Document:

exv10w1

 

Exhibit 10.1

Execution

 

 

CREDIT AGREEMENT

Dated as of February 14, 2007

Among

TARGA RESOURCES PARTNERS LP,

as the Borrower,

BANK OF AMERICA, N.A.,

as the Administrative Agent, Swing Line Lender

and

L/C Issuer,

WACHOVIA BANK, N.A.,

as the Syndication Agent,

MERRILL LYNCH CAPITAL,

ROYAL BANK OF CANADA,

and

THE ROYAL BANK OF SCOTLAND PLC,

as the Co-Documentation Agents,

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC and WACHOVIA CAPITAL MARKETS, LLC

as

Joint Lead Arrangers

and

BANC OF AMERICA SECURITIES LLC,

as

Sole Book Manager

$500,000,000 Five-Year Revolving Credit Facility

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Other Interpretive Provisions
	 	 	27	 
	1.03 Accounting Terms
	 	 	27	 
	1.04 Rounding
	 	 	28	 
	1.05 Times of Day
	 	 	28	 
	1.06 Letter of Credit Amounts
	 	 	28	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	28	 
	2.01 Committed Loans
	 	 	28	 
	2.02 Borrowings, Conversions and Continuations of Committed Loans
	 	 	29	 
	2.03 Letters of Credit
	 	 	30	 
	2.04 Swing Line Loans
	 	 	39	 
	2.05 Prepayments
	 	 	42	 
	2.06 Termination or Reduction of Commitments
	 	 	44	 
	2.07 Repayment of Loans
	 	 	44	 
	2.08 Interest
	 	 	44	 
	2.09 Fees
	 	 	45	 
	2.10 Computation of Interest and Fees
	 	 	46	 
	2.11 Evidence of Debt
	 	 	46	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	47	 
	2.13 Sharing of Payments by Lenders
	 	 	49	 
	2.14 Increase in Commitments
	 	 	49	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	51	 
	3.01 Taxes
	 	 	51	 
	3.02 Illegality
	 	 	53	 
	3.03 Inability to Determine Rates
	 	 	53	 
	3.04 Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	54	 
	3.05 Compensation for Losses
	 	 	55	 
	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	56	 
	3.07 Survival
	 	 	56	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	56	 
	4.01 Conditions of Initial Credit Extension
	 	 	56	 
	4.02 Conditions to all Credit Extensions
	 	 	60	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	60	 
	5.01 Existence, Qualification and Power; Compliance with Laws
	 	 	60	 
	5.02 Authorization; No Contravention
	 	 	61	 
	5.03 Governmental Authorization; Other Consents
	 	 	61	 
	5.04 Binding Effect
	 	 	61	 
	5.05 Financial Statements; No Material Adverse Effect
	 	 	62	 
	5.06 Litigation
	 	 	62	 
	5.07 No Default
	 	 	62	 
	5.08 Ownership of Property; Liens
	 	 	62	 
	5.09 Environmental Compliance
	 	 	63	 
	5.10 Insurance
	 	 	63	 

i

 

	 	 	 	 	 
	Section	 	Page	 
	5.11 Taxes
	 	 	63	 
	5.12 ERISA Compliance
	 	 	64	 
	5.13 Subsidiaries; Equity Interests; Taxpayer Identification Number
	 	 	64	 
	5.14 Margin Regulations; Investment Company Act
	 	 	65	 
	5.15 Disclosure
	 	 	65	 
	5.16 Compliance with Laws
	 	 	65	 
	5.17 Intellectual Property; Licenses, Etc
	 	 	65	 
	5.18 Labor Disputes and Acts of God
	 	 	66	 
	5.19 Solvency
	 	 	66	 
	5.20 Credit Arrangements
	 	 	66	 
	5.21 Real Property
	 	 	66	 
	5.22 Labor Matters
	 	 	66	 
	5.23 Security Documents
	 	 	66	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	67	 
	6.01 Financial Statements
	 	 	67	 
	6.02 Certificates; Other Information
	 	 	67	 
	6.03 Notices
	 	 	70	 
	6.04 Payment of Obligations
	 	 	71	 
	6.05 Preservation of Existence, Etc
	 	 	71	 
	6.06 Maintenance of Properties
	 	 	71	 
	6.07 Maintenance of Insurance
	 	 	71	 
	6.08 Compliance with Laws
	 	 	72	 
	6.09 Books and Records
	 	 	72	 
	6.10 Inspection Rights
	 	 	72	 
	6.11 Use of Proceeds
	 	 	72	 
	6.12 Additional Subsidiaries, Guarantors and Pledgors
	 	 	73	 
	6.13 Agreement to Deliver Security Documents
	 	 	73	 
	6.14 Perfection and Protection of Security Interests and Liens
	 	 	74	 
	6.15 Performance on the Borrower’s Behalf
	 	 	74	 
	6.16 Environmental Matters; Environmental Reviews
	 	 	74	 
	6.17 Compliance with Agreements
	 	 	75	 
	6.18 Designation and Conversion of Restricted and Unrestricted Subsidiaries
	 	 	75	 
	6.19 Maintenance of Corporate Separateness
	 	 	76	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	76	 
	7.01 Liens
	 	 	76	 
	7.02 Investments
	 	 	78	 
	7.03 Indebtedness
	 	 	79	 
	7.04 Subordinated Indebtedness
	 	 	81	 
	7.05 Fundamental Changes
	 	 	81	 
	7.06 Dispositions
	 	 	82	 
	7.07 Restricted Payments
	 	 	84	 
	7.08 Change in Nature of Business
	 	 	84	 
	7.09 Transactions with Affiliates
	 	 	84	 
	7.10 Burdensome Agreements
	 	 	85	 
	7.11 Prohibited Contracts
	 	 	85	 
	7.12 Limitation on Credit Extensions
	 	 	85	 
	7.13 Use of Proceeds
	 	 	85	 
	7.14 Interest Coverage Ratio
	 	 	86	 
	7.15 Leverage Ratios
	 	 	86	 
	7.16 Negative Pledge
	 	 	87	 

ii

 

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	87	 
	8.01 Events of Default
	 	 	87	 
	8.02 Remedies Upon Event of Default
	 	 	89	 
	8.03 Application of Funds
	 	 	90	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	91	 
	9.01 Appointment and Authority
	 	 	91	 
	9.02 Rights as a Lender
	 	 	91	 
	9.03 Exculpatory Provisions
	 	 	92	 
	9.04 Reliance by Agent
	 	 	92	 
	9.05 Delegation of Duties
	 	 	93	 
	9.06 Resignation of Agent
	 	 	93	 
	9.07 Non-Reliance on Agent and Other Lenders
	 	 	94	 
	9.08 No Other Duties, Etc
	 	 	94	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	94	 
	9.10 Collateral and Guaranty Matters
	 	 	95	 
	9.11 Indemnification of Agents
	 	 	96	 
	9.12 Intercreditor Agreement
	 	 	96	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	97	 
	10.01 Amendments, Etc
	 	 	97	 
	10.02 Notices; Effectiveness; Electronic Communication
	 	 	98	 
	10.03 No Waiver; Cumulative Remedies
	 	 	100	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	100	 
	10.05 Payments Set Aside
	 	 	102	 
	10.06 Successors and Assigns
	 	 	103	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	107	 
	10.08 Deposit Accounts; Right of Setoff
	 	 	108	 
	10.09 Interest Rate Limitation
	 	 	108	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	109	 
	10.11 Survival of Representations and Warranties
	 	 	109	 
	10.12 Severability
	 	 	109	 
	10.13 Replacement of Lenders
	 	 	109	 
	10.14 Governing Law; Jurisdiction; Etc
	 	 	110	 
	10.15 Waiver of Jury Trial and Special Damages
	 	 	111	 
	10.16 No Advisory or Fiduciary Responsibility
	 	 	112	 
	10.17 USA PATRIOT Act Notice
	 	 	113	 
	10.18 No General Partner’s Liability
	 	 	113	 
	10.19 Time of the Essence
	 	 	113	 
	10.20 ENTIRE AGREEMENT
	 	 	113	 
	 
	 	 	 	 
	SIGNATURES
	 	 	S-1	 

iii

 

	 	 	 	 	 
	SCHEDULES	 	 	 
	 
	 	 	 	 
	1.01 Certain Permitted Hedging Parties
	 	 	 	 
	2.01 Commitments and Applicable Percentages
	 	 	 	 
	4.01 Security Documents
	 	 	 	 
	5.13 Subsidiaries; Equity Interests; Taxpayer Identification Number
	 	 	 	 
	5.21 Material Real Property
	 	 	 	 
	6.07 Insurance Summary – Property and Casualty
	 	 	 	 
	7.01 Existing Liens
	 	 	 	 
	7.09 Affiliate Transactions
	 	 	 	 
	10.02 Administrative Agent’s Office; Certain Addresses for Notices
	 	 	 	 
	10.06 Processing and Recordation Fees
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Form of
	 	 	 	 
	 
	 	 	 	 
	A            Committed Loan Notice
	 	 	 	 
	B            Swing Line Loan Notice
	 	 	 	 
	C            Note
	 	 	 	 
	D            Compliance Certificate
	 	 	 	 
	E            Assignment and Assumption
	 	 	 	 
	F            Guaranty
	 	 	 	 
	G            Opinion Matters
	 	 	 	 
	H            Pledge and Security Agreement
	 	 	 	 
	I              Deed of Trust
	 	 	 	 
	J              Intercreditor Agreement
	 	 	 	 

iv

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (“Agreement”) is entered into as of February 14, 2007, among
Targa Resources Partners LP, a Delaware limited partnership (the “Borrower”), each lender
from time to time party hereto (collectively, the “Lenders” and individually, a
“Lender”), and Bank of America, N.A., as Administrative Agent, Collateral Agent, Swing Line
Lender and L/C Issuer.

     The Borrower has requested that the Lenders provide a revolving credit facility, and the
Lenders are willing to do so on the terms and conditions set forth herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

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

     “Acquired Entity or Business” means any Person, property, business or asset acquired
by the Borrower or any Restricted Subsidiary (but not any related Person, property, business or
assets to the extent not so acquired), to the extent not subsequently sold, transferred or
otherwise disposed by the Borrower or such Restricted Subsidiary.

     “Acquisition” means the acquisition by the Borrower from Targa of all the outstanding
partnership interests of Targa North Texas.

     “Additional Debt” means Indebtedness for borrowed money other than Indebtedness
described in Section 7.03.

     “Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or account as
the Administrative Agent may from time to time notify to the Borrower and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

1

 

     “Agent-Related Persons” means, with respect to any Agent, such Agent, together with
its Affiliates, and the officers, directors, employees, agents, advisors and attorneys-in-fact of
such Agent and its Affiliates.

     “Agents” means, collectively, the Administrative Agent, the Collateral Agent and the
Syndication Agent.

     “Aggregate Commitments” means the Commitments of all the Lenders.

     “Agreement” means this Credit Agreement.

     “Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or
if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be
determined based on the Applicable Percentage of such Lender most recently in effect, giving effect
to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Rate” means, from time to time, the following percentages per annum, based
upon, as of any date of determination, the ratio of (i) Consolidated Funded Indebtedness as of such
date to (ii) Consolidated Adjusted EBITDA for the period of four consecutive fiscal quarters most
recently ended for which the Compliance Certificate has been received by Administrative Agent
pursuant to Section 6.02(b) or (c):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Consolidated	 	 	 	 	 	 	 	 
	 	 	Funded	 	 	 	 	 	 	 	 
	 	 	Indebtedness to	 	 	 	 	 	Revolver	 	 
	 	 	Consolidated	 	Commitment	 	Eurodollar	 	Revolver
	Pricing Level	 	Adjusted EBITDA	 	Fee	 	Rate	 	Base Rate
	1
	 	Greater than or equal to 5.25 to 1.0	 	 	0.35	%	 	 	2.25	%	 	 	1.25	%
	2
	 	Less than 5.25 to 1.00 but greater than or equal to 4.75 to 1.0	 	 	0.35	%	 	 	2.00	%	 	 	1.00	%
	3
	 	Less than 4.75 to 1.00 but greater than or equal to 4.25 to 1.0	 	 	0.30	%	 	 	1.75	%	 	 	0.75	%
	4
	 	Less than 4.25 to 1.00 but greater than or equal to 3.75 to 1.0	 	 	0.30	%	 	 	1.50	%	 	 	0.50	%

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Consolidated	 	 	 	 	 	 	 	 
	 	 	Funded	 	 	 	 	 	 	 	 
	 	 	Indebtedness to	 	 	 	 	 	Revolver	 	 
	 	 	Consolidated	 	Commitment	 	Eurodollar	 	Revolver
	Pricing Level	 	Adjusted EBITDA	 	Fee	 	Rate	 	Base Rate
	5
	 	Less than 3.75 to 1.00 but greater than or equal to 3.25 to 1.0	 	 	0.25	%	 	 	1.25	%	 	 	0.25	%
	6
	 	Less than 3.25 to 1.00	 	 	0.20	%	 	 	1.00	%	 	 	0.00	%

     Any increase or decrease in the Applicable Rate resulting from a change in the ratio of
Consolidated Funded Indebtedness to Consolidated Adjusted EBITDA shall become effective as of the
first Business Day immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(b) or (c); provided, however, that at the option of
the Administrative Agent or the Required Lenders, the highest Pricing Level (i.e., the Pricing
Level that produces the highest Applicable Rate) shall apply as of the first Business Day after the
date on which a Compliance Certificate was required to have been delivered but was not delivered,
and shall continue to so apply to and including the date on which such Compliance Certificate is so
delivered (and thereafter the Pricing Level otherwise determined in accordance with this definition
shall apply). The Applicable Rate in effect from the Closing Date through the date following the
Closing Date on which a Compliance Certificate is delivered or to be delivered pursuant to
Section 6.02(b) or (c) shall be determined based upon Pricing Level 4.

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

     “Arranger” means each of Banc of America Securities LLC and Wachovia Capital Markets,
LLC, in its capacity as a joint lead arranger.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit E or any other form approved by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a Capital Lease.

     “Audited Financial Statements” means the audited Consolidated financial statements of
the predecessor business of the Borrower and its Subsidiaries for the ten month period ended
October 31, 2005 and the two month period ended December 31, 2005, and the related Consolidated
statements of income or operations, shareholders’ equity and cash flows for such periods of the
predecessor business of the Borrower and its Subsidiaries, including the notes thereto.

3

 

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Base Rate” means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime rate.” The “prime
rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs
and desired return, general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced rate. Any change in
such rate announced by Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

     “Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrower’s Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the Borrower dated February 14, 2007, as the same may be amended, restated,
supplemented, or otherwise modified from time to time.

     “Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context may
require.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

     “Capital Lease” means any lease that has been or should be, in accordance with GAAP
recorded as a capital lease.

     “Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the
amount of the obligation of such Person as the lessee under such Capital Lease which would, in
accordance with GAAP, appear as a liability on a balance sheet of such Person as of the date of any
determination thereof.

     “Cash Collateralize” has the meaning specified in Section 2.03(g).

4

 

     “Cash Management Obligations” means obligations owed by the Borrower or any Restricted
Subsidiary to any Lender or any Affiliate of a Lender in respect of any overdraft and related
liabilities arising from treasury, depository and cash management services or any automated
clearing house transfers of funds.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any
change in any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any Governmental Authority.

     “Change of Control” means the earlier to occur of:

     (a) Targa shall cease to Control General Partner, or any Person, other than Targa or a Person
Controlled by Targa, shall Control General Partner; or

     (b) General Partner shall cease for any reason to be the sole General Partner of the
Borrower; or

     (c) Any change of control or similar event occurs under the terms of any indenture, note
agreement or other agreement governing any outstanding Unsecured Note Indebtedness that result in
such Unsecured Note Indebtedness becoming due and payable before its maturity or being subject to
a repurchase, retirement or redemption right or option; or

     (d) Less than 50% of Targa’s Consolidated assets, after deducting therefrom the value (net of
any applicable reserves) of all goodwill, trade names, trademarks, patents and other like
intangible assets, are in the Present Line of Business.

     “Chico Plant” means the cryogenic natural gas processing plant located in Wise County,
Texas, including the real property owned by Targa North Texas on which the Chico Plant and related
equipment and operations are located.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

     “Code” means the Internal Revenue Code of 1986.

     “Collateral” means all property of any kind which is subject to a Lien in favor of
Secured Parties (or in favor of the Administrative Agent or the Collateral Agent for the benefit of
Secured Parties) or which, under the terms of any Security Document, is purported to be subject to
such a Lien, in each case granted or created to secure all or part of the Obligations, the Cash
Management Obligations and the Secured Swap Obligations.

     “Collateral Agent” means Bank of America, acting through one or more of its branches
or Affiliates, in its capacity as collateral agent under any of the Loan Documents, or any
successor collateral agent.

5

 

     “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrower pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and
(c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

     “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by
each of the Lenders pursuant to Section 2.01.

     “Committed Loan” has the meaning specified in Section 2.01.

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans,
pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit A.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
D.

     “Consolidated” refers to the consolidation of any Person, in accordance with GAAP,
with its properly Consolidated Subsidiaries. References herein to a Person’s Consolidated
financial statements, financial position, financial condition, liabilities, etc. refer to the
Consolidated financial statements, financial position, financial condition, liabilities, etc. of
such Person and its properly Consolidated Subsidiaries. For avoidance of doubt, neither an
Unrestricted Subsidiary nor a Partially Owned Operating Company shall be considered a Consolidated
Subsidiary of the Borrower.

     “Consolidated Adjusted EBITDA” means, for any period, Consolidated EBITDA;
provided that, (a) if, since the beginning of the four fiscal quarter period ending on the
date for which Consolidated Adjusted EBITDA is determined, the Borrower or any Consolidated
Restricted Subsidiary shall have made any Material Acquisition or Disposition or a Subsidiary shall
be redesignated as either an Unrestricted Subsidiary or a Restricted Subsidiary, Consolidated
Adjusted EBITDA shall be calculated giving pro forma effect thereto as if the Material Acquisition
or Disposition or redesignation had occurred on the first day of such period. Such pro forma effect
shall be determined (i) in good faith by a Responsible Officer of General Partner, and (ii) without
giving effect to any anticipated or proposed change in operations, revenues, expenses or other
items included in the computation of Consolidated Adjusted EBITDA, except with the consent of the
Administrative Agent in its reasonable discretion and (b) Consolidated Adjusted EBITDA may include,
at the Borrower’s option, any Material Project EBITDA Adjustments as provided below. As used
herein, “Material Project EBITDA Adjustments” means, with respect to the construction or
expansion of any capital project of the Borrower or any of its Consolidated Restricted
Subsidiaries, the aggregate capital cost of which (inclusive of capital costs expended prior to the
acquisition thereof) is reasonably expected by the Borrower to exceed, or exceeds, $10,000,000 (a
“Material Project”):

6

 

     (A) prior to the date on which a Material Project has achieved commercial operation
(the “Commercial Operation Date”) (but including the fiscal quarter in which such
Commercial Operation Date occurs), a percentage (based on the then-current completion
percentage of such Material Project as of the date of determination) of an amount to be
approved by Administrative Agent as the projected Consolidated EBITDA attributable to such
Material Project for the first 12-month period following the scheduled Commercial Operation
Date of such Material Project (such amount to be determined based upon projected revenues
from customer contracts, projected revenues that are determined by the Administrative Agent,
in its discretion, to otherwise be highly probable, the creditworthiness and applicable
projected production of the prospective customers, capital and other costs, operating and
administrative expenses, scheduled Commercial Operation Date, commodity price assumptions
and other factors deemed appropriate by Administrative Agent), which may, at the Borrower’s
option, be added to actual Consolidated EBITDA for the fiscal quarter in which construction
or expansion of such Material Project commences and for each fiscal quarter thereafter until
the Commercial Operation Date of such Material Project (including the fiscal quarter in
which such Commercial Operation Date occurs, but net of any actual Consolidated EBITDA
attributable to such Material Project following such Commercial Operation Date);
provided that if the actual Commercial Operation Date does not occur by the
scheduled Commercial Operation Date, then the foregoing amount shall be reduced, for
quarters ending after the scheduled Commercial Operation Date to (but excluding) the first
full quarter after its Commercial Operation Date, by the following percentage amounts
depending on the period of delay (based on the period of actual delay or then-estimated
delay, whichever is longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but not more
than 180 days, 25%, (iii) longer than 180 days but not more than 270 days, 50%, (iv) longer
than 270 days but not more than 365 days, 75%, and (v) longer than 365 days, 100%; and

     (B) beginning with the first full fiscal quarter following the Commercial Operation
Date of a Material Project and for the two immediately succeeding fiscal quarters, an amount
equal to the projected Consolidated EBITDA attributable to such Material Project for the
balance of the four full fiscal quarter period following such Commercial Operation Date,
which may, at the Borrower’s option, be added to actual Consolidated EBITDA for such fiscal
quarters.

     Notwithstanding the foregoing:

     (i) no such Material Project EBITDA Adjustment shall be allowed with respect to any
Material Project unless:

     (a) at least 30 days prior to the last day of the fiscal quarter for which the
Borrower desires to commence inclusion of such Material Project EBITDA Adjustment in
Consolidated EBITDA with respect to a Material Project (the “Initial
Quarter”), the Borrower shall have delivered to Administrative Agent written pro
forma projections of Consolidated EBITDA attributable to such Material Project, and

7

 

     (b) prior to the last day of the Initial Quarter, Administrative Agent shall
have approved (such approval not to be unreasonably withheld) such projections and
shall have received such other information and documentation as Administrative Agent
may reasonably request, all in form and substance satisfactory to Administrative
Agent, and

          (ii) the aggregate amount of all Material Project EBITDA Adjustments during any period shall
be limited to 15% of the total actual Consolidated EBITDA for such period (which total actual
Consolidated EBITDA shall be determined without including any Material Project EBITDA Adjustments).

     “Consolidated EBITDA” means, for any period, the sum of the Consolidated Net Income of
the Borrower and its Consolidated Restricted Subsidiaries during such period, plus (a) the
following to the extent deducted in calculating such Consolidated Net Income: (i) all Interest
Expense for such period, (ii) all Federal, state, local and foreign income taxes (including any
franchise taxes to the extent based upon net income) for such period, (iii) all depreciation,
amortization (including amortization of good will, debt issue costs and amortization under FAS Rule
123) and other non-cash charges (including any provision for the reduction in the carrying value of
assets recorded in accordance with GAAP, any extraordinary gains (or losses), any non-cash gains
(or losses) resulting from mark to market activity as a result of the implementation of Statement
of Financial Accounting Standards 133, “Accounting for Derivative Instruments and Hedging
Activities”, but excluding any non-cash charges that constitute an accrual of or reserve for future
cash charges, and not treating write downs or write offs of receivables as non-cash charges) for
such period and (iv) costs and expenses incurred in connection with the transactions contemplated
hereby and minus (b) the following to the extent included in calculating such Consolidated
Net Income, (i) all Federal, state, local and foreign income tax credits for such period and (ii)
all non-cash items of income (other than account receivables and similar items arising from the
normal course of business and reflected as income under accrual methods of accounting consistent
with past practices) for such period. For avoidance of doubt, Consolidated Net Income attributable
to Unrestricted Subsidiaries, Partially Owned Operating Companies and Persons that are not
Subsidiaries shall not be considered in calculating Consolidated EBITDA except to the extent of
actual cash distributions to the Borrower or any of its Consolidated Restricted Subsidiaries by
such Unrestricted Subsidiaries, such Partially Owned Operating Companies or such other Persons.
Notwithstanding the foregoing, the actual cash distributions to the Borrower or any of its
Consolidated Restricted Subsidiaries by (i) Persons who are not Subsidiaries and any of whose
Equity Interests that are owned by a Loan Party are not Collateral or (ii) Unrestricted
Subsidiaries, during any period that will be included in Consolidated EBITDA shall be limited in
the aggregate to 15% of the total actual Consolidated EBITDA for such period (which total actual
Consolidated EBITDA shall be determined without including any such distributions).

     “Consolidated Funded Indebtedness” means, as of any date, the sum of the following
(without duplication): (i) Indebtedness of the Borrower or any of its Consolidated Restricted
Subsidiaries for borrowed money or evidenced by bonds, debentures, notes, loan agreements or other
similar instruments, (ii) Attributable Indebtedness of the Borrower or any of its Consolidated
Restricted Subsidiaries in respect of Capital Lease Obligations and Synthetic Lease Obligations or
(iii) Indebtedness of the Borrower or any of its Consolidated Restricted

8

 

Subsidiaries in respect of Guarantees of Indebtedness of another Person (other than the
Borrower or a Restricted Subsidiary).

     “Consolidated Leverage Ratio” means, for any date of determination (i) Consolidated
Funded Indebtedness on such date of determination to (ii) Consolidated Adjusted EBITDA for the
period of four consecutive fiscal quarters most recently ended prior to the date of determination.

     “Consolidated Net Income” means, for any period, the Borrower’s and its Consolidated
Restricted Subsidiaries’ gross revenues for such period, including any cash dividends or
distributions actually received from any other Person during such period, minus the Borrower’s and
its Restricted Subsidiaries’ expenses and other proper charges against income (including taxes on
income to the extent imposed), determined on a Consolidated basis in accordance with GAAP
consistently applied (including, without duplication, the elimination of earnings or losses
attributable to outstanding minority interests and the exclusion of the net earnings of any Person
other than a Restricted Subsidiary in which the Borrower or any of its Restricted Subsidiaries has
an ownership interest).

     “Consolidated Net Tangible Assets” means, at any date of determination, the total
amount of Consolidated assets of the Borrower and its Consolidated Restricted Subsidiaries after
deducting therefrom: (a) all current liabilities (excluding (i) any current liabilities that by
their terms are extendable or renewable at the option of the obligor thereon to a time more than 12
months after the time as of which the amount thereof is being computed, and (ii) current maturities
of long-term debt); and (b) the value (net of any applicable reserves) of all goodwill, trade
names, trademarks, patents and other like intangible assets, all as set forth, or on a pro forma
basis would be set forth, on the Consolidated balance sheet of the Borrower and its Consolidated
Restricted Subsidiaries for the most recently completed fiscal quarter, prepared in accordance with
GAAP.

     “Consolidated Senior Leverage Ratio” means, for any date of determination (i)
Consolidated Funded Indebtedness on such date of determination (excluding the Unsecured Note
Indebtedness) to (ii) Consolidated Adjusted EBITDA for the period of four consecutive fiscal
quarters most recently ended prior to the date of determination.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,

9

 

rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the
Applicable Rate plus 2% per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans, participations in L/C Obligations or participations in Swing Line Loans required
to be funded by it hereunder within one Business Day of the date required to be funded by it
hereunder, unless such failure has been cured, (b) has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due, unless the subject of a good faith dispute or unless
such failure has been cured, or (c) has been deemed insolvent or become the subject of a bankruptcy
or insolvency proceeding.

