Document:

Exhibit 10.29 - 2005 Performance Bonus Plan

ELIZABETH ARDEN, INC.

2005 Performance Bonus Plan

          1.    Purpose.    The Elizabeth Arden, Inc. 2005 Performance Bonus Plan (the "Plan") is intended to provide cash incentives which will attract, retain and motivate highly competent persons as executive officers of Elizabeth Arden, Inc. (the "Company") and its subsidiaries and affiliates, on the basis of performance goals established for them under the Plan and to ensure that cash bonus payments ("Bonus") are in accordance with the arrangements established by the Committee (as defined in Section 4).

          2.    Authority to Establish Performance Goals and Bonuses

                    (a)    The Committee will have the authority to establish for a Participant, a performance goal, and the formula for calculating a Participant's Bonus on the basis of performance goals or criteria established under or pursuant to the Plan (each a "Bonus Formula"), for any fiscal year of the Company, or for a period which is shorter or longer than a single fiscal year (the "Fiscal Period").  The performance goals may be based on achievement of various key performance indicators or business criteria or completion of certain projects that benefit the Company and apply to the individual Participant or the Participant's business unit (the "Individual Criteria") and may be a single goal or a range with a minimum goal up to a maximum goal, with corresponding increases in the Bonus up to the maximum award set by the Committee and as may be limited by this Plan.  The Committee may disregard, at its discretion, the effect of one-time charges and extraordinary events such as asset write-downs, litigation judgments or settlements, changes in tax laws, accounting principles or other laws or provisions affecting reported results, accruals for reorganization or restructuring, and any other extraordinary non-recurring items, acquisitions or divestitures.  Notwithstanding the attainment of Individual Criteria, the Committee reserves the right to nullify a Bonus under this Plan if the Company fails to achieve certain performance goals of the Company as set forth pursuant to the Company's 2005 Management Bonus Plan. 

                    (b)    The Individual Criteria and the Bonus Formula for a Participant shall be established by the Committee or one or more designated officers (the "Designated Officers") no later than 120 days after the beginning of the Fiscal Period to which the Bonus Formula relates. 

                    (c)    Each Participant will be assigned Individual Criteria.  The Committee, in its sole discretion, may elect to award a Bonus if any or all of the Individual Criteria were not achieved due to certain extenuating circumstances.  Each Participant's maximum Bonus will be 200% of his or her base salary. Under no circumstances will any Participant be paid a Bonus exceeding U.S. $3 million for any fiscal year of the Company.

                    (d)    When the Committee establishes a performance goal and Bonus Formula for a Participant, the Committee may provide (i) that the Bonus will be paid in a single lump sum or that the Bonus will be paid over a period of years, with or without interest on deferred payments, and (ii) if a Bonus is to be paid over a period of years, whether the right to the unpaid portion of the Bonus will be forfeited if the Participant ceases to be employed by the Company before the Bonus is paid in full. 

          3.    Review of Payment of Bonuses.  Promptly after the end of the applicable Fiscal Period, the management of the Company will present to the Committee a list showing with regard to each Participant who has become eligible for consideration of a Bonus with regard to that Fiscal Period (i) the Participant's performance goal or Bonus Formula with regard to that Fiscal Period, (ii) the extent to which the performance goal was achieved or exceeded, or other applicable information relating to the performance goal or otherwise applicable to the Participant's Bonus Formula, and (iii) the Bonus, if any, to which the Participant is entitled with regard to the Fiscal Period.  No Bonus may be paid to a Participant with regard to a Fiscal Period until the Committee certifies that the Bonus with regard to that Participant shown on the list (or on an amended list) is correct based upon the performance goal and the Bonus Formula established for the Participant with regard to the Fiscal Period or other determining factor the Committee considers. 

          4.    Administration 

                    (a)    The Plan will be administered by the committee (the "Committee") appointed by the Board of Directors of the Company (the "Board") from among its members (which may be the Compensation Committee of the Board) and shall be comprised, unless otherwise determined by the Board, solely of not less than two members who shall be (i) "Non-Employee Directors" within the meaning of Rule 16b-3(b)(3) (or any successor rule) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), (ii) "outside directors" within the meaning of Treasury Regulation Section 1.162-27(e)(3) under the Internal Revenue Code of 1986, as amended (the "Code") and (iii) "independent directors" as defined under the applicable rules of the Nasdaq Stock Market or the Securities and Exchange Commission ("SEC").  The Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it deems necessary for the proper administration of the Plan and to make such determinations and interpretations and to take such action in connection with the Plan and any Bonus Formula established hereunder as it deems necessary or advisable.  All determinations and interpretations made by the Committee or its Designated Officers shall be binding and conclusive on all participants and their legal representatives.  No member of the Committee and no employee of the Company shall be liable for any act or failure to act hereunder, except in circumstances involving his or her bad faith, gross negligence or willful misconduct, or for any act or failure to act hereunder by any other member or employee or by any agent to whom duties in connection with the administration of this Plan have been delegated.  The Company shall indemnify members of the Committee and any agent of the Committee who is an employee of the Company, a subsidiary or an affiliate against any and all liabilities or expenses to which they may be subjected by reason of any act or failure to act with respect to their duties on behalf of the Plan, except in circumstances involving such person's bad faith, gross negligence or willful misconduct.

                    (b)    To the extent permitted by law, the Committee may delegate to one or more of its members, or to one or more agents, such administrative duties as it may deem advisable, and the Committee, or any person to whom it has delegated duties as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan.  The Committee may employ such legal or other counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion or computation received from any such counsel, consultant or agent.  Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company, or the subsidiary or affiliate whose employees have benefited from the Plan, as determined by the Committee.

          5.    Participants.    Participants will be limited to those executive officers of the Company or its subsidiaries and affiliates as the Committee, in its sole discretion, determines to be important or responsible for contributing to the success and future growth and profitability of the Company and whom the Committee may designate from time to time to receive Bonuses under the Plan (the "Participants").  Designation of a Participant in any year shall not require the Committee to designate such person to receive a Bonus in any other year or, once designated, to receive the same type or amount of Bonus as granted to the Participant in any other year.  The Committee shall consider such factors as it deems pertinent in selecting Participants and in determining the type and amount of their respective Bonuses.

          6.    No Rights to Continued Employment.    Nothing in the Plan or in the establishment of any performance goal or Bonus Formula, and no award of any Bonus which is payable immediately or in the future (whether or not future payments may be forfeited), will give any Participant a right to continue to be an officer or employee of the Company or its subsidiaries or affiliates or in any other way affect the right of the Company or its subsidiaries or affiliates to terminate the officer position or employment of any officer or employee at any time. 

          7.    Effective Date.    The Plan shall be effective as of August 10, 2005, the date on which the Plan was adopted by the Committee and approved by the Board of Directors of the Company (the "Effective Date").   

          8.    Amendments of the Plan.    The Committee may, with the approval of the Board, amend the Plan at any time.  No amendment to the Plan may change any performance goal or Bonus Formula which has been established for a Participant, or affect any Participant's right to receive a Bonus which has been earned as a result of a performance goal or Bonus Formula established for the Participant, before the amendment, unless the Participant consents to the change. 

          9.    Termination of the Plan.    The Plan may be terminated at any time by the Committee, with the approval of the Board.  Termination of the Plan will not, however, affect any performance goal or Bonus Formula which has been established before the Plan is terminated or the right of any Participant to receive payments of a Bonus based on such goal or Bonus Formula. 

          10.    Unfunded Plan.    Participants shall have no right, title, or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative or any other person.  To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company.  All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan.  The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

          11.    Foreign Laws.    The Committee may award a Bonus to Participants who are subject to the tax laws of nations other than the United States, which Bonus may have terms and conditions as determined by the Committee as necessary to comply with applicable foreign laws or avoid unfavorable tax treatment to a Participant.  The Committee may take any action that it deems advisable to obtain approval of such Bonus by the appropriate foreign governmental entity; provided, however, that no such Bonus may be paid pursuant to this Section 11 and no action may be taken which would result in a violation of the Exchange Act, the Code or any other applicable law.

          12.    Governing Law.    This Plan, Bonuses granted hereunder and actions taken in connection herewith shall be governed and construed in accordance with the laws of the State of Florida (regardless of the law that might otherwise govern under applicable Florida principles of conflict of laws).

          13.    Compliance With Code Section 409A.    The Plan is intended to comply with Code Section 409A, to the extent applicable. Notwithstanding any provision of the Plan to the contrary, the Plan shall be interpreted, operated and administered consistent with this intent. In that regard, and notwithstanding any provision of the Plan to the contrary, the Company reserves the right to amend the Plan or any Bonuses granted under the Plan, by action of the Committee, without the consent of any affected Participant, to the extent deemed necessary or appropriate for purposes of maintaining compliance with Code Section 409A and the regulations promulgated thereunder.

           Amended January 30, 2008ex10_1.htm

    
      

    

    EXECUTION
      COPY       

     

    

     

    

     

    

     

    

     

    

     

    $500,000,000

     

    

     

    CONSTRUCTION
      AND TERM LOAN AGREEMENT

     

    Dated
      as
      of February 5, 2008

     

    Among

     

    CITRUS
      CORP.

     

    asBorrower

     

    and

     

    PIPELINE
      FUNDING COMPANY, LLC

     

    asLender

     

    and

     

    PIPELINE
      FUNDING COMPANY, LLC

     

    as
      Administrative Agent

    

    

    

    

     

    
      
              

                  
      
      

                            MIAMI/4210166.14              
    

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    TABLE
      OF CONTENTS

     

    
      
        	 	 	
                Page

              
	
                ARTICLE
                  I

              	
                DEFINITIONS
                  AND ACCOUNTING TERMS

              	
                1

              
	
                Section
                  1.01.

              	
                Certain
                  Defined Terms

              	
                1

              
	
                Section
                  1.02.

              	
                Computation
                  of Time Periods

              	
                15

              
	
                Section
                  1.03.

              	
                Accounting
                  Terms

              	
                15

              
	
                Section
                  1.04.

              	
                Miscellaneous

              	
                15

              
	
                Section
                  1.05.

              	
                Ratings

              	
                15

              
	
                ARTICLE
                  II

              	
                AMOUNT
                  AND TERMS OF THE LOAN

              	
                16

              
	
                Section
                  2.01.

              	
                The
                  Loan

              	
                16

              
	
                Section
                  2.02.

              	
                Making
                  the Construction Loan

              	
                16

              
	
                Section
                  2.03.

              	
                Repayment;
                  Noteless Agreement

              	
                17

              
	
                Section
                  2.04.

              	
                Interest

              	
                18

              
	
                Section
                  2.05.

              	
                Interest
                  Rate Determination

              	
                18

              
	
                Section
                  2.06.

              	
                Default
                  Rate

              	
                18

              
	
                Section
                  2.07.

              	
                Prepayments;
                  Deferrals

              	
                19

              
	
                Section
                  2.08.

              	
                Payments
                  and Computations

              	
                19

              
	
                Section
                  2.09.

              	
                Taxes

              	
                20

              
	
                Section
                  2.10.

              	
                Sharing
                  of Payments, Etc

              	
                22

              
	
                ARTICLE
                  III

              	
                CONDITIONS
                  PRECEDENT

              	
                22

              
	
                Section
                  3.01.

              	
                Conditions
                  Precedent to Closing Date

              	
                22

              
	
                Section
                  3.02.

              	
                Conditions
                  Precedent to Construction Loan

              	
                23

              
	
                Section
                  3.03.

              	
                No
                  Approval of Work

              	
                26

              
	
                ARTICLE
                  IV

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                26

              
	
                Section
                  4.01.

              	
                Representations
                  and Warranties of the Borrower

              	
                26

              
	
                ARTICLE
                  V

              	
                COVENANTS
                  OF THE BORROWER

              	
                31

              
	
                Section
                  5.01.

              	
                Affirmative
                  Covenants

              	
                31

              
	
                Section
                  5.02.

              	
                Negative
                  Covenants

              	
                37

              
	
                Section
                  5.03.

              	
                Disclosure
                  Limitations

              	
                40

              
	
                ARTICLE
                  VI

              	
                EVENTS
                  OF DEFAULT

              	
                41

              
	
                Section
                  6.01.

              	
                Events
                  of Default

              	
                41

              

      

    

     

     

    
      
        
                

                              
                            
      

                              MIAMI/4210166.14              
    

           

        

        
          i

          
            

          

        

        
           

          
            TABLE
              OF CONTENTS

            (continued)

          

        

      

    

     

     

    
      
        	 	 	
                Page 

              
	
                ARTICLE
                  VII

              	
                THE
                  AGENT

              	
                45

              
	
                Section
                  7.01.

              	
                Authorization
                  and Action

              	
                45

              
	
                Section
                  7.02.

              	
                Administrative
                  Agent’s Reliance, Etc

              	
                45

              
	
                Section
                  7.03.

              	
                Administrative
                  Agent and Its Affiliates

              	
                46

              
	
                Section
                  7.04.

              	
                Lender
                  Credit Decision

              	
                46

              
	
                Section
                  7.05.

              	
                Certain
                  Rights of the Administrative Agent

              	
                46

              
	
                Section
                  7.06.

              	
                Holders

              	
                47

              
	
                Section
                  7.07.

              	
                Indemnification

              	
                47

              
	
                Section
                  7.08.

              	
                Resignation
                  or Removal of the Administrative Agent

              	
                47

              
	
                ARTICLE
                  VIII

              	
                MISCELLANEOUS

              	
                49

              
	
                Section
                  8.01.

              	
                Amendments,
                  Etc

              	
                49

              
	
                Section
                  8.02.

              	
                Notices,
                  Etc

              	
                49

              
	
                Section
                  8.03.

              	
                No
                  Waiver; Remedies

              	
                50

              
	
                Section
                  8.04.

              	
                Costs,
                  Expenses and Indemnity

              	
                50

              
	
                Section
                  8.05.

              	
                Right
                  of Set-Off

              	
                51

              
	
                Section
                  8.06.

              	
                Binding
                  Effect; Assignments; Participations

              	
                52

              
	
                Section
                  8.07.

              	
                Governing
                  Law; Entire Agreement

              	
                57

              
	
                Section
                  8.08.

              	
                Interest

              	
                57

              
	
                Section
                  8.09.

              	
                Confidentiality

              	
                58

              
	
                Section
                  8.10.

              	
                Execution
                  in Counterparts

              	
                59

              
	
                Section
                  8.11.

              	
                Survival
                  of Representations, Warranties and Certain Obligations

              	
                60

              
	
                Section
                  8.12.

              	
                Severability

              	
                60

              
	
                Section
                  8.13.

              	
                WAIVER
                  OF JURY TRIAL

              	
                60

              
	
                Section
                  8.14.

              	
                Submission
                  to Jurisdiction

              	
                60

              
	
                Section
                  8.15.

              	
                USA
                  Patriot Act Notice

              	
                61

              

      

    

     

    

    
      
              

                            
                          
      

                  
      
      

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    SCHEDULES
      AND EXHIBITS

    

    Exhibit A                      -       Form
      of Note

    Exhibit B                      -        Form
      of Funding Certificate

    
      	
              Exhibit
                C

            	
              Form
                of Assignment and Acceptance

            

    

    

    SCHEDULE
      1                                           Description
      of Existing Pipeline

    SCHEDULE
      2                                           [INTENTIONALLY
      OMITTED]

    SCHEDULE
      3                                           Material
      Applicable Permit Schedule

    SCHEDULE
      4                                           UCC
      Reports

    SCHEDULE
      5                                           Borrower
      Subsidiaries

    SCHEDULE
      6                                           Third-Party
      Ownership of Existing Pipeline

    SCHEDULE
      7                                           Borrower
      Quarterly Certificate

    SCHEDULE
      8                                           Opinion
      Points

    SCHEDULE
      9                                           Suretyship
      Agreements, Guarantees and other Contingent Liabilities

    SCHEDULE
      10                                         Litigation

    

    

    
      
              

                            
                          
      

                            MIAMI/4210166.14              
    

         

      

      
         

        
          

        

      

      
         

      

    

    CONSTRUCTION
      AND TERM LOAN AGREEMENT

     

    Dated
      as
      of February 5, 2008

     

    This
      CONSTRUCTION AND TERM LOAN AGREEMENT (the “Agreement”) is among CITRUS
      CORP., a Delaware corporation (“Citrus” or the “Borrower”),
      PIPELINE FUNDING COMPANY, LLC, a Delaware limited liability company, and the
      additional lenders party hereto from time to time (collectively, the
“Lenders”), and PIPELINE FUNDING COMPANY, LLC, a Delaware limited
      liability company, as Administrative Agent (as defined below) (the Borrower,
      the
      Lenders and the Agent are sometimes referred as a “Party” and
      collectively as the “Parties”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      the Borrower is the direct parent of Florida Gas Transmission Company, LLC,
      a
      Delaware limited liability company (formerly known as Florida Gas Transmission
      Company, a Delaware corporation) (“FGT”), which in turn owns and operates
      the Existing Pipeline (as more fully described herein); and

     

    WHEREAS,
      FGT intends to develop, construct and operate the Project (as more fully
      described herein) to provide for a critical expansion of the Existing Pipeline;
      and

     

    WHEREAS,
      the agreement of the Lenders to provide the Loan hereunder (as more fully
      described herein) will provide a necessary source of capital to the Borrower
      to
      contribute necessary funds to FGT to finance the development, construction
      and
      operation of the Project and, accordingly, the Borrower has agreed to accept
      the
      funding of the Loan at the time and in the amount contemplated
      herein;

     

    NOW,
      THEREFORE, in consideration of the sum of Ten Dollars ($10) and in consideration
      of the premises and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the Parties hereto agree as
      follows:

     

    ARTICLE
      I

    DEFINITIONS
      AND ACCOUNTING TERMS

     

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

     

    “Administrative
      Agent” means Pipeline Funding Company, LLC, a Delaware limited liability
      company, in its capacity as the administrative agent hereunder, together with
      any assignee or successor thereto pursuant to Section 7.08.

     

    “Affiliate”
      of a specified Person means any other Person that directly, or indirectly
      through one or more intermediaries, controls, is controlled by or is under
      common control with the Person specified, or, additionally in the case of the
      Borrower, who holds or beneficially owns

     

    
      
              

                            
                          
      

                            MIAMI/4210166.14              
    

         

      

      
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    20%
      or
      more of the equity interest in the Borrower or 20% or more of any class of
      voting securities of the Borrower.

     

    “Agreement”
      means this Construction and Term Loan Agreement, as the same may be amended,
      supplemented or modified from time to time.

     

    “Applicable
      Law” shall mean any constitution, statute, law, rule, regulation, ordinance,
      judgment, order, decree or Governmental Rule, or any published directive or
      requirement which has the force of law, or other governmental restriction which
      has the force of law, or any determination by, or interpretation of any of
      the
      foregoing by, any judicial authority, whether in effect as of the Closing Date
      or thereafter and, in each case, as amended.

     

    “Applicable
      Margin” means five and thirty-five one hundredths percent (5.35%) per
      annum.

     

    “Applicable
      Permit” means any Permit, including any zoning, environmental protection,
      pollution (including air, water or noise), sanitation, FERC, PUC, import,
      export, safety, siting or building Permit (a) that is necessary to be obtained
      or maintained by or on behalf of the Borrower or any of its Subsidiaries at
      the
      time the determination is made in light of the stage of development,
      construction or operation of the Existing Pipeline or the Project (to the extent
      required by Legal Requirements or the Facility Agreements) to construct, test,
      operate, maintain, repair, own or use the Existing Pipeline or the Project
      as
      contemplated by the Facility Agreements, to transport gas therein, for the
      Borrower or any of its Subsidiaries to enter into any Facility Agreement or
      to
      consummate any transaction contemplated thereby, in each case in accordance
      with
      all applicable Legal Requirements, or (b) that is necessary to be obtained
      or
      maintained by or on behalf of any Person (other than the Borrower or any of
      its
      Subsidiaries) that is a party to a Facility Agreement in order to perform such
      Person’s obligations under and as contemplated by the Facility Agreements to
      which such Person is a party, or in order to consummate any transaction
      contemplated thereby, in each case in accordance with all applicable Legal
      Requirements.

     

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

     

    “Bankruptcy
      Code” means Title 11 of the United States Code, as now or hereafter in
      effect, or any successor thereto.

     

    “Borrower”
      means Citrus Corp., a Delaware corporation and any permitted successor thereto
      pursuant to Section 5.02(c).

     

    "Borrower
      Credit Agreement" means the $200,000,000 Revolving Credit Agreement dated
      August 16, 2007 among the Borrower, the lenders party thereto from time to
      time,
      and Calyon New York Branch as the administrative agent, as amended,
      supplemented, restated or otherwise modified from time to time.

     

    “Borrower
      Debt Agreements” means the Borrower Credit Agreement and the Borrower Note
      Agreement.

     

    
      
              

                            
                          
      

                  
      
      

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    “Borrower
      Note Agreement” means the Note Agreement dated as of November 2, 1994, among
      the Borrower and the purchasers party thereto from time to time, as amended,
      supplemented, restated or otherwise modified from time to time.

     

    “Borrower
      Quarterly Certificate” means a certificate signed by a Responsible Officer
      of the Borrower, in substantially the form of Schedule 7, which is delivered
      by
      the Borrower to the Administrative Agent on behalf of the Lenders pursuant
      to
      Section 5.01(a)(ii).

     

    “Borrowing”
      means the borrowing hereunder consisting of the Construction Loan made on the
      same day by the Lenders.

     

    “Business
      Day” shall mean any day other than a Saturday, Sunday or any other day on
      which national banks in the State of New York or the State of Florida are closed
      for legal holiday or by government directive.  When used with respect
      to calculating the LIBOR Rate, “Business Day” shall mean a day upon which United
      States dollar deposits may be dealt in on the London and New York City interbank
      markets and commercial banks and foreign exchange markets are open in London
      and
      New York City.

     

    "CERCLA"
      means the Comprehensive Environmental Response, Compensation and Liability
      Act,
      42 U.S.C. § 9601 et seq. and all rules and regulations promulgated
      thereunder.

     

    “Change
      of Control” means any Person or group of Persons (within the meaning of
      Section 13 or 14 of the Securities Exchange Act of 1934, as amended) shall
      have,
      either directly or indirectly, acquired beneficial ownership (within the meaning
      of Rule 13d-3 promulgated by the SEC under said Act) of more than 50% of the
      Voting Securities of the Borrower; provided that, the acquisition by any
      Permitted Holder of the Voting Securities of the Borrower which would have
      the
      effect of such Permitted Holder holding more than 50% of such Voting Securities
      shall not constitute a Change of Control so long as after giving effect to
      such
      event, FGT's senior unsecured long term debt is rated at least BBB- by S&P
      and Baa3 by Moody’s.

     

    “Closing
      Date” means the date that this Agreement has been duly executed and
      delivered by each of the parties hereto and each of the conditions precedent
      set
      forth in Section 3.01 shall have been met or performed (or waived by the
      Lenders) as contemplated therein.

     

    “Code”
      means the Internal Revenue Code of 1986 as amended from time to time, or any
      successor Federal tax code, and any reference to any statutory provision of
      the
      Code shall be deemed to be a reference to any successor provision or
      provisions.

     

    “Commitment”
      has the meaning specified in Section 2.01.

     

    “Consolidated”
      with respect to any Person, refers to the consolidation of the accounts of
      such
      Person and its Subsidiaries in accordance with GAAP.

     

    “Construction
      Contracts” means each agreement that is entered into by the Borrower or any
      of its Subsidiaries with respect to the Project with a Contractor for the
      construction of all or any portion of the Project, or the supply or provision
      by
      or to the Borrower or any of its Subsidiaries of  any goods or
      services relating to the construction of the Project.

     

    
      
              

                            
                          
      

                  
      
      

                            MIAMI/4210166.14              
    

         

      

      
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    “Construction
      Loan” means any extension of credit made by a Lender pursuant to its
      Commitment and in accordance with Section 2.01(a).

     

    “Contractor”
      means each contractor, each project engineer, and any other Person who is
      providing goods or services to the Project pursuant to a Construction
      Contract.

