Document:

<PAGE>
                                                                   EXHIBIT 10.80

                              CKE RESTAURANTS, INC.

                                 AMENDMENT NO. 2
                                       TO
                              EMPLOYMENT AGREEMENT

         This Amendment No. 2 (the "Amendment") to Employment Agreement is made
effective as of March 20, 2007, by and between CKE Restaurants, Inc. (the
"Company") and Brad R. Haley (the "Employee").

                                    RECITALS:

         A. The Company and the Employee entered into an Employment Agreement
dated as of January 2004, and amended on December 6, 2005 (the "Agreement").

         B. The Company and Employee now desire to amend the Agreement as set
forth below.

                                    AGREEMENT

         1. Other Compensation and Fringe Benefits. Section 4(d) of the
Agreement is hereby amended to extend the bonus provided for therein to fiscal
years 2008, 2009 and 2010.

         2. Definitions. Terms used but not defined in this Amendment shall have
the respective meanings assigned to them in the Agreement.

         3. Counterparts. This Amendment may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which shall
constitute one Amendment.

         4. Terms and Conditions of Agreement. Except as specifically amended by
this Amendment, all terms and conditions of the Agreement shall remain in full
force and effect.

                            [SIGNATURE PAGE FOLLOWS]

                                       1

<PAGE>

         IN WITNESS WHEREOF, this Amendment is executed by the undersigned as of
the date first written above.

                                   /s/ Brad R. Haley
                                   ---------------------------------------------
                                   Brad R. Haley

                                   CKE Restaurants, Inc.

                                   By: /s/ Peter Churm
                                      ------------------------------------------
                                       Peter Churm
                                       Director and Chairman of the Compensation
                                       Committee of the Board of Directors

                                       2exv4w2

 

Exhibit 4.2

EXECUTION VERSION

 

 

 

REGENCY ENERGY PARTNERS LP

REGENCY ENERGY FINANCE CORP.

AND EACH OF THE GUARANTORS PARTY HERETO

8
3/8% SENIOR NOTES DUE 2013

 

INDENTURE

Dated as of December 12, 2006

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	 
	 	 
	310 (a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.10
	(b)
	 	7.10
	(c)
	 	N.A.
	311 (a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312 (a)
	 	2.05
	(b)
	 	12.03
	(c)
	 	12.03
	313 (a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06; 7.07
	(c)
	 	7.06; 12.02
	(d)
	 	7.06
	314 (a)
	 	4.03; 12.02; 12.05
	(b)
	 	N.A.
	(c)(1)
	 	12.04
	(c)(2)
	 	12.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	12.05
	(f)
	 	N.A.
	315 (a)
	 	7.01
	(b)
	 	7.05; 12.02
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.11
	316 (a)(last sentence)
	 	2.09
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	2.12
	317 (a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.04
	318 (a)
	 	12.01
	(b)
	 	N.A.
	(c)
	 	12.01

 

			
	N.A. means not applicable.
	 
	*	 	This Cross Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1
	 
	 	 	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Other Definitions	 	 	23	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act	 	 	24	 
	Section 1.04
	 	Rules of Construction	 	 	24	 
	 
	 	 	 	 	 	 
	 ARTICLE 2
	 
	 	 	 	 	 	 
	 THE NOTES
	 
	 	 	 	 	 	 
	Section 2.01
	 	Form and Dating	 	 	25	 
	Section 2.02
	 	Execution and Authentication	 	 	25	 
	Section 2.03
	 	Registrar and Paying Agent	 	 	26	 
	Section 2.04
	 	Paying Agent to Hold Money in Trust	 	 	26	 
	Section 2.05
	 	Holder Lists	 	 	26	 
	Section 2.06
	 	Transfer and Exchange	 	 	26	 
	Section 2.07
	 	Replacement Notes	 	 	36	 
	Section 2.08
	 	Outstanding Notes	 	 	36	 
	Section 2.09
	 	Treasury Notes	 	 	37	 
	Section 2.10
	 	Temporary Notes	 	 	37	 
	Section 2.11
	 	Cancellation	 	 	37	 
	Section 2.12
	 	Defaulted Interest	 	 	37	 
	 
	 	 	 	 	 	 
	 ARTICLE 3
	 
	 	 	 	 	 	 
	 REDEMPTION AND REPURCHASE
	 
	 	 	 	 	 	 
	Section 3.01
	 	Notices to Trustee	 	 	38	 
	Section 3.02
	 	Selection of Notes to Be Redeemed	 	 	38	 
	Section 3.03
	 	Notice of Redemption	 	 	38	 
	Section 3.04
	 	Effect of Notice of Redemption	 	 	39	 
	Section 3.05
	 	Deposit of Redemption or Purchase Price	 	 	39	 
	Section 3.06
	 	Notes Redeemed or Purchased in Part	 	 	40	 
	Section 3.07
	 	Optional Redemption	 	 	40	 
	Section 3.08
	 	[Reserved]	 	 	41	 
	Section 3.09
	 	Offer to Purchase by Application of Excess Proceeds	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE 4
	 
	 	 	 	 	 	 
	COVENANTS
	 
	 	 	 	 	 	 
	Section 4.01
	 	Payment of Notes	 	 	42	 
	Section 4.02
	 	Maintenance of Office or Agency	 	 	43	 
	Section 4.03
	 	Reports	 	 	43	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.04
	 	Compliance Certificate	 	 	44	 
	Section 4.05
	 	Taxes	 	 	44	 
	Section 4.06
	 	Stay, Extension and Usury Laws	 	 	44	 
	Section 4.07
	 	Restricted Payments	 	 	45	 
	Section 4.08
	 	Dividend and Other Payment Restrictions Affecting Subsidiaries	 	 	48	 
	Section 4.09
	 	Incurrence of Indebtedness and Issuance of Disqualified Equity	 	 	49	 
	Section 4.10
	 	Asset Sales	 	 	52	 
	Section 4.11
	 	Transactions with Affiliates	 	 	53	 
	Section 4.12
	 	Liens	 	 	55	 
	Section 4.13
	 	Business Activities	 	 	55	 
	Section 4.14
	 	Corporate Existence	 	 	56	 
	Section 4.15
	 	Offer to Repurchase Upon Change of Control	 	 	56	 
	Section 4.16
	 	Limitation on Sale and Leaseback Transactions	 	 	58	 
	Section 4.17
	 	Payments for Consent	 	 	58	 
	Section 4.18
	 	Additional Guarantees	 	 	58	 
	Section 4.19
	 	Designation of Restricted and Unrestricted Subsidiaries	 	 	58	 
	Section 4.20
	 	Termination of Covenants	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE 5
	 
	 	 	 	 	 	 
	SUCCESSORS
	 
	 	 	 	 	 	 
	Section 5.01
	 	Merger, Consolidation, or Sale of Assets	 	 	59	 
	Section 5.02
	 	Successor Person Substituted	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE 6
	 
	 	 	 	 	 	 
	DEFAULTS AND REMEDIES
	 
	 	 	 	 	 	 
	Section 6.01
	 	Events of Default	 	 	61	 
	Section 6.02
	 	Acceleration	 	 	63	 
	Section 6.03
	 	Other Remedies	 	 	64	 
	Section 6.04
	 	Waiver of Past Defaults	 	 	64	 
	Section 6.05
	 	Control by Majority	 	 	64	 
	Section 6.06
	 	Limitation on Suits	 	 	64	 
	Section 6.07
	 	Rights of Holders of Notes to Receive Payment	 	 	65	 
	Section 6.08
	 	Collection Suit by Trustee	 	 	65	 
	Section 6.09
	 	Trustee May File Proofs of Claim	 	 	65	 
	Section 6.10
	 	Priorities	 	 	65	 
	Section 6.11
	 	Undertaking for Costs	 	 	66	 
	Section 6.12
	 	Willful Action or Inaction	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE 7
	 
	 	 	 	 	 	 
	TRUSTEE
	 
	 	 	 	 	 	 
	Section 7.01
	 	Duties of Trustee	 	 	66	 
	Section 7.02
	 	Rights of Trustee	 	 	67	 
	Section 7.03
	 	Individual Rights of Trustee	 	 	68	 
	Section 7.04
	 	Trustee’s Disclaimer	 	 	68	 

-ii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 7.05
	 	Notice of Defaults	 	 	68	 
	Section 7.06
	 	Reports by Trustee to Holders of the Notes	 	 	68	 
	Section 7.07
	 	Compensation and Indemnity	 	 	69	 
	Section 7.08
	 	Replacement of Trustee	 	 	69	 
	Section 7.09
	 	Successor Trustee by Merger, etc.	 	 	70	 
	Section 7.10
	 	Eligibility; Disqualification	 	 	70	 
	Section 7.11
	 	Preferential Collection of Claims Against the Issuers	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE 8
	 
	 	 	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	 	 	 	 	 	 
	Section 8.01
	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	 	71	 
	Section 8.02
	 	Legal Defeasance and Discharge	 	 	71	 
	Section 8.03
	 	Covenant Defeasance	 	 	71	 
	Section 8.04
	 	Conditions to Legal or Covenant Defeasance	 	 	72	 
	Section 8.05
	 	Deposited Money and Government
Securities to be Held in Trust; Other Miscellaneous Provisions	 	 	73	 
	Section 8.06
	 	Repayment to the Issuers	 	 	74	 
	Section 8.07
	 	Reinstatement	 	 	74	 
	 
	 	 	 	 	 	 
	ARTICLE 9
	 
	 	 	 	 	 	 
	AMENDMENT, SUPPLEMENT AND WAIVER
	 
	 	 	 	 	 	 
	Section 9.01
	 	Without Consent of Holders of Notes	 	 	74	 
	Section 9.02
	 	With Consent of Holders of Notes	 	 	75	 
	Section 9.03
	 	Compliance with Trust Indenture Act	 	 	76	 
	Section 9.04
	 	Revocation and Effect of Consents	 	 	76	 
	Section 9.05
	 	Notation on or Exchange of Notes	 	 	77	 
	Section 9.06
	 	Trustee to Sign Amendments, etc.	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE 10
	 
	 	 	 	 	 	 
	NOTE GUARANTEES
	 
	 	 	 	 	 	 
	Section 10.01
	 	Guarantee	 	 	77	 
	Section 10.02
	 	Limitation on Guarantor Liability	 	 	78	 
	Section 10.03
	 	Execution and Delivery of Note Guarantee	 	 	79	 
	Section 10.04
	 	Guarantors May Consolidate, etc., on Certain Terms	 	 	79	 
	Section 10.05
	 	Releases	 	 	80	 
	 
	 	 	 	 	 	 
	ARTICLE 11
	 
	 	 	 	 	 	 
	SATISFACTION AND DISCHARGE
	 
	 	 	 	 	 	 
	Section 11.01
	 	Satisfaction and Discharge	 	 	80	 
	Section 11.02
	 	Application of Trust Money	 	 	81	 

-iii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 12
	 
	 	 	 	 	 	 
	MISCELLANEOUS
	 
	 	 	 	 	 	 
	Section 12.01
	 	Trust Indenture Act Controls	 	 	82	 
	Section 12.02
	 	Notices	 	 	82	 
	Section 12.03
	 	Communication by Holders of Notes with Other Holders of Notes	 	 	83	 
	Section 12.04
	 	Certificate and Opinion as to Conditions Precedent	 	 	83	 
	Section 12.05
	 	Statements Required in Certificate or Opinion	 	 	83	 
	Section 12.06
	 	Rules by Trustee and Agents	 	 	84	 
	Section 12.07
	 	No Personal Liability of Directors, Officers, Employees and Stockholders	 	 	84	 
	Section 12.08
	 	Governing Law	 	 	84	 
	Section 12.09
	 	No Adverse Interpretation of Other Agreements	 	 	84	 
	Section 12.10
	 	Successors	 	 	84	 
	Section 12.11
	 	Severability	 	 	84	 
	Section 12.12
	 	Counterpart Originals	 	 	85	 
	Section 12.13
	 	Table of Contents, Headings, etc.	 	 	85	 

-iv-

 

EXHIBITS

	 	 	 
	Exhibit A

	 	FORM OF NOTE
	Exhibit B

	 	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C

	 	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D

	 	FORM OF CERTIFICATE ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
	Exhibit E

	 	FORM OF NOTATION OF GUARANTEE
	Exhibit F

	 	FORM OF SUPPLEMENTAL INDENTURE

-v-

 

          
INDENTURE dated as of December 12, 2006 among REGENCY ENERGY PARTNERS LP, a Delaware limited
partnership (“Regency Energy Partners”), and REGENCY ENERGY FINANCE CORP., a Delaware corporation
(“Finance Corp.” and, together with Regency Energy Partners, the “Issuers”), the Guarantors (as
defined) and Wells Fargo Bank, National Association, as trustee.

          
The Issuers, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined) of the 8 3/8% Senior Notes due 2013
(the “Notes”):

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01 Definitions.

          
“144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that will be issued in a denomination
equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

          
“Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or becomes a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Subsidiary of, such specified Person, but excluding
Indebtedness which is extinguished, retired or repaid in connection with such Person merging
with or becoming a Subsidiary of such specific Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

          
“Additional Notes” means additional Notes (other than the Initial Notes) issued under this
Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same series as the
Initial Notes.

          
“Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to
be control; provided, further, that any third Person which also beneficially owns 10% or more of
the Voting Stock of a specified Person shall not be deemed to be an Affiliate of either the
specified Person or the other Person merely because of such common ownership in such specified
Person. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings.

          
“Agent” means any Registrar or Paying Agent.

          
“Applicable Premium” means, with respect to any Note on any redemption date, the greater of:

          
(1) 1.0% of the principal amount of the Note; or

 

 

     (2) the excess of: (a) the present value at such Redemption Date of (i) the redemption
price of the Note at December 15, 2010 (such redemption price being set forth in the table
appearing in Section 3.07 hereof) plus (ii) all required interest payments due on the Note
through December 15, 2010 (excluding accrued but unpaid interest to the Redemption Date),
computed using a discount rate equal to the Treasury Rate as of such Redemption Date plus 50
basis points; over (b) the principal amount of the Note.

          
“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

          
“Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any properties or assets;
provided, however, that the sale, lease, conveyance or other disposition of all or
substantially all of the properties or assets of Regency Energy Partners and its
Subsidiaries taken as a whole will be governed by Section 4.15 hereof and/or Section 5.01
hereof and not by Section 4.10 hereof; and

     (2) the issuance of Equity Interests in any of Regency Energy Partners’ Restricted
Subsidiaries or the sale of Equity Interests in any of its Restricted Subsidiaries.

          
Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

     (1) any single transaction or series of related transactions that involves properties
or assets having a Fair Market Value of less than $10.0 million;

     (2) a transfer of properties or assets between or among Regency Energy Partners and its
Restricted Subsidiaries;

     (3) an issuance or sale of Equity Interests by a Restricted Subsidiary of Regency
Energy Partners to Regency Energy Partners or to a Restricted Subsidiary of Regency Energy
Partners;

     (4) the sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or obsolete
properties or assets in the ordinary course of business;

     (5) the sale or other disposition of cash or Cash Equivalents, Hedging Obligations or
other financial instruments in the ordinary course of business;

     (6) a Restricted Payment that does not violate Section 4.07 hereof or a Permitted
Investment;

     (7) any trade or exchange by Regency Energy Partners or any Restricted Subsidiary of
properties or assets of any type for properties or assets of any type owned or held by
another Person, including any disposition of some but not all of the Equity Interests of a
Restricted Subsidiary in exchange for assets or properties and after which the Person whose
Equity Interests have been so disposed of continues to be a Restricted Subsidiary, provided
that the Fair Market Value of the properties or assets traded or exchanged by Regency Energy
Partners or such Restricted Subsidiary (together with any cash or Cash Equivalents and
liabilities assumed) is rea-

-2-

 

sonably equivalent to the Fair Market Value of the properties or assets (together with
any cash or Cash Equivalents and liabilities assumed) to be received by Regency Energy
Partners or such Restricted Subsidiary; and provided, further, that any cash received must
be applied in accordance with Section 4.10 hereof; and

     (8) the creation or perfection of a Lien that is not prohibited by Section 4.12 hereof
and any disposition in connection with a Permitted Lien.

          
“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in
such transaction, determined in accordance with GAAP; provided, however, that if such sale and
leaseback transaction results in a Capital Lease Obligation, the amount of Indebtedness represented
thereby will be determined in accordance with the definition of “Capital Lease Obligation.”

          
“Available Cash” has the meaning assigned to such term in the Partnership Agreement, as in
effect on the date of this Indenture.

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

          
“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

          
“Board of Directors” means:

     (1) with respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the board of directors or board of managers of the
general partner of the partnership, or, if such general partner is itself a limited
partnership, then the board of directors or board of managers of its general partner;

     (3) with respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person serving a
similar function.

          
“Broker-Dealer” has the meaning attributed to the term “Participating Broker-Dealer” in the
initial Registration Rights Agreement.

          
“Business Day” means any day other than a Legal Holiday.

-3-

 

          
“Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet prepared in accordance with GAAP.

          
“Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person,

          
but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether
or not such debt securities include any right of participation with Capital Stock.

          
“Cash Equivalents” means:

     (1) United States dollars or, in an amount up to the amount necessary or appropriate to
fund local operating expenses, other currencies;

     (2) securities issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided that
the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than one year from the date of acquisition;

     (3) certificates of deposit and eurodollar time deposits with maturities of six months
or less from the date of acquisition, bankers’ acceptances with maturities not exceeding six
months and overnight bank deposits, in each case, with any domestic commercial bank having
capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or
better;

     (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

     (5) commercial paper having one of the two highest ratings obtainable from Moody’s or
S&P and, in each case, maturing within six months after the date of acquisition; and

     (6) money market funds at least 95% of the assets of which constitute Cash Equivalents
of the kinds described in clauses (1) through (5) of this definition.

          
“Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties or assets of Regency Energy Partners and its
Subsidiaries taken as a

-4-

 

whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act),
which occurrence is followed by a Ratings Decline within 90 days;

     (2) the adoption of a plan relating to the liquidation or dissolution of Regency Energy
Partners or the removal of the General Partner by the limited partners of Regency Energy
Partners;

     (3) the consummation of any transaction (including, without any merger or
consolidation), the result of which is that any “person” (as defined above), other than a
Qualified Owner, becomes the Beneficial Owner, directly or indirectly, of more than 50% of
the Voting Stock of the General Partner or of Regency Energy Partners, measured by voting
power rather than number of shares, which occurrence is followed by a Ratings Decline within
90 days; or

     (4) the first day on which a majority of the members of the Board of Directors of the
General partner are not Continuing Directors, which occurrence is followed by a Ratings
Decline within 90 days.

          
Notwithstanding the preceding, a conversion of Regency Energy Partners from a limited
partnership to a corporation, limited liability company or other form of entity or an exchange of
all of the outstanding limited partnership interests for capital stock in a corporation, for member
interests in a limited liability company or for Equity Interests in such other form of entity shall
not constitute a Change of Control, so long as following such conversion or exchange the “persons”
(as defined above) who Beneficially Owned the Capital Stock of Regency Energy Partners immediately
prior to such transactions continue to Beneficially Own in the aggregate more than 50% of the
Voting Stock of such entity, or continue to Beneficially Own sufficient Equity Interests in such
entity to elect a majority of its directors, managers, trustees or other persons serving in a
similar capacity for such entity, and, in either case no “person,” excluding any Qualifying Owner,
Beneficially Owns more than 50% of the Voting Stock of such entity.

          
“Company Order” means a written order delivered to the Trustee by Regency Energy Partners and
executed on its behalf by an Officer of the General Partner.

          
“Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without duplication:

     (1) an amount equal to (i) any extraordinary loss plus (ii) any net loss realized by
such Person or any of its Restricted Subsidiaries in connection with an Asset Sale or the
disposition of any securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries, in
each case, to the extent such losses were deducted in computing such Consolidated Net
income; plus

     (2) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such prevision for taxes was deducted in
computing such Consolidated Net Income; plus

     (3) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued (including amortization of debt issuance costs and
original issue discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net of all

-5-

 

payments, if any, pursuant to Hedging Obligations), to the extent that any such expense
was deducted in computing such Consolidated Net Income; plus

     (4) depreciation, amortization (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents an accrual of
or reserve for cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries for such
period to the extent that such depreciation, amortization and other non-cash expenses were
deducted in computing such Consolidated Net Income; plus

     (5) unrealized non-cash losses resulting from foreign currency balance sheet
adjustments required by GAAP to the extent such losses were deducted in computing such
Consolidated Net Income; plus

     (6) all extraordinary or non-recurring items of gain or loss, or revenue or expense;
minus

     (7) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business,

in each case, on a consolidated basis and determined in accordance with GAAP.

          
“Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

     (1) the aggregate Net Income (but not loss) of any Person that is not a Restricted
Subsidiary or that is accounted for by the equity method of accounting will be included only
to the extent of the amount of dividends or similar distributions paid in cash to the
specified Person or a Restricted Subsidiary of the Person;

     (2) the Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted Subsidiary
of that Net Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly, by operation
of the terms of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Restricted Subsidiary or its
stockholders, partners or members;

     (3) the cumulative effect of a change in accounting principles will be excluded;

     (4) unrealized losses and gains under derivative instruments included in the
determination of Consolidated Net Income, including those resulting from the application of
Statement of Financial Accounting Standards No. 133 will be excluded; and

     (5) any nonrecurring charges relating to any premium or penalty paid, write off of
deferred finance costs or other charges in connection with redeeming or retiring any
Indebtedness prior to its Stated Maturity will be excluded.

          
“Consolidated Net Tangible Assets” means, with respect to any Person at any date of
determination, the aggregate amount of total assets included in such Person’s most recent quarterly
or annual

-6-

 

consolidated balance sheet prepared in accordance with GAAP less applicable reserves reflected
in such balance sheet, after (i) adding the aggregate incremental amount of total assets that would
have resulted from an acquisition of assets from an Affiliate that is accounted for as a pooling
had it been accounted for using purchase accounting and (ii) deducting the following amounts: (a)
all current liabilities reflected in such balance sheet, and (b) all goodwill, trademarks, patents,
unamortized debt discounts and expenses and other like intangibles reflected in such balance sheet.

          
“Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the General Partner who:

     (1) was a member of such Board of Directors on the date of this Indenture; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of Directors at the
time of such nomination or election,

          
“Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Issuers.

          
“Credit Agreement” means that certain Fourth Amended and Restated Credit Agreement, dated as
of December 1, 2004 and amended and restated at various dates, most recently August 15, 2006, by
and among Regency Gas Services LP, Regency Energy Partners, the Guarantors party thereto, the
lenders party thereto, Wachovia Bank, National Association, as administrative agent, collateral
agent, swingline lender and issuing bank, UBS Securities LLC and Wachovia Capital Markets, LLC, as
joint lead arrangers and joint book managers for the Tranche B-1 Term Loans, Wachovia Capital
Markets, LLC, Citigroup Global Markets Inc. and UBS Securities LLC, as joint lead arrangers and
joint book managers for the Revolving Loans, UBS Loan Finance LLC, as syndication agent, Citigroup
Global Markets Inc., as co-syndication agent for the Revolving Loans, and Fortis Capital Corp. and
JPMorgan Chase Bank, N.A., as co-documentation agents, providing for $850.0 million of borrowings
and letters of credit, including any related notes, Guarantees, collateral documents, instruments
and agreements executed in connection therewith, and, in each case, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to time.

          
“Credit Facilities” means, one or more debt facilities (including the Credit Agreement) or
commercial paper facilities, in each case, with banks or other institutional lenders providing for
revolving credit loans, term loans, accounts receivable financing (including through the sale of
accounts receivable to such lenders or to special purpose entities formed to borrow from such
lenders against such receivables) or letters of credit, in each case, as amended, restated,
modified, renewed, refunded, replaced or refinanced (including by means of sales of debt securities
to institutional investors) in whole or in part from time to time.

          
“Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

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

          
“Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except
that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note’ attached thereto.

-7-

 

          
“Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and
any and all successors thereto appointed as Depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

          
“Disqualified Equity” means any Equity Interest that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case, at the option
of the holder of the Equity Interest), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the
option of the holder of the Equity Interest, in whole or in part, on or prior to the date that is
91 days after the date on which the Notes mature. Notwithstanding the preceding sentence, any
Equity Interest that would constitute Disqualified Equity solely because the holders of the Equity
Interest have the right to require Regency Energy Partners to repurchase such Equity Interest upon
the occurrence of a change of control or an asset sale will not constitute Disqualified Equity if
the terms of such Equity Interest provide that Regency Energy Partners may not repurchase or redeem
any such Equity Interest pursuant to such provisions unless such repurchase or redemption complies
with Section 4.07 hereof.

          
“Domestic Subsidiary” means any Restricted Subsidiary of Regency Energy Partners that was
formed under the laws of the United States or any state of the United States or the District of
Columbia.

          
“Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

          
“Equity Offering” means any public or private sale of Equity Interests (other than
Disqualified Equity) made for cash on a primary basis by Regency Energy Partners after the date of
this Indenture.

          
“Exchange Notes” means the Notes issued in an Exchange Offer pursuant to Section 2.06(f)
hereof. “Exchange Offer” has the meaning set forth in the applicable Registration Rights
Agreement.

          
“Exchange Offer Registration Statement” has the meaning set forth in the applicable
Registration Rights Agreement.

          
“Existing Indebtedness” means the aggregate principal amount of Indebtedness of Regency Energy
Partners and its Subsidiaries (other than Indebtedness under the Credit Agreement) in existence on
the date of this Indenture, until such amounts are repaid.

          
“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller in a transaction not involving distress or necessity of either party, determined in
good faith by the Board of Directors of Regency Energy Partners (unless otherwise provided in this
Indenture).

          
“FERC Subsidiary” means a Restricted Subsidiary of Regency Energy Partners that is subject to
the regulatory jurisdiction of the Federal Energy Regulatory Commission (or any successor thereof)
under Section 7(c) of the Natural Gas Act of 1938.

          
“Fixed Charge Coverage Ratio” means with respect to any specified Person for any four-quarter
reference period, the ratio of the Consolidated Cash Flow of such Person for such period to the

-8-

 

Fixed Charges of such Person for such period. If the specified Person or any of its
Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or
otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues,
repurchases or redeems Disqualified Equity subsequent to the commencement of the applicable
four-quarter reference period and on or prior to the date on which the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed
Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption,
Guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or
such issuance, repurchase or redemption of Disqualified Equity, and the use of the proceeds
therefrom, as if the same had occurred at the beginning of such period.

          
In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) acquisitions that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations and including any related
financing transactions during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date will be given pro forma effect as
if they had occurred on the first day of the four-quarter reference period, including any
Consolidated Cash Flow and any pro forma expense and cost reductions that have occurred or
are reasonably expected to occur, in the reasonable judgment of the chief financial or
accounting officer of Regency Energy Partners (regardless of whether those cost savings or
operating improvements could then be reflected in pro forma financial statements in
accordance with Regulation S-X promulgated under the Securities Act or any other regulation
or policy of the SEC related thereto);

     (2) the Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded;

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges will not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date;

     (4) interest income reasonably anticipated by such Person to be received during the
applicable four-quarter period from cash or Cash Equivalents held by such Person or any
Restricted Subsidiary of such Person, which cash or Cash Equivalents exist on the
Calculation Date or will exist as a result of the transaction giving rise to the need to
calculate the Fixed Charge Coverage Ratio, will be included;

     (5) if any Indebtedness bears a floating rate of interest, the interest expense on such
Indebtedness will be calculated as if the average rate in effect from the beginning of the
applicable period to the Calculation Date had been the applicable rate for the entire period
(taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging
Obligation has a remaining term as at the Calculation Date in excess of 12 months); and

     (6) if any Indebtedness is incurred under a revolving credit facility and is being
given pro forma effect, the interest on such Indebtedness shall be calculated based on the
average daily balance of such Indebtedness for the four fiscal quarters subject to the pro
forma calculation.

