Document:

exv4w2

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

REGENCY ENERGY PARTNERS LP

AND

REGENCY LP ACQUIRER, L.P.

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of May 26,
2010, by and among REGENCY ENERGY PARTNERS LP, a Delaware limited partnership (“Regency”) and
REGENCY LP ACQUIRER, L.P., a Delaware limited partnership (“LP Holdings”).

     This Agreement is made in connection with LP Holdings’ and its Affiliates’ ownership of
24,679,577 common units of Regency on the date hereof.

     In consideration of the mutual covenants and agreements set forth herein and for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each party
hereto, the parties hereby agree as follows:

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the Amended and Restated Agreement of Limited Partnership of Regency.
The terms set forth below are used herein as so defined:

     “Affiliates” means a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, a specified Person.
A Person shall be deemed to control another Person if such first Person possesses, directly or
indirectly, the power to direct, or cause the direction of, the management and policies of such
other Person, whether through the ownership of voting securities, by contract or otherwise.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Common Units” means 24,679,577 common units representing limited partner interests in
Regency owned by LP Holdings on the date hereof.

     “Effectiveness Period” has the meaning specified therefor in Section 2.01(a) of this
Agreement.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Holder” means the record holder of any Registrable Securities.

     “Losses” has the meaning specified therefor in Section 2.07(a) of this Agreement.

     “LP Holdings” has the meaning specified therefor in the preamble of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the book
running lead manager of such Underwritten Offering.

 

 

     “Person” means any natural person, corporation, limited partnership, general
partnership, limited liability company, joint stock company, joint venture, association, company,
estate, trust, bank trust company, land trust, business trust, or other organization, whether or
not a legal entity, custodian, trustee-executor, administrator, nominee or entity in a
representative capacity.

     “Regency” has the meaning specified therefor in the preamble of this Agreement.

     “Registrable Securities” means the Common Units until such time as such securities
cease to be Registrable Securities pursuant to Section 1.02 hereof.

     “Registration Expenses” has the meaning specified therefor in Section 2.06(a) of this
Agreement.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     “Selling Expenses” has the meaning specified therefor in Section 2.06(a) of this
Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
Shelf Registration Statement.

     “Shelf Registration” has the meaning specified therefor in Section 2.01(a) of this
Agreement.

     “Shelf Registration Statement” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Shelf
Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis
for reoffering to the public or an offering that is a “bought deal” with one or more investment
banks.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such effective registration statement; (b) such Registrable Security has been disposed
of pursuant to any section of Rule 144 (or any successor rule or regulation to Rule 144); (c) such
Registrable Security is held by Regency or one of its subsidiaries; or (d) such Registrable
Security is eligible for resale (without restriction, including but not limited to, volume
limitations) under Rule 144 (or any similar provisions then in force under the Securities Act)
under the Securities Act.

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ARTICLE II.

REGISTRATION RIGHTS

     Section 2.01 Shelf Registration.

          (a) Shelf Registration. (a) At the option and upon the request of the holders of a
majority of the Common Units covered by this Agreement, Regency shall prepare and file a
registration statement under the Securities Act to permit the public resale of the Registrable
Securities from time to time as permitted by Rule 415 (or any similar provision then in force) of
the Securities Act (the “Shelf Registration Statement”). Regency shall use its reasonable best
efforts to file the Shelf Registration Statement within 45 days of any such request and cause it to
be effective as soon as reasonably practicable thereafter (the “Shelf Registration”); provided,
however, that the Partnership shall not be required to effect more than three registrations
pursuant to this Section 2.01(a). The Shelf Registration Statement filed pursuant to this Section
2.01(a) shall be on such appropriate registration form of the Commission as shall be selected by
Regency; provided, however, that if a prospectus supplement will be used in connection with the
marketing of an Underwritten Offering from the Shelf Registration Statement and the Managing
Underwriter at any time shall notify LP Holdings in writing that, in the sole judgment of such
Managing Underwriter, inclusion of detailed information to be used in such prospectus supplement is
of material importance to the success of the Underwritten Offering of such Registrable Securities,
Regency shall use its reasonable best efforts to include such information in such a prospectus
supplement. Regency will cause the Shelf Registration Statement filed pursuant to this Section
2.01(a) to be continuously effective under the Securities Act until all Registrable Securities
covered by the Shelf Registration Statement have been distributed in the manner set forth and as
contemplated in the Shelf Registration Statement or there are no longer any Registrable Securities
outstanding (the “Effectiveness Period”). The Shelf Registration Statement when declared effective
(including the documents incorporated therein by reference) will comply as to form with all
applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. If Regency determines in good faith that
the requested registration would be materially detrimental to Regency because such registration
would (x) materially interfere with a significant acquisition, reorganization or other similar
transaction involving Regency, (y) require premature disclosure of material information that
Regency has a bona fide business purpose for preserving as confidential or (z) render Regency
unable to comply with requirements under applicable securities laws, then Regency shall have the
right to postpone such requested registration for a period of not more than three months after
receipt of LP Holdings’ request, such right pursuant to this Section 2.01(b) not to be utilized
more than twice in any twelve-month period.

          (b) Delay Rights. Notwithstanding anything to the contrary contained herein, Regency
may, upon written notice to any Selling Holder whose Registrable Securities are included in the
Shelf Registration Statement, suspend such Selling Holder’s use of any prospectus which is a part
of the Shelf Registration Statement (in which event the Selling Holder shall discontinue sales of
the Registrable Securities pursuant to the Shelf Registration Statement) if Regency (i) is pursuing
a financing, acquisition, merger, reorganization, disposition or other similar transaction and
determines in good faith that its ability to pursue or consummate such a transaction would be
materially adversely affected by any required disclosure of such transaction in the Shelf
Registration Statement or (ii) has experienced some other material non-public event the disclosure
of which at such time, in the good faith judgment of Regency would materially adversely affect
Regency. Upon disclosure of such information or the termination of the condition described above,
Regency shall provide prompt notice to the Selling Holders whose Registrable Securities are
included in the Shelf Registration Statement, and shall promptly

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terminate any suspension of sales it has put into effect and shall take such other actions to
permit registered sales of Registrable Securities as contemplated in this Agreement.

     Section 2.02 Underwritten Offering. In the event that the Selling Holders holding a
majority of the Common Units covered by this Agreement elect to dispose of Registrable Securities
under the Shelf Registration Statement pursuant to an Underwritten Offering, Regency shall enter
into an underwriting agreement in customary form with the Managing Underwriter or Underwriters,
which shall include, among other provisions, indemnities to the effect and to the extent provided
in Section 2.07, and shall take all such other reasonable actions as are requested by the Managing
Underwriter in order to expedite or facilitate the registration and disposition of the Registrable
Securities. In connection with any Underwritten Offering under this Agreement, Regency shall be
entitled to select the Managing Underwriter or Underwriters, subject to the consent of LP Holdings
not to be unreasonably withheld. No Selling Holder may participate in such Underwritten Offering
unless such Selling Holder agrees to sell its Registrable Securities on the basis provided in such
underwriting agreement and competes and executes all questionnaires, powers of attorney,
indemnities and other documents reasonably required under the terms of such underwriting agreement.
Each Selling Holder may, at its option, require that any or all of the representations and
warranties by, and the other agreements on the part of, Regency to and for the benefit of such
underwriters also be made to and for such Selling Holder’s benefit and that any or all of the
conditions precedent to the obligations of such underwriters under such underwriting agreement also
be conditions precedent to its obligations. No Selling Holder shall be required to make any
representations or warranties to or agreements with Regency other than representations, warranties
or agreements regarding such Selling Holder and its ownership of the securities being registered on
its behalf and its intended method of distribution and any other representation required by law.
If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to
withdraw therefrom by notice to Regency and the Managing Underwriter; provided, however, that such
withdrawal must be made up to and including the time of pricing of such offering to be effective.
No such withdrawal or abandonment shall affect Regency’s obligation to pay Registration Expenses.

