Document:

exv10w4

Exhibit 10.4

Execution Version

AREA OF MUTUAL INTEREST AGREEMENT

     THIS AREA OF MUTUAL INTEREST AGREEMENT, dated as of March 17, 2009 (this “Agreement”), is
entered into by and among Regency Energy Partners LP, a Delaware limited partnership (the “MLP”),
RIGS Haynesville Partnership Co., a Delaware general partnership (the “Company”), Regency
Haynesville Intrastate Gas LLC, a Delaware limited liability company (“Regency HIG”), Alinda Gas
Pipeline I, L.P., a Delaware limited partnership (“Alinda Investor 1”) and Alinda Gas Pipeline II,
L.P., a Delaware limited partnership (“Alinda Investor 2,” and collectively with Alinda Investor 1,
the “Alinda Investors”). The parties to this Agreement are collectively referred to as the
“Parties” and individually as a “Party.” Capitalized terms used but not defined herein have the
meanings ascribed to them in that certain Contribution Agreement, dated as of February 26, 2009, by
and among Regency HIG, the Company, General Electric Capital Corporation, a Delaware corporation,
Alinda Investor 1 and Alinda Investor 2 (the “Contribution Agreement”).

RECITALS:

     WHEREAS, upon the Closing, (a) Regency HIG, an indirect wholly owned subsidiary of the MLP,
will contribute a 99.999% limited partnership interest in Regency Intrastate Gas LP (“RIGS”) to the
Company, (b) RIGS SPE LLC, an indirect wholly owned subsidiary of the MLP, will contribute a 0.001%
general partnership interest in RIGS to RIGS GP LLC, a wholly owned subsidiary of the Company, and
(c) the Company will issue the GP Units and pay the Regency Closing Payment to Regency HIG, in each
case as described in the Contribution Agreement; and

     WHEREAS, pursuant to the Contribution Agreement, this Agreement is to be executed and
delivered at Closing.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

     Section 1. Creation of AMI Opportunity.

     (a) Certain Definitions.

          “AMI Acquisition” means the acquisition of any AMI Acquisition Assets.

          “AMI Acquisition Assets” means, with respect to any AMI Acquisition Opportunity, the assets
(including, without limitation, the Applicable Assets included within such assets) and equity or
other ownership interests subject to such AMI Acquisition Opportunity.

          “AMI Acquisition Opportunity” means the opportunity to acquire either of the following:

          (i) Assets (which includes Applicable Assets) from which 80% or more of the gross revenues
derived from such Assets (during the fiscal year ended immediately prior to the

 

 

year in which the acquisition in question is to occur) is derived from the following two types
of assets combined: (1) natural gas transported on such Applicable Assets that was either received
into such Applicable Assets at receipt points located within the AMI Area or delivered from such
Applicable Assets at delivery points located within the AMI Area and/or (2) natural gas storage
infrastructure assets included in such Applicable Assets; or

          (ii) equity or other ownership interests of an entity which owns Applicable Assets from which
80% or more of the gross revenues derived from such entity’s Assets, on a consolidated basis
(during the fiscal year ended immediately prior to the year in which the acquisition in question is
to occur) is derived from (1) natural gas transported on such Applicable Assets that was either
received into such Applicable Assets at receipt points located within the AMI Area or delivered
from such Applicable Assets at delivery points located within the AMI Area and/or (2) natural gas
storage infrastructure assets included in such Applicable Assets.

          For the avoidance of doubt, any portion of the “Assets” referred to in clause (i) above and
any subsidiary or affiliate of the “entity” referred to in clause (ii) above shall not, on a stand
alone basis, constitute an AMI Acquisition Opportunity.

          “AMI Area” means that portion of the area within the State of Louisiana that is designated as
the “AMI Area” on Exhibit A hereto.

          “AMI Assets” means all AMI Acquisition Assets and AMI Greenfield Assets.

          “AMI Greenfield Assets” means, with respect to any AMI Greenfield Opportunity, the assets
subject to such AMI Greenfield Opportunity.

          “AMI Greenfield Opportunity” means the opportunity to construct and develop (as opposed to an
acquisition of) additional Applicable Assets other than any Company Specific Opportunity.

          “AMI Opportunity” means any AMI Acquisition Opportunity or AMI Greenfield Opportunity.

          “Applicable Assets” means interstate and/or intrastate natural gas transportation
infrastructure assets (but specifically excluding any Natural Gas Gathering Infrastructure Assets,
natural gas treating infrastructure assets and/or natural gas processing infrastructure assets) and
natural gas storage infrastructure assets that are located within the AMI Area.

          “Assets” means assets of any type or nature, including, without limitation, Applicable Assets.

          “Available Capacity” means the maximum quantity of natural gas that can be transported in a
given period of time under normal operating conditions.

          “Change of Control Event” means any date on which the Ultimate Parent (as defined in the
Company Partnership Agreement) of Alinda Investor I Parent and of Alinda Investor II Parent
collectively no longer possesses, directly or indirectly, through one or more

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intermediaries, (i) more than 25% of the outstanding voting interest in the Company and (ii)
more than 25% of the economic or beneficial interest in the Company.

          “Company Specific Opportunity” means any intrastate and/or interstate natural gas
transportation infrastructure assets the sole purpose of which are to increase the Available
Capacity of the Company’s or RIGS’ existing natural gas transportation infrastructure assets.

          “Management Company” means Regency Employees Management LLC.

          “MC Member” shall have the meaning ascribed to such term in the Company Partnership Agreement.

          “Natural Gas Gathering Infrastructure Assets” means pipelines and other facilities (including
all interconnections, laterals, storage facilities, meters, dehydration facilities, compression
facilities, junction heaters, separators, electric power lines, communication cables, roads and
other related facilities and equipment, including all easements located thereon) used to transport
gas from a current production facility to a transmission line or main line.

          “RIGS System” means the gas transportation system consisting of the intrastate pipeline owned
by RIGS as of the Closing Date and as thereafter expanded from time-to-time.

          “Services Agreement” means the Master Services Agreement between the Partnership and the
Management Company, as amended or modified from time to time, pursuant to which the Management
Company manages the day-to-day operations of the Company.

          “Subject Person” means the MLP, any direct or indirect wholly owned subsidiary of the MLP and
any Affiliate of the MLP that is directly or indirectly controlled by the MLP; provided, that
“Subject Person” shall not include the Company, RIGS or any of their direct or indirect
subsidiaries or any Person that directly or indirectly owns any interest in the MLP.

          “Termination Date” means the earlier to occur of (i) the first date on which the MLP and/or
its Affiliates, directly or indirectly, owns 75% or more of the GP Units in the Company, (ii) the
date on which the Services Agreement is terminated and (iii) the occurrence of a Change of Control
Event.

     (b) Term of this Agreement. The term of this Agreement (the “Term”) shall begin on
the Closing Date and shall end on the Termination Date. During the Term, the MLP shall, and shall
cause each other Subject Person to, comply with all of the provisions of this Agreement and each
other Party shall comply with all of the provisions of this Agreement. For the avoidance of doubt,
this Agreement shall terminate for all purposes upon the expiration of the Term.

     (c) AMI Acquisition Opportunities.

          (i) In the event that a Subject Person identifies an AMI Acquisition Opportunity that such
Subject Person desires to pursue or reasonably believes the Company should pursue, such Subject
Person shall promptly notify the Alinda Investors of such opportunity and shall, subject to the
Alinda Investors executing and delivering to the Subject Person a confidentiality agreement in form
and substance reasonably satisfactory to the Subject

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Person, (A) make available to the Alinda Investors all information in its possession related
to such AMI Acquisition Opportunity as may be reasonably requested by the Alinda Investors from
time to time, including all information concerning and analysis of the business, operations and
finances of the applicable AMI Acquisition Assets and the terms of any proposed acquisition
agreement, (B) frequently consult with the Alinda Investors in evaluating the AMI Acquisition
Opportunity and (C) keep the Alinda Investors reasonably informed as to the status of the AMI
Acquisition Opportunity to the extent requested by the Alinda Investors from time-to-time, in each
case, subject to any confidentiality restrictions applicable to such Subject Person. Each Subject
Person shall use commercially reasonably efforts to cause any confidentiality agreement entered
into by such Subject Person in connection with any AMI Acquisition Opportunity to allow disclosures
of confidential information to the Alinda Investors.

          (ii) If the Subject Person executes an acquisition agreement for any AMI Acquisition
Opportunity, it shall use commercially reasonable efforts to cause the applicable acquisition
agreement and all other related agreements and materials (including due diligence materials) (A) to
be fully assignable to the Company without the consent of any other Person and (B) to be promptly
delivered to the Alinda Investors. The Alinda Investors shall have the lesser of (x) 15 days
following the delivery to the Alinda Investors of a complete and accurate copy of the applicable
acquisition agreement and all other related agreements in the Subject Person’s possession, or (y)
the number of days between the delivery of such agreements and the anticipated closing date
thereunder in which to cause the Company to elect to purchase the applicable AMI Acquisition Assets
in accordance with the terms of the Company Partnership Agreement (the “AMI Acquisition Election
Period”).

