##### 



Exhibit 10.8
 EXECUTION COPY
 TREASURY SECURED REVOLVING CREDIT AGREEMENT
 dated as of June 4, 2007
 among
 KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY
 THE LENDERS FROM TIME TO TIME PARTY HERETO
 and
 SUNTRUST BANK
 CITIBANK, N.A.
 
 SUNTRUST CAPITAL MARKETS, INC.
 CITIGROUP CAPITAL MARKETS




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##### 



TABLE OF CONTENTS
 PageARTICLE I DEFINITIONS; CONSTRUCTION
    
    
    1Section 1.1. Definitions
    
    
    1Section 1.2. Classifications of Loans and Borrowings
    
    
    19Section 1.3. Accounting Terms and Determination
    
    
    19Section 1.4. Terms Generally
    
    
    20ARTICLE II AMOUNT AND TERMS OF THE COMMITMENTS
    
    
    20Section 2.1. General Description of the Facility
    
    
    20Section 2.2. Revolving Loans
    
    
    20Section 2.3. Procedure for Borrowings
    
    
    21Section 2.4. Intentionally Omitted
    
    
    21Section 2.5. Funding of Borrowings
    
    
    21Section 2.6. Interest Elections
    
    
    22Section 2.7. Optional Reduction and Termination of Commitments
    
    
    23Section 2.8. Repayment of Loans
    
    
    23Section 2.9. Evidence of Indebtedness
    
    
    23Section 2.10. Prepayments
    
    
    24Section 2.11. Interest on Loans
    
    
    24Section 2.12. Fees
    
    
    25Section 2.13. Computation of Interest and Fees
    
    
    26Section 2.14. Inability to Determine Interest Rates
    
    
    26Section 2.15. Illegality
    
    
    26Section 2.16. Increased Costs
    
    
    27Section 2.17. Funding Indemnity
    
    
    28Section 2.18. Taxes
    
    
    28Section 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
    
    
    30Section 2.20. Intentionally Omitted
    
    
    31Section 2.21. Intentionally Omitted
    
    
    31Section 2.22. Mitigation of Obligations
    
    
    31Section 2.23. Replacement of Lenders
    
    
    31ARTICLE III CONDITIONS PRECEDENT TO LOANS
    
    
    32Section 3.1. Conditions To Effectiveness
    
    
    32Section 3.2. Each Credit Event
    
    
    34Section 3.3. Delivery of Documents
    
    
    35ARTICLE IV REPRESENTATIONS AND WARRANTIES
    
    
    35Section 4.1. Existence; Power
    
    
    35Section 4.2. Organizational Power; Authorization
    
    
    35Section 4.3. Governmental Approvals; No Conflicts
    
    
    35Section 4.4. Financial Statements
    
    
    36Section 4.5. Litigation and Environmental Matters
    
    
    36Section 4.6. Compliance with Laws and Agreements
    
    
    36Section 4.7. Investment Company Act, Etc
    
    
    36Section 4.8. Taxes
    
    
    37Section 4.9. Margin Regulations
    
    
    37




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##### 



PageSection 4.10. Underwriting Policies
    
    
    37Section 4.11. ERISA
    
    
    37Section 4.12. Ownership of Property
    
    
    37Section 4.13. Disclosure
    
    
    38Section 4.14. Labor Relations
    
    
    38Section 4.15. Subsidiaries
    
    
    38Section 4.16. Insolvency
    
    
    38Section 4.17. OFAC
    
    
    39Section 4.18. Patriot Act
    
    
    39ARTICLE V AFFIRMATIVE COVENANTS
    
    
    39Section 5.1. Financial Statements and Other Information
    
    
    39Section 5.2. Notices of Material Events
    
    
    41Section 5.3. Existence; Conduct of Business
    
    
    41Section 5.4. Compliance with Laws, Etc
    
    
    42Section 5.5. Payment of Obligations
    
    
    42Section 5.6. Books and Records
    
    
    42Section 5.7. Visitation, Inspection, Etc
    
    
    42Section 5.8. Maintenance of Properties; Insurance
    
    
