Document:

exv10w3

 

EXHIBIT 10.3

Execution Copy

UNITHOLDER RIGHTS AND RESTRICTIONS AGREEMENT

by and among

ENERGY TRANSFER EQUITY, L.P.,

and

ENTERPRISE GP HOLDINGS, L.P.,

RAY C. DAVIS

and

NATURAL GAS PARTNERS VI, L.P.

 

 

UNITHOLDER RIGHTS AND RESTRICTIONS AGREEMENT

     THIS UNITHOLDER RIGHTS AND RESTRICTIONS AGREEMENT (this “Agreement”) is made and
entered into as of May 7, 2007, by and among ENERGY TRANSFER EQUITY, L.P., a Delaware limited
partnership (“ETE”), ENTERPRISE GP HOLDINGS, L.P. (“Investor”), RAY C. DAVIS
(“Davis”) and NATURAL GAS PARTNERS VI, L.P. (“NGP”).

     This Agreement is made in connection with the sale of 38,976,090 common units of ETE (the
“Purchased Units”) to the Investor pursuant to the Securities Purchase Agreement, dated as
of May 7, 2007, by and among Davis, Avatar Holdings LLC, Avatar Investments LP, Natural Gas
Partners VI, L.P., Lon Kile, MHT Properties, Ltd., P. Brian Smith Holdings LP, LE GP, LLC and the
Investor (the “Purchase Agreement”). ETE has agreed to enter into this Agreement pursuant
to Section 5.5 of the Purchase Agreement.

     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 (in the case of the Investors, severally and not jointly) as
follows:

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. The terms set forth below are used herein as so defined:

     “Agreement” has the meaning specified therefor in the introductory paragraph.

     “Affiliate” means any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified. The term “control” (including the terms “controlling,” “controlled by,” and “under
common control with”) means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

     “Antitrust Investigation” means any investigation, inquiry, review, proceeding, action
or threatened action taken by a Governmental Authority in enforcing the Antitrust Laws solely in
connection with: (i) the acquisition by Investor of the Purchased Units and membership interests
in the general partner of ETE pursuant to the Purchase Agreement, (ii) the resulting ownership by
Investor of the Purchased Units or membership units in the general partner of ETE as of the date of
this Agreement or (iii) the possession of rights and powers of Investor provided by this Agreement
or otherwise related to the ownership of the membership units in the general partner of ETE or the
Purchased Units; provided, in the case of clauses (ii) and (iii), solely with respect to
the assets, business and operations of ETE, the Investor and their Affiliates as of the date of
this Agreement and not with respect to any subsequent acquisitions by, or changes to the assets,
business or operations of, ETE, Investor or their respective Affiliates.

     “Antitrust Laws” shall include the Sherman Act, as amended, the Clayton Act, as
amended, the HSR Act, the Federal Trade Commission Act, as amended, and all other federal,

1

 

state and foreign statutes, rules, regulations, orders, decrees, administrative and judicial
doctrines and other laws that are designed or intended to prohibit, restrict or regulate actions
having the purpose or effect of monopolization or restraint of trade or lessening of competition.

     “Commercially Sensitive Information” has the meaning specified therefor in the
Statement of Policies Relating to Relationship with Enterprise Holdings GP, L.P., a copy of which
is attached to this Agreement as Exhibit A and incorporated herein for all purposes, as
such Statement may be amended from time to time.

     “Commission” means the Securities and Exchange Commission.

     “Common Units” means the common units of ETE.

     “Confidential Information” has the meaning specified therefor in Section 4.03 of this
Agreement.

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

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

     “Disposition” has the meaning specified therefor in Section 3.01 of this Agreement.

     “Divestiture Losses” has the meaning specified therefor in Section 6.01(d) of this
Agreement

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

     “ETE” has the meaning specified therefor in the introductory paragraph.

     “ETP” means Energy Transfer Partners, L.P., a Delaware limited partnership.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Final Restricted Period” means the twelve-month period beginning on the date
immediately after the end of the Initial Restricted Period.

     “GAAP” has the meaning specified therefor in Section 4.01(a) of this Agreement.

     “Governmental Authority” means any federal, national, supranational, state,
provincial, local or other government, governmental, regulatory or administrative authority, agency
or commission or any court, tribunal or judicial or arbitral body, including but not limited to all
U.S., state and foreign governmental agencies responsible for enforcing the Antitrust Laws.

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

2

 

     “Included Registrable Securities” has the meaning specified therefor in Section
2.02(a) of this Agreement.

     “Initial Restricted Period” means the period from the date of this Agreement through
the date six months after the date of this Agreement.

     “Investor” has the meaning specified therefor in the introductory paragraph.

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

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

     “Notice” has the meaning specified therefor in Section 3.04 of this Agreement.

     “NYSE” has the meaning specified therefor in Section 3.02 of this Agreement.

     “Person” means an individual, corporation, association, trust, limited liability
company, limited partnership, limited liability partnership, partnership, incorporated
organization, or other entity or group (as defined in Section 13(d)(3) of the Exchange Act).

     “Piggyback Registration” has the meaning specified therefor in Section 2.02(a) of this
Agreement.

     “Purchase Agreement” has the meaning specified therefor in the Recital of this
Agreement.

     “Purchased Units” has the meaning specified therefor in the Recital of this Agreement.

     “Registrable Securities” means (i) the Purchased Units and (ii) any Common Units
issued as (or issuable upon the conversion or exercise of any warrant, right or other security
which is issued as) a dividend or other distribution with respect to, or in exchange for or in
replacement of, the Purchased Units, in each case until such time as such securities described in
clause (i) or (ii) above 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.

     “Restricted Periods” means the Initial Restricted Period and the Final Restricted
Period.

     “Securities Act” means the Securities Act of 1933, as amended.

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

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

3

 

     “Standstill Period” means the period from the date of this Agreement through the date
three years from the date of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Demand
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 similar provision then in force under the Securities
Act); (c) such Registrable Security is held by ETE or one of its Subsidiaries; or (d) (i) such
Registrable Security is eligible for resale under Rule 144(k) under the Securities Act and (ii) the
Holder of such Registrable Security is able to utilize Rule 144(k) under the Securities Act.

ARTICLE II.

REGISTRATION RIGHTS

     Section 2.01 Demand Registration.

     (a) Demand Registration. At any time following the last day of the Initial
Restricted Period (“Initial Restriction Expiration Date”), any Holder or Holders
holding an aggregate of not less than 50% of the then outstanding Registrable Securities
(“Initial Holders”) may request, by written notice (a “Demand”) to ETE,
specifying the number of Registrable Securities desired to be sold (which shall not be less
than 10% of the Registrable Securities, and which may not exceed the limits set forth in
Section 3.01 during the Final Restricted Period), that ETE prepare and file a registration
statement under the Securities Act (“Demand Registration Statement”) to permit the
public resale of Registrable Securities either (a) in an Underwritten Offering or (b) from
time to time as permitted by Rule 415 under the Securities Act (either, a “Demand
Registration”). Promptly upon receipt of a Demand, ETE shall give written notice
thereof to all other Holders. All such Holders who notify ETE in writing within fifteen
(15) days after the date of such notice that they desire to include Registrable Securities
in the Demand Registration Statement shall be permitted to do so. ETE shall use its
commercially reasonable efforts to cause a Demand Registration Statement to become effective
no later than 180 days after the date of the Demand. A Demand 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 ETE; provided, however, that if a
prospectus or a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from the Demand Registration Statement and the Managing Underwriter
selected by the Selling Holders at any time shall notify ETE in writing that, in the sole
judgment of such Managing Underwriter, inclusion of detailed information to be used in such
prospectus or prospectus supplement is of material importance to the success of the
Underwritten Offering of such Registrable Securities, ETE shall use its commercially

4

 

reasonable efforts to include such information in such a prospectus or prospectus
supplement. In the case of a shelf registration, ETE will cause a Demand 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 Demand Registration Statement
have been distributed in the manner set forth and as contemplated in the Demand Registration
Statement or there are no longer any Registrable Securities outstanding covered by such
Demand Registration Statement (the “Effectiveness Period”). The Demand 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
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.
As soon as practicable following the date a Demand Registration Statement becomes effective,
but in any event within two Business Days after such date, ETE shall provide the Selling
Holders with written notice thereof. ETE is obligated to effect only three (3) Demand
Registrations pursuant to this Section 2.01.

     (b) Delay Rights. Notwithstanding anything to the contrary contained herein,
ETE may, upon written notice to any Selling Holder whose Registrable Securities are included
in a Demand Registration Statement, suspend such Selling Holder’s use of any prospectus
which is a part of the Demand Registration Statement (in which event the Selling Holder
shall discontinue sales of the Registrable Securities pursuant to the Demand Registration
Statement other than the closing of sales already committed for prior to receipt of such
notice to suspend) if ETE (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 Demand 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 ETE, would materially adversely affect ETE; provided,
however, that in no event shall the Selling Holders be suspended for a period
exceeding an aggregate of 90 days (exclusive of days covered by any lock-up agreement
executed by a Holder in connection with any Underwritten Offering by ETE or the Holders) in
any 365-day period. Upon disclosure of such information or the termination of the condition
described above, ETE shall provide prompt notice to the Selling Holders whose Registrable
Securities are included in the Demand Registration Statement, and shall promptly 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 Piggyback Registration.

     (a) Participation. If ETE at any time proposes to file a registration
statement or a prospectus supplement to an effective registration statement with respect to
an Underwritten Offering of Common Units for its own account or to register any Common Units
for its own account for sale to the public in an Underwritten Offering other than (x) a
registration relating solely to employee benefit plans, (y) a registration relating solely
to a Rule 145 transaction, or (z) a registration on any registration form which does not
permit secondary sales or does not include substantially the same information as

5

 

would be required to be included in a registration statement covering the sale of
Registrable Securities, then, as soon as practicable following the engagement of counsel to
ETE to prepare the documents to be used in connection with an Underwritten Offering, ETE
shall give notice of such proposed Underwritten Offering to the Holders and such notice
shall offer the Holders the opportunity to include in such Underwritten Offering such number
of Registrable Securities as each such Holder may request in writing (a “Piggyback
Registration”); provided, however, that ETE shall not be required to
offer such opportunity to Holders if ETE has been advised by a Managing Underwriter that the
inclusion of Registrable Securities for sale for the benefit of the Holders will have a
material adverse effect on the price, timing or distribution of the Common Units. Subject to
the preceding sentence and subject to Section 2.02(b), ETE shall include in such
Underwritten Offering all such Registrable Securities (“Included Registrable
Securities”) with respect to which ETE has received requests within ten days after ETE’s
notice has been delivered in accordance with Section 7.01. If no request for inclusion from
a Holder is received within the specified time, such Holder shall have no further right to
participate in such Piggyback Registration. If, at any time after giving written notice of
its intention to undertake an Underwritten Offering and prior to the closing of such
Underwritten Offering, ETE shall determine for any reason not to undertake or to delay such
Underwritten Offering, ETE may, at its election, give written notice of such determination
to the Selling Holders and, (x) in the case of a determination not to undertake such
Underwritten Offering, shall be relieved of its obligation to sell any Included Registrable
Securities in connection with such terminated Underwritten Offering, and (y) in the case of
a determination to delay such Underwritten Offering, shall be permitted to delay offering
any Included Registrable Securities for the same period as the delay in the Underwritten
Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s request
for inclusion of such Selling Holder’s Registrable Securities in such offering by giving
written notice to ETE of such withdrawal up to and including the time of pricing of such
offering. Notwithstanding the foregoing, any Holder may deliver written notice to ETE
requesting that such Holder not receive notice from ETE of any proposed Underwritten
Offering; provided, that such Holder may later revoke any such notice.

     (b) Priority of Piggyback Registration. If the Managing Underwriter or
Underwriters of any proposed Underwritten Offering of Common Units included in a Piggyback
Registration advises ETE that the total amount of Common Units which the Selling Holders and
any other Persons intend to include in such offering exceeds the number which can be sold in
such offering without being likely to have a material adverse effect on the price, timing or
distribution of the Common Units offered or the market for the Common Units, then the Common
Units to be included in such Underwritten Offering shall include the number of Registrable
Securities that such Managing Underwriter or Underwriters advises ETE can be sold without
having such material adverse effect, with such number to be allocated pro rata among the
Selling Holders who have requested participation in the Piggyback Registration (based, for
each such Selling Holder, on the percentage derived by dividing (A) the number of
Registrable Securities proposed to be sold by such Selling Holder in such offering; by (B)
the aggregate number of Common Units proposed to be sold by the Selling Holders and any
other Persons with registration rights that are pari passu with the rights
of the Holders

6

 

participating in the Piggyback Registration to be included in such offering). If there
are to be any Included Registrable Securities in the proposed Underwritten Offering of
Common Units, then the Selling Holders representing a majority of the Registrable Securities
to be sold in the Underwritten Offering shall be entitled to approve one Managing
Underwriter with respect to the Registrable Securities to be sold in that Underwritten
Offering.

     (c) Termination of Piggyback Registration Rights. The Piggyback Registration
rights granted pursuant to this Section 2.02 shall terminate two years following the
Restriction Expiration Date.

     Section 2.03 Underwritten Offering. In the event that a Selling Holder elects to
dispose of Registrable Securities under a Demand Registration Statement pursuant to an Underwritten
Offering, ETE shall enter into an underwriting agreement in customary form with the Managing
Underwriter, 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 a 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, a
majority of the Selling Holders shall be entitled to select the Managing Underwriter with respect
to the Registrable Securities to be sold in that Underwritten Offering. In connection with an
Underwritten Offering under Section 2.01 or 2.02 hereof, each Selling Holder and ETE shall be
obligated to enter into an underwriting agreement which contains such representations, covenants,
indemnities and other rights and obligations as are customary in underwriting agreements for firm
commitment offerings of securities. 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 completes and executes all questionnaires, powers of attorney,
indemnities, lock-up agreements 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, ETE 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 ETE or the underwriters 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 ETE and a Managing Underwriter;
provided, however, that such withdrawal must be made at or prior to the time of
pricing of such offering to be effective. No such withdrawal or abandonment shall affect ETE’s
obligation to pay Registration Expenses.

     Section 2.04 Registration Procedures. In connection with its obligations contained in
Sections 2.01 and 2.02, ETE will, as expeditiously as possible:

     (a) prepare and file with the Commission such amendments and supplements to the Demand
Registration Statement and the prospectus used in connection therewith as may be necessary
to keep a Demand Registration Statement that is a shelf registration

7

 

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 Demand Registration Statement;

     (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable
before filing any registration statement contemplated by this Agreement or any supplement or
amendment thereto, upon request, copies of reasonably complete 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 such registration statement or supplement or amendment
thereto, and (ii) such number of copies of such 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 registration statement;

     (c) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by any registration statement contemplated by this Agreement
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 ETE will not 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 or taxation 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 any registration statement contemplated by this Agreement or any prospectus or
prospectus supplement to be used in connection therewith, or any amendment or supplement
thereto, and, with respect to such registration statement contemplated by this Agreement,
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 any registration statement contemplated by this Agreement
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 any registration statement contemplated by this Agreement, 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 any

8

 

registration statement contemplated by this Agreement, or the initiation of any
proceedings for that purpose; or (iii) the receipt by ETE 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, ETE 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;

     (g) furnish within 30 days of a written request, which may be made from time to time,
whether in the case of an Underwritten Offering or otherwise in connection with the sale or
resale of the Registrable Securities, (i) an opinion of counsel for ETE, 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, if any, 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, if any, in each
case, signed by the independent public accountants who have certified ETE’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 commercially reasonable 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 ETE personnel as is reasonable and customary
to enable such parties to establish a due diligence defense under the Securities Act;
provided that ETE need not disclose any information to any

9

 

such representative unless and until such representative has entered into a
confidentiality agreement with ETE;

     (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 ETE are then listed;

     (k) use its commercially reasonable 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 ETE 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;

     (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; and

     (n) notify the Selling Holders in advance of ETE’s or any affiliate’s intent to conduct
any repurchase of Common Units, whether in the open market, through privately negotiated
transactions, by tender offer or otherwise.

