oge3rdqtr10qex1001.htm



Exhibit 10.01






















CREDIT AGREEMENT







DATED AS OF APRIL 1, 2008







AMONG







ENOGEX LLC,







THE LENDERS,







WACHOVIA BANK, NATIONAL ASSOCIATION


AS ADMINISTRATIVE AGENT







AND







THE ROYAL BANK OF SCOTLAND PLC


AS SYNDICATION AGENT







AND







JPMORGAN CHASE BANK, N.A.,


MIZUHO CORPORATE BANK, LTD.,


AND


UNION BANK OF CALIFORNIA







AS CO-DOCUMENTATION AGENTS













	  
	
WACHOVIA CAPITAL MARKETS LLC


	
AND


	
RBS SECURITIES CORPORATION D/B/A RBS GREENWICH CAPITAL


	  
	
AS JOINT LEAD ARRANGERS AND JOINT BOOK RUNNERS


 




































  





  











  








TABLE OF CONTENTS








 



	ARTICLE I  DEFINITIONS	
1










	
  

	
1.1

	
Certain Defined Terms

	
1







 




 



	ARTICLE II  THE CREDITS	 18










	
  

	
2.1

	
Commitment; Conversion to Term Loan

	

18










	
  

	
2.2

	
Required Payments; Termination

	

19










	
  

	
2.3

	
Ratable Loans

	

19










	
  

	
2.4

	
Types of Advances

	

19










	
  

	
2.5

	
Facility Fee; Utilization Fee; Reductions in Aggregate Commitment

	

19










	
  

	
2.6

	
Minimum Amount of Each Advance

	

20










	
  

	
2.7

	
Optional Principal Payments

	

20










	
  

	
2.8

	
Method of Selecting Types and Interest Periods for New Advances (other than 


Swing Line Loans)

	

 


20










	
  

	
2.9

	
Conversion and Continuation of Outstanding Advances

	

20










	
  

	
2.10

	
Changes in Interest Rate, etc.

	

21










	
  

	
2.11

	
Rates Applicable After Default

	

21










	
  

	
2.12

	
Method of Payment

	

22










	
  

	
2.13

	
Noteless Agreement; Evidence of Indebtedness

	

22










	
  

	
2.14

	
Telephonic Notices

	

23










	
  

	
2.15

	
Interest Payment Dates; Interest and Fee Basis

	

23










	
  

	
2.16

	
Notification of Advances, Interest Rates, Prepayments and Commitment Reductions; 


Availability of Loans

	

 


23










	
  

	
2.17

	
Lending Installations

	

23










	
  

	
2.18

	
Non-Receipt of Funds by the Agent

	

24










	
  

	
2.19

	
Replacement of Lender

	

24










	
  

	
2.20

	
Facility LCs

	

24










	
  

	
2.21

	
Extension of Revolving Credit Termination Date

	

28










	
  

	
2.22

	
Increase of Aggregate Commitment

	

29










	
  

	
2.23

	
Swing Line Loans

	

29









 





	ARTICLE III  YIELD PROTECTION; TAXES	 31










	
  

	
3.1

	
Yield Protection

	

31










	
  

	
3.2

	
Changes in Capital Adequacy Regulations

	

32










	
  

	
3.3

	
Availability of Types of Advances

	

32










	
  

	
3.4

	
Funding Indemnification

	

32










	
  

	
3.5

	
Taxes

	

33










	
  

	
3.6

	
Lender Statements; Survival of Indemnity

	

35










	
  

	
3.7

	
Alternative Lending Installation

	

35











 



	ARTICLE IV  CONDITIONS PRECEDENT	 35










	
  

	
4.1

	
Initial Credit Extension

	


35












	
  

	
4.2

	
Each Credit Extension

	


37













 



	ARTICLE V  REPRESENTATIONS AND WARRANTIES	 37










	
  

	
5.1

	
Existence and Standing

	

37










	
  

	
5.2

	
Authorization and Validity

	

37










	
  

	
5.3

	
No Conflict; Government Consent

	

38










	
  

	
5.4

	
Financial Statements

	

38













  





i











  














	
  

	
5.5

	
Taxes

	

38










	
  

	
5.6

	
Subsidiaries

	

38










	
  

	
5.7

	
Use of Proceeds; Margin Stock

	

38










	
  

	
5.8

	
Compliance With Laws

	

39










	
  

	
5.9

	
Investment Company Act

	

39










	
  

	
5.10

	
Compliance with OFAC Rules and Regulations

	

39










 



	
ARTICLE VI  COVENANTS

	 39








	
  

	
6.1

	
Financial Reporting

	

39










	
  

	
6.2

	
Use of Proceeds

	

40










	
  

	
6.3

	
Notice of Default

	

41










	
  

	
6.4

	
Maintenance of Existence

	

41










	
  

	
6.5

	
Taxes

	

41










	
  

	
6.6

	
Insurance

	

41










	
  

	
6.7

	
Compliance with Laws

	

41










	
  

	
6.8

	
Maintenance of Properties

	

41










	
  

	
6.9

	
Inspection; Keeping of Books and Records

	

41










	
  

	
6.10

	
Fundamental Changes

	

42










	
  

	
6.11

	
Indebtedness

	

42










	
  

	
6.12

	
Liens

	

43










	
  

	
6.13

	
Affiliates

	

46










	
  

	
6.14

	
Restricted Payments

	

46










	
  

	
6.15

	
Nature of Business

	

46










	
  

	
6.16

	
Consolidated Leverage Ratio

	

46










	
  

	
6.17

	
Excluded Subsidiaries

	

47










 



	ARTICLE VII  DEFAULTS	 47







 



	ARTICLE VIII  ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES	 49












	
  

	
8.1

	
Acceleration/Remedies

	


49












	
  

	
8.2

	
Amendments

	

51










	
  

	
8.3

	
Preservation of Rights

	

51











 



	ARTICLE IX  GENERAL PROVISIONS	 52










	
  

	
9.1

	
Survival of Representations

	


52












	
  

	
9.2

	
Governmental Regulation

	


52












	
  

	
9.3

	
Headings

	


52












	
  

	
9.4

	
Entire Agreement

	


52












	
  

	
9.5

	
Several Obligations; Benefits of this Agreement

	


52












	
  

	
9.6

	
Expenses; Indemnification

	

52










	
  

	
9.7

	
Numbers of Documents

	

53










	
  

	
9.8

	
Accounting

	

53










	
  

	
9.9

	
Severability of Provisions

	

53










	
  

	
9.10

	
Nonliability of Lenders

	

54










	
  

	
9.11

	
Confidentiality

	

54










	
  

	
9.12

	
Lenders Not Utilizing Plan Assets

	

54










	
  

	
9.13

	
Nonreliance

	

54










	
  

	
9.14

	
Disclosure

	

54










	
  

	
9.15

	
USA Patriot Act Notification

	

55










	
  

	
9.16

	
Defaulting Lender

	

55










	
  

	
9.17

	
Excluded Subsidiaries

	

55













  





ii











  















 



	ARTICLE X  THE AGENT	 55










	
  

	
10.1

	
Appointment; Nature of Relationship

	


55












	
  

	
10.2

	
Powers

	

56










	
  

	
10.3

	
General Immunity

	

56










	
  

	
10.4

	
No Responsibility for Loans, Recitals, etc.

	

56










	
  

	
10.5

	
Action on Instructions of Lenders

	

56










	
  

	
10.6

	
Employment of Agents and Counsel

	

56










	
  

	
10.7

	
Reliance on Documents; Counsel

	

56










	
  

	
10.8

	
Agent’s Reimbursement and Indemnification

	

57










	
  

	
10.9

	
Notice of Default

	

57










	
  

	
10.10

	
Rights as a Lender

	

57










	
  

	
10.11

	
Lender Credit Decision

	

57










	
  

	
10.12

	
Successor Agent

	

58










	
  

	
10.13

	
Agent and Arrangers’ Fees

	

58










	
  

	
10.14

	
Delegation to Affiliates

	

58










	
  

	
10.15

	
Syndication Agent and Co-Documentation Agents

	

58










 



	ARTICLE XI  SETOFF; RATABLE PAYMENTS	 59








	
  

	
11.1

	
Setoff

	

59










	
  

	
11.2

	
Ratable Payments

	

59










 



	ARTICLE XII  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS	 59








	
  

	
12.1

	
Successors and Assigns

	


59












	
  

	
12.2

	
Participations

	

60










	
  

	
12.3

	
Assignments

	

61










	
  

	
12.4

	
Dissemination of Information

	

62










	
  

	
12.5

	
Tax Certifications

	

62











 



	ARTICLE XIII  NOTICES	 62










	
  

	
13.1

	
Notices

	

62










	
  

	
13.2

	
Change of Address

	

62











 



	ARTICLE XIV  COUNTERPARTS	 63





 









	ARTICLE XV  CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	 63










	
  

	
15.1

	
CHOICE OF LAW

	

63










	
  

	
15.2

	
CONSENT TO JURISDICTION

	

63










	
  

	
15.3

	
WAIVER OF JURY TRIAL; CONSEQUENTIAL DAMAGES

	

63


















  





iii











  














	
SCHEDULES


	  	  
	
Commitment Schedule

	  
	  	  
	
Pricing Schedule

	  
	  	  	  	  	  
	
Schedule 1

	  	
-

	  	
Subsidiaries


	  	  	  	  	  
	
Schedule 2

	  	
-

	  	
Indebtedness


	  	  	  	  	  
	
Schedule 3

	  	
-

	  	
Liens


	  	  	  	  	  
	
Schedule 4

	  	
-

	  	
Affiliate Transactions













	
EXHIBITS


	  	  	  	  	  
	
Exhibit A

	  	
-

	  	
Form of Borrower’s Counsels’ Opinions


	  	  	  	  	  
	
Exhibit B

	  	
-

	  	
Form of Compliance Certificate


	  	  	  	  	  
	
Exhibit C

	  	
-

	  	
Form of Assignment and Assumption Agreement


	  	  	  	  	  
	
Exhibit D

	  	
-

	  	
Form of Loan/Credit Related Money Transfer Instruction


	  	  	  	  	  
	
Exhibit E

	  	
-

	  	
Form of Promissory Note (if requested)


	  	  	  	  	  
	
Exhibit F

	  	
-

	  	
Form of Joinder Agreement





















  





iv











  








CREDIT AGREEMENT







This Credit Agreement, dated as of April 1, 2008, is among Enogex LLC, a Delaware limited liability company, the Lenders, Wachovia Bank, National Association, a national banking association, as Administrative Agent, and The Royal Bank of Scotland plc, as Syndication Agent.







PRELIMINARY STATEMENTS







WHEREAS, the Borrower has requested that the Lenders make available to it a revolving credit facility in the aggregate initial amount of $250 million for the purposes set forth herein; and


 


WHEREAS, the Lenders have agreed to provide the requested revolving credit facility to the Borrower on the terms, and subject to the conditions, set forth herein.


 


NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:


 


ARTICLE I







DEFINITIONS







1.1       Certain Defined Terms.  As used in this Agreement:







“Accounting Changes” is defined in Section 9.8 hereof.







“Advance” means a borrowing hereunder, (i) made by some or all of the Lenders on the same Borrowing Date, or (ii) converted or continued by the Lenders on the same date of conversion or continuation, consisting, in either case, of the aggregate amount of the several Loans of the same Type and, in the case of Eurodollar Loans, for the same Interest Period.  The term “Advance” shall include Swing Line Loans unless otherwise expressly provided and shall include term loans outstanding on and after the Loan Conversion Date (if any).







“Affiliate” of any Person means any other Person directly or indirectly controlling, controlled by or under common control with such Person.  A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of stock, by contract or otherwise.







“Agent” means Wachovia in its capacity as contractual representative of the Lenders pursuant to Article X, and not in its individual capacity as a Lender, and any successor Agent appointed pursuant to Article X.







“Aggregate Commitment” means the aggregate of the Commitments of all the Lenders, as it may be increased or reduced from time to time pursuant to the terms hereof.  The initial Aggregate Commitment is Two Hundred Fifty Million and 00/100 Dollars ($250,000,000).







“Aggregate Outstanding Credit Exposure” means, at any time, the aggregate of the Outstanding Credit Exposure of all the Lenders.






  





  











  








“Agreement” means this Credit Agreement, as it may be amended, restated, supplemented or otherwise modified and as in effect from time to time.







“Agreement Accounting Principles” means GAAP applied in a manner consistent with that used in preparing the financial statements referred to in Section 5.4, as modified in accordance with Section 9.8.







“Alternate Base Rate” means, for any day, a fluctuating rate of interest per annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum of the Federal Funds Effective Rate for such day and one half of one percent (0.5%) per annum.







“Amended Form S-1” means Amendment No. 6 to Form S-1 filed by the Borrower with the SEC on March [__], 2008 (together with such further amendments thereto as shall not be materially adverse to the Agent and the Lenders).







“Applicable Fee Rate” means, with respect to the Facility Fee and the Utilization Fee at any time, the percentage rate per annum which is applicable at such time with respect to each such fee as set forth in the Pricing Schedule.







“Applicable Margin” means, with respect to Advances of any Type at any time, the percentage rate per annum which is applicable at such time with respect to Advances of such Type as set forth in the Pricing Schedule.







“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.







“Arranger” means each of (i) Wachovia Capital Markets LLC and (ii) RBS Securities Corporation d/b/a RBS Greenwich Capital, and their respective successors, in each case in its capacity as a Joint Lead Arranger and Joint Book Runner.







“Article” means an article of this Agreement unless another document is specifically referenced.







“Assignment and Assumption Agreement” means an assignment agreement in the form of Exhibit C hereto.







“Authorized Officer” means any of the president, chief financial officer, treasurer or the controller of the Borrower or such other representative of the Borrower as may be designated by any one of the foregoing with the consent of the Agent.







“Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time.


 


“Borrower” means Enogex LLC, a Delaware limited liability company, and its permitted successors and assigns (including, without limitation, a debtor in possession on its behalf).







“Borrowing Date” means a date on which an Advance is made hereunder.







“Borrowing Notice” is defined in Section 2.8.







“Business Day” means (i) with respect to any borrowing, payment or rate selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on which (a) banks generally are open in Charlotte,






  





2











  








North Carolina and New York, New York for the conduct of substantially all of their commercial lending activities, (b) interbank wire transfers can be made on the Fedwire system and (c) dealings in United States dollars are carried on in the London interbank market and (ii) for all other purposes (including, without limitation, any borrowing or payment of Floating Rate Advances), a day (other than a Saturday or Sunday) on which banks generally are open in Charlotte, North Carolina for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system.







“Capital Stock” means (a) in the case of a corporation, all classes of capital stock of such corporation, (b) in the case of a partnership, partnership interests (whether general or limited), (c) in the case of a limited liability company, membership interests and (d) any other interest or participation that confers on a Person similar rights with respect to the issuing Person.


 


“Capitalized Lease” of a Person means any lease of Property by such Person as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement Accounting Principles.







“Capitalized Lease Obligations” of a Person means the amount of the obligations of such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such Person prepared in accordance with Agreement Accounting Principles.







“Change in Control” means that, as of any date, OGE Energy Corp. and its Affiliates fail to (a) directly or indirectly own greater than 50% of the Voting Stock of the Borrower in the aggregate and (b) have the power to exercise a controlling influence over the management and policies of the Borrower.  It is hereby acknowledged and agreed that the consummation of the IPO and the other IPO Transactions in accordance with the terms of the Amended Form S-1 shall not be deemed a “Change of Control” hereunder.


 


“Closing Date” means the date hereof.







“Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time, and any rule or regulation issued thereunder.







“Co-Documentation Agent” means each of JPMorgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd., and Union Bank of California, in its capacity as Co-Documentation Agent hereunder.







“Collateral Shortfall Amount” is defined in Section 8.1.







“Commercial Operation Date” means the date on which a Qualified Project is substantially complete and commercially operable.


 


“Commitment” means, for each Lender, including, without limitation, the LC Issuer, such Lender’s obligation prior to the Revolving Credit Termination Date to make Revolving Loans to, and participate in Swing Line Loans and Facility LCs issued upon the application of, the Borrower in an aggregate amount not exceeding the amount set forth on the Commitment Schedule opposite such Lender’s name, as such obligations may be modified as a result of any assignment that has become effective pursuant to Section 12.3 or as otherwise modified from time to time pursuant to the terms hereof; it being acknowledged that the Commitments of the Lenders shall be deemed terminated on the earliest to occur of the Revolving Credit Termination Date, the Facility Termination Date and the Loan Conversion Date.







“Commitment Schedule” means the Schedule attached hereto identifying each Lender’s Commitment as such Commitments may be modified from time to time in accordance with the terms






  





3











  








hereof whether or not such Schedule is actually modified or replaced from time to time to reflect such changes in Commitments.







“Consolidated EBITDA” means, as of any date of determination for the four consecutive fiscal quarter period ending on such date, without duplication, with respect to the Borrower and its consolidated Subsidiaries (a) Consolidated Net Income for such period plus (b) without duplication, the sum of the following to the extent deducted in calculating Consolidated Net Income for such period:  (i) Consolidated Interest Expense for such period, (ii) tax expense (including, without limitation, any federal, state, local and foreign income and similar taxes) of the Borrower and its Subsidiaries for such period, (iii) depreciation and amortization expense of the Borrower and its Subsidiaries for such period, (iv) amortization or write-off of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness (including the Indebtedness hereunder) of the Borrower and its Subsidiaries for such period, (v) amortization of intangibles and organization costs of the Borrower and its Subsidiaries for such period, (vi) any non-recurring non-cash expenses or losses of the Borrower and its Subsidiaries, including, in any event, non-cash asset write-downs and unrealized losses in connection with Swap Agreements, for such period, (vii) Transaction Costs incurred by the Borrower and its Subsidiaries during such period in an aggregate amount (during all such periods) not to exceed $50,000,000 and (viii) any non-recurring cash losses during such period minus (c) the sum of the following (i) any non-recurring cash or non-recurring non-cash gains during such period; and (ii) any unrealized gains in connection with Swap Agreements for such period.  Additionally, for purposes of calculating Consolidated EBITDA for any period, if during such period the Borrower or any Subsidiary acquired (or sold) any Person (or any interest in any Person) or all or substantially all of the assets of any Person or a division, line of business or other business unit of another Person, the Consolidated EBITDA attributable to such assets or an amount equal to the percentage of ownership of the Borrower or such Subsidiary, as the case may be, in such Person times the Consolidated EBITDA of such Person for such period determined on a pro forma basis shall be included (or excluded, as applicable) as Consolidated EBITDA for such period as if such acquisition (or sale) occurred on the first day of such period.  Further, in connection with any Qualified Project, Consolidated EBITDA, as used in determining the Consolidated Leverage Ratio, may be modified so as to include Qualified Material Project EBITDA Adjustments as provided in Section 6.16.2.  Notwithstanding the foregoing, it is agreed that Consolidated EBITDA shall not include Excluded EBITDA.  For purposes of calculating Consolidated EBITDA for periods ending on or prior to March 31, 2009, such calculation shall be made by reference to the operations of Enogex Inc. for such periods prior to the formation of the Borrower which are included in such calculation period, as such calculations shall be adjusted to exclude the operations of OGE Energy Resources Inc. on a pro forma basis consistent with the methodology set forth in the Amended Form S-1.


 


“Consolidated Funded Indebtedness” means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis, the sum of the following (without duplication):  (a) all Indebtedness, including, without limitation, Capitalized Lease Obligations and Off Balance Sheet Indebtedness which is classified as “long-term indebtedness” on the consolidated balance sheet of the Borrower and its Subsidiaries prepared as of such date in accordance with GAAP and any current maturities and other principal amount in respect of such Indebtedness due within one year but which was classified as “long-term indebtedness” at the creation thereof, including, but not limited to, any applicable Consolidated Hedging Exposure; it being understood that Consolidated Hedging Exposure cannot be negative for the purposes of determining Consolidated Funded Indebtedness, (b) Indebtedness for borrowed money of the Borrower and its Subsidiaries outstanding under a revolving credit (including this Agreement) or similar agreement, notwithstanding the fact that any such borrowing is made within one year of the expiration of such agreement, (c) all drawn and owing reimbursement obligations outstanding under Letters of Credit, bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d)  without duplication, all guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (c) above of Persons other than the Borrower or any Subsidiary and (e) all






  





4











  








Indebtedness of the types referred to in clauses (a) through (c) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Borrower or a Subsidiary is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary. Notwithstanding the foregoing, it is agreed that (i) “Consolidated Funded Indebtedness” shall not include the obligations of the Borrower or its Subsidiaries under any Hybrid Securities or Equity Preferred Securities but only to the extent the aggregate amount of such Hybrid Securities and Equity Preferred Securities are less than or equal to 20% of total consolidated capitalization of the Borrower and its Subsidiaries, as determined in accordance with GAAP, (ii) if requested by the Borrower, “Consolidated Funded Indebtedness” may be reduced dollar for dollar by cash on the balance sheet that was received from a permitted sale hereunder if the Borrower has already identified a future permitted acquisition but such exclusion shall only be effective for the fiscal quarter end in which such proceeds were received; provided that the Borrower shall provide such information regarding the sales proceeds and the future acquisition as reasonably requested by the Agent, (iii) for the purpose of determining “Consolidated Funded Indebtedness,” any particular Indebtedness will be excluded if and to the extent that the necessary funds for the payment, redemption or satisfaction of that Indebtedness (including, to the extent applicable, any associated prepayment penalties, fees or payments and such other amounts required in connection therewith) have been deposited with the proper depositary in trust and (iv) Consolidated Funded Indebtedness shall not include Excluded Indebtedness.







“Consolidated Hedging Exposure” means, at any time with respect to all applicable Swap Agreements to which the Borrower and its Subsidiaries are counterparties, the aggregate consolidated net exposure of the Borrower and the Subsidiaries under all such agreements on a marked to market basis in accordance with GAAP.







“Consolidated Interest Expense” means, for any period with respect to the Borrower and its Subsidiaries on a consolidated basis, all interest (including the interest component, if any, of any Capitalized Lease, the Facility Fee, the Utilization Fee, the Term Loan Margin and the LC fronting fees) paid or accrued during such period in accordance with GAAP.


 


“Consolidated Leverage Ratio” shall mean, as of the last day of any fiscal quarter of the Borrower, for the Borrower and its Subsidiaries on a consolidated basis, the ratio of (a) Consolidated Funded Indebtedness on such date to (b) Consolidated EBITDA for the four quarter period ending on such date.







“Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, the net income of the Borrower and its Subsidiaries (excluding extraordinary gains and extraordinary losses) for that period, as determined in accordance with GAAP.







“Consolidated Subsidiary” means, for any Person, at any date any Subsidiary or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of such date; unless otherwise specified “Consolidated Subsidiary” means a Consolidated Subsidiary of the Borrower.







“Consolidated Tangible Net Assets” means, as of any date of determination, the total amount of consolidated assets of the Borrower and its Subsidiaries (other than Excluded Subsidiaries) minus: (a) all current liabilities (excluding (i) any current liabilities that by their terms are extendable or renewable at the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed and (ii) current maturities of long-term debt) and (b) the value (net of any applicable reserves and accumulated amortization) of all goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth, or on a pro forma basis would be set forth, on the consolidated balance sheet of the






  





5











  








Borrower and its Subsidiaries (other than Excluded Subsidiaries) for the most recently completed fiscal quarter or year, as applicable, prepared in accordance with GAAP.







“Controlled Group” means all members of a controlled group of corporations or other business entities and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code.







“Conversion/Continuation Notice” is defined in Section 2.9.







“Credit Extension” means the making of an Advance or the issuance of a Facility LC hereunder.







“Credit Extension Date” means the Borrowing Date for an Advance or the issuance date for a Facility LC.







“Debt Rating” means the long-term senior unsecured, non-credit enhanced debt rating of the Borrower by S&P, Moody’s, and/or Fitch, as applicable.


 


“Default” means an event described in Article VII.







“Defaulting Lender” means, at any time, any Lender that, at such time (a) has failed to make a Loan required pursuant to the term of this Agreement , (b) has failed to pay to the Agent or any Lender an amount owed by such Lender pursuant to the terms of this Agreement within one Business Day of the date when due, unless the subject of a good faith dispute or (c) has been deemed insolvent by a court of competent jurisdiction or has become subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or similar official.


 


“Designated Person” and “Designated Persons” are defined in Section 4.1.3.


 


“Dollar” and “$” means dollars in the lawful currency of the United States of America.







“Environmental Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions relating to (i) the protection of the environment, (ii) the effect of the environment on human health, (iii) emissions, discharges or releases of pollutants, contaminants, hazardous substances or wastes into surface water, ground water or land, or (iv) the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, hazardous substances or wastes or the clean-up or other remediation thereof.







“Equity Preferred Securities” means any securities, however denominated, (i) issued by the Borrower or any Consolidated Subsidiary of the Borrower, (ii) that are not, or the underlying securities, if any, of which are not, subject to mandatory redemption or maturity prior to 91 days after the Specified Date, and (iii) the terms of which permit the deferral of interest or distributions thereon to a date occurring after the 91st day after the Specified Date.







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







“Eurodollar Advance” means an Advance which, except as otherwise provided in Section 2.11, bears interest at the applicable Eurodollar Rate.






  





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“Eurodollar Base Rate” means, with respect to a Eurodollar Advance for the relevant Interest Period, (a) the rate per annum appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on such page of such Service, as determined by the Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, and having a maturity equal to such Interest Period; and (b) if the rate specified in clause (a) of this definition does not so appear on Reuters Screen LIBOR01 Page (or any successor or substitute page or any such successor to or substitute for such Service), the applicable Eurodollar Base Rate for the relevant Interest Period shall instead be the rate determined by the Agent to be the rate at which Wachovia or one of its affiliate banks offers to place deposits in Dollars with first class banks in the London interbank market at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, in the amount of  $5,000,000, and having a maturity equal to such Interest Period.







“Eurodollar Loan” means a Loan which, except as otherwise provided in Section 2.11, bears interest at the applicable Eurodollar Rate.







“Eurodollar Rate” means, with respect to a Eurodollar Advance for the relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable to such Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to such Interest Period, plus (ii) the Applicable Margin, plus (iii) from and after the Loan Conversion Date, the Term Loan Margin.







“Excluded EBITDA” means any portion of Consolidated EBITDA attributable to an Excluded Subsidiary.







“Excluded Indebtedness” means Non-Recourse Indebtedness of any Excluded Subsidiary.







“Excluded Subsidiary” means any future Subsidiary formed or acquired by the Borrower that is designated by the Borrower as an “Excluded Subsidiary” in accordance with Section 9.17 as long as (i) such Excluded Subsidiary has no Indebtedness that is recourse to the Borrower or any Non-Excluded Subsidiary and (ii) any Indebtedness for borrowed money incurred by such Excluded Subsidiary is used solely to acquire, construct, develop or operate assets and related businesses; provided that the aggregate amount of assets owned by all Excluded Subsidiaries cannot exceed 15% of the total consolidated assets of the Borrower and its Subsidiaries, as determined by the most recent balance sheet delivered by the Borrower pursuant to Section 6.1.







“Excluded Taxes” means, in the case of each Lender or applicable Lending Installation and the Agent, taxes imposed on its overall net income, franchise taxes (imposed in lieu of net income taxes) and branch profits taxes imposed on it (i) by the jurisdiction under the laws of which such Lender or the Agent is incorporated or organized or any political combination or subdivision or taxing authority thereof, (ii) by the jurisdiction in which the Agent’s or such Lender’s principal executive office or such Lender’s applicable Lending Installation is located or (iii) as a result of a present or former connection between such Lender or the Agent and the jurisdiction of the governmental body imposing such tax other than a connection arising in whole or in part from such Lender or the Agent having executed, delivered or performed its obligations or having received a payment or enforced its rights under this Agreement or any other Loan Document in such jurisdiction.







“Exhibit” refers to an exhibit to this Agreement, unless another document is specifically referenced.






  





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“Facility LC” is defined in Section 2.20.1







“Facility LC Application” is defined in Section 2.20.3







“Facility LC Collateral Account” is defined in Section 2.20.11







“Facility Fee” is defined in Section 2.5.1.







“Facility Termination Date” means the Revolving Credit Termination Date, provided that if the Borrower has given notice to the Agent pursuant to Section 2.1 to convert the Loans to a term loan, the Facility Termination Date shall mean the one-year anniversary of the Revolving Credit Termination Date.







“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations at approximately 11:00 a.m. (Charlotte, North Carolina time) on such day on such transactions received by the Agent from three Federal funds brokers of recognized standing selected by the Agent in its sole discretion.







“Fee Letters” is defined in Section 10.13 hereof.







“Fee Payment Date” means the tenth (10th) day following the last day of March, June, September and December and the Facility Termination Date.