    42Section 5.9. Use of Proceeds
    
    
    43Section 5.10. Maintenance of RIC Status and Business Development Company
    
    
    43Section 5.11. Additional Subsidiaries; Additional Collateral
    
    
    43Section 5.12. Compliance with Underwriting Policies
    
    
    43ARTICLE VI FINANCIAL COVENANTS
    
    
    43Section 6.1. Minimum Asset Coverage Ratio
    
    
    43Section 6.2. Minimum Liquidity
    
    
    43Section 6.3. Minimum Consolidated Shareholders Equity
    
    
    43Section 6.4. Cash Collateral Coverage Ratio
    
    
    44ARTICLE VII NEGATIVE COVENANTS
    
    
    44Section 7.1. Indebtedness and Preferred Equity
    
    
    44Section 7.2. Negative Pledge
    
    
    45Section 7.3. Fundamental Changes
    
    
    45Section 7.4. Restricted Payments
    
    
    46Section 7.5. Sale of Assets
    
    
    47Section 7.6. Transactions with Affiliates
    
    
    47Section 7.7. Restrictive Agreements
    
    
    47Section 7.8. Sale and Leaseback Transactions
    
    
    48Section 7.9. Hedging Transactions
    
    
    48Section 7.10. Accounting Changes
    
    
    48Section 7.11. Amendment to Material Documents
    
    
    49Section 7.12. Loans, Etc
    
    
    49ARTICLE VIII EVENTS OF DEFAULT
    
    
    49Section 8.1. Events of Default
    
    
    49ARTICLE IX THE ADMINISTRATIVE AGENT
    
    
    52Section 9.1. Appointment of Administrative Agent
    
    
    52Section 9.2. Nature of Duties of Administrative Agent
    
    
    52
 ii




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##### 



PageSection 9.3. Lack of Reliance on the Administrative Agent
    
    
    53Section 9.4. Certain Rights of the Administrative Agent
    
    
    53Section 9.5. Reliance by Administrative Agent
    
    
    53Section 9.6. The Administrative Agent in its Individual Capacity
    
    
    53Section 9.7. Successor Administrative Agent
    
    
    54Section 9.8. Authorization to Execute other Loan Documents
    
    
    54Section 9.9. Documentation Agent; Syndication Agent
    
    
    54ARTICLE X MISCELLANEOUS
    
    
    54Section 10.1. Notices
    
    
    54Section 10.2. Waiver; Amendments
    
    
    57Section 10.3. Expenses; Indemnification
    
    
    58Section 10.4. Successors and Assigns
    
    
    59Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process
    
    
    62Section 10.6. WAIVER OF JURY TRIAL
    
    
    63Section 10.7. Right of Setoff
    
    
    63Section 10.8. Counterparts; Integration
    
    
    64Section 10.9. Survival
    
    
    64Section 10.10. Severability
    
    
    64Section 10.11. Confidentiality
    
    
    64Section 10.12. Interest Rate Limitation
    
    
    65Section 10.13. Waiver of Effect of Corporate Seal
    
    
    65Section 10.14. Patriot Act
    
    
    65Section 10.15. NO ORAL AGREEMENTS, WAIVER
    
    
    66
 iii




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##### 



Schedules
 Schedule I
    
    -
    
    Commitment AmountsSchedule II
    
    -
    
    Investment Credit AgreementSchedule 4.5
    
    -
    
    Environmental MattersSchedule 4.14
    
    -
    
    SubsidiariesSchedule 7.1
    
    -
    
    Outstanding IndebtednessSchedule 7.2
    
    -
    
    Existing Liens
 Exhibits
 Exhibit A
    
    -
    
    Form of Revolving NoteExhibit C
    
    -
    
    Form of Assignment and AcceptanceExhibit D
    
    -
    
    Form of Subsidiary GuaranteeExhibit 2.3
    
    -
    
    Form of Notice of Revolving BorrowingExhibit 2.6(b)
    
    -
    
    Form of Continuation/ConversionExhibit 3.1(c)(viii)
    
    
    
    Form of Responsible Officers CertificateExhibit 5.1(c)
    
