Document:

exv10w19

Exhibit 10.19

 

CREDIT AGREEMENT

dated as of December 23, 2008

among

ENEXUS ENERGY CORPORATION,

as Borrower,

THE LENDERS AND ISSUERS PARTY HERETO,

CITIGROUP GLOBAL MARKETS INC.

and

GOLDMAN SACHS LENDING PARTNERS LLC,

as Joint Book Runners and Joint Lead Arrangers,

BNP PARIBAS,

as Administrative Agent,

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK,

as Collateral Agent,

and

MIZUHO CORPORATE BANK, LTD.,

as Syndication Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Defined Terms
	 	 	1	 
	Section 1.02. Terms Generally
	 	 	36	 
	Section 1.03. Classification of Loans and Borrowings
	 	 	37	 
	Section 1.04. Pro Forma Calculations
	 	 	37	 
	Section 1.05. Exchange Rates
	 	 	37	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	38	 
	 
	 	 	 	 
	Section 2.01. Commitments
	 	 	38	 
	Section 2.02. Borrowing Procedures
	 	 	38	 
	Section 2.03. Letters of Credit
	 	 	39	 
	Section 2.04. Repayment of Loans; Evidence of Debt
	 	 	44	 
	Section 2.05. Fees
	 	 	45	 
	Section 2.06. Interest on Loans
	 	 	46	 
	Section 2.07. Default Interest
	 	 	46	 
	Section 2.08. Interest Rate Unascertainable, Inadequate or Unfair
	 	 	47	 
	Section 2.09. Voluntary Termination and Reduction of Commitments
	 	 	47	 
	Section 2.10. Conversion and Continuation of Borrowings
	 	 	48	 
	Section 2.11. Optional Prepayments
	 	 	49	 
	Section 2.12. Mandatory Prepayments and Commitment Reduction
	 	 	49	 
	Section 2.13. Payments and Computations
	 	 	52	 
	Section 2.14. Reserve Requirements; Change in Circumstances
	 	 	54	 
	Section 2.15. Change in Legality
	 	 	55	 
	Section 2.16. Indemnity
	 	 	56	 
	Section 2.17. Pro Rata Treatment
	 	 	56	 
	Section 2.18. Sharing of Setoffs
	 	 	57	 
	Section 2.19. Taxes
	 	 	57	 
	Section 2.20. Assignment of Commitments Under Certain Circumstances; Duty to
Mitigate
	 	 	60	 
	Section 2.21. Incremental Facilities
	 	 	61	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	63	 
	 
	 	 	 	 
	Section 3.01. Organization; Powers
	 	 	63	 
	Section 3.02. Authorization; No Conflicts
	 	 	63	 
	Section 3.03. Enforceability
	 	 	63	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.04. Approvals
	 	 	64	 
	Section 3.05. Financial Statements
	 	 	64	 
	Section 3.06. No Material Adverse Effect
	 	 	65	 
	Section 3.07. Title to Properties; Possession Under Leases
	 	 	65	 
	Section 3.08. Subsidiaries
	 	 	65	 
	Section 3.09. Litigation; Compliance with Laws
	 	 	66	 
	Section 3.10. Contractual Obligations
	 	 	66	 
	Section 3.11. Federal Reserve Regulations
	 	 	67	 
	Section 3.12. Investment Company Act
	 	 	67	 
	Section 3.13. Use of Proceeds
	 	 	67	 
	Section 3.14. Tax Returns
	 	 	67	 
	Section 3.15. Disclosure
	 	 	68	 
	Section 3.16. Employee Benefit Plans
	 	 	68	 
	Section 3.17. Environmental Matters
	 	 	68	 
	Section 3.18. Insurance
	 	 	69	 
	Section 3.19. Security Documents
	 	 	69	 
	Section 3.20. Location of Real Property
	 	 	70	 
	Section 3.21. Labor Matters
	 	 	71	 
	Section 3.22. Intellectual Property
	 	 	71	 
	Section 3.23. Energy Regulation
	 	 	71	 
	Section 3.24. Solvency
	 	 	72	 
	Section 3.25. Nuclear Operations Compliance
	 	 	73	 
	Section 3.26. Separation Transactions
	 	 	73	 
	Section 3.27. Segregation of Cash Management and Business Operations
	 	 	73	 
	Section 3.28. Patriot Act
	 	 	74	 
	 
	 	 	 	 
	ARTICLE IV Conditions Precedent
	 	 	74	 
	 
	 	 	 	 
	Section 4.01. All Credit Events
	 	 	74	 
	Section 4.02. Conditions Precedent to Signing Date
	 	 	75	 
	Section 4.03. Conditions Precedent to Funds Availability Date
	 	 	77	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	84	 
	 
	 	 	 	 
	Section 5.01. Corporate Existence
	 	 	84	 
	Section 5.02. Compliance with Laws
	 	 	84	 
	Section 5.03. Insurance
	 	 	84	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 5.04. Payment of Obligations
	 	 	85	 
	Section 5.05. Financial Statements, Reports, etc
	 	 	85	 
	Section 5.06. Litigation and Other Notices
	 	 	88	 
	Section 5.07. Information Regarding Collateral
	 	 	88	 
	Section 5.08. Maintaining Records; Access to Properties and Inspections;
Environmental Assessments
	 	 	89	 
	Section 5.09. Use of Proceeds
	 	 	90	 
	Section 5.10. Additional Collateral, etc
	 	 	90	 
	Section 5.11. Further Assurances
	 	 	92	 
	Section 5.12. Maintenance of Properties
	 	 	93	 
	Section 5.13. Corporate Separateness
	 	 	93	 
	Section 5.14. Maintenance of Ratings
	 	 	94	 
	Section 5.15. Key Contracts and Joint Venture Agreements
	 	 	94	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants
	 	 	94	 
	 
	 	 	 	 
	Section 6.01. Indebtedness and Preferred Stock
	 	 	94	 
	Section 6.02. Liens
	 	 	98	 
	Section 6.03. Limitation on Sale and Leaseback Transactions
	 	 	102	 
	Section 6.04. Mergers, Consolidations and Sales of Assets
	 	 	102	 
	Section 6.05. Limitation on Investments
	 	 	103	 
	Section 6.06. Limitation on Dividends
	 	 	105	 
	Section 6.07. Limitations on Debt Payments; Restrictive Agreements
	 	 	107	 
	Section 6.08. Transactions with Affiliates
	 	 	110	 
	Section 6.09. Business Activities
	 	 	111	 
	Section 6.10. Other Indebtedness and Agreements
	 	 	111	 
	Section 6.11. Designation of Restricted, Unrestricted and Immaterial Subsidiaries

	 	 	111	 
	Section 6.12. Consolidated Interest Coverage Ratio
	 	 	112	 
	Section 6.13. Consolidated Total Leverage Ratio
	 	 	112	 
	Section 6.14. Fiscal Year
	 	 	112	 
	Section 6.15. No Speculative Hedging Transactions
	 	 	112	 
	Section 6.16. Specified Commodity Hedging Transactions
	 	 	113	 
	 
	 	 	 	 
	ARTICLE VII Events of Default
	 	 	113	 
	 
	 	 	 	 
	Section 7.01. Signing Date Events of Default
	 	 	113	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 7.02. Funds Availability Date Events of Default
	 	 	114	 
	Section 7.03. Remedies
	 	 	116	 
	Section 7.04. Application of Funds
	 	 	116	 
	 
	 	 	 	 
	ARTICLE VIII The Agents and the Arrangers
	 	 	117	 
	 
	 	 	 	 
	Section 8.01. Authorization and Action
	 	 	117	 
	Section 8.02. Obligation of Arrangers
	 	 	118	 
	Section 8.03. Agents’ Reliance, Etc
	 	 	118	 
	Section 8.04. Posting of Approved Electronic Communications
	 	 	119	 
	Section 8.05. The Agents Individually
	 	 	120	 
	Section 8.06. Lender Credit Decision
	 	 	120	 
	Section 8.07. Indemnification
	 	 	121	 
	Section 8.08. Successor Administrative Agent
	 	 	121	 
	Section 8.09. Withholding of Taxes
	 	 	122	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	122	 
	 
	 	 	 	 
	Section 9.01. Notices
	 	 	122	 
	Section 9.02. Survival of Agreement
	 	 	123	 
	Section 9.03. Binding Effect
	 	 	124	 
	Section 9.04. Successors and Assigns
	 	 	124	 
	Section 9.05. Expenses; Indemnity
	 	 	128	 
	Section 9.06. Right of Setoff
	 	 	129	 
	Section 9.07. Applicable Law
	 	 	129	 
	Section 9.08. Waivers; Amendment; Replacement of Non-Consenting Lenders
	 	 	129	 
	Section 9.09. Interest Rate Limitation
	 	 	131	 
	Section 9.10. Entire Agreement
	 	 	131	 
	Section 9.11. WAIVER OF JURY TRIAL
	 	 	131	 
	Section 9.12. Severability
	 	 	132	 
	Section 9.13. Counterparts
	 	 	132	 
	Section 9.14. Headings
	 	 	132	 
	Section 9.15. Jurisdiction; Consent to Service of Process
	 	 	132	 
	Section 9.16. Confidentiality
	 	 	133	 
	Section 9.17. Mortgage Modifications
	 	 	133	 
	Section 9.18. Patriot Act Notice
	 	 	134	 

iv

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 9.19. No Fiduciary Duty
	 	 	134	 
	Section 9.20. Termination
	 	 	135	 

v

 

TABLE OF CONTENTS

(continued)

Exhibits, Schedules and Annexes

	 	 	 
	Exhibit A

	 	Form of Administrative Questionnaire
	Exhibit B

	 	Form of Intercompany Debt Subordination Agreement
	Exhibit C

	 	Form of Assignment and Acceptance
	Exhibit D

	 	Form of Borrowing Request
	Exhibit E

	 	Form of Letter of Credit Request
	Exhibit F

	 	Form of Notice of Continuation or Conversion
	Exhibit G

	 	Form of Non-Bank Certificate
	Exhibit H

	 	Form of Note
	Exhibit I

	 	Joinder Agreement
	Exhibit I-1-A

	 	Signing Date Legal Opinion of Skadden, Arps
	Exhibit I-1-B

	 	Signing Date Opinion of Internal Counsel
	Exhibit I-2-A

	 	Funds Availability Date Opinions of Skadden, Arps (including UCC and FERC Opinions)
	 
	 	 
	Exhibit I-2-B

	 	Funds Availability Date Opinion of Internal Counsel
	Exhibit J

	 	Vermont Local Counsel Opinion (Regulatory and Real Estate)
	Exhibit K

	 	Massachusetts Local Counsel Opinion (Corporate, Regulatory and Real Estate)
	 
	 	 
	Exhibit L

	 	New York Local Counsel Opinion (Regulatory)
	Exhibit M

	 	Michigan Local Counsel Opinion (Regulatory and Real Estate)
	Exhibit N

	 	Arkansas Local Counsel Opinion (Corporate)
	Exhibit O

	 	Form of Guarantee and Collateral Agreement
	Exhibit P

	 	Form of Mortgage
	Exhibit P-1

	 	Michigan Form of Mortgage
	Exhibit P-2

	 	Massachusetts Form of Mortgage
	Exhibit P-3

	 	Vermont Form of Mortgage
	Exhibit Q

	 	Form of Compliance Certificate
	Exhibit R

	 	Form of Separation and Distribution Agreement
	Exhibit S

	 	Form of Limited Liability Company Agreement of EquaGen
	Exhibit T

	 	Description of Senior Notes
	 
	 	 
	Schedule 1.01(a)

	 	Core Assets and Core Asset Subsidiaries
	Schedule 1.01(b)

	 	Key Contracts
	Schedule 1.01(c)

	 	Permitted Dispositions
	Schedule 1.01(d)

	 	Material Contracts
	Schedule 2.01

	 	Commitments
	Schedule 3.07

	 	Mortgaged Property
	Schedule 3.08

	 	Subsidiaries
	Schedule 3.09(a) (Signing)

	 	Litigation
	Schedule 3.09(a) (Funding)

	 	Litigation
	Schedule 3.09(b) (Signing)

	 	Violations
	Schedule 3.09(b) (Funding)

	 	Violations
	Schedule 3.14

	 	Material Tax Claims
	Schedule 3.17

	 	Environmental Matters
	Schedule 3.18

	 	Insurance
	Schedule 3.19(a)

	 	UCC Filing Offices
	Schedule 3.19(c)

	 	Mortgage Filing Offices

vi

 

TABLE OF CONTENTS

(continued)

	 	 	 
	Schedule 3.20

	 	Owned and Leased Real Property and Title to Properties
	Schedule 3.23(b)

	 	Rate Proceedings
	Schedule 3.23(d)

	 	FERC Matters
	Schedule 3.23(f)

	 	“QF” and “EWG” Facilities
	Schedule 5.10(b)

	 	Title Insurance and Survey Requirements
	Schedule 6.01(c) (Signing)

	 	Existing Indebtedness
	Schedule 6.01(c) (Funding)

	 	Existing Indebtedness
	Schedule 6.02(d) (Signing)

	 	Existing Liens
	Schedule 6.02(d) (Funding)

	 	Existing Liens
	Schedule 6.05(d) (Funding)

	 	Existing Investments on Funds Availability Date
	Schedule 6.07(c)

	 	Restrictions on Liens
	Schedule 6.08(b)

	 	Affiliate Transactions
	 	 	 
	Annex III

	 	Signing Date Representations and Warranties
	Annex V

	 	Signing Date Affirmative Covenants
	Annex VI

	 	Signing Date Negative Covenants

vii

 

     CREDIT AGREEMENT dated as of December 23, 2008, among ENEXUS ENERGY CORPORATION, a Delaware
corporation (the “Borrower”), the Lenders and Issuers from time to time party hereto,
CITIGROUP GLOBAL MARKETS INC. and GOLDMAN SACHS LENDING PARTNERS LLC, as joint book runners and
joint lead arrangers (in such capacities, collectively, the “Arrangers”), BNP PARIBAS, as
administrative agent (in such capacity and together with its successors, the “Administrative
Agent”) and THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, as collateral agent (in such
capacity and together with its successors, the “Collateral Agent”) and MIZUHO CORPORATE
BANK, LTD., as Syndication Agent (in such capacity, the “Syndication Agent”).

     A. WHEREAS, following the Signing Date and on or prior to the Funds Availability Date (in each
case, as defined below), Entergy Corporation, a Delaware corporation (together with its successors
and assigns, “Entergy”) intends, among other things, to transfer all the assets and certain
associated liabilities it attributes to its non-utility nuclear business (the “Contributed
Business”) to the Borrower (the “Reorganization”);

     B. WHEREAS, on or prior to the Funds Availability Date, Entergy intends to distribute 100% of
the Borrower’s common stock to Entergy’s stockholders (the transfer of the Contributed Business and
such distribution being herein called the “Separation”);

     C. WHEREAS, on and after the Funds Availability Date, the Borrower intends to utilize the
proceeds of the Loans and the Letters of Credit issued hereunder for its working capital needs and
for other general corporate purposes; and

     D. WHEREAS, the Lenders and the Issuers are willing, on the terms and subject to the
conditions hereinafter set forth, to extend the Commitments, make Loans and Issue (or participate
in) Letters of Credit.

     E. NOW THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, the parties hereto hereby agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms shall
have the meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, shall refer to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Base Rate.

     “Accession Agreement” shall have the meaning given such term in the Guarantee and
Collateral Agreement.

     “Account” shall have the meaning assigned to such term in the UCC.

     “Additional Intercreditor Indebtedness” shall mean, as of any date and at any time
outstanding, Indebtedness in a maximum aggregate principal amount not to exceed (a) $2,300,000,000
minus (b) the aggregate principal amount of the Commitments hereunder;

 

 

provided that no more than $250,000,000 of such Additional Intercreditor Indebtedness
may take the form of Specified Credit Support Facilities.

     “Adjusted LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum equal to the product of (a) the LIBO Rate in effect for
such Interest Period and (b) Statutory Reserves.

     “Administrative Agent” shall have the meaning assigned to such term in the preamble.

     “Administrative Questionnaire” shall mean an Administrative Questionnaire
substantially in the form of Exhibit A, or such other similar form as may be supplied from
time to time by the Administrative Agent.

     “Affiliate” of any specified Person shall mean any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition and the definition of the term “subsidiary”,
“control,” as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or otherwise;
provided that, for purposes of this definition of “Affiliate” only, beneficial ownership of
10% or more of the voting stock of a Person will be deemed to be control. For purposes of this
definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings.

     “Affiliate Transaction” shall have the meaning assigned to such term in Section 6.08.

     “Agents” shall mean the Administrative Agent and the Collateral Agent.

     “Aggregate Revolving Credit Outstandings” shall mean the aggregate amount of the
Lenders’ Revolving Credit Outstandings.

     “Agreement” shall mean this Credit Agreement, dated as of the Signing Date, as the
same may thereafter from time to time be further amended, restated, supplemented or otherwise
modified and in effect from time to time.

     “Allocated Net Cash Proceeds”, with respect to any Recovery Event, shall mean the
lesser of (a) Net Cash Proceeds in respect of such Recovery Event, and (b) the product of (i) the
amount of Secured Obligations that are the subject of Section 2.8 of the Intercreditor Agreement
outstanding as of the date the Borrower receives the applicable Recovery Event Appraisal, and (ii)
the Diminution Percentage.

     “Applicable Laws” shall mean, as to any Person, any law, rule, regulation, ordinance
or treaty, or any determination, ruling or other directive by or from a court, arbitrator or other
Governmental Authority, in each case applicable to or binding on such Person or any of its property
or assets or to which such Person or any of its property or assets is subject.

     “Applicable Margin” shall mean (a) during the period commencing on the Funds
Availability Date and ending one Business Day after the receipt by the Administrative Agent of the
financial statements for the first full fiscal quarter ending after the Funds Availability Date
required to be delivered pursuant to Section 5.05(a) or (b), as applicable, with respect to (i)
Loans maintained as ABR Loans, a rate equal to 2.00% per annum and (ii) Loans maintained as

2

 

Eurodollar Loans, a rate equal to 3.00% per annum and (b) thereafter, as of any date of
determination, a per annum rate equal to the rate set forth below opposite the applicable type of
Loan and the then applicable Consolidated Total Leverage Ratio (determined on the last day of the
most recent fiscal quarter for which financial statements have been delivered pursuant to Section
5.05(a) or 5.05(b)) set forth below:

	 	 	 	 	 
	Consolidated Total Leverage Ratio	 	ABR Loans	 	Eurodollar Loans
	Greater than or equal to 4.0 to 1
	 	2.25%
	 	3.25%
	 	 	 	 	 
	Less than 4.0 to 1 and equal to or greater than
3.0 to 1
	 	2.00%
	 	3.00%
	 	 	 	 	 
	Less than 3.0 to 1
	 	1.75%
	 	2.75%

     Changes in the Applicable Margin resulting from a change in the Consolidated Total Leverage
Ratio on the last day of any subsequent fiscal quarter shall become effective as to all Loans upon
delivery by the Borrower to the Administrative Agent of new financial statements pursuant to
Section 5.05 (a) or (b), as applicable. Notwithstanding anything to the contrary set forth in this
Agreement (including the then effective Consolidated Total Leverage Ratio), (i) if the Borrower
shall fail to deliver such financial statements at the time specified in Section 5.05(a) or (b), as
the case may be (such date, the “Financial Statement Delivery Failure Date”), the
Applicable Margin from and including the first day following the Financial Statement Delivery
Failure Date to, but not including, the date the Borrower delivers to the Administrative Agent such
financial statements shall equal the highest possible Applicable Margin provided for by this
definition and (ii) in the event that the financial statements or compliance certificate delivered
pursuant to Section 5.05 are shown to be inaccurate (regardless of whether this Agreement or the
Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected,
would have led to a higher Applicable Margin for any period (an “Applicable Period”) than
the Applicable Margin that was applied for such Applicable Period, then (i) the Borrower shall
promptly deliver to the Administrative Agent a correct Compliance Certificate for such Applicable
Period, (ii) the Applicable Percentage shall be determined by reference to the corrected Compliance
Certificate (but in no event shall the Lenders owe any amounts to the Borrower) and (iii) the
Borrower shall promptly pay to the Administrative Agent the additional interest owing as a result
of such increased Applicable Margin for such Applicable Period, which payment shall be promptly
applied by the Administrative Agent in accordance with the terms hereof. This paragraph shall not
limit the rights of the Administrative Agent and the Lenders hereunder.

     “Approved Electronic Communications” shall mean each notice, demand, communication,
information, document and other material that any Loan Party is obligated to, or otherwise chooses
to, provide to the Agents pursuant to any Loan Document or the transactions contemplated therein,
including (a) any supplement or joinder to the Guarantee and Collateral Agreement or Intercreditor
Agreement and any other written Contractual Obligation delivered or required to be delivered in
respect of any Loan Document or the transactions contemplated therein, (b) any financial statement,
financial and other report, notice, request, certificate and other information material and (c)
information for prospective assignees, participants or other transferees; provided,
however, that, “Approved Electronic Communications” shall exclude (i) any Borrowing
Request, Letter of Credit Request, Notice of Continuation or Conversion and any other notice,
demand, communication, information, document and other material relating to a

3

 

request for a new, or a conversion of an existing, Borrowing, (ii) any notice pursuant to
Sections 2.11 and 2.12 and any other notice relating to the payment of any principal or other
amount due under any Loan Document prior to the scheduled date therefor, (iii) all notices of any
Default or Event of Default and (iv) any notice, demand, communication, information, document and
other material required to be delivered to satisfy any of the conditions set forth in Article IV or
Section 2.03 or any other condition to any Borrowing or other extension of credit hereunder or any
condition precedent to the effectiveness of this Agreement.

     “Approved Electronic Platform” shall have the meaning specified in Section 8.04(a).

     “Arrangers” shall have the meaning assigned to such term in the preamble.

     “Asset Sale” shall mean the direct or indirect (a) sale, lease (other than an
operating lease), sale and leaseback, lease and leaseback, assignment (other than a collateral
assignment), conveyance, transfer or other disposition (by way of merger, consolidation or
otherwise) by the Borrower or any Restricted Subsidiary to any Person other than the Borrower or
any Subsidiary Guarantor of (1) any Equity Interests of any of the Subsidiaries (other than
directors’ qualifying shares or investments by foreign nationals required by Applicable Laws) or
(2) any other assets of the Borrower or any Restricted Subsidiary, including Equity Interests of
any Person that is not the Borrower or a Subsidiary or (b) issuance of Equity Interests in any of
the Restricted Subsidiaries to any Person other than the Borrower or any Subsidiary Guarantor;
provided that (i) any asset sale or series of related asset sales described in clause (a)
or (b) above of assets having a value not in excess of $15,000,000 shall be deemed not to be an
“Asset Sale” for purposes of this Agreement; and (ii) each of the following transactions
shall be deemed not to be an “Asset Sale” for purposes of this Agreement: (A) the sale,
transfer, contribution or other disposition by the Borrower or any Restricted Subsidiary of (x)
damaged, worn-out, obsolete assets and scrap and (y) cash or Cash Equivalents, (B) the sale by the
Borrower or any Restricted Subsidiary of power, capacity, energy, ancillary services, and other
products or services or the sale of any other inventory or contracts related to any of the
foregoing, (C) the sale, lease, conveyance or other disposition for value by the Borrower or any
Restricted Subsidiary of fuel, emission credits or renewable energy credits, in each case in the
ordinary course of the Permitted Business, (D) the sale, transfer or other disposition of any
assets (other than the disposition of Collateral pursuant to the Intercreditor Agreement) subject
to a Permitted Lien in connection with a foreclosure, transfer or deed in lieu of foreclosure or
other remedial action, (E) the sale, lease, transfer, contribution or other disposition by any
Restricted Subsidiary that is not a Loan Party of any of its assets or the issuance or transfer of
Equity Interests by any Restricted Subsidiary that is not a Loan Party, in each case to the
Borrower or any other Restricted Subsidiary, (F) the licensing of Intellectual Property (as defined
in the Guarantee and Collateral Agreement), (G) the sale or discount, in each case without
recourse, of accounts receivable arising in the ordinary course of business, but only in connection
with the compromise or collection thereof, (H) the sale, lease, transfer, contribution or other
disposition of spare parts and spare parts inventory in the ordinary course of the Permitted
Business so long as such spare parts and spare parts inventory are required by such transferee in
the ordinary course of such transferee’s business or operations at the time of such disposition,
(I) Permitted Dispositions, (J) the granting of Liens permitted by Section 6.02, (K) the making of
Investments permitted by Section 6.05, (L) any mergers, consolidations, liquidations or
dissolutions permitted by Section 6.04(a), (M) Dividends permitted by Section 6.06 and (N)
assignment, conveyance, transfer or other disposition pursuant to casualty, condemnation or
operation of law.

4

 

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any Person whose consent is required by Section 9.04),
substantially in the form of Exhibit C or such other similar form as shall be approved by
the Administrative Agent.

     “Assumption Agreement” shall have the meaning given such term in the Guarantee and
Collateral Agreement.

     “Attributable Debt” in respect of a sale and leaseback transaction shall mean, at the
time of determination, the present value of the obligation of the lessee for net rental payments
during the remaining term of the lease included in such sale and leaseback transaction, including
any period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP; provided,
however, that if such sale and leaseback transaction results in a Capital Lease Obligation,
the amount of Indebtedness represented thereby will be determined in accordance with the definition
of “Capital Lease Obligation”, and shall not be deemed to be Attributable Debt.

     “Available Amount” shall mean, on any date (the “Reference Date”), an amount
equal on such Reference Date to (a) the greater of (i) zero and (ii) (A) 50% of the Consolidated
Net Income (excluding, to the extent included in Consolidated Net Income, insurance proceeds other
than proceeds of business interruption insurance) of the Borrower and its Restricted Subsidiaries
for the period (on a cumulative basis, taken as one accounting period) from the Funds Availability
Date to the end of the Borrower’s most recently ended fiscal quarter for which financial statements
are publicly available (or, if such Consolidated Net Income for such period is a deficit, less 100%
of such deficit), plus (B) 100% of the aggregate proceeds received by the Borrower since
the Funds Availability Date (1) as a contribution to its Capital Stock or (2) from the issue or
sale of its Capital Stock; plus (b) $500,000,000; minus (c) on such Reference Date,
the sum of (i) the aggregate amount of outstanding Investments made pursuant to Section 6.05(j)
since the Funds Availability Date in excess of the $150,000,000 allowance for such Investments set
forth in clause (A) of Section 6.05(j), plus (ii) the aggregate amount of Dividends made
since the Funds Availability Date pursuant to Section 6.06(c) plus (iii) the aggregate
amount of any distributions or payments made since the Funds Availability Date pursuant to Section
6.07(a).

     “Bankruptcy Code” shall mean Title 11 of United States Code, 11 U.S.C. §§ 101,
et seq., as amended from time to time.

     “Bankruptcy Law” shall mean the Bankruptcy Code or any similar federal or state or
other law for the relief of debtors.

     “Base Rate” shall mean, for any period, a fluctuating interest rate per annum as shall
be in effect from time to time, which rate per annum shall be equal at all times to the highest of
the following:

          (a) the rate of interest announced publicly by BNP Paribas in New York, New York, from time to
time, as BNP Paribas’s prime rate; and

          (b) 0.5% per annum plus the Federal Funds Rate;

5

 

provided, however, that, except during a Eurodollar Unavailability Period and
except as set forth in Section 2.15(c), (i) at no time shall the Base Rate on any day be less than
the sum of (A) the Adjusted LIBO Rate for a one-month Interest Period that would commence on such
day and (B) 1.0% and (ii) to the extent the Base Rate would be less than the amount specified in
clause (i) of this proviso, the Applicable Margin for ABR Loans at such time shall be increased in
an amount sufficient to eliminate such difference.

     “Benefit Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 or 430 of the Tax
Code or Sections 302 or 303 of ERISA, and which is maintained, sponsored or contributed to by the
Borrower or any ERISA Affiliate.

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States of America (or any successor thereto).

     “Board of Directors” shall mean (a) with respect to a corporation, the board of
directors of the corporation or any committee thereof duly authorized to act on behalf of such
board; (b) with respect to a partnership, the Board of Directors of the general partner of the
partnership; (c) with respect to a limited liability company, the managing member or members or any
controlling committee or board of managing members or managers thereof; and (d) with respect to any
other Person, the board or committee of such Person serving a similar function.

     “Borrower” shall have the meaning assigned to such term in the preamble hereto.

     “Borrowing” shall mean Loans of the same Type made, converted or continued on the same
date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

     “Borrowing Request” shall have the meaning assigned to such term in Section 2.02(a).

     “Breakage Event” shall have the meaning assigned to such term in Section 2.16.

     “Business Day” shall mean any day other than a Saturday, Sunday or day on which
commercial banks in New York City are authorized or required by law to close; provided,
however, that when used in connection with a Eurodollar Loan (including with respect to all
notices and determinations in connection therewith and any payments of principal, interest or other
amounts thereon), the term “Business Day” shall also exclude any day on which banks are not
open for dealings in dollar deposits in the London interbank market.

     “Capital Lease Obligation” shall mean, at the time any determination is to be made,
the amount of the liability in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP, the maturity of which shall be the date of
the last payment of rent or any other amount due under such lease prior to the first date upon
which such lease may be prepaid by the lessee without payment of a penalty.

     “Capital Stock” shall mean shares of capital stock (whether denominated as common
stock or preferred stock), beneficial, partnership or membership interests, participations or other
equivalents (regardless of how designated) of or in a corporation, partnership, limited liability
company or equivalent entity, whether voting or non-voting, but excluding from all of the foregoing
any debt securities convertible into Capital Stock, whether or not such debt securities include any
right of participation with Capital Stock.

6

 

     “Capital Stock Equivalents” shall mean all securities convertible into or exchangeable
for Capital Stock and all warrants, options, stock appreciation rights or other rights to purchase
or subscribe for any Capital Stock, whether or not presently convertible, exchangeable or
exercisable.

     “Cash Equivalents” shall mean

     (i) United States dollars or, in the case of any Foreign Subsidiary, any local
currencies held by it readily convertible into United States dollars;

     (ii) securities issued or directly and fully unconditionally guaranteed or insured by
the United States government or any agency of the United States government having in each
case maturities and/or reset dates of not more than 12 months from the date of acquisition;

     (iii) securities issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof having maturities of
not more than 24 months from the date of acquisition thereof and, at the time of
acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s;

     (iv) certificates of deposit, Eurodollar time deposits, and bankers’ acceptances
maturing not more than 6 months after such date and issued or accepted by any Lender or by
any commercial bank organized under the laws of the United States of America or any state
thereof or the District of Columbia that (a) is at least “adequately capitalized” (as
defined in the regulations of its primary federal banking regulator) and (b) has Tier 1
capital (as defined in such regulations) of not less than $500,000,000;

     (v) overnight bank deposits;

     (vi) repurchase agreements with a term of not more than 120 days;

     (vii) commercial paper maturing not more than 120 days from the date of acquisition
and having a rating of at least A-1 from S&P or at least P-1 from Moody’s; and

     (viii) shares of any money market mutual fund that (a) has substantially all of its
assets invested continuously in the types of investments referred to in clauses (i) and
(ii) above, (b) has net assets of not less than $5,000,000,000 and (c) has the highest
rating obtainable from either S&P or Moody’s.

     “Cash Management Document” shall mean any certificate, agreement or other document
executed by any Loan Party in respect of Cash Management Services provided to any Loan Party.

     “Cash Management Obligation” shall mean, as applied to any Loan Party, any direct or
indirect liability, contingent or otherwise, of such Loan Party owing pursuant to the applicable
Cash Management Documents in respect of Cash Management Services provided to such Loan Party,
including any obligations for the payment of fees, interest, charges, expenses, reasonable
attorneys’ fees and disbursements in connection therewith.

7

 

     “Cash Management Services” shall mean treasury, depository, overdraft, credit or debit
card, electronic funds transfer and other cash management arrangements.

     “Change in Law” shall mean (a) the adoption of any law, rule or regulation by any
Governmental Authority after the Signing Date, (b) any change in any law, rule or regulation or in
the interpretation or application thereof by any Governmental Authority after the Signing Date or
(c) compliance by any Lender or any Issuer (or, for purposes of Section 2.14, by any lending office
of such Lender or by such Lender’s or Issuer’s holding company, if any) with any request, guideline
or directive (whether or not having the force of law) of any Governmental Authority made or issued
after the Signing Date.

     “Change of Control” shall mean, from and after the Separation, (a) the acquisition of
beneficial ownership, directly or indirectly, including by merger or consolidation by any Person or
group (within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on
the date hereof) of shares representing more than 40% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of the Borrower, (b) the occupation of a
majority of seats on the Board of Directors of the Borrower by Persons who were neither (i) members
of the Board of Directors of the Borrower on the Funds Availability Date (the “Funding Date
Board”), (ii) nominated by the Funding Date Board or (iii) appointed or nominated by directors
so nominated or (c) the occurrence of a “change of control” (or any other defined term
having a similar purpose) as defined in any contract, indenture or other agreement with respect to
Material Indebtedness of the Borrower or any of its Restricted Subsidiaries.

     “Charges” shall have the meaning assigned to such term in Section 9.09.

     “Collateral” shall mean all property and interests in property and proceeds thereof
now owned or hereafter acquired by any Loan Party in or upon which a Lien is granted under any
Security Document; provided, however, that “Collateral” shall not include
Excluded Assets.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble, or
its successors appointed in accordance with the terms of this Agreement and the Intercreditor
Agreement.

     “Commencement Notice” shall mean, in respect of any Recovery Event, notice to the
Agents that the Borrower has formally begun seeking regulatory approval or begun contracting to
utilize the Allocated Net Cash Proceeds for one or more Permitted Reinvestments.

     “Commitment” shall mean, with respect to each Lender, the commitment of such Lender to
make Loans and acquire interests in other Revolving Credit Outstandings in the aggregate principal
amount outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 under the caption “Commitment”, as amended to reflect each Assignment and
Acceptance executed by such Lender and as such amount may be (a) reduced from time to time pursuant
to Sections 2.09 or 2.12 and (b) reduced or increased from time to time pursuant to assignments by
or to such Lender in accordance with Sections 2.21 or 9.04.

     “Commodities Account” shall have the meaning assigned to such term in the UCC.

     “Commodity Contract” shall have the meaning assigned to such term in the UCC.

8

 

     “Commodity Hedging Obligations” shall mean, with respect to any specified Person, the
obligations of such Person under Commodity Hedging Transactions.

     “Commodity Hedging Transaction” shall mean any swaps (including without limitation
heat rate swaps), caps, collars, puts, calls, floors, futures, options, spots, forwards, power
purchase, tolling or sale agreements, fuel purchase or sale agreements (including any and all fuels
used for power generation, whether or not used by the Borrower and its Restricted Subsidiaries),
weather risk management transactions, emissions or renewable energy credit or allowance purchase or
sales agreements, power transmission agreements, fuel enrichment, processing, fabrication,
transportation or storage agreements, netting agreements, or commercial or trading agreements, each
with respect to, or involving the purchase, transmission, distribution, sale, lease or hedge of,
energy, generation capacity or fuel (including any and all fuels used for power generation, whether
or not used by the Borrower and its Restricted Subsidiaries), or any other energy related commodity
or service, price or price indices for any such commodities or services or any other similar
derivative agreements, and any other similar agreements from time to time entered into by the
Borrower or any Restricted Subsidiary in the ordinary course of its business as a merchant power
generator (as its risk management practices and methods may evolve from time to time, consistent
with all requirements of law and applicable regulation) in order to manage fluctuations in the
price or availability of any energy commodity or to manage any regulatory or other risk of the
Borrower or such Restricted Subsidiary in connection with its business as a merchant power
generator (and in any case not for speculative purposes).

     “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum of the Borrower dated August 29, 2008.

     “Consolidated EBITDA” shall mean (a) Consolidated Net Income of the Borrower and its
consolidated Subsidiaries for such period plus (b) the sum of, in each case to the extent
reducing Consolidated Net Income for such period but without duplication, (i) Consolidated Interest
Expense, (ii) any provision for income taxes, (iii) depreciation, depletion and amortization
expenses, (iv) losses from extraordinary items (including from Commodity Hedging Transactions), (v)
costs, expenses or charges (including any professional or underwriting fees) related to the
Transactions, and (vi) all other non-cash charges and non-cash losses (including (A) the amount of
any compensation deduction as the result of any grant of Capital Stock or Capital Stock Equivalents
to employees, officers, directors or consultants, (B) losses from early extinguishment of
Indebtedness and (C) decommissioning costs) minus (c) the sum of, in each case to the
extent increasing Consolidated Net Income for such period but without duplication, (i) any credit
for income taxes, (ii) gains from extraordinary items (including from Commodity Hedging
Transactions), (iii) any other non-cash gains or other items which have been added in determining
Consolidated Net Income, (including (A) any reversal of a charge referred to in clause (b)(vi)
above by reason of a decrease in the value of any such Capital Stock or Capital Stock Equivalent
and (B) gains from early extinguishment of Indebtedness); provided, however, that
(i) Consolidated EBITDA of the Borrower and its consolidated Subsidiaries will exclude the
Consolidated EBITDA attributable to Unrestricted Subsidiaries unless (and solely to the extent)
actually distributed in cash to the Borrower or any Restricted Subsidiary, and (ii) for purposes of
calculating Consolidated EBITDA of the Borrower and its consolidated Subsidiaries for any period
for purposes of the Financial Covenants, (A) the Consolidated EBITDA of any Person or line of
business acquired by the Borrower or any Restricted Subsidiary pursuant to a Permitted Acquisition
made in accordance with the terms of this Agreement during such period shall be included on a pro
forma basis for such period (assuming the consummation of such acquisition

9

 

and the incurrence or assumption of any Indebtedness in connection therewith occurred as of the
first day of such period) and (B) the Consolidated EBITDA of any Person or line of business sold or
otherwise disposed of by the Borrower or any Restricted Subsidiary during such period shall be
excluded for such period (assuming the consummation of such sale or other disposition and the
repayment of any Indebtedness in connection therewith occurred as of the first day of such period).

     “Consolidated Interest Coverage Ratio” shall mean, on any date, the ratio of (a)
Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ended on or
prior to such date to (b) Consolidated Interest Expense for the period of the most recent four
consecutive fiscal quarters ended on or prior to such date.

     “Consolidated Interest Expense” shall mean, for the Borrower and its consolidated
Subsidiaries for any period, consolidated total cash interest expense of the Borrower and its
consolidated Subsidiaries for such period; provided, however, that Consolidated
Interest Expense of the Borrower and its consolidated Subsidiaries will (a) exclude cash interest
expense of Unrestricted Subsidiaries and (b) be net of cash interest income. Notwithstanding
anything to the contrary contained herein, for purposes of calculating Consolidated Interest
Expense, (a) for the period of four consecutive fiscal quarters ending December 31, 2008,
Consolidated Interest Expense for such period shall be deemed to be an amount equal to Consolidated
Interest Expense for the period beginning on the Funds Availability Date and ending December 31,
2009, divided by the number of days in such period and multiplied by 365, (b) for the period of
four consecutive fiscal quarters ending March 31, 2010, Consolidated Interest Expense for such
period shall be deemed to be an amount equal to Consolidated Interest Expense for the period
beginning on the Funds Availability Date and ending March 31, 2010, divided by the number of days
in such period and multiplied by 365 and (c) for the period of four consecutive fiscal quarters
ending June 30, 2010, Consolidated Interest Expense for such period shall be deemed to be an amount
equal to Consolidated Interest Expense for the period beginning on the Funds Availability Date and
ending June 30, 2010, divided by the number of days in such period and multiplied by 365.

     “Consolidated Net Income” shall mean, for any period, the consolidated net income (or
loss) of the Borrower and its consolidated Subsidiaries for such period; provided,
however, that (a) the net income (or loss) from any Minority Investment (including in
EquaGen) shall be excluded from the net income of the Borrower and its consolidated Subsidiaries,
(b) the amount of dividends or distributions from any Minority Investment (including in EquaGen)
paid to the Borrower or its consolidated Subsidiaries shall be included in the net income of the
Borrower and its consolidated Subsidiaries, (c) the cumulative effect of a change in accounting
principles during such period shall be excluded, (d) gains and losses from Asset Sales during such
period shall be excluded and (e) the net income of any Subsidiary of such Person that is subject to
any restriction or limitation on the payment of dividends or the making of other distributions
shall be excluded to the extent of such restriction or limitation.

     “Consolidated Total Leverage Ratio” shall mean, on any date, the ratio of (a)
Consolidated Total Net Debt on such date to (b) Consolidated EBITDA for the period of the most
recent four consecutive fiscal quarters most recently ended on or prior to such date.

     “Consolidated Total Net Debt” shall mean, without duplication, all liabilities,
obligations and indebtedness (whether contingent or otherwise) (i) of the type specified in clauses
(a), (b), (d) and (e) of the definition of “Indebtedness” (in the case of indebtedness
specified in such clause (d), as reported over time in accordance with GAAP), (ii) in respect of
Capital Lease Obligations

10

 

permitted under Section 6.01(f), (iii) for reimbursement obligations in respect of drawn
letters of credit (including, with respect to any Loan Party, Letters of Credit issued hereunder),
(iv) under any Guarantee of obligations of the type described in clauses (i) through (iii) of this
definition; and (v) in respect of unfunded vested benefits under plans covered by Title IV of
ERISA, in each case actually owing by the Borrower and the Restricted Subsidiaries on such date and
to the extent appearing on the balance sheet of the Borrower determined on a consolidated basis in
accordance with GAAP (provided that the amount of any Capital Lease Obligations or any such
Indebtedness issued at a discount to its face value shall be determined in accordance with GAAP);
provided, however, that notwithstanding the foregoing, “Consolidated Total Net
Debt” shall not include the unfunded portion of any Credit Support Facilities or any Guarantees
of the obligations thereof and shall be net of (x) Unrestricted Cash and (y) cash or Cash
Equivalents posted as collateral in respect of Credit Support Facilities not secured by the
Collateral (but only to the extent of any Indebtedness in respect of the Credit Support Facility
for which such cash or Cash Equivalents have been posted).

     “Constituent Documents” shall mean, with respect to any Person, (a) the articles of
incorporation, certificate of incorporation, constitution or certificate of formation (or the
equivalent organizational documents) of such Person, (b) the by-laws or operating agreement (or the
equivalent governing documents) of such Person and (c) any document setting forth the manner of
election or duties of the directors or managing members of such Person (if any) and the
designation, amount or relative rights, limitations and preferences of any class or series of such
Person’s Capital Stock.

     “Contractual Obligation” of any Person shall mean any obligation, agreement,
undertaking or similar provision of any Security issued by such Person or of any agreement,
undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (excluding a
Loan Document) to which such Person is a party or by which it or any of its property is bound or to
which any of its property is subject.

     “Control Agreement” shall mean each Deposit Account Control Agreement, Securities
Account Control Agreement or Commodities Account Control Agreement to be executed and delivered by
each Loan Party and the other parties thereto as required by the applicable Loan Documents, as the
same may be amended, restated, supplemented or otherwise modified from time to time in accordance
with the terms hereof and thereof.

     “Core Assets” shall mean the power generating facilities owned by the Loan Parties and
set forth on Schedule 1.01(a), as such schedule is updated from time to time in accordance
with Section 5.07(c).

     “Core Asset Subsidiary” shall mean any Subsidiary that directly owns Core Assets. The
Core Asset Subsidiaries as of the Funds Availability Date are set forth on Schedule
1.01(a).

     “Corporate Chart” shall mean a corporate organizational chart, list or other similar
document, in each case in form reasonably acceptable (i) on the Funds Availability Date, to the
Arrangers and (ii) thereafter, to the Administrative Agent, setting forth each Person that is a
Loan Party and each Person that is a Subsidiary or Minority Investment of any of them (together
with an indication of which such Persons have assets encumbered by the Lien of the Collateral
Agent), including (a) the full legal name of such Person and (b) the jurisdiction of organization,
the organizational number (if any) and the tax identification number (if any) of such Person.

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     “Credit Event” shall have the meaning assigned to such term in Section 4.01.

     “Credit Support Facilities” shall mean any commodity credit revolver, credit commodity
posting facility, novation, guaranty or other third-party credit support with respect to a
Commodity Hedging Transaction; provided, that “Credit Support Facilities” shall not include
funded indebtedness, the proceeds of which are used as collateral or credit support for a facility
which is used to provide credit support for Commodity Hedging Transactions.

     “Currency Hedging Transactions” shall mean all contracts, agreements or arrangements
designed to protect against fluctuations in currency exchange rates entered into in the ordinary
course of the Permitted Business and, in any case, not for speculative purposes.

     “Default” shall mean any event or condition which upon notice, lapse of time or both
would constitute an Event of Default.

     “Default Excess” means, with respect to any Defaulting Lender, the excess, if any, of
such Defaulting Lender’s Ratable Portion of the Revolving Credit Outstandings (calculated as if all
Defaulting Lenders (including such Defaulting Lender) had funded their respective Defaulted Loans)
over the aggregate outstanding principal amount of all Loans of such Defaulting Lender.

     “Defaulting Lender” shall mean, at any time, any Lender that, at such time, (a) fails
to make available its portion of any Borrowing or to pay (other than as a result of a good faith
dispute) any amount required to be paid by such Lender to any Issuer under this Agreement (beyond
any applicable cure period), (b) has otherwise failed to pay (other than as a result of a good
faith dispute) any other amount required to be paid by such Lender to the Administrative Agent or
any other Lender under this Agreement (beyond any applicable cure period), (c) shall take any
action or be the subject of any action or proceeding of a type described in clause (g) or (h) of
Section 7.02 (without giving effect to any cure period referenced therein) or (d) has notified the
Administrative Agent, any Issuer and/or the Borrower in writing or publicly stated any of the
foregoing (including any written notification by such Lender that it does not intend to comply with
its funding obligations described in preceding clause (a)) other than as a result of a good faith
dispute; provided, however, that for purposes of Section 2.03(g) only, the term “Defaulting
Lender” shall also include (i) any Lender with an Affiliate that (x) “controls” (within the meaning
provided therefor in the definition of Affiliate) such Lender and (y) has been deemed insolvent or
become the subject of a bankruptcy or insolvency proceeding or a takeover by a regulatory authority
(unless the Administrative Agent has elected in its sole discretion not to treat such Lender as a
Defaulting Lender), (ii) any Lender that previously constituted a “Defaulting Lender” under this
Agreement, unless such Lender has ceased to constitute a “Defaulting Lender” for a period of at
least 60 consecutive days and (iii) any Lender that the Administrative Agent or any Issuer believes
in good faith has failed to fund any portion of its loans or otherwise defaulted in its obligations
under any other credit facility to which such Lender is a party (other than as a result of a good
faith dispute), for so long as such failure or default is continuing. The determination as to
whether a Lender is a Defaulting Lender shall be made in good faith by the Administrative Agent in
its sole discretion (except that in the event that the Administrative Agent or an Affiliate thereof
is the Defaulting Lender, such determination shall be made by the Required Lenders).

     “Defaulted Loan” means (i) any Loan required to be funded in accordance with the terms
of this Agreement with respect to which a Defaulting Lender has failed to advance its Ratable
Portion or (ii) a Defaulting Lender’s portion of any payment required to be made by it in

12

 

accordance with the terms of this Agreement in respect of unreimbursed payments under Section
2.03(h).

     “Deposit Account” shall have the meaning assigned to such term in the UCC.

     “Deposit Account Bank” shall mean a financial institution selected or approved by (i)
on the Funds Availability Date, the Arrangers and the Collateral Agent and (ii) thereafter, the
Administrative Agent and the Collateral Agent, in each case in their reasonable discretion.

     “Deposit Account Control Agreement” shall have the meaning specified in the Guarantee
and Collateral Agreement.

     “Description of Senior Notes” shall mean the description of senior notes attached
hereto as Exhibit T, as amended or modified from time to time; provided that no
such amendment or modification shall be materially adverse to the Lenders unless the Arrangers and
the Required Lenders have consented to such amendment or waiver.

     “Diminution Percentage” shall mean, with respect to any Recovery Event, (i) the
Initial Appraised Value less the applicable Post-Recovery Event Appraised Value divided
by (ii) the Initial Appraised Value.

     “Disqualified Stock” shall mean any Capital Stock (or Capital Stock Equivalents
convertible into Capital Stock) that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case at the option of the holder of the
Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable (other
than for common stock), pursuant to a sinking fund obligation or otherwise, or redeemable (other
than for common stock) at the option of the holder of the Capital Stock, in whole or in part, on or
prior to the date that is 91 days after the Revolving Credit Maturity Date. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the
holders of the Capital Stock have the right to require the Borrower or any Restricted Subsidiary to
repurchase such Capital Stock upon the occurrence of a change of control or an asset sale will not
constitute Disqualified Stock if the terms of such Capital Stock provide that the Borrower or any
Restricted Subsidiary may not repurchase or redeem any such Capital Stock pursuant to such
provisions unless such repurchase or redemption complies with Section 6.06. The amount of
Disqualified Stock deemed to be outstanding at any time for purposes of this Agreement will be the
maximum amount that the Borrower and its Restricted Subsidiaries may become obligated to pay upon
the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock,
exclusive of accrued dividends.

     “Dividends” shall have the meaning provided in Section 6.06.

     “dollars” or “$” shall mean lawful money of the United States of America,
except when expressly used in reference to the lawful money of another country.

     “Domestic Subsidiary” shall mean any Subsidiary that is not a Foreign Subsidiary.

     “Easement” shall have the meaning assigned to such term in Section 3.07(a).

     “Entergy” shall have the meaning assigned to such term in the preamble.

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     “Environmental CapEx Debt” shall mean Indebtedness of the Borrower or its Restricted
Subsidiaries incurred for the purpose of financing Environmental Capital Expenditures.

     “Environmental Capital Expenditures” shall mean capital expenditures to the extent
deemed reasonably necessary, as determined by the Borrower or its Restricted Subsidiaries (as
applicable) in good faith and pursuant to prudent judgment, to comply with applicable Environmental
Laws.

     “Environmental Laws” shall mean all former, current and future Federal, state and
local laws (including common law), treaties, regulations, rules, ordinances and codes, and legally
binding decrees, judgments, directives and orders (including consent orders), in each case,
relating to protection of the environment, natural resources, occupational health and safety, human
health or safety or the presence, Release of, or exposure to, Hazardous Materials or the
generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport,
recycling or handling of, or the arrangement for such activities with respect to, Hazardous
Materials.

     “Environmental Liability” shall mean all liabilities, obligations, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) non-compliance with any Environmental Law, (b) the
generation, manufacture, processing, distribution, recycling, use, handling, transportation,
storage, treatment or disposal of, or the arrangement of such activities with respect to, any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials at or from any location or (e) any contract or agreement pursuant to which liability is
assumed, imposed or covered by an indemnity with respect to any of the foregoing; provided,
however, that “Environmental Liability” shall not include any matter for which
remediation will be funded through any decommissioning fund as required by Nuclear Law.

     “EquaGen” shall mean EquaGen LLC, a Delaware limited liability company.

     “Equity Interests” shall mean all Capital Stock and Capital Stock Equivalents.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Tax
Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Tax Code, is treated as
a single employer under Section 414 of the Tax Code.

     “ERISA Event” shall mean (a) any “reportable event”, as defined in Section
4043 of ERISA or the regulations issued thereunder, with respect to a Benefit Plan (other than an
event for which the 30-day notice period is waived); (b) the existence with respect to any Benefit
Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Tax Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Tax
Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with
respect to any Benefit Plan; (d) the incurrence by the Borrower or any ERISA Affiliate of any
liability under Title IV of ERISA with respect to the termination of any Benefit Plan or the
withdrawal or partial withdrawal of the Borrower or any ERISA Affiliate from any Benefit Plan

14

 

or Multiemployer Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or
a plan administrator of any notice relating to the intention to terminate any Benefit Plan or to
appoint a trustee to administer any Benefit Plan; (f) the adoption of any amendment to a Benefit
Plan that would require the provision of security pursuant to Section 401(a)(29) of the Tax Code or
Section 307 of ERISA; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or
the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate; provided, however that this definition of
“Eurodollar” shall not include Base Rate Loans bearing interest at a rate specified in the proviso
to the definition of “Base Rate”.

     “Eurodollar Unavailability Period” means any period of time during which a notice
delivered to the Borrower in accordance with Section 2.08 shall remain in force and effect.

     “Event of Default” shall mean (i) from and after the Signing Date until the Funds
Availability Date, the events set forth in Section 7.01 and (ii) from and after the Funds
Availability Date, the events set forth in Section 7.02.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Excluded Assets” shall mean

     (i) any lease, license, contract or agreement to which any Loan Party is a party or
any of such Loan Party’s rights or interests thereunder if and only for so long as
Applicable Law prohibits the creation of a security interest therein or the grant of a
security interest therein under the Security Documents shall constitute or result in (A) a
breach, termination or default or invalidity under any such lease, license, contract,
property right or agreement or (B) the loss, abandonment, termination or unenforceability
of any right, title or interest in or to such property, in each case, other than to the
extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC of any relevant jurisdiction or any other Applicable Law or
principles of equity; provided that such lease, license, contract, property right
or agreement shall be an Excluded Asset only to the extent and for so long as the
consequences specified above shall exist and shall cease to be an Excluded Asset and shall
become subject to the security interest granted under the Security Documents, immediately
and automatically, at such time as such consequences shall no longer exist;

     (ii) any goods, deposit accounts, general intangibles or investment property (as each
such term is used in the UCC) in which a security interest therein is prohibited by
Applicable Law, other than to the extent that any such prohibition would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant
jurisdiction or any other Applicable Law or principles of equity; provided that
such goods, deposit accounts, general intangibles or investment property shall be an
Excluded Asset only to the extent and for so long as the consequences specified above shall
exist and shall cease to be an Excluded Asset and shall become subject to the security
interest

15

 

granted under the Security Documents, immediately and automatically, at such time as
such consequences shall no longer exist;

     (iii) (A) each fee-owned real property held by any Loan Party with a Fair Market Value
of less than $2,500,000, (B) leasehold interests that do not constitute Material Leases,
(C) fee-owned real property and leasehold interests (but not personal property or fixtures)
owned or leased by any Loan Party that is located in the State of New York, (D) any
fee-owned real property or leasehold interest (but not personal property or fixtures)
acquired by any Loan Party and located in the State of New York; and (E) the Charlevoix
County, Michigan parcel of real property and the improvements located thereon constituting
the facility known as the Big Rock Independent Spent Fuel Storage Installation;

     (iv) any applications for trademarks or service marks filed in the United States
Patent and Trademark Office (the “PTO”) pursuant to 15 U.S.C. §1051 Section 1(b)
unless and until evidence of use of the mark in interstate commerce is submitted to the PTO
pursuant to 15 U.S.C. §1051 Section 1(c) or Section 1(d);

     (v) shares of Capital Stock held by a Loan Party having voting power in excess of 65%
of the voting power of all classes of Capital Stock of a Foreign Subsidiary;

     (vi) motor vehicles and other assets subject to certificates of title;

     (vii) letter of credit rights (as defined in the UCC) that do not constitute
Supporting Obligations;

     (viii) Liens on cash and Cash Equivalents pledged pursuant to Sections 6.02(n) and
6.02(z); and

     (ix) any cash collateral accounts maintained pursuant to the Secured Obligations in
connection with letters of credit issued thereunder for the sole benefit of any of the
applicable Senior Secured Parties (which cash collateral accounts shall solely be for the
benefit of such applicable Senior Secured Parties and the issuing bank that issued such
letters of credit and not the other Senior Secured Parties).