          (iii) If the Alinda Investors elect to cause the Company to acquire the AMI Acquisition
Opportunity, the Subject Person shall, to the extent permitted by the applicable acquisition
agreement and other related agreements, assign its rights thereunder and related materials
(including due diligence materials) to the Company, and the Company shall assume all of the Subject
Person’s rights and obligations thereunder and (whether or not such agreements can be assigned)
agree to protect, defend, indemnify and hold harmless such Subject Person from all liabilities
arising out of or related to such acquisition agreement and related agreements. In addition, at
the time of such assignment of the applicable acquisition agreement, the Company shall reimburse
the Subject Person for all costs and expenses incurred by such Subject Person (and its Affiliates)
in connection with such AMI Acquisition Opportunity. If the Alinda Investors elect to cause the
Company to acquire the AMI Acquisition Opportunity but the Subject Person is unable to assign the
applicable acquisition agreement to the Company, then the Subject Person shall hold the applicable
acquisition and related agreements in trust for the benefit of the Company, and, at the time of
such election, the Company shall reimburse the Subject Person (and its Affiliates) for all costs
and expenses incurred by such Subject Person (and its Affiliates) in connection with such AMI
Acquisition Opportunity. In addition, the Subject Person shall use commercially reasonable efforts
to cause the AMI Acquisition Assets to be assigned to the Company at the closing or as soon as
reasonably practicable thereafter and shall (at the Company’s expense and direction) use
commercially reasonable efforts to assign to the Company (or enforce for the benefit of the
Company) all of the benefits of the applicable agreements, and, upon such assignment of AMI
Acquisition Assets, the Company shall reimburse such Subject Person for any additional costs and
expenses incurred by such Subject

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Person (and its Affiliates) in connection with the acquisition and assignment of such AMI
Acquisition Assets. If the Subject Person is unable to assign the AMI Acquisition Assets at the
closing, the Subject Person shall hold such AMI Acquisition Assets in trust for the benefit of
Company, and the Company shall reimburse the Subject Person for all costs and expenses incurred by
such Subject Person (and its Affiliates) in connection with such AMI Acquisition Assets. Any
assignment of the applicable acquisition agreement, related agreements, materials or AMI
Acquisition Assets pursuant to this Section 1(c) by a Subject Person to the Company shall
be on an “AS IS, WHERE IS” basis, without any representations, warranties, covenants,
indemnification or other agreements given by any Subject Person other than that all of the rights
of the Subject Person in the assigned agreements or AMI Acquisition Assets is free of all Liens
arising by, through or under such Subject Person but not otherwise.

          (iv) With respect to any particular AMI Acquisition Assets, any Subject Person and its
Affiliates shall be free to pursue such AMI Acquisition Assets and such AMI Acquisition Assets
shall no longer be subject to this Agreement if the Alinda Investors do not elect to cause the
Company to acquire the AMI Acquisition Opportunity prior to the expiration of the AMI Acquisition
Election Period.

     (d) AMI Greenfield Opportunities.

          (i) In the event a Subject Person identifies an AMI Greenfield Opportunity that such Subject
Person desires to pursue or reasonably believes the Company should pursue, such Subject Person
shall promptly notify the Company of such opportunity and provide the Company all information in
its possession related thereto.

          (ii) The Company shall have the exclusive right to purse the AMI Greenfield Opportunity until
such time as there is a good faith, irreconcilable and material disagreement between the Alinda
Investors and any Subject Person on the design, revenue or cost structure or risk profile for or
other material matter relating to the AMI Greenfield Opportunity (a “Trigger Event”). If a Trigger
Event occurs, then any Subject Person and its Affiliates shall be free to pursue such AMI
Greenfield Opportunity without the participation by the Company or the Alinda Investors. If,
following a Trigger Event, a Subject Person pursues an AMI Greenfield Opportunity outside of the
Partnership, then such Subject Person and the Company (without the participation of the MC Member
designated by Regency HIG) shall negotiate in good faith to determine the amount of the costs and
expenses incurred by the Company with respect to such AMI Greenfield Opportunity to be reimbursed
by such Subject Person, if any, and the timing thereof. In the event that, during the continued
development of the AMI Greenfield Opportunity the Subject Person modifies the AMI Greenfield
Opportunity in such a manner consistent with the position of the Alinda Investors in the dispute
between the Alinda Investors and the Subject Person that resulted in the Trigger Event, then such
opportunity shall become a new AMI Greenfield Opportunity subject to the provisions in Section
1(d)(i) and this Section 1(d)(ii), and the Alinda Investors shall have 30 days after
receipt of notice of such new AMI Greenfield Opportunity to (x) cause the Company to elect to
pursue such AMI Greenfield Opportunity, and (y) (if the Alinda Investors cause the Company to so
elect) reimburse the Subject Person for all of its costs and expenses associated with such AMI
Greenfield Opportunity (equitability adjusted to account for any costs and expenses that would not
have been incurred with respect to such AMI Greenfield Opportunity but for the Subject Person’s
decision to pursue the AMI Greenfield

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Opportunity in a manner inconsistent with the position of the Alinda Investors in the dispute
between the Alinda Investors and the Subject Person that resulted in the Trigger Event); provided,
that if the Alinda Investors fail to cause the Company to make such election or reimburse the
Subject Person for such costs and expenses during such 30 day period, then the Company shall be
deemed to have waived any rights under this Agreement to participate in such new AMI Greenfield
Opportunity and the Subject Person shall be free to pursue such AMI Greenfield Opportunity without
the participation by the Company or the Alinda Investors.

     (e) Scope of Obligation to Offer. The MLP and any other Subject Person shall only be
required to offer AMI Acquisition Assets and AMI Greenfield Assets to the Company for purchase or
development, as applicable, by the Company upon the terms and conditions contained in this
Section 1. Except as provided in this Section 1, each Subject Person shall be free
to engage in any business activity whatsoever, including those that may be in direct competition
with the Company. For the avoidance of doubt, the Parties hereby acknowledge and agree that the
obligations of the Parties set forth in Section 1 shall not apply to any Company Specific
Opportunity.

     (f) Non-Compete.

          (i) If and for so long as the Alinda Investors are participating with a Subject Person in the
analysis of an identified AMI Acquisition Opportunity pursuant to Section 1(c) and
thereafter if the Alinda Investors have caused the Company to acquire the AMI Acquisition Company,
then neither of the Alinda Investors shall pursue such AMI Acquisition Opportunity and each of
Alinda Investor 1 and Alinda Investor 2 shall cause Alinda Investor I Parent and Alinda Investor II
Parent, respectively, to not pursue such AMI Acquisition Opportunity directly or through a Person
directly or indirectly wholly owned by Alinda Investor I Parent and Alinda Investor II Parent,
respectively, formed solely for the purpose of pursuing and acquiring such AMI Acquisition
Opportunity.

          (ii) If the Company is pursuing an AMI Greenfield Opportunity, then until the occurrence of a
Trigger Event, neither of the Alinda Investors shall pursue such AMI Greenfield Opportunity and
each of Alinda Investor 1 and Alinda Investor 2 shall cause Alinda Investor I Parent and Alinda
Investor II Parent, respectively, to not pursue such AMI Greenfield Opportunity directly or through
a Person directly or indirectly wholly owned by Alinda Investor I Parent and Alinda Investor II
Parent, respectively, formed solely for the purpose of pursuing and acquiring such AMI Greenfield
Opportunity.

     Section 2. Confidentiality. Each Party covenants and agrees that all information submitted to
it by any Subject Person under this Agreement will be considered proprietary, confidential and the
property of the Subject Person and will be used only for the purpose of determining whether or not
to exercise its rights in Section 1 and, if such election is exercised, for use in the
development and operation of the applicable AMI Opportunity; provided, however such information
shall become the property of the Company at such time that the Company elects to pursue an AMI
Opportunity as provided in Section 1; provided, further, if a Trigger Event occurs with
respect to any AMI Greenfield Opportunity, any applicable information shall revert back to the
applicable Subject Person.

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     Section 3. Binding Effect. This Agreement will be binding upon, and will inure to the benefit
of, the Parties and their respective successors, permitted assigns and legal representatives and
each of the Partners shall cause the obligations under this Agreement to be assumed by any its
successors or assigns of any interest in the Company.

     Section 4. No Third Party Rights. The provisions of this Agreement are intended to bind the
Parties as to each other and are not intended to and do not create rights in any other person or
confer upon any other person any benefits, rights or remedies and no person is or is intended to be
a third party beneficiary of any of the provisions of this Agreement.

     Section 5. No Waiver. No waiver or consent, express or implied, by any Party to or of any
breach or default by any person in the performance by such person of its obligations hereunder
shall be deemed or construed to be a consent or waiver to or of any other breach or default in the
performance by such person of the same or any other obligations of such person hereunder. Failure
on the part of a Party to complain of any act of any person or to declare any person in default,
irrespective of how long such failure continues, shall not constitute a waiver by such Party of its
rights hereunder until the applicable statute of limitations period has run.

     Section 6. Applicable Law. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE THAT MIGHT
REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION. A
PARTY MAY BRING AN ACTION ARISING UNDER OR RELATING TO THIS AGREEMENT, IF AT ALL, ONLY IN A FEDERAL
OR STATE COURT OF COMPETENT JURISDICTION IN WILMINGTON, DELAWARE. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON-CONVENIENCE, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF SUCH
ACTION OR PROCEEDING IN ANY SUCH RESPECTIVE JURISDICTION.

     Section 7. Severability. If any of the provisions of this Agreement are held by any court of
competent jurisdiction to contravene, or to be invalid under, the laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties as expressed in this
Agreement at the time of execution of this Agreement.

     Section 8. Amendment or Modification. This Agreement may be amended, modified or supplemented
from time to time only by a written agreement executed by all Parties other than the Company.

     Section 9. Assignment. No Party shall have the right to assign its rights or obligations
under this Agreement without the prior written consent of the other Parties; provided, that any
Alinda Investor may assign its rights and obligations under this Agreement to any Affiliate of such
Alinda Investor that is a permitted transferee of such Alinda Investor’s GP

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Units (as defined in the Company Partnership Agreement) in accordance with the terms of the
Company Partnership Agreement but no such permitted assignment shall be deemed to be a limitation
on Section 1(b).