     Section 2.03 Registration Procedures. In connection with its obligations contained in
Section 2.01, Regency will, as expeditiously as possible:

          (a) prepare and file with the Commission such amendments and supplements to the Shelf
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
the Shelf Registration Statement effective for the Effectiveness Period and as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by the Shelf Registration Statement;

          (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Shelf Registration Statement or any supplement or amendment thereto, upon request,
copies of reasonably completes drafts of all such documents proposed to be filed (including
furnishing or making available exhibits and each document incorporated by reference therein to the
extent then required by the rules and regulations of the Commission), and provide each such Selling
Holder the opportunity to object to any information pertaining to such Selling Holder and its plan
of distribution that is contained therein and make the corrections reasonably requested by such
Selling Holder with respect to such information prior to filing the

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Shelf Registration Statement or supplement or amendment thereto, and (ii) such number of
copies of the Shelf Registration Statement and the prospectus included therein and any supplements
and amendments thereto as such Persons may reasonably request in order to facilitate the public
sale or other disposition of the Registrable Securities covered by such Shelf Registration
Statement;

          (c) if applicable, use its reasonable best efforts to register or qualify the Registrable
Securities covered by the Shelf Registration Statement under the securities or blue sky laws of
such jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing
Underwriter, shall reasonably request, provided that neither Regency nor its general partner will
be required to qualify generally to transact business in any jurisdiction where it is not then
required to so qualify or to take any action which would subject it to general service of process
in any such jurisdiction where it is not then so subject;

          (d) promptly notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the filing of the
Shelf Registration Statement or any prospectus or prospectus supplement to be used in connection
therewith, or any amendment or supplement thereto, and, with respect to such Shelf Registration
Statement, when the same has become effective; and (ii) any written comments from the Commission
with respect to any filing referred to in clause (i) and any written request by the Commission for
amendments or supplements to the Shelf Registration Statement or any prospectus or prospectus
supplement thereto;

          (e) immediately notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the happening of any
event as a result of which the prospectus or prospectus supplement contained in the Shelf
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, in the light of the circumstances then existing; (ii) the issuance or
threat of issuance by the Commission of any stop order suspending the effectiveness of the Shelf
Registration Statement, or the initiation of any proceedings for that purpose; or (iii) the receipt
by Regency of any notification with respect to the suspension of the qualification of any
Registrable Securities for sale under the applicable securities or blue sky laws of any
jurisdiction. Following the provision of such notice, Regency agrees to as promptly as practicable
amend or supplement the prospectus or prospectus supplement or take other appropriate action so
that the prospectus or prospectus supplement does not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, in the light of the circumstances then existing, and to take
such other action as is necessary to remove a stop order, suspension, threat thereof or proceedings
related thereto;

          (f) furnish to each Selling Holder copies of any and all transmittal letters or other
correspondence with the Commission or any other governmental agency or self-regulatory body or
other body having jurisdiction (including any domestic or foreign securities exchange) relating to
such offering of Registrable Securities;

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          (g) in the case of an Underwritten Offering, furnish upon request and addressed to the
underwriters and to the Selling Holders, (i) an opinion of counsel for Regency, dated the effective
date of the closing under the underwriting agreement, and (ii) a “comfort letter”, dated the
effective date of the applicable registration statement or the date of any amendment or supplement
thereto and a letter of like kind dated the date of the closing under the underwriting agreement,
in each case, signed by the independent public accountants who have certified Regency’s financial
statements included or incorporated by reference into the applicable registration statement, and
each of the opinion and the “comfort letter” shall be in customary form and covering substantially
the same matters with respect to such registration statement (and the prospectus and any prospectus
supplement included therein) and as are customarily covered in opinions of issuer’s counsel and in
accountants’ letters delivered to the underwriters in Underwritten Offerings of securities, and
such other matters as such underwriters may reasonably request;

          (h) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months, but not more than 18
months, beginning with the first full calendar month after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 promulgated thereunder;

          (i) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Regency personnel as is reasonable and customary to enable
such parties to establish a due diligence defense under the Securities Act; provided that Regency
need not disclose any information to any such representative unless and until such representative
has entered into a confidentiality agreement with Regency;

          (j) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Regency are then listed;

          (k) use its reasonable best efforts to cause the Registrable Securities to be registered with
or approved by such other governmental agencies or authorities as may be necessary by virtue of the
business and operations of Regency to enable the Selling Holders to consummate the disposition of
such Registrable Securities;

          (l) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement; and

          (m) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities, including participation in “roadshows” as are reasonably required
in order to expedite or facilitate the disposition of such Registrable Securities and Regency shall
secure the participation of its senior management for such purposes.

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     Each Selling Holder, upon receipt of notice from Regency of the happening of any event of the
kind described in subsection (e) of this Section 2.03, shall forthwith discontinue disposition of
the Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by subsection (e) of this Section 2.03 or until it is advised in
writing by Regency that the use of the prospectus may be resumed, and has received copies of any
additional or supplemental filings incorporated by reference in the prospectus, and, if so directed
by Regency, such Selling Holder will, or will request the managing underwriter or underwriters, if
any, to deliver to Regency (at Regency’s expense) all copies in their possession or control, other
than permanent file copies then in such Selling Holder’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

     Section 2.04 Cooperation by Holders. Regency shall have no obligation to include in
the Shelf Registration Statement units of a Holder who has failed to timely furnish such
information which, in the opinion of counsel to Regency, is reasonably required in order for the
Shelf Registration Statement or any prospectus or prospectus supplement thereto, as applicable, to
comply with the Securities Act.

     Section 2.05 Restrictions on Public Sale by Holders of Registrable Securities. Each
Holder of Registrable Securities who is included in the Shelf Registration Statement agrees not to
effect any public sale or distribution of the Registrable Securities during the lock-up period
contained in a prospectus supplement filed with the Commission with respect to the pricing of an
Underwritten Offering, provided that (i) Regency gives written notice to such Holder of the date of
the commencement and termination of such period with respect to any such Underwritten Offering and
(ii) the duration of the foregoing restrictions shall be no longer than the duration of the
shortest restriction generally imposed by the underwriters on Regency or on the officers or
directors or any other unitholder of Regency on whom a restriction is imposed.

     Section 2.06 Expenses.