     “Excluded Perfection Assets” shall mean (i) any Deposit Account, Securities Account or
Commodities Account (and all cash, Cash Equivalents and Commodity Contracts held therein) if and
only for so long as such Deposit Account, Securities Account or Commodities Account holds cash or
Cash Equivalents in an amount not exceeding $2,000,000 individually or $15,000,000 in the aggregate
for all such Deposit Accounts, Securities Accounts and Commodities Accounts; (ii) any Deposit
Account that is a “zero-balance” account (as long as (x) the balance in such “zero
balance” account does not exceed at any time the applicable threshold described in clause (i)
above for a period of 24 consecutive hours or more and (y) all amounts in such
“zero-balance” account shall be swept on a daily basis into another Deposit Account that
does not constitute an Excluded Perfection Asset); and (iii) those assets for which the Collateral
Agent has determined in its reasonable discretion that the costs of perfecting a security interest
in such assets are excessive in relation to the value to be afforded to the Senior Secured Parties
thereby.

     “Excluded Subsidiary” shall mean (i) any Unrestricted Subsidiary, (ii) any Immaterial
Subsidiary and (iii) any Foreign Subsidiary.

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     “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, any
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income, profits, franchise, branch or similar Taxes imposed on (or measured
in whole or in part by) any Person’s net income, net profits or capital by the United States of
America (or any political subdivision thereof), or by the jurisdiction under the laws of which such
Person is organized, in which its principal or applicable lending office is located or in which it
is otherwise doing business (other than a jurisdiction in which such Person would not have been
treated as doing business but for and solely as a result of its execution or delivery of any Loan
Document or its exercise of its rights or performance of its obligations thereunder); (b)
withholding Taxes, imposed (i) on the date that such Person became a party to this Agreement, or
(ii) with respect to an assignment, acquisition, designation of a new applicable lending office or
the appointment of a successor Issuer, Lender, or Administrative Agent, on the effective date of
such assignment, acquisition, designation or appointment, except (x) to the extent that such
Person’s predecessor was entitled to such amounts (or in the case of a designation of a new
applicable lending office, to the extent such Person was entitled to such amounts with respect to
its prior applicable lending office), or (y) if the assignment, acquisition, designation of a new
applicable lending office or the appointment of a successor Issuer, Lender, or Administrative
Agent, occurs as a result of Borrower’s request pursuant to Section 2.20(a) (for the avoidance of
doubt, any withholding Tax imposed as a result of a Change in Law after the date such Person
becomes a party to this Agreement will not be an Excluded Tax); (c) Taxes imposed by reason of the
failure of the Agent, Lender, Issuer, or any of their respective affiliates to provide the forms
required by Sections 2.19(e) and 2.19(f); and (d) Taxes imposed as a result of the Administrative
Agent’s, Lender’s, Issuer’s or their respective affiliates’ gross negligence or willful misconduct.

     “Fair Market Value” shall mean the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress of either party, determined in
good faith by (i) the Board of Directors of the applicable Loan Party (or any committee thereof
expressly authorized by the Board of Directors) with respect to assets and Investments having a
Fair Market Value of $100,000,000 or more and (ii) a Financial Officer of the applicable Loan Party
with respect to assets and Investments having a Fair Market Value less than $100,000,000.

     “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing selected by it.

     “Fee Letter” shall mean the letter, dated as of the Signing Date, addressed to the
Borrower from the Administrative Agent with respect to certain fees to be paid from time to time to
the Administrative Agent.

     “FERC” shall mean the Federal Energy Regulatory Commission or its successor.

     “FERC 205 Contracts” shall mean power purchase and sale agreements between the
Borrower and the Subsidiary Guarantors under which the parties enter into Commodity Hedging
Transactions with each other, as approved by FERC under Section 205 of the FPA, as amended.

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     “Financial Covenants” shall mean the negative covenants set forth in Sections 6.12 and
6.13.

     “Financial Institution” shall mean a bank, an investment bank or an Affiliate of a
bank or an investment bank.

     “Financial Officer” of any Person shall mean any of the chief executive officer, chief
financial officer, or treasurer (or if no individual shall have such designation, the individual
charged by the Board of Directors of such Person with such powers and duties as are customarily
bestowed upon the individual with such designation) or the audit or finance committee of the Board
of Directors of such Person.

     “Financial Statement Delivery Failure Date” shall have the meaning specified in the
definition of “Applicable Margin”.

     “Fitch” shall mean Fitch Ratings, Ltd. or any successor entity.

     “Foreign Lender” shall mean any Lender that is organized under the laws of a
jurisdiction other than the laws of the United States of America or any state or district thereof.

     “Foreign Pledge Agreement” means a pledge or charge agreement with respect to the
Collateral that constitutes Equity Interests of a Foreign Subsidiary, in form and substance
reasonably satisfactory to the Collateral Agent.

     “Foreign Subsidiary” shall mean (a) any Subsidiary that is organized under the laws of
a jurisdiction other than the United States of America, any state thereof or the District of
Columbia, (b) any Subsidiary if (i) for United States federal income tax purposes, substantially
all of the assets of such Subsidiary consist of stock of “controlled foreign corporations,” as
defined in Section 957(a) of the Tax Code (“CFC”) and (ii) such Subsidiary does not have
any material assets or Indebtedness other than the stock of its Subsidiaries and any intercompany
Indebtedness owed to or from the Borrower or another Subsidiary and does not engage in any
operations other than the ownership of such assets and activities incidental thereto, and (c) any
Subsidiary of a CFC.

     “FPA” shall mean the Federal Power Act and the rules and regulations promulgated
thereunder, as amended from time to time.

     “Funds Availability Date” shall mean the date on which all conditions precedent set
forth in Section 4.03 shall have been satisfied (or waived in accordance with Section 9.08).

     “Funds Availability Date Appraisal” shall mean an appraisal performed on a cash flow
basis (and, to the extent expressed in a range, using the midpoint of such range), all costs of
which shall be borne by the Borrower, of all of the Core Assets conducted by Stone & Webster
Management Consultants, Inc., or at the Borrower’s request, another appraiser selected by the
Borrower with the consent of the Arrangers, which consent shall not be unreasonably withheld.

     “Funds Availability Indebtedness” shall mean any unsecured Indebtedness of the
Borrower that may be issued, together with the Senior Notes, on terms and conditions reasonably
acceptable to the Arrangers and the Required Lenders to satisfy the condition precedent set forth
in Section 4.03(i); provided that (a) such Funds Availability Indebtedness shall be on
terms no

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less favorable to the Lenders than the Senior Notes and is otherwise on terms no more
restrictive than the Senior Notes and (b) such Funds Availability Indebtedness has its Stated
Maturity at least 91 days later than the Revolving Credit Maturity Date.

     “Funds Availability Indebtedness Documents” shall mean the indenture or indentures
(including any supplements thereto) or other agreements under which any Funds Availability
Indebtedness is issued or incurred and all other instruments, agreements and other documents
evidencing or governing any Funds Availability Indebtedness and any related Funds Availability
Indebtedness Guarantees, in each case as the same may be amended or supplemented from time to time
in accordance with the terms hereof and thereof.

     “Funds Availability Indebtedness Guarantees” shall mean the documents evidencing the
unsecured Guarantees by the Subsidiary Guarantors of the Borrower’s obligations under any Funds
Availability Indebtedness and the related Funds Availability Indebtedness Documents, which
Guarantees shall be subordinated to the Secured Obligations hereunder on terms no less favorable to
the Lenders than the Senior Notes Guarantees and otherwise on terms no more restrictive than the
Senior Notes Guarantees.

     “GAAP” shall mean generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect from time to time; provided, however,
that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to
any provision hereof to eliminate the effect of any change occurring after the Funds Availability
Date in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be interpreted on the
basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith.

     “General Intangibles” shall have the meaning assigned to such term in the UCC.

     “Governmental Authority” shall mean the government of the United States of America or
any other nation, any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of
government or any governmental or non-governmental authority regulating the generation and/or
transmission of energy.

     “Granting Lender” shall have the meaning assigned to such term in Section 9.04(i).

     “Guarantee” shall mean a guarantee, other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or indirect, in any manner,
including by way of a pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to

19

 

take or pay or to maintain financial statement conditions or otherwise); provided that
standard contractual indemnities which do not relate to Indebtedness shall not be considered a
Guarantee.

     “Guarantee and Collateral Agreement” shall mean the Guarantee and Collateral
Agreement, substantially in the form of Exhibit O, executed and delivered by, inter alia,
the Collateral Agent, the Administrative Agent, the Borrower and each Subsidiary Guarantor on the
Funds Availability Date.

     “Guarantee Joinder and Assumption Agreement” shall have the meaning given such term in
the Guarantee and Collateral Agreement.

     “Hazardous Materials” shall mean (a) any petroleum products or byproducts, coal ash,
coal combustion by-products or waste, boiler slag, scrubber residue, flue desulfurization material,
radon gas, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
chlorofluorocarbons and all other ozone-depleting substances and (b) any chemical, material,
substance or waste that is prohibited, limited or regulated by or pursuant to any Environmental
Law; provided, however, that “Hazardous Materials” shall not include any
Nuclear Materials or the radioactive constituents of mixed waste.

     “Hedge Outstanding Amount” shall have the meaning assigned to such term in the
Intercreditor Agreement.

     “Hedging Obligations” shall mean, with respect to any specified Person, the Interest
Rate/Currency Hedging Obligations and the Commodity Hedging Obligations of such Person.

     “Hedging Transactions” shall mean all Interest Rate Hedging Transactions, Currency
Hedging Transactions, Commodity Hedging Transactions and all other similar agreements or
arrangements designed to alter the risks of any Person arising from fluctuations in interest rates,
currency values or commodity prices.

     “Immaterial Subsidiary” shall mean on any date, any Subsidiary of the Borrower (other
than any Core Asset Subsidiary or EquaGen (if EquaGen becomes a Subsidiary)) that (i) had less than
2.5% of consolidated assets or 2.5% of consolidated revenues of the Borrower and its Restricted
Subsidiaries as reflected on the most recent financial statements delivered in accordance with
Section 5.05 prior to such date and (ii) has been designated as such by the Borrower in a written
notice delivered to the Administrative Agent and the Collateral Agent (other than any Subsidiary as
to which the Borrower has revoked such designation by written notice to the Administrative Agent
and the Collateral Agent); provided, however, that at no time shall all Immaterial
Subsidiaries so designated by the Borrower have in the aggregate consolidated assets or annual
consolidated revenues (as reflected on the most recent financial statements delivered in accordance
with Section 5.05 prior to such time) in excess of 7.5% of consolidated assets or annual
consolidated revenues, respectively, of the Borrower and its Restricted Subsidiaries.

     “Increased Commitment Date” shall have the meaning provided in Section 2.21(a).

     “Indebtedness” of any Person shall mean, without duplication and whether or not
contingent, (a) all indebtedness of such Person for borrowed money (including indebtedness with
respect to any Credit Support Facilities), (b) all obligations of such Person evidenced by notes,
bonds, debentures or similar instruments, (c) all reimbursement and all obligations with respect to

20

 

letters of credit, bankers’ acceptances, surety bonds and performance bonds, whether or not
matured, (d) all indebtedness for the deferred purchase price of property or services, other than
trade payables incurred in the ordinary course of the Permitted Business, (e) all indebtedness of
such Person created or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such
property), (f) all Capital Lease Obligations of such Person and all Attributable Debt in respect of
sale and leaseback transactions, (g) all Guarantee obligations of such Person, (h) unfunded vested
benefits under plans covered by Title IV of ERISA, (i) Hedging Obligations if and to the extent
they would appear as a liability on a balance sheet prepared in accordance with GAAP, (j) all
Indebtedness of the type referred to above secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property
(including Accounts and General Intangibles) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness, (k) unfunded amounts in respect of
Indebtedness incurred by the Borrower and its Restricted Subsidiaries in good faith to invest in
nuclear decommissioning trusts or to comply with decommissioning agreements, and (l) contingent
adjustments or earn-outs when they are required to be recognized as a liability on the balance
sheet in accordance with GAAP.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

     “Indemnitee” shall have the meaning assigned to such term in Section 9.05(b).

     “Ineligible Assignee” means (i) a natural Person, (ii) the Borrower, any Affiliate of
the Borrower or any other Person taking direction from, or working in concert with, the Borrower or
any of the Borrower’s Affiliates, (iii) Entergy (whether or not an Affiliate of the Borrower) and
(iv) a Person that has taken any action or is the subject of any bankruptcy or insolvency
proceeding under any Bankruptcy Law.

     “Information” shall have the meaning assigned to such term in Section 9.16.

     “Initial Appraised Value” shall mean the appraised value determined on a cash flow
basis (and, to the extent expressed in a range, using the midpoint of such range) of all of the
Core Assets as set forth in the Funds Availability Date Appraisal.

     “Intellectual Property Collateral” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Intellectual Property Security Agreements” shall mean all Intellectual Property
Security Agreements executed and delivered by the Loan Parties, each substantially in the
applicable form required by the Guarantee and Collateral Agreement, as the same may be amended,
restated, supplemented or otherwise modified from time to time in accordance with the terms hereof
and thereof.

     “Intercompany Debt Subordination Agreement” shall mean an Intercompany Debt
Subordination Agreement substantially in the form of Exhibit B pursuant to which
intercompany obligations and advances owed by any Loan Party to a Person that is not a Loan Party
are required to be subordinated to the Secured Obligations pursuant to Section 6.01(h).

21

 

     “Intercreditor Agreement” shall mean that certain Collateral Agency and Intercreditor
Agreement dated as of the Signing Date, executed and delivered by, inter alia, the Collateral
Agent, the Administrative Agent, and the Borrower.

     “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the last Business
Day of each March, June, September and December and the Revolving Credit Termination Date and (b)
with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part; provided, however, that (i) in the case of
a Eurodollar Borrowing with an Interest Period of more than three months’ duration, Interest
Payment Date shall mean each day that would have been an Interest Payment Date had successive
Interest Periods of three months’ duration been applicable to such Borrowing and (ii) with respect
to ABR Loans, for interest accrued for the period between the Funds Availability Date and the end
of the first fiscal quarter thereafter, the Interest Payment Date for such interest shall be the
last Business Day of the next following fiscal quarter.

     “Interest Period” shall mean with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending seven days thereafter or on the numerically
corresponding day in the calendar month that is 1, 2, 3 or 6 months thereafter (or 9 or 12 months
thereafter if, at the time of the relevant Borrowing, an interest period of such duration is
available to all Lenders participating therein), in each case as the Borrower may elect;
provided, however, that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar month, in which case such
Interest Period shall end on the next preceding Business Day, (ii) any Interest Period (other than
an Interest Period of seven days) that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last calendar month of such
Interest Period) shall end on the last Business Day of the last calendar month of such Interest
Period and (iii) the Borrower may not select an Interest Period that ends after the Revolving
Credit Maturity Date. Interest shall accrue from and including the first day of an Interest Period
to but excluding the last day of such Interest Period. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such Borrowing.

     “Interest Rate Hedging Transactions” shall mean all interest rate swap agreements,
interest rate cap agreements, interest rate collar agreements, interest rate insurance and other
agreements or arrangements designed to manage interest rates or interest rate risk.

     “Interest Rate/Currency Hedging Obligations” shall mean, with respect to any specified
Person, the obligations of such Person under Interest Rate Hedging Transactions and Currency
Hedging Transactions.

     “Investment Company Act” shall have the meaning assigned to such term in Section 3.12.

     “Investments” shall mean, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations), advances or capital contributions, purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with
all items that are or would be classified as investments on a balance sheet prepared in accordance
with GAAP. If the Borrower or any Subsidiary sells or otherwise disposes of any Equity Interests
of any direct or

22

 

indirect Subsidiary such that, after giving effect to any such sale or disposition, such
Person is no longer a Subsidiary, the Borrower will be deemed to have made an Investment on the
date of any such sale or disposition equal to the Fair Market Value of the Borrower’s Investments
in such Subsidiary that were not sold or disposed of. The acquisition by the Borrower, or by any
Restricted Subsidiary, of a Person that holds an Investment in a third Person will be deemed to be
an Investment by the Borrower or such Subsidiary in such third Person in an amount equal to the
Fair Market Value of the Investments held by the acquired Person in such third Person. Except as
otherwise provided in this Agreement, the amount of an Investment will be determined at the time
the Investment is made and without giving effect to subsequent changes in value.

     “Issue” shall mean, with respect to any Letter of Credit, to issue, amend, extend the
expiry of, renew or increase the maximum face amount (including by deleting or reducing any
scheduled decrease in such maximum face amount) of, such Letter of Credit. The terms
“Issued”, “Issuance” and “Issuing” shall have a corresponding meaning.

     “Issuer” shall mean each Lender or Affiliate of a Lender that (a) is listed on the
signature pages hereof as an “Issuer” and that has entered into the Letter of Credit Fee
Letter or (b) hereafter becomes an Issuer with the approval of the Administrative Agent and the
Borrower by agreeing, pursuant to an agreement with and in form and substance satisfactory to the
Administrative Agent and the Borrower, to be bound by the terms hereof applicable to Issuers and by
becoming party to the Letter of Credit Fee Letter, in each case so long as such Issuer shall not
have tendered notice of its resignation in accordance with Section 2.03(l) or Section 8.08.

     “Joinder Agreement” shall mean an agreement substantially in the form of Exhibit
I.

     “Key Contracts” shall mean those contracts set forth on Schedule 1.01(b) that
evidence Contractual Obligations of EquaGen or its subsidiaries owing to any Core Asset Subsidiary
for the maintenance and operation of nuclear power facilities owned by such Core Asset Subsidiary,
as such schedule shall be updated from time to time in accordance with Section 5.05(c).

     “L/C Cash Collateral Account” shall mean any interest-bearing Deposit Account or
Securities Account that is (a) established by the Administrative Agent from time to time in its
sole discretion to receive cash and Cash Equivalents (or purchase cash or Cash Equivalents with
funds received) from the Loan Parties or Persons acting on their behalf pursuant to the Loan
Documents, (b) with such depositaries and securities intermediaries as the Administrative Agent may
determine in its sole discretion, (c) in the name of the Administrative Agent for the benefit of
the Senior Secured Parties (although such account may also have words referring to the Borrower and
the account’s purpose), (d) under the control of the Administrative Agent and (e) in the case of a
Securities Account, with respect to which the Administrative Agent shall be the entitlement holder
and the only Person authorized to give entitlement orders with respect thereto. For the avoidance
of doubt, any such L/C Cash Collateral Account will be a “Designated Asset” for purposes of and as
defined in the Intercreditor Agreement.

     “Lenders” shall mean each financial institution or other entity that (a) is listed on
the signature pages hereof as a “Lender” or (b) from time to time becomes a party hereto by
execution of an Assignment and Acceptance (other than any such Person that has ceased to be a party
hereto pursuant to an Assignment and Acceptance). Unless the context otherwise requires, the term
“Lenders” shall include the Issuers.

     “Letter of Credit” shall mean any letter of credit Issued pursuant to Section 2.03.

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     “Letter of Credit Fee Letter” shall mean a fee letter among the Borrower and all the
Issuers setting forth the fronting fees payable to all Issuers in respect of Letters of Credit
pursuant to Section 2.05(b)(i).

     “Letter of Credit Issuer Agreements” shall mean an agreement setting forth the Letter
of Credit Sublimit for such Issuer (as determined by such Issuer in its sole discretion) and any
other applications, agreements or other documentation, in form and substance reasonably acceptable
to the relevant Issuer of a Letter of Credit, which an Issuer generally employs in the ordinary
course of its business for the Issuance of a Letter of Credit.

     “Letter of Credit Obligations” shall mean, at any time, the dollar amount of the
aggregate Reimbursement Obligations at such time together with the aggregate Letter of Credit
Undrawn Amounts for each Issuer at such time.

     “Letter of Credit Request” shall have the meaning specified in Section 2.03(c).

     “Letter of Credit Sublimit” shall mean, with respect to any Issuer, the maximum
aggregate principal amount of Letter of Credit Obligations of such Issuer.

     “Letter of Credit Undrawn Amounts” shall mean, with respect to any Issuer at any time,
the aggregate undrawn face amount of all Letters of Credit Issued by such Issuer and outstanding at
such time.

     “LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest
Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m.,
London time, on the date that is two Business Days prior to the commencement of such Interest
Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in
dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other
service selected by the Administrative Agent which has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying such rates) for a
period equal to such Interest Period; provided that, to the extent that an interest rate is
not ascertainable pursuant to the foregoing provisions of this definition, the “LIBO Rate”
shall be the interest rate per annum determined by the Administrative Agent to be the average of
the rates per annum at which deposits in dollars are offered for such relevant Interest Period to
major banks in the London interbank market in London, England by the Administrative Agent at
approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning
of such Interest Period.

     “Lien” shall mean, with respect to any asset (a) any mortgage, deed of trust, deed to
secure debt, lien (statutory or otherwise), pledge, hypothecation, encumbrance, restriction,
collateral assignment, charge or security interest in, on or of such asset; (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of the foregoing)
relating to such asset; and (c) in the case of Equity Interests, any purchase option, call or
similar right of a third party with respect to such Equity Interests. For the avoidance of doubt,
“Lien” shall not be deemed to include licenses of Intellectual Property (as defined in the
Guarantee and Collateral Agreement).

     “Loan Documents” shall mean this Agreement, any Notes delivered hereunder, the
Security Documents, the Fee Letter, the Letter of Credit Fee Letter, any Intercompany Debt

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Subordination Agreement and each certificate, agreement or document executed by a Loan Party
and delivered to the Arrangers, the Administrative Agent, the Collateral Agent or any Lender in
connection with or pursuant to any of the foregoing.

     “Loan Party” shall mean the Borrower and each Subsidiary Guarantor.

     “Loans” shall mean the revolving loans made by the Lenders to the Borrower pursuant to
Section 2.01.

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” shall mean any material adverse change in or material
adverse effect on (i) the business, financial condition, results of operations, performance, assets
or liabilities, or prospects of the Borrower and its Restricted Subsidiaries, taken as a whole,
(ii) the ability of the Borrower and the Subsidiary Guarantors, taken as a whole, to perform their
payment obligations under this Agreement or the other Loan Documents or (iii) the rights and
remedies of the Arrangers, the Administrative Agent, the Collateral Agent or the Lenders hereunder
or thereunder.

     “Material Contract” shall mean those contracts to which the Borrower or any Restricted
Subsidiary is party, the breach or termination (other than at the expiration of its term) of which
could reasonably be expected to have a Material Adverse Effect, in each case listed on Schedule
1.01(d), as such schedule shall be updated from time to time in accordance with section
5.05(c).

     “Material Indebtedness” shall mean (i) Indebtedness for money borrowed (other than the
Loans, Letters of Credit and Hedging Obligations) of any one or more of the Borrower or any of the
Restricted Subsidiaries in an aggregate principal amount at any given time equal to or exceeding
$50,000,000, or (ii) Hedging Obligations with Hedge Outstanding Amounts (including, for purposes of
this definition, the method of calculation of “Hedge Outstanding Amount” specified in the proviso
to such definition) in the aggregate at any given time equal to or exceeding $50,000,000.

     “Material Lease” shall mean a lease with respect to real property with annual payments
in excess of $1,500,000.

     “Maximum Rate” shall have the meaning assigned to such term in Section 9.09.

     “Minority Investment” shall mean any Person (other than a Subsidiary) in which the
Borrower or any Restricted Subsidiary owns Capital Stock.

     “Modification” shall have the meaning assigned to such term in Section 9.17(a).

     “Modification Endorsement” shall have the meaning assigned to such term in Section
9.17(c).

     “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor entity.

     “Mortgaged Properties” shall mean on the Funds Availability Date, each parcel of real
property and the improvements located thereon and appurtenants thereto owned or leased by a Loan
Party and specified on Schedule 3.07 (and shall include each other parcel of real property

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and improvements located thereon with respect to which a Mortgage is granted pursuant to
Section 5.10 or 5.11).

     “Mortgages” shall mean the mortgages, deeds of trust, leasehold mortgages, assignments
of leases and rents, modifications, amendments and restatements of the foregoing and other security
documents granting a Lien on any Mortgaged Property to secure the Secured Obligations, each
substantially in the form of Exhibit P (subject to changes in form and additions or
omissions of provisions as appropriate for the applicable jurisdiction in which such real property
is located) with such changes as are reasonably satisfactory to the Borrower (which shall be
evidenced by the signature thereof by the applicable Loan Party) and the Collateral Agent, in each
case, as the same may be amended, restated, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

     “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)
of ERISA.

     “Necessary CapEx Debt” shall mean Indebtedness of the Borrower or its Restricted
Subsidiaries incurred for the purpose of financing Necessary Capital Expenditures.

     “Necessary Capital Expenditures” shall mean capital expenditures (other than
Environmental Capital Expenditures) that are (i) required by Applicable Law, (ii) undertaken for
health and safety reasons, or (iii) undertaken to increase the reliability of or to re-power any
power generation facility.

     “Net Cash Proceeds” shall mean the proceeds received by the Borrower or any of its
Restricted Subsidiaries after the Funds Availability Date in cash or Cash Equivalents from any
Recovery Event, net of (i) all fees and expenses related to such Recovery Event (including fees and
expenses paid or reasonably estimated by the Borrower to be payable) and taxes paid or payable by
the Borrower and the Restricted Subsidiaries in connection therewith and the Borrower’s good faith
estimate of any other taxes to be paid or payable in connection with such Recovery Event and (ii)
the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness
(other than Indebtedness secured by Collateral) which is secured by the Core Asset transferred,
taken or sold in such Recovery Event and which is required to be repaid with such proceeds.

     “New Commitments” shall have the meaning assigned to such term in Section 2.21(a).

     “New Lender” shall have the meaning assigned to such term in Section 2.21(b).

     “Non-Consenting Lender” shall have the meaning assigned to such term in Section
9.08(c).

     “Non-Public Information” shall mean information that has not been disseminated in a
manner making it available to investors generally, within the meaning of Regulation FD.

     “Note” shall mean a promissory note of the Borrower payable to the order of any Lender
requesting a promissory note in a principal amount equal to the amount of such Lender’s Commitments
evidencing the aggregate Indebtedness of the Borrower to such Lender resulting from the Loans owing
to such Lender.

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     “Notice of Continuation or Conversion” shall have the meaning assigned to such term in
Section 2.10.

     “Nuclear Laws” shall mean the Atomic Energy Act of 1954 (as amended), the Energy
Reorganization Act of 1974 (as amended), and the Nuclear Waste Policy Act of 1982 (as amended), and
any related rules, regulations or administrative decisions of the U.S. Nuclear Regulatory
Commission or any State that has entered into an agreement with the U.S. Nuclear Regulatory
Commission under Section 274 of the Atomic Energy Act of 1954 (as amended) (“Agreement
State”).

     “Nuclear Materials” shall mean source, by product, or special nuclear material and
radioactive waste material, or other similar material, regulated under the Nuclear Laws, including
the radioactive constituents of mixed waste.

     “Nuclear Stations” shall have the meaning assigned to such term in Section 3.25.

     “NY Real Property Subsidiary” shall mean any Restricted Subsidiary that at any time
owns, or holds a leasehold estate in (i) the generation and related real property and personal
property assets with respect to the Indian Point 2 and Indian Point 3 nuclear power facilities
located in Westchester County, New York, (ii) the generation and related real property and personal
property assets with respect to the FitzPatrick nuclear power facility located in Oswego County,
New York and (iii) any other real property located in the State of New York with a Fair Market
Value in excess of $20,000,000. The NY Real Property Subsidiaries as of the Funds Availability
Date are set forth on Schedule 3.08.

     “NYPA” shall mean the New York Power Authority (f/k/a the Power Authority of the State
of New York).

     “Other Taxes” shall mean any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies (including interest, fines, penalties
and additions to tax) arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

     “Outside Date” shall mean October 1, 2009.

     “Patriot Act” shall mean the USA Patriot Act of 2001 (31 U.S.C. 5318 et seq.).

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA and any successor entity performing similar functions.

     “Perfection Certificate” shall mean the Perfection Certificate dated as of the Funds
Availability Date, executed and delivered by the Borrower on behalf of itself and each Subsidiary
Guarantor, as the same may be amended, restated, supplemented or otherwise modified from time to
time.

     “Permit” shall mean any permit, approval, authorization, license, variance or
permission required from a Governmental Authority under any Applicable Law.

     “Permitted Acquisition” shall mean a Proposed Acquisition; provided that (a)
such acquisition and all transactions related thereto shall be consummated in accordance with all

27

 

Applicable Laws; (b) if such Proposed Acquisition is effected pursuant to an acquisition of
Capital Stock, the issuer of such Capital Stock shall become a Restricted Subsidiary and, to the
extent required by Section 5.10, a Subsidiary Guarantor; (c) such Proposed Acquisition shall result
in the Collateral Agent, for the benefit of the Senior Secured Parties, being granted a security
interest in any Capital Stock and/or any assets so acquired to the extent required by Sections 5.10
and/or 5.11; (d) after giving effect to such Proposed Acquisition, no Default or Event of Default
shall have occurred and be continuing and the representations and warranties made by the Loan
Parties in any Loan Document shall be true and correct in all material respects (except to the
extent such representations are qualified as to materiality, in which case they shall be true and
correct in all respects) as of the date of such acquisition (except to the extent that such
representations and warranties relate to an earlier date, in which case they shall be true and
correct as of such earlier date); and (e) the Borrower shall be in compliance, on a pro forma basis
after giving effect to such Proposed Acquisition (including any Indebtedness assumed or permitted
to exist or incurred pursuant to Sections 6.01(o) and 6.01(p), respectively), with the Financial
Covenants, as such covenants are recomputed as of the last day of the most recently ended fiscal
quarter for which financial statements are required to be delivered pursuant to Sections 5.05(a) or
5.05(b) as if such Proposed Acquisition had occurred on the first day of the applicable Test
Period.

     “Permitted Business” shall mean (i) the generation, production, transmission,
transportation, storage, processing and distribution of energy and fuels for the production of
energy, (ii) the marketing and sales and other transactions (excluding trading) of energy and
energy-related products in the wholesale and retail markets and financial and derivative energy and
energy-related products and instruments, in each case except as prohibited by Section 6.15, (iii)
development of new energy sources, facilities and related technologies and (iv) activities
reasonably related, ancillary, incidental or complementary to the foregoing activities.

     “Permitted Disposition” shall mean the transactions described on Schedule
1.01(c) hereto.

     “Permitted Liens” shall mean Liens permitted by Section 6.02.

     “Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Borrower or
any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
refund, refinance, replace, defease or discharge, other Indebtedness of the Borrower or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); provided that (a) the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does
not exceed the principal amount (or accreted value, if applicable) of the Indebtedness extended,
refinanced, renewed, replaced, defeased or refunded (plus all accrued and unpaid interest
on such Indebtedness and the amount of all expenses and premiums incurred in connection therewith);
(b) such Permitted Refinancing Indebtedness has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded; (c) if the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded is subordinated in right of payment to the Secured
Obligations hereunder, such Permitted Refinancing Indebtedness is subordinated in right of payment
to the Secured Obligations hereunder on terms at least as favorable to the Lenders as those
contained in the documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; (d) such Indebtedness is incurred either by the Borrower or by the
Restricted Subsidiary who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded (and may be guaranteed by any Subsidiary

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Guarantor to the extent permitted by Section 6.01(k)); and (e)(i) if the Stated Maturity of
the Indebtedness being refinanced is earlier than the Revolving Credit Maturity Date, the Permitted
Refinancing Indebtedness has its Stated Maturity no earlier than the Stated Maturity of the
Indebtedness being refinanced or (ii) if the Stated Maturity of the Indebtedness being refinanced
is later than the Revolving Credit Maturity Date, the Permitted Refinancing Indebtedness has its
Stated Maturity at least 91 days later than the Revolving Credit Maturity Date.

     “Permitted Reinvestment”, with respect to any Recovery Event, shall mean (i) the
acquisition by any Loan Party of replacement assets useful in the Permitted Business and that shall
(after giving effect to any time periods provided for that type of asset in Section 5.10)
constitute Collateral, (ii) reinvesting in the Permitted Business in assets and that shall (after
giving effect to any time periods provided for that type of asset in Section 5.10) constitute
Collateral, and/or (iii) the repair of the assets that were damaged or destroyed as a result of the
applicable Recovery Event; provided, however, that any such replacement or
reinvestment assets may take the form of real property located in the State of New York (which
would otherwise be an Excluded Asset) if such replacement or reinvestment asset is directly owned
by a Subsidiary Guarantor.

     “Person” shall mean any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited liability company or
government or other entity.

     “Pledged Securities” shall have the meaning assigned to such term in the Guarantee and
Collateral Agreement.

     “Post-Recovery Event Appraised Value” shall mean the appraised value determined on a
cash flow basis (and, to the extent expressed in a range, using the midpoint of such range) of all
of the Core Assets as set forth in the Recovery Event Appraisal.

     “Proposed Acquisition” shall mean an acquisition (whether pursuant to an acquisition
of Capital Stock, assets or otherwise) by the Borrower or any of its Restricted Subsidiaries from
any Person of all or substantially all of the assets of a Person or a line of business of a Person.

     “PUHCA” shall mean the Public Utility Holding Company Act of 2005 and the rules and
regulations promulgated thereunder, effective February 8, 2006.

     “PURPA” shall mean the Public Utility Regulatory Policies Act of 1978 and the rules
and regulations promulgated thereunder, as amended from time to time.

     “QF” shall mean a “qualifying facility” under PURPA.

     “Qualified Counterparty” shall have the meaning assigned to such term in the
Intercreditor Agreement.

     “Ratable Portion” or (other than in the expression “equally and ratably”) “ratably”
shall mean, with respect to any Lender, the percentage obtained by dividing (i) the Commitments of
such Lender by (ii) the aggregate Commitments of all Lenders (or, at any time after the Revolving
Credit Termination Date, the percentage obtained by dividing the aggregate outstanding principal
balance of the Revolving Credit Outstandings owing to such Lender by the

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aggregate outstanding principal balance of the Revolving Credit Outstandings owing to all
Lenders).

     “Rate” shall have the meaning set forth in the definition of Type.

     “Recovery Event” shall mean an event or series of related events resulting in (a) the
loss of or damage to the Core Assets for which the greater of (i) the value of the impaired portion
of the asset or (ii) the value of the claim, in each case as determined by the insurance appraiser,
exceeds $500,000,000 or (b) a taking under power of eminent domain or by condemnation or similar
proceeding of or relating to the Core Assets for which the compensation payments exceed
$500,000,000.

     “Recovery Event Appraisal” shall mean an appraisal performed on a cash flow basis
(and, to the extent expressed in a range, using the midpoint of such range), all costs of which
shall be borne by the Borrower, of all of the Core Assets conducted by Stone & Webster Management
Consultants, Inc., or at the Borrower’s request, another appraiser selected by the Borrower with
the consent of the Administrative Agent, which consent shall not be unreasonably withheld.

     “Reference Date” shall have the meaning set forth in the definition of Available
Amount.

     “Register” shall have the meaning assigned to such term in Section 9.04(d).

     “Registration Statement” shall mean the Registration Statement on Form 10, Amendment
No. 3, under the Exchange Act, of the Borrower filed with the SEC on November 21, 2008, including
the exhibits filed therewith, and the information statement contained therein, including any
amendment or modification of the terms thereof (except to the extent that such amendment or
modification is materially adverse to the Lenders, in which case the Arrangers and the Required
Lenders shall have given their prior written consent to such amendment or modification).

     “Regulation FD” shall mean Regulation FD as promulgated by the SEC under the
Securities Act and Exchange Act as in effect from time to time.

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof

     “Reimbursement Date” shall have the meaning specified in Section 2.03(h).

     “Reimbursement Obligations” shall mean, as and when matured, the obligation of the
Borrower to pay all reimbursement or repayment obligations of the Borrower to any Issuer with
respect to amounts drawn under Letters of Credit.

     “Reinvestment Cash Collateral Account” shall mean any interest-bearing Deposit Account
or Securities Account that is established by the Collateral Agent from time to time in accordance
with Section 2.12(c) to receive insurance proceeds from the Loan Parties or Persons

30

 

acting on their behalf pursuant to the Loan Documents (a) with such depositaries and
securities intermediaries as the Collateral Agent may determine in its sole discretion, (b) in the
name of the Collateral Agent for the benefit of the Senior Secured Parties (although such account
may also have words referring to the Borrower and the account’s purpose), (c) under the control of
the Collateral Agent and (d) in the case of a Securities Account, with respect to which the
Collateral Agent shall be the entitlement holder and the only Person authorized to give Entitlement
Orders (as defined in the UCC) with respect thereto.

     “Reinvestment Commitment Reduction Date” shall mean the earlier of (i) unless the
Reinvestment Decision Date shall have first occurred, the 366th day following a Reinvestment Event
and (ii) the date that is 5 Business Days after the date on which the Borrower shall have notified
the Administrative Agent of the Borrower’s determination (a) not to acquire replacement assets
useful in the Permitted Business that shall constitute Collateral, (b) not to reinvest in the
Permitted Business that shall constitute Collateral and (c) not to effect repairs to the assets
damaged or destroyed, in each case with all or any portion of the relevant Reinvestment Deferred
Amount.

     “Reinvestment Decision Date” shall mean the date upon which the Borrower notifies the
Agents that it has formally begun seeking regulatory approval or begun contracting to (a) acquire
replacement assets useful in the Permitted Business that shall constitute Collateral, (b) reinvest
in the Permitted Business that shall constitute Collateral or (c) effect repairs to the assets
damaged or destroyed, in each case with the Net Cash Proceeds.

     “Reinvestment Deferred Amount” shall mean, with respect to any Net Cash Proceeds of
any Reinvestment Event, the portion of such Net Cash Proceeds subject to a Reinvestment Notice.

     “Reinvestment Event” shall mean any Recovery Event in respect of which the Borrower
has delivered a Reinvestment Notice; provided that such Reinvestment Notice is delivered to
the Administrative Agent and the Collateral Agent no later than 5 Business Days following the
completion and delivery to the Borrower of the Recovery Event Appraisal.

     “Reinvestment Notice” shall mean a written notice to the Administrative Agent and
Collateral Agent executed by a Responsible Officer of the Borrower relating to a Recovery Event
stating that the Borrower (directly or indirectly through one of its Subsidiaries) intends and
expects to utilize the Allocated Net Cash Proceeds from such Recovery Event for Permitted
Reinvestments.

     “Related Agreements” shall have the meaning assigned to such term in the Intercreditor
Agreement.

     “Related Fund” shall mean, with respect to any Lender that is a fund that invests in
bank loans, any other fund that invests in bank loans and is advised or managed by such Lender, an
Affiliate of such Lender, the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

     “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, partners, members, trustees, employees, agents,
sub-agents and advisors of such Person and such Person’s Affiliates.

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     “Release” shall mean any release, spill, emission, leaking, pumping, injection,
pouring, emptying, deposit, disposal, discharge, dispersal, dumping, escaping, leaching or
migration into or through the environment or within or upon any building, structure, facility or
fixture. The term “Released” shall have a corresponding meaning.

     “Reorganization” shall have the meaning assigned to such term in the preamble hereof.

     “Required Lenders” shall mean, collectively, (a) from and after the Signing Date and
on and prior to the earlier of (i) the Revolving Credit Termination Date and (ii) the date of the
termination of the Commitments pursuant to Section 9.20, more than fifty percent (50%) of the
aggregate outstanding amount of the Commitments and (b) after the Revolving Credit Termination
Date, more than fifty percent (50%) of the aggregate Revolving Credit Outstandings. No Defaulting
Lender shall be included in the calculation of “Required Lenders.”

     “Responsible Officer” shall mean a Financial Officer, president, vice president,
executive vice president, senior vice president, treasurer, general counsel or controller of a Loan
Party and any other officer or employee of the applicable Loan Party so designated by any of the
foregoing officers in a notice to the Administrative Agent and/or the Arrangers, as applicable.
Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

     “Restricted Subsidiary” shall mean each wholly-owned Subsidiary that is not an
Unrestricted Subsidiary.

     “Revolving Credit Borrowing” shall mean a Borrowing comprised of Loans.

     “Revolving Credit Maturity Date” shall mean the date occurring on the third
anniversary of the Signing Date.

     “Revolving Credit Outstandings” shall mean, at any particular time, the sum of (a) the
principal amount of the Loans outstanding at such time and (b) the Letter of Credit Obligations
outstanding at such time.

     “Revolving Credit Termination Date” shall mean the earliest of (a) the Revolving
Credit Maturity Date, (b) the date of termination of all of the Commitments pursuant to Section
2.09 and (c) the date on which the Secured Obligations arising hereunder become due and payable
pursuant to Section 7.03.

     “S&P” shall mean Standard & Poor’s Ratings Group, Inc. or any successor entity.

     “SEC” shall mean the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Secured Obligations” shall have the meaning specified in the Intercreditor Agreement.

     “Secured Obligations Representative” shall have the meaning specified in the
Intercreditor Agreement.

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     “Securities Account” shall have the meaning assigned to such term in the UCC.

     “Securities Account Control Agreement” has the meaning specified in the Guarantee and
Collateral Agreement.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time,
and any successor statute.

     “Security” shall mean any Capital Stock, Capital Stock Equivalents, voting trust
certificate, bond, debenture, note or other evidence of Indebtedness, whether secured, unsecured,
convertible or subordinated, or any certificate of interest, share or participation in, any
temporary or interim certificate for the purchase or acquisition of, or any right to subscribe to,
purchase or acquire, any of the foregoing, but shall not include any evidence of the Secured
Obligations.

     “Security Documents” shall mean the Guarantee and Collateral Agreement, the Mortgages,
the Control Agreements, the Intellectual Property Security Agreements, the Intercreditor Agreement,
the Perfection Certificate and each of the other security agreements, pledges, mortgages,
assignments (collateral or otherwise), consents and other instruments and documents executed and
delivered pursuant to any of the foregoing or pursuant to Section 5.10 or 5.11 or otherwise
pursuant to the Intercreditor Agreement.

     “Senior Note Documents” shall mean the indenture or indentures (including any
supplements thereto) under which the Senior Notes are issued and all other instruments, agreements
and other documents evidencing or governing the Senior Notes and the related Senior Note
Guarantees, in each case as the same may be amended or supplemented from time to time in accordance
with the terms hereof and thereof.

     “Senior Note Guarantees” shall mean the documents evidencing the unsecured Guarantees
by the Subsidiary Guarantors of the Borrower’s obligations under the Senior Notes and the other
Senior Note Documents, which Guarantee shall be subordinated to the Secured Obligations hereunder
on terms reasonably satisfactory to the Arrangers and the Required Lenders.

     “Senior Notes” shall mean the Senior Notes issued by the Borrower in connection with
the Separation Transactions as described in the Description of Senior Notes.

     “Senior Secured Parties” shall have the meaning assigned to such term in the
Intercreditor Agreement.

     “Separation” shall have the meaning assigned to such term in the preamble hereof.

     “Separation Documents” shall mean (i) the Separation and Distribution Agreement by and
between Entergy and the Borrower, and (ii) the Amended and Restated Operating Agreement by and
among Entergy, the Borrower and EquaGen, each as in effect on the Funds Availability Date.

     “Separation Financing Documents” shall mean (i) the Senior Note Documents and (ii) any
Funds Availability Indebtedness Documents.

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     “Separation Transactions” shall mean the series of transactions pursuant to which
Entergy intends to effect the Separation.

     “Signing Date” shall mean the date on which all conditions precedent set forth in
Section 4.02 shall have been satisfied (or waived in accordance with Section 9.08).

     “Specified Commodity Hedging Transaction” shall have the meaning assigned to such term
in the Intercreditor Agreement.

     “Specified Credit Support Facility” shall have the meaning assigned to such term in
the Intercreditor Agreement.

     “SPV” shall have the meaning assigned to such term in Section 9.04(i).

     “Stated Maturity” shall mean, with respect to any installment of principal on any
series of Indebtedness, the date on which the payment of principal was scheduled to be paid in the
documentation governing such Indebtedness as of the date of its original incurrence or, if incurred
before the Signing Date, as of the Signing Date, and will not include any contingent obligations to
repay, redeem or repurchase any such principal prior to the date originally scheduled for the
payment thereof.

     “Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate
(without duplication) of the maximum reserve percentages (including any marginal, special,
emergency or supplemental reserves) expressed as a decimal established by the Board and any other
banking authority, domestic or foreign, to which the Administrative Agent or any Lender (including
any branch, Affiliate or other fronting office making or holding a Loan) is subject for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D
of the Board). Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration, exemptions or
offsets that may be available from time to time to any Lender under such Regulation D or any
comparable regulation. Statutory Reserves shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Subordinated Indebtedness” shall mean any Indebtedness incurred pursuant to Section
6.01(w) that is subordinated to the Secured Obligations on terms reasonably acceptable to the
Administrative Agent.

     “subsidiary” shall mean, with respect to any Person (herein referred to as the
“parent”), any corporation, partnership, limited liability company, association or other
entity of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or more than 50% of the general partnership interests
are, at the time any determination is being made, owned, controlled or held by the parent and/or
one or more subsidiaries of the parent.

     “Subsidiary” shall mean any subsidiary (direct or indirect) of the Borrower.

     “Subsidiary Guarantor” shall mean each wholly-owned Subsidiary that is not an Excluded
Subsidiary. For the avoidance of doubt, if at any time any Subsidiary Guarantor is designated as
an Excluded Subsidiary pursuant to and in accordance with Section 6.11, thereafter,

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such Subsidiary shall be deemed not to be a Subsidiary Guarantor. The Subsidiary Guarantors
as of the Funds Availability Date are specified on Schedule 3.08.

     “Supporting Obligation” shall have the meaning assigned to such term in the UCC.

     “Syndication Agent” shall have the meaning assigned to such term in the preamble.

     “Tax Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Taxes” shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges, liabilities or withholdings (including interest, fines, penalties or additions
to tax) imposed by any Governmental Authority.

     “Test Period” shall mean, for any determination under this Agreement, the four
consecutive fiscal quarters of the Borrower then last ended.

     “Total Commitments” shall mean, at any time, the aggregate amount of the Commitments,
as in effect at such time. The Total Commitments on the Signing Date is $1,175,000,000.

     “Transaction Documents” shall mean the Loan Documents and the Separation Documents.

     “Transactions” shall mean, collectively, (i) the Separation, (ii) the execution,
delivery and performance by the Loan Parties of the Transaction Documents to which they are a
party, including the Borrowings hereunder, the issuance of the Senior Notes, the issuance of
Letters of Credit and the use of proceeds of each of the foregoing, and (iii) the granting of Liens
pursuant to the Security Documents.

     “Type”, when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such Borrowing is determined.
For purposes hereof, the term “Rate” shall include the Adjusted LIBO Rate and the Base
Rate.

     “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York or
any other applicable jurisdiction.

     “Uniform Customs” shall have the meaning assigned to such term in Section 9.07.

     “Unrestricted Cash” shall mean all cash or Cash Equivalents (in each case, free and
clear of all Liens except nonconsensual Liens permitted by Section 6.02 and Liens of the Collateral
Agent pursuant to the Security Documents) included in the cash and cash equivalents accounts listed
on the consolidated balance sheet of the Borrower and its consolidated Subsidiaries as of such
date, but excluding cash or Cash Equivalents of any Unrestricted Subsidiary or any Foreign
Subsidiary.

     “Unrestricted Subsidiary” shall mean any Subsidiary (other than any Core Asset
Subsidiary or EquaGen (to the extent EquaGen becomes a Subsidiary)) that is designated by the Board
of Directors (or any committee thereof) of the Borrower as an Unrestricted Subsidiary

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pursuant to a board or committee resolution, but only to the extent that (a) such Subsidiary
has no Indebtedness other than Indebtedness that is non-recourse to the Borrower and its Restricted
Subsidiaries; (b) except as permitted by Section 6.08 hereof, such Subsidiary is not party to any
agreement, contract, arrangement or understanding with the Borrower or any Restricted Subsidiary
unless the terms of any such agreement, contract, arrangement or understanding are no less
favorable to the Borrower or such Restricted Subsidiary than those that might be obtained at the
time from Persons who are not Affiliates of the Borrower; (c) such Subsidiary is a Person with
respect to which neither the Borrower nor any of its Restricted Subsidiaries has any direct or
indirect obligation to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results except as otherwise permitted by this
Agreement; (d) such Subsidiary has not guaranteed or otherwise directly or indirectly provided
credit support for any Indebtedness of the Borrower or any of its Restricted Subsidiaries except as
otherwise permitted by this Agreement; and (e) such designation complies with Section 6.05 and
Section 6.11. Any designation of a Subsidiary as an Unrestricted Subsidiary will be evidenced to
the Administrative Agent by filing with the Administrative Agent a certified copy of the board or
committee resolution giving effect to such designation as required by Section 6.11 and an officers’
certificate certifying that such designation complied with the conditions set forth above. If, at
any time, any Unrestricted Subsidiary fails to meet the above requirements as an Unrestricted
Subsidiary, it will cease to be an Unrestricted Subsidiary for purposes of this Agreement and will
be deemed to be a Restricted Subsidiary as of such date (even if deeming such Unrestricted
Subsidiary a Restricted Subsidiary results in a Default or Event of Default hereunder). The Board
of Directors (or any committee thereof) of the Borrower may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary.

     “Unused Commitment Fee” shall have the meaning specified in Section 2.05(a).

     “Unused Commitment Fee Rate” shall mean a rate per annum equal to 0.625%.

     “Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at
any date, the number of years obtained by dividing (a) the sum of the products obtained by
multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect of the
Indebtedness, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by (b) the then outstanding principal amount of
such Indebtedness.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02. Terms Generally. The definitions in Section 1.01 shall apply equally to
both the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including”, and words of similar import, shall
not be limiting and shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word
“shall”. The words “asset” and “property” shall be construed as having the
same meaning and effect and to refer to any and all rights and interests in tangible and intangible
assets and properties of any kind whatsoever, whether real, personal or mixed, including cash,
securities, Equity Interests, accounts and contract rights. The word “control”, when used
in connection with the Collateral Agent’s rights with

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respect to, or security interest in, any Collateral, shall have the meaning specified in the
UCC with respect to that type of Collateral. The words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision of this Agreement unless the context shall
otherwise require. All references herein to Articles, Sections, Exhibits, Schedules and Annexes
shall be deemed references to Articles and Sections of, and Exhibits, Schedules and Annexes to,
this Agreement unless the context shall otherwise require. Except as otherwise expressly provided
herein, (a) any definition of, or reference to, any Transaction Document or any other agreement,
instrument or document in this Agreement shall mean such Transaction Document or other agreement,
instrument or document as amended, restated, supplemented or otherwise modified from time to time
(subject to any restrictions on such amendments, restatements, supplements or modifications set
forth herein), (b) references to any statute or regulation are to be construed as including all
statutory and regulatory provisions related thereto or consolidating, amending, replacing,
supplementing or interpreting the statute or regulation and (c) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from time to time;
provided, however, that if the Borrower notifies the Administrative Agent that the
Borrower wishes to amend any covenant in Article VI or any related definition to eliminate the
effect of any change in GAAP occurring after the Signing Date on the operation of such covenant (or
if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article
VI or any related definition for such purpose), then the Borrower’s compliance with such covenant
shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

          SECTION 1.03. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings
also may be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

          SECTION 1.04. Pro Forma Calculations. All pro forma calculations permitted or
required to be made by the Borrower or any Subsidiary pursuant to this Agreement shall (a) include
only (i) those adjustments that would be permitted or required by Regulation S-X under the
Securities Act, as amended, or (ii) reductions in costs and related adjustments that have been
actually realized or are projected by a Financial Officer of the Borrower in good faith to result
from reasonably identifiable and factually supportable actions or events, but only if such
reductions in costs and related adjustments are so projected by the Borrower to be realized during
the consecutive four-quarter period commencing after the transaction giving rise to such
calculation and (b) be certified to by a Financial Officer of the Borrower as having been prepared
in good faith based upon assumptions believed by the Borrower to be reasonable at the time made in
light of circumstances at the time made.

          SECTION 1.05. Exchange Rates. For purposes of determining compliance under Article VI
with respect to any amount in a foreign currency, the U.S. dollar-equivalent amount thereof will be
calculated based on the relevant currency exchange rate in effect at the time of such incurrence.
The maximum amount of Indebtedness, Liens, Investments and other basket amounts that the Borrower
and its Subsidiaries may incur under Article VI shall not be deemed to be exceeded, with respect to
any outstanding Indebtedness, Liens, Investments and other basket amounts, solely as a result of
fluctuations in the exchange rate of currencies, if as of the initial date of calculation the
Borrower determined that each such maximum amount had not been exceeded. When calculating capacity
for the incurrence of additional Indebtedness, Liens,

37

 

Investments and other basket amounts by the Borrower and its Subsidiaries under Article VI the
exchange rate of currencies shall be measured as of the date of calculation.