-9-

 

          
“Fixed Charges” means, with respect to any specified Person for any period, (A) the sum,
without duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including amortization of debt issuance costs and
original issue discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received pursuant to Hedging
Obligations in respect of interest rates; plus

     (2) the consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period; plus

     (3) any interest on Indebtedness of another Person that is guaranteed by such Person or
one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of
its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus

     (4) all dividends, whether paid or accrued and whether or not in cash, on any series of
Disqualified Equity of such Person or any of its Restricted Subsidiaries, other than
dividends on Equity Interests payable solely in Equity Interests of Regency Energy Partners
(other than Disqualified Equity) or to Regency Energy Partners or a Restricted Subsidiary of
Regency Energy Partners; minus

(B) to the extent included in (A) above, write-offs of deferred financing costs of such Person and
its Restricted Subsidiaries during such period and any charge related to, or any premium or penalty
paid in connection with, paying any such Indebtedness of such Person and its Restricted
Subsidiaries prior to its Stated Maturity.

          
“GAAP” means generally accepted accounting principles in the United States, from time to time.

          
“General Partner” means Regency GP LLC, a Delaware limited liability company, and its
successors and permitted assigns as general partner of Regency GP, LP, a Delaware limited
partnership, and its successors and permitted assigns as general partner of Regency Energy Partners
or as the business entity with the ultimate authority to manage the business and operations of
Regency Energy Partners.

          
“Global Note Legend” means the legend set forth in Section 2.06(g)(2) hereof, which is
required to be placed on all Global Notes issued under this Indenture.

          
“Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A hereto and that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f)
hereof.

          
“Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America for the payment of which guarantee or obligations the full faith and credit of
the United States of America is pledged.

-10-

 

          
“Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including by way
of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof,
of all or any part of any Indebtedness.

          
“Guarantors” means each of:

     (1) the Subsidiaries of Regency Energy Partners, other than Finance Corp., executing
this Indenture as initial Guarantors; and

     (2) any other Subsidiary of Regency Energy Partners that becomes a Guarantor in
accordance with the provisions of this Indenture,

and their respective successors and assigns, in each case, until the Note Guarantee of such Person
has been released in accordance with the provisions of this Indenture.

          
“Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person incurred in the ordinary course of business and not for speculative purposes under:

     (1) interest rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements entered into with
one or more financial institutions and designed to reduce costs of borrowing or to protect
the Person or any of its Restricted Subsidiaries entering into the agreement against
fluctuations in interest rates with respect to Indebtedness incurred;

     (2) other agreements or arrangements designed to manage interest rates or interest rate
risk;

     (3) foreign exchange contracts and currency protection agreements entered into with one
of more financial institutions and designed to protect the Person or any of its Restricted
Subsidiaries entering into the agreement against fluctuations in currency exchange rates
with respect to Indebtedness incurred;

     (4) any commodity futures contract, commodity option or other similar agreement or
arrangement designed to protect against fluctuations in the price of Hydrocarbons used,
produced, processed or sold by that Person or any of its Restricted Subsidiaries at the
time; and

     (5) other agreements or arrangements designed to protect such Person or any of its
Restricted Subsidiaries against fluctuations in currency exchange rates or commodity prices.

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

          
“Hydrocarbons” means crude oil, natural gas, natural gas liquids, casinghead gas, drip
gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents,
elements or compounds thereof and products refined or processed therefrom.

          
“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent:

     (1) in respect of borrowed money;

-11-

 

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (3) in respect of bankers’ acceptances;

     (4) representing Capital Lease Obligations or Attributable Debt in respect of sale and
leaseback transactions;

     (5) representing the balance deferred and unpaid of the purchase price of any property
or services due more than six months after such property is acquired or such services are
completed; or

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit, Attributable Debt
and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person
prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness
of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness
is assumed by the specified Person) and, to the extent not otherwise included, the Guarantee by the
specified Person of any Indebtedness of any other Person.

          
Notwithstanding the foregoing, the following shall not constitute “Indebtedness”:

     (1) accrued expenses and trade accounts payable arising in the ordinary course of
business;

     (2) any obligation of Regency Energy Partners or any of its Restricted Subsidiaries in
respect of bid, performance, surety and similar bonds issued for the account of Regency
Energy Partners and any of its Restricted Subsidiaries in the ordinary course of business,
including Guarantees and obligations of Regency Energy Partners or any of its Restricted
Subsidiaries with respect to letters of credit supporting such obligations (in each case
other than an obligation for money borrowed);

     (3) any Indebtedness that has been defeased in accordance with GAAP or defeased
pursuant to the deposit of cash or Government Securities (in an amount sufficient to satisfy
all such Indebtedness at fixed maturity or redemption, as applicable, and all payments of
interest and premium, if any) in a trust or account created or pledged for the sole benefit
of the holders of such Indebtedness and subject to no other Liens, and the other applicable
terms of the instrument governing such Indebtedness;

     (4) any obligation arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided, however, that such obligation is extinguished within five
Business Days of its incurrence; and

     (5) any obligation arising from any agreement providing for indemnities, guarantees,
purchase price adjustments, holdbacks, contingency payment obligations based on the
performance of the acquired or disposed assets or similar obligations (other than guarantees
of Indebtedness) incurred by any Person in connection with the acquisition or disposition of
assets.

          
“Indenture” means this Indenture, as amended or supplemented from time to time.

-12-

 

          
“Initial Notes” means the first $550,000,000 aggregate principal amount of Notes issued under
this Indenture on the date hereof.

          
“Initial Purchasers” means UBS Securities LLC, Lehman Brothers Inc., Wachovia Capital Markets
LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

          
“Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who is not also a QIB.

          
“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P.

          
“Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding (1) commission, travel and similar
advances to officers and employees made in the ordinary course of business and (2) advances to
customers in the ordinary course of business that are recorded as accounts receivable on the
balance sheet of the lender), purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If Regency Energy Partners or any
Restricted Subsidiary of Regency Energy Partners sells or otherwise disposes of any Equity
Interests of any direct or indirect Restricted Subsidiary of Regency Energy Partners such that,
after giving effect to any such sale or disposition, such Person is no longer a Restricted
Subsidiary of Regency Energy Partners, Regency Energy Partners will be deemed to have made an
Investment on the date of any such sale or disposition equal to the Fair Market Value of Regency
Energy Partners’ Investments in such Restricted Subsidiary that were not sold or disposed of in an
amount determined as provided in Section 4.07(b) hereof.

          
“Joint Venture” means any Person that is not a direct or indirect Subsidiary of Regency Energy
Partners in which Regency Energy Partners or any of its Restricted Subsidiaries makes any
Investment.

          
“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of Dallas, New York or at a place of payment are authorized by law, regulation or executive order
to remain closed. If a payment date is a Legal Holiday at a place of payment, payment may be made
at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue
on such payment for the intervening period.

          
“Letter of Transmittal” means the letter of transmittal to be prepared by the Issuers and sent
to all Holders of the Notes for use by such Holders in connection with an Exchange Offer.

          
“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest
in and any filing of or agreement to give any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction other than a precautionary financing statement
respecting a lease not intended as a security interest. In no event shall a right of first refusal
be deemed to constitute a lien.

          
“Liquidated Damages” means all liquidated damages then owing pursuant to a Registration Rights
Agreement.

-13-

 

          
“Moody’s” means Moody’s Investors Service, Inc., or any successor to the rating agency
business thereof.

          
“Net Income” means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:

     (1) any gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with:

     (a) any Asset Sale; or

     (b) the disposition of any securities by such Person or the extinguishment of
any Indebtedness of such Person; and

     (2) any extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss).

          
“Net Proceeds” means the aggregate cash proceeds received by Regency Energy Partners or any of
its Restricted Subsidiaries in respect of any Asset Sale (including any cash received upon the sale
or other disposition of any non-cash consideration received in any Asset Sale), net of:

     (1) the direct costs relating to such Asset Sale, including legal, accounting and
investment banking fees, and sales commissions, and any relocation expenses incurred as a
result of the Asset Sale,

     (2) taxes paid or payable as a result of the Asset Sale, in each case, after taking
into account any available tax credits or deductions and any tax sharing arrangements,

     (3) amounts required to be applied to the repayment of Indebtedness, other than
revolving credit Indebtedness except to the extent resulting in a permanent reduction in
availability of such Indebtedness under a Credit Facility, secured by a Lien on the
properties or assets that were the subject of such Asset Sale and all distributions and
payments required to be made to minority interest holders in Restricted Subsidiaries as a
result of such Asset Sale, and

     (4) any amounts to be set aside in any reserve established in accordance with GAAP or
any amount placed in escrow, in either case for adjustment in respect of the sale price of
such properties or assets or for liabilities associated with such Asset Sale and retained by
Regency Energy Partners or any of its Restricted Subsidiaries until such time as such
reserve is reversed or such escrow arrangement is terminated, in which case Net Proceeds
shall include only the amount of the reserve so reversed or the amount returned to Regency
Energy Partners or its Restricted Subsidiaries from such escrow arrangement, as the case may
be.

          
“Non-Recourse Debt” means Indebtedness:

     (1) as to which neither Regency Energy Partners nor any of its Restricted Subsidiaries
(a) provides credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or
otherwise or (c) is the lender;

-14-

 

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of Regency
Energy Partners or any of its Restricted Subsidiaries to declare a default on such other
Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to
its Stated Maturity; and

     (3) as to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of Regency Energy Partners or any of its Restricted
Subsidiaries except as contemplated by clause (10) of the definition of Permitted Liens.

          
For purposes of determining compliance with Section 4.09 hereof, if any Non-Recourse Debt of
any of Regency Energy Partners’ Unrestricted Subsidiaries ceases to be Non-Recourse Debt of such
Unrestricted Subsidiary, such event will be deemed to constitute an incurrence of Indebtedness by a
Restricted Subsidiary of Regency Energy Partners.

          
“Non-U.S. Person” means a Person who is not a U.S. Person.

          
“Note Guarantee” means the Guarantee by each Guarantor of the Issuers’ obligations under this
Indenture and the Notes, pursuant to the provisions of this Indenture.

          
“Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes under this Indenture,
and unless the context otherwise requires, all references to the Notes shall include the Initial
Notes and any Additional Notes.

          
“Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

          
“Offering Memorandum” means the final Offering Memorandum of the Issuers, dated December 7,
2006 with respect to the Notes.

          
“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person (or, if
such Person is a limited partnership, the general partner of such Person, except it shall be the
General Partner in the case of Regency Energy Partners).

          
“Officers’ Certificate” means, with respect to any Person, a certificate signed on behalf of
such Person by any two of its Officers, one of whom must be the principal executive officer, the
principal financial officer or the principal accounting officer of such Person that meets the
requirements of Section 12.05 hereof.

          
“Operating Surplus” has the meaning assigned to such term in the Partnership Agreement, as in
effect on the date of this Indenture.

          
“Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to Regency Energy Partners, the General Partner, any Subsidiary of Regency Energy Partners
or the General Partner or the Trustee.

-15-

 

          
“Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of
Regency Energy Partners LP, dated as of February 3, 2006, as amended on August 15, 2006 and
September 21, 2006, and as such may be further amended, modified or supplemented from time to time.

          
“Permitted Business” means either (1) gathering, transporting, treating, processing,
marketing, distributing, storing or otherwise handling Hydrocarbons, or activities or services
reasonably related or ancillary thereto including entering into Hedging Obligations related to
these businesses, or (2) any other business that generates gross income that constitutes
“qualifying income” under Section 7704(d) of the Internal Revenue Code of 1986, as amended.

          
“Permitted Business Investments” means Investments by Regency Energy Partners or any of its
Restricted Subsidiaries in any Unrestricted Subsidiary of Regency Energy Partners or in any Joint
Venture, provided that:

     (1) either (a) at the time of such Investment and immediately thereafter, Regency
Energy Partners could incur $1.00 of additional Indebtedness under the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof or (b) such Investment does not exceed the
aggregate amount of Incremental Funds (as defined in Section 4.07 hereof) not previously
expended at the time of making such Investment;

     (2) if such Unrestricted Subsidiary or Joint Venture has outstanding Indebtedness at
the time of such Investment, either (a) all such Indebtedness is Non-Recourse Debt or (b)
any such Indebtedness of such Unrestricted Subsidiaries or Joint Venture that is recourse to
Regency Energy Partners or any of its Restricted Subsidiaries (which shall include all
Indebtedness of such Unrestricted Subsidiary or Joint Venture for which Regency Energy
Partners or any of its Restricted Subsidiaries may be directly or indirectly, contingently
or otherwise, obligated to pay, whether pursuant to the terms of such Indebtedness, by law
or pursuant to any guarantee, including any “claw-back,” “make-well” or “keepwell”
arrangement) could, at the time such Investment is made, be incurred at that time by Regency
Energy Partners and its Restricted Subsidiaries under the Fixed Charge Coverage Ratio test
set forth in Section 4.09(a) hereof; and

     (3) such Unrestricted Subsidiary’s or Joint Venture’s activities are not outside the
scope of the Permitted Business.

          
“Permitted Investments” means:

     (1) any Investment in Regency Energy Partners or in a Restricted Subsidiary of Regency
Energy Partners;

     (2) any Investment in Cash Equivalents;

     (3) any Investment by Regency Energy Partners or any Restricted Subsidiary of Regency
Energy Partners in a Person, if as a result of such Investment:

     (a) such Person becomes a Restricted Subsidiary of Regency Energy Partners; or

     (b) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its properties or assets to, or is
liquidated into, Regency Energy Partners or a Restricted Subsidiary of Regency
Energy Partners,

-16-

 

     (4) any Investment made as a result of the receipt of non-cash consideration from:

     (a) an Asset Sale that was made pursuant to and in compliance with Section 4.10
hereof; or

     (b) pursuant to clause (7) of the items deemed not to be Asset Sales under the
definition of “Asset Sale;”

     (5) any Investment in any Person solely in exchange for the issuance of Equity
Interests (other than Disqualified Equity) of Regency Energy Partners;

     (6) any Investments received in compromise or resolution of (A) obligations of trade
creditors or customers that were incurred in the ordinary course of business of Regency
Energy Partners or any of its Restricted Subsidiaries, including pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of any trade
creditor or customer, or as a result of a foreclosure by Regency Energy Partners or any of
its Restricted Subsidiaries with respect to any secured Investment in default; or (B)
litigation, arbitration or other disputes with Persons who are not Affiliates;

     (7) Investments represented by Hedging Obligations permitted to be incurred;

     (8) loans or advances to employees made in the ordinary course of business of Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners in an aggregate
principal amount not to exceed $1.0 million at any one time outstanding;

     (9) repurchases of the Notes;

     (10) any Investments in prepaid expenses, negotiable instruments held for collection
and lease, utility, workers’ compensation and performance and other similar deposits and
prepaid expenses made in the ordinary course of business;

     (11) Permitted Business Investments; and

     (12) other Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this clause (12)
that are at the time outstanding not to exceed the greater of (a) $25.0 million and (b) 2.5%
of Regency Energy Partners’ Consolidated Net Tangible Assets.

          
“Permitted Liens” means:

     (1) Liens securing any Indebtedness under any of the Credit Facilities and all
Obligations and Hedging Obligations relating to such Indebtedness;

     (2) Liens in favor of Regency Energy Partners or the Guarantors;

     (3) Liens on property of a Person existing at the time such Person is merged with or
into or consolidated with Regency Energy Partners or any Subsidiary of Regency Energy
Partners; provided that such Liens were in existence prior to such merger or consolidation
and do not extend to any assets other than those of the Person merged into or consolidated
with Regency Energy Partners or the Subsidiary;

-17-

 

     (4) Liens on property existing at the time of acquisition of the property by Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners; provided that such
Liens were in existence prior to, such acquisition, and not incurred in contemplation of,
such acquisition;

     (5) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (6) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
clause (4) of Section 4.09(b) hereof covering only the assets acquired with or financed by
such Indebtedness;

     (7) Liens existing on the date of this Indenture (other than Liens securing the Credit
Facilities);

     (8) Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);

     (9) Liens on any property or asset acquired, constructed or improved by Regency Energy
Partners or any of its Restricted Subsidiaries (a “Purchase Money Lien”), which (a) are in
favor of the seller of such property or assets, in favor of the Person developing,
constructing, repairing or improving such asset or property, or in favor of the Person that
provided the funding for the acquisition, development, construction, repair or improvement
cost, as the case may be, of such asset or property, (b) are created within 360 days after
the acquisition, development, construction, repair or improvement, (c) secure the purchase
price or development, construction, repair or improvement cost, as the case may be, of such
asset or property in an amount up to 100% of the Fair Market Value of such acquisition,
construction or improvement of such asset or property, and (d) are limited to the asset or
property so acquired, constructed or improved (including the proceeds thereof, accessions
thereto and upgrades thereof);

     (10) Liens on and pledges of the Equity Interests of any Unrestricted Subsidiary or any
Joint Venture owned by Regency Energy Partners or any Restricted Subsidiary of Regency
Energy Partners to the extent securing Non-Recourse Debt or other Indebtedness of such
Unrestricted Subsidiary or Joint Venture;

     (11) Liens in favor of collecting or payor banks having a right of setoff, revocation,
refund or chargeback with respect to money or instruments of Regency Energy Partners or any
of its Restricted Subsidiaries on deposit with or in possession of such bank;

     (12) Liens to secure performance of Hedging Obligations of Regency Energy Partners or
any of its Restricted Subsidiaries;

     (13) Liens arising under construction contracts, interconnection agreements, operating
agreements, joint venture agreements, partnership agreements, oil and gas leases, farmout
agreements, division orders, contracts for purchase, gathering, processing, sale,
transportation or exchange of crude oil, natural gas liquids, condensate and natural gas,
natural gas storage agreements, unitization and pooling declarations and agreements, area of
mutual interest agreements, real property leases and other agreements arising in the
ordinary course of business of Regency Energy Partners and its Restricted Subsidiaries that
are customary in the Permitted Business;

-18-

 

     (14) Liens upon specific items of inventory, receivables or other goods or proceeds of
Regency Energy Partners or any of its Restricted Subsidiaries securing such Person’s
obligations in respect of bankers’ acceptances or receivables securitizations issued or
created for the account of such Person to facilitate the purchase, shipment or storage of
such inventory, receivables or other goods or proceeds and permitted by Section 4.09;

     (15) Liens securing any Indebtedness equally and ratably with all Obligations due under
the Notes or any Note Guarantee pursuant to a contractual covenant that limits Liens in a
manner substantially similar to Section 4.12;

     (16) Liens incurred in the ordinary course of business of Regency Energy Partners or
any Restricted Subsidiary of Regency Energy Partners; provided, however, that, after giving
effect to any such incurrence, the aggregate principal amount of all Indebtedness then
outstanding and secured by any Liens pursuant to this clause (16) dates not exceed 5.0% of
Regency Energy Partners’ Consolidated Net Tangible Assets at such time; and

     (17) any Lien renewing, extending, refinancing or refunding a Lien permitted by clauses
(1) through (16) above; provided that (a) the principal amount of Indebtedness secured by
such Lien does not exceed the principal amount of such Indebtedness outstanding immediately
prior to the renewal, extension, refinance or refund of such Lien, plus all accrued interest
on the Indebtedness secured thereby and the amount of all fees, expenses and premiums
incurred in connection therewith, and (b) no assets encumbered by any such Lien other than
the assets permitted to be encumbered immediately prior to such renewal, extension,
refinance or refund are encumbered thereby.

          
After termination of the covenants referred to in Section 4.20, for purposes of complying with
Section 4.12, the Liens described in clauses (1) and (16) of this definition of “Permitted Liens”
will be Permitted Liens only to the extent those Liens secure Indebtedness not exceeding, at the
time of determination, 10% of the Consolidated Net Tangible Assets of Regency Energy Partners.
Once effective, this 10% limitation on Permitted Liens will continue to apply during any later
period in which the Notes do not have an Investment Grade Rating by both Rating Agencies.

          
“Permitted Refinancing Indebtedness” means any Indebtedness of Regency Energy Partners or any
of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
renew, refund, refinance, replace, defense or discharge other Indebtedness of Regency Energy
Partners or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided
that:

     (1) the principal amount of such Permitted Refinancing Indebtedness does not exceed the
principal amount of the Indebtedness renewed, refunded, refinanced, replaced, defeased or
discharged (plus all accrued interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has a final maturity date no earlier than
the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater
than the Weighted Average Life to Maturity of, the Indebtedness being renewed, refunded,
refinanced, replaced, defamed or discharged;

     (3) if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged is subordinated in right of payment to the Notes or the Note Guarantees, such
Permitted Refinancing Indebtedness is subordinated in right of payment to, the Notes or the
Note Guarantees, on terms at least as favorable to the Holders of Notes as those contained
in the documenta-

-19-

 

tion governing the Indebtedness being renewed, refunded, refinanced, replaced, defeased
or discharged; and

     (4) such Indebtedness is incurred either by Regency Energy Partners or by the
Restricted Subsidiary that is the obligor on or guarantor of the Indebtedness being renewed,
refunded, refinanced, replaced, defeased or discharged.

          
“Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

          
“Private Placement Legend” means the legend set forth in Section 2.06(g)(1)(A) hereof to be
placed on all Notes issued under this Indenture except where otherwise permitted by the provisions
of this Indenture.

          
“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          
“Qualified Owner” means Hicks, Muse, Tate & Furst Equity Fund V, LP and its Affiliates that
are organized by such Person (or any Person controlling such Person) primarily for making, or
otherwise having as their primary activity holding or exercising control over, equity or debt
investments in Regency GP LLC or other portfolio companies.

          
“Rating Agencies” means Moody’s and S&P.

          
“Ratings Categories” means:

     (1) with respect to S&P, any of the following categories: AAA, AA, A, BBB, BB, B, CCC,
CC, C and D (or equivalent successor categories); and

     (2) with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa, Ba, B,
Caa, Ca, C and D (or equivalent successor categories).

          
“Ratings Decline” means a decrease in the rating of the Notes by either Moody’s or S&P by one
or more gradations (including gradations within Rating Categories as well as between Rating
Categories). In determining whether the rating of the Notes has decreased by one or more
gradations, gradations within Ratings Categories, namely + or — for S&P, and 1, 2, and 3 for
Moody’s, will be taken into account; for example, in the case of S&P, a ratings decline either from
BB+ to BB or BB to B- will constitute a decrease of one gradation.

          
“Reporting Default” means a Default described in clause (4) under Section 6.01.

          
“Registration Rights Agreement” means (i) with respect to the Initial Notes, the Registration
Rights Agreement, dated as of December 12, 2006, among the Issuers, the Guarantors and the other
parties named on the signature pages thereof, and (ii) with respect to any Additional Notes, the
comparable agreement, in each case as such agreement may be amended, modified or supplemented from
time to time.

          
“Regulation S” means Regulation S promulgated under the Securities Act.

          
“Regulation S Global Note” means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf

-20-

 

of and registered in the name of the Depositary or its nominee, issued in a denomination equal
to the outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.

          
“Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

          
“Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

          
“Restricted Global Note” means a Global Note bearing the Private Placement Legend.

          
“Restricted Investment” means an Investment other than a Permitted Investment.

          
“Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary. Notwithstanding anything in this Indenture to the contrary, Finance Corp.
shall be a Restricted Subsidiary of Regency Energy Partners.

          
“Rule 144” means Rule 144 promulgated under the Securities Act.

          
“Rule 144A” means Rule 144A promulgated under the Securities Act.

          
“Rule 903” means Rule 903 promulgated under the Securities Act.

          
“Rule 904” means Rule 904 promulgated under the Securities Act.

          
“S&P” means Standards & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc.,
or any successor to the rating agency business thereof.

          
“SEC” means the Securities and Exchange Commission.

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

          
“Senior Indebtedness” means with respect to any Person, Indebtedness of such Person, unless
the instrument creating or evidencing such Indebtedness provides that such Indebtedness is
subordinate in right of payment to the Notes or the Note Guarantee of such Person, as the case may
be.

          
“Shelf Registration Statement” means a registration statement effecting a Shelf Registration
as defined in the initial Registration Rights Agreement.

          
“Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date of this Indenture.

          
“Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which the payment of interest or principal was scheduled to be
paid in the original documentation governing such Indebtedness, and will not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

-21-

 

          
“Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity (other than a partnership or
limited liability company) of which more than 50% of the total voting power of the Voting
Stock is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person (or a combination thereof); and

     (2) any partnership (whether general or limited) or limited liability company (a) the
sole general partner or member of which is such Person or a Subsidiary of such Person, or
(b) if there is more than a single general partner or member, either (x) the only managing
general partners or managing members of which are such Person or one or more Subsidiaries of
such Person (or any combination thereof) or (y) such Person owns or controls, directly or
indirectly, a majority of the outstanding general partner interests, member interests or
other Voting Stock of such partnership or limited liability company, respectively.

          
“TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

          
“Treasury Rate” means, with respect to any Redemption Date, the yield to maturity at the time
of computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to December 15, 2010; provided, however, that if such
period is not equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, Regency Energy Partners shall obtain the Treasury Rate by linear
interpolation (calculated to the nearest one twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
the Redemption Date to December 15, 2010, is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year will
be used. Regency Energy Partners will (a) calculate the Treasury Rate on the second Business Day
preceding the applicable Redemption Date and (b) prior to such Redemption Date file with the
Trustee an Officers’ Certificate setting forth the Applicable Premium and the Treasury Rate and
showing the calculation of each in reasonable detail.

          
“Trustee” means Wells Fargo Bank, National Association, until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

          
“Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required
to bear the Private Placement Legend

          
“Unrestricted Global Note” means a Global Note that does not bear and is not required to bear
the Private Placement Legend.

          
“Unrestricted Subsidiary” means any Subsidiary of Regency Energy Partners (other than Finance
Corp. or any successor to it) that is designated by the Board of Directors of the General Partner
as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but only to the
extent that such Subsidiary:

     (1) except to the extent permitted by subclause (2)(b) of the definition of “Permitted
Business Investments,” has no Indebtedness other than Non-Recourse Debt;

-22-

 

     (2) except as permitted under clause (4) of Section 4.11 hereof, is not party to any
agreement, contract, arrangement or understanding with Regency Energy Partners or any
Restricted Subsidiary of Regency Energy Partners unless the terms of any such agreement,
contract, arrangement or understanding are no less favorable to Regency Energy Partners or
such Restricted Subsidiary than those that might be obtained at the time from Persons who
are not Affiliates of Regency Energy Partners;

     (3) is a Person with respect to which neither Regency Energy Partners nor any of its
Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s financial condition
or to cause such Person to achieve any specified levels of operating results; and

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of Regency Energy Partners or any of its Restricted Subsidiaries.

          
All Subsidiaries of an Unrestricted Subsidiary shall be also Unrestricted Subsidiaries.