          (a) Certain Definitions. “Registration Expenses” means all expenses incident
to Regency’s performance under or compliance with this Agreement to effect the registration of
Registrable Securities in a Shelf Registration, and the disposition of such securities, including,
without limitation, all registration, filing, securities exchange listing fees, all registration,
filing, qualification and other fees and expenses of complying with securities or blue sky laws,
fees of the Financial Industry Regulatory Authority, transfer taxes and fees of transfer agents and
registrars, all word processing, duplicating and printing expenses, the fees and disbursements of
counsel and independent public accountants for Regency, including the expenses of any special
audits or “comfort letters” required by or incident to such performance and compliance. Except as
otherwise provided in Section 2.07 hereof, Regency shall not be responsible for legal fees incurred
by Holders in connection with the exercise of such Holders’ rights hereunder. In addition, Regency
shall not be responsible for any “Selling Expenses,” which means all underwriting fees, discounts
and selling commissions allocable to the sale of the Registrable Securities.

          (b) Expenses. Regency will pay all Registration Expenses in connection with any Shelf
Registration Statement filed pursuant to Section 2.01(a) of this Agreement, whether or

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not the Shelf Registration Statement becomes effective or any sale is made pursuant to the
Shelf Registration Statement. Each Selling Holder shall pay all Selling Expenses in connection with
any sale of its Registrable Securities hereunder.

     Section 2.07 Indemnification.

          (a) By Regency. In the event of a registration of any Registrable Securities under
the Securities Act pursuant to this Agreement, Regency will indemnify and hold harmless each
Selling Holder thereunder, its directors and officers and each underwriter pursuant to the
applicable underwriting agreement with such underwriter and each Person, if any, who controls such
Selling Holder or underwriter within the meaning of the Securities Act and the Exchange Act,
against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees
and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder or
underwriter or controlling Person may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in the Shelf Registration Statement, any preliminary prospectus or
final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse each such Selling
Holder, its directors and officers, each such underwriter and each such controlling Person for any
legal or other expenses reasonably incurred by them in connection with investigating or defending
any such Loss or actions or proceedings; provided, however, that Regency will not be liable in any
such case if and to the extent that any such Loss arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity with
information furnished by such Selling Holder, such underwriter or such controlling Person in
writing specifically for use in the Shelf Registration Statement or any prospectus contained
therein or any amendment or supplement thereof. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such Selling Holder or any such
director, officer or controlling Person, and shall survive the transfer of such securities by such
Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and jointly to
indemnify and hold harmless Regency, its directors and officers, and each Person, if any, who
controls Regency within the meaning of the Securities Act or of the Exchange Act to the same extent
as the foregoing indemnity from Regency to the Selling Holders, but only with respect to
information regarding such Selling Holder furnished in writing by or on behalf of such Selling
Holder expressly for inclusion in the Shelf Registration Statement or any prospectus contained
therein or any amendment or supplement thereof relating to the Registrable Securities; provided,
however, that the liability of each Selling Holder shall not be greater in amount than the dollar
amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale
of the Registrable Securities giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in

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writing thereof, but the omission so to notify the indemnifying party shall not relieve it
from any liability which it may have to any indemnified party other than under this Section 2.07.
The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified
party and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 2.07 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense and employ counsel or (ii) if the defendants in
any such action include both the indemnified party and the indemnifying party and counsel to the
indemnified party shall have concluded that there may be reasonable defenses available to the
indemnified party that are different from or additional to those available to the indemnifying
party, or if the interests of the indemnified party reasonably may be deemed to conflict with the
interests of the indemnifying party, then the indemnified party shall have the right to select a
separate counsel and to assume such legal defense and otherwise to participate in the defense of
such action, with the reasonable expenses and fees of one such separate counsel (firm) and other
reasonable expenses related to such participation to be reimbursed by the indemnifying party as
incurred. Notwithstanding any other provision of this Agreement, no indemnified party shall settle
any action brought against it with respect to which it is entitled to indemnification hereunder
without the consent of the indemnifying party, unless the settlement thereof imposes no liability
or obligation on, and includes a complete and unconditional release from all liability of, the
indemnifying party.

          (d) Contribution. If the indemnification provided for in this Section 2.07 is held by
a court or government agency of competent jurisdiction to be unavailable to Regency or any Selling
Holder or is insufficient to hold it harmless in respect of any Losses, then each such indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Losses as between Regency on the one hand and
such Selling Holder on the other hand, in such proportion as is appropriate to reflect the relative
fault of Regency on the one hand and of such Selling Holder on the other in connection with the
statements or omissions which resulted in such Losses, as well as any other relevant equitable
considerations; provided, however, that in no event shall such Selling Holder be required to
contribute an aggregate amount in excess of the dollar amount of proceeds (net of Selling Expenses)
received by such Selling Holder from the sale of Registrable Securities giving rise to such
indemnification. The relative fault of Regency on the one hand and each Selling Holder on the
other hand shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
has been made by, or relates to, information supplied by such party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The parties hereto agree that it would not be just and equitable if contributions
pursuant to this paragraph were to be determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the first
sentence of this paragraph. The amount paid by an indemnified party as a result of the Losses
referred to in the first sentence of this paragraph shall be deemed to include any legal and other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any Loss which is the subject of this paragraph. No person guilty of

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fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.07 shall be in addition
to any other rights to indemnification or contribution which an indemnified party may have pursuant
to law, equity, contract or otherwise.

     Section 2.08 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, Regency agrees to use its reasonable best efforts
to:

          (a) Make and keep public information regarding Regency available, as those terms are
understood and defined in Rule 144 of the Securities Act, at all times from and after the date
hereof;

          (b) File with the Commission in a timely manner all reports and other documents required of
Regency under the Securities Act and the Exchange Act at all times from and after the date hereof;
and

          (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
request a copy of the most recent annual or quarterly report of Regency, and such other reports and
documents so filed as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing such Holder to sell any such securities without registration.

     Section 2.09 Transfer or Assignment of Registration Rights. The rights to cause
Regency to include Registrable Securities in a Shelf Registration Statement may be transferred or
assigned by LP Holdings to one or more transferee(s) or assignee(s) of such Registrable Securities,
provided that (a) such transferee or assignee is an Affiliate of LP Holdings or receives at least
20% of the Common Units covered by this Agreement, (b) Regency is given written notice prior to any
said transfer or assignment, stating the name and address of each such transferee and identifying
the securities with respect to which such registration rights are being transferred or assigned,
and (c) each such transferee or assignee assumes in writing responsibility for its portion of the
obligations of LP Holdings under this Agreement.

     Section 2.10 Information by Holder. Any Holder or Holders of Registrable Securities
included in any registration statement shall promptly furnish to Regency such information regarding
such Holder or Holders and the distribution proposed by such Holder or Holders as Regency may
reasonably request and as shall be required in connection with any registration, qualification or
compliance referred to herein.

ARTICLE III.

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, courier service or personal delivery:

     if to Regency to:

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Regency Energy Partners LP

2001 Bryan Street, Suite 3700

Dallas, TX 75201

Telephone:

Facsimile:

Attention: Chief Legal Officer

with a copy to:

Mayor Brown LLP

700 Louisiana Street

Houston, TX 77002

Telephone: (713) 328-2718

Facsimile: (713) 238-4888

Attention: Dan A. Fleckman

if to LP Holdings to:

GE Energy Financial Services

800 Long Ridge Road

Stanford, Connecticut 06927

Telephone: (203) 316-7355

Facsimile: (203) 961-2606

Attention: Portfolio-Regency

With a copy (not itself constituting notice) to:

GE Energy Financial Services

800 Long Ridge Road

Stanford, Connecticut 06927

Telephone: (203) 357-4151

Facsimile: (203) 357-6632

Attention: General Counsel

and

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Telephone: (212) 906-1259

Facsimile: (212) 751-4864

Attention: Charles E. Carpenter

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by any other means.

