ Certificate and Opinion of Counsel shall be
delivered at or before the time of issuance of the first Security of the series
to be issued.

 

The Trustee shall not be required to authenticate such
Securities if the issuance of such Securities pursuant to this Indenture would
affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.

 

The Trustee may appoint an authenticating agent
acceptable to the Partnership to authenticate Securities.  Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as an Agent to deal with the Partnership, the Guarantor, any
Subsidiary Guarantor or an Affiliate of the Partnership, the Guarantor or any Subsidiary
Guarantor.

 

13

 

Each Security shall be dated the date of its
authentication.

 

SECTION 2.05                                                                    Registrar and Paying Agent.

 

The Partnership shall maintain an office or agency for
each series of Securities where Securities of such series may be presented for
registration of transfer or exchange (“Registrar”) and an office or agency
where Securities of such series may be presented for payment (“Paying Agent”).  The Registrar shall keep a register of the Securities
of such series and of their transfer and exchange.  The Partnership may appoint one or more
co-registrars and one or more additional paying agents.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying agent.

 

The Partnership shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this
Indenture.  The agreement shall implement
the provisions of this Indenture that relate to such Agent.  The Partnership shall notify the Trustee of
the name and address of any Agent not a party to this Indenture.  The Partnership may change any Paying Agent
or Registrar without notice to any Holder. 
If the Partnership fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such.  The Partnership, the Guarantor, any
Subsidiary Guarantor or any other Subsidiary may act as Paying Agent or
Registrar.

 

The Partnership initially appoints the Trustee as
Registrar and Paying Agent.

 

SECTION 2.06                                                                    Paying
Agent to Hold Money in Trust.

 

The Partnership shall require each Paying Agent other
than the Trustee to agree in writing that the Paying Agent will hold in trust
for the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal of, premium, if any, or interest on or any Additional
Amounts with respect to Securities and will notify the Trustee of any default
by the Partnership in making any such payment. 
While any such default continues, the Trustee may require a Paying Agent
to pay all money held by it to the Trustee and to account for any funds
disbursed.  The Partnership at any time
may require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed.  Upon
payment over to the Trustee and upon accounting for any funds disbursed, the
Paying Agent (if other than the Partnership, the Guarantor, or another
Subsidiary of the Partnership) shall have no further liability for the
money.  If the Partnership, the Guarantor,
a Subsidiary Guarantor or another Subsidiary of the Partnership acts as Paying
Agent, it shall segregate and hold in a separate trust fund for the benefit of
the Holders all money held by it as Paying Agent.  Each Paying Agent shall otherwise comply with
TIA § 317(b).

 

SECTION 2.07                                                                    Holder
Lists.

 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar with
respect to a series of Securities, the Partnership shall furnish to the Trustee
at least five Business Days before each Interest Payment Date with respect to
such series of Securities, and at such other times as the Trustee may request
in writing, a list in such form and as of such date as the Trustee may
reasonably require of the 

 

14

 

names
and addresses of Holders of such series, and the Partnership shall otherwise
comply with TIA § 312(a).

 

SECTION 2.08                                                                    Transfer  and Exchange.

 

Except as set forth in Section 2.17 or as may be
provided pursuant to Section 2.01:

 

When Securities of any series are presented to the
Registrar with the request to register the transfer of such Securities or to
exchange such Securities for an equal principal amount of Securities of the
same series of like tenor and of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its
requirements and the requirements of this Indenture for such transactions are
met; provided, however, that the Securities
presented or surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instruction of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder thereof or by his
attorney, duly authorized in writing, on which instruction the Registrar can
rely.

 

To permit registrations of transfers and exchanges,
the Partnership shall execute and the Trustee shall authenticate Securities at
the Registrar’s written request and submission of the Securities or Global
Securities.  No service charge shall be
made to a Holder for any registration of transfer or exchange (except as
otherwise expressly permitted herein), but the Partnership may require payment
of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than such transfer tax or similar
governmental charge payable upon exchanges pursuant to Section 2.12, 3.07
or 9.05). The Trustee shall authenticate Securities in accordance with the
provisions of Section 2.04. 
Notwithstanding any other provisions of this Indenture to the contrary,
the Partnership shall not be required to register the transfer or exchange of (a) any
Security selected for redemption in whole or in part pursuant to Article III,
except the unredeemed portion of any Security being redeemed in part, or (b) any
Security during the period beginning 15 Business Days prior to the mailing of
notice of any offer to repurchase Securities of the series required pursuant to
the terms thereof or of redemption of Securities of a series to be redeemed and
ending at the close of business on the day of mailing.

 

SECTION 2.09                                                                    Replacement
Securities.

 

If any mutilated Security is surrendered to the
Trustee, or if the Holder of a Security claims that the Security has been
destroyed, lost or stolen and the Partnership and the Trustee receive evidence
to their satisfaction of the destruction, loss or theft of such Security, the
Partnership shall issue and the Trustee shall authenticate a replacement
Security of the same series if the Trustee’s requirements are met.  If any such mutilated, destroyed, lost or
stolen Security has become or is about to become due and payable, the
Partnership in its discretion may, instead of issuing a new Security, pay such
Security.  If required by the Trustee,
the Guarantor, any Subsidiary Guarantor or the Partnership, such Holder must
furnish an indemnity bond that is sufficient in the judgment of the Trustee and
the Partnership to protect the Partnership, the Guarantor, each Subsidiary
Guarantor, the Trustee, any Agent or any 

 

15

 

authenticating
agent from any loss that any of them may suffer if a Security is replaced.  The Partnership and the Trustee may charge a
Holder for their expenses in replacing a Security.

 

Every replacement Security is an additional obligation
of the Partnership.

 

SECTION 2.10                                                                    Outstanding
Securities.

 

The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest in a Global
Security effected by the Trustee hereunder and those
described in this Section 2.10 as not outstanding.

 

If a Security is replaced pursuant to Section 2.09,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Security is held by a bona fide purchaser.

 

If the principal amount of any Security is considered
paid under Section 4.01, it ceases to be outstanding and interest on it
ceases to accrue.

 

A Security does not cease to be outstanding because
the Partnership, the Guarantor, a Subsidiary Guarantor or an Affiliate of the
Partnership, the Guarantor or a Subsidiary Guarantor holds the Security.

 

SECTION 2.11                                                                    Original
Issue Discount and Treasury Securities.

 

In determining whether the Holders of the required
principal amount of Securities have concurred in any direction, amendment,
supplement, waiver or consent, (a) the principal amount of an Original
Issue Discount Security shall be the principal amount thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 6.02 and (b) Securities owned by
the Partnership, the Guarantor, a Subsidiary Guarantor or any other obligor
upon the Securities or any Affiliate of the Partnership, of the Guarantor, of a
Subsidiary Guarantor or of such other obligor shall be disregarded, except
that, for the purpose of determining whether the Trustee shall be protected in
relying upon any such direction, amendment, supplement, waiver or consent, only
Securities that a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded.

 

SECTION 2.12                                                                    Temporary
Securities.

 

Until definitive Securities of any series are ready
for delivery, the Partnership may prepare and execute and the Trustee shall
authenticate temporary Securities. 
Temporary Securities shall be substantially in the form of definitive
Securities, but may have variations that the Partnership considers appropriate
for temporary Securities.  Without
unreasonable delay, the Partnership shall prepare and execute and the Trustee
shall authenticate definitive Securities in exchange for temporary
Securities.  Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.

 

16

 

SECTION 2.13                                                                    Cancellation.

 

The Partnership, the Guarantor or any Subsidiary
Guarantor at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange, payment or redemption or for credit
against any sinking fund payment.  The
Trustee shall cancel all Securities surrendered for registration of transfer,
exchange, payment, redemption, replacement or cancellation or for credit
against any sinking fund.  Unless the
Partnership shall direct in writing that canceled Securities be returned to it,
after written notice to the Partnership all canceled Securities held by the
Trustee shall be disposed of in accordance with the usual disposal procedures
of the Trustee, and the Trustee shall maintain a record of their disposal.  The Partnership may not issue new Securities
to replace Securities that have been paid or that have been delivered to the
Trustee for cancellation.

 

SECTION 2.14                                                                    Payments;
Defaulted Interest.

 

Unless otherwise provided as contemplated by Section 2.01,
interest (except defaulted interest) on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Persons who are registered Holders of that Security at the close of
business on the record date next preceding such Interest Payment Date, even if
such Securities are canceled after such record date and on or before such
Interest Payment Date.  The Holder must
surrender a Security to a Paying Agent to collect principal payments.  Unless otherwise provided with respect to the
Securities of any series, the Partnership will pay the principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities in Dollars.  Such amounts
shall be payable at the offices of the Trustee or any Paying Agent, provided that at the option of the Partnership, the
Partnership may pay such amounts (1) by wire transfer with respect to
Global Securities or (2) by check payable in such money mailed to a Holder’s
registered address with respect to any Securities.

 

If the Partnership defaults in a payment of interest
on the Securities of any series, the Partnership shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest on the
defaulted interest, in each case at the rate provided in the Securities of such
series and in Section 4.01.  The
Partnership may pay the defaulted interest to the Persons who are Holders on a
subsequent special record date.  At least
15 days before any special record date selected by the Partnership, the
Partnership (or the Trustee, in the name of and at the expense of the
Partnership upon 20 days’ prior written notice from the Partnership setting
forth such special record date and the interest amount to be paid) shall mail
to Holders a notice that states the special record date, the related payment
date and the amount of such interest to be paid.

 

SECTION 2.15                                                                    Persons
Deemed Owners.

 

The Partnership, the Guarantor, the Subsidiary
Guarantors, the Trustee, any Agent and any authenticating agent may treat the
Person in whose name any Security is registered as the owner of such Security
for the purpose of receiving payments of principal of, premium (if any) or
interest on or any Additional Amounts with respect to such Security and for all
other purposes.  None of the Partnership,
the Guarantor, any Subsidiary Guarantor, the Trustee,
any Agent or any authenticating agent shall be affected by any notice to the
contrary.

 

17

 

SECTION 2.16                                                                    Computation
of Interest.

 

Except as otherwise specified as contemplated by Section 2.01
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a year comprising twelve 30-day months.

 

SECTION 2.17                                                                    Global
Securities; Book-Entry Provisions.

 

If Securities of a series are issuable in global form
as a Global Security, as contemplated by Section 2.01, then, notwithstanding
clause (11) of Section 2.01 and the provisions of Section 2.02, any
such Global Security shall represent such of the outstanding Securities of such
series as shall be specified therein and may provide that it shall represent
the aggregate amount of outstanding Securities from time to time endorsed
thereon and that the aggregate amount of outstanding Securities represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, transfers or redemptions. 
Any endorsement of a Global Security to reflect the amount, or any
increase or decrease in the amount, of outstanding Securities represented
thereby shall be made by the Trustee (i) in such manner and upon
instructions given by such Person or Persons as shall be specified in such
Security or in a Partnership Order to be delivered to the Trustee pursuant to Section 2.04
or (ii) otherwise in accordance with written instructions or such other
written form of instructions as is customary for the Depositary for such
Security, from such Depositary or its nominee on behalf of any Person having a
beneficial interest in such Global Security. 
Subject to the provisions of Section 2.04 and, if applicable, Section 2.12,
the Trustee shall deliver and redeliver any Security in permanent global form
in the manner and upon instructions given by the Person or Persons specified in
such Security or in the applicable Partnership Order.  With respect to the Securities of any series
that are represented by a Global Security, the Partnership, the Guarantor and
the Subsidiary Guarantors authorize the execution and delivery by the Trustee
of a letter of representations or other similar agreement or instrument in the
form customarily provided for by the Depositary appointed with respect to such
Global Security.  Any Global Security may
be deposited with the Depositary or its nominee, or may remain in the custody
of the Trustee or the Security Custodian therefor pursuant to a FAST Balance
Certificate Agreement or similar agreement between the Trustee and the
Depositary.  If a Partnership Order has
been, or simultaneously is, delivered, any instructions by the Partnership with
respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 11.05 and need not be
accompanied by an Opinion of Counsel.

 

Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary, or the Trustee or the Security
Custodian as its custodian, or under such Global Security, and the Depositary
may be treated by the Partnership, the Guarantor, any Subsidiary Guarantor, the
Trustee or the Security Custodian and any agent of the Partnership, the
Guarantor, any Subsidiary Guarantor, the Trustee or the Security Custodian as
the absolute owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, (i) the
registered holder of a Global Security of a series may grant proxies and
otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action that a Holder of
Securities of such series is entitled to take under this Indenture or the
Securities of such series and (ii) nothing herein shall prevent the
Partnership, the Guarantor, any 

 

18

 

Subsidiary Guarantor, the Trustee or the Security
Custodian, or any agent of the Partnership, the Guarantor, any Subsidiary
Guarantor, the Trustee or the Security Custodian, from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or shall impair, as between the Depositary and its Agent Members, the operation
of customary practices governing the exercise of the rights of a beneficial
owner of any Security.

 

Notwithstanding Section 2.08,
and except as otherwise provided pursuant to Section 2.01, transfers of a
Global Security shall be limited to transfers of such Global Security in whole,
but not in part, to the Depositary, its successors or their respective
nominees.  Interests of beneficial owners
in a Global Security may be transferred in accordance with the rules and
procedures of the Depositary.  Securities
shall be transferred to all beneficial owners in exchange for their beneficial
interests in a Global Security if, and only if, either (1) the Depositary
notifies the Partnership that it is unwilling or unable to continue as
Depositary for the Global Security and a successor Depositary is not appointed
by the Partnership within 90 days of such notice, (2) an Event of Default
has occurred with respect to such series and is continuing and the Registrar
has received a request from the Depositary to issue Securities in lieu of all
or a portion of the Global Security (in which case the Partnership shall
deliver Securities within 30 days of such request) or (3) the Partnership in
its sole discretion determines not to have the Securities represented by a
Global Security.

 

In connection with any transfer of a portion of the
beneficial interests in a Global Security to beneficial owners pursuant to this
Section 2.17, the Registrar shall reflect on its books and records the
date and a decrease in the principal amount of the Global Security in an amount
equal to the principal amount of the beneficial interests in the Global
Security to be transferred, and the Partnership shall execute, and the Trustee
upon receipt of a Partnership Order for the authentication and delivery of
Securities shall authenticate and deliver, one or more Securities of the same
series of like tenor and amount.

 

In connection with the transfer of all of the
beneficial interests in a Global Security to beneficial owners pursuant to this
Section 2.17, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Partnership shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the
Depositary in exchange for its beneficial interests in the Global Security, an
equal aggregate principal amount of Securities of authorized denominations.

 

None of the Partnership, the Guarantor, any Subsidiary
Guarantor or the Trustee will have any responsibility or liability for any
aspect of the records relating to, or payments made on account of, Securities
by the Depositary, or for maintaining, supervising or reviewing any records of
the Depositary relating to such Securities. 
None of the Partnership, the Guarantor, any Subsidiary Guarantor or the
Trustee shall be liable for any delay by the Holder of the Global Security or
the Depositary in identifying the beneficial owners, and each such Person may
conclusively rely on, and shall be protected in relying on, instructions from
such Holder of the Global Security or the Depositary for all purposes
(including with respect to the registration and delivery, and the respective
principal amounts, of the Securities to be issued).

 

The provisions of the last sentence of the third
paragraph of Section 2.04 shall apply to any Global Security if such
Global Security was never issued and sold by the 

 

19

 

Partnership and the Partnership, the Guarantor or a
Subsidiary Guarantor delivers to the Trustee the Global Security together with
written instructions (which need not comply with Section 11.05 and need
not be accompanied by an Opinion of Counsel) with regard to the cancellation or
reduction in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of the third
paragraph of Section 2.04.

 

Notwithstanding the provisions of Sections 2.03
and 2.14, unless otherwise specified as contemplated by Section 2.01,
payment of principal of, premium (if any) and interest on and any Additional
Amounts with respect to any Global Security shall be made to the Depositary.

 

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

 

Notwithstanding anything herein to the contrary,
delivery or surrender of a Security shall not be required in the case of Global
Securities in order to obtain the rights or benefits provided hereunder upon
the delivery or surrender of a Security.

 

ARTICLE III

REDEMPTION

 

SECTION 3.01                                                                    Applicability of Article.

 

Securities of any series that are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 2.01 for
Securities of any series) in accordance with this Article III.

 

SECTION 3.02                                                                    Notice to the Trustee.

 

If the Partnership elects to redeem Securities of any
series pursuant to this Indenture, it shall notify the Trustee of the
Redemption Date and the principal amount of Securities of such series to be
redeemed.  The Partnership shall so
notify the Trustee at least 45 days before the Redemption Date (unless a
shorter notice shall be satisfactory to the Trustee) by delivering to the
Trustee an Officers’ Certificate stating that such redemption will comply with
the provisions of this Indenture and of the Securities of such series.  Any such notice may be canceled at any time
prior to the mailing of such notice of such redemption to any Holder and shall
thereupon be void and of no effect.

 

SECTION 3.03                                                                    Selection of Securities To Be Redeemed.

 

If less than all of the Securities of any series are
to be redeemed (unless all of the Securities of such series of a specified
tenor are to be redeemed), the particular Securities to be 

 

20

 

redeemed shall be selected not more than 60 days prior
to the Redemption Date by the Trustee from the outstanding Securities of such
series (and tenor) not previously called for redemption, either pro rata, by
lot or by such other method as the Trustee shall deem appropriate in accordance
with industry standards at the time of such redemption and that may provide for
the selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series or of the
principal amount of Global Securities of such series; provided
that, if at the time of redemption such Securities are registered as a Global
Security, the Depositary shall determine, in accordance with its procedures,
the principal amount of such Securities held by each beneficial owner of
Securities to be redeemed.

 

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

 

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

 

SECTION 3.04                                                                    Notice of Redemption.

 

Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date, to each Holder of Securities to be redeemed, at the
address of such Holder appearing in the register of Securities maintained by
the Registrar.

 

All notices of redemption shall identify the
Securities to be redeemed and shall state:

 

(1)                                  the Redemption Date;

 

(2)                                  the Redemption Price (or the method of calculating or
determining the Redemption Price);

 

(3)                                  that,
unless the Partnership, the Guarantor and the Subsidiary Guarantors default in making
the redemption payment, interest on Securities called for redemption ceases to
accrue on and after the Redemption Date, and the only remaining right of the
Holders of such Securities is to receive payment of the Redemption Price upon
surrender to the Paying Agent of the Securities redeemed;

 

(4)                                  if
any Security is to be redeemed in part, the portion of the principal amount
thereof to be redeemed and that on and after the Redemption Date, upon
surrender for cancellation of such Security to the Paying Agent, a new Security
or Securities in the aggregate principal amount equal to the unredeemed portion
thereof will be issued without charge to the Holder;

 

21

 

(5)                                  that Securities called for redemption must be surrendered to
the Paying Agent to collect the Redemption Price and the name and address of
the Paying Agent;

 

(6)                                  that the redemption is for a sinking or analogous fund, if
such is the case; and

 

(7)                                  the CUSIP number, if any, relating to such Securities.

 

Notice of redemption of Securities to be redeemed at
the election of the Partnership shall be given by the Partnership or, at the
Partnership’s written request, by the Trustee in the name and at the expense of
the Partnership.

 

SECTION 3.05                                                                    Effect of Notice of Redemption.

 

Once notice of redemption is mailed, Securities called
for redemption become due and payable on the Redemption Date and at the
Redemption Price.  Upon surrender to the
Paying Agent, such Securities called for redemption shall be paid at the
Redemption Price, but interest installments whose maturity is on or prior to
such Redemption Date will be payable on the relevant Interest Payment Dates to
the Holders of record at the close of business on the relevant record dates
specified pursuant to Section 2.01.

 

SECTION 3.06                                                                    Deposit of Redemption Price.

 

On or prior to 11:00 a.m., New York City time, on
any Redemption Date, the Partnership, the Guarantor or a Subsidiary Guarantor shall
deposit with the Trustee or the Paying Agent (or, if the Partnership, the
Guarantor or such Subsidiary Guarantor is acting as the Paying Agent, segregate
and hold in trust as provided in Section 2.06) an amount of money in same
day funds sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on and any
Additional Amounts with respect to, the Securities or portions thereof which
are to be redeemed on that date, other than Securities or portions thereof
called for redemption on that date which have been delivered by the Partnership,
the Guarantor or a Subsidiary Guarantor to the Trustee for cancellation.

 

If the Partnership, the Guarantor or a Subsidiary
Guarantor complies with the preceding paragraph, then, unless the Partnership, the
Guarantor and the Subsidiary Guarantors default in the payment of such
Redemption Price, interest on the Securities to be redeemed will cease to
accrue on and after the applicable Redemption Date, whether or not such
Securities are presented for payment, and the Holders of such Securities shall
have no further rights with respect to such Securities except for the right to
receive the Redemption Price upon surrender of such Securities.  If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal, premium,
if any, any Additional Amounts, and, to the extent lawful, accrued interest
thereon shall, until paid, bear interest from the Redemption Date at the rate
specified pursuant to Section 2.01 or provided in the Securities or, in
the case of Original Issue Discount Securities, such Securities’ yield to
maturity.

 

22

 

SECTION 3.07                                                                    Securities
Redeemed in Part.

 

Upon surrender to the Paying Agent of a Security to be
redeemed in part, the Partnership shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge
a new Security or Securities, of the same series and of any authorized
denomination as requested by such Holder in aggregate principal amount equal
to, and in exchange for, the unredeemed portion of the principal of the
Security so surrendered that is not redeemed.

 

SECTION 3.08                                                                    Purchase of Securities.

 

Unless otherwise specified as contemplated by Section 2.01,
the Partnership, the Guarantor, any Subsidiary Guarantor and any Affiliate of
the Partnership, the Guarantor or any Subsidiary Guarantor may at any time
purchase or otherwise acquire Securities in the open market or by private
agreement.  Any such acquisition shall
not operate as or be deemed for any purpose to be a redemption of the
indebtedness represented by such Securities. 
Any Securities purchased or acquired by the Partnership, the Guarantor or
a Subsidiary Guarantor may be delivered to the Trustee and, upon such delivery,
the indebtedness represented thereby shall be deemed to be satisfied.  Section 2.13 shall apply to all
Securities so delivered.

 

SECTION 3.09                                                                    Mandatory
and Optional Sinking Funds.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as
a “mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment.” 
Unless otherwise provided by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.10.  Each sinking fund
payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series and by this Article III.

 

SECTION 3.10                                                                    Satisfaction of Sinking Fund Payments with Securities.

 

The Partnership, the Guarantor or a Subsidiary
Guarantor may deliver outstanding Securities of a series (other than any
previously called for redemption) and may apply as a credit Securities of a
series that have been redeemed either at the election of the Partnership
pursuant to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in
each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the
terms of such series of Securities; provided that
such Securities have not been previously so credited.  Such Securities shall be received and
credited for such purpose by the Trustee at the Redemption Price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

 

SECTION 3.11                                                                    Redemption of Securities for
Sinking Fund.

 

Not less than 45 days prior (unless a shorter period
shall be satisfactory to the Trustee) to each sinking fund payment date for any
series of Securities, the Partnership will

 

23

 

deliver to the Trustee an Officers’ Certificate of the
General Partner specifying the amount of the next ensuing sinking fund payment
for that series pursuant to the terms of that series, the portion thereof, if
any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivery of or by crediting Securities of that
series pursuant to Section 3.10 and will also deliver or cause to be
delivered to the Trustee any Securities to be so delivered.  Failure of the Partnership to timely deliver
or cause to be delivered such Officers’ Certificate and Securities specified in
this paragraph, if any, shall not constitute a default but shall constitute the
election of the Partnership (i) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of
such series in respect thereof and (ii) that the Partnership will make no
optional sinking fund payment with respect to such series as provided in this Section 3.11.

 

If the sinking fund payment or payments (mandatory or
optional or both) to be made in cash on the next succeeding sinking fund
payment date plus any unused balance of any preceding sinking fund payments
made in cash shall exceed $100,000 or a lesser sum if the Partnership shall so
request with respect to the Securities of any particular series, such cash
shall be applied on the next succeeding sinking fund payment date to the redemption
of Securities of such series at the sinking fund redemption price together with
accrued interest to the date fixed for redemption.  If such amount shall be $100,000 or less and
the Partnership makes no such request then it shall be carried over until a sum
in excess of $100,000 is available.  Not
less than 30 days before each such sinking fund payment date, the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 3.03 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Partnership in the
manner provided in Section 3.04. 
Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 3.05, 3.06
and 3.07.

 

ARTICLE IV

COVENANTS

 

SECTION 4.01                                                                    Payment
of Securities.

 

The Partnership shall pay the principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities of each series on the dates and in the manner provided in the
Securities of such series and in this Indenture.  Principal, premium, interest and any
Additional Amounts shall be considered paid on the date due if the Paying Agent
(other than the Partnership, the Guarantor, a Subsidiary Guarantor or a
Subsidiary) holds by 11:00 a.m., New York City time, on that date money
deposited by the Partnership, the Guarantor or a Subsidiary Guarantor designated
for and sufficient to pay all principal, premium, interest and any Additional
Amounts then due.

 

The Partnership shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium (if any), at a rate equal to the then applicable interest
rate on the Securities to the extent lawful; and it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and any Additional Amount (without regard
to any applicable grace period) at the same rate to the extent lawful.

 

24

 

SECTION 4.02                                                                    Maintenance of Office or Agency.

 

The Partnership will maintain in each Place of Payment
for any series of Securities an office or agency (which may be an office of the
Trustee, the Registrar or the Paying Agent) where Securities of that series may
be presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or upon
the Partnership, the Guarantor or a Subsidiary Guarantor in respect of the
Securities of that series and this Indenture may be served. Unless otherwise
designated by the Partnership by written notice to the Trustee, the Guarantor
and the Subsidiary Guarantors, such office or agency shall be the office of the
Trustee in The City of New York, which on the date hereof is located at                                 .  The Partnership will give prompt written
notice to the Trustee, the Guarantor and the Subsidiary Guarantors of the
location, and any change in the location, of such office or agency.  If at any time the Partnership shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee, the Guarantor and the Subsidiary Guarantors with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee.

 

The Partnership may also from time to time designate
one or more other offices or agencies where the Securities of one or more
series may be presented or surrendered for any or 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
each Place of Payment for Securities of any series for such purposes.  The Partnership will give prompt written
notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

 

SECTION 4.03                                                                    SEC
Reports; Financial Statements.

 

(a)           If
the Partnership is subject to Section 13 or 15(d) of the Exchange
Act, the Partnership shall file with the Trustee, within 15 days after it files
the same with the SEC, copies of the annual reports and the information,
documents and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) that the Partnership is
required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act.  If this Indenture is
qualified under the TIA, but not otherwise, the Partnership shall also comply
with the provisions of TIA § 314(a).

 

(b)           If
the Partnership is not subject to the requirements of Section 13 or 15(d) of
the Exchange Act, the Partnership shall furnish to all Holders of Rule 144A
Securities and prospective purchasers of Rule 144A Securities designated
by the Holders of Rule 144A Securities, promptly upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) promulgated
under the Securities Act of 1933, as amended.

 

(c)           The
Partnership intends to file the reports, information and documents referred to
in Section 4.03(a) hereof with the SEC in electronic form pursuant to
Regulation S-T promulgated by the SEC using the SEC’s Electronic Data
Gathering, Analysis and Retrieval (“EDGAR”) system.  The Partnership shall notify the Trustee in
the manner prescribed herein of each such filing.  The Trustee is hereby authorized and directed
to access the EDGAR system for purposes of retrieving the reports so
filed.  Compliance with the foregoing
shall constitute

 

25

 

delivery by the
Partnership of such reports to the Trustee in compliance with the provisions of
TIA § 314(a).  The Trustee shall
have no duty to search for or obtain any electronic or other filings that the
Partnership makes with the SEC, regardless of whether such filings are
periodic, supplemental or otherwise. 
Delivery of the reports, information and documents to the Trustee
pursuant to this Section 4.03 shall be solely for the purposes of
compliance with this Section 4.03 and with TIA § 314(a).  The Trustee’s receipt of such reports,
information and documents shall not constitute notice to it of the content
thereof or of any matter determinable from the content thereof, including the
Partnership’s and any Subsidiary Guarantor’s compliance with any of their
covenants hereunder, as to which the Trustee is entitled to rely upon Officers’
Certificates.

 

SECTION 4.04                                                                    Compliance
Certificate.

 

(a)           Each
of the Partnership, the Guarantor and the Subsidiary Guarantors shall deliver
to the Trustee, within 120 days after the end of each fiscal year of the
Partnership, the Guarantor and the Subsidiary Guarantors, a statement signed by
an Officer of the General Partner, the Guarantor or such Subsidiary Guarantor,
as the case may be, which need not constitute an Officers’ Certificate,
complying with TIA § 314(a)(4) and stating that in the course of
performance by the signing Officer of his duties as such Officer of the General
Partner, the Guarantor or such Subsidiary Guarantor, as the case may be, he
would normally obtain knowledge of the keeping, observing, performing and
fulfilling by the Partnership, the Guarantor or such Subsidiary Guarantor, as
the case may be, of its obligations under this Indenture, and further stating
that to the best of his knowledge the Partnership, the Guarantor or such
Subsidiary Guarantor, as the case may be, has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer may
have knowledge and what action the Partnership, the Guarantor or such
Subsidiary Guarantor, as the case may be, is taking or proposes to take with
respect thereto).