          
“U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

          
“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled (without regard to the occurrence of any contingency) to vote in the
election of the Board of Directors of such Person.

          
“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

Section 1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Affiliate Transaction”
	 	 	4.11	 
	“Asset Sale Offer”
	 	 	3.09	 
	“Authentication Order”
	 	 	2.02	 
	“Change of Control Offer”
	 	 	4.15	 
	“Change of Control Payment”
	 	 	4.15	 
	“Change of Control Payment Date”
	 	 	4.15	 
	“Covenant Defeasance”
	 	 	8.03	 
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.10	 
	“Incremental Funds”
	 	 	4.07	 
	“incur”
	 	 	4.09	 

-23-

 

	 	 	 	 	 
	Term	 	Defined in Section
	“Legal Defeasance”
	 	 	8.02	 
	“Offer Amount”
	 	 	3.09	 
	“Offer Period”
	 	 	3.09	 
	“Paying Agent”
	 	 	2.03	 
	“Permitted Debt”
	 	 	4.09	 
	“Payment Default”
	 	 	6.01	 
	“Purchase Date”
	 	 	3.09	 
	“Redemption Date”
	 	 	3.07	 
	“Registrar”
	 	 	2.03	 
	“Restricted Payments”
	 	 	4.07	 

Section 1.03 Incorporation by Reference of Trust Indenture Act.

          
Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

          
The following TIA terms used in this Indenture have the following meanings:

          “indenture securities“ means the Notes and the Note Guarantees;

          “indenture security holder” means a Holder of a Note;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

          
“obligor” on the Notes and the Note Guarantees means the Issuers and the Guarantors,
respectively, and any successor obligor upon the Notes and the Note Guarantees,
respectively.

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

Section 1.04 Rules of Construction.

          
Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

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

     (5) “will” shall be interpreted to express a command;

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

-24-

 

     (7) references to sections of or rules under the Securities Act or Exchange Act will be
deemed to include substitute, replacement of successor sections or rules adopted by the SEC
from time to time.

ARTICLE 2

THE NOTES

Section 2.01 Form and Dating.

          
(a) General. The Notes and the Trustee’s certificate of authentication will be substantially
in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by
law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The
Notes shall be in denominations of $1,000 and integral multiples thereof.

          
The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Issuers, the Guarantor and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

          
(b) Global Notes. Notes issued in global form will be substantially in the form of Exhibit A
hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the
Global Note” attached thereto). Notes issued in definitive form will be substantially in the form
of Exhibit A hereto (but without the Global Note Legend thereon and without the “Schedule of
Exchanges of Interests in the Global Note” attached thereto). Each Global Note will represent such
of the outstanding Notes as will be specified therein and each shall provide that it represents the
aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a
Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the
direction of the Trustee, in accordance with instructions given by the Holder thereof as required
by Section 2.06 hereof.

Section 2.02 Execution and Authentication.

          
At least one Officer must sign the Notes for each of the Issuers by manual or facsimile
signature.

          
If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

          
A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Indenture.

          
The Trustee will, upon receipt of a written order of the Issuers signed by two Officers of
each Issuer (an “Authentication Order”), authenticate Notes for original issue that may be validly
issued under this Indenture, including any Additional Notes and Exchange Notes. The aggregate
principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of
Notes authorized for issuance by the Issuers pursuant to one or more Authentication Orders, except
as provided in Section 2.07 hereof.

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The Trustee may appoint an authenticating agent acceptable to the Issuers to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Issuers.

Section 2.03 Registrar and Paying Agent.

          
The Issuers will maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for
payment (“Paying Agent”). The Registrar will keep a register of the Notes and of their transfer
and exchange. The Issuers may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any
additional paying agent. The Issuers may change any Paying Agent or Registrar without notice to
any Holder. The Issuers will notify the Trustee in writing of the name and address of any Agent
not a party to this Indenture. If the Issuers fail to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. Regency Energy Partners, Finance Corp.
or any of Regency Energy Partners’ other Subsidiaries may act as Paying Agent or Registrar.

          
The Issuers initially appoint The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

          
The Issuers initially appoint the Trustee to act as the Registrar and Paying Agent and to act
as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

          
The Issuers will require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal, premium or Liquidated Damages, if any, or interest on
the Notes, and will notify the Trustee of any default by the Issuers in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay all money held by
it to the Trustee, The Issuers at any time may require a Paying Agent to pay all money held by it
to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than Regency Energy
Partners or a Subsidiary) will have no further liability for the money. If Regency Energy Partners
or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to Regency Energy Partners, the Trustee will serve as Paying Agent for the
Notes.

Section 2.05 Holder Lists.

          
The Trustee will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Issuers will furnish to the Trustee at least
seven Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Notes and the Issuers shall otherwise comply with TIA
§ 312(a).

Section 2.06 Transfer and Exchange.

          
(a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a
whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the

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Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be
exchanged by the Issuers for Definitive Notes if:

     (1) the Issuers deliver to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Issuers within 120 days after the date of such notice from the Depositary;

     (2) the Issuers in their sole discretion determine that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and deliver a written notice to such
effect to the Trustee; or

     (3) there has occurred and is continuing a Default or Event of Default with respect to
the Notes and the Depositary notifies the Trustee of its decision to exchange the Global
Notes for Definitive Notes.

          
Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes
shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may
be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.06 or Sections 2.07 or 2.10 hereof, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a), however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

          
(b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also will require compliance with either subparagraph (1) or (2)
below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend. Beneficial interests in
any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note. No written orders or
instructions shall be required to be delivered to the Registrar to effect the transfers
described in this Section 2.06(b)(1).

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

     (A) both:

     (i) a written order from a participant or an indirect participant in
the Depositary given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a
beneficial interest in

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another Global Note in an amount equal to the beneficial interest to be
transferred or exchanged; and

     (ii) instructions given in accordance with the Applicable Procedures
containing information regarding the participant account to be credited with
such increase; or

     (B) both:

     (i) a written order from a participant or an indirect participant in
the Depositary given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note
in an amount equal to the beneficial interest to be transferred or
exchanged; and

     (ii) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in (i) above.

Upon consummation of an Exchange Offer by the Issuers in accordance with Section 2.06(f)
hereof, the requirements of this Section 2.06(b)(2) shall be deemed to have been satisfied
upon receipt by the Registrar of the instructions contained in the Letter of Transmittal
delivered by the Holder of such beneficial interests in the Restricted Global Notes. Upon
satisfaction of all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(h) hereof.

     (3) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes delivery
thereof in the form of a beneficial interest in another Restricted Global Note if the
transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar
receives the following:

     (A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof;

     (B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (2) thereof.

     (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.06(b)(2) above and:

     (A) such exchange or transfer is effected pursuant to an Exchange Offer in
accordance with the related Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (i) a Broker-Dealer,

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(ii) a Person participating in the distribution of the Exchange Notes or (iii)
a Person who is an affiliate (as defined in Rule 144) of the Issuers;

     (B) such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the related Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to an Exchange Offer
Registration Statement in accordance with the related Registration Rights Agreement;
or

     (D) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a beneficial interest
in an Unrestricted Global Note, a certificate from such holder in the form
of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

     (ii) if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

          
If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an
Unrestricted Global Note has not yet been issued, the Issuers shall issue and, upon receipt of a
Company Order the Trustee shall authenticate, one or more Unrestricted Global Notes in an aggregate
principal amount equal to the aggregate principal amount of beneficial interests transferred
pursuant to subparagraph (B) or (D) above.

          
Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

          
(c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

          
(1) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If any
holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial
interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who
takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the
Registrar of the following documentation:

     (A) if the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note, a certificate from such
holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof;

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     (B) if such beneficial interest is being transferred to a QIB in accordance with Rule
144A, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (1) thereof;

     (C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (2) thereof;

     (D) if such beneficial interest is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144, a certificate
to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a)
thereof;

     (E) if such beneficial interest is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the Securities
Act other than those listed in subparagraphs (B) through (D) above, a certificate to the
effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion
of Counsel required by item (3) thereof, if applicable;

     (F) if such beneficial interest is being transferred to Regency Energy Partners or any
of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(b) thereof; or

     (G) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Issuers shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of such beneficial interest
shall instruct the Registrar through instructions from the Depository. The Trustee shall deliver
such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this
Section 2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions
on transfer contained therein.

          
(2) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes. A
holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest
for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Note only if:

     (A) such exchange or transfer is effected pursuant to an Exchange Offer in accordance
with the related Registration Rights Agreement and the holder of such beneficial interest,
in the case of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
participating in the distribution of the Exchange Notes or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Issuers;

     (B) such transfer is effected pursuant to a Shelf Registration Statement in accordance
with the related Registration Rights Agreement;

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     (C) such transfer is effected by a Broker-Dealer pursuant to an Exchange Offer
Registration Statement in accordance with the related Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (l)(b) thereof; or

     (ii) if the holder of such beneficial interest in a Restricted Global Note
proposes to transfer such beneficial interest to a Person who shall take delivery
thereof in the form of an Unrestricted Definitive Note, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item (4)
thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act.

          
(3) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. If
any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such
beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who
takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions
set forth in Section 2.06(b)(2) hereof, the Trustee will cause the aggregate principal amount of
the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Issuers will execute and the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will be registered in such
name or names and in such authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons
in whose names such Notes are so registered. Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c)(3) will not bear the Private Placement Legend.

          
(d) Transfer and Exchange of Definitive Notes for Beneficial Interests. Definitive Notes may
not be exchanged for beneficial interests in a Global Note.

          
(e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the
Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder must present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in
writing. In addition, the requesting Holder must provide any additional certifications, documents
and information, as applicable, required pursuant to the following provisions of this Section
2.06(e).

          
(1) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted Definitive
Note may be transferred to and registered in the name of Persons who take delivery thereof in the
form of a Restricted Definitive Note if the Registrar receives the following:

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     (A) if the transfer will be made pursuant to Rule 144A, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the certifications in item
(1) thereof;

     (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the certifications in
item (2) thereof; and

     (C) if the transfer will be made pursuant to any other exemption from the registration
requirements of the Securities Act, then the transferor must deliver a certificate in the
form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.

          
(2) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted Definitive
Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a
Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if:

     (A) such exchange or transfer is effected pursuant to an Exchange Offer in accordance
with the related Registration Rights Agreement and the Holder, in the case of an exchange,
or the transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the
distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule
144) of the Issuers;

     (B) any such transfer is effected pursuant to a Shelf Registration Statement in
accordance with the related Registration Rights Agreement;

     (C) any such transfer is effected by a Broker-Dealer pursuant to an Exchange Offer
Registration Statement in accordance with the related Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (i) if the Holder of such Restricted Definitive Notes proposes to exchange such
Notes for an Unrestricted Definitive Note, a certificate from such Holder in the
form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or

     (ii) if the Holder of such Restricted Definitive Notes proposes to transfer
such Notes to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit
B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an Opinion
of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required in order to maintain compliance
with the Securities Act.

          
(3) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of Unrestricted
Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the Registrar
shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

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(f) Exchange Offer. Upon the occurrence of an Exchange Offer in accordance with the related
Registration Rights Agreement, the Issuers will issue and, upon receipt of an Authentication Order
in accordance with Section 2.02 hereof, the Trustee will authenticate:

     (1) one or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes accepted for
exchange in the Exchange Offer by Persons that certify in the applicable Letters of
Transmittal that (A) they are not Broker-Dealers, (B) they are not participating in a
distribution of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
of the Issuers; and

     (2) Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange
Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not
Broker-Dealers, (B) they are not participating in a distribution of the Exchange Notes and
(C) they are not affiliates (as defined in Rule 144) of the Issuers.

          
Concurrently with the issuance of such Notes, the Trustee will cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and the Issuers will
execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of
Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate principal amount.

          
(g) Legends. The following legends will appear on the face of all Global Notes and Definitive
Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions
of this Indenture.

          
(1) Private Placement Legend.

          
(A) Except as permitted by subparagraph (B) below, each Global Note and each Definitive Note
(and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in
substantially the following form:

“THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED, AND THE NOTE EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THE NOTE EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE
SECURITIES ACT. THE HOLDER OF THE NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT OF
THE ISSUERS THAT (A) SUCH NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (l)(A) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT),
PURCHASING FOR ITS OWN ACCOUNT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A UNDER THE SECURITIES ACT, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144 OF THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (D) TO AN “AC-

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CREDITED INVESTOR” WITHIN THE MEANING OF RULE 50l(A)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) THAT IS PURCHASING AT LEAST
$250,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AN INSTITUTIONAL
ACCREDITED INVESTOR OR (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; PROVIDED THAT IN THE CASE OF A
TRANSFER UNDER CLAUSE (E) SUCH TRANSFER IS SUBJECT TO THE RECEIPT BY THE TRUSTEE OF
A CERTIFICATION OF THE TRANSFEROR AND AN OPINION OF COUNSEL TO THE EFFECT THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (2) TO THE ISSUERS OR THEIR
RESPECTIVE SUBSIDIARIES OR (3) UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND THE
INDENTURE GOVERNING THE NOTES AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE. IF ANY RESALE OR OTHER TRANSFER OF ANY NOTE IS
PROPOSED TO BE MADE UNDER CLAUSE (A)(1)(D) ABOVE WHILE THESE TRANSFER RESTRICTIONS
ARE IN FORCE THEN THE TRANSFEROR SHALL DELIVER A LETTER FROM THE TRANSFEREE TO THE
TRUSTEE WHICH SHALL PROVIDE, AMONG OTHER THINGS, THAT THE TRANSFEREE IS AN
INSTITUTIONAL ACCREDITED INVESTOR AND THAT IT IS ACQUIRING THE SECURITIES FOR
INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT.”

          
(B) Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or (f) of this Section 2.06
(and all Notes issued in exchange therefor or substitution thereof) will not bear the Private
Placement Legend.

          
(2) Global Note Legend. Each Global Note will bear a legend in substantially the following
form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
(1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH
THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE

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TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

          
(h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note will be
increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

          
(i) General Provisions Relating to Transfers and Exchanges.

          
(1) To permit registrations of transfers and exchanges, the Issuers will execute and the
Trustee will authenticate Global Notes and Definitive Notes upon receipt of a Company Order or at
the Registrar’s request.

          
(2) No service charge will be made to a Holder of a beneficial interest in a Global Note or to
a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuers may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar governmental charge
payable upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05
hereof).

          
(3) [Reserved.]

          
(4) All Global Notes and Definitive Notes issued upon any registration of transfer or exchange
of Global Notes or Definitive Notes will be the valid obligations of the Issuers, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the Global Notes or
Definitive Notes surrendered upon such registration of transfer or exchange.

          
(5) Neither the Registrar nor the Issuers will be required:

     (A) to issue, to register the transfer of or to exchange, any Notes during a period
beginning at the opening of business 15 days before the day of any selection of Notes for
redemption under Section 3.02 hereof and ending at the close of business on the day of
selection;

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     (B) to register the transfer of or to exchange any Note selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in part; or

     (C) to register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

          
(6) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuers may deem and treat the Person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of principal of and interest on
such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuers shall be
affected by notice to the contrary.

          
(7) The Trustee will authenticate Global Notes and Definitive Notes for original issue in
accordance with the provisions of Section 2.02 hereof.

          
(8) All certifications, certificates and Opinions of Counsel required to be submitted to the
Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be
submitted by facsimile.

Section 2.07 Replacement Notes.

          
If any mutilated Note is surrendered to the Trustee or the Issuers and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Issuers will issue
and the Trustee, upon receipt of a Company Order, will authenticate a replacement Note if the
Trustee’s requirements are met. If required by the Trustee or the Issuers, an indemnity bond must
be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuers to
protect the Issuers, the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced. The Issuers and the Trustee may charge for their expenses
in replacing a Note.

          
Every replacement Note is an additional obligation of each of the Issuers and will be entitled
to all of the benefits of this Indenture equally and proportionately with all other Notes duly
issued hereunder.

Section 2.08 Outstanding Notes.

          
The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does
not cease to be outstanding because the Issuers or an Affiliate of the Issuers holds the Note;
however, Notes held by Regency Energy Partners or a Subsidiary of Regency Energy Partners shall not
be deemed to be outstanding for purposes of Section 3.07(a) hereof.

          
If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser.

          
If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest and Liquidated Damages, if any, on it cease to accrue.

          
If the Paying Agent (other than Regency Energy Partners, a Subsidiary or an Affiliate of any
thereof) holds as of 11:00 a.m. Eastern Time, on a Redemption Date or other maturity date, money

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sufficient to pay Notes payable on that date, then on and after that date such Notes will be
deemed to be no longer outstanding and will cease to accrue interest and Liquidated Damages, if
any.

Section 2.09 Treasury Notes.

          
In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Issuers or any Guarantor, or by any Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Issuers or any Guarantor, will be considered as though not outstanding, except that for the
purposes of determining whether the Trustee will be protected in relying on any such direction,
waiver or consent, only Notes that the Trustee knows are so owned will be so disregarded.

Section 2.10 Temporary Notes.

          
Until certificates representing Notes are ready for delivery, the Issuers may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate temporary Notes. Temporary
Notes will be substantially in the form of certificated Notes but may have variations that the
Issuers consider appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee. Without unreasonable delay, the Issuers will prepare and the Trustee will authenticate
definitive Notes in exchange for temporary Notes.

          
Holders of temporary Notes will be entitled to all of the benefits of this Indenture.

Section 2.11 Cancellation.

          
The Issuers at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent will forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled
Notes (subject to the record retention requirement of the Exchange Act). Certification of the
destruction of all canceled Notes will be delivered to the Issuers. The Issuers may not issue new
Notes to replace Notes that they have paid or that have been delivered to the Trustee for
cancellation.

Section 2.12 Defaulted Interest.

          
If the Issuers default in a payment of interest on the Notes, they will pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01 hereof. The Issuers will notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and the date of the
proposed payment. The Issuers will fix or cause to be fixed each such special record date and
payment date; provided that no such special record date may be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the special record date,
the Issuers (or, upon the written request of the Issuers, the Trustee in the name and at the
expense of the Issuers) will mail or cause to be mailed to Holders a notice that states the special
record date, the related payment date and the amount of such interest to be paid.

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ARTICLE 3

REDEMPTION AND REPURCHASE

Section 3.01 Notices to Trustee.

          
If the Issuers elect to redeem Notes pursuant to the optional redemption provisions of Section
3.07 hereof, Regency Energy Partners must furnish to the Trustee, at least five Business Days
before the giving of the notice of redemption pursuant to Section 3.03, an Officers’ Certificate
setting forth:

     (1) the clause of this Indenture pursuant to which the redemption shall occur,

     (2) the Redemption Date;

     (3) the principal amount of Notes to be redeemed; and

     (4) the redemption price, if then determinable and, if not, then a method for
determination.

Section 3.02 Selection of Notes to Be Redeemed.

          
If less than all of the Notes are to be redeemed at any time, the Trustee will select Notes
for redemption as follows:

     (1) if the Notes are listed on any national securities exchange, in compliance with the
requirements of the principal national securities exchange on which the Notes are listed; or

     (2) if the Notes are not listed on any national securities exchange, on a pro rata
basis, by lot or by such other method as the Trustee shall deem fair and appropriate.

          
No Notes of $1,000 or less can be redeemed in part.

Section 3.03 Notice of Redemption.

          
Subject to the provisions of Section 3.09 hereof, at least 30 days but not more than 60 days
before a Redemption Date, the Issuers will mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a Redemption Date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of
this Indenture pursuant to Articles 8 or 11 hereof.

          
The notice will identify the Notes to be redeemed and will state:

     (1) the Redemption Date;

     (2) the redemption price, if then determinable, and, if not, then a method for
determination;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date upon surrender of such Note, a new

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Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

     (6) that, unless the Issuers default in making such redemption payment, interest and
Liquidated Damages, if any, on Notes called for redemption ceases to accrue on and after the
Redemption Date;

     (7) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

          
At the Issuers’ request, the Trustee will give the notice of redemption in the Issuers’ names
and at their expense; provided, however, that the Issuers have delivered to the Trustee, at least
five Business Days prior to the date of giving such notice, an Officers’ Certificate requesting
that the Trustee give such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph. Such Officers’ Certificate may be combined with the Officers’
Certificate referred to in Section 3.01.

Section 3.04 Effect of Notice of Redemption.

          
Once notice of redemption is delivered in accordance with Section 3.03 hereof, Notes called
for redemption become irrevocably due and payable on the redemption date at the redemption price.
A notice of redemption may not be conditional.

Section 3.05 Deposit of Redemption or Purchase Price.

          
By 11:00 a.m. Eastern Time on the redemption or purchase date, the Issuers will deposit with
the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of
and accrued interest and Liquidated Damages, if any, on all Notes to be redeemed or purchased on
that date. The Trustee or the Paying Agent will promptly return to the Issuers any money deposited
with the Trustee or the Paying Agent by the Issuers in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest and Liquidated Damages, if any, on, all Notes
to be redeemed or purchased.

          
If the Issuers comply with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest and Liquidated Damages, if any, will cease to accrue on the
Notes or the portions of Notes called for redemption or surrendered for purchase. If a Note is
redeemed or purchased on or after an interest record date but on or prior to the related interest
payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such
Note was registered at the close of business on such record date. If any Note called for
redemption or surrendered for purchase is not so paid upon surrender for redemption or purchase
because of the failure of the Issuers to comply with the preceding paragraph, interest shall be
paid on the unpaid principal, from the redemption or purchase date until such principal is paid,
and to the extent lawful on any interest not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01 hereof.

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Section 3.06 Notes Redeemed or Purchased in Part.

          
Upon surrender of a Note that is redeemed or purchased in part, the Issuers will issue and,
upon receipt of a Company Order, the Trustee will authenticate for the Holder at the expense of the
Issuers a new Note equal in principal amount to the unredeemed or unpurchased portion of the Note
surrendered.

Section 3.07 Optional Redemption.

          
(a) At any time prior to December 15, 2009, the Issuers may on any one or more occasions
redeem up to 35% of the aggregate principal amount of Notes (including any Additional Notes) issued
under this Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price of
108 3/8% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages,
if any, to the Redemption Date (subject to the right of Holders of record on the relevant record
date to receive interest due on an interest payment date that is on or prior to the Redemption
Date), with the net cash proceeds of one or more Equity Offerings by Regency Energy Partners;
provided that:

     (1) at least 65% of the aggregate principal amount of Notes (including any Additional
Notes) issued under this Indenture (excluding Notes held by Regency Energy Partners and its
Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and

     (2) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

          
(b) Except pursuant to the preceding paragraph and paragraph (d) of this Section 3.07, the
Notes will not be redeemable at the Issuers’ option prior to December 15, 2010.

          
(c) On or after December 15, 2010, the Issuers may redeem all or a part of the Notes upon not
less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any,
on the Notes redeemed to the applicable Redemption Date, if redeemed during the twelve-month period
beginning on December 15 of each year indicated below, subject to the rights of Holders of Notes on
the relevant record date to receive interest on an interest payment date that is on or prior to the
Redemption Date:

	 	 	 	 	 
	Year	 	Percentage
	 
	 	 	 	 
	2010
	 	 	104.188	%
	2011
	 	 	102.094	%
	2012 and thereafter
	 	 	100.000	%

          
Unless the Issuers default in the payment of the redemption price, interest and Liquidated
Damages, if any, will cease to accrue on the Notes or portions thereof called for redemption on the
applicable Redemption Date.

          
(d) At any time prior to December 15, 2010, the Issuers may also redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to
100% of the principal amount of Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest and Liquidated Damages, if any, to the date of redemption (the “Redemption Date”),
subject to the rights of Holders on the relevant record date to receive interest due on an interest
payment date that is on or prior to the Redemption Date.

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(e) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

Section 3.08 [Reserved].

Section 3.09 Offer to Purchase by Application of Excess Proceeds.

          
In the event that, pursuant to Section 4.10 hereof, the Regency Energy Partners are required
to commence an offer to all Holders to purchase Notes (an “Asset Sale Offer”), it will follow the
procedures specified below.

          
The Asset Sale Offer shall be made to all Holders and all holders of other Indebtedness that
is pari passu with the Notes containing provisions similar to those set forth in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of assets. The Asset Sale
Offer will remain open for a period of at least 20 Business Days following its commencement and not
more than 30 Business Days, except to the extent that a longer period is required by applicable law
(the “Offer Period”). No later than three Business Days after the termination of the Offer Period
(the “Purchase Date”), the Issuers will apply all Excess Proceeds (the “Offer Amount”) to the
purchase of Notes and such other pari passu Indebtedness (on a pro rata basis, if applicable) or,
if less than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the manner
prescribed in the Notes.

          
If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Liquidated Damages, if any, will be paid
to the Person in whose name a Note is registered at the close of business on such record date, and
no additional interest or Liquidated Damages will be payable to Holders who tender Notes pursuant
to the Asset Sale Offer.

          
Upon the commencement of an Asset Sale Offer, the Issuers will send, by first class mail, a
notice to the Trustee and each of the Holders. The notice will contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The
notice, which will govern the terms of the Asset Sale Offer, will state:

     (1) that the Asset Sale Offer is being made pursuant to this Section 3.09 and Section
4.10 hereof and the length of time the Asset Sale Offer will remain open;

     (2) the Offer Amount, the purchase price and the Purchase Date;

     (3) that any Note not tendered or accepted for payment will continue to accrue interest
and Liquidated Damages, if any;

     (4) that, unless the Issuers default in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer will cease to accrue interest and Liquidate
Damages, if any, after the Purchase Date;

     (5) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in integral multiples of $1,000 only;

     (6) that Holders electing to have Notes purchased pursuant to any Asset Sale Offer will
be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the
Issuers, a de-

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positary, if appointed by the Issuers, or a Paying Agent at the address specified in
the notice at least three Business Days before the Purchase Date;

     (7) that Holders will be entitled to withdraw their election if the Issuers, the
depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased;

     (8) that, if the aggregate principal amount of Notes and other pari passu Indebtedness
surrendered by holders thereof exceeds the Offer Amount, the Issuers will select the Notes
and other pari passu Indebtedness to be purchased on a pro rata basis based on the principal
amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as
may be deemed appropriate by the Issuers so that only Notes in denominations of $1,000, or
integral multiples thereof, will be purchased); and

     (9) that Holders whose Notes were purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or transferred by
book-entry transfer).

          
On or before the Purchase Date, the Issuers will, to the extent lawful, accept for payment, on
a pro rata basis to the extent necessary, the Offer Amount allocable to the Notes or portions
thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount allocable to
the Notes has been tendered, all Notes tendered, and will deliver or cause to be delivered to the
Trustee the Notes properly accepted together with an Officers’ Certificate stating that such Notes
or portions thereof were accepted for payment by the Issuers in accordance with the terms of this
Section 3.09. The Issuers, the depositary or the Paying Agent, as the case may be, will promptly
(but in any case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Issuers for purchase, and the Issuers will promptly issue a new Note, and the
Trustee, upon receipt of a Company Order, will authenticate and mail or deliver (or cause to be
transferred by book entry) such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or
delivered by the Issuers to the Holder thereof. The Issuers will publicly announce the results of
the Asset Sale Offer on the Purchase Date.

          
Other than as specifically provided in this Section 3.09, any purchase pursuant to this
Section 3.09 shall be made pursuant to the provisions of Sections 3.05 and 3.06 hereof.

ARTICLE 4

COVENANTS

Section 4.01 Payment of Notes.