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction and any sale of Equity Interests) of any
property by any Person (or the granting of any option or other right to do any of the foregoing),
including any sale, assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith; provided, that “Disposition”
or “Dispose” shall not be deemed to include any issuance by the Borrower of any of its Equity
Interest to another Person.

     “DOL” means the Department of Labor, or any Governmental Authority succeeding to any
of its principal functions.

     “Dollar” and “$” mean lawful money of the United States.

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

     “Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject to such consents, if
any, as may be required under Section 10.06(b)(iii)).

     “Eligible Equity Interests” means, with respect to any First-Tier Foreign Subsidiary,
all shares of capital stock or other Equity Interests of whatever class of such First-Tier Foreign
Subsidiary, in each case together with any certificates evidencing the same, excluding, however,
all shares of capital stock or other Equity Interests of such First-Tier Foreign Subsidiary which

10

 

represent in excess of 66% of the combined voting power of all classes of capital stock or
other Equity Interests of such First-Tier Foreign Subsidiary; provided, however,
that if following a change in the relevant sections of the Code or the regulations, rules, rulings,
notices or other official pronouncements issued or promulgated thereunder which would change the
maximum percentage of the total combined voting power of all classes of capital stock or other
Equity Interests of any such First-Tier Foreign Subsidiary entitled to vote that may be pledged
without causing (a) the undistributed earnings of such First-Tier Foreign Subsidiary as determined
for United States federal income tax purposes to be treated as a deemed dividend to, or investment
in United States property of, the owner of such capital stock or other Equity Interests or (b)
other material adverse consequences to the Borrower, any Guarantor, or any of their Restricted
Subsidiaries, then the 66% limitation set forth above shall be changed to 1% less than such maximum
percentage.

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, authorizations, agreements or governmental restrictions relating to pollution
and the protection of the environment or the release of any Hazardous Materials into the
environment, including those related to hazardous substances or wastes, air emissions and
discharges to waste or public systems.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower, any other Loan Party or any of their respective Subsidiaries (whether imposed by Law or
imposed or assumed by any contract, agreement or other consensual arrangement or otherwise), and
directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, or (d) the release or threatened release of any
Hazardous Materials into the environment.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

     “Equity Investors” means the Sponsor and the Management Stockholders.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

11

 

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

     “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, 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) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.
If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate
at which deposits in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by
Bank of America and with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar market at their request
at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such
Interest Period.

     “Eurodollar Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurodollar Rate.

     “Event of Default” has the meaning specified in Section 8.01.

     “Excess Sale Proceeds” means Net Proceeds of a Disposition by the Borrower or any of
its Restricted Subsidiaries pursuant to Section 7.06(m) that have not been applied within
two hundred seventy (270) days after the date of receipt of such Net Proceeds to the purchase of
capital assets used in the Present Line of Business.

     “Exchange Act” means the Securities Exchange Act of 1934.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
Lending

12

 

Office is located, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
10.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 3.01(a).

     “Extraordinary Receipts” means gross proceeds received by any Loan Party relating to
(a) insurance in respect of casualty to property that the Borrower has determined (which
determination must be made with reasonable promptness following such casualty) will not be applied
to the repair or replacement thereof within two hundred seventy (270) days following such casualty,
(b) payments pursuant to any indemnity agreement that the Borrower has determined (which
determination must be made with reasonable promptness following receipt of such payment) will not
be applied to remedy the circumstances or improve, repair or replace the property of such Loan
Party pursuant to which such indemnity payment arose within two hundred seventy (270) days
following such payment, or (c) pension reversions; provided that in no event shall
such Extraordinary Receipts include Net Proceeds.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve
Bank of New York on the Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined
by the Administrative Agent.

     “Fee Letter” means the letter agreement, dated January 4, 2007, among the Borrower,
the Administrative Agent, the Syndication Agent and the Arrangers.

     “First-Tier Foreign Subsidiary” means a Foreign Subsidiary that is a direct Subsidiary
of the Borrower, any Guarantor or a Domestic Subsidiary.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. For purposes of this
definition, the United States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     “Foreign Subsidiary” means, with respect to any Person, any Subsidiary of such Person
which is not a Domestic Subsidiary. Any unqualified reference to any Foreign Subsidiary shall

13

 

be deemed a reference to a Foreign Subsidiary of the Borrower, unless the context clearly
indicates otherwise.

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “General Partner” means Targa Resources GP LLC, a Delaware limited liability company
which, as of the Closing Date, is a Wholly Owned Subsidiary of Targa, and which, as of the Closing
Date, owns a two percent (2%) general partner interest in, and is the sole general partner of, the
Borrower.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

     “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if

14

 

not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

     “Guarantors” means, collectively, each Restricted Subsidiary of the Borrower that is
not an Immaterial Subsidiary and has become party to the Guaranty on the Closing Date or at any
time thereafter, including pursuant to the requirements of Section 6.12.

     “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative
Agent, L/C Issuer and the Lenders, substantially in the form of Exhibit F.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedging Party” means, in each case in its capacity as a party to a Swap Contract, (i)
any Person that is a Lender or an Affiliate of a Lender, (ii) any Person listed on Schedule 1.01
hereto and any of such Person’s Affiliates and (iii) any other Person with the consent of the
Administrative Agent, such consent not be unreasonably withheld or delayed.

     “Holding Company” means, at any time, any company that at such time (a) owns (directly
or indirectly through one or more other Holding Companies satisfying the requirements of this
definition) a majority of the Voting Stock of the Borrower, (b) does not own any other material
assets (other than cash, cash equivalents and Investments in other Holding Companies) and (c) does
not engage in any business or activity other than serving as a direct or indirect holding company
controlling the Borrower and activities incidental thereto.

     “Immaterial Subsidiary” means any one or more Domestic Restricted Subsidiary of the
Borrower or any of its Restricted Subsidiaries that, together with all other Domestic Restricted
Subsidiaries that have not executed and delivered a Guaranty, contribute less than 0.5% to
Consolidated Net Tangible Assets and contribute less than 5% to Consolidated EBITDA.

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

     (c) net obligations of such Person under any Swap Contract;

15

 

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business that are (i)
not unpaid for more than 90 days after the date on which such trade account payable was
created or (ii) being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves in accordance with GAAP are being maintained by the
applicable Loan Party);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements and mortgage, industrial revenue bonds, industrial
development bonds and similar financings), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) all Attributable Indebtedness in respect of Capital Lease Obligations and Synthetic
Lease Obligations of such Person;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person (other than as permitted
pursuant to Section 7.06) or any other Person, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless and to the
extent that such Indebtedness is expressly made non-recourse to such Person. The amount of any net
obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date. The amount of Indebtedness of any Person for purposes of clause (e) shall
be deemed to be equal to the lesser of (i) the aggregate unpaid amount of such Indebtedness and
(ii) if and to the extent such Indebtedness is limited in recourse to the property encumbered, the
fair market value of the property encumbered thereby, as determined by such Person in good faith.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.04(b).

     “Information” has the meaning specified in Section 10.07.

     “Initial Financial Statements” means (a) the Audited Financial Statements and (b) the
unaudited pro forma Consolidated financial statements of the Borrower and its Consolidated
Subsidiaries as of September 30, 2006 after giving effect to the Acquisition.

     “Initial Public Offering” means the initial offering or issuance by the Borrower of
Equity Interests pursuant to the Registration Statement.

16

 

     “Intercompany Indebtedness” means all indebtedness of Targa North Texas existing prior
to the date hereof owing to Targa or any of its Subsidiaries which was incurred in connection with
the transfer of assets to Targa North Texas.

     “Intercreditor Agreement” means the Intercreditor Agreement, substantially in the form
attached as Exhibit J, among the Borrower, the Collateral Agent and any Hedging Party that
is party to any Secured Hedge Agreement.

     “Interest Expense” means, with respect to any period, the sum (without duplication) of
the following (in each case, eliminating all offsetting debits and credits between the Borrower and
its Restricted Subsidiaries and all other items required to be eliminated in the course of the
preparation of Consolidated financial statements of the Borrower and its Restricted Subsidiaries in
accordance with GAAP): (a) all interest, premium payments, debt discount, fees, charges and related
expenses in respect of Indebtedness of the Borrower or any of its Restricted Subsidiaries
(including imputed interest on Capital Lease Obligations) which are accrued during such period and
whether expensed in such period or capitalized and (b) all other amounts properly treated as
interest expense in accordance with GAAP.

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its
Committed Loan Notice or such other period that is twelve months or less requested by the Borrower
and consented to by all the Lenders; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

     (ii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and

     (iii) no Interest Period shall extend beyond the Maturity Date.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of
another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or equity participation or interest in, another
Person, including any partnership or joint venture interest in such other Person and any

17

 

arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or
(c) the purchase or other acquisition (in one transaction or a series of transactions) of all or
substantially all of the property and assets or business of another Person or assets that
constitute a business unit, line of business or division of another Person. For purposes of
covenant compliance, the amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such Investment.

     “IP Rights” has the meaning specified in Section 5.17.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance of such Letter of Credit).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Borrower (or any Restricted Subsidiary) or in favor of the L/C Issuer and relating to any such
Letter of Credit.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Committed
Borrowing.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn

18

 

thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrower and the Administrative Agent.

     “Letter of Credit” means any letter of credit issued hereunder.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

     “Letter of Credit Expiration Date” means the day that is nine days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” means an extension of credit by a Lender to the Borrower under Article
II in the form of a Committed Loan or a Swing Line Loan.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, the Fee
Letter, the Guaranty, the Security Documents, the Intercreditor Agreement and all other agreements,
certificates, documents, instruments and writings at any time delivered in connection herewith or
therewith (exclusive of term sheets and commitment letters).

     “Loan Parties” means, collectively, the Borrower and each Guarantor.

     “Management Stockholders” means the members of management of Targa or its Subsidiaries
who are investors in Targa or any Holding Company.

     “Mark-to-Market” means the process of revaluing for trading purposes commodity
contracts held by any Person, whether in respect of physical inventory, futures, forward exchanges,
swaps or other derivatives, and which contracts may have a fixed price, a floating price and fixed
differential, or other pricing basis, to the current market prices for such contracts, and
determining the gain or loss on such contracts, on an aggregate net trading basis for all such
contracts of such Person, by comparing the original prices of such contracts to the market prices
on the date of determination.

19

 

     “Material Acquisition or Disposition” means the Acquisition or any of the following
having a fair market value in excess of $30,000,000: (a) any acquisition of any Acquired Entity or
Business, (b) the Disposition of any assets (including Equity Interests) by the Borrower or any of
its Restricted Subsidiaries, and (c) all mergers and consolidations of the type referred to in
Sections 7.05(d) and (e).

     “Material Adverse Effect” means (a) a material adverse effect on the business,
operations, assets, liabilities (actual or contingent) or financial condition of the Borrower and
its Restricted Subsidiaries, taken as a whole, (b) a material adverse effect on the ability of the
Borrower or the Loan Parties (taken as a whole) to perform their respective payment obligations
under any Loan Document to which the Borrower or any of the other Loan Parties is a party or (c) a
material adverse effect on the rights and remedies of the Lenders under any Loan Document.

     “Maturity Date” means February 14, 2012; provided, however, that if
such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

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

     “Mortgage” has the meaning specified in Section 4.01(a)(iv).

     “Mortgage Policy” has the meaning specified in Section 4.01(a)(iv)(B).

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Net Proceeds” means the remainder of (a) as applicable (i) the gross proceeds
received from a Disposition (excluding proceeds that constitute capital assets used in the Present
Line of Business), or (ii) the gross proceeds received by any Loan Party from the issuance of
Additional Debt, as applicable, less (b) underwriter discounts and commissions, investment banking
fees, legal, accounting and other professional fees and expenses, amounts required to be applied to
the repayment of Indebtedness secured by a Lien permitted hereunder on any asset which is the
subject of such Disposition, and other usual and customary transaction costs, net of taxes paid or
reasonably estimated to be payable as a result thereof within two years of the date of the relevant
Disposition as a result of any gain recognized in connection therewith and related to such
Disposition or Additional Debt issuance, as applicable. To the extent any such gross proceeds are
received that are not cash or cash equivalents or are not promptly converted to cash or cash
equivalents, the value of such proceeds shall be the fair market value thereof at the time of
receipt.

     “Note” means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit C.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption),

20

 

absolute or contingent, due or to become due, now existing or hereafter arising and including
interest and fees that accrue after the commencement by or against any Loan Party of any proceeding
under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding.

     “Omnibus Agreement” means the Omnibus Agreement dated as of the Closing Date among
Targa, General Partner and the Borrower.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

     “Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

     “Outstanding Amount” means (i) with respect to Committed Loans and Swing Line Loans on
any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings
and prepayments or repayments of Committed Loans and Swing Line Loans, as the case may be,
occurring on such date; and (ii) with respect to any L/C Obligations on any date, the amount of
such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of such date,
including as a result of any reimbursements by the Borrower of Unreimbursed Amounts.

     “Partially Owned Operating Company” means any Person (i) that is not a Wholly Owned
Subsidiary of the Borrower where the portion of the Equity Interest not owned by the Borrower and
its Restricted Subsidiaries is owned by Targa or any of its Subsidiaries, and (ii) that holds
operating assets.

     “Participant” has the meaning specified in Section 10.06(d).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

21

 

     “Permitted Acquisition” has the meaning set forth in Section 7.02(i).

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.02.

     “Pledge and Security Agreement” means the Pledge and Security Agreement, dated as of
the date hereof, and to be executed and delivered by the Borrower and the other Pledgors in favor
of the Collateral Agent, substantially in the form of Exhibit H, as amended, restated,
supplemented or otherwise modified from time to time, including, without limitation, by any
supplement thereto executed and delivered after the date of this Agreement pursuant to Section
6.12 in order to (a) effect the joinder of any additional Subsidiary or (b) subject thereto any
additional Equity Interests.

     “Pledgors” means the Borrower, each Guarantor, and each of the Restricted Subsidiaries
from time to time parties to the Pledge and Security Agreement.

     “Present Line of Business” means (i) the Loan Parties’ existing natural gas and
natural gas liquids gathering, treating, processing, terminalling, storage, transporting and
marketing operations, (ii) other oil, natural gas, natural gas liquids and related products
gathering, treating, processing, terminalling, storage, transporting and marketing operations and
(iii) any business that is reasonably related, incidental or ancillary thereto.

     “Register” has the meaning specified in Section 10.06(c).

     “Registration Statement” means the Form S-1 Registration Statement filed by the
Borrower with the SEC as Registration No. 333-138747, as amended.

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit
Extension, a Letter of Credit Application and (c) with respect to a Swing Line Loan, a Swing Line
Loan Notice.

     “Required Lenders” means, as of any date of determination, (subject to the
Intercreditor Agreement with respect to those matters as to which Hedging Parties are entitled to
vote thereunder) Lenders having more than 50% of the Aggregate Commitments or, if the

22

 

commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C
Credit Extensions have been terminated pursuant to Section 8.02, Lenders holding in the
aggregate more than 50% of the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held”
by such Lender for purposes of this definition); provided that the Commitment of, and the
portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded
for purposes of making a determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, chief accounting officer,
president, chief financial officer, treasurer, assistant treasurer or controller of a Loan Party
and, solely for purposes of notices given pursuant to Article II, any other officer or
employee of the applicable Loan Party so designated by any of the foregoing officers in a notice to
the Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer
of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate,
partnership and/or other action on the part of such Loan Party and such Responsible Officer shall
be conclusively presumed to have acted on behalf of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of any
Loan Party or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on
account of any return of capital to any Person’s stockholders, partners or members (or the
equivalent of any thereof), or any option, warrant or other right to acquire any such dividend or
other distribution or payment.

     “Restricted Subsidiary” means any Subsidiary that is not an Unrestricted Subsidiary or
a Partially Owned Operating Company, provided, that any such Partially Owned Operating
Company will be a Restricted Subsidiary of the Borrower solely for purposes of Sections
7.01, 7.02, 7.03, 7.05, 7.06, 7.07 and 7.08.

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

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

     “Secured Hedge Agreement” means any Swap Contract that (i) is permitted under Article
7 and (ii) is by and between any Loan Party and any Hedging Party; provided that such Swap Contract
shall not constitute a Secured Hedge Agreement unless the relevant Hedging Party is a Lender or an
Affiliate of a Lender or subject to the Intercreditor Agreement (a) on the Closing Date (in the
case of transactions under Swap Contracts in effect on the Closing Date) or (b) on the date of an
applicable transaction (in the case of transactions under Swap Contracts entered into after the
Closing Date).

     “Secured Parties” means, collectively, the Administrative Agent, the Collateral Agent,
the L/C Issuer, the Lenders, any Hedging Party that is a party to a Secured Hedge Agreement,

23

 

and each co-agent or sub-agent appointed by the Administrative Agent or Collateral Agent from
time to time pursuant to Section 9.05.

     “Secured Swap Obligations” means all obligations arising from time to time under
Secured Hedge Agreements; provided that if such counterparty ceases to be a Lender
hereunder or an Affiliate of a Lender hereunder, or ceases to be a party to the Intercreditor
Agreement, Secured Swap Obligations shall only include such obligations to the extent arising from
transactions either (i) entered into on or prior to the Closing Date if the counterparty was a
Lender hereunder or an Affiliate of a Lender hereunder or a party to the Intercreditor Agreement on
the Closing Date or (ii) entered into after the Closing Date if such counterparty was a Lender
hereunder or an Affiliate of a Lender hereunder or a party to the Intercreditor Agreement at the
time the transaction was entered into.

     “Security Documents” means the instruments listed in Schedule 4.01 and all
other security agreements, deeds of trust, mortgages, chattel mortgages, pledges, Guarantees,
financing statements, continuation statements, extension agreements and other agreements or
instruments now, heretofore, or hereafter delivered by any Loan Party to Administrative Agent in
connection with this Agreement or any transaction contemplated hereby to secure or Guarantee the
payment of any part of the Obligations, the Secured Swap Obligations or the Cash Management
Obligations or the performance of any Loan Party’s other duties and obligations under the Loan
Documents or the Secured Hedge Agreements.

     “Solvent” and “Solvency” mean, with respect to any Person on a particular
date, that on such date (a) the fair value of the property of such Person is greater than the total
amount of liabilities, including contingent liabilities, of such Person, (b) the present fair
salable value of the assets of such Person is not less than the amount that will be required to pay
the probable liability of such Person on its debts as they become absolute and matured, (c) such
Person does not intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not
engaged in business or a transaction, and is not about to engage in business or a transaction, for
which such Person’s property would constitute an unreasonably small capital, and (e) such Person is
able to pay its debts and liabilities, contingent obligations and other commitments as they mature
in the ordinary course of business. The amount of contingent liabilities at any time shall be
computed as the amount that, in the light of all the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or matured liability.

     “Specified Acquisition” means an acquisition (or series of related acquisitions) of an
Acquired Entity or Business for an aggregate purchase price of not less than $30,000,000.

     “Sponsor” means Warburg Pincus LLC and its Affiliates, but not including, however, any
portfolio companies of any of the foregoing.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are

24

 

at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, commodity futures contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price or forward bond
index transactions, interest rate options, forward foreign exchange transactions, cap transactions,
floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any
other master agreement relating to transactions of the type described in clause (a) above (any such
master agreement, together with any related schedules, a “Master Agreement”), including any
such obligations or liabilities under any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the Mark-to-Market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender).

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

     “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.04(a).

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B.

     “Swing Line Sublimit” means an amount equal to the lesser of (a) $100,000,000 and (b)
the Aggregate Commitments. The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

     “Syndication Agent” means Wachovia Bank, N.A. in its capacity as syndication agent
under any of the Loan Documents, or any successor syndication agent.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or

25

 

possession of property creating obligations that do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Targa” means Targa Resources, Inc., a Delaware corporation.

     “Targa Credit Agreement” means that certain Credit Agreement dated as of October 31,
2005, among Targa, Credit Suisse, as administrative agent and the lenders from time to time party
thereto.

     “Targa North Texas” means Targa North Texas LP, a Delaware limited partnership.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Threshold Amount” means an amount equal to three percent (3%) of Consolidated Net
Tangible Assets of the Borrower as of the financial statements most recently delivered pursuant to
Section 4.01(a)(vii), Section 6.01(a) or Section 6.01(b), as applicable.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Type” means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

     “UCC” means the Uniform Commercial Code as the same may from time to time be in effect
in the State of New York or the Uniform Commercial Code (or similar code or statute) of another
jurisdiction, to the extent it may be required to apply to any item or items of Collateral.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section
412 of the Code for the applicable plan year.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “Unrestricted Subsidiary” means any Subsidiary which the Borrower has designated in
writing to the Administrative Agent to be an Unrestricted Subsidiary pursuant to Section
6.18 and which the Borrower has not designated to be a Restricted Subsidiary pursuant to
Section 6.18.

     “Unsecured Note Indebtedness” means Indebtedness permitted under Sections
7.03(f) or (o).

26

 

     “Voting Stock” of any Person means Equity Interests of any class or classes having
ordinary voting power for the election of directors or the equivalent governing body of such
Person.

     “Wholly Owned Subsidiary” means any Subsidiary of a Person, all of the issued and
outstanding Equity Interests are directly or indirectly (through one or more Subsidiaries) owned by
such Person, excluding directors’ qualifying shares if applicable.

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document,
unless otherwise specified herein or in such other Loan Document:

     (a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to time,
and (vi) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

     (b) In the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including;” the words “to” and
“until” each mean “to but excluding;” and the word “through” means “to
and including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms.

     (a) Generally. All accounting terms not specifically or completely defined herein
shall be construed in conformity with, and all financial data (including financial ratios and
other financial calculations) required to be submitted pursuant to this Agreement shall be

27

 

prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited Financial Statements,
except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower
shall negotiate in good faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to such
change in GAAP.

     1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05 Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable).

     1.06 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit
at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any Issuer Document related thereto, provides for one or more automatic
increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all such increases,
whether or not such maximum stated amount is in effect at such time.

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Committed Loans. Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a “Committed Loan”) to the Borrower from time to
time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at
any time outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Total Outstandings shall not exceed
the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all
Swing Line Loans shall not exceed such Lender’s Commitment. Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the

28

 

Borrower may borrow under
this Section 2.01, prepay under Section 2.05, and reborrow under this Section
2.01. Committed Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided
herein.

     2.02 Borrowings, Conversions and Continuations of Committed Loans.

          (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable
notice to the Administrative Agent, which may be given by telephone. Each such notice must be
received by the Administrative Agent not later than (i) noon three Business Days prior to the
requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of
any conversion of Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) 11:00 a.m. on the
requested date of any Borrowing of Base Rate Committed Loans; provided, however,
that if the Borrower wishes to request Eurodollar Rate Loans having an Interest Period other than
one, two, three or six months in duration as provided in the definition of “Interest Period”, the
applicable notice must be received by the Administrative Agent not later than noon four Business
Days prior to the requested date of such Borrowing, conversion or continuation, whereupon the
Administrative Agent shall give prompt notice to the Lenders of such request and determine whether
the requested Interest Period is acceptable to all of them. Not later than noon, three Business
Days before the requested date of such Borrowing, conversion or continuation, the Administrative
Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested
Interest Period has been consented to by all the Lenders. Each telephonic notice by the Borrower
pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a
Responsible Officer of General Partner. Each Borrowing of, conversion to or continuation of
Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof or in the amount of the unused Commitments. Except as provided in
Sections 2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate
Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof or in the amount of the unused Commitments. Each Committed Loan Notice (whether
telephonic or written) shall specify (i) whether the Borrower is requesting a Committed Borrowing,
a conversion of Committed Loans from one Type to the other, or a continuation of Eurodollar Rate
Loans, (ii) the requested date of the Borrowing, conversion or
continuation, as the case may be (which shall be a Business Day), (iii) the principal amount
of Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Committed Loans shall be made as, or
converted to, Base Rate Loans (unless the Committed Loan being continued is a Eurodollar Rate
Loan, in which case it shall be continued as a Eurodollar Rate Loan with an Interest Period of one
month). Any such automatic conversion to Base Rate Loans or continuations as Eurodollar Rate
Loans shall be effective as of the last day of the Interest Period then in effect with respect to
the applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in

29

 

any such Committed Loan Notice, but fails to specify an
Interest Period, it will be deemed to have specified an Interest Period of one month.

          (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount of its Applicable Percentage of the applicable Committed Loans,
and if no timely notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic conversion to Base
Rate Loans or continuations as Eurodollar Rate Loans described in the preceding subsection. In
the case of a Committed Borrowing, each Lender shall make the amount of its Committed Loan
available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan
Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if
such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the books of Bank of
America with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent
by the Borrower; provided, however, that if, on the date the Committed Loan Notice
with respect to such Borrowing is given by the Borrower, there are L/C Borrowings outstanding,
then the proceeds of such Borrowing, first, shall be applied to the payment in full of any
such L/C Borrowings, and second, shall be made available to the Borrower as provided
above.

          (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan unless the Borrower pays
the amount due, if any, under Section 3.05 in connection therewith. During the existence
of an Event of Default, the Administrative Agent or the Required Lenders may require that no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans.

          (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of
such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such change.

          (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than fifteen Interest Periods in effect with respect to Committed Loans.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from
time to time on any Business Day during the period from the Closing Date until

30

 

the Letter of
Credit Expiration Date, to issue Letters of Credit upon the request of the Borrower for the
account of the Borrower or any Restricted Subsidiary, and to amend or extend Letters of
Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in
Letters of Credit issued for the account of the Borrower or any Loan Party and any drawings
thereunder; provided that after taking such Letter of Credit into account, (x) the
Total Outstandings shall not exceed the Aggregate Commitments, and (y) the aggregate
Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not
exceed such Lender’s Commitment. Each request by the Borrower for the issuance or amendment
of a Letter of Credit shall be deemed to be a representation by the Borrower that the L/C
Credit Extension so requested complies with the conditions set forth in the proviso to the
preceding sentence. Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and
accordingly the Borrower may, during the foregoing period, obtain Letters of Credit for the
account of the Borrower or any Restricted Subsidiary to replace Letters of Credit that have
expired or that have been drawn upon and reimbursed.

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

     (A) subject to Section 2.03(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of issuance or
last extension, unless the Required Lenders have approved such expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such expiry
date.

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

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

     (B) the issuance of such Letter of Credit would violate any Laws or one or more
policies of the L/C Issuer applicable to letters of credit generally;

31

 

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer,
such Letter of Credit is in an initial stated amount less than $100,000.

     (D) such Letter of Credit is to be denominated in a currency other than
Dollars;

     (E) such Letter of Credit contains any provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

     (F) a default of any Lender’s obligations to fund under Section 2.03(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C
Issuer has entered into satisfactory arrangements with the Borrower or such Lender
to eliminate the L/C Issuer’s risk with respect to such Lender.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of Credit.