     

    “Debt”
      of any Person means, at any date, without duplication, (a) all obligations
      of
      such Person for borrowed money, (b) all obligations of such Person evidenced
      by
      bonds, debentures, notes or other similar instruments, (c) all obligations
      of
      such Person to pay the deferred purchase price of property or services, except
      trade accounts payable arising in the ordinary course of business, (d) all
      obligations of such Person under leases which are or should be, in accordance
      with GAAP, recorded as capital leases in respect of which such Person is liable,
      (e) all obligations of such Person to purchase securities (or other property)
      which arise out of or in connection with the sale of the same or substantially
      similar securities (or property), (f) all deferred obligations of such Person
      to
      reimburse any bank or other Person for amounts paid or advanced under a letter
      of credit or other instrument, (g) all Debt of others secured by a Lien on
      any
      asset of such Person, whether or not such Debt is assumed by such Person, and
      (h) all Debt (or other obligations) of others guaranteed directly or indirectly
      by such Person or as to which such Person has an obligation substantially the
      economic equivalent of a guarantee.

     

    “Default”
      means any Event of Default or any event which, after notice or lapse of time
      or
      both, would constitute an Event of Default.

     

    “Default
      Rate” means, as of the date of any determination thereof, the rate of
      interest then applicable to the Loan plus two percent (2%) per
      annum.

     

    “Distributable
      Amounts” means (a) all cash and cash equivalents (as defined in accordance
      with GAAP) of the Borrower on hand at the date of determination of Distributable
      Amounts, less (b) the amount of any cash reserves that is necessary or
      appropriate in the reasonable discretion of the Borrower to (i) provide for
      the
      proper and prudent conduct of the business of the Borrower and its Subsidiaries
      (including reserves for future capital expenditures and for anticipated future
      credit needs of the Borrower and its Subsidiaries) subsequent to such
      determination, (ii) comply with the financial and other covenants under the
      Loan
      Documents, or (iii) comply with Applicable Law or any loan agreement, security
      agreement, mortgage, debt instrument or other agreement or obligation to which
      the Borrower or any of its Subsidiaries is a party or by which it or any of
      its
      Subsidiaries is bound or its or their assets are subject.

     

    “Dollars”
      and “$” mean United States dollars of such coin or currency of the United
      States of America as at the time of payment shall be legal tender for the
      payment of public and private debts in the United States of
      America.

     

     “Easements”
      means the easements appurtenant, easements in gross, license agreements and
      other rights running in favor of the Borrower or any of its Subsidiaries and/or
      appurtenant to any Site relating to the Project and the Existing
      Pipeline.

     

    “EBITDA”
      means, without duplication, for the Borrower, for any period, the sum of
      (i) the Borrower’s and its Subsidiaries' Consolidated Net Income for such
      period plus (ii) to the extent deducted in determining such
      Consolidated Net Income, the Borrower’s and its

     

    
      
              

                            
                          
      

                  
      
      

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    Subsidiaries'
      Consolidated Interest Expense, income taxes, depreciation, amortization and
      other non-cash charges for such period.

     

    “Eligible
      Assignee” means, in respect of any assignment, transfer or pledge by any
      Lender to any Person pursuant to, or financing of any Lender’s investment in any
      portion of the Loan hereunder as contemplated by, Section 8.06, (a) any
      Affiliate of Pipeline Funding Company, LLC, (b) any commercial bank or other
      financial institution that is regulated under the laws of any country that
      is a
      member of the Organization of Economic Cooperation and Development and having
      a
      combined capital and surplus of at least $500,000,000, (c) any “accredited
      investor” within the meaning of Rule 501(a)(1), (2) or (3) under the Securities
      Act of 1933, as amended (the “Securities Act”), or an entity in which all of the
      equity owners are accredited investors within the meaning of Rule 501(a)(1),
      (2)
      or (3) under the Securities Act; (d) any Person that is a “qualified
      institutional buyer” (as defined in Rule 144A under the Securities Act), or (e)
      any Person in a transaction in accordance with Rule 904 under the Securities
      Act; provided, however, that neither the Borrower nor any Subsidiary of the
      Borrower shall be an Eligible Assignee, and (f) in the cases described in
      clauses (b) through (e), inclusive, after giving effect to any such assignment,
      transfer, pledge or financing, such assignee, transferee, pledgee or lender
      shall hold at least $5,000,000 of principal amount of the Loan outstanding
      or
      the Commitments or such assignee, transferee, pledgee or lender shall hold
      at
      least $5,000,000 of principal amount of any indebtedness or other investment
      made to finance all or any portion of any Lender’s investment in the
      Loan.

     

    “Environmental
      Law” shall mean (a) CERCLA, (b) RCRA; (c) the Federal Water Pollution
      Control Act, 33 U.S.C. § 1251 et seq.; (d) the Clean Air Act, 42 U.S.C.
§ 7401 et seq.; (e) the Hazardous Materials Transportation Act, 49 U.S.C.
§ 1471 et seq.; (f) the Toxic Substances Control Act, 15 U.S.C.
§§ 2601 through 2629; (g) the Oil Pollution Act, 33 U.S.C. § 2701 et
      seq.; (h) the Emergency Planning and Community Right-to-Know Act, 42 U.S.C.
      § 11001 et seq.; (i) the Safe Drinking Water Act, 42 U.S.C. §§ 300f
      through 300j; (j) the Occupational Safety and Health Act, 29 U.S.C. § 651 et.
      seq.; (k) any and all rules and regulations promulgated under any of the
      foregoing, and (l) any final, non-appealable orders applicable to the Borrower
      or its Subsidiaries or any other federal, state or local statutes, laws, rules,
      regulations, ordinances, permits, codes, and addressing pollution or protection
      of the environment, natural resources or human health (including, without
      limitation, those statutes, laws, rules, regulations, ordinances, permits,
       and codes regulating the disposal, removal, storing, treatment or
      transporting of Hazardous Materials).

     

    “Environmental
      Reports” means any reports prepared by or for (or provided to) the Borrower
      or any of its Subsidiaries regarding environmental contamination conditions
      at
      any Site, whether with respect to the Project or the Existing Pipeline and
      relating to such contamination that the Borrower reasonably expects to result
      in
      liability or exposure to the Borrower or any of its Subsidiaries in excess
      of
      $5,000,000 per Site.

     

    “Equity
      Contribution” means a cash equity contribution.

     

    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended from
      time
      to time, and any successor statute of similar import, together with the
      regulations thereunder, as in effect from time to time.

     

    
      
              

                            
                          
      

                  
      
      

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    “ERISA
      Affiliate” means any trade or business (whether or not incorporated) which
      is a member of a group of which the Borrower is a member and which is under
      common control within the meaning of the regulations under Section 414 of
      the Code.

     

    “Event
      of Eminent Domain” means any compulsory transfer or taking by condemnation,
      eminent domain or exercise of a similar power, or transfer under threat of
      such
      compulsory transfer or taking, of any part of the Existing Pipeline or the
      Project, by any agency, department, authority, commission, board,
      instrumentality or political subdivision of any state, the United States or
      another Governmental Authority having jurisdiction.

     

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

     

    “Existing
      Pipeline” means the natural gas pipeline owned by FGT that spans over parts
      of Texas, Louisiana, Alabama, Mississippi and Florida and has a capacity of
      approximately 2.1 billion cubic feet per day, as more fully described in
      Schedule 1, and any additional natural gas pipeline (other than the Project)
      owned by FGT on or after the date of this Agreement.

     

    “Facility
      Agreement” means any contract or agreement related to the construction,
      testing, maintenance, repair, operation, ownership, real property rights or
      use
      of the Existing Pipeline or the Project entered into by the Borrower or any
      of
      its Subsidiaries and any other Person, or assigned to the Borrower or any of
      its
      Subsidiaries.

     

    “FDIC”
      means the Federal Deposit Insurance Corporation and its successors.

     

    “Federal
      Reserve Board” means the Board of Governors of the Federal Reserve System,
      or any federal agency or authority of the United States from time to time
      succeeding to its function.

     

    “FERC”
      means the Federal Energy Regulatory Commission, or any federal agency or
      authority of the United States from time to time succeeding to its
      function.

     

    “FERC
      Certificate” means an order of the FERC granting a certificate of public
      convenience and necessity related to the Project.

     

    "FGT"
      means Florida Gas Transmission Company, LLC, a Delaware limited liability
      company (formerly known as Florida Gas Transmission Company, a Delaware
      corporation).

     

    "FGT
      Credit Agreement" means the $300,000,000 Revolving Credit Agreement dated
      August 16, 2007 among FGT, the lenders party thereto from time to time, and
      Calyon New York Branch as the administrative agent, as amended, supplemented,
      restated or otherwise modified from time to time.

     

    "FGT
      Debt Agreements" means the FGT Credit Agreement, the FGT Indenture and the
      FGT Note Agreements.

     

    "FGT
      Indenture" means the Indenture dated as of November 7, 1994, from FGT to
      Chemical Bank, as trustee, as supplemented by the First Supplemental Indenture,
      dated as of

     

    
      
              

                            
                          
      

                  
      
      

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    July 17,
      2002, to Wachovia Bank, N.A., as successor trustee, as the same may be further
      amended, supplemented, restated or otherwise modified from time to
      time.

     

    "FGT
      Note Agreements" means the Note Purchase Agreement dated as of April 4,
      1991, from FGT to the Purchasers parties thereto, as amended by the Amendment
      to
      Note Purchase Agreement, dated as of October 7, 1993, the Note Purchase
      Agreement, dated as of October 31, 1994, the Note Purchase Agreement, dated
      November 30, 2000, and the Note Purchase Agreement, dated July 12, 2002, as
      the
      same may be further amended, supplemented, restated or otherwise modified from
      time to time.

     

    “Final
      Maturity Date” means the earlier of (a) December 31, 2033, and (b) the date
      that is twenty (20) years after the date the Loan is converted to a Term Loan
      as
      contemplated in Section 2.01(b).

     

    “Fiscal
      Quarter” means a fiscal quarter of a Fiscal Year.

     

    “Fiscal
      Year” means any period of twelve consecutive calendar months ending on
      December 31.

     

    “Funding
      Certificate” has the meaning specified in
      Section 3.02(a)(iii).

     

    “Funding
      Date” means the date of funding of the Construction Loan.

     

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

     

    “Governmental
      Authority” means any national, state or local government (whether domestic
      or foreign), any political subdivision thereof or any other governmental,
      quasi-governmental, judicial, public or statutory instrumentality, authority,
      body, agency, bureau or entity (including any zoning authority, FERC, the PUC,
      the FDIC, the Comptroller of the Currency or the Federal Reserve Board, any
      central bank or any comparable authority) or any arbitrator with authority
      to
      bind a party at law.

     

    “Governmental
      Rule” means any law, statute, rule, regulation, ordinance, order, code
      interpretation, treaty, judgment, decree, directive, guidelines, policy or
      similar form of decision of any Governmental Authority.

     

    "Hazardous
      Materials” shall mean any substance which is regulated under any
      Environmental Law or which, pursuant to any Environmental Laws, requires special
      handling in its collection, use, storage, treatment or disposal, including
      but
      not limited to any of the following: (a) any “hazardous waste” as defined by
      RCRA; (b) any “hazardous substance” as defined by CERCLA; (c) asbestos; (d)
      polychlorinated biphenyls; (e) any explosives or radioactive materials; and
      (f)
      any substance, the presence of which on any of the Borrower’s properties is
      prohibited by any Environmental Law.

     

    “Indebtedness”
      of any Person means, at any date, without duplication, (a) all Debt of such
      Person, and (b) all obligations of such Person in respect of repurchase
      agreements, interest rate swaps, collars or caps and other interest rate
      protection arrangements, foreign currency

     

    
      
              

                            
                          
      

                  
      
      

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    exchange
      agreements, commodity exchange, commodity future, commodity option agreements,
      or other interest or exchange rate or commodity hedging
      arrangements.

     

    “Indemnified
      Parties” has the meaning specified in Section 8.04(b).

     

    “Insufficiency”
      means, with respect to any Plan, the amount, if any, by which the present value
      of the accrued benefits under such Plan exceeds the fair market value of the
      assets of such Plan allocable to such benefits.

     

    "Interest
      Expense" means, for any period and with respect to any Person, total
      interest expense, letter of credit fees and other fees and expenses incurred
      by
      such Person in connection with any Debt for such period, whether paid or accrued
      (including that attributable to obligations which have been or should be, in
      accordance with GAAP, recorded as capital leases), including all fees and
      charges owed with respect to the Obligations.

     

    “Interest
      Payment Date” means, in respect of the Construction Loan, the last day of
      each January, April, July and October, commencing with the first such day to
      occur after the Funding Date, and continuing on each such successive date until
      the date the Construction Loan is converted to a Term Loan in accordance with
      Section 2.01(b), and on the date the Construction Loan is converted to a Term
      Loan in accordance with Section 2.01(b).

     

    “Investments”
      means any loans, advances, or capital contributions to, or any investment in,
      or
      purchase or commitment to purchase, any stock, equity interest or other
      securities or evidences of indebtedness of or interests in any Person or any
      Property.

     

    “Legal
      Requirements” means, as to any Person, the articles of incorporation, bylaws
      or other organizational or governing documents of such Person, and any
      requirement under a Permit, Applicable Law and/or any Governmental Rule in
      each
      case applicable to or binding upon such Person or any of its properties or
      to
      which such Person or any of its property is subject.

     

    “Lenders”
      has the meaning specified in the first paragraph of this Agreement, and shall
      include any financial institution which becomes a Lender in accordance with
      the
      terms and provisions of Section 8.06.

     

    “LIBOR
      Rate” means, as of the date of any determination thereof, the rate per annum
      equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published
      by Reuters (or other commercially available source providing quotations of
      BBA
      LIBOR as designated by the Administrative Agent from time to time), for Dollar
      deposits with a term equivalent to three (3) months. The LIBOR Rate shall be
      determined by the Administrative Agent two (2) Business Days prior to the
      Funding Date for the Construction Loan and thereafter determined and adjusted
      by
      the Administrative Agent on a quarterly basis two (2) Business Days prior to
      each Interest Payment Date occurring during the period in which such
      Construction Loan bears interest on the basis of the LIBOR Rate for the three
      (3) month period commencing on the Interest Payment Date for which such
      determination is being made, commencing on the first such date to occur
      following the Funding Date for the Construction Loan.  Each
      determination by the Administrative Agent pursuant to this definition shall
      be
      conclusive absent demonstrable error.

     

    
      
              

                            
                          
      

                  
      
      

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    “Lien”
      means any mortgage, lien, pledge, assignment, charge, deed of trust, security
      interest or encumbrance (or other type of arrangement having the practical
      effect of the foregoing) to secure or provide for the payment of any obligation
      of any Person, whether arising by contract, operation of law, or otherwise
      (including, without limitation, the interest of a vendor or lessor under any
      conditional sale agreement, synthetic lease, capital lease, or other title
      retention agreement).

     

    “Loan”
      means a loan by a Lender to the Borrower pursuant to Article II.

     

    “Loan
      Document” means this Agreement, each Note, the Negative Pledge, the Funding
      Certificate, each Borrower Quarterly Certificate, and any other loan or security
      agreement or similar document entered into by the Borrower or one or more other
      Affiliates of the Borrower in connection with the transactions contemplated
      by
      the Loan Documents.

     

    “Majority
      Lenders” means at any time Lenders, other than defaulting Lenders, holding
      at least 51% of the then aggregate principal amount of the Loan outstanding
      at
      such time, or if no principal amount is then outstanding, the Lenders, other
      than defaulting Lenders, having at least 51% of the Commitments.

     

    “Material
      Adverse Change” shall mean (a) any material adverse change (individually or
      in the aggregate) in the business, assets, liabilities, operations, or financial
      condition of the Borrower and its Subsidiaries, taken as a whole, (b) any
      material adverse change (individually or in the aggregate) in the ability of
      the
      Borrower and its Subsidiaries, taken as a whole, to timely perform its payment
      obligations or any of its other material obligations under the Loan Documents,
      (c) any material adverse change (individually or in the aggregate) that is
      reasonably likely to affect the ability of the Borrower and FGT to construct
      or
      complete the Project, or (d) any material adverse change (individually or in
      the
      aggregate) in the rights and remedies of the Administrative Agent or the Lenders
      under any of the Loan Documents.

     

    “Material
      Applicable Permit” means (a) any Applicable Permit that is identified as a
      Material Applicable Permit in the Permit Schedule, and (b) any other Applicable
      Permit that, if not obtained, would reasonably likely be expected to result
      in a
      Material Adverse Change.

     

    “Material
      Facility Agreements” means (a) any Construction Contract that provides for
      the payment by or to the Borrower or any of its Subsidiaries of $35,000,000
      or
      more, or the provision or supply by or to the Borrower or any of its
      Subsidiaries of $35,000,000 or more in value of goods or services, (b) any
      Shipper Contract that, when aggregated with all other Shipper Contracts of
      the
      same customer, represents five percent (5%) or more of the aggregate revenues
      of
      the Borrower and its Subsidiaries, taken as a whole, for the four (4) Fiscal
      Quarters most recently ended prior to the date of such determination or
      represents five percent (5%) or more of the aggregate contracted volume of
      the
      Borrower and its Subsidiaries, taken as a whole, for the four (4) Fiscal
      Quarters most recently ended prior to the date of such determination, (c) any
      other Facility Agreement that provides for the payment by or to the Borrower
      or
      any of its Subsidiaries of $35,000,000 or more, or the provision or supply
      by or
      to the Borrower or any of its Subsidiaries of $35,000,000 or more in value
      of
      goods or services, and (d) any contract or agreement entered into by the
      Borrower or any of its Subsidiaries with respect to Indebtedness in excess
      of
      $30,000,000.

     

    
      
              

                            
                          
      

                  
      
      

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    "Material
      Facility Parties" means, with respect to the Existing Pipeline and/or the
      Project, any Person party to a Material Facility Agreement (other than the
      Borrower or any of its Subsidiaries) and each guarantor that executes a guaranty
      agreement in favor of the Borrower or any of its Subsidiaries providing credit
      support in relation to any party’s (other than the Borrower’s or any of its
      Subsidiaries’) obligations under a Material Facility Agreement.

     

    “Moody’s”
      means Moody’s Investors Service, Inc.

     

    “Multiemployer
      Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
      ERISA to which the Borrower or any ERISA Affiliate is making or accruing an
      obligation to make contributions, or has within any of the preceding five (5)
      plan years made or accrued an obligation to make contributions.

     

    “Multiple
      Employer Plan” means an employee benefit plan, other than a Multiemployer
      Plan, subject to Title IV of ERISA to which the Borrower or any ERISA Affiliate,
      and more than one employer other than the Borrower or an ERISA Affiliate, is
      making or accruing an obligation to make contributions or, in the event that
      any
      such plan has been terminated, to which the Borrower or any ERISA Affiliate
      made
      or accrued an obligation to make contributions during any of the five (5) plan
      years preceding the date of termination of such plan.

     

    "Negative
      Pledge" means the Negative Pledge Agreement, of even date herewith, between
      FGT and the Administrative Agent, as the same may be amended, supplemented,
      and
      otherwise modified from time to time.

     

    "Net
      Income" means, for any period and with respect to any Person, the net income
      for such period for such Person after taxes as determined in accordance with
      GAAP, excluding, however, (a) extraordinary items, including (i) any
      net non-cash gain or loss during such period arising from the sale, exchange,
      retirement or other disposition of capital assets (such term to include all
      fixed assets and all securities) other than in the ordinary course of business,
      and (ii) any write-up or write-down of assets and (b) the cumulative
      effect of any change in GAAP.

     

    “Note”
      means a promissory note of the Borrower payable to the order of any Lender,
      in
      substantially the form of Exhibit A, evidencing the aggregate indebtedness
      of the Borrower to such Lender resulting from the Loan owed to such
      Lender.

     

    “Obligations”
      means all principal, interest, reimbursements, indemnifications, and other
      amounts payable by (i) the Borrower to the Administrative Agent or the Lenders
      under any of the Loan Documents or (ii) FGT to the Administrative Agent or
      the
      Lenders under the Negative Pledge.

     

    “Other
      Taxes” has the meaning specified in Section 2.09(c).

     

    “Payment
      Office” means the office of the Administrative Agent located at 4005 Kennett
      Pike - Suite 220, Greenville, Delaware 19807, or such other office or account
      as
      the Administrative Agent may designate by written notice to the other parties
      hereto.

     

    “PBGC”
      means the Pension Benefit Guaranty Corporation, or any federal agency or
      authority of the United States from time to time succeeding to its
      function.

     

    
      
              

                            
                          
      

                  
      
      

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    “Permit”
      means an action, approval, consent, waiver, exemption, variance, franchise,
      order, permit, authorization, right or license of or from a Governmental
      Authority.

     

    “Permit
      Schedule” means the Material Applicable Permit Schedule attached as
      Schedule 3, as the same may be amended, supplemented, and otherwise
      modified from time to time in accordance with the provisions
      hereof.

     

    “Permitted
      Holder” means Southern Union Company, El Paso Corporation, or any of their
      respective Subsidiaries.

     

    “Permitted
      Investments” shall mean for any Person (a) cash, (b) investments for the
      account of such Person in direct obligations of the United States of America
      or
      any agency thereof maturing within 180 days from the date of any acquisition
      thereof, (c) investments for the account of such Person in certificates of
      deposit or time deposits of maturities less than one year and issued by
      commercial banks in the United States having capital and surplus in excess
      of
      $500,000,000, (d) investments for the account of such Person in commercial
      paper
      of maturities less than one year rated at least A1 or P1 by S&P or Moody’s,
      respectively, or any equivalent rating from any other rating agency satisfactory
      to the Administrative Agent, and (e) investments in securities purchased by
      such
      Person under repurchase obligations pursuant to which arrangements are made
      with
      selling financial institutions (being a financial institution with a rating
      of
      at least A1 or P1 by S&P or Moody’s, respectively, and with capital and
      surplus in excess of $500,000,000) for such financial institutions to repurchase
      such securities within 30 days from the date of purchase by such
      Person.

     

    “Permitted
      Liens” has the meaning given in Section 5.02(e).

     

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

     

    “Plan”
      means an employee benefit plan (other than a Multiemployer Plan) which is (or,
      in the event that any such plan has been terminated within five (5) years after
      a transaction described in Section 4069 of ERISA, was) maintained for
      employees of the Borrower or any ERISA Affiliate and covered by Title IV of
      ERISA.

     

    “Prescribed
      Forms” shall mean such duly executed form(s) or statement(s), and in such
      number of copies, which may, from time to time, be prescribed by Applicable
      Law
      and which, pursuant to applicable provisions of (a) an income tax treaty
      between the United States and the country of residence of the Lender providing
      the form(s) or statement(s), (b) the Code, or (c) any applicable rule
      or regulation under the Code, permit the Borrower to make payments hereunder
      for
      the account of such Lender free of deduction or withholding of income or similar
      taxes (except for any deduction or withholding of income or similar taxes as
      a
      result of any change in or in the interpretation of any such treaty, the Code
      or
      any such rule or regulation).

     

    “Project”
      means the Phase VIII expansion of the Existing Pipeline through the addition
      of
      new pipeline and compression, which, as of the date of this Agreement, is
      contemplated to add up to approximately 800 million cubic feet (or more) of
      capacity per day to the Existing Pipeline.

     

    
      
              

                            
                          
      

                  
      
      

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    “Project
      Budget” has the meaning given in Section 3.01(a)(vii).

     

    “Project
      Completion” means the occurrence of the Project Completion
      Date.

     

    “Project
      Completion Date” means the in-service date of the Project.

     

    “Project
      Costs” means, with respect to the Project, the Borrower or any of its
      Subsidiaries, all of the costs of the development, design, engineering,
      acquisition, equipping, construction, assembly, inspection, testing, completion,
      and start-up of, and amounts required as initial working capital for, the
      Project (including reimbursement for amounts spent in respect of such costs
      and
      reasonable contingencies), including but not limited to: (a) all amounts payable
      under the Construction Contracts, any contractor bonuses, site acquisition
      and
      preparation costs; (b) financing, advisory, legal and other fees (including
      but
      not limited to upfront fees and commitment fees); (c) all other costs, including
      startup and testing costs and cost of spare parts, costs that may be reimbursed
      by construction contractors pursuant to warranty or other claims, costs of
      mobilization of operational personnel, management services fees and expenses,
      insurance expenses not relating to the operation of the Project (including
      premiums therefor), pre-commercial operation fees and expenses under any
      operation, costs to acquire line pack gas, maintenance or administration
      agreements, and expenses to complete the development, acquisition, construction,
      testing and financing of the Project; (d) interest and fees payable or in
      respect of any Note or Commitments pursuant to this Agreement or any other
      Loan
      Document prior to Project Completion of the Project; and (e) the initial working
      capital for the Project as included in the Project Budget.

     

    “Project
      Schedule” has the meaning given in Section 3.01(a)(viii).

     

    “Projections”
      has the meaning given in Section 3.02(a)(vii).