          
The Issuers shall pay or cause to be paid the principal of, premium, if any, and interest and
Liquidated Damages, if any, on, the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest and Liquidated Damages, if any will be considered paid on
the date due if the Paying Agent, if other than the Regency Energy Partners or a Subsidiary
thereof, holds as of 11:00 a.m. Eastern Time on the due date money deposited by the Issuers in
immediately available funds and designated for and sufficient to pay all principal, premium, if
any, and interest and Liquidated

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Damages, if any, then due. The Issuers will pay all Liquidated Damages, if any, in the same
manner as interest on the dates and in the amounts set forth in the applicable Registration Rights
Agreement.

          
The Issuers shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, at the then applicable interest rate on
the Notes to the extent lawful; they shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages
(without regard to any applicable grace period) at the same rate to the extent lawful.

          
The Issuers shall notify the Trustee of the amounts and payment dates of any Liquidated
Damages that may become payable under any Registration Rights Agreement.

Section 4.02 Maintenance of Office or Agency.

          
The Issuers shall maintain in the continental United States an office or agency (which may be
an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes may
be surrendered for registration of transfer or for exchange and where notices and demands to or
upon the Issuers in respect of the Notes and this Indenture may be served. The Issuers shall give
prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Issuers fail to maintain any such required office or agency
or fails to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

          
The Issuers may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission will in any
manner relieve the Issuers of their obligation to maintain an office or agency in the continental
United States for such purposes. The Issuers shall give prompt written notice to the Trustee of
any such designation or rescission and of any change in the location of any such other office or
agency.

          
The Issuers hereby designate the Corporate Trust Office of the Trustee as one such office or
agency of the Issuers in accordance with Section 2.03 hereof.

Section 4.03 Reports.

          
(a) Whether or not required by the rules and regulations of the SEC, so long as any Notes are
outstanding, Regency Energy Partners will furnish (whether through hard copy or internet access) to
the Holders of Notes or cause the Trustee to furnish to the Holders of Notes, within the time
periods specified in the SEC’s rules and regulations:

     (1) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if Regency Energy Partners were required to file such reports; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K if
Regency Energy Partners were required to file such reports.

          
All such reports will be prepared in all material respects in accordance with all of the rules
and regulations applicable to such reports, including Section 3-10 of Regulation S-X. Each annual
report on Form 10-K will include a report on Regency Energy Partners’ consolidated financial
statements by Regency Energy Partners’ independent registered public accounting firm. In addition,
Regency Energy Partners will file a copy of each of the reports referred to in clauses (1) and (2)
above with the SEC

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for public availability within the time periods specified in the rules and regulations
applicable to such reports (unless the SEC will not accept such a filing) and will post the reports
on its website within those time periods.

          
If, at any time Regency Energy Partners is no longer subject to the periodic reporting
requirements of the Exchange Act for any reason, Regency Energy Partners will nevertheless continue
filing the reports specified in the preceding paragraphs of this Section 4.03 with the SEC within
the time periods specified above unless the SEC will not accept such a filing; provided that, for
so long as Regency Energy Partners is not subject to the periodic reporting requirements of the
Exchange Act for any reason, the time period for filing reports on Form 8-K shall be 5 Business
Days after the event giving rise to the obligation to file such report. Regency Energy Partners
will not take any action for the purpose of causing the SEC not to accept any such filings. If,
notwithstanding the foregoing, the SEC will not accept Regency Energy Partners’ filings for any
reason, Regency Energy Partners will post the reports referred to in the preceding paragraphs on
its website within the time periods that would apply if Regency Energy Partners were required to
file those reports with the SEC.

          
(b) For so long as any Notes remain outstanding, if at any time they are not required to file
with the SEC the reports required by Section 4.03(a), Regency Energy Partners and the Guarantors
will furnish to the Holders of Notes and to securities analysts and prospective investors, upon
their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

Section 4.04 Compliance Certificate.

          
(a) The Issuers and each Guarantor (to the extent that such Guarantor is so required under the
TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’
Certificate stating that a review of the activities of the Issuers and Regency Energy Partners’
Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Issuers have kept, observed, performed and
fulfilled their obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Issuers have kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and are not in default
in the performance or observance of any of the terms, provisions and conditions of this Indenture
(or, if a Default or Event of Default has occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Issuers are taking or propose to
take with respect thereto).

          
(b) So long as any of the Notes are outstanding, the Issuers will deliver to the Trustee,
promptly upon any Officer becoming aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the Issuers are taking or
propose to take with respect thereto.

Section 4.05 Taxes.

          
The Issuers shall pay, and will cause each of Regency Energy Partners’ Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies except such as are
contested in good faith and by appropriate proceedings or where the failure to effect such payment
is not adverse in any material respect to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

          
The Issuers and each of the Guarantors covenant (to the extent that they may lawfully do so)
that they shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit

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or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Issuers and each of the Guarantors (to the extent that they may lawfully do so) hereby expressly
waive all benefit or advantage of any such law, and covenants that they will not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law has been enacted.

Section 4.07 Restricted Payments.

          
(a) Regency Energy Partners shall not, and will not permit any of its Restricted Subsidiaries
to, directly or indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on account of
its outstanding Equity Interests (including any payment in connection with any merger or
consolidation involving Regency Energy Partners or any of its Restricted Subsidiaries) or to
the direct or indirect holders of Regency Energy Partners’ or any of its Restricted
Subsidiaries’ Equity Interests in their capacity as such (other than distributions or
dividends payable in Equity Interests, excluding Disqualified Equity, of Regency Equity
Partners and other than distributions or dividends payable to Regency Energy Partners or a
Restricted Subsidiary);

     (2) purchase, redeem or otherwise acquire or retire for value (including in connection
with any merger or consolidation involving Regency Energy Partners) any Equity Interests of
Regency Energy Partners or any direct or indirect parent of Regency Energy Partners;

     (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness of Regency Energy Partners or any Guarantor
that is contractually subordinated to the Notes or to any Note Guarantee (excluding
intercompany Indebtedness between or among Regency Energy Partners and any of its Restricted
Subsidiaries), except a payment of interest or principal within one month of the Stated
Maturity thereof; or

     (4) make any Restricted Investment (all such payments and other actions set forth in
these clauses (1) through (4) above being collectively referred to as “Restricted
Payments”),

unless, at the time of and after giving effect to such Restricted Payment, no Default (except a
Reporting Default) or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment and either:

     (1) if the Fixed Charge Coverage Ratio for Regency Energy Partners’ most recently ended
four full fiscal quarters for which internal financial statements are available at the time
of such Restricted Payment is not less than 1.75 to 1.0, such Restricted Payment, together
with the aggregate amount of all other Restricted Payments made by Regency Energy Partners
and its Restricted Subsidiaries (excluding Restricted Payments permitted by clauses (2),
(3), (4) (to the extent, in the case of clause (4), payments are made to Regency Energy
Partners or a Restricted Subsidiary), (5), (6), (7) and (8) of Section 4.07(b) hereof)
during the quarter in which such Restricted Payment is made, is less than the sum, without
duplication, of:

     (A) Available Cash from Operating Surplus as of the end of the immediately
preceding quarter; plus

     (B) 100% of the aggregate net cash proceeds received by Regency Energy Partners
(including the Fair Market Value of any Permitted Business or long-term assets

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that are used or useful in a Permitted Business to the extent acquired in
consideration of Equity Interests of Regency Energy Partners (other than
Disqualified Equity)) since the date of this Indenture as a contribution to its
common equity capital or from the issue or sale of Equity Interests of Regency
Energy Partners (other than Disqualified Equity) or from the issue or sale of
convertible or exchangeable Disqualified Equity or convertible or exchangeable debt
securities of Regency Energy Partners that have been converted into or exchanged for
such Equity Interests (other than Equity Interests (or Disqualified Equity or debt
securities) sold to a Subsidiary of Regency Energy Partners); plus

     (C) to the extent that any Restricted Investment that was made after the date
of this Indenture is sold for cash or Cash Equivalents or otherwise liquidated or
repaid for cash or Cash Equivalents, the return of capital with respect to such
Restricted Investment (less the cost of disposition, if any); plus

     (D) the net reduction in Restricted Investments resulting from dividends,
repayments of loans or advances, or other transfers of assets in each case to
Regency Energy Partners or any of its Restricted Subsidiaries from any Person
(including Unrestricted Subsidiaries) or from redesignations of Unrestricted
Subsidiaries as Restricted Subsidiaries, to the extent such amounts have not been
included in Available Cash from Operating Surplus for any period commencing on or
after the date of this Indenture (items (b), (c) and (d) being referred to as
“Incremental Funds”); minus

     (E) the aggregate amount of Incremental Funds previously expended pursuant to
this clause (1) and clause (2) below; or

     (2) if the Fixed Charge Coverage Ratio for Regency Energy Partners’ most recently ended
four full fiscal quarters for which internal financial statements are available at the time
of such Restricted Payment is less than 1.75 to 1.0, such Restricted Payment, together with
the aggregate amount of all other Restricted Payments made by Regency Energy Partners and
its Restricted Subsidiaries (excluding Restricted Payments permitted by clauses (2),(3),(4)
(to the extent, in the case of clause (4), payments are made to Regency Energy Partners or a
Restricted Subsidiary), (5), (6), (7) and (8) of Section 4.07(b) hereof) during the quarter
in which such Restricted Payment is made (such Restricted Payments for purposes of this
clause (2) meaning only distributions on common units and subordinated units of Regency
Energy Partners, plus the related distribution on the general partner interest), is less
than the sum, without duplication, of:

     (A) $100.0 million less the aggregate amount of all prior Restricted Payments
made by Regency Energy Partners and its Restricted Subsidiaries pursuant to this
clause (2)(A) during the period since the date of this Indenture; plus

     (B) Incremental Funds to the extent not previously expended to this clause (2)
or clause (1) above.

          
(b) The provisions of Section 4.07(a) hereof shall not prohibit:

     (1) the payment of any dividend or distribution within 60 days after the date of its
declaration, if at the date of declaration the payment would have complied with the
provisions of this Indenture;

     (2) so long as no Default (except a Reporting Default) has occurred and is continuing
or would be caused thereby, the redemption, repurchase, retirement, defeasance or other
acquisi-

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tion of subordinated Indebtedness of Regency Energy Partners or any Guarantor or of any
Equity Interests of Regency Energy Partners in exchange for, or out of the net cash proceeds
of, a substantially concurrent (a) capital contribution to Regency Energy Partners from any
Person (other than a Restricted Subsidiary of Regency Energy Partners) or (b) sale (other
than to a Restricted Subsidiary of Regency Energy Partners) of Equity Interests of Regency
Energy Partners, with a sale being deemed substantially concurrent if such redemption,
repurchase, retirement, defeasance or other acquisition occurs not more than 120 days after
such sale; provided that the amount of any such net cash proceeds that are utilized for any
such redemption, repurchase, retirement, defeasance or other acquisition will be excluded or
deducted from the calculation of Available Cash from Operating Surplus and Incremental
Funds;

     (3) so long as no Default (except a Reporting Default) has occurred and is continuing
or would be caused thereby, the defeasance, redemption, repurchase or other acquisition or
retirement of any subordinated Indebtedness of Regency Energy Partners or any Guarantor with
the net cash proceeds from an incurrence of, or in exchange for, Permitted Refinancing
Indebtedness;

     (4) the payment of any distribution or dividend by a Restricted Subsidiary of Regency
Energy Partners to the holders of its Equity Interests (other than Disqualified Equity) on a
pro rata basis;

     (5) so long as no Default (except a Reporting Default) has occurred and is continuing
or would be caused thereby, the repurchase, redemption or other acquisition or retirement
for value of any Equity Interests of Regency Energy Partners or any Restricted Subsidiary of
Regency Energy Partners held by any current or former officer, director or employee of the
General Partner, Regency Energy Partners or any of Regency Energy Partners’ Restricted
Subsidiaries pursuant to any equity subscription agreement or plan, stock or unit option
agreement, shareholders’ agreement or similar agreement; provided that the aggregate price
paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed
$2.0 million in any calendar year; provided further that such amount in any calendar year
may be increased by an amount not to exceed (a) the cash proceeds received by Regency Energy
Partners from the sale of Equity Interests of Regency Energy Partners to members of
management or directors of the General Partner, Regency Energy Partners or its Restricted
Subsidiaries that occurs after the date of this Indenture (to the extent the cash proceeds
from the sale of such Equity Interests have not otherwise been applied to the payment of
Restricted Payments by virtue of clauses (1)(B) or (2)(B) of Section 4.07(a) hereof), plus
(b) the cash proceeds of key man life insurance policies received by Regency Energy Partners
after the date of this Indenture;

     (6) so long as no Default (except a Reporting Default) has occurred and is continuing
or would be caused thereby, payments of dividends on Disqualified Equity issued pursuant to
Section 4.09 hereof;

     (7) repurchases of Capital Stock deemed to occur upon exercise of stock options,
warrants or other convertible securities if such Capital Stock represents a portion of the
exercise price of such options, warrants or other convertible securities; or

     (8) so long as no Default (except a Reporting Default) has occurred and is continuing
or would be caused thereby, cash payments in lieu of the issuance of fractional shares in
connection with the exercise of warrants, options or other securities convertible into or
exchangeable for Capital Stock of Regency Energy Partners.

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The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by Regency Energy Partners or such Restricted Subsidiary, as the case may be, pursuant to the
Restricted Payment. The Fair Market Value of any assets or securities that are required to be
valued by this Section 4.07 will be determined, in the case of amounts under $15.0 million, by an
Officer of the General Partner and, in the case of amounts over $15.0 million, by the Board of
Directors of the General Partner, whose resolution with respect thereto shall be delivered to the
Trustee. For the purposes of determining compliance with this Section 4.07, if a Restricted
Payment meets the criteria of more than one of the categories of Restricted Payments described in
the preceding clauses (1)-(8), Regency Energy Partners will be permitted to classify (or reclassify
in whole or in part in its sole discretion) such Restricted Payment in any manner that complies
with this Section 4.07.

Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

          
(a) Regency Energy Partners shall not, and will not permit any of its Restricted Subsidiaries
to, directly or indirectly, create or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary to:

     (1) pay dividends or make any other distributions on its Equity Interests to Regency
Energy Partners or any of its Restricted Subsidiaries or to pay any indebtedness owed to
Regency Energy Partners or any of its Restricted Subsidiaries;

     (2) make loans or advances to Regency Energy Partners or any of its Restricted
Subsidiaries; or

     (3) sell, lease or transfer any of its properties or assets to Regency Energy Partners
or any of its Restricted Subsidiaries.

          
(b) The restrictions in Section 4.08(a) hereof will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements as in effect on the date of this Indenture and any amendments,
restatements, modifications, renewals, supplements, refundings, replacements or refinancings
of those agreements or the Indebtedness to which they relate; provided that the amendments,
restatements, modifications, renewals, supplements, refundings, replacements or refinancings
are not materially more restrictive, taken as a whole, with respect to such dividend,
distribution and other payment restrictions than those contained in those agreements on the
date of this Indenture;

     (2) this Indenture, the Notes and the Note Guarantees;

     (3) applicable law, rule, regulation or order;

     (4) any instrument governing Indebtedness or Equity Interests of a Person acquired by
Regency Energy Partners or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness or Equity Interests were incurred
in connection with or in contemplation of such acquisition), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any Person,
other than the Person, or the property or assets of the Person, so acquired; provided that,
in the case of Indebtedness, the incurrence thereof was otherwise permitted by the terms of
this Indenture;

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     (5) customary non-assignment provisions contracts for purchase, gathering, processing,
sale, transportation or exchange of crude oil, natural gas liquids, condensate and natural
gas, natural gas storage agreements, in transportation agreements or purchase and sale or
exchange agreements, pipeline or terminating agreements, or similar operational agreements
or in licenses or leases, in each case licenses entered into in the ordinary course of
business;

     (6) purchase money obligations for property acquired in the ordinary course of business
and Capital Lease Obligations that impose restrictions on the property purchased or leased
of the nature described in clause (3) of Section 4.08(a) hereof;

     (7) any agreement for the sale or other disposition of a Restricted Subsidiary that
restricts distributions by that Restricted Subsidiary pending its sale or other disposition;

     (8) Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing the
Indebtedness being refinanced;

     (9) Liens permitted to be incurred under the provisions of Section 4.12 hereof that
limit the right of the debtor to dispose of the assets subject to such Liens;

     (10) provisions limiting the disposition or distribution of assets or property in joint
venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements,
buy/sell agreements and other similar agreements entered into in the ordinary course of
business;

     (11) any agreement or instrument relating to any property or assets acquired after the
date hereof, so long as such encumbrance or restriction relates only to the property or
assets so acquired and is not and was not created in anticipation of such acquisitions;

     (12) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business; and

     (13) any instrument governing Indebtedness of an FERC Subsidiary, provided that such
Indebtedness was otherwise permitted by this Indenture to be incurred

Section 4.09 Incurrence of Indebtedness and Issuance of Disqualified Equity.

          
(a) Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and Regency Energy Partners will not issue any Disqualified
Equity and will not permit any of its Restricted Subsidiaries to issue any Disqualified Equity;
provided, however, that Regency Energy Partners and any Restricted Subsidiary may incur
Indebtedness (including Acquired Debt) and Regency Energy Partners and the Restricted Subsidiaries
may issue Disqualified Equity, if the Fixed Charge Coverage Ratio for Regency Energy Partners’ most
recently ended four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Equity is issued, as the case may be, would have been at least 2.0 to 1.0, determined
on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the
additional Indebtedness had been incurred or the Disqualified Equity had been issued, as the case
may be, at the beginning of such four-quarter period.

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(b) The provisions of Section 4.09(a) hereof shall not prohibit the incurrence of any of the
following items of Indebtedness (collectively, “Permitted Debt”) or the issuance of any preferred
securities describe in clause (ii) below:

     (1) the incurrence by Regency Energy Partners and any Restricted Subsidiary of
additional Indebtedness (including and letters of credit) under Credit Facilities, provided,
that, after giving effect to such incurrence, the aggregate principal amount of all
Indebtedness incurred under this clause (1) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of Regency Energy Partners and its
Restricted Subsidiaries thereunder) and then outstanding does not exceed the greater of (a)
$450.0 million and (b) the sum of $250.0 million and 20% of Regency Energy Partners’
Consolidated Net Tangible Assets;

     (2) the incurrence by Regency Energy Partners and its Restricted Subsidiaries of the
Existing Indebtedness;

     (3) the incurrence by Regency Energy Partners, Finance Corp. and the Guarantors of
Indebtedness represented by the Notes and the related Note Guarantees to be issued on the
date of this Indenture and the Exchange Notes and the related Note Guarantees to be issued
pursuant to a Registration Rights Agreement;

     (4) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case, incurred for the purpose of financing all or any part of the
purchase price or cost of construction or improvement of property, plant or equipment used
in the business of Regency Energy Partners or any of its Restricted Subsidiaries, including
all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace,
defense or discharge any Indebtedness incurred pursuant to this clause (4), provided that
after giving effect to such incurrence the aggregate principal amount of all Indebtedness
incurred pursuant to this clause (4) and then outstanding does not exceed the greater of (a)
$20.0 million and (b) 2.0% of Regency Energy Partners’ Consolidated Net Tangible Assets;

     (5) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
renew, refund, refinance, replace, defease or discharge any Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred under Section
4.09(a) hereof or clauses (2) or (3) of this Section 4.09(b) or this clause (5);

     (6) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among Regency Energy Partners and any of its Restricted
Subsidiaries; provided, however, that:

     (A) if Regency Energy Partners or any Guarantor is the obligor on such
Indebtedness and the payee is not Regency Energy Partners or a Guarantor, such
Indebtedness must be expressly subordinated to the prior payment in full in cash of
all Obligations then due with respect to the Notes, in the case of Regency Energy
Partners, or the Note Guarantee, in the case of a Guarantor, and

     (B) (1) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than Regency Energy Partners or a
Restricted Subsidiary of Regency Energy Partners and (2) any sale or other transfer
of any such Indebtedness to a Person that is not either Regency Energy Partners or a
Re-

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stricted Subsidiary of Regency Energy Partners, will be deemed, in each case,
to constitute an incurrence of such Indebtedness by Regency Energy Partners or such
Restricted Subsidiary, as the case may be, that was not permitted by this clause
(6);

     (7) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
Hedging Obligations;

     (8) the guarantee by Regency Energy Partners or any of its Restricted Subsidiaries of
Indebtedness of Regency Energy Partners or a Restricted Subsidiary of Regency Energy
Partners that was permitted to be incurred by another provision of this Section 4.09;
provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the
Notes, then the Guarantee shall be subordinated or pari passu, as applicable, to the same
extent as the Indebtedness guaranteed;

     (9) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
obligations relating to net gas balancing positions arising in the ordinary course of
business and consistent with past practice;

     (10) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
Acquired Debt in connection with a transaction meeting either one of the financial tests set
forth in clause (4) under Section 5.01(a);

     (11) the issuance by any of Regency Energy Partners’ Restricted Subsidiaries to Regency
Energy Partners or to any of its Restricted Subsidiaries of any preferred securities;
provided, however, that:

     (a) any subsequent issuance or transfer of Equity Interests that results in any
such preferred securities being held by a Person other than Regency Energy Partners
or a Restricted Subsidiary of Regency Energy Partners; and

     (b) any sale or other transfer of any such preferred securities to a Person
that is not either Regency Energy Partners or a Restricted Subsidiary of Regency
Energy Partners

will be deemed, in each case, to constitute an issuance of such preferred securities by such
Restricted Subsidiary that was not permitted by this clause (11); and

     (12) the incurrence by Regency Energy Partners or any of its Restricted Subsidiaries of
additional Indebtedness; provided that, after giving effect to any such incurrence, the
aggregate principal amount of all Indebtedness incurred under this clause (12) does not
exceed the greater of (a) $25.0 million and (b) 2.5% of Regency Energy Partners’
Consolidated Net Tangible Assets.

          
Regency Energy Partners shall not incur, and shall not permit Finance Corp. or any Guarantor
to incur, any Indebtedness (including Permitted Debt) that is contractually subordinated in right
of payment to any other Indebtedness of Regency Energy Partners, Finance Corp. or such Guarantor
unless such Indebtedness is also contractually subordinated in right of payment to the Notes and
the applicable Note Guarantee on substantially identical terms; provided, however, that no
Indebtedness of a Person shall be deemed to be contractually subordinated in right of payment to
any other Indebtedness of such Person solely by virtue of being unsecured or by virtue of being
secured on a first or junior Lien basis.

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For purposes of determining compliance with this Section 4.09, if an item of proposed
Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in
clauses (1) through (12) above, or is entitled to be incurred pursuant to Section 4.09(a) hereof,
Regency Energy Partners will be permitted to classify such item of Indebtedness on the date of its
incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner that
complies with this Section 4.09. Indebtedness under Credit Facilities outstanding on the date on
which Notes are first issued and authenticated under this Indenture will initially be deemed to
have been incurred on such date in reliance on the exception provided by clause (1) of the
definition of Permitted Debt.

          
The accrual of interest, the accretion or amortization of original issue discount, the payment
of interest on any Indebtedness in the form of additional Indebtedness with the same terms, the
reclassification of preferred stock as Indebtedness due to a change in accounting principles, and
the payment of dividends on Disqualified Equity in the form of additional shares of the same class
of Disqualified Equity will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Equity for purposes of this Section 4.09; provided, however, in each such case, that
the amount of any such accrual, accretion or payment is included in Fixed Charges of Regency Energy
Partners as accrued. Notwithstanding any other provision of this Section 4.09, the maximum amount
of Indebtedness that Regency Energy Partners or any Restricted Subsidiary may incur pursuant to
this Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations in exchange
rates or currency values.

Section 4.10 Asset Sales.

          
Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (1) Regency Energy Partners (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market Value of the
assets or Equity Interests issued or sold or otherwise disposed of;

     (2) such Fair Market Value is determined by (a) an executive Officer of the General
Partner if the value is less than $15.0 million, as evidenced by an Officers’ Certificate
delivered to the Trustee, or (b) the Board of Directors of the General Partner if the value
is $15.0 million or more, as evidenced by a resolution of such Board of Directors of the
General Partners; and

     (3) at least 75% of the aggregate consideration received by Regency Energy Partners and
its Restricted Subsidiaries in the Asset Sale and all other Asset Sales since the date of
this Indenture is in the form of cash or Cash Equivalents. For purposes of this provision,
each of the following shall be deemed to be cash:

     (A) any liabilities, as shown on Regency Energy Partners’ most recent
consolidated balance sheet, of Regency Energy Partners or any Restricted Subsidiary
(other than contingent liabilities and liabilities that are by their terms
subordinated to the Notes or any Note Guarantee) that are assumed by the transferee
of any such assets pursuant to a customary novation agreement that releases Regency
Energy Partners or such Restricted Subsidiary from further liability; and

     (B) any securities, notes or other obligations received by Regency Energy
Partners or any such Restricted Subsidiary from such transferee that are within 90
days after the Asset Sale (subject to ordinary settlement periods), converted by
Regency Energy Partners or such Restricted Subsidiary into cash or Cash Equivalents,
to the extent of the cash or Cash Equivalents received in that conversion.

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Within 360 days after the receipt of any Net Proceeds from an Asset Sale, Regency Energy
Partners (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds:

     (1) to repay Senior Indebtedness of Regency Energy Partners and/or its Restricted
Subsidiaries (or to make an offer to repurchase or redeem such Indebtedness, provided that
such repurchase or redemption closes within 45 days after the end of such 360-day period)
with a permanent reduction in availability for any revolving credit Indebtedness;

     (2) to acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of Capital
Stock, the Permitted Business is or becomes a Restricted Subsidiary of Regency Energy
Partners;

     (3) to make a capital expenditure; or

     (4) to acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business.

Pending the final application of any Net Proceeds, Regency Energy Partners or the applicable
Restricted Subsidiary may temporarily reduce revolving credit borrowings or otherwise invest the
Net Proceeds in any manner that is not prohibited by this Indenture.

          
Any Net Proceeds from Asset Sales that are not applied or invested as provided in the second
paragraph of this Section 4.10 will constitute “Excess Proceeds.” When the aggregate amount of
Excess Proceeds exceeds $20.0 million, within five days thereof, Regency Energy Partners will make
an Asset Sale Offer, pursuant to Section 3.09, to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
this Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets to
purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be
purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to
100% of the principal amount plus accrued and unpaid interest and Liquidated Damages, if any, to
the date of purchase, and will be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, Regency Energy Partners may use those Excess Proceeds for any
purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and
other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, then the Notes and such other pari passu Indebtedness shall be purchased on a pro rata
basis (with such adjustments as may be deemed appropriate by the Issuers so that only Notes and
such other pari passu Indebtedness will be purchased in an authorized denomination and integral
multiples thereof). Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will
be reset at zero.

          
In making an Asset Sale Offer Regency Energy Partners will comply with the applicable
requirements of Rule 14e-1 under the Exchange Act and other securities laws and regulations. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of Section 3.09 hereof or this Section 4.10, Regency Energy Partners will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under Section 3.09 hereof or this Section 4.10 by virtue of such compliance.

Section 4.11 Transactions with Affiliates.