     Section 10. Counterparts. This Agreement may be executed in any number of counterparts with
the same effect as if all Parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument. Execution and delivery of
this Agreement by exchange of facsimile or other electronically transmitted counterparts bearing
the signature of a Party shall be equally as effective as delivery of a manually executed
counterpart by such Party.

     Section 11. No Recourse. For the avoidance of doubt, except as expressly provided herein, the
provisions of this Agreement shall not give rise to any right of recourse against any directors,
members, managers, stockholders, owners, officers, partners, employees, agents, consultants,
attorneys or representatives of any Party.

     Section 12. Entire Agreement; Supersedure. This Agreement and the instruments referenced
herein and therein supersede all previous understandings or agreements among the Parties, whether
oral or written, with respect to their subject matter. This Agreement and such instruments contain
the entire understanding of the Parties with respect to the subject matter hereof and thereof. No
understanding, representation, promise or agreement, whether oral or written, is intended to be or
shall be included in or form part of this Agreement unless it is contained in a written amendment
hereto executed by the Parties after the date hereof except as provided in Section 8.

     Section 13. No Partnership, Agency, Etc. The relationship created hereby between the Parties
is contractual. Nothing herein shall be deemed to create a partnership, agency, independent
contractor or other relationship between the parties for any purpose.

[Signature Page Follows]

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     IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first
above written.

	 	 	 	 	 
	 	REGENCY ENERGY PARTNERS LP

 	 
	 	By:  	Regency GP LP, its general partner
 	 
	 	By:  	Regency GP LLC, its general partner
 	 
	 	 	 
	 	By:  	/s/ Byron R. Kelley
 	 
	 	 	Name:  	Byron R. Kelley 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	RIGS HAYNESVILLE PARTNERSHIP CO.

 	 
	 	By:  	/s/ Byron R. Kelley
 	 
	 	 	Name:  	Byron R. Kelley 	 
	 	 	Title:  	Authorized Person 	 
	 
	 	REGENCY HAYNESVILLE INTRASTATE GAS LLC

 	 
	 	By:  	Regency Gas Services LP, its sole member
 	 
	 	By:  	Regency OLP GP LLC, its general partner
 	 
	 	 	 
	 	By:  	/s/ Byron R. Kelley
 	 
	 	 	Name:  	Byron R. Kelley 	 
	 	 	Title:  	President 	 
	 
	 	ALINDA GAS PIPELINE I, L.P.

 	 
	 	By:  	Alinda Gas Pipeline I GP LLC, its General  Partner
 	 
	 	 	 	 
	 	By:  	/s/
Chris
Beale	 
	 	 	Name:  	Chris
Beale	 
	 	 	Title:  	President	 
	 
	 	ALINDA GAS PIPELINE II, L.P.

 	 
	 	By:  	Alinda Gas Pipeline II GP LLC, its General Partner
 	 
	 	 	 
	 	By:  	/s/
Chris
Beale	 
	 	 	Name:  	Chris
Beale	 
	 	 	Title:  	President	 

Signature Page to AMI
Agreement

 

 

	 	 	 	 	 

EXHIBIT A

AMI AREA

A-1exv10w5

Exhibit 10.5

EXECUTION VERSION

     AMENDMENT AGREEMENT NO. 7 dated as of February 26, 2009 (this “Amendment”), with respect to
the Fourth Amended and Restated Credit Agreement dated as of August 15, 2006, as amended by a first
amendment dated as of June 15, 2007, as further amended by a second amendment dated as of June 29,
2007, as further amended by a third amendment dated as of September 28, 2007, as further amended by
a fourth amendment dated as of January 15, 2008, as further amended by a fifth amendment dated as
of February 13, 2008 and as further amended by a sixth amendment and waiver dated as of May 9, 2008
(as further amended, amended and restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among REGENCY GAS SERVICES LP, a Delaware limited partnership, REGENCY
ENERGY PARTNERS LP, a Delaware limited partnership, the Subsidiary Guarantors, the Lenders, UBS
SECURITIES LLC (“UBSS”) and WACHOVIA CAPITAL MARKETS, LLC (“Wachovia Capital Markets”), as joint
lead arrangers and joint bookmanagers for the Tranche B-1 Term Loans, WACHOVIA CAPITAL MARKETS,
CITIGROUP GLOBAL MARKETS INC. (“CGMI”) and UBSS, as joint lead arrangers and joint bookmanagers for
the Revolving Loans, WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent (in such
capacity, the “Administrative Agent”) for the Lenders and as collateral agent for the Secured
Parties (in such capacity, the “Collateral Agent”), as issuing bank and swingline lender, UBS LOAN
FINANCE LLC, as syndication agent for the Loans, CGMI, as co-syndication agent for the Revolving
Loans and FORTIS CAPITAL CORP., JPMORGAN CHASE BANK, N.A., THE ROYAL BANK OF SCOTLAND PLC and
MORGAN STANLEY BANK, as co-documentation agents.

     A. Borrower has informed the Lenders of its planned midstream infrastructure development in
the Haynesville Shale region of Western Louisiana (the “Haynesville Project”).

     B. Regency Intrastate Gas LLC, a Delaware limited liability company (“RIGS”), is a direct
Subsidiary of Borrower and owns an intrastate gas pipeline that operates under Section 311 of the
Natural Gas Policy Act, and such pipeline and the membership interests in RIGS constitute a portion
of the North Louisiana Assets (as defined in the Credit Agreement).

     C. Borrower desires (i) to form or cause to be formed a joint venture with General Electric
Capital Corporation or an Affiliate thereof (“GE EFS”) and a third party (such joint venture, the
“RIGS Holdings Joint Venture”), (ii) to contribute its membership interests in RIGS to the RIGS
Holdings Joint Venture and (iii) for the RIGS Holdings Joint Venture to undertake the Haynesville
Project.

     D. Borrower has requested that the Administrative Agent and Required Lenders amend certain
provisions of the Credit Agreement as set forth herein.

     E. The Administrative Agent and Required Lenders are willing so to agree pursuant to the terms
and subject to the conditions set forth herein.

     F. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to
them in the Credit Agreement.

     In consideration of the premises and the agreements, provisions and covenants contained
herein, the parties hereto hereby agree, on the terms and subject to the conditions set forth
herein, as follows:

     SECTION 1. Amendments to the Credit Agreement.

     (a) Section 1.01 of the Credit Agreement shall be amended as follows:

	 	(i)	 	the definition of “Alternate Base Rate” shall be amended and
restated as follows:

 

 

““Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upward, if
necessary, to the nearest 1/100th of 1%) equal to the greatest of (a) the Base Rate
in effect on such day , (b) the Federal Funds Effective Rate in effect on such day
plus 0.50% and (c) the Adjusted LIBOR Rate for a borrowing with a one-month Interest
Period plus 1.50%. If the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the (i) Federal Funds Effective Rate or (ii) the Adjusted LIBOR Rate, in
each case, for any reason, including the inability or failure of the Administrative
Agent to obtain sufficient quotations in accordance with the terms of the definition
thereof, the Alternate Base Rate shall be determined without regard to (x)
clause (b) of the preceding sentence in the case of clause (i) in this sentence and
(y) clause (c) of the preceding sentence in the case of clause (ii) in this
sentence, in each case, until the circumstances giving rise to such inability no
longer exist. Any change in the Alternate Base Rate due to a change in the Base
Rate, the Federal Funds Effective Rate or the Adjusted LIBOR Rate shall be effective
on the effective date of such change in the Base Rate, the Federal Funds Effective
Rate or the Adjusted LIBOR Rate, respectively.”;

	 	(ii)	 	the definition of “Applicable Fee” shall be amended by:

(x) amending and restating the table therein in its entirety to read
as follows:

	 	 	 	 	 	 	 	 	 
	Level	 	Total Leverage Ratio	 	Applicable Fee
	Level I
	 	 	> 4.75:1.0	 	 	 	0.500	%
	Level II
	 	£ 4.75:1.0 but > 4.25:1.0	 	 	0.500	%
	Level III
	 	£ 4.25:1.0 but > 3.75:1.0	 	 	0.375	%
	Level IV
	 	 	£ 3.75:1.0	 	 	 	0.375	%

(y) each reference therein to “Amendment Effective Date” shall be
replaced with the phrase “Amendment No. 7 Effective Date”; and

(z) the following sentence shall be added at the end thereof:
“Notwithstanding anything set forth in this definition, if the Total
Leverage Ratio is in Level III or Level IV prior to December 31, 2009,
the Total Leverage Ratio shall be deemed to be in Level II.”;

	 	(iii)	 	the definition of “Applicable Margin” shall be amended as
follows:

(x) the first table in the definition of “Applicable Margin” shall be
amended and restated in its entirety to read as follows:

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	 	 	Total Leverage	 	Revolving Loans
	Level	 	Ratio	 	Eurodollar	 	ABR
	Level I
	 	 	> 4.75:1.0	 	 	 	3.25	%	 	 	2.25	%
	Level II
	 	£ 4.75:1.0 but > 4.25:1.0	 	 	3.00	%	 	 	2.00	%
	Level III
	 	£ 4.25:1.0 but > 3.75:1.0	 	 	2.75	%	 	 	1.75	%
	Level IV
	 	 	£ 3.75:1.0	 	 	 	2.50	%	 	 	1.50	%

(y) each reference therein to “Amendment Effective Date” shall be
replaced with the phrase “Amendment No. 7 Effective Date”; and

(z) the following sentence shall be added at the end thereof:
“Notwithstanding anything set forth in this definition, if the Total
Leverage Ratio is in Level III or Level IV prior to December 31, 2009,
the Total Leverage Ratio shall be deemed to be in Level II.”;