ARTICLE II

The Credits

          SECTION 2.01. Commitments. Subject to the terms and conditions hereof and relying
upon the representations and warranties set forth herein, each Lender agrees, severally and not
jointly, to fund Loans to the Borrower, at any time and from time to time on and after the Funds
Availability Date and until the Revolving Credit Termination Date, in an aggregate principal amount
at any time outstanding that will not result in such Lender’s Revolving Credit Outstandings
exceeding such Lender’s Commitments. Subject to the terms, conditions and limitations set forth
herein, the Borrower may borrow, pay or prepay and reborrow Loans.

          SECTION 2.02. Borrowing Procedures. (a) Each Borrowing shall be made on notice given
by the Borrower to the Administrative Agent not later than 12:00 p.m. (New York time) (i) one
Business Day, in the case of an ABR Borrowing and (ii) three Business Days, in the case of a
Eurodollar Borrowing, prior to the date of the proposed Borrowing. Each such notice shall be in
substantially the form of Exhibit D (a “Borrowing Request”), specifying, (A) the
date of such proposed Borrowing, (B) the aggregate amount of such proposed Borrowing, (C) whether
any portion of the proposed Borrowing will be an ABR Borrowing or Eurodollar Borrowing and (D) for
each Eurodollar Borrowing, the initial Interest Period or Interest Periods thereof. Loans shall be
made as ABR Loans unless, subject to Section 2.08, the Borrowing Request specifies that all or a
portion thereof shall be a Eurodollar Borrowing. Each Borrowing shall be in an aggregate amount of
(i) not less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof, or (ii)
equal to the remaining available balance.

          (b) The Administrative Agent shall give to each Lender prompt notice of the Administrative
Agent’s receipt of a Borrowing Request and, if Eurodollar Loans are properly requested in such
Borrowing Request, the applicable interest rate determined pursuant to Section 2.06. Each Lender
shall, prior to 12:00 p.m. (New York time) on the date of the proposed Borrowing, make available to
the Administrative Agent at its address referred to in Section 9.01, in immediately available
funds, such Lender’s Ratable Portion of such proposed Borrowing. Upon fulfillment (or due waiver
in accordance with Section 9.08) (i) on the Funds Availability Date, of the applicable conditions
set forth in Section 4.03 and (ii) at any time (including the Funds Availability Date), of the
applicable conditions set forth in Section 4.01, and after the Administrative Agent’s receipt of
such funds, the Administrative Agent shall make such funds available to the Borrower.

          (c) Unless, prior to the date of any proposed Borrowing, the Administrative Agent shall have
received notice from a Lender that such Lender will not make available to the Administrative Agent
such Lender’s Ratable Portion of such Borrowing (or any portion thereof), the Administrative Agent
may assume that such Lender has made such Ratable Portion available to the Administrative Agent on
the date of such Borrowing in accordance with this Section 2.02 and the Administrative Agent may
(but shall not be obligated to), in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent that such Lender shall not have so made
such Ratable Portion available to the Administrative Agent, such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such corresponding amount together
with interest

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thereon, for each day from the date such amount is made available to the Borrower until the
date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the
interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of
such Lender, the Federal Funds Rate for the first Business Day and thereafter at the interest rate
applicable at the time to the Loans comprising such Borrowing. If such Lender shall repay to the
Administrative Agent such corresponding amount, such corresponding amount so repaid shall
constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement. If the
Borrower shall repay to the Administrative Agent such corresponding amount, such payment shall not
relieve such Lender of any obligation it may have hereunder to the Borrower.

          (d) The failure of any Defaulting Lender to make, on the date specified, any Loan or any
payment required by it, including any payment in respect of its participation in Letter of Credit
Obligations, shall not relieve any other Lender of its obligations to make such Loan or payment on
such date but no such other Lender shall be responsible for the failure of any Defaulting Lender to
make a Loan or payment required under this Agreement.

          SECTION 2.03. Letters of Credit. (a) On the terms and subject to the conditions
contained in this Agreement, each Issuer agrees to Issue at the request of the Borrower and for the
account of the Borrower one or more Letters of Credit from time to time on any Business Day during
the period commencing on the Funds Availability Date and ending on the earlier of the Revolving
Credit Termination Date and 30 days prior to the Revolving Credit Maturity Date; provided,
however, that no Issuer shall be under any obligation to Issue (and, upon the occurrence of
any of the events described in clauses (ii), (iii), (iv), (v), and (vi)(A) below, shall not Issue)
any Letter of Credit upon the occurrence of any of the following:

     (i) any order, judgment or decree of any Governmental Authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuer from Issuing such Letter of Credit
or any Applicable Law applicable to such Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over such Issuer
shall prohibit, or request that such Issuer refrain from, the Issuance of letters of credit
generally or such Letter of Credit in particular or shall impose upon such Issuer with
respect to such Letter of Credit any restriction or reserve or capital requirement (for
which such Issuer is not otherwise compensated) not in effect on the Signing Date or result
in any unreimbursed loss, cost or expense that was not applicable, in effect or known to
such Issuer as of the Signing Date and that such Issuer in good faith deems material to it;

     (ii) such Issuer shall have received any written notice of the type described in
clause (d) below (until such time as such Issuer shall have received written notice of
rescission of such previous notice from the party or parties originally delivering such
notice);

     (iii) after giving effect to the Issuance of such Letter of Credit, the aggregate
Revolving Credit Outstandings would exceed the aggregate Commitments in effect at such
time;

     (iv) after giving effect to the Issuance of such Letter of Credit, the Letter of
Credit Obligations at such time for such Issuer would exceed its commitment under its
Letter of Credit Issuer Agreements;

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     (v) such Letter of Credit is requested to be denominated in any currency other than
dollars; or

     (vi) (A) any fees due in connection with a requested Issuance have not been paid, (B)
the terms and conditions of such Letter of Credit are not commercially customary or (C) the
Issuer for such Letter of Credit shall not have received its respective Letter of Credit
Issuer Agreements.

     None of the Lenders (other than the Issuers in their capacity as such) shall have any
obligation to Issue any Letter of Credit.

          (b) In no event shall the expiration date of any Letter of Credit be (i) more than one year
after the date of issuance thereof or (ii) less than five days prior to the Revolving Credit
Maturity Date; provided, however, that if cash collateral in an amount equal to the
outstanding amount of such Letter of Credit shall have been duly deposited with respect to such
Letter of Credit in an L/C Cash Collateral Account for the benefit of the applicable Issuer with
the Administrative Agent prior to the date set forth in clause (ii), such expiration date may be
extended to a date no later than a date that is 180 days after the Revolving Credit Maturity Date;
provided further, however, that any Letter of Credit with a term less than
or equal to one year may provide for the automatic renewal thereof for additional periods less than
or equal to one year, as long as, (x) on or before the expiration of each such term and each such
period (subject to a customary notice period to be agreed), each of the Borrower and the Issuer of
such Letter of Credit may at its option prevent such renewal and (y) neither the Issuer of such
Letter of Credit nor the Borrower shall permit any such renewal to extend the expiration date of
any Letter of Credit beyond the date set forth in clause (ii) above subject to the proviso to such
clause (ii).

          (c) Other than with respect to the renewal of any Letter of Credit subject to automatic
renewal pursuant to the terms thereof, in connection with the Issuance of each Letter of Credit,
the Borrower shall give the relevant Issuer and the Administrative Agent at least two Business
Days’ prior written notice, in substantially the form of Exhibit E (or in such other
written or electronic form as is acceptable to such Issuer), of the requested Issuance of such
Letter of Credit (a “Letter of Credit Request”). Such notice shall be irrevocable and
shall specify the Issuer of such Letter of Credit and face amount of the Letter of Credit requested
(which shall not be for a face amount less than a minimum face amount determined by such Issuer
(which minimum amount shall not be greater than $5,000,000)), the date of Issuance of such
requested Letter of Credit, the date on which such Letter of Credit is to expire (which date shall
be a Business Day) and, in the case of an issuance, the Person for whose benefit the requested
Letter of Credit is to be issued. Such notice, to be effective, must be received by the relevant
Issuer and the Administrative Agent no later than 12:00 p.m. (New York time) on the second Business
Day prior to the requested Issuance of such Letter of Credit.

          (d) Subject to the satisfaction of the conditions set forth in this Section 2.03, the relevant
Issuer shall, on the requested date, Issue a Letter of Credit on behalf of the Borrower in
accordance with such Issuer’s usual and customary business practices. No Issuer shall Issue any
Letter of Credit in the period commencing on the first Business Day after it receives written
notice from any Lender that one or more of the conditions precedent contained in Section 4.01 or
clause (a) above (other than those conditions set forth in clauses (a)(i), (a)(vi)(B) and (C) above
and, to the extent such clause relates to fees owing to the Issuer of such Letter of Credit and its
Affiliates, clause (a)(vi)(A) above) are not on such date satisfied or duly waived and ending when
such conditions are satisfied or duly waived. No Issuer shall otherwise be required to determine

40

 

that, or take notice whether, the conditions precedent set forth in Section 4.01 have been
satisfied in connection with the Issuance of any Letter of Credit.

          (e) In the event of any conflict between the terms of any Letter of Credit Issuer Agreements
and this Agreement, the terms of this Agreement shall govern.

          (f) Each Issuer shall comply with the following:

     (i) give the Administrative Agent written notice (or telephonic notice confirmed
promptly thereafter in writing), which writing may be a telecopy or electronic mail, of the
Issuance of any Letter of Credit Issued by it, of all drawings under any Letter of Credit
Issued by it and of the payment (or the failure to pay when due) by the Borrower of any
Reimbursement Obligation when due (which notice the Administrative Agent shall promptly
transmit by telecopy, electronic mail or similar transmission to each Lender);

     (ii) upon the request of any Lender, furnish to such Lender copies of any Letter of
Credit Issuer Agreements to which such Issuer is a party and such other documentation as
may reasonably be requested by such Lender; and

     (iii) no later than 10 Business Days following the last day of each calendar month,
provide to the Administrative Agent (and the Administrative Agent shall provide a copy to
each Lender requesting the same) and the Borrower separate schedules for Letters of Credit
issued by it, in form and substance reasonably satisfactory to the Administrative Agent,
setting forth the aggregate Letter of Credit Obligations, in each case outstanding at the
end of each month and any information reasonably requested by the Borrower or the
Administrative Agent relating thereto.

          (g) Immediately upon the issuance by an Issuer of a Letter of Credit in accordance with the
terms and conditions of this Agreement, such Issuer shall be deemed to have sold and transferred to
each Lender, and each Lender shall be deemed irrevocably and unconditionally to have purchased and
received from such Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender’s Ratable Portion of the Commitments, in such Letter of Credit and the
obligations of the Borrower with respect thereto (including all Letter of Credit Obligations with
respect thereto) and any security therefor and guaranty pertaining thereto. Notwithstanding
anything to the contrary contained in this Agreement, any Issuer may require as a condition
precedent to Issuing a Letter of Credit, and any Issuer may at any time require with respect to any
outstanding Letter of Credit, that the Borrower (i) deposit cash collateral to an L/C Cash
Collateral Account sufficient to cover any Defaulting Lender’s Ratable Portion of the face amount
of such Letter of Credit or (ii) put such other arrangements reasonably satisfactory to such Issuer
in place with respect to such Defaulting Lender to eliminate its risk with respect to the
participation in Letters of Credit by such Defaulting Lender. Upon the replacement of such
Defaulting Lender, or such Lender ceasing to be a Defaulting Lender, any cash or other collateral
pledged by the Borrower shall be promptly returned to the Borrower and such other arrangements
entered into shall terminate (and, at the request of the Borrower, the relevant Issuer will use
reasonable efforts to evidence such termination).

          (h) The Borrower agrees to pay to the Issuer of any Letter of Credit the amount of all
Reimbursement Obligations owing to such Issuer under any Letter of Credit issued

41

 

for its account no later than the date that is the next succeeding Business Day after the
Borrower receives written notice (which notice shall be delivered within 1 Business Day of the draw
giving rise to such Reimbursement Obligation, provided, however, that the failure
to give such notice shall in no way impair, diminish, or otherwise affect the Borrower’s obligation
to pay such Reimbursement Obligations) from such Issuer that payment has been made under such
Letter of Credit (the “Reimbursement Date”), irrespective of any claim, set-off, defense or
other right that the Borrower may have at any time against such Issuer or any other Person. In the
event that any Issuer makes any payment under any Letter of Credit and the Borrower shall not have
repaid such amount to such Issuer pursuant to this clause (h) or any such payment by the Borrower
is rescinded or set aside for any reason, such Reimbursement Obligation shall be payable on demand
with interest thereon computed (i) from the date on which such Reimbursement Obligation arose to
the Reimbursement Date, at the rate of interest applicable during such period to Loans that are ABR
Loans and (ii) from the Reimbursement Date until the date of repayment in full, at the rate of
interest applicable during such period to past due Loans that are ABR Loans, and such Issuer shall
promptly notify the Administrative Agent, which shall promptly notify each Lender of such failure,
and each Lender shall promptly and unconditionally pay to the Administrative Agent for the account
of such Issuer the amount of such Lender’s Ratable Portion of such payment in immediately available
funds. If the Administrative Agent so notifies such Lender prior to 12:00 p.m. (New York time) on
any Business Day, such Lender shall make available to the Administrative Agent for the account of
such Issuer its Ratable Portion of the amount of such payment on such Business Day in immediately
available funds. Upon such payment by a Lender, such Lender shall, except during the continuance
of a Default or Event of Default under Sections 7.02(g) or 7.02(h) and notwithstanding whether or
not the conditions precedent set forth in Section 4.01 shall have been satisfied (which conditions
precedent the Lenders hereby irrevocably waive), be deemed to have made a Loan to the Borrower in
the principal amount of such payment. In furtherance of the foregoing, each Issuer is hereby
authorized by the Borrower (which authorization is irrevocable and coupled with an interest) to
give, through the Administrative Agent, Borrowing Requests pursuant to this Section 2.03(h) in such
amounts and at such times as may be required to reimburse an outstanding Reimbursement Obligation.
Whenever any Issuer receives from the Borrower a payment of a Reimbursement Obligation as to which
the Administrative Agent has received for the account of such Issuer any payment from a Lender
pursuant to this clause (h), such Issuer shall pay over to the Administrative Agent any amount
received in excess of such Reimbursement Obligation and, upon receipt of such amount, the
Administrative Agent shall promptly pay over to each Lender, in immediately available funds, an
amount equal to such Lender’s Ratable Portion of the amount of such payment adjusted, if necessary,
to reflect the respective amounts the Lenders have paid in respect of such Reimbursement
Obligation. Upon receipt by the Administrative Agent of all amounts owing from the Lenders
(including any Defaulting Lenders) pursuant to this clause (h), any cash or other collateral
pledged by the Borrower in accordance with clause (g) above shall be promptly returned to the
Borrower and any such other arrangement entered into pursuant to clause (g)(ii) shall terminate
(and, at the request of the Borrower, the relevant Issuer will use reasonable efforts to evidence
such termination).

          (i) If and to the extent such Lender shall not have so made its Ratable Portion of the amount
of any payment required by clause (h) above available to the Administrative Agent for the account
of such Issuer, such Lender agrees to pay to the Administrative Agent for the account of such
Issuer forthwith on demand any such unpaid amount together with interest thereon, for the first
Business Day after payment was first due at the Federal Funds Rate and, thereafter, until such
amount is repaid to the Administrative Agent

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for the account of such Issuer, at a rate per annum equal to the rate applicable to ABR Loans
hereunder.

          (j) The Borrower’s obligation to pay each Reimbursement Obligation and the obligations of the
Lenders to make payments to the Administrative Agent for the account of the Issuers with respect to
Letters of Credit shall be absolute, unconditional and irrevocable and shall be performed strictly
in accordance with the terms of this Agreement, under any and all circumstances whatsoever,
including the occurrence of any Default or Event of Default, and irrespective of any of the
following:

     (i) any lack of validity or enforceability of any Letter of Credit or any Loan
Document, or any term or provision therein;

     (ii) any amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document;

     (iii) the existence of any claim, set-off, defense or other right that the Borrower,
any other party guaranteeing, or otherwise obligated in addition to, the Borrower, any
Restricted Subsidiary or other Affiliate thereof or any other Person may at any time have
against the beneficiary under any Letter of Credit, any Issuer, the Administrative Agent or
any Lender or any other Person, whether in connection with this Agreement, any other Loan
Document or any other related or unrelated agreement or transaction;

     (iv) any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

     (v) payment by the relevant Issuer under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such Letter of Credit; and

     (vi) any other act or omission to act or delay of any kind of or by any Issuer, the
Lenders, the Administrative Agent or any other Person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.03, constitute a legal or equitable discharge of the
Borrower’s obligations hereunder;

provided, however, that the Borrower shall not be obligated to reimburse any Issuer
for any wrongful payment made by such Issuer under the Letter of Credit issued by it as a result of
acts or omissions constituting willful misconduct or gross negligence on the part of such Issuer.

     Any action taken or omitted to be taken by the relevant Issuer under or in connection with any
Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct,
shall not result in any liability of such Issuer to the Borrower or any Lender. In determining
whether drafts and other documents presented under a Letter of Credit comply with the terms
thereof, any Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary
and, in making any payment under any Letter of Credit, such Issuer may rely exclusively on the
documents presented to it under such Letter of Credit as to any and all matters set forth therein,

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including reliance on the amount of any draft presented under such Letter of Credit, whether
or not the amount due to the beneficiary thereunder equals the amount of such draft and whether or
not any document presented pursuant to such Letter of Credit proves to be insufficient in any
respect, if such document on its face appears to be in order, and whether or not any other
statement or any other document presented pursuant to such Letter of Credit proves to be forged or
invalid or any statement therein proves to be inaccurate or untrue in any respect whatsoever, and
any noncompliance in any immaterial respect of the documents presented under such Letter of Credit
with the terms thereof shall, in each case, be deemed not to constitute willful misconduct or gross
negligence of such Issuer.

          (k) At any time (i) upon the Revolving Credit Termination Date, (ii) after the Revolving
Credit Termination Date when the aggregate funds on deposit in L/C Cash Collateral Accounts shall
be less than 100% of the Letter of Credit Obligations, (iii) as may be required by Section 2.12(a)
or (iv) as may be required by Section 2.03(g), the Borrower shall pay to the Administrative Agent
in immediately available funds at the Administrative Agent’s office referred to in Section 9.01,
for deposit in an L/C Cash Collateral Account, (x) in the case of clauses (i) and (ii) above, the
amount required so that, after such payment, the aggregate funds on deposit in the L/C Cash
Collateral Accounts equals or exceeds 100% of the sum of all outstanding Letter of Credit
Obligations and (y) in the case of clauses (iii) and (iv) above, the amount required by Section
2.12(a) and Section 2.03(g), respectively. The Administrative Agent may, from time to time after
funds are deposited in any L/C Cash Collateral Account, apply funds then held in such L/C Cash
Collateral Account to the payment of any amounts, in accordance with Sections 2.12(a) and 2.12(d),
as shall have become or shall become due and payable by the Borrower to the Issuers or Lenders in
respect of the Letter of Credit Obligations. The Administrative Agent shall promptly give written
notice of any such application; provided, however, that the failure to give such
written notice shall not invalidate any such application. Upon termination or cancellation of any
Letter of Credit, the Administrative Agent shall promptly return to Borrower such cash collateral
held by it in an amount equal to the Letter of Credit Obligations attributable to such Letter of
Credit together with any interest accrued thereon.

          (l) Any Issuer may resign as an Issuer hereunder upon 30 days’ written notice to the Borrower
and the Administrative Agent; provided that during such 30-day notice period the resigning
Issuer shall not be required to honor new requests for Issuances of Letters of Credit. After the
resignation or replacement of an Issuer hereunder, the resigning or replaced Issuer shall remain a
party hereto and shall continue to have all the rights and obligations of an Issuer under this
Agreement and the other Loan Documents with respect to Letters of Credit issued by it prior to such
resignation or replacement, but shall not be required to issue additional Letters of Credit.

          SECTION 2.04. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of each Lender the
entire unpaid principal amount of each Loan of such Lender made to the Borrower on the Revolving
Credit Maturity Date.

          (b) 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 to the Borrower from time to time, including the amounts of principal and interest payable
and paid to such Lender from time to time under this Agreement, and shall provide copies of such
accounts to the Borrower upon its reasonable request (at the Borrower’s sole cost and expense).

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          (c) The Administrative Agent shall maintain accounts in which it will record (in accordance
with Section 9.04 (d)) (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or
to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any
sum received by the Administrative Agent hereunder from the Borrower or any Subsidiary Guarantor
and each Lender’s share thereof, and shall provide copies of such accounts to the Borrower upon its
reasonable request (at the Borrower’s sole cost and expense).

          (d) The entries made in the accounts maintained pursuant to paragraphs (b) and (c) of this
Section shall be conclusive evidence of the existence and amounts of the obligations therein
recorded absent clearly demonstrable error; provided, however, that the failure of
any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in
any manner affect the obligations of the Borrower to repay the Loans in accordance with the terms
of this Agreement.

          (e) Any Lender may request that Loans made by it hereunder be evidenced by a Note. In such
event, the Borrower shall execute and deliver to such Lender a Note payable to such Lender and its
registered assigns substantially in the form of Exhibit H or in any other form reasonably
acceptable to the Administrative Agent.

          SECTION 2.05. Fees. (a) Unused Commitment Fee. The Borrower agrees to pay,
in immediately available dollars, to each Lender a commitment fee on the average daily amount by
which the Commitments of such Lender exceeds such Lender’s Ratable Portion of the sum of (i) the
aggregate outstanding principal amount of Loans and (ii) the outstanding amount of the aggregate
Letter of Credit Obligations (the “Unused Commitment Fee”) from the Signing Date through
the Revolving Credit Termination Date at the Unused Commitment Fee Rate, payable in arrears (x) on
the last Business Day of each March, June, September and December, commencing on the first such
Business Day following the Signing Date and (y) on the Revolving Credit Termination Date.
Notwithstanding anything to the contrary provided in this clause (a), no Defaulting Lender shall be
entitled to receive any Unused Commitment Fees for so long as it remains a Defaulting Lender and
the amount of any Unused Commitment Fee that otherwise would have been payable to such Lender shall
be retained by the Borrower. For the avoidance of doubt, from the date that any such Defaulting
Lender ceases to be a Defaulting Lender, the accrual of Unused Commitment Fees shall resume but the
Borrower shall not be required to pay a “cure” amount or any arrearage with respect to the period
during which such Lender was a Defaulting Lender.

          (b) Letter of Credit Fees. The Borrower agrees to pay the following amounts with
respect to Letters of Credit issued by any Issuer:

     (i) to the Administrative Agent for the account of each Issuer of a Letter of Credit,
with respect to each Letter of Credit issued by such Issuer, a fronting fee specified in
the Letter of Credit Fee Letter, payable in arrears (A) on the last Business Day of each
March, June, September and December, commencing on the first such Business Day following
the issuance of such Letter of Credit and (B) on the Revolving Credit Termination Date;

     (ii) to the Administrative Agent for the ratable benefit of the Lenders, with respect
to each Letter of Credit, a fee accruing in dollars at a rate per annum equal to the
Applicable Margin for Loans that are Eurodollar Loans on the dollar equivalent of the

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maximum undrawn face amount of such Letter of Credit, payable in arrears (A) on the
last Business Day of each March, June, September and December, commencing on the first such
Business Day following the issuance of such Letter of Credit and (B) on the Revolving
Credit Termination Date; provided, that (x) no Defaulting Lender shall be entitled
to receive a fee pursuant to this clause (b)(ii) for so long as it remains a Defaulting
Lender and the amount of any fee that otherwise would have been payable to such Defaulting
Lender hereunder shall be paid (1) initially, to the Issuer of the applicable Letter of
Credit and (2) effective upon the Borrower’s posting of cash collateral or making of
another arrangement pursuant to Section 2.03(g), retained by the Borrower and (y) for the
avoidance of doubt, from the date that any such Defaulting Lender ceases to be a Defaulting
Lender, the accrual of fees under this clause (b)(ii) shall resume but the Borrower shall
not be required to pay a “cure” amount or any arrearage with respect to the period during
which such Lender was a Defaulting Lender; and

     (iii) to the Issuer of any Letter of Credit, with respect to the issuance, amendment
or transfer of each Letter of Credit and each drawing made thereunder, documentary and
processing charges in accordance with such Issuer’s standard schedule for such charges in
effect at the time of issuance, amendment, transfer or drawing, as the case may be.

          (c) Administrative Agent Fee. The Borrower has agreed to pay to the Administrative
Agent an annual administrative agent’s fee as set forth in the Fee Letter, for the Administrative
Agent’s own account, payable in advance on the Signing Date and thereafter annually in advance on
each successive anniversary thereof for so long as any Secured Obligation shall be outstanding or
any Lender shall have any Commitment hereunder.

          SECTION 2.06. Interest on Loans. (a) Subject to the provisions of Section 2.07, the
outstanding Loans comprising each ABR Borrowing shall bear interest (computed on the basis of the
actual number of days elapsed (i) for ABR Loans based on the Base Rate (other than with respect to
the Federal Funds Rate), over a year of 365/366 days and (ii) for ABR Loans based on the Federal
Funds Rate, over a year of 360 days) at a rate per annum equal to the Base Rate plus the
Applicable Margin.

          (b) Subject to the provisions of Section 2.07, the Loans comprising each Eurodollar Borrowing
shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Margin.

          (c) Interest on each Loan shall be payable on the Interest Payment Dates applicable to such
Loan except as otherwise provided in this Agreement. Subject to Section 2.07, the applicable Base
Rate or Adjusted LIBO Rate for each Interest Period, as the case may be, shall be determined by the
Administrative Agent, and such determination shall, absent (clearly demonstrable) error, be final
and conclusive and binding on all parties hereto.

          SECTION 2.07. Default Interest. If the Borrower shall default in the payment of the
principal of or interest on any Loan or any other amount becoming due and payable hereunder or
under any other Loan Document, by acceleration or otherwise, and such default continues past any
applicable grace period, the Borrower shall on demand from time to time pay interest, to the extent
permitted by law, on such defaulted amount to, but excluding the date of actual payment (after as
well as before judgment), (a) in the case of principal, at the rate otherwise applicable to

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such Loan pursuant to Section 2.06 plus 2.00% per annum and (b) in all other cases, at
a rate per annum (computed on the basis of the actual number of days elapsed over a year of 365/366
days) equal to the rate that would be applicable to an ABR Loan plus 2.00%.

          SECTION 2.08. Interest Rate Unascertainable, Inadequate or Unfair. In the event, and
on each occasion, that prior to the commencement of any Interest Period for a Eurodollar Borrowing
or the determination of the LIBO Rate on any day (a) the Administrative Agent shall have determined
that by reasons of circumstances affecting the relevant market adequate and reasonable means do not
exist for determining the Adjusted LIBO Rate for such Interest Period or the LIBO Rate for such day
or (b) the Administrative Agent is advised by the Required Lenders reasonably and in good faith (as
conclusively certified by such Lenders) that the Adjusted LIBO Rate for such Interest Period or the
LIBO Rate for such day will not adequately and fairly reflect the cost to such Lenders of making or
maintaining their Loans included in such Borrowing for such Interest Period, then the
Administrative Agent shall, as soon as practicable thereafter, give written or fax notice of such
determination to the Borrower and the Lenders, provided that if the circumstances giving rise to
such notice shall cease or otherwise become inapplicable to such Required Lenders, then such
Required Lenders shall promptly give notice of such change in circumstances to the Administrative
Agent and the Borrower, and the Administrative Agent shall, as soon as practicable thereafter, give
notice to the Borrowers and Lenders of such changed circumstances. In the event of any such
notice, until the Administrative Agent shall have advised the Borrower and the Lenders that the
circumstances giving rise to such written or fax notice no longer exist, (i) any request by the
Borrower for a Eurodollar Borrowing pursuant to Section 2.02 or 2.10 shall be deemed to be a
request for an ABR Borrowing and (ii) any Interest Period election that requests the conversion of
any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective.
Each determination by the Administrative Agent under this Section 2.08 shall, absent clearly
demonstrable error, be final and conclusive and binding on all parties hereto.

          SECTION 2.09. Voluntary Termination and Reduction of Commitments.
 (a) Unless previously terminated in accordance with the terms hereof, the Commitments shall
automatically terminate on the Revolving Credit Maturity Date.

          (b) Upon at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent, the Borrower may at any time in whole permanently terminate, or from time to
time in part permanently reduce, in each case without premium or penalty, the Commitments;
provided, however, that (i) each partial reduction of the Commitments shall be in
an integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and (ii) the Total
Commitment shall not be reduced to an amount that is less than the Aggregate Revolving Credit
Outstandings then in effect; provided further that a notice of termination may
state that such termination is conditioned upon the effectiveness of other credit facilities or any
other event, in which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified termination date) if such condition is not
satisfied.

          (c) Each reduction in the Commitments hereunder shall be made ratably among the Lenders in
accordance with their Ratable Portion. The Borrower shall pay to the Administrative Agent for the
account of the Lenders, on the date of each termination or reduction, any unpaid Unused Commitment
Fees on the amount of the Commitments so terminated or reduced accrued to but excluding the date of
such termination or reduction.

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          SECTION 2.10. Conversion and Continuation of Borrowings. The Borrower shall have the
right at any time upon prior irrevocable notice to the Administrative Agent (a) no later than 12:00
p.m., New York City time, one Business Day prior to conversion, to convert any Eurodollar Borrowing
of the Borrower into an ABR Borrowing, (b) no later than 12:00 p.m., New York City time, three
Business Days prior to conversion or continuation, to convert any ABR Borrowing of the Borrower
into a Eurodollar Borrowing or to continue any Eurodollar Borrowing of the Borrower as a Eurodollar
Borrowing for an additional Interest Period and (c) no later than 12:00 p.m., New York City time,
three Business Days prior to conversion, to convert the Interest Period with respect to any
Eurodollar Borrowing of the Borrower to another permissible Interest Period. Each such notice
shall be in substantially the form of Exhibit F (a “Notice of Continuation or
Conversion”), and shall be subject in each case to the following:

     (i) each conversion or continuation shall be made pro rata among the Lenders in
accordance with the respective principal amounts of the Loans comprising the converted or
continued Borrowing;

     (ii) if less than all the outstanding principal amount of any Borrowing shall be
converted or continued, then each resulting Borrowing shall satisfy the limitations
specified in Section 2.02 regarding the principal amount and maximum number of Borrowings
of the relevant Type;

     (iii) each conversion shall be effected by each Lender and the Administrative Agent by
recording for the account of such Lender the new Loan of such Lender resulting from such
conversion and reducing the Loan (or portion thereof) of such Lender being converted by an
equivalent principal amount; accrued and unpaid interest on any Eurodollar Loan (or portion
thereof) being converted shall be paid by the Borrower at the time of conversion;

     (iv) if any Eurodollar Borrowing is converted at a time other than the end of the
Interest Period applicable thereto, the Borrower shall pay, upon demand, any amounts due to
the Lenders pursuant to Section 2.16;

     (v) any portion of a Borrowing maturing or required to be repaid in less than one
month may not be converted into or continued as a Eurodollar Borrowing;

     (vi) any portion of a Eurodollar Borrowing that cannot be converted into or continued
as a Eurodollar Borrowing by reason of the immediately preceding or immediately succeeding
clause shall be automatically converted at the end of the Interest Period in effect for
such Borrowing into an ABR Borrowing; and

     (vii) after the occurrence and during the continuance of an Event of Default, no
outstanding Loan may be converted into, or continued past the then-current Interest Period
as, a Eurodollar Loan.

     Each notice pursuant to this Section 2.10 shall be irrevocable and shall refer to this
Agreement and specify (i) the identity and amount of the Borrowing that the Borrower requests be
converted or continued, (ii) whether such Borrowing is to be converted to or continued as a
Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a conversion, the date of
such conversion (which shall be a Business Day) and (iv) if such Borrowing is to be converted to or
continued as a Eurodollar Borrowing, the Interest Period with respect thereto. If no Interest

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Period is specified in any such notice with respect to any conversion to or continuation as a
Eurodollar Borrowing, the Borrower shall be deemed to have selected an Interest Period of one
month’s duration. The Administrative Agent shall advise the Lenders of any notice given pursuant
to this Section 2.10 and of each Lender’s portion of any converted or continued Borrowing. If the
Borrower shall not have given notice in accordance with this Section 2.10 to continue any Borrowing
into a subsequent Interest Period (and shall not otherwise have given notice in accordance with
this Section 2.10 to convert such Borrowing), such Borrowing shall, at the end of the Interest
Period applicable thereto (unless repaid pursuant to the terms hereof), automatically be converted
or continued into an ABR Borrowing.

          SECTION 2.11. Optional Prepayments. (a) The Borrower shall have the right at any time
and from time to time to prepay any Borrowing, in whole or in part, without premium or penalty,
subject to the provisions of paragraph (b) below, upon at least three Business Days’ prior written
or fax notice (or telephone notice promptly confirmed by written or fax notice) in the case of
Eurodollar Loans, or written or fax notice (or telephone notice promptly confirmed by written or
fax notice) on the date of prepayment in the case of ABR Loans, to the Administrative Agent prior
to 12:00 p.m., New York City time; provided, however, that each partial prepayment
shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000.

          (b) Each notice of prepayment shall specify the prepayment date and the principal amount of
each Loan (or portion thereof) to be prepaid (which prepayment shall be made at the direction of
the Borrower, shall be irrevocable and shall commit the Borrower to prepay such Loan by the amount
stated therein on the date stated therein. All prepayments and failures to prepay under this
Section 2.11 shall be subject to Section 2.16. All prepayments under this Section 2.11 shall be
accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding
the date of payment. Notwithstanding the foregoing, to the extent permitted by Applicable Law,
until such time as the Default Excess with respect to such Defaulting Lender shall have been
reduced to zero, any optional prepayment of the Loans made under this Section 2.11(b) and applied
pursuant to this clause (b) shall be applied first to the Loans of other Lenders as if such
Defaulting Lender had no Loans outstanding and the Revolving Credit Outstandings of such Defaulting
Lender were zero.

          SECTION 2.12. Mandatory Prepayments and Commitment Reduction. (a) In the event of any
termination in full of all the Commitments, the Borrower shall, on the date of such termination,
repay or prepay all of its outstanding Revolving Credit Borrowings and replace all its outstanding
Letters of Credit or provide cash collateral for the Letter of Credit Obligations in the manner set
forth in Section 2.03(k).

          (b) If at any time, the aggregate principal amount of Revolving Credit Outstandings exceeds
the aggregate Commitments at such time, the Borrower shall forthwith repay or prepay Revolving
Credit Borrowings and/or cash collateralize Letters of Credit in an amount sufficient to eliminate
such excess.

	 	(c)	 	(i) As promptly as practicable following the occurrence of a
Recovery Event, the Borrower shall deliver a Recovery Event Appraisal to the
Agents. If the Post-Recovery Event Appraised Value set forth in such Recovery
Event Appraisal is equal to or greater than the Initial Appraised Value, no
further action by the Borrower shall be necessary under this clause (c). If
the Post-Recovery Event Appraised Value is less than the Initial Appraised
Value, then:

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	 	(1)	 	if the Borrower delivers to the Agents a
Reinvestment Notice no later than 5 Business Days following the
Borrower’s receipt of the Recovery Event Appraisal, then (A) the
Borrower shall deliver the applicable Allocated Net Cash Proceeds to
the Collateral Agent, provided that if the Borrower has not yet
received Net Cash Proceeds from such Recovery Event, it shall deliver
such Allocated Net Cash Proceeds to the Collateral Agent within 5
Business Days following the receipt thereof, (B) the Collateral Agent
shall deposit such proceeds in the Reinvestment Cash Collateral
Account, and (C) such proceeds shall be held in the Reinvestment Cash
Collateral Account until they are released to or at the direction of
the Borrower in accordance with clause (ii)(1) below or applied
toward prepayment or cash collateralization of the Secured
Obligations and/or toward reduction of the related commitments in
accordance with clause (ii)(2), clause (ii)(3) or clause (iii) below;

	 	(2)	 	if the Borrower fails to deliver a
Reinvestment Notice in accordance with clause (i)(1), then (A) the
Borrower shall deliver the applicable Allocated Net Cash Proceeds to
the Collateral Agent within 5 Business Days; provided that if
the Borrower has not yet received Net Cash Proceeds from such
Recovery Event, it shall deliver such Net Cash Proceeds to the
Collateral Agent within 5 Business Days following receipt thereof,
and (B) the Collateral Agent shall apply such proceeds toward
repayment or cash collateralization of the Secured Obligations and/or
toward reduction of any commitments relating thereto pro rata
pursuant to and in accordance with Section 2.7 of the Intercreditor
Agreement.

(ii) If the Borrower has (A) delivered a Reinvestment Notice to the
Agents and the applicable Allocated Net Cash Proceeds to the Collateral
Agent in accordance with clause (i)(1), then

	 	(1)	 	if the Borrower delivers a Commencement
Notice to the Agents within 365 days following delivery of such
Reinvestment Notice, then the Collateral Agent shall, from time to
time at the request of the Borrower, disburse to or at the direction
of the Borrower Allocated Net Cash Proceeds in such amounts as the
Borrower shall request, provided that the Borrower has provided to
the Collateral Agent a certification by a Responsible Officer of the
Borrower (A) attaching invoices or other documentation to
substantiate the use of such proceeds for Permitted Reinvestments,
(B) that such amounts are reasonably necessary or advisable to make
such Permitted Reinvestments and (C) that no Event of Default has
occurred and is continuing. If the Borrower provides evidence
reasonably satisfactory to the Agents that the applicable Permitted
Reinvestments have been completed, then the Collateral Agent shall
release to or at the

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	 	 	 	direction of the Borrower any remaining Allocated Net Cash
Proceeds in respect of such Recovery Event;

	 	(2)	 	if the Borrower does not deliver a
Commencement Notice to the Agents within 365 days following the
delivery of such Reinvestment Notice, then the Collateral Agent shall
apply such Allocated Net Cash Proceeds toward repayment or cash
collateralization of the Secured Obligations and/or toward reduction
of any commitments relating thereto pro rata pursuant to and in
accordance with Section 2.7 of the Intercreditor Agreement; and

	 	(3)	 	if the Borrower at any time notifies the
Agents that it no longer intends to utilize the Allocated Net Cash
Proceeds for Permitted Reinvestments, then the Collateral Agent shall
apply such Allocated Net Cash Proceeds (less any amounts that have
been released to or at the direction of the Borrower in accordance
with clause (ii)(1) above) toward repayment or cash collateralization
of the Secured Obligations and/or toward reduction of any commitments
relating thereto pro rata pursuant to and in accordance with Section
2.7 of the Intercreditor Agreement.

(iii) Notwithstanding anything in this clause (c) to the contrary and
subject to the Intercreditor Agreement, upon the occurrence and during the
continuation of any Event of Default, if and to the extent so directed by
the Required Lenders, the Collateral Agent will apply any Allocated Net
Cash Proceeds then on deposit in the Reinvestment Cash Collateral Account
toward repayment or cash collateralization of the Secured Obligations
and/or toward reduction of any commitments relating thereto pro rata
pursuant to and in accordance with Section 2.7 of the Intercreditor
Agreement.

(iv) With respect to the Lenders’ portion of the Allocated Net Cash
Proceeds on deposit in the Reinvestment Cash Collateral Account, if at any
time the Collateral Agent shall apply such Allocated Net Cash Proceeds
toward repayment or cash collateralization of the Secured Obligations
and/or toward reduction of any commitments relating thereto in accordance
with Section 2.7 of the Intercreditor Agreement and this clause (c), then
the pro rata portion of such Allocated Net Cash Proceeds that are to be
applied toward the Secured Obligations hereunder shall be applied as
follows:

	 	(1)	 	first, the Commitments of the Lenders shall
be reduced pro rata in an amount equal to the amount of such
proceeds;

	 	(2)	 	second, if following such reduction of
Commitments, any prepayment of the Loans shall be required pursuant
to clause (b) of this Section 2.12, then the Collateral Agent shall
apply such proceeds to the extent required to make such required
prepayment; and

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	 	(3)	 	third, any remaining proceeds shall be
released to or at the direction of the Borrower.

          (d) The Borrower shall deliver to the Administrative Agent at the time of each prepayment,
return, reduction or cash collateralization required under this Section 2.12, (i) a certificate
signed by a Responsible Officer of the Borrower setting forth in reasonable detail the calculation
of the amount of such prepayment, return, reduction or cash collateralization and (ii) to the
extent practicable, prior written notice of such prepayment, return, reduction or cash
collateralization (and the Administrative Agent shall promptly provide the same to each Lender).
Each notice of prepayment, return, reduction or cash collateralization shall specify the
prepayment, return, reduction or cash collateralization date, the Type of each Loan being prepaid
and the principal amount of each Loan (or portion thereof) to be prepaid and the amount of any
reduction of Commitments. All prepayments of Borrowings or reductions of the Commitments pursuant
to this Section 2.12 shall (i) include any unpaid amount of the Unused Commitment Fee on the amount
of the Commitments so reduced, accrued to but excluding the date of such reduction, (ii) be subject
to Section 2.16, but shall otherwise be without premium or penalty and (iii) shall be at the
direction of the Borrower. Notwithstanding anything in this Section 2.12 to the contrary, to the
extent that no Default or Event of Default shall have occurred and be continuing at such time and
that any such prepayment would be applied to a Eurodollar Loan prior to the end of the applicable
Eurodollar Interest Period, the Borrower may request the Administrative Agent that the amount
required to be applied to prepay the Loans pursuant to clause (c) of this Section 2.12 shall be
placed (or remain) in the Reinvestment Cash Collateral Account and be applied to prepay the
applicable Loans on the last date of the applicable Eurodollar Interest Period instead of making
such prepayment within the time period otherwise required. Notwithstanding the foregoing, to the
extent permitted by Applicable Law, until such time as the Default Excess with respect to such
Defaulting Lender shall have been reduced to zero, any mandatory prepayment of the Loans made under
this Section 2.12 and applied pursuant to this clause (d) shall be applied first to the Loans of
other Lenders as if such Defaulting Lender had no Loans outstanding and the Revolving Credit
Outstandings of such Defaulting Lender were zero.

          SECTION 2.13. Payments and Computations. (a) The Borrower shall make each payment
hereunder (including fees and expenses) not later than 12:00 p.m. (New York time) on the day when
due, in dollars, to the Administrative Agent at its address referred to in Section 9.01 in
immediately available funds without set-off or counterclaim. The Administrative Agent shall
promptly thereafter cause to be distributed immediately available funds relating to the payment of
principal, interest or fees to the Lenders, in accordance with the application of payments set
forth in clause (f) or (g) below, as applicable, for the account of their respective applicable
lending offices; provided, however, that amounts payable pursuant to Section 2.14,
Section 2.16 or Section 2.19 shall be paid only to the affected Lender or Lenders. Payments
received by the Administrative Agent after 12:00 p.m. (New York time) shall be deemed to be
received on the next Business Day.

          (b) All computations of interest and of fees shall be made by the Administrative Agent on the
basis of the actual number of days elapsed in the period for which such interest and fees are
payable (including the first day but excluding the last day) (i) for ABR Loans based on the Base
Rate (other than with respect to the Federal Funds Rate), over a year of 365/366 days, and (ii) for
Eurodollar Loans, ABR Loans based on the Federal Funds Rate and all

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fees, over a year of 360 days. Each determination by the Administrative Agent of a rate of
interest hereunder shall be conclusive and binding for all purposes, absent manifest error.

          (c) Each payment by the Borrower of any Loan, Reimbursement Obligation (including interest or
fees in respect thereof) and each reimbursement of various costs, expenses or other Secured
Obligation shall be made in dollars; provided, however, that other than for
payments in respect of a Loan or Reimbursement Obligation, Loan Documents duly executed by the
Administrative Agent or any hedging contract governing the applicable Interest Rate Hedging
Transaction or Currency Hedging Transaction may specify other currencies of payment for Secured
Obligations created by or directly related to such Loan Document or such hedging contract.

          (d) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, the due date for such payment shall be extended to the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest or fees,
as the case may be; provided, however, that if such extension would cause payment
of interest on or principal of any Eurodollar Loan to be made in the next calendar month, such
payment shall be made on the immediately preceding Business Day.

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

          (f) Except for payments and other amounts received by the Administrative Agent and applied in
accordance with the provisions of clause (g) below (or required to be applied in accordance with
Section 2.12(d)), all payments and any other amounts received by the Administrative Agent from or
for the benefit of the Borrower shall be applied as follows: first, to pay principal of, and
interest on, any portion of the Loans the Administrative Agent may have advanced pursuant to the
express provisions of this Agreement on behalf of any Lender, for which the Administrative Agent
has not then been reimbursed by such Lender or the Borrower, second, to pay all other Secured
Obligations then due and payable and third, as the Borrower so designates. Payments in respect of
Loans received by the Administrative Agent shall be distributed to each Lender in accordance with
such Lender’s Ratable Portion of the Commitments and all payments of fees and all other payments in
respect of any other Secured Obligation shall be allocated among such of the Lenders and Issuers as
are entitled thereto and, for such payments allocated to the Lenders, in proportion to their
respective Ratable Portions. Notwithstanding the foregoing, to the extent permitted by Applicable
Law, until such time as the Default Excess with respect to such Defaulting Lender shall have been
reduced to zero, any payment of the Loans made under this Section 2.13 and applied pursuant to this
clause (f) shall be applied first to the

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Loans of other Lenders as if such Defaulting Lender had no Loans outstanding and the Revolving
Credit Outstandings of such Defaulting Lender were zero.

          (g) The Borrower hereby irrevocably waives the right to direct the application of any and all
payments in respect of the Secured Obligations under any Loan Document and any proceeds of
Collateral after the occurrence and during the continuance of an Event of Default and agrees that,
notwithstanding the provisions of Section 2.12(d) and clause (f) above, the Collateral Agent shall
apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral
received by it in accordance with the Intercreditor Agreement and all other proceeds of Collateral
constituting the applicable Designated Assets (as such term is defined in the Intercreditor
Agreement) in the order set forth in Section 3.5 of the Intercreditor Agreement.

          SECTION 2.14. Reserve Requirements; Change in Circumstances. (a) Notwithstanding any
other provision of this Agreement, if any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by
any Lender or Issuer, or

     (ii) impose on any Lender or Issuer or the London interbank market any other condition
affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or
participation therein (except, in the case of both clause (i) and this clause (ii), any
such reserve requirement which is reflected in the Adjusted LIBO Rate),

and, such Change in Law becomes effective after the date hereof and the result of any of the
foregoing shall be to increase the cost to such Lender or such Issuer of making or maintaining any
Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to
such Lender or such Issuer of issuing or maintaining any Letter of Credit or purchasing or
maintaining a participation therein or to reduce the amount of any sum received or receivable by
such Lender or such Issuer hereunder (whether of principal, interest or otherwise) by an amount
reasonably deemed by such Lender or such Issuer to be material, then the Borrower will pay to such
Lender or such Issuer, as the case may be, such additional amount or amounts as will compensate
such Lender or such Issuer, as the case may be, for such additional costs incurred or reduction
suffered. This Section 2.14(a) shall not apply to Taxes, which shall be governed by Section 2.19
and related definitions.

          (b) If any Lender or Issuer shall have determined that any Change in Law regarding capital
adequacy that becomes effective after the date of this Agreement has or would have the effect of
reducing the rate of return on such Lender’s or such Issuer’s capital or on the capital of such
Lender’s or such Issuer’s holding company, if any, as a consequence of this Agreement or the Loans
made by, or participations in Letters of Credit purchased by, such Lender or the Letters of Credit
issued by such Issuer to a level below that which such Lender or such Issuer or such Lender’s or
such Issuer’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or such Issuer’s policies and the policies of such Lender’s or such
Issuer’s holding company, as the case may be, with respect to capital adequacy) by an amount
reasonably deemed by such Lender or such Issuer to be material, then the Borrower shall pay to such
Lender or such Issuer, as the case may be, such additional amount or amounts as will compensate
such Lender or such Issuer or such Lender’s or such Issuer’s holding company, as the case may be,
for any such reduction suffered.

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          (c) Any Lender or Issuer requesting compensation pursuant to paragraph (a) or (b) of this
Section 2.14 shall deliver a written statement to Borrower setting forth the amount or amounts
reasonably determined by such Lender or such Issuer to be necessary to compensate such Lender or
such Issuer or such Lender’s or such Issuer’s holding company, as applicable, as specified in
paragraph (a) or (b) of this Section 2.14, which written statement shall, absent clearly
demonstrable error, be final and conclusive and binding. The Borrower shall pay such Lender or
such Issuer, as the case may be, the amount or amounts shown as due on any such written statement
delivered by it within 10 days after its receipt of the same.

          (d) Failure or delay on the part of any Lender or any Issuer to demand compensation pursuant
to this Section shall not constitute a waiver of such Lender’s, the Administrative Agent’s or such
Issuer’s right to demand such compensation; provided, that the Borrower shall not be under
any obligation to compensate any Lender, the Administrative Agent or an Issuer under paragraph (a)
or (b) above for increased costs or reductions suffered more than 180 days prior to the date of
delivery of the written statement required by paragraph (c); provided further, that if the
circumstances giving rise to such demand have retroactive application, such 180-day period shall be
extended to include the period of such retroactive effect. The protection of this Section 2.14(d)
shall be available to each Lender and Issuer regardless of any possible contention of the
invalidity or inapplicability of the Change in Law that shall have occurred or been imposed.

          SECTION 2.15. Change in Legality. (a) Notwithstanding any other provision of this
Agreement, if any Change in Law shall make it unlawful for any Lender to make or maintain any
Eurodollar Loan or to give effect to its obligations as contemplated hereby with respect to any
Eurodollar Loan, then, by written notice to the Borrower (which notice shall include documentation
or information in reasonable detail supporting the conclusions in such notice) and to the
Administrative Agent:

     (i) such Lender may declare that Eurodollar Loans will not thereafter (for the
duration of such unlawfulness) be made by such Lender hereunder (or be continued for
additional Interest Periods and ABR Loans will not thereafter (for such duration) be
converted into Eurodollar Loans), whereupon any request for a Eurodollar Borrowing (or to
convert an ABR Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing
for an additional Interest Period) shall, as to such Lender only, be deemed a request for
an ABR Loan (or a request to continue an ABR Loan as such for an additional Interest Period
or to convert a Eurodollar Loan into an ABR Loan, as the case may be), unless such
declaration shall be subsequently withdrawn; and

     (ii) such Lender may require that all outstanding Eurodollar Loans made by it be
converted to ABR Loans, in which event all such Eurodollar Loans shall be automatically
converted to ABR Loans as of the effective date of such notice as provided in paragraph (b)
below.

In the event any Lender shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the Eurodollar Loans that
would have been made by such Lender or the converted Eurodollar Loans of such Lender shall instead
be applied to repay the ABR Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans. Any such conversion of a Eurodollar Loan under clause (i) above shall
be subject to Section 2.16.

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          (b) For purposes of this Section 2.15, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the last day of the
Interest Period then applicable to such Eurodollar Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

          (c) With respect to each Lender that has delivered a notice pursuant to this Section 2.15, the
Base Rate with respect to Loans made by such Lender shall be calculated as if the proviso to the
definition of “Base Rate” were not included in the definition of “Base Rate” during the period such
notice remains in force and effect.

          SECTION 2.16. Indemnity. The Borrower shall indemnify each Lender (and in the case of
clause (c) below, also including the Administrative Agent) against any loss or expense that such
Lender may sustain or incur as a consequence of (a) any event, other than a default by such Lender
in the performance of its obligations hereunder, which results in (i) such Lender receiving or
being deemed to receive any amount on account of the principal of any Eurodollar Loan prior to the
end of the Interest Period in effect therefor, (ii) the conversion of any Eurodollar Loan to an ABR
Loan, or the conversion of the Interest Period with respect to any Eurodollar Loan, in each case
other than on the last day of the Interest Period in effect therefor and (iii) any Eurodollar Loan
to be made by such Lender (including any Eurodollar Loan to be made pursuant to a conversion or
continuation under Section 2.10) not being made after notice of such Loan shall have been given by
the Borrower hereunder (any of the events referred to in this clause (a) being called a
“Breakage Event”); (b) any default in the making of any payment or prepayment required to
be made hereunder or (c) without duplication under this Agreement, any amount withheld pursuant to
Section 2.19 hereof. In the case of any Breakage Event, such loss shall include, in the case of a
Lender, an amount equal to the excess, as reasonably determined by such Lender, of (i) its cost of
obtaining funds for the Eurodollar Loan that is the subject of such Breakage Event for the period
from the date of such Breakage Event to the last day of the Interest Period in effect (or that
would have been in effect) for such Loan, as the case may be, over (ii) the amount of interest
likely to be realized by such Lender in redeploying the funds released or not utilized by reason of
such Breakage Event for such period. A certificate of any Lender setting forth any amount or
amounts which such Lender believes it is entitled to receive pursuant to this Section 2.16,
including the calculations and criteria applied to determine such amount or amounts, and other
documentation or information reasonably supporting the conclusions in such certificate, shall be
delivered to the Borrower and shall, absent clearly demonstrable error, be final and conclusive and
binding. Notwithstanding anything to the contrary in this Section 2.16, Borrower shall not be
under any obligation to compensate any Lender or Issuer under this Section 2.16 for any amounts
incurred more than 180 days prior to the date of delivery of such certificate, documentation and
information; provided, that if the circumstances giving rise to such demand have
retroactive application, such 180-day period shall be extended to include the period of such
retroactive effect.