Each Selling Holder, upon receipt of notice from ETE of the happening of any event of the kind
described in subsection (e) of this Section 2.04, 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 2.04 or until it is advised in
writing by ETE 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 ETE, such Selling Holder will, or will request the managing underwriter or underwriters, if any,
to deliver to ETE (at ETE’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 2.05 Cooperation by Holders. ETE shall have no obligation to include in any
Demand Registration units of a Holder or in a Piggyback Registration units of a Selling Holder who
has failed to timely furnish all such information which, in the opinion of counsel to ETE, is
reasonably required in order for the registration statement or any prospectus or prospectus
supplement thereto, as applicable, to comply with the Securities Act.

     Section 2.06 Expenses.

     (a) Certain Definitions. “Registration Expenses” means all expenses
incident to ETE’s performance under or compliance with this Agreement to effect the
registration of Registrable Securities in a Demand Registration or a Piggyback Registration,
and the disposition of such securities, including, without limitation, all registration,
filing, securities exchange listing and NYSE fees, all registration, filing, qualification
and other

10

 

fees and expenses of complying with securities or blue sky laws, fees of the National
Association of Securities Dealers, Inc., 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 ETE, 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, ETE shall not be
responsible for legal fees incurred by Holders in connection with the exercise of such
Holders’ rights hereunder. In addition, ETE 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. ETE will pay all Registration Expenses in connection with any
Demand Registration Statement filed pursuant to Section 2.01(a) of this Agreement and ETE
will pay all Registration Expenses in connection with a Piggyback Registration, whether or
not the Demand Registration Statement becomes effective or any sale is made pursuant to a
Demand Registration or Piggyback Registration. Each Selling Holder shall pay all Selling
Expenses in connection with any sale of its Registrable Securities hereunder.

     Section 2.07 Indemnification.

     (a) By ETE. In the event of a registration of any Registrable Securities under
the Securities Act pursuant to this Agreement, ETE 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 of Registrable Securities thereunder
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, director, officer,
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 any registration statement
contemplated by this Agreement, 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 ETE 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 any registration statement contemplated by this Agreement or any prospectus contained
therein or any amendment or supplement thereof,

11

 

as applicable. 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,
underwriter 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 not
jointly to indemnify and hold harmless ETE, its directors and officers, and each Person, if
any, who controls ETE within the meaning of the Securities Act or of the Exchange Act to the
same extent as the foregoing indemnity from ETE 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 any registration statement contemplated by
this Agreement 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 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. In any action brought against any indemnified party, it shall notify the
indemnifying party of the commencement thereof. 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 such separate counsel 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 indemnifying party shall settle any action brought against an indemnified
party with respect to which such indemnified party is entitled to indemnification hereunder
without the consent of the indemnified party, unless the settlement thereof imposes no
liability or obligation on, and includes a complete and unconditional release from all
liability of, the indemnified party.

12

 

     (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 ETE or
any Selling Holder 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 ETE on the one hand and such Selling
Holder on the other, in such proportion as is appropriate to reflect the relative fault of
ETE 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 ETE on
the one hand and each Selling Holder on the other 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 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, ETE agrees to use its commercially reasonable
efforts to:

     (a) Make and keep public information regarding ETE 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 ETE 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

13

 

ETE, 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 ETE
to register Registrable Securities granted to the Investor by ETE under this Article II may be
transferred or assigned by the Investor to one or more transferee(s) or assignee(s) of such
Registrable Securities that is an Affiliate of Investor, provided that (a) ETE 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, (b) each such transferee agrees to be bound by the terms of this
Agreement, and (c) such transferee would own Registrable Securities at the time of such transfer
that have a market value of not less than $25 million.

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

     Section 2.11 Limitation on Subsequent Registration Rights. From and after the date
hereof until the termination of the Investor’s piggyback registration rights pursuant to Section
2.02(c) hereof, ETE shall not, without the prior written consent of the Holders of a majority of
the then outstanding Registrable Securities, enter into any agreement with any current or future
holder of any securities of ETE that would allow such current or future holder to require ETE to
include securities in any registration statement filed by ETE on a basis that would give such
holder priority in any way over the piggyback rights granted to the Investor under Section 2.02
hereof.

ARTICLE III.

TRANSFER RESTRICTIONS

     Section 3.01 Restricted Period. Except as permitted under Section 3.04, Investor,
Davis and NGP each agrees that (i) during the Initial Restricted Period, with respect to 100
percent of the Common Units owned by such party or its Affiliates set forth on Schedule
3.01 hereto, and (ii) during the Final Restricted Period, with respect to 50 percent of the
Common Units owned by such party or its Affiliates set forth on Schedule 3.01 hereto, it
will not (a) loan, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase or
otherwise transfer or dispose of, directly or indirectly, such Common Units or any security
convertible into or exchangeable for such Common Units, or (b) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of such Common Units, whether any such transaction described in clause (a) or (b) above
is settled by delivery of such Common Units or other securities, in cash or otherwise (any
disposition or arrangement described in clause (a) or (b) above being referred to herein as a
“Disposition”), or publicly disclose any intent to make any Disposition, without, in each
case, the prior written consent of ETE.

14

 

     Section 3.02 Orderly Market. Investor acknowledges that the maintenance of an orderly
market in the Common Units is in the best interests of ETE, Investor and other holders of Common
Units. Investor agrees, unless (a) it shall have the prior written consent of ETE or (b) such
offer(s) and sale(s) are pursuant to an Underwritten Offering, Investor shall not sell, or offer to
sell, after the Initial Restriction Expiration Date, Common Units on the New York Stock Exchange
(“NYSE”) or any other public market upon which the Common Units are then traded, on any
trading day in an amount in excess of 10% of the average daily trading volume of the Common Units
on the NYSE, or such other market, for the previous ten trading days, or such other amount as may
be mutually agreed upon in writing by ETE and Investor.

     Section 3.03 “Lock-up” Agreement. Investor agrees that so long as Investor and its
Affiliates own 5% or more of the outstanding Common Units, Investor and any Affiliate of Investor
owning Common Units will, upon request of a Managing Underwriter in connection with an Underwritten
Offering, enter into a lock-up agreement with such Managing Underwriter, the terms of which shall
provide that Investor and such Affiliates will not, for a period of no more than 90 days following
the closing of such Underwritten Offering: (a) loan, offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any
Common Units or any securities convertible into or exchangeable for Common Units, or (b) enter into
any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of Common Units, whether any such transaction described in clause (a) or
(b) above is settled by delivery of Common Units or other securities, in cash or otherwise. The
foregoing provision of this Section 3.03 shall only be applicable to Investor and its Affiliates if
(i) all other holders of more than 5% of the outstanding Common Units that are Affiliates of ETE
and (ii) all executive officers and directors of ETE also agree to a similar lock-up agreement.

     Section 3.04 Permitted Dispositions. Notwithstanding the provisions of Section 3.01,
during the Restricted Periods, Investor, Davis and NGP may (a) sell, transfer or otherwise dispose
of such Common Units in a private transaction, without the prior written consent of ETE, to its
respective Affiliate that agrees in writing with ETE to be bound by the terms of this Agreement,
(b) pledge the Purchased Units as security for bona fide loans, letters of credit, interest rate or
other hedging transactions and related fees, costs, indemnities and other obligations from one or
more third parties who are not Affiliates of such party, (c) sell all or a portion of such Common
Units, as a result of any divestiture ordered by, or agreed to with, a Governmental Authority. In
addition, Article III shall also not restrict or affect the manner of sale or other disposition of
any Common Units in connection with any foreclosure or other disposition after default of a lender
or other counterparty in connection with the pledge of such securities for bona fide loans, letters
of credit, interest rate or other hedging transactions and related fees, costs, indemnities and
other obligations from one or more third parties who are not Affiliates of such party and shall not
apply to any permitted transferee who does not assume the rights and obligations of Investor, Davis
or NGP in accordance with Section 7.12 of this Agreement.

     Section 3.05 Legends. Investor, Davis and NGP acknowledge that the certificates
representing the Common Units subject to Section 3.01 of this Agreement may bear, in addition to a
customary legend relating to restrictions under the Securities Act, the restrictive legend set

15

 

forth below evidencing the terms of this Agreement and that stop transfer instructions may be
imposed with respect to the certificates representing the applicable Common Units during the
Restricted Periods. EPE shall remove the following restrictive legend after the end of the
applicable Restricted Periods upon exchange of the existing certificates.

     The Common Units evidenced by this certificate are subject to restrictions on
transfer set forth in Section 3.01 of the Unitholder Rights and Restrictions
Agreement dated as of May ___, 2007. A copy of this agreement will be furnished by
the Partnership upon request.

ARTICLE IV.

INFORMATION RIGHTS AND CONFIDENTIALITY

     Section 4.01 Information Rights. Investor shall be entitled to obtain, upon request,
any of the following information from ETE, for the sole purpose of monitoring Investor’s investment
in the Purchased Units:

     (a) as soon as practicable, but in any event within 120 days after the end of each
fiscal year of ETE, a consolidated audited financial statement of ETE consisting of a
balance sheet, a statement of operations, a statement of partners’ capital and a statement
of cash flows, together with appropriate notes to such financial statements, prepared in
accordance with general accepted accounting principals (“GAAP”);

     (b) as soon as practicable, but in any event within 60 days after the end of each
fiscal quarter of ETE, an unaudited consolidated financial statement of ETE, consisting of a
balance sheet, statement of operations, statement of partners’ capital and a statement of
cash flows, together with appropriate notes to such financial statements, prepared in
accordance with GAAP; and

     (c) such other information relating to the financial condition, business or corporate
affairs of ETE as Investor may reasonably request; provided, however, ETE
shall not be obligated to provide any information pursuant to this clause (c) that (i) ETE
reasonably determines in good faith to be Commercially Sensitive Information or (ii) would
adversely affect the attorney-client privilege between ETE and its counsel.

     Section 4.02 Reporting Company Exception. The rights granted to Investor to obtain
information described in clauses (a) and (b) of Section 4.01 shall not be applicable so long as ETE
is subject to the reporting requirements of Section 15(d) of the Exchange Act or the Common Units
are registered under Section 12 of the Exchange Act.

     Section 4.03 Confidentiality. Investor agrees that it will keep confidential and will
not disclose, divulge or use for any purpose, other than to monitor its investment in ETE, any
Confidential Information (as defined below) obtained from ETE pursuant to the terms of this
Agreement; provided, however, Investor may disclose Confidential Information: (i)
to its attorneys, accountants and other professional advisors who have a need to know such
information in connection with monitoring of Investor’s investment in ETE (subject to each such
authorized recipient of such confidential information agreeing to keep such information
confidential and provided that Investors shall be liable for any breach of confidentiality
by any

16

 

such recipient); (ii) in its periodic reports required under the Exchange Act or any
registration statement or prospectus under the Securities Act to the extent, and only to the
extent: (A) Investor is advised by legal counsel that such disclosure is required to comply with
the Securities Act or the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, (B) Investor takes reasonable steps to minimize the extent of any such required
disclosure, and (C) Investor advises ETE of any such proposed disclosure prior to its filing and
consults with ETE as to the nature and extent of such disclosure; or (iii) as may otherwise be
required by law, provided that Investor takes reasonable steps to minimize the extent of
any such required disclosure. “Confidential Information” shall mean any confidential
information regarding ETE excluding information that (a) is known or becomes known to the public in
general (other than as a result of a breach of this Section 4.02 by Investor), (b) is or has been
independently developed or conceived by the Investor without the use of ETE’s confidential
information, or (c) is or has been made known or disclosed to the Investor by a third party without
a breach of any obligation of confidentiality such third party may have to ETE.

     Section 4.04 Trading. Investor acknowledges that the receipt of material non-public
information pursuant to this Agreement may restrict the ability of Investor to trade in securities
of ETE, ETP or their respective Affiliates.

     Section 4.05 Investor’s SEC Reporting. Nothing in this Agreement shall obligate ETE,
ETP or any of their respective subsidiaries to (a) make any representations or warranties, or
otherwise provide any indemnification, in connection with any report filed by Investor or any of
its Affiliates (other than ETE) pursuant to the Exchange Act or any registration statement or
prospectus of Investor or any of its Affiliates (other than of ETE) under the Securities Act, (b)
deliver any “comfort letter” to any underwriter, placement agent or purchaser in connection with
any offering by Investor or any of its Affiliates (other than ETE) of securities issued by them, or
(c) otherwise subject ETE, ETP or any of their subsidiaries to liability for any report filed by
Investor or any of its Affiliates (other than ETE) pursuant to the Exchange Act or any registration
statement or prospectus of the Investor or any of its Affiliates (other than ETE) under the
Securities Act.

ARTICLE V.

STANDSTILL

     Investor agrees that during the Standstill Period, it shall not, and agrees to cause its
Affiliates not to, directly or indirectly without the prior written consent of the Board of
Directors of LE GP, LLC: (a) in any manner acquire, agree to acquire or make a proposal to acquire
any Common Units or other securities or other property of ETE, ETP or any of their respective
Affiliates if such acquisition would cause Investor and its Affiliates to collectively own Common
Units in excess of 49.9% of the then outstanding Common Units, or (b) form or join or in any way
participate in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect
to any voting securities of ETE, ETP or any of their respective Affiliates, other than a “group”
consisting of one or more of the members of the general partner of ETE or ETP or Investor and its
Affiliates.

17

 

ARTICLE VI.

GOVERNMENTAL APPROVAL

     Section 6.01 Consents and Approvals.

     (a) Investor and ETE shall each use all commercially reasonable efforts to obtain all
necessary consents, waivers, authorizations and approvals of all Governmental Authorities
and of all other Persons required in connection with the execution and delivery by such
party of this Agreement and the Purchase Agreement and the consummation of the transactions
contemplated by this Agreement and the Purchase Agreement, and the Investor and ETE will
cooperate fully with each other in promptly seeking to obtain all such authorizations,
consents, orders and approvals, to give such notices and to make such filings.

     (b) Investor and ETE shall, in connection with their efforts to obtain all requisite
material approvals and authorizations for the transactions contemplated by this Agreement
and the Purchase Agreement, use commercially reasonable best efforts to (i) supply promptly
any information and documentary materials requested by, and cooperate with, any Antitrust
Investigation, (ii) promptly inform the other party of any communication received from, or
given to, any Governmental Authority and of any material communication received or given in
connection with any Antitrust Investigation, and (iii) permit the other party to review any
communication given by it to, and consult with other parties in advance of, any meeting or
conference with, any Governmental Authority and give the other parties the opportunity to
attend and participate in such meetings and conferences.

     (c) Notwithstanding anything to the contrary in Section 6.01(a) or elsewhere in this
Agreement, nothing in this Agreement shall obligate ETE, ETP or any of their respective
subsidiaries to divest, accept any condition, take any action or agree to any limitation
with respect to any of its business, operations or assets, each, a “Divestiture
Action”, in order to resolve any Antitrust Investigation or otherwise.

