Document:

<PAGE>   1
                                                                    EXHIBIT 10.F

                                                                  CONFORMED COPY

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                           EL PASO ENERGY CORPORATION

                                   ----------

                             $2,000,000,000 364-DAY
                        REVOLVING CREDIT AND COMPETITIVE
                           ADVANCE FACILITY AGREEMENT

                           Dated as of August 4, 2000

                                   ----------

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent
                              and CAF Advance Agent

                     CITIBANK, N.A. and ABN AMRO BANK, N.V.,
                           as Co-Documentation Agents

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

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            Page
                                                                                                            ----
<S>                                                                                                         <C>
ARTICLE I      DEFINITIONS AND ACCOUNTING TERMS...............................................................1
               SECTION 1.1  Certain Defined Terms.............................................................1
               SECTION 1.2  Computation of Time Periods......................................................17
               SECTION 1.3  Accounting Terms.................................................................17
               SECTION 1.4  References.......................................................................18

ARTICLE II     AMOUNTS AND TERMS OF THE ADVANCES.............................................................18
               SECTION 2.1  The Revolving Credit Advances....................................................18
               SECTION 2.2  Making the Revolving Credit Advances.............................................18
               SECTION 2.3  Evidence of Debt.................................................................20
               SECTION 2.4  CAF Advances.....................................................................20
               SECTION 2.5  Procedure for CAF Advance Borrowings.............................................20
               SECTION 2.6  CAF Advance Payments.............................................................24
               SECTION 2.7  Evidence of Debt.................................................................24
               SECTION 2.8  Fees.............................................................................25
               SECTION 2.9  Reduction of the Commitments.....................................................25
               SECTION 2.10  Repayment of Advances...........................................................26
               SECTION 2.11  Interest on Revolving Credit Advances...........................................26
               SECTION 2.12  Additional Interest on Eurodollar Rate Advances.................................26
               SECTION 2.13  Interest Rate Determination.....................................................27
               SECTION 2.14  Voluntary Conversion of Advances................................................28
               SECTION 2.15  Optional and Mandatory Prepayments..............................................29
               SECTION 2.16  Increased Costs.................................................................29
               SECTION 2.17  Increased Capital...............................................................30
               SECTION 2.18  Illegality......................................................................31
               SECTION 2.19  Pro Rata Treatment, Payments and Computations...................................31
               SECTION 2.20  Taxes...........................................................................32
               SECTION 2.21  Sharing of Payments, Etc........................................................35
               SECTION 2.22  Use of Proceeds.................................................................35
               SECTION 2.23  Extension of Stated Termination Date............................................35
               SECTION 2.24  [Intentionally Left Blank]......................................................36
               SECTION 2.25  Replacement of Lenders..........................................................37

ARTICLE III    CONDITIONS OF EFFECTIVENESS AND LENDING.......................................................38
               SECTION 3.1  Conditions Precedent to Effectiveness of this Agreement..........................38
               SECTION 3.2  Conditions Precedent to Initial Advances.........................................38
               SECTION 3.3  Conditions Precedent to Initial Advances to Any Borrowing Subsidiary.............39
               SECTION 3.4  Conditions Precedent to Each Borrowing...........................................40
</TABLE>

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<TABLE>
<CAPTION>
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<S>                                                                                                         <C>
ARTICLE IV     REPRESENTATIONS AND WARRANTIES................................................................40
               SECTION 4.1  Representations and Warranties of the Borrowers..................................40

ARTICLE V      COVENANTS OF THE BORROWERS....................................................................43
               SECTION 5.1  Affirmative Covenants............................................................43
               SECTION 5.2  Negative Covenants...............................................................44
               SECTION 5.3  Reporting Requirements...........................................................48
               SECTION 5.4  Restrictions on Material Subsidiaries............................................50

ARTICLE VI     GUARANTEE.....................................................................................50
               SECTION 6.1  Guarantees.......................................................................50
               SECTION 6.2  No Subrogation...................................................................51
               SECTION 6.3  Amendments, etc. with respect to the Obligations; Waiver of Rights...............51
               SECTION 6.4  Guarantee Absolute and Unconditional.............................................52
               SECTION 6.5  Reinstatement....................................................................53

ARTICLE VII    EVENTS OF DEFAULT.............................................................................53
               SECTION 7.1  Event of Default.................................................................53

ARTICLE VIII   THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT............................................56
               SECTION 8.1  Authorization and Action.........................................................56
               SECTION 8.2  Administrative Agent's and CAF Advance Agent's Reliance, Etc.....................57
               SECTION 8.3  Chase and Affiliates.............................................................57
               SECTION 8.4  Lender Credit Decision...........................................................57
               SECTION 8.5  Indemnification..................................................................58
               SECTION 8.6  Successor Administrative Agent and CAF Advance Agent.............................58
               SECTION 8.7  Syndication Agent; Co-Documentation Agents.......................................59

ARTICLE IX     MISCELLANEOUS.................................................................................59
               SECTION 9.1  Amendments, Etc..................................................................59
               SECTION 9.2  Notices, Etc.....................................................................60
               SECTION 9.3  No Waiver; Remedies..............................................................60
               SECTION 9.4  Costs and Expenses; Indemnity....................................................60
               SECTION 9.5  Right of Set-Off.................................................................61
               SECTION 9.6  Binding Effect...................................................................62
               SECTION 9.7  Assignments and Participations...................................................62
               SECTION 9.8  Confidentiality..................................................................64
               SECTION 9.9  Consent to Jurisdiction..........................................................65
               SECTION 9.10  GOVERNING LAW...................................................................66
               SECTION 9.11  Rate of Interest................................................................66
               SECTION 9.12  Execution in Counterparts.......................................................66
</TABLE>

<PAGE>   4

                                    SCHEDULE

Schedule I     Commitments, Addresses, Etc.

                                    EXHIBITS

Exhibit A      Form of Note
Exhibit B      Form of Notice of Borrowing
Exhibit C      Form of CAF Advance Request
Exhibit D      Form of CAF Advance Offer
Exhibit E      Form of CAF Advance Confirmation
Exhibit F      Form of Assignment and Acceptance
Exhibit G      Form of Opinion of [Associate General][Senior] Counsel
                  of the Company
Exhibit H      Form of Opinion of New York Counsel to the
                  Company
Exhibit I      Form of Process Agent Letter
Exhibit J      Form of Joinder Agreement
Exhibit K      Form of Opinion of [Associate General][Senior] Counsel of
                  the Company
Exhibit L      Form of Opinion of New York Counsel to the Company
Exhibit M      Form of Extension Request

<PAGE>   5

                  $2,000,000,000 364-DAY REVOLVING CREDIT AND COMPETITIVE
ADVANCE FACILITY AGREEMENT, dated as of August 4, 2000, among EL PASO ENERGY
CORPORATION, a Delaware corporation (the "Company"), EL PASO NATURAL GAS
COMPANY, a Delaware corporation ("EPNGC"), TENNESSEE GAS PIPELINE COMPANY, a
Delaware corporation ("Tennessee"), the several banks and other financial
institutions from time to time parties to this Agreement (the "Lenders"), THE
CHASE MANHATTAN BANK, a New York banking corporation, as administrative agent
(in such capacity, the "Administrative Agent") and as CAF Advance Agent (in such
capacity, the "CAF Advance Agent") for the Lenders hereunder, CITIBANK, N.A. and
ABN AMRO BANK, N.V., as co-documentation agents (in such capacity, the
"Co-Documentation Agents") for the Lenders, and BANK OF AMERICA, N.A., as
syndication agent (in such capacity, the "Syndication Agent") for the Lenders.

                  The parties hereto hereby agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

                  SECTION I.1 Certain Defined Terms. As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

                  "Administrative Agent" has the meaning assigned to such term
         in the preamble hereof.

                  "Advance" means an advance by a Lender to any Borrower
         pursuant to Article II, and refers to a Base Rate Advance, a Eurodollar
         Rate Advance or a CAF Advance.

                  "Affiliate" means as to any Person, any other Person that,
         directly or indirectly, controls, is controlled by or is under common
         control with such Person or is a director or officer of such Person.
         The term "control" (including the terms "controlled by" or "under
         common control with") means, with respect to any Person, the
         possession, direct or indirect, of the power to vote 20% or more of the
         securities having ordinary voting power for the election of directors
         of such Person or to direct or cause the direction of the management
         and policies of such Person, whether through ownership of voting
         securities or by contract or otherwise. Neither a director nor any
         officer of a Person, in such capacity, shall be deemed an "Affiliate"
         of such Person for purposes of this Agreement.

                  "Agreement" means this 364-Day Revolving Credit and
         Competitive Advance Facility, as amended, supplemented or otherwise
         modified from time to time.

                  "Alternate Program" means any program providing for the sale
         or other disposition of trade or other receivables entered into by the
         Company or a Subsidiary which is in addition to or in replacement of
         the program evidenced by either Receivables

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         Purchase and Sale Agreement (whether or not either Receivables Purchase
         and Sale Agreement shall then be in effect), provided that such program
         is on terms (a) substantially similar to either Receivables Purchase
         and Sale Agreement (as modified to comply with FASB 125 or similar
         policies or guidelines from time to time in effect) or (b) customary
         for similar transactions as reasonably determined by the Administrative
         Agent.

                  "Applicable Eurodollar Rate Margin" with respect to any
         Eurodollar Rate Advance to any Borrower means for any day the rate per
         annum set forth below opposite the applicable S&P Bond Rating and
         Moody's Bond Rating in effect on such day for such Borrower:

<TABLE>
<CAPTION>
  Bond Rating                  Applicable Eurodollar
 (S&P/Moody's)        Level         Rate Margin
-----------------     -----    ---------------------
<S>                   <C>      <C>
A/A2 or higher          I             .180%
A-/A3                   II            .270%
BBB+/Baa1               III           .310%
BBB/Baa2                IV            .400%
BBB-/Baa3               V             .550%
BB+/Ba1 or lower        VI            .800%;
</TABLE>

         provided that (i) if the Bond Ratings for any Borrower do not fall
         within the same Level, the Applicable Eurodollar Rate Margin applicable
         to such day will be the percentage opposite the Bond Rating that is at
         the higher level (Level I being the highest and Level VI being the
         lowest Level), (ii) in the event a Bond Rating for a Borrower is not
         available from one of the Rating Agencies, the Applicable Eurodollar
         Rate Margin will be based on the Bond Rating of the other Rating
         Agency, (iii) in the event a Bond Rating for the Company is available
         from none of the Rating Agencies, the Applicable Eurodollar Rate Margin
         for the Company will be the percentage opposite Level VI, and (iv) in
         the event a Bond Rating for a Borrowing Subsidiary is available from
         none of the Rating Agencies, the Applicable Eurodollar Rate Margin for
         such Borrower will be determined using the Bond Ratings of the Company
         (unless there is another Borrower (the "Intermediate Parent") that
         directly or indirectly owns 100% of the common stock of such Borrower
         and the Intermediate Parent has a Bond Rating in effect, in which case,
         the Applicable Eurodollar Rate Margin for such Borrower will be
         determined using the Bond Ratings of the Intermediate Parent of such
         Borrower); provided, that for each day on which the aggregate principal
         amount of the Advances outstanding hereunder is equal to or greater
         than 25% of the aggregate amount of the total Commitments hereunder,
         the Applicable Eurodollar Rate Margin for each Borrower will be
         increased by .125% for such day.

                  "Applicable LIBO Rate" means in respect of any CAF Advance
         requested pursuant to a LIBO Rate CAF Advance Request, an interest rate
         per annum equal to the rate which appears on Page 3750 of the Telerate
         Service (or any successor or substitute page of such Service, or any
         successor to or substitute for such service providing rate

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         quotations comparable to those currently provided on such page of such
         service, as determined by the Administrative Agent from time to time
         for purposes of providing quotations of interest rates applicable to
         Dollar deposits in the London interbank market) as at approximately
         11:00 A.M., London time, two Business Days prior to the beginning of
         the period for which such CAF Advance is to be outstanding as the rate
         for Dollar deposits with a maturity comparable to such period.

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

                  "Base Rate" means for any day, a rate per annum (adjusted to
         the nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%, rounded
         upwards to the next highest 1/16 of 1%) equal to the greater of (a) the
         Prime Rate in effect on such day and (b) the Effective Federal Funds
         Rate in effect on such day plus 1/2 of 1%. Any change in the Base Rate
         due to a change in the Prime Rate or the Effective Federal Funds Rate
         shall be effective as of the opening of business on the effective day
         of such change in the Prime Rate or the Effective Federal Funds Rate,
         respectively.

                  "Base Rate Advance" means an Advance which bears interest as
         provided in Section 2.11(a)(i).

                  "Bond Rating" means a rating assigned to a Borrower"s senior
         long-term unsecured debt by any of the Rating Agencies.

                  "Borrowers" means the collective reference to the Company and
         each Borrowing Subsidiary; each a "Borrower".

                  "Borrowing" means a borrowing consisting of Advances of the
         same Type made on the same day by the Lenders and, in the case of
         Eurodollar Rate Advances, having Interest Periods of the same duration,
         it being understood that there may be more than one Borrowing on a
         particular day.

                  "Borrowing Subsidiary" means EPNGC, Tennessee and each other
         domestic Subsidiary of the Company which has been designated by the
         Company as a "Borrowing Subsidiary" by written notice to the
         Administrative Agent, which designation shall not have been revoked by
         written notice by the Company to the Administrative Agent (provided,
         that no such designation shall be revoked if either (a) any Default or
         Event of Default shall have occurred and be continuing or (b) any
         Advance to such Borrowing Subsidiary, or any interest accrued thereon,
         shall be outstanding); collectively, the "Borrowing Subsidiaries". For
         avoidance of doubt, (i) Tennessee may be undesignated as a Borrowing
         Subsidiary by written notice to the Administrative Agent by the Company
         and (ii) EPNGC shall always be a Borrower hereunder.

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                  "Business Day" means a day of the year on which banks are not
         required or authorized to close in New York, New York and, if the
         applicable Business Day relates to any Eurodollar Rate Advances or LIBO
         Rate CAF Advances, on which dealings are carried on in the London
         interbank market.

                  "Business Entity" means a partnership, limited partnership,
         limited liability partnership, corporation (including a business
         trust), limited liability company, unlimited liability company, joint
         stock company, trust, unincorporated association, joint venture or
         other entity.

                  "CAF Advance" means an Advance made pursuant to Sections 2.4
         and 2.5.

                  "CAF Advance Agent" has the meaning assigned to such term in
         the preamble hereof.

                  "CAF Advance Availability Period" means the period from and
         including the Closing Date until the earlier of (a) the date which is 7
         days prior to the Stated Termination Date and (b) the Termination Date.

                  "CAF Advance Confirmation" means each confirmation by the
         applicable Borrower of its acceptance of CAF Advance Offers, which CAF
         Advance Confirmation shall be substantially in the form of Exhibit E
         and shall be delivered to the CAF Advance Agent by telecopy.

                  "CAF Advance Interest Payment Date" means as to each CAF
         Advance, each interest payment date specified by the applicable
         Borrower for such CAF Advance in the related CAF Advance Request.

                  "CAF Advance Lenders" means Lenders from time to time
         designated by the Company, in consultation with the CAF Advance Agent,
         as CAF Advance Lenders as provided in Section 2.4.

                  "CAF Advance Maturity Date" means as to any CAF Advance, the
         date specified by the applicable Borrower pursuant to Section
         2.5(d)(ii) in its acceptance of the related CAF Advance Offer.

                  "CAF Advance Offer" means each offer by a CAF Advance Lender
         to make CAF Advances pursuant to a CAF Advance Request, which CAF
         Advance Offer shall contain the information specified in Exhibit D and
         shall be delivered to the CAF Advance Agent by telephone, immediately
         confirmed by telecopy.

                  "CAF Advance Request" means each request by the applicable
         Borrower for CAF Advance Lenders to submit bids to make CAF Advances,
         which request shall contain the information in respect of such
         requested CAF Advances specified in Exhibit C and shall

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<PAGE>   9

         be delivered to the CAF Advance Agent in writing, by telecopy, or by
         telephone, immediately confirmed by telecopy.

                  "Capitalization" of any Person means the sum (without
         duplication) of (a) consolidated Debt of such Person and its
         consolidated Subsidiaries, plus (b) the aggregate amount of Guaranties
         by such Person and its consolidated Subsidiaries, plus (c) the
         consolidated common and preferred stockholders' equity of such Person
         and its consolidated Subsidiaries, plus (d) the cumulative amount by
         which stockholders" equity of such Person shall have been reduced by
         reason of non-cash write downs of long-term assets from and after the
         Effective Date.

                  "Chase" means The Chase Manhattan Bank, a New York banking
         corporation.

                  "Closing Date" has the meaning assigned to such term in
         Section 3.2.

                  "Co-Documentation Agents" has the meaning assigned to such
         term in the preamble hereof.

                  "Commitment" means as to any Lender, the obligation of such
         Lender to make Revolving Credit Advances to the Borrowers hereunder in
         an aggregate principal amount at any one time outstanding not to exceed
         the amount set forth opposite such Lender's name on Schedule I (as such
         Schedule I is amended from time to time pursuant to Section 9.7(c)), as
         such amount may be reduced from time to time in accordance with the
         provisions of this Agreement.

                  "Commitment Expiration Date" has the meaning assigned to such
         term in Section 2.23(a).

                  "Commitment Percentage" means as to any Lender at any time,
         the percentage which such Lender's Commitment then constitutes of the
         aggregate Commitments (or, at any time after the Commitments shall have
         expired or terminated, the percentage which the aggregate principal
         amount of such Lender's Advances then outstanding constitutes of the
         aggregate principal amount of the Advances then outstanding).

                  "Company" has the meaning assigned to such term in the
         preamble hereof.

                  "Contingent Guaranty" has the meaning assigned to such term in
         the definition of the term "Guaranty" contained in this Section 1.1.

                  "Convert", "Conversion" and "Converted" each refers to a
         conversion of Advances of one Type into Advances of another Type
         pursuant to Section 2.13, 2.14 or 2.18.

                  "Current Reimbursement Obligations" means, with respect to any
         Person, non-contingent obligations of such Person to reimburse a bank
         or other Person in respect of

                                       5
<PAGE>   10

         amounts paid under a letter of credit or similar instrument that are
         paid on or prior to the fifth Business Day after the due date therefor.

                  "Debt" means, as to any Person, all Indebtedness of such
         Person other than (a) any Project Financing of such Person, (b) in the
         case of the Company or a Subsidiary, any liabilities of the Company or
         such Subsidiary, as the case may be, under any Alternate Program, or
         any document executed by the Company or such Subsidiary, as the case
         may be, in connection therewith, (c) any obligations of the Company or
         a Subsidiary with respect to lease payments for the headquarters
         building of the Company located in Houston, Texas and (d) Current
         Reimbursement Obligations of such Person; provided, however, that for
         purposes of Article V, "Debt" shall not include up to an aggregate
         amount (determined without duplication of amount) of $200,000,000 of
         (i) the amount of optional payments in lieu of asset repurchase or
         other payments to similar effect, including extension or renewal
         payments, on off balance sheet leases and (ii) the amount of the
         purchase price for optional acquisition of such asset (in either case,
         calculated at the lower amount payable in respect of such asset under
         clause (i) or (ii) above).

                  "Default" means any event that would constitute an Event of
         Default but for the requirement that notice be given or time elapse or
         both.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States of America.

                  "Effective Date" has the meaning assigned to such term in
         Section 3.1.

                  "Effective Federal Funds Rate" means, for any day, the
         weighted average of the rates on overnight Federal funds transactions
         with members of the Federal Reserve System arranged by Federal funds
         brokers, as published for such day (or, if such day is not a Business
         Day, for the next preceding Business Day) by the Federal Reserve Bank
         of New York, or, if such rate is not so published for any day which is
         a Business Day, the average of the quotations for such day on such
         transactions received by the Administrative Agent from three Federal
         funds brokers of recognized standing selected by it.

                  "Eligible Assignee" means, with respect to any particular
         assignment under Section 9.7, any bank or other financial institution
         approved in writing by the Company expressly with respect to such
         assignment and, except as to such an assignment by Chase so long as
         Chase is the Administrative Agent hereunder, the Administrative Agent
         as an Eligible Assignee for purposes of this Agreement, provided that
         (i) neither the Administrative Agent's nor the Company's approval shall
         be unreasonably withheld and (ii) neither the Administrative Agent's
         nor the Company's approval shall be required if the assignee is another
         Lender or an Affiliate of the assigning Lender.

                  "EPNGC" has the meaning assigned to such term in the preamble
         hereof.

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<PAGE>   11

                  "EPTPC" means El Paso Tennessee Pipeline Co., a Delaware
         corporation.

                  "EPTPC Facility" means the $3,000,000,000 Revolving Credit and
         Competitive Advance Facility Agreement, dated as of November 4, 1996,
         among EPTPC, the several financial institutions from time to time
         parties thereto, and The Chase Manhattan Bank, as administrative agent
         and CAF advance agent thereunder, as the same may be amended, modified
         or supplemented from time to time.

                  "Equity Interests" means any capital stock, partnership, joint
         venture, member or limited liability or unlimited liability company
         interest, beneficial interest in a trust or similar entity or other
         equity interest or investment of whatever nature.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended from time to time, and the regulations promulgated and
         rulings issued from time to time thereunder.

                  "ERISA Affiliate" means any Person who is a member of the
         Company's controlled group within the meaning of Section 4001(a)(14)(A)
         of ERISA.

                  "Eurocurrency Liabilities" has the meaning assigned to that
         term in Regulation D of the Board of Governors of the Federal Reserve
         System, as in effect from time to time.

                  "Eurodollar Rate" means, for any Interest Period for each
         Eurodollar Rate Advance comprising part of the same Borrowing, an
         interest rate per annum equal to the rate which appears on Page 3750 of
         the Telerate Service (or on any successor or substitute page of such
         service, or any successor to or substitute for such service providing
         rate quotations comparable to those currently provided on such page of
         such service, as determined by the Administrative Agent from time to
         time for purposes of providing quotations of interest rates applicable
         to Dollar deposits in the London interbank market) as at approximately
         11:00 A.M. (London, England time) two Business Days before the first
         day of such Interest Period as the rate for Dollar deposits with a
         maturity comparable to such Interest Period; provided that if such rate
         is not available at such time for any reason, the Eurodollar Rate for
         such Borrowing for such Interest Period shall be the interest rate per
         annum equal to the average (rounded upward to the nearest whole
         multiple of 1/16 of 1% per annum, if such average is not such a
         multiple) of the rate per annum at which deposits in Dollars are
         offered by the principal office of each of the Reference Lenders in
         London, England, to prime banks in the London interbank market as at
         approximately 11:00 A.M. (London, England time) two Business Days
         before the first day of such Interest Period, in an approximate amount
         of each such Reference Lender's share of the relevant Borrowing for the
         applicable Interest Period. The Eurodollar Rate for the Interest Period
         for each Eurodollar Rate Advance comprising part of the same Borrowing,
         when being determined pursuant to the foregoing proviso clause, shall
         be determined by the Administrative Agent on the basis of applicable
         rates furnished to and received by the Administrative Agent from the
         Reference Lenders two Business

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<PAGE>   12

         Days before the first day of such Interest Period, subject, however, to
         the provisions of Section 2.13.

                  "Eurodollar Rate Advance" means an Advance which bears
         interest determined by reference to the Eurodollar Rate, as provided in
         Section 2.11(a)(ii).

                  "Eurodollar Reserve Percentage" for any Lender for any
         Interest Period for any Eurodollar Rate Advance means the reserve
         percentage applicable during such Interest Period under regulations
         issued from time to time by the Board of Governors of the Federal
         Reserve System (or if more than one such percentage shall be so
         applicable, the daily average of such percentages for those days in
         such Interest Period during which any such percentage shall be so
         applicable) for determining the maximum reserve requirement (including,
         but not limited to, any emergency, supplemental or other marginal
         reserve requirement) for such Lender with respect to liabilities or
         assets consisting of or including Eurocurrency Liabilities having a
         term equal to such Interest Period.

                  "Events of Default" has the meaning assigned to such term in
         Section 7.1.

                  "Excluded Acquisition Debt" means (a) Debt, Guaranties or
         reimbursement obligations of any Business Entity acquired by the
         Company or any of its Subsidiaries and which Debt, Guaranties or
         reimbursement obligations exist immediately prior to such acquisition
         (provided that (i) such Debt, Guaranties or reimbursement obligations
         are not incurred solely in anticipation of such acquisition and (ii)
         immediately prior to such acquisition such Business Entity is not a
         Subsidiary of the Company), (b) Debt, Guaranties or reimbursement
         obligations of EPTPC and its Subsidiaries in existence on the date of
         the merger of El Paso Tennessee Pipeline Company with El Paso Merger
         Company or (c) Debt, Guaranties or reimbursement obligations in respect
         of any asset acquired by the Company or any of its Subsidiaries and
         which Debt, Guaranties or reimbursement obligations exists immediately
         prior to such acquisition (provided that (i) such Debt, Guaranties or
         reimbursement obligations are not incurred solely in anticipation of
         such acquisition and (ii) immediately prior to such acquisition such
         asset is not an asset of the Company or any of its Subsidiaries).

                  "Existing 364-Day Facility" means the $1,250,000,000 364-Day
         Revolving Credit and Competitive Advance Facility Agreement dated as of
         August 16, 1999, as the same has been or may be amended, supplemented
         or otherwise modified prior to the Closing Date, among the Company,
         EPNGC, Tennessee the several financial institutions from time to time
         parties thereto, Chase, as Administrative Agent and CAF Advance Agent,
         Citibank, N.A. and ABN Amro Bank, N.V., as Co-Documentation Agents and
         Bank of America, N.A., as Syndication Agent, as the same has been and
         may be amended, supplemented and modified from time to time.

                  "Existing 5-Year Facility" means the $750,000,000 5-Year
         Revolving Credit and Competitive Advance Facility Agreement, dated as
         of October 29, 1997, among the Company, EPNGC, Tennessee, the banks and
         other lenders parties thereto, Chase as

                                       8
<PAGE>   13

         Administrative Agent and CAF Advance Agent, Citibank, N.A., as
         Documentation Agent and Morgan Guaranty Trust Company of New York, as
         Syndication Agent, as the same has been and may be amended,
         supplemented and modified from time to time.

                  "Exposure" means (a) with respect to an Objecting Lender at
         any time, the aggregate outstanding principal amount of its Revolving
         Credit Advances and (b) with respect to any other Lender at any time,
         the maximum amount of the Commitment of such Lender.

                  "Extension Request" means each request by the Borrowers made
         pursuant to Section 2.23 for the Lenders to extend the Stated
         Termination Date, which shall contain the information in respect of
         such extension specified in Exhibit M and shall be delivered to the
         Administrative Agent in writing.

                  "Facility Fee Commencement Date" means the date hereof.

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

                  "Fixed Rate CAF Advance" means any CAF Advance made pursuant
         to a Fixed Rate CAF Advance Request.

                  "Fixed Rate CAF Advance Request" means any CAF Advance Request
         requesting the CAF Advance Lenders to offer to make CAF Advances at a
         fixed rate (as opposed to a rate composed of the Applicable LIBO Rate
         plus (or minus) a margin).

                  "GAAP" means generally accepted accounting principles in the
         United States of America, as in effect from time to time.

                  "Guaranty", "Guaranteed" and "Guaranteeing" each means any act
         by which any Person assumes, guarantees, endorses or otherwise incurs
         direct or contingent liability in connection with, or agrees to
         purchase or otherwise acquire or otherwise assures a creditor against
         loss in respect of, any Debt or Project Financing of any Person other
         than the Company or any of its consolidated Subsidiaries (excluding (a)
         any liability by endorsement of negotiable instruments for deposit or
         collection or similar transactions in the ordinary course of business,
         (b) any liability in connection with obligations of the Company, any of
         its consolidated Subsidiaries, including obligations under any
         conditional sales agreement, equipment trust financing or equipment
         lease, and (c) any such act in connection with a Project Financing that
         either (i) guarantees to the provider of such Project Financing or any
         other Person performance of the acquisition, improvement, installation,
         design, engineering, construction, development, completion, maintenance
         or operation of, or otherwise affects any such act in respect of, all
         or any portion of the project that is financed by such Project
         Financing or performance by a Project Financing Subsidiary of certain
         obligations to Persons other than the provider of such Project
         Financing, except during any period, and then only to the extent, that
         such

                                       9
<PAGE>   14

         guaranty is a guaranty of payment of such Project Financing (other than
         a guaranty of payment of the type referred to in subclause (ii) below)
         or (ii) is contingent upon, or the obligation to pay or perform under
         which is contingent upon, the occurrence of any event other than or in
         addition to the passage of time or any Project Financing becoming due
         (any such act referred to in this clause (c) being a "Contingent
         Guaranty"); provided, however, that for purposes of this definition the
         liability of the Company or any of its Subsidiaries with respect to any
         obligation as to which a third party or parties are jointly, or jointly
         and severally, liable as a guarantor or otherwise as contemplated
         hereby and have not defaulted on its or their portions thereof, shall
         be only its pro rata portion of such obligation.

                  "Indebtedness" of any Person means, without duplication (a)
         indebtedness of such Person for borrowed money, (b) obligations of such
         Person (other than any portion of any trade payable obligation of such
         Person which shall not have remained unpaid for 91 days or more from
         the original due date of such portion) to pay the deferred purchase
         price of property or services, and (c) obligations of such Person as
         lessee under leases which shall have been or should be, in accordance
         with GAAP recorded as capital leases, except that where such
         indebtedness or obligation of such Person is made jointly, or jointly
         and severally, with any third party or parties other than any
         consolidated Subsidiary of such Person, the amount thereof for the
         purposes of this definition only shall be the pro rata portion thereof
         payable by such Person, so long as such third party or parties have not
         defaulted on its or their joint and several portions thereof.

                  "Indemnified Party" means any or all of the Lenders, the
         Administrative Agent and the CAF Advance Agent.

                  "Interest Period" means, for each Eurodollar Rate Advance
         comprising part of the same Borrowing, the period beginning on the date
         of such Advance or the date of the Conversion of any Advance into such
         an Advance and ending on the last day of the period selected by the
         applicable Borrower pursuant to the provisions below and, thereafter,
         each subsequent period commencing on the last day of the immediately
         preceding Interest Period and ending on the last day of the period
         selected by the applicable Borrower pursuant to the provisions below.
         The duration of each such Interest Period shall be one, two, three or
         six months, or, subject to availability to each Lender, nine or twelve
         months, in each case as the applicable Borrower may, upon notice
         received by the Administrative Agent not later than 12:00 noon (New
         York City time) on the third Business Day prior to the first day of
         such Interest Period with respect to Eurodollar Rate Advances, select;
         provided, however, that:

                           (a) the duration of any Interest Period which
                  commences before the second anniversary of the Termination
                  Date and would otherwise end after the second anniversary of
                  the Termination Date shall end on the second anniversary of
                  the Termination Date;

                                       10
<PAGE>   15

                           (b) if the last day of such Interest Period would
                  otherwise occur on a day which is not a Business Day, such
                  last day shall be extended to the next succeeding Business
                  Day, except if such extension would cause such last day to
                  occur in a new calendar month, then such last day shall occur
                  on the next preceding Business Day;

                           (c) Interest Periods commencing on the same date for
                  Advances comprising the same Borrowing shall be of the same
                  duration;

                           (d) with respect to Advances made by an Objecting
                  Lender, no Interest Period with respect to such Advances shall
                  end after the second anniversary of such Objecting Lender's
                  Commitment Expiration Date; and

                           (e) any Interest Period which 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, subject to clause (a)
                  above, end on the last Business Day of a calendar month.

                  "Joinder Agreement" means a Joinder Agreement, substantially
         in the form of Exhibit J hereto, duly executed and delivered by the
         Company and the Borrowing Subsidiary party thereto.

                  "Lenders" has the meaning assigned to such term in the
         preamble hereof.

                  "LIBO Rate CAF Advance" means any CAF Advance made pursuant to
         a LIBO Rate CAF Advance Request.

                  "LIBO Rate CAF Advance Request" means any CAF Advance Request
         requesting the CAF Advance Lenders to offer to make CAF Advances at an
         interest rate equal to the Applicable LIBO Rate plus (or minus) a
         margin.

                  "Lien" means any lien, security interest or other charge or
         encumbrance, or any assignment of the right to receive income, or any
         other type of preferential arrangement, in each case to secure any
         Indebtedness or any Guaranty of any Person.

                  "Majority Lenders" means Lenders the Commitment Percentages of
         which aggregate at least 51%, provided, that at any time after the
         Commitment Expiration Date with respect to any Objecting Lender (but
         prior to the termination of all the Commitments), "Majority Lenders"
         shall mean Lenders whose Exposure aggregates at least 51% of the
         aggregate Exposure of all the Lenders.

                  "Margin Stock" means "margin stock" as defined in Regulation U
         of the Board of Governors of the Federal Reserve System, as in effect
         from time to time.

                                       11
<PAGE>   16

                  "Material Adverse Effect" means a material adverse effect on
         the financial condition or operations of the Company and its
         consolidated Subsidiaries on a consolidated basis.

                  "Material Subsidiary" means any Subsidiary of the Company
         (other than a Project Financing Subsidiary) that itself (on an
         unconsolidated, stand-alone basis) owns in excess of 10% of the book
         value of the consolidated assets of the Company and its consolidated
         Subsidiaries.

                  "Mojave" means Mojave Pipeline Company.

                  "Moody's Bond Rating", with respect to any Borrower, means for
         any day the Bond Rating of such Borrower, if any, established by
         Moody's Investors Service, Inc. as in effect at 11:00 A.M., New York
         City time, on such day.

                  "Multiemployer Plan" means a "multiemployer plan" as defined
         in Section 4001(a)(3) of ERISA to which the Company or any ERISA
         Affiliate is making or accruing an obligation to make contributions, or
         has within any of the preceding five plan years made or accrued an
         obligation to make contributions and in respect of which the Company or
         an ERISA Affiliate has any liability (contingent or otherwise), such
         plan being maintained pursuant to one or more collective bargaining
         agreements.

                  "Multiple Employer Plan" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, which (a) is maintained for
         employees of the Company or an ERISA Affiliate and at least one Person
         other than the Company and its ERISA Affiliates or (b) was so
         maintained and in respect of which the Company or an ERISA Affiliate
         could have liability under Section 4064 or 4069 of ERISA in the event
         such plan has been or were to be terminated.

                  "Net Worth" means, as of any date of determination, the sum of
         the preferred stock and stockholders' equity of the Company as shown on
         the most recent consolidated balance sheet of the Company delivered
         pursuant to Section 5.3 plus the cumulative amount by which
         stockholders" equity of the Company shall have been reduced by reason
         of non-cash write-downs of long term assets from and after the
         Effective Date.

                  "Note" has the meaning assigned to such term in Section
         2.3(d).

                  "Notice of Borrowing" has the meaning specified in Section
         2.2(a).

                  "Obligations" means the collective reference to the unpaid
         principal of and interest on the Advances and the Notes and all other
         financial liabilities of the Borrowers to the Administrative Agent, the
         CAF Advance Agent and the Lenders (including interest accruing at the
         then applicable rate provided in this Agreement after the maturity of
         the Advances and interest accruing at the then applicable rate provided
         in this Agreement after the filing of any petition in bankruptcy, or
         the commencement of any insolvency,

                                       12
<PAGE>   17

         reorganization or like proceeding, relating to any Borrower whether or
         not a claim for post-filing or post-petition interest is allowed in
         such proceeding), whether direct or indirect, absolute or contingent,
         due or to become due, or now existing or hereafter incurred, which may
         arise under, out of, or in connection with, this Agreement or the
         Notes, in each case whether on account of principal, interest,
         reimbursement obligations, fees, indemnities, costs, expenses or
         otherwise (including all fees and disbursements of counsel to the
         Administrative Agent, the CAF Advance Agent or to the Lenders that are
         required to be paid by any Borrower pursuant to this Agreement).

                  "Objecting Lenders" has the meaning assigned to such term in
         Section 2.23(a).

                  "Other Taxes" has the meaning assigned to such term in Section
         2.20(b).

                  "Party" has the meaning assigned to such term in Section 9.8.

                  "PBGC" means the Pension Benefit Guaranty Corporation (or any
         successor).

                  "Permitted Claims" has the meaning assigned to such term in
         Section 9.9(a).

                  "Permitted Liens" means:

                  (i) inchoate Liens and charges imposed by law and incidental
         to construction, maintenance, development or operation of properties,
         or the operation of business, in the ordinary course of business if
         payment of the obligation secured thereby is not yet overdue or if the
         validity or amount of which is being contested in good faith by the
         Company or any of its Subsidiaries;

                  (ii) Liens for taxes, assessments, obligations under workers"
         compensation or other social security legislation or other governmental
         requirements, charges or levies, in each case not yet overdue;

                  (iii) Liens reserved in any oil, gas or other mineral lease
         entered into in the ordinary course of business for rent, royalty or
         delay rental under such lease and for compliance with the terms of such
         lease;

                  (iv) easements, servitudes, rights-of-way and other rights,
         exceptions, reservations, conditions, limitations, covenants and other
         restrictions that do not materially interfere with the operation, value
         or use of the properties affected thereby;

                  (v) conventional provisions contained in any contracts or
         agreements affecting properties under which the Company or any of its
         Subsidiaries is required immediately before the expiration, termination
         or abandonment of a particular property to reassign to such Person"s
         predecessor in title all or a portion of such Person"s rights, titles
         and interests in and to all or portion of the such property;

                                       13
<PAGE>   18

                  (vi) any Lien reserved in a grant or conveyance in the nature
         of a farm-out or conditional assignment to the Company or any of its
         Subsidiaries entered into in the ordinary course of business on
         reasonable terms to secure undertakings of the Company or any such
         Subsidiary in such grant or conveyance;

                  (vii) any Lien consisting of (A) statutory landlord"s liens
         under leases to which the Company or any of its Subsidiaries is a party
         or other Liens on leased property reserved in leases thereof for rent
         or for compliance with the terms of such leases, (B) rights reserved to
         or vested in any municipality or governmental, statutory or public
         authority to control or regulate any property of the Company or any of
         its Subsidiaries, or to use such property in any manner which does not
         materially impair the use of such property for the purposes for which
         it is held by the Company or any such Subsidiary, (C) obligations or
         duties to any municipality or public authority with respect to any
         franchise, grant, license, lease or permit and the rights reserved or
         vested in any governmental authority or public utility to terminate any
         such franchise, grant, license, lease or permit or to condemn or
         expropriate any property, and (D) zoning laws and ordinances and
         municipal regulations;

                  (viii) any Lien on any assets (including Equity Interests and
         other obligations) securing Indebtedness or other obligations incurred
         or assumed for the purpose of financing all or any part of the cost of
         acquiring, improving, installing, designing, engineering, developing
         (including drilling), or constructing such assets, provided that such
         Lien attaches to such assets concurrently with or within 365 days after
         the acquisition or completion of development, construction or
         installation thereof or improvement thereto; and

                  (ix) the creation of interests in property of the character
         commonly referred to as a "royalty interest" or "overriding royalty
         interest", production payments, farmouts, leases, subleases, rights of
         way and other easements, participations, joint venture, joint
         operating, unitization, pooling and communitization agreements, or
         other similar transactions in the ordinary course of business.

                  "Person" means an individual, a Business Entity, or a country
         or any political subdivision thereof or any agency or instrumentality
         of such country or subdivision.

                  "Plan" means a Single Employer Plan or a Multiple Employer
         Plan.