          SECTION 2.17. Pro Rata Treatment. (a) Except as required under Section 2.05, 2.11,
2.12, 2.13, 2.15, 2.16, 2.19 and paragraph (b) of this Section 2.17, each Borrowing, each payment
or prepayment of principal of any Borrowing, each payment of Reimbursement Obligations, each
payment of interest on the Loans, each payment of the Unused Commitment Fees, each reduction of the
Commitments and each conversion of any Borrowing to or continuation of any Borrowing as a Borrowing
of any Type shall be allocated pro rata among the Lenders (in the case of payments, to each Lender
entitled to receive such payments) in accordance with their respective Commitments (or, if such
Commitments shall have expired or

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been terminated, in accordance with the respective principal amounts of their outstanding
Loans). Each Lender agrees that in computing such Lender’s portion of any Borrowing to be made
hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of such
Borrowing to the next higher or lower whole dollar amount.

          (b) Notwithstanding anything to the contrary contained in this Agreement, if any Lender
constitutes a Defaulting Lender as a result of its failure to make available its Ratable Portion of
any Borrowing pursuant to Section 2.02 or to pay (other than as a result of a good faith dispute)
any amount required to be paid by such Lender to any Issuer pursuant to Section 2.03, then the
Administrative Agent may, it its discretion (and subject to the terms of the Intercreditor
Agreement), apply any amounts thereafter received by the Administrative Agent for the account of
such Defaulting Lender from or on behalf of the Borrower or any Loan Party or otherwise in respect
of any amounts owed hereunder or under any other Loan Document to the satisfaction of its
obligations under such Sections until all such unsatisfied obligations are paid in full.

          SECTION 2.18. Sharing of Setoffs. Each Lender agrees that if it shall, through the
exercise of a right of banker’s lien, setoff or counterclaim against the Borrower or any other Loan
Party, or pursuant to a secured claim under Section 506 of the Bankruptcy Code or other security or
interest arising from, or in lieu of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan or Loans as a result of which the unpaid
principal portion of its Loans shall be proportionately less than the unpaid principal portion of
the Loans of any other Lender, it shall be deemed simultaneously to have purchased from such other
Lender at face value, and shall promptly pay to such other Lender the purchase price for, a
participation in the Loans of such other Lender, so that the aggregate unpaid principal amount of
the Loans and participations in Loans held by each Lender shall be in the same proportion to the
aggregate unpaid principal amount of all Loans then outstanding as the principal amount of its
Loans prior to such exercise of banker’s lien, setoff or counterclaim or other event was to the
principal amount of all Loans outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however, that if any such purchase or
purchases or adjustments shall be made pursuant to this Section 2.18 and the payment giving rise
thereto shall thereafter be recovered, such purchase or purchases or adjustments shall be rescinded
to the extent of such recovery and the purchase price or prices or adjustment restored without
interest.

          SECTION 2.19. Taxes. (a) Except as otherwise provided herein and as required by
Applicable Law, any and all payments by or on account of any obligation of the Borrower or any
other Loan Party hereunder or under any other Loan Document shall be made free and clear of and
without deduction or withholding for any Indemnified Taxes; provided that if the Borrower
or any other Loan Party shall be required to deduct or withhold any Indemnified Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions and withholdings (including deductions and withholdings applicable to
additional sums payable under this Section) the Administrative Agent or such Lender (as the case
may be) receives an amount equal to the sum it would have received had no such deductions and
withholdings been made; (ii) the Borrower or such other Loan Party shall make (or cause to be made)
such deductions and withholdings and (iii) the Borrower or such other Loan Party shall pay (or
cause to be paid) the full amount deducted or withheld to the relevant Governmental Authority in
accordance with Applicable Law.

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          (b) In addition, the Borrower or any other Loan Party hereunder shall pay (or cause to be
paid) any Other Taxes imposed other than by deduction or withholding to the relevant Governmental
Authority in accordance with Applicable Laws.

          (c) The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, or any of their respective Affiliates,
on or with respect to any payment by or on account of any obligation of the Borrower or any Loan
Party hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section 2.19) and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A written statement as to the amount of such payment or liability
shall be delivered to the Borrower by a Lender, or by the Administrative Agent on its behalf or on
behalf of the Lender, promptly upon such party’s determination of an indemnifiable event and such
written statement shall be conclusive absent demonstrable error; provided that the failure
to deliver such written statement shall not affect the obligations of the Borrower under this
Section 2.19(c) except to the extent the Borrower is actually prejudiced thereby. The written
statement shall include (i) in the event of a payment by the Lender or the Administrative Agent of
an Indemnified Tax or Other Tax, the original or a copy of a receipt issued by such Governmental
Authority evidencing such payment or other evidence of such payment together with a written
statement setting forth the amount of such Indemnified Taxes or Other Taxes or (ii) in the event of
payment to be made by the Borrower, the amount of such Taxes, in each case, delivered to Borrower
by a Lender or by the Administrative Agent. A payment under this Section 2.19(c) shall be made
within 15 days from the date of delivery of such written statement; provided that the
Borrower shall not be obligated to make any such payment to the Administrative Agent or the Lender
(as the case may be) in respect of penalties, interest and other liabilities attributable to any
Indemnified Taxes or Other Taxes if and to the extent that such penalties, interest and other
liabilities are attributable to the gross negligence or willful misconduct of the Administrative
Agent or such Lender or to the failure of the Administrative Agent or a Lender to deliver a timely
written statement as to the amount of an indemnifiable liability.

          (d) As soon as reasonably practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower or any other Loan Party to a Governmental Authority, and in any event within 60 days
of such payment being due, the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the reasonable request of the Borrower, 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 of withholding; provided that
such Lender is legally entitled to complete, execute and deliver such documentation, and in such
Lender’s judgment such completion, execution or delivery would not materially prejudice the legal
position of such Lender.

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     In addition, each Foreign Lender (and, if applicable, the Administrative Agent) shall (i)
furnish on or before it becomes a party to this Agreement and when reasonably requested by the
Borrower or the Administrative Agent (as applicable) either (a) two accurate and complete
originally executed U.S. Internal Revenue Service Form W-8BEN and/or Form W-8IMY, as applicable (or
successor form) or (b) an accurate and complete U.S. Internal Revenue Service Form W-8ECI (or
successor form), certifying, in either case, to such Foreign Lender’s legal entitlement to an
exemption or reduction from U.S. federal withholding tax with respect to all interest payments
hereunder, and (ii) provide a new Form W-8BEN and/or Form W-8IMY, as applicable (or successor form)
or Form W-8ECI (or successor form) upon the expiration or obsolescence of any previously delivered
form to reconfirm any complete exemption from, or any entitlement to a reduction in, U.S. federal
withholding tax with respect to any interest payment hereunder; provided that any Foreign
Lender that is not a “bank” within the meaning of Section 881(c)(3)(A) of the Tax Code and
is relying on the so-called “portfolio interest exemption” shall also furnish a
“Non-Bank Certificate” in the form of Exhibit G hereto together with an accurate
and complete originally executed Form W-8BEN (or successor form). Notwithstanding any other
provision of this paragraph, a Foreign Lender shall not be required to deliver any form pursuant to
this paragraph that such Foreign Lender is not legally able to deliver.

          (f) Any Lender that is a United States person, as defined in Section 7701(a)(30) of the Tax
Code, and is not an exempt recipient within the meaning of Treasury Regulations Section 1.6049-4(c)
shall deliver to the Borrower (with a copy to the Administrative Agent) two accurate and complete
original signed copies of Internal Revenue Service Form W-9, or any successor form that such person
is entitled to provide at such time in order to comply with United States back-up withholding
requirements.

          (g) For purposes of this Section 2.19, in the case of any Lender that is treated as a
partnership for U.S. federal income tax purposes, any Taxes required to be deducted and withheld by
such Lender with respect to payments made by the Borrower under any Loan Document shall be treated
as Taxes required to be deducted by the Borrower, but only to the extent such Taxes would have been
required to be deducted and withheld by the Lender if it were treated as a corporation for U.S.
federal income tax purposes making such payments under the Loan Documents on behalf of the Borrower
and Excluded Taxes were defined by reference to the partner (treating the partner as a Foreign
Lender) to whom payments are made.

          (h) If the Administrative Agent or any Lender requests, or the Borrower is required to make,
any indemnification or payment (excluding Other Taxes) under this Section 2.19, then the
Administrative Agent or the relevant Lender shall use reasonable efforts to designate a different
applicable lending office or to assign its rights and obligations under the Loan Documents to
another of its branches or such other Person as the Borrower may reasonably request if (i) such
designation or assignment could reasonably be expected to reduce or eliminate amounts payable
pursuant to this Section 2.19, and (ii) in the sole discretion of the Administrative Agent or such
Lender (as applicable) such designation or assignment would not subject it to any unreimbursed cost
or expense or would not otherwise be disadvantageous to it. The Borrower agrees to pay all costs
and expenses incurred by the Administrative Agent or such Lender in connection with such
designations or assignment.

          (i) If the Administrative Agent or any Lender determines in its sole discretion that it has
received a refund in respect of Indemnified Taxes or Other Taxes to which it has been indemnified
by Borrower pursuant to this Section 2.19, it shall within 20 days of such receipt pay over such
refund to Borrower (but only to the extent of indemnity payments made by

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such Borrower under this Section 2.19 with respect to Indemnified Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender
and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund); provided, however, that such Borrower, upon the request of
the Administrative Agent or such Lender, agrees to repay the amount paid over to the relevant
Borrower (plus the interest received by such Borrower that was originally paid by the relevant
Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental Authority. Nothing in
this Section 2.19 shall be construed to require the Administrative Agent or any Lender to make
available its tax returns (or any other Tax-related information that it deems confidential) to
Borrower or any other Person.

          (j) The Administrative Agent and each Lender shall take all reasonable actions (consistent
with legal and regulatory restrictions) requested by a Borrower to assist such Borrower or any
other Loan Party to recover from the relevant Governmental Authority any Indemnified Taxes or Other
Taxes in respect of which amounts were paid by such Borrower or any other Loan Party pursuant to
this Section 2.19. However, no Lender will be required to take any action that, in the judgment of
such Lender, would be legally inadvisable or commercially disadvantageous to such Lender. Any Loan
Party who requests such assistance from the Administrative Agent or a Lender will bear all
reasonable costs and expenses associated with recovering such amounts from the relevant
Governmental Authority. For the avoidance of doubt, this section 2.19(j) shall not affect any
Borrower’s indemnity obligations under Section 2.19(a).

          (k) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in this Section 2.19 shall survive the payment
in full of all amounts due hereunder.

          SECTION 2.20. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate.
(a) In the event that (i) any Lender or any Issuer delivers a written statement requesting
compensation pursuant to Section 2.14, (ii) any Lender or any Issuer delivers a notice described in
Section 2.15, (iii) the Borrower is required to pay any additional amount to any Lender or any
Issuer or any Governmental Authority on account of any Lender or any Issuer pursuant to Section
2.19, (iv) any Lender does not consent to any proposed amendment, supplement, modification, consent
or waiver of any provision of this Agreement or any other Loan Document that requires the consent
of each of the Lenders or each of the Lenders affected (so long as the consent of the Required
Lenders has been obtained) in accordance with Section 9.08(c) or (v) any Lender is a Defaulting
Lender, the Borrower may, at its sole expense and effort (including with respect to any applicable
processing and recordation fee referred to in Section 9.04(e)), upon notice to such Lender or such
Issuer and the Administrative Agent, require such Lender or such Issuer to transfer and assign,
without recourse (in accordance with and subject to the restrictions contained in Section 9.04),
all of its interests, rights and obligations under this Agreement to an assignee that shall assume
such assigned obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) such assignment shall not conflict with any law, rule or
regulation or order of any court or other Governmental Authority having jurisdiction, (y) the
Borrower shall have received the prior written consent of the Administrative Agent and each Issuer,
which consent shall not unreasonably be withheld or delayed, and (z) the Borrower or such assignee
shall have paid to the affected Lender or Issuer in immediately available funds an amount equal to
the sum of the principal of and interest accrued to the date of such payment on the outstanding
Loans of such Lender or Issuer, respectively, plus

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all fees and other amounts accrued for the account of such Lender or Issuer hereunder
(including any amounts under Section 2.14 and Section 2.16); provided further that,
if prior to any such transfer and assignment the circumstances or event that resulted in such
Lender’s or Issuer’s claim for compensation under Section 2.14 or notice under Section 2.15 or the
amounts paid pursuant to Section 2.19, as the case may be, cease to cause such Lender or Issuer to
suffer increased costs or reductions in amounts received or receivable or reduction in return on
capital, or cease to have the consequences specified in Section 2.15, or cease to result in amounts
being payable under Section 2.19, as the case may be (including as a result of any action taken by
such Lender or Issuer pursuant to paragraph (b) below), or if such Lender or Issuer shall waive its
right to claim further compensation under Section 2.14 in respect of such circumstances or event or
shall withdraw its notice under Section 2.15 or shall waive its right to further payments under
Section 2.19 in respect of such circumstances or event, as the case may be, then such Lender or
Issuer shall not thereafter be required to make any such transfer and assignment hereunder.

          (b) If any Lender or Issuer becomes aware of the occurrence of an event that would (i) entitle
such Lender or Issuer to request compensation under Section 2.14, (ii) entitle such Lender or
Issuer to deliver a notice described in Section 2.15 or (iii) trigger the requirement for the
Borrower to pay any additional amount to any Lender or Issuer or any Governmental Authority on
account of any Lender or Issuer, pursuant to Section 2.19, then such Lender or Issuer shall as
promptly as practicable use reasonable efforts (which shall not require such Lender or Issuer to
incur an unreimbursed loss or unreimbursed cost or expense or otherwise take any action
inconsistent with its internal policies or legal or regulatory restrictions or suffer any
disadvantage or burden reasonably deemed by it to be significant) (x) to file any certificate or
document reasonably requested in writing by the Borrower, (y) to assign its rights and delegate and
transfer its obligations hereunder to another of its offices, branches or Affiliates, or (z)
designate another of its offices, branches or Affiliates for funding or booking its Loans
hereunder, if such filing or assignment would avoid, reduce or eliminate any claims for
compensation under Section 2.14 or enable it to avoid or withdraw any notice pursuant to Section
2.15 or would avoid, reduce or eliminate amounts payable pursuant to Section 2.19, as the case may
be, at such time or in the future. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender or Issuer in connection with any such filing or assignment,
delegation and transfer.

          SECTION 2.21. Incremental Facilities. (a) The Borrower may, by written notice to the
Administrative Agent prior to the Revolving Credit Termination Date, elect to request, an increase
to the existing Commitments (any such increase, the “New Commitments”) to effect the
incurrence of secured Indebtedness permitted to be incurred pursuant to Section 6.01(d) in an
amount not to exceed $500,000,000 in the aggregate. New Commitments shall be secured pari passu
with the existing Secured Obligations pursuant to the Intercreditor Agreement and shall not be less
than $10,000,000 individually (or such lesser amount which shall be approved by the Administrative
Agent or such lesser amount which shall constitute the difference between the amount of secured
Indebtedness permitted to be incurred pursuant to (i) Section 6.01(c) and this Section 2.21 and
(ii) all New Commitments obtained prior to such date) and integral multiples of $1,000,000 in
excess of such amount. Each such notice shall specify the date (each, an “Increased Commitment
Date”) on which the Borrower proposes that the New Commitments shall be effective, which shall
be a date not less than 10 Business Days after the date on which such notice is delivered to the
Administrative Agent; provided that the Borrower shall first offer the Lenders, on a pro
rata basis, the opportunity to provide all of the New Commitments prior to offering such
opportunity to any other Person that is an eligible assignee pursuant to Section 9.04(b);
provided, further, that any Lender offered or approached to provide all or a
portion of the

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New Commitments may elect or decline, in its sole discretion, to provide a New Commitment.
Such New Commitments shall become effective as of such Increased Commitment Date; provided
that (i) no Default or Event of Default shall exist on such Increased Commitment Date before or
after giving effect to such New Commitments, as applicable; (ii) the Borrower and its Subsidiaries
shall be in pro forma compliance with each of the Financial Covenants as of the last day of the
most recently ended fiscal quarter for which financial statements are required to be delivered
pursuant to Section 5.05(a) and 5.05(b) after giving effect to such New Commitments and any
Investment to be consummated in connection therewith; (iii) the New Commitments shall be subject to
the same terms and conditions as the existing Commitments under this Agreement (except that upfront
fees paid to Lenders providing New Commitments may be less than the upfront fees that were paid to
the existing Lenders on the Signing Date); (iv) the New Commitments shall be effected pursuant to
one or more Joinder Agreements executed and delivered by the Borrower and the Administrative Agent,
and each of which shall be recorded in the Register; (v) the Borrower shall make any payments
required pursuant to Section 2.16 in connection with the New Commitments, as applicable; (vi) the
Borrower shall deliver or cause to be delivered any legal opinions or other documents reasonably
requested by the Administrative Agent in connection with any such transaction; (vii) the
requirements set forth in Section 9.17 shall have been satisfied; and (viii) the representations
and warranties set forth in each Loan Document shall be true and correct in all material respects
(except to the extent that such representations and warranties are qualified as to materiality, in
which case they shall be true and correct in all respects) on and as of such Increased Commitment
Date with the same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material respects (or true and
correct in all respects, as provided in the parenthetical above) on and as of such earlier date.

          (b) On any Increased Commitment Date on which New Commitments are effected, subject to the
satisfaction of the foregoing terms and conditions, (i) each of the Lenders with Commitments shall
assign to each Lender with a New Commitment (each, a “New Lender”) and each of the New
Lenders shall purchase from each of the Lenders with Commitments, at the principal amount thereof
(together with accrued interest), such interests in the Loans outstanding on such Increased
Commitment Date as shall be necessary in order that, after giving effect to all such assignments
and purchases, such Loans will be held by existing Lenders with Loans and New Lenders ratably in
accordance with their Commitments after giving effect to the addition of such New Commitments to
the Commitments, (ii) each New Commitment shall be deemed for all purposes a Commitment and each
loan made thereunder shall be deemed, for all purposes, a Loan and (iii) each New Lender shall
become a Lender with respect to its New Commitment and all matters relating thereto.

          (c) The Administrative Agent shall notify the Lenders promptly upon receipt of the Borrower’s
notice of each Increased Commitment Date and in respect thereof the New Commitments and New Lenders
and the respective interests in such Lender’s Loans subject to the assignments contemplated by
clause (b) of this Section 2.21.

          (d) Each Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in
the opinion of the Administrative Agent and the Collateral Agent, to effect the provisions of this
Section 2.21.

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ARTICLE III

Representations and Warranties

     To induce the Administrative Agent, the Collateral Agent, the Issuers and each of the Lenders
(i) to enter into this Agreement, the Borrower hereby represents and warrants to the Arrangers, the
Administrative Agent, the Collateral Agent, each Issuer and each of the Lenders on the Signing Date
(immediately before and immediately after giving effect to this Agreement) that the representations
and warranties set forth in Annex III hereto are true and correct in all material respects
(except to the extent that such representations and warranties are qualified as to materiality, in
which case they shall be true and correct in all respects) and (ii) to make the Loans and issue or
participate in the Letters of Credit, the Borrower hereby represents and warrants to the Arrangers,
the Administrative Agent, the Collateral Agent, each Issuer and each of the Lenders on the Funds
Availability Date (immediately before and immediately after giving effect to the Transactions) and
on the date of each Borrowing of Loans or Issuance of a Letter of Credit hereunder, that:

          SECTION 3.01. Organization; Powers. The Borrower and each of its Subsidiaries (a) is
duly organized or formed, validly existing and in good standing under the laws of the jurisdiction
of its organization or formation, (b) has all requisite corporate, limited liability or partnership
power and authority, and the legal right, to own and operate its property and assets, to lease the
property it operates as lessee and to carry on those aspects of the Permitted Business that it now
conducts, (c) is qualified to do business in, and is in good standing in, every jurisdiction where
such qualification is required, except where the failure so to qualify, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect and (d) has the
corporate, limited liability or partnership power and authority, and the legal right, to execute,
deliver and perform its obligations under this Agreement, each of the other Loan Documents and the
Separation Financing Documents, including, in the case of the Borrower, to borrow hereunder and to
issue the Senior Notes and the Funds Availability Indebtedness under the applicable Separation
Financing Documents, in the case of each Loan Party, to grant the Liens contemplated to be granted
by it under the Security Documents and, in the case of each Subsidiary Guarantor, to Guarantee the
Secured Obligations arising hereunder as contemplated by the Guarantee and Collateral Agreement.

          SECTION 3.02. Authorization; No Conflicts. The Transactions (a) have been duly
authorized by all requisite corporate, partnership or limited liability company and, if required,
stockholder, partner or member action and (b) do not (i) violate, conflict with, result in a breach
of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to
any right to accelerate or to require the prepayment, repurchase or redemption of any obligation
under, (A) any applicable provision of any material law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or by-laws of the Borrower
or any Subsidiary, (B) any order of any Governmental Authority or arbitrator or (C) any provision
of any indenture or any material agreement or other material instrument to which the Borrower or
any Subsidiary is a party or by which any of them or any of their property is or may be bound; or
(ii) result in the creation or imposition of any Lien upon or with respect to any property or
assets now owned or hereafter acquired by the Borrower or any other Loan Party (other than Liens
created under the Security Documents).

          SECTION 3.03. Enforceability. Each Loan Party has duly executed and delivered each
Loan Document to which it is a party and each such Loan Document constitutes a

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legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or other laws now or hereafter in effect relating to creditors’
rights generally and (including with respect to specific performance) subject to general principles
of equity, regardless of whether considered in a proceeding in equity or at law, and to the
discretion of the court before which any proceeding therefor may be brought.

          SECTION 3.04. Approvals. No action, consent or approval of, registration or filing
with, notice to, or any other action by, any Governmental Authority or in respect of any Material
Contract or Key Contract is required in connection with the Transactions, except for (a) the filing
of UCC financing statements and filings with the United States Patent and Trademark Office and the
United States Copyright Office and filings in any other applicable jurisdiction outside of the
United States, (b) recordation of the Mortgages, (c) such other actions specifically described in
Section 3.19, (d) any immaterial actions, consents, approvals, registrations or filings, or (e)
such as have been made or obtained and are in full force and effect.

          SECTION 3.05. Financial Statements. (a) The Borrower has, on or prior to the Funds
Availability Date, furnished to the Lenders (i) the most recent audited historical combined
financial statements for the non-utility nuclear business of Entergy and its consolidated
subsidiaries (together, “Entergy Nuclear”) included in the Registration Statement, which
audited historical combined financial statements have been audited by and are accompanied by the
unqualified opinion of Deloitte & Touche LLP, independent public accountants, and (ii) the most
recent unaudited interim combined financial statements of Entergy Nuclear included in the
Registration Statement. Such financial statements present fairly in all material respects the
financial condition, results of operations and cash flows of Entergy Nuclear on a combined basis as
of and for their respective periods and have been prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved (except, with respect to such financial statements
referred to in clause (ii) above, for normal year-end adjustments and the omission of certain
information and footnote disclosures as permitted by SEC rules and regulations).

          (b) The Borrower also has, on or prior to the Funds Availability Date, furnished to the
Lenders (i) the most recent unaudited pro forma combined financial statements for Entergy Nuclear
included in the Registration Statement, which have been derived from Entergy Nuclear’s audited
historical combined financial statements as of and for the fiscal year ended December 31, 2007 (or
such later date as may be specified in the Registration Statement), and (ii) the most recent
unaudited pro forma combined financial statements of Entergy Nuclear included in the Registration
Statement, which have been derived from the most recent unaudited interim combined financial
statements of Entergy Nuclear included in the Registration Statement. Such unaudited pro forma
combined financial statements have been prepared on a basis consistent with the historical combined
financial statements of Entergy Nuclear from which they are derived (except for the pro forma
adjustments specified therein) and include assumptions that provide a reasonable basis for
presenting the significant effects directly attributable to the Separation Transactions and the
events described therein, the related pro forma adjustments give appropriate effect to those
assumptions and the pro forma adjustments reflect the proper application of those adjustments to
the historical combined financial statements from which they are derived and comply as to form in
all material respects with the applicable accounting requirements of Regulations S-X under the
Securities Act of 1933, as amended.

          (c) The financial statements delivered to the Lenders pursuant to Sections 5.05(a) and
5.05(b), if any, (i) have been prepared in accordance with GAAP (except as may

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otherwise be permitted under Sections 5.05(a) and 5.05(b)) and (ii) present fairly (on the
basis disclosed in the footnotes to such financial statements, if any) in all material respects the
consolidated financial condition, results of operations and cash flows of the Borrower and its
consolidated Subsidiaries as of the respective dates thereof and for the respective periods covered
thereby.

          SECTION 3.06. No Material Adverse Effect. Since December 31, 2007, there has been no
event, development or circumstance that has had or could reasonably be expected to have a Material
Adverse Effect.

          SECTION 3.07. Title to Properties; Possession Under Leases. (a) The Borrower and the
other Loan Parties have good and marketable fee simple title to, valid leasehold interests in, or a
license or other right to use, all their respective real property assets that are included in the
Collateral including all of the real property listed on Schedule 3.20 and all of the
Mortgaged Property listed on Schedule 3.07, and including valid rights, title and interests
in or rights to control or occupy easements or rights of way used in connection with such
properties and assets (“Easements”), free and clear of all Liens or other exceptions to
title other than Liens expressly permitted by clauses (a), (f) and (g) of Section 6.02.

          (b) Except as set forth in Schedule 3.20 or where the failure to do so could not
reasonably be expected to result in a Material Adverse Effect, (i) each of the Loan Parties has
complied with all material obligations under all Material Leases to which it is a party and all
such Material Leases are in full force and effect and (ii) each of the Loan Parties enjoys peaceful
and undisturbed possession under all such Material Leases.

          (c) Except as set forth in Schedule 3.07, none of the Borrower or any of the other
Loan Parties has received any notice of, nor has any knowledge of, any pending or contemplated
condemnation proceeding affecting the Mortgaged Properties or any sale or disposition thereof in
lieu of condemnation as of the Funds Availability Date which would reasonably be expected to have a
Material Adverse Effect.

          (d) Except as set forth on Schedule 3.07, as of the Funds Availability Date, none of
the Borrower or any of the Subsidiaries is obligated under any right of first refusal, option or
other contractual right to sell, assign or otherwise dispose of any Mortgaged Property or any
interest therein.

          (e) Except with respect to (i) any Recovery Event for which a Reinvestment Commitment
Reduction Date shall have not yet occurred and (ii) those events occurring after the Funds
Availability Date that have been disclosed to the Collateral Agent, no material portion of any
Mortgaged Property has suffered any damage by fire or other casualty that has not been repaired and
restored to its original condition. With respect to each Mortgaged Property, the Borrower has
obtained and is maintaining in full force and effect flood insurance in compliance with Section
5.03.

          SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth as of the Funds
Availability Date a list of all Subsidiaries, including each Subsidiary’s exact legal name (as
reflected in such Subsidiary’s certificate or articles of incorporation or other constitutive
documents) and jurisdiction of incorporation or formation and the percentage ownership interest of
the Borrower (direct or indirect) therein, and identifies each Subsidiary that is a Loan Party. On
the Funds Availability Date, all of the Subsidiaries of the Borrower are Restricted

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Subsidiaries, except as set forth on Schedule 3.08 hereto. As of the Funds
Availability Date, the shares of Capital Stock or other Equity Interests so indicated on
Schedule 3.08 are owned by the Borrower, directly or indirectly, free and clear of all
Liens (other than Liens created under the Security Documents and, in the case of Equity Interests
(other than Pledged Securities), Permitted Liens, and in respect of Pledged Securities, the
Permitted Liens set forth in clause (e) of the definition thereof) and all such shares of capital
stock are fully paid, and to the extent issued by a corporation, non-assessable.

          SECTION 3.09. Litigation; Compliance with Laws. (a) Except as set forth on
Schedule 3.09(a) (Funding), there are no actions, suits, investigations or proceedings at
law or in equity or by or before any arbitrator or Governmental Authority now pending or, to the
knowledge of the Borrower, threatened against the Borrower or any Subsidiary or any business,
property or material rights of the Borrower or any Subsidiary (i) that, as of the Funds
Availability Date, involve any Transaction Document or the Transactions or, at any time thereafter,
involve any Transaction Document or the Transactions and which could reasonably be expected to be
material and adverse to the interests of the Lenders, or (ii) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined, could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect.

          (b) Except as set forth on Schedule 3.09(b) (Funding), none of the Borrower or any of
the Restricted Subsidiaries or any of their respective material properties or assets is in
violation of any law, rule or regulation (including any zoning, building, ordinance, code or
approval or any building permits), or is in default with respect to any judgment, writ, injunction,
decree or order of any Governmental Authority, where such violation or default, individually or in
the aggregate, could reasonably be expected to result in a Material Adverse Effect (but not
including, in each case, any Environmental Law which is the subject of Section 3.17 or any energy
regulation matter which is the subject of Section 3.23).

          (c) The Borrower and all of its Subsidiaries are in possession of all Permits necessary to
own, lease and operate their properties and to lawfully carry on their businesses as they are now
being conducted, except where the failure to be in possession of such Permit would not,
individually or in the aggregate, have a Material Adverse Effect (but not including Permits
required under applicable Environmental Laws which are the subject of Section 3.17). There is no
action, proceeding or investigation pending or, to the knowledge of the Borrower and each of its
Subsidiaries, threatened regarding any material Permit which would have a Material Adverse Effect.
None of the Borrower or any of its Subsidiaries is in material conflict with, or in default of, or
in material violation of, any material Permit.

          SECTION 3.10. Contractual Obligations. (a) None of the Borrower or any of the
Subsidiaries is in default under any provision of any Contractual Obligations in respect of
Indebtedness, or any other material Contractual Obligations to which it is a party or by which it
or any of its properties or assets are or may be bound, where such default, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

          (b) No Key Contract contains any restriction on the pledge, collateral assignment or transfer
of such Key Contract to the Collateral Agent for the benefit of the Senior Secured Parties, and
there are no restrictions in any Key Contract that would prevent the Collateral Agent or its
designee from enforcing such Key Contract following an exercise of remedies as contemplated in
Section 7.03 of this Agreement or as provided in any Security Document.

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     SECTION 3.11. Federal Reserve Regulations. (a) None of the Borrower or any of the
Subsidiaries is engaged principally, or as one of its material activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock. Neither the Borrower nor any
of its Subsidiaries owns any Margin Stock.

          (b) No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, for purchasing or carrying
Margin Stock or for the purpose of purchasing, carrying or trading in any securities under such
circumstances as to involve the Borrower in a violation of Regulation X or to involve any broker or
dealer in a violation of Regulation T. No Indebtedness being reduced or retired out of the
proceeds of any Loans or Letters of Credit was or will be incurred for the purpose of purchasing or
carrying any Margin Stock. None of the Transactions (including as contemplated by this Agreement)
will violate or result in the violation of any of the provisions of the Regulations of the Board,
including Regulation T, Regulation U or Regulation X. If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1
referred to in Regulation U.

          SECTION 3.12. Investment Company Act. Neither the Borrower nor any of its
Subsidiaries is subject to regulation under the Investment Company Act of 1940, as amended from
time to time (the “Investment Company Act”). Neither the Borrower nor any of its
Subsidiaries is subject to regulation under any other federal or state statute or rule that may
limit its ability to incur Indebtedness under this Agreement or that may otherwise render all or
any portion of the Secured Obligations unenforceable, or to the extent that the Borrower or any of
its Subsidiaries is subject to such regulation, it has obtained all authorizations necessary for
the incurrence of Indebtedness under this Agreement and as necessary to ensure that the Secured
Obligations hereunder will not be rendered unenforceable by reason of such regulation. Neither the
Borrower nor any of its Subsidiaries is a “registered investment company” or a company “controlled”
by a “registered investment company” or a “principal underwriter” of a “registered investment
company”, as such terms are defined in the Investment Company Act.

          SECTION 3.13. Use of Proceeds. Subject to Section 6.07(a), after the Funds
Availability Date, the Borrower will use the proceeds of the Loans for the ongoing working capital
requirements, the payment of fees and expenses related to the Transactions and general corporate
purposes of the Borrower and the Subsidiaries. The Borrower will request the issuance of Letters
of Credit solely for the working capital requirements and general corporate purposes of the
Borrower, its Subsidiaries and EquaGen and its subsidiaries (solely, in the case of EquaGen, its
subsidiaries and subsidiaries of the Borrower that are not Subsidiary Guarantors, to the extent
permitted by Section 6.05(j)).

          SECTION 3.14. Tax Returns. The Borrower and each of the Subsidiaries has timely filed
or timely caused to be filed all Federal and all material state, local and foreign tax returns or
materials required to have been filed by it, and all such tax returns are correct and complete in
all material respects. The Borrower and each of the Subsidiaries has timely paid or caused to be
timely paid all Taxes due and payable by it (other than an immaterial amount of Tax) and all
assessments received by it, except Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, shall have set aside on
its books adequate reserves in accordance with GAAP and except where the failure to do so could not
reasonably be expected to result in a Material Adverse Effect. The Borrower has made adequate
provision in accordance with GAAP for all Taxes accrued and not yet due and

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payable. Except as permitted in clause (e) of the definition of “Permitted Liens”, no
Lien for Taxes has been filed (except for Taxes not yet delinquent or that are being contested in
good faith by appropriate proceedings), and to the knowledge of the Borrower and each of the
Subsidiaries based on the receipt of written notice, except as set forth on Schedule 3.14,
no claim is being asserted with respect to any material Tax. Neither the Borrower nor any of the
Subsidiaries (a) intends to treat the Loans or any of the transactions contemplated by any Loan
Document as being a “reportable transaction” (within the meaning of Treasury Regulation
Section 1.6011-4) or (b) is aware of any facts or events that would result in such treatment.

          SECTION 3.15. Disclosure. The written information relating to the Borrower and its
Subsidiaries and the Separation (including, without limitation, the Confidential Information
Memorandum and the Registration Statement) furnished by or on behalf of the Borrower, and their
respective Affiliates to the Arrangers, Administrative Agent, Collateral Agent or any Lender in
connection with the Transactions or the negotiation of this Agreement or delivered hereunder, taken
as a whole (as modified or supplemented by other information so furnished prior to the relevant
measurement date for this representation and warranty), does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements made, in
light of the circumstances under which they were made, not misleading; provided that, with
respect to projected financial information or other forward-looking statements, the Borrower
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time; it being recognized by the Lenders that such projections are as to
future events and are not to be viewed as facts and that actual results during the period or
periods covered by any such projections may differ from the projected results and such differences
may be material.

          SECTION 3.16. Employee Benefit Plans. Except as could not reasonably be expected to
result in a Material Adverse Effect, the Borrower and each ERISA Affiliate are in compliance with
the applicable provisions of ERISA, the Tax Code and the regulations and published interpretations
thereunder with respect to the Benefit Plans and Multiemployer Plans. No ERISA Event has occurred
or is reasonably expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.17. Environmental Matters. Except as set forth in Schedule 3.17 or
except with respect to any matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect:

     (i) none of the Borrower or any of the Restricted Subsidiaries has failed to comply
with any Environmental Law or to take all actions necessary to obtain, maintain, renew and
comply with any Permit required under Environmental Law;

     (ii) none of the Borrower or any of the Restricted Subsidiaries has become a party to
any administrative or judicial proceeding, or possesses knowledge of any such proceeding
that has been threatened, that could result in the termination, revocation or modification
of any Permit required under Environmental Law;

     (iii) neither the Borrower nor any of the Restricted Subsidiaries has become subject
to any Environmental Liability with respect to any Mortgaged Property, and no Mortgaged
Property is (A) subject to any Lien imposed pursuant to Environmental Law or (B) contains
Hazardous Materials of a form or type or in a quantity or location that could reasonably be
expected to result in the imposition of such Lien;

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     (iv) there has been no Release of Hazardous Materials at any property or facility
currently or formerly owned or operated by the Borrower or any of the Restricted
Subsidiaries or, to the knowledge of the Borrower or the Restricted Subsidiaries, at any
facility owned or operated by a third party to which any of the Borrower or any of the
Restricted Subsidiaries shipped or transferred Hazardous Materials for treatment or
disposal;

     (v) none of the Borrower or any of the Restricted Subsidiaries has received written
notice of any claim or threatened claim with respect to any Environmental Liability other
than those which have been fully and finally resolved and for which no obligations remain
outstanding; and

     (vi) none of the Borrower or any of the Restricted Subsidiaries possesses knowledge of
any facts or circumstances that could reasonably be expected to result in any Environmental
Liability or could reasonably be expected to materially interfere with or prevent continued
material compliance with Environmental Laws in effect as of the Funds Availability Date and
the date of each Credit Event by the Borrower or the Subsidiaries.

          SECTION 3.18. Insurance. Schedule 3.18 sets forth a true, complete and
correct description of all material insurance coverage maintained by or on behalf of the Borrower
and the Restricted Subsidiaries as of the Funds Availability Date. As of the Funds Availability
Date, such insurance is in full force and effect and all premiums that are due and owed have been
duly paid. The Borrower and the Restricted Subsidiaries are in compliance with Section 5.03.
Insurance coverage maintained for the Nuclear Stations complies in all material respects with
applicable Nuclear Laws and the requirements of the licenses held by the Nuclear Stations.

          SECTION 3.19. Security Documents. (a) The Guarantee and Collateral Agreement is
effective to create in favor of the Collateral Agent, for the ratable benefit of the Senior Secured
Parties, a legal, valid, binding and enforceable security interest in the Collateral described
therein and proceeds thereof, subject to applicable insolvency, bankruptcy, reorganization,
moratorium, fraudulent transfer and other laws now or hereafter in effect generally affecting
rights of creditors and (including with respect to specific performance) principles of equity,
whether considered in a proceeding in equity or in law and to the discretion of the court before
which any proceeding therefor may be brought, and (i) in the case of the Pledged Securities, upon
the earlier of (A) when such Pledged Securities are delivered to the Collateral Agent and (B) when
financing statements in appropriate form are filed in the offices specified on Schedule
3.19(a); (ii) in the case of Deposit Accounts not constituting Excluded Perfection Assets, by
the execution and delivery of Control Agreements providing for “control” as described in
Section 9-104 of the UCC; (iii) in the case of Securities Accounts not constituting Excluded
Perfection Assets, upon the earlier of (A) the filing of financing statements in the offices
specified on Schedule 3.19(a) and (B) the execution and delivery of Control Agreements
providing for “control” as described in Section 9-106 of the UCC; and (iv) in the case of
all other Collateral described therein (other than Mortgaged Properties, Excluded Perfection
Assets, Intellectual Property Collateral, money not credited to a Deposit Account or letter of
credit rights not constituting supporting obligations), when financing statements in appropriate
form are filed in the offices specified on Schedule 3.19(a), the Guarantee and Collateral
Agreement shall constitute a fully perfected Lien on, all right, title and interest of the Senior
Secured Parties in such Collateral and proceeds thereof, as security for the Secured Obligations
arising hereunder, in each case prior and superior to the rights of any other Person (except, in
the case of all Collateral

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other than Pledged Securities, with respect to Permitted Liens, and in respect of Pledged
Securities, the Permitted Liens set forth in clause (e) of Section 6.02).

          (b) Each Intellectual Property Security Agreement is effective to create in favor of the
Collateral Agent, for the ratable benefit of the Senior Secured Parties, a legal, valid, binding
and enforceable security interest in the Intellectual Property Collateral described therein and
proceeds thereof, subject to applicable insolvency, bankruptcy, reorganization, moratorium,
fraudulent transfer and other laws now or hereafter in effect generally affecting rights of
creditors and (including with respect to specific performance) principles of equity, whether
considered in a proceeding in equity or in law and to the discretion of the court before which any
proceeding therefor may be brought. When each Intellectual Property Security Agreement is filed in
the United States Patent and Trademark Office and the United States Copyright Office, respectively,
together with financing statements in appropriate form filed in the offices specified in
Schedule 3.19(a), in each case within the time period prescribed by Applicable Law, such
Intellectual Property Security Agreement shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the grantors thereunder in the Intellectual Property
Collateral, as security for the Secured Obligations arising hereunder, in each case prior and
superior in right to any other Person (except with respect to Permitted Liens) (it being understood
that subsequent recordings in the United States Patent and Trademark Office and the United States
Copyright Office may be necessary to perfect a Lien on registered trademarks, trademark
applications, patents, patent applications and registered copyrights acquired by the grantors after
the Funds Availability Date and additional filings and/or other actions may be necessary to perfect
the Collateral Agent’s security interest in Intellectual Property Collateral that is created under
the laws of a jurisdiction outside the United States. Any such additional filings and/or other
actions that may be necessary to perfect the Collateral Agent’s security interest in registrations
and applications for registration of Intellectual Property (as defined in the Guarantee and
Collateral Agreement) included in the Intellectual Property Collateral that is created under the
laws of a jurisdiction outside the United States shall be described in writing to the Collateral
Agent and its legal counsel by the Borrower or its legal counsel).

          (c) Each of the Mortgages is effective to create in favor of the Collateral Agent, for the
ratable benefit of the Senior Secured Parties, a legal, valid, binding, subsisting and enforceable
Lien on, and security interest in, all of the Loan Parties’ right, title and interest in and to the
Mortgaged Property thereunder and proceeds thereof, subject to applicable insolvency, bankruptcy,
reorganization, moratorium, fraudulent transfer and other laws now or hereafter in effect generally
affecting rights of creditors and (including with respect to specific performance) principles of
equity, whether considered in a proceeding in equity or in law, and to the discretion of the court
before which any proceeding therefor may be brought, and when the Mortgages are recorded in the
offices specified on Schedule 3.19(c), each such Mortgage shall constitute a fully
perfected Lien on, and security interest in, all right, title and interest of the grantors thereof
in such Mortgaged Property and proceeds thereof, as security for the Secured Obligations hereunder,
in each case prior and superior in right to any other Person (except Liens expressly permitted by
clause (a), (f) and (g) of Section 6.02.

          SECTION 3.20. Location of Real Property. Schedule 3.20 lists completely and
correctly as of the Funds Availability Date all real property owned or subject to a Material Lease
by the Borrower and the other Loan Parties and, in each case, the addresses thereof, indicating for
each parcel whether it is owned or leased.

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          SECTION 3.21. Labor Matters. As of the Funds Availability Date, (i) there are no
strikes, lockouts or slowdowns against the Borrower or any Subsidiary pending or, to the knowledge
of the Borrower, threatened; (ii) the hours worked by and payments made to employees of the
Borrower and the Subsidiaries have not been in violation of the Fair Labor Standards Act or any
other applicable Federal, state, material local or material foreign law applicable to such matters
in any material respect; and (iii) all payments due from the Borrower or any Subsidiary, or for
which any claim may be made against the Borrower or any Subsidiary, on account of wages and
employee health and welfare insurance and other benefits, have been paid or accrued as a liability
on the books of the Borrower or such Subsidiary, except with respect to clauses (i) through (iii)
as could not reasonably be expected to have a Material Adverse Effect. The consummation of the
Transactions will not give rise to any right of termination or right of renegotiation on the part
of any union under any collective bargaining agreement to which the Borrower or any Subsidiary is
bound.

          SECTION 3.22. Intellectual Property. Except as could not reasonably be expected to
result in a Material Adverse Effect, the Borrower and each of the Subsidiaries owns, or is licensed
or otherwise has the right to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the Borrower and the
Subsidiaries does not infringe upon the rights of any other Person.

          SECTION 3.23. Energy Regulation. (a) Immediately following the Separation and
thereafter the Borrower and any Restricted Subsidiary that is a holding company as such term is
defined in PUHCA is exempt in accordance with 18 CFR § 366.3 from the accounting, record-retention
and reporting requirements of PUHCA.

          (b) The Borrower is not subject to regulation as a “public utility” as such term is
defined in the FPA. Each Restricted Subsidiary that is subject to regulation as a “public
utility” as such term is defined in the FPA and that makes sales of energy or capacity that are
not pursuant to a state regulatory authority’s implementation of PURPA has an order from the FERC,
which order is not subject to any pending challenge, investigation, complaint, or other proceeding,
except as could not reasonably be expected to result in a Material Adverse Effect and other than
generic proceedings generally applicable in the industry, (x) authorizing such Restricted
Subsidiary to engage in wholesale sales of electricity and, to the extent permitted under its
market-based rate tariff, other transactions at market-based rates and (y) granting such waivers
and blanket authorizations as are customarily granted to entities with market-based rate authority,
including blanket authorizations to issue securities and to assume liabilities pursuant to Section
204 of the FPA. With respect to each Restricted Subsidiary described in the preceding sentence,
except as could not reasonably be expected to result in a Material Adverse Effect and except as set
forth on Schedule 3.23(b), the FERC has not imposed any rate caps, mitigation measures, or
other limits on market-based sales of power by that Restricted Subsidiary, other than rate caps and
mitigation measures generally applicable to similarly situated marketers or generators selling
electricity, ancillary services or other services at wholesale at market-based rates in the
geographic market where such Restricted Subsidiary conducts its business.

          (c) Each Restricted Subsidiary of the Borrower participating in the wholesale power market in
state or regional transmission organizations has registered with the relevant state or regional
body to sell electricity at wholesale at market-based rates, and, except as could not reasonably be
expected to result in a Material Adverse Effect, such state or regional body has not imposed any
specific rate cap or mitigation measure (other than pursuant to generic

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proceedings generally applicable in the industry). The rates charged by each such Restricted
Subsidiary are not subject to any pending challenge or investigation.

          (d) Except as could not reasonably be expected to result in a Material Adverse Effect and
except as set forth on Schedule 3.23(d), there are no complaint proceedings pending with
the FERC, any other Governmental Authority or any state or regional transmission organizations
seeking abrogation or modification, or otherwise investigating the terms, of a contract for the
sale of power by Borrower or its Restricted Subsidiaries.

          (e) Except as could not reasonably be expected to result in a Material Adverse Effect, (i)
each of the Borrower and each Restricted Subsidiary, as applicable, has filed or caused to be filed
with the FERC, all other relevant Governmental Authorities and any state or regional transmission
organizations all forms, applications, notices, statements, reports and documents (including all
exhibits and amendments thereto) required to be filed by it under all Applicable Laws, including
PUHCA, the FPA and state utility laws and the respective rules thereunder and (ii) all of such
filings complied with the applicable requirements of the appropriate act and rules, regulations and
orders thereunder in effect on the date each was filed.

          (f) Each power facility identified as a “QF” in Schedule 3.23(f) is a qualifying
facility under PURPA and the current rules and regulations promulgated thereunder. Each person
identified as an “EWG” in Schedule 3.23(f) is an “exempt wholesale generator” within the
meaning of PUHCA and the Energy Policy Act of 2005, as amended. None of the Restricted
Subsidiaries is a “foreign utility company” within the meaning of PUHCA.

          (g) Neither the Borrower nor any Restricted Subsidiary is subject to any material state laws
or material regulations respecting rates or the financial or organizational regulation of
utilities, other than (i) with respect to those Restricted Subsidiaries that are QFs, such state
regulations contemplated by 18 C.F.R. Section 292.602(c) and (ii) “lightened regulation” by
the New York State Public Service Commission and material financial and organizational regulation
by the Vermont Public Service Board. Except for such approvals that have been obtained, no
approval is required to be obtained in connection with the Transactions from the FERC or any other
state or federal Governmental Authority with jurisdiction over the energy sales or financing
arrangements of the Borrower and its Restricted Subsidiaries.

          SECTION 3.24. Solvency. Immediately after the consummation of the Transactions on the
Funds Availability Date, and to the extent a Credit Event is being made, immediately following such
Credit Event and the application of the proceeds therefrom, (a) the fair value of the assets of the
Loan Parties, taken as a whole, at a fair valuation, taking into account the effect of any
indemnities, contribution or subrogation rights, exceeds their debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of the Loan Parties,
taken as a whole, taking into account the effect of any indemnities, contribution or subrogation
rights, is greater than the amount required to pay the probable liability of their debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (c) the Loan Parties, taken as a whole, are able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute
and matured; and (d) the Loan Parties, taken as a whole, do not have unreasonably small capital
with which to conduct the business in which they are engaged as such business is conducted and is
proposed to be conducted following the Funds Availability Date.

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          SECTION 3.25. Nuclear Operations Compliance. The operations of the Restricted
Subsidiaries’ nuclear steam generating stations (“Nuclear Stations”) are and have at all
times been conducted in material compliance with Nuclear Laws. No investigation or review by any
Governmental Authority with respect to the Nuclear Stations is pending or, to the knowledge of the
Borrower or the Restricted Subsidiaries, is threatened, nor has any Governmental Authority
indicated in writing an intention to conduct the same, other than those the outcome of which would
not have a Material Adverse Effect. The Nuclear Stations maintain emergency plans designed to
respond to an unplanned release therefrom of Nuclear Materials into the environment, liability
insurance to the extent required by Applicable Law (including, but not limited to, the
Price-Anderson Act), and such further insurance as is consistent with the risks inherent in the
operation of a nuclear power facility. Plans for the decommissioning of each of the Nuclear
Stations and for the short-term storage of spent nuclear fuel conform in all material respects with
applicable regulatory or other legal requirements. The Borrower and its Restricted Subsidiaries
have established and have adequately maintained trust funds or other financial mechanisms to
provide for decontamination and decommissioning of each Nuclear Station in accordance with
Applicable Law. Borrower and its Subsidiaries have made all contributions required by Applicable
Laws to pay the U.S. Department of Energy for decontamination and decommissioning of federal
uranium enrichment facilities and for long-term disposition of spent fuel.

          SECTION 3.26. Separation Transactions. As of the Funds Availability Date:

     (a) The Separation Transactions have been consummated in all material respects in
accordance with each of the Separation Documents and substantially in the manner described
in the Registration Statement.

     (b) Each of the Separation Documents has been duly executed and delivered by each Loan
Party thereto and constitutes a legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject
to general principles of equity, regardless of whether considered in a proceeding in equity
or at law.

     (c) None of the Separation Documents has been amended, waived or otherwise modified
from the form of the drafts attached hereto as Exhibit R and
Exhibit S, respectively, in a way that is materially adverse to the Lenders
without the prior consent of the Arrangers and the Required Lenders and no condition
precedent therein to the obligations of the Borrower waived, altered, amended or otherwise
changed or supplemented, in each case in a manner materially adverse to the interests of
the Lenders, without the prior written consent of the Arrangers and the Required Lenders.

          SECTION 3.27. Segregation of Cash Management and Business Operations. The Borrower
and its Restricted Subsidiaries have at all times following consummation of the Separation
Transactions (i) maintained books, financial records and bank accounts that are separate and
distinct from the books, financial records and bank accounts of Entergy and its subsidiaries, (ii)
held themselves out as an entity separate and distinct from Entergy and any of its subsidiaries
(including their Affiliates), (iii) conducted their own business in their own name, (iv) held all
of their assets in their own name and (v) not identified itself as a division or department of
Entergy or any of its subsidiaries.

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          SECTION 3.28. Patriot Act. To the extent applicable, each Loan Party is in
compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended, and each
of the foreign assets control regulations of the Untied States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, and (ii) the Patriot Act. No part of the proceeds of the Loans will be used, directly or
indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended.

ARTICLE IV

Conditions Precedent

     The obligations of the Lenders and the obligations of the Issuers hereunder are subject to the
satisfaction (or waiver in accordance with Section 9.08) of the following conditions:

          SECTION 4.01. All Credit Events. On the date of each Borrowing on or after the Funds
Availability Date and on the date of each issuance, amendment, extension or renewal of a Letter of
Credit on or after the Funds Availability Date (each such event being called a “Credit
Event”):

     (a) Borrowing Request. The Administrative Agent shall have received a
Borrowing Request in respect of such Borrowing as required by Section 2.02 (or such notice
shall have been deemed given in accordance with Section 2.02) or, in the case of the
issuance, amendment, extension or renewal of a Letter of Credit, the applicable Issuer and
the Administrative Agent shall have received a notice requesting the issuance, amendment,
extension or renewal of such Letter of Credit if and as required by Section 2.03;

     (b) Representations and Warranties. The representations and warranties set
forth in each Loan Document shall be true and correct in all material respects (except to
the extent that such representations and warranties are qualified as to materiality, in
which case they shall be true and correct in all respects) on and as of the date of such
Credit Event with the same effect as though made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall be true and correct in all material respects
(or true and correct in all respects, as provided in the parenthetical above) on and as of
such earlier date;

     (c) No Material Adverse Effect. There shall have been no event, development
or circumstance that has had or could reasonably be expected to have a Material Adverse
Effect since December 31, 2007;

     (d) No Default or Event of Default. The Borrower and each Restricted
Subsidiary shall be in compliance with all the terms and provisions set forth in each Loan
Document on its part to be observed or performed, and, at the time of and immediately after
such Credit Event, no Default or Event of Default shall have occurred and be continuing;

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     (e) Outstanding Amount. Immediately after giving effect to such Credit Event,
the Aggregate Revolving Credit Outstandings shall not exceed the Total Commitments at such
time; and

     (f) Posting of Cash Collateral. In the case of an Issuance of a Letter of
Credit, the Borrower has (i) posted any cash collateral required by any Issuer or (ii)
entered into some other arrangement satisfactory to such Issuer, in each case as provided
for in Section 2.03(g).

          Each Credit Event shall be deemed to constitute a representation and warranty by the Borrower
on the date of such Credit Event as to the matters specified in paragraphs (b), (c), (d), (e) and
(f) of this Section 4.01.