“Fitch” means Fitch Ratings and any successor thereto.







“Floating Rate” means, for any day, a rate per annum equal to (i) the Alternate Base Rate for such day plus (ii) the Applicable Margin plus (iii) from and after the Loan Conversion Date, the Term Loan Margin.







“Floating Rate Advance” means an Advance which, except as otherwise provided in Section 2.11, bears interest at the Floating Rate.







“Floating Rate Loan” means a Loan which, except as otherwise provided in Section 2.11, bears interest at the Floating Rate.







“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.







“GAAP” means generally accepted accounting principles in effect from time to time.







“Hybrid Equity Securities” means any securities issued by the Borrower, any Subsidiary or a financing vehicle of the Borrower or any Subsidiary that (i) are classified as possessing a minimum of “intermediate equity content” by S&P, Basket C equity credit by Moody’s or 50% equity credit by Fitch at the time of issuance thereof and (ii) require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to the date that is 91 days after the Specified Date.






  





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“Indebtedness” of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all indebtedness of such Person for the deferred purchase price of property or services purchased (excluding current accounts payable and trade payables incurred in the ordinary course of business), (iii) all obligations created or arising under any conditional sale or other title retention agreement with respect to property acquired, (iv) all obligations under Capitalized Leases in accordance with Agreement Accounting Principles, (v) all drawn and owing reimbursement obligations outstanding under Letters of Credit, bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (vi) unless otherwise cash collateralized, Consolidated Hedging Exposure, (vii) indebtedness of the type described in clauses (i) through (vi) above secured by any Lien on property or assets of such Person, whether or not assumed (but in any event not exceeding the fair market value of the property or asset), (vii) all direct guarantees of Indebtedness referred to in clauses (i)-(vi) above of another Person, (viii) all amounts payable in connection with mandatory redemptions or repurchases of Capital Stock (other than Hybrid Securities and Equity Preferred Securities) and (ix) all Off Balance Sheet Indebtedness of such Person; provided that Indebtedness shall not include any indebtedness arising from the application of either Financial Interpretation Nos. 45 and 46 of Financial Accounting Standards Board or Issue No. 01-08 of the Emerging Issues Task Force. For the purpose of determining “Indebtedness,” any particular Indebtedness will be excluded if and to the extent that the necessary funds for the payment, redemption or satisfaction of that Indebtedness (including, to the extent applicable, any associated prepayment penalties, fees or payments and such other amounts required in connection therewith) have been deposited with the proper depositary in trust.







“Interest Period” means, with respect to a Eurodollar Advance, a period of one, two, three or six months (or nine or twelve months if agreed to by each of the Lenders and the Borrower), commencing on a Business Day selected by the Borrower pursuant to this Agreement.  Such Interest Period shall end on but exclude the day which corresponds numerically to such date one, two, three or six months or nine or twelve months, if agreed; provided, however, that if there is no such numerically corresponding day in such next, second, third or sixth succeeding month (or ninth or twelfth month succeeding month, if agreed), such Interest Period shall end on the last Business Day of such next, second, third or sixth succeeding month (or ninth or twelfth month succeeding month, if agreed).  If an Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next succeeding Business Day; provided, however, that if said next succeeding Business Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day.







“IPO” means the initial public offering of the limited partnership units of the MLP on terms consistent with the Amended Form S-1.







“IPO Transactions” means (a) the amendment and restatement of the limited liability company agreement of the Borrower, (b) the transfers by OGE Energy Corp. (and its Subsidiaries) of a portion of its managing and non-managing membership interest of the Borrower held by OGE Energy Corp. (and its Subsidiaries) as of the Closing Date, (c) the execution of amendments and restatements of the Marketing and Administrative Services Agreement and the Omnibus Agreement and (d) the consummation of the IPO, in each case, on terms (and in the case of agreements referred to herein, in forms) substantially similar to those set forth in the Amended Form S-1.







“LC Fee” is defined in Section 2.20.4.







“LC Issuers” means (i) Wachovia (or any subsidiary or affiliate of Wachovia designated by Wachovia) in its separate capacity as an issuer of Facility LCs pursuant to Section 2.20 hereunder with respect to each Facility LC issued or deemed issued by Wachovia upon the Borrower’s request or (ii) any Lender (other than Wachovia), or any Subsidiary or Affiliate of such Lender designated by such Lender, that is requested by the Borrower and agrees to act in its separate capacity as an issuer of Facility LCs






  





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pursuant to Section 2.20 with respect to any and all Facility LCs issued by such Lender in its sole discretion upon the Borrower’s request; provided that the Borrower and such LC Issuer shall immediately inform the Agent of any such agreement.  All references contained in this Agreement and the other Loan Documents to the “LC Issuer” shall be deemed to apply equally to each of the institutions referred to in clauses (i) and (ii) of this definition in their respective capacities as issuers of any and all Facility LCs issued by each such institution.







“LC Obligations” means, at any time, the sum, without duplication, of (i) the aggregate undrawn stated amount under all Facility LCs outstanding at such time plus (ii) the aggregate unpaid amount at such time of all Reimbursement Obligations.







“LC Payment Date” is defined in Section 2.20.5.







“Lenders” means the lending institutions listed on the signature pages of this Agreement and their respective successors and assigns.  Unless otherwise specified, the term “Lenders” includes the LC Issuer and the Swing Line Lender.







“Lending Installation” means, with respect to a Lender or the Agent, the office, branch, subsidiary or affiliate of such Lender or the Agent listed on the signature pages hereof or on the administrative information sheets provided to the Agent in connection herewith or on a Schedule or otherwise selected by such Lender or the Agent pursuant to Section 2.17.







“Letter of Credit” of a Person means a letter of credit or similar instrument which is issued upon the application of such Person or upon which such Person is an account party or for which such Person is in any way liable.







“LIBOR Market Index Rate” means, for any day, the rate for 1 month U.S. dollar deposits as reported by Reuters Screen LIBOR01 Page (or any successor page) as of 11:00 a.m. (London time) for such day, provided, if such day is not a London business day, the immediately preceding London business day (or if not so reported, then as determined by Wachovia consistent with the methodology for determining Eurodollar Base Rate under similar circumstances).







“Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title retention agreement).







“Loan” means, with respect to a Lender, such Lender’s loan made pursuant to Article II (or any conversion or continuation thereof), including a Revolving Loan, a Swing Line Loan and a term loan on and after the Loan Conversion Date (if any).







“Loan Conversion Date” is defined in Section 2.1.







“Loan Documents” means this Agreement, the Facility LC Applications and all other documents, instruments, notes (including any Notes issued pursuant to Section 2.13 (if requested)) and agreements executed in connection therewith or contemplated thereby, as the same may be amended, restated or otherwise modified and in effect from time to time.







“Marketing and Administrative Services Agreement” means (i) prior to the IPO, that certain Marketing and Administrative Services Agreement, effective as of January 1, 2008, between OGE Energy Resources, Inc. and the Borrower and (ii) from and after the IPO, an amended and restated Marketing and


 






  





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Administrative Services Agreement between OGE Energy Resources, Inc. and the Borrower substantially in the form of that set forth in the Amended Form S-1, in each case, with such amendments thereto as are not materially adverse to the Agent and the Lenders.


 


“Material Adverse Effect” means a material adverse effect on (i) the business, Property, condition (financial or otherwise), operations or results of operations of the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform its obligations under the Loan Documents, or (iii) the validity or enforceability of any of the Loan Documents or the rights or remedies of the Agent, the LC Issuer or the Lenders thereunder.







“Material Indebtedness” means Indebtedness of the Borrower and/or its Subsidiaries (other than (i) Indebtedness between the Borrower and its Subsidiaries and (ii) Excluded Indebtedness) in an outstanding principal amount of $40,000,000 or more in the aggregate (or the equivalent thereof in any currency other than U.S. dollars).







“Material Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, as promulgated under the Securities Act of 1933, as amended, as such regulation is in effect on the date of this Agreement.


 


“MLP” means a master limited partnership, the shares of which will be offered pursuant to the IPO, that is organized pursuant to the MLP Partnership Agreement on terms consistent with the Amended Form S-1.


 


“MLP Partnership Agreement” means (i) prior to the IPO, the agreement of limited partnership among the general partner of the MLP and the limited partners of the MLP as in effect as of the date hereof and (ii) from and after the IPO, such limited partnership agreement of the MLP substantially in the form of that attached to the Amended Form S-1, in each case, with such amendments thereto as are not materially adverse to the Agent and the Lenders.







“Modify” and “Modification” are defined in Section 2.20.1.


 


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







“Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, which is covered by Title IV of ERISA and to which the Borrower or any member of the Controlled Group is obligated to make contributions.







“Non-Extending Lender” is defined in Section 2.21.







“Non-Excluded Subsidiary” means any Subsidiary that is not an Excluded Subsidiary.







“Non-Recourse Indebtedness” means Indebtedness of any Excluded Subsidiary as to which (a) neither the Borrower nor any Non-Excluded Subsidiary provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (b) neither the Borrower nor any Non-Excluded Subsidiary is directly or indirectly liable as a guarantor or otherwise or (c) the relevant legal documents do not provide that the lenders or other type of creditors with respect thereto will have any recourse to the stock or assets of the Borrower or any Non-Excluded Subsidiary.







“Non-U.S. Lender” is defined in Section 3.5(iv).







“Note” is defined in Section 2.13.






  





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“Obligations” means all Loans, all Reimbursement Obligations, advances, debts, liabilities and obligations owing by the Borrower to the Agent, any Lender, the LC Issuer, the Swingline Lender, any Arranger, any affiliate of the Agent, any Lender, the LC Issuer, the Swingline Lender or any Arranger, or any indemnitee under the provisions of Section 9.6 or any other provisions of the Loan Documents, in each case of any kind or nature, arising under this Agreement or any other Loan Document, whether or not evidenced by any note, guaranty or other instrument, whether or not for the payment of money, whether arising by reason of an extension of credit, loan, indemnification, or in any other manner, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising and however acquired.  The term includes, without limitation, all interest, charges, expenses, fees, attorneys’ fees and disbursements, and any other sum chargeable to the Borrower or any of its Subsidiaries under this Agreement or any other Loan Document.







“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.


 


“Off Balance Sheet Indebtedness” means, with respect to any Person, (i) any repurchase obligation or repurchase liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any sale and leaseback transactions that do not create a liability on the balance sheet of such Person, (iii) any obligations under Synthetic Leases or (iv) any obligation arising with respect to any other transaction which is the functional equivalent of borrowing but which does not constitute a liability on the balance sheet of such Person.  As used herein, “Synthetic Lease” means a lease transaction under which the parties intend that (a) the lease will be treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like property.


 


“Omnibus Agreement” means (i) prior to the IPO, that certain Omnibus Agreement, dated as of April 1, 2008 by and between OGE Energy Corp. and the Borrower and (ii) from and after the IPO, an amended and restated Omnibus Agreement among OGE Energy Corp., certain Subsidiaries and Affiliates of OGE Energy Corp. and the Borrower substantially in the form of that set forth in the Amended Form S-1, in either case, with such amendments thereto as are not materially adverse to the Agent and the Lenders.


 


“Other Taxes” is defined in Section 3.5(ii).







“Outstanding Credit Exposure” means, as to any Lender at any time, the sum of (i) the aggregate principal amount of its Revolving Loans outstanding at such time, plus (ii) an amount equal to its ratable obligation to purchase participations in the LC Obligations and Swing Line Loans at such time; provided that, on and after the occurrence of either the Loan Conversion Date or the Revolving Credit Termination Date, the “Outstanding Credit Exposure” as to any Lender shall be equal to (i) the outstanding principal amount of the Loans made by such Lender in accordance with the terms of Section 2.1 plus (ii) an amount equal to its ratable obligation to purchase participations in LC Obligations at such time.







“Parent Dividend” means the one-time recharacterization of the intercompany loan balance owing by OGE Energy Corp. to the Borrower to a dividend from the Borrower to OGE Energy Corp.; provided, that (i) the Borrower shall make no cash payments to OGE Energy Corp. in connection with such recharacterization and (ii) such intercompany loan shall be deemed extinguished and repaid to the extent of such dividend.







“Participants” is defined in Section 12.2.1.







“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).






  





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“Payment Date” means the last day of March, June, September and December and the Facility Termination Date.







“PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.







“Person” means any natural person, corporation, firm, joint venture, partnership, limited liability company, association, enterprise, trust or other entity or organization, or any government or political subdivision or any agency, department or instrumentality thereof.







“Plan” means an employee pension benefit plan, excluding any Multiemployer Plan, which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code as to which the Borrower or any member of the Controlled Group may have any liability.







“Pricing Schedule” means the Schedule identifying the Applicable Margin and Applicable Fee Rate attached hereto and identified as such.







“Prime Rate” means a rate per annum equal to the prime rate of interest announced from time to time by Wachovia or its parent (which is not necessarily the lowest rate charged to any customer), changing when and as said prime rate changes.







“Property” of a Person means any and all right, title and interest of such Person in or to property, whether real, personal, tangible, intangible, or mixed.







“Pro Rata Share” means, with respect to a Lender, a portion equal to a fraction the numerator of which is such Lender’s Commitment at such time (in each case, as adjusted from time to time in accordance with the provisions of this Agreement) and the denominator of which is the Aggregate Commitment at such time; provided that following the Revolving Credit Termination Date and/or the Loan Conversion Date, “Pro Rata Share” shall mean, with respect to any Lender, a fraction the numerator of which is such Lender’s Outstanding Credit Exposure at such time and the denominator of which is the Aggregate Outstanding Credit Exposure at such time.







“Purchasers” is defined in Section 12.3.1.







“Qualified Project” means the construction or expansion of any capital project of the Borrower or any of its Subsidiaries, the aggregate actual or budgeted capital cost of which (in each case, including capital costs expended by the Borrower or any such Subsidiaries prior to the acquisition or construction of such project) exceeds $20,000,000.


 


“Qualified Project EBITDA Adjustments” shall mean, with respect to each Qualified Project:


 


(a)           prior to the Commercial Operation Date of a Qualified Project (but including the fiscal quarter in which such Commercial Operation Date occurs), a percentage (based on the then-current completion percentage of such Qualified Project) of an amount to be approved by the Agent (such approval not to be unreasonably withheld or delayed) as the projected Consolidated EBITDA of the Borrower and its Subsidiaries attributable to such Qualified Project for the first 12-month period following the scheduled Commercial Operation Date of such Qualified Project (such amount to be determined based on customer contracts relating to such Qualified Project, the creditworthiness of the other parties to such contracts, and projected revenues from such contracts, capital costs and expenses, scheduled Commercial Operation Date, oil and gas reserve and production estimates, commodity price assumptions and other reasonable factors deemed appropriate by the Agent), which may, at the Borrower’s option, be added to actual Consolidated 






  





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EBITDA for the Borrower and its Subsidiaries for the fiscal quarter in which construction of such Qualified Project commences and for each fiscal quarter thereafter until the Commercial Operation Date of such Qualified Project (including the fiscal quarter in which such Commercial Operation Date occurs, but net of any actual Consolidated EBITDA of the Borrower and its Subsidiaries attributable to such Qualified Project following such Commercial Operation Date); provided that if the actual Commercial Operation Date does not occur by the scheduled Commercial Operation Date, then the foregoing amount shall be reduced, for quarters ending after the scheduled Commercial Operation Date to (but excluding) the first full quarter after its actual Commercial Operation Date, by the following percentage amounts depending on the period of delay (based on the period of actual delay or then-estimated delay, whichever is longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but not more than 180 days, 25%, (iii) longer than 180 days but not more than 270 days, 50%, (iv) longer than 270 days but not more than 365 days, 75% and (v) longer than 365 days, 100%; and


 


(b)           thereafter, actual Consolidated EBITDA of the Borrower and its Subsidiaries attributable to such Qualified Project for each full fiscal quarter after the Commercial Operation Date, plus the amount approved by the Agent pursuant to Part (a) above as the projected Consolidated EBITDA of Borrower and its Subsidiaries attributable to such Qualified Project for the fiscal quarters constituting the balance of the four full fiscal quarter period following such Commercial Operation Date; provided, in the event the actual Consolidated EBITDA of the Borrower and its Subsidiaries attributable to such Qualified Project for any full fiscal quarter after the Commercial Operation Date shall materially differ from the projected Consolidated EBITDA approved by the Agent pursuant to Part (a) above for such fiscal quarter, the projected Consolidated EBITDA of Borrower and its Subsidiaries attributable to such Qualified Project for any remaining fiscal quarters included in the foregoing calculation shall be redetermined in the same manner as set forth in clause (a) above, such amount to be approved by the Agent (such approval not to be unreasonably withheld or delayed), which may, at the Borrower’s option, be added to actual Consolidated EBITDA for the Borrower and its Subsidiaries for such fiscal quarters.


 


Notwithstanding the foregoing:


 


(A)           no such additions shall be allowed with respect to any Qualified Project unless:


 


(1)           not later than 30 days prior to the delivery of any certificate required by the terms and provisions of Section 6.1.3 to the extent Qualified Project EBITDA Adjustments are requested be made to Consolidated EBITDA in determining compliance with Section 6.16, the Borrower shall have delivered to the Agent (y) written pro forma projections of Consolidated EBITDA of the Borrower and its Subsidiaries attributable to such Qualified Project and (z) a certificate of the Borrower certifying that all written information provided to the Agent for purposes of approving such pro forma projections (including, without limitation, information relating to customer contracts relating to such Qualified Project, the creditworthiness of the other parties to such contracts, and projected revenues from such contracts, capital costs and expenses, scheduled Commercial Operation Date, oil and gas reserve and production estimates, commodity price assumptions) was prepared in good faith based upon assumptions that were reasonable at the time they were made; and


 


(2)           prior to the date such certificate is required to be delivered, the Agent shall have approved (such approval not to be unreasonably withheld) such projections and shall have received such other information and documentation as the Agent may reasonably request, all in form and substance satisfactory to the Agent, and


 


(B)           the aggregate amount of all Qualified Project EBITDA Adjustments during any period shall be limited to 20% of the total actual Consolidated EBITDA of the Borrower and its Subsidiaries for such period (which total actual Consolidated EBITDA shall be determined without including any Qualified Project EBITDA Adjustments).


 






  





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“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.


 


“Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by banks for the purpose of purchasing or carrying margin stocks applicable to member banks of the Federal Reserve System.







“Regulation X” means Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by foreign lenders for the purpose of purchasing or carrying margin stock (as defined therein).







“Reimbursement Obligations” means, at any time, the aggregate of all obligations of the Borrower then outstanding under Section 2.20 to reimburse the LC Issuer for amounts paid by the LC Issuer in respect of any one or more drawings under Facility LCs.







“Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section, with respect to a Plan subject to Title IV of ERISA, excluding, however, such events as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event; provided, however, that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.







“Required Lenders” means Lenders in the aggregate having greater than fifty percent (50%) of the Aggregate Commitment or, if either the Revolving Credit Termination Date or the Loan Conversion Date has occurred, Lenders holding, in the aggregate, greater than fifty percent (50%) of the Aggregate Outstanding Credit Exposure.







“Reserve Requirement” means, with respect to an Interest Period, the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D on Eurocurrency liabilities.







“Restricted Payments” means, with respect to any Person, (a) any dividend or other distribution, direct or indirect, on account of any shares (or equivalent) of any class of Capital Stock of such Person, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares (or equivalent) of any class of Capital Stock of any such Person, now or hereafter outstanding, (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Capital Stock of such Person, now or hereafter outstanding, and (d) the payment by such Person of any management, advisory or consulting fee to any other Person who is directly or indirectly a significant partner, shareholder, owner or executive officer of such Person; provided that  this clause (d) shall not include the payment, in the ordinary course, of any brokers, finders or similar fees as determined appropriate by their respective governing bodies in their reasonable discretion.


 


“Revolving Credit Termination Date” means the earlier of (a) April 1, 2013, as it may be extended pursuant to Section 2.21 and (b) the date of termination in whole of the Aggregate Commitment pursuant to Section 2.5.3 hereof or the Commitments pursuant to Section 8.1 hereof.


 






  





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“Revolving Loan” means, with respect to a Lender, such Lender’s loan made pursuant to its commitment to lend set forth in Section 2.1 (or any conversion or continuation thereof).


 


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







“Sanctioned Country” means a country subject to a sanctions program identified on the list maintained by OFAC and available at http://www.ustreas.gov/offices/enforcement/ofac/, or as otherwise published from time to time.







“Sanctioned Person” means (i) a Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC available at http://www.ustreas.gov/offices/enforcement/ofac/, or as otherwise published from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC.







“Schedule” refers to a specific schedule to this Agreement, unless another document is specifically referenced.







“Section” means a numbered section of this Agreement, unless another document is specifically referenced.







“Significant Acquisition” means, during any twelve-month period, one or more acquisitions by the Borrower or any of its Subsidiaries (other than an Excluded Subsidiary) of assets, equity interests, operating lines or divisions of any other Person (whether by way of asset acquisition, equity purchase, tender offer, merger, consolidation, amalgamation or otherwise) in which the total consideration in connection therewith, cash and non-cash (including assumption of debt and liabilities and any deferred or contingent consideration, such as purchase price adjustments, earnout payments and similar payments (in each case, as valued at the reasonable estimated actual aggregate consideration)), exceeds $25,000,000.







“Single Employer Plan” means a Plan maintained by the Borrower or any member of the Controlled Group for employees of the Borrower or any member of the Controlled Group.







“Specified Date” means the date which is the later of the Facility Termination Date and date of repayment in full of the Obligations (other than contingent indemnity obligations not then due and payable).







“Subsidiary” means, as to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person and which corporation or other entity is consolidated on the books and records of such Person in accordance with GAAP; unless otherwise specified, “Subsidiary” means a direct or indirect Subsidiary of the Borrower.







“Substantial Portion” means, with respect to the Property of the Borrower and its Subsidiaries, Property which represents more than 25% of the consolidated assets of the Borrower and its Subsidiaries or property which is responsible for more than 25% of the consolidated net income of the Borrower and its Subsidiaries, in each case, as would be shown in the consolidated financial statements of the Borrower and its Subsidiaries as at the end of the four fiscal quarter period ending with the fiscal quarter immediately prior to the fiscal quarter in which such determination is made (or if financial statements






  





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have not been delivered hereunder for that fiscal quarter which ends such four fiscal quarter period, then the financial statements delivered hereunder for the quarter ending immediately prior to that quarter).







“Swap Agreements” means any agreement with respect to any swap, forward, future or other derivative transaction or option or similar agreement entered into by the Borrower or any of its Subsidiaries in order to provide protection to the Borrower and/or its Subsidiaries against fluctuations in future interest rates, currency exchange rates or commodity prices.







“Swing Line Borrowing Notice” is defined in Section 2.23.2.







“Swing Line Lender” means Wachovia or such other Lender which may succeed to its rights and obligations as Swing Line Lender pursuant to the terms of this Agreement.







“Swing Line Limit” means a maximum principal amount of $25,000,000 at any one time outstanding.







“Swing Line Loan” means a Loan made available to the Borrower by the Swing Line Lender pursuant to Section 2.23.







“Swing Line Rate” means, for any day as selected by the Borrower, either (a) the sum of (i) the LIBOR Market Index Rate for such day plus (ii) the Applicable Margin with respect to Eurodollar Advances or (b) the Floating Rate.







“Syndication Agent” means The Royal Bank of Scotland plc, in its capacity as Syndication Agent hereunder.







“Taxes” means any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings, and any and all liabilities with respect to the foregoing, but excluding Excluded Taxes and Other Taxes.







“Term Loan Margin” means, with respect to any term loans outstanding on and after the Loan Conversion Date (if any), a percentage rate per annum equal to 0.125%.







“Transaction Costs” means all fees, costs and expenses incurred or payable by the Borrower or any Subsidiary in connection with (i) the negotiation, execution and consummation of this Agreement and the other Loan Documents (including, without limitation, the commitment letters and all fees payable on the Closing Date pursuant to the Fee Letters), (ii) the reorganization of Enogex Inc. into the Borrower and the transfer of OGE Energy Resources Inc. from the Borrower to OGE Energy Corp. (or an Affiliate thereof) and (iii) the IPO Transactions.







“Transferee” is defined in Section 12.4.







“Type” means, with respect to any Advance, its nature as a Floating Rate Advance or a Eurodollar Advance and with respect to any Loan, its nature as a Floating Rate Loan or a Eurodollar Loan.







“Unfunded Liabilities” means the amount (if any) by which the present value of all vested and unvested accrued benefits under each Single Employer Plan subject to Title IV of ERISA exceeds the fair market value of all such Plan’s assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan for which a valuation report is available, using actuarial assumptions for funding purposes as set forth in such report.






  





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“Unmatured Default” means an event which but for the lapse of time or the giving of notice, or both, would constitute a Default.







“Utilization Fee” is defined in Section 2.5.2.







“Voting Stock” means all classes of the Capital Stock (or other voting interests) of such Person then outstanding and normally entitled to vote in the election of directors or other governing body of such Person. For clarification, “Voting Stock,” as used with respect to the Borrower, shall mean the Class A Membership Interests of the Borrower and shall exclude the Class B Membership Interests of the Borrower (as such terms are defined in the Borrower’s Amended and Restated Limited Liability Company Agreement as in effect as of the date hereof).


 


“Wachovia” means Wachovia Bank, National Association, a national banking association with its principal office in Charlotte, North Carolina, in its individual capacity, and its successors.







The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms.












ARTICLE II







THE CREDITS







2.1       Commitment; Conversion to Term Loan.  From and including the date of this Agreement and prior to the Revolving Credit Termination Date, upon the satisfaction of the conditions precedent set forth in Section 4.1 and 4.2, as applicable, each Lender severally agrees, on the terms and conditions set forth in this Agreement, to (i) make Revolving Loans to the Borrower from time to time and (ii) participate in Facility LCs and Swing Line Loans issued or made upon the request of the Borrower, in each case in an amount not to exceed in the aggregate at any one time outstanding of its Commitment; provided that at no time shall the Aggregate Outstanding Credit Exposure hereunder exceed the Aggregate Commitment.  Subject to the terms of this Agreement, the Borrower may borrow, repay and reborrow at any time prior to the Revolving Credit Termination Date.  The commitment of each Lender to make any further Advances or further extensions of credit hereunder shall expire on the Revolving Credit Termination Date applicable to it.  The LC Issuer will issue Facility LCs hereunder on the terms and conditions set forth in Section 2.20.  If the Borrower so elects by delivery of a written notice to the Agent at least three (3), but not more than thirty (30), Business Days prior to the date of the then current Revolving Credit Termination Date, then on such Revolving Credit Termination Date (the “Loan Conversion Date”), (i) the Borrower’s option to borrow additional Loans and request additional Facility LCs shall terminate, (ii) the Commitments shall be terminated and (iii) the then outstanding aggregate principal amount of the Loans shall be converted to a term loan which shall, in the case of each Lender, be in the aggregate amount of such Lender’s outstanding Loans on such date, and which shall be due and payable in full, together with accrued interest and all other Obligations, on the first anniversary of the Loan Conversion Date, with any prepayment thereof to be made subject to Section 2.7 and Section 3.4; provided, that no such conversion shall occur if a Default or Unmatured Default has occurred and is continuing either on the date of delivery of such notice or on the Loan Conversion Date.  Amounts repaid or prepaid on or after the Loan Conversion Date may not be reborrowed.  If a term loan conversion has not previously been elected or completed in accordance with the terms hereof, then on the Revolving Credit Termination Date then in effect, the Commitments shall be terminated and all of the Loans and other Obligations shall be due and payable in full.  For the avoidance of doubt, it is hereby agreed that the Borrower shall not have the option to convert the Loans of any Non-Extending Lender to a term loan on






  





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the Revolving Commitment Termination Date for such Non-Extending Lender (to the extent such Revolving Commitment Termination Date has been extended for any other Lender) and shall be required to repay such Loans in accordance with Section 2.2.







2.2       Required Payments; Termination.  Any outstanding Advances and all other unpaid Obligations shall be paid in full by the Borrower on the Facility Termination Date.  Notwithstanding the termination of this Agreement on the Facility Termination Date, until all of the Obligations (other than contingent indemnity obligations) shall have been fully paid and satisfied and all financing arrangements among the Borrower and the Lenders hereunder and under the other Loan Documents shall have been terminated, all of the rights and remedies under this Agreement and the other Loan Documents shall survive.  In addition, the Borrower shall make all payments required under Section 2.21 to each Lender that does not consent to the extension of the Revolving Credit Termination Date.







2.3       Ratable Loans.  Each Advance hereunder (other than any Swing Line Loan) shall consist of Loans made from the several Lenders ratably in proportion to the ratio that their respective Commitments bear to the Aggregate Commitment.







