Document:

Exhibit 10.2

Exhibit 10.2

THIRD AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SUBURBAN PROPANE, L.P.

(as amended on June 24, 2009)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	RECITALS: 
	 	 	1	 
	ARTICLE I
DEFINITIONS
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	1.2 Construction
	 	 	10	 
	ARTICLE II
ORGANIZATION
	 	 	10	 
	2.1 Formation
	 	 	10	 
	2.2 Name
	 	 	11	 
	2.3 Registered Office; Registered Agent; Principal Office; Other Offices
	 	 	11	 
	2.4 Purpose and Business
	 	 	12	 
	2.5 Powers
	 	 	12	 
	2.6 Power of Attorney
	 	 	12	 
	2.7 Term
	 	 	13	 
	2.8 Title to Partnership Assets
	 	 	14	 
	ARTICLE III RIGHTS OF THE LIMITED PARTNERS
	 	 	14	 
	3.1 Limitation of Liability
	 	 	14	 
	3.2 Management of Business
	 	 	14	 
	3.3 Rights of Limited Partners Relating to the Partnership
	 	 	15	 
	3.4 Outside Activities of the Limited Partners
	 	 	16	 
	ARTICLE IV TRANSFER OF PARTNERSHIP INTERESTS
	 	 	16	 
	4.1 Transfer Generally
	 	 	16	 
	4.2 Transfer of the General Partner’s Partnership Interest
	 	 	16	 
	4.3 Transfer of the Limited Partners’ Partnership Interests
	 	 	17	 
	4.4 Restrictions on Transfers
	 	 	17	 
	ARTICLE V
CONTRIBUTIONS AND INITIAL TRANSFERS
	 	 	17	 
	5.1 Organizational Contributions
	 	 	17	 
	5.2 [Intentionally Deleted.]
	 	 	18	 
	5.3 Additional Capital Contributions
	 	 	18	 
	5.4 Interest and Withdrawal
	 	 	18	 
	5.5 Capital Accounts
	 	 	18	 
	5.6 Loans from Partners
	 	 	20	 
	5.7 No Preemptive Rights
	 	 	21	 
	5.8 Fully Paid and Non-Assessable Nature of Limited Partner Partnership
Interests
	 	 	21	 

 

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE VI ALLOCATIONS AND DISTRIBUTIONS
	 	 	21	 
	6.1 Allocations for Capital Account Purposes
	 	 	21	 
	6.2 Allocations for Tax Purposes
	 	 	24	 
	6.3 [Intentionally Deleted.]
	 	 	26	 
	6.4 General Distributions
	 	 	26	 
	ARTICLE VII MANAGEMENT AND OPERATION OF BUSINESS
	 	 	27	 
	7.1 Management
	 	 	27	 
	7.2 The Board of Supervisors; Appointment; Manner of Acting
	 	 	29	 
	7.3 Removal of Members of the Board of Supervisors
	 	 	29	 
	7.4 Resignations of Members of the Board of Supervisors
	 	 	29	 
	7.5 Vacancies on the Board of Supervisors
	 	 	29	 
	7.6 Meetings; Committees; Chairman
	 	 	30	 
	7.7 Officers
	 	 	31	 
	7.8 Compensation
	 	 	33	 
	7.9 Restrictions on General Partner’s and Board of Supervisors’ Authority
	 	 	33	 
	7.10 Reimbursement of the General Partner; Employee Benefit Plans
	 	 	34	 
	7.11 Outside Activities of the General Partner
	 	 	34	 
	7.12 Loans from the General Partner; Contracts with Affiliates; Certain
Restrictions on the General Partner
	 	 	35	 
	7.13 Indemnification
	 	 	37	 
	7.14 Liability of Indemnitees
	 	 	38	 
	7.15 Resolution of Conflicts of Interest
	 	 	39	 
	7.16 Other Matters Concerning the General Partner and the Board of
Supervisors
	 	 	41	 
	7.17 Reliance by Third Parties
	 	 	42	 

 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE VIII BOOKS, RECORDS, ACCOUNTING AND REPORTS
	 	 	42	 
	8.1 Records and Accounting
	 	 	42	 
	8.2 Fiscal Year
	 	 	42	 
	ARTICLE IX TAX MATTERS
	 	 	43	 
	9.1 Tax Returns and Information
	 	 	43	 
	9.2 Tax Elections
	 	 	43	 
	9.3 Tax Controversies
	 	 	43	 
	9.4 Withholding
	 	 	43	 
	ARTICLE X
ADMISSION OF PARTNERS
	 	 	44	 
	10.1 Current Partners
	 	 	44	 
	10.2 Admission of Substituted Limited Partners
	 	 	44	 
	10.3 Admission of Successor General Partner
	 	 	44	 
	10.4 Admission of Additional Limited Partners
	 	 	45	 
	10.5 Amendment of Agreement and Certificate of Limited Partnership
	 	 	45	 
	ARTICLE XI WITHDRAWAL OR REMOVAL OF PARTNERS
	 	 	45	 
	11.1 Withdrawal of the General Partner
	 	 	45	 
	11.2 Removal of the General Partner
	 	 	47	 
	11.3 Interest of Departing Partner and Successor General Partner; Delegation
of Authority to the Board of Supervisors by Successor General Partner
	 	 	48	 
	11.4 Withdrawal of the Limited Partner
	 	 	48	 
	ARTICLE XII DISSOLUTION AND LIQUIDATION
	 	 	48	 
	12.1 Dissolution
	 	 	48	 
	12.2 [Intentionally omitted]
	 	 	49	 
	12.3 Liquidator
	 	 	49	 
	12.4 Liquidation
	 	 	50	 
	12.5 Cancellation of Certificate of Limited Partnership
	 	 	50	 
	12.6 Return of Capital Contributions
	 	 	50	 
	12.7 Waiver of Partition
	 	 	51	 
	12.8 Capital Account Restoration
	 	 	51	 

 

iii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE XIII AMENDMENT OF PARTNERSHIP AGREEMENT
	 	 	51	 
	13.1 Amendment to be Adopted Solely by the Board of Supervisors
	 	 	51	 
	13.2 Amendment Procedures
	 	 	52	 
	ARTICLE XIV MERGER
	 	 	53	 
	14.1 Authority
	 	 	53	 
	14.2 Procedure for Merger or Consolidation
	 	 	53	 
	14.3 Approval by Limited Partners of Mergers or Consolidations
	 	 	54	 
	14.4 Certificate of Merger
	 	 	54	 
	14.5 Effect of Merger
	 	 	54	 
	ARTICLE XV GENERAL PROVISIONS
	 	 	55	 
	15.1 Addresses and Notices
	 	 	55	 
	15.2 References
	 	 	55	 
	15.3 Further Action
	 	 	55	 
	15.4 Binding Effect
	 	 	55	 
	15.5 Integration
	 	 	55	 
	15.6 Creditors
	 	 	56	 
	15.7 Waiver
	 	 	56	 
	15.8 Counterparts
	 	 	56	 
	15.9 Applicable Law
	 	 	56	 
	15.10 Invalidity of Provisions
	 	 	56	 

 

iv

 

THIRD AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SUBURBAN PROPANE, L.P.

This Third Amended and Restated Agreement of Limited Partnership of Suburban Propane,
L.P. dated as of October 19, 2006, as amended on June 24, 2009, is entered into by and among
Suburban Energy Services Group LLC, a Delaware limited liability company, as the General Partner,
Suburban Propane Partners, L.P., a Delaware limited partnership, as a Limited Partner, and Suburban
LP Holding, LLC, a Delaware limited liability company, as a Limited Partner, together with any
other Persons who become Partners in the Partnership or parties hereto as provided herein. In
consideration of the covenants, conditions and agreements contained herein, the parties hereto
hereby agree as follows:

R E C I T A L S:

WHEREAS, Suburban Propane GP, Inc., a Delaware corporation and the initial general partner of
the Partnership (the “Initial General Partner”), and certain other parties organized the
Partnership as a Delaware limited partnership pursuant to an Amended and Restated Agreement of
Limited Partnership dated as of March 4, 1996 (the “Original Agreement”); and

WHEREAS, the Second Amended and Restated Agreement of Limited Partnership of the Partnership,
dated as of May 26, 1999 amended and restated the Original Agreement in its entirety, (the
“Second Restated Agreement”); and

WHEREAS, the Partnership, the MLP and the General Partner have entered into an Exchange
Agreement, dated as of July 27, 2006 (the “Exchange Agreement”); and the MLP, Suburban LP,
Suburban LP Holding, Inc., and the General Partner have entered into a First Amendment and
Assignment Agreement amending the Second Restated Agreement, dated as of the date hereof (the
“OLP Amendment”); and

WHEREAS, pursuant to the OLP Amendment, inter alia Suburban LP has been admitted to the
Partnership as a Limited Partner; and

WHEREAS, in connection with the transactions contemplated by the Exchange Agreement, the OLP
Amendment and the MLP Agreement (as defined herein), the Second Restated Agreement was amended and
restated in its entirety by the Third Amended and Restated Agreement of Limited Partnership of the
Partnership, dated October 19, 2006 (the “Third Restated Agreement”); and

WHEREAS, the Third Restated Agreement is being further amended to permit the General Partner
to pledge its Partnership Interest in the Partnership solely for the purpose of securing, directly
or indirectly, indebtedness of the Partnership or the MLP and to make certain related changes.

 

 

 

NOW, THEREFORE, in consideration of the covenants and agreements made herein, the Third
Restated Agreement is hereby further amended to permit the General Partner to pledge its
Partnership Interest in the Partnership for certain purposes solely for the purpose of securing,
directly or indirectly, indebtedness of the Partnership or the MLP and to make certain related
changes:

ARTICLE I

Definitions

1.1 Definitions.

The following definitions shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement. Capitalized terms used herein but not
otherwise defined shall have the meanings assigned to such terms in the MLP Agreement.

“Additional Limited Partner” means a Person admitted to the Partnership as a Limited Partner
pursuant to Section 10.4 and who is shown as such on the books and records of the Partnership.

“Adjusted Capital Account” means the Capital Account maintained for each Partner as of the end
of each calendar year, (a) increased by any amounts that such Partner is obligated to restore under
the standards set by Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (or is deemed obligated to
restore under Treasury Regulation Sections 1.704-2(g) and 1.704-2(i)(5)) and (b) decreased by
(i) the amount of all losses and deductions that, as of the end of such calendar year, are
reasonably expected to be allocated to such Partner in subsequent years under Sections 704(e)(2)
and 706(d) of the Code and Treasury Regulation Section 1.751-1(b)(2)(ii), and (ii) the amount of
all distributions that, as of the end of such calendar year, are reasonably expected to be made to
such Partner in subsequent years in accordance with the terms of this Agreement or otherwise to the
extent they exceed offsetting increases to such Partner’s Capital Account that are reasonably
expected to occur during (or prior to) the year in which such distributions are reasonably expected
to be made (other than increases as a result of a minimum gain chargeback pursuant to
Section 6.1(c)(i) or 6.1(c)(ii)). The foregoing definition of Adjusted Capital Account is intended
to comply with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

“Adjusted Property” means any property the Carrying Value of which has been adjusted pursuant
to Section 5.5(d)(i) or 5.5(d)(ii).

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

 

2

 

“Agreed Allocation” means any allocation, other than a Required Allocation, of an item of
income, gain, loss or deduction pursuant to the provisions of Section 6.1, including, without
limitation, a Curative Allocation (if appropriate to the context in which the term “Agreed
Allocation” is used).

“Agreed Value” of any Contributed Property means the fair market value of such property or
other consideration at the time of contribution as determined by the Board of Supervisors using
such reasonable method of valuation as it may adopt. The Board of Supervisors shall, in its
discretion, use such method as it deems reasonable and appropriate to allocate the aggregate Agreed
Value of Contributed Properties contributed to the Partnership in a single or integrated
transaction among each separate property on a basis proportional to the fair market value of each
Contributed Property.

“Agreement” means this Third Amended and Restated Agreement of Limited Partnership of Suburban
Propane, L.P., as it may be amended, supplemented or restated from time to time.

“Audit Committee” means a committee of the Board of Supervisors of the Partnership composed of
the same individuals who serve as the audit committee of the MLP.

“Available Cash,” means, with respect to any Quarter ending prior to the Liquidation Date,

(a) the sum of (i) all cash and cash equivalents of the Partnership Group on hand at the end
of such Quarter, and (ii) all additional cash and cash equivalents of the Partnership Group on hand
on the date of determination of Available Cash with respect to such Quarter resulting from
borrowings for working capital purposes, in each case subsequent to the end of such Quarter, less

(b) the amount of any cash reserves that is necessary or appropriate in the reasonable
discretion of the Board of Supervisors to (i) provide for the proper conduct of the business of the
Partnership Group (including reserves for future capital expenditures) subsequent to such Quarter,
and (ii) comply with applicable law or any loan agreement, security agreement, mortgage, debt
instrument or other agreement or obligation to which any Group Member is a party or by which it is
bound or its assets are subject; provided, however, that disbursements made by a Group Member or
cash reserves established, increased or reduced after the end of such Quarter but on or before the
date of determination of Available Cash with respect to such Quarter shall be deemed to have been
made, established, increased or reduced, for purposes of determining Available Cash, within such
Quarter if the Board of Supervisors so determines.

Notwithstanding the foregoing, “Available Cash” with respect to the Quarter in which the
Liquidation Date occurs and any subsequent Quarter shall equal zero.

“Board of Supervisors” shall mean the board of supervisors of the Partnership, composed of
those individuals who serve as members of the MLP’s board of supervisors, to whom the General
Partner irrevocably delegates, and in which is vested, pursuant to Section 7.1,
and subject to Section 7.9, the power to manage the business and activities of the Partnership. The
Board of Supervisors shall constitute a committee within the meaning of Section 17-303(b)(7) of the
Delaware Act.

 

3

 

“Book-Tax Disparity” means with respect to any item of Contributed Property or Adjusted
Property, as of the date of any determination, the difference between the Carrying Value of such
Contributed Property or Adjusted Property and the adjusted basis thereof for federal income tax
purposes as of such date. A Partner’s share of the Partnership’s Book-Tax Disparities in all of
its Contributed Property and Adjusted Property will be reflected by the difference between such
Partner’s Capital Account balance as maintained pursuant to Section 5.5 and the hypothetical
balance of such Partner’s Capital Account computed as if it had been maintained strictly in
accordance with federal income tax accounting principles.

“Business Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the United States of America or the states of New York or
New Jersey shall not be regarded as a Business Day.

“Capital Account” means the capital account maintained for a Partner pursuant to Section 5.5.

“Capital Contribution” means any cash, cash equivalents or the Net Agreed Value of Contributed
Property that a Partner contributes or has contributed to the Partnership pursuant to this
Agreement (or the Original Agreement) or the Contribution and Conveyance Agreement.

“Capitalized Lease Obligations” means obligations to pay rent or other amounts under any lease
of (or other arrangement conveying the right to use) real and/or personal property, which
obligations are accounted for as a capital lease on a balance sheet under U.S. GAAP; for the
purpose hereof the amount of such obligations shall be the capitalized amount reflected on such
balance sheet.

“Carrying Value” means (a) with respect to a Contributed Property, the Agreed Value of such
property reduced (but not below zero) by all depreciation, amortization and cost recovery
deductions charged to the Partners’ Capital Accounts in respect of such Contributed Property, and
(b) with respect to any other Partnership property, the adjusted basis of such property for federal
income tax purposes, all as of the time of determination. The Carrying Value of any property shall
be adjusted from time to time in accordance with Sections 5.5(d)(i) and 5.5(d)(ii) and to reflect
changes, additions or other adjustments to the Carrying Value for dispositions and acquisitions of
Partnership properties, as deemed appropriate by the Board of Supervisors.

“Cause” means a court of competent jurisdiction has entered a final, non-appealable judgment
finding a Person liable for actual fraud, gross negligence or willful or wanton misconduct in its
capacity as general partner of the Partnership or as a member of the Board of Supervisors, as the
case may be.

 

4

 

“Certificate of Limited Partnership” means the Certificate of Limited Partnership of the
Partnership filed with the Secretary of State of the State of Delaware as referenced in
Section 2.1, as such Certificate of Limited Partnership may be amended, supplemented or restated
from time to time.

“Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time.
Any reference herein to a specific section or sections of the Code shall be deemed to include a
reference to any corresponding provision of future law.

“Commission” means the United States Securities and Exchange Commission.

“Contributed Property” means each property or other asset, in such form as may be permitted by
the Delaware Act, but excluding cash, contributed to the Partnership. Once the Carrying Value of a
Contributed Property is adjusted pursuant to Section 5.5(d), such property shall no longer
constitute a Contributed Property, but shall be deemed an Adjusted Property.

“Contribution and Conveyance Agreement” means that certain Contribution, Conveyance and
Assumption Agreement, dated as of March 4, 1996, among the Initial General Partner, the MLP, the
Partnership and certain other parties, together with the additional conveyance documents and
instruments contemplated or referenced thereunder.

“Curative Allocation” means any allocation of an item of income, gain, deduction, loss or
credit pursuant to the provisions of Section 6.1(c)(ix).

“Delaware Act” means the Delaware Revised Uniform Limited Partnership Act, 6 Del C. §§17-101,
et seq., as amended, supplemented or restated from time to time, and any successor to such statute.

“Departing Partner” means a former General Partner from and after the effective date of any
event of withdrawal, including the removal of such former General Partner pursuant to Section 11.1
or 11.2.

“Economic Risk of Loss” has the meaning set forth in Treasury Regulation Section 1.752-2(a).

“Event of Withdrawal” has the meaning assigned to such term in Section 11.1(a).

“Exchange Agreement” has the meaning assigned to such term in the Recitals hereof.

“General Partner” means Suburban Energy Services Group LLC, a Delaware limited liability
company, in its capacity as general partner of the Partnership, or any additional or successor
general partner of the Partnership admitted to the Partnership as a general partner thereof in
accordance with the terms hereof, in its capacity as a general partner of the Partnership.

 

5

 

“Group Member” means a member of the Partnership Group.

“Indebtedness,” as used in Section 7.9(b), means, as applied to any Person, without
duplication, any indebtedness, exclusive of deferred taxes, (i) in respect of borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or only to
a portion thereof); (ii) evidenced by bonds, notes, debentures or similar instruments or letters of
credit in support of bonds, notes, debentures or similar instruments; (iii) representing the
balance deferred and unpaid of the purchase price of any property, if and to the extent such
indebtedness would appear as a liability on a balance sheet of such Person prepared in accordance
with U.S. GAAP (but excluding trade accounts payable arising in the ordinary course of business
that are not overdue by more than 90 days or are being contested by such Person in good faith);
(iv) any Capitalized Lease Obligations of such Person; and (v) Indebtedness of others guaranteed by
such Person, including, without limitation, every obligation of such Person (A) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or to purchase (or to
advance or supply funds for the purchase of) any security for the payment of such Indebtedness, or
(B) to maintain working capital, equity capital or other financial statement condition or liquidity
of the primary obligor so as to enable the primary obligor to pay such Indebtedness.

“Indemnitee” means (a) the members of the Board of Supervisors or the members of the board of
supervisors of the MLP or any other Group Member, (b) the General Partner, any Departing Partner
and any Person who is or was an Affiliate of the General Partner or any Departing Partner, (c) any
Person who is or was a member, partner, director, officer, employee, agent or trustee of the MLP,
any Group Member, the General Partner or any Departing Partner or any Affiliate or the MLP, any
Group Member, the General Partner or any Departing Partner and (e) any Person who is or was serving
at the request of the Board of Supervisors, the General Partner or any Departing Partner or any
Affiliate of the General Partner or any Departing Partner as a member, partner, director, officer,
employee, partner, agent, fiduciary or trustee of another Person, in each case, acting in such
capacity; provided, that a Person shall not be an Indemnitee by reason of providing, on a
fee-for-services basis, trustee, fiduciary or custodial services.

“Initial General Partner” means Suburban Propane GP, Inc., a Delaware corporation.

“Limited Partner” means, collectively, unless the context otherwise requires, the MLP,
Suburban LP, each Substituted Limited Partner, each Additional Limited Partner and any Departing
Partner upon the change of its status from General Partner to Limited Partner pursuant to Section
11.3.

“Liquidation Date” means (a) in the case of an event giving rise to the dissolution of the
Partnership of the type described in clauses (a) and (b) of the first sentence of Section 12.2, the
date on which the applicable time period during which the Partners have the right to elect to
reconstitute the Partnership and continue its business has expired without such an election being
made, and (b) in the case of any other event giving rise to the dissolution of the Partnership, the
date on which such event occurs.

 

6

 

“Liquidator” means one or more Persons selected by the Board of Supervisors to perform the
functions described in Section 12.3.

“Merger Agreement” has the meaning assigned to such term in Section 14.1.

“MLP” means Suburban Propane Partners, L.P., a Delaware limited partnership.

“MLP Agreement” means the Third Amended and Restated Agreement of Limited Partnership of the
MLP, as it may be amended, supplemented or restated from time to time.

“Net Agreed Value” means, (a) in the case of any Contributed Property, the Agreed Value of
such property reduced by any liabilities either assumed by the Partnership upon such contribution
or to which such property is subject when contributed, and (b) in the case of any property
distributed to a Partner by the Partnership, the Partnership’s Carrying Value of such property (as
adjusted pursuant to Section 5.5(d)(ii)) at the time such property is distributed, reduced by any
indebtedness either assumed by such Partner upon such distribution or to which such property is
subject at the time of distribution, in either case, as determined under Section 752 of the Code.

“Net Income” means, for any taxable year, the excess, if any, of the Partnership’s items of
income and gain for such taxable year over the Partnership’s items of loss and deduction for such
taxable year. The items included in the calculation of Net Income shall be determined in
accordance with Section 5.5(b) and shall not include any items specially allocated under
Section 6.1(c).

“Net Loss” means, for any taxable year, the excess, if any, of the Partnership’s items of loss
and deduction for such taxable year over the Partnership’s items of income and gain for such
taxable year. The items included in the calculation of Net Loss shall be determined in accordance
with Section 5.5(b) and shall not include any items specially allocated under Section 6.1(c).

“Nonrecourse Built-in Gain” means, with respect to any Contributed Properties or Adjusted
Properties that are subject to a mortgage or pledge securing a Nonrecourse Liability, the amount of
any taxable gain that would be allocated to the Partners pursuant to Sections 6.2(b)(i)(A),
6.2(b)(ii)(A) and 6.2(b)(iii) if such properties were disposed of in a taxable transaction in full
satisfaction of such liabilities and for no other consideration.