          SECTION 4.02. Conditions Precedent to Signing Date. On the Signing Date:

          (a) Deliverables. The Arrangers’ receipt of the following, each of which shall be
originals, telecopies or PDF files (followed promptly by originals) unless otherwise specified,
each executed (as applicable) by a Responsible Officer of the signing Loan Party, each dated the
Signing Date (or, in the case of certificates of governmental officials, a recent date before the
Signing Date) and each in form and substance reasonably satisfactory to the Arrangers and the
Collateral Agent:

     (i) executed counterparts of this Agreement in sufficient quantity for the
Administrative Agent, each Arranger and each Lender requesting original counterparts;

     (ii) completed schedules to this Agreement as of the Signing Date in form reasonably
satisfactory to the Arrangers and each Lender;

     (iii) exhibits to this Agreement in form satisfactory to the Arrangers and each
Lender;

     (iv) executed counterparts of the Intercreditor Agreement in sufficient quantity for
the Administrative Agent, the Collateral Agent, and the Borrower;

     (v) a copy of the Constituent Documents of the Borrower as of the Signing Date,
including all amendments thereto as of the Signing Date (and each certificate of
incorporation, formation or limited partnership shall be certified as of a recent date by
the Secretary of State or other applicable Governmental Authority of its respective
jurisdiction of organization), together with:

     (A) a certificate as to the good standing of the Borrower, as of a recent
date, from the Secretary of State or other applicable authority of its jurisdiction
of organization and from each other jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such qualification,
together in each case with a certificate or other evidence of good standing as to
payment of any applicable franchise or similar Taxes from the appropriate taxing
authority of each such jurisdiction;

     (B) a certificate of the Secretary or Assistant Secretary of the Borrower
dated the Signing Date and certifying (1) that the Constituent

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Documents of the Borrower have not been amended since the date of the last
amendment thereto shown on the certificate of good standing from its jurisdiction
of organization furnished pursuant to clause (A) above; (2) that attached thereto
is a true and complete copy of the agreement of limited partnership, operating
agreement or by-laws as in effect on the Signing Date and at all times since a date
prior to the date of the resolutions described in clause (3) below; (3) that
attached thereto is a true and complete copy of resolutions duly adopted by the
board of directors or other governing body of the Borrower authorizing the
execution, delivery and performance of this Agreement, the Intercreditor Agreement
and each other Loan Document to which it is a party on the Signing Date and that
such resolutions have not been modified, rescinded or amended and are in full force
and effect; and (4) as to the incumbency and specimen signature of each officer
executing any Loan Document or any other document delivered in connection herewith
on behalf of the Borrower; and

     (C) a certificate of another officer as to the incumbency and specimen
signature of the Secretary or Assistant Secretary executing the certificate
pursuant to clause (B) above;

     (vi) a favorable written opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel
to the Loan Parties, addressed to the Arrangers, the Administrative Agent, the Collateral
Agent and each Lender, dated the Signing Date, substantially in the form of Exhibit
I-1-A hereto and covering such additional matters incident to the transactions
contemplated hereby as the Arrangers or the Required Lenders may reasonably request,
together with a favorable written opinion of an internal counsel to the Borrower with
respect to Section 3.09(a), addressed to the Arrangers, the Administrative Agent, the
Collateral Agent and each Lender, dated the Signing Date, substantially in the form of
Exhibit I-1-B hereto;

     (vii) a certificate signed by a Responsible Officer of the Borrower certifying that
the conditions specified in this Section 4.02 have been satisfied; and

     (viii) such other certificates or documents as the Arrangers, the Issuers or the
Collateral Agent may have reasonably required not less than three days before the Signing
Date.

          (b) Certain Fees. All fees required to be paid on or before the Signing Date to the
Administrative Agent, the Arrangers and to the Lenders shall, in each case, have been paid.

          (c) Counsel Fees. The Borrower shall have paid all reasonable, documented,
out-of-pocket fees, charges and disbursements of (i) counsel to the Arrangers (directly to such
counsel if requested by them) to the extent invoiced at least seven Business Day prior to the
Signing Date and (ii) counsel to the Administrative Agent, plus such additional amounts of such
fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the Signing Date (provided that such
estimate shall not thereafter preclude a final settling of accounts between the Borrower and the
Arrangers).

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          (d) Financial Information. The Borrower has, on or prior to the Signing Date,
furnished to the Arrangers and the Administrative Agent the financial information described in
Section 1.05 of Annex III for Entergy Nuclear (as such term is defined therein).

          (e) Patriot Act Information. The Administrative Agent and the Arrangers shall have
received all information requested by itself or any Lender of the type described in Section 9.18
hereof that is required for it to comply with its ongoing obligations under applicable “know your
customer”, and anti-money laundering rules and regulations, including the Patriot Act.

          (f) Delivery of Reports. The Administrative Agent and the Arrangers shall have
received copies of the final independent engineering, insurance and market consultants’ reports
prepared by a consultant reasonably acceptable to the Arrangers and in a form and scope
satisfactory to the Arrangers.

          (g) Representations and Warranties. The representations and warranties set forth in
Annex III and in each other Loan Document executed on the Signing Date shall be true and
correct in all material respects (except to the extent that such representations and warranties are
qualified as to materiality, in which case they shall be true and correct in all respects) on and
as of the Signing Date, except to the extent such representations and warranties expressly relate
to an earlier date, in which case such representations and warranties shall be true and correct in
all material respects (or true and correct in all respects, as provided in the parenthetical above)
on and as of such earlier date.

          (h) No Material Adverse Effect. There shall have been no event, development or
circumstance that has had or could reasonably be expected to have a Material Adverse Effect since
December 31, 2007.

          (i) No Default or Event of Default. The Borrower and, to the extent there are any on
the Signing Date, each Restricted Subsidiary, shall be in compliance with all the terms and
provisions set forth in each Loan Document on its part to be observed or performed, and, on and as
of the Signing Date, no Default or Event of Default shall have occurred and be continuing.

          (j) Date. The Signing Date shall have occurred on or before December 31, 2008.

          For purposes of determining compliance with the conditions specified in this Section 4.02,
each Lender that has executed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Lender.

          SECTION 4.03. Conditions Precedent to Funds Availability Date. On the Funds
Availability Date:

     (a) Deliverables. The Arrangers’ receipt of the following, each of which
shall be originals, telecopies or PDF files (followed promptly by originals) unless
otherwise specified, each executed (as applicable) by a Responsible Officer of the signing
Loan Party, each dated the Funds Availability Date (or, in the case of certificates of
governmental officials, a recent date before the Funds Availability Date) and each in form
and substance reasonably satisfactory to the Arrangers:

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     (i) any modifications or updates to any schedule to this Agreement (other than
Schedules 3.09(a) (Signing), 3.09(b) (Signing), 6.01(c) (Signing) and 6.02(d) (Signing),
which shall not be modified or updated) made since the Signing Date, in form reasonably
satisfactory to the Arrangers and each Lender;

     (ii) a Note executed by the Borrower in favor of each Lender that has requested such
Note at least three Business Days in advance of the Funds Availability Date;

     (iii) an executed Guarantee Joinder and Assumption Agreement in respect of the
Intercreditor Agreement for each Subsidiary Guarantor;

     (iv) an executed Accession Agreement to the Intercreditor Agreement for each Secured
Obligations Representative that will be party to the Guarantee and Collateral Agreement
(other than the Administrative Agent) on the Funds Availability Date (if any);

     (v) executed counterparts of the Guarantee and Collateral Agreement, duly executed by
each Loan Party that is a party thereto, together with:

     (A) a duly executed Perfection Certificate;

     (B) a Corporate Chart current as of the Funds Availability Date;

     (C) appropriate Form UCC-1 financing statements authorized for filing under
the UCC of each jurisdiction in which the filing of a financing statement or giving
of notice may be required, or reasonably requested by the Collateral Agent, to
perfect the security interests intended to be created by the Security Documents;

     (D) upon the written request of the Arrangers searches of ownership of
intellectual property in the appropriate governmental offices and such patent,
trademark and/or copyright filings as may be requested by the Collateral Agent to
the extent necessary or reasonably advisable to perfect the Collateral Agent’s
security interest in intellectual property Collateral;

     (E) all of the Pledged Securities, which Pledged Securities shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment in blank, with signatures appropriately
guaranteed, accompanied in each case by any required transfer tax stamps, all in
form and substance reasonably satisfactory to the Collateral Agent;

     (F) all Deposit Account Control Agreements, duly executed by the corresponding
Deposit Account Bank and Loan Party, that, in the reasonable judgment of the
Arrangers, shall be required for the Loan Parties to comply with Sections 5.10 and
5.11;

     (G) Securities Account Control Agreements duly executed by the appropriate
Loan Party and all “securities intermediaries” (as defined in the

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UCC) with respect to all Securities Accounts and securities entitlements of
each Loan Party;

     (H) Commodities Account Control Agreements duly executed by the appropriate
Loan Party and all “commodities intermediaries” (as defined in the UCC) with
respect to all commodities contracts and Commodities Accounts held by each Loan
Party; and

     (I) evidence of the completion of all other filings and recordings of or with
respect to the Security Documents and of all other actions as may be necessary or,
in the opinion of the Collateral Agent, desirable to perfect the security interests
intended to be created by the Security Documents;

     (vi) one or more Intellectual Property Security Agreements, as applicable, duly
executed by each Loan Party to the extent required by the Guarantee and Collateral
Agreement;

     (vii) fully executed and notarized Mortgages encumbering the fee interest of the Loan
Parties in each real property asset owned by a Loan Party identified to be a Mortgaged
Property on or prior to the Funds Availability Date on Schedule 3.07, substantially
in the form of Exhibits P-1, P-2 and P-3, with such changes, if
any, as are reasonably satisfactory to the Borrower (which shall be evidenced by the
signature thereof by the applicable Loan Party) and the Collateral Agent, together with
such UCC-1 financing statements or similar notices as the Collateral Agent shall reasonably
deem appropriate with respect to each such Mortgaged Property, together with:

     (A) evidence that counterparts of the Mortgages have been duly executed,
acknowledged and delivered to the title insurance company for filing and
recordation in suitable form in all filing or recording offices that the Collateral
Agent may deem necessary or desirable in order to create a valid first and
subsisting Lien on the property described therein in favor of the Collateral Agent
for the benefit of the Senior Secured Parties and that provision has been made for
the payment of all filing, documentary, stamp, intangible and recording Taxes and
fees;

     (B) fully paid American Land Title Association Lender’s Extended Coverage
title insurance policies (the “Mortgage Policies”) in form and substance,
with endorsements and in amounts, reasonably acceptable to the Collateral Agent,
issued by title insurers acceptable to the Collateral Agent, insuring the Mortgages
to be valid first and subsisting Liens on the property described therein, free and
clear of all defects (including, but not limited to, mechanics’ and material men’s
Liens) and encumbrances, excepting only clause (g) in the definition of Permitted
Liens, and providing for such other affirmative insurance (including endorsements
for future advances under the Loan Documents, for mechanics’ and material men’s
Liens) as the Collateral Agent may deem reasonably necessary or desirable;

     (C) American Land Title Association form surveys, for which all necessary fees
(where applicable) have been paid, and dated no more than 120 days before the day
of the initial Credit Event, certified to the Administrative

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Agent, the Arrangers, the Collateral Agent and the issuer of the Mortgage
Policies in a manner satisfactory to the Arrangers and the Collateral Agent by a
land surveyor duly registered and licensed in the jurisdictions in which the
property described in such surveys is located and acceptable to the Collateral
Agent, showing all buildings and other improvements, any off-site improvements, the
location of any Easements, parking spaces, rights of way, building set-back lines
and other dimensional regulations;

     (D) opinions of local counsel for the Loan Parties in states in which the
Mortgaged Properties are located with respect to the enforceability and perfection
of the Mortgages and any related fixture filings in form and substance reasonably
satisfactory to the Arrangers and the Collateral Agent;

     (E) an appraisal of all or parts of the Mortgaged Properties as designated by
the Collateral Agent that is prepared by a member of the Appraisal Institute
selected by the Collateral Agent, in form and substance acceptable to the Arrangers
and the Collateral Agent, and in compliance with the Uniform Standards of
Professional Appraisal Practice (USPAP);

     (F) a Standard Flood Hazard Determination Form (“SFHDF”) with respect
to each Mortgaged Property. To the extent that the SFHDF indicates that any of the
Mortgaged Properties is in a Special Flood Hazard Area, then adequate flood
insurance, as and to the extent required under the National Flood Insurance
Program, shall have been obtained by the Borrower in compliance with the
requirements set forth in Section 5.03, and proof of such insurance shall have been
delivered to the Collateral Agent;

     (G) evidence of the insurance required by the terms of the Mortgages;

     (H) such evidence of zoning compliance as may be required by the Arrangers or
the Collateral Agent; and

     (I) such other evidence that all other actions that the Collateral Agent may
reasonably deem necessary or desirable in order to create valid and subsisting
Liens on the Mortgaged Properties described in the Mortgages have been taken;

     (viii) a copy of the Constituent Documents, including all amendments thereto as of the
Funds Availability Date, of each Restricted Subsidiary, and, with respect to certificates
of incorporation, formation or limited partnership, certified as of a recent date by the
Secretary of State or other applicable Governmental Authority of its respective
jurisdiction of organization, together with:

     (A) a certificate as to the good standing of the Borrower and each Restricted
Subsidiary, as of a recent date, from the Secretary of State or other applicable
authority of its respective jurisdiction of organization and from each other
jurisdiction where its ownership, lease or operation of properties or the conduct
of its business requires such qualification, together in each case with a
certificate or other evidence of good standing as to payment of any applicable

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franchise or similar Taxes from the appropriate taxing authority of each such
jurisdiction;

     (B) a certificate of the Secretary or Assistant Secretary of the Borrower and
each Restricted Subsidiary dated the Funds Availability Date and certifying (1)
that the Constituent Documents (x) of the Borrower have not been amended since the
Signing Date and (y) of such Restricted Subsidiary have not been amended since the
date of the last amendment thereto shown on the certificate of good standing from
its jurisdiction of organization furnished pursuant to clause (A) above; (2) that
attached thereto is a true and complete copy of the agreement of limited
partnership, operating agreement or by-laws of the Borrower and each Restricted
Subsidiary, as in effect on the Funds Availability Date and at all times since a
date prior to the date of the resolutions described in clause (3) below, (3) that
attached thereto is a true and complete copy of resolutions duly adopted by the
board of directors or other governing body of the Borrower and each Restricted
Subsidiary authorizing the Transactions and the execution, delivery and performance
of the Transaction Documents to which it is to be a party and, in the case of the
Borrower, the borrowings hereunder, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect; and (4) as to the
incumbency and specimen signature of each officer executing any Loan Document or
any other document delivered in connection herewith on behalf of the Borrower and
each Restricted Subsidiary; and

     (C) a certificate of another officer as to the incumbency and specimen
signature of the Secretary or Assistant Secretary executing the certificate
pursuant to clause (B) above;

     (ix) a favorable written opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel
to the Loan Parties, addressed to the Arrangers, the Administrative Agent, the Collateral
Agent and each Lender, dated the Funds Availability Date, substantially in the form of
Exhibit I-2-A hereto and covering such additional matters incident to the
transactions contemplated hereby as the Arrangers or the Required Lenders may reasonably
request, together with a favorable written opinion of an internal counsel to the Borrower
with respect to Section 3.09(a), addressed to the Arrangers, the Administrative Agent, the
Collateral Agent and each Lender, dated the Funds Availability Date, substantially in the
form of Exhibit I-2-B hereto;

     (x) favorable written opinions from special Michigan, Vermont, Arkansas, New York and
Massachusetts counsel to the Borrower and the other Loan Parties (which counsel shall be
reasonably satisfactory to the Collateral Agent) to the Arrangers, the Administrative
Agent, the Collateral Agent and each Lender, dated the Funds Availability Date,
substantially in the form of Exhibit J, Exhibit K, Exhibit L
Exhibit M and Exhibit N hereto and covering such additional matters
incident to the transactions contemplated hereby as the Arrangers or the Required Lenders
may reasonably request;

     (xi) a certificate signed by a Responsible Officer of the Borrower certifying that the
conditions specified in Section 4.01 have been satisfied to the extent that any Credit
Event is requested to be made on the Funds Availability Date;

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     (xii) a certificate signed by the chief financial officer of the Borrower attesting to
the solvency on the Funds Availability Date of the Loan Parties on a consolidated basis
after giving effect to the Transactions;

     (xiii) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect, together with (i) the certificates of
insurance, naming the Collateral Agent, on behalf of the Senior Secured Parties, as an
additional insured or loss payee (as its interests may appear), as the case may be, under
all insurance policies maintained with respect to the assets and properties of the Loan
Parties that constitutes Collateral and (ii) related endorsements to such insurance
policies contemplated by Section 5.03; and

     (xiv) such other certificates or documents as the Arrangers or the Collateral Agent
may have reasonably required not less than three days before the Funds Availability Date.

          (b) Certain Fees. All fees required to be paid on or before the Funds Availability
Date (i) to the Administrative Agent and the Arrangers and (ii) to the Lenders shall in each case
have been paid.

          (c) Counsel Fees. The Borrower shall have paid all reasonable, documented
out-of-pocket fees, charges and disbursements of counsel to the Arrangers (directly to such counsel
if requested by them) and of counsel to the Administrative Agent, in each case to the extent
invoiced at least seven Business Day prior to the Funds Availability Date, plus such additional
amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such
fees, charges and disbursements incurred or to be incurred by it through the Funds Availability
Date (provided that such estimate shall not thereafter preclude a final settling of
accounts between the Borrower and the Arrangers).

          (d) Date. The Signing Date shall have occurred. The Funds Availability Date shall
have occurred on or prior to the Outside Date.

          (e) Financial Information. The Borrower shall, on or prior to the Funds Availability
Date, furnish to the Arrangers and the Administrative Agent updated projections.

          (f) Consummation of the Separation Transactions. On or prior to the Funds
Availability Date, there shall have been delivered to the Arrangers true and correct copies of the
Separation Documents, certified as such by a Responsible Officer of the Borrower. The Separation,
including all of the terms and conditions thereof, shall have been duly approved by the board of
directors and (if required by Applicable Laws) the shareholders of each of Entergy and the
Borrower, and all Separation Documents shall have been duly executed and delivered by the parties
thereto and shall be in full force and effect. The Separation Documents shall not have been
amended, waived or otherwise modified from the form of the drafts attached hereto as Exhibit
R and Exhibit S respectively, in a way that is materially adverse to the Lenders
without the prior consent of the Arrangers and no condition precedent therein to the obligations of
the Borrower waived, altered, amended or otherwise changed or supplemented, in each case in a
manner materially adverse to the interests of the Lenders, without the prior written consent of the
Arrangers. On or prior to the Funds Availability Date, the Separation shall have been consummated
in accordance with the Separation Documents and the Registration Statement and in accordance with
all Applicable Laws.

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          (g) Debt and Corporate Ratings. The Borrower shall have (i) obtained corporate
ratings and ratings for its senior secured Indebtedness from Moody’s and S&P and (ii) shall have
achieved either (A) a credit rating of no less than Ba3 by Moody’s or (B) a credit rating of no
less than BB- by S&P.

          (h) Patriot Act Information. The Administrative Agent and the Arrangers shall have
received all information requested by itself or any Lender of the type described in Section 9.18
hereof that is required for it to comply with its ongoing obligations under applicable “know your
customer”, and anti-money laundering rules and regulations, including the Patriot Act.

          (i) Senior Note Issuance. The Borrower shall have issued Senior Notes pursuant to
Rule 144A or another exemption from the registration requirements of the Securities Act and, if
applicable, any Funds Availability Indebtedness, in a combined aggregate principal amount of not
less than $4,000,000,000; provided that at least $3,000,000,000 of such aggregate principal
amount shall constitute Indebtedness in respect of the Senior Notes. The Borrower shall cause a
Responsible Officer to deliver a certificate to the Arrangers attaching true and correct copies of
the Senior Note Documents and, if applicable, the Funds Availability Indebtedness Documents, as in
effect on the Funds Availability Date.

          (j) Pro Forma Financial Covenant Compliance. The Borrower shall have delivered to the
Arrangers satisfactory evidence that the Borrower and its Restricted Subsidiaries are in pro forma
compliance with the Financial Covenants on and as of the Funds Availability Date, including after
giving effect to any Credit Event requested to be made on the Funds Availability Date.

          (k) Representations and Warranties. The representations and warranties set forth in
Article III of this Agreement and in each other Loan Document shall be true and correct in all
material respects (except to the extent that such representations and warranties are qualified as
to materiality, in which case they shall be true and correct in all respects) on and as of the
Funds Availability Date, except to the extent such representations and warranties expressly relate
to an earlier date, in which case such representations and warranties shall be true and correct in
all material respects (or true and correct in all respects, as provided in the parenthetical above)
on and as of such earlier date.

          (l) No Material Adverse Effect. There shall have been no event, development or
circumstance that has had or could reasonably be expected to have a Material Adverse Effect since
December 31, 2007.

          (m) No Default or Event of Default. The Borrower and each Restricted Subsidiary shall
be in compliance with all the terms and provisions set forth in each Loan Document on its part to
be observed or performed, and, on and as of the Funds Availability Date, no Default or Event of
Default shall have occurred and be continuing.

          (n) Appraisals. The Borrower shall have delivered the Funds Availability Date
Appraisals.

     For purposes of determining compliance with the conditions specified in this Section 4.03,
each Lender that has executed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder

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to be consented to or approved by or acceptable or satisfactory to a Lender unless the
Arrangers shall have received notice from such Lender prior to the closing on the Funds
Availability Date specifying its objection thereto.

ARTICLE V

Affirmative Covenants

     The Borrower covenants and agrees with each Lender that, (i) from and after the Signing Date,
so long as this Agreement shall remain in effect and until the earlier of (A) the Funds
Availability Date and (B) the Outside Date, the Borrower will, and will cause each of the
Restricted Subsidiaries to comply with the affirmative covenants set forth in Annex V and
(ii) from and after the Funds Availability Date, so long as this Agreement shall remain in effect
and until the Commitments have been terminated and the principal of and interest on each Loan, all
fees and all other expenses or amounts payable under any Loan Document (other than indemnification
and other contingent obligations in each case not then due and payable) shall have been paid in
full and all Letters of Credit have been canceled or have expired and all amounts drawn thereunder
have been reimbursed in full or reimbursement thereof shall have been cash-collateralized in an
amount equal to 100% of the Letter of Credit Obligations as of such time, the Borrower will, and
will cause each of the Restricted Subsidiaries to:

          SECTION 5.01. Corporate Existence. Subject to Section 6.04 hereof, do or cause to be
done all things necessary to preserve and keep in full force and effect (a) its corporate
existence, and the corporate, partnership or other existence of each of its subsidiaries, in
accordance with the respective Constituent Documents (as the same may be amended from time to time)
of the Borrower or any such Subsidiary; and (b) the rights (charter and statutory), licenses and
franchises of the Borrower and its Subsidiaries, except where the failure to so preserve and keep
could not reasonably be expected to have a Material Adverse Effect; provided,
however, that neither the Borrower nor any Restricted Subsidiary shall be required to
preserve any such right, license or franchise, or the corporate, partnership or other existence of
itself or any of its Subsidiaries, if the Borrower or such Restricted Subsidiary shall determine
that the preservation thereof is no longer desirable in the conduct of the Permitted Businesses of
the Borrower and its Subsidiaries, taken as a whole, and that the loss thereof could not reasonably
be expected to result in a Material Adverse Effect.

          SECTION 5.02. Compliance with Laws. Comply with all Applicable Laws, Contractual
Obligations and Permits, except where the failure so to comply would not, in the aggregate, have a
Material Adverse Effect.

          SECTION 5.03. Insurance. The Borrower will, and will cause each Subsidiary that is a
Restricted Subsidiary to, at all times maintain in full force and effect, pursuant to
self-insurance arrangements or with insurance companies that the Borrower believes (in the good
faith judgment of the management of the Borrower, as applicable) are financially sound and
responsible at the time the relevant coverage is placed or renewed, insurance in at least such
amounts (after giving effect to any self-insurance which the Borrower believes (in the good faith
judgment of management of the Borrower, as applicable) is reasonable and prudent in light of the
size and nature of its business) and against at least such risks (and with such risk retentions) as
the Borrower believes (in the good faith judgment of management of the Borrower, as applicable) is
reasonable and prudent in light of the size and nature of its business; and will furnish to the
Agents, upon written reasonable request from either Agent, information presented in reasonable

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detail as to the insurance so carried. With respect to each Mortgaged Property, obtain flood
insurance in such total amount as the Agents may from time to time reasonably require, if at any
time the area in which any improvements located on any Mortgaged Property is designated a “flood
hazard area” in any Flood Insurance Rate Map published by the Federal Emergency Management Agency
(or any successor agency), and otherwise comply with the National Flood Insurance Program as set
forth in the Flood Disaster Protection Act of 1973, as amended from time to time.

          SECTION 5.04. Payment of Obligations. Pay and discharge as the same shall become due
and payable, all its obligations and liabilities, including (i) Taxes (other than an immaterial
amount of Tax), assessments, and governmental levies except such as are contested in good faith and
by appropriate proceedings and where the Borrower or the relevant Subsidiary shall have set aside
on its books adequate reserves with respect thereto in accordance with GAAP and such contest
operates to suspend collection of the contested obligation, tax, assessment or charge and
enforcement of a Lien, (ii) all lawful claims which, if unpaid, would by Applicable Laws become a
Lien upon its property other than a Permitted Lien and (iii) all Indebtedness, as and when the same
shall become due and payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness.

          SECTION 5.05. Financial Statements, Reports, etc. In the case of the Borrower,
furnish to the Administrative Agent for distribution to each Lender:

     (a) Annual Reports. As soon as available and in any event on or before the
date on which such financial statements are required to be filed with the SEC (after giving
effect to any permitted extensions) (or, if such financial statements are not required to
be filed with the SEC, on or before the date that is 90 days after the end of each fiscal
year), its consolidated balance sheet and related statements of income, stockholders’
equity and cash flows showing the financial condition as of the close of such fiscal year
of the Borrower and its consolidated Subsidiaries at such time and the results of its
operations and the operations of such consolidated Subsidiaries during such year, together
with comparative figures for the immediately preceding fiscal year (or, in the case of the
fiscal year ending December 31, 2008, the comparable twelve month period ending December
31, 2007), all audited by Deloitte & Touche LLP or other independent public accountants of
recognized national standing reasonably satisfactory to the Administrative Agent and
accompanied by an opinion of such accountants (which shall not be qualified in any material
respect) to the effect that such consolidated financial statements fairly present the
financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

     (b) Quarterly Reports. As soon as available and in any event on or before the
date on which such financial statements are required to be filed with the SEC (after giving
effect to any permitted extensions) with respect to each of the first three fiscal quarters
of each fiscal year (or, if such financial statements are not required to be filed with the
SEC, on or before the date that is 45 days after the end of each such fiscal quarter), its
unaudited consolidated balance sheet and related statements of income, stockholders’ equity
and cash flows showing the financial condition as of the close of such fiscal quarter of
the Borrower and its consolidated Subsidiaries at such time and the results of its
operations and the operations of such consolidated Subsidiaries during such fiscal quarter
and the then elapsed portion of the fiscal year, and comparative figures for

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the same periods in the immediately preceding fiscal year, all certified by one of its
Financial Officers to the effect that such financial statements, while not examined by
independent public accountants, reflect in the opinion of the Borrower all adjustments
necessary to present fairly in all material respects the financial condition and results of
operations of the Borrower and its consolidated Subsidiaries on a consolidated basis as of
the end of and for such periods in accordance with GAAP consistently applied, subject to
normal year-end audit adjustments;

     (c) Certifications with Financial Reports. (i) Concurrently with any delivery
of financial statements under paragraph (a) above, a letter from the accounting firm
rendering the opinion on such statements stating whether, in connection with their audit
examination, such accounting firm has obtained any knowledge of any Default or Event of
Default in respect of the Financial Covenants that existed on the date of such financial
statements and (ii) concurrently with any delivery of financial statements under paragraph
(a) or (b) above for the first full fiscal quarter ended after the Funds Availability Date
and each quarter and/or year thereafter, a certificate of a Financial Officer of the
Borrower (A) certifying that (x) no condition or event has occurred that would cause them
to believe that a Default or Event of Default has occurred and (y) no Event of Default or
Default has occurred or, if an Event of Default or Default has occurred, specifying the
nature and extent thereof and any corrective action taken or proposed to be taken with
respect thereto, (B) setting forth computations in reasonable detail as is reasonably
satisfactory to the Administrative Agent demonstrating compliance with the Financial
Covenants and setting forth the Borrower’s calculation of the Available Amount as at the
end of such period, (C) disclosing any Reinvestment Event that was consummated in the
preceding fiscal quarter and specifying the nature thereof and the use of proceeds with
respect thereto, (D) summarizing the outstanding balance of all material, long-term
intercompany Indebtedness as of the last day of the fiscal quarter covered by such
financial statements, (E) supplementing the list of Key Contracts on Schedule
1.01(b) and the list of Material Contracts on Schedule 1.01(d) and/or updating
such schedules to reflect amendments or supplements to or replacements of such Key
Contracts or Material Contracts that occurred in the preceding fiscal quarter and (F) to
the extent that (x) a Reinvestment Notice has been given but no Reinvestment Decision Date
has occurred with respect to such Reinvestment Notice or (y) a Reinvestment Decision Date
has occurred but no corresponding reinvestment expenditure or Reinvestment Commitment
Reduction Date has occurred with respect to the proposed reinvestment specified on such
Reinvestment Decision Date, a written status report setting forth developments to date and
an expected timeline for making such proposed reinvestment specified on the Reinvestment
Decision Date;

     (d) Insurance Report. As soon as is practicable and in any event within 90
days after the end of each fiscal year, the Borrower shall furnish the Administrative Agent
and the Collateral Agent (in sufficient copies for each of the Lenders) with (a) a report
in form and substance satisfactory to the Administrative Agent, the Collateral Agent and
the Lenders outlining all material insurance coverage maintained as of the date of such
report by the Borrower and its Restricted Subsidiaries and the duration of such coverage
and (b) an insurance broker’s statement that all premiums then due and payable with respect
to such coverage have been paid and confirming, with respect to any such insurance
maintained by the Borrower and its Restricted Subsidiaries, that the Administrative Agent
has been named as loss payee or additional insured, as applicable;

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     (e) SEC Filings. Promptly after the same become publicly available, notice to
the Administrative Agent for posting on the Approved Electronic Platform that a filing has
been made with the SEC.

     (f) Management Letters. Promptly after the receipt thereof by the Borrower or
any of the Subsidiaries, a copy of any “management letter” received by any such
Person from its certified public accountants and the management’s response thereto;

     (g) Notices of Default. Promptly after the sending or filing thereof, the
Borrower shall notify the Administrative Agent of all notices of default or breach
delivered pursuant to, or in connection with, any Material Indebtedness or Separation
Document;

     (h) Termination of Contractual Obligations. Promptly after the Borrower or
any Restricted Subsidiary becoming aware of the same, the Borrower shall give the
Administrative Agent written notice of any cancellation, termination or loss of any
Material Contract or Key Contract;

     (i) Labor Disputes. Promptly after becoming aware of the same, the Borrower
shall give the Administrative Agent written notice of (a) any material labor dispute
(including any strikes, lockouts or slow downs) with respect to the Core Assets and (b) any
Worker Adjustment and Retraining Notification Act or related liability incurred with
respect to the closing of any Core Asset;

     (j) Certification of Public Information. Concurrently with the delivery of
any document or notice required to be delivered pursuant to this Section 5.05, the Borrower
shall indicate in writing whether such document or notice contains Non-Public Information.
Each Loan Party and each Lender acknowledge that certain of the Lenders may be
“public-side” Lenders (Lenders that do not wish to receive material non-public information
with respect to the Borrower, its Subsidiaries or their securities) and, if documents or
notices required to be delivered pursuant to this Section 5.05 or otherwise are being
distributed through the Approved Electronic Platform, any document or notice that the
Borrower has indicated contains Non-Public Information shall not be posted on that portion
of the Approved Electronic Platform designated for such public-side Lenders. The Borrower
agrees to clearly designate all Information provided to Administrative Agent by or on
behalf of the Borrower that is suitable to make available to public-side Lenders. If the
Borrower has not indicated whether a document or notice delivered pursuant to this
Agreement or the other Loan Documents contains Non-Public Information, Administrative Agent
reserves the right to post such document or notice solely on that portion of the Approved
Electronic Platform designated for Lenders who wish to receive material non-public
information with respect to the Borrower, its Subsidiaries and their securities; and

     (k) Other Reports. Promptly, from time to time, such other information
regarding the operations, business affairs and financial condition of the Borrower or any
Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent
or any Lender (acting through the Administrative Agent) may reasonably request.

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          SECTION 5.06. Litigation and Other Notices. Furnish to the Administrative Agent
written notice of the following promptly after the Borrower or any of its Restricted Subsidiaries
obtains knowledge thereof:

     (a) any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of any action, suit or proceeding, whether at law or in
equity or by or before any arbitrator or Governmental Authority, against the Borrower or
any Subsidiary that could reasonably be expected to result in a Material Adverse Effect;

     (c) the occurrence of any ERISA Event that could reasonably be expected to result in a
Material Adverse Effect; and

     (d) any development that has resulted in, or could reasonably be expected to result
in, a Material Adverse Effect.

          SECTION 5.07. Information Regarding Collateral. (a) Furnish, and will cause each Loan
Party to furnish, to each of the Administrative Agent, and the Collateral Agent prompt written
notice of (i) any change (A) in any Restricted Subsidiary’s corporate name as set forth in its
certificate of incorporation, certificate of formation or other relevant Constituent Documents, (B)
in any office or facility (other than any location within the control of the Administrative Agent
or the Collateral Agent) at which material portions of Collateral owned by it is located (including
the establishment of any such new office or facility), (C) in any Restricted Subsidiary’s corporate
structure or (D) in any Restricted Subsidiary’s Federal Taxpayer Identification Number; (ii) any
formation or acquisition after the Funds Availability Date of any Subsidiary that is not an
Unrestricted Subsidiary; (iii) any sale, transfer, lease, issuance or other disposition (by way of
merger, consolidation, operation of law or otherwise) after the Funds Availability Date of any
Equity Interests of any Subsidiary that is not an Excluded Subsidiary to any Person other than the
Borrower or another Subsidiary Guarantor; and (iv) any Excluded Subsidiary that ceases to be an
Excluded Subsidiary. The Borrower agrees not to effect or permit any change referred to in the
preceding sentence with respect to a Loan Party unless it has given notice to the Administrative
Agent and the Collateral Agent at least 5 Business Days before the change, so that a reasonable
period has been provided for making all filings under the UCC or otherwise and taking all other
actions, in each case that are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected (subject to the limitations set forth in
Section 3.19) security interest in all the Collateral (other than any Excluded Perfection Assets).
The Borrower also agrees promptly to notify each of the Administrative Agent and the Collateral
Agent if any material portion of the Collateral is damaged or destroyed.

          (b) In the case of the Borrower, each year, at the time of delivery of the annual financial
statements with respect to the preceding fiscal year pursuant to Section 5.05(a), deliver to the
Administrative Agent a certificate of a Financial Officer of the Borrower setting forth (i) the
information required pursuant to Section I of the Perfection Certificate or confirming that there
has been no change in such information since the date of the Perfection Certificate delivered on
the Funds Availability Date (or the date of the most recent certificate delivered pursuant to this
Section 5.07(b)), (ii) any liquidation or dissolution during such preceding fiscal

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year of any Subsidiary other than an Excluded Subsidiary and (iii) a copy of the Corporate
Chart that is true, correct, complete and current as of the date of such certificate.

          (c) Promptly following the acquisition of (i) any new power generating facility by the
Borrower or any Subsidiary Guarantor or (ii) the acquisition of any Subsidiary that owns a power
generating facility and becomes a Subsidiary Guarantor pursuant to Section 5.10, the Borrower shall
update the “Core Assets” schedule attached as Schedule 1.01(a) to include such newly
acquired power generating facility.

          (d) To the extent incurred in reliance on the exception set forth in Section 6.02(aa), provide
written notice of the imposition of any Liens, restrictions, regulations, Easements, exceptions or
reservations of any Governmental Authority on any Mortgaged Property or Core Asset.

          SECTION 5.08. Maintaining Records; Access to Properties and Inspections; Environmental
Assessments. (a) Keep, and cause each Restricted Subsidiary to keep, proper books of record
and account as are necessary to (i) prepare the financial statements of the Borrower and its
Subsidiaries in accordance with GAAP and (ii) comply with Section 5.13. No more than once in any
fiscal year (except if an Event of Default has occurred and is continuing) the Borrower will, and
will cause each of its Restricted Subsidiaries to, permit, if requested by the Administrative
Agent, any representatives designated by the Administrative Agent or any Lender to visit and
inspect the financial records and the properties of the Borrower or any of its Restricted
Subsidiaries at reasonable times and as reasonably requested and to make extracts from and copies
of such financial records, and permit any representatives designated by the Administrative Agent or
any Lender to discuss the affairs, finances and condition of the Borrower or any of its Restricted
Subsidiaries with the officers thereof and independent accountants therefor.

          (b) At its election, the Administrative Agent may retain, or require the Borrower to retain,
an independent engineer or environmental consultant to conduct an environmental assessment of any
Mortgaged Property or Core Asset (including, without limitation, the Facilities) of the Borrower or
any Restricted Subsidiary. Any such environmental assessments conducted pursuant to this paragraph
(b) shall be at the Borrower’s sole cost and expense only if conducted following the occurrence and
continuation of (i) an Event of Default or (ii) any event, circumstance or condition that could
reasonably be expected to result in an Event of Default, in the case of each of clause (i) and (ii)
that concerns or relates to any Environmental Liabilities of the Borrower or any Restricted
Subsidiary; provided that the Borrower shall only be responsible for such costs and
expenses to the extent that such environmental assessment is limited to that which is reasonably
necessary to assess the subject matter of such Event of Default or such event, circumstance or
condition that could reasonably be expected to result in an Event of Default. In addition,
environmental assessments conducted pursuant to this paragraph (b) shall not be conducted more than
once every 12 months with respect to any parcel of Mortgaged Property or any Core Asset of the
Borrower or any Restricted Subsidiary unless such environmental assessments are conducted following
the occurrence of (i) an Event of Default or (ii) any event, circumstance or condition that could
reasonably be expected to result in an Event of Default, in the case of each of clause (i) and (ii)
that concerns or relates to any Environmental Liabilities of the Borrower or any Restricted
Subsidiary. The Borrower shall, and shall cause each of the Restricted Subsidiaries to, reasonably
cooperate in the performance of any such environmental assessment and permit any such engineer or
consultant designated by the Administrative Agent to have reasonable access to each Mortgaged
Property or Core Asset at

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reasonable times and after reasonable notice to the Borrower of the plans to conduct such an
environmental assessment. Environmental assessments conducted under this paragraph (b) shall be
limited to visual inspections of the Mortgaged Property or Core Asset, interviews with
representatives of the Borrower or facility personnel, and review of applicable records and
documents pertaining to the Mortgaged Property or Core Asset.

          (c) In the event that the Administrative Agent reasonably believes that Hazardous Materials
have been Released or are threatened to be Released on any Mortgaged Property or Core Asset of the
Borrower or any Restricted Subsidiary or that any such Mortgaged Property or Core Asset is not
being operated in compliance with applicable Environmental Law, in each case where the Release,
threatened Release or failure to comply has resulted in, or could reasonably be expected to result
in, a material Environmental Liability of the Borrower any of the Restricted Subsidiaries, the
Administrative Agent may, at its election and after reasonable notice to the Borrower, retain, or
require the Borrower to retain, an independent engineer or other qualified environmental consultant
to reasonably assess the subject matter of such Release, threatened Release or failure to comply
with applicable Environmental Law. Such environmental assessments may include detailed visual
inspections of the Mortgaged Property or Core Asset, including any and all storage areas, storage
tanks, drains, dry wells and leaching areas, and the taking of soil samples, surface water samples
and groundwater samples as well as such other reasonable investigations or analyses in each case as
are reasonable and necessary to assess the subject matter of the Release, threatened Release or
failure to comply. The Borrower shall, and shall cause each of the Restricted Subsidiaries to,
reasonably cooperate in the performance of any such environmental assessment and permit any such
engineer or consultant designated by the Administrative Agent to have reasonable access to each
property or facility at reasonable times and after reasonable notice to the Borrower of the plans
to conduct such an environmental assessment. All environmental assessments conducted pursuant to
this paragraph (c) shall be at the Borrower’s sole cost and expense.

          SECTION 5.09. Use of Proceeds. Use the proceeds of the Loans and request the issuance
of Letters of Credit only for the purposes set forth in Section 3.13.

          SECTION 5.10. Additional Collateral, etc. (a) With respect to any property acquired
after the Funds Availability Date by any Loan Party (other than Excluded Assets, Excluded
Perfection Assets and any property described in paragraph (b), (c) or (d) below) as to which the
Collateral Agent, for the benefit of the Senior Secured Parties, does not have a perfected Lien,
promptly (and, in any event within 20 Business Days following the date of such acquisition) (i)
execute and deliver to the Administrative Agent and the Collateral Agent such amendments to the
Guarantee and Collateral Agreement or such other documents as the Collateral Agent deems necessary
or reasonably advisable to grant to the Collateral Agent, for the benefit of the Senior Secured
Parties, a security interest in such property and (ii) take all actions necessary or reasonably
advisable to grant to the Collateral Agent, for the benefit of the Senior Secured Parties, a
perfected first priority security interest in such property (subject, in the case of property not
constituting Pledged Securities, to Permitted Liens, and in the case of Pledged Securities, to
Liens permitted by Section 6.02(e)), including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by
law or as may be reasonably requested by the Collateral Agent.

          (b) With respect to any fee interest in any real property or any lease consisting of real
property acquired or leased after the Funds Availability Date by any Loan Party (other than any
Excluded Assets and Excluded Perfection Assets) within ninety (90) days after

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the acquisition or leasing thereof (i) execute and deliver a first priority Mortgage (subject
only to Liens permitted by clauses (a), (f) and (g) of Section 6.02) or where appropriate under the
circumstances, an amendment to an existing Mortgage, in each case in favor of the Collateral Agent,
for the benefit of the Senior Secured Parties, covering such real property, (ii) if requested by
the Administrative Agent, provide the Senior Secured Parties with (x) either (1) (A) title
insurance covering such real property in an amount at least equal to the purchase price of such
real property (or such other amount as shall be reasonably specified by the Administrative Agent)
in form and substance reasonably satisfactory to the Administrative Agent; and (B) a current ALTA
survey thereof, complying with the requirements set forth in Schedule 5.10(b) together with a
surveyor’s certificate (only with respect to (i) any power plant, (ii) any improved real property,
and (iii) any other real property for which an ALTA survey was obtained when such property was
acquired. Notwithstanding the foregoing, such Loan Party shall obtain or cause to be obtained an
ALTA survey complying with the requirements set forth in Schedule 5.10(b) together with a
surveyor’s certificate for any real property that becomes Collateral pursuant to this section to
the extent that the title company will not remove the survey exception (or endorse over such
exception) without an ALTA survey) or (2) where an amendment to an existing Mortgage has been
delivered pursuant to clause (i) instead of a Mortgage, an endorsement to the existing title policy
adding such property as an insured parcel, or a new title policy if the requirements in the state
in which the real property is located do not allow for such an endorsement, and (y) any consents or
estoppels reasonably deemed necessary or advisable by the Administrative Agent or the Collateral
Agent in connection with such Mortgage or Mortgage amendment (to the extent obtainable using
commercially reasonable efforts), each of the foregoing in form and substance reasonably
satisfactory to the Collateral Agent, (iii) if requested by the Administrative Agent, deliver to
the Administrative Agent and the Collateral Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent and the Collateral Agent, (iv) if requested by the Administrative Agent or
the Collateral Agent, deliver to the Administrative Agent and the Collateral Agent a current
appraisal of such real property or other valuation of such Loan Party’s interest therein in a form
and by an appraiser reasonably acceptable to the Administrative Agent, (v) deliver to the
Administrative Agent and the Collateral Agent a SFHDF with respect to such real property and, to
the extent that the SFHDF indicates that such real property is in a Special Flood Hazard Area as
designated by the Federal Emergency Management Agency, proof that adequate flood insurance, as
required under the National Flood Insurance Program, has been obtained with respect to such real
property and (vi) deliver evidence of zoning compliance satisfactory to the Collateral Agent or
Administrative Agent.

          (c) With respect to (i) any new Subsidiary (other than an Excluded Subsidiary) created or
acquired by the Borrower or any of the Restricted Subsidiaries or (ii) any domestic Immaterial
Subsidiary or domestic Unrestricted Subsidiary that is designated as a Restricted Subsidiary in
accordance with Section 6.11, in each case, after the Funds Availability Date, within twenty (20)
days of such creation, acquisition or designation the Borrower or the applicable Restricted
Subsidiary shall (i) execute and deliver to the Administrative Agent and the Collateral Agent such
amendments to the Guarantee and Collateral Agreement as the Administrative Agent and the Collateral
Agent deem necessary or reasonably advisable to grant to the Collateral Agent, for the benefit of
the Senior Secured Parties, a perfected first priority security interest in the Capital Stock of
such new Subsidiary that is owned by any Loan Party (subject only to the Liens permitted by clause
(e) of Section 6.02), (ii) deliver to the Collateral Agent any certificates representing such
Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the Borrower or such Restricted

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Subsidiary, (iii) cause such Subsidiary that is a wholly-owned Subsidiary (A) to become a
party to the Guarantee and Collateral Agreement, and (B) to take such actions necessary or
advisable to grant to the Collateral Agent for the benefit of the Senior Secured Parties a
perfected first priority security interest (subject, in the case of property not constituting
Pledged Securities, to Permitted Liens, and in the case of Pledged Securities, to Liens permitted
by Section 6.02(e)) in the Collateral described in the Guarantee and Collateral Agreement with
respect to such new Subsidiary, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by
Applicable Law or as may be reasonably requested by the Administrative Agent and (iv) if requested
by the Administrative Agent, deliver to the Administrative Agent and the Collateral Agent legal
opinions relating to the matters described above, which opinions shall be in form and substance,
and from counsel, reasonably satisfactory to the Administrative Agent and the Collateral Agent.

          (d) With respect to (i) any Foreign Subsidiary created or acquired after the Funds
Availability Date and directly owned by any Loan Party or (ii) any foreign Immaterial Subsidiary or
foreign Unrestricted Subsidiary that is designated as a Restricted Subsidiary in accordance with
Section 6.11 and directly owned by any Loan Party, in each case, after the Funds Availability Date
        , promptly (and, in any event, within 30 days of the creation or acquisition thereof) (A) execute
and deliver to the Administrative Agent and the Collateral Agent (x) such amendments to the
Guarantee and Collateral Agreement as the Collateral Agent deems necessary or reasonably advisable
and/or (y) a Foreign Pledge Agreement, in each case to grant to the Collateral Agent, for the
benefit of the Senior Secured Parties, a perfected first priority security interest in the Capital
Stock of such Foreign Subsidiary that is owned by any such Loan Party (subject only to the Liens
permitted by clause (e) of Section 6.02 and provided that in no event shall more than 65%
of the total outstanding voting Capital Stock of any such Foreign Subsidiary be required to be so
pledged), (B) if commercially reasonable, deliver to the Collateral Agent the certificates
representing such Capital Stock, together with undated stock power, in blank, executed and
delivered by a duly authorized officer of the relevant Loan Party, and take such other action as
may be necessary or, in the opinion of the Administrative Agent, desirable to perfect the
Collateral Agent’s security interest therein, and (C) if requested by the Administrative Agent,
deliver to the Administrative Agent and the Collateral Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent and the Collateral Agent.

          SECTION 5.11. Further Assurances. (a) From time to time duly authorize, execute and
deliver, or cause to be duly authorized, executed and delivered, such additional instruments,
certificates, financing statements, agreements or documents, and take all such actions (including
filing UCC and other financing statements), as the Administrative Agent or the Collateral Agent may
reasonably request, for the purposes of implementing or effectuating the provisions of this
Agreement and the other Loan Documents, or perfecting or renewing the rights of the Administrative
Agent, the Collateral Agent and the Senior Secured Parties with respect to the Collateral (or with
respect to any additions thereto or replacements or proceeds or products thereof or with respect to
any other property or assets hereafter acquired by the Borrower or any Restricted Subsidiary which
assets or property may be deemed to be part of the Collateral) pursuant hereto or thereto. Upon
the exercise by the Administrative Agent, the Collateral Agent or any Lender of any power, right,
privilege or remedy pursuant to this Agreement or the other Loan Documents which requires any
consent, approval, recording, qualification or authorization of any Governmental Authority, the
Borrower will execute and deliver, or will cause the execution and delivery of, all applications,
certifications, instruments and other documents and

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papers that the Administrative Agent, the Collateral Agent or such Lender may be required to
obtain from the Borrower or any of the Restricted Subsidiaries for such governmental consent,
approval, recording, qualification or authorization.

          (b) For any additional Deposit Account, Securities Account or Commodities Account opened after
the Funds Availability Date (except to the extent any such account is an Excluded Asset or an
Excluded Perfection Asset), at its sole expense, with respect to any such Deposit Account,
Securities Account or Commodities Account, each applicable Subsidiary Guarantor shall take any
actions required for the Collateral Agent to obtain “control” (within the meaning of the
applicable UCC) with respect thereto, as set forth in greater detail in the Guarantee and
Collateral Agreement.

          (c) The Administrative Agent may establish one or more L/C Cash Collateral Accounts with such
depositaries and Securities Intermediaries (as defined in the UCC) as it in its sole discretion
shall determine. The Borrower agrees that each such L/C Cash Collateral Account shall meet the
requirements of the definition of “L/C Cash Collateral Account”. Without limiting the
foregoing, funds on deposit in any L/C Cash Collateral Account may be invested (but the
Administrative Agent shall be under no obligation to make any such investment) in Cash Equivalents
at the direction of the Administrative Agent and, except during the continuance of an Event of
Default, the Administrative Agent agrees with the Borrower to issue Entitlement Orders (as defined
in the UCC) for such investments in Cash Equivalents as requested by the Borrower;
provided, however, that the Administrative Agent shall not have any responsibility
for, or bear any risk of loss of, any such investment or income thereon. Neither the Borrower nor
any Restricted Subsidiary and no Person claiming on behalf of or through the Borrower or such
Restricted Subsidiary shall have any right to demand payment of any funds held in any L/C Cash
Collateral Account at any time prior to the termination of all outstanding Letters of Credit and
the payment in full of all then outstanding and payable monetary Secured Obligations. The
Administrative Agent shall apply all funds on deposit in an L/C Cash Collateral Account as provided
in Section 2.03(k) and Section 2.13(g).

          SECTION 5.12. Maintenance of Properties. (i) Maintain and preserve all of its
material properties and equipment necessary in the operation of its business in working order and
condition sufficient for the continued operation of its business, ordinary wear and tear and
obsolescence excepted; (ii) make all necessary repairs thereto and renewals and replacements
thereof except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect; and (iii) use the standard of care typical in the industry in the operation and
maintenance of its facilities.

          SECTION 5.13. Corporate Separateness. (i) Maintain books, financial records and bank
accounts that are separate and distinct from the books, financial records and bank accounts of each
other Loan Party and its Subsidiaries (for purposes of this Section 5.13, the “Other Loan
Parties”); (ii) observe appropriate corporate, limited liability company or partnership, as
applicable, procedures and formalities; (iii) except with respect to an intercompany merger
permitted by Section 6.04, hold itself out as an entity separate and distinct from any other Person
(including its Affiliates) (except that nothing herein shall prohibit the filing of a consolidated
tax return for the Borrower and its Subsidiaries or the entry by Borrower or any of its
Subsidiaries into one or more tax sharing agreements permitted by this Agreement or the tax
indemnification agreement with Entergy for prior periods); (iv) except with respect to an
intercompany merger permitted by Section 6.04, conduct its own business in its own name; (v) except
with respect to an intercompany merger permitted by Section 6.04, hold all of its assets in

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its own name; (vi) except with respect to an intercompany merger permitted by Section 6.04,
not identify itself as a division or department of any other Loan Party, except for tax purposes;
and (vii) except with respect to an intercompany merger permitted by Section 6.04, conduct
transactions between such Subsidiaries and third parties only in the name of such Subsidiary and as
an entity separate and independent from its Affiliates.

          SECTION 5.14. Maintenance of Ratings. Maintain from each of S&P and Moody’s (i)
ratings of the Indebtedness evidenced by this Agreement and (ii) corporate credit and corporate
family ratings of the Borrower.

          SECTION 5.15. Key Contracts and Joint Venture Agreements. (a) Shall (i) not permit
any Key Contracts and (ii) use commercially reasonable efforts to prevent joint venture agreements
entered into after the Funds Availability Date in each case to contain any restriction on the
pledge, collateral assignment or transfer of such Key Contract or such joint venture agreement (or
ownership or Equity Interests in respect thereof) to the Collateral Agent for the benefit of the
Senior Secured Parties.

          (b) Shall (i) not permit restrictions in any Key Contracts and (ii) use commercially
reasonable efforts to prevent joint venture agreements entered into or after the Funds Availability
Date that would prevent the Collateral Agent or its designee from enforcing such Key Contract or
foreclosing on such Loan Party’s ownership or Equity Interests in respect of such joint venture
following an exercise of remedies as contemplated in Section 7.03 of this Agreement or as provided
in any Security Document.

