exv4w5



 





Exhibit 4.5




EXECUTION VERSION




U.S. $950,000,000




SECOND AMENDED AND RESTATED CREDIT AGREEMENT




Dated as of June 29, 2007




Among




CENTERPOINT ENERGY RESOURCES CORP.




 as Borrower,




and




THE INITIAL LENDERS NAMED HEREIN




as Initial Lenders,




and




CITIBANK, N.A.




 as  Administrative Agent,




and




DEUTSCHE BANK SECURITIES INC. and BANK OF AMERICA, NATIONAL ASSOCIATION




as  Co-Syndication Agents,




and




THE ROYAL BANK OF SCOTLAND PLC and ABN AMRO BANK N.V.




as Co-Documentation Agents




 






CITIGROUP GLOBAL MARKETS INC., DEUTSCHE BANK SECURITIES INC.

and BANC OF AMERICA SECURITIES LLC




as Lead Arrangers,




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Table of Contents




	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND ACCOUNTING TERMS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Certain Defined Terms
	 	 	1	 
	SECTION 1.02 Computation of Time Periods
	 	 	19	 
	SECTION 1.03 Accounting Terms
	 	 	19	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	AMOUNTS AND TERMS OF THE ADVANCES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 The Revolving Advances and Letters of Credit
	 	 	19	 
	SECTION 2.02 Making the Revolving Advances
	 	 	20	 
	SECTION 2.03 Swingline Loans
	 	 	21	 
	SECTION 2.04 Issuance of and Drawings and Reimbursement Under Letters of Credit
	 	 	22	 
	SECTION 2.05 The CAF Advances
	 	 	23	 
	SECTION 2.06 Competitive Bid Procedure
	 	 	23	 
	SECTION 2.07 Fees
	 	 	26	 
	SECTION 2.08 Termination or Reduction of the Revolving Commitments
	 	 	26	 
	SECTION 2.09 Repayment
	 	 	27	 
	SECTION 2.10 Interest
	 	 	27	 
	SECTION 2.11 Interest Rate Determination
	 	 	28	 
	SECTION 2.12 Optional Conversion of Revolving Advances
	 	 	29	 
	SECTION 2.13 Optional Prepayments of Revolving Advances
	 	 	29	 
	SECTION 2.14 Increased Costs
	 	 	29	 
	SECTION 2.15 Illegality
	 	 	30	 
	SECTION 2.16 Payments and Computations
	 	 	30	 
	SECTION 2.17 Taxes
	 	 	31	 
	SECTION 2.18 Sharing of Payments, Etc.
	 	 	33	 
	SECTION 2.19 Use of Proceeds
	 	 	33	 
	SECTION 2.20 Extension Option
	 	 	33	 
	SECTION 2.21 Increase in the Aggregate Revolving Commitments
	 	 	34	 
	SECTION 2.22 Evidence of Debt
	 	 	35	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	CONDITIONS TO EFFECTIVENESS AND LENDING
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 Conditions Precedent to Effectiveness of Sections 2.01 and 2.05
	 	 	35	 
	SECTION 3.02 Conditions Precedent to Each Revolving Borrowing, Issuance and Commitment Increase
	 	 	36	 
	SECTION 3.03 Conditions Precedent to Each CAF Borrowing
	 	 	37	 
	SECTION 3.04 Determinations Under Section 3.01
	 	 	37	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01 Representations and Warranties of the Borrower
	 	 	37	 





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	 	 	Page
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	COVENANTS OF THE BORROWER
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01 Affirmative Covenants
	 	 	39	 
	SECTION 5.02 Negative Covenants
	 	 	41	 
	SECTION 5.03 Total Debt to Capitalization Ratio
	 	 	45	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01 Events of Default
	 	 	45	 
	SECTION 6.02 Actions in Respect of the Letters of Credit upon Default
	 	 	47	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	THE ADMINISTRATIVE AGENT
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01 Authorization and Action
	 	 	47	 
	SECTION 7.02 Administrative Agent’s Reliance, Etc.
	 	 	47	 
	SECTION 7.03 Citibank and Affiliates
	 	 	48	 
	SECTION 7.04 Lender Credit Decision
	 	 	48	 
	SECTION 7.05 Indemnification
	 	 	48	 
	SECTION 7.06 Successor Administrative Agents
	 	 	49	 
	SECTION 7.07 Agents; Lead Arrangers; Global Coordinators
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01 Amendments, Etc.
	 	 	50	 
	SECTION 8.02 Notices, Etc.
	 	 	50	 
	SECTION 8.03 No Waiver; Remedies
	 	 	51	 
	SECTION 8.04 Costs and Expenses
	 	 	51	 
	SECTION 8.05 Right of Set off
	 	 	52	 
	SECTION 8.06 Binding Effect
	 	 	53	 
	SECTION 8.07 Assignments and Participations
	 	 	53	 
	SECTION 8.08 Patriot Act Notification
	 	 	55	 
	SECTION 8.09 Confidentiality
	 	 	55	 
	SECTION 8.10 Governing Law
	 	 	55	 
	SECTION 8.11 Counterparts
	 	 	55	 
	SECTION 8.12 Removal of Lender
	 	 	56	 
	SECTION 8.13 Jurisdiction, Etc.
	 	 	56	 





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iii


	 	 	 
	Schedules
	 	 
	 
	Schedule I
	 	List of Applicable Lending Offices
	Schedule II
	 	Global Coordinators Addresses
	Schedule III
	 	Commitment Percentages
	Schedule IV
	 	Existing Letters of Credit
	 
	Exhibits
	 	 
	 
	Exhibit A-1
	 	Form of Promissory Note
	Exhibit A-2
	 	Form of Swingline Promissory Note
	Exhibit B
	 	Form of Notice of Borrowing
	Exhibit C
	 	Form of Assignment and Acceptance
	Exhibit D
	 	Form of CAF Note
	Exhibit E
	 	Form of Competitive Bid Request
	Exhibit F
	 	Form of Competitive Bid
	Exhibit G
	 	Form of Competitive Bid Confirmation
	Exhibit H
	 	Form of Notice of Letter of Credit Issuance
	Exhibit I
	 	Form of Assumption Agreement





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CREDIT AGREEMENT




Dated as of June 29, 2007




               SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), among CENTERPOINT
ENERGY RESOURCES CORP., a Delaware corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) listed on the
signature pages hereof, DEUTSCHE BANK SECURITIES INC. and BANK OF AMERICA, NATIONAL ASSOCIATION, as
co-syndication agents (the “Co-Syndication Agents”), CITIBANK, N.A. (“Citibank”),
and BANK OF AMERICA, NATIONAL ASSOCIATION, as Issuing Banks, and THE ROYAL BANK OF SCOTLAND PLC and
ABN AMRO BANK N.V. as co-documentation agents (the “Co-Documentation Agents”) and CITIBANK,
as administrative agent (the “Administrative Agent”) for the Lenders (as hereinafter
defined).



W I T N E S S E T H




               WHEREAS, the Borrower entered into that certain Existing Credit Facility (as defined below);
and



               WHEREAS, the Borrower has requested that the Existing Credit Facility be amended and restated
in its entirety;



               NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the
parties hereto agree that on the Effective Date, the Existing Credit Facility shall be, and hereby
is, amended and restated in its entirety as follows:



ARTICLE I




DEFINITIONS AND ACCOUNTING TERMS




               SECTION 1.01 Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):



               “Acquired Entity” has the meaning set forth in the definition of “Permitted
Liens”.




          “Advance” means a Revolving Advance, a Letter of Credit Advance or a CAF
Advance, as the case may be, by a Lender to the Borrower pursuant to Article II, and refers
to a Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a “Type” of
Advance).




          “Affiliate” of any Person means any other Person that, directly or indirectly,
Controls or is Controlled by or is under common Control with such first Person.




          “Administrative Agent’s Account” means the account of the Administrative Agent
maintained by the Administrative Agent at Citibank, N.A. with its office at Two Penns Way,
Suite 200, New Castle, Delaware, 19720, Account No. 36852248, Attention: Global
Loans/Agency.




          “Aggregate Outstanding Extensions of Credit” means, as to any Lender at any
time, an amount equal to the aggregate principal amount of all Revolving Advances, Letters
of Credit, Letter of Credit Advances, CAF Advances and Swingline Loans made by such Lender
then outstanding.




          “Applicable Lending Office” means, with respect to each Lender, such Lender’s
Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance or CAF Eurodollar Rate Advance.


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               “Applicable Margin” means, as of any date, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:



	 	 	 	 	 
	Public Debt Rating	 	Applicable Margin for	 	Applicable Margin for
	S&P/Moody’s/Fitch	 	Base Rate Advances	 	Eurodollar Rate Advances
	Level 1
	 	 	 	 
	Higher than Level 2
	 	0.0%	 	0.25%
	Level 2
	 	 	 	 
	BBB+/Baal/BBB+
	 	0.0%	 	0.35%
	Level 3
	 	 	 	 
	BBB/Baa2/BBB
	 	0.0%	 	0.45%
	Level 4
	 	 	 	 
	BBB-/Baa3/BBB-
	 	0.0%	 	0.55%
	Level 5
	 	 	 	 
	BB+/Ba1/BB+
	 	0.0%	 	0.70%
	Level 6

Lower than Level 5 or
unrated by S&P, Moody’s
and Fitch
	 	0.00%	 	1.00%







               “Applicable Percentage” means, as of any date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set forth below:



	 	 	 
	Public Debt Rating	 	Applicable
	S&P/Moody’s/Fitch	 	Percentage
	Level 1

Higher than Level 2
	 	0.06%
	Level 2

BBB+/Baal/BBB+
	 	0.07%
	Level 3

BBB/Baa2/BBB
	 	0.09%
	Level 4

BBB-/Baa3/BBB-
	 	0.125%
	Level 5

BB+/Ba1/BB+
	 	0.175%
	Level 6

Lower than Level 5 or unrated by S&P, Moody’s and Fitch
	 	0.20%







               “Applicable Utilization Fee” means, as of any date on which the aggregate
principal amount of the Advances plus the Letters of Credit exceeds 50% of the
aggregate amount of the Lenders’ Revolving Commitments, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:



	 	 	 
	Public Debt Rating	 	Applicable Utilization
	S&P/Moody’s/Fitch 	 	Fee
	Level 1
Higher than Level 2
	 	0.05%
	Level 2
BBB+/Baal/BBB+
	 	0.05%
	Level 3
BBB/Baa2/BBB
	 	0.05%





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	Public Debt Rating	 	Applicable Utilization
	S&P/Moody’s/Fitch 	 	Fee
	Level 4

BBB-/Baa3/BBB-
	 	0.05%
	Level 5

BB+/Ba1/BB+
	 	0.10%
	Level 6

Lower than Level 5 or unrated by
S&P, Moody’s and Fitch
	 	0.10%







               “Assignment and Acceptance” means an assignment and acceptance entered into by
a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in
substantially the form of Exhibit C hereto.




               “Assuming Bank” has the meaning assigned to such term in Section 2.21(d).




               “Available Amount” of any Letter of Credit means, at any time, the maximum
amount available to be drawn under such Letter of Credit assuming compliance at such time
with all conditions to drawing.




               “Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the higher of:




                    (a) the rate of interest announced publicly by Citibank in New York, New York,
from time to time, as its base rate; and




                    (b) 1/2 of one percent per annum above the Federal Funds Rate.




               “Base Rate Advance” means a Revolving Advance that bears interest as provided
in Section 2.10(a).




               “Board” means the Board of Governors of the Federal Reserve System of the
United States (or any successor).




               “Borrowed Money” of any Person means any Indebtedness of such Person for or in
respect of money borrowed or raised by whatever means (including acceptances, deposits and
lease obligations under Capital Leases); provided, however, that Borrowed
Money shall not include (a) any guarantees that may be incurred by endorsement of negotiable
instruments for deposit or collection in the ordinary course of business or similar
transactions, (b) any obligations or guarantees of performance of obligations under a
franchise, performance bonds, franchise bonds, obligations to reimburse drawings under
letters of credit issued in accordance with the terms of any safe harbor lease or franchise
or in lieu of performance or in lieu of franchise bonds or other obligations that do not
represent money borrowed or raised, which reimbursement obligations in each case shall be
payable in full within ten (10) Business Days after the date upon which such obligation
arises, (c) trade payables, (d) customer advance payments and deposits arising in the
ordinary course of such Person’s business, (e) operating leases and (f) obligations under
swap agreements.




               “Borrowing” means either a Revolving Borrowing, a CAF Borrowing or a Swingline
Loan.




               “Borrowing Date” means any Business Day specified by the Borrower as a date on
which the Borrower requests the relevant Lenders to make Advances hereunder.




               “Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day relates to
any Eurodollar Rate Advances, on which dealings are carried on in the London interbank
market.


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          “CAF Advance” means an Advance made to the Borrower pursuant to Section 2.05 by
a Lender in response to a Competitive Bid Request.




          “CAF Borrowing” means a borrowing consisting of CAF Advances under Section 2.06
consisting of CAF Advances of the same Type made on the same day by the Lender or Lenders
whose Competitive Bid or Bids have been accepted pursuant to Section 2.06(d).




          “CAF Eurodollar Rate Advance” means any CAF Advance that bears interest at the
Eurodollar Rate.




          “CAF Facility” has the meaning as set forth in Section 2.05(a).




          “CAF Margin” means, as to any Competitive Bid relating to a CAF Eurodollar Rate
Advance, the margin (expressed as a percentage rate per annum in the form of a decimal to no
more than four decimal places) to be added to or subtracted from the Eurodollar Rate in
order to determine the interest rate acceptable to such Lender with respect to such CAF
Eurodollar Rate Advance.




          “CAF Note” means a promissory note of the Borrower payable to the order of any
Lender that has requested a CAF Note pursuant to Section 2.22(a), in substantially the form
of Exhibit D hereto, evidencing the aggregate indebtedness of the Borrower to such
Lender resulting from the CAF Advances made by such Lender.




          “CAF Rate” means, as to any Competitive Bid made by a Lender pursuant to
Section 2.06(b), (i) in the case of a CAF Eurodollar Rate Advance, the CAF Margin added to
or subtracted from, as the case may be, the Eurodollar Rate, and (ii) in the case of a Fixed
Rate Advance, the fixed rate of interest, in each case, offered by such Lender.




          “Capital Lease” means a lease that, in accordance with GAAP, would be recorded
as a capital lease on the balance sheet of the lessee.




          “Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, and any and all
equivalent ownership interests in a Person (other than a corporation), including without
limitation, partnership interests in partnerships and member interests in limited liability
companies, and any and all warrants or options to purchase any of the foregoing or
securities convertible into any of the foregoing.




          “Closing Date” means the date, on or before July 31, 2007, all of the
conditions set forth in Section 6.1 are satisfied (or waived) in accordance with the terms
hereof.




          “Commitment” means the Revolving Commitment, the Letter of Credit Commitment
and the Swingline Limit.




          “Commitment Increase” has the meaning as set forth in Section 2.21 (a).




          “Commitment Percentage” means, for each Lender, the percentage identified as
its Commitment Percentage opposite such Lender’s name on Schedule III attached hereto, as
such percentage may be modified by assignment in accordance with the terms of this Agreement
or by reductions or increases in the Revolving Commitment pursuant to Section 2.08 and
Section 2.21.




          “Communications” has the meaning specified in Section 8.02(b).




          “Competitive Bid” has the meaning as set forth in Section 2.06(b).




          “Competitive Bid Confirmation” has the meaning as set forth in Section 2.06(d).



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          “Competitive Bid Request” has the meaning as set forth in Section 2.06(a).




          “Confidential Information” means information that the Borrower or any of its
Subsidiaries furnishes to the Administrative Agent or any Lender in a writing designated as
confidential or which in the Borrower’s or its Subsidiaries’ course of dealing with the
Administrative Agent or such Lender has been designated as confidential, but does not
include any such information that is or becomes generally available to the public or that is
or becomes available to the Administrative Agent or such Lender from a source other than the
Borrower or its Subsidiaries.




          “Consolidated” refers to the consolidation of accounts in accordance with GAAP.




          “Consolidated Capitalization” means the sum of (a) Consolidated Shareholders’
Equity, (b) Consolidated Indebtedness for Borrowed Money and (c) without duplication, any
Mandatory Payment Preferred Stock.




          “Consolidated Shareholders’ Equity” means, as of any date of determination, the
total assets of the Borrower and its Consolidated Subsidiaries, less all liabilities of the
Borrower and its Consolidated Subsidiaries. As used in this definition, “liabilities” means
all obligations that, in accordance with GAAP consistently applied, would be classified on a
balance sheet as liabilities (including without limitation (to the extent so classified),
(a) Indebtedness; (b) deferred liabilities; and (c) Indebtedness of the Borrower or any of
its Consolidated Subsidiaries that is expressly subordinated in right and priority of
payment to other liabilities of the Borrower or such Consolidated Subsidiary, but in any
case excluding as at such date of determination any Junior Subordinated Debt owned by any
issuer of Hybrid Equity Securities and excluding any adjustment, non-cash charge to net
income or other non-cash charges or write-offs resulting thereto from the application of
SFAS No. 142 and similar provisions of GAAP.




          “Contractual Obligation” means, as to any Person, any provision of any security
issued by such Person or of any written agreement, instrument or other written undertaking
to which such Person is a party or by which it or any of its property is bound.




          “Controlled” means, with respect to any Person, the ability of another Person
(whether directly or indirectly and whether by the ownership of voting securities, contract
or otherwise) to appoint and/or remove the majority of the members of the board of directors
or other governing body of that Person (and “Control” and “Controls” shall be similarly
construed).




          “Convert”, “Conversion” and “Converted” each refers to a
conversion of Revolving Advances of one Type into Revolving Advances of the other Type
pursuant to Section 2.11 or 2.12.




          “Declining Lender” has the meaning specified in Section 2.20.




          “Default” means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or both.




          “Domestic Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or
in the Assignment and Acceptance pursuant to which it became a Lender, or such other office
of such Lender as such Lender may from time to time specify to the Borrower and the
Administrative Agent.




          “Effective Date” has the meaning specified in Section 3.01.




          “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by the Administrative Agent, the Issuing Banks and, unless
an Event of Default has occurred and is continuing at the time any assignment is effected in
accordance with Section 8.07, the Borrower, such approval not to be unreasonably withheld or
delayed; provided, however, that neither the Borrower nor an Affiliate of
the Borrower shall qualify as an Eligible Assignee.


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          “Environmental Action” means any action, suit, demand, demand letter, claim,
notice of non compliance or violation, notice of liability or potential liability,
investigation, proceeding, consent order or consent agreement relating in any way to any
Environmental Law, Environmental Permit or Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment, including, without
limitation, (a) by any governmental or regulatory authority for enforcement, cleanup,
removal, response, remedial or other actions or damages and (b) by any governmental or
regulatory authority or any third party for damages, contribution, indemnification, cost
recovery, compensation or injunctive relief.




          “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency
interpretation, policy or guidance having the force of law relating to pollution or
protection of the environment, health, safety or natural resources, including, without
limitation, those relating to the use, handling, transportation, treatment, storage,
disposal, release or discharge of Hazardous Materials.




          “Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law.




          “Equity Interests” means any capital stock, partnership, joint venture, member
or limited liability or unlimited liability company interest, beneficial interest in a trust
or similar entity or other equity interest or investment of whatever nature.




          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.




          “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the Borrower’s controlled group, or under common control with the Borrower, within
the meaning of Section 414 of the Internal Revenue Code.




          “ERISA Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30 day notice
requirement with respect to such event has been waived by the PBGC, or (ii) the requirements
of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such
Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within
the following 30 days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate
such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to
a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations
at a facility of the Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA Affiliate from a
Multiple Employer Plan during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien
under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption
of an amendment to a Plan requiring the provision of security to such Plan pursuant to
Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan
pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in
Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of
a trustee to administer, a Plan.




          “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation
D of the Board of Governors of the Federal Reserve System, as in effect from time to time.




          “Eurodollar Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no
such office is specified, its Domestic Lending Office), or such other office of such Lender
as such Lender may from time to time specify to the Borrower and the Administrative Agent.


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          “Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate
Advance comprising part of the same Borrowing, an interest rate per annum equal to the rate
per annum obtained by dividing (a) the rate (rounded upward to the nearest whole multiple of
1/100 of 1% per annum, if such rate per annum is not such a multiple) for deposits in U.S.
dollars appearing on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two
Business Days before the first day of such Interest Period in an amount substantially equal
to the Administrative Agent’s Eurodollar Rate Advance comprising part of such Borrowing to
be outstanding during such Interest Period and for a period equal to such Interest Period by
(b) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such
Interest Period. In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Rate” shall be determined by
reference to such other comparable publicly available service for displaying eurodollar
rates as may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits at or about 11:00 A.M., New York City time, two Business Days before the first day
of such Interest Period in the interbank eurodollar market where its eurodollar and foreign
currency and exchange operations are then being conducted for delivery on the first day of
such Interest Period for the number of days comprised therein.




          “Eurodollar Rate Advance” means a Revolving Advance that bears interest as
provided in Section 2.10(a)(ii).




          “Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Rate Advances or CAF Eurodollar Rate Advances comprising part of the same Borrowing means
the reserve percentage applicable two Business Days before the first day of such Interest
Period under regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve requirement
(including, without limitation, any emergency, supplemental or other marginal reserve
requirement) for a member bank of the Federal Reserve System in New York City with respect
to liabilities or assets consisting of or including Eurocurrency Liabilities (or with
respect to any other category of liabilities that includes deposits by reference to which
the interest rate on Eurodollar Rate Advances or CAF Eurodollar Rate Advances is determined)
having a term equal to such Interest Period.




          “Events of Default” has the meaning specified in Section 6.01.




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




          “Existing Credit Facility” means the $550,000,000 Amended and Restated Credit
Agreement, dated as of March 31, 2006, among the Borrower, the lenders party thereto, and
Citigroup Global Markets Inc., Deutsche Bank and Banc of America Securities LLC, as lead
arrangers, and Deutsche Bank and Bank of America, National Association, as co-syndication
agents, Citibank, N.A. and Bank of America, National Association, as issuing banks, and The
Royal Bank of Scotland PLC and ABN AMRO Bank N.V., as co-documentation agents, and Citibank,
N.A., as administrative agent.




          “Existing Issuing Banks” means each of Bank of America, National Association
and Citibank, N.A., in their respective capacities as issuers of the Existing Letters of
Credit.




          “Existing Letters of Credit” means the letters of credit issued under the
Existing Credit Facility described on Schedule IV.




          “Extending Lender” has the meaning specified in Section 2.20.




          “Extended Termination Date” has the meaning specified in Section 2.20.




          “Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding Business Day) by the Federal Reserve Bank of



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8

New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.




          “Fee Letter” means the Senior Credit Facility Fee Letter dated as of May 24,
2007 among Citibank, Citigroup Global Markets Inc., and J.P. Morgan Securities Inc. and
JPMorgan Chase Bank, N.A. and the Borrower.




          “Financial Officer” means, with respect to the Borrower, its chief financial
officer, chief accounting officer, treasurer, assistant treasurer, comptroller or any other
officer acceptable to the Administrative Agent.




          “Fitch” means Fitch Ratings, and any successors thereto.




          “Fixed Rate Advance” means any CAF Advance made by a Lender pursuant to Section
2.06(b) based upon a fixed percentage rate per annum offered by such Lender, expressed as a
decimal (to no more than four decimal places), and accepted by the Borrower.




          “Fully Hedged” means, with respect to any Indexed Debt Securities, that the
Borrower or any Consolidated Subsidiary of the Borrower either (i) owns or has in effect
rights providing substantially the economic effect, in such context, of owning, a sufficient
amount of the Indexed Asset relating thereto to satisfy completely its obligations at
maturity of the Indexed Debt Securities or (ii) has in effect a hedging arrangement
sufficient to enable it to satisfy completely its obligations at maturity of the Indexed
Debt Securities.




          “GAAP” has the meaning specified in Section 1.03.




          “Global Coordinators” means J.P. Morgan Securities Inc. and Citigroup Global
Markets Inc., in their capacities as global coordinators.




          “Governmental Authority” means any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.