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     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.03 Assignment of Rights. All or any portion of the rights and obligations
of LP Holdings under this Agreement may be transferred or assigned by LP Holdings only in
accordance with Section 2.09 of this Agreement.

     Section 3.04 Recapitalization, Exchanges, etc. Affecting the Common Units. The
provisions of this Agreement shall apply to the full extent set forth herein with respect to any
and all units of Regency or any successor or assign of Regency (whether by merger, consolidation,
sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations,
recapitalizations and the like occurring after the date of this Agreement.

     Section 3.05 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity which such Person may have.

     Section 3.06 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.07 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.08 Governing Law. The laws of the State of Delaware shall govern this
Agreement without regard to principles of conflict of laws.

     Section 3.09 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.10 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by Regency set forth herein. This

13

 

Agreement supersedes all prior agreements and understandings between the parties with respect
to such subject matter.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written
amendment signed by Regency and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. In the event any claim is made by a party relating to
any conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or
persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the
request of a particular party or its counsel.

[Signature page follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 
	 	 	REGENCY ENERGY PARTNERS LP	
	 
	 	 	 	 	
	 

	 	By:
	 	Regency GP LP, its General Partner	
	 
	 	 	 	 	
	 

	 	By:
	 	Regency GP LLC, its General Partner	
	 
	 	 	 	 	
	 

	 	By:  	/s/ Byron R. Kelley 	
	 

	 	 	 	 
	 

	 		Name:	  Byron R. Kelley	
	 

	 	 	 	 	
	 

	 		Title:	  Chairman, President and
Chief Executive Officer	
	 

	 	 	 	 	
	 
	 	 	 	 	
	 	 	REGENCY LP ACQUIRER, L.P.	
	 
	 	 	 	 	
	 

	 	By:
	 	EFS Regency GP Holdco II, LLC,

its General Partner	
	 
	 	 	 	 	
	 

	 	By:
	 	Aircraft Services Corporation,

its Managing Member	
	 
	 	 	 	 	
	 

	 	By:  	/s/ Mark Mellana	
	 

	 	 	 	
	 

	 		Name:	  Mark Mellana	
	 

	 	 	 	 	
	 

	 		Title:	  Authorized Signatory	
	 

	 	 	 	 	
	 

	 		 	 	

[Signature
page to Registration Rights Agreement (Regency Energy Partners LP)]exv4w3

Exhibit 4.3

INVESTOR RIGHTS AGREEMENT

     This Investor Rights Agreement (this “Agreement”) is made and entered into effective
as of May 26, 2010, by and among Regency LP Acquirer LP, a Delaware limited partnership
(the “Investor”), Regency GP LP, a Delaware limited partnership (the “General
Partner”), and Regency GP LLC, a Delaware limited liability (the “Company”) and Energy
Transfer Equity, L.P., a Delaware limited partnership (the “Sole Member,” and collectively
with the General Partner and the Company, the “Partnership Parties”). The above-named
entities are sometimes referred to in this Agreement each as a “Party” and collectively as
the “Parties.”

     Capitalized terms used but not defined herein have the meanings ascribed to such terms in the
Amended and Restated Agreement of Limited Partnership of Regency Energy Partners LP
(“Regency”), dated February 3, 2006, as amended through the date of this Agreement (the
“Regency Partnership Agreement”).

R E C I T A L S

     A. The Company is the general partner of the General Partner.

     B. Pursuant to that certain General Partner Purchase Agreement dated as of May 10, 2010 (the
“GP Purchase Agreement”) by and among the Sole Member, ETE GP Acquirer LLC, a Delaware
limited liability company (“ETE GP Buyer”), and Regency GP Acquirer LP, a Delaware limited
partnership and an affiliate of the Investor (“Seller”), Seller has agreed to transfer (i)
100% of the membership interests in the Company and (ii) the 99.999% limited partner interest in
the General Partner (collectively, the “Acquired GP Interests”) to ETE GP Buyer in exchange
for the acquisition of 3,000,000 convertible preferred units (the “Convertible Preferred
Units”) of the Sole Member having the terms set forth in Amendment No. 3 to the Third Amended
and Restated Agreement of Limited Partnership of Energy Transfer Equity, L.P. (the “ETE
Partnership Agreement”)).

     C. As a condition to Seller’s sale of the Acquired GP Interests, the Partnership Parties have
agreed to grant the Investor certain management and investor rights as more fully set forth herein
and the Investor has agreed to be bound by the obligations set forth herein.

     NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter
set forth, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1. REPRESENTATIONS AND WARRANTIES.

     1.1 Representations and Warranties by the Investor: The Investor hereby represents
and warrants to the Partnership Parties as follows:

          (a) Authorization and Execution. (i) The Investor has all requisite partnership power
and authority to execute and deliver this Agreement and to perform its obligations under this
Agreement; (ii) the execution, delivery and performance of this Agreement by the Investor and the
consummation of the transactions contemplated hereby have been duly authorized by all

 

 

requisite partnership action on the part of the Investor; (iii) this Agreement has been duly
executed and delivered by the Investor and constitutes a legal, valid and binding obligation of the
Investor, enforceable against it in accordance with its terms, subject as to enforceability, to
bankruptcy, insolvency, reorganization, moratorium and other laws of general applicability relating
to or affecting creditors’ rights and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law); and (iv) no governmental
consent, approval, authorization, notification, license or clearance, and no filing or registration
by the Investor with any governmental or regulatory authority, is required in order to permit the
Investor to perform its obligations under this Agreement, except for such as have been obtained.

          (b) Non-Contravention. The execution and delivery by the Investor of this Agreement,
the performance by the Investor of its obligations hereunder, the consummation of the transactions
contemplated hereby by the Investor and compliance by the Investor with the provisions hereof do
not conflict with or result in any violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to right of termination, cancellation or acceleration of any
obligation or to the loss of a benefit under, or give rise to a right of purchase under, result in
the creation of any lien on any of the assets of the Investor or otherwise result in a detriment to
the Investor under, (i) the agreement of limited partnership of the Investor (as amended to date),
(ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement,
instrument, permit, concession, franchise or license to which the Investor is a party or by which
the Investor or any of its properties or assets is bound or (iii) any judgment, decree, order,
writ, statute, rule or regulation applicable to the Investor (other than any filing that may be
required under Section 13(d) and 16 of the Securities Exchange Act of 1934, as amended).

     1.2 Representations and Warranties by the Partnership Parties. Each of the Partnership
Parties hereby jointly and severally represents and warrants to the Investor as follows:

          (a) Authorization and Execution. (i) Each Partnership Party has all requisite limited
partnership or limited liability company power and authority, as the case may be, to execute and
deliver this Agreement and to perform its obligations under this Agreement; (ii) the execution,
delivery and performance of this Agreement by each Partnership Party and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite limited partnership or
limited liability company action, as the case may be, on the part of such Partnership Party; (iii)
this Agreement has been duly executed and delivered by each Partnership Party and constitutes a
legal, valid and binding obligation of such Partnership Party, enforceable against it in accordance
with its terms, subject as to enforceability, to bankruptcy, insolvency, reorganization, moratorium
and other laws of general applicability relating to or affecting creditors’ rights and to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law); and (iv) no governmental consent, approval, authorization, notification, license
or clearance, and no filing or registration by any Partnership Party with any governmental or
regulatory authority, is required in order to permit any Partnership Party to perform its
obligations under this Agreement, except for such as have been obtained.