 

(b)           The
Partnership, the Guarantor or any Subsidiary Guarantor shall, so long as
Securities of any series are outstanding, deliver to the Trustee, as soon as
practicable, but in no event more than five Business Days, after any Officer of
the General Partner, the Guarantor or such Subsidiary Guarantor, as the case
may be, becoming aware of any Default or Event of Default under this Indenture,
an Officers’ Certificate specifying such Default or Event of Default and what
action the Partnership, the Guarantor or such Subsidiary Guarantor, as the case
may be, is taking or proposes to take with respect thereto.

 

SECTION 4.05                                                                    Existence.

 

Subject to Article V, the Partnership, the
Guarantor and each of the Subsidiary Guarantors that is a Significant
Subsidiary shall do or cause to be done all things necessary to preserve and
keep in full force and effect its existence. 
This Section 4.05 shall not prohibit or restrict the Partnership,
the Guarantor or any Subsidiary Guarantor from converting into a different form
of legal entity.

 

26

 

SECTION 4.06                                                                    Waiver
of Stay, Extension or Usury Laws.

 

Each of the Partnership, the Guarantor and the
Subsidiary Guarantors covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive it from paying all or any
portion of the principal of or interest on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Indenture; and (to the extent
that it may lawfully do so) each of the Partnership, the Guarantor and the
Subsidiary Guarantors hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

SECTION 4.07                                                                    Additional
Amounts.

 

If the Securities of a series expressly provide for
the payment of Additional Amounts, the Partnership will pay to the Holder of
any Security of such series Additional Amounts as expressly provided
therein.  Whenever in this Indenture
there is mentioned, in any context, the payment of the principal of or any
premium or interest on, or in respect of, any Security of any series or the net
proceeds received from the sale or exchange of any Security of any series, such
mention shall be deemed to include mention of the payment of Additional Amounts
provided for in this Section 4.07 to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section 4.07 and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

 

ARTICLE V

SUCCESSORS

 

SECTION 5.01                                                                    Limitations
on Mergers and Consolidations.

 

Neither the Partnership, the Guarantor nor any
Subsidiary Guarantor shall, in any transaction or series of transactions,
consolidate with or merge into any Person, or sell, lease, convey, transfer or
otherwise dispose of all or substantially all of its assets to any Person
(other than a consolidation or merger of the Partnership and the Guarantor, the
Partnership and one or more Subsidiary Guarantors, the Guarantor and one or
more Subsidiary Guarantors or two or more Subsidiary Guarantors, or a sale,
lease, conveyance, transfer or other disposition of all or substantially all of
the assets of the Partnership to the Guarantor, the Guarantor to the
Partnership, the Partnership to a Subsidiary Guarantor, a Subsidiary Guarantor
to the Partnership, the Guarantor to a Subsidiary Guarantor, a Subsidiary
Guarantor to the Guarantor or of a Subsidiary Guarantor to another Subsidiary
Guarantor), unless:

 

(1)           either (a) the
Partnership, the Guarantor or such Subsidiary Guarantor, as the case may be,
shall be the continuing Person or (b) the Person (if other than the
Partnership, the Guarantor or such Subsidiary Guarantor) formed by such
consolidation

 

27

 

or into which the
Partnership, the Guarantor or such Subsidiary Guarantor is merged, or to which
such sale, lease, conveyance, transfer or other disposition shall be made
(collectively, the “Successor”), is organized and validly existing under the
laws of the United States of America, any political subdivision thereof or any
State thereof or the District of Columbia, and expressly assumes by
supplemental indenture, in the case of the Partnership, the due and punctual
payment of the principal of, premium (if any) and interest on and any
Additional Amounts with respect to all the Securities and the performance of
the Partnership’s covenants and obligations under this Indenture and the
Securities, or, in the case of the Guarantor or such Subsidiary Guarantor, the
performance of the Guarantee and the Guarantor’s or such Subsidiary Guarantor’s
covenants and obligations under this Indenture and the Securities;

 

(2)           immediately after
giving effect to such transaction or series of transactions, no Default or
Event of Default shall have occurred and be continuing or would result
therefrom; and

 

(3)           in the case of
clause (1)(b) above, the Successor delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that the transaction and
such supplemental indenture comply with this Indenture.

 

SECTION 5.02                                                                    Successor
Person Substituted.

 

Upon any consolidation or merger of the Partnership, the
Guarantor or a Subsidiary Guarantor, as the case may be, or any sale, lease,
conveyance, transfer or other disposition of all or substantially all of the
assets of the Partnership, the Guarantor or such Subsidiary Guarantor in
accordance with Section 5.01, the Successor formed by such consolidation
or into or with which the Partnership, the Guarantor or such Subsidiary Guarantor
is merged or to which such sale, lease, conveyance, transfer or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of the Partnership, the Guarantor or such Subsidiary
Guarantor, as the case may be, under this Indenture and the Securities with the
same effect as if such Successor had been named as the Partnership, the
Guarantor or such Subsidiary Guarantor, as the case may be, herein and the
predecessor Partnership, Guarantor or Subsidiary Guarantor, in the case of a
sale, conveyance, transfer or other disposition, shall be released from all
obligations under this Indenture, the Securities and, in the case of the
Guarantor and a Subsidiary Guarantor, its Guarantee.

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

SECTION 6.01                                                                    Events
of Default.

 

Unless either inapplicable to a particular series or
specifically deleted or modified in or pursuant to the supplemental indenture
or Board Resolution establishing such series of Securities or in the form of
Security for such series, an “Event of Default,” wherever used herein with
respect to Securities of any series, occurs if:

 

28

 

(1)           there is a default
in the payment of interest on or any Additional Amounts with respect to any
Security of that series when the same becomes due and payable and such default
continues for a period of 30 days;

 

(2)           there is a default
in the payment of the principal of or premium, if any, on any Securities of
that series as and when the same shall become due and payable, whether at
Stated Maturity, upon redemption, by declaration, upon required repurchase or
otherwise;

 

(3)           there is a default
in the payment of any sinking fund payment with respect to any Securities of
that series as and when the same shall become due and payable;

 

(4)           there is a failure
on the part of the Partnership or the Guarantor, or if any series of Securities
outstanding under this Indenture is entitled to the benefits of a Guarantee,
any of the Subsidiary Guarantors, duly to observe or perform any other of the
covenants or agreements on the part of the Partnership, the Guarantor, or if
applicable, any of the Subsidiary Guarantors, in the Securities of that series,
in any resolution of the Board of Directors authorizing the issuance of that
series of Securities, in this Indenture with respect to such series or in any
supplemental Indenture with respect to such series (other than a default in the
performance of a covenant which is specifically dealt with elsewhere in this Section 6.01),
continuing for a period of 60 days after the date on which written notice
specifying such failure and requiring the Partnership, the Guarantor, or if
applicable, the Subsidiary Guarantors, to remedy the same shall have been
given, by registered or certified mail, to the Partnership, the Guarantor, or
if applicable, the Subsidiary Guarantors, by the Trustee or to the Partnership,
the Guarantor, or if applicable, the Subsidiary Guarantors, and the Trustee by
the Holders of at least 25% in aggregate principal amount of the Securities of
that series at the time outstanding;

 

(5)           the Partnership or
the Guarantor, or if that series of Securities is entitled to the benefits of a
Guarantee by the Subsidiary Guarantors, any of such Subsidiary Guarantors that
is a Significant Subsidiary, pursuant to or within the meaning of any
Bankruptcy Law:

 

(A)          commences a voluntary
case,

 

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

 

(C)           consents to the
appointment of a Bankruptcy Custodian of it or for all or substantially all of
its property, or

 

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

 

29

 

(6)           a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that remains
unstayed and in effect for 60 days and that:

 

(A)          is for relief against
the Partnership, the Guarantor or any Subsidiary Guarantor that is a
Significant Subsidiary as debtor in an involuntary case,

 

(B)           appoints a
Bankruptcy Custodian of the Partnership, the Guarantor or any Subsidiary
Guarantor that is a Significant Subsidiary or a Bankruptcy Custodian for all or
substantially all of the property of the Partnership, the Guarantor or any
Subsidiary Guarantor that is a Significant Subsidiary, or

 

(C)           orders the
liquidation of the Partnership, the Guarantor or any Subsidiary Guarantor that
is a Significant Subsidiary;

 

(7)           the Guarantee of the
Guarantor or, that series of Securities is entitled to the benefits of a
Guarantee by the Subsidiary Guarantors, the Guarantee of any of such Subsidiary
Guarantors that is a Significant Subsidiary, ceases to be in full force and
effect with respect to Securities of that series (except as otherwise provided
in this Indenture) or is declared null and void in a judicial proceeding or the
Guarantor or any such Subsidiary Guarantor denies or disaffirms its obligations
under this Indenture or such Guarantee; or

 

(8)           any other Event of
Default provided with respect to Securities of that series occurs.

 

The term “Bankruptcy Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

The Trustee shall not be deemed to know or have notice
of any Default or Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in
fact such a Default or Event of Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the
Securities and this Indenture.

 

When a Default is cured, it ceases.

 

A Default under clause (4) or (8) of this Section 6.01
is not an Event of Default until the Trustee notifies the Partnership, the
Guarantor and the Subsidiary Guarantors, or the Holders of at least 25% in principal
amount of the then outstanding Securities of the series affected by such
Default (or, in the case of a Default under clause (4) of this Section 6.01,
if outstanding Securities of other series are affected by such Default, then at
least 25% in principal amount of the then outstanding Securities so affected)
notify the Partnership, the Guarantor, the Subsidiary Guarantors and the
Trustee, of the Default, and the Partnership, the Guarantor or the applicable
Subsidiary Guarantor, as the case may be, fails to cure the Default within 60
days after receipt of the notice.  The
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”

 

30

 

SECTION 6.02                                                                    Acceleration.

 

If an Event of Default with respect to any Securities
of any series at the time outstanding (other than an Event of Default specified
in clause (5) or (6) of Section 6.01) occurs and is continuing,
the Trustee by notice to the Partnership, the Guarantor and the Subsidiary
Guarantors, or the Holders of at least 25% in principal amount of the then
outstanding Securities of the series affected by such Event of Default (or, in
the case of an Event of Default described in clause (4) of Section 6.01,
if outstanding Securities of other series are affected by such Event of
Default, then at least 25% in principal amount of the then outstanding
Securities so affected) by notice to the Partnership, the Guarantor, the
Subsidiary Guarantors and the Trustee, may declare the principal of (or, if any
such Securities are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of that series) and all
accrued and unpaid interest on all then outstanding Securities of such series
or of all series, as the case may be, to be due and payable.  Upon any such declaration, the amounts due
and payable on the Securities shall be due and payable immediately.  If an Event of Default specified in clause (5) or
(6) of Section 6.01 hereof occurs, such amounts shall ipso facto become and be immediately due and payable without
any declaration, notice or other act on the part of the Trustee or any
Holder.  The Holders of a majority in
principal amount of the then outstanding Securities of the series affected by
such Event of Default or all series so affected, as the case may be, by written
notice to the Trustee may rescind an acceleration and its consequences (other
than nonpayment of principal of or premium or interest on or any Additional Amounts
with respect to the Securities) if the rescission would not conflict with any
judgment or decree and if all existing Events of Default with respect to
Securities of that series (or of all series, as the case may be) have been
cured or waived, except nonpayment of principal, premium, interest or any
Additional Amounts that has become due solely because of the acceleration.

 

SECTION 6.03                                                                    Other
Remedies.

 

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

 

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

 

SECTION 6.04                                                                    Waiver
of Defaults.

 

Subject to Sections 6.07 and 9.02, the Holders of a
majority in principal amount of the then outstanding Securities of any series
or of all series affected thereby (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect
to such series or all series so affected, as the case may be, and its
consequences (including waivers obtained in connection with a tender offer or
exchange offer for Securities of such series or all series so affected or a
solicitation of consents in respect of Securities of such series or all series
so affected, provided that in each case such
offer or solicitation is made to all

 

31

 

Holders of then outstanding Securities of such series
or all series so affected (but the terms of such offer or solicitation may vary
from series to series)), except (1) a continuing Default or Event of
Default in the payment of the principal of, or premium, if any, or interest on
or any Additional Amounts with respect to any Security or (2) a continued
Default in respect of a provision that under Section 9.02 cannot be
amended or supplemented without the consent of each Holder affected.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

SECTION 6.05                                                                    Control
by Majority.

 

With respect to Securities of any series, the Holders
of a majority in principal amount of the then outstanding Securities of such
series may direct in writing the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it relating to or arising under an Event of Default
described in clause (1), (2), (3) or (8) of Section 6.01,
and with respect to all Securities, the Holders of a majority in principal
amount of all the then outstanding Securities affected may direct in writing
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on it not
relating to or arising under such an Event of Default.  However, the Trustee may refuse to follow any
direction that conflicts with applicable law or this Indenture, that the
Trustee determines may be unduly prejudicial to the rights of other Holders, or
that may involve the Trustee in personal liability; provided,
however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion from Holders directing the Trustee against all losses and expenses
caused by taking or not taking such action.

 

SECTION 6.06                                                                    Limitations
on Suits.

 

Subject to Section 6.07 hereof, a Holder of a
Security of any series may pursue a remedy with respect to this Indenture or
the Securities of such series or the related Guarantees only if:

 

(1)           the
Holder gives to the Trustee written notice of a continuing Event of Default
with respect to such series;

 

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

 

(3)           such
Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

 

(4)           the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

 

32

 

(5)           during
such 60-day period the Holders of a majority in principal amount of the
Securities of that series do not give the Trustee a direction inconsistent with
the request.

 

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

 

SECTION 6.07                                                                    Rights
of Holders to Receive Payment.

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security to receive payment of principal of and
premium, if any, and interest on and any Additional Amounts with respect to the
Security, on or after the respective due dates expressed in the Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

 

SECTION 6.08                                                                    Collection
Suit by Trustee.

 

If an Event of Default specified in clause (1) or
(2) of Section 6.01 hereof occurs and is continuing, the Trustee is
authorized to recover judgment in its own name and as trustee of an express
trust against the Partnership, the Guarantor or a Subsidiary Guarantor for the
amount of principal, premium (if any), interest and any Additional Amounts
remaining unpaid on the Securities of the series affected by the Event of
Default, and interest on overdue principal and premium, if any, and, to the
extent lawful, interest on overdue interest, and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

SECTION 6.09                                                                    Trustee
May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim
and other papers or documents and to take such actions, including participating
as a member, voting or otherwise, of any committee of creditors, as may be
necessary or advisable to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Partnership, the Guarantor or a Subsidiary
Guarantor or their respective creditors or properties and shall be entitled and
empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claims and any Bankruptcy Custodian in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 out
of the estate in any such proceeding, shall be denied for any reason, payment
of the same shall be secured by a lien on, and shall be paid out of, any and
all distributions, dividends, money, securities and other properties which the
Holders of the Securities may be entitled to receive in such proceeding whether
in liquidation or

 

33

 

under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

SECTION 6.10                                                                    Priorities.

 

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

 

First:  to the Trustee for
amounts due under Section 7.07;

 

Second:  to Holders for amounts due and unpaid on the
Securities in respect of which or for the benefit of which such money has been
collected, for principal, premium (if any), interest and any Additional Amounts
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal, premium (if any), interest
and any Additional Amounts, respectively; and

 

Third:  to the Partnership.

 

The Trustee, upon prior written notice to the
Partnership, may fix record dates and payment dates for any payment to Holders
pursuant to this Article VI.

 

To the fullest extent allowed under applicable law, if
for the purpose of obtaining a judgment against the Partnership, the Guarantor or
a Subsidiary Guarantor in any court it is necessary to convert the sum due in
respect of the principal of, premium (if any) or interest on or Additional
Amounts with respect to the Securities of any series (the “Required Currency”)
into a currency in which a judgment will be rendered (the “Judgment Currency”),
the rate of exchange used for purposes of rendering the judgment shall be the
rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York the Required Currency with the Judgment
Currency on the Business Day in The City of New York next preceding that on
which final judgment is given.  None of
the Partnership, the Guarantor, any Subsidiary Guarantor or the Trustee shall
be liable for any shortfall nor shall it benefit from any windfall in payments
to Holders of Securities under this Section 6.10 caused by a change in
exchange rates between the time the amount of a judgment against it is
calculated as above and the time the Trustee converts the Judgment Currency
into the Required Currency to make payments under this Section 6.10 to
Holders of Securities, but payment of such judgment shall discharge all amounts
owed by the Partnership, the Guarantor and the Subsidiary Guarantors on the
claim or claims underlying such judgment.

 

SECTION 6.11                                                                    Undertaking
for Costs.

 

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good

 

34

 

faith of the claims or defenses made by the party
litigant.  This Section 6.11 does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07,
or a suit by a Holder or Holders of more than 10% in principal amount of the
then outstanding Securities of any series.

 

ARTICLE VII

TRUSTEE

 

SECTION 7.01                                                                    Duties
of Trustee.

 

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

 

(b)           Except
during the continuance of an Event of Default with respect to the Securities of
any series:

 

(1)           the
Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(2)           in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, the Trustee shall examine such certificates and opinions to
determine whether, on their face, they appear to conform to the requirements of
this Indenture.

 

(c)           The
Trustee may not be relieved from liabilities for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(1)           this
paragraph does not limit the effect of Section 7.01(b);

 

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

 

(3)           the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(d)           Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the provisions of this Section 7.01.

 

(e)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

 

35

 

(f)            The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Partnership, the Guarantor and the
Subsidiary Guarantors.  Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.  All money
received by the Trustee shall, until applied as herein provided, be held in
trust for the payment of the principal of, premium (if any) and interest on and
Additional Amounts with respect to the Securities.

 

SECTION 7.02                                                                    Rights
of Trustee.

 

(a)           The
Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)           Before
the Trustee acts or refrains from acting, it may require instruction, an
Officers’ Certificate or an Opinion of Counsel or both to be provided.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such instruction,
Officers’ Certificate or Opinion of Counsel. 
The Trustee may consult at the Partnership’s expense with counsel of its
selection and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(c)           The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care.

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers
conferred upon it by this Indenture.

 

(e)           Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Partnership, the Guarantor or any Subsidiary
Guarantor shall be sufficient if signed by an Officer of the General Partner.

 

(f)            The
Trustee shall not be charged with knowledge of any Default or Event of Default
with respect to the Securities, unless either (1) a Responsible Officer
shall have actual knowledge of such Default or Event of Default or (2) written
notice of such Default or Event of Default shall have been given to the Trustee
by the Partnership, the Guarantor, any Subsidiary Guarantor or by any Holder of
the Securities, and such notice references the Securities and this Indenture.

 

(g)           The
permissive rights of the Trustee enumerated herein shall not be construed as
duties.

 

SECTION 7.03                                                                    May Hold
Securities.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Partnership, the Guarantor, any Subsidiary Guarantor or any of their respective
Affiliates with the same rights it would have if it were not

 

36

 

Trustee. Any Agent may do the same with like rights
and duties.  However, the Trustee is
subject to Sections 7.10 and 7.11.

 

SECTION 7.04                                                                    Trustee’s
Disclaimer.

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Partnership’s use of the proceeds from the Securities or any money paid
to the Partnership, the Guarantor or any Subsidiary Guarantor or upon the Partnership’s,
the Guarantor’s or such Subsidiary Guarantor’s direction under any provision
hereof, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and it shall not be
responsible for any statement or recital herein or any statement in the
Securities other than its certificate of authentication.

 

SECTION 7.05                                                                    Notice
of Defaults.

 

If a Default or Event of Default with respect to the
Securities of any series occurs and is continuing and it is known to the
Trustee, the Trustee shall mail to Holders of Securities of such series a
notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of
Default in payment of principal of, premium (if any) and interest on and
Additional Amounts or any sinking fund installment with respect to the
Securities of such series, the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Holders of Securities of such series.

 

SECTION 7.06                                                                    Reports
by Trustee to Holders.

 

Within 60 days after each January 15 of each year
after the execution of this Indenture, the Trustee shall mail to Holders of a
series, the Guarantor, the Subsidiary Guarantors and the Partnership a brief
report dated as of such reporting date that complies with TIA § 313(a); provided, however, that if no event described in TIA § 313(a) has
occurred within the twelve months preceding the reporting date with respect to
a series, no report need be transmitted to Holders of such series.  The Trustee also shall comply with TIA § 313(b).  The Trustee shall also transmit by mail all
reports if and as required by TIA §§ 313(c) and 313(d).

 

A copy of each report at the time of its mailing to
Holders of a series of Securities shall be filed by the Partnership, the
Guarantor or a Subsidiary Guarantor with the SEC and each securities exchange,
if any, on which the Securities of such series are listed. The Partnership
shall notify the Trustee if and when any series of Securities is listed on any
securities exchange.

 

SECTION 7.07                                                                    Compensation
and Indemnity.

 

The Partnership agrees to pay to the Trustee for its
acceptance of this Indenture and services hereunder such compensation as the
Partnership and the Trustee shall from time to time agree in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The
Partnership agrees to reimburse the Trustee upon request for all reasonable
disbursements, advances and expenses incurred by it.  Such

 

37

 

expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

 

The Partnership hereby indemnifies the Trustee and any
predecessor Trustee against any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee), incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, except as set forth in the next following paragraph.  The Trustee shall notify the Partnership, the
Guarantor and the Subsidiary Guarantors promptly of any claim for which it may
seek indemnity.  The Partnership shall
defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Partnership shall pay the reasonable fees and expenses of such counsel.  The Partnership need not pay for any
settlement made without its consent.

 

The Partnership shall not be obligated to reimburse
any expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee’s negligence, willful misconduct or bad faith.

 

To secure the payment obligations of the Partnership
in this Section 7.07, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee, except
that held in trust to pay principal of, premium (if any) and interest on and
any Additional Amounts with respect to Securities of any series.  Such lien and the Partnership’s obligations
under this Section 7.07 shall survive the resignation or removal of the
Trustee and the satisfaction and discharge of this Indenture.

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(5) or (6) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

SECTION 7.08                                                                    Replacement
of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign and be discharged at any time
with respect to the Securities of one or more series by so notifying the
Partnership, the Guarantor and the Subsidiary Guarantors.  The Holders of a majority in principal amount
of the then outstanding Securities of any series may remove the Trustee with
respect to the Securities of such series by so notifying the Trustee, the
Partnership, the Guarantor and the Subsidiary Guarantors.  The Partnership may remove the Trustee if:

 

(1)           the
Trustee fails to comply with Section 7.10;

 

(2)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

38

 

(3)           a
Bankruptcy Custodian or public officer takes charge of the Trustee or its
property; or

 

(4)           the
Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, with respect to the Securities
of one or more series, the Partnership shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any
particular series).  Within one year
after the successor Trustee with respect to the Securities of any series takes
office, the Holders of a majority in principal amount of the Securities of such
series then outstanding may appoint a successor Trustee to replace the
successor Trustee appointed by the Partnership.

 

If a successor Trustee with respect to the Securities
of any series does not take office within 30 days after the retiring or removed
Trustee resigns or is removed, the retiring or removed Trustee (at the expense
of the Partnership), the Partnership, the Guarantor, any Subsidiary Guarantor
or the Holders of at least 10% in principal amount of the then outstanding
Securities of such series may petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

 

If the Trustee with respect to the Securities of a series
fails to comply with Section 7.10, any Holder of Securities of such series
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee with respect to the Securities of
such series.

 

In case of the appointment of a successor Trustee with
respect to all Securities, each such successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee, to the Partnership, to
the Guarantor and to the Subsidiary Guarantors. 
Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the retiring Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

 

In case of the appointment of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Partnership,
the Guarantor, the Subsidiary Guarantors, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more (but not all)
series shall execute and deliver an indenture supplemental hereto in which each
successor Trustee shall accept such appointment and that (1) shall confer
to each successor Trustee all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee
is not retiring with respect to all Securities, shall confirm that all the
rights, powers and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the

 

39

 

administration of the trusts hereunder by more than
one Trustee.  Nothing herein or in such
supplemental indenture shall constitute such Trustees as co-trustees of the
same trust, and each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee.  Upon the
execution and delivery of such supplemental indenture, the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee shall have all the rights, powers and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.  On request of the Partnership or any
successor Trustee, such retiring Trustee shall transfer to such successor
Trustee all property held by such retiring Trustee as Trustee with respect to
the Securities of that or those series to which the appointment of such successor
Trustee relates.  Such retiring Trustee
shall, however, have the right to deduct its unpaid fees and expenses,
including attorneys’ fees.

 

Notwithstanding replacement of the Trustee or Trustees
pursuant to this Section 7.08, the obligations of the Partnership under Section 7.07
shall continue for the benefit of the retiring Trustee or Trustees.

 

SECTION 7.09                                                                    Successor
Trustee by Merger, etc.

 

Subject to Section 7.10, if the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act shall be the successor Trustee; provided,
however, that in the case of a transfer of all or substantially all
of its corporate trust business to another corporation, the transferee
corporation expressly assumes all of the Trustee’s liabilities hereunder.

 

In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated; and in case at that
time any of the Securities shall not have been authenticated, any successor to
the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in
all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the
Trustee shall have.

 

SECTION 7.10                                                                    Eligibility;
Disqualification.

 

There shall at all times be a Trustee hereunder which
shall be a corporation or banking association organized and doing business
under the laws of the United States, any State thereof or the District of
Columbia and authorized under such laws to exercise corporate trust power,
shall be subject to supervision or examination by federal or state (or the
District of Columbia) authority and shall have, or be a subsidiary of a bank or
bank holding company having, a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition.

 

The Indenture shall always have a Trustee who
satisfies the requirements of TIA §§ 310(a)(1), 310(a)(2) and
310(a)(5).  The Trustee is subject to and
shall comply with the

 

40

 

provisions of TIA § 310(b) during the period
of time required by this Indenture. Nothing in this Indenture shall prevent the
Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA § 310(b).

 

SECTION 7.11                       Preferential
Collection of Claims Against the Partnership, the Guarantor or a Subsidiary Guarantor.

 

The Trustee is subject to and shall comply with the
provisions of TIA § 311(a), excluding any creditor relationship listed in
TIA § 311(b).  A Trustee who has
resigned or has been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

ARTICLE VIII

DISCHARGE OF INDENTURE

 

SECTION 8.01                                                                    Termination
of the Partnership’s, the Guarantor’s and the Subsidiary Guarantors’ Obligations.

 

(a)           This
Indenture shall cease to be of further effect with respect to the Securities of
a series (except that the Partnership’s obligations under Section 7.07,
the Trustee’s and Paying Agent’s obligations under Section 8.03 and the
rights, powers, protections and privileges accorded the Trustee under Article VII
shall survive), and the Trustee, on demand of the Partnership, shall execute
proper instruments acknowledging the satisfaction and discharge of this
Indenture with respect to the Securities of such series, when:

 

(1)           either:

 

(A)          all
outstanding Securities of such series theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

 

(B)           all
outstanding Securities of such series not theretofore delivered to the Trustee
for cancellation:

 

(i)                                     have
become due and payable, or

 

(ii)                                  will
become due and payable at their Stated Maturity within one year, or

 

(iii)                               are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Partnership,

 

and, in the case
of clause (i), (ii) or (iii) above, the Partnership, the Guarantor or
a Subsidiary Guarantor has irrevocably deposited or caused to be deposited with
the Trustee as funds (immediately available to the Holders in the case of clause
(i)) in trust for such purpose (x) cash in an amount, or
(y) Government Obligations with respect to such series, maturing as to
principal and interest at such times and in

 

41

 

such amounts as
will ensure the availability of cash in an amount or (z) a combination
thereof, which will be sufficient, in the opinion (in the case of clauses (y)
and (z)) of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge the entire indebtedness on the Securities of such series for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable) or for principal, premium, if any, and
interest to the Stated Maturity or Redemption Date, as the case may be; or

 

(C)           the
Partnership, the Guarantor and the Subsidiary Guarantors have properly
fulfilled such other means of satisfaction and discharge as is specified, as
contemplated by Section 2.01, to be applicable to the Securities of such
series;

 

(2)           the
Partnership, the Guarantor or a Subsidiary Guarantor has paid or caused to be
paid all other sums payable by them hereunder with respect to the Securities of
such series; and

 

(3)           the
Partnership has delivered to the Trustee an Officers’ Certificate stating that
all conditions precedent to satisfaction and discharge of this Indenture with
respect to the Securities of such series have been complied with, together with
an Opinion of Counsel to the same effect.

 

(b)           Unless
this Section 8.01(b) is specified as not being applicable to
Securities of a series as contemplated by Section 2.01, the Partnership
may, at its option, terminate certain of its, the Guarantor’s and the
Subsidiary Guarantors’ respective obligations under this Indenture (“covenant
defeasance”) with respect to the Securities of a series if:

 

(1)           the
Partnership, the Guarantor or a Subsidiary Guarantor has irrevocably deposited
or caused to be irrevocably deposited with the Trustee as trust funds in trust
for the purpose of making the following payments, specifically pledged as
security for and dedicated solely to the benefit of the Holders of Securities
of such series, (i) money in the currency in which payment of the Securities
of such series is to be made in an amount, or (ii) Government Obligations
with respect to such series, maturing as to principal and interest at such
times and in such amounts as will ensure the availability of money in the
currency in which payment of the Securities of such series is to be made in an
amount or (iii) a combination thereof, that is sufficient, in the opinion
(in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay the principal of and premium (if any) and
interest on all Securities of such series on each date that such principal,
premium (if any) or interest is due and payable and (at the Stated Maturity
thereof or upon redemption as provided in Section 8.01(e)) to pay all
other sums payable by it hereunder; provided that
the Trustee shall have been irrevocably instructed to apply such money and/or
the proceeds of such Government Obligations to the payment of said principal,
premium (if any) and interest with respect to the Securities of such series as
the same shall become due;

 

42

 

(2)           the
Partnership has delivered to the Trustee an Officers’ Certificate stating that
all conditions precedent to satisfaction and discharge of this Indenture with
respect to the Securities of such series have been complied with, and an
Opinion of Counsel to the same effect;

 

(3)           no
Default or Event of Default with respect to the Securities of such series shall
have occurred and be continuing on the date of such deposit;

 

(4)           the
Partnership shall have delivered to the Trustee an Opinion of Counsel from a
nationally recognized counsel acceptable to the Trustee or a private letter
ruling issued by the United States Internal Revenue Service to the effect that
the Holders will not recognize income, gain or loss for United States Federal
income tax purposes as a result of the Partnership’s exercise of its option
under this Section 8.01(b) and will be subject to United States Federal
income tax on the same amount and in the same manner and at the same times as
would have been the case if such option had not been exercised;

 

(5)           the
Partnership, the Guarantor and the Subsidiary Guarantors have complied with any
additional conditions specified pursuant to Section 2.01 to be applicable
to the discharge of Securities of such series pursuant to this Section 8.01;
and

 

(6)           such
deposit and discharge shall not cause the Trustee to have a conflicting interest
as defined in TIA § 310(b).