2.4       Types of Advances.  The Advances (other than any Swing Line Loan) may be Floating Rate Advances or Eurodollar Advances, or a combination thereof, selected by the Borrower in accordance with Sections 2.8 and 2.9.  The Borrower may request Swing Line Loans in accordance with Section 2.23.







2.5       Facility Fee; Utilization Fee; Reductions in Aggregate Commitment.







2.5.1           Facility Fee.  The Borrower agrees to pay to the Agent for the account of each Lender a Facility Fee (the “Facility Fee”) at a per annum rate equal to the Applicable Fee Rate on such Lender’s Commitment (whether used or unused) from the date hereof to and including the Facility Termination Date, payable quarterly in arrears on each Fee Payment Date (and, if applicable, the Specified Date); provided that, if any Lender continues to have Loans outstanding hereunder after the termination of its Commitment or the occurrence of the Revolving Credit Termination Date (including, without limitation, during any period when Loans may be outstanding but new Loans may not be borrowed hereunder), then the Facility Fee shall continue to accrue on the aggregate principal amount of the Loans owed to such Lender until the date on which such Loans are repaid in full.







2.5.2           Utilization Fee.  For any period (including after the Loan Conversion Date) during which the Aggregate Outstanding Credit Exposure of all the Lenders hereunder exceeds fifty percent (50%) of the Aggregate Commitment hereunder (which, after the Commitments have been terminated, shall be based on the Aggregate Commitment immediately prior to such termination) then in effect on such date, the Borrower will pay to the Agent for the ratable benefit of the Lenders a utilization fee (the “Utilization Fee”) at a per annum rate equal to the Applicable Fee Rate on the average daily Aggregate Outstanding Credit Exposure during such period.  The Utilization Fee shall be payable quarterly in arrears on each Fee Payment Date and on the Specified Date.







2.5.3           Reductions in Aggregate Commitment.  The Borrower may permanently reduce the Aggregate Commitment in whole, or in part, ratably among the Lenders in integral multiples of $5,000,000, upon at least two (2) Business Days’ written notice to the Agent, which notice shall specify the amount of any such reduction; provided, however, that the amount of the Aggregate Commitment may not be reduced below the aggregate principal amount of the outstanding Advances, after taking into account any prepayments to be made on or before such date.  If the Aggregate Commitment is reduced to zero, the Revolving Credit Termination Date shall have been deemed to occur.






  





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2.6       Minimum Amount of Each Advance.  Each Eurodollar Advance shall be in the minimum amount of $1,000,000 (and in multiples of $1,000,000 if in excess thereof), and each Floating Rate Advance (other than Swing Line Loans (which are subject to Section 2.23) or an Advance to repay Swing Line Loans) shall be in the minimum amount of $1,000,000 (and in multiples of $1,000,000 if in excess thereof); provided, however, that any Floating Rate Advance may be in the amount of the unused Aggregate Commitment.







2.7       Optional Principal Payments.  The Borrower may from time to time pay, without penalty or premium, all outstanding Floating Rate Advances or any portion thereof in a minimum aggregate amount of $1,000,000 or any integral multiple of $1,000,000 in excess thereof (other than in the case of Swing Line Loans) on any Business Day upon notice to the Agent by no later than 11:00 a.m. (Charlotte, North Carolina time) on the date of such prepayment.  The Borrower may at any time pay, without penalty or premium, all outstanding Swing Line Loans or any portion thereof in a minimum amount of $100,000 and increments of $100,000 in excess thereof on any Business Day upon notice to the Agent and the Swing Line Lender by 11:00 a.m. (Charlotte, North Carolina time) on the date of such repayment.  The Borrower may from time to time pay, subject to the payment of any funding indemnification amounts required by Section 3.4 but without penalty or premium, all outstanding Eurodollar Advances, or any portion thereof in a minimum aggregate amount of $1,000,000 or any integral multiple of $1,000,000 in excess thereof upon three (3) Business Days’ prior notice to the Agent. Revolving Loans and Swing Line Loans which are prepaid may, subject to the other terms and conditions of this Agreement, be reborrowed.







2.8       Method of Selecting Types and Interest Periods for New Advances (other than Swing Line Loans).  The Borrower shall select the Type of Advance (other than any Swing Line Loan which is subject to Section 2.23) and, in the case of each Eurodollar Advance, the Interest Period applicable thereto from time to time.  The Borrower shall give the Agent irrevocable notice (a “Borrowing Notice”) not later than 11:00 a.m. (Charlotte, North Carolina time) on the Borrowing Date of each Floating Rate Advance and three (3) Business Days before the Borrowing Date for each Eurodollar Advance, specifying:







2.8.1           the Borrowing Date, which shall be a Business Day, of such Advance,







2.8.2           the aggregate amount of such Advance,







2.8.3           the Type of Advance selected, and







2.8.4           in the case of each Eurodollar Advance, the Interest Period applicable thereto.







Not later than noon (Charlotte, North Carolina time) on each Borrowing Date, each Lender shall make available its Revolving Loan or Revolving Loans in funds immediately available in Charlotte, North Carolina to the Agent at its address specified pursuant to Article XIII.  The Agent will promptly make the funds so received from the Lenders available to the Borrower at the Agent’s aforesaid address.







2.9       Conversion and Continuation of Outstanding Advances.  Floating Rate Advances shall continue as Floating Rate Advances unless and until such Floating Rate Advances are converted into Eurodollar Advances pursuant to this Section 2.9 or are repaid in accordance with Section 2.7.  Each Eurodollar Advance shall continue as a Eurodollar Advance until the end of the then applicable Interest Period therefor, at which time such Eurodollar Advance shall be automatically converted into a Floating Rate Advance unless (x) such Eurodollar Advance is or was repaid in accordance with Section 2.7 or (y) the Borrower shall have given the Agent a Conversion/Continuation Notice (as defined below) requesting that, at the end of such Interest Period, such Eurodollar Advance continue as a Eurodollar Advance for the






  





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same or another Interest Period.  Subject to the terms of Section 2.6, the Borrower may elect from time to time to convert all or any part of a Floating Rate Advance into a Eurodollar Advance.  The Borrower shall give the Agent irrevocable notice (a “Conversion/Continuation Notice”) of each conversion of a Floating Rate Advance into a Eurodollar Advance or continuation of a Eurodollar Advance not later than 11:00 a.m. (Charlotte, North Carolina time) on the third Business Day prior to the date of the requested conversion or continuation, specifying:







2.9.1           the requested date, which shall be a Business Day, of such conversion or continuation,







2.9.2           the aggregate amount and Type of the Advance which is to be converted or continued, and







2.9.3           the duration of the Interest Period applicable thereto.







Notwithstanding anything to the contrary in this Agreement, no Swing Line Loan may be converted from a Floating Rate Advance to a Eurodollar Advance.







2.10     Changes in Interest Rate, etc.  Each Floating Rate Advance shall bear interest on the outstanding principal amount thereof, for each day from and including the date such Advance is made or is automatically converted from a Eurodollar Advance into a Floating Rate Advance pursuant to Section 2.9, to but excluding the date it is paid or is converted into a Eurodollar Advance pursuant to Section 2.9 hereof, at a rate per annum equal to the Floating Rate for such day.  Each Swing Line Loan shall bear interest on the outstanding principal amount thereof, for each day from and including the day such Swing Line Loan is made to but excluding the date it is paid, at a rate per annum equal to the Swing Line Rate for such day.  Changes in the rate of interest on that portion of any Advance maintained as a Floating Rate Advance or on a Swing Line Loan will take effect simultaneously with each change in the Alternate Base Rate or LIBOR Market Index Rate, as applicable.  Each Eurodollar Advance shall bear interest on the outstanding principal amount thereof from and including the first day of the Interest Period applicable thereto to (but not including) the last day of such Interest Period at the interest rate determined by the Agent as applicable to such Eurodollar Advance based upon the Borrower’s selections under Sections 2.8 and 2.9 and otherwise in accordance with the terms hereof.  No Interest Period may end after the Facility Termination Date.  The Borrower shall select Interest Periods so that it is not necessary to repay any portion of a Eurodollar Advance prior to the last day of the applicable Interest Period in order to make a mandatory prepayment required pursuant to Section 2.2.







2.11     Rates Applicable After Default.  Notwithstanding anything to the contrary contained in Section 2.8, 2.9 or 2.10, during the continuance of a Default or Unmatured Default the Required Lenders may, at their option, by notice to the Borrower, declare that no Advance may be made as, converted into or continued as a Eurodollar Advance.  During the continuance of a Default the Required Lenders may, at their option, by notice to the Borrower (which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 8.2 requiring unanimous consent of the Lenders to changes in interest rates), declare that (i) each Eurodollar Advance shall bear interest (after, as well as before judgment) for the remainder of the applicable Interest Period (and for each subsequent Interest Period during the continuance of such Default or Unmatured Default) if the Required Lenders have not prohibited Eurodollar Advances) at the rate otherwise applicable to such Interest Period plus 2% per annum, (ii) each Floating Rate Advance shall bear interest (after, as well as before judgment) at a rate per annum equal to the Floating Rate in effect from time to time plus 2% per annum, (iii) each Swing Line Loan shall bear interest (after, as well as before judgment) at a rate per annum equal to the Swing Line Rate in effect from time to time plus 2% per annum, (iv) the LC Fee shall be increased by 2% per annum and (v) all outstanding and past due fees hereunder which do not otherwise bear interest shall accrue






  





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interest (after, as well as before judgment) at a rate per annum equal to the Floating Rate in effect from time to time plus 2% per annum; provided that, during the continuance of a Default under Section 7.6 or 7.7, the interest rates set forth in clauses (i), (ii) and (iii) above and the increase in the LC Fee set forth in clause (iv) above shall be applicable to all Advances without any election or action on the part of the Agent or any Lender.







2.12     Method of Payment.  All payments of the Obligations hereunder shall be made, without setoff, deduction, or counterclaim, in immediately available funds to the Agent at the Agent’s address specified pursuant to Article XIII, or at any other Lending Installation of the Agent specified in writing by the Agent to the Borrower, by noon (Charlotte, North Carolina time) on the date when due and shall be applied ratably (except in the case of (i) Reimbursement Obligations for which the LC Issuer has not been fully indemnified by the Lenders, (ii) Swing Line Loans or (iii) as otherwise specifically required hereunder) by the Agent among the Lenders.  Each payment delivered to the Agent for the account of any Lender shall be delivered promptly by the Agent to such Lender in the same type of funds that the Agent received at its address specified pursuant to Article XIII or at any Lending Installation specified in a notice received by the Agent from such Lender.  The Agent is hereby authorized to charge the account of the Borrower maintained with Wachovia for each payment of principal, interest and fees as it becomes due hereunder.  Each reference to the Agent in this Section 2.12 shall also be deemed to refer, and shall apply equally, to (x) the LC Issuer in the case of payments required to be made by the Borrower to the LC Issuer pursuant to Section 2.20.6 and (y) the Swing Line Lender in the case of payments required to be made by the Borrower to the Swing Line Lender pursuant to Section 2.23.4.







2.13     Noteless Agreement; Evidence of Indebtedness.  (i) 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 Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.







(ii)           The Agent shall also maintain accounts in which it will record (a) the amount of each Loan made hereunder, the Type thereof and the Interest Period (in the case of a Eurodollar Advance) with respect thereto, (b) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, (c) the original stated amount of each Facility LC and the amount of LC Obligations outstanding at any time, and (d) the amount of any sum received by the Agent hereunder from the Borrower and each Lender’s share thereof.







(iii)           The entries maintained in the accounts maintained pursuant to paragraphs (i) and (ii) above shall be prima facie evidence of the existence and amounts of the Obligations therein recorded absent manifest error; provided, however, that the failure of the Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms.







(iv)           Any Lender may request that its Loans be evidenced by a promissory note, or in the case of the Swing Line Lender, promissory notes representing its Revolving Loans and Swing Line Loans, respectively, in substantially the form of Exhibit E with applicable changes for notes evidencing Swing Line Loans (a “Note”).  In such event, the Borrower shall prepare, execute and deliver to such Lender such Note payable to the order of such Lender.  Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (prior to any assignment pursuant to Section 12.3) be represented by one or more Notes payable to the order of the payee named therein, except to the extent that any such Lender subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in paragraphs (i) and (ii) above.






  





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2.14     Telephonic Notices.  The Borrower hereby authorizes the Lenders and the Agent to extend, convert or continue Advances, effect selections of Types of Advances and to transfer funds based on telephonic notices made by any person or persons the Agent or any Lender in good faith believes to be acting on behalf of the Borrower, it being understood that the foregoing authorization is specifically intended to allow Borrowing Notices, Swing Line Borrowing Notices and Conversion/Continuation Notices to be given telephonically.  The Borrower agrees to deliver promptly to the Agent a written confirmation, if such confirmation is requested by the Agent or any Lender, of each telephonic notice, signed by a Designated Person.  If the written confirmation differs in any material respect from the action taken by the Agent and the Lenders, the records of the Agent and the Lenders shall govern absent manifest error.







2.15      Interest Payment Dates; Interest and Fee Basis.  Interest accrued on each Floating Rate Advance and Swing Line Loan shall be payable in arrears on each Payment Date, commencing with the first such date to occur after the date hereof, on any date on which the Floating Rate Advance or Swing Line Loan is prepaid, whether due to acceleration or otherwise, and at maturity.  Interest accrued on that portion of the outstanding principal amount of any Floating Rate Advance converted into a Eurodollar Advance on a day other than a Payment Date shall be payable on the date of conversion.  Interest accrued on each Eurodollar Advance shall be payable on the last day of its applicable Interest Period, on any date on which the Eurodollar Advance is prepaid, whether by acceleration or otherwise, and at maturity.  Interest accrued on each Eurodollar Advance having an Interest Period longer than three months shall also be payable on the last day of each three-month interval during such Interest Period.  Interest accrued pursuant to Section 2.11 shall be payable on demand.  Interest on Eurodollar Advances, Swing Line Loans (other than Swingline Loans that are Floating Rate Advances), LC Fees and all other fees shall be calculated for actual days elapsed on the basis of a 360-day year.  Interest on Floating Rate Advances shall be calculated for actual days elapsed on the basis of a 365, or when appropriate 366, day year.  Interest shall be payable for the day an Advance is made but not for the day of any payment on the amount paid if payment is received prior to noon (Charlotte, North Carolina time) at the place of payment.  If any payment of principal of or interest on an Advance, any fees or any other amounts payable to the Agent or any Lender hereunder shall become due on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and, in the case of a principal payment, such extension of time shall be included in computing interest and fees in connection with such payment.







2.16      Notification of Advances, Interest Rates, Prepayments and Commitment Reductions; Availability of Loans.  Promptly after receipt thereof, the Agent will notify each Lender of the contents of each Aggregate Commitment reduction notice, Borrowing Notice, Swing Line Borrowing Notice, Conversion/Continuation Notice, and repayment notice received by it hereunder.  The LC Issuer shall notify the Agent promptly after the issuance of a Facility LC, and the Agent will notify each Lender of such issuance.  The Agent will notify the Borrower and each Lender of the interest rate applicable to each Eurodollar Advance promptly upon determination of such interest rate and will give the Borrower and each Lender prompt notice of each change in the Alternate Base Rate.







2.17     Lending Installations.  Subject to Section 3.7, each Lender may book its Loans and its participation in any LC Obligations and Swing Line Loans and the LC Issuer may book the Facility LCs at any Lending Installation selected by such Lender or the LC Issuer, as applicable, and may change its Lending Installation from time to time.  All terms of this Agreement shall apply to any such Lending Installation and the Loans, Facility LCs, participations in LC Obligations and Swing Line Loans and any Notes issued hereunder shall be deemed held by each Lender or the LC Issuer, as applicable, for the benefit of any such Lending Installation.  Each Lender and the LC Issuer may, by written notice to the Agent and the Borrower in accordance with Article XIII, designate replacement or additional Lending






  





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Installations through which Loans will be made by it or Facility LCs will be issued by it and for whose account Loan payments or payments with respect to Facility LCs are to be made.







2.18     Non-Receipt of Funds by the Agent.  Unless the Borrower or a Lender, as the case may be, notifies the Agent prior to the date on which it is scheduled to make payment to the Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment of principal, interest or fees to the Agent for the account of the Lenders, that it does not intend to make such payment, the Agent may assume that such payment has been made.  The Agent may, but shall not be obligated to, make the amount of such payment available to the intended recipient in reliance upon such assumption.  If such Lender or the Borrower, as the case may be, has not in fact made such payment to the Agent, the recipient of such payment shall, on demand by the Agent, repay to the Agent the amount so made available together with interest thereon in respect of each day during the period commencing on the date such amount was so made available by the Agent until the date the Agent recovers such amount at a rate per annum equal to (x) in the case of payment by a Lender, the Federal Funds Effective Rate for such day for the first three days and, thereafter, the interest rate applicable to the relevant Loan or (y) in the case of payment by the Borrower, the interest rate applicable to the relevant Loan.







2.19     Replacement of Lender.  If the Borrower is required pursuant to Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender or if any Lender’s obligation to make or continue, or to convert Floating Rate Advances into, Eurodollar Advances shall be suspended pursuant to Section 3.3 or, if and for so long as (and solely with respect to) any Lender is a Defaulting Lender (in each of the foregoing cases, such affected Lender being an “Affected Lender”), the Borrower may elect, if such amounts continue to be charged, such suspension is still effective or such Lender continues to be a Defaulting Lender, to replace such Affected Lender as a Lender party to this Agreement; provided that no Default or Unmatured Default shall have occurred and be continuing at the time of such replacement, and provided further that, concurrently with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrower and the Agent shall agree, as of such date, to purchase for cash the Loans due to the Affected Lender pursuant to an assignment substantially in the form of Exhibit C and to become a Lender for all purposes under this Agreement and to assume all obligations of the Affected Lender to be terminated as of such date and to comply with the requirements of Section 12.3 applicable to assignments, and (ii) the Borrower shall pay to such Affected Lender in same day funds on the day of such replacement (A) all interest, fees and other amounts then accrued but unpaid to such Affected Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Affected Lender under Sections 3.1, 3.2 and 3.5, and (B) other than with respect to the replacement of a Defaulting Lender, an amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under Section 3.4 had the Loans of such Affected Lender been prepaid on such date rather than sold to the replacement Lender, in each case to the extent not paid by the purchasing lender.







2.20     Facility LCs.







2.20.1           Issuance.  The LC Issuer hereby agrees, on the terms and conditions set forth in this Agreement, to issue standby and commercial letters of credit (each such letter of credit, a “Facility LC”) and to renew, extend, increase, decrease or otherwise modify each Facility LC (“Modify,” and each such action, a “Modification”), from time to time from and including the date of this Agreement and prior to the Revolving Credit Termination Date upon the request of the Borrower; provided that immediately after each such Facility LC is issued or Modified, the Aggregate Outstanding Credit Exposure shall not exceed the Aggregate Commitment.  No Facility LC shall have an expiry date later than the earlier of (x) one year after the Revolving Credit Termination Date and (y) one year after its issuance; provided that any Facility LC with a one-year tenor may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in the preceding clause (x)).  If one or more






  





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Facility LC’s are outstanding on the Revolving Commitment Termination Date, the Borrower shall pay to the LC Issuer cash, to be held by the LC Issuer, for the benefit of the Lenders, in the Facility LC Collateral Account as security for the LC Obligations in respect of subsequent drawings under all then outstanding Facility LC’s in an amount equal to 100% of the maximum aggregate amount which may be drawn under all Facility LC’s then outstanding (which cash will be invested pursuant to the requirements of Section 2.20.11), pursuant to documentation in form and substance reasonably satisfactory to the Agent. If any Facility LC contains a provision pursuant to which it is deemed to be automatically renewed unless notice of termination is given by the LC Issuer with respect to such Facility LC, the LC Issuer shall timely give notice of termination if (i) as of the close of business on the seventeenth (17th) day prior to the last day upon which the LC Issuer’s notice of termination may be given to the beneficiaries of such Facility LC, the LC Issuer has received a notice of termination from the Borrower or a notice from the Agent that the conditions to issuance of such Facility LC have not been satisfied or (ii) the renewed Facility LC would extend beyond the date referred to in clause (x) above.







2.20.2           Participations.  Upon (a) the issuance by the LC Issuer of each Facility LC in accordance with this Section 2.20 and (b) the Modification of each Facility LC increasing the face amount thereof in accordance with this Section 2.20, the LC Issuer shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably sold to each Lender, and each Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the LC Issuer, a participation in such Facility LC (and each Modification increasing the amount thereof) and the related LC Obligations in proportion to its Pro Rata Share.







2.20.3           Notice.  Subject to Section 2.20.1, the Borrower shall give the LC Issuer notice prior to 11:00 a.m. (Charlotte, North Carolina time) at least five (5) Business Days prior to the proposed date of issuance or Modification of each Facility LC, specifying the beneficiary, the proposed date of issuance (or Modification) and the expiry date of such Facility LC, and describing the proposed terms of such Facility LC and the nature of the transactions proposed to be supported thereby.  The LC Issuer shall promptly notify the Agent and shall provide the Agent with a copy of any letter of credit application or modification or other written evidence of the Facility LC as requested, and, upon issuance only, the Agent shall promptly notify each Lender, of the contents thereof and of the amount of such Lender’s participation in such Facility LC.  The issuance or Modification by the LC Issuer of any Facility LC shall, in addition to the conditions precedent set forth in Article IV (the satisfaction of which the LC Issuer shall have no duty to ascertain), be subject to the conditions precedent that such Facility LC shall be satisfactory to the LC Issuer and that the Borrower shall have executed and delivered such application agreement and/or such other instruments and agreements relating to such Facility LC as the LC Issuer shall have reasonably requested (each, a “Facility LC Application”).  In the event of any conflict between the terms of this Agreement and the terms of any Facility LC Application, the terms of this Agreement shall control.







2.20.4           LC Fees.  The Borrower shall pay to the Agent, for the account of the Lenders ratably in accordance with their respective Pro Rata Shares, (i) with respect to each standby Facility LC, a letter of credit fee at a per annum rate equal to the Applicable Margin for Eurodollar Loans in effect from time to time on the average daily undrawn stated amount under such standby Facility LC, such fee to be payable in arrears on each Fee Payment Date, and (ii) with respect to each commercial Facility LC, a letter of credit fee at a per annum rate equal to 0.20% on the average daily undrawn stated amount under such commercial Facility LC (or, with respect to a Modification of any such commercial Facility LC which increases the stated amount thereof, such increase in the stated amount), such fee to be payable upon demand on the date the LC Issuer shall make payment on such commercial Facility LC.  The Borrower shall also pay to the LC Issuer for its own account (x) a fronting fee at a per annum rate equal to 0.125% on the average daily undrawn stated amount under each standby Facility LC, such fee to be payable in arrears on each Fee Payment Date, and (y) documentary and processing charges in connection






  





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with the issuance or Modification of and draws under Facility LCs in accordance with the LC Issuer’s standard schedule for such charges as in effect from time to time.  Each fee described in this Section 2.20.4 shall constitute an “LC Fee”.







2.20.5           Administration; Reimbursement by Lenders.  Upon receipt from the beneficiary of any Facility LC of any demand for payment under such Facility LC, the LC Issuer shall notify the Agent and the Agent shall promptly notify the Borrower and each other Lender as to the amount to be paid by the LC Issuer as a result of such demand and the proposed payment date (the “LC Payment Date”).  The responsibility of the LC Issuer to the Borrower and each Lender shall be only to determine that the documents (including each demand for payment) delivered under each Facility LC in connection with such presentment shall be in conformity in all material respects with such Facility LC.  The LC Issuer shall endeavor to exercise the same care in the issuance and administration of the Facility LCs as it does with respect to letters of credit in which no participations are granted, it being understood that in the absence of any gross negligence or willful misconduct by the LC Issuer, each Lender shall be unconditionally and irrevocably liable without regard to the occurrence of any Default or any condition precedent whatsoever, to reimburse the LC Issuer on demand for (i) such Lender’s Pro Rata Share of the amount of each payment made by the LC Issuer under each Facility LC to the extent such amount is not reimbursed by the Borrower pursuant to Section 2.20.6 below, plus (ii) interest on the foregoing amount to be reimbursed by such Lender, for each day from the date of the LC Issuer’s demand for such reimbursement (or, if such demand is made after 11:00 a.m. (Charlotte, North Carolina time) on such date, from the next succeeding Business Day) to the date on which such Lender pays the amount to be reimbursed by it, at a rate of interest per annum equal to the Federal Funds Effective Rate for the first three days and, thereafter, at a rate of interest equal to the rate applicable to Floating Rate Advances.







2.20.6           Reimbursement by Borrower.  The Borrower shall be irrevocably and unconditionally obligated to reimburse the LC Issuer on or before the applicable LC Payment Date for any amounts to be paid by the LC Issuer upon any drawing under any Facility LC, without presentment, demand, protest or other formalities of any kind; provided that neither the Borrower nor any Lender shall hereby be precluded from asserting any claim for direct (but not consequential) damages suffered by the Borrower or such Lender to the extent, but only to the extent, caused by (i) the willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under any Facility LC issued by it complied with the terms of such Facility LC or (ii) the LC Issuer’s failure to pay under any Facility LC issued by it after the presentation to it of a request strictly complying with the terms and conditions of such Facility LC.  All such amounts paid by the LC Issuer and remaining unpaid by the Borrower shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the rate applicable to Floating Rate Advances, including any increase thereof pursuant to Section 2.11, from and after the applicable LC Payment Date.  The LC Issuer will pay to each Lender ratably in accordance with its Pro Rata Share all amounts received by it from the Borrower for application in payment, in whole or in part, of the Reimbursement Obligation in respect of any Facility LC issued by the LC Issuer, but only to the extent such Lender has made payment to the LC Issuer in respect of such Facility LC pursuant to Section 2.20.5.  Subject to the terms and conditions of this Agreement (including, without limitation, the submission of a Borrowing Notice in compliance with Section 2.8 and the satisfaction of the applicable conditions precedent set forth in Article IV), the Borrower may request an Advance hereunder for the purpose of satisfying any Reimbursement Obligation.







2.20.7           Obligations Absolute.  The Borrower’s obligations under this Section 2.20 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrower may have or have had against the LC Issuer, any Lender or any beneficiary of a Facility LC.  The Borrower further agrees with the LC Issuer and the Lenders that the LC Issuer and the Lenders shall not be responsible for, and the Borrower’s Reimbursement Obligation in respect of any Facility LC shall not be affected by, among other things, the






  





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validity or genuineness of documents or of any endorsements thereon, even if such documents should in fact prove to be in any or all respects invalid, fraudulent or forged, or any dispute between or among the Borrower, any of its Affiliates, the beneficiary of any Facility LC or any financing institution or other party to whom any Facility LC may be transferred or any claims or defenses whatsoever of the Borrower or of any of its Affiliates against the beneficiary of any Facility LC or any such transferee.  The LC Issuer shall not 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 Facility LC.  The Borrower agrees that any action taken or omitted by the LC Issuer or any Lender under or in connection with each Facility LC and the related drafts and documents, if done without gross negligence or willful misconduct, shall be binding upon the Borrower and shall not put the LC Issuer or any Lender under any liability to the Borrower.  Nothing in this Section 2.20.7 is intended to limit the right of the Borrower to make a claim against the LC Issuer for damages as contemplated by the proviso to the first sentence of Section 2.20.6.







2.20.8           Actions of LC Issuer.  The LC Issuer shall be entitled to rely, and shall be fully protected in relying, upon any Facility LC, draft, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by the LC Issuer.  In the absence of (x) willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under any Facility LC complied with the terms of such Facility LC or (y) the LC Issuer’s failure to pay under any Facility LC after the presentation to it of a request strictly complying with the terms and conditions of such Facility LC, the LC Issuer shall be fully (i) justified in failing or refusing to take any action under this Agreement unless it shall first have received such advice or concurrence of the Required Lenders as it reasonably deems appropriate or it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action, and (ii) protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding upon the Lenders and any future holders of a participation in any Facility LC.







2.20.9           Indemnification.  The Borrower hereby agrees to indemnify and hold harmless each Lender, the LC Issuer and the Agent, and their respective directors, officers, agents and employees from and against any and all claims and damages, losses, liabilities, costs or expenses which such Lender, the LC Issuer or the Agent may incur (or which may be claimed against such Lender, the LC Issuer or the Agent by any Person whatsoever) by reason of or in connection with the issuance, execution and delivery or transfer of or payment or failure to pay under any Facility LC or any actual or proposed use of any Facility LC, including, without limitation, any claims, damages, losses, liabilities, costs or expenses which the LC Issuer may incur by reason of or on account of the LC Issuer issuing any Facility LC which specifies that the term “Beneficiary” included therein includes any successor by operation of law of the named Beneficiary, but which Facility LC does not require that any drawing by any such successor Beneficiary be accompanied by a copy of a legal document, satisfactory to the LC Issuer, evidencing the appointment of such successor Beneficiary; provided that the Borrower shall not be required to indemnify any Lender, the LC Issuer or the Agent for any claims, damages, losses, liabilities, costs or expenses to the extent, but only to the extent, caused by (x) the willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under any Facility LC complied with the terms of such Facility LC, (y) the LC Issuer’s failure to pay under any Facility LC after the presentation to it of a request strictly complying with the terms and conditions of such Facility LC, or (z) the failure of any Lender to fulfill or comply with its obligations to the LC Issuer hereunder.