2

 

          (b) Non-Contravention. The execution and delivery by each Partnership Party of this
Agreement, the performance by each Partnership Party of its obligations hereunder, the consummation
of the transactions contemplated hereby by each Partnership Party and compliance by each
Partnership Party with the provisions hereof do not conflict with or result in any violation of, or
default (with or without notice or lapse of time, or both) under, or give rise to right of
termination, cancellation or acceleration of any obligation or to the loss of a benefit under, or
give rise to a right of purchase under, result in the creation of any lien on any of the assets of
any Partnership Party or otherwise result in a detriment to any Partnership Party under, (i) the
certificate of limited partnership, certificate of formation, agreement of limited partnership or
limited liability company operating agreement of any Partnership Party (each as amended to date),
(ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement,
instrument, permit, concession, franchise or license to which any Partnership Party is a party or
by which any Partnership Party or any of its properties or assets is bound or (iii) any judgment,
decree, order, writ, statute, rule or regulation applicable to any Partnership Party.

2. MANAGEMENT RIGHTS.

2.1 Management Rights.

          (a) Subject to compliance with the requirement set forth in Section 2.1(d), prior to
the termination of the rights provided for in this Article 2 pursuant to Sections 3.3 or
3.4, the Investor may, by providing the Company with a written notice, elect (a
“Management Election”) to either (i) have the rights, and be subject to the obligations,
set forth in Section 2.2 (“Director Rights”) or (ii) have the rights, and be
subject to the obligations, set forth in Section 2.3 (“Observer Rights”).

          (b) The Investor may elect to change a Management Election by providing a written notice to
the Company of such an election; provided, however that (i) if at any time the Investor so elects
to have Observer Rights instead of Director Rights, then any Investor Director then in office may
be removed in accordance with the Company Agreement and the Investor shall no longer have Director
Rights and (ii) if at any time the Investor so elects to have Director Rights instead of Observer
Rights, any Investor Observer shall have no further rights to attend any Board meeting or to
receive any Board materials and the Investor shall no longer have the Observer Rights.

          (c) For purposes of this Article 2, references to the Company shall include any
Affiliate (as such term is defined in the Partnership Agreement) of the Company that serves as the
successor general partner of Regency.

          (d) Notwithstanding anything to the contrary herein, the Investor shall have no rights under
this Article 2 until such time as it causes to be delivered to the Sole Member the written
resignations, effective as of the Closing Date (as such term is defined in the GP Purchase
Agreement), of each Director designated to the Board by General Electric Corporation or its
affiliates prior to the date hereof that the Sole Member notifies the Investor in writing that the
Sole Member will require to resign from the Board in connection with the closing of the
transactions contemplated by the GP Purchase Agreement.

3

 

2.2 Director Rights. If the Investor elects to have Director Rights in accordance with
Section 2.2, then, so long as such election is in effect:

          (a) The Investor shall initially be entitled to (i) designate up to two directors of the board
of directors (the “Board”) of the Company (the “Investor Directors”) and (ii)
designate one such Investor Director, to serve on the Audit Committee of the Board (the “Audit
Committee”), provided, however, that the Investor may not designate any Investor Director to
serve on the Audit Committee unless such Investor Director is an “Independent Director” as such
term is defined in the Amended and Restated Limited Liability Company Agreement of the Company,
dated as of February 3, 2006 (the “Company Agreement”). The Investor shall have the right
to designate the initial Investor Directors (the “Initial Investor Directors”), if any,
upon the consummation of the transactions contemplated by the GP Purchase Agreement. The Sole
Member shall appoint such Initial Investor Directors who are so designated and are reasonably
acceptable (as defined in Section 2.2(b)) to the Sole Member, and each Initial Investor
Director shall commence his or her service on the Board and, if applicable, the Audit Committee, as
of the date of this Agreement, provided, however, that no Investor Director shall commence his or
her service on the Audit Committee until any independence determinations required by the Company
Agreement have been appropriately made by the Board. Each Investor Director shall hold office
until his or her successor is appointed pursuant to the terms of this Section 2.2 or until
his or her earlier death, resignation or removal.

          (b) The Investor may elect to remove an Investor Director at any time, with or without cause,
and the Sole Member shall remove such Investor Director at the request of the Investor; provided,
however, that the Investor may not, without designating a replacement Investor Director who is also
an Independent Director reasonably acceptable (as defined below) to the Sole Member, remove any
Investor Director who is serving on the Audit Committee if the removal of such Investor Director
would cause the Audit Committee to not be in compliance with (i) the requirements for such
committee contained in the Company Agreement, (ii) any rules of the National Securities Exchange on
which Regency’s Common Units are listed or admitted to trading or (iii) any requirements under the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder. In addition, the Sole Member may elect, in its sole discretion, to remove any Investor
Director that is no longer reasonably acceptable (as defined below) to the Sole Member. In the
event of the death, resignation or removal of an Investor Director, the Investor may designate a
replacement Investor Director by providing the Company with a written notice (the “Director
Notice”) identifying any replacement Investor Director, who must be reasonably acceptable to
the Sole Member. The Sole Member shall appoint such replacement Investor Directors, and each
replacement Investor Director shall commence his or her service on the Board on the date of
delivery of the Director Notice, provided, however, (i) that no replacement Investor Directors will
be appointed who are not reasonably acceptable to the Sole Member and (ii) that no replacement
Investor Director shall commence his or her service on the Audit Committee until any independence
determinations required by the Company Agreement have been appropriately made by the Board. For
purposes of this Agreement an Investor Director shall be deemed to be “reasonably acceptable” to
the Sole Member so long as such Investor Director is not an employee or director of any direct
competitor of the Company or any of its affiliates and whose appointment would not require the
Company to disclose any of the reportable events described under Item 401(f) of Regulation S-K of
the Securities Act of 1933, as amended, and the rules and regulations thereunder (or any successor
regulation thereto).

4

 

          (c) The Investor Directors shall serve on the Board in accordance with the terms of the
Company Agreement and shall be entitled to all rights and protections provided thereunder to
directors generally; provided that each Investor Director shall also be subject to the restrictions
set forth in Section 2.5.

          (d) The Investor’s right to designate two Investor Directors shall continue for so long as the
Investor and its affiliates own at least fifteen percent (15%) (the “Two Director Ownership
Threshold”) of the Outstanding Common Units of Regency owned by the Investor and its affiliates
as of the date hereof (as adjusted for splits, stock dividends and recapitalizations). Upon the
Investor’s failure to maintain the Two Director Ownership Threshold, but so long as the Investor
and its affiliates continue to own at least ten percent (10%) (the “One Director Ownership
Threshold”) of the Outstanding Common Units of Regency owned by the Investor and its affiliates
as of the date hereof (as adjusted for splits, stock dividends and recapitalizations), then the
Investor shall continue to have the right to designate one Investor Director who shall be a member
of the Audit Committee. Upon the Investor’s failure to maintain the Two Director Ownership
Threshold, the Sole Member may immediately remove one of the Investor Directors if two Investor
Directors continue to serve on the Board. Upon the Investor’s failure to maintain the One Director
Ownership Threshold, the Sole Member may immediately remove all Investor Directors from the Board
and all committees thereof.