     (d) In the event any Governmental Authority requires ETE, ETP, or any of their
respective subsidiaries to take any Divestiture Action and ETE, ETP or any of their
respective subsidiaries takes any such actions to resolve any Antitrust Investigation,
Investor hereby agrees to indemnify and hold harmless ETE, ETP and their respective
subsidiaries against any and all fines, penalties, expenses, damages and losses incurred by
ETE, ETP or any of their respective subsidiaries (including all consequential damages, but
excluding any punitive or exemplary damages) in connection with such Divestiture Action
(“Divestiture Losses”). Projected cash flows obtained in connection with the
acquisition of alternative assets directly or indirectly with the proceeds of any such
Divestiture Action compared to the projected cash flows of the assets divested may be
considered in connection with the determination of the amount of damages and losses. In
addition, the strategic value of any asset subject to a Divestiture Action by ETE, ETP or
any of their respective subsidiaries, including any consequential diminution in value of any
other assets of ETE, ETP or any of their respective subsidiaries, may be considered in
determining the amount of damages or loss incurred by ETE, ETP and their respective

18

 

subsidiaries in connection with any such Divestiture Action. ETE shall not be entitled
to multiple recovery for any Divestiture Losses, including any indirect Losses to ETE for
which EPE has compensated ETP or its subsidiaries directly.

ARTICLE VII.

MISCELLANEOUS

     Section 7.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, courier service or personal delivery:

     (a) if to the Investor, 1100 Louisiana, 10th Floor, Houston, Texas 77002, Attn:
President;

     (b) if to ETE, at 2828 Woodside Street, Dallas, Texas 75204, or

     (c) such other address as a party hereto may specify in writing, notice of which is
given in accordance with the provisions of this Section 3.01.

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.

     Section 7.02 Successor and Assignees. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assignees of each of the parties, including
subsequent Holders of Registrable Securities to the extent permitted herein.

     Section 7.03 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 ETE or any successor or assignee of ETE (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, unit splits,
recapitalizations and the like occurring after the date of this Agreement.

     Section 7.04 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 party, 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 party from pursuing any other
rights and remedies at law or in equity which such party may have.

     Section 7.05 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.

19

 

     Section 7.06 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 7.07 Governing Law. The laws of the State of New York shall govern this
Agreement without regard to principles of conflict of laws.

     Section 7.08 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 7.09 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 ETE set forth herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

     Section 7.10 Amendment. This Agreement may be amended only by means of a written
amendment signed by ETE and the Holders of a majority of the then outstanding Registrable
Securities.

     Section 7.11 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.

     Section 7.12 Successors and Assigns; Third-Party Beneficiaries. This Agreement shall
inure to the benefit of, and be binding upon, the parties hereto and their respective successors
and permitted assigns. Except as expressly permitted herein, no party shall be entitled to assign
its rights or benefits hereunder to any other person without the consent of each of the other
parties hereto. Nothing in this Agreement shall confer upon any person not a party to this
Agreement, or its legal representatives, any rights or remedies of any nature or kind whatsoever
under or by reason of this Agreement. The rights and remedies expressly provided to ETE for Losses
that may be incurred by ETE and the subsidiaries of ETE and ETP pursuant to Section 6.01 hereof,
ETE shall be enforceable solely by ETE any not by any other party.

[The remainder of this page is intentionally left blank.]

20

 

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

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

	 	By:	 	/s/ John W. McReynolds 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: John W. McReynolds	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	INVESTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE GP HOLDINGS, L.P.	 	 
	 	 	By: EPE Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael A. Creel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael A. Creel, CEO	 	 
	 
	 	 	 	 	 	 
	 	 	DAVIS:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Ray C. Davis	 	 
	 	 	 	 	 
	 	 	Ray C. Davis	 	 
	 
	 	 	 	 	 	 
	 	 	NGP:	 	 
	 
	 	 	 	 	 	 
	 	 	NATURAL GAS PARTNERS VI, L.P.	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	G.F.W. Energy VI, L.P.,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	By:  	GFW VI, L.L.C.,	 	 
	 	 	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	By:  	/s/ Kenneth Hersh	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	An Authorized Member	 	 

 

 

Schedule 3.01

(Common Units beneficially owned, excluding Common Units owned directly by the Company)

	 	 	 
	Investor:

	 	 38,976,090 Common Units
	Davis:

	 	 18,184,531 Common Units
	NGP:

	 	 15,631,777 Common Units

 

 

EXHIBIT A

STATEMENT OF POLICIES RELATING TO RELATIONSHIP

WITH ENTERPRISE HOLDINGS GP, L.P.

     This Statement of Policies Related to Relationship with Enterprise GP Holdings, L.P. (the
“Statement”) specifies the policies and procedures that have been adopted by Energy
Transfer Equity, L.P. (“ETE”) and Energy Transfer Partners, L.P. (“ETP”), as
authorized and approved by their respective general partners, to address potential conflicts among,
and protect the confidential information of, ETE, ETP and their subsidiaries (collectively, the
“Energy Transfer Entities”), on the one hand, and Enterprise GP Holdings L.P. and its
affiliates (collectively, the “Enterprise Entities”), on the other hand.

Corporate Governance

     Independent Directors. Each of LE GP, LLC, in its capacity as the general partner of
ETE (“ETE GP”) or Energy Transfer Partners, L.L.C., in its capacity as the general partner
of Energy Transfer Partners GP, L.P., the general partner of ETP (“ETP GP”), will have at
least three Independent Directors on its board of directors.

     No Overlapping Directors. No director or employee of ETE GP or ETP GP will serve on
the board of directors of EPE Holdings, LLC, the general partner of Enterprise GP Holdings L.P., or
any successor thereto (“EPE GP”), and no director or employee of any of the Enterprise
Entities will serve on the board of directors of ETE GP or ETP GP.

Separate Employees

     None of the Energy Transfer Entities will employ any person who is, or was within the prior
six months, an employee of any of the Enterprise Entities.

Transactions Between Enterprise Entities and Energy Transfer Entities

     Any material transaction between any of the Enterprise Entities, on the one hand, and the
Energy Transfer Entities, on the other hand, will require the prior approval of the Conflicts
Committee of the boards of directors of each of ETE GP and ETP GP.

Screening of Commercially Sensitive Information

     The Energy Transfer Entities will take reasonable precautions to ensure that the Energy
Transfer Entities do not provide information to any of the Enterprise Entities that the Screening
Officers of the Energy Transfer Entities reasonably determine in good faith to be Commercially
Sensitive Information.

 

 

Definitions

     For purposes of this statement, capitalized terms used but not defined above shall have the
following meanings:

     “Commercial Information” shall mean information about Commercial Development Activities or
other competitively sensitive information of any Energy Transfer Entities related to the business,
operations or strategies of any of the Energy Transfer Entities or any of their competitors.
Commercial Information includes information regarding prices, costs, margins, volumes and
contractual terms for any particular customer, any method, tool or computer program used to
determine prices for any asset or service; all plans or strategies used or adopted to negotiate,
target or identify a particular customer or group of customers for any asset or service or expand
existing service offerings or offer a new service; all information regarding plans and prospective
budgets to expand or build a new facility; all information regarding a proposal to buy an existing
facility, and information related to the capacity and capacity utilization of any facility.

     “Commercial Development Activities” shall mean Confidential Information with respect to (i)
proposed changes to any Potentially Overlapping Assets, (ii) the plans and strategies dealing with
the business of the Potentially Overlapping Assets and (iii) commercial development activities
related to 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, other midstream natural gas assets or
facilities and any wholesale or retail propane facility or business.

     “Commercially Sensitive Information” means Confidential Information with respect to (i)
Commercial Information related to Potentially Overlapping Assets and (ii) Commercial Development
Activities.

     “Confidential Information” shall mean any confidential information regarding the Energy
Transfer Entities excluding information that (a) is known or becomes known to the public in general
(other than as a result of a breach by any person of its confidentiality agreements with the Energy
Transfer Entities), (b) is or has been independently developed or conceived by any person without
the use of the Energy Transfer Entities’ confidential information, or (c) is or has been made known
or disclosed to any person by a third party without a breach of any obligation of confidentiality
such third party may have to the Energy Transfer Entities.

     “Independent Director” shall mean an individual director who meets the independence,
qualification and experience requirements established by the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Securities and Exchange Commission thereunder, and by
The New York Stock Exchange applied to

 

 

such director as if he or she were a director of any of the Enterprise Entities and either ETE GP
(if such director is a director of ETE GP) or ETP GP (if such director is a director of ETP GP).

     “Potential Overlapping Assets” shall mean such assets of the Energy Transfer Entities as
determined by ETE or ETP, from time to time, to be significantly competitive with assets or
operations of the Enterprise Entities.

     “Screening Officer” shall mean any of the Chief Executive Officer, President, Chief Financial
Officer, General Counsel or Chief Compliance Officer of either ETE or ETP, or their respective
designees.exv10w4

 

Execution Copy

EXHIBIT 10.4

      

SECURITIES PURCHASE AGREEMENT

By and Between

ENTERPRISE GP HOLDINGS L.P.,

and

DFI GP HOLDINGS, L.P.

and

DUNCAN FAMILY INTERESTS, INC.,

as the Sellers

May 7, 2007

      

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II
PURCHASE AND SALE
	 	 	8	 
	 
	 	 	 	 
	Section 2.1 Closing
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III
REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	 
	 	 	 	 
	Section 3.1 Representations and Warranties of the Sellers
	 	 	9	 
	Section 3.2 Representations and Warranties of EPE
	 	 	12	 
	Section 3.3 Representations and Warranties Concerning TEPPCO GP and TEPPCO MLP
	 	 	15	 
	 
	 	 	 	 
	ARTICLE IV
COVENANTS AND AGREEMENTS
	 	 	27	 
	 
	 	 	 	 
	Section 4.1 Commercially Reasonable Efforts; Further Assurances
	 	 	27	 
	Section 4.2 No Public Announcement
	 	 	27	 
	Section 4.3 Expenses
	 	 	27	 
	Section 4.4 Tax Matters
	 	 	27	 
	Section 4.5 Unitholder Approval of Amendment to EPE Partnership Agreement
	 	 	27	 
	 
	 	 	 	 
	ARTICLE V
REMEDIES FOR DEFAULT
	 	 	27	 
	 
	 	 	 	 
	Section 5.1 Indemnity Regarding Section 3.1 and Section 3.3 Representations and Covenants
	 	 	27	 
	Section 5.2 Indemnity Regarding Section 3.2 Representations and Covenants
	 	 	28	 
	Section 5.3 Survival of Representations
	 	 	28	 
	Section 5.4 Calculation of Damages
	 	 	29	 
	Section 5.5 Enforcement of this Agreement
	 	 	29	 
	Section 5.6 Exclusive Remedy
	 	 	29	 
	Section 5.7 Limitation on Damages
	 	 	29	 
	Section 5.8 No Waiver Relating to Claims for Fraud/Willful Misconduct
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VI
MISCELLANEOUS
	 	 	30	 
	 
	 	 	 	 
	Section 6.1 Notices
	 	 	30	 
	Section 6.2 Governing Law; Jurisdiction; Waiver of Jury Trial
	 	 	31	 
	Section 6.3 Entire Agreement; Amendments and Waivers
	 	 	31	 
	Section 6.4 Binding Effect and Assignment
	 	 	31	 
	Section 6.5 Severability
	 	 	32	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 6.6 Execution
	 	 	32	 
	Section 6.7 Disclosure Letters
	 	 	32	 

Exhibits

Exhibit A          Form of Amendment to EPE Partnership Agreement

ii

 

SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of May 7, 2007 (the “Execution
Date”), is entered into by and among Enterprise GP Holdings L.P., a Delaware limited partnership
(“EPE”), DFI GP Holdings, L.P., a Delaware limited partnership (“DFIGP”), and Duncan Family
Interests, Inc. (“DFI” and together with DFIGP, the “Sellers”).

W I T N E S S E T H:

     WHEREAS, DFIGP owns 100% of the membership interests in Texas Eastern Products Pipeline
Company, LLC, a Delaware limited liability company (“TEPPCO GP”), and TEPPCO GP is the sole general
partner of, and owns 100% of the 2% general partner interest in, TEPPCO Partners, L.P., a Delaware
limited partnership (“TEPPCO MLP”); and

     WHEREAS, DFI owns in excess of 4,400,000 Common Units representing limited partner interests
of TEPPCO MLP (“Common Units”); and

     WHEREAS, subject to the terms and conditions set forth herein, the Sellers desires to sell to
EPE, and EPE desires to purchase from the Sellers, 100% of the membership interests in TEPPCO GP
(the “Membership Interest”) and 4,400,000 Common Units of TEPPCO MLP (the “Offered Units”), in
exchange for an aggregate of 14,173,304 Class B Units of EPE (the “Class B Units”) and 16,000,000
Class C Units of EPE (the “Class C Units”), in each case having the rights and privileges
desginated in the Amendment No. 1 to the First Amended and Restated Agreement of Limited
Partnership of EPE, the form of which is set forth as Exhibit A to this Agreement.

     NOW, THEREFORE, in consideration of the premises and the respective representations,
warranties, covenants, agreements and conditions contained herein, the parties hereto agree as
follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. In this Agreement, unless the context otherwise requires, the
following terms shall have the following meanings respectively:

     “2006 10-K” has the meaning set forth in Section 3.3(g)(ii).

     “affiliate” has the meaning set forth in Rule 405 of the rules and regulations under the
Securities Act, unless otherwise expressly stated herein.

     “Agreement” has the meaning set forth in the Preamble.

     “Amendment to EPE Partnership Agreement” means the Amendment No. 1 to the First Amended and
Restated Agreement of Limited Partnership of EPE set forth as Exhibit A to this Agreement.

 

 

     “Business Day” means any day on which commercial banks are generally open for business in New
York, New York or Houston, Texas other than a Saturday, a Sunday or a day observed as a holiday in
New York, New York or Houston, Texas under the Laws of the State of New York or the State of Texas
or the federal Laws of the United States of America.

     “Closing” has the meaning set forth in Section 2.1(a).

     “Class B Units” has the meaning set forth in the Recitals.

     “Class C Units” has the meaning set forth in the Recitals.

     “Closing Date” has the meaning set forth in Section 2.1(a).

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Common Units” has the meaning set forth in the Recitals.

     “Damages” means claims, liabilities, damages, penalties, judgments, assessments, losses,
costs, expenses, including reasonable attorneys’ fees and expenses, incurred by the party seeking
indemnification under this Agreement.

     “DFIGP” has the meaning set forth in the Preamble.

     “DFI Indemnified Parties” has the meaning set forth in Section 5.2.

     “Encumbrances” means pledges, restrictions on transfer, rights or options to purchase, rights
of first refusal, proxies and voting or other agreements, liens, claims, charges, mortgages,
security interests or other legal or equitable encumbrances, limitations or restrictions of any
nature whatsoever.

     “Enterprise GP” means Enterprise Products GP, LLC, a Delaware limited liability company.

     “Enterprise Material Adverse Effect” means any change, effect, event or occurrence that
materially and adversely affects the ability of Enterprise to consummate the transactions
contemplated by this Agreement.

     “Enterprise MLP” means Enterprise Products Partners L.P., a Delaware limited partnership.

     “Enterprise Partnership Group Entities” means EPE, EPE Holdings, Enterprise MLP, Enterprise GP
and the subsidiaries of Enterprise MLP.

     “Environmental Laws” means any and all applicable laws, statutes, regulations, rules, orders,
ordinances, and legally enforceable directives of and agreements between a person that is subject
to the applicable representation and any Governmental Entity and rules of common law pertaining to
protection of human health (to the extent arising from exposure to Hazardous Substances) or the
environment (including any generation, use, storage, treatment, or Release of

2

 

Hazardous Substances into the environment) including the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901 et seq., the Clean Air Act, 42 U.S.C. Section 7401 et seq.,
the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et seq., the Oil Pollution Act of
1990, 33 U.S.C. Section 2701 et seq., the Toxic Substances Control Act, 15 U.S.C. Section 2601 et
seq., the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq., the Occupational Safety and
Health Act, 29 U.S.C. Section 651 et seq., the Atomic Energy Act, 42 U.S.C. Section 2014 et seq.,
the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136 et seq., and the
Federal Hazardous Materials Transportation Law, 49 U.S.C. Section 5101 et seq., as each has been
amended from time to time, and all other environmental conservation and protection laws, in each
case as in effect prior to or as of the Closing Date.