2.20.10         Lenders’ Indemnification.  Each Lender shall, ratably in accordance with its Pro Rata Share (determined at the time such indemnity is sought), indemnify the LC Issuer, its affiliates






  





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and their respective directors, officers, agents and employees (to the extent not reimbursed by the Borrower) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees’ gross negligence or willful misconduct or the LC Issuer’s failure to pay under any Facility LC after the presentation to it of a request strictly complying with the terms and conditions of the Facility LC) that any such indemnitees may suffer or incur in connection with this Section 2.20 or any action taken or omitted by such indemnitees hereunder.







2.20.11         Facility LC Collateral Account.  The Borrower agrees that it will, upon the request of the Agent or the Required Lenders and until the final expiration date of any Facility LC and thereafter as long as any amount is payable to the LC Issuer or the Lenders in respect of any Facility LC, maintain a special collateral account pursuant to arrangements reasonably satisfactory to the Agent (the “Facility LC Collateral Account”) at the Agent’s office at the address specified pursuant to Article XIII, in the name of such Borrower but under the sole dominion and control of the Agent, for the benefit of the Lenders and in which such Borrower shall have no interest other than as set forth in Section 2.20.1 and Section 8.1.  The Borrower hereby pledges, assigns and grants to the Agent, on behalf of and for the ratable benefit of the Lenders (including the LC Issuer), a security interest in all of the Borrower’s right, title and interest in and to all funds which may from time to time be on deposit in the Facility LC Collateral Account to secure the prompt and complete payment and performance of the Obligations.  The Agent will invest any funds on deposit from time to time in the Facility LC Collateral Account in certificates of deposit of Wachovia, or of any other Lender selected by the Agent, having a maturity not exceeding thirty (30) days.  Nothing in this Section 2.20.11 shall either obligate the Agent to require the Borrower to deposit any funds in the Facility LC Collateral Account or limit the right of the Agent to release any funds held in the Facility LC Collateral Account in each case other than as required by Section 2.20.1 or Section 8.1.







2.20.12         Rights as a Lender.  In its capacity as a Lender, the LC Issuer shall have the same rights and obligations as any other Lender.







2.21     Extension of Revolving Credit Termination Date.  No earlier than sixty (60) days and no later than thirty (30) days prior to each anniversary of the Closing Date, the Borrower shall have the option to request an extension of the Revolving Credit Termination Date for an additional one-year period.  Any election by a Lender to extend its Commitment will be at such Lender’s sole discretion.  Each Lender shall, by notice to the Agent given not later than the date (the “Notice Date”) that is 15 days prior to the applicable anniversary of the Closing Date, advise the Agent whether or not such Lender agrees to such extension (and each Lender that determines not to so extend its Revolving Credit Termination Date (a “Non-Extending Lender”) shall notify the Agent of such fact promptly after such determination (but in any event no later than the Notice Date) and any Lender that does not so advise the Agent on or before the Notice Date shall be deemed to be a Non-Extending Lender.  Subject to the Agent’s receipt of written consents to such extension from at least the Required Lenders on or prior to the Notice Date, and so long as no Default or Unmatured Default has occurred and is continuing, the Revolving Credit Termination Date shall be extended for an additional one-year period for each consenting Lender; provided that each Non-Extending Lender shall be required only to complete its Commitment up to the previously effective Revolving Credit Termination Date (without giving effect to such extension).  All Obligations and other amounts payable hereunder to such Non-Extending Lender shall become due and payable by the Borrower on the previously effective Revolving Credit Termination Date (without giving effect to such extension) and the Aggregate Commitment shall be reduced by the total Commitments of all Non-Extending Lenders expiring on such previously effective Revolving Credit Termination Date (without giving effect to such extension) unless one or more lenders (including other Lenders) shall have agreed to assume or increase a Commitment hereunder.  Each Non-Extending Lender shall be required to maintain






  





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 its original Commitment up to the previously effective Revolving Credit Termination Date (without giving effect to such extension) that such Non-Extending Lender had previously agreed upon.







The Borrower shall have the right on or before 45 days after the applicable anniversary of the Closing Date to replace each Non-Extending Lender with one or more institutions (each, an “Additional Commitment Lender”) (a) that are existing Lenders (and, if any such Additional Commitment Lender is already a Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such date) or (b) that are not existing Lenders; provided that any such institution (i) must be acceptable to the Administrative Agent (which approval shall not be unreasonably withheld or delayed), (ii) must meet the requirements set forth in Section 12.3.1 and (iii) must become a Lender for all purposes under this Agreement by execution and delivery of an appropriate joinder agreement in a manner acceptable to the Borrower and the Administrative Agent.







2.22      Increase of Aggregate Commitment.







2.22.1              At any time prior to the Revolving Credit Termination Date, the Borrower shall have the ability, in consultation with the Agent (and without the consent of any non-increasing Lender), to request increases in the Aggregate Commitment; provided that (A) no Lender shall have any obligation to increase its Commitment, (B) the Borrower shall only be permitted to request such an increase on five (5) separate occasions, (C) each such requested increase shall be in a minimum principal amount of $50,000,000 or, if less, the remaining amount permitted pursuant to clause (D) below, (D) in no event shall the aggregate amount of all such increases exceed $250,000,000, (E) no Default or Unmatured Default shall have occurred and be continuing or would result from the proposed increase and (F) the Borrower shall have obtained all necessary corporate authorizations and governmental approvals in order to effect such increase.







2.22.2              The Agent shall promptly give notice of such requested increase to the Lenders.  Each Lender shall notify the Agent within ten (10) Business Days (or such longer period of time which may be agreed upon by the Agent and the Borrower and communicated to the Lenders) from the date of delivery of such notice to the Lenders whether or not it agrees to increase its Commitment and, if so, by what amount.  Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment.  The Agent shall notify the Borrower of the Lenders’ responses to each request made hereunder.  The Borrower may also invite additional Purchasers which meet the requirements set forth in Section 12.3.1 to become Lenders pursuant to a joinder agreement in the form attached hereto as Exhibit F.







2.22.3              The Aggregate Outstanding Credit Exposure will be reallocated on the effective date of such increase among the Lenders in accordance with their revised Pro Rata Shares (and the Lenders agree to make all payments and adjustments necessary to effect the reallocation and the Borrower shall pay any and all costs required pursuant to Section 3.4 in connection with such reallocation as if such reallocation were a repayment).







2.23      Swing Line Loans.







2.23.1              Amount of Swing Line Loans.  Upon the satisfaction of the conditions precedent set forth in Section 4.2 and, if such Swing Line Loan is to be made on the date of the initial Advance hereunder, the satisfaction of the conditions precedent set forth in Section 4.1 as well, from and including the date of this Agreement and prior to the Revolving Credit Termination Date, the Swing Line Lender may, in its sole discretion and on the terms and conditions set forth in this Agreement, make Swing Line Loans to the Borrower from time to time in an aggregate principal amount not to exceed the Swing Line Limit, provided that Swing Line Loans may be made even if the aggregate principal amount






  





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 of Swing Line Loans outstanding at any time, when added to the aggregate principal amount of Revolving Loans made by the Swing Line Lender in its capacity as a Lender at such time and its LC Obligations at such time, would exceed the Swing Line Lender’s own Commitment as a Lender at such time and provided further that at no time shall (a) the Aggregate Outstanding Credit Exposure at any time exceed the Aggregate Commitment or (b) the sum of (i) the Swing Line Lender’s Pro Rata Share of the Swing Line Loans, plus (ii) the outstanding Revolving Loans made by the Swing Line Lender pursuant to Section 2.1, plus (iii) an amount equal to the Swing Line Lender’s ratable obligation to purchase participations in the LC Obligations at such time, exceed the Swing Line Lender’s Commitment at such time.  Subject to the terms of this Agreement, the Borrower may borrow, repay and reborrow Swing Line Loans at any time prior to the Revolving Credit Termination Date.  Subject to the terms and conditions of this Agreement (including, without limitation, the submission of a Borrowing Notice in compliance with Section 2.8 and the satisfaction of the applicable conditions precedent set forth in Article IV), the Borrower may request an Advance (other than a Swing Line Loan) hereunder for the purpose of repaying any Swing Line Loan.







2.23.2              Borrowing Notice.  The Borrower shall deliver to the Agent and the Swing Line Lender irrevocable notice (a “Swing Line Borrowing Notice”) not later than noon (Charlotte, North Carolina time) on the Borrowing Date of each Swing Line Loan, specifying (i) the applicable Borrowing Date (which date shall be a Business Day), (ii) the aggregate amount of the requested Swing Line Loan which shall be an amount not less than $500,000 and in an integral multiple of $100,000 in excess thereof and (iii) the desired Swing Line Rate for such Swing Line Loan.  The Swing Line Lender shall give prompt notice, but in any event not later than 1:00 p.m. (Charlotte, North Carolina time) to the Borrower and the Agent in the event that the Swing Line Lender declines to make such Swing Line Loan (a “Decline Notice”);  it being understood that the failure of the Swing Line Lender to provide a Decline Notice in a timely manner shall be deemed the consent of the Swing Line Lender to provide such Swing Line Loan in accordance with the terms of this Agreement.  The Swing Line Loans shall bear interest at the Swing Line Rate set forth in the Swing Line Borrowing Notice.







2.23.3              Making of Swing Line Loans.  Promptly after receipt of a Swing Line Borrowing Notice, provided that the Agent has not received a Decline Notice from the Swing Line Lender in respect thereof, the Agent shall notify each Lender by fax, or other similar form of transmission, of the requested Swing Line Loan.  Not later than 2:00 p.m. (Charlotte, North Carolina time) on the applicable Borrowing Date, the Swing Line Lender shall make available the Swing Line Loan, in funds immediately available in Charlotte, North Carolina, to the Agent at its address specified pursuant to Article XIII.  The Agent will promptly make the funds so received from the Swing Line Lender available to the Borrower on the Borrowing Date at the Agent’s aforesaid address.







2.23.4              Repayment of Swing Line Loans.  Each Swing Line Loan shall be paid in full by the Borrower on or before the fourteenth (14th) day after the Borrowing Date for such Swing Line Loan; provided, that such payment shall not be made by the proceeds of any other Swing Line Loans.  In addition, the Swing Line Lender (i) may at any time in its sole discretion with respect to any outstanding Swing Line Loan, or (ii) if not previously repaid by the Borrower, shall on the fourteenth (14th) day after the Borrowing Date of any Swing Line Loan, require each Lender (including the Swing Line Lender) to make a Revolving Loan in the amount of such Lender’s Pro Rata Share of such Swing Line Loan (including, without limitation and to the extent available, any interest accrued and unpaid thereon), for the purpose of repaying such Swing Line Loan.  Not later than noon (Charlotte, North Carolina time) on the date of any notice received pursuant to this Section 2.23.4, each Lender shall make available its required Revolving Loan, in funds immediately available in Charlotte, North Carolina to the Agent at its address specified pursuant to Article XIII.  Revolving Loans made pursuant to this Section 2.23.4 shall initially be Floating Rate Loans and thereafter may be continued as Floating Rate Loans or converted into Eurodollar Loans in the manner provided in Section 2.9 and subject to the other conditions and limitations set forth






  





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in this Article II.  Unless a Lender shall have notified the Swing Line Lender, prior to its making any Swing Line Loan, that any applicable condition precedent set forth in Sections 4.1 or 4.2 had not then been satisfied, such Lender’s obligation to make Revolving Loans pursuant to this Section 2.23.4 to repay Swing Line Loans shall be unconditional, continuing, irrevocable and absolute and shall not be affected by any circumstances, including, without limitation, (a) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Agent, the Swing Line Lender or any other Person, (b) the occurrence or continuance of a Default or Unmatured Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower, or (d) any other circumstances, happening or event whatsoever.  In the event that any Lender fails to make payment to the Agent of any amount due under this Section 2.23.4, the Agent shall be entitled to receive, retain and apply against such obligation the principal and interest otherwise payable to such Lender hereunder until the Agent receives such payment from such Lender or such obligation is otherwise fully satisfied.  In addition to the foregoing, if for any reason any Lender fails to make payment to the Agent of any amount due under this Section 2.23.4, such Lender shall be deemed, at the option of the Agent, to have unconditionally and irrevocably purchased from the Swing Line Lender, without recourse or warranty, an undivided interest and participation in the applicable Swing Line Loan in the amount of such Revolving Loan, and such interest and participation may be recovered from such Lender together with interest thereon at the Federal Funds Effective Rate for each day during the period commencing on the date of demand and ending on the date such amount is received.  On the Revolving Credit Termination Date, the Borrower shall repay in full the outstanding principal balance of the Swing Line Loans.












ARTICLE III







YIELD PROTECTION; TAXES







3.1        Yield Protection.  If, on or after the date of this Agreement, the adoption of any law, rule or regulation or any change in any such law, rule or regulation or in the interpretation or administration thereof by any governmental, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender or applicable Lending Installation with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency:







3.1.1              subjects any Lender or any applicable Lending Installation to any Taxes, or changes the basis of taxation of payments (other than with respect to Excluded Taxes) to any Lender in respect of its Eurodollar Loans, Facility LCs or participations therein, or







3.1.2              imposes or increases or deems applicable any reserve, assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or any applicable Lending Installation (other than reserves and assessments taken into account in determining the interest rate applicable to Eurodollar Advances), or







3.1.3              imposes any other condition the result of which is to increase the cost to any Lender or any applicable Lending Installation of making, funding or maintaining its Commitment or Eurodollar Loans or Swing Line Loans or of issuing or participating in Facility LCs or Swing Line Loans, or reduces any amount receivable by any Lender or any applicable Lending Installation in connection with its Commitment or Eurodollar Loans or Swing Line Loans or Facility LCs (including participations therein), or requires any Lender or any applicable Lending Installation to make any payment calculated by reference to the amount of Commitment or






  





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Eurodollar Loans or Swing Line Loans or Facility LCs (including participations therein) held or interest or LC Fees received by it, by an amount deemed material by such Lender,







and the result of any of the foregoing is to increase the cost to such Lender or applicable Lending Installation of making or maintaining its Eurodollar Loans, Swing Line Loans or Commitment or of issuing or participating in Facility LCs or Swing Line Loans, as applicable, or to reduce the return received by such Lender or applicable Lending Installation in connection with such Eurodollar Loans, Swing Line Loans, Commitment or issuing or participating in Facility LCs or Swing Line Loans, then, within fifteen (15) days of demand, accompanied by the written statement required by Section 3.6, by such Lender, the Borrower shall pay such Lender such additional amount or amounts as will compensate such Lender for such increased cost or reduction in amount received; provided that no such amount shall be payable with respect to any period commencing more than ninety (90) days prior to the date such Lender first notifies the Borrower of its intention to demand compensation therefor under this Section 3.1.







3.2           Changes in Capital Adequacy Regulations.  If a Lender determines the amount of capital required or expected to be maintained by such Lender, any Lending Installation of such Lender or any corporation controlling such Lender is increased as a result of a “Change” (as defined below), then, within fifteen (15) days of demand, accompanied by the written statement required by Section 3.6, by such Lender, the Borrower shall pay such Lender the amount necessary to compensate for any shortfall in the rate of return on the portion of such increased capital which such Lender determines is attributable to this Agreement, its Loans or its Commitment to make Loans and issue or participate in Facility LCs or Swing Line Loans, as applicable, hereunder (after taking into account such Lender’s policies as to capital adequacy); provided that no such amount shall be payable with respect to any period commencing more than thirty (30) days before the date such Lender first notifies the Borrower of its intention to demand compensation under this Section 3.2.  “Change” means (i) any change after the date of this Agreement in the Risk-Based Capital Guidelines or (ii) after the date of this Agreement, the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change in any such law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency given or made after the date of this Agreement.  “Risk-Based Capital Guidelines” means (i) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition rules, and (ii) the corresponding capital regulations promulgated by regulatory authorities outside the United States implementing the July 1988 report of the Basle Committee on Banking Regulation and Supervisory Practices Entitled “International Convergence of Capital Measurements and Capital Standards,” including transition rules, and any amendments to such regulations adopted prior to the date of this Agreement.







3.3        Availability of Types of Advances.  If any Lender determines that maintenance of its Eurodollar Loans at a suitable Lending Installation would violate any applicable law, rule, regulation, or directive, whether or not having the force of law, or if the Required Lenders determine that (i) deposits of a type and maturity appropriate to match fund Eurodollar Advances are not available or (ii) the interest rate applicable to Eurodollar Advances does not accurately reflect the cost of making or maintaining Eurodollar Advances, then the Agent shall suspend the availability of Eurodollar Advances and require any affected Eurodollar Advances to be repaid or converted to Floating Rate Advances on the respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law, subject to the payment of any funding indemnification amounts required by Section 3.4.







3.4       Funding Indemnification.  If any payment of a Eurodollar Advance occurs on a date which is not the last day of the applicable Interest Period, whether because of acceleration, prepayment or otherwise, or a Eurodollar Advance is not made, continued or converted on the date specified by the






  





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Borrower in a Borrowing Notice or a Conversion/Continuation Notice for any reason other than default by the Lenders, or a Eurodollar Advance is not prepaid on the date specified by the Borrower pursuant to Section 2.7 for any reason, or if a Eurodollar Advance is assigned other than on the last day of an Interest Period therefor as a result of a request by the Borrower pursuant to Section 2.19 (other than with respect to the replacement of a Defaulting Lender), the Borrower will indemnify each Lender for any loss or cost incurred by it resulting therefrom, including, without limitation, any loss or cost in liquidating or employing deposits acquired to fund or maintain such Eurodollar Advance.







3.5        Taxes.  (i) All payments by the Borrower to or for the account of any Lender or the Agent hereunder or under any Note shall be made free and clear of and without deduction for any and all Taxes.  If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder to any Lender or the Agent, (a) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 3.5) such Lender or the Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (b) the Borrower shall make such deductions, (c) the Borrower shall pay the full amount deducted to the relevant authority in accordance with applicable law and (d) the Borrower shall furnish to the Agent the original copy of a receipt evidencing payment thereof or, if a receipt cannot be obtained with reasonable efforts, such other evidence of payment as is reasonably acceptable to the Agent, in each case within thirty (30) days after such payment is made.







(ii)           In addition, the Borrower shall pay any present or future stamp or documentary taxes and any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or under any Note or Facility LC Application or from the execution or delivery of, or otherwise with respect to, this Agreement or any Note or Facility LC Application (“Other Taxes”).







(iii)           The Borrower shall indemnify the Agent and each Lender for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed on amounts payable under this Section 3.5) paid by the Agent or such Lender as a result of its Commitment, any Loans made by it hereunder, any Facility LC issued or participated in by it hereunder, or otherwise in connection with its participation in this Agreement and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto.  Payments due under this indemnification shall be made within thirty (30) days of the date the Agent or such Lender makes demand therefor pursuant to Section 3.6.







(iv)           Each Lender that is not incorporated under the laws of the United States of America or a state thereof (each a “Non-U.S. Lender”) agrees that it will, not more than ten (10) Business Days after the date on which it becomes a party to this Agreement (but in any event before a payment is due to it hereunder), (i) deliver to each of the Borrower and the Agent two duly completed copies of United States Internal Revenue Service Form W-8BEN or W-8ECI, certifying in either case that such Lender is entitled to receive payments under this Agreement without deduction or withholding of any United States federal income taxes, or (ii) in the case of a Non-U.S. Lender that is fiscally transparent, deliver to the Agent a United States Internal Revenue Form W-8IMY together with the applicable accompanying forms, W-8 or W-9, as the case may be, and certify that it is entitled to an exemption from United States withholding tax.  Each Non-U.S. Lender further undertakes to deliver to each of the Borrower and the Agent (x) renewals or additional copies of such form (or any successor form) on or before the date that such form expires or becomes obsolete, and (y) after the occurrence of any event requiring a change in the most recent forms so delivered by it, such additional forms or amendments thereto as may be reasonably requested by the Borrower or the Agent.  All forms or amendments described in the 



  





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preceding sentence shall certify that such Lender is entitled to receive payments under this Agreement without deduction or withholding of any United States federal income taxes, unless 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 which renders all such forms inapplicable or which would prevent such Lender from duly completing and delivering any such form or amendment with respect to it and such Lender advises the Borrower and the Agent that it is not capable of receiving payments without any deduction or withholding of United States federal income tax.







(v)           For any period during which a Non-U.S. Lender has failed to provide the Borrower with an appropriate form pursuant to clause (iv) above (unless such failure is due to a change in treaty, law or regulation, or any change in the interpretation or administration thereof by any governmental authority, occurring subsequent to the date on which a form originally was required to be provided), such Non-U.S. Lender shall not be entitled to gross up or indemnification under this Section 3.5 with respect to Taxes imposed by the United States; provided that, should a Non-U.S. Lender which is otherwise exempt from withholding tax become subject to Taxes because of its failure to deliver a form required under clause (iv) above, the Borrower shall take such steps as such Non-U.S. Lender shall reasonably request to assist such Non-U.S. Lender to recover such Taxes.







(vi)           Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments under this Agreement or any Note pursuant to the law of any relevant jurisdiction or any treaty shall deliver to the Borrower (with a copy to the Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate.







(vii)           If the U.S. Internal Revenue Service or any other governmental authority of the United States or any other country or any political subdivision thereof asserts a claim that the Agent or the Borrower did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered or properly completed, because such Lender failed to notify the Agent of a change in circumstances which rendered its exemption from withholding ineffective, or for any other reason), such Lender shall indemnify the Agent and the Borrower fully for all amounts paid, directly or indirectly, by the Agent or the Borrower, as the case may be, as tax, withholding therefor, or otherwise, including penalties and interest, and including taxes imposed by any jurisdiction on amounts payable to the Agent or the Borrower, as the case may be, under this subsection, together with all costs and expenses related thereto (including attorneys fees and time charges of attorneys for the Agent or the Borrower, as the case may be, which attorneys may be employees of the Agent or the Borrower, as the case may be).  The obligations of the Lenders under this Section 3.5(vii) shall survive the payment of the Obligations and termination of this Agreement.







(viii)           In the event that the Borrower makes a payment for the account of any Lender and such Lender, in its reasonable judgment, determines that it has finally and irrevocably received or been granted a credit against or release or remission for, or repayment of, any tax paid or payable by it in respect of or calculated with reference to the deduction or withholding giving rise to such payment, such Lender shall, to the extent that it determines that it can do so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to the Borrower such amount as such Lender shall, in its reasonable judgment, have determined to be attributable to such deduction or withholding and which will leave such Lender (after such payment) in no worse position than it would have been in if the Borrower had not been required 



  





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to make such deduction or withholding.  Nothing herein contained shall interfere with the right of a Lender to arrange its tax affairs in whatever manner it thinks fit or oblige any Lender to claim any tax credit or to disclose any information in relation to its tax affairs or any computations in respect thereof or require any Lender to do anything that would prejudice its ability to benefit from any other credits, relief, remissions or repayments to which it may be entitled.







3.6        Lender Statements; Survival of Indemnity.  Each Lender shall deliver a written statement of such Lender to the Borrower (with a copy to the Agent) as to the amount due, if any, under Section 3.1, 3.2, 3.4 or 3.5.  Such written statement shall set forth in reasonable detail the calculations upon which such Lender determined such amount and shall be final, conclusive and binding on the Borrower in the absence of manifest error.  Determination of amounts payable under such Sections in connection with a Eurodollar Loan shall be calculated as though each Lender funded its Eurodollar Loan through the purchase of a deposit of the type and maturity corresponding to the deposit used as a reference in determining the Eurodollar Rate applicable to such Loan, whether in fact that is the case or not.  Unless otherwise provided herein, the amount specified in the written statement of any Lender shall be payable within fifteen (15) days after demand and receipt by the Borrower of such written statement.  The obligations of the Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of the Obligations and termination of this Agreement.







3.7        Alternative Lending Installation.  To the extent reasonably possible, each Lender shall designate an alternate Lending Installation with respect to its Eurodollar Loans to reduce any liability of the Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the unavailability of Eurodollar Advances under Section 3.3, so long as such designation is not, in the reasonable judgment of such Lender, disadvantageous to such Lender.  A Lender’s designation of an alternative Lending Installation shall not affect the Borrower’s rights under Section 2.19 to replace a Lender.












ARTICLE IV







CONDITIONS PRECEDENT







4.1        Initial Credit Extension.  The effectiveness of this Agreement and the obligation of the Lenders to make the initial Credit Extension hereunder shall be subject to the satisfaction of the following conditions precedent and, if applicable, the delivery by the Borrower to the Agent sufficient copies for the Lenders of:







4.1.1           (a) Copies of the certificate of formation of the Borrower, together with all amendments, certified by the appropriate governmental officer in the State of Delaware and certified by the secretary or assistant secretary of the Borrower and (b) a certificate of good standing, certified by the appropriate governmental officer in the State of Delaware.







4.1.2           Copies, certified by the secretary or assistant secretary of the Borrower, of its limited liability company agreement and of its Board of Directors’ resolutions and of resolutions or actions of any other body authorizing the execution of the Loan Documents to which the Borrower is a party.







4.1.3           An incumbency certificate, certified by the secretary or assistant secretary of the Borrower, which shall (i) identify by name and title and bear the signatures of the Authorized Officers and any other officers of the Borrower authorized to sign the Loan Documents (together with the Authorized Officers, being collectively, the “Designated Persons” and each being a “Designated Person”) to which the Borrower is a party, upon which certificate the Agent and the



  





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 Lenders shall be entitled to rely until informed of any change in writing by the Borrower and (ii) certify as to the tax identification number and a business address of the Borrower, as well as any other information reasonably requested in writing by the Agent or any Lender prior to the Closing Date as necessary for the Agent or any Lender to verify the identity of the Borrower as required by Section 326 of the Patriot Act.







4.1.4           A certificate, signed by the chief financial officer or treasurer of the Borrower, stating that (a) as of the Closing Date, there are no material actions, suits, investigations or legal, equitable, arbitration or administrative proceedings pending or, to the best of such officer’s knowledge, threatened against the Borrower in writing which could reasonably be expected to have a Material Adverse Effect, (b) as of the Closing Date, no event or condition has occurred since December 31, 2007 that has had or could reasonably be expected to have a Material Adverse Effect, (c) all material financial statements and information delivered to the Agent and the Lenders on or before the Closing Date were prepared in good faith and, in the case of such financial statements, in accordance with GAAP and (d) immediately after giving effect to this Agreement, the other Loan Documents and all the transactions contemplated herein and therein to occur on the Closing Date, (A) no Default or Unmatured Default exists and (B) all representations and warranties contained herein and in the other Loan Documents are true and correct in all material respects on and as of the date made (except to the extent such representations and warranties expressly speak to an earlier date, in which case such representation or warranty shall have been true and correct on and as of such earlier date).







4.1.5           A written opinion of the Borrower’s counsels, in form and substance satisfactory to the Agent and addressed to the Lenders, in substantially the form of Exhibit A.







4.1.6           Any Notes requested by a Lender pursuant to Section 2.13 payable to the order of each such requesting Lender.







4.1.7           If applicable, written money transfer instructions, in substantially the form of Exhibit D, addressed to the Agent and signed by a Designated Person, together with such other related money transfer authorizations as the Agent may have reasonably requested.







4.1.8           The Agent shall have received duly executed copies of this Agreement from each party hereto.







4.1.9           As of the Closing Date, there shall be no material actions, suits, investigations or legal, equitable, arbitration or administrative proceedings pending or threatened against the Borrower which are reasonably likely to be decided adversely to the Borrower and if so decided would have a Material Adverse Effect.







4.1.10           As of the Closing Date, no event or condition shall have occurred since December 31, 2007 that has had or could be reasonably expected to have a Material Adverse Effect.







4.1.11           The aggregate amount of Commitments of all Lenders on the Closing Date shall be not less than $250,000,000.







4.1.12           Payment by the Borrower of all fees and expenses owed by it to the Lenders, the Agent and the Arrangers which are due on the Closing Date, including, without limitation, payment of the fees set forth in the Fee Letters.






  





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4.1.13           Such other documents as any Lender or its counsel may have reasonably requested.







The Agent shall promptly notify the Borrower and the Lenders of the Closing Date, and such notice shall be conclusive and binding on all parties hereto.