          (e) No individual shall serve as an Investor Director if (i) such individual is a plaintiff in
any litigation involving the Company or its affiliates or (ii) in the event that any relevant
antitrust governmental authority requires such individual to terminate his position as an Investor
Director, and in either such event, such individual shall immediately resign as a Director and,
failing such a resignation, the Investor shall remove and replace such individual. In the event
that the Investor fails to remove and replace such individual, the Sole Member may remove such
individual by giving notice to the Investor to the effect that such individual has been removed
pursuant to this clause (e).

2.3 Observer Rights. If the Investor elects to have Observer Rights in accordance with
Section 2.1, then, so long as such election is in effect:

          (a) Subject to the provisions of this Section 2.3, the Investor shall initially be
entitled (but shall not be obligated) to designate up to two persons (each an “Investor
Observer”) to attend all meetings of the Board, solely in the capacity of a non-voting
observer, by providing the Company with a written notice (the “Observer Notice”)
identifying the Investor Observer.

          (b) The Investor may elect to remove a previously appointed Investor Observer at any time,
with or without cause, by providing written notice to the Company.

          (c) Subject to Sections 2.3(d) and (e) and Section 2.5, the Company
shall provide to each Investor Observer, concurrently with the Directors, and in the same manner,
notice of each meeting of the Board and copies of any materials provided to the Directors,
including all materials provided to Directors in connection with any action to be taken by the
Board without a meeting and copies of any written consents.

5

 

          (d) Each Investor Observer shall only be allowed to observe meetings of the full Board (and
not committee meetings or any meetings of the Board in executive session), provided, however that
one Investor Observer shall be allowed to observe meetings of the Audit Committee, and no Investor
Observer shall in any circumstances have any right to participate in any vote, consent or other
action of the Board or any committee thereof, nor shall any Investor Observer’s presence, vote,
consent or other action be required for any action of the Board or any committee thereof.

          (e) The Investor acknowledges and agrees that the Company reserves the right (i) not to
provide notice of any meeting of the Board, or any committee thereof, or any materials provided in
connection with any meeting or otherwise to any Investor Observer, (ii) to exclude the Investor
Observers from any meeting or portion thereof and (iii) to redact portions of any Board materials
delivered to the Investor Observers, in each case where and to the extent that the Board determines
in good faith (without the participation of any Investor Director) that the delivery of any
materials or attendance at any meeting or portion thereof by any Investor Observer would or may be
reasonably necessary: (A) to preserve attorney-client, work product or similar privilege, (B) to
comply with the terms and conditions of confidentiality agreements with third parties, (C) to
comply with applicable law, (D) if the Board determines that there exists, with respect to the
subject of a meeting or of Board materials, an actual or potential conflict of interest between the
Investor or any Investor Observer and the Company or (E) to the extent permitted pursuant to
Section 2.5; provided that, in the event any of the actions described in subclauses (i),
(ii) or (iii) of this Section 2.3(e) are taken, the Board, to the extent practicable, shall
make reasonable and appropriate substitute disclosure arrangements under circumstances in which the
restrictions of subclauses (A)-(E) of this Section 2.3(e) apply, including the execution of
a joint defense agreement to allow the Investor Observer to obtain information protected by the
attorney client privilege or work product doctrine, or as otherwise restricted for the reasons
described in subclauses (A)-(E) of this Section 2.3(e).

          (f) Any Investor Observer must, prior to being permitted to attend any Board meeting or
receive any materials pursuant to this Section 2.3, enter into an agreement (a
“Investor Observer Agreement”) with and for the benefit of the Company in the form attached
hereto as Exhibit A affirming the terms of this Agreement and agreeing to abide with the
limitations on observation rights, confidentiality restrictions and other terms set forth herein
and therein.

          (g) No individual shall serve as an Investor Observer if (i) such individual is a plaintiff in
any litigation involving the Company or its affiliates or (ii) in the event that any relevant
antitrust governmental authority requires such individual to terminate his position as an Investor
Observer, and either such event, such individual shall immediately resign as an Investor Observer
and, failing such a resignation, the Investor shall remove and replace such individual. In the
event that the Investor fails to remove and replace such individual, the Sole Member may remove
such individual by giving notice to the Investor to the effect that such individual has been
removed pursuant to this clause (g).

6

 

          (h) The Investor’s right to designate two Investor Observers shall continue for so long as the
Investor maintains the Two Director Ownership Threshold. Upon the Investor’s failure to maintain
the Two Director Ownership Threshold, but so long as the Investor maintains the One Director
Ownership Threshold, then the Investor shall continue to have the right to designate one Investor
Observer.

2.4 Confidentiality.

          (a) The Investor agrees to (i) hold in confidence all confidential information and materials
that it may receive from any Investor Observer or Investor Director (collectively “Investor
Representatives”), who receives, or is given access to such information and materials, in
connection with meetings of the Board and committees thereof pursuant to this Agreement
(“Confidential Information”) and (ii) not disclose such Confidential Information to any
third parties that are not either a, direct or indirect, wholly-owned subsidiaries of General
Electric Capital Corporation (the “GE Capital Affiliates”) or employed by the Investor or
GE Capital Affiliates; provided that, upon making any such disclosure, the Investor shall notify
such persons of the confidential nature of the information provided and each such person’s
obligation to preserve the confidentiality of such information consistent with the provisions of
this Agreement. Notwithstanding the foregoing, the Investor may disclose such Confidential
Information to its lawyers, accountants, auditors, and other professional advisers who have a duty
of confidentiality, and the Investor agrees to instruct each such person regarding the use and
disclosure restrictions applicable to Confidential Information as set forth in this Agreement. The
Investor shall not, and shall ensure that all persons receiving Confidential Information from the
Investor shall not, use any such Confidential Information for any purpose other than the Investor’s
internal monitoring of its investment in Regency and shall be responsible for any breach of this
Agreement by any such person.

          (b) Each Party agrees that the Confidential Information shall not include information that:

     (i) has become, through no act or failure to act on the part of the Investor or
any Investor Representative, generally known or available to the public (including
information that becomes available to the Investor by wholly lawful inspection or
analysis of products sold to the public without reliance on information, knowledge,
or data provided by the Company that has not become publicly known or been made
available in the public domain);

     (ii) has been acquired by the Investor without any obligation of
confidentiality before receipt of such information from the Company;

     (iii) has been furnished to the Investor by a third party without, to the
Investor’s knowledge, any obligation of confidentiality;

     (iv) is information that the Investor can reasonably document was independently
developed by or for the Investor;

7

 

     (v) is required to be disclosed pursuant to law, regulation, or by order of a
court of competent jurisdiction; provided that the Investor shall disclose only that
portion of the Confidential Information that is legally required to be disclosed
and, to the extent reasonably practicable under the circumstances, promptly notify
the Company of the Confidential Information to be disclosed and of the circumstances
in which the disclosure is alleged to be required prior to disclosure and use its
commercially reasonable efforts to cooperate with the Company in its efforts to seek
a protective order or other appropriate remedy and/or waive compliance with the
terms of this Agreement;

     (vi) is disclosed with the prior written consent of the Company; or

     (vii) is disclosed for the purpose of enforcement of this Agreement.