     (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have
all of the benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article IX included the L/C Issuer with respect to such acts or omissions, and
(B) as additionally provided herein with respect to the L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower for the account of the Borrower or any Restricted Subsidiary, as the
case may be, delivered to the L/C Issuer (with a copy to the Administrative Agent) in the
form of a Letter of Credit Application, appropriately completed and signed by a Responsible
Officer of General Partner. Such Letter of Credit Application must be received by the L/C
Issuer and the Administrative Agent not later than noon at least one Business Day (or such
later date and time as the Administrative Agent and the L/C Issuer may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date of amendment,
as the case may be. In the case of a request for an initial issuance of a Letter of Credit,
such Letter of Credit Application shall specify in form and detail reasonably satisfactory
to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name
and address of the beneficiary thereof; (E) the

32

 

documents to be presented by such
beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such other matters
as the L/C Issuer may require. In the case of a request for an amendment of any outstanding
Letter of Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date
of amendment thereof (which shall be a Business Day); (C) the nature of the proposed
amendment; and (D) such other matters as the L/C Issuer may require. Additionally, the
Borrower shall furnish to the L/C Issuer and the Administrative Agent such other documents
and information pertaining to such requested Letter of Credit issuance or amendment,
including any Issuer Documents, as the L/C Issuer or the Administrative Agent may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if
not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the
L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in Article
IV shall not then be satisfied, then, subject to the terms and conditions hereof, the
L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the
Borrower or the applicable Restricted Subsidiary, as the case may be, or enter into the
applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices. Immediately upon the issuance of each Letter of
Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount
equal to the product of such Lender’s Applicable Percentage times the amount of such
Letter of Credit.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that
has automatic extension provisions (each, an “Auto-Extension Letter of Credit”);
provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such extension at least once in each twelve-month period (commencing with
the date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each
such twelve-month period to be agreed upon at the time such Letter of Credit is issued.
Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such extension. Once an Auto-Extension Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but may not require)
the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry
date not later than the Letter of Credit Expiration Date; provided, however,
that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to issue such
Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the
provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has
received notice (which may be by telephone or in writing) on or before the day that is five

33

 

Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that
the Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the Borrower that one or more of the applicable
conditions specified in Section 4.02 is not then satisfied, and in each such case
directing the L/C Issuer not to permit such extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true and complete
copy of such Letter of Credit or amendment.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof. Not later than noon on the date of any payment by the L/C
Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower
shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time,
the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of
the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Applicable Percentage thereof. In such event, the Borrower shall be deemed to have
requested a Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an
amount equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans, but subject
to the amount of the unutilized portion of the Aggregate Commitments and the conditions set
forth in Section 4.02 (other than the delivery of a Committed Loan Notice). Any
notice given by the L/C Issuer or the Administrative Agent pursuant to this Section
2.03(c)(i) may be given by telephone if immediately confirmed in writing;
provided that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer at the
Administrative Agent’s Office in an amount equal to its Applicable Percentage of the
Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by
the Administrative Agent, whereupon, subject to the provisions of Section
2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a
Base Rate Committed Loan to the Borrower in such amount. The Administrative Agent shall
remit the funds so received to the L/C Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in Section
4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate. In such event,

34

 

each Lender’s payment
to the Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

     (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be
solely for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.03(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, the Borrower or any other Person for any
reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed Loans
pursuant to this Section 2.03(c) is subject to the conditions set forth in
Section 4.02 (other than delivery by the Borrower of a Committed Loan Notice). No
such making of an L/C Advance shall relieve or otherwise impair the obligation of the
Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer
under any Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking
industry rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the L/C Issuer in connection with the foregoing. If such Lender
pays such amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or L/C
Advance in respect of the relevant L/C Borrowing, as the case may be. A certificate of the
L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Borrower or otherwise, including proceeds of

35

 

Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such Lender’s L/C
Advance was outstanding) in the same funds as those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the
circumstances described in Section 10.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect. The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of this Agreement.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer
for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement regardless of any circumstances, including any of the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that the
Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), the L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under
such Letter of Credit;

     (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

36

 

     (v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower or any Subsidiary.

     The Borrower or the applicable Restricted Subsidiary that is the account party thereon, as the
case may be, shall promptly examine a copy of each Letter of Credit and each amendment thereto that
is delivered to it and, in the event of any claim of noncompliance with the Borrower’s or such
Restricted Subsidiary’s instructions or other irregularity, the Borrower or such Restricted
Subsidiary will immediately notify the L/C Issuer. The Borrower and any such Restricted Subsidiary
shall be conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant
or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document
or instrument related to any Letter of Credit or Issuer Document. The Borrower and each Loan
Party hereby assume all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower or a Loan Party, as the case
may be, pursuing such rights and remedies as it may have against the beneficiary or transferee at
law or under any other agreement. None of the L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall
be liable or responsible for any of the matters described in clauses (i) through (v) of
Section 2.03(e); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrower or a Loan Party, as the case may be, may have a claim
against the L/C Issuer, and the L/C Issuer may be liable to the Borrower or a Loan Party, as the
case may be, to the extent, but only to the extent, of any direct, as opposed to consequential or
exemplary, damages suffered by the Borrower or such Loan Party, as the case may be, which the
Borrower or such Loan Party proves were caused by the L/C Issuer’s
willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any
Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the
validity or sufficiency of any instrument transferring or assigning or purporting to transfer or
assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason. The L/C Issuer shall deliver
to the Borrower or a Restricted Subsidiary, as the case may be, copies of any documents purporting
to assign or transfer a Letter of Credit issued for the account of the Borrower or such Restricted

37

 

Subsidiary. The failure of L/C Issuer to deliver such documents will not relieve the Borrower or
any Restricted Subsidiary of its obligations hereunder or under the other Loan Documents.

     (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing and the conditions set forth in Section 4.01 to a
Committed Borrowing cannot then be met, or (ii) if, as of the Letter of Credit Expiration Date,
any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. Sections
2.05 and 8.02(c) set forth certain additional requirements to deliver Cash Collateral
hereunder. For purposes of this Section 2.03, Section 2.05 and Section
8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and the L/C Issuer (which documents are hereby consented
to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower hereby
grants to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security
interest in all such cash, deposit accounts and all balances therein and all proceeds of the
foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing deposit accounts
at Bank of America and may be invested in cash equivalents. If at any time during which Cash
Collateral is required to be maintained in respect of L/C Obligations, the Administrative Agent
determines that any funds held as Cash Collateral are subject to any right or claim of any Person
other than the Administrative Agent or that the total amount of such funds is less than the
aggregate Outstanding Amount of all L/C Obligations, the Borrower will, forthwith upon demand by
the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as
Cash Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y)
the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent
determines to be free and clear of any such right and claim. Upon the drawing of any Letter of
Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the
extent permitted under applicable Laws, to reimburse the L/C Issuer. To the extent that the
amount of any Cash Collateral exceeds the then Outstanding Amount of L/C Obligations and so long
as no Event of Default has occurred and is continuing, the excess shall be refunded to the
Borrower.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C
Issuer and the Borrower, when a Letter of Credit is issued, (i) the Borrower may specify that
either the rules of the ISP or the rules of the Uniform Customs and Practice for Documentary
Credits (“UCP”), as most recently published by the International Chamber of Commerce at
the time of issuance, apply to each standby Letter of Credit, and (ii) the rules of the UCP shall
apply to each commercial Letter of Credit.

     (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for
the account of each Lender in accordance with its Applicable Percentage a Letter of Credit fee
(the “Letter of Credit Fee”) for each Letter of Credit issued for the account of the
Borrower or a Restricted Subsidiary, as the case may be, equal to the Applicable Rate with respect
to Eurodollar Rate Loans times the daily amount available to be drawn under such Letter of
Credit on a quarterly basis in arrears. For purposes of computing the daily amount available to

38

 

be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. Letter of Credit Fees shall be (i) computed on a quarterly
basis in arrears and (ii) due and payable on the tenth Business Day after the end of each March,
June, September and December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there
is any change in the Applicable Rate during any quarter, the daily maximum amount of each Letter
of Credit shall be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect. Notwithstanding anything to the
contrary contained herein, upon the request of Administrative Agent or the Required Lenders, while
any Obligation bears interest at the Default Rate pursuant to Section 2.08(b), all Letter
of Credit Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee with respect to
each Letter of Credit issued for the account of the Borrower or a Restricted Subsidiary, as the
case may be, equal to the greater of (i) $125 or (ii) one-eighth percent (0.125%) per annum,
computed on the daily maximum amount available to be drawn under such Letter of Credit (whether or
not such maximum amount is then in effect under such Letter of Credit) and on a quarterly basis in
arrears, and due and payable on the tenth Business Day after the end of each March, June,
September and December, commencing with the first such date to occur after the issuance of such
Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes
of computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In addition, the
Borrower shall pay directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and charges, of the
L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any
and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the
issuance of Letters of Credit for the account of Restricted Subsidiaries inures to the
benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the
businesses of such Restricted Subsidiaries.

     2.04 Swing Line Loans.

     (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing
Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this
Section 2.04, to make loans (each such loan, a “Swing Line Loan”) to the Borrower
from time to time on any Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the

39

 

fact
that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding
Amount of Committed Loans and L/C Obligations of the Lender acting as Swing Line Lender, may
exceed the amount of such Lender’s Commitment; provided, however, that after
giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
shall not exceed such Lender’s Commitment, and provided, further, that the
Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line
Loan. Within the foregoing limits, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.04, prepay under Section 2.05, and
reborrow under this Section 2.04. Each Swing Line Loan shall be a Base Rate Loan.
Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such Lender’s
Applicable Percentage times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the
Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be
given by telephone. Each such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify
(i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the requested
borrowing date, which shall be a Business Day. Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line
Loan Notice, appropriately completed and signed by a Responsible Officer of General Partner.
Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the
Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.
Unless the Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. on the date of
the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line
Loan as a result of the limitations set forth in the proviso to the first sentence of Section
2.04(a), or (B) that one or more of the applicable
conditions specified in Article IV is not then satisfied, then, subject to the terms
and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date
specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the
Borrower at its office by crediting the account of the Borrower on the books of the Swing Line
Lender in immediately available funds.

     (c) Refinancing of Swing Line Loans.

     (i) The Swing Line Lender at any time in its sole and absolute discretion may request,
on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to so
request on its behalf), that each Lender make a Base Rate Committed Loan in an amount equal
to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding.
Such request shall be made in writing (which written request

40

 

shall be deemed to be a
Committed Loan Notice for purposes hereof) and in accordance with the requirements of
Section 2.02, without regard to the minimum and multiples specified therein for the
principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate
Commitments and the conditions set forth in Section 4.02. The Swing Line Lender
shall furnish the Borrower with a copy of the applicable Committed Loan Notice promptly
after delivering such notice to the Administrative Agent. Each Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Committed Loan Notice
available to the Administrative Agent in immediately available funds for the account of the
Swing Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day
specified in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii),
each Lender that so makes funds available shall be deemed to have made a Base Rate Committed
Loan to the Borrower in such amount. The Administrative Agent shall remit the funds so
received to the Swing Line Lender.

     (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Committed
Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate Committed
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request
by the Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the
account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed
payment in respect of such participation.

     (iii) If any Lender fails to make available to the Administrative Agent for the account
of the Swing Line Lender any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the Swing Line Lender at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with
banking industry rules on interbank compensation, plus any administrative, processing or
similar fees customarily charged by the Swing Line Lender in connection with the foregoing.
If such Lender pays such amount (with interest and
fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan
included in the relevant Committed Borrowing or funded participation in the relevant Swing
Line Loan, as the case may be. A certificate of the Swing Line Lender submitted to any
Lender (through the Administrative Agent) with respect to any amounts owing under this
clause (iii) shall be conclusive absent manifest error.

     (iv) Each Lender’s obligation to make Committed Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be
absolute and unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may have against
the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however,

41

 

that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Borrower to repay
Swing Line Loans, together with interest as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line
Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage thereof
in the same funds as those received by the Swing Line Lender.

     (ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line Lender under
any of the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate. The Administrative Agent
will make such demand upon the request of the Swing Line Lender. The obligations of the
Lenders under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

     (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line Loans. Until each Lender
funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.04 to
refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.

     (f) Payments Directly to Swing Line Lender. The Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

     2.05 Prepayments.

     (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Committed Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later than
(A) noon three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) 11:00
a.m. on the date of prepayment of Base Rate Committed Loans; (ii) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof or, if less, the outstanding amount of such Loans; and (iii) any prepayment of Base Rate
Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.
Each such notice shall specify the date and amount of such prepayment and the Type(s) of Committed
Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such
Loans. The Administrative Agent will promptly notify

42

 

each Lender of its receipt of each such
notice and the amount of such Lender’s Applicable Percentage of such prepayment. If such notice is
given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein. Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to Section 3.05. Each such prepayment shall be
applied to the Committed Loans of the Lenders in accordance with their respective Applicable
Percentages. Notwithstanding anything herein to the contrary, the Borrower may rescind any notice
of prepayment under this Section 2.05(a) not later than 1:00 p.m. on the Business Day
before such prepayment was scheduled to take place if such prepayment would have resulted from a
refinancing of the Committed Loans, which refinancing shall not be consummated or shall otherwise
be delayed.

     (b) The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by the Swing
Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment,
and (ii) any such prepayment shall be in a minimum principal amount of $100,000 or, if less, the
entire principal amount of Swing Line Loans then outstanding. Each such notice shall specify the
date and amount of such prepayment. If such notice is given by the Borrower, the Borrower shall
make such prepayment and the payment amount specified in such notice shall be due and payable on
the date specified therein.

     (c) If for any reason the Outstanding Amount of all Loans at any time exceeds the Aggregate
Commitments then in effect, the Borrower shall within one Business Day following demand by the
Administrative Agent prepay the Loans in an aggregate amount equal to such excess.

     (d) On the date (or the next succeeding Business Day if such date is not a Business Day) that
any Net Proceeds become Excess Sale Proceeds, (i) the Borrower shall make a mandatory prepayment of
the principal of the Loans in the amount of the Excess Sale Proceeds,
and (ii) the Aggregate Commitments shall be reduced, dollar for dollar, by the amount of such
Excess Sale Proceeds provided, however, that prepayments and the corresponding reduction in
Aggregate Commitments under this Section 2.05(d) shall not be required until the aggregate
amount of unapplied Net Proceeds and unapplied Extraordinary Receipts exceeds $5,000,000.

     (e) Any Extraordinary Receipts shall be immediately applied as a mandatory prepayment on the
Loans; provided, however, that prepayments under this Section 2.05(e) shall not be required
until the aggregate amount of unapplied Extraordinary Receipts and unapplied Net Proceeds exceeds
$5,000,000.

     (f) Immediately upon the consummation by any Loan Party of any issuance of Additional Debt
(but without waiving the requirements of Administrative Agent and/or any Lender’s consent to any
such issuance in violation of any Loan Document), the Borrower shall make a mandatory prepayment on
the Loans in an amount equal to the Net Proceeds from such issuance.

43

 

     (g) Each prepayment under Section 2.05(c), (d), (e) or (f)
shall be applied ratably as follows: (i) first to prepay the Outstanding Amount of the Committed
Loans, and (ii) second, to repay the Outstanding Amount of the Swing Line Loans.

     (h) Each prepayment of the Loans under Section 2.05(c), (d), (e) or
(f) shall be accompanied by all interest then accrued and unpaid on the principal so
prepaid, together with any additional amounts required pursuant to Section 3.05. Any
principal or interest prepaid pursuant to this Section shall be in addition to, and not in lieu of,
all payments otherwise required to be paid under the Loan Documents at the time of such prepayment.
Each such prepayment shall be applied to the Committed Loans or Swing Line Loans, as applicable,
of the Lenders in accordance with their respective Applicable Percentage of such Committed Loans or
Swing Line Loans.

     2.06 Termination or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce
the Aggregate Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than noon five Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not terminate or reduce
the Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving
effect to any reduction of the Aggregate Commitments, the Swing Line Sublimit exceeds the amount of
the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such
excess. The Administrative Agent will promptly notify the Lenders of any such notice of
termination or reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Applicable Percentage. All fees
accrued until the effective date of any termination of the Aggregate Commitments shall be paid
on the effective date of such termination. Notwithstanding anything herein to the contrary,
the Borrower may rescind any notice of termination of Aggregate Commitments under this Section
2.06 not later than 1:00 p.m. on the Business Day before such termination was scheduled to take
place if such termination would have resulted from a refinancing of the Aggregate Commitments,
which refinancing shall not be consummated or shall otherwise be delayed

     2.07 Repayment of Loans.

     (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal
amount of Committed Loans outstanding on such date.

     (b) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten
Business Days after such Loan is made and (ii) the Maturity Date.

     2.08 Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate with

44

 

respect to Eurodollar Rate Loans; (ii) each Base Rate Committed Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal
to the Base Rate plus the Applicable Rate with respect to Base Rate Loans; and (iii) each
Swing Line Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable
Rate with respect to Base Rate Loans.

     (b) (i) If any amount of principal of any Loan is not paid when due (after giving effect to
any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such
amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal
to the Default Rate to the fullest extent permitted by applicable Laws.

     (ii) If any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (after giving effect to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, then upon the request of the
Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate
per annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

     (iii) Upon the request of the Administrative Agent or Required Lenders, after an Event
of Default under Section 8.01(a) shall have occurred and be continuing, the Borrower
shall pay interest on the principal amount of all outstanding Obligations hereunder at a
fluctuating interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws and shall continue to pay interest at such
rate until but excluding the date on which such Event of Default is cured or waived
(and thereafter the Pricing Level otherwise applicable shall apply).

     (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall
be due and payable in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

     2.09 Fees. In addition to certain fees described in subsections (i) and (j)
of Section 2.03:

     (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to the
Applicable Rate with respect to Commitment Fees times the actual daily amount by which the
Aggregate Commitments exceed the Outstanding Amount of Committed Loans and L/C Obligations (but
excluding, for the avoidance of doubt, the Swing Line Loans); provided, however
that any commitment fee accrued with respect to the Commitment of a Lender that has failed to fund
any portion of the Committed Loans required to be funded by it hereunder within one Business Day
of the date required to be funded by it hereunder shall not be payable

45

 

by the Borrower until such
time as such failure has been cured. The commitment fees shall accrue at all times during the
Availability Period, including at any time during which one or more of the conditions in
Article IV are not met, and shall be due and payable quarterly in arrears on the tenth
Business Day after each March, June, September and December, commencing with the first such date
to occur after the Closing Date, and on the last day of the Availability Period. The commitment
fees shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate
during any quarter, the actual daily amount shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate was in effect.

     (b) Other Fees.

     (i) The Borrower shall pay to the Arrangers, the Administrative Agent and the
Syndication Agent for their own respective accounts fees in the amounts and at the times
specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

     (ii) The Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified. Such fees shall be
fully earned when paid and shall not be refundable for any reason whatsoever.

     2.10 Computation of Interest and Fees. All computations of interest for Base Rate Loans when
the Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees
and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.12(a), bear interest for one day. Each determination by the Administrative Agent
of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent
manifest error.

     2.11 Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business in accordance with its usual practice. The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of
the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon.
Any failure to so record or any error in doing so shall not, however, limit or otherwise affect
the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.
In the event of any conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest error. Upon the
request of any Lender made through the Administrative Agent, the Borrower shall execute and
deliver to such Lender (through the

46

 

Administrative Agent) a Note, which shall evidence such
Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its
Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and
payments with respect thereto.

     (b) In addition to the accounts and records referred to in Section 2.11(a), each Lender and
the Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing
Line Loans. In the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

     2.12 Payments Generally; Administrative Agent’s Clawback.

     (a) General. All payments to be made by the Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office. All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day
and any applicable interest or fee shall continue to accrue. If any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be; except that this sentence shall not apply to the Maturity Date.

     (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Committed Borrowing of Eurodollar Rate Loans (or, in the case of any Committed Borrowing of Base
Rate Loans, prior to noon on the date of such Committed Borrowing) that such Lender will not make
available to the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base Rate Loans,
that such Lender has made such share available in accordance with and at the time required by
Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in immediately available funds with interest thereon, for each day from and including the
date such amount is made available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of
the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation, plus any administrative, processing or similar
fees

47

 

customarily charged by the Administrative Agent in connection with the foregoing, and (B) in
the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.
If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same
or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount
of such interest paid by the Borrower for such period. If such Lender pays its share of the
applicable Committed Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Committed Loan included in such Committed Borrowing. Any payment by the
Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall
have failed to make such payment to the Administrative Agent.

     (ii) Payments by the Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which any
payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuer
hereunder that the Borrower will not make such payment, the Administrative Agent may assume
that the Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the amount
due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or
the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender or the L/C Issuer, in immediately available
funds with interest thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal
Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the Borrower by
the Administrative Agent because the conditions to the applicable Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not joint. The failure of any
Lender to make any Committed Loan, to fund any such participation or to make any payment under
Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible for the failure
of any other Lender to so make its Committed Loan, to purchase its participation or to make its
payment under Section 10.04(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation

48

 

by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     (f) Insufficient Funds. If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first, toward
payment of interest and fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees then due to such parties, and (ii)
second, toward payment of principal and L/C Borrowings then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and L/C Borrowings then
due to such parties.

     2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of the Committed Loans made by it, or the
participations in L/C Obligations or in Swing Line Loans held by it resulting in such Lender’s
receiving payment of a proportion of the aggregate amount of such Committed Loans or participations
and accrued interest thereon greater than its pro rata share thereof as provided
herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent
of such fact, and (b) purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Committed Loans and other amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing
Line Loans to any assignee or participant, other than to the Borrower or any Subsidiary
thereof (as to which the provisions of this Section shall apply).

     Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

     2.14 Increase in Commitments.

     (a) Request for Increase. Provided there exists no Default, without the consent of
the Lenders and upon notice to the Administrative Agent (which shall promptly notify the

49

 

Lenders),
the Borrower may from time to time, request an increase in the Aggregate Commitments (as
determined by the Borrower but subject to the approval of the Administrative Agent (such approval
not to be unreasonably withheld or delayed)) by an amount that will not cause the Aggregate
Commitments to be greater than the sum of (i) the Aggregate Commitments on the Closing Date, plus
(ii) $250,000,000; provided that any such request for an increase shall be in a minimum
amount of $5,000,000. At the time of sending such notice, the Borrower may request all or part of
such increase from the existing Lenders and if it does so, shall specify (in consultation with the
Administrative Agent) the time period
within which each Lender is requested to respond (which shall in no event be less than ten
Business Days from the date of delivery of such notice to the Lenders).

     (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent
within such time period whether or not it agrees to increase its Commitment and, if so, whether by
an amount equal to, greater than, or less than its Applicable Percentage of such requested
increase. Any Lender not responding within such time period shall be deemed to have declined to
increase its Commitment.

     (c) Notification by Administrative Agent; Additional Lenders. The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made
hereunder. To achieve the full amount of a requested increase and subject to the approval of the
Administrative Agent, the L/C Issuer and the Swing Line Lender (which approvals shall not be
unreasonably withheld or delayed), the Borrower may also invite additional Eligible Assignees to
become Lenders pursuant to a joinder agreement in form and substance reasonably satisfactory to
the Administrative Agent and its counsel. It shall not be a condition to obtaining an increase in
the Aggregate Commitments that the full amount of such increase requested by the Borrower be
approved by the Lenders or any additional Eligible Assignees. If less than the full amount of the
increase requested by the Borrower is approved by the Lenders and any additional Eligible
Assignee, the Borrower may, at its option, accept the amount of the increase so approved, or the
Borrower may withdraw its request for such increase.

     (d) Effective Date and Allocations. If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation of such increase.
The Administrative Agent shall promptly notify the Borrower and the Lenders of the final amount
and allocation of such increase and the Increase Effective Date.

     (e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party
dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by
such Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower,
certifying that, before and after giving effect to such increase, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and correct in all
material respects on and as of the Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Section 2.14,
the

50

 

representations and warranties contained in subsection (a) of Section 5.05
shall be deemed to refer to the most recent statements furnished pursuant to clauses (a)
and (b) of Section 6.01, and (B) no Default exists. The Borrower shall prepay any
Committed Loans outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep the outstanding
Committed Loans ratable with any revised Applicable Percentages arising from any nonratable
increase in the Commitments under this Section.

     (f) Conflicting Provisions. This Section shall supersede any provisions in
Section 2.13 or 10.01 to the contrary.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that
if the Borrower shall be required by applicable law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives
an amount equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to the Borrower
by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent
manifest error.

     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to
the Administrative Agent the original or a certified copy of a receipt issued by

51

 

such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Administrative Agent.

     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to
payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to
the Administrative Agent), at the time or times prescribed by applicable law or reasonably
requested by the Borrower or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the
Borrower or the Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable
the Borrower or the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

     Without limiting the generality of the foregoing, in the event that the Borrower is resident
for tax purposes in the United States, any Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN, or

     (iv) any other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable law to permit the Borrower to
determine the withholding or deduction required to be made.

     (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or the L/C
Issuer determines, in its sole discretion, that it has received a refund of any Taxes or Other
Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower
has paid additional amounts pursuant to this Section, it shall pay to the Borrower an

52

 

amount equal
to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by
the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent, such Lender or the L/C
Issuer, as the case may be, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that the Borrower, upon the
request of the Administrative Agent, such Lender or the L/C Issuer, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the
L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to
repay such refund to such Governmental Authority. This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make available its tax returns
(or any other information relating to its taxes that it deems confidential) to the Borrower or any
other Person.

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates
based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base
Rate Committed Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of
such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such
Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or
converted.

     3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market
for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan , or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly
reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so
notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of
the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke
any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for a Committed
Borrowing of Base Rate Loans in the amount specified therein.

53

 

     3.04 Increased Costs; Reserves on Eurodollar Rate Loans.

     (a) Increased Costs Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)) or the L/C Issuer;

     (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the L/C Issuer); or

     (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining
any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer
hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or
the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be,
for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender
or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or

54

 

its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such
Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate
within ten (10) days after receipt thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or the L/C Issuer, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the
nine-month period referred to above shall be extended to include the period of retroactive effect
thereof).

     (e) Reserves on Eurodollar Rate Loans. The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith, which determination shall be conclusive), which shall be due and
payable on each date on which interest is payable on such Loan, provided the Borrower
shall have received at least ten (10) days’ prior notice (with a copy to the Administrative Agent)
of such additional interest from such Lender. If a Lender fails to give notice ten (10) days
prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten
(10) days from receipt of such notice.

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or
in the amount notified by the Borrower; or

     (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest
Period therefor as a result of a request by the Borrower pursuant to Section 10.13;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained.

55

 

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

     3.06 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or
if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use
reasonable efforts to designate a different Lending Office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in
the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable,
and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if any Lender delivers to the Borrower a notice pursuant to Section 3.02, or if the
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 3.01, the Borrower may replace such Lender
in accordance with Section 10.13.