                  "Prime Rate" means the rate of interest per annum publicly
         announced from time to time by Chase as its prime rate in effect at its
         principal office in New York City. The Prime Rate is not intended to be
         the lowest rate of interest charged by Chase in connection with
         extensions of credit to debtors.

                  "Principal Subsidiary" means, at any time, any Subsidiary of
         the Company (other than a Project Financing Subsidiary) either (a)
         having assets that are, or owning Subsidiaries with assets that
         together with its assets are, at such time greater than or equal

                                       14
<PAGE>   19

         to 5% of the consolidated assets of the Company and its consolidated
         Subsidiaries at such time or (b) constituting a Borrowing Subsidiary.

                  "Process Agent" has the meaning specified in Section 9.9(a).

                  "Project Financing" means any Indebtedness incurred to finance
         or refinance the acquisition, improvement, installation, design,
         engineering, construction, development, completion, maintenance or
         operation of, or otherwise in respect of, all or any portion of any
         project, or any asset related thereto, and any Guaranty with respect
         thereto, other than any portion of such Indebtedness or Guaranty
         permitting or providing for recourse against the Company or any of its
         Subsidiaries other than (a) recourse to the Equity Interests in,
         Indebtedness or other obligations of, or assets of, one or more Project
         Financing Subsidiaries, and (b) such recourse as exists under any
         Contingent Guaranty.

                  "Project Financing Subsidiary" means any Subsidiary of the
         Company whose principal purpose is to incur Project Financing, or to
         become a direct or indirect partner, member or other equity participant
         or owner in a Business Entity so created, and substantially all the
         assets of which Subsidiary or Business Entity are limited to those
         assets being financed (or to be financed), or the operation of which is
         being financed (or to be financed), in whole or in part by a Project
         Financing or to Equity Interests in, or Indebtedness or other
         obligations of, one or more other such Subsidiaries or Business
         Entities or to Indebtedness or other obligations of the Company or its
         Subsidiaries or other Persons.

                  "Rating Agency" means any of Moody"s Investors Service, Inc.
         and Standard & Poor"s Ratings Group; collectively the "Rating
         Agencies".

                  "Receivables Purchase and Sale Agreement" means the collective
         reference to (a) the Receivables Purchase and Sale Agreement dated as
         of January 14, 1992 among EPNGC, CIESCO L.P., a New York limited
         partnership, Corporate Asset Funding Company, a Delaware corporation
         and Citicorp North America, Inc., as agent, as amended as of the date
         hereof, and (b) the Amended and Restated Receivables Sale Agreement
         dated as of December 31, 1996 among El Paso Energy Credit Corporation,
         Asset Securitization Cooperative Corporation and Canadian Imperial Bank
         of Commerce, as administrative agent, as such Agreement may be amended,
         supplemented, restated or otherwise modified from time to time,
         provided that no such amendment, supplement, restatement or
         modification shall change the scope of such Agreement from that of a
         receivables securitization transaction.

                  "Reference Lenders" means Chase, Bank of America, N.A.,
         Citibank, N.A. and ABN Amro Bank, N.V..

                  "Register" has the meaning specified in Section 9.7(c).

                                       15
<PAGE>   20

                  "Required Lenders" means Lenders (a) that are not Objecting
         Lenders with respect to any previous Extension Request and (b) that
         have Commitment Percentages aggregating at least 66-2/3% of the
         aggregate Commitment Percentages of such non-Objecting Lenders.

                  "Revolving Credit Advances" has the meaning assigned to such
         term in Section 2.1.

                  "S&P Bond Rating", with respect to any Borrower, means for any
         day the Bond Rating of such Borrower, if any, established by Standard &
         Poor's Ratings Group as in effect at 11:00 A.M., New York City time, on
         such day.

                  "Single Employer Plan" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
         employees of the Company or an ERISA Affiliate and no Person other than
         the Company and its ERISA Affiliates or (b) was so maintained and in
         respect of which the Company or an ERISA Affiliate could have liability
         under Section 4069 of ERISA in the event such plan has been or were to
         be terminated.

                  "Sonat Agreement" means the Credit Agreement dated as of April
         15, 1999 among Sonat Inc., the banks party thereto, Chase, as
         Administrative Agent thereunder, Bank of America National Trust and
         Savings Association, as Syndication Agent thereunder and Suntrust Bank,
         Atlanta, as Documentation Agent thereunder, as amended, supplemented or
         otherwise modified from time to time.

                  "Stated Termination Date" means August 3, 2001 or such later
         date as shall be determined pursuant to the provisions of Section 2.23
         with respect to non-Objecting Lenders.

                  "Subsidiary" means, as to any Person, any Business Entity of
         which shares of stock or other Equity Interests having ordinary voting
         power (other than stock or such other Equity Interests having such
         power only by reason of the happening of a contingency) to elect a
         majority of the board of directors or other managers of such Business
         Entity are at the time owned, directly or indirectly through one or
         more Subsidiaries, or both, by such Person. Unless otherwise qualified,
         all references to a "Subsidiary" or to "Subsidiaries" in this Agreement
         shall refer to a Subsidiary or Subsidiaries of the Company.

                  "Syndication Agent" has the meaning assigned to such term in
         the preamble hereof.

                  "Taxes" has the meaning assigned to such term in Section
         2.20(a).

                  "Tennessee" has the meaning assigned to such term in the
         preamble hereof, and its successors.

                                       16
<PAGE>   21

                  "Termination Date" means the earlier of (a) the Stated
         Termination Date and (b) the date of termination in whole of the
         Commitments pursuant to Section 2.9 or 7.1.

                  "Termination Event" means (a) a "reportable event," as such
         term is described in Section 4043 of ERISA (other than a "reportable
         event" not subject to the provision for 30-day notice to the PBGC under
         subsection .11, .12, .13, .14, .16, .18, .19 or .20 of PBGC Reg.
         Section 2615), or an event described in Section 4062(e) of ERISA, or
         (b) the withdrawal of the Company or any ERISA Affiliate from a
         Multiple Employer Plan during a plan year in which it was a
         "substantial employer," as such term is defined in Section 4001(a)(2)
         of ERISA or the incurrence of liability by the Company or any ERISA
         Affiliate under Section 4064 of ERISA upon the termination of a
         Multiple Employer Plan, or (c) the filing of a notice of intent to
         terminate a Plan or the treatment of a Plan amendment as a termination
         under Section 4041 of ERISA, or (d) the institution of proceedings to
         terminate a Plan by the PBGC under Section 4042 of ERISA, or (e) the
         conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
         creation of a lien upon property or rights to property of the Company
         or any ERISA Affiliate for failure to make a required payment to a Plan
         are satisfied, or (f) the adoption of an amendment to a Plan requiring
         the provision of security to such Plan, pursuant to Section 307 of
         ERISA, or (g) the occurrence of any other event or the existence of any
         other condition which would reasonably be expected to result in the
         termination of, or the appointment of a trustee to administer, any Plan
         under Section 4042 of ERISA.

                  "3-Year Facility" means the 3-Year Revolving Credit and
         Competitive Advance Facility Agreement, dated as of August 4, 2000,
         among the Company, EPNGC, Tennessee, the banks and other lenders
         parties thereto, Chase, as Administrative Agent and CAF Advance Agent,
         Citibank, N.A. and ABN Amro Bank, N.V., as Co-Documentation Agent and
         Bank of America, N.A., as Syndication Agent, as the same has been and
         may be amended, supplemented and modified from time to time.

                  "Type" means (a) as to any Revolving Credit Advance, its
         nature as a Base Rate Advance or a Eurodollar Rate Advance and (b) as
         to any CAF Advance, its nature as a Fixed Rate CAF Advance or a LIBO
         Rate CAF Advance.

                  "Withdrawal Liability" has the meaning given such term under
         Part 1 of Subtitle E of Title IV of ERISA.

                  SECTION I.2 Computation of Time Periods. Unless otherwise
stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date, the word "from" means "from and
including" and the words "to" and "until" each means "to but excluding."

                  SECTION I.3 Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with GAAP either
(a) consistent with those principles applied in the preparation of the financial
statements referred to in Section 4.1(e) or (b) not so

                                       17
<PAGE>   22

materially inconsistent with such principles that a covenant contained in
Section 5.1 or 5.2 would be calculated or construed in a materially different
manner or with materially different results than if such covenant were
calculated or construed in accordance with clause (a) of this Section 1.3.
"Include", "includes" and "including" shall be deemed to be followed by "without
limitation" whether or not they are in fact followed by such words or words of
like import. References to any agreement or contract are to such agreement or
contract as amended, modified or supplemented from time to time in accordance
with the terms hereof and thereof.

                  SECTION I.4 References. The words "hereof", "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Article, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

                  SECTION II.1 The Revolving Credit Advances. Each Lender
severally agrees, on the terms and conditions hereinafter set forth, to make
revolving credit advances ("Revolving Credit Advances") to the Borrowers or any
one or more of them from time to time on any Business Day during the period from
the date hereof to and including the Termination Date in an aggregate amount not
to exceed at any time outstanding the amount of such Lender's Commitment;
provided that the aggregate amount of the Advances (other than Advances of
Objecting Lenders) outstanding shall not at any time exceed the aggregate amount
of the Commitments. Each Borrowing shall be in an aggregate amount of $5,000,000
in the case of a Borrowing comprised of Base Rate Advances and $20,000,000 in
the case of a Borrowing comprised of Eurodollar Rate Advances, or, in each case,
an integral multiple of $1,000,000 in excess thereof (or, in the case of a
Borrowing of Base Rate Advances, the aggregate unused Commitments, if less) and
shall consist of Revolving Credit Advances of the same Type made on the same day
by the Lenders ratably according to their respective Commitments. Within the
limits of each Lender's Commitment, any Borrower may make more than one
Borrowing on any Business Day and may borrow, repay pursuant to Section 2.10 or
prepay pursuant to Section 2.15, and reborrow under this Section 2.1.

                  SECTION II.2 Making the Revolving Credit Advances. (a) Each
Borrowing of Revolving Credit Advances shall be made on notice by the Company on
its own behalf or the Company on behalf of another Borrower, to the
Administrative Agent (a "Notice of Borrowing") received by the Administrative
Agent, (i) in the case of a proposed Borrowing comprised of Base Rate Advances,
not later than 10:00 A.M. (New York City time) on the Business Day of such
proposed Borrowing and (ii) in the case of a proposed Borrowing comprised of
Eurodollar Rate Advances, not later than 12:00 noon (New York City time) on the
third Business Day prior to the date of such proposed Borrowing. Each Notice of
Borrowing shall be by telecopy or telephone (and if by telephone, confirmed
promptly by telecopier), in substantially the form of Exhibit B, specifying
therein the requested (A) Borrower, (B) date of such Borrowing, (C) Type of
Revolving Credit Advances comprising such Borrowing, (D) aggregate amount of
such

                                       18
<PAGE>   23

Borrowing, and (E) in the case of a Borrowing comprised of Eurodollar Rate
Advances, the initial Interest Period for each such Advance. Each Lender shall,
before 1:00 P.M. (New York City time) on the date of such Borrowing, make
available to the Administrative Agent at its address at 270 Park Avenue, New
York, New York, 10017, Reference: El Paso Energy Corporation, or at such other
address designated by notice from the Administrative Agent to the Lenders
pursuant to Section 9.2, in same day funds, such Lender's ratable portion of
such Borrowing. Immediately after the Administrative Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article
III, the Administrative Agent will make such funds available to the applicable
Borrower at Chase, 270 Park Avenue, New York, New York, 10017, Account No.
323291503, Reference: El Paso Energy Corporation, or at such other account of
the applicable Borrower maintained by the Administrative Agent (or any successor
Administrative Agent) designated by the applicable Borrower and agreed to by the
Administrative Agent (or such successor Administrative Agent), in same day
funds.

                  (b) Each Notice of Borrowing shall be irrevocable and binding
on the applicable Borrower. In the case of any Borrowing which the related
Notice of Borrowing specified is to be comprised of Eurodollar Rate Advances, if
such Advances are not made as a result of any failure to fulfill on or before
the date specified for such Borrowing the applicable conditions set forth in
Article III, the applicable Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of such failure,
including, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Advance to be made by such Lender as part of such Borrowing.

                  (c) Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.2 and the Administrative Agent
may, in reliance upon such assumption, make available to the applicable Borrower
on such date a corresponding amount. If and to the extent such Lender shall not
have so made such ratable portion available to the Administrative Agent, such
Lender and the applicable Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to
the applicable Borrower until the date such amount is repaid to the
Administrative Agent, at the Effective Federal Funds Rate for such day. If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender's Advance to the applicable
Borrower as part of such Borrowing for purposes of this Agreement.

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

                                       19
<PAGE>   24

                  SECTION II.3 Evidence of Debt. (a) Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing
indebtedness of each Borrower to such Lender resulting from each Revolving
Credit Advance of such Lender to such Borrower from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time in respect of such Revolving Credit Advance.

                  (b) The Administrative Agent shall maintain the Register
pursuant to Section 9.7(c), and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Revolving Credit Advance made
hereunder, the Type thereof and each Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and
payable from each Borrower on account of such Revolving Credit Advance to each
Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from each Borrower and each Lender's share
thereof.

                  (c) The entries made in the Register and the accounts of each
Lender maintained pursuant to Section 2.3(a) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the
obligation of each Borrower to repay (with applicable interest) the Revolving
Credit Advances made to each such Borrower by such Lender in accordance with the
terms of this Agreement.

                  (d) Each Borrower agrees that, upon the request to the
Administrative Agent by any Lender, such Borrower will execute and deliver to
such Lender a promissory note of such Borrower evidencing the Revolving Credit
Advances of such Lender to such Borrower, substantially in the form of Exhibit A
with appropriate insertions as to date and principal amount (a "Note").

                  SECTION II.4 CAF Advances. Subject to the terms and conditions
of this Agreement, the Borrowers or any one or more of them may borrow CAF
Advances from time to time during the CAF Advance Availability Period on any
Business Day. The Company shall, in consultation with the CAF Advance Agent,
designate Lenders from time to time as CAF Advance Lenders by written notice to
the CAF Advance Agent. The CAF Advance Agent shall transmit each such notice of
designation promptly to each designated CAF Advance Lender. CAF Advances shall
be borrowed in amounts such that the aggregate amount of Advances outstanding at
any time shall not exceed the aggregate amount of the Commitments at such time.
Any CAF Advance Lender may make CAF Advances in amounts which, individually and
together with the aggregate amount of other Advances of such CAF Advance Lender,
exceed such CAF Advance Lender's Commitment, and such CAF Advance Lender's CAF
Advances shall not be deemed to utilize such CAF Advance Lender's Commitment.
Within the limits and on the conditions hereinafter set forth with respect to
CAF Advances, the Borrowers from time to time may borrow, repay and reborrow CAF
Advances.

                  SECTION II.5 Procedure for CAF Advance Borrowings. (a) A
Borrower, or the Company on behalf of a Borrower, shall request CAF Advances by
delivering a CAF Advance

                                       20
<PAGE>   25

Request to the CAF Advance Agent, not later than 12:00 Noon (New York City time)
four Business Days prior to the date of the proposed Borrowing (in the case of a
LIBO Rate CAF Advance Request), and not later than 10:00 A.M. (New York City
time) one Business Day prior to the date of the proposed Borrowing (in the case
of a Fixed Rate CAF Advance Request). Each CAF Advance Request may solicit bids
for CAF Advances in an aggregate principal amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof and having not more than five
alternative maturity dates. The maturity date for each CAF Advance shall be not
less than 7 days nor more than 360 days after the date of the Borrowing therefor
(and in any event shall be not later than the Stated Termination Date); provided
that each LIBO Rate CAF Advance shall mature one, two, three or six months or,
if available, nine or twelve months after the date of the Borrowing therefor.
The CAF Advance Agent shall notify each CAF Advance Lender promptly by telecopy
of the contents of each CAF Advance Request received by the CAF Advance Agent.

                  (b) In the case of a LIBO Rate CAF Advance Request, upon
receipt of notice from the CAF Advance Agent of the contents of such CAF Advance
Request, each CAF Advance Lender may elect, in its sole discretion, to offer
irrevocably to make one or more CAF Advances at the Applicable LIBO Rate plus
(or minus) a margin determined by such CAF Advance Lender in its sole discretion
for each such CAF Advance. Any such irrevocable offer shall be made by
delivering a CAF Advance Offer to the CAF Advance Agent, before 10:30 A.M. (New
York City time) on the day that is three Business Days before the date of the
proposed Borrowing, setting forth:

                  (i) the maximum amount of CAF Advances for each maturity date
         and the aggregate maximum amount of CAF Advances for all maturity dates
         which such CAF Advance Lender would be willing to make (which amounts
         may, subject to Section 2.4, exceed such CAF Advance Lender's
         Commitment); and

                  (ii) the margin above or below the Applicable LIBO Rate at
         which such CAF Advance Lender is willing to make each such CAF Advance.

The CAF Advance Agent shall advise the Company and the applicable Borrower
before 11:00 A.M. (New York City time) on the date which is three Business Days
before the proposed date of the Borrowing of the contents of each such CAF
Advance Offer received by it. If the CAF Advance Agent, in its capacity as a CAF
Advance Lender, shall elect, in its sole discretion, to make any such CAF
Advance Offer, it shall advise the Company and the applicable Borrower of the
contents of its CAF Advance Offer before 10:15 A.M. (New York City time) on the
date which is three Business Days before the proposed date of the Borrowing.

                  (c) In the case of a Fixed Rate CAF Advance Request, upon
receipt of notice from the CAF Advance Agent of the contents of such CAF Advance
Request, each CAF Advance Lender may elect, in its sole discretion, to offer
irrevocably to make one or more CAF Advances at a rate of interest determined by
such CAF Advance Lender in its sole discretion for each such CAF Advance. Any
such irrevocable offer shall be made by delivering a CAF Advance Offer to the
CAF Advance Agent before 9:30 A.M. (New York City time) on the proposed date of
the Borrowing, setting forth:

                                       21
<PAGE>   26

                  (i) the maximum amount of CAF Advances for each maturity date,
         and the aggregate maximum amount for all maturity dates, which such CAF
         Advance Lender would be willing to make (which amounts may, subject to
         Section 2.4, exceed such CAF Advance Lender's Commitment); and

                  (ii) the rate of interest at which such CAF Advance Lender is
         willing to make each such CAF Advance.

The CAF Advance Agent shall advise the Company and the applicable Borrower
before 10:00 A.M. (New York City time) on the proposed date of the Borrowing of
the contents of each such CAF Advance Offer received by it. If the CAF Advance
Agent, in its capacity as a CAF Advance Lender, shall elect, in its sole
discretion, to make any such CAF Advance Offer, it shall advise the Company and
the applicable Borrower of the contents of its CAF Advance Offer before 9:15
A.M. (New York City time) on the proposed date of the Borrowing.

                  (d) Before 11:30 A.M. (New York City time) three Business Days
before the proposed date of the Borrowing (in the case of CAF Advances requested
by a LIBO Rate CAF Advance Request) and before 10:30 A.M. (New York City time)
on the proposed date of the Borrowing (in the case of CAF Advances requested by
a Fixed Rate CAF Advance Request), the Company, in its absolute discretion,
shall:

                  (i) cancel such CAF Advance Request by giving the CAF Advance
         Agent telephone notice to that effect, or

                  (ii) by giving telephone notice to the CAF Advance Agent
         (immediately confirmed by delivery to the CAF Advance Agent of a CAF
         Advance Confirmation in writing or by telecopy) (A) subject to the
         provisions of Section 2.5(e), accept one or more of the offers made by
         any CAF Advance Lender or CAF Advance Lenders pursuant to Section
         2.5(b) or Section 2.5(c), as the case may be, of the amount of CAF
         Advances for each relevant maturity date and (B) reject any remaining
         offers made by CAF Advance Lenders pursuant to Section 2.5(b) or
         Section 2.5(c), as the case may be.

                  (e) The Company's acceptance of CAF Advances in response to
any CAF Advance Request shall be subject to the following limitations:

                  (i) the amount of CAF Advances accepted for each maturity date
         specified by any CAF Advance Lender in its CAF Advance Offer shall not
         exceed the maximum amount for such maturity date specified in such CAF
         Advance Offer;

                  (ii) the aggregate amount of CAF Advances accepted for all
         maturity dates specified by any CAF Advance Lender in its CAF Advance
         Offer shall not exceed the aggregate maximum amount specified in such
         CAF Advance Offer for all such maturity dates;

                                       22
<PAGE>   27

                  (iii) the Company may not accept offers for CAF Advances for
         any maturity date in an aggregate principal amount in excess of the
         maximum principal amount requested in the related CAF Advance Request;
         and

                  (iv) if the Company accepts any of such offers, it must accept
         offers based solely upon pricing for such relevant maturity date and
         upon no other criteria whatsoever and if two or more CAF Advance
         Lenders submit offers for any maturity date at identical pricing and
         the Company accepts any of such offers but does not wish to (or by
         reason of the limitations set forth in Section 2.4 or in Section
         2.5(e)(iii), cannot) borrow the total amount offered by such CAF
         Advance Lenders with such identical pricing, the Company shall accept
         offers from all of such CAF Advance Lenders in amounts allocated among
         them pro rata according to the amounts offered by such CAF Advance
         Lenders (or as nearly pro rata as shall be practicable after giving
         effect to the requirement that CAF Advances made by a CAF Advance
         Lender on a date of the Borrowing for each relevant maturity date shall
         be in a principal amount of $5,000,000 or an integral multiple of
         $1,000,000 in excess thereof; provided that if the number of CAF
         Advance Lenders that submit offers for any maturity date at identical
         pricing is such that, after the Company accepts such offers pro rata in
         accordance with the foregoing, the CAF Advance to be made by such CAF
         Advance Lenders would be less than $5,000,000 principal amount, the
         number of such CAF Advance Lenders shall be reduced by the CAF Advance
         Agent by lot until the CAF Advances to be made by such remaining CAF
         Advance Lenders would be in a principal amount of $5,000,000 or an
         integral multiple of $1,000,000 in excess thereof).

                  (f) If the Company notifies the CAF Advance Agent that a CAF
Advance Request is cancelled pursuant to Section 2.5(d)(i), the CAF Advance
Agent shall give prompt telephone notice thereof to the CAF Advance Lenders.

                  (g) If the Company accepts pursuant to Section 2.5(d)(ii) one
or more of the offers made by any CAF Advance Lender or CAF Advance Lenders, the
CAF Advance Agent promptly shall notify each CAF Advance Lender which has made
such a CAF Advance Offer of (i) the aggregate amount of such CAF Advances to be
made on such Borrowing Date for each maturity date and (ii) the acceptance or
rejection of any offers to make such CAF Advances made by such CAF Advance
Lender. Before 1:00 P.M. (New York City time) on the date of the Borrowing
specified in the applicable CAF Advance Request, each CAF Advance Lender whose
CAF Advance Offer has been accepted shall make available to the Administrative
Agent at its office set forth in Section 9.2 the amount of CAF Advances to be
made by such CAF Advance Lender, in same day funds. The Administrative Agent
will make such funds available to the applicable Borrower as soon as practicable
on such date at the Administrative Agent's aforesaid address. As soon as
practicable after each Borrowing Date, the CAF Advance Agent shall notify each
Lender of the aggregate amount of CAF Advances advanced on such Borrowing Date
and the respective maturity dates thereof.

                  (h) The failure of any CAF Advance Lender to make the CAF
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any,

                                       23
<PAGE>   28

hereunder to make its CAF Advance on the date of such Borrowing, but no CAF
Lender shall be responsible for the failure of any other CAF Advance Lender to
make the CAF Advance to be made by such CAF Advance Lender on the date of any
Borrowing.

                  (i) A CAF Advance Request may request offers for CAF Advances
to be made on not more than one Borrowing Date and to mature on not more than
five CAF Advance Maturity Dates. No CAF Advance Request may be submitted earlier
than five Business Days after submission of any other CAF Advance Request.

                  SECTION II.6 CAF Advance Payments. (a) The applicable Borrower
shall repay to the Administrative Agent, for the account of each CAF Advance
Lender which has made a CAF Advance to it, on the applicable CAF Advance
Maturity Date the then unpaid principal amount of such CAF Advance. The
Borrowers shall not have the right to prepay any principal amount of any CAF
Advance.

                  (b) The applicable Borrower shall pay interest on the unpaid
principal amount of each CAF Advance to it from the date of the Borrowing to the
applicable CAF Advance Maturity Date at the rate of interest specified in the
CAF Advance Offer accepted by the applicable Borrower in connection with such
CAF Advance (calculated on the basis of a 360-day year for actual days elapsed),
payable on each applicable CAF Advance Interest Payment Date.

                  (c) If all or a portion of the principal amount of any CAF
Advance shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue principal amount shall, without
limiting any rights of any Lender under this Agreement, bear interest from the
date on which such payment was due at a rate per annum which is 1% above the
rate which would otherwise be applicable pursuant to such CAF Advance until the
stated maturity date of such CAF Advance, and for each day thereafter at a rate
per annum which is 2% above the Base Rate, in each case until paid in full (as
well after as before judgment). Interest accruing pursuant to this paragraph (c)
shall be payable from time to time on demand.

                  SECTION II.7 Evidence of Debt. Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing indebtedness
of each Borrower to such Lender resulting from each CAF Advance of such Lender
to such Borrower from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time in respect of such
CAF Advance. The Administrative Agent shall maintain the Register pursuant to
Section 9.7(c) and a record therein for each Lender, in which shall be recorded
(i) the amount of each CAF Advance made by such Lender to each Borrower, the CAF
Advance Maturity Date thereof, the interest rate applicable thereto and each CAF
Advance Interest Payment Date applicable thereto, and (ii) the amount of any sum
received by the Administrative Agent hereunder from a Borrower on account of
such CAF Advance. The entries made in the Register and the records of each
Lender maintained pursuant to this Section 2.7 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such record, or any error therein,

                                       24
<PAGE>   29

shall not in any manner affect the obligation of each Borrower to repay (with
applicable interest) the CAF Advances made by such Lender in accordance with the
terms of this Agreement.

                  SECTION II.8 Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Lender a facility fee for the
period from and including the Facility Fee Commencement Date until all Advances
have been paid in full and all Commitments have been terminated, computed at a
variable rate per annum on the average daily amount of the greater of (i) the
Commitment of such Lender and (ii) the outstanding principal amount of Revolving
Credit Advances of such Lender during the period for which payment is made,
which rate will vary according to the S&P Bond Rating for the Company and the
Moody's Bond Rating for the Company as follows:

<TABLE>
<CAPTION>
  Bond Rating                     Facility
 (S&P/Moody's)        Level       Fee Rate
----------------      -----       --------
<S>                   <C>          <C>
A/A2 or higher          I          .070%
A-/A3                   II         .080%
BBB+/Baa1               III        .090%
BBB/Baa2                IV         .100%
BBB-/Baa3               V          .150%
BB+/Ba1 or lower        VI         .200%;
</TABLE>

provided that (i) if the Bond Ratings of the Company do not fall within the same
Level, the rate applicable to such day will be the percentage opposite the Bond
Rating that is at the higher Level (Level I being the highest and Level VI being
the lowest), (ii) in the event a Bond Rating for the Company is not available
from one of the Rating Agencies, the rate shall be based on the Bond Rating of
the other Rating Agency, and (iii) in the event a Bond Rating for the Company is
available from none of the Rating Agencies, the rate will be the percentage
opposite Level VI. Such facility fees shall be payable quarterly in arrears on
the last day of each March, June, September and December and on the Termination
Date or such earlier date on which the Commitments shall terminate as provided
herein, and, if the Lender is an Objecting Lender, on the Commitment Expiration
Date applicable to such Lender and on the second anniversary of the Termination
Date (or if the Lender is an Objecting Lender, the second anniversary of the
Commitment Expiration Date applicable to such Lender) or such earlier date on
which the Advances are repaid in full, commencing on the first of such dates to
occur after the date hereof.

                  (b) The Company agrees to pay to Chase Securities Inc., the
Administrative Agent and the CAF Advance Agent the fees set forth in the letter,
dated as of July 5, 2000 from Chase Securities Inc. and Chase to the Company.

                  SECTION II.9 Reduction of the Commitments. The Company shall
have the right, upon at least three Business Days' notice to the Administrative
Agent, to terminate in whole or reduce ratably in part the unused portions of
the respective Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $10,000,000 or any whole multiple of
$1,000,000 in excess thereof.

                                       25
<PAGE>   30

                  SECTION II.10 Repayment of Advances. The Borrowers shall repay
to each Lender on the second anniversary of the Termination Date the aggregate
principal amount of the Advances then owing to such Lender; provided that the
Revolving Credit Advances made by Objecting Lenders shall be repaid as provided
in Section 2.23.

                  SECTION II.11 Interest on Revolving Credit Advances. (a)
Ordinary Interest. Each Borrower shall pay interest on the unpaid principal
amount of each Revolving Credit Advance of such Borrower owing to each Lender
from the date of such Advance until such principal amount is due (whether at
stated maturity, by acceleration or otherwise), at the following rates:

                        (i) Base Rate Advances. During such periods as such
         Advance is a Base Rate Advance, a rate per annum equal at all times to
         the Base Rate in effect from time to time, payable quarterly in arrears
         on the last day of each March, June, September and December during such
         periods and on the date such Base Rate Advance shall be Converted or
         due (whether at stated maturity, by acceleration or otherwise).

                       (ii) Eurodollar Rate Advances. During such periods as
         such Advance is a Eurodollar Rate Advance, at a rate per annum equal at
         all times during each Interest Period for such Advance to the sum of
         the Eurodollar Rate for such Interest Period plus the Applicable
         Eurodollar Rate Margin for such Borrower in effect from time to time,
         payable on the last day of each such Interest Period and, if any such
         Interest Period has a duration of more than three months, on each day
         which occurs during such Interest Period every three months from the
         first day of such Interest Period, and on the date such Advance shall
         be Converted or due (whether at stated maturity, by acceleration or
         otherwise).

                  (b) Default Interest. The applicable Borrower shall pay
interest on the unpaid principal amount of each Revolving Credit Advance to it
that is not paid when due (whether at stated maturity, by acceleration or
otherwise) from the date on which such amount is due until such amount is paid
in full, payable on demand, at a rate per annum equal at all times (i) from such
due date to the last day of the then existing Interest Period in the case of
each Eurodollar Rate Advance, to 1% per annum above the interest rate per annum
required to be paid on such Advance immediately prior to the date on which such
amount became due, and (ii) from and after the last day of the then existing
Interest Period, and at all times in the case of any Base Rate Advance, to 1%
per annum above the Base Rate in effect from time to time.

                  SECTION II.12 Additional Interest on Eurodollar Rate Advances.
If any Lender shall determine in good faith that reserves under regulations of
the Board of Governors of the Federal Reserve System are required to be
maintained by it in respect of, or a portion of its costs of maintaining
reserves under such regulations is properly attributable to, one or more of its
Eurodollar Rate Advances, the applicable Borrower shall pay to such Lender
additional interest on the unpaid principal amount of each such Eurodollar Rate
Advance to it (other than any such additional interest accruing to a particular
Lender in respect of periods prior to the 30th day

                                       26
<PAGE>   31

preceding the date notice of such interest is given by such Lender as provided
in this Section 2.12), payable on the same day or days on which interest is
payable on such Advance, at an interest rate per annum equal at all times during
each Interest Period for such Advance to the excess of (i) the rate obtained by
dividing the Eurodollar Rate for such Interest Period by a percentage equal to
100% minus the Eurodollar Reserve Percentage, if any, for such Lender for such
Interest Period over (ii) the Eurodollar Rate for such Interest Period. The
amount of such additional interest (if any) shall be determined by each Lender,
and such Lender shall furnish written notice of the amount of such additional
interest to the Company and the Administrative Agent, which notice shall be
conclusive and binding for all purposes, absent manifest error.

                  SECTION II.13 Interest Rate Determination. (a) Each Reference
Lender agrees to furnish to the Administrative Agent timely information for the
purpose of determining the Eurodollar Rate. If any one or more of the Reference
Lenders shall not furnish such timely information to the Administrative Agent
for the purpose of determining any such interest rate, the Administrative Agent
shall determine such interest rate on the basis of timely information furnished
by the remaining Reference Lenders.

                  (b) The Administrative Agent shall give prompt notice to the
Company and the Lenders of the applicable interest rate determined by the
Administrative Agent for purposes of Section 2.11(a)(i) or (ii), and the
applicable rate, if any, furnished by each Reference Lender for the purpose of
determining the applicable interest rate under Section 2.11(a)(ii).

                  (c) If fewer than two Reference Lenders furnish timely
information to the Administrative Agent for determining the Eurodollar Rate for
any Eurodollar Rate Advances,

                        (i) the Administrative Agent shall give the Company and
         each Lender prompt notice thereof by telephone (confirmed in writing)
         that the interest rate cannot be determined for such Eurodollar Rate
         Advances,

                       (ii) each such Advance will automatically, on the last
         day of the then existing Interest Period therefor, Convert into a Base
         Rate Advance (or if such Advance is then a Base Rate Advance, will
         continue as a Base Rate Advance), and

                      (iii) the obligations of the Lenders to make, or to
         Convert Advances into, Eurodollar Rate Advances shall be suspended
         until the Administrative Agent shall notify the Company and the Lenders
         that the circumstances causing such suspension no longer exist.

                  (d) If, with respect to any Eurodollar Rate Advances, the
Majority Lenders determine and give notice to the Administrative Agent that, as
a result of conditions in or generally affecting the London interbank eurodollar
market, the rates of interest determined on the basis of the Eurodollar Rate for
any Interest Period for such Advances will not adequately reflect the cost to
such Majority Lenders of making, funding or maintaining their respective
Eurodollar Rate Advances for such Interest Period, the Administrative Agent
shall forthwith so notify the Company and the Lenders, whereupon,

                                       27
<PAGE>   32

                       (i) each such Advance will automatically, on the last day
         of the then existing Interest Period therefor, Convert into a Base Rate
         Advance, and

                       (ii) the obligation of the Lenders to make, or to Convert
         Advances into, Eurodollar Rate Advances shall be suspended until the
         Administrative Agent shall notify the Company and the Lenders that the
         circumstances causing such suspension no longer exist.

                  (e) If the applicable Borrower shall fail to select the
duration of any Interest Period for any Eurodollar Rate Advances in accordance
with the provisions contained in the definition of "Interest Period" in Section
1.1, the Administrative Agent will forthwith so notify the applicable Borrower
and the Lenders and such Advances will automatically, on the last day of the
then existing Interest Period therefor, Convert into Base Rate Advances.

                  (f) On the date on which the aggregate unpaid principal amount
of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by
payment or prepayment or otherwise, to less than $10,000,000, such Eurodollar
Rate Advances shall automatically Convert into Base Rate Advances, and on and
after such date the right of the applicable Borrower to Convert such Advances
into Eurodollar Rate Advances shall terminate; provided, however, that if and so
long as each such Eurodollar Rate Advance shall have the same Interest Period as
Eurodollar Rate Advances comprising another Borrowing or other Borrowings, and
the aggregate unpaid principal amount of all such Eurodollar Rate Advances shall
equal or exceed $20,000,000, the applicable Borrower shall have the right to
continue all such Advances as, or to Convert all such Advances into Eurodollar
Rate Advances having the same Interest Period.

                  (g) If any Reference Lender shall for any reason no longer
have a Commitment or any Revolving Credit Advances, such Reference Lender shall
thereupon cease to be a Reference Lender, and if, as a result, there shall only
be one Reference Lender remaining, the Administrative Agent (after consultation
with the Company and the Lenders) shall, by notice to the Company and the
Lenders, designate another Lender as a Reference Lender so that there shall at
all times be at least two Reference Lenders.

                  SECTION II.14 Voluntary Conversion of Advances. Any Borrower
may on any Business Day, upon notice given to the Administrative Agent, not
later than 10:00 A.M. (New York City time) on the Business Day of the proposed
Conversion of Eurodollar Rate Advances to Base Rate Advances and not later than
12:00 noon (New York City time) on the third Business Day prior to the date of
the proposed Conversion in the case of a Conversion of Base Rate Advances to
Eurodollar Rate Advances, and subject to the provisions of Sections 2.13, 2.16
and 2.18, Convert all Advances of one Type comprising the same Borrowing into
Advances of another Type; provided, however, that any Conversion of any
Eurodollar Rate Advances into Base Rate Advances made on any day other than the
last day of an Interest Period for such Eurodollar Rate Advances shall be
subject to the provisions of Section 9.4(b); and provided, further, that no
Revolving Credit Advance may be converted into a Eurodollar Rate Advance after
the date that is one month prior to (a) in the case of a Revolving Credit
Advance made by an

                                       28
<PAGE>   33

Objecting Lender, the second anniversary of such Objecting Lender's Commitment
Expiration Date, and (b) in the case of all Revolving Credit Advances, the
second anniversary of the Termination Date and provided, still further, that no
Revolving Credit Advance may be converted into a Eurodollar Rate Advance if an
Event of Default has occurred and is continuing. Each such notice of a
Conversion shall, within the restrictions specified above, specify (a) the date
of such Conversion, (b) the Advances to be Converted, and (c) if such Conversion
is into Eurodollar Rate Advances, the duration of the Interest Period for each
such Advance.

                  SECTION II.15 Optional and Mandatory Prepayments. (a) Optional
Prepayments. Any Borrower may upon (i) in the case of Eurodollar Rate Advances,
at least two Business Days' notice and (ii) in the case of Base Rate Advances,
telephonic notice not later than 12:00 noon (New York City time) on the date of
prepayment, to the Administrative Agent which specifies the proposed date and
aggregate principal amount of the prepayment and the Type of Advances to be
prepaid, and if such notice is given such Borrower shall, prepay the outstanding
principal amounts of the Revolving Credit Advances comprising the same Borrowing
in whole or ratably in part, together with accrued interest to the date of such
prepayment on the amount prepaid; provided, however, that (A) each partial
prepayment shall be in an aggregate principal amount not less than $10,000,000
or an integral multiple of $1,000,000 in excess thereof and (B) in the event of
any such prepayment of Eurodollar Rate Advances on any day other than the last
day of an Interest Period for such Eurodollar Rate Advances, such Borrower shall
be obligated to reimburse the Lenders in respect thereof pursuant to, and to the
extent required by, Section 9.4(b); provided, further, however, that such
Borrower will use its best efforts to give notice to the Administrative Agent of
the proposed prepayment of Base Rate Advances on the Business Day prior to the
date of such proposed prepayment.

                  (b) Mandatory Prepayments. If, at any time and from time to
time, the aggregate principal amount of Advances (other than Advances of
Objecting Lenders) then outstanding exceeds the Commitments of all the Lenders
after giving effect to any reduction of the Commitments pursuant to Section 2.9,
the Borrowers shall immediately prepay the Revolving Credit Advances of Lenders
(other than Objecting Lenders) (to the extent there are such outstanding
Revolving Credit Advances) by an amount equal to such excess.