 

In such event, this Indenture shall cease to be of
further effect (except as set forth in this paragraph), and the Trustee, on
demand of the Partnership, shall execute proper instruments acknowledging
satisfaction and discharge under this Indenture.  However, the Partnership’s, the Guarantor’s and
the Subsidiary Guarantors’ respective obligations in Sections 2.05, 2.06, 2.07,
2.08, 2.09, 4.01, 4.02, 7.07, 7.08, 8.04 and 10.01, the Trustee’s and Paying
Agent’s obligations in Section 8.03 and the rights, powers, protections
and privileges accorded the Trustee under Article VII shall survive until
all Securities of such series are no longer outstanding.  Thereafter, only the Partnership’s
obligations in Section 7.07 and the Trustee’s and Paying Agent’s
obligations in Section 8.03 shall survive with respect to Securities of
such series.

 

After such irrevocable deposit made pursuant to this Section 8.01(b) and
satisfaction of the other conditions set forth herein, the Trustee upon request
shall acknowledge in writing the discharge of the Partnership’s, the Guarantor’s
and the Subsidiary Guarantors’ obligations under this Indenture with respect to
the Securities of such series except for those surviving obligations specified
above.

 

In order to have money available on a payment date to
pay principal of or premium (if any) or interest on the Securities, the
Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary
money.  Government Obligations shall not
be callable at the issuer’s option.

 

(c)           If
the Partnership, the Guarantor and the Subsidiary Guarantors have previously
complied or are concurrently complying with Section 8.01(b) (other
than any additional conditions specified pursuant to Section 2.01 that are
expressly applicable only to covenant defeasance) with respect to Securities of
a series, then, unless this Section 8.01(c) is

 

43

 

specified as not
being applicable to Securities of such series as contemplated by Section 2.01,
the Partnership may elect that its, the Guarantor’s and the Subsidiary
Guarantors’ respective obligations to make payments with respect to Securities
of such series be discharged (“legal defeasance”), if:

 

(1)           no
Default or Event of Default under clauses (5) and (6) of Section 6.01
hereof shall have occurred at any time during the period ending on the 91st day
after the date of deposit contemplated by Section 8.01(b) (it being
understood that this condition shall not be deemed satisfied until the
expiration of such period);

 

(2)           unless
otherwise specified with respect to Securities of such series as contemplated
by Section 2.01, the Partnership has delivered to the Trustee an Opinion
of Counsel from a nationally recognized counsel acceptable to the Trustee to
the effect referred to in Section 8.01(b)(4) with respect to such
legal defeasance, which opinion is based on (i) a private letter ruling issued
by the United States Internal Revenue Service addressed to the Partnership, (ii) a
published ruling of the Internal Revenue Service pertaining to a comparable
form of transaction or (iii) a change in the applicable federal income tax
law (including regulations) after the date of this Indenture;

 

(3)           the
Partnership, the Guarantor and the Subsidiary Guarantors have complied with any
other conditions specified pursuant to Section 2.01 to be applicable to
the legal defeasance of Securities of such series pursuant to this Section 8.01(c);
and

 

(4)           the
Partnership has delivered to the Trustee a Partnership Request requesting such
legal defeasance of the Securities of such series and an Officers’ Certificate
stating that all conditions precedent with respect to such legal defeasance of
the Securities of such series have been complied with, together with an Opinion
of Counsel to the same effect.

 

In such event, the Partnership, the Guarantor and the
Subsidiary Guarantors will be discharged from their respective obligations
under this Indenture and the Securities of such series to pay principal of,
premium (if any) and interest on, and any Additional Amounts with respect to,
Securities of such series, the Partnership’s, the Guarantor’s and the
Subsidiary Guarantors’ obligations under Sections 4.01, 4.02 and 10.01 shall
terminate with respect to such Securities, and the entire indebtedness of the
Partnership evidenced by such Securities and of the Guarantor and of the
Subsidiary Guarantors evidenced by the related Guarantees shall be deemed paid
and discharged.

 

(d)           If
and to the extent additional or alternative means of satisfaction, discharge or
defeasance of Securities of a series are specified to be applicable to such
series as contemplated by Section 2.01, each of the Partnership, the
Guarantor and the Subsidiary Guarantors may terminate any or all of its
obligations under this Indenture with respect to Securities of a series and any
or all of its obligations under the Securities of such series if it fulfills
such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of such
series.

 

44

 

(e)           If
Securities of any series subject to subsection (a), (b), (c) or (d) of
this Section 8.01 are to be redeemed prior to their Stated Maturity,
whether pursuant to any optional redemption provisions or in accordance with
any mandatory or optional sinking fund provisions, the terms of the applicable
trust arrangement shall provide for such redemption, and the Partnership shall
make such arrangements as are reasonably satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense,
of the Partnership.

 

SECTION 8.02                                                                    Application
of Trust Money.

 

The Trustee or a trustee satisfactory to the Trustee
and the Partnership shall hold in trust money or Government Obligations
deposited with it pursuant to Section 8.01 hereof.  It shall apply the deposited money and the
money from Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of the
series with respect to which the deposit was made.

 

SECTION 8.03                                                                    Repayment
to Partnership, Guarantor or Subsidiary Guarantor.

 

The Trustee and the Paying Agent shall promptly pay to
the Partnership, the Guarantor or any Subsidiary Guarantor any excess money or
Government Obligations (or proceeds therefrom) held by them at any time upon
the written request of the Partnership.

 

Subject to the requirements of any applicable
abandoned property laws, the Trustee and the Paying Agent shall pay to the
Partnership upon written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that remain
unclaimed for two years after the date upon which such payment shall have
become due.  After payment to the
Partnership, Holders entitled to the money must look to the Partnership for
payment as general creditors unless an applicable abandoned property law
designates another Person, and all liability of the Trustee and the Paying
Agent with respect to such money shall cease.

 

SECTION 8.04                                                                    Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply
any money or Government Obligations deposited with respect to Securities of any
series in accordance with Section 8.01 by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the
obligations of the Partnership, the Guarantor and the Subsidiary Guarantors under
this Indenture with respect to the Securities of such series and under the
Securities of such series shall be revived and reinstated as though no deposit
had occurred pursuant to Section 8.01 until such time as the Trustee or
the Paying Agent is permitted to apply all such money or Government Obligations
in accordance with Section 8.01; provided, however, that
if the Partnership, the Guarantor or any Subsidiary Guarantor has made any
payment of principal of, premium (if any) or interest on or any Additional
Amounts with respect to any Securities because of the reinstatement of its
obligations, the Partnership, the Guarantor or such Subsidiary Guarantor, as
the case may be, shall be subrogated to the rights of the Holders of such
Securities to receive

 

45

 

such payment from the money or Government Obligations
held by the Trustee or the Paying Agent.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS

 

SECTION 9.01                                                                    Without
Consent of Holders.

 

The Partnership, the Guarantor, the Subsidiary
Guarantors and the Trustee may amend or supplement this Indenture or the
Securities or waive any provision hereof or thereof without the consent of any
Holder:

 

(1)           to
cure any ambiguity, omission, defect or inconsistency;

 

(2)           to
comply with Section 5.01;

 

(3)           to
provide for uncertificated Securities in addition to or in place of
certificated Securities, or to provide for the issuance of bearer Securities
(with or without coupons);

 

(4)           to
provide any security for, or to add any guarantees of or additional obligors
on, any series of Securities or the related Guarantees;

 

(5)           to
comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

 

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

 

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

 

(8)           to
change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become
effective only when there is no outstanding Security of any series created
prior to the execution of such amendment or supplemental indenture that is
adversely affected in any material respect by such change in or elimination of
such provision;

 

(9)           to
establish the form or terms of Securities of any series as permitted by Section 2.01;

 

(10)         to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of

 

46

 

Securities
pursuant to Section 8.01; provided, however,
that any such action shall not adversely affect the interest of the Holders of
Securities of such series or any other series of Securities in any material
respect; or

 

(11)         to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 7.08.

 

Upon the request of the Partnership, accompanied by a
Board Resolution, and upon receipt by the Trustee of the documents described in
Section 9.06, the Trustee shall, subject to Section 9.06, join with
the Partnership, the Guarantor and the Subsidiary Guarantors in the execution
of any supplemental indenture authorized or permitted by the terms of this
Indenture and make any further appropriate agreements and stipulations that may
be therein contained.

 

SECTION 9.02                                                                With
Consent of Holders.

 

Except as provided below in this Section 9.02,
the Partnership, the Guarantor, the Subsidiary Guarantors and the Trustee may
amend or supplement this Indenture with the written consent (including consents
obtained in connection with a tender offer or exchange offer for Securities of
any one or more series or all series or a solicitation of consents in respect
of Securities of any one or more series or all series, provided
that in each case such offer or solicitation is made to all Holders of then
outstanding Securities of each such series (but the terms of such offer or
solicitation may vary from series to series)) of the Holders of at least a
majority in principal amount of the then outstanding Securities of all series
affected by such amendment or supplement (acting as one class).

 

Upon the request of the Partnership, accompanied by a
Board Resolution, and upon the filing with the Trustee of evidence of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Partnership, the Guarantor and the Subsidiary Guarantors in the
execution of such amendment or supplemental indenture.

 

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

 

The Holders of a majority in principal amount of the
then outstanding Securities of one or more series or of all series (acting as
one class) may waive compliance in a particular instance by the Partnership, the
Guarantor or any Subsidiary Guarantor with any provision of this Indenture with
respect to Securities of such series (including waivers obtained in connection
with a tender offer or exchange offer for Securities of such series or a
solicitation of consents in respect of Securities of such series, provided that in each case such offer or solicitation is
made to all Holders of then outstanding Securities of such series (but the
terms of such offer or solicitation may vary from series to series)).

 

47

 

However, without the consent of each Holder affected,
an amendment, supplement or waiver under this Section 9.02 may not:

 

(1)           reduce
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver;

 

(2)           reduce
the rate of or change the time for payment of interest, including default
interest, on any Security;

 

(3)           reduce
the principal of, any premium on or any mandatory sinking fund payment with
respect to, or change the Stated Maturity of, any Security or reduce the amount
of the principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

 

(4)           reduce
the premium, if any, payable upon the redemption of any Security or change the
time at which any Security may or shall be redeemed;

 

(5)           change
any obligation of the Partnership, the Guarantor or any Subsidiary Guarantor to
pay Additional Amounts with respect to any Security;

 

(6)           change
the coin or currency or currencies (including composite currencies) in which
any Security or any premium, interest or Additional Amounts with respect
thereto are payable;

 

(7)           impair
the right to institute suit for the enforcement of any payment of principal of,
premium (if any) or interest on or any Additional Amounts with respect to any
Security pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

 

(8)           make
any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to Section 6.04
or 6.07 or make any change in this sentence of Section 9.02;

 

(9)           waive
a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the
Securities; or

 

(10)         except
as provided in Section 10.04, release the Guarantor or any Subsidiary
Guarantor or modify the related Guarantees in any manner materially adverse to
the Holders.

 

A supplemental indenture that changes or eliminates
any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of Securities,
or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series.

 

48

 

The right of any Holder to participate in any consent
required or sought pursuant to any provision of this Indenture (and the
obligation of the Partnership, the Guarantor or any Subsidiary Guarantor to
obtain any such consent otherwise required from such Holder) may be subject to
the requirement that such Holder shall have been the Holder of record of any
Securities with respect to which such consent is required or sought as of a
date identified by the Partnership, the Guarantor or such Subsidiary Guarantor in
a notice furnished to Holders in accordance with the terms of this Indenture.

 

After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Partnership shall mail to the Holders of each Security
affected thereby a notice briefly describing the amendment, supplement or
waiver.  Any failure of the Partnership
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amendment, supplement or waiver.

 

SECTION 9.03                                                                    Compliance
with the Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the
Securities shall comply in form and substance with the TIA as then in effect.

 

SECTION 9.04                                                                    Revocation
and Effect of Consents.

 

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. 
However, any such Holder or subsequent Holder may revoke the consent as
to his or her Security or portion of a Security if the Trustee receives written
notice of revocation before a date and time therefor identified by the Partnership,
the Guarantor or any Subsidiary Guarantor in a notice furnished to such Holder
in accordance with the terms of this Indenture or, if no such date and time
shall be identified, the date the amendment, supplement or waiver becomes
effective.  An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds
every Holder.

 

The Partnership, the Guarantor or any Subsidiary
Guarantor may, but shall not be obligated to, fix a record date (which need not
comply with TIA § 316(c)) for the purpose of determining the Holders
entitled to consent to any amendment, supplement or waiver or to take any other
action under this Indenture.  If a record
date is fixed, then notwithstanding the provisions of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously given,
whether or not such Persons continue to be Holders after such record date.  No consent shall be valid or effective for
more than 90 days after such record date unless consents from Holders of the
principal amount of Securities required hereunder for such amendment or waiver
to be effective shall have also been given and not revoked within such 90-day
period.

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it is of the type described in
any of clauses (1) through (9) of Section 9.02 hereof.

 

49

 

In such case, the amendment, supplement or waiver
shall bind each Holder who has consented to it and every subsequent Holder that
evidences the same debt as the consenting Holder’s Security.

 

SECTION 9.05                                                                    Notation
on or Exchange of Securities.

 

If an amendment or supplement changes the terms of an
outstanding Security, the Partnership may require the Holder of the Security to
deliver it to the Trustee.  The Trustee
may place an appropriate notation on the Security at the request of the
Partnership regarding the changed terms and return it to the Holder.  Alternatively, if the Partnership so
determines, the Partnership in exchange for the Security shall issue and the
Trustee shall authenticate a new Security that reflects the changed terms.  Failure to make the appropriate notation or
to issue a new Security shall not affect the validity of such amendment or
supplement.

 

Securities of any series authenticated and delivered
after the execution of any amendment or supplement may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any
matter provided for in such amendment or supplement.

 

SECTION 9.06                                                                    Trustee
to Sign Amendments, etc.

 

The Trustee shall sign any amendment or supplement
authorized pursuant to this Article if the amendment or supplement does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign it.  In signing or
refusing to sign such amendment or supplement, the Trustee shall be entitled to
receive, in addition to the documents required by Section 11.04, and,
subject to Section 7.01 hereof, shall be fully protected in relying upon,
an Opinion of Counsel provided at the expense of the Partnership, the Guarantor
or a Subsidiary Guarantor to the effect that such amendment or supplement is
authorized or permitted by this Indenture.

 

ARTICLE X

GUARANTEE

 

SECTION 10.01                                                              Guarantee.

 

(a)           Notwithstanding
any provision of this Article X to the contrary, the provisions of this Article X
relating to the Subsidiary Guarantors shall be applicable only to, and inure
solely to the benefit of, the Securities of any series designated, pursuant to Section 2.01,
as entitled to the benefits of the related Guarantee of each of the Subsidiary
Guarantors.

 

(b)           For
value received, the Guarantor and each of the Subsidiary Guarantors hereby
fully, unconditionally and absolutely guarantees (the “Guarantee”) to the
Holders and to the Trustee the due and punctual payment of the principal of,
and premium, if any, and interest on the Securities and all other amounts due
and payable under this Indenture and the Securities by the Partnership, when
and as such principal, premium, if any, and interest shall become due and
payable, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise, according to the terms of the Securities and this
Indenture, subject to the limitations set forth in Section 10.03.

 

50

 

(c)           Failing
payment when due of any amount guaranteed pursuant to the related Guarantee,
for whatever reason, the Guarantor and each of the Subsidiary Guarantors will
be jointly and severally obligated to pay the same immediately. Each of the
Guarantees hereunder is intended to be a general, unsecured, unsubordinated
obligation of the Guarantor and the related Subsidiary Guarantor and will rank pari passu in right of payment with all Debt of the
Guarantor and such Subsidiary Guarantor that is not, by its terms, expressly
subordinated in right of payment to such Guarantee.  The Guarantor and each of the Subsidiary
Guarantors hereby agrees that its obligations hereunder shall be full,
unconditional and absolute, irrespective of the validity, regularity or
enforceability of the Securities, its Guarantee, the Guarantee of the Guarantor
and any other Subsidiary Guarantor or this Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Partnership, the Guarantor or any Subsidiary Guarantor, or any
action to enforce the same or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of the Guarantor or the
Subsidiary Guarantors.  The Guarantor and
each of the Subsidiary Guarantors hereby agrees that in the event of a default
in payment of the principal of, or premium, if any, or interest on the
Securities of such series, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise, legal proceedings may be
instituted by the Trustee on behalf of the Holders or, subject to Section 6.06,
by the Holders, on the terms and conditions set forth in this Indenture,
directly against the Guarantor and such Subsidiary Guarantor to enforce its Guarantee
without first proceeding against the Partnership or any other Subsidiary
Guarantor.

 

(d)           The
obligations of the Guarantor and each of the Subsidiary Guarantors under this Article X
shall be as aforesaid full, unconditional and absolute and shall not be impaired,
modified, released or limited by any occurrence or condition whatsoever,
including, without limitation, (i) any compromise, settlement, release,
waiver, renewal, extension, indulgence or modification of, or any change in,
any of the obligations and liabilities of the Partnership, the Guarantor or any
of the Subsidiary Guarantors contained in the Securities or this Indenture, (ii) any
impairment, modification, release or limitation of the liability of the
Partnership, the Guarantor, any of the Subsidiary Guarantors or any of their estates
in bankruptcy, or any remedy for the enforcement thereof, resulting from the
operation of any present or future provision of any applicable Bankruptcy Law,
as amended, or other statute or from the decision of any court, (iii) the
assertion or exercise by the Partnership, the Guarantor, any of the Subsidiary
Guarantors or the Trustee of any rights or remedies under the Securities or
this Indenture or their delay in or failure to assert or exercise any such
rights or remedies, (iv) the assignment or the purported assignment of any
property as security for the Securities, including all or any part of the
rights of the Partnership, the Guarantor or any of the Subsidiary Guarantors
under this Indenture, (v) the extension of the time for payment by the
Partnership, the Guarantor or any of the Subsidiary Guarantors of any payments
or other sums or any part thereof owing or payable under any of the terms and
provisions of the Securities or this Indenture or of the time for performance
by the Partnership, the Guarantor or any of the Subsidiary Guarantors of any
other obligations under or arising out of any such terms and provisions or the
extension or the renewal of any thereof, (vi) the modification or
amendment (whether material or otherwise) of any duty, agreement or obligation
of the Partnership, the Guarantor or any of the Subsidiary Guarantors set forth
in this Indenture, (vii) the voluntary or involuntary liquidation,
dissolution, sale or other disposition of all or substantially all of the
assets, marshaling of assets and liabilities, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors,

 

51

 

reorganization,
arrangement, composition or readjustment of, or other similar proceeding
affecting, the Partnership, the Guarantor or any of the Subsidiary Guarantors or
any of their respective assets, or the disaffirmance of the Securities, the
Guarantee or this Indenture in any such proceeding, (viii) the release or
discharge of the Partnership, the Guarantor or any of the Subsidiary Guarantors
from the performance or observance of any agreement, covenant, term or
condition contained in any of such instruments by operation of law, (ix) the
unenforceability of the Securities of such series, the related Guarantees or
this Indenture or (x) any other circumstances (other than payment in full or
discharge of all amounts guaranteed pursuant to the related Guarantees) which
might otherwise constitute a legal or equitable discharge of a surety or
guarantor.

 

(e)           The
Guarantor and each of the Subsidiary Guarantors hereby (i) waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of the merger, insolvency or bankruptcy of the Partnership, the Guarantor
or any of the Subsidiary Guarantors and all demands whatsoever, (ii) acknowledges
that any agreement, instrument or document evidencing its Guarantee may be
transferred and that the benefit of its obligations hereunder shall extend to
each holder of any agreement, instrument or document evidencing its Guarantee
without notice to it and (iii) covenants that its Guarantee will not be
discharged except by complete performance of such Guarantee.  The Guarantor and each of the Subsidiary
Guarantors further agrees that if at any time all or any part of any payment
theretofore applied by any Person to its Guarantee is, or must be, rescinded or
returned for any reason whatsoever, including, without limitation, the
insolvency, bankruptcy or reorganization of the Partnership, the Guarantor or
any of the Subsidiary Guarantors, such Guarantee shall, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in
existence notwithstanding such application, and such Guarantee shall continue
to be effective or be reinstated, as the case may be, as though such
application had not been made.

 

(f)            The
Guarantor and each of the Subsidiary Guarantors shall be subrogated to all
rights of the Holders and the Trustee against the Partnership in respect of any
amounts paid by the Guarantor or such Subsidiary Guarantor pursuant to the
provisions of this Indenture; provided, however,
that the Guarantor or such Subsidiary Guarantor shall not be entitled to
enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Securities of such series and the related
Guarantee shall have been paid in full or discharged.

 

SECTION 10.02                                                              Execution
and Delivery of Guarantees.

 

To further evidence its Guarantee set forth in Section 10.01,
the Guarantor and each of the Subsidiary Guarantors hereby agrees that a
notation relating to such Guarantee, substantially in the form attached hereto
as Annex A, shall be endorsed on each Security of the series entitled to the
benefits of such Guarantee authenticated and delivered by the Trustee, which Notation
of Guarantee shall be executed by either manual or facsimile signature of an
Officer of the Guarantor's general partner or an Officer of K-Sea General
Partner GP LLC or such Subsidiary Guarantor, as the case may be. The Guarantor and
each of the Subsidiary Guarantors hereby agrees that its Guarantee set forth in
Section 10.01 shall remain in full force and effect notwithstanding any
failure to endorse on each Security a notation relating to such Guarantee. If
any Officer of the Guarantor's general partner or of such Subsidiary Guarantor,
whose signature is on this Indenture or a notation of Guarantee no longer holds
that office at the time the Trustee authenticates such Security or at any

 

52

 

time thereafter, the Guarantee of such Security shall
be valid nevertheless. The delivery of any Security of a series entitled to the
benefits of a Guarantee under this Article X by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Guarantee set forth in this Indenture on behalf of the Guarantor and each
Subsidiary Guarantor.

 

SECTION 10.03                                                              Limitation
on Liability of the Guarantor and the Subsidiary Guarantors.

 

The Guarantor and by its acceptance hereof each Holder
of a Security of a series entitled to the benefits of a Guarantor’s Guarantee
under this Article X hereby confirms that it is the intention of all such
parties that the guarantee by the Guarantor pursuant to its Guarantee not
constitute a fraudulent transfer or conveyance for purposes of any federal or
state law. To effectuate the foregoing intention, the Holders of a Security
entitled to the benefits of such Guarantee, the Guarantor and the Subsidiary
Guarantors hereby irrevocably agree that the obligations of the Guarantor under
its Guarantee shall be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of the Guarantor and to any
collections from or payments made by or on behalf of any Subsidiary Guarantor
in respect of the obligations of such Subsidiary Guarantor under its Guarantee result
in the obligations of the Guarantor under its Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law.

 

Each Subsidiary Guarantor and by its acceptance hereof
each Holder of a Security of a series entitled to the benefits of such
Subsidiary Guarantor’s Guarantee under this Article X hereby confirms that
it is the intention of all such parties that the guarantee by such Subsidiary
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any federal or state law.  To effectuate the foregoing intention, the
Holders of a Security entitled to the benefits of such Guarantee, the Guarantor
and the Subsidiary Guarantors hereby irrevocably agree that the obligations of
each Subsidiary Guarantor under its Guarantee shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Subsidiary Guarantor and to any collections from or
payments made by or on behalf of the Guarantor or any other Subsidiary
Guarantor in respect of the obligations of the Guarantor or such other
Subsidiary Guarantor under its Guarantee, result in the obligations of such
Subsidiary Guarantor under its Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law.

 

SECTION 10.04                                                              Release
of Guarantor or Subsidiary Guarantors from Guarantee.

 

(a)           Notwithstanding
any other provisions of this Indenture, the Guarantee of the Guarantor or any
Subsidiary Guarantor may be released upon the terms and subject to the
conditions set forth in this Section 10.04.  Provided that no Default shall have occurred
and shall be continuing under this Indenture, any Guarantee incurred by the
Guarantor or a Subsidiary Guarantor pursuant to this Article X shall be
unconditionally released and discharged (i) in the case of a Subsidiary
Guarantor, automatically upon (A) any sale, exchange or transfer, whether
by way of merger or otherwise, to any Person that is not an Affiliate of the
Partnership, of all of the Partnership’s direct or indirect equity interests in
such Subsidiary Guarantor (provided such
sale, exchange or transfer is not prohibited by this Indenture) or (B) the
merger of such Subsidiary Guarantor into the Partnership, the Guarantor or any
other Subsidiary Guarantor or the liquidation and dissolution of such Subsidiary
Guarantor (in each case to the extent not

 

53

 

prohibited by this
Indenture) or (ii) in the case of the Guarantor, automatically upon the
merger of the Guarantor into the Partnership or any Subsidiary Guarantor or the
liquidation or dissolution of the Guarantor (in each case to the extent not
prohibited by this Indenture) or (iii) in the case of the Guarantor or a
Subsidiary Guarantor, following delivery of a written notice of such release or
discharge by the Partnership to the Trustee, upon the release or discharge of
all guarantees by the Guarantor or such Subsidiary Guarantor, as the case may
be, of any Debt of the Partnership other than obligations arising under this
Indenture and any Securities issued hereunder, except a discharge or release by
or as a result of payment under such guarantees.

 

(b)           The
Trustee shall deliver an appropriate instrument evidencing any release of the
Guarantor or a Subsidiary Guarantor from its Guarantee upon receipt of a written
request of the Partnership accompanied by an Officers’ Certificate and an
Opinion of Counsel that the Guarantor or the Subsidiary Guarantor, as the case
may be, is entitled to such release in accordance with the provisions of this
Indenture. If the Guarantor or any Subsidiary Guarantor is not so released, it
shall remain liable for the full amount of principal of (and premium, if any,
on) and interest on the Securities entitled to the benefits of such Guarantee
as provided in this Indenture, subject to the limitations of Section 10.03.

 

SECTION 10.05                                                              Contribution.

 

In order to provide for just and equitable
contribution among the Subsidiary Guarantors and the Guarantor, the Subsidiary
Guarantors and the Guarantor hereby agree, inter se, that in the event any
payment or distribution is made by the Guarantor or any Subsidiary Guarantor (a
“Funding Guarantor”) under its Guarantee, such Funding Guarantor shall be
entitled to a contribution from the Guarantor and each other Subsidiary
Guarantor (as applicable) in a pro rata amount based on the net assets of the
Guarantor and each Subsidiary Guarantor (including the Funding Guarantor) for
all payments, damages and expenses incurred by that Funding Guarantor in
discharging the Partnership’s obligations with respect to the Securities of a
series entitled to the benefits of a Guarantee under this Article X or any
other Subsidiary Guarantor’s or the Guarantor’s obligations with respect to its
Guarantee of such series of Securities.

 

ARTICLE XI

MISCELLANEOUS

 

SECTION 11.01                                                              Trust
Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by operation of TIA § 318(c), the
imposed duties shall control.

 

SECTION 11.02                                                              Notices.

 

Any notice or communication by the Partnership, the
Guarantor, any Subsidiary Guarantor or the Trustee to the others is duly given
if in writing and delivered in person or mailed by first-class mail (registered
or certified, return receipt requested), telex, facsimile or overnight air
courier guaranteeing next day delivery, to the other’s address:

 

54

 

If to the
Partnership, the Guarantor or any Subsidiary Guarantor:

 

K-Sea Operating
Partnership L.P.

3245 Richmond
Terrace

Staten Island, New
York 10303

Attn:  John J. Nicola

Telephone: (718)
720-7207

Facsimile: (718)
815-4650

 

If to the Trustee:

 

Attn:

Telephone:

Facsimile:

 

The Partnership, the Guarantor, any Subsidiary
Guarantor or the Trustee by notice to the others may designate additional or
different addresses for subsequent notices or communications.

 

All notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder shall be
mailed by first-class mail, postage prepaid, to the Holder’s address shown on
the register kept by the Registrar. 
Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it, except in the case of notice to the Trustee, it is duly
given only when received.

 

If the Partnership, the Guarantor or a Subsidiary
Guarantor mails a notice or communication to Holders, it shall mail a copy to
the Partnership, the Guarantor and the other Subsidiary Guarantors, as the case
may be, and to the Trustee and each Agent at the same time.

 

All notices or communications, including, without
limitation, notices to the Trustee, the Partnership, the Guarantor or a
Subsidiary Guarantor by Holders, shall be in writing, except as otherwise set
forth herein.