    -
    
    Form of Compliance Certificate
 iv




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##### 



TREASURY SECURED REVOLVING CREDIT AGREEMENT
 THIS TREASURY SECURED REVOLVING CREDIT AGREEMENT Agreement Borrower Lenders Administrative Agent Syndication Agent
 W I T N E S S E T H:
 WHEREAS,
 WHEREAS Schedule II Investment Lenders Investment Credit Agreement
 WHEREAS
 NOW, THEREFORE
 ARTICLE I
 DEFINITIONS; CONSTRUCTION
 Section 1.1. Definitions
 90-Day Treasury Securities
 Adjusted Borrowing Base minus
 Adjusted Covered Debt Amount minus




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##### 



Adjusted LIBO Rate minus
 Administrative Agent
 Administrative Questionnaire
 Affiliate
 Aggregate Commitment Amount
 Aggregate Commitment
  Applicable Lending Office
 Applicable Margin
 Applicable Percentage
 Approved Brokerage Account
 Approved Fund
 2




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##### 



Asset Coverage Ratio
 Assignment and Acceptance Section
10.4(b) Exhibit C
 Availability Period
 Base Rate plus
 Borrower
  Borrowing
 Borrowing Base
 Business Day
 Capital Lease Obligations
 3




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##### 



Capital Stock
 Cash
 Cash Collateral
 Cash Collateral Coverage Ratio
 Cash Equivalents
   provided
  provided
 4




---



##### 



Change in Control
 Change in Law Section 2.16 b
 Class
 Clearing Account
 Closing Date Section
3.1 Section 3.2 Section
10.2
 Code
 Commitment
 Commitment Termination Date Section 2.7
 5




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##### 



Compliance Certificate Exhibit 5.1(c)
 Contractual Obligation
 Control Agreement
 Covered Debt Amount
 Credit Exposure
 Default
 Default Interest Section 2.11 c
 Distributable Cash Flow
 Dollar(s) $
 Eligible Assignee Section 10.4
 Environmental Laws
 6




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##### 



Environmental Liability
 Equity Interests
 ERISA
 ERISA Affiliate
 ERISA Event 
 Eurodollar
 Eurodollar Reserve Percentage th
 7




---



##### 



Event of Default
  Excluded Taxes Section 2.18 e
 Federal Funds Rate th
 Fee Letter
 Fiscal Quarter
 Fiscal Year
 Foreign Lender
 8




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##### 



GAAP Section 1.3
 Governmental Authority
 Guarantee guarantor primary obligor provided
 Hazardous Materials
 Hedging Obligations
 Hedging Transaction
 9




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##### 



Indebtedness
 Indemnified Taxes
 Information Memorandum
 Intercreditor Agreement
 Interest Period provided,
  10




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##### 



Investment Advisory Agreement
 Investment Company Act
 Investment Credit Agreement
 Investment Credit Facility Collateral
 Investment Lenders
 Investment Revolving Commitment Schedule
I
 Investment Revolving Commitment Amount
 Revolving Credit Exposure
 Investment Revolving Loans
 LC Exposure
 11




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##### 



Lenders
 LIBOR provided th
 Lien
 Loan Documents
 Loan Parties
 Loans
 Material Adverse Effect
 12




---



##### 



Material Indebtedness
 Moodys
 Multiemployer Plan
 Net Mark to Market Exposure
 Notes
 Notice of Conversion/Continuation Section 2.6 b
 Notice of Revolving Borrowing Section 2.3
 Obligations
 13




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##### 



Off-Balance Sheet Liabilities
 OSHA
 Other Lock-up Agreement Section 7.7
 Other Taxes
 Participant Section 10.4(d)
 Payment Office
 PBGC 
 Permitted Encumbrances
     14




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##### 



provided
  provided
 Person
 Plan
 Portfolio Investment
 Pro Rata Share
 15




---



##### 



Register c Section
10.4
 Regulation D
 Related Parties
 Release
 Required Lenders
 Requirement of Law
 Responsible Officer
  Restricted Payment 
 Revolving Commitment Schedule I
 16




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##### 



Revolving Commitment Amount
 Revolving Commitment Termination Date Section 2.7
 Revolving Credit Exposure
 Revolving Credit Note Exhibit A
 Revolving Loan
 RIC Regulated Investment Company 
 Right of First Offer
 S&P
 Security Agreement
 Security Documents
 Securities
 17