	 	(iv)	 	the definition of “Asset Sale” shall be amended by replacing
the parenthetical “(other than a Joint Venture)” with “(other than a Joint
Venture which is not the RIGS Holdings Joint Venture; provided that any
issuance of Equity Interests of the RIGS Holdings Joint Venture by such RIGS
Holdings Joint Venture shall be deemed not to be an Asset Sale hereunder)”;
	 
	 	(v)	 	the definition of “Capital Expenditures” shall be amended by
deleting “and (b)” and by inserting, immediately after “the Projects”, “, (b)
the Haynesville Project and (c)”;
	 
	 	(vi)	 	the definition of “Consolidated EBITDA” shall be amended by

(w) deleting, in clause (e) thereof, the reference to “Debt Issuance”
and replacing it with “issuance of Indebtedness pursuant to Section
6.01(j)”;

(x) deleting, in the penultimate paragraph thereof, the clause “;
provided that the aggregate pro forma additions attributable thereto shall
not exceed 15% of Consolidated EBITDA before giving effect to any such
addition”; and

(y) inserting, before the last paragraph thereof, the following
paragraph:

“Consolidated EBITDA shall be increased by, without
duplication, the amount of any applicable Haynesville EBITDA
Adjustments applicable to such period; provided that the
aggregate pro forma additions attributed to Haynesville
EBITDA Adjustments and to Material Projects shall be limited
to an amount equal to 20% of Consolidated EBITDA for each
period through and including that ended on December 31, 2009
and 15% of Consolidated EBITDA for each period ending
thereafter, in each case before giving effect to any such
additions but calculated on a Pro Forma Basis as referenced
in the paragraph immediately below.”;

- 3 -

 

	 	(vii)	 	the definition of “Consolidated Interest Expense” shall be
amended by inserting, in the last paragraph thereof, immediately following
“Material Projects”, “, any Investment by Borrower and its Subsidiaries in the
RIGS Holdings Joint Venture”;
	 
	 	(viii)	 	the definition of “Consolidated Net Income” shall be amended by inserting the
following language at the end of clause (a) thereof:
	 
	 	 	 	“provided, that if such cash received by the Reporting Entity or any of its
Subsidiaries relates to the Haynesville Project, it will be excluded from
net income (to the extent otherwise included therein) to the extent such
cash amount is otherwise reflected in a Haynesville EBITDA Adjustment for
such period;”
	 
	 	(ix)	 	the definition of “Joint Venture” shall be amended by (x)
replacing “Edwards Lime Gathering LLC” where it appears in clause (iii) of the
first sentence thereof with “each of Edwards Lime Gathering LLC and (except as
otherwise expressly set forth herein) the RIGS Holdings Joint Venture”, and (y)
replacing “Section 6.04(i)” in the last line of the second sentence
thereof with “Section 6.04(i)(ii)”;
	 
	 	(x)	 	the definition of “Material Project” shall be amended by
inserting, immediately after the phrase “any capital expansion project”,
“(other than the Haynesville Project)”;
	 
	 	(xi)	 	the definition of “Secured Obligation” shall be amended by
deleting therefrom the phrase “in connection with the Loan Documents”;
	 
	 	(xii)	 	the definition of “Specified Period” shall be deleted in its
entirety;
	 
	 	(xiii)	 	the definition of “Subsidiary” shall be amended by

(x) deleting “Edwards Lime Gathering LLC shall not” from the last sentence
thereof and replacing it with “neither Edwards Lime Gathering LLC nor the RIGS
Holdings Joint Venture shall”; and

(z) inserting, immediately preceding the period at the end thereof, “(except,
with respect to the RIGS Holdings Joint Venture, as shall be otherwise
expressly set forth herein)”; and

	 	(xiv)	 	the definition of Total Leverage Ratio shall be amended and
restated in its entirety as follows:

““Total Leverage Ratio” shall mean, at any date of determination, the ratio of
(i) the sum of (1) Consolidated Funded Indebtedness on such date plus (2) the
product of RIGS Consolidated Funded Indebtedness on such date multiplied by
the RIGS Holdings JV Ownership Percentage to (ii) Consolidated EBITDA for the
Test Period then most recently ended.”.

     (b) Section 2.07 of the Credit Agreement shall be amended as follows:

	 	(i)	 	clause (a) thereof shall be amended and restated in its
entirety as follows:

- 4 -

 

“(a) Termination of Commitments. The Revolving Commitments, the Swingline
Commitment and the LC Commitment shall automatically terminate on the Revolving
Maturity Date. In the event that the RIGS Holdings Joint Venture makes any JV
Distribution, the Revolving Commitments shall be permanently reduced in an amount
equal to the product of the amount of such JV Distribution multiplied by the RIGS
Holdings JV Ownership Percentage.”; and

	 	(ii)	 	clause (c) thereof shall be amended by inserting, immediately
preceding “Section 2.07(b)” the phrase “the second sentence of
Section 2.07(a) or”.

     (c) Section 2.19(c)(iii) of the Credit Agreement shall be amended by inserting,
immediately following “shall be”, the phrase “no earlier than”.

     (d) Section 5.01 of the Credit Agreement shall be amended by:

	 	(i)	 	deleting from clause (g) thereof, “and”;
	 
	 	(ii)	 	recaptioning clause (h) thereof as clause (i); and
	 
	 	(iii)	 	inserting, as a new clause (h), the following:
	 
	 	 	 	“(h) Concurrently with any delivery of financial
statements under Section 5.01(a) or (b): (i) to the
extent that the RIGS Holdings Joint Venture is treated on a consolidated
basis, financial statements and certifications required by Sections
5.01(a) (other than Section 5.01(a)(i)), (b) (other
than Section 5.01(b)(ii)) with a consolidating column treating
the RIGS Holdings Joint Venture on a stand-alone basis distinct from any
other Joint Venture and (ii) irrespective of the accounting treatment of
the RIGS Holdings Joint Venture, stand-alone financial statements for the
RIGS Holdings Joint Venture of the types required by Sections
5.01(a) and (b); and”.

     (e) Section 5.11(b) of the Credit Agreement shall be amended by inserting,
immediately following “Joint Venture”, “; provided that for the purposes of Section
5.11(b)(i), the RIGS Holdings Joint Venture shall be deemed to be a Subsidiary to the extent of
Borrower’s equity ownership interest therein and Borrower’s equity ownership interest thereof shall
be pledged as provided in Section 5.1 of the Security Agreement”;

     (f) Section 6.04(i) of the Credit Agreement shall be amended and restated in its
entirety as follows:

“(i) Investments made by Borrower or any Subsidiary in (i) the RIGS Holdings Joint
Venture, consisting of (A) the contribution of the RIGS Assets and (B) other
Investments in an aggregate amount not to exceed $135.0 million during the existence
of this Agreement; provided, that the amounts permitted as Investments pursuant to
clause (B) hereof (x) shall be reduced on a dollar-for-dollar basis by the
RIGS Permitted Investment Offset Amount (it being understood that the amount of such
reduction shall not exceed $135.0 million) and (y) shall only be permitted so long
as, after giving effect to any such Investment, Borrower shall have available at
least $100 million in unfunded Revolving Commitments hereunder (after reduction for
outstanding Letters of Credit) and, on a pro forma basis, the Total Leverage Ratio
shall be at least 0.50x lower than the then-applicable covenant level set forth in
Section 6.10(a), the Consolidated Interest Coverage Ratio shall

- 5 -

 

be at least 0.50x greater than the then-applicable covenant level set
forth in Section 6.10(b) and the Senior Secured Leverage Ratio shall be at
least 0.50x lower than the then-applicable covenant level set forth in Section
6.10(c); and (ii) Joint Ventures (other than the RIGS Holdings Joint Venture) in
an aggregate amount for all such Joint Ventures (other than the RIGS Holdings Joint
Venture) not to exceed $20.0 million during the existence of this Agreement;”

     (g) Section 6.08 of the Credit Agreement shall be amended by:

	 	(i)	 	deleting “and” from the end of clause (b), deleting “.” from
the end of clause (c), and adding “; and” to the end of clause (c); and
	 
	 	(ii)	 	adding at the end thereof a new clause (d) as follows:
	 
	 	 	 	“(d) a one time payment of each of the following: (i) $2.7 million to
Regency MLP to be used solely for the payment of a $2.7 million fee to GE
EFS upon the effectiveness of Regency MLP’s $45.0 million unsecured credit
facility with GE EFS and (ii) up to $45.0 million plus interest (but with
such amount payable under this clause (ii) not to exceed the amount of
proceeds received by Borrower from Regency MLP’s borrowings under such
credit facility plus interest due thereon) to Regency MLP to be used solely
for the repayment of principal then outstanding and interest due thereon
under Regency MLP’s $45.0 million unsecured credit facility with GE EFS on
the date of capitalization of the RIGS Holdings Joint Venture.”.

     (h) Section 6.09 of the Credit Agreement shall be amended by deleting, at the end of
clause (b) thereof, “and (f)”; and replacing it with “, (f) and (i)”.

     (i) Section 6.10 of the Credit Agreement shall be amended by:

	 	(i)	 	amending and restating clause (a) thereof in its entirety to
read as follows:

“(a) Maximum Total Leverage Ratio. Permit the Total Leverage Ratio, for the
last day of any Test Period, to exceed 5.25 to 1.0.”; and

	 	(ii)	 	adding the following thereto as a new Section 6.10(c):

“(c) Maximum Senior Secured Leverage Ratio. Permit the Senior Secured
Leverage Ratio for the last day of any Test Period (i) ending up to and including
December 31, 2009, to exceed 4.00 to 1.0, (ii) ending thereafter through and
including June 30, 2010, to exceed 3.75 to 1.00 and (iii) ending at any time
thereafter to exceed 3.50 to 1.00.”.