 

In case by reason of the suspension of regular mail
service, or by reason of any other cause, it shall be impossible to mail any
notice required by this Indenture, then such method of notification as shall be
made with the approval of the Trustee shall constitute a sufficient mailing of
such notice.

 

55

 

SECTION 11.03                                                              Communication
by Holders with Other Holders.

 

Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the
Securities.  The Partnership, the
Guarantor, the Subsidiary Guarantors, the Trustee, the Registrar and anyone
else shall have the protection of TIA § 312(c).

 

SECTION 11.04                                                              Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Partnership, the
Guarantor or a Subsidiary Guarantor to the Trustee to take any action under this
Indenture, the Partnership, the Guarantor or such Subsidiary Guarantor, as the
case may be, shall, if requested by the Trustee, furnish to the Trustee at the expense
of the Partnership, the Guarantor or such Subsidiary Guarantor, as the case may
be:

 

(1)           an
Officers’ Certificate (which shall include the statements set forth in Section 11.05)
stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(2)           an
Opinion of Counsel (which shall include the statements set forth in Section 11.05
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been complied with.

 

SECTION 11.05                                                              Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) shall comply with the
provisions of TIA § 314(e) and shall include:

 

(1)           a
statement that the Person making such certificate or opinion has read such
covenant or condition;

 

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

 

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

 

(4)           a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been complied with.

 

56

 

SECTION 11.06                                                              Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for action
by or at a meeting of Holders.  The
Registrar or the Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

 

SECTION 11.07                                                              Legal
Holidays.

 

If a payment date is a Legal Holiday at a Place of
Payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

 

SECTION 11.08                                                              No
Recourse Against Others.

 

A director, manager, officer, employee, stockholder,
partner or other owner of the Partnership, the Guarantor, a Subsidiary
Guarantor, the General Partner or the Trustee, as such, shall not have any
liability for any obligations of the Partnership under the Securities, for any
obligations of the Guarantor or any Subsidiary Guarantor under the Guarantee,
or for any obligations of the Partnership, the Guarantor, any Subsidiary
Guarantor, or the Trustee under this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  Each Holder by accepting a Security waives
and releases all such liability.  The
waiver and release shall be part of the consideration for the issuance of
Securities.

 

SECTION 11.09                                                              Governing Law.

 

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

 

SECTION 11.10                                                              No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Partnership, the Guarantor, any
Subsidiary Guarantor or any other Subsidiary of the Partnership.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

SECTION 11.11                                                              Successors.

 

All agreements of the Partnership, the Guarantor and each
of the Subsidiary Guarantors in this Indenture and the Securities shall bind
its successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

 

SECTION 11.12                                                              Severability.

 

In case any provision in this Indenture or in the
Securities or in any Guarantee shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining

 

57

 

provisions shall, to the fullest extent permitted by
applicable law, not in any way be affected or impaired thereby.

 

SECTION 11.13                                                              Counterpart
Originals.

 

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

 

SECTION 11.14                                                              Table
of Contents, Headings, etc.

 

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

 

58

 

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

 

	
   

  	
  K-SEA OPERATING
  PARTNERSHIP L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea OLP GP, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA TRANSPORTATION
  PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea General Partner
  L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K-Sea General Partner
  GP LLC,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-SEA TRANSPORTATION
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORFOLK ENVIRONMENTAL
  SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
											

 

S-59

 

	
   

  	
  K-SEA ACQUISITION1, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA ACQUISITION2, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [                                                           ],
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

S-60

 

ANNEX A

 

NOTATION OF GUARANTEE

 

The Guarantor and 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 Guarantor and 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 X of the
Indenture and reference is hereby made to the Indenture for the precise terms
of the Guarantee.

 

	
   

  	
  K-SEA TRANSPORTATION
  PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea General Partner
  L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K-Sea General Partner
  GP LLC,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF SUBSIDIARY
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF SUBSIDIARY
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

A-1Exhibit 4.4

 

 

K-SEA OPERATING
PARTNERSHIP L.P.

as Issuer

 

K-SEA TRANSPORTATION
PARTNERS L.P.

as Guarantor

 

and

 

K-SEA TRANSPORTATION INC.

 

NORFOLK ENVIRONMENTAL
SERVICES, INC.

 

K-SEA ACQUISITION1, LLC

 

and

 

K-SEA ACQUISITION2, LLC

as Potential Subsidiary Guarantors

 

and

 

[                            ]

as Trustee

 

 

Indenture

 

Dated as of                    ,
2005

 

 

Subordinated Debt
Securities

 

 

 

K-SEA OPERATING PARTNERSHIP L.P.

 

Reconciliation and tie between
Trust Indenture Act of 1939

and Indenture, dated as of              ,
2005

	
  Section of

  Trust Indenture

  Act of 1939

  	
   

  	
   

  	
   

  	
  Section(s) of

  Indenture

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
   

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.08, 7.10

  
	
  § 311

  	
   

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  § 312

  	
   

  	
  (a)

  	
   

  	
  2.07

  
	
   

  	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  § 313

  	
   

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  § 314

  	
   

  	
  (a)

  	
   

  	
  4.03, 4.04

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (e)

  	
   

  	
  12.05

  
	
  § 315

  	
   

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
   

  	
  (d)(1)

  	
   

  	
  7.01(c)(1)

  
	
   

  	
   

  	
  (d)(2)

  	
   

  	
  7.01(c)(2)

  
	
   

  	
   

  	
  (d)(3)

  	
   

  	
  7.01(c)(3)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  § 316

  	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a)(last sentence)

  	
   

  	
  2.11

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  § 317

  	
   

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  2.06

  
	
  § 318

  	
   

  	
  (a)

  	
   

  	
  12.01

  
							

 

Note:                   This
reconciliation and tie shall not, for any purpose, be deemed to be a part of
the Indenture.

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions

  	
   

  
	
  SECTION 1.02

  	
  Other Definitions

  	
   

  
	
  SECTION 1.03

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  
	
  SECTION 1.04

  	
  Rules of
  Construction

  	
   

  
	
  SECTION 1.05

  	
  Non-Recourse
  to the General Partner; No Personal Liability of Officers, Directors,
  Employees or Partners

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Amount
  Unlimited; Issuable in Series

  	
   

  
	
  SECTION 2.02

  	
  Denominations

  	
   

  
	
  SECTION 2.03

  	
  Forms Generally

  	
   

  
	
  SECTION 2.04

  	
  Execution,
  Authentication, Delivery and Dating

  	
   

  
	
  SECTION 2.05

  	
  Registrar
  and Paying Agent

  	
   

  
	
  SECTION 2.06

  	
  Paying
  Agent to Hold Money in Trust

  	
   

  
	
  SECTION 2.07

  	
  Holder Lists

  	
   

  
	
  SECTION 2.08

  	
  Transfer and
  Exchange

  	
   

  
	
  SECTION 2.09

  	
  Replacement
  Securities

  	
   

  
	
  SECTION 2.10

  	
  Outstanding
  Securities

  	
   

  
	
  SECTION 2.11

  	
  Original
  Issue Discount and Treasury Securities

  	
   

  
	
  SECTION 2.12

  	
  Temporary
  Securities

  	
   

  
	
  SECTION 2.13

  	
  Cancellation

  	
   

  
	
  SECTION 2.14

  	
  Payments;
  Defaulted Interest

  	
   

  
	
  SECTION 2.15

  	
  Persons Deemed
  Owners

  	
   

  
	
  SECTION 2.16

  	
  Computation
  of Interest

  	
   

  
	
  SECTION 2.17

  	
  Global
  Securities; Book-Entry Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Applicability
  of Article

  	
   

  
	
  SECTION 3.02

  	
  Notice to the
  Trustee

  	
   

  
	
  SECTION 3.03

  	
  Selection
  of Securities To Be Redeemed

  	
   

  
	
  SECTION 3.04

  	
  Notice of
  Redemption

  	
   

  
	
  SECTION 3.05

  	
  Effect
  of Notice of Redemption

  	
   

  
	
  SECTION 3.06

  	
  Deposit
  of Redemption Price

  	
   

  
	
  SECTION 3.07

  	
  Securities
  Redeemed in Part

  	
   

  
	
  SECTION 3.08

  	
  Purchase of
  Securities

  	
   

  
	
  SECTION 3.09

  	
  Mandatory
  and Optional Sinking Funds

  	
   

  
	
  SECTION 3.10

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
   

  
	
  SECTION 3.11

  	
  Redemption
  of Securities for Sinking Fund

  	
   

  

 

ii

 

	
  ARTICLE IV COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Payment of
  Securities

  	
   

  
	
  SECTION 4.02

  	
  Maintenance
  of Office or Agency

  	
   

  
	
  SECTION 4.03

  	
  SEC
  Reports; Financial Statements

  	
   

  
	
  SECTION 4.04

  	
  Compliance
  Certificate

  	
   

  
	
  SECTION 4.05

  	
  Existence

  	
   

  
	
  SECTION 4.06

  	
  Waiver
  of Stay, Extension or Usury Laws

  	
   

  
	
  SECTION 4.07

  	
  Additional Amounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Limitations
  on Mergers and Consolidations

  	
   

  
	
  SECTION 5.02

  	
  Successor
  Person Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Events of Default

  	
   

  
	
  SECTION 6.02

  	
  Acceleration

  	
   

  
	
  SECTION 6.03

  	
  Other Remedies

  	
   

  
	
  SECTION 6.04

  	
  Waiver of Defaults

  	
   

  
	
  SECTION 6.05

  	
  Control by Majority

  	
   

  
	
  SECTION 6.06

  	
  Limitations on Suits

  	
   

  
	
  SECTION 6.07

  	
  Rights
  of Holders to Receive Payment

  	
   

  
	
  SECTION 6.08

  	
  Collection
  Suit by Trustee

  	
   

  
	
  SECTION 6.09

  	
  Trustee May File
  Proofs of Claim

  	
   

  
	
  SECTION 6.10

  	
  Priorities

  	
   

  
	
  SECTION 6.11

  	
  Undertaking for Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Duties of Trustee

  	
   

  
	
  SECTION 7.02

  	
  Rights of Trustee

  	
   

  
	
  SECTION 7.03

  	
  May Hold
  Securities

  	
   

  
	
  SECTION 7.04

  	
  Trustee’s Disclaimer

  	
   

  
	
  SECTION 7.05

  	
  Notice of Defaults

  	
   

  
	
  SECTION 7.06

  	
  Reports by
  Trustee to Holders

  	
   

  
	
  SECTION 7.07

  	
  Compensation
  and Indemnity

  	
   

  
	
  SECTION 7.08

  	
  Replacement of
  Trustee

  	
   

  
	
  SECTION 7.09

  	
  Successor
  Trustee by Merger, etc.

  	
   

  
	
  SECTION 7.10

  	
  Eligibility;
  Disqualification

  	
   

  
	
  SECTION 7.11

  	
  Preferential Collection of Claims Against
  the Partnership, the Guarantor or a Subsidiary Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  Termination of the Partnership’s, the
  Guarantor’s and the Subsidiary Guarantors’ Obligations

  	
   

  
	
  SECTION 8.02

  	
  Application of
  Trust Money

  	
   

  
	
  SECTION 8.03

  	
  Repayment
  to Partnership, Guarantor or Subsidiary Guarantor

  	
   

  

 

iii

 

	
  SECTION 8.04

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX SUPPLEMENTAL INDENTURES AND
  AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
  Without
  Consent of Holders

  	
   

  
	
  SECTION 9.02

  	
  With Consent of
  Holders

  	
   

  
	
  SECTION 9.03

  	
  Compliance
  with the Trust Indenture Act

  	
   

  
	
  SECTION 9.04

  	
  Revocation
  and Effect of Consents

  	
   

  
	
  SECTION 9.05

  	
  Notation
  on or Exchange of Securities

  	
   

  
	
  SECTION 9.06

  	
  Trustee
  to Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X SUBORDINATION OF SECURITIES
  AND GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
  Applicability
  of Article; Agreement to Subordinate

  	
   

  
	
  SECTION 10.02

  	
  Liquidation,
  Dissolution, Bankruptcy

  	
   

  
	
  SECTION 10.03

  	
  Default
  on Senior Indebtedness

  	
   

  
	
  SECTION 10.04

  	
  Acceleration
  of Payment of Securities

  	
   

  
	
  SECTION 10.05

  	
  When
  Distribution Must Be Paid Over

  	
   

  
	
  SECTION 10.06

  	
  Subrogation

  	
   

  
	
  SECTION 10.07

  	
  Relative Rights

  	
   

  
	
  SECTION 10.08

  	
  Subordination
  May Not Be Impaired by Partnership

  	
   

  
	
  SECTION 10.09

  	
  Rights
  of Trustee and Paying Agent

  	
   

  
	
  SECTION 10.10

  	
  Distribution
  or Notice to Representative

  	
   

  
	
  SECTION 10.11

  	
  Article X
  Not to Prevent Defaults or Limit Right to Accelerate

  	
   

  
	
  SECTION 10.12

  	
  Trust
  Moneys Not Subordinated

  	
   

  
	
  SECTION 10.13

  	
  Trustee
  Entitled to Rely

  	
   

  
	
  SECTION 10.14

  	
  Trustee
  to Effectuate Subordination

  	
   

  
	
  SECTION 10.15

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness

  	
   

  
	
  SECTION 10.16

  	
  Reliance
  by Holders of Senior Indebtedness on Subordination Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
  Guarantee

  	
   

  
	
  SECTION 11.02

  	
  Execution
  and Delivery of Guarantees

  	
   

  
	
  SECTION 11.03

  	
  Limitation
  on Liability of the Guarantor and the Subsidiary Guarantors

  	
   

  
	
  SECTION 11.04

  	
  Release
  of Guarantor or Subsidiary Guarantors from Guarantee

  	
   

  
	
  SECTION 11.05

  	
  Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01

  	
  Trust
  Indenture Act Controls

  	
   

  
	
  SECTION 12.02

  	
  Notices

  	
   

  
	
  SECTION 12.03

  	
  Communication
  by Holders with Other Holders

  	
   

  
	
  SECTION 12.04

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  
	
  SECTION 12.05

  	
  Statements
  Required in Certificate or Opinion

  	
   

  
	
  SECTION 12.06

  	
  Rules by
  Trustee and Agents

  	
   

  
	
  SECTION 12.07

  	
  Legal Holidays

  	
   

  
	
  SECTION 12.08

  	
  No Recourse
  Against Others

  	
   

  

 

iv

 

	
  SECTION 12.09

  	
  Governing Law

  	
   

  
	
  SECTION 12.10

  	
  No
  Adverse Interpretation of Other Agreements

  	
   

  
	
  SECTION 12.11

  	
  Successors

  	
   

  
	
  SECTION 12.12

  	
  Severability

  	
   

  
	
  SECTION 12.13

  	
  Counterpart Originals

  	
   

  
	
  SECTION 12.14

  	
  Table
  of Contents, Headings, etc.

  	
   

  

 

v

 

INDENTURE (this “Indenture”)
dated as of                       ,
2005 among K-Sea Operating Partnership L.P., a Delaware limited partnership
(the “Partnership”), K-Sea Transportation Partners L.P., a Delaware limited
partnership (the “Guarantor”), K-Sea Transportation Inc., a Delaware
corporation and indirect wholly owned subsidiary of the Partnership (“Transportation”),
Norfolk Environmental Services, Inc., a Delaware corporation and indirect
wholly owned subsidiary of the Partnership (“Norfolk”), K-Sea Acquisition1,
LLC, a Delaware limited liability company and indirect wholly owned subsidiary
of the Partnership (“Acquisition1”), K-Sea Acquisition2, LLC, a Delaware
limited liability company and indirect wholly owned subsidiary of the
Partnership (“Acquisition2” and together with Transportation, Norfolk and
Acquisition1, the “Potential Subsidiary Guarantors”) and [                ],
a                     ,
as trustee (the “Trustee”).

 

The Partnership, the
Guarantor and the Potential Subsidiary Guarantors have duly authorized the
execution and delivery of this Indenture to provide for the issuance from time
to time of the Partnership’s debentures, notes, bonds or other evidences of
indebtedness to be issued in one or more series unlimited as to principal
amount (herein called the “Securities”), and the related Guarantees (as
hereinafter defined), as provided in this Indenture.

 

The Partnership, the
Guarantor and the Potential Subsidiary Guarantors are members of the same
consolidated group of companies. The Guarantor and the Potential Subsidiary
Guarantors will derive direct and indirect economic benefit from the issuance
of the Securities. Accordingly, each Potential Subsidiary Guarantor has duly
authorized the execution and delivery of this Indenture in light of the
possibility that such Potential Subsidiary Guarantor will provide its full and
unconditional guarantee of a series of the Securities to the extent provided in
this Indenture. The Guarantor has duly authorized the execution and delivery of
this Indenture to provide for its full and unconditional guarantee of a series
of the Securities to the extent provided in this Indenture.

 

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

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

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

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01                                                                    Definitions.

 

“Additional Amounts”
means any additional amounts required by the express terms of a Security or by
or pursuant to a Board Resolution, under circumstances specified therein or
pursuant thereto, to be paid by the Partnership, the Guarantor or any Subsidiary
Guarantor, as the case may be, with respect to certain taxes, assessments or
other governmental charges imposed on certain Holders and that are owing to
such Holders.

 

1

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, such specified
Person. For purposes of this definition, “control” of a Person shall mean the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise, and the terms “controlling” and “controlled” shall have meanings
correlative to the foregoing.

 

“Agent” means any
Registrar or Paying Agent.

 

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

 

“Board of Directors”
means the Board of Directors of the General Partner or any authorized committee
of the Board of Directors of the General Partner or any directors and/or
officers of the General Partner to whom such Board of Directors or such
committee shall have duly delegated its authority to act hereunder.

 

“Board Resolution” means
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the General Partner to have been duly adopted by the Board of Directors and to
be in full force and effect on the date of such certification, and delivered to
the Trustee.

 

“Business Day” means any
day that is not a Legal Holiday.

 

“Corporate Trust Office
of the Trustee” means the office of the Trustee located at                                               ,
Attention:                                     ,
and as may be located at such other address as the Trustee may give notice to
the Partnership, the Guarantor and the Subsidiary Guarantors.

 

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

 

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

 

“deliver” or “delivery”
means, in the context of certificated Securities, actual physical delivery of
the certificated Securities to the relevant Person required hereunder, together
with all endorsements, and in the context of Global Securities, the designation
on the records of the Depositary of a change in the beneficial interests of a
holder in a Global Security.

 

“Depositary” means, with
respect to the Securities of any series issuable or issued in whole or in part
in global form, the Person specified pursuant to Section 2.01 hereof as
the initial Depositary with respect to the Securities of such series, until a
successor shall have been appointed and become such pursuant to the applicable
provision of this Indenture, and thereafter “Depositary” shall mean or include
such successor.

 

“Designated Senior
Indebtedness” means (i) any Senior Indebtedness which, at the date of
determination, has an aggregate principal amount outstanding of, or under
which, at the date of determination, the holders thereof are committed to lend
up to, at least $100 million

 

2

 

and (ii) any
other Senior Indebtedness designated, as provided in Section 2.01, in
respect of any series of Securities.

 

“Dollar” or “$” means a
dollar or other equivalent unit in such coin or currency of the United States
as at the time shall be legal tender for the payment of public and private
debt.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and any successor statute.

 

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

 

“General Partner” means K-Sea
OLP GP, LLC, a Delaware limited liability company.

 

“Global Security” means a
Security that is issued in global form in the name of the Depositary with
respect thereto or its nominee.

 

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

 

“Guarantee” means the
guarantee of the Partnership’s obligations under the Securities of a series by
the Guarantor or a Subsidiary Guarantor (specified with respect to such series
as contemplated by Section 2.01(9)) as provided in Article XI.

 

“Guarantor” means the
Person named as the “Guarantor” in the first paragraph of this Indenture until
a successor person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter, “Guarantor” shall mean such successor Person
or Persons who may execute this Indenture, or a supplement thereto, for the
purpose of providing a Guarantee pursuant to this Indenture.

 

“Holder” means a Person
in whose name a Security is registered.

 

3

 

“Indenture” means this
Indenture as amended or supplemented from time to time pursuant to the
provisions hereof, and includes the terms of a particular series of Securities
established as contemplated by Section 2.01.

 

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

 

“Interest Payment Date,”
when used with respect to any Security, shall have the meaning assigned to such
term in the Security as contemplated by Section 2.01.

 

“Issue Date” means, with
respect to Securities of a series, the first date on which the Securities of
such series are originally issued under this Indenture.

 

“K-Sea General Partner GP
LLC” means K-Sea General Partner GP LLC, a Delaware limited liability company
and the general partner of the general partner of the Guarantor.

 

“Legal Holiday” means a
Saturday, a Sunday or a day on which banking institutions in any of The City of
New York, New York or a Place of Payment are authorized or obligated by law,
regulation or executive order to remain closed.

 

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

 

“Officer” means the Chief
Executive Officer, the President, the Chief Operating Officer, any Vice
President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer,
the Controller, the Secretary or any Assistant Secretary of a Person.

 

“Officers’ Certificate”
means a certificate signed by two Officers of a Person.

 

“Opinion of Counsel”
means a written opinion from legal counsel who is acceptable to the Trustee. Such
counsel may be an employee of or counsel to the Partnership, the General
Partner, the Guarantor, a Subsidiary Guarantor or the Trustee.

 

“Original Issue Discount
Security” means any Security that provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 6.02.

 

“Partnership” means the
Person named as the “Partnership” in the first paragraph of this Indenture
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Partnership” shall mean such
successor Person; provided, however, that for
purposes of any provision contained herein which is required by the TIA, “Partnership”
shall also mean each other obligor (if any), other than the Guarantor or a
Subsidiary Guarantor, on the Securities of a series.

 

“Partnership Order” and “Partnership
Request” mean, respectively, a written order or request signed in the name of
the Partnership, the Guarantor and each Subsidiary Guarantor by two Officers of
the General Partner and delivered to the Trustee.

 

4

 

“Person” means any
individual, corporation, partnership, limited liability company, joint venture,
incorporated or unincorporated association, joint stock company, trust,
unincorporated organization or government or other agency, instrumentality or
political subdivision thereof or other entity of any kind.

 

“Place of Payment” means,
with respect to the Securities of any series, the place or places where the
principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities of that series are payable as specified in accordance
with Section 2.01 subject to the provisions of Section 4.02.

 

“principal” of a Security
means the principal of the Security plus, when appropriate, the premium, if
any, on the Security.

 

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

 

“Redemption Price” means,
with respect to any Security to be redeemed, the price at which it is to be
redeemed pursuant to this Indenture.

 

“Representative” means
the trustee, agent or representative (if any) for an issue of Senior
Indebtedness.

 

“Responsible Officer”
means any officer within the corporate trust department of the Trustee having
direct responsibility for the administration of this Indenture or any other
officer to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

 

“Rule 144A
Securities” means Securities of a series designated pursuant to Section 2.01
as entitled to the benefits of Section 4.03(b).

 

“SEC” means the
Securities and Exchange Commission.

 

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

 

“Security Custodian”
means, with respect to Securities of a series issued in global form, the
Trustee for Securities of such series, as custodian with respect to the
Securities of such series, or any successor entity thereto.

 

“Senior Indebtedness,”
unless otherwise provided with respect to the Securities of a series as
contemplated by Section 2.01, means, with respect to a series of
Securities, (1) all Debt of the Guarantor, the Subsidiary Guarantors or
the Partnership, whether currently outstanding or hereafter issued, unless, by
the terms of the instrument creating or evidencing such Debt, it is provided
that such Debt is not superior in right of payment to the Securities of such
series, in the case of the Partnership, or the related Guarantees, in the case
of the Guarantor or the Subsidiary Guarantors, or to other Debt which is pari passu with or subordinated to the Securities of such
series, in the case of the Partnership, or the related Guarantees, in the case
of the Guarantor or the Subsidiary Guarantors, and (2) any modifications,
refunding, deferrals,

 

5

 

renewals, or
extensions of any such Debt or securities, notes or other evidence of Debt
issued in exchange for such Debt; provided that in no event shall “Senior
Indebtedness” include (a) Debt evidenced by the Securities of such series
or any other series or any related Guarantees, (b) Debt of the Guarantor,
any Subsidiary Guarantor or the Partnership owed or owing to any Subsidiary of
the Partnership, (c) Debt of the Guarantor or any Subsidiary Guarantor
owed or owing to the Partnership, (d) Debt to trade creditors or (e) any
liability for taxes owed or owing by the Guarantor, the Subsidiary Guarantors
or the Partnership.

 

“Significant Subsidiary”
means a Subsidiary of the Partnership that is a “significant subsidiary” of the
Partnership as such term is defined in Rule 1-02(w) of Regulation S-X as
of the date hereof.

 

“Stated Maturity” means,
when used with respect to any Security or any installment of principal thereof
or interest thereon, the date specified in such Security as the fixed date on
which the principal of such Security or such installment of principal or
interest is due and payable.

 

“Subsidiary” of any
Person means:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of equity interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers,
trustees or equivalent Persons thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person or any combination thereof; or

 

(2)                                  in
the case of a partnership, more than 50% of the partners’ equity interests,
considering all partners’ equity interests as a single class, is at such time
of determination owned or controlled, directly or indirectly, by such Person or
one or more of the other Subsidiaries of such Person or any combination
thereof.

 

“Subsidiary Guarantors”
means, with respect to any series of Securities, the Person or Persons, if any,
named in accordance with Section 2.01(9) as the “Subsidiary
Guarantors” (i) in or pursuant to a Board Resolution, and set forth, or
determined in the manner provided, in an Officers’ Certificate of the General Partner
or in a Partnership Order, or (ii) in an indenture supplemental hereto
establishing the terms of such series of Securities until a successor Person or
Persons shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Subsidiary Guarantors” with respect to such series
of Securities shall mean such successor Person or Persons, and any other Subsidiary
of the Partnership who may execute this Indenture, or a supplement thereto, for
the purpose of providing a Guarantee for such series of Securities pursuant to
this Indenture. If a series of Securities does not have any Subsidiary
Guarantors, all references in this Indenture to Subsidiary Guarantors shall be
ignored with respect to such series of Securities.

 

6

 

“surrender” shall have
the same meaning as “deliver” in the context of the surrender of a Security.

 

“TIA” means the Trust
Indenture Act of 1939, as amended, as in effect on the date hereof; provided,
however, that, in the event the Trust Indenture Act of 1939 is amended after
such date, “TIA” means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

 

“Trustee” means the
Person named as such above until a successor replaces it in accordance with the
applicable provisions of this Indenture, and thereafter “Trustee” means each
Person who is then a Trustee hereunder, and if at any time there is more than
one such Person, “Trustee” as used with respect to the Securities of any series
means the Trustee with respect to Securities of that series.

 

“United States” means the
United States of America (including the District of Columbia) and its
territories and possessions, which include Puerto Rico, the U.S. Virgin
Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands.

 

“U.S. Government
Obligations” means Government Obligations with respect to Securities payable in
Dollars.

 

SECTION 1.02                                                                    Other
Definitions.

 

	
  Term

  	
   

  	
   

  	
  Defined

  in Section

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.17

  	
   

  
	
  “Bankruptcy Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Blockage Notice”

  	
   

  	
  10.03

  	
   

  
	
  “covenant defeasance”

  	
   

  	
  8.01

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Funding Guarantor”

  	
   

  	
  11.05

  	
   

  
	
  “Judgment Currency”

  	
   

  	
  6.10

  	
   

  
	
  “legal defeasance”

  	
   

  	
  8.01

  	
   

  
	
  “mandatory sinking fund
  payment”

  	
   

  	
  3.09

  	
   

  
	
  “optional sinking fund
  payment”

  	
   

  	
  3.09

  	
   

  
	
  “pay the Subordinated
  Securities”

  	
   

  	
  10.03

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.05

  	
   

  
	
  “Payment Blockage
  Period”

  	
   

  	
  10.03

  	
   

  
	
  “Registrar”

  	
   

  	
  2.05

  	
   

  
	
  “Required Currency”

  	
   

  	
  6.10

  	
   

  
	
  “Successor”

  	
   

  	
  5.01

  	
   

  
	
  “Subordinated
  Securities”

  	
   

  	
  10.01

  	
   

  

 

SECTION 1.03                                                                    Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture (and if the Indenture is not

 

7

 

qualified under
the TIA at the time, as if it were so qualified unless otherwise provided). The
following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the
SEC.

 

“indenture securities”
means the Securities.

 

“indenture security
holder” means a Holder.

 

“indenture to be
qualified” means this Indenture.

 

“indenture trustee” or “institutional
trustee” means the Trustee.

 

“obligor” on the
indenture securities means the Partnership, the Guarantor, any Potential Subsidiary
Guarantor or any other obligor on the Securities.

 

All terms used in this
Indenture that are defined by the TIA, defined by a TIA reference to another
statute or defined by an SEC rule under the TIA have the meanings so
assigned to them.

 

SECTION 1.04                                                                    Rules of
Construction.

 

Unless the context
otherwise requires:

 

(1)                                  a
term has the meaning assigned to it;

 

(2)                                  an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

(3)                                  “or”
is not exclusive;

 

(4)                                  words
in the singular include the plural, and in the plural include the singular;

 

(5)                                  provisions
apply to successive events and transactions; and

 

(6)                                  all
references in this instrument to Articles and Sections are references to the
corresponding Articles and Sections in and of this instrument.

 

	
  SECTION 1.05

  	
   

  	
  Non-Recourse to
  the General Partner; No Personal Liability of Officers, Directors, Employees
  or Partners.