          “Guarantee” means, as to any Person (the “guaranteeing person”), any
obligation of (a) the guaranteeing Person or (b) another Person (including, without
limitation, any bank under any letter of credit) to induce the creation of which the
guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in
either case guaranteeing or in effect guaranteeing any principal of any Indebtedness for
Borrowed Money (the “primary obligation”) of any other third Person in any manner,
whether directly or indirectly, including, without limitation, any obligation of the
guaranteeing Person, whether or not contingent, (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor, (ii) to advance or supply
funds for the purchase or payment of any such primary obligation or (iii) otherwise to
assure or hold harmless the owner of any such primary obligation against loss in respect
thereof. The amount of any Guarantee of any guaranteeing person shall be deemed to be the
lower of (a) an amount equal to the stated or determinable amount of the primary obligation
in respect of which such Guarantee is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument embodying such
Guarantee, unless such primary obligation and the maximum amount for which such guaranteeing
person may be liable are not stated or determinable, in which case the amount of such
Guarantee shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith (and “guaranteed” and
“guarantor” shall be construed accordingly).




          “Hazardous Materials” means (a) petroleum and petroleum products, byproducts or
breakdown products, radioactive materials, asbestos containing materials, polychlorinated
biphenyls and radon gas and


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9

(b) any other chemicals, materials or substances designated, classified or regulated as
hazardous or toxic or as a pollutant or contaminant under any Environmental Law.




          “Hybrid Equity Securities” means, on any date (the “determination date”), any
securities issued by the Borrower or a Restricted Subsidiary, other than common stock, that
meet the following criteria: (a) the Borrower demonstrates that such securities are
classified, at the time they are issued, as possessing a minimum of “intermediate equity
content” by S&P and “Basket C equity credit” by Moody’s (or the equivalent classifications
then in effect by such agencies) and (b) such securities require no repayments or
prepayments and no mandatory redemptions or repurchases, in each case, prior to at least 91
days after the later of the termination of the Commitments and the repayment in full of the
Obligations. As used in this definition, “mandatory redemption” shall not include
conversion of a security into common stock.




          “Increase Date” has the meaning as set forth in Section 2.21(a).




          “Increasing Lender” has the meaning as set forth in Section 2.21(b).




          “Indebtedness” of any Person means the sum of (a) all items (other than Capital
Stock, capital surplus, retained earnings, other comprehensive income, treasury stock and
any other items that would properly be included in shareholder equity) that, in accordance
with GAAP consistently applied, would be included in determining total liabilities as shown
on the liability side of a balance sheet of such Person as at the date on which the
Indebtedness is to be determined, (b) all obligations of such Person, contingent or
otherwise, as account party or applicant (or equivalent status) in respect of any standby
letters of credit or equivalent instruments, and (c) without duplication, the amount of
Guarantees by such Person of items described in clauses (a) and (b); provided,
however, that Indebtedness of a Person shall not include (i) any Junior Subordinated
Debt owned by any issuer of Hybrid Equity Securities, (ii) any Guarantee by the Borrower or
its Subsidiaries of payments with respect to any Hybrid Equity Securities, or (iii) any
Hybrid Equity Securities.




          “Indexed Asset” means, with respect to any Indexed Debt Security, (i) any
security or commodity that is deliverable upon maturity of such Indexed Debt Security to
satisfy the obligations under such Indexed Debt Security at maturity or (ii) any security,
commodity or index relating to one or more securities or commodities used to determine or
measure the obligations under such Indexed Debt Security at maturity thereof.




          “Indexed Debt Securities” means any security issued by Borrower or any
Consolidated Subsidiary of Borrower that (a) in accordance with GAAP, is shown on the
consolidated balance sheet of Borrower and its Consolidated Subsidiaries as Indebtedness or
a liability and (b) the obligations at maturity of which may be satisfied completely by the
delivery of, or the amount of such obligations are determined by reference to, (1) an equity
security issued by an issuer other than Borrower or any such Consolidated Subsidiary or (2)
an underlying index, commodity or security.




          “Information Memorandum” means the information memorandum dated May 2007 used
by the Lead Arrangers in connection with the syndication of the Commitments.




          “Interest Period” means, for each Eurodollar Rate Advance comprising part of
the same Revolving Borrowing and each CAF Eurodollar Rate Advance comprising part of the
same CAF Borrowing, the period commencing on the date of such Eurodollar Rate Advance or CAF
Eurodollar Rate Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance and ending on the last day of the period selected by the Borrower
pursuant to the provisions below and, thereafter, with respect to Eurodollar Rate Advances,
each subsequent period commencing on the last day of the immediately preceding Interest
Period and ending on the last day of the period selected by the Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be two weeks or one, two,
three or six months (or such other period as may be approved by the Administrative Agent),
as the Borrower may, upon notice received by the Administrative Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the first day of such Interest
Period, select; provided, however, that:



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10



     (i) the Borrower may not select any Interest Period that ends after the
Termination Date;




     (ii) Interest Periods commencing on the same date for Eurodollar Rate Advances
comprising part of the same Revolving Borrowing or for CAF Eurodollar Rate Advances
comprising part of the same CAF Borrowing shall be of the same duration;




     (iii) whenever the last day of any Interest Period would otherwise occur on a
day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day, provided,
however, that, if such extension would cause the last day of such Interest
Period to occur in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day; and




     (iv) whenever the first day of any Interest Period occurs on a day of an
initial calendar month for which there is no numerically corresponding day in the
calendar month that succeeds such initial calendar month by the number of months
equal to the number of months in such Interest Period, such Interest Period shall
end on the last Business Day of such succeeding calendar month.



     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.




     “Investment” in any Person means any loan or advance to such Person, any
purchase or other acquisition of any capital stock, warrants, rights, options, other
securities or all or substantially all of the assets of such Person or any capital
contribution to such Person or any other investment in such Person.




     “Issuing Banks” means (a) the Existing Issuing Banks, (b) Bank of America,
National Association, SunTrust Bank and (c) any other Lender approved as an Issuing Bank by
the Administrative Agent and any Eligible Assignee to which a Letter of Credit Commitment
hereunder has been assigned pursuant to Section 8.07 so long as each such Lender or Eligible
Assignee expressly agrees to perform in accordance with their terms all of the obligations
that by the terms of this Agreement are required to be performed by an Issuing Bank and
notifies the Administrative Agent of its Applicable Lending Office and the amount of its
Letter of Credit Commitment (which information shall be recorded by the Administrative Agent
in the Register), for so long as such Issuing Bank, Lender or Eligible Assignee, as the case
may be, shall have a Letter of Credit Commitment.




     “Junior Subordinated Debt” means subordinated debt of the Borrower or any
Subsidiary of the Borrower (i) that is issued to an issuer of Hybrid Equity Securities in
connection with the issuance of such Hybrid Equity Securities, (ii) the payment of the
principal of which and interest on which is subordinated (with certain exceptions) to the
prior payment in full in cash or its equivalent of all senior indebtedness of the obligor
thereunder and (iii) that has an original tenor no earlier than 30 years from the issuance
thereof.




     “Lead Arrangers” has the meaning specified in the recital of parties to this
Agreement.




     “L/C Disbursement” means a payment or disbursement made by any Issuing Bank
pursuant to a Letter of Credit.




     “Lenders” means the Initial Lenders and each Person that shall become a party
hereto pursuant to Section 8.07.




     “Letter of Credit Advance” means an advance by any Issuing Bank or any Lender
pursuant to Section 2.04(c).




     “Letter of Credit Commitment” means, with respect to any Issuing Bank at any
time, the amount set forth opposite such Issuing Bank’s name on Schedule III hereof under
the caption “Letter of Credit


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11

Commitment” or, if such Issuing Bank has entered into one or more Assignment and
Acceptances, set forth for such Issuing Bank in the Register maintained by the
Administrative Agent pursuant to Section 8.07.




          “Letter of Credit Facility” means, at any time, an amount equal to the amount
of the Issuing Banks’ Letter of Credit Commitments at such time, as such amount may be
reduced at or prior to such time pursuant to Section 2.08.




          “Letters of Credit” has the meaning specified in Section 2.01(b).




          “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, charge, security interest, encumbrance or lien of any kind whatsoever
(including any Capital Lease).




          “Loan Documents” means this Agreement, the Notes or CAF Notes (if any), each
Letter of Credit, and all other documents executed in connection herewith and therewith,
including, without limitation, each Notice of Borrowing.




          “Local Distribution Company” means a company that owns and/or operates the
equipment and facilities for distributing natural gas or electric energy within a local
region and delivers it to end-user customers.




          “Mandatory Payment Preferred Stock” means any preference or preferred stock of
the Borrower or of any Consolidated Subsidiary (in each case other than any issued to the
Borrower or its Subsidiaries and other than Hybrid Equity Securities) that is subject to
mandatory redemption, sinking fund or retirement provisions; provided, that any
amounts subject to any mandatory redemption, sinking fund or retirement provisions due and
payable prior to the Termination Date or within one year following the Termination Date will
not be considered Mandatory Payment Preferred Stock.




          “Margin Stock” means any margin stock (as defined in Regulation U) and any
margin security (as defined in Regulation T).




          “Material Adverse Change” means any material adverse change in the ability of
the Borrower to perform its obligations under the Loan Documents on a timely basis (it being
understood and agreed that a Material Adverse Change shall not include the effect of any
True-Up Litigation) since December 31, 2006.




          “Material Adverse Effect” means any material adverse effect on the ability of
the Borrower to perform its obligations under this Agreement or any other Loan Document on a
timely basis (it being understood and agreed that a Material Adverse Effect shall not
include the effect of any True-Up Litigation).




          “Maturity Date” means June 29, 2012.




          “MLP” means one or more master limited partnerships formed by the Borrower or
its Subsidiaries.




          “MLP GP” means any general partner of any MLP and any general partner of the
general partner of any MLP.




          “MLP LP” means any limited partner in an MLP.




          “MLP Subsidiary” means a Subsidiary of any MLP.




          “MLP Unrestricted Subsidiary” means any MLP, MLP GP, MLP LP, or MLP Subsidiary.




          “Money Market Rate” means (a) the “ASK” rate for Federal Funds appearing on
Page 5 of the Dow Jones Market Service (or on any successor or substitute page of such
Service, or any successor to or



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12

substitute for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Swingline Lender from time to
time for purposes of providing quotations of the offer rates applicable to Federal Funds for
a term of one Business Day) at the time reviewed by the Swingline Lender plus (b)
the Applicable Margin for Eurodollar Rate Advances. In the event that part (a) of such rate
is not available at such time for any reason, then part (a) of such rate will be the rate
agreed to between the Swingline Lender and the Borrower. The Borrower understands and
agrees that the rate quoted from Page 5 of the Dow Jones Market Service is a real-time rate
that changes from time to time. The rate quoted by the Swingline Lender and used for the
purpose of setting the interest rate for a Swingline Loan will be the rate on the screen of
the Swingline Lender at the time of setting the rate and will not be an average or composite
of rates for that day.




          “Money Market Rate Loan” means a Swingline Loan the rate of interest applicable
to which is based upon the Money Market Rate.




          “Moody’s” means Moody’s Investors Service, Inc., and any successors thereto.




          “Multiemployer Plan” means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making or accruing an
obligation to make contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.




          “Multiple Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA
Affiliate and at least one Person other than the Borrower and the ERISA Affiliates or (b)
was so maintained and in respect of which the Borrower or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.




          “Net Tangible Assets” means, with respect to the Borrower, the total assets of
the Borrower and its Consolidated Subsidiaries and Unrestricted Subsidiaries (other than MLP
Unrestricted Subsidiaries), minus goodwill and other intangible assets as shown on
the balance sheet of the Borrower, its Consolidated Subsidiaries and the Unrestricted
Subsidiaries(other than MLP Unrestricted Subsidiaries) delivered pursuant to Section 5.01(j)
in respect of the most recently ended fiscal quarter of the Borrower and with respect to any
other Person, the total assets of such Person and its Consolidated Subsidiaries,
minus goodwill and other intangible assets as determined pursuant to such Person’s
most recently available financial statements.




          “Non-Recourse Debt” means (i) any Indebtedness for Borrowed Money incurred by
any Project Finance Subsidiary to finance the acquisition, improvement, installation,
design, engineering, construction, development, completion, maintenance or operation of, or
otherwise to pay costs and expenses relating to or providing financing for any project,
which Indebtedness for Borrowed Money does not provide for recourse against the Borrower or
any Subsidiary of the Borrower (other than a Project Finance Subsidiary and such recourse as
exists under a Performance Guaranty) or any property or asset of the Borrower or any
Subsidiary of the Borrower (other than Equity Interests in, or the property or assets of, a
Project Finance Subsidiary and such recourse as exists under a Performance Guaranty) and
(ii) any refinancing of such Indebtedness for Borrowed Money that does not increase the
outstanding principal amount thereof (other than to pay costs incurred in connection
therewith and the capitalization of any interest, fees, premium or penalties) at the time of
the refinancing or increase the property subject to any Lien securing such Indebtedness for
Borrowed Money or otherwise add additional security or support for such Indebtedness for
Borrowed Money.




          “Note” means the collective reference to any promissory note evidencing
Borrowings.




          “Notice” has the meaning specified in Section 8.02(c).




          “Notice Date” has the meaning specified in Section 2.20.




          “Notice of Borrowing” has the meaning specified in Section 2.02.



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13


          “Notice of Letter of Credit Issuance” has the meaning specified in Section
2.04(a).




          “Obligation” means, with respect to any Person, any payment, performance or
other obligation of such Person of any kind, including, without limitation, any liability of
such Person on any claim, whether or not the right of any creditor to payment in respect of
such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
disputed, undisputed, legal, equitable, secured or unsecured, and whether or not claim is
discharged, stayed or otherwise affected by any proceeding referred to in Section 6.01(f).
Without limiting the generality of the foregoing, the Obligations of the Borrower under the
Loan Documents include (a) the obligation to pay principal, interest, charges, expenses,
fees, attorneys’ fees and disbursements, indemnities and other amounts payable by the
Borrower under any Loan Document and (b) the obligation of the Borrower to reimburse any
amount in respect of any of the foregoing that any Lender, in its sole discretion, may elect
to pay or advance on behalf of the Borrower.




          “Parent” means CenterPoint Energy, Inc., a Texas corporation.




          “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).




          “Performance Guaranty” means any guaranty issued in connection with any
Non-Recourse Debt that (i) if secured, is secured only by assets of or Equity Interests in a
Project Finance Subsidiary, and (ii) guarantees to the provider of such Non-Recourse Debt or
any other Person (a) performance of the improvement, installation, design, engineering,
construction, acquisition, development, completion, maintenance or operation of, or
otherwise affects any such act in respect of, all or any portion of the project that is
financed by such Non-Recourse Debt, (b) completion of the minimum agreed equity or other
contributions or support to the relevant Project Finance Subsidiary, or (c) performance by a
Project Finance Subsidiary of obligations to Persons other than the provider of such
Non-Recourse Debt.




          “Permitted Liens” means with respect to any Person:




          (a) Liens for current taxes, assessments or other governmental charges that are not
delinquent or remain payable without any penalty, or the validity or amount of which is
contested in good faith by appropriate proceedings, provided, however, that
adequate reserves with respect thereto are maintained on the books of such Person in
accordance with GAAP, and provided further that any right to seizure, levy,
attachment, sequestration, foreclosure or garnishment with respect to Property of such
Person or any Subsidiary of such Person by reason of such Lien has not matured, or has been,
and continues to be, effectively enjoined or stayed;




          (b) landlord Liens for rent not yet due and payable and Liens for materialmen,
mechanics, warehousemen, carriers, employees, workmen, repairmen and other similar
nonconsensual Liens imposed by operation of law, for current wages or accounts payable or
other sums not yet delinquent, in each case arising in the ordinary course of business or if
overdue, that are being contested in good faith by appropriate proceedings,
provided, however, that any right to seizure, levy, attachment,
sequestration, foreclosure or garnishment with respect to Property of such Person or any
Subsidiary of such Person by reason of such Lien has not matured, or has been, and continues
to be, effectively enjoined or stayed;




          (c) Liens (other than any Lien imposed pursuant to Section 401(a)(29) or 412(n) of the
Internal Revenue Code, ERISA or any environmental law, order, rule or regulation) incurred
or deposits made, in each case, in the ordinary course of business, (i) in connection with
workers compensation, unemployment insurance and other types of social security or (ii) to
secure (or to obtain letters of credit that secure) the performance of tenders, statutory
obligations, surety and appeals bonds, bids, leases, performance or payment bonds, purchase,
construction, sales contacts, and other similar obligations, in each case not incurred or
made in connection with the borrowing of money, the obtaining of advances or the payment of
the deferred purchase price of property;




          (d) Liens arising out of or in connection with any litigation or other legal proceeding
that is being contested in good faith by appropriate proceedings; provided,
however, that adequate reserves with



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respect thereto are maintained on the books of such Person in accordance with GAAP; and
provided further that subject to Section 6.01(f) (so long as such Lien is
discharged or released within 30 days of attachment thereof), any right to seizure, levy,
attachment, sequestration, foreclosure or garnishment with respect to Property of such
Person or any Subsidiary of such Person by reason of such Lien has not matured, or has been
and continues to be, effectively enjoined or stayed;




          (e) precautionary filings under the applicable Uniform Commercial Code made by a lessor
with respect to personal property leased to such Person or any Subsidiary of such Person;




          (f) other non-material Liens or encumbrances none of which secures Indebtedness for
Borrowed Money of the Borrower or any of its Subsidiaries or interferes materially with the
use of the Property affected in the ordinary conduct of the Borrower’s or its Subsidiaries’
business and which individually or in the aggregate do not have a Material Adverse Effect;




          (g) easements, rights-of-way, restrictions and other similar encumbrances and
exceptions to title existing or incurred in the ordinary course of business that, in the
aggregate, do not in any case materially detract from the value of the property subject
thereto or materially interfere with the ordinary conduct of the business of the Borrower
and its Subsidiaries, taken as a whole;




          (h) Liens created by Capital Leases, provided that the Liens created by any
such Capital Lease attach only to the Property leased to the Borrower or one of its
Subsidiaries pursuant thereto, (ii) purchase money Liens securing Indebtedness of the
Borrower or any of its Subsidiaries (including such Liens securing such Indebtedness
incurred within twelve months of the date on which such Property was acquired),
provided that all such Liens attach only to the Property purchased with the proceeds
of the Indebtedness secured thereby and only secure the Indebtedness incurred to finance
such purchase, (iii) Liens on receivables, customer charges, notes, ownership interests,
contracts or contract rights which are transferred to the purchaser of such receivables,
customer charges, notes, ownership interests, contracts or contract rights in connection
with such sale, securitization or monetization, provided that such Liens secure only
the obligations of the Borrower or any of its Subsidiaries in connection with such sale,
securitization or monetization and (iv) Liens created by leases that do not constitute
Capital Leases at the time such leases are entered into, provided that the Liens
created thereby attach only to the Property leased to the Borrower or one of its
Subsidiaries pursuant thereto.




          (i) Liens on cash and short term investments (i) deposited by the Borrower or any of
its Subsidiaries in accounts with or on behalf of futures contract brokers or other
counterparties or (ii) pledged by the Borrower or any of its Subsidiaries, in the case of
clause (i) or (ii) to secure its obligations with respect to contracts (including without
limitation, physical delivery, option (whether cash or financial), exchange, swap and future
contracts) for the purchase or sale of any energy-related commodity or interest rate or
currency rate management contracts;




          (j) Liens on (i) Property owned by a Project Financing Subsidiary or (ii) equity
interests in a Project Financing Subsidiary (including in each case a pledge of a
partnership interest, common stock or a membership interest in a limited liability company)
securing Indebtedness of the Borrower or any of its Subsidiaries incurred in connection with
a Project Financing; and




          (k) Liens on equity interests in an Unrestricted Subsidiary (including in each case a
pledge of a partnership interest, common stock or a membership interest in a limited
liability company) securing, subject to Section 5.02(e), Indebtedness of such Unrestricted
Subsidiary.




          “Permitted MLP Asset Transfer” means any contribution, disposition, merger or
other transfer of property or assets (including equity securities of any Person) to any MLP
or one or more MLP Subsidiaries by the Borrower or any Subsidiaries of its natural gas
pipeline Subsidiaries or field services Subsidiaries, excluding, however, any Local
Distribution Companies; provided that, after any such contribution, disposition,
merger or transfer, the Borrower and its Significant Subsidiaries owns, directly at least
one of the following:



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15



(a) CenterPoint Energy Gas Transmission Company’s interstate natural gas pipeline
that provides services to customers principally in Arkansas, Louisiana, Oklahoma and
Texas;




(b) CenterPoint Energy-Mississippi River Transmission Corporation’s interstate
natural gas pipeline that provides services to customers principally in Arkansas and
Missouri; and




(c) The Carthage to Perryville natural gas pipeline segment owned as the date hereof
by CenterPoint Energy Gas Transmission Company;


unless the disposition or transfer thereof is permitted under this Agreement (other than
under Section 5.02(b)).




          “Person” means an individual, partnership, corporation (including a business
trust), joint stock company, trust, unincorporated association, joint venture, limited
liability company or other entity, or a government or any political subdivision or agency
thereof.




          “Plan” means a Single Employer Plan or a Multiple Employer Plan.




          “Platform” has the meaning specified in Section 8.02(c).




          “Principal Property” means any natural gas distribution property, natural gas
pipeline or gas processing plant located in the United States, except any such property that
in the reasonable opinion of the board of directors (or other governing body) of Borrower is
not of material importance to the total business conducted by the Borrower and its
Consolidated Subsidiaries. “Principal Property” shall not include any oil or gas property
or the production or proceeds of production from an oil or gas producing property or the
production or any proceeds of production of gas processing plants or oil or gas or petroleum
products in any pipeline or storage field.




          “Project Finance Subsidiary” and “Project Finance Subsidiaries” means
any Subsidiary of the Borrower (or any other Person in which the Borrower directly or
indirectly owns a 50% or less interest) whose principal purpose is to incur Project
Financing or to become an owner of interests in a Person so created to conduct the business
activities for which such Project Financing was incurred, and substantially all the fixed
assets of which Subsidiary or Person are those fixed assets being financed (or to be
financed) in whole or in part by one or more Project Financings.




          “Project Financing” means any Indebtedness or lease obligations that do not
constitute Capital Leases at the time such leases are entered into, in each case that are
incurred to finance a project or group of projects (including any construction financing to
the extent that such Indebtedness (or other obligations) expressly are not recourse to the
Borrower or any of its Subsidiaries (other than a Project Financing Subsidiary) or any of
their respective Property other than the Property of a Project Financing Subsidiary and
equity interests in a Project Financing Subsidiary (including in each case a pledge of a
partnership interest, common stock or a membership interest in a limited liability company).




          “Property” means any interest or right in any kind of property or asset,
whether real, personal or mixed, owned or leased, tangible or intangible and whether now
held or hereafter acquired.




          “Pro Rata Share” of any amount means, with respect to any Lender, at any time,
the product of such amount times a fraction the numerator of which is the amount of such
Lender’s Revolving Commitment at such time (or, if the Commitments shall have terminated
pursuant to Section 2.08 or 6.01, such Lender’s Revolving Commitment as in effect
immediately prior to such termination) and the denominator of which is the Revolving
Facility at such time (or, if the Commitments shall have been terminated pursuant to Section
2.08 or 6.01, the Revolving Facility as in effect immediately prior to such termination).



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          “Public Debt Rating” means, as of any date, (a) at any time the senior
unsecured long-term debt of the Borrower is rated by S&P, by Moody’s and by Fitch and such
ratings are equivalent, such rating, (b) the middle of such ratings in the case where there
is a split between all such ratings or (c) if such ratings are split and two of the ratings
fall in the same level (the “Majority Level”), and the third rating is in a
different level then such rating shall be the Majority Level. For purposes of the
foregoing, (x) if only two of such three agencies issue a rating, the higher of such ratings
shall apply, provided that if the higher rating is two or more levels above the
lower rating, the rating next above the lower of the two shall apply; if only one of such
three agencies issues a rating, such rating shall apply and (y) if any such rating
established by S&P, Moody’s or Fitch shall be changed, such change shall be effective as of
the date on which such change is first announced publicly by the rating agency making such
change and (z) if S&P, Moody’s or Fitch shall change the basis on which ratings are
established or if any of S&P, Moody’s or Fitch shall cease to be in the business of rating
corporate debt obligations, the Borrower and the Administrative Agent shall negotiate in
good faith if necessary to amend this definition to reflect such changed rating system or
the unavailability of ratings from such rating agencies and, pending the effectiveness of
any such amendment, the Public Debt Rating shall be determined by reference to the rating
most recently in effect prior to such change or cessation, each reference to the Public Debt
Rating announced by S&P, Moody’s or Fitch, as the case may be, shall refer to the then
equivalent rating by S&P, Moody’s or Fitch, as the case may be.