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##### 



Securities Act
 Shareholders Equity
 Special Purpose Subsidiary
 Subsidiary parent
 Subsidiary Guarantee Agreement
 Subsidiary Guarantor Section
5.11
 Swingline Exposure
 Syndication Agent
 Synthetic Lease
 18




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##### 



Synthetic Lease Obligations
 Tag Along Rights
 Taxes
 Type
 Underwriting Policies
 Uniform Commercial Code UCC
 U.S. Government Securities
 Withdrawal Liability
 Section 1.2. Classifications of Loans and Borrowings
 Section 1.3. Accounting Terms and Determination
 19




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##### 



Section 5.1 a provided
 Section 1.4. Terms Generally
 ARTICLE II
 AMOUNT AND TERMS OF THE COMMITMENTS
 Section 2.1. General Description of the Facility Section 2.2 Section
2.3 provided
 Section 2.2. Revolving Loans
 20




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##### 



provided Section 5.10
 Section 2.3. Procedure for Borrowings Exhibit 2.3 Notice of Revolving Borrowing
 Section 2.4. Intentionally Omitted
 Section 2.5. Funding of Borrowings
   21




---



##### 



Section 2.6. Interest Elections .
 Section
2.6
 Section 2.6 Exhibit 2.6(b) Notice of
Conversion/Continuation
 22




---



##### 



Section 2.3
   Section 2.7. Optional Reduction and Termination of Commitments .
  provided Section 2.7
 Section 2.8. Repayment of Loans .
 Section 2.9. Evidence of Indebtedness Section 2.6 Section 2.6
 23




---



##### 



prima facie provided
  Section 2.10. Prepayments
 Section 2.11(c provided Section 2.17 Section
2.2
 Section 2.7 Section 2.17
 Section 5.10
 Section 2.11. Interest on Loans .
  24




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##### 



plus
 Default Interest plus plus
   Section 2.12. Fees
     25




---



##### 



provided further
 Section 2.13. Computation of Interest and Fees .
  Section 2.14. Inability to Determine Interest Rates
 )
  .
 Section 2.15. Illegality .
 26




---



##### 



Section 2.16. Increased Costs
      Section 2.16
 27




---



##### 



Section 2.16
 Section 2.17. Funding Indemnity Section 2.17
 Section 2.18. Taxes .
 provided, Section 2.18
  Section
2.18
 28




---



##### 



or
 29




---



##### 



Section 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set-offs .
 Section 2.16 2.17 2.18 Sections 2.16 2.17 2.18 10.3
  provided,
 30




---



##### 



2.19 d e 2.18 d 10.3 d
 Section 2.20. Intentionally Omitted .
 Section 2.21. Intentionally Omitted .
 Section 2.22. Mitigation of Obligations. Section 2.16 Section 2.18 Section 2.16 Section
2.18
 Section 2.23. Replacement of Lenders Section 2.16 Section 2.18 Section 10.4(b provided
 31




---



##### 



Section
2.16 Section 2.18
 ARTICLE III
 CONDITIONS PRECEDENT TO LOANS
 Section 3.1. Conditions To Effectiveness Section 10.2
        32




---



##### 



Exhibit 3.1(b)(vii)
   Exhibit 3.1(c)(x) Section 4.4
   33




---



##### 



Section
5.1(c) Article VI
      Section 3.2. Each Credit Event.
      34




---



##### 



Section 3.2
 Section 3.3. Delivery of Documents
 ARTICLE IV
 REPRESENTATIONS AND WARRANTIES
  Section 4.1. Existence; Power
 Section 4.2. Organizational Power; Authorization
 Section 4.3. Governmental Approvals; No Conflicts
 35




---



##### 



Section 4.4. Financial Statements
 Section 4.5. Litigation and Environmental Matters
  Schedule 4.5
 Section 4.6. Compliance with Laws and Agreements
 Section 4.7. Investment Company Act, Etc.
 36




---



##### 



Section 4.8. Taxes
 Section 4.9. Margin Regulations
 Section 4.10. Underwriting Policies
 Section 4.11. ERISA
 Section 4.12. Ownership of Property
 Section 4.4
 37