4.2        Each Credit Extension.  Subject to the terms and conditions of this Agreement, the Lenders shall make Credit Extensions (including the initial Credit Extension hereunder); provided that the Lenders shall not be required to make such Credit Extensions (except as set forth in Section 2.23.4 with respect to Revolving Loans for the purpose of repaying Swing Line Loans) if on the applicable Credit Extension Date:







4.2.1           There exists a Default or Unmatured Default either before or after giving effect to such Credit Extension; or







4.2.2           The representations and warranties contained in Article V are not true and correct in all material respects as of such Credit Extension Date except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct on and as of such earlier date.







Each Borrowing Notice, Swing Line Borrowing Notice or request for issuance of a Facility LC with respect to each such Credit Extension shall constitute a representation and warranty by the Borrower that the conditions contained in Sections 4.2.1 and 4.2.2 have been satisfied.  The Agent may require a duly completed compliance certificate in substantially the form of Exhibit B as a condition to making a Credit Extension.












ARTICLE V







REPRESENTATIONS AND WARRANTIES







The Borrower represents and warrants to the Lenders that:







5.1        Existence and Standing.  Each of the Borrower and its Material Subsidiaries (a) is a corporation, partnership (in the case of Subsidiaries only) or limited liability company duly and properly incorporated or organized, as the case may be, validly existing and (to the extent such concept applies to such entity) in good standing under the laws of its jurisdiction of incorporation or organization and in such other jurisdictions where the conduct of its business would require such qualification and (b) has all requisite authority to conduct its business as now conducted or proposed to be conducted, in each case, except where the failure to be so qualified or have such authority would not have and could not reasonably be expected to have a Material Adverse Effect.







5.2        Authorization and Validity.  The Borrower has the power and authority and legal right to execute and deliver the Loan Documents (as in effect on the date that this representation is made or deemed made) and to perform its obligations thereunder.  The execution and delivery by the Borrower of the Loan Documents (as in effect on the date that this representation is made or deemed made) and the performance of its obligations thereunder have been duly authorized by proper corporate or other applicable proceedings, and the Loan Documents to which the Borrower is a party constitute legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.






  





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5.3       No Conflict; Government Consent.  Neither the execution and delivery by the Borrower of the Loan Documents, nor the consummation of the transactions therein contemplated, nor compliance with the provisions thereof will (i) violate or conflict with the Borrower’s or any Material Subsidiary’s articles or certificate of incorporation, partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating or other management agreement, as the case may be, or (ii) violate (a) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Borrower or any of its Subsidiaries or (b) contravene or conflict with the provisions of any indenture, instrument or agreement to which the Borrower or any of its Subsidiaries is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien in, of or on the Property of the Borrower or a Subsidiary pursuant to the terms of any such indenture, instrument or agreement, unless such violation with respect to this clause (ii) would not have or could not reasonably be expected to have a Material Adverse Effect. No order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by the Borrower or any of its Subsidiaries, is required to be obtained by the Borrower or any of its Subsidiaries in connection with the execution and delivery of the Loan Documents, the borrowings under this Agreement, the payment and performance by the Borrower of the Obligations thereunder or the legality, validity, binding effect or enforceability of any of the Loan Documents.







5.4        Financial Statements.  The consolidated financial statements of the Borrower and its Subsidiaries delivered to the Lenders pursuant to Section 6.1.1 were prepared in accordance with GAAP in effect on the date such statements were prepared and fairly present the consolidated financial condition and operations of the Borrower and its Subsidiaries at such date and the consolidated results of their operations for the period then ended.







5.5        Taxes.  The Borrower and its Material Subsidiaries have filed all United States federal tax returns and all other material tax returns which are required to be filed and have paid all taxes due pursuant to said returns or pursuant to any assessment received by the Borrower or any of its Subsidiaries, except in respect of such taxes, if any, (i) which are not in the aggregate material or (ii) as are being contested in good faith and as to which adequate reserves have been set aside in accordance with GAAP and as to which no Lien exists (except as permitted by Section 6.12.5).  The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of any taxes or other governmental charges are adequate.







5.6        Subsidiaries.  Schedule 1 contains an accurate list of all Subsidiaries of the Borrower as of the date of this Agreement (as updated from time to time pursuant to Section 6.1.3), setting forth which Subsidiaries are Material Subsidiaries and which Subsidiaries are Excluded Subsidiaries and setting forth each Subsidiary’s respective jurisdictions of organization and the percentage of their respective capital stock or other ownership interests owned by the Borrower or other Subsidiaries.







5.7        Use of Proceeds; Margin Stock.  The proceeds of the Loans hereunder will be used solely for the purposes specified in Section 6.2. Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (as defined in Regulation U), and after applying the proceeds of each Advance, margin stock (as so defined) constitutes less than 25% of the value of those assets of the Borrower and its Subsidiaries which are subject to any limitation on sale, pledge, or other restriction hereunder.


 






  





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5.8        Compliance With Laws. The Borrower and its Subsidiaries have complied with all applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign government or any instrumentality or agency thereof having jurisdiction over the conduct of their respective businesses or the ownership of their respective Property, except for any failure to comply with any of the foregoing which could not reasonably be expected to have a Material Adverse Effect and except where the necessity of compliance therewith is being contested in good faith by appropriate proceedings.







5.9        Investment Company Act.  Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended.


 


5.10      Compliance with OFAC Rules and Regulations.  Neither the Borrower nor any of its Subsidiaries (i) is a Sanctioned Person, (ii) has more than 15% of its assets in Sanctioned Countries, or (iii) derives more than 15% of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Countries.  No part of the proceeds of any Credit Extension hereunder will be used directly or indirectly to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country.












ARTICLE VI







COVENANTS







During the term of this Agreement, unless the Lenders or the Required Lenders, as applicable, shall otherwise consent in writing:







6.1        Financial Reporting.  The Borrower will maintain, for itself and each Subsidiary, a system of accounting established and administered in accordance with GAAP, and furnish to the Agent and the Lenders:







 6.1.1           Within ninety (90) days after the close of each of its fiscal years, financial statements prepared in accordance with GAAP on a consolidated basis for itself and its Subsidiaries, including balance sheets as of the end of such period, statements of income and statements of cash flows, setting forth in comparative form figures for the preceding fiscal year, accompanied by an audit report, consistent with the requirements of the Securities and Exchange Commission, of a nationally recognized firm of independent public accountants or other independent public accountants reasonably acceptable to the Required Lenders.







 6.1.2           Within forty-five (45) days after the close of the first three quarterly periods of each of its fiscal years, financial statements prepared in accordance with GAAP (other than with regard to the absence of footnotes and  subject to changes resulting from audit and normal year-end audit adjustments to same) on a consolidated basis for itself and its Subsidiaries, including, consolidated unaudited balance sheets as at the close of each such period and consolidated unaudited statements of income and a statement of cash flows for the period from the beginning of such fiscal year to the end of such quarter, in each case setting forth in comparative form figures for the corresponding period of the preceding fiscal year, and accompanied by a certificate of the chief financial officer or treasurer of the Borrower to the effect that such quarterly financial statements fairly present in all material respects the financial condition of the Borrower and its Subsidiaries and have been prepared in accordance with GAAP






  





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(other than with regard to the absence of footnotes and  subject to changes resulting from audit and normal year-end audit adjustments to same).







6.1.3           Together with the financial statements required under Sections 6.1.1 and 6.1.2, (i) a compliance certificate in substantially the form of Exhibit B signed by an Authorized Officer (a) showing the calculations necessary to determine compliance with Section 6.16, (b) stating that no Default or Unmatured Default exists, or if any Default or Unmatured Default exists, stating the nature and status thereof and (c) updating Schedule 1 with respect to its Subsidiaries, Material Subsidiaries and Excluded Subsidiaries, if appropriate and (ii) such financial information as reasonable requested by the Agent, including, but not limited to consolidating financial statements, as is necessary to account for Excluded Indebtedness and Excluded EBITDA for purposes of determining the Consolidated Leverage Ratio.







6.1.4           If requested, within 270 days after the close of each fiscal year of the Borrower, a copy of the actuarial report showing the Unfunded Liabilities of each Single Employer Plan as of the valuation date occurring in such fiscal year, certified by an actuary enrolled under ERISA.







6.1.5           As soon as possible and in any event within ten (10) days after an Authorized Officer knows that any Reportable Event has occurred with respect to any Plan that could reasonably be expected to have a Material Adverse Effect, a statement, signed by an Authorized Officer, describing said Reportable Event and the action which the Borrower proposes to take with respect thereto.







6.1.6           From time to time such additional information regarding the financial position or business of the Borrower and its Subsidiaries as the Agent, at the request of any Lender, may reasonably request, including the support for any pro forma calculations hereunder.







6.1.7           Promptly, upon the filing thereof, copies of all registration statements (other than any registration statement on Form S-8 and any registration statement in connection with a dividend reinvestment plan, shareholder purchase plan or employee benefit plan) and reports on form 10-K, 10-Q or 8-K (or their equivalents) which the Borrower or any of its Subsidiaries files with the Securities and Exchange Commission.







6.1.8           Promptly, information regarding any change in the Borrower’s Debt Rating.







Information required to be delivered pursuant to these Sections 6.1.1, 6.1.2, and 6.1.7 shall be deemed to have been delivered on the date on which the Borrower provides notice to the Lenders that such information has been posted on the Securities and Exchange Commission website on the Internet at sec.gov/edaux/searches.htm, on the Borrower’s IntraLinks site at intralinks.com or at another website identified in such notice and accessible by the Lenders without charge; provided that (i) such notice may be included in a certificate delivered pursuant to Section 6.1.3 and such notice or certificate shall also be deemed to have been delivered upon being posted to the Borrower’s IntraLinks site or such other website and (ii) the Borrower shall deliver paper copies of the information referred to in Sections 6.1.1, 6.1.2 and 6.1.7 to any Lender which requests such delivery.







6.2       Use of Proceeds.  The Borrower will use the proceeds of the Credit Extensions solely for (a) letters of credit, (b) working capital and other general corporate purposes of the Borrower and its Subsidiaries, including, capital expenditures, permitted acquisitions, permitted investments, permitted distributions and payment of Transaction Costs.  The Borrower shall use the proceeds of the Advances in compliance with all applicable legal and regulatory requirements and any such use shall not result in a violation of any such requirements, including, without limitation, Regulations U and X, the Securities Act






  





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of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder.







6.3       Notice of Default.  The Borrower will deliver to the Agent within five (5) days after any Authorized Officer of the Borrower obtains knowledge thereof of any Default or Unmatured Default and, if such Default or Unmatured Default is then continuing, a certificate of an Authorized Officer of the Borrower setting forth the details thereof and the action which the Borrower is taking or proposes to take with respect thereto.







6.4       Maintenance of Existence.  The Borrower will preserve, renew and keep in full force and effect, and will cause each Material Subsidiary to preserve, renew and keep in full force and effect their respective corporate or other legal existence and their respective rights, privileges and franchises material to the normal conduct of their respective businesses; provided that nothing in this Section 6.4 shall prohibit (i) any transaction permitted pursuant to Section 6.10 or (ii) the termination of any right, privilege or franchise of the Borrower or any Material Subsidiary or of the corporate or other legal existence of any Material Subsidiary or the change in form of organization of the Borrower or any Material Subsidiary if the Borrower in good faith determines that such termination or change is in the best interest of the Borrower, is not materially disadvantageous to the Lenders and, in the case of a change in the form of organization of the Borrower, the Agent has received prior notice thereof and, if the Agent reasonably requests it, has received any affirmation of the Borrower’s obligations as a result of such change.







6.5       Taxes.  The Borrower will, and will cause each Material Subsidiary to, pay when due all taxes, assessments and governmental charges and levies upon it or its income, profits or Property, except those (i) which are not in the aggregate material or (ii) which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been set aside in accordance with GAAP.







6.6       Insurance.  The Borrower will, and will cause each Material Subsidiary to, maintain with financially sound and reputable insurance companies insurance on all their Property in such amounts, subject to such deductibles and self-insurance retentions, and covering such risks as is consistent with sound business practice, and the Borrower will furnish to any Lender upon request full information as to the insurance carried.







6.7       Compliance with Laws.  The Borrower will, and will cause each Subsidiary to, comply in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject including, without limitation, all Environmental Laws, except where (a) failure to so comply could not reasonably be expected to result in a Material Adverse Effect or (b) necessity of compliance therewith is being contested in good faith by appropriate proceedings.







6.8       Maintenance of Properties.  Subject to Section 6.10, the Borrower will, and will cause each Material Subsidiary to keep its Property useful and necessary in the operation of its business in good repair, working order and condition, ordinary wear and tear excepted.







6.9       Inspection; Keeping of Books and Records.  The Borrower will, and will cause each Subsidiary to, permit the Agent and the Lenders, by their respective representatives and agents, to inspect any of the Property (subject to such physical security requirements as the Borrower or the applicable Subsidiary may reasonably require), to examine and make copies of the books of accounts and other financial records of the Borrower and each Subsidiary (except to the extent that such access is restricted by law or by a bona fide non-disclosure agreement not entered into for the purpose of evading the requirements of this Section), and to discuss the affairs, finances and accounts of the Borrower and each






  





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Subsidiary with, and to be advised as to the same by, their respective officers upon reasonable notice and at such reasonable times and intervals as the Agent or any Lender may designate; provided, that absent the existence of a Default such visits and inspections shall occur no more frequently than once in any twelve month period.  The Borrower shall keep and maintain, and cause each of its Subsidiaries to keep and maintain, in all material respects, proper books of record and account in which entries shall be made of all dealings and transactions in relation to their respective businesses and activities in sufficient detail to permit the preparation of financial statements in accordance with GAAP.







6.10     Fundamental Changes.







6.10.1           The Borrower will not, and will not permit any of its Material Subsidiaries to, (a) enter into any transaction of merger or (b) consolidate, liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); provided, that as long as no Default or Unmatured Default exists and is continuing or would be caused thereby:  (i) a Person (including a Subsidiary of the Borrower) may be merged or consolidated with or into the Borrower so long as (A) the Borrower shall be the continuing or surviving entity and (B) the Borrower remains liable for its obligations under this Agreement and all the rights and remedies hereunder remain in full force and effect, (ii) a Material Subsidiary may (A) merge or consolidate with or into another Subsidiary of the Borrower or (B) merge or consolidate with or into any other Person so long as either (x) such Material Subsidiary shall be the surviving entity of such merger or consolidation or (y) upon such merger or consolidation, such other Person would become a Material Subsidiary of the Borrower and (iii) the Borrower or any Subsidiary may otherwise take such action to the extent permitted by Section 6.10.2.


 


6.10.2







(a)           The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, convey, sell, lease, transfer, or otherwise dispose of all or substantially all of the assets of the Borrower and its Subsidiaries on a consolidated basis.







(b)           The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, convey, sell, lease, transfer, or otherwise dispose of assets (including interests in any Person), businesses or operations of any Person; provided, that, subject to clause (a) above, (i) the Borrower and its Subsidiaries may enter into sales and leases of inventory in the ordinary course of business, (ii) the Borrower and its Subsidiaries may enter into leases of transportation capacity, storage capacity, and/or processing capacity in the ordinary course of business, (iii) the Borrower and its Subsidiaries may enter into conveyances, sales, leases, transfers, or other disposition of obsolete or unusable equipment in the ordinary course of its business and (iv) if no Default or Unmatured Default exists and is continuing or would be caused thereby, the Borrower and its Subsidiaries may convey sale, lease, transfer or dispose of other assets.







(c)           Notwithstanding the foregoing clauses (a) and (b), nothing herein shall be deemed to prohibit (i) the IPO Transactions or (ii) any Subsidiary from conveying, selling, leasing, transferring, or otherwise disposing of any assets to any other Subsidiary or to the Borrower.


 


6.11     Indebtedness.







6.11.1           The Borrower shall not incur any Indebtedness unless after giving effect thereto the Borrower is in compliance with the financial covenant in Section 6.16 on a pro forma basis.


 






  





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6.11.2           The Borrower will not permit its Subsidiaries (other than Excluded Subsidiaries) to create, assume or incur any Indebtedness except for the following:







(a)           Indebtedness created under the Loan Documents and Indebtedness existing on the Closing Date as set forth on Schedule 2 and extensions, renewals and replacements of any such Indebtedness in a principal amount not in excess of that outstanding as of the date hereof.


 


(b)           Indebtedness of any  Subsidiary to the Borrower or any other Subsidiary.


 


(c)           unsecured Indebtedness of a Person that becomes a Subsidiary (including by way of acquisition, merger or consolidation) after the Closing Date; provided that such Indebtedness was not incurred in contemplation of such Person becoming a Subsidiary, together with extensions, renewals and replacements of any such Indebtedness in a principal amount not in excess of that outstanding as of the date of such extension, renewal or replacement.


 


(d)           guarantees by any Subsidiary of Indebtedness of any other Subsidiary permitted hereunder.


 


(e)           Indebtedness of any Subsidiary (or any Person that will become a Subsidiary (including by way of acquisition, merger or consolidation) after the Closing Date, provided that such Indebtedness is not incurred in contemplation of such entity becoming a Subsidiary) secured by a Lien permitted pursuant to Section 6.12.1, together with extensions, renewals and replacements of any such Indebtedness in a principal amount not in excess of that outstanding as of the date of such extension, renewal or replacement.


 


(f)           Indebtedness in respect of Swap Agreements or credit support in respect thereof entered into the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets or property held or reasonably anticipated.


 


(g)           Indebtedness in respect of a receivables securitization program in an aggregate amount not to exceed at any one time outstanding (when consolidated with the aggregate amount of receivables securitization debt outstanding as permitted Section 6.12.20) 5% of Consolidated Tangible Net Assets.


 


(h)           guarantees by any Subsidiary of Indebtedness of the Borrower to the extent such Subsidiary has guaranteed the Indebtedness of the Borrower under this Agreement on terms and conditions satisfactory to the Agent.


 


(i)           Indebtedness in an aggregate amount not to exceed at any one time outstanding (when consolidated with the aggregate amount of secured debt outstanding as permitted by Section 6.12.22)) the greater of (A) $200,000,000 and (B) 15% of Consolidated Tangible Net Assets.


 


6.12     Liens.  The Borrower will not, nor will it permit any Subsidiary (other than an Excluded Subsidiary) to, create, incur, or suffer to exist any Lien in, of or on the Property of the Borrower or any of its Subsidiaries (other than Excluded Subsidiaries), except:






  





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6.12.1           any Lien on any asset securing Indebtedness, including a Capital Lease, incurred or assumed for the purpose of financing all or any part of the cost of acquiring, repairing, constructing or improving such asset; provided that such Lien attaches to such asset concurrently with or within 12 months after the acquisition thereof or the completion of the repair, construction or improvement thereof (including, without limitation, Liens in favor of the United States of America or any state thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any state thereof, or for the benefit of holders of securities issued by any such entity to finance any of the foregoing).







6.12.2           any Lien on any asset of any Person existing at the time such company is merged or consolidated with or into the Borrower or any of its Subsidiaries and not created in contemplation of such event.







6.12.3           any Lien existing on any asset prior to the acquisition thereof by the Borrower or any of its Subsidiaries and not created in contemplation of such acquisition.







6.12.4           any Lien arising out of the refinancing, extension, renewal or refunding of any debt secured by any Lien permitted by any of the foregoing clauses or Sections 6.12.14, 6.12.15 or 6.12.19; provided that such debt is not increased and is not secured by any additional assets.







6.12.5           Liens for taxes, assessments or other governmental charges or levies not yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained in accordance with GAAP.







6.12.6           statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen, and interest owners of oil and gas production and other Liens imposed by law, created in the ordinary course of business and for amounts not past due for more than 60 days or which are being contested in good faith by appropriate proceedings, properly instituted and diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained in accordance with GAAP.







6.12.7           Liens incurred or deposits made in the ordinary course of business (including, without limitation, surety bonds and appeal bonds) in connection with pension or retirement plans, workers’ compensation, unemployment insurance and other types of social security benefits or to secure the performance of tenders, bids, leases, contracts (other than for the prepayment of debt), statutory obligations and other similar obligations or arising as a result of progress payments under government contracts.







6.12.8           easements (including, without limitation, reciprocal easement agreements and utility agreements), rights of way, covenants, consents, reservations, encroachments, variations and other restrictions, charges or encumbrances (whether or not recorded) affecting the use of real property.







6.12.9           Liens with respect to judgments and attachments which do not result in a Default.







6.12.10         Liens on deposits required by any Person with whom the Borrower or any of its Subsidiaries enters into Swap Agreements or any credit support therefor, in each case, in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets or property held or reasonably anticipated.






  





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6.12.11                      Liens, including Liens imposed by Environmental Laws, arising in the ordinary course of its business that (i) do not secure Indebtedness, (ii) do not secure obligations in an aggregate amount exceeding $40,000,000 at any time, and (iii) do not in the aggregate materially detract from the value of its assets or materially impair the use thereof in the operation of its business.







6.12.12                      deposits securing liability to insurance carriers under insurance or self-insurance arrangements.







6.12.13                      Liens securing Indebtedness of a Subsidiary to the Borrower or another  Subsidiary.







6.12.14                      Liens created or assumed by a Subsidiary on any contract for the permitted sale of any product or service or any proceeds therefrom (including accounts and other receivables).







6.12.15                      Liens created by a Subsidiary on advance payment obligations by such Subsidiary to secure indebtedness incurred to finance advances for oil, gas hydrocarbon and other mineral exploration and development.







6.12.16                      Liens securing obligations, neither assumed by the Borrower or any Subsidiary nor on account of which the Borrower or any Subsidiary customarily pays interest, upon real estate or under which the Borrower or any Subsidiary has a right-of-way, easement, franchise or other servitude or of which the Borrower or any Subsidiary is the lessee of the whole thereof or any interest therein for the purpose of locating pipe lines, substations, measuring stations, tanks, pumping or delivery equipment or similar equipment.







6.12.17                      Liens arising by virtue of any statutory or common law provision relating to banker’s liens, rights of setoff or similar rights as to deposit accounts or other funds maintained with a depository institution and liens of a collecting bank arising in the ordinary course of business under Section 4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction covering only the items being collected upon.







6.12.18                      Liens granted to the Administrative Agent for the benefit of the Lenders in respect of cash collateral for the Facility LC’s.







6.12.19                      Liens existing on the Closing Date as set forth on Schedule 3.







6.12.20                      Liens arising in connection with a receivables securitization program securing Indebtedness in an aggregate amount not to exceed at any one time outstanding (when consolidated with the aggregate amount of Indebtedness outstanding incurred by Subsidiaries of the Borrower permitted in Section 6.11.2(g)), 5% of Consolidated Tangible Net Assets.







6.12.21                      Liens incurred in the ordinary course of business in connection with leases and subleases of real property owned or leased by the Borrower or any Subsidiary and not interfering with the ordinary conduct of the business of the Borrower and the Subsidiaries.







6.12.22                      other Liens securing indebtedness in an aggregate amount not to exceed at any one time outstanding (when consolidated with the aggregate amount of Indebtedness outstanding incurred by Non-Excluded Subsidiaries of the Borrower permitted in Section 6.11.2(i)), the greater of (i) $200,000,000 and (ii) 15% of Consolidated Tangible Net Assets.






  





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6.13     Affiliates.  The Borrower will not, and will not permit any Subsidiary to, directly or indirectly, enter into any transaction (including, without limitation, the purchase or sale of any Property or service) with, or make any payment or transfer to, any Affiliate (other than transactions between the Borrower and any Non-Excluded Subsidiary or between any Non-Excluded Subsidiary and another Non-Excluded Subsidiary) except upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than the Borrower or such Subsidiary would obtain in a comparable arms length transaction; provided, that this Section shall not prohibit (a) any Restricted Payment permitted under Section 6.14, (b) the provision by Borrower of credit support for Swap Agreements and other commodities contracts entered into by its Affiliates permitted hereunder, (c) intercompany loans by OGE Energy Corp. to the Borrower and its Subsidiaries, (d) payments to Affiliates under and pursuant to the Omnibus Agreement and the Marketing and Administrative Services Agreement and other agreements with substantially the same terms, (e) equity investments by the Borrower and its Subsidiaries in any such Affiliates in an amount not to exceed $200,000,000, in the aggregate, at any one time and (f) the transactions set forth on Schedule 4.


 


6.14     Restricted Payments.  The Borrower shall not, and shall not permit its Subsidiaries to, make any Restricted Payments other than the following:  (a) ratable distributions by Subsidiaries and joint ventures of the Borrower or its Subsidiaries, to the Borrower and/or to Subsidiaries of the Borrower and the other joint venturers therein, (b) ratable distributions paid only in common (non-preferential and non-redeemable) equity securities, (c) distributions in connection with stock option or other benefit plans for management and employees, (d) payment of management, marketing services, credit support and general and administrative fees and expenses in accordance with its governing documents, the Omnibus Agreement and the Marketing and Administrative Services Agreement and payment of or reimbursement for (or indemnification for) costs, fees and expenditures made or incurred for or on behalf of it or its Subsidiaries under and pursuant to the Omnibus Agreement and the Marketing and Administrative Services Agreement, (e) prior to or concurrently with the IPO, the non-cash payment by the Borrower to OGE Energy Corp. of the Parent Dividend and (f) if and to the extent that no Default then exists or would result therefrom, payment of monthly and quarterly distributions in amount not to exceed  (i) the amount by which the Borrower’s cash on hand exceeds its current and anticipated needs, including, without limitation, for operating expenses, debt service, acquisitions and a reasonable contingency reserve (as determined from time to time by the Borrower’s management in accordance with the Borrower’s operating agreement) or (ii) after the occurrence of the IPO Transactions, if greater than the amount set forth in clause (i), the aggregate amount necessary to provide the Borrower’s post-IPO managing member (currently contemplated to be Enogex Operating, LLC), or any successor thereto, taking into account such managing member’s allocable portion of any such distribution, and the MLP with any shortfall in the MLP’s Available Cash (as defined in the MLP Limited Partnership Agreement) to fund the Minimum Quarterly Distributions (as defined in the MLP Limited Partnership Agreement) to the MLP’s unitholders; it being acknowledged that the Borrower may make borrowings under this Agreement to fund any such permitted distribution.


 


6.15     Nature of Business.  The Borrower and its Subsidiaries shall not engage in any business other than such business that is substantially the same as conducted by the Borrower and its Subsidiaries as of the Closing Date and other businesses in the energy industry reasonably related thereto (including, without limitation, the gathering, fractionation, distillation, marketing, processing, purchase, sale, storage, trading, treatment, and transportation of natural gas, natural gas liquids, crude oil, and their products).


 


6.16     Consolidated Leverage Ratio.







6.16.1           Subject to Section 6.16.2 below, the Consolidated Leverage Ratio shall, as of the last day of each fiscal quarter of the Borrower, be less than or equal to 5.00 to 1.0; provided that, for the three fiscal quarter ends following any date that the Borrower and its Material Subsidiaries have consummated an acquisition that causes them to meet the definition of Significant






  





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Acquisition was met) the Consolidated Leverage Ratio, as of the last day of each such fiscal quarter, shall instead be less than or equal to 5.50 to 1.0.







6.16.2           For purposes of calculating compliance with the financial covenant set forth in Section 6.16.1, Consolidated EBITDA may include, at Borrower’s option, any Qualified Project EBITDA Adjustments as provided in the definition thereof.


 


6.17     Excluded Subsidiaries.  The Borrower shall take such action as is necessary to ensure that the aggregate assets owned by all Excluded Subsidiaries does not exceed, at any one time, 15% of consolidated assets of the Borrower and its Subsidiaries, as determined by the most recent balance sheet delivered by the Borrower pursuant to Section 6.1.












ARTICLE VII







DEFAULTS







The occurrence of any one or more of the following events shall constitute a Default:







7.1           Any representation or warranty made or deemed made by or on behalf of the Borrower under or in connection with this Agreement, any Credit Extension, or any certificate or information delivered in connection with this Agreement or any other Loan Document shall be materially false on the date as of which made.







7.2           (a) Nonpayment of principal of any Loan when due, (b) nonpayment of any Reimbursement Obligation after the same becomes due, (c) nonpayment of interest upon any Loan or any stated fees set forth herein or in the Fee Letters, in each case, within five (5) Business Days after the same become due and (d) nonpayment of other obligations under this Agreement or any of the Loan Documents within thirty (30) days after the same become due.







7.3           (a) The breach by the Borrower of any of the terms or provisions of Section 6.2, 6.3 or 6.16, (b) the breach by the Borrower of any of the terms or provisions of Section 6.1.1, 6.1.2, 6.1.3, or 6.1.8 which is not remedied within five (5) Business Days after written notice thereof is given by the Agent or a Lender to the Borrower or (c) the breach by the Borrower of any of the terms or provisions of Section 6.9, 6.10, 6.11, 6.12, 6.13, 6.14 or 6.15 after the earlier of (i) five (5) Business Days after written notice thereof is given by the Agent or a Lender to the Borrower and (ii) the date an Authorized Officer becomes aware of such Default.