     “EPCO” means EPCO, Inc., a Texas corporation.

     “EPE” has the meaning set forth in the Preamble.

     “EPE Holdings” means EPE Holdings, LLC, a Delaware limited liability company and the sole
general partner of EPE.

     “EPE Indemnified Parties” has the meaning set forth in Section 5.1.

     “EPE Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of EPE, dated as of August 29, 2005.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Execution Date” has the meaning set forth in the Preamble.

     “GAAP” has the meaning set forth in Section 1.2.

     “governing documents” means, with respect to any person, the certificate or articles of
incorporation, by-laws, articles of organization, limited liability company agreement, partnership
agreement, formation agreement, joint venture agreement, shareholder agreement or declaration or
other similar governing documents of such person.

     “Governmental Entity” means any (a) multinational, federal, provincial, territorial, state,
regional, municipal, local or other government, governmental or public department, central bank,
court, tribunal, arbitral body, commission, board, bureau or agency, domestic or foreign, (b)
subdivision, agent, commission, board, or authority of any of the foregoing, or (c) quasi
governmental or private body exercising any regulatory, expropriation or taxing authority under, or
for the account of, any of the foregoing.

     “Hazardous Substances” means any (a) chemical, product, substance, waste, material, pollutant,
or contaminant that is defined or listed as hazardous or toxic or that is otherwise regulated under
any Environmental Law; (b) friable asbestos containing materials, polychlorinated biphenyls,
naturally occurring radioactive materials or radon; and (c) any oil or

3

 

gas exploration or production waste or any petroleum, petroleum hydrocarbons, petroleum
products or crude oil and any components, fractions, or derivatives thereof.

     “holders” means, when used with reference to the TEPPCO Limited Partner Units, the holders of
such units shown from time to time in the registers maintained by or on behalf of TEPPCO MLP.

     “Individual Threshold” has the meaning set forth in Section 5.1.

     “Investments” has the meaning set forth in Section 2.1(d).

     “IRS” means the Internal Revenue Service.

     “knowledge,” “known” or words of similar import mean (a) with respect to the Sellers, the
actual knowledge of the officers and directors of the Sellers and TEPPCO GP, and (b) with respect
to EPE, the actual knowledge of the officers and directors of EPE Holdings.

     “Laws” means all statutes, regulations, statutory rules, orders, judgments, decrees and terms
and conditions of any grant of approval, permission, authority, permit or license of any court,
Governmental Entity, statutory body (including the NYSE) or self-regulatory authority, but does not
include Environmental Laws.

     “LP Units” has the meaning set forth in the TEPPCO Partnership Agreement.

     “Materiality Requirement” means any requirement in a representation or warranty that a
condition, event or state of fact be “material,” correct or true in “all material respects,” have a
“Material Adverse Effect” or be or not be “reasonably expected to have a Material Adverse Effect”
(or other words or phrases of similar effect or impact) in order for such condition, event or state
of facts to cause such representation or warranty to be inaccurate.

     “Membership Interest” has the meaning set forth in the Recitals.

     “Notice” has the meaning set forth in Section 6.1.

     “NYSE” means the New York Stock Exchange.

     “Offered Units” has the meaning set forth in the Recitals.

     “Open TEPPCO Position” has the meaning set forth in Section 3.3(w).

     “Partially Owned Entity” means, with respect to a specified person, any other person that is
not a subsidiary of such specified person but in which such specified person, directly or
indirectly, owns 10% or more of the equity interests thereof (whether voting or non-voting and
including beneficial interests).

     “Permitted Encumbrances” means any liens, title defects, preferential rights or other
encumbrances upon any of the relevant person’s property, assets or revenues, whether now owned or
hereafter acquired, that are (i) carriers’, warehousemens’, mechanics’, materialmen’s,

4

 

repairmen’s or other like liens arising in the ordinary course of business which are not
overdue for a period of more than 60 days or which are being contested in good faith by appropriate
proceeding, (ii) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements, (iii) for Taxes not yet due or which are
being contested in good faith by appropriate proceedings (provided that adequate reserves with
respect thereto are maintained on the books of such person or its subsidiaries, as the case may be,
in conformity with GAAP), (iv) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business, (v) easements,
rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of
business which, in the aggregate, are not substantial in amount and which do not in any case
materially detract from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business by such person and its subsidiaries and (vi) created pursuant to
construction, operating and maintenance agreements, space lease agreements and other similar
agreements, in each case having ordinary and customary terms and entered into in the ordinary
course of business by such person and its subsidiaries.

     “person” includes any individual, firm, partnership, joint venture, venture capital fund,
limited liability company, association, trust, estate, group, body corporate, corporation,
unincorporated association or organization, Governmental Entity, syndicate or other entity, whether
or not having legal status.

     “Purchase Price” has the meaning set forth in Section 2.1(b).

     “Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting,
discarding, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

     “Representative” means, with respect to any person, such person’s officers, directors or
employees, or any investment banker, financial advisor, attorney, accountant or other
representative retained by such person.

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

     “Securities Act” means the Securities Act of 1933, as amended.

     “Sellers” has the meaning set forth in the Preamble.

     “subsidiary” means with respect to a specified person, any other person (a) that is a
subsidiary as defined in Rule 405 of the Rules and Regulations under the Securities Act of such
specified person or (b) of which such specified person or another of its subsidiaries owns
beneficially 50% or more of the equity interests.

     “Tax” or “Taxes” means any taxes, assessments, fees and other governmental charges imposed by
any Governmental Entity, including without limitation income, profits, gross receipts, net
proceeds, alternative or add-on minimum, ad valorem, value added, turnover, sales, use, property,
personal property (tangible and intangible), environmental, stamp, leasing, lease,

5

 

user, excise, duty, franchise, capital stock, transfer, registration, license, withholding,
social security (or similar), unemployment, disability, payroll, employment, fuel, excess profits,
occupational, premium, windfall profit, severance, estimated, or other charge of any kind
whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

     “Tax Return” means any return, declaration, report, claim for refund, or information return or
statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

     “TEPPCO Disclosure Letter” means the disclosure letter for this Agreement dated the Execution
Date.

     “TEPPCO Easements” has the meaning set forth in Section 3.3(p)(iii).

     “TEPPCO Environmental Permits” has the meaning set forth in Section 3.3(j).

     “TEPPCO GP” has the meaning set forth in the Recitals.

     “TEPPCO GP Financial Statements” has the meaning set forth in Section 3.3(g)(iv).

     “TEPPCO GP Balance Sheet” means the audited condensed consolidated balance sheet of TEPPCO GP
as of December 31, 2006 filed with the SEC on Form 8-K on March 20, 2007.

     “TEPPCO GP LLC Agreement” means that certain Limited Liability Company Agreement of Texas
Eastern Products Pipeline Company, LLC prior to giving effect to the transactions contemplated by
this Agreement.

     “TEPPCO Intellectual Property Rights” has the meaning set forth in Section 3.3(o)(i).

     “TEPPCO Limited Partner Units” means the LP Units of TEPPCO MLP issued pursuant to the TEPPCO
Partnership Agreement.

     “TEPPCO Material Adverse Effect” means any change, effect, event or occurrence with respect to
the condition (financial or otherwise), properties, assets, earnings, liabilities, obligations
(whether absolute, accrued, conditional or otherwise), businesses, operations or results of
operations of the TEPPCO Partnership Group Entities (taken as a whole), that is, or could
reasonably be expected to be, material and adverse to the TEPPCO Partnership Group Entities (taken
as a whole), material and adverse to TEPPCO GP or that materially and adversely affects the ability
of either of the Sellers or TEPPCO GP to consummate the transactions contemplated hereby; provided,
however, that a TEPPCO Material Adverse Effect shall not include any change, effect, event or
occurrence with respect to the condition (financial or otherwise), properties, assets, earnings,
financial condition, liabilities, obligations (whether absolute, accrued, conditional or
otherwise), businesses, operations or results of operations of any TEPPCO Partnership Group Entity
(or any TEPPCO Partially Owned Entity) directly or indirectly arising out of or attributable to (a)
changes in the general state of the industries in which the TEPPCO Partnership Group Entities and
the TEPPCO Partially Owned Entities operate to the extent that such changes would have the same
general effect on all other companies operating in such industries, or (b) changes in general
economic conditions (including

6

 

changes in commodity prices) that would have the same general effect on companies engaged in
the same lines of business as those conducted by the TEPPCO Partnership Group Entities and the
TEPPCO Partially Owned Entities.

     “TEPPCO MLP” has the meaning set forth in the Recitals.

     “TEPPCO MLP Balance Sheet” means the consolidated balance sheet of TEPPCO MLP as of December
31, 2006 filed with the SEC in the 2006 10-K.

     “TEPPCO MLP Partially Owned Entities” means the Partially Owned Entities held, directly or
indirectly, by TEPPCO MLP.

     “TEPPCO Operating Partnerships” means TE Products Pipeline Company, Limited Partnership, a
Delaware limited partnership, TCTM, L.P., a Delaware limited partnership, and TEPPCO Midstream
Companies, L.P., a Delaware limited partnership, collectively.

     “TEPPCO Parties” means TEPPCO MLP and TEPPCO GP.

     “TEPPCO Partnership Agreement” means that certain Fourth Amended and Restated Agreement of
Limited Partnership of TEPPCO MLP, dated as of December 8, 2006.

     “TEPPCO Partnership Group Entities” means TEPPCO GP, TEPPCO MLP and the subsidiaries of TEPPCO
MLP.

     “TEPPCO Permits” has the meaning set forth in Section 3.3(j)(ii).

     “TEPPCO Pipeline Assets” means the pipelines, equipment and other tangible personal property
used in connection with the TEPPCO Partnership Group Entities’ pipeline operations.

     “TEPPCO Plans” means all employee benefit plans (as defined in Section 3(3) of ERISA, whether
or not subject to ERISA), all employment, change of control and severance agreements (or consulting
agreements with natural persons) and any employee compensation plan, including any pension,
retirement, profit sharing, stock or unit option, stock or unit purchase, restricted stock or unit,
bonus, incentive compensation, health, life, disability or fringe benefit plan, contract or
arrangement sponsored or maintained by, participated in or contributed to by or required to be
contributed to by, any of the TEPPCO Partnership Group Entities with respect to any current or
former employees or independent contractors of any of the TEPPCO Partnership Group Entities.

     “TEPPCO SEC Reports” has the meaning set forth in Section 3.3(g)(i).

     “Texas Courts” has the meaning set forth in Section 6.2.

     “Units” means the Units of EPE as defined in the EPE Partnership Agreement.

     Section 1.2 Rules of Construction. The division of this Agreement into articles, sections and other portions and the insertion of
headings are for convenience of reference only and shall not affect the construction or
interpretation hereof. Unless otherwise indicated, all

7

 

references to an “Article” or “Section”
followed by a number or a letter refer to the specified Article or Section of this Agreement. The
terms “this Agreement,” “hereof,” “herein” and “hereunder” and similar expressions refer to this
Agreement (including the Disclosure Letter hereto) and not to any particular Article, Section or
other portion hereof. Unless otherwise specifically indicated or the context otherwise requires,
(a) all references to “dollars” or “$” mean United States dollars, (b) words importing the singular
shall include the plural and vice versa and words importing any gender shall include all genders,
(c) “include,” “includes” and “including” shall be deemed to be followed by the words “without
limitation,” and (d) all words used as accounting terms shall have the meanings assigned to them
under United States generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”). In the event that any date on which any action is required to be
taken hereunder by any of the parties hereto is not a Business Day, such action shall be required
to be taken on the next succeeding day that is a Business Day. Reference to any party hereto is
also a reference to such party’s permitted successors and assigns. The Exhibits attached to this
Agreement are hereby incorporated by reference into this Agreement and form a part hereof. Unless
otherwise indicated, all references to an “Exhibit” followed by a number or a letter refer to the
specified Exhibit to this Agreement. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party hereto
by virtue of the authorship of any of the provisions of this Agreement.

ARTICLE II

PURCHASE AND SALE

     Section 2.1 Closing.

          (a) Closing Date. The closing (the “Closing”) of the transactions contemplated under
this Section 2.1 shall be held at the offices of Andrews Kurth LLP at 600 Travis, Suite
4200, Houston, Texas 77002 on the Execution Date. The Execution Date is also referred to herein as
the “Closing Date.”

          (b) Purchase of Membership Interest and Offered Units; Issuance of Class B and Class C
Units. At the Closing, subject to the terms and conditions of this Agreement:

               (i) EPE Holdings, as the general partner and attorney-in-fact on behalf of the limited
partners of EPE, shall execute and deliver the Amendment to EPE Partnership Agreement, authorizing
the issuance of the Class B Units and the Class C Units.

               (ii) DFIGP shall convey to EPE the Membership Interest (such conveyance or assignment to be in
a form mutually acceptable to DFIGP and EPE), free and clear of all Encumbrances, except to the
extent created under federal and state securities laws and
the Delaware Limited Liability Company Act, in consideration for the issuance by EPE to DFIGP
of an aggregate of 11,819,722 Class B Units and 13,343,082 Class C Units;

               (iii) DFI shall convey to EPE the Offered Units (such conveyance or assignment to be in a form
mutually acceptable to DFI and EPE), free and clear of all

8

 

Encumbrances, except to the extent
created under federal and state securities laws and the DRULPA in consideration for the issuance by
EPE to DFI of an aggregate of 2,353,582 Class B Units and 2,656,918 Class C Units (such Class B and
Class C Units issued to DFIGP and DFI collectively, the “Purchase Price”); and.

               (iv) EPE shall issue to DFIGP and DFI certificates evidencing the Class B Units and the
Class
C Units.

               (v) Concurrently with such conveyance, DFIGP shall cease to have any interest in TEPPCO GP
with respect to the Membership Interest sold hereunder, including the cessation of any rights to
receive allocations of income, gain, loss, deduction or credit from, the capital account balance of
or distributions from TEPPCO GP with respect to the Membership Interest, and DFI shall cease to
have any interest in the Offered Units sold hereunder.

          (c) FIRPTA Certificate. At the Closing, DFIGP shall provide EPE with a FIRPTA
certificate certifying that neither TEPPCO GP nor TEPPCO MLP is a “foreign person” within the
meaning of Treasury Regulation 1.1445 2(b).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Section 3.1 Representations and Warranties of the Sellers. Each of the Sellers, severally
and not jointly, represents and warrants to EPE that:

          (a) Formation and Standing. Such Seller has been duly formed and is validly existing
under the Laws of the State of Delaware with full legal or corporate or limited partnership power
and authority to own, lease and operate its properties and to conduct its businesses as currently
owned and conducted except where, individually or in the aggregate, the failure to be so organized,
formed or existing or to have such power or authority could not reasonably be expected to have a
material adverse effect on the ability of such Seller to close the transactions contemplated under
this Agreement. Such Seller is duly qualified to do business in each jurisdiction in which the
nature of the business conducted by it or the ownership or leasing of its properties requires it to
so qualify, except where, individually or in the aggregate, the failure to be so qualified could
not reasonably be expected to have a material adverse effect on the ability of such Seller to close
the transactions contemplated under this Agreement.

          (b) Authority and No Conflicts.

               (i) Such Seller has all requisite corporate or limited partnership power and authority to
enter into this Agreement and to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement by such Seller and
the consummation by such Seller of the transactions contemplated
by this Agreement have been duly and validly authorized by all necessary corporate or limited
partnership action on the part of such Seller and its members or partners and no other corporate or
partnership proceedings on the part of such Seller or its members or partners, as applicable, are
necessary to authorize this Agreement or to consummate the transactions contemplated hereby.

9

 

               (ii) This Agreement has been duly executed and delivered by such Seller and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency and other applicable Laws affecting creditors’
rights generally, and by general principles of equity.