  

 

Obligations of the
Partnership, the Guarantor and a Subsidiary Guarantor under this Indenture, the
Securities and the related Guarantees are non-recourse to the General Partner,
and its respective Affiliates (other than the Partnership, the Guarantor and such
Subsidiary Guarantor), and payable only out of cash flow and assets of the
Partnership, the Guarantor and such Subsidiary Guarantor. The Trustee, and each
Holder of a Security by its acceptance thereof, will be deemed to have agreed
in this Indenture that (1) neither the General Partner nor its assets (nor
any of its respective Affiliates other than the Partnership, the Guarantor and
a

 

8

 

Subsidiary
Guarantor, nor its respective assets) shall be liable for any of the
obligations of the Partnership, the Guarantor and a Subsidiary Guarantor under
this Indenture, such Securities or such related Guarantees, and (2) no
director, manager, officer, employee, partner or unitholder, as such, of the
Partnership, the Guarantor, a Subsidiary Guarantor, the Trustee, the General
Partner or any Affiliate of any of the foregoing entities shall have any
personal liability in respect of the obligations of the Partnership, the
Guarantor and a Subsidiary Guarantor under this Indenture, such Securities or
such related Guarantees by reason of his, her or its status.

 

ARTICLE II

THE SECURITIES

 

SECTION 2.01                                                                    Amount
Unlimited; Issuable in Series.

 

The aggregate
principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

 

The Securities may be
issued in one or more series. There shall be established in or pursuant to a
Board Resolution, and set forth, or determined in the manner provided, in an
Officers’ Certificate of the General Partner or in a Partnership Order, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series:

 

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

 

(2)                                  if
there is to be a limit, the limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 and except
for any Securities which, pursuant to Section 2.04 or 2.17, are deemed
never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series,
the authorized aggregate principal amount of such series may be increased
before or after the issuance of any Securities of the series by a Board
Resolution (or action pursuant to a Board Resolution) to such effect;

 

(3)                                  whether
any Securities of the series are to be issuable initially in temporary global
form and whether any Securities of the series are to be issuable in permanent
global form, as Global Securities or otherwise, and, if so, whether beneficial
owners of interests in any such Global Security may exchange such interests for
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 2.17, and the initial
Depositary and Security Custodian, if any, for any Global Security or
Securities of such series;

 

(4)                                  the
manner in which any interest payable on a temporary Global Security on any
Interest Payment Date will be paid if other than in the manner provided in Section 2.14;

 

9

 

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

 

(6)                                  the
rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, whether and under what circumstances
Additional Amounts with respect to such Securities shall be payable, the date
or dates from which such interest shall accrue, the Interest Payment Dates on
which such interest shall be payable and the record date for the interest
payable on any Securities on any Interest Payment Date, or if other than
provided herein, the Person to whom any interest on Securities of the series
shall be payable;

 

(7)                                  the
place or places where, subject to the provisions of Section 4.02, the
principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities of the series shall be payable;

 

(8)                                  the
period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of
the Partnership, if the Partnership is to have that option, and the manner in
which the Partnership must exercise any such option, if different from those
set forth herein;

 

(9)                                  whether
Securities of the series are entitled to the benefits of any Guarantee of any
Subsidiary Guarantor pursuant to this Indenture, the identity of any such
Subsidiary Guarantors and any terms of such Guarantee with respect to the
Securities of the series in addition to those set forth in Article XI, or
any exceptions to or changes to those set forth in Article XI;

 

(10)                            the
obligation, if any, of the Partnership to redeem, purchase or repay Securities
of the series pursuant to any sinking fund or analogous provisions or at the
option of a Holder thereof and the period or periods within which, the price or
prices (whether denominated in cash, securities or otherwise) at which and the
terms and conditions upon which Securities of the series shall be redeemed,
purchased or repaid in whole or in part pursuant to such obligation;

 

(11)                            if
other than denominations of $1,000 and any integral multiple thereof, the
denomination in which any Securities of the series shall be issuable;

 

(12)                            if
other than Dollars, the form, including equity securities, other debt
securities (including Securities), warrants or any other securities or property
of the Partnership, the Guarantor, any Subsidiary Guarantor or any other
Person, in which payment of the principal of, premium (if any) and interest on
and any Additional Amounts with respect to the Securities of the series shall
be payable;

 

(13)                            if
the amount of payments of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series may be
determined with reference to any commodities, currencies or indices, values,
rates or prices or any other index or formula, the manner in which such amounts
shall be determined;

 

10

 

(14)                            if
other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series that shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 6.02;

 

(15)                            any
additional means of satisfaction and discharge of this Indenture and any
additional conditions or limitations to discharge with respect to Securities of
the series and the related Guarantees pursuant to Article VIII or any
modifications of or deletions from such conditions or limitations;

 

(16)                            any
deletions or modifications of or additions to the Events of Default set forth
in Section 6.01 or covenants of the Partnership, the Guarantor or any
Subsidiary Guarantor set forth in Article IV pertaining to the Securities
of the series;

 

(17)                            any
restrictions or other provisions with respect to the transfer or exchange of
Securities of the series, which may amend, supplement, modify or supersede
those contained in this Article II;

 

(18)                            if
the Securities of the series are to be convertible into or exchangeable for
common units, other debt securities (including Securities), warrants, other
equity securities or any other securities or property of the Partnership, the
Guarantor, any Subsidiary Guarantor or any other Person, at the option of the
Partnership or the Holder or upon the occurrence of any condition or event, the
terms and conditions for such conversion or exchange;

 

(19)                            the
subordination, if any, of the Securities of the series pursuant to Article X
and any changes or additions to Article X or designation of any Designated
Senior Indebtedness;

 

(20)                            whether
the Securities of the series are to be entitled to the benefit of Section 4.03(b) (and
accordingly constitute Rule 144A Securities); and

 

(21)                            any
other terms of the series (which terms shall not be prohibited by the
provisions of this Indenture).

 

All Securities of any one
series shall be substantially identical except as to denomination and except as
may otherwise be provided in or pursuant to the Board Resolution referred to
above and (subject to Section 2.03) set forth, or determined in the manner
provided, in the Officers’ Certificate or Partnership Order referred to above
or in any such indenture supplemental hereto.

 

If any of the terms of
the series are established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action, together with such Board
Resolution, shall be set forth in an Officers’ Certificate or certified by the
Secretary or an Assistant Secretary of the General Partner and delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate or Partnership
Order setting forth the terms of the series.

 

The Securities shall be
subordinated in right of payment to Senior Indebtedness as provided in Article
X and/or as specified as contemplated pursuant to this Section 2.01.

 

 

 

11

 

SECTION 2.02                                                                    Denominations.

 

The Securities of each
series shall be issuable in such denominations as shall be specified as
contemplated by Section 2.01. In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series
denominated in Dollars shall be issuable in denominations of $1,000 and any
integral multiples thereof.

 

SECTION 2.03                                                                    Forms
Generally.

 

The Securities of each
series shall be in fully registered form and in substantially such form or
forms (including temporary or permanent global form) established by or pursuant
to a Board Resolution or in one or more indentures supplemental hereto. The
Securities may have notations, legends or endorsements required by law,
securities exchange rule, the Partnership’s certificate of limited partnership,
agreement of limited partnership or other similar governing documents,
agreements to which the Partnership is subject, if any, or usage (provided that
any such notation, legend or endorsement is in a form acceptable to the
Partnership). A copy of the Board Resolution establishing the form or forms of
Securities of any series shall be delivered to the Trustee at or prior to the
delivery of the Partnership Order contemplated by Section 2.04 for the
authentication and delivery of such Securities.

 

The definitive Securities
of each series shall be printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the
Officers executing such Securities, as evidenced by their execution thereof.

 

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

 

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

 

	
   

  	
  [                                         ],
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory”.

  

 

SECTION 2.04                                                                    Execution,
Authentication, Delivery and Dating.

 

Two Officers of the
General Partner shall sign the Securities on behalf of the Partnership and,
with respect to any related Guarantees, an Officer of K-Sea General Partner GP
LLC and an Officer of each Subsidiary Guarantor shall sign the notation of Guarantee
on behalf of the Guarantor or such Subsidiary Guarantor, as the case may be, in
each case by manual or facsimile signature.

 

If an Officer of the
General Partner whose signature is on a Security no longer holds that office at
the time the Security is authenticated, the Security shall be valid
nevertheless.

 

A Security shall not be
entitled to any benefit under this Indenture or the related Guarantees or be
valid or obligatory for any purpose until authenticated by the manual signature
of an authorized signatory of the Trustee, which signature shall be conclusive
evidence that the

 

12

 

Security has been
authenticated under this Indenture. Notwithstanding the foregoing, if any
Security has been authenticated and delivered hereunder but never issued and
sold by the Partnership, and the Partnership delivers such Security to the Trustee
for cancellation as provided in Section 2.13, together with a written
statement (which need not comply with Section 12.05 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never been
issued and sold by the Partnership, for all purposes of this Indenture such
Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture or the
related Guarantees.

 

At any time and from time
to time after the execution and delivery of this Indenture, the Partnership may
deliver Securities of any series executed by the Partnership to the Trustee for
authentication, and the Trustee shall authenticate and deliver such Securities
for original issue upon a Partnership Order for the authentication and delivery
of such Securities or pursuant to such procedures acceptable to the Trustee as
may be specified from time to time by Partnership Order. Such order shall
specify the amount of the Securities to be authenticated, the date on which the
original issue of Securities is to be authenticated, the name or names of the
initial Holder or Holders and any other terms of the Securities of such series
not otherwise determined. If provided for in such procedures, such Partnership
Order may authorize (1) authentication and delivery of Securities of such
series for original issue from time to time, with certain terms (including,
without limitation, the Maturity dates or dates, original issue date or dates
and interest rate or rates) that differ from Security to Security and (2) may
authorize authentication and delivery pursuant to oral or electronic
instructions from the Partnership or its duly authorized agent, which
instructions shall be promptly confirmed in writing.

 

If the form or terms of
the Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Section 2.01, in authenticating
such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to
receive (in addition to the Partnership Order referred to above and the other
documents required by Section 12.04), and (subject to Section 7.01)
shall be fully protected in relying upon:

 

(a)                                  an
Officers’ Certificate of the General Partner setting forth the Board Resolution
and, if applicable, an appropriate record of any action taken pursuant thereto,
as contemplated by the last paragraph of Section 2.01; and

 

(b)                                 an
Opinion of Counsel to the effect that:

 

(i)                                     the
form of such Securities has been established in conformity with the provisions
of this Indenture;

 

(ii)                                  the
terms of such Securities have been established in conformity with the
provisions of this Indenture; and

 

(iii)                               that
such Securities and the related Guarantees, when authenticated and delivered by
the Trustee and issued by the Partnership in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute

 

13

 

valid and binding obligations of the Partnership, the
Guarantor and the Subsidiary Guarantors, respectively, enforceable against the
Partnership, the Guarantor and the Subsidiary Guarantors, respectively, in
accordance with their respective terms, except as the enforceability thereof
may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws in effect from time to
time affecting the rights of creditors generally, and the application of general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

If all the Securities of
any series are not to be issued at one time, it shall not be necessary to
deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance
of each such Security, but such Officers’ Certificate and Opinion of Counsel
shall be delivered at or before the time of issuance of the first Security of
the series to be issued.

 

The Trustee shall not be
required to authenticate such Securities if the issuance of such Securities
pursuant to this Indenture would affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner not
reasonably acceptable to the Trustee.

 

The Trustee may appoint
an authenticating agent acceptable to the Partnership to authenticate
Securities. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference
in this Indenture to authentication by the Trustee includes authentication by
such agent. An authenticating agent has the same rights as an Agent to deal
with the Partnership, the Guarantor, any Subsidiary Guarantor or an Affiliate
of the Partnership, the Guarantor or any Subsidiary Guarantor.

 

Each Security shall be
dated the date of its authentication.

 

SECTION 2.05                                                                    Registrar
and Paying Agent.

 

The Partnership shall
maintain an office or agency for each series of Securities where Securities of
such series may be presented for registration of transfer or exchange (“Registrar”)
and an office or agency where Securities of such series may be presented for
payment (“Paying Agent”). The Registrar shall keep a register of the Securities
of such series and of their transfer and exchange. The Partnership may appoint
one or more co-registrars and one or more additional paying agents. The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional
paying agent.

 

The Partnership shall
enter into an appropriate agency agreement with any Registrar or Paying Agent
not a party to this Indenture. The agreement shall implement the provisions of
this Indenture that relate to such Agent. The Partnership shall notify the
Trustee of the name and address of any Agent not a party to this Indenture. The
Partnership may change any Paying Agent or Registrar without notice to any
Holder. If the Partnership fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Partnership, the
Guarantor, any Subsidiary Guarantor or any other Subsidiary may act as Paying
Agent or Registrar.

 

The Partnership initially
appoints the Trustee as Registrar and Paying Agent.

 

14

 

SECTION 2.06                                                                    Paying
Agent to Hold Money in Trust.

 

The Partnership shall
require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders or the Trustee all
money held by the Paying Agent for the payment of principal of, premium, if
any, or interest on or any Additional Amounts with respect to Securities and
will notify the Trustee of any default by the Partnership in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. The Partnership at any time may require a Paying Agent to pay all
money held by it to the Trustee and to account for any funds disbursed. Upon
payment over to the Trustee and upon accounting for any funds disbursed, the
Paying Agent (if other than the Partnership, the Guarantor, or another
Subsidiary of the Partnership) shall have no further liability for the money. If
the Partnership, the Guarantor, a Subsidiary Guarantor or another Subsidiary of
the Partnership acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent.
Each Paying Agent shall otherwise comply with TIA § 317(b).

 

SECTION 2.07                                                                    Holder
Lists.

 

The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders and shall otherwise
comply with TIA § 312(a). If the Trustee is not the Registrar with respect
to a series of Securities, the Partnership shall furnish to the Trustee at
least five Business Days before each Interest Payment Date with respect to such
series of Securities, and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders of such series, and the
Partnership shall otherwise comply with TIA § 312(a).

 

SECTION 2.08                                                                    Transfer
and Exchange.

 

Except as set forth in Section 2.17
or as may be provided pursuant to Section 2.01:

 

When Securities of any
series are presented to the Registrar with the request to register the transfer
of such Securities or to exchange such Securities for an equal principal amount
of Securities of the same series of like tenor and of other authorized
denominations, the Registrar shall register the transfer or make the exchange
as requested if its requirements and the requirements of this Indenture for
such transactions are met; provided, however,
that the Securities presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by a written instruction of
transfer in form reasonably satisfactory to the Registrar duly executed by the
Holder thereof or by his attorney, duly authorized in writing, on which
instruction the Registrar can rely.

 

To permit registrations
of transfers and exchanges, the Partnership shall execute and the Trustee shall
authenticate Securities at the Registrar’s written request and submission of
the Securities or Global Securities. No service charge shall be made to a
Holder for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the

 

15

 

Partnership may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than such transfer
tax or similar governmental charge payable upon exchanges pursuant to Section 2.12,
3.07 or 9.05). The Trustee shall authenticate Securities in accordance with the
provisions of Section 2.04. Notwithstanding any other provisions of this
Indenture to the contrary, the Partnership shall not be required to register
the transfer or exchange of (a) any Security selected for redemption in
whole or in part pursuant to Article III, except the unredeemed portion of
any Security being redeemed in part, or (b) any Security during the period
beginning 15 Business Days prior to the mailing of notice of any offer to
repurchase Securities of the series required pursuant to the terms thereof or
of redemption of Securities of a series to be redeemed and ending at the close
of business on the day of mailing.

 

SECTION 2.09                                                                    Replacement
Securities.

 

If any mutilated Security
is surrendered to the Trustee, or if the Holder of a Security claims that the
Security has been destroyed, lost or stolen and the Partnership and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of
such Security, the Partnership shall issue and the Trustee shall authenticate a
replacement Security of the same series if the Trustee’s requirements are met. If
any such mutilated, destroyed, lost or stolen Security has become or is about
to become due and payable, the Partnership in its discretion may, instead of
issuing a new Security, pay such Security. If required by the Trustee, the
Guarantor, any Subsidiary Guarantor or the Partnership, such Holder must
furnish an indemnity bond that is sufficient in the judgment of the Trustee and
the Partnership to protect the Partnership, the Guarantor, each Subsidiary
Guarantor, the Trustee, any Agent or any authenticating agent from any loss
that any of them may suffer if a Security is replaced. The Partnership and the
Trustee may charge a Holder for their expenses in replacing a Security.

 

Every replacement
Security is an additional obligation of the Partnership.

 

SECTION 2.10                                                                    Outstanding
Securities.

 

The Securities
outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Security effected by the Trustee
hereunder and those described in this Section 2.10 as not outstanding.

 

If a Security is replaced
pursuant to Section 2.09, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Security is held by a bona
fide purchaser.

 

If the principal amount
of any Security is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

 

A Security does not cease
to be outstanding because the Partnership, the Guarantor, a Subsidiary
Guarantor or an Affiliate of the Partnership, the Guarantor or a Subsidiary
Guarantor holds the Security.

 

16

 

SECTION 2.11                                                                    Original
Issue Discount and Treasury Securities.

 

In determining whether
the Holders of the required principal amount of Securities have concurred in any
direction, amendment, supplement, waiver or consent, (a) the principal
amount of an Original Issue Discount Security shall be the principal amount
thereof that would be due and payable as of the date of such determination upon
acceleration of the Maturity thereof pursuant to Section 6.02 and (b) Securities
owned by the Partnership, the Guarantor, a Subsidiary Guarantor or any other
obligor upon the Securities or any Affiliate of the Partnership, of the
Guarantor, of a Subsidiary Guarantor or of such other obligor shall be
disregarded, except that, for the purpose of determining whether the Trustee
shall be protected in relying upon any such direction, amendment, supplement,
waiver or consent, only Securities that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

 

SECTION 2.12                                                                    Temporary
Securities.

 

Until definitive
Securities of any series are ready for delivery, the Partnership may prepare and
execute and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities, but may
have variations that the Partnership considers appropriate for temporary
Securities. Without unreasonable delay, the Partnership shall prepare and execute
and the Trustee shall authenticate definitive Securities in exchange for
temporary Securities. Until so exchanged, the temporary Securities shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities.

 

SECTION 2.13                                                                    Cancellation.

 

The Partnership, the
Guarantor or any Subsidiary Guarantor at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to
the Trustee any Securities surrendered to them for registration of transfer,
exchange, payment or redemption or for credit against any sinking fund payment.
The Trustee shall cancel all Securities surrendered for registration of
transfer, exchange, payment, redemption, replacement or cancellation or for
credit against any sinking fund. Unless the Partnership shall direct in writing
that canceled Securities be returned to it, after written notice to the
Partnership all canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee, and the Trustee
shall maintain a record of their disposal. The Partnership may not issue new
Securities to replace Securities that have been paid or that have been
delivered to the Trustee for cancellation.

 

SECTION 2.14                                                                    Payments;
Defaulted Interest.

 

Unless otherwise provided
as contemplated by Section 2.01, interest (except defaulted interest) on
any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Persons who are registered Holders
of that Security at the close of business on the record date next preceding
such Interest Payment Date, even if such Securities are canceled after such
record date and on or before such Interest Payment Date. The Holder must
surrender a Security to a Paying Agent to collect principal payments. Unless
otherwise provided with respect to the Securities of any series, the
Partnership will pay the principal of, premium (if any) and interest on and any
Additional Amounts with

 

17

 

respect to the
Securities in Dollars. Such amounts shall be payable at the offices of the
Trustee or any Paying Agent, provided that
at the option of the Partnership, the Partnership may pay such amounts (1) by
wire transfer with respect to Global Securities or (2) by check payable in
such money mailed to a Holder’s registered address with respect to any
Securities.

 

If the Partnership
defaults in a payment of interest on the Securities of any series, the
Partnership shall pay the defaulted interest in any lawful manner plus, to the
extent lawful, interest on the defaulted interest, in each case at the rate
provided in the Securities of such series and in Section 4.01. The
Partnership may pay the defaulted interest to the Persons who are Holders on a
subsequent special record date. At least 15 days before any special record date
selected by the Partnership, the Partnership (or the Trustee, in the name of
and at the expense of the Partnership upon 20 days’ prior written notice from
the Partnership setting forth such special record date and the interest amount
to be paid) shall mail to Holders a notice that states the special record date,
the related payment date and the amount of such interest to be paid.

 

SECTION 2.15                                                                    Persons
Deemed Owners.

 

The Partnership, the
Guarantor, the Subsidiary Guarantors, the Trustee, any Agent and any
authenticating agent may treat the Person in whose name any Security is
registered as the owner of such Security for the purpose of receiving payments
of principal of, premium (if any) or interest on or any Additional Amounts with
respect to such Security and for all other purposes. None of the Partnership,
the Guarantor, any Subsidiary Guarantor, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary.

 

SECTION 2.16                                                                    Computation
of Interest.

 

Except as otherwise
specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a
year comprising twelve 30-day months.

 

SECTION 2.17                                                                    Global
Securities; Book-Entry Provisions.

 

If Securities of a series
are issuable in global form as a Global Security, as contemplated by Section 2.01,
then, notwithstanding clause (11) of Section 2.01 and the provisions of Section 2.02,
any such Global Security shall represent such of the outstanding Securities of
such series as shall be specified therein and may provide that it shall
represent the aggregate amount of outstanding Securities from time to time
endorsed thereon and that the aggregate amount of outstanding Securities
represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, transfers or redemptions. Any endorsement of
a Global Security to reflect the amount, or any increase or decrease in the
amount, of outstanding Securities represented thereby shall be made by the
Trustee (i) in such manner and upon instructions given by such Person or
Persons as shall be specified in such Security or in a Partnership Order to be
delivered to the Trustee pursuant to Section 2.04 or (ii) otherwise
in accordance with written instructions or such other written form of
instructions as is customary for the Depositary for such Security, from such
Depositary or its nominee on behalf of any Person having a beneficial interest
in such Global Security. Subject to the provisions of Section 2.04 and, if
applicable, Section 2.12, the Trustee shall deliver and redeliver any
Security

 

18

 

in permanent
global form in the manner and upon instructions given by the Person or Persons
specified in such Security or in the applicable Partnership Order. With respect
to the Securities of any series that are represented by a Global Security, the
Partnership, the Guarantor and the Subsidiary Guarantors authorize the
execution and delivery by the Trustee of a letter of representations or other
similar agreement or instrument in the form customarily provided for by the
Depositary appointed with respect to such Global Security. Any Global Security
may be deposited with the Depositary or its nominee, or may remain in the
custody of the Trustee or the Security Custodian therefor pursuant to a FAST
Balance Certificate Agreement or similar agreement between the Trustee and the
Depositary. If a Partnership Order has been, or simultaneously is, delivered,
any instructions by the Partnership with respect to endorsement or delivery or
redelivery of a Security in global form shall be in writing but need not comply
with Section 12.05 and need not be accompanied by an Opinion of Counsel.

 

Members of, or
participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the
Depositary, or the Trustee or the Security Custodian as its custodian, or under
such Global Security, and the Depositary may be treated by the Partnership, the
Guarantor, any Subsidiary Guarantor, the Trustee or the Security Custodian and
any agent of the Partnership, the Guarantor, any Subsidiary Guarantor, the
Trustee or the Security Custodian as the absolute owner of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, (i) the
registered holder of a Global Security of a series may grant proxies and
otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action that a Holder of
Securities of such series is entitled to take under this Indenture or the
Securities of such series and (ii) nothing herein shall prevent the
Partnership, the Guarantor, any Subsidiary Guarantor, the Trustee or the
Security Custodian, or any agent of the Partnership, the Guarantor, any
Subsidiary Guarantor, the Trustee or the Security Custodian, from giving effect
to any written certification, proxy or other authorization furnished by the
Depositary or shall impair, as between the Depositary and its Agent Members,
the operation of customary practices governing the exercise of the rights of a
beneficial owner of any Security.

 

Notwithstanding Section 2.08,
and except as otherwise provided pursuant to Section 2.01, transfers of a
Global Security shall be limited to transfers of such Global Security in whole,
but not in part, to the Depositary, its successors or their respective
nominees. Interests of beneficial owners in a Global Security may be
transferred in accordance with the rules and procedures of the Depositary.
Securities shall be transferred to all beneficial owners in exchange for their
beneficial interests in a Global Security if, and only if, either (1) the
Depositary notifies the Partnership that it is unwilling or unable to continue
as Depositary for the Global Security and a successor Depositary is not
appointed by the Partnership within 90 days of such notice, (2) an Event
of Default has occurred with respect to such series and is continuing and the
Registrar has received a request from the Depositary to issue Securities in
lieu of all or a portion of the Global Security (in which case the Partnership
shall deliver Securities within 30 days of such request) or (3) the
Partnership in its sole discretion determines not to have the Securities
represented by a Global Security.

 

In connection with any
transfer of a portion of the beneficial interests in a Global Security to
beneficial owners pursuant to this Section 2.17, the Registrar shall
reflect on its books and records the date and a decrease in the principal
amount of the Global Security in an

 

19

 

amount equal to
the principal amount of the beneficial interests in the Global Security to be transferred,
and the Partnership shall execute, and the Trustee upon receipt of a
Partnership Order for the authentication and delivery of Securities shall
authenticate and deliver, one or more Securities of the same series of like
tenor and amount.

 

In connection with the
transfer of all of the beneficial interests in a Global Security to beneficial
owners pursuant to this Section 2.17, the Global Security shall be deemed
to be surrendered to the Trustee for cancellation, and the Partnership shall
execute, and the Trustee shall authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interests in
the Global Security, an equal aggregate principal amount of Securities of
authorized denominations.

 

None of the Partnership,
the Guarantor, any Subsidiary Guarantor or the Trustee will have any
responsibility or liability for any aspect of the records relating to, or
payments made on account of, Securities by the Depositary, or for maintaining,
supervising or reviewing any records of the Depositary relating to such
Securities. None of the Partnership, the Guarantor, any Subsidiary Guarantor or
the Trustee shall be liable for any delay by the Holder of the Global Security
or the Depositary in identifying the beneficial owners, and each such Person
may conclusively rely on, and shall be protected in relying on, instructions
from such Holder of the Global Security or the Depositary for all purposes
(including with respect to the registration and delivery, and the respective
principal amounts, of the Securities to be issued).

 

The provisions of the
last sentence of the third paragraph of Section 2.04 shall apply to any
Global Security if such Global Security was never issued and sold by the Partnership
and the Partnership, the Guarantor or a Subsidiary Guarantor delivers to the
Trustee the Global Security together with written instructions (which need not
comply with Section 12.05 and need not be accompanied by an Opinion of
Counsel) with regard to the cancellation or reduction in the principal amount
of Securities represented thereby, together with the written statement
contemplated by the last sentence of the third paragraph of Section 2.04.

 

Notwithstanding the
provisions of Sections 2.03 and 2.14, unless otherwise specified as
contemplated by Section 2.01, payment of principal of, premium (if any)
and interest on and any Additional Amounts with respect to any Global Security
shall be made to the Depositary.

 

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

 

Notwithstanding anything
herein to the contrary, delivery or surrender of a Security shall not be
required in the case of Global Securities in order to obtain the rights or
benefits provided hereunder upon the delivery or surrender of a Security.

 

20

 

ARTICLE III

REDEMPTION

 

SECTION 3.01                                                                    Applicability
of Article.

 

Securities of any series
that are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 2.01 for Securities of any series) in accordance with this Article III.

 

SECTION 3.02                                                                    Notice
to the Trustee.

 

If the Partnership elects
to redeem Securities of any series pursuant to this Indenture, it shall notify
the Trustee of the Redemption Date and the principal amount of Securities of
such series to be redeemed. The Partnership shall so notify the Trustee at
least 45 days before the Redemption Date (unless a shorter notice shall be
satisfactory to the Trustee) by delivering to the Trustee an Officers’
Certificate stating that such redemption will comply with the provisions of
this Indenture and of the Securities of such series. Any such notice may be
canceled at any time prior to the mailing of such notice of such redemption to
any Holder and shall thereupon be void and of no effect.

 

SECTION 3.03                                                                    Selection
of Securities To Be Redeemed.

 

If less than all of the
Securities of any series are to be redeemed (unless all of the Securities of
such series of a specified tenor are to be redeemed), the particular Securities
to be redeemed shall be selected not more than 60 days prior to the Redemption
Date by the Trustee from the outstanding Securities of such series (and tenor)
not previously called for redemption, either pro rata, by lot or by such other
method as the Trustee shall deem appropriate in accordance with industry
standards at the time of such redemption and that may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series or of the principal
amount of Global Securities of such series; provided that,
if at the time of redemption such Securities are registered as a Global
Security, the Depositary shall determine, in accordance with its procedures,
the principal amount of such Securities held by each beneficial owner of
Securities to be redeemed.

 

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

 

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

 

21

 

SECTION 3.04                                                                    Notice
of Redemption.

 

Notice of redemption
shall be given by first-class mail, postage prepaid, mailed not less than 30
nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed, at the address of such Holder appearing in the
register of Securities maintained by the Registrar.

