Form of Director and Officer Indemnification Agreement




 Exhibit 10.26 
  
 ENERGY TRANSFER EQUITY, L.P. 
 INDEMNIFICATION AGREEMENT 
  
 THIS AGREEMENT (this “Agreement”) is effective                         , 2006, between Energy Transfer
Equity L.P., a Delaware limited partnership (the “MLP”), LE GP, LLC, a Delaware limited liability company (the “Company”), and the undersigned [director/officer] of the Company (“Indemnitee”). 
  
 WHEREAS, the MLP Partnership Agreement (as defined below) provides for
indemnification of each officer and director of the Company and the MLP, as well as persons serving in various other capacities, to the maximum extent permitted by the Partnership Statute (as defined below); 
  
 WHEREAS, the Indemnitee is entitled to indemnification pursuant to the MLP
Partnership Agreement; 
  
 WHEREAS, the Company LLC Agreement (as
defined below) provides indemnification of each director and officer of the Company, as well as persons serving in other capacities, to the maximum extent authorized by the LLC Statute (as defined below); and 
  
 WHEREAS, the Indemnitee is entitled to indemnification pursuant to the
Company LLC Agreement; 
  
 WHEREAS, each of the Company LLC
Agreement, the MLP Partnership Agreement, the LLC Statute and the Partnership Statute contemplate that contracts and insurance policies may be entered into with respect to indemnification of directors, officers and certain other persons; and

  
 WHEREAS, there are questions concerning the adequacy and
reliability of the protection which might be afforded to directors and officers from the acquisition of policies of directors and officers liability insurance (“D&O Insurance”) that cover certain liabilities which might be incurred by
directors in the performance of their services to the MLP and/or the Company; and 
  
 WHEREAS, it is reasonable, prudent and necessary for each of the MLP and the Company to obligate itself contractually to indemnify Indemnitee so that he will serve or continue to serve the MLP and the Company free
from undue concern that he will not be adequately protected; 
  
 WHEREAS, Indemnitee is willing to serve for or on behalf of the MLP and/or the Company on condition that he be so indemnified; and 
  
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of each of the Company and the MLP
that the parties hereto enter into this Agreement. 
  
 NOW,
THEREFORE, in consideration of the premises and the covenants contained herein, the MLP, the Company and Indemnitee do hereby covenant and agree as follows: 
  
 1. Definitions. As used in this Agreement: 








 (a) The term “Proceeding” shall include any threatened, pending or completed action, suit,
inquiry or proceeding, whether brought by or in the right of the MLP or the Company or otherwise and whether of a civil, criminal, administrative, arbitrative or investigative nature, in which Indemnitee is or will be involved as a party, as a
witness or otherwise, by reason of the fact that Indemnitee is or was a director or agent of the MLP or the Company, by reason of any action taken by him or of any inaction on his part while acting as a director or agent or by reason of the fact
that he is or was serving at the request of the MLP or the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, limited liability company or other enterprise; in each case whether or not he is
acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement; provided that any such action, suit or proceeding that is brought by Indemnitee
against the MLP or the Company or directors or officers of the MLP or the Company, other than an action brought by Indemnitee to enforce his rights under this Agreement, shall not be deemed a Proceeding without prior approval by a majority of the
Board of Directors of the Company. 
  
 (b) The term
“Expenses” shall include, without limitation, any judgments, fines and penalties against Indemnitee in connection with a Proceeding; amounts paid by Indemnitee in settlement of a Proceeding; and all attorneys’ fees and disbursements,
accountants’ fees, private investigation fees and disbursements, retainers, court costs, transcript costs, fees of experts, fees and expenses of witnesses, travel expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees, and all other disbursements, or expenses, reasonably incurred by or for Indemnitee in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in a
Proceeding or establishing Indemnitee’s right of entitlement to indemnification for any of the foregoing. 
  
 (c) References to “other enterprise” shall include employee benefit plans; references to “Fines” shall include any excise tax assessed
with respect to any employee benefit plan; references to “serving at the request of the MLP or the Company” shall include any service as a director or agent of the MLP or the Company that imposes duties on, or involves services by, such
director or agent with respect to an employee benefit plan, its participants or beneficiaries. 
  
 (d) The term “substantiating documentation” shall mean copies of bills or invoices for costs incurred by or for Indemnitee, or copies of court or agency orders or decrees or settlement agreements, as the
case may be, accompanied by a sworn statement from Indemnitee that such bills, invoices, court or agency orders or decrees or settlement agreements, represent costs or liabilities meeting the definition of “Expenses” herein. 
  
 (e) The term “MLP Partnership Agreement” means the Third Amended
and Restated Agreement of Limited Partnership of the MLP, dated as of
                                , 2006, as amended or restated from time to time.

  
 (f) The term “Company LLC Agreement” means the
Limited Liability Company Agreement of the Company, dated as of
                                    , 2006, as amended or
restated from time to time. 
  
 (g) The term “LLC
Statute” means the Delaware Limited Liability Company Act. 
  