                  SECTION II.16 Increased Costs. (a) If, due to either (i) the
introduction after the date of this Agreement of or any change after the date of
this Agreement (including any change by way of imposition or increase of reserve
requirements or assessments other than those referred to in the definition of
"Eurodollar Reserve Percentage" contained in Section 1.1) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request issued or made after the date of this Agreement from or by
any central bank or other governmental authority (whether or not having the
force of law), in each case above other than those referred to in Section 2.17,
there shall be any increase in the cost to any Lender of agreeing to make, fund
or maintain, or of making, funding or maintaining, Eurodollar Rate Advances
funded in the interbank Eurodollar market, then the Borrowers shall from time to
time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender additional amounts sufficient to reimburse such Lender for all such
increased costs (except those costs incurred more than 60 days prior to the date
of such

                                       29
<PAGE>   34

demand; for the purposes hereof any cost or expense allocable to a period prior
to the publication or effective date of such an introduction, change, guideline
or request shall be deemed to be incurred on the later of such publication or
effective date). Each Lender agrees to use its best efforts promptly to notify
the Company of any event referred to in clause (i) or (ii) above, provided that
the failure to give such notice shall not affect the rights of any Lender under
this Section 2.16(a) (except as otherwise expressly provided above in this
Section 2.16(a)). A certificate as to the amount of such increased cost,
submitted to the Company and the Administrative Agent by such Lender, shall be
conclusive and binding for all purposes, absent manifest error. After one or
more Lenders have notified the Company of any increased costs pursuant to this
Section 2.16, the Company may specify by notice to the Administrative Agent and
the affected Lenders that, after the date of such notice whenever the election
of Eurodollar Rate Advances by the applicable Borrower for an Interest Period or
portion thereof would give rise to such increased costs, such election shall not
apply to the Revolving Credit Advances of such Lenders during such Interest
Period or portion thereof, and, in lieu thereof, such Revolving Credit Advances
shall during such Interest Period or portion thereof be Base Rate Advances. Each
Lender agrees to use its best efforts (including a reasonable effort to change
its lending office or to transfer its affected Advances to an affiliate of such
Lender) to avoid, or minimize the amount of, any demand for payment from the
Borrowers under this Section 2.16.

                  (b) In the event that any Lender shall change its lending
office and such change results (at the time of such change) in increased costs
to such Lender, the Borrowers shall not be liable to such Lender for such
increased costs incurred by such Lender to the extent, but only to the extent,
that such increased costs shall exceed the increased costs which such Lender
would have incurred if the lending office of such Lender had not been so
changed, but, subject to subsection (a) above and to Section 2.18, nothing
herein shall require any Lender to change its lending office for any reason.

                  SECTION II.17 Increased Capital. If either (a) the
introduction of or any change in or in the interpretation of any law or
regulation or (b) compliance by any Lender with any guideline or request from
any central bank or other governmental authority (whether or not having the
force of law) affects or would affect the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such Lender and
such Lender determines that the amount of such capital is increased by or based
upon the existence of such Lender's commitment to lend hereunder and other
commitments of this type, then, within ten days after demand, and delivery to
the Company of the certificate referred to in the last sentence of this Section
2.17 by such Lender (with a copy of such demand to the Administrative Agent),
the applicable Borrowers shall pay to the Administrative Agent for the account
of such Lender, from time to time as specified by such Lender, additional
amounts sufficient to compensate such Lender or such corporation in the light of
such circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder (except any such increase in capital incurred more than, or
compensation attributable to the period before, 90 days prior to the date of
such demand; for the purposes hereof any increase in capital allocable to, or
compensation attributable to, a period prior to the publication or effective
date of such an introduction, change, guideline or request shall be deemed to be
incurred on the later of such publication or effective date). Each Lender

                                       30
<PAGE>   35

agrees to use its best efforts promptly to notify the Company of any event
referred to in clause (a) or (b) above, provided that the failure to give such
notice shall not affect the rights of any Lender under this Section 2.17 (except
as otherwise expressly provided above in this Section 2.17). A certificate in
reasonable detail as to the basis for, and the amount of, such compensation
submitted to the Company by such Lender shall, in the absence of manifest error,
be conclusive and binding for all purposes.

                  SECTION II.18 Illegality. Notwithstanding any other provision
of this Agreement, if the introduction of or any change in or in the
interpretation of any law or regulation shall make it unlawful, or any central
bank or other governmental authority shall assert that it is unlawful, for any
Lender or its lending office to perform its obligations hereunder to make
Eurodollar Rate Advances or to continue to fund or maintain such Advances
hereunder, such Lender may, by notice to the Company and the Administrative
Agent, suspend the right of the Borrowers to elect Eurodollar Rate Advances from
such Lender and, if necessary in the reasonable opinion of such Lender to comply
with such law or regulation, Convert all such Eurodollar Rate Advances of such
Lender to Base Rate Advances at the latest time permitted by the applicable law
or regulation, and such suspension and, if applicable, such Conversion shall
continue until such Lender notifies the Company and the Administrative Agent
that the circumstances making it unlawful for such Lender to perform such
obligations no longer exist (which such Lender shall promptly do when such
circumstances no longer exist). So long as the obligation of any Lender to make
Eurodollar Rate Advances has been suspended under this Section 2.18, all Notices
of Borrowing specifying Advances of such Type shall be deemed, as to such
Lender, to be requests for Base Rate Advances. Each Lender agrees to use its
best efforts (including a reasonable effort to change its lending office or to
transfer its affected Advances to an affiliate) to avoid any such illegality.

                  SECTION II.19 Pro Rata Treatment, Payments and Computations.
(a) Each Borrowing by any Borrower in respect of Revolving Credit Advances
(subject to the provisions of Section 2.24(e)) shall be made pro rata according
to the respective Commitment Percentages of the Lenders. The Borrowers shall
make each payment hereunder (including under Section 2.6, 2.8, 2.10 or 2.11) and
under the Notes, whether the amount so paid is owing to any or all of the
Lenders or to the Administrative Agent, not later than 12:00 noon (New York City
time) without setoff, counterclaim, or any other deduction whatsoever, on the
day when due in Dollars to the Administrative Agent at its address at 270 Park
Avenue, New York, New York 10017, Reference: El Paso Energy Corporation, or at
such other location designated by notice to the Company from the Administrative
Agent and agreed to by the Company, in same day funds. The Administrative Agent
will promptly thereafter cause to be distributed like funds relating to the
payment of principal or interest or facility fees ratably (other than amounts
payable pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) according to the
respective amounts of such principal, interest or facility fees then due and
owing to the Lenders, and like funds relating to the payment of any other amount
payable to any Lender to such Lender, in each case to be applied in accordance
with the terms of this Agreement. Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 9.7(d), from and after the effective date specified in such
Assignment and Acceptance, the Administrative Agent shall make all payments
hereunder and under the Notes in respect of

                                       31
<PAGE>   36

the interest assigned thereby to the Lender assignee thereunder, and the parties
to such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.

                  (b) All computations of interest based on the Prime Rate and
of facility fees shall be made by the Administrative Agent on the basis of a
year of 365 or 366 days, as the case may be, and all computations of interest
based on the Eurodollar Rate or the Effective Federal Funds Rate shall be made
by the Administrative Agent, and all computations of interest pursuant to
Section 2.12 shall be made by each Lender with respect to its own Advances, on
the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.12, 2.16, 2.17, 2.18 or 2.20,
by each Lender with respect to its own Advances) of an interest rate or an
increased cost or increased capital or of illegality hereunder shall be
conclusive and binding for all purposes if made reasonably and in good faith.

                  (c) Whenever any payment hereunder or under the Notes shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest; provided, however,
if such extension would cause payment of interest on or principal of Eurodollar
Rate Advances to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.

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

                  SECTION II.20 Taxes. (a) Any and all payments by the Borrowers
hereunder or under the Notes to each Indemnified Party shall be made, in
accordance with Section 2.19, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding all taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, imposed by the jurisdiction under the laws of which such
Indemnified Party is organized, domiciled, resident or doing business, or any
political subdivision thereof or by any jurisdiction in which such Indemnified
Party holds any interest in connection with this Agreement or any Note
(including in the case of each Lender, the jurisdiction of such Lender's lending
office) or

                                       32
<PAGE>   37

any political subdivision thereof, other than by any jurisdiction with which the
Indemnified Party's connection arises solely from having executed, delivered or
performed obligations or received a payment under, or enforced, this Agreement
or any Note (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes"). If any
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note to any Indemnified Party, (i) the sum
payable shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.20) such Indemnified Party receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Borrower shall
make or cause to be made such deductions and (iii) such Borrower shall pay or
cause to be paid the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law, provided that the Borrowers
shall not be required to pay any additional amount (and shall be relieved of any
liability with respect thereto) pursuant to this subsection (a) to any
Indemnified Party that either (A) on the date such Lender became an Indemnified
Party hereunder, (I) was not entitled to submit a U.S. Internal Revenue Service
form 1001 (relating to such Indemnified Party, and entitling it to a complete
exemption from United States withholding taxes on all amounts to be received by
such Indemnified Party pursuant to this Agreement) and a U.S. Internal Revenue
Service form 4224 (relating to all amounts to be received by such Indemnified
Party pursuant to this Agreement) and (II) was not a United States person (as
such term is defined in Section 7701(a)(30) of the Internal Revenue Code) or (B)
has failed to submit any form or certificate that it was required to file or
provide pursuant to subsection (d) of this Section 2.20 and is entitled to file
or give, as applicable, under applicable law, provided, further, that should an
Indemnified Party become subject to Taxes because of its failure to deliver a
form required hereunder, the Borrowers shall take such steps as such Indemnified
Party shall reasonably request to assist such Indemnified Party to recover such
Taxes, and provided, further, that each Indemnified Party, with respect to
itself, agrees to indemnify and hold harmless the Borrowers from any taxes,
penalties, interest and other expenses, costs and losses incurred or payable by
the Borrowers as a result of the failure of any of the Borrowers to comply with
its obligations under clause (ii) or (iii) above in reliance on any form or
certificate provided to it by such Indemnified Party pursuant to this Section
2.20. If any Indemnified Party receives a net credit or refund in respect of
such Taxes or amounts so paid by the Borrowers, it shall promptly notify the
Company of such net credit or refund and shall promptly pay such net credit or
refund to the applicable Borrower, provided that the applicable Borrower agrees
to return such net credit or refund if the Indemnified Party to which such net
credit or refund is applicable is required to repay it.

                  (b) In addition, each Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made by such Borrower hereunder
or under the Notes or from the execution, delivery or performance of, or
otherwise with respect to, this Agreement or the Notes (hereinafter referred to
as "Other Taxes").

                  (c) Each Borrower will indemnify each Indemnified Party and
the Administrative Agent for the full amount of Taxes or Other Taxes (including
any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under
this Section 2.20) paid by such

                                       33
<PAGE>   38

Indemnified Party and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto except as a result of the gross
negligence (which shall in any event include the failure of such Indemnified
Party to provide to the Borrowers any form or certificate that it was required
to provide pursuant to subsection (d) below) or willful misconduct of such
Indemnified Party, whether or not such Taxes or Other Taxes were correctly or
legally asserted. This indemnification shall be made within 30 days from the
date such Indemnified Party makes written demand therefor.

                  (d) On or prior to the date on which each Indemnified Party
organized under the laws of a jurisdiction outside the United States becomes an
Indemnified Party hereunder, such Indemnified Party shall provide the Company
with U.S. Internal Revenue Service form 1001 or 4224, as appropriate, or any
successor form prescribed by the U.S. Internal Revenue Service, certifying that
such Indemnified Party is fully exempt from United States withholding taxes with
respect to all payments to be made to such Indemnified Party hereunder, or other
documents satisfactory to the Company indicating that all payments to be made to
such Indemnified Party hereunder are fully exempt from such taxes. Thereafter
and from time to time (but only so long as such Indemnified Party remains
lawfully able to do so), each such Indemnified Party shall submit to the Company
such additional duly completed and signed copies of one or the other of such
Forms (or such successor Forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may be (i) notified by any
Borrower to such Indemnified Party and (ii) required under then-current United
States law or regulations to avoid United States withholding taxes on payments
in respect of all amounts to be received by such Indemnified Party pursuant to
this Agreement or the Notes. Upon the request of any Borrower from time to time,
each Indemnified Party that is a United States person (as such term is defined
in Section 7701(a)(30) of the Internal Revenue Code) shall submit to the Company
a certificate to the effect that it is such a United States person. If any
Indemnified Party determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Company any form or certificate that such
Indemnified Party is obligated to submit pursuant to this subsection (d), or
that such Indemnified Party is required to withdraw or cancel any such form or
certificate previously submitted, such Indemnified Party shall promptly notify
the Company of such fact.

                  (e) Any Indemnified Party claiming any additional amounts
payable pursuant to this Section 2.20 shall use its best efforts (consistent
with its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its lending office if the making of such a change would avoid
the need for, or reduce the amount of, any such additional amounts which may
thereafter accrue and would not, in the reasonable judgment of such Indemnified
Party, be otherwise disadvantageous to such Indemnified Party.

                  (f) Without prejudice to the survival of any other agreement
of the Borrowers hereunder, the agreements and obligations of the Borrowers and
each Indemnified Party contained in this Section 2.20 shall survive the payment
in full of principal and interest hereunder and under the Notes.

                                       34
<PAGE>   39

                  (g) Any other provision of this Agreement to the contrary
notwithstanding, any amounts which are payable by any Borrower under this
Section 2.20 shall not be payable under Section 2.16.

                  SECTION II.21 Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the Advances made by it (other
than pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) in excess of its
ratable share of payments on account of the Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Advances made by them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them,
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and each Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Lender's ratable share (according to the proportion of (a) the amount of
such Lender's required repayment to (b) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. Each Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of such
Borrower in the amount of such participation.

                  SECTION II.22 Use of Proceeds. Proceeds of the Advances may be
used for general business purposes of the Borrowers and their respective
Subsidiaries, including for acquisitions and for payment of commercial paper
issued by the Borrowers, and to refinance any Indebtedness of the Borrowers and
their respective Subsidiaries (whether in connection with any acquisition or
otherwise).

                  SECTION II.23 Extension of Stated Termination Date. (a) Not
less than 45 days and not more than 60 days prior to the Stated Termination Date
then in effect, provided that no Event of Default shall have occurred and be
continuing, the Company may request an extension of such Stated Termination Date
by submitting to the Administrative Agent an Extension Request containing the
information in respect of such extension specified in Exhibit M, which the
Administrative Agent shall promptly furnish to each Lender. Each Lender shall,
not less than 30 days and not more than 60 days prior to the Stated Termination
Date then in effect, notify the Company and the Administrative Agent of its
election to extend or not extend the Stated Termination Date as requested in
such Extension Request. Notwithstanding any provision of this Agreement to the
contrary, any notice by any Lender of its willingness to extend the Stated
Termination Date shall be revocable by such Lender in its sole and absolute
discretion at any time prior to the date which is 30 days prior to the Stated
Termination Date then in effect. If the Required Lenders shall approve in
writing the extension of the Stated Termination Date requested in such Extension
Request, the Stated Termination Date shall automatically and without any further
action by any Person be extended for the period specified in such Extension
Request; provided that (i) each extension pursuant to this Section 2.23 shall be
for a maximum of 364 days and (ii) the Commitment of any Lender that does not
consent in writing, or which

                                       35
<PAGE>   40

revokes, in accordance with the provisions of this Section 2.23, its consent to
such extension not less than 30 days and not more than 60 days prior to the
Stated Termination Date then in effect and has not thereafter reinstated its
consent (an "Objecting Lender") shall, unless earlier terminated in accordance
with this Agreement, expire on the Stated Termination Date in effect on the date
of such Extension Request (such Stated Termination Date, if any, being referred
to as the "Commitment Expiration Date" with respect to such Objecting Lender).
If, not less than 30 days and not more than 60 days prior to the Stated
Termination Date then in effect, the Required Lenders shall not approve in
writing the extension of the Stated Termination Date requested in an Extension
Request, the Stated Termination Date shall not be extended pursuant to such
Extension Request. The Administrative Agent shall promptly notify (y) the
Lenders and the Company of any extension of the Stated Termination Date pursuant
to this Section 2.23 and (z) the Company and the Lenders of any Lender which
becomes an Objecting Lender.

                  (b) Revolving Credit Advances owing to any Objecting Lender on
the Commitment Expiration Date with respect to such Lender shall be repaid in
full on or before the date that is two years after such Commitment Expiration
Date.

                  (c) The Borrowers shall have the right, so long as no Event of
Default has occurred and is then continuing, upon giving notice to the
Administrative Agent and the Objecting Lenders in accordance with Section 2.15,
to prepay in full the Revolving Credit Advances of the Objecting Lenders,
together with accrued interest thereon, any amounts payable pursuant to Sections
2.11, 2.12, 2.16, 2.17, 2.18, 2.20 and 9.4(b) and any accrued and unpaid
facility fee or other amounts payable to the Objecting Lenders hereunder and/or,
upon giving not less than three Business Days' notice to the Objecting Lenders
and the Administrative Agent, to cancel the whole or part of the Commitments of
the Objecting Lenders.

                  (d) Notwithstanding the foregoing, if any Lender becomes an
Objecting Lender, the Borrower may, at its own expense and in its sole
discretion and prior to the then Stated Termination Date, require such Lender to
transfer or assign, in whole or in part, without recourse (in accordance with
Section 9.7), all or part of its interests, rights and obligations under this
Agreement to an Eligible Assignee (provided that the Borrower, with the full
cooperation of such Lender, can identify an Eligible Assignee that is ready,
willing and able to be an assignee with respect thereto) which shall assume such
assigned obligations (which assignee may be another Lender, if such assignee
Lender accepts such assignment); provided that (A) the assignee or the Borrower,
as the case may be, shall have paid to such Lender in immediately available
funds the principal of and interest accrued to the date of such payment on the
Advances made by it hereunder and all other amounts owed to it hereunder,
including any amounts owing pursuant to Section 9.4(b) and any amounts that
would be owing under said Section if such Advances were prepaid on the date of
such assignment, and (B) such assignment does not conflict with any law, rule or
regulation or order of any governmental authority. Any assignee which becomes a
Lender as a result of such an assignment made pursuant to this paragraph (d)
shall be deemed to have consented to the applicable Extension Request and,
therefore, shall not be an Objecting Lender.

                  SECTION II.24  [Intentionally Left Blank]

                                       36
<PAGE>   41

                  SECTION II.25 Replacement of Lenders. If any Lender requests
compensation under Sections 2.12, 2.16 or 2.17 or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.20, or if any Lender suspends the
right of any Borrower to elect Eurodollar Rate Advances from such Lender
pursuant to Section 2.18, or if any Lender defaults in its obligation to fund
Advances hereunder, then the Company 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 Section 9.7), all its interests, rights and
obligations under this Agreement (other than any outstanding CAF Advances held
by it) to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the
Company shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Advances (other than CAF Advances), accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrowers (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Sections 2.12 , 2.16 or 2.17 or
payments required to be made pursuant to Section 2.20, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply.

                                       37
<PAGE>   42

                                   ARTICLE III

                     CONDITIONS OF EFFECTIVENESS AND LENDING

                  SECTION III.1 Conditions Precedent to Effectiveness of this
Agreement. This Agreement shall become effective (the "Effective Date") when (i)
it shall have been executed by the Company, EPNGC Tennessee, the Administrative
Agent, the CAF Advance Agent, the Co-Documentation Agents and the Syndication
Agent and (ii) the Administrative Agent and the Company either shall have been
notified by each Lender that such Lender has executed it or shall have received
a counterpart of this Agreement executed by such Lender (or compliance with the
forgoing shall have been waived by the Lenders). Anything in this Agreement to
the contrary notwithstanding, if all of the conditions to effectiveness of this
Agreement specified in this Section 3.1 shall not have been fulfilled on or
before August 31, 2000, (i) the Company shall on such date pay all accrued and
unpaid facility fees pursuant to Section 2.8 and (ii) this Agreement, and all of
the obligations of the Company, the Lenders, the Administrative Agent and the
CAF Advance Agent hereunder, shall be terminated on and as of 5:00 P.M. (New
York City time) on August 31, 2000; provided, however, that as soon as the
Administrative Agent determines that all of the conditions to effectiveness of
this Agreement specified in this Section 3.1 shall have been fulfilled on or
before August 31, 2000, the Administrative Agent shall furnish written notice to
the Company and the Lenders to the effect that it has so determined, and such
notice by the Administrative Agent shall constitute conclusive evidence that
this Agreement shall have become effective for all purposes. Notwithstanding the
foregoing, the obligations of the Company to pay fees pursuant to Section 2.8 as
well as all obligations of the Borrowers pursuant to Section 9.4 shall survive
the termination of this Agreement.

                  SECTION III.2 Conditions Precedent to Initial Advances. The
agreement of each Lender to make the initial Advances to be made by it to the
Borrowers hereunder is subject to (the date upon which all conditions listed in
Section 3.2(a) and 3.2(b) are satisfied, the "Closing Date") (a) the occurrence
of the Effective Date hereunder and (b) the receipt by the Administrative Agent
of the following in form and substance satisfactory to the Administrative Agent
and in sufficient copies for each Lender:

                  (i) Certified copies of the resolutions of the Board of
         Directors of each of the Company, EPNGC and Tennessee approving the
         borrowings contemplated hereby and authorizing the execution of this
         Agreement and the Notes, and of all documents evidencing other
         necessary Business Entity action of each of the Company, EPNGC and
         Tennessee and governmental approvals to each of the Company, EPNGC and
         Tennessee, if any, with respect to this Agreement and the Notes.

                  (ii) A certificate of the Secretary or an Assistant Secretary
         of each of the Company, EPNGC and Tennessee certifying the names and
         true signatures of the officers of each of the Company, EPNGC and
         Tennessee authorized to sign this Agreement and the other documents to
         be delivered by it hereunder.

                                       38
<PAGE>   43

                  (iii) A favorable opinion of the Senior Counsel of the
         Company, or the Associate General Counsel of the Company, in
         substantially the form of Exhibit G.

                  (iv) A favorable opinion of Jones, Day, Reavis & Pogue, New
         York counsel to the Company, EPNGC and Tennessee, in substantially the
         form of Exhibit H.

                  (v) A letter from the Process Agent, in substantially the form
         of Exhibit I, agreeing to act as Process Agent for each of the Company,
         EPNGC and Tennessee and to forward forthwith all process received by it
         to the Company, EPNGC and Tennessee, as applicable.

                  (vi) Evidence satisfactory to the Administrative Agent that
         all advances, accrued interest and other fees and any other amounts
         owing to the lenders and the agents under the Existing 364-Day Facility
         and the Existing 5-Year Facility shall have been, or simultaneously
         with the initial Advances are being, paid in full, and the commitments
         to make advances thereunder shall have been cancelled.

                  SECTION III.3 Conditions Precedent to Initial Advances to Any
Borrowing Subsidiary. The agreement of each Lender to make the initial Advances
to be made by it to any Borrowing Subsidiary (other than EPNGC and Tennessee) is
further subject to the Administrative Agent receiving the following, in form and
substance satisfactory to the Administrative Agent and (except for the Notes) in
sufficient copies for each Lender:

                  (a) A Joinder Agreement executed and delivered by such
         Borrowing Subsidiary conforming to the requirements hereof.

                  (b) Notes, dated the date such Borrowing Subsidiary executes
         and delivers its Joinder Agreement, made by such Borrowing Subsidiary
         to the order of each Lender requesting a Note, respectively.

                  (c) A certificate of the Secretary or an Assistant Secretary
         of such Borrowing Subsidiary certifying the names and true signature of
         the officers of such Borrowing Subsidiary authorized to sign the
         Joinder Agreement and the other documents to be delivered by it
         hereunder.

                  (d) A favorable opinion of the Senior Counsel or Associate
         General Counsel of the Company, given upon the express instructions of
         the Company, in substantially the form of Exhibit K, and as to such
         other matters as any Lender through the Administrative Agent may
         reasonably request, with such assumptions, qualifications and
         exceptions as the Administrative Agent may approve.

                  (e) A favorable opinion of Jones, Day, Reavis & Pogue or other
         New York counsel to the Company reasonably satisfactory to the
         Administrative Agent, in substantially the form of Exhibit L, and as to
         such other matters as any Lender through

                                       39
<PAGE>   44

         the Administrative Agent may reasonably request, with such assumptions,
         qualifications and exceptions as the Administrative Agent may approve.

                  (f) A letter from the Process Agent, in substantially the form
         of Exhibit I, agreeing to act as Process Agent for such Borrowing
         Subsidiary, as the case may be, and to forward forthwith all process
         received by it to such Borrowing Subsidiary.

                  SECTION III.4 Conditions Precedent to Each Borrowing. The
obligation of each Lender to make an Advance (including the initial Advance, but
excluding any continuation or Conversion of an Advance) on the occasion of any
Borrowing shall be subject to the conditions precedent that on or before the
date of such Borrowing this Agreement shall have become effective pursuant to
Section 3.1 and, before and immediately after giving effect to such Borrowing
and to the application of the proceeds therefrom, the following statements shall
be true and correct, and the giving by the applicable Borrower or the Company on
such Borrower's behalf of the applicable Notice of Borrowing and the acceptance
by the applicable Borrower of the proceeds of such Borrowing shall constitute
its representation and warranty that on and as of the date of such Borrowing,
before and immediately after giving effect thereto and to the application of the
proceeds therefrom, the following statements are true and correct:

                  (i) each representation and warranty contained in Section 4.1
         is correct in all material respects as though made on and as of such
         date; and

                  (ii) no event has occurred and is continuing, or would result
         from such Borrowing, which constitutes an Event of Default or a
         Default.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  SECTION IV.1 Representations and Warranties of the Borrowers.
Each Borrower represents and warrants as follows:

                  (a) The Company is a Business Entity duly formed, validly
         existing and, if applicable, in good standing under the laws of the
         State of Delaware. Each Principal Subsidiary is duly organized or
         formed, validly existing and, if applicable, in good standing in the
         jurisdiction of its organization or formation. The Company and each
         Principal Subsidiary possess all applicable Business Entity powers and
         all other authorizations and licenses necessary to engage in its\
         business and operations as now conducted, the failure to obtain or
         maintain which would have a Material Adverse Effect.

                  (b) The execution, delivery and performance by each Borrower
         of this Agreement, each Joinder Agreement, if any, to which it is a
         party and its Notes (as applicable) are within such Borrower"s
         applicable Business Entity powers, have been duly authorized by all
         necessary applicable Business Entity action, and do not contravene

                                       40
<PAGE>   45

         (A) such Borrower's organizational documents or (B) any law or any
         material contractual restriction binding on or affecting such Borrower.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         is required for the due execution, delivery and performance by such
         Borrower of this Agreement, each Joinder Agreement, if any, to which it
         is a party or its Notes (as applicable), except those necessary to
         comply with laws, rules, regulations and orders required in the
         ordinary course to comply with ongoing obligations of such Borrower
         under Section 5.1(a) and (b).

                  (d) This Agreement constitutes, its Notes and each Joinder
         Agreement, if any, to which it is a party (as applicable) when
         delivered hereunder shall constitute the legal, valid and binding
         obligations of each Borrower, enforceable against such Borrower in
         accordance with their respective terms, except as may be limited by any
         applicable bankruptcy, insolvency, reorganization, moratorium or
         similar laws affecting creditors' rights generally or by general
         principles of equity.

                  (e) The consolidated balance sheet of the Company and its
         consolidated Subsidiaries as at December 31, 1999, and the related
         consolidated statements of income and cash flows of the Company and its
         consolidated Subsidiaries for the fiscal year then ended, reported on
         by PricewaterhouseCoopers LLP, independent public accountants, copies
         of which have been furnished to the Administrative Agent and the
         Lenders prior to the date hereof, fairly present the consolidated
         financial condition of the Company and its consolidated Subsidiaries as
         at such date and the consolidated results of the operations of the
         Company and its consolidated Subsidiaries for the period ended on such
         date, all in accordance with GAAP consistently applied, and since
         December 31, 1999, there has been no material adverse change in such
         condition or operations. The unaudited consolidated balance sheet of
         the Company and its consolidated Subsidiaries as of March 31, 2000, and
         the related consolidated statements of income and cash flows of the
         Company and its consolidated Subsidiaries for the three months then
         ended, certified by the chief financial officer of the Company, copies
         of which have been furnished to the Administrative Agent and the
         Lenders prior to the date hereof, fairly present the consolidated
         results of operations of the Company and its consolidated Subsidiaries
         for the three months then ended, all in accordance with GAAP
         consistently applied (except as approved by the chief financial officer
         of the Company and as disclosed therein) and subject to normal year-end
         audit adjustments.

                  (f) Each of the Company and its Subsidiaries is in compliance
         with all laws, rules, regulations and orders of any governmental
         authority applicable to it or its property except where the failure to
         comply, individually or in the aggregate, would not in the reasonable
         judgment of the Company be expected to result in a Material Adverse
         Effect.

                  (g) There is no action, suit or proceeding pending, or to the
         knowledge of any Borrower threatened, against or involving the Company
         or any Principal Subsidiary in any court, or before any arbitrator of
         any kind, or before or by any governmental body,

                                       41
<PAGE>   46

         existing as at the Effective Date which in the reasonable judgment of
         the Company (taking into account the exhaustion of all appeals) would
         have a Material Adverse Effect, or which purports to affect the
         legality, validity, binding effect or enforceability of this Agreement
         or the Notes.

                  (h) The Company and each Principal Subsidiary have duly filed
         all tax returns required to be filed, and have duly paid and discharged
         all taxes, assessments and governmental charges upon it or against its
         properties now due and payable, the failure to file or pay which, as
         applicable, would have a Material Adverse Effect, unless and to the
         extent only that the same are being contested in good faith and by
         appropriate proceedings by the Company or the appropriate Subsidiary.

                  (i) The Company and each Principal Subsidiary have good title
         to their respective properties and assets, free and clear of all
         mortgages, liens and encumbrances, except for mortgages, liens and
         encumbrances (including covenants, restrictions, rights, easements and
         minor irregularities in title) which do not materially interfere with
         the business or operations of the Company or such Subsidiary as
         presently conducted or which are permitted by Section 5.2(a), and
         except that no representation or warranty is being made with respect to
         Margin Stock.

                  (j) No Termination Event has occurred or is reasonably
         expected to occur with respect to any Plan which, with the giving of
         notice or lapse of time, or both, would constitute an Event of Default
         under Section 7.1(g).

                  (k) Each Plan has complied with the applicable provisions of
         ERISA and the Code where the failure to so comply would reasonably be
         expected to result in an aggregate liability that would exceed 10% of
         the Net Worth of the Company.

                  (l) The statement of assets and liabilities of each Plan and
         the statements of changes in fund balance and in financial position, or
         the statement of changes in net assets available for plan benefits, for
         the most recent plan year for which an accountant's report with respect
         to such Plan has been prepared, copies of which report have been
         furnished to the Administrative Agent, fairly present the financial
         condition of such Plan as at such date and the results of operations of
         such Plan for the plan year ended on such date.

                  (m) Neither the Company nor any ERISA Affiliate has incurred,
         or is reasonably expected to incur, any Withdrawal Liability to any
         Multiemployer Plan which, when aggregated with all other amounts
         required to be paid to Multiemployer Plans in connection with
         Withdrawal Liability (as of the date of determination), would exceed
         10% of the Net Worth of the Company.

                  (n) Neither the Company nor any ERISA Affiliate has received
         any notification that any Multiemployer Plan is in reorganization,
         insolvent or has been terminated, within the meaning of Title IV of
         ERISA, and no Multiemployer Plan is

                                       42
<PAGE>   47

         reasonably expected to be in reorganization, insolvent or to be
         terminated within the meaning of Title IV of ERISA the effect of which
         reorganization, insolvency or termination would be the occurrence of an
         Event of Default under Section 7.1(i).

                  (o) No Borrower is an "investment company" or a "company"
         controlled by an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (p) No Borrower is a "holding company" or a "subsidiary
         company" of a "holding company" within the meaning of the Public
         Utility Holding Company Act of 1935, as amended.

                  (q) The borrowings by the Borrowers under this Agreement and
         the Notes and the applications of the proceeds thereof as provided
         herein will not violate Regulation T, U or X of the Board of Governors
         of the Federal Reserve System.

All representations and warranties made by the Borrowers herein or made in any
certificate delivered pursuant hereto shall survive the making of the Advances
and the execution and delivery to the Lenders of this Agreement and the Notes.

                                    ARTICLE V

                           COVENANTS OF THE BORROWERS

                  SECTION V.1 Affirmative Covenants. So long as any amount
payable by any Borrower hereunder or under any Note shall remain unpaid or any
Lender shall have any Commitment hereunder, each Borrower will, unless the
Majority Lenders shall otherwise consent in writing:

                  (a) Preservation of Existence, Etc. Preserve and maintain,
         and, in the case of the Company, cause each Principal Subsidiary to
         preserve and maintain, its existence, rights (organizational and
         statutory) and material franchises, except as otherwise permitted by
         Section 5.2(d) or 5.2(e) and except that nothing herein shall prevent
         any change in Business Entity form of the Company or any Principal
         Subsidiary.

                  (b) Compliance with Laws, Etc. Comply, and, in the case of the
         Company, cause each Principal Subsidiary to comply, in all material
         respects with all applicable laws, rules, regulations and orders
         (including all environmental laws and laws requiring payment of all
         taxes, assessments and governmental charges imposed upon it or upon its
         property except to the extent contested in good faith by appropriate
         proceedings) the failure to comply with which would have a Material
         Adverse Effect.

                  (c) Visitation Rights. At any reasonable time and from time to
         time, permit the Administrative Agent or any of the Lenders or any
         agents or representatives thereof,

                                       43
<PAGE>   48

         to examine and make copies of and abstracts from the records and books
         of account of, and visit the properties of, the Company and any of its
         Subsidiaries, and to discuss the affairs, finances and accounts of the
         Company and any of its Subsidiaries with any of their officers and with
         their independent certified public accountants.

                  (d) Books and Records. Keep, and, in the case of the Company,
         cause each of its Subsidiaries to keep, proper books of record and
         account, in which full and correct entries shall be made of all its
         respective financial transactions and the assets and business of the
         Company and each of its Subsidiaries, as applicable, in accordance with
         GAAP either (i) consistently applied or (ii) applied in a changed
         manner provided such change shall have been disclosed to the
         Administrative Agent and shall have been consented to by the
         accountants which (as required by Section 5.3(b)) report on the
         financial statements of the Company and its consolidated Subsidiaries
         for the fiscal year in which such change shall have occurred.

                  (e) Maintenance of Properties, Etc. Maintain and preserve,
         and, in the case of the Company, cause each Principal Subsidiary to
         maintain and preserve, all of its properties which are used in the
         conduct of its business in good working order and condition, ordinary
         wear and tear excepted, to the extent that any failure to do so would
         have a Material Adverse Effect.

                  (f) Maintenance of Insurance. Maintain, and, in the case of
         the Company, cause each Principal Subsidiary to maintain, insurance
         with responsible and reputable insurance companies or associations in
         such amounts and covering such risks as is usually carried by companies
         engaged in similar businesses and owning similar properties in the same
         general areas in which the Company or such Subsidiary operates.

                  SECTION V.2 Negative Covenants. So long as any amount payable
by any Borrower hereunder or under any Note shall remain unpaid or any Lender
shall have any Commitment hereunder, each Borrower will not, unless the Majority
Lenders shall otherwise consent in writing:

                  (a) Liens, Etc. (i) Create, assume or suffer to exist, or, in
         the case of the Company, permit any Principal Subsidiary to create,
         assume or suffer to exist, any Liens upon or with respect to any of its
         Equity Interests in any Principal Subsidiary, whether now owned or
         hereafter acquired, or (ii) create or assume, or, in the case of the
         Company, permit any Principal Subsidiary to create or assume, any Liens
         upon or with respect to any other assets material to the consolidated
         operations of the Company and its consolidated Subsidiaries taken as a
         whole securing the payment of Indebtedness and Guaranties in an
         aggregate amount (determined without duplication of amount (so that the
         amount of a Guaranty will be excluded to the extent the Indebtedness
         Guaranteed thereby is included in computing such aggregate amount))
         exceeding the greater of (x) $300,000,000 and (y) 10% of Net Worth as
         at the date of such creation or assumption; provided, however, that
         this subsection (a) shall not apply to:

                                       44
<PAGE>   49

                           (A) Liens on the Equity Interests in, or Indebtedness
                  or other obligations of, or assets of, any Project Financing
                  Subsidiary (or any Equity Interests in, or Indebtedness or
                  other obligations of, any Business Entity which are directly
                  or indirectly owned by any Project Financing Subsidiary)
                  securing the payment of a Project Financing and related
                  obligations;

                           (B) Liens on (1) assets acquired by the Company or
                  any of its Subsidiaries after February 11, 1992 to the extent
                  that such Liens existed at the time of such acquisition and
                  were not placed thereon by or with the consent of the Company
                  in contemplation of such acquisition and (2) Equity Interests
                  acquired after February 11, 1992 in a Business Entity that has
                  become or becomes a Subsidiary of the Company, or on assets of
                  any such Business Entity, to the extent that such Liens
                  existed at the time of such acquisition and were not placed
                  thereon by or with the consent of the Company in contemplation
                  of such acquisition;

                           (C) Liens created by any Alternate Program or any
                  document executed by any Borrower or any Subsidiary in
                  connection therewith;

                           (D) Liens on Margin Stock;

                           (E) Permitted Liens;

                           (F) Liens arising out of the refinancing, extension,
                  renewal or refunding of any Indebtedness or Guaranty or other
                  obligation secured by any Lien permitted by any of the
                  foregoing clauses of this Section, provided that the principal
                  amount of such Indebtedness or Guaranty or other obligation is
                  not increased (except by the amount of costs reasonably
                  incurred in connection with the issuance thereof) beyond the
                  highest previous amount thereof and such Indebtedness or
                  Guaranty or other obligation is outstanding immediately prior
                  to the refinancing, extension, renewal or refunding and is not
                  secured by any additional assets that would not have been
                  permitted by this Section to secure the Indebtedness or
                  Guaranty or other obligation refinanced, extended, renewed or
                  refunded; and

                           (G) Liens on products and proceeds (including
                  dividend, interest and like payments on, and insurance and
                  condemnation proceeds and rental, lease, licensing and similar
                  proceeds) of, and property evidencing or embodying, or
                  constituting rights or other general intangibles directly
                  relating to or arising out of, and accessions and improvements
                  to, collateral subject to Liens permitted by this Section
                  5.2(a).

                  (b) Consolidated Debt and Guarantees to Capitalization. Permit
         the ratio of (A) the sum of (1) the aggregate amount of consolidated
         Debt of the Company and its consolidated Subsidiaries (without
         duplication of amount under this clause (A) and determined as to all of
         the foregoing entities on a consolidated basis) plus (2) the aggregate
         amount of consolidated Guaranties of the Company and its consolidated

                                       45
<PAGE>   50

         Subsidiaries (without duplication of amount under this clause (A) and
         determined as to all of the foregoing entities on a consolidated basis)
         to (B) Capitalization of the Company (without duplication and
         determined as to all of the foregoing entities on a consolidated basis)
         to exceed .7 to 1.