 

All notices of redemption
shall identify the Securities to be redeemed and shall state:

 

(1)                                  the
Redemption Date;

 

(2)                                  the
Redemption Price (or the method of calculating or determining the Redemption
Price);

 

(3)                                  that,
unless the Partnership, the Guarantor and the Subsidiary Guarantors default in
making the redemption payment, interest on Securities called for redemption
ceases to accrue on and after the Redemption Date, and the only remaining right
of the Holders of such Securities is to receive payment of the Redemption Price
upon surrender to the Paying Agent of the Securities redeemed;

 

(4)                                  if
any Security is to be redeemed in part, the portion of the principal amount
thereof to be redeemed and that on and after the Redemption Date, upon
surrender for cancellation of such Security to the Paying Agent, a new Security
or Securities in the aggregate principal amount equal to the unredeemed portion
thereof will be issued without charge to the Holder;

 

(5)                                  that
Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and the name and address of the Paying Agent;

 

(6)                                  that
the redemption is for a sinking or analogous fund, if such is the case; and

 

(7)                                  the
CUSIP number, if any, relating to such Securities.

 

Notice of redemption of
Securities to be redeemed at the election of the Partnership shall be given by
the Partnership or, at the Partnership’s written request, by the Trustee in the
name and at the expense of the Partnership.

 

SECTION 3.05                                                                    Effect
of Notice of Redemption.

 

Once notice of redemption
is mailed, Securities called for redemption become due and payable on the
Redemption Date and at the Redemption Price. Upon surrender to the Paying
Agent, such Securities called for redemption shall be paid at the Redemption
Price, but interest installments whose maturity is on or prior to such
Redemption Date will be payable on the relevant Interest Payment Dates to the
Holders of record at the close of business on the relevant record dates
specified pursuant to Section 2.01.

 

22

 

SECTION 3.06                                                                    Deposit
of Redemption Price.

 

On or prior to 11:00 a.m.,
New York City time, on any Redemption Date, the Partnership, the Guarantor or a
Subsidiary Guarantor shall deposit with the Trustee or the Paying Agent (or, if
the Partnership, the Guarantor or such Subsidiary Guarantor is acting as the
Paying Agent, segregate and hold in trust as provided in Section 2.06) an
amount of money in same day funds sufficient to pay the Redemption Price of,
and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on and any Additional Amounts with respect to, the Securities or
portions thereof which are to be redeemed on that date, other than Securities
or portions thereof called for redemption on that date which have been
delivered by the Partnership, the Guarantor or a Subsidiary Guarantor to the
Trustee for cancellation.

 

If the Partnership, the
Guarantor or a Subsidiary Guarantor complies with the preceding paragraph,
then, unless the Partnership, the Guarantor and the Subsidiary Guarantors default
in the payment of such Redemption Price, interest on the Securities to be
redeemed will cease to accrue on and after the applicable Redemption Date,
whether or not such Securities are presented for payment, and the Holders of
such Securities shall have no further rights with respect to such Securities
except for the right to receive the Redemption Price upon surrender of such
Securities. If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal, premium, if any, any
Additional Amounts, and, to the extent lawful, accrued interest thereon shall,
until paid, bear interest from the Redemption Date at the rate specified
pursuant to Section 2.01 or provided in the Securities or, in the case of
Original Issue Discount Securities, such Securities’ yield to maturity.

 

SECTION 3.07                                                                    Securities
Redeemed in Part.

 

Upon surrender to the
Paying Agent of a Security to be redeemed in part, the Partnership shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge a new Security or Securities, of the same
series and of any authorized denomination as requested by such Holder in
aggregate principal amount equal to, and in exchange for, the unredeemed
portion of the principal of the Security so surrendered that is not redeemed.

 

SECTION 3.08                                                                    Purchase
of Securities.

 

Unless otherwise
specified as contemplated by Section 2.01, the Partnership, the Guarantor,
any Subsidiary Guarantor and any Affiliate of the Partnership, the Guarantor or
any Subsidiary Guarantor may at any time purchase or otherwise acquire
Securities in the open market or by private agreement. Any such acquisition
shall not operate as or be deemed for any purpose to be a redemption of the
indebtedness represented by such Securities. Any Securities purchased or
acquired by the Partnership, the Guarantor or a Subsidiary Guarantor may be
delivered to the Trustee and, upon such delivery, the indebtedness represented
thereby shall be deemed to be satisfied. Section 2.13 shall apply to all
Securities so delivered.

 

SECTION 3.09                                                                    Mandatory
and Optional Sinking Funds.

 

The minimum amount of any
sinking fund payment provided for by the terms of Securities of any series is
herein referred to as a “mandatory sinking fund payment,” and any

 

23

 

payment in excess
of such minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment.” Unless otherwise provided
by the terms of Securities of any series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 3.10. Each
sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series and by this Article III.

 

SECTION 3.10                                                                    Satisfaction
of Sinking Fund Payments with Securities.

 

The Partnership, the
Guarantor or a Subsidiary Guarantor may deliver outstanding Securities of a
series (other than any previously called for redemption) and may apply as a
credit Securities of a series that have been redeemed either at the election of
the Partnership pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such series of Securities; provided that such Securities have not been previously so
credited. Such Securities shall be received and credited for such purpose by
the Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.

 

SECTION 3.11                                                                    Redemption
of Securities for Sinking Fund.

 

Not less than 45 days
prior (unless a shorter period shall be satisfactory to the Trustee) to each
sinking fund payment date for any series of Securities, the Partnership will
deliver to the Trustee an Officers’ Certificate of the General Partner specifying
the amount of the next ensuing sinking fund payment for that series pursuant to
the terms of that series, the portion thereof, if any, which is to be satisfied
by payment of cash and the portion thereof, if any, which is to be satisfied by
delivery of or by crediting Securities of that series pursuant to Section 3.10
and will also deliver or cause to be delivered to the Trustee any Securities to
be so delivered. Failure of the Partnership to timely deliver or cause to be
delivered such Officers’ Certificate and Securities specified in this
paragraph, if any, shall not constitute a default but shall constitute the
election of the Partnership (i) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of
such series in respect thereof and (ii) that the Partnership will make no
optional sinking fund payment with respect to such series as provided in this Section 3.11.

 

If the sinking fund
payment or payments (mandatory or optional or both) to be made in cash on the
next succeeding sinking fund payment date plus any unused balance of any
preceding sinking fund payments made in cash shall exceed $100,000 or a lesser
sum if the Partnership shall so request with respect to the Securities of any
particular series, such cash shall be applied on the next succeeding sinking fund
payment date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the date fixed for
redemption. If such amount shall be $100,000 or less and the Partnership makes
no such request then it shall be carried over until a sum in excess of $100,000
is available. Not less than 30 days before each such sinking fund payment date,
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.03 and cause notice of
the redemption thereof to be given in the name of and at the expense of the

 

24

 

Partnership in the
manner provided in Section 3.04. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.05, 3.06 and 3.07.

 

ARTICLE IV

COVENANTS

 

SECTION 4.01                                                                    Payment
of Securities.

 

The Partnership shall pay
the principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of each series on the dates and in the manner
provided in the Securities of such series and in this Indenture. Principal,
premium, interest and any Additional Amounts shall be considered paid on the
date due if the Paying Agent (other than the Partnership, the Guarantor, a
Subsidiary Guarantor or a Subsidiary) holds by 11:00 a.m., New York City
time, on that date money deposited by the Partnership, the Guarantor or a
Subsidiary Guarantor designated for and sufficient to pay all principal,
premium, interest and any Additional Amounts then due.

 

The Partnership shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium (if any), at a rate equal to
the then applicable interest rate on the Securities to the extent lawful; and
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and any Additional
Amount (without regard to any applicable grace period) at the same rate to the
extent lawful.

 

SECTION 4.02                                                                    Maintenance
of Office or Agency.

 

The Partnership will
maintain in each Place of Payment for any series of Securities an office or
agency (which may be an office of the Trustee, the Registrar or the Paying
Agent) where Securities of that series may be presented for registration of
transfer or exchange, where Securities of that series may be presented for
payment and where notices and demands to or upon the Partnership, the Guarantor
or a Subsidiary Guarantor in respect of the Securities of that series and this
Indenture may be served. Unless otherwise designated by the Partnership by
written notice to the Trustee, the Guarantor and the Subsidiary Guarantors,
such office or agency shall be the office of the Trustee in The City of New
York, which on the date hereof is located at                                             .
The Partnership will give prompt written notice to the Trustee, the Guarantor and
the Subsidiary Guarantors of the location, and any change in the location, of
such office or agency. If at any time the Partnership shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee, the
Guarantor and the Subsidiary Guarantors with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

The Partnership may also
from time to time designate one or more other offices or agencies where the
Securities of one or more series may be presented or surrendered for any or 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 each Place of Payment for Securities of any series for such

 

25

 

purposes. The
Partnership will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

 

SECTION 4.03                                                                    SEC
Reports; Financial Statements.

 

(a)                                  If
the Partnership is subject to Section 13 or 15(d) of the Exchange
Act, the Partnership shall file with the Trustee, within 15 days after it files
the same with the SEC, copies of the annual reports and the information,
documents and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) that the Partnership is
required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. If this Indenture is qualified under the TIA, but not otherwise,
the Partnership shall also comply with the provisions of TIA § 314(a).

 

(b)                                 If
the Partnership is not subject to the requirements of Section 13 or 15(d) of
the Exchange Act, the Partnership shall furnish to all Holders of Rule 144A
Securities and prospective purchasers of Rule 144A Securities designated
by the Holders of Rule 144A Securities, promptly upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) promulgated
under the Securities Act of 1933, as amended.

 

(c)                                  The
Partnership intends to file the reports, information and documents referred to
in Section 4.03(a) hereof with the SEC in electronic form pursuant to
Regulation S-T promulgated by the SEC using the SEC’s Electronic Data
Gathering, Analysis and Retrieval (“EDGAR”) system. The Partnership shall
notify the Trustee in the manner prescribed herein of each such filing. The
Trustee is hereby authorized and directed to access the EDGAR system for
purposes of retrieving the reports so filed. Compliance with the foregoing
shall constitute delivery by the Partnership of such reports to the Trustee in
compliance with the provisions of TIA § 314(a). The Trustee shall have no
duty to search for or obtain any electronic or other filings that the
Partnership makes with the SEC, regardless of whether such filings are
periodic, supplemental or otherwise. Delivery of the reports, information and
documents to the Trustee pursuant to this Section 4.03 shall be solely for
the purposes of compliance with this Section 4.03 and with TIA § 314(a).
The Trustee’s receipt of such reports, information and documents shall not
constitute notice to it of the content thereof or of any matter determinable
from the content thereof, including the Partnership’s and any Subsidiary
Guarantor’s compliance with any of their covenants hereunder, as to which the
Trustee is entitled to rely upon Officers’ Certificates.

 

SECTION 4.04                                                                    Compliance
Certificate.

 

(a)                                  Each
of the Partnership, the Guarantor and the Subsidiary Guarantors shall deliver
to the Trustee, within 120 days after the end of each fiscal year of the
Partnership, the Guarantor and the Subsidiary Guarantors, a statement signed by
an Officer of the General Partner, the Guarantor or such Subsidiary Guarantor,
as the case may be, which need not constitute an Officers’ Certificate,
complying with TIA § 314(a)(4) and stating that in the course of
performance by the signing Officer of his duties as such Officer of the General
Partner, the Guarantor or such Subsidiary Guarantor, as the case may be, he
would normally obtain knowledge of the keeping, observing, performing and
fulfilling by the Partnership, the Guarantor or such Subsidiary Guarantor, as
the case may be, of its obligations under this Indenture, and further stating
that to the best of his knowledge the Partnership, the Guarantor or such
Subsidiary

 

26

 

Guarantor, as the case
may be, has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which such Officer may have knowledge and what action
the Partnership, the Guarantor or such Subsidiary Guarantor, as the case may
be, is taking or proposes to take with respect thereto).

 

(b)                                 The
Partnership, the Guarantor or any Subsidiary Guarantor shall, so long as
Securities of any series are outstanding, deliver to the Trustee, as soon as
practicable, but in no event more than five Business Days, after any Officer of
the General Partner, the Guarantor or such Subsidiary Guarantor, as the case
may be, becoming aware of any Default or Event of Default under this Indenture,
an Officers’ Certificate specifying such Default or Event of Default and what
action the Partnership, the Guarantor or such Subsidiary Guarantor, as the case
may be, is taking or proposes to take with respect thereto.

 

SECTION 4.05                                                                    Existence.

 

Subject to Article V,
the Partnership, the Guarantor and each of the Subsidiary Guarantors that is a
Significant Subsidiary shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence. This Section 4.05
shall not prohibit or restrict the Partnership, the Guarantor or any Subsidiary
Guarantor from converting into a different form of legal entity.

 

SECTION 4.06                                                                    Waiver
of Stay, Extension or Usury Laws.

 

Each of the Partnership, the
Guarantor and the Subsidiary Guarantors covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive it
from paying all or any portion of the principal of or interest on the
Securities as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) each of the
Partnership, the Guarantor and the Subsidiary Guarantors hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

 

SECTION 4.07                                                                    Additional
Amounts.

 

If the Securities of a
series expressly provide for the payment of Additional Amounts, the Partnership
will pay to the Holder of any Security of such series Additional Amounts as
expressly provided therein. Whenever in this Indenture there is mentioned, in
any context, the payment of the principal of or any premium or interest on, or
in respect of, any Security of any series or the net proceeds received from the
sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided for in this Section 4.07
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to the provisions of this

 

27

 

Section 4.07
and express mention of the payment of Additional Amounts (if applicable) in any
provisions hereof shall not be construed as excluding Additional Amounts in
those provisions hereof where such express mention is not made.

 

ARTICLE V

SUCCESSORS

 

SECTION 5.01                                                                    Limitations
on Mergers and Consolidations.

 

Neither the Partnership,
the Guarantor nor any Subsidiary Guarantor shall, in any transaction or series
of transactions, consolidate with or merge into any Person, or sell, lease,
convey, transfer or otherwise dispose of all or substantially all of its assets
to any Person (other than a consolidation or merger of the Partnership and the
Guarantor, the Partnership and one or more Subsidiary Guarantors, the Guarantor
and one or more Subsidiary Guarantors or two or more Subsidiary Guarantors, or
a sale, lease, conveyance, transfer or other disposition of all or
substantially all of the assets of the Partnership to the Guarantor, the
Guarantor to the Partnership, the Partnership to a Subsidiary Guarantor, a
Subsidiary Guarantor to the Partnership, the Guarantor to a Subsidiary
Guarantor, a Subsidiary Guarantor to the Guarantor or of a Subsidiary Guarantor
to another Subsidiary Guarantor), unless:

 

(1)                                  either
(a) the Partnership, the Guarantor or such Subsidiary Guarantor, as the
case may be, shall be the continuing Person or (b) the Person (if other
than the Partnership, the Guarantor or such Subsidiary Guarantor) formed by
such consolidation or into which the Partnership, the Guarantor or such
Subsidiary Guarantor is merged, or to which such sale, lease, conveyance,
transfer or other disposition shall be made (collectively, the “Successor”), is
organized and validly existing under the laws of the United States of America,
any political subdivision thereof or any State thereof or the District of
Columbia, and expressly assumes by supplemental indenture, in the case of the
Partnership, the due and punctual payment of the principal of, premium (if any)
and interest on and any Additional Amounts with respect to all the Securities
and the performance of the Partnership’s covenants and obligations under this
Indenture and the Securities, or, in the case of the Guarantor or such
Subsidiary Guarantor, the performance of the Guarantee and the Guarantor’s or
such Subsidiary Guarantor’s covenants and obligations under this Indenture and
the Securities;

 

(2)                                  immediately
after giving effect to such transaction or series of transactions, no Default or
Event of Default shall have occurred and be continuing or would result
therefrom; and

 

(3)                                  in
the case of clause (1)(b) above, the Successor delivers to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that the
transaction and such supplemental indenture comply with this Indenture.

 

SECTION 5.02                                                                    Successor
Person Substituted.

 

Upon any consolidation or
merger of the Partnership, the Guarantor or a Subsidiary Guarantor, as the case
may be, or any sale, lease, conveyance, transfer or other disposition of all or
substantially all of the assets of the Partnership, the Guarantor or such

 

28

 

Subsidiary
Guarantor in accordance with Section 5.01, the Successor formed by such
consolidation or into or with which the Partnership, the Guarantor or such
Subsidiary Guarantor is merged or to which such sale, lease, conveyance,
transfer or other disposition is made shall succeed to, and be substituted for,
and may exercise every right and power of the Partnership, the Guarantor or
such Subsidiary Guarantor, as the case may be, under this Indenture and the
Securities with the same effect as if such Successor had been named as the
Partnership, the Guarantor or such Subsidiary Guarantor, as the case may be,
herein and the predecessor Partnership, Guarantor or Subsidiary Guarantor, in
the case of a sale, conveyance, transfer or other disposition, shall be
released from all obligations under this Indenture, the Securities and, in the
case of the Guarantor and a Subsidiary Guarantor, its Guarantee.

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

SECTION 6.01                                                                    Events
of Default.

 

Unless either
inapplicable to a particular series or specifically deleted or modified in or
pursuant to the supplemental indenture or Board Resolution establishing such
series of Securities or in the form of Security for such series, an “Event of
Default,” wherever used herein with respect to Securities of any series, occurs
if:

 

(1)                                  there
is a default in the payment of interest on or any Additional Amounts with
respect to any Security of that series when the same becomes due and payable
and such default continues for a period of 30 days;

 

(2)                                  there
is a default in the payment of the principal of or premium, if any, on any
Securities of that series as and when the same shall become due and payable,
whether at Stated Maturity, upon redemption, by declaration, upon required
repurchase or otherwise;

 

(3)                                  there
is a default in the payment of any sinking fund payment with respect to any
Securities of that series as and when the same shall become due and payable;

 

(4)                                  there
is a failure on the part of the Partnership or the Guarantor, or if any series
of Securities outstanding under this Indenture is entitled to the benefits of a
Guarantee, any of the Subsidiary Guarantors, duly to observe or perform any
other of the covenants or agreements on the part of the Partnership, the
Guarantor, or if applicable, any of the Subsidiary Guarantors, in the
Securities of that series, in any resolution of the Board of Directors
authorizing the issuance of that series of Securities, in this Indenture with
respect to such series or in any supplemental Indenture with respect to such
series (other than a default in the performance of a covenant which is
specifically dealt with elsewhere in this Section 6.01), continuing for a
period of 60 days after the date on which written notice specifying such failure
and requiring the Partnership, the Guarantor, or if applicable, the Subsidiary
Guarantors, to remedy the same shall have been given, by registered or
certified mail, to the Partnership, the Guarantor, or if applicable, the
Subsidiary Guarantors, by the Trustee or to the Partnership, the Guarantor, or
if

 

29

 

applicable, the Subsidiary Guarantors, and the Trustee
by the Holders of at least 25% in aggregate principal amount of the Securities
of that series at the time outstanding;

 

(5)                                  the
Partnership or the Guarantor, or if that series of Securities is entitled to
the benefits of a Guarantee by the Subsidiary Guarantors, any of such
Subsidiary Guarantors that is a Significant Subsidiary, pursuant to or within
the meaning of any Bankruptcy Law:

 

(A)                              commences
a voluntary case,

 

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

 

(C)                                consents
to the appointment of a Bankruptcy Custodian of it or for all or substantially
all of its property, or

 

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

 

(6)                                  a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that remains unstayed and in effect for 60 days and that:

 

(A)                              is
for relief against the Partnership, the Guarantor or any Subsidiary Guarantor that
is a Significant Subsidiary as debtor in an involuntary case,

 

(B)                                appoints
a Bankruptcy Custodian of the Partnership, the Guarantor or any Subsidiary
Guarantor that is a Significant Subsidiary or a Bankruptcy Custodian for all or
substantially all of the property of the Partnership, the Guarantor or any
Subsidiary Guarantor that is a Significant Subsidiary, or

 

(C)                                orders
the liquidation of the Partnership, the Guarantor or any Subsidiary Guarantor
that is a Significant Subsidiary;

 

(7)                                  the
Guarantee of the Guarantor or, that series of Securities is entitled to the benefits
of a Guarantee by the Subsidiary Guarantors, the Guarantee of any of such
Subsidiary Guarantors that is a Significant Subsidiary ceases to be in full
force and effect with respect to Securities of that series (except as otherwise
provided in this Indenture) or is declared null and void in a judicial
proceeding or the Guarantor or any such Subsidiary Guarantor denies or
disaffirms its obligations under this Indenture or such Guarantee; or

 

(8)                                  any
other Event of Default provided with respect to Securities of that series
occurs.

 

The term “Bankruptcy
Custodian” means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

 

30

 

The Trustee shall not be
deemed to know or have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a Default or Event of Default
is received by the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Securities and this Indenture.

 

When a Default is cured,
it ceases.

 

A Default under clause (4) or
(8) of this Section 6.01 is not an Event of Default until the Trustee
notifies the Partnership, the Guarantor and the Subsidiary Guarantors, or the
Holders of at least 25% in principal amount of the then outstanding Securities
of the series affected by such Default (or, in the case of a Default under
clause (4) of this Section 6.01, if outstanding Securities of other
series are affected by such Default, then at least 25% in principal amount of
the then outstanding Securities so affected) notify the Partnership, the
Guarantor, the Subsidiary Guarantors and the Trustee, of the Default, and the
Partnership, the Guarantor or the applicable Subsidiary Guarantor, as the case
may be, fails to cure the Default within 60 days after receipt of the notice. The
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”

 

SECTION 6.02                                                                    Acceleration.

 

If an Event of Default
with respect to any Securities of any series at the time outstanding (other
than an Event of Default specified in clause (5) or (6) of Section 6.01)
occurs and is continuing, the Trustee by notice to the Partnership, the
Guarantor and the Subsidiary Guarantors, or the Holders of at least 25% in
principal amount of the then outstanding Securities of the series affected by
such Event of Default (or, in the case of an Event of Default described in
clause (4) of Section 6.01, if outstanding Securities of other
series are affected by such Event of Default, then at least 25% in principal
amount of the then outstanding Securities so affected) by notice to the Partnership,
the Guarantor, the Subsidiary Guarantors and the Trustee, may declare the
principal of (or, if any such Securities are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) and all accrued and unpaid interest on all then outstanding
Securities of such series or of all series, as the case may be, to be due and
payable. Upon any such declaration, the amounts due and payable on the
Securities shall be due and payable immediately. If an Event of Default
specified in clause (5) or (6) of Section 6.01 hereof occurs,
such amounts shall ipso facto
become and be immediately due and payable without any declaration, notice or
other act on the part of the Trustee or any Holder. The Holders of a majority
in principal amount of the then outstanding Securities of the series affected
by such Event of Default or all series so affected, as the case may be, by
written notice to the Trustee may rescind an acceleration and its consequences
(other than nonpayment of principal of or premium or interest on or any
Additional Amounts with respect to the Securities) if the rescission would not
conflict with any judgment or decree and if all existing Events of Default with
respect to Securities of that series (or of all series, as the case may be)
have been cured or waived, except nonpayment of principal, premium, interest or
any Additional Amounts that has become due solely because of the acceleration.

 

31

 

SECTION
6.03                                                                    Other
Remedies.

 

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

 

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

 

SECTION
6.04                                                                    Waiver of Defaults.

 

Subject to Sections 6.07 and 9.02, the Holders of a
majority in principal amount of the then outstanding Securities of any series
or of all series affected thereby (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect
to such series or all series so affected, as the case may be, and its
consequences (including waivers obtained in connection with a tender offer or
exchange offer for Securities of such series or all series so affected or a
solicitation of consents in respect of Securities of such series or all series
so affected, provided that in each case such
offer or solicitation is made to all Holders of then outstanding Securities of
such series or all series so affected (but the terms of such offer or solicitation
may vary from series to series)), except (1) a continuing Default or Event
of Default in the payment of the principal of, or premium, if any, or interest
on or any Additional Amounts with respect to any Security or (2) a
continued Default in respect of a provision that under Section 9.02 cannot
be amended or supplemented without the consent of each Holder affected.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

SECTION
6.05                                                                    Control by Majority.

 

With respect to Securities of any series, the Holders
of a majority in principal amount of the then outstanding Securities of such
series may direct in writing the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it relating to or arising under an Event of Default
described in clause (1), (2), (3) or (8) of Section 6.01, and with
respect to all Securities, the Holders of a majority in principal amount of all
the then outstanding Securities affected may direct in writing the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on it not relating to or arising
under such an Event of Default.  However,
the Trustee may refuse to follow any direction that conflicts with applicable
law or this Indenture, that the Trustee determines may be unduly prejudicial to
the rights of other Holders, or that may involve the Trustee in personal
liability; provided, however, that the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent
with such direction.  Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification

 

32

 

satisfactory
to it in its sole discretion from Holders directing the Trustee against all
losses and expenses caused by taking or not taking such action.

 

SECTION
6.06                                                                    Limitations
on Suits.

 

Subject to Section 6.07 hereof, a Holder of a Security
of any series may pursue a remedy with respect to this Indenture or the
Securities of such series or the related Guarantees only if:

 

(1)                                  the Holder gives to the Trustee written notice of a
continuing Event of Default with respect to such series;

 

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

 

(3)                                  such Holder or Holders offer to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense;

 

(4)                                  the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of indemnity; and

 

(5)                                  during such 60-day period the Holders of a majority in
principal amount of the Securities of that series do not give the Trustee a
direction inconsistent with the request.

 

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

 

SECTION
6.07                                                                    Rights
of Holders to Receive Payment.

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security to receive payment of principal of and
premium, if any, and interest on and any Additional Amounts with respect to the
Security, on or after the respective due dates expressed in the Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

 

SECTION
6.08                                                                    Collection
Suit by Trustee.

 

If an Event of Default specified in clause (1) or (2)
of Section 6.01 hereof occurs and is continuing, the Trustee is authorized to
recover judgment in its own name and as trustee of an express trust against the
Partnership, the Guarantor or a Subsidiary Guarantor for the amount of
principal, premium (if any), interest and any Additional Amounts remaining
unpaid on the Securities of the series affected by the Event of Default, and
interest on overdue principal and premium, if any, and, to the extent lawful,
interest on overdue interest, and such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

33

 

SECTION
6.09                                                                    Trustee
May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim
and other papers or documents and to take such actions, including participating
as a member, voting or otherwise, of any committee of creditors, as may be necessary
or advisable to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Partnership, the Guarantor or a Subsidiary Guarantor or their
respective creditors or properties and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any Bankruptcy Custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee, and in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due to
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.07 out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties which the Holders of the
Securities may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

SECTION
6.10                                                                    Priorities.

 

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

 

First:  to the Trustee for amounts due under Section
7.07;

 

Second:  to
Holders for amounts due and unpaid on the Securities in respect of which or for
the benefit of which such money has been collected, for principal, premium (if
any), interest and any Additional Amounts ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal, premium (if any), interest and any Additional
Amounts, respectively; and

 

Third:  to the Partnership.

 

The Trustee, upon prior written notice to the
Partnership, may fix record dates and payment dates for any payment to Holders
pursuant to this Article VI.

 

To the fullest extent allowed under applicable law, if
for the purpose of obtaining a judgment against the Partnership, the Guarantor or
a Subsidiary Guarantor in any court it is necessary to convert the sum due in
respect of the principal of, premium (if any) or interest on or Additional
Amounts with respect to the Securities of any series (the “Required Currency”)
into a

 

34

 

currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used for purposes of rendering the judgment shall
be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the Business Day in The City of New York next preceding that on
which final judgment is given.  None of
the Partnership, the Guarantor, any Subsidiary Guarantor or the Trustee shall
be liable for any shortfall nor shall it benefit from any windfall in payments
to Holders of Securities under this Section 6.10 caused by a change in exchange
rates between the time the amount of a judgment against it is calculated as
above and the time the Trustee converts the Judgment Currency into the Required
Currency to make payments under this Section 6.10 to Holders of Securities, but
payment of such judgment shall discharge all amounts owed by the Partnership, the
Guarantor and the Subsidiary Guarantors on the claim or claims underlying such
judgment.

 

SECTION 6.11                                                                    Undertaking
for Costs.

 

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or
a suit by a Holder or Holders of more than 10% in principal amount of the then
outstanding Securities of any series.

 

ARTICLE VII

TRUSTEE

 

SECTION
7.01                                                                    Duties
of Trustee.

 

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

 

(b)                                 Except
during the continuance of an Event of Default with respect to the Securities of
any series:

 

(1)                                  the
Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(2)                                  in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture.  However, the Trustee shall examine such
certificates and opinions to determine whether, on their face, they appear to
conform to the requirements of this Indenture.

 

35

 

(c)                                  The
Trustee may not be relieved from liabilities for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(1)                                  this paragraph does not limit the effect of Section 7.01(b);

 

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

 

(3)                                  the Trustee shall not be liable with respect to any action
it takes or omits to take in good faith in accordance with a direction received
by it pursuant to Section 6.05.

 

(d)                                 Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the provisions of this
Section 7.01.

 

(e)                                  No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                    The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Partnership, the Guarantor and the
Subsidiary Guarantors.  Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.  All money
received by the Trustee shall, until applied as herein provided, be held in
trust for the payment of the principal of, premium (if any) and interest on and
Additional Amounts with respect to the Securities.

 

SECTION
7.02                                                                    Rights
of Trustee.

 

(a)                                  The
Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)                                 Before
the Trustee acts or refrains from acting, it may require instruction, an
Officers’ Certificate or an Opinion of Counsel or both to be provided.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such instruction,
Officers’ Certificate or Opinion of Counsel. 
The Trustee may consult at the Partnership’s expense with counsel of its
selection and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(c)                                  The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care.

 

(d)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers
conferred upon it by this Indenture.

 

36

 

(e)                                  Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Partnership, the Guarantor or any Subsidiary
Guarantor shall be sufficient if signed by an Officer of the General Partner.