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each Lender to
make its initial Credit Extension hereunder is subject to satisfaction of the following conditions
precedent:

     (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly executed by
a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent and each of the Lenders:

     (i) executed counterparts of this Agreement and the Guaranty, sufficient in number for
distribution to the Administrative Agent, each Lender and the Borrower;

56

 

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) the Pledge and Security Agreement duly executed by each Loan Party; together
with:

     (A) certificates, if any, representing the Pledged Shares referred to in the
Pledge and Security Agreement accompanied by undated stock powers executed in blank,

     (B) proper Financing Statements in form appropriate for filing under the UCC of
all jurisdictions that the Administrative Agent and Collateral Agent may deem
necessary in order to perfect the Liens created under the Pledge and Security
Agreement, covering the Collateral described in the Pledge and Security Agreement,

     (C) completed requests for information, dated on or before the date of the
initial Credit Extension, listing all effective financing statements filed in the
jurisdictions referred to in clause (B) above that name any Loan Party as debtor,
together with copies of such other financing statements,

     (D) evidence of the completion of all other actions, recordings and filings of
or with respect to the Pledge and Security Agreement that the Administrative Agent
or Collateral Agent may deem necessary in order to perfect the Liens created
thereby, and

     (E) evidence that all other action that the Administrative Agent and Collateral
Agent may deem necessary or desirable in order to perfect the Liens created under
the Pledge and Security Agreement has been taken (including receipt of duly executed
payoff letters, UCC-3 termination statements and landlords’ and bailees’ waiver and
consent agreements);

     (iv) deeds of trust, mortgages, leasehold deeds of trust and leasehold mortgages, in
substantially the form of Exhibit I (with such changes as may be reasonably
satisfactory to the Administrative Agent and Collateral Agent and their counsel to account
for local law matters) and covering substantially all of the operating assets of the
Borrower and its Subsidiaries owned on the Closing Date (together with the Assignments of
Leases and Rents referred to therein and each other mortgage delivered
pursuant to Section 6.13, in each case as amended, the “Mortgages”),
duly executed by the appropriate Loan Party, together with:

     (A) evidence that counterparts of the Mortgages have been duly executed,
acknowledged and delivered and are in form suitable for filing or recording in all
filing or recording offices that the Administrative Agent and Collateral Agent may
deem necessary or desirable in order to create a valid first and subsisting Lien on
the property described therein in favor of the Collateral Agent for the benefit of
the Secured Parties and that all filing, documentary,

57

 

stamp, intangible and
recording taxes and fees have been or will be paid upon recording,

     (B) in respect of the Chico Plant a fully paid title insurance policy (the
“Mortgage Policies”) in form and substance, with endorsements and in amounts
reasonably acceptable to the Administrative Agent and Collateral Agent, issued,
coinsured and reinsured by title insurers reasonably acceptable to the
Administrative Agent and Collateral Agent, insuring the Mortgage in respect of such
property to be valid first and subsisting Liens on the property described therein,
free and clear of all defects (including, but not limited to, mechanics’ and
materialmen’s Liens) and encumbrances, excepting only Liens permitted under the Loan
Documents, and providing for such other affirmative insurance (including
endorsements for future advances under the Loan Documents and for mechanics’ and
materialmen’s Liens) and such coinsurance and direct access reinsurance as the
Administrative Agent may deem necessary or desirable, and

     (C) evidence that all other action that the Administrative Agent and Collateral
Agent may deem necessary or desirable in order to create valid first and subsisting
Liens on the property described in the Mortgages has been taken;

     (v) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Loan Party as the Administrative Agent
may reasonably require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party;

     (vi) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and that each Loan
Party is validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification;

     (vii) a favorable opinion of Bracewell & Giuliani LLP, counsel to the Loan Parties,
addressed to the Administrative Agent and each Lender, as to the matters set forth in
Exhibit G and such other matters concerning the Loan Parties and the Loan Documents
as the Administrative Agent may reasonably request;

     (viii) the Initial Financial Statements;

     (ix) certificates or binders evidencing Loan Parties’ insurance in effect on the date
hereof naming the Collateral Agent as loss payee and additional insured;

     (x) a certificate signed by a Responsible Officer of General Partner certifying (A)
that the conditions specified in Sections 4.02(a) and (b) have been
satisfied; (B) that there has been no event or circumstance since September 30, 2006 that
has had or could be reasonably expected to have, either individually or in the aggregate, a
Material Adverse Effect; and (C) a calculation of the Consolidated Leverage Ratio as of the
Closing Date demonstrating that such ratio does not exceed 5.0 to 1.0;

58

 

     (xi) a certificate attesting to the Solvency of the Loan Parties (taken as a whole)
after giving effect to the Acquisition and the Initial Public Offering, from the chief
financial officer, chief accounting officer, treasurer or controller of General Partner; and

     (xii) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders
reasonably may require.

     (b) (i) All fees required to be paid to the Administrative Agent, the Syndication Agent and
the Arrangers on or before the Closing Date shall have been paid and (ii) all fees required to be
paid to the Lenders on or before the Closing Date shall have been paid.

     (c) Unless waived by the Administrative Agent, the Borrower shall have paid all fees, charges
and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus such
additional amounts of such fees, charges and disbursements as shall constitute its reasonable
estimate of such fees, charges and disbursements incurred or to be incurred by it through the
closing proceedings (provided that such estimate shall not thereafter preclude a final settling of
accounts between the Borrower and the Administrative Agent).

     (d) The Intercreditor Agreement shall have been duly executed and delivered by each party
thereto, and shall be in full force and effect.

     (e) The corporate and capital structure of the Borrower shall be as disclosed in the
Registration Statement.

     (f) The consummation of the Initial Public Offering shall have occurred on substantially the
terms as contained in the Registration Statement.

     (g) The Borrower shall have received sufficient proceeds from the Initial Public Offering to
finance that portion of the Acquisition not funded by the use of proceeds from this Agreement.

     (h) (i) The Borrower has received all governmental, shareholder and third party consents and
approvals necessary to consummate the Initial Public Offering, which consents and approvals are in
full force and effect, (ii) no order, decree, judgment, ruling or injunction exists which
restrains the consummation of the Initial Public Offering or the transactions
contemplated by this Agreement, and (iii) there is no pending, or to the knowledge of the
Borrower, threatened, action, suit, investigation or proceeding which seeks to restrain or affect
the Initial Public Offering, or which, if adversely determined, could materially and adversely
affect the ability of the Borrower to consummate the Initial Public Offering.

     (i) Concurrently with the consummation of the Initial Public Offering, (i) all outstanding
Intercompany Indebtedness shall have been repaid or forgiven and (ii) that portion of the loans
made under the Targa Credit Agreement with respect to the assets owned by Targa North Texas and
acquired in the Acquisition shall have been repaid and arrangements

59

 

satisfactory to the
Administrative Agent shall have been made for the release of the Liens securing same.

     (j) The Closing Date shall have occurred on or before March 15, 2007.

     Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

     4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for
Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed
Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following
conditions precedent:

     (a) The representations and warranties of the Borrower and each other Loan Party contained in
Article V or any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such Credit Extension, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they shall be
true and correct as of such earlier date, and except that for purposes of this Section
4.02, the representations and warranties contained in subsection (a) of Section
5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses
(a) and (b) of Section 6.01.

     (b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

     (c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender
shall have received a Request for Credit Extension in accordance with the requirements hereof.

     Each Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Committed Loans to the other Type or a continuation of Eurodollar Rate Loans)
submitted by the Borrower shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of
the applicable Credit Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and the Lenders that:

     5.01 Existence, Qualification and Power; Compliance with Laws. Each Loan Party and each Subsidiary
thereof (a) is duly organized or formed, validly existing and, as applicable, in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has

60

 

all requisite
power and authority and all requisite governmental licenses, authorizations, consents and approvals
to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its
obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed
and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such qualification or license,
and (d) is in compliance with all Laws (excluding Environmental Laws that are the subject of
Section 5.09, federal, state and local income tax Laws that are the subject of Section
5.11 and ERISA that is the subject of Section 5.12); except in each case referred to in
clause (b)(i), (c) or (d), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party, have been duly authorized by all necessary
corporate or other organizational action, and do not and will not (a) contravene the terms of any
of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention
of, or the creation of any Lien under (other than Liens permitted by the Loan Documents), or
require any payment to be made under (i) any Contractual Obligation (other than the Loan Documents)
to which such Person is a party or affecting such Person or the properties of such Person or any of
its Subsidiaries or (ii) any material order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is subject; or (c) violate any
material Law. Each Loan Party is in compliance with all Contractual Obligations referred to in
clause (b)(i), except to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect.

     5.03 Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or
other action by, or notice to, or filing with, any Governmental Authority or any other Person is
necessary or required in connection with (a) the execution, delivery or performance by, or
enforcement against, any Loan Party of this Agreement or any other Loan Document, (b) the grant by
any Loan Party of the Liens granted by it pursuant to the Security Documents, (c) the perfection or
maintenance of the Liens created under the Security Documents (including the first priority nature
thereof) or (d) the exercise by the Administrative Agent or any Lender of its rights under the Loan
Documents or the remedies in respect of the Collateral pursuant to the Security Documents, except
for (i) filings necessary to perfect and maintain the perfection of the Liens on the Collateral
granted by the Loan Parties in favor of the Lenders, (ii) the authorizations, approvals, actions,
notices and filings which have
been duly obtained, taken, given or made and are in full force and effect and (iii) those
approvals, consents, exemptions, authorizations or other action, notices or filings, the failure of
which to obtain or make could not reasonably be expected to have a Material Adverse Effect.

     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, except as such enforceability may be limited by Debtor
Relief Laws and by general principles of equity.

61

 

     5.05 Financial Statements; No Material Adverse Effect.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present in all material respects the financial condition of the predecessor business of the
Borrower and its Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness and
other liabilities, direct or contingent, of the predecessor business of the Borrower and its
Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and
Indebtedness that would be required to be disclosed in Consolidated financial statements of the
Borrower or the footnotes thereto prepared in accordance with GAAP.

     (b) The unaudited pro forma Consolidated financial statements of the Borrower and its
Consolidated Subsidiaries as of September 30, 2006 (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present in all material respects the Consolidated pro forma financial
condition of the Borrower and its Consolidated Subsidiaries (after giving effect to the
Acquisition) as of the date thereof and their Consolidated pro forma results of operations for the
period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes
and to normal year-end audit adjustments. As of the Closing Date, all material indebtedness and
other liabilities, direct or contingent, of the Borrower and its Consolidated Subsidiaries as of
the date of such financial statements, including liabilities for taxes, material commitments and
Indebtedness, are disclosed in the Initial Financial Statements.

     (c) Since September 30, 2006, there has been no event or circumstance, either individually or
in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the
Borrower, threatened in writing, at law, in equity, in arbitration or before any Governmental
Authority, against any Loan Party or any Subsidiary thereof or against any of their properties or
revenues, or that is contemplated by any Loan Party against any other Person that (a) purport to
affect or pertain to this Agreement or any other Loan Document, or any of the transactions
contemplated hereby, or (b) either individually or in the aggregate, if determined adversely,
could reasonably be expected to have a Material Adverse Effect.

     5.07 No Default. Neither any Loan Party nor any Restricted Subsidiary thereof is in default under
or with respect to any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing or would result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.

     5.08 Ownership of Property; Liens. Each Loan Party and each Restricted Subsidiary thereof has (or
on the Closing Date, will have) (i) good and defensible fee simple title to or valid leasehold
interests, or valid easements or other property interests in, all of its real property and

62

 

good and
valid title to all of its personal property necessary in the ordinary conduct of its business,
except for such defects in title as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The property of the Loan Parties and any of their
Restricted Subsidiaries is subject to no Liens other than Liens permitted under Section
7.01. No material default exists under (i) any lease on any property on which a Mortgage is
granted, or (ii) any other lease, to the extent such default would reasonably be expected to have a
Material Adverse Effect. All of the plants, offices, or facilities and other tangible assets
owned, leased or used by any Loan Party or any Restricted Subsidiary thereof in the conduct of
their respective businesses are (a) insured to the extent and in a manner required by Section
6.07, (b) structurally sound with no known defects which have or could reasonably be expected
to have a Material Adverse Effect, (c) in good operating condition and repair, subject to ordinary
wear and tear and except to the extent failure could not reasonably be expected to have a Material
Adverse Effect, (d) not in need of maintenance or repair except for ordinary, routine maintenance
and repair the cost of which is immaterial and except to the extent failure to so maintain and
repair could not reasonably be expected to have a Material Adverse Effect, (e) sufficient for the
operation of the businesses of such Loan Party and its Restricted Subsidiaries as currently
conducted, except to the extent failure to be so sufficient could not reasonably be expected to
have a Material Adverse Effect and (f) in conformity with all applicable laws, ordinances, orders,
regulations and other requirements (including applicable zoning, environmental, motor vehicle
safety, occupational safety and health laws and regulations) relating thereto, except where the
failure to conform could not reasonably be expected to have a Material Adverse Effect.

     5.09 Environmental Compliance(a) . The Borrower and its Restricted Subsidiaries periodically
conduct in the ordinary course of business a review of the effect of existing Environmental Laws
and claims
alleging potential liability or responsibility for violation of any Environmental Law on their
respective businesses, operations and properties, and as a result thereof the Borrower has
reasonably concluded that such Environmental Laws and claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of each Loan Party and each Subsidiary thereof are insured with
financially sound and reputable insurance companies not Affiliates of any Loan Party, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the applicable Loan
Party or Subsidiary operates.

     5.11 Taxes. Except as could not, either individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect, each Loan Party and each Restricted Subsidiary thereof has
filed all federal, state and other tax returns and reports required to be filed, and have paid all
federal, state and other taxes, assessments, fees and other governmental charges levied or imposed
upon them or their properties, income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings diligently conducted and for which
adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment
against any Loan Party or any Restricted Subsidiary thereof that would, if made, have a Material
Adverse Effect. No Loan Party nor any Restricted Subsidiary thereof is party to any tax sharing
agreement, except as provided in the Borrower’s Partnership Agreement or in the Omnibus Agreement.

63

 

     5.12 ERISA Compliance.

     (a) On the Closing Date, the Borrower has no Plans. Each Plan from time to time in effect
shall be in compliance in all material respects with the applicable provisions of ERISA, the Code
and other Federal or state Laws. Each such Plan that is intended to qualify under Section 401(a)
of the Code has received a favorable determination letter from the IRS or an application for such
a letter is currently being processed by the IRS with respect thereto and, to the best knowledge
of the Borrower, nothing has occurred which would prevent, or cause the loss of, such
qualification. Each Loan Party and each ERISA Affiliate have made all required contributions to
each Plan subject to Section 412 of the Code, and no application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan.

     (b) There are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to any Plan that has
resulted or could reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan
has any Unfunded Pension Liability; (iii) no Loan Party nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension
Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) no Loan Party
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event
has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) no
Loan Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Section
4069 or 4212(c) of ERISA.

     5.13 Subsidiaries; Equity Interests; Taxpayer Identification Number. Other than those specifically
disclosed in Part (a) of Schedule 5.13 or as disclosed from time to time pursuant to
Sections 6.12, the Borrower has no Subsidiaries and all of the outstanding Equity Interests
in the Borrower’s Subsidiaries have been validly issued, are fully paid and nonassessable and are
owned in the amounts so disclosed free and clear of all Liens other than the Liens created pursuant
to the Loan Documents. Set forth on Part (b) of Schedule 5.13, as of the Closing Date, as
supplemented by each report required to be delivered pursuant to Section 6.02(k), as of the
date of such report is: (i) a complete and accurate list of all Loan Parties showing as of such
date the jurisdiction of its formation, the address of its principal place of business, its U.S.
taxpayer identification number or, in the case of any non-U.S. Loan Party that does not have a U.S.
taxpayer identification number, its unique identification number issued to it by the jurisdiction
of its incorporation, and, for the preceding 5 years, any other jurisdiction of organization and
any other name (including any trade or fictitious name) used by such Loan Party, and (ii) a
complete and accurate list of the Investments of the type permitted by Sections 7.02(d),
(i) or (j) and Investments in Partially Owned Operating Companies. All of the
outstanding Equity Interests in the Borrower have been validly issued, are fully paid and
nonassessable, except with respect to additional contributions required to be made by General
Partner pursuant to the Borrower’s Partnership Agreement or applicable Law.

64

 

     5.14 Margin Regulations; Investment Company Act.

     (a) No Loan Party is engaged or will engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.

     (b) No Loan Party nor any Person Controlling any Loan Party nor any Subsidiary thereof is or
is required to be registered as an “investment company” under the Investment Company Act of 1940.

     5.15 Disclosure. Each Loan Party has disclosed to the Administrative Agent and the Lenders all
matters required to be disclosed pursuant to Section 6.03. No report, financial statement,
certificate or other written information furnished by or on behalf of any Loan Party to the
Administrative
Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of
this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished) when taken as a whole contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the time
of preparation; provided, further, that, with respect to pro forma financial
information, the Borrower represents only that such information was prepared in good faith and
reflects, in all material respects, such pro forma financial information is in accordance with
assumptions and requirements of GAAP for pro forma presentation and based upon such other
assumptions that are believed to be reasonable at the time of preparation and, to the extent
material, are disclosed as part of such pro forma financial information.

     5.16 Compliance with Laws. Each Loan Party and each Restricted Subsidiary thereof is in compliance
in all material respects with the requirements of all Laws (except for Environmental Laws that are
the subject of Section 5.09, federal and state income tax Laws that are the subject of
Section 5.11 and ERISA that is the subject of Section 5.12) and all orders, writs,
injunctions and decrees applicable to it or to its properties, except in such instances in which
(a) such requirement of Law or order, writ, injunction or decree is being contested in good faith
by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     5.17 Intellectual Property; Licenses, Etc. Each Loan Party and each Restricted Subsidiary thereof
own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights,
patents, patent rights, franchises, licenses and other intellectual property rights (collectively,
“IP Rights”) that are reasonably necessary for the operation of their respective businesses as
currently conducted, and, without conflict with the rights of any other Person, except to the
extent such conflict, either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect. To the best knowledge of the Borrower, no slogan or other
advertising device, product, process, method, substance, part or other material now employed, or
now contemplated to be employed, by any Loan Party or any

65

 

Restricted Subsidiary thereof infringes
upon any rights held by any other Person, except to the extent such conflicts, either individually
or in the aggregate, which could not reasonably be expected to have a Material Adverse Effect. No
claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the
Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

     5.18 Labor Disputes and Acts of God. Neither the business nor the properties of any Loan
Party or any Restricted Subsidiary thereof has been affected by any fire, explosion, accident,
strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of
the public enemy or other casualty
(whether or not covered by insurance), that either individually or in the aggregate could
reasonably be expected to have a Material Adverse Effect.

     5.19 Solvency. Upon giving effect to the execution of this Agreement and the other Loan
Documents by each Loan Party and the consummation of the transactions contemplated hereby and
thereby, each Loan Party will be Solvent.

     5.20 Credit Arrangements. No Affiliate of any Loan Party is party to or subject to any credit
agreement, loan agreement, indenture, purchase agreement, guaranty or other arrangement providing
for or otherwise relating to any Indebtedness or any extension of credit (or commitment for any
extension of credit) that creates by a covenant of such Affiliate or otherwise, any limitation or
restriction of any action of any Loan Party or any obligation that any Loan Party be caused to take
any action.

     5.21 Real Property. As of the Closing Date, Schedule 5.21 sets forth a description of each
material fee owned property owned by any Loan Party and each material parcel of real property
leased by any Loan Party (in both cases, other than the realty associated with the pipelines and
gathering systems and other than immaterial real property including, but not limited to, compressor
sites, pump stations and meter sites). All material pipelines, gathering systems and the realty
associated therewith owned by the Loan Parties as of the Closing Date are described in the
Registration Statement. The Borrower shall provide updates to Schedule 5.21 upon the
reasonable request of the Administrative Agent.

     5.22 Labor Matters. There are no collective bargaining agreements or Multiemployer Plans covering
the employees of any Loan Party or any Subsidiary thereof as of the Closing Date and except as
could not reasonably be expected to have a Material Adverse Effect, no Loan Party nor any
Subsidiary thereof has suffered any strikes, walkouts, work stoppages or other material labor
difficulty within the last five years.

     5.23 Security Documents. The provisions of the Security Documents are effective to create in favor
of the Collateral Agent for the benefit of the Secured Parties a legal, valid and enforceable first
priority Lien (subject to Liens permitted by Section 7.01) on all right, title and interest
of the respective Loan Parties in the Collateral described therein. Except for filings completed
prior to the Closing Date and as contemplated hereby and by the Collateral Documents from time to
time, no filing or other action will be necessary to perfect or protect such Liens.

66

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Restricted Subsidiary to:

     6.01 Financial Statements. Deliver to the Administrative Agent for further distribution to each
Lender:

     (a) as soon as available, but in any event within 30 days after the date on which the Borrower
is required under Securities Laws to file a Form 10-K annual report for each fiscal year of the
Borrower (commencing with the fiscal year ended December 31, 2007), a Consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year,
and the related Consolidated and consolidating statements of income or operations, partners’ equity
and cash flows for such fiscal year, setting forth in each case in comparative form the figures for
the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, such
consolidating statements to be for the Guarantors on a combined basis and the Borrower’s
Subsidiaries that are not Guarantors on a combined basis and such Consolidated statements to be
audited and accompanied by a report and opinion of an independent certified public accountant of
nationally recognized standing reasonably acceptable to the Administrative Agent, which report and
opinion shall be prepared in accordance with generally accepted auditing standards and applicable
Securities Laws and shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit; and

     (b) as soon as available, but in any event within 30 days after the date on which the Borrower
is required under Securities Laws to file a Form 10-Q quarterly reports for each of the first three
fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ended March
31, 2007), a Consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as
at the end of such fiscal quarter, and the related Consolidated and consolidating statements of
income or operations, partners’ equity and cash flows for such fiscal quarter and for the portion
of the Borrower’s fiscal year then ended, setting forth in each case in comparative form the
figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding
portion of the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP,
such consolidating statements to be for the Guarantors on a combined basis and the Borrower’s
Subsidiaries that are not Guarantors on a combined basis and such Consolidated statements to be
certified by the chief financial officer, chief accounting officer, treasurer or controller of the
Borrower as fairly presenting the financial condition, results of operations, partners’ equity and
cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes.

     6.02 Certificates; Other Information. Deliver to the Administrative Agent for further
distribution to each Lender:

67

 

     (a) no later than three (3) days after the delivery of the financial statements referred to in
Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer
of General Partner and stating that such officer has caused this Agreement to be reviewed and has
no knowledge of any Default by the Borrower in the performance or observance of any of the
provisions of this Agreement, during, or at the end of, as applicable, such fiscal year or fiscal
quarter, or, if such officer has such knowledge, specifying each Default and the nature thereof,
showing compliance by the Borrower as of the date of such statement with the financial covenants
set forth in Article VII, and calculations for such financial covenants shall be included,
and the other applicable covenants set forth in Exhibit D;

     (b) promptly after any request by the Administrative Agent or any Lender, copies of any
detailed audit reports, management letters or recommendations submitted to the board of directors
(or the audit committee of the board of directors) of the Borrower by independent accountants in
connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of
them;

     (c) promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the partners of the Borrower, and copies of all
annual, regular, periodic and special reports and registration statements which the Borrower may
file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act
of 1934, or with any national securities exchange, and in any case not otherwise required to be
delivered to the Administrative Agent pursuant hereto;

     (d) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or
possible investigation or other inquiry by such agency regarding financial or other operational
results of any Loan Party or any Subsidiary thereof;

     (e) promptly after the furnishing thereof, copies of any statement or report furnished to any
holder of debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any
indenture, loan or credit or similar agreement and not otherwise required to be furnished to the
Lenders pursuant to Section 6.01 or any other clause of this Section 6.02;

     (f) within five Business Days after (i) a Responsible Officer’s receipt of any written notice
of any violation by any Loan Party of any Environmental Law, (ii) a Responsible Officer’s
obtaining knowledge that any Governmental Authority has asserted that any Loan Party is not in
compliance with any Environmental Law or that any Governmental Authority is investigating any Loan
Party’s compliance therewith, (iii) a Responsible Officer’s receipt of any written notice from any
Governmental Authority or other Person or otherwise obtaining knowledge that any Loan Party is or
may be liable to any Person as a result of the Release or threatened Release of any Contaminant or
that any Loan Party is subject to investigation by any Governmental Authority evaluating whether
any remedial action is needed to respond to the Release or threatened Release of any Contaminant,
or (iv) a Responsible Officer’s receipt of any written notice of the imposition of any
Environmental Lien against any property of any Loan Party which in any event under clause (i),
(ii), (iii) or (iv) preceding could reasonably be expected to result in, or has resulted in,
liability, either individually or in the aggregate, in excess

68

 

of $10,000,000 or otherwise could reasonably be expected to have, or has resulted in, a
Material Adverse Effect, copies of such notice or a written notice setting forth the matters in
(ii) above;

     (g) not less than 3 Business Days prior to any change in any Loan Party’s (i) name as it
appears in the jurisdiction of its formation, incorporation, or organization, (ii) type of entity,
or (iii) organizational identification number, written notice thereof;

     (h) upon the Administrative Agent’s request, or, in the event that such filing reflects a
significant material adverse change with respect to the matters covered thereby, within three
Business Days after the filing thereof with the PBGC, the DOL, or the IRS, as applicable, copies of
the following: (i) each annual report (form 5500 series), including Schedule B thereto, filed with
the PBGC, the DOL, or the IRS with respect to each Plan; (ii) a copy of each funding waiver request
filed with the PBGC, the DOL, or the IRS with respect to any Plan and all communications received
by any Loan Party or any ERISA Affiliate from the PBGC, the DOL, or the IRS with respect to such
request; and (iii) a copy of each other filing or notice filed with the PBGC, the DOL, or the IRS,
with respect to each Plan by any Loan Party or any ERISA Affiliate;

     (i) as soon as available, but in any event within 90 days after the end of each fiscal year, a
business and financial plan for the Borrower (in form reasonably satisfactory to Administrative
Agent and based on assumptions believed to be reasonable in light of the circumstances at the time
when made), prepared or caused to be prepared by a Responsible Officer of General Partner, setting
forth for the then calendar year, financial projections, budgets and hedging schedules for the
Borrower and its Consolidated Subsidiaries;

     (j) not less than one Business Day prior to, and as a condition to, (i) the making of a
Material Acquisition or Disposition, (ii) the commencement of any Material Project, (iii) the
designation of any Subsidiary as a Restricted Subsidiary (other than an Immaterial Subsidiary) or
an Unrestricted Subsidiary (including at the time of formation or acquisition of such Subsidiary),
or (iv) to the extent exceeding (in the aggregate with any related transactions) $25,000,000, the
making of any Investment permitted under Section 7.02 (d), (i) or (j), or
the incurrence of any Indebtedness permitted under Section 7.03(f) or (o), a
certificate from a Responsible Officer of General Partner demonstrating compliance or pro forma
compliance, as the case may be, with the provisions of Section 7.14 and/or Section
7.15 and containing calculations in such detail as may be reasonably required by the
Administrative Agent;

     (k) at the time of the delivery of each Compliance Certificate under Section 6.02(a),
a report containing a description of all changes in the information included in Part (b) of
Schedule 5.13 as may be necessary for Part (b) of Schedule 5.13 to be accurate and
complete as of the date of such report; and

     (l) promptly, such additional information regarding the business, financial or corporate
affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as
the Administrative Agent or any Lender may from time to time reasonably request.