                  (c) Debt, Etc. In the case of the Company, permit any of its
         consolidated Subsidiaries to incur or become liable for any Debt, any
         Guaranty or any reimbursement obligation with respect to any letter of
         credit (other than any Project Financing), if, immediately after giving
         effect to such Debt, Guaranty or reimbursement obligation and the
         receipt and application of any proceeds thereof or value received in
         connection therewith, the aggregate amount (determined without
         duplication of amount) of Debt, Guaranties and letter of credit
         reimbursement obligations of the Company's consolidated Subsidiaries
         owing to Persons other than the Company and its consolidated
         Subsidiaries (other than any Project Financing) would exceed the
         greater of (x) $600,000,000 and (y) 10% of Net Worth determined as at
         the date of incurrence or assumption thereof; provided, however, that
         the following Debt, Guaranties or reimbursement obligations shall be
         excluded from the application of, and calculation set forth in, this
         paragraph (c): (A) Debt, Guaranties or reimbursement obligations
         incurred by (x) Mojave or (y) EPNGC, (B) Debt, Guaranties or
         reimbursement obligations arising under (x) the EPTPC Facility or (y)
         this Agreement or the 3-Year Facility, (C) Debt, Guaranties or
         reimbursement obligations incurred by El Paso Field Services Company up
         to an amount not to exceed at any time outstanding the tangible net
         worth of El Paso Field Services Company, provided that such Debt may be
         guaranteed by the Company, (D) Excluded Acquisition Debt, (E)
         successive extensions, refinancings or replacements (at the same
         Subsidiary or at any other consolidated Subsidiary of the Company) of
         Debt, Guaranties or reimbursement obligations (or commitments in
         respect thereof) referred to in clauses (A), (B) and (D) above and in
         an amount not in excess of the amounts so extended, refinanced or
         replaced (or the amount of commitments in respect thereof) and (F)
         Debt, Guarantees or reimbursement obligations incurred by Tennessee
         pursuant to one or more commercial paper programs allowing for the
         issuance by Tennessee of items of commercial paper having maturity
         dates not later than one year from the dates of their respective
         issuance provided that such Debt, Guarantees or reimbursement
         obligations of Tennessee shall be in an aggregate amount not to exceed
         at any time the excess of (x) the sum of (1) the aggregate amount of
         Commitments and (2) the aggregate amount of Commitments as defined in
         the 3-Year Facility, over (y) the sum of (1) the aggregate amount of
         Advances, (2) the aggregate amount of Advances, as defined in and
         outstanding pursuant to, the 3-Year Facility, and (3) the aggregate
         principal amount of commercial paper outstanding from time to time that
         (I) is issued by the Company and its Subsidiaries (other than
         Tennessee) and (II) relies upon credit availability under either this
         Agreement or the 3-Year Facility for commercial paper liquidity
         purposes.

                  (d) Sale, Etc. of Assets. Sell, lease or otherwise transfer,
         or, in the case of the Company, permit any Principal Subsidiary to
         sell, lease or otherwise transfer, (in either case, whether in one
         transaction or in a series of transactions) assets constituting all or

                                       46
<PAGE>   51

         substantially all of the consolidated assets of the Company and its
         Principal Subsidiaries taken as a whole, provided that provisions of
         this subsection (d) shall not apply to:

                           (i) any sale of receivables and related rights
                  pursuant to any Alternate Program;

                           (ii) any Project Financing Subsidiary and the assets
                  thereof;

                           (iii) sales, leases or other transfers of assets or
                  capital stock of any Subsidiary of the Company other than any
                  Principal Subsidiary;

                           (iv) any sale of Margin Stock;

                           (v) any sale of up to 20% of the equity of El Paso
                  Field Services Company in an initial public offering of such
                  Person"s Equity Interests ;

                           (vi) any sale, lease or other transfer to the Company
                  or any Principal Subsidiary, or to any Business Entity that
                  after giving effect to such transfer will become and be either
                  (A) a Principal Subsidiary in which the Company's direct or
                  indirect equity interest will be at least as great as its
                  direct or indirect equity interest in the transferor
                  immediately prior thereto or (B) a directly or indirectly
                  wholly-owned Principal Subsidiary; and

                           (vii) any transfer permitted by Section 5.2(e); and

                           (viii) any transfer to the Company or any of its
                  Subsidiaries of any stock or assets other than FERC regulated
                  assets (or stock or any other equity interest in an entity
                  owning FERC regulated assets) used in the mainline gas
                  transmission business; provided that no Event of Default or
                  Default shall have occurred and be continuing before and
                  immediately after giving effect to such transfer.

                  (e) Mergers, Etc. Merge or consolidate with any Person, or in
         the case of the Company permit any of its Principal Subsidiaries to
         merge or consolidate with any Person, except that (i) any Principal
         Subsidiary may merge or consolidate with (or liquidate into) any other
         Subsidiary (other than a Project Financing Subsidiary, unless the
         successor Business Entity is not treated as a Project Financing
         Subsidiary under this Agreement) or may merge or consolidate with (or
         liquidate into) the Company, provided that (A) if such Principal
         Subsidiary merges or consolidates with (or liquidates into) the
         Company, either (x) the Company shall be the continuing or surviving
         Business Entity or (y) the continuing or surviving Business Entity is
         organized under the laws of the United States or a State thereof and
         unconditionally assumes by agreement all of the performance obligations
         and payment Obligations of the Company under this Agreement and the
         Notes and (B) if any such Principal Subsidiary merges or consolidates
         with (or liquidates into) any other Subsidiary, one or more Business
         Entities that are Subsidiaries are the

                                       47
<PAGE>   52

         continuing or surviving Business Entity (ies) and, if either such
         Subsidiary is not directly or indirectly wholly-owned by the Company,
         such merger or consolidation is on an arm's length basis, and (ii) the
         Company or any Principal Subsidiary may merge or consolidate with any
         other Business Entity (that is, in addition to the Company or any
         Subsidiary), provided that (A) if the Company merges or consolidates
         with any such other Business Entity, either (x) the Company is the
         continuing or surviving Business Entity or (y) the continuing or
         surviving Business Entity is organized under the laws of the United
         States or a State thereof and unconditionally assumes by agreement all
         of the performance obligations and payment Obligations of the Company
         under this Agreement and the Notes, (B) if any Principal Subsidiary
         merges or consolidates with any such other Business Entity, the
         surviving Business Entity is directly or indirectly a wholly-owned
         Principal Subsidiary of the Company, (C) if either the Company or any
         Principal Subsidiary merges or consolidates with any such other
         Business Entity, after giving effect to such merger or consolidation no
         Event of Default or Default shall have occurred and be continuing and
         (D) if any Principal Subsidiary which is a party to any merger,
         consolidation or liquidation permitted by this paragraph (e) is a
         Borrowing Subsidiary, either (x) such Principal Subsidiary shall be the
         continuing or surviving Business Entity or (y) the continuing or
         surviving Business Entity is organized under the laws of the United
         States or a State thereof and unconditionally assumes by agreement all
         of the performance obligations and payment Obligations of such
         Borrowing Subsidiary under this Agreement and the Notes (the Borrowers
         and the Lenders agreeing that it is their intention that each Business
         Entity that is a Borrower be organized under the laws of the United
         States or a State thereof).

                  SECTION V.3 Reporting Requirements. So long as any amount
payable by any Borrower hereunder or under any Note shall remain unpaid or any
Lender shall have any Commitment hereunder, the Company will furnish to each
Lender in such reasonable quantities as shall from time to time be requested by
such Lender:

                  (a) as soon as publicly available and in any event within 60
         days after the end of each of the first three fiscal quarters of each
         fiscal year of each of the Company and EPNGC, a consolidated balance
         sheet of each of the Company and EPNGC and its respective consolidated
         subsidiaries as of the end of such quarter, and consolidated statements
         of income and cash flows of each of the Company and EPNGC and its
         respective consolidated subsidiaries each for the period commencing at
         the end of the previous fiscal year and ending with the end of such
         quarter, certified (subject to normal year-end adjustments) as being
         fairly stated in all material respects by the chief financial officer,
         controller or treasurer of the Company and accompanied by a certificate
         of such officer stating (i) whether or not such officer has knowledge
         of the occurrence of any Event of Default which is continuing hereunder
         or of any event not theretofore remedied which with notice or lapse of
         time or both would constitute such an Event of Default and, if so,
         stating in reasonable detail the facts with respect thereto, (ii) all
         relevant facts in reasonable detail to evidence, and the computations
         as to, whether or not the Company is in compliance with the
         requirements set forth in subsections (b) and (c) of Section 5.2,

                                       48
<PAGE>   53

         and (iii) a listing of all Principal Subsidiaries and consolidated
         Subsidiaries of the Company showing the extent of its direct and
         indirect holdings of their stocks;

                  (b) as soon as publicly available and in any event within 120
         days after the end of each fiscal year of each of the Company and
         EPNGC, a copy of the annual report for such year for each of the
         Company and EPNGC and its respective consolidated Subsidiaries
         containing financial statements for such year reported by nationally
         recognized independent public accountants acceptable to the Lenders,
         accompanied by (i) a report signed by said accountants stating that
         such financial statements have been prepared in accordance with GAAP
         and (ii) a letter from such accountants stating that in making the
         investigations necessary for such report they obtained no knowledge,
         except as specifically stated therein, of any Event of Default which is
         continuing hereunder or of any event not theretofore remedied which
         with notice or lapse of time or both would constitute such an Event of
         Default;

                  (c) within 120 days after the close of each of the Company's
         fiscal years, a certificate of the chief financial officer, controller
         or treasurer of the Company stating (i) whether or not he has knowledge
         of the occurrence of any Event of Default which is continuing hereunder
         or of any event not theretofore remedied which with notice or lapse of
         time or both would constitute such an Event of Default and, if so,
         stating in reasonable detail the facts with respect thereto, (ii) all
         relevant facts in reasonable detail to evidence, and the computations
         as to, whether or not the Company is in compliance with the
         requirements set forth in subsections (b) and (c) of Section 5.2 and
         (iii) a listing of all Principal Subsidiaries and consolidated
         Subsidiaries of the Company showing the extent of its direct and
         indirect holdings of their stocks;

                  (d) promptly after the sending or filing thereof, copies of
         all publicly available reports which the Company or any Principal
         Subsidiary sends to any of its security holders and copies of all
         publicly available reports and registration statements which the
         Company or any Principal Subsidiary files with the Securities and
         Exchange Commission or any national securities exchange other than
         registration statements relating to employee benefit plans and to
         registrations of securities for selling security holders;

                  (e) within 10 days after sending or filing thereof, a copy of
         FERC Form No. 2: Annual Report of Major Natural Gas Companies, sent or
         filed by the Company to or with the FERC with respect to each fiscal
         year of the Company;

                  (f) promptly in writing, notice of all litigation and of all
         proceedings before any governmental or regulatory agencies against or
         involving the Company or any Principal Subsidiary, except any
         litigation or proceeding which in the reasonable judgment of the
         Company (taking into account the exhaustion of all appeals) is not
         likely to have a material adverse effect on the consolidated financial
         condition of the Company and its consolidated Subsidiaries taken as a
         whole;

                  (g) within three Business Days after an executive officer of
         the Company obtains knowledge of the occurrence of any Event of Default
         which is continuing or of

                                       49
<PAGE>   54

         any event not theretofore remedied which with notice or lapse of time,
         or both, would constitute an Event of Default, notice of such
         occurrence together with a detailed statement by a responsible officer
         of the Company of the steps being taken by the Company or the
         appropriate Subsidiary to cure the effect of such event;

                  (h) as soon as practicable and in any event (i) within 30 days
         after the Company or any ERISA Affiliate knows or has reason to know
         that any Termination Event described in clause (a) of the definition of
         Termination Event with respect to any Plan has occurred and (ii) within
         10 days after the Company or any ERISA Affiliate knows or has reason to
         know that any other Termination Event with respect to any Plan has
         occurred, a statement of the chief financial officer or treasurer of
         the Company describing such Termination Event and the action, if any,
         which the Company or such ERISA Affiliate proposes to take with respect
         thereto;

                  (i) promptly and in any event within two Business Days after
         receipt thereof by the Company or any ERISA Affiliate, copies of each
         notice received by the Company or any ERISA Affiliate from the PBGC
         stating its intention to terminate any Plan or to have a trustee
         appointed to administer any Plan;

                  (j) promptly and in any event within 30 days after the filing
         thereof with the Internal Revenue Service, copies of each Schedule B
         (Actuarial Information) to the annual report (Form 5500 Series) with
         respect to each Single Employer Plan;

                  (k) promptly and in any event within five Business Days after
         receipt thereof by the Company or any ERISA Affiliate from the sponsor
         of a Multiemployer Plan, a copy of each notice received by the Company
         or any ERISA Affiliate concerning (i) the imposition of Withdrawal
         Liability by a Multiemployer Plan, (ii) the determination that a
         Multiemployer Plan is, or is expected to be, in reorganization or
         insolvent within the meaning of Title IV of ERISA, (iii) the
         termination of a Multiemployer Plan within the meaning of Title IV of
         ERISA, or (iv) the amount of liability incurred, or expected to be
         incurred, by the Company or any ERISA Affiliate in connection with any
         event described in clause (i), (ii) or (iii) above; and

                  (l) as soon as practicable but in any event within 60 days of
         any notice of request therefor, such other information respecting the
         financial condition and results of operations of the Company or any
         Subsidiary of the Company as any Lender through the Administrative
         Agent may from time to time reasonably request.

                  Each balance sheet and other financial statement furnished
pursuant to subsections (a) and (b) of this Section 5.3 shall contain
comparative financial information which conforms to the presentation required in
Form 10-Q and 10-K, as appropriate, under the Securities Exchange Act of 1934,
as amended.

                  SECTION V.4 Restrictions on Material Subsidiaries. The Company
will not, and will not permit any Material Subsidiary, to enter into any
agreement or understanding pursuant to

                                       50
<PAGE>   55

which (a) any non-equity interest claim the Company may have against any
Material Subsidiary would be subordinate in any manner to the payment of any
other obligation of such Material Subsidiary (other than waivers or
subordination of subrogation, contribution or similar rights under Guaranties
and similar agreements) or (b) by its terms limits or restricts the ability of
such Material Subsidiary to make funds available to the Company (whether by
dividend or other distribution, by replacement of any inter-company advance or
otherwise) if, in any such case referred to in this Section 5.4, there is, at
the time any such agreement is entered into, a reasonable likelihood that all
such agreements and understandings, considered together, would materially and
adversely affect the ability of the Company to meet its obligations as they
become due.

                                   ARTICLE VI

                                   GUARANTEES

                  SECTION VI.1 Guarantees. (a) Subject to the provisions of
Section 6.1(b), each Borrower hereby unconditionally and irrevocably guarantees
to the Administrative Agent, for the ratable benefit of the Lenders and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment by each other Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations owing by such other
Borrower.

                  (b) Anything in this Article VI to the contrary
notwithstanding, the maximum liability of each Borrower (other than a Borrower
which is guaranteeing the Obligations of its Subsidiaries) under this Article VI
shall in no event exceed the amount which can be guaranteed by such Borrowing
Subsidiary under applicable federal and state laws relating to the insolvency of
debtors.

                  (c) Each Borrower agrees that the Obligations owing by any
other Borrower may at any time and from time to time exceed the amount of the
liability of such other Borrower under this Article VI without impairing the
guarantee of such Borrower under this Article VI or affecting the rights and
remedies of the Administrative Agent or any Lender under this Article VI.

                  (d) No payment or payments made by any Borrower or any other
Person or received or collected by the Administrative Agent or any Lender from
any Borrower or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application, at any time or from time to time, in
reduction of or in payment of the Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of the Borrowers under this Article VI
which shall, notwithstanding any such payment or payments, continue until the
Obligations are paid in full and the Commitments are terminated.

                  (e) Each Borrower agrees that whenever, at any time, or from
time to time, it shall make any payment to the Administrative Agent or any
Lender on account of its liability

                                       51
<PAGE>   56

under this Article VI, it will notify the Administrative Agent in writing that
such payment is made under this Article VI for such purpose.

                  SECTION VI.2 No Subrogation. Notwithstanding any payment or
payments made by any Borrower under this Article VI or any set-off or
application of funds of such Borrower by the Administrative Agent or any Lender,
such Borrower shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Lender against any other Borrower or against any
collateral security or guarantee or right of offset held by the Administrative
Agent or any Lender for the payment of the Obligations, nor shall such Borrower
seek or be entitled to seek any contribution or reimbursement from any other
Borrower in respect of payments made by such Borrower hereunder, until all
amounts owing to the Administrative Agent and the Lenders by the other Borrowers
on account of the Obligations are paid in full and the Commitments are
terminated. If any amount shall be paid to any Borrower on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full, such amount shall be held by such Borrower in trust for the
Administrative Agent and the Lenders, segregated from other funds of such
Borrower, and shall, forthwith upon receipt by such Borrower, be turned over to
the Administrative Agent in the exact form received by such Borrower (duly
indorsed by such Borrower to the Administrative Agent, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
the Administrative Agent may determine.

                  SECTION VI.3 Amendments, etc. with respect to the Obligations;
Waiver of Rights. Each Borrower shall remain obligated under this Article VI
notwithstanding that, without any reservation of rights against such Borrower,
and without notice to or further assent by such Borrower, any demand for payment
of any of the Obligations made by the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender, and any of the Obligations
continued, and the Obligations, or the liability of any other party upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and this
Agreement, any Notes and any other documents executed and delivered in
connection herewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Administrative Agent (or the Majority Lenders, as the
case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any
Lender for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Administrative Agent nor any Lender shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Obligations or for this Agreement or any property
subject thereto. When making any demand hereunder against any Borrower, the
Administrative Agent or any Lender may, but shall be under no obligation to,
make a similar demand on the applicable Borrowing Subsidiaries or any other
guarantor, and any failure by the Administrative Agent or any Lender to make any
such demand or to collect any payments from the other Borrowers or any such
other guarantor or any release of the other Borrowers or such other guarantor
shall not relieve such Borrower of its obligations or liabilities hereunder, and
shall not impair or affect the rights and remedies, express or implied, or as a
matter of law, of the

                                       52
<PAGE>   57

Administrative Agent or any Lender against such Borrower for the purposes hereof
"demand" shall include the commencement and continuance of any legal
proceedings.

                  SECTION VI.4 Guarantee Absolute and Unconditional. Each
Borrower waives any and all notice of the creation, renewal, extension or
accrual of any of the Obligations and notice of or proof of reliance by the
Administrative Agent or any Lender upon this Agreement or acceptance of this
Agreement; the Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred, or renewed, extended, amended or
waived, in reliance upon this Agreement; and all dealings between any Borrower,
on the one hand, and the Administrative Agent and the Lenders, on the other,
shall likewise be conclusively presumed to have been had or consummated in
reliance upon this Agreement. Each Borrower waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
other Borrowers with respect to the Obligations. The guarantee contained in this
Article VI shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or
enforceability of this Agreement, any Note, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or any
Lender, (b) any defense, set-off or counterclaim (other than a defense of
payment or performance) which may at any time be available to or be asserted by
any Borrower against the Administrative Agent or any Lender, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of any Borrower)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of any Borrower for the Obligations, or of the Borrowers under this
Agreement, in bankruptcy or in any other instance. When pursuing its rights and
remedies hereunder against any Borrower, the Administrative Agent and any Lender
may, but shall be under no obligation to, pursue such rights and remedies as it
may have against any other Borrower or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset with
respect thereto, and any failure by the Administrative Agent or any Lender to
pursue such other rights or remedies or to collect any payments from other
Borrowers or any such other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of
any other Borrower or any such other Person or of any such collateral security,
guarantee or right of offset, shall not relieve any Borrower of any liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Administrative Agent or
any Lender against such Borrower. The guarantees contained in this Article VI
shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Borrower and its successors and assigns
thereof, and shall inure to the benefit of the Administrative Agent and the
Lenders, and their respective successors, indorsees, transferees and assigns,
until all the Obligations and the obligations of the Borrowers under this
Agreement shall have been satisfied by payment in full and the Commitments shall
be terminated, notwithstanding that from time to time during the term of this
Agreement the Borrowers may be free from any Obligations.

                  SECTION VI.5 Reinstatement. The provisions of this Article VI
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Obligations is rescinded or
must otherwise be restored or returned by the Administrative Agent or any Lender
upon the insolvency, bankruptcy, dissolution, liquidation or

                                       53
<PAGE>   58

reorganization of any Borrower or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, any
Borrower or any substantial part of its property, or otherwise, all as though
such payments had not been made.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

                  SECTION VII.1 Event of Default. If any of the following events
("Events of Default") shall occur and be continuing:

                  (a) Any Borrower shall fail to pay any installment of
         principal of any of its Advances or Notes when due, or any interest on
         any of its Advances or Notes or any other amount payable by it
         hereunder within five Business Days after the same shall be due; or

                  (b) Any representation or warranty made or deemed made by any
         Borrower herein or by any Borrower (or any of its officers) in
         connection with this Agreement shall prove to have been incorrect in
         any material respect when made or deemed made; or

                  (c) Any Borrower shall fail to perform or observe any other
         term, covenant or agreement contained in this Agreement on its part to
         be performed or observed and any such failure shall remain unremedied
         for 30 days after written notice thereof shall have been given to such
         Borrower by the Administrative Agent or by any Lender with a copy to
         the Administrative Agent; or

                  (d) The Company or any Principal Subsidiary shall fail to pay
         any Debt or Guaranty (excluding Debt incurred pursuant hereto) of the
         Company or such Principal Subsidiary in an aggregate principal amount
         of $200,000,000 or more, at such time, or any installment of principal
         thereof or interest or premium thereon, when due (whether by scheduled
         maturity, required prepayment, acceleration, demand or otherwise) and
         such failure shall continue after the applicable grace period, if any,
         specified in the agreement or instrument relating to such Debt or
         Guaranty; or any other default under any agreement or instrument
         relating to any such Debt, or any other event, shall occur and shall
         continue after the applicable grace period, if any, specified in such
         agreement or instrument, if the effect of such default or event is to
         accelerate the maturity of such Debt; or any such Debt shall be
         required to be prepaid (other than by a regularly scheduled required
         prepayment), prior to the stated maturity thereof, as a result of
         either (i) any default under any agreement or instrument relating to
         any such Debt or (ii) the occurrence of any other event (other than an
         issuance, sale or other disposition of stock or other assets, or an
         incurrence or issuance of Indebtedness or other obligations, giving
         rise to a repayment or prepayment obligation in respect of such Debt)
         the effect of which would otherwise be to accelerate the maturity of
         such Debt; provided that, notwithstanding any provision contained in
         this subsection (d) to the contrary, to the extent that pursuant to the
         terms of any agreement or instrument relating to any Debt or Guaranty
         referred to in this

                                       54
<PAGE>   59

         subsection (d) (or in the case of any such Guaranty, relating to any
         obligations Guaranteed thereby), any sale, pledge or disposal of Margin
         Stock, or utilization of the proceeds of such sale, pledge or disposal,
         would result in a breach of any covenant contained therein or otherwise
         give rise to a default or event of default thereunder and/or
         acceleration of the maturity of the Debt or obligations extended
         pursuant thereto, or payment pursuant to any Guaranty, and as a result
         of such terms or of such sale, pledge, disposal, utilization, breach,
         default, event of default or acceleration or nonpayment under such
         Guaranty, or the provisions thereof relating thereto, this Agreement or
         any Advance hereunder would otherwise be subject to the margin
         requirements or any other restriction under Regulation U issued by the
         Board of Governors of the Federal Reserve System, then such breach,
         default, event of default or acceleration, or nonpayment under any
         Guaranty, shall not constitute a default or Event of Default under this
         subsection (d); or

                  (e)(i) The Company or any Principal Subsidiary shall (A)
         generally not pay its debts as such debts become due; or (B) admit in
         writing its inability to pay its debts generally; or (C) make a general
         assignment for the benefit of creditors; or (ii) any proceeding shall
         be instituted or consented to by the Company or any Principal
         Subsidiary seeking to adjudicate it a bankrupt or insolvent, or seeking
         liquidation, winding up, reorganization, arrangement, adjustment,
         protection, relief, or composition of it or its debts under any law
         relating to bankruptcy, insolvency or reorganization or relief of
         debtors, or seeking the entry of an order for relief or the appointment
         of a receiver, trustee, or other similar official for it or for any
         substantial part of its property; or (iii) any such proceeding shall
         have been instituted against the Company or any Principal Subsidiary
         and either such proceeding shall not be stayed or dismissed for 60
         consecutive days or any of the actions referred to above sought in such
         proceeding (including the entry of an order for relief against it or
         the appointment of a receiver, trustee, custodian or other similar
         official for it or any substantial part of its property) shall occur;
         or (iv) the Company or any Principal Subsidiary shall take any
         corporate action to authorize any of the actions set forth above in
         this subsection (e); or

                  (f) Any judgment or order of any court for the payment of
         money in excess of $100,000,000 shall be rendered against the Company
         or any Principal Subsidiary and either (i) enforcement proceedings
         shall have been commenced and are continuing or have been completed by
         any creditor upon such judgment or order (other than any enforcement
         proceedings consisting of the mere obtaining and filing of a judgment
         lien or obtaining of a garnishment or similar order so long as no
         foreclosure, levy or similar process in respect of such lien, or
         payment over in respect of such garnishment or similar order, has
         commenced and is continuing or has been completed) or (ii) there shall
         be any period of 30 consecutive days during which a stay of execution
         or of enforcement proceedings (other than those referred to in the
         parenthesis in clause (i) above) in respect of such judgment or order,
         by reason of a pending appeal, bonding or otherwise, shall not be in
         effect; or

                  (g) (i) Any Termination Event with respect to a Plan shall
         have occurred and, 30 days after notice thereof shall have been given
         to the Company by the Administrative

                                       55
<PAGE>   60

         Agent, such Termination Event shall still exist; or (ii) the Company or
         any ERISA Affiliate shall have been notified by the sponsor of a
         Multiemployer Plan that it has incurred Withdrawal Liability to such
         Multiemployer Plan; or (iii) the Company or any ERISA Affiliate shall
         have been notified by the sponsor of a Multiemployer Plan that such
         Multiemployer Plan is in reorganization, or is insolvent or is being
         terminated, within the meaning of Title IV of ERISA; or (iv) any Person
         shall engage in a "prohibited transaction" (as defined in Section 406
         of ERISA or Section 4975 of the Code) involving any Plan; and in each
         case in clauses (i) through (iv) above, such event or condition,
         together with all other such events or conditions, if any, would result
         in an aggregate liability of the Company or any ERISA Affiliate that
         would exceed 10% of Net Worth; or

                  (h) Upon completion of, and pursuant to, a transaction, or a
         series of transactions (which may include prior acquisitions of capital
         stock of the Company in the open market or otherwise), involving a
         tender offer (i) a "person" (within the meaning of Section 13(d) of the
         Securities Exchange Act of 1934) other than the Company or a Subsidiary
         of the Company or any employee benefit plan maintained for employees of
         the Company and/or any of its Subsidiaries or the trustee therefor,
         shall have acquired direct or indirect ownership of and paid for in
         excess of 50% of the outstanding capital stock of the Company entitled
         to vote in elections for directors of the Company and (ii) at any time
         before the later of (A) six months after the completion of such tender
         offer and (B) the next annual meeting of the shareholders of the
         Company following the completion of such tender offer more than half of
         the directors of the Company consists of individuals who (1) were not
         directors before the completion of such tender offer and (2) were not
         appointed, elected or nominated by the Board of Directors in office
         prior to the completion of such tender offer (other than any such
         appointment, election or nomination required or agreed to in connection
         with, or as a result of, the completion of such tender offer); or

                  (i) Any event of default shall occur under any agreement or
         instrument relating to or evidencing any Debt now or hereafter existing
         of the Company or any Principal Subsidiary as the result of any change
         of control of the Company; or

                  (j) Any of the Guarantees contained in Article VI shall cease,
         for any reason, to be in full force and effect or any Borrower shall so
         assert; provided that if, within one Business Day after any Borrower
         receives notice from the Administrative Agent or otherwise becomes
         aware that such Guarantee is not in full force and effect, the Company
         delivers written notice to the Administrative Agent that the applicable
         Borrower intends to deliver a valid and effective Guarantee, or to
         reinstate such Guarantee, as soon as possible, then an Event of Default
         shall not exist pursuant this Section 7.1(j) unless the Company shall
         fail to deliver or reinstate or cause to be delivered or reinstated a
         Guarantee of the applicable Borrower having the same economic effect as
         the Guarantee set forth in Article VI within four Business Days after
         the delivery of such written notice of intent;

then, and in any such event, the Administrative Agent shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Company, (i)
declare the obligation of each

                                       56
<PAGE>   61

Lender to make Advances to be terminated, whereupon the same shall forthwith
terminate, and (ii) declare the Advances and the Notes, all interest thereon and
all other amounts payable under this Agreement to be forthwith due and payable,
whereupon the Advances and the Notes, all such interest and all such amounts
shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Borrowers; provided, however, that if an Event of Default under
subsection (e) of this Section 7.1 (except under clause (i)(A) thereof) shall
occur, (A) the obligation of each Lender to make Advances shall automatically be
terminated and (B) the Advances and the Notes, all interest thereon and all
other amounts payable under this Agreement shall automatically become and be
forthwith due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrowers.

                                  ARTICLE VIII

               THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT

                  SECTION VIII.1 Authorization and Action. Each Lender hereby
appoints and authorizes the Administrative Agent and the CAF Advance Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent and the CAF Advance Agent
by the terms hereof, together with such powers as are reasonably incidental
thereto. As to any matters not expressly provided for by this Agreement
(including enforcement of this Agreement or collection of the Notes), the
Administrative Agent and the CAF Advance Agent shall not be required to exercise
any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from
acting) upon the instructions of the Majority Lenders, and such instructions
shall be binding upon all Lenders and all holders of Notes; provided, however,
that the Administrative Agent and the CAF Advance Agent shall not be required to
take any action which exposes the Administrative Agent or the CAF Advance Agent
to personal liability or which is contrary to this Agreement or applicable law.
The Administrative Agent and the CAF Advance Agent agree to give to each Lender
prompt notice of each notice given to it by any Borrower pursuant to the terms
of this Agreement.

                  SECTION VIII.2 Administrative Agent's and CAF Advance Agent's
Reliance, Etc. None of the Administrative Agent, the CAF Advance Agent or any of
its respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent and the CAF Advance Agent: (i) may treat the payee of any
Note as the holder thereof until the Administrative Agent receives and accepts
an Assignment and Acceptance entered into by the Lender which is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 9.7; (ii) may consult with legal counsel (including counsel for the
Company), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts; (iii)
makes no warranty or

                                       57
<PAGE>   62

representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrowers or to inspect the
property (including the books and records) of the Borrowers; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telegram,
telecopier, cable or telex) believed by it to be genuine and signed or sent by
the proper party or parties.

                  SECTION VIII.3 Chase and Affiliates. With respect to its
Commitment, the Advances made by it and the Note issued to it, Chase shall have
the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not the Administrative Agent or the CAF
Advance Agent; and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated, include Chase in its individual capacity. Chase and its
affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, the Company,
any of its Subsidiaries and any Person who may do business with or own
securities of the Company or any of its Subsidiaries, all as if Chase were not
the Administrative Agent or the CAF Advance Agent and without any duty to
account therefor to the other Lenders.

                  SECTION VIII.4 Lender Credit Decision. Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent, the CAF Advance Agent or any other Lender and based on the
financial statements referred to in Section 4.1 and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent, the CAF
Advance Agent or any other Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement.

                  SECTION VIII.5 Indemnification. The Lenders agree to indemnify
the Administrative Agent and the CAF Advance Agent (to the extent not reimbursed
by the Borrowers), ratably according to the respective principal amounts of the
Advances then outstanding by each of them (or if no Advances are at the time
outstanding or if any Notes are held by Persons which are not Lenders, ratably
according to the respective amounts of their aggregate Commitments), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against the
Administrative Agent or the CAF Advance Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Administrative Agent
or the CAF Advance Agent under this Agreement, provided that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the Administrative Agent's or the CAF Advance Agent's gross negligence or
willful misconduct.

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<PAGE>   63

Without limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent and the CAF Advance Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including reasonable counsel fees)
incurred by the Administrative Agent or the CAF Advance Agent in connection with
the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings, in bankruptcy or
insolvency proceedings, or otherwise) of, or legal advice in respect of rights
or responsibilities under, this Agreement, to the extent that the Administrative
Agent or the CAF Advance Agent is not reimbursed for such expenses by the
Borrowers.

                  SECTION VIII.6 Successor Administrative Agent and CAF Advance
Agent. The Administrative Agent and the CAF Advance Agent may resign at any time
by giving written notice thereof to the Lenders and the Company and may be
removed at any time with or without cause by the Majority Lenders. Upon any such
resignation or removal, the Majority Lenders shall have the right to appoint a
successor Administrative Agent or the CAF Advance Agent. If no successor
Administrative Agent or CAF Advance Agent shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent's or the CAF Advance Agent"s giving of notice
of resignation or the Majority Lenders' removal of the retiring Administrative
Agent or CAF Advance Agent, then such retiring Administrative Agent or CAF
Advance Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent or CAF Advance Agent, which shall be a Lender and a commercial bank
organized, or authorized to conduct a banking business, under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Administrative Agent or CAF Advance Agent hereunder by a successor
Administrative Agent or CAF Advance Agent, such successor Administrative Agent
or CAF Advance Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent or
CAF Advance Agent, and the retiring Administrative Agent or CAF Advance Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Administrative Agent's or CAF Advance Agent's resignation or
removal hereunder as Administrative Agent or CAF Advance Agent, the provisions
of this Article VII shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent or CAF Advance Agent
under this Agreement.

                  SECTION 8.7. Syndication Agent; Co-Documentation Agents. None
of the Lenders identified on the cover page or signature pages or in the
preamble of this Agreement as a "syndication agent" or "co-documentation agent"
shall have any right, power, obligation, liability, responsibility or duty under
this Agreement other than those applicable to all Lenders as such. Without
limiting the foregoing, none of the Lenders so identified as a "syndication
agent" or "co-documentation agent" shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on any of the Lenders so identified in deciding to enter into
this Agreement or in taking or not taking action hereunder.

                                       59
<PAGE>   64

                                   ARTICLE IX

                                  MISCELLANEOUS

                  SECTION IX.1 Amendments, Etc. An amendment or waiver of any
provision of this Agreement or the Notes, or a consent to any departure by any
Borrower therefrom, shall be effective against the Lenders and all holders of
the Notes if, but only if, it shall be in writing and signed or consented to in
writing by the Majority Lenders, and then such a 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,
unless in writing and signed by all the Lenders, be effective to: (a) waive any
of the conditions specified in Article III, (b) except as contemplated by
Sections 2.4, 2.5, 2.23 and 2.25, increase or extend the Commitments of the
Lenders or subject the Lenders to any additional obligations, (c) reduce the
principal of, or interest on, any Advance or the Notes or any facility fees
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, any Advance or the Notes or any facility fees hereunder, (e) change
the percentage of the Commitments or of the aggregate unpaid principal amount of
any Advance or the Notes, or the number of Lenders, which shall be required for
the Lenders or any of them to take any action under this Agreement, (f) amend
this Section 9.1, (g) amend, waive or consent to any departure of any provision
in Article VI or (h) except as provided below, release any Borrower from its
guarantee in Article VI; provided, further, that no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent and the CAF
Advance Agent in addition to the Lenders required hereinabove to take such
action, affect the rights or duties of the Administrative Agent or the CAF
Advance Agent under this Agreement or any Note; provided, still further, that
the guarantee of a Borrower under Article VI shall be released automatically
upon (i) the sale by the Company of such Borrower, provided that such sale is
permitted under this Agreement, or (ii) such Borrower ceasing to be a Borrower
(it being understood that the Company and EPNGC shall never cease to be a
Borrower hereunder).

                  SECTION IX.2 Notices, Etc. Except as otherwise provided in
Section 2.2(a), 2.5(d) or 2.15(b), all notices and other communications provided
for hereunder shall be in writing (including telecopier and other readable
communication) and mailed by certified mail, return receipt requested,
telecopied or otherwise transmitted or delivered, if to any Borrower, c/o the
Company at El Paso Energy Building, 1001 Louisiana Street, Houston, Texas 77002,
Attention: Executive Vice President and Chief Financial Officer, Telecopier:
(713) 420-4975; if to any Lender, at its address set forth under its name on
Schedule I; if to the Administrative Agent, at 270 Park Avenue, 21st floor, New
York, New York 10017, Attention: Steve Wood, Telecopier: (212) 270-2519,
Telephone: (212) 270-7056; and if to the CAF Advance Agent, at One Chase
Manhattan Plaza, 8th Floor, New York, New York 10081, Attention: Jackie Reid,
Telecopier: (212) 552-5777, Telephone: (212) 552-7683; or, as to each party and
each Borrowing Subsidiary, at such other address as shall be designated by such
party in a written notice to the other parties. All such notices and
communications shall, if so mailed, telecopied or otherwise transmitted, be
effective when received, if mailed, or when the appropriate answerback or other
evidence of receipt is given, if telecopied or otherwise transmitted,
respectively. A notice received by the Administrative Agent, the CAF Advance
Agent or a Lender by telephone pursuant to Section 2.2(a), 2.5(d) or 2.15(a)
shall be effective if the Administrative Agent or Lender believes in good faith
that it was given by an authorized representative of the applicable

                                       60
<PAGE>   65

Borrower and acts pursuant thereto, notwithstanding the absence of written
confirmation or any contradictory provision thereof.

                  SECTION IX.3 No Waiver; Remedies. No failure on the part of
any Lender, the Administrative Agent or the CAF Advance Agent to exercise, and
no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
or under any Note preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

                  SECTION IX.4 Costs and Expenses; Indemnity. (a) Each Borrower
agrees to pay on demand (to the extent not reimbursed by any other Borrower) (i)
all reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent in connection with the preparation, execution and delivery of this
Agreement, the Notes and the other documents to be delivered hereunder and the
fulfillment or attempted fulfillment of conditions precedent hereunder, (ii) all
reasonable costs and expenses incurred by the Administrative Agent and its
Affiliates in initially syndicating all or any portion of the Commitments
hereunder, including the related reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent or its Affiliates, travel expenses,
duplication and printing costs and courier and postage fees, and excluding any
syndication fees paid to other parties joining the syndicate and (iii) all
out-of-pocket costs and expenses, if any, incurred by the Administrative Agent,
the CAF Advance Agent and the Lenders in connection with the enforcement
(whether through negotiations, legal proceedings in bankruptcy or insolvency
proceedings, or otherwise) of this Agreement, the Notes and the other documents
to be delivered hereunder and thereunder, including the reasonable fees and
out-of-pocket expenses of counsel.

                  (b) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance or CAF Advance is made by any Borrower to or for the
account of a Lender on any day other than the last day of the Interest Period
for such Advance, as a result of a prepayment pursuant to Section 2.15 or a
Conversion pursuant to Section 2.13(f) or Section 2.14 or due to acceleration of
the maturity of the Advances and the Notes pursuant to Section 7.1 or due to any
other reason attributable to such Borrower, or if any Borrower shall fail to
make a borrowing of Eurodollar Rate Advances or CAF Advances after such Borrower
has given a notice requesting the same in accordance with the provisions of this
Agreement, such Borrower shall, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses which it may reasonably incur as a result
of such payment, Conversion or failure to borrow, including any loss (excluding
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender to
fund or maintain such Advance.

                  (c) Each Borrower agrees to indemnify and hold harmless the
Administrative Agent, the CAF Advance Agent and each Lender (to the extent not
reimbursed by any other Borrower) from and against any and all claims, damages,
liabilities and expenses (including fees and disbursements of counsel) which may
be incurred by or asserted against the Administrative

                                       61
<PAGE>   66

Agent, the CAF Advance Agent or such Lender in connection with or arising out of
any investigation, litigation, or proceeding (whether or not the Administrative
Agent, the CAF Advance Agent or such Lender is party thereto) related to any
acquisition or proposed acquisition by the Company, or by any Subsidiary of the
Company, of all or any portion of the stock or substantially all the assets of
any Person or any use or proposed use of the Advances by any Borrower (excluding
any claims, damages, liabilities or expenses incurred by reason of the gross
negligence or willful misconduct of the party to be indemnified or its employees
or agents, or by reason of any use or disclosure of information relating to any
such acquisition or use or proposed use of the proceeds by the party to be
indemnified or its employees or agents).

                  SECTION IX.5 Right of Set-Off. Upon the declaration of the
Advances and the Notes as due and payable pursuant to the provisions of Section
7.1, each Lender is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender to or for the credit or the
account of the applicable Borrower against any and all of the obligations of
such Borrower now or hereafter existing under this Agreement and the Notes of
such Borrower held by such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement or such Notes and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Company
after any such set-off and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section 9.5 are in addition to
other rights and remedies (including other rights of set-off) which such Lender
may have.