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 (h) The term “Partnership Statute” means the Delaware Revised Uniform Limited Partnership Act.

  
 (i) The term “Board of Directors” means the Board of
Directors of the Company. 
  
 (j) The terms “he” and
“his” have been used for convenience and mean “she” and “her” if Indemnitee is a female. 
  
 2. Indemnity of Indemnitee. Each of the MLP and the Company hereby agrees to hold harmless and indemnify Indemnitee against Expenses to the fullest
extent authorized or permitted by law (including the applicable provisions of the Partnership Statute and the LLC Statute). The phrase “to the fullest extent permitted by law” shall include, but not be limited to (i) to the fullest
extent permitted by any provision of the Partnership Statute and the LLC Statute that authorizes or permits additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the Partnership Statute and the
LLC Statute and (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the Partnership Statute and the LLC Statute adopted after the date of this Agreement that increase the extent to which a limited
liability company may indemnify its directors. Any amendment, alteration or repeal of the Partnership Statute and the LLC Statute that adversely affects any right of Indemnitee shall be prospective only and shall not limit or eliminate any such
right with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment or repeal. 
  
 3. Additional Indemnity. Each of the MLP and the Company hereby further agrees to hold harmless and indemnify
Indemnitee against Expenses incurred by reason of the fact that Indemnitee is or was a director or agent of the MLP or the Company, or is or was serving at the request of the MLP or the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or other enterprise, including, without limitation, any predecessor, subsidiary or affiliated entity of the MLP or the Company, provided that the Indemnitee shall not
be indemnified and held harmless if there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter for which the Indemnitee is seeking indemnification pursuant to this
Agreement, the Indemnitee acted in bad faith or engaged in fraud, willful misconduct or gross negligence, or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful. The termination of any Proceeding
by judgment, order of the court, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee acted in bad faith or engaged in fraud, willful misconduct or gross negligence,
or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful. 
  
 4. Choice of Counsel. If Indemnitee is a director of the Company but not an officer of the Company, he, together with the other directors of the
Company who are not officers of the Company (the “Outside Directors”), shall be entitled to employ, and be reimbursed for the fees and disbursements of, counsel separate from that chosen by persons who are parties to similar
indemnification agreements with the MLP and the Company who are not Outside Directors (the “Inside Indemnitees”). The principal counsel for Outside Directors (“Principal Counsel”) shall be determined by majority vote of the
Outside Directors, and the principal counsel for the Inside 

  

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Indemnitees (“Separate Counsel”) shall be determined by majority vote of such Inside Indemnitees. The obligation of the MLP and the Company to
reimburse Indemnitee for the fees and disbursements of counsel hereunder shall not extend to the fees and disbursements of any counsel employed by Indemnitee other than Principal Counsel or Separate Counsel, as the case may be, unless, in the
opinion of other counsel for Indemnitee, concurred in by Principal Counsel or Separate Counsel, as the case may be, Indemnitee may have defenses available to him that are in addition to or different from those of the other Indemnitees such that
there is a substantial possibility that Principal Counsel of Separate Counsel, as the case may be, will have a conflict of interest in representing Indemnitee. 
  

5. Advances of Expenses. The MLP and the Company shall be obligated to pay Expenses (other than judgments, penalties, fines and settlements)
incurred by Indemnitee, in advance of the final disposition of the Proceeding, within 10 days after receipt of Indemnitee’s written request accompanied by substantiating documentation and Indemnitee’s written affirmation that he has met
the standard of conduct for indemnification and a written undertaking to repay such amount to the extent it is ultimately determined that indemnitee is not entitled to indemnification. No objections based on or involving the question whether such
charges meet the definition of “Expenses,” including any question regarding the reasonableness of such Expenses, shall be grounds for failure to advance to such Indemnitee, or to reimburse such Indemnitee for, the amount claimed within
such 10-day period, and the undertaking of Indemnitee set forth in Section 7 hereof to repay any such amount to the extent it is ultimately determined that Indemnitee is not entitled to indemnification shall be deemed to include an undertaking
to repay any such amounts determined not to have met such definition. 
  
 6. Right of Indemnitee to Indemnification Upon Application; Procedure Upon Application. Any indemnification payment under this Agreement, other than pursuant to Section 5 hereof, shall be made no later than 45 days after receipt
by the MLP and the Company of the written request of Indemnitee, accompanied by substantiating documentation, unless a determination is made within said 45-day period by (1) the Board of Directors by a majority vote of a quorum consisting of
directors who are not or were not parties to such Proceeding, (2) by a committee of the Board of Directors designated by majority vote of the Board of Directors, even though less than a quorum, (3) if there are no such directors, or if
such directors so direct, independent legal counsel in a written opinion or (4) by the stockholders, that Indemnitee has not met the relevant standards for indemnification set forth in Section 3 hereof. 
  