 

(f)                                    The
Trustee shall not be charged with knowledge of any Default or Event of Default,
with respect to the Securities, unless either (1) a Responsible Officer
shall have actual knowledge of such Default or Event of Default or
(2) written notice of such Default or Event of Default shall have been
given to the Trustee by the Partnership, the Guarantor, any Subsidiary
Guarantor or by any Holder of the Securities, and such notice references the
Securities and this Indenture.

 

(g)                                 The
permissive rights of the Trustee enumerated herein shall not be construed as
duties.

 

SECTION
7.03                                                                    May
Hold Securities.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Partnership, the Guarantor, any Subsidiary Guarantor or any of their respective
Affiliates with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights and duties. 
However, the Trustee is subject to Sections 7.10 and 7.11.

 

SECTION
7.04                                                                    Trustee’s
Disclaimer.

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Partnership’s use of the proceeds from the Securities or any money paid
to the Partnership, the Guarantor or any Subsidiary Guarantor or upon the
Partnership’s, the Guarantor’s or such Subsidiary Guarantor’s direction under
any provision hereof, it shall not be responsible for the use or application of
any money received by any Paying Agent other than the Trustee and it shall not
be responsible for any statement or recital herein or any statement in the
Securities other than its certificate of authentication.

 

SECTION
7.05                                                                    Notice of Defaults.

 

If a Default or Event of Default with respect to the
Securities of any series occurs and is continuing and it is known to the
Trustee, the Trustee shall mail to Holders of Securities of such series a
notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of
Default in payment of principal of, premium (if any) and interest on and
Additional Amounts or any sinking fund installment with respect to the
Securities of such series, the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Holders of Securities of such
series.

 

37

 

SECTION
7.06                                                                    Reports
by Trustee to Holders.

 

Within 60 days after each January 15 of each year
after the execution of this Indenture, the Trustee shall mail to Holders of a
series, the Guarantor, the Subsidiary Guarantors and the Partnership a brief
report dated as of such reporting date that complies with TIA § 313(a); provided, however, that if no event described in TIA
§ 313(a) has occurred within the twelve months preceding the reporting
date with respect to a series, no report need be transmitted to Holders of such
series.  The Trustee also shall comply
with TIA § 313(b).  The Trustee
shall also transmit by mail all reports if and as required by TIA
§§ 313(c) and 313(d).

 

A copy of each report at the time of its mailing to
Holders of a series of Securities shall be filed by the Partnership, the Guarantor
or a Subsidiary Guarantor with the SEC and each securities exchange, if any, on
which the Securities of such series are listed. The Partnership shall notify
the Trustee if and when any series of Securities is listed on any securities
exchange.

 

SECTION
7.07                                                                    Compensation and Indemnity.

 

The Partnership agrees to pay to the Trustee for its
acceptance of this Indenture and services hereunder such compensation as the
Partnership and the Trustee shall from time to time agree in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The
Partnership agrees to reimburse the Trustee upon request for all reasonable
disbursements, advances and expenses incurred by it.  Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Partnership hereby indemnifies the Trustee and any
predecessor Trustee against any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee), incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, except as set forth in the next following paragraph.  The Trustee shall notify the Partnership, the
Guarantor and the Subsidiary Guarantors promptly of any claim for which it may
seek indemnity.  The Partnership shall
defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Partnership shall pay the reasonable fees and expenses of such counsel.  The Partnership need not pay for any
settlement made without its consent.

 

The Partnership shall not be obligated to reimburse
any expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee’s negligence, willful misconduct or bad faith.

 

To secure the payment obligations of the Partnership
in this Section 7.07, the Trustee shall have a lien prior to the Securities on
all money or property held or collected by the Trustee, except that held in
trust to pay principal of, premium (if any) and interest on and any Additional
Amounts with respect to Securities of any series.  Such lien and the Partnership’s obligations
under this Section 7.07 shall survive the resignation or removal of the Trustee
and the satisfaction and discharge of this Indenture.

 

38

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(5) or (6) occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

SECTION
7.08                                                                    Replacement
of Trustee.

 

A resignation or removal of the Trustee and appointment
of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign and be discharged at any time
with respect to the Securities of one or more series by so notifying the
Partnership, the Guarantor and the Subsidiary Guarantors.  The Holders of a majority in principal amount
of the then outstanding Securities of any series may remove the Trustee with
respect to the Securities of such series by so notifying the Trustee, the
Partnership, the Guarantor and the Subsidiary Guarantors.  The Partnership may remove the Trustee if:

 

(1)                                  the Trustee fails to comply with Section 7.10;

 

(2)                                  the Trustee is adjudged a bankrupt or an insolvent or an
order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

(3)                                  a Bankruptcy Custodian or public officer takes charge of the
Trustee or its property; or

 

(4)                                  the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, with respect to the Securities
of one or more series, the Partnership shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any
particular series).  Within one year
after the successor Trustee with respect to the Securities of any series takes
office, the Holders of a majority in principal amount of the Securities of such
series then outstanding may appoint a successor Trustee to replace the
successor Trustee appointed by the Partnership.

 

If a successor Trustee with respect to the Securities
of any series does not take office within 30 days after the retiring or removed
Trustee resigns or is removed, the retiring or removed Trustee (at the expense
of the Partnership), the Partnership, the Guarantor, any Subsidiary Guarantor
or the Holders of at least 10% in principal amount of the then outstanding
Securities of such series may petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

 

If the Trustee with respect to the Securities of a
series fails to comply with Section 7.10, any Holder of Securities of such
series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee with respect to the
Securities of such series.

 

39

 

In case of the appointment of a successor Trustee with
respect to all Securities, each such successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee, to the Partnership, to
the Guarantor and to the Subsidiary Guarantors. 
Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the retiring Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

 

In case of the appointment of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Partnership,
the Guarantor, the Subsidiary Guarantors, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more (but not all)
series shall execute and deliver an indenture supplemental hereto in which each
successor Trustee shall accept such appointment and that (1) shall confer to
each successor Trustee all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall confirm that all the rights,
powers and duties of the retiring Trustee with respect to the Securities of
that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one
Trustee.  Nothing herein or in such
supplemental indenture shall constitute such Trustees as co-trustees of the
same trust, and each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee.  Upon the
execution and delivery of such supplemental indenture, the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee shall have all the rights, powers and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.  On request of the Partnership or any
successor Trustee, such retiring Trustee shall transfer to such successor
Trustee all property held by such retiring Trustee as Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates.  Such retiring Trustee
shall, however, have the right to deduct its unpaid fees and expenses,
including attorneys’ fees.

 

Notwithstanding replacement of the Trustee or Trustees
pursuant to this Section 7.08, the obligations of the Partnership under
Section 7.07 shall continue for the benefit of the retiring Trustee or
Trustees.

 

SECTION
7.09                                                                    Successor
Trustee by Merger, etc.

 

Subject to Section 7.10, if the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee; provided, however,
that in the case of a transfer of all or substantially all of its corporate
trust business to another corporation, the transferee corporation expressly
assumes all of the Trustee’s liabilities hereunder.

 

40

 

In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated; and in case at that
time any of the Securities shall not have been authenticated, any successor to
the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in
all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the
Trustee shall have.

 

SECTION
7.10                                                                    Eligibility;
Disqualification.

 

There shall at all times be a Trustee hereunder which
shall be a corporation or banking association organized and doing business
under the laws of the United States, any State thereof or the District of
Columbia and authorized under such laws to exercise corporate trust power,
shall be subject to supervision or examination by federal or state (or the
District of Columbia) authority and shall have, or be a subsidiary of a bank or
bank holding company having, a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition.

 

The Indenture shall always have a Trustee who
satisfies the requirements of TIA §§ 310(a)(1),
310(a)(2) and 310(a)(5).  The Trustee is
subject to and shall comply with the provisions of TIA § 310(b) during the
period of time required by this Indenture. Nothing in this Indenture shall
prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA § 310(b).

 

SECTION 7.11                                                                    Preferential
Collection of Claims Against the Partnership, the
Guarantor or a Subsidiary Guarantor.

 

The Trustee is subject to and shall comply with the
provisions of TIA § 311(a), excluding any creditor relationship listed in
TIA § 311(b).  A Trustee who has
resigned or has been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

ARTICLE VIII

DISCHARGE OF INDENTURE

 

SECTION 8.01                                                                    Termination
of the Partnership’s, the Guarantor’s and the Subsidiary Guarantors’ Obligations.

 

(a)                                  This
Indenture shall cease to be of further effect with respect to the Securities of
a series (except that the Partnership’s obligations under Section 7.07, the
Trustee’s and Paying Agent’s obligations under Section 8.03 and the rights,
powers, protections and privileges accorded the Trustee under Article VII shall
survive), and the Trustee, on demand of the Partnership, shall execute proper
instruments acknowledging the satisfaction and discharge of this Indenture with
respect to the Securities of such series, when:

 

41

 

(1)                                  either:

 

(A)                              all
outstanding Securities of such series theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

 

(B)                                all outstanding Securities of such series not theretofore
delivered to the Trustee for cancellation:

 

(i)                                     have become due and payable, or

 

(ii)                                  will become due and payable at their Stated Maturity within
one year, or

 

(iii)                               are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Partnership,

 

and, in the case of
clause (i), (ii) or (iii) above, the Partnership, the Guarantor or a Subsidiary
Guarantor has irrevocably deposited or caused to be deposited with the Trustee
as funds (immediately available to the Holders in the case of clause (i)) in
trust for such purpose (x) cash in an amount, or (y) Government
Obligations with respect to such series, maturing as to principal and interest
at such times and in such amounts as will ensure the availability of cash in an
amount or (z) a combination thereof, which will be sufficient, in the
opinion (in the case of clauses (y) and (z)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge the entire indebtedness on the
Securities of such series for principal and interest to the date of such
deposit (in the case of Securities which have become due and payable) or for
principal, premium, if any, and interest to the Stated Maturity or Redemption
Date, as the case may be; or

 

(C)                                the
Partnership, the Guarantor and the Subsidiary Guarantors have properly
fulfilled such other means of satisfaction and discharge as is specified, as
contemplated by Section 2.01, to be applicable to the Securities of such
series;

 

(2)                                  the
Partnership, the Guarantor or a Subsidiary Guarantor has paid or caused to be
paid all other sums payable by them hereunder with respect to the Securities of
such series; and

 

(3)                                  the
Partnership has delivered to the Trustee an Officers’ Certificate stating that
all conditions precedent to satisfaction and discharge of this Indenture with
respect to the Securities of such series have been complied with, together with
an Opinion of Counsel to the same effect.

 

(b)                                 Unless
this Section 8.01(b) is specified as not being applicable to Securities of a
series as contemplated by Section 2.01, the Partnership may, at its option,

 

42

 

terminate certain of its, the
Guarantor’s and the Subsidiary Guarantors’ respective obligations under this
Indenture (“covenant defeasance”) with respect to the Securities of a series
if:

 

(1)                                  the
Partnership, the Guarantor or a Subsidiary Guarantor has irrevocably deposited
or caused to be irrevocably deposited with the Trustee as trust funds in trust
for the purpose of making the following payments, specifically pledged as
security for and dedicated solely to the benefit of the Holders of Securities
of such series, (i) money in the currency in which payment of the
Securities of such series is to be made in an amount, or (ii) Government
Obligations with respect to such series, maturing as to principal and interest
at such times and in such amounts as will ensure the availability of money in
the currency in which payment of the Securities of such series is to be made in
an amount or (iii) a combination thereof, that is sufficient, in the opinion
(in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay the principal of and premium (if any) and
interest on all Securities of such series on each date that such principal,
premium (if any) or interest is due and payable and (at the Stated Maturity
thereof or upon redemption as provided in Section 8.01(e)) to pay all other
sums payable by it hereunder; provided that
the Trustee shall have been irrevocably instructed to apply such money and/or
the proceeds of such Government Obligations to the payment of said principal,
premium (if any) and interest with respect to the Securities of such series as
the same shall become due;

 

(2)                                  the
Partnership has delivered to the Trustee an Officers’ Certificate stating that
all conditions precedent to satisfaction and discharge of this Indenture with
respect to the Securities of such series have been complied with, and an
Opinion of Counsel to the same effect;

 

(3)                                  no Default or Event of Default with respect to the
Securities of such series shall have occurred and be continuing on the date of
such deposit;

 

(4)                                  the Partnership shall have delivered to the Trustee an
Opinion of Counsel from a nationally recognized counsel acceptable to the
Trustee or a private letter ruling issued by the United States Internal Revenue
Service to the effect that the Holders will not recognize income, gain or loss
for United States. Federal income tax purposes as a result of the Partnership’s
exercise of its option under this Section 8.01(b) and will be subject to United
States Federal income tax on the same amount and in the same manner and at the
same times as would have been the case if such option had not been exercised;

 

(5)                                  the
Partnership, the Guarantor and the Subsidiary Guarantors have complied with any
additional conditions specified pursuant to Section 2.01 to be applicable to
the discharge of Securities of such series pursuant to this Section 8.01; and

 

(6)                                  such deposit and discharge shall not cause the Trustee to
have a conflicting interest as defined in TIA § 310(b).

 

In such event, this Indenture shall cease to be of
further effect (except as set forth in this paragraph), and the Trustee, on
demand of the Partnership, shall execute proper

 

43

 

instruments
acknowledging satisfaction and discharge under this Indenture.  However, the Partnership’s, the Guarantor’s and
the Subsidiary Guarantors’ respective obligations in Sections 2.05, 2.06, 2.07,
2.08, 2.09, 4.01, 4.02, 7.07, 7.08, 8.04 and 11.01, the Trustee’s and Paying
Agent’s obligations in Section 8.03 and the rights, powers, protections
and privileges accorded the Trustee under Article VII shall survive until all
Securities of such series are no longer outstanding.  Thereafter, only the Partnership’s
obligations in Section 7.07 and the Trustee’s and Paying Agent’s obligations in
Section 8.03 shall survive with respect to Securities of such series.

 

After such irrevocable deposit made pursuant to this
Section 8.01(b) and satisfaction of the other conditions set forth herein, the
Trustee upon request shall acknowledge in writing the discharge of the
Partnership’s, the Guarantor’s and the Subsidiary Guarantors’ obligations under
this Indenture with respect to the Securities of such series except for those
surviving obligations specified above.

 

In order to have money available on a payment date to
pay principal of or premium (if any) or interest on the Securities, the
Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary
money.  Government Obligations shall not
be callable at the issuer’s option.

 

(c)                                  If
the Partnership, the Guarantor and the Subsidiary Guarantors have previously
complied or are concurrently complying with Section 8.01(b) (other than any
additional conditions specified pursuant to Section 2.01 that are
expressly applicable only to covenant defeasance) with respect to Securities of
a series, then, unless this Section 8.01(c) is specified as not being
applicable to Securities of such series as contemplated by Section 2.01, the
Partnership may elect that its, the Guarantor’s and the Subsidiary Guarantors’ respective
obligations to make payments with respect to Securities of such series be
discharged (“legal defeasance”), if:

 

(1)                                  no
Default or Event of Default under clauses (5) and (6) of Section 6.01 hereof
shall have occurred at any time during the period ending on the 91st day after
the date of deposit contemplated by Section 8.01(b) (it being understood that
this condition shall not be deemed satisfied until the expiration of such
period);

 

(2)                                  unless
otherwise specified with respect to Securities of such series as contemplated
by Section 2.01, the Partnership has delivered to the Trustee an Opinion of
Counsel from a nationally recognized counsel acceptable to the Trustee to the
effect referred to in Section 8.01(b)(4) with respect to such legal defeasance,
which opinion is based on (i) a private letter ruling issued by the United
States Internal Revenue Service addressed to the Partnership, (ii) a published
ruling of the Internal Revenue Service pertaining to a comparable form of
transaction or (iii) a change in the applicable federal income tax law
(including regulations) after the date of this Indenture;

 

(3)                                  the
Partnership, the Guarantor and the Subsidiary Guarantors have complied with any
other conditions specified pursuant to Section 2.01 to be applicable to the
legal defeasance of Securities of such series pursuant to this Section 8.01(c);
and

 

44

 

(4)                                  the
Partnership has delivered to the Trustee a Partnership Request requesting such
legal defeasance of the Securities of such series and an Officers’ Certificate
stating that all conditions precedent with respect to such legal defeasance of
the Securities of such series have been complied with, together with an Opinion
of Counsel to the same effect.

 

In such event, the Partnership, the Guarantor and the
Subsidiary Guarantors will be discharged from their respective obligations
under this Indenture and the Securities of such series to pay principal of,
premium (if any) and interest on, and any Additional Amounts with respect to,
Securities of such series, the Partnership’s, the Guarantor’s and the
Subsidiary Guarantors’ obligations under Sections 4.01, 4.02 and 11.01 shall
terminate with respect to such Securities, and the entire indebtedness of the
Partnership evidenced by such Securities and of the Guarantor and of the
Subsidiary Guarantors evidenced by the related Guarantees shall be deemed paid
and discharged.

 

(d)                                 If
and to the extent additional or alternative means of satisfaction, discharge or
defeasance of Securities of a series are specified to be applicable to such
series as contemplated by Section 2.01, each of the Partnership, the Guarantor and
the Subsidiary Guarantors may terminate any or all of its obligations under
this Indenture with respect to Securities of a series and any or all of its
obligations under the Securities of such series if it fulfills such other means
of satisfaction and discharge as may be so specified, as contemplated by
Section 2.01, to be applicable to the Securities of such series.

 

(e)                                  If
Securities of any series subject to subsection (a), (b), (c) or (d) of this
Section 8.01 are to be redeemed prior to their Stated Maturity, whether
pursuant to any optional redemption provisions or in accordance with any
mandatory or optional sinking fund provisions, the terms of the applicable
trust arrangement shall provide for such redemption, and the Partnership shall
make such arrangements as are reasonably satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense,
of the Partnership.

 

SECTION
8.02                                                                    Application
of Trust Money.

 

The Trustee or a trustee satisfactory to the Trustee
and the Partnership shall hold in trust money or Government Obligations
deposited with it pursuant to Section 8.01 hereof.  It shall apply the deposited money and the
money from Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of the
series with respect to which the deposit was made.

 

SECTION
8.03                                                                    Repayment to Partnership, Guarantor or Subsidiary Guarantor.

 

The Trustee and the Paying Agent shall promptly pay to
the Partnership, the Guarantor or any Subsidiary Guarantor any excess money or
Government Obligations (or proceeds therefrom) held by them at any time upon
the written request of the Partnership.

 

Subject to the requirements of any applicable
abandoned property laws, the Trustee and the Paying Agent shall pay to the
Partnership upon written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that

 

45

 

remain
unclaimed for two years after the date upon which such payment shall have
become due.  After payment to the
Partnership, Holders entitled to the money must look to the Partnership for
payment as general creditors unless an applicable abandoned property law designates
another Person, and all liability of the Trustee and the Paying Agent with
respect to such money shall cease.

 

SECTION
8.04                                                                    Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply
any money or Government Obligations deposited with respect to Securities of any
series in accordance with Section 8.01 by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the
obligations of the Partnership, the Guarantor and the Subsidiary Guarantors under
this Indenture with respect to the Securities of such series and under the
Securities of such series shall be revived and reinstated as though no deposit
had occurred pursuant to Section 8.01 until such time as the Trustee or
the Paying Agent is permitted to apply all such money or Government Obligations
in accordance with Section 8.01; provided, however, that
if the Partnership, the Guarantor or any Subsidiary Guarantor has made any
payment of principal of, premium (if any) or interest on or any Additional
Amounts with respect to any Securities because of the reinstatement of its
obligations, the Partnership, the Guarantor or such Subsidiary Guarantor, as
the case may be, shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the money or Government Obligations
held by the Trustee or the Paying Agent.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS

 

SECTION
9.01                                                                    Without Consent of Holders.

 

The Partnership, the Guarantor, the Subsidiary
Guarantors and the Trustee may amend or supplement this Indenture or the
Securities or waive any provision hereof or thereof without the consent of any
Holder:

 

(1)                                  to
cure any ambiguity, omission, defect or inconsistency;

 

(2)                                  to
comply with Section 5.01;

 

(3)                                  to
provide for uncertificated Securities in addition to or in place of
certificated Securities, or to provide for the issuance of bearer Securities
(with or without coupons);

 

(4)                                  to
provide any security for, or to add any guarantees of or additional obligors
on, any series of Securities or the related Guarantees;

 

(5)                                  to
comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

 

46

 

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

 

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

 

(8)                                  to
change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become
effective only when there is no outstanding Security of any series created
prior to the execution of such amendment or supplemental indenture that is
adversely affected in any material respect by such change in or elimination of
such provision;

 

(9)                                  to
establish the form or terms of Securities of any series as permitted by Section
2.01;

 

(10)                            to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of
Securities pursuant to Section 8.01; provided, however,
that any such action shall not adversely affect the interest of the Holders of
Securities of such series or any other series of Securities in any material
respect; or

 

(11)                            to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 7.08.

 

Upon the request of the Partnership, accompanied by a
Board Resolution, and upon receipt by the Trustee of the documents described in
Section 9.06, the Trustee shall, subject to Section 9.06, join with the
Partnership, the Guarantor and the Subsidiary Guarantors in the execution of
any supplemental indenture authorized or permitted by the terms of this
Indenture and make any further appropriate agreements and stipulations that may
be therein contained.

 

SECTION
9.02                                                                    With Consent of Holders.

 

Except as provided below in this Section 9.02, the
Partnership, the Guarantor, the Subsidiary Guarantors and the Trustee may amend
or supplement this Indenture with the written consent (including consents
obtained in connection with a tender offer or exchange offer for Securities of
any one or more series or all series or a solicitation of consents in respect
of Securities of any one or more series or all series, provided
that in each case such offer or solicitation is made to all Holders of then
outstanding Securities of each such series (but the terms of such offer or
solicitation may vary from series to series)) of the Holders of at least a

 

47

 

majority
in principal amount of the then outstanding Securities of all series affected
by such amendment or supplement (acting as one class).

 

Upon the request of the Partnership, accompanied by a
Board Resolution, and upon the filing with the Trustee of evidence of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Partnership, the Guarantor and the Subsidiary Guarantors in the
execution of such amendment or supplemental indenture.

 

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any proposed
amendment, supplement or waiver, but it shall be sufficient if such consent
approves the substance thereof.

 

The Holders of a majority in principal amount of the
then outstanding Securities of one or more series or of all series (acting as
one class) may waive compliance in a particular instance by the Partnership, the
Guarantor or any Subsidiary Guarantor with any provision of this Indenture with
respect to Securities of such series (including waivers obtained in connection
with a tender offer or exchange offer for Securities of such series or a
solicitation of consents in respect of Securities of such series, provided that in each case such offer or solicitation is
made to all Holders of then outstanding Securities of such series (but the
terms of such offer or solicitation may vary from series to series)).

 

However, without the consent of each Holder affected,
an amendment, supplement or waiver under this Section 9.02 may not:

 

(1)                                  reduce
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver;

 

(2)                                  reduce the rate of or change the time for payment of
interest, including default interest, on any Security;

 

(3)                                  reduce the principal of, any premium on or any mandatory
sinking fund payment with respect to, or change the Stated Maturity of, any
Security or reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 6.02;

 

(4)                                  reduce the premium, if any, payable upon the redemption of
any Security or change the time at which any Security may or shall be redeemed;

 

(5)                                  change
any obligation of the Partnership, the Guarantor or any Subsidiary Guarantor to
pay Additional Amounts with respect to any Security;

 

(6)                                  change the coin or currency or currencies (including
composite currencies) in which any Security or any premium, interest or
Additional Amounts with respect thereto are payable;

 

48

 

(7)                                  impair
the right to institute suit for the enforcement of any payment of principal of,
premium (if any) or interest on or any Additional Amounts with respect to any
Security pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

 

(8)                                  make
any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to
Section 6.04 or 6.07 or make any change in this sentence of Section 9.02;

 

(9)                                  modify
the provisions of this Indenture with respect to the subordination of any
Security and any related Guarantee in a manner materially adverse to the Holder
thereof;

 

(10)                            waive
a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the
Securities; or

 

(11)                            except as provided in Section 11.04, release the Guarantor or
any Subsidiary Guarantor or modify the related Guarantees in any manner materially
adverse to the Holders.

 

An amendment under this Section 9.02 may not make any change
that adversely affects the rights under Article X of any holder of an issue of
Senior Indebtedness unless the holders of the issue pursuant to its terms
consent to the change.

 

A supplemental indenture that changes or eliminates
any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of Securities,
or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series.

 

The right of any Holder to participate in any consent
required or sought pursuant to any provision of this Indenture (and the
obligation of the Partnership, the Guarantor or any Subsidiary Guarantor to
obtain any such consent otherwise required from such Holder) may be subject to
the requirement that such Holder shall have been the Holder of record of any
Securities with respect to which such consent is required or sought as of a
date identified by the Partnership, the Guarantor or such Subsidiary Guarantor in
a notice furnished to Holders in accordance with the terms of this Indenture.

 

After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Partnership shall mail to the Holders of
each Security affected thereby a notice briefly describing the amendment,
supplement or waiver.  Any failure of the
Partnership to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amendment, supplement or
waiver.

 

SECTION
9.03                                                                    Compliance
with the Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the
Securities shall comply in form and substance with the TIA as then in effect.

 

49

 

SECTION
9.04                                                                    Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security, even
if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder
may revoke the consent as to his or her Security or portion of a Security if
the Trustee receives written notice of revocation before a date and time
therefor identified by the Partnership, the Guarantor or any Subsidiary
Guarantor in a notice furnished to such Holder in accordance with the terms of
this Indenture or, if no such date and time shall be identified, the date the
amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

 

The Partnership, the Guarantor or any Subsidiary
Guarantor may, but shall not be obligated to, fix a record date (which need not
comply with TIA § 316(c)) for the purpose of determining the Holders
entitled to consent to any amendment, supplement or waiver or to take any other
action under this Indenture.  If a record
date is fixed, then notwithstanding the provisions of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously given,
whether or not such Persons continue to be Holders after such record date.  No consent shall be valid or effective for
more than 90 days after such record date unless consents from Holders of the
principal amount of Securities required hereunder for such amendment or waiver
to be effective shall have also been given and not revoked within such 90-day
period.

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it is of the type described in
any of clauses (1) through (9) of Section 9.02 hereof.  In such case, the amendment, supplement or
waiver shall bind each Holder who has consented to it and every subsequent
Holder that evidences the same debt as the consenting Holder’s Security.

 

SECTION
9.05                                                                    Notation on or Exchange of Securities.

 

If an amendment or supplement changes the terms of an
outstanding Security, the Partnership may require the Holder of the Security to
deliver it to the Trustee.  The Trustee
may place an appropriate notation on the Security at the request of the
Partnership regarding the changed terms and return it to the Holder.  Alternatively, if the
Partnership so determines, the Partnership in exchange for the Security shall
issue and the Trustee shall authenticate a new Security that reflects the
changed terms.  Failure to make
the appropriate notation or to issue a new Security shall not affect the
validity of such amendment or supplement.

 

Securities of any series authenticated and delivered
after the execution of any amendment or supplement may,
and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such amendment or supplement.

 

SECTION
9.06                                                                    Trustee to Sign Amendments, etc.

 

The Trustee shall sign any amendment or supplement
authorized pursuant to this Article if the amendment or supplement does not
adversely affect the rights, duties, liabilities or

 

50

 

immunities
of the Trustee.  If it does, the Trustee
may, but need not, sign it.  In signing
or refusing to sign such amendment or supplement, the Trustee shall be entitled
to receive, in addition to the documents required by Section 12.04, and,
subject to Section 7.01 hereof, shall be fully protected in relying upon, an
Opinion of Counsel provided at the expense of the Partnership, the Guarantor or
a Subsidiary Guarantor to the effect that such amendment or supplement is
authorized or permitted by this Indenture.

 

ARTICLE X

SUBORDINATION OF SECURITIES AND GUARANTEE

 

SECTION
10.01                                                              Applicability
of Article; Agreement to Subordinate.

 

The provisions of this Article X shall only be
applicable to the Securities of any series (Securities of such series referred
to in this Article X as “Subordinated Securities”) designated, pursuant to
Section 2.01, as subordinated to Senior Indebtedness and any related Guarantees
of such Subordinated Securities. Each Holder by accepting a Subordinated
Security agrees that the Debt evidenced by such Subordinated Security and any
related Guarantees of such Subordinated Security is subordinated in right of
payment, to the extent and in the manner provided in this Article X, to the
prior payment of all Senior Indebtedness and that the subordination is for the
benefit of and enforceable by the holders of Senior Indebtedness. All
provisions of this Article X shall be subject to Section 10.12.

 

SECTION
10.02                                                              Liquidation, Dissolution,
Bankruptcy.

 

Upon any payment or distribution of the assets of the
Partnership, the Guarantor or the Subsidiary Guarantors, as the case may be, to
creditors, upon a liquidation or a dissolution of the Partnership, the
Guarantor or the Subsidiary Guarantors, as the case may be, or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Partnership, the Guarantor or the Subsidiary Guarantors, as the case may be, or
their respective property:

 

(a)                                  holders
of Senior Indebtedness of the Partnership, the Guarantor or any Subsidiary
Guarantor, as the case may be, shall be entitled to receive payment in full in
cash of such Senior Indebtedness of such Person (including interest (if any),
accruing on or after the commencement of a proceeding in bankruptcy, whether or
not allowed as a claim against the Partnership, the Guarantor or the Subsidiary
Guarantors, as the case may be, in such bankruptcy proceeding) before Holders
of Subordinated Securities and the related Guarantees shall be entitled to
receive any payment of principal of, or premium, if any, or interest on, the
Subordinated Securities from the Partnership, or any payment in respect of such
related Guarantees from the Guarantor or the Subsidiary Guarantors; and

 

(b)                                 until
the Senior Indebtedness of the Partnership, the Guarantor or any Subsidiary
Guarantor, as the case may be, is paid in full, any distribution to which
Holders of Subordinated Securities and any related Guarantees would be entitled
but for this Article X shall be made to holders of Senior Indebtedness of the
Partnership, the Guarantor or the Subsidiary Guarantors, as the case may be, as
their interests may appear, except that such Holders may receive capital stock
and any debt securities that are subordinated to Senior Indebtedness of the

 

51

 

Partnership, the Guarantor or the Subsidiary Guarantors, as the case
may be, to at least the same extent as the Subordinated Securities of the
Partnership or the related Guarantee of the Guarantor or any Subsidiary
Guarantor, respectively.