                  SECTION IX.6 Binding Effect. This Agreement shall become
effective in accordance with the provisions of Section 3.1, and thereafter shall
be binding upon and inure to the benefit of the Borrowers, the Administrative
Agent, the CAF Advance Agent and each Lender and their respective successors and
assigns, except that no Borrower shall have the right to assign its rights or
obligations hereunder or any interest herein in a transaction not permitted by
Section 5.2(e) without the prior written consent of all of the Lenders.

                  SECTION IX.7 Assignments and Participations. (a) Each Lender
may assign to one or more banks or other financial institutions all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment, the Advances owing to it and the Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a
varying, percentage of all such Lender"s rights and obligations under this
Agreement, (ii) the amount of the Commitment of the assigning Lender being
assigned to an assignee pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $15,000,000 (or, if less, the entire Commitment of the
assigning Lender) and shall be an integral multiple of $1,000,000, (iii) each
such assignment shall be to an Eligible Assignee, and (iv) the parties to each
such assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Notes subject to such assignment and a processing and recordation fee
of $2,500, and shall send to the Company an executed counterpart of such
Assignment and Acceptance. Upon such execution, delivery, acceptance and

                                       62
<PAGE>   67

recording, from and after the effective date specified in each Assignment and
Acceptance, (A) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) the assigning Lender thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

                  (b) By executing and delivering an Assignment and Acceptance,
each Lender assignor thereunder and the assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of each Borrower or the performance or observance by each Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.1 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, the CAF Advance Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is (subject to approval in writing by the Company and, if applicable,
the Administrative Agent to the extent required by the definition of "Eligible
Assignee") an Eligible Assignee; (vi) such assignee appoints and authorizes the
Administrative Agent and the CAF Advance Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent and the CAF Advance Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; and (vii) such assignee
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.

                  (c) The Administrative Agent shall maintain at its address
referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to
and accepted by it and a register (which register may be in electronic form) for
the recordation of the names and addresses of the Lenders and the Commitment of,
and principal amount of the Advances owing to, each Lender from time to time
(the "Register"). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and each Borrower, the Administrative
Agent, the CAF Advance Agent and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be

                                       63
<PAGE>   68

available for inspection by any Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice. Upon the acceptance of any
Assignment and Acceptance for recordation in the Register, Schedule I hereto
shall be deemed to be amended to reflect the revised Commitments of the Lenders
parties to such Assignment and Acceptance as well as administrative information
with respect to any new Lender as such information is recorded in the Register.

                  (d) Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and as assignee representing that it is an Eligible
Assignee, together with any Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit G hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company. Within five Business Days after
its receipt of such notice and its receipt of an executed counterpart of such
Assignment and Acceptance, the Borrowers, at their own expense, shall execute
and deliver to the Administrative Agent in exchange for the surrendered Notes,
if any, new Notes to the order of such Eligible Assignee, if requested, in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Acceptance and, if the assigning Lender has retained a Commitment hereunder, new
Notes, if requested, to the order of the assigning Lender in an amount equal to
the Commitment retained by it hereunder. Such new Notes, if any, shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Notes, if any, shall be dated (A) in the case of Notes made by the
Company, EPNGC and Tennessee the Closing Date and (B) in the case of Notes made
by any other Borrower, the date such other Borrower executes and delivers its
Joinder Agreement, and shall otherwise be in substantially the form of Exhibit
A.

                  (e) Each Lender may sell participations to one or more banks
or other entities in or to all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment, and the Advances
owing to it and the Notes held by it); provided, however, that (i) such Lender's
obligations under this Agreement (including its Commitment to the Borrowers
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Notes for all purposes of
this Agreement, (iv) the Borrowers, the Administrative Agent, the CAF Advance
Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement, (v) such Lender shall continue to be able to agree to any
modification or amendment of this Agreement or any waiver hereunder without the
consent, approval or vote of any such participant or group of participants,
other than modifications, amendments and waivers which (A) postpone any date
fixed for any payment of, or reduce any payment of, principal of or interest on
such Lender's Advances or Notes or any facility fees payable under this
Agreement, or (B) increase the amount of such Lender's Commitment in a manner
which would have the effect of increasing the amount of a participant's
participation, or (C) reduce the interest rate payable under this Agreement and
such Lender's Notes, or (D) consent to the assignment or the transfer by any
Borrower of any of its rights and obligations under the Agreement, and (vi)
except as contemplated by the immediately preceding clause (v), no participant
shall be deemed to be or to have any of the rights or obligations of a "Lender"
hereunder.

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<PAGE>   69

                  (f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.7, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrowers furnished to such Lender
by or on behalf of the Borrowers; provided that, prior to any such disclosure,
the assignee or participant or proposed assignee or participant shall agree in
writing for the benefit of the Borrowers to preserve the confidentiality of any
confidential information relating to the Borrowers received by it from such
Lender in a manner consistent with Section 9.8.

                  (g) Anything in this Agreement to the contrary
notwithstanding, any Lender may at any time create a security interest in all or
any portion of its rights under this Agreement (including the Advances owing to
it) and the Notes issued to it hereunder in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System (or any successor regulation) and the applicable operating circular of
such Federal Reserve Bank.

                  SECTION IX.8 Confidentiality. Each Lender, the Administrative
Agent and the CAF Advance Agent (each, a "Party") agrees that it will use its
best efforts not to disclose, without the prior consent of the Company (other
than to its, or its Affiliate's, employees, auditors, accountants, counsel or
other representatives, whether existing at the date of this Agreement or any
subsequent time), any information with respect to the Borrowers which is
furnished pursuant to this Agreement, provided that any Party may disclose any
such information (i) as has become generally available to the public, (ii) as
may be required or appropriate in any report, statement or testimony submitted
to any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such party or to the Board of Governors of the Federal Reserve
System or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (iii) as may be
required or appropriate in response to any summons or subpoena or in connection
with any litigation or regulatory proceeding, (iv) in order to comply with any
law, order, regulation or ruling applicable to such party, or (v) to any
prospective assignee or participant in connection with any contemplated
assignment of any rights or obligations hereunder, or any sale of any
participation therein, by such Party pursuant to Section 9.7, if such
prospective assignee or participant, as the case may be, executes an agreement
with the Company containing provisions substantially similar to those contained
in this Section 9.8; provided, however, that the Company acknowledges that the
Administrative Agent has disclosed and may continue to disclose such information
as the Administrative Agent in its sole discretion determines is appropriate to
the Lenders from time to time.

                  SECTION IX.9 Consent to Jurisdiction. (a) Each Borrower hereby
irrevocably submits to the jurisdiction of any New York State or Federal court
sitting in New York City and any appellate court from any thereof in any action
or proceeding by the Administrative Agent, the CAF Advance Agent, any Lender or
the holder of any Note in respect of, but only in respect of, any claims or
causes of action arising out of or relating to this Agreement or the Notes (such
claims and causes of action, collectively, being "Permitted Claims"), and each
Borrower hereby irrevocably agrees that all Permitted Claims may be heard and
determined in such New York

                                       65
<PAGE>   70

State court or in such Federal court. Each Borrower hereby irrevocably waives,
to the fullest extent it may effectively do so, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any aforementioned
court in respect of Permitted Claims. Each Borrower hereby irrevocably appoints
CT Corporation System (the "Process Agent"), with an office on the date hereof
at 1633 Broadway, New York, New York 10019, as its agent to receive on behalf of
such Borrower and its property service of copies of the summons and complaint
and any other process which may be served by the Administrative Agent, any
Lender or the holder of any Note in any such action or proceeding in any
aforementioned court in respect of Permitted Claims. Such service may be made by
delivering a copy of such process to the Company by courier and by certified
mail (return receipt requested), fees and postage prepaid, both (i) in care of
the Process Agent at the Process Agent's above address and (ii) at the Company's
address specified pursuant to Section 9.2, and each Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf.
Each Borrower 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.

                  (b) Nothing in this Section 9.9 (i) shall affect the right of
any Lender, the holder of any Note or the Administrative Agent or the CAF
Advance Agent to serve legal process in any other manner permitted by law or
affect any right otherwise existing of any Lender, the holder of any Note or the
Administrative Agent or the CAF Advance Agent to bring any action or proceeding
against any Borrower or its property in the courts of other jurisdictions or
(ii) shall be deemed to be a general consent to jurisdiction in any particular
court or a general waiver of any defense or a consent to jurisdiction of the
courts expressly referred to in subsection (a) above in any action or proceeding
in respect of any claim or cause of action other than Permitted Claims.

                  SECTION IX.10 GOVERNING LAW. THIS AGREEMENT AND THE NOTES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

                  SECTION IX.11 Rate of Interest. It is the intention of the
parties hereto that each Lender shall each conform strictly to usury laws
applicable to it. Accordingly, if the transactions contemplated hereby would be
usurious as to any Lender under laws applicable to it, then, in that event,
notwithstanding anything to the contrary in this Agreement or in the Notes to
the order of such Lender, it is agreed as follows: (a) the aggregate of all
consideration which constitutes interest under law applicable to such Lender
that is contracted for, taken, reserved, charged or received by such Lender
hereunder, or under such Notes or otherwise, shall under no circumstances exceed
the maximum amount allowed by such applicable law, and any excess shall be
credited by such Lender on the principal amount of the sums owed to such Lender
(or, if all amounts owing to such Lender shall have been paid in full, refunded
by such Lender to the applicable Borrower); or (b) in the event that a
prepayment of any Advances owed to any Lender is required, then such
consideration that constitutes interest under law applicable to such Lender may
never include more than the maximum amount allowed by such applicable law, and
excess interest, if any, provided for shall be cancelled automatically by such
Lender as of the date of such prepayment and, if theretofore paid, shall be
credited by such Lender on the principal amount of such prepayment obligation
(or, if the principal amount of such prepayment obligation

                                       66
<PAGE>   71

shall have been paid in full, refunded by such Lender to the applicable
Borrower). To the extent that Article 5069-1.0001 of the Texas Revised Civil
Statutes is relevant to any Lender for the purpose of determining the maximum
amount of interest allowed by applicable law, such Lender hereby elects to
determine the applicable rate ceiling under such Article by the indicated
(weekly) rate ceiling from time to time in effect, subject to such Lender's
right subsequently to change such method in accordance with applicable law. In
no event, however, shall Chapter 346 of the Texas Finance Code apply to this
Agreement or the Notes or the transactions contemplated hereby.

                  SECTION IX.12 Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery to the Administrative Agent of a counterpart executed by a
Lender shall constitute delivery of such counterpart to all of the Lenders. This
Agreement may be delivered by facsimile transmission of the relevant signature
pages hereof.

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<PAGE>   72

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

                               EL PASO ENERGY CORPORATION

                               By: /s/ C. Dana Rice
                                   --------------------------------------
                               Title: Senior Vice President and Treasurer

                               EL PASO NATURAL GAS COMPANY

                               By: /s/ C. Dana Rice
                                   --------------------------------------
                               Title: Senior Vice President and Treasurer

                               TENNESSEE GAS PIPELINE COMPANY

                               By: /s/ C. Dana Rice
                                   --------------------------------------
                               Title: Senior Vice President and Treasurer

                               THE CHASE MANHATTAN BANK, as
                               Administrative Agent, CAF Advance
                               Agent and a Lender

                               By: /s/ Steven Wood
                                   --------------------------------------
                               Title: Vice President

                               CITIBANK, N.A., as Co-Documentation
                               Agent and a Lender

                               By: /s/ J. Christopher Lyons
                                   --------------------------------------
                               Title: Attorney-in-Fact

<PAGE>   73

                               ABN AMRO BANK, N.V., as Co-Documentation
                               Agent and a Lender

                               By: /s/ Michael Nepveux
                                   --------------------------------------
                               Title: Group Vice President

                               By: /s/ Dana L. Montgomery
                                   --------------------------------------
                               Title: Assistant Vice President

                               BANK OF AMERICA, N.A., as Syndication
                               Agent and a Lender

                               By: /s/ Patrick M. Delaney
                                   --------------------------------------
                               Title: Managing Director

                               BANCA DI ROMA- CHICAGO BRANCH, as a Lender

                               By: /s/ Aurora Pensa
                                   --------------------------------------
                               Title: Vice President

                               By: /s/ Enrico Verdoscia
                                   --------------------------------------
                               Title: Senior Vice President

                               THE BANK OF TOKYO-MITSUBISHI,
                               LTD HOUSTON AGENCY, as a Lender

                               By: /s/ Michael G. Meiss
                                   --------------------------------------
                               Title: Vice President

<PAGE>   74

                               BNP PARIBAS, as a Lender

                               By: /s/ Bart Schouest
                                   --------------------------------------
                               Title: Managing Director

                               By: /s/ John H. Roberts
                                   --------------------------------------
                               Title: Vice President

                               BAYERISCHE LANDESBANK GIROZENTRALE,
                               CAYMAN ISLANDS BRANCH, as a Lender

                               By: /s/ Hereward Drummond
                                   --------------------------------------
                               Title: Senior Vice President

                               By: /s/ James Fox
                                   --------------------------------------
                               Title: Vice President

                               COMMERZBANK AG, NEW YORK AND
                               GRAND CAYMAN BRANCHES, as a Lender

                               By: /s/ Harry P. Yergey
                                   --------------------------------------
                               Title: Senior Vice President & Manager

                               By: /s/ W. David Suttles
                                   --------------------------------------
                               Title: Vice President

                               CREDIT SUISSE FIRST BOSTON, as a Lender

                               By: /s/ David L. Sawyer
                                   --------------------------------------
                               Title: Vice President

                               By: /s/ Lalita Advani
                                   --------------------------------------
                               Title: Assistant Vice President

<PAGE>   75

                               DEUTSCHE BANK AG NEW YORK AND/OR
                               CAYMAN ISLANDS BRANCHES, as a Lender

                               By: /s/ Joel Makowsky
                                   --------------------------------------
                               Title: Vice President

                               By: /s/ Michael E. Keating
                                   --------------------------------------
                               Title: Managing Director

                               BAYERISCHE HYPO- UND VEREINSBANK AG,
                               NEW YORK BRANCH, as a Lender

                               By: /s/ Steven Atwell
                                   --------------------------------------
                               Title: Director

                               By: /s/ Shannon Batchman
                                   --------------------------------------
                                Title: Director

                               THE INDUSTRIAL BANK OF JAPAN TRUST
                               COMPANY, as a Lender

                               By: /s/ Michael N. Oakes
                                   --------------------------------------
                               Title: Senior Vice President

                               The Industrial Bank of Japan, Limited, Houston
                               Office (Authorized Representative)

                               KBC BANK N.V., as a Lender

                               By: /s/ Jean-Pierre Diels
                                   --------------------------------------
                               Title: First Vice President

                               By: /s/ Patrick A. Janssens
                                   --------------------------------------
                               Title: Vice President

<PAGE>   76

                               NATIONAL WESTMINISTER BANK PLC, NEW
                               YORK BRANCH, as a Lender

                               By: /s/ Kevin Howard
                                   ---------------------------------------------
                               Title: Executive Vice President

                               NATIONAL WESTMINISTER BANK PLC,
                               NASSAU BRANCH, as a Lender

                               By: /s/ Kevin Howard
                                   ---------------------------------------------
                               Title: Executive Vice President

                               SOCIETE GENERALE, as a Lender

                               By: /s/ Paul E. Cornell
                                   ---------------------------------------------
                               Title: Managing Director

                               THE FUJI BANK, LIMITED, as a Lender

                               By: /s/ Toru Maeda
                                   ---------------------------------------------
                               Title: Executive Vice President and
                                      General Manager

                               AUSTRALIA & NEW ZEALAND BANKING
                               GROUP LIMITED, as a Lender

                               By: /s/ R. Scott McInnis
                                   ---------------------------------------------
                               Title: Head of Structured Finance & Relationship
                               Management-Americas

<PAGE>   77

THE BANK OF NEW YORK, as a Lender

By: /s/ Peter Keller
    ----------------------------------------
Title: Vice President

THE BANK OF NOVA SCOTIA, as a Lender

By: /s/ F.C.H. Ashby
    ----------------------------------------
Title: Senior Manager Loan Operations

BANK ONE, NA (CHICAGO), as a Lender

By: /s/ Helen Carr
    ----------------------------------------
Title: First Vice President

BARCLAYS BANK, as a Lender

By: /s/ Nicholas A. Bell
    ----------------------------------------
Title: Director, Loan Transaction Management

CREDIT AGRICOLE INDOSUEZ, as a Lender

By: /s/ Patrick Cocquerer
    ----------------------------------------
Title: FVP, Managing Director

By: /s/ Michael D. Willis
    ----------------------------------------
Title: VP, Credit Analysis

<PAGE>   78

                               CREDIT LYONNAIS, as a Lender

                               By: /s/ Pascal Poupelle
                                  ------------------------------------------
                               Title: President and Chief Operating Officer

                               THE DAI-ICHI KANGYO BANK, LTD., as a Lender

                               By: /s/ Katsuya Noto
                                  ------------------------------------------
                               Title: Vice President

                               DLJ CAPITAL FUNDING, INC., as a Lender

                               By: /s/ Richard N. Beaudoin
                                  ------------------------------------------
                               Title: Senior Vice President

                               FIRST UNION NATIONAL BANK, as a Lender

                               By: /s/ Robert R. Wetteroff
                                  ------------------------------------------
                               Title: Senior Vice President

                               FLEET NATIONAL BANK, as a Lender

                              By: /s/ Christopher Holmgren
                                 -------------------------------------------
                              Title: Director

                              MORGAN GUARANTY TRUST COMPANY OF
                              NEW YORK, as a Lender

                              By: /s/ Dennis R. Wilczek
                                 -------------------------------------------
                              Title: Associate

<PAGE>   79

                              MELLON BANK, N.A., as a Lender

                              By: /s/ Roger E. Howard
                                 -------------------------------------------
                              Title: Vice President

                              NATIONAL AUSTRALIA BANK LTD., as a Lender

                              By: /s/ Paul R. Morrison
                                -------------------------------------------
                              Title: Vice President

                              THE NORINCHUKIN BANK, NEW YORK
                              BRANCH,  as a Lender

                              By: /s/ Toshiyuki Futaoka
                                 -------------------------------------------
                              Title: Joint General Manager

                              SUMITOMO BANK LTD., as a Lender

                              By: /s/ C. Michael Garrido
                                 -------------------------------------------
                              Title: Senior Vice President

                              SUNTRUST BANKS, INC., as a Lender

                              By: /s/ Joseph M. McCreary
                                 -------------------------------------------
                              Title: Assistant Vice President

                              TORONTO DOMINION (TEXAS), INC., as
                              a Lender

                              By: /s/ Carolyn R. Faeth
                                 -------------------------------------------
                              Title: Vice President

<PAGE>   80

                              WELLS FARGO BANK, as a Lender

                              By: /s/ John Lane
                                 -------------------------------------------
                              Title: Vice-President

                              WESTDEUTSCHE LANDESBANK
                              GIROZENTRALE, as a Lender

                              By: /s/ Duncan M. Robertson
                                 -------------------------------------------
                              Title: Director

                              By: /s/ Thomas Lee
                                 -------------------------------------------
                              Title: Associate

                              DRESDNER BANK AG, NEW YORK AND
                              GRAND CAYMAN BRANCHES, as a Lender

                              By: /s/ Kirk Edelman
                                 -------------------------------------------
                              Title: First Vice President

                              By: /s/ Andrew Schroeder
                                 -------------------------------------------
                              Title: Vice President

                              BANCO BILBAO VIZCAYA ARGENTARIA, as a Lender

                              By: /s/ Manuel Sanchez
                                 -------------------------------------------
                              Title: Senior Vice President

                              By: /s/ Alberto Conde
                                 -------------------------------------------
                              Title: Vice President

<PAGE>   81

                                                                      SCHEDULE I

                          COMMITMENTS, ADDRESSES, ETC.

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  -------------------
<S>                                                         <C>
The Chase Manhattan Bank                                     $120,000,000.00
270 Park Avenue
New York, NY 10017
Attention: Steve Wood
Telephone: 212-270-7056
Telecopier: 212-270-2519

Citibank, N.A.                                               $ 93,333,333.33
1200 Smith Street, Suite 2000
Houston, TX 77002
Attention: Carol Rooney
Telephone: 713-654-3590
Telecopier: 713-654-2899

ABN AMRO Bank, N.V.                                          $ 93,333,333.33
208 South LaSalle, Suite 1500
Chicago, IL 60604-1003
Attention: Credit Administration
Telephone: 312-992-5110
Telecopier: 312-992-5111

Bank of America, N.A.                                        $ 93,333,333.33
333 Clay Street, Suite 4550
Houston, TX 77002
Attention: Patrick Delaney
Telephone: 713-651-4929
Telecopier: 713-651-4808

Banca di Roma- Chicago Branch                                $ 26,666,666.67
225 West Washington, Suite 1200
Chicago, IL 60606
Attention: Aurora Pensa
Telephone: 312-704-2630
Telecopier: 312-726-3058
</TABLE>

<PAGE>   82

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
The Bank of Tokyo-Mitsubishi, Ltd Houston Agency             $40,000,000.00
1100 Louisiana Street, Suite 2800
Houston, TX 77002-5216
Attention: John M. McIntyre
Telephone: 713-655-3845
Telecopier: 713-655-3855

BNP Paribas                                                  $60,000,000.00
1200 Smith Street, Suite 3100
Houston, TX 77002
Attention: John Roberts
Telephone: 713-659-4811
Telecopier: 713-659-6915

Bayerische Landesbank Girozentrale, Cayman Islands Branch    $26,666,666.67
560 Lexington Avenue
New York, NY 10022
Attention: Stephen Christenson
Telephone: 212-230-3105
Telecopier: 212-310-9868

Commerzbank AG, New York and Grand Cayman Branches           $40,000,000.00
1230 Peachtree Street, N.E., Suite 3500
Atlanta, GA 30309
Attention: David Suttles/Lee Ward
Telephone: 404-888-6524/6526
Telecopier: 404-888-6539

Credit Suisse First Boston                                   $60,000,000.00
11 Madison Avenue
New York, NY 10010
Attention: James Moran
Telephone: 212-325-9176
Telecopier: 212-325-8615

Deutsche Bank AG New York and/or Cayman Islands Branches     $60,000,000.00
31 West 52nd Street
New York, NY 10019
Attention: Joel Makowsky
Telephone: 212-469-7896
Telecopier: 212-469-5711
</TABLE>

<PAGE>   83

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
Bayerische Hypo- und Vereinsbank AG, New York Branch         $60,000,000.00
150 East 42nd Street
New York, NY 10017
Attention: Yoram Danker/Steve Atwell
Telephone: 212-672-5446/5458
Telecopier: 212-672-5530

The Industrial Bank of Japan Trust Company                   $40,000,000.00
Three Allen Center, Suite 4850
Houston, TX 77002
Attention: Mr. Lynn Williford
Telephone: 713-651-9444 ext.104
Telecopier: 713-651-9209

KBC Bank N.V.                                                $60,000,000.00
125 West 55th Street
New York, NY 10019
Attention: Christine Park
Telephone: 212-541-0731
Telecopier: 212-541-0784

National Westminister Bank Plc                               $60,000,000.00
600 Travis Street, Suite 6070
Houston, TX 77002
Attention: Patty Dundee/Matt Main
Telephone: 713-221-2423/2441
Telecopier: 713-221-2430

Societe Generale                                             $60,000,000.00
1111 Bagby Street, Suite 2020
Houston, TX 77002
Attention: Paul Cornell
Telephone: 713-759-6301
Telecopier: 713-650-0824

The Fuji Bank, Limited                                       $60,000,000.00
1221 McKinney Street, Suite 4100
One Houston Center
Houston, TX 77010
Attention: Mark Polasek
Telephone: 713-759-1800
Telecopier: 713-759-0717
</TABLE>

<PAGE>   84

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
Australia & New Zealand Banking Group Limited                $26,666,666.67
1177 Avenue of the Americas
New York, NY 10036
Attention: Anna Arxer/David Giacalone
Telephone: 212-801-9795/9814
Telecopier: 212-801-9131/4814

The Bank of New York                                         $60,000,000.00
One Wall Street, 19th Floor
New York, NY 10286
Attention: Peter Keller
Telephone: 212-635-7861
Telecopier: 212-635-7923

Bank of Nova Scotia                                          $60,000,000.00
1100 Louisiana, Suite 3000
Houston, TX 77002
Attention: Todd Mogil
Telephone: 713-759-3445
Telecopier: 713-752-2425

Bank One, NA(Chicago)                                        $60,000,000.00
910 Travis, 6th Floor
Houston, TX 77002
Attention: Susan Stiernberg/Karen
           Patterson/Helen Carr
Telephone: 713-751-3751/3863/3731
Telecopier: 713-751-3760/3982/3760

Barclays Bank                                                 $40,000,000.00
222 Broadway, 12th Floor
New York, NY 10038
Attention: Richard Williams/John Sullivan/
           Nicholas Bell/Virginia Corpus
Telephone: 212-412-7570/7605/4029/7512
Telecopier: 212-412-7585/2441/7585

Credit Agricole Indosuez                                      $26,666,666.67
600 Travis, Suite 2340
Houston, TX 77002
Attention: Brian Knezeak/Doug Whiddon
Telephone: 713-223-7001/7003
Telecopier: 713-223-7029
</TABLE>

<PAGE>   85

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
Credit Lyonnais                                               $60,000,000.00
1000 Louisiana Street, Suite 5360
Houston, TX 77002
Attention: Rob LaRocque/Richard
           Kaufman/Mark Isensee/Tati Sulistio
Telephone: 713-753-8733/8721/8716/8710
Telecopier: 713-751-0307

The Dai-Ichi Kangyo Bank, Ltd.                                $26,666,666.67
One World Trade Center, Suite 4811
New York, NY 10048
Attention: Bertram Tang/Katsuya Noto
Telephone: 212-432-8839/6627
Telecopier: 212-912-1879

DLJ Funding, Inc.                                             $60,000,000.00
277 Park Avenue, 10th Floor
New York, NY 10172
Attention: Diane Albanese/Greg Biddle
Telephone: 212-892-2903/6142
Telecopier: 212-892-6031

First Union National Bank                                     $60,000,000.00
1001 Fannin Street, Suite 2255
Houston, TX 77002
Attention: Philip Trinder
Telephone: 713-346-2718
Telecopier: 713-650-1071

Fleet National Bank                                           $40,000,000.00
100 Federal Street, 01-08-02
Boston, MA 02110
Attention: Jill Calabrese
Telephone: 617-434-9579
Telecopier: 617-434-3652

Morgan Guranty Trust Company of New York                      $40,000,000.00
1221 McKinney Street, Suite 3150
Houston, TX 77002
Attention: Russell L. Sherrill
Telephone: 713-276-4625
Telecopier: 713-276-4604
</TABLE>

<PAGE>   86

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
Mellon Bank, N.A.                                             $60,000,000.00
One Mellon Bank Center, Room 4530
Pittsburgh, PA 15258
Attention: Roger Howard
Telephone: 412-234-5606
Telecopier: 412-236-1840

National Australia Bank Ltd.                                  $26,666,666.67
200 Park Avenue, 34th Floor
New York, NY
Attention: Matthew Woolf/Paul
Morrison/Nick Woutas/Frank Campiglia
Telephone: 212-916-9574/9519/9665/9595
Telecopier: 212-986-6958/212-983-1969

The Norinchukin Bank, New York Branch                         $40,000,000.00
245 Park Avenue, 29th Floor
New York, NY 10167
Attention: Keisuke Ishii
Telephone: 212-808-4195
Telecopier: 212-697-5754

Sumitomo Bank Ltd.                                            $40,000,000.00
277 Park Avenue, 6th Floor
New York, NY 10172
Attention: Bruce Meredith
Telephone: 212-224-4194
Telecopier: 212-224-4384

SunTrust Banks, Inc.                                          $40,000,000.00
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA 30308
Attention: John Fields, Jr./Joe McCreary
Telephone: 404-724-3667/404-532-0274
Telecopier: 404-827-6270

Toronto Dominion (Texas), Inc.                                $60,000,000.00
909 Fannin Street, Suite 1700
Houston, TX 77010
Attention: Carolyn Faeth
Telephone: 713-427-8520
Telecopier: 713-951-9921
</TABLE>

<PAGE>   87

<TABLE>
<CAPTION>
Name and Address of Lender                                  Amount of Commitment
--------------------------                                  --------------------
<S>                                                         <C>
Wells Fargo Bank                                              $26,666,666.67
1000 Louisiana Street, 3rd Floor
MAC 5002-031
Houston, TX 77002
Attention: John Lane
Telephone: 713-319-1370

Telecopier: 713-739-1087

Westdeutsche Landesbank Girozentrale                          $40,000,000.00
1990 Post Oak Blvd., Suite 1100
Houston, TX 77056
Attention: Richard Newman
Telephone: 713-963-5203
Telecopier: 713-963-5308

Dresdner Bank AG New York and Grand Cayman Branches           $26,666,666.67
75 Wall Street
New York, NY 10005
Attention: Mike Mangan
Telephone: 212-429-2112
Telecopier: 212-429-2081

Banco Bilbao Vizcayz Argentaria                               $26,666,666.67
1345 Avenue of the Americas
New York, NY 10105
Attention: Manuel Sanchez
Telephone: 212-728-1511
Telecopier: 212-333-2904
</TABLE>

<PAGE>   88

                                                                             A-1

                                                                       EXHIBIT A

                                     FORM OF
                                      NOTE

$                                                             New York, New York
 -------                                                          August 4, 2000

         FOR VALUE RECEIVED, the undersigned, ___________________, a ________
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of (the "Lender") at the office of The Chase Manhattan Bank, located at
270 Park Avenue, New York, New York 10017, in lawful money of the United States
of America and in same day funds, on the second anniversary of the Termination
Date (or if the Lender is an Objecting Lender, the second anniversary of the
Commitment Expiration Date applicable to the Lender) the principal amount of (a)
DOLLARS ($ ), or, if less, (b) the aggregate unpaid principal amount of all
Revolving Credit Advances made by the Lender to the Borrower pursuant to
subsection 2.1 of the Credit Agreement, as hereinafter defined. The Borrower
further agrees to pay interest in like money at such office on the unpaid
principal amount hereof from time to time outstanding at the rates and on the
dates specified in the Credit Agreement.

         The holder of this Note is authorized to, and prior to any transfer
hereof shall, endorse on the schedules attached hereto and made a part hereof or
on a continuation thereof which shall be attached hereto and made a part hereof
the date, Type and amount of each Revolving Credit Advance made pursuant to
subsection 2.1 of the Credit Agreement and the date and amount of each payment
or prepayment of principal thereof, each continuation thereof, each conversion
of all or a portion thereof to another Type and, in the case of Eurodollar Rate
Advances, the length of each Interest Period with respect thereto. Each such
endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement shall not affect
the obligations of the Borrower in respect of such Revolving Credit Advance.

         This Note (a) is one of the Notes referred to in the $2,000,000,000
364-Day Revolving Credit and Competitive Advance Facility Agreement, dated as of
August 4, 2000 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among El Paso Energy Corporation, El Paso Natural
Gas Company, Tennessee Gas Pipeline Company, the Lender, the other banks and
financial institutions from time to time parties thereto, The Chase Manhattan
Bank, as Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro
Bank, N.V., as Co-Documentation Agents, and Bank of America, N.A., as
Syndication Agent (b) is subject to the provisions of the Credit Agreement and
(c) is subject to optional and mandatory prepayment in whole or in part as
provided in the Credit Agreement.

<PAGE>   89

                                                                             A-2

         Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.

         All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind except those
expressly required under the Credit Agreement.

         Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                                                 [BORROWER]

                                                 By:
                                                    ----------------------------
                                                    Title:

<PAGE>   90

                                                                               1

                                                              Schedule A to Note

           ADVANCES, CONVERSIONS AND REPAYMENTS OF BASE RATE ADVANCES

<TABLE>
<CAPTION>
                                                                             Amount of Base
                                                           Amount of         Rate Advances
                                       Amount           Principal of Base     Converted to      Unpaid Principal
            Amount of Base          Converted to          Rate Advances      Eurodollar Rate    Balance of Base      Notation
 Date       Rate Advances         Base Rate Advances         Repaid             Advances          Rate Advances       Made By
 ----       --------------        ------------------    -----------------    ----------------   -----------------    ---------
<S>         <C>                   <C>                   <C>                  <C>                <C>                  <C>

</TABLE>

<PAGE>   91

                                                                               1

                                                              Schedule B to Note

               ADVANCES, CONTINUATIONS, CONVERSIONS AND REPAYMENTS
                          OF EURODOLLAR RATE ADVANCES

<TABLE>
<CAPTION>
                                                                                   Amount of
                                                                                Eurodollar Rate
                              Amount         Interest Period    Amount of          Advances        Unpaid Principal
            Amount of       Converted to      and Eurodollar   Principal of      Converted to         Balance of
        Eurodollar Rate    Eurodollar Rate      Rate with     Eurodollar Rate      Base Rate       Eurodollar Rate      Notation
Date        Advances          Advances       Respect Thereto  Advances Repaid      Advances            Advances         Made By
----    ---------------    ---------------   ---------------  ---------------   ---------------    ----------------     --------
<S>     <C>                <C>               <C>              <C>               <C>                <C>                   <C>

</TABLE>

<PAGE>   92

                                                                             B-1

                                                                       EXHIBIT B

                                     FORM OF
                               NOTICE OF BORROWING

The Chase Manhattan Bank, as Administrative Agent
 for the Lenders parties
 to the Credit Agreement
 referred to below
270 Park Avenue
New York, New York 10017
                                                                          [Date]

Attention: El Paso Energy Corporation

Ladies and Gentlemen:

         The undersigned, EL PASO ENERGY CORPORATION, refers to the
$2,000,000,000 364-Day Revolving Credit and Competitive Advance Facility
Agreement, dated as of August 4, 2000 (the "Credit Agreement", the terms defined
therein being used herein as therein defined), among the undersigned, El Paso
Natural Gas Company, Tennessee Gas Pipeline Company, certain Lenders parties
thereto, The Chase Manhattan Bank, as Administrative Agent and CAF Advance Agent
for said Lenders, Citibank, N.A. and ABN Amro Bank, N.V., as Co-Documentation
Agents, and Bank of America, N.A., as Syndication Agent, and hereby gives you
notice, irrevocably, pursuant to Section 2.2 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the
"Proposed Borrowing") as required by Section 2.2(a) of the Credit Agreement:

         (i) The Borrower for the Proposed Borrowing is ______________.

         (ii) The Business Day of the Proposed Borrowing is ___________, 200_.

         (iii) The Type of Advances comprising the Proposed Borrowing is [Base
     Rate Advances] [Eurodollar Rate Advances].

         (iv) The aggregate amount of the Proposed Borrowing is $__________.

         (v) The Interest Period for each Eurodollar Rate Advance made as part
     of the Proposed Borrowing is [______ month[s]].

<PAGE>   93
                                                                             B-2

                  The undersigned hereby certifies that the following statements
are true on the date hereof, and will be true on the date of the Proposed
Borrowing, before and immediately after giving effect thereto and to the
application of the proceed therefrom:

                  (A) each representation and warranty contained in Section 4.1
         is correct in all material respects as though made on and as of such
         date; and

                  (B) no event has occurred and is continuing, or would result
         from such Proposed Borrowing, which constitutes an Event of Default or
         Default.

                                       Very truly yours,

                                       EL PASO ENERGY CORPORATION

                                       By:
                                          --------------------------------------
                                          Title:

<PAGE>   94

                                                                               1

                                                                       EXHIBIT C

                                     FORM OF
                               CAF ADVANCE REQUEST

                                                            [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York 10017

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000,
among El Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas
Pipeline Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro Bank,
N.V., as Co-Documentation Agents, and Bank of America, N.A., as Syndication
Agent (as the same may be amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"). Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

                  This is a [Fixed Rate] [LIBO Rate] CAF Advance Request*
pursuant to Section 2.5 of the Credit Agreement requesting quotes for the
following CAF Advances:

<TABLE>
<CAPTION>
                                                 Loan 1                  Loan 2                 Loan 3
                                                 ------                  ------                 ------
<S>                                           <C>                     <C>                     <C>
Aggregate Principal Amount                    $                       $                       $
                                               ----------              ----------              ---------

CAF Advance Date

Maturity Date

Interest Payment Dates
</TABLE>

----------

*        Pursuant to the Credit Agreement, a CAF Advance Request may be
         transmitted in writing, by telecopy, or by telephone, immediately
         confirmed by telecopy. In any case, a CAF Advance Request shall contain
         the information specified in the second paragraph of this form.

<PAGE>   95

                                                                               2
                                       Very truly yours,
                                       [Borrower]

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

<PAGE>   96

                                                                       EXHIBIT D
                                     FORM OF
                                CAF ADVANCE OFFER
                                                            [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York  10017

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000,
among El Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas
Pipeline Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro Bank,
N.V., as Co-Documentation Agents, and Bank of America, N.A., as Syndication
Agent (as the same may be amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"). Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

                  In accordance with Section 2.5 of the Credit Agreement, the
undersigned Lender offers to make CAF Advances thereunder in the following
amounts with the following maturity dates:

<TABLE>
<S>                                              <C>
CAF Advance Date:          __________, 200__     Aggregate Maximum Amount: $_________

Maturity Date 1:                                 Maximum Amount: $__________
         __________, 200__                       $________ offered at _______*
                                                 $________ offered at _______*

Maturity Date 2:                                 Maximum Amount: $__________
         __________, 200__                       $________ offered at _______*
                                                 $________ offered at _______*

Maturity Date 3:                                 Maximum Amount: $__________
         __________, 200__                       $________ offered at _______*
                                                 $________ offered at _______*
</TABLE>

--------

*    Insert the interest rate offered for the specified CAF Advance. In the case
     of LIBO Rate CAF Advances, insert a margin bid. In the case of Fixed Rate
     CAF Advances, insert a fixed rate bid.

                                       Very truly yours,

                                       [NAME OF CAF ADVANCE LENDER]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:
                                          Telephone No.:
                                          Telecopy No.:

<PAGE>   97

                                                                       EXHIBIT E

                                     FORM OF
                            CAF ADVANCE CONFIRMATION

                                                            [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York  10017

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000,
among El Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas
Pipeline Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro Bank,
N.V., as Co-Documentation Agents, and Bank of America, N.A., as Syndication
Agent (as the same may be amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"). Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

                  In accordance with Section 2.5(d) of the Credit Agreement, the
undersigned accepts and confirms the offers by the CAF Advance Lender(s) to make
CAF Advances to the undersigned on _______ ,______ [date of CAF Advance
Borrowing] under Section 2.5(d) in the (respective) amount(s) set forth on the
attached list of CAF Advances offered.

                                       Very truly yours,

                                       [Borrower]

                                       By
                                          --------------------------------------
                                          Name:
                                          Title:

[The Borrower must attach CAF Advance offer list prepared by the CAF Advance
Agent with accepted amount entered by the Borrower to the right of each CAF
Advance offer].

<PAGE>   98

                                                                       EXHIBIT F

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                            Dated _____________, ____

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000
(as the same may be amended or otherwise modified from time to time, the "Credit
Agreement") among EL PASO ENERGY CORPORATION, a Delaware corporation (the
"Company"), EL PASO NATURAL GAS COMPANY, a Delaware corporation, TENNESSEE GAS
PIPELINE COMPANY, a Delaware corporation, the Lenders (as defined in the Credit
Agreement), The Chase Manhattan Bank, as administrative agent (the
"Administrative Agent") and as CAF Advance Agent (the "CAF Advance Agent") for
the Lenders, CITIBANK, N.A. and ABN AMRO BANK, N.V., as Co-Documentation Agents,
and BANK OF AMERICA, N.A. , as Syndication Agent. Terms defined in the Credit
Agreement are used herein with the same meaning.