69

 

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(a) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on
the Borrower’s website on the Internet at the website address listed on Schedule 10.02; or
(ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided
that: (I) the Borrower shall deliver paper copies of such documents to the Administrative Agent or
any Lender that requests the Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and (II) the Borrower
shall notify the Administrative Agent (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. The Administrative Agent shall have no obligation
to request the delivery or to maintain copies of the documents referred to above, and in any event
shall have no responsibility to monitor compliance by the Borrower with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent, the Syndication Agent
and/or the Arrangers will make available to the Lenders and the L/C Issuer materials and/or
information provided by or on behalf of the Borrower hereunder (collectively, “the Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with respect to the Borrower or
its securities) (each, a “Public Lender”). The Borrower hereby agrees that so long as the
Borrower is the issuer of any outstanding debt or equity securities that are registered or issued
pursuant to a private offering or is actively contemplating issuing any such securities (w) all the
Borrower Materials that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear
prominently on the first page thereof; (x) by marking the Borrower Materials “PUBLIC,” the Borrower
shall be deemed to have authorized the Administrative Agent, the Syndication Agent, the Arrangers,
the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material
non-public information (although it may be sensitive and proprietary) with respect to the Borrower
or its securities for purposes of United States Federal and state securities laws; (y) all the
Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor;” and (z) the Administrative Agent, the Syndication Agent and
the Arrangers shall be entitled to treat any the Borrower Materials that are not marked “PUBLIC” as
being suitable only for posting on a portion of the Platform not designated “Public Investor.”

     6.03 Notices. Promptly notify the Administrative Agent:

     (a) of the occurrence of any Default;

     (b) to the extent not otherwise disclosed pursuant to Section 6.02(c), of any matter
that has resulted or could reasonably be expected to result in a Material Adverse Effect,

70

 

including (i) breach or non-performance of, or any default under, a Contractual Obligation of the
Borrower or any Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension,
or any material development therein, between the Borrower or any Subsidiary and any Governmental
Authority; or (iii) the commencement of, or any material development in, any litigation or
proceeding by any Person not a Governmental Authority affecting the Borrower or any Subsidiary;

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary; and

     (e) of the occurrence of any Disposition of property or assets, any sale of Equity Interests,
any incurrence or issuance of any Indebtedness or receipt of any Extraordinary Receipt, in each
case with respect to which the Borrower is required to make a mandatory prepayment pursuant to
Section 2.05.

     Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of General Partner setting forth details of the occurrence referred to therein
and stating what action the Borrower has taken and proposes to take with respect thereto. Each
notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions
of this Agreement and any other Loan Document that have been breached, if any.

     6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable, all its
obligations and liabilities (including all tax liabilities, assessments and governmental charges or
levies upon it or its properties or assets and all lawful claims which, if unpaid, would by law
become a Lien upon its property) except in each case, to the extent the failure to pay or discharge
the same could not reasonably be expected to have a Material Adverse Effect.

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its
legal existence and good standing under the Laws of the jurisdiction of its organization except in
a transaction permitted by Section 7.05 or 7.06; (b) take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of which could reasonably
be expected to have a Material Adverse Effect.

     6.06 Maintenance of Properties. Except where the failure to do so could not reasonably be expected
to have a Material Adverse Effect, (a) maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear
excepted; (b) make all necessary repairs thereto and renewals and replacements thereof; and (c) use
the standard of care typical in the industry in the operation and maintenance of its facilities.

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance companies
not Affiliates of any Loan Party, insurance with respect to its properties and

71

 

business against
loss or damage of the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts as are customarily carried under similar circumstances
by such other Persons and providing (a) for payment of losses to the Collateral Agent as its
interests may appear, (b) that such policies may not be canceled or reduced or affected in any
material manner for any reason without 30 days prior notice to the Collateral Agent (or 10 days
prior notice in the case of a failure to pay premiums), and (c) to provide for any other matters
specified in any applicable Security Document or which the Administrative Agent may reasonably
require. Each Loan Party will maintain any additional insurance coverage as described in the
respective Security Documents. The Borrower shall maintain, or cause to be maintained, with an
insurer reasonably acceptable to the Administrative Agent, flood insurance sufficient for Lenders
to comply with Regulation H of the Board of Governors of the Federal Reserve System. Each Loan
Party shall at all times maintain insurance against business interruption and its liability for
injury to persons or property in accordance with Schedule 6.07, which insurance shall be by
financially sound and reputable insurers.

     6.08 Compliance with Laws. Comply in all material respects with the requirements of all Laws and
all orders, writs, injunctions and decrees applicable to it or to its business or property, except
in such instances in which (a) such requirement of Law or order, writ, injunction or decree is
being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure
to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records. Maintain proper books of record and account, in which entries in
conformity with GAAP consistently applied shall be made of all financial transactions and matters
involving the assets and business of the Borrower and such Subsidiary, as the case may be.

     6.10 Inspection Rights. Permit representatives and independent contractors of the Administrative
Agent and each Lender to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent public accountants,
and at such reasonable times during normal business hours and as often as may be reasonably
desired, upon reasonable advance notice to the Borrower; provided, however, that,
excluding any such visits and inspections during the continuation of an Event of Default, only the
Administrative Agent on behalf of the Lenders may exercise rights of the Administrative Agent and
the Lenders under this Section 6.10 and the Administrative Agent shall not exercise such rights
more often than one (1)
time during any calendar year absent the existence of an Event of Default and only one (1) such
time shall be at the Borrower’s expense; provided, further that when an Event of
Default exists the Administrative Agent or any Lender (or any of their respective representatives
or independent contractors) may do any of the foregoing at the expense of the Borrower at any time
during normal business hours and without advance notice.

     6.11 Use of Proceeds. On the Closing Date, use the proceeds of this Agreement to (i) fund a
portion of the Acquisition and related expenses, (ii) repay Intercompany Indebtedness, and (iii)
pay fees and expenses incurred pursuant to this Agreement and the Initial Public Offering.
Thereafter, the proceeds of this Agreement shall be used for working capital including

72

 

the issuance
of Letters of Credit, capital expenditures, and for general corporate purposes not in contravention
of any Law or of any Loan Document.

     6.12 Additional Subsidiaries, Guarantors and Pledgors. Notify the Administrative Agent and
the Collateral Agent not later than three (3) Business days after any Person becomes a Subsidiary,
which notice shall provide the information included in Schedule 5.13 as may be necessary
for Schedule 5.13 to be accurate and complete as of the date of such notice and shall
specify whether such Person is a Domestic Restricted Subsidiary (and if it is or is to be treated
as an Immaterial Subsidiary information demonstrating to the reasonable satisfaction of the
Administrative Agent that such treatment is permitted), a Partially Owned Operating Company, a
Foreign Subsidiary or an Unrestricted Subsidiary (and shall include compliance with the
requirements of Section 6.18 for designation as an Unrestricted Subsidiary) and (a) in the
case of any Person that becomes a Domestic Restricted Subsidiary (other than an Immaterial
Subsidiary) of the Borrower, and promptly thereafter (and in any event within 30 days (or such
longer period as the Administrative Agent may agree in its discretion)), cause such Person, to (i)
become a Guarantor by executing and delivering to the Administrative Agent a counterpart of the
Guaranty or such other document as the Administrative Agent shall deem appropriate for such
purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in clauses
(v) and (vi) of Section 4.01(a) and, if requested by the Administrative Agent, favorable
opinions of counsel to such Person (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to in clause (i)), all in form,
content and scope reasonably satisfactory to the Administrative Agent and (b) at the time that any
Person becomes a Restricted Subsidiary of the Borrower or a Partially Owned Operating Company, and
promptly thereafter (and in any event within 30 days (or such longer period as the Administrative
Agent may agree in its discretion)), (w) cause all of the Equity Interests, or Eligible Equity
Interests in the case of a First-Tier Foreign Subsidiary, of such Person owned by a Loan Party to
be pledged to the Collateral Agent to secure the Obligations, the Cash Management Obligations and
the Secured Swap Obligations by executing and delivering the Pledge and Security Agreement or a
joinder thereto, (x) pursuant to the Pledge and Security Agreement, deliver or cause to be
delivered to the Collateral Agent all certificates, stock powers and other documents required by
the Pledge and Security Agreement with respect to all such Equity Interests or Eligible Equity
Interests, as applicable, in any such Person, (y) take or cause to be taken such other actions, all
as may be necessary to provide the Collateral Agent with a first priority perfected pledge on and
security interest in such Equity Interests or Eligible
Equity Interests, as applicable, in such Subsidiary, and (z) deliver to the Collateral Agent
documents of the types referred to in clauses (v) and (vi) of Section
4.01(a) and, if requested by the Collateral Agent, favorable opinions of counsel to such Person
(which shall cover, among other things, the legality, validity, binding effect and enforceability
of the documentation referred to in clause (w)), all in form, content and scope reasonably
satisfactory to the Administrative Agent.

     6.13 Agreement to Deliver Security Documents. Deliver and to cause each Guarantor and any other
Person required by the Administrative Agent or the Collateral Agent to deliver, to further secure
the Obligations, the Secured Swap Obligations, and the Cash Management Obligations, whenever
requested by the Administrative Agent or Collateral Agent in their sole and absolute discretion,
deeds of trust, mortgages, chattel mortgages, security agreements, flood hazard certification,
evidence of title, financing statements and other Security Documents in form and substance
satisfactory to the Administrative Agent and Collateral Agent

73

 

for the purpose of granting,
confirming, and perfecting first and prior liens or security interests, subject only to Liens
permitted under the Loan Documents, on any real or personal property now owned or hereafter
acquired by such Persons, excluding real property that, taken together with all property reasonably
related thereto or used in connection therewith that does not then constitute Collateral, has a
fair market value of less than $10,000,000. Notwithstanding the foregoing, (a) Equity Interests of
a Person that is not a Subsidiary or a Partially Owned Operating Company shall not be required to
be Collateral to the extent prohibited by a provision that is permitted by clause (II) of the
proviso in Section 7.10 and (b) Equity Interests of an Unrestricted Subsidiary shall not be
required to be Collateral.

     6.14 Perfection and Protection of Security Interests and Liens. Deliver and to cause each
Guarantor and any other Person required by the Administrative Agent or Collateral Agent to deliver
Security Documents pursuant to Section 6.13, to deliver from time to time to the
Collateral Agent any financing statements, continuation statements, extension agreements and other
documents, properly completed and executed (and acknowledged when required) by such Persons in form
and substance reasonably satisfactory to the Collateral Agent, which the Collateral Agent requests
for the purpose of perfecting, confirming, or protecting any Liens or other rights in any property
securing any Obligations, Secured Swap Obligations and Cash Management Obligations. The Borrower
further agrees to promptly, upon request by the Administrative Agent or Collateral Agent, or any
Lender through the Administrative Agent, correct any material defect or error that may be
discovered in any Security Document or in the execution, acknowledgment, filing or recordation
thereof.

     6.15 Performance on the Borrower’s Behalf. If any Loan Party fails to pay any taxes, insurance
premiums, expenses, attorneys’ fees or other amounts it is required to pay under any Loan Document,
the Administrative Agent may pay the same after notice of such payment by the Administrative Agent
is given to the Borrower. The Borrower shall promptly reimburse the Administrative Agent for any
such payments and each amount paid by the Administrative Agent shall constitute an Obligation owed
hereunder which is due and payable on the date such amount is paid by the Administrative Agent.

     6.16 Environmental Matters; Environmental Reviews. Except, in each case, to the extent that the failure to do so could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, (a) comply in all
material respects with all Environmental Laws now or hereafter applicable to such Loan Party as
well as all contractual obligations and agreements with respect to environmental remediation or
other environmental matters, (b) obtain, at or prior to the time required by applicable
Environmental Laws, all environmental, health and safety permits, licenses and other authorizations
necessary for its operations and will maintain such authorizations in full force and effect, (c)
conduct any investigation, study, sampling and testing, and undertake any cleanup, removal,
remedial or other action necessary to remove and clean up all Hazardous Materials from any of its
properties, in accordance with the requirements of all Environmental Laws, and (d) promptly pay and
discharge when due all Environmental Liabilities and debts, claims, liabilities and obligations
with respect to any clean-up or remediation measures necessary to comply with Environmental Laws
unless, in each case, the same are being contested in good faith by appropriate proceedings
diligently conducted and adequate reserves in accordance with GAAP are being maintained by the
applicable Loan Party.

74

 

     6.17 Compliance with Agreements. Observe, perform or comply with any agreement with any Person or
any term or condition of any instrument, if such agreement or instrument is materially significant
to such Loan Party or to Loan Parties on a Consolidated basis or materially significant to any
Guarantor, unless any such failure to so observe, perform or comply is remedied within the
applicable period of grace (if any) provided in such agreement or instrument or unless such failure
to so observe, perform or comply would not reasonably be expected to have a Material Adverse
Effect.

     6.18 Designation and Conversion of Restricted and Unrestricted Subsidiaries.

     (a) Unless designated after the Closing Date in writing to the Administrative Agent pursuant
to this Section, any Person that becomes a Subsidiary of the Borrower or any of its Restricted
Subsidiaries shall be classified as a Restricted Subsidiary.

     (b) The Borrower may designate any Subsidiary (including a newly formed or newly acquired
Subsidiary) as an Unrestricted Subsidiary if (i) the representations and warranties of the Loan
Parties contained in each of the Loan Documents are true and correct on and as of such date as if
made on and as of the date of such designation (or, if stated to have been made expressly as of an
earlier date, were true and correct as of such date), (ii) after giving effect to such
designation, no Default or Event of Default would exist, (iii) immediately after giving effect to
such designation, the Borrower and its Restricted Subsidiaries shall be in pro forma compliance
with all of the covenants set forth in Sections 7.14 and 7.15, such compliance to
be determined on the basis of the financial information most recently delivered to the
Administrative Agent and the Lenders pursuant to Section 6.01(a) or (b) as though
such Investment had been consummated as of the first day of the fiscal period covered thereby,
(iv) no Subsidiary may be designated as an Unrestricted Subsidiary if it will be treated as a
“restricted subsidiary” for purposes of any indenture or agreement governing Unsecured Note
Indebtedness and (v) in the case of a Subsidiary which is already classified as a Restricted
Subsidiary (other than an Immaterial Subsidiary), the Borrower has obtained the prior written
consent of the Administrative Agent and the Required Lenders. Except as provided in this Section,
no Restricted Subsidiary may be redesignated as an Unrestricted Subsidiary.

     (c) The Borrower may designate any Unrestricted Subsidiary to be a Restricted Subsidiary if
after giving effect to such designation, (i) the representations and warranties of the Loan
Parties contained in each of the Loan Documents are true and correct in all material respects on
and as of such date as if made on and as of the date of such redesignation (or, if stated to have
been made expressly as of an earlier date, were true and correct as of such date), (ii) after
giving effect to such designation, no Default or Event of Default would exist and (iii)
immediately after giving effect to such designation, the Borrower and its Restricted Subsidiaries
shall be in pro forma compliance with all of the covenants set forth in Sections 7.14 and
7.15, such compliance to be determined on the basis of the financial information most
recently delivered to the Administrative Agent and the Lenders pursuant to Section 6.01(a)
or (b) as though such Investment had been consummated as of the first day of the fiscal
period covered thereby.

     (d) The Borrower will not, and will not permit any of the Restricted Subsidiaries to
Guarantee any Indebtedness or other obligations of any Unrestricted Subsidiary.

75

 

     (e) The Borrower will not permit any Unrestricted Subsidiary to hold any Equity Interests in,
or any Indebtedness of, the Borrower or any Restricted Subsidiary.

     6.19 Maintenance of Corporate Separateness. Satisfy customary corporate or limited liability
company formalities and other requirements necessary to preserve the separate existence of each
Unrestricted Subsidiary from the Borrower and each Restricted Subsidiary.

ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall not, nor shall it permit any Restricted Subsidiary to, directly or indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that (i) the Lien does not extend to any additional property
other than after-acquired property that is affixed or incorporated into the property covered by
such Lien or financed by Indebtedness permitted under Section 7.03 and proceeds and
products thereof, (ii) the amount secured or benefited thereby is not increased except as
contemplated by Section 7.03(b), (iii) the direct or any contingent obligor with respect
thereto is not changed, and (iv) any renewal or extension of the obligations secured or benefited
thereby is permitted by Section 7.03(b);

     (c) Liens for taxes not yet due or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period of more than 60 days
or if more than sixty (60) days overdue, are unfiled and no other action has been take to enforce
such Lien or which are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books of the applicable
Person in accordance with GAAP;

     (e) (i) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation, other than any Lien
imposed by ERISA and (ii) pledges and deposits in the ordinary course of business securing
liability for reimbursement or indemnification obligations of (including obligations in respect of
letters of credit or bank guarantees for the benefit of) insurance carriers providing property,
casualty or liability insurance to the Borrower or any of its

76

 

Restricted Subsidiaries and (iii)
Liens on proceeds of insurance policies securing Indebtedness permitted under Section
7.03(m)(i);

     (f) deposits to secure the performance of bids, trade contracts and leases (other than
Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature incurred in the ordinary
course of business;

     (g) easements, rights-of-way, servitudes, permits, reservations, exceptions, covenants and
other restrictions as to the use of real property, and other similar encumbrances incurred in the
ordinary course of business which, with respect to all of the foregoing, do not secure the payment
of Indebtedness of a Loan Party (other than pursuant to the Loan Documents) and which do not in
any case materially detract from the value of the property subject thereto or materially interfere
with the ordinary conduct of the business of the applicable Person;

     (h) Liens securing judgments for the payment of money not constituting an Event of Default
under Section 8.01(h) or securing appeal or other surety bonds related to such judgments;

     (i) Liens securing Capital Leases and purchase money Indebtedness permitted under Section
7.03(e); provided that (i) such Liens securing purchase money Indebtedness do not at any time
encumber any property other than the property financed by such Indebtedness and the proceeds and
products thereof and (ii) the Indebtedness secured thereby does not exceed as of the date such
Indebtedness is incurred the cost or fair market value, whichever is lower, of the property being
acquired on the date of acquisition;

     (j) Subject to the consent of Administrative Agent, Liens existing upon property acquired in
an acquisition or of any Person that becomes a Restricted Subsidiary, existing at
the time of such acquisition and not incurred in contemplation thereof, and not upon any
other property, securing only Indebtedness permitted by Section 7.03(i);

     (k) Liens reserved in leases of business premises entered into in the ordinary course of
business for rent and for compliance with the terms of the lease limited to equipment and fixtures
on the leased premises;

     (l) Liens (i) of a collection bank arising under Section 4.210 of the UCC on items in the
course of collection, (ii) attaching to commodity trading accounts or other commodities brokerage
accounts incurred in the ordinary course of business (iii) in favor of a banking institution
arising as a matter of law encumbering deposits (including the right of set-off) and which are
within the general parameters customary in the banking industry; or (iv) in connection with Cash
Management Obligations and other obligations in respect of netting services, overdraft protections
and similar arrangements, in each case in connection with deposit accounts in the ordinary course
of business and that are limited to Liens customary in such arrangements;

     (m) Liens (i) on cash advances in favor of the seller of any property to be acquired in an
Investment permitted pursuant to Sections 7.02(i) and (j),to be applied against
the

77

 

purchase price for such Investment, and (ii) consisting of an agreement to Dispose of any
property in a Disposition permitted under Section 7.05, in each case, solely to the extent
such Investment or Disposition, as the case may be, would have been permitted on the date of the
creation of such Lien;

     (n) Liens encumbering reasonable customary initial deposits and margin deposits and similar
Liens (in each case limited to the cash, commodity contracts or other Investments in such account)
attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business and not for speculative purposes;

     (o) Liens that constitute Guarantees of Indebtedness to the extent such Guarantees are
permitted by Section 7.03;

     (p) Liens on Property not constituting Collateral for the Obligations, the Cash Management
Obligations or the Secured Swap Obligations and not otherwise permitted by the foregoing clauses
of this Section 7.01; provided that the aggregate principal or face amount of all
Indebtedness secured by Liens under this Section 7.01(o) shall not exceed $50,000,000 at
any time.

provided, nothing in this Section 7.01 shall in and of itself constitute or be
deemed to constitute an agreement or acknowledgment by the Administrative Agent or any Lender that
any Indebtedness subject to or secured by any Lien, right or other interest permitted under
subsections (a) through (o) above ranks in priority to any Obligation.

     7.02 Investments. Make any Investments, except:

     (a) Investments held by the Borrower or such Subsidiary in the form of cash equivalents;

     (b) Investments of the Borrower in any Restricted Subsidiary and Investments of any
Restricted Subsidiary in the Borrower or in another Restricted Subsidiary;

     (c) Investments representing non-cash consideration of Dispositions permitted under
Section 7.05;

     (d) The acquisition of or other Investments (other than Investments consisting of Guarantees)
in any Unrestricted Subsidiary so long as (i) immediately before and immediately after giving pro
forma effect to any such acquisition or Investment, no Default shall have occurred and be
continuing and (ii) immediately after giving effect to such acquisition or Investment, the
Borrower and its Restricted Subsidiaries shall be in pro forma compliance with all of the
covenants set forth in Sections 7.14 and 7.15, such compliance to be determined on
the basis of the financial information most recently delivered to the Administrative Agent and the
Lenders pursuant to Section 6.01(a) or (b) as though such Investment had been
consummated as of the first day of the fiscal period covered thereby;

     (e) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from

78

 

financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss;

     (f) Guarantees permitted by Section 7.03;

     (g) Investments in Swap Contracts permitted by Section 7.03(d);

     (h) Loans or advances to any officer, director or employee of any Loan Party for travel and
related expenses consistent with the policies and procedures of such Loan Party and not to exceed
$2,500,000 at any one time outstanding;

     (i) the purchase or other acquisition of property and assets or businesses of any Person or
of assets constituting a business unit, a line of business or division of such Person, or Equity
Interests in a Person that, upon the consummation thereof, will be a wholly owned Restricted
Subsidiary of the Borrower (including as a result of a merger or consolidation); provided that,
with respect to each purchase or other acquisition made pursuant to this Section 7.02(i)
(each, a “Permitted Acquisition”):

     (A) to the extent required by Section 6.12, each applicable Loan Party
and any such newly created or acquired Restricted Subsidiary (and, to the extent
required by this Agreement, the Restricted Subsidiaries of such created or acquired
Restricted Subsidiary) shall be a Guarantor and shall have complied with the
requirements of Sections 6.12 and 6.13, within the times specified
therein;

     (B) the acquired property, assets, business or Person is in the Present Line of
Business; and

     (C) (1) immediately before and immediately after giving pro forma effect to any
such purchase or other acquisition, no Default shall have occurred and be continuing
and (2) immediately after giving effect to such purchase or other acquisition, the
Borrower and its Restricted Subsidiaries shall be in pro forma compliance with all
of the covenants set forth in Sections 7.14 and 7.15, such
compliance to be determined on the basis of the financial information most recently
delivered to the Administrative Agent and the Lenders pursuant to Section
6.01(a) or (b) as though such purchase or other acquisition had been
consummated as of the first day of the fiscal period covered thereby; and

     (j) Investments (other than Investments consisting of Guarantees) in Persons (other than a
Person that is or becomes a Subsidiary of the Borrower) in the Present Line of Business to the
extent not otherwise permitted by the foregoing clauses of this Section, so long as, immediately
after giving effect to any such Investment, no Default has occurred and is continuing and the
Borrower and its Restricted Subsidiaries shall be in pro forma compliance with all of the
covenants set forth in Sections 7.14 and 7.15, such compliance to be determined on
the basis of the financial information most recently delivered to the Administrative Agent and the
Lenders pursuant to Section 6.01(a) or (b) as though such Investment had been
consummated as of the first day of the fiscal period covered thereby.

     7.03 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

79

 

     (a) Indebtedness under the Loan Documents;

     (b) [intentionally omitted];

     (c) Guarantees of the Borrower or any Guarantor in respect of Indebtedness otherwise
permitted hereunder of the Borrower or any Restricted Subsidiary;

     (d) obligations (contingent or otherwise) of the Borrower or any Restricted Subsidiary
existing or arising under any Swap Contract with a Hedging Party designed to hedge against
interest rates, foreign exchange rates or commodities pricing risks incurred in the ordinary
course of business and not for speculative purposes;

     (e) Indebtedness in respect of Capital Lease Obligations, Synthetic Lease Obligations and
purchase money obligations for fixed or capital assets within the requirements set forth in
Section 7.01(i); provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed an amount equal to five percent (5%) of
Consolidated Net Tangible Assets;

     (f) unsecured Indebtedness in respect of a private placement or a public sale of unsecured
senior or subordinated notes by the Borrower and unsecured guarantees of such notes by one or more
of the Guarantors, provided, that (i) no principal of such Indebtedness is scheduled to
mature earlier than the Maturity Date and (ii) after giving effect to such Indebtedness and the
application of any of the proceeds thereof on the issuance date no Default
or Event of Default shall exist and, on a pro forma basis, the Borrower shall comply with the
covenants contained in Sections 7.14 and 7.15;

     (g) Indebtedness of any Restricted Subsidiary owing to the Borrower or another Restricted
Subsidiary subordinated to the Obligations, the Cash Management Obligations and the Secured Swap
Obligations on terms satisfactory to the Administrative Agent;

     (h) Indebtedness owed to Targa or any of its Subsidiaries that is subordinated to the
Obligations, the Cash Management Obligations and the Secured Swap Obligations on terms reasonably
satisfactory to the Administrative Agent;

     (i) Subject to the consent of Administrative Agent, Indebtedness acquired in an acquisition,
existing at the time of such acquisition and not incurred in contemplation thereof;
provided that such Indebtedness shall not be secured except to the extent such
Indebtedness is secured by Liens permitted by Section 7.01(j); provided further,
that no Person, other than the obligor or obligors thereon at the time of such acquisition shall
become liable for such Indebtedness;

     (j) Cash Management Obligations and other Indebtedness in respect of netting services,
overdraft protections and similar arrangements, in each case in connection with deposit accounts
in the ordinary course of business and discharged within two Business Days of its incurrence;

     (k) Indebtedness representing deferred compensation to employees of the Borrower and its
Restricted Subsidiaries incurred in the ordinary course of business;

80

 

     (l) Customary indemnification obligations or customary obligations in respect of purchase
price or other similar adjustments, in each case incurred by the Borrower or any Restricted
Subsidiary in connection with the Disposition of any assets permitted hereby, or any Investment
permitted hereby or any Permitted Acquisition, but excluding Guarantees of Indebtedness; provided
that (i) such obligations are not required to be reflected on the balance sheet of the Borrower or
any Restricted Subsidiary (contingent obligations referred to in a footnote to financial
statements and not otherwise reflected on the balance sheet will not be deemed to be reflected on
such balance sheet for purposes of this clause (l)(i)) and (ii) the maximum liability in
respect of all such obligations incurred in connection with any Disposition shall at no time
exceed the gross proceeds, including noncash proceeds (the fair market value of such noncash
proceeds being measured at the time received and without giving effect to any subsequent changes
in value), actually received by the Borrower and its Restricted Subsidiaries in connection with
such Disposition;

     (m) Indebtedness consisting of (i) the financing of insurance premiums or (ii) customary
take-or-pay obligations contained in supply agreements, in each case, in the ordinary course of
business;

     (n) Obligations in respect of performance, bid, appeal and surety bonds and similar
obligations provided by the Borrower or any of its Restricted Subsidiaries, in each case in the
ordinary course of business;

     (o) Indebtedness for borrowed money of the Borrower and Guaranties thereof by one or more of
the Guarantors; provided that (i) such Indebtedness and guaranties are unsecured and are
subordinated to the Obligations, the Cash Management Obligations and the Secured Swap Obligations
on terms reasonably satisfactory to the Administrative Agent, (ii) no principal of such
Indebtedness is scheduled to mature earlier than the Maturity Date, (iii) after giving effect to
such Indebtedness and the application of any of the proceeds thereof on the issuance date no
Default or Event of Default shall exist and, on a pro forma basis, the Borrower shall comply with
the covenants contained in Sections 7.14 and 7.15, and such principal amount of
such subordinated Indebtedness cannot be prepaid except in accordance with Section 7.04.