“Nonrecourse Deductions” means any and all items of loss, deduction or expenditures
(including, without limitation, any expenditure described in Section 705(a)(2)(B) of the Code)
that, in accordance with the principles of Treasury Regulation Section 1.704-2(b), are attributable
to a Nonrecourse Liability.

“Nonrecourse Liability” has the meaning set forth in Treasury Regulation
Section 1.752-1(a)(2).

 

7

 

“OLP Subsidiary” means a Subsidiary of the Partnership.

“Officers” means the Chief Executive Officer, the President, any Vice Presidents, the
Secretary, the Treasurer, any Assistant Secretaries or Assistant Treasurers and any other officers
of the Partnership appointed by the Board of Supervisors pursuant to Section 7.7.

“Opinion of Counsel” means a written opinion of counsel (who may be regular counsel to the
Partnership or the General Partner or any of their Affiliates) acceptable to the Board of
Supervisors in its reasonable discretion.

“Original Agreement” has the meaning assigned to such term in the Recitals to this Agreement.

“Original Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the MLP dated as of March 4, 1996.

“Partner Nonrecourse Debt” has the meaning set forth in Treasury Regulation
Section 1.704-2(b)(4).

“Partner Nonrecourse Debt Minimum Gain” has the meaning set forth in Treasury Regulation
Section 1.704-2(i)(2).

“Partner Nonrecourse Deductions” means any and all items of loss, deduction or expenditure
(including, without limitation, any expenditure described in Section 705(a)(2)(B) of the Code)
that, in accordance with the principles of Treasury Regulation Section 1.704-2(i), are attributable
to a Partner Nonrecourse Debt.

“Partners” means the General Partner and the Limited Partner.

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

“Partnership Group” means the Partnership and the OLP Subsidiaries, treated as a single
consolidated entity.

“Partnership Interest” means the interest of a Partner in the Partnership.

“Partnership Minimum Gain” means that amount determined in accordance with the principles of
Treasury Regulation Section 1.704-2(d).

“Percentage Interest” means (a) as to the General Partner (in its capacity as General Partner
without reference to any limited partner interests held by it) zero, (b) as to the MLP as a Limited
Partner, 99.9%, and (c) as to Suburban LP as a Limited Partner, 0.1%.

“Person” means an individual or a corporation, limited liability company, partnership, limited
liability partnership, joint venture, trust, unincorporated organization, association, government
agency or political subdivision thereof or other entity.

 

8

 

“Quarter” means, unless the context requires otherwise, a fiscal quarter of the Partnership.

“Recapture Income” means any gain recognized by the Partnership (computed without regard to
any adjustment required by Section 734 or 743 of the Code) upon the disposition of any property or
asset of the Partnership, which gain is characterized as ordinary income because it represents the
recapture of deductions previously taken with respect to such property or asset.

“Required Allocations” means (a) any limitation imposed on any allocation of Net Losses, and
(b) any allocation of an item of income, gain, loss or deduction pursuant to Section 6.1(c)(i),
6.1(c)(ii), 6.1(c)(iii), 6.1(c)(vi) or 6.1(c)(viii).

“Residual Gain” or “Residual Loss” means any item of gain or loss, as the case may be, of the
Partnership recognized for federal income tax purposes resulting from a sale, exchange or other
disposition of a Contributed Property or Adjusted Property, to the extent such item of gain or loss
is not allocated pursuant to Section 6.2(b)(i)(A) or 6.2(b)(ii)(A), respectively, to eliminate
Book-Tax Disparities.

“Securities Act” means the Securities Act of 1933, as amended, supplemented or restated from
time to time and any successor to such statute.

“Special Approval” means approval by a majority of the members of the Audit Committee.

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of
the voting power of shares entitled (without regard to the occurrence of any contingency) to vote
in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

“Substituted Limited Partner” means a Person who is admitted as a Limited Partner to the
Partnership pursuant to Section 10.2 in place of and with all the rights of a Limited Partner.

 

9

 

“Suburban LP” means Suburban LP Holding, LLC, a Delaware limited liability company.

“Surviving Business Entity” has the meaning assigned to such term in Section 14.2(b).

“Transfer” has the meaning assigned to such term in Section 4.1(a).

“Unrealized Gain” attributable to any item of Partnership property means, as of any date of
determination, the excess, if any, of (a) the fair market value of such property as of such date
(as determined under Section 5.5(d)) over (b) the Carrying Value of such property as of such date
(prior to any adjustment to be made pursuant to Section 5.5(d) as of such date).

“Unrealized Loss” attributable to any item of Partnership property means, as of any date of
determination, the excess, if any, of (a) the Carrying Value of such property as of such date
(prior to any adjustment to be made pursuant to Section 5.5(d) as of such date) over (b) the fair
market value of such property as of such date (as determined under Section 5.5(d)).

“U.S. GAAP” means United States Generally Accepted Accounting Principles consistently applied.

“Withdrawal Opinion of Counsel” has the meaning assigned to such term in Section 11.1(b).

1.2 Construction.

Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and
verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to
Articles and Sections of this Agreement; and (c) “include” or “includes” means includes, without
limitation, and “including” means including, without limitation.

ARTICLE II

Organization

2.1 Formation.

The Initial General Partner and the MLP previously formed the Partnership as a limited
partnership upon the filing on December 19, 1995 of the Certificate of Limited Partnership with the
Secretary of State of the State of Delaware pursuant to the provisions of the Delaware Act. The
General Partner and the Limited Partners hereby amend the Third Restated Agreement to permit the
General Partner to pledge its Partnership Interest in the Partnership solely for the purpose of
securing, directly or indirectly, indebtedness of the Partnership or the MLP and to make certain
related changes. This amendment shall become effective on the date of this Agreement. Except as
expressly provided to the contrary in this Agreement, the rights
and obligations of the Partners and the administration, dissolution and termination of the
Partnership shall be governed by the Delaware Act. All Partnership Interests shall constitute
personal property of the owner thereof for all purposes.

 

10

 

The Initial General Partner has caused the Certificate of Limited Partnership to be filed with
the Secretary of State of the State of Delaware as required by the Delaware Act and the General
Partner shall use all reasonable efforts to cause to be filed such other certificates or documents
as may be determined by the Board of Supervisors to be reasonable and necessary or appropriate for
the formation, continuation, qualification and operation of a limited partnership (or a partnership
in which the limited partners have limited liability) in the State of Delaware or any other state
in which the Partnership may elect to do business or own property. To the extent that such action
is determined by the Board of Supervisors to be reasonable and necessary or appropriate, the
General Partner shall file amendments to and restatements of the Certificate of Limited Partnership
and do all things to maintain the Partnership as a limited partnership (or a partnership in which
the limited partners have limited liability) under the laws of the State of Delaware or of any
other state in which the Partnership may elect to do business or own property, including in
connection with the Exchange Agreement and the transactions contemplated thereby. Subject to the
provisions of Section 3.4(a), the Partnership shall not be required, before or after filing, to
deliver or mail a copy of the Certificate of Limited Partnership, any qualification document or any
amendment thereto to any Limited Partner.

2.2 Name.

The name of the Partnership shall be “Suburban Propane, L.P.” The Partnership’s business may
be conducted under any other name or names deemed necessary or appropriate by the Board of
Supervisors, including, if consented to by the General Partner in its sole discretion, the name of
the General Partner. The words “Limited Partnership,” “L.P.,” “Ltd.” or similar words or letters
shall be included in the Partnership’s name where necessary for the purpose of complying with the
laws of any jurisdiction that so requires. The Board of Supervisors in its discretion may change
the name of the Partnership at any time and from time to time and shall notify the Limited Partners
of such change in the next regular communication to the Limited Partners.

2.3 Registered Office; Registered Agent; Principal Office; Other Offices.

Unless and until changed by the Board of Supervisors or the Chief Executive Officer, the
registered office of the Partnership in the State of Delaware shall be located at Corporation Trust
Center, 1209 Orange Street, New Castle County, Wilmington, Delaware 19801, and the registered agent
for service of process on the Partnership in the State of Delaware at such registered office shall
be The Corporation Trust Company. The principal office of the Partnership shall be located at One
Suburban Plaza, 240 Route 10 West, Whippany, New Jersey 07981-0206 or such other place as the Board
of Supervisors may from time to time designate by notice to the Limited Partners. The Partnership
may maintain offices at such other place or places within or outside the State of Delaware as the
Board of Supervisors deems necessary or appropriate. The address of the General Partner shall be
One Suburban Plaza, 240
Route 10 West, Whippany, New Jersey 07981-0106 or such other place as the General Partner may from
time to time designate by notice to the Limited Partners.

 

11

 

2.4 Purpose and Business.

The purpose and nature of the business to be conducted by the Partnership shall be to
(a) acquire, manage and operate the assets and properties held by the Partnership, (b) engage
directly in, or enter into or form any corporation, partnership, joint venture, limited liability
company or other arrangement to engage indirectly in, any business activity that is approved by the
Board of Supervisors and which may lawfully be conducted by a limited partnership organized
pursuant to the Delaware Act and, in connection therewith, to exercise all of the rights and powers
conferred upon the Partnership pursuant to the agreements relating to such business activity and
(c) do anything necessary or appropriate to the foregoing, including the making of capital
contributions or loans to any Group Member, the MLP or any Subsidiary of the MLP. The Board of
Supervisors has no obligation or duty to the Partnership or the Limited Partners to propose or
approve, and in its discretion may decline to propose or approve, the conduct by the Partnership of
any business.

2.5 Powers.

The Partnership shall be empowered to do any and all acts and things necessary, appropriate,
proper, advisable, incidental to or convenient for the furtherance and accomplishment of the
purposes and business described in Section 2.4 and for the protection and benefit of the
Partnership.

2.6 Power of Attorney.

(a) The Limited Partners hereby constitute and appoint the Chief Executive Officer and
President of the Partnership and, if a Liquidator shall have been selected pursuant to
Section 12.3, the Liquidator, severally (and any successor to the Liquidator by merger, transfer,
assignment, election or otherwise) and each of their authorized officers and attorneys-in-fact, as
the case may be, with full power of substitution, as his true and lawful agent and
attorney-in-fact, with full power and authority in his name, place and stead, to:

(i) execute, swear to, acknowledge, deliver, file and record in the appropriate public
offices (A) all certificates, documents and other instruments (including this Agreement and
the Certificate of Limited Partnership and all amendments or restatements thereof) that the
Board of Supervisors or the Liquidator deems necessary or appropriate to form, qualify or
continue the existence or qualification of the Partnership as a limited partnership (or a
partnership in which the limited partners have limited liability) in the State of Delaware
and in all other jurisdictions in which the Partnership may conduct business or own
property; (B) all certificates, documents and other instruments that the Board of
Supervisors or the Liquidator deems necessary or appropriate to reflect, in accordance with
its terms, any amendment, change, modification or restatement of this Agreement; (C) all
certificates, documents and other instruments (including conveyances and a certificate of
cancellation) that the Board of Supervisors or the Liquidator deems
necessary or appropriate to reflect the dissolution and liquidation of the Partnership
pursuant to the terms of this Agreement; (D) all certificates, documents and other
instruments relating to the admission, withdrawal, removal or substitution of any Partner
pursuant to, or other events described in, Article IV, X, XI or XII; (E) all certificates,
documents and other instruments relating to the determination of the rights, preferences and
privileges of any class or series of Partnership Interests; and (F) all certificates,
documents and other instruments (including agreements and a certificate of merger) relating
to a merger or consolidation of the Partnership pursuant to Article XIV; and

 

12

 

(ii) execute, swear to, acknowledge, deliver, file and record all ballots, consents,
approvals, waivers, certificates, documents and other instruments necessary or appropriate,
in the discretion of the Board of Supervisors or the Liquidator, to make, evidence, give,
confirm or ratify any vote, consent, approval, agreement or other action that is made or
given by the Partners hereunder or is consistent with the terms of this Agreement or is
necessary or appropriate, in the discretion of the Board of Supervisors or the Liquidator,
to effectuate the terms or intent of this Agreement; provided, that when the approval of the
Limited Partners is required by any provision of this Agreement, the Chief Executive Officer
and President of the Partnership and the Liquidator may exercise the power of attorney made
in this Section 2.6(a)(ii) only after the necessary consent or approval of the Limited
Partners is obtained.

Nothing contained in this Section 2.6(a) shall be construed as authorizing the Board of Supervisors
to amend this Agreement except in accordance with Article XIII or as may be otherwise expressly
provided for in this Agreement.

(b) The foregoing power of attorney is hereby declared to be irrevocable and a power coupled
with an interest, and it shall survive and, to the maximum extent permitted by law, not be affected
by the subsequent death, incompetency, disability, incapacity, dissolution, bankruptcy or
termination of the Limited Partners and the transfer of all or any portion of the Limited Partner’s
Partnership Interest and shall extend to the Limited Partner’s heirs, successors, assigns and
personal representatives. The Limited Partners hereby agree to be bound by any representation made
by the Chief Executive Officer or President of the Partnership or the Liquidator acting in good
faith pursuant to such power of attorney; and the Limited Partners hereby waive, to the maximum
extent permitted by law, any and all defenses that may be available to contest, negate or disaffirm
the action of the Chief Executive Officer or President of the Partnership or the Liquidator taken
in good faith under such power of attorney. The Limited Partners shall execute and deliver to the
Chief Executive Officer or President of the Partnership or the Liquidator, within 15 days after
receipt of the request therefor, such further designation, powers of attorney and other instruments
as the Chief Executive Officer or President of the Partnership or the Liquidator deems necessary to
effectuate this Agreement and the purposes of the Partnership.

2.7 Term.

The term of the Partnership commenced upon the filing of the Certificate of Limited
Partnership in accordance with the Delaware Act and shall continue until the close of
Partnership business on September 30, 2085, or until the earlier dissolution of the Partnership in
accordance with the provisions of Article XII.

 

13

 

2.8 Title to Partnership Assets.

Title to Partnership assets, whether real, personal or mixed and whether tangible or
intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner
individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof. Title to any or all of the Partnership assets may be held in the name of the
Partnership, the General Partner or one or more nominees, as the Board of Supervisors may
determine. The General Partner hereby declares and warrants that any Partnership assets for which
record title is held in the name of the General Partner or one or more nominees shall be held by
the General Partner or nominee for the use and benefit of the Partnership in accordance with the
provisions of this Agreement; provided, however, that the General Partner shall use reasonable
efforts to cause record title to such assets (other than those assets in respect of which the Board
of Supervisors determines that the expense and difficulty of conveyancing makes transfer of record
title to the Partnership impracticable) to be vested in the Partnership as soon as reasonably
practicable; provided, further, that, prior to an event of withdrawal of the General Partner or as
soon thereafter as practicable, the General Partner shall use reasonable efforts to effect the
transfer of record title to the Partnership and, prior to any such transfer, will provide for the
use of such assets in a manner satisfactory to the Board of Supervisors. All Partnership assets
shall be recorded as the property of the Partnership in its books and records, irrespective of the
name in which record title to such Partnership assets is held.

ARTICLE III

Rights of the Limited Partners

3.1 Limitation of Liability.

The Limited Partners shall have no liability under this Agreement except as expressly provided
in this Agreement or the Delaware Act.

3.2 Management of Business.

No Limited Partner (other than the General Partner, or any of its Affiliates or any member,
officer, director, employee, partner, agent or trustee of the General Partner or any of its
Affiliates, or any officer, member of the board of supervisors or directors, employee or agent of a
Group Member, in its capacity as such, if such Person shall also be a Limited Partner) shall
participate in the operation, management or control (within the meaning of Section 17-303(a) of the
Delaware Act) of the Partnership’s business, transact any business in the Partnership’s name or
have the power to sign documents for or otherwise bind the Partnership. Any action taken by any
Affiliate of the General Partner or any member, officer, director, employee, partner, agent or
trustee of the General Partner or any of its Affiliates, or any officer, member of the board of
supervisors or directors, member, partner, employee or agent of a Group Member, the MLP or any
Subsidiary of the MLP, in its capacity as such, shall not be deemed to be participation in the
control of the business of the Partnership by a limited partner of the Partnership (within the
meaning of Section 17-303(a) of the Delaware Act) and shall not affect, impair or eliminate the
limitations on the liability of the Limited Partners under this Agreement.

 

14

 

3.3 Rights of Limited Partners Relating to the Partnership.

(a) In addition to other rights provided by this Agreement or by applicable law, and except as
limited by Section 3.3(b), each of the Limited Partners shall have the right, for a purpose
reasonably related to such Limited Partner’s interest as a limited partner in the Partnership, upon
reasonable demand and at the Limited Partner’s own expense:

(i) to obtain true and full information regarding the status of the business and
financial condition of the Partnership;

(ii) promptly after becoming available, to obtain a copy of the Partnership’s federal,
state and local tax returns for each year, provided, however, that only the requesting
Limited Partner’s Schedule K-1 will be included therewith;

(iii) to have furnished to it, upon notification to the Partnership, a current list of
the name and last known business, residence or mailing address of each Partner;

(iv) to have furnished to it, upon notification to the Partnership, a copy of this
Agreement and the Certificate of Limited Partnership and all amendments thereto, together
with a copy of the executed copies of all powers of attorney pursuant to which this
Agreement, the Certificate of Limited Partnership and all amendments thereto have been
executed;

(v) to obtain true and full information regarding the amount of cash and a description
and statement of the Net Agreed Value of any other Capital Contribution by each Partner and
which each Partner has agreed to contribute in the future, and the date on which each became
a Partner; and

(vi) to obtain such other information regarding the affairs of the Partnership as is
just and reasonable.

(b) The Board of Supervisors may keep confidential from the Limited Partners, for such period
of time as the Board of Supervisors deems reasonable, (i) any information that the Board of
Supervisors reasonably believes to be in the nature of trade secrets or (ii) other information the
disclosure of which the Board of Supervisors in good faith believes (A) is not in the best
interests of the Partnership Group, (B) could damage the Partnership Group or (C) that any Group
Member is required by law or by agreements with third parties to keep confidential (other than
agreements with Affiliates the primary purpose of which is to circumvent the obligations set forth
in this Section 3.3).

 

15

 

3.4 Outside Activities of the Limited Partners.

Subject to the provisions of Section 7.11, which shall continue to be applicable to the
Persons referred to therein, regardless of whether such Person shall also be a Limited Partner, any
Limited Partner shall be entitled to and may have business interests and engage in business
activities in addition to those relating to the Partnership, including business interests and
activities in direct competition with the Partnership Group.

ARTICLE IV

Transfer of Partnership Interests

4.1 Transfer Generally.

(a) The term “transfer,” when used in this Agreement with respect to a Partnership Interest,
shall be deemed to refer to a transaction by which a Partner assigns its Partnership Interest to
another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation,
mortgage, exchange or any other disposition by law or otherwise, in whole or in part.

(b) No Partnership Interest shall be transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article IV. Any transfer or purported transfer of
a Partnership Interest not made in accordance with this Article IV shall be null and void.

(c) Nothing contained in this Agreement shall be construed to prevent a disposition by any
securityholder of the General Partner of any or all of the issued and outstanding equity interests
in the General Partner.

(d) Any transfer of a Partnership Interest shall be subject to all mortgages, pledges,
hypothecations and security interests, if any, encumbering such Partnership Interest.

4.2 Transfer of the General Partner’s Partnership Interest.

If the General Partner transfers its partnership interest as the general partner of the MLP to
any Person in accordance with the provisions of the MLP Agreement, upon the request of the Board of
Supervisors, the General Partner shall contemporaneously therewith, transfer all, but not less than
all, of its Partnership Interest as the general partner of the Partnership to such Person for
consideration of $10, and the Limited Partner hereby expressly consents to such transfer. Except
(i) in connection with any pledge of (or any related foreclosure on) the General Partner’s
Partnership Interest as the general partner of the Partnership solely for the purpose of securing,
directly or indirectly, indebtedness of the Partnership or the MLP or (ii) as set forth in the
immediately preceding sentence, the General Partner may not transfer all or any part of its
Partnership Interest as the general partner of the Partnership. Any transferee of the Partnership
Interests of the General Partner pursuant to this Section 4.2 shall be deemed to be a successor to
the General Partner for purposes of this Agreement.

 

16

 

4.3 Transfer of the Limited Partners’ Partnership Interests .

Any Limited Partner may transfer all, but not less than all, of its Partnership Interest as a
limited partner of the Partnership in connection with the merger, consolidation or other
combination of any of the Limited Partners with or into any other Person or the transfer by any of
the Limited Partners of all or substantially all of its assets to another Person, and following any
such transfer such Person may become a Substituted Limited Partner pursuant to Article X. Except as
set forth in the immediately preceding sentence or pursuant to the Exchange Agreement, or in
connection with any pledge of (or any related foreclosure on) the Limited Partner’s Partnership
Interest as a limited partner of the Partnership solely for the purpose of securing, directly or
indirectly, indebtedness of the Partnership or the MLP, a Limited Partner may not transfer all or
any part of its Partnership Interest or withdraw from the Partnership.

4.4 Restrictions on Transfers.

(a) Notwithstanding the other provisions of this Article IV, no transfer of any Partnership
Interest shall be made if such transfer would (i) violate the then applicable federal or state
securities laws or rules and regulations of the Commission, any state securities commission or any
other governmental authorities with jurisdiction over such transfer, (ii) terminate the existence
or qualification of the Partnership or the MLP under the laws of the jurisdiction of its formation
or (iii) cause the Partnership or the MLP to be treated as an association taxable as a corporation
or otherwise to be taxed as an entity for federal income tax purposes (to the extent not already so
treated or taxed).

(b) The Board of Supervisors may impose restrictions on the transfer of Partnership Interests
if a subsequent Opinion of Counsel determines that such restrictions are necessary to avoid a
significant risk of the Partnership or the MLP becoming taxable as a corporation or otherwise to be
taxed as an entity for federal income tax purposes. The restrictions may be imposed by making such
amendments to this Agreement as the Board of Supervisors may determine to be necessary or
appropriate to impose such restrictions.

ARTICLE V

Contributions and Initial Transfers

5.1 Organizational Contributions.

In connection with the formation of the Partnership under the Delaware Act, the Initial
General Partner made an initial Capital Contribution to the Partnership and was admitted as the
general partner of the Partnership, and the MLP made an initial Capital Contribution to the
Partnership and was admitted as a limited partner of the Partnership.

 

17

 

5.2 [Intentionally Deleted.]

5.3 Additional Capital Contributions.

With the consent of the Board of Supervisors, any Limited Partner may, but shall not be
obliged to, make additional Capital Contributions to the Partnership. Except as provided in Section
12.8, the General Partner shall not be obligated, nor permitted, to make any additional Capital
Contributions to the Partnership in its capacity as the General Partner of the Partnership.