                  _____________ (the "Assignor") and ____________ (the
"Assignee") agree as follows:

                  1. The Assignor hereby sells and assigns to the Assignee, and
the Assignee hereby purchases and assumes from the Assignor, that interest in
and to all of the Assignor's rights and obligations under the Credit Agreement
as of the date hereof which represents the percentage interest specified on
Schedule 1 of all outstanding rights and obligations under the Credit Agreement,
including, without limitation, such interest in the Assignor's Commitment, the
Advances owing to the Assignor, and the Notes held by the Assignor. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth in Section 2 of Schedule
1.

                  2. The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iii) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of each Borrower or the performance or observance by each Borrower of
any of its obligations under the Credit Agreement or any other instrument or
document furnished pursuant thereto; and (iv) attaches the Notes referred to in
paragraph 1 above and requests that the Administrative Agent exchange such Notes
for new Notes payable to the order of the Assignee in an amount equal to the
Commitment assumed by the Assignee pursuant hereto or new Notes payable to the
order of the Assignee in an amount equal to the Commitment assumed by the
Assignee pursuant hereto and the Assignor in an amount equal to the Commitment
retained by the Assignor under the Credit Agreement, respectively, as specified
on Schedule 1 hereto.

<PAGE>   99

                                                                             F-2

                  3. The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 4.1 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Administrative Agent, the Assignor or any other Lender
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Administrative Agent and CAF Advance Agent to take
such action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Administrative Agent and CAF Advance Agent by
the terms thereof, together with such powers as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms all of
the obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender; [and] (vi) specifies as its address for notices the
address set forth beneath its name on the signature pages hereof [and (vii)
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee's status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to the Assignee under the Credit Agreement and the Notes or such other
documents as are necessary to indicate that all such payments are subject to
such rates at a rate reduced by an applicable tax treaty]*.

                  4. Following the execution of this Assignment and Acceptance
by the Assignor and the Assignee, it will be delivered to the Administrative
Agent for acceptance and recording by the Administrative Agent. The effective
date of this Assignment and Acceptance shall be the date of acceptance thereof
by the Administrative Agent, unless otherwise specified on Schedule 1 hereto
(the "Effective Date").

                  5. Upon such acceptance and recording by the Administrative
Agent, as of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have
the rights and obligations of Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and
be released from its obligations under the Credit Agreement.

                  6. Upon such acceptance and recording by the Administrative
Agent, from and after the Effective Date, the Administrative Agent shall make
all payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal,
interest and commitment fees with respect thereto) to the Assignee. The Assignor
and Assignee shall make all appropriate adjustments in payments under the Credit
Agreement and the Notes for periods prior to the Effective Date directly between
themselves.

----------

*    If the Assignee is organized under the laws of a jurisdiction outside the
     United States.

<PAGE>   100
                                                                             F-3

                  7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed by their respective officers thereunto
duly authorized, as of the date first above written, such execution being made
on Schedule 1 hereto.

<PAGE>   101

                                   Schedule 1
                                       to
                            Assignment and Acceptance
                              Dated _________, ____

<TABLE>
<S>                                                                            <C>

Section 1.

         Percentage Interest:                                                                %
                                                                                       ------

Section 2.

         Assignee's Commitment:                                                      $
                                                                                      -------
         Aggregate Outstanding Principal
           Amount of Advances owing to the Assignee:
                                                                                     $
                                                                                      -------

         Note payable to the order of the Assignee
                                                                Dated:
                                                                                -------,-----

                                                Principal amount:                    $
                                                                                      -------
         Note payable to the order of the Assignor
                                                                Dated:
                                                                                -------,-----

                                                Principal amount:                    $
                                                                                      -------
Section 3.

         Effective Date*:
                                                                                -------,-----
</TABLE>

[NAME OF ASSIGNEE]               [NAME OF ASSIGNOR]

By:                              By:
   ----------------------           --------------------------------
   Title:                           Title:

Address for notices:
[Address]

----------

*    This date should be no earlier than the date of acceptance by the
     Administrative Agent.

<PAGE>   102
                                                                               2

Consented to:

EL PASO ENERGY CORPORATION          THE CHASE MANHATTAN BANK, as
                                       Administrative Agent

By:                                 By:
   -----------------------             -------------------------
   Title:                              Title:

<PAGE>   103

                                                                               3

Accepted this __ day
of __________, ___

THE CHASE MANHATTAN BANK, as
  Administrative Agent

By:
   -------------------------
   Title:

<PAGE>   104

                                                                       EXHIBIT G

FORM OF OPINION OF [ASSOCIATE GENERAL][SENIOR] COUNSEL OF THE COMPANY

                                                                  August 4, 2000

To Each of the Lenders, the Administrative Agent
  and the CAF Advance Agent
  Referred to Below
c/o The Chase Manhattan Bank
270 Park Avenue
New York, New York  10017

                         Re: El Paso Energy Corporation

Ladies and Gentlemen:

                  This opinion is furnished to you pursuant to Section
3.2(b)(iii) of the $2,000,000,000 364-Day Revolving Credit and Competitive
Advance Facility Agreement, dated as of August 4, 2000 (the "Credit Agreement"),
among El Paso Energy Corporation (the "Company"), El Paso Natural Gas Company
("EPNGC"), Tennessee Gas Pipeline Company ("Tennessee") (Tennessee, together
with the Company and EPNGC, the "Borrowers"), the banks and other financial
institutions from time to time party thereto (each a "Lender", and together the
"Lenders"), The Chase Manhattan Bank, as Administrative Agent (in such capacity,
the "Administrative Agent") and as CAF Advance Agent (in such capacity, the "CAF
Advance Agent") for the Lenders, CITIBANK, N.A. and ABN AMRO BANK, N.V., as
Co-Documentation Agents (in such capacity, the "Co-Documentation Agents") , and
BANK OF AMERICA, N.A., as Syndication Agent (in such capacity, the "Syndication
Agent"). Unless the context otherwise requires, all capitalized terms used
herein without definition shall have the meanings ascribed to them in the Credit
Agreement.

                  I am [Associate General] [Senior] Counsel of the Company, and
I, or attorneys over whom I exercise supervision, have acted as counsel for the
Borrowers in connection with the preparation, execution and delivery of the
Credit Agreement. In that connection, I or such attorneys have examined:

                  (1) the Credit Agreement, executed by the parties thereto;

                  (2) the Notes, executed by the Borrowers; and

                  (3) the other documents furnished by the Borrowers pursuant to
Sections 3.1 and 3.2 of the Credit Agreement.

<PAGE>   105

                                                                             G-2

                  I, or attorneys over whom I exercise supervision, have also
examined the originals, or copies certified to our satisfaction, of the
agreements, instruments and other documents, and all of the orders, writs,
judgments, awards, injunctions and decrees, which affect or purport to affect
the Borrowers' ability to perform their respective obligations under the Credit
Agreement or the Notes (collectively referred to herein as the "Documents"). In
addition, I, or attorneys over whom I exercise supervision, have examined the
originals, or copies certified to our satisfaction, of such other corporate
records of the Borrowers, certificates of public officials and of officers of
the Borrowers, and agreements, instruments and other documents, as I have deemed
necessary as a basis for the opinions hereinafter expressed. In all such
examinations, I, or attorneys over whom I exercise supervision, have assumed the
legal capacity of all natural persons executing documents, the genuineness of
all signatures on original or certified, conformed or reproduction copies of
documents of all parties (other than, with respect to the Documents, the
Borrowers), the authenticity of original and certified documents and the
conformity to original or certified copies of all copies submitted to such
attorneys or me as conformed or reproduction copies. As to various questions of
fact relevant to the opinions expressed herein, I have relied upon, and assume
the accuracy of, representations and warranties contained in the Credit
Agreement and certificates and oral or written statements and other information
of or from public officials, officers and/or representatives of the Borrowers
and others.

                  I have assumed that the parties to the Documents other than
the Borrowers have the power to enter into and perform such documents and that
such documents have been duly authorized, executed and delivered by, and
constitute legal, valid and binding obligations of, such parties.

                  The opinions expressed below are limited to the federal laws
of the United States and, to the extent relevant hereto, the General Corporation
Law of the State of Delaware, as currently in effect. I assume no obligation to
supplement this opinion if any applicable laws change after the date hereof or
if I become aware of any facts that might change the opinions expressed herein
after the date hereof.

                  Based on the foregoing and upon such investigation as we have
deemed necessary, and subject to the limitations, qualifications and assumptions
set forth herein, I am of the following opinion:

                  1. Each Borrower (i) is a corporation duly incorporated and
         existing in good standing under the laws of the State of Delaware, and
         (ii) possesses all the corporate powers and all other authorizations
         and licenses necessary to engage in its business and operations as now
         conducted, the failure to obtain or maintain which would have a
         Material Adverse Effect.

                  2. The execution, delivery and performance by each Borrower of
         the Documents to which it is a party are within such Borrower's
         corporate powers and have been duly authorized by all necessary
         corporate action in respect of or by such Borrower, and do not
         contravene (i) such Borrower's charter or by-laws, each as amended to
         date, (ii) any federal law, rule or regulation applicable to such
         Borrower (excluding provisions of federal law expressly referred to in
         and covered by the opinion of Jones, Day, Reavis &

<PAGE>   106

                                                                             G-3

         Pogue delivered to you in connection with the transactions contemplated
         hereby) or any provision of the General Corporation Law of the State of
         Delaware applicable to such Borrower, or (iii) any contractual
         restriction binding on or affecting such Borrower. The Documents to
         which it is a party have been duly executed and delivered on behalf of
         each Borrower.

                  3. No authorization or approval or other action by, and no
         notice to or filing with, any federal governmental authority or
         regulatory body (including, without limitation, the FERC) is required
         for the due execution, delivery and performance by any Borrower of the
         Documents to which it is a party, except those required in the ordinary
         course of business in connection with the performance by each Borrower
         of its obligations under certain covenants and warranties contained in
         the Documents to which it is a party.

                  4. To the best of my knowledge, there is no action, suit or
         proceeding pending or overtly threatened against or involving the
         Company or any of the Principal Subsidiaries which, in my reasonable
         judgment (taking into account the exhaustion of all appeals), would
         have a material adverse effect upon the consolidated financial
         condition of the Company and its consolidated Subsidiaries taken as a
         whole, or which purports to affect the legality, validity, binding
         effect or enforceability of any Document.

                  These opinions are given as of the date hereof and are solely
for your benefit in connection with the transactions contemplated by the Credit
Agreement. These opinions may not be relied upon by you for any other purpose or
relied upon by any other person for any purpose without my prior written
consent.

                                                  Very truly yours,

<PAGE>   107

                                                                       EXHIBIT H

               FORM OF OPINION OF NEW YORK COUNSEL TO THE COMPANY

                                 August 4, 2000

To Each of the Lenders, the Administrative Agent, the CAF Advance Agent, the
Co-Documentation Agents and the Syndication Agent Referred to Below

c/o The Chase Manhattan Bank
270 Park Avenue, 10th Floor
New York, New York  10017

                  Re:      $2,000,000,000 364-Day Revolving Credit
                           and Competitive Advance Facility Agreement
                           dated as of August 4, 2000

Dear Ladies and Gentlemen:

                  We have acted as special New York counsel for El Paso Energy
Corporation, a Delaware corporation (the "Company"), El Paso Natural Gas
Company, a Delaware corporation ("EPNGC") and Tennessee Gas Pipeline Company, a
Delaware corporation ("Tennessee") (Tennessee together with the Company and
EPNGC, the "Borrowers"), in connection with the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000
(the "Financing Agreement"), among the Company, EPNGC, Tennessee, the banks and
other financial institutions from time to time party thereto (each a "Lender",
and together the "Lenders"), The Chase Manhattan Bank, as administrative agent
(in such capacity, the "Administrative Agent") and as CAF Advance Agent (in such
capacity, the "CAF Advance Agent") for the Lenders, CITIBANK, N.A. and ABN AMRO
BANK, N.V., as Co-Documentation Agents (in such capacity, the Co-Documentation
Agents"), and BANK OF AMERICA, N.A., as Syndication Agent (in such capacity, the
"Syndication Agent"). This opinion is delivered to you pursuant to Section
3.2(b)(iv) of the Financing Agreement. Capitalized terms used herein and not
otherwise defined have the meanings assigned such terms in the Financing
Agreement. With your permission, all assumptions and statements of reliance
herein have been made without any independent investigation or verification on
our part except to the extent otherwise expressly stated, and we express no
opinion with respect to the subject matter or accuracy of the assumptions or
items upon which we have relied.

<PAGE>   108

                                                                             H-2

                  In connection with the opinions expressed herein, we have
examined such documents, records and matters of law as we have deemed necessary
for the purposes of this opinion. We have examined, among other documents, the
following:

                  (a) An executed copy of the Financing Agreement; and

                  (b) An executed copy of each of the Notes.

The documents referred to in items (a) and (b) above are referred to herein
collectively as the "Documents."

                  In all such examinations, we have assumed the legal capacity
of all natural persons executing documents, the genuineness of all signatures,
the authenticity of original and certified documents and the conformity to
original or certified copies of all copies submitted to us as conformed or
reproduction copies. As to various questions of fact relevant to the opinions
expressed herein, we have relied upon, and assume the accuracy of,
representations and warranties contained in the Documents and certificates and
oral or written statements and other information of or from representatives of
the Borrowers and others and assume compliance on the part of all parties to the
Documents with their covenants and agreements contained therein. With respect to
the opinions expressed in paragraph (a) below, our opinions are limited (x) to
our actual knowledge, if any, of the Borrowers' specially regulated business
activities and properties based solely upon an officer's certificate in respect
of such matters and without any independent investigation or verification on our
part and (y) to our review of only those laws and regulations that, in our
experience, are normally applicable to transactions of the type contemplated by
the Documents.

                  To the extent it may be relevant to the opinions expressed
herein, we have assumed that the parties to the Documents have the power to
enter into and perform such documents and to consummate the transactions
contemplated thereby and that such documents have been duly authorized, executed
and delivered by, and, except as set forth in paragraph (b) with respect to the
Borrowers, constitute legal, valid and binding obligations of, such parties.

                  Based upon the foregoing, and subject to the limitations,
qualifications and assumptions set forth herein, we are of the opinion that:

                  (a) The execution and delivery to the Administrative Agent,
the CAF Advance Agent, the Co-Documentation Agents, the Syndication Agent and
the Lenders by each Borrower of the Documents to which it is a party and the
performance by each Borrower of its obligations thereunder (i) do not require
under present law any filing or registration by such Borrower with, or approval
or consent to such Borrower of, any governmental agency or authority of the
State of New York that has not been made or obtained except those required in
the ordinary course of business in connection with the performance by such
Borrower of its obligations under certain covenants and warranties contained in
the Documents to which it is a party and (ii) do not violate any present law, or
present regulation of any governmental agency or authority, of the State of New
York applicable to such Borrower or its property.

<PAGE>   109

                  (b) The Documents to which it is a party constitute legal,
valid and binding obligations of each Borrower enforceable against such Borrower
in accordance with their respective terms.

                  (c) The borrowings by each Borrower under the Financing
Agreement and the applications of the proceeds thereof as provided in the
Financing Agreement will not violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

                  The opinions set forth above are subject to the following
         qualifications:

         (A) We express no opinion as to:

                  (i) the validity, binding effect or enforceability (a) of any
         provision of the Documents relating to indemnification, contribution or
         exculpation in connection with violations of any securities laws or
         statutory duties or public policy, or in connection with willful,
         reckless or criminal acts or gross negligence of the indemnified or
         exculpated party or the party receiving contribution; or (b) of any
         provision of any of the Documents relating to exculpation of any party
         in connection with its own negligence that a court would determine in
         the circumstances under applicable law to be unfair or insufficiently
         explicit;

                  (ii) the validity, binding effect or enforceability of (a) any
         purported waiver, release, variation, disclaimer, consent or other
         agreement to similar effect (all of the foregoing, collectively, a
         "Waiver") by the Borrowers under the Documents to the extent limited by
         provisions of applicable law (including judicial decisions), or to the
         extent that such a Waiver applies to a right, claim, duty, defense or
         ground for discharge otherwise existing or occurring as a matter of law
         (including judicial decisions), except to the extent that such a Waiver
         is effective under and is not prohibited by or void or invalid under
         provisions of applicable law (including judicial decisions), (b) any
         provision of any Document relating to choice of governing law to the
         extent that the validity, binding effect or enforceability of any such
         provision is to be determined by any court other than a court of the
         State of New York or (c) any provision of any Document relating to
         forum selection to the extent the forum is a federal court;

                  (iii) the enforceability of any provision in the Documents
         specifying that provisions thereof may be waived only in writing, to
         the extent that an oral agreement or an implied agreement by trade
         practice or course of conduct has been created that modifies any
         provision of the Documents;

                  (iv) the effect of any law of any jurisdiction other than the
         State of New York wherein the Administrative Agent, the CAF Advance
         Agent, the Co-Documentation Agents, the Syndication Agent or any Lender
         may be located or wherein enforcement of any document referred to above
         may be sought that limits the rates of interest legally chargeable or
         collectible; and

                  (v) any approval, consent or authorization of the Federal
         Energy Regulatory Commission or any other United States federal agency
         or authority needed in connection

<PAGE>   110

                                                                             H-4

         with the execution, delivery and performance by any Borrower of the
         Documents to which it is a party, the consummation of the transactions
         contemplated thereby and compliance with the terms and conditions
         thereof.

         (B) Our opinions above are subject to (i) applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, voidable preference, moratorium
or similar laws, and related judicial doctrines, from time to time in effect
affecting creditors' rights and remedies generally, (ii) general principles of
equity (including, without limitation, standards of materiality, good faith,
fair dealing and reasonableness, equitable defenses and limits on the
availability of equitable remedies), whether such principles are considered in a
proceeding at law or in equity and (iii) the qualification that certain other
provisions of the Documents may be unenforceable in whole or in part under the
laws (including judicial decisions) of the State of New York or the United
States of America, but the inclusion of such provisions does not affect the
validity as against any Borrower of the Documents to which it is a party, taken
as a whole, and the Documents contain adequate provisions for enforcing payment
of the obligations governed thereby, subject to the other qualifications
contained in this letter.

         (C) Our opinions as to enforceability are subject to the effect of
generally applicable rules of law that:

                  (i) limit the availability of a remedy under certain
         circumstances when another remedy has been elected; and

                  (ii) may, where less than all of a contract may be
         unenforceable, limit the enforceability of the balance of the contract
         to circumstances in which the unenforceable portion is not an essential
         part of the agreed exchange; and

                  (iii) govern and afford judicial discretion regarding the
         determination of damages and entitlement to attorneys' fees and other
         costs.

         (D) For the purposes of the opinion set forth in paragraph (c) above,
we have assumed that (i) none of the Administrative Agent, the CAF Advance
Agent, the Co-Documentation Agents, the Syndication Agent or any of the Lenders
has or will have the benefit of any agreement or arrangement (excluding the
Documents) pursuant to which any Advances are directly or indirectly secured by
Margin Stock, (ii) none of the Administrative Agent, the CAF Advance Agent, the
Co-Documentation Agents, the Syndication Agent, any of the Lenders or any of
their respective affiliates has extended or will extend any other credit to any
of the Borrowers directly or indirectly secured by Margin Stock and (iii) none
of the Administrative Agent, the CAF Advance Agent, the Co-Documentation Agents
and the Syndication Agents or any of the Lenders has relied or will rely upon
any Margin Stock as collateral in extending or maintaining any Advances pursuant
to the Financing Agreement.

         (E) For purposes of our opinions above insofar as they relate to the
Borrowers, we have assumed that (i) each Borrower is a corporation validly
existing in good standing in its jurisdiction of incorporation, has all
requisite power and authority, and has obtained all requisite corporate,
shareholder, third party and governmental authorizations, consents and
approvals, and made all requisite filings and registrations, necessary to
execute, deliver and perform the
<PAGE>   111
                                                                             H-5

Documents to which it is a party (except to the extent noted in paragraph (a)
above), and that such execution, delivery and performance will not violate or
conflict with any law, rule, regulation, order, decree, judgment, instrument or
agreement binding upon or applicable to such Borrower or its properties (except
to the extent noted in paragraph (a) above), and (ii) the Documents to which
each Borrower is a party have been duly executed and delivered by such Borrower.

                  The opinions expressed herein are limited to the federal laws
of the United States of America (in the case of the matters covered in paragraph
(c) above) and the laws of the State of New York, as currently in effect, except
that we express no opinion with respect to laws, rules or regulations of the
State of New York, or of any governmental agency or authority thereof,
applicable to companies engaged in the gathering, processing, transmission,
distribution or marketing of natural gas or other hydrocarbon derivatives or
power generation or the generation, transmission, distribution or marketing of
electricity, or as to filings, registrations, approvals or consents under or by
such laws, rules or regulations.

                  We express no opinion as to the compliance or noncompliance,
or the effect of the compliance or noncompliance, of each of the addressees with
any state or federal laws or regulations applicable to each of them by reason of
their status as or affiliation with a federally insured depository institution.

                  The opinions expressed herein are solely for the benefit of
the Administrative Agent, CAF Advance Agent, the Co-Documentation Agents, the
Syndication Agent and the Lenders and may not be relied on in any manner or for
any purpose by any other person or entity.

                                       Very truly yours,

                                       JONES, DAY, REAVIS & POGUE

                                       By:
                                          --------------------------------------

<PAGE>   112

                                                                       EXHIBIT I

                          [LETTERHEAD OF PROCESS AGENT]

                                                             [DATE]

To each of the Lenders parties
  to the Credit Agreement (as
  defined and referred to
  below) and to The Chase Manhattan Bank
  as Administrative Agent and
  CAF Advance Agent for said Lenders
c/o The Chase Manhattan Bank
270 Park Avenue
New York, New York  10017

To El Paso Energy Corporation
1001 Louisiana Street
Houston, Texas  77002

El Paso Energy Corporation/El Paso Natural Gas Company/Tennessee Gas Pipeline
Company

Gentlemen:

                  Reference is made to that certain $2,000,000,000 364-Day
Revolving Credit and Competitive Advance Facility Agreement, dated as of August
4, 2000 (said Agreement, as it may hereafter be amended, supplemented or
otherwise modified from time to time, being the "Credit Agreement", the terms
defined therein being used herein with the same meaning) among El Paso Energy
Corporation (the "Company"), El Paso Natural Gas Company ("EPNGC"), Tennessee
Gas Pipeline Company ("Tennessee") (Tennessee, together with the Company and
EPNGC, the "Borrowers") , certain banks and other financial institutions from
time to time party thereto as Lenders thereunder (the "Lenders"), The Chase
Manhattan Bank, as Administrative Agent and CAF Advance Agent (in such
capacities, the "Administrative Agent" and the "CAF Advance Agent") for the
Lenders, CITIBANK, N.A. and ABN AMRO BANK, N.V., as Co-Documentation Agents, and
BANK OF AMERICA, N.A., as Syndication Agent.

          Pursuant to Section 9.9(a) of the Credit Agreement each of the
Borrowers has appointed the undersigned (with an office on the date hereof at
1633 Broadway, New York, New York 10019) as Process Agent to receive on behalf
of such Borrower and its property service of copies of the summons and complaint
and any other process which may be served by the Administrative
<PAGE>   113

                                                                             I-2

Agent, the CAF Advance Agent, any Lender or the holder of any Note in any action
or proceeding by the Administrative Agent, the CAF Advance Agent, any Lender or
the holder of any Note in any New York State or Federal court sitting in New
York City in respect of, but only in respect of, any claims or causes of action
arising out of or relating to the Credit Agreement and the Notes issued pursuant
thereto.

                  The undersigned hereby accepts such appointment as Process
Agent and agrees with each of you that (i) the undersigned will not terminate
the undersigned's agency as such Process Agent prior to ______ , 200_ (and
hereby acknowledges that the undersigned has been paid in full by the Borrower
for its services as Process Agent through such date), (ii) the undersigned will
maintain an office in New York City through such date and will give the
Administrative Agent prompt notice of any change of address of the undersigned,
(iii) the undersigned will perform its duties as Process Agent in accordance
with Section 9.9(a) of the Credit Agreement and (iv) the undersigned will
forward forthwith to the Borrower at its address specified below copies of any
summons, complaint and other process which the undersigned receives in
connection with its appointment as Process Agent.

                  This acceptance and agreement shall be binding upon the
undersigned and all successors of the undersigned.

                                       Very truly yours,

                                       CT CORPORATION SYSTEM

                                       By:
                                          --------------------------------------
                                          Title:

Address of the Borrower:

[Address]

<PAGE>   114

                                                                       EXHIBIT J

                                     FORM OF
                                JOINDER AGREEMENT

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and CAF Advance Facility Agreement, dated as of August 4, 2000 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"; terms defined therein being used herein as therein defined), among
El Paso Energy Corporation,El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain banks and other financial institutions from time to time party
thereto, The Chase Manhattan Bank, as Administrative Agent and CAF Advance
Agent, CITIBANK, N.A. and ABN AMRO BANK, N.V., as Co-Documentation Agents, and
BANK OF AMERICA, N.A., as Syndication Agent.

                  The undersigned hereby acknowledges that it has received and
reviewed a copy (in execution form) of the Credit Agreement, and agrees to:

                  (a) join the Credit Agreement as a Borrower party thereto;

                  (b) be bound by all covenants, agreements and acknowledgments
                      attributable to a Borrower in the Credit Agreement and any
                      Note to which it is a party; and

                  (c) perform all obligations required of it by the Credit
                      Agreement and any Note to which it is a party.

                  The undersigned hereby represents and warrants that the
representations and warranties with respect to it contained in, or made or
deemed made by it in, Article IV of the Credit Agreement are true and correct on
the date hereof.

                  THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  IN WITNESS WHEREOF, the undersigned has caused this Joinder
Agreement to be duly executed and delivered in New York, New York by its proper
and duly authorized officer as of this ______ day ________of ____, .

                                       [Borrower]

                                       By:
                                          --------------------------------------
                                          Title:

<PAGE>   115

                                                                             J-2

ACKNOWLEDGED AND AGREED TO:

[EL PASO ENERGY CORPORATION]

By:
    --------------------------------------
    Title:

<PAGE>   116

                                                                       EXHIBIT K

                                      FORM OF OPINION OF [ASSOCIATE GENERAL]
                         [SENIOR] COUNSEL OF THE COMPANY

                  (a) Each of the Company and the Borrowing Subsidiaries (i) is
         a corporation duly incorporated and existing in good standing under the
         laws of the jurisdiction of its organization, and (ii) possesses all
         the corporate powers and all other authorizations and licenses
         necessary to engage in its business and operations as now conducted,
         the failure to obtain or maintain which would have a Material Adverse
         Effect.

                  (b) The execution and delivery by the Company and the
         Borrowing Subsidiary of the Joinder Agreement and by the Borrowing
         Subsidiary of the Notes made by it and the performance by the Borrowing
         Subsidiary of its obligations as a "Borrower" under the Credit
         Agreement and the Notes made by it are within such corporation's
         corporate powers and have been duly authorized by all necessary
         corporate action in respect of or by each of the Company and the
         Borrowing Subsidiary (as applicable), and do not contravene (i) the
         Company's or the Borrowing Subsidiary's charter or by-laws, each as
         amended to date, (ii) any federal law, rule or regulation applicable to
         the Company or the Borrowing Subsidiary (excluding provisions of
         federal law expressly referred to in and covered by the opinion of [New
         York Counsel] delivered to you in connection with the transactions
         contemplated hereby) or any provision of the General Corporation Law of
         the State of Delaware applicable to such corporation, or (iii) any
         contractual restriction binding on or affecting the Company or the
         Borrowing Subsidiary. The Joinder Agreement has been duly executed and
         delivered on behalf of the Company and the Borrowing Subsidiary and the
         Notes made by the Borrowing Subsidiary have been duly executed and
         delivered on behalf of the Borrowing Subsidiary.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any federal governmental authority or
         regulatory body (including, without limitation, the FERC) is required
         for (i) the due execution and delivery by the Company or the Borrowing
         Subsidiary of the Joinder Agreement, (ii) the performance by the
         Borrowing Subsidiary of its obligations as a "Borrower" under the
         Credit Agreement or (iii) the execution, delivery and performance by
         the Borrowing Subsidiary of the Notes made by it, except those required
         in the ordinary course of business in connection with the performance
         by the Company or the Borrowing Subsidiary of its obligations under
         certain covenants and warranties contained in the Joinder Agreement,
         the Credit Agreement and the Notes and those which have been obtained
         and are in full force and effect.

                  (d) To the best of my knowledge, there is no action, suit or
         proceeding pending or overtly threatened against or involving the
         Company or any of the Principal

<PAGE>   117

                                                                             K-2

         Subsidiaries which, in my reasonable judgment (taking into account the
         exhaustion of all appeals), would have a material adverse effect upon
         the consolidated financial condition of the Company and its
         consolidated Subsidiaries taken as a whole, or which purports to affect
         the legality, validity, binding effect or enforceability of the Joinder
         Agreement, the Credit Agreement or the Notes.

<PAGE>   118

                                                                       EXHIBIT L

                           FORM OF OPINION OF NEW YORK
                             COUNSEL TO THE COMPANY

                  (a) The execution and delivery to the Administrative Agent,
         the CAF Advance Agent, the Co-Documentation Agents, the Syndication
         Agent and the Lenders by the Company and the Borrowing Subsidiary of
         the Joinder Agreement and by the Borrowing Subsidiary of the Notes made
         by it and the performance by the Borrowing Subsidiary of its
         obligations as a "Borrower" under the Credit Agreement and the Notes
         made by it (i) do not require under present law any filing or
         registration by the Company or the Borrowing Subsidiary with, or
         approval or consent to the Company or the Borrowing Subsidiary of, any
         governmental agency or authority of the State of New York that has not
         been made or obtained, except those, if any, required in the ordinary
         course of business in connection with the performance by the Company or
         the Borrowing Subsidiary of their respective obligations under certain
         covenants and warranties contained in the Joinder Agreement, the Credit
         Agreement and the Notes and (ii) do not violate any present law, or
         present regulation of any governmental agency or authority, of the
         State of New York applicable to the Company or the Borrowing Subsidiary
         or its respective property.

                  (b) The Joinder Agreement, the Credit Agreement and the Notes
         (as applicable) constitute the legal, valid and binding obligations of
         each of the Company and the Borrowing Subsidiary enforceable against
         each of the Company and the Borrowing Subsidiary in accordance with
         their respective terms.

                  (c) The borrowings by the Borrowing Subsidiary under the
         Credit Agreement and the applications of the proceeds thereof as
         provided in the Credit Agreement will not violate Regulation T, U or X
         of the Board of Governors of the Federal Reserve System.

<PAGE>   119

                                                                       EXHIBIT M

                                     FORM OF
                                EXTENSION REQUEST

                                                           [Date]

The Chase Manhattan Bank, as Administrative Agent
270 Park Avenue
New York, New York  10017

Attention: Jackie Reid

Gentlemen:

                  Reference is made to the $2,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000,
among the undersigned, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, CITIBANK, N.A. and ABN AMRO BANK,
N.V., as Co-Documentation Agents, and BANK OF AMERICA, N.A., as Syndication
Agent (as the same may be amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"). Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

                  The undersigned hereby represents and warrants that no Event
of Default has occurred or is continuing.

                  This is an Extension Request pursuant to Section 2.23 of the
Credit Agreement requesting an extension of the Stated Termination Date to
[INSERT REQUESTED TERMINATION DATE]. Please transmit a copy of this Extension
Request to each of the Lenders.

                                       EL PASO ENERGY CORPORATION

                                       By:
                                          --------------------------------------
                                          Title:<PAGE>   1

                                                                    EXHIBIT 10.G

================================================================================

                           EL PASO ENERGY CORPORATION

                      -------------------------------------

                              $1,000,000,000 3-YEAR
                        REVOLVING CREDIT AND COMPETITIVE
                           ADVANCE FACILITY AGREEMENT

                           Dated as of August 4, 2000

                      -------------------------------------

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent
                              and CAF Advance Agent

                       CITIBANK, N.A. and ABN AMRO, N.V.,
                           as Co-Documentation Agents

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

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                            <C>
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS........................................................................1
         SECTION 1.1  Certain Defined Terms.......................................................................1
         SECTION 1.2  Computation of Time Periods................................................................17
         SECTION 1.3  Accounting Terms...........................................................................17
         SECTION 1.4  References.................................................................................18

ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES.....................................................................18
         SECTION 2.1  The Revolving Credit Advances..............................................................18
         SECTION 2.2  Making the Revolving Credit Advances.......................................................18
         SECTION 2.3  Evidence of Debt...........................................................................20
         SECTION 2.4  CAF Advances...............................................................................20
         SECTION 2.5  Procedure for CAF Advance Borrowings.......................................................20
         SECTION 2.6  CAF Advance Payments.......................................................................24
         SECTION 2.7  Evidence of Debt...........................................................................24
         SECTION 2.8  Fees.......................................................................................25
         SECTION 2.9  Reduction of the Commitments...............................................................25
         SECTION 2.10  Repayment of Advances.....................................................................26
         SECTION 2.11  Interest on Revolving Credit Advances.....................................................26
         SECTION 2.12  Additional Interest on Eurodollar Rate Advances...........................................26
         SECTION 2.13  Interest Rate Determination...............................................................27
         SECTION 2.14  Voluntary Conversion of Advances..........................................................28
         SECTION 2.15  Optional and Mandatory Prepayments........................................................29
         SECTION 2.16  Increased Costs...........................................................................29
         SECTION 2.17  Increased Capital.........................................................................30
         SECTION 2.18  Illegality................................................................................31
         SECTION 2.19  Pro Rata Treatment, Payments and Computations.............................................31
         SECTION 2.20  Taxes.....................................................................................32
         SECTION 2.21  Sharing of Payments, Etc..................................................................35
         SECTION 2.22  Use of Proceeds...........................................................................35
         SECTION 2.23  Extension of Stated Termination Date......................................................35
         SECTION 2.24  [Intentionally Left Blank]................................................................36
         SECTION 2.25  Replacement of Lenders....................................................................37

ARTICLE III CONDITIONS OF EFFECTIVENESS AND LENDING..............................................................38
         SECTION 3.1  Conditions Precedent to Effectiveness of this Agreement....................................38
         SECTION 3.2  Conditions Precedent to Initial Advances...................................................38
         SECTION 3.3  Conditions Precedent to Initial Advances to Any Borrowing Subsidiary.......................39
         SECTION 3.4  Conditions Precedent to Each Borrowing.....................................................40
</TABLE>

<PAGE>   3

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----

<S>                                                                                                             <C>
ARTICLE IV REPRESENTATIONS AND WARRANTIES........................................................................40
         SECTION 4.1  Representations and Warranties of the Borrowers............................................40

ARTICLE V COVENANTS OF THE BORROWERS.............................................................................43
         SECTION 5.1  Affirmative Covenants......................................................................43
         SECTION 5.2  Negative Covenants.........................................................................44
         SECTION 5.3  Reporting Requirements.....................................................................48
         SECTION 5.4  Restrictions on Material Subsidiaries......................................................51

ARTICLE VI GUARANTEE.............................................................................................51
         SECTION 6.1  Guarantees.................................................................................51
         SECTION 6.2  No Subrogation.............................................................................52
         SECTION 6.3  Amendments, etc. with respect to the Obligations; Waiver of Rights.........................52
         SECTION 6.4  Guarantee Absolute and Unconditional.......................................................53
         SECTION 6.5  Reinstatement..............................................................................54

ARTICLE VII EVENTS OF DEFAULT....................................................................................54
         SECTION 7.1  Event of Default...........................................................................54

ARTICLE VIII THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT..................................................57
         SECTION 8.1  Authorization and Action...................................................................57
         SECTION 8.2  Administrative Agent's and CAF Advance Agent's Reliance, Etc...............................57
         SECTION 8.3  Chase and Affiliates.......................................................................58
         SECTION 8.4  Lender Credit Decision.....................................................................58
         SECTION 8.5  Indemnification............................................................................58
         SECTION 8.6  Successor Administrative Agent and CAF Advance Agent.......................................59
         SECTION 8.7  Syndication Agent; Co-Documentation Agents.................................................59

ARTICLE IX MISCELLANEOUS.........................................................................................60
         SECTION 9.1  Amendments, Etc............................................................................60
         SECTION 9.2  Notices, Etc...............................................................................60
         SECTION 9.3  No Waiver; Remedies........................................................................61
         SECTION 9.4  Costs and Expenses; Indemnity..............................................................61
         SECTION 9.5  Right of Set-Off...........................................................................62
         SECTION 9.6  Binding Effect.............................................................................62
         SECTION 9.7  Assignments and Participations.............................................................62
         SECTION 9.8  Confidentiality............................................................................65
         SECTION 9.9  Consent to Jurisdiction....................................................................65
         SECTION 9.10  GOVERNING LAW.............................................................................66
         SECTION 9.11  Rate of Interest..........................................................................66
         SECTION 9.12  Execution in Counterparts.................................................................67
</TABLE>

<PAGE>   4

                                    SCHEDULE

Schedule I   Commitments, Addresses, Etc.

                                    EXHIBITS

Exhibit A           Form of Note
Exhibit B           Form of Notice of Borrowing
Exhibit C           Form of CAF Advance Request
Exhibit D           Form of CAF Advance Offer
Exhibit E           Form of CAF Advance Confirmation
Exhibit F           Form of Assignment and Acceptance
Exhibit G           Form of Opinion of [Associate General][Senior] Counsel
                       of the Company
Exhibit H           Form of Opinion of New York Counsel to the
                       Company
Exhibit I           Form of Process Agent Letter
Exhibit J           Form of Joinder Agreement
Exhibit K           Form of Opinion of [Associate General][Senior] Counsel of
                       the Company
Exhibit L           Form of Opinion of New York Counsel to the Company
Exhibit M           Form of Extension Request

<PAGE>   5

          $1,000,000,000 3-YEAR REVOLVING CREDIT AND COMPETITIVE ADVANCE
FACILITY AGREEMENT, dated as of August 4, 2000, among EL PASO ENERGY
CORPORATION, a Delaware corporation (the "Company"), EL PASO NATURAL GAS
COMPANY, a Delaware corporation ("EPNGC"), TENNESSEE GAS PIPELINE COMPANY, a
Delaware corporation ("Tennessee"), the several banks and other financial
institutions from time to time parties to this Agreement (the "Lenders"), THE
CHASE MANHATTAN BANK, a New York banking corporation, as administrative agent
(in such capacity, the "Administrative Agent") and as CAF Advance Agent (in such
capacity, the "CAF Advance Agent") for the Lenders hereunder, CITIBANK, N.A. and
ABN AMRO BANK, N.V., as co-documentation agents (in such capacity, the
"Co-Documentation Agents") for the Lenders, and BANK OF AMERICA, N.A., as
syndication agent (in such capacity, the "Syndication Agent") for the Lenders.

          The parties hereto hereby agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

          SECTION I.1 Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Administrative Agent" has the meaning assigned to such term in the
     preamble hereof.

          "Advance" means an advance by a Lender to any Borrower pursuant to
     Article II, and refers to a Base Rate Advance, a Eurodollar Rate Advance or
     a CAF Advance.