          “Register” has the meaning specified in Section 8.07(c).




          “Regulation T” and “Regulation U” mean Regulation T and U,
respectively, of the Board or any other regulation hereafter promulgated by the Board to
replace the prior Regulation T or U, as the case may be, and having substantially the same
function.




          “Required Lenders” means, at any time, Lenders owed or holding at least 51% of
the sum of (a) the then aggregate unpaid principal amount of the Advances owing to the
Lenders, (b) the aggregate Available Amount of all Letters of Credit outstanding at such
time and (c) the aggregate Unused Revolving Credit Commitments at such time.




          “Requirements of Law” means, as to any Person, any law, statute or ordinance,
decree, requirement, order, judgment, rule, or regulation of any Governmental Authority.




          “Responsible Officer” means, with respect to any Person, its chief financial
officer, chief accounting officer, assistant treasurer, treasurer or comptroller of such
Person or any other officer of such Person whose primary duties are similar to the duties of
any of the previously listed officers of such Person.




          “Restricted Subsidiary” means all Subsidiaries of the Borrower other than
Unrestricted Subsidiaries.




          “Revolving Advances” has the meaning as set forth in Section 2.01.




          “Revolving Borrowing” means a borrowing consisting of Revolving Advances of the
same Type, made by the Lenders on the same day under Section 2.02.




          “Revolving Commitment” has the meaning set forth in Section 2.01(a).




          “Revolving Extensions of Credit” means, as to any Lender at any time, an amount
equal to the aggregate principal amount of all Revolving Advances held by such Lender then
outstanding.




          “Revolving Facility” has the meaning as set forth in Section 2.01.




          “Sale and Leaseback Transaction” means any arrangement with any Person
providing for the leasing to the Borrower or any Restricted Subsidiary of any Principal
Property (except for temporary leases for a term, including any renewal thereof of not more
than three years and except for leases between the


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17

Borrower and a Restricted Subsidiary or between Restricted Subsidiaries), which
Principal Property has been or is to be sold or transferred by the Borrower or any
Restricted Subsidiary to such Person.




          “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
and any successors thereto.




          “Second Extended Termination Date” has the meaning specified in Section 2.20.




          “Significant Subsidiary” means (i) for the purposes of determining what
constitutes an “Event of Default” under Sections 6.01(d), (e), and (f) a Subsidiary of the
Borrower (other than a Project Finance Subsidiary) whose total assets, as determined in
accordance with GAAP, represent at least 10% of the total assets of the Borrower, on a
consolidated basis, as determined in accordance with GAAP and (ii) for all other purposes
the “Significant Subsidiaries” shall be those Subsidiaries whose total assets, as determined
in accordance with GAAP, represent at least 10% of the total assets of the Borrower on a
consolidated basis, as determined in accordance with GAAP for the Borrower’s most recently
completed fiscal year and identified in the certificate most recently delivered pursuant to
Section 5.01(j)(ii).




          “Single Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA
Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so
maintained and in respect of which the Borrower or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be terminated.




          “Solvent” means, with respect to any Person on a particular date, that on such
date (a) the fair value of the property of such Person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such Person, (b) the
present fair salable value of the assets of such Person is not less than the amount that
will be required to pay the probable liability of such Person on its debts as they become
absolute and matured, (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as
they mature and (d) such Person is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person’s property would
constitute an unreasonably small capital. The amount of contingent liabilities at any time
shall be computed as the amount that, in the light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an
actual or matured liability.




          “Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time capital stock of
any other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of such limited
liability company, partnership, joint venture or other Person or (c) the beneficial interest
in such trust or estate is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more of its other Subsidiaries or by one or more of such
Person’s other Subsidiaries.




          “Swingline Limit” has the meaning assigned to such term in Section 2.03(a).




          “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time.




          “Swingline Lender” means any Lender, in such capacity, selected to be a lender
of Swingline Loans hereunder by the Borrower with the consent of the Administrative Agent.




          “Swingline Loan” means a Loan made pursuant to Section 2.03.



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18


          “Termination Date” means the earlier of the Maturity Date and the date of
termination in whole of the Commitments pursuant to Section 2.08 or 6.01 or if extended
pursuant to Section 2.20, the Extended Termination Date or Second Extended Termination Date,
as applicable.




          “Total Aggregate Outstanding Extensions of Credit” means, at any time, the
aggregate amount of Aggregate Outstanding Extensions of Credit of all Lenders outstanding at
such time.




          “Total Commitments” means, at any time, the aggregate amount of the Commitments
of all Lenders then in effect.




          “Total Debt” means, as of any date of determination, the sum of (i) the total
Indebtedness for Borrowed Money as shown on the consolidated balance sheet of Borrower and
its Consolidated Subsidiaries, determined without duplication of any Guarantee of
Indebtedness for Borrowed Money of Borrower by any of its Consolidated Subsidiaries or of
any Guarantee of Indebtedness of any such Consolidated Subsidiary by Borrower or any other
Consolidated Subsidiary of Borrower, and any Mandatory Payment Preferred Stock, less
(ii) such amount of Indebtedness for Borrowed Money attributable to amounts then outstanding
under receivables facilities or arrangements to the extent that such amount would not have
been shown as Indebtedness for Borrowed Money on a balance sheet prepared in accordance with
GAAP prior to January 1, 1997, less (iii) with respect to any Indexed Debt
Securities that are Fully Hedged and the liabilities in respect of which as shown on the
consolidated balance sheet of Borrower and its Consolidated Subsidiaries have increased from
the amount of liabilities in respect thereof at the time of their issuance by reason of an
increase in the price of the Indexed Asset relating thereto, the excess of (a) the aggregate
amount of liabilities in respect of such Indexed Debt Securities at the time of
determination over (b) the initial amount of liabilities in respect of such Indexed Debt
Securities at the time of their issuance, provided that at the time of determination
such increase in the price of the Indexed Asset relating to such Indexed Debt Securities has
not been recorded on such consolidated balance sheet, less (iv) Non-Recourse Debt of
the Borrower and its Subsidiaries.




          “True-Up Litigation” means any litigation or other Proceeding in connection
with the determination by the Public Utility Commission of Texas of the recovery by Parent
and its Subsidiaries of stranded costs and other amounts to be recovered in the true-up
process.




          “Type” has the meaning as set forth in the definition of “Advance”.




          “Unused Revolving Credit Commitment” means, with respect to any Lender at any
time, (a) such Lender’s Revolving Commitment at such time minus, without
duplication, (b) the sum of (i) the aggregate principal amount of all Revolving Advances and
Letter of Credit Advances made by such Lender (in its capacity as a Lender) and outstanding
at such time plus (ii) such Lender’s Pro Rata Share of (A) the aggregate principal
amount of all Letters of Credit outstanding at such time and (B) the aggregate principal
amount of all Letters of Credit Advances made by the Issuing Banks pursuant to Section
2.04(c) and outstanding at such time; provided, that in calculating any Lender’s Revolving
Commitment for the purposes of determining such Lender’s Unused Revolving Credit Commitment
pursuant to Section 2.07, the aggregate principal amount of Swingline Loans then outstanding
shall be deemed to be zero.




          “Unrestricted Subsidiary” means any Subsidiary of the Borrower and its direct
or indirect Subsidiaries that is an MLP Unrestricted Subsidiary or is designated by a
Responsible Officer of the Borrower as an Unrestricted Subsidiary, but only if (x) the
aggregate amount of Net Tangible Assets of all Unrestricted Subsidiaries (other than MLP
Unrestricted Subsidiaries) at the time of designation does not exceed or would not exceed as
a result of such designation the lesser of (a) 10% of the Net Tangible Assets of Parent and
(b) 15% of the Net Tangible Assets of the Borrower, (y) such designation and the Investment
of Borrower in such Subsidiary complies with the limitations in Section 5.02(i) and (z) such
Subsidiary: (i) has no Indebtedness with recourse to the Borrower and the Restricted
Subsidiaries except that permitted under Section 5.02(i); (ii) is not party to any
agreement, contract, arrangement or understanding with the Borrower or any Significant
Subsidiary of the Borrower unless the terms of any such agreement, contract, arrangement or
understanding and related transactions are substantially no less favorable to the Borrower
or such Significant Subsidiary than those that might be obtained at the time from Persons
who are not



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19



          Affiliates of the Borrower; (iii) is a Person with respect to which neither the
Borrower nor any of its Significant Subsidiaries has any direct or indirect obligation that
violates Section 5.02(i), (a) to subscribe for additional Capital Stock of such Person 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 (iv) does not, either alone or in the
aggregate, operate, directly or indirectly, all or substantially all of the business of the
Borrower and its Subsidiaries.




          Any designation of a Subsidiary of the Borrower as an Unrestricted Subsidiary shall be
evidenced by a certificate of a Responsible Officer of the Borrower giving effect to such
designation and a certificate executed by a Responsible Officer certifying that such
designation complied with the preceding conditions and was permitted by Section 5.02(i)
delivered to the Administrative Agent, for delivery to each Lender. If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted
Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this
Agreement and any Indebtedness of such Subsidiary shall be deemed to be incurred by a
Significant Subsidiary of the Borrower as of such date and, if such Indebtedness is not
permitted to be incurred as of such date under Section 5.02(i), the Borrower shall be in
default of such covenant. A Responsible Officer of the Borrower may at any time designate
any Unrestricted Subsidiary to be a Subsidiary; provided that such designation shall
be deemed to be an incurrence of Indebtedness by a Subsidiary of the Borrower of any
outstanding Indebtedness of such Unrestricted Subsidiary and such designation shall only be
permitted if (1) such Indebtedness is permitted under this Agreement 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.




          “Value” means, with respect to a Sale and Leaseback Transaction, as of any
particular time, the amount equal to the greater of (1) the net proceeds from the sale or
transfer of the property leased pursuant to such Sale and Leaseback Transaction or (2) the
fair value, in the opinion of the board of directors (or other governing body), of such
property at the time of entering into such Sale and Leaseback Transaction, in either case
divided first by the number of full years of the term of the lease and then multiplied by
the number of full years of such term remaining at the time of determination, without regard
to any renewal or extension options contained in the lease.




          “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the happening
of such a contingency.




          “Wholly-Owned” means, with respect to any Subsidiary of any Person, a
Subsidiary, all the outstanding capital stock (other than directors’ qualifying shares
required by law) or other ownership interest of which are at the time owned by such Person
or by one or more Wholly-Owned Subsidiaries of such Person, or both.




               SECTION 1.02 Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”.




               SECTION 1.03 Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles in effect from time
to time in the United States of America (“GAAP”).



ARTICLE II




AMOUNTS AND TERMS OF THE ADVANCES




                    SECTION 2.01 The Revolving Advances and Letters of Credit. (a) The Revolving
Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to
make advances to the Borrower (the “Revolving Advances”) from time to time on any Business
Day during the period from the Effective Date until


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20

the Termination Date in an aggregate amount not
to exceed at any time outstanding the amount set forth opposite such Lender’s name on Schedule
III hereof or, if such Lender has entered into any Assignment and Acceptance, set forth for
such Lender in the Register maintained by the Administrative Agent pursuant to Section 8.07(c), as
such amount may be reduced pursuant to Section 2.08 or increased pursuant to Section 2.21 (such
Lender’s “Revolving Commitment”, and, in the aggregate, the “Revolving Facility”).
Each Revolving Borrowing, in the case of a Revolving Borrowing consisting of Eurodollar Rate
Advances, shall be in minimum principal aggregate amounts of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof, or in the case of a Revolving Borrowing consisting of Base Rate
Advances, shall be in minimum principal aggregate amounts of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof, and shall consist of Revolving Advances of the same Type made on the
same day by the Lenders ratably according to their respective Revolving Commitments. Each
Swingline Loan shall be in an amount equal to $500,000 or a whole multiple of $100,000 in excess
thereof. Within the limits of each Lender’s Revolving Commitment, the Borrower may borrow under
this Section 2.01, prepay pursuant to Section 2.13 and reborrow under this Section 2.01.




               (b) The Letters of Credit. Prior to the Closing Date, the Existing Issuing Banks have
issued the Existing Letters of Credit which from and after the Closing Date shall constitute
Letters of Credit hereunder. Each Issuing Bank (other than the Existing Issuing Banks) severally
agrees, on the terms and conditions hereinafter set forth, to issue letters of credit (the
“Letters of Credit”) in U.S. Dollars for the account of the Borrower in support of
obligations (including, without limitation, performance, bid and similar bonding obligations and
credit enhancement) of the Borrower and its Affiliates, from time to time on any Business Day
during the period from the Effective Date until the Business Day before the Termination Date in an
aggregate Available Amount (i) for all Letters of Credit issued by such Issuing Bank not to exceed
at any time the lesser of (x) the Letter of Credit Facility at such time and (y) such Issuing
Bank’s Letter of Credit Commitment at such time and (ii) for each such Letter of Credit not to
exceed the Unused Revolving Credit Commitments of the Lenders at such time; provided,
however, that in no event shall the aggregate Available Amount for all Letters of Credit
exceed $200,000,000; provided, further, that neither Bank of America, National
Association, nor SunTrust Bank shall be required, without the consent of such Issuing Bank, to
issue Letters of Credit in excess of $100,000,000 outstanding for each such Issuing Bank. No
Letter of Credit shall have an expiration date (including all rights of the Borrower or the
beneficiary to require renewal) later than the Business Day before the Termination Date. Within
the limits of the Letter of Credit Facility, and subject to the limits referred to above, the
Borrower may request the issuance of Letters of Credit under this Section 2.01(b), repay any Letter
of Credit Advances resulting from drawings thereunder pursuant to Section 2.04(c) and request the
issuance of additional Letters of Credit under this Section 2.01(b); provided,
however, that neither Bank of America, National Association, nor SunTrust Bank shall be
required to issue Letters of Credit in excess of $100,000,000 outstanding for each such Issuing
Bank.



               (c) Total Revolving Commitments. Notwithstanding anything else contained herein, the
obligations of the Lenders to make Advances and of the Issuing Banks to issue Letters of Credit is
subject to the condition that the Total Aggregate Outstanding Extensions of Credit shall not exceed
the total of the Revolving Commitments.



               SECTION 2.02 Making the Revolving Advances. (a) Each Revolving Borrowing shall be
made on notice, given not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Revolving Borrowing in the case of a Revolving Borrowing
consisting of Eurodollar Rate Advances, or on the same Business Day as the date of the proposed
Revolving Borrowing in the case of a Revolving Borrowing consisting of Base Rate Advances, by the
Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof by
telecopier or electronic communication. Each such notice of a Revolving Borrowing (a “Notice
of Borrowing”) shall be by
telephone, confirmed immediately in writing, or telecopier or electronic communication,
complying in all material respects with the form of Exhibit B hereto, specifying therein
the requested (i) date of such Revolving Borrowing, (ii) Type of Revolving Advances comprising such
Revolving Borrowing, (iii) aggregate amount of such Revolving Borrowing, (iv) in the case of a
Revolving Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for each such
Revolving Advance and (v) whether any of such Revolving Borrowing shall be used by the Borrower to
repay commercial paper. Each Lender shall, before 11:00 A.M. (New York City time) on the date of
such Revolving Borrowing, in the case of a Revolving Borrowing consisting of Eurodollar Rate
Advances, or before 3:00 P.M. (New York City time) in the case of a Revolving Borrowing consisting
of Base Rate Advances, make available for the account of its Applicable Lending Office to the
Administrative Agent at the Administrative Agent’s Account, in same day funds, such Lender’s
ratable


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21

portion of such Revolving Borrowing. After the Administrative Agent’s receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the Borrower at the Administrative Agent’s
address referred to in Section 8.02 no later than 12:00 P.M. (New York City time) on such date, in
the case of a Revolving Borrowing consisting of Eurodollar Rate Advances, or 4:00 P.M. (New York
City time) on such date, in the case of a Revolving Borrowing consisting of Base Rate Advances.




               (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not
select Eurodollar Rate Advances for any Revolving Borrowing if the aggregate amount of such
Revolving Borrowing is less than $10,000,000 or if the obligation of the Lenders to make Eurodollar
Rate Advances shall then be suspended pursuant to Section 2.11 or 2.15 and (ii) the Eurodollar Rate
Advances may not be outstanding as part of more than twelve separate Revolving Borrowings.



               (c) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of
any Revolving Borrowing that the related Notice of Borrowing specifies is to be comprised of
Eurodollar Rate Advances, the Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or before the date
specified in such Notice of Borrowing for such Revolving Borrowing the applicable conditions set
forth in Article III, including, without limitation, any loss, cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the
Revolving Advance to be made by such Lender as part of such Revolving Borrowing when such Revolving
Advance, as a result of such failure, is not made on such date.



               (d) Unless the Administrative Agent shall have received notice from a Lender prior to the time
of any Revolving Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s ratable portion of such Revolving Borrowing, the Administrative Agent may assume that
such Lender has made such portion available to the Administrative Agent on the date of such
Revolving Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so made such ratable
portion available to the Administrative Agent, such Lender and the Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to the Borrower until
the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the
interest rate applicable at the time to Revolving Advances comprising such Revolving Borrowing and
(ii) in the case of such Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. If the
Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of
such interest paid by the Borrower for such period. If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount so repaid shall constitute such
Lender’s Revolving Advance as part of such Revolving Borrowing for purposes of this Agreement.



               (e) The failure of any Lender to make the Revolving Advance to be made by it as part of any
Revolving Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make
its Revolving Advance on the date of such Revolving Borrowing, but no Lender shall be responsible
for the failure of any other Lender to make the Revolving Advance to be made by such other Lender
on the date of any Revolving Borrowing.



               SECTION 2.03 Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to
make Swingline Loans to the Borrower from time to time on any Business Day during the period from
the Closing Date to the Termination Date, in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding
$100,000,000 or (ii) the Aggregate Outstanding Extensions of Credit exceeding the Total
Commitments; provided that the Swingline Lender shall not be required to make a Swingline
Loan to refinance an outstanding Swingline Loan (the “Swingline Limit”). The Swingline Loans may
from time to time be (i) Base Rate Advances, (ii) Money Market Rate Loans or (iii) a combination
thereof, as determined by the Borrower and notified to the Administrative Agent and the Swingline
Lender in accordance herewith and shall not be entitled to be converted into Eurodollar Rate
Advance. Within the foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow Swingline Loans. The Borrower hereby unconditionally
promises to pay to the Swingline Lender the then unpaid principal amount of each Swingline Loan on
the earlier of the Maturity Date and the first


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22

date after such Swingline Loan is made that is the
15th or last day of a calendar month and is at least two Business Days after such Swingline Loan is
made; provided that on each date that a Revolving Advance is made, the Borrower shall repay
all Swingline Loans.




               (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent and the
Swingline Lender of such request by telephone (confirmed pursuant to a Notice of Borrowing by
telecopy or email), not later than (i) 12:00 noon, New York City time, in the case of ABR Loans, or
(ii) 2:00 p.m., New York City time, in the case of Money Market Rate Loans, on the day of a
proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day), amount of the requested Swingline Loan, and whether the
requested Swingline Loan shall be a Base Rate Advance, a Money Market Rate Loan or a combination
thereof. Each Borrowing under the Swingline Limit shall be in an amount equal to $1,000,000 or a
whole multiple in excess thereof. The Swingline Lender shall make each Swingline Loan available to
the Borrower by means of a credit to the general deposit account of the Borrower with the Swingline
Lender (or, in the case of a Swingline Loan made to finance the reimbursement of any payment that
an Issuing Bank makes under a Letter of Credit as provided in Section 2.04(d), by remittance to the
Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.



               (c) The Swingline Lender may by written notice given to the Administrative Agent not later
than 10:00 a.m., New York City time, on any Business Day require the Banks to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Banks will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each
Bank, specifying in such notice such Bank’s Revolving Percentage of such Swingline Loan or Loans.
Each Bank hereby absolutely and unconditionally agrees, upon receipt of notice as provided above,
to pay to the Administrative Agent, for the account of the Swingline Lender, such Bank’s Commitment
Percentage of such Swingline Loan or Loans. Each Bank acknowledges and agrees that its obligation
to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each
Bank shall comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.02 with respect to Loans made by such
Bank (and Section 2.02 shall apply, mutatis mutandis, to the payment obligations of
the Bank), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Bank. The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party
on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of
the proceeds of a sale of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the
Administrative Agent to the Banks that shall have made their payments pursuant to this paragraph
and to the Swingline Lender, as their interests may appear; provided that any such payment so
remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if
and to the extent such payment is required to be refunded to the Borrower for any reason. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the
Borrower of any default in the payment thereof.



               SECTION 2.04 Issuance of and Drawings and Reimbursement Under Letters of Credit. (a)
Request for Issuance. Each Letter of Credit shall be issued upon notice, given not later
than 11:00 A.M. (New York City time) on the second Business Day prior to the date of the proposed
issuance of such Letter of Credit, by the Borrower to any Issuing Bank, which shall give to the
Administrative Agent for delivery to each Lender prompt notice thereof by telecopier or electronic
communication. Each such notice of issuance of a Letter of Credit shall be substantially in the
form of Exhibit H attached hereto, or as agreed between the Borrower and each Issuing Bank
(a “Notice of Letter of Credit Issuance”), shall be by telephone (conveying the information
contained on Exhibit H attached hereto), confirmed immediately in writing, or by telecopier
or electronic communication. If the requested form of such Letter of Credit is acceptable to such
Issuing Bank in its reasonable discretion, such Issuing Bank will, upon fulfillment of the
applicable conditions set forth in Article III, make such Letter of Credit available to the
Borrower at its office referred to in Section 8.02 or as otherwise agreed with the Borrower in
connection with such issuance.


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               (b) Letter of Credit Reports. Each Issuing Bank shall furnish to the Administrative
Agent (A) on the first Business Day of each week a written report summarizing issuance and
expiration dates of Letters of Credit issued by such Issuing Bank during the previous week and
drawings during such week under all Letters of Credit issued by such Issuing Bank, (B) for delivery
to each Lender on the first Business Day of each month a written report summarizing issuance and
expiration dates of Letters of Credit issued by such Issuing Bank during the preceding month and
drawings during such month under all Letters of Credit issued by such Issuing Bank and (C) to the
Administrative Agent and each Lender on the first Business Day of each calendar quarter a written
report setting forth the average daily aggregate Available Amount during the preceding calendar
quarter of all Letters of Credit issued by such Issuing Bank.



               (c) Participations in Letters of Credit. Upon the issuance of a Letter of Credit by
any Issuing Bank under Section 2.04(a), such Issuing Bank shall be deemed, without further action
by any party hereto, to have sold to each Lender, and each Lender shall be deemed, without further
action by any party hereto, to have purchased from such Issuing Bank, a participation in such
Letter of Credit in an amount for each Lender equal to such Lender’s Pro Rata Share of the
Available Amount of such Letter of Credit, effective upon the issuance of such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay such Lender’s Pro Rata Share of each L/C Disbursement made by such
Issuing Bank and not reimbursed by the Borrower forthwith on the date due as provided in Section
2.09(b) by making available for the account of its Applicable Lending Office to the Administrative
Agent for the account of such Issuing Bank by deposit to the Administrative Agent’s Account, in
same day funds, an amount equal to such Lender’s Pro Rata Share of such L/C Disbursement. Each
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
Section 2.04(c) in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and continuance of a Default or
an Event of Default or the termination of the Commitments, and that each such payment shall be made
without any off-set, abatement, withholding or reduction whatsoever. If and to the extent that any
Lender shall not have so made the amount of such L/C Disbursement available to the Administrative
Agent, such Lender agrees to pay to the Administrative Agent forthwith on demand such amount
together with interest thereon, for each day from the date such L/C Disbursement is due pursuant to
Section 2.09(b) until the date such amount is paid to the Administrative Agent, at the Federal
Funds Rate for its account or the account of such Issuing Bank, as applicable. If such Lender
shall pay to the Administrative Agent such amount for the account of such Issuing Bank on any
Business Day, such amount so paid in respect of principal shall constitute a Letter of Credit
Advance made by such Lender on such Business Day for purposes of this Agreement, and the
outstanding principal amount of the Letter of Credit Advance made by such Issuing Bank shall be
reduced by such amount on such Business Day.



               (d) Drawing and Reimbursement. The payment by any Issuing Bank of a draft drawn under
any Letter of Credit shall constitute for all purposes of this Agreement the making by such Issuing
Bank of a Letter of Credit Advance, which shall be a Base Rate Advance, in the amount of such
draft. The Borrower may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.04 that such payment be financed with a Swingline Loan in an equivalent
amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be
discharged and replaced by the resulting Base Rate Revolving Borrowing or Swingline Loan.



