##### 



EXECUTION VERSION
  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
    as Borrower,
   as Initial Lenders
   as Administrative Agent,
   as Co-Syndication Agents,
   as Co-Documentation Agents
 
 
 as Lead Arrangers,




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




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




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iii SchedulesSchedule I
    
    List of Applicable Lending OfficesSchedule II
    
    Global Coordinators AddressesSchedule III
    
    Commitment PercentagesSchedule IV
    
    Existing Letters of CreditExhibitsExhibit A-1
    
    Form of Promissory NoteExhibit A-2
    
    Form of Swingline Promissory NoteExhibit B
    
    Form of Notice of BorrowingExhibit C
    
    Form of Assignment and AcceptanceExhibit D
    
    Form of CAF NoteExhibit E
    
    Form of Competitive Bid RequestExhibit F
    
    Form of Competitive BidExhibit G
    
    Form of Competitive Bid ConfirmationExhibit H
    
    Form of Notice of Letter of Credit IssuanceExhibit I
    
    Form of Assumption Agreement




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CREDIT AGREEMENT
  Agreement Borrower Initial Lenders Co-Syndication Agents Citibank Co-Documentation Agents Administrative Agent
       Certain Defined Terms
 Acquired Entity
 Advance
 Affiliate
 Administrative Agents Account
 Aggregate Outstanding Extensions of Credit
 Applicable Lending Office




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2 Applicable Margin
 Public Debt Rating
    
    Applicable Margin for
    
    Applicable Margin forS&P/Moodys/Fitch
    
    Base Rate Advances
    
    Eurodollar Rate AdvancesLevel 1Higher than Level 2
    
    0.0%
    
    0.25%Level 2BBB+/Baal/BBB+
    
    0.0%
    
    0.35%Level 3BBB/Baa2/BBB
    
    0.0%
    
    0.45%Level 4BBB-/Baa3/BBB-
    
    0.0%
    
    0.55%Level 5BB+/Ba1/BB+
    
    0.0%
    
    0.70%Level 6
Lower than Level 5 or
unrated by S&P, Moodys
and Fitch
    
    0.00%
    
    1.00%
 Applicable Percentage
 Public Debt Rating
    
    ApplicableS&P/Moodys/Fitch
    
    PercentageLevel 1
Higher than Level 2
    
    0.06%Level 2
BBB+/Baal/BBB+
    
    0.07%Level 3
BBB/Baa2/BBB
    
    0.09%Level 4
BBB-/Baa3/BBB-
    
    0.125%Level 5
BB+/Ba1/BB+
    
    0.175%Level 6
Lower than Level 5 or unrated by S&P, Moodys and Fitch
    
    0.20%
 Applicable Utilization Fee plus
 Public Debt Rating
    
    Applicable UtilizationS&P/Moodys/Fitch
    
    FeeLevel 1
Higher than Level 2
    
    0.05%Level 2
BBB+/Baal/BBB+
    
    0.05%Level 3
BBB/Baa2/BBB
    
    0.05%




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3 Public Debt Rating
    
    Applicable UtilizationS&P/Moodys/Fitch
    
    FeeLevel 4
BBB-/Baa3/BBB-
    
    0.05%Level 5
BB+/Ba1/BB+
    
    0.10%Level 6
Lower than Level 5 or unrated by
S&P, Moodys and Fitch
    
    0.10%
 Assignment and Acceptance Exhibit C
 Assuming Bank
 Available Amount
 Base Rate
   Base Rate Advance
 Board
 Borrowed Money provided however
 Borrowing
 Borrowing Date
 Business Day




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4 CAF Advance
 CAF Borrowing
 CAF Eurodollar Rate Advance
 CAF Facility
 CAF Margin
 CAF Note Exhibit D
 CAF Rate
 Capital Lease
 Capital Stock
 Closing Date
 Commitment
 Commitment Increase
 Commitment Percentage
 Communications
 Competitive Bid
 Competitive Bid Confirmation




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5 Competitive Bid Request
 Confidential Information
 Consolidated
 Consolidated Capitalization
 Consolidated Shareholders Equity
 Contractual Obligation
 Controlled
 Convert Conversion Converted
 Declining Lender
 Default
 Domestic Lending Office
 Effective Date
 Eligible Assignee provided however




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6 Environmental Action
 Environmental Law
 Environmental Permit
 Equity Interests
 ERISA
 ERISA Affiliate
 ERISA Event
 Eurocurrency Liabilities
 Eurodollar Lending Office




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7 Eurodollar Rate Eurodollar Rate
 Eurodollar Rate Advance
 Eurodollar Rate Reserve Percentage
 Events of Default
 Exchange Act
 Existing Credit Facility
 Existing Issuing Banks
 Existing Letters of Credit
 Extending Lender
 Extended Termination Date
 Federal Funds Rate