2.5 Commercially Sensitive Information.

          (a) For purposes of this Section 2.5, the following terms have the following meanings:

     (i) “Commercially Sensitive Information” means, with respect to any
person, information about (1) Commercial Development Activities or (2) other
competitively sensitive information of such person related to Potentially
Overlapping Business including, without limitation, (i) information regarding the
names of or prices, costs, margins, volumes and contractual terms for any current or
potential customer, (ii) any method, tool or computer program used to determine
prices for any asset or service, (iii) all plans or strategies used or adopted to
negotiate, target or identify a current or potential customer or group of customers
for any asset or service or to expand existing service offerings or offer a new
service, (iv) all information regarding plans and prospective budgets to expand an
existing facility or build a new facility, (v) all information regarding a proposal
to buy an existing facility, (vi) information related to the capacity and capacity
utilization of any facility, (vii) information regarding any opportunity to acquire
a business, asset or entity or to develop or construct any new interstate or
intrastate natural gas pipeline, interstate or intrastate natural gas liquids
pipeline, natural gas gathering system, natural gas treating, processing or
fractionating facilities, natural gas storage facility, or any other midstream
natural gas assets or facilities; any natural gas compression services business or
assets; any wholesale or retail propane facility or business; any other midstream or
natural gas related assets, such as compression facilities, shipping facilities or
marketing assets and (viii) any other confidential information regarding any person
that owns, operates or is an affiliate of any person that is identified in clauses
(i) through (vii) if the sharing of such information by such person with another
party to this Statement would reasonably be expected to constitute a violation of
any fiduciary duty, law or any contract to which such person is a party, provided,
however, that Commercially Sensitive Information related to a person shall not
include any information that is otherwise in the public domain.

8

 

     (ii) “Commercial Development Activities” means information with respect
to (i) proposed changes to or transactions involving any Potentially Overlapping
Business, (ii) any plans and strategies dealing with Potentially Overlapping
Business and (iii) any opportunities to construct or acquire, directly or indirectly
(including, without limitation, by means of joint venture or by means of acquisition
of assets, equity interest in an entity, contractual rights to capacity or use, or
otherwise), any interstate or intrastate natural gas pipeline, interstate or
intrastate natural gas liquids pipeline, natural gas gathering system, natural gas
treating, processing or fractionating facilities, natural gas storage facility, or
any other midstream natural gas assets or facilities; any natural gas compression
services business or assets; any wholesale or retail propane facility or business;
any other midstream or natural gas related assets, such as compression facilities,
shipping facilities or marketing assets.

     (iii) “Potentially Overlapping Business” means such assets, business
operations or business opportunities of Regency and its affiliates that are, or
could potentially be competitive with the assets, business operations or business
opportunities of General Electric Corporation and its affiliates (excluding the
General Partner, the Company, Regency or any of their respective subsidiaries).

          (b) Notwithstanding anything to the contrary in this Agreement, the Company reserves the right
(i) not to provide notice of any meeting of the Board or any committee thereof or any materials
provided in connection with any meeting or otherwise to any Investor Representative, (ii) to
exclude any Investor Representative from any meeting or portion thereof and (iii) to redact
portions of any Board or committee materials delivered to any Investor Representative, in each
case where and solely to the extent that the Board reasonably determines in good faith (without the
participation of any Investor Director) that the delivery of any materials or attendance at any
meeting or portion thereof by an Investor Representative would or may result in the disclosure of
Commercially Sensitive Information to such Investor Representative.

3. ASSIGNMENT, AMENDMENT AND TERMINATION.

     3.1 Assignment. Except as expressly permitted by the terms hereof, neither this
Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the
Parties without the prior written consent of the other Party, except that the Investor may transfer
or assign any of its rights and obligations under this Agreement to any direct or indirect
affiliate of General Electric Capital Corporation and the Sole Member shall require any successor
or assign of the Sole Member’s interest in the Acquired GP Interests to assume the Sole Member’s
rights and duties under this Agreement, which assignment may be made without the Investor’s prior
written consent.

     3.2 Amendment of Rights. Any provision of this Agreement may be amended and the
observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively) with the written consent of each party hereto.

9

 

     3.3 Termination of Management Rights. Upon the Investor’s failure to maintain the Two
Director Ownership Threshold, the Investor’s rights under Sections 2.2 and 2.3
shall be modified as provided in Sections 2.2(d) and 2.3(h). Upon the Investor’s
failure to maintain the One Director Ownership Threshold, all of the Investor’s rights under
Sections 2.1, 2.2 and 2.3 shall terminate.

     3.4 Termination of Agreement. If at any time the Sole Member no longer owns a
majority of the outstanding membership interests of the Company, then this Agreement shall
automatically terminate and be of no further force or effect, provided, however that the Sole
Member shall require any purchaser acquiring a majority of the outstanding membership interests of
the Company from the Sole Member to provide the Investor with substantially similar rights to those
contained in this Agreement. The provisions of Section 2.4 and Article 4 shall
survive any termination of this Agreement.

4. GENERAL PROVISIONS.

     4.1. Notices. All notices or requests or consents provided for or permitted to be
given pursuant to this Agreement must be in writing and must be given by depositing same in the
United States mail, addressed to the person to be notified, postpaid, and registered or certified
with return receipt requested or by delivering such notice in person or by telecopier or telegram
to such party. Notice given by personal delivery or mail shall be effective upon actual receipt.
Notice given by telegram or telecopier shall be effective upon actual receipt if received during
the recipient’s normal business hours, or at the beginning of the recipient’s next business day
after receipt if not received during the recipient’s normal business hours. All notices to be sent
to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at
such other address as such Party may stipulate to the other Parties in the manner provided in this
Section 4.1:

ANY PARTNERSHIP PARTY:

Energy Transfer Equity, L.P.

3738 Oak Lawn

Dallas, Texas 75219

Attention: General Counsel

With a copy (not itself constituting notice) to:

Vinson & Elkins LLP

1001 Fannin, Suite 2500

Houston, Texas 77002

Telephone: (713) 758-3613

Facsimile: (713) 615-5725

Attention: Douglas E. McWilliams

10

 

THE INVESTOR:

Regency LP Acquirer LP

c/o GE Energy Financial Services

800 Long Ridge Road

Stamford, Connecticut 06927

Telephone:

Facsimile: (203) 961-2606

Attention: Portfolio-Regency

With a copy (not itself constituting notice) to:

Regency LP Acquirer LP

c/o GE Energy Financial Services

800 Long Ridge Road

Stamford, Connecticut 06927

Telephone:

Facsimile: (203) 357-6632

Attention: General Counsel

and

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Telephone: (212) 906-1259

Facsimile: (212) 751-4864

Attention: Charles E. Carpenter

     4.2 Entire Agreement. This Agreement constitutes the entire agreement of the Parties
relating to the matters contained herein, superseding all prior contracts or agreements, whether
oral or written, relating to the matters contained herein.