     (j) Section 6.16 of the Credit Agreement shall be amended and restated in its entirety
as follows:

“Section 6.16 Permitted RIGS Holdings Joint Venture Indebtedness.

Permit the RIGS Holdings Joint Venture to incur, create, assume or permit
to exist, directly or indirectly, any preferred equity interests or
Indebtedness for borrowed money prior to the Haynesville Actual Completion
Date.

- 6 -

 

     (k) the following shall be added to Article VI of the Credit Agreement as a new
Section 6.21:

“Section 6.21 Regency Haynesville Permitted Business. Cause or
permit Regency Haynesville to enter into any business or hold any assets
except for holding the Equity Interests of the RIGS Holdings Joint Venture
and activities incidental thereto.”

     (l) the following defined terms shall be added to Section 1.01 of the Credit Agreement
in appropriate alphabetical order:

	 	(i)	 	“Amendment No. 7” shall mean Amendment No. 7 to Fourth Amended
and Restated Credit Agreement, which amends this Agreement, dated as of the
Amendment No. 7 Effective Date, among Borrower, the Administrative Agent and
the Required Lenders.
	 
	 	(ii)	 	“Amendment No. 7 Effective Date” shall mean the date upon which
the conditions to effectiveness of this Amendment set forth in Section 2 hereof
are satisfied as certified by Borrower to the Administrative Agent.
	 
	 	(iii)	 	“Firm Transportation Agreement” shall mean (x) each of those
contracts previously provided to the Administrative Agent and the Lenders and
(y) each other contract which is entered into between any Loan Party with a
counterparty after the Amendment No. 7 Effective Date, on terms that are
substantially equal to or better than, as a whole, the terms of the contracts
described in clause (x), pursuant to which such counterparty is obligated to
pay for capacity whether or not such capacity is taken.
	 
	 	(iv)	 	“GE EFS” shall mean General Electric Capital Corporation or an
affiliate thereof.
	 
	 	(v)	 	“Haynesville Actual Completion Date” shall mean the date, to be
identified to the Administrative Agent by delivery of a certificate of an
officer of Borrower, certifying that the Haynesville Project has reached actual
capacity of 1.1 Bcf/d and is generally generating the transportation fees
specified in the Firm Transportation Agreements.
	 
	 	(vi)	 	“Haynesville EBITDA Adjustments” shall mean, with respect to
the Haynesville Project:

(a) prior to the Haynesville Actual Completion Date (and including the
fiscal quarter in which the Haynesville Actual Completion Date occurs), an
amount to be approved by the Administrative Agent, in its reasonable
judgment, as the projected Consolidated EBITDA attributable to the
Haynesville Project (such amount to be the product of (1) the difference
between (a) the projected revenues from reservation charges under the Firm
Transportation Agreements, taking into account the ability of the
producers to perform under the Firm Transportation Agreements, and
(b) projected operating and general administrative expenses of the
Haynesville Project multiplied by (2) the then-current completion
percentage of the Haynesville Project to be based upon the capital
expenditures expended on the Haynesville Project multiplied by (3) the
RIGS Holdings JV Ownership Percentage), which amount shall be added to
actual Con solidated EBITDA for the Reporting Entity and its Subsidiaries for the
fiscal quarter in which construction of the Haynesville Project commences
and for each fiscal quarter thereafter until the Haynesville Actual
Completion Date (and including the fiscal quarter in which the Haynesville
Actual Completion Date occurs, but net of any actual

- 7 -

 

Consolidated EBITDA attributable to the Haynesville Project following the Haynesville Actual
Completion Date); provided that if construction of the Haynesville Project
is not completed by the scheduled completion date, then the foregoing
amount shall be reduced, for quarters ending after the scheduled
completion date to (but excluding) the first full quarter after the
Haynesville Actual Completion Date, by the following percentage amounts
depending on the period of delay for completion (based on the period of
actual delay or then-estimated delay, whichever is longer): (i) 90 days or
less, 0%, (ii) longer than 90 days, but not longer than 180 days, 50% and
(iii) longer than 180 days, 100%; and

(b) for the first full fiscal quarter following the Haynesville Actual
Completion Date, for the first two full fiscal quarters following the
Haynesville Actual Completion Date, and for the first three full fiscal
quarters following the Haynesville Actual Completion Date, an amount equal
to the product of actual Consolidated EBITDA attributable to the
Haynesville Project for such first full fiscal quarter times four, such
first two fiscal quarters times two, and such first three full fiscal
quarters times four-thirds, respectively, multiplied by the RIGS Holdings
JV Ownership Percentage.

Notwithstanding the foregoing, no such additions shall be allowed with
respect to the Haynesville Project unless:

	 	(A)	 	not later than 20 days (or such
shorter time period as may be agreed by the Administrative
Agent) prior to delivery of a Compliance Certificate pursuant to
Section 5.01(c) if Haynesville EBITDA Adjustments shall
be added to Consolidated EBITDA in determining compliance with
Section 6.10, the Reporting Entity shall have delivered
to the Administrative Agent a written request for Haynesville
EBITDA Adjustments setting forth (i) the scheduled commercial
operation date for the Haynesville Project, (ii) pro forma
projections of Consolidated EBITDA attributable to the
Haynesville Project and (iii) information, as applicable,
regarding (A) Firm Transportation Agreements, other contracts or
negotiated settlements relating to the Haynesville Project, (B)
the ability of the producers to perform under the Firm
Transportation Agreements, (C) projected revenues from such Firm
Transportation Agreements, other contracts or negotiated
settlements, as the case may be and (D) projected capital costs
and projected operating and general administrative expenses, and
	 
	 	(B)	 	prior to the date such
certificate is required to be delivered, the Administrative
Agent shall have approved (such approval not to be unreasonably
withheld or delayed) such projections and shall have received
such other information and documentation as the Administrative
Agent may reasonably request, all in form and substance
satisfactory to the Administrative Agent.”

- 8 -

 

	 	(vii)	 	“Haynesville Project” shall mean the planned midstream
infrastructure development in the Haynesville Shale region of Western Louisiana
by the RIGS Holdings Joint Venture.
	 
	 	(viii)	 	“JV Distributions” shall mean distributions made to the RIGS Holdings Joint
Venture’s equity investors made directly or indirectly from the proceeds of
Indebtedness of the RIGS Holdings Joint Venture.
	 
	 	(ix)	 	“Regency Haynesville” shall mean a direct or indirect
Subsidiary of Borrower formed for the sole purpose of directly holding all
direct or indirect ownership interests of Borrower in the RIGS Holdings Joint
Venture.
	 
	 	(x)	 	“RIGS” shall mean Regency Intrastate Gas LLC, a Delaware
limited liability company.
	 
	 	(xi)	 	“RIGS Assets” shall mean all Equity Interests issued, and all
assets owned, by RIGS.
	 
	 	(xii)	 	“RIGS Consolidated Funded Indebtedness” shall mean, with
respect to the RIGS Holdings Joint Venture, on a consolidated basis in
accordance with GAAP, without duplication, (i) all Indebtedness of such persons
of the types referred to in clauses (a), (b), (c), (d), and (f), of the
definition of “Indebtedness” herein, (ii) all Indebtedness of others of the
type referred to in clause (i) above, secured by a Lien on property owned or
acquired by any such person, whether or not the obligations secured thereby
have been assumed, but limited to the fair market value of such property, (iii)
all Contingent Obligations of any such person with respect to Indebtedness of
others of the type referred to in clause (i) above, and (iv) all Indebtedness
of the type referred to in clause (i) above of any other entity (including any
partnership in which such person is a general partner) to the extent any such
person is liable therefor as a result of such person’s ownership interest in or
other relationship with such entity, except (other than in the case of general
partner liability) to the extent that the terms of such Indebtedness expressly
provide that such person is not liable therefor.
	 
	 	(xiii)	 	“RIGS Holdings Joint Venture” shall mean an entity formed by Regency
Haynesville for the purpose of such entity becoming a joint venture with a
third party, owning all of the RIGS Assets and participating in the Haynesville
Project. RIGS Holdings Joint Venture shall, except as expressly set forth
herein, be treated for all purposes as a “Joint Venture” hereunder.
	 
	 	(xiv)	 	“RIGS Holdings Joint Venture Term Sheet” shall mean the term
sheet regarding the RIGS Holdings Joint Venture provided to the Administrative
Agent and the Lenders on February 25, 2009.
	 
	 	(xv)	 	“RIGS Holdings JV Ownership Percentage” shall mean the
percentage of the total ownership interests in the RIGS Holdings Joint Venture
that is owned by Regency Haynesville on a fully diluted basis on the last day
of the last quarter of the applicable Test Period.
	 
	 	(xvi)	 	“RIGS Permitted Investment Offset Amount” shall mean the
number which is the product of (1) Indebtedness incurred by the RIGS Holdings
Joint Venture to finance capital expenditures multiplied by (2) the RIGS Holdings JV
Ownership Percentage.

- 9 -

 

	 	(xvii)	 	“Senior Secured Leverage Ratio” shall mean, at any date of determination, the
ratio of (i) the sum of (1) Consolidated Funded Indebtedness that is secured by
a Lien on any assets or property of the Reporting Entity or any of its
Subsidiaries, as of the last day of such Test Period plus (2) the product of
RIGS Consolidated Funded Indebtedness multiplied by the RIGS Holdings JV
Ownership Percentage to (ii) Consolidated EBITDA for the Test Period then most
recently ended.

     (m) Exhibit D to the Credit Agreement shall be replaced in its entirety with Exhibit D
attached hereto.