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8  Fee Letter
 Financial Officer
 Fitch
 Fixed Rate Advance
 Fully Hedged
 GAAP
 Global Coordinators
 Governmental Authority
 Guarantee guaranteeing person primary obligation
 Hazardous Materials




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9  Hybrid Equity Securities
 Increase Date
 Increasing Lender
 Indebtedness provided however
 Indexed Asset
 Indexed Debt Securities
 Information Memorandum
 Interest Period provided however




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10   provided however
  Internal Revenue Code
 Investment
 Issuing Banks
 Junior Subordinated Debt
 Lead Arrangers
 L/C Disbursement
 Lenders
 Letter of Credit Advance
 Letter of Credit Commitment




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11  Letter of Credit Facility
 Letters of Credit
 Lien
 Loan Documents
 Local Distribution Company
 Mandatory Payment Preferred Stock provided
 Margin Stock
 Material Adverse Change
 Material Adverse Effect
 Maturity Date
 MLP
 MLP GP
 MLP LP
 MLP Subsidiary
 MLP Unrestricted Subsidiary
 Money Market Rate




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12 plus
 Money Market Rate Loan
 Moodys
 Multiemployer Plan
 Multiple Employer Plan
 Net Tangible Assets minus minus
 Non-Recourse Debt
 Note
 Notice
 Notice Date
 Notice of Borrowing




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13 Notice of Letter of Credit Issuance
 Obligation
 Parent
 PBGC
 Performance Guaranty
 Permitted Liens
 provided however provided further
 provided however
  provided however




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14 provided further
    provided provided provided provided
    Permitted MLP Asset Transfer provided




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15     Person
 Plan
 Platform
 Principal Property
 Project Finance Subsidiary Project Finance Subsidiaries
 Project Financing
 Property
 Pro Rata Share




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16 Public Debt Rating Majority Level provided
 Register
 Regulation T Regulation U
 Required Lenders
 Requirements of Law
 Responsible Officer
 Restricted Subsidiary
 Revolving Advances
 Revolving Borrowing
 Revolving Commitment
 Revolving Extensions of Credit
 Revolving Facility
 Sale and Leaseback Transaction




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17  S&P
 Second Extended Termination Date
 Significant Subsidiary
 Single Employer Plan
 Solvent
 Subsidiary
 Swingline Limit
 Swingline Exposure
 Swingline Lender
 Swingline Loan




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18 Termination Date
 Total Aggregate Outstanding Extensions of Credit
 Total Commitments
 Total Debt less less provided less
 True-Up Litigation
 Type
 Unused Revolving Credit Commitment minus plus
 Unrestricted Subsidiary




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19  provided
 Value
 Voting Stock
 Wholly-Owned
 Computation of Time Periods
 Accounting Terms GAAP
   The Revolving Advances and Letters of Credit The Revolving
Advances Revolving Advances




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20 Schedule
III Revolving Commitment Revolving Facility
 The Letters of Credit Letters of Credit provided however provided further provided however
 Total Revolving Commitments.
 Making the Revolving Advances Notice
of Borrowing Exhibit B




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21      Swingline Loans provided




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22 provided
  mutatis mutandis
 Issuance of and Drawings and Reimbursement Under Letters of Credit Request for Issuance Exhibit H Notice of Letter of Credit Issuance Exhibit H




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23 Letter of Credit Reports
 Participations in Letters of Credit
 Drawing and Reimbursement
 Failure to Make Letter of Credit Advances
 The CAF Advances CAF
Facility
  Competitive Bid Procedure Exhibit
E




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24 Competitive Bid Request
 Exhibit F Competitive Bid Exhibit F
  provided however Exhibit G Competitive Bid Confirmation




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25 provided however provided
     provided however




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26 Exhibit B Exhibit E
 Fees Commitment Fee
 Agents Fees
 Letter of Credit Fees, Etc
     Termination or Reduction of the Revolving Commitments provided
 first second




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27 Repayment Revolving Advances
 Letter of Credit Advances
 Obligations Absolute
     Interest Scheduled Interest
 Base Rate Advances plus plus
 Eurodollar Rate Advances




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plus plus
 CAF Eurodollar Rate Advances
 Swingline Loans plus
 Default Interest Default Interest provided however
 Interest Rate Determination




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Optional Conversion of Revolving Advances provided however
 Optional Prepayments of Revolving Advances provided however
 Increased Costs provided however




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provided however
 Illegality provided however
 Payments and Computations




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provided however
  Taxes excluding Taxes provided however