7.4           The breach by the Borrower (other than a breach which constitutes a Default under another Section of this Article VII) of any of the terms or provisions of this Agreement which is not remedied within thirty (30) days after written notice thereof is given by the Agent or a Lender to the Borrower.







7.5           (a) Failure of the Borrower or any Subsidiary to pay when due (beyond the applicable grace period with respect thereto, if any) any Material Indebtedness; or (b) the Borrower or any Subsidiary shall default (after giving effect to any applicable grace period) in the observance or performance of any covenant or agreement relating to such Material Indebtedness and, as a result thereof, such Material Indebtedness is declared or becomes due or is required to be repaid or redeemed prior to its stated maturity.






  





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7.6           The Borrower or any of its Material Subsidiaries shall (i) have an order for relief entered with respect to it under the Federal bankruptcy laws as now or hereafter in effect, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any Substantial Portion of its Property, (iv) institute any proceeding seeking an order for relief under the Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, (v) take any corporate or partnership action to authorize or effect any of the foregoing actions set forth in this Section 7.6, (vi) fail to contest in good faith in a timely manner any appointment or proceeding described in Section 7.7 or (vii) fail to pay, or admit in writing its inability to pay, its debts generally as they become due.







7.7           Without the application, approval or consent of the Borrower or any of its Material Subsidiaries, a receiver, trustee, examiner, liquidator or similar official shall be appointed for the Borrower or any of its Material Subsidiaries or any Substantial Portion of its Property, or a proceeding described in Section 7.6(iv) shall be instituted against the Borrower or any of its Material Subsidiaries and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of ninety (90) consecutive days.







7.8           A judgment or other court order for the payment of money in excess of $40,000,000 shall be rendered against the Borrower or any Subsidiary and such judgment or order shall continue without being vacated, discharged, satisfied or stayed or bonded pending appeal for a period of forty-five (45) days.







7.9           The Unfunded Liabilities of all Single Employer Plans could in the aggregate reasonably be expected to result in a Material Adverse Effect or any Reportable Event shall occur in connection with any Plan that could reasonably be expected to have a Material Adverse Effect.







7.10           Any Change in Control shall occur.







7.11           The Borrower or any other member of the Controlled Group shall have been notified by the sponsor of a Multiemployer Plan that it has incurred, pursuant to Section 4201 of ERISA, withdrawal liability to such Multiemployer Plan in an amount which, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Borrower or any other member of the Controlled Group as withdrawal liability (determined as of the date of such notification), exceeds $65,000,000 or requires payments exceeding $10,000,000 per annum.







7.12           The Borrower or any other member of the Controlled Group shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title IV of ERISA, if as a result of such reorganization or termination the aggregate annual contributions of the Borrower and the other members of the Controlled Group (taken as a whole) to all Multiemployer Plans which are then in reorganization or being terminated have been or will be increased, in the aggregate, over the amounts contributed to such Multiemployer Plans for the respective plan years of such Multiemployer Plans immediately preceding the plan year in which the reorganization or termination occurs by an amount exceeding $65,000,000.







7.13           Any Loan Document shall fail to remain in full force or effect or any action shall be taken by the Borrower to assert the invalidity or unenforceability of any Loan Document.






  





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ARTICLE VIII







ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES







8.1       Acceleration/Remedies.







8.1.1           (i) If any Default described in Section 7.6 or 7.7 occurs with respect to the Borrower, the obligations of the Lenders, including the Swingline Lender, to make Loans hereunder and the obligation and power of the LC Issuer to issue Facility LCs shall automatically terminate and the Obligations shall immediately become due and payable without any election or action on the part of the Agent, the LC Issuer or any Lender, and the Borrower will be and become thereby unconditionally obligated, without any protest, notice, act or demand (all of which are expressly waived by the Borrower), to pay to the Agent for the account of the Lenders an amount in immediately available funds, which funds shall be held in the Facility LC Collateral Account, equal to the difference of (x) 100% of the amount of LC Obligations at such time less (y) the amount on deposit in the Facility LC Collateral Account at such time which is free and clear of all rights and claims of third parties (other than the Agent and the Lenders) and has not been applied against the Obligations (the “Collateral Shortfall Amount”).  If any other Default occurs, the Agent may with the consent of the Required Lenders (a) terminate or suspend the obligations of the Lenders to make Loans hereunder and the obligation and power of the LC Issuer to issue Facility LCs, or declare the Obligations to be due and payable, or both, whereupon the Obligations shall become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which the Borrower hereby expressly waives and (b) upon notice to the Borrower and in addition to the continuing right to demand payment of all amounts payable under this Agreement, make demand on the Borrower to pay (a “Funding Demand”), and the Borrower will forthwith upon such demand and without any further notice or act pay to the Agent the Collateral Shortfall Amount which funds shall be deposited in the Facility LC Collateral Account.







(ii)           If at any time while any Default is continuing with respect to which the Agent has made a Funding Demand, the Agent determines that the Collateral Shortfall Amount at such time is greater than zero, the Agent may make demand on the Borrower to pay, and the Borrower will, forthwith upon such demand and without any further notice or act, pay to the Agent the Collateral Shortfall Amount, which funds shall be deposited in the Facility LC Collateral Account.







(iii)           The Agent may at any time or from time to time after funds are deposited in the Facility LC Collateral Account, apply such funds to the payment of the Obligations.







(iv)           Except as expressly provided below, at any time while any Default is continuing, neither the Borrower nor any Person claiming on behalf of or through the Borrower shall, unless the Required Lenders shall otherwise consent, have any right to withdraw any of the funds held in the Facility LC Collateral Account.  Upon request of the Borrower, the Agent shall permit the Borrower to withdraw from the Facility LC Collateral Account, so long as no Default then exists, the balance of the Facility LC Collateral Account.  If a Default then exists, the Agent shall, upon the request of the Borrower apply the Excess Balance (as defined below) to the payment of the Obligations; provided further that if there are no Obligations (other than LC Obligations) due and payable, the Agent shall, upon request of the Borrower, release to the Borrower the Excess Balance.  As used herein, “Excess Balance” means the amount by which the balance of the Facility LC Collateral Account exceeds the amount of L/C Obligations.  In addition, after all of the Obligations have been paid in full and the Aggregate Commitment has been terminated, any






  





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funds remaining in the Facility LC Collateral Account shall be returned by the Agent to the Borrower or paid to whomever may be legally entitled thereto at such time.  Notwithstanding anything in this Agreement to the contrary, to the extent the Borrower has deposited cash in the Facility LC Collateral Account in accordance with the requirements of 2.20.1, the Borrower shall not be permitted to withdraw such amounts from the Facility LC Collateral Account until the Facility LC’s secured thereby have been cancelled and returned to the applicable LC Issuer on terms and conditions satisfactory to such LC Issuer.







(v)           If, after acceleration of the maturity of the Obligations or termination of the obligations of the Lenders to make Loans and the obligation and power of the LC Issuer to issue Facility LCs hereunder as a result of any Default (other than any Default as described in Section 7.2(a), 7.2(b), 7.6 or 7.7 with respect to the Borrower) and before any judgment or decree for the payment of the Obligations due shall have been obtained or entered, the Required Lenders (in their sole discretion) shall so direct, the Agent shall, by notice to the Borrower, rescind and annul such acceleration and/or termination.







(vi)           Each Lender has, to the extent permitted by law, a separate right of payment and shall be considered a separate “creditor” holding a separate “claim” within the meaning of Section 101(5) of the Bankruptcy Code or any other insolvency statute.







8.1.2           Notwithstanding any other provision of this Agreement, after the occurrence and during the continuance of a Default, all amounts collected or received by the Agent or any Lender on account of amounts outstanding under any of the Loan Documents shall be paid over or delivered as follows:


 


FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including without limitation reasonable attorneys’ fees) of the Agent and the Lenders in connection with enforcing the rights of the Lenders under the Loan Documents, pro rata as set forth below;


 


SECOND, to payment of any fees owed to the Agent, or any Lender, pro rata as set forth below;


 


THIRD, to the payment of all accrued interest payable to the Lenders hereunder, pro rata as set forth below;


 


FOURTH, to the payment of the outstanding principal amount of the Loans and to the payment or cash collateralization of the outstanding LC Obligations, pro rata, as set forth below;


 


FIFTH, to all other obligations which shall have become due and payable under the Loan Documents and not repaid pursuant to clauses “FIRST” through “FOURTH” above; and


 


SIXTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus.


 


In carrying out the foregoing, (a) amounts received shall be applied in the numerical order provided until exhausted prior to application to the next succeeding category; (b) each of the Lenders shall receive an amount equal to its Pro Rata Share of amounts available to be applied; and (c) to the extent that any amounts available for distribution pursuant to clause “FOURTH” above are attributable to the issued but undrawn amount of outstanding Facility LC’s, such amounts shall be held by the Agent in the Facility LC Collateral Account and applied (i) first, to reimburse the LC Issuer from time to time for any drawings under such Facility LC’s and


 






  





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(ii) then, following the expiration of all Facility LC’s, to all other obligations of the types described in clauses “FOURTH”, “FIFTH” and “SIXTH” above in the manner provided in this Section 8.1.2.


 


8.2       Amendments.  Subject to the provisions of this Section 8.2, the Required Lenders (or the Agent with the consent in writing of the Required Lenders) and the Borrower may enter into agreements supplemental hereto for the purpose of adding or modifying any provisions to the Loan Documents or changing in any manner the rights of the Lenders or the Borrower hereunder or waiving any Default hereunder; provided, however, that no such supplemental agreement shall, without the consent of all of the Lenders affected thereby:







8.2.1           Except as specifically provided in this Agreement, extend the final maturity of any Loan, extend the expiry date of any Facility LC to a date after the date that is one year after the Revolving Credit Termination Date, or postpone any regularly scheduled payment of principal of any Loan or forgive or reduce all or any portion of the principal amount thereof, or any Reimbursement Obligations related thereto, or reduce the rate or extend the time of payment of interest or fees thereon or Reimbursement Obligations related thereto (other than a waiver of the application of the default rate of interest pursuant to Section 2.11 hereof).







8.2.2           Reduce the percentage specified in the definition of Required Lenders or any other percentage of Lenders specified to be the applicable percentage in this Agreement to act on specified matters or amend the definition of “Pro Rata Share”.







8.2.3           Except as specifically provided in this Agreement, (i) extend the Revolving Credit Termination Date, or (ii) reduce the amount or extend the payment date for, the mandatory payments required under Section 2.2, or (iii) increase the amount of the Commitment of any Lender hereunder or the commitment to issue Facility LCs, or (iv) permit the Borrower to assign its rights or obligations under this Agreement.







8.2.4           Amend this Section 8.2 or Sections 7.2 or 9.6 or amend Article XI.







8.2.5           Alter the manner in which payments or prepayments of principal, interest or other amounts hereunder shall be applied as among the Lenders or Types of Loans.







No amendment of any provision of this Agreement relating to the Agent shall be effective without the written consent of the Agent, no amendment of any provision of this Agreement relating to the Swing Line Lender or any Swing Line Loans shall be effective without the written consent of the Swing Line Lender and no amendment of any provision relating to the LC Issuer shall be effective without the written consent of the LC Issuer.  The Agent may waive payment of the fee required under Section 12.3.3 without obtaining the consent of any other party to this Agreement.







8.3       Preservation of Rights.  No delay or omission of the Lenders or the Agent to exercise any right under the Loan Documents shall impair such right or be construed to be a waiver of any Default or an acquiescence therein, and the making of a Credit Extension notwithstanding the existence of a Default or the inability of the Borrower to satisfy the conditions precedent to such Credit Extension shall not constitute any waiver or acquiescence.  Any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of the Loan Documents whatsoever shall be valid unless in writing signed by the Lenders required pursuant to Section 8.2, and then only to the extent in such writing specifically set forth.  All remedies contained in the Loan Documents or by law afforded 






  





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shall be cumulative and all shall be available to the Agent and the Lenders until the Obligations have been paid in full.












ARTICLE IX







GENERAL PROVISIONS







9.1       Survival of Representations.  All representations and warranties of the Borrower contained in this Agreement shall survive the making of the Credit Extensions herein contemplated.







9.2       Governmental Regulation.  Anything contained in this Agreement to the contrary notwithstanding, neither the LC Issuer nor any Lender shall be obligated to extend credit to the Borrower in violation of any limitation or prohibition provided by any applicable statute or regulation.







9.3       Headings.  Section headings in the Loan Documents are for convenience of reference only, and shall not govern the interpretation of any of the provisions of the Loan Documents.







9.4       Entire Agreement.  The Loan Documents embody the entire agreement and understanding among the Borrower, the Agent and the Lenders and supersede all prior agreements and understandings among the Borrower, the Agent and the Lenders relating to the subject matter thereof  (including any previously executed commitment letters among the parties or, in the case of the Borrower, its predecessors), other than those contained in the Fee Letters described in Section 10.13 which shall survive and remain in full force and effect during the term of this Agreement.







9.5       Several Obligations; Benefits of this Agreement.  The respective obligations of the Lenders hereunder are several and not joint and no Lender shall be the partner or agent of any other (except to the extent to which the Agent is authorized to act as such).  The failure of any Lender to perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder.  This Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and assigns, provided, however, that the parties hereto expressly agree that each Arranger shall enjoy the benefits of the provisions of Sections 9.6, 9.10 and 10.11 to the extent specifically set forth therein and shall have the right to enforce such provisions on its own behalf and in its own name to the same extent as if it were a party to this Agreement.







9.6       Expenses; Indemnification.  (i) The Borrower shall reimburse the Agent and each Arranger for any reasonable costs, internal charges and out-of-pocket expenses (including reasonable attorneys’ and paralegals’ fees and time charges of attorneys for the Agent, which attorneys may be employees of the Agent and expenses of and fees for other advisors and professionals engaged by the Agent or any Arranger) paid or incurred by the Agent or any Arranger in connection with the investigation, preparation, negotiation, documentation, execution, delivery, syndication, distribution (including, without limitation, via the internet), review, amendment, modification and administration of the Loan Documents.  The Borrower also agrees to reimburse the Agent, the Syndication Agent, the Co-Documentation Agents, the Arrangers and the Lenders for any reasonable costs, internal charges and out-of-pocket expenses (including reasonable attorneys’ and paralegals’ fees and time charges and expenses of attorneys and paralegals for the Agent, the Syndication Agent, the Co-Documentation Agents, the Arrangers and the Lenders, which attorneys and paralegals may be employees of the Agent, the Syndication Agent, the Co-Documentation Agents, the Arrangers or the Lenders) paid or incurred by the Agent, the Syndication Agent, the Co-Documentation Agents, the Arrangers or any Lender in connection with the collection and enforcement of the Loan Documents.






  





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(ii)           The Borrower hereby further agrees to indemnify the Agent, the Syndication Agent, the Co-Documentation Agents, the Arrangers, each Lender, their respective affiliates, and each of their directors, officers and employees against all losses, claims, damages, penalties, judgments, liabilities and expenses (including, without limitation, all expenses of litigation or preparation therefor whether or not the Agent, the Syndication Agent, the Co-Documentation Agents, either Arranger, any Lender or any affiliate is a party thereto, and all reasonable attorneys’ and paralegals’ fees, reasonable time charges and reasonable expenses of attorneys and paralegals of the party seeking indemnification, which attorneys and paralegals may or may not be employees of such party seeking indemnification) which any of them may pay or incur arising out of or relating to this Agreement, the other Loan Documents, the transactions contemplated hereby or the direct or indirect application or proposed application of the proceeds of any Credit Extension hereunder except to the extent that they have resulted from the gross negligence or willful misconduct of the party seeking indemnification.  For the avoidance of doubt, the provisions of this clause (ii) shall not operate to expand the obligations of the Borrower under Section 9.6(i) with respect to the reimbursement of costs and expenses incurred by the Lenders in connection with the investigation, preparation, negotiation, documentation, execution, delivery, syndication, distribution (including, without limitation, via the internet), review, amendment, modification and administration (as distinguished from the enforcement) of the Loan Documents.







The obligations of the Borrower under this Section 9.6 shall survive the termination of this Agreement.







9.7       Numbers of Documents.  All statements, notices, closing documents, and requests hereunder shall be furnished to the Agent with sufficient counterparts so that the Agent may furnish one to each of the Lenders, to the extent that the Agent deems necessary.







9.8       Accounting.  Except as provided to the contrary herein, all accounting terms used in the calculation of any financial covenant or test shall be interpreted and all accounting determinations hereunder in the calculation of any financial covenant or test shall be made in accordance with Agreement Accounting Principles.  If any changes in GAAP are hereafter required or permitted and are adopted by the Borrower or any of its Subsidiaries with the agreement of its independent certified public accountants and such changes result in a change in the method of calculation of any of the financial covenants, tests, restrictions or standards herein or in the related definitions or terms used therein (“Accounting Changes”), the parties hereto agree, at the Borrower’s request, to enter into negotiations, in good faith, in order to amend such provisions in a credit neutral manner so as to reflect equitably such changes with the desired result that the criteria for evaluating the Borrower’s and its Subsidiaries’ financial condition shall be the same after such changes as if such changes had not been made; provided, however, until such provisions are amended in a manner reasonably satisfactory to the Agent and the Required Lenders, no Accounting Change shall be given effect in such calculations.  In the event such amendment is entered into, all references in this Agreement to Agreement Accounting Principles shall mean GAAP as of the date of such amendment. Notwithstanding the foregoing, all financial statements (other than pro forma financial statements or projections) to be delivered by the Borrower pursuant to Section 6.1 shall be prepared in accordance with GAAP in effect at such time (other than in the case of interim financial statements, with respect to the absence of footnotes and year end adjustments).


 


9.9       Severability of Provisions.  Any provision in any Loan Document that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable.






  





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9.10     Nonliability of Lenders.  The relationship between the Borrower on the one hand and the Lenders and the Agent on the other hand shall be solely that of borrower and lender.  Neither the Agent nor any Arranger or Lender shall have any fiduciary responsibilities to the Borrower.  Neither the Agent nor any Arranger or Lender undertakes any responsibility to the Borrower to review or inform the Borrower of any matter in connection with any phase of the Borrower’s business or operations.  The Borrower agrees that neither the Agent nor any Arranger or Lender shall have liability to the Borrower (whether sounding in tort, contract or otherwise) for losses suffered by the Borrower in connection with, arising out of, or in any way related to, the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless such losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought.  Neither the Agent nor any Arranger or Lender shall have any liability with respect to, and the Borrower hereby waives, releases and agrees not to sue for, any special, indirect, consequential or punitive damages suffered by the Borrower in connection with, arising out of, or in any way related to the Loan Documents or the transactions contemplated thereby.







9.11     Confidentiality.  Each of the Agent and the Lenders agrees that any information delivered or made available by the Borrower pursuant to this Agreement shall be kept confidential, shall be used solely in connection with evaluating, approving, structuring, administering or enforcing the credit facility contemplated hereby and shall not be provided to any other Person; provided that nothing herein shall prevent any Lender from disclosing such information (a) to any other Lender or the Agent, (b) to any other Person (including an Affiliate of such Lender) if reasonably incidental to the evaluation, administration or enforcement of the credit facility contemplated hereby, which Person has been informed of the confidential nature of such information, (c) upon the order of any court or administrative agency, (d) upon the request or demand of any regulatory agency or authority, (e) which had been publicly disclosed other than as a result of a disclosure by the Agent or any Lender prohibited by this Agreement, (f) in connection with any litigation (to the extent relating to or involving the Loan Documents or the credit facility evidenced thereby) to which the Agent, any Lender or its Affiliates may be a party, (g) to the extent necessary in connection with the exercise of any remedy hereunder, (h) to such Lender’s or the Agent’s legal counsel, independent auditors and other professional advisors, which Persons have been informed of the confidential nature of such information, (i) to such Lender’s direct or indirect contractual counterparties in swap agreements relating to this Agreement, or the Commitments or Loans hereunder, or to legal counsel, accountants and other professional advisors to such counterparties, in each case which have been informed as to the confidential nature of such information, (j) to rating agencies if requested or required by such agencies in connection with a rating relating to the Credit Extensions hereunder and (k) subject to provisions substantially similar to those contained in this Section 9.11, to any actual or proposed Participant or assignee.







9.12     Lenders Not Utilizing Plan Assets.  Each Lender represents and warrants that none of the consideration used by such Lender to make its Loans constitutes for any purpose of ERISA or Section 4975 of the Code assets of any “plan” as defined in Section 3(3) of ERISA or Section 4975 of the Code and the rights and interests of such Lender in and under the Loan Documents shall not constitute such “plan assets” under ERISA.







9.13     Nonreliance.  Each Lender hereby represents that it is not relying on or looking to any margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) for the repayment of the Credit Extensions provided for herein.







9.14     Disclosure.  The Borrower and each Lender, including the LC Issuer, hereby acknowledge and agree that Wachovia and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with the Borrower and its Affiliates.






  





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9.15     USA Patriot Act Notification.  The following notification is provided to the Borrower pursuant to the Patriot Act:







IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.  To help the government of the United States of America fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each Person that opens an account, including any deposit account, treasury management account, loan, other extension of credit, or other financial services product.  Accordingly, when the Borrower opens an account, the Agent and the Lenders will ask for the Borrower’s name, tax identification number, business address, and other information that will allow the Agent and the Lenders to identify the Borrower.  The Agent and the Lenders may also ask to see the Borrower’s legal organizational documents or other identifying documents.







9.16     Defaulting Lender.  Each Lender understands and agrees that if such Lender is a Defaulting Lender then it shall not be entitled to vote on any matter requiring the consent of the Required Lenders or to object to any matter requiring the consent of all the Lenders; provided, however, that (a) a Lender’s Commitment may not be increased without its consent whether or not it is a Defaulting Lender and (b) all other benefits and obligations under the Loan Documents shall apply to such Defaulting Lender.







9.17     Excluded Subsidiaries.  The Borrower shall have the right, at any time with prior written notice to the Agent, to (i) designate any Subsidiary as an Excluded Subsidiary in accordance with the requirements of such definition or (ii) remove any Subsidiary from being an Excluded Subsidiary; provided that the Borrower shall only have the right to make any such designation one time with respect to each Subsidiary and once a Subsidiary is removed by the Borrower from being an Excluded Subsidiary it may not be re-designated one at a later date.












ARTICLE X







THE AGENT







10.1     Appointment; Nature of Relationship.  Wachovia Bank, National Association is hereby appointed by each of the Lenders as its contractual representative (herein referred to as the “Agent”) hereunder and under each other Loan Document, and each of the Lenders irrevocably authorizes the Agent to act as the contractual representative of such Lender with the rights and duties expressly set forth herein and in the other Loan Documents.  The Agent agrees to act as such contractual representative upon the express conditions contained in this Article X.  Notwithstanding the use of the defined term “Agent,” it is expressly understood and agreed that the Agent shall not have any fiduciary responsibilities to any Lender by reason of this Agreement or any other Loan Document and that the Agent is merely acting as the contractual representative of the Lenders with only those duties as are expressly set forth in this Agreement and the other Loan Documents.  In its capacity as the Lenders’ contractual representative, the Agent (i) does not hereby assume any fiduciary duties to any of the Lenders, (ii) is a “representative” of the Lenders within the meaning of the term “secured party” as defined in the New York Uniform Commercial Code and (iii) is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents.  Each of the Lenders hereby agrees to assert no claim against the Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Lender hereby waives.











  





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10.2     Powers.  The Agent shall have and may exercise such powers under the Loan Documents as are specifically delegated to the Agent by the terms of each thereof, together with such powers as are reasonably incidental thereto.  The Agent shall have no implied duties to the Lenders, or any obligation to the Lenders to take any action thereunder except any action specifically provided by the Loan Documents to be taken by the Agent.







10.3     General Immunity.  Neither the Agent nor any of its directors, officers, agents or employees shall be liable to the Borrower, the Lenders or any Lender for any action taken or omitted to be taken by it or them hereunder or under any other Loan Document or in connection herewith or therewith except to the extent such action or inaction is determined in a final non-appealable judgment by a court of competent jurisdiction to have arisen from the gross negligence or willful misconduct of such Person.







10.4    No Responsibility for Loans, Recitals, etc.  Neither the Agent nor any of its directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into, or verify (a) any statement, warranty or representation made in connection with any Loan Document or any borrowing hereunder; (b) the performance or observance of any of the covenants or agreements of any obligor under any Loan Document, including, without limitation, any agreement by an obligor to furnish information directly to each Lender; (c) the satisfaction of any condition specified in Article IV, except receipt of items required to be delivered solely to the Agent; (d) the existence or possible existence of any Default or Unmatured Default; (e) the validity, enforceability, effectiveness, sufficiency or genuineness of any Loan Document or any other instrument or writing furnished in connection therewith; (f) the value, sufficiency, creation, perfection or priority of any Lien in any collateral security; or (g) the financial condition of the Borrower or any guarantor of any of the Obligations or of any of the Borrower’s or any such guarantor’s respective Subsidiaries.  The Agent shall have no duty to disclose to the Lenders information that is not required to be furnished by the Borrower to the Agent at such time, but is voluntarily furnished by the Borrower to the Agent (either in its capacity as Agent or in its individual capacity).







10.5     Action on Instructions of Lenders.  The Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder and under any other Loan Document in accordance with written instructions signed by the Required Lenders, and such instructions and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders.  The Lenders hereby acknowledge that the Agent shall be under no duty to take any discretionary action permitted to be taken by it pursuant to the provisions of this Agreement or any other Loan Document unless it shall be requested in writing to do so by the Required Lenders.  The Agent shall be fully justified in failing or refusing to take any action hereunder and under any other Loan Document unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action.







10.6     Employment of Agents and Counsel.  The Agent may execute any of its duties as Agent hereunder and under any other Loan Document by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, except as to money or securities received by it or its authorized agents, for the default or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care.  The Agent shall be entitled to advice of counsel concerning the contractual arrangement between the Agent and the Lenders and all matters pertaining to the Agent’s duties hereunder and under any other Loan Document.







10.7           Reliance on Documents; Counsel.  The Agent shall be entitled to rely upon any Note, notice, consent, certificate, affidavit, letter, telegram, statement, paper or document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper person or persons, and, in






  





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respect to legal matters, upon the opinion of counsel selected by the Agent, which counsel may be employees of the Agent.







10.8     Agent’s Reimbursement and Indemnification.  The Lenders agree to reimburse and indemnify the Agent, the Syndication Agent and the Co-Documentation Agents ratably in proportion to the Lenders’ Pro Rata Shares (determined at the time such reimbursement or indemnity is sought) of the Aggregate Commitment (or, if the Aggregate Commitment has been terminated, of the Outstanding Credit Exposure) (i) for any amounts not reimbursed by the Borrower for which the Agent, the Syndication Agent or any Co-Documentation Agent is entitled to reimbursement by the Borrower under the Loan Documents, (ii) for any other expenses incurred by the Agent, the Syndication Agent, or any Co-Documentation Agent on behalf of the Lenders, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the Agent or the Syndication Agent in connection with any dispute between the Agent or the Syndication Agent and any Lender or between two or more of the Lenders) and (iii) for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted against the Agent, the Syndication Agent, or any Co-Documentation Agent in any way relating to or arising out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated thereby (including, without limitation, for any such amounts incurred by or asserted against the Agent, the Syndication Agent, or any Co-Documentation Agent in connection with any dispute between the Agent, the Syndication Agent, the Co-Documentation Agents and any Lender or between two or more of the Lenders), or the enforcement of any of the terms of the Loan Documents or of any such other documents; provided that (i) no Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the party seeking indemnification and (ii) any indemnification required pursuant to Section 3.5(vii) shall, notwithstanding the provisions of this Section 10.8, be paid by the relevant Lender in accordance with the provisions thereof.  The obligations of the Lenders under this Section 10.8 shall survive payment of the Obligations and termination of this Agreement.







10.9     Notice of Default.  The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Unmatured Default hereunder unless the Agent has received written notice from a Lender or the Borrower referring to this Agreement describing such Default or Unmatured Default and stating that such notice is a “notice of default”.  In the event that the Agent receives such a notice, the Agent shall give prompt notice thereof to the Lenders.







10.10   Rights as a Lender.  In the event the Agent is a Lender, the Agent shall have the same rights and powers hereunder and under any other Loan Document with respect to its Commitment and its Loans as any Lender and may exercise the same as though it were not the Agent, and the term “Lender” or “Lenders” shall, at any time when the Agent is a Lender, unless the context otherwise indicates, include the Agent in its individual capacity.  The Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of trust, debt, equity or other transaction, in addition to those contemplated by this Agreement or any other Loan Document, with the Borrower or any of its Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby from engaging with any other Person.  The Agent, in its individual capacity, is not obligated to remain a Lender.