ARTICLE VI

Negative Covenants

     The Borrower covenants and agrees with each Lender that, (i) from and after the Signing Date,
so long as this Agreement shall remain in effect and until the earlier of (A) the Funds
Availability Date and (B) the Outside Date, the Borrower will, and will cause each of the
Restricted Subsidiaries to comply with the negative covenants set forth in Annex VI and
(ii) from and after the Funds Availability Date, so long as this Agreement shall remain in effect
and until the Commitments have been terminated and the principal of and interest on each Loan, all
fees and all other expenses or amounts payable under any Loan Document (other than indemnification
and other contingent obligations in each case not then due and payable) shall have been paid in
full and all Letters of Credit have been cancelled or have expired and all amounts drawn thereunder
have been reimbursed in full or reimbursement thereof shall have been cash-collateralized in an
amount equal to 100% of the Letter of Credit Obligations as of such time, the Borrower will not,
nor will it cause or permit any of its Restricted Subsidiaries to:

          SECTION 6.01. Indebtedness and Preferred Stock. Directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or
otherwise, with respect to any Indebtedness, and the Borrower will not issue any Disqualified Stock
and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock
except for:

     (a) the incurrence by the Borrower (and the Guarantee thereof by the Subsidiary
Guarantors) of the Indebtedness created (and the Reimbursement Obligations with respect to
Letters of Credit issued) under the Loan Documents;

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     (b) Indebtedness of the Borrower or any Subsidiary pursuant to a Credit Support
Facility;

     (c) Indebtedness of the Borrower and its Restricted Subsidiaries set forth on
Schedule 6.01(c) (Funding);

     (d) the incurrence by the Borrower and its Restricted Subsidiaries (other than the NY
Real Property Subsidiaries) of Additional Intercreditor Indebtedness; provided that
(i) no Default or Event of Default exists immediately prior to, or would exist immediately
after giving effect to, the incurrence of any such Indebtedness and (ii) the Borrower shall
be in compliance with the Financial Covenants for the Borrower’s most recently ended Test
Period for which financial statements are publicly available immediately preceding the date
on which any such Indebtedness is incurred on a pro forma basis (including a pro forma
application of the net proceeds therefrom), as if such additional Indebtedness (and any
other Indebtedness incurred during such Test Period or from the end of such Test Period
through the date on which such calculation is made) had been incurred at the beginning of
the applicable Test Period and was outstanding on such calculation date; provided,
further that if such Additional Intercreditor Indebtedness takes the form of a
revolving credit facility, the tests in the proviso above shall be met on the date such
revolving loan commitments become effective, assuming the incurrence of the full committed
amount of such revolving credit facility;

     (e) the incurrence by (i) the Borrower of Indebtedness in respect of the Senior Notes,
and if applicable, any Funds Availability Indebtedness and (ii) the Subsidiary Guarantors
of Indebtedness in respect of the Senior Note Guarantees and if applicable, any Funds
Availability Indebtedness Guarantees;

     (f) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness represented by Attributable Debt, Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the purpose of
financing all or any part of the purchase price or cost of design, construction,
installation, repair, restoration, expansion or improvement or lease of property (real or
personal), plant or equipment used in the business of the Borrower or any of its Restricted
Subsidiaries or incurred within 270 days after any of the foregoing, in an aggregate
principal amount, including (without duplication) all Permitted Refinancing Indebtedness
incurred to refund, modify, extend, renew, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (f), not to exceed $600,000,000 at any time
outstanding;

     (g) the incurrence by the Borrower or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance, replace, defease, modify, extend, renew or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted by this Agreement to be incurred under
clauses (b), (c), (e), (f), (o), (p) and (x) of this Section 6.01; provided,
however, that with respect to the NY Real Property Subsidiaries, such Permitted
Refinancing Indebtedness shall be permitted only with respect to clauses (b), (c), (e),
(f), (o) and (x) of this Section 6.01;

     (h) the incurrence by the Borrower and the Restricted Subsidiaries of unsecured
intercompany Indebtedness that constitutes an Investment permitted under

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Sections 6.05(g) or 6.05(j); provided, however, that (i) if the
Borrower or any Subsidiary Guarantor is the obligor on such Indebtedness and the payee is
not the Borrower or a Subsidiary that is a Subsidiary Guarantor, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all Secured Obligations
(which subordination may be pursuant to an Intercompany Debt Subordination Agreement or any
other agreement containing terms satisfactory to the Administrative Agent and the
Collateral Agent executed and delivered by both the applicable borrower and lender); and
(ii)(A) any subsequent issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than the Borrower or a Restricted Subsidiary and
(B) any sale or other transfer of any such Indebtedness to a Person that is not either the
Borrower or a Restricted Subsidiary will be deemed, in each case, to constitute an
incurrence of such Indebtedness by the Borrower or such Restricted Subsidiary, as the case
may be, that was not permitted by this clause (h);

     (i) the issuance by any of the Borrower’s Restricted Subsidiaries to the Borrower or
to any of its other Restricted Subsidiaries of shares of preferred stock; provided,
however, that (i) any subsequent issuance or transfer of Equity Interests that
results in any such preferred stock being held by a Person other than the Borrower or a
Restricted Subsidiary and (ii) any sale or other transfer of any such preferred stock to a
Person that is not either the Borrower or a Restricted Subsidiary will be deemed, in each
case, to constitute an issuance of such preferred stock by such Restricted Subsidiary that
was not permitted by this clause (i);

     (j) the incurrence by the Borrower or any of its Restricted Subsidiaries of Commodity
Hedging Obligations and Interest Rate/Currency Hedging Obligations, provided,
however, that the NY Real Property Subsidiaries shall not incur Commodity Hedging
Obligations or Interest Rate/Currency Hedging Obligations other than pursuant to FERC 205
Contracts;

     (k) the Guarantee by the Borrower or any of the Subsidiary Guarantors of Indebtedness
of the Borrower or a Restricted Subsidiary that was permitted to be incurred by another
provision of this Section 6.01 (other than in respect of self insurance); provided
that, (i) in each such case, if the Indebtedness being guaranteed is subordinated to the
Secured Obligations hereunder, then the Guarantee shall be subordinated to the same extent
as the Indebtedness guaranteed and (ii) in the case of Guarantees of Indebtedness incurred
pursuant to Section 6.01(w), such Guarantees shall be subordinated on terms at least as
restrictive as the subordination terms of the Senior Note Guarantees;

     (l) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other Financial Institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) inadvertently drawn
against insufficient funds, so long as such Indebtedness is discharged within five Business
Days;

     (m) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness in respect of, bankers’ acceptances and performance bonds, bid bonds, appeal
bonds, completion guarantees, bank guarantees, letters of credit, warehouse receipts and
surety bonds provided by the Borrower or a Restricted Subsidiary in the ordinary course of
business;

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     (n) the incurrence of Indebtedness that may be deemed to arise as a result of
agreements of the Borrower or any Restricted Subsidiary providing for indemnification,
adjustment of purchase price (including earn outs) or any similar obligations, in each
case, incurred in connection with any Permitted Acquisition or Investment permitted
pursuant to Sections 6.05(g), 6.05(h) and 6.05(j) or Asset Sale or other disposition not
prohibited hereunder; provided that (i) in the case of any such Asset Sale or
disposition, the aggregate maximum liability associated with such provisions may not exceed
the gross proceeds (including non-cash proceeds) of such disposition and (ii) this clause
(n) shall only apply to NY Real Property Subsidiaries in respect of Indebtedness
constituting indemnification obligations arising from Asset Sales permitted under Section
6.04(b);

     (o) the incurrence of Indebtedness of a Person or Indebtedness attaching to assets of
a Person that, in either case, becomes a Restricted Subsidiary or Indebtedness attaching to
assets that are acquired by the Borrower or any Restricted Subsidiary, in each case after
the Funds Availability Date as the result of a Permitted Acquisition; provided that
(i) such Indebtedness existed at the time such Person became a Restricted Subsidiary or at
the time such assets were acquired and, in each case, was not created in anticipation
thereof, (ii) such Indebtedness is not guaranteed in any respect by the Borrower or any
Restricted Subsidiary (other than any such Person that so becomes a Restricted Subsidiary)
and (iii)(A) the Capital Stock of such Person are pledged to the Collateral Agent to the
extent required under Section 5.10 and (B) such Person executes a supplement to each of the
Security Documents (or alternative guarantee and security arrangements in relation to the
Secured Obligations) to the extent required under Section 5.10;

     (p) the incurrence by the Borrower (other than the NY Real Property Subsidiaries) of
Indebtedness to finance a Permitted Acquisition; provided that (i) such
Indebtedness is not guaranteed in any respect by any Person other than the Person acquired
(the “acquired Person”) as a result of such Permitted Acquisition, and (ii)(A) the
Borrower pledges the Capital Stock of such acquired Person to the Collateral Agent to the
extent required under Section 5.10 and (B) such acquired Person executes a supplement to
the Security Documents (or alternative guarantee and security arrangements in relation to
the Secured Obligations) to the extent required under Section 5.10;

     (q) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness
consisting of (i) obligations to pay insurance premiums, (ii) self-insurance obligations or
(iii) take-or-pay obligations contained in supply agreements, in each case arising in the
ordinary course of business and not in connection with the borrowing of money or Hedging
Obligations.

     (r) [Intentionally omitted]

     (s) Guarantee obligations in respect of any Investment permitted pursuant to Sections
6.05(a), 6.05(c), 6.05(d) (to the extent existing on the Funds Availability Date), 6.05(e),
6.05(g), 6.05(h), 6.05(j), 6.05(o), 6.05(p) and 6.05(q);

     (t) Cash Management Obligations;

     (u) Indebtedness representing (i) workers compensation claims, (ii) health, disability
or other employee benefits and (iii) deferred compensation to employees,

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consultants or independent contractors of the Borrower and the Restricted Subsidiaries
incurred in the ordinary course of business;

     (v) Indebtedness consisting of promissory notes issued by the Borrower or any
Restricted Subsidiary to current or former officers, managers, consultants, directors and
employees (or their respective spouses, former spouses, successors, executors,
administrators, heirs, legatees or distributees) to finance the purchase or redemption of
Capital Stock or Capital Stock Equivalents of the Borrower permitted by Section 6.06(b);

     (w) additional unsecured Indebtedness; provided that (i) such Indebtedness
matures after, and does not require any scheduled amortization or other scheduled payments
of principal prior to, the Revolving Credit Maturity Date; (ii) such Indebtedness is
incurred by the Borrower; (iii) both immediately prior and after giving effect to the
incurrence thereof, (A) no Default or Event of Default shall exist or result therefrom and
(B) the Borrower and its Restricted Subsidiaries shall be in pro forma compliance with the
Financial Covenants and (iv) to the extent that such incurrence of additional unsecured
Indebtedness exceeds an aggregate principal amount of $20,000,000, the Borrower delivers a
certificate of a Financial Officer to the Administrative Agent at least 2 Business Days
prior to the incurrence of such unsecured Indebtedness stating that the Borrower has
determined in good faith that such terms and conditions satisfy the requirements of this
clause (w);

     (x) the incurrence by the Borrower or any Restricted Subsidiary of Environmental CapEx
Debt or Necessary CapEx Debt (which Indebtedness may be secured to the extent provided in
Section 6.02(bb)); provided that, prior to the incurrence of any such Environmental
CapEx Debt or Necessary CapEx Debt, the Borrower shall deliver to the Administrative Agent
an officers’ certificate by a Financial Officer designating such Indebtedness as
Environmental CapEx Debt or Necessary CapEx Debt, as applicable;

     (y) Indebtedness incurred by the Borrower and its Restricted Subsidiaries in good
faith to invest in nuclear decommissioning trusts or to comply with decommissioning
agreements; and

     (z) all premiums (if any), interest (including post-petition interest), fees,
expenses, charges, and additional or contingent interest on obligations described in
clauses (a) through (y) above.

     For purposes of determining compliance with this Section 6.01, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Indebtedness described in
clauses (a) through (z) above, the Borrower shall, in its reasonable discretion, classify and
reclassify or later divide, classify or reclassify such item of Indebtedness (or any portion
thereof) and will only be required to include the amount and type of such Indebtedness in one or
more of the above clauses.

          SECTION 6.02. Liens. Directly or indirectly, create, incur, assume or suffer to exist
any Lien of any kind on, or assign any right to receive income or profits on, any property or asset
now owned or hereafter acquired, except:

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     (a) Liens held by the Collateral Agent pursuant to the Loan Documents on assets of the
Borrower or any Subsidiary Guarantor securing the Secured Obligations of the Borrower or
such Subsidiary Guarantor (including Liens securing Specified Commodity Hedging
Transactions, Specified Credit Support Facilities and Additional Intercreditor Indebtedness
and Related Agreements);

     (b) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds, bid bonds, completion guarantees or other obligations of a like nature
incurred in the ordinary course of business;

     (c) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 6.01(f), (o) and (p) hereof covering only the assets acquired with or financed by
such Indebtedness;

     (d) Liens existing on the Funds Availability Date and set forth on Schedule
6.02(d) (Funding);

     (e) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision has been made to the extent required by GAAP;

     (f) Liens of landlords arising by statute and liens of suppliers, mechanics,
repairmen, carriers, materialmen, bailees, warehousemen or workmen and other similar Liens,
in each case (i) imposed by law or arising in the ordinary course of business, (ii) for
amounts not yet due or that are not overdue for a period of more than sixty (60) days or
which are being contested in good faith by appropriate proceedings and (iii) with respect
to which adequate reserves or other appropriate provisions are being maintained to the
extent required by GAAP;

     (g) any exception, minor defect or irregularity (i) listed on the title policies or on
the surveys issued in connection with any Mortgaged Property and (ii) in respect of any
Mortgaged Properties following the Funds Availability Date and other real property, other
properly recorded easements, rights of way, licenses, reservations, servitudes, permits,
conditions, covenants, rights of others, restrictions, oil, gas and other mineral
interests, royalty interests and leases, encroachments, protrusions, zoning or land use
rights and other similar charges or encumbrances, and with respect to (i) and (ii) that do
not interfere in any material respect with the Permitted Business conducted at such
Mortgaged Property or such other real property;

     (h) Liens to secure any Permitted Refinancing Indebtedness permitted under Section
6.01; provided that such Lien shall be limited to all or part of the same property
and assets that secured or, under the written agreements pursuant to which the original
Lien arose, could secure the original Lien (plus improvements and accessions to such
property or proceeds or distributions thereof);

     (i) Liens incurred or deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security
benefits;

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     (j) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Borrower or any of its Restricted
Subsidiaries, including rights of offset and set-off, in each case made in the ordinary
conduct of the Permitted Business;

     (k) Liens arising under leases or subleases of real property that do not, in the
aggregate, materially detract from the value of such real property or interfere with the
ordinary conduct of the Permitted Business as proposed to be conducted at such real
property;

     (l) statutory Liens arising under ERISA incurred in the ordinary conduct of the
Permitted Business;

     (m) Liens existing on the assets of any Person that becomes a Restricted Subsidiary or
existing on assets acquired, in each case pursuant to a Permitted Acquisition, to the
extent the Liens on such assets secure Indebtedness permitted by Section 6.01(o);
provided that such Liens attach at all times only to the same assets that such
Liens attached to, and secure only the same Indebtedness that such Liens secured,
immediately prior to such Permitted Acquisition;

     (n) Liens on cash and Cash Equivalents (i) deposited by the Borrower or any of the
Restricted Subsidiaries in margin accounts with or on behalf of futures contract brokers or
paid over to other counterparties, or (ii) pledged or deposited as collateral to a contract
counterparty or issuer of surety bonds or issuer of letters of credit by the Borrower or
any of the Restricted Subsidiaries, in each case incurred in the ordinary course of the
Permitted Business to secure Interest Rate/Currency Hedging Obligations that are not
secured by the Lien of the Collateral Agent, Commodity Hedging Transactions (other than
Specified Commodity Hedging Transactions) and Credit Support Facilities (other than
Specified Credit Support Facilities); provided, that at the time such Lien is
incurred, the Borrower would be in pro forma compliance with its Financial Covenants as
calculated with the most recent financial information delivered pursuant to Section 5.05(a)
or (b) (as applicable) assuming that such cash and Cash Equivalents were no longer netted
for purposes of the definition of Consolidated Total Net Debt;

     (o) set-off or netting rights granted by the Borrower or any Restricted Subsidiary of
the Borrower pursuant to any Hedging Transactions, solely in respect of amounts owing under
such agreements;

     (p) Liens arising from UCC financing statements filed on a precautionary basis in
respect of operating leases intended by the parties to be true leases (other than any such
leases entered into in violation of this Agreement);

     (q) Liens on cash deposits and other funds maintained with a depositary institution,
in each case arising in the ordinary course of business by virtue of any statutory or
common law provision relating to banker’s liens, including Section 4-210 of the UCC;

     (r) Liens on assets or securities granted or deemed to arise in connection with and
solely as a result of the execution, delivery or performance of contracts to

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purchase or sell such assets or securities if such purchase or sale is otherwise
permitted hereunder;

     (s) Liens on assets of the Borrower or any Restricted Subsidiary with respect to
Indebtedness in an aggregate principal amount not to exceed $200,000,000 at any time
outstanding; provided, however, that the assets of the NY Real Property
Subsidiaries shall not be encumbered by Liens in respect of Indebtedness in an aggregate
principal amount exceeding $50,000,000 at any time outstanding;

     (t) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for sale or purchase of goods entered into by the Borrower or any Restricted
Subsidiary in the ordinary course of the Permitted Business;

     (u) Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 6.05;

     (v) Liens in respect of Cash Management Obligations;

     (w) Liens solely on any cash earnest money deposits made by the Borrower or any
Restricted Subsidiary in connection with any letter of intent or purchase agreement for
Permitted Acquisitions made under Section 6.05(h);

     (x) restrictions contained in joint venture agreements triggering a default upon the
Borrower or a Restricted Subsidiary’s pledge of its Equity Interests or other ownership
interests in such joint venture; provided that the Loan Parties shall be in
compliance with Section 5.15 when such Liens arise;

     (y) rights reserved to or vested in others to take or receive any part of, or
royalties related to, the power, gas, oil, coal, lignite, nuclear fuel or other minerals or
timber generated, developed, manufactured or produced by, or grown on, or acquired with,
any property of the Borrower and the Restricted Subsidiaries and Liens upon the production
from property of power, gas, oil, coal, lignite, nuclear fuel or other minerals or timber,
and the by-products and proceeds thereof, to secure the obligations to pay all or a part of
the expenses of exploration, drilling, mining or development of such property only out of
such production or proceeds;

     (z) Liens on cash and Cash Equivalents deposited by the Borrower or any Restricted
Subsidiary in margin accounts with or on behalf of credit clearing organizations,
independent system operators, regional transmission organizations, state agencies or
federal agencies;

     (aa) Liens, restrictions, regulations, Easements, exceptions or reservations of any
Governmental Authority;

     (bb) Liens to secure Environmental CapEx Debt or Necessary CapEx Debt permitted by
Section 6.01(x) that encumber only the assets purchased, installed or otherwise acquired
with the proceeds of such Environmental CapEx Debt or Necessary CapEx Debt;
provided, that the Liens securing such Indebtedness must be pari passu with, or
junior to, the Liens on such assets securing the Secured Obligations; and

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     (cc) Liens on Indebtedness permitted by Sections 6.01(k) or 6.01(z), to the extent
that Liens are permitted on the underlying Indebtedness with respect thereto.

          SECTION 6.03. Limitation on Sale and Leaseback Transactions. Enter into any sale and
leaseback transaction; provided that the Borrower or any Restricted Subsidiary may enter
into a sale and leaseback transaction if (a) the Borrower or such Restricted Subsidiary, as
applicable, could have (i) incurred Indebtedness in an amount equal to the Attributable Debt (if
any) relating to such sale and leaseback transaction under Section 6.01(f) hereof and (ii) incurred
a Lien to secure such Indebtedness (if any) or other obligations associated with such transaction
pursuant to Section 6.02(c); (b) the gross cash proceeds of that sale and leaseback transaction are
at least equal to the Fair Market Value of the property that is subject of that sale and leaseback
transaction; and (c) in the event that such sale and leaseback transaction constitutes an Asset
Sale, the transfer of assets in that sale and leaseback transaction is permitted by Section 6.04.

          SECTION 6.04. Mergers, Consolidations and Sales of Assets. (a)(x) Merge into or
consolidate with any other Person, or permit any other Person to merge into or consolidate with it,
or liquidate or dissolve, or (y) sell, transfer, lease, issue or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of the assets (whether now
owned or hereafter acquired) of the Borrower, except that if at the time thereof and immediately
after giving effect thereto no Event of Default or Default shall have occurred and be continuing
(i) any Restricted Subsidiary (other than a NY Real Property Subsidiary) may merge into the
Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Restricted
Subsidiary (other than a NY Real Property Subsidiary) may merge into or consolidate with any other
Restricted Subsidiary in a transaction in which the surviving entity is a Restricted Subsidiary and
no Person other than the Borrower or a Restricted Subsidiary receives any consideration
(provided that if any party to any such transaction is (A) a Loan Party, the surviving
entity of such transaction shall be a Loan Party and (B) a Domestic Subsidiary, the surviving
entity of such transaction shall be a Domestic Subsidiary), (iii) any merger or consolidation of a
Restricted Subsidiary (other than a NY Real Property Subsidiary) will be permitted in connection
with an Investment permitted by Sections 6.05(h) or 6.05(j) and (iv) any Restricted Subsidiary
(other than a NY Real Property Subsidiary) may liquidate or dissolve or, solely for purposes of
reincorporating in a different jurisdiction, merge if the Borrower determines in good faith that
such liquidation or dissolution or merger is in the best interests of the Borrower and could not
reasonably be expected to result in a Material Adverse Effect;

          (b) Consummate any Asset Sale (notwithstanding that it may be otherwise permitted under
paragraph (a) above) unless (i) the Borrower (or the Restricted Subsidiary, as the case may be)
receives consideration at the time of the Asset Sale at least equal to the Fair Market Value of the
assets or Equity Interests issued or sold or otherwise disposed of; (ii) at least 75% of the
consideration received in the Asset Sale by the Borrower or such Restricted Subsidiary is in the
form of cash (for purposes of this provision, any securities, notes or other obligations received
by the Borrower or any such Restricted Subsidiary from such transferee that are converted by the
Borrower or such Restricted Subsidiary into cash within 180 days of the receipt of such securities,
notes or other obligations, to the extent of the cash received in that conversion will be deemed to
be cash); (iii) any consideration received by the Borrower or any Subsidiary Guarantor in
connection with such Asset Sale pursuant to this paragraph (b) that is in the form of Indebtedness
shall be pledged to the Collateral Agent pursuant to Section 5.10; (iv) with respect to any such
Asset Sale, the Borrower shall be in compliance, on a pro forma basis after giving effect to such
Asset Sale, with the Financial Covenants as if such Asset Sale had occurred on the first day of the

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applicable Test Period; and (v) after giving effect to any such Asset Sale, no Default or
Event of Default shall have occurred and be continuing; provided that with respect to any
such Asset Sale pursuant to this clause (b), the aggregate amount of consideration received from
and after the Funds Availability Date shall not exceed 5% of net property, plant and equipment of
the Borrower and its Restricted Subsidiaries, calculated on a cumulative basis; provided
that no more than $50,000,000 of such aggregate consideration received from and after the Funds
Availability Date may be from Asset Sales of the assets of the NY Real Property Subsidiaries.

          SECTION 6.05. Limitation on Investments. Make any Investment except for:

     (a) extensions of trade credit, asset purchases (including purchases of inventory,
supplies and materials) and the licensing or contribution of intellectual property pursuant
to joint marketing arrangements with other Persons, in each case in the ordinary conduct of
the Permitted Business;

     (b) Cash Equivalents;

     (c) loans and advances to officers, directors and employees of the Borrower or any of
its Restricted Subsidiaries (i) to finance the purchase of Capital Stock of the Borrower
(provided that the amount of such loans and advances used to acquire such Capital
Stock shall be contributed to the Borrower in cash as common equity), (ii) for reasonable
and customary business related travel expenses, relocation expenses and similar expenses,
and (iii) for additional purposes not contemplated by subclause (i) or (ii) above in an
aggregate principal amount at any time outstanding with respect to this clause (iii) not
exceeding $5,000,000 in any fiscal year (with unused amounts in any such period being
carried-forward to any succeeding fiscal year);

     (d) Investments existing on the Funds Availability Date that are set forth in
Schedule 6.05(d) and any extensions, renewals or reinvestments thereof, so long as
the aggregate amount of all Investments pursuant to this clause (d) is not increased at any
time above the amount of such Investments existing on the Funds Availability Date;

     (e) Investments (i) consisting of the purchase or acquisition of Commodity Hedging
Transactions, Interest Rate Hedging Transactions and Currency Hedging Transactions or (ii)
resulting from mark to market exposure in respect of Commodity Hedging Transactions,
Interest Rate Hedging Transactions and Currency Hedging Transactions, in each case to the
extent not prohibited by Sections 6.01(j) or 6.15;

     (f) Investments received in connection with the bankruptcy or reorganization of trade
creditors, trade counterparties, suppliers or customers and in settlement of delinquent
obligations of, and other disputes with, customers;

     (g) Investments (including in the form of loans) by (i) any Loan Party in another Loan
Party, (ii) any Restricted Subsidiary that is not a Loan Party in (A) any Loan Party or (B)
another Restricted Subsidiary that is not a Loan Party;

     (h) Investments constituting Permitted Acquisitions;

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     (i) Investments made to repurchase or retire common stock of the Borrower owned by any
employee stock ownership plan or key employee, directors and officers, or other stock
ownership plans of the Borrower;

     (j) additional Investments by the Borrower and its Restricted Subsidiaries in entities
that are not Loan Parties (including (i) Investments in Unrestricted Subsidiaries, (ii)
Minority Investments and (iii) Letters of Credit Issued on behalf of (x) EquaGen or any
subsidiary of EquaGen, if EquaGen or such subsidiary is not a Subsidiary Guarantor at such
time, or (y) any Subsidiary that is not a Subsidiary Guarantor), but excluding any Proposed
Acquisition, in each case as valued at the Fair Market Value of such Investment at the time
each such Investment is made, in an aggregate amount that, at the time such Investment is
made, would not exceed the sum of (A) $150,000,000 plus (B) the Available Amount at
such time plus (C) to the extent such amounts do not increase the Available Amount,
an amount equal to any repayments, interest, returns, profits, distributions, income and
similar amounts actually received in cash in respect of any such Investment (which amount
shall not exceed the amount of such Investment valued at the Fair Market Value of such
Investment at the time such Investment was made) plus (D) the face amount of any
expired, cancelled or terminated Letter of Credit described in clause (iii) above;
provided, that after giving effect to such additional Investment (i) such
Investment shall result in the Collateral Agent, for the benefit of the Senior Secured
Parties, being granted a security interest in any Equity Interests and/or any assets
acquired to the extent required by Sections 5.10 and/or 5.11; (ii) no Default or Event of
Default shall have occurred and be continuing and (iii) the Borrower shall be in
compliance, on a pro forma basis after giving effect to such Investment, with the Financial
Covenants, as such covenants are recomputed as of the last day of the most recently ended
fiscal quarter for which financial statements are required to be delivered pursuant to
Sections 5.05(a) or 5.05(b) as if such Investment had occurred on the first day of the
applicable Test Period.

     (k) Investments permitted under Section 6.06;

     (l) Investments constituting Guarantees permitted under Section 6.01;

     (m) Investments consisting of non-cash consideration permitted to be received under
Section 6.04(b);

     (n) in connection with an Asset Sale or other disposition not prohibited by this
Agreement, investments of property or assets of the Borrower or any of its Restricted
Subsidiaries to the extent reasonably necessary to consummate any disposition of such
property or assets (or of the Capital Stock of the Person holding such property or assets)
permitted hereunder or to optimize the tax benefits or minimize the adverse tax
consequences of any such disposition;

     (o) Investments made by the Borrower and its Restricted Subsidiaries in good faith to
invest in nuclear decommissioning trusts or to comply with decommissioning agreements;

     (p) the acquisition by the Borrower of any Equity Interests of EquaGen not owned by
the Borrower as of the Funds Availability Date, provided that the Collateral Agent shall be
granted a security interest in such Equity Interests pursuant to Section

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5.10, and if EquaGen shall thereafter be a wholly-owned Subsidiary, then EquaGen shall
become a Restricted Subsidiary and a Subsidiary Guarantor; and

     (q) additional Investments by the Borrower or any of its Restricted Subsidiaries in an
aggregate amount not to exceed $150,000,000 at any time outstanding (without giving effect
to any write downs or write offs thereof);

     provided, however that no intercompany Investments or advances may be made by
the Borrower and its Restricted Subsidiaries for the purpose of making payments prohibited by the
proviso at the end of Section 6.06 during any period when the restrictions set forth in such
proviso are in effect.

          SECTION 6.06. Limitation on Dividends. Declare or pay any dividends (other than
dividends payable solely in its Capital Stock or Capital Stock Equivalents) or return any capital
to its shareholders or make any other distribution, payment or delivery of property or cash to its
shareholders as such, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for
consideration, any shares of any class of its Capital Stock now or hereafter outstanding (or any
Capital Stock Equivalents), or permit any of the Restricted Subsidiaries to purchase or otherwise
acquire for consideration (other than in connection with an Investment permitted by Section 6.05
(except for any such Investment involving the purchase of Capital Stock of the Borrower from
shareholders of the Borrower)) any shares of any class of the Capital Stock of the Borrower, now or
hereafter outstanding (or any Capital Stock Equivalents) (all of the foregoing,
“Dividends”); provided, that so long as no Default or Event of Default exists or
would exist after giving effect thereto:

     (a) the Borrower may redeem in whole or in part any of its Capital Stock for another
class of Capital Stock or rights to acquire its Capital Stock or with proceeds from
substantially concurrent equity contributions or issuances of new shares of its Capital
Stock; provided that such other class of Capital Stock contains terms and
provisions at least as advantageous to the Lenders in all material respects as those
contained in the Capital Stock redeemed thereby;

     (b) the Borrower may repurchase shares of its Capital Stock (or any Capital Stock
Equivalents) held by current or former officers, directors and employees of the Borrower
and its Subsidiaries in an aggregate amount not to exceed $30,000,000 in the aggregate from
and after the Separation, so long as such repurchase is pursuant to, and in accordance with
the terms of, management and/or employee stock plans, stock subscription agreements,
employment agreements or shareholder agreements or termination agreements;

     (c) in addition to clause (d) below, the Borrower or any Restricted Subsidiary may
declare and make distributions or Dividends on its Capital Stock at any time or pay other
Dividends; provided that (i) the aggregate amount of all such distributions or
Dividends paid by the Borrower pursuant to this clause (c) shall not exceed the Available
Amount at the time of such distribution or Dividend and (ii) the Borrower and its
Restricted Subsidiaries would be in pro forma compliance with all Financial Covenants for
the most recent Test Period for which financial statements are publicly available after
giving effect to such distribution or Dividend;

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     (d) any Restricted Subsidiary may pay any Dividend (or, in the case of any partnership
or limited liability company, any similar distribution) to (i) any Loan Party or (ii) the
holders of its Equity Interests on a pro rata basis;

     (e) the Borrower may (i) make payments to holders of the Borrower’s Capital Stock in
lieu of the issuance of fractional shares of its Capital Stock; and (ii) honor any
conversion request by a holder of convertible Indebtedness and make cash payments in lieu
of fractional shares in connection with any such conversion and may make payments on
convertible Indebtedness in accordance with its terms;

     (f) the Borrower may enter into transactions for the purchase, redemption,
acquisition, cancellation or other retirement for a nominal value per right of any rights
granted to all the holders of Capital Stock of the Borrower pursuant to any shareholders’
rights plan adopted for the purpose of protecting shareholders from takeover tactics;
provided that any such purchase, redemption, acquisition, cancellation or other
retirement of such rights is not for the purpose of evading the limitations of this
covenant (all as determined in good faith by the Board of Directors of the Borrower);

     (g) the Borrower or any Restricted Subsidiary may pay any Dividend or distribution
within 60 days after the date of declaration thereof, if at the date of declaration such
payment would have complied with the provisions of this Agreement;

     (h) the Borrower or any Restricted Subsidiary may pay Dividends in an amount equal to
withholding or similar Taxes payable by any present or former employee, director, manager
or consultant (or their respective Affiliates, estates or immediate family members);

     (i) the Borrower or any Restricted Subsidiary may make payments, advances or loans (or
cancellation of loans), pursuant to employment and severance arrangements and health and
benefit plans or agreements between the Borrower and its Subsidiaries and their respective
officers, employees or consultants (including management and employee benefit plans or
agreements, stock option plans and other compensatory arrangements) in the ordinary course
of business;

     (j) the Borrower or any Restricted Subsidiary may make payments pursuant to tax
sharing agreements among the Borrower and/or its Subsidiaries on customary terms to the
extent attributable to the ownership or operation of the Borrower and/or its Subsidiaries;
and

     (k) the Borrower may redeem in whole or in part any of its preferred stock with
proceeds from substantially concurrent equity contributions or issuances of new shares of
its Capital Stock (other than Disqualified Stock);

     provided, however that (i) following the delivery of a blockage notice to the
Subsidiary Guarantors under the Senior Note Guarantees and any Funds Availability Indebtedness
Guarantees as provided in the Intercreditor Agreement and until such notice terminates as set forth
in the Intercreditor Agreement or has otherwise been rescinded or (ii) after the occurrence and
during the continuation of any payment default under any Designated Senior Indebtedness (as such
term is defined in the Senior Note Documents as in effect on the Funds Availability Date), no
dividend or distribution of any kind may be made pursuant to this Section 6.06 or otherwise,

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the proceeds of which would be used by the Borrower or any Restricted Subsidiary to pay any
obligations owing under the Senior Notes, any Funds Availability Indebtedness or any Senior Note
Guarantees or Funds Availability Indebtedness Guarantees.

          SECTION 6.07. Limitations on Debt Payments; Restrictive Agreements. (a) Make any
distribution, whether in cash, property, securities or a combination thereof, other than regularly
scheduled payments of principal, fees and interest as and when due (to the extent not prohibited by
applicable subordination provisions and whether or not such regularly scheduled payments may at the
obligor’s option be paid in kind or in other securities), in respect of, or pay, or offer or commit
to pay, or directly or indirectly redeem, repurchase, retire or otherwise acquire for
consideration, any Subordinated Indebtedness (other than intercompany Indebtedness of the Borrower
and the Subsidiaries), except (i) the incurrence of Permitted Refinancing Indebtedness (and the
payment of any interest, fees and premiums payable in respect of the principal being refinanced in
connection therewith), and (ii) any such payment or distribution in an aggregate amount not in
excess of the Available Amount at the time of such payment or distribution; or

          (b) Utilize the proceeds of the Loans to pay, redeem, repurchase, retire or otherwise acquire
for consideration any senior unsecured Indebtedness,

          (c) Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon the ability of the Borrower or any Restricted Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets in favor of the
Collateral Agent securing the Secured Obligations (it being understood that any agreement that
contains general prohibitions or restrictions on the existence of Liens but expressly permits Liens
in favor of the Collateral Agent securing the Secured Obligations shall not be prohibited or
otherwise limited by the covenant contained in this Section 6.07(c)); provided that the
foregoing shall not apply to:

     (i) restrictions and conditions imposed by Applicable Laws;

     (ii) customary restrictions and conditions contained in (A) agreements relating to the
purchase or sale of a Restricted Subsidiary or asset pending such purchase or sale and (B)
purchase money obligations for property acquired and Capital Lease Obligations that impose
restrictions on the property purchased or leased, in each case to the extent that such
restrictions and conditions apply only to the Restricted Subsidiary or asset that is to be
purchased or sold and such purchase or sale is permitted under this Agreement;

     (iii) restrictions or conditions in agreements or arrangements existing on the Funds
Availability Date and listed on Schedule 6.07(c), and any extensions, renewals,
amendments or modifications of such agreements or arrangements to the extent that such
restrictions or conditions are not expanded or otherwise made more restrictive than such
existing restrictions or conditions, in each case in any material respect;

     (iv) restrictions or conditions imposed by any agreement relating to any Indebtedness
incurred by a Restricted Subsidiary or otherwise encumbering property at the time of its
purchase and prior to the date on which such Restricted Subsidiary or such property was
acquired by the Borrower or another Restricted Subsidiary if such conditions or
restrictions relate only to the property or assets of such Restricted Subsidiary and its
subsidiaries or such acquired property (provided that such restrictions

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or conditions are not created in contemplation of or in connection with such Person
becoming a Restricted Subsidiary or such property being acquired), and any extensions,
renewals, amendments or modifications thereto that do not expand or otherwise make such
existing restrictions or conditions more restrictive, in each case in any material respect;

     (v) restrictions in connection with sale and leaseback transactions permitted by
Section 6.03, but only with respect to the assets subject to such transactions;

     (vi) customary provisions in joint venture, stockholder, membership, limited liability
company or partnership agreements or organizational documents relating to joint ventures or
partnerships or owners and customary provisions (including negative pledges) in leases,
licenses, permits and other contracts restricting the assignment, disposition or
distribution thereof (whether for collateral purposes or otherwise) or otherwise
restricting or affecting the property subject thereto (provided that the Borrower
or applicable Restricted Subsidiary has complied with its obligation under Section 5.15 to
use commercially reasonable efforts to eliminate such restriction);

     (vii) any negative pledge in favor of the holder of a Permitted Lien on the property
subject to such Permitted Lien and any negative pledge on any accounts receivable, payment
intangibles, instruments or other similar rights to payment from a counterparty;

     (viii) customary non-assignment provisions in contracts, agreements, leases, permits
and licenses;

     (ix) restrictions on cash or other deposits imposed by customers under contracts
entered into in connection with the Permitted Business; and

     (x) customary restrictions or conditions contained in any netting, operating,
construction, service, supply, purchase or sale agreements to which the Borrower or any
Restricted Subsidiary enters into in connection with the Permitted Business;
provided that such agreement prohibits the encumbrance or transfer of solely the
property or assets of the Borrower or such Restricted Subsidiary that are the subject of
that agreement, the payment rights arising thereunder and/or the proceeds thereof and not
of any other asset or property of the Borrower or such Restricted Subsidiary or the assets
or property of any other Restricted Subsidiary.

          (d) Directly or indirectly, create or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary to (i) pay dividends or make
any other distributions on its Capital Stock to the Borrower or any of its Restricted Subsidiaries,
or with respect to any other interest or participation in, or measured by, its profits, or pay any
Indebtedness owed to the Borrower or any of its Restricted Subsidiaries; (ii) make loans or
advances to the Borrower or any of its Restricted Subsidiaries; or (iii) transfer any of its
properties or assets to the Borrower or any of its Restricted Subsidiaries (except restrictions
encumbering property at the time such property was acquired by the Borrower or any of its
Restricted Subsidiaries, so long as such restriction relates solely to the property so acquired and
was not created in connection with or in anticipation of such acquisition). The restrictions in
this Section 6.07(d) will not apply to encumbrances or restrictions existing under or by reason of:

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     (A) any Indebtedness permitted under Section 6.01, including, without
limitation, (x) the Senior Notes and Funds Availability Indebtedness (in each case,
as in effect on the Funds Availability Date) and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of those agreements permitted under this Agreement; provided
that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are no more restrictive,
taken as a whole, with respect to restrictions described in clauses (d)(i) through
(iii) above than those contained in the applicable Separation Financing Documents
on the Funds Availability Date, (y) purchase money obligations for property
acquired and Capital Lease Obligations that impose restrictions on the property
purchased or leased and any agreement for the sale or other disposition of the
stock or assets of a Restricted Subsidiary that restricts distributions by that
Restricted Subsidiary pending the sale or other disposition; provided, in
each case, to the extent that such restrictions apply only to the property or
Restricted Subsidiary that is to be purchased or sold, and that such purchase or
sale or other disposition is otherwise permitted under this Agreement and (z)
Permitted Refinancing Indebtedness; provided that the restrictions
contained in the agreements governing such Permitted Refinancing Indebtedness are
no more restrictive, taken as a whole, than those contained in the agreements
governing the Indebtedness being refinanced;

     (B) any Loan Document;

     (C) restrictions and conditions imposed by Applicable Laws;

     (D) customary non-assignment provisions in contracts, agreements, leases,
permits and licenses;

     (E) Liens permitted to be incurred under the provisions of Section 6.02 that
limit the right of the debtor to dispose of the assets subject to such Liens;

     (F) asset sale agreements, sale-leaseback agreements, stock sale agreements
and other similar agreements, which limitation is applicable only to the assets
that are the subject of such agreements;

     (G) any instrument governing Capital Stock of (x) a Restricted Subsidiary
existing at the time it became a Restricted Subsidiary or (y) a Person acquired by
the Borrower or any of its Restricted Subsidiaries as in effect at the time of such
acquisition (except, in each case, to the extent such Capital Stock was incurred in
connection with or in contemplation of such acquisition or transaction or series of
transactions pursuant to which the Restricted Subsidiary became a Restricted
Subsidiary), which encumbrance or restriction is not applicable to any Person, or
the properties or assets of any Person, other than the Person, or the property or
assets of the Person, so acquired;

     (H) restrictions on cash or other deposits imposed by customers under
contracts entered into in connection with the Permitted Business; and

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     (I) customary restrictions or conditions contained in any netting, operating,
construction, service, supply, purchase or sale agreements to which the Borrower or
any Restricted Subsidiary enters into in connection with the Permitted Business;
provided that such agreement prohibits the encumbrance or transfer of
solely the property or assets of the Borrower or such Restricted Subsidiary that
are the subject of that agreement, the payment rights arising thereunder and/or the
proceeds thereof and not of any other asset or property of the Borrower or such
Restricted Subsidiary or the assets or property of any other Restricted Subsidiary;

     (J) any encumbrance or restriction of the type referred to in clauses (i),
(ii) or (iii) of this Section 6.07(d) (except to the extent that any of clauses (A)
through (I) of this Section 6.07(d) refers or applies only to certain of such
clauses (i), (ii) or (iii), and, in such case, only to such applicable clause),
imposed by any amendments, modifications, restatements, renewals, increases,
supplements, or replacements of the contracts, instruments or obligations referred
to in clauses (A) through (I) of this Section 6.07(d); provided that such
amendments, modifications, restatements, renewals, increases, supplements,
replacements or refinancings are, when taken as a whole, in the good faith judgment
of a Financial Officer of the Borrower, no more restrictive with respect to such
dividend and other payment restrictions than those contained in the dividend or
other payment restrictions prior to such amendment, modification, restatement,
renewal, increase, supplement or replacement.

          SECTION 6.08. Transactions with Affiliates. (a) Make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract, agreement, understanding,
loan, advance or guarantee with, or for the benefit of, any Affiliate of the Borrower other than as
excluded pursuant to Section 6.08(b) (each, an “Affiliate Transaction”), unless (i) the
Affiliate Transaction is on terms that are no less favorable to the Borrower (as reasonably
determined by the Borrower) or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Borrower or such Restricted Subsidiary with an
unrelated Person; and (ii) the Borrower delivers to the Administrative Agent with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration
in excess of $50,000,000, a resolution of the Board of Directors of the Borrower attached to an
officers’ certificate certifying that such Affiliate Transaction complies with clause (i) of this
Section and that such Affiliate Transaction has been approved by a majority of the disinterested
members of such Board of Directors.

          (b) The following items shall not constitute Affiliate Transactions and, therefore, will not
be subject to the provisions of this Section:

     (i) any employment agreement or director’s engagement agreement, employee benefit
plan, officer and director indemnification agreement or any similar arrangement entered
into by the Borrower or any of its Restricted Subsidiaries in the ordinary course of
business or approved by the Board of Directors of the Borrower in good faith;

     (ii) transactions between or among the Loan Parties;

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     (iii) payment of reasonable fees and other compensation to directors who are not
otherwise Affiliates of the Borrower;

     (iv) Investments or Dividends that do not violate Section 6.05 or 6.06 hereof;

     (v) transactions permitted by, and complying with, the provisions of Section 6.04(a);

     (vi) agreements in effect as of the Funds Availability Date that are set forth on
Schedule 6.08(b) and amendments thereto or replacements thereof, so long as any
such amendment or replacement agreement taken as a whole is not materially more
disadvantageous to the Borrowers and its Restricted Subsidiaries than such existing
agreement as determined in good faith by the Borrower; provided, however,
that any amendments to a Key Contract shall comply with Section 5.15;

     (vii) posting of Letters of Credit issued hereunder (subject, where applicable, to
Section 6.05(j)), or letters of credit issued pursuant to other financing facilities to
support the obligations of any Excluded Subsidiary or of EquaGen or any of its
subsidiaries;

     (viii) any tax sharing agreement between or among the Borrower and its Subsidiaries so
long as such tax sharing agreement is on fair and reasonable terms with respect to each
participant therein (as determined in good faith by senior management of the Borrower at
the time such agreement is entered into); and

     (ix) any agreement to do any of the foregoing.

          SECTION 6.09. Business Activities. Enter into any business, either directly or
through any Restricted Subsidiary, except for the Permitted Business. Notwithstanding the
foregoing, the NY Real Property Subsidiaries shall engage solely in the business such NY Real
Property Subsidiaries were engaged in on the Funds Availability Date.

          SECTION 6.10. Other Indebtedness and Agreements. (a) Effect any waiver, supplement,
modification, amendment, termination or release of any indenture, instrument or agreement in
respect of any Material Indebtedness to effectively refinance such Material Indebtedness if such
refinancing would have been prohibited by the definition of Permitted Refinancing Indebtedness or
otherwise prohibited under this Agreement;

          (b) Amend its Constituent Documents, except for changes and amendments that do not materially
adversely affect the interests of the Senior Secured Parties under the Loan Documents or in the
Collateral; and

          (c) Modify, alter, amend, extend, renew, replace, knowingly waive strict and timely
performance of any compliance with (including waiving any default under), terminate, cancel,
suspend or assign any Material Contract or any term, agreement, provision, item, obligation or
covenant contained in any Material Contract, if to do so could reasonably be expected to have a
Material Adverse Effect.

          SECTION 6.11. Designation of Restricted, Unrestricted and Immaterial Subsidiaries.
The Board of Directors of the Borrower (or any committee expressly authorized by

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the Board of Directors of the Borrower) may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary or an Immaterial Subsidiary, in accordance with the definitions thereof, if
such designation would not cause a Default or Event of Default. If a Restricted Subsidiary, newly
acquired Subsidiary or newly formed Subsidiary is designated as an Unrestricted Subsidiary or an
Immaterial Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the
Borrower and its Restricted Subsidiaries in the Subsidiary designated as an Unrestricted Subsidiary
or an Immaterial Subsidiary will be deemed to be an Investment made as of the time of the
designation and will reduce the amount available for Investments under Section 6.05(j). Such
designation will only be permitted if the Investment would be permitted at that time and if the
Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary or Immaterial
Subsidiary, as applicable. The Board of Directors of the Borrower may redesignate any Unrestricted
Subsidiary or Immaterial Subsidiary to be a Restricted Subsidiary if such redesignation would not
cause a Default or Event of Default.

          SECTION 6.12. Consolidated Interest Coverage Ratio. Permit the Consolidated Interest
Coverage Ratio as of the last day of any Test Period ending during any period set forth below to be
less than the ratio set forth opposite such period below:

	 	 	 	 	 
	Period	 	Ratio
	Funds Availability Date to the Revolving Credit
	 	 	 	 
	Maturity Date
	 	 	1.5 to 1.0	 

     SECTION 6.13. Consolidated Total Leverage Ratio. Permit the Consolidated Total
Leverage Ratio as of the last day of any Test Period ending during any period set forth below to be
greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Period	 	Ratio
	Funds Availability Date to the Revolving Credit
	 	 	 	 
	Maturity Date
	 	 	5.0 to 1.0	 

          SECTION 6.14. Fiscal Year. With respect to the Borrower, change its fiscal year-end
to a date other than December 31; provided, however, that the Borrower may, upon
written notice to the Administrative Agent, change the financial reporting convention specified
above to any other financial reporting convention reasonably acceptable to the Administrative
Agent, in which case the Borrower and the Administrative Agent will, and are hereby authorized by
the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such
change in financial reporting, provided, that with respect to any such change that delays
the fiscal year-end, the Borrower shall deliver financial information required by Section 5.05(b)
for all intervening fiscal quarters, including the fiscal quarter that was formerly the year-end.

          SECTION 6.15. No Speculative Hedging Transactions. Neither the Borrower nor any
Restricted Subsidiary shall engage in any speculative Hedging Transactions except (i) as set forth
in the definition of Commodity Hedging Transactions and (ii) Interest Rate Hedging Transactions and
Currency Hedging Transactions for the sole purpose of hedging in the normal course of the Permitted
Business. For the avoidance of doubt, the determination as to whether or not a Hedging Transaction
is speculative shall be made as of the date such Hedging Transaction is entered into by the
Borrower or the applicable Restricted Subsidiary.

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          SECTION 6.16. Specified Commodity Hedging Transactions. (a) So long as any Specified
Commodity Hedging Transaction is secured by the Collateral Agent’s Lien on the Collateral, provide
any Credit Support Facilities or arrange for Credit Support Facilities with respect to such
Specified Commodity Hedging Transaction.

          (b) For so long as the Intercreditor Agreement is in effect, following the occurrence and
during the continuation of a payment “Default” or an “Event of Default” under one or more “Series
of Secured Obligations” that constitute “Material Indebtedness” (as each such term is defined in
the Intercreditor Agreement), make any payment (other than Ordinary Course Settlement Payments (as
such term is defined in the Intercreditor Agreement)) under any Specified Commodity Hedging
Transaction, which payment is prohibited under the Intercreditor Agreement.

ARTICLE VII

Events of Default

          SECTION 7.01. Signing Date Events of Default. From and after the Signing Date and
until the earlier of (i) the Funds Availability Date and (ii) the Outside Date, each of the
following shall be an Event of Default hereunder:

     (a) any representation or warranty made or deemed made in or in connection with any
Loan Document, or any representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished in connection with
or pursuant to any Loan Document by any Loan Party, shall prove to have been false or
misleading in any material respect when so made, deemed made or furnished;

     (b) default in the payment of any interest or any fee or any other amount due under
any Loan Document, when and as the same shall become due and payable, and such default
shall continue unremedied for a period of five (5) Business Days;

     (c) default in the due observance or performance by the Borrower or any Restricted
Subsidiary of any covenant, condition or agreement contained in (i) Section 1.01 of Annex V
or (ii) Sections 1.03, 1.04 and 1.06 of Annex VI;

     (d) default in the due observance or performance by the Borrower or any Restricted
Subsidiary of any covenant, condition or agreement contained in any Loan Document (other
than those specified in clauses (b) or (c) above) and such default shall continue
unremedied for a period of 30 days after the earlier of (a) notice thereof from the
Administrative Agent, the Collateral Agent or any Lender to the Borrower and (b) the date
when a Responsible Officer of the Borrower becomes aware of such default;

     (e) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against the Borrower or any of its Restricted Subsidiaries in an
involuntary case; (ii) appoints a custodian of the Borrower or any of its Restricted
Subsidiaries or for all or substantially all of the property of the Borrower or any of its
Restricted Subsidiaries; or (iii) orders the liquidation of the Borrower or any of

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its Restricted Subsidiaries; and, in each of clauses (i), (ii) or (iii), the order or
decree remains unstayed and in effect for 60 consecutive days; or

     (f) the Borrower or any of its Restricted Subsidiaries, pursuant to or within the
meaning of Bankruptcy Law (i) commences a voluntary case; (ii) consents to the entry of an
order for relief against it in an involuntary case; (iii) consents to the appointment of a
custodian of it or for all or substantially all of its property; (iv) makes a general
assignment for the benefit of its creditors; or (v) generally is not paying its debts as
they become due.

          SECTION 7.02. Funds Availability Date Events of Default. From and after the Funds
Availability Date, each of the following shall be an Event of Default hereunder:

     (a) any representation or warranty made or deemed made in or in connection with any
Loan Document or the Borrowings or issuances of Letters of Credit hereunder, or any
representation, warranty, statement or information contained in any report, certificate,
financial statement or other instrument furnished in connection with or pursuant to any
Loan Document by any Loan Party, shall prove to have been false or misleading in any
material respect when so made, deemed made or furnished;

     (b) default in the payment of any principal of any Loan when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or by acceleration thereof or otherwise;

     (c) default in the payment of any interest on any Loan or any Fee or any other amount
(other than an amount referred to in clause (b) above) due under any Loan Document, when
and as the same shall become due and payable, and such default shall continue unremedied
for a period of five (5) Business Days;

     (d) default in the due observance or performance by the Borrower or any Restricted
Subsidiary of any covenant, condition or agreement contained in Sections 5.01, (solely with
respect to the Borrower or Core Asset Subsidiaries, EquaGen (to the extent it is a
Subsidiary of the Borrower) and Enexus Power Marketing, LLC), 5.06 or 5.09 or in Article
VI;

     (e) default in the due observance or performance by the Borrower or any Restricted
Subsidiary of any covenant, condition or agreement contained in any Loan Document (other
than those specified in clauses (b), (c) or (d) above) and such default shall continue
unremedied for a period of 30 days after the earlier of (a) notice thereof from the
Administrative Agent, the Collateral Agent or any Lender to the Borrower and (b) the date
when a Responsible Officer of the Borrower becomes aware of such default;

     (f) the Borrower or any Restricted Subsidiary shall in respect of any Material
Indebtedness: (i) fail to pay any principal or interest (regardless of amount due) when and
as the same shall become due and payable (after giving effect to any applicable grace
period) or (ii) suffer the occurrence of any other event (including an Early Termination
Event (as defined in the Intercreditor Agreement)) or condition that results in such
Material Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (with or without the giving of notice, the lapse of time or both) the holder or
holders of such Indebtedness or any trustee or agent on its or their behalf to

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cause such Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided that
this sub-clause (ii) shall not apply to secured Indebtedness that becomes due as a result
of a sale or transfer of the property or assets securing such Indebtedness that is
permitted under this Agreement;

     (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against the Borrower or any of its Restricted Subsidiaries in an
involuntary case; (ii) appoints a custodian of the Borrower or any of its Restricted
Subsidiaries or for all or substantially all of the property of the Borrower or any of its
Restricted Subsidiaries; or (iii) orders the liquidation of the Borrower or any of its
Restricted Subsidiaries; and, in each of clauses (i), (ii) or (iii) above, the order or
decree remains unstayed and in effect for 60 consecutive days;

     (h) the Borrower or any of its Restricted Subsidiaries, pursuant to or within the
meaning of Bankruptcy Law (i) commences a voluntary case; (ii) consents to the entry of an
order for relief against it in an involuntary case; (iii) consents to the appointment of a
custodian of it or for all or substantially all of its property; (iv) makes a general
assignment for the benefit of its creditors; or (v) generally is not paying its debts as
they become due;

     (i) one or more judgments for the payment of money in an aggregate amount in excess of
$100,000,000 (excluding therefrom any amount covered by insurance) shall be rendered
against the Borrower or any Restricted Subsidiary or any combination thereof and the same
shall remain undischarged for a period of 60 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment creditor to
levy upon assets or properties of the Borrower or any of its Restricted Subsidiaries to
enforce any such judgment;

     (j) an ERISA Event shall have occurred that, when taken together with all other such
ERISA Events, could reasonably be expected to result in liability of the Borrower and its
ERISA Affiliates in an aggregate amount exceeding $100,000,000;

     (k) except as permitted by this Agreement or as a result of the discharge of such Loan
Party in accordance with the terms of the Loan Documents, (i) any Guarantee under the
Guarantee and Collateral Agreement shall be held by a final decision issued in any judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be in full force
and effect, (ii) any Loan Party shall assert in writing that any provision of any Loan
Document after delivery thereof for any reason fails or ceases to be valid and binding on,
or enforceable against, any Loan Party party thereto or (iii) any Security Document shall
for any reason (other than pursuant to a failure of any Agent, Lender or any agent
appointed thereby to take any action within the sole control of such Persons) fail or cease
to create a valid and enforceable Lien on any Collateral with a value greater than
$50,000,000 purported to be covered thereby or, except as permitted by the Loan Documents,
such Lien shall fail or cease to be a perfected and first priority Lien (subject to any
prior Permitted Liens), or any Loan Party shall so state in writing; or

     (l) there shall have occurred a Change of Control.