 The right to indemnification or advances as provided by this Agreement shall
be enforceable by Indemnitee in any court of competent jurisdiction. The burden of proving that indemnification is not appropriate shall be on the MLP and the Company. Neither the failure of the MLP or the Company (including the Board of Directors,
any committee thereof, any independent legal counsel or any equity owner thereof) to have made a determination prior to the commencement of such action that indemnification is proper in the circumstances because Indemnitee has met the applicable
standards of conduct, nor an actual determination by the MLP or the Company (including the Board of Directors, any committee thereof, any independent legal counsel or any equity owner thereof) that Indemnitee has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 
  

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 7. Undertaking by Indemnitee. Indemnitee hereby undertakes to repay to the MLP and the Company any
advances of Expenses pursuant to Section 5 hereof to the extent that it is ultimately determined that Indemnitee is not entitled to indemnification. 
  
 8. Joint and Several Liability; No Duplicative Payments. The obligations of the MLP and the Company to make payments pursuant to this Agreement
shall be joint and several; provided, however that in no event shall Indemnitee be entitled to receive duplicative payment from the MLP and the Company for any amount payable hereunder and, in the event that Indemnitee receives any duplicative
payment, Indemnitee shall promptly notify each of the MLP and the Company of any such duplicative payment and shall return any such duplicative payment to the MLP or the Company as directed in writing by the MLP and the Company. 
  
 9. Indemnification Hereunder Not Exclusive. The indemnification and
advancement of expenses provided by this Agreement shall not deemed exclusive of any other rights to which Indemnitee may be entitled under the MLP Partnership Agreement, the Company LLC Agreement, the Partnership Statute, the LLC Statute, any
D&O Insurance, any other agreement, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office. However, Indemnitee shall reimburse the MLP and the Company for amounts paid to him
pursuant to such other rights to the extent such payments duplicate any payments received pursuant to this Agreement. 
  
 10. Continuation of Indemnity. All agreements and obligations of the MLP and the Company contained herein shall continue during the period
Indemnitee is a director or officer of the MLP or the Company (or is or was serving at the request of the MLP or the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, limited liability
company or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any possible Proceeding. 
  
 11. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the MLP or the Company for some
or a portion of Expenses, but not, however, for the total amount thereof, the MLP and the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled. 
  
 12. Settlement of Claims. None of the MLP or the Company shall be
liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the written consent of the MLP and the Company. None of the MLP or the Company shall settle any Proceeding in any manner which
would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent. None of the MLP or the Company nor Indemnitee will unreasonably withhold their consent to any proposed settlement. None of the MLP or the Company shall
be liable to indemnify Indemnitee under this Agreement with regard to any judicial award if the MLP and the Company were not given a reasonable and timely opportunity, at their expense, to participate in the defense of such action. 
  
 13. Enforcement. 
  
 (a) Each of the MLP and the Company expressly confirms and agrees that it
has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce 

  

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Indemnitee to serve as a director or officer of the MLP or the Company or in some other representative capacity on behalf of the MLP or the Company, and
acknowledges that Indemnitee is relying upon this Agreement in continuing to serve in such capacity. 
  
 (b) In the event Indemnitee is required to bring any action or other proceeding to enforce rights or to collect money due under this Agreement and is
successful in such action, the MLP and the Company shall reimburse Indemnitee for all of Indemnitee’s Expenses in bringing and pursuing such action. 
  
 14. Governing Law; Binding Effect; Amendment and Termination. (a) This Agreement shall be interpreted and enforced in accordance with the laws of
the State of Delaware. 
  
 (b) This Agreement shall be binding
upon the MLP and the Company, their respective successors and assigns, and shall inure to the benefit of Indemnitee, his heirs, personal representatives and assigns and to the benefit of the MLP and the Company, their respective successors and
assigns. 
  
 (c) No amendment, modification, termination or
cancellation of this Agreement shall be effective unless in writing signed by the MLP, the Company and Indemnitee. 
  
 15. Severability. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable (a) the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be in any way affected or impaired thereby, and (b) to the fullest extent possible, the provisions of this 
 Agreement shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable. Each section of this Agreement is a separate and independent portion of this
Agreement. If the indemnification to which Indemnitee is entitled as respects any aspect of any claim varies between two or more sections of this Agreement, that section providing the most comprehensive indemnification shall apply. 
  
 16. Notice. Notice to any of the MLP or the Company shall be directed
to Energy Transfer Equity, L.P., 2828 Woodside Street, Dallas, Texas 75204, Attention: President. Notice to Indemnitee shall be directed to the address set forth under his signature hereto. The foregoing addresses may be changed from time to time by
the addressee upon notice to the other parties. 
  
 Notice shall
be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first
above written. 
  

					
	 ENERGY TRANSFER EQUITY, L.P.
  
 By: LE GP, LLC, its general partner

			
	 	 	By:	 	 
	 	 	 Name:
	 	 John W. McReynolds

	 	 	 Title:
	 	 Chief Executive Officer



  

			
	LE GP, LLC
		
	By:	 	 
	 Name:
	 	 John W. McReynolds

	 Title:
	 	 Chief Executive Officer



  

	
	INDEMNITEE
	
	 
	 Name:
 Address:



  

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