               (iii) Neither the execution and delivery of this Agreement by such Seller nor the performance
by such Seller of its obligations hereunder and the completion of the transactions contemplated
hereby will:

                    (A) conflict with, or violate any provision of, the governing
documents of such Seller;

                    (B) other than obtaining or making, as applicable, any consents,
approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or made, could not,
individually or in the aggregate, reasonably be expected to have a TEPPCO Material Adverse Effect,
violate or breach any Laws applicable to such Seller; or

                    (C) other than obtaining or making, as applicable, any consents,
approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or made, could not,
individually or in the aggregate, reasonably be expected to have a TEPPCO Material Adverse Effect,
violate or conflict with or result in the breach of, or constitute a default (or an event that with
the giving of notice, the passage of time, or both would constitute a default) under, or entitle
any party (with the giving of notice, the passage of time or both) to terminate, accelerate, modify
or call any obligations or rights under any credit agreement, note, bond, mortgage, indenture, deed
of trust, contract, agreement, lease, license, franchise, permit, concession, easement or other
instrument to which such Seller is a party, or by or to which such Seller or any of its properties
are bound or subject.

          (c) No Consents. No consent, approval, authorization or order of, or notice to, any
court or person is required for the consummation by such Seller of the transactions contemplated by
this Agreement except those as have already been obtained or given or those, the failure of which
to obtain or give, could not reasonably be expected to have a TEPPCO Material Adverse Effect.

          (d) Membership Interest and General Partner Interest; Offered Units.

               (i) DFIGP is the sole owner of the Membership Interest. The Membership Interest has been duly
authorized, validly issued, fully paid and non-assessable (except as set forth in the TEPPCO GP LLC
Agreement and to the extent such non-assessability may be affected by the Delaware Limited
Liability Company Act). Except to the extent created under the federal and state securities Laws
and the Delaware Limited Liability Company Act, the Membership Interest is held of record by DFIGP,
free and clear of Encumbrances, except for
Encumbrances the would not affect the transactions contemplated by this Agreement and the
ability of DFIGP to perform its obligations hereunder. TEPPCO GP owns or holds no assets or
interests other than the general partner interest in TEPPCO MLP and has not since the date of its
formation engaged in any business activities whatsoever other than acting as the general partner

10

 

of
TEPPCO MLP, other than activities that have not violated, and would not violate, the TEPPCO
Partnership Agreement in any material respect.

               (ii) General Partner Interest. TEPPCO GP is the sole general partner of TEPPCO MLP.
TEPPCO GP is the sole record owner of the general partner interest in TEPPCO MLP, and such general
partner interest has been duly authorized and validly issued in accordance with the TEPPCO
Partnership Agreement. Except for any Encumbrances arising under the governing documents of any
TEPPCO Party, applicable securities Laws or this Agreement, TEPPCO GP owns such general partner
interest free and clear of any Encumbrances.

          (e) No Defaults. Such Seller is not in default under or violation of, and there has
been no event, condition or occurrence which, after notice or lapse of time or both, would
constitute such a default or violation of, or permit the termination of, any term, condition or
provision of (i) its governing documents, (ii) any credit agreement, note, bond, mortgage,
indenture, contract, agreement, lease, license, franchise, permit, concession, easement or other
instrument to which such Seller is a party or by which such Seller or any of its property is bound
or subject, except, in the case of clause (ii), defaults, violations and terminations which,
individually or in the aggregate, could not reasonably be expected to have a TEPPCO Material
Adverse Effect.

          (f) Brokerage and Finder’s Fee. None of the Sellers, TEPPCO GP, TEPPCO MLP or any of
their affiliates, nor any of their respective partners, shareholders, directors, officers or
employees, has incurred or will incur on behalf of the Sellers, TEPPCO GP, TEPPCO MLP or any
affiliate thereof any brokerage, finders’ or similar fee in connection with the transactions
contemplated by this Agreement.

          (g) Independent Investigation. Such Seller has conducted its own independent
investigation, review and analysis of the business, operations, assets, liabilities, results of
operations, financial condition and prospects of the Enterprise Partnership Group Entities, which
investigation, review and analysis was done by such Seller and its affiliates and, to the extent
such Seller deemed necessary or appropriate, by its Representatives (it being understood that such
Seller is also relying on the representations, warranties, covenants and conditions in this
Agreement).

          (h) Investment Intent; Investment Experience; Restricted Securities.

     In acquiring the Class B Units or Class C Units, such Seller is not offering or selling, and
shall not offer or sell the Class B Units or Class C Units, for such Seller in connection with any
distribution of any of such Class B Units or Class C Units, and such Seller does not have a
participation and shall not participate in any such undertaking or in any underwriting of such an
undertaking except in compliance with applicable federal and state securities laws. Such Seller
acknowledges that it can bear the economic risk of its investment in the Class B Units and Class C
Units and has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Class B Units and Class C
Units. Such Seller is an “accredited investor” as such term is defined in Regulation D under the
Securities Act. Such Seller understands that neither the Class B Units nor Class C Units have been
registered pursuant to the Securities Act or any applicable state securities laws, that the

11

 

Class B
Units and Class C Units shall be characterized as “restricted securities” under federal securities
laws and that, under such laws and applicable regulations, the Class B Units and the Class C Units
cannot be sold or otherwise disposed of without registration under the Securities Act or an
exemption therefrom.

     Section 3.2 Representations and Warranties of EPE. EPE represents and warrants to each of
the Sellers that:

          (a) Organization and Standing. EPE has been duly organized and is validly existing
under the Laws of its jurisdiction of organization with full legal power and authority to own,
lease and operate its properties and to conduct its businesses as currently owned and conducted
except where, individually or in the aggregate, the failure to be so organized or existing or to
have such power or authority could not reasonably be expected to have an Enterprise Material
Adverse Effect. EPE is duly qualified to do business in each jurisdiction in which the nature of
the business conducted by it or the ownership or leasing of its properties requires it to so
qualify, except where, individually or in the aggregate, the failure to be so qualified could not
reasonably be expected to have an Enterprise Material Adverse Effect.

          (b) Authority and No Conflicts.

               (i) EPE has all requisite partnership power and authority to enter into this Agreement and to
perform its obligations hereunder and to consummate the transactions contemplated hereby and
thereby. The execution and delivery of this Agreement by EPE and the consummation of the
transactions contemplated by this Agreement have been duly and validly authorized by all necessary
corporate, partnership or limited liability company action, and no other proceedings on the part of
EPE or its general partner are necessary to authorize this Agreement or to consummate the
transactions contemplated hereby.

               (ii) This Agreement has been duly executed and delivered by EPE and constitutes its legal,
valid and binding obligation, enforceable against it in accordance with its terms, except as the
same may be limited by bankruptcy, insolvency and other applicable Laws affecting creditors’ rights
generally, and by general principles of equity.

               (iii) Neither the execution and delivery of this Agreement by EPE or of EPE Holdings of the
Amendment to EPE Partnership Agreement, nor the performance by EPE of its obligations hereunder and
the completion of the transactions contemplated hereby, will:

                    (A) conflict with, or violate any provision of, the EPE
Partnership Agreement or other
governing documents of EPE;

                    (B) other than obtaining or making, as applicable, any consents,
approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or
made, could not, individually or in the aggregate, reasonably be expected to have an
Enterprise Material Adverse Effect or violate or breach any Laws applicable to EPE;

                    (C) other than obtaining or making, as applicable, any consents,
approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or made, could not,
individually or in the aggregate, reasonably be expected to have an Enterprise

12

 

Material Adverse
Effect, violate or conflict with or result in the breach of, or constitute a default (or an event
that with the giving of notice, the passage of time, or both would constitute a default) under, or
entitle any party (with the giving of notice, the passage of time or both) to terminate,
accelerate, modify or call any obligations or rights under any credit agreement, note, bond,
mortgage, indenture, deed of trust, contract, agreement, lease, license, franchise, permit,
concession, easement or other instrument to which EPE is a party or by which EPE or its property is
bound or subject; or

                    (D) except as could not, individually or in the aggregate,
reasonably be expected to have an
Enterprise Material Adverse Effect, result in the imposition of any Encumbrance upon or require the
sale or give any person the right to acquire any of the assets of EPE or restrict, hinder, impair
or limit the ability of EPE to carry on its business as and where it is now being carried on.

          (c) No Consents. No consent, approval, authorization or order of, or notice to, any
court or person is required for the consummation of the transactions contemplated by this Agreement
except those as have been obtained or given or those, the failure of which to obtain or give, could
not reasonably be expected to have an Enterprise Material Adverse Effect.

          (d) No Defaults. EPE is not in default under or violation of, and there has been no
event, condition or occurrence which, after notice or lapse of time or both, would constitute such
a default or violation of, or permit the termination of, any term, condition or provision of (i)
its governing documents, (ii) any credit agreement, note, bond, mortgage, indenture, contract,
agreement, lease, license, franchise, permit, concession, easement or other instrument to which EPE
is a party or by which EPE or its property is bound or subject, except, in the case of clause (ii),
defaults, violations and terminations which, individually or in the aggregate, could not reasonably
be expected to have an Enterprise Material Adverse Effect.

          (e) Brokerage and Finder’s Fee. No agent, broker, finder, investment banker,
financial advisor or similar person will be entitled to any fee, commission or other compensation
in connection with this Agreement on the basis of any action or statement made by EPE or any of its
affiliates, or any of their respective partners, shareholders, directors, officers or employees
acting on behalf of EPE.

          (f) Independent Investigation. EPE has conducted its own independent investigation,
review and analysis of the business, operations, assets, liabilities, results of operations,
financial condition and prospects of the TEPPCO Partnership Group Entities, which investigation,
review and analysis was done by EPE and its affiliates and, to the extent EPE deemed necessary or
appropriate, by its Representatives (it being understood that EPE is also relying on the
representations, warranties, covenants and conditions in this Agreement).

          (g) Investment Intent; Investment Experience; Restricted Securities.

               (i) In acquiring the Membership Interest, EPE is not offering or selling, and shall not offer
or sell the Membership Interest, for EPE in connection with any distribution of any of such
Membership Interest, and EPE does not have a participation and shall not participate in any such
undertaking or in any underwriting of such an undertaking except in

13

 

compliance with applicable
federal and state securities laws. EPE acknowledges that it can bear the economic risk of its
investment in the Membership Interest and has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of an investment in the
Membership Interest. EPE is an “accredited investor” as such term is defined in Regulation D under
the Securities Act. EPE understands that the Membership Interest shall not have been registered
pursuant to the Securities Act or any applicable state securities laws, that the Membership
Interest shall be characterized as “restricted securities” under federal securities laws and that
under such laws and applicable regulations the Membership Interest cannot be sold or otherwise
disposed of without registration under the Securities Act or an exemption therefrom.

               (ii) In acquiring the Offered Units, EPE is not offering or selling, and shall not offer or
sell the Offered Units, for EPE in connection with any distribution of any of such Offered Units,
and EPE does not have a participation and shall not participate in any such undertaking or in any
underwriting of such an undertaking except in compliance with applicable federal and state
securities laws. EPE acknowledges that it can bear the economic risk of its investment in the
Offered Units and has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Offered Units. EPE is an
“accredited investor” as such term is defined in Regulation D under the Securities Act. EPE
understands that the Offered Units shall not have been registered pursuant to the Securities Act or
any applicable state securities laws, that the Offered Units shall be characterized as “restricted
securities” under federal securities laws and that under such laws and applicable regulations the
Offered Units cannot be sold or otherwise disposed of without registration under the Securities Act
or an exemption therefrom.

          (h) Amendment to EPE Partnership Agreement; Class B Units; Class C Units.

               (i) The Amendment to EPE Partnership Agreement has been duly authorized, executed and
delivered by all necessary partnership action by EPE, on behalf of EPE by EPE Holdings as its
general partner, and by the limited partners of EPE.

               (ii) The Class B Units and the limited partner interests represented thereby have been
duly
authorized and validly issued in accordance with applicable Laws and the EPE Partnership Agreement,
and when issued as consideration in accordance with this Agreement, will be fully paid (to the
extent required under the EPE Partnership Agreement) and non-assessable (except to the extent such
non-assessability may be affected by Section 17-607 of the Delaware Revised Uniform Limited
Partnership Act). The Class B Units will not be issued in violation of pre-emptive or similar
rights or any other agreement or understanding binding on EPE.

               (iii) The Class C Units and the limited partner interests represented thereby have been
duly
authorized and validly issued in accordance with applicable Laws and the EPE Partnership Agreement,
and when issued as consideration in accordance with this Agreement, will be fully paid (to the
extent required under the EPE Partnership Agreement) and non-assessable (except to the extent such
non-assessability may be affected by Section 17-607 of the Delaware Revised Uniform Limited
Partnership Act). The Class C Units will not be issued

14

 

in violation of pre-emptive or similar
rights or any other agreement or understanding binding on EPE.

               (iv) EPE has authorized and reserved a sufficient number of EPE Units issuable upon conversion
of the Class B Units and the Class C Units.

               (v) EPE has applied to list the Units issuable upon conversion of the Class B Units and
the
Class C Units on the NYSE.

     Section 3.3 Representations and Warranties Concerning TEPPCO GP and TEPPCO MLP. Each of
the Sellers, jointly and severally, hereby represents and warrants to EPE that:

          (a) Organization and Standing. Each of the TEPPCO Partnership Group Entities has been
duly organized or formed and is validly existing under the Laws of its jurisdiction of organization
or formation with full corporate or legal power and authority to own, lease and operate its
properties and to conduct its businesses as currently owned and conducted. Each of the TEPPCO
Partnership Group Entities is duly qualified to do business in each jurisdiction in which the
nature of the business conducted by it or the ownership or leasing of its properties requires it to
so qualify, except where, individually or in the aggregate, the failure to be so qualified could
not reasonably be expected to have a TEPPCO Material Adverse Effect. TEPPCO GP was formed on March
31, 2000.

          (b) No Defaults. None of the TEPPCO Partnership Group Entities is in default under or
violation of, and there has been no event, condition or occurrence which, after notice or lapse of
time or both, would constitute such a default or violation of, or permit the termination of, any
term, condition or provision of (i) their respective governing documents, (ii) any credit
agreement, note, bond, mortgage, indenture, contract, agreement, lease, license, franchise, permit,
concession, easement or other instrument to which any of the TEPPCO Partnership Group Entities is a
party or by which any of the TEPPCO Partnership Group Entities or any of their respective property
is bound or subject, except, in the case of clause (ii), defaults, violations and terminations
which, individually or in the aggregate, could not reasonably be expected to have a TEPPCO Material
Adverse Effect.

          (c) No Conflicts. Neither the execution and delivery of this Agreement by the Sellers
nor the performance by the Sellers of its obligations hereunder and the completion of the
transactions contemplated hereby will:

               (i) conflict with, or violate any provision of, the governing documents of the TEPPCO
Partnership Group Entities or the TEPPCO Partially Owned Entities;

               (ii) other than obtaining or making, as applicable, any consents, approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or made, could not,
individually or in the aggregate, reasonably be expected to have a TEPPCO Material Adverse Effect,
violate or breach any Laws applicable to the TEPPCO Partnership Group Entities or the TEPPCO
Partially Owned Entities;

15

 

               (iii) other than obtaining or making, as applicable, any consents, approvals, orders,
authorizations, registrations, declarations or filings which, if not obtained or made, could not,
individually or in the aggregate, reasonably be expected to have a TEPPCO Material Adverse Effect,
violate or conflict with or result in the breach of, or constitute a default (or an event that with
the giving of notice, the passage of time, or both would constitute a default) under, or entitle
any party (with the giving of notice, the passage of time or both) to terminate, accelerate, modify
or call any obligations or rights under any credit agreement, note, bond, mortgage, indenture, deed
of trust, contract, agreement, lease, license, franchise, permit, concession, easement or other
instrument to which any of the TEPPCO Partnership Group Entities or the TEPPCO Partially Owned
Entities is a party or by which any of the TEPPCO Partnership Group Entities or the TEPPCO
Partially Owned Entities or their respective properties are bound or subject; or

               (iv) except as could not, individually or in the aggregate, reasonably be expected to have a
TEPPCO Material Adverse Effect, result in the imposition of any Encumbrance upon or require the
sale or give any person the right to acquire any of the assets of any of the TEPPCO Partnership
Group Entities or the TEPPCO Partially Owned Entities or restrict, hinder, impair or limit the
ability of any of the TEPPCO Partnership Group Entities or the TEPPCO Partially Owned Entities to
carry on their respective businesses as and where they are now being carried on.