5.4 Interest and Withdrawal.

No interest shall be paid by the Partnership on Capital Contributions, and no Partner shall be
entitled to withdraw or a return of any part of its Capital Contributions or to receive any
distribution from the Partnership, except as provided in Articles VI, XI and XII.

5.5 Capital Accounts.

(a) The Partnership shall maintain for each Partner owning a Partnership Interest a separate
Capital Account with respect to such Partnership Interest in accordance with the rules of Treasury
Regulation Section 1.704-1(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of
all Capital Contributions made to the Partnership with respect to such Partnership Interest
pursuant to this Agreement (or any previous partnership agreement of the Partnership) and (ii) all
items of Partnership income and gain (including, without limitation, income and gain exempt from
tax) computed in accordance with Section 5.5(b) and allocated with respect to such Partnership
Interest pursuant to Section 6.1, and decreased by (x) the amount of cash or the Net Agreed Value
of all actual and deemed distributions of cash or property made with respect to such Partnership
Interest pursuant to this Agreement (or any previous partnership agreement of the Partnership) and
(y) all items of Partnership deduction and loss computed in accordance with Section 5.5(b) and
allocated with respect to such Partnership Interest pursuant to Section 6.1. Immediately following
the consummation of the transactions contemplated in the Exchange Agreement, the General Partner’s
initial Capital Account shall be zero.

(b) For purposes of computing the amount of any item of income, gain, loss or deduction which
is to be allocated pursuant to Article VI and is to be reflected in the Partners’ Capital Accounts,
the determination, recognition and classification of any such item shall be the same as its
determination, recognition and classification for federal income tax purposes (including, without
limitation, any method of depreciation, cost recovery or amortization used for that purpose),
provided, that:

(i) Solely for purposes of this Section 5.5, the Partnership shall be treated as owning
directly its proportionate share (as determined by the Board of Supervisors) of all property
owned by any OLP Subsidiary that is classified as a partnership for federal income tax
purposes.

(ii) All fees and other expenses incurred by the Partnership to promote the sale of (or
to sell) a Partnership Interest that can neither be deducted nor amortized under Section 709
of the Code, if any, shall, for purposes of Capital Account maintenance, be
treated as an item of deduction at the time such fees and other expenses are incurred and
shall be allocated among the Partners pursuant to Section 6.1.

 

18

 

(iii) Except as otherwise provided in Treasury Regulation Section 1.704-1(b)(2)(iv)(m),
the computation of all items of income, gain, loss and deduction shall be made without
regard to any election under Section 754 of the Code which may be made by the Partnership
and, as to those items described in Section 705(a)(1)(B) or 705(a)(2)(B) of the Code,
without regard to the fact that such items are not includable in gross income or are neither
currently deductible nor capitalized for federal income tax purposes. To the extent an
adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or
743(b) of the Code is required, pursuant to Treasury Regulation Section 1.704-2(b)(2)(iv)(m)
to be taken into account in determining Capital Accounts, the amount of such adjustment in
the Capital Accounts shall be treated as an item of gain or loss.

(iv) Any income, gain or loss attributable to the taxable disposition of any
Partnership property shall be determined as if the adjusted basis of such property as of
such date of disposition were equal in amount to the Partnership’s Carrying Value with
respect to such property as of such date.

(v) In accordance with the requirements of Section 704(b) of the Code, any deductions
for depreciation, cost recovery or amortization attributable to any Contributed Property
shall be determined as if the adjusted basis of such property on the date it was acquired by
the Partnership were equal to the Agreed Value of such property. Upon an adjustment
pursuant to Section 5.5(d) to the Carrying Value of any Partnership property subject to
depreciation, cost recovery or amortization, any further deductions for such depreciation,
cost recovery or amortization attributable to such property shall be determined (A) as if
the adjusted basis of such property were equal to the Carrying Value of such property
immediately following such adjustment and (B) using a rate of depreciation, cost recovery
or amortization derived from the same method and useful life (or, if applicable, the
remaining useful life) as is applied for federal income tax purposes; provided, however,
that, if the asset has a zero adjusted basis for federal income tax purposes, depreciation,
cost recovery or amortization deductions shall be determined using any reasonable method
that the Board of Supervisors may adopt.

(vi) If the Partnership’s adjusted basis in a depreciable or cost recovery property is
reduced for federal income tax purposes pursuant to Section 48(q)(1) or 48(q)(3) of the
Code, the amount of such reduction shall, solely for purposes hereof, be deemed to be an
additional depreciation or cost recovery deduction in the year such property is placed in
service and shall be allocated among the Partners pursuant to Section 6.1. Any restoration
of such basis pursuant to Section 48(q)(2) of the Code shall, to the extent possible, be
allocated in the same manner to the Partners to whom such deemed deduction was allocated.

 

19

 

(c) A transferee of a Partnership Interest shall succeed to a pro rata portion of the Capital
Account of the transferor relating to the Partnership Interest so transferred.

(d) (i) In accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f), on an
issuance of additional Partnership Interests for cash or Contributed Property, the Capital
Account of all Partners and the Carrying Value of each Partnership property immediately
prior to such issuance shall be adjusted upward or downward to reflect any Unrealized Gain
or Unrealized Loss attributable to such Partnership property, as if such Unrealized Gain or
Unrealized Loss had been recognized on an actual sale of each such property immediately
prior to such issuance and had been allocated to the Partners at such time pursuant to
Section 6.1. In determining such Unrealized Gain or Unrealized Loss, the aggregate cash
amount and fair market value of all Partnership assets (including, without limitation, cash
or cash equivalents) immediately prior to the issuance of additional Partnership Interests
shall be determined by the Board of Supervisors using such reasonable method of valuation as
it may adopt; provided, however, that the Board of Supervisors, in arriving at such
valuation, must take fully into account the fair market value of the Partnership Interests
of all Partners at such time. The Board of Supervisors shall allocate such aggregate value
among the assets of the Partnership (in such manner as it determines in its discretion to be
reasonable) to arrive at a fair market value for individual properties.

(ii) In accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f), immediately
prior to any actual or deemed distribution to a Partner of any Partnership property (other
than a distribution of cash that is not in redemption or retirement of a Partnership
Interest), the Capital Accounts of all Partners and the Carrying Value of all Partnership
property shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized
Loss attributable to such Partnership property, as if such Unrealized Gain or Unrealized
Loss had been recognized in a sale of such property immediately prior to such distribution
for an amount equal to its fair market value, and had been allocated to the Partners, at
such time, pursuant to Section 6.1. In determining such Unrealized Gain or Unrealized Loss
the aggregate cash amount and fair market value of all Partnership assets (including,
without limitation, cash or cash equivalents) immediately prior to a distribution shall
(A) in the case of an actual distribution which is not made pursuant to Section 12.4, be
determined and allocated in the same manner as that provided in Section 5.5(d)(i) or (B) in
the case of a liquidating distribution pursuant to Section 12.4, be determined and allocated
by the Liquidator using such reasonable method of valuation as it may adopt.

5.6 Loans from Partners.

Loans by a Partner to the Partnership shall not constitute Capital Contributions. If any
Partner shall advance funds to the Partnership in excess of the amounts required hereunder to be
contributed by it to the capital of the Partnership, the making of such excess advances shall not
result in any increase in the amount of the Capital Account of such Partner. The amount of any
such excess advances shall be a debt obligation of the Partnership to such Partner and shall be
payable or collectible only out of the Partnership assets in accordance with the terms and
conditions upon which such advances are made.

 

20

 

5.7 No Preemptive Rights.

No Person shall have any preemptive, preferential or other similar rights with respect to
(a) additional Capital Contributions; (b) issuance or sale of any class or series of Partnership
Interests, whether unissued, held in treasury by the Partnership or hereafter created; (c) issuance
of any obligations, evidences of indebtedness or other securities of the Partnership convertible
into or exchangeable for, or carrying or accompanied by any rights to receive, purchase or
subscribe to, any such Partnership Interests; (d) issuance of any right of subscription to or right
to receive, or any warrant or option for the purchase of, any such Partnership Interests; or
(e) issuance or sale of any other securities that may be issued or sold by the Partnership.

5.8 Fully Paid and Non-Assessable Nature of Limited Partner Partnership Interests.

All Limited Partner Partnership Interests issued pursuant to, and in accordance with the
requirements of, this Article V shall be fully paid and non-assessable Partnership Interests in the
Partnership, except as such non-assessability may be affected by Sections 17-607 and 17-804 of the
Delaware Act.

ARTICLE VI

Allocations and Distributions

6.1 Allocations for Capital Account Purposes.

(a) General. In maintaining the Capital Accounts that determine the rights of the Partners
among themselves, the Partnership’s items of income, gain, loss and deduction (computed in
accordance with Section 5.5(b)), shall be allocated among the Partners in accordance with their
relative Percentage Interests, except as otherwise provided below.

(b) Limitation on Losses. Any deduction otherwise allocable to a Limited Partner that would
create or add to a deficit in its Adjusted Capital Account shall instead be allocated to the
General Partner. Thereafter, any income that would otherwise be allocable to such Limited Partner
shall be allocated to the General Partner until the aggregate amount so allocated under this
sentence equals the aggregate deductions previously allocated to the General Partner under the
preceding sentence.

(c) Special Allocations. Notwithstanding any other provision of this Section 6.1, the
following special allocations shall be made for such taxable period:

(i) Partnership Minimum Gain Chargeback. Notwithstanding any other provision of this
Section 6.1, if there is a net decrease in Partnership Minimum Gain during any Partnership
taxable period, each Partner shall be allocated items of Partnership income and gain for
such period (and, if necessary, subsequent periods) in the manner and amounts provided in
Treasury Regulation Sections 1.704-2(f)(6), 1.704-2(g)(2) and 1.704-2(j)(2)(i), or any
successor provision. For purposes of this
Section 6.1(c), each Partner’s Adjusted Capital Account balance shall be determined, and the
allocation of income or gain required hereunder shall be effected, prior to the application
of any other allocations pursuant to this Section 6.1(c) with respect to such taxable period
(other than an allocation pursuant to Sections 6.1(c)(v) and 6.1(c)(vi)). This
Section 6.1(c)(i) is intended to comply with the Partnership Minimum Gain chargeback
requirement in Treasury Regulation Section 1.704-2(f) and shall be interpreted consistently
therewith.

 

21

 

(ii) Chargeback of Partner Nonrecourse Debt Minimum Gain. Notwithstanding the other
provisions of this Section 6.1 (other than Section 6.l(c)(i)), except as provided in
Treasury Regulation Section 1.704-2(i)(4), if there is a net decrease in Partner Nonrecourse
Debt Minimum Gain during any Partnership taxable period, any Partner with a share of Partner
Nonrecourse Debt Minimum Gain at the beginning of such taxable period shall be allocated
items of Partnership income and gain for such period (and, if necessary, subsequent periods)
in the manner and amounts provided in Treasury Regulation Sections 1.704-2(i)(4) and
1.704-2(j)(2)(ii), or any successor provisions. For purposes of this Section 6.1(c), each
Partner’s Adjusted Capital Account balance shall be determined, and the allocation of income
or gain required hereunder shall be effected, prior to the application of any other
allocations pursuant to this Section 6.1(c), other than Section 6.1(c)(i) and other than an
allocation pursuant to Sections 6.1(c)(v) and 6.1(c)(vi), with respect to such taxable
period. This Section 6.1(c)(ii) is intended to comply with the chargeback of items of
income and gain requirement in Treasury Regulation Section 1.704-2(i)(4) and shall be
interpreted consistently therewith.

(iii) Qualified Income Offset. In the event any Partner unexpectedly receives any
adjustments, allocations or distributions described in Treasury Regulation Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), items of
Partnership income and gain shall be specially allocated to such Partner in an amount and
manner sufficient to eliminate, to the extent required by the Treasury Regulations
promulgated under Section 704(b) of the Code, the deficit balance, if any, in its Adjusted
Capital Account created by such adjustments, allocations or distributions as quickly as
possible unless such deficit balance is otherwise eliminated pursuant to Section 6.1(c)(i)
or (ii).

(iv) Gross Income Allocations. In the event any Partner has a deficit balance in its
Capital Account at the end of any Partnership taxable period in excess of the sum of (A) the
amount such Partner is required to restore pursuant to the provisions of this Agreement and
(B) the amount such Partner is deemed obligated to restore pursuant to Treasury Regulation
Sections 1.704-2(g) and 1.704-2(i)(5), such Partner shall be specially allocated items of
Partnership gross income and gain in the amount of such excess as quickly as possible;
provided, that an allocation pursuant to this Section 6.1(c)(iv) shall be made only if and
to the extent that such Partner would have a deficit balance in its Capital Account as
adjusted after all other allocations provided for in this Section 6.1 have been tentatively
made as if this Section 6.1(c)(iv) were not in this Agreement.

 

22

 

(v) Nonrecourse Deductions. Nonrecourse Deductions for any taxable period shall be
allocated to the Partners in accordance with their respective Percentage Interests. If the
Board of Supervisors determines in its good faith discretion that the Partnership’s
Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe harbor
requirements of the Treasury Regulations promulgated under Section 704(b) of the Code, the
Board of Supervisors is authorized, upon notice to the Limited Partners, to revise the
prescribed ratio to the numerically closest ratio that does satisfy such requirements.

(vi) Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any taxable
period shall be allocated 100% to the Partner that bears the Economic Risk of Loss with
respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are
attributable in accordance with Treasury Regulation Section 1.704-2(i). If more than one
Partner bears the Economic Risk of Loss with respect to a Partner Nonrecourse Debt, such
Partner Nonrecourse Deductions attributable thereto shall be allocated between or among such
Partners in accordance with the ratios in which they share such Economic Risk of Loss.

(vii) Nonrecourse Liabilities. For purposes of Treasury Regulation
Section 1.752-3(a)(3), the Partners agree that Nonrecourse Liabilities of the Partnership in
excess of the sum of (A) the amount of Partnership Minimum Gain and (B) the total amount of
Nonrecourse Built-in Gain shall be allocated among the Partners in accordance with their
respective Percentage Interests.

(viii) Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax
basis of any Partnership asset pursuant to Section 734(b) or 743(c) of the Code is required,
pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be
treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if
the adjustment decreases such basis), and such item of gain or loss shall be specially
allocated to the Partners in a manner consistent with the manner in which their Capital
Accounts are required to be adjusted pursuant to such Section of the Treasury Regulations.

 

23

 

(ix) Curative Allocation.

(A) Notwithstanding any other provision of this Section 6.1, other than the
Required Allocations, the Required Allocations shall be taken into account in making
the Agreed Allocations so that, to the extent possible, the net amount of items of
income, gain, loss and deduction allocated to each Partner pursuant to the Required
Allocations and the Agreed Allocations, together, shall be equal to the net amount
of such items that would have been allocated to each such Partner under the Agreed
Allocations had the Required Allocations and the related Curative Allocation not
otherwise been provided in this Section 6.1. Notwithstanding the preceding
sentence, Required Allocations relating to (1) Nonrecourse Deductions shall not be
taken into account except to the extent
that there has been a decrease in Partnership Minimum Gain and (2) Partner
Nonrecourse Deductions shall not be taken into account except to the extent that
there has been a decrease in Partner Nonrecourse Debt Minimum Gain. Allocations
pursuant to this Section 6.1(c)(ix)(A) shall only be made with respect to Required
Allocations to the extent the Board of Supervisors reasonably determines that such
allocations will otherwise be inconsistent with the economic agreement among the
Partners. Further, allocations pursuant to this Section 6.1(c)(ix)(A) shall be
deferred with respect to allocations pursuant to clauses (1) and (2) hereof to the
extent the Board of Supervisors reasonably determines that such allocations are
likely to be offset by subsequent Required Allocations.

(B) The Board of Supervisors shall have reasonable discretion, with respect to
each taxable period, to (1) apply the provisions of Section 6.1(c)(ix)(A) in
whatever order is most likely to minimize the economic distortions that might
otherwise result from the Required Allocations, and (2) divide all allocations
pursuant to Section 6.1(c)(ix)(A) among the Partners in a manner that is likely to
minimize such economic distortions.

6.2 Allocations for Tax Purposes.

(a) General. Except as otherwise provided herein, for federal income tax purposes, each item
of income, gain, loss and deduction shall be allocated among the Partners in the same manner as its
correlative item of “book” income, gain, loss or deduction is allocated pursuant to Section 6.1.

(b) Contributed Property. In an attempt to eliminate Book-Tax Disparities attributable to a
Contributed Property or Adjusted Property, items of income, gain, loss, depreciation, amortization
and cost recovery deductions shall be allocated for federal income tax purposes among the Partners
as follows:

(i) (A) In the case of a Contributed Property, such items attributable thereto shall
be allocated among the Partners in the manner provided under Section 704(c) of the Code that
takes into account the variation between the Agreed Value of such property and its adjusted
basis at the time of contribution; and (B) any item of Residual Gain or Residual Loss
attributable to a Contributed Property shall be allocated among the Partners in the same
manner as its correlative item of “book” gain or loss is allocated pursuant to Section 6.1.

 

24

 

(ii) (A) In the case of an Adjusted Property, such items shall (1) first, be
allocated among the Partners in a manner consistent with the principles of Section 704(c) of
the Code to take into account the Unrealized Gain or Unrealized Loss attributable to such
property and the allocations thereof pursuant to Section 5.5(d)(i) or (ii), and (2) second,
in the event such property was originally a Contributed Property, be allocated among the
Partners in a manner consistent with Section 6.2(b)(i)(A); and (B) any item of Residual Gain
or Residual Loss attributable to an Adjusted Property shall be allocated
among the Partners in the same manner as its correlative item of “book” gain or loss is
allocated pursuant to Section 6.1.

(iii) The Board of Supervisors shall apply the principles of Treasury Regulation
Section 1.704-3(d) to eliminate Book-Tax Disparities.

(c) Discretionary Allocation Authority. For the proper administration of the Partnership and
for the preservation of uniformity of the Units of the MLP (or any class or classes thereof), the
Board of Supervisors shall have sole discretion to (i) adopt such conventions as it deems
appropriate in determining the amount of depreciation, amortization and cost recovery deductions;
(ii) make special allocations for federal income tax purposes of income (including, without
limitation, gross income) or deductions; and (iii) amend the provisions of this Agreement as
appropriate (x) to reflect the proposal or promulgation of Treasury Regulations under
Section 704(b) or Section 704(c) of the Code or (y) otherwise to preserve or achieve uniformity of
the Units of the MLP (or any class or classes thereof). The Board of Supervisors may adopt such
conventions, make such allocations and make such amendments to this Agreement as provided in this
Section 6.2(c) only if such conventions, allocations or amendments would not have a material
adverse effect on the Partners, the holders of any class or classes of Units issued and outstanding
or the Partnership, and if such allocations are consistent with the principles of Section 704 of
the Code.

(d) Discretionary Amortization Authority. The Board of Supervisors in its discretion may
determine to depreciate or amortize the portion of an adjustment under Section 743(b) of the Code
attributable to unrealized appreciation in any Adjusted Property (to the extent of the unamortized
Book-Tax Disparity) using a predetermined rate derived from the depreciation or amortization method
and useful life applied to the Partnership’s common basis of such property, despite any
inconsistency of such approach with Treasury Regulation Section 1.167(c)-1(a)(6). If the Board of
Supervisors determines that such reporting position cannot reasonably be taken, the Board of
Supervisors may adopt depreciation and amortization conventions under which all purchasers
acquiring Units of the MLP in the same month would receive depreciation and amortization
deductions, based upon the same applicable rate as if they had purchased a direct interest in the
Partnership’s property. If the Board of Supervisors chooses not to utilize such aggregate method,
the Board of Supervisors may use any other reasonable depreciation and amortization conventions to
preserve the uniformity of the intrinsic tax characteristics of any Units that would not have a
material adverse effect on any Limited Partner or the holders of any class or classes of Units.

(e) Recapture Income. Any gain allocated to the Partners upon the sale or other taxable
disposition of any Partnership asset shall, to the extent possible, after taking into account other
required allocations of gain pursuant to this Section 6.2, be characterized as Recapture Income in
the same proportions and to the same extent as such Partners (or their predecessors in interest)
have been allocated any deductions directly or indirectly giving rise to the treatment of such
gains as Recapture Income.

 

25

 

(f) Effect of Section 754 Election. All items of income, gain, loss, deduction and credit
recognized by the Partnership for federal income tax purposes and allocated to the
Partners in accordance with the provisions hereof shall be determined without regard to any
election under Section 754 of the Code which may be made by the Partnership; provided, however,
that such allocations, once made, shall be adjusted as necessary or appropriate to take into
account those adjustments permitted or required by Sections 734 and 743 of the Code.

(g) Proration. The Board of Supervisors may adopt such methods of allocation of income, gain,
loss or deduction between a transferor and a transferee of a Partnership Interest as it determines
necessary, to the extent permitted or required by Section 706 of the Code and the regulations or
rulings promulgated thereunder.

6.3 [Intentionally Deleted.]

6.4 General Distributions.

(a) Within 45 days following the end of each Quarter commencing with the Quarter ending on
June 29, 1996, an amount equal to 100% of Available Cash with respect to such Quarter shall be
distributed in accordance with this Article VI by the Partnership to the Partners in accordance
with their respective Percentage Interests. The immediately preceding sentence shall not require
any distribution of cash if and to the extent such distribution would be prohibited by applicable
law or by any loan agreement, security agreement, mortgage, debt instrument or other agreement or
obligation to which the Partnership is a party or by which it is bound or its assets are subject.
All distributions required to be made under this Agreement shall be made subject to Sections 17-607
or 17-804 of the Delaware Act.

(b) In the event of the dissolution and liquidation of the Partnership, all receipts received
during or after the Quarter in which the Liquidation Date occurs, except as otherwise provided in
(a)(ii) of the definition of Available Cash, shall be applied and distributed solely in accordance
with, and subject to the terms and conditions of, Section 12.4.

(c) The Board of Supervisors shall have the discretion to treat taxes paid by the Partnership
on behalf of, or amounts withheld with respect to, all or less than all of the Partners, as a
distribution of Available Cash to such Partners.