          "Affiliate" means as to any Person, any other Person that, directly or
     indirectly, controls, is controlled by or is under common control with such
     Person or is a director or officer of such Person. The term "control"
     (including the terms "controlled by" or "under common control with") means,
     with respect to any Person, the possession, direct or indirect, of the
     power to vote 20% or more of the securities having ordinary voting power
     for the election of directors of such Person or to direct or cause the
     direction of the management and policies of such Person, whether through
     ownership of voting securities or by contract or otherwise. Neither a
     director nor any officer of a Person, in such capacity, shall be deemed an
     "Affiliate" of such Person for purposes of this Agreement.

          "Agreement" means this 3-Year Revolving Credit and Competitive Advance
     Facility, as amended, supplemented or otherwise modified from time to time.

          "Alternate Program" means any program providing for the sale or other
     disposition of trade or other receivables entered into by the Company or a
     Subsidiary which is in addition to or in replacement of the program
     evidenced by either Receivables Purchase and Sale Agreement (whether or not
     either Receivables

                                       1
<PAGE>   6

     Purchase and Sale Agreement shall then be in effect), provided that such
     program is on terms (a) substantially similar to either Receivables
     Purchase and Sale Agreement (as modified to comply with FASB 125 or similar
     policies or guidelines from time to time in effect) or (b) customary for
     similar transactions as reasonably determined by the Administrative Agent.

          "Applicable Eurodollar Rate Margin" with respect to any Eurodollar
     Rate Advance to any Borrower means for any day the rate per annum set forth
     below opposite the applicable S&P Bond Rating and Moody's Bond Rating in
     effect on such day for such Borrower:

<TABLE>
<CAPTION>
             Bond Rating                                Applicable Eurodollar
             (S&P/Moody's)                Level               Rate Margin
             -------------                -----         ---------------------

<S>                                      <C>             <C>
         A/A2 or higher                       I                   .170%
         A-/A3                               II                   .260%
         BBB+/Baa1                          III                   .290%
         BBB/Baa2                            IV                   .375%
         BBB-/Baa3                            V                   .525%
         BB+/Ba1 or lower                    VI                   .775%;
</TABLE>

     provided that (i) if the Bond Ratings for any Borrower do not fall within
     the same Level, the Applicable Eurodollar Rate Margin applicable to such
     day will be the percentage opposite the Bond Rating that is at the higher
     level (Level I being the highest and Level VI being the lowest Level), (ii)
     in the event a Bond Rating for a Borrower is not available from one of the
     Rating Agencies, the Applicable Eurodollar Rate Margin will be based on the
     Bond Rating of the other Rating Agency, (iii) in the event a Bond Rating
     for the Company is available from none of the Rating Agencies, the
     Applicable Eurodollar Rate Margin for the Company will be the percentage
     opposite Level VI, and (iv) in the event a Bond Rating for a Borrowing
     Subsidiary is available from none of the Rating Agencies, the Applicable
     Eurodollar Rate Margin for such Borrower will be determined using the Bond
     Ratings of the Company (unless there is another Borrower (the "Intermediate
     Parent") that directly or indirectly owns 100% of the common stock of such
     Borrower and the Intermediate Parent has a Bond Rating in effect, in which
     case, the Applicable Eurodollar Rate Margin for such Borrower will be
     determined using the Bond Ratings of the Intermediate Parent of such
     Borrower); provided, that for each day on which the aggregate principal
     amount of the Advances outstanding hereunder is equal to or greater than
     25% of the aggregate amount of the total Commitments hereunder, the
     Applicable Eurodollar Rate Margin for each Borrower will be increased by
     .125% for such day.

          "Applicable LIBO Rate" means in respect of any CAF Advance requested
     pursuant to a LIBO Rate CAF Advance Request, an interest rate per annum
     equal to the rate which appears on Page 3750 of the Telerate Service (or
     any successor or substitute page of such Service, or any successor to or
     substitute for such service providing rate

                                       2
<PAGE>   7

     quotations comparable to those currently provided on such page of such
     service, as determined by the Administrative Agent from time to time for
     purposes of providing quotations of interest rates applicable to Dollar
     deposits in the London interbank market) as at approximately 11:00 A.M.,
     London time, two Business Days prior to the beginning of the period for
     which such CAF Advance is to be outstanding as the rate for Dollar deposits
     with a maturity comparable to such period.

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

          "Base Rate" means for any day, a rate per annum (adjusted to the
     nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%, rounded upwards
     to the next highest 1/16 of 1%) equal to the greater of (a) the Prime Rate
     in effect on such day and (b) the Effective Federal Funds Rate in effect on
     such day plus " of 1%. Any change in the Base Rate due to a change in the
     Prime Rate or the Effective Federal Funds Rate shall be effective as of the
     opening of business on the effective day of such change in the Prime Rate
     or the Effective Federal Funds Rate, respectively.

          "Base Rate Advance" means an Advance which bears interest as provided
     in Section 2.11(a)(i).

          "Bond Rating" means a rating assigned to a Borrower"s senior long-term
     unsecured debt by any of the Rating Agencies.

          "Borrowers" means the collective reference to the Company and each
     Borrowing Subsidiary; each a "Borrower".

          "Borrowing" means a borrowing consisting of Advances of the same Type
     made on the same day by the Lenders and, in the case of Eurodollar Rate
     Advances, having Interest Periods of the same duration , it being
     understood that there may be more than one Borrowing on a particular day.

          "Borrowing Subsidiary" means EPNGC, Tennessee and each other domestic
     Subsidiary of the Company which has been designated by the Company as a
     "Borrowing Subsidiary" by written notice to the Administrative Agent, which
     designation shall not have been revoked by written notice by the Company to
     the Administrative Agent (provided, that no such designation shall be
     revoked if either (a) any Default or Event of Default shall have occurred
     and be continuing or (b) any Advance to such Borrowing Subsidiary, or any
     interest accrued thereon, shall be outstanding); collectively, the
     "Borrowing Subsidiaries". For avoidance of doubt, (i) Tennessee may be
     undesignated as a Borrowing Subsidiary by written notice to the
     Administrative Agent by the Company and (ii) EPNGC shall always be a
     Borrower hereunder.

                                       3
<PAGE>   8

          "Business Day" means a day of the year on which banks are not required
     or authorized to close in New York, New York and, if the applicable
     Business Day relates to any Eurodollar Rate Advances or LIBO Rate CAF
     Advances, on which dealings are carried on in the London interbank market.

          "Business Entity" means a partnership, limited partnership, limited
     liability partnership, corporation (including a business trust), limited
     liability company, unlimited liability company, joint stock company, trust,
     unincorporated association, joint venture or other entity.

          "CAF Advance" means an Advance made pursuant to Sections 2.4 and 2.5.

          "CAF Advance Agent" has the meaning assigned to such term in the
     preamble hereof.

          "CAF Advance Availability Period" means the period from and including
     the Closing Date until the earlier of (a) the date which is 7 days prior to
     the Stated Termination Date and (b) the Termination Date.

          "CAF Advance Confirmation" means each confirmation by the applicable
     Borrower of its acceptance of CAF Advance Offers, which CAF Advance
     Confirmation shall be substantially in the form of Exhibit E and shall be
     delivered to the CAF Advance Agent by telecopy.

          "CAF Advance Interest Payment Date" means as to each CAF Advance, each
     interest payment date specified by the applicable Borrower for such CAF
     Advance in the related CAF Advance Request.

          "CAF Advance Lenders" means Lenders from time to time designated by
     the Company, in consultation with the CAF Advance Agent, as CAF Advance
     Lenders as provided in Section 2.4.

          "CAF Advance Maturity Date" means as to any CAF Advance, the date
     specified by the applicable Borrower pursuant to Section 2.5(d)(ii) in its
     acceptance of the related CAF Advance Offer.

          "CAF Advance Offer" means each offer by a CAF Advance Lender to make
     CAF Advances pursuant to a CAF Advance Request, which CAF Advance Offer
     shall contain the information specified in Exhibit D and shall be delivered
     to the CAF Advance Agent by telephone, immediately confirmed by telecopy.

          "CAF Advance Request" means each request by the applicable Borrower
     for CAF Advance Lenders to submit bids to make CAF Advances, which request
     shall contain the information in respect of such requested CAF Advances
     specified in Exhibit C and shall

                                       4
<PAGE>   9

     be delivered to the CAF Advance Agent in writing, by telecopy, or by
     telephone, immediately confirmed by telecopy.

          "Capitalization" of any Person means the sum (without duplication) of
     (a) consolidated Debt of such Person and its consolidated Subsidiaries,
     plus (b) the aggregate amount of Guaranties by such Person and its
     consolidated Subsidiaries, plus (c) the consolidated common and preferred
     stockholders' equity of such Person and its consolidated Subsidiaries, plus
     (d) the cumulative amount by which stockholders" equity of such Person
     shall have been reduced by reason of non-cash write downs of long-term
     assets from and after the Effective Date.

          "Chase" means The Chase Manhattan Bank, a New York banking
     corporation.

          "Closing Date" has the meaning assigned to such term in Section 3.2.

          "Co-Documentation Agents" has the meaning assigned to such term in the
     preamble hereof.

          "Commitment" means as to any Lender, the obligation of such Lender to
     make Revolving Credit Advances to the Borrowers hereunder in an aggregate
     principal amount at any one time outstanding not to exceed the amount set
     forth opposite such Lender's name on Schedule I (as such Schedule I is
     amended from time to time pursuant to Section 9.7(c)), as such amount may
     be reduced from time to time in accordance with the provisions of this
     Agreement.

          "Commitment Expiration Date" has the meaning assigned to such term in
     Section 2.23(a).

          "Commitment Percentage" means as to any Lender at any time, the
     percentage which such Lender's Commitment then constitutes of the aggregate
     Commitments (or, at any time after the Commitments shall have expired or
     terminated, the percentage which the aggregate principal amount of such
     Lender's Advances then outstanding constitutes of the aggregate principal
     amount of the Advances then outstanding).

          "Company" has the meaning assigned to such term in the preamble
     hereof.

          "Contingent Guaranty" has the meaning assigned to such term in the
     definition of the term "Guaranty" contained in this Section 1.1.

          "Convert", "Conversion" and "Converted" each refers to a conversion of
     Advances of one Type into Advances of another Type pursuant to Section
     2.13, 2.14 or 2.18.

          "Current Reimbursement Obligations" means, with respect to any Person,
     non-contingent obligations of such Person to reimburse a bank or other
     Person in respect of

                                       5
<PAGE>   10

     amounts paid under a letter of credit or similar instrument that are paid
     on or prior to the fifth Business Day after the due date therefor.

          "Debt" means, as to any Person, all Indebtedness of such Person other
     than (a) any Project Financing of such Person, (b) in the case of the
     Company or a Subsidiary, any liabilities of the Company or such Subsidiary,
     as the case may be, under any Alternate Program, or any document executed
     by the Company or such Subsidiary, as the case may be, in connection
     therewith, (c) any obligations of the Company or a Subsidiary with respect
     to lease payments for the headquarters building of the Company located in
     Houston, Texas and (d) Current Reimbursement Obligations of such Person;
     provided, however, that for purposes of Article V, "Debt" shall not include
     up to an aggregate amount (determined without duplication of amount) of
     $200,000,000 of (i) the amount of optional payments in lieu of asset
     repurchase or other payments to similar effect, including extension or
     renewal payments, on off balance sheet leases and (ii) the amount of the
     purchase price for optional acquisition of such asset (in either case,
     calculated at the lower amount payable in respect of such asset under
     clause (i) or (ii) above).

          "Default" means any event that would constitute an Event of Default
     but for the requirement that notice be given or time elapse or both.

          "Dollars" and "$" means dollars in lawful currency of the United
     States of America.

          "Effective Date" has the meaning assigned to such term in Section 3.1.

          "Effective Federal Funds Rate" means, for any day, the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day which is a Business Day, the
     average of the quotations for such day on such transactions received by the
     Administrative Agent from three Federal funds brokers of recognized
     standing selected by it.

          "Eligible Assignee" means, with respect to any particular assignment
     under Section 9.7, any bank or other financial institution approved in
     writing by the Company expressly with respect to such assignment and,
     except as to such an assignment by Chase so long as Chase is the
     Administrative Agent hereunder, the Administrative Agent as an Eligible
     Assignee for purposes of this Agreement, provided that (i) neither the
     Administrative Agent's nor the Company's approval shall be unreasonably
     withheld and (ii) neither the Administrative Agent's nor the Company's
     approval shall be required if the assignee is another Lender or an
     Affiliate of the assigning Lender.

          "EPNGC" has the meaning assigned to such term in the preamble hereof.

                                       6
<PAGE>   11

          "EPTPC" means El Paso Tennessee Pipeline Co., a Delaware corporation.

          "EPTPC Facility" means the $3,000,000,000 Revolving Credit and
     Competitive Advance Facility Agreement, dated as of November 4, 1996, among
     EPTPC, the several financial institutions from time to time parties
     thereto, and The Chase Manhattan Bank, as administrative agent and CAF
     advance agent thereunder, as the same may be amended, modified or
     supplemented from time to time.

          "Equity Interests" means any capital stock, partnership, joint
     venture, member or limited liability or unlimited liability company
     interest, beneficial interest in a trust or similar entity or other equity
     interest or investment of whatever nature.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued from time to time thereunder.

          "ERISA Affiliate" means any Person who is a member of the Company's
     controlled group within the meaning of Section 4001(a)(14)(A) of ERISA.

          "Eurocurrency Liabilities" has the meaning assigned to that term in
     Regulation D of the Board of Governors of the Federal Reserve System, as in
     effect from time to time.

          "Eurodollar Rate" means, for any Interest Period for each Eurodollar
     Rate Advance comprising part of the same Borrowing, an interest rate per
     annum equal to the rate which appears on Page 3750 of the Telerate Service
     (or on any successor or substitute page of such service, or any successor
     to or substitute for such service providing rate quotations comparable to
     those currently provided on such page of such service, as determined by the
     Administrative Agent from time to time for purposes of providing quotations
     of interest rates applicable to Dollar deposits in the London interbank
     market) as at approximately 11:00 A.M. (London, England time) two Business
     Days before the first day of such Interest Period as the rate for Dollar
     deposits with a maturity comparable to such Interest Period; provided that
     if such rate is not available at such time for any reason, the Eurodollar
     Rate for such Borrowing for such Interest Period shall be the interest rate
     per annum equal to the average (rounded upward to the nearest whole
     multiple of 1/16 of 1% per annum, if such average is not such a multiple)
     of the rate per annum at which deposits in Dollars are offered by the
     principal office of each of the Reference Lenders in London, England, to
     prime banks in the London interbank market as at approximately 11:00 A.M.
     (London, England time) two Business Days before the first day of such
     Interest Period, in an approximate amount of each such Reference Lender's
     share of the relevant Borrowing for the applicable Interest Period. The
     Eurodollar Rate for the Interest Period for each Eurodollar Rate Advance
     comprising part of the same Borrowing, when being determined pursuant to
     the foregoing proviso clause, shall be determined by the Administrative
     Agent on the basis of applicable rates furnished to and received by the
     Administrative Agent from the Reference Lenders two Business

                                       7
<PAGE>   12

     Days before the first day of such Interest Period, subject, however, to the
     provisions of Section 2.13.

          "Eurodollar Rate Advance" means an Advance which bears interest
     determined by reference to the Eurodollar Rate, as provided in Section
     2.11(a)(ii).

          "Eurodollar Reserve Percentage" for any Lender for any Interest Period
     for any Eurodollar Rate Advance means the reserve percentage applicable
     during such Interest Period under regulations issued from time to time by
     the Board of Governors of the Federal Reserve System (or if more than one
     such percentage shall be so applicable, the daily average of such
     percentages for those days in such Interest Period during which any such
     percentage shall be so applicable) for determining the maximum reserve
     requirement (including, but not limited to, any emergency, supplemental or
     other marginal reserve requirement) for such Lender with respect to
     liabilities or assets consisting of or including Eurocurrency Liabilities
     having a term equal to such Interest Period.

          "Events of Default" has the meaning assigned to such term in Section
     7.1.

          "Excluded Acquisition Debt" means (a) Debt, Guaranties or
     reimbursement obligations of any Business Entity acquired by the Company or
     any of its Subsidiaries and which Debt, Guaranties or reimbursement
     obligations exist immediately prior to such acquisition (provided that (i)
     such Debt, Guaranties or reimbursement obligations are not incurred solely
     in anticipation of such acquisition and (ii) immediately prior to such
     acquisition such Business Entity is not a Subsidiary of the Company), (b)
     Debt, Guaranties or reimbursement obligations of EPTPC and its Subsidiaries
     in existence on the date of the merger of El Paso Tennessee Pipeline
     Company with El Paso Merger Company or (c) Debt, Guaranties or
     reimbursement obligations in respect of any asset acquired by the Company
     or any of its Subsidiaries and which Debt, Guaranties or reimbursement
     obligations exists immediately prior to such acquisition (provided that (i)
     such Debt, Guaranties or reimbursement obligations are not incurred solely
     in anticipation of such acquisition and (ii) immediately prior to such
     acquisition such asset is not an asset of the Company or any of its
     Subsidiaries).

          "Existing 364-Day Facility" means the 364-Day Revolving Credit and
     Competitive Advance Facility Agreement dated as of August 16, 1999, as the
     same has been or may be amended, supplemented or otherwise modified prior
     to the Closing Date, among the Company, EPNGC, Tennessee the several
     financial institutions from time to time parties thereto, Chase, as
     Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro
     Bank, N.V., as Co-Documentation Agents and Bank of America, N.A., as
     Syndication Agent, as the same has been and may be amended, supplemented
     and modified from time to time.

          "Existing 5-Year Facility" means the $750,000,000 5-Year Revolving
     Credit and Competitive Advance Facility Agreement, dated as of October 29,
     1997, among the Company, EPNGC, Tennessee, the banks and other lenders
     parties thereto, Chase as

                                       8
<PAGE>   13

     Administrative Agent and CAF Advance Agent, Citibank, N.A., as
     Documentation Agent and Morgan Guaranty Trust Company of New York, as
     Syndication Agent, as the same has been and may be amended, supplemented
     and modified from time to time.

          "Exposure" means (a) with respect to an Objecting Lender at any time,
     the aggregate outstanding principal amount of its Revolving Credit Advances
     and (b) with respect to any other Lender at any time, the maximum amount of
     the Commitment of such Lender.

          "Extension Request" means each request by the Borrowers made pursuant
     to Section 2.23 for the Lenders to extend the Stated Termination Date,
     which shall contain the information in respect of such extension specified
     in Exhibit M and shall be delivered to the Administrative Agent in writing.

          "Facility Fee Commencement Date" means the date hereof.

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

          "Fixed Rate CAF Advance" means any CAF Advance made pursuant to a
     Fixed Rate CAF Advance Request.

          "Fixed Rate CAF Advance Request" means any CAF Advance Request
     requesting the CAF Advance Lenders to offer to make CAF Advances at a fixed
     rate (as opposed to a rate composed of the Applicable LIBO Rate plus (or
     minus) a margin).

          "GAAP" means generally accepted accounting principles in the United
     States of America, as in effect from time to time.

          "Guaranty", "Guaranteed" and "Guaranteeing" each means any act by
     which any Person assumes, guarantees, endorses or otherwise incurs direct
     or contingent liability in connection with, or agrees to purchase or
     otherwise acquire or otherwise assures a creditor against loss in respect
     of, any Debt or Project Financing of any Person other than the Company or
     any of its consolidated Subsidiaries (excluding (a) any liability by
     endorsement of negotiable instruments for deposit or collection or similar
     transactions in the ordinary course of business, (b) any liability in
     connection with obligations of the Company, any of its consolidated
     Subsidiaries, including obligations under any conditional sales agreement,
     equipment trust financing or equipment lease, and (c) any such act in
     connection with a Project Financing that either (i) guarantees to the
     provider of such Project Financing or any other Person performance of the
     acquisition, improvement, installation, design, engineering, construction,
     development, completion, maintenance or operation of, or otherwise affects
     any such act in respect of, all or any portion of the project that is
     financed by such Project Financing or performance by a Project Financing
     Subsidiary of certain obligations to Persons other than the provider of
     such Project Financing, except during any period, and then only to the
     extent, that such

                                       9
<PAGE>   14

     guaranty is a guaranty of payment of such Project Financing (other than a
     guaranty of payment of the type referred to in subclause (ii) below) or
     (ii) is contingent upon, or the obligation to pay or perform under which is
     contingent upon, the occurrence of any event other than or in addition to
     the passage of time or any Project Financing becoming due (any such act
     referred to in this clause (c) being a "Contingent Guaranty"); provided,
     however, that for purposes of this definition the liability of the Company
     or any of its Subsidiaries with respect to any obligation as to which a
     third party or parties are jointly, or jointly and severally, liable as a
     guarantor or otherwise as contemplated hereby and have not defaulted on its
     or their portions thereof, shall be only its pro rata portion of such
     obligation.

          "Indebtedness" of any Person means, without duplication (a)
     indebtedness of such Person for borrowed money, (b) obligations of such
     Person (other than any portion of any trade payable obligation of such
     Person which shall not have remained unpaid for 91 days or more from the
     original due date of such portion) to pay the deferred purchase price of
     property or services, and (c) obligations of such Person as lessee under
     leases which shall have been or should be, in accordance with GAAP recorded
     as capital leases, except that where such indebtedness or obligation of
     such Person is made jointly, or jointly and severally, with any third party
     or parties other than any consolidated Subsidiary of such Person, the
     amount thereof for the purposes of this definition only shall be the pro
     rata portion thereof payable by such Person, so long as such third party or
     parties have not defaulted on its or their joint and several portions
     thereof.

          "Indemnified Party" means any or all of the Lenders, the
     Administrative Agent and the CAF Advance Agent.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
     part of the same Borrowing, the period beginning on the date of such
     Advance or the date of the Conversion of any Advance into such an Advance
     and ending on the last day of the period selected by the applicable
     Borrower pursuant to the provisions below and, thereafter, each subsequent
     period commencing on the last day of the immediately preceding Interest
     Period and ending on the last day of the period selected by the applicable
     Borrower pursuant to the provisions below. The duration of each such
     Interest Period shall be one, two, three or six months, or, subject to
     availability to each Lender, nine or twelve months, in each case as the
     applicable Borrower may, upon notice received by the Administrative Agent
     not later than 12:00 noon (New York City time) on the third Business Day
     prior to the first day of such Interest Period with respect to Eurodollar
     Rate Advances, select; provided, however, that:

               (a) the duration of any Interest Period which commences before
          the Termination Date and would otherwise end after the Termination
          Date shall end on the Termination Date;

               (b) if the last day of such Interest Period would otherwise occur
          on a day which is not a Business Day, such last day shall be extended
          to the

                                       10
<PAGE>   15

          next succeeding Business Day, except if such extension would cause
          such last day to occur in a new calendar month, then such last day
          shall occur on the next preceding Business Day;

               (c) Interest Periods commencing on the same date for Advances
          comprising the same Borrowing shall be of the same duration;

               (d) with respect to Advances made by an Objecting Lender, no
          Interest Period with respect to such Advances shall end after such
          Objecting Lender's Commitment Expiration Date; and

               (e) any Interest Period which 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, subject to clause (a) above, end on the last Business
          Day of a calendar month.

          "Joinder Agreement" means a Joinder Agreement, substantially in the
     form of Exhibit J hereto, duly executed and delivered by the Company and
     the Borrowing Subsidiary party thereto.

          "Lenders" has the meaning assigned to such term in the preamble
     hereof.

          "LIBO Rate CAF Advance" means any CAF Advance made pursuant to a LIBO
     Rate CAF Advance Request.

          "LIBO Rate CAF Advance Request" means any CAF Advance Request
     requesting the CAF Advance Lenders to offer to make CAF Advances at an
     interest rate equal to the Applicable LIBO Rate plus (or minus) a margin.

          "Lien" means any lien, security interest or other charge or
     encumbrance, or any assignment of the right to receive income, or any other
     type of preferential arrangement, in each case to secure any Indebtedness
     or any Guaranty of any Person.

          "Majority Lenders" means Lenders the Commitment Percentages of which
     aggregate at least 51%, provided, that at any time after the Commitment
     Expiration Date with respect to any Objecting Lender (but prior to the
     termination of all the Commitments), "Majority Lenders" shall mean Lenders
     whose Exposure aggregates at least 51% of the aggregate Exposure of all the
     Lenders.

          "Margin Stock" means "margin stock" as defined in Regulation U of the
     Board of Governors of the Federal Reserve System, as in effect from time to
     time.

          "Material Adverse Effect" means a material adverse effect on the
     financial condition or operations of the Company and its consolidated
     Subsidiaries on a consolidated basis.

                                       11
<PAGE>   16

          "Material Subsidiary" means any Subsidiary of the Company (other than
     a Project Financing Subsidiary) that itself (on an unconsolidated,
     stand-alone basis) owns in excess of 10% of the book value of the
     consolidated assets of the Company and its consolidated Subsidiaries.

          "Mojave" means Mojave Pipeline Company.

          "Moody's Bond Rating", with respect to any Borrower, means for any day
     the Bond Rating of such Borrower, if any, established by Moody's Investors
     Service, Inc. as in effect at 11:00 A.M., New York City time, on such day.

          "Multiemployer Plan" means a "multiemployer plan" as defined in
     Section 4001(a)(3) of ERISA to which the Company or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions and in respect of which the Company or an ERISA Affiliate has
     any liability (contingent or otherwise), such plan being maintained
     pursuant to one or more collective bargaining agreements.

          "Multiple Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, which (a) is maintained for employees of the
     Company or an ERISA Affiliate and at least one Person other than the
     Company and its ERISA Affiliates or (b) was so maintained and in respect of
     which the Company or an ERISA Affiliate could have liability under Section
     4064 or 4069 of ERISA in the event such plan has been or were to be
     terminated.

          "Net Worth" means, as of any date of determination, the sum of the
     preferred stock and stockholders' equity of the Company as shown on the
     most recent consolidated balance sheet of the Company delivered pursuant to
     Section 5.3 plus the cumulative amount by which stockholders" equity of the
     Company shall have been reduced by reason of non-cash write-downs of long
     term assets from and after the Effective Date.

          "Note" has the meaning assigned to such term in Section 2.3(d).

          "Notice of Borrowing" has the meaning specified in Section 2.2(a).

          "Obligations" means the collective reference to the unpaid principal
     of and interest on the Advances and the Notes and all other financial
     liabilities of the Borrowers to the Administrative Agent, the CAF Advance
     Agent and the Lenders (including interest accruing at the then applicable
     rate provided in this Agreement after the maturity of the Advances and
     interest accruing at the then applicable rate provided in this Agreement
     after the filing of any petition in bankruptcy, or the commencement of any
     insolvency, reorganization or like proceeding, relating to any Borrower
     whether or not a claim for post-filing or post-petition interest is allowed
     in such proceeding), whether direct or indirect, absolute or contingent,
     due or to become due, or now existing or hereafter

                                       12
<PAGE>   17

     incurred, which may arise under, out of, or in connection with, this
     Agreement or the Notes, in each case whether on account of principal,
     interest, reimbursement obligations, fees, indemnities, costs, expenses or
     otherwise (including all fees and disbursements of counsel to the
     Administrative Agent, the CAF Advance Agent or to the Lenders that are
     required to be paid by any Borrower pursuant to this Agreement).

          "Objecting Lenders" has the meaning assigned to such term in Section
     2.23(a).

          "Other Taxes" has the meaning assigned to such term in Section
     2.20(b).

          "Party" has the meaning assigned to such term in Section 9.8.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Permitted Claims" has the meaning assigned to such term in Section
     9.9(a).

          "Permitted Liens" means:

          (i) inchoate Liens and charges imposed by law and incidental to
     construction, maintenance, development or operation of properties, or the
     operation of business, in the ordinary course of business if payment of the
     obligation secured thereby is not yet overdue or if the validity or amount
     of which is being contested in good faith by the Company or any of its
     Subsidiaries;

          (ii) Liens for taxes, assessments, obligations under workers"
     compensation or other social security legislation or other governmental
     requirements, charges or levies, in each case not yet overdue;

          (iii) Liens reserved in any oil, gas or other mineral lease entered
     into in the ordinary course of business for rent, royalty or delay rental
     under such lease and for compliance with the terms of such lease;

          (iv) easements, servitudes, rights-of-way and other rights,
     exceptions, reservations, conditions, limitations, covenants and other
     restrictions that do not materially interfere with the operation, value or
     use of the properties affected thereby;

          (v) conventional provisions contained in any contracts or agreements
     affecting properties under which the Company or any of its Subsidiaries is
     required immediately before the expiration, termination or abandonment of a
     particular property to reassign to such Person"s predecessor in title all
     or a portion of such Person"s rights, titles and interests in and to all or
     portion of the such property;

          (vi) any Lien reserved in a grant or conveyance in the nature of a
     farm-out or conditional assignment to the Company or any of its
     Subsidiaries entered into in the

                                       13
<PAGE>   18

     ordinary course of business on reasonable terms to secure undertakings of
     the Company or any such Subsidiary in such grant or conveyance;

          (vii) any Lien consisting of (A) statutory landlord"s liens under
     leases to which the Company or any of its Subsidiaries is a party or other
     Liens on leased property reserved in leases thereof for rent or for
     compliance with the terms of such leases, (B) rights reserved to or vested
     in any municipality or governmental, statutory or public authority to
     control or regulate any property of the Company or any of its Subsidiaries,
     or to use such property in any manner which does not materially impair the
     use of such property for the purposes for which it is held by the Company
     or any such Subsidiary, (C) obligations or duties to any municipality or
     public authority with respect to any franchise, grant, license, lease or
     permit and the rights reserved or vested in any governmental authority or
     public utility to terminate any such franchise, grant, license, lease or
     permit or to condemn or expropriate any property, and (D) zoning laws and
     ordinances and municipal regulations;

          (viii) any Lien on any assets (including Equity Interests and other
     obligations) securing Indebtedness or other obligations incurred or assumed
     for the purpose of financing all or any part of the cost of acquiring,
     improving, installing, designing, engineering, developing (including
     drilling), or constructing such assets, provided that such Lien attaches to
     such assets concurrently with or within 365 days after the acquisition or
     completion of development, construction or installation thereof or
     improvement thereto; and

          (ix) the creation of interests in property of the character commonly
     referred to as a "royalty interest" or "overriding royalty interest",
     production payments, farmouts, leases, subleases, rights of way and other
     easements, participations, joint venture, joint operating, unitization,
     pooling and communitization agreements, or other similar transactions in
     the ordinary course of business.

          "Person" means an individual, a Business Entity, or a country or any
     political subdivision thereof or any agency or instrumentality of such
     country or subdivision.

          "Plan" means a Single Employer Plan or a Multiple Employer Plan.

          "Prime Rate" means the rate of interest per annum publicly announced
     from time to time by Chase as its prime rate in effect at its principal
     office in New York City. The Prime Rate is not intended to be the lowest
     rate of interest charged by Chase in connection with extensions of credit
     to debtors.

          "Principal Subsidiary" means, at any time, any Subsidiary of the
     Company (other than a Project Financing Subsidiary) either (a) having
     assets that are, or owning Subsidiaries with assets that together with its
     assets are, at such time greater than or equal to 5% of the consolidated
     assets of the Company and its consolidated Subsidiaries at such time or (b)
     constituting a Borrowing Subsidiary.

                                       14
<PAGE>   19

          "Process Agent" has the meaning specified in Section 9.9(a).

          "Project Financing" means any Indebtedness incurred to finance or
     refinance the acquisition, improvement, installation, design, engineering,
     construction, development, completion, maintenance or operation of, or
     otherwise in respect of, all or any portion of any project, or any asset
     related thereto, and any Guaranty with respect thereto, other than any
     portion of such Indebtedness or Guaranty permitting or providing for
     recourse against the Company or any of its Subsidiaries other than (a)
     recourse to the Equity Interests in, Indebtedness or other obligations of,
     or assets of, one or more Project Financing Subsidiaries, and (b) such
     recourse as exists under any Contingent Guaranty.

          "Project Financing Subsidiary" means any Subsidiary of the Company
     whose principal purpose is to incur Project Financing, or to become a
     direct or indirect partner, member or other equity participant or owner in
     a Business Entity so created, and substantially all the assets of which
     Subsidiary or Business Entity are limited to those assets being financed
     (or to be financed), or the operation of which is being financed (or to be
     financed), in whole or in part by a Project Financing or to Equity
     Interests in, or Indebtedness or other obligations of, one or more other
     such Subsidiaries or Business Entities or to Indebtedness or other
     obligations of the Company or its Subsidiaries or other Persons.

          "Rating Agency" means any of Moody"s Investors Service, Inc. and
     Standard & Poor"s Ratings Group; collectively the "Rating Agencies".

          "Receivables Purchase and Sale Agreement" means the collective
     reference to (a) the Receivables Purchase and Sale Agreement dated as of
     January 14, 1992 among EPNGC, CIESCO L.P., a New York limited partnership,
     Corporate Asset Funding Company, a Delaware corporation and Citicorp North
     America, Inc., as agent, as amended as of the date hereof, and (b) the
     Amended and Restated Receivables Sale Agreement dated as of December 31,
     1996 among El Paso Energy Credit Corporation, Asset Securitization
     Cooperative Corporation and Canadian Imperial Bank of Commerce, as
     administrative agent, as such Agreement may be amended, supplemented,
     restated or otherwise modified from time to time, provided that no such
     amendment, supplement, restatement or modification shall change the scope
     of such Agreement from that of a receivables securitization transaction.

          "Reference Lenders" means Chase, Bank of America, N.A., Citibank, N.A.
     and ABN Amro, N.V..

          "Register" has the meaning specified in Section 9.7(c).

          "Required Lenders" means Lenders (a) that are not Objecting Lenders
     with respect to any previous Extension Request and (b) that have Commitment
     Percentages

                                       15
<PAGE>   20

     aggregating at least 66-2/3% of the aggregate Commitment Percentages of
     such non-Objecting Lenders.

          "Revolving Credit Advances" has the meaning assigned to such term in
     Section 2.1.

          "S&P Bond Rating", with respect to any Borrower, means for any day the
     Bond Rating of such Borrower, if any, established by Standard & Poor's
     Ratings Group as in effect at 11:00 A.M., New York City time, on such day.

          "Single Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
     Company or an ERISA Affiliate and no Person other than the Company and its
     ERISA Affiliates or (b) was so maintained and in respect of which the
     Company or an ERISA Affiliate could have liability under Section 4069 of
     ERISA in the event such plan has been or were to be terminated.

          "Sonat Agreement" means the Credit Agreement dated as of April 15,
     1999 among Sonat Inc., the banks party thereto, Chase, as Administrative
     Agent thereunder, Bank of America National Trust and Savings Association,
     as Syndication Agent thereunder and Suntrust Bank, Atlanta, as
     Documentation Agent thereunder, as amended, supplemented or otherwise
     modified from time to time.

          "Stated Termination Date" means August 4, 2003 or such later date as
     shall be determined pursuant to the provisions of Section 2.23 with respect
     to non-Objecting Lenders.

          "Subsidiary" means, as to any Person, any Business Entity of which
     shares of stock or other Equity Interests having ordinary voting power
     (other than stock or such other Equity Interests having such power only by
     reason of the happening of a contingency) to elect a majority of the board
     of directors or other managers of such Business Entity are at the time
     owned, directly or indirectly through one or more Subsidiaries, or both, by
     such Person. Unless otherwise qualified, all references to a "Subsidiary"
     or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or
     Subsidiaries of the Company.

          "Syndication Agent" has the meaning assigned to such term in the
     preamble hereof.

          "Taxes" has the meaning assigned to such term in Section 2.20(a).

          "Tennessee" has the meaning assigned to such term in the preamble
     hereof, and its successors.

                                       16
<PAGE>   21

          "Termination Date" means the earlier of (a) the Stated Termination
     Date and (b) the date of termination in whole of the Commitments pursuant
     to Section 2.9 or 7.1.

          "Termination Event" means (a) a "reportable event," as such term is
     described in Section 4043 of ERISA (other than a "reportable event" not
     subject to the provision for 30-day notice to the PBGC under subsection
     .11, .12, .13, .14, .16, .18, .19 or .20 of PBGC Reg. " 2615), or an event
     described in Section 4062(e) of ERISA, or (b) the withdrawal of the Company
     or any ERISA Affiliate from a Multiple Employer Plan during a plan year in
     which it was a "substantial employer," as such term is defined in Section
     4001(a)(2) of ERISA or the incurrence of liability by the Company or any
     ERISA Affiliate under Section 4064 of ERISA upon the termination of a
     Multiple Employer Plan, or (c) the filing of a notice of intent to
     terminate a Plan or the treatment of a Plan amendment as a termination
     under Section 4041 of ERISA, or (d) the institution of proceedings to
     terminate a Plan by the PBGC under Section 4042 of ERISA, or (e) the
     conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
     creation of a lien upon property or rights to property of the Company or
     any ERISA Affiliate for failure to make a required payment to a Plan are
     satisfied, or (f) the adoption of an amendment to a Plan requiring the
     provision of security to such Plan, pursuant to Section 307 of ERISA, or
     (g) the occurrence of any other event or the existence of any other
     condition which would reasonably be expected to result in the termination
     of, or the appointment of a trustee to administer, any Plan under Section
     4042 of ERISA.

          "364-Day Facility" means the $2,000,000,000 364-Day Revolving Credit
     and Competitive Advance Facility Agreement, dated as of August 4, 2000,
     among the Company, EPNGC, Tennessee, the banks and other lenders parties
     thereto, Chase, as Administrative Agent and CAF Advance Agent, Citibank,
     N.A. and ABN Amro Bank, N.V., as Co-Documentation Agents and Bank of
     America, N.A., as Syndication Agent, as the same has been and may be
     amended, supplemented and modified from time to time.

          "Type" means (a) as to any Revolving Credit Advance, its nature as a
     Base Rate Advance or a Eurodollar Rate Advance and (b) as to any CAF
     Advance, its nature as a Fixed Rate CAF Advance or a LIBO Rate CAF Advance.

          "Withdrawal Liability" has the meaning given such term under Part 1 of
     Subtitle E of Title IV of ERISA.

          SECTION I.2 Computation of Time Periods. Unless otherwise stated in
this Agreement, in the computation of a period of time from a specified date to
a later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding."

          SECTION I.3 Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP either (a) consistent
with those principles applied in the preparation of the financial statements
referred to in Section 4.1(e) or (b) not so materially inconsistent with such
principles that a covenant contained in Section 5.1 or 5.2 would

                                       17
<PAGE>   22

be calculated or construed in a materially different manner or with materially
different results than if such covenant were calculated or construed in
accordance with clause (a) of this Section 1.3. "Include", "includes" and
"including" shall be deemed to be followed by "without limitation" whether or
not they are in fact followed by such words or words of like import. References
to any agreement or contract are to such agreement or contract as amended,
modified or supplemented from time to time in accordance with the terms hereof
and thereof.

          SECTION I.4 References. The words "hereof", "herein" and "hereunder"
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article, Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

          SECTION II.1 The Revolving Credit Advances. Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make revolving
credit advances ("Revolving Credit Advances") to the Borrowers or any one or
more of them from time to time on any Business Day during the period from the
date hereof to and including the Termination Date in an aggregate amount not to
exceed at any time outstanding the amount of such Lender's Commitment; provided
that the aggregate amount of the Advances (other than Advances of Objecting
Lenders) outstanding shall not at any time exceed the aggregate amount of the
Commitments. Each Borrowing shall be in an aggregate amount of $5,000,000 in the
case of a Borrowing comprised of Base Rate Advances and $20,000,000 in the case
of a Borrowing comprised of Eurodollar Rate Advances, or, in each case, an
integral multiple of $1,000,000 in excess thereof (or, in the case of a
Borrowing of Base Rate Advances, the aggregate unused Commitments, if less) and
shall consist of Revolving Credit Advances of the same Type made on the same day
by the Lenders ratably according to their respective Commitments. Within the
limits of each Lender's Commitment, any Borrower may make more than one
Borrowing on any Business Day and may borrow, repay pursuant to Section 2.10 or
prepay pursuant to Section 2.15, and reborrow under this Section 2.1.