          (d) Capitalization of TEPPCO MLP and Subsidiaries. As of the Execution Date, TEPPCO
MLP has no limited partner interests issued and outstanding other than 89,804,829 TEPPCO Limited
Partner Units. Each of such TEPPCO Limited Partner Units and the limited partner interests
represented thereby have been duly authorized and validly issued in accordance with applicable Laws
and the TEPPCO Partnership Agreement, and are fully paid (to the extent required under the TEPPCO
Partnership Agreement) and non-assessable (except to the extent such non-assessability may be
affected by Section 17-607 of the Delaware Revised Uniform Limited Partnership Act). Such TEPPCO
Limited Partner Units were not issued in violation of pre-emptive or similar rights or any other
agreement or understanding binding on TEPPCO MLP. TEPPCO GP and TEPPCO MLP are the sole record and
beneficial owners of the general partner interest and limited partner interest, respectively, of
each of the TEPPCO Operating Partnerships. All of the outstanding equity interests of the
subsidiaries of TEPPCO MLP and the TEPPCO MLP Partially Owned Entities owned, directly or
indirectly, by TEPPCO MLP have been duly authorized and are validly issued (in accordance with
their respective governing documents), fully paid (to the extent required under the applicable
governing documents) and non-assessable (except (1) with respect to general partner interests, (2)
as set forth to the contrary in the applicable governing documents and (3) to the extent such
non-assessability may be affected by the Delaware Revised Uniform Limited Partnership Act or the
Delaware Limited Liability Company Act) and were not issued in violation of pre-emptive or similar
rights; and all such equity interests are owned, directly or indirectly, by TEPPCO MLP,
free and clear of all Encumbrances, except for applicable securities Laws, restrictions on
transfers contained in governing documents and as described in the TEPPCO SEC Reports.

          (e) Subsidiaries. Exhibit 21.1 of the 2006 10-K sets forth a list of all of the
material subsidiaries of TEPPCO MLP and all of the TEPPCO MLP Partially Owned Entities, together
with their respective jurisdictions of organization or formation, types of entity,

16

 

percentages of
equity ownership by TEPPCO MLP or its subsidiaries and record owner or owners of such equity.
TEPPCO MLP has no material subsidiaries or TEPPCO MLP Partially Owned Entities other than those set
forth in Exhibit 21.1 of the 2006 10-K.

          (f) Derivative Securities; Rights. Except as described in the 2006 10-K and the other
TEPPCO SEC Reports: (i) there are no outstanding options, warrants, subscriptions, puts, calls or
other rights, agreements, arrangements or commitments (pre-emptive, contingent or otherwise)
obligating any of the TEPPCO Partnership Group Entities to offer, issue, sell, redeem, repurchase,
otherwise acquire or transfer, pledge or Encumber any equity interest in any of the TEPPCO
Partnership Group Entities; (ii) there are no outstanding securities or obligations of any kind of
any of the TEPPCO Partnership Group Entities which are convertible into or exercisable or
exchangeable for any equity interest in any of the TEPPCO Partnership Group Entities or any other
person, and none of the TEPPCO Partnership Group Entities has any obligation of any kind to issue
any additional securities or to pay for or repurchase any securities; (iii) there are no
outstanding stock appreciation rights, phantom equity or similar rights, agreements, arrangements
or commitments based on the book value, income or any other attribute of any of the TEPPCO
Partnership Group Entities; (iv) there are no outstanding bonds, debentures or other evidence of
indebtedness of any of the TEPPCO Partnership Group Entities having the right to vote (or that are
exchangeable for or convertible or exercisable into securities having the right to vote) with the
holders of the TEPPCO Limited Partner Units on any matter; (v) except as described in the TEPPCO
Partnership Agreement, there are no unitholder agreements, proxies, voting trusts, rights to
require registration under securities Laws or other arrangements or commitments to which any of the
TEPPCO Partnership Group Entities is a party or by which any of their respective securities are
bound with respect to the voting, disposition or registration of any outstanding securities of any
of the TEPPCO Partnership Group Entities (provided that the foregoing shall not apply to any such
restriction on voting or disposition that any holder of TEPPCO Limited Partner Units (other than
affiliates of the Sellers) may have imposed upon such TEPPCO Limited Partner Units); and (vi) there
are no outstanding registration rights with respect to any TEPPCO Limited Partner Units or any
other equity securities of any of the TEPPCO Partnership Group Entities.

          (g) Reports; Financial Statements.

               (i) Since January 1, 2007, TEPPCO MLP has filed or furnished all forms, reports,
schedules,
statements and other documents required by Law to be filed or furnished with the SEC by any of the
TEPPCO Partnership Group Entities under applicable securities statutes, regulations, policies and
rules (collectively, together with all other documents filed by TEPPCO MLP with the SEC since
January 1, 2007 and prior to the Execution Date, the “TEPPCO SEC Reports”). The TEPPCO SEC Reports
at the time filed or furnished (x) did not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
contained therein not misleading in
light of the circumstances under which they were made, (y) complied in all material respects
with the requirements of applicable Laws (including the Securities Act, the Exchange Act and the
rules and regulations thereunder) and (z) complied in all material respects with the then
applicable accounting standards. The TEPPCO SEC Reports included all certificates required to be
included therein pursuant to Section 13a-14(a) and Section 13a-14(b) of the Exchange Act. Other
than (i) filings by TE Products Pipeline Company, Limited Partnership and (ii) filings in

17

 

connection with Rule 144A offerings with respect to wholly owned subsidiaries of TEPPCO MLP, no
subsidiary of TEPPCO MLP is required to file periodic reports with the SEC, either pursuant to the
requirements of the Exchange Act or by contract.

               (ii) The TEPPCO MLP Annual Report on Form 10-K for the year ended December 31, 2006 (the
“2006
10-K”) has been filed with the SEC.

               (iii) Except for this Agreement and the TEPPCO Plans described or listed in the TEPPCO SEC
Reports, the exhibit list included in the 2006 10-K sets forth a true and complete list of (x) any
contracts, agreements, documents and other instruments not yet filed by TEPPCO MLP with the SEC but
that are currently in effect and that any of the TEPPCO Partnership Group Entities will be required
to or expect to file with or furnish to the SEC as exhibits in an annual or periodic report after
the Execution Date and (y) any amendments and modifications that have not been filed by TEPPCO MLP
with the SEC but are currently in effect to all agreements, documents and other instruments that
have been filed by any of the TEPPCO Partnership Group Entities with the SEC since January 1, 2007.
All such exhibits have been made available to EPE, as requested.

               (iv) Copies of the audited financial statements for the years ended December 31, 2004,
2005
and 2006 of TEPPCO GP (the “TEPPCO GP Financial Statements”) as included in the TEPPCO SEC Reports.
The consolidated financial statements (including, in each case, any related notes thereto) of
TEPPCO MLP contained in any TEPPCO SEC Reports and in the 2006 10-K and the TEPPCO GP Financial
Statements (x) have been prepared in accordance with GAAP (subject, in the case of unaudited
financial statements, to the absence of footnote disclosures required by GAAP), (y) complied in all
material respects with the requirements of applicable securities Laws, and (z) fairly present, in
all material respects, the consolidated financial positions, results of operations, cash flows,
partners’ capital and comprehensive income and changes in accumulated other comprehensive income,
as applicable, of the applicable TEPPCO Partnership Group Entities as of the respective dates
thereof and for the respective periods covered thereby, subject, in the case of unaudited financial
statements, to normal, recurring audit adjustments none of which will be material. Except as
disclosed on the TEPPCO MLP Balance Sheet or the TEPPCO GP Balance Sheet, none of the TEPPCO
Partnership Group Entities has any indebtedness or liability, absolute or contingent, other than
(A) in the case of TEPPCO MLP, liabilities as of December 31, 2006 that are not required by GAAP to
be included in the TEPPCO MLP Balance Sheet, (B) in the case of TEPPCO GP, liabilities as of
December 31, 2006 that are not required by GAAP to be included in the TEPPCO GP Balance Sheet, (C)
liabilities incurred or accrued in the ordinary course of business consistent with past practice
since December 31, 2006 in the case of TEPPCO MLP and TEPPCO GP and that are not material,
individually or in the aggregate, or (D) liabilities disclosed in the 2006 10-K or any TEPPCO SEC
Reports filed since December 31, 2006.

          (h) Controls.

               (i) The management of TEPPCO GP has (x) implemented disclosure controls and procedures (as
defined in Rule 13a-15(e) of the Exchange Act) to ensure that material information relating to
TEPPCO MLP, including its consolidated subsidiaries, is made known to the management of TEPPCO GP
by others within those entities, and (y) disclosed,

18

 

based on its most recent evaluation, to TEPPCO
MLP’s outside auditors and the audit committee of the board of directors of TEPPCO GP (A) all
significant deficiencies and material weaknesses in the design or operation of internal controls
over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) which are reasonably
likely to adversely affect TEPPCO MLP’s ability to record, process, summarize and report financial
data and (B) any fraud, whether or not material, that involves management or other employees who
have a significant role in TEPPCO MLP’s internal controls over financial reporting. For any period
since January 1, 2007, any material change in internal control over financial reporting required to
be disclosed in any TEPPCO SEC Report has been so disclosed.

               (ii) Since January 1, 2007, (x) to the knowledge of the Sellers, none of the TEPPCO
Partnership Group Entities, or any Representative of a TEPPCO Partnership Group Entity, has
received or otherwise had or obtained knowledge of any material complaint, allegation, assertion or
claim, whether written or oral, regarding the accounting or auditing practices, procedures,
methodologies or methods of the TEPPCO Partnership Group Entities or their respective internal
accounting controls relating to periods after January 1, 2007, including any material complaint,
allegation, assertion or claim that any of the TEPPCO Partnership Group Entities has engaged in
questionable accounting or auditing practices, and (y) no attorney representing the TEPPCO
Partnership Group Entities, whether or not employed by the TEPPCO Partnership Group Entities, has
reported evidence of a material violation of securities Laws, breach of fiduciary duty or similar
violation, relating to periods after January 1, 2007, by the officers, directors, employees or
agents of any of the TEPPCO Partnership Group Entities to the board of directors of TEPPCO GP or
any committee thereof or, to the knowledge of the Sellers, to any director or officer of TEPPCO GP.

          (i) Absence of Certain Changes or Events.

               (i) Except as disclosed in any TEPPCO SEC Report, between December 31, 2006 and the
Execution
Date, the business of the TEPPCO Partnership Group Entities, taken as a whole, has been conducted
in the ordinary course consistent with past practices, except in connection with entering into this
Agreement.

               (ii) Since December 31, 2006, except as disclosed in any TEPPCO SEC Report, there have not
been any events or conditions that have had, or could reasonably be expected to have, a TEPPCO
Material Adverse Effect.

          (j) Compliance; Permits. Except as set forth, in the case of clauses (i) and (iii)
below, in the SEC Reports :

               (i) The TEPPCO Partnership Group Entities are in compliance, and at all times since January 1,
2007 have complied, with all applicable Laws, including all applicable
Laws relating to the ownership, use and operation of their properties and assets, other than
non-compliance which could not, individually or in the aggregate, reasonably be expected to have a
TEPPCO Material Adverse Effect.

19

 

               (ii) TEPPCO GP is in compliance, and at all times that it has been the general partner of the
TEPPCO MLP has complied, in all material respects with all of its obligations under the TEPPCO
Partnership Agreement.

               (iii) The TEPPCO Partnership Group Entities are in possession of all franchises, grants,
authorizations, licenses, permits, easements, variances, exemptions, consents, certificates,
approvals and orders necessary to own, lease and operate their properties and to lawfully carry on
their businesses as they are now being conducted (collectively, the “TEPPCO Permits”), except as
would not, individually or in the aggregate, reasonably be expected to have a TEPPCO Material
Adverse Effect. None of the TEPPCO Partnership Group Entities is in conflict with, or in default
or violation of any of the TEPPCO Permits, except for any such conflicts, defaults or violations
which could not, individually or in the aggregate, reasonably be expected to have a TEPPCO Material
Adverse Effect.

          (k) Litigation. Except as disclosed in the TEPPCO SEC Reports or for matters that
could not reasonably be expected to have, individually or in the aggregate, a TEPPCO Material
Adverse Effect, (i) there are no claims, actions, proceedings (public or private) investigations or
reviews pending or, to the knowledge of the Sellers, threatened against any of the TEPPCO
Partnership Group Entities by or before any Governmental Entity, and (ii) the Sellers have no
knowledge of any facts that such persons reasonably believe are likely to give rise to any such
claim, action, proceeding, investigation or review. None of the TEPPCO Partnership Group Entities,
nor any of their respective assets and properties, is subject to any outstanding judgment, order,
writ, injunction or decree that has had or could reasonably be expected to have, individually or in
the aggregate, a TEPPCO Material Adverse Effect.

          (l) Environmental Matters. Except as disclosed in the TEPPCO SEC Reports or for
matters or claims that would not reasonably be expected to have, individually or in the aggregate,
a TEPPCO Material Adverse Effect: (a) the TEPPCO Partnership Group Entities and their respective
businesses, operations, and properties have been in compliance for all applicable statutes of
limitations and are in compliance with all Environmental Laws and all permits, registrations,
licenses, approvals, exemptions, variances, and other authorizations required of the TEPPCO
Partnership Group Entities under Environmental Laws (“TEPPCO Environmental Permits”); (b) the
TEPPCO Partnership Group Entities have obtained or filed for all TEPPCO Environmental Permits
required for their respective businesses, operations, and properties as they currently exist and
all such TEPPCO Environmental Permits are currently in full force and effect; (c) the TEPPCO
Partnership Group Entities and their respective businesses, operations, and properties are not
subject to any pending or, to the knowledge of the Sellers, threatened claims, actions, suits,
investigations, inquiries or proceedings under Environmental Laws; (d) there have been no Releases
of Hazardous Substances on, under or from the properties of the TEPPCO Partnership Group Entities
that have given or may give rise to any obligations within the applicable statutes of limitations
under Environmental Laws; (e) none of the TEPPCO Partnership Group Entities has, to the knowledge
of the Sellers, received any written notice that remains unresolved asserting an alleged liability
or obligation under any Environmental Laws
against the TEPPCO Partnership Group Entities with respect to the actual or alleged Hazardous
Substance contamination of any property offsite of the properties of the TEPPCO Partnership Group
Entities; (f) to the knowledge of the Sellers, there has been no exposure of any person or property
to Hazardous Substances in connection with the TEPPCO Partnership Group Entities’

20

 

businesses,
operations, or properties that could reasonably be expected to form the basis for any tort claims
by third parties for damages or compensation; (g) the TEPPCO Partnership Group Entities have made
available to EPE all documents requested by EPE that are in the possession of the TEPPCO
Partnership Group Entities and relating to their respective businesses, operations, or properties
and relating to the TEPPCO Partnership Group Entities’ compliance with or obligations under
Environmental Laws; and (h) none of the TEPPCO Partnership Group Entities is a potentially
responsible party under Environmental Laws at any site that is on the National Priorities List, and
no real property owned by any of the TEPPCO Partnership Group Entities is on the Comprehensive
Environmental Response, Compensation and Liability Information System list.