 

26

 

ARTICLE VII

Management and Operation of Business

7.1 Management.

(a) Except as otherwise expressly provided in this Agreement, all management powers over the
business and affairs of the Partnership shall be vested exclusively in the Board of Supervisors,
and subject to the direction of the Board of Supervisors and in accordance with the provisions of
Section 7.7, the Officers. Neither the General Partner (except as otherwise expressly provided in
this Agreement) nor any Limited Partner shall have any management power or control over the
business and affairs of the Partnership. Thus, except as otherwise expressly provided in this
Agreement, the business and affairs of the Partnership shall
be managed by or under the direction of the Board of Supervisors, and the day-to-day activities of
the Partnership shall be conducted on the Partnership’s behalf by the Officers, who shall be agents
of the Partnership. In order to enable the Board of Supervisors to manage the business and affairs
of the Partnership, the General Partner, except as otherwise expressly provided in this Agreement,
hereby irrevocably delegates to the Board of Supervisors all management powers over the business
and affairs of the Partnership that it may now or hereafter possess under applicable law. The
General Partner further agrees to take any and all action necessary and appropriate, in the sole
discretion of the Board of Supervisors, to effect any duly authorized actions by the Board of
Supervisors or any Officer, including executing or filing any agreements, instruments or
certificates, delivering all documents, providing all information and taking or refraining from
taking action as may be necessary or appropriate to achieve the effective delegation of power
described in this Section 7.1(a). Each of the Partners and each Person who may acquire an interest
in a Partnership Interest hereby approves, consents to, ratifies and confirms such delegation. The
delegation by the General Partner to the Board of Supervisors of management powers over the
business and affairs of the Partnership pursuant to the provisions of this Agreement shall not
cause the General Partner to cease to be a general partner of the Partnership nor shall it cause
the Board of Supervisors or any member thereof to be a general partner of the Partnership or to
have or be subject to the liabilities of a general partner of the Partnership. Except as otherwise
specifically provided in Sections 7.13, 7.14, 7.15 and 7.16, the authority, functions, duties and
responsibilities of the Board of Supervisors and of the Officers shall be identical to the
authority, functions, duties and responsibilities of the board of directors and officers,
respectively, of a corporation organized under the Delaware General Corporation Law.

(b) Consistent with the management powers delegated to the Board of Supervisors pursuant to
the provisions of this Agreement, the Board of Supervisors shall have the powers now or hereafter
granted a general partner of a limited partnership under the Delaware Act or any other applicable
law and, except as otherwise expressly provided in this Agreement, shall have full power and
authority to do all things and on such terms as it may deem necessary or appropriate to conduct the
business of the Partnership, to exercise all powers set forth in Section 2.5 and to effectuate the
purposes set forth in Section 2.4, including the following:

(i) the making of any expenditures, the lending or borrowing of money, the assumption
or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance
of evidences of indebtedness and the incurring of any other obligations;

(ii) the making of tax, regulatory and other filings, or rendering of periodic or other
reports to governmental or other agencies having jurisdiction over the business or assets of
the Partnership;

(iii) the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or
exchange of any or all of the assets of the Partnership or the merger or other combination
of the Partnership with or into another Person;

 

27

 

(iv) the use of the assets of the Partnership (including cash on hand) for any purpose
consistent with the terms of this Agreement, including the financing of the conduct of the
operations of any Group Member, the lending of funds to other Persons (including the MLP or
any Subsidiary of the MLP), the repayment of obligations of any Group Member, the MLP or any
Subsidiary of the MLP and the making of capital contributions to any Group Member, the MLP
or any Subsidiary of the MLP.

(v) the negotiation, execution and performance of any contracts, conveyances or other
instruments (including instruments that limit the liability of the Partnership under
contractual arrangements to all or particular assets of the Partnership, with the other
party to the contract to have no recourse against the General Partner or its assets other
than its interest in the Partnership, even if same results in the terms of the transaction
being less favorable to the Partnership than would otherwise be the case);

(vi) the distribution of Partnership cash;

(vii) the selection and dismissal of employees (including employees who are Officers)
and agents, outside attorneys, accountants, consultants and contractors and the
determination of their compensation and other terms of employment or hiring;

(viii) the maintenance of such insurance for the benefit of the Partnership Group and
the Partners (including the assets of the Partnership) as it deems necessary or appropriate,

(ix) the formation of, or acquisition of an interest in, and the contribution of
property and the making of loans to, any further limited or general partnerships, joint
ventures, corporations, limited liability companies or other relationships;

(x) the control of any matters affecting the rights and obligations of the Partnership,
including the bringing and defending of actions at law or in equity and otherwise engaging
in the conduct of litigation and the incurring of legal expense and the settlement of claims
and litigation; and

(xi) the indemnification of any Person against liabilities and contingencies to the
extent permitted by law.

(c) Notwithstanding any other provision of this Agreement and the MLP Agreement, and to the
fullest extent permitted by applicable law, each of the Partners hereby (i) approves, consents to,
ratifies and confirms the General Partner’s delegation of management powers to the Board of
Supervisors pursuant to paragraph (a) of this Section 7.1; (ii) approves, consents to, ratifies and
confirms the execution, delivery and performance by the parties thereto of the Exchange Agreement
and the other agreements executed in connection therewith relating to the Partnership; (iii) agrees
that the Partnership (through any duly authorized Officer of the Partnership) is authorized to
execute, deliver and perform the agreements referred to in clause (ii) of this sentence and the
other agreements, acts, transactions and matters described in or
contemplated by the Proxy Statement without any further act, approval or vote of the Partners; and
(iv) agrees that the execution, delivery or performance by the General Partner, the MLP, the Board
of Supervisors or any member thereof, any duly authorized Officer of the Partnership, any Group
Member or any Affiliate of any of them, of this Agreement or any agreement authorized or permitted
under this Agreement, shall not constitute a breach by any such Person of any duty that any of such
Persons may owe the Partnership, a Limited Partner or any other Persons under this Agreement (or
any other agreements) or of any duty stated or implied by law or equity.

 

28

 

7.2 The Board of Supervisors; Appointment; Manner of Acting.

(a) The Board of Supervisors shall consist of those individuals who serve as members of the
board of supervisors of the MLP.

(b) Each member of the Board of Supervisors shall have one vote. The vote of the majority of
the members of the Board of Supervisors present at a meeting at which a quorum is present shall be
the act of the Board of Supervisors. A majority of the number of members of the Board of
Supervisors then in office shall constitute a quorum for the transaction of business at any meeting
of the Board of Supervisors, but if less than a quorum is present at a meeting, a majority of the
members of the Board of Supervisors present at such meeting may adjourn the meeting from time to
time, without notice other than announcement at the meeting, until a quorum shall be present.

7.3 Removal of Members of the Board of Supervisors.

Any member of the Board of Supervisors may be removed with or without Cause, by the
affirmative vote of the majority of the members of the Board of Supervisors of the MLP, but only if
such person is also removed as a member of the MLP’s Board of Supervisors; provided that his or her
successor on the MLP’s board of supervisors is elected in the manner set forth in the MLP
Agreement. If an individual who is a member of the board of supervisors of the MLP is removed from
such board, such individual will automatically be removed from the Board of Supervisors.

7.4 Resignations of Members of the Board of Supervisors.

Any member of the Board of Supervisors may resign at any time by giving written notice to the
Board of Supervisors. Such resignation shall take effect at the time specified therein, but only
if such person also resigns from the MLP’s board of supervisors. If an individual who is a member
of the board of supervisors of the MLP resigns from such board, such individual will automatically
be deemed to have resigned from the Board of Supervisors.

7.5 Vacancies on the Board of Supervisors.

If any Supervisor is removed, resigns or is otherwise unable to serve as a member of the Board
of Supervisors, or if the size of the Board of Supervisors is increased, thereby creating a
vacancy, the Board of Supervisors of the MLP shall in its sole discretion, appoint an individual to
fill the vacancy for the unexpired term of such Supervisor’s predecessor in office,
or, in connection with an increase in the size of the Board of Supervisors, for the term of such
individual on the Board of Supervisors of the MLP, who is the same individual appointed to fill the
corresponding vacancy on the MLP’s board of supervisors,

 

29

 

7.6 Meetings; Committees; Chairman.

(a) Regular meetings of the Board of Supervisors shall be held at such times and places as
shall be designated from time to time by resolution of the Board of Supervisors. Notice of such
regular meetings shall not be required. Special meetings of the Board of Supervisors may be called
by written request of a majority of the members of the Board of Supervisors, on at least 48 hours
prior written notice to the other members (which written notice may take the form of e-mail or
other electronic communication). Any such notice, or waiver thereof, need not state the purpose of
such meeting except as may otherwise be required by law. Attendance of a member of the Board of
Supervisors at a meeting (including pursuant to the penultimate sentence of this Section 7.6(a))
shall constitute a waiver of notice of such meeting, except where such member attends the meeting
for the express purpose of objecting to the transaction of any business on the ground that the
meeting is not lawfully called or convened. Any action required or permitted to be taken at a
meeting of the Board of Supervisors may be taken without a meeting, without prior notice and
without a vote if a consent or consents in writing, setting forth the action so taken, is signed by
all the members of the Board of Supervisors. Members of the Board of Supervisors may participate
in and hold meetings by means of conference telephone, videoconference or similar communications
equipment by means of which all Persons participating in the meeting can hear each other, and
participation in such meetings shall constitute presence in person at the meeting. The Board of
Supervisors may establish any additional rules governing the conduct of its meetings that are not
inconsistent with the provisions of this Agreement.

(b) The Board of Supervisors shall appoint the Audit Committee to consist solely of the
individuals who serve as the audit committee of the MLP. The Audit Committee shall perform the
functions delegated to it pursuant to the terms of this Agreement and its charter and such other
matters as may be delegated to it from time to time by resolution of the Board of Supervisors. The
Board of Supervisors, by a majority of the whole Board of Supervisors, may appoint one or more
additional committees of the Board of Supervisors to consist of one or more members of the Board of
Supervisors, which committee(s) shall have and may exercise such of the powers and authority of the
Board of Supervisors (including in respect of Section 7.1) with respect to the management of the
business and affairs of the Partnership as may be provided in a resolution of the Board of
Supervisors. Any committee designated pursuant to this Section 7.6(b) shall choose its own
chairman, shall keep regular minutes of its proceedings and report the same to the Board of
Supervisors when requested, shall fix its own rules or procedures and shall meet at such times and
at such place or places as may be provided by such rules or by resolution of such committee or
resolution of the Board of Supervisors. At every meeting of any such committee, the presence of a
majority of all the members thereof shall constitute a quorum and the affirmative vote of a
majority of the members present shall be necessary for the taking of any action. Subject to the
first sentence of this Section 7.6(b), the Board of Supervisors may designate one or more members
of the Board of Supervisors as alternate members of any committee who may replace any absent or
disqualified member at any meeting of such
committee. Subject to the first sentence of this Section 7.6(b), in the absence or
disqualification of a member of a committee, the member or members present at any meeting and not
disqualified from voting, whether or not constituting a quorum, may unanimously appoint another
member of the Board of Supervisors to act at the meeting in the place of the absent or disqualified
member.

 

30

 

(c) The Board of Supervisors may elect one of its members as Chairman or Vice Chairman of the
Board of Supervisors. The Chairman of the Board of Supervisors, if any, and if present and acting,
shall preside at all meetings of the Board of Supervisors. In the absence of the Chairman of the
Board of Supervisors, the Vice Chairman of the Board of Supervisors, if any, and if present and
acting, shall preside at all meetings of the Board of Supervisors. In the absence of the Chairman
of the Board of Supervisors and the Vice Chairman of the Board of Supervisors, the Chief Executive
Officer, if present, or if not present, the President, if present, acting and a member of the Board
of Supervisors, or any other member of the Board of Supervisors chosen by the Board of Supervisors
shall preside.

7.7 Officers.

(a) Generally. The Board of Supervisors, as set forth below, shall appoint agents of the
Partnership, referred to as ‘Officers’ of the Partnership as described in this Section 7.7. Unless
provided otherwise by resolution of the Board of Supervisors, (i) the officers of the MLP shall
hold the same position as Officers of the Partnership and (ii) the Officers shall have the titles,
power, authority and duties described below in this Section 7.7.

(b) Titles and Number. The Officers shall be the Chief Executive Officer, the President, any
and all Vice Presidents, the Secretary and any and all Assistant Secretaries and the Treasurer and
any and all Assistant Treasurers and any other Officers appointed pursuant to Section 7.7(j). Any
person may hold two or more offices.

(c) Appointment and Term of Office. The Officers shall be appointed by the Board of
Supervisors at such time and for such terms as the Board of Supervisors shall determine. Any
Officer may be removed, with or without Cause, only by the Board of Supervisors. Vacancies in any
office may be filled only by the Board of Supervisors.

(d) Chairman and Vice Chairman of the Board of Supervisors. The Board of Supervisors may elect
one of its members as the Chairman or Vice Chairman of the Board of Supervisors, provided, however,
the Chairman and Vice-Chairman shall not be “Officers” of the Partnership unless determined
otherwise by the Board of Supervisors.

(e) Chief Executive Officer. The Board of Supervisors may elect a Chief Executive Officer of
the Partnership. The Chief Executive Officer shall be responsible for the general and active
management and direction of the Partnership and shall see that all orders and resolutions of the
Board of Supervisors are carried into effect. He shall have the power and authority to sign all
contracts, certificates and other instruments of the Partnership, which may be authorized by the
Board of Supervisors. He shall have such powers, duties and authority as from time to time may be
assigned to him/her by this Agreement or by the Board of Supervisors.

 

31

 

(f) President. The Board of Supervisors may elect a President of the Partnership. Subject to
the limitations imposed by this Agreement, any employment agreement, any employee plan or any
determination of the Board of Supervisors, the President, subject to the direction of the Board of
Supervisors and the Chief Executive Officer shall be responsible for the management and direction
of the day-to-day business and affairs of the Partnership, its other Officers, employees and
agents, shall supervise generally the affairs of the Partnership and shall have full authority to
execute all documents and take all actions that the Partnership may legally take. The President
shall exercise such other powers and perform such other duties as may be assigned to him by this
Agreement, the Board of Supervisors or the Chief Executive Officer, including any duties and powers
stated in any employment agreement approved by the Board of Supervisors.

(g) Vice Presidents. Each Vice President shall perform such duties and may exercise such
powers as may from time to time be assigned to him by the Board of Supervisors, the Chief Executive
Officer or the President, including the power to execute documents on behalf of the Partnership,
within the authorization limits established from time to time by the Board of Supervisors, the
Chief Executive Officer or the President.

(h) Secretary and Assistant Secretaries. The Secretary shall record or cause to be recorded in
books provided for that purpose the minutes of the meetings or actions of the Board of Supervisors
and Partners, shall see that all notices are duly given in accordance with the provisions of this
Agreement and as required by law, shall be custodian of all records (other than financial), shall
see that the books, reports, statements, certificates and all other documents and records required
by law are properly kept and filed, and, in general, shall perform all duties incident to the
office of Secretary and such other duties as may, from time to time, be assigned to him by this
Agreement, the Board of Supervisors, the Chief Executive Officer or the President. The Assistant
Secretaries shall exercise the powers of the Secretary during that Officer’s absence or inability
or refusal to act.

(i) Treasurer and Assistant Treasurers. The Treasurer shall keep or cause to be kept the books
of account of the Partnership and shall render statements of the financial affairs of the
Partnership in such form and as often as required by this Agreement, the Board of Supervisors, the
Chief Executive Officer or the President. The Treasurer, subject to the order of the Board of
Supervisors, shall have the custody of all funds and securities of the Partnership. The Treasurer
shall perform all other duties commonly incident to his office and shall perform such other duties
and have such other powers as this Agreement, the Board of Supervisors, the Chief Executive Officer
or the President, shall designate from time to time. The Assistant Treasurers shall exercise the
power of the Treasurer during that Officer’s absence or inability or refusal to act. Each of the
Assistant Treasurers shall possess the same power as the Treasurer to sign all certificates,
contracts, obligations and other instruments of the Partnership. If no Treasurer or Assistant
Treasurer is appointed and serving or in the absence of the appointed Treasurer and Assistant
Treasurer, the Vice President and Chief Financial Officer, or such other Officer as the Board of
Supervisors shall select, shall have the powers and duties conferred upon the Treasurer.

 

32

 

(j) Other Officers and Agents. The Board of Supervisors may appoint such other Officers and
agents as may from time to time appear to be necessary or advisable in the conduct of the affairs
of the Partnership, who shall hold their offices for such terms and shall exercise such powers and
perform such duties as shall be determined from time to time by the Board of Supervisors.

(k) Powers of Attorney. The Board of Supervisors may grant powers of attorney or other
authority as appropriate to establish and evidence the authority of the Officers and other Persons.

(l) Officers’ Delegation of Authority. Unless otherwise provided by resolution of the Board of
Supervisors, no Officer shall have the power or authority to delegate to any Person such Officer’s
rights and powers as an Officer to manage the business and affairs of the Partnership.

7.8 Compensation.

The Officers shall receive such compensation for their services as may be designated by the
Board of Supervisors or a committee thereof. In addition, the Officers shall be entitled to be
reimbursed for out-of-pocket costs and expenses incurred in the course of their service hereunder.
The members of the Board of Supervisors who are not employees of the Partnership or its Affiliates
shall receive such compensation for their services as members of the Board of Supervisors or
members of a committee of the Board of Supervisors as the Board of Supervisors shall determine. In
addition, the members of the Board of Supervisors shall be entitled to be reimbursed for
out-of-pocket costs and expenses incurred in the course of their service hereunder.

7.9 Restrictions on General Partner’s and Board of Supervisors’ Authority.

(a) Except as provided in Articles XII and XIV, neither the General Partner nor the Board of
Supervisors may sell, exchange or otherwise dispose of all or substantially all of the
Partnership’s assets in a single transaction or a series of related transactions without written
approval of the specific act by the Limited Partners or by other written instrument executed and
delivered by the Limited Partners subsequent to the date of this Agreement; provided, however that
this provision shall not preclude or limit either the General Partner’s or the Board of
Supervisors’ ability to mortgage, pledge, hypothecate or grant a security interest in all or
substantially all of the assets of the Partnership Group or, in the case of the General Partner,
its general partner interest in the Partnership, and shall not apply to any forced sale of any or
all of the Partnership’s assets or the General Partner’s general partner interest in the
Partnership pursuant to the foreclosure of, or other realization upon, any such encumbrance.

(b) The Board of Supervisors may not cause the Partnership to incur any Indebtedness that is
recourse to the General Partner or any of its Affiliates without the approval of the General
Partner, which approval may be given or withheld in the General Partner’s sole discretion.

 

33

 

7.10 Reimbursement of the General Partner; Employee Benefit Plans.

(a) Except as provided in this Section 7.10 and elsewhere in this Agreement or in the MLP
Agreement, the General Partner shall not be compensated for its services as general partner of any
Group Member.

(b) The General Partner shall be reimbursed on a monthly basis, or such other basis as the
Board of Supervisors may determine, for (i) all direct and indirect expenses it incurs or payments
it makes on behalf of the Partnership (including salary, bonus, incentive compensation and other
amounts paid to any Person to perform services for the Partnership or for the General Partner or
the Board of Supervisors in the discharge of its duties to the Partnership) and (ii) all other
necessary or appropriate expenses allocable to the Partnership or otherwise reasonably incurred by
the General Partner in connection with operating the Partnership’s business (including expenses
allocated to the General Partner by its Affiliates). Reimbursements pursuant to this Section 7.10
shall be in addition to any reimbursement to the General Partner as a result of indemnification
pursuant to Section 7.13.

(c) The Board of Supervisors, in its sole discretion and without the approval of the Limited
Partners (who shall have no right to vote in respect thereof), may propose and adopt on behalf of
the Partnership employee benefit plans, employee programs and employee practices for the benefit of
the members of the Board of Supervisors, employees of the Partnership, any Group Member or any
Affiliate, or any of them, in respect of services performed, directly or indirectly, for the
benefit of the Partnership Group.

7.11 Outside Activities of the General Partner.

(a) The General Partner, for so long as it is the general partner of the Partnership, (i)
agrees that its sole business will be to act as a general partner of the Partnership and the MLP,
and any other partnership of which the Partnership or the MLP is, directly or indirectly, a partner
and to undertake activities that are ancillary or related thereto (including being a limited
partner in the MLP), and (ii) shall not enter into or conduct any business or incur any debts or
liabilities except in connection with or incidental to (A) its performance of the activities
required or authorized by this Agreement or the MLP Agreement and (B) the acquisition, ownership or
disposition of Partnership Interests or partnership interests in the MLP or any other partnership
of which the Partnership or the MLP is, directly or indirectly, a partner; provided, however, that
notwithstanding the foregoing, employees of the General Partner may perform limited services for
other Affiliates of the General Partner in addition to the Partnership and the MLP (it being
understood that full time employees of the General Partner shall devote substantially all their
employment services to the Partnership and the MLP).

 

34

 

(b) Except as described in Section 7.11(a), each Indemnitee (other than the General Partner)
shall have the right to engage in businesses of every type and description and other activities for
profit and to engage in and possess an interest in other business ventures of any and every type or
description, independently or with others, whether in the businesses engaged in by or anticipated
to be engaged in by the Partnership, the MLP, any Subsidiary of the
MLP, any Group Member or otherwise, including, without limitation, in the case of any Affiliates of
the General Partner, business interests and activities in direct competition with the business and
activities of the MLP, any Subsidiary of the MLP or any Group Member, and none of the same shall
constitute a breach of this Agreement or the MLP Agreement or any duty to the MLP, any Subsidiary
of the MLP, any Group Member or any Partner existing hereunder, under the MLP Agreement, at law, in
equity or otherwise. Neither the MLP, any Subsidiary of the MLP, any Group Member, any Limited
Partner nor any other Person shall have any rights by virtue of this Agreement, the MLP Agreement
or the partnership relationship established hereby or thereby in any business ventures of any
Indemnitee and such Indemnitees shall have no obligation to offer any interest in any such business
ventures to the MLP, any Subsidiary of the MLP, any Group Member, any Limited Partner or any other
Person. The General Partner and any Affiliates of the General Partner may acquire Partnership
Interests, and except as otherwise provided in this Agreement, shall be entitled to exercise all
rights of a Limited Partner relating to such Partnership Interests.

(c) Subject to the terms of Sections 7.11(a) and (b) but otherwise notwithstanding anything to
the contrary in this Agreement, (i) the engaging in competitive activities by any of the
Indemnitees (other than the General Partner) in accordance with Section 7.11(b) is hereby approved
by the Partnership and all Partners and (ii) it shall be deemed not to be a breach of the General
Partner’s fiduciary duties or any other obligation of any type whatsoever of the General Partner
for the General Partner to permit its Affiliates to engage, or for any such Affiliate to engage, in
business interests and activities in preference to or to the exclusion of the Partnership.