     

    “Property”
      of any Person means any property or assets (whether real, personal, or mixed,
      tangible or intangible) of such Person.

     

    “Prudent
      Natural Gas Pipeline Practices” means, at a particular time, (a) any of the
      practices, methods and acts engaged in or approved by a significant portion
      of
      the competitive natural gas pipeline industry operating in the United States
      at
      such time, or (b) with respect to any matter to which clause (a) does not apply,
      any of the practices, methods and acts which, in the exercise of reasonable
      judgment at the time the decision was made, could have been expected to
      accomplish the desired results at a reasonable cost consistent with good
      business practices, reliability, safety and expedition.  “Prudent
      Natural Gas Pipeline Practices” is not intended to be limited to the optimum
      practice, method or act to the exclusion of all others, but rather to be a
      spectrum of possible practices, methods or acts having due regard for, among
      other things, manufacturer’s warranties and requirements of Applicable
      Law.

     

    “PUC”
      means, with respect to the Existing Pipeline or the Project, the Public Utility
      Commission, Public Service Commission or equivalent Governmental Authority
      in
      the state or states in which the Existing Pipeline or the Project, as
      applicable, is located.

     

    “PUHCA”
      means the Public Utility Holding Company Act of 2005 and all rules and
      regulations adopted thereunder.

     

    
      
              

                            
                          
      

                  
      
      

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    “RCRA”
      means the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.
      and all rules and regulations promulgated thereunder.

     

    “Register”
      has the meaning specified in Section 8.06(d).

     

    “Repayment
      Amount” means, (a) in respect of each Repayment Date occurring prior to the
      date that is five and one-half (51⁄2) years following the date the Construction
      Loan is converted to a Term Loan in accordance with Section 2.01(b), an amount
      of interest calculated by the Administrative Agent as of such date on the basis
      of the Treasury Rate determined by the Administrative Agent as of the date
      the
      Construction Loan is converted to a Term Loan in accordance with Section 2.01(b)
      plus the Applicable Margin, that accrued on the outstanding principal balance
      of
      the Loan during the period from the date the Construction Loan is converted
      to a
      Term Loan or the prior Repayment Date, as applicable, to the Repayment Date
      for
      which such determination is being made, (b) in respect of each Repayment Date
      (other than the Final Maturity Date) occurring on or after the date that is
      five
      and one-half (51⁄2) years following the date the Construction Loan is converted to
      a Term Loan in accordance with Section 2.01(b), an amount of principal and
      interest calculated by the Administrative Agent on the basis of the Treasury
      Rate determined by the Administrative Agent as of as of the date the
      Construction Loan is converted to a Term Loan in accordance with Section 2.01(b)
      plus the Applicable Margin, to provide for equal semiannual payments of
      principal and interest on each such Repayment Date (other than the Final
      Maturity Date) in an amount sufficient to result in the principal balance of
      the
      Loan remaining outstanding on the Final Maturity Date to total $300,000,000,
      and
      (c) in respect of the Final Maturity Date, the amount equal to the aggregate
      principal balance of the Loan outstanding, together with all accrued and unpaid
      interest thereon and all other sums due and owing by the Borrower hereunder
      and
      under the other Loan Documents and by FGT under the Negative
      Pledge.  The Administrative Agent’s determination of the Repayment
      Amount for each Repayment Date shall, absent manifest error, be binding and
      conclusive.

     

    “Repayment
      Date” means (a) the date that is six (6) months following the date the
      Construction Loan is converted to a Term Loan in accordance with Section
      2.01(b), and the same day of each sixth (6th) month
      thereafter
      (or, if there is no numerically corresponding day in said sixth (6th) month,
      the last
      day of such sixth (6th) month),
      and (b)
      the Final Maturity Date.

     

    “Responsible
      Officer” means, as to any Person, its president, chief executive officer,
      any vice president, treasurer, assistant treasurer, controller, assistant
      controller, secretary or assistant secretary or any managing general partner
      or
      managing member (or any of the preceding with regard to such managing general
      partner or managing member).

     

    “SEC”
      means the Securities and Exchange Commission and its successors.

     

    “Shipper
      Contract” means any customer agreement entered into by the Borrower or any
      of its Subsidiaries for the transportation of gas on any part of the Existing
      Pipeline and/or the Project.

     

    “Site”
      means, for the Project and the Existing Pipeline, the land, improvements,
      fixtures and other real property upon which the Project or the Existing Pipeline
      is located or comprised.

     

    
      
              

                            
                          
      

                  
      
      

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    “Standard
      & Poor’s” and “S&P” each means Standard & Poor’s Ratings
      Group, a division of McGraw-Hill, Inc. on the date hereof.

     

    “Subsidiary”
      of any Person means, at the time any determination thereof is to be made, any
      corporation, partnership, limited liability company, joint venture or other
      entity of which more than 50% of the outstanding capital stock or other equity
      interests having ordinary voting power (irrespective of whether or not at the
      time capital stock or other equity interest of any other class or classes of
      such corporation, partnership, limited liability company, joint venture or
      other
      entity shall or might have voting power upon the occurrence of any contingency)
      is at the time directly or indirectly owned by such Person.  Unless
      otherwise indicated or the context otherwise requires, “Subsidiary” means a
      Subsidiary of the Borrower and includes FGT.

     

    “Taxes”
      has the meaning specified in Section 2.09(a).

     

    “Termination
      Date” means the earlier of (a) December 31, 2013, (b) the Project Completion
      Date, and (c) the date of termination in whole of the Commitments pursuant
      to
      Section 6.01.

     

    “Termination
      Event” means (a) a “reportable event”, as such term is described in
      Section 4043 of ERISA (other than a “reportable event” not subject to the
      provision for 30-day notice to the PBGC), or an event described in
      Section 4062(e) of ERISA, or (b) the withdrawal of the Borrower or any
      ERISA Affiliate from a Multiple Employer Plan during a plan year in which it
      was
      a “substantial employer”, as such term is defined in Section 4001(a)(2) of
      ERISA, or the incurrence of liability by the Borrower or any ERISA Affiliate
      under Section 4064 of ERISA upon the termination of a Multiple Employer
      Plan, or (c) the distribution of a notice of intent to terminate a Plan
      pursuant to Section 4041(a)(2) of ERISA or the treatment of a Plan
      amendment as a termination under Section 4041 of ERISA, or (d) the
      institution of proceedings to terminate a Plan by the PBGC under
      Section 4042 of ERISA, or (e) any other event or condition which might
      constitute grounds under Section 4042 of ERISA for the termination of, or
      the appointment of a trustee to administer, any Plan.

     

    “Term
      Loan” means the Construction Loan converted to a Term Loan in accordance
      with the provisions of Section 2.01(b).

     

    “Total
      Capitalization” of any Person means the sum of (a) the principal amount
      of Consolidated Debt at the time outstanding and (b) the total capital
      represented by the capital stock of such Person at such time outstanding based,
      in the case of stock having a par value, upon its par value, and, in the case
      of
      stock of no par value, upon the value stated on the books of such Person, plus
      the total amount of paid-in capital surplus and earned surplus of such Person,
      or less the amount of any net deficit in the surplus account of such Person
      and
      plus the amount of any premium on capital stock of such Person not included
      in
      surplus and less the amount, if any, by which capital surplus has at any time
      been increased as a result of a restatement of the amount at which any assets
      of
      such Person are recorded on the books of such Person.

     

    “Treasury
      Rate” means, as of the date the Loan is converted to a Term Loan, the rate
      per annum equal to the yield reported as of such date, as published on the
      Bloomberg Financial Markets Service (or other commercially available source
      providing quotations of U.S. Treasury

     

    
      
              

                            
                          
      

                  
      
      

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    rates
      as
      designated by the Administrative Agent from time to time), for actively traded
      U.S. Treasury securities having a maturity equal (or, if not available,
      approximately equal) to the period from the date the Loan is converted to a
      Term
      Loan to the Final Maturity Date.  The determination by the
      Administrative Agent pursuant to this definition shall be conclusive absent
      demonstrable error.

     

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

     

    “Withdrawal
      Liability” has the meaning given such term under Part I of
      Subtitle E of Title IV of ERISA.

     

    SECTION
      1.02.  Computation of Time Periods.  In this
      Agreement in the computation of periods of time from a specified date to a
      later
      specified date, the word “from” means “from and including” and the words “to”
and “until” each means “to but excluding”.  Unless otherwise
      indicated, all references to a particular time are references to New York City
      time.

     

    SECTION
      1.03.  Accounting Terms.  All accounting
      terms not specifically defined herein shall be construed in accordance with,
      and
      certificates of compliance with financial covenants shall be based on,
      GAAP.  

     

    SECTION
      1.04.  Miscellaneous.  The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement
      shall refer to this Agreement as a whole and not to any particular provision
      of
      this Agreement, and Article, Section, Schedule and Exhibit references are to
      Articles and Sections of and Schedules and Exhibits to this Agreement, unless
      otherwise specified.  The term “including” means “including, without
      limitation,”.

     

    SECTION
      1.05.  Ratings.  A rating, whether public or
      private, by Standard & Poor’s or Moody’s shall be deemed to be in effect on
      the date of announcement or publication by Standard & Poor’s or Moody’s, as
      the case may be, of such rating or, in the absence of such announcement or
      publication, on the effective date of such rating and will remain in effect
      until the date when any change in such rating is deemed to be in
      effect.  In the event any of the rating categories used by Moody’s or
      Standard & Poor’s is revised or designated differently (such as by changing
      letter designations to different letter designations or to numerical
      designations), then the references herein to such rating shall be changed to
      the
      revised or redesignated rating for which the standards are closest to, but
      not
      lower than, the standards at the date hereof for the rating which has been
      revised or redesignated.  In the event either of Moody’s or Standard
& Poor’s ceases to provide ratings in respect of the obligations for which
      determination of such rating is being made, then the references herein to such
      rating shall be changed to the equivalent rating from any other rating agency
      satisfactory to the Administrative Agent.  Long-term debt supported by
      a letter of credit, guaranty, insurance or other similar credit enhancement
      mechanism shall not be considered as senior unsecured long-term
      debt.

     

    
      
              

                            
                          
      

                  
      
      

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    ARTICLE
      II

    AMOUNT
      AND TERMS OF THE LOAN

     

    SECTION
      2.01.  The Loan.

     

    (a)           Construction
      Loan Availability.  Each Lender severally agrees, on the terms and
      conditions hereinafter set forth, to make a Construction Loan to the Borrower
      on
      any Business Day (which shall be within fifteen (15) days following the (i)
      the
      issuance of the FERC Certificate (which may be subject to conditions) approving
      the Project, and (ii) the earlier of (A) the date FGT shall have commenced
      construction of any part of the Project and (B) acceptance by FGT of the FERC
      Certificate) during the period from the date hereof until the Termination Date
      so long as the aggregate outstanding principal amount of the Construction Loan
      owing to such Lender does not exceed the amount set opposite such Lender’s name
      on the signature pages hereof or if such Lender has entered into any Assignment
      and Acceptance, then as set forth for such Lender in the Register maintained
      by
      the Administrative Agent pursuant to Section 8.06(d) (such Lender’s
“Commitment”).  Monies borrowed under this Section 2.01,
      once repaid, may not be reborrowed.

     

    (b)           Conversion
      to Term Loan.  Subject to the terms and conditions of this
      Agreement, each Lender agrees that on the Project Completion Date, if not sooner
      converted to a Term Loan as hereinafter provided, the aggregate principal amount
      of the Construction Loan totaling Five Hundred Million and No/100’s Dollars
      ($500,000,000.00), shall automatically be converted to a Term
      Loan.  Notwithstanding the foregoing provision to the contrary, the
      Administrative Agent, at the direction of the Majority Lenders, may, at any
      time
      on or after the Funding Date, elect to convert the outstanding Construction
      Loan
      to a Term Loan bearing interest at the Treasury Rate plus the Applicable Margin
      as provided in Section 2.04(b), such conversion to be effective no sooner than
      fourteen (14) days following notice thereof from the Administrative Agent to
      the
      Borrower.

     

    SECTION
      2.02.  Making the Construction Loan.

     

    (a)           The
      Borrower shall deliver a Funding Certificate to the Administrative Agent,
      together with all supporting detail contemplated to be delivered therewith,
      at
      least seven (7) days prior to the Funding Date (which Funding Date shall be
      within fifteen (15) days following (i) the issuance of the FERC Certificate
      (which may be subject to conditions) approving the Project, and (ii) the earlier
      of (A) the date FGT shall have commenced construction of any part of the Project
      and (B) acceptance by FGT of the FERC Certificate).  FGT shall
      immediately provide written notice to the Administrative Agent upon each of
      the
      issuance and acceptance of the FERC Certificate and commencement of construction
      of any part of the Project.  The Borrower agrees (i) to accept the
      full amount of the Construction Loan to be funded on the Funding Date, and
      (ii)
      to use commercially reasonable efforts to timely satisfy each of the Lenders’
conditions precedent to funding hereunder, including, without limitation, to,
      and to cause FGT to, obtain the FERC Certificate on or before September 1,
      2009;
      provided that the Borrower and FGT reserve the right to file and prosecute
      the
      application for the FERC Certificate (including any supplements or amendments
      thereto and, if necessary, any court review) in a manner they  deem to
      be in their best interest.  The Administrative Agent shall promptly
      notify each Lender of the contents of the Funding Certificate.

     

    
      
              

                            
                          
      

                  
      
      

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    (b)           Subject
      to the terms and conditions of this Agreement, the Borrowing shall be funded
      not
      later than 2:00 P.M. (New York City time) on the Funding Date in the aggregate
      principal amount of Five Hundred Million and No/100 Dollars ($500,000,000.00)
      .  Each Lender shall, before 11:00 A.M. (New York City time) on the
      date of the Borrowing, make available to the Administrative Agent at its Payment
      Office, in same day funds, such Lender’s ratable portion of the
      Borrowing.  After the Administrative Agent’s receipt of such funds and
      upon fulfillment of the applicable conditions set forth in Article III, the
      Administrative Agent will make such funds available to the Borrower by wire
      transfer to an account designated by the Borrower in the writing given to the
      Administrative Agent at least seven (7) Business Days prior to the Funding
      Date,
      provided that, if the Borrower shall fail to provide such wire transfer
      instructions to the Administrative Agent, the Administrative Agent will make
      such funds available to the Borrower at its address set forth in Section
      8.02.

     

    (c)           Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      date of the Borrowing that such Lender will not make available to the
      Administrative Agent such Lender’s ratable portion of the Borrowing, the
      Administrative Agent may assume that such Lender has made such portion available
      to the Administrative Agent on the date of the Borrowing in accordance with
      subsection (a) of this Section 2.02 and the Administrative Agent may,
      in reliance upon such assumption, make available to the Borrower on such date
      a
      corresponding amount.  If and to the extent that such Lender shall not
      have so made such ratable portion available to the Administrative Agent, such
      Lender and the Borrower severally agree to repay to the Administrative Agent
      forthwith on demand such corresponding amount together with interest thereon,
      for each day from the date such amount is made available to the Borrower until
      the date such amount is repaid to the Administrative Agent, at the interest
      rate
      applicable at such time to the Loan.  If such Lender shall repay to
      the Administrative Agent such corresponding amount, such amount so repaid shall
      constitute such Lender’s Loan as part of the Borrowing for purposes of this
      Agreement.

     

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

     

    SECTION
      2.03.  Repayment; Noteless
      Agreement.  

     

    (a)           On
      each Repayment Date, the Borrower shall repay to the Administrative Agent,
      for
      the account of the Lenders, an amount equal to the Repayment Amount due on
      such
      Repayment Date.  On the Final Maturity Date, the Borrower shall repay
      to the Administrative Agent, for the account of each Lender, the full unpaid
      principal amount of the Loan made by such Lender, together will all accrued
      and
      unpaid interest thereon and all other sums due and payable hereunder and under
      the other Loan Documents.

     

    (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 the Loan made by such Lender from time to time, including the amounts
      of
      principal and interest payable and paid to such Lender from time to time
      hereunder.

     

    
      
              

                            
                          
      

                  
      
      

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    (c)           The
      Administrative Agent shall also maintain accounts in which it will record (i)
      the amount of each Loan made hereunder, (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 and each Lender's share thereof.

     

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

     

    (e)           Any
      Lender may request that the Loan owing to such Lender be evidenced by a
      Note.  In such event, the Borrower shall prepare, execute and deliver
      to such Lender such Note payable to the order of such
      Lender.  Thereafter, the Loan evidenced by such Note and interest
      thereon shall at all times (including after any assignment pursuant to Section
      8.06) be represented by one or more Notes payable to the order of the payee
      named therein or any assignee pursuant to Section 8.06, except to the extent
      that any such Lender or assignee subsequently returns any such Note for
      cancellation and requests that such Loan once again be evidenced as described
      in
      paragraphs (b) and (c) above.

     

    SECTION
      2.04.  Interest.  The Borrower shall pay
      interest on the unpaid principal amount of the Loan owed to each Lender from
      the
      date of the Loan until such principal amount shall be paid in full, at the
      following rates per annum:

     

    (a)           Construction
      Loan.  During such period as the Loan is a Construction Loan, a
      rate per annum equal at all times to the sum of the LIBOR Rate in effect from
      time to time plus the Applicable Margin, payable on each Interest Payment
      Date occurring during such period.

     

    (b)           Term
      Loan.  From and after the date the Loan is converted to a Term
      Loan in accordance with Section 2.01(b), a rate per annum equal at all times
      to
      the sum of the Treasury Rate plus the Applicable Margin per annum,
      payable on each Repayment Date occurring during such period.

     

    SECTION
      2.05.  Interest Rate Determination.  The
      Administrative Agent shall give prompt notice to the Borrower and the Lenders
      of
      the applicable interest rate determined by the Administrative Agent for purposes
      of Section 2.04(a) or (b) and of the Repayment Amount and Repayment Dates
      determined by the Administrative Agent as contemplated by the respective
      definitions thereof.

     

    SECTION
      2.06.  Default Rate.  At the discretion of
      the Administrative Agent or as directed by the Majority Lenders, upon the
      occurrence and during the continuance of an Event of Default, the outstanding
      Loan shall bear interest at the Default Rate.  Without limiting the
      generality of the foregoing, if any amounts required to be paid by the Borrower
      or any of its Subsidiaries under this Agreement or the other Loan Documents
      (including principal or interest payable on the Loan, and any fees or other
      amounts otherwise payable to the Administrative

     

    
      
              

                            
                          
      

                  
      
      

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    Agent
      or
      any Lender) remain unpaid after such amounts are due, the Borrower shall pay
      interest on the aggregate, unpaid balance of such amounts from the date due
      until those amounts are paid in full at a per annum rate equal to the Default
      Rate, such amounts to be payable upon demand.

     

    SECTION
      2.07.  Prepayments; Deferrals.

     

    (a)           Voluntary
      Prepayments.  The Borrower may not voluntarily prepay the Loan in
      whole or in part at any time.

     

    (b)           Mandatory
      Prepayment.  Upon the occurrence of a Change of Control, the
      Lenders shall, at their sole option, have the right to require the Borrower
      to
      prepay the Loan (including the outstanding principal and any accrued and unpaid
      interest) in whole or in part within ninety (90) days of the occurrence of
      such
      Change of Control at a prepayment premium equal to one hundred two percent
      (102%) of the outstanding principal balance of the Loan to be prepaid, together
      with all accrued and unpaid interest thereon and all other amounts then due
      and
      owing under the Loan Documents.

     

    (c)           Deferrals.  The
      Borrower shall not have the right to defer any principal or interest payments
      at
      any time.

     

    SECTION
      2.08.  Payments and Computations.

     

    (a)           The
      Borrower shall make each payment under any Loan Document not later than 11:00
      A.M. (New York City time) on the day when due in Dollars to the Administrative
      Agent at its Payment Office in same day funds.  The Administrative
      Agent will promptly thereafter cause to be distributed like funds relating
      to
      the payment of principal and interest ratably (other than amounts payable
      pursuant to Section 2.09) to the Lenders (decreased, as to any Lender, for
      any taxes withheld in respect of such Lender as contemplated by
      Section 2.09(b)), and like funds relating to the payment of any other
      amount payable to any Lender to such Lender, in each case to be applied in
      accordance with the terms of this Agreement.  All payments to be made
      by the Borrower shall be made without condition or deduction for any
      counterclaim, defense, recoupment or setoff.

     

    (b)           All
      computations of interest in respect of the Construction Loan shall be made
      by
      the Administrative Agent on the basis of a year of 360 days, in each case for
      the actual number of days (including the first day but excluding the last day)
      occurring in the period for which such interest is payable.  All
      computations of interest in respect of the Term Loan shall be made by the
      Administrative Agent on the basis of a year of 360 days of twelve 30-day months,
      and, in each case of an incomplete month, for the actual number of days
      elapsed.  Each determination by the Administrative Agent of an
      interest rate hereunder shall be conclusive and binding for all purposes, absent
      manifest error.

     

    (c)           Whenever
      any payment hereunder or under the Notes shall be stated to be due on a day
      other than a Business Day, such payment shall be made on the next succeeding
      Business Day, and such extension of time shall in such case be included in
      the
      computation of payment of interest.

     

    
      
              

                            
                          
      

                  
      
      

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

     

    SECTION
      2.09.  Taxes.

     

    (a)           Any
      and all payments by the Borrower hereunder or under the Notes shall be made,
      in
      accordance with Section 2.08, free and clear of and without deduction for
      any and all present or future taxes, levies, imposts, deductions, charges,
      fees,
      duties or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Administrative Agent,
      (i) taxes imposed on its income, and franchise taxes imposed on it, by the
      jurisdiction under the Applicable Laws of which (or by a jurisdiction under
      the
      Applicable Laws of a political subdivision of which) such Lender or
      Administrative Agent (as the case may be) is organized or any political
      subdivision thereof and (ii) any taxes imposed by the United States of
      America by means of withholding at the source if and to the extent that such
      taxes shall be in effect and shall be applicable, on the date hereof (or with
      respect to any entity that becomes a Lender after the date hereof, on the date
      such entity becomes a Lender), to payments to be made to such Lender or the
      Administrative Agent (all such non-excluded taxes, levies, imposts, deductions,
      charges, fees, duties, withholdings and liabilities being hereinafter referred
      to as “Taxes”).  If the Borrower shall be required by
      Applicable Law to deduct any Taxes from or in respect of any sum payable
      hereunder or under any Note to any Lender or the Administrative Agent,
      (x) the sum payable shall be increased as may be necessary so that after
      making all required deductions (including deductions applicable to additional
      sums payable under this Section 2.09) such Lender or the Administrative
      Agent (as the case may be) receives an amount equal to the sum it would have
      received had no such deductions been made, (y) the Borrower shall make such
      deductions and (z) the Borrower shall pay the full amount deducted to the
      relevant taxation authority or other authority in accordance with Applicable
      Law.

     

    (b)           Notwithstanding
      anything to the contrary contained in this Agreement, each of the Borrower
      and
      the Administrative Agent shall be entitled, to the extent it is required to
      do
      so by Applicable Law, to deduct or withhold income or other similar taxes
      imposed by the United States of America from interest, fees or other amounts
      payable hereunder for the account of any Lender (without the payment by the
      Borrower of increased amounts to such Lender pursuant to Section 2.09(a))
      other than a Lender (i) which is a domestic corporation (as such term is
      defined in Section 7701 of the Code) for federal income tax purposes or
      (ii) which has the Prescribed Forms on file with the Borrower and the
      Administrative Agent for the applicable year to the extent deduction or
      withholding of such taxes is not required as a result of the filing of such
      Prescribed Forms; provided that if the Borrower shall so deduct or
      withhold any such taxes, it shall provide a statement to the Administrative
      Agent and such Lender, setting forth the

     

    
      
              

                            
                          
      

                  
      
      

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    amount
      of
      such taxes so deducted or withheld, the applicable rate and any other
      information or documentation which such Lender or the Administrative Agent
      may
      reasonably request for assisting such Lender or the Administrative Agent to
      obtain any allowable credits or deductions for the taxes so deducted or withheld
      in the jurisdiction or jurisdictions in which such Lender is subject to
      tax.

     

    (c)           In
      addition, the Borrower agrees to pay any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies which
      arise from any payment made hereunder or under the Notes or from the execution,
      delivery or registration of, or otherwise with respect to, this Agreement,
      the
      Notes or any other Loan Documents (hereinafter referred to as “Other
      Taxes”).