     SECTION 2. Conditions Precedent. The effectiveness of this Amendment is subject to
the following conditions, which must be satisfied on or before April 30, 2009:

     (a) The Administrative Agent shall have received signature pages for this Amendment
from Borrower and the Required Lenders;

     (b) Borrower shall deliver or cause to be delivered a legal opinion of Vinson & Elkins
LLP, counsel to Borrower, together with any additional legal opinions, mortgage amendments,
or other documents reasonably requested by the Administrative Agent in connection herewith
(in each case, unless extended or waived by the Administrative Agent in its sole
discretion);

     (c) all requisite Governmental Authority and material third party approvals in
connection with the formation and capitalization of the RIGS Holdings Joint Venture shall
have been obtained, except where the failure to obtain such consents could not, individually
or in the aggregate, be reasonably expected to have a Material Adverse Effect, and there
shall not be any temporary or permanent injunction prohibiting the formation and
capitalization of the RIGS Holdings Joint Venture;

     (d) the Administrative Agent shall have received from Borrower a certificate, executed
by the secretary of Borrower (or such other officer as may be acceptable to the
Administrative Agent) in form and substance satisfactory to the Administrative Agent,
attaching a copy of the resolutions, in form and substance reasonably satisfactory to the
Administrative Agent, of the Board of Directors (or similar body) of Borrower (or a duly
authorized committee thereof) authorizing the execution, delivery and performance of this
Amendment and the definitive documentation relating to the formation and capitalization of
the RIGS Holdings Joint Venture and the related transactions (including this Amendment);

     (e) the Administrative Agent shall received all material agreements and definitive
documentation relating to the RIGS Holdings Joint Venture, including (without limitation) an
investment agreement by and among Borrower, GE EFS and the third-party investor (the
“Investment Agreement”), a partnership or limited liability company agreement relating to
the RIGS Holdings Joint Venture, a management services agreement relating to the RIGS
Holdings Joint Venture and such other agreements as the Administrative Agent may reasonably
request, all in form and substance certified by Borrower to be at least as favorable to the
Borrower and Lenders, taken as a whole, as the RIGS Holdings Joint Venture Term Sheet and
reasonably satisfactory to the Administrative Agent;

- 10 -

 

     (f) the RIGS Holdings Joint Venture shall have been formed and (i) RIGS or Borrower, as
applicable, shall have contributed the RIGS Assets thereto and (ii) each of GE EFS and a
third-party investor shall have made the contributions thereto required pursuant to the
Investment Agreement and the Administrative Agent shall have received satisfactory evidence
thereof;

     (g) on or prior to March 18, 2009, either (1) Regency MLP shall have obtained from GE
EFS an unsecured credit facility in an aggregate amount of $45.0 million, the proceeds of
which shall be used to fund the Haynesville Project and which shall mature no earlier than
the earlier of (x) the formation and capitalization of the RIGS Holdings Joint Venture or
(y) the three-month anniversary of the Final Maturity Date or (2) each other condition
precedent set forth in this Section 2 shall have been satisfied;

     (h) Borrower shall have paid any amounts owed pursuant to the Administrative Agent Fee
Letter, dated as of February 13, 2009, between Borrower and the Administrative Agent;

     (i) Borrower shall have paid a fee to each Lender who delivers to the Administrative
Agent a consent in writing to this Amendment by 5:00 p.m., New York City time on February
24, 2009, and reconfirms, by 2:00 p.m. (New York City time) on February 25, 2009, their
consent with respect to revisions to this amendment posted to the Lenders after 5:00 p.m.,
New York City time on February 24, 2009, in an amount equal to 0.50% of such consenting
Lender’s outstanding Commitments under the Credit Agreement;

     (j) CDM Resource Management LLC shall obtain a $75.0 million operating lease facility
from Caterpillar Financial Services Corp. on terms substantially consistent with those terms
provided to the Administrative Agent prior to the date hereof;

     (k) Borrower shall have paid all amounts owed pursuant to Section 7 hereof; and

     (l) Borrower shall have delivered to the Administrative Agent a certificate signed by a
Responsible Officer of Borrower, confirming compliance with the conditions precedent set
forth in this Section 2.

     SECTION 3. Representations and Warranties. Borrower represents and warrants to the
Administrative Agent and each of the Lenders that:

     (a) This Amendment is within Borrower’s organizational powers and has been duly
authorized by all necessary organizational action on the part of Borrower. This Amendment
has been duly executed and delivered by Borrower and constitutes, a legal, valid and binding
obligation of Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law. This Amendment will not violate any Requirement of Law in
any material respect, will not violate or result in a default or require any consent or
approval under any indenture, agreement or other instrument binding upon any Company or its
property, or give rise to a right thereunder to require any payment to be made by any
Company, except for violations, defaults or the creation of such rights that could not
reasonably be expected to result in a Material Adverse Effect.

     (b) After giving effect to this Amendment, the representations and warranties set forth
in Article III of the Credit Agreement or in any Loan Document are true and correct in all

- 11 -

 

material respects (it being understood and agreed that any representation or warranty
that by its terms is made as of a specified date shall be required to be true and correct in
all material respects as of a specified date).

     (c) After giving effect to this Amendment, no Default or Event of Default has occurred
or is continuing.

     (d) As of December 31, 2008, the RIGS Assets constituted approximately $325,309,909.00;
and approximately $49,207,292.00 and $54,289,367.00 of net income and revenue, respectively,
for the fiscal year ended on December 31, 2008 were attributable to the RIGS Assets.

     SECTION 4. Credit Agreement. Except as specifically provided hereby, the Credit
Agreement shall continue in full force and effect in accordance with the provisions thereof as in
existence on the date hereof. After the date hereof, any reference to the Credit Agreement in any
Loan Document shall mean the Credit Agreement as modified hereby. This Amendment shall be a Loan
Document for all purposes.

     SECTION 5. Applicable Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York, without regard to conflicts of law principles that
would require the application of the laws of another jurisdiction.

     SECTION 6. Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall constitute an original but all of which when taken together shall constitute
one contract. Delivery of an executed signature page of this Amendment by facsimile or “pdf file”
transmission shall be effective as delivery of a manually executed counterpart hereof.

     SECTION 7. Expenses. Borrower agrees to reimburse the Administrative Agent for the
reasonable out-of-pocket expenses incurred by it in connection with this Amendment, including the
reasonable fees, charges and disbursements of Cahill Gordon & Reindel llp, counsel for the
Administrative Agent.

     SECTION 8. Headings. The Section headings used herein are for convenience of
reference only, are not part of this Amendment and are not to affect the construction of, or to be
taken into consideration in interpreting, this Amendment.

[Signature pages to follow]

- 12 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first written above.

	 	 	 	 	 
	 	REGENCY GAS SERVICES LP,

 	 
	 	By:  	Regency OLP GP LLC, its general partner
 	 
	 	 	 
	 	By:  	           /s/ Stephen L. Arata
 	 
	 	 	Name:  	Stephen L. Arata 	 
	 	 	Title:  	Vice President 	 
	 

S-1-1

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and a Lender

 	 
	 	By:  	/s/ Henry R. Biedrzycki
 	 
	 	 	Name:  	Henry R. Biedrzycki 	 
	 	 	Title:  	Director 	 
	 

S-1-2

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	, 	as a
	 	 	 	 	 
	 

	 	 	 	Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

S-1-3

 

EXHIBIT D

[Form of]

COMPLIANCE CERTIFICATE

[see attached]

D-1

 

EXHIBIT D

[Form of]

COMPLIANCE CERTIFICATE

          I, [                    ], the [Financial Officer] of [                               
         ] (in such
capacity and not in my individual capacity), hereby certify that, with respect to that certain
Fourth Amended and Restated Credit Agreement dated as of August 15, 2006 (as it may be amended,
modified, extended or restated from time to time, the “Credit Agreement”; all of the defined terms
in the Credit Agreement are incorporated herein by reference) among Regency Gas Services LP, a
Delaware limited partnership, as borrower (the “Borrower”), Regency Energy Partners LP (“Regency
MLP”) and the other Guarantors party thereto, the Lenders party thereto, Wachovia Bank, National
Association, as Administrative Agent, Collateral Agent, Swingline Lender and Issuing Bank and the
other Agents party thereto.

     a. Attached hereto as Schedule 1 are detailed calculations1
demonstrating compliance by each of the Loan Parties with [clause (d) of the definition of
Permitted Acquisition as it pertains to Section 6.07(f) and] Section 6.10 of the Credit
Agreement. Each of the Loan Parties is in compliance with such Sections as of the date
hereof. [Attached hereto as Schedule 2 is the report of KPMG LLP]2

     b. No Default has occurred under the Credit Agreement which has not been previously
disclosed, in writing, to the Administrative Agent pursuant to a Compliance
Certificate.3

 

			
	1	 	To accompany annual and quarterly financial statements.
Which calculations shall be in reasonable detail satisfactory to the
Administrative Agent and shall include, among other things, an explanation of
the methodology used in such calculations and a breakdown of the components of
such calculations.
	 
	2	 	To accompany annual financial statements only. The
report must opine or certify that in the course of its regular audit of the
financial statements of the Reporting Entity and its Subsidiaries, which audit
was conducted in accordance with generally accepted auditing standards, such
accounting firm obtained no knowledge that any Default insofar as it relates to
financial or accounting matters subject to audit procedures has occurred or if
such accounting firm believes such a Default has occurred, specifying the
nature and extent thereof.
	 
	3	 	If a Default shall have occurred, an explanation
specifying the nature and extent of such Default shall be provided on a
separate page together with an explanation of the corrective action taken or
proposed to be taken with respect thereto (include, as applicable, information
regarding actions, if any, taken since prior certificate).