(d) The term “Affiliates” when used in this Section 7.11 with respect to the General Partner
shall not include the MLP, any Subsidiary of the MLP, or any Group Member.

7.12 Loans from the General Partner; Contracts with Affiliates; Certain Restrictions on the
General Partner.

(a) The General Partner or any Affiliate of the General Partner may lend to any Group Member,
and any Group Member may borrow from the General Partner and any Affiliate of the General Partner,
funds needed or desired by the Group Member, for such periods of time and in such amounts as the
General Partner may determine; provided, however, that in any such case the lending party may not
charge the borrowing party interest at a rate greater than the rate that would be charged the
borrowing party or impose terms less favorable on the borrowing party than would be charged or
imposed on the borrowing party by unrelated lenders on comparable loans made on an arms-length
basis (without reference to the lending party’s financial abilities or guarantees). The borrowing
party shall reimburse the lending party for any costs (other than any additional interest costs)
incurred by the lending party in connection with the borrowing of such funds. For purposes of this
Section 7.12(a) and Section 7.12(b), the term “Group Member” shall include any Affiliate of the
Group Member that is controlled by the Group Member. No Group Member may lend funds to the General
Partner or any of its Affiliates; provided, however, that notwithstanding the foregoing, any Group
Member may lend funds to the MLP, any Subsidiary of the MLP or another Group Member.

 

35

 

(b) The Partnership may lend or contribute to the MLP, any Subsidiary of the MLP, or any Group
Member, and any Group Member may borrow from the MLP, any Subsidiary of the MLP or the Partnership,
funds on terms and conditions established by the Board of Supervisors; provided, however, that the
Partnership may not charge the MLP, any Subsidiary of the MLP or a Group Member interest at a rate
greater than the rate that would be charged to the MLP, any Subsidiary of the MLP or such Group
Member (without reference to the General Partner’s financial abilities or guarantees), by unrelated
lenders on comparable loans. The foregoing authority shall be exercised by the Board of
Supervisors and shall not create any right or benefit in favor of the MLP, any Subsidiary of the
MLP, any Group Member or any other Person.

(c) The General Partner may itself, or may enter into an agreement with any of its Affiliates
to, render services to a Group Member. Any services rendered to a Group Member by the General
Partner or any of its Affiliates shall be on terms that are fair and reasonable to the Partnership;
provided, however, that the requirements of this Section 7.12(c) shall be deemed satisfied as to
(i) any transaction approved by Special Approval, (ii) any transaction, the terms of which are no
less favorable to the Partnership Group than those generally being provided to or available from
unrelated third parties or (iii) any transaction that, taking into account the totality of the
relationships between the parties involved (including other transactions that may be particularly
favorable or advantageous to the Partnership Group), is equitable to the Partnership Group. The
provisions of Section 7.10 shall apply to the rendering of services described in this Section
7.12(c).

(d) The Partnership may transfer assets to joint ventures, other partnerships, corporations,
limited liability companies or other business entities in which it is or thereby becomes a
participant upon such terms and subject to such conditions as are consistent with this Agreement
and applicable law.

(e) Neither the General Partner nor any of its Affiliates shall sell, transfer or convey any
property to, or purchase any property from, the Partnership, directly or indirectly, except
pursuant to transactions that are fair and reasonable to the Partnership; provided, however, that
the requirements of this Section 7.12(e) shall be deemed to be satisfied as to (i) the transactions
effected pursuant to the Exchange Agreement, (ii) any transaction approved by Special Approval,
(iii) any transaction, the terms of which are no less favorable to the Partnership than those
generally being provided to or available from unrelated third parties, or (iv) any transaction
that, taking into account the totality of the relationships between the parties involved (including
other transactions that may be particularly favorable or advantageous to the Partnership), is
equitable to the Partnership.

(f) The General Partner and its Affiliates will have no obligation to permit any Group Member
to use any facilities or assets of the General Partner and its Affiliates, except as may be
provided in contracts entered into from time to time specifically dealing with such use, nor shall
there be any obligation on the part of the General Partner or its Affiliates to enter into such
contracts.

 

36

 

7.13 Indemnification.

(a) To the fullest extent permitted by law but subject to the limitations expressly provided
in this Agreement, all Indemnitees shall be indemnified and held harmless by the Partnership from
and against any and all losses, claims, damages, liabilities, joint or several, expenses (including
legal fees, expenses and other disbursements), judgments, fines, penalties, interest, settlements
and other amounts arising from any and all claims, demands, actions, suits or proceedings, whether
civil, criminal, administrative or investigative, in which any Indemnitee may be involved, or is
threatened to be involved, as a party or otherwise, by reason of its status as an Indemnitee,
provided, that in each case the Indemnitee acted in good faith and in a manner that such Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the Partnership and, with
respect to any criminal proceeding, had no reasonable cause to believe its conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction or
upon a plea of nolo contendere, or its equivalent, shall not create a presumption that the
Indemnitee acted in a manner contrary to that specified above. Any indemnification pursuant to
this Section 7.13 shall be made only out of the assets of the Partnership, it being agreed that the
General Partner shall not be personally liable for such indemnification and shall have no
obligation to contribute or loan any monies or property to the Partnership to enable it to
effectuate such indemnification.

(b) To the fullest extent permitted by law, expenses (including legal fees, expenses and other
disbursements) incurred by an Indemnitee who is indemnified pursuant to Section 7.13(a) in
defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by
the Partnership prior to the final disposition of such claim, demand, action, suit or proceeding
upon receipt by the Partnership of any undertaking by or on behalf of the Indemnitee to repay such
amount if it shall be determined by a final, non-appealable order of a court of competent
jurisdiction that the Indemnitee is not entitled to be indemnified as authorized in this Section
7.13.

(c) The indemnification provided by this Section 7.13 shall be in addition to any other rights
to which an Indemnitee may be entitled under any agreement, pursuant to any vote of the Partners,
as a matter of law or otherwise, both as to actions in the Indemnitee’s capacity as an Indemnitee
and as to actions in any other capacity, and shall continue as to an Indemnitee who has ceased to
serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and
administrators of the Indemnitee.

(d) The Partnership may purchase and maintain (or reimburse the members of the Board of
Supervisors, the General Partner or its Affiliates for the cost of) insurance, on behalf of the
General Partner and the members of the Board of Supervisors and such other Persons as the Board of
Supervisors shall determine, against any liability that may be asserted against or expense that may
be incurred by such Person in connection with the Partnership’s activities, regardless of whether
the Partnership would have the power to indemnify such Person against such liability under the
provisions of this Agreement.

 

37

 

(e) For purposes of this Section 7.13, the Partnership shall be deemed to have requested an
Indemnitee to serve as fiduciary of an employee benefit plan whenever the
performance by it of its duties to the Partnership also imposes duties on, or otherwise involves
services by, it to the plan or participants or beneficiaries of the plan; excise taxes assessed on
an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute
“fines” within the meaning of Section 7.13(a); and action taken or omitted by it with respect to
any employee benefit plan in the performance of its duties for a purpose reasonably believed by it
to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a
purpose which is in, or not opposed to, the best interests of the Partnership.

(f) In no event may an Indemnitee subject any Limited Partner to personal liability by reason
of the indemnification provisions set forth in this Agreement.

(g) An Indemnitee shall not be denied indemnification in whole or in part under this Section
7.13 because the Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

(h) The provisions of this Section 7.13 are for the benefit of the Indemnitees, their heirs,
successors, assigns and administrators and shall not be deemed to create any rights for the benefit
of any other Persons.

(i) No amendment, modification or repeal of this Section 7.13 or any provision hereof shall in
any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be
indemnified by the Partnership, nor the obligations of the Partnership to indemnify any such
Indemnitee under and in accordance with the provisions of this Section 7.13 as in effect
immediately prior to such amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such claims may arise or be asserted.

7.14 Liability of Indemnitees.

(a) Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall
be liable for monetary damages to the Partnership, any Limited Partner or any other Persons who
have acquired interests in the Partnership, for losses sustained or liabilities incurred as a
result of errors in judgment or any act or omission if such Indemnitee acted in good faith pursuant
to authority granted in this Agreement.

(b) To the maximum extent permitted by law, the General Partner and its Affiliates shall not
be responsible for any act or omission by the Board of Supervisors, any member of the Board of
Supervisors, or any Officers of the Partnership.

(c) To the maximum extent permitted by law, the members of the Board of Supervisors and the
Officers of the Partnership shall not be responsible for any act or omission by the General Partner
and its Affiliates.

(d) Subject to its obligations and duties set forth in Section 7.1(a), the Board of
Supervisors may exercise any of the powers granted to it by this Agreement and perform any
of the duties imposed upon it hereunder either directly or by or through the Officers or other
agents of the Partnership, and, to the maximum extent permitted by law, the Board of Supervisors
shall not be responsible for any misconduct or negligence on the part of any such Officer or agent
appointed by the Board of Supervisors in good faith.

 

38

 

(e) It will not constitute a breach of fiduciary or other duty for an Officer or member of the
Board of Supervisors to engage attorneys, accountants, engineers and other advisors on behalf of
the Partnership, its Board of Supervisors, or any committee thereof, even though such persons may
also be retained from time to time by the General Partner or any of its Affiliates, and such
persons may be engaged with respect to any matter in which the interests of the Partnership and the
General Partner or any of its Affiliates may differ, or may be engaged by both the Partnership and
the General Partner or any of its Affiliates with respect to a matter, as long as such Officer or
member of the Board of Supervisors reasonably believes that any conflict between the Partnership
and the General Partner or any of its Affiliates with respect to such matter is not material; and

(f) Any amendment, modification or repeal of this Section 7.14 or any provision hereof shall
be prospective only and shall not in any way affect the limitations on the liability to the
Partnership and the Limited Partner, of the General Partner, its directors, officers and employees
and any other Indemnitees under this Section 7.14 as in effect immediately prior to such amendment,
modification or repeal with respect to claims arising from or relating to matters occurring, in
whole or in part, prior to such amendment, modification or repeal, regardless of when such claims
may arise or be asserted.

7.15 Resolution of Conflicts of Interest.

(a) Unless otherwise expressly provided in this Agreement or the MLP Agreement, whenever a
potential conflict of interest exists or arises between the General Partner or any of its
Affiliates, or any Officer or member of the Board of Supervisors, on the one hand, and the
Partnership, the MLP, or any Partner, on the other, any resolution or course of action in respect
of such conflict of interest shall be permitted and deemed approved by the Limited Partners, and
shall not constitute a breach of this Agreement, of the MLP Agreement, or of any agreement
contemplated herein or therein, or of any duty stated or implied by law or equity, if the
resolution or course of action is, or by operation of this Agreement is deemed to be, fair and
reasonable to the Partnership. The Board of Supervisors shall be authorized but not required in
connection with its resolution of such conflict of interest to seek Special Approval of a
resolution of such conflict or course of action. Any conflict of interest and any resolution of
such conflict of interest shall be conclusively deemed fair and reasonable to the Partnership if
such conflict of interest or resolution is (i) approved by Special Approval (as long as the
material facts known to the General Partner or any of its Affiliates or such Officer or member of
the Board of Supervisors regarding any proposed transaction were disclosed to the Audit Committee
at the time it gave its approval), (ii) on terms no less favorable to the Partnership than those
generally being provided to or available from unrelated third parties or (iii) fair to the
Partnership, taking into account the totality of the relationships between the parties involved
(including other transactions that may be particularly favorable or advantageous to the
Partnership). The Board of Supervisors may also adopt a resolution or course of action that has
not received Special Approval. The Board of

 

39

 

Supervisors (including the Audit Committee in connection with Special
Approval) shall be authorized in connection with its determination of what is “fair and reasonable”
to the Partnership and in connection with its resolution of any conflict of interest to consider
(A) the relative interests of any party to such conflict, agreement, transaction or situation and
the benefits and burdens relating to such interest; (B) any customary or accepted industry
practices and any customary or historical dealings with a particular Person; (C) any applicable
generally accepted accounting practices or principles; and (D) such additional factors as the Board
of Supervisors (including the Audit Committee) determines in its discretion to be relevant,
reasonable or appropriate under the circumstances. Nothing contained in this Agreement, however,
is intended to nor shall it be construed to require the Board of Supervisors (including the Audit
Committee) to consider the interests of any Person other than the Partnership. In the absence of
bad faith by the Board of Supervisors, the resolution, action or terms so made, taken or provided
by the Board of Supervisors with respect to such matter shall not constitute a breach of this
Agreement, the MLP Agreement or any other agreement contemplated herein or therein or a breach of
any standard of care or duty imposed herein or therein or, to the extent permitted by law, under
the Delaware Act or any other law, rule or regulation or existing in equity or otherwise.

(b) Whenever this Agreement or any other agreement contemplated hereby provides that the Board
of Supervisors is permitted or required to make a decision (i) in its “sole discretion,” or
“discretion” or that it deems “necessary or appropriate” or “necessary or advisable” or under a
grant of similar authority or latitude, except as otherwise provided herein, the Board of
Supervisors shall make such decision in its sole discretion (regardless of whether there is a
reference to “sole discretion” or “discretion”) unless another express standard is provided for or
(ii) in “good faith” or under another express standard, the Board of Supervisors shall act under
such express standard and shall not be subject to any other or different standards imposed by this
Agreement, the MLP Agreement, any other agreement contemplated hereby or under the Delaware Act or
any other law, rule or regulation or in equity or otherwise. In addition, any actions taken by the
Board of Supervisors consistent with the standards of “reasonable discretion” set forth in the
definition of Available Cash shall not constitute a breach of any duty of the Board of Supervisors
to the Partnership, the Limited Partners or any partner of the MLP. The Board of Supervisors shall
have no duty, express or implied, to sell or otherwise dispose of any asset of the Partnership
Group.

(c) Whenever a particular transaction, arrangement or resolution of a conflict of interest is
required under this Agreement to be “fair and reasonable” to any Person, the fair and reasonable
nature of such transaction, arrangement or resolution shall be considered in the context of all
similar or related transactions.

(d) The Limited Partners hereby authorize the Board of Supervisors on behalf of the
Partnership as a partner of a Group Member, to approve of actions by the General Partner or the
board of supervisors of such Group Member similar to those actions permitted to be taken by the
Board of Supervisors pursuant to this Section 7.15.

 

40

 

7.16 Other Matters Concerning the General Partner and the Board of Supervisors.

(a) The General Partner and the Board of Supervisors may rely and shall be protected in acting
or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, bond, debenture or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties.

(b) The General Partner and the Board of Supervisors may consult with legal counsel,
accountants, appraisers, management consultants, investment bankers and other consultants and
advisers selected by either of them, and any act taken or omitted to be taken in reliance upon the
opinion (including an Opinion of Counsel) of such Persons as to matters that the General Partner or
the Board of Supervisors reasonably believes to be within such Person’s professional or expert
competence shall be conclusively presumed to have been done or omitted in good faith and in
accordance with such opinion.

(c) The General Partner shall have the right, in respect of any of its powers or obligations
hereunder, to act through any of its duly authorized officers, a duly appointed attorney or
attorneys-in-fact or the duly authorized Officers of the Partnership.

(d) The Board of Supervisors shall have the right, in respect of any of its powers or
obligations hereunder, to act through any of the duly authorized Officers of the Partnership or a
duly appointed attorney or attorneys-in-fact.

(e) Any standard of care and duty imposed by this Agreement or under the Delaware Act or any
applicable law, rule or regulation, or in equity or otherwise shall be modified, waived or limited,
to the maximum extent permitted by law, as required to permit the General Partner and the Board of
Supervisors to act under this Agreement or any other agreement contemplated by this Agreement and
to make any decision pursuant to the authority prescribed in this Agreement, so long as such action
is reasonably believed by the General Partner or the Board of Supervisors to be in, or not
inconsistent with, the best interests of the Partnership.

 

41

 

7.17 Reliance by Third Parties.

Notwithstanding anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the Board of Supervisors and any Officer of the
Partnership authorized by the Board of Supervisors to act on behalf of and in the name of the
Partnership (including the General Partner, acting pursuant to the direction of the Board of
Supervisors in accordance with Section 7.1(a)) has full power and authority to encumber, sell or
otherwise use in any manner any and all assets of the Partnership and to enter into any contracts
on behalf of the Partnership, and such Person shall be entitled to deal with the Board of
Supervisors or any such Officer (including the General Partner, acting pursuant to the direction of
the Board of Supervisors in accordance with Section 7.1(a)) as if it were the Partnership’s sole
party in interest, both legally and beneficially. The Limited Partner hereby waives, to the
maximum extent permitted by law, any and all defenses or other remedies that may be available
against such Person to contest, negate or disaffirm any action of the Board of Supervisors or any
such Officer (including the General Partner, acting pursuant to the direction of the Board of
Supervisors in accordance with Section 7.1(a)) in connection with any such dealing. In no event
shall any Person dealing with the Board of Supervisors or its representatives or any such Officer
(including the General Partner, acting pursuant to the direction of the Board of Supervisors in
accordance with Section 7.1(a)) be obligated to ascertain that the terms of the Agreement have been
complied with or to inquire into the necessity or expedience of any act or action of the Board of
Supervisors or its representatives or any such Officer (including the General Partner, acting
pursuant to the direction of the Board of Supervisors in accordance with Section 7.1(a)). Each and
every certificate, document or other instrument executed on behalf of the Partnership by the Board
of Supervisors or its representatives or any such Officer (including the General Partner, acting
pursuant to the direction of the Board of Supervisors in accordance with Section 7.1 (a)) or shall
be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that
(a) at the time of the execution and delivery of such certificate, document or instrument, this
Agreement was in full force and effect, (b) the Person executing and delivering such certificate,
document or instrument was duly authorized and empowered to do so for and on behalf of the
Partnership and (c) such certificate, document or instrument was duly executed and delivered in
accordance with the terms and provisions of this Agreement and is binding upon the Partnership.

ARTICLE VIII

Books, Records, Accounting and Reports

8.1 Records and Accounting.

The Partnership shall keep or cause to be kept at the principal office of the Partnership
appropriate books and records with respect to the Partnership’s business, including all books and
records necessary to provide to the Limited Partners any information required to be provided
pursuant to Section 3.3(a). Any books and records maintained by or on behalf of the Partnership in
the regular course of its business, including books of account and records of Partnership
proceedings, may be kept on, or be in the form of, computer disks, hard drives, punch cards,
magnetic tape, photographs, micrographics or any other information storage device, provided, that
the books and records so maintained are convertible into clearly legible written form within a
reasonable period of time. The books of the Partnership shall be maintained, for financial
reporting purposes, on an accrual basis in accordance with U.S. GAAP.

8.2 Fiscal Year.

The fiscal year of the Partnership shall be a 52-53 week fiscal year concluding on the last
Saturday in September.

 

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ARTICLE IX

Tax Matters

9.1 Tax Returns and Information.

The Partnership shall timely file all returns of the Partnership that are required for
federal, state and local income tax purposes on the basis of the accrual method and a taxable year
ending on December 31. The tax information reasonably required by the Partners for federal and
state income tax reporting purposes with respect to a taxable year shall be furnished to them
within 90 days of the close of the calendar year in which the Partnership’s taxable year ends. The
classification, realization and recognition of income, gain, losses and deductions and other items
shall be on the accrual method of accounting for federal income tax purposes.

9.2 Tax Elections.

(a) The Partnership has made the election under Section 754 of the Code in accordance with
applicable regulations thereunder, subject to the reservation of the right to seek to revoke such
election upon the Board of Supervisors’ determination that such revocation is in the best interests
of the Limited Partners.

(b) The Partnership has elected to deduct expenses incurred in organizing the Partnership
ratably over a sixty-month period as provided in Section 709 of the Code.

(c) Except as otherwise provided herein, the Board of Supervisors shall determine whether the
Partnership should make any other elections permitted by the Code.

9.3 Tax Controversies.

Subject to the provisions hereof, the General Partner is designated as the Tax Matters Partner
(as defined in Section 6231(a)(7) of the Code) and is authorized and required to represent the
Partnership (at the Partnership’s expense) in connection with all examinations of the Partnership’s
affairs by tax authorities, including resulting administrative and judicial proceedings, and to
expend Partnership funds for professional services and costs associated therewith. Each Partner
agrees to cooperate with the General Partner and to do or refrain from doing any or all things
reasonably required by the General Partner to conduct such proceedings.

9.4 Withholding.

Notwithstanding any other provision of this Agreement, the Board of Supervisors is authorized
to take any action that it determines in its discretion to be necessary or appropriate to cause the
Partnership to comply with any withholding requirements established under the Code or any other
federal, state or local law including, without limitation, pursuant to Sections 1441, 1442, 1445
and 1446 of the Code. To the extent that the Partnership is required or elects to withhold and pay
over to any taxing authority any amount resulting from the allocation or distribution of income to
any Partner (including, without limitation, by reason of Section 1446 of
the Code), the amount withheld may be treated as a distribution of cash pursuant to Section 6.4 in
the amount of such withholding from such Partner.

 

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ARTICLE X

Admission of Partners

10.1 Current Partners.

The General Partner and the MLP and Suburban LP, each as a Limited Partner, are the current
Partners of the Partnership as of the date of this Agreement.

10.2 Admission of Substituted Limited Partners.

Any Person that is the successor in interest to a Limited Partner as described in Section 4.3
shall be admitted to the Partnership as a Limited Partner upon (a) furnishing to the Board of
Supervisors (i) written acceptance of all of the terms and conditions of this Agreement and (ii)
such other documents or instruments as may be required by law to effect its admission as a Limited
Partner in the Partnership and (b) except in the case of the foreclosure of a pledge referred to in
Section 4.3, obtaining the consent of the Board of Supervisors, which consent may be given or
withheld in the Board of Supervisors’ sole discretion. Such Person shall be admitted to the
Partnership as a Limited Partner effective immediately prior to the transfer of the Partnership
Interest, and the business of the Partnership shall continue without dissolution.

10.3 Admission of Successor General Partner.

A successor General Partner approved pursuant to Section 11.1 or 11.2 or the transferee of or
successor to all of the General Partner’s Partnership Interest as a general partner in the
Partnership pursuant to Section 4.2 shall, subject to compliance with the terms of Section 11.3, if
applicable, be admitted to the Partnership as the General Partner, effective simultaneously with
the withdrawal or removal of the General Partner pursuant to Section 11.1 or 11.2 or the transfer
of the General Partner’s Partnership Interest as a general partner in the Partnership pursuant to
Section 4.2; provided, however, that no such successor shall be admitted to the Partnership until
compliance with the terms of Section 4.2, if applicable, has occurred and such successor has
executed and delivered written acceptance of all of the terms and conditions of this Agreement and
such other documents or instruments as may be required by law to effect such admission. Any such
successor is hereby authorized to and shall, subject to the terms hereof, carry on the business of
the Partnership without dissolution. The admission of a successor General Partner shall not be
deemed to have affected in any manner the irrevocable delegation of all management powers over the
business and affairs of the Partnership to the Board of Supervisors pursuant to Section 7.1(a). At
no time shall the Partnership have more than one general partner.