---



##### 



Section 4.13. Disclosure
 Section 4.14. Labor Relations
 Section 4.15. Subsidiaries Schedule 4.14
 Section 4.16. Insolvency
 38




---



##### 



Section 4.17. OFAC
 Section 4.18. Patriot Act
 ARTICLE V
 AFFIRMATIVE COVENANTS
  Section 5.1. Financial Statements and Other Information
 provided
 39




---



##### 



provided
     40




---



##### 



Section 5.2. Notices of Material Events
       Section 5.2
 Section 5.3. Existence; Conduct of Business
 41




---



##### 



provided Section
5.3 Section 7.3
 Section 5.4. Compliance with Laws, Etc.
 Section 5.5. Payment of Obligations.
 Section 5.6. Books and Records
 Section 5.7. Visitation, Inspection, Etc. provided, however, provided, however
 Section 5.8. Maintenance of Properties; Insurance
 42




---



##### 



Section 5.9. Use of Proceeds
 Section 5.10. Maintenance of RIC Status and Business Development Company
 Section 5.11. Additional Subsidiaries; Additional Collateral
 Section 5.12. Compliance with Underwriting Policies
 ARTICLE VI
 FINANCIAL COVENANTS
  Section 6.1. Minimum Asset Coverage Ratio
 Section 6.2. Minimum Liquidity
 Section 6.3. Minimum Consolidated Shareholders Equity plus
 43




---



##### 



Section 6.4. Cash Collateral Coverage Ratio
 ARTICLE VII
 NEGATIVE COVENANTS
  Section 7.1. Indebtedness and Preferred Equity
  Schedule 7.1
   Section 7.9
      44




---



##### 



Section 7.2. Negative Pledge
 provided however Section 2.19
  Schedule 7.2 provided
   Section 7.3. Fundamental Changes .
 provided , provided provided Section 7.4
 45




---



##### 



Section 7.4. Restricted Payments
       minus
  46




---



##### 



Section 7.5. Sale of Assets Section 5.1
 Section 7.6. Transactions with Affiliates
 Section 7.7. Restrictive Agreements provided
 47




---



##### 



Lock-up Agreement
 Section 7.8. Sale and Leaseback Transactions
 Section 7.9. Hedging Transactions .
 Section 7.10. Accounting Changes
 48




---



##### 



Section 7.11. Amendment to Material Documents
 Section 7.12. Loans, Etc plus minus
 ARTICLE VIII
 EVENTS OF DEFAULT
 Section 8.1. Events of Default . Event of
Default
  Section 8.1
  49




---



##### 



Sections 5.1, 5.2 5.3 Articles VI VII
   Section 8.1
  50




---



##### 



Section 8.1 :
 51




---



##### 



ARTICLE IX
 THE ADMINISTRATIVE AGENT
 Section 9.1. Appointment of Administrative Agent
 Section 9.2. Nature of Duties of Administrative Agent Section 10.2 Section 10.2
 52




---



##### 



Section 9.3. Lack of Reliance on the Administrative Agent
 Section 9.4. Certain Rights of the Administrative Agent
 Section 9.5. Reliance by Administrative Agent
 Section 9.6. The Administrative Agent in its Individual Capacity
 53




---



##### 



Section 9.7. Successor Administrative Agent
  Section 9.7 th
 Section 9.8. Authorization to Execute other Loan Documents
 Section 9.9. Documentation Agent; Syndication Agent
 ARTICLE X
 MISCELLANEOUS
 Section 10.1. Notices .
 Written Notices
 54




---



##### 



To the Borrower:
    
    Kayne Anderson Energy Development Company717 Texas Avenue, Suite 3100Houston, Texas 77002Attention: Terry HartTelecopy Number: (713) 655-7359With a copy to:
    
    Paul, Hastings, Janofsky & Walker LLP55 Second StreetSan Francisco, California 94105Attention: Kevin FisherTelecopy Number: (415) 856-7100To the Administrative Agent:
    
    SunTrust Bank303 Peachtree Street, N. E.Atlanta, Georgia 30308Attention: Sean DrinanTelecopy Number: (404) 827-6514With a copy to:
    