          (m) Contracts. Except for contracts filed as exhibits to the TEPPCO SEC Reports and
TEPPCO Plans (other than with respect to clause (viii)), as of the date of this Agreement there are
no written or oral contracts, agreements, guarantees, leases and executory commitments to which any
of the TEPPCO Partnership Group Entities are a party or by which their assets are bound and which
fall within any of the following categories: (i) contracts which would have the effect of limiting
the freedom of any of the Enterprise Partnership Group Entities or the TEPPCO Partnership Group
Entities to compete in any line of business or in any geographic area, (ii) contracts relating to
any outstanding commitment for capital expenditures in excess of $15,000,000 which are not included
in AFEs for projects reflected in the TEPPCO MLP capital budget for 2007, a copy of which has been
provided to EPE; (iii) contracts with any labor union or organization, (iv) indentures, mortgages,
liens, promissory notes, loan agreements, guarantees or other arrangements relating to the
borrowing of money by any of the TEPPCO Partnership Group Entities, (v) contracts providing for the
acquisition or disposition of assets or businesses with a purchase price of $30,000,000 or more;
(vi) contracts containing provisions triggered by change of control of any of the TEPPCO
Partnership Group Entities or other similar provisions, (vii) contracts in favor of directors or
officers that provide rights to indemnification, and (viii) contracts (including those filed as
exhibits to the TEPPCO SEC Reports and TEPPCO Plans) between one or more TEPPCO Partnership Group
Entities and the Sellers or one or more affiliates of the Sellers (other than the TEPPCO
Partnership Group Entities and EPE and its subsidiaries). Except as disclosed in the SEC Reports,
(x) all such contracts (including those filed as exhibits to the TEPPCO SEC Reports) and all other
contracts that are individually material to the business or operations of the TEPPCO Partnership
Group Entities taken as a whole are valid and binding obligations of the TEPPCO Partnership Group
Entities that are parties thereto and, to the knowledge of the Sellers, the valid and binding
obligation of each other party thereto except such contracts which if not so valid and binding
could not, individually or in the aggregate, reasonably be expected to have a TEPPCO Material
Adverse Effect and (y) no TEPPCO Partnership Group Entity and, to the knowledge of the Sellers, no
other party to any such contract is in breach of or in default under or has the right to terminate
(upon notice or otherwise) any such contract except for such breaches, defaults that, and rights to
terminate which, if exercised, could not reasonably be expected to have, individually or in the
aggregate, a TEPPCO Material Adverse Effect. True and complete copies of all such contracts have
been delivered or have been made available to EPE as requested by EPE.

          (n) Restrictions on Business Activities. Except as set forth in the TEPPCO SEC
Reports, there is no agreement, judgment, injunction, order or decree binding upon any of the
TEPPCO Partnership Group Entities that has or could be reasonably expected to have the

21

 

effect of
prohibiting, restricting or materially impairing any business practice of any of the TEPPCO
Partnership Group Entities, any acquisition of property by any of the TEPPCO Partnership Group
Entities, the purchase of goods or services from any party, the hiring of any individual or groups
of individuals or the conduct of business by any of the TEPPCO Partnership Group Entities as
currently conducted.

          (o) Intellectual Property.

               (i) Except for the items shared with EPCO under the Administrative Services Agreement, the
TEPPCO Partnership Group Entities, directly or indirectly, own, license or otherwise have legally
enforceable rights to use all patents, patent rights, trademarks, trade names, service marks,
copyrights and any applications therefore, technology, know-how, computer software and applications
and tangible or intangible proprietary information or materials, that are used in the business of
the TEPPCO Partnership Group Entities as presently conducted (the “TEPPCO Intellectual Property
Rights”) and each such ownership, license, and right to use will not be adversely affected by the
transactions contemplated by this Agreement. Except for intellectual property shared with EPCO
under the Administrative Services Agreement, TEPPCO MLP owns, licenses or otherwise has legally
enforceable rights to use intellectual property of the type described in this Section
3.3(o) sufficient to operate the business of the TEPPCO Partnership Group Entities consistent
with past practices.

               (ii) In the case of TEPPCO Intellectual Property Rights owned by any of the TEPPCO Partnership
Group Entities, such TEPPCO Partnership Group Entities own such TEPPCO Intellectual Property Rights
free and clear of any Encumbrances (other than Permitted Encumbrances). One or more of the TEPPCO
Partnership Group Entities have an adequate right to the use of the TEPPCO Intellectual Property
Rights or the material covered thereby in connection with the services or products in respect of
which such TEPPCO Intellectual Property Rights are being used except where the lack of any such
right could not reasonably be expected to have, individually or in the aggregate, a TEPPCO Material
Adverse Effect. None of the TEPPCO Partnership Group Entities has received any written notice or
claim, or any other information, stating that the manufacture, sale, licensing, or use of any of
the services or products of any of the TEPPCO Partnership Group Entities as now manufactured, sold,
licensed or used or proposed for manufacture, sale, licensing or use by any of the TEPPCO
Partnership Group Entities in the ordinary course of their business as presently conducted
infringes on any copyright, patent, trade mark, service mark or trade secret of a third party
except where such infringement could not reasonably be expected to have, individually or in the
aggregate, a TEPPCO Material Adverse Effect. None of the TEPPCO Partnership Group Entities has
received any written notice or claim, or any other information, stating that the use by any of the
TEPPCO Partnership Group Entities of any trademarks, service marks, trade names, trade secrets,
copyrights, patents, technology or know-how and applications used in their business as presently
conducted infringes on any other person’s trademarks, service marks, trade names, trade secrets,
copyrights, patents, technology or know-how and applications, except where such infringement could
not reasonably be expected to have, individually or in the aggregate, a TEPPCO Material Adverse
Effect. None of the TEPPCO Partnership Group Entities has
received any written notice or claim, or any other information, challenging the ownership by
any of the TEPPCO Partnership Group Entities or the validity of any of the TEPPCO Intellectual
Property Rights except where the absence of any such ownership could not reasonably be

22

 

expected to
have, individually or in the aggregate, a TEPPCO Material Adverse Effect. All registered patents,
trademarks, service marks and copyrights held by any of the TEPPCO Partnership Group Entities are
subsisting, except to the extent any failure to be subsisting could not reasonably be expected to
have, individually or in the aggregate, a TEPPCO Material Adverse Effect. To the knowledge of the
Sellers, there is no unauthorized use, infringement or misappropriation of any of the TEPPCO
Intellectual Property Rights by any third party, including any employee or former employee of any
of the TEPPCO Partnership Group Entities. No TEPPCO Intellectual Property Right is subject to any
known outstanding decree, order, judgment, or stipulation restricting in any manner the licensing
thereof by any of the TEPPCO Partnership Group Entities.

          (p) Property.

               (i) Immediately after the Closing, TEPPCO MLP will own or have the right to use (or EPCO will
have the right to use in connection with its obligations to TEPPCO MLP under the Administrative
Services Agreement) tangible personal property sufficient to operate the businesses of the TEPPCO
Partnership Group Entities consistent with past practices.

               (ii) Except for Permitted Encumbrances, failures that could not reasonably be expected to
have, individually or in the aggregate, a TEPPCO Material Adverse Effect, the TEPPCO Partnership
Group Entities have good and indefeasible title or enforceable rights to use (or, with respect to
the TEPPCO Pipeline Assets, title to or interest in the applicable TEPPCO Pipeline Assets
sufficient to enable the TEPPCO Partnership Group Entities to conduct their businesses with respect
thereto without interference as it is currently being conducted) all their properties and assets,
whether tangible or intangible, real, personal or mixed, free and clear of all liens.

               (iii) Except for violations that could not reasonably be expected to have, individually or in
the aggregate, a TEPPCO Material Adverse Effect or set forth in the TEPPCO SEC Reports, the
businesses of the TEPPCO Partnership Group Entities have been and are being operated in a manner
which does not violate the terms of any easements, rights of way, permits, servitudes, licenses,
leasehold estates and similar rights relating to real property (collectively, “TEPPCO Easements”)
used by the TEPPCO Partnership Group Entities in such businesses. All TEPPCO Easements are valid
and enforceable in accordance with their terms, except as the enforceability thereof may be
affected by bankruptcy, insolvency or other Laws of general applicability affecting the rights of
creditors generally or principles of equity, and grant the rights purported to be granted thereby
and all rights necessary thereunder for the current operation of such businesses, except where the
failure of any such TEPPCO Easement to be valid and enforceable or to grant the rights purported to
be granted thereby or necessary thereunder would not have a TEPPCO Material Adverse Effect. There
are no gaps in the TEPPCO Easements that would impair the conduct of such businesses in a manner
that could reasonably be expected to have, individually or in the aggregate, a TEPPCO Material
Adverse Effect, and no part of the TEPPCO Pipeline Assets is located on property that is not owned
in fee by a TEPPCO Partnership Group Entity or subject to an easement in favor of a TEPPCO
Partnership Group
Entity, where the failure of such TEPPCO Pipeline Asset to be so located could reasonably be
expected to have, individually or in the aggregate, a TEPPCO Material Adverse Effect.

23

 

          (q) [Intentionally Omitted].

          (r) Labor Matters; Employees.

               (i) All individuals who work substantially full time on TEPPCO Partnership Group Entities’
matters are employees of EPCO who perform such services under the Administrative Services
Agreement, and no TEPPCO Employee is included in a unit of employees covered by a collective
bargaining agreement. None of the TEPPCO Partnership Group Entities is a party to or subject to a
collective bargaining agreement. No union certification petition has been filed (with service of
process having been made on a TEPPCO Partnership Group Entity), or to the knowledge of the Sellers,
any union organization activity threatened, that relates to TEPPCO Employees.

               (ii) Except as disclosed in the TEPPCO SEC Reports, each of the TEPPCO Partnership Group
Entities is in compliance with all laws, rules, regulations and orders relating to the employment
of labor, including all such laws, rules, regulations and orders relating to wages, hours,
collective bargaining, discrimination, civil rights, safety and health, workers’ compensation and
the collection and payment of withholding or social security taxes and similar taxes, except where
the failure to comply would not, individually or in the aggregate, reasonably be expected to have a
TEPPCO Material Adverse Effect.

          (s) Insurance. Each of the TEPPCO Partnership Group Entities and their respective
businesses and properties are, and have been continuously since January 1, 2007, insured by
reputable and financially responsible insurers in amounts and against risks and losses as are
customary for companies conducting their respective businesses. The insurance policies covering
the TEPPCO Partnership Group Entities and their respective businesses and properties are in all
material respects in full force and effect in accordance with their terms, no notice of
cancellation or termination has been received, and there is no existing default or event which,
with the giving of notice or lapse of time or both would constitute a default thereunder. There
are no outstanding claims made by any of the insured parties in excess of the deductibles and
similar amounts and retentions that are not covered under the existing policies, and, to the
knowledge of the Sellers, there has not occurred any event that might reasonably form the basis of
any claim in excess of the deductibles and similar amounts and retentions that is not covered under
such policies.

          (t) Taxes.

               (i) (A) Except as disclosed on Schedule 3.3(t), each of the TEPPCO Partnership
Group
Entities has filed when due, after giving effect to applicable extensions, all Tax Returns required
to be filed with the IRS or other applicable Governmental Entity through the date hereof; (B) all
items of income, gain, loss, deduction and credit or other items required to be included in each
such Tax Return have been so included and each such Tax Return is true, complete and correct in all
material respects; (C) each of the TEPPCO Partnership Group Entities has timely paid or has
provided an adequate accrual for all Taxes for which such entity
has liability and are or have become due (whether or not shown on any such Tax Return), and
has withheld and paid to the appropriate Governmental Entity any Tax that it is required by
Applicable Law to withhold and pay to a Governmental Entity on or before the date hereof; (D)

24

 

no
claim has been made by any Governmental Entity in a jurisdiction in which any of the TEPPCO
Partnership Group Entities does not currently file a Tax Return that it is or may be subject to Tax
by such jurisdiction; (E) none of the TEPPCO Partnership Group Entities has entered into any
agreement or arrangement with any Governmental Entity that requires any of the TEPPCO Partnership
Group Entities to take or refrain from taking any action; (F) none of the TEPPCO Partnership Group
Entities is a party to any agreement or arrangement, whether written or unwritten, providing for
the payment of Taxes, payment of Tax losses, payment of Tax indemnification payments, the sharing
or allocation of Taxes, entitlements to refunds or similar Tax matters, and no payments are due or
will become due by any of the TEPPCO Partnership Group Entities pursuant to any such agreement or
arrangement; (G) none of the TEPPCO Partnership Group Entities has elected to be treated as a
corporation for Tax purposes; (H) there is no written claim against any of the TEPPCO Partnership
Group Entities for any Taxes, and no assessment, deficiency or adjustment has been asserted,
proposed, or threatened in writing with respect to any Tax Return of or with respect to any of the
TEPPCO Partnership Group Entities; (I) there is not in force any extension of time with respect to
the due date for the filing of any Tax Return of or with respect to any of the TEPPCO Partnership
Group Entities or any waiver or agreement for any extension of time for the assessment or payment
of any Tax of or with respect to any of the TEPPCO Partnership Group Entities; (J) none of the
TEPPCO Partnership Group Entities will be required to include any amount in income for any taxable
period beginning after December 31, 2003 as a result of a change in accounting method for any
taxable period ending on or before the Closing Date or pursuant to any agreement with any
Governmental Entity with respect to any such taxable period; (K) none of the TEPPCO Partnership
Group Entities has been a member of an affiliated group filing a consolidated federal income Tax
Return or has any liability for the Taxes of any person under Treasury Regulation Section 1.1502-6
(or any similar provision of state, local, or foreign Law), as a transferee or successor, by
contract, or otherwise; (L) at least 90% of the gross income of TEPPCO MLP for each taxable year
since its formation has been from sources that constitute “qualifying income” within the meaning of
section 7704(d) of the Code, (M) none of the TEPPCO Partnership Group Entities has any material
liability for Taxes other than those incurred in the ordinary course of business and in respect of
which adequate reserves are being maintained in accordance with GAAP; (N) There are no Encumbrances
related to Taxes upon any asset of any of a TEPPCO Partnership Group Entities except for liens
arising as a matter of applicable Law relating to current Taxes not yet due; (O) TEPPCO GP is
properly disregarded as an entity separate from its owner pursuant to Treas. Reg. § 301.7701-3; and
(P) none of the TEPPCO Partnership Group Entities has entered into any transaction that is subject
to the reporting requirements of Treas. Reg. § 1.6011-4 or any predecessor thereto.

               (ii) None of the TEPPCO Partnership Group Entities has made any payment, is obligated to make
any payment, or is a party to any agreement that under certain circumstances could obligate it to
make any payment that will not be deductible under Section 280G of the Code.

               (iii) Each of the TEPPCO Partnership Group Entities treated as partnerships for federal income
tax purposes have currently effective elections under Section 754 of the Code.

25

 

          (u) Regulatory Proceedings. None of the TEPPCO Partnership Group Entities, all or
part of whose rates or services are regulated by a Governmental Entity, is a party to any
proceeding before a Governmental Entity which could reasonably be expected to result in orders
having a TEPPCO Material Adverse Effect (except to the extent that such orders would have the same
general effect on other companies operating in the industries in which the TEPPCO Partnership Group
Entities operate), nor has written notice of any such proceeding been received by any of the TEPPCO
Partnership Group Entities.

          (v) Regulation as an Investment Company. None of the TEPPCO Partnership Group
Entities is (i) an “investment company” as such terms is defined in the Investment Company Act.

          (w) Futures Trading and Fixed Price Exposure. Prior to the Execution Date and in the
ordinary course of business, TEPPCO MLP has established risk parameters to restrict the level of
risk that the TEPPCO Partnership Group Entities are authorized to take with respect to the open
position resulting from all physical commodity transactions, exchange traded futures and options
and over-the-counter derivative instruments (the “Open TEPPCO Position”) and monitors the
compliance by the TEPPCO Partnership Group Entities with such risk parameters.