          
(a) Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries
to, make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property or assets from, or enter into or make or amend any transaction,
con-

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tract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of Regency Energy Partners (each an “Affiliate Transaction”), unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to Regency Energy
Partners or the relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by Regency Energy Partners or such Restricted Subsidiary with an
unrelated Person; and

     (2) Regency Energy Partners delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25.0 million, a
resolution of the Board of Directors of the General Partner set forth in an
Officers’ Certificate certifying that such Affiliate Transaction complies with
clause (1) of this Section 4.11 (a) and that such Affiliate Transaction has been
approved by a majority of the disinterested members of the Board of Directors of
Regency Energy Partners; and

     (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $50.0 million, a written
opinion as to the fairness to Regency Energy Partners or such Subsidiary of such
Affiliate Transaction from a financial point of view issued by an accounting,
appraisal or investment banking firm of recognized industry standing.

          
(b) The following items will not be deemed to be Affiliate Transactions and, therefore, shall
not be subject to the provisions of Section 4.11(a) hereof:

     (1) any employment agreement, equity award, equity option or equity appreciation
agreement or plan or any similar arrangement entered into by Regency Energy Partners or any
of its Restricted Subsidiaries in the ordinary course of business and payments pursuant
thereto;

     (2) transactions between or among Regency Energy Partners and/or its Restricted
Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of Regency Energy
Partners) that is an Affiliate of Regency Energy Partners solely because Regency Energy
Partners owns, directly or through a Restricted Subsidiary, an Equity Interest in, or
controls, such Person;

     (4) any issuance of Equity Interests (other than Disqualified Equity) of Regency Energy
Partners to Affiliates of Regency Energy Partners;

     (5) Restricted Payments or Permitted Investments that do not violate Section 4.07
hereof;

     (6) customary compensation, indemnification and other benefits made available to
officers, directors or employees of Regency Energy Partners, a Restricted Subsidiary of
Regency Energy Partners or the General Partner, including reimbursement or advancement of
out-of-pocket expenses and provisions of officers’ and directors’ liability insurance;

     (7) in the case of contracts for purchase, gathering, processing, sale, transportation
and marketing of crude oil, natural gas, condensate and natural gas liquids, hedging
agreements,

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and production handling, operating, construction, terminaling, storage, lease, platform
use, or other operational contracts, any such contracts are entered into in the ordinary
course of business on terms substantially similar to those contained in similar contracts
entered into by Regency Energy Partners or any Restricted Subsidiary and third parties, or
if neither Regency Energy Partners nor any Restricted Subsidiary has entered into a similar
contract with a third party, that the terms are no less favorable than those available from
third parties on an arm’s-length basis, as determined by the Board of Directors of the
General Partner;

     (8) loans or advances to employees in the ordinary course of business not to exceed
$1.0 million in the aggregate at any one time outstanding; and

     (9) the existence of, or the performance by Regency Energy Partners or any Restricted
Subsidiary of its obligations under the terms of, any agreements that are described in the
Offering Memorandum under the heading “Certain relationships and related party transactions”
to which it is a party on the terms described in the Offering Memorandum and any amendments
thereto and any similar agreements which it may enter into thereafter; provided, however,
that the existence of, or the performance by Regency Energy Partners or any Restricted
Subsidiary of its obligations under, any future amendment to such agreements or under any
such similar agreements shall only be permitted by this clause (9) to the extent that the
terms of any such amendment or new agreement, taken as a whole, are not less favorable to
the Holders in any material respect as determined by the Board of Directors of the General
Partner in its reasonable good faith judgment.

Section 4.12 Liens.

          
Regency Energy Partners will not, and will not permit any of its Restricted Subsidiaries to,
create, incur, assume or otherwise cause or suffer to exist or become effective any Lien of any
kind (other than Permitted Liens) securing Indebtedness (including any Attributable Debt) upon any
of their property or assets, now owned or hereafter acquired, unless all payments due under the
Notes are secured on an equal and ratable basis or on a senior basis with the obligations so
secured until such time as such obligations are no longer secured by a Lien (other than Permitted
Liens).

Section 4.13 Business Activities.

          
Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries to,
engage in any business other than Permitted Businesses, except to such extent as would not be
material to Regency Energy Partners and its Restricted Subsidiaries taken as a whole.

          
Finance Corp. shall not hold any material assets, become liable for any material obligations
or engage in any significant business activities; provided, that Finance Corp. may be a co-obligor
or guarantor with respect to Indebtedness if Regency Energy Partners is an obligor on such
Indebtedness and the net proceeds of such Indebtedness are received by Regency Energy Partners,
Finance Corp. or one or more Guarantors. At any time after Regency Energy Partners is a
corporation, Finance Corp. may consolidate or merge with or into Regency Energy Partners or any
Restricted Subsidiary.

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Section 4.14 Corporate Existence.

          
Subject to Article 5 hereof, Regency Energy Partners shall do or cause to be done all things
necessary to preserve and keep in full force and effect:

     (1) its limited partnership existence, and the corporate, partnership or other
existence of each of its Restricted Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of Regency Energy
Partners or any such Restricted Subsidiary; and

     (2) the rights (charter and statutory), licenses and franchises of Regency Energy
Partners and its Restricted Subsidiaries;

provided, however, that Regency Energy Partners shall not be required to preserve any such right,
license or franchise, or the corporate, partnership or other existence of any of its Restricted
Subsidiaries, if it shall determine that the preservation thereof is no longer desirable in the
conduct of the business of Regency Energy Partners and its Restricted Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the Holders of the
Notes.

Section 4.15 Offer to Repurchase Upon Change of Control.

          
(a) Upon the occurrence of a Change of Control, Regency Energy Partners shall make an offer (a
“Change of Control Offer”) to each Holder of Notes to repurchase all or any part (equal to $1,000
or an integral multiple of $1,000) of that Holder’s Notes at a purchase price in cash equal to 101%
of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest and
Liquidated Damages, if any, on the Notes repurchased to, but excluding, the date of purchase,
subject to the rights of Holders of Notes on the relevant record date to receive interest due on an
interest payment date that is prior to the purchase date (the “Change of Control Payment”). Within
30 days following any Change of Control, Regency Energy Partners will mail a notice to each Holder
describing the transaction or transactions that constitute the Change of Control and stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and
that all Notes tendered will be accepted for payment;

     (2) the purchase price and the purchase date, which shall be no earlier than 20
Business Days and no later than 60 days from the date such notice is mailed (the “Change of
Control Payment Date”);

     (3) that any Note not tendered will continue to accrue interest and Liquidated Damages,
if any;

     (4) that, unless Regency Energy Partners Default in the payment of the Change of
Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will
cease to accrue interest and Liquidated Damages, if any, after the Change of Control Payment
Date;

     (5) that Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option of Holder to
Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the
Paying Agent at the address specified in the notice prior to the close of business on the
third Business Day preceding the Change of Control Payment Date;

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     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of Notes delivered for purchase, and a
statement that such Holder is withdrawing his election to have the Notes purchased; and

     (7) that Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in principal amount or an integral multiple
thereof.

          
Regency Energy Partners shall comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.15, Regency Energy
Partners shall comply with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under this Section 4.15 by virtue of such compliance.

     (b) On the Change of Control Payment Date, Regency Energy Partners shall, to the extent
lawful:

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Issuers.

          
The Paying Agent shall promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Notes (or, to the extent the Notes are in global form, make such payment
through the facilities of DTC), and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered; provided, that each new Note will be in a principal amount of
$1,000 or an integral multiple of $1,000. Regency Energy Partners will publicly announce the
results of the Change of Control Offer on or as soon as practicable after the Change of Control
Payment Date.

          
The provisions described above that require the Issuers to make a Change of Control Offer
following a Change of Control will be applicable whether or not any other provisions of this
Indenture are applicable.

         
(c) Notwithstanding anything to the contrary in this Section 4.15, Regency Energy Partners
will not be required to make a Change of Control Offer upon a Change of Control if (1) a third
party makes the Change of Control Offer in the manner, at the times and otherwise in compliance
with the requirements set forth in this Section 4.15 and purchases all Notes properly tendered and
not withdrawn under the Change of Control Offer, or (2) notice of redemption has been given
pursuant to Section 3.07 hereof, unless and until there is a default in payment of the applicable
redemption price.

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Section 4.16 Limitation on Sale and Leaseback Transactions.

          
Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries to,
enter into any sale and leaseback transaction; provided that Regency Energy Partners or any
Restricted Subsidiary may enter into a sale and leaseback transaction if the transfer of assets in
that sale and leaseback transaction is permitted by, and Regency Energy Partners or such Restricted
Subsidiary applies the proceeds of such transaction in compliance with, Section 4.10 hereof.

Section 4.17 Payments for Consent.

          
Regency Energy Partners shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any
Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth
in the solicitation documents relating to such consent, waiver or agreement.

Section 4.18 Additional Guarantees.

          
If, after the date of this Indenture, any Restricted Subsidiary of Regency Energy Partners
that is not already a Guarantor guarantees any Indebtedness of either of the Issuers or any
Indebtedness of any Guarantor, or any Domestic Subsidiary, if not then a Guarantor, incurs any
Indebtedness under any Credit Facility, then in either case that Subsidiary will become a Guarantor
by executing a supplemental indenture substantially in the form of Exhibit F hereto and delivering
it to the Trustee within 20 Business Days of the date on which it guaranteed or incurred such
Indebtedness, as the case may be; provided, however, that the preceding shall not apply to
Subsidiaries of Regency Energy Partners that have been properly designated as Unrestricted
Subsidiaries in accordance with this Indenture for so long as they continue to constitute
Unrestricted Subsidiaries. Notwithstanding the preceding, any Note Guarantee of a Restricted
Subsidiary that was incurred pursuant to this paragraph as a result of its guarantee of any
Indebtedness shall provide by its terms that it shall be automatically and unconditionally released
upon the release or discharge of the Guarantee that resulted in the creation of such Restricted
Subsidiary’s Note Guarantee, except a discharge or release by, or as a result of payment under,
such Guarantee.

Section 4.19 Designation of Restricted and Unrestricted Subsidiaries.

          
The Board of Directors of the General Partner may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary
is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by Regency Energy Partners and its Restricted Subsidiaries in the Subsidiary
designated as Unrestricted will be deemed to be either an Investment made as of the time of the
designation that will reduce the amount available for Restricted Payments under Section 4.07 hereof
or a Permitted Investment under one or more clauses of the definition of Permitted Investments, as
determined by Regency Energy Partners; provided that any designation will only be permitted if the
Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary.

          
Any designation of a Subsidiary of Regency Energy Partners as an Unrestricted Subsidiary will
be evidenced to the Trustee by filing with the Trustee a certified copy of a resolution of the
Board of Directors of the General Partner giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the preceding conditions and was
permitted by Section 4.07 hereof. If, at any time, any Unrestricted Subsidiary would fail to meet
the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture

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and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of Regency Energy Partners as of such date and, if such Indebtedness is not permitted to
be incurred as of such date under Section 4.09 hereof, Regency Energy Partners will be in default
of such covenant. The Board of Directors of the General Partner may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary of Regency Energy Partners; provided that
such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of
Regency Energy Partners of any outstanding Indebtedness of such Unrestricted Subsidiary, and such
designation will only be permitted if (1) such Indebtedness is permitted under Section 4.09 hereof,
calculated on a pro forma basis as if such designation had occurred at the beginning of the
four-quarter reference period; and (2) no Default or Event of Default would be in existence
following such designation.

Section 4.20 Termination of Covenants.

          
If at any time the Notes achieve an Investment Grade Rating from both of the Rating Agencies
and no Default or Event of Default has occurred and is then continuing under this Indenture,
Regency Energy Partners and its Restricted Subsidiaries will no longer be subject to the following
provisions of this Indenture:

     (1) Section 4.10;

     (2) Section 4.07;

     (3) Section 4.08;

     (4) Section 4.09;

     (5) Section 4.11;

     (6) Section 4.13;

     (7) Section 4.19;

     (8) Section 5.01(a)(4); and

     (9) Section 4.16.

          
Promptly after such termination, Regency Energy Partners shall deliver to the Trustee an
Officers’ Certificate certifying to such termination.

ARTICLE 5

SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

          
(a) Neither of the Issuers may, directly or indirectly: (1) consolidate or merge with or into
another Person (whether or not such Issuer is the surviving entity); or (2) sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of the properties or assets of
Regency Energy Partners and its Subsidiaries, taken as a whole, in one or more related
transactions, to another Person, unless:

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     (1) either:

     (A) such Issuer is the surviving entity; or

     (B) the Person formed by or surviving any such consolidation or merger (if
other than such Issuer) or to which such sale, assignment, transfer, lease,
conveyance or other disposition has been made is a Person organized or existing
under the laws of the United States, any state of the United States or the District
of Columbia; provided, however, that Finance Corp. may not consolidate or merge with
or into any Person other than a corporation satisfying such requirement so long as
Regency Energy Partners is not a corporation;

     (2) the Person formed by or surviving any such consolidation or merger (if other than
such Issuer) or the Person to which such sale, assignment, transfer, lease, conveyance or
other disposition has been made assumes all the obligations of such Issuer under the Notes,
this Indenture and each Registration Rights Agreement pursuant to agreements reasonably
satisfactory to the Trustee;

     (3) immediately after such transaction, no Default or Event of Default exists;

     (4) in the case of a transaction involving Regency Energy Partners and not Finance
Corp., Regency Energy Partners or the Person formed by or surviving any such consolidation
or merger (if other than Regency Energy Partners), or to which such sale, assignment,
transfer, lease, conveyance or other disposition has been made, will, either:

     (A) be, on the date of such transaction after giving pro forma effect thereto
and any related financing transactions as if the same had occurred at the beginning
of the applicable four-quarter period, permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth
in Section 4.09(a); or

     (B) have a Fixed Charge Coverage Ratio, on the date of such transaction and
after giving pro forma effect thereto and any related financing transactions as if
the same had occurred at the beginning of the applicable four-quarter period, not
less than the Fixed Charge Coverage Ratio of Regency Energy Partners immediately
prior to such transaction; and

     (5) such Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or disposition and such supplemental
indenture (if any) comply with this Indenture and all conditions precedent therein relating
to such transaction have been satisfied;

provided that clause (4) shall not apply to any sale of assets of a Restricted Subsidiary to
Regency Energy Partners or another Restricted Subsidiary or the merger or consolidation of a
Restricted Subsidiary into any Restricted Subsidiary or Regency Energy Partners.

          
(b) Notwithstanding Section 5.01(a), Regency Energy Partners is permitted to reorganize as any
other form of entity in accordance with the procedures established in this Indenture; provided
that:

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     (1) the reorganization involves the conversion (by merger, sale, legal conversion,
contribution or exchange of assets or otherwise) of Regency Energy Partners into a form of
entity other than a limited partnership formed under Delaware law;

     (2) the entity so formed by or resulting from such reorganization is an entity
organized or existing under the laws of the United States, any state thereof or the District
of Columbia;

     (3) the entity so formed by or resulting from such reorganization assumes all the
obligations of Regency Energy Partners under the Notes, this Indenture and each Registration
Rights Agreement pursuant to agreements reasonably satisfactory to the Trustee;

     (4) immediately after such reorganization no Default or Event of Default exists; and

     (5) such reorganization is not materially adverse to the Holders of the Notes (for
purposes of this clause (5) it is stipulated that such reorganization shall not be
considered materially adverse to the Holders of the Notes solely because the successor or
survivor of such reorganization (a) is subject to federal or state income taxation as an
entity or (b) is considered to be an “includible corporation” of an affiliated group of
corporations within the meaning of Section 1504(b)(i) of the Internal Revenue Code of 1986,
as amended, or any similar state or local law).

          
(c) A Guarantor may not sell or otherwise dispose of all or substantially all of its
properties or assets to, or consolidate with or merge with or into (whether or not such Guarantor
is the surviving Person), another Person, other than Regency Energy Partners or another Guarantor,
except as permitted by Sections 10.04 and 10.05 hereof.

Section 5.02 Successor Person Substituted.

          
Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of Regency Energy
Partners in a transaction that is subject to, and that complies with the provisions of, Section
5.01 hereof, the successor Person formed by such consolidation or into or with which Regency Energy
Partners is merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Regency Energy Partners” shall refer instead to the
successor Person and not to Regency Energy Partners), and may exercise every right and power of
Regency Energy Partners under this Indenture with the same effect as if such successor Person had
been named as Regency Energy Partners herein.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

          
Each of the following is an “Event of Default”:

     (1) default for 30 days in the payment when due of interest on, or Liquidated Damages,
if any, with respect to, the Notes;

     (2) default in the payment when due (at stated maturity, upon redemption or otherwise)
of the principal of, or premium, if any, on, the Notes;

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     (3) failure by the Issuers or the Guarantors to make a Change of Control Offer or an
Asset Sale Offer within the timer periods set forth, or consummate a purchase of Notes when
required pursuant to the terms described in Sections 4.15 or 4.10 or comply with the
provisions of Section 5.01 hereof;

     (4) failure by Regency Energy Partners for 90 days after notice to comply with the
provisions of Section 4.03 hereof;

     (5) failure by the Issuers or the Guarantors for 60 days after written notice to comply
with any of the other agreements in this Indenture;

     (6) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by Regency
Energy Partners or any of its Restricted Subsidiaries (or the payment of which is guaranteed
by Regency Energy Partners or any of its Restricted Subsidiaries), whether such indebtedness
or Guarantee now exists, or is created after the date of this Indenture, if that default:

     (A) is caused by a failure to pay principal of, or interest or premium, if any,
on, such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $20.0 million or more,
provided, however, that if, prior to any acceleration of the Notes, (i) any such Payment
Default is cured or waived, (ii) any such acceleration is rescinded, or (iii) such
Indebtedness is repaid during the 10 Business Day period commencing upon the end of any
applicable grace period for such Payment Default or the occurrence of such acceleration, as
applicable, any Default or Event of Default (but not any acceleration) caused by such
Payment Default or acceleration shall automatically be rescinded, so long as such rescission
does not conflict with any judgment, decree or applicable law;

     (7) failure by an Issuer or any of Regency Energy Partners’ Restricted Subsidiaries to
pay final judgments entered by a court or courts of competent jurisdiction aggregating in
excess of $20.0 million, which judgments are not paid, discharged or stayed for a period of
60 days;

     (8) an Issuer or any of Regency Energy Partners’ Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners
that, taken together, would constitute a Significant Subsidiary pursuant to or within the
meaning of Bankruptcy Law:

     (A) commences a voluntary case,

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

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

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

     (E) generally is not paying its debts as they become due;

     (9) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief against an Issuer or any of Regency Energy Partners’
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Regency Energy Partners that, taken together, would constitute a
Significant Subsidiary in an involuntary case;

     (B) appoints a custodian of an Issuer or any of Regency Energy Partners’
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of Regency Energy Partners that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of an Issuer
or any of Regency Energy Partners’ Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners that,
taken together, would constitute a Significant Subsidiary; or

     (C) orders the liquidation of an Issuer or any of Regency Energy Partners’
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of Regency Energy Partners that, taken together, would constitute a
Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days; and

     (10) except as permitted by this Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and
effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or
disaffirms its Obligations under its Note Guarantee.

Section 6.02 Acceleration.

          
In the case of an Event of Default specified in clause (8) or (9) of Section 6.01 hereof, with
respect to Finance Corp., Regency Energy Partners or any Restricted Subsidiary of Regency Energy
Partners that is a Significant Subsidiary or any group of Restricted Subsidiaries of Regency Energy
Partners that, taken together, would constitute a Significant Subsidiary, all outstanding Notes
will become due and payable immediately without further action or notice. If any other Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare, by notice in writing to the Issuers, all the
Notes to be due and payable immediately.

          
Upon any such declaration, the Notes shall become due and payable immediately.

          
The Holders of a majority in aggregate principal amount of the then outstanding Notes by
notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an acceleration or
waive any existing Default or Event of Default and its consequences under this Indenture except a
continuing Default or Event of Default in the payment of interest or premium or Liquidated Damages,
if any, on, or the principal of, the Notes.

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Section 6.03 Other Remedies.

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

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

Section 6.04 Waiver of Past Defaults.

          
Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium and Liquidated Damages, if any, or interest on,
the Notes (including in connection with an offer to purchase); provided, however, that the Holders
of a majority in aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that resulted from such
acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

Section 6.05 Control by Majority.

          
Holders of a majority in aggregate principal amount of the then outstanding Notes may direct
the time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture that the Trustee determines may be
unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in
personal liability.

Section 6.06 Limitation on Suits.

          
A Holder may pursue a remedy with respect to this Indenture or the Notes only if:

     (1) such Holder gives to the Trustee written notice that an Event of Default is
continuing;

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

     (3) such Holder or Holders offer and, if requested, provide to the Trustee security or
indemnity reasonably satisfactory to the Trustee against any loss, liability or expense;

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

     (5) during such 60-day period, Holders of a majority in aggregate principal amount of
the then outstanding Notes do not give the Trustee a direction inconsistent with such
request.

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

Section 6.07 Rights of Holders of Notes to Receive Payment.

          
Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium and Liquidated Damages, if any, and interest on the Note, on
or after the respective due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

Section 6.08 Collection Suit by Trustee.

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

Section 6.09 Trustee May File Proofs of Claim.

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

Section 6.10 Priorities.

          
If the Trustee collects any money or property pursuant to this Article 6, it shall pay out the
money or property in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

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     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium and Liquidated Damages, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for principal,
premium and Liquidated Damages, if any, and interest, respectively; and

     Third: to the Issuers or to such party as a court of competent jurisdiction shall
direct.

          
The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

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

Section 6.12 Willful Action or Inaction.

          
In the case of any Event of Default occurring by reason of any willful action or inaction
taken or not taken by or on behalf of an Issuer with the intention of avoiding payment of the
premium that the Issuers would have had to pay if the Issuers then had elected to redeem the Notes
on or after December 15, 2010 pursuant to Section 3.07, an equivalent premium will also become and
be immediately due and payable to the extent permitted by law upon the acceleration of the Notes.
If an Event of Default occurs prior to December 15, 2010 by reason of any willful action or
inaction taken or not taken by or on behalf of an Issuer with the intention of avoiding the
prohibition on redemption of the Notes prior to that date, then the applicable redemption price
pursuant to Section 3.07 with respect to the first year that the Notes may be redeemed at the
Issuers’ option (other than with the net cash proceeds of an Equity Offering or on a make-whole
basis) will also become immediately due and payable to the extent permitted by law upon the
acceleration of the Notes.

ARTICLE 7

TRUSTEE

Section 7.01 Duties of Trustee.

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

          
(b) Except during the continuance of an Event of Default:

     (1) the duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this

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Indenture and no others, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee will examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

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

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

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

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

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

          
(e) No provision of this Indenture will require the Trustee to expend or risk its own funds or
incur any liability. The Trustee will be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders, unless such Holder has offered to the
Trustee security or indemnity reasonably satisfactory to it against any loss, liability or expense.

          
(f) The Trustee will not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuers. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

Section 7.02 Rights of Trustee.

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

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

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

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

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(e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Issuers will be sufficient if signed by an Officer of each of the Issuers.

          
(f) The Trustee will be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders have
offered to the Trustee reasonable indemnity or security against the losses, liabilities and
expenses that might be incurred by it in compliance with such request or direction.

Section 7.03 Individual Rights of Trustee.

          
The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuers or any Affiliate of the Issuers with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest (as defined in the TIA) after a Default has occurred and is continuing it must eliminate
such conflict within 90 days, apply to the SEC for permission to continue as trustee (if this
Indenture has been qualified under the TIA) or resign. Any Agent may do the same with like rights
and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04 Trustee’s Disclaimer.

          
The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Issuers’ use of the
proceeds from the Notes or any money paid to the Issuers or upon the Issuers’ direction under any
provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

          
If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee will mail to Holders of Notes a notice of the Default or Event of Default within 90
days after it occurs. Except in the case of a Default or Event of Default in payment of principal
of, premium or Liquidated Damages, if any, or interest on, any Note, the Trustee may withhold the
notice if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

          
(a) Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will mail to the Holders of the
Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The Trustee
will also transmit by mail all reports as required by TIA § 313(c).

          
(b) A copy of each report at the time of its mailing to the Holders of Notes will be mailed by
the Trustee to the Issuers and filed by the Trustee with the SEC and each stock exchange on which
the Notes are listed in accordance with TIA § 313(d). The Issuers will promptly notify the Trustee
when the Notes are listed on any stock exchange.

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Section 7.07 Compensation and Indemnity.

          
(a) The Issuers will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust. The Issuers will reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred
or made by it in addition to the compensation for its services. Such expenses will include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

          
(b) The Issuers and the Guarantors will indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Issuers and the Guarantors (including this Section 7.07) and defending
itself against any claim (whether asserted by the Issuers, the Guarantors, any Holder or any other
Person) or liability in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be attributable to its
negligence or bad faith. The Trustee will notify the Issuers promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Issuers will not relieve the Issuers
or any of the Guarantors of their obligations hereunder. The Issuers or such Guarantor will defend
the claim and the Trustee will cooperate in the defense. The Trustee may have separate counsel and
the Issuers will pay the reasonable fees and expenses of such counsel. Neither the Issuers nor any
Guarantor need pay for any settlement made without its consent, which consent will not be
unreasonably withheld.

          
(c) The obligations of the Issuers and the Guarantors under this Section 7.07 will survive the
satisfaction and discharge of this Indenture.

          
(d) To secure the Issuers’ and the Guarantors’ payment obligations in this Section 7.07, the
Trustee will have a Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal, premium, if any, Liquidated Damages, if any,
and interest on particular Notes. Such Lien will survive the satisfaction and discharge of this
Indenture.

          
(e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(8) or (9) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

          
(f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent applicable.

Section 7.08 Replacement of Trustee.

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

          
(b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Issuers. The Holders of a majority in aggregate principal amount of
the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuers in
writing. The Issuers may remove the Trustee if:

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

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

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

     (4) the Trustee becomes incapable of acting.

          
(c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Issuers will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Issuers.

          
(d) If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Issuers, or the Holders of at least 10% in
aggregate principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

          
(e) If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10 hereof, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          
(f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuers. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant
to this Section 7.08, the Issuers’ obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

          
If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

          
There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

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

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Section 7.11 Preferential Collection of Claims Against the Issuers.

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

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

          
The Issuers may, at their option and at any time, elect to have either Section 8.02 or 8.03
hereof be applied to all outstanding Notes and Note Guarantees upon compliance with the conditions
set forth below in this Article 8.

Section 8.02 Legal Defeasance and Discharge.

          
Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Issuers and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with
respect to all outstanding Notes (including the Note Guarantees) on the date the conditions set
forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance
means that the Issuers and the Guarantors will be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes (including the Note Guarantees), which will
thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all
their other obligations under such Notes, the Note Guarantees and this Indenture (and the Trustee,
on demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the
same), except for the following provisions which will survive until otherwise terminated or
discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, or interest or premium and Liquidated Damages, if any, on, such Notes when
such payments are due from the trust referred to in Section 8.04 hereof;

     (2) the Issuers’ obligations with respect to the Notes concerning issuing temporary
Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance
of an office or agency for payment and money for security payments held in trust;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuers’ and the Guarantors’ obligations in connection therewith; and

     (4) this Article 8.