               (e) Failure to Make Letter of Credit Advances. The failure of any Lender to make the
Letter of Credit Advance to be made by it on the date specified in Section 2.04(c) shall not
relieve any other Lender of its obligation hereunder to make its Letter of Credit Advance on such
date, but no Lender shall be responsible for the failure of any other Lender to make the Letter of
Credit Advance to be made by such other Lender on such date.



               SECTION 2.05 The CAF Advances. (a) From time to time on any Business Day during the
period from the Effective Date until the Termination Date, the Borrower may request CAF Advances
from the Lenders in amounts such that the Total Aggregate Outstanding Extensions of Credit at any
time shall not exceed the total of the Revolving Commitments at such time (the “CAF
Facility”).



               (b) Under the terms and conditions set forth below, the Borrower may borrow, repay pursuant to
Section 2.09 and reborrow under this Section 2.05.



               SECTION 2.06 Competitive Bid Procedure. (a) In order to request a CAF Advance, the
Borrower shall deliver to the Administrative Agent a written notice in the form of Exhibit
E, attached hereto (a


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“Competitive Bid Request”), to be received by the Administrative
Agent (i) in the case of each CAF Eurodollar Rate Advance, not later than 3:00 P.M. (New York City
time), four (4) Business Days before the Borrowing Date specified for such CAF Eurodollar Rate
Advance and (ii) in the case of each Fixed Rate Advance, not later than 11:00 A.M. (New York City
time), one (1) Business Day before the Borrowing Date specified for such Fixed Rate Advance. Each
Competitive Bid Request shall in each case refer to this Agreement and specify (i) the date of
Borrowing of such CAF Advances (which shall be a Business Day), (ii) the aggregate principal amount
thereof, (iii) whether the CAF Advances then being requested are to be CAF Eurodollar Rate Advances
or Fixed Rate Advances, (iv) the maturity date for each CAF Advance requested to be made and (v)
the interest payment dates for each CAF Advance requested to be made. The Administrative Agent
shall promptly notify each Lender by telex or facsimile transmission of the contents of each
Competitive Bid Request received by it. Each Competitive Bid Request may solicit bids for CAF
Advances in an aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000 in
excess thereof and for not more than three alternative maturity dates for such CAF Advances. The
maturity date for each CAF Advance shall be not less than 15 days nor more than 180 days after the
applicable date of CAF Borrowing (and in any event shall not extend beyond the Termination Date).




               (b) Each Lender may, in its sole discretion, irrevocably offer to make one or more CAF
Advances to the Borrower responsive to each Competitive Bid Request from the Borrower. Any such
irrevocable offer by a Lender must be received by the Administrative Agent, in the form of
Exhibit F hereto (a “Competitive Bid”), (i) in the case of each CAF Eurodollar Rate
Advance, not later than 10:30 A.M. (New York City time), three (3) Business Days before the
Borrowing Date specified for such CAF Eurodollar Rate Advance and (ii) in the case of each Fixed
Rate Advance, not later than 9:30 A.M. (New York City time) on the Borrowing Date specified for
such Fixed Rate Advance. Competitive Bids that do not conform substantially to the format of
Exhibit F may be rejected by the Administrative Agent after conferring with, and upon the
instruction of, the Borrower, and the Administrative Agent shall notify the Lender of such
rejection as soon as practicable. Each Competitive Bid shall refer to this Agreement and (i)
specify the maximum principal amount of CAF Advances for each maturity date (which shall be in an
aggregate principal amount not less than $5,000,000 or an integral multiple of $1,000,000 in excess
thereof and which may equal, but not exceed, the principal amount requested for such maturity date
by the Borrower) and the aggregate maximum principal amount of CAF Advances for all maturity dates
(which amount, with respect to any Lender, may exceed such Lender’s Commitment) that the Lender is
willing to make to the Borrower, and (ii) specify the CAF Rate at which the Lender is prepared to
make each such CAF Advance. A Competitive Bid submitted by a Lender pursuant to this Section
2.06(b) shall be irrevocable absent manifest error.



               (c) The Administrative Agent shall (i) in the case of each CAF Eurodollar Rate Advance, not
later than 11:00 A.M. (New York City time) three (3) Business Days before the Borrowing Date
specified for such CAF Eurodollar Rate Advance and (ii) in the case of each Fixed Rate Advance, not
later than 10:00 A.M. (New York City time) on the Borrowing Date specified for such Fixed Rate
Advance, notify the Borrower in writing of all the Competitive Bids made (arranging each such bid
in ascending interest rate order), and the CAF Rate or Rates
and the maximum principal amount of each CAF Advance in respect of which a Competitive Bid was
made, and the identity of the Lender that made each bid. The Administrative Agent shall send a copy
of all Competitive Bids to the Borrower for its records as soon as practicable after completion of
the bidding process set forth in this Section 2.06.



               (d) The Borrower may in its sole and absolute discretion, subject only to the provisions of
this Section 2.06(d), accept or reject any Competitive Bid referred to in Section 2.06(c);
provided, however, that the aggregate amount of the Competitive Bids for CAF
Advances so accepted by the Borrower may not exceed the lesser of (i) the principal amount of the
applicable CAF Borrowing requested by the Borrower in respect thereof and (ii) the amount of the
Commitments less the Total Aggregate Outstanding Extensions of Credit then outstanding, after
giving effect to the application of the proceeds of such respective CAF Borrowing on the Borrowing
Date therefor. The Borrower shall notify the Administrative Agent in writing whether and to what
extent it has decided to accept or reject any or all of the bids referred to in Section 2.06(c) by
delivering to the Administrative Agent a written notice in the form of Exhibit G hereto (a
“Competitive Bid Confirmation”), (i) in the case of each CAF Eurodollar Rate Advance, not
later than 1:00 P.M. (New York City time), three (3) Business Days before the Borrowing Date
specified for such CAF Eurodollar Rate Advance and (ii) in the case of each Fixed Rate Advance, not
later than 11:00 A.M. (New York City time) on the Borrowing Date specified for such Fixed Rate
Advance, which Competitive Bid Confirmation shall specify the principal amount of CAF Advances for
each relevant maturity date to be made by each such bidding Lender (which amount for each such
maturity date shall be equal to or less than the maximum amount for such maturity date specified in
the Competitive Bid of such Lender, and for all


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maturity dates included in such Competitive Bid in
respect thereof shall be equal to or less than the aggregate maximum amount specified in such
Competitive Bid for all such maturity dates); provided, however, that (A) the
failure by the Borrower to so deliver a Competitive Bid Confirmation by the specified time shall be
deemed to be a rejection of all the bids referred to in Section 2.06(c) for the related Competitive
Bid Request; (B) the Borrower shall not accept a bid made at a particular CAF Rate for a particular
maturity if the Borrower has decided to reject a bid made at a lower CAF Rate for such maturity;
(C) if the Borrower shall accept bids made at a particular CAF Rate for a particular maturity but
shall be restricted by other conditions hereof from borrowing the maximum principal amount of CAF
Advances in respect of which bids at such CAF Rate have been made, then the Borrower shall accept a
pro rata portion of each bid made at such CAF Rate based as nearly as possible on the respective
maximum principal amounts of CAF Advances offered to be made by the relevant Lenders pursuant to
such bids; and (D) no bid shall be accepted for a CAF Advance by any Lender unless such CAF Advance
is in an aggregate principal amount not less than $5,000,000 or an integral multiple of $1,000,000
in excess thereof. Notwithstanding the foregoing, if it is necessary for the Borrower to accept a
pro rata allocation of the bids made in response to a Competitive Bid Request (whether pursuant to
the events specified in clause (C) above or otherwise) and the available principal amount of CAF
Advances to be allocated among the Lenders is not sufficient to enable CAF Advances to be allocated
to each Lender in an aggregate principal amount not less than $5,000,000 or in integral multiples
of $1,000,000 in excess thereof, then the Borrower shall, subject to clause (D) above, select the
Lenders to be allocated such CAF Advances and shall round allocations up or down to the next higher
or lower multiple of $1,000,000 as it shall deem appropriate; provided that the allocations
among the Lenders to be allocated such CAF Advances shall be made pro rata based as nearly as
possible on the respective maximum principal amounts of CAF Advances offered to be made by such
Lenders. The Competitive Bid Confirmation given by the Borrower pursuant to this Section 2.06(d)
shall be irrevocable.




               (e) Upon receipt from the Administrative Agent of the Eurodollar Rate applicable to any CAF
Eurodollar Rate Advance to be made by any Lender pursuant to a Competitive Bid that has been
accepted by the Borrower pursuant to this Section 2.06, the Administrative Agent shall notify such
Lender of the applicable Eurodollar Rate.



               (f) If the Administrative Agent shall at any time elect to submit a Competitive Bid in its
capacity as a Lender, it shall submit such bid directly to the Borrower by (i) in the case of a CAF
Eurodollar Rate Advance, not later than 10:15 A.M. (New York City time), and (ii) in the case of a
Fixed Rate Advance, not later than 9:15 A.M. (New York City time), in each case, on the Business
Day on which the other Lenders are required to submit their bids to the Administrative Agent
pursuant to Section 2.06(b) above.



               (g) If the Borrower accepts pursuant to Section 2.06(d) one or more of the offers made by any
Lender or Lenders, the Administrative Agent shall promptly notify each Lender that has made such an
offer of the aggregate amount of such CAF Advances to be made on the Borrowing Date for each
maturity date and of the
acceptance or rejection of any offers to make such CAF Advances made by such Lender. Each
Lender that is to make a CAF Advance shall, before 12:00 Noon (New York City time) on the Borrowing
Date specified in the Competitive Bid Request applicable thereto, make available to the
Administrative Agent at its office set forth in Section 8.02 the amount of CAF Advances to be made
by such Lender, in immediately available funds. The Administrative Agent shall, no later than 1:00
P.M. (New York City time) on such Borrowing Date, make such funds available to the Borrower at the
Borrower’s account as shall be designated by it to the Administrative Agent from time to time. As
soon as practicable after each Borrowing Date, the Administrative Agent shall notify each Lender of
the aggregate amount of CAF Advances advanced on such Borrowing Date and the respective maturity
dates thereof.



               (h) The Borrower shall repay to the Administrative Agent for the account of each Lender that
has made a CAF Advance (or the Eligible Assignee in respect thereof, as the case may be) on the
maturity date of each CAF Advance (such maturity date being that specified by the Borrower for
repayment of such CAF Advance in the related Competitive Bid Request) the then unpaid principal
amount of such CAF Advance. The Borrower shall not, without the consent of the relevant Lender,
have the right to prepay, at its option, any principal amount of any CAF Advance.


All notices required by this Section 2.06 shall be made in accordance with Section 8.02 hereof;
provided, however, that each request or notice required to be made under Section
2.06(a) or 2.05(d) by the Borrower may be made by


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the giving of telephone notice to the
Administrative Agent that is promptly confirmed by delivery of a notice in writing (complying in
all material respects with the form of Exhibit B or Exhibit E, as the case may be)
to the Administrative Agent.




               SECTION 2.07 Fees. (a) Commitment Fee. The Borrower agrees to pay to the
Administrative Agent for the account of each Lender the commitment fee on the aggregate amount of
such Lender’s Unused Revolving Credit Commitment, from the Effective Date in the case of each
Initial Lender and from the effective date specified in the Assignment and Acceptance pursuant to
which it became a Lender in the case of each other Lender until the Termination Date at a rate per
annum equal to the Applicable Percentage in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and December, commencing June 30, 2007, and on the
Termination Date.



               (b) Agent’s Fees. The Borrower shall pay to the Administrative Agent for its own
account such fees as may from time to time be agreed between the Borrower and the Administrative
Agent.



               (c) Letter of Credit Fees, Etc. (i) The Borrower shall pay to the Administrative
Agent for the account of each Lender a commission, payable in arrears quarterly on the last day of
each March, June, September and December, and on the Termination Date, on such Lender’s Pro Rata
Share of the average daily aggregate Available Amount during such quarter of all Letters of Credit
outstanding from time to time at the rate of the Applicable Margin for Eurodollar Rate Advances
under the Revolving Facility.



               (ii) The Borrower shall pay to each Issuing Bank, for its own account, a fronting fee payable
in arrears quarterly on the last day of each March, June, September and December, and on the
Termination Date, in an amount equal to 0.125% on the average daily aggregate Available Amount
during such quarter of all Letters of Credit issued by such Issuing Bank and outstanding from time
to time.



               (iii) The Borrower shall pay to each Issuing Bank, for its own account, issuance fees and
transfer fees in connection with the issuance or administration of each Letter of Credit as the
Borrower and such Issuing Bank shall agree.



               (iv) The Borrower shall pay the Applicable Utilization Fees in accordance with Section
2.10(a).



               (v) The Administrative Agent shall, promptly following its receipt thereof, distribute to the
Lenders all commissions received by the Administrative Agent for their respective accounts pursuant
to this Section 2.07(c).



               SECTION 2.08 Termination or Reduction of the Revolving Commitments. The Borrower
shall have the right, upon at least three Business Days’ notice to the Administrative Agent, to
terminate in whole or permanently reduce ratably in part the unused portions of the respective
Revolving Commitments of the Lenders, provided that (i) each partial reduction shall be in
a minimum aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof
and (ii) no such termination or reduction shall be permitted if, after giving effect thereto and to
any prepayments made under Section 2.13 by the Borrower on the effective date thereof, the Total
Aggregate Outstanding Extensions of Credit then outstanding would exceed the Total Commitments then
in effect. Any terminated or permanently reduced portion of the respective Revolving Commitments
of the Lenders may not be reinstated.



               Each reduction of Revolving Commitments pursuant to this Section 2.08 shall be applied pro
rata to the Revolving Commitments of each Lender. If at any time, including after giving effect to
any reduction of the Revolving Commitments pursuant to this Section 2.08, the Total Aggregate
Outstanding Extensions of Credit exceed the Total Commitments, the Borrower shall be obligated,
first, to prepay the Revolving Advances and the Letter of Credit Advances in the amount of
such excess and second, to prepay the CAF Advances (whether or not consented to by the
relevant Lender) to the extent that the aggregate amount of CAF Advances exceeds such Total
Commitments after prepayment of all Revolving Advances and Letter of Credit Advances.


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               SECTION 2.09 Repayment. (a) Revolving Advances. The Borrower shall repay
to the Administrative Agent for the ratable account of the Lenders on the Termination Date the
aggregate principal amount of the Revolving Advances then outstanding.



               (b) Letter of Credit Advances. The Borrower shall repay to the Administrative Agent
for the account of each Issuing Bank and each other Lender that has made a Letter of Credit Advance
on or before the date of such payment if the Borrower receives notice of such payment on or before
10:00 a.m. (New York City time) on the date such payment is made by such Issuing Bank and if such
notice is received after 10:00 a.m. (New York City time) on the next Business Day after such
payment is to be made by such Issuing Bank, the outstanding principal amount of each Letter of
Credit Advance made by each of them.



               (c) Obligations Absolute.




          (i) The Borrower’s payment obligations under Section 2.09 shall be absolute and
unconditional under any and all circumstances and irrespective of any set-off, counterclaim
or defense to payment that the Borrower may have or have had against the relevant Issuing
Bank or any beneficiary of a Letter of Credit other than a defense based upon the gross
negligence or willful misconduct of such Issuing Bank or violation of the standards of care
specified in the Uniform Commercial Code of the State of New York.




          (ii) The Borrower also agrees with each Issuing Bank that no Issuing Bank shall be
responsible for, and the Borrower’s payment obligations under Section 2.09 shall not be
affected by, among other things, (i) the validity or genuineness of documents or of any
endorsements thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, (ii) any dispute between or among the Borrower and any beneficiary of
any Letter of Credit or any other party to which such Letter of Credit may be transferred or
(iii) any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit
or any such transferee.




          (iii) No Issuing Bank shall be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however transmitted, in
connection with any
Letter of Credit, except for errors or omissions caused by such Issuing Bank’s gross
negligence or willful misconduct or in violation of the standards of care specified in the
Uniform Commercial Code of the State of New York.




          (iv) The Borrower agrees that any action taken or omitted by any Issuing Bank under or
in connection with any Letter of Credit or the related drafts or documents, if done in the
absence of gross negligence or willful misconduct and in accordance with the standards of
care specified in the Uniform Commercial Code of the State of New York, shall be binding on
the Borrower and shall not result in any liability of such Issuing Bank to the Borrower.



               SECTION 2.10 Interest. (a) Scheduled Interest. The Borrower shall pay
interest on the unpaid principal amount of each Revolving Advance and Letter of Credit Advance
owing to each Lender from the date of such Revolving Advance and Letter of Credit Advance to but
excluding the date such principal amount shall be paid in full, at the following rates per annum:




          (i) Base Rate Advances. During such periods as such Revolving Advance or
Letter of Credit Advance is a Base Rate Advance (excluding each Swingline Loan), a rate per
annum equal at all times to the sum of (x) the Base Rate in effect from time to time
plus (y) the Applicable Margin in effect from time to time plus (z) the
Applicable Utilization Fee, payable in arrears quarterly on the last day of each March,
June, September and December, during such periods and on the date such Base Rate Advance
shall be Converted or paid in full.




          (ii) Eurodollar Rate Advances. During such periods as such Advance is a
Revolving Advance or Letter of Credit Advance bearing interest at the Eurodollar Rate, a
rate per annum equal at all times during each Interest Period for such Revolving Advance to
the sum of (x) the Eurodollar Rate for



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such Interest Period for such Revolving Advance or Letter of Credit Advance
plus (y) the Applicable Margin in effect from time to time plus (z) the
Applicable Utilization Fee, payable in arrears on the last day of such Interest Period and,
if such Interest Period has a duration of more than three months, on each day that occurs
during such Interest Period every three months from the first day of such Interest Period
and on the date such Eurodollar Rate Advance shall be Converted or paid in full.




     (iii) CAF Eurodollar Rate Advances. In the case of each CAF Eurodollar Rate
Advance, a rate per annum equal at all times to the sum of the Eurodollar Rate applicable to
such CAF Advance plus or minus, as the case may be, the CAF Margin specified by a Lender
with respect to such CAF Advance in its Competitive Bid submitted pursuant to Section
2.06(b), payable on the date or dates specified in the relevant Competitive Bid Request.




     (iv) Swingline Loans. In the case of each Swingline Loan, a rate per annum
equal at all times to (x) the sum of the Base Rate in effect from time to time plus
that Applicable Margin in effect from time to time, or (y) the Money Market Rate, at the
election of the Borrower pursuant to Section 2.03, payable in arrears quarterly on the last
day of each March, June, September and December and on the date of payment of such Swingline
Loan.



          (b) Default Interest. Upon the occurrence and during the continuance of any default
in the payment of any amount owed hereunder, the Administrative Agent may, and upon the request of
the Required Lenders shall, require the Borrower to pay interest (“Default Interest”) on
(i) the unpaid principal amount of each Revolving Advance or Letter of Credit Advance past due and
owing to each Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
above, at a rate per annum equal at all times to 2.00% per annum above the rate per annum required
to be paid on such Revolving Advance or Letter of Credit Advance pursuant to clause (a)(i), (a)(ii)
or (a)(iii) above and (ii) to the fullest extent permitted by law, the amount of any interest, fee
or other amount payable hereunder that is not paid when due, from the date such amount shall be due
until such amount shall be paid in full, payable in arrears on the date such amount shall be paid
in full and on demand, at a rate per annum equal at all times to 2.00% per annum above the rate per
annum required to be paid on Base Rate Advances pursuant to clause (a)(i) above; provided,
however, that following acceleration of the Advances pursuant to Section 6.01, Default
Interest shall accrue and be payable hereunder whether or not previously required by the
Administrative Agent.




          SECTION 2.11 Interest Rate Determination. (a) The Administrative Agent shall give
prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the
Administrative Agent for purposes of Section 2.10(a)(i), (ii) or (iii).




          (b) If, with respect to any Eurodollar Rate Advances, the Required Lenders notify the
Administrative Agent that the Eurodollar Rate for any Interest Period for such Revolving Advances
or Letter of Credit Advances will not adequately reflect the cost to such Required Lenders of
making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period,
the Administrative Agent shall forthwith so notify the Borrower and the Lenders, whereupon (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to make, or to
Convert Revolving Advances or Letter of Credit Advances into, Eurodollar Rate Advances shall be
suspended until the Administrative Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist. This Section shall not apply to Swingline
Loans, which may not be converted or continued.




          (c) If the Borrower shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest
Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the
Lenders and such Revolving Advances or Letter of Credit Advances will automatically, on the last
day of the then existing Interest Period therefor, Convert into Base Rate Advances. If no Advances
are outstanding at the time of delivery of a Notice of Borrowing with respect to Eurodollar Rate
Advances and the Borrower shall fail to select an Interest Period for such Advances, such Advances
shall be made as Base Rate Advances.


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          (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
comprising any Revolving Borrowing shall be reduced, by payment or prepayment or otherwise, to less
than $10,000,000, such Revolving Advances shall automatically Convert into Base Rate Advances.




          (e) Upon the occurrence and during the continuance of any Event of Default under Section
6.01(a), (i) each Eurodollar Rate Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders
to make, or to Convert Revolving Advances into, Eurodollar Rate Advances shall be suspended.




          SECTION 2.12 Optional Conversion of Revolving Advances. The Borrower may on any
Business Day, upon notice given to the Administrative Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed Conversion and subject to
the provisions of Sections 2.11 and 2.15, Convert all Revolving Advances of one Type comprising the
same Borrowing into Revolving Advances of the other Type; provided, however, that
any Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last
day of an Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate Advances
into Eurodollar Rate Advances shall be in an amount not less than the minimum amount specified in
Section 2.02(b) and no Conversion of any Revolving Advances shall result in more separate
Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion shall, within
the restrictions specified above, specify (i) the date of such Conversion, (ii) the Revolving
Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for each such Revolving Advance. Each notice of Conversion
shall be irrevocable and binding on the Borrower.




          SECTION 2.13 Optional Prepayments of Revolving Advances. The Borrower may, upon at
least two Business Days’ notice (or such shorter or no notice as may be satisfactory to the
Administrative Agent) to the Administrative Agent (and, in the case of prepayment of a Swingline
Loan, the Swingline Lender), in the case of a Revolving Borrowing consisting of Eurodollar Rate
Advances, or upon same day notice to the Administrative Agent, in the case of a Revolving Borrowing
consisting of Base Rate Advances, stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal amount
of the Revolving Advances comprising part of the same Revolving Borrowing in whole or ratably in
part, together with accrued interest to the date of such prepayment on the principal amount
prepaid; provided, however, that (x) each partial prepayment shall be in a minimum
aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof
and (y) in the event of any such prepayment of a Eurodollar Rate Advance, the Borrower shall be
obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(c).




          SECTION 2.14 Increased Costs. (a) If, after the date hereof, due to either (i) the
introduction of or any change in or in the interpretation of any law or regulation or (ii) the
compliance with any guideline or request from any central bank or other governmental authority
(whether or not having the force of law), there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining Eurodollar Rate Advances or CAF Eurodollar Rate
Advances (excluding for purposes of this Section 2.14 any such increased costs resulting from (A)
Taxes or Other Taxes (as to which Section 2.17 shall govern), (B) net income taxes and franchise
taxes imposed on such Lender as a result of a present or former connection between the jurisdiction
of the government or taxing authority imposing such tax and such Lender other than a connection
arising solely from such Lender having executed, delivered or performed its obligations or received
a payment under, or enforced, this Agreement or the Advances and (C) changes in the rate of tax on
the overall net income of such Lender), then the Borrower shall from time to time, upon demand by
such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender additional amounts sufficient to compensate such Lender for
such actual increased cost; provided, however, that before making any such demand,
each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Applicable Lending Office if the making of such a
designation would avoid the need for, or reduce the amount of, such increased cost and would not,
in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. A
certificate as to the amount of such increased cost, submitted to the Borrower and the
Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error.




          (b) If any Lender determines in good faith that compliance with any law or regulation or any
guideline or request from any central bank or other governmental authority (whether or not having
the force of law) affects or would affect the amount of capital required or expected to be
maintained by such Lender or any


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corporation controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender’s commitment to lend hereunder and other commitments of
this type, then, upon demand by such Lender (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to the Administrative Agent for the account of such Lender, from
time to time as specified by such Lender, additional amounts sufficient to compensate such Lender
or such corporation in the light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of such Lender’s commitment to
lend hereunder. A certificate as to such amounts submitted to the Borrower and the Administrative
Agent by such Lender shall be conclusive and binding for all purposes, absent manifest error. The
Borrower shall pay to the Administrative Agent for the account of such Lender or to the
Administrative Agent for its own account, as the case may be, the amount shown as due on any such
certificate within 10 Business Days after receipt thereof.