     (p) Indebtedness not otherwise permitted by the foregoing clauses of this Section
7.03; provided that the aggregate principal or face amount of all Indebtedness shall not
exceed 10% of Consolidated Net Tangible Assets.

     7.04 Subordinated Indebtedness(a) . Pay the principal of any Indebtedness that is
subordinated to the Obligations, other than with the proceeds of unsecured Indebtedness permitted
under Section 7.03 that is subordinated on terms at least as favorable to the
Administrative Agent and the Lenders as the Indebtedness being so repaid.

     7.05 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another Person, or
Dispose of (whether in one transaction or in a series of transactions) all or substantially all of
its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so
long as no Default exists or would result therefrom:

81

 

     (a) any Restricted Subsidiary may merge with (i) the Borrower, provided that the
Borrower shall be the continuing or surviving Person, or (ii) any one or more other Restricted
Subsidiaries, provided that when any Wholly Owned Subsidiary is merging with another
Restricted Subsidiary, the Wholly Owned Subsidiary shall be the continuing or surviving Person;
and

     (b) any Restricted Subsidiary may liquidate or dissolve or change its legal form if the
Borrower determines in good faith that such action is in the best interests of the Borrower and
its Restricted Subsidiaries and is not materially disadvantageous to the Lenders;

     (c) any Restricted Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or to another Restricted Subsidiary;
provided that if the transferor in such a transaction is a Wholly Owned Subsidiary, then
the transferee must either be the Borrower or a Wholly Owned Subsidiary; provided,
further that if the transferor in any such a transaction is a Guarantor, then the
transferee must either be the Borrower or Guarantor.

     (d) so long as no Default exists or would result therefrom, any Restricted Subsidiary may
merge with any other Person in order to effect an Investment permitted
pursuant to Section 7.02; provided that the continuing or surviving Person shall be a
Subsidiary, which together with each of its Subsidiaries, shall have complied with the
requirements of Section 6.12.

     (e) so long as no Default has occurred and is continuing or would result therefrom, each of
the Borrower and any of its Restricted Subsidiaries may merge into or consolidate with any other
Person or permit any other Person to merge into or consolidate with it; provided, however,
that in each case, immediately after giving effect thereto (i) in the case of any such merger to
which the Borrower is a party, the Borrower is the surviving entity and (ii) in the case of any
such merger to which any Loan Party (other than the Borrower) is a party, such Loan Party is the
surviving entity.

     (f) so long as no Default exists or would result therefrom, a merger, dissolution,
liquidation, consolidation or Disposition, the purpose and effect of which is to consummate a
Disposition permitted pursuant to Section 7.06.

     7.06 Dispositions. Make any Disposition or enter into any agreement to make any Disposition,
except:

     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired,
and Dispositions in the ordinary course of business of property no longer used or useful in the
conduct of the business of the Borrower and its Restricted Subsidiaries;

     (b) Dispositions of inventory or cash equivalents or immaterial assets in the ordinary course
of business;

     (c) Dispositions of fixtures or equipment to the extent that (i) such property is exchanged
for credit against the purchase price of similar replacement fixtures or equipment or

82

 

(ii) the
proceeds of such Disposition are promptly applied to the purchase price of such replacement
fixtures or equipment;

     (d) Restricted Payments permitted by Section 7.07 and Liens permitted by Section
7.01;

     (e) Dispositions of property acquired by the Borrower or any Subsidiary after the Closing
Date pursuant to sale-leaseback transactions; provided that the applicable sale-leaseback
transaction (i) occurs within ninety (90) days after the acquisition or construction (as
applicable) of such property and (ii) is made for cash consideration not less than the cost of
acquisition or construction of such property;

     (f) Dispositions of accounts receivables in connection with the collection or compromise
thereof in the ordinary course of business;

     (g) Leases, subleases, licenses or sublicenses (including the provision of software under an
open source license), easements, rights of way or similar rights or encumbrances in each case in
the ordinary course of business and which do not materially interfere with the business of the
Borrower and its Restricted Subsidiaries;

     (h) transfers of property that has suffered a casualty (constituting a total loss or
constructive total loss of such property) upon receipt of the Extraordinary Receipts of such
casualty;

     (i) Dispositions of Investments in joint ventures to the extent required by, or made pursuant
to customary buy/sell arrangements between, the joint venture parties set forth in joint venture
arrangements and similar binding arrangements;

     (j) Dispositions of property, subject to the Security Documents, by the Borrower or any
Subsidiary to the Borrower or to a Wholly Owned Subsidiary of the Borrower; provided that
if the transferor of such property is the Borrower or a Guarantor, the transferee thereof must
either be the Borrower or a Guarantor;

     (k) Dispositions permitted under Section 7.05;

     (l) Dispositions by the Borrower and its Restricted Subsidiaries not otherwise permitted
under clauses (a) through (k) or (m) of this Section 7.06; provided that (i) at
the time of such Disposition, no Default shall exist or would result from such Disposition, (ii)
the aggregate book value of all property Disposed of in reliance on this clause (l) since the
Closing Date shall not exceed ten percent (10%) of Consolidated Net Tangible Assets on the first
day of the fiscal year most recently ended at the time of such determination and (iii) no
Disposition of less than all of the Equity Interests of any Subsidiary shall be permitted under
this clause (l); and

     (m) Dispositions by the Borrower and its Restricted Subsidiaries not otherwise permitted
under clauses (a) through (l) of this Section 7.06; provided that (i) at the time
of such Disposition, no Default shall exist or would result from such Disposition, (ii) the
Disposition is for 75% cash or cash equivalents, (iii) the Borrower shall make the prepayment or
reinvestment

83

 

of proceeds of such Disposition as required by Section 2.05(d), and (iv) no
Disposition of less than all of the Equity Interests of any Subsidiary shall be permitted under
this clause (m).

     provided, however, that any Disposition pursuant to clauses (a),
(b), (c), (e), (f), (i), (j), (k),
(l) or (m) shall be for fair market value.

No Loan Party will discount, sell, pledge or assign any notes payable to it, accounts receivable or
future income except for Dispositions permitted by clause (f). So long as no Event of
Default then exists, the Administrative Agent will, at the Borrower’s request and expense, execute
a release, satisfactory to the Borrower and the Administrative Agent, of any Collateral so sold,
transferred, leased, exchanged, alienated or disposed of pursuant to this Section.

     7.07 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, except that, so long as no Default shall
have occurred and be continuing at the time of any action described below or would result
therefrom:

     (a) each Subsidiary may make Restricted Payments to the Borrower, the Guarantors and any
other Person that owns an Equity Interest in such Subsidiary, ratably according to their
respective holdings of the type of Equity Interest in respect of which such Restricted
Payment is being made;

     (b) the Borrower and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or other common Equity Interests of such Person;

     (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it with the proceeds received from the substantially concurrent issue of new
            shares of its common stock or other common Equity Interests;

     (d) the Borrower may make cash distributions in an amount not to exceed “Available Cash” (as
such term is defined in the Borrower’s Partnership Agreement) to the holders of its Equity
Interest.

     7.08 Change in Nature of Business. Engage in any material line of business other than the Present
Line of Business.

     7.09 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of
the Borrower, whether or not in the ordinary course of business, other than on fair and reasonable
terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the
Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate, provided that the foregoing restriction shall not apply to transactions
(a) between or among the Borrower and any of its Wholly Owned Subsidiaries or between and among any
Wholly Owned Subsidiaries, (b) the transaction contemplated hereby and the payment of fees and
expenses related thereto, (c) Restricted Payments permitted under Section 7.07, and (d)
transactions pursuant to agreements, instruments or arrangements in existence on the Closing Date
and set forth on Schedule 7.09 or any

84

 

amendment thereto to the extent such an amendment is not adverse to the Lenders in any material respect.

     7.10 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement or
any other Loan Document) that (a) limits the ability (i) of any Subsidiary to (A) make Restricted
Payments to the Borrower or any Guarantor, (B) redeem Equity Interests held in it by the Borrower
or any Guarantor, (C) otherwise transfer property to the Borrower or any Guarantor, (D) to repay
loans and other indebtedness owing by it to the Borrower or any Guarantor, (ii) of any Restricted
Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any Restricted
Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person,
provided, however, that the foregoing clauses shall not prohibit (I) any negative
pledge incurred or provided in favor of any holder of Indebtedness permitted under Section
7.03 solely to the extent any such negative pledge relates to the property financed by or the
subject of such Indebtedness, (II) provisions in Organizational Documents and other similar
agreements applicable to joint ventures or to other Persons that are not Restricted Subsidiaries or
Partially Owned Operating Companies (to the extent Investment in such joint venture or other Person
is permitted under Section 7.02) that limit
Liens on or transfers of the Equity Interests in such joint venture or other Person entered into in
the ordinary course of business, (III) are customary restrictions in leases, subleases, licenses,
or asset sale agreements otherwise permitted hereby (or in easements, rights of way or similar
rights or encumbrances, in each case granted to the Borrower or a Restricted Subsidiary by a third
party in respect of real property owned by such third party) so long as such restrictions relate
only to the assets (or the Borrower’s or such Restricted Subsidiary’s rights under such easement,
right of way or similar right or encumbrance, as applicable) subject thereto or (b) requires the
grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person.

     7.11 Prohibited Contracts.

     (a) Enter into any “take-or-pay” contract or other contract or arrangement for the purchase
of goods or services which obligates it to pay for such goods or service regardless of whether
they are delivered or furnished to it, other than contracts for pipeline capacity or for services
in either case reasonably anticipated to be utilized in the ordinary course of business or as
otherwise permitted by Section 7.03(m)(ii); or

     (b) Incur any obligation to contribute to any Multiemployer Plan.

     7.12 Limitation on Credit Extensions. Except for Investments permitted under Section 7.02,
extend credit, make advances or make loans other than normal and prudent extensions of credit to
customers buying goods and services in the ordinary course of business or to another Loan Party in
the ordinary course of business, which extensions shall not be for longer periods than those
extended by similar businesses operated in a normal and prudent manner.

     7.13 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or indirectly,
and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the
meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such purpose.

85

 

     7.14 Interest Coverage Ratio. On the Closing Date and at the end of each fiscal quarter, beginning
March 31, 2007, permit the ratio of (a) Consolidated Adjusted EBITDA to (b) Interest Expense for
the four consecutive fiscal quarter period then ended to be less than 2.25 to 1.0.

     7.15 Leverage Ratios.

     (a) If no Unsecured Note Indebtedness is outstanding on the applicable date of determination,
permit the Consolidated Leverage Ratio to be greater than: (i) 5.75 to 1.0 on the Closing Date nor
on the last day of the fiscal quarters ending March 31, 2007 and June 30, 2007; and (ii) 5.00 to
1.0 on the last day of any fiscal quarter ending on or after September 30, 2007.

     (b) If any Unsecured Note Indebtedness is incurred or outstanding on the applicable date of
determination, permit the Consolidated Leverage Ratio to be greater than: (i) during the period
prior to September 30, 2007, 6.25 to 1.0 on the date any Unsecured Note Indebtedness is incurred
nor on the last day of any fiscal quarter ending during such period; and (ii) during the period on
or after September 30, 2007, 5.50 to 1.0 on the date any Unsecured Note Indebtedness is incurred
nor on the last day of any fiscal quarter ending during such period.

     (c) If any Unsecured Note Indebtedness is incurred or outstanding on the applicable date of
determination, permit the Consolidated Senior Leverage Ratio to be greater than: (i) during the
period prior to September 30, 2007, 5.25 to 1.0 on the date any Unsecured Note Indebtedness is
incurred nor on the last day of any fiscal quarter ending during such period; nor (ii) during the
period on or after September 30, 2007, 4.50 to 1.0 on the date any Unsecured Note Indebtedness is
incurred nor on the last day of any fiscal quarter ending during such period.

     (d) During an Acquisition Period, the maximum permitted Consolidated Leverage Ratio and the
maximum permitted Consolidated Senior Leverage Ratio shall each be increased by 0.50 to 1.00 from
the otherwise applicable ratio set forth above (for example, the Consolidated Leverage Ratio
requirement that would otherwise be 5.50 to 1.00 will become 6.00 to 1.00). As used in this
Section 7.15(d), “Acquisition Period” means a period elected by the Borrower, such
election to be exercised by the Borrower by delivering notice thereof to the Administrative Agent,
beginning with the funding date of the purchase price for any Specified Acquisition and ending on
the earlier of (a) the first anniversary date of such funding date or (b) the Borrower’s election
(provided, that the Borrower is in compliance with all applicable provisions of this Section
7.15 after giving effect to such election), to terminate such Acquisition Period, such
election to be exercised by the Borrower delivering notice thereof to the Administrative Agent;
provided that once any Acquisition Period is in effect, the next succeeding Acquisition Period may
not commence until (i) the termination of such Acquisition Period in effect and (ii) after giving
effect to the termination of such Acquisition Period in effect the Borrower shall be in compliance
with all applicable provisions of this Section 7.15 and no Default shall have occurred and
be continuing.

     (e) Notwithstanding anything to the contrary, and for the avoidance of doubt, any failure by
the Borrower to be in compliance with any requirement of this Section 7.15 shall not

86

 

be
remedied by a change in the Consolidated Leverage Ratio upon the incurrence of any Unsecured Note
Indebtedness or the election of an Acquisition Period.

     7.16 Negative Pledge. Allow any Person, other than the Administrative Agent, L/C Issuer or any
Lender or any other Secured Party, to create or otherwise cause or suffer to exist or become
effective, or permit any
of the Subsidiaries to create or otherwise cause or suffer to exist or become effective, directly
or indirectly, any Lien (other than Liens permitted by Section 7.01) upon the assets of the
Borrower or any of its Subsidiaries without the prior express written consent of the Administrative
Agent.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii)
within five days after the same becomes due, any interest on any Loan or on any L/C Obligation, or
any fee due hereunder, or (iii) within five days after the same becomes due, any other amount
payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05,
6.11 or 6.12 or Article VII; provided, however that if the
Borrower fails to deliver any financial statements, certificates or other information required by
Section 6.01, 6.02, 6.03 or 6.12 and subsequently delivers such
financial statements, certificates or other information as required by such Sections, then such
Event of Default shall be deemed to have been cured and/or waived; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its
part to be performed or observed and such failure continues for 30 days after notice thereof by
the Administrative Agent; or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party
herein, in any other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading in any material respect when made or deemed made; or

     (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise)
in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness
under Swap Contracts) having an aggregate principal amount (including the undrawn face amount of
any outstanding Letter of Credit, surety bonds and other similar contingent obligations
outstanding under any agreement relating to such Indebtedness or Guarantee and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of more than the
Threshold Amount, or (B) fails to observe or perform any

87

 

other agreement or condition relating to
any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event occurs, the effect of which default or other
event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (or a trustee or agent
on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due or to be
repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity,
or such Guarantee to become payable or cash collateral in respect thereof to be demanded; provided
that this clause (e)(B) shall not apply to secured Indebtedness that becomes due as a result of
the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale
or transfer is permitted hereunder; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under
such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined
in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to
which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event,
the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof is greater
than the Threshold Amount; or

     (f) Insolvency Proceedings, Etc. The Borrower or any of its Restricted Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes
an assignment for the benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any material part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application or consent of
such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or any material part
of its property is instituted without the consent of such Person and continues undismissed or
unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) The Borrower or any of its Restricted
Subsidiaries becomes unable or admits in writing its inability or fails generally to pay its debts
as they become due, or (ii) any writ or warrant of attachment or execution or similar process is
issued or levied against all or any material part of the property of any such Person and is not
released, vacated or fully bonded within 60 days after its issue or levy; or

     (h) Judgments. There is entered against the Borrower or any of its Restricted
Subsidiaries (i) a final judgment or order for the payment of money in an aggregate amount
exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as
to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final
judgments that have, or could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, the same shall remain undischarged and either (A)
enforcement proceedings are commenced by any creditor upon such judgment or order which have not
been stayed by reason of a pending appeal or otherwise, or (B) there is a period of thirty (30)
consecutive days during which a stay of enforcement of such judgment, by reason of a pending
appeal or otherwise, is not in effect; or

88

 

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of any Loan Party
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC
in an aggregate amount in excess of the Threshold Amount, or (ii) any Loan Party or any ERISA
Affiliate fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

     (j) Invalidity of Loan Documents. Any material provision of any Loan Document, at
any time after its execution and delivery and for any reason other than as expressly permitted
hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force
and effect; or any Loan Party or any other Person contests in any manner the validity or
enforceability of any material provision of any Loan Document; or any Loan Party denies that it
has any or further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document; or

     (k) Change of Control. There occurs any Change of Control; or

     (l) Security Documents. Any Security Document shall for any reason (other than
pursuant to the terms hereof and thereof) cease to create a valid and perfected first priority
Lien in any asset having a value in excess of the Threshold Amount, except to the extent that any
such loss of perfection or priority results from the failure of the Administrative Agent or the
Collateral Agent to maintain possession of certificates actually delivered to it representing
securities pledged under the Security Documents or to file Uniform Commercial Code continuation
statements and except as to Collateral consisting of real property to the extent that such losses
are covered by a lender’s title insurance policy and such insurer has not denied coverage.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrower;

     (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

89

 

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions
shall automatically terminate, the unpaid principal amount of all outstanding Loans and all
interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the Administrative Agent or any
Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in Section 8.02 (or
after the Loans have automatically become immediately due and payable and the L/C Obligations have
automatically been required to be Cash Collateralized as set forth in the proviso to Section
8.02), any amounts received on account of the Obligations, the Cash Management Obligations and
the Secured Swap Obligations shall be applied by the Administrative Agent and the Collateral Agent
in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of external counsel to the
Administrative Agent and amounts payable under Article III) payable to the Administrative
Agent in its capacity as such and payable to the Collateral Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders
and the L/C Issuer (including fees, charges and disbursements of external counsel to the respective
Lenders and the L/C Issuer and amounts payable under Article III), ratably among them in
proportion to the respective amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, the Secured Swap Obligations and the Cash Management Obligations,
ratably among the Lenders, the Hedging Parties and the L/C Issuer in proportion to the respective
amounts described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit; and

     Last, the balance, if any, after all of the Obligations, the Cash Management
Obligations and the Secured Swap Obligations have been indefeasibly paid in full, to the Borrower
or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral
after all

90

 

Letters of Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, Cash Management Obligations and Secured Swap Obligations, if any,
in the order set forth above.

ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01 Appointment and Authority.

     (a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act
on its behalf as the Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. The provisions of this Article are
solely for the benefit of the Agents, the Lenders and the L/C Issuer, and neither the Borrower nor
any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

     (b) Each of the Lenders (in its capacities as a Lender, Swing Line Lender (if applicable),
L/C Issuer (if applicable) and a potential Hedging Party) hereby irrevocably appoints and
authorizes the Collateral Agent to act as the agent of (and to hold any security interest created
by the Security Documents for and on behalf of or on trust for) such Lender for purposes of
acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan
Parties to secure any of the Obligations, the Secured Swap Obligations or the Cash Management
Obligations together with such powers and discretion as are reasonably incidental thereto. In
this connection, the Collateral Agent (and any co-agents, sub-agents and attorneys-in-fact
appointed by the Administrative Agent or the Collateral Agent pursuant to Section 9.05 for
purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under
the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of
the Administrative Agent), shall be entitled to the benefits of all provisions of this Article
IX (including, Section 9.11, as though such co-agents, sub-agents and
attorneys-in-fact were the Collateral Agent) as if set forth in full herein with respect thereto.
Without limiting the generality of the foregoing, the Lenders hereby expressly authorize the
Collateral Agent to execute any and all documents (including releases) with respect to the
Collateral and the rights of the Secured Parties with respect thereto (including the Intercreditor
Agreement), as contemplated by and in accordance with the provisions of this Agreement and the
Security Documents and acknowledge and agree that any such action by any Agent shall bind the
Lenders.

     9.02 Rights as a Lender. Any Person serving an Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same as though it were
not such Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include such Person serving as an Agent hereunder in its
individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act
as the financial
advisor or in any other advisory capacity for and generally engage in any kind of business with any
Loan Party or any Subsidiary or other Affiliate

91

 

thereof as if such Person were not an Agent
hereunder and without any duty to account therefor to the Lenders.

     9.03 Exculpatory Provisions. No Agent shall have any duties or obligations except those expressly
set forth herein and in the other Loan Documents. Without limiting the generality of the
foregoing, Agents:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that such Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly provided for herein or in
the other Loan Documents), provided that no Agent shall be required to take any action
that, in its opinion or the opinion of its counsel, may expose such Agent to liability or that is
contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as
Agent or any of its Affiliates in any capacity.

     No Agent shall be liable for any action taken or not taken by it (i) with the consent or at
the request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as such Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Sections 10.01 and 8.02) or (ii) in the absence of its own gross
negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default unless
and until notice describing such Default is given to such Agent by the Borrower, a Lender or the
L/C Issuer.

     No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

     9.04 Reliance by Agent. Each Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it
to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Each
Agent also may rely upon any statement made to it orally or by telephone and believed by it to have
been made by the proper Person, and shall not

92

 

incur any liability for relying thereon. In
determining compliance with any condition hereunder to the making of a Loan, or the issuance of a
Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C
Issuer, such Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer
unless such Agent shall have received notice to the contrary from such Lender or the L/C Issuer
prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent may consult
with legal counsel (who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

     9.05 Delegation of Duties. Each of the Administrative Agent and the Collateral Agent may perform
any and all of its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by the Administrative Agent or the
Collateral Agent, respectively. Each of the Administrative Agent and the Collateral Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this Article shall apply
to any such sub-agent and to the Related Parties of the Administrative Agent and the Collateral
Agent and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities of the
Administrative Agent and the Collateral Agent.

     9.06 Resignation of Agent. The Administrative Agent or the Collateral Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent or Collateral Agent gives notice of its resignation, then
such retiring Administrative Agent or Collateral Agent may on behalf of the Lenders and the L/C
Issuer, appoint a successor Administrative Agent or Collateral Agent meeting the qualifications set
forth above; provided that if the Administrative Agent or Collateral Agent shall notify the
Borrower and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent or Collateral Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any Collateral held by the
Administrative Agent or Collateral Agent on behalf of the Lenders or the L/C Issuer under any of
the Loan Documents, the retiring Administrative Agent or Collateral Agent shall continue to hold
such Collateral until such time as a successor Administrative Agent or Collateral Agent is
appointed) and (2) all payments, communications and determinations provided to be made by, to or
through the Administrative Agent or Collateral Agent shall instead be made by or to each Lender and
the L/C Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent or Collateral Agent as provided for above in this Section. Upon the
acceptance of a successor’s appointment as Administrative Agent or Collateral Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring (or retired) Administrative Agent or Collateral Agent, and the retiring
Administrative Agent or Collateral Agent shall be discharged from all of its duties and obligations
hereunder or under the other

93

 

Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by the Borrower to a successor Administrative Agent or
Collateral Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the retiring Administrative Agent’s or Collateral
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article
and Section 10.04 shall continue in effect for the benefit of such retiring Administrative
Agent or Collateral Agent, its sub-agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while the retiring Administrative Agent or
Collateral Agent was acting as the Administrative Agent.

     Any resignation by Bank of America as the Administrative Agent pursuant to this Section shall
also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a
successor’s appointment as the Administrative Agent hereunder, (a) such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer
and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from
all of their respective duties and obligations hereunder or under the other Loan Documents, and (c)
the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

     9.07 Non-Reliance on Agent and Other Lenders. Each Lender and the L/C Issuer acknowledges that it
has, independently and without reliance upon any Agent, any Agent-Related Person or any other
Lender or any of their Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
and the L/C Issuer also acknowledges that it will, independently and without reliance upon any
Agent, any Agent-Related Person or any other Lender or any of their Related Parties and based on
such documents and information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the agents
listed on the cover page hereof shall have any powers, duties, liabilities or responsibilities
under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as
the Administrative Agent, a Lender or the L/C Issuer hereunder.

     9.09 Administrative Agent May File Proofs of Claim . In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the
principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent shall have made any
demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and
unpaid and to file such other documents as may be necessary or advisable in order

94

 

to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and
the Administrative Agent and their respective agents and external counsel and all other amounts
due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(i) and
(j), 2.09 and 10.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and external counsel, and any other amounts due
the Administrative Agent under Sections 2.09 and 10.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the
L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or
the L/C Issuer in any such proceeding.