          
Subject to compliance with this Article 8, the Issuers may exercise their option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

          
Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Issuers and each of the Guarantors will, subject to the satisfaction of the conditions
set forth

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in Section 8.04 hereof, be released from each of their obligations under the covenants
contained in Sections 3.09, 4.03, 4.04 (except for paragraph (a) thereof to the extent required by
the TIA), 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18 and 4.19 hereof
and clause (4) of Section 5.01 hereof with respect to the outstanding Notes, and the Guarantors
will be released from their obligations with respect to the Note Guarantees, on and after the date
the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes will thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes will not be deemed outstanding for accounting
purposes to the extent permitted by GAAP). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes and Note Guarantees, the Issuers and the Guarantors may omit to
comply with and will have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply will not constitute a Default or an Event of
Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture
and such Notes and Note Guarantees will be unaffected thereby. In addition, upon the Issuers’
exercise under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3) through 6.01(7)
inclusive hereof will not constitute Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

          
In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

     (1) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination of cash in U.S. dollars and non-callable Government Securities, in amounts as
will be sufficient, in the opinion of a nationally recognized investment bank, appraisal
firm or firm of independent public accountants, to pay the principal of, or interest and
premium and Liquidated Damages, if any, on the outstanding Notes on the stated date for
payment thereof or on the applicable Redemption Date, as the case may be, and the Issuers
must specify whether the Notes are being defeased to such stated date for payment or to a
particular Redemption Date;

     (2) in the case of an election under Section 8.02 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that:

     (A) the Issuers have received from, or there has been published by, the
Internal Revenue Service a ruling; or

     (B) since the date of this Indenture, there has been a change in the applicable
federal income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel shall confirm
that, the Holders of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such Legal Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such Legal Defeasance had not occurred;

     (3) in the case of an election under Section 8.03 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the
Hold-

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ers of the outstanding Notes will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which Regency Energy Partners or any of its Subsidiaries is a party
or by which Regency Energy Partners or any of its Subsidiaries is bound;

     (6) the Issuers must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Issuers with the intent of preferring the Holders of Notes over
the other creditors of the Issuers with the intent of defeating, hindering, delaying or
defrauding any creditors of the Issuers or others; and

     (7) the Issuers must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

			
	Section 8.05	 	Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

          
Subject to Section 8.06 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including either Issuer acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of principal, premium and
Liquidated Damages, if any, and interest, but such money need not be segregated from other funds
except to the extent required by law.

          
The Issuers will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes.

          
Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Issuers from time to time upon the request of the Issuers any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized investment bank, appraisal firm or firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee (which may be the opinion delivered under
Section 8.04(1) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

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Section 8.06 Repayment to the Issuers.

          
Any money deposited with the Trustee or any Paying Agent, or then held by the Issuers, in
trust for the payment of the principal of, premium or Liquidated Damages, if any, or interest on,
any Note and remaining unclaimed for two years after such principal, premium or Liquidated Damages,
if any, or interest has become due and payable shall be paid to the Issuers on their request or (if
then held by the Issuers) will be discharged from such trust; and the Holder of such Note will
thereafter be permitted to look only to the Issuers for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuers as
trustee thereof, will thereupon cease; provided, however, that, if any Notes then outstanding are
in definitive form, the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuers cause to be published once, in The New York Times and
The Wall Street Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining will be repaid to
the Issuers.

Section 8.07 Reinstatement.

          
If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Issuers’ and the Guarantors’ obligations under this
Indenture and the Notes and the Note Guarantees will be revived and reinstated as though no deposit
had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case
may be; provided, however, that, if the Issuers make any payment of principal of, premium or
Liquidated Damages, if any, or interest on, any Note following the reinstatement of its
obligations, the Issuers will be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

          
Notwithstanding Section 9.02 of this Indenture, the Issuers, the Guarantors and the Trustee
may amend or supplement this Indenture or the Notes or the Note Guarantees without the consent of
any Holder of Notes:

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

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Issuers’ or a Guarantor’s obligations to the
Holders of the Notes and Note Guarantees in the case of a merger or consolidation or sale of
all or substantially all of the Issuers’ or such Guarantors’ properties or assets, as
applicable;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights hereunder of any
such Holder;

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

     (6) to conform the text of this Indenture or the Note Guarantees to any provision of
the “Description of Notes” section of the Issuers’ Offering Memorandum to the extent that
such text of this Indenture or the Note Guarantees was intended to reflect such provision of
the “Description of Notes”;

     (7) to provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the date hereof;

     (8) to allow any Guarantor to execute a supplemental indenture and/or a notation of
Note Guarantee with respect to the Notes or to reflect the addition or release of a Note
Guarantee in accordance with this Indenture;

     (9) to secure the Notes and/or the Note Guarantees; or

     (10) to provide for the reorganization of Regency Energy Partners as any other form of
entity, in accordance with Section 5.01(b).

          
Upon the request of the Issuers accompanied by resolutions of their Boards of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 9.06 hereof, the Trustee will join with the Issuers
and the Guarantors in the execution of any amended or supplemental indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee will not be obligated to enter into
such amended or supplemental indenture that affects its own rights, duties or immunities under this
Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

          
Except as provided below in this Section 9.02, the Issuers, the Guarantors and the Trustee may
amend or supplement this Indenture (including Sections 3.09, 4.10 and 4.15 hereof) and the Notes
and the Note Guarantees with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes (including Additional Notes, if any) voting as a
single class (including, without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any
existing Default or Event of Default or compliance with any provision of this Indenture or the
Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in
aggregate principal amount of the then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the Notes). Section 2.08
hereof shall determine which Notes are considered to be “outstanding” for purposes of this Section
9.02.

          
Upon the request of the Issuers accompanied by resolutions of their Boards of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 9.06 hereof, the
Trustee will join with the Issuers and the Guarantors in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may
in its discretion, but will not be obligated to, enter into such amended or supplemental Indenture.

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

          
After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Issuers will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Issuers to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver.

          
However, without the consent of each Holder affected, an amendment, supplement or waiver under
this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

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

     (2) reduce the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption or repurchase of the Notes (other than provisions
relating to Sections 3.09, 4.10 or 4.15 hereof);

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

     (4) waive a Default or Event of Default in the payment of principal of, or interest or
premium or Liquidated Damages, if any, on the Notes (except a rescission of acceleration of
the Notes by the Holders of at least a majority in aggregate principal amount of the then
outstanding Notes and a waiver of the payment default that resulted from such acceleration);

     (5) make any Note payable in money other than that stated in the Notes;

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of, principal of, or interest
or premium or Liquidated Damages, if any, on, the Notes (other than as permitted by clause
(7) below);

     (7) waive a redemption or repurchase payment with respect to any Note (other than a
payment required by Sections 4.10 or 4.15 hereof);

     (8) release any Guarantor from any of its obligations under its Note Guarantee or this
Indenture, except in accordance with the terms of this Indenture; or

     (9) make any change in the preceding amendment, supplement and waiver provisions.

Section 9.03 Compliance with Trust Indenture Act.

          
Every amendment or supplement to this Indenture or the Notes will be set forth in an amended
or supplemental indenture that complies with the TIA as then in effect.

Section 9.04 Revocation and Effect of Consents.

          
Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or por-

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tion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of
a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder; except as
provided in the last paragraph of Section 9.02.

Section 9.05 Notation on or Exchange of Notes.

          
The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Issuers in exchange for all Notes may issue and the Trustee
shall, upon receipt of a Company Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

          
Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

          
The Trustee will sign any amended or supplemental indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Issuers may not sign an amended or supplemental indenture until
the Boards of Directors of each of the Issuers approves it. In executing any amended or
supplemental indenture, the Trustee will be entitled to receive and (subject to Section 7.01
hereof) will be fully protected in relying upon, in addition to the documents required by Section
12.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
amended or supplemental indenture is authorized or permitted by this Indenture. In the case of any
amendment or supplement pursuant to Section 9.01(6) hereof, such Officers’ Certificate shall
include a certification that the conforming change being made to this Indenture reflects the intent
of the Issuers and the Initial Purchasers.

ARTICLE 10

NOTE GUARANTEES

Section 10.01 Guarantee.

          
(a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes or the obligations of the Issuers hereunder or thereunder, that:

     (1) the principal of, premium and Liquidated Damages, if any, and interest on, the
Notes will be promptly paid in full when due, whether at stated maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Issuers to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

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     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

          
Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

          
(b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Issuers, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuers, any right to require a proceeding first against the Issuers, protest,
notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged
except by complete performance of the obligations contained in the Notes and this Indenture.

          
(c) If any Holder or the Trustee is required by any court or otherwise to return to the
Issuers, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Issuers or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force
and effect.

          
(d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes
of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the Guarantors for the
purpose of this Note Guarantee. The Guarantors will have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the rights of the
Holders under the Note Guarantee.

Section 10.02 Limitation on Guarantor Liability.

          
Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any
Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors
hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum
amount that will, after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in
the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer
or conveyance.

-78-

 

Section 10.03 Execution and Delivery of Note Guarantee.

          
To evidence its Note Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees
that a notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will
be endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee
and that this Indenture will be executed on behalf of such Guarantor by one of its Officers.

          
Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 hereof will
remain in full force and effect notwithstanding any failure to endorse on each Note a notation of
such Note Guarantee.

          
If an Officer whose signature is on this Indenture or on the notation of Note Guarantee no
longer holds that office at the time the Trustee authenticates the Note on which a notation of Note
Guarantee is endorsed, the Note Guarantee will be valid nevertheless.

          
The delivery of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

          
In the event that the Issuers or any of Regency Energy Partners’ Restricted Subsidiaries
creates or acquires any Domestic Subsidiary after the date of this Indenture, if required by
Section 4.18 hereof, the Issuers will cause such Domestic Subsidiary to comply with the provisions
of Section 4.18 hereof and this Article 10, to the extent applicable.

Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.

          
Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise
dispose of all or substantially all of its properties or assets to, or consolidate with or merge
with or into (whether or not such Guarantor is the surviving Person) another Person, other than
Regency Energy Partners or another Guarantor, unless:

     (1) immediately after giving effect to such transaction, no Default or Event of Default
exists; and

     (2) either:

     (a) subject to Section 10.05 hereof, the Person acquiring the properties or
assets in any such sale or other disposition or the Person formed by or surviving
any such consolidation or merger (other than the Guarantor) unconditionally assumes
all the obligations of that Guarantor under this Indenture, its Note Guarantee and
each Registration Rights Agreement on the terms set forth herein or therein,
pursuant to a supplemental indenture substantially in the form of Exhibit F hereto;
or

     (b) the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of this Indenture, including without
limitation, Section 4.10 hereof.

          
In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee, of such
obligations, such successor Person will succeed to and be substituted for the Guarantor with the
same effect as if it had been named herein as a Guarantor. Such successor Person thereupon may
cause to be signed any or all of the notations of Note Guarantees to be endorsed upon all of the
Notes issuable hereunder which

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theretofore shall not have been signed by the Issuers and delivered to the Trustee. All the
Note Guarantees so issued will in all respects have the same legal rank and benefit under this
Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of
this Indenture as though all of such Note Guarantees had been issued at the date of the execution
hereof.

Section 10.05 Releases.

          
(a) In the event of any sale or other disposition of all or substantially all of the
properties or assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or
other disposition of all of the Capital Stock of any Guarantor, in each case to a Person that is
not (either before or after giving effect to such transactions) Regency Energy Partners or a
Restricted Subsidiary of Regency Energy Partners, then such Guarantor (in the event of a sale or
other disposition, by way of merger, consolidation or otherwise, of all of the Capital Stock of
such Guarantor) or the Person acquiring the properties or assets (in the event of a sale or other
disposition of all or substantially all of the properties or assets of such Guarantor) will be
released and relieved of any obligations under its Note Guarantee; provided that the Net Proceeds
of such sale or other disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.10 hereof. Upon delivery by the Issuers to the
Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that such sale or other
disposition was made by the Issuers in accordance with the provisions of this Indenture, including
without limitation Section 4.10 hereof, the Trustee will execute any documents reasonably required
in order to evidence the release of any Guarantor from its obligations under its Note Guarantee.

          
(b) Upon designation of any Guarantor as an Unrestricted Subsidiary in accordance with the
terms of this Indenture, such Guarantor will be released and relieved of any obligations under its
Note Guarantee.

          
(c) At such time as any Guarantor ceases to guarantee any other Indebtedness of an Issuer or
another Guarantor, provided that, if it is also a Domestic Subsidiary, it is no longer an obligor
with respect to any Indebtedness under any Credit Facility; provided, however, that if, at any time
following such release, that Guarantor incurs a Guarantee under a Credit Facility, then such
Guarantor shall be required to provide a Note Guarantee at such time.

          
(d) Upon Legal or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and
discharge of this Indenture in accordance with Article 11 hereof, each Guarantor will be released
and relieved of any obligations under its Note Guarantee.

          
Any Guarantor not released from its obligations under its Note Guarantee as provided in this
Section 10.05 will remain liable for the full amount of principal of and interest and premium and
Liquidated Damages, if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 10.

ARTICLE 11

SATISFACTION AND DISCHARGE

Section 11.01 Satisfaction and Discharge.

          
This Indenture will be discharged and will cease to be of further effect as to all Notes
issued hereunder, when:

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     (1) either:

     (a) all Notes that have been authenticated, except lost, stolen or destroyed
Notes that have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Issuers, have been
delivered to the Trustee for cancellation; or

     (b) all Notes that have not been delivered to the Trustee for cancellation have
become due and payable or will become due and payable within one year by reason of
the mailing of a notice of redemption or otherwise and the Issuers or any Guarantor
has irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination of cash in U.S. dollars and non-callable
Government Securities, in amounts as will be sufficient, without consideration of
any reinvestment of interest, to pay and discharge the entire Indebtedness on the
Notes not delivered to the Trustee for cancellation for principal, premium and
Liquidated Damages, if any, and accrued interest to the date of fixed maturity or
redemption;

     (2) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit) and the deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which Regency Energy Partners or any
Guarantor is a party or by which Regency Energy Partners or any Guarantor is bound;

     (3) the Issuers or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

     (4) the Issuers have delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at fixed maturity or
on the Redemption Date, as the case may be.

          
In addition, the Issuers must deliver an Officers’ Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

          
Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01, the provisions of
Sections 11.02 and 8.06 hereof will survive. In addition, nothing in this Section 11.01 will be
deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 11.02 Application of Trust Money.

          
Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including either Issuer acting as Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium and Liquidated Damages, if any) and interest for
whose payment such money has been deposited with the Trustee; but such money need not be segregated
from other funds except to the extent required by law.

-81-

 

          
If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuers’ and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 hereof,
provided that if the Issuers have made any payment of principal of, premium or Liquidated Damages,
if any, or interest on, any Notes because of the reinstatement of its obligations, the Issuers
shall be subrogated to the rights of the Holders of such Notes to receive such payment from the
money or Government Securities held by the Trustee or Paying Agent.

ARTICLE 12

MISCELLANEOUS

Section 12.01 Trust Indenture Act Controls.

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

Section 12.02 Notices.

          
Any notice or communication by the Issuers, any Guarantor or the Trustee to the others is duly
given if in writing in the English language and delivered in Person or by first class mail
(registered or certified, return receipt requested), facsimile transmission or overnight air
courier guaranteeing next day delivery, to the others’ address:

          
If to the Issuers and/or any Guarantor:

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, Texas 75201

Facsimile No.: (214) 750-1749

Attention: Chief Legal Officer

          
With a copy to:

Vinson & Elkins L.L.P.

1001 Fannin, Suite 2500

Houston, Texas 77002

Facsimile No.: (713) 615-5306

Attention: C. Michael Harrington

          
If to the Trustee:

Wells Fargo Bank, National Association

Corporate Trust Services

213 Court Street, Suite 703

Middletown, Connecticut 06457

Facsimile No.: (860) 704-6219

Attention: Corporate Trust Services-Regency Energy Administrator

-82-

 

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

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

          
Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

          
If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

          
If the Issuers mail a notice or communication to Holders, they will mail a copy to the Trustee
and each Agent at the same time.

Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

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

Section 12.04 Certificate and Opinion as to Conditions Precedent.

          
Upon any request or application by the Issuers to the Trustee to take any action under this
Indenture, the Issuers shall furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 12.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 12.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

Section 12.05 Statements Required in Certificate or Opinion.

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

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

-83-

 

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

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

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

Section 12.06 Rules by Trustee and Agents.

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

Section 12.07 No Personal Liability of Directors, Officers, Employees and Stockholders.

          
Neither the General Partner nor any past, present or future director, officer, partner,
member, employee, incorporator, manager or unit holder or other owner of Equity Interest of the
Issuers or any Guarantor, as such, will have any liability for any obligations of the Issuers or
the Guarantors under the Notes, this Indenture, the Note Guarantees or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes and the Note Guarantees. The waiver may not be effective
to waive liabilities under the federal securities laws.

Section 12.08 Governing Law.

          
THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES
AND THE NOTE GUARANTEES.

Section 12.09 No Adverse Interpretation of Other Agreements.

          
This Indenture may not be used to interpret any other indenture, loan or debt agreement of
Regency Energy Partners or its Subsidiaries or of any other Person. Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

Section 12.10 Successors.

          
All agreements of the Issuers in this Indenture and the Notes will bind their successors. All
agreements of the Trustee in this Indenture will bind its successors. All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 10.05
hereof.

Section 12.11 Severability.

          
In case any provision in this Indenture or in the Notes is invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired thereby.

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Section 12.12 Counterpart Originals.

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

Section 12.13 Table of Contents, Headings, etc.

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

[Signatures on following page]

-85-

 

SIGNATURES

          
Dated as of the date first written above.

	 	 	 	 	 
	 	REGENCY ENERGY PARTNERS LP

 	 
	 	By:  	Regency GP LP,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
Regency GP LLC, its
 	 
	 	 	general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Stephen L. Arata 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 
	 
	 	REGENCY ENERGY FINANCE CORP.

 	 
	 	By:  	
 	 
	 	 	Name:  	Stephen L. Arata 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

REGENCY GAS SERVICES LP

 	 
	 	By:  	Regency OLP GP LLC, its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen L. Arata 	 
	 	 	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	REGENCY WAHA LP, LLC 

REGENCY NGL GP, LLC

REGENCY GAS MARKETING GP, LLC

REGENCY WAHA GP, LLC

REGENCY INTRASTATE GAS LLC

REGENCY MIDCON GAS LLC

REGENCY LIQUIDS PIPELINE LLC

REGENCY GAS GATHERING AND PROCESSING LLC

GULF STATES TRANSMISSION CORPORATION
 	 
	 	REGENCY NGL MARKETING LP 	 
	 	 	By:  	
Regency NGL GP, LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY GAS MARKETING LP 	 
	 	 	By:  	Regency Gas Marketing GP, LLC, 	 
	 	 	 	its General Partner 	 
	 	REGENCY GAS SERVICES WAHA, LP
 	 
	 	 	By:  	
Regency Waha GP, LLC, 	 
	 	 	 	its General Partner 	 
	 
	 	By:  	
 	 
	 	 	Stephen L. Arata 	 
	 	 	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	REGENCY TS GP LLC

REGENCY FIELD SERVICES LP 	 
	 	 	By:  	                      Regency TS GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY GUARANTOR GP LLC

REGENCY GUARANTOR LP
 	 
	 	 	By:  	                   Regency Guarantor GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY OPERATING GP LLC

REGENCY EASTEX NEWLINE LP
 	 
	 	 	By:  	                   Regency Operating GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY OPERATING LP 	 
	 	 	By:  	                    Regency Operating GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY EASTEX PROTREAT I LP 	 
	 	 	By:  	                  Regency Operating GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY EASTEX PROTREAT II LP 	 
	 	 	By:  	                  Regency Operating GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY GU GP LLC

REGENCY GAS UTILITY LP 	 
	 	 	By:  	                       Regency GU GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY FS GP LLC

REGENCY FS LP 	 
	 	 	By:  	                        Regency FS GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY TS ACQUISITION GP LLC

REGENCY TS ACQUISITION LP 	 
	 	 	By:  	               Regency TS Acquisition GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY FN GP LLC

REGENCY FRIO NEWLINE LP 	 
	 	 	By:  	                       REGENCY FN GP LLC,
 	 
	 	 	 	its General Partner 	 
	 	REGENCY TGG LLC 	 
	 	 	 	 
	 
	 	By:  	 	 
	 	 	Stephen L. Arata 	 
	 	 	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as 

Trustee
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT A

[Face of Note]

 

CUSIP [75886AAA6]1

8 3/8% Senior Notes due 2013

			
	No. ___
	 	$___

REGENCY ENERGY PARTNERS LP

and

REGENCY ENERGY FINANCE CORP.

promise to pay to                     , or registered assigns,

the principal sum of                                          DOLLARS on December 15, 2013.

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

Dated:                     , 20___

	 	 	 	 	 
	 	 	REGENCY ENERGY PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	Regency GP LP,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:
	 	Regency GP LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Stephen L. Arata
	 

	 	 	 	Title: Executive Vice President and
	 

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	REGENCY ENERGY FINANCE CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Stephen L. Arata
	 

	 	 	 	Title: Vice President

	 	 	 	 	 
	This is one of the Notes referred to	 	 
	in the within-mentioned Indenture:	 	 
	 
	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,	 	 
	as Trustee	 	 
	 
	 	 	 	 
	By:

	 	 
	 	 
	 

	 	Authorized Signatory	 	 

 

			
	 	 	1The CUSIP No. is USU75857AA72 for the Regulation S Note

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[Back of Note]

8 3/8% Senior Notes due 2013

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), promise to pay interest on the principal amount of
this Note at 8 3/8% per annum from December 12, 2006 until maturity and shall pay the Liquidated
Damages, if any, payable pursuant to Section 4 of the Registration Rights Agreement referred to
below. The Issuers will pay interest and Liquidated Damages, if any, semi-annually in arrears on
June 15 and December 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided further that the first Interest Payment Date shall be June 15, 2007. The Issuers
will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the rate then in effect to
the extent lawful; they will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any (without
regard to any applicable grace periods), from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted interest)
and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 or December 1 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. Holders of Definitive Notes
must surrender their Notes to the Paying Agent to collect payments of principal and premium, if
any, due at maturity. The Notes will be payable as to principal, premium, if any, and Liquidated
Damages, if any, and interest at the office or agency of the Issuers maintained for such purpose
within the continental United States, or, at the option of the Issuers, payment of interest and
Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment will be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. Regency Energy Partners or any of its
Subsidiaries may act in any such capacity.

     (4) Indenture. The Issuers issued the Notes under an Indenture dated as of December 12, 2006
(the “Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the TIA.
The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act
for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are unsecured obligations of the Issuers. The Indenture does not limit the aggregate
principal amount of Notes that may be issued thereunder.

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     (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers will not
have the option to redeem the Notes prior to December 15, 2010. On or after December 15, 2010, the
Issuers may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice,
at the redemption prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the
applicable Redemption Date, if redeemed during the twelve-month period beginning on December 15 of
each year indicated below, subject to the rights of Holders of Notes on the relevant record date to
receive interest on an Interest Payment Date that is on or prior to the Redemption Date:

	 	 	 	 	 
	Year	 	Percentage	 
	2010
	 	 	104.188	%
	2011
	 	 	102.094	%
	2012 and thereafter
	 	 	100.000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2009, the Issuers may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture
upon not less than 30 nor more than 60 days’ notice, at a redemption price of 108.375% of the
principal amount, plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an Interest Payment Date that is on or prior to the Redemption Date), with the net
cash proceeds of one or more Equity Offerings by Regency Energy Partners; provided that at least
65% of the aggregate principal amount of Notes (including any Additional Notes) issued under the
Indenture (excluding Notes held by Regency Energy Partners and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and the redemption occurs within 90
days of the date of the closing of such Equity Offering.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2010, the Issuers may also redeem all or a part of the Notes, upon not less than 30
nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Liquidated
Damages, if any, to the Redemption Date, subject to the rights of Holders on the relevant record
date to receive interest due on an Interest Payment Date that is prior to the Redemption Date.

     For purposes of subparagraph (c) of this Paragraph 5, “Applicable Premium” means, with respect
to any Note on any Redemption Date, the greater of (1) 1.0% of the principal amount of the Note or
(2) the excess of: (a) the present value at such Redemption Date of (i) the redemption price of the
Note at December 15, 2010 (such redemption price being set forth in the table appearing in
subparagraph (a)) plus (ii) all required interest payments due on the Note through December 15,
2010 (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate
equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over (b) the principal
amount of the Note, if greater. In addition, for purposes of subparagraph (c) of this Paragraph 5,
“Treasury Rate” means, as of any Redemption Date, the yield to maturity as of the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to December 15, 2010; provided, however, that if such
period is not equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, Regency Energy Partners shall obtain the Treasury Rate by linear
interpolation (calculated to the nearest one twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
the Redemption Date to December 15, 2010, is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year will
be used.

     (d) Unless the Issuers default in the payment of the redemption price, interest and Liquidated
Damages, if any, will cease to accrue on the Notes or portions thereof called for redemption on the
applicable Redemption Date.

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     (6) Mandatory Redemption.

     Except as set forth below, the Issuers are not required to make mandatory redemption or
sinking fund payments with respect to the Notes.

     (7) Repurchase at the Option of Holder.

     (a) If there is a Change of Control, the Issuers will be required to make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the
date of purchase, subject to the rights of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days
following any Change of Control, the Issuers will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

     (b) If the Issuers or a Restricted Subsidiary of Regency Energy Partners consummates any Asset
Sales, within five days of each date on which the aggregate amount of Excess Proceeds exceeds $20.0
million, the Issuers will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase the maximum principal
amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal amount plus accrued
and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the
procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and other
pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Regency Energy Partners (or such Restricted Subsidiary) may use such deficiency for any purpose
not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
then the Notes and such other pari passu Indebtedness shall be purchased on a pro rata basis.
Holders of Definitive Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer may elect to have such Notes purchased by completing the form entitled “Option of Holder to
Elect Purchase” attached to the Notes.

     (8) Notice of Redemption. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Issuers may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for
all purposes.

     (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes including Additional
Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance
with any provision of the Indenture or the Notes or the

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Note Guarantees may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes including Additional Notes, if any, voting as a
single class. Without the consent of any Holder of a Note, the Indenture or the Notes or the Note
Guarantees may be amended or supplemented to cure any ambiguity, defect or inconsistency, to
provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for
the assumption of the Issuers’ or a Guarantor’s obligations to Holders of the Notes and Note
Guarantees in the case of a merger or consolidation or sale of all or substantially all of the
Issuers’ or such Guarantor’s assets, as applicable, to make any change that would provide any
additional rights or benefits to the Holders of Notes or that does not adversely affect the legal
rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order
to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the
Indenture or the Note Guarantees to any provision of the “Description of Notes” section of the
Issuers’ Offering Memorandum to the extent that such text of the Indenture or the Notes Guarantees
was intended to reflect such provision of the “Description of Notes”, to provide for the issuance
of Additional Notes in accordance with the limitations set forth in the Indenture as of the date of
the Indenture, to allow any Guarantor to execute a supplemental indenture, to secure the Notes
and/or the Note Guarantees, or to provide for the reorganization of Regency Energy Partners as any
other form of entity, in accordance with Section 5.01 of the Indenture.