          (c) The agreements contained in this Section 2.14 shall survive the termination of this
Agreement and the payment of all amounts payable hereunder; provided, however, that
in no event shall the Borrower be obligated to reimburse or compensate any Lender for amounts
contemplated by this Section 2.14 for any period prior to the date that is 90 days prior to the
date upon which such Lender requests in writing such reimbursement or compensation from the
Borrower.




          SECTION 2.15 Illegality. Notwithstanding any other provision of this Agreement, if
any Lender shall notify the Administrative Agent that it has determined in good faith that the
introduction of or any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it is unlawful, for any
Lender or its Eurodollar Lending Office to perform its obligations hereunder to make Eurodollar
Rate Advances or CAF Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances or
CAF Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance or CAF Eurodollar Rate
Advance, as the case may be, will automatically, upon such demand, Convert into a Base Rate Advance
or an Advance that bears interest at the rate set forth in Section 2.10(a)(i), as the case may be,
and (b) the obligation of the Lenders to make Eurodollar Rate Advances or CAF Eurodollar Rate
Advances or to Convert Revolving Advances into, Eurodollar Rate Advances shall be suspended until
the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing
such suspension no longer exist; provided, however, that before making any such
demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal
and regulatory restrictions) to designate a different Eurodollar Lending Office if the making of
such a designation would allow such Lender or its Eurodollar Lending Office to continue to perform
its obligations to make Eurodollar Rate Advances or CAF Eurodollar Rate Advances, as the case may
be, or to continue to fund or maintain Eurodollar Rate Advances or CAF Eurodollar Rate Advances, as
the case may be, and would not, in the judgment of such Lender, be otherwise disadvantageous to
such Lender.




          SECTION 2.16 Payments and Computations. (a) The Borrower shall make each payment
hereunder and under the Notes (if any), irrespective of any right of counterclaim or set-off, not
later than 12:00 Noon (New York City time) on the day when due in U.S. dollars to the
Administrative Agent at the Administrative Agent’s Account in same day funds, except payments to be
made directly to the Swingline Lender as expressly provided herein. The Administrative Agent will
promptly thereafter cause to be distributed like funds relating to the payment of principal or
interest or facility fees ratably (other than amounts payable pursuant to Sections 2.06, 2.14, 2.17
or 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like
funds relating to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be applied in accordance with the terms
of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the
information contained therein in the Register pursuant to Section 8.07(c), from and after the
effective date specified in such Assignment and Acceptance, the Administrative Agent shall make all
payments hereunder and under the Notes or CAF Notes (if any) in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such effective date directly
between themselves.




          (b) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due hereunder or under the Note or CAF Note, as the case may be, held by
such Lender (if any), to charge from time to time against any or all of the Borrower’s accounts
with such Lender any amount so due.




          (c) All computations of interest based on the Base Rate and of facility fees and utilization
fees shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the
case may be, and all



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computations of interest based on the Eurodollar Rate, the CAF Rate or the Federal Funds Rate
or in respect of Fixed Rate Advances shall be made by the Administrative Agent on the basis of a
year of 360 days, in each case for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest or fees are payable. Each
determination by the Administrative Agent of an interest rate hereunder shall be prima facie
evidence of the correctness thereof.




          (d) Whenever any payment hereunder or under the Notes or CAF Notes (if any) shall be stated to
be due on a day other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the computation of
payment of interest or facility fee, as the case may be; provided, however, that,
if such extension would cause payment of interest on or principal of Eurodollar Rate Advances or
CAF Eurodollar Rate Advances to be made in the next following calendar month, such payment shall be
made on the next preceding Business Day.




          (e) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Lenders hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has made such payment in
full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon
such assumption, cause to be distributed to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent the Borrower shall not have so made such payment
in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith
on demand such amount distributed to such Lender together with interest thereon, for each day from
the date such amount is distributed to such Lender until the date such Lender repays such amount to
the Administrative Agent, at the Federal Funds Rate.




          SECTION 2.17 Taxes. (a) Any and all payments by the Borrower to or for the account
of any Lender or the Administrative Agent hereunder or under the Notes or CAF Notes (if any) or any
other documents to be delivered hereunder shall be made, in accordance with Section 2.16 or the
applicable provisions of such other documents, free and clear of and without deduction for any and
all present or future taxes, levies, imposts, deductions, charges, or withholdings and all
liabilities with respect thereto, excluding, in the case of each Lender and the
Administrative Agent, net income taxes and franchise taxes imposed on it as a result of a present
or former connection between the jurisdiction of the government or taxing authority imposing such
tax and the Administrative Agent or such Lender other than a connection arising solely from the
Administrative Agent or such Lender having executed, delivered or performed its obligations or
received a payment under, or enforced, this Agreement or any Note or CAF Note, if any (all such non
excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of
payments hereunder or under the Notes or CAF Notes (if any) being hereinafter referred to as
“Taxes”). If the Borrower shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note or CAF Note or any other documents to be delivered
hereunder to any Lender or the Administrative Agent, (i) the sum payable shall be increased as may
be necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.17) such Lender or the Administrative Agent (as the
case may be) receives an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable law;
provided, however, that the Borrower shall not be required to increase any such
sums payable to any Lender with respect to any Taxes (i) that are attributable to such Lender’s
failure to comply with the requirements of Section 2.17(e) or (ii) that are United States
withholding taxes imposed on sums payable to such Lender at the time such Lender becomes a party to
this Agreement, except to the extent that any such Lender’s assignor (if any) was entitled, at the
time of assignment, to receive additional amounts from the Borrower with respect to such Taxes
pursuant to this Section 2.17. Whenever any Taxes or Other Taxes (as defined in Section 2.17(b))
are payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the
Administrative Agent for the account of the relevant Lender or Administrative Agent, as the case
may be, either (A) official tax receipts or notarized copies of such receipts to such Lender within
thirty (30) days after payment of any applicable tax or (B) a certificate executed by a Responsible
Officer of the Borrower confirming that such Taxes or Other Taxes have been paid, together with
evidence of such payment.




          (b) In addition, the Borrower shall pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from any payment made
hereunder or under the Notes or CAF Notes (if any) or any other documents to be delivered hereunder
or from the execution, delivery or



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registration of, performing under, or otherwise with respect to, this Agreement or the Notes
or CAF Notes (if any) or any other documents to be delivered hereunder (hereinafter referred to as
“Other Taxes”).




          (c) The Borrower shall indemnify each Lender and the Administrative Agent for and hold it
harmless against the full amount of Taxes or Other Taxes (including, without limitation, taxes of
any kind imposed or asserted by any jurisdiction on amounts payable under this Section 2.17)
imposed on or paid by such Lender or the Administrative Agent (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or with respect thereto,
including, without limitation or duplication, any incremental taxes, interest or penalties that may
become payable by the Administrative Agent or any Lender as a result of any failure by the Borrower
to pay any Taxes or Other Taxes when due to the appropriate taxing authority or to remit to any
Lender the receipts or other evidence of payment of Taxes or Other Taxes.




          (d) Within 30 days after the date of any payment of Taxes, the Borrower shall furnish to the
Administrative Agent, at its address referred to in Section 8.02, the original or a certified copy
of a receipt evidencing such payment to the extent such a receipt is issued therefor, or other
written proof of payment thereof that is reasonably satisfactory to the Administrative Agent. In
the case of any payment hereunder or under the Notes or CAF Notes (if any) or any other documents
to be delivered hereunder by or on behalf of the Borrower through an account or branch outside the
United States or by or on behalf of the Borrower by a payor that is not a United States person, if
the Borrower determines that no Taxes are payable in respect thereof, the Borrower shall furnish,
or shall cause such payor to furnish, to the Administrative Agent, at such address, an opinion of
counsel acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For
purposes of this subsection (d) and subsection (e), the terms “United States” and
“United States person” shall have the meanings specified in Section 7701 of the Internal
Revenue Code.




          (e) Each Lender registered in the Register that is not a United States person as defined in
Section 7701(a)(30) of the Internal Revenue Code agrees that it will deliver to the Borrower and
the Administrative Agent on the Effective Date, or on the date which it becomes a party to this
Agreement, two duly completed copies of United States Internal Revenue Service Form W-8BEN, W-8ECI,
W-8EXP or W-8IMY (or other appropriate corresponding form) or any successor applicable form, as the
case may be. Each such Lender also agrees to deliver to the Borrower and the Administrative Agent
two further copies of the said Form W-8BEN, W-8ECI, W-8EXP or W-8IMY or successor applicable forms
or other manner of certification, as the case may be, on or before the date that any such form
expires or becomes obsolete or after the occurrence of any event requiring a change in the most
recent form previously delivered by it to the Borrower, and such extensions or renewals thereof as
may reasonably be requested by the Borrower or the Administrative Agent, unless in any such case an
event (including, without limitation, any change in treaty, law or regulation) has occurred prior
to the date on which any such delivery would otherwise be required that renders all such forms
inapplicable or that would prevent such Lender from duly completing and delivering any such form
with respect to it and such Lender so advises the Borrower and the Administrative Agent. Each such
Lender shall certify in the case of a Form W-8BEN, W-8ECI, W-8EXP or W-8IMY that is entitled to
receive payments under this Agreement without deduction or withholding of any United States federal
income taxes. In the event that any such Lender fails to deliver any forms required under this
Section 2.17(e), the Borrower’s obligation to pay additional amounts shall be reduced to the amount
that it would have been obligated to pay had such forms been provided.




          (f) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form, certificate or other document described in Section 2.17(e) (other
than if such failure is due to a change in law, or in the interpretation or application
thereof, occurring subsequent to the date on which a form, certificate or other document originally
was required to be provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to indemnification under
Section 2.17(a) or (c) with respect to Taxes imposed by the United States by reason of such
failure; provided, however, that should a Lender become subject to Taxes because of
its failure to deliver a form, certificate or other document required hereunder, the Borrower shall
take such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes.




          (g) Any Lender claiming any additional amounts payable pursuant to this Section 2.17 agrees to
use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to change the jurisdiction of its Applicable Lending Office if the making of such a change would
avoid the need for, or reduce the



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amount of, any such additional amounts that may thereafter accrue and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.




          (h) If any Taxes or Other Taxes are not correctly or legally asserted and the Administrative
Agent or any Lender determines, in its sole discretion, that it has received a refund of those
Taxes or Other Taxes as to which it has been indemnified by the Borrower, the Administrative Agent
or such Lender shall within 20 days after such refund pay to the Borrower the amount of such refund
to the extent that the Borrower indemnified the Administrative Agent or such Lender for such Taxes
or Other Taxes pursuant to this Section 2.17, net of any out-of-pocket costs of the Administrative
Agent or such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such
Lender is required to repay such refund to such Governmental Authority. This paragraph shall not
be construed to require the Administrative Agent or any Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to the Borrower or any
other Person.




          SECTION 2.18 Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set off, or otherwise) on
account of the Revolving Advances or participations in Swingline Loans owing to it (other than
pursuant to Sections 2.14, 2.15, 2.20 or 8.04(c)) in excess of its ratable share of payments on
account of the Revolving Advances obtained by all the Lenders, such Lender shall forthwith purchase
from the other Lenders such participations in the Revolving Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender’s ratable share (according to the proportion of (i)
the amount of such Lender’s required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.18 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of set off) with respect
to such participation as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation.




          SECTION 2.19 Use of Proceeds. The proceeds of the Advances shall be available (and
the Borrower agrees that it shall use such proceeds) solely for general corporate purposes,
including capital expenditures and to repay commercial paper and commercial paper backstop
facilities.




          SECTION 2.20 Extension Option. The Borrower may request that the Commitments be
extended for additional one year periods by providing not less than 30 days’ written notice (the
date of such notice, a “Notice Date”) to the Administrative Agent prior to any anniversary
of the Closing Date. If a Lender agrees, in its individual and sole discretion, to extend its
Commitment (such Lender, an “Extending Lender”), it will notify the Administrative Agent,
in writing, of its decision to do so no later than 20 days after the applicable Notice Date. The
Administrative Agent will notify the Borrower, in writing, of the Lenders’ decisions no later than
25 days after such Notice Date. The Extending Lenders’ Commitments will be extended for an
additional year from the Termination Date (the “Extended Termination Date”) or the Extended
Termination Date (the “Second Extended Termination Date”); provided that (i) more
than 50% of the Commitments is extended or otherwise committed to by Extending Lenders and any new
Lenders and (ii) on the date of any request by the Borrower to extend the Commitments, the
applicable conditions set forth in Section 3.02 shall be satisfied. No Lender shall be required to
consent to any such extension request and any Lender that declines or does not respond to the
Borrower’s request for commitment renewal (a “Declining Lender”) will have its Commitment
terminated on the then existing Termination Date (without regard to any renewals by other Lenders).
The Borrower will have the right to accept commitments from Eligible Assignees in an amount equal
to the amount of the Commitments of any Declining Lenders; provided that the Extending
Lenders will have the right to increase their Commitments up to the amount of the Declining
Lenders’ Commitments before the Borrower will be permitted to substitute any Eligible Assignees for
the Declining Lenders. The Borrower may only extend the Termination Date twice during the term of
this Agreement pursuant to this Section 2.20.



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          SECTION 2.21 Increase in the Aggregate Revolving Commitments. (a) The Borrower may,
at any time but in any event not more than twice in any calendar year prior to the Termination
Date, whether or not the Revolving Commitments have been reduced pursuant to Section 2.08, by
notice to the Administrative Agent, request that the aggregate amount of the Commitments be
increased by an amount of $10,000,000 or an integral multiple of $5,000,000 in excess thereof (a
“Commitment Increase”) to be effective as of a date that is at least 90 days prior to the
scheduled Termination Date then in effect (the “Increase Date”) as specified in the related
notice to the Administrative Agent; provided, however, that (i) in no event shall
the aggregate amount of the Commitments at any time exceed $1,425,000,000 and (ii) on the date of
any request by the Borrower for a Commitment Increase and on the related Increase Date, the
applicable conditions set forth in Section 3.02 shall be satisfied.




          (b) The Administrative Agent shall promptly notify the Lenders of a request by the Borrower
for a Commitment Increase, which notice shall include (i) the proposed amount of such requested
Commitment Increase, (ii) the proposed Increase Date and (iii) the date by which the Lenders
wishing to participate in the Commitment Increase must commit to an increase in the amount of their
respective Revolving Commitments (the “Commitment Date”). Lender Bank that is willing, in
its sole discretion, to participate in such requested Commitment Increase (each an “Increasing
Lender”) shall give written notice to the Administrative Agent and the Borrower on or prior to
the Commitment Date of the amount by which it is willing to increase its Revolving Commitment. If
the Banks notify the Administrative Agent and the Borrower that they are willing to increase the
amount of their respective Revolving Commitments by an aggregate amount that exceeds the amount of
the requested Commitment Increase, the requested Commitment Increase shall be allocated among the
Lenders willing to participate therein in such amounts as are agreed between the Borrower and the
Administrative Agent.




          (c) Promptly following each Commitment Date, the Administrative Agent shall notify the
Borrower as to the amount, if any, by which the Lenders are willing to participate in the requested
Commitment Increase. If the aggregate amount by which the Lenders are willing to participate in
any requested Commitment Increase on any such Commitment Date is less than the requested Commitment
Increase, then the Borrower may request Lenders to increase their participation and extend offers
to one or more Eligible Assignees to participate in any portion of the requested Commitment
Increase that has not been committed to by the Lenders as of the applicable Commitment Date;
provided, however, that the Revolving Commitment of each such Eligible Assignee
shall be in an amount not less than $10,000,000.




          (d) On each Increase Date, each Eligible Assignee that accepts an offer to participate in a
requested Commitment Increase in accordance with Section 2.21(b) (each such Eligible Assignee, an
“Assuming Bank”) shall become a Lender party to this Agreement as of such Increase Date and
the Revolving Commitment of each Increasing Lender for such requested Commitment Increase shall be
so increased by such amount (or by the amount allocated to such Lender pursuant to the last
sentence of Section 2.21(b)) as of such Increase Date; provided, however, that the
Administrative Agent shall have received on or before such Increase Date the following, each dated
such date:





     (i) (A) certified copies of resolutions of the Board of Directors (or other
governing body) of the Borrower or the Executive Committee of such Board (or other
governing body) approving the Commitment Increase and the corresponding
modifications to this Agreement and (B) opinions of counsel for the Borrower (which
may be in-house counsel), in form and substance reasonably acceptable to the
Administrative Agent, covering the matters covered by the opinions of counsel
delivered pursuant to Section 3.01 (d)(iv) and Section 3.01(d)(v) hereof;




     (ii) an assumption agreement from each Assuming Bank, if any, substantially in
the form of Exhibit I hereto (each an “Assumption Agreement”), duly
executed by such Eligible Assignee, the Administrative Agent and the Borrower; and




     (iii) confirmation from each Increasing Lender of the increase in the amount of
its Revolving Commitment in a writing satisfactory to the Borrower and the
Administrative Agent.


On each Increase Date, upon fulfillment of the conditions set forth in the immediately preceding
sentence of this Section 2.21(d), the Administrative Agent shall notify the Lenders (including,
without limitation, each Assuming Bank) and the Borrower, on or before 1:00 P.M. (New York City
time), by telecopier, of the occurrence of the



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Commitment Increase to be effected on such Increase Date and shall record in the Register the
relevant information with respect to each Increasing Lender and each Assuming Bank on such date.




          (e) The Administrative Agent shall promptly notify the Borrower and the Lenders of any
increase in the amount of the aggregate Revolving Commitments pursuant to this Section and of the
respective adjusted Revolving Commitment and Commitment Percentage of each Lender after giving
effect thereto. The Borrower acknowledges that, in order to maintain the Revolving Advances in
accordance with the Commitment Percentage of each Lender, a non-pro-rata increase in the aggregate
Revolving Commitment may require prepayment or funding of all or portions of certain Revolving
Advances on the date of such increase (and any such prepayment or funding shall be subject to the
other provisions of this Agreement). Effective upon such increase, the amount of the
participations held by each Lender in each Letter of Credit then outstanding shall be adjusted such
that, after giving effect to such adjustments, each Lender shall hold participations in each such
Letter of Credit in accordance with the Commitment Percentage of such Lender after giving effect to
such increase.




          SECTION 2.22 Evidence of Debt. (a) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Advance owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time hereunder. The Borrower
agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the
Administrative Agent) to the effect that a promissory note or other evidence of indebtedness is
required or appropriate in order for such Lender to evidence (whether for purposes of pledge,
enforcement or otherwise) the Advances owing to, or to be made by, such Lender, the Borrower shall
promptly execute and deliver to such Lender, with a copy to the Administrative Agent, a Note or a
CAF Note, as the case may be, in substantially the form of Exhibit A or Exhibit D
hereto, respectively and as the case may be, payable to the order of such Lender in a principal
amount equal to the amount of the Revolving Advance or the CAF Advance, as the case may be, of such
Lender. All references to Notes or CAF Notes in the Loan Documents shall mean Notes or CAF Notes,
respectively and if any, to the extent issued hereunder.




          (b) The Register maintained by the Administrative Agent pursuant to Section 8.07(c) shall
include a control account, and a subsidiary account for each Lender, in which accounts (taken
together) shall be recorded (i) the date and amount of each Borrowing made hereunder, the Type of
Advances comprising such Borrowing and, if appropriate, the Interest Period applicable thereto,
(ii) the terms of each Assignment and Acceptance delivered to and accepted by it, (iii) the amount
of any principal or interest due and payable or to become due and payable from the Borrower to each
Lender hereunder, and (iv) the amount of any sum received by the Administrative Agent from the
Borrower hereunder and each Lender’s share thereof.




          (c) Entries made in good faith by the Administrative Agent in the Register pursuant to
subsection (b) above, and by each Lender in its account or accounts pursuant to subsection (a)
above, shall be prima facie evidence of the amount of principal and interest due and payable or to
become due and payable from the Borrower to, in the case of the Register, each Lender and, in the
case of such account or accounts, such Lender, under this Agreement, absent manifest error;
provided, however, that the failure of the Administrative Agent or such Lender
Party to make an entry, or any finding that an entry is incorrect, in the Register or such account
or accounts shall not limit or otherwise affect the obligations of the Borrower under this
Agreement.




ARTICLE III




CONDITIONS TO EFFECTIVENESS AND LENDING




          SECTION 3.01 Conditions Precedent to Effectiveness of Sections 2.01 and 2.05.
Sections 2.01 and 2.05 of this Agreement shall become effective on and as of the first date prior
to July 31, 2007 (the “Effective Date”) on which the following conditions precedent have
been satisfied:





     (a) The Administrative Agent shall have received, for the benefit of the lenders under
the Existing Credit Facility, all accrued interest and fees, including any facility fees,
utilization fees and letter of credit fees, due and payable under the Existing Credit
Facility as of the Closing Date.



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     (b) The effectiveness, substantially concurrently with the effective of this Agreement,
of (i) the $1,200,000,000 credit facility to be arranged by the Global Coordinators for
CenterPoint Energy, Inc. and (ii) the $300,000,000 credit facility to be arranged by the
Global Coordinators for CenterPoint Energy Houston Electric, LLC.




     (c) The Borrower shall have paid all accrued fees and expenses of the Lenders and the
Administrative Agent (including the accrued fees and expenses of counsel to the
Administrative Agent) and taxes, if any, due and payable hereunder and under the Fee Letter.




     (d) The Administrative Agent shall have received on or before the Effective Date the
following, each dated such day, in form and substance satisfactory to the Administrative
Agent and (except for the Notes):




     (i) This Agreement, duly executed by the Borrower and each other party hereto.




     (ii) The Notes, duly executed by the Borrower and made payable to the order of
each Lender who has requested a Note, pursuant to Section 2.22(a).




     (iii) Certified copies of the (A) resolutions of the board of directors of the
Borrower approving this Agreement and the Notes (if any), and of all documents
evidencing other necessary corporate action and governmental approvals, if any, with
respect to this Agreement and the Notes (if any) and (B) certificate of
incorporation and bylaws of the Borrower (such certificate, duly executed by an
authorized officer of the Borrower, shall state that such resolutions, certificate
of incorporation and bylaws are in full force and effect as of the Effective Date).




     (iv) A certificate of the Secretary or an Assistant Secretary of the Borrower
certifying the names and true signatures of the officers of the Borrower authorized
to sign this Agreement and the Notes (if any) and the other documents to be
delivered hereunder.




     (v) A favorable opinion of Baker Botts LLP, counsel for the Borrower, in form
and substance satisfactory to the Administrative Agent.




     (vi) A favorable opinion of the in-house counsel of the Borrower, in form and
substance satisfactory to the Administrative Agent.




     (e) The Administrative Agent shall have received from the Borrower such other
approvals, opinions or documents as any Lender through the Administrative Agent may
reasonably request.



          SECTION 3.02 Conditions Precedent to Each Revolving Borrowing, Issuance and Commitment
Increase. The obligation of each Lender to make a Revolving Advance on the occasion of each
Revolving Borrowing and the Obligation of each Issuing Bank to issue or amend a Letter of Credit
(including the initial issuance) or renewal of a Letter of Credit, other than in the case of an
automatic renewal, and each Commitment Increase and each extension of Commitments pursuant to
Section 2.20 and each Swingline Loan pursuant to Section 2.03 hereof shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the date of such Revolving
Borrowing, issuance or the Commitment Increase (a) the following statements shall be true (and each
of the giving of the Applicable Notice of Borrowing, Notice of Letter of Credit Issuance or request
for Commitment Increase and the acceptance by the Borrower of the proceeds of such Revolving
Borrowing or of such Letter of Credit or the renewal of such Letter of Credit, other than in the
case of an automatic renewal, shall constitute a representation and warranty by the Borrower that
on the date of such Revolving Borrowing, Issuance, renewal or Commitment Increase such statements
are true):





     (i) the representations and warranties contained in Section 4.01 (except after the
Effective Date, the last sentence of subsection (e) thereof, subsection (f)(i) thereof,
subsection (i) (only with respect to environmental issues) and other representations that by
their terms are limited to a specific date) are correct in all material respects on and as
of such date, before and after giving effect to such Revolving


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Borrowing, issuance or renewal or Commitment Increase and to the application of the
proceeds therefrom, as through made on and as of such date; and




     (ii) no event has occurred and is continuing, or would result from such Revolving
Borrowing, issuance or renewal of any Letter of Credit or such Commitment Increase or from
the application of the proceeds therefrom, that constitutes a Default;


and (b) the Administrative Agent shall have received such other approvals, opinions or documents as
any Lender through the Administrative Agent may reasonably request.