    SunTrust Bank Agency Services303 Peachtree Street, N. E./25th FloorAtlanta, Georgia 30308Attention: Ms. Doris FolsumTelecopy Number: (404) 658-4906; andKing & Spalding LLP1180 Peachtree Street, NEAtlanta, Georgia 30309Attention: W. Todd HollemanTelecopy Number: (404) 572-5100To any other Lender:
    
    the address set forth in the Assignment and Acceptance executed by such Lender
 Section 10.1
 55




---



##### 



Electronic Communications
 provided Article 2 provided
 provided
  56




---



##### 



Section 10.2. Waiver; Amendments .
 , Section 10.2
 provided Section 2.19 (b) Section 10.2 Section
3.2(d) Section 6.4 provided further
 57




---



##### 



Sections 2.16 2.17 2.18 10.3
 Section 10.3. Expenses; Indemnification .
 , Section 10.3
 Indemnitee provided
 58




---



##### 



provided
  Section 10.3
 Section 10.4. Successors and Assigns .
  provided
 59




---



##### 



Minimum Amounts
   Proportionate Amounts pro rata
 Required Consents
   Assignment and Acceptance
 No Assignment to Borrower
 No Assignment to Natural Persons
 60




---



##### 



Section 10.4 2.16 2.17 2.18 10.3 Section 10.4
 Register Section
 Participant provided
  61




---



##### 



provided Section 2.19(b) (c) Section 10.4 Section 10.4 2.16 2.17 2.18 Section 10.4 Section 10.7 Section 2.19
 Section
2.16 Section 2.18 Section 2.18 Section 2.18(e)
 provided
 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process .
   62




---



##### 



Section 10.5 Section 10.5
 Section 10.1
 Section 10.6. WAIVER OF JURY TRIAL SECTION 10.8
 Section 10.7. Right of Setoff
 63




---



##### 



provided
 Section 10.8. Counterparts; Integration
 Section 10.9. Survival Sections 2.16 2.17 2.18 10.3
 Section 10.10. Severability
 Section 10.11. Confidentiality
 64




---



##### 



Section
10.11 Section 10.11 Section 10.11
 Section 10.12. Interest Rate Limitation Charges Maximum Rate Section 10.12
 Section 10.13. Waiver of Effect of Corporate Seal.
 Section 10.14. Patriot Act .
 65




---



##### 



Section 10.15. NO ORAL AGREEMENTS, WAIVER
  (remainder of page left intentionally blank)
 66




---



##### 



IN WITNESS WHEREOF
 KAYNE ANDERSON ENERGYDEVELOPMENT COMPANYBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



SUNTRUST BANK, as AdministrativeAgent and as a LenderBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



CITIBANK, N.A., as Syndication Agent and as a LenderBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



LANDESBANK BADEN-WUERTTEMBERG,as Co-Documentation Agent and as a LenderBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



BMO CAPITAL MARKETS FINANCING, INC., as a LenderBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



BMO CAPITAL MARKETS, as Co-Documentation AgentBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



CUSTODIAL TRUST COMPANY, as a LenderBy:Name:Title:
 [SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



MERRILL LYNCH BANK USA, as a LenderBy:Name:Title:
 SIGNATURE
PAGE TO TREASURY SECURED REVOLVING CREDIT AGREEMENT]




---



##### 



Schedule I
 COMMITMENT AMOUNTS
 SunTrust Bank
    
    $
    8,500,000Citibank, N.A.
    
    $
    8,500,000Landesbank Baden-Wuerttemberg
    
    $
    48,000,000BMO Capital Markets Financing, Inc.
    
    $
    20,000,000Custodial Trust Company
    
    $
    10,000,000Merrill Lynch Bank USA
    
    $
    5,000,000




---



##### 



SCHEDULE 4.5
 ENVIRONMENTAL MATTERS




---



##### 



SCHEDULE 4.14
 SUBSIDIARIES
 Company
    
    Owner
    
    
    Ownership Interests




---



##### 



SCHEDULE 7.1
 OUTSTANDING INDEBTEDNESS




---



##### 



SCHEDULE 7.2
 EXISTING LIENS




---



##### 



EXHIBIT A  FORM OF REVOLVING CREDIT NOTE
 [$]
    