     9.10 Collateral and Guaranty Matters. The Lenders, the L/C Issuer and the Hedging Parties
irrevocably authorize the Collateral Agent, at its option and in its discretion,

     (a) to release any Lien on any property granted to or held by the Collateral Agent under any
Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all
Obligations, the Cash Management Obligations and the Secured Swap Obligations (other than
contingent indemnification obligations) and the expiration or termination of all Letters of
Credit, (ii) that is sold or to be sold as part of or in connection with any sale permitted
hereunder or under any other Loan Document, (iii) subject to Section 10.01, if approved,
authorized or ratified in writing by the Required Lenders or, except to the extent that any such
loss of perfection or priority results from the failure of the Administrative Agent or the
Collateral Agent to maintain possession of certificates actually delivered to it representing
securities pledged under the Security Documents or to file Uniform Commercial Code
continuation statements and except as to Collateral consisting of real property to the extent that
such losses are covered by a lender’s title insurance policy and such insurer has not denied
coverage or (iv) if the property subject to such Lien is owned by a Guarantor, upon release of
such Guarantor from its obligations under its Guaranty pursuant to clause (c) below; and

     (b) to subordinate any Lien on any Property granted to or held by the Collateral Agent under
any Loan Document to the holder of any Lien on such property that is permitted by Section
7.01(i); and

     (c) to release any Guarantor from its obligations under the Guaranty if such Person ceases to
be a Restricted Subsidiary as a result of a transaction permitted hereunder.

95

 

     Upon request by the Collateral Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to
this Section 9.10. In each case as specified in this Section 9.10, the
Administrative Agent or the Collateral Agent will (and each Lender irrevocably authorizes such
Agent to), at the Borrower’s expense, execute and deliver to the applicable Loan Party such
documents as such Loan Party may reasonably request to evidence the release or subordination of
such item of Collateral from the assignment and security interest granted under the Security
Documents, or to evidence the release of such Guarantor from its obligations under the Guaranty, in
each case in accordance with the terms of the Loan Documents and this Section 9.10.

     9.11 Indemnification of Agents. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand each Agent and Agent-Related Person (to the
extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any
Loan Party to do so), pro rata, and hold harmless each Agent and Agent-Related Person from and
against any and all losses, claims, damages, liabilities and related expenses (including the fees,
charges and disbursements of any external counsel for any Agent) incurred by it; provided that no
Lender shall be liable for the payment to any Agent or Agent-Related Person of any portion of such
losses, claims, damages, liabilities and related expenses resulting from such Agent’s or
Agent-Related Person’s own gross negligence or willful misconduct, as determined by the final
judgment of a court of competent jurisdiction; provided that no action taken in accordance
with the directions of the Required Lenders (or such other number or percentage of the Lenders as
shall be required by the Loan Documents) shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section 9.11. In the case of any investigation, litigation
or proceeding giving rise to any loss, claim, damage, liability and related expense this
Section 9.11 applies whether any such investigation, litigation or proceeding is brought by
any Lender or any other Person. Without limitation of the foregoing, each Lender shall reimburse
the Administrative Agent or Collateral Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including attorney costs) incurred by such 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, this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that such Agent is not reimbursed for such expenses by or on
behalf of the Borrower. The undertaking in this
Section 9.11 shall survive termination of the Aggregate Commitments, the payment of
all other Obligations, Secured Swap Obligations and Cash Management Obligations, and the
resignation of such Agent.

     9.12 Intercreditor Agreement. The Collateral Agent is authorized to enter into the
Intercreditor Agreement, and the parties hereto acknowledge, on behalf of themselves and their
Affiliates, that the Intercreditor Agreement is binding upon them and their Affiliates without
execution thereof.

96

 

ARTICLE X.

MISCELLANEOUS

     10.01 Amendments, Etc. Subject to the Intercreditor Agreement with respect to those matters as to
which Hedging Parties are entitled to vote thereunder, no amendment or waiver of any provision of
this Agreement or any other Loan Document (other than the Intercreditor Agreement), and no consent
to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case
may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given;
provided, however, that no such amendment, waiver or consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment or
mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of
them) or any scheduled or mandatory reduction of the Aggregate Commitments hereunder or under any
other Loan Document without the written consent of each Lender directly affected thereby, it being
understood that the waiver of (or amendment to the terms of) any mandatory prepayment of Loans
shall not constitute a postponement of any date scheduled for the payment of principal or
interest;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any
fees or other amounts payable hereunder or under any other Loan Document, without the written
consent of each Lender directly affected thereby; provided, however, that only the
consent of the Required Lenders shall be necessary (i) to amend the definition of “Default Rate”
or to waive any obligation of the Borrower to pay interest or Letter of Credit Fees at the Default
Rate and (ii) to change the manner of computation of any financial ratio (including any change in
any applicable defined term) used in determining the Applicable Rate that would result in a
reduction of any interest rate on any Loan or any fee payable hereunder;

     (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender;

     (f) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender;

     (g) except as otherwise permitted herein, release any Guarantor from the Guaranty without the
written consent of each Lender; or

97

 

     (h) release of all or substantially all of the Collateral hereunder without the written
consent of each Lender;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent or the Collateral Agent in addition to the
Lenders required above, affect the rights or duties of the Administrative Agent or the Collateral
Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender.

No amendment or waiver of any provision of the Intercreditor Agreement shall be effective unless
consented to in writing by the Required Lenders (and as otherwise required in the Intercreditor
Agreement), and each such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given.

     10.02 Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below), all
notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by telecopier,
or email as follows, and all notices and other communications expressly permitted hereunder to be
given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrower, the Administrative Agent, the Collateral Agent, the L/C Issuer
or the Swing Line Lender, to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

98

 

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic communications pursuant
to procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next Business Day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS
OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM
THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY
RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of
its Related Parties (collectively, the “Agent Parties”) have any
liability to the Borrower, any Lender, the L/C Issuer or any other Person for losses, claims,
damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out
of the Borrower’s or the Administrative Agent’s transmission of the Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities or expenses are
determined by a court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

     (d) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures
shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent, the Collateral

99

 

Agent, the L/C
Issuer and the Lenders. The Administrative Agent may also require that any such documents and
signatures be confirmed by a manually-signed original thereof; provided, however, that the failure
to request or deliver the same shall not limit the effectiveness of any facsimile document or
signature.

     (e) Change of Address, Etc. Each of the Borrower, the Administrative Agent, the L/C
Issuer and the Swing Line Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line
Lender. In addition, each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender.

     (f) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or
on behalf of the Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice specified herein, or
(ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The
Borrower shall indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related
Parties of each of them from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of the Borrower except to
the extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Person. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay
by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     10.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of external counsel for the Administrative Agent), in connection with
the syndication of the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents or any

100

 

amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
reasonable out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C
Issuer (including the fees, charges and disbursements of any external counsel for the
Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of
Credit issued hereunder, including all such reasonably out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

     (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each other Agent, each Lender and the L/C Issuer, and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and disbursements of any
external counsel for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by any Loan Party or any Subsidiary thereof arising out of, in
connection with, as a result of or in any other way associated with (i) the execution or delivery
of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or
thereby, and the performance by the parties hereto of their respective obligations hereunder or
thereunder, (ii) the Collateral, the Loan Documents and consummation of the transactions or events
(including the enforcement or defense thereof and any occupation, operation, use or maintenance of
Collateral or other property of a Loan Party) at any time associated therewith or contemplated
therein, (iii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply with the terms of
such Letter of Credit), (iv) any actual or alleged presence or release of Hazardous Materials on
or from any property owned or operated
by any Loan Party or any Subsidiary thereof, or any Environmental Liability related in any
way to any Loan Party or any Subsidiary thereof, or (v) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Loan Party or any
Subsidiary thereof, and regardless of whether any Indemnitee is a party thereto, in all cases,
whether or not caused by or arising, in whole or in part, out of the comparative, contributory or
sole negligence of the Indemnitee; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses (x) are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or
(y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document,
if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on
such claim as determined by a court of competent jurisdiction.

101

 

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails
to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by
it to the Administrative Agent (or any sub-agent thereof), each other Agent, the L/C Issuer or any
Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative
Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer
in its capacity as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The
obligations of the Lenders under this subsection (c) are subject to the provisions of Section
2.12(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any
damages arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby other than for direct or
actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent jurisdiction.

     (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations.

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made
to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C
Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by the Administrative Agent,
the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such
setoff had not occurred, and (b) each Lender and

102

 

the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect. The obligations of the Lenders and the L/C Issuer under clause (b) of the
preceding sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

     10.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this
Section, or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall
be construed to confer upon any Person (other than the parties hereto, their respective successors
and assigns permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

     (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case
of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $5,000,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise

103

 

consents (each such
consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single assignee (or to
an assignee and members of its Assignee Group) will be treated as a single
assignment for purposes of determining whether such minimum amount has been met.

     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans or the Commitment assigned, except that this
clause (ii) shall not apply to the Swing Line Lender’s rights and obligations in respect of
Swing Line Loans;

     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

     (A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is to a
Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with
respect to such Lender;

     (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the
obligation of the assignee to participate in exposure under one or more Letters
of Credit (whether or not then outstanding); and

     (D) the consent of the Swing Line Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment unless such assignment is
to a Lender, an Affiliate of a Lender or an Approved Fund.

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount, if any, required as set forth in Schedule
10.06; provided, however, that the Administrative Agent may, in its sole
discretion, elect to waive such processing and recordation fee in the case of any
assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire.

     (v) No Assignment to the Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

104

 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent
of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice
to, the Borrower or the Administrative Agent, sell participations to any Person (other than a
natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant. Subject to subsection (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and

105

 

3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.13 as
though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled
to the benefits of Section 3.01 unless the Borrower is notified of the participation sold
to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 3.01(e) as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the
use of a paper-based recordkeeping system, as the case may be, to the extent and as provided
for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state
laws based on the Uniform Electronic Transactions Act.

     (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’
notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to
the Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or
Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor
L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by
the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C
Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with
respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C
Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to
make Base Rate Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to
Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all
the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such resignation, including the right to require
the Lenders to make Base Rate

106

 

Committed Loans or fund risk participations in outstanding Swing
Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer
and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case
may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank of America with
respect to such Letters of Credit.

     10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the
Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, advisors and
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing provisions substantially the same as those of
this Section, to (i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result of a breach of this
Section or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of
their respective Affiliates on a nonconfidential basis from a source other than the Borrower.

     For purposes of this Section, “Information” means all information received from the
Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower or any
Subsidiary, provided that, in the case of information received from the Borrower or any
Subsidiary after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

     Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower or a Subsidiary, as
the case may be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public information in accordance
with applicable Law, including Federal and state securities Laws.

107

 

     10.08 Deposit Accounts; Right of Setoff. Each Loan Party hereby grants to L/C Issuer and each
Lender a security interest, a Lien, and a right of offset, each of which shall be in addition to
all other interests, Liens, and rights of L/C Issuer or any Lender at common Law, under the Loan
Documents, or otherwise, to secure the repayment of the Obligations, the Cash Management
Obligations and the Secured Swap Obligations upon and against (a) any and all moneys, securities or
other property (and the proceeds therefrom) of such Loan Party now or hereafter held or received by
or in transit to L/C Issuer or any Lender from or for the account of such Loan Party, whether for
safekeeping, custody, pledge, transmission, collection or otherwise, (b) any and all deposits
(general or special, time or demand, provisional or final, in whatever currency) of such Loan Party
with L/C Issuer or any Lender, and (c) any other credits and claims of such Loan Party at any time
existing against L/C Issuer or any Lender, including claims under certificates of deposit. If an
Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer and each of
their respective Affiliates is hereby authorized at any time and from time to time, to the fullest
extent permitted by applicable law, to foreclose upon such Lien and/or to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Affiliate to or for the credit or the account of the Borrower or any other
Loan Party against any and all of the Obligations, the Cash Management Obligations and the Secured
Swap Obligations to such Lender or the L/C Issuer, irrespective of whether or not such Lender or
the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and
although such obligations of the Borrower or such Loan Party may be contingent or unmatured or are
owed to a branch or office of such Lender or the L/C Issuer different from
the branch or office holding such deposit or obligated on such indebtedness. The rights of each
Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their
respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify the Borrower and
the Administrative Agent promptly after any such foreclosure or such setoff and application,
provided that the failure to give such notice shall not affect the validity of such
foreclosure or such setoff and application. The remedies of foreclosure and offset are separate
and cumulative, and either may be exercised independently of the other without regard to procedures
or restrictions applicable to the other.

     10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations hereunder.

108

 

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the Administrative Agent and
when the Administrative Agent shall have received counterparts hereof that, when taken together,
bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

     10.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as
long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter
of Credit shall remain outstanding.

     10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04, or
if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a
Defaulting Lender or in connection with any proposed amendment, modification, termination, waiver
or consent with respect to any of the provisions hereof as contemplated by Section 10.01,
the consent of Required Lenders shall have been obtained but the consent of one or more of such
other Lenders whose consent is required shall not have been obtained, if any other circumstance
exists hereunder that gives the Borrower the right to replace a Lender as a party hereto, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in, and consents required by, Section 10.06), all of its
interests, rights and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment), provided that:

109

 

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal
of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder and under the other Loan Documents (including any amounts under
Section 3.05) from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable Laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     10.14 Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

     (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT
OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

110

 

     (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF
THIS SECTION. EACH OF THE PARTIES HERETO HEREBY AGREES THAT SECTIONS 5-1401 AND
4-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THE LOAN
DOCUMENTS AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE
OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. IN FURTHERANCE OF THE FOREGOING, BORROWER AND EACH GUARANTOR
HEREBY IRREVOCABLY DESIGNATES AND APPOINTS CT CORPORATION SYSTEM, 111 EIGHTH AVENUE , NEW YORK,
NEW YORK 10011, AS AGENT OF BORROWER AND EACH GUARANTOR TO RECEIVE SERVICE OF ALL PROCESS BROUGHT
AGAINST BORROWER OR SUCH
GUARANTOR WITH RESPECT TO ANY SUCH PROCEEDING IN ANY SUCH COURT IN NEW YORK, SUCH SERVICE
BEING HEREBY ACKNOWLEDGED BY BORROWER AND EACH GUARANTOR TO BE EFFECTIVE AND BINDING SERVICE IN
EVERY RESPECT. COPIES OF ANY SUCH PROCESS SO SERVED SHALL ALSO BE SENT BY REGISTERED MAIL TO
BORROWER OR SUCH GUARANTOR AT ITS ADDRESS SET FORTH BELOW, BUT THE FAILURE OF BORROWER OR SUCH
GUARANTOR TO RECEIVE SUCH COPIES SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS AS
AFORESAID. BORROWER AND EACH GUARANTOR SHALL FURNISH TO ADMINISTRATIVE AGENT, L/C ISSUER AND
LENDERS A CONSENT OF CT CORPORATION SYSTEM AGREEING TO ACT HEREUNDER PRIOR TO THE EFFECTIVE DATE
OF THIS AGREEMENT. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ADMINISTRATIVE AGENT, L/C ISSUER AND
LENDERS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF
ADMINISTRATIVE AGENT, L/C ISSUER AND LENDERS TO BRING PROCEEDINGS AGAINST BORROWER OR EACH
GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION. IF FOR ANY REASON CT CORPORATION SYSTEM SHALL
RESIGN OR OTHERWISE CEASE TO ACT AS BORROWER’S OR EACH GUARANTOR’S AGENT, BORROWER AND SUCH
GUARANTOR HEREBY IRREVOCABLY AGREES TO (A) IMMEDIATELY DESIGNATE AND APPOINT A NEW AGENT
REASONABLY ACCEPTABLE TO ADMINISTRATIVE AGENT TO SERVE IN SUCH CAPACITY AND, IN SUCH EVENT, SUCH
NEW AGENT SHALL BE DEEMED TO BE SUBSTITUTED FOR CT CORPORATION SYSTEM FOR ALL PURPOSES HEREOF AND
(B) PROMPTLY DELIVER TO ADMINISTRATIVE AGENT THE WRITTEN CONSENT (IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO ADMINISTRATIVE AGENT) OF SUCH NEW AGENT AGREEING TO SERVE IN SUCH CAPACITY.

     10.15 Waiver of Jury Trial and Special Damages. EACH PARTY HERETO AND EACH OTHER LOAN PARTY HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST

111

 

EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO AND EACH OTHER LOAN PARTY (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION. EACH LOAN PARTY AND EACH LENDER HEREBY FURTHER (A) IRREVOCABLY
WAIVE, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN
ANY SUCH LITIGATION ANY “SPECIAL DAMAGES,” AS DEFINED BELOW, (B) CERTIFY THAT NO PARTY HERETO NOR
ANY REPRESENTATIVE OR AGENT OR COUNSEL
FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (C) ACKNOWLEDGE THAT IT HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
CONTAINED IN THIS SECTION. AS USED IN THIS SECTION, “SPECIAL DAMAGES” INCLUDES ALL SPECIAL,
CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE ANY
PAYMENTS OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER
PARTY HERETO.

     10.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction
contemplated hereby, the Borrower and each other Loan Party acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) the credit facility provided for hereunder
and any related arranging or other services in connection therewith (including in connection with
any amendment, waiver or other modification hereof or of any other Loan Document) are an
arm’s-length commercial transaction between the Borrower, each other Loan Party and their
respective Affiliates, on the one hand, and the Administrative Agent, the Syndication Agent and the
Arrangers, on the other hand, and the Borrower and each other Loan Party is capable of evaluating
and understanding and understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment, waiver or other
modification hereof or thereof); (ii) in connection with the process leading to such transaction,
the Administrative Agent, the Syndication Agent and any Arranger each is and has been acting solely
as a principal and is not the financial advisor, agent or fiduciary, for the Borrower, any other
Loan Party or any of their respective Affiliates, stockholders, creditors or employees or any other
Person; (iii) neither the Administrative Agent, the Syndication Agent nor any Arranger has assumed
or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower or any
other Loan Party with respect to any of the transactions contemplated hereby or the process leading
thereto,

112

 

including with respect to any amendment, waiver or other modification hereof or of any
other Loan Document (irrespective of whether the Administrative Agent, the Syndication Agent or any
Arranger advised or is currently advising the Borrower, any other Loan Party or any of their
respective Affiliates on other matters) and neither the Administrative Agent, the Syndication Agent
nor any Arranger has any obligation to the Borrower, any other Loan Party or any of their
respective Affiliates with respect to the transactions contemplated hereby except those obligations
expressly set forth herein and in the other Loan Documents; (iv) the Administrative Agent, the
Syndication Agent and each Arranger and their respective Affiliates may be engaged in a broad range
of transactions that involve interests that differ from those of the Borrower, the other Loan
Parties and their respective Affiliates, and neither the Administrative Agent nor the Arranger has
any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary
relationship; and (v) the Administrative Agent, the Syndication Agent and each Arranger have not
provided and will not provide any legal, accounting, regulatory or tax advice with respect to any
of the transactions contemplated hereby (including any amendment, waiver or other modification
hereof or of any other Loan Document) and each of the Borrower and the other Loan Parties has
consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate. Each of the Borrower and the
other Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against the Administrative Agent, the Syndication Agent and any Arranger with
respect to any breach or alleged breach of agency or fiduciary duty.

     10.17 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) 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.

     10.18 No General Partner’s Liability. The Administrative Agent and the Lenders agree for
themselves and their respective successors and assigns, including any subsequent holder of any
Note, that no claim under this Agreement or under any other Loan Document shall be made against
General Partner, and that no judgment, order or execution entered in any suit, action or
proceeding, whether legal or equitable, hereunder or on any other Loan Document shall be obtained
or enforced, against General Partner or its assets for the purpose of obtaining satisfaction and
payment of amounts owed under this Agreement or any other Loan Document.

     10.19 Time of the Essence. Time is of the essence of the Loan Documents.

     10.20 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Remainder of page intentionally left blank.]

113

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	TARGA RESOURCES PARTNERS LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Targa Resources GP LLC, its sole general	 	 
	 	 	 	 	partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Howard M. Tate 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Howard M. Tate	 	 
	 

	 	 	 	 	 	Vice President – Finance and Assistant	 	 
	 

	 	 	 	 	 	Treasurer	 	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Todd Mac Neill 	 
	 	 	Name:  	Todd Mac Neill 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender,

L/C Issuer and Swing Line Lender

 	 
	 	By:  	/s/ Adam H. Fey 	 
	 	 	Name:  	Adam H. Fey 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL

ASSOCIATION, as Syndication Agent and as a Lender

 	 
	 	By:  	/s/ Paul Pritchett 	 
	 	 	Name:  	Paul Pritchett 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL, A DIVISION

OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC., as

Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Gregory Hanson 	 
	 	 	Name:  	Gregory Hanson 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as

Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Scott Gildea 	 
	 	 	Name:  	Scott Gildea 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as

Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Brian Smith 	 
	 	 	Name:  	Brian Smith 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	/s/ Mark A. Cox 	 
	 	 	Name:  	Mark A. Cox 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Greg Smothers 	 
	 	 	Name:  	Greg Smothers 	 
	 	 	Title:  	 Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, as a Lender

 	 
	 	By:  	/s/ Eventa Robcinc 	 
	 	 	Name:  	Eventa Robcinc 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC., as a Lender

 	 
	 	By:  	/s/ Cahal Carmody 	 
	 	 	Name:  	Cahal Carmody 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	ABN AMRO BANK N.V., as a Lender

 	 
	 	By:  	/s/ Jim Moyes 	 
	 	 	Name:  	Jim Moyes 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ John Reed 	 
	 	 	Name:  	John Reed 	 
	 	 	Title:  	Director 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	/s/ Gregory E. George	 
	 	 	Name: 	 Gregory E. George	 
	 	 	Title:	 Managing Director	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/ Ashish Sethi	 
	 	 	Name:	 Ashish Sethi	 
	 	 	Title:	 Attorney-in-Fact	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ W. Bryan Chapman	 
	 	 	Name: 	 W. Bryan Chapman	 
	 	 	Title: 	 Vice President	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	COMPASS BANK, as a Lender

 	 
	 	By:  	/s/ Murray E. Brasseux	 
	 	 	Name: 	 Murray E. Brasseux	 
	 	 	Title: 	 Executive Vice President	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Tracy L. Harnisch	 
	 	 	Name: 	 Tracy L. Harnisch	 
	 	 	Title: 	 Assistant Vice President	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP., as a Lender

 	 
	 	By:  	/s/ Darrell Holley 	 
	 	 	Name:  	Darrell Holley 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ David Montgomery 	 
	 	 	Name:  	David Montgomery 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Kevin J. Utsey 	 
	 	 	Name:  	Kevin J. Utsey 	 
	 	 	Title:  	Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Josh Strong 	 
	 	 	Name:  	Josh Strong 	 
	 	 	Title:  	Corporate Banking Officer 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	GUARANTY BANK, as a Lender

 	 
	 	By:  	/s/ Jim R. Hamilton 	 
	 	 	Name:  	Jim R. Hamilton 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	NATIXIS, as a Lender

 	 
	 	By:  	/s/ Louis P. Laville, III 	 
	 	 	Name:  	Louis P. Laville, III 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Daniel Payer 	 
	 	 	Name:  	Daniel Payer 	 
	 	 	Title:  	Director 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	/s/ Richard L. Tavrow 	 
	 	 	Name:  	Richard L. Tavrow 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Irja R. Otsa 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	LEHMAN BROTHERS COMMERCIAL

BANK, as a Lender

 	 
	 	By:  	/s/ George Janes 	 
	 	 	Name:  	George Janes 	 
	 	 	Title:  	Chief Credit Officer 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, as a Lender

 	 
	 	By:  	/s/ James Morgan 	 
	 	 	Name:  	James Morgan 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Nupur Kumar 	 
	 	 	Name:  	Nupur Kumar 	 
	 	 	Title:  	Associate 	 
	 

[Credit Agreement Signature Page]

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P., as a Lender

 	 
	 	By:  	/s/ Mark Walton 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Credit Agreement Signature Page]

 

 

SCHEDULE 1.01

CERTAIN PERMITTED HEDGING PARTIES

Bank of America, N.A.

Bank of Montreal

BP Corporation North America Inc.

BP Products North America Inc.

ConocoPhillips Gas Power Marketing, a division of ConocoPhillips, Inc.

Coral Energy Resources LP

Deutsche Bank AG, New York Branch

ExxonMobil Corporation

J. Aron & Company

JPMorgan Chase Bank, N.A.

Merrill Lynch Commodities, Inc.

Morgan Stanley Capital Group, Inc.

Sempra Energy Trading Group.

Shell Trading (US) Company

Société Générale

Wachovia Bank, National Association

 

			
	*	 	In each case, the Hedging Party shall be the Affiliate which is trading entity of the
counterparties specified above.

 

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable
	                    Lender	 	Commitment	 	Percentage
	 
	Bank of America, N.A.
	 	$	29,750,000	 	 	 	5.950000000	%
	Wachovia Bank, National Association
	 	$	29,750,000	 	 	 	5.950000000	%
	Merrill Lynch Capital
	 	$	29,500,000	 	 	 	5.900000000	%
	The Royal Bank of Scotland plc
	 	$	29,500,000	 	 	 	5.900000000	%
	Royal Bank of Canada
	 	$	29,500,000	 	 	 	5.900000000	%
	BNP Paribas
	 	$	25,000,000	 	 	 	5.000000000	%
	Société Générale
	 	$	25,000,000	 	 	 	5.000000000	%
	BMO Capital Markets Financing, Inc.
	 	$	25,000,000	 	 	 	5.000000000	%
	ANB AMRO Bank N.V.
	 	$	25,000,000	 	 	 	5.000000000	%
	The Bank of Nova Scotia
	 	$	25,000,000	 	 	 	5.000000000	%
	Citibank, NA
	 	$	19,000,000	 	 	 	3.800000000	%
	Amegy Bank National Association
	 	$	19,000,000	 	 	 	3.800000000	%
	Compass Bank
	 	$	19,000,000	 	 	 	3.800000000	%
	U.S. Bank National Association
	 	$	19,000,000	 	 	 	3.800000000	%
	Fortis Capital Corp.
	 	$	19,000,000	 	 	 	3.800000000	%
	JPMorgan Chase Bank, N.A.
	 	$	19,000,000	 	 	 	3.800000000	%
	Comerica Bank
	 	$	19,000,000	 	 	 	3.800000000	%
	Guaranty Bank
	 	$	19,000,000	 	 	 	3.800000000	%
	Natixis
	 	$	19,000,000	 	 	 	3.800000000	%
	UBS Loan Finance LLC
	 	$	14,000,000	 	 	 	2.800000000	%
	Lehman Brothers Commercial Bank
	 	$	14,000,000	 	 	 	2.800000000	%
	Credit Suisse
	 	$	14,000,000	 	 	 	2.800000000	%
	Goldman Sachs Credit Partners L.P.
	 	$	14,000,000	 	 	 	2.800000000	%
	Total
	 	$	500,000,000	 	 	 	100.000000000	%

 

 

SCHEDULE 4.01

SECURITY DOCUMENTS

	1.	 	Guaranty Agreement.
	 
	2.	 	Pledge and Security Agreement.
	 
	3.	 	Deed of Trust, Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
Statement from Targa North Texas LP, to PRLAP, Inc., as Trustee and Bank of America, N.A., as
Collateral Agent.
	 