     Dated this [   ] day of [                    ], 20[   ].

	 	 	 	 	 
	 	 	   [ 

   ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Financial Officer] 	 
	 

 

SCHEDULE 1

Financial Covenants4

	6.10(a) 	 	Maximum Total Leverage Ratio: the ratio of (i) the sum of (1)
Consolidated Funded Indebtedness on [      ] plus (2) the product of RIGS
Consolidated Funded Indebtedness on such date multiplied by the RIGS Holdings
JV Ownership Percentage to (ii) Consolidated EBITDA for the Test Period most
recently ended.

	 	 	 	 	 
	(I) Consolidated Funded Indebtedness means, with respect to the Reporting
Entity and its Subsidiaries, on a consolidated basis in accordance with GAAP,
without duplication:
	 	 	 	 
	 
	 	 	 	 
	(A) all Indebtedness of such persons of the following types:
	 	 	 	 
	 
	 	 	 	 
	1. all obligations of such person for borrowed money;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	2. all obligations of such person evidenced by bonds,
debentures, notes or similar instruments;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	3. all obligations of such person under conditional
sale or other title retention agreements relating to
property purchased by such person;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	4. all obligations of such person issued or assumed
as the deferred purchase price of property or
services (excluding trade accounts payable and
accrued obligations incurred in the ordinary course
of business and not overdue by more than 90 days);
and
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	5. all Capital Lease Obligations, Purchase Money
Obligations and synthetic lease obligations of such
person;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Subtotal; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(B) all Indebtedness of others of the type referred to in clause
(A) above secured by a Lien on property owned or acquired by any
such person, whether or not the obligations secured thereby have
been assumed, but limited to the fair market value of such
property; plus
	 	 	 	 
	 
	 	 	 

 

			
	4	 	Capitalized terms used but not defined herein shall have
the meanings set forth in the Credit Agreement.

-2-

 

	 	 	 	 	 
	(C) all Contingent Obligations of any such person with respect to
Indebtedness of others of the type referred to in clause (A)
above; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(D) all Indebtedness of the type referred to in clause (A) above
of any other entity (including any partnership in which such
person is a general partner) to the extent any such person is
liable therefor as a result of such person’s ownership interest in
or other relationship with such entity, except (other than in the
case of general partner liability) to the extent that the terms of
such Indebtedness expressly provide that such person is not liable
therefor.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated Funded Indebtedness at [            ], 20[     ]
((A) + (B) + (C) + (D))      
	I =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(II) RIGS Consolidated Funded Indebtedness shall mean, with respect to the
RIGS Holdings Joint Venture, on a consolidated basis in accordance with GAAP,
without duplication:
	 	 	 	 
	 
	 	 	 	 
	(A) all Indebtedness of the type referred to in clause (A) of the
calculation of Consolidated Funded Indebtedness above; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(B) all Indebtedness of others of the type referred to in clause
(A) immediately above secured by a Lien on property owned or
acquired by any such person, whether or not the obligations
secured thereby have been assumed, but limited to the fair market
value of such property; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(C) all Contingent Obligations of any such person with respect to
Indebtedness of others of the type referred to in clause (A)
immediately above; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(D) all Indebtedness of others of the type referred to in clause
(A) immediately above of any other entity (including any
partnership in which such person is a general partner) to the
extent any such person is liable therefor as a result of such
person’s ownership interest in or other relationship with such
entity, except (other than in the case of general partner
liability) to the extent that the terms of such Indebtedness
expressly provide that such person is not liable therefor.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	RIGS Consolidated Funded Indebtedness at [            ], 20[     ]
((A) + (B) + (C) + (D))      
	II =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(III) RIGS Holdings JV Ownership Percentage5      
	III =	 	 	 
	 
	 	 	 

 

			
	5	 	Shall be the percentage of total ownership interests in
the RIGS Holdings Joint Venture that is owned by Regency Haynesville on a fully
diluted basis on the last day of the last quarter of the applicable Test
Period.

-3-

 

	 	 	 	 	 
	(IV) Consolidated EBITDA shall mean, for any period:
	 	 	 	 
	 
	 	 	 	 
	(A) Consolidated Net Income (see Annex A) for such period,
adjusted by adding thereto6:
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	1. Consolidated Interest Expense for such period (see
breakout in 6.10(b) calculation);
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	2. Consolidated Amortization Expense for such period;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	3. Consolidated Depreciation Expense for such period;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	4. Consolidated Tax Expense for such period;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	5. costs and expenses directly incurred in connection
with the Previous Transactions (with respect to
Projects, the cost and expenses solely related to the
construction thereof) and the incurrence of
additional Indebtedness under the predecessor
agreements hereto in connection therewith (not to
exceed $22.5 million), the Specified IPO, any
Permitted Acquisition, any issuance of Indebtedness
pursuant to Section 6.01(j) or any Investment made
pursuant to Section 6.04(i) of the Credit Agreement;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	6. the aggregate amount of all other non-cash charges
reducing Consolidated Net Income (excluding any
non-cash charge that results in an accrual of a
reserve for cash charges in any future period) for
such period; and
	 	 	 	 
	 
	 	 	 

 

			
	6	 	In each case only to the extent (and in the same
proportion) deducted in determining such Consolidated Net Income (and with
respect to the portion of Consolidated Net Income attributable to any
Subsidiary of the Reporting Entity only if a corresponding amount would be
permitted at the date of determination to be distributed to the Reporting
Entity by such Subsidiary without prior approval to the extent required (that
has not been obtained) pursuant to the terms of its Organizational Documents
and all agreements, instruments and Requirements of Law applicable to such
Subsidiary or its equityholders). Consolidated EBITDA shall be calculated on a
Pro Forma Basis to give effect to the Previous Transactions, the Transactions,
any Permitted Acquisition and Asset Sale consummated at any time on or after
the first day of the Test Period thereof as if the Previous Transactions, the
Transactions and each such Permitted Acquisition had been effected on the first
day of such period and as if each such Asset Sale had been consummated on the
first day of such period.

-4-

 

	 	 	 	 	 
	7. the aggregate amount, without duplication, of
payments pursuant to Section 6.08(b) of the Credit
Agreement for such period.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Subtotal; minus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(B) the aggregate amount of all non-cash items increasing
Consolidated Net Income (other than the accrual of revenue or
recording of receivables in the ordinary course of business) for
such period.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Subtotal; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(C) one-quarter of the EBITDA projected for the first twelve
(12) months of operations of a Material Project7
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Subtotal; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(D) any applicable Haynesville EBITDA Adjustments for such
period.8
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated EBITDA ((A) — (B) + (C) + (D) =)       
	IV =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Total Leverage Ratio (((I) + ((II) x (III))) / (IV) =)
	 	 	[     ]:1.00 	 
	 
	 	 	 	 
	Covenant Requirement
	 	 	 	 
	 
	 	 	 

 

			
	7	 	Shall be added to actual Consolidated EBITDA for the
fiscal quarter in which such Material Project was completed and for each of the
immediately preceding three fiscal quarters (in each case, net of any actual
Consolidated EBITDA attributable to such Material Project accruing after its
completion); provided that the aggregate amount of any such addition shall not
exceed (20%) of the capital cost of such Material Project; provided further
that no such additions shall be allowed with respect to any Material Project
unless, not less than thirty (30) days prior to the completion thereof, the
Administrative Agent shall have received written pro forma projections of
EBITDA relating to such Material Project and such other documentation as the
Administrative Agent may reasonably request, all in form and substance
satisfactory to the Administrative Agent.
	 
	8	 	Shall be determined pursuant to the calculations found
in Annex B; provided that the aggregate pro forma additions attributed to
Haynesville EBITDA Adjustments and to Material Projects shall be limited to an
amount equal to 20% of Consolidated EBITDA for each period through and
including that ended on December 31, 2009 and 15% of Consolidated EBITDA for
each period ending thereafter, in each case before giving effect to any such
additions but calculated on a Pro Forma Basis as referenced in footnote 6
above..

-5-

 

	6.10(b) 	 	Minimum Consolidated Interest Coverage Ratio: the ratio of
Consolidated EBITDA for the Test Period most recently ended to Consolidated
Interest Expense for the Test Period most recently ended

	 	 	 	 	 
	(I) Consolidated EBITDA (from Maximum Total Leverage Ratio Calculation) 
	I =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(II) Consolidated Interest Expense calculation:
	 	 	 	 
	 
	 	 	 	 
	Consolidated Interest Expense shall mean, for any period9
	 	 	 	 
	 
	 	 	 	 
	(A) the total consolidated interest expense of the Reporting
Entity and its Subsidiaries for such period net of gross interest
income of the Reporting Entity and its Subsidiaries, in each case
determined on a consolidated basis in accordance with GAAP plus,
without duplication (to the extent not already included in such
total consolidated interest expense):
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	1. imputed interest on Capital Lease Obligations and
Sale/Leaseback Attributable Indebtedness of the
Reporting Entity and its Subsidiaries for such
period; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	2. commissions, discounts and other fees and charges
owed by the Reporting Entity or any of its
Subsidiaries with respect to letters of credit
securing financial obligations, bankers’ acceptance
financing and receivables financings for such period;
plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	3. amortization of debt issuance costs, debt discount
or premium and other financing fees and expenses
incurred by the Reporting Entity or any of its
Subsidiaries for such period; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 

 

			
	9	 	Note that to the extent directly related to the
Transactions, Previous Transactions or any Permitted Acquisition, debt issuance
costs, debt discount or premium and other financing fees and expenses shall be
excluded from the calculation of Consolidated Interest Expense and Consolidated
Interest Expense shall be calculated after giving effect to Hedging Agreements
(including associated costs), but excluding unrealized gains and losses with
respect to Hedging Agreements. Further, Consolidated Interest Expense shall be
calculated on a Pro Forma Basis to give effect to any Indebtedness incurred,
assumed or permanently repaid or extinguished during the relevant Test Period
in connection with the Previous Transactions, the Transactions, any Permitted
Acquisition, Material Projects, any Investment by Borrower and its Subsidiaries
in the RIGS Holdings Joint Venture and Asset Sales as if such incurrence,
assumption, repayment or extinguishment had been effected on the first day of
such period.