 

SECTION
10.03                                                              Default on Senior Indebtedness.

 

The Partnership, the Guarantor and the Subsidiary
Guarantors may not pay the principal of, or premium, if any, or interest on,
the Subordinated Securities or any related Guarantee or make any deposit
pursuant to Article VIII and may not repurchase, redeem or otherwise retire
(except, in the case of Subordinated Securities that provide for a mandatory
sinking fund pursuant to Section 3.11, by the delivery of Subordinated
Securities by the Partnership to the Trustee pursuant to the first paragraph of
Section 3.11) any Subordinated Securities (collectively, “pay the Subordinated
Securities”) if any principal, premium or interest in respect of Senior
Indebtedness of such Person is not paid within any applicable grace period
(including at maturity) or any other default on Senior Indebtedness of such
Person occurs and the maturity of such Senior Indebtedness is accelerated in
accordance with its terms unless, in either case, the default has been cured or
waived and any such acceleration has been rescinded or such Senior Indebtedness
has been paid in full in cash; provided, however,
that the Partnership, the Guarantor and the Subsidiary Guarantors may make
payments on the Subordinated Securities or any related Guarantee without regard
to the foregoing if the Partnership and the Trustee receive written notice
approving such payment from the Representative of each issue of Designated
Senior Indebtedness. During the continuance of any other default with respect
to any Designated Senior Indebtedness pursuant to which the maturity thereof
may be accelerated immediately without further notice (except such notice as
may be required to effect such acceleration) or the expiration of any
applicable grace periods, the Partnership, the Guarantor and the Subsidiary
Guarantors may not make payments on the Subordinated Securities or any related
Guarantee for a period (a “Payment Blockage Period”) commencing upon the receipt
by the Partnership and the Trustee (and if such Designated Senior Indebtedness
is Debt of the Guarantor or a Subsidiary Guarantor, the Guarantor or the
Subsidiary Guarantor) of written notice of such default from the Representative
of any Designated Senior Indebtedness specifying an election to effect a
Payment Blockage Period (a “Blockage Notice”) and ending 179 days thereafter
(or earlier if such Payment Blockage Period is terminated by written notice to
the Trustee and the Partnership (and if such Designated Senior Indebtedness is
Debt of a Subsidiary Guarantor, the Subsidiary Guarantor) from the Person or
Persons who gave such Blockage Notice, by repayment in full in cash of such
Designated Senior Indebtedness or because the default giving rise to such
Blockage Notice is no longer continuing). Notwithstanding the provisions
described in the immediately preceding sentence (but subject to the provisions
contained in Section 10.02 and the first sentence of this Section 10.03),
unless the holders of such Designated Senior Indebtedness or the Representative
of such holders shall have accelerated the maturity of such Designated Senior
Indebtedness, the Partnership, the Guarantor and the Subsidiary Guarantors may
resume payments on the Subordinated Securities and any related Guarantee after
such Payment Blockage Period. Not more than one Blockage Notice may be given in
any consecutive 360-day period, irrespective of the number of defaults with
respect to any number of issues of Designated Senior Indebtedness during such
period, unless otherwise specified pursuant to Section 2.01 for the
Subordinated Securities of a series; provided, however,
that in no event may the total number of days during which any Payment Blockage
Period or Periods is in effect exceed 179 days in the aggregate during any 360
consecutive day period. For purposes of this Section 10.03, no default

 

52

 

or event of default which existed or was continuing on
the date of the commencement of any Payment Blockage Period with respect to the
Designated Senior Indebtedness initiating such Payment Blockage Period shall
be, or be made, the basis of the commencement of a subsequent Payment Blockage
Period by the Representative of such Designated Senior Indebtedness, whether or
not within a period of 360 consecutive days, unless such default or event of
default shall have been cured or waived for a period of not less than 90
consecutive days.

 

SECTION
10.04                                                              Acceleration
of Payment of Securities.

 

If payment of the Subordinated Securities is
accelerated because of an Event of Default, the Partnership shall promptly
notify the holders of the Designated Senior Indebtedness (or their
Representatives) of the acceleration.

 

SECTION
10.05                                                              When
Distribution Must Be Paid Over.

 

If a distribution is made to Holders of Subordinated
Securities or any related Guarantee that because of this Article X should not
have been made to them, the Holders who receive such distribution shall hold it
in trust for holders of Senior Indebtedness and pay it over to them as their
interests may appear.

 

SECTION
10.06                                                              Subrogation.

 

After all Senior Indebtedness is paid in full and
until the Subordinated Securities are paid in full, Holders thereof shall be
subrogated to the rights of holders of Senior Indebtedness to receive
distributions applicable to Senior Indebtedness. A distribution made under this
Article X to holders of Senior Indebtedness which otherwise would have been
made to Holders of Subordinated Securities is not, as between the Partnership,
the Guarantor or the Subsidiary Guarantors, as the case may be, and such
Holders, a payment by the Partnership, the Guarantor or the Subsidiary
Guarantors, as the case may be, on Senior Indebtedness.

 

SECTION
10.07                                                              Relative
Rights.

 

This Article X defines the relative rights of Holders
of Subordinated Securities and holders of Senior Indebtedness. Nothing in this
Indenture shall:

 

(a)                                  impair,
as between the Partnership, the Guarantor or the Subsidiary Guarantors, as the
case may be, and Holders of either Subordinated Securities or Securities, the
obligation of the Partnership, the Guarantor or the Subsidiary Guarantors, as
the case may be, which is absolute and unconditional, to pay principal of, and
premium, if any, and interest on, the Subordinated Securities and the
Securities in accordance with their terms; or

 

(b)                                 prevent the Trustee or any Holder of either Subordinated
Securities or Securities from exercising its available remedies upon an Event
of Default, subject to the rights of holders of Senior Indebtedness to receive
distributions otherwise payable to Holders of Subordinated Securities.

 

53

 

SECTION
10.08                                                              Subordination May Not Be
Impaired by Partnership.

 

No right of any holder of Senior Indebtedness to
enforce the subordination of the Debt evidenced by the Subordinated Securities
and any related Guarantee shall be impaired by any act or failure to act by the
Partnership, the Guarantor or the Subsidiary Guarantors or by its or their failure
to comply with this Indenture.

 

SECTION
10.09                                                              Rights
of Trustee and Paying Agent.

 

Notwithstanding Sections 10.02 and 10.03, the Trustee
or any Paying Agent may continue to make payments on Subordinated Securities
and shall not be charged with knowledge of the existence of facts that would
prohibit the making of any such payments unless, not less than two Business
Days prior to the date of such payment, a Responsible Officer of the Trustee
receives notice satisfactory to it that payments may not be made under this
Article X. The Partnership, the Registrar, any Paying Agent, a Representative
or a holder of Senior Indebtedness may give the notice; provided,
however, that, if an issue of Senior Indebtedness has a
Representative, only the Representative may give the notice on behalf of the holders
of the Senior Indebtedness of that issue.

 

The Trustee in its individual or any other capacity
may hold Senior Indebtedness with the same rights it would have if it were not the
Trustee. The Registrar and any Paying Agent may do the same with like rights.
The Trustee shall be entitled to all of the rights set forth in this Article X
with respect to any Senior Indebtedness which may at any time be held by it, to
the same extent as any other holder of Senior Indebtedness; and nothing in
Article VII shall deprive the Trustee of any of its rights as such holder.
Nothing in this Article X shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 7.07.

 

SECTION
10.10                                                              Distribution or Notice to Representative.

 

Whenever a distribution is to be made or a notice
given to holders of Senior Indebtedness, the distribution may be made and the
notice given to their Representative (if any).

 

SECTION
10.11                                                              Article X Not to Prevent Defaults or Limit Right to Accelerate.

 

The failure to make a payment pursuant to the
Subordinated Securities, whether directly or pursuant to the related Guarantees,
by reason of any provision in this Article X shall not be construed as
preventing the occurrence of a Default or Event of Default. Nothing in this
Article X shall have any effect on the right of the Holders or the Trustee to
accelerate the maturity of either the Subordinated Securities or the
Securities, as the case may be.

 

SECTION
10.12                                                              Trust
Moneys Not Subordinated.

 

Notwithstanding anything contained herein to the
contrary, payments from money or the proceeds of U.S. Government Obligations
held in trust under Article VIII by the Trustee for the payment of principal
of, and premium, if any, and interest on, the Subordinated Securities or the
Securities shall not be subordinated to the prior payment of any Senior
Indebtedness or subject to the restrictions set forth in this Article X, and
none of the Holders thereof shall be obligated to pay over any such amount to
the Partnership, the Guarantor, the Subsidiary

 

54

 

Guarantors or any holder of Senior Indebtedness or any
other creditor of the Partnership, the Guarantor or the Subsidiary Guarantors.

 

SECTION
10.13                                                              Trustee Entitled to Rely.

 

Upon any payment or distribution pursuant to this
Article X, the Trustee and the Holders shall be entitled to rely upon any order
or decree of a court of competent jurisdiction in which any proceedings of the
nature referred to in Section 10.02 are pending, upon a certificate of the
liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to such Holders or upon the Representatives for
the holders of Senior Indebtedness for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Senior Indebtedness and other Debt of the Partnership, the Guarantor or the
Subsidiary Guarantors, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to
this Article X. In the event that the Trustee determines, in good faith, that
evidence is required with respect to the right of any Person as a holder of
Senior Indebtedness to participate in any payment or distribution pursuant to
this Article X, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and other facts pertinent to the rights of such
Person under this Article X, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment. The provisions of Sections
7.01 and 7.02 shall be applicable to all actions or omissions of actions by the
Trustee pursuant to this Article X.

 

SECTION
10.14                                                              Trustee to Effectuate Subordination.

 

Each Holder by accepting a Subordinated Security and
any related Guarantee authorizes and directs the Trustee on his behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders of Subordinated Securities and the holders of
Senior Indebtedness as provided in this Article X and appoints the Trustee as
attorney-in-fact for any and all such purposes.

 

SECTION
10.15                                                              Trustee
Not Fiduciary for Holders of Senior Indebtedness.

 

The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness and shall not be liable to any such
holders if it shall mistakenly pay over or distribute to Holders of
Subordinated Securities or the Partnership, the Guarantor or the Subsidiary
Guarantors or any other Person, money or assets to which any holders of Senior
Indebtedness shall be entitled by virtue of this Article X or otherwise.

 

SECTION
10.16                                                              Reliance
by Holders of Senior Indebtedness on Subordination Provisions.

 

Each Holder by accepting a Subordinated Security and
any related Guarantee acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, an inducement and a consideration to
each holder of any Senior Indebtedness, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Subordinated
Securities, to acquire and continue to hold, or to continue to hold, such
Senior Indebtedness and such holder of Senior Indebtedness shall be deemed
conclusively to have relied on such

 

55

 

subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness.

 

ARTICLE XI

GUARANTEE

 

SECTION
11.01                                                              Guarantee.

 

(a)                                  Notwithstanding
any provision of this Article XI to the contrary, the provisions of this
Article XI relating to the Subsidiary Guarantors shall be applicable only to,
and inure solely to the benefit of, the Securities of any series designated,
pursuant to Section 2.01, as entitled to the benefits of the related Guarantee
of each of the Subsidiary Guarantors.

 

(b)                                 For
value received, the Guarantor and each of the Subsidiary Guarantors hereby
fully, unconditionally and absolutely guarantees (the “Guarantee”) to the
Holders and to the Trustee the due and punctual payment of the principal of,
and premium, if any, and interest on the Securities and all other amounts due
and payable under this Indenture and the Securities by the Partnership, when
and as such principal, premium, if any, and interest shall become due and
payable, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise, according to the terms of the Securities and this
Indenture, subject to the limitations set forth in Section 11.03 and the
subordination provisions contained in Article X.

 

(c)                                  Failing
payment when due of any amount guaranteed pursuant to the related Guarantee,
for whatever reason, the Guarantor and each of the Subsidiary Guarantors will
be jointly and severally obligated to pay the same immediately, subject to the
subordination provisions contained in Article X.  Each of the Guarantees hereunder is intended
to be a general, unsecured obligation of the Guarantor and the related Subsidiary
Guarantor and will be subordinated in right of payment to all unsecured and
unsubordinated Debt of the Guarantor and such Subsidiary Guarantor.  The Guarantor and each of the Subsidiary
Guarantors hereby agrees that its obligations hereunder shall be full,
unconditional and absolute, irrespective of the validity, regularity or
enforceability of the Securities, its Guarantee, the Guarantee of the Guarantor
and any other Subsidiary Guarantor or this Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Partnership, the Guarantor or any Subsidiary Guarantor, or any
action to enforce the same or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of the Guarantor or the
Subsidiary Guarantors.  The Guarantor and
each of the Subsidiary Guarantors hereby agrees that in the event of a default
in payment of the principal of, or premium, if any, or interest on the
Securities of such series, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise, legal proceedings may be
instituted by the Trustee on behalf of the Holders or, subject to Section 6.06,
by the Holders, on the terms and conditions set forth in this Indenture,

 

56

 

directly against the Guarantor and
such Subsidiary Guarantor to enforce such Guarantee without first proceeding
against the Partnership or any other Subsidiary Guarantor.

 

(d)                                 The
obligations of the Guarantor and each of the Subsidiary Guarantors under this
Article XI shall be as aforesaid full, unconditional and absolute and shall not
be impaired, modified, released or limited by any occurrence or condition
whatsoever, including, without limitation, (i) any compromise, settlement,
release, waiver, renewal, extension, indulgence or modification of, or any
change in, any of the obligations and liabilities of the Partnership, the
Guarantor or any of the Subsidiary Guarantors contained in the Securities or
this Indenture, (ii) any impairment, modification, release or limitation of the
liability of the Partnership, the Guarantor, any of the Subsidiary Guarantors or
any of their estates in bankruptcy, or any remedy for the enforcement thereof,
resulting from the operation of any present or future provision of any
applicable Bankruptcy Law, as amended, or other statute or from the decision of
any court, (iii) the assertion or exercise by the Partnership, the Guarantor,
any of the Subsidiary Guarantors or the Trustee of any rights or remedies under
the Securities or this Indenture or their delay in or failure to assert or
exercise any such rights or remedies, (iv) the assignment or the purported
assignment of any property as security for the Securities, including all or any
part of the rights of the Partnership, the Guarantor or any of the Subsidiary
Guarantors under this Indenture, (v) the extension of the time for payment by
the Partnership, the Guarantor or any of the Subsidiary Guarantors of any
payments or other sums or any part thereof owing or payable under any of the
terms and provisions of the Securities or this Indenture or of the time for
performance by the Partnership, the Guarantor or any of the Subsidiary
Guarantors of any other obligations under or arising out of any such terms and
provisions or the extension or the renewal of any thereof, (vi) the
modification or amendment (whether material or otherwise) of any duty,
agreement or obligation of the Partnership, the Guarantor or any of the
Subsidiary Guarantors set forth in this Indenture, (vii) the voluntary or
involuntary liquidation, dissolution, sale or other disposition of all or
substantially all of the assets, marshaling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of, or other similar
proceeding affecting, the Partnership, the Guarantor or any of the Subsidiary
Guarantors or any of their respective assets, or the disaffirmance of the
Securities, the Guarantee or this Indenture in any such proceeding, (viii) the
release or discharge of the Partnership, the Guarantor or any of the Subsidiary
Guarantors from the performance or observance of any agreement, covenant, term
or condition contained in any of such instruments by operation of law, (ix) the
unenforceability of the Securities of such series, the related Guarantees or
this Indenture or (x) any other circumstances (other than payment in full or
discharge of all amounts guaranteed pursuant to the related Guarantees) which
might otherwise constitute a legal or equitable discharge of a surety or
guarantor.

 

(e)                                  The
Guarantor and each of the Subsidiary Guarantors hereby (i) waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
the merger, insolvency or bankruptcy of the Partnership, the Guarantor or any
of the Subsidiary Guarantors and all demands whatsoever, (ii) acknowledges that
any agreement, instrument or document evidencing its Guarantee may be
transferred and that the benefit of its obligations hereunder shall extend to
each holder of any agreement, instrument or document evidencing its Guarantee
without notice to it and (iii) covenants that its Guarantee will not be
discharged except by complete performance of such Guarantee.  The Guarantor and each of the Subsidiary

 

57

 

Guarantors further agrees that if at any time all or any part of any
payment theretofore applied by any Person to its Guarantee is, or must be,
rescinded or returned for any reason whatsoever, including, without limitation,
the insolvency, bankruptcy or reorganization of the Partnership, the Guarantor
or any of the Subsidiary Guarantors, such Guarantee shall, to the extent that
such payment is or must be rescinded or returned, be deemed to have continued
in existence notwithstanding such application, and such Guarantee shall
continue to be effective or be reinstated, as the case may be, as though such
application had not been made.

 

(f)                                    The
Guarantor and each of the Subsidiary Guarantors shall be subrogated to all
rights of the Holders and the Trustee against the Partnership in respect of any
amounts paid by the Guarantor or such Subsidiary Guarantor pursuant to the
provisions of this Indenture; provided, however,
that the Guarantor or such Subsidiary Guarantor shall not be entitled to
enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Securities of such series and the related
Guarantees shall have been paid in full or discharged.

 

SECTION
11.02                                                              Execution and Delivery of Guarantees.

 

To further evidence its Guarantee set forth in Section
11.01, the Guarantor and each of the Subsidiary Guarantors hereby agrees that a
notation relating to such Guarantee, substantially in the form attached hereto
as Annex A, shall be endorsed on each Security of the series entitled to the
benefits of such Guarantee authenticated and delivered by the Trustee, which
notation of Guarantee shall be executed by either manual or facsimile signature
of an Officer of K-Sea General Partner GP LLC or such Subsidiary Guarantor. The
Guarantor and each of the Subsidiary Guarantors hereby agrees that its Guarantee
set forth in Section 11.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation relating to such
Guarantee. If any Officer of the Guarantor or such Subsidiary Guarantor, whose
signature is on this Indenture or a notation of Guarantee no longer holds that
office at the time the Trustee authenticates such Security or at any time
thereafter, the Guarantee of such Security shall be valid nevertheless. The
delivery of any Security of a series entitled to the benefits of a Guarantee
under this Article XI by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Guarantee set forth in this
Indenture on behalf of the Guarantor and each Subsidiary Guarantor.

 

SECTION
11.03                                                              Limitation on Liability of the Guarantor and the Subsidiary
Guarantors.

 

The Guarantor and by its acceptance hereof each Holder
of a Security of a series entitled to the benefits of a Guarantor’s Guarantee
under this Article XI hereby confirms that it is the intention of all such
parties that the guarantee by the Guarantor pursuant to its Guarantee not
constitute a fraudulent transfer or conveyance for purposes of any federal or
state law. To effectuate the foregoing intention, the Holders of a Security entitled
to the benefits of such Guarantee and the Guarantor and the Subsidiary
Guarantors hereby irrevocably agree that the obligations of the Guarantor under
its Guarantee shall be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of the Guarantor and to
any collections from or payments made by or on behalf of any Subsidiary
Guarantor in respect of the obligations of such Subsidiary Guarantor result in
the obligations of the Guarantor under its

 

58

 

Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law.

 

Each Subsidiary Guarantor and by its acceptance hereof
each Holder of a Security entitled to the benefits of such Subsidiary Guarantor’s
Guarantee hereby confirm that it is the intention of all such parties that the
guarantee by such Subsidiary Guarantor pursuant to its Guarantee not constitute
a fraudulent transfer or conveyance for purposes of any federal or state
law.  To effectuate the foregoing
intention, the Holders of a Security entitled to the benefits of the Guarantee
and the Guarantor and the Subsidiary Guarantors hereby irrevocably agree that
the obligations of each Subsidiary Guarantor under its Guarantee shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Subsidiary Guarantor and to any
collections from or payments made by or on behalf of the Guarantor or any other
Subsidiary Guarantor in respect of the obligations of the Guarantor or such
other Subsidiary Guarantor under its Guarantee, result in the obligations of
such Subsidiary Guarantor under its Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law.

 

SECTION
11.04                                                              Release of Guarantor or Subsidiary Guarantors from
Guarantee.

 

(a)                                  Notwithstanding
any other provisions of this Indenture, the Guarantee of the Guarantor or any
Subsidiary Guarantor may be released upon the terms and subject to the
conditions set forth in this Section 11.04.  Provided that no Default shall have occurred
and shall be continuing under this Indenture, any Guarantee incurred by the
Guarantor or a Subsidiary Guarantor pursuant to this Article XI shall be
unconditionally released and discharged (i) in the case of a Subsidiary
Guarantor, automatically upon (A) any sale, exchange or transfer, whether by
way of merger or otherwise, to any Person that is not an Affiliate of the
Partnership, of all of the Partnership’s direct or indirect equity interests in
such Subsidiary Guarantor (provided such
sale, exchange or transfer is not prohibited by this Indenture) or (B) the
merger of such Subsidiary Guarantor into the Partnership, the Guarantor or any
other Subsidiary Guarantor or the liquidation and dissolution of such
Subsidiary Guarantor (in each case to the extent not prohibited by this
Indenture) or (ii) in the case of the Guarantor, automatically upon the
merger of the Guarantor into the Partnership or any Subsidiary Guarantor or the
liquidation or dissolution of the Guarantor (in each case to the extent not
prohibited by this Indenture) or (iii) in the case of the Guarantor or a
Subsidiary Guarantor, following delivery of a written notice of such release or
discharge by the Partnership to the Trustee, upon the release or discharge of
all guarantees by the Guarantor or such Subsidiary Guarantor of any Debt of the
Partnership other than obligations arising under this Indenture and any
Securities issued hereunder, except a discharge or release by or as a result of
payment under such guarantees.

 

(b)                                 The
Trustee shall deliver an appropriate instrument evidencing any release of the
Guarantor or a Subsidiary Guarantor from its Guarantee upon receipt of a
written request of the Partnership accompanied by an Officers’ Certificate and
an Opinion of Counsel that the Guarantor or the Subsidiary Guarantor, as the
case may be, is entitled to such release in accordance with the provisions of
this Indenture. If the Guarantor or any Subsidiary Guarantor is not so released,
it shall remain liable for the full amount of principal of (and premium, if
any, on) and interest on the Securities entitled to the benefits of such
Guarantee as provided in this Indenture, subject to the limitations of Section
11.03.

 

59

 

SECTION
11.05                                                              Contribution.

 

In order to provide for just and equitable
contribution among the Subsidiary Guarantors and the Guarantor, the Subsidiary
Guarantors and the Guarantor hereby agree, inter se, that in the event any
payment or distribution is made by the Guarantor or any Subsidiary Guarantor (a
“Funding Guarantor”) under its Guarantee, such Funding Guarantor shall be
entitled to a contribution from the Guarantor and each other Subsidiary
Guarantor (as applicable) in a pro rata amount based on the net assets of the
Guarantor and each Subsidiary Guarantor (including the Funding Guarantor) for
all payments, damages and expenses incurred by that Funding Guarantor in
discharging the Partnership’s obligations with respect to the Securities of a
series entitled to the benefits of a Guarantee under this Article XI or any
other Subsidiary Guarantor’s or the Guarantor’s obligations with respect to its
Guarantee to such series of Securities.

 

ARTICLE XII

MISCELLANEOUS

 

SECTION
12.01                                                              Trust
Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by operation of TIA § 318(c), the imposed
duties shall control.

 

SECTION 12.02                                                              Notices.

 

Any notice or communication by the Partnership, the
Guarantor, any Subsidiary Guarantor or the Trustee to the others is duly given
if in writing and delivered in person or mailed by first-class mail (registered
or certified, return receipt requested), telex, facsimile or overnight air
courier guaranteeing next day delivery, to the other’s address:

 

If to the Partnership, the
Guarantor or any Subsidiary Guarantor:

K-Sea Operating Partnership L.P.

3245 Richmond Terrace

Staten Island, New York
10303

Attn:  John J. Nicola

Telephone: (718) 720-7207

Facsimile: (718) 815-4650

 

If to the Trustee:

 

Attn:

Telephone:

Facsimile:

 

The Partnership, the Guarantor, any Subsidiary
Guarantor or the Trustee by notice to the others may designate additional or
different addresses for subsequent notices or communications.

 

60

 

All notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder shall be
mailed by first-class mail, postage prepaid, to the Holder’s address shown on
the register kept by the Registrar. 
Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it, except in the case of notice to the Trustee, it is duly
given only when received.

 

If the Partnership, the Guarantor or a Subsidiary
Guarantor mails a notice or communication to Holders, it shall mail a copy to
the Partnership, the Guarantor and the other Subsidiary Guarantors, as the case
may be, and to the Trustee and each Agent at the same time.

 

All notices or communications, including, without
limitation, notices to the Trustee, the Partnership, the Guarantor or a
Subsidiary Guarantor by Holders, shall be in writing, except as otherwise set
forth herein.

 

In case by reason of the suspension of regular mail
service, or by reason of any other cause, it shall be impossible to mail any
notice required by this Indenture, then such method of notification as shall be
made with the approval of the Trustee shall constitute a sufficient mailing of
such notice.

 

SECTION
12.03                                                              Communication by Holders with Other Holders.

 

Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the
Securities.  The Partnership, the
Guarantor, the Subsidiary Guarantors, the Trustee, the Registrar and anyone
else shall have the protection of TIA § 312(c).

 

SECTION
12.04                                                              Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Partnership, the
Guarantor or a Subsidiary Guarantor to the Trustee to take any action under this
Indenture, the Partnership, the Guarantor or such Subsidiary Guarantor, as the
case may be, shall, if requested by the Trustee, furnish to the Trustee at the
expense of the Partnership, the Guarantor or such Subsidiary Guarantor, as the
case may be:

 

(1)                                  an
Officers’ Certificate (which shall include the statements set forth in
Section 12.05) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

61

 

(2)                                  an Opinion of Counsel (which shall include the statements
set forth in Section 12.05 hereof) stating that, in the opinion of such
counsel, all such conditions precedent and covenants have been complied with.

 

SECTION
12.05                                                              Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4))
shall comply with the provisions of TIA § 314(e) and shall include:

 

(1)                                  a statement that the Person making such certificate or
opinion has read such covenant or condition;

 

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

 

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

 

(4)                                  a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

 

SECTION
12.06                                                              Rules
by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or
at a meeting of Holders.  The Registrar
or the Paying Agent may make reasonable rules and set reasonable requirements
for its functions.

 

SECTION
12.07                                                              Legal
Holidays.

 

If a payment date is a Legal Holiday at a Place of
Payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

 

SECTION
12.08                                                              No
Recourse Against Others.

 

A director, manager, officer, employee, stockholder,
partner or other owner of the Partnership, the General Partner, the Guarantor,
a Subsidiary Guarantor or the Trustee, as such, shall not have any liability
for any obligations of the Partnership under the Securities, for any
obligations of the Guarantor or any Subsidiary Guarantor under the Guarantee,
or for any obligations of the Partnership, the Guarantor, any Subsidiary
Guarantor, or the Trustee under this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  Each Holder by accepting a Security waives
and releases all such liability.  The
waiver and release shall be part of the consideration for the issuance of
Securities.

 

62

 

SECTION
12.09                                                              Governing
Law.

 

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

 

SECTION
12.10                                                              No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Partnership, the Guarantor, any
Subsidiary Guarantor or any other Subsidiary of the Partnership.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

SECTION
12.11                                                              Successors.

 

All agreements of the Partnership, the Guarantor and each
of the Subsidiary Guarantors in this Indenture and the Securities shall bind
its successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

 

SECTION
12.12                                                              Severability.

 

In case any provision in this Indenture or in the
Securities or in any Guarantee shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall, to the
fullest extent permitted by applicable law, not in any way be affected or
impaired thereby.

 

SECTION
12.13                                                              Counterpart
Originals.

 

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

 

SECTION
12.14                                                              Table of Contents, Headings, etc.

 

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

 

63

 

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

 

	
   

  	
  K-SEA OPERATING PARTNERSHIP L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea OLP GP, LLC,

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA TRANSPORTATION PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea General Partner L.P.,

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K-Sea General Partner GP LLC,

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA TRANSPORTATION INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORFOLK ENVIRONMENTAL SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA ACQUISITION1, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K-SEA ACQUISITION2, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
																					

 

 

64

 

	
   

  	
  [                                       ],
  as Trustee

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

65

 

ANNEX A

 

NOTATION
OF GUARANTEE

 

The Guarantor and 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 Guarantor and the Subsidiary
Guarantors to the Holders of Securities and to the Trustee pursuant to the
Guarantee and the Indenture are expressly set forth in Articles X and XI of the
Indenture and reference is hereby made to the Indenture for the precise terms
of the Guarantee.

 

	
   

  	
  K-SEA TRANSPORTATION PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K-Sea General Partner L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K-Sea General Partner GP LLC,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF SUBSIDIARY GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF SUBSIDIARY GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
														

 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]