     

    (d)           The
      Borrower, to the fullest extent permitted by Applicable Law, will indemnify
      each
      Lender and the Administrative Agent, for the full amount of Taxes or Other
      Taxes
      (including, without limitation, any Taxes or Other Taxes imposed by any
      jurisdiction on amounts payable under this Section 2.09) paid by such
      Lender or the Administrative Agent, (as the case may be) and any liability
      (including penalties, interest and expenses) arising therefrom or with respect
      thereto except as a result of the gross negligence or willful misconduct of
      such
      Lender or the Administrative Agent, whether or not such Taxes or Other Taxes
      were correctly or legally asserted.  This indemnification shall be
      made within 30 days from the date such Lender or the Administrative Agent (as
      the case may be) makes written demand therefor.  Neither the
      Administrative Agent nor any Lender shall be indemnified for Taxes incurred
      or
      accrued more than 90 days prior to the date that such Lender or the
      Administrative Agent notifies the Borrower thereof.

     

    (e)           Within
      30 days after the date of any payment of Taxes or Other Taxes by or at the
      direction of the Borrower, the Borrower will furnish to the Administrative
      Agent, at its address referred to in Section 8.02, the original or a
      certified copy of a receipt evidencing payment thereof.  Should any
      Lender or the Administrative Agent ever receive any refund, credit or deduction
      from any taxing authority to which such Lender or the Administrative Agent
      would
      not be entitled but for the payment by the Borrower of Taxes or Other Taxes
      as
      required by Section 2.09 (it being understood that the decision as to
      whether or not to claim, and if claimed, as to the amount of any such refund,
      credit or deduction shall be made by such Lender or the Administrative Agent
      in
      its sole discretion), such Lender or the Administrative Agent, as the case
      may
      be, thereupon shall repay to the Borrower an amount with respect to such refund,
      credit or deduction equal to any net reduction in taxes actually obtained by
      such Lender or the Administrative Agent, as the case may be, and determined
      by
      such Lender or the Administrative Agent, as the case may be, to be attributable
      to such refund, credit or deduction.

     

    (f)           Without
      prejudice to the survival of any other agreement of the Borrower hereunder,
      the
      agreements and obligations of the Borrower contained in this Section 2.09
      shall survive the payment in full of principal and interest hereunder and under
      the Notes.

     

    (g)           Each
      Lender (other than Pipeline Funding Company, LLC) shall use its commercially
      reasonable efforts (consistent with its internal policies and legal and
      regulatory restrictions) to select a jurisdiction for its applicable lending
      office or change the jurisdiction for its applicable lending office, as the
      case
      may be, so as to avoid the imposition of any Taxes or

     

    
      
              

                            
                          
      

                  
      
      

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    Other
      Taxes or to eliminate the amount of any such additional amounts which may
      thereafter accrue; provided that no such selection or change of the jurisdiction
      of its applicable lending office shall be made if, in the sole and absolute
      discretion of such Lender, such selection or change would be disadvantageous
      to
      such Lender.

     

    SECTION
      2.10.  Sharing of Payments, Etc.  If any
      Lender shall obtain any payment (whether voluntary, involuntary, through the
      exercise of any right of set-off, or otherwise) on account of the Loan made
      by
      it (other than pursuant to Section 2.09), such Lender shall notify the
      Administrative Agent and forthwith purchase from the other Lenders such
      participations in the Loan made by them as shall be necessary to cause such
      purchasing Lender to share the excess payment ratably with each of them;
      provided, however, that if all or any portion of such excess payment is
      thereafter recovered from such purchasing Lender, such purchase from each Lender
      shall be rescinded and such Lender shall repay to the purchasing Lender the
      purchase price to the extent of such Lender’s ratable share (according to the
      proportion of (a) the amount of the participation purchased from such Lender
      by
      the purchasing Lender as a result of such excess payment to (b) the total amount
      of such excess payment) of such recovery, together with an amount equal to
      such
      Lender’s ratable share (according to the proportion of (i) the amount of
      such Lender’s required repayment to the purchasing Lender to (ii) the total
      amount of all such required repayments to the purchasing Lenders) of any
      interest or other amount paid or payable by the purchasing Lender in respect
      of
      the total amount so recovered.  The Borrower agrees that any Lender so
      purchasing a participation from another Lender pursuant to this Section 2.10
      may, to the fullest extent permitted by Applicable Law, exercise all its rights
      of payment (including the right of set-off) with respect to such participation
      as fully as if such Lender were the direct creditor of the Borrower in the
      amount of such participation.

     

    ARTICLE
      III

    CONDITIONS
      PRECEDENT

     

    SECTION
      3.01.  Conditions Precedent to Closing
      Date.  The obligations of the Lenders to make the Loan hereunder
      shall not become effective until the date on which each of the following
      conditions is satisfied (or waived by the Lenders in accordance with Section
      8.01):

     

    (a)           Documents.  The
      Administrative Agent shall have received the following, each dated on or before
      the Closing Date, in form and substance reasonably satisfactory to the
      Administrative Agent:

     

    (i)           This
      Agreement executed by the Borrower, the Administrative Agent and Lenders holding
      Commitments which aggregate to $500,000,000, and all attached exhibits and
      schedules, and the Negative Pledge executed by FGT.

     

    (ii)           Certified
      copies of the resolutions of the Board of Directors of the Borrower approving
      this Agreement, each Note and any other Loan Documents, and of all other
      documents evidencing other necessary corporate action with respect to each
      such
      Loan Document and certified copies of the certificate of incorporation and
      bylaws of the Borrower.

     

    (iii)           Certified
      copies of the resolutions of the Board of Managers of FGT approving the Negative
      Pledge and of all other documents evidencing other necessary

     

    
      
              

                            
                          
      

                  
      
      

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    limited
      liability company action with respect to the Negative Pledge and certified
      copies of the certificate of formation and limited liability company agreement
      of FGT.

     

    (iv)           A
      certificate of the Secretary or an Assistant Secretary of the Borrower
      certifying the names and true signatures of the officers of the Borrower
      authorized to sign each Loan Document to which it is a party and the other
      documents to be delivered hereunder.

     

    (v)           A
      certificate of the Secretary or an Assistant Secretary of FGT certifying the
      names and true signatures of the officers of FGT authorized to sign each Loan
      Document to which it is a party and the other documents to be delivered
      hereunder.

     

    (vi)           As
      requested by the Lenders, the Notes executed by the Borrower and payable to
      the
      order of the Lenders.

     

    (vii)           A
      budget for the Project, as of a recent date (as the same may be modified,
      amended or supplemented from time to time as permitted herein, the “Project
      Budget”) for all Project Costs incurred to date, and all anticipated Project
      Costs to be incurred in connection with the construction of the Project,
      certified by a Responsible Officer of the Borrower as being true, correct and
      complete.

     

    (viii)                      A
      schedule for construction of the Project, as of a recent date (as the same
      may
      be modified, amended or supplemented from time to time as permitted herein,
      the
“Project Schedule”) setting out the proposed construction and payment
      schedule and amounts for the Project, which schedule shall be consistent with
      the terms of the applicable Construction Contracts and the Project Budget,
      certified by a Responsible Officer of the Borrower as being true, correct and
      complete.

     

    (ix)           An
      opinion of Locke Lord Bissell & Liddell LLP, as counsel to the Borrower, and
      an opinion of in house counsel of Southern Union Company, as counsel to the
      Borrower, in each case to be delivered to, and for the benefit of, the Lenders
      and the Administrative Agent, at the express instruction of the Borrower, in
      form and covering such matters as the Administrative Agent may reasonably
      request including the matters set forth in Schedule 8.

     

    (b)           On
      Closing Date, the Borrower shall have paid all reasonable costs and expenses
      that have been invoiced and are payable pursuant to
      Section 8.04.

     

    SECTION
      3.02.  Conditions Precedent to Construction
      Loan.  The obligations of the Lenders to make the Construction
      Loan hereunder shall not become effective until the date on which each of the
      following conditions is satisfied (or waived by the Lenders in accordance with
      Section 8.01):

     

    (a)           Documents.  The
      Administrative Agent shall have received the following, each dated on or before
      the Funding Date, in form and substance reasonably satisfactory to the
      Administrative Agent:

     

    
      
              

                            
                          
      

                  
      
      

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      (i)           A Uniform
      Commercial Code (“UCC”) report as of a date reasonably close to the
      Funding Date for each of the jurisdictions listed on Schedule 4, showing no
      financing statements or Liens of record other than such statements relating
      to
      Permitted Liens.

     

    (ii)           A
      schedule of all Indebtedness of the Borrower and each of its Subsidiaries,
      in
      each case indicating the amount, term and payment terms and the collateral
      security therefor.

     

    (iii)           A
      Funding Certificate, dated as of the Funding Date, signed by a Responsible
      Officer of the Borrower, in substantially the form of Exhibit B (“Funding
      Certificate”).

     

    (iv)           A
      statement of a Responsible Officer of the Borrower describing its sources of
      equity capital and debt financing by the Borrower and its Subsidiaries necessary
      to fully develop, construct, complete and operate the Project.

     

    (v)           (i)
      A certificate from Borrower’s insurance broker(s), dated as of the Funding Date
      (or within two (2) Business Days prior thereto), and identifying underwriters,
      types of insurance, insurance limits and policy terms, describing the insurance
      obtained and stating that such insurance is in full force and effect and that
      all premiums due thereon have been paid, and (ii) certified copies of all
      policies evidencing such insurance (or a binder, commitment or certificates
      signed by the insurer or a broker authorized to bind the insurer).

     

    (vi)           A
      list, certified by a Responsible Officer of Borrower as being true, correct
      and
      complete, of all Material Facility Agreements (including any supplements or
      amendments thereto) and, subject to Section 5.03 hereof, any summaries or copies
      of such Material Facility Agreements requested by the Administrative
      Agent.

     

    (vii)           Projections
      (collectively, the “Projections”) of the (A) operating results for the
      Existing Pipeline and the Project over a period beginning on the Funding Date
      and ending on December 31, 2015, showing at a minimum the Borrower’s reasonable
      good faith estimates, as of the date of delivery, of revenue, operating
      expenses, and sources and uses of revenues over the forecast period, and (B)
      operating results for the Project over a period beginning on the Funding Date
      and ending on December 31, 2033, showing at a minimum the Borrower’s reasonable
      good faith estimates, as of the date of delivery, of revenue, operating
      expenses, and sources and uses of revenues over the forecast period and meeting
      the requirements of the Project Budget for the Project.

     

    (viii)                      An
      update to the Project Budget reflecting all Project Costs incurred to date,
      and
      all anticipated Project Costs to be incurred, in connection with the
      construction of the Project.

     

    (ix)           An
      update to the Project Schedule setting out, as of the Funding Date, the proposed
      construction and payment schedule and amounts for the Project, which schedule
      shall be consistent with the terms of the applicable Construction Contracts
      and
      the Project Budget.

     

    
      
              

                            
                          
      

                  
      
      

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    (x)           An
      updated list of all Material Applicable Permits (whether by Borrower or any
      Person that is party to any Facility Agreement in order to perform its
      obligations thereunder), and, if requested by the Administrative Agent, copies
      of each Material Applicable Permit listed on such Permit Schedule that has
      been
      obtained prior to the Funding Date.

     

    (xi)           A
      list of Environmental Reports relating to the Project and the Existing Pipeline
      as of the Funding Date and, if requested by the Administrative Agent, copies
      of
      such Environmental Reports.

     

    (xii)           Copies
      of each presentation made by the Borrower and/or FGT to any rating agency on
      or
      after the Closing Date and, to the extent any such presentation gives any effect
      to the Project, prior to the Closing Date.

     

    (xiii)                      Subject
      to Section 5.03, such other opinions, statements, certificates, documents and
      information with respect to the Borrower, FGT, the Existing Pipeline or the
      Project or matters contemplated by this Agreement as the Administrative Agent
      or
      the Lenders may reasonably request.

     

    (b)           Material
      Adverse Change.  Since December 31, 2006, there shall not have
      occurred a Material Adverse Change.

     

    (c)           Absence
      of Litigation.  Except as set forth on Schedule 10, no action,
      suit, proceeding or investigation shall have been instituted or, to the
      Borrower’s knowledge, threatened, against the Borrower or any of its
      Subsidiaries, which, if adversely determined, could reasonably be expected
      to
      result in a Material Adverse Change.

     

    (d)           No
      Default or Event of Default.  No Default or Event of Default shall
      have occurred and be continuing (nor would result from such Borrowing or from
      the application of the proceeds therefrom).

     

    (e)           Costs
      and Expenses.  The Borrower shall have paid all reasonable costs
      and expenses that have been invoiced and are payable pursuant to
      Section 8.04.

     

    (f)           Casualty.
      If all or any portion of the Project shall have been materially damaged by
      flood, fire or other casualty, the Administrative Agent shall have received
      assurances sufficient, in the reasonable judgment of the Administrative Agent
      to
      assure restoration and the completion of the Project prior to the Project
      Completion Date.

     

    (g)           Representations,
      Warranties and Covenants.  (x)  The representations and
      warranties contained in Section 4.01 of this Agreement shall be true and
      correct in all material respects on and as of the Funding Date (other than
      those
      representations and warranties that expressly relate solely to an earlier date,
      which shall be true and correct as of such earlier date), before and after
      giving effect to the Loan and the Borrowing of which the Loan is a part and
      to
      the application of the proceeds therefrom, as though made on and as of such
      date; (y) the Borrower shall not be in default in any material respect of any
      covenant on its part contained in this Agreement; and (z) FGT shall not be
      in
      default in any material respect of any covenant on its part contained in the
      Negative Pledge.

     

    
      
              

                            
                          
      

                  
      
      

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    (h)           FERC
      Approval.  The FERC Certificate approving the Project shall (i)
      have been issued to, and accepted by FGT (for avoidance of doubt, FGT shall
      be
      entitled to accept or reject the FERC Certificate in its sole and absolute
      discretion), (ii) be in full force and effect, (iii) be final and not subject
      to
      any appeals, stays or any similar rights, (iii) contain conditions as are
      reasonably acceptable to the Administrative Agent and the Lenders, provided,
      however, that, notwithstanding the foregoing, minor amendments or other minor
      changes that may be necessary to such FERC Certificate during the remaining
      construction of the Project would not cause a failure to meet the foregoing
      condition so long as such amendments or changes are reasonably likely to be
      granted.

     

    SECTION
      3.03.  No Approval of Work.  The making of
      the Loan hereunder shall not be deemed an approval or acceptance by the
      Administrative Agent or the Lenders of any work, labor, supplies, materials
      or
      equipment furnished or supplied with respect to the Project.

     

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES

     

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

     

    (a)           The
      Borrower and each Subsidiary is a corporation, limited liability company or
      partnership, as applicable, and is duly formed, validly existing and in good
      standing in each case under the laws of its jurisdiction of
      formation.  The Borrower and each Subsidiary have all limited
      liability company, corporate or partnership powers and all material governmental
      licenses, authorizations, consents and approvals required in each case to carry
      on its business as now conducted.  The Borrower has no Subsidiaries as
      of the date hereof other than as set forth on Schedule 5, which Subsidiaries
      listed on Schedule 5 (other than FGT) hold no assets and conduct no
      business.

     

    (b)           The
      execution, delivery and performance by the Borrower and FGT of each Loan
      Document to which it is or will be a party are within the Borrower’s and FGT’s
      corporate or limited liability company powers, have been duly authorized by
      all
      necessary corporate or limited liability company action of the Borrower and
      FGT,
      as applicable, require, in respect of the Borrower and FGT, no action by or
      in
      respect of, or filing with, any governmental body, agency or official and do
      not
      contravene, or constitute a default under, any provision of Applicable Law
      or
      regulation (including, without limitation, Regulation X issued by the Federal
      Reserve Board) applicable to the Borrower or FGT or Regulation U issued by
      the
      Federal Reserve Board or the certificate of incorporation, bylaws, certificate
      of formation, limited liability company agreement or other organizational
      documents of the Borrower or FGT, as applicable, or any judgment, injunction,
      order, decree or material (“material” for the purposes of this representation
      means creating a liability of $35,000,000 or more) agreement binding upon the
      Borrower or FGT or result in the creation or imposition of any Lien (other
      than
      Permitted Liens) on any asset of the Borrower or any of its
      Subsidiaries.

     

    (c)           This
      Agreement and each Note are, and each other Loan Document to which the Borrower
      or FGT is or will be a party, when executed and delivered in accordance with
      this Agreement will be valid and legally binding obligations of the Borrower
      and
      FGT, as

     

    
      
              

                            
                          
      

                  
      
      

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    the
      case
      may be, enforceable against the Borrower and FGT, as the case may be, in
      accordance with their respective terms, except as the enforceability thereof
      may
      be limited by the effect of any applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting creditors’ rights generally
      and by general principles of equity.

     

    (d)           (i)
      The audited Consolidated balance sheet of the Borrower as of December 31,
      2006 and the related audited Consolidated statements of income and retained
      earnings and cash flow of the Borrower for the Fiscal Year then ended, and
      the
      unaudited Consolidated balance sheets of the Borrower for the Fiscal Quarter
      ending September 30, 2007 and the related Consolidated statements of income
      and
      retained earnings and cash flows of the Borrower for such Fiscal Quarter and
      for
      the period commencing at the end of the previous Fiscal Year and ending with
      the
      end of such Fiscal Quarter, copies of which, certified by the Chief Financial
      Officer or Chief Accounting Officer of the Borrower as being true, complete
      and
      correct, have been delivered to each of the Lenders, fairly present, in
      conformity with GAAP except as otherwise expressly noted therein and, in the
      case of unaudited quarterly financial statements subject to normal year end
      audit adjustments, the Consolidated financial position of the Borrower and
      its
      Subsidiaries as of such date and their Consolidated results of operations and
      changes in financial position for the respective periods covered
      thereby.

     

    (ii)  The
      audited balance sheet of FGT as of December 31, 2006 and the related
      audited statements of income and retained earnings and cash flow of FGT for
      the
      Fiscal Year then ended, and the unaudited balance sheets of FGT for the Fiscal
      Quarter ending September 30, 2007 and the related statements of income and
      retained earnings and cash flows of FGT for such Fiscal Quarter and for the
      period commencing at the end of the previous Fiscal Year and ending with the
      end
      of such Fiscal Quarter, copies of which, certified by the Chief Financial
      Officer or Chief Accounting Officer of FGT as being true, complete and correct,
      have been delivered to each of the Lenders, fairly present, in conformity with
      GAAP except as otherwise expressly noted therein and, in the case of unaudited
      quarterly financial statements subject to normal year end audit adjustments,
      the
      financial position of FGT as of such date and its results of operations and
      changes in financial position for the respective periods covered
      thereby.

     

    (iii)           There
      are no suretyship agreements, guarantees or other contingent liabilities of
      the
      Borrower or any of its Subsidiaries that are not disclosed (i) by the financial
      statements referred to above in this Section 4.01(d), or (ii) on Schedule
      9.

     

    (e)           Since
      December 31, 2006, there has been no Material Adverse Change.

     

    (f)           There
      is no action, suit, investigation or other proceeding pending or, to the
      knowledge of Borrower, threatened, against the Borrower, any Subsidiary of
      the
      Borrower or any of their respective Properties, in any court or by or before
      any
      arbitrator or governmental authority which (i) in any manner draws into question
      the validity or enforceability of this Agreement or any other Loan Document
      to
      which the Borrower or FGT is or will be a party or (ii) except as set forth
      on
      Schedule 10, other than to the extent that is fully covered by insurance, if
      determined adversely could reasonably be expected to result in damages to the
      Borrower or any of its Subsidiaries totaling more than $50,000,000 or otherwise
      result in a Material Adverse Change.  Without limiting the generality
      of the foregoing, to the Borrower’s knowledge, there

     

    
      
              

                            
                          
      

                  
      
      

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    are
      no
      investigations (formal or informal) currently pending before FERC’s Office of
      Market Oversight and Investigation (“OMOI”) or before OMOI’s Division of
      Investigations and Enforcement with respect to the Borrower or any of its
      Subsidiaries.

     

    (g)           No
      Termination Event has occurred or is reasonably expected to occur with respect
      to any Plan for which an Insufficiency in excess of $50,000,000
      exists.  Neither the Borrower nor any ERISA Affiliate has received any
      notification (or has knowledge of any reason to expect) that any Multiemployer
      Plan is in reorganization or has been terminated, within the meaning of Title
      IV
      of ERISA, for which a Withdrawal Liability in excess of $50,000,000
      exists.

     

    (h)           United
      States federal income tax returns of the Borrower and its Subsidiaries have
      been
      examined and closed through the Fiscal Year ended December 31,
      2001.  The Borrower and its Subsidiaries have filed or caused to be
      filed all United States federal income tax returns and all other material
      domestic tax returns that to the knowledge of the Borrower are required to
      be
      filed by them and have paid or provided for the payment, before the same become
      delinquent, of all taxes due pursuant to such returns or pursuant to any
      assessment received by the Borrower or any Subsidiary, other than those taxes
      contested in good faith by appropriate proceedings.  The charges,
      accruals and reserves on the books of the Borrower and its Subsidiaries in
      respect of taxes are, in the opinion of the Borrower, adequate to the extent
      required by GAAP.

     

    (i)           Neither
      the Borrower nor any of its Subsidiaries is an “investment company” within the
      meaning of the Investment Company Act of 1940, as amended.  Neither
      the Borrower nor any of its Subsidiaries is (I) a “holding company” under, or a
      company subject to the registration requirements of, PUHCA, (II) a “subsidiary
      company” of a company described in (I), or (III) an “affiliate” of either a
      company described in (I) or a “subsidiary company” of a company described in
      (I).

     

    (j)           Following
      application of the proceeds of the Loan, not more than 25 percent of the value
      of the assets (either of the Borrower only or of the Borrower and its
      Subsidiaries on a Consolidated basis), which are subject to any arrangement
      with
      the Administrative Agent or any Lender (herein or otherwise) whereby the
      Borrower’s or any Subsidiary’s right or ability to sell, pledge or otherwise
      dispose of assets is in any way restricted, will be margin stock (within the
      meaning of Regulation U issued by the Federal Reserve Board).

     

    (k)           Each
      of the Borrower and its Subsidiaries (i) is in substantial compliance with
      all
      applicable Environmental Laws in all material respects and has obtained and
      is
      in substantial compliance with all related Permits necessary for the ownership
      and operation of its Property and business, except where the failure to so
      comply could not reasonably be expected to result in a Material Adverse Change,
      and (ii) has not created, handled, transported, used, or disposed of any
      Hazardous Materials except in substantial compliance with
      all Environmental Laws in all material respects, nor, to its knowledge, has
      any
      of its currently or previously owned Property been used for those purposes,
      except where any such action that fails to so comply could not reasonably be
      expected to result in a Material Adverse Change.

     

    (l)           Neither
      the Borrower nor any of its Subsidiaries (i) is responsible for the release
      of
      any Hazardous Materials into the environment except in
      substantial compliance with

     

    
      
              

                            
                          
      

                  
      
      

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    all
      applicable Environmental Laws in all material respects, except where any such
      release that does not so comply could not reasonably be expected to result
      in a
      Material Adverse Change and, to its knowledge, neither the Borrower’s nor any of
      its Subsidiaries’ currently or previously owned Property has been subjected to
      any release of or is contaminated by any Hazardous Materials, except where
      any
      such release or contamination could not reasonably be expected to result in
      a
      Material Adverse Change; or (ii) has, since December 31, 2000, received
      notice of or been investigated for any violation or alleged violation of any
      Environmental Law which has not been remedied in accordance with Environmental
      Laws, which violation or alleged violation could reasonably be expected to
      result in a Material Adverse Change.

     

    (m)           Each
      of the Borrower and its Subsidiaries has good title to, or valid leasehold
      interests or Easements in, all its real and personal property material to its
      business, subject to no Liens other than Permitted Liens.  Each of the
      Borrower and its Subsidiaries owns, or is licensed to use, all trademarks,
      tradenames, copyrights, patents and other intellectual property material to
      its
      business, and the use thereof by the Borrower and its Subsidiaries does not
      infringe upon the rights of any other Person, except for any such infringements
      that, individually or in the aggregate, could not reasonably be expected to
      result in a Material Adverse Change.