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Other Taxes
  United States United States person
  other than provided however




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provided
 Sharing of Payments, Etc provided however
 Use of Proceeds
 Extension Option Notice Date Extending Lender Extended Termination Date Second Extended Termination Date provided Declining Lender provided




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Increase in the Aggregate Revolving Commitments Commitment Increase Increase Date provided however
 Commitment Date Increasing
Lender
 provided however
 Assuming Bank provided however
  Exhibit I Assumption Agreement




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Evidence of Debt Exhibit A Exhibit D
  provided however
   Conditions Precedent to Effectiveness of Sections 2.01 and 2.05 Effective Date




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Conditions Precedent to Each Revolving Borrowing, Issuance and Commitment
Increase




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Conditions Precedent to Each CAF Borrowing
    Determinations Under Section 3.01
   Representations and Warranties of the Borrower




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provided




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Affirmative Covenants
 Compliance with Laws, Etc
 Payment of Taxes, Etc provided however
 Maintenance of Insurance provided however
 Preservation of Existence, Etc provided however provided further
 Visitation Rights




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provided however
 Keeping of Books
 Maintenance of Properties, Etc
 Maintenance of Existing Business
 Use of Proceeds
 Reporting Requirements




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provided
 Negative Covenants
 Restrictions on Liens provided however
  provided




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provided
     provided
   Consolidation, Mergers or Disposal of Assets




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provided however provided provided
  Subsidiary Indebtedness
 Restrictions on Dividends, Intercompany Loans, or Investments provided provided further




---



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Affiliate Transaction provided provided provided
 Use of Proceeds: Regulation U
 Takeover Bids
 Certain Investments, Loans, Advances, Guaranties and Acquisitions




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Investment
 Total Debt to Capitalization Ratio
   Events of Default Events of
Default




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MRT CEGT




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provided however
 Actions in Respect of the Letters of Credit upon Default provided however
   Authorization and Action provided however
 Administrative Agents Reliance, Etc




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Citibank and Affiliates


Lender Credit Decision


Indemnification Indemnified Costs provided








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provided however
 provided
 Successor Administrative Agents provided
 Agents; Lead Arrangers; Global Coordinators




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Amendments, Etc provided however provided further
 Notices, Etc provided
 Public Lender Communications Platform




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provided


Citigroup
Parties


No Waiver; Remedies


Costs and Expenses






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Indemnified Party






Right of Set off






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provided
 Binding Effect
 Assignments and Participations provided however




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Register
 Exhibit C Exhibit A-1 Exhibit A-2
 provided however
 provided however
 provided




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provided however


Patriot Act Notification Patriot Act


Confidentiality


Governing Law


Counterparts; Integration; Electronic Execution


Execution in Counterparts, Integration






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Electronic Execution of Assignments
 Removal of Lender provided however
 Jurisdiction, Etc




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CENTERPOINT ENERGY RESOURCES CORP., as BorrowerBy

/s/
Marc KilbrideName: Marc KilbrideTitle: Vice President and Treasurer




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CITIBANK, N.A., as Administrative Agent and a LenderBy
    /s/  Nietzsche RodricksName:  Nietzsche RodricksTitle:    Vice President






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DEUTSCHE BANK SECURITIES INC. as Co-Syndication AgentBy
    /s/  Ming K. ChuName:  Ming K. ChuTitle:   Vice President


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



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BANK OF AMERICA, NATIONAL ASSOCIATION, as Co-
     Syndication Agent and a LenderBy

/s/
John P. WofferdName: John P. Wofferd
Title: Vice President






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JPMorgan Chase Bank, N.A.By

/s/
Robert TrabandName:
    Robert TrabandTitle:
    Executive Director




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BARCLAYS BANK PLC, as a BankBy

/s/
Sydney DennisName:
    Sydney DennisTitle:
    Director




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DEUTSCHE BANK AG NEW YORK BRANCH/s/ Marcus TarlingtonName: Marcus TarlingtonTitle: Director/s/ Rainer MeierName: Rainer MeierTitle: Vice President




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Wachovia Banl, NABy

/s/
Henry R. BiedrzyckiTitle:          
HENRY R. BIEDRZYCKIDIRECTOR




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ABN AMRO Bank N.V.By

/s/
Jim MoyesTitle:        Jim MoyesManaging Director By

/s/
Scott DonaldsonTitle: Scott DonaldsonDirector




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[[The Bank of Nova Scotia]By:

/s/
Thane RattewName:
    Thane RattewTitle:
    Managing Director




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Credit Suisse, Cayman Islands
BranchBy:
    Brian CaldwellName:
    Brian CaldwellTitle:
    Director By:

/s/ Nupur KumarName:
    Nupur KumarTitle:
    Associate




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THE ROYAL BANK OF SCOTLAND PLCBy

/s/
Emily FreedmanName:
    Emily FreedmanTitle:
    Vice President




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UBS LOAN FINANCE LLCBy

/s/
Irja R. OtsaTitle:        Associate Director UBS LOAN FINANCE LLCBy

/s/
Mary E. EvensTitle:        Associate Director




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The Bank of Tokyo-Mitsubishi UFJ Limited, 
New York BranchBy

/s/
Alan ReiterTitle:   A. ReiterAuthorized Signatory




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MORGAN STANLEY BANKBy

/s/
Daniel TwengeTitle:         Daniel TwengeAuthorized Signatory
Morgan Stanley Bank




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LEHMAN BROTHERS BANK, FSBBy

/s/
Errington HibbertTitle: Managing Director




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SunTrust BankBy

/s/
Yann PirioName:
    Yann PirioTitte: Vice President




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HSBC Bank USA, N.A.By

/s/
Jennifer L. DiedzicTitle: Assistant Vice President




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ROYAL BANK OF CANADABy

/s/
David A. McCluskeyTitle:    Authorized Signatory




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Comerica BankBy
    
    /s/ Chuck JohnsonName: Chuck JohnsonTitle:    Vice President




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The Northern Trust CompanyBy

/s/
Peter HallanPeter HallanVice President




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Wells Fargo Bank, N.A.By

/s/
Jo Ann VasquezTitle: Vice President




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Schedule I
 List of Applicable Lending Offices
 Bank of America, National
Association
    
    901 Main StreetDallas, TX 75202Account Name: Credit ServicesReference: CenterPoint Energy ResourcesDeutsche Bank Securities Inc.
    
    Domestic Office:Deutsche Bank AG New York Branch60 Wall StreetNew York, NY 10005Reference: CenterPoint Energy, Inc.Eurodollar Office:Deutsche Bank AG New York Branch60 Wall StreetNew York, NY 10005Reference: CenterPoint Energy, Inc.Citibank, N.A.
    
    Domestic Office:Two Penns Way, Suite 200New Castle, DE 19720Attn: Lauren WendolowskiReference: CenterPoint Energy ResourcesEurodollar Office:Two Penns Way, Suite 200New Castle, DE 19720Attn: Lauren WendolowskiReference: CenterPoint Energy Resources




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Schedule II
 Global Coordinators Addresses
 Citigroup Global Markets Inc.
    
    390 Greenwich Street, 1st FloorNew York, NY 10013Attn: Maureen MaroneyTel: 212 723 6794Telecopy: 646 291 1772maureen.p.maroney@citi.comJ.P. Morgan Securities Inc.
    
    270 Park AvenueNew York, NY 10017Attn: Lisa KopffTel: 212 270 6091Telecopy: 212 270 1063lisa.kopff@chase.com




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Schedule III
 SCHEDULE OF COMMITMENTS
 Bank
    
    CommitmentJPMorgan Chase Bank, N.A.
    
    $
    69,795,918.36Citibank, N.A.
    
    $
    69,795,918.36Bank of America, N.A.
    
    $
    67,857,142.86Barclays
Bank plc
    
    $
    67,857,142.86Deutsche Bank AG New York Branch
    
    $
    67,857,142.86Wachovia Bank, N.A.
    
    $
    67,857,142.86ABN AMRO
Bank, N.V.
    
    $
    58,163,265.30The Bank of Nova Scotia
    
    $
    58,163,265.30Credit Suisse, Cayman Islands Branch
    
    $
    58,163,265.30The Royal
Bank of Scotland plc
    
    $
    58,163,265.30UBS Loan Finance LLC
    
    $
    58,163,265.30The Bank of Tokyo-Mitsubishi UFJ, Ltd.
    
    $
    34,897,959.19Morgan Stanley Bank
    
    $
    34,897,959.19Lehman Brothers Bank, FSB
    
    $
    34,897,959.19SunTrust Bank
    
    $
    34,897,959.19HSBC Bank USA, N.A.
    
    $
    29,081,632.65Royal Bank of Canada
    
    $
    29,081,632.65Comerica Bank
    
    $
    19,387,755.10The Northern Trust Company
    
    $
    15,510,204.09Wells Fargo Bank, N.A.
    
    $
    15,510,204.09Total:
    
    $
    950,000,000.00
 LETTER OF CREDIT COMMITMENTS
 Bank of America, National Association
    
    $
    100,000,000.00SunTrust Bank
    
    $
    100,000,000.00Total:
    
    $
    200,000,000.00
 4