     (12) Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest on, or Liquidated Damages, if any, with respect to the Notes; (ii)
default in the payment when due (at stated maturity, upon redemption or otherwise) of the principal
of, or premium, if any, on the Notes; (iii) failure by Regency Energy Partners or any of its
Restricted Subsidiaries to timely consummate repurchase offers under Section 4.10 or 4.15 of the
Indenture or to comply with Section 5.01 of the Indenture; (iv) failure by Regency Energy Partners
for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by Regency
Energy Partners or any of its Restricted Subsidiaries for 60 days after written notice to comply
with any of the other agreements in the Indenture; (vi) default under certain other agreements
relating to Indebtedness of Regency Energy Partners or any of its Restricted Subsidiaries, which
default results in the acceleration of such Indebtedness prior to its express maturity; (vii)
certain final judgments for the payment of money that remain undischarged for a period of 60 days;
(viii) certain events of bankruptcy or insolvency with respect to the Issuers or any of Regency
Energy Partners’ Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (ix)
except as permitted by the Indenture, any Note Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor
or any Person acting on its behalf denies or disaffirms its obligations under such Guarantor’s Note
Guarantee. If any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, with respect to Finance Corp., Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners that is a Significant
Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners that, taken together,
would constitute a Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default if it determines that withholding notice is in their interest, except a
Default or Event of Default relating to the payment of principal, interest or premium or Liquidated
Damages, if any. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of interest or premium or
Liquidated Damages, if any, on, or the principal of, the Notes. The Issuers and the Guarantors are
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers and the Guarantors are required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

     (13) Trustee Dealings with the Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

     (14) No Recourse Against Others. Neither the General Partner nor any director, officer,
partner, member, employee, incorporator, manager or unit holder or other owner of Equity Interest
of the Issuers or any Guaran-

A-5

 

tor, as such, will have any liability for any obligations of the Issuers or the Guarantors
under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance
of the Notes and the Note Guarantees. The waiver may not be effective to waive liabilities under
the federal securities laws.

     (15) Authentication. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration
Rights Agreement dated as of December 12, 2006, among the Issuers, the Guarantors and the other
parties named on the signature pages thereof or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or
more registration rights agreements, if any, among the Issuers, the Guarantors and the other
parties thereto, relating to rights given by the Issuers and the Guarantors to the purchasers of
any Additional Notes (collectively, the “Registration Rights Agreement”).

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (19) GOVERNING LAW. THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES.

     The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Attention: Chief Financial Officer

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Assignment Form

To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: (Insert assignee’s legal name)

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                                                                                                                     
                                                                        

to transfer this Note on the books of the Issuers. The agent substitute another to act for him.

Date:                                         

Your Signature:                                                                                 

(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                                             

     • Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

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Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

o Section 4.10                                                                                                    o Section 4.15

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

Your Signature:                                                                  
              

(Sign exactly as your name appears on the face of this Note)

Tax Identification No.:                                                                      

Signature Guarantee*:                                                             

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

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Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of this	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Global Note	 	Signature of
	 	 	in Principal Amount	 	in Principal Amount	 	following such	 	authorized officer
	 	 	of	 	of	 	decrease	 	of Trustee or
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or increase)	 	Custodian
	 

	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

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EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Wells Fargo Bank, National Association

Corporate Trust Services

213 Court Street, Suite 703

Middletown, CT 06457

     Re: 8 3/8% Senior Notes due 2013

     Reference is hereby made to the Indenture, dated as of December 12, 2006 (the “Indenture”),
among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy Partners”), and
Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with Regency
Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     _________(the “Transferor”) owns and proposes to transfer the Note[s] or interest in such
Note[s] specified in Annex A hereto, in the principal amount of $___in such Note[s] or interests
(the “Transfer”), to ___(the “Transferee”), as further specified in Annex A hereto. In
connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

     1. o Check if Transferee will take delivery of a beneficial interest in the 144A Global Note
or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being effected pursuant
to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably believes is
purchasing the beneficial interest or Definitive Note for its own account, or for one or more
accounts with respect to which such Person exercises sole investment discretion, and such Person
and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

     2. o Check if Transferee will take delivery of a beneficial interest in the Regulation S
Global Note or a Restricted Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a
Person in the United States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with
a buyer in the United States, (ii) no directed selling efforts have been made in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act and (iii)
the transaction is not part of a plan or scheme to evade the registration requirements of the
Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumer-

B-1

 

ated in the Private Placement Legend printed on the Regulation S Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

     3. o Check and complete if Transferee will take delivery of a beneficial interest in a
Restricted Global Note or a Restricted Definitive Note pursuant to any provision of the Securities
Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with
the transfer restrictions applicable to beneficial interests in Restricted Global Notes and
Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any
applicable blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

          (a) o such Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

          (b) o such Transfer is being effected to the Issuers or a subsidiary thereof;

or

          (c) o such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act;

or

          (d) o such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that
it has not engaged in any general solicitation within the meaning of Regulation D under the
Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) if such
Transfer is in respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that such Transfer
is in compliance with the Securities Act. Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on a Restricted Global Note and/or the Restricted Definitive Notes
and in the Indenture and the Securities Act.

     4. o Check if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

          (a) o Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with
the transfer restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive
Notes and in the Indenture.

          (b) o Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue
sky securities laws of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of

B-2

 

the proposed Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes,
on Restricted Definitive Notes and in the Indenture.

          (c) o Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being
effected pursuant to and in compliance with an exemption from the registration requirements
of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws
of any State of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note will not be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuers.

	 	 	 	 	 
	 	 	 
	 	 	[Insert Name of Transferor]
	 	 	
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	Dated:
	 	 	 	 
	 
	 	 	 	 

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

     1. The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	 	 	 	 	 	 
	 	 	(a) o a beneficial interest in the:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	o144A Global Note (CUSIP ___), or
	 

	 	 	 	(ii)
	 	oRegulation S Global Note (CUSIP ___), or
	 

	 	 	 	(iii)
	 	 oIAI Global Note (CUSIP ___); or

     2. After the Transfer the Transferee will hold:

[CHECK ONE OF]

	 	 	 	 	 	 	 
	 	 	(a) o a beneficial interest in the:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	o144A Global Note (CUSIP ___), or
	 

	 	 	 	(ii)
	 	oRegulation S Global Note (CUSIP ___), or
	 

	 	 	 	(iii)
	 	oIAI Global Note (CUSIP ___); or
	 

	 	 	 	(iii)
	 	oUnrestricted Global Note (CUSIP ___); or
	 
	 	 	 	 	 	 
	 	 	(b) a Restricted Definitive Note; or
	 
	 	 	 	 	 	 
	 	 	(c) an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

B-4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Wells Fargo Bank, National Association

Corporate Trust Services

213 Court Street, Suite 703

Middletown, CT 06457

     Re: 8 3/8% Senior Notes due 2013

(CUSIP                     )

     Reference is hereby made to the Indenture, dated as of December 12, 2006 (the “Indenture”),
among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy Partners”), and
Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with Regency
Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

                                              (the “Owner”) owns and proposes to exchange the Note[s] or interest in such
Note[s] specified herein, in the principal amount of $___in such Note[s] or interests (the
“Exchange”). In connection with the Exchange, the Owner hereby certifies that:

     1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance
with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

     (b) o Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

     (c) [Reserved]

     (d) o Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive
Note, the Owner

C-1

 

hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv)
the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuers.

	 	 	 	 	 
	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 

C-2

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Wells Fargo Bank, National Association

Corporate Trust Services

213 Court Street, Suite 703

Middletown, CT 06457

     Re: 8 3/8% Senior Notes due 2013

     Reference is hereby made to the Indenture, dated as of December 12, 2006 (the “Indenture”),
among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy Partners”), and
Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with Regency
Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     In connection with our proposed purchase of $___aggregate principal amount of:

     (a) o a beneficial interest in a Global Note, or

     (b) o a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to Regency Energy Partners or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined
therein), (C) to an institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the
Issuers a signed letter substantially in the form of this letter and, if such transfer is in
respect of a principal amount of Notes, at the time of transfer of less than $250,000, an Opinion
of Counsel in form reasonably acceptable to the Issuers to the effect that such transfer is in
compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of
Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under the
Securities Act or (F) pursuant to an effective registration statement under the Securities Act, and
we further agree to provide to any Person purchasing the Definitive Note or beneficial interest in
a Global Note from us in a transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted as stated herein.

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Issuers such certifications, legal opinions and other
information as you and the

D-1

 

Issuers may reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a legend to the
foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Issuers are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	 	 
	 	 	[Insert Name of Accredited Investor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	Dated:
	 	 	 	 
	 
	 	 	 	 

D-2

 

EXHIBIT E

[FORM OF NOTATION OF GUARANTEE]

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, dated as of December 12, 2006 (the
“Indenture”), among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium, if any, and Liquidated Damages, if any, and interest on, the Notes, whether at stated
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of, premium if any, interest and Liquidated Damages, if any, on the Notes, if
any, if lawful, and the due and punctual performance of all other obligations of the Issuers to the
Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of
the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

	 	 	 	 	 	 	 
	 	 	 	 	[Name of Guarantor(s)]
	 	 	 
	 	 	 	 
	 	 	 

	 	By:	 	 
	 	 	 

	 	 	 	 
	 	 	 

	 	 	 	Name:
	 	 	 

	 	 	 	Title:
	 	 	 
	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 
	 	 	 	 

E-1

 

EXHIBIT F

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

     Supplemental Indenture (this “Supplemental Indenture”), dated as of ___, 200___, among ___(the
“Guaranteeing Subsidiary”), Regency Energy Partners LP, a Delaware limited partnership (“Regency
Energy Partners”), and Regency Energy Finance Corp. (“Finance Corp.” and, together with Regency
Energy Partners, the “Issuers”), the other Guarantors (as defined in the Indenture referred to
herein) and Wells Fargo Bank, National Association, as trustee under the Indenture referred to
below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of December 12, 2006 providing for the issuance of 8 3/8% Senior Notes due
2013 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee
and in the Indenture including but not limited to Article 10 thereof.

     3. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have
any liability for any obligations of the Issuers or any Guaranteeing Subsidiary under the Notes,
any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

     4. NEW YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

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

     6. Effect of Headings. The Section headings herein are for convenience only and shall
not affect the construction hereof.

     7. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and the Issuers.

F-1

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

Dated: _________, 20___

	 	 	 	 	 
	 	 	[Guaranteeing Subsidiary]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	REGENCY ENERGY PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	Regency GP LP,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:
	 	Regency GP LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	REGENCY ENERGY FINANCE CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[Existing Guarantors]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

F-2

 

[Face of Note]

CUSIP 75886AAA6

8 3/8% Senior Notes due 2013

			
	 	 	 
	No. 1
	 	$500,000,000

REGENCY ENERGY PARTNERS LP

and

REGENCY ENERGY FINANCE CORP.

promise to pay to Cede & Co., or registered assigns,

the principal sum of FIVE HUNDRED MILLION DOLLARS on December 15, 2013.

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

Dated: December 12, 2006

1

 

	 	 	 	 	 	 	 
	 	 	REGENCY ENERGY PARTNERS LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Regency GP LP,

its general partner
	 
	 	 	 	 	 	 
	 	 	By:	 	Regency GP LLC,

its general partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Stephen L. Arata
	 

	 	 	 	Title:
	 	Executive Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	REGENCY ENERGY FINANCE CORP.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Stephen L. Arata
	 

	 	 	 	Title:
	 	Vice President

2

 

This is one of the Notes referred to

in the within-mentioned Indenture:

	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee
	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	Authorized Signatory

3

 

[Back of Note]

8 3/8% Senior Notes due 2013

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE
SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2)
THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND THE NOTE
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE NOTE EVIDENCED HEREBY IS
HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT.
THE HOLDER OF THE NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (l)(A) TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), PURCHASING FOR ITS OWN ACCOUNT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A UNDER THE SECURITIES ACT, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 OF THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 50l(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN “INSTITUTIONAL
ACCREDITED INVESTOR”) THAT IS PURCHASING AT LEAST $250,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; PROVIDED THAT IN THE CASE OF A TRANSFER UNDER
CLAUSE (E) SUCH TRANSFER IS SUBJECT TO THE RECEIPT BY THE TRUSTEE OF A CERTIFICATION OF THE
TRANSFEROR AND AN OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (2) TO THE ISSUERS OR THEIR RESPECTIVE SUBSIDIARIES OR (3) UNDER AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION
AND THE INDENTURE

1

 

GOVERNING THE NOTES AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.
IF ANY RESALE OR OTHER TRANSFER OF ANY NOTE IS PROPOSED TO BE MADE UNDER CLAUSE (A)(1)(D) ABOVE
WHILE THESE TRANSFER RESTRICTIONS ARE IN FORCE THEN THE TRANSFEROR SHALL DELIVER A LETTER FROM THE
TRANSFEREE TO THE TRUSTEE WHICH SHALL PROVIDE, AMONG OTHER THINGS, THAT THE TRANSFEREE IS AN
INSTITUTIONAL ACCREDITED INVESTOR AND THAT IT IS ACQUIRING THE SECURITIES FOR INVESTMENT PURPOSES
AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT.

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), promise to pay interest on the principal amount of
this Note at 8 3/8% per annum from December 12, 2006 until maturity and shall pay the Liquidated
Damages, if any, payable pursuant to Section 4 of the Registration Rights Agreement referred to
below. The Issuers will pay interest and Liquidated Damages, if any, semi-annually in arrears on
June 15 and December 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided further that the first Interest Payment Date shall be June 15, 2007. The Issuers
will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the rate then in effect to
the extent lawful; they will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any (without
regard to any applicable grace periods), from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted interest)
and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 or December 1 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. Holders of Definitive Notes
must surrender their Notes to the Paying Agent to collect payments of principal and premium, if
any, due at maturity. The Notes will be payable as to principal, premium, if any, and Liquidated
Damages, if any, and interest at the office or agency of the Issuers maintained for such purpose
within the continental United States, or, at the option of the Issuers, payment of interest and
Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment will be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. Regency Energy Partners or any of its
Subsidiaries may act in any such capacity.

     (4) Indenture. The Issuers issued the Notes under an Indenture dated as of December 12, 2006
(the “Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the TIA.
The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act
for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be con-

2

 

trolling. The Notes are unsecured obligations of the Issuers. The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

     (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers will not
have the option to redeem the Notes prior to December 15, 2010. On or after December 15, 2010, the
Issuers may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice,
at the redemption prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the
applicable Redemption Date, if redeemed during the twelve-month period beginning on December 15 of
each year indicated below, subject to the rights of Holders of Notes on the relevant record date to
receive interest on an Interest Payment Date that is on or prior to the Redemption Date:

	 	 	 	 	 
	Year	 	Percentage
	2010

	 	 	104.188	%
	2011

	 	 	102.094	%
	2012 and thereafter

	 	 	100.000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2009, the Issuers may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture
upon not less than 30 nor more than 60 days’ notice, at a redemption price of 108.375% of the
principal amount, plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an Interest Payment Date that is on or prior to the Redemption Date), with the net
cash proceeds of one or more Equity Offerings by Regency Energy Partners; provided that at least
65% of the aggregate principal amount of Notes (including any Additional Notes) issued under the
Indenture (excluding Notes held by Regency Energy Partners and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and the redemption occurs within 90
days of the date of the closing of such Equity Offering.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2010, the Issuers may also redeem all or a part of the Notes, upon not less than 30
nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Liquidated
Damages, if any, to the Redemption Date, subject to the rights of Holders on the relevant record
date to receive interest due on an Interest Payment Date that is prior to the Redemption Date.

     For purposes of subparagraph (c) of this Paragraph 5, “Applicable Premium” means, with respect
to any Note on any Redemption Date, the greater of (1) 1.0% of the principal amount of the Note or
(2) the excess of: (a) the present value at such Redemption Date of (i) the redemption price of the
Note at December 15, 2010 (such redemption price being set forth in the table appearing in
subparagraph (a)) plus (ii) all required interest payments due on the Note through December 15,
2010 (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate
equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over (b) the principal
amount of the Note, if greater. In addition, for purposes of subparagraph (c) of this Paragraph 5,
“Treasury Rate” means, as of any Redemption Date, the yield to maturity as of the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to December 15, 2010; provided, however, that if such
period is not equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, Regency Energy Partners shall obtain the Treasury Rate by linear
interpolation (calculated to the nearest one twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
the Redemption Date to December 15, 2010, is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year will
be used.

3

 

     (d) Unless the Issuers default in the payment of the redemption price, interest and Liquidated
Damages, if any, will cease to accrue on the Notes or portions thereof called for redemption on the
applicable Redemption Date.

     (6) Mandatory Redemption.

     Except as set forth below, the Issuers are not required to make mandatory redemption or
sinking fund payments with respect to the Notes.

     (7) Repurchase at the Option of Holder.

     (a) If there is a Change of Control, the Issuers will be required to make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the
date of purchase, subject to the rights of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days
following any Change of Control, the Issuers will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

     (b) If the Issuers or a Restricted Subsidiary of Regency Energy Partners consummates any Asset
Sales, within five days of each date on which the aggregate amount of Excess Proceeds exceeds $20.0
million, the Issuers will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase the maximum principal
amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal amount plus accrued
and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the
procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and other
pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Regency Energy Partners (or such Restricted Subsidiary) may use such deficiency for any purpose
not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
then the Notes and such other pari passu Indebtedness shall be purchased on a pro rata basis.
Holders of Definitive Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer may elect to have such Notes purchased by completing the form entitled “Option of Holder to
Elect Purchase” attached to the Notes.

     (8) Notice of Redemption. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Issuers may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for
all purposes.

4

 

     (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes including Additional
Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance
with any provision of the Indenture or the Notes or the Note Guarantees may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes
including Additional Notes, if any, voting as a single class. Without the consent of any Holder of
a Note, the Indenture or the Notes or the Note Guarantees may be amended or supplemented to cure
any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in
place of certificated Notes, to provide for the assumption of the Issuers’ or a Guarantor’s
obligations to Holders of the Notes and Note Guarantees in the case of a merger or consolidation or
sale of all or substantially all of the Issuers’ or such Guarantor’s assets, as applicable, to make
any change that would provide any additional rights or benefits to the Holders of Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, to comply with
the requirements of the SEC in order to effect or maintain the qualification of the Indenture under
the TIA, to conform the text of the Indenture or the Note Guarantees to any provision of the
“Description of Notes” section of the Issuers’ Offering Memorandum to the extent that such text of
the Indenture or the Notes Guarantees was intended to reflect such provision of the “Description of
Notes”, to provide for the issuance of Additional Notes in accordance with the limitations set
forth in the Indenture as of the date of the Indenture, to allow any Guarantor to execute a
supplemental indenture, to secure the Notes and/or the Note Guarantees, or to provide for the
reorganization of Regency Energy Partners as any other form of entity, in accordance with Section
5.01 of the Indenture.

     (12) Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest on, or Liquidated Damages, if any, with respect to the Notes; (ii)
default in the payment when due (at stated maturity, upon redemption or otherwise) of the principal
of, or premium, if any, on the Notes; (iii) failure by Regency Energy Partners or any of its
Restricted Subsidiaries to timely consummate repurchase offers under Section 4.10 or 4.15 of the
Indenture or to comply with Section 5.01 of the Indenture; (iv) failure by Regency Energy Partners
for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by Regency
Energy Partners or any of its Restricted Subsidiaries for 60 days after written notice to comply
with any of the other agreements in the Indenture; (vi) default under certain other agreements
relating to Indebtedness of Regency Energy Partners or any of its Restricted Subsidiaries, which
default results in the acceleration of such Indebtedness prior to its express maturity; (vii)
certain final judgments for the payment of money that remain undischarged for a period of 60 days;
(viii) certain events of bankruptcy or insolvency with respect to the Issuers or any of Regency
Energy Partners’ Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (ix)
except as permitted by the Indenture, any Note Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor
or any Person acting on its behalf denies or disaffirms its obligations under such Guarantor’s Note
Guarantee. If any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, with respect to Finance Corp., Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners that is a Significant
Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners that, taken together,
would constitute a Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default if it determines that withholding notice is in their interest, except a
Default or Event of Default relating to the payment of principal, interest or premium or Liquidated
Damages, if any. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of interest or premium or
Liquidated Damages, if any, on, or the principal of, the Notes. The Issuers and the Guarantors are
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers and the Guarantors are required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

5

 

     (13) Trustee Dealings with the Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

     (14) No Recourse Against Others. Neither the General Partner nor any director, officer,
partner, member, employee, incorporator, manager or unit holder or other owner of Equity Interest
of the Issuers or any Guarantor, as such, will have any liability for any obligations of the
Issuers or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes and the Note Guarantees. The waiver may not be
effective to waive liabilities under the federal securities laws.

     (15) Authentication. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration
Rights Agreement dated as of December 12, 2006, among the Issuers, the Guarantors and the other
parties named on the signature pages thereof or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or
more registration rights agreements, if any, among the Issuers, the Guarantors and the other
parties thereto, relating to rights given by the Issuers and the Guarantors to the purchasers of
any Additional Notes (collectively, the “Registration Rights Agreement”).

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (19) GOVERNING LAW. THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES.

     The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Attention: Chief Financial Officer

6

 

Assignment Form

To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: (Insert assignee’s legal name)

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint
	 	 
	 

	 	 

to transfer this Note on the books of the Issuers. The agent substitute another to act for him.

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                                             

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

7

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

	 	 	 
	o Section 4.10

	 	o Section 4.15

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)
	 
	 	 	 	 
	 

	 	Tax Identification No.:	 	 
	 

	 	 	 	 

Signature Guarantee*:                                                             

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

8

 

Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of this	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Global Note	 	Signature of
	 	 	in Principal Amount	 	in Principal Amount	 	following such	 	authorized officer
	 	 	of	 	of	 	decrease	 	of Trustee or
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or increase)	 	Custodian
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

9

 

NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, dated as of December 12, 2006 (the
“Indenture”), among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium, if any, and Liquidated Damages, if any, and interest on, the Notes, whether at stated
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of, premium if any, interest and Liquidated Damages, if any, on the Notes, if
any, if lawful, and the due and punctual performance of all other obligations of the Issuers to the
Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of
the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

1

 

	 	 	 	 	 
	REGENCY GAS SERVICES LP

By: Regency OLP GP, LLC, its General Partner
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata

Vice President
	 
	 	 	 	 
	REGENCY WAHA LP, LLC
	REGENCY NGL GP, LLC
	REGENCY GAS MARKETING GP, LLC
	REGENCY WAHA GP, LLC
	REGENCY INTRASTATE GAS LLC
	REGENCY MIDCON GAS LLC
	REGENCY LIQUIDS PIPELINE LLC
	REGENCY GAS GATHERING AND PROCESSING LLC
	GULF STATES TRANSMISSION CORPORATION
	REGENCY NGL MARKETING LP
	 

	 	By:
	 	Regency NGL GP, LLC,

its General Partner
	REGENCY GAS MARKETING LP
	 

	 	By:
	 	Regency Gas Marketing GP, LLC,

its General Partner
	REGENCY GAS SERVICES WAHA, LP
	 

	 	By:
	 	Regency Waha GP, LLC,

	 

	 	 	 	its General Partner
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata

Vice President

2

 

	 	 	 	 	 
	REGENCY TS GP LLC
	REGENCY FIELD SERVICES LP
	 

	 	By:
	 	Regency TS GP LLC,

its General Partner
	REGENCY GUARANTOR GP LLC
	REGENCY GUARANTOR LP
	 

	 	By:
	 	Regency Guarantor GP LLC,

its General Partner
	REGENCY OPERATING GP LLC
	REGENCY EASTEX NEWLINE LP
	 

	 	By:
	 	Regency Operating GP LLC,

its General Partner
	REGENCY OPERATING LP
	 

	 	By:
	 	Regency Operating GP LLC,

its General Partner
	REGENCY EASTEX PROTREAT I LP
	 

	 	By:
	 	Regency Operating GP LLC,

its General Partner
	REGENCY EASTEX PROTREAT II LP
	 

	 	By:
	 	Regency Operating GP LLC,

its General Partner
	REGENCY GU GP LLC
	REGENCY GAS UTILITY LP
	 

	 	By:
	 	Regency GU GP LLC,

its General Partner
	REGENCY FS GP LLC
	REGENCY FS LP
	 

	 	By:
	 	Regency FS GP LLC,

its General Partner
	REGENCY TS ACQUISITION GP LLC
	REGENCY TS ACQUISITION LP
	 

	 	By:
	 	Regency TS Acquisition GP LLC,

its General Partner
	REGENCY FN GP LLC
	REGENCY FRIO NEWLINE LP
	 

	 	By:
	 	REGENCY FN GP LLC,

its General Partner
	REGENCY TGG LLC
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata

Vice President

Dated:                                                             

3

 

[Face of Note]

CUSIP 75886AAA6

8 3/8% Senior Notes due 2013

			
	 	 	 
	No. 2
	 	$50,000,000

REGENCY ENERGY PARTNERS LP

and

REGENCY ENERGY FINANCE CORP.

promise to pay to Cede & Co., or registered assigns,

the principal sum of FIFTY MILLION DOLLARS on December 15, 2013.

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

Dated: December 12, 2006

1

 

	 	 	 	 	 	 	 	 	 
	 	 	REGENCY ENERGY PARTNERS LP
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Regency GP LP,
	 	 	 	 	its general partner
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Regency GP LLC,
	 	 	 	 	its general partner
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Stephen L. Arata
	 	 	 	 	Title:	 	Executive Vice President and Chief
	 	 	 	 	 	 	Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	REGENCY ENERGY FINANCE CORP.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Stephen L. Arata
	 	 	 	 	Title:	 	Vice President

2

 

This is one of the Notes referred to

in the within-mentioned Indenture:

	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as Trustee
	 
	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

3

 

[Back of Note]

8 3/8% Senior Notes due 2013

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE
SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2)
THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND THE NOTE
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE NOTE EVIDENCED HEREBY IS
HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT.
THE HOLDER OF THE NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (l)(A) TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), PURCHASING FOR ITS OWN ACCOUNT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A UNDER THE SECURITIES ACT, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 OF THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 50l(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN “INSTITUTIONAL
ACCREDITED INVESTOR”) THAT IS PURCHASING AT LEAST $250,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; PROVIDED THAT IN THE CASE OF A TRANSFER UNDER
CLAUSE (E) SUCH TRANSFER IS SUBJECT TO THE RECEIPT BY THE TRUSTEE OF A CERTIFICATION OF THE
TRANSFEROR AND AN OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (2) TO THE ISSUERS OR THEIR RESPECTIVE SUBSIDIARIES OR (3) UNDER AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION
AND THE INDENTURE

1

 

GOVERNING THE NOTES AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.
IF ANY RESALE OR OTHER TRANSFER OF ANY NOTE IS PROPOSED TO BE MADE UNDER CLAUSE (A)(1)(D) ABOVE
WHILE THESE TRANSFER RESTRICTIONS ARE IN FORCE THEN THE TRANSFEROR SHALL DELIVER A LETTER FROM THE
TRANSFEREE TO THE TRUSTEE WHICH SHALL PROVIDE, AMONG OTHER THINGS, THAT THE TRANSFEREE IS AN
INSTITUTIONAL ACCREDITED INVESTOR AND THAT IT IS ACQUIRING THE SECURITIES FOR INVESTMENT PURPOSES
AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT.