          SECTION 3.03 Conditions Precedent to Each CAF Borrowing. The obligation of each
Lender that is to make a CAF Advance on the occasion of a CAF Borrowing to make such CAF Advance as
part of such CAF Borrowing is subject to the conditions precedent that (i) the Administrative Agent
shall have received the written confirmatory Competitive Bid Request pursuant to Section 2.06(a)
with respect thereto, (ii) the Administrative Agent shall have received a Competitive Bid
Confirmation from the Borrower pursuant to Section 2.06(d), (iii) on or before the date of such CAF
Borrowing, but prior to such CAF Advance, the Administrative Agent shall have received a CAF Note
in accordance with Section 2.22(a) payable to the order of such Lender for each of the one or more
CAF Advances to be made by such Lender as part of such CAF Borrowing, in a principal amount equal
to the principal amount of the CAF Advance to be evidenced thereby and otherwise on such terms as
were agreed to for such CAF Advance in accordance with Section 2.06, and (iv) on the date of such
CAF Borrowing the following statements shall be true (and each of the giving of the applicable
Competitive Bid Request and the acceptance by the Borrower of the proceeds of such CAF Borrowing
shall constitute a representation and warranty by the Borrower that on the date of such CAF
Borrowing such statements are true):





     (a) the representations and warranties contained in Section 4.01 (except after the
Effective Date, the last sentence of subsection (e) thereof, subsection (f)(i) thereof,
subsection (i) (only with respect to environmental issues) and other representations and
warranties that by their terms are limited to a specific date) are correct in all material
respects on and as of the date of such CAF Borrowing, before and after giving effect to such
CAF Borrowing and to the application of the proceeds therefrom, as though made on and as of
such date,




     (b) no event has occurred and is continuing, or would result from such CAF Borrowing or
from the application of the proceeds therefrom, that constitutes a Default, and




     (c) no event has occurred and no circumstance exists as a result of which the
information concerning the Borrower that has been provided to the Administrative Agent and
each Lender by the Borrower in connection herewith would include an untrue statement of a
material fact or omit to state any material fact or any fact necessary to make the
statements contained therein, in the light of the circumstances under which they were made,
not misleading.



          SECTION 3.04 Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an
officer of the Administrative Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the Borrower, by notice to the
Lenders, designates as the proposed Effective Date, specifying its objection thereto. The
Administrative Agent shall promptly notify the Lenders of the occurrence of the Effective Date.




ARTICLE IV




REPRESENTATIONS AND WARRANTIES




          SECTION 4.01 Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:



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     (a) The Borrower is duly organized, validly existing and in good standing under the
laws of its jurisdiction of formation.




     (b) The execution, delivery and performance by the Borrower of this Agreement and the
Notes or CAF Notes (if any), and the consummation of the transactions contemplated hereby,
are within the Borrower’s corporate powers, have been duly authorized by all necessary
corporate action, and do not (i) contravene the Borrower’s certificate of incorporation or
by laws or any law or any contractual restriction binding on or affecting the Borrower, or
(ii) constitute a default under any existing indenture, loan agreement or other material
agreement to which the Borrower or any Subsidiary of the Borrower is a party.




     (c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is required for the
due execution, delivery and performance by the Borrower of this Agreement or the Notes or
CAF Notes (if any), and no law or regulation is applicable that restrains, prevents or
imposes materially adverse conditions upon the transactions contemplated hereby.




     (d) This Agreement has been, and each of the Notes or CAF Notes (if any) when delivered
hereunder will have been, duly executed and delivered by the Borrower. This Agreement is,
and each of the Notes or CAF Notes (if any) when delivered hereunder will be, the legal,
valid and binding obligations of the Borrower enforceable against the Borrower in accordance
with their respective terms.




     (e) The Consolidated balance sheet of the Borrower and its Subsidiaries as of December
31, 2006, and the related Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of Deloitte &
Touche LLP, independent public accountants, copies of which have been furnished to each
Lender, fairly present, in all material respects, the Consolidated financial condition of
the Borrower and its Subsidiaries as at such date and the Consolidated results of the
operations of the Borrower and its Subsidiaries for the period ended on such date, all in
accordance with generally accepted accounting principles consistently applied. Since
December 31, 2006, there has been no Material Adverse Change.




     (f) There is no pending or threatened action, suit, investigation, litigation or
proceeding, including, without limitation, any Environmental Action, affecting the Borrower
or any of its Subsidiaries before any court, governmental agency or arbitrator that (i)
could, as of the Effective Date, be reasonably likely to have a Material Adverse Effect or
(ii) purports to affect the legality, validity or enforceability of this Agreement or any
other Loan Document or the consummation of the transactions contemplated hereby.




     (g) The Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no proceeds of any Advance will be used to purchase
or carry any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.




     (h) Neither the Borrower nor any Subsidiary of the Borrower is an “investment company”
as defined in, or otherwise subject to regulation under, the Investment Company Act of 1940,
as amended.




     (i) The Borrower is and each of its Subsidiaries are in substantial compliance with all
applicable laws, ordinances, rules, regulations, and requirements of governmental
authorities (including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except for any non-compliance that could not reasonably be expected
to have a Material Adverse Effect.




     (j) All written information heretofore furnished by the Borrower to the Administrative
Agent or any Lender for purposes of or in connection with this Agreement or any transaction
contemplated hereby or thereby is, and all such information hereafter furnished by the
Borrower to the Administrative Agent or any Lender will be, true and accurate in all
material respects on the date as of which such information is stated in the light of the
circumstances under which such information was provided (as modified or supplemented by
other information so furnished, when taken together as a whole as of the date so stated);
provided, that, with respect to projected financial information, the Borrower
represents only that such


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information was prepared in good faith based on assumptions believed to be reasonable
at the time, it being recognized by the Lenders that such projections as to future events
are not to be viewed as facts and that actual results during the period or periods covered
by any such projections may differ from the projected results. The Borrower has disclosed
to the Administrative Agent any and all facts specific to the Borrower and its Subsidiaries
and known as of the date hereof to a Responsible Officer of the Borrower that could
reasonably be expected to result in a Material Adverse Effect or which could reasonably be
expected to materially and adversely affect or may affect (to the extent the Borrower can
now reasonably foresee), the business, operations or financial condition of the Borrower and
its Subsidiaries, taken as a whole.



ARTICLE V




COVENANTS OF THE BORROWER




          SECTION 5.01 Affirmative Covenants. So long as any Advance shall remain unpaid or
any Lender shall have any Commitment hereunder or any Letter of Credit is outstanding under this
Agreement, the Borrower will:





     (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to
comply, in all material respects, with all applicable laws, rules, regulations and orders,
such compliance to include, without limitation, compliance with ERISA and Environmental
Laws, except to the extent the failure to so comply could not reasonably be expected to have
a Material Adverse Effect.




     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Significant Subsidiaries to pay and discharge, before the same shall become delinquent, (i)
all taxes, assessments and governmental charges or levies imposed upon it or upon its
property and (ii) all lawful claims that, if unpaid, might by law become a Lien upon its
property or unless the failure to pay could not reasonably be expected to result in a
Material Adverse Effect; provided, however, that neither the Borrower nor
any of its Significant Subsidiaries shall be required to pay or discharge any such tax,
assessment, charge or claim that is being contested in good faith and by proper proceedings
and as to which appropriate reserves are being maintained or unless the failure to pay could
not reasonably be expected to result in a Material Adverse Effect.




     (c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations in
such amounts and covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties; provided, however, that the
Borrower and its Subsidiaries may self-insure to the same extent as other companies engaged
in similar businesses and owning similar properties and to the extent consistent with
prudent business practice.




     (d) Preservation of Existence, Etc. Preserve and maintain, and cause each of
its Subsidiaries to preserve and maintain, its existence, rights (charter and statutory) and
franchises, except (other than in the case of the Borrower) to the extent such failure could
not reasonably be expected to have a Material Adverse Effect; provided,
however, that the Borrower and its Subsidiaries may consummate any merger or
consolidation permitted under Section 5.02(b) and provided further that
neither the Borrower nor any of its Subsidiaries shall be required to preserve any right or
franchise if the board of directors (or similar governing body) of the Borrower or such
Subsidiary shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Borrower or such Subsidiary, as the case may be, and that the
loss thereof is not disadvantageous in any material respect to the Borrower, such Subsidiary
or the Lenders.




     (e) Visitation Rights. The Borrower will, and will cause each of its
Subsidiaries to, at any reasonable time and from time to time, permit up to six
representatives of the Lenders designated by the Required Lenders, or representatives of the
Administrative Agent, on not less than five (5) Business Days’ notice, to examine and make
copies of and abstracts from the records and books of account of, and visit the properties
of, the Borrower and each Significant Subsidiary and to discuss the general business affairs
of the Borrower and each of its Subsidiaries with their respective officers and independent
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accountants; subject, however, in all cases to the imposition of such conditions as the
Borrower and each of its Significant Subsidiaries shall deem necessary based on reasonable
considerations of safety and security; provided, however, that neither the
Borrower nor any of its Subsidiaries shall be required to disclose to the Administrative
Agent, any Lender or any agents or representatives thereof any information which is the
subject of attorney-client privilege or attorney work-product privilege properly asserted by
the applicable Person to prevent the loss of such privilege in connection with such
information or which is prevented from disclosure pursuant to a confidentiality agreement
with third parties. Notwithstanding the foregoing, none of the conditions precedent to the
exercise of the right of access described in the preceding sentence that relate to notice
requirements or limitations on the Persons permitted to exercise such right shall apply at
any time when a Default or an Event of Default shall have occurred.




     (f) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper
books of record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Borrower and each such Subsidiary
in accordance with GAAP.




     (g) Maintenance of Properties, Etc. Maintain and preserve, and cause each of
its Subsidiaries to maintain and preserve, all of its material properties that are used or
useful in the conduct of its business in good working order and condition, ordinary wear and
tear excepted, to the extent the failure to so maintain would not reasonably be expected to
have a Material Adverse Effect.




     (h) Maintenance of Existing Business. Maintain and preserve its fundamental
business of being a local gas distribution company and an owner and operator of natural gas
pipeline systems.




     (i) Use of Proceeds. Use the proceeds of each Advance only for general
corporate purposes, including to repay the Existing Credit Facility and for capital
expenditures, of the Borrower and its Subsidiaries, and the repayment of commercial paper.




     (j) Reporting Requirements. Furnish to the Lenders:




     (i) as soon as practicable and in any event within 60 days after the end of
each of the first three quarters of each fiscal year of the Borrower, unaudited
Consolidated balance sheets of the Borrower and its Subsidiaries, prepared in
conformity with GAAP consistently applied, as of the end of such quarter and
Consolidated statements of income and cash flows of the Borrower and its
Subsidiaries (including Unrestricted Subsidiaries), prepared in conformity with GAAP
consistently applied, for the period commencing at the end of the previous fiscal
year and ending with the end of such quarter, duly certified (subject to year end
audit adjustments and the inclusion of abbreviated footnotes) by a Responsible
Officer of the Borrower as having been prepared in accordance with generally
accepted accounting principles and certificates of a Responsible Officer of the
Borrower as to compliance with the terms of this Agreement and setting forth in
reasonable detail the calculations necessary to demonstrate compliance with Section
5.03 (which requirement may be satisfied by delivering the Borrower’s quarterly
report on Form 10-Q with respect to such fiscal quarter as filed with the Securities
and Exchange Commission);




     (ii) as soon as practicable and in any event within 120 days after the end of
each fiscal year of the Borrower commencing 2007, a copy of the annual audit report
for such year for the Borrower and its Subsidiaries (including Unrestricted
Subsidiaries), containing Consolidated balance sheets of the Borrower and its
Subsidiaries as of the end of such fiscal year and Consolidated statements of income
and cash flows of the Borrower and its Subsidiaries (including Unrestricted
Subsidiaries) for such fiscal year accompanied by an opinion of an independent
public accountant, in each case prepared in conformity with GAAP consistently
applied (which requirement may be satisfied by delivering the Borrower’s annual
report on Form 10-K with respect to such fiscal year as filed with the Securities
and Exchange Commission) together with a certificate of a Responsible Officer of the
Borrower identifying Significant Subsidiaries determined with respect to such
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     (iii) as soon as practicable and in any event within seven Business Days after
a Responsible Officer of the Borrower becomes aware of the occurrence of each
Default continuing on the date of such statement, a statement of a Responsible
Officer of the Borrower setting forth details of such Default and the action that
the Borrower has taken and proposes to take with respect thereto;




     (iv) within ten (10) days of the filing thereof, copies of all periodic reports
(other than (x) reports on Form 11-K or any successor form, (y) current reports on
Form 8-K that contain no information other than exhibits filed therewith and (z)
reports on Form 10-Q or 10-K or any successor forms) under the Exchange Act (in each
case other than exhibits thereto and documents incorporated by reference therein))
filed by the Borrower with the Securities and Exchange Commission;




     (v) promptly after the commencement thereof, notice of all actions and
proceedings before any court, governmental agency or arbitrator affecting the
Borrower or any of its Subsidiaries of the type described in Section 4.01(f); and




     (vi) such other information respecting the Borrower or any of its Subsidiaries
as any Lender through the Administrative Agent may from time to time reasonably
request.




Information required to be delivered pursuant to the foregoing Sections 5.01(j)(i), (ii) and
(iv) shall be deemed to have been delivered on the date on which the Borrower provides
notice (including notice by e-mail) to the Administrative Agent (which notice the
Administrative Agent will convey promptly to the Lenders) that such information has been
posted on the Securities and Exchange Commission website on the internet at
sec.gov/edgar/searches.htm or at another website identified in such notice and accessible by
the Lenders without charge; provided that such notice may be included in a
certificate delivered pursuant to Section 5.01(j)(i).



          SECTION 5.02 Negative Covenants. So long as any Advance shall remain unpaid or any
Lender shall have any Commitment hereunder or any Letter of Credit is outstanding under this
Agreement, the Borrower will not:





     (a) Restrictions on Liens. Pledge, mortgage or hypothecate, or permit to
exist, and will not permit any Subsidiary (other than a Project Finance Subsidiary or an
Unrestricted Subsidiary) to pledge, mortgage or hypothecate, or permit to exist, except in
favor of Borrower or any Subsidiary (other than a Project Finance Subsidiary or an
Unrestricted Subsidiary), any Lien upon, any Principal Property or Equity Interest in any
Significant Subsidiary (other than a Project Finance Subsidiary or an Unrestricted
Subsidiary) owning any Principal Property, at any time owned by Borrower or a Subsidiary
(other than a Project Finance Subsidiary or an Unrestricted Subsidiary), to secure any
Indebtedness; provided, however, that this restriction shall not apply to or
prevent the creation or existence of:




     (i) Permitted Liens;




     (ii) any Lien in existence on the date hereof securing Indebtedness of the
Borrower or any of its Subsidiaries; provided that no such Lien described in
this clause (ii) encumbers any additional Property after the date hereof and that
the principal amount of Indebtedness secured thereby is not increased;




     (iii) Liens required to be granted pursuant to “equal and ratable” clauses
existing on the date hereof under Contractual Obligations of the Borrower and its
Restricted Subsidiaries (and extensions and renewals thereof);




     (iv) Liens arising in connection with the securitization of accounts receivable
of the Borrower and its Subsidiaries, in the case of the Borrower and its
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affecting only the accounts receivable of the Borrower and its Subsidiaries and
assets customarily related thereto;




     (v) Liens on fixed or capital assets and related inventory and intangible
assets acquired, constructed, improved, altered or repaired by the Borrower or any
Restricted Subsidiary; provided that (A) such Liens secure Indebtedness
otherwise permitted by this Agreement, (B) such Liens and the Indebtedness secured
thereby are incurred prior to or within 365 days after such acquisition or the later
of the completion of such construction, improvement, alteration or repair or the
date of commercial operation of the assets constructed, improved, altered or
repaired, (C) the Indebtedness secured thereby does not exceed the cost of
acquiring, constructing, improving, altering or repairing such fixed or capital
assets, as the case may be, and (D) such Lien shall not apply to any other property
or assets of the Borrower or of its Restricted Subsidiaries (other than repairs,
renewals, replacements, additions, accessions, improvements and betterments
thereto);




     (vi) Liens on Property and repairs, renewals, replacements, additions,
accessions, improvements and betterments thereto existing at the time such Property
is acquired by the Borrower or any Restricted Subsidiary and not created in
contemplation of such acquisition (or on repairs, renewals, replacements, additions,
accessions and betterments thereto), and Liens on the Property of any Person at the
time such Person becomes a Restricted Subsidiary of the Borrower and not created in
contemplation of such Person becoming a Restricted Subsidiary of the Borrower (or on
repairs, renewals, replacements, additions, accessions and betterments thereto);




     (vii) rights reserved to or vested in any Governmental Authority by the terms
of any right, power, franchise, grant, license or permit, or by any Requirements of
Law, to terminate such right, power, franchise, grant, license or permit or to
purchase, condemn, expropriate or recapture or to designate a purchaser of any of
the Property of the Borrower or any of its Restricted Subsidiaries;




     (viii) rights reserved to or vested in (or exercised by) any Governmental
Authority to control, regulate or use any Property of a Person or its activities,
including zoning, planning and environmental laws and ordinances and municipal
regulations;




     (ix) Liens on Property of the Borrower or any of its Restricted Subsidiaries
securing non-recourse Indebtedness of the Borrower or any such Restricted
Subsidiary;




     (x) any extension, renewal or refunding of any Lien permitted by clauses (i)
through (ix) above on the same Property previously subject thereto; provided
that no extension, renewal or refunding of any such Lien shall increase the
principal amount of any Indebtedness secured thereby immediately prior to such
extension, renewal or refunding, unless such Indebtedness is permitted under Section
5.03;




     (xi) Liens on cash collateral to secure obligations of the Borrower and its
Restricted Subsidiaries in respect of cash management arrangements with any Lender
or Affiliate thereof; and




     (xii) Liens not otherwise permitted by this Section 5.02(a) securing
Indebtedness of the Borrower and its Restricted Subsidiaries so long as the
aggregate outstanding principal amount of the obligations secured thereby does not
at any time exceed at the time of incurrence of such obligations (including any such
incurrence resulting from any extension, renewal or refunding of such obligations),
as to the Borrower and all of its Restricted Subsidiaries, 10% of Net Tangible
Assets.




     (b) Consolidation, Mergers or Disposal of Assets. And will not permit any
Significant Subsidiary (other than a MLP Unrestricted Subsidiary) to, (i) consolidate with,
or merge into or amalgamate with or into, any other Person; (ii) liquidate, wind up or
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liquidation or dissolution); or (iii) convey, sell, transfer, lease or otherwise
dispose of all or substantially all of its assets to any Person; provided,
however, that nothing contained in this Section 5.02(b) shall prohibit (A) a merger
involving a Subsidiary in which the Borrower or, if the Borrower is not a party to such
merger, a Wholly-Owned Significant Subsidiary is the surviving entity; (B) the liquidation,
winding up or dissolution of a Significant Subsidiary if all of the assets of such
Significant Subsidiary are conveyed, transferred or distributed to the Borrower or a
Wholly-Owned Significant Subsidiary; (C) the conveyance, sale, transfer, lease or other
disposal of all or substantially all (or any lesser portion) of the assets of any
Significant Subsidiary to the Borrower or a Wholly-Owned Significant Subsidiary; (D)
additional conveyances, sales, transfers, leases or other disposals of assets of the
Borrower and its Subsidiaries, provided, that the aggregate net book value of all
assets of the Borrower and its Subsidiaries conveyed, sold, transferred, leased or otherwise
disposed of pursuant to this clause (D) shall not exceed $200,000,000 or shall constitute
assets that are no longer necessary for the operation of the business of the Borrower and
its Subsidiaries; or (E) any Permitted MLP Asset Transfer made in compliance with Section
5.02(f); provided that, in each case covered by this Section 5.02(b), immediately
before and after giving effect to any such merger, dissolution or liquidation, or
conveyance, sale, transfer, lease or other disposition, no Default shall have occurred and
be continuing.




     (c) [Reserved.]




     (d) Subsidiary Indebtedness. Permit any Significant Subsidiary (other than a
Project Finance Subsidiary or an Unrestricted Subsidiary) to be a party to, guarantee,
assume, create, incur, issue or otherwise be liable in any manner in connection with or
suffer to exist, any Indebtedness or preferred stock other than (i) Indebtedness for
Borrowed Money and preferred stock which does not exceed at any time outstanding an
aggregate amount for all Significant Subsidiaries of $100,000,000 (for purposes of this
clause (i), the amount of Indebtedness for Borrowed Money will be the outstanding principal
amount thereof, and the amount of any preferred stock will be the greater of the par value
thereof or the consideration received in the issuance thereof), (ii) assumed Indebtedness
for Borrowed Money and preferred stock of any Person that becomes a Subsidiary (other than a
Project Finance Subsidiary or an Unrestricted Subsidiary) after the date hereof, if such
Indebtedness for Borrowed Money or preferred stock is in existence at the time such Person
becomes a Subsidiary (other than a Project Finance Subsidiary or an Unrestricted Subsidiary)
and was not created in contemplation thereof and no other Subsidiary is liable therefor,
(iii) Indebtedness for Borrowed Money owed to and held by, and preferred stock held by, the
Borrower or any Wholly-Owned Subsidiary of the Borrower, (iv) Non-Recourse Debt and (v)
Indebtedness for Borrowed Money existing on the date hereof, any refinancing thereof in an
amount not greater than the outstanding amount thereof at the time of such refinancing and
any preferred stock existing on the date hereof.




     (e) Restrictions on Dividends, Intercompany Loans, or Investments. Permit, or
permit any Significant Subsidiary (other than a Project Finance Subsidiary or an
Unrestricted Subsidiary) to, create or otherwise cause or permit to exist or become
effective any explicit and direct restriction under any agreement evidencing or providing
for the issuance of Indebtedness for Borrowed Money (other than this Agreement) on the
ability of any Significant Subsidiary (other than a Project Finance Subsidiary or an
Unrestricted Subsidiary) to (i) pay dividends or make any other distributions on its capital
stock or pay any Indebtedness owed to the Borrower or any Subsidiary (other than a Project
Finance Subsidiary or an Unrestricted Subsidiary) of the Borrower, (ii) make any loans or
advances to or investments in the Borrower or any Subsidiary (other than a Project Finance
Subsidiary or an Unrestricted Subsidiary) of the Borrower, or (iii) transfer any of its
property or assets to the Borrower or any Subsidiary (other than a Project Finance
Subsidiary or an Unrestricted Subsidiary) of the Borrower; provided, that the
foregoing shall not prohibit financial incurrence, maintenance and similar covenants that
indirectly have the practical effect of prohibiting or restricting the ability of a
Significant Subsidiary to make such payments or provisions that require that a certain
amount of capital be maintained, or prohibit the return of capital to shareholders above
certain dollar limits; provided, further, that the foregoing shall not apply
to (i) restrictions and conditions imposed by law or by this Agreement, (ii) restrictions
and conditions existing on the date hereof, any amendment or modification thereof (other
than an amendment or modification expanding the scope of any such restriction or condition
and any restrictions or conditions) that (x) replace restrictions or conditions existing on
the date hereof and (y) are substantially similar to such existing


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restriction or condition, (iii) restrictions (including any extension of such
restrictions that does not expand the scope of any such restrictions) existing at the time
at which any such Subsidiary first becomes a Significant Subsidiary, so long as such
restriction was in existence prior to such time in accordance with the other provisions of
this Agreement and was not agreed to or incurred in contemplation of such change of status,
(iv) any restrictions with respect to a Significant Subsidiary imposed pursuant to an
agreement that has been entered into in connection with a disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary (if such disposal is
otherwise permitted under this Agreement) and (v) any restrictions in respect of preferred
or preference stock permitted to be issued by any Subsidiary under Section 5.02(d).