10.11   Lender Credit Decision.  Each Lender acknowledges that it has, independently and without reliance upon the Agent, any Arranger or any other Lender and based on the financial statements prepared by the Borrower and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the other Loan Documents.  Each Lender also acknowledges that it will, independently and without reliance upon the Agent, any Arranger or any other Lender and based on such documents and information as it shall deem appropriate at the






  





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time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents.







10.12   Successor Agent.  The Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower, such resignation to be effective upon the appointment of a successor Agent or, if no successor Agent has been appointed, forty-five (45) days after the retiring Agent gives notice of its intention to resign.  The Agent may be removed at any time with or without cause by written notice received by the Agent from the Required Lenders, such removal to be effective on the date specified by the Required Lenders.  Upon any such resignation or removal, the Required Lenders shall have the right to appoint, on behalf of the Borrower and the Lenders, an existing Lender to be the successor Agent (which successor Agent shall, unless a Default is then continuing, be approved by the Borrower, such approval not to be unreasonably withheld or delayed).  If no successor Agent shall have been so appointed by the Required Lenders within thirty (30) days after the resigning Agent’s giving notice of its intention to resign, then the resigning Agent may appoint, on behalf of the Borrower and the Lenders, an existing Lender to be the successor Agent (which successor Agent shall, unless a Default is then continuing, be approved by the Borrower, such approval not to be unreasonably withheld or delayed).  Notwithstanding the previous sentence, the Agent may at any time without the consent of the Borrower or any Lender, appoint any of its Affiliates which is a commercial bank as a successor Agent hereunder.  If the Agent has resigned or been removed and no successor Agent has been appointed, the Lenders may perform all the duties of the Agent hereunder and the Borrower shall make all payments in respect of the Obligations to the applicable Lender and for all other purposes shall deal directly with the Lenders.  No successor Agent shall be deemed to be appointed hereunder until such successor Agent has accepted the appointment.  Any such successor Agent shall be a commercial bank having capital and retained earnings of at least $100,000,000.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the resigning or removed Agent.  Upon the effectiveness of the resignation or removal of the Agent, the resigning or removed Agent shall be discharged from its duties and obligations hereunder and under the Loan Documents.  After the effectiveness of the resignation or removal of an Agent, the provisions of this Article X shall continue in effect for the benefit of such Agent in respect of any actions taken or omitted to be taken by it while it was acting as the Agent hereunder and under the other Loan Documents.  In the event that there is a successor to the Agent by merger, or the Agent assigns its duties and obligations to an Affiliate pursuant to this Section 10.12, then the term “Prime Rate” as used in this Agreement shall mean the prime rate, base rate or other analogous rate of the new Agent.







10.13   Agent and Arrangers’ Fees.  The Borrower agrees to pay to the Agent and each Arranger, for their respective accounts, the fees agreed to by Enogex, Inc, for and on behalf of the Borrower, the Agent and such Arranger pursuant to those certain letter agreements dated December 14, 2007 (the “Fee Letters”), or as otherwise agreed from time to time.







10.14   Delegation to Affiliates.  The Borrower and the Lenders agree that the Agent may delegate any of its duties under this Agreement to any of its Affiliates.  Any such Affiliate (and such Affiliate’s directors, officers, agents and employees) which performs duties in connection with this Agreement shall be entitled to the same benefits of the indemnification, waiver and other protective provisions to which the Agent is entitled under Articles IX and X.







10.15   Syndication Agent and Co-Documentation Agents.  None of the Syndication Agent and the Co-Documentation Agents shall have any rights, obligations, liabilities, responsibilities or duties under this Agreement other than those applicable to all Lenders.  Without limiting the foregoing, none of the Syndication Agent and the Co-Documentation Agents shall have or be deemed to have a fiduciary relationship with any Lender.  Each Lender hereby makes the same acknowledgements with respect to the






  





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Syndication Agent and the Co-Documentation Agents as it makes with respect to the Agent in Section 10.11.












ARTICLE XI







SETOFF; RATABLE PAYMENTS







11.1           Setoff.  In addition to, and without limitation of, any rights of the Lenders under applicable law, if the Borrower becomes insolvent, however evidenced, or any Default occurs and is continuing, any and all deposits (including all account balances, whether provisional or final and whether or not collected or available) and any other Indebtedness at any time held or owing by any Lender or any Affiliate of any Lender to or for the credit or account of the Borrower may be offset and applied toward the payment of the Obligations owing to such Lender, whether or not the Obligations, or any part thereof, shall then be due.







11.2           Ratable Payments.  If any Lender, whether by setoff or otherwise, has payment made to it upon its Outstanding Credit Exposure (other than (i) payments received pursuant to Section 3.1, 3.2, 3.4 or 3.5, (ii) payments in accordance with Section 2.21 to any Lender which has not extended its Commitment pursuant to such Section and (iii) payments to which the LC Issuer or the Swing Line Lender is entitled under Section 2.20.6 or Section 2.23.4, as applicable) in a greater proportion than that received by any other Lender, such Lender agrees, promptly upon demand, to purchase a portion of the Aggregate Outstanding Credit Exposure held by the other Lenders so that after such purchase each Lender will hold its Pro Rata Share of the Aggregate Outstanding Credit Exposure.  If any Lender, whether in connection with setoff or amounts which might be subject to setoff or otherwise, receives collateral or other protection for its Obligations or such amounts which may be subject to setoff, such Lender agrees, promptly upon demand, to take such action necessary such that all Lenders share in the benefits of such collateral ratably in proportion to their respective Pro Rata Shares of the Aggregate Outstanding Credit Exposure.  In case any such payment is disturbed by legal process, or otherwise, appropriate further adjustments shall be made.












ARTICLE XII







BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS







12.1     Successors and Assigns.  The terms and provisions of the Loan Documents shall be binding upon and inure to the benefit of the Borrower, the Agent and the Lenders and their respective successors and assigns permitted hereby, except that (i) the Borrower shall not have the right to assign its rights or obligations under the Loan Documents without the prior written consent of each Lender, (ii) any assignment by any Lender must be made in compliance with Section 12.3, and (iii) any transfer by participation must be made in compliance with Section 12.2.  Any attempted assignment or transfer by any party not made in compliance with this Section 12.1 shall be null and void, unless such attempted assignment or transfer is treated as a participation in accordance with Section 12.3.3.  The parties to this Agreement acknowledge that clause (ii) of this Section 12.1 relates only to absolute assignments and this Section 12.1 does not prohibit assignments creating security interests, including, without limitation, any pledge or assignment by any Lender of all or any portion of its rights under this Agreement and any Note to a Federal Reserve Bank; provided, however, that no such pledge or assignment creating a security interest shall release the transferor Lender from its obligations hereunder unless and until the parties thereto have complied with the provisions of Section 12.3.  The Agent may treat each Lender which made any Credit Extension or which holds any Note as the owner thereof for all purposes hereof unless and






  





59











  








until such Lender complies with Section 12.3; provided, however, that the Agent may in its discretion (but shall not be required to) follow instructions from the Lender which made any Credit Extension or which holds any Note to direct payments relating to such Credit Extension or Note to another Person.  Any assignee of the rights to any Credit Extension or any Note agrees by acceptance of such assignment to be bound by all the terms and provisions of the Loan Documents.  Any request, authority or consent of any Lender, who at the time of making such request or giving such authority or consent is the owner of the rights to any Credit Extension (whether or not a Note has been issued in evidence thereof), shall be conclusive and binding on any subsequent holder or assignee of the rights to such Credit Extension.







12.2     Participations.







12.2.1           Permitted Participants; Effect.  Any Lender may, in the ordinary course of its business and in accordance with applicable law, at any time sell to one or more banks or other entities (“Participants”) participating interests in any Outstanding Credit Exposure of such Lender, any Note held by such Lender, any Commitment of such Lender or any other interest of such Lender under the Loan Documents.  In the event of any such sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, such Lender shall remain the owner of its Outstanding Credit Exposure and the holder of any Note issued to it in evidence thereof for all purposes under the Loan Documents, all amounts payable by the Borrower under this Agreement shall be determined as if such Lender had not sold such participating interests, and the Borrower and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under the Loan Documents.  Notwithstanding the foregoing, unless a Default has occurred and is continuing, the Lenders may not sell participations in respect of their Loans or Commitments to any competitor of the Borrower or any of its Subsidiaries or any other company engaged in the business of selling or distributing energy products.







12.2.2           Voting Rights.  Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, modification or waiver of any provision of the Loan Documents other than any amendment, modification or waiver with respect to any Credit Extension or Commitment in which such Participant has an interest which would require consent of all of the Lenders pursuant to the terms of Section 8.2.







12.2.3           Benefit of Certain Provisions.  The Borrower agrees that each Participant shall be deemed to have the right of setoff provided in Section 11.1 in respect of its participating interest in amounts owing under the Loan Documents to the same extent as if the amount of its participating interest were owing directly to it as a Lender under the Loan Documents; provided that each Lender shall retain the right of setoff provided in Section 11.1 with respect to the amount of participating interests sold to each Participant.  The Lenders agree to share with each Participant, and each Participant, by exercising the right of setoff provided in Section 11.1, agrees to share with each Lender, any amount received pursuant to the exercise of its right of setoff, such amounts to be shared in accordance with Section 11.2 as if each Participant were a Lender.  The Borrower further agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2, 3.4 and 3.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 12.3; provided that (i) a Participant shall not be entitled to receive any greater payment under Section 3.1, 3.2, 3.4 or 3.5 than the Lender who sold the participating interest to such Participant would have received had it retained such interest for its own account, unless the sale of such interest to such Participant is made with the prior written consent of the Borrower, and (ii) any Participant not incorporated under the laws of the United States of America or any State thereof agrees to comply with the provisions of Section 3.5 to the same extent as if it were a Lender.






  





60











  













12.3     Assignments.







12.3.1           Permitted Assignments.  Any Lender may at any time assign to one or more banks or other entities (“Purchasers”) all or any part of its rights and obligations under the Loan Documents.  Such assignment shall be substantially in the form of Exhibit C or in such other form as may be agreed to by the parties thereto.  Each such assignment with respect to a Purchaser which is not a Lender or an Affiliate of a Lender or an Approved Fund shall either be in an amount equal to the entire applicable Commitment and Outstanding Credit Exposure of the assigning Lender or (unless each of the Borrower and the Agent otherwise consents) be in an aggregate amount not less than $5,000,000. The amount of the assignment shall be based on the Commitment or Outstanding Credit Exposure (if the Commitment has been terminated) subject to the assignment, determined as of the date of such assignment or as of the “Trade Date,” if the “Trade Date” is specified in the assignment.  Notwithstanding the foregoing, unless a Default has occurred and is continuing, the Lenders may not make assignments in respect of their Loans or Commitments to any competitor of the Borrower or any other company engaged in the business of selling or distributing energy products.







12.3.2           Consents.  The consent of the Agent and the Borrower shall be required prior to an assignment becoming effective; provided that (i) the consent of the Borrower shall not be required if a Default has occurred and is continuing and (ii) no consent shall be required from the Borrower or the Administrative Agent for assignments to a Lender or an Affiliate of a Lender; provided that no Fund shall be a Lender unless it is an Approved Fund.  Any consent required under this Section 12.3.2 shall not be unreasonably withheld or delayed; it being acknowledged and agreed however that such consents may be withheld (and it shall not be deemed unreasonable to withhold such consent) if such proposed assignee has not complied with the requirements Section 3.5(iv) or the assignment to such proposed assignee would subject the Borrower to costs, indemnities or limitations of the type described in Article III hereof in excess of those applicable to the assigning Lender.







12.3.3           Effect; Effective Date.  Upon (i) delivery to the Agent of an assignment, together with any consents required by Section 12.3.2, and (ii) payment by the assigning Lender of a $3,500 fee to the Agent for processing such assignment (unless such fee is waived by the Agent), such assignment shall become effective on the effective date specified in such assignment.  The assignment shall contain a representation and warranty by the Purchaser to the effect that none of the funds, money, assets or other consideration used to make the purchase and assumption of the Commitment and Outstanding Credit Exposure under the applicable assignment agreement constitutes “plan assets” as defined under ERISA and that the rights, benefits and interests of the Purchaser in and under the Loan Documents will not be “plan assets” under ERISA.  On and after the effective date of such assignment, such Purchaser shall for all purposes be a Lender party to this Agreement and any other Loan Document executed by or on behalf of the Lenders and shall have all the rights, benefits and obligations of a Lender under the Loan Documents, to the same extent as if it were an original party thereto, and the transferor Lender shall be released with respect to the Commitment and Outstanding Credit Exposure assigned to such Purchaser without any further consent or action by the Borrower, the Lenders or the Agent.  In the case of an assignment covering all of the assigning Lender’s rights, benefits and obligations under this Agreement, such Lender shall cease to be a Lender hereunder but shall continue to be entitled to the benefits of, and subject to, those provisions of this Agreement and the other Loan Documents which survive payment of the Obligations and termination of the Loan Documents.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 12.3 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 12.2.  Upon the consummation of any assignment to a Purchaser pursuant to this Section 12.3.3, the transferor Lender, the Agent and the Borrower shall, if the transferor Lender or the Purchaser desires that its Loans be evidenced by Notes, make appropriate arrangements so that, upon cancellation and surrender to the Borrower of the Notes (if any) held by the transferor Lender, new Notes






  





61











  








or, as appropriate, replacement Notes are issued to such transferor Lender, if applicable, and new Notes or, as appropriate, replacement Notes, are issued to such Purchaser, in each case in principal amounts reflecting their respective Commitments (or if the Aggregate Commitment has been terminated, their respective Outstanding Credit Exposure), as adjusted pursuant to such assignment.







12.3.4           Register.  The Agent, acting solely for this purpose as an agent of the Borrower (and the Borrower hereby designates the Agent to act in such capacity), shall maintain at one of its offices a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.







12.4     Dissemination of Information.  The Borrower authorizes each Lender to disclose to any Participant or Purchaser or any other Person acquiring an interest in the Loan Documents by operation of law (each a “Transferee”) and any prospective Transferee any and all information in such Lender’s possession concerning the creditworthiness of the Borrower and its Subsidiaries; provided that each Transferee and prospective Transferee agrees to be bound by Section 9.11 of this Agreement.







12.5     Tax Certifications.  If any interest in any Loan Document is transferred to any Transferee which is not incorporated under the laws of the United States or any State thereof, the transferor Lender shall cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the provisions of Section 3.5(iv).












ARTICLE XIII







NOTICES







13.1     Notices.  Except as otherwise permitted by Section 2.14 with respect to borrowing notices, all notices, requests and other communications to any party hereunder shall be in writing (including electronic transmission, facsimile transmission or similar writing) and shall be given to such party: (x) in the case of the Borrower, the Lenders or the Agent, at its address or facsimile number set forth on the signature pages hereof or, (y) in the case of any party, at such other address or facsimile number as such party may hereafter specify for the purpose by notice to the Agent and the Borrower in accordance with the provisions of this Section 13.1.  Each such notice, request or other communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section and confirmation of receipt is received, (ii) if given by mail, three (3) Business Days after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid, or (iii) if given by any other means, when delivered (or, in the case of electronic transmission, received) at the address specified in this Section; provided that, subject to Section 2.14, notices to the Agent under Article II shall not be effective until received.







13.2     Change of Address.  The Borrower, the Agent and any Lender may each change the address for service of notice upon it by a notice in writing to the other parties hereto.






  





62











  


















ARTICLE XIV







COUNTERPARTS







This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart.  This Agreement shall be effective when it has been executed by the Borrower, the Agent and the Lenders and each party has notified the Agent by facsimile transmission or telephone that it has taken such action.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed original counterpart of this Agreement.












ARTICLE XV







CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL







15.1           CHOICE OF LAW.  THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.







15.2           CONSENT TO JURISDICTION.  THE BORROWER, THE AGENT AND EACH LENDER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER, THE AGENT AND EACH LENDER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE BORROWER AGAINST THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.







15.3           WAIVER OF JURY TRIAL; CONSEQUENTIAL DAMAGES.  THE BORROWER, THE AGENT AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.  The Borrower, the Agent and each Lender hereby agrees not to assert any claim against the other, or any of their respective directors, officers, employees, attorneys or agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to any of the transactions contemplated hereby or by the other Loan Documents.






  





63











  













[Signature Pages Follow]











  





64











  








IN WITNESS WHEREOF, the Borrower, the Lenders and the Agent have executed this Agreement as of the date first above written.













	  	
ENOGEX LLC,


	  	
as the Borrower


	  	  
	  	  
	  	
By: /s/ Stephen E. Merrill


Name: Stephen E. Merrill


	  	
Title:    Vice President and Chief Financial Officer


	  	  
	  	  
	  	
Address:


	  	
321 N. Harvey


	  	
Oklahoma City, OK 73102


	  	  
	  	  
	  	
Attention:   Deborah S. Fleming


	  	
Phone:       (405) 553-3800


	  	
Facsimile:   (405) 553-3576







 







SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  














	  	
WACHOVIA BANK, NATIONAL ASSOCIATION,


	  	
as Administrative Agent and as a Lender


	  	  
	  	  
	  	
By: /s/  Leanne S. Phillips


	  	
Name:  Leanne S. Phillips


	  	
Title:    Director


	  	  
	  	  
	  	
Address:


	  	
301 S. College St.


	  	
NC-5562


	  	
Charlotte, NC 28288


	  	  
	  	  
	  	
Attention:   Leanne S. Phillips


	  	
Phone:       704-374-6278


	  	
Facsimile:   704-383-6647


	  	  






























SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  














	  	
THE ROYAL BANK OF SCOTLAND PLC,


	  	
as Syndication Agent and as a Lender


	  	  
	  	  
	  	
By: /s/  Brian Smith


	  	
Name:  Brian Smith


	  	
Title:     Senior Vice President


	  	  
	  	  
	  	
Address:


	  	
101 Park Avenue


	  	
New York, NY 10178


	  	  
	  	  
	  	
Attention:   Yolanda Roman


	  	
Phone:       212-401-1339


	  	
Facsimile:   212-401-3844


	  	  




















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  














	  	
JPMORGAN CHASE BANK, N.A.,


	  	
as Co-Documentation Agent and as a Lender


	  	  
	  	  
	  	
By: /s/ Jennifer E. Fitzgerald


	  	
Name: Jennifer E. Fitzgerald


	  	
Title:    Associate


	  	  
	  	  
	  	
Address:


	  	
10 South Dearborn St., Floor 09


	  	
Chicago, IL 60603


	  	  
	  	  
	  	
Attention:   Jennifer E. Fitzgerald


	  	
Phone:       312-732-1754


	  	
Facsimile:   312-732-1762
































SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
MIZUHO CORPORATE BANK, LTD.,


	  	
as Co-Documentation Agent and as a Lender


	  	  
	  	  
	  	
By: /s/ Leon Mo


	  	
Name: Leon Mo


	  	
Title:    Senior Vice President


	  	  
	  	  
	  	
Address:


	  	
1251 Ave of the Americas, 32nd Floor


	  	
New York, NY 10020


	  	  
	  	  
	  	
Attention:   Pauline Lam


	  	
Phone:       212-282-3129


	  	
Facsimile:   212-282-4488


	  	  




















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
UNION BANK OF CALIFORNIA,


	  	
as Co-Documentation Agent and as a Lender


	  	  
	  	  
	  	
By: /s/ Efrain Soto


	  	
Name: Efrain Soto


	  	
Title:    Vice President


	  	  
	  	  
	  	
Address:


	  	
445 S. Figueroa St., 15th Floor


	  	
Los Angeles, CA 90071


	  	  
	  	  
	  	
Attention:    Efrain Soto


	  	
Phone:        213-236-5779


	  	
Facsimile:   213-236-4096






















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
CITIBANK, N.A.,


	  	
as a Lender


	  	  
	  	  
	  	
By: /s/ Lisa Bills


	  	
Name: Lisa Bills


	  	
Title:   Vice President


	  	  
	  	  
	  	
Address:


	  	
388 Greenwich St. 21st Floor


	  	
New York, NY 10038


	  	  
	  	  
	  	
Attention:   Lisa Bills


	  	
Phone:       212-816-8554


	  	
Facsimile:   646-291-5297






















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
UBS LOAN FINANCE LLC,


	  	
as a Lender


	  	  
	  	  
	  	
By: /s/ Richard L. Tavrow


	  	
Name: Richard L. Tavrow


	  	
Title:   Director


	  	  
	  	
By: /s/ David B. Julie


	  	
Name: David B. Julie


	  	
Title:   Associate Director


	  	  
	  	
Address:


	  	
677 Washington Boulevard


	  	
Stamford, Connecticut 06901


	  	  
	  	  
	  	
Attention:   Daniel Goldberg


	  	
Phone:       203-719-1797


	  	
Facsimile:   203-719-3888






















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
THE BANK OF NEW YORK,


	  	
as a Lender


	  	  
	  	  
	  	
By: /s/ Hussam S. Alsahlani


	  	
Name: Hussam S. Alsahlani


	  	
Title:   Vice President


	  	  
	  	  
	  	
Address:


	  	
One Wall Street


	  	
New York, NY 10286


	  	  
	  	  
	  	
Attention:   Hussam S. Alsahlani


	  	
Phone:       412-234-5624


	  	
Facsimile:   412-236-6112






















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
U.S. BANK NATIONAL ASSOCIATION,


	  	
as a Lender


	  	  
	  	  
	  	
By: /s/ Mark Skornia


	  	
Name: Mark Skornia


	  	
Title:   Vice President


	  	  
	  	  
	  	
Address:


	  	
One U.S. Bank Plaza


	  	
St. Louis, MO 63101


	  	  
	  	  
	  	
Attention:   Mary Scott Seymour


	  	
                  Moore & Van Allen PLLC


	  	
                  Suite 4700


	  	
                  100 North Tryon Street


	  	
                  Charlotte, NC  28202-4003


	  	
Phone:        704-331-3584


	  	
Facsimile:   704-339-5901


	  	
maryscottseymour@mvalaw.com

















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  









	  	
BANK OF OKLAHOMA, N.A.,


	  	
as a Lender


	  	  
	  	  
	  	
By: /s/ Laura Christofferson


	  	
Name: Laura Christofferson


	  	
Title:   Senior Vice President


	  	  
	  	  
	  	
Address:


	  	
201 Robert S. Kerr


	  	
Oklahoma City, OK  73102


	  	  
	  	
Attention:   Laura Christofferson


	  	
Phone:       405-272-2327


	  	
Facsimile:   405-272-2588






















SIGNATURE PAGE TO


ENOGEX LLC


CREDIT AGREEMENT


APRIL 1, 2008




  





  











  








COMMITMENT SCHEDULE













	
LENDER

	
COMMITMENT


	
Wachovia Bank, National Association


The Royal Bank of Scotland plc


JPMorgan Chase Bank, N.A.


Mizuho Corporate Bank, Ltd.


Union Bank of California


UBS Loan Finance LLC


Citibank, N.A.


The Bank of New York


U.S. Bank National Association


Bank of Oklahoma, N.A.


 

	
$32,500,000


$32,500,000


$28,000,000


$28,000,000


$28,000,000


$28,000,000


$23,000,000


$20,000,000


$20,000,000


$10,000,000


	
 


AGGREGATE COMMITMENT

	
 


$250,000,000
















  





  











  








PRICING SCHEDULE













	
 


 


 


Pricing


Level

	
 


 


Borrower’s


Debt Rating

	
Applicable


Fee Rate


for Facility


Fees

	
Applicable Margin


for Floating Rate

	
Applicable


Margin for


Eurodollar


Rate

	
 


 


 


 


Applicable


Fee Rate


For


Utilization


Fees


	
I

	
> BBB+/Baa1/BBB+

	
0.070%

	
0.000%

	
0.230%

	
0.050%


	
II

	
BBB/Baa2/BBB

	
0.090%

	
0.000%

	
0.310%

	
0.050%


	
III

	
BBB-/Baa3/BBB-

	
0.110%

	
0.000%

	
0.440%

	
0.050%


	
IV

	
= BB+/Ba1/BB+ or 


unrated by S&P, 


Moody’s and Fitch

	
0.125%

	
0.000%

	
0.575%

	
0.100%












Notwithstanding the above, if at any time (a) there is only one Debt Rating, then the Applicable Margin and Applicable Fee Rate shall be based on that Debt Rating, (b) if there are only two Debt Ratings, then (i) if there is a one Level difference between the two Debt Ratings, then the Level corresponding to the higher Debt Rating shall be used, and (ii) if there is a greater than one Level difference between the Debt Ratings, then the Level that is one Level below the higher Debt Rating will be used and (c) if there are three Debt Ratings, (i) if all three are at different Levels, the middle Level shall apply and (ii) if two Debt Ratings correspond to the same Level and the third is different, the Level corresponding to the two same Levels shall apply.


 


The Applicable Margin and Applicable Fee Rate shall be determined and adjusted on the date (each a “Calculation Date”) on which there is a change in the Borrower’s Debt Rating.  Each determination of the Applicable Margin and the Applicable Fee Rate shall be effective from one Calculation Date until the next Calculation Date.  Any adjustment in the Applicable Margin and Applicable Fee Rate shall be applicable to all existing Loans and Letters of Credit as well as any new Loans made or Facility LC’s issued.


 












 

 











  





  











  













SCHEDULE 1







SUBSIDIARIES


(See Section 5.6)


















	
Name of Subsidiary

	
Jurisdiction of Organization

	
Percentage of Ownership


 

	
Owner

	
Material 


Subsidiary


 

	
Excluded Subsidiary


	
Enogex Gas Gathering LLC


 

	
Oklahoma

	
100%

	
Borrower

	
Yes

	
No


	
Enogex Products LLC


 

	
Oklahoma

	
100%

	
Borrower

	
Yes

	
No


	
Enogex Atoka LLC


 

	
Oklahoma

	
100%

	
Borrower

	
No

	
No

























  





  











  













SCHEDULE 2







INDEBTEDNESS


(See Section 6.11)












None.




















  





  











  























SCHEDULE 3







LIENS


(See Section 6.12)












None.

























  





  











  













SCHEDULE 4







AFFILIATE TRANSACTIONS


(See Section 6.13)













	
1.  

	
Interruptible Transportation Service Agreement between Enogex Inc. and Atoka Midstream LLC dated April 1, 2007 as may be amended or succeeded.













	
2.  

	
Operational Balancing Agreement between Enogex Inc. and Atoka Midstream LLC dated December 22, 2006 as may be amended or succeeded.













	
3.  

	
ISDA Master Agreement between Enogex Inc. and OGE Energy Resources Inc. dated December 1, 1998 as may be amended or succeeded, together with any and all transactions now or hereafter executed pursuant thereto.













	
4.  

	
NAESB Base Contract for Sale and Purchase of Natural Gas between Enogex Inc. and OGE Energy Resources Inc. dated November 8, 2007 as may be amended or succeeded, together with any and all transactions now or hereafter executed pursuant thereto.













	
5.  

	
Interruptible Transportation Service Agreement for Storage between Enogex Inc. and OGE Energy Resources Inc. date July 1, 2005 as may be amended or succeeded.













	
6.  

	
Storage Service Agreement between Enogex Inc. and OGE Energy Resources Inc. dated July 1, 2006 as may be amended or succeeded.













	
7.  

	
Intrastate Transportation Service Agreement between Enogex Inc. and OGE Energy Resources Inc. (f/k/a Enogex Services Corporation) dated October 1, 1988 as may be amended or succeeded.













	
8.  

	
Transportation Service Agreement between Enogex Inc. and OGE Energy Resources Inc. (f/k/a Enogex Services Corporation) dated October 1, 1988 as may be amended or succeeded.






























  





  











  













EXHIBIT A







FORM OF OPINIONS







Attached










  





  











  













April 1, 2008












To the Lenders and the Administrative Agent


Referred to Below


c/o Wachovia Bank, National Association


301 S. College St.


NC-0760, DC-06


Charlotte, NC  28288-0760












Re:           Enogex LLC












Ladies/Gentlemen:







 


We have acted as special counsel for Enogex LLC, a Delaware limited liability company (the “Company”), in connection with the Credit Agreement dated as of April 1, 2008 (the “Credit Agreement”) by and among the Company, as borrower, the institutions from time to time parties thereto as lenders (the “Lenders”), Wachovia Bank, National Association, as administrative agent for itself and the Lenders (the “Administrative Agent”), The Royal Bank of Scotland plc, as syndication agent, and JP Morgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd., and Union Bank of California, as co-documentation agents.  Capitalized terms used herein and not otherwised defined herein have the meanings assigned to such terms in the Credit Agreement.  This opinion letter is delivered to you pursuant to Section 4.1.5 of the Credit Agreement.  With your permission, all assumptions and statements of reliance herein have been made without any independent investigation or verification on our part except to the extent, if any, otherwise expressly stated, and we express no opinion with respect to the accuracy of the assumptions or items upon which we have relied.