     

    (n)           Fifty
      percent (50%) of the issued and outstanding stock and equity interests of the
      Borrower are owned as of the date hereof by CrossCountry Citrus, LLC
      and  fifty percent (50%) of the issued and outstanding stock and
      equity interests of the Borrower are owned as of the date hereof by El Paso
      Citrus Holdings, Inc., free and clear of any Liens; provided that either such
      entity may transfer stock and equity interests of the Borrower to any Permitted
      Holder to the extent that, after giving effect thereto, no Change of Control
      shall have occurred and be continuing. All of the issued and outstanding stock
      and equity interests of the Subsidiaries of the Borrower are owned by the
      Borrower, free and clear of any Liens. There are no outstanding rights to
      purchase, options, warrants or similar rights or agreements pursuant to which
      the Borrower or any of its Subsidiaries may be required to issue, sell,
      repurchase or redeem any of its stock or other equity interests or any stock
      or
      equity interests of any of its Subsidiaries.  Except as set forth on
      Schedule 6, FGT owns one hundred percent (100%) of the Existing Pipeline and
      the
      Project.

     

    (o)           There
      are no violations by the Borrower or any of its Subsidiaries or in connection
      with any of their respective property or assets of any Legal Requirement
      (including, without limitation, FERC rules and regulations) which could
      reasonably be expected to result in a Material Adverse Change.

     

    (p)           Each
      of Borrower and FGT (or such other Person responsible for operating the Existing
      Pipeline or constructing and operating the Project) has all Permits necessary
      for the conduct of its business as presently conducted, except for those Permits
      the absence of which would not, individually or in the aggregate, reasonably
      be
      expected to result in a Material Adverse Change, and none of such Permits is
      subject to any current legal proceeding or to any unsatisfied condition that
      could reasonably be expected to allow material modification or revocation of
      such Permits, and all applicable appeal periods have expired with respect
      thereto, except to the extent that any of the foregoing, individually or in
      the
      aggregate, would not reasonably be expected to result in a Material Adverse
      Change.  Each of Borrower and FGT

     

    
      
              

                            
                          
      

                  
      
      

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    owns
      or
      possesses all Easements, fee title and other real property rights necessary
      to
      conduct its business as presently conducted without any known conflict with
      the
      rights of others, except to the extent that the failure to own or possess such
      Easements would not, individually or in the aggregate, reasonably be expected
      to
      result in a Material Adverse Change.

     

    (q)           
      Neither Borrower nor FGT is or, but for the passage of time or giving of notice
      or both, will be in breach or default of any Material Facility Agreement and,
      to
      Borrower’s knowledge, no other party to any such Material Facility Agreement is
      or, but for the passage of time or giving of notice or both, will be in breach
      or default of any obligation thereunder, except in each case for such breaches
      or defaults that would not reasonably be expected to result in a Material
      Adverse Change.  The Project has been constructed to date (either by
      the Borrower or FGT and, to Borrower’s knowledge, such other Persons responsible
      for constructing the Project) in compliance with the terms of all applicable
      Material Applicable Permits, Material Facility Agreements, Easements, Prudent
      Natural Gas Pipeline Practices and other Applicable Laws, except where such
      failure to comply would not reasonably be expected to result in a Material
      Adverse Change.

     

    (r)           Neither
      this Agreement nor any certificate or other documentation furnished by the
      Borrower or any of its Subsidiaries to the Administrative Agent in connection
      with the transactions contemplated by this Agreement (other than the
      Projections) (as modified or supplemented by other information so furnished),
      taken as a whole, contained or will contain at the time of delivery thereof
      any
      untrue statement of a material fact or omitted or will omit at the time of
      delivery thereof to state a material fact necessary in order to make the
      statements contained herein or therein, as the case may be, not misleading
      in
      any material respect under the circumstances in which they were made at the
      time
      such statements are made.

     

    (s)           The
      Projections will be, and, to the extent that the Projections have been delivered
      to the Administrative Agent and the Lenders at or prior to the time this
      representation is made or deemed made, were, prepared by or on behalf of
      Borrower in good faith (and in a manner consistent with the Project Budget)
      based upon assumptions that Borrower believes to be reasonable as of such date
      (it being understood that the Projections are subject to significant
      uncertainties and contingencies, many of which are beyond the Borrower’s
      control, and accordingly no assurance can be given and no representations are
      made that the assumptions are correct or that the projections will be
      realized).

     

    (t)           The
      Project Budget (i) was prepared by or on behalf of the Borrower in good faith
      based on assumptions that the Borrower believed to be reasonable as of the
      date
      of preparation of such Project Budget and (ii) was prepared in a manner
      consistent with the Facility Agreements (if any).

     

    (u)           The
      execution and delivery of the Financing Documents by the Borrower and its
      Subsidiaries, as applicable, will not cause the Borrower or any of its
      Subsidiaries to become insolvent.

     

    (v)           No
      Default or Event of Default has occurred and is continuing.

     

    
      
              

                            
                          
      

                  
      
      

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    (w)           Except
      for (i) the instruments and agreements evidencing Indebtedness that are
      described on Schedule 9 attached hereto, (ii) instruments and agreements
      evidencing Indebtedness described in the Citrus Corp. 2008 operating and
      strategic plan dated December 12, 2007, and (iii) instruments and agreements
      evidencing Indebtedness in the aggregate less than $3,000,000, as of the date
      hereof, neither Borrower nor any of its Subsidiaries is a party to any other
      instruments or agreements evidencing Indebtedness, including without limitation
      lines of credit, security agreements, trust indentures, mortgages, deeds of
      trust, guarantees, installment purchase agreements, financing leases, letters
      of
      credit, or financing statements for secured debt.

     

    ARTICLE
      V

     

    COVENANTS
      OF THE BORROWER

     

    SECTION
      5.01.  Affirmative Covenants.  The Borrower
      covenants and agrees that so long as any Obligation remains outstanding or
      any
      Lender shall have any Commitment hereunder, the Borrower will, and will cause
      each of its Subsidiaries to, unless the Majority Lenders shall otherwise consent
      in writing (it being understood and agreed that each of the following covenants
      shall apply to each Subsidiary of the Borrower, whether present or
      future):

     

    (a)           Reporting
      Requirements.  Furnish to each Lender:

     

    (i)           (A)
      as soon as available and in any event within 60 days after the end of each
      of
      the first three Fiscal Quarters of each Fiscal Year of the Borrower, a copy
      of
      the Borrower’s quarterly unaudited Consolidated balance sheet as of the end of
      such Fiscal Quarter and Consolidated statement of income and retained earnings
      and cash flow for such Fiscal Quarter and for the period commencing at the
      end
      of the previous Fiscal Year and ending with the end of such Fiscal Quarter,
      (B) as soon as available and in any event within 120 days after the end of
      each Fiscal Year of the Borrower, a copy of the Borrower’s audited Consolidated
      balance sheet as of the end of such Fiscal Year and audited Consolidated
      statement of income and retained earnings and cash flow for such Fiscal Year,
      (C) as soon as available and in any event within 60 days after the end of each
      of the first three Fiscal Quarters of each Fiscal Year of FGT, a copy of FGT’s
      quarterly unaudited balance sheet as of the end of such Fiscal Quarter and
      a
      statement of income and retained earnings and cash flow for such Fiscal Quarter
      and for the period commencing at the end of the previous Fiscal Year and ending
      with the end of such Fiscal Quarter, and (D) as soon as available and in
      any event within 120 days after the end of each Fiscal Year of FGT, a copy
      of
      FGT’s audited balance sheet as of the end of such Fiscal Year and an audited
      statement of income and retained earnings and cash flow for such Fiscal
      Year;

     

    (ii)           simultaneously
      with the delivery of each of the annual or quarterly reports referred to in
      Section 5.01(a)(i), a Borrower Quarterly Certificate, among other things,
      (A) setting forth in reasonable detail the calculations required to
      establish whether the Borrower and FGT were in compliance with the requirements
      of Section 5.02(j) and Section 5.02(k) on the date of the financial statements
      contained in such report, and (B) stating whether there exists on the date
      of such certificate any Default, and, if so, setting forth the details thereof
      and the action which the Borrower and/or FGT has taken and proposes to take
      with
      respect thereto;

     

    (iii)           as
      soon as is possible and in any event within five (5) Business Days after a
      change in, or issuance of, any rating or outlook of any of the Borrower’s or
      FGT's

     

    
      
              

                            
                          
      

                  
      
      

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    long-term
      debt by Standard & Poor’s or Moody’s, notice to the Administrative Agent of
      such issuance or change;

     

    (iv)           promptly
      after the sending or filing thereof, copies of all reports and registration
      statements which the Borrower or any of its Subsidiaries files with the SEC
      or
      any national securities exchange, if any;

     

    (v)           promptly
      after providing the same to any rating agency, copies of all presentations
      made
      by the Borrower or any of its Subsidiaries to any rating agency on or prior
      to
      the Project Completion Date; provided that nothing herein shall limit the
      obligations of the Borrower set forth in Section 8.06(b) to, among other things,
      provide information as contemplated therein, including, without limitation,
      rating agency presentations, whether made prior to, on or after the Project
      Completion Date;

     

    (vi)           as
      soon as possible and in any event within five (5) Business Days after a
      Responsible Officer of the Borrower having obtained knowledge thereof, notice
      of
      the occurrence of any Default or Event of Default, and a statement of the chief
      financial officer or chief accounting officer of the Borrower setting forth
      details of such Default or Event of Default and the action which the
      Borrower  has taken and proposes to take with respect
      thereto;

     

    (vii)           as
      soon as possible and in any event (A) within 30 Business Days after the
      Borrower or any ERISA Affiliate knows or has reason to know that any Termination
      Event described in clause (i) of the definition of “Termination Event” with
      respect to any Plan for which an Insufficiency in excess of $50,000,000 exists,
      has occurred and (B) within 10 Business Days after the Borrower or any
      ERISA Affiliate knows or has reason to know that any other Termination Event
      with respect to any Plan for which an Insufficiency in excess of $50,000,000
      exists, has occurred or is reasonably expected to occur, a statement of the
      chief financial officer or chief accounting officer of the Borrower describing
      such Termination Event and the action, if any, which the Borrower or such ERISA
      Affiliate proposes to take with respect thereto;

     

    (viii)                      promptly
      and in any event within five (5) Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate, copies of each notice received by the Borrower
      or any ERISA Affiliate from the PBGC stating its intention to terminate any
      Plan
      for which an Insufficiency in excess of $50,000,000 exists or to have a trustee
      appointed to administer any Plan for which an Insufficiency in excess of
      $50,000,000 exists;

     

    (ix)           promptly
      and in any event within five (5) Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate from the sponsor of a Multiemployer Plan, a
      copy
      of each notice received by the Borrower or any ERISA Affiliate indicating
      liability in excess of $50,000,000 incurred or expected to be incurred by the
      Borrower or any ERISA Affiliate in connection with (A) the imposition of a
      Withdrawal Liability by a Multiemployer Plan, (B) the determination that a
      Multiemployer Plan is, or is expected to be, in reorganization within the
      meaning of Title IV of ERISA, or (C) the termination of a Multiemployer
      Plan within the meaning of Title IV of ERISA; and

     

    
      
              

                            
                          
      

                  
      
      

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    (x)           such
      other information respecting the condition or operations, financial or
      otherwise, of the Borrower or any of its Subsidiaries as any Lender through
      the
      Administrative Agent may from time to time reasonably request.

     

    (b)           Use
      of Proceeds.  Contribute the proceeds of the Loan to FGT and cause
      FGT to apply the same to the payment of Project Costs.

     

    (c)           Maintenance
      of Insurance.  Maintain insurance with responsible and reputable
      insurance companies or associations having an A.M. Best rating of at least
      A- in
      such coverage types and amounts as is customarily carried by companies engaged
      in similar businesses and owning similar properties as the Borrower or such
      Subsidiary; provided that self-insurance by the Borrower or any such
      Subsidiary shall not be deemed a violation of this covenant to the extent that
      other companies engaged in similar businesses and owning similar properties
      as
      the Borrower or such Subsidiary self-insure.

     

    (d)           Preservation
      of Corporate Existence, Etc.  Preserve and maintain its corporate
      existence, rights (charter and statutory), and franchises; provided,
however, that this Section 5.01(d) shall not apply to any
      transactions permitted by Section 5.02(c); and provided,
further, that the Borrower or any Subsidiary shall not be required
      to
      preserve any right or franchise if the Borrower or such Subsidiary shall
      reasonably determine that the preservation thereof is no longer desirable in
      the
      conduct of the business of the Borrower or such Subsidiary, as the case may
      be,
      and that the Administrative Agent reasonably determines that the loss thereof
      is
      not disadvantageous in any material respect to the Lenders.

     

    (e)           Visitation
      Rights.  At any reasonable time and from time to time, after
      reasonable notice, permit the Administrative Agent or any of the Lenders or
      any
      agents or representatives thereof, to, during normal business hours, to the
      extent permitted by Applicable Law and subject to Section 5.03 hereof, examine
      the records and books of account of, and visit the properties of, the Borrower
      and any of its Subsidiaries, and to discuss the affairs, finances and accounts
      of the Borrower and any of its Subsidiaries with any of their respective
      officers or directors.

     

    (f)           Warranty
      of Title. Maintain (i) good leasehold or fee title, as the case may be, to
      the Site and good title to the related Easements (or the applicable undivided
      portion thereof), and (ii) good title to all of its other properties and assets
      (other than properties and assets disposed of in strict accordance with the
      provisions of any of the Loan Documents and in the ordinary course of business,
      or which are obsolete or are no longer used or useful in the business of the
      Borrower or its Subsidiaries), in each such case, subject only to Permitted
      Liens.

     

    (g)           Notices.
      Promptly (unless otherwise expressly stated hereinafter), upon acquiring notice
      or giving notice, as the case may be, or obtaining knowledge thereof, give
      written notice to the Administrative Agent of:

     

    (i)           Any
      notice (together with a copy thereof) required to be provided by the Borrower
      or
      any of its Subsidiaries to any holder of any other Indebtedness of the Borrower
      or such Subsidiary pursuant to the agreement or agreements evidencing such
      Indebtedness;

     

    
      
              

                            
                          
      

                  
      
      

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    (ii)           Any
      litigation or other proceeding pending or, to the knowledge of the Borrower,
      threatened against the Borrower or any of its Subsidiaries and (A) which involve
      claims against the Borrower or any of its Subsidiaries in excess of $35,000,000
      individually or $50,000,000 in the aggregate per calendar year or (B) that
      could
      reasonably be expected to result in a Material Adverse Change;

     

    (iii)           Any
      dispute or disputes which may exist between the Borrower or any of its
      Subsidiaries and any Governmental Authority and which involve (A) claims against
      the Borrower or any of its Subsidiaries which exceed $35,000,000 individually
      or
      $50,000,000 in the aggregate per calendar year, or (B) any other matters that
      could reasonably be expected to result in a Material Adverse
      Change;

     

    (iv)           Any
      casualty, damage or loss, whether or not insured, through fire, theft, other
      hazard or casualty, if such casualty, damage or loss affects the Borrower,
      any
      of its Subsidiaries, the Existing Pipeline or the Project, in excess of
      $35,000,000 for any one casualty or loss or $50,000,000 in the aggregate in
      any
      policy period;

     

    (v)           Any
      cancellation or lapse of coverage of any insurance related to the Existing
      Pipeline or the Project;

     

    (vi)           Any
      matter which has had, or could reasonably be expected to result in, a Material
      Adverse Change;

     

    (vii)           Any
      material default or notice thereof (including any notice of default) under
      any
      Material Facility Agreement;

     

    (viii)                      Any
      (A) fact, circumstance, condition or occurrence at, on, or arising from, any
      Site, improvements, or other Property related to the Existing Pipeline or the
      Project that results in material noncompliance with any Environmental Law or
      any
      release of Hazardous Materials on or from such Site, improvements or other
      Property related to the Existing Pipeline or the Project that has had or could
      reasonably be expected to result in a Material Adverse Change, and (B) pending
      or, to the Borrower’s knowledge, threatened, claim under or related to
      Environmental Laws, against the Borrower or any of its Subsidiaries or, to
      the
      Borrower’s knowledge, any of its Affiliates, contractors, lessees or any other
      Persons, arising in connection with their occupying or conducting operations
      on
      or at the Existing Pipeline or the Project or any related Site, improvements
      or
      other Property that has had or could reasonably be expected to result in a
      Material Adverse Change; and

     

    (ix)           Initiation
      of any condemnation proceedings against the Existing Pipeline or the Project
      or
      the related Site or a material portion thereof.

     

    Notwithstanding
      the foregoing or anything to the contrary contained in this Agreement, Borrower
      shall not be required to provide further notices to the Administrative Agent
      of
      the proceedings between Borrower and the Florida Department of Transportation,
      which matters have been disclosed prior to the Closing Date by Borrower to
      the
      Administrative Agent.  Such matters, to the extent required by
      Applicable Law, will be included in the public reports filed with the SEC by
      Southern Union Company.

     

    
      
              

                            
                          
      

                  
      
      

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    (h)           Books,
      Records. Maintain, or cause to be maintained, adequate books, accounts and
      records and prepare all financial statements required hereunder in accordance
      with GAAP and in compliance in all material respects with the regulations of
      any
      Governmental Authority having jurisdiction thereof, and, subject to requirements
      of Governmental Rules and safety requirements.

     

    (i)           Compliance
      with Laws, Instruments, Etc. Promptly comply, or cause compliance, in all
      material respects, with all Legal Requirements relating to the Borrower, any
      of
      its Subsidiaries, the Existing Pipeline or the Project, including Legal
      Requirements relating to pollution control, environmental protection, equal
      employment opportunity or employee benefit plans, ERISA Plans and employee
      safety, with respect to the Borrower, its Subsidiaries, the Existing Pipeline
      and the Project.

     

    (j)           Reports.

     

    (i)
      Until
      the Project Completion Date, deliver to the Administrative Agent (A) within
      thirty (30) days of the end of each month a report describing in reasonable
      detail the progress of the construction of the Project since the last prior
      report hereunder, and (B) within thirty (30) days of the end of each Fiscal
      Quarter, an updated Project Budget and Project Schedule.

     

    (ii)
      Until the Project Completion Date, to the extent reasonably available to the
      Borrower or any of its Subsidiaries, provide to the Administrative Agent
      (subject to Section 5.03 hereof), all material reports, analyses and/or
      assessments of the Project, and all material amendments, modifications and
      supplements thereto, including, without limitation, material reports, analyses
      or assessments prepared by any independent engineer, market consultant,
      environmental consultant or insurance consultant, and copies of all such
      material reports, analyses and assessments, and any material amendments,
      modifications and supplements thereto.

     

    (iii)
      To
      the extent reasonably available to the Borrower or any of its Subsidiaries,
      provide to the Administrative Agent promptly upon the Administrative Agent’s
      reasonable request therefor, such reports, statements, lists of property,
      accounts, budgets, forecasts and other information concerning the Existing
      Pipeline, the Project and the Material Facility Parties relating to the Existing
      Pipeline or the Project.

     

    (k)           Conduct
      of Business, Properties, Etc. Except as otherwise expressly permitted under
      this Agreement, (i) maintain and preserve all material rights, privileges and
      franchises reasonably necessary in the normal conduct of its business, (ii)
      perform (to the extent not excused by force majeure events or the nonperformance
      of another party and not subject to a good faith dispute) all of its material
      contractual obligations under the Material Facility Agreements to which it
      is
      party or by which it is bound, and (iii) obtain and maintain all necessary
      Material Applicable Permits and use commercially reasonable efforts to cause
      all
      Material Facility Parties related to the Existing Pipeline and the Project
      to
      obtain and maintain all Material Applicable Permits.

     

    
      
              

                            
                          
      

                  
      
      

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    (l)           Construction
      of the Project. Until the Project Completion Date, acquire in the name of
      the Borrower or FGT adequate interests in real property for the Project to
      be
      constructed and operated in accordance with Prudent Natural Gas Pipeline
      Practices and diligently cause the Project to be constructed and equipped
      substantially in accordance with applicable Legal Requirements, Prudent Natural
      Gas Pipeline Practices, and the Construction Contracts, the Project Budget
      and
      Project Schedule, as such Construction Contracts, Project Budget and Project
      Schedule may be amended from time to time.

     

    (m)           Operation
      .  Operate and maintain the Existing Pipeline and, after the
      Project Completion Date thereof, the Project, cause the same to be operated
      and
      maintained, in a manner consistent and in compliance with Prudent Natural Gas
      Pipeline Practices and in all material respects with all applicable Legal
      Requirements.

     

    (n)           Further
      Assurances.  Perform, upon the request of the Administrative
      Agent, such reasonable acts as may be necessary to carry out the intent of
      this
      Agreement and the other Loan Documents.

     

    (o)           Taxes
      and Other Government Charges. Pay, or cause to be paid, as and when due and
      prior to delinquency, all material taxes, assessments and governmental charges
      of any kind that may at any time be lawfully assessed or levied against or
      with
      respect to the Borrower, any of its Subsidiaries, the Existing Pipeline or
      the
      Project, including sales and use taxes and real estate taxes, all other charges
      incurred in the operation, maintenance, use, occupancy and upkeep of the
      Existing Pipeline and the Project, and all assessments and charges lawfully
      made
      by any Governmental Authority for public improvements that may be secured by
      a
      Lien on the Existing Pipeline or the Project. The Borrower or any of its
      Subsidiaries may contest in good faith any such taxes, assessments and other
      charges and, in such event, may permit the taxes, assessments or other charges
      so contested to remain unpaid during any period, including appeals, when the
      Borrower or any of its Subsidiaries is in good faith contesting the same, so
      long as (i) reserves have been established in an amount sufficient to pay any
      such taxes, assessments or other charges, accrued interest thereon and potential
      penalties or other costs relating thereto, or, to the extent permitted by GAAP,
      other adequate provision for the payment hereof shall have been made, (ii)
      enforcement of the contested tax, assessment or other charge is effectively
      stayed for the entire duration of such contest, and (iii) any tax, assessment
      or
      other charge determined to be due, together with any interest or penalties
      thereon, is timely paid after resolution of such contest.

     

    (p)           Event
      of Eminent Domain. If an Event of Eminent Domain shall occur with respect to
      any portion of the Existing Pipeline or the Project, (i) promptly upon discovery
      or receipt of notice of any such occurrence, provide written notice of the
      same
      to the Administrative Agent, and (ii) diligently pursue all its rights to
      compensation against the relevant Governmental Authority in respect of such
      Event of Eminent Domain, except where the failure to pursue its rights to
      compensation in respect of such Event of Eminent Domain does not or could not
      reasonably be expected to result in a Material Adverse Change.

     

    (q)           Other
      Indebtedness.  The Borrower shall ensure that at all times the
      Loan ranks at least pari passu in respect of priority of payment and priority
      of
      Liens with all other senior indebtedness of the Borrower.

     

    
      
              

                            
                          
      

                  
      
      

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    (r)           FGT
      Distributions.  The Borrower shall cause FGT to declare
      distributions at the earliest time permitted under Applicable Law and the FGT
      Debt Agreements, in each case as such agreements exist on the Closing Date
      or as
      the same may be amended in compliance with this Agreement, and any other
      agreement evidencing Indebtedness of FGT which is entered into in compliance
      with the provisions of this Agreement, to the extent necessary (after taking
      into account all other sources of funds available to the Borrower) to cause
      and
      permit the Borrower to pay its Indebtedness as the same becomes due and payable;
      provided, however, that notwithstanding the foregoing, the Borrower shall not
      be
      required to cause FGT to declare distributions in the event that such
      distributions would materially impair FGT’s ability to operate in the ordinary
      course or would reasonably be likely to have a material adverse effect on the
      financial condition of FGT.

     

    SECTION
      5.02.  Negative Covenants.  The Borrower
      covenants and agrees that so long as any Obligation remains outstanding or
      any
      Lender shall have any Commitment hereunder, the Borrower shall not, and shall
      not permit any of its Subsidiaries to, unless the Majority Lenders shall
      otherwise consent in writing (it being understood and agreed that each of the
      following covenants shall apply to each Subsidiary of the Borrower, whether
      present or future):

     

    (a)           Indebtedness.  Create,
      assume or otherwise incur or become liable in respect of any Indebtedness (or
      permit any Subsidiary to do so) if, immediately thereafter and after giving
      effect thereto, a Default or an Event of Default shall have occurred and be
      continuing; provided that neither the Borrower nor any of its Subsidiaries
      shall
      incur any Indebtedness owed to any Affiliate of the Borrower that is not fully
      and completely subordinated in all respects to the Obligations pursuant to
      a
      subordination agreement in form and substance satisfactory to the Administrative
      Agent.

     

    (b)           Disposition
      of Assets.  Except as otherwise expressly permitted by this
      Agreement, liquidate or dissolve, sell or lease or otherwise transfer or dispose
      of all or any part of its property, assets or business (including, without
      limitation, any Subsidiary) in any single calendar year having an aggregate
      fair
      market value of more than $50,000,000 or in any period of five (5) consecutive
      calendar years having an aggregate fair market value of more than
      $100,000,000.