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          SECTION 7.03. Remedies. (a) From and after the Signing Date and prior to the Funds
Availability Date, during the continuance of any Event of Default, the Administrative Agent may,
and, at the request of the Required Lenders, shall, by notice to the Borrower (i) declare that all
or any portion of the Commitments be terminated and (ii) declare fees or other amounts that have
accrued to be forthwith due and payable, whereupon such accrued fees and other amounts shall become
and be forthwith due and payable, without presentment, demand, protest or further notice of any
kind, all of which are hereby expressly waived by the Borrower; provided, however,
that upon the occurrence of the Events of Default with respect to the Borrower or any Restricted
Subsidiary specified in Sections 7.01(e) or 7.01(f), (A) the Commitments of each Lender shall each
automatically be terminated and (B) all such accrued fees and other amounts shall automatically
become and be due and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by the Borrower. In addition to the remedies set forth above,
the Administrative Agent may exercise any remedies provided for by Applicable Law.

          (b) From and after the Funds Availability Date, during the continuance of any Event of
Default, the Administrative Agent (i) with the consent of the Required Lenders may, and, at the
request of the Required Lenders, shall, by notice to the Borrower declare that all or any portion
of the Commitments be terminated, whereupon the obligation of each Lender to make any Loan and each
Issuer to Issue any Letter of Credit shall immediately terminate and (ii) with the consent of the
Required Lenders may and, at the request of the Required Lenders, shall, by notice to the Borrower,
declare the Loans, all interest thereon and all other amounts and Secured Obligations payable under
this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such
amounts and such Secured Obligations shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that upon the occurrence of the Events
of Default specified in Sections 7.02(g) or 7.02(h), with respect to the Borrower or any other Loan
Party (A) the Commitments of each Lender to make Loans and the commitments of each Lender and
Issuer to Issue or participate in Letters of Credit shall each automatically be terminated and (B)
the Loans, all such interest and all such amounts and such Secured Obligations shall automatically
become and be due and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by the Borrower. In addition to the remedies set forth above,
the Administrative Agent may exercise any remedies provided for by the Security Documents in
accordance with the terms thereof or any other remedies provided for by Applicable Law.

          SECTION 7.04. Application of Funds. Without limitation of, and after giving effect
to, Section 6.7 of the Guarantee and Collateral Agreement and Section 3.5 of the Intercreditor
Agreement, all proceeds received by the Administrative Agent or the Collateral Agent or any other
Person in respect of any sale of, collection from, or other realization upon all or any part of the
Collateral under any Security Document shall be held by the Administrative Agent or the Collateral
Agent as Collateral for, and applied in full or in part by the Administrative Agent or the
Collateral Agent against, the applicable Secured Obligations arising hereunder then due and owing
as set forth in Section 2.13(g).

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ARTICLE VIII

The Agents and the Arrangers

          SECTION 8.01. Authorization and Action. (a) Each Lender and each Issuer hereby
irrevocably (and each holder of any Note by its acceptance of such Note shall be deemed to) appoint
the Administrative Agent as its agent and authorize the Administrative Agent to take such actions
on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms
of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.
The Administrative Agent hereby accepts such appointment and hereby agrees to act in such capacity.
Without limiting the generality of the foregoing, the Administrative Agent is hereby expressly
authorized by the Lenders, the Issuers and each holder of each Note to execute any and all
documents (including releases and the Intercreditor Agreement) with respect to the Collateral and
the rights of the Senior Secured Parties with respect thereto, and to appoint the Collateral Agent
as their agents in respect of the Intercreditor Agreement and the other Security Documents, in each
case as contemplated by and in accordance with the provisions of this Agreement and the Security
Documents. Each Lender, each Issuer and each holder of each Note hereby agrees to be bound by the
priority of the security interests and allocation of the benefits of the Collateral and proceeds
thereof set forth in the Security Documents. Each Lender, each Issuer and each holder of each Note
hereby authorizes the Administrative Agent in its capacity as such to act as its Secured
Obligations Representative for purposes of the Intercreditor Agreement. The Administrative Agent
in its capacity as Secured Obligations Representative is hereby expressly authorized and directed
by each Lender, each Issuer and each holder of each Note to execute the Intercreditor Agreement and
the other Security Documents (and any other documents contemplated thereby) on behalf of the
Lenders, the Issuers and the holders of Notes on the Signing Date and from and after the Funds
Availability Date, as applicable.

          (b) As to any matters not expressly provided for by this Agreement and the other Loan
Documents (including enforcement or collection), neither the Agents nor the Arrangers shall be
required to exercise any discretion or take any action, but shall be entitled to act or to refrain
from acting (and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding upon all Lenders, each
Issuer and each holder of each Note; provided, however, that neither Agent nor
either Arranger shall be required to take any action that it in good faith believes exposes it to
personal liability unless such Agent or such Arranger receives an indemnification satisfactory to
it from the Lenders and the Issuers with respect to such action or (ii) is contrary to this
Agreement or Applicable Law. If the Administrative Agent or the Arrangers request instructions
from the Required Lenders with respect to any act or action (including failure to act) in
connection with this Agreement or any other Loan Document, the Administrative Agent and the
Arrangers shall be entitled to refrain from such act or taking such action unless and until the
Administrative Agent and the Arrangers shall have received instructions from the Required Lenders;
and the Administrative Agent shall not incur liability to any Lender by reason of so refraining.
Without limiting the foregoing, no Lender, Issuer or the holder of any Note shall have any right of
action whatsoever against the Administrative Agent or either Arranger as a result of the
Administrative Agent or such Arranger acting or refraining from acting hereunder or under any other
Credit Document in accordance with the instructions of the Required Lenders. The Agents agree to
give to each Lender and each Issuer prompt notice of each notice given to it by the other Agent,
the

117

 

Arrangers or any Loan Party pursuant to the terms of this Agreement or the other Loan
Documents.

          (c) In performing its functions and duties hereunder and under the other Loan Documents, the
Administrative Agent and the Arrangers are acting solely on behalf of the Lenders and the Issuers,
except in the case of the Administrative Agent with respect to the limited extent it acts as an
agent of the Borrower in maintaining the Register provided for in Section 9.04(d), and its duties
are entirely administrative in nature. Neither the Administrative Agent nor the Arrangers assume,
and none of them shall be deemed to have assumed, any obligation other than as expressly set forth
herein and in the other Loan Documents or any other relationship as the agent, fiduciary or trustee
of or for any Lender, Issuer, holder of any Note or holder of any other Secured Obligation. The
Administrative Agent and the Arrangers may perform any of its duties under any Loan Document by or
through its agents or employees.

          (d) Each Agent and each Arranger may perform any and all of its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by it. Each Agent, each Arranger and
any such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this Article VIII shall
apply to any such sub-agent and to the Related Parties of each Agent, each Arranger and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as their activities as Agent or Arranger.

          (e) The Syndication Agent shall not have obligations or duties whatsoever in such capacity
under this Agreement or any other Loan Document and shall incur no liability hereunder or
thereunder in such capacity.

          SECTION 8.02. Obligation of Arrangers. Notwithstanding anything to the contrary
contained in this Agreement or in any other Loan Document, it is understood and agreed that, with
respect to any agreement, instrument, certificate or any other document or information delivered or
required to be delivered to the Arrangers and/or the Administrative Agent on or prior to the Funds
Availability Date (other than any Borrowing Request required pursuant to Section 2.02(a) or any
Letter of Credit Request required pursuant to Section 2.03(c)) and any action taken or required to
be taken by the Borrower or any of its Subsidiaries prior to or on the Funds Availability Date (i)
each Lender irrevocably authorizes the Arrangers to determine the conformity of any such document
or action (or the failure to take such action) with the requirements of this Agreement or such Loan
Document, and the Administrative Agent shall have no obligations or duties hereunder or under any
other Loan Document (and shall incur no liability) with respect thereto and (ii) the provisions of
this Section 8 (other than Section 8.01(a)) shall apply, mutatis mutandis, to each of the Arrangers
acting in such capacity; provided, that prior to and on the Funds Availability Date neither
Arranger shall have any liability except as expressly set forth in the first sentence of Section
8.03 below, and provided, further that after the Funds Availability Date (x)
neither Arranger shall have any obligations or duties whatsoever in such capacity under this
Agreement or any other Loan Document and (y) neither Arranger shall incur any liability hereunder
or thereunder in such capacity.

          SECTION 8.03. Agents’ Reliance, Etc. (a) None of the Agents, the Arrangers or any of
their Affiliates or any of their respective directors, officers, agents or employees shall be
liable for any action taken or omitted to be taken by it, him, her or them under or in connection
with this Agreement or the other Loan Documents, except for its, his, her or their own gross

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negligence or willful misconduct (as determined by a court of competent jurisdiction in a
final and non-appealable decision). Without limiting the foregoing, (i) the Agents may treat the
payee of any Note as its holder until such Note has been assigned in accordance with Section 9.04
(and any request, authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note or of any
Note or Notes issued in exchange therefor), (ii) the Agents may rely on the Register to the extent
set forth in Section 9.04, (iii) the Agents and the Arrangers may consult with legal counsel
(including counsel to the Borrower or any other Loan Party), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts, (iv)
neither the Agents nor the Arrangers make any warranty or representation to any Lender or Issuer
and none of them shall be responsible to any Lender or Issuer for any statements, recitals,
information, warranties or representations made by or on behalf of any Loan Party in, or in
connection with, this Agreement, any other Loan Document or in any document, certificate or other
writing delivered in connection herewith or therewith, (v) neither the Agents nor the Arrangers
shall be deemed to have knowledge of any Default or Event of Default unless and until written
notice thereof is given to such Agent or such Arranger by a Borrower or a Lender, (vi) neither
Agent nor the Arranger shall have any duty to ascertain or to inquire either as to the performance
or observance of any term, covenant or condition of this Agreement or any other Loan Document, as
to the financial condition of any Loan Party or as to the existence, or possible existence, of any
Default or Event of Default, (vii) neither Agent nor the Arrangers shall be responsible to any
Lender, Issuer, holder of any Note or holder of any other Secured Obligation for the due execution,
legality, validity, enforceability, genuineness, collectibility, sufficiency or value of, or the
attachment, perfection or priority of any Lien created or purported to be created under or in
connection with, this Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto or thereto, (viii) neither Agent nor the Arrangers shall have a duty to
confirm the satisfaction of any condition set forth in Article IV or elsewhere in any Loan
Document, other than to confirm receipt of items expressly required to be delivered to such Agent
and (ix) neither Agent nor the Arrangers shall incur any liability under or in respect of this
Agreement or any other Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which writing may be a telecopy or electronic mail) or any telephone message
believed by it to be genuine and signed or sent by the proper party or parties.

          (b) Each Agent and each Arranger shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed or sent by the
proper Person. Each Agent and each Arranger may also rely upon any statement made to it orally or
by telephone and believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. Each Agent and each Arranger may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts.

          SECTION 8.04. Posting of Approved Electronic Communications. (a) Each of the Lenders,
the Issuers and each Loan Party agree that the Agents (and, if applicable, the Arrangers) may, but
shall not be obligated to, make the Approved Electronic Communications available to the Lenders,
Issuers and prospective assignees, participants or other transferees by posting such Approved
Electronic Communications on IntraLinksTM or a substantially similar

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electronic platform chosen by the Administrative Agent to be its electronic transmission
system (the “Approved Electronic Platform”).

          (b) Although the Approved Electronic Platform and its primary web portal are secured with
generally-applicable security procedures and policies implemented or modified by the Administrative
Agent from time to time (including, as of the Funds Availability Date, a dual firewall and a User
ID/Password Authorization System) and the Approved Electronic Platform is secured through a
single-user-per-deal authorization method whereby each user may access the Approved Electronic
Platform only on a deal-by-deal basis, each of the Lenders, the Issuers and each Loan Party
acknowledges and agrees that the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated with such
distribution. In consideration for the convenience and other benefits afforded by such
distribution and for the other consideration provided hereunder, the receipt and sufficiency of
which is hereby acknowledged, each of the Lenders, the Issuers and each Loan Party hereby approves
distribution of the Approved Electronic Communications through the Approved Electronic Platform and
understands and assumes the risks of such distribution.

          (c) The Approved Electronic Platform and the Approved Electronic Communications
are provided “as is” and “as available”. None of the Administrative Agent or any of its affiliates
or any of their respective officers, directors, employees, agents, advisors or representatives (the
“Agent Affiliates”) warrant the accuracy, adequacy or completeness of the Approved
Electronic Communications or the Approved Electronic Platform and each expressly disclaims
liability for errors or omissions in the Approved Electronic Platform and the Approved Electronic
Communications. No warranty of any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of
third party rights or freedom from viruses or other code defects, is made by the Agent Affiliates
in connection with the approved electronic platform or the Approved Electronic Communications.

          (d) Each of the Lenders, the Issuers and each Loan Party agree that the Administrative Agent
(and, if applicable, the Arrangers) may, but (except as may be required by Applicable Law) shall
not be obligated to, store the Approved Electronic Communications on the Approved Electronic
Platform in accordance with the Administrative Agent’s (or such Arranger’s) generally-applicable
document retention procedures and policies.

          SECTION 8.05. The Agents Individually. Each bank serving as an Agent or Arranger
hereunder shall have the same rights and powers in its capacity as a Lender or Issuer as any other
Lender or Issuer and may exercise the same as though it were not an Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any kind of business
with the Borrower or any Subsidiary or any Affiliate thereof as if it were not an Agent or Arranger
hereunder, and may accept fees from the Borrower or any Subsidiary or Affiliate thereof for
services in connection with this Agreement and otherwise without having to account for the same to
the Lenders. The terms “Lenders”, “Required Lenders” and any similar terms shall, unless the
context clearly otherwise indicates, include, without limitation, each Agent and each Arranger in
its individual capacity as a Lender or as one of the Required Lenders.

          SECTION 8.06. Lender Credit Decision. Each Lender, each Issuer and the holder of each
Note acknowledges that it has, independently and without reliance upon the

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Agents, the Arrangers or any other Lender, conducted its own independent investigation of the
financial condition and affairs of the Borrower and each other Loan Party in connection with the
making and continuance of the Loans and with the issuance of the Letters of Credit and has made its
own credit analysis and decision to enter into this Agreement. Each Lender, each Issuer and the
holder of each Note also acknowledges that it shall, independently and without reliance upon the
Agents, the Arrangers or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement and other Loan Documents. Except for the documents expressly required
by any Loan Document to be transmitted by the Agents or the Arrangers to the Lenders or the
Issuers, neither the Agents nor the Arrangers shall have any duty or responsibility (either
initially or on a continuing basis) to provide any Lender, any Issuer or the holder of any Note
with any credit or other information concerning the business, prospects, operations, property,
financial or other condition or creditworthiness of any Loan Party or any Affiliate of any Loan
Party that may come into the possession of the Agents, the Arrangers or any of their respective
Affiliates or any employee or agent of any of the foregoing.

          SECTION 8.07. Indemnification. Each Lender agrees to indemnify each Arranger, each
Agent and each of its Affiliates and agents and their respective directors, officers, employees,
agents and advisors (collectively, “Indemnified Persons”) from and against such Lender’s
aggregate Ratable Portion (determined at the time such indemnity is sought, it being understood and
agreed that if the Revolving Credit Termination Date shall have occurred, such determination shall
be made immediately prior to giving effect thereto) of any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements (including
fees, expenses and disbursements of financial and legal advisors) of any kind or nature whatsoever
that may be imposed on, incurred by, or asserted against, such Indemnified Persons in any way
relating to, or arising out of, this Agreement or the other Loan Documents or any action taken or
omitted by such Indemnified Persons under this Agreement or the other Loan Documents;
provided, however, that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from any Indemnified Persons’ gross negligence or willful misconduct.
Without limiting the foregoing, each Lender agrees to reimburse the applicable Indemnified Person
promptly upon demand for its Ratable Portion (determined at the time such reimbursement is sought,
it being understood and agreed that if the Revolving Credit Termination Date shall have occurred,
such determination shall be made immediately prior to giving effect thereto) of any out-of-pocket
expenses (including reasonable fees, expenses and disbursements of financial and legal advisors)
incurred by Indemnified Person in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of its rights or responsibilities under,
this Agreement or the other Loan Documents, to the extent that such Agent or such Arranger is not
reimbursed for such expenses by the Borrower or another Loan Party pursuant to Section 9.05 or
other indemnity provisions in any Loan Document.

          SECTION 8.08. Successor Administrative Agent. The Administrative Agent may resign at
any time by giving 30 days’ prior written notice thereof to the Lenders and the Borrower (and may
be removed by Required Lenders if it is a Defaulting Lender). Unless otherwise agreed by the
resigning Administrative Agent, any such resignation by the Administrative Agent hereunder shall
also constitute its resignation as an Issuer in accordance with the provisions Section 2.03(l).
Upon any such resignation or removal, the Required Lenders shall have the right to appoint a
successor Administrative Agent. If no successor Administrative

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Agent shall have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 20 days after such retiring Administrative Agent’s giving of notice of
resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent, selected from among the Lenders. In either case, such appointment
shall be subject to the prior written approval of the Borrower (which approval may not be
unreasonably withheld and shall not be required upon the occurrence and during the continuance of
an Event of Default). If no successor Administrative Agent has been appointed pursuant to the
preceding sentences by the 30th day after the date of such retiring Administrative Agent’s notice
of resignation, the Administrative Agent’s resignation shall become effective and the Required
Lenders shall thereafter perform all the duties of the Administrative Agent hereunder and/or under
any other Credit Document until such time, if any, as the Required Lenders appoint a successor
Administrative Agent (which appointment shall be subject to the prior written approval of the
Borrower (such approval not to be unreasonably withheld) unless an Event of Default has occurred
and is continuing). Upon the acceptance of any appointment as Administrative Agent by a successor
Administrative Agent, respectively, such successor Administrative Agent shall succeed to, and
become vested with, all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
under this Agreement and the other Loan Documents. Prior to any retiring Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the retiring Administrative Agent shall
take such action as may be reasonably necessary to assign to the successor Agent its rights as
Administrative Agent under the Loan Documents. After such resignation or removal, the retiring
Administrative Agent, its sub-agents and their Related Parties shall continue to have the benefit
of this Article VIII and Section 9.05 as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Agreement and the other Loan Documents.

          SECTION 8.09. Withholding of Taxes. To the extent required by any Applicable Law, the
Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to
any applicable withholding tax. If the Internal Revenue Service or any other Governmental
Authority asserts a claim that the Administrative Agent did not properly withhold tax from amounts
paid to or for the account of any Lender because the appropriate form was not delivered or was not
properly executed or because such Lender failed to notify the Administrative Agent of a change in
circumstance which rendered the exemption from, or reduction of, withholding tax ineffective or for
any other reason, such Lender shall indemnify the Administrative Agent fully for all amounts paid,
directly or indirectly, by the Administrative Agent as tax or otherwise, including any penalties or
interest and together with all expenses (including legal expenses, allocated internal costs and
out-of-pocket expenses) incurred.

ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. Notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by fax, as follows:

     (a) if to the Borrower, to it at 1018 Highland Colony Parkway, Suite 800, Ridgeland,
Mississippi 39157, Attention of the Treasurer (Tel. No. 601-790-3200; Fax No. (601)
790-3171); with a copy to Enexus Energy Corporation at 1018 Highland

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Colony Parkway, Ridgeland, MS 39157, Attention of the General Counsel (Tel. No.
601-790-3200; Fax No. (601) 790-3166);

     (b) if to the Administrative agent, to BNP Paribas at 525 Washington Boulevard ,
Jersey City, NJ, 07310, Attention of Socorro Lantin (Tel. No. (201) 850-6577; Fax No. (201)
850-4020; Email: nyls.agency.support@americas.bnpparibas.com); with a copy to White & Case
LLP at 1155 Avenue of the Americas, New York, NY 10036-2787, Attention of Scott M. Zemser
(Tel. No. (212) 819-8960; Fax No. (212) 354-811; Email: szemser@whitecase.com).

     (c) if to the Collateral Agent, to The Bank of Nova Scotia Trust Company of New York
at One Liberty Plaza, New York, NY 10006, Attention of John Neylan (Tel. No. (212)
225-5065; Fax No. (212) 225-5436; Email: john_neylan@scotiacapital.com); with copies to
Shearman & Sterling LLP, at 599 Lexington Avenue, New York, NY 10022-6069, Attention of
Christopher Poggi (Tel. No. (212) 848 7538; Email: cpoggi@shearman.com); and to Shearman &
Sterling LLP, at 599 Lexington Avenue, New York, NY 10022-6069, Attention of Ji Hong (Tel.
No. (212) 848 7417; Email: jhong@shearman.com); and

     (d) if to a Lender or Arranger, to it at its address (or fax number) set forth on
Schedule 2.01 hereto or in the Assignment and Acceptance pursuant to which such
Lender shall have become a party hereto, or otherwise as indicated in writing to the
Administrative Agent and the Borrower.

All notices and other communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five (5) Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed)
to such party as provided in this Section 9.01 or in accordance with the latest unrevoked direction
from such party given in accordance with this Section 9.01.

          SECTION 9.02. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the Lenders and the Issuers and shall survive the making by
the Lenders of the Loans and the issuance of Letters of Credit by the Issuers, regardless of any
investigation made by the Lenders or the Issuers or on their behalf, and shall continue in full
force and effect (but such representations and warranties shall be deemed made by the Borrower only
at such times and as of such dates as set forth in Section 4.01) as long as the principal of or any
accrued interest on any Loan or any Fee or any other amount payable (other than indemnification and
other contingent obligations that are not then due and payable) under this Agreement or any other
Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not been terminated. The provisions of Sections 2.14, 2.16, 2.19, 8.07 and 9.05
shall remain operative and in full force and effect regardless of the expiration of the term of
this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the expiration of any Letter of Credit, the
invalidity or unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Agents, the Arrangers, any Lender or any
Issuer.

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          SECTION 9.03. Binding Effect. This Agreement shall become effective when it shall
have been executed by the Borrower and the Administrative Agent and the Arrangers and when the
Administrative Agent shall have been notified by each Lender and Issuer that such Lender or Issuer
has executed it. This Agreement may be executed in any number of counterparts and by different
parties in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. Signature pages may
be detached from multiple separate counterparts and attached to a single counterpart so that all
signature pages are attached to the same document. Delivery of an executed signature page of this
Agreement by facsimile transmission, electronic mail or by posting on the Approved Electronic
Platform shall be as effective as delivery of a manually executed counterpart hereof. A set of the
copies of this Agreement signed by all parties shall be lodged with the Borrower and the
Administrative Agent.

          SECTION 9.04. Successors and Assigns. (a) Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the permitted successors
and assigns of such party; and all covenants, promises and agreements by or on behalf of the
Borrower, the Administrative Agent, the Collateral Agent, the Arrangers, the Issuers or the Lenders
that are contained in this Agreement shall bind and inure to the benefit of their respective
successors and assigns.

          (b) Each Lender may assign to one or more assignees (other than an Ineligible Assignee) all or
a portion of its interests, rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it); provided, however, that
(i) the Borrower, the Administrative Agent and each Issuer must give its prior written consent to
such assignment (which consent shall not be unreasonably withheld or delayed (in the case of the
Borrower, following the Funds Availability Date)); provided further that (x) the Borrower
shall not be required to consent to any such assignment (1) during the continuance of any Event of
Default, (2) to a Lender or an Affiliate or Related Fund of a Lender or (3) made pursuant to
Section 2.21(b) and (y) except in the case of an assignment to a Lender or an Affiliate or Related
Fund of a Lender, the amount of the Commitment or Loan of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5,000,000 (or, if less, the
entire remaining amount of such Lender’s Commitment or Loans and those of its Related Funds shall
be aggregated for this purpose), (ii) the parties to each such assignment shall execute and deliver
to the Administrative Agent an Assignment and Acceptance (such Assignment and Acceptance to be (x)
electronically executed and delivered to the Administrative Agent via an electronic settlement
system then acceptable to the Administrative Agent, or (y) manually executed and delivered) and
(iii) the assignee, if it shall not be a Lender immediately prior to the assignment, shall deliver
to the Administrative Agent an Administrative Questionnaire. No Lender is permitted to assign all
or any portion of its interests, rights or obligations under this Agreement (including all or a
portion of its Commitment and the Loans at any time owing to it) except as specifically set forth
in the immediately preceding sentence and any purported assignment not in conformity therewith
shall be null and void. Upon acceptance and recording pursuant to paragraph (e) of this Section
9.04, from and after the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement
(including the obligations under Sections 2.19(e) and 2.19(f)) and (B) the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this

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Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall
cease to be a party hereto but shall continue to be entitled to the benefits and obligations of
Sections 2.14, 2.16, 2.19 and 9.05 as well as to any fees accrued for its account and not yet
paid). Notwithstanding the foregoing (but subject to the consent rights set forth in the first
sentence of this Section 9.04(b)), an assignment by a Lender to one of its Affiliates or Related
Funds will be effective, valid, legal and binding without regard to whether the assignor has
delivered an Assignment and Acceptance or Administrative Questionnaire to the Administrative Agent
(and the acceptance and recordation thereof under paragraph (e) of this Section 9.04 shall not be
required); provided that the Administrative Agent and the Borrower shall be entitled to
deal solely with the assignor unless and until the date that an Assignment and Acceptance and
Administrative Questionnaire have been delivered to the Administrative Agent with respect to the
applicable assignee.

          (c) By executing and delivering (to the Administrative Agent or the assigning Lender in the
case of an assignment by a Lender to one of its Affiliates or Related Funds pursuant to the last
sentence of paragraph (b) of this Section) an Assignment and Acceptance, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and
the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and
beneficial owner of the interest being assigned thereby free and clear of any adverse claim made by
it and that its Commitment and the outstanding balances of its Loans and Issued Letters of Credit,
in each case without giving effect to assignments thereof which have not become effective, are as
set forth in such Assignment and Acceptance, (ii) except as set forth in (i) above, such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in, or in connection with, this Agreement, or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement,
any other Loan Document or any other instrument or document furnished pursuant hereto, or the
financial condition of the Borrower or any Restricted Subsidiary or the performance or observance
by the Borrower or any Restricted Subsidiary of any of its obligations under this Agreement, any
other Loan Document or any other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is legally authorized to enter into such Assignment and
Acceptance and that, as of the effective date of such assignment, it is not a Defaulting Lender;
(iv) such assignee confirms that it has received a copy of this Agreement, together with copies of
the most recent financial statements referred to in Section 3.05(a) or delivered pursuant to
Section 5.05 and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Arrangers, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement; (vi) such assignee appoints and
authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement as are delegated to the Administrative
Agent and the Collateral Agent, respectively, by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

          (d) The Administrative Agent, acting for the purpose of this Section 9.04(d), and for tax
purposes, as an agent of the Borrower, shall maintain at one of its offices in the City

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of New York a copy of each Assignment and Acceptance delivered to it and one or more registers
for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal
amount 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 Administrative Agent, the Issuers, the Collateral Agent and the Lenders shall 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, the Issuers, the Collateral Agent and any
Lender, at any reasonable time and from time to time upon reasonable prior notice. In the case of
any assignment made in accordance with the last sentence of paragraph (b) of this Section 9.04 that
is not reflected in the Register, the assigning Lender shall maintain a comparable register
reflecting such assignment.

          (e) Upon its receipt of (i) a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, (ii) an Administrative Questionnaire completed in respect of the
assignee (unless the assignee shall already be a Lender hereunder), (iii) a processing and
recordation fee of $3500, (iv) any Note, if requested by the assignee and (v) if required, the
written consent of the applicable Issuer and the Administrative Agent to such assignment, the
Administrative Agent shall (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the Lenders, the Issuers
and the Borrower. No assignment shall be effective unless it has been recorded in the Register as
provided in this paragraph (e). Notwithstanding the foregoing, an assignment by a Lender to an
Affiliate or Related Fund pursuant to the last sentence of paragraph (b) of this Section 9.04 shall
not be required to be recorded in the Register to be effective; provided that (i) such
assignment is recorded in a comparable register maintained by the assignor as provided in paragraph
(b) of this Section and (ii) the Administrative Agent and the Borrower shall be entitled to deal
solely and directly with the assignor unless and until the date that an Assignment and Acceptance
and Administrative Questionnaire have been delivered to the Administrative Agent with respect to
the applicable assignee.

          (f) Each Lender may without the consent of the Borrower, the Issuers or the Administrative
Agent sell participations to any Person (other than an Ineligible Assignee; provided that
for purposes of this Section 9.04(f), clause (iii) of the definition of “Ineligible Assignee” shall
be disregarded for purposes of determining who is an Ineligible Assignee) in all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Commitment and
the Loans owing to it); provided, however, that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) the participating banks or
other entities shall be entitled to the benefit of the cost protection provisions contained in
Sections 2.14, 2.16 and 2.19 to the same extent as if they were Lenders (but, with respect to any
particular participant, to no greater extent than the Lender that sold the participation to such
participant), if and to the extent that such participating banks or other entities agree to be
bound by any obligations under Sections 2.14, 2.16 and 2.19 and (iv) the Borrower, the
Administrative Agent, the Issuers and the Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this Agreement, and such
Lender shall retain the sole right to enforce the obligations of the Borrower relating to the Loans
and to approve any amendment, modification or waiver of any provision of this Agreement (other than
amendments, modifications or waivers decreasing any fees payable hereunder or the amount of
principal of or the rate at which interest is payable on the Loans, extending any scheduled

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principal payment date or date fixed for the payment of interest on the Loans or of any fees,
increasing or extending the Commitments or releasing any Subsidiary Guarantor or all or
substantially all of the Collateral).

          (g) Any Lender or participant may, in connection with any assignment, pledge or participation
or proposed assignment, pledge or participation pursuant to this Section 9.04, disclose to the
assignee or participant or proposed assignee or participant any information relating to the
Borrower or its Subsidiaries furnished to such Lender by or on behalf of the Borrower and its
Subsidiaries; provided that, prior to any such disclosure of information designated by the
Borrower as confidential, each such assignee or participant or proposed assignee or participant
shall agree (subject to customary exceptions) to preserve the confidentiality of such confidential
information on terms no less restrictive than those applicable to the Lenders pursuant to Section
9.16.

          (h) Any Lender may, without the consent of the Borrower or the Administrative Agent, at any
time pledge or assign all or any portion of its rights under this Agreement to secure extensions of
credit to such Lender or in support of obligations owed by such Lender, including any pledge or
assignment to secure obligations to any Federal Reserve Bank, and, in the case of any Lender that
is a fund that invests in bank loans, such Lender may collaterally assign all or any portion of its
rights under this Agreement to any holder of, trustee for, or other representative of any holders
of, obligations owed or securities issued by such fund as security for such obligations or
securities; provided that no such assignment described in this clause (h) shall release a
Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a
party hereto.

          (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPV”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPV to make any Loan and (ii) if an SPV
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a
Loan by an SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent,
and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no
SPV shall be liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each
party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPV, it will not institute against, or join
any other Person in instituting against, such SPV any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section 9.04, any SPV may (i)
with notice to, but without the prior written consent of, the Borrower and the Administrative
Agent, and without paying any processing fee therefor, assign all or a portion of its interests in
any Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the account of such SPV
to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any
non-public information relating

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to its Loans to any rating agency, commercial paper dealer or provider of any surety,
guarantee or credit or liquidity enhancement to such SPV.

          (j) No Borrower shall assign or delegate any of its rights or duties hereunder without the
prior written consent of the Administrative Agent, each Issuer and each Lender, and any attempted
assignment without such consent shall be null and void.

          SECTION 9.05. Expenses; Indemnity. (a) The Borrower agrees to pay all reasonable and
documented out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent, the
Arrangers, the Syndication Agent, the Issuers and the Lenders (including the reasonable fees,
charges and disbursements of Weil, Gotshal & Manges LLP (counsel to the Arrangers), counsel to the
Administrative Agent, and other reasonable local and special counsel to the Administrative Agent,
the Collateral Agent, the Arrangers, the Syndication Agent, the Issuers and the Lenders and charges
of Intralinks) in connection with the syndication of the credit facilities provided for herein and
the preparation and administration of this Agreement and the other Loan Documents or in connection
with any amendments, modifications or waivers of the provisions hereof or thereof and any
transactions hereby or thereby contemplated (whether or not such transactions are consummated)
including, without limitation, the Transactions. The Borrower also agrees to pay all documented
out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent, the Syndication
Agent, the Arrangers, any Issuer or any Lender in connection with the enforcement or protection of
its rights in connection with this Agreement and the other Loan Documents or in connection with the
Loans made or Letters of Credit issued hereunder (including in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the nature of a
“work-out” or pursuant to any bankruptcy or insolvency proceeding), including the fees, charges and
disbursements of Weil, Gotshal & Manges LLP and other reasonable local and special counsel
(including special workout counsel) to the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Arrangers, any Issuer or any Lender.

          (b) The Borrower agrees to indemnify the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Arrangers, each Lender, each Issuer and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and to hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including reasonable and documented counsel fees, charges and disbursements, incurred by or
asserted against any Indemnitee arising out of, in any way connected with, or as a result of (i)
the execution or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated thereby, the performance by the parties thereto of their respective
obligations thereunder or the consummation of the Transactions and the other transactions
contemplated thereby, (ii) the use of the proceeds of the Loans or issuance of Letters of Credit,
(iii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether
or not any Indemnitee is a party thereto, or (iv) any actual or alleged presence or Release of
Hazardous Materials, or any non-compliance with Environmental Law, on any property owned or
operated by the Borrower or any of the Subsidiaries, or any Environmental Liability related in any
way to the Borrower or any of the Subsidiaries; provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

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          (c) To the extent permitted by Applicable Law, the Borrower shall not assert, and each hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter
of Credit or the use of the proceeds thereof.

          (d) The provisions of this Section 9.05 shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, the Syndication Agent, the Arrangers, any Lender or any
Issuer. All amounts due under this Section 9.05 shall be payable promptly upon written demand
therefor.

          SECTION 9.06. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time, except to the
extent prohibited by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by such
Lender or any Qualified Counterparty that has designated a Related Agreement with respect to this
Agreement (as provided in the Intercreditor Agreement) to or for the credit or the account of the
Borrower against any of and all the obligations of the Borrower now or hereafter existing under
this Agreement and other Loan Documents held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement or such other Loan Document and although
such obligations may be unmatured. The rights of each Lender under this Section 9.06 are in
addition to other rights and remedies (including other rights of setoff) which such Lender may
have.

          SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN
LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF
LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH
THE PARTIES HERETO AGREE APPLY HERETO). EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH
LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED, BY THE
INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO MATTERS NOT GOVERNED
BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 9.08. Waivers; Amendment; Replacement of Non-Consenting Lenders. (a) No
failure or delay of the Agents, the Arrangers, any Lender or any Issuer in exercising any power or
right hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Agents, the Arrangers, the
Issuers and the Lenders hereunder and under the other Loan

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Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent
to any departure by the Borrower or any other Loan Party therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) below, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No notice or demand
on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in
similar or other circumstances.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders; provided, however, that no such agreement shall (i) decrease or forgive
the principal amount of, or extend the maturity of or any date for the payment of any interest on
any Loan or waive or excuse any such payment or any part thereof, or decrease the rate of interest
on any Loan, without the prior written consent of each Lender directly affected thereby, (ii)
increase or extend the Commitment or decrease or extend the date for payment of or decrease the
amount or rate of any fees (other than fees payable to Issuers pursuant to the Letter of Credit Fee
Letter) of any Lender without the prior written consent of such Lender, (iii) (A) amend or modify
the pro rata requirements of Section 2.17, (B) amend or modify the provisions of Sections 2.09,
2.13 and 2.17 requiring ratable reduction, distribution or sharing or ratable funding, (C) amend or
modify the provisions of Section 9.04(j), (D) amend or modify the provisions of this Section 9.08,
(E) amend or modify the definition of the term “Required Lenders”, (F) release any
Subsidiary Guarantor (except in connection with a release expressly permitted under the Loan
Documents), (G) amend, modify or waive the ratings conditions set forth in Section 4.03(g) or (H)
amend, modify or waive the condition set forth in Section 4.03(f), in each case in this clause
(iii) without the prior written consent of each Lender, (iv) except upon payment in full of the
Secured Obligations arising hereunder (except for contingent obligations or indemnities not yet
accrued as of such time), release all or substantially all of the Collateral, except in connection
with a disposition expressly permitted under the Loan Documents, without the prior written consent
of each Lender or (v) modify the protections afforded to an SPV pursuant to the provisions of
Section 9.04(i) without the written consent of such SPV; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent, the Collateral Agent or any Issuer hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent, the Collateral Agent or such Issuer, as
applicable. The Administrative Agent may, with the consent of the Borrower, amend, modify or
supplement this Agreement to cure any ambiguity, omission, defect or inconsistency, so long as such
amendment, modification or supplement does not adversely affect the rights of any Lender or any
Issuer. With respect to any Issuer chosen after the Signing Date, the Administrative Agent may,
with the consent of the Borrower, amend, modify or supplement Section 2.03 of this Agreement prior
to the Funds Availability Date to incorporate terms and conditions requested by such Issuer so long
as such amendment, modification or supplement does not adversely affect the rights of any Lender or
any other Issuer.

          (c) Each Lender grants (i) to the Administrative Agent the right (with the prior written
consent of the Borrower) to purchase all of such Lender’s Commitments and Loans owing to it and any
related Notes held by it and all its rights and obligations hereunder and under the other Loan
Documents and (ii) to the Borrower the right to cause an assignment of all of such Lender’s
Commitments and Loans owing to it and any related Notes held by it and all its rights and
obligations hereunder and under the other Loan Documents to one or more eligible assignees pursuant
to Section 9.04, which right may be exercised by the Administrative Agent or the

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Borrower, as the case may be, if such Lender (a “Non-Consenting Lender”) refuses to
execute any amendment, modification, termination, waiver or consent which requires the written
consent of Lenders other than the Required Lenders and to which the Required Lenders and the
Borrower have otherwise agreed; provided that such Non-Consenting Lender shall receive in
connection with such purchase or assignment, payment equal to the aggregate amount of outstanding
Loans owed to such Lender, together with all accrued and unpaid interest, fees and other amounts
(other than indemnification and other contingent obligations not yet due and payable) owed to such
Lender under the Loan Documents at such time; and provided, further, that any such
assignee shall agree to such amendment, modification, termination, waiver or consent. Each Lender
agrees that if the Administrative Agent or the Borrower, as the case may be, exercises its option
under this paragraph it shall promptly execute and deliver all agreements and documentation
necessary to effectuate such assignment as set forth in Section 9.04. The Borrower shall be
entitled (but not obligated) to execute and deliver such agreements and documentation on behalf of
such Non-Consenting Lender and any such agreements or documentation so executed by the Borrower
shall be effective for all purposes of documenting an assignment pursuant to Section 9.04.

          SECTION 9.09. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under Applicable Law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with Applicable Law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section 9.09 shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Rate to the date of repayment, shall have been received by such Lender.

          SECTION 9.10. Entire Agreement. This Agreement and the other Loan Documents
constitute the entire contract between the parties relative to the subject matter hereof. Any
other previous agreement among the parties with respect to the subject matter hereof is superseded
by this Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan
Documents, expressed or implied, is intended to confer upon any Person (other than the parties
hereto and thereto, their respective successors and assigns permitted hereunder (including any
Affiliate of an Issuer that issues any Letter of Credit) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Arrangers, any Issuer and the Lenders) any rights, remedies, obligations or
liabilities under or by reason of this Agreement or the other Loan Documents.

          SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH

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OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 9.11.

          SECTION 9.12. Severability. In the event any one or more of the provisions contained
in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein
and therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

          SECTION 9.13. Counterparts. This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original but
all of which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9.03.

          SECTION 9.14. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 9.15. Jurisdiction; Consent to Service of Process. (a) The Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Arrangers, any Issuer or any Lender may otherwise have to bring any action
or proceeding relating to this Agreement or the other Loan Documents against the Borrower or its
properties in the courts of any jurisdiction.

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

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          (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.16. Confidentiality. Each of the Agents, the Arrangers, the Issuers and the
Lenders agrees to maintain the confidentiality of the Information, except that Information may be
disclosed (a) to its and its Affiliates’ officers, directors, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority or
quasi-regulatory authority (such as the National Association of Insurance Commissioners), (c) to
the extent required by Applicable Laws or by any subpoena or similar legal process, (d) in
connection with the exercise of any remedies hereunder or under the other Loan Documents or any
suit, action or proceeding relating to the enforcement of its rights hereunder or thereunder, (e)
to (i) any actual or prospective assignee of or participant in any of its rights or obligations
under this Agreement and the other Loan Documents, (ii) any pledgee referred to in Section 9.04(g)
or (iii) any actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower or any Subsidiary or any of their respective obligations, in
each case subject to agreement by such party to hold such confidential information in accordance
with its customary procedures and in any case no less restrictive than those of this Section 9.16,
(f) to market data collectors, similar service providers to the lending industry and service
providers to the Arrangers, the Agents or Lenders in connection with the administration or
management of this Agreement or the other Loan Documents, (g) to any rating agency, (h) with the
consent of the Borrower or (i) to the extent such Information becomes publicly available other than
as a result of a breach of this Section 9.16. For the purposes of this Section,
“Information” shall mean all financial statements, certificates, reports, agreements and
other information received from the Borrower or its Restricted Subsidiaries and related to the
Borrower or its business, other than any such financial statements, certificates, reports,
agreements and other information that was available to the Agents, the Arrangers, any Issuer or any
Lender on a nonconfidential basis prior to its disclosure by the Borrower; provided that,
in the case of Information received from the Borrower after the Funds Availability Date, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section 9.16 shall be considered to
have complied with its obligation to do so if such Person has maintained the confidentiality of
such Information in accordance with its customary procedures. Notwithstanding any other express or
implied agreement, arrangement or understanding to the contrary, each of the parties hereto agrees
that each other party hereto (and each of its employees, representatives or agents) are permitted
to disclose to any Persons, without limitation, the tax treatment and tax structure of the Loans
and the other transactions contemplated by the Loan Documents and all materials of any kind
(including opinions and tax analyses) that are provided to the Loan Parties, the Lenders, the
Arrangers or any Agent related to such tax treatment and tax aspects. To the extent not
inconsistent with the immediately preceding sentence, this authorization does not extend to
disclosure of any other information or any other term or detail not related to the tax treatment or
tax aspects of the Loans or the transactions contemplated by the Loan Documents.

          SECTION 9.17. Mortgage Modifications. As a condition precedent to the Borrower’s
incurrence of Additional Intercreditor Indebtedness pursuant to Section 6.01(c) and/or Section 2.21
as provided for herein, the Borrower shall satisfy the following requirements:

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     (a) the Subsidiary Guarantors shall enter into, and deliver to the Administrative
Agent and the Collateral Agent, at the direction and in the sole discretion of the
Administrative Agent and the Collateral Agent, a mortgage modification or new Mortgage in
proper form for recording in the relevant jurisdiction and in a form reasonably
satisfactory to the Administrative Agent and the Collateral Agent (such Mortgage or
mortgage modification of, the “Modification”);

     (b) the Borrower shall deliver a local counsel opinion in form and substance as set
forth in Section 4.03(a)(vii)(D) of this Agreement;

     (c) the Borrower shall have caused a title company approved by the Administrative
Agent to have delivered to the Administrative Agent and the Collateral Agent (A) evidence
that the title insurance policy delivered pursuant to Section 4.03(a)(vii)(B) insures an
amount equal to the lesser of (x) the Secured Obligations including any title insurance
“cushion” reasonably requested by Collateral Agent and (y) the value of the Mortgaged
Property as reasonably determined by the Collateral Agent and (B) an endorsement to the
title insurance policy delivered pursuant to Section 4.03(a)(vii)(B), date down(s) and/or
other evidence reasonably satisfactory to the Administrative Agent and/or the Collateral
Agent insuring that (i) the priority of the liens evidenced by insuring the continuing
priority of the Lien of the Mortgage as security for such Indebtedness has not changed and
(ii) confirming and/or insuring that (a) since the immediately prior incurrence of such
additional Indebtedness, there has been no change in the condition of title and (b) there
are no intervening liens or encumbrances which may then or thereafter take priority over
the Lien of the Mortgage, other than the Permitted Liens (without adding any additional
exclusions or exceptions to coverage; a “Modification Endorsement”);

     (d) the Borrower shall, upon the request of the Administrative Agent and/or the
Collateral Agent, deliver to the approved title company, the Collateral Agent and/or all
other relevant third parties all other items reasonably necessary to maintain the
continuing priority of the Lien of the Mortgage as security for such Indebtedness; and

     (e) any other items reasonably requested by the Collateral Agent and the
Administrative Agent in connection with the incurrence of such Additional Intercreditor
Indebtedness.

          SECTION 9.18. Patriot Act Notice. Each Lender subject to the Patriot Act hereby
notifies the Borrower that, pursuant to Section 326 of the Patriot Act, it is required to obtain,
verify and record information that identifies the Borrower and each Subsidiary Guarantor, including
the name and address of the Borrower and each Subsidiary Guarantor and other information that will
allow such Lender to identify the Borrower and each Subsidiary Guarantor in accordance with the
Patriot Act.

          SECTION 9.19. No Fiduciary Duty. Each Agent, each Arranger, each Lender, each Issuer
and their respective Affiliates (collectively, solely for purposes of this paragraph, the
“Lenders”), may have economic interests that conflict with those of the Borrower and its
Subsidiaries. The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed
to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between
the Lenders and Borrower, its stockholders or its Affiliates. The Borrower (for itself and on
behalf of its Subsidiaries and Affiliates) acknowledges and agrees that (i) the transactions

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contemplated by the Loan Documents are arm’s-length commercial transactions between the
Lenders, on the one hand, and Borrower and its Subsidiaries, on the other, (ii) in connection
therewith and with the process leading to such transactions each Lender is acting solely as a
principal and not the agent or fiduciary of Borrower, its management, stockholders, creditors or
any other person, (iii) no Lender has assumed an advisory or fiduciary responsibility in favor of
Borrower with respect to the transactions contemplated hereby or the process leading thereto
(irrespective of whether any Lender or any of its Affiliates has advised or is currently advising
Borrower or any of its Affiliates or Subsidiaries on other matters) or any other obligation to the
Borrower except the obligations expressly set forth in the Loan Documents and (iv) the Borrower has
consulted its own legal and financial advisors to the extent it deemed appropriate. The Borrower
(for itself and on behalf of its Subsidiaries and Affiliates) further acknowledges and agrees that
it is responsible for making its own independent judgment with respect to such transactions and the
process leading thereto. The Borrower (for itself and on behalf of its Subsidiaries and
Affiliates) agrees that it will not claim that any Lender has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to the Borrower or any of its Subsidiaries
or Affiliates in connection with such transaction or the process leading thereto.

          SECTION 9.20. Termination. Notwithstanding anything to the contrary herein, if the
Funds Availability Date shall not have occurred on or prior to the Outside Date, the Commitments
hereunder shall terminate automatically on such date and this Agreement shall be of no further
force and effect except for those provisions herein that by their terms expressly survive
termination of this Agreement.

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

	 	 	 	 	 
	 	ENEXUS ENERGY CORPORATION

 	 
	 	By:  	/s/ Paul A. Stadnikia
 	 
	 	 	Name:  	Paul A. Stadnikia 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	CITIGROUP GLOBAL MARKETS INC.,

as Joint Book Runner and Joint Lead Arranger

 	 
	 	By:  	/s/ Timothy P. Dilworth
 	 
	 	 	Name:  	Timothy P. Dilworth 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GOLDMAN SACHS LENDING PARTNERS LLC,

as Joint Book Runner and Joint Lead Arranger and as

Lender

 	 
	 	By:  	/s/ Teri Streusand
 	 
	 	 	Name:  	Teri Streusand 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	BNP PARIBAS, as Administrative Agent

and as Lender

 	 
	 	By:  	/s/ Denis O’Meara
 	 
	 	 	Name:  	Denis O’Meara 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Ravina Advani
 	 
	 	 	Name:  	Ravina Advani 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NOVA SOCTIA TRUST

COMPANY OF NEW YORK,

as Collateral Agent

 	 
	 	By:  	/s/ John F. Neylan
 	 
	 	 	Name:  	John F. Neylan 	 
	 	 	Title:  	Trust Officer 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.,

as Syndication Agent and as Lender

 	 
	 	By:  	/s/ Hidekatsu Take
 	 
	 	 	Name:  	Hidekatsu Take 	 
	 	 	Title:  	Deputy General Manager 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITIBANK, N.A., as Lender

 	 
	 	By:  	/s/ Timothy P. Dilworth
 	 
	 	 	Name:  	Timothy P. Dilworth 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as Lender

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

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH, as Lender

 	 
	 	By:  	/s/ Tom Byargeon
 	 
	 	 	Name:  	Tom Byargeon 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Sharada Manne
 	 
	 	 	Name:  	Sharada Manne 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	NATIXIS NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ Stephane Leroy
 	 
	 	 	Name:  	Stephane Leroy 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Pierre Audrain
 	 
	 	 	Name:  	Pierre Audrain 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.,

as Lender

 	 
	 	By:  	/s/ John Guilds
 	 
	 	 	Name:  	John Guilds 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A.,

as Lender

 	 
	 	By:  	/s/ Melissa James
 	 
	 	 	Name:  	Melissa James 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BARCLAYS BANK PLC, as Lender

 	 
	 	By:  	/s/ Douglas Bernegger
 	 
	 	 	Name:  	Douglas Bernegger 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Lender

 	 
	 	By:  	/s/ Jacob Dowden
 	 
	 	 	Name:  	Jacob Dowden 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as Lender

 	 
	 	By:  	/s/ Paul J. Pace
 	 
	 	 	Name:  	Paul J. Pace 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	REGIONS BANK, as Lender

 	 
	 	By:  	/s/ W.A. Philipp
 	 
	 	 	Name:  	W.A. Philipp 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Credit Agreement]

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Lender

 	 
	 	By:  	/s/ Marcus M. Tarkington
 	 
	 	 	Name:  	Marcus M. Tarkington 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Keith C. Braun
 	 
	 	 	Name:  	Keith C. Braun 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Credit Agreement]

 

 

Annex III

Signing Date Representations and Warranties

     To induce the Arrangers, Administrative Agent, the Collateral Agent, the Issuers and each of
the Lenders to enter into this Agreement, the Borrower hereby represents and warrants to the
Arrangers, the Administrative Agent, the Collateral Agent, each Issuer and each of the Lenders,
which representations and warranties shall be deemed made on the Signing Date (immediately before
and immediately after giving effect to this Agreement) that the representations and warranties set
forth in this Annex III are true and correct in all material respects (except to the extent that
such representations and warranties are qualified as to materiality, in which case they shall be
true and correct in all respects).

     SECTION
1.01. Organization; Powers. The Borrower (a) is duly organized or formed,
validly existing and in good standing under the laws of the jurisdiction of its organization or
formation, (b) has all requisite corporate, limited liability or partnership power and authority,
and the legal right, to own and operate its property and assets, to lease the property it operates
as lessee and to carry on those aspects of the Permitted Business that it now conducts, (c) is
qualified to do business in, and is in good standing in, every jurisdiction where such
qualification is required, except where the failure so to qualify, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect and (d) has the
corporate, limited liability or partnership power and authority, and the legal right, to execute,
deliver and perform its obligations under this Agreement and each of the other Loan Documents
executed on the Signing Date.

     SECTION
1.02. Authorization; No Conflicts. The execution and delivery of this
Agreement and the other Loan Documents executed on the Signing Date (a) have been duly authorized
by all requisite corporate, partnership or limited liability company and, if required, stockholder,
partner or member action of the Borrower and (b) do not (i) violate, conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a default under, or give
rise to any right to accelerate or to require the prepayment, repurchase or redemption of any
obligation under (A) any applicable provision of any material law, statute, rule or regulation, or
of the certificate or articles of incorporation or other constitutive documents or by-laws of the
Borrower, (B) any order of any Governmental Authority or arbitrator or (C) any provision of any
indenture or any material agreement or other material instrument to which the Borrower is a party
or by which any of them or any of their property is or may be bound; or (ii) result in the creation
or imposition of any Lien upon or with respect to any property or assets now owned or hereafter
acquired by the Borrower.

     SECTION
1.03. Enforceability. This Agreement has been duly executed and delivered by
the Borrower and constitutes a legal, valid and binding obligation of the Borrower in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other laws now or hereafter in effect relating to creditors’ rights
generally and (including with respect to specific performance) subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law, and to the discretion
of the court before which any proceeding therefor may be brought.

     SECTION
1.04. Approvals. No action, consent or approval of, registration or filing
with, notice to, or any other action by, any Governmental Authority or in respect of any Material
Contract is required in connection with the execution and delivery by the Borrower of this

 

 

Agreement and the Intercreditor Agreement, except for any immaterial actions, consents,
approvals, registrations or filings or such as have been made or obtained and are in full force and
effect.

     SECTION
1.05. Financial Statements. (a) The Borrower has, on or prior to the Signing
Date, furnished to the Lenders (i) the audited historical combined financial statements for the
non-utility nuclear business of Entergy and its consolidated subsidiaries (together, “Entergy
Nuclear”) as of and for the fiscal year ended December 31, 2007, which audited historical
combined financial statements have been audited by and are accompanied by the unqualified opinion
of Deloitte & Touche LLP, independent public accountants, and (ii) the unaudited interim combined
financial statements of Entergy Nuclear as of and for the nine months ended September 30, 2008.
Such financial statements present fairly in all material respects the financial condition, results
of operations and cash flows of Entergy Nuclear on a combined basis as of and for their respective
periods and have been prepared in accordance with GAAP applied on a consistent basis throughout the
periods involved (except, with respect to such financial statements referred to in clause (ii)
above, for normal year-end adjustments and the omission of certain information and footnote
disclosures as permitted by SEC rules and regulations).