     (f) Affiliate Transaction. And will not permit any Subsidiary of Borrower to,
make, directly or indirectly, (i) any transfer, sale, lease or other disposition of any
Property to any Affiliate of Borrower or any Subsidiary of Borrower or any purchase or
acquisition of any Property from any such Affiliate; or (ii) any other arrangement or
transaction directly or indirectly with or for the benefit of any such Affiliate (including
without limitation, guaranties and assumptions of obligations of any such Affiliate);
provided, that (A) Borrower and any such Subsidiary may enter into any arrangement
or other transaction with any such Affiliate if the monetary or business consideration
arising therefrom would be substantially at least as advantageous to Borrower or such
Subsidiary as the monetary or business consideration which would be obtained in a comparable
arm’s length transaction with a Person not an Affiliate of Borrower or any Subsidiary of
Borrower; (B) Borrower and any Subsidiary of Borrower may become liable in connection with
guaranties of the obligations of any such Affiliate in the ordinary course of business,
provided that, the amount of any such guaranty, to the extent such guaranty relates
to Indebtedness for Borrowed Money, of the obligations of any such Affiliate shall be
included in the determination of Total Debt for purposes of Section 5.03(a) hereof; (C)
Borrower and its Subsidiaries may make purchases of receivables of any kind from the
Borrower and the Subsidiaries of Borrower on terms that any of them deem acceptable; (D)
intercompany borrowings between Borrower and any Subsidiary of Borrower and between any
Subsidiaries of the Borrower and other such Subsidiaries of the Borrower may be on terms
that they deem acceptable or under the Parent’s money pool; (E) Borrower may enter into any
arrangement or other transaction with any Wholly-Owned Subsidiary of Borrower, and any
Wholly-Owned Subsidiary of Borrower may enter into any arrangement or other transaction with
Borrower or any other Wholly Owned Subsidiary of Borrower, in each case under this clause
(E) only if such arrangements and other transactions do not involve any Person other than
Borrower and Wholly-Owned Subsidiaries of Borrower; (F) Borrower may enter into arrangements
or other transactions permitted by Section 5.02(b); and (G) Borrower and its Subsidiaries
may make Permitted MLP Asset Transfers; provided that each Permitted MLP Asset
Transfer individually (or, if a series of related MLP Assets Transfers, in the aggregate),
is for fair value and, in the case of any Permitted MLP Asset Transfer after the Permitted
MLP Asset Transfers made in connection with the formation of an MLP, upon terms
substantially at least as advantageous to Borrower or such Subsidiary as would be obtained
in a comparable arm’s length transaction with a Person not an Affiliate of Borrower or any
Subsidiary of Borrower.




     (g) Use of Proceeds: Regulation U. Use the proceeds of any Borrowing (i) to
purchase or carry, within the meaning of Regulation U, any Margin Stock, (ii) to participate
in any tender offer for the securities of any Person, unless such tender offer has been
approved by the board of directors, general partners or other governing body of such Person
or (iii) for any purpose that would violate or result in a violation of any law or
regulation. Borrower will not, and will not permit any of its Subsidiaries to engage
principally, or as one of its important activities, in the business of extending credit for
the purpose of purchasing or carrying, within the meaning of Regulation U, any Margin Stock.




     (h) Takeover Bids. Use the proceeds of any Borrowing to it to participate in
any unsolicited bid for any other Person.




     (i) Certain Investments, Loans, Advances, Guaranties and Acquisitions. Permit,
or permit any of its Significant Subsidiaries to purchase or acquire (including pursuant to
any merger) any Capital Stock, evidence of indebtedness or other securities of or other
interest in (including any option, warrant or other right to acquire any of the foregoing),
make any loans or advances to, Guarantee any obligation of, or make any investment or other
interest in or capital contribution to any Unrestricted Subsidiary or purchase


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or otherwise acquire (in one transaction or a series of transactions) any assets of any
Unrestricted Subsidiary constituting a business unit, (any of the foregoing, an
“Investment”) at any time other than (i) Investments in MLP Unrestricted
Subsidiaries and (ii) other Investments such that the aggregate amount of Net Tangible
Assets of all Unrestricted Subsidiaries (excluding assets that are subject of Permitted MLP
Asset Transfers, replacements thereof, receivables, inventory and accretions in value of the
MLP Unrestricted Subsidiaries) at such time does not exceed, or would not exceed as a result
of any Investment the lesser of (i) 10% of the Consolidated Net Tangible Assets of Parent
and (ii) 15% of the Consolidated Net Tangible Assets of the Borrower.



          SECTION 5.03 Total Debt to Capitalization Ratio. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will maintain a ratio of
Total Debt for Borrowed Money to Consolidated Capitalization of no greater than 0.65:1.00,
calculated on a quarterly basis.




ARTICLE VI




EVENTS OF DEFAULT




          SECTION 6.01 Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:





     (a) The Borrower shall fail to pay (i) any principal of any Advance when the same
becomes due and payable, or (ii) any interest on any Advance, any fees payable under the Fee
Letter, any Applicable Utilization Fees, the Facility Fee payable pursuant to Section
2.07(a) or any Letter of Credit fees under Section 2.07(c) within five Business Days after
the same becomes due and payable or (iii) any other payment of fees or other amounts payable
under this Agreement or any Note or CAF Note, as the case may be, within ten Business Days
after notice of such payment is received by the Borrower from the Administrative Agent or
the Required Lenders; or




     (b) Any representation or warranty made by the Borrower herein or by the Borrower (or
any of its officers) in this Agreement or any other Loan Document shall prove to have been
incorrect in any material respect when made; or




     (c) (i) The Borrower shall fail to perform or observe any term, covenant or agreement
contained in Sections 5.01(d), (e), (h) or (j)(iii), 5.02 or 5.03, or (ii) the Borrower
shall fail to perform or observe any other term, covenant or agreement contained in this
Agreement on its part to be performed or observed if such failure shall not have been
remedied within 30 days after the earlier of notice thereof to it by the Administrative
Agent or the Required Lenders or discovery thereof by a Responsible Officer of the Borrower;
or




     (d) The Borrower or any of its Significant Subsidiaries (other than a Project Finance
Subsidiary or an Unrestricted Subsidiary) shall fail to pay any principal of or premium or
interest on any Indebtedness for Borrowed Money that is outstanding in a principal amount of
at least $50,000,000 in the aggregate (but excluding Indebtedness outstanding hereunder) of
the Borrower or such Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and
such failure shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Indebtedness; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any such Indebtedness
and shall continue after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or to permit the
acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be
declared to be due and payable, or required to be prepaid or redeemed (other than by a
regularly scheduled required prepayment or redemption), purchased or defeased, or an offer
to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in
each case prior to the stated maturity thereof; or




     (e) The Borrower or any of its Significant Subsidiaries (other than a Project Finance
Subsidiary or an Unrestricted Subsidiary) shall generally not pay its debts as such debts
become due, or


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shall admit in writing its inability to pay its debts generally, or shall make a
general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against the Borrower or any of its Significant Subsidiaries (other than any Project Finance
Subsidiary or an Unrestricted Subsidiary) seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy, insolvency
or reorganization or relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted against
it (but not instituted by it), either such proceeding shall remain undismissed or unstayed
for a period of 30 days, or any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial part of its
property) shall occur; or the Borrower or any of its Significant Subsidiaries (other than
any Project Finance Subsidiary or an Unrestricted Subsidiary) shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts described in this subsection (e); or




     (f) Judgments or orders for the payment of money (not paid or fully covered by
insurance as to which the relevant insurance company has acknowledged coverage) in excess of
$50,000,000 in the aggregate shall be rendered against the Borrower or any of its
Significant Subsidiaries (other than a Project Finance Subsidiary or an Unrestricted
Subsidiary) and either (i) enforcement proceedings shall have been commenced by any creditor
upon such judgment or order or (ii) there shall be any period of 60 consecutive days during
which a stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; or




     (g) For any reason, (i) the Parent fails to own, directly or indirectly, at least 50%
of the economic interest in Borrower, or the Parent fails to own, directly or indirectly, at
least 50% of the outstanding shares of stock, Voting Stock or other ownership interests
having ordinary voting power (other than stock or such other ownership interests having such
power only by reason of the happening of a contingency) to elect directors or other managers
of Borrower, or (ii) until the assets or equity interests (having an aggregate net book
value according to GAAP as of the date of such transfers in excess of $100 million) of
CenterPoint Energy — Mississippi River Transmission Corporation, a Delaware corporation
(“MRT”), are subject to Permitted MLP Asset Transfers (a) the Borrower fails to own,
directly or indirectly, at least 50% of the economic interest in MRT or (b) the Borrower
fails to own at least 50% of the outstanding shares of stock, Voting Stock or other
ownership interests having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency) to elect
directors or other managers of MRT; or (iii) until the assets or equity interests (having an
aggregate net book value according to GAAP as of the date of such transfers in excess of
$100 million and including the Carthage to Perryville natural gas pipeline) of CenterPoint
Energy Gas Transmission Company, a Delaware corporation (“CEGT”), are subject to
Permitted MLP Asset Transfers (a) the Borrower fails to own, directly or indirectly, at
least 50% of the economic interest in CEGT or (b) the Borrower fails to own at least 50% of
the outstanding shares of stock, Voting Stock or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect directors or other managers of CEGT; or
(iv) after Permitted MLP Asset Transfers having an aggregate net book value according to
GAAP as of the date of such transfers in excess of $100 million have been made, Borrower
fails to own, directly or indirectly, at least 50% of the outstanding shares of stock,
Voting Stock or other ownership interests having ordinary voting power (other than stock or
such other ownership interests having such power only by reason of the happening of a
contingency) to elect directors or other managers of any MLP GP for any MLP that has
received Permitted MLP Asset Transfers having an aggregate net book value according to GAAP
as of the date of such transfers in excess of $100 million; or




     (h) The Borrower or any of its ERISA Affiliates shall incur, or could be reasonably
expected to incur, liability with respect to the existence of an event or events,
individually or in the aggregate, that could reasonably be expected to have a Material
Adverse Effect arising out of or in connection with: (i) the occurrence of any ERISA Event;
(ii) the partial or complete withdrawal of the Borrower or any of its ERISA Affiliates from
a Multiemployer Plan; or (iii) the reorganization or termination of a Multiemployer Plan;



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then, and in any such event, the Administrative Agent (i) shall at the request, or may with
the consent, of the Required Lenders, by notice to the Borrower, declare the obligation of each
Lender to make Advances (other than Letter of Credit Advances by an Issuing Bank pursuant to
Section 2.04(c)) and of each Issuing Bank to issue Letters of Credit to be terminated, whereupon
the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare the Notes or CAF Notes (if any), the unpaid
principal amount of all outstanding Advances, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Notes or CAF Notes (if any),
all such interest and all such amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower under the Federal Bankruptcy Code, (A)
the obligation of each Lender to make Advances shall automatically be terminated and (B) the Notes
or CAF Notes (if any), the unpaid principal amount of all outstanding Advances, all such interest
and all such amounts shall automatically become and be due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly waived by the
Borrower.




          SECTION 6.02 Actions in Respect of the Letters of Credit upon Default. If any Event
of Default shall have occurred and be continuing, the Administrative Agent may, or shall at the
request of the Required Lenders, irrespective of whether it is taking any of the actions described
in Section 6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such demand the
Borrower will, pay to the Administrative Agent on behalf of the Lenders in same day funds at the
Administrative Agent’s Office an amount equal to the aggregate Available Amount of all Letters of
Credit then outstanding; provided, however, that in the event of an actual or
deemed entry of an order for relief with respect to the Borrower under the Federal Bankruptcy Code,
the Borrower shall be obligated to pay to the Administrative Agent on behalf of the Lenders in same
day funds at the Administrative Agent’s Office, an amount equal to the aggregate Available Amount
of all Letters of Credit then outstanding, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrower. If at any time the
Administrative Agent determines that any funds held are subject to any right or claim of any Person
other than the Agents and the Lenders or that the total amount of such funds is less than the
aggregate Available Amount of all Letters of Credit, the Borrower will, forthwith upon demand by
the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited and
held, an amount equal to the excess of (a) such aggregate Available Amount over (b) the total
amount of funds, if any, then held that the Administrative Agent determines to be free and clear of
any such right and claim. Upon the drawing of any Letter of Credit for which funds are on deposit,
such funds shall be applied to reimburse the relevant Issuing Bank or Lenders, as applicable, to
the extent permitted by applicable law.




ARTICLE VII




THE ADMINISTRATIVE AGENT




          SECTION 7.01 Authorization and Action. Each Lender and Issuing Bank hereby appoints
and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement and the other Loan Documents as are delegated to
the Administrative Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by this Agreement
(including, without limitation, enforcement or collection of the Notes or CAF Notes, if any), the
Administrative Agent shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such instructions shall
be binding upon all Lenders and all holders of Notes or CAF Notes (if any); provided,
however, that the Administrative Agent shall be required to take any action that exposes
the Administrative Agent to personal liability or that is contrary to this Agreement or applicable
law. The Administrative Agent agrees to give to each Lender prompt notice of each notice given to
it by the Borrower pursuant to the terms of this Agreement.




          SECTION 7.02 Administrative Agent’s Reliance, Etc. Neither the Administrative Agent
nor any of its respective directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with this Agreement, except for
its or their own gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, the Administrative Agent: (i) may consult with legal counsel (including counsel
for the Borrower), independent public accountants and other experts selected by it


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and shall not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in connection with this
Agreement; (iii) shall not have any duty to ascertain or to inquire as to the performance,
observance or satisfaction of any of the terms, covenants or conditions of this Agreement on the
part of the Borrower or the existence at any time of any Default or to inspect the property
(including the books and records) of the Borrower; (iv) shall not be responsible to any Lender for
the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or, if
applicable, the perfection or priority of any lien or security interest created or purported to be
created under or in connection with, this Agreement or any other instrument or document furnished
pursuant hereto; and (v) shall incur no liability under or in respect of this Agreement by acting
upon any notice, consent, certificate or other instrument or writing (which may be by telecopier,
telegram or electronic communication) believed by it to be genuine and signed or sent by the proper
party or parties.




          SECTION 7.03 Citibank and Affiliates. With respect to its Commitment, the Advances
made by it and the Note or CAF Note, if any, issued to it, Citibank shall have the same rights and
powers under this Agreement as any other Lender and may exercise the same as though it were not the
Administrative Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly
indicated, include Citibank in its respective individual capacities. Citibank and its respective
Affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of business with, the
Borrower, any of its Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank was not the Administrative Agent and without
any duty to account therefor to the Lenders. The Administrative Agent shall have no duty to
disclose any information obtained or received by it or any of its Affiliates relating to the
Borrower or any of its Subsidiaries to the extent such information was obtained or received in any
capacity other than as the Administrative Agent.




          SECTION 7.04 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other Lender and based on
the financial statements referred to in Section 4.01 and such other documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.




          SECTION 7.05 Indemnification. (a) The Lenders agree to indemnify the Administrative
Agent (to the extent not reimbursed by the Borrower), ratably according to the respective principal
amounts of the Notes (if any) then held by each of them (or if no Notes are at the time outstanding
or if any Notes are held by Persons that are not Lenders, ratably according to the respective
amounts of their Commitments), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent
in any way relating to or arising out of this Agreement or any action taken or omitted by the
Administrative Agent under this Agreement (collectively, the “Indemnified Costs”),
provided that no Lender shall be liable for any portion of the Indemnified Costs resulting
from the Administrative Agent’s gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out of pocket expenses (including counsel fees) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the
Administrative Agent is not reimbursed for such expenses by the Borrower. In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05
applies whether any such investigation, litigation or proceeding is brought by the Administrative
Agent, any Lender or a third party.




          (b) Each Lender severally agrees to indemnify each Issuing Bank (to the extent not promptly
reimbursed by the Borrower) from and against such Lender’s ratable share (determined as provided
below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against such Issuing Bank in any way relating to or arising out of the
Loan Documents or any action taken or omitted by such Issuing Bank under the



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Loan Documents; provided, however, that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Issuing Bank’s gross negligence or willful
misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction.
Without limitation of the foregoing, each Lender agrees to reimburse such Issuing Bank promptly
upon demand for its ratable share of any costs and expenses (including, without limitation, fees
and expenses of counsel) payable by the Borrower under Section 8.04, to the extent that such
Issuing Bank is not promptly reimbursed for such costs and expenses by the Borrower.




          (c) For purposes of this Section 7.05, each Lender’s ratable share of any amount shall be
determined, at any time, according to the sum of (i) the aggregate principal amount of the Advances
outstanding at such time and owing to such Lender’s, (ii) such Lender’s Pro Rata Shares of the
aggregate Available Amount of all Letters of Credit outstanding at such time, and (iii) such Lender
Party’s Unused Revolving Credit Commitments at such time; provided that the aggregate
principal amount of Letter of Credit Advances owing to any Issuing Bank shall be considered to be
owed to the Lenders ratably in accordance with their respective Revolving Commitments. The failure
of any Lender to reimburse any Agent or any Issuing Bank, as the case may be, promptly upon demand
for its ratable share of any amount required to be paid by the Lenders to such Agent or such
Issuing Bank, as the case may be, as provided herein shall not relieve any other Lender of its
obligation hereunder to reimburse such Agent or such Issuing Bank, as the case may be, for its
ratable share of such amount, but no Lender shall be responsible for the failure of any other
Lender to reimburse such Agent or such Issuing Bank, as the case may be, for such other Lender’s
ratable share of such amount. Without prejudice to the survival of any other agreement of any
Lender hereunder, the agreement and obligations of each Lender contained in this Section 7.05 shall
survive the payment in full of principal, interest and all other amounts payable hereunder and
under the other Loan Documents.




          SECTION 7.06 Successor Administrative Agents. The Administrative Agent may resign at
any time by giving written notice thereof to the Lenders and the Borrower and may be removed at any
time with or without cause by the Required Lenders; provided, however, that any removal of the
Administrative Agent will not be effective until it has also been replaced as Issuing Bank and
released from all of its obligations in respect thereof. Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Administrative Agent. If no successor
Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted
such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of
resignation or the Required Lenders’ removal of the retiring Administrative Agent, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent, which shall be a commercial bank organized under the laws of the United States of America or
of any State thereof and having a combined capital and surplus of at least $500,000,000,
provided that if the Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and Issuing Bank directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this paragraph. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the rights, powers,
discretion, privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under this Agreement.
After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent,
the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement.




          SECTION 7.07 Agents; Lead Arrangers; Global Coordinators. None of the Lenders or
other Persons identified on the facing page or signature pages of this Agreement as a
“co-syndication agent”, “co-documentation agent”, “lead arranger” or “global coordinator” shall
have any right, power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender.


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ARTICLE VIII




MISCELLANEOUS




          SECTION 8.01 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes (if any), nor consent to any departure by the Borrower therefrom, shall in
any event be effective unless the same shall be in writing and signed by the Required Lenders, and
then such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or consent
shall, unless in writing and signed by the relevant Lenders, do any of the following: (a) waive
any of the conditions specified in Section 3.01, without the consent of any affected Lender, (b)
increase the Commitments of any affected Lender, (c) reduce the principal of, or interest on, the
Notes (if any) or any fees or other amounts payable hereunder to such Lender, (d) postpone any date
fixed for any payment of principal of, or interest on, the Notes (if any) or any fees or other
amounts payable hereunder to such Lender, (e) change the percentage of the Commitments or the
aggregate unpaid principal amount of the Notes (if any), the number of Lenders, or the Available
Amount of outstanding Letters of Credit, that shall be required for the Lenders or any of them to
take any action hereunder without the consent of all Lenders, (f) amend Section 2.18 in a manner
that would alter pro rata sharing of payments required thereby or this Section 8.01 without the
consent of all Lenders, or (g) amend, modify or waive any provision of Section 2.04 in a manner
that adversely affects any Swingline Lender without the written consent of the then Swingline
Lender or Swingline Lenders; and provided further that no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders
required above to take such action, affect the rights or duties of the Administrative Agent under
this Agreement or any Note.




          SECTION 8.02 Notices, Etc. (a) All notices and other communications provided for
hereunder shall be either (x) in writing (including telecopier or telegraphic communication) and
mailed, telecopied, telegraphed or delivered or (y) as and to the extent set forth in Section
8.02(b) and in the proviso to this Section 8.02(a), in an electronic medium and delivered as set
forth in Section 8.02(b), if to the Borrower, at its address at P.O. Box 2805, Houston, TX 77252,
Attention: Assistant Treasurer (telecopy: 713 207 3301); if to any Lender, at its Domestic Lending
Office specified opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance pursuant to which it became a Lender; if
to the Global Coordinators, at the addresses specified on Schedule II hereto; and if to the
Administrative Agent, at its address at Two Penns Way, Suite 200, New Castle, Delaware, 19720,
Attention: Bank Loan Syndications Department/Jacqueline Caine (telecopy: 212 994 0961), with a copy
to 388 Greenwich Street, New York, New York, 10013, Attention: Nietzsche Rodricks (telecopy: 212
816 8098); if to the Swingline Lender, to such address notified by such Swingline Lender to the
Borrower and the Administrative Agent; or, as to the Borrower or the Administrative Agent, at such
other address as shall be designated by such party in a written notice to the other parties and, as
to each other party, at such other address as shall be designated by such party in a written notice
to the Borrower and the Administrative Agent; provided, that materials required to be
delivered pursuant to Section 5.01(j)(i), (ii) and (iv) shall be delivered to the Administrative
Agent as specified therein. All such notices and communications shall, when mailed, telecopied,
telegraphed or emailed, be effective when deposited in the mails, telecopied, delivered to the
telegraph company or confirmed by email, respectively, except that notices and communications to
the Administrative Agent pursuant to Article II, III or VII shall not be effective until received
by the Administrative Agent. Delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or the Notes or CAF Notes (if any) or of any Exhibit
hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed
counterpart thereof.




          (b) The Borrower hereby acknowledges that (i) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to
the Borrower or its securities) (each, a “Public Lender”) and (ii) the Administrative Agent
will make available to the Lenders certain notices, requests, financial statements, financial and
other reports, certificates and other information materials, but excluding any such communication
that initiates or responds to the legal process (all such non-excluded information being referred
to herein collectively as the “Communications”) on IntraLinks or another relevant website
(whether a commercial, third-party website or whether sponsored by the Administrative Agent) (the
“Platform”). The Borrower hereby agrees that all Communications that are to be made
available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,
shall mean that the word “PUBLIC” shall appear prominently on the first page thereof, (ii) by
marking Communications “PUBLIC,” the Borrower shall be deemed to



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have authorized the Administrative Agent, the Issuing Banks and the Lenders to treat such
Communications as not containing any material non-public information with respect to the Borrower
or its securities for purposes of United States Federal and state securities laws, it being
understood that certain of such Communications may be subject to the confidentiality requirements
hereof, (iii) all Communications marked “PUBLIC” are permitted to be made available through a
portion of the Platform designated “Public Investor,” and (iv) the Administrative Agent shall be
entitled to treat any Communications that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Investor.” Notwithstanding the
foregoing, (A) the Borrower shall be under no obligation to mark any Communications “PUBLIC,” and
each Public Lender hereby waives its right to receive any Communications that are not marked
“PUBLIC”; and (B) the Administrative Agent shall treat Communications that are deemed to have been
delivered based on notice pursuant to the last sentence of Section 5.01(j) as “PUBLIC.”




          (c) [Reserved].




          (d) [Reserved].




          (e) Each Lender agrees that e-mail notice to it (at the address provided pursuant to the next
sentence and deemed delivered as provided in the next paragraph) specifying that Communications has
been posted to the Platform shall constitute effective delivery of such Communications to such
Lender for purposes of this Agreement. Each Lender agrees (i) to notify the Administrative Agent
in writing (including by electronic communication) from time to time to ensure that the
Administrative Agent has on record an effective e-mail address for such Lender to which the
foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be
sent to such e-mail address.




          (f) Each party hereto agrees that any electronic communication referred to in this Section
8.02 shall be deemed delivered upon the posting of a record of such communication (properly
addressed to such party at the e-mail address provided to the Administrative Agent) as “sent” in
the e-mail system of the sending party or, in the case of any such communication to the
Administrative Agent, upon the posting of a record of such communication as “received” in the
e-mail system of the Administrative Agent; provided that if such communication is not so received
by the Administrative Agent during the normal business hours of the Administrative Agent, such
communication shall be deemed delivered at the opening of business on the next Business Day for the
Administrative Agent.