     

    (c)           Mergers,
      Etc.  Merge or consolidate with or into, any Person, unless
      (i) the Borrower or such Subsidiary, as applicable, is the survivor and
      (ii) immediately after giving effect to such proposed transaction, no
      Default would exist or result.

     

    (d)           Compliance
      with ERISA.  Terminate, or permit any ERISA Affiliate to
      terminate, any Plan so as to result in any liability in excess of $50,000,000
      of
      the Borrower or any ERISA Affiliate to the PBGC, or permit circumstances which
      give rise to a Termination Event described in clause (b), (d) or (e) of the
      definition of “Termination Event” with respect to a Plan so as to result in any
      liability in excess of $50,000,000 of the Borrower or any ERISA Affiliate to
      the
      PBGC.

     

    (e)           Liens,
      Etc.  Pledge, mortgage or hypothecate, or permit to exist, and/or
      cause, suffer or permit any Subsidiary to pledge, mortgage or hypothecate,
      or
      permit to exist, any Lien upon, any Property at any time owned by it to secure
      any Indebtedness or other obligations,

     

    
      
              

                            
                          
      

                  
      
      

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    without
      making effective provisions whereby all Obligations of the Borrower and FGT
      to
      the Administrative Agent and the Lenders under this Agreement and each of the
      other Loan Documents shall be equally and ratably secured with all such
      Indebtedness or other obligations so secured and with any other Indebtedness
      similarly entitled to be equally and ratably secured; provided,
however, that this restriction shall not apply to or prevent the creation
      or existence of the following (collectively, “Permitted
      Liens”):

     

    (i)           pledges
      or deposits made to secure payment of worker's compensation insurance (or to
      participate in any fund in connection with workers' compensation insurance),
      unemployment insurance, pensions or social security programs,

     

    (ii)           Liens
      imposed by mandatory provisions of Applicable Law such as for materialmen's,
      mechanics', warehousemen's and other like Liens arising in the ordinary course
      of business, securing Indebtedness whose payment is not yet due,

     

    (iii)           Liens
      for taxes, assessments and governmental charges or levies imposed upon a Person
      or such Person's income or profits or Property, if the same are not yet due
      and
      payable or if the same are being contested in good faith and as to which
      adequate cash reserves have been provided,

     

    (iv)           Liens
      arising from good faith deposits in connection with tenders, leases, real estate
      bids or contracts (other than contracts involving the borrowing of money),
      pledges or deposits to secure public or statutory obligations and deposits
      to
      secure (or in lieu of) surety, stay, appeal or custom bonds and deposits to
      secure the payment of taxes, assessments, custom duties or other similar
      charges,

     

    (v)           encumbrances
      consisting of zoning restrictions, easements, or other restrictions on the
      use
      of real property for the purposes intended, and none of which is violated by
      existing or proposed structures or land use,

     

    (vi)           Liens
      existing on property acquired by the Borrower or any of its Subsidiaries at
      the
      time of acquisition, provided that such Liens were not created in contemplation
      of such acquisition and do not extend to any assets other than the property
      so
      acquired; and

     

    (vii)           any
      other Liens (other than the Liens described in clauses (i) through (vi)
      inclusive), if the aggregate amount of all obligations secured by such Liens
      does not exceed $30,000,000 at any one time outstanding.

     

    In
      case
      the Borrower or any of its Subsidiaries shall propose to grant a Lien on any
      property at any time owned by it to secure any Indebtedness or other
      obligations, other than as permitted by clauses (i) to (vii), inclusive, of
      this
      Section 5.02(e), the Borrower will prior thereto give written notice thereof
      to
      the Administrative Agent and the Borrower will, or will cause its Subsidiary
      to,
      prior to or simultaneously with the granting of such Lien, by a mortgage,
      security agreement or pledge agreement executed by the grantor to the
      Administrative Agent for the benefit of the Administrative Agent and the Lenders
      (or to the extent legally necessary to a trustee), in form and substance
      satisfactory to the Administrative Agent, effectively secure all of the
      Obligations with such Indebtedness or other obligations so secured.

     

    
      
              

                            
                          
      

                  
      
      

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    (f)           Investments.  Make
      or permit to exist, or permit any of its Subsidiaries to make or permit to
      exist
      any Investments (including loans to and investment in third parties) other
      than
      as expressly permitted below:

     

    (i)           The
      Borrower may make Permitted Investments which are made in the ordinary course
      of
      business in connection with the Borrower’s cash management practices;
      and

     

    (ii)           As
      long as, after giving effect thereto, no Default or Event of Default has
      occurred and is continuing, the Borrower may make other Investments;
provided that such Investments are in the lines of business permitted
      pursuant to, and subject to the limitations contained in, Section
      5.02(g).

     

    (g)           Line
      of Business.  Engage in a line of business other than the
      ownership and operation of a natural gas pipeline in the United States; provided
      that, so long as after giving effect thereto, no Default or Event of Default
      shall have occurred and be continuing, the Borrower and/or FGT may invest up
      to
      twenty percent (20%) of the Consolidated net tangible assets of the Borrower
      and
      its Subsidiaries in other FERC regulated natural gas businesses that do not
      involve any trading or marketing activities.

     

    (h)           Ownership
      of FGT, Existing Pipeline and the Project.  (i) In the case of the
      Borrower, cause or permit FGT to at any time cease to be directly or indirectly
      a wholly-owned, direct Subsidiary of the Borrower, and (ii) except as set forth
      on Schedule 6, cause or permit FGT to at any time cease to own one hundred
      percent (100%) of the Existing Pipeline and the Project.

     

    (i)           Use
      of Proceeds.  Use all or any portion of the proceeds of the Loan
      for the purpose of purchasing or carrying margin stock within the meaning of
      Regulation U issued by the Federal Reserve Board or for any other purpose except
      as expressly permitted and authorized herein.

     

    (j)           Consolidated
      Debt to Total Capitalization Ratio.  Permit at any time the ratio
      of (i) the Consolidated Debt of the Borrower, to (ii) the Total Capitalization
      of the Borrower, to be more than 0.65 to 1.00.

     

    (k)           Interest
      Coverage Ratio.  Permit at any time the ratio of (a) the
      Consolidated EBITDA of the Borrower, to (ii) the Consolidated Interest Expense
      of the Borrower, to be less than 2.00 to 1.00.

     

    (l)           Affiliate
      Transactions.  Enter into or permit to exist, or permit any of its
      Subsidiaries to enter into or permit to exist, directly or indirectly, any
      transaction or series of transactions with any of their Affiliates unless such
      transaction or series of transactions is on terms no less favorable to the
      Borrower or any Subsidiary, as applicable, than those that could be obtained
      in
      a comparable arm's length transaction with a Person that is not such an
      Affiliate.

     

    (m)           Dividends
      and Distributions.  Make or pay any dividends or distributions to,
      or repay any Indebtedness owed to, any holder of an equity interest in the
      Borrower, or redeem, purchase or otherwise acquire any interest in the Borrower
      held by such Person;

     

    
      
              

                            
                          
      

                  
      
      

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    provided
      that, (i) the Borrower may make or pay any dividend or distribution to, or
      repay
      any Indebtedness owed to, holders of an equity interest in the Borrower if
      such
      dividends or distributions or repayment of Indebtedness is paid with equity
      interests of the Borrower, (ii) after the Funding Date and prior to the Project
      Completion Date, the Borrower may make or pay any dividend or distribution,
      or
      repay any Indebtedness owed, to holders of equity interest in the Borrower
      with
      any Distributable Amounts only if (x) after giving effect thereto, no Default
      or
      Event of Default shall have occurred and be continuing and the Borrower shall
      have provided to the Administrative Agent a certificate of the Borrower, signed
      by a Responsible Officer of the Borrower, to the effect that the Borrower has
      sufficient financial resources available to it (including access to capital
      and
      debt markets, either directly or indirectly through its Affiliates) to
      construct, complete and equip the Project substantially in accordance with
      applicable Legal Requirements, Prudent Natural Gas Pipeline Practices, and
      the
      Construction Contracts, the Project Budget and Project Schedule, as such
      Construction Contracts, Project Budget and Project Schedule may be amended
      from
      time to time, and (y) the holders of such equity interests in the Borrower
      agree
      to contribute equity capital to the Borrower in an equal amount within twelve
      months from the date of such dividend, distribution or repayment, as applicable,
      (iii) prior to the Funding Date and after the Project Completion Date, the
      Borrower may make or pay any other dividend or distribution, or repay any
      Indebtedness owed, to holders of equity interests in the Borrower with any
      Distributable Amounts so long as after giving effect thereto, no Default or
      Event of Default shall have occurred and be continuing, and (iv) and any
      Subsidiary of the Borrower may make or pay any dividend or distribution to
      the
      Borrower.

     

    (n)           Abandonment
      of the Existing Pipeline or the Project.  Cease or abandon the
      development, construction or operation of the Existing Pipeline or the
      Project.

     

    (o)           FGT
      Distributions. Cause or permit FGT to enter into any further agreement
      limiting its ability to pay dividends or make distributions to the Borrower
      on
      terms more restrictive than those contained in the FGT Debt Agreements, in
      each
      case as such agreements exist on the Closing Date.

     

    (p)           Amendment
      of Borrower Debt Agreements and FGT Debt Agreements.  Agree to or
      enter into or otherwise cause or permit any amendment, modification or
      termination of any of the Borrower Debt Agreements or FGT Debt Agreements if
      any
      such amendment, modification or termination will result in a Material Adverse
      Change or otherwise conflict with this Agreement.

     

    SECTION
      5.03.  Disclosure
      Limitations.  Notwithstanding anything to the contrary contained
      in this Agreement or any of the other Loan Documents, neither Borrower nor
      any of its Affiliates, including, without limitation, FGT, shall be required
      to
      provide to Pipeline Funding Company, LLC (or any of its Affiliates), or any
      other Person (or any of its Affiliates) that is a customer of the FERC-regulated
      businesses of Borrower or any of its Subsidiaries, including, without
      limitation, FGT(each such Person, a “Restricted Person”), any information
      (including, without limitation, any contracts between FGT, on the one hand,
      and
      any customers of FGT, on the other hand), to the extent that, in the good faith,
      reasonable determination of the Borrower and its regulatory counsel, such
      disclosure would violate any Applicable Law (including, without limitation,
      the
      Energy Policy Act of 2005, the Natural Gas Act and FERC orders and regulations,
      including FERC standards of conduct) (collectively, the "Disclosure
      Limitations"); provided,

     

    
      
              

                            
                          
      

                  
      
      

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     however,
      that to the extent that the disclosure of such information to a Restricted
      Person would result in a violation of the Disclosure Limitations, in the good
      faith, reasonable determination of Borrower and its regulatory counsel, Borrower
      would agree to provide such information to a third party consultant or other
      designee of the Restricted Person so long as (i) in the good faith, reasonable
      determination of Borrower and its regulatory counsel, such disclosure would
      not
      violate the Disclosure Limitations, and (ii) Borrower receives a confidentiality
      agreement (reasonably acceptable to Borrower in good faith) executed by such
      consultant or designee who will receive such information that is the subject
      of
      such Disclosure Limitations.  If the disclosure to such Restricted
      Person’s consultant or designee may not be made without violating the Disclosure
      Limitations, in the good faith, reasonable determination of Borrower and its
      regulatory counsel, then the Borrower agrees that it will use, or will cause
      its
      Subsidiaries to use, as applicable, commercially reasonable efforts to determine
      an acceptable alternative to achieve the intended objective of the requested
      disclosure.

     

    Notwithstanding
      anything to the
      contrary contained in this Agreement or any of the other Loan Documents,
      Borrower shall not be required to disclose litigation-related information
      (including information prepared in anticipation of litigation) to the
      Administrative Agent, the Lenders or any Eligible Assignee pursuant to Section
      8.06(j) to the extent that Borrower and its counsel reasonably determine in
      good
      faith that the disclosure of such information would result in a waiver of
      Borrower’s attorney-client or work product privileges; it being understood and
      agreed, however, that negotiated agreements and other agreements and
      communications with third parties and notices of the occurrence of any event
      and
      non-privileged information (although there may be other privileged
      communications related to such event or non-privileged information) shall not
      be
      deemed to be privileged communications. 

    

    In
      no
      event, however, shall the Disclosure Limitations or any other provision
      contained in this Section 5.03 be deemed or construed to (i) excuse the Borrower
      from its obligations hereunder to provide notice to the Administrative Agent
      or
      the Lenders of Defaults and Events of Default (whatever the cause), or (ii)
      otherwise limit or preclude the disclosure of any information contemplated
      in
      this Agreement or any of the other Loan Documents (whether pursuant to Section
      8.06(j) or otherwise) to any other Lender that is not a Restricted Person
      subject to the Disclosure Limitations contained herein or the Administrative
      Agent’s or any Lender’s actual or proposed pledgee, assignee, transferee or
      lender(s), or any of their agents, representatives, advisors or trustees
      (including, without limitation, any Person described in clauses (b) through
      (e),
      inclusive, of the definition of “Eligible Assignee”), so long as in any such
      case such Person is not a Restricted Person subject to the Disclosure
      Limitations contained herein, even though the Administrative Agent or the Lender
      making or proposing any such pledge, assignment, transfer, participation or
      financing may be precluded from receiving such information because of the
      Disclosure Limitations contained herein.

    

     

    ARTICLE
      VI

     

    EVENTS
      OF DEFAULT

     

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

     

    
      
              

                            
                          
      

                  
      
      

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    (a)           The
      Borrower shall fail to pay (i) any principal when due and payable hereunder
      or (ii) any interest for more than five days after such interest becomes
      due and payable hereunder or (iii) any other amount (other than principal
      or interest on the Loan) due under any Loan Document for more than 15 days
      after
      such fee or amount becomes due and payable; or

     

    (b)           Any
      representation or warranty made by the Borrower or any Subsidiary of the
      Borrower (or any of their respective officers) under or in connection with
      any
      Loan Document shall prove to have been incorrect in any material respect when
      made or deemed made and the same shall remain unremedied for 30 days after
      a
      Responsible Officer of the Borrower or such Subsidiary becomes aware of such
      event or written notice thereof shall have been given to the Borrower by the
      Administrative Agent at the request of any Lender; or

     

    (c)           The
      Borrower or any of its Subsidiaries shall (i) fail to perform or observe any
      term, covenant or agreement contained in Section 5.02 of this Agreement or
      in
      Article II of the Negative Pledge, or (ii) fail to perform or observe any other
      term, covenant or agreement contained in any Loan Document and which is not
      covered by clause (i) above or any other provision of this
      Section 6.01 if, in the case of such other term, covenant or agreement
      referenced in this clause (ii), such failure shall remain unremedied for 30
      days
      after a Responsible Officer of the Borrower or such Subsidiary becomes aware
      of
      such event or written notice thereof shall have been given to the Borrower
      by
      the Administrative Agent at the request of any Lender; or

     

    (d)           The
      Borrower or any of its Subsidiaries shall fail to pay any principal of or
      premium or interest on any Indebtedness which is outstanding in the principal
      amount of at least $30,000,000 in the aggregate, of the Borrower or such
      Subsidiary (as the case may be), when the same becomes due and payable (whether
      by scheduled maturity, required prepayment, acceleration, demand or otherwise),
      and such failure shall continue after the applicable grace and/or notice period,
      if any, specified in the agreement or instrument relating to such Indebtedness;
      or any other event shall occur or condition shall exist under any agreement
      or
      instrument relating to any such Indebtedness and shall continue after the
      applicable grace and/or notice period, if any, specified in such agreement
      or
      instrument, if the effect of such event or condition is to accelerate, or to
      permit with notice or the passage of time the acceleration of, the maturity
      of
      such Indebtedness; or any such Indebtedness shall be declared to be due and
      payable, or required to be prepaid (other than by a regularly scheduled required
      prepayment or as a result of the giving of notice of a voluntary prepayment),
      prior to the stated maturity thereof; or

     

    (e)           The
      Borrower, FGT or any of the Borrower's Subsidiaries shall generally not pay
      its
      debts as such debts become due, or shall admit in writing its inability to
      pay
      its debts generally, or shall make a general assignment for the benefit of
      creditors; or any proceeding shall be instituted by or against the Borrower,
      FGT
      or any of the Borrower's Subsidiaries seeking to adjudicate it as bankrupt
      or
      insolvent, or seeking liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief or composition of it or its debts under any
      law
      relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee or other similar official for it or for any substantial part of its
      property and, in the case of any such proceeding instituted against it (but
      not
      instituted by it), shall remain undismissed or unstayed for a period of 60
      days;
      or the Borrower, FGT or any of the Borrower's Subsidiaries shall take any
      corporate, limited liability

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    company
      or partnership action to authorize any of the actions set forth above in this
      subsection (e); or

     

    (f)           Any
      judgment, decree or order for the payment of money in excess of $50,000,000,
      individually or in the aggregate, shall be rendered against the Borrower or
      any
      of its Subsidiaries and remains unsatisfied and either (i) enforcement
      proceedings shall have been commenced by any creditor upon such judgment, decree
      or order or (ii) there shall be any period of 60 consecutive days during
      which a stay of enforcement of such judgment, decree or order, by reason of
      a
      pending appeal or otherwise, shall not be in effect; or

     

    (g)           The
      Borrower or any ERISA Affiliate shall have been notified by the sponsor of
      a
      Multiemployer Plan that such Multiemployer Plan is in reorganization or is
      being
      terminated, within the meaning of Title IV of ERISA, if as a result of such
      reorganization or termination the aggregate annual contributions of the Borrower
      and its ERISA Affiliates to all Multiemployer Plans which are then in
      reorganization or being terminated have been or will be increased over the
      amounts contributed to such Multiemployer Plans for the respective plan years
      which include the date hereof by an amount exceeding $50,000,000 in the
      aggregate; or

     

    (h)           The
      Borrower shall fail to own, directly or indirectly, one hundred percent (100%)
      of the voting equity interests of FGT, or, except as may be permitted pursuant
      to Section 5.02(b), FGT shall fail to own one hundred percent (100%) of the
      Project and, except as set forth on Schedule 6, the Existing Pipeline;
      or

     

    (i)           Failure
      of the Borrower and its Subsidiaries to achieve Project Completion in respect
      of
      the Project on or prior to December 31, 2013; or

     

    (j)           Failure
      by the holders of the equity interests in the Borrower to contribute equity
      capital to the Borrower prior to such times and in such amounts required
      pursuant to Section 5.02(m); or

     

    (k)           An
      "Event of Default" (after giving effect to any applicable periods of grace
      or
      notice) shall have occurred under any of the Borrower Debt Agreements or the
      FGT
      Debt Agreements; or

     

    (l)           A
      "Material Adverse Change" shall have occurred and the same shall remain
      unremedied for 30 days after a Responsible Officer of the Borrower or such
      Subsidiary becomes aware of such event or written notice thereof shall have
      been
      given to the Borrower by the Administrative Agent at the request of any
      Lender;

     

    then,
      and
      in any such event, the Administrative Agent may do any of the
      following:

    

    (i)            at
      the request, or may with the consent, of the Majority Lenders, by notice to
      the
      Borrower, declare the obligation of each Lender to make the Loan to be
      terminated, whereupon the same shall forthwith terminate, and/or

    

    (ii)            at
      the request, or may with the consent, of the Majority Lenders, by notice to
      the
      Borrower, recover any outstanding principal of or premium or interest on
      any of the Obligations, and/or

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    (iii)           declare
      all or any portion of the Loan, all interest thereon and all other amounts
      payable under this Agreement and the other Loan Documents to be forthwith due
      and payable, whereupon all or such portion of the Loan, all such interest and
      all such amounts, together with a premium equal to (A) in the case of the
      occurrence of any Event of Default specified in Sections 6.01 (b), (c), (e)
      (to the extent voluntary), (h) or (i), four percent (4%) of the principal
      balance of the Loan so accelerated, and (B) in the case of any other Event
      of
      Default, two percent (2%) of the principal balance of the Loan so accelerated,
      shall become and be forthwith due and payable, in any such case without
      presentment, demand, protest, notice of intent to accelerate or further notice
      of any kind, all of which are hereby expressly waived by the Borrower;
provided, however, that in the event of an actual or deemed entry
      of an order for relief with respect to the Borrower under the Bankruptcy Code,
      (A) the obligation of each Lender to make its Loan shall automatically be
      terminated and (B) the Loan, all such interest, all such amounts, and all
      other Obligations, together with a premium equal to four percent (4%) (to the
      extent voluntary) or two percent (2%) (to the extent involuntary) of the
      principal balance of the Loan, 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, and/or

    

    (iv)            at
      the request, or may with the consent, of the Majority Lenders, by notice to
      the
      Borrower, collect interest at the Default Rate in accordance with Section 2.06,
      and/or

    

    (v)           exercise
      any or all remedies available at law; and/or

    

    (vi)           exercise
      any or all remedies available in equity.

    

    The
      Borrower acknowledges, and the parties hereto agree, that each Lender has the
      right to maintain its investment in the Loan free from prepayment and that,
      as a
      result, the right of acceleration shall not be the sole and exclusive remedy
      available in the event of an Event of Default but rather shall be one of the
      remedies available to the Administrative Agent and the Lenders (which the
      Administrative Agent and the Lenders, in their sole and absolute discretion,
      may
      exercise).  Without limiting the generality of any of the foregoing,
      neither the Administrative Agent nor any Lender shall be subject to any "one
      action" or "election of remedies" law or rule, and all rights, remedies and
      privileges provided to the Administrative Agent and each Lender shall remain
      in
      full force and effect until the Administrative Agent and the Lenders shall
      have
      exhausted all of their remedies.  Any such actions taken by the
      Administrative Agent and/or any of the Lenders either at law or in equity shall
      be cumulative and concurrent and may be pursued independently, singly,
      successively, together or otherwise, at such time and in such order as the
      Administrative Agent and the Majority Lenders may determine in their sole
      discretion, to the fullest extent permitted by law, equity or
      contract.  Without limiting the generality of the foregoing, in the
      event of the occurrence of an Event of Default incurred solely for the purpose
      of intentionally circumventing the Lenders’ right to maintain its investment in
      the Loan free from prepayment, the Borrower acknowledges that monetary damages
      will be inadequate and the Lenders and the Administrative Agent shall be
      entitled to exercise available equitable remedies.

     

    

      
        
                

                              
                            
      

                    
      
      

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    ARTICLE
      VII

    THE
      AGENT

     

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

     

    SECTION
      7.02.  Administrative Agent’s Reliance,
      Etc.  Neither the Administrative Agent nor any of its directors,
      officers, agents or employees shall be liable for any action taken or omitted
      to
      be taken by it or them under or in connection with any Loan Document, except
      for
      its or their own gross negligence or willful misconduct.  The duties
      of the Administrative Agent shall be mechanical and administrative in nature;
      the Administrative Agent shall not have, by reason of this Agreement or any
      other Loan Document, a fiduciary relationship in respect of any Lender or the
      holder of any Note; and nothing in this Agreement or any other Loan Document,
      expressed or implied, is intended or shall be so construed as to impose upon
      the
      Administrative Agent any obligations in respect of this Agreement or any other
      Loan Document except as expressly set forth herein.  Without
      limitation of the generality of the foregoing, the Administrative
      Agent:  (a) may treat the payee of any Note as the holder thereof
      until the Administrative Agent receives written notice of the assignment or
      transfer thereof signed by such payee and in form satisfactory to the
      Administrative Agent; (b) may consult with legal counsel (including counsel
      for the Borrower), 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; (c) makes no warranty or representation to any Lender and shall
      not be responsible to any Lender for any statements, warranties or
      representations made in or in connection with any Loan Document; (d) shall
      not have any duty to ascertain or to inquire as to the performance or observance
      of any of the terms, covenants or conditions of any Loan Document on the part
      of
      the Borrower or to inspect the property (including the books and records) of
      the
      Borrower; (e) shall not be responsible to any Lender for the due execution
      (other than the Administrative Agent’s own due execution), legality, validity,
      enforceability, genuineness, sufficiency or value of any Loan Document or any
      other instrument or document furnished pursuant hereto; and (f) shall incur
      no liability under or in respect of any Loan Document by acting upon any notice,
      consent, certificate or other instrument or writing (which may be by
      telecopier), believed by it to be genuine and signed or sent by the proper
      party
      or parties.