          SECTION II.2 Making the Revolving Credit Advances. (a) Each Borrowing
of Revolving Credit Advances shall be made on notice by the Company on its own
behalf or the Company on behalf of another Borrower, to the Administrative Agent
(a "Notice of Borrowing") received by the Administrative Agent, (i) in the case
of a proposed Borrowing comprised of Base Rate Advances, not later than 10:00
A.M. (New York City time) on the Business Day of such proposed Borrowing and
(ii) in the case of a proposed Borrowing comprised of Eurodollar Rate Advances,
not later than 12:00 noon (New York City time) on the third Business Day prior
to the date of such proposed Borrowing. Each Notice of Borrowing shall be by
telecopy or telephone (and if by telephone, confirmed promptly by telecopier),
in substantially the form of Exhibit B, specifying therein the requested (A)
Borrower, (B) date of such Borrowing, (C) Type of Revolving Credit Advances
comprising such Borrowing, (D) aggregate amount of such Borrowing, and (E) in
the case of a Borrowing comprised of Eurodollar Rate Advances, the

                                       18
<PAGE>   23

initial Interest Period for each such Advance. Each Lender shall, before 1:00
P.M. (New York City time) on the date of such Borrowing, make available to the
Administrative Agent at its address at 270 Park Avenue, New York, New York,
10017, Reference: El Paso Energy Corporation, or at such other address
designated by notice from the Administrative Agent to the Lenders pursuant to
Section 9.2, in same day funds, such Lender's ratable portion of such Borrowing.
Immediately after the Administrative Agent's receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the applicable Borrower
at Chase, 270 Park Avenue, New York, New York, 10017, Account No. 323291503,
Reference: El Paso Energy Corporation, or at such other account of the
applicable Borrower maintained by the Administrative Agent (or any successor
Administrative Agent) designated by the applicable Borrower and agreed to by the
Administrative Agent (or such successor Administrative Agent), in same day
funds.

          (b) Each Notice of Borrowing shall be irrevocable and binding on the
applicable Borrower. In the case of any Borrowing which the related Notice of
Borrowing specified is to be comprised of Eurodollar Rate Advances, if such
Advances are not made as a result of any failure to fulfill on or before the
date specified for such Borrowing the applicable conditions set forth in Article
III, the applicable Borrower shall indemnify each Lender against any loss, cost
or expense incurred by such Lender as a result of such failure, including, any
loss, cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund the Advance to be made
by such Lender as part of such Borrowing.

          (c) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.2 and the Administrative Agent
may, in reliance upon such assumption, make available to the applicable Borrower
on such date a corresponding amount. If and to the extent such Lender shall not
have so made such ratable portion available to the Administrative Agent, such
Lender and the applicable Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to
the applicable Borrower until the date such amount is repaid to the
Administrative Agent, at the Effective Federal Funds Rate for such day. If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender's Advance to the applicable
Borrower as part of such Borrowing for purposes of this Agreement.

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

                                       19
<PAGE>   24

          SECTION II.3 Evidence of Debt. (a) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing
indebtedness of each Borrower to such Lender resulting from each Revolving
Credit Advance of such Lender to such Borrower from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time in respect of such Revolving Credit Advance.

          (b) The Administrative Agent shall maintain the Register pursuant to
Section 9.7(c), and a subaccount therein for each Lender, in which shall be
recorded (i) the amount of each Revolving Credit Advance made hereunder, the
Type thereof and each Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from each
Borrower on account of such Revolving Credit Advance to each Lender hereunder
and (iii) both the amount of any sum received by the Administrative Agent
hereunder from each Borrower and each Lender's share thereof.

          (c) The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 2.3(a) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the
obligation of each Borrower to repay (with applicable interest) the Revolving
Credit Advances made to each such Borrower by such Lender in accordance with the
terms of this Agreement.

          (d) Each Borrower agrees that, upon the request to the Administrative
Agent by any Lender, such Borrower will execute and deliver to such Lender a
promissory note of such Borrower evidencing the Revolving Credit Advances of
such Lender to such Borrower, substantially in the form of Exhibit A with
appropriate insertions as to date and principal amount (a "Note").

          SECTION II.4 CAF Advances. Subject to the terms and conditions of this
Agreement, the Borrowers or any one or more of them may borrow CAF Advances from
time to time during the CAF Advance Availability Period on any Business Day. The
Company shall, in consultation with the CAF Advance Agent, designate Lenders
from time to time as CAF Advance Lenders by written notice to the CAF Advance
Agent. The CAF Advance Agent shall transmit each such notice of designation
promptly to each designated CAF Advance Lender. CAF Advances shall be borrowed
in amounts such that the aggregate amount of Advances outstanding at any time
shall not exceed the aggregate amount of the Commitments at such time. Any CAF
Advance Lender may make CAF Advances in amounts which, individually and together
with the aggregate amount of other Advances of such CAF Advance Lender, exceed
such CAF Advance Lender's Commitment, and such CAF Advance Lender's CAF Advances
shall not be deemed to utilize such CAF Advance Lender's Commitment. Within the
limits and on the conditions hereinafter set forth with respect to CAF Advances,
the Borrowers from time to time may borrow, repay and reborrow CAF Advances.

          SECTION II.5 Procedure for CAF Advance Borrowings. (a) A Borrower, or
the Company on behalf of a Borrower, shall request CAF Advances by delivering a
CAF Advance

                                       20
<PAGE>   25

Request to the CAF Advance Agent, not later than 12:00 Noon (New York City time)
four Business Days prior to the date of the proposed Borrowing (in the case of a
LIBO Rate CAF Advance Request), and not later than 10:00 A.M. (New York City
time) one Business Day prior to the date of the proposed Borrowing (in the case
of a Fixed Rate CAF Advance Request). Each CAF Advance Request may solicit bids
for CAF Advances in an aggregate principal amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof and having not more than five
alternative maturity dates. The maturity date for each CAF Advance shall be not
less than 7 days nor more than 360 days after the date of the Borrowing therefor
(and in any event shall be not later than the Stated Termination Date); provided
that each LIBO Rate CAF Advance shall mature one, two, three or six months or,
if available, nine or twelve months after the date of the Borrowing therefor.
The CAF Advance Agent shall notify each CAF Advance Lender promptly by telecopy
of the contents of each CAF Advance Request received by the CAF Advance Agent.

          (b) In the case of a LIBO Rate CAF Advance Request, upon receipt of
notice from the CAF Advance Agent of the contents of such CAF Advance Request,
each CAF Advance Lender may elect, in its sole discretion, to offer irrevocably
to make one or more CAF Advances at the Applicable LIBO Rate plus (or minus) a
margin determined by such CAF Advance Lender in its sole discretion for each
such CAF Advance. Any such irrevocable offer shall be made by delivering a CAF
Advance Offer to the CAF Advance Agent, before 10:30 A.M. (New York City time)
on the day that is three Business Days before the date of the proposed
Borrowing, setting forth:

          (i) the maximum amount of CAF Advances for each maturity date and the
     aggregate maximum amount of CAF Advances for all maturity dates which such
     CAF Advance Lender would be willing to make (which amounts may, subject to
     Section 2.4, exceed such CAF Advance Lender's Commitment); and

          (ii) the margin above or below the Applicable LIBO Rate at which such
     CAF Advance Lender is willing to make each such CAF Advance.

The CAF Advance Agent shall advise the Company and the applicable Borrower
before 11:00 A.M. (New York City time) on the date which is three Business Days
before the proposed date of the Borrowing of the contents of each such CAF
Advance Offer received by it. If the CAF Advance Agent, in its capacity as a CAF
Advance Lender, shall elect, in its sole discretion, to make any such CAF
Advance Offer, it shall advise the Company and the applicable Borrower of the
contents of its CAF Advance Offer before 10:15 A.M. (New York City time) on the
date which is three Business Days before the proposed date of the Borrowing.

          (c) In the case of a Fixed Rate CAF Advance Request, upon receipt of
notice from the CAF Advance Agent of the contents of such CAF Advance Request,
each CAF Advance Lender may elect, in its sole discretion, to offer irrevocably
to make one or more CAF Advances at a rate of interest determined by such CAF
Advance Lender in its sole discretion for each such CAF Advance. Any such
irrevocable offer shall be made by delivering a CAF Advance Offer to the CAF
Advance Agent before 9:30 A.M. (New York City time) on the proposed date of the
Borrowing, setting forth:

                                       21
<PAGE>   26

          (i) the maximum amount of CAF Advances for each maturity date, and the
     aggregate maximum amount for all maturity dates, which such CAF Advance
     Lender would be willing to make (which amounts may, subject to Section 2.4,
     exceed such CAF Advance Lender's Commitment); and

          (ii) the rate of interest at which such CAF Advance Lender is willing
     to make each such CAF Advance.

The CAF Advance Agent shall advise the Company and the applicable Borrower
before 10:00 A.M. (New York City time) on the proposed date of the Borrowing of
the contents of each such CAF Advance Offer received by it. If the CAF Advance
Agent, in its capacity as a CAF Advance Lender, shall elect, in its sole
discretion, to make any such CAF Advance Offer, it shall advise the Company and
the applicable Borrower of the contents of its CAF Advance Offer before 9:15
A.M. (New York City time) on the proposed date of the Borrowing.

          (d) Before 11:30 A.M. (New York City time) three Business Days before
the proposed date of the Borrowing (in the case of CAF Advances requested by a
LIBO Rate CAF Advance Request) and before 10:30 A.M. (New York City time) on the
proposed date of the Borrowing (in the case of CAF Advances requested by a Fixed
Rate CAF Advance Request), the Company, in its absolute discretion, shall:

          (i) cancel such CAF Advance Request by giving the CAF Advance Agent
     telephone notice to that effect, or

          (ii) by giving telephone notice to the CAF Advance Agent (immediately
     confirmed by delivery to the CAF Advance Agent of a CAF Advance
     Confirmation in writing or by telecopy) (A) subject to the provisions of
     Section 2.5(e), accept one or more of the offers made by any CAF Advance
     Lender or CAF Advance Lenders pursuant to Section 2.5(b) or Section 2.5(c),
     as the case may be, of the amount of CAF Advances for each relevant
     maturity date and (B) reject any remaining offers made by CAF Advance
     Lenders pursuant to Section 2.5(b) or Section 2.5(c), as the case may be.

          (e) The Company's acceptance of CAF Advances in response to any CAF
Advance Request shall be subject to the following limitations:

          (i) the amount of CAF Advances accepted for each maturity date
     specified by any CAF Advance Lender in its CAF Advance Offer shall not
     exceed the maximum amount for such maturity date specified in such CAF
     Advance Offer;

          (ii) the aggregate amount of CAF Advances accepted for all maturity
     dates specified by any CAF Advance Lender in its CAF Advance Offer shall
     not exceed the aggregate maximum amount specified in such CAF Advance Offer
     for all such maturity dates;

                                       22
<PAGE>   27

          (iii) the Company may not accept offers for CAF Advances for any
     maturity date in an aggregate principal amount in excess of the maximum
     principal amount requested in the related CAF Advance Request; and

          (iv) if the Company accepts any of such offers, it must accept offers
     based solely upon pricing for such relevant maturity date and upon no other
     criteria whatsoever and if two or more CAF Advance Lenders submit offers
     for any maturity date at identical pricing and the Company accepts any of
     such offers but does not wish to (or by reason of the limitations set forth
     in Section 2.4 or in Section 2.5(e)(iii), cannot) borrow the total amount
     offered by such CAF Advance Lenders with such identical pricing, the
     Company shall accept offers from all of such CAF Advance Lenders in amounts
     allocated among them pro rata according to the amounts offered by such CAF
     Advance Lenders (or as nearly pro rata as shall be practicable after giving
     effect to the requirement that CAF Advances made by a CAF Advance Lender on
     a date of the Borrowing for each relevant maturity date shall be in a
     principal amount of $5,000,000 or an integral multiple of $1,000,000 in
     excess thereof; provided that if the number of CAF Advance Lenders that
     submit offers for any maturity date at identical pricing is such that,
     after the Company accepts such offers pro rata in accordance with the
     foregoing, the CAF Advance to be made by such CAF Advance Lenders would be
     less than $5,000,000 principal amount, the number of such CAF Advance
     Lenders shall be reduced by the CAF Advance Agent by lot until the CAF
     Advances to be made by such remaining CAF Advance Lenders would be in a
     principal amount of $5,000,000 or an integral multiple of $1,000,000 in
     excess thereof).

          (f) If the Company notifies the CAF Advance Agent that a CAF Advance
Request is cancelled pursuant to Section 2.5(d)(i), the CAF Advance Agent shall
give prompt telephone notice thereof to the CAF Advance Lenders.

          (g) If the Company accepts pursuant to Section 2.5(d)(ii) one or more
of the offers made by any CAF Advance Lender or CAF Advance Lenders, the CAF
Advance Agent promptly shall notify each CAF Advance Lender which has made such
a CAF Advance Offer of (i) the aggregate amount of such CAF Advances to be made
on such Borrowing Date for each maturity date and (ii) the acceptance or
rejection of any offers to make such CAF Advances made by such CAF Advance
Lender. Before 1:00 P.M. (New York City time) on the date of the Borrowing
specified in the applicable CAF Advance Request, each CAF Advance Lender whose
CAF Advance Offer has been accepted shall make available to the Administrative
Agent at its office set forth in Section 9.2 the amount of CAF Advances to be
made by such CAF Advance Lender, in same day funds. The Administrative Agent
will make such funds available to the applicable Borrower as soon as practicable
on such date at the Administrative Agent's aforesaid address. As soon as
practicable after each Borrowing Date, the CAF Advance Agent shall notify each
Lender of the aggregate amount of CAF Advances advanced on such Borrowing Date
and the respective maturity dates thereof.

          (h) The failure of any CAF Advance Lender to make the CAF Advance to
be made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any,

                                       23
<PAGE>   28

hereunder to make its CAF Advance on the date of such Borrowing, but no CAF
Lender shall be responsible for the failure of any other CAF Advance Lender to
make the CAF Advance to be made by such CAF Advance Lender on the date of any
Borrowing.

          (i) A CAF Advance Request may request offers for CAF Advances to be
made on not more than one Borrowing Date and to mature on not more than five CAF
Advance Maturity Dates. No CAF Advance Request may be submitted earlier than
five Business Days after submission of any other CAF Advance Request.

          SECTION II.6 CAF Advance Payments. (a) The applicable Borrower shall
repay to the Administrative Agent, for the account of each CAF Advance Lender
which has made a CAF Advance to it, on the applicable CAF Advance Maturity Date
the then unpaid principal amount of such CAF Advance. The Borrowers shall not
have the right to prepay any principal amount of any CAF Advance.

          (b) The applicable Borrower shall pay interest on the unpaid principal
amount of each CAF Advance to it from the date of the Borrowing to the
applicable CAF Advance Maturity Date at the rate of interest specified in the
CAF Advance Offer accepted by the applicable Borrower in connection with such
CAF Advance (calculated on the basis of a 360-day year for actual days elapsed),
payable on each applicable CAF Advance Interest Payment Date.

          (c) If all or a portion of the principal amount of any CAF Advance
shall not be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue principal amount shall, without limiting any rights of
any Lender under this Agreement, bear interest from the date on which such
payment was due at a rate per annum which is 1% above the rate which would
otherwise be applicable pursuant to such CAF Advance until the stated maturity
date of such CAF Advance, and for each day thereafter at a rate per annum which
is 2% above the Base Rate, in each case until paid in full (as well after as
before judgment). Interest accruing pursuant to this paragraph (c) shall be
payable from time to time on demand.

          SECTION II.7 Evidence of Debt. Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing indebtedness
of each Borrower to such Lender resulting from each CAF Advance of such Lender
to such Borrower from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time in respect of such
CAF Advance. The Administrative Agent shall maintain the Register pursuant to
Section 9.7(c) and a record therein for each Lender, in which shall be recorded
(i) the amount of each CAF Advance made by such Lender to each Borrower, the CAF
Advance Maturity Date thereof, the interest rate applicable thereto and each CAF
Advance Interest Payment Date applicable thereto, and (ii) the amount of any sum
received by the Administrative Agent hereunder from a Borrower on account of
such CAF Advance. The entries made in the Register and the records of each
Lender maintained pursuant to this Section 2.7 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such record, or any error therein,

                                       24
<PAGE>   29

shall not in any manner affect the obligation of each Borrower to repay (with
applicable interest) the CAF Advances made by such Lender in accordance with the
terms of this Agreement.

          SECTION II.8 Fees. (a) The Company agrees to pay to the Administrative
Agent for the account of each Lender a facility fee for the period from and
including the Facility Fee Commencement Date until all Advances have been paid
in full and all Commitments have been terminated, computed at a variable rate
per annum on the average daily amount of the greater of (i) the Commitment of
such Lender and (ii) the outstanding principal amount of Revolving Credit
Advances of such Lender during the period for which payment is made, which rate
will vary according to the S&P Bond Rating for the Company and the Moody's Bond
Rating for the Company as follows:

<TABLE>
<CAPTION>
            Bond Rating                                                       Facility
           (S&P/Moody's)                           Level                      Fee Rate
           -------------                           -----                      --------

<S>                                                <C>                       <C>
         A/A2 or higher                                I                         .080%
         A-/A3                                        II                         .090%
         BBB+/Baa1                                   III                         .110%
         BBB/Baa2                                     IV                         .125%
         BBB-/Baa3                                     V                         .175%
         BB+/Ba1 or lower                             VI                         .225%;
</TABLE>

provided that (i) if the Bond Ratings of the Company do not fall within the same
Level, the rate applicable to such day will be the percentage opposite the Bond
Rating that is at the higher Level (Level I being the highest and Level VI being
the lowest), (ii) in the event a Bond Rating for the Company is not available
from one of the Rating Agencies, the rate shall be based on the Bond Rating of
the other Rating Agency, and (iii) in the event a Bond Rating for the Company is
available from none of the Rating Agencies, the rate will be the percentage
opposite Level VI. Such facility fees shall be payable quarterly in arrears on
the last day of each March, June, September and December and on the Termination
Date or such earlier date on which the Commitments shall terminate as provided
herein, and, if the Lender is an Objecting Lender, on the Commitment Expiration
Date applicable to such Lender and on the Termination Date (or if the Lender is
an Objecting Lender, the Commitment Expiration Date applicable to such Lender)
or such earlier date on which the Advances are repaid in full, commencing on the
first of such dates to occur after the date hereof.

          (b) The Company agrees to pay to Chase Securities Inc., the
Administrative Agent and the CAF Advance Agent the fees set forth in the letter,
dated as of July 5, 2000 from Chase Securities Inc. and Chase to the Company.

          SECTION II.9 Reduction of the Commitments. The Company shall have the
right, upon at least three Business Days' notice to the Administrative Agent, to
terminate in whole or reduce ratably in part the unused portions of the
respective Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $10,000,000 or any whole multiple of
$1,000,000 in excess thereof.

                                       25
<PAGE>   30

          SECTION II.10 Repayment of Advances. The Borrowers shall repay to each
Lender on the Termination Date the aggregate principal amount of the Advances
then owing to such Lender; provided that the Revolving Credit Advances made by
Objecting Lenders shall be repaid as provided in Section 2.23.

          SECTION II.11 Interest on Revolving Credit Advances. (a) Ordinary
Interest. Each Borrower shall pay interest on the unpaid principal amount of
each Revolving Credit Advance of such Borrower owing to each Lender from the
date of such Advance until such principal amount is due (whether at stated
maturity, by acceleration or otherwise), at the following rates:

               (i) Base Rate Advances. During such periods as such Advance is a
     Base Rate Advance, a rate per annum equal at all times to the Base Rate in
     effect from time to time, payable quarterly in arrears on the last day of
     each March, June, September and December during such periods and on the
     date such Base Rate Advance shall be Converted or due (whether at stated
     maturity, by acceleration or otherwise).

               (ii) Eurodollar Rate Advances. During such periods as such
     Advance is a Eurodollar Rate Advance, at a rate per annum equal at all
     times during each Interest Period for such Advance to the sum of the
     Eurodollar Rate for such Interest Period plus the Applicable Eurodollar
     Rate Margin for such Borrower in effect from time to time, payable on the
     last day of each such Interest Period and, if any such Interest Period has
     a duration of more than three months, on each day which occurs during such
     Interest Period every three months from the first day of such Interest
     Period, and on the date such Advance shall be Converted or due (whether at
     stated maturity, by acceleration or otherwise).

          (b) Default Interest. The applicable Borrower shall pay interest on
the unpaid principal amount of each Revolving Credit Advance to it that is not
paid when due (whether at stated maturity, by acceleration or otherwise) from
the date on which such amount is due until such amount is paid in full, payable
on demand, at a rate per annum equal at all times (i) from such due date to the
last day of the then existing Interest Period in the case of each Eurodollar
Rate Advance, to 1% per annum above the interest rate per annum required to be
paid on such Advance immediately prior to the date on which such amount became
due, and (ii) from and after the last day of the then existing Interest Period,
and at all times in the case of any Base Rate Advance, to 1% per annum above the
Base Rate in effect from time to time.

          SECTION II.12 Additional Interest on Eurodollar Rate Advances. If any
Lender shall determine in good faith that reserves under regulations of the
Board of Governors of the Federal Reserve System are required to be maintained
by it in respect of, or a portion of its costs of maintaining reserves under
such regulations is properly attributable to, one or more of its Eurodollar Rate
Advances, the applicable Borrower shall pay to such Lender additional interest
on the unpaid principal amount of each such Eurodollar Rate Advance to it (other
than any such additional interest accruing to a particular Lender in respect of
periods prior to the 30th day

                                       26
<PAGE>   31

preceding the date notice of such interest is given by such Lender as provided
in this Section 2.12), payable on the same day or days on which interest is
payable on such Advance, at an interest rate per annum equal at all times during
each Interest Period for such Advance to the excess of (i) the rate obtained by
dividing the Eurodollar Rate for such Interest Period by a percentage equal to
100% minus the Eurodollar Reserve Percentage, if any, for such Lender for such
Interest Period over (ii) the Eurodollar Rate for such Interest Period. The
amount of such additional interest (if any) shall be determined by each Lender,
and such Lender shall furnish written notice of the amount of such additional
interest to the Company and the Administrative Agent, which notice shall be
conclusive and binding for all purposes, absent manifest error.

          SECTION II.13 Interest Rate Determination. (a) Each Reference Lender
agrees to furnish to the Administrative Agent timely information for the purpose
of determining the Eurodollar Rate. If any one or more of the Reference Lenders
shall not furnish such timely information to the Administrative Agent for the
purpose of determining any such interest rate, the Administrative Agent shall
determine such interest rate on the basis of timely information furnished by the
remaining Reference Lenders.

          (b) The Administrative Agent shall give prompt notice to the Company
and the Lenders of the applicable interest rate determined by the Administrative
Agent for purposes of Section 2.11(a)(i) or (ii), and the applicable rate, if
any, furnished by each Reference Lender for the purpose of determining the
applicable interest rate under Section 2.11(a)(ii).

          (c) If fewer than two Reference Lenders furnish timely information to
the Administrative Agent for determining the Eurodollar Rate for any Eurodollar
Rate Advances,

               (i) the Administrative Agent shall give the Company and each
     Lender prompt notice thereof by telephone (confirmed in writing) that the
     interest rate cannot be determined for such Eurodollar Rate Advances,

               (ii) each such Advance will automatically, on the last day of the
     then existing Interest Period therefor, Convert into a Base Rate Advance
     (or if such Advance is then a Base Rate Advance, will continue as a Base
     Rate Advance), and

               (iii) the obligations of the Lenders to make, or to Convert
     Advances into, Eurodollar Rate Advances shall be suspended until the
     Administrative Agent shall notify the Company and the Lenders that the
     circumstances causing such suspension no longer exist.

                  (d) If, with respect to any Eurodollar Rate Advances, the
Majority Lenders determine and give notice to the Administrative Agent that, as
a result of conditions in or generally affecting the London interbank eurodollar
market, the rates of interest determined on the basis of the Eurodollar Rate for
any Interest Period for such Advances will not adequately reflect the cost to
such Majority Lenders of making, funding or maintaining their respective
Eurodollar Rate Advances for such Interest Period, the Administrative Agent
shall forthwith so notify the Company and the Lenders, whereupon,

                                       27
<PAGE>   32

               (i) each such Advance will automatically, on the last day of the
     then existing Interest Period therefor, Convert into a Base Rate Advance,
     and

               (ii) the obligation of the Lenders to make, or to Convert
     Advances into, Eurodollar Rate Advances shall be suspended until the
     Administrative Agent shall notify the Company and the Lenders that the
     circumstances causing such suspension no longer exist.

          (e) If the applicable Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.1, the
Administrative Agent will forthwith so notify the applicable Borrower and the
Lenders and such Advances will automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances.

          (f) On the date on which the aggregate unpaid principal amount of
Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $10,000,000, such Eurodollar Rate
Advances shall automatically Convert into Base Rate Advances, and on and after
such date the right of the applicable Borrower to Convert such Advances into
Eurodollar Rate Advances shall terminate; provided, however, that if and so long
as each such Eurodollar Rate Advance shall have the same Interest Period as
Eurodollar Rate Advances comprising another Borrowing or other Borrowings, and
the aggregate unpaid principal amount of all such Eurodollar Rate Advances shall
equal or exceed $20,000,000, the applicable Borrower shall have the right to
continue all such Advances as, or to Convert all such Advances into Eurodollar
Rate Advances having the same Interest Period.

          (g) If any Reference Lender shall for any reason no longer have a
Commitment or any Revolving Credit Advances, such Reference Lender shall
thereupon cease to be a Reference Lender, and if, as a result, there shall only
be one Reference Lender remaining, the Administrative Agent (after consultation
with the Company and the Lenders) shall, by notice to the Company and the
Lenders, designate another Lender as a Reference Lender so that there shall at
all times be at least two Reference Lenders.

          SECTION II.14 Voluntary Conversion of Advances. Any Borrower may on
any Business Day, upon notice given to the Administrative Agent, not later than
10:00 A.M. (New York City time) on the Business Day of the proposed Conversion
of Eurodollar Rate Advances to Base Rate Advances and not later than 12:00 noon
(New York City time) on the third Business Day prior to the date of the proposed
Conversion in the case of a Conversion of Base Rate Advances to Eurodollar Rate
Advances, and subject to the provisions of Sections 2.13, 2.16 and 2.18, Convert
all Advances of one Type comprising the same Borrowing into Advances of another
Type; provided, however, that any Conversion of any Eurodollar Rate Advances
into Base Rate Advances made on any day other than the last day of an Interest
Period for such Eurodollar Rate Advances shall be subject to the provisions of
Section 9.4(b); and provided, further, that no Revolving Credit Advance may be
converted into a Eurodollar Rate Advance after the date that is one month prior
to (a) in the case of a Revolving Credit Advance made by an

                                       28
<PAGE>   33

Objecting Lender, such Objecting Lender's Commitment Expiration Date, and (b) in
the case of all Revolving Credit Advances, the Termination Date and provided,
still further, that no Revolving Credit Advance may be converted into a
Eurodollar Rate Advance if an Event of Default has occurred and is continuing.
Each such notice of a Conversion shall, within the restrictions specified above,
specify (a) the date of such Conversion, (b) the Advances to be Converted, and
(c) if such Conversion is into Eurodollar Rate Advances, the duration of the
Interest Period for each such Advance.

          SECTION II.15 Optional and Mandatory Prepayments. (a) Optional
Prepayments. Any Borrower may upon (i) in the case of Eurodollar Rate Advances,
at least two Business Days' notice and (ii) in the case of Base Rate Advances,
telephonic notice not later than 12:00 noon (New York City time) on the date of
prepayment, to the Administrative Agent which specifies the proposed date and
aggregate principal amount of the prepayment and the Type of Advances to be
prepaid, and if such notice is given such Borrower shall, prepay the outstanding
principal amounts of the Revolving Credit Advances comprising the same Borrowing
in whole or ratably in part, together with accrued interest to the date of such
prepayment on the amount prepaid; provided, however, that (A) each partial
prepayment shall be in an aggregate principal amount not less than $10,000,000
or an integral multiple of $1,000,000 in excess thereof and (B) in the event of
any such prepayment of Eurodollar Rate Advances on any day other than the last
day of an Interest Period for such Eurodollar Rate Advances, such Borrower shall
be obligated to reimburse the Lenders in respect thereof pursuant to, and to the
extent required by, Section 9.4(b); provided, further, however, that such
Borrower will use its best efforts to give notice to the Administrative Agent of
the proposed prepayment of Base Rate Advances on the Business Day prior to the
date of such proposed prepayment.

          (b) Mandatory Prepayments. If, at any time and from time to time, the
aggregate principal amount of Advances (other than Advances of Objecting
Lenders) then outstanding exceeds the Commitments of all the Lenders after
giving effect to any reduction of the Commitments pursuant to Section 2.9, the
Borrowers shall immediately prepay the Revolving Credit Advances of Lenders
(other than Objecting Lenders) (to the extent there are such outstanding
Revolving Credit Advances) by an amount equal to such excess.

          SECTION II.16 Increased Costs. (a) If, due to either (i) the
introduction after the date of this Agreement of or any change after the date of
this Agreement (including any change by way of imposition or increase of reserve
requirements or assessments other than those referred to in the definition of
"Eurodollar Reserve Percentage" contained in Section 1.1) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request issued or made after the date of this Agreement from or by
any central bank or other governmental authority (whether or not having the
force of law), in each case above other than those referred to in Section 2.17,
there shall be any increase in the cost to any Lender of agreeing to make, fund
or maintain, or of making, funding or maintaining, Eurodollar Rate Advances
funded in the interbank Eurodollar market, then the Borrowers shall from time to
time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender additional amounts sufficient to reimburse such Lender for all such
increased costs (except those costs incurred more than 60 days prior to the date
of such

                                       29
<PAGE>   34

demand; for the purposes hereof any cost or expense allocable to a period prior
to the publication or effective date of such an introduction, change, guideline
or request shall be deemed to be incurred on the later of such publication or
effective date). Each Lender agrees to use its best efforts promptly to notify
the Company of any event referred to in clause (i) or (ii) above, provided that
the failure to give such notice shall not affect the rights of any Lender under
this Section 2.16(a) (except as otherwise expressly provided above in this
Section 2.16(a)). A certificate as to the amount of such increased cost,
submitted to the Company and the Administrative Agent by such Lender, shall be
conclusive and binding for all purposes, absent manifest error. After one or
more Lenders have notified the Company of any increased costs pursuant to this
Section 2.16, the Company may specify by notice to the Administrative Agent and
the affected Lenders that, after the date of such notice whenever the election
of Eurodollar Rate Advances by the applicable Borrower for an Interest Period or
portion thereof would give rise to such increased costs, such election shall not
apply to the Revolving Credit Advances of such Lenders during such Interest
Period or portion thereof, and, in lieu thereof, such Revolving Credit Advances
shall during such Interest Period or portion thereof be Base Rate Advances. Each
Lender agrees to use its best efforts (including a reasonable effort to change
its lending office or to transfer its affected Advances to an affiliate of such
Lender) to avoid, or minimize the amount of, any demand for payment from the
Borrowers under this Section 2.16.

          (b) In the event that any Lender shall change its lending office and
such change results (at the time of such change) in increased costs to such
Lender, the Borrowers shall not be liable to such Lender for such increased
costs incurred by such Lender to the extent, but only to the extent, that such
increased costs shall exceed the increased costs which such Lender would have
incurred if the lending office of such Lender had not been so changed, but,
subject to subsection (a) above and to Section 2.18, nothing herein shall
require any Lender to change its lending office for any reason.

          SECTION II.17 Increased Capital. If either (a) the introduction of or
any change in or in the interpretation of any law or regulation or (b)
compliance by any Lender with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law) affects or
would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and such Lender determines
that the amount of such capital is increased by or based upon the existence of
such Lender's commitment to lend hereunder and other commitments of this type,
then, within ten days after demand, and delivery to the Company of the
certificate referred to in the last sentence of this Section 2.17 by such Lender
(with a copy of such demand to the Administrative Agent), the applicable
Borrowers shall pay to the Administrative Agent for the account of such Lender,
from time to time as specified by such Lender, additional amounts sufficient to
compensate such Lender or such corporation in the light of such circumstances,
to the extent that such Lender reasonably determines such increase in capital to
be allocable to the existence of such Lender's commitment to lend hereunder
(except any such increase in capital incurred more than, or compensation
attributable to the period before, 90 days prior to the date of such demand; for
the purposes hereof any increase in capital allocable to, or compensation
attributable to, a period prior to the publication or effective date of such an
introduction, change, guideline or request shall be deemed to be incurred on the
later of such publication or effective date). Each Lender

                                       30
<PAGE>   35

agrees to use its best efforts promptly to notify the Company of any event
referred to in clause (a) or (b) above, provided that the failure to give such
notice shall not affect the rights of any Lender under this Section 2.17 (except
as otherwise expressly provided above in this Section 2.17). A certificate in
reasonable detail as to the basis for, and the amount of, such compensation
submitted to the Company by such Lender shall, in the absence of manifest error,
be conclusive and binding for all purposes.

          SECTION II.18 Illegality. Notwithstanding any other provision of this
Agreement, if the introduction of or any change in or in the interpretation of
any law or regulation shall make it unlawful, or any central bank or other
governmental authority shall assert that it is unlawful, for any Lender or its
lending office to perform its obligations hereunder to make Eurodollar Rate
Advances or to continue to fund or maintain such Advances hereunder, such Lender
may, by notice to the Company and the Administrative Agent, suspend the right of
the Borrowers to elect Eurodollar Rate Advances from such Lender and, if
necessary in the reasonable opinion of such Lender to comply with such law or
regulation, Convert all such Eurodollar Rate Advances of such Lender to Base
Rate Advances at the latest time permitted by the applicable law or regulation,
and such suspension and, if applicable, such Conversion shall continue until
such Lender notifies the Company and the Administrative Agent that the
circumstances making it unlawful for such Lender to perform such obligations no
longer exist (which such Lender shall promptly do when such circumstances no
longer exist). So long as the obligation of any Lender to make Eurodollar Rate
Advances has been suspended under this Section 2.18, all Notices of Borrowing
specifying Advances of such Type shall be deemed, as to such Lender, to be
requests for Base Rate Advances. Each Lender agrees to use its best efforts
(including a reasonable effort to change its lending office or to transfer its
affected Advances to an affiliate) to avoid any such illegality.

          SECTION II.19 Pro Rata Treatment, Payments and Computations. (a) Each
Borrowing by any Borrower in respect of Revolving Credit Advances (subject to
the provisions of Section 2.24(e)) shall be made pro rata according to the
respective Commitment Percentages of the Lenders. The Borrowers shall make each
payment hereunder (including under Section 2.6, 2.8, 2.10 or 2.11) and under the
Notes, whether the amount so paid is owing to any or all of the Lenders or to
the Administrative Agent, not later than 12:00 noon (New York City time) without
setoff, counterclaim, or any other deduction whatsoever, on the day when due in
Dollars to the Administrative Agent at its address at 270 Park Avenue, New York,
New York 10017, Reference: El Paso Energy Corporation, or at such other location
designated by notice to the Company from the Administrative Agent and agreed to
by the Company, in same day funds. The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or facility fees ratably (other than amounts payable
pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) according to the respective
amounts of such principal, interest or facility fees then due and owing to the
Lenders, and like funds relating to the payment of any other amount payable to
any Lender to such Lender, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to
Section 9.7(d), from and after the effective date specified in such Assignment
and Acceptance, the Administrative Agent shall make all payments hereunder and
under the Notes in respect of

                                       31
<PAGE>   36

the interest assigned thereby to the Lender assignee thereunder, and the parties
to such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.

          (b) All computations of interest based on the Prime Rate and of
facility fees shall be made by the Administrative Agent on the basis of a year
of 365 or 366 days, as the case may be, and all computations of interest based
on the Eurodollar Rate or the Effective Federal Funds Rate shall be made by the
Administrative Agent, and all computations of interest pursuant to Section 2.12
shall be made by each Lender with respect to its own Advances, on the basis of a
year of 360 days, in each case for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest or fees are payable. Each determination by the Administrative Agent
(or, in the case of Section 2.12, 2.16, 2.17, 2.18 or 2.20, by each Lender with
respect to its own Advances) of an interest rate or an increased cost or
increased capital or of illegality hereunder shall be conclusive and binding for
all purposes if made reasonably and in good faith.

          (c) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest; provided, however, if such
extension would cause payment of interest on or principal of Eurodollar Rate
Advances to be made in the next following calendar month, such payment shall be
made on the next preceding Business Day.

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

          SECTION II.20 Taxes. (a) Any and all payments by the Borrowers
hereunder or under the Notes to each Indemnified Party shall be made, in
accordance with Section 2.19, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding all taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, imposed by the jurisdiction under the laws of which such
Indemnified Party is organized, domiciled, resident or doing business, or any
political subdivision thereof or by any jurisdiction in which such Indemnified
Party holds any interest in connection with this Agreement or any Note
(including in the case of each Lender, the jurisdiction of such Lender's lending
office) or

                                       32
<PAGE>   37

any political subdivision thereof, other than by any jurisdiction with which the
Indemnified Party's connection arises solely from having executed, delivered or
performed obligations or received a payment under, or enforced, this Agreement
or any Note (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes"). If any
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note to any Indemnified Party, (i) the sum
payable shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.20) such Indemnified Party receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Borrower shall
make or cause to be made such deductions and (iii) such Borrower shall pay or
cause to be paid the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law, provided that the Borrowers
shall not be required to pay any additional amount (and shall be relieved of any
liability with respect thereto) pursuant to this subsection (a) to any
Indemnified Party that either (A) on the date such Lender became an Indemnified
Party hereunder, (I) was not entitled to submit a U.S. Internal Revenue Service
form 1001 (relating to such Indemnified Party, and entitling it to a complete
exemption from United States withholding taxes on all amounts to be received by
such Indemnified Party pursuant to this Agreement) and a U.S. Internal Revenue
Service form 4224 (relating to all amounts to be received by such Indemnified
Party pursuant to this Agreement) and (II) was not a United States person (as
such term is defined in Section 7701(a)(30) of the Internal Revenue Code) or (B)
has failed to submit any form or certificate that it was required to file or
provide pursuant to subsection (d) of this Section 2.20 and is entitled to file
or give, as applicable, under applicable law, provided, further, that should an
Indemnified Party become subject to Taxes because of its failure to deliver a
form required hereunder, the Borrowers shall take such steps as such Indemnified
Party shall reasonably request to assist such Indemnified Party to recover such
Taxes, and provided, further, that each Indemnified Party, with respect to
itself, agrees to indemnify and hold harmless the Borrowers from any taxes,
penalties, interest and other expenses, costs and losses incurred or payable by
the Borrowers as a result of the failure of any of the Borrowers to comply with
its obligations under clause (ii) or (iii) above in reliance on any form or
certificate provided to it by such Indemnified Party pursuant to this Section
2.20. If any Indemnified Party receives a net credit or refund in respect of
such Taxes or amounts so paid by the Borrowers, it shall promptly notify the
Company of such net credit or refund and shall promptly pay such net