 

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10.4 Admission of Additional Limited Partners.

(a) A Person (other than the General Partner, the MLP or a Substituted Limited Partner) who
makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted
to the Partnership as an Additional Limited Partner only upon (A) furnishing to the Board of
Supervisors (i) evidence of acceptance in form satisfactory to the Board of Supervisors of all of
the terms and conditions of this Agreement, including the granting of the power of attorney granted
in Section 2.6, and (ii) such other documents or instruments as may be required in the discretion
of the Board of Supervisors to effect such Person’s admission as an Additional Limited Partner and
(B) if at such time, any of the Partnership Interest of the Limited Partners are pledged to secure
indebtedness of the Partnership or the MLP, such Additional Limited Partner granting a similar
pledge of its Partnership Interest to the holders of such indebtedness.

(b) Notwithstanding anything to the contrary in this Section 10.4, no Person shall be admitted
as an Additional Limited Partner without the consent of the Board of Supervisors, which consent may
be given or withheld in the Board of Supervisors’ discretion. The admission of any Person as an
Additional Limited Partner shall become effective on the date upon which the name of such Person is
recorded as such in the books and records of the Partnership, following the consent of the Board of
Supervisors to such admission.

10.5 Amendment of Agreement and Certificate of Limited Partnership.

To effect the admission to the Partnership of any Partner, the Board of Supervisors shall take
all steps necessary and appropriate under the Delaware Act to amend the records of the Partnership
to reflect such admission and, if necessary, to prepare as soon as practicable an amendment to this
Agreement and, if required by law, the General Partner shall prepare and file an amendment to the
Certificate of Limited Partnership, and the Chief Executive Officer and President may for this
purpose, among others, exercise the power of attorney granted pursuant to Section 2.6.

ARTICLE XI

Withdrawal or Removal of Partners

11.1 Withdrawal of the General Partner.

(a) The General Partner shall be deemed to have withdrawn from the Partnership upon the
occurrence of any one of the following events (each such event herein referred to as an “Event of
Withdrawal”):

(i) the General Partner voluntarily withdraws from the Partnership (of which event the
General Partner shall give written notice to the Limited Partners);

(ii) the General Partner transfers all of its rights as General Partner pursuant to
Section 4.2; provided, however, that the pledge (but not any related foreclosure) referred
to in Section 4.2 shall not be deemed an Event of Withdrawal;

 

45

 

(iii) the General Partner is removed pursuant to Section 11.2;

(iv) the general partner of the MLP withdraws from, or is removed as the general
partner of, the MLP;

(v) the General Partner (A) makes a general assignment for the benefit of creditors;
(B) files a voluntary bankruptcy petition for relief under Chapter 7 of the United States
Bankruptcy Code; (C) files a petition or answer seeking for itself a liquidation,
dissolution or similar relief (but not a reorganization) under any law; (D) files an answer
or other pleading admitting or failing to contest the material allegations of a petition
filed against the General Partner in a proceeding of the type described in clauses (A)-(C)
of this Section 11.1(a)(v); or (E) seeks, consents to or acquiesces in the appointment of a
trustee (but not a debtor in possession), receiver or liquidator of the General Partner or
of all or any substantial part of its properties;

(vi) a final and non-appealable order of relief under Chapter 7 of the United States
Bankruptcy Code is entered by a court with appropriate jurisdiction pursuant to a voluntary
or involuntary petition by or against the General Partner;

(vii) a certificate of dissolution or its equivalent is filed for the General Partner,
or 90 days expire after the date of notice to the General Partner of revocation of its
charter without a reinstatement of its charter, under the laws of its state of incorporation
or formation; or

(viii) (A) in the event the General Partner is a corporation, a certificate of
dissolution or its equivalent is filed for the General Partner, or 90 days expire after the
date of notice to the General Partner of revocation of its charter without a reinstatement
of its charter, under the laws of its state of incorporation; (B) in the event the General
Partner is a partnership or a limited liability company, the dissolution and commencement of
winding up of the General Partner; (C) in the event the General Partner is acting in such
capacity by virtue of being a trustee of a trust, the termination of the trust; (D) in the
event the General Partner is a natural person, his death or adjudication of incompetency;
and (E) otherwise in the event of the termination of the General Partner.

If an Event of Withdrawal specified in Section 11.1(a)(iv) (with respect to withdrawal), (v), (vi),
(vii) or (viii) (A), (B), (C) or (E) occurs, the withdrawing General Partner shall give notice to
the Limited Partners within 30 days after such occurrence. The Partners hereby agree that only the
Events of Withdrawal described in this Section 11.1 shall result in the withdrawal of the General
Partner from the Partnership.

 

46

 

(b) Withdrawal of the General Partner from the Partnership upon the occurrence of an Event of
Withdrawal shall not constitute a breach of this Agreement under the following circumstances: (i)
at any time during the period beginning on March 5, 1996 and ending at 12:00 midnight, Eastern
Standard Time, on September 30, 2006, the General Partner voluntarily withdraws by giving at least
90 days advance notice of its intention to withdraw to the Limited Partners; provided that prior to
the effective date of such withdrawal, the Limited Partners approve such withdrawal and the General
Partner delivers to the Partnership an Opinion of Counsel (“Withdrawal Opinion of Counsel”) that
such withdrawal (following the selection of the successor General Partner) would not result in the
loss of the limited liability of any Limited Partner or of any limited partner of the MLP, limited
partner of any Group Member or cause the MLP or the Partnership to be treated as an association
taxable as a corporation or otherwise to be taxed as an entity for federal income tax purposes;
(ii) at any time after 12:00 midnight, Eastern Standard Time, on September 30, 2006, the General
Partner voluntarily withdraws by giving at least 90 days’ advance notice to the Limited Partners,
such withdrawal to take effect on the date specified in such notice; or (iii) at any time that the
General Partner ceases to be the General Partner pursuant to Section 11.1 (a)(ii), (iii) or (iv).
If the General Partner gives a notice of withdrawal pursuant to Section 11.1 (a)(i) or Section 11.1
(a)(i) of the MLP Agreement, the Limited Partners may, prior to the effective date of such
withdrawal or removal, elect a successor General Partner that is hereby authorized to and shall
continue the business of the Partnership without dissolution; provided, however, that such
successor shall be the same Person, if any, that is elected by the limited partners of the MLP
pursuant to Section 11.1 of the MLP Agreement as the successor to the General Partner in its
capacity as general partner of the MLP. If, prior to the effective date of the General Partner’s
withdrawal, a successor is not selected by the Limited Partners as provided herein or the
Partnership does not receive a Withdrawal Opinion of Counsel, the Partnership shall be dissolved in
accordance with Section 12.1. Any successor General Partner elected in accordance with the terms
of this Section 11.1 shall be subject to the provisions of Section 10.3.

11.2 Removal of the General Partner.

The General Partner shall be removed if such General Partner is removed as a general partner
of the MLP pursuant to Section 11.2 of the MLP Agreement. Such removal shall be effective
concurrently with the effectiveness of the removal of such General Partner as the general partner
of the MLP pursuant to the terms of the MLP Agreement. If a successor General Partner is elected
in connection with the removal of such General Partner as a general partner of the MLP, such
successor General Partner shall, upon admission pursuant to Article X, automatically become a
successor General Partner of the Partnership and is hereby authorized to and shall continue the
business of the Partnership without dissolution. The admission of any such successor General
Partner to the Partnership shall be subject to the provisions of Section 10.3.

 

47

 

11.3 Interest of Departing Partner and Successor General Partner; Delegation of Authority to
the Board of Supervisors by Successor General Partner.

(a) The Partnership Interest of a Departing Partner departing as a result of withdrawal or
removal pursuant to Section 11.1 or 11.2 shall be purchased by the successor to
the Departing Partner for cash in the manner specified in the MLP Agreement for consideration of
$10. Such purchase shall be a condition to the admission to the Partnership of the successor as the
General Partner. Any successor General Partner shall indemnify the Departing Partner as to all
debts and liabilities of the Partnership arising on or after the effective date of the withdrawal
or removal of the Departing Partner. In the event of a foreclosure referred to in Section 4.2, the
successor General Partner shall have no obligations under this Section 11.3(a) to the Departing
Partner.

(b) The Departing Partner shall be entitled to receive all reimbursements due such Departing
Partner pursuant to Section 7.10, including any employee-related liabilities (including severance
liabilities), incurred in connection with the termination of any employees employed by such
Departing Partner for the benefit of the Partnership or the other Group Members.

(c) Any successor General Partner will be deemed to have delegated irrevocably to the Board of
Supervisors all management powers over the business and affairs of the Partnership to the same
extent that the General Partner delegated such management powers to the Board of Supervisors
pursuant to Section 7.1 of this Agreement.

11.4 Withdrawal of the Limited Partner.

Without the prior written consent of the General Partner, which may be granted or withheld in
its sole discretion, and except as provided in Section 10.1, no Limited Partner shall have the
right to withdraw from the Partnership.

ARTICLE XII

Dissolution and Liquidation

12.1 Dissolution.

The Partnership shall not be dissolved by the admission of Substituted Limited Partners or
Additional Limited Partners or by the admission of a successor General Partner in accordance with
the terms of this Agreement. Upon the removal or withdrawal of the General Partner, if a successor
General Partner is elected pursuant to Section 10.3, 11.1 or 11.2 or this Section 12.1, the
Partnership shall not be dissolved and such successor General Partner is hereby authorized to and
shall continue the business of the Partnership. The Partnership shall dissolve, and its affairs
shall be wound up, upon:

(a) the expiration of its term as provided in Section 2.7;

(b) an Event of Withdrawal of the General Partner as provided in Section 11.1(a) (other than
Section 11.1(a)(ii)), unless a successor is elected and an Opinion of Counsel is received as
provided in Section 11.1(b) or 11.2 and such successor is admitted to the Partnership pursuant to
Section 10.3; or for Events of Withdrawal of the General Partner for
which the appointment of a successor General Partner is not provided for hereunder, unless the
Partnership is continued without dissolution in accordance with the Delaware Act;

 

48

 

(c) an election to dissolve the Partnership by the General Partner that is approved by all of
the Limited Partners;

(d) the entry of a decree of judicial dissolution of the Partnership pursuant to the
provisions of the Delaware Act;

(e) the sale of all or substantially all of the assets and properties of the Partnership
Group;

(f) the dissolution of the MLP; or

(g) at any time that there are no limited partners of the Partnership, unless the Partnership
is continued without dissolution pursuant to the Delaware Act.

12.2 [Intentionally omitted].

12.3 Liquidator.

Upon dissolution of the Partnership, the Board of Supervisors shall select one or more Persons
to act as Liquidator. The Liquidator shall be entitled to receive such compensation for its
services as may be approved by all of the Limited Partners. The Liquidator shall agree not to
resign at any time without 15 days’ prior notice and may be removed at any time, with or without
cause, by notice of removal approved by the all of Limited Partners. Upon dissolution, removal or
resignation of the Liquidator, a successor and substitute Liquidator (who shall have and succeed to
all rights, powers and duties of the original Liquidator) shall within 30 days thereafter be
approved by the all of Limited Partners. The right to approve a successor or substitute Liquidator
in the manner provided herein shall be deemed to refer also to any such successor or substitute
Liquidator approved in the manner herein provided. Except as expressly provided in this Article
XII, the Liquidator approved in the manner provided herein shall have and may exercise, without
further authorization or consent of any of the parties hereto, all of the powers conferred upon the
Board of Supervisors under the terms of this Agreement (but subject to all of the applicable
limitations, contractual and otherwise, upon the exercise of such powers, other than the limitation
on sale set forth in Section 7.9(a)) to the extent necessary or desirable in the good faith
judgment of the Liquidator to carry out the duties and functions of the Liquidator hereunder for
and during such period of time as shall be reasonably required in the good faith judgment of the
Liquidator to complete the winding up and liquidation of the Partnership as provided for herein.

 

49

 

12.4 Liquidation.

The Liquidator shall proceed to dispose of the assets of the Partnership, discharge its
liabilities, and otherwise wind up its affairs in such manner and over such period as the
Liquidator determines to be in the best interest of the Partners, subject to Section 17-804 of the
Delaware Act and the following:

(a) Disposition of Assets. The assets may be disposed of by public or private sale or by
distribution in kind to one or more Partners on such terms as the Liquidator and such Partner or
Partners may agree. If any property is distributed in kind, the Partner receiving the property
shall be deemed for purposes of Section 12.4(c) to have received cash equal to its fair market
value; and contemporaneously therewith, appropriate cash distributions must be made to the other
Partners. Under certain circumstances and subject to certain limitations, the Liquidator may defer
liquidation or distribution of the Partnership’s assets for a reasonable time or distribute assets
to the Partners in kind if it determines that a sale would be impractical or would cause undue loss
to the Partners.

(b) Discharge of Liabilities. Liabilities of the Partnership include amounts owed to Partners
otherwise than in respect of their distribution rights under Article VI. With respect to any
liability that is contingent or is otherwise not yet due and payable, the Liquidator shall either
settle such claim for such amount as it thinks appropriate or establish a reserve of cash or other
assets to provide for its payment. When paid, any unused portion of the reserve shall be
distributed as additional liquidation proceeds.

(c) Liquidation Distributions. All property and all cash in excess of that required to
discharge liabilities as provided in Section 12.4(b) shall be distributed to the Partners in
accordance with, and to the extent of, the positive balances in their respective Capital Accounts,
as determined after taking into account all Capital Account adjustments (other than those made by
reason of distributions pursuant to this Section 12.4(c)) for the taxable year of the Partnership
during which the liquidation of the Partnership occurs (with such date of occurrence being
determined pursuant to Treasury Regulation, Section 1.704-1(b)(2)(ii)(g)), and such distribution
shall be made by the end of such taxable year (or, if later, within 90 days after said date of such
occurrence).

12.5 Cancellation of Certificate of Limited Partnership.

Upon the completion of the distribution of Partnership cash and property as provided in
Section 12.4 in connection with the liquidation of the Partnership, the Certificate of Limited
Partnership and all qualifications of the Partnership as a foreign limited partnership in
jurisdictions other than the State of Delaware shall be canceled and such other actions as may be
necessary to terminate the Partnership shall be taken.

12.6 Return of Capital Contributions.

The General Partner shall not be personally liable for, and shall have no obligation to
contribute or loan any monies or property to the Partnership to enable it to effectuate, the return
of the Capital Contributions of any Limited Partner, or any portion thereof, it being expressly
understood that any such return shall be made solely from Partnership assets.

 

50

 

12.7 Waiver of Partition.

To the maximum extent permitted by law, each Partner hereby waives any right to partition of
the Partnership property.

12.8 Capital Account Restoration.

No Limited Partner shall have any obligation to restore any negative balance in its Capital
Account upon liquidation of the Partnership. The General Partner shall be obligated to restore any
negative balance in its Capital Account upon liquidation of its interest in the Partnership by the
end of the taxable year of the Partnership during which such liquidation occurs, or, if later,
within 90 days after the date of such liquidation.

ARTICLE XIII

Amendment of Partnership Agreement

13.1 Amendment to be Adopted Solely by the Board of Supervisors.

The Limited Partners agree that the Board of Supervisors, without the approval of any Partner,
may amend any provision of this Agreement, and may authorize any Officer (pursuant to the powers of
attorney granted in Section 2.6) to execute, swear to, acknowledge, deliver, file and record
whatever documents may be required in connection therewith, to reflect:

(a) a change in the name of the Partnership, the location of the principal place of business
of the Partnership, the registered agent of the Partnership or the registered office of the
Partnership;

(b) admission, substitution, withdrawal or removal of Partners in accordance with this
Agreement;

(c) a change that, in the discretion of the Board of Supervisors, is necessary or advisable to
qualify or continue the qualification of the Partnership as a limited partnership or a partnership
in which the Limited Partners have limited liability under the laws of any state or to ensure that
neither the Partnership nor the MLP will be treated as an association taxable as a corporation or
otherwise be taxed as an entity for federal income tax purposes;

(d) a change that, in the discretion of the Board of Supervisors, (i) does not adversely
affect the Limited Partners in any material respect, (ii) is necessary or advisable to satisfy any
requirements, conditions or guidelines contained in any opinion, directive, order, ruling or
regulation of any federal or state agency or judicial authority or contained in any federal or
state statute (including the Delaware Act), compliance with any of which the Board of Supervisors
determines in its discretion to be in the best interests of the Partnership and the Limited
Partners, (iii) is required to effect the intent of the provisions of this Agreement or is
otherwise contemplated by this Agreement or (iv) is required to conform the provisions of this
Agreement with the provisions of the MLP Agreement as the provisions of the MLP Agreement may be
amended, supplemented or restated from time to time.

 

51

 

(e) a change in the fiscal year or taxable year of the Partnership and any changes that, in
the discretion of the Board of Supervisors, are necessary or advisable as a result of a change in
the fiscal year or taxable year of the Partnership including, if the Board of Supervisors shall so
determine, a change in the definition of “Quarter” and the dates on which distributions are to be
made by the Partnership;

(f) an amendment that is necessary, in the Opinion of Counsel, to prevent the Partnership or
the members of the Board of Supervisors or the Officers, or the General Partner or its directors,
officers, trustees or agents from in any manner being subjected to the provisions of the Investment
Company Act of 1940, as amended, the Investment Advisers Act of 1940, as amended, or “plan asset”
regulations adopted under the Employee Retirement Income Security Act of 1974, as amended,
regardless of whether such are substantially similar to plan asset regulations currently applied or
proposed by the United States Department of Labor;

(g) any amendment expressly permitted in this Agreement to be made by the Board of Supervisors
acting alone;

(h) an amendment effected, necessitated or contemplated by a Merger Agreement approved in
accordance with Section 14.3;

(i) an amendment that, in the discretion of the Board of Supervisors, is necessary or
advisable to reflect, account for and deal with appropriately the formation by the Partnership of,
or investment by the Partnership in, any corporation, partnership, joint venture, limited liability
company or other entity in connection with the conduct by the Partnership of activities permitted
by the terms of Section 2.4;

(j) an amendment that, in the discretion of the Board of Supervisors, is necessary or
advisable to effect or continue the irrevocable delegation by the General Partner to the Board of
Supervisors of all management powers over the business and affairs of the Partnership; or

(k) any other amendments substantially similar to the foregoing.

13.2 Amendment Procedures.

Except with respect to amendments of the type described in Section 13.1, all amendments to
this Agreement shall be made in accordance with the following requirements. Amendments to this
Agreement may be proposed only by or with the consent of the Board of Supervisors. A proposed
amendment shall be effective upon its approval by all of the Limited Partners.

 

52

 

ARTICLE XIV

Merger

14.1 Authority.

The Partnership may merge or consolidate with one or more corporations, statutory trusts,
business trusts or associations, real estate investment trusts, common law trusts or unincorporated
businesses, including a general partnership, limited partnership, limited liability limited
partnership, limited liability company or limited liability partnership formed under the laws of
the State of Delaware or any other state of the United States of America, pursuant to a written
agreement of merger or consolidation (“Merger Agreement”) in accordance with this Article XIV.

14.2 Procedure for Merger or Consolidation.

Merger or consolidation of the Partnership pursuant to this Article XIV requires the prior
approval of the Board of Supervisors. If the Board of Supervisors shall determine, in the exercise
of its discretion, to consent to the merger or consolidation, the Board of Supervisors shall
approve the Merger Agreement, which shall set forth:

(a) The names and jurisdictions of formation or organization of each of the business entities
proposing to merge or consolidate;

(b) The name and jurisdictions of formation or organization of the business entity that is to
survive the proposed merger or consolidation (the “Surviving Business Entity”);

(c) The terms and conditions of the proposed merger or consolidation;

(d) The manner and basis of exchanging or converting the equity securities of each constituent
business entity for, or into, cash, property or general or limited partner interests, rights,
securities or obligations of the Surviving Business Entity; and (i) if any general or limited
partner interests, securities or rights of any constituent business entity are not to be exchanged
or converted solely for, or into, cash, property or general or limited partner interests, rights,
securities or obligations of the Surviving Business Entity, the cash, property or general or
limited partner interests, rights, securities or obligations of any limited partnership,
corporation, trust or other entity (other than the Surviving Business Entity) which the holders of
such general or limited partner interests, securities or rights are to receive in exchange for, or
upon conversion of their general or limited partner interests, securities or rights, and (ii) in
the case of securities represented by certificates, upon the surrender of such certificates, which
cash, property or general or limited partner interests, rights, securities or obligations of the
Surviving Business Entity or any general or limited partnership, corporation, trust or other entity
(other than the Surviving Business Entity), or evidences thereof, are to be delivered;

(e) A statement of any changes in the constituent documents or the adoption of new constituent
documents (the articles or certificate of incorporation, articles of trust,
declaration of trust, certificate or agreement of limited partnership, certificate of formation or
agreement of limited liability company or other similar charter or governing document) of the
Surviving Business Entity to be effected by such merger or consolidation;

 

53

 

(f) The effective time of the merger, which may be the date of the filing of the certificate
of merger pursuant to Section 14.4 or a later date specified in or determinable in accordance with
the Merger Agreement (provided, that if the effective time of the merger is to be later than the
date of the filing of the certificate of merger, the effective time shall be filed no later than
the time of the filing of the certificate of merger and stated therein); and

(g) Such other provisions with respect to the proposed merger or consolidation as are deemed
necessary or appropriate by the Board of Supervisors.

14.3 Approval by Limited Partners of Mergers or Consolidations.

(a) The Board of Supervisors, upon its approval of the Merger Agreement, shall direct that the
Merger Agreement and the merger or consolidation contemplated thereby be submitted to the Limited
Partners for their approval.

(b) The Merger Agreement and the merger or consolidation contemplated thereby shall be
approved upon receiving the approval of all of the Limited Partners.

(c) After such approval by the Limited Partners, and at any time prior to the filing of the
certificate of merger pursuant to Section 14.4, the merger or consolidation may be abandoned
pursuant to provisions therefor, if any, set forth in the Merger Agreement .