     

    

      
        
                

                              
                            
      

                    
      
      

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    SECTION
      7.03.  Administrative Agent and Its
      Affiliates.  With respect to its Commitment, the Loan made by it
      and the Notes, if any, issued to it, each Lender which is also the
      Administrative Agent shall have the same rights and powers under the Loan
      Documents as any other Lender and may exercise the same as though it were not
      the Administrative Agent; and the term “Lender” or “Lenders” shall, unless
      otherwise expressly indicated, include any Lender serving as the Administrative
      Agent in its individual capacity.  Any Lender serving as the
      Administrative Agent and its Affiliates may accept deposits from, lend money
      to,
      act as trustee under indentures of, and generally engage in any kind of business
      with, the Borrower, any of the Subsidiaries and any Person who may do business
      with or own securities of the Borrower or any Subsidiary, all as if such Lender
      were not the Administrative Agent and without any duty to account therefor
      to
      the Lenders.

     

    SECTION
      7.04.  Lender Credit Decision.  Each Lender
      acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Lender and based on the financial statements
      referred to in Section 4.01(d) and such other documents and information as
      it has deemed appropriate, made its own credit analysis and decision to enter
      into this Agreement.  Each Lender also acknowledges that it will,
      independently and without reliance upon the Administrative Agent or any other
      Lender and based on such documents and information as it shall deem appropriate
      at the time, continue to make its own credit decisions in taking or not taking
      action under this Agreement and the other Loan Documents.  The
      Administrative Agent shall not have any duty or responsibility, either initially
      or on a continuing basis, to provide any Lender or the holder of any Note with
      any credit or other information with respect thereto, whether coming into its
      possession before the making of the Loan or at any time or times
      thereafter.  The Administrative Agent shall not be responsible to any
      Lender or the holder of any Note for any recitals, statements, information,
      representations or warranties herein or in any document, certificate or other
      writing delivered in connection herewith or for the execution, effectiveness,
      genuineness, validity, enforceability, collectability, priority or sufficiency
      of this Agreement or any other Loan Document or the financial condition of
      the
      Borrower or any Subsidiary or be required to make any inquiry concerning either
      the performance or observance of any of the terms, provisions or conditions
      of
      this Agreement or any other Loan Document, or the financial condition of the
      Borrower or any Subsidiary or the existence or possible existence of any
      Default.

     

    SECTION
      7.05.  Certain Rights of the Administrative
      Agent.  The Administrative Agent shall request instructions from
      the Majority 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 shall be entitled to refrain from such act or taking such
      action unless and until the Administrative Agent shall have received
      instructions from Majority Lenders; and it shall not incur liability to any
      Person by reason of so refraining.  Without limiting the foregoing, no
      Lender or the holder of any Note shall have any right of action whatsoever
      against the Administrative Agent as a result of its acting or refraining from
      acting hereunder or under any other Loan Document in accordance with the
      instructions of the Majority Lenders or all of the Lenders, as the case may
      be.  Furthermore, except for action expressly required of the
      Administrative Agent hereunder, the Administrative Agent shall in all cases
      be
      fully justified in failing or refusing to act hereunder unless it shall be
      specifically indemnified to its satisfaction by the Lenders against any and
      all
      liability and expense which may be incurred by it by reason of taking or
      continuing to take any such action.

     

    

      
        
                

                              
                            
      

                    
      
      

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    SECTION
      7.06.  Holders.  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 indorsee, as the case may
      be,
      of such Note or of any Note or Notes issued in exchange therefor.

     

    SECTION
      7.07.  Indemnification.  The Lenders agree
      to indemnify the Administrative Agent (to the extent not reimbursed by the
      Borrower), ratably according to the respective principal amounts of the Loan
      then held by each of them (or if no principal of the Loan is at the time
      outstanding or if any principal of the Loan is held by Persons who are not
      Lenders, ratably according to the respective amounts of their Commitments then
      existing, or, if no such principal amounts are then outstanding and no
      Commitments are then existing, ratably according to the respective amounts
      of
      the Commitments existing immediately prior to the termination thereof), from
      and
      against any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, expenses or disbursements of any kind or
      nature whatsoever which may be imposed on, incurred by, or asserted against
      the
      Administrative Agent in any way relating to or arising out of any of the Loan
      Documents or any action taken or omitted by such Administrative Agent under
      the
      Loan Documents; provided 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 the Administrative Agent's
      gross
      negligence or willful misconduct.  Without limitation of the
      foregoing, each Lender agrees to reimburse the Administrative Agent promptly
      upon demand for such Lender's ratable share of any reasonable out-of-pocket
      expenses (including reasonable counsel fees) incurred by the Administrative
      Agent in connection with the preparation, execution, delivery, administration,
      modification, amendment or enforcement (whether through negotiations, legal
      proceedings or otherwise) of, or legal advice in respect of rights or
      responsibilities under, the Loan Documents, or any of them, to the extent that
      such Administrative Agent is not reimbursed for such expenses by the
      Borrower.

     

    SECTION
      7.08.  Resignation or Removal of the Administrative Agent
.

     

    (a)           The
      Administrative Agent may resign from the performance of all its respective
      functions and duties hereunder and under the other Loan Documents at any time
      by
      giving at least sixty (60) days’ prior written notice to the Borrower and the
      Lenders.  Additionally, the Administrative Agent may be removed at the
      discretion of the Majority Lenders by giving at least sixty (60) days’ prior
      written notice to the Administrative Agent, the Borrower and the
      Lenders.  Such resignation or removal shall take effect upon the
      appointment of a successor Administrative Agent pursuant to Section 7.08(b)
      and
      Section 7.08(c) or as otherwise provided below.

     

    (b)           Upon
      any such notice of resignation or removal, the Majority Lenders shall have
      the
      right to appoint a successor Administrative Agent which shall be another Lender,
      or if none is amenable to such appointment, a commercial bank or trust company
      experienced in the administration of loans such as the Loan and, so long as
      no
      Default or Event of Default shall have occurred and be continuing, otherwise
      reasonably acceptable to the Borrower.

     

    (c)           If
      a successor to a resigning Administrative Agent shall not have been so appointed
      within such sixty (60) day period, the resigning Administrative Agent with
      the
      consent of the Borrower (which consent will not be unreasonably withheld),
      shall
      have the right to then

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    appoint
      a
      successor Administrative Agent who shall serve as Administrative Agent until
      such time, if any, as the Majority Lenders appoint a successor Administrative
      Agent as provided above.

     

    (d)           If
      no successor Administrative Agent has been appointed pursuant to Section 7.08(b)
      or Section 7.08(c) and shall have accepted such appointment by the 70th day after
      the date
      such notice of resignation or removal was given by the resigning Administrative
      Agent or the Majority Lenders, as the case may be, the resigning Administrative
      Agent’s resignation shall become effective and the Lenders shall thereafter
      perform all the duties of the resigning Administrative Agent hereunder and
      under
      any other Loan Document until such time, if any, as the Majority Lenders appoint
      a successor Administrative Agent as provided above.

     

    (e)           After
      any retiring Administrative Agent’s resignation or removal hereunder as
      Administrative Agent the provisions of this Article VII shall inure to its
      benefit as to any actions taken or omitted to be taken by it while it was
      Administrative Agent under this Agreement and the other Loan
      Documents.  Upon the acceptance of any appointment as Administrative
      Agent by a successor Administrative Agent, such successor Administrative Agent
      shall thereupon 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.

     

    

      
        
                

                              
                            
      

                    
      
      

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    ARTICLE
      VIII

    MISCELLANEOUS

     

    SECTION
      8.01.  Amendments, Etc.  No amendment or
      waiver of any provision of any Loan Document, nor consent to any departure
      by
      the Borrower therefrom, shall in any event be effective unless the same shall
      be
      in writing and signed by the Majority Lenders, and then such waiver or consent
      shall be effective only in the specific instance and for the specific purpose
      for which given; provided, however, that no amendment, waiver or consent shall,
      unless in writing and signed by all the Lenders, do any of the
      following:  (a) waive any of the conditions specified in Article
      III (it being understood and agreed that the conditions contained in Article
      III
      are for the benefit of the Lenders only and, accordingly, the Borrower shall
      have no right to waive such conditions or to insist that any Lender waive or
      not
      waive any of the conditions contained in Article III, which right to waive
      or
      not waive shall be exercisable by the Lenders in their sole and absolute
      discretion), (b) increase or extend the Commitments of the Lenders or
      subject the Lenders to any additional obligations, (c) forgive or reduce
      the principal of, or interest on, the Loan or any other amounts payable
      hereunder, (d) postpone any date fixed for any payment of principal of, or
      interest on, the Loan or any other amounts payable hereunder, (e) take any
      action which requires the signing of all the Lenders pursuant to the terms
      of
      any Loan Document, (f) change the percentage of the Commitments or of the
      aggregate unpaid principal amount of the Loan which shall be required for the
      Lenders or any of them to take any action under any Loan Document, (g) amend
      the
      definition of "Event of Default", or (h) amend this Section 8.01; and
      provided, further, that no amendment, waiver or consent shall, unless in writing
      and signed by the Administrative Agent in addition to the Lenders required
      above
      to take such action, affect the rights or duties of the Administrative Agent
      under any Loan Document.

     

    SECTION
      8.02.  Notices, Etc.  All notices and other
      communications provided for hereunder shall be (except to the extent telephone
      notice is expressly authorized or required herein) in writing (including
      facsimile transmission communication) and mailed, telecopied or delivered,
      if to
      the Borrower, at its address or telecopy number set forth below:

     

    c/o
      Florida Gas Transmission Company, LLC

    5444
      Westheimer Road

    Houston,
      Texas 77056

    Attention:  Vice
      President & Treasurer

    Telecopier
      No.: (713) 989-1212

     

    if
      to any
      Lender, at its address set forth on its signature page hereto; if to the
      Administrative Agent, at its address or telecopier number set forth
      below:

     

     

    

      
        
                

                              
                            
      

                    
      
      

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      Pipeline Funding Company, LLC

    
      	
               

            	
              4005
                Kennett Pike - Suite 220

            

    

    
      	
               

            	
              Greenville,
                Delaware 19807

            

    

    
      	
               

            	
              Attention:  Barbara
                Morris, President

            

    

    
      	
               

            	
              Telephone:
                (302) 421-2287

            

    

    
      	
               

            	
              Telecopier
                No.: (302) 421-2245

            

    

     

    or,
      as to
      the Borrower, the Administrative Agent, at such other address as shall be
      designated by such party in a written notice to the other parties and, as to
      each other party, at such other address as shall be designated by such party
      in
      a written notice to the Borrower and the Administrative Agent.  All
      such notices and communications shall be effective, if mailed, two Business
      Days
      after deposit in the mails; if sent by overnight courier, one Business Day
      after
      delivery to the courier company; and if sent by telecopier, when received by
      the
      receiving telecopier equipment, respectively; provided, however,
      that (a) notices and communications to the Administrative Agent shall not
      be effective until received by the Administrative Agent and (b) telecopied
      notices received by any party after its normal business hours (or on a day
      other
      than a Business Day) shall be effective on the next Business Day.

     

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

     

    SECTION
      8.04.  Costs, Expenses and Indemnity.

     

    (a)           Expenses.  The
      Borrower agrees to pay on demand, (i) all reasonable costs and expenses in
      connection with the preparation, execution and delivery of the Loan Documents
      and the other documents to be delivered under the Loan Documents, including,
      without limitation, the reasonable fees and out-of-pocket expenses of one law
      firm as counsel for the Administrative Agent with respect to preparation,
      execution and delivery of the Loan Documents and the satisfaction of the matters
      referred to in Section 3.01, which (x) on or prior to the Closing Date
      shall not exceed $250,000, and (y) after the Closing Date and on or prior to
      the
      Funding Date shall not exceed $62,500, and (ii) all reasonable legal and
      other costs and expenses, if any, of the Administrative Agent and each Lender
      in
      connection with the administration, modification, amendment and enforcement
      (whether through negotiations, legal proceedings or otherwise) of the Loan
      Documents and the other documents to be delivered under the Loan Documents
      or
      incurred in connection with any workout, restructuring or
      bankruptcy.

     

    (b)           Indemnity.  The
      Borrower shall, to the fullest extent permitted by Applicable Law, indemnify
      and
      hold harmless the Administrative Agent, each Lender, and each of their
      respective Affiliates and any officers, directors, employees and agents of
      the
      Administrative Agent, any Lender or any of their respective Affiliates
      (collectively the “Indemnified Parties”) from and against any and all
      losses, claims, damages, liabilities, related reasonable costs and expenses
      (including reasonable fees, expenses and disbursements of any

     

    

      
        
                

                              
                            
      

                    
      
      

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     law
      firm or other external counsel) to which any such Indemnified Party may become
      subject arising out of or in connection with (i) the execution, delivery,
      enforcement or performance of this Agreement or any other Loan Document or
      any
      other agreement, letter or instrument delivered pursuant to the Loan Documents
      in connection with the transactions contemplated thereby or the consummation
      of
      the transactions contemplated thereby, (ii) any Commitment or Loan or the use
      or
      proposed use of the proceeds therefrom, or (iii) any liability imposed on an
      Indemnified Party under any Environmental Law as a result of or in connection
      with such Indemnified Party being a Lender, the Administrative Agent or an
      Affiliate of a Lender or the Administrative Agent, regardless of whether any
      Indemnified Party is a party thereto.  The foregoing indemnity will
      not, as to any Indemnified Party, apply to losses, claims, damages, liabilities
      or related expenses to the extent they are found by a final, non-appealable
      judgment of a court of competent jurisdiction to arise from the willful
      misconduct, bad faith or gross negligence of such Indemnified
      Party.  No Indemnified Party shall be liable for any indirect or
      consequential damages in connection with its activities related to this
      Agreement, any other Loan Document or any of the transactions contemplated
      hereby.  Each Indemnified Party shall agree (or, if not a party
      hereto, shall agree as a condition precedent to obtaining the benefits of this
      indemnity) that it shall promptly notify the Borrower of each claim for
      indemnity hereunder.  Any Indemnified Party that proposes to settle or
      compromise any indemnified claim for which the Borrower may be liable for
      payment hereunder shall give the Borrower written notice of the terms of such
      proposed settlement or compromise reasonably in advance of settling or
      compromising such claim or proceeding and shall obtain the Borrower's prior
      written consent thereto, which consent shall not be unreasonably withheld;
      provided that nothing in this sentence shall restrict the right of any
      Indemnified Party to settle or compromise any claim for which indemnity would
      otherwise be available on any terms if such Indemnified Party waives its right
      to indemnity from the Borrower in respect thereof.  The agreements in
      this Section shall survive in accordance with Section 8.11.

     

    (c)           Punitive
      Damages.  Except as set forth in the next succeeding sentence,
      neither the Administrative Agent nor any Lender shall be liable to the Borrower
      for amounts constituting punitive, treble or exemplary damages arising out
      of or
      in connection with any breach by any Lender or the Administrative Agent of
      any
      of their respective obligations hereunder.  If the Borrower becomes
      liable to an unaffiliated third party for amounts constituting punitive, treble
      or exemplary damages as a result of a breach of an obligation hereunder (but
      excluding the exercise of any rights hereunder or under the other Loan
      Documents) by a Lender or the Administrative Agent, as the case may be, the
      Borrower shall be entitled to claim and recover (and does not waive its rights
      to claim and recover) such amounts from such Lender or the Administrative Agent,
      as the case may be, to the extent such Lender or the Administrative Agent,
      as
      the case may be, would be liable to the Borrower for such amounts but for the
      limitation set forth in the preceding sentence.

     

    SECTION
      8.05.  Right of Set-Off.  Upon (a) the
      occurrence and during the continuance of any Event of Default and (b) the
      making of the request or the granting of the consent specified by
      Section 6.01 to authorize the Administrative Agent to declare the Loan due
      and payable pursuant to the provisions of Section 6.01, each Lender is
      hereby authorized at any time and from time to time, to the fullest extent
      permitted by Applicable 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 to or for the credit or the
      account of the

     

    

      
        
                

                              
                            
      

                    
      
      

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    Borrower
      against any and all of the Obligations now or hereafter existing under this
      Agreement and the Notes held by such Lender, irrespective of whether or not
      such
      Lender shall have made any demand under this Agreement or such Notes and
      although such Obligations may be unmatured.  For avoidance of doubt,
      nothing herein shall be deemed or construed to permit any Lender to set off
      any
      contractual obligations that may be owed by any Affiliate of such Lender to
      the
      Borrower or any of its Subsidiaries to any Obligations owed to such Lender
      hereunder or under any of the other Loan Documents.  Each Lender
      agrees promptly to notify the Borrower after any such set-off and application
      made by such Lender; provided that the failure to give such notice shall not
      affect the validity of such set-off and application.  The rights of
      each Lender under this Section 8.05 are in addition to other rights and
      remedies (including, without limitation, other rights of set-off) which such
      Lender may have.

     

     

     

    SECTION
      8.06.  Binding Effect; Assignments;
      Participations.

     

    (a)           This
      Agreement shall become effective on the Closing Date if this Agreement shall
      have been executed by the Borrower and the Administrative Agent and if the
      Administrative Agent shall have, as to each Lender, either received a copy
      of a
      signature page hereof executed by such Lender or been notified by such Lender
      that such Lender has executed it and thereafter shall be binding upon and inure
      to the benefit of and be enforceable by the Borrower, the Administrative Agent
      and each Lender and their respective successors and assigns, except that neither
      the Borrower nor any of its Subsidiaries shall have the right to assign or
      transfer any of its respective rights or obligations hereunder or under any
      of
      the other Loan Documents or any interest herein or therein without the prior
      written consent of all of the Lenders.

     

    (b)           Each
      Lender may, in accordance with Applicable Law, assign to one or more banks
      or
      other Persons all or a portion of its rights and obligations under this
      Agreement (including all or a portion of its Commitments, the Loan owing to
      it,
      and the Note, if any, held by it); provided, however, that
      (i) each such assignment shall be to an Eligible Assignee, and (ii) the
      parties to each such assignment shall execute and deliver to the Administrative
      Agent, for acceptance by the Administrative Agent and recording by the
      Administrative Agent in the Register, an Assignment and Acceptance, together
      with any Note, if any, then held by such assigning Lender and any Note then
      held
      by such assignee; and providedfurther, that prior to the
      occurrence of the Project Completion Date and so long as no Default or Event
      of
      Default shall have occurred and be continuing, no Lender shall assign any
      portion of its obligation to fund the Construction Loan to any entity that
      is
      not an Affiliate of any Lender without the prior written consent of the Borrower
      (which consent shall not be unreasonably conditioned, withheld or delayed).
      Upon
      such execution, delivery, acceptance and recording, from and after the effective
      date specified in each Assignment and Acceptance, (x) the assignee thereunder
      shall be a party hereto and, to the extent that rights and obligations hereunder
      have been assigned to it pursuant to such Assignment and Acceptance, have the
      rights and obligations of a Lender hereunder, (y) the Lender assignor thereunder
      shall, to the extent that rights and obligations hereunder have been assigned
      by
      it pursuant to such Assignment and Acceptance, relinquish its rights and be
      released from its obligations under this Agreement (and, in the case of an
      Assignment and Acceptance covering all of an assigning Lender’s rights and
      obligations under this Agreement, such Lender shall cease to be a party hereto
      except that the rights under Sections 2.09 and 8.04 of such Lender shall
      continue with respect to events and occurrences occurring before or

     

    

      
        
                

                              
                            
      

                    
      
      

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    concurrently
      with its ceasing to be a party hereto), and (z) unless the Borrower in its
      sole
      discretion otherwise consents, no such assignee shall be entitled to receive
      any
      greater payment pursuant to Sections 2.09 than the assigning Lender would
      have been entitled to receive with respect to the rights assigned to such
      assignee, except as a result of circumstances arising after the date of such
      assignment.

     

    (c)           By
      executing and delivering an Assignment and Acceptance, the Lender assignor
      thereunder and the assignee thereunder confirm to and agree with each other
      and
      the other parties hereto as follows:  (i) other than as provided
      in such Assignment and Acceptance, such assigning Lender makes no representation
      or warranty and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with any Loan Document
      or
      any other instrument or document furnished pursuant hereto or in connection
      herewith or the execution, legality, validity, enforceability, genuineness,
      sufficiency or value of any Loan Document or any other instrument or document
      furnished pursuant hereto or in connection herewith; (ii) such assigning Lender
      makes no representation or warranty and assumes no responsibility with respect
      to the financial condition of the Borrower or any other Person or the
      performance or observance by the Borrower or any other Person of any of its
      respective obligations under any Loan Document or any other instrument or
      document furnished pursuant hereto or in connection herewith; (iii) such
      assignee confirms that it has received a copy of this Agreement, together with
      copies of the financial statements referred to in Section 4.01(d) and such
      other
      documents and information as it has deemed appropriate to make its own credit
      analysis and decision to enter into such Assignment and Acceptance; (iv) such
      assignee will, independently and without reliance upon the Administrative Agent,
      such assigning Lender or any other Lender and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit decisions in taking or not taking action under this Agreement, any of
      the
      other Loan Documents or any other instrument or document; (v) such assignee
      confirms that it is an Eligible Assignee; (vi) such assignee appoints and
      authorizes the Administrative Agent to take such action as Administrative Agent
      on its behalf and to exercise such powers and discretion under the Loan
      Documents as are delegated to the Administrative Agent by the terms hereof
      or
      thereof, together with such powers and discretion as are reasonably incidental
      thereto; and (vii) such assignee agrees that it will perform in accordance
      with
      their terms all of the obligations which by the terms of this Agreement are
      required to be performed by it as a Lender.

     

    (d)           The
      Administrative Agent shall maintain at its address referred to in Section 8.02
      a
      copy of each Assignment and Acceptance delivered to and accepted by it and
      a
      register for the recordation of the names and addresses of the Lenders and
      the
      Commitment of, and the principal amount of the Loan owing to, each Lender from
      time to time (the “Register”).  The entries in the Register
      shall be conclusive and binding for all purposes, absent manifest error, and
      the
      Borrower, the Administrative Agent and the Lenders may treat each Person whose
      name is recorded in the Register as a Lender hereunder for all purposes of
      this
      Agreement.  The Register shall be available for inspection by the
      Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (e)           Upon
      its receipt of an Assignment and Acceptance executed by an assigning Lender
      and
      an assignee representing that it is an Eligible Assignee, together with any
      Note
      then held by such assigning Lender and any Note then held by such assignee,
      the

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    Administrative
      Agent shall, if such Assignment and Acceptance has been completed and is in
      substantially the form of Exhibit C, (i) accept such Assignment and Acceptance,
      (ii) record the information contained therein in the Register and (iii) give
      prompt notice thereof to the Borrower.  At the request of the Eligible
      Assignee, within five (5) Business Days after its receipt of such notice, an
      authorized officer of the Borrower, upon surrender and cancellation of the
      old
      Note, shall execute and deliver to the Administrative Agent, at no cost to
      the
      Borrower, a new Note payable to the order of such Eligible Assignee in an amount
      equal to its Commitment after giving effect to such Assignment and Acceptance
      and if the assigning Lender has retained a Commitment hereunder, then at its
      request, upon surrender and cancellation of the old Note, a new Note payable
      to
      the order of such assigning Lender in an amount equal to the Commitment retained
      by it hereunder (such new Notes shall be dated the effective date of such
      Assignment and Acceptance, shall be properly completed and shall otherwise
      be in
      substantially the form of Exhibit A).