	4.	 	Deed of Trust, Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
Statement from Targa Intrastate Pipeline LP to PRLAP, Inc., as Trustee and Bank of America,
N.A., as Collateral Agent.
	 
	5.	 	UCC-1 Financing Statements related to all of the foregoing.

 

 

SCHEDULE 5.13

SUBSIDIARIES;

OTHER EQUITY INVESTMENTS

Part (a). Subsidiaries.

     Targa Resources Operating GP LLC, a Delaware limited liability company

     Targa
Resources Opererating LP, a Delaware limited partnership

     Targa North Texas GP LLC, a Delaware limited liability company

     Targa North Texas LP, a Delaware limited partnership

     Targa Intrastate Pipeline LLC, a Delaware limited liability company

Part (b). Other Equity Investments.

Part (b)(ii). Loan Party Information.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	ADDRESS OF	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PRINCIPAL	 	 	 	 	 	 	 	 	 	PRIOR
	 	 	JURISDICTION OF	 	PLACE OF	 	 	 	ORGANIZATIONAL	 	 	PRIOR	 	JURISDICTION OF
	NAME	 	FORMATION	 	BUSINESS	 	FEIN	 	ID NUMBER	 	 	NAMES	 	FORMATION
	 
	 	 	 	1000 Louisiana,
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ste. 4300
	 	 	 	 	 	 	 	 	 	 
	Targa Resources Partners LP
	 	Delaware	 	Houston, TX
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	77002	 	65-1295427	 	 	4239562	 	 	None	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1000 Louisiana,	 	 	 	 	 	 	 	 	 	 
	Targa Resources Operating GP LLC
	 	 	 	Ste. 4300
	 	 	 	 	 	 	 	 	 	 
	 
	 	Delaware	 	Houston, TX 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	77002	 	64-0949235	 	 	4292540	 	 	None	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1000 Louisiana,
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ste. 4300 
	 	 	 	 	 	 	 	 	 	 
	Targa Resources Operating LP
	 	Delaware	 	Houston, TX 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	77002	 	64-0949238	 	 	4292546	 	 	None	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1000 Louisiana,
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ste. 4300 
	 	 	 	 	 	 	 	 	 	 
	Targa North Texas GP LLC
	 	Delaware	 	Houston,TX 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	77002	 	None	 	 	4066474	 	 	None	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1000 Louisiana,
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ste. 4300
	 	 	 	 	 	 	 	 	 	 
	Targa North Texas LP
	 	Delaware	 	Houston, TX
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	77002	 	20-4036176	 	 	4067407	 	 	None	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1000 Louisiana,
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ste. 4300
	 	 	 	 	 	 	 	 	 	 
	Targa Intrastate Pipeline LLC
	 	Delaware	 	Houston, TX
77002	 	76-0634836	 	 	3173058	 	 	Dynegy Intrastate 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	Pipeline,
 LLC	 	None

 

 

Part (b)(ii). Other Equity Investments.

None.

 

 

SCHEDULE 5.21

MATERIAL REAL PROPERTY

Material Fee Owned Property:

     The cryogenic natural gas processing plant located in Wise County, Texas, including the real
property owned by Targa North Texas on which the Chico Plant and related equipment and operations
are located.

Material Leased Property:

     The cryogenic natural gas processing plant located in Shackelford County, Texas, including the
real property leased by Targa North Texas on which the Shackelford Plant and related equipment and
operations are located.

 

 

INSURANCE SUMMARY

          Insurance requirements with respect to business interruption and liability for injury to
persons and property as required by Section 6.07 shall be for coverages (and deductibles in
the case of liability coverage) as are customarily carried under similar circumstances and subject
to the following minimum amounts and periods:

	 	1)	 	Comprehensive General/Excess Liability Insurance covering liability for third party
property damage and/or bodily injury, with a minimum coverage of $100,000,000 per
occurrence (subject to customary annual aggregate limits).
	 
	 	2)	 	Business Interruption Insurance providing coverage for operations for not less than a
12 month period of indemnity with no more than a 60 day waiting period.

          As of the Closing Date, the Loan Parties maintain the actual insurance policies as set forth
on the following two pages, but such policies are not part of the minimum insurance requirements.

 

 

SCHEDULE 6.07

INSURANCE SUMMARY

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	RETENTION/	 	 
	 	 	LINE OF COVERAGE	 	LIMIT OF LIABILITY	 	DEDUCTIBLE	 	POLICY TERM
	1)

	 	Workers’ Compensation/Employer’s

Liability
	 	Statutory/$1MM per occurrence
	 	$250,000 per

occurrence
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	2)

	 	Business Auto Liability
	 	$1MM any one occurrence CSL

Self-Insure Auto Physical Damage
	 	$250,000 per

occurrence
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	3)

	 	Excess Liability (Includes Sudden & Accidental

Pollution)

1st Layer Excess Liability
	 	$35MM and in the aggregate as applicable excess
of underlying limits
(Includes Employment Practices Liability,
limited Errors & Omissions, Incidental Medical
Malpractice, etc.)
	 	As per Schedule of
Underlyings,
including $1MM GL
SIR.
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	4)

	 	2nd Layer Excess Liability
	 	$100MM xs $35MM
	 	Underlying
	 	10/31/06-10/31/07
	5)

	 	3rd Layer Excess Liability
	 	$25MM xs $135MM
	 	Underlying
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	6)

	 	4th
Layer Excess

Liability
	 	$140MM xs $160MM
	 	Underlying
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	7)

	 	5th
Layer Excess

Liability
	 	$100MM xs $300MM (total $400MM)
	 	Underlying
	 	10/31/06-10/31/07
	 
	 	 	 	 	 	 	 	 
	8)

	 	“All Risk” Onshore
Property Insurance
Coverage

Flood, Windstorm,
Earthquake are Annual Aggregate
Limits

 MLP will have
separate
Aggregate/Sublimits
under main Targa
policy
	 	$400MM per occurrence CSL Replacement Cost Value property damage
(except for ACV on old shut-down TMS gas plants/compressor
stations), boiler & machinery, EDP, transit, earthquake, flood,
windstorm, expediting expenses, extra expenses, product stored
below ground, construction projects, pollution cleanup. Program placed in following layers:
$50MM Primary (Incl. Flood/Windstorm)
$50MM xs $50MM Excess (Incl. F/W)
$300MM xs $100MM Excess (Excl. F/W)
	 	$500K (Interest)

Plants < $50MM

$1MM (100%)

Plants > $50MM

Windstorm/Flood: 2.0% of Insured Values, subject to
$2.5MM (100%) MIN and $10MM (100%)
MAX
	 	10/31/05-4/16/07
	 

	 	
	 	
	 		 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	RETENTION/	 	 
	 	 	LINE OF COVERAGE	 	LIMIT OF LIABILITY	 	DEDUCTIBLE	 	POLICY TERM
	9)

	 	Business Interruption/Contingent

Business Interruption
	 	Gross earnings – actual loss
sustained wording
24 Mos. Period of Indemnity
$10MM CBI Named
Customers/Suppliers
$5MM CBI Un-named
Customers/Suppliers
	 	30 day waiting period
	 	10/31/05-4/16/07
	 
	 	 	 	 	 	 	 	 
	10)

	 	Stand-Alone Terrorism Property/BI

Coverage
	 	$200MM per occurrence/policy

aggregate
	 	$1MM PD
30 day wait BI
	 	10/31/05-4/16/07

 

 

SCHEDULE 7.01

EXISTING LIENS

None.

 

 

SCHEDULE 7.09

AFFILIATE TRANSACTIONS

	1.	 	Borrower Partnership Agreement
	 
	2.	 	Contribution Agreement dated as of December 1, 2005 among Targa Midstream Services Limited
Partnership, Targa GP Inc., Targa LP Inc., Targa Downstream GP LLC, Targa North Texas GP LLC,
Targa Straddle GP LLC, Targa Permian GP LLC, Targa Versado GP LLC, Targa Downstream LP, Targa
North Texas, Targa Straddle LP, Targa Permian LP and Targa Versado LP (the “2005
Contribution Agreement”).
	 
	3.	 	Amendment to 2005 Contribution Agreement dated as of January 1, 2007.
	 
	4.	 	Contribution, Conveyance and Assumption Agreement dated as of February 14, 2007 among the
Borrower, Targa Operating LP, General Partner, Targa Operating GP LLC, Targa GP, Inc., Targa
LP, Inc., Targa Regulated Holdings LLC, Targa North Texas LP, and Targa North Texas GP LLC.
	 
	5.	 	Omnibus Agreement among Targa, the General Partner and the Borrower.
	 
	6.	 	Natural Gas Purchase Agreement dated as of January 1, 2007 between Targa Gas Marketing LLC
and Targa North Texas.
	 
	7.	 	Products Purchase Agreement dated as of January 1, 2007 between Targa Liquids Marketing and
Trade and Targa North Texas.

 

 

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

BORROWER:

Targa Resources Partners LP

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: Vice President — Finance

Telephone: 713.584.1024

Telecopier: 713.584.1523

Electronic Mail: howardtate@targaresources.com

Website Address: www.targaresources.com

U.S. Taxpayer Identification Number: 65-1295427

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions):

Bank of America, N.A.

901 Main St

Mail Code: TX1-492-14-11

Dallas, TX 75202

Attention: Ramon Gomez

Telephone: 214.209.2627

Telecopier: 214.290.8367

Electronic Mail: ramon.gomez_jr@bankofamerica.com

Account No.: 1292000883

Ref: Targa Resources

ABA# 026009593

Other Notices as Administrative Agent:

Bank of America, N.A.

Agency Management

100 Federal St

Mail Code: MA5-100-11-02

Boston, MA 02110

Attention: Todd Mac Neill

Telephone: 617.434.6842

Telecopier: 617.790.1361

Electronic Mail: Todd.G.MacNeill@bankofamerica.com

 

 

L/C ISSUER:

Bank of America, N.A.

Trade Operations

1 Fleet Way

Mail Code: PA6-580-02-30

Scranton, PA 18507

Attention: Michael Grizzanti

Telephone: 570.330.4214

Telecopier: 800.755.8743

Electronic Mail: michael.a.grizzanti@bankofamerica.com

SWING LINE LENDER:

Bank of America, N.A.

901 Main St

Mail Code: TX1-492-14-11

Dallas, TX 75202

Attention: Ramon Gomez

Telephone: 214.209.2627

Telecopier: 214.290.8367

Electronic Mail: ramon.gomez_jr@bankofamerica.com

Account No.: 1292000883

Ref: Targa Resources

ABA# 026009593

 

 

SCHEDULE 10.06

PROCESSING AND RECORDATION FEES

     The Administrative Agent will charge a processing and recordation fee (an “Assignment
Fee”) in the amount of $2,500 for each assignment; provided, however, that in
the event of two or more concurrent assignments to members of the same Assignee Group (which may be
effected by a suballocation of an assigned amount among members of such Assignee Group) or two or
more concurrent assignments by members of the same Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group), the Assignment Fee will be $2,500 plus
the amount set forth below:

	 	 	 	 	 	 	 	 	 
	Transaction	 	Assignment Fee	 	 	 	 
	First four concurrent assignments or suballocations to
members of an Assignee Group (or from members of an
Assignee Group, as applicable)
	 	 	-0-	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Each additional concurrent assignment or suballocation to a
member of such Assignee Group (or from a member of such
Assignee Group, as applicable)
	 	 	$      500exv10w2

 

Exhibit 10.2

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of February 14, 2007, is
entered into by and among TARGA RESOURCES PARTNERS LP, a Delaware limited partnership (“MLP”),
TARGA RESOURCES OPERATING LP, a Delaware limited partnership (“OLP”), TARGA RESOURCES GP LLC, a
Delaware limited liability company (“GP”), TARGA RESOURCES OPERATING GP LLC, a Delaware limited
liability company (“OLP GP”), TARGA GP INC., a Delaware corporation (“GP Inc.”), TARGA LP INC., a
Delaware corporation (“LP Inc.”), TARGA REGULATED HOLDINGS LLC, a Delaware limited liability
company (“TRH”), TARGA NORTH TEXAS GP LLC, a Delaware limited liability company (“North Texas GP”),
and TARGA NORTH TEXAS LP, a Delaware limited partnership (“North Texas LP”). The parties to this
agreement are collectively referred to herein as the “Parties.” Capitalized terms used herein shall
have the meanings assigned to such terms in Section 1.1.

RECITALS

     WHEREAS, GP, LP Inc. and GP Inc. have formed MLP, pursuant to the Delaware Revised Uniform
Limited Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business
activity that is approved by GP and that lawfully may be conducted by a limited partnership
organized pursuant to the Delaware LP Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, the
following actions have been taken prior to the date hereof:

1. GP Inc. formed North Texas GP under the terms of the Delaware Limited Liability Company Act (the
“Delaware LLC Act”), and contributed $1,000 in exchange for all of the member interests in North
Texas GP.

2. North Texas GP and LP Inc. formed North Texas LP under the terms of the Delaware LP Act, to
which North Texas GP contributed $500 and LP Inc. contributed $500 in exchange for a 50% general
partner interest and a 50% limited partner interest, respectively.

3. Targa Midstream Services Limited Partnership (“TMS”) conveyed beneficial title to the assets,
generally referred to as the North Texas Assets it acquired from Dynegy, Inc. (the “North Texas
Assets”) to North Texas LP on behalf of North Texas GP and LP Inc. in part as a capital
contribution and in exchange for a promissory note/acquisition payment obligation of $408,090,000
from North Texas GP and a promissory note/acquisition payment obligation of $408,090,000 from LP
Inc. (collectively the “Intercompany Debt”).

4. TRH conveyed all of its right, title and interest in and to the member interest in Targa
Intrastate Pipeline LLC, a Delaware limited liability company to North Texas LP.

5. North Texas LP assumed the obligations of North Texas GP and LP Inc. under the Intercompany
Debt.

6. TMS conveyed legal title to the North Texas Assets to North Texas LP on behalf of North Texas GP
and LP Inc.

7. GP Inc. formed GP, under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in GP.

8. GP, LP Inc. and GP Inc. formed MLP, under the terms of the Delaware LP Act, to which GP
contributed $20 and LP Inc. and GP Inc. each contributed $490 in exchange for a 2% general partner
interest, a 49% limited partner interest and a 49% limited partner interest, respectively
(together, the “MLP Formation Interests”).

9. MLP formed OLP GP under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in OLP GP.

10. OLP GP and MLP formed OLP, under the terms of the Delaware LP Act, to which OLP GP contributed
$0.01 and MLP contributed $999.99 in exchange for a 0.001% general partner interest and 99.999%
limited partner interest, respectively.

- 1 -

 

11. MLP, as Borrower, entered into the Credit Agreement with Bank of America N.A. as Administrative
Agent and the other lenders party thereto.

     WHEREAS, immediately prior to the closing of the MLP’s initial public offering (“MLP IPO”), GP
Inc. will convey a part of its member interest (the “Interest”) in North Texas GP to GP equal to 2%
of the equity value of the MLP at the end of the MLP IPO closing based upon the IPO pricing.

     WHEREAS, at the MLP IPO closing, each of the following actions shall occur:

1. GP will convey the Interest to MLP in exchange for (a) a continuation of its 2% general partner
interest and (b) the incentive distribution rights (the “IDRs”).

2. GP Inc. will convey its remaining member interest in North Texas GP to MLP in exchange for
5,475,052 subordinated limited partner units (“Sub Units”) representing limited partner interests
with an 18.94% interest in the MLP.

3. LP Inc. will convey all of its limited partner interest in North Texas LP to MLP in exchange for
6,053,179 Sub Units with a 20.94% interest in MLP.

4. The public, through the Underwriters, will contribute $352.8 million in cash, less the net
amount of $21.7 payable to the Underwriters after taking into account the Underwriters’ discount
and the structuring fees payable to the Underwriters in exchange for 16,800,000 Common Units in MLP
(representing a 58.1% interest).

5. MLP will (a) pay transaction expenses associated with the transactions contemplated by this
Agreement in the amount of approximately $4.0 million (exclusive of the Underwriter’s spread and
the structuring fee) and (b) pay fees and expenses associated with the Credit Agreement in the
amount of approximately $4.2 million and (c) contribute the balance of the cash received from the
public to North Texas LP as a capital contribution (50% on behalf of North Texas GP and 50% on
behalf of LP Inc.).

6. MLP will borrow $342.5 million from new lenders under the Credit Agreement and contribute those
funds to North Texas LP as a capital contribution (50% on behalf of North Texas GP).

7. MLP will convey its member interest in North Texas GP and its limited partner interest in North
Texas LP to the OLP as a capital contribution (of which 0.001% of such contribution will be made to
OLP on behalf of OLP GP).

8. North Texas LP will use the various funds contributed to it to retire the Intercompany Debt.

9. The agreements of limited partnership and the limited liability company agreements of the
aforementioned entities will be amended and restated to the extent necessary to reflect the
applicable matters set forth above and as contained in this Agreement.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 The following capitalized terms shall have the meanings given below.

(a) “Acquisition” means consummation of the transactions contemplated by the terms of this
Agreement.

(b) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

(c) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

- 2 -

 

(d) “Credit Agreement” means the Credit Agreement, dated as of February 14, 2007, among MLP, OLP,
the subsidiaries of the MLP, and Bank of America, N.A., as administrative agent for the lenders
named therein.

(e) “Effective Time” shall mean 8:00 a.m. New York, New York time on February 14, 2007.

(f) “IDRs” means “Incentive Distribution Rights” as such term is defined in the Partnership
Agreement.

(g) “MLP” has the meaning assigned to such term in the opening paragraph of this Agreement.

(h) “Offering” means the initial public offering by MLP of Common Units.

(i) “Option” means the over-allotment option afforded the Underwriters in the Offering.

(j) “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of MLP
dated as of February 14, 2007.

(k) “Sub Unit” means “Subordinated Unit” as such term is defined in the Partnership Agreement.

(l) “Underwriters” means Citigroup Global Markets Inc., Goldman, Sachs & Co., UBS Securities LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and A.G. Edwards & Sons, Inc., Credit Suisse
Securities (USA) LLC, Lehman Brothers Inc., Wachovia Capital Markets, LLC, Raymond James &
Associates, Inc., RBC Capital Markets Corporation and Sanders Morris Harris Inc.

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

     Section 2.1 Contribution of the Interest to GP. GP Inc. hereby grants, contributes, bargains,
conveys, assigns, transfers, sets over and delivers to GP, its successors and assigns, for its and
their own use forever, all right, title and interest in and to the Interest and GP hereby accepts
the Interest.

     Section 2.2 Contribution of the Interest by GP to MLP. GP hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns,
for its and their own use forever, all right, title and interest in and to the Interest, as a
capital contribution, in exchange for (a) a continuation of its 2% general partner interest in MLP
and (b) the issuance of the IDRs, and MLP hereby accepts the Interest as a contribution to the
capital of MLP.

     Section 2.3 Contribution of remaining member interest in North Texas GP to MLP. GP Inc. hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
its remaining member interest in North Texas GP after the contribution of the Interest to GP and
MLP, in exchange for 5,475,052 million Sub Units representing limited partner interests with a
18.94% interest in the MLP, and MLP hereby accepts such member interests in North Texas GP.

     Section 2.4 Contribution of limited partner interest in North Texas LP to MLP. LP Inc. hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
the limited partner interest in North Texas LP, in exchange for 6,053,179 million Sub Units
representing limited partner interests with a 20.94% interest in the MLP, and MLP hereby accepts
such member interests in North Texas LP.

     Section 2.5 Public Cash Contribution. The Parties acknowledge a capital contribution by the
public through the Underwriters to MLP of $352.8 million in cash ($331.1 million net to MLP after
taking into account the Underwriters’ discount and the structuring fee payable to the Underwriters,
but before paying offering expenses) in exchange for 16,800,000 Common Units, representing a 58.1%
interest in MLP.

- 3 -

 

     Section 2.6 Payment of Transaction Costs. The Parties acknowledge the payment by MLP, in
connection with the Acquisition, of transaction expenses in the amount of $4.0 million (exclusive
of the Underwriter’s discount and the structuring fee but including fees and expenses related to
the Credit Agreement).

     Section 2.7 Capital Contribution by MLP to North Texas LP. MLP hereby distributes, grants,
bargains, conveys, assigns, transfers, sets over and delivers to North Texas LP as a capital
contribution (50% of which is made on behalf of North Texas GP) $665.4 million.

     Section 2.8 Contribution by MLP of limited partner interest in North Texas LP to OLP. MLP
hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to OLP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to the limited partner interest in North Texas LP (of which 0.001% is being contributed on behalf
of OLP GP) as a capital contribution, and OLP hereby accepts such limited partner interest as a
contribution to the capital of OLP.

     Section 2.9 Contribution by MLP of all member interest in North Texas GP to OLP. MLP hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to OLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
the member interest in North Texas GP (of which 0.001% is being contributed on behalf of OLP GP) as
a capital contribution, and OLP hereby accepts such member interest as a contribution to the
capital of OLP.

     Section 2.10 Redemption of MLP Formation Interests. MLP hereby redeems and retires the MLP
Formation Interests for an aggregate payment of $1,000, and GP, LP Inc. and GP Inc. hereby
acknowledge the redemption of the MLP Formation Interests and accept payment for such interests
equal to the amounts that each contributed to MLP at its formation.

     Section 2.11 Issuance of Certificates. At the Closing, MLP shall issue to each of GP Inc. and
LP Inc. a certificate or certificates, which may be held in book entry form, representing the
respective number of Sub Units to be issued to each of GP Inc. and LP Inc. pursuant to Section 2.3
and Section 2.4.

     Section 2.12 Certificate Legend. The certificates evidencing the Sub Units delivered pursuant
to Section 2.3 and Section 2.4 shall bear a legend substantially in the form set forth below and
containing such other information as MLP may deem necessary or appropriate:

THE HOLDER OF THIS SECURITY ACKNOWLEDGES FOR THE BENEFIT OF TARGA RESOURCES PARTNERS LP (THE
“PARTNERSHIP”) THAT THIS SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED IF SUCH TRANSFER WOULD (A) VIOLATE THE THEN APPLICABLE FEDERAL OR STATE SECURITIES LAWS
OR RULES AND REGULATIONS OF THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION
OR ANY OTHER GOVERNMENTAL AUTHORITY WITH JURISDICTION OVER SUCH TRANSFER, (B) TERMINATE THE
EXISTENCE OR QUALIFICATION OF THE PARTNERSHIP UNDER THE LAWS OF THE STATE OF DELAWARE, OR (C) CAUSE
THE PARTNERSHIP TO BE TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED
AS AN ENTITY FOR FEDERAL INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). TARGA
RESOURCES GP LLC, THE GENERAL PARTNER OF THE PARTNERSHIP, MAY IMPOSE ADDITIONAL RESTRICTIONS ON THE
TRANSFER OF THIS SECURITY IF IT RECEIVES AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE NECESSARY
TO AVOID A SIGNIFICANT RISK OF THE PARTNERSHIP BECOMING

TAXABLE AS A CORPORATION OR OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX
PURPOSES.

ARTICLE 3

ADDITIONAL TRANSACTIONS

     Section 3.1 Purchase of Additional Common Units. If the Option is exercised in whole or in
part, the public, through the Underwriters, will contribute additional cash to MLP in exchange for
up to an additional 2,520,000 Common Units.

- 4 -

 

     Section 3.2 Reducing amounts outstanding under Credit Agreement. The Parties acknowledge, in
the event that the Option is exercised in whole or in part, MLP will use the net proceeds from the
issuance of additional Common Units to pay the lenders under the Credit Agreement to reduce
outstanding borrowings under the Credit Agreement.

ARTICLE 4

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale,
conveyances, instruments, notices, releases, acquittances and other documents, and will do all such
other acts and things, all in accordance with applicable law, as may be necessary or appropriate
(a) more fully to assure that the applicable Parties own all of the properties, rights, titles,
interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, or (b) more fully and effectively to vest in the applicable Parties and
their respective successors and assigns beneficial and record title to the interests contributed
and assigned by this Agreement or intended so to be and to more fully and effectively carry out the
purposes and intent of this Agreement.

ARTICLE 5

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall
be effective and operative in accordance with Article 6, without further action by any party
hereto.

ARTICLE 6

MISCELLANEOUS

     Section 6.1 Order of Completion of Transactions. The contribution of the Interest to GP
referenced in Section 2.1 is deemed to have occurred immediately prior to the closing of the MLP
IPO whereas all of the other actions referenced in Section 2.2 through 2.12 shall occur at the
closing of the MLP IPO. Following the completion of the transactions as provided in Article 2, the
transactions, if they occur, provided for in Article 3, shall be completed.

     Section 6.2 Headings; References; Interpretation. All Article and Section headings in this
Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement, term
or matter shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

     Section 6.3 Successors and Assigns. The Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns.

     Section 6.4 No Third Party Rights. The provisions of this Agreement are intended to bind the
Parties as to each other and are not intended to and do not create rights in any other person or
confer upon any other person any benefits, rights or remedies and no person is or is intended to be
a third party beneficiary of any of the provisions of this Agreement.

- 5 -

 

     Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts, all of
which together shall constitute one agreement binding on the parties hereto.

     Section 6.6 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware applicable to contracts made and to be performed wholly
within such state without giving effect to conflict of law principles thereof.

     Section 6.7 Severability. If any of the provisions of this Agreement are held by any court of
competent jurisdiction to contravene, or to be invalid under, the laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties as expressed in this
Agreement at the time of execution of this Agreement.

     Section 6.8 Amendment or Modification. This Agreement may be amended or modified from time to
time only by the written agreement of all the Parties. Each such instrument shall be reduced to
writing and shall be designated on its face as an Amendment to this Agreement.

     Section 6.9 Integration. This Agreement and the instruments referenced herein supersede all
previous understandings or agreements among the Parties, whether oral or written, with respect to
their subject matter. This document and such instruments contain the entire understanding of the
Parties with respect to the subject matter hereof and thereof. No understanding, representation,
promise or agreement, whether oral or written, is intended to be or shall be included in or form
part of this Agreement unless it is contained in a written amendment hereto executed by the parties
hereto after the date of this Agreement.

     Section 6.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

- 6 -

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 
	 	Targa Resources Partners LP

 	 
	 	By:  	Targa Resources GP LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                                 /s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	Targa Resources GP LLC

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	Targa Resources Operating LP

 	 
	 	By:  	Targa Resources Operating GP LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                                 /s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	Targa Resources Operating GP LLC

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	 	 
	 	By:  	                                                 /s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 

- 7 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	Targa LP Inc.

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	Targa Regulated Holdings LLC

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 
	 	Targa North Texas GP LLC

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 
	 	Targa North Texas LP

 	 
	 	By:  	Targa North Texas GP LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 	By:  	                                                 /s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]