14.4 Certificate of Merger.

Upon the required approval by the Board of Supervisors and the Limited Partners of a Merger
Agreement, a certificate of merger shall be executed and filed with the Secretary of State of the
State of Delaware in conformity with the requirements of the Delaware Act.

14.5 Effect of Merger.

(a) At the effective time of the certificate of merger:

(i) all of the rights, privileges and powers of each of the business entities that has
merged or consolidated, and all property, real, personal and mixed, and all debts due to any
of those business entities and all other things and causes of action belonging to each of
those business entities shall be vested in the Surviving Business Entity and after the
merger or consolidation shall be the property of the Surviving Business Entity to the extent
they were of each constituent business entity;

(ii) the title to any real property vested by deed or otherwise in any of those
constituent business entities shall not revert and is not in any way impaired because of the
merger or consolidation;

 

54

 

(iii) all rights of creditors and all liens on or security interests in property of any
of those constituent business entities shall be preserved unimpaired; and

(iv) all debts, liabilities and duties of those constituent business entities shall
attach to the Surviving Business Entity, and may be enforced against it to the same extent
as if the debts, liabilities and duties had been incurred or contracted by it.

(b) A merger or consolidation effected pursuant to this Article XIV shall not be deemed to
result in a transfer or assignment of assets or liabilities from one entity to another.

ARTICLE XV

General Provisions

15.1 Addresses and Notices.

Any notice, demand, request, report or proxy materials required or permitted to be given or
made to a Partner under this Agreement shall be in writing and shall be deemed given or made when
received by it at the principal office of the Partnership referred to in Section 2.3.

15.2 References.

Except as specifically provided as otherwise, references to “Articles” and “Sections” are to
Articles and Sections of this Agreement.

15.3 Further Action.

The parties shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement.

15.4 Binding Effect.

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
heirs, executors, administrators, successors, legal representatives and permitted assigns.

15.5 Integration.

This Agreement constitutes the entire agreement among the parties hereto pertaining to the
subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.

 

55

 

15.6 Creditors.

None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable
by, any creditor of the Partnership. This Section 15.6 is not intended to limit the rights of a
creditor of the Partnership to enforce its security interest in the General Partner’s Partnership
Interest or a Limited Partner’s Partnership Interest and, in connection with any related
foreclosure, to be admitted as a successor General Partner or a Substitute Limited Partner in the
Partnership.

15.7 Waiver.

No failure by any party to insist upon the strict performance of any covenant, duty, agreement
or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof
shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.

15.8 Counterparts.

This Agreement may be executed in counterparts, all of which together shall constitute an
agreement binding on all the parties hereto, notwithstanding that all such parties are not
signatories to the original or the same counterpart. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto, independently of the signature of any
other party.

15.9 Applicable Law.

This Agreement shall be construed in accordance with and governed by the laws of the State of
Delaware, without regard to the principles of conflicts of law.

15.10 Invalidity of Provisions.

If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

 

56

 

In Witness Whereof, the parties hereto have executed this Agreement as of the date
first written above.

	 	 	 	 	 
	 	
LIMITED PARTNERS:

Suburban Propane Partners, L.P.

 	 
	 	By:  	/s/ MARK A. ALEXANDER
 	 
	 	 	Name:  	Mark A. Alexander 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	
Suburban LP Holding, LLC.

 	 
	 	By:  	/s/ MARK A. ALEXANDER
 	 
	 	 	Name:  	Mark A. Alexander 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	GENERAL PARTNER:

Suburban Energy Services Group LLC

 	 
	 	By:  	/s/ MARK A. ALEXANDER
 	 
	 	 	Name:  	Mark A. Alexander 	 
	 	 	Title:  	MemberEX-4.1

Exhibit 4.1

	 	 	 
	OTE SA
	 	 
	General Directorate of Human Resources

	 	Maroussi, 19/5/2008
	General Directorate of Finance

	 	G. Sintetas
	 

	 	No.: 27/ 2

PROPOSAL

TO:
the Chairman of the Board of Directors and CEO

RE:

Special Personnel Benefits

(Introduction of a Long-Term Plan for the Provision of Stock Option Rights)

This plan (“OTE and COSMOTE Group Executives Plan” or “Plan”) is established by OTE SA (“OTE” or
“Company”):

	a)	 	In replacement of the existing stock option plan, which was approved by a resolution of the
General Meeting of the Company’s Shareholders dated 03.04.2007 and is being implemented by
means of a resolution of the Company’s Board of Directors passed at its meeting dated
20.12.2007 (item 2nd)
	 
	b)	 	To also include the executives of COSMOTE Group after the delisting of the shares of COSMOTE
S.A. (“COSMOTE”) from the Athens Exchange (ATHEX), in replacement of the existing stock option
plan of COSMOTE (“Pre-existing COSMOTE Plan”).

The co-competent General Directorates of Human Resources and Finance cooperated to create a new
plan, more flexible and functional than the existing, which has the following characteristics:

	 	•	 	It allows for the integration in the Plan of executives that are placed in positions of
responsibility during the plan’s period of effect.
	 
	 	•	 	It connects the compensation of Executives with the achievement of high company goals,
through the discount provided during the exercise of the rights, depending on the level of
achievement of said goals.
	 
	 	•	 	It integrates OTE and COSMOTE executives in one Plan.

The goal of the Plan is to recognize the contribution and participation of the executives of OTE
and COSMOTE group of companies in the increase of the Company’s value, through the provision of OTE
stock option rights. In particular, it aims:

	§ 	 	To motivate the included executives (“Executives”) towards the achievement of high personal
and company performance, creating value for OTE shareholders.
	 
	§ 	 	To achieve the harmonization of the contribution and the results of the participating
Executives with the strategy of OTE, in order to enforce a high performance culture.

Following the above, we hereby propose that you suggest to the Board of Directors the approval of a
proposal to be submitted to the upcoming Ordinary General Meeting of the Shareholders, in order to:

	I.	 	Establish and implement a Plan for the Provision of Stock
Option Rights of the Company,  based
on Performance Criteria, to Executives of the Company and its affiliated companies, within the
meaning of article 42e of Codified Law 2190/1920 (hereinafter “Plan”), in order to
strengthen

Stock Option Plan

Page 1 of 11

 

	 	 	the motivation of such Executives, for the achievement of the Company’s long-term goals and for
the increase of value for the Company and its shareholders.

The basic terms of the Plan are the following:

	1.	 	Determination of the participants
	 
	 	 	The following have the right to participate in the plan:

	 	(i)	 	The CEO, the General Directors, the Deputy General Directors, the Legal Counsel, the
Heads of Directorates and the Heads of Sub-Directorates / Districts / Units of OTE. In the
event of a change in the organizational chart, persons entitled to participate in the Plan
will be those who, by virtue of the new organizational chart, occupy positions of rank
equivalent to the above.
	 
	 	(ii)	 	The CEOs of the companies specified below, which are affiliated to the Company,
within the meaning of article 42e of Codified Law 2190/1920:

	 	•	 	OTE International Solutions S.A. under the distinctive title OTE Globe
	 
	 	•	 	OTE ESTATE S.A. under the distinctive title OTE Estate and
	 
	 	•	 	ROMTELECOM S.A.

	 	 	 	provided that the activities of these companies affect the price of the share of OTE, as
parent company, as well as the general evaluation of the stock by the investors.
	 
	 	(iii)	 	Executives of COSMOTE and the companies of COSMOTE Group, as set out in paragraph 1
of this proposal.

	2.	 	Content and Classification of Stock Option Rights

	 	2.1.	 	The Rights are categorized in Basic and Additional Stock Option Rights.
	 
	 	 	 	Basic Stock Option Rights are those granted once to the Executives included in the Plan for
the first time and are not granted again during the Plan’s period of effect.
	 
	 	 	 	Additional Stock Option Rights are those granted on an annual basis to Executives, to whom
Basic Stock Option Rights or Pre-existing Basic Rights have already been granted.

Stock Option Plan

Page 2 of 11

 

	   	 	  By exception,

	 	i.	 	OTE Executives to whom Basic Stock Option Rights were granted during
2007, by virtue of the Pre-existing OTE Plan,(hereby “Pre-existing Basic OTE
Executives Rights”), will maintain these rights and Basic Stock Option Rights will
not be granted to them anew.
	 
	 	ii.	 	The existing Basic and Additional Stock Option Rights for the
purchase of COSMOTE shares that have already been granted by COSMOTE to the
COSMOTE Group Executives during the years 2005, 2006 and 2007, by virtue of the
Pre-existing COSMOTE Plan, are replaced in their entirety by an equal number of
Basic and/or Additional Stock Option Rights respectively for the purchase of OTE
Shares (“Pre-existing Basic or Additional COSMOTE Executives Rights”).

	 	2.2.	 	Subject to the conditions of participation and the schedule, both of which are
described in detail in the following paragraphs of the Plan, the Stock Option Rights of
those participating therein will be converted into Definitive Rights, which, calculated on
the basis of the Preferential Selling Price, will be equal to:

	 	2.2.1.	 	For the executives of OTE and its subsidiaries, as described in the foregoing
paragraph 1.(i) and 1.(ii):

	 	2.2.1.1.	 	With respect to the Basic Rights

	 	a)	 	for the CEO, the General Directors, the Deputy General Directors
and the Legal Counsel of OTE, to a maximum of five (5) Annual Gross Salaries of
each participant,
	 
	 	b)	 	for the CEOs of the subsidiaries set out in the foregoing
paragraph 1.(ii), to a maximum of two (2) Annual Gross Salaries of each
participant
	 
	 	c)	 	to the Heads of Directorates shall be granted a maximum of
20,000 Rights.
	 
	 	d)	 	to the Heads of Sub-Directorates/ Districts / Units shall be
granted a maximum of 10,000 Rights.

	 	2.2.1.2.	 	With respect to the Additional Stock Option Rights

The number of Additional Stock Option Rights granted to the participants at the
Preferential Selling Price shall be equal to a maximum of one (1) Annual Gross Salary
for the CEO of OTE, the CEOs of the subsidiaries, the General Directors, the Deputy
General Directors and the Legal Counsel of OTE, a maximum of 6,000 Rights for the
Heads of Directorates and a maximum of 3,500 Rights for the Heads of the
Sub-Directorates / Districts / Units.

	 	2.2.2.	 	For the executives of COSMOTE and of the companies of COSMOTE Group, as in
paragraph 2 of the Annex.

	 	2.3.	 	The Stock Option Rights are granted by the Board of Directors of the Company in
October of each year, in accordance with the conditions of participation and the schedule
provided herein.
	 
	 	2.4.	 	The Stock Option Rights confer upon the participants the right to purchase, under the
terms of the Plan, common, registered stocks of OTE, listed on the ATHEX (“OTE Shares “),
in a number equal to the granted Stock Option Rights.

Stock Option Plan

Page 3 of 11

 

	 	2.5.	 	It should be specified that:

	 	2.5.1.	 	For the purposes of this Plan, the Annual Gross Salary of each participant shall
be deemed to be the amount resulting after multiplying by fourteen (14) the monthly
gross salary of such participant for the month preceding the granting of Basic or
Additional Option Rights.
	 
	 	2.5.2.	 	If a participant is hired in the month of granting of Basic Stock Option Rights,
the number of Basic Stock Option Rights to be granted to such participant shall be
calculated by taking into account the current monthly gross salary of such
participant.

	3.	 	Conditions for granting Stock Option Rights
	 
	 	 	The conditions for granting Basic or Additional Stock Option Rights is an Executive to:

	 	3.1.	 	Refrain from any action, act or activity which constitutes competition towards the
activities of OTE Group of Companies.
	 
	 	3.2.	 	Refrain from any behaviour which affects or is in conflict with the interests of the
OTE Group of Companies.
	 
	 	3.3.	 	Demonstrate due diligence in the exercise of the duties assigned to him/her
throughout the period of time until the granting of the Basic or Additional Stock Option
Rights.
	 
	 	3.4.	 	Refrain from any unprofessional or inappropriate behaviour as well as from any action
which entails disciplinary or penal sanctions.

	4.	 	Integration in the Plan and granting of Stock Option
Rights

	 	4.1.	 	The integration in the Plan of Executives entitled, according to the terms of this
present, to participate therein shall take place by resolution of the Board of Directors
of OTE, after a proposal of the General Directorate of Human Resources of OTE (in respect
of OTE Executives) and the Board of Directors of COSMOTE (in respect of Executives of
COSMOTE Group of Companies). Such resolution shall be passed in October of each year. By
same resolution shall take place the granting of the Rights, on one hand, and the
determination of the Preferential Selling Price of the said Stock Option Rights on the
other, according to the terms of this present.

In the event that the resolution of the Board of Directors is passed later than October
(even in the following year), it shall be retrospectively valid as of October.
	 
	 	4.2.	 	The date of granting of the Basic or Additional Stock Option Rights shall be October
31st of the year for which the Board of Directors’ resolution mentioned in
paragraph 4.1 (“Year of Granting”) is valid, regardless of the time of passing such
resolution.
	 
	 	4.3.	 	During the Plan, OTE (with respect to OTE Executives) and COSMOTE (with respect to
Executives of COSMOTE Group of Companies) shall inform the beneficiaries with letters, in
which, among others, the number of the Stock Option Rights, the Preferential Selling
Price, the Preferential Purchase Price, the time of converting the Stock Option Rights to
Definitive Rights to Purchase OTE Shares and in general, the essential terms of the Plan
shall be determined.

Stock Option Plan

Page 4 of 11

 

	5.	 	Conversion of Stock Option Rights into Definitive Rights
to Purchase OTE Shares

	 	5.1.	 	Basic Stock Option Rights:
	 
	 	 	 	The Basic Stock Option Rights shall be converted into Definitive Rights to Purchase OTE
Shares as follows:

	 	i)	 	40% upon completion of the first year from the Granting Date,
	 
	 	ii)	 	30% upon completion of the second year from the Granting Date, and
	 
	 	iii)	 	the remaining 30% upon completion of the third year from the Granting Date.

	 	5.2.	 	Additional Stock Option Rights:
	 
	 	 	 	Any Additional Stock Option Rights granted each time shall be converted into Definitive
Rights to Purchase OTE Shares upon the completion of the third year from the Granting
Date.
	 
	 	5.3.	 	Pre-existing Basic and/ or Additional Rights

	 	5.3.1.	 	The Pre-existing Basic Rights of OTE Executives shall be converted into Definitive
Rights to Purchase OTE Shares, as follows:

	 	 	 
	Granting Year	 	 
	to OTE Executives	 	Conversion Year of Basic Rights
	 

	 	31.10.2008 (40%)
	2007

	 	31.10.2009 (30%)
	 

	 	31.10.2010 (30%)

Stock Option Plan

Page 5 of 11

 

	 	5.3.2.	 	The Pre-existing Basic and/ or Additional Rights of COSMOTE Executives will be
converted into Definitive Rights to Purchase OTE Shares, as follows:

	 	 	 	 	 
	 	 	Year
	Granting Year	 	of Conversion of Rights
	to Cosmote Executives	 	Basic	 	Additional
	2005*

	 	28.10.2008 (30%)
	 	28.10.2008 (100%)
	2006**

	 	31.10.2008 and 1.11.2008 (30%)
	 	31.10.2009 and
	 

	 	31.10.2009 and
1.11.2009 (30%)
	 	1.11.2009 (100%)
	 

	 	1.11.2008 (40%)	 	 
	2007

	 	1.11.2009 (30%)
	 	1.11.2010 (100%)
	 

	 	1.11.2010 (30%)	 	 

 

			
	*	 	This category includes the Pre-existing Rights that were granted for the first
time to Executives of Subsidiaries of COSMOTE mobile telephony abroad, by the resolution
of the Board of Directors of COSMOTE dated 18.4.2006.
	 
	**	 	This category includes the Pre-existing Rights that were granted for the first
time to Executives of the GERMANOS Group of Companies by resolution of the Board of
Directors of COSMOTE dated 30.3.2007.

	 	  5.4.	 	The calendar year during which the Stock Option Rights are converted into the
Definitive Rights to Purchase OTE Shares hereinafter will be called “Conversion Year”.

	6.  	Preferential Selling Price — Preferential Purchase
Price of OTE Shares

	 	6.1.	 	The Preferential Selling Price for the first granting of Stock Option Rights
(granting year 2008) shall be 19.49 euros.
	 
	 	 	 	Exceptionally, with respect to the “Pre-existing Basic Rights”:

	 	6.1.1.	 	The Preferential Selling Price of the Pre-existing Basic Rights of the OTE
Executives is set to the amount of €19.49 (as this price was approved by resolution
of the General Meeting of the Company’s Shareholders dated 03/04/2007, by virtue of
which such Executives were integrated in the Pre-existing Plan and purchased the
Basic Rights, which they still preserve).
	 
	 	6.1.2.	 	The Preferential Selling Price of the Pre-existing Basic and Additional Rights of
COSMOTE Group executives is as follows:

	 	•	 	Pre-existing Basic or Additional Rights granted in 2005: €15.95 (price at
which the respective rights for the purchase of COSMOTE shares were granted,
by virtue of the Pre-existing COSMOTE Plan)
	 
	 	•	 	Pre-existing Basic or Additional Rights granted in 2006: €18.84 (price at
which the respective rights for the purchase of COSMOTE shares were granted,
by virtue of the Pre-existing COSMOTE Plan)
	 
	 	•	 	Pre-existing Basic or Additional Rights granted in 2007: €19.49 (price at
which the stock option rights were granted in 2007 to OTE executives).

	 	 	 	The beneficiaries of Pre-existing Basic and Additional Rights will be informed by
COSMOTE by means of a relevant letter, within one (1) month the latest as of the
approval of this present by the General Meeting of OTE Shareholders.

Stock Option Plan

Page 6 of 11

 

	 	 	 	The Preferential Selling Price with respect to subsequent granting of Stock Option Rights
shall be the average of the closing price of the Company’s share on the ATHEX during the
month of September of the granting year.

	 	6.2.	 	Preferential Purchase Price of OTE Shares by OTE executives.

	 	6.2.1.	 	Without prejudice to the provisions of paragraph 6.2.12 below, the Preferential
Purchase Price of OTE Shares corresponding to Definitive Rights to Purchase OTE
Shares shall be equal to the Preferential Selling Price of the respective Stock
Option Rights.
	 
	 	6.2.2.	 	Provided the following apply accumulatively:

	 	(i)	 	achievement, during Conversion Year, of the EBITDA of OTE Group,
as such achievement is evaluated by the Company’s Board of Directors
	 
	 	(ii)	 	achievement, during Conversion Year, of the EBITDA of OTE, as
such achievement is evaluated by the Company’s Board of Directors
	 
	 	(iii)	 	achievement by the participant of a high level of personal
performance, in accordance with the provisions of paragraph 6.2.3 below and
	 
	 	(iv)	 	preservation of the beneficiary’s relation of employment with the
Company until the date, inclusive, of passing of a resolution by the Company’s
Board of Directors, determining any Discount on the Preferential Selling Price
of the Option Rights,

	 	 	 	the Preferential Purchase Price of OTE shares will be equal to the Preferential Selling
Price of the respective Stock Option Rights, minus the Discount depending on the
hierarchy level of each Executive during the year of exercise of the Definitive Rights to
Purchase OTE Shares, as follows:

	 	(A)	 	CEO, General Directors, Deputy General Directors, Legal Counsel,
OTE Directors and CEOs of OTE Subsidiaries, a discount of 15% or 20% or 25% on
the Preferential Selling Price, depending on the achievement level of the goal
determined in paragraph 6.2.2. (ii).
	 
	 	(B)	 	Sub-Directors / District Directors/ Unit Directors of OTE, a
discount of 10% or 15% or 20% on the Preferential Selling Price, depending on
the achievement level of the goal determined in paragraph 6.2.2. (ii).

	 	6.2.3.	 	High Level of Personal Performance means an evaluation of the level “Very Good” or
above, in accordance with OTE evaluation procedure as in force from time to time.

	 	(i)	 	In case of exercise of Basic Rights, the High Level of Personal
Performance must be achieved during the Conversion Year, regardless of the time
of exercise of said rights.
	 
	 	(ii)	 	In case of exercise of Additional Stock Option Rights, the High Level of
Personal Performance must be achieved in at least 2 of the 3 years preceding
the conversion thereof into Definitive Rights to Purchase OTE Shares and under
the condition that in none of those 3 years did the Executive reach a
performance lower than the level characterized as “Very Good”.

Stock Option Plan

Page 7 of 11

 

	 	6.2.4.	 	It is clarified that if the conditions stipulated in paragraph 6.2.2 above are not
met, the Preferential Purchase Price of OTE Shares will be the Preferential Selling
Price, without the Discount mentioned in said paragraph 6.2.2.
	 
	 	6.2.5.	 	The Company’s Board of Directors, evaluating the achievement of the EBITDA goal of
OTE, determines, per hierarchy level, the discount percentage on the Preferential
Selling Price for the Executives who, according to the proposal of the relevant
Department of OTE, meet the conditions of paragraph 6.2.2 as well as the other terms
of this present.

	 	6.3.	 	Preferential Purchase Price of OTE Shares by executives of COSMOTE Group.
	 
	 	 	 	Described in paragraph 3 of the Annex.

	7.	 	Exercise of Definitive Rights to Purchase OTE Shares.

	 	7.1.	 	The Definitive Rights to Purchase OTE Shares may be exercised by the beneficiary in
their entirety or gradually, at the discretion of the beneficiary, in April and October of
each year following the Conversion Year and exclusively within the period of time
stipulated in paragraph 8.2 below.
	 
	 	7.2.	 	The Definitive Rights to Purchase OTE Shares shall be exercised upon the deposit by
the beneficiary to the special account of the Company of the amount resulting from the
number of the Definitive Rights to Purchase OTE Shares multiplied by the Preferential
Purchase Price. In the event that a direct or indirect tax is imposed in relation to the
exercise of the Definitive Rights to Purchase OTE Shares, this shall burden the
beneficiary.
	 
	 	7.3.	 	Following this, the Company’s Board of Directors shall issue to those beneficiaries
who have exercised their rights certificates representing rights to purchase OTE shares
and shall proceed to the increase of the Company’s share capital, in May and November each
year, by issuing a number of shares equal to the exercised Definitive Rights and by
certifying the payment of said increase.

	8.	 	Loss of Stock Option Rights and Definitive Rights to
Purchase OTE Shares

	 	8.1.	 	Loss of granted Stock Option Rights:
	 
	 	 	 	The Basic or Additional Stock Option Rights that have not been converted to Definitive
Rights to purchase OTE shares shall be annulled in the following cases:

	 	8.1.1.	 	When the evaluation of the participant is lower than “Very Good”, in respect of OTE
executives, or lower than “fully meeting the position’s requirements”, in respect of
COSMOTE Group executives.
	 