          (x) Customers and Suppliers. To the knowledge of the Sellers, neither Seller nor any
of the TEPPCO Partnership Group Entities has received any written notice that any shipper or
customer will discontinue its business relationship with any of the TEPPCO Partnership Group
Entities and no such action has been threatened by any shipper or customer, which discontinuation
would reasonably be expected to have a TEPPCO Material Adverse Effect.

          (y) Books and Records.

               (i) TEPPCO GP (A) makes and keeps books, records and accounts, which, in reasonable
detail,
accurately and fairly reflect the transactions and dispositions of assets and (B) maintains systems
of internal accounting controls sufficient to provide reasonable assurances that (I) transactions
are executed in accordance with management’s general or specific authorization; (II) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and
to maintain accountability for assets; (III) access to assets is permitted only in accordance with
management’s general or specific authorization; and (IV) the recorded accountability for assets is
compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

               (ii) The minute books and other similar records of the TEPPCO Partnership Group Entities
contain true and complete copies of all actions taken at all meetings of the board of directors of
TEPPCO GP, and any committees thereof, and the limited partners of TEPPCO MLP and all written
consents executed in lieu of any such meetings. True and
complete copies of all such minute books and other similar records have been made available to
EPE.

26

 

ARTICLE IV

COVENANTS AND AGREEMENTS

     Section 4.1 Commercially Reasonable Efforts; Further Assurances. Upon the terms and
subject to the conditions hereof, each party hereto shall use its commercially reasonable efforts
to take, or cause to be taken, all appropriate action, and to do or cause to be done, all things
necessary, proper or advisable under applicable Laws to consummate and make effective the
transactions contemplated under this Agreement. Without limiting the foregoing but subject to the
other terms of this Agreement, the parties hereto agree that, from time to time, each of them will
execute and deliver, or cause to be executed and delivered, such instruments of assignment,
transfer, conveyance, endorsement, direction or authorization as may be necessary to consummate and
make effective such transactions.

     Section 4.2 No Public Announcement. No party hereto shall issue any other press release or
make any other public announcement concerning this Agreement and the transactions contemplated
hereby without consulting with the other parties hereto.

     Section 4.3 Expenses. All costs and expenses incurred in connection with this Agreement,
including legal fees, accounting fees, financial advisory fees and other professional and
non-professional fees and expenses, shall be paid by the party hereto incurring such expenses.

     Section 4.4 Tax Matters. EPE shall cause TEPPCO GP to provide a copy of the TEPPCO MLP
2007 federal income Tax Returns to each of the Sellers for its review and comment on or before the
tenth Business Day prior to the due date (including extensions) for such Tax Returns and use
reasonable efforts to consult with each of the Sellers with respect to the preparation of the
schedules K-1 relating to such Tax Returns.

     Section 4.5 Unitholder Approval of Amendment to EPE Partnership Agreement. As reasonably
practicable after the issuance of the Class B Units and Class C Units, EPE shall seek unitholder
approval of the conversion, at the applicable time set forth in the Amendment to EPE Partnership
Agreement, of the Class B Units and Class C Units into Units representing limited partner interests
of EPE. Such unitholder approval shall be conducted in the manner required for the conversion of
the Class B Units and Class C Units and the issuance of Units upon conversion thereof, to be made
in accordance with the EPE Partnership Ageement and applicable NYSE rules.

ARTICLE V

REMEDIES FOR DEFAULT

     Section 5.1 Indemnity Regarding Section 3.1 and Section 3.3 Representations and Covenants.
Subject to the provisions of this Article V, each of the Sellers, jointly and severally, shall
indemnify and hold harmless EPE, EPE Holdings and EPE Holdings’ members and Representatives (the
“EPE Indemnified Parties”) from any and all Damages incurred by any such person in connection with
the breach of (a) a representation or warranty by such Seller set forth in Section 3.1 or
by either Seller set forth in Section 3.3 or (b) a covenant or agreement made by the
Sellers hereunder; provided that, for purposes of calculating the amount of any

27

 

Damages pursuant to
Section 5.1(a), such representations and warranties shall be read and interpreted as if any
Materiality Requirement contained therein were not contained therein. Notwithstanding the
forgoing, neither Seller will have any obligation to indemnify any EPE Indemnified Party for
Damages arising pursuant to Section 5.1(a) for individual claims that do not exceed
$250,000 (the “Individual Threshold”) and then only for such claims exceeding the Individual
Threshold that, in the aggregate, exceed $10,000,000, in which event the Sellers shall be liable
for all Damages only in excess of $10,000,000 (provided, however, that the Individual Threshold and
$10,000,000 limitation shall not apply to Damages arising pursuant to Section 5.1(a)
resulting from a breach of the representations and warranties set forth in Section 3.1);
and the liability of the Sellers under Section 5.1(a) shall not exceed $200,000,000 in the
aggregate. For the avoidance of doubt, the Sellers shall have no obligation to indemnify and hold
harmless any member of the TEPPCO Partnership Group Entities or the TEPPCO MLP Partially Owned
Entities pursuant to Section 5.1 except and to the extent that the EPE Indemnified Parties
incur or suffer Damages from the breach of a representation or warranty set forth in Section
3.1 or Section 3.3 or a covenant or agreement made by such Seller hereunder, in which
case such Seller shall be obligated to indemnify and hold harmless the EPE Indemnified Parties to
the extent of such Damages. To the extent that a claim for indemnification under this Section
5.1 includes a claim for remediation costs to address a Release of Hazardous Substance at or
from any of the TEPPCO Pipeline Assets, such remediation costs shall be limited to remediations
that are performed in a manner consistent with the current use of the property and consistent with
then prevailing laws and contracts and leases existing as of the Closing Date.

     Section 5.2 Indemnity Regarding Section 3.2 Representations and Covenants. Subject to the
provisions of this Article V, EPE shall indemnify and hold harmless each of the Sellers and its
members, partners and Representatives (collectively, the “DFI Indemnified Parties”) from any and
all Damages incurred by any such person in connection with the breach of (a) a representation or
warranty set forth in Section 3.2 or (b) a covenant or agreement made by such party
hereunder; provided that, for purposes of calculating the amount of any Damages pursuant to
Section 5.2(a), such representations and warranties shall be read and interpreted as if any
Materiality Requirement contained therein were not contained therein. Notwithstanding the
forgoing, the liability of EPE under Section 5.2(a) shall not exceed $200,000,000 in the
aggregate.

     Section 5.3 Survival of Representations. The representations, warranties, covenants and agreements contained in this Agreement or made
in
any certificate or document delivered pursuant hereto shall survive the Closing regardless of any
investigation made by the parties hereto, any person controlling such party or any of their
Representatives and regardless of any knowledge acquired or capable of being acquired whether
before or after the Closing. The representations and warranties of the parties contained in
Section 3.1, Section 3.2 and Section 3.3 shall survive the Closing and any
investigation by the parties with respect thereto until the expiration of 12 months after the
Closing Date; provided, however, that (i) the representations and warranties of the Sellers set
forth in Section 3.1(d) shall survive indefinitely, and (ii) the representations and
warranties of the Seller set forth in Section 3.3(l) shall survive until the expiration of
36 months after the Closing Date and (iii) the representations and warranties in Section
3.3(q), and Section 3.3(t) shall survive for the applicable statute of limitations,
including all periods of extension thereof, whether automatic or permissive. The expiration of any
survival period under this Agreement will not affect the liability of any party under Section
5.1 or Section 5.2,

28

 

as the case may be, for any Damages as to which a bona fide claim
relating thereto is asserted prior to the termination of such survival period.

     Section 5.4 Calculation of Damages.

          (a) Any calculation of Damages for purposes of this Article V shall be net of any insurance
proceeds or other payments received by or on behalf of such indemnified party with respect thereto
after taking into account retrospective premium adjustments, experience-based premium adjustments
and indemnification obligations. If an indemnified party hereunder shall have received an
indemnity payment in respect of Damages and shall subsequently receive, directly or indirectly,
insurance or other proceeds in respect of the claims or losses giving rise to such Damages then
such indemnified party shall promptly reimburse the indemnifying party an amount equal to the
amount of such proceeds provided the same does not exceed the amount of the indemnity payment
received.

          (b) For the avoidance of doubt, any calculation of Damages for purposes of this Article V
shall be net of amounts reflected as reserves on the TEPPCO MLP Balance Sheet.

     Section 5.5 Enforcement of this Agreement. The parties hereto acknowledge and agree that
an award of money damages would be inadequate for any breach of this Agreement by any party and any
such breach would cause the non-breaching parties irreparable harm. Accordingly, the parties
hereto agree that, in the event of any breach or threatened breach of this Agreement by one of the
parties, the parties will also be entitled, without the requirement of posting a bond or other
security, to equitable relief, including injunctive relief and specific performance, provided such
party is not in material default hereunder. Such remedies will not be the exclusive remedies for
any breach of this Agreement but will be in addition to all other remedies available at law or
equity to each of the parties.

     Section 5.6 Exclusive Remedy. Except as set forth in Section 5.5 and Section 5.8, the parties agree that the
indemnification provisions in this Article V shall be the exclusive remedy of the parties with
respect to breaches of representations and warranties and failures to perform covenants or
agreements hereunder.

     Section 5.7 Limitation on Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, IN NO EVENT SHALL ANY PARTY HERETO BE LIABLE TO ANY OTHER PARTY HERETO, OR TO SUCH OTHER
PARTY’S INDEMNITEES, UNDER THIS AGREEMENT FOR ANY EXEMPLARY OR PUNITIVE DAMAGES; PROVIDED THAT, IF
ANY INDEMNIFIED PARTY HEREUNDER IS HELD LIABLE TO A THIRD PARTY FOR ANY SUCH DAMAGES AND THE
INDEMNIFYING PARTY HEREUNDER IS OBLIGATED TO INDEMNIFY SUCH INDEMNIFIED PARTY FOR THE MATTER THAT
GAVE RISE TO SUCH DAMAGES, THE INDEMNIFYING PARTY SHALL BE LIABLE FOR, AND OBLIGATED TO REIMBURSE
SUCH INDEMNIFIED PARTY FOR SUCH DAMAGES.

     Section 5.8 No Waiver Relating to Claims for Fraud/Willful Misconduct. The liability of any
party under this Article V shall be in addition to, and not exclusive of, any other liability that
such party may have at law or in equity based on such party’s (a) fraudulent acts or

29

 

omissions or
(b) willful misconduct. None of the provisions set forth in this Agreement shall be deemed to be a
waiver by or release of any party of any right or remedy which such party may have at law or equity
based on any other party’s fraudulent acts or omissions or willful misconduct nor shall any such
provisions limit, or be deemed to limit, (i) the amounts of recovery sought or awarded in any such
claim for fraud or willful misconduct, (ii) the time period during which a claim for fraud or
willful misconduct may be brought, or (iii) the recourse which any such party may seek against
another party with respect to a claim for fraud or willful misconduct.

ARTICLE VI

MISCELLANEOUS

     Section 6.1 Notices. Any notice, request, instruction, correspondence or other document to
be given hereunder by any party to another party (each, a “Notice”) shall be in writing and
delivered in person or by courier service requiring acknowledgment of receipt of delivery or mailed
by U.S. registered or certified mail, postage prepaid and return receipt requested, or by
telecopier, as follows; provided, that copies to be delivered below shall not be required for
effective notice and shall not constitute effective notice:

If to DFIGP, addressed to:

DFI GP Holdings, L.P.

c/o EPCO, Inc.

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: Richard H. Bachmann

Telecopy: (713) 381-6568

If to DFI, addressed to:

Duncan Family Interests, Inc.

c/o EPCO, Inc.

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: President

Telecopy: (713) 381-6568

If to EPE, addressed to:

Enterprise GP Holdings L.P.

c/o EPE Holdings, LLC, general partner

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: President and CEO

Telecopy: (713) 381-6529

30

 

     Notice given by personal delivery, courier service or mail shall be effective upon actual
receipt. Notice given by telecopier shall be confirmed by appropriate answer back and 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 by telecopier shall be confirmed promptly after transmission in
writing by certified mail or personal delivery. Any party may change any address to which Notice
is to be given to it by giving Notice as provided above of such change of address.

     Section 6.2 Governing Law; Jurisdiction; Waiver of Jury Trial. To the maximum extent
permitted by applicable Law, the provisions of this agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Texas, without regard to principles of
conflicts of law. Each party thereto hereby irrevocably and unconditionally (a) consents and
submits to the exclusive jurisdiction of any federal or state court located in Houston, Texas (the
“Texas Courts”) for any actions, suits or proceedings arising out of or relating to this Agreement
or the transactions contemplated by this Agreement (and agrees not to commence any litigation
relating thereto except in such courts), (b) waives any objection to the laying of venue of any
such litigation in the Texas Courts and agrees not to plead or claim in any Texas Court that such
litigation brought therein has been brought in any inconvenient forum and (c) acknowledges and
agrees that any controversy which may arise under this Agreement is likely to involve complicated
and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives
any right such party may have to a trial by jury in respect of any litigation directly or
indirectly arising or relating to this Agreement or the transactions contemplated by this
Agreement.

     Section 6.3 Entire Agreement; Amendments and Waivers. This Agreement constitutes the
entire agreement between and among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions, whether oral or
written, of the parties, and there are no warranties, representations or other agreements between
or among the parties in connection with the subject matter hereof except as set forth specifically
herein. No supplement, modification or waiver of this Agreement shall be binding unless executed
in writing by the party to be bound thereby. The failure of a party to exercise any right or
remedy shall not be deemed or constitute a waiver of such right or remedy in the future. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision hereof (regardless of whether similar), nor shall any such waiver constitute a
continuing waiver unless otherwise expressly provided.

     Section 6.4 Binding Effect and Assignment. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective permitted successors and assigns.
Nothing in this Agreement, express or implied, is intended to confer upon any person other than the
parties hereto and their respective permitted successors and assigns, any rights, benefits or
obligations hereunder. No party hereto may assign, transfer, dispose of or otherwise alienate this
Agreement or any of its rights, interests or obligations under this Agreement (whether by operation
of law or otherwise). Any attempted assignment, transfer, disposition or alienation in violation
of this Agreement shall be null, void and ineffective.

31

 

     Section 6.5 Severability. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any rule of applicable Law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated herein are not affected in
any manner materially adverse to any party hereto. Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the parties hereto as
closely as possible in a mutually acceptable manner in order that the transactions contemplated
herein are consummated as originally contemplated to the fullest extent possible.

     Section 6.6 Execution. This Agreement may be executed in multiple counterparts each of
which shall be deemed an original and all of which shall constitute one instrument.

     Section 6.7 Disclosure Letters. Each disclosure identified in the TEPPCO Disclosure Letter
or elsewhere in this Agreement constitutes a disclosure by the disclosing party with respect to the
specific section of this Agreement identified in the TEPPCO Disclosure Letter as applicable, and
with respect to any other section of this Agreement reasonably related thereto.

[The remainder of this page is blank]

32

 

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

ENTERPRISE GP HOLDINGS L.P.

By: EPE Holdings, LLC, its general partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Michael A. Creel
 	 
	 	 	Name:  	Michael A. Creel 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	

DUNCAN FAMILY INTERESTS, INC.

 	 
	 	By:  	/s/ Darryl E. Smith
 	 
	 	 	Name:  	Darryl E. Smith 	 
	 	 	Title:  	Treasurer 	 
	 

DFI GP HOLDINGS, L.P.

By: DFI Holdings, LLC, its general partner

By: Dan Duncan LLC, its sole member

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Richard H. Bachmann
 	 
	 	 	Name:  	Richard H. Bachmann 	 
	 	 	Title:  	Executive Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]