     4.3 Governing Law. This Agreement shall be subject to and governed by the laws of the
State of Delaware, excluding any conflicts-of-law rule or principle that might refer the
construction or interpretation of this Agreement to the laws of another state. Each Party hereby
irrevocably submits to the exclusive jurisdiction of (a) the Delaware Court of Chancery, and (b)
any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of
Chancery declines to accept jurisdiction over a particular matter, any state or federal court
within the State of Delaware), for the purposes of any proceeding arising out of this Agreement or
the transactions contemplated hereby. The Parties irrevocably and unconditionally waive (and agree
not to plead or claim) any objection to the laying of venue of any proceeding arising out of this
Agreement or the transactions contemplated hereby in (i) the Delaware Court of Chancery, or (ii)
any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of
Chancery declines to accept jurisdiction over a particular matter, any state or federal court
within the State of Delaware) or that any such proceeding brought in any such court has been brought
in an inconvenient forum.

11

 

     4.4 Waiver Of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
ACTION OR PROCEEDING TO ENFORCE OR TO DEFEND ANY RIGHTS UNDER THIS AGREEMENT SHALL BE TRIED BEFORE
A COURT AND NOT BEFORE A JURY.

     4.5 Severability. Each portion of this Agreement is intended to be severable. If any
term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or
invalidity shall not affect the validity of the remainder of this Agreement.

     4.6 Third Parties. Nothing in this Agreement, express or implied, is intended to
confer upon any person, other than the Parties and their successors and permitted assigns, any
rights or remedies under or by reason of this Agreement.

     4.7 Successors and Assigns. Subject to the provisions of Section 3.1, the
provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the
successors and permitted assigns of the Parties.

     4.8 Construction. As used in this Agreement, unless expressly stated otherwise or the
context requires otherwise, (a) all references to a “Section” or “subsection” shall be to a Section
or subsection of this Agreement, (b) the words “this Agreement,” “hereof,” “hereunder,” “herein,”
“hereby,” or words of similar import shall refer to this Agreement as a whole and not to a
particular Section, subsection, clause or other subdivision hereof, (c) the words used herein shall
include the masculine, feminine and neuter gender, and the singular and the plural, (d) the word
“including” shall mean “including, without limitation,” (e) the word “day” or “days” shall mean a
calendar day or days and (f) the term “affiliate” shall mean a person that directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is under common control with,
a specified person; provided that a person shall be deemed to control another person if such first
Person possesses, directly or indirectly, the power to direct, or cause the direction of, the
management and policies of such other person, whether through the ownership of voting securities,
by contract or otherwise. The headings of the Sections of this Agreement are included for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction or interpretation hereof or thereof.

     4.9 Counterparts. This Agreement may be executed simultaneously in any number of
counterparts (including facsimile counterparts), each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

     4.10 Specific Performance. Each Partnership Party, on the one hand, and the Investor,
on the other hand, acknowledges and agrees that irreparable injury would occur in the event any of
the provisions of Article 2 were not performed in accordance with their specific terms or
were otherwise breached and that such injury would be not be compensable in damages. It is
accordingly agreed that the Parties shall be entitled to specific enforcement of the terms of

12

 

Article 2, and no party will take any action, directly or indirectly, in opposition to the
other Party seeking relief on the grounds that any other remedy or relief is available at law or in
equity.

[Remainder of Page Intentionally Blank]

13

 

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

	 	 	 	 	 
	 	INVESTOR:

Regency LP Acquirer LP

 	 
	 	By:  	EFS
Regency GP Holdco II, LLC,

     its general partner

 	 
	 	By:  	Aircraft
Services Corporation

     its managing member

 	 
	 	By:  	/s/
Mark Mellana	 
	 	Name:  	Mark
Mellana	 
	 	Its: 	Authorized Signatory	 
	 
	 	PARTNERSHIP PARTIES:

Energy Transfer Equity, L.P.

 	 
	 	By:  	LE GP, LLC, 	 
	 	 	     its general partner 	 
	 
	 	 	 
	 	By:  	/s/ John W. McReynolds	 
	 	Name:  	John W. McReynolds	 
	 	Its: 	President
and Chief Financial Officer	 
	 
	 	Regency GP LP

 	 
	 	By:  	Regency GP LLC, 	 
	 	 	     its general partner 	 
	 
	 	 	 
	 	By:  	/s/ Byron R. Kelley	 
	 	Name:  	Byron R. Kelley	 
	 	Its: 	Chairman,
President and Chief Executive Officer	 
	 
	 	Regency GP, LLC

 	 
	 	By:  	/s/ Byron R. Kelley	 
	 	Name:  	Byron R. Kelley	 
	 	Its: 	Chairman,
President and Chief Executive Officer	 
	 

Signature Page to Investor Rights Agreement

 

 

EXHIBIT A

FORM OF INVESTOR OBSERVER AGREEMENT

Exhibit A

 

Regency GP, LLC

c/o Regency Energy Partners LP

2001 Bryan Street

Suite 3700, Dallas, Texas

[________________, ___]

[Name]

[Address]

Re: Regency GP LLC — Investor Observer

Dear [_________]:

     Pursuant to that certain Investor Rights Agreement (the “Investor Rights Agreement”), dated as
of                                         , 2010, by and among Regency LP Acquirer LP, a Delaware limited partnership (the
“Investor”), Regency GP LP, a Delaware limited partnership (the “General Partner”), and Regency GP,
LLC, a Delaware limited liability (the “Company”), you have been designated as an Investor Observer
by the Investor. Under the terms of the Investor Rights Agreement, prior to attending any Board
meetings in your capacity as an Investor Observer or receiving any materials in connection
therewith, you must enter into this agreement for the benefit of the Company. Capitalized terms
used but not defined herein are used with the meanings given to them in the Investor Rights
Agreement.

     In connection with your designation as an Investor Observer, your observation of meetings of
the Board and the receipt of materials given to members of the Board in connection therewith, you
hereby agree as follows:

     1. Investor Rights Agreement. You hereby affirm the terms of the Investor Rights
Agreement and agree that your observation of meetings of the Board and the receipt of materials
given to Directors in connection therewith is subject in all respects to the terms of the Investor
Rights Agreement. You agree that there are no rights or privileges whatsoever arising from your
status as an Investor Observer and agree to abide with the limitations on observation rights
contained herein and in the Investor Rights Agreement. You further certify that you are not a
plaintiff in any litigation involving the Company or its affiliates and that by your signature
hereto, you agree to automatically resign as an Investor Observer if you become a plaintiff in any
such litigation.

     2. Confidentiality. You hereby agree to hold in confidence and trust and not to use
or disclose any Confidential Information provided to or learned by you in connection with or
pursuant to your service as an Investor Observer, to the same extent that Confidential Information
is required to be held in confidence by the Investor pursuant to Section 2.4 of the
Investor Rights Agreement, whether such Confidential Information is provided to or learned by you
at a meeting of the Board, through material delivered or distributed to you, or otherwise.

Exhibit A

 

     3. Counterparts. This Agreement may be executed by facsimile signatures by any party
and such signature shall be deemed binding for all purposes hereof, without delivery of an
original signature being thereafter required. This Agreement may be executed in one or more
counterparts, each of which, when executed, shall be deemed to be an original and all of which
together shall constitute one and the same document.

     4. Governing Law. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of Delaware, without giving effect to the conflicts of law
provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

	 	 	 	 	 
	 	Sincerely,

REGENCY GP, LLC

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

ACKNOWLEDGED AND AGREED:

 

	 	 	 

	 

	[

	]	 
	 
	 	 

Exhibit A

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