 


In connection with the opinions expressed herein, we have examined such documents, records and matters of law as we have deemed necessary for the purposes of such opinions.  We have examined, among other documents, the following:


 




	
       (1)  

	
an executed copy of the Credit Agreement;









 



	
       (2)  

	
executed copies of the Notes made by the Company on the date hereof in favor of the Lenders pursuant to Section 2.13(iv) of the Credit Agreement;







 



	
       (3)  

	
the Officer’s Certificate of the Company delivered to us in connection with this opinion letter, a copy of which is attached hereto as Exhibit A (the “Officer’s Certificate”);







 



	
       (4)  

	
a copy of the Certificate of Formation of the Company certified by the Secretary of State of the State of Delaware as of a recent date and certified to us by an officer of the Company as being complete and correct and in full force and effect as of the date hereof (the “Certified Organizational Document”);







 



	
       (5)  

	
a copy of the Amended and Restated Limited Liability Company Agreement of the Company, as certified to us by an officer of the Company as being complete and correct and in full force and effect as of the date hereof;















  





  











  













 



	
       (6)  

	
copies of the resolutions duly adopted by the unanimous written consent of the Company’s sole member, OGE Energy Corp., an Oklahoma corporation, certified to us by an officer of the Company as being complete and correct and in full force and effect as of the date hereof; and







 



	
        (7)  

	
a copy of the certificate of the Secretary of State of the State of Delaware as to the existence and good standing of the Company in the State of Delaware as of such date (the “Company Good Standing Certificate”).







 


The documents referred to in items (1) and (2) above are referred to herein collectively as the “Loan Documents.”  The documents referred to in items (4) through (6) above are referred to herein collectively as the “Organizational Documents” and individually as an “Organizational Document”.


 


In all such examinations, we have assumed the legal capacity of all natural persons executing documents, the genuineness of all signatures, the authenticity of original and certified documents and the conformity to original or certified copies of all copies submitted to us an conformed or reproduction copies.  As to various questions of fact relevant to the opinions expressed herein, we have relied upon, and assume the accuracy of, representations and warranties contained in the Loan Documents and certificates of or from representatives of the Company and others and assume compliance on the part of the Company with its covenants and agreements contained therein.  In connection with the opinions expressed in the first sentence of paragraph (a) below, we have relied solely upon the Certified Organizational Document and the Company Good Standing Certificate as to the factual matters and legal conclusions set forth therein.  With respect to the opinions expressed in clauses (ii) and (iii) of paragraph (b) below, our opinions are limited to our review of only those laws and regulations that, in our experience, are normally applicable to transactions of the type contemplated by the Loan Documents.


 


Based on the foregoing, and subject to the limitations, qualifications and assumptions set forth herein, we are of the opinion that:


 


(a)  The Company is a limited liability company existing and in good standing under the laws of the State of Delaware. The Company has the limited liability company power and authority to enter into and perform its obligations under the Loan Documents.


 


(b)  The execution and delivery to the Administrative Agent and the Lenders by the Company of the Loan Documents, the borrowings by the Company under the terms of the Credit Agreement, and the performance by the Company of its obligations under the Loan Documents (i) have been authorized by all necessary limited liability company action by the Company; (ii) do not require under present law, or present regulation of any governmental agency or authority, of the State of New York or the United States of America any filing or registration by the Company with, or notice to, approval or consent of, any governmental agency or authority of the State of New York or the United States of America that has not been made or obtained except (A) those required in the ordinary course of business in connection with the performance by the Company of its obligations under certain covenants contained in the Loan Documents, (B) other filings under securities laws, and (C) other filings, registrations, consents or approvals not required to be made or obtained by the date hereof; (iii) do not violate any present law, or present regulation of any governmental agency or authority, of the State of New York, the United States or America or the Limited Liability Company Act of the State of Delaware applicable to the Company or its property, and (iv) do not contravene any provision of any Organizational Document of the Company.


 


(c)  Each Loan Document has been duly executed and delivered on behalf of the Company signatory thereto and constitutes a valid and binding obligation of the Company signatory thereto, enforceable against the Company in accordance with its terms.










  





  











  













 


(d)  The Company is not required to register as an “investment company” (under, and as defined in, the Investment Company Act of 1940, as amended (the “1940 Act”)), and the Company is not a company controlled by a company required to register as such under the 1940 Act.


 


(e)  The borrowings by the Company under the Credit Agreement and the application of the proceeds thereof as provided in the Credit Agreement will not violate Regulation T, U or X of the Board of Governors of the Federal Reserve System (the “Margin Regulations”).


 


The opinions set forth above are subject to the following qualifications and limitations:


 


(A)   Our opinions in paragraph (c) above are subject to (i) applicable bankruptcy, insolvency, reorganization, fraudulent transfer and conveyance, voidable preference, moratorium, receivership, conservatorship, arrangement or similar laws, and related regulations and judicial doctrines, from time to time in effect affecting creditors’ rights and remedies generally, (ii) general principles of equity (including, without limitation, standards of materiality, good faith, fair dealing and reasonableness, equitable defenses, the exercise of judicial discretion and limits on the availability of equitable remedies), whether such principles are considered in a proceeding at law or in equity and (iii) the qualification that certain other provisions of the Loan Documents may be unenforceable in whole or in part under the laws (including judicial decisions) of the State of New York or the United States of America, but the inclusion of such provisions does not affect the validity as against the Company of the Loan Documents as a whole and the Loan Documents contain adequate provisions for enforcing payment of the obligations governed thereby and otherwise for the practical realization of the principal benefits provided by the Loan Documents, in each case subject to the other qualifications contained in this letter.


 


(B)    We express no opinion as to the enforceability of any provision in the Loan Documents:


       


(i) providing that any person or entity may enforce any right or remedy thereunder, except in compliance with applicable laws;


 


(ii) relating to indemnification, contribution or exculpation in connection with violations of any securities laws or statutory duties or public policy, or in connection with willful, reckless or unlawful acts or gross negligence of the indemnified or exculpated party or the party receiving contribution;


 


(iii) providing that any person or entity may exercise set-off rights other than in accordance with and pursuant to applicable law;


 


(iv) relating to choice of governing law to the extent that the enforceability of any such provision is to be determined by any court other than a court of the State of New York or may be subject to constitutional limitations;


 


(v) providing that any person or entity may enforce any right or remedy thereunder except in compliance with applicable laws;


 


(vi) purporting of confer, or constituting an agreement with respect to, subject matter jurisdiction of United States federal courts to adjudicate any matter;


 


(vii) purporting to create a trust or other fiduciary relationship;










  





  











  













 


(viii) specifying that provisions thereof may be waived only in writing, to the extent that an oral agreement or an implied agreement by trade practice or course of conduct has been created that modifies any provision of such Loan Documents; or


 


(ix) giving any person or entity the power to accelerate obligations without any notice to the obligor.


 


(C)   Our opinions as to the enforceability are subject to the effect of generally applicable rules of law that:


 


(i) provide that forum selection clauses in contracts are not necessarily binding on the court(s) in the forum selected; and


 


(ii) may, where less than all of a contract may be unenforceable, limit the enforceability of the balance of the contract to circumstances in which the unenforceable portion is not an essential part of the agreed exchange, or that permit a court to reserve to itself a decision as to whether any provision of any agreement is severable.


 


(D)   We express no opinion as to the enforceability of any purported waiver, release, variation, disclaimer, consent or other agreement to similar effect (all of the foregoing, collectively, a “Waiver”) by the Company under any of the Loan Documents to the extent limited by applicable law (including judicial decisions), or to the extent that such a Waiver applies to a right, claim, duty or defense or a ground for, or a circumstance that would operate as, a discharge or release otherwise existing or occurring as a matter of law (including judicial decisions), except to the extent that such a Waiver is effective under and is not prohibited by or void or invalid under applicable law (including judicial decisions).


 


(E)    To the extent it may be relevant to the opinions expressed herein, we have assumed that the parties to the Loan Documents (other than the Company) have the power to enter into and perform such documents and to consummate the transactions contemplated thereby and that such documents have been duly authorized, executed and delivered by, and constitute legal, valid and binding obligations of, such parties.


 


(F)    For purposes of the opinions set forth in paragraph (e) above, we have relied upon the Officer’s Certificate as to the questions of fact relevant to the opinions expressed therein, and have assumed that (i) neither the Administrative Agent nor any of the Lenders are parties to or beneficiaries of any agreement or arrangement (excluding the Loan Documents) pursuant to which any extensions of credit to the Company are directly or indirectly secured by “margin stock” (as defined under the Margin Regulations), (ii) neither the Administrative Agent nor any of the Lenders nor any of their respective affiliates has extended or will extend any other credit to the Company directly or indirectly secured by margin stock, and (iii) neither the Administrative Agent nor any of the Lenders has relied or will rely upon any margin stock as collateral in extending or maintaining any extensions or credit pursuant to the Loan Documents.


 


(G)   The opinions expressed herein are limited to (i) the federal laws of the United States of America and the laws of the State of New York, and (ii) to the extent relevant to the opinions expressed in paragraphs (a), (b) and (c) above, the Limited Liability Company Act of the State of Delaware, in each case, as currently in effect.


 


(H)   Our opinions are limited to those expressly set forth herein, and we express no opinions by implication.










  





  











  













 


(I)    The opinions expressed herein are solely for the benefit of the addressees hereof and of any other person or entity becoming a Lender or Administrative Agent under the Credit Agreement, in each case above, in connection with the transaction referred to herein and may not be relied on by such addresses or such other persons or entities for any other purpose or in any manner or for any purpose by any other person or entity.


 



	  	
Very truly yours,


	  	  
	  	  
	  	
JONES DAY















  





  











  













EXHIBIT A







OFFICER’S CERTIFICATE










  





  











  













ENOGEX LLC







OFFICER’S CERTIFICATE







The undersigned Vice President and the Chief Financial Officer of Enogex LLC, a Delaware limited liability company (the “Company”), hereby certifies, as of the date hereof in connection with the execution, delivery and performance of the Credit Agreement dated as of April 1, 2008 (the “Credit Agreement”) by and among the Company, as borrower, the institutions from time to time parties thereto as lenders (the “Lenders”), Wachovia Bank, National Association, as administrative agent for itself and the Lenders (the “Administrative Agent”), The Royal Bank of Scotland plc, as syndication agent, and JP Morgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd., and Union Bank of California, as co-documentation agents; and with the consummation of the transactions contemplated thereby and the opinion of Jones Day (the “Opinion”) delivered in connection therewith, as follows:







1.  The Company is not engaged in any activity or business, and does not own any properties, not permitted pursuant to those provisions of its Certificate of Formation or Amended and Restated Limited Liability Company Agreement, (collectively, the “Company’s Charter Documents”) specifying the nature of the Company’s business and the purposes of the Company.  In particular, the Company is (a) not engaged, and does not hold itself out as being engaged or propose to engage primarily in the business or investing, reinvesting or trading in securities, (b) not engaged, and does not propose to engage, in the business of issuing any certificate, investment contract or other security that represents an obligation to pay a stated or determinable sum or sums at a fixed or determinable date or dates more than twenty-four months after the date of issuance in consideration of the payment of periodic installments of a stated or determinable amount (i.e., face-amount certificates of the installment type) and, if the Company has been engaged in such business, it does not have any such certificate outstanding and (c) not engaged, and does not propose to engage, in the business of investing, reinvesting, owning, holding or trading in securities and, if the Company is so engaged or proposes to so engage, it does not own or propose to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of government securities and cash items) on an unconsolidated basis.  For purposes of this paragraph, “investment securities” include all securities except (i) government securities, (ii) securities issued by employees’ securities companies and (iii) securities issued by majority-owned subsidiaries of the Company that are not investment companies.







2.  “Margin stock” as defined in the Margin Regulations, accounts for less than 25% of the value of the assets of the Company.







3.  To the best knowledge of the Company (i) no proceeding is pending in any jurisdiction for the dissolution or liquidation of the Company, and the Company has not filed any certificate or order of dissolution, (ii) no event has occurred that has adversely affected the good standing of the Company under the laws of its state of organization, and the Company has paid all taxes currently due, if any, and taken all other action required by state law to maintain such good standing and (iii) no grounds exist for the revocation or forfeiture of the Company’s Charter Documents.  There are no consents, licenses or approvals required in connection with the execution, delivery and performance by the Company or the validity with respect to the Company of the Loan Documents.







4.  Jones Day may rely upon the accuracy of all factual representations and warranties of the Company contained in the Loan Documents, in this Officer’s Certificate and in all documents and certificates referred to therein or delivered in connection therewith.







Capitalized terms used but not defined in this Officer’s Certificate have the meanings ascribed to them in the Opinion.










  





  











  













IN WITNESS WHEREOF, I have hereunto set my hand as of April 1, 2008.


















	
By:

	
 /s/ Stephen E. Merrill

	  
	  	
Name:  Stephen E. Merrill

	  
	  	
Title:  Vice President and Chief Financial Officer, Enogex LLC







 






























  





  











  













EXHIBIT B







COMPLIANCE CERTIFICATE







To:       The Lenders parties to the


Credit Agreement Described Below







This Compliance Certificate is furnished pursuant to that certain Credit Agreement dated as of April 1, 2008 (as amended, modified, renewed or extended from time to time, the “Agreement”) among ENOGEX LLC (the “Borrower”), the lenders party thereto and Wachovia Bank, National Association, as Agent for the Lenders.  Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the Agreement.







THE UNDERSIGNED HEREBY CERTIFIES THAT:







1.           I am the duly elected __________ of the Borrower;







2.           I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;







3.           Schedule I attached hereto sets forth financial data and computations evidencing the Borrower’s compliance with Section 6.16 of the Agreement;







4.           [Schedule II attached hereto sets forth a revised Schedule 1 to the Agreement;] [TO BE ATTACHED WITH THE ANNUAL STATEMENTS IF A NEW SUBSIDIARY HAS BEEN FORMED OR ACQUIRED OR THERE HAS BEEN ANY CHANGE IN THE STATUS OF MATERIAL SUBSIDIARIES]







5.           The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes a Default or Unmatured Default at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth below.







Described below are the exceptions, if any, to paragraph 5 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:








	  
	  
	  
	  
	  
	  


















  





  











  













The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ___ day of __________, _____.













	  	
ENOGEX LLC,


	  	
as the Borrower


	  	  
	  	  
	  	
By:_________________________________, solely in his/her capacity as an office and not in his/her individual capacity


	  	
 


Name:


	  	
Title:




















  





  











  













SCHEDULE I TO COMPLIANCE CERTIFICATE







Compliance as of _________, ____ with


Provisions of Section 6.16 of


the Agreement










  





  











  













SCHEDULE II TO COMPLIANCE CERTIFICATE

















Subsidiary Information










  





  











  













EXHIBIT C







ASSIGNMENT AND ASSUMPTION AGREEMENT







Reference is made to the Credit Agreement, dated as of April 1, 2008 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”), by and among Enogex LLC (the “Borrower”), the lenders from time to time party thereto (the “Lenders”) and Wachovia Bank, National Association, as Administrative Agent for the Lenders (the “Administrative Agent”).  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings provided in the Credit Agreement.







__________________________________ (the “Transferor Lender”) and _________________________ (the “Purchasing Lender”) agree as follows:







1.            For an agreed consideration, the Transferor Lender hereby irrevocably sells and assigns to the Purchasing Lender, and the Purchasing Lender hereby irrevocably purchases and assumes from the Transferor Lender, as of the Transfer Funding Date (as defined below), (a) all of the Transferor Lender’s rights and obligations under the Credit Agreement with respect to the credit facility contained in the Credit Agreement as set forth on Schedule 1, and all instruments delivered pursuant thereto to the extent related to the Commitment set forth on Schedule 1 attached hereto of all of such outstanding rights and obligations of the Transferor Lender under the respective facilities set forth on Schedule 1 (including any letters of credit, guarantees, and swingline loans included in such facility) and (b) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Transferor Lender (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (a) above (the rights and obligations sold and assigned pursuant to clauses (a) and (b) above being referred to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse to the Transferor Lender and, except as expressly provided in this Assignment and Assumption Agreement, without representation or warranty by the Transferor Lender.







2.            The Transferor Lender (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption Agreement and to consummate the transactions contemplated hereby; (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under the Loan Documents; and (c) in the case of an assignment of the entire remaining amount of the Transferor Lender’s Commitments, attaches any Note(s) held by it evidencing the Assigned Interest and requests that the Agent exchange the attached Note(s) for a new Note(s) payable to the Purchasing Lender.







3.            The Purchasing Lender (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption Agreement and to consummate the transactions contemplated hereby and to become a Lender under the










  





  











  













Credit Agreement, (ii) from and after the Effective Date (as defined below), it shall be bound by the provisions of the Loan Documents as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder and (iii) it has received a copy of the Credit Agreement, together with copies of the financial statements delivered pursuant to Section 6.1.1 thereof, if any, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption Agreement and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Agent or any other Lender; (b) agrees that it will (i) independently and without reliance upon the Transferor Lender, the 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 the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto and (ii) perform in accordance with its terms all the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender including, if it is organized under the laws of a jurisdiction outside the United States, its obligations pursuant to Section 3.5 of the Credit Agreement; and (c) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Agent by the terms thereof, together with such powers as are incidental thereto.







4.            The effective date of this Assignment and Assumption Agreement shall be ________ ___, ____ (the “Effective Date”).  Following the execution of this Assignment and Assumption Agreement, it will be delivered to the Agent for acceptance by it and recording by the Agent pursuant to the Credit Agreement, effective as of the Effective Date.







5.            The funding date for this Assignment and Assumption Agreement shall be ________ ___, ____ (the “Transfer Funding Date”).  On the Transfer Funding Date, any registration and processing fee shall be due and payable to the Agent pursuant to Section 12.3 of the Credit Agreement.







6.            Upon such acceptance, recording and payment of applicable registration and processing fees, from and after the Transfer Funding Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Purchasing Lender whether such amounts have accrued prior to the Transfer Funding Date or accrue subsequent to the Transfer Funding Date.  The Transferor Lender and the Purchasing Lender shall make all appropriate adjustments in payments by the Agent for periods prior to the Transfer Funding Date or, with respect to the making of this assignment, directly between themselves.







7.            From and after the Transfer Funding Date, (a) the Purchasing Lender shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Assumption Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents and shall be bound by the provisions thereof and (b) the Transferor Lender shall, to the extent provided in this Assignment and Assumption Agreement, relinquish its rights and be released from its obligations under the Credit Agreement.







8.           This Assignment and Assumption Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York without regard to conflict of laws principles thereof (other than Sections 5-1401 and 5-1402 of The New York General Obligations Law).







IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be executed as of the date first above written by their respective duly authorized officers on Schedule 1 hereto.










  





  











  













SCHEDULE 1


TO ASSIGNMENT AND ASSUMPTION AGREEMENT







Effective Date: ________, ____


 


 



	 





 







Name of Transferor Lender: ________________







Name of Purchasing Lender: ________________







Transfer Funding Date of Assignment: _______________







Credit Facility CUSIP Number: _____         __________


                        


Assigned Interest:








	
Facility Assigned

	
Principal Amount of 


Commitment/Loans 


Assigned

	
CUSIP Number


	  	
$

	  


















  





  











  



















	
[NAME OF PURCHASING LENDER]

	
[NAME OF TRANSFEROR LENDER]


	  	  
	  	  
	
By:                                                   

	
By:                                                   


	
     Name:

	
     Name:


	
     Title:

	
     Title:


	  	  
	  	  
	
Accepted (if required):

	
Consented to (if required):


	  	  
	
WACHOVIA BANK,

	
ENOGEX LLC


	
NATIONAL ASSOCIATION,

	
a Delaware limited liability company,


	
as the Agent, Swingline Lender

	
as the Borrower


	
and LC Issuer

	  
	  	  
	
 

	  
	
By:                                                   

	
By:                                                    


	
     Name:

	
     Name:


	
     Title:

	
     Title:


	  	  















 










  





  











  













EXHIBIT D







LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION







To Wachovia Bank, National Association,


as Agent (the “Agent”) under the Credit Agreement


Described Below.








	
Re:

	
Credit Agreement, dated April 1, 2008 (as the same may be amended or modified, the “Credit Agreement”), among ENOGEX LLC (the “Borrower”), the Lenders named therein and the Agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned thereto in the Credit Agreement.












The Agent is specifically authorized and directed to act upon the following standing money transfer instructions with respect to the proceeds of Advances or other extensions of credit from time to time until receipt by the Agent of a specific written revocation of such instructions by the Borrower; provided, however, that the Agent may otherwise transfer funds as hereafter directed in writing by the Borrower in accordance with Section 13.1 of the Credit Agreement or based on any telephonic notice made in accordance with Section 2.14 of the Credit Agreement.


 



	Customer/Account Name	 





 



	Transfer Funds To 	 
	 	 
	 	 
	 	 
	For Account No. 	 





 



	Reference/Attention To 	 	 





 



	Authorized Officer (Customer Representative) 	 	Date 	 	 





 




	 	 	 







	(Please Print)	 	Signature 






 



	BankOfficer Name 	 	Date 	 	 





 




	 	 	 







	(Please Print)	 	Signature 





 












 


(Deliver Completed Form to Credit Support Staff For Immediate Processing)










  





  











  













EXHIBIT E







NOTE







[Date]







ENOGEX LLC, a Delaware limited liability company (the “Borrower”), promises to pay to ____________________________________ (the “Lender”) on the Facility Termination Date (or, if the Revolving Credit Termination Date has been extended prior to the Facility Termination Date and the Lender did not consent thereto, the previously effective Revolving Credit Termination Date applicable to the Lender, without giving effect to such extension) __________ DOLLARS ($_____) or, if less, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to Article II of the Agreement (as hereinafter defined), in immediately available funds at the main office of Wachovia Bank, National Association in Charlotte, North Carolina, as Agent, together with accrued but unpaid interest thereon.  The Borrower shall pay interest on the unpaid principal amount hereof at the rates and on the dates set forth in the Agreement.







The Lender shall, and is hereby authorized to, record on the schedule attached hereto, or to otherwise record in accordance with its usual practice, the date and amount of each Loan and the date and amount of each principal payment hereunder.







This Note is one of the Notes issued pursuant to, and is entitled to the benefits of, the Credit Agreement dated as of April 1, 2008 (which, as it may be amended or modified and in effect from time to time, is herein called the “Agreement”), among the Borrower, the lenders party thereto, including the Lender, and Wachovia Bank, National Association, as Agent, to which Agreement reference is hereby made for a statement of the terms and conditions governing this Note, including the terms and conditions under which this Note may be prepaid or its maturity date accelerated.  Capitalized terms used herein and not otherwise defined herein are used with the meanings attributed to them in the Agreement.







Any assignment of this Note, or any rights or interest herein, may only be made in accordance with the terms and conditions of the Agreement.  This Note is a registered Note and, as provided in the Agreement, the Borrower, the Agent and the Lenders may treat the person whose name is recorded in the Register as the owner hereof for all purposes, notwithstanding notice to the contrary.  The entries in the Register shall be conclusive, absent manifest error.







This Note shall be governed by, and construed in accordance with, the laws of the State of New York, but giving effect to federal laws applicable to national banks.



	  	  	  
	  	
ENOGEX LLC


	  	  	  
	  	
By:

	  









	  	
Print Name:

	  











	  	
Title:

	  










 









  





  











  


















SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL


TO


NOTE OF ENOGEX LLC,


DATED _____________ ____, 20___








	  	  	  	  	  
	
Date

	
Principal


Amount of


Loan

	
Maturity


of Interest


Period

	
Principal


Amount


Paid

	
Unpaid


Balance


	  	  	  	  	  






































  





  











  


















EXHIBIT F







FORM OF JOINDER AGREEMENT







Joinder Agreement












Dated [__________]







Reference is made to the Credit Agreement dated as of April 1, 2008 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement” by and among ENOGEX LLC, a Delaware limited liability company, (the “Borrower”), the lenders party thereto (the “Lenders”) and Wachovia Bank, National Association, as agent (the “Agent”).  Capitalized terms used herein which are not defined herein shall have the meanings assigned thereto in the Credit Agreement.







The Borrower, [__________] (the “Increasing Lender”) and [__________] (the “New Lender”) agree as follows:







1.           Subject to Section 2.22 of the Credit Agreement and this Joinder Agreement, the Borrower hereby increases the Aggregate Commitment from $[__________] to $[__________].  This Joinder Agreement is entered into pursuant to, and authorized by, Section 2.22 of the Credit Agreement.







2.           Attached hereto is a Commitment Schedule which reflects the Commitment of each New Lender and Increasing Lender as of the Effective Date of this Joinder Agreement.







3.           (a)           The Increasing Lender attaches the Note delivered to it under the Credit Agreement and requests that the Borrower exchange such Note for a new Note payable to the Increasing Lender as follows:  [NOTE: ONLY APPLICABLE IF INCREASING LENDER HOLDS A NOTE.]













	
Note Payable to the Order of:


 

	
Principal Amount of Note


	
 


[Increasing Lender]

	
 


$[__________]












(b)           The New Lender requests that the Borrower issue a new Note payable to the New Lender as follows:  [NOTE: ONLY APPLICABLE IF NEW LENDER REQUESTS A NOTE.]








	
Note Payable to the Order of:


 

	
Principal Amount of Note


	
 


[New Lender]

	
 


$[__________]












4.           Each of the Increasing Lender and New Lender (i) represents and warrants that it is legally authorized to enter into this Joinder Agreement; (ii) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 6.1 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Joinder Agreement; (iii) agrees that it will, independently and without reliance upon any other Lender or the Agent 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 the Credit Agreement; (iv) confirms that it is a Purchaser permitted to receive 


 


 




  





  











  






Assignments pursuant to Section 12.3; (v) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (vi) agrees that it will perform in accordance with their terms all the obligations which by the terms of the Credit Agreement and the other Loan Documents are required to be performed by it as a Lender; (vii) agrees to hold all confidential information in a manner consistent with the provisions of Section 9.11 of the Credit Agreement; and (viii) includes herewith for the Agent such forms required by Section 3.5(iv) of the Credit Agreement (if not previously delivered).







5.           The effective date for this Joinder Agreement shall be [__________] (the “Effective Date”).  Following the execution of this Joinder Agreement, it will be delivered to the Agent for the consent of the Agent.







6.           Upon consent of the Agent, from and after the Effective Date, the Increasing Lender and the New Lender shall be a party to the Credit Agreement and the other Loan Documents to which Lenders are parties and, to the extent provided in this Joinder Agreement, have the rights and obligations of a Lender under each such agreement.







7.           Upon consent of the Agent, from and after the Effective Date, the Agent shall make such reallocations of each Lender’s “Outstanding Credit Exposure” under the Credit Agreement as are necessary in order that each such Lender’s Outstanding Credit Exposure reflects such Lender’s Pro Rata Share of the Outstanding Credit Exposure and the Increasing Lender and the New Lender shall make such payments (if any) necessary to effect such reallocation.







8.           The representations and warranties of the Borrower contained in Article V of the Credit Agreement are true and correct in all material respects as of the date hereof except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation and warranty shall have been true and correct on and as of such earlier date, both before and after giving effect to this Joinder Agreement, and no Default or Unmatured Default shall have occurred and be continuing, both before and after giving effect to this Joinder Agreement.







9.           THIS JOINDER AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.







10.           This Joinder Agreement may be executed in separate counterparts, each of which when executed and delivered is an original but all of which taken together constitute one and the same instrument.







**********










  





  











  


















IN WITNESS WHEREOF, the Borrower, the New Lender, the Increasing Lender and the Agent have executed this agreement as of the date first above written.













	  	
ENOGEX LLC


	  	  
	  	  
	  	
By:_______________________________


Name:


	  	
Title:

















 



	
[NEW LENDER]

	  
	  	  
	
By:____________________________


Name:

	  
	
Title:

	  
















	
[INCREASING LENDER]

	  
	  	  
	  	  
	
By:_____________________________

	  
	
Name:

	  
	
Title:

	  
	  	  
	  	  
	
Acknowledged and Agreed:

	  
	  	  
	
WACHOVIA BANK, NATIONAL ASSOCIATION,

	  
	
as Agent

	  
	  	  
	  	  
	
By:______________________________

	  
	
Name:

	  
	
Title:

	  
	  	  
	  	  


















  





  











  













COMMITMENT SCHEDULE













	
LENDER

	
COMMITMENT


	
[__________]

	
$[__________]