    Atlanta, GeorgiaJune 4, 2007
 Borrower [ name of Lender ] Lender SunTrust Credit
Agreement [ amount of such Lenders
Revolving Commitment ]
  provided ,
  A-1




---



##### 



KAYNE ANDERSON ENERGY
DEVELOPMENT COMPANYBy:Name:Title: [SIGNATURE PAGE TO REVOLVING CREDIT NOTE]




---



##### 



LOANS AND PAYMENTS
 UnpaidPrincipal
    
    Name of PersonAmount and
    
    Payments of
    
    Balance of
    
    MakingDate
    
    Type of Loan
    
    Principal
    
    Note
    
    Notation
 A-3




---



##### 



EXHIBIT C  FORM OF ASSIGNMENT AND ACCEPTANCE
 [date to be supplied]
 Credit Agreement
 [ name of assignor] Assignor [ name of assignee] Assignee Assigned Interest
   C-1




---



##### 



Effective Date
 C-2




---



##### 



Percentage Assigned ofRevolving Commitment (setforth, to at least 8 decimals, asa percentage of the aggregatePrincipal Amount
    
    Revolving Commitments of allFacility
    
    Assigned
    
    Lenders thereunder)Revolving Loans:
    
    $
    
    
    
    %
  [Name of Assignor], as AssignorBy:Name:Title:[Name of Assignee], as AssigneeBy:Name:Title: C-3




---



##### 



1
 KAYNE ANDERSON ENERGY 
DEVELOPMENT COMPANY
    
    
    
    SunTrust Bank, as Administrative Agent:By:
    
    
    
    
    
    By:Name:
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    Title:
 
 1
    
    Consents to be included to the extent
required by Section 10.4(b) of the Credit Agreement. [SIGNATURE PAGE TO ASSIGNMENT AND ACCEPTANCE]




---



##### 



EXHIBIT D  SUBSIDIARY GUARANTY AGREEMENT
 THIS SUBSIDIARY GUARANTY AGREEMENT Agreement Borrower Schedule I Guarantor Guarantors Administrative Agent Lenders Credit Agreement
 W I T N E S S E T H:
 WHEREAS
 WHEREAS
 WHEREAS
 NOW, THEREFORE
 Section 1. Guarantee
 D-1




---



##### 



Specified Hedge Provider Secured
Parties Secured Party Guaranteed Obligations
 Section 2. Obligations Not Waived Hedging
Document
 Section 3. Guarantee of Payment
 Section 4. No Discharge or Diminishment of Guarantee
 D-2




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Section 5. Defenses of Borrower Waived
 Section 6. Agreement to Pay; Subordination
 D-3




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Section 7. Information
 Section 8. Indemnity and Subrogation Section 6
 Section 9. Contribution and Subrogation Contributing
Guarantor Section 6 Claiming Guarantor Section 8 Section 21 Section 9 Section
8
 Section 10. Subordination Section 8 Section 9
 D-4




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Section 11. Representations and Warranties
 Section 12. Termination
 Section 13. Binding Effect; Several Agreement; Assignments
 Section 14. Waivers; Amendment
  D-5




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Section 15. Notices Schedule I
 Section 16. Severability
 Section 17. Counterparts; Integration Section 13 Section 13
 Section 18. Rules of Interpretation
 Section 19. Governing Law; Jurisdiction; Consent to Service of Process
 D-6




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[State]
    Section 20. Waiver of Jury Trial
 D-7




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Section 21. Additional Guarantors Annex 1
 Section 22. Right of Setoff Section 22
 Section 23. Savings Clause
  et seq. Bankruptcy
Code
  D-8




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Avoidance Provisions Section 23(a)(i) (ii) (iii)
 Section 23 Section 23
 Signatures Follow
 D-9




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IN WITNESS WHEREOF
 KED MME Investment Partners, LPByName:Title:KED MME Investment GP, LLCByName:Title:KED LCP Investment Partners, LPByName:Title:KED LCP Investment GP, LLCByName:Title:KED DF Investment Partners, LPByName:Title: [SIGNATURE PAGE TO SUBSIDIARY GUARANTY AGREEMENT]