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), promise to pay interest on the principal amount of
this Note at 8 3/8% per annum from December 12, 2006 until maturity and shall pay the Liquidated
Damages, if any, payable pursuant to Section 4 of the Registration Rights Agreement referred to
below. The Issuers will pay interest and Liquidated Damages, if any, semi-annually in arrears on
June 15 and December 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided further that the first Interest Payment Date shall be June 15, 2007. The Issuers
will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the rate then in effect to
the extent lawful; they will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any (without
regard to any applicable grace periods), from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted interest)
and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 or December 1 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. Holders of Definitive Notes
must surrender their Notes to the Paying Agent to collect payments of principal and premium, if
any, due at maturity. The Notes will be payable as to principal, premium, if any, and Liquidated
Damages, if any, and interest at the office or agency of the Issuers maintained for such purpose
within the continental United States, or, at the option of the Issuers, payment of interest and
Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment will be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. Regency Energy Partners or any of its
Subsidiaries may act in any such capacity.

     (4) Indenture. The Issuers issued the Notes under an Indenture dated as of December 12, 2006
(the “Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the TIA.
The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act
for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be con-

2

 

trolling. The Notes are unsecured obligations of the Issuers. The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

     (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers will not
have the option to redeem the Notes prior to December 15, 2010. On or after December 15, 2010, the
Issuers may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice,
at the redemption prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the
applicable Redemption Date, if redeemed during the twelve-month period beginning on December 15 of
each year indicated below, subject to the rights of Holders of Notes on the relevant record date to
receive interest on an Interest Payment Date that is on or prior to the Redemption Date:

	 	 	 	 	 
	Year	 	Percentage
	2010
	 	 	104.188	%
	2011
	 	 	102.094	%
	2012 and thereafter
	 	 	100.000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2009, the Issuers may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture
upon not less than 30 nor more than 60 days’ notice, at a redemption price of 108.375% of the
principal amount, plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an Interest Payment Date that is on or prior to the Redemption Date), with the net
cash proceeds of one or more Equity Offerings by Regency Energy Partners; provided that at least
65% of the aggregate principal amount of Notes (including any Additional Notes) issued under the
Indenture (excluding Notes held by Regency Energy Partners and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and the redemption occurs within 90
days of the date of the closing of such Equity Offering.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2010, the Issuers may also redeem all or a part of the Notes, upon not less than 30
nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Liquidated
Damages, if any, to the Redemption Date, subject to the rights of Holders on the relevant record
date to receive interest due on an Interest Payment Date that is prior to the Redemption Date.

     For purposes of subparagraph (c) of this Paragraph 5, “Applicable Premium” means, with respect
to any Note on any Redemption Date, the greater of (1) 1.0% of the principal amount of the Note or
(2) the excess of: (a) the present value at such Redemption Date of (i) the redemption price of the
Note at December 15, 2010 (such redemption price being set forth in the table appearing in
subparagraph (a)) plus (ii) all required interest payments due on the Note through December 15,
2010 (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate
equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over (b) the principal
amount of the Note, if greater. In addition, for purposes of subparagraph (c) of this Paragraph 5,
“Treasury Rate” means, as of any Redemption Date, the yield to maturity as of the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to December 15, 2010; provided, however, that if such
period is not equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, Regency Energy Partners shall obtain the Treasury Rate by linear
interpolation (calculated to the nearest one twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
the Redemption Date to December 15, 2010, is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year will
be used.

3

 

     (d) Unless the Issuers default in the payment of the redemption price, interest and Liquidated
Damages, if any, will cease to accrue on the Notes or portions thereof called for redemption on the
applicable Redemption Date.

     (6) Mandatory Redemption.

     Except as set forth below, the Issuers are not required to make mandatory redemption or
sinking fund payments with respect to the Notes.

     (7) Repurchase at the Option of Holder.

     (a) If there is a Change of Control, the Issuers will be required to make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the
date of purchase, subject to the rights of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days
following any Change of Control, the Issuers will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

     (b) If the Issuers or a Restricted Subsidiary of Regency Energy Partners consummates any Asset
Sales, within five days of each date on which the aggregate amount of Excess Proceeds exceeds $20.0
million, the Issuers will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase the maximum principal
amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal amount plus accrued
and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the
procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and other
pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Regency Energy Partners (or such Restricted Subsidiary) may use such deficiency for any purpose
not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
then the Notes and such other pari passu Indebtedness shall be purchased on a pro rata basis.
Holders of Definitive Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer may elect to have such Notes purchased by completing the form entitled “Option of Holder to
Elect Purchase” attached to the Notes.

     (8) Notice of Redemption. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Issuers may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for
all purposes.

4

 

     (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes including Additional
Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance
with any provision of the Indenture or the Notes or the Note Guarantees may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes
including Additional Notes, if any, voting as a single class. Without the consent of any Holder of
a Note, the Indenture or the Notes or the Note Guarantees may be amended or supplemented to cure
any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in
place of certificated Notes, to provide for the assumption of the Issuers’ or a Guarantor’s
obligations to Holders of the Notes and Note Guarantees in the case of a merger or consolidation or
sale of all or substantially all of the Issuers’ or such Guarantor’s assets, as applicable, to make
any change that would provide any additional rights or benefits to the Holders of Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, to comply with
the requirements of the SEC in order to effect or maintain the qualification of the Indenture under
the TIA, to conform the text of the Indenture or the Note Guarantees to any provision of the
“Description of Notes” section of the Issuers’ Offering Memorandum to the extent that such text of
the Indenture or the Notes Guarantees was intended to reflect such provision of the “Description of
Notes”, to provide for the issuance of Additional Notes in accordance with the limitations set
forth in the Indenture as of the date of the Indenture, to allow any Guarantor to execute a
supplemental indenture, to secure the Notes and/or the Note Guarantees, or to provide for the
reorganization of Regency Energy Partners as any other form of entity, in accordance with Section
5.01 of the Indenture.

     (12) Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest on, or Liquidated Damages, if any, with respect to the Notes; (ii)
default in the payment when due (at stated maturity, upon redemption or otherwise) of the principal
of, or premium, if any, on the Notes; (iii) failure by Regency Energy Partners or any of its
Restricted Subsidiaries to timely consummate repurchase offers under Section 4.10 or 4.15 of the
Indenture or to comply with Section 5.01 of the Indenture; (iv) failure by Regency Energy Partners
for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by Regency
Energy Partners or any of its Restricted Subsidiaries for 60 days after written notice to comply
with any of the other agreements in the Indenture; (vi) default under certain other agreements
relating to Indebtedness of Regency Energy Partners or any of its Restricted Subsidiaries, which
default results in the acceleration of such Indebtedness prior to its express maturity; (vii)
certain final judgments for the payment of money that remain undischarged for a period of 60 days;
(viii) certain events of bankruptcy or insolvency with respect to the Issuers or any of Regency
Energy Partners’ Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (ix)
except as permitted by the Indenture, any Note Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor
or any Person acting on its behalf denies or disaffirms its obligations under such Guarantor’s Note
Guarantee. If any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, with respect to Finance Corp., Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners that is a Significant
Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners that, taken together,
would constitute a Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default if it determines that withholding notice is in their interest, except a
Default or Event of Default relating to the payment of principal, interest or premium or Liquidated
Damages, if any. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of interest or premium or
Liquidated Damages, if any, on, or the principal of, the Notes. The Issuers and the Guarantors are
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers and the Guarantors are required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

5

 

     (13) Trustee Dealings with the Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

     (14) No Recourse Against Others. Neither the General Partner nor any director, officer,
partner, member, employee, incorporator, manager or unit holder or other owner of Equity Interest
of the Issuers or any Guarantor, as such, will have any liability for any obligations of the
Issuers or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes and the Note Guarantees. The waiver may not be
effective to waive liabilities under the federal securities laws.

     (15) Authentication. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration
Rights Agreement dated as of December 12, 2006, among the Issuers, the Guarantors and the other
parties named on the signature pages thereof or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or
more registration rights agreements, if any, among the Issuers, the Guarantors and the other
parties thereto, relating to rights given by the Issuers and the Guarantors to the purchasers of
any Additional Notes (collectively, the “Registration Rights Agreement”).

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (19) GOVERNING LAW. THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES.

     The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Attention: Chief Financial Officer

6

 

Assignment Form

To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: (Insert assignee’s legal name)

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint

	 	 
	 

	 	 

to transfer this Note on the books of the Issuers. The agent substitute another to act for him.

	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Your Signature:
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)

	 	 	 	 	 
	Signature Guarantee*:

	 	 
	 	 
	 	 	 	 	 

     • Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

7

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

	 	 	 
	o Section 4.10

	 	o Section 4.15

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                    

	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Your Signature:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)
	 
	 	 	 	 	 	 
	 	 	Tax Identification No.:	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	Signature Guarantee*:

	 	 
	 	 
	 	 	 	 	 

     • Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

8

 

Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of this	 	 	 	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	Global Note	 	 	Signature of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	following such	 	 	authorized officer	 
	 	 	of	 	 	of	 	 	decrease	 	 	of Trustee or	 
	Date of Exchange	 	this Global Note	 	 	this Global Note	 	 	(or increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

* This schedule should be included only if the Note is issued in global form.

9

 

NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, dated as of December 12, 2006 (the
“Indenture”), among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium, if any, and Liquidated Damages, if any, and interest on, the Notes, whether at stated
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of, premium if any, interest and Liquidated Damages, if any, on the Notes, if
any, if lawful, and the due and punctual performance of all other obligations of the Issuers to the
Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of
the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

1

 

	 	 	 	 	 	 	 	 	 
	 	 	REGENCY GAS SERVICES LP
	 	 	By: Regency OLP GP, LLC, its General Partner
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Stephen L. Arata	 	 
	 	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	REGENCY WAHA LP, LLC
	 	 	REGENCY NGL GP, LLC
	 	 	REGENCY GAS MARKETING GP, LLC
	 	 	REGENCY WAHA GP, LLC
	 	 	REGENCY INTRASTATE GAS LLC
	 	 	REGENCY MIDCON GAS LLC
	 	 	REGENCY LIQUIDS PIPELINE LLC
	 	 	REGENCY GAS GATHERING AND PROCESSING LLC
	 	 	GULF STATES TRANSMISSION CORPORATION
	 	 	REGENCY NGL MARKETING LP
	 

	 	 	 	By:
	 	Regency NGL GP, LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY GAS MARKETING LP
	 

	 	 	 	By:
	 	Regency Gas Marketing GP, LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY GAS SERVICES WAHA, LP
	 

	 	 	 	By:
	 	Regency Waha GP, LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Stephen L. Arata	 	 
	 	 	 	 	Vice President	 	 

2

 

	 	 	 	 	 	 	 	 	 
	 	 	REGENCY TS GP LLC
	 	 	REGENCY FIELD SERVICES LP
	 

	 	 	 	By:
	 	Regency TS GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY GUARANTOR GP LLC
	 	 	REGENCY GUARANTOR LP
	 

	 	 	 	By:
	 	Regency Guarantor GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY OPERATING GP LLC
	 	 	REGENCY EASTEX NEWLINE LP
	 

	 	 	 	By:
	 	Regency Operating GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY OPERATING LP
	 

	 	 	 	By:
	 	Regency Operating GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY EASTEX PROTREAT I LP
	 

	 	 	 	By:
	 	Regency Operating GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY EASTEX PROTREAT II LP
	 

	 	 	 	By:
	 	Regency Operating GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY GU GP LLC
	 	 	REGENCY GAS UTILITY LP
	 

	 	 	 	By:
	 	Regency GU GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY FS GP LLC
	 	 	REGENCY FS LP
	 

	 	 	 	By:
	 	Regency FS GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY TS ACQUISITION GP LLC
	 	 	REGENCY TS ACQUISITION LP
	 

	 	 	 	By:
	 	Regency TS Acquisition GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY FN GP LLC
	 	 	REGENCY FRIO NEWLINE LP
	 

	 	 	 	By:
	 	REGENCY FN GP LLC,	 	 
	 

	 	 	 	 	 	its General Partner	 	 
	 	 	REGENCY TGG LLC
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Stephen L. Arata	 	 
	 	 	 	 	Vice President	 	 

	 	 	 	 	 
	Dated:

	 	 
	 	 
	 	 	 	 	 

3

 

[Face of Note]

CUSIP USU75857AA72

8 3/8% Senior Notes due 2013

			
	No. 3
	 	$0

REGENCY ENERGY PARTNERS LP

and

REGENCY ENERGY FINANCE CORP.

promise to pay to Cede & Co., , or registered assigns,

the principal sum of ZERO DOLLARS on December 15, 2013.

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

Dated: December 12, 2006

1

 

	 	 	 	 	 
	REGENCY ENERGY PARTNERS LP
	 
	 	 	 	 
	By:	 	Regency GP LP,
	 	 	its general partner
	 
	 	 	 	 
	By:	 	Regency GP LLC,
	 	 	its general partner
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 

	 	Name:
	 	Stephen L. Arata
	 

	 	Title:
	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	REGENCY ENERGY FINANCE CORP.
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 

	 	Name:
	 	Stephen L. Arata
	 

	 	Title:
	 	Vice President

2

 

	 	 	 
	This is one of the Notes referred to
	in the within-mentioned Indenture:
	 
	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as Trustee
	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	Authorized Signatory

3

 

[Back of Note]

8 3/8% Senior Notes due 2013

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE
SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2)
THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND THE NOTE
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE NOTE EVIDENCED HEREBY IS
HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT.
THE HOLDER OF THE NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (l)(A) TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), PURCHASING FOR ITS OWN ACCOUNT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A UNDER THE SECURITIES ACT, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 OF THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 50l(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN “INSTITUTIONAL
ACCREDITED INVESTOR”) THAT IS PURCHASING AT LEAST $250,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; PROVIDED THAT IN THE CASE OF A TRANSFER UNDER
CLAUSE (E) SUCH TRANSFER IS SUBJECT TO THE RECEIPT BY THE TRUSTEE OF A CERTIFICATION OF THE
TRANSFEROR AND AN OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (2) TO THE ISSUERS OR THEIR RESPECTIVE SUBSIDIARIES OR (3) UNDER AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION
AND THE INDENTURE

1

 

GOVERNING THE NOTES AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.
IF ANY RESALE OR OTHER TRANSFER OF ANY NOTE IS PROPOSED TO BE MADE UNDER CLAUSE (A)(1)(D) ABOVE
WHILE THESE TRANSFER RESTRICTIONS ARE IN FORCE THEN THE TRANSFEROR SHALL DELIVER A LETTER FROM THE
TRANSFEREE TO THE TRUSTEE WHICH SHALL PROVIDE, AMONG OTHER THINGS, THAT THE TRANSFEREE IS AN
INSTITUTIONAL ACCREDITED INVESTOR AND THAT IT IS ACQUIRING THE SECURITIES FOR INVESTMENT PURPOSES
AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT.

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated.

     (1) Interest. Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), promise to pay interest on the principal amount of
this Note at 8 3/8% per annum from December 12, 2006 until maturity and shall pay the Liquidated
Damages, if any, payable pursuant to Section 4 of the Registration Rights Agreement referred to
below. The Issuers will pay interest and Liquidated Damages, if any, semi-annually in arrears on
June 15 and December 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided further that the first Interest Payment Date shall be June 15, 2007. The Issuers
will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the rate then in effect to
the extent lawful; they will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any (without
regard to any applicable grace periods), from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted interest)
and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 or December 1 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. Holders of Definitive Notes
must surrender their Notes to the Paying Agent to collect payments of principal and premium, if
any, due at maturity. The Notes will be payable as to principal, premium, if any, and Liquidated
Damages, if any, and interest at the office or agency of the Issuers maintained for such purpose
within the continental United States, or, at the option of the Issuers, payment of interest and
Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment will be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. Regency Energy Partners or any of its
Subsidiaries may act in any such capacity.

     (4) Indenture. The Issuers issued the Notes under an Indenture dated as of December 12, 2006
(the “Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the TIA.
The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act
for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be con-

2

 

trolling. The Notes are unsecured obligations of the Issuers. The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

     (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers will not
have the option to redeem the Notes prior to December 15, 2010. On or after December 15, 2010, the
Issuers may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice,
at the redemption prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the
applicable Redemption Date, if redeemed during the twelve-month period beginning on December 15 of
each year indicated below, subject to the rights of Holders of Notes on the relevant record date to
receive interest on an Interest Payment Date that is on or prior to the Redemption Date:

	 	 	 	 	 
	Year	 	Percentage	 
	2010
	 	 	104.188	%
	2011
	 	 	102.094	%
	2012 and thereafter
	 	 	100.000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2009, the Issuers may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture
upon not less than 30 nor more than 60 days’ notice, at a redemption price of 108.375% of the
principal amount, plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on an Interest Payment Date that is on or prior to the Redemption Date), with the net
cash proceeds of one or more Equity Offerings by Regency Energy Partners; provided that at least
65% of the aggregate principal amount of Notes (including any Additional Notes) issued under the
Indenture (excluding Notes held by Regency Energy Partners and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and the redemption occurs within 90
days of the date of the closing of such Equity Offering.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to December 15, 2010, the Issuers may also redeem all or a part of the Notes, upon not less than 30
nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Liquidated
Damages, if any, to the Redemption Date, subject to the rights of Holders on the relevant record
date to receive interest due on an Interest Payment Date that is prior to the Redemption Date.

     For purposes of subparagraph (c) of this Paragraph 5, “Applicable Premium” means, with respect
to any Note on any Redemption Date, the greater of (1) 1.0% of the principal amount of the Note or
(2) the excess of: (a) the present value at such Redemption Date of (i) the redemption price of the
Note at December 15, 2010 (such redemption price being set forth in the table appearing in
subparagraph (a)) plus (ii) all required interest payments due on the Note through December 15,
2010 (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate
equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over (b) the principal
amount of the Note, if greater. In addition, for purposes of subparagraph (c) of this Paragraph 5,
“Treasury Rate” means, as of any Redemption Date, the yield to maturity as of the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to December 15, 2010; provided, however, that if such
period is not equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, Regency Energy Partners shall obtain the Treasury Rate by linear
interpolation (calculated to the nearest one twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
the Redemption Date to December 15, 2010, is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year will
be used.

3

 

     (d) Unless the Issuers default in the payment of the redemption price, interest and Liquidated
Damages, if any, will cease to accrue on the Notes or portions thereof called for redemption on the
applicable Redemption Date.

     (6) Mandatory Redemption.

     Except as set forth below, the Issuers are not required to make mandatory redemption or
sinking fund payments with respect to the Notes.

     (7) Repurchase at the Option of Holder.

     (a) If there is a Change of Control, the Issuers will be required to make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the
date of purchase, subject to the rights of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days
following any Change of Control, the Issuers will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

     (b) If the Issuers or a Restricted Subsidiary of Regency Energy Partners consummates any Asset
Sales, within five days of each date on which the aggregate amount of Excess Proceeds exceeds $20.0
million, the Issuers will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase the maximum principal
amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal amount plus accrued
and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the
procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and other
pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Regency Energy Partners (or such Restricted Subsidiary) may use such deficiency for any purpose
not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
then the Notes and such other pari passu Indebtedness shall be purchased on a pro rata basis.
Holders of Definitive Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer may elect to have such Notes purchased by completing the form entitled “Option of Holder to
Elect Purchase” attached to the Notes.

     (8) Notice of Redemption. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Issuers may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for
all purposes.

4

 

     (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or the
Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes including Additional
Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance
with any provision of the Indenture or the Notes or the Note Guarantees may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes
including Additional Notes, if any, voting as a single class. Without the consent of any Holder of
a Note, the Indenture or the Notes or the Note Guarantees may be amended or supplemented to cure
any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in
place of certificated Notes, to provide for the assumption of the Issuers’ or a Guarantor’s
obligations to Holders of the Notes and Note Guarantees in the case of a merger or consolidation or
sale of all or substantially all of the Issuers’ or such Guarantor’s assets, as applicable, to make
any change that would provide any additional rights or benefits to the Holders of Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, to comply with
the requirements of the SEC in order to effect or maintain the qualification of the Indenture under
the TIA, to conform the text of the Indenture or the Note Guarantees to any provision of the
“Description of Notes” section of the Issuers’ Offering Memorandum to the extent that such text of
the Indenture or the Notes Guarantees was intended to reflect such provision of the “Description of
Notes”, to provide for the issuance of Additional Notes in accordance with the limitations set
forth in the Indenture as of the date of the Indenture, to allow any Guarantor to execute a
supplemental indenture, to secure the Notes and/or the Note Guarantees, or to provide for the
reorganization of Regency Energy Partners as any other form of entity, in accordance with Section
5.01 of the Indenture.

     (12) Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest on, or Liquidated Damages, if any, with respect to the Notes; (ii)
default in the payment when due (at stated maturity, upon redemption or otherwise) of the principal
of, or premium, if any, on the Notes; (iii) failure by Regency Energy Partners or any of its
Restricted Subsidiaries to timely consummate repurchase offers under Section 4.10 or 4.15 of the
Indenture or to comply with Section 5.01 of the Indenture; (iv) failure by Regency Energy Partners
for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by Regency
Energy Partners or any of its Restricted Subsidiaries for 60 days after written notice to comply
with any of the other agreements in the Indenture; (vi) default under certain other agreements
relating to Indebtedness of Regency Energy Partners or any of its Restricted Subsidiaries, which
default results in the acceleration of such Indebtedness prior to its express maturity; (vii)
certain final judgments for the payment of money that remain undischarged for a period of 60 days;
(viii) certain events of bankruptcy or insolvency with respect to the Issuers or any of Regency
Energy Partners’ Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (ix)
except as permitted by the Indenture, any Note Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor
or any Person acting on its behalf denies or disaffirms its obligations under such Guarantor’s Note
Guarantee. If any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, with respect to Finance Corp., Regency
Energy Partners or any Restricted Subsidiary of Regency Energy Partners that is a Significant
Subsidiary or any group of Restricted Subsidiaries of Regency Energy Partners that, taken together,
would constitute a Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default if it determines that withholding notice is in their interest, except a
Default or Event of Default relating to the payment of principal, interest or premium or Liquidated
Damages, if any. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of interest or premium or
Liquidated Damages, if any, on, or the principal of, the Notes. The Issuers and the Guarantors are
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers and the Guarantors are required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

5

 

     (13) Trustee Dealings with the Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

     (14) No Recourse Against Others. Neither the General Partner nor any director, officer,
partner, member, employee, incorporator, manager or unit holder or other owner of Equity Interest
of the Issuers or any Guarantor, as such, will have any liability for any obligations of the
Issuers or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes and the Note Guarantees. The waiver may not be
effective to waive liabilities under the federal securities laws.

     (15) Authentication. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration
Rights Agreement dated as of December 12, 2006, among the Issuers, the Guarantors and the other
parties named on the signature pages thereof or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or
more registration rights agreements, if any, among the Issuers, the Guarantors and the other
parties thereto, relating to rights given by the Issuers and the Guarantors to the purchasers of
any Additional Notes (collectively, the “Registration Rights Agreement”).

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (19) GOVERNING LAW. THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES.

     The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Regency Energy Partners LP

Regency Energy Finance Corp.

1700 Pacific Avenue, Suite 2900

Dallas, TX 75201

Attention: Chief Financial Officer

6

 

Assignment Form

To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: (Insert assignee’s legal name)

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint

	 	 
	 

	 	 

to transfer this Note on the books of the Issuers. The agent substitute another to act for him.

Date:                                                             

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 
	 	 
	(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                                             

     * Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

7

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

	 	 	 
	o Section 4.10
	 	o Section 4.15

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 
	 	 
	(Sign exactly as your name appears on the face of this Note)
	 
	 	 
	Tax Identification No.:
	 	 
	 

	 	 

Signature Guarantee*:                                                             

     * Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

8

 

Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of this	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Global Note	 	Signature of
	 	 	in Principal Amount	 	in Principal Amount	 	following such	 	authorized officer
	 	 	of	 	of	 	decrease	 	of Trustee or
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or increase)	 	Custodian
	 

	 	 	 	 	 	 	 	 

* This schedule should be included only if the Note is issued in global form.

9

 

NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, dated as of December 12, 2006 (the
“Indenture”), among Regency Energy Partners LP, a Delaware limited partnership (“Regency Energy
Partners”), and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together
with Regency Energy Partners, the “Issuers”), the Guarantors party thereto and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium, if any, and Liquidated Damages, if any, and interest on, the Notes, whether at stated
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of, premium if any, interest and Liquidated Damages, if any, on the Notes, if
any, if lawful, and the due and punctual performance of all other obligations of the Issuers to the
Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of
the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and directs the Trustee,
on behalf of such Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

1

 

	 	 	 	 	 
	REGENCY GAS SERVICES LP
	By:	 	Regency OLP GP, LLC, its General Partner
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata
	 	 	Vice President
	 
	 	 	 	 
	REGENCY WAHA LP, LLC
	REGENCY NGL GP, LLC
	REGENCY GAS MARKETING GP, LLC
	REGENCY WAHA GP, LLC
	REGENCY INTRASTATE GAS LLC
	REGENCY MIDCON GAS LLC
	REGENCY LIQUIDS PIPELINE LLC
	REGENCY GAS GATHERING AND PROCESSING LLC
	GULF STATES TRANSMISSION CORPORATION
	REGENCY NGL MARKETING LP
	 

	 	By:
	 	Regency NGL GP, LLC,
	 

	 	 	 	its General Partner
	REGENCY GAS MARKETING LP
	 

	 	By:
	 	Regency Gas Marketing GP, LLC,
	 

	 	 	 	its General Partner
	REGENCY GAS SERVICES WAHA, LP
	 

	 	By:
	 	Regency Waha GP, LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata
	 	 	Vice President

2

 

	 	 	 	 	 
	REGENCY TS GP LLC
	REGENCY FIELD SERVICES LP
	 

	 	By:
	 	Regency TS GP LLC,
	 

	 	 	 	its General Partner
	REGENCY GUARANTOR GP LLC
	REGENCY GUARANTOR LP
	 

	 	By:
	 	Regency Guarantor GP LLC,
	 

	 	 	 	its General Partner
	REGENCY OPERATING GP LLC
	REGENCY EASTEX NEWLINE LP
	 

	 	By:
	 	Regency Operating GP LLC,
	 

	 	 	 	its General Partner
	REGENCY OPERATING LP
	 

	 	By:
	 	Regency Operating GP LLC,
	 

	 	 	 	its General Partner
	REGENCY EASTEX PROTREAT I LP
	 

	 	By:
	 	Regency Operating GP LLC,
	 

	 	 	 	its General Partner
	REGENCY EASTEX PROTREAT II LP
	 

	 	By:
	 	Regency Operating GP LLC,
	 

	 	 	 	its General Partner
	REGENCY GU GP LLC
	REGENCY GAS UTILITY LP
	 

	 	By:
	 	Regency GU GP LLC,
	 

	 	 	 	its General Partner
	REGENCY FS GP LLC
	REGENCY FS LP
	 

	 	By:
	 	Regency FS GP LLC,
	 

	 	 	 	its General Partner
	REGENCY TS ACQUISITION GP LLC
	REGENCY TS ACQUISITION LP
	 

	 	By:
	 	Regency TS Acquisition GP LLC,
	 

	 	 	 	its General Partner
	REGENCY FN GP LLC
	REGENCY FRIO NEWLINE LP
	 

	 	By:
	 	REGENCY FN GP LLC,
	 

	 	 	 	its General Partner
	REGENCY TGG LLC
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Stephen L. Arata
	 	 	Vice President

Dated:                                                             

3

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