          (g) Each party hereto acknowledges that (i) the distribution of material through an electronic
medium is not necessarily secure and there are confidentiality and other risks associated with such
distribution, (ii) the Communications and the Platform are provided “as is” and “as available,”
(iii) none of the Administrative Agent, its affiliates nor any of their respective officers,
directors, employees, agents, advisors or representatives (collectively, the “Citigroup
Parties”) warrants the adequacy of the Platform or the accuracy or completeness of any
Communications, and each Citigroup Party expressly disclaims liability for errors or omissions in
any Communications or the Platform, and (iv) no warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability, fitness for a particular
purpose, non-infringement of third party rights or freedom from viruses or other code defects, is
made by any Citigroup Party in connection with any Communications or the Platform.




          SECTION 8.03 No Waiver; Remedies. No failure on the part of any Lender or Agent to
exercise, and no delay in exercising, any right hereunder or under any Note or CAF Note shall
operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude
any other or further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.




          SECTION 8.04 Costs and Expenses. (a) The Borrower agrees to pay on demand all
reasonable costs and expenses of the Administrative Agent and Global Coordinators in connection
with the preparation, execution, delivery, administration, modification and amendment of or any
consent or waiver under this Agreement, the Notes (if any) and the other documents to be delivered
hereunder, including, without limitation, (A) all reasonable due diligence, syndication (including
printing, distribution and bank meetings), computer and duplication expenses, (B) the reasonable
fees and expenses of counsel for the Administrative Agent and the Lead Arrangers with respect
thereto and with respect to advising the Administrative Agent as to its rights and responsibilities
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Agreement and (C) all reasonable out-of-pocket expenses incurred by the Issuing Banks in
connection with the issuance, amendment, renewal or extension of any Letter of Credit or any
demand for payment thereunder. The Borrower further agrees to pay on demand all costs and expenses
of the Administrative Agent and the Lenders, if any (including, without limitation, reasonable
counsel fees and expenses), in connection with the enforcement (whether through negotiations, legal
proceedings or otherwise) of this Agreement, the Notes (if any) and the other documents to be
delivered hereunder, including, without limitation, reasonable fees and expenses of counsel for the
Administrative Agent, the Lead Arrangers and each Lender in connection with the enforcement of
rights under this Section 8.04(a).




          (b) The Borrower agrees to indemnify and hold harmless the Administrative Agent, the Global
Coordinators and each Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities and reasonable expenses (including, without limitation, reasonable
fees and expenses of counsel) incurred by or asserted or awarded against any Indemnified Party, in
each case arising out of or in connection with or by reason of (including, without limitation, in
connection with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes or CAF Notes (if any), this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the Advances or (ii) the
actual or alleged presence of Hazardous Materials on any property of the Borrower or any of its
Subsidiaries or any Environmental Action relating in any way to the Borrower or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or expense is found in a
final, non appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 8.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought
by the Borrower, its directors, equityholders or creditors, any Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. Each of the parties hereto agrees not to assert
any claim for special, indirect, consequential or punitive damages against any other party hereto,
any of their Affiliates, or any of their respective directors, officers, employees, attorneys and
agents, on any theory of liability arising out of or otherwise relating to the Notes or CAF Notes
(if any), this Agreement, the Letters of Credit any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Advances.




          (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance or CAF
Eurodollar Rate Advance is made by the Borrower to or for the account of a Lender other than on the
last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant
to Sections 2.11(d) or (e), 2.13 or 2.15, acceleration of the maturity of the Notes or CAF Notes
(if any), as the case may be, pursuant to Section 6.01 or for any other reason, the Borrower shall,
upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender any amounts required to compensate such Lender
for any additional losses, costs or expenses that it may reasonably incur as a result of such
payment or Conversion, including, without limitation, any loss, cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.




          (d) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in Sections 2.13, 2.16 and 8.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder and under the
Notes or CAF Notes (if any).




          SECTION 8.05 Right of Set off. Upon (i) the occurrence and during the continuance of
any Event of Default and (ii) the making of the request or the granting of the consent specified by
Section 6.01 to authorize the Administrative Agent to declare the Notes or CAF Notes, if any, due
and payable pursuant to the provisions of Section 6.01, each Lender, the Issuing Banks and each of
their respective Affiliates is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final, in whatever currency) at any time held and other indebtedness at any
time owing by such Lender or such Affiliate to or for the credit or the account of the Borrower
against any and all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note or CAF Note, as the case may be, held by such Lender or the Issuing Banks,
whether or not such Lender or Issuing Bank shall have made any demand under this Agreement or such
Note or CAF Note and although such obligations may be unmatured or are owed to a branch or office
of such Lender or the Issuing Bank different from the branch or office holding such deposit or
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notify the Borrower after any such set off and application, provided that the failure
to give such notice shall not affect the validity of such set off and application. The rights of
each Lender, the Issuing Bank and its Affiliates under this Section are in addition to other rights
and remedies (including, without limitation, other rights of set off) that such Lender, Issuing
Bank and its Affiliates may have.




          SECTION 8.06 Binding Effect. This Agreement shall become effective (other than
Sections 2.01 and 2.04, which shall only become effective upon satisfaction of the conditions
precedent set forth in Section 3.01) when it shall have been executed by the Borrower and the
Administrative Agent and when the Administrative Agent shall have been notified by each Lender that
such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the
Borrower, the Administrative Agent and each Lender and their respective successors and assigns,
except that the Borrower shall not have the right to assign its rights hereunder or any interest
herein without the prior written consent of each Lender.




          SECTION 8.07 Assignments and Participations. (a) Each Lender may assign to one or
more Persons all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment, the Revolving Advances owing to it and the
Note or Notes, if any, held by it); provided, however, that (i) each such
assignment shall be of a constant, and not a varying, percentage of all rights and obligations
under this Agreement (other than any right to make CAF Advances, CAF Advances owing to it and CAF
Note or CAF Notes, if any), (ii) except in the case of an assignment to a Person that, immediately
prior to such assignment, was a Lender or an assignment of all of a Lender’s rights and obligations
under this Agreement, the amount of the Commitment of the assigning Lender being assigned pursuant
to each such assignment (determined as of the date of the Assignment and Acceptance with respect to
such assignment) shall in no event be less than $5,000,000 or an integral multiple of $1,000,000 in
excess thereof, (iii) each such assignment shall be to an Eligible Assignee, (iv) the parties to
each such assignment shall execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Note, if any, subject to
such assignment, and (v) the parties to each such assignment shall deliver to the Administrative
Agent a processing and recordation fee of $3,500. Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and Acceptance, (x) the
assignee thereunder shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights (other than its rights under Sections 2.14, 2.17 and 8.04 to the
extent any claim thereunder relates to an event arising prior to such assignment) and be released
from its obligations under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto).




          (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under this
Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Administrative
Agent, such assigning Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee;
(vi) such assignee appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all of the obligations that by the terms of this Agreement are required to be
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          (c) The Administrative Agent shall maintain at its address referred to in Section 8.02 a copy
of each Assignment and Acceptance delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and the Commitment of, and principal amount
of the Advances owing to, each Lender from time to time (the “Register”). The entries in
the Register shall be prima facie evidence of the correctness thereof, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register
as a Lender hereunder for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.




          (d) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note, if any, subject to
such assignment, the Administrative Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment
and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrower. Within five Business Days after its receipt of such notice, the
Borrower, at its own expense, shall execute and deliver to the Administrative Agent in exchange for
the surrendered Note a new Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Acceptance and, if the assigning Lender
has retained a Commitment hereunder, a new Note to the order of the assigning Lender in an amount
equal to the Commitment retained by it hereunder. Such new Note shall be in an aggregate principal
amount equal to the aggregate principal amount of such surrendered Note or Notes, shall be dated
the effective date of such Assignment and Acceptance and shall otherwise be in substantially the
form of Exhibit A-1 or Exhibit A-2 hereto.




          (e) Each Issuing Bank may assign to one or more Eligible Assignees all or a portion of its
rights and obligations under the undrawn portion of its Letter of Credit Commitment at any time;
provided, however, that (i) except in the case of an assignment to a Person that
immediately prior to such assignment was an Issuing Bank or an assignment of all of an Issuing
Bank’s rights and obligations under this Agreement, the amount of the Letter of Credit Commitment
of the assigning Issuing Bank being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in no event be less
than $5,000,000 and shall be in an integral multiple of $1,000,000 in excess thereof, (ii) each
such assignment shall be to an Eligible Assignee and (iii) the parties to each such assignment
shall execute and deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with a processing and recordation fee of $3,500.




          (f) Each Lender may sell participations to one or more banks or other entities (other than the
Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitment, the Advances
owing to it and the Note or Notes, if any, held by it); provided, however, that (i)
such Lender’s obligations under this Agreement (including, without limitation, its Commitment to
the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, (iii) such Lender shall remain
the holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve any amendment or waiver of
any provision of this Agreement or any Note, or any consent to any departure by the Borrower
therefrom, except to the extent that such amendment, waiver or consent would reduce the principal
of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any payment of principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation. A Participant shall not be entitled to receive any greater
payment under Sections 2.14 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent.




          (g) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 8.07, disclose to the assignee or participant or proposed
assignee or participant, any information relating to the Borrower furnished to such Lender by or on
behalf of the Borrower; provided that, prior to any such disclosure, the assignee or
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to preserve the confidentiality of any Confidential Information relating to the Borrower
received by it from such Lender.




          (h) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time and without the consent of the Borrower or the Administrative Agent (i) create a security
interest in all or any portion of its rights under this Agreement (including, without limitation,
the Advances owing to it and the Note or Notes held by it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve System, and (ii) with
notice to the Borrower and the Administrative Agent, assign all or part of its rights and
obligations under this Agreement to any of its Affiliates.




          (i) In the event that any Lender requests payments of reimbursement, compensation or
indemnification from the Borrower pursuant to Sections 2.02, 2.14 or 2.17 herein, then the Borrower
shall have the right, but not the obligation, at its own expense, upon 5 Business Days notice to
such Lender and the Administrative Agent, to replace such Lender with an assignee (in accordance
with and subject to the restrictions contained in paragraphs (a) and (b) above), and such Lender
hereby agrees to transfer and assign without recourse (in accordance with and subject to the
restrictions contained in paragraphs (a) and (b) above) all its interests, rights and obligations
in respect of its Commitment to such assignee; provided, however, that (i) no such
assignment shall conflict with any law, rule and regulation or order of any governmental authority,
(ii) no Default has occurred or is continuing, (iii) the Borrower has satisfied all of its
obligations under this Agreement relating to such assigning Lender through the date of such
assignment, (iv) the Borrower shall pay to the Administrative Agent the administrative fee in the
amount of $3,500 if such replacement Lender assignee is not an existing Lender, and (v) such
assignee shall pay to such assigning Lender in immediately available funds on the date of such
assignment the principal of and interest accrued to the date of payment on the Advances made by
such Lender hereunder and the Borrower, the Administrative Agent or such assignee, as applicable,
shall pay to such Lender all other amounts accrued for such Lender’s account or owed to it
hereunder.




          SECTION 8.08 Patriot Act Notification. Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub.L. 107-56 (signed into law October 26, 2001))
(the “Patriot Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender or the Administrative Agent, as applicable, to identify the
Borrower in accordance with the Patriot Act. The Borrower shall, and shall cause each of their
Subsidiaries to, provide, to the extent commercially reasonable, such information and take such
actions as are reasonably requested by the Administrative Agent or any Lenders in order to assist
the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.




          SECTION 8.09 Confidentiality. Neither the Administrative Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of the Borrower,
other than (a) to the Administrative Agent’s or such Lender’s Affiliates and their officers,
directors, employees, agents and advisors and, as contemplated by Section 8.07(f), to actual or
prospective assignees and participants, and then only on a confidential basis, (b) as required by
any law, rule or regulation or judicial process and (c) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking or any other regulatory or
self-regulatory authorities. The Borrower may disclose to any and all Persons, without limitation
of any kind, the U.S. tax treatment and U.S. tax structure of the transactions contemplated by this
Agreement and all materials of any kind (including opinions or other tax analyses) that are
provided to the Borrower relating to such U.S. tax treatment and U.S. tax structure.




          SECTION 8.10 Governing Law. This Agreement and the Notes (if any) shall be governed
by, and construed in accordance with, the laws of the State of New York.




          SECTION 8.11 Counterparts; Integration; Electronic Execution.




          (a) Execution in Counterparts, Integration. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one
and the same agreement. This Agreement, and any separate letter agreements with respect to fees
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Lead Arrangers, constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Delivery of an executed counterpart of a signature page to
this Agreement by telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.




          (b) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Acceptance shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.




          SECTION 8.12 Removal of Lender. Notwithstanding anything herein to the contrary, the
Borrower may, at any time in its sole discretion, remove any Lender upon 15 Business Days’ written
notice to such Lender and the Administrative Agent (the contents of which notice shall be promptly
communicated by the Administrative Agent to each other Lender), such removal to be effective at the
expiration of such 15-day notice period; provided, however, that no Lender may be
removed hereunder (i) at a time when an Event of Default shall have occurred and be continuing or
(ii) after giving effect to the removal, the Total Aggregate Outstanding Extensions of Credit would
exceed the total of the Revolving Commitments. Each notice by the Borrower under this Section
shall constitute a representation by the Borrower that the removal described in such notice is
permitted under this Section. Concurrently with such removal, the Borrower shall pay to such
removed Lender all amounts owing to such Lender hereunder and under any other Loan Document in
immediately available funds. Upon full and final payment hereunder of all amounts owing to such
removed Lender, such Lender shall make appropriate entries in its accounts evidencing payment of
all Loans hereunder and releasing the Borrower from all obligations owing to the removed Lender in
respect of the Loans hereunder and surrender to the Administrative Agent for return to the Borrower
any Notes of the Borrower then held by it. Effective immediately upon such full and final payment,
such removed Lender will not be considered to be a “Lender” for purposes of this Agreement except
for the purposes of any provision hereof that by its terms survives the termination of this
Agreement and the payment of the amounts payable hereunder. Effective immediately upon such
removal, the Commitments of such removed Lender shall immediately terminate and such Lender’s
participation share in any outstanding Letters of Credit shall immediately terminate and such
participation share shall be divided among the remaining Lenders according to their Pro Rata Share.
Such removal will not, however, affect the Commitments of any other Lender hereunder.




          SECTION 8.13 Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the Notes or CAF Notes (if any), or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement or the Notes or CAF Notes (if any) in the courts of
any jurisdiction.




          (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or the
Notes or CAF Notes (if any) in any New York State or federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.


CERC
Credit Agreement










 



 


          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.




	 	 	 	 	 
	 	CENTERPOINT ENERGY RESOURCES CORP., as Borrower

 	 
	 	By  	/s/
Marc Kilbride	 
	 	 	Name: Marc Kilbride	 
	 	 	Title: Vice President and Treasurer	 
	 	 	 	 
	 



CERC
Credit Agreement










 



 

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent and a Lender

 	 
	 	By 	/s/  Nietzsche Rodricks	 
	 	 	Name:  Nietzsche Rodricks
	 	 	Title:    Vice President
	 	 	 	 






CERC
Credit Agreement







 



 

	 	 	 	 	 




	 	 	 	 	 
	 	DEUTSCHE BANK SECURITIES INC. as Co-Syndication Agent

 	 
	 	By  	/s/  Ming K. Chu	 
	 	 	Name:  Ming K. Chu	 
	 	 	Title:   Vice President	 
	 	 	 	 







	 	 	 	 	 
	 	By  	/s/  Rainer Meier	 
	 	 	Name:  Rainer Meier	 
	 	 	Title:   Vice President	 
	 	 	 	 
	 	 	 
	 	CERC
Credit Agreement	 








 



 

	 	 	 	 	 



	 	 	 	 	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION, as Co-

     Syndication Agent and a Lender

 	 
	 	By  	/s/
John P. Wofferd	 
	 	 	Name: John P. Wofferd

Title: Vice President	 
	 	 	 	 






CERC
Credit Agreement







 





	 	 	 	 	 
	 	JPMorgan Chase Bank, N.A. 

 	 
	 	By  	/s/
Robert Traband
 	 
	 	 	Name:  	Robert Traband 	 
	 	 	Title:  	Executive Director 	 
	 



CERC Credit Agreement





 









 








	 	 	 	 	 
	 	BARCLAYS BANK PLC, as a Bank

 	 
	 	By  	/s/
Sydney Dennis

 	 
	 	 	Name:  	Sydney Dennis 	 
	 	 	Title:  	Director 	 
	 



CERC Credit Agreement





 









 





	 	 	 
	 

	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 
	 	 
	 

	 	/s/ Marcus Tarlington
	 

	 	 
	 

	 	Name: Marcus Tarlington
	 

	 	Title: Director
	 
	 	 
	 

	 	/s/ Rainer Meier
	 

	 	 
	 

	 	Name: Rainer Meier
	 

	 	Title: Vice President






CERC
Credit Agreement — Signature Page




 









 





	 	 	 	 	 
	 	Wachovia Banl, NA 

 	 
	 	By  	/s/
Henry R. Biedrzycki
 	 
	 	 	Title:          
HENRY R. BIEDRZYCKI       	 
	 	 	                                            DIRECTOR 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	ABN AMRO Bank N.V. 

 	 
	 	By  	/s/
Jim Moyes
 	 
	 	 	Title:        Jim Moyes 	 
	 	 	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By  	/s/
Scott Donaldson
 	 
	 	 	Title: Scott Donaldson  	 
	 	 	Director 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	[[The Bank of Nova Scotia] 

 	 
	 	By:  	/s/
Thane Rattew
 	 
	 	 	Name:  	Thane Rattew 	 
	 	 	Title:  	Managing Director 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	Credit Suisse, Cayman Islands
Branch 

 	 
	 	By:  	Brian Caldwell
 	 
	 	 	Name:  	Brian Caldwell  	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Nupur Kumar

 	 
	 	 	Name:  	Nupur Kumar 	 
	 	 	Title:  	Associate 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC 

 	 
	 	By  	/s/
Emily Freedman
 	 
	 	 	Name:  	Emily Freedman  	 
	 	 	Title:  	Vice President 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	UBS LOAN FINANCE LLC 




	 	By  	/s/
Irja R. Otsa
 	 
	 	 	Title:        Associate Director 	 
	 	 	 
	 



	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By  	/s/
Mary E. Evens
 	 
	 	 	Title:        Associate Director 	 
	 	 	 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	The Bank of Tokyo-Mitsubishi UFJ Limited, 

New York Branch 

 	 
	 	By  	/s/
Alan Reiter

 	 
	 	 	Title:   A. Reiter      	 
	 	 	Authorized Signatory 	 
	 



CERC Credit Agreement





 









 







	 	 	 	 	 
	 	MORGAN STANLEY BANK 

 	 
	 	By  	/s/
Daniel Twenge

 	 
	 	 	Title:         Daniel Twenge 	 
	 	 	Authorized Signatory

Morgan Stanley Bank 	 
	 



CERC Credit Agreement





 









 







	 	 	 	 	 
	 	LEHMAN BROTHERS BANK, FSB 

 	 
	 	By  	/s/
Errington Hibbert
 	 
	 	 	Title: Managing Director        	 
	 	 	 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	SunTrust Bank 

 	 
	 	By  	/s/
Yann Pirio
 	 
	 	 	Name:  	Yann Pirio 	 
	 	 	Titte: Vice President 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	HSBC Bank USA, N.A.

 	 
	 	By  	/s/
Jennifer L. Diedzic
 	 
	 	 	Title: Assistant Vice President 	 
	 	 	 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	ROYAL BANK OF CANADA 

 	 
	 	By  	/s/
David A. McCluskey
 	 
	 	 	Title:    Authorized Signatory 	 
	 	 	 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	 	Comerica Bank
	 
	 	 	 	 
	 

	 	By
	 	/s/ Chuck Johnson
	 

	 	 	 	 
	 

	 	
	 	Name: Chuck Johnson
	 

	 	
	 	Title:    Vice President






CERC Credit Agreement




	 	 	 	 	 



 









 






	 	 	 	 	 
	 	The Northern Trust Company 

 	 
	 	By  	/s/
Peter Hallan
 	 
	 	 	Peter Hallan 	 
	 	 	Vice President 	 
	 



CERC Credit Agreement





 









 





	 	 	 	 	 
	 	Wells Fargo Bank, N.A. 

 	 
	 	By  	/s/
Jo Ann Vasquez
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 



CERC Credit Agreement





 









 



 

	 	 	 	 	 




Schedule I




List of Applicable Lending Offices




	 	 	 	 	 
	 

	 	Bank of America, National
Association
	 	901 Main Street
	 

	 	 	 	Dallas, TX 75202
	 

	 	 	 	Account Name: Credit Services
	 

	 	 	 	Reference: CenterPoint Energy Resources
	 
	 	 	 	 
	 

	 	Deutsche Bank Securities Inc.
	 	Domestic Office:
	 

	 	 	 	Deutsche Bank AG New York Branch
	 

	 	 	 	60 Wall Street
	 

	 	 	 	New York, NY 10005
	 

	 	 	 	Reference: CenterPoint Energy, Inc.
	 
	 	 	 	 
	 

	 	 
	 	Eurodollar Office:
	 

	 	 	 	Deutsche Bank AG New York Branch
	 

	 	 	 	60 Wall Street
	 

	 	 	 	New York, NY 10005
	 

	 	 	 	Reference: CenterPoint Energy, Inc.
	 
	 	 	 	 
	 

	 	Citibank, N.A.
	 	Domestic Office:
	 

	 	 	 	Two Penns Way, Suite 200
	 

	 	 	 	New Castle, DE 19720
	 

	 	 	 	Attn: Lauren Wendolowski
	 

	 	 	 	Reference: CenterPoint Energy Resources
	 
	 	 	 	 
	 

	 	 
	 	Eurodollar Office:
	 

	 	 	 	Two Penns Way, Suite 200
	 

	 	 	 	New Castle, DE 19720
	 

	 	 	 	Attn: Lauren Wendolowski
	 

	 	 	 	Reference: CenterPoint Energy Resources












 



 


Schedule II




Global Coordinators’ Addresses




	 	 	 	 	 
	 

	 	Citigroup Global Markets Inc.
	 	390 Greenwich Street, 1st Floor
	 

	 	 	 	New York, NY 10013
	 

	 	 	 	Attn: Maureen Maroney
	 

	 	 	 	Tel: 212 723 6794
	 

	 	 	 	Telecopy: 646 291 1772
	 

	 	 	 	maureen.p.maroney@citi.com
	 
	 	 	 	 
	 

	 	J.P. Morgan Securities Inc.
	 	270 Park Avenue
	 

	 	 	 	New York, NY 10017
	 

	 	 	 	Attn: Lisa Kopff
	 

	 	 	 	Tel: 212 270 6091
	 

	 	 	 	Telecopy: 212 270 1063
	 

	 	 	 	lisa.kopff@chase.com












 





Schedule III




SCHEDULE OF COMMITMENTS




	 	 	 	 	 
	Bank	 	Commitment	 
	JPMorgan Chase Bank, N.A.
	 	$	69,795,918.36	 
	Citibank, N.A.
	 	$	69,795,918.36	 
	Bank of America, N.A.
	 	$	67,857,142.86	 
	Barclays
Bank plc
	 	$	67,857,142.86	 
	Deutsche Bank AG New York Branch
	 	$	67,857,142.86	 
	Wachovia Bank, N.A.
	 	$	67,857,142.86	 
	ABN AMRO
Bank, N.V.
	 	$	58,163,265.30	 
	The Bank of Nova Scotia
	 	$	58,163,265.30	 
	Credit Suisse, Cayman Islands Branch
	 	$	58,163,265.30	 
	The Royal
Bank of Scotland plc
	 	$	58,163,265.30	 
	UBS Loan Finance LLC
	 	$	58,163,265.30	 
	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	 	$	34,897,959.19	 
	Morgan Stanley Bank
	 	$	34,897,959.19	 
	Lehman Brothers Bank, FSB
	 	$	34,897,959.19	 
	SunTrust Bank
	 	$	34,897,959.19	 
	HSBC Bank USA, N.A.
	 	$	29,081,632.65	 
	Royal Bank of Canada
	 	$	29,081,632.65	 
	Comerica Bank
	 	$	19,387,755.10	 
	The Northern Trust Company
	 	$	15,510,204.09	 
	Wells Fargo Bank, N.A.
	 	$	15,510,204.09	 
	Total:
	 	$	950,000,000.00	 






LETTER OF CREDIT COMMITMENTS




	 	 	 	 	 
	Bank of America, National Association
	 	$	100,000,000.00	 
	SunTrust Bank
	 	$	100,000,000.00	 
	Total:
	 	$	200,000,000.00	 







4