	 	 	 	In this case, the participant will only lose those Stock Option Rights that would
have been converted into Definitive Rights during the year for which the
Executive received an evaluation of this level.
	 
	 	8.1.2.	 	In the event that the participant’s relation of employment with the Company
expires for any reason whatsoever, unless the OTE Board of Directors decides
differently.
	 
	 	8.1.3.	 	In the event of death of the beneficiary.

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Page 8 of 11

 

	 	 	 	In the event that, after granting of Basic Stock Option Rights and before their conversion
into Definitive Rights, the participant ceases to occupy a position which would justify the
participation in the Plan, but maintains his/her relation of employment, then any Basic
Stock Option Rights not converted into Definitive shall be annulled, with the exception of
those that would have been converted into Definitive on the first conversion date after the
loss of the employment position. It is clarified that in this case, any Additional Stock
Option Rights already granted shall not be annulled, even if they haven’t been converted
into Definitive Rights.
	 
	 	8.2.	 	Loss of Definitive Rights to Purchase OTE Shares:
	 
	 	 	 	The participants in this Plan lose their Definitive Rights to Purchase OTE Shares in case
they have not exercised such Rights, within the period of time stated below:

	 	(i)	 	Definitive Rights following conversion of Basic Stock Option Rights:
	 
	 	 	 	These may be exercised until the month of October, inclusive, of the 5th calendar
year as of the Granting Date of the relevant Basic Stock Option Rights.
	 
	 	(ii)	 	Definitive Rights following conversion of Additional Stock Option Rights:
	 
	 	 	 	These may be exercised until the month of October, inclusive, of the 1st
calendar year following the Conversion Year.

	9.	 	Other issues

	 	9.1.	 	Duration of the Plan: The Board of Directors may grant Basic and/ or Additional
Stock Option Rights by virtue of this Plan annually, starting in 2008 (first granting)
until 2010 (three-year term). The total number of stock option rights that may be granted
shall amount to a maximum of 15,500,000 stock option rights, i.e. about 3.16% of the
aggregate shares of the Company existing at the year of approval of the Plan.
	 
	 	9.2.	 	Any transfer or assignment of the Option Rights while the beneficiary is in life is
forbidden.
	 
	 	9.3.	 	In the event of death of one of the participants after the conversion of the Stock
Option Rights granted to such participant into Definitive Rights, any of the Definitive
Rights of the deceased which have not been exercised until the time of death may be
exercised by the persons stated below, in accordance with the terms and within the
deadlines of this present. In particular:

	 	9.3.1.	 	If the deceased has nominated beneficiaries of this Plan, the rights may be
exercised by said beneficiaries. Any statement (nomination) of beneficiaries may be
revoked or replaced freely by the participant.
	 
	 	9.3.2.	 	If the deceased has not nominated any beneficiaries, the Definitive Rights may be
exercised by the heirs at law of the deceased and at the percentage by which each
heir is entitled to participate in the inheritance of the deceased.

	 	9.4.	 	The Company undertakes all the expenses for the organization and management of the
Plan. The beneficiary will only be burdened with the Preferential Purchase Price, any
additional expenses or taxes that might be imposed in the future on the exercise of
Definitive Rights, as well as with stock exchange fees and fees of agents/ brokers, where
required.
	 
	 	9.5.	 	The Plan shall be construed and administered, with respect to the executives of OTE
as well as those of COSMOTE Group, by resolutions of the Company’s Board of Directors. The

Stock Option Plan

Page 9 of 11

 

	 	 	 	Board of Directors of OTE may resolve to the integration of other companies of OTE Group
in the Plan.
	 
	 	9.6.	 	The General Meeting of the Company’s Shareholders may, at its discretion, at any time
and without harm to the Company, amend this Plan, with respect to the Stock Option Rights
for which the Participant was included in this Plan, provided that such Rights have not
been converted into Definitive Rights. In particular, in case of delisting of the shares
of OTE from the Stock Exchange, the following will apply to the already granted option
rights:

	 	(a)	 	Stock Option Rights which have not been converted into Definitive Rights:
	 
	 	 	 	These shall be replaced by an equal number of Factitious Stock Option Rights which,
when converted into definitive rights, and under the condition of achievement, during
the year of conversion, of specific corporate goals of OTE Group, set by the OTE
Board of Directors. The Factitious Stock Option Rights confer upon the beneficiary
the right to participate in OTE profits made in the financial year of the conversion,
instead of the right to purchase shares. The participation in the profits shall be
for an amount (Reward Amount) which is determined as follows:

	 	(i)	 	Award Amount, if the delisting is taking place after a Tender
Offer:
	 
	 	 	 	The Tender Offer Price, escalating annually by the percentage of change of the
Consumer Price Index (as calculated by the National Statistical Service of
Greece) during the period of time starting on the month when the share ceased to
trade until October of the conversion year, MINUS the Purchase Price MULTIPLIED
BY the number of Stock Option Rights.
	 
	 	(ii)	 	Award Amount in the event there is no Tender Offer:
	 
	 	 	 	The Average Fixing Price of the share on the Stock Exchange during the month
which preceded the date of cessation of trade, escalating annually by the
percentage of change of the Consumer Price Index (as calculated by the National
Statistical Service of Greece) during the period of time starting in the month of
cessation of trade of the share until October of the conversion year, MINUS the
Purchase Price MULTIPLIED BY the number of Stock Option Rights.

	 	(b)	 	Stock Option Rights which have been converted into Definitive Right and have not been
exercised:
	 
	 	 	 	In the event of a Tender Offer: The OTE Board of Directors will take any required and
necessary action so that, prior to the delisting of the shares from the Stock
Exchange, the beneficiaries will have the chance to exercise their definitive rights,
purchase the corresponding shares and sell these to the offeror.
	 
	 	 	 	If for any reason, not due to the beneficiaries, the foregoing are not implemented
until the delisting of OTE shares from the Stock Exchange, then the definitive rights
will be converted de jure into a participation right in OTE profits made in the
financial year of the delisting of the shares from the Stock Exchange, by the Award
Amount according to the foregoing.

	 	9.7.	 	Every person accepting to participate in the Plan, unconditionally accepts as final,
irrevocable and binding all the resolutions of the General Meeting of the Shareholders and
of

Stock Option Plan

Page 10 of 11

 

	 	 	 	the Company’s Board of Directors with respect to the Plan. Upon the exercise of the
Rights granted to each Executive in accordance with the terms of this Plan, a contract
shall be deemed to have been entered into between such Executive and the Company, the
content of which shall comprise of the terms of this resolution, as these are construed
and specified by the resolutions of the Company’s Board of Directors. The exercise of
the Rights signifies the unreserved acceptance of the terms of the contract entered into
according to the above, as such contract will be construed and specified by the latest
decisions of the Board of Directors.
	 
	 	9.8.	 	The terms of this Plan shall also apply to the Pre-existing Basic or Additional
Rights which have been granted to Executives.
	 
	 	9.9.	 	This Plan shall be governed by Greek Law.

	II.	 	The Board of Directors to be authorized to proceed, by
means of resolutions thereof, to:

	 	A)	 	Determine every relevant detail in respect of the description of the conditions for the
granting of rights to the beneficiaries and of the general procedure of granting such
rights, including the exact number of the rights to be granted, within the limits set out by
the General Meeting of the Shareholders,
	 
	 	B)	 	Issue certificates of rights to purchase shares,
	 
	 	C)	 	Increase the share capital each time up to the amount paid up, and
	 
	 	D)	 	Take any action required by law and within the limits of the resolution of the General
Meeting of the Shareholders until the sale of the shares to the beneficiaries and in general
the implementation of the plan.

	 	 	 
	Nikolaos Tsatsanis
	 	Christini Spanoudaki
	General Director of
	 	Chief
	Human Resources
	 	Financial Officer

Stock Option Plan

Page 11 of 11

 

ANNEX

	1.	 	Specification of participants

	 	1.1.	 	COSMOTE Executives: The Chairman of the BoD, the Chief Executive Officer, any
Deputy Chief Executive Officer, the Legal Adviser, the General Directors, the Directors,
Sub-Directors and Heads of Departments of COSMOTE (“COSMOTE Executives”).
	 
	 	1.2.	 	Executives of the COSMOTE mobile telephony Subsidiaries abroad: The Chief
Executive Officers, the Legal Advisers, the General Directors and the Directors of the
COSMOTE mobile telephony Subsidiaries abroad (“Executives of COSMOTE mobile telephony
Subsidiaries abroad”).
	 
	 	1.3.	 	GERMANOS Group Executives:

	 	(a)	 	Executives of GERMANOS SA (“GERMANOS”), a subsidiary of COSMOTE, whose
position is equivalent to the rank of General Director, Director, Sub-Director or
Head of Department of COSMOTE, as such equivalence is specified by COSMOTE (“GERMANOS
Executives”);
	 
	 	(b)	 	Executives of subsidiaries of GERMANOS abroad, whose position is equivalent
to the rank of General Director or Director of the COSMOTE mobile telephony
subsidiaries abroad, as such equivalence is specified by COSMOTE (“Executives of the
GERMANOS Subsidiaries abroad”), and
	 
	 	(c)	 	The General Director of E-VALUE, a subsidiary of GERMANOS (“E-VALUE
Executive”)

	 	 	 	(all Executives under (a), (b) and (c) above collectively referred to as “GERMANOS Group
Executives”).
	 
	 	1.4.	 	In case of change to the organizational chart, persons who, according to the new
organizational chart, hold positions of equivalent ranks to the above may participate in
the Plan.
	 
	 	1.5.	 	This Plan addresses Executives of the following companies of the COSMOTE Group:

	 	•	 	COSMOTE MOBILE TELECOMMUNICATIONS S.A.
	 
	 	•	 	COSMOTE ROMANIAN MOBILE TELECOMMUNICATIONS S.A.
	 
	 	•	 	COSMO BULGARIA MOBILE EAD
	 
	 	•	 	ALBANIAN MOBILE COMMUNICATIONS Sh.a
	 
	 	•	 	COSMOFON MOBILE TELECOMMUNICATIONS SERVICES AD — SKOPJE
	 
	 	•	 	GERMANOS INDUSTRIAL & COMMERCIAL COMPANY OF ELECTRONIC TELECOMMUNICATION
MATERIAL & SUPPLY OF TELECOMMUNICATION SERVICES S.A.
	 
	 	•	 	E-VALUE SOCIETE ANONYME FOR THE PROVISION OF DIRECT MARKETING AND CUSTOMER
SERVICES (E-VALUE S.A.)
	 
	 	•	 	GERMANOS TELECOM BULGARIA AD
	 
	 	•	 	GERMANOS TELECOM ROMANIA S.A.
	 
	 	•	 	SUNLIGHT ROMANIA S.R.L./FILIALA
	 
	 	•	 	GERMANOS TELECOM SKOPJE S.A

			
	 	 	 
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	 	1.6.	 	The Plan which applies to COSMOTE Executives who work in Greece, i.e. the terms of 2.1
hereof, shall apply to those COSMOTE Executives who have been will be seconded to COSMOTE
mobile telephony Subsidiaries abroad. The calculation basis of Stock Option Rights of such
Executives shall be exclusively the salary directly received from COSMOTE.
	 
	 	1.7.	 	The Plan which applies to GERMANOS or E-VALUE Executives, i.e. the terms of 2.3(a) and
2.3(c) hereof, as the case may be, shall apply to those GERMANOS or E-VALUE Executives who
have been or will be seconded to COSMOTE Group Subsidiaries abroad. The calculation basis
of Stock Option Rights of such Executives shall be exclusively the salary directly received
from GERMANOS or E-VALUE.
	 
	 	1.8.	 	Executives of a COSMOTE Group company operating in Greece, who are directly employed by
a COSMOTE Group company operating abroad upon termination of employment with the COSMOTE
Group company operating in Greece, and who have already received Basic Stock Option Rights,
may not receive new Basic Stock Option Rights. Any Additional Stock Option Rights shall be
granted according to the regulations which apply to Executives of the COSMOTE Group company
operating abroad, by which they are employed.
	 
	 	1.9.	 	COSMOTE Group Executives who are seconded to any company of the OTE Group shall retain
any Stock Option Rights already granted under this Plan (including any Pre-existing Rights
of COSMOTE Executives). Any new Stock Option rights shall not be subject to this Plan, but
to the OTE plan which may apply to the company of secondment.
	 
	 	1.10.	 	An Executive who has already been granted Basic Stock Option Rights either under
Pre-existing OTE and COSMOTE Plans or under this Plan shall in no case be entitled to new
Basic Stock Option Rights.
	 
	 	1.11.	 	Internal transfers within OTE Group companies shall not form grounds to forfeit any
Stock Option Rights granted. Internal transfers shall also include cases of employment
termination of an Executive with an OTE Group company and subsequent new employment
agreement with another OTE Group company.
	 
	 	1.12.	 	Executives seconded from OTE to COSMOTE and directly employed by the latter under an
employment agreement for an equivalent position shall not forfeit, on the grounds of change
of employer, any Stock Option Rights granted at the time of secondment.

			
	 	 	 
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	 	Page 2 of 6

 

 

	2.	 	Content and Classification of Stock Option Rights.
	 
	 	 	The maximum number of Stock Option Rights to be granted shall arise from a multiple of the
participant’s Annual Gross Salary divided by the Preferential Selling Price, according to the
following:

	 	2.1.	 	COSMOTE Executives
	 
	 	 	 	BASIC OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which the
number of Basic Option Rights to be granted to COSMOTE Executives shall arise is:

	 	a)	 	for the BoD Chairman, the maximum of 2.5 Annual Gross Salaries payable to
the Chief Executive Officer or the Deputy Chief Executive Officer;
	 
	 	b)	 	for the Chief Executive Officer, any Deputy Chief Executive Officer, the
Legal Adviser and the General Directors, the maximum of five (5) Annual Gross
Salaries;
	 
	 	c)	 	for the Directors, the maximum of four (4) Annual Gross Salaries;
	 
	 	d)	 	for the Sub-Directors, the maximum of three (3) Annual Gross Salaries, and
	 
	 	e)	 	for the Heads of Departments, the maximum of two (2) Annual Gross Salaries.

	 	 	 	ADDITIONAL OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which
the number of Additional Option Rights to be granted to COSMOTE Executives shall arise is
the maximum of one (1) Annual Gross Salary of each participant.

	 	2.2.	 	Executives of the COSMOTE mobile telephony Subsidiaries abroad
	 
	 	 	 	BASIC OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which the
number of Basic Option Rights to be granted to Executives of the COSMOTE mobile telephony
Subsidiaries abroad shall arise is:

	 	a)	 	the maximum of two (2) Annual Gross Salaries for the Chief Executive Officers, and
	 
	 	b)	 	the maximum of one (1) Annual Gross Salary for General Directors and Directors.

	 	 	 	ADDITIONAL OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which
the number of Additional Option Rights to be granted to Executives of the COSMOTE mobile
telephony Subsidiaries abroad shall arise is the maximum of 0.75 of the Annual Gross
Salary of the participating Executive of the COSMOTE mobile telephony Subsidiaries abroad.
	 
	 	2.3.	 	GERMANOS Group Executives
	 
	 	 	 	BASIC OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which the
number of Basic Option Rights to be granted to GERMANOS Group Executives shall arise is:

	 	(a)	 	GERMANOS Executives:

	 	i)	 	whose position is equivalent to the rank of General Director in
COSMOTE, the maximum of five (5) Annual Gross Salaries;
	 
	 	ii)	 	whose position is equivalent to the rank of Director in COSMOTE,
the maximum of four (4) Annual Gross Salaries;
	 
	 	iii)	 	 whose position is equivalent to the rank of Sub-Director in COSMOTE, the maximum
of three (3) Annual Gross Salaries, and

			
	 	 	 
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	 	Page 3 of 6

 

 

	 	iv)	 	whose position is equivalent to the rank of Head of Department in
COSMOTE, the maximum of two (2) Annual Gross Salaries.

	 	(b)	 	Executives of GERMANOS Subsidiaries Abroad:

	 
	 	
whose position is equivalent to the rank of General Director or Director in the COSMOTE
mobile telephony Subsidiaries abroad, the maximum of one (1) Annual Gross Salary;
	 
	 	(c)	 	E-VALUE Executive: the maximum of three (3) Annual Gross Salaries.

	 	 	 	ADDITIONAL OPTION RIGHTS: The multiple of the Annual Gross Salary on the basis of which
the number of Additional Option Rights to be granted to GERMANOS Group Executives shall
arise is:

	 	(a)	 	GERMANOS Executives: the maximum of one (1) Annual Gross Salary.
	 
	 	(b)	 	Executives of GERMANOS Subsidiaries Abroad: the maximum of 0.75 of the
participant’s Annual Gross Salary.
	 
	 	(c)	 	E-VALUE Executive: the maximum of one (1) Annual Gross Salary.

	 	2.4.	 	It is clarified that:
	 
	 	 	 	Unless salaries are paid in Euros, the foreign currency in which salaries are paid shall
be converted into Euros on the basis of the exchange rate as of the last day of the month
preceding payment, according to official information from the Bank of Greece.
	 
	 	 	 	Legal Advisers of COSMOTE mobile telephony Subsidiaries abroad and the GERMANOS Group
shall be granted Stock Option Rights depending on their rank in the company of employment.

	 	•	 	Upon approval of this Plan by the General Assembly of OTE Shareholders, the existing
Basic and Additional Option Rights for the purchase of COSMOTE shares which have
already been granted by COSMOTE in 2005, 2006 and 2007 in line with the Pre-existing
COSMOTE Plan, shall be replaced in whole by equivalent Basic and/ or Additional Option
Rights, respectively, for the purchase of OTE Shares (“Pre-existing Basic or
Additional Option Rights of COSMOTE Executives”). The Preferential Selling Price of
Pre-existing Basic or Additional Option Rights is as follows:Pre-existing Basic or
Additional Option Rights granted in 2005: €15.95 (price at which the respective rights
for COSMOTE shares were granted in line with the Pre-existing COSMOTE Plan).
	 
	 	•	 	Pre-existing Basic or Additional Option Rights granted in 2006: €18.84 (price at which
the respective rights for COSMOTE shares were granted in line with the Pre-existing COSMOTE
Plan).
	 
	 	•	 	Pre-existing Basic or Additional Option Rights granted in 2007: €19.49 (price at which
stock option rights were granted to OTE Executives in 2007).
	 
	 	 	 	The beneficiaries of Pre-existing Basic or Additional Option Rights shall be notified by
COSMOTE via a relevant letter no later than one (1) month from approval of this Plan by
the General Assembly of OTE Shareholders.

			
	 	 	 
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	3.	 	Preferential Purchase Price of OTE Shares by Cosmote Group
Executives

	 	3.1.	 	Without prejudice to the provisions of para.3.2 below, the Preferential Purchase Price
of OTE Shares corresponding to Final Rights to Purchase OTE Shares shall be equal to the
Preferential Selling price of the respective Stock Option Rights.
	 
	 	3.2.	 	Provided that all of the following apply:

	 	(i)	 	achievement during the Year of Conversion:

	 	(a)	 	of the OTE Group EBITDA, as such achievement is assessed by the OTE
Board of Directors, and
	 
	 	(b)	 	of specific corporate objectives of the COSMOTE Group set by the
COSMOTE Board of Directors, as such achievement is assessed by the COSMOTE Board
of Directors,

	 	(ii)	 	achievement of high level of individual performance by the participant
(“High Level of Individual Performance”), according to paragraph 3.3 below, and
	 
	 	(iii)	 	retention of beneficiary’s employment relation with an OTE Group company
until the date of decision by the OTE Board of Directors specifying any Discount on
the Preferential Selling Price of Stock Option Rights,

the Preferential Purchase Price of OTE Shares shall be equal to the Preferential Selling
Price of the respective Stock Option Rights, minus a Discount depending on the
Executive’s rank as of the time of exercise of the Final Rights to Purchase OTE Shares, as
follows:

(A)    Chairman of the BoD, CEO, any Deputy CEO, General Directors, Legal Adviser, COSMOTE
Directors, Executives of the Company’s mobile telephony Subsidiaries abroad and
beneficiaries holding equivalent positions in the GERMANOS Group, as specified in paragraphs
2.1, 2.2 and 2.3 hereof: discount of 15% or 20% or 25%, respectively, on the Preferential
Selling Price, depending on the extent of achievement of the objectives set out in paragraph
3.2. (i) (b).

(B)    Sub-Directors, Heads of Departments of COSMOTE and beneficiaries holding equivalent
positions in the GERMANOS Group, as specified in paragraphs 2.1 and 2.3 hereof: discount of
10% or 15% or 20%, respectively, on the Preferential Selling Price, depending on the extent
of achievement of the objectives set out in paragraph 3.2. (i) (b).

	 	3.3.	 	High Level of Individual Performance:
	 
	 	 	 	High Level of Individual Performance means performance demonstrated by an Executive, which
exceeds the “fully meets position requirements” level, according to the applicable
performance evaluation procedure followed by the COSMOTE Group company where the Executive
is employed, as follows:

	 	(i)	 	In the case of exercise of Basic Option Rights, the High Level of
Individual Performance must have been achieved during the Year of Conversion,
regardless of the time of exercise.
	 
	 	(ii)	 	In the case of exercise of Additional Option Rights, the High Level of
Individual Performance must have been achieved at least during 2 out of the 3 years
until their conversion into Final Rights to Purchase OTE Shares, provided also that
the Executive does not demonstrate individual performance lower than the position
requirements during any of the 3 years.

			
	 	 	 
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	 	3.4.	 	It is clarified that in case the requirements laid down in paragraph 3.2 above are not
met, the Preferential Purchase Price of OTE Shares shall be equal to the Preferential
Selling Price excluding the Discount referred to in said paragraph 3.2.
	 
	 	3.5.	 	According to the evaluation of corporate objectives for the COSMOTE Group by the
COSMOTE BoD, the OTE Board of Directors shall approve, per rank, the discount percentage on
the Preferential Selling Price for those COSMOTE Executives who meet, under the COSMOTE BoD
proposal, the requirements of paragraph 3.2, as well as the remaining terms hereof.

This Annex forms an integral part of the Proposal to the OTE BoD for the Introduction of a
Long-Term Plan for the Provision of Stock Option Rights.

	 	 	 
	Nikolaos Tsatsanis
	 	Christini Spanoudaki
	Human Resources General Director
	 	Chief Financial Officer

 
			
	 	 	 
	Annex
	 	Page 6 of 6

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