          (b) The Borrower also has, on or prior to the Signing Date, furnished to the Lenders (i) the
unaudited pro forma combined financial statements for Entergy Nuclear as of and for the fiscal year
ended December 31, 2007, which have been derived from Entergy Nuclear’s audited historical combined
financial statements as of and for the fiscal year ended December 31, 2007, and (ii) the unaudited
pro forma combined financial statements of Entergy Nuclear as of and for the nine months ended
September 30, 2008, which have been derived from Entergy Nuclear’s unaudited interim combined
financial statements as of and for the nine months ended September 30, 2008. Such unaudited pro
forma combined financial statements have been prepared on a basis consistent with the historical
combined financial statements of Entergy Nuclear from which they are derived (except for the pro
forma adjustments specified therein) and include assumptions that provide a reasonable basis for
presenting the significant effects directly attributable to the Separation Transactions and the
events described therein, the related pro forma adjustments give appropriate effect to those
assumptions and the pro forma adjustments reflect the proper application of those adjustments to
the historical combined financial statements from which they are derived and comply as to form in
all material respects with the applicable accounting requirements of Regulations S-X under the
Securities Act of 1933, as amended.

     SECTION
1.06. No Material Adverse Effect. Since December 31, 2007, there has been no
event, development or circumstance that has had or could reasonably be expected to have a Material
Adverse Effect.

     SECTION
1.07. Litigation; Compliance with Laws. (a) Except as set forth on
Schedule 3.09(a) (Signing), there are no actions, suits or proceedings at law or in equity
or by or before any arbitrator or Governmental Authority now pending or, to the knowledge of the
Borrower, threatened against the Borrower or any Subsidiary or any business, property or material
rights of the Borrower or any Subsidiary (i) that, as of the Signing Date, involve any Loan
Document or the Transactions or, at any time thereafter, involve any Loan Document or the
Transactions and which could reasonably be expected to be material and adverse to the interests of
the Lenders, or (ii)as to which there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

2

 

          (b) Except as set forth on Schedule 3.09(b) (Signing), none of the Borrower or any of
the Restricted Subsidiaries or any of their respective material properties or assets is in
violation of any law, rule or regulation (including any zoning, building, ordinance, code or
approval or any building permits), or is in default with respect to any judgment, writ, injunction,
decree or order of any Governmental Authority, where such violation or default, individually or in
the aggregate, could reasonably be expected to result in a Material Adverse Effect (but not
including, in each case, any Environmental Law which would be the subject of Section 3.17 or any
energy regulation matter which would be the subject of Section 3.23).

          (c) The Borrower and all of its Subsidiaries are in possession of all Permits (other than
Permits required under applicable Environmental Laws which would be the subject of Section 3.17)
necessary to own, lease and operate their properties and to lawfully carry on their businesses as
they are now being conducted, except where the failure to be in possession of such Permit would
not, individually or in the aggregate, have a Material Adverse Effect. There is no action,
proceeding or investigation pending or, to the knowledge of the Borrower and each of its
Subsidiaries, threatened regarding any material Permit (other than Permits required under
applicable Environmental Laws which would be the subject of Section 3.17) which would have a
Material Adverse Effect. None of the Borrower or any of its Subsidiaries is in material conflict
with, or in default of, or in material violation of any material Permit (other than Permits
required under applicable Environmental Laws which would be the subject of Section 3.17).

     SECTION
1.08. Contractual Obligations. None of the Borrower or any of the
Subsidiaries is in default under any provision of any Contractual Obligations in respect of
Indebtedness, or any other material Contractual Obligations to which it is a party or by which it
or any of its properties or assets are or may be bound, where such default, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

     SECTION
1.09. Federal Reserve Regulations. (a) None of the Borrower or any of the
Subsidiaries is engaged principally, or as one of its material activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock. Neither the Borrower nor any
of its Subsidiaries owns any Margin Stock.

          (b) None of the transactions contemplated by this Agreement will violate or result in the
violation of any of the provisions of the Regulations of the Board, including Regulation T,
Regulation U or Regulation X. If requested by any Lender or the Arrangers, the Borrower will
furnish to the Arrangers and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1 referred to in Regulation U.

     SECTION
1.10. Investment Company Act. Neither the Borrower nor any of its
Subsidiaries is subject to regulation under the Investment Company Act of 1940 as amended from time
to time (the “Investment Company Act”). Neither the Borrower nor any of its Subsidiaries
is a “registered investment company” or a company “controlled” by a “registered investment company”
or a “principal underwriter” of a “registered investment company”, as such terms are defined in the
Investment Company Act.

     SECTION
1.11. Disclosure. The written information relating to the Borrower and its
Subsidiaries and the Separation (including, without limitation, the Confidential Information
Memorandum and the Registration Statement) furnished by or on behalf of the Borrower and its
respective Affiliates to the Arrangers, Administrative Agent, Collateral Agent or any Lender in
connection with the Transactions or the negotiation of this Agreement or delivered hereunder,

3

 

taken as a whole (as modified or supplemented by other information so furnished prior to the
relevant measurement date for this representation and warranty), does not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements made, in light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information or other forward-looking
statements, the Borrower represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time; it being recognized by the Lenders that
such projections are as to future events and are not to be viewed as facts and that actual results
during the period or periods covered by any such projections may differ from the projected results
and such differences may be material.

     SECTION
1.12. Patriot Act. To the extent applicable, each Loan Party is in
compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended, and each
of the foreign assets control regulations of the Untied States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, and (ii) the Patriot Act.

     SECTION
1.13. No Restricted Subsidiaries. As of the Signing Date, there are no
Restricted Subsidiaries.

4

 

Annex V

Signing Date Affirmative Covenants

     The Borrower covenants and agrees with each Lender that, from and after the Signing Date, so
long as this Agreement shall remain in effect and until the earlier of (i) the Funds Availability
Date and (ii) the Outside Date, the Borrower will, and will cause each of the Restricted
Subsidiaries to comply with the affirmative covenants set forth in this Annex V.

     SECTION
1.01. Corporate Existence. Do or cause to be done all things necessary to
preserve and keep in full force and effect (a) its corporate existence, and the corporate,
partnership or other existence of each of its subsidiaries, in accordance with the respective
Constituent Documents (as the same may be amended from time to time) of the Borrower or any such
Subsidiary; and (b) the rights (charter and statutory), licenses and franchises of the Borrower and
its Subsidiaries, except where the failure to so preserve and keep could not reasonably be expected
to have a Material Adverse Effect; provided, however, that neither the Borrower nor
any Restricted Subsidiary shall be required to preserve any such right, license or franchise, or
the corporate, partnership or other existence of itself or any of its Subsidiaries, if (i) the
Borrower or such Restricted Subsidiary shall determine that the preservation thereof is no longer
desirable in the conduct of the Permitted Businesses of the Borrower and its Subsidiaries, taken as
a whole, and that the loss thereof could not reasonably be expected to result in a Material Adverse
Effect or (ii) such preservation is not contemplated in connection with the Separation
Transactions.

     SECTION
1.02. Compliance with Laws. Comply with all Applicable Laws, Contractual
Obligations and Permits, except where the failure so to comply would not, in the aggregate, have a
Material Adverse Effect.

     SECTION
1.03. Financial Statements, Reports, etc. In the case of the Borrower,
furnish to the Administrative Agent for distribution to each Lender:

     (a) Annual Reports. By the earlier of (i) 123 days and (ii) the date of
delivery to the lenders under Entergy’s existing credit facility, after the end of each
fiscal year, the consolidated balance sheet and related statements of income, stockholders’
equity and cash flows showing the financial condition as of the close of such fiscal year
of Entergy and its consolidated subsidiaries at such time and the results of its operations
and the operations of such consolidated subsidiaries during such year, together with
comparative figures for the immediately preceding fiscal year (or, in the case of the
fiscal year ending December 31, 2008, the comparable twelve month period ending December
31, 2007), all audited by Deloitte & Touche LLP or other independent public accountants of
recognized national standing reasonably satisfactory to the Arrangers and accompanied by an
opinion of such accountants (which shall not be qualified in any material respect) to the
effect that such consolidated financial statements fairly present the financial condition
and results of operations of Entergy and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied;

     (b) Quarterly Reports. By the earlier of (i) 63 days and (ii) the date of
delivery to the lenders under Entergy’s existing credit facility, after the end of each of
the first three fiscal quarters of each fiscal year, the unaudited consolidated balance
sheet and

5

 

related statements of income, stockholders’ equity and cash flows showing the
financial condition as of the close of such fiscal quarter of Entergy and its consolidated
subsidiaries at such time and the results of its operations and the operations of such
consolidated subsidiaries during such fiscal quarter and the then elapsed portion of the
fiscal year, and comparative figures for the same periods in the immediately preceding
fiscal year; and

     (c) Certifications with Financial Reports. Concurrently with any delivery of
financial statements under paragraph (a) or (b) above and each quarter and/or year
thereafter, a certificate of a Financial Officer of the Borrower certifying that (i) no
condition or event has occurred that would cause them to believe that a Default or Event of
Default has occurred and (ii) no Event of Default or Default has occurred or, if an Event
of Default or Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto.

     SECTION 1.04. Information Regarding Collateral. To the extent incurred in reliance on
the exception set forth in Section 1.02(aa) of Annex VI, provide written notice of the imposition
of any Liens, restrictions, regulations, Easements, exceptions or reservations of any Governmental
Authority on any Mortgaged Property or Core Asset..

     SECTION 1.05. SEC Filings. Promptly after the same become publicly available, provide
notice to the Administrative Agent for posting on the Approved Electronic Platform that a filing in
relation to the Borrower has been made with the SEC.

6

 

Annex VI

Signing Date Negative Covenants

     The Borrower covenants and agrees with each Lender that, from time to time after the Signing
Date, so long as this Agreement shall remain in effect and until the earlier of (i) the Funds
Availability Date and (ii) the Outside Date, the Borrower will, and will cause each of the
Restricted Subsidiaries to comply with the negative covenants set forth in this Annex VI.

     Notwithstanding anything to the contrary contained in this Annex VI, the Borrower and its
Restricted Subsidiaries shall be permitted to undertake any action necessary to consummate the
Reorganization and the Separation, in each case pursuant to and in accordance with the Registration
Statement and the Separation Documents; provided that the Borrower and the Restricted
Subsidiaries shall not consummate the Reorganization or Separation in a manner that materially
deviates from the descriptions thereof set forth in the Registration Statement and the Separation
Documents without the prior written consent of the Arrangers and each Lender.

     SECTION 1.01. Indebtedness and Preferred Stock. From the Signing Date, the Borrower
will not, nor will it cause or permit any of its Restricted Subsidiaries to directly or indirectly,
create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to any Indebtedness, and the Borrower will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of
preferred stock except for:

     (a) the incurrence by the Borrower (and the Guarantees thereof by any Subsidiary that
will be a Subsidiary Guarantor) of the Indebtedness created under this Agreement and the
other Loan Documents;

     (b) Indebtedness of the Borrower or any Subsidiary pursuant to a Credit Support
Facility;

     (c) Indebtedness of the Borrower and its Restricted Subsidiaries existing on the
Signing Date and set forth on Schedule 6.01(c) (Signing);

     (d) the incurrence by the Borrower and its Restricted Subsidiaries (other than the
Subsidiaries that will be NY Real Property Subsidiaries) of Additional Intercreditor
Indebtedness; provided that (i)  no Default or Event of Default exists immediately prior
to, or would exist immediately after giving effect to, the incurrence of any such
Indebtedness and (ii) the Borrower would be in compliance with the Financial Covenants for
the Borrower’s most recently ended Test Period for which financial statements are publicly
available immediately preceding the date on which any such Indebtedness is incurred on a
pro forma basis (including a pro forma application of the net proceeds therefrom), as if
such additional Indebtedness (and any other Indebtedness incurred during such Test Period
or from the end of such Test Period through the date on which such calculation is made) had
been incurred at the beginning of the applicable Test Period and was outstanding on such
calculation date; provided, further that if such Additional Intercreditor Indebtedness
takes the form of a revolving credit facility, the tests in the proviso above shall be met
on the date such revolving loan commitments become effective, assuming the incurrence of
the full committed amount of such revolving credit facility);

7

 

     (e) the incurrence by (i) the Borrower of Indebtedness in respect of the Senior Notes
and, if applicable, any Funds Availability Indebtedness and (ii) any Subsidiary that will
be a Subsidiary Guarantor of Indebtedness in respect of the Senior Note Guarantees and, if
applicable, any Funds Availability Indebtedness Guarantees;

     (f) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness represented by Attributable Debt, Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the purpose of
financing all or any part of the purchase price or cost of design, construction,
installation, repair, restoration, expansion or improvement or lease of property (real or
personal), plant or equipment used in the business of the Borrower or any of its Restricted
Subsidiaries or incurred within 270 days after any of the foregoing, in an aggregate
principal amount, including (without duplication) all Permitted Refinancing Indebtedness
incurred to refund, modify, extend, renew, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (f), not to exceed $600,000,000 at any time
outstanding;

     (g) the incurrence by the Borrower or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance, replace, defease, modify, extend, renew or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted by this Agreement to be incurred under
clauses (b), (c), (e), (f), (o), (p) and (x) of this Section 1.01; provided,
however that with respect to the Subsidiaries that will be NY Real Property
Subsidiaries, such Permitted Refinancing Indebtedness shall be permitted only with respect
to clauses (b), (c), (e), (f), (o) and (x) of this Section 1.01;

     (h) the incurrence by the Borrower and the Restricted Subsidiaries of unsecured
intercompany Indebtedness that would constitute an Investment permitted under Sections
6.05(g) or 6.05(j); provided, however that (i) if the Borrower or any
Subsidiary that will be a Subsidiary Guarantor is the obligor on such Indebtedness and the
payee is not the Borrower or a Subsidiary that will be a Subsidiary Guarantor, such
Indebtedness must be expressly subordinated to the prior payment in full in cash of all
Secured Obligations (which subordination may be pursuant to an Intercompany Debt
Subordination Agreement or any other agreement containing terms satisfactory to the
Administrative Agent and the Collateral Agent executed and delivered by both the applicable
borrower and lender); and (ii)(A) any subsequent issuance or transfer of Equity Interests
that results in any such Indebtedness being held by a Person other than the Borrower or a
Restricted Subsidiary and (B) any sale or other transfer of any such Indebtedness to a
Person that is not either the Borrower or a Restricted Subsidiary will be deemed, in each
case, to constitute an incurrence of such Indebtedness by the Borrower or such Restricted
Subsidiary, as the case may be, that was not permitted by this clause (h);

     (i) the issuance by any of the Borrower’s Restricted Subsidiaries to the Borrower or
to any of its other Restricted Subsidiaries of shares of preferred stock; provided,
however, that (i) any subsequent issuance or transfer of Equity Interests that
results in any such preferred stock being held by a Person other than the Borrower or a
Restricted Subsidiary and (ii) any sale or other transfer of any such preferred stock to a
Person that is not either the Borrower or a Restricted Subsidiary will be deemed, in each

8

 

case, to constitute an issuance of such preferred stock by such Restricted Subsidiary
that was not permitted by this clause (i);

     (j) the incurrence by the Borrower or any of its Restricted Subsidiaries of Commodity
Hedging Obligations and Interest Rate/Currency Hedging Obligations, provided,
however, that the Subsidiaries that will be NY Real Property Subsidiaries shall not
incur Commodity Hedging Obligations or Interest Rate/Currency Hedging Obligations other
than pursuant to FERC 205 Contracts;

     (k) the Guarantee by the Borrower or any of the Subsidiaries that will be Subsidiary
Guarantors of Indebtedness of the Borrower or a Restricted Subsidiary that was permitted to
be incurred by another provision of this Section 1.01 (other than in respect of self
insurance); provided that, (i) in each such case, if the Indebtedness being
guaranteed is subordinated to the Secured Obligations hereunder, then the Guarantee shall
be subordinated to the same extent as the Indebtedness guaranteed and (ii) in the case of
Guarantees of Indebtedness incurred pursuant to Section 6.01(w), such Guarantees shall be
subordinated on terms at least as restrictive as the subordination terms of the Senior Note
Guarantees;

     (l) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other Financial Institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) inadvertently drawn
against insufficient funds, so long as such Indebtedness is discharged within five Business
Days;

     (m) the incurrence by the Borrower or any of its Restricted Subsidiaries of
Indebtedness in respect of, bankers’ acceptances and performance bonds, bid bonds, appeal
bonds, completion guarantees, bank guarantees, letters of credit, warehouse receipts and
surety bonds provided by the Borrower or a Restricted Subsidiary in the ordinary course of
business;

     (n) the incurrence of Indebtedness that may be deemed to arise as a result of
agreements of the Borrower or any Restricted Subsidiary providing for indemnification,
adjustment of purchase price (including earn outs) or any similar obligations, in each
case, incurred in connection with any acquisition that would constitute a Permitted
Acquisition or Investment which would be permitted pursuant to Sections 6.05(g), 6.05(h)
and 6.05(j) or Asset Sale or other disposition not prohibited hereunder; provided
that in the case of any such Asset Sale or disposition, the aggregate maximum liability
associated with such provisions may not exceed the gross proceeds (including non-cash
proceeds) of such disposition;

     (o) the incurrence of Indebtedness of a Person or Indebtedness attaching to assets of
a Person that, in either case, becomes a Restricted Subsidiary or Indebtedness attaching to
assets that are acquired by the Borrower or any Restricted Subsidiary, in each case after
the Signing Date as the result of an acquisition that would constitute a Permitted
Acquisition; provided that (i) such Indebtedness existed at the time such Person
became a Restricted Subsidiary or at the time such assets were acquired and, in each case,
was not created in anticipation thereof, (ii) such Indebtedness is not guaranteed in any
respect by the Borrower or any Restricted Subsidiary (other than any such Person that so
becomes a Restricted Subsidiary) and (iii)(A) the Borrower executes, and delivers in

9

 

escrow for release on the Funds Availability Date, pledges of the Capital Stock of
such Person to the Collateral Agent to the extent it would be required under Section 5.10
and (B) such Person shall execute and deliver in escrow for release on the Funds
Availability Date a supplement to the Security Documents (or alternative guarantee and
security arrangements in relation to the Secured Obligations) to the extent it would be
required under Section 5.10;

     (p) the incurrence by the Borrower (other than the Subsidiaries that will be NY Real
Property Subsidiaries) of Indebtedness to finance an acquisition that would be a Permitted
Acquisition; provided that (i) such Indebtedness is not guaranteed in any respect
by any Person other than the Person acquired (the “acquired Person”) as a result of
such acquisition that would be a Permitted Acquisition, and (ii)(A) the Borrower executes,
and delivers in escrow for release on the Funds Availability Date, pledges of the Capital
Stock of such acquired Person to the Collateral Agent to the extent it would be required
under Section 5.10 and (B) such acquired Person shall execute and deliver in escrow for
release on the Funds Availability Date a supplement to the Security Documents (or
alternative guarantee and security arrangements in relation to the Secured Obligations) to
the extent it would be required under Section 5.10;

     (q) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness
consisting of (i) obligations to pay insurance premiums (ii) self-insurance obligations or
(iii) take-or-pay obligations contained in supply agreements, in each case arising in the
ordinary course of business and not in connection with the borrowing of money or Hedging
Obligations;

     (r) [Intentionally omitted]

     (s) Guarantee obligations in respect of any Investment that would be permitted
pursuant to Sections 6.05(a), 6.05(c), 6.05(d), 6.05(e), 6.05(g), 6.05(h), 6.05(j),
6.05(o), 6.05(p) and 6.05(q);

     (t) Cash Management Obligations;

     (u) Indebtedness representing (i) workers compensation claims, (ii) health, disability
or other employee benefits and (iii) deferred compensation to employees, consultants or
independent contractors of the Borrower and the Restricted Subsidiaries incurred in the
ordinary course of business;

     (v) Indebtedness consisting of promissory notes issued by the Borrower or any
Restricted Subsidiary to current or former officers, managers, consultants, directors and
employees (or their respective spouses, former spouses, successors, executors,
administrators, heirs, legatees or distributees) to finance the purchase or redemption of
Capital Stock or Capital Stock Equivalents of the Borrower which would be permitted by
Section 6.06(b);

     (w) additional unsecured Indebtedness; provided that (i) such Indebtedness
matures after, and does not require any scheduled amortization or other scheduled payments
of principal prior to, the Revolving Credit Maturity Date, (ii) such Indebtedness is
incurred by the Borrower; (iii) both immediately prior and after giving effect to the
incurrence thereof, (A) no Default or Event of Default shall exist or result therefrom and

10

 

(B) the Borrower and its Restricted Subsidiaries would be in pro forma compliance with
the Financial Covenants and (iv) to the extent that such incurrence of additional unsecured
Indebtedness exceeds an aggregate principal amount of $20,000,000, the Borrower delivers a
certificate of a Financial Officer to the Administrative Agent at least 2 Business Days
prior to the incurrence of such unsecured Indebtedness stating that the Borrower has
determined in good faith that such terms and conditions satisfy the requirements of this
clause (w);

     (x) the incurrence by the Borrower or any Restricted Subsidiary of Environmental CapEx
Debt or Necessary CapEx Debt (which Indebtedness may be secured to the extent provided in
Section 1.02(bb)); provided that, prior to the incurrence of any such Environmental
CapEx Debt or Necessary CapEx Debt, the Borrower shall deliver to the Administrative Agent
an officers’ certificate by a Financial Officer designating such Indebtedness as
Environmental CapEx Debt or Necessary CapEx Debt, as applicable;

     (y) Indebtedness incurred by the Borrower and its Restricted Subsidiaries in good
faith to invest in nuclear decommissioning trusts or to comply with decommissioning
agreements; and

     (z) all premiums (if any), interest (including post-petition interest), fees,
expenses, charges, and additional or contingent interest on obligations described in
clauses (a) through (y) above.

     For purposes of determining compliance with this Section 1.01, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Indebtedness described in
clauses (a) through (z) above, the Borrower shall, in its reasonable discretion, classify and
reclassify or later divide, classify or reclassify such item of Indebtedness (or any portion
thereof) and will only be required to include the amount and type of such Indebtedness in one or
more of the above clauses.

     SECTION 1.02. Liens. From the Signing Date, the Borrower will not, nor will it cause
or permit any of its Restricted Subsidiaries to directly or indirectly, create, incur, assume or
suffer to exist any Lien of any kind on, or assign any right to receive income or profits on, any
property or asset now owned or hereafter acquired, except:

     (a) Liens held by the Collateral Agent pursuant to the Loan Documents on assets of the
Borrower or any Subsidiary that will be a Subsidiary Guarantor securing the Secured
Obligations of the Borrower or such Subsidiary that will be a Subsidiary Guarantor
(including Liens securing Specified Commodity Hedging Transactions, Specified Credit
Support Facilities and Additional Intercreditor Indebtedness and Related Agreements);

     (b) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds, bid bonds, completion guarantees or other obligations of a like nature
incurred in the ordinary course of business;

     (c) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 1.01(f), (o) and (p) hereof covering only the assets acquired with or financed by
such Indebtedness;

11

 

     (d) Liens existing on the Signing Date and set forth on Schedule 6.02(d)
(Signing);

     (e) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision has been made to the extent required by GAAP;

     (f) Liens of landlords arising by statute and liens of suppliers, mechanics,
repairmen, carriers, materialmen, bailees, warehousemen or workmen and other similar Liens,
in each case (i) imposed by law or arising in the ordinary course of business, (ii) for
amounts not yet due or that are not overdue for a period of more than sixty (60) days or
which are being contested in good faith by appropriate proceedings and (iii) with respect
to which adequate reserves or other appropriate provisions are being maintained to the
extent required by GAAP;

     (g) any exception, minor defect or irregularity (i) listed on the title policies or on
the surveys issued in connection with any real property that would constitute a Mortgaged
Property and (ii) in respect of any real properties that would constitute Mortgaged
Properties following the Signing Date and other real property, other properly recorded
easements, rights of way, licenses, reservations, servitudes, permits, conditions,
covenants, rights of others, restrictions, oil, gas and other mineral interests, royalty
interests and leases, encroachments, protrusions, zoning or land use rights and other
similar charges or encumbrances, and with respect to (i) and (ii) that do not interfere in
any material respect with the Permitted Business conducted at such real property that would
constitute a Mortgaged Property or such other real property;

     (h) Liens to secure any Permitted Refinancing Indebtedness permitted under Section
1.01; provided that such Lien shall be limited to all or part of the same property
and assets that secured or, under the written agreements pursuant to which the original
Lien arose, could secure the original Lien (plus improvements and accessions to such
property or proceeds or distributions thereof);

     (i) Liens incurred or deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security
benefits;

     (j) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Borrower or any of its Restricted
Subsidiaries, including rights of offset and set-off, in each case made in the ordinary
conduct of the Permitted Business;

     (k) Liens arising under leases or subleases of real property that do not, in the
aggregate, materially detract from the value of such real property or interfere with the
ordinary conduct of the Permitted Business as proposed to be conducted at such real
property;

     (l) statutory Liens arising under ERISA incurred in the ordinary conduct of the
Permitted Business;

12

 

     (m) Liens existing on the assets of any Person that becomes a Restricted Subsidiary or
existing on assets acquired, in each case pursuant to an acquisition that would constitute
a Permitted Acquisition, to the extent the Liens on such assets secure Indebtedness which
would be permitted by Section 6.01(o); provided that such Liens attach at all times
only to the same assets that such Liens attached to, and secure only the same Indebtedness
that such Liens secured, immediately prior to such acquisition that would constitute a
Permitted Acquisition;

     (n) Liens on cash and Cash Equivalents (i) deposited by the Borrower or any of the
Restricted Subsidiaries in margin accounts with or on behalf of futures contract brokers or
paid over to other counterparties, or (ii) pledged or deposited as collateral to a contract
counterparty or issuer of surety bonds or issuer of letters of credit by the Borrower or
any of the Restricted Subsidiaries, in each case incurred in the ordinary course of the
Permitted Business to secure Interest Rate/Currency Hedging Obligations that are not
secured by the Lien of the Collateral Agent, Commodity Hedging Transactions (other than
Specified Commodity Hedging Transactions) and Credit Support Facilities (other than
Specified Credit Support Facilities); provided that at the time such Lien is
incurred, the Borrower would be in pro forma compliance with its Financial Covenants as
calculated with the most recent financial information which would be delivered pursuant to
Section 5.05(a) or (b) (as applicable) assuming that such cash and Cash Equivalents were no
longer netted for purposes of the definition of Consolidated Total Net Debt;

     (o) set-off or netting rights granted by the Borrower or any Restricted Subsidiary of
the Borrower pursuant to any Hedging Transactions, solely in respect of amounts owing under
such agreements;

     (p) Liens arising from UCC financing statements filed on a precautionary basis in
respect of operating leases intended by the parties to be true leases (other than any such
leases entered into in violation of this Agreement);

     (q) Liens on cash deposits and other funds maintained with a depositary institution,
in each case arising in the ordinary course of business by virtue of any statutory or
common law provision relating to banker’s liens, including Section 4-210 of the UCC;

     (r) Liens on assets or securities granted or deemed to arise in connection with and
solely as a result of the execution, delivery or performance of contracts to purchase or
sell such assets or securities if such purchase or sale is otherwise permitted hereunder;

     (s) Liens on assets of the Borrower or any Restricted Subsidiary with respect to
Indebtedness in an aggregate principal amount not to exceed $200,000,000 at any time
outstanding; provided, however, that the assets of the Subsidiaries which
will be NY Real Property Subsidiaries shall not be encumbered by Liens in respect of
Indebtedness in an aggregate principal amount exceeding $50,000,000 at any time
outstanding;

     (t) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for sale or purchase of goods entered into by the Borrower or any Restricted
Subsidiary in the ordinary course of the Permitted Business;

13

 

     (u) Liens deemed to exist in connection with Investments in repurchase agreements
which would be permitted under Section 6.05;

     (v) Liens in respect of Cash Management Obligations;

     (w) Liens solely on any cash earnest money deposits made by the Borrower or any
Restricted Subsidiary in connection with any letter of intent or purchase agreement for
Permitted Acquisitions which would be made under Section 6.05(h);

     (x) restrictions contained in joint venture agreements triggering a default upon the
Borrower or a Restricted Subsidiary’s pledge of its Equity Interests or other ownership
interests in such joint venture provided that the Loan Parties would be in
compliance with Section 5.15 when such Liens arise;

     (y) rights reserved to or vested in others to take or receive any part of, or
royalties related to, the power, gas, oil, coal, lignite, nuclear fuel or other minerals or
timber generated, developed, manufactured or produced by, or grown on, or acquired with,
any property of the Borrower and the Restricted Subsidiaries and Liens upon the production
from property of power, gas, oil, coal, lignite, nuclear fuel or other minerals or timber,
and the by-products and proceeds thereof, to secure the obligations to pay all or a part of
the expenses of exploration, drilling, mining or development of such property only out of
such production or proceeds;

     (z) Liens on cash and Cash Equivalents deposited by the Borrower or any Restricted
Subsidiary in margin accounts with or on behalf of credit clearing organizations,
independent system operators, regional transmission organizations state agencies or federal
agencies;

     (aa) Liens, restrictions, regulations, Easements, exceptions or reservations of any
Governmental Authority; and

     (bb) Liens to secure Environmental CapEx Debt or Necessary CapEx Debt permitted by
Section 1.01(x) that encumber only the assets purchased, installed or otherwise acquired
with the proceeds of such Environmental CapEx Debt or Necessary CapEx Debt;
provided, that the Liens securing such Indebtedness must be pari passu with, or
junior to, the Liens on such assets securing the Secured Obligations.

     (cc) Liens on Indebtedness permitted by Sections 1.01(k) or 1.01(z), to the extent
that Liens are permitted on the underlying Indebtedness with respect thereto.

     SECTION 1.03. Mergers, Consolidations and Sales of Assets. From the Signing Date, the
Borrower will not, nor will it cause or permit any of its Restricted Subsidiaries to: (a) Merge
into or consolidate with any other Person, or permit any other Person to merge into or consolidate
with it, or liquidate or dissolve, or (b) sell, transfer, lease, issue or otherwise dispose of (in
one transaction or in a series of transactions) all or substantially all of the assets (whether now
owned or hereafter acquired) of the Borrower, except that if at the time thereof and immediately
after giving effect thereto no Event of Default or Default shall have occurred and be continuing
(i) any Restricted Subsidiary (other than a Subsidiary that will be a NY Real Property Subsidiary)
may merge into the Borrower in a transaction in which the Borrower is the surviving corporation,
(ii) any Restricted Subsidiary (other than a Subsidiary that will be a NY Real Property Subsidiary)

14

 

may merge into or consolidate with any other Restricted Subsidiary in a transaction in which
the surviving entity is a Restricted Subsidiary and no Person other than the Borrower or a
Restricted Subsidiary receives any consideration (provided that if any party to any such
transaction is (A) a Loan Party, the surviving entity of such transaction shall be a Loan Party and
(B) a Domestic Subsidiary, the surviving entity of such transaction shall be a Domestic
Subsidiary), (iii) any merger or consolidation of a Restricted Subsidiary (other than a Subsidiary
that will be a NY Real Property Subsidiary) will be permitted in connection with an Investment
which would be permitted by Sections 6.05(h) or 6.05(j) and (iv) any Restricted Subsidiary (other
than a Subsidiary that will be a NY Real Property Subsidiary) may liquidate or dissolve or, solely
for purposes of reincorporating in a different jurisdiction, merge if the Borrower determines in
good faith that such liquidation or dissolution or merger is in the best interests of the Borrower
and could not reasonably be expected to result in a Material Adverse Effect.

     SECTION 1.04. Business Activities. From the Signing Date, the Borrower will not, nor
will it cause or permit any of its Restricted Subsidiaries to: (a) With respect to any Restricted
Subsidiary, enter into any business, either directly or through any Restricted Subsidiary, except
for the Permitted Business. Notwithstanding the foregoing, the Subsidiaries that will be NY Real
Property Subsidiaries shall engage solely in the business such Subsidiaries that will be NY Real
Property Subsidiaries were engaged in on the Signing Date.

     (b) In the case of the Borrower, (i) hold any assets other than the Equity Interests referred
to in clauses (iii)(B) and (iii)(C) below, (ii) have any material liabilities other than
liabilities under or permitted by the Loan Documents and tax liabilities in the ordinary course of
business or (iii) engage in any business or activity other than (A) the Reorganization and the
Separation Transactions, (B) owning the Equity Interests of the Restricted Subsidiaries and EquaGen
and activities incidental or related thereto or to the maintenance of the corporate existence of
the Borrower or compliance with Applicable Law, (C) owning indirectly through the Restricted
Subsidiary their respective Subsidiaries, (D) participating in tax, accounting and other
administrative activities as members of a consolidated group of companies and (E) issuing its own
Capital Stock.

     (c) Permit any Person other than Entergy to hold any Equity Interests of the Borrower prior
to the consummation of the Separation Transactions.

     SECTION 1.05. Fiscal Year. With respect to the Borrower, change its fiscal year-end
to a date other than December 31; provided, however, that the Borrower may, upon
written notice to the Administrative Agent, change the financial reporting convention specified
above to any other financial reporting convention reasonably acceptable to the Administrative
Agent, in which case the Borrower and the Administrative Agent will, and are hereby authorized by
the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such
change in financial reporting, provided, that with respect to any such change that delays
the fiscal year-end, the Borrower shall deliver financial information which would be required by
Section 5.05(b) for all intervening fiscal quarters, including the fiscal quarter that was formerly
the year-end.

     SECTION 1.06. No Speculative Hedging Transactions. Neither the Borrower nor any
Restricted Subsidiary shall engage in any speculative Hedging Transactions except (i) as set forth
in the definition of Commodity Hedging Transactions and (ii) Interest Rate Hedging Transactions and
Currency Hedging Transactions for the sole purpose of hedging in the normal course of the Permitted
Business. For the avoidance of doubt, the determination as to whether or not a
Hedging Transaction is speculative shall be made as of the date such Hedging Transaction is
entered into by the Borrower or the applicable Restricted Subsidiary.

15ex10-1.htm

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

 

 

This SEPARATION AGREEMENT (the “Agreement”) made as of the 27th day of September, 2009, among Affiliated Computer Services, Inc. (the “Company”), Xerox Corporation (“Parent”) and Darwin Deason (the “Executive”).

 

WHEREAS, the Executive and the Company are currently parties to that certain Amended and Restated Employment Agreement made and effective as of the 7th day of December, 2007, and amended as of December 30, 2008 (the “Employment Agreement”);

 

WHEREAS, the Executive currently serves as the Chairman on the Board of Directors (the “Board”) of the Company and previously served as its Chief Executive Officer;

 

WHEREAS, the Company, Parent, and a subsidiary of Parent have, as of the date hereof, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the stock of the Company will be converted into the stock of Parent (as well as the right to receive certain cash consideration) through a merger (the “Merger”);
and

 

WHEREAS, the parties hereto hereby acknowledge that the Executive intends to, and will, resign as Chairman of the Board and from all other positions the Executive holds at the Company or any of its subsidiaries effective upon consummation of the Merger upon the Effective Time, as defined in the Merger Agreement (such date, the “Merger
Date”).

 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements of the parties herein contained, the parties hereto agree as follows:

 

1.           Effectiveness.  This Agreement shall constitute a binding obligation of the parties as of the date hereof, but the operative provisions of this Agreement shall only become effective as of the Merger
Date; provided, however, that this Agreement will be null and void ab initio and of no further force or effect if the Merger Agreement is terminated prior to the Merger Date.  Upon the effectiveness of this Agreement, the Employment Agreement shall cease to have any further force or effect, without further obligation of either party thereunder, and shall be deemed replaced in its entirety by this Agreement.

 

2.           Resignation.  Upon, and subject to the occurrence of, the Merger Date, the Executive shall be deemed to have resigned immediately, and without any further action being necessary, from his position
as Chairman of the Board and all other positions that he may hold at the Company and its subsidiaries and affiliates.

 

 

 

 

 

 

 

 

3.           Payments.  Upon, and subject to the occurrence of, the Merger Date, the Executive shall be entitled to the following:

 

(a)           Severance Payments.  The Executive shall receive from the Company:

 

(i)           an amount in cash equal to the aggregate of the amount of base salary (assuming an annual base salary rate of $1,017,437) that otherwise would have been payable to the Executive from the Merger Date through May 18, 2014, which shall be payable in equal monthly installments
commencing on the first business day of the first month following the Merger Date and continuing through May 18, 2014; provided, however, that no such payment shall be made until the first business day that is at least six months after the Merger Date (the “Delayed Payment Date”), and on the Delayed Payment Date the Executive shall receive from the Company an amount in cash equal to the aggregate amount of the payments that would have been made from the Merger Date through the Delayed Payment Date
in the absence of this proviso, without interest; and

 

(ii)           (A) four guaranteed annual bonus payments of $2,543,592.20 each in August 2010, 2011, 2012 and 2013 and (B) in August, 2014, a guaranteed pro-rata bonus in the amount of $2,243,935, which represents the aggregate target amount of the annual bonuses that would have been
payable to the Executive during the period beginning on July 1, 2013 and ending on May 18, 2014.

 

(b)           Continued Benefits.  Until the earlier of May 18, 2014 or the date on which the Executive becomes employed by a new employer, the Company shall, (A) to the extent that benefits under any of the Company’s
medical, dental, life insurance, disability and accidental death and dismemberment benefit plans, or materially equivalent plans maintained by the Company in replacement thereof (the “Health Plans”) will not be taxable to the Executive, provide continued coverage at the Company’s expense under any such plans to the Executive and his spouse, or (B) to the extent that benefits under any Health Plan would  be taxable to the Executive, access to the Executive and his spouse to such Health
Plan by his paying the full cost of coverage thereunder for the coverage period under this Section 3(b) and prompt reimbursement by the Company for the Executive’s premiums for continued coverage under such Health Plan in an amount equal to the cost of such coverage (provided, in the case of this clause (B), the amount of reimbursement during the period from the Merger Date through the Delayed Payment Date shall be paid to the Executive on the Delayed Payment Date, without interest), in either case for
the Executive and the Executive’s dependents’ at the highest level provided to the Executive immediately prior to the Merger Date, provided, however, that if the Executive becomes employed by a new employer which maintains a major medical plan that either (i) does not cover the Executive with respect to a pre-existing condition which was covered under the Company’s major medical plan, or (ii) does not cover the Executive for a designated waiting period, the Executive’s coverage under the
Company’s major medical plan shall continue (but shall be limited in the event of noncoverage due to a preexisting condition, to the preexisting condition itself) until the earlier of the end of the applicable period of noncoverage under the new employer’s plan or May 18, 2014.  Except as specifically permitted by Section 409A (as defined below), the benefits provided to the Executive under this Subsection 3(b) during any calendar year shall not affect the benefits to be provided to the
Executive under this Subsection 3(b) in any other calendar year and the right to such benefits cannot be liquidated or exchanged for any other benefit, in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.

 

 

 

 

2

 

 

 

(c)           Payment of Accrued But Unpaid Amounts.  Within two (2) business days after the Merger Date, the Company shall pay the Executive any unpaid portion of compensation previously earned by the Executive.

 

(d)           Post-Retirement Welfare Benefits.  For purposes of determining the Executive’s eligibility for post-retirement benefits under any welfare benefit plan (as defined in Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended) maintained by the Company immediately prior to the Merger Date and in which the Executive then participated, the Executive shall be credited with an additional number of credited years of service and additional age credit equal to the period between the Merger Date and May 18, 2014.  If, after taking into account the credited participation and age, the Executive would have been eligible for post-retirement benefits, the Executive shall receive, commencing
on the Merger Date, post-retirement benefits based on the terms and conditions of the applicable plans in effect immediately prior to the Merger Date; provided, that to the extent that any such benefits would be taxable to the Executive, the Executive shall pay the full cost of coverage thereunder for the coverage period set forth in the applicable plan and the Company will promptly reimburse the Executive for the cost of the premiums for continued participation in such post-retirement benefits in an amount equal
to the cost of such participation (provided, that the amount of such reimbursements for the period from the Merger Date through the Delayed Payment Date shall be paid to the Executive on the Delayed Payment Date, without interest).

 

(e)           Perquisites.  Until May 18, 2014, the Executive shall be entitled to continue to receive the perquisites and fringe benefits in accordance with present practices existing on or prior to the date hereof
or pursuant to an arrangement entered into with the consent of Parent, including without limitation, those listed and described on Exhibit A hereto, provided, that (i) Executive shall have no right to use of the Company’s aircraft, but the Company shall instead pay to the Executive on the fifth (5th) business day of each calendar quarter (or the fifth business day after the Merger Date with regard to the first payment) during the period between the Merger Date and May 18, 2014, an amount equal to the cost
the Executive would incur to charter an aircraft comparable to the Company’s current airplane (as determined by the charter cost schedule for comparable aircraft of Million Air Dallas luxury jet service (or, if it is not doing such chartering, a comparable company) for 31 1/4 flight hours per calendar quarter (or pro rata for any partial quarter during the period), unless the parties mutually agree in writing for any calendar quarter that the Executive will use the Company aircraft instead of being provided
with payment for such quarter) and (ii) the Executive will continue to be provided with his current personal security arrangements, provided that the parties, to the extent permitted under Code Section 409A and other applicable tax laws, may mutually agree in writing for any period to pay to Executive an amount in cash equal to the cost of obtaining such personal security arrangements for such period.  The Executive acknowledges that the Company reflected in its most recent proxy, to the extent required
by, and in accordance with, applicable securities laws the costs of providing such security.

 

 

 

 

 

3

 

 

 

(f)           Effect on Existing Plans.  Except as provided below, all “change of control” or “change in control” provisions applicable to the Executive and contained in any plan, program, agreement or arrangement maintained on or after the date hereof
by the Company (including, but not limited to, any stock option, restricted stock or pension plan) shall remain in effect for such period after the date of a change of control or change in control as is necessary to carry out such provisions and provide the benefits payable thereunder, and may not be altered in a manner which adversely affects the Executive without the Executive’s prior written approval.  No benefits shall be paid to the Executive, however, under any severance plan maintained
generally for the employees of the Company if the Executive is eligible to receive benefits under this Section 3.

 

(g)           Outplacement Counseling.  The Company shall reimburse all reasonable expenses incurred by the Executive for professional outplacement services by qualified consultants selected by the Executive, provided
that such expenses are incurred on or prior to the last day of the second calendar year following the calendar year in which the Executive’s separation from service (within the meaning of Section 409A) occurs, in accordance with Treas. Reg. Section 1.409A-1(b)(9)(v) or any successor thereto.  Such expenses shall be reimbursed no later than the last day of the third calendar year following the calendar year in which the Executive’s separation from service (within the meaning of Section 409A)
occurs, in accordance with Treas. Reg. Section 1.409A-1(b)(9)(v) or any successor thereto.

 

(h)           Mitigation.  The Executive shall not be required to seek other employment after the Merger Date and any compensation earned from other employment shall not reduce the amounts otherwise payable under
this Agreement.

 

(i)           Gross-up.  In the event it shall be determined that any payment, benefit or distribution (or combination thereof) by the Company or Parent, or any trust established by the Company, Parent or any other
person or entity for the benefit of its employees, to or for the benefit of the Executive payable pursuant to the terms of this Agreement, the Prior Agreement or otherwise pursuant to the terms of any compensatory arrangement between the Company and the Executive on or prior to the date hereof (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) and any interest or penalties are incurred by the Executive
with respect to such excise tax (the excise tax, together with interest and penalties thereon, hereinafter collectively referred to as the “Excise Tax”), the Executive shall be entitled to receive an additional payment (a “Gross-up Payment”) in an amount such that after payment by the Executive of all taxes, including, without limitation, any income taxes and the Excise Tax imposed upon the Gross-up Payment, the Executive retains an amount of the Gross-up Payment equal to the Excise Tax
imposed upon the Payments.  Subject to the provisions set out below, all determinations required to be made under this Section 3, including whether and when a Gross-up Payment is required and the amount of such Gross-up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Ernst & Young LLP unless the Executive and the Company mutually agree to use another nationally recognized
certified public accounting firm as may be agreed by the Executive and the Company (the “Accounting Firm”).  All fees and expenses of the Accounting Firm shall be borne solely by the Company.  Any Gross-up Payment, as determined pursuant to this Section 3, shall be paid by the Company to the Executive within five (5) days after the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall so indicate to the Executive in writing.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.  The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-up Payment.  Such notification shall be given no later than ten (10) business days after the Executive is informed in writing of such claim and shall apprise the Company of
the nature of the claim and the date of requested payment.  The Executive shall not pay the claim prior to the expiration of the thirty (30) day period following the date on which it gives notice to the Company.  If the Company notifies the Executive in writing prior to the expiration of the period that it desires to contest such claim, the Executive shall:

 

(1)           give the Company any information reasonably requested by the Company relating to such claim;

 

 

 

 

4

 

 

 

(2)           take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;

 

(3)           cooperate with the Company in good faith in order to effectively contest such claim; and

 

(4)           permit the Company to participate in any proceedings relating to such claim

 

Without limitation on the foregoing provisions of this Section 3, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option,
either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administration tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of the contest; provided, further, that if the Company directs the Executive to pay any claim and sue for a refund, the Company shall advance the amount of the payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest
or penalties with respect thereto) imposed with respect to the advance or with respect to any imputed income with respect to the advance.  In the event that the Company exhausts its remedies pursuant to this Section 3 and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Gross-up Payment required and such payment shall be promptly paid by the Company to or for the benefit of the Executive.  If, after the receipt
by the Executive of an amount advanced by the Company pursuant to Section 3, the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by the Executive of an amount advanced by the Company pursuant to this Section 3, a determination is made that the Executive shall not be entitled to any refund with
respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-up Payment required to be paid.  Any Gross-Up Payment or other payment in respect of Excise Tax or income tax or related interest or penalties payable
to the Executive pursuant to this Subsection 3(i) shall be paid to the Executive as soon as practicable after the applicable liability is incurred, but in any event not later than the last day of the calendar year after the calendar year in which the Executive remits the applicable taxes, interest or penalties to the applicable taxing authority, in accordance with Treas. Reg. Section 1.409A-3(i)(1)(v) or any successor thereto.  Furthermore, any amounts that the Executive becomes entitled to receive
in respect of costs and expenses incurred in connection with a contest relating to this Subsection 3(i) shall be paid to the Executive as soon as practicable after the applicable cost or expense is incurred.  Subject to any earlier time limits set forth in this Section 3(i), all payments and reimbursements to which the Executive is entitled under this Section 3(i) shall be paid to or on behalf of the Executive not later than the end of the taxable year of the Executive next following the taxable year
of the Executive in which the Executive (or the Company, on the Executive’s behalf) remits the related taxes (or, in the event of an audit or litigation with respect to such tax liability, not later than the end of the taxable year of the Executive next following the taxable year of the Executive in which there is a final resolution of such audit or litigation (whether by reason of completion of the audit, entry of a final and non-appealable judgment, final settlement, or otherwise)).

 

(j)           Indemnification; Director’s and Officer’s Liability Insurance.  The Executive shall, after the Merger Date, retain all rights to indemnification under applicable law or under the Company’s
Certificate of Incorporation or Bylaws, as they may be amended or restated from time to time.  In addition, the Company shall maintain Director’s and Officer’s liability insurance on behalf of the Executive, at the level in effect immediately prior to the Merger Date until May 18, 2014, and throughout the period of any applicable statute of limitations.

 

 

 

 

5

 

 

 

4.           Office and Support.  Until May 18, 2014, the Company will provide the Executive, at the Executive’s home office, with office equipment and secretarial and administrative support (including equipment
and technical and other support), consistent with current practices (including, to the extent reasonably practicable, the Executive’s two current executive assistants or, if not reasonably practicable, staff of materially equal qualifications and level).

 

5.           Income Tax Indemnity.  The Company shall make an additional payment to the Executive to the extent that the Executive incurs additional federal, state and/or local income tax or FICA tax liabilities
(but excluding any taxes attributable to any arrangement being deemed to be discriminatory under Section 105(h) of the Code (other than as a result of a modification or change to Section 105(h) after the date hereof)) in respect of the payments and benefits provided under this Agreement that would not have been incurred by the Executive with respect to such payments and benefits had he remained in his position as Executive Chairman of the Board of the Company from the Merger Date through May 18, 2014 (“Additional
Income Tax”), including, without limitation, the payments and/or benefits provided in respect of the Executive’s aircraft and personal security benefits set forth in this Agreement.  The Company shall make payment (the “Additional Gross-Up Payment”) to the Executive such that the net amount the Executive retains, after paying any federal, state, or local income tax or FICA tax on the Additional Gross-Up Payment, shall be equal to the Additional Income Tax.  The Company
and the Executive shall calculate, adjust (if necessary), and pay or repay the Additional Gross-Up Payment in accordance with the procedures specified in Section 3(i) (but substituting “Additional Income Tax” for “Excise Tax” wherever the latter term appears in Section 3(i)).

 

6.           Unauthorized Disclosure.  (a)  Until the second anniversary of the Merger Date, the Executive shall not, without the written consent of the Board or a person authorized thereby, disclose
to any person, other than an employee of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties as an executive of the Company or a may be required by law or regulations, any material confidential information obtained by him while in the employ of the Company with respect to any of the Company’s products, systems, customers or organization, the disclosure of which he knows will be materially damaging to the Company;
provided, however, that confidential information shall not include any information known generally to the public (other than as a result of unauthorized disclosure by the Executive) or any information of a type not otherwise considered confidential by persons engaged in the same business or a business similar to that conducted by the Company.

 

(b)           The foregoing provisions of this Section 6 shall be binding upon the Executive’s heirs, successors and legal representatives.

 

7.           Successors; Binding Agreement.  (a)  The Company and Parent will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company or Parent, as applicable, by agreement in form and substance satisfactory to the Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company or Parent would be required to perform it if no such succession had taken place.  Failure of the Company or Parent to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement.  As used in
this Agreement, (i) “Company” or “Parent” shall mean the Company or Parent, as applicable, as hereinbefore defined and any successor to its business and/or all or part of its assets as aforesaid which executes and delivers the agreement provided for in this Section 7 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law and (ii) following the Merger Date, “Board” shall mean Parent’s Board of Directors.

 

 

 

 

6

 

 

 

 

(b)           This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive
should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate.

 

8.           Notice.  For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by United States registered mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

Darwin Deason

At the address most recently on the books of the Company

If to the Company:

 

Affiliated Computer Services, Inc.

2828 North Haskell Avenue

Dallas, Texas 75204

Attention: General Counsel

If to Parent:

 

45 Glover Avenue

Norwalk, CT 06850

Attention: General Counsel

or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

 

 

 

 

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9.           Miscellaneous.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and such officer
as may be specifically designated by the Board.  No waiver by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, unless specifically referred to herein, with respect to the subject matter hereof have been made by either party
which are not set forth expressly in this Agreement.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas.  Capitalized terms used but not otherwise defined herein shall have the meanings assigned thereto under the Merger Agreement.

 

10.           Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall
remain in full force and effect.

 

11.           Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

12.           Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Dallas, Texas, in accordance with the rules of the American
Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of Section 6 hereof.

 

13.           Section 409A of the Code.  The provisions of this Section 13 shall apply notwithstanding any provision in this Agreement to the contrary.

 

(a)           Intent to Comply with Section 409A.  It is intended that the provisions of this Agreement comply with, or be exempt from, Section 409A of the Code and the Treasury Regulations promulgated thereunder
(“Section 409A”), and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.

 

(b)           Six-Month Delay of Certain Payments.  It is hereby acknowledged that, at the time of the Executive’s separation from service (within the meaning of Section 409A), (i) the Executive will be a
specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time) and (ii) any amount payable under this Agreement or any other plan, policy, arrangement or agreement of or with the Company or any affiliate thereof (this Agreement and such other plans, policies, arrangements and agreements, the “Company Plans”) that constitutes nonqualified deferred compensation (within the meaning of Section 409A) the payment of which is required
to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company (or an affiliate, as applicable) shall not pay any such amount on the otherwise scheduled payment date but shall instead accumulate such amount and pay it, without interest, on the Delayed Payment Date.  Any benefits or service to be provided during such six month delay that is nonqualified deferred compensation shall be fully paid for by the Executive
and the Company shall reimburse the Executive therefore on the Delayed Payment Date, without interest, and thereafter promptly following the Executive’s incurring such costs.

 

 

 

 

8

 

 

 

 

(c)           Benefits and Reimbursements.  Except as specifically permitted by Section 409A, the benefits and reimbursements provided to the Executive under this Agreement and any Company Plan during any calendar year shall not
affect the benefits and reimbursements to be provided to the Executive under the relevant section of this Agreement or Company Plan in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.  Further, in the case of reimbursement payments, such payments shall be made to the Executive on or before the last day of the calendar
year following the calendar year in which the underlying fee, cost or expense is incurred.

 

 

 

9

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

 

	
AFFILIATED COMPUTER SERVICES. INC.

	  
	
By:
	
/s/ Lynn Blodgett

	  	
Name:  Lynn Blodgett

	  	
Title:    CEO

 

 

 

[Signature Page to Separation Agreement]

 

 

 

 

	
XEROX CORPORATION

	  
	
By:
	
/s/ James A. Firestone

	  	
Name:  James A. Firestone

	  	
Title:    Executive Vice President &

President, Corporate Operations

 

 

 

 

[Signature Page to Separation Agreement]

 

 

 

 

 

 

 

	
DARWIN DEASON

	 
	 By: 	/s/ Darwin Deason  
	  	
Darwin Deason

	  	  

 

 

 

 

 

[Signature Page to Separation Agreement]

 

 

 

 

 

 

 

 

 

 

Exhibit A

(Perquisites)

 

Use of Company aircraft as described in Section 3(e)

Personal security

Accounting and administrative Services

Tax & estate planning

Auto expense

Golf club dues

Umbrella liability insurance premiums

2001 Mercedes insurance

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