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KED DF Investment GP, LLCByName:Title:KED VP Investment Partners, LPByName:Title:KED VP Investment GP, LLCByName:Title:KAYNE ANDERSON ENERGY DEVELOPMENT COMPANYByName:Title: D-12




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SUNTRUST BANK, asAdministrative AgentByName:Title:
 [SIGNATURE PAGE TO SUBSIDIARY GUARANTY AGREEMENT]




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SCHEDULE I TO THE
SUBSIDIARY GUARANTY AGREEMENT
 Guarantor(s)
    
    AddressKayne Anderson Energy Development Company
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED MME Investment Partners, LP
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED MME Investment GP, LLC
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED LCP Investment Partners, LP
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED LCP Investment GP, LLC
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED DF Investment Partners, LP
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED DF Investment GP, LLC
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED VP Investment Partners, LP
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002KED VP Investment GP, LLC
    
    717 Texas Avenue, Suite 3100,
Houston, TX, 77002
 D-12




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ANNEX 1
 SUPPLEMENT
NO.  Guaranty Agreement Borrower Schedule I Guarantor Guarantors Administrative Agent
 Credit
Agreement Lenders
  New Guarantor
  Joinder
 Representations and Warranties.
 D-13




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Binding Effect.
 Governing Law.
 Execution in Counterparts.
 Notices to New Guarantor. .
 Signatures Follow
 D-14




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IN WITNESS WHEREOF
 [NAME OF NEW GUARANTOR]ByName:Title:Address:SUNTRUST BANK, as
Administrative AgentByName:Title:




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##### 



EXHIBIT 2.3  FORM OF NOTICE OF REVOLVING BORROWING
  
  Credit Agreement
 (A)
    
    Aggregate principal amount of Revolving
Borrowing1:(B)
    
    Date of Revolving Borrowing (which is a Business
Day)2:(C)
    
    Interest Rate
basis3:(D)
    
    Interest
Period4:(E)
    
    Location and number of Borrowers account to which proceeds of Revolving
Borrowing are to be disbursed:
 
 1
    
    Not less than $1,000,000 and an integral
multiple of $250,000 for Eurodollar borrowing and not less than $250,000 and an
integer multiple of $100,000 for Base Rate Borrowing.2
    
    With respect to Base Rate Borrowings, notice
must be given prior to 11:00 a.m. (New York time) on the day of borrowing, and
with respect to Eurodollar Borrowings, notice must be given prior to 2:00 p.m.
(New York time) no later than three (3) business days prior to the date of
borrowing.3
    
    Eurodollar Borrowing or Base Rate Borrowing.4
    
    Which must comply with the definition of
Interest Period and end not later than the Revolving Commitment
Termination Date.




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Very truly yours,KAYNE ANDERSON ENERGY
DEVELOPMENT COMPANYBy:Name:Title: [SIGNATURE
PAGE TO NOTICE OF REVOLVING BORROWING]




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EXHIBIT 2.6(b)  FORM OF CONTINUATION/CONVERSION
  
  Credit Agreement
 (A)
    
    Revolving Borrowing to which this request applies:(B)
    
    Principal amount of Revolving Borrowing to be converted/continued:(C)
    
    Effective date of election (which is a Business Day):(D)
    
    Interest rate basis:(E)
    
    Interest Period:




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Very truly yours,KAYNE ANDERSON ENERGY DEVELOPMENT COMPANYBy:Name:Title: [SIGNATURE PAGE TO CONTINUATION/CONVERSION]




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EXHIBIT 3.1(c)(x)  FORM OF RESPONSIBLE OFFICERS CERTIFICATE
 Credit Agreement Borrower
 [   ]
   [ the date ]




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Name:Title:
 [SIGNATURE PAGE TO RESPONSIBLE OFFICERS CERTIFICATE]




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EXHIBIT 5.1(c)  FORM OF COMPLIANCE CERTIFICATE
  To:
    
    SunTrust Bank, as Administrative Agent303 Peachtree St., N.E.Atlanta, GA 30308Attention:
  Credit Agreement Borrower
 [chief executive officer][chief financial officer]
 [ quarter ][ year ]   [ quarter ][ year ] [ quarter ][ year ]
 Attachment 1




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Name:Title:




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Attachment to Compliance Certificate