     

    (f)           Each
      Lender, in accordance with Applicable Law, may sell participations to one or
      more banks or other entities (other than the Borrower or any of its Affiliates)
      in or to all or a portion of its rights and obligations under this Agreement
      (including all or a portion of its Commitments, the Loan owing to it, and the
      Note, if any, held by it); provided, however, that (i) such
      Lender’s obligations under this Agreement (including its Commitment to the
      Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely
      responsible to the other parties hereto for the performance of such obligations,
      (iii) such Lender shall remain the holder of any such Notes for all purposes
      of
      this Agreement, (iv) the Borrower, the Administrative Agent, and the other
      Lenders shall continue to deal solely and directly with such Lender in
      connection with such Lender’s rights and obligations under this Agreement, (v)
      the terms of any such participation shall not restrict such Lender’s ability to
      make any amendment or waiver of this Agreement or any Note or such Lender’s
      ability to consent to any departure by the Borrower therefrom without the
      approval of the participant, except that the approval of the participant may
      be
      required to the extent that such amendment, waiver or consent would (A) reduce
      the principal of, or interest on, the Loan or any fees or other amounts payable
      hereunder, in each case to the extent subject to such participation, (B)
      postpone any date fixed for any payment of principal of, or interest on, the
      Loan or any fees or other amounts payable hereunder, or (C) increase the amount
      of such Lender’s Commitment, in each case to the extent subject to such
      participation, and (vi) unless the Borrower in its sole discretion otherwise
      consents, no such participant shall be entitled to receive any greater payment
      pursuant to Section 2.09 than such Lender would have been entitled to receive
      with respect to the rights assigned to such participant by such Lender except
      as
      a result of circumstances arising after the date of such participation to the
      extent that such circumstances affect other Lenders and participants generally,
      and (vii) each participant that is not a United States person (as such term
      is
      defined in Section 7701(a)(30) of the Code) shall provide to the Administrative
      Agent and the Borrower a U.S. Internal Revenue Service Form W-8BEN or W-8ECI,
      as
      appropriate, or any successor form prescribed by the U.S. Internal Revenue
      Service, duly completed and certifying that such participant is fully exempt
      from United States withholding taxes with respect to all payments to be made
      to
      such participant under such participation agreement, or other documents
      satisfactory to the Borrower and the Administrative Agent indicating that all
      payments to be made to such participant under such participation agreement
      are
      fully exempt from such withholding taxes, and neither the Borrower nor the
      Administrative Agent shall have any obligation to pay to any participant any
      taxes, penalties, interest or other expenses, costs and losses incurred or
      payable by the Borrower or the

     

     

    

      
        
                

                              
                            
      

                    
      
      

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     Administrative
      Agent as a result of the failure of such participant to obtain such additional
      duly completed and signed copies of one or the other of such forms (or such
      successor forms as shall be adopted from time to time by the relevant United
      States taxing authorities) as may be required under then-current United States
      law or regulations to avoid United States withholding taxes on payments in
      respect of all amounts to be received by such participant.

     

    (g)           Any
      Lender may, in connection with any assignment, transfer, participation, pledge
      or financing or proposed assignment, transfer, participation, pledge or
      financing pursuant to this Section 8.06, disclose to the assignee, transferee,
      participant, pledgee or lender or proposed assignee, transferee, participant,
      pledgee or lender any information relating to the Borrower or any of its
      Affiliates furnished to such Lender by or on behalf of the Borrower or any
      of
      its Affiliates; provided, that, prior to any such disclosure, the
      assignee, transferee, participant, pledgee or lender or proposed assignee,
      transferee, participant, pledgee or lender shall agree to comply with
      Section 8.09.

     

    (h)           Notwithstanding
      any other provision set forth in this Agreement, any Lender may at any time
      create a security interest in all or any portion of its rights under this
      Agreement (including the Loan owing to it and the Note held by it) in favor
      of
      any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve
      Board.

     

    (i)           (i)           Notwithstanding
      any other provision set forth in this Agreement, any Lender may at any time, without approval of
      the
      Borrower or any of its Subsidiaries, by security, charge or otherwise, encumber
      its interest under this Agreement and the other Loan Documents in favor of
      one
      or more Eligible Assignees, their trustees and/or agents, for the purposes
      of
      financing all or any portion of the Loan made by it hereunder.

     

    (ii)           Promptly
      after making such encumbrance or financing, such Lender shall notify the
      Borrower in writing of the name, address, and telephone and facsimile numbers
      of
      each lender to which such Lender’s interest under this Agreement has been
      encumbered or who otherwise has provided such financing. Such notice shall
      include the names of the account managers or other representatives of the
      lenders to whom all written and telephonic communications may be
      addressed.

     

    (iii)
      After giving the Borrower such initial notice, such Lender shall promptly give
      the Borrower notice of any change in the information provided in the initial
      notice or any revised notice.

     

    (iv)           If
      any Lender encumbers its interest under this Agreement as permitted by this
      Section 8.06(i) or otherwise finances all or any portion of the Loan made by
      it
      with a Person that qualifies as an Eligible Assignee, the following provisions
      shall apply:

     

    (A)
      The
      parties hereto, except as provided by the terms of this Agreement, shall not
      modify or cancel this Agreement without the prior written consent of the lenders
      to whom such encumbrance is given or who otherwise provide such
      financing;

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    (B)
      The
      Borrower and its Subsidiaries shall upon request by such Lender execute (1)
      statements certifying that this Agreement is unmodified (or, modified and
      stating the nature of the modification), in full force and effect and the
      absence or existence (and the nature thereof) of Events of Default hereunder
      by
      any of the parties hereunder and (2) documents of consent (each, a “Consent”) to
      such encumbrance and any assignment to such the lenders to whom such encumbrance
      is given or who otherwise provide such financing; provided that the reasonable
      third-party costs and expenses incurred by the Borrower or any of its
      Subsidiaries in connection with any such request shall be borne by the Lender
      or
      Lenders making such request; and

     

    (C)
      Upon
      the receipt of a written request from such Lender or any lender to whom such
      encumbrance is given or who otherwise provides such financing, the Borrower
      and
      its Subsidiaries shall execute, or arrange for the delivery of, such
      certificates, opinions (including, without limitation, opinions regarding the
      enforceability as against the Borrower of any Consent given by the Borrower
      hereunder) and other documents as may be reasonably necessary in order for
      such
      Lender to consummate any financing or refinancing of its investment in the
      Loan
      made by it hereunder or any part thereof and will enter into reasonable
      agreements with such lenders to whom such encumbrance is given or who otherwise
      provide such financing, which agreements will grant certain rights to such
      lenders as more fully developed and described in such documents, including
      (1)
      this Agreement shall not be terminated (except for termination pursuant to
      the
      terms of this Agreement) without the consent of such lender, which consent
      is
      not to be unreasonably withheld or delayed, (2) such lenders shall be given
      notice of, and the opportunity to cure any breach or default of this Agreement
      by the assigning Lender, (3) that if any lender to whom such encumbrance is
      given exercises its remedies pursuant to any security documents, then (x) the
      Borrower and each of its Subsidiaries shall, at such lender’s request, continue
      to perform all of its obligations hereunder, and such lender or its nominee
      may
      perform in the place of the assigning Lender, and may assign this Agreement
      to
      another Eligible Assignee in place of the assigning Lender, (y) such lender
      shall have no liability under this Agreement except during the period of such
      lender’s ownership of the assigning Lender’s Loan hereunder and (z) that the
      Borrower and each of its Subsidiaries shall accept performance in accordance
      with this Agreement by such lender or its nominee, and (4) that the Borrower
      and
      its Subsidiaries shall make representations and warranties to such lender as
      such lender may reasonably request with regard to (w) the Borrower’s and its
      Subsidiaries’ existence, (x) the Borrower’s and its Subsidiaries’ authority to
      execute, deliver and perform this Agreement and the other Loan Documents to
      which they are a party, (y) the binding nature of the document evidencing the
      Borrower’s and its Subsidiaries’ consent to assignment to such lender and this
      Agreement and each of the other Loan Documents on the Borrower and its
      Subsidiaries, as the case may be, and (z) receipt of regulatory approvals by
      the
      Borrower and its Subsidiaries with respect to its execution and performance
      under this Agreement and the other Loan Documents; provided that the reasonable
      third-party costs and expenses incurred by the Borrower or any of its
      Subsidiaries in connection with any such request shall be borne by the Lender
      or
      Lenders requesting such cooperation.

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    (j)           The
      Borrower shall, and shall cause each of its Subsidiaries to, cooperate, with
      each Lender to consummate any proposed pledge, assignment, transfer,
      participation or financing of the Loan by such Lender, including, without
      limitation, to permit such Lender’s proposed pledgees, assignees, transferees
      and lender(s), their agents, representatives, advisors and trustees (i) to
      conduct due diligence concerning the Borrower and its Subsidiaries, the Existing
      Pipeline and the Project as such Person may request, (ii) to the extent
      reasonably available to the Borrower or any of its Subsidiaries, to provide
      or
      make available to such Person promptly upon such Person’s request therefor, such
      agreements, reports, statements, lists of property, accounts, budgets, forecasts
      and other due diligence information concerning the Existing Pipeline and the
      Project, and, (iii) in connection therewith, to provide reasonable access to
      the
      appropriate officers, accountants, legal counsel and other parties and
      facilities of the Borrower, its Subsidiaries and Affiliates; provided that
      the
      Lenders shall not be entitled to request such cooperation in respect of more
      than three (3) separate and distinct financings; and, provided further, that
      the
      reasonable unaffiliated third-party costs and expenses incurred by the Borrower
      or any of its Subsidiaries in connection with any such due diligence shall
      be
      borne by the Lender or Lenders requesting such cooperation.

     

    SECTION
      8.07.  Governing Law; Entire
      Agreement.  This Agreement, the Negative Pledge and the Notes
      shall be governed by, and construed in accordance with, the laws of the State
      of
      New York, without reference to conflicts of laws (other than Section 5-1401
      and
      Section 5-1402 of the New York General Obligations Law).  This
      Agreement, the Notes, and the other Loan Documents constitute the entire
      understanding among the parties hereto with respect to the subject matter hereof
      and supersede any prior agreements, written or oral, with respect
      thereto.

     

    SECTION
      8.08.  Interest.  It is the intention of the
      parties hereto that the Administrative Agent and each Lender shall conform
      strictly to usury laws applicable to it, if any.  Accordingly, if the
      transactions with the Administrative Agent or any Lender contemplated hereby
      would be usurious under Applicable Law, if any, then, in that event,
      notwithstanding anything to the contrary in the Notes, this Agreement or any
      other agreement entered into in connection with this Agreement or the Notes,
      it
      is agreed as follows:  (a) the aggregate of all consideration
      which constitutes interest under Applicable Law that is contracted for, taken,
      reserved, charged or received by the Administrative Agent or such Lender, as
      the
      case may be, under the Notes, this Agreement or under any other agreement
      entered into in connection with this Agreement or the Notes shall under no
      circumstances exceed the maximum amount allowed by such Applicable Law and
      any
      excess shall be canceled automatically and, if theretofore paid, shall at the
      option of the Administrative Agent or such Lender, as the case may be, be
      applied on the principal amount of the Obligations owed to the Administrative
      Agent or such Lender, as the case may be, by the Borrower or refunded by the
      Administrative Agent or such Lender, as the case may be, to the Borrower, and
      (b) in the event that the maturity of any Loan or other Obligation payable
      to the Administrative Agent or such Lender, as the case may be, is accelerated
      or in the event of any permitted prepayment, then such consideration that
      constitutes interest under law applicable to the Administrative Agent or such
      Lender, as the case may be, may never include more than the maximum amount
      allowed by such Applicable Law and excess interest, if any, to the
      Administrative Agent or such Lender, as the case may be, provided for in this
      Agreement or otherwise shall be canceled automatically as of the date of such
      acceleration or prepayment and, if theretofore paid, shall, at the option of
      the
      Administrative Agent or such Lender, as the case may be, be credited by the
      Administrative Agent or such Lender, as the case may be, on the

     

     

    

      
        
                

                              
                            
      

                    
      
      

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    principal
      amount of the Obligations owed to the Administrative Agent or such Lender,
      as
      the case may be, by the Borrower or refunded by the Administrative Agent or
      such
      Lender, as the case may be, to the Borrower.

     

    SECTION
      8.09.  Confidentiality.  

     

    (a)           Each
      Lender agrees that it will not disclose without the prior written consent of
      the
      Borrower (other than to its employees, auditors, advisors or counsel or to
      another Lender if the disclosing Lender or the disclosing Lender’s holding or
      parent company in its sole discretion determines that any such party should
      have
      access to such information) any information with respect to the Borrower or
      its
      Subsidiaries which is furnished pursuant to this Agreement or any other Loan
      Document and which is designated by the Borrower to the Lenders in writing
      as
      confidential; provided that any Lender may disclose any such information
      (i) as has become generally available to the public other than as a result
      of a violation of this Agreement, (ii) as is required in any report,
      statement or testimony submitted to any municipal, state or federal regulatory
      body having or claiming to have jurisdiction over such Lender or its Affiliates
      or to the Federal Reserve Board or the Federal Deposit Insurance Corporation
      or
      similar organizations (whether in the United States or elsewhere), (iii) as
      is required or appropriate in response to any summons or subpoena or in
      connection with any litigation, (iv) in order to comply with any law,
      order, regulation or ruling applicable to such Lender (including, without
      limitation, any law, order, regulation or ruling of the SEC or the FERC), (v)
      the disclosure of any  of this Agreement, the Notes, the Negative
      Pledge and the Support Agreement and/or any summary or description of the terms
      or provisions hereof or thereof by Pipeline Funding Company, LLC or its
      Affiliates to the Florida Public Service Commission, (vi) to any rating
      agency on a confidential basis, and (vii) to any prospective assignee,
      participant, pledgee or other transferee or lender (or any of their agents,
      trustees, advisors or representatives) in connection with any contemplated
      assignment, participation, pledge or other transfer or financing of any of
      the
      Loan or any of the Notes or any interest therein by such Lender (including,
      without limitation any Person (or their agents or trustees) providing financing
      to a Lender of all or any portion of the Loan made by it hereunder); provided
      that such prospective assignee, participant, pledgee or other transferee or
      lender executes an agreement with the Borrower containing provisions
      substantially identical to those contained in this Section 8.09(a); and
      provided further that, in the event the Administrative Agent or any of the
      Lenders is requested or required by any legal or regulatory authority pursuant
      to any summons or subpoena or in connection with any litigation to disclose
      any
      confidential information, the Administrative Agent or such Lender or Lenders
      shall, to the extent permitted by Applicable Law, promptly notify the Borrower
      of such request or requirement prior to disclosure, if permitted by Applicable
      Law, so that the Borrower may seek an appropriate protective order and/or waive
      compliance with the terms of this Section 8.09(a). In the event that a
      protective order or other remedy is not obtained, or the Borrower waives
      compliance with the provisions hereof, the Administrative Agent and/or the
      applicable Lender or Lenders agrees to furnish only that portion of the
      confidential information that it reasonably determines, in consultation with
      its
      counsel, is consistent with the scope of the subpoena or demand, and to exercise
      reasonable efforts to obtain assurance that confidential treatment will be
      accorded such confidential information.

     

    (b)           The
      Borrower agrees that it will, and will cause each of its Subsidiaries
      to,  not disclose without the prior written consent of the
      Administrative Agent and the applicable

     

     

    

      
        
                

                              
                            
      

                    
      
      

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     Lender
      or Lenders (other than to its employees, auditors or counsel if the Borrower
      in
      its sole discretion determines that any such party should have access to such
      information) any information with respect to the Administrative Agent or the
      Lenders which is furnished pursuant to this Agreement or any other Loan Document
      and which is designated by the Administrative Agent or the applicable Lender
      or
      Lenders to the Borrower in writing as confidential or any information with
      respect to this Agreement or any other Loan Document or any of the terms or
      provisions hereof or thereof; provided that the Borrower or its Subsidiary
      may
      disclose any such information (i) as has become generally available to the
      public other than as a result of a violation of this Agreement, (ii) as is
      required in any report, statement or testimony submitted to any municipal,
      state
      or federal regulatory body having or claiming to have jurisdiction over the
      Borrower or such Subsidiary, (iii) as is required or appropriate in
      response to any summons or subpoena or in connection with any litigation, (iv)
      to any rating agency on a confidential basis, or (v) in order to comply
      with any law, order, regulation or ruling applicable to the Borrower or such
      Subsidiary (including, without limitation, any law, order, regulation or ruling
      of the SEC or the FERC); provided that, in the event the Borrower or any of
      its
      Subsidiaries is requested or required by any legal or regulatory authority
      pursuant to any summons or subpoena or in connection with any litigation to
      disclose any confidential information, the Borrower shall, to the extent
      permitted by Applicable Law, promptly notify the Administrative Agent and the
      Lenders of such request or requirement prior to disclosure so that the
      Administrative Agent and/or the applicable Lender or Lenders may seek an
      appropriate protective order and/or waive compliance with the terms of this
      Section 8.09(b). In the event that a protective order or other remedy is not
      obtained, or the Administrative Agent and/or the applicable Lender or Lenders
      waive compliance with the provisions hereof, the Borrower agrees, and agrees
      to
      cause its Subsidiaries, to furnish only that portion of the confidential
      information that it reasonably determines, in consultation with its counsel,
      is
      consistent with the scope of the subpoena or demand, and to exercise reasonable
      efforts to obtain assurance that confidential treatment will be accorded such
      confidential information.

     

    (c)           Each
      of the Lenders, the Borrower and the Administrative Agent shall
      not, and hereby agrees to cause each of its respective Affiliates not to, make
      or cause the publication of any press release or other announcement with respect
      to this Agreement, the other Loan Documents or any of the transactions
      contemplated hereby or thereby, or otherwise make any disclosures relating
      thereto, without the prior written consent of the other parties, such consent
      not to be unreasonably withheld or delayed; provided, however, that
      such consent shall not be required in the case of disclosure of
      any  of this Agreement, the Notes, the Negative Pledge and the Support
      Agreement and/or any summary or description of the terms or provisions hereof
      or
      thereof by Pipeline Funding Company, LLC or its Affiliates to the Florida Public
      Service Commission or where such release or announcement is required by
      Applicable Law (including, without limitation, any filing required to be made
      or
      information required to be furnished pursuant to applicable rules and
      regulations of the SEC and the FERC) or the rules or regulations of a securities
      exchange, in which event the party so required to issue such release or
      announcement shall use good faith, commercially reasonable efforts, wherever
      possible, to furnish an advance copy of the proposed release to the other
      parties at least one (1) Business Day prior to the proposed
      release.

     

    SECTION
      8.10.  Execution in Counterparts.  This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which

     

     

    

      
        
                

                              
                            
      

                    
      
      

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     when
      so executed shall be deemed to be an original and all of which taken together
      shall constitute one and the same agreement.  Delivery of an executed
      counterpart of a signature page to this Agreement by telecopier or electronic
      facsimile shall be effective as delivery of a manually executed counterpart
      of
      this Agreement.

     

    SECTION
      8.11.  Survival of Representations, Warranties and Certain
      Obligations.  Without prejudice to the survival of any other
      agreement of the Borrower hereunder, the representations and warranties of
      the
      Borrower under Article IV and all obligations of the Borrower under Section
      2.09
      (including without limitation the Borrower’s indemnification obligations under
      Section 2.09(d)), and Section 8.04 (including without limitation the Borrower’s
      indemnification obligations under Section 8.04(b)), shall survive the
      termination of the Commitments and this Agreement and the payment in full of
      all
      amounts due hereunder and under the Notes.  Without prejudice to the
      survival of any other agreement of the Lenders hereunder, each Lender’s
      obligations under Section 7.07 shall survive the termination of its respective
      Commitment, the total Commitments, and this Agreement and the payment in full
      of
      all amounts due hereunder and under the Notes.

     

    SECTION
      8.12.  Severability.  Any provision hereof
      which is prohibited or unenforceable in any jurisdiction shall, as to such
      jurisdiction, be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof and
      without affecting the validity or enforceability of any provision in any other
      jurisdiction.

     

    SECTION
      8.13.  WAIVER OF JURY TRIAL.  THE
      BORROWER, THE ADMINISTRATIVE AGENT, AND THE LENDERS HEREBY KNOWINGLY,
      VOLUNTARILY, INTENTIONALLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION
      THAT RELATES TO OR ARISES OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
      OR
      THE ACTS OR OMISSIONS OF THE ADMINISTRATIVE AGENT, OR ANY LENDER IN THE
      ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR ANY OTHER
      LOAN DOCUMENT OR OTHERWISE WITH RESPECT HERETO OR THERETO.  THE
      PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE
      AGENT AND THE LENDERS ENTERING INTO THIS AGREEMENT.

     

    SECTION
      8.14.  Submission to Jurisdiction.  ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
      DOCUMENT MAY BE BROUGHT IN 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, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR BY THE
      ACCEPTANCE OF THIS AGREEMENT, EACH PARTY TO THIS AGREEMENT HEREBY SUBMITS FOR
      ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE JURISDICTION OF THOSE
      COURTS.  EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ANY
      OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
      GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
      BRINGING OF ANY ACTION OR PROCEEDING IN SUCH 

     

     

    

      
        
                

                              
                            
      

                    
      
      

                              MIAMI/4210166.14              
    

           

        

        
          60

          
            

          

        

        
           

        

      

    

     

     

    JURISDICTION
      IN RESPECT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.  EACH PARTY
      TO THIS AGREEMENT WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
      PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY APPLICABLE
      LAW.

     

    SECTION
      8.15.  USA Patriot Act
      Notice.  Each Lender and the Administrative Agent (for itself and
      not on behalf of any Lender) hereby notifies the Borrower that pursuant to
      the
      requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
      law October 26, 2001)) (the "Act"), it is required to obtain, verify and
      record information that identifies the Borrower, which information includes
      the
      name and address of the Borrower and other information that will allow such
      Lender or the Administrative Agent, as applicable, to identify the Borrower
      in
      accordance with the Act.

     

    [The
      signatures follow.]

     

     

     

     

     

    
 

    
      
              

                            
                          
      

                  
      
      

                            MIAMI/4210166.14              
    

         

      

      
        61

        
          

        

      

      
         

      

    

    

     

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

     

    BORROWER:

     

    CITRUS
      CORP.

     

    By:                                                                           

    Michael
      McLaughlin

    Vice
      President and Treasurer

    

    

    STATEOF
      ___________________  )

                                                                     
      ) ss.

    COUNTY
      OF_________________   )

    

    Personally
      appeared before me, the undersigned, a Notary Public in and for said County,
      ______________________, to me known and known to me, who, being by me first
      duly
      sworn, declared that he/she is the __________________ of Citrus Corp., and
      that
      being duly authorized he/she did execute the foregoing instrument before me
      for
      the purposes set forth therein.

    

    IN
      WITNESS WHEREOF, I have hereto set my hand and official seal at ______________,
      ______________, this ____ day of ____________, 20____

    

    

    ________________________________

    Notary
      Public

    My
      Commission Expires:

    

    

     

    
      
        Signature
          page to Construction and Term Loan Agreement
          (Citrus
            Corp.)
      

                            MIAMI/4210166.14              
    

         

      

      
         

        
          

        

      

      
         

      

    

    ADMINISTRATIVE
      AGENT:

    

    PIPELINE
      FUNDING COMPANY, LLC

    

    By:                                                                           

    Name:                                                                           

    Title:                                                                           

    

    

    STATEOF
      ___________________   )

                                                                      
      ) ss.

    COUNTY
      OF_________________    )

    

    Personally
      appeared before me, the undersigned, a Notary Public in and for said County,
      ______________________, to me known and known to me, who, being by me first
      duly
      sworn, declared that he/she is the __________________ of Pipeline Funding
      Company, LLC, and that being duly authorized he/she did execute the foregoing
      instrument before me for the purposes set forth therein.

    

    IN
      WITNESS WHEREOF, I have hereto set my hand and official seal at ______________,
      ______________, this ____ day of ____________, 20____

    

    

    ________________________________

    Notary
      Public

    My
      Commission Expires:

    

    

     

    
      
        
          Signature
            page to Construction and Term Loan Agreement

          (Citrus
            Corp.)

                            MIAMI/4210166.14              
    

         

      

      
         

        
          

        

      

      
         

      

    

    Commitment                                                                                           LENDER:

     

    $500,000,000.00         
                                                                                       
  PIPELINE FUNDING COMPANY, LLC

     

                             By:                                                                           

     

                           
      Name:                                                                           

     

                           
      Title:                                                                           

     

                           
      Address for Notices:

     

    
      	
            	
               

            	
              Pipeline
                Funding Company, LLC

            

    

    4005
      Kennett Pike - Suite 220

    Greenville,
      Delaware 19807

    Attention:  Barbara
      Morris, President

    Telephone:
      (302) 421-2287

    
      	
            	
               

            	
              Telecopier
                No.: (302) 421-2245

            

    

     

    

     

    STATEOF
      ___________________  )

                                                                     
      ) ss.

    COUNTY
      OF_________________   )

    

    Personally
      appeared before me, the undersigned, a Notary Public in and for said County,
      ______________________, to me known and known to me, who, being by me first
      duly
      sworn, declared that he/she is the __________________ of Pipeline Funding
      Company, LLC, and that being duly authorized he/she did execute the foregoing
      instrument before me for the purposes set forth therein.

    

    IN
      WITNESS WHEREOF, I have hereto set my hand and official seal at ______________,
      ______________, this ____ day of ____________, 20____

    

    

    ________________________________

    Notary
      Public

    My
      Commission Expires:

    

    

    
      Signature
        page to Construction and Term Loan Agreement

      (Citrus
        Corp.)

    

     

     

                      
MIAMI/4210166.14

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