-6-

 

	 	 	 	 	 
	4. cash contributions to any employee stock ownership
plan or similar trust made by the Reporting Entity or
any of its Subsidiaries to the extent such
contributions are used by such plan or trust to pay
interest or fees to any person (other than Reporting
Entity or a Wholly Owned Subsidiary) in connection
with Indebtedness incurred by such plan or trust for
such period; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	5. the interest portion of any deferred payment
obligations of the Reporting Entity or any of its
Subsidiaries for such period; plus
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	6. all interest on any Indebtedness of the Reporting
Entity or any of its Subsidiaries of the type
described in clauses (e) and (j) of the definition of
“Indebtedness” for such period.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated Interest Expense ((A) + 1 + 2 + 3 + 4 + 5 + 6 =)      
	II =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Ratio of Consolidated EBITDA to Consolidated Interest Expense
((I)/(II)=)
	 	 	[     ]:1.00 	 
	 
	 	 	 	 
	Covenant Requirement
	 	 	 	 
	 
	 	 	 

-7-

 

	6.10(c) 	 	Maximum Senior Secured Leverage Ratio: the ratio of (i) the sum
of (1) Consolidated Funded Indebtedness that is secured by a Lien on any
assets or property of the Reporting Entity or any of its Subsidiaries as
of the last day of such Test Period plus (2) the product of RIGS
Consolidated Funded Indebtedness multiplied by the RIGS Holdings JV
Ownership Percentage to (ii) Consolidated EBITDA for the Test Period most
recently ended.

	 	 	 	 	 
	(I) Consolidated Funded Indebtedness secured by a Lien on any assets or
property of the Reporting Entity or any of its Subsidiaries as of the
last day of such Test Period (from Maximum Total Leverage Ratio
Calculation) adjusted by subtracting the amount of Consolidated Funded
Indebtedness that is not secured by a Lien on any assets or property of
the Reporting Entity or any of its Subsidiaries as of the last day of
such Test Period
	 	 	 	 
	 
	 	 	 	 
	(A) Consolidated Funded Indebtedness (from Maximum total
Leverage Ration Calculation); less
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(B) the amount of Consolidated funded Indebtedness that is not
secured by a Lien on any assets or property of the Reporting
Entity or any of its Subsidiaries as of the last day of such
Test Period
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated Funded Indebtedness, as adjusted ((A) — (B)=) 
	I =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(II) RIGS Consolidated Funded Indebtedness (from Maximum Total Leverage
Ratio Calculation)      
	II =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(III) RIGS Holdings JV Ownership Percentage (from Maximum Total Leverage
Ratio Calculation)      
	III =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	(IV) Consolidated EBITDA (from Maximum Total Leverage Ratio Calculation)
  
	IV =	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Senior Secured Leverage Ratio (((I) + ((II) x (III))) / (IV) =)
	 	 	[     ]:1.00 	 
	 
	 	 	 	 
	Covenant Requirement
	 	 	 	 
	 
	 	 	 

	6.07(f) 	 	[Permitted Acquisitions:

          For each Permitted Acquisition consummated during
this period (if any) please copy this Schedule I
and show compliance with the above covenants on a
Pro Forma Basis to demonstrate compliance with
clause (ii)(d) of the definition of “Permitted
Acquisitions”.]

-8-

 

Annex A

	 	 	 	 	 
	A. Detail on Consolidated Net Income:
	 	 	 	 
	 
	 	 	 	 
	1. For such period, the consolidated net income (or loss) of the Reporting
Entity and its Subsidiaries determined on a consolidated basis in
accordance with GAAP;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	provided that there shall be excluded from such net income (to the extent
otherwise included therein), without duplication:
	 	 	 	 
	 
	 	 	 	 
	2. the net income (or loss) of any person (other than the Reporting Entity
or a Subsidiary of the Reporting Entity that is not a Joint Venture) in
which any person other than the Reporting Entity and its Subsidiaries has
an ownership interest, except to the extent that cash in an amount equal to
any such income has actually been received by the Reporting Entity or
(subject to clause (3) below) any of its Subsidiaries during such period;
provided, that if such cash received by the Reporting Entity or any of its
Subsidiaries relates to the Haynesville Project, it will be excluded from
net income (to the extent otherwise included therein) to the extent such
cash amount is otherwise reflected in a Haynesville EBITDA Adjustment (as
determined pursuant to Annex B) for such period;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	3. the net income of any Subsidiary of the Reporting Entity during such
period to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary of that income is not permitted by
operation of the terms of its Organizational Documents or any agreement,
instrument or Requirement of Law applicable to that Subsidiary during such
period, except that Reporting Entity’s equity in net loss of any such
Subsidiary for such period shall be included in determining Consolidated
Net Income;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	4. any gain (or loss), together with any related provisions for taxes on
any such gain (or the tax effect of any such loss), realized during such
period by the Reporting Entity or any of its Subsidiaries upon any Asset
Sale (other than any dispositions in the ordinary course of business) by
the Reporting Entity or any of its Subsidiaries;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	5. gains and losses due solely to fluctuations in currency values and the
related tax effects determined in accordance with GAAP for such period;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	6. non-cash earnings resulting from any reappraisal, revaluation or
write-up of assets;
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	7. unrealized gains and losses with respect to Hedging Obligations for such
period; and
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	8. any extraordinary gain (or extraordinary loss), giving effect to any
related provision for taxes on any such gain (or the tax effect of any such
loss), recorded or recognized by the Reporting Entity or any of its
Subsidiaries during such period.
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated Net Income (1 - 2 - 3 - 4 - 5 - 6 - 7 - 8)
	 =	 	 	 
	 
	 	 	 

-9-

 

Annex B

Haynesville EBITDA Adjustment Calculation

“Haynesville EBITDA Adjustment” for such period shall mean, with respect to the Haynesville
Project:

     (a) prior to the Haynesville Actual Completion Date (and including the fiscal quarter
in which the Haynesville Actual Completion Date occurs), an amount to be approved by the
Administrative Agent, in its reasonable judgment, as the projected Consolidated EBITDA
attributable to the Haynesville Project (such amount to be the product of (1) the difference
between (a) the projected revenues from reservation charges under the Firm Transportation
Agreements, taking into account the ability of the producers to perform under the Firm
Transportation Agreements, and (b) projected operating and general administrative expenses
of the Haynesville Project multiplied by (2) the then-current completion percentage of the
Haynesville Project to be based upon the capital expenditures expended on the Haynesville
Project multiplied by (3) the RIGS Holdings JV Ownership Percentage), which amount shall be
added to actual Consolidated EBITDA for the Reporting Entity and its Subsidiaries for the
fiscal quarter in which construction of the Haynesville Project commences and for each
fiscal quarter thereafter until the Haynesville Actual Completion Date (and including the
fiscal quarter in which the Haynesville Actual Completion Date occurs, but net of any actual
Consolidated EBITDA attributable to the Haynesville Project following the Haynesville Actual
Completion Date); provided that if construction of the Haynesville Project is not completed
by the scheduled completion date, then the foregoing amount shall be reduced, for quarters
ending after the scheduled completion date to (but excluding) the first full quarter after
the Haynesville Actual Completion Date, by the following percentage amounts depending on the
period of delay for completion (based on the period of actual delay or then-estimated delay,
whichever is longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but not longer than
180 days, 50% and (iii) longer than 180 days, 100%; and

     (b) for the first full fiscal quarter following the Haynesville Actual Completion Date,
for the first two full fiscal quarters following the Haynesville Actual Completion Date, and
for the first three full fiscal quarters following the Haynesville Actual Completion Date,
an amount equal to the product of actual Consolidated EBITDA attributable to the Haynesville
Project for such first full fiscal quarter times four, such first two fiscal quarters times
two, and such first three full fiscal quarters times four-thirds, respectively, multiplied
by the RIGS Holdings JV Ownership Percentage.

     Notwithstanding the foregoing, no such additions shall be allowed with respect to the
Haynesville Project unless:

	 	(A)	 	not later than 20 days (or such shorter time period as
may be agreed by the Administrative Agent) prior to delivery of a
Compliance Certificate pursuant to Section 5.01(c) if Haynesville
EBITDA Adjustments shall be added to Consolidated EBITDA in determining
compliance with Section 6.10, the Reporting Entity shall have
delivered to the Administrative Agent a written request for Haynesville
EBITDA Adjustments setting forth (i) the scheduled commercial operation
date for the Haynesville Project, (ii) pro forma projections of
Consolidated EBITDA attributable to the Haynesville Project and (iii)
information, as applicable, regarding (A) Firm Transportation Agreements,
other contracts or negotiated settlements relating to the Haynesville
Project, (B) the ability of the producers to perform under the Firm
Transportation Agreements, (C) projected revenues from such Firm
Transportation Agreements, other contracts or negotiated settlements,
as the case may be and (D) projected capital costs and projected operating
and general administrative expenses, and
	 
	 	(B)	 	prior to the date such certificate is required to be
delivered, the Administrative Agent shall have approved (such approval not
to be unreasonably withheld or delayed) such projections and shall have
received such other information and documentation as the Administrative
Agent may reasonably request, all in form and substance satisfactory to the
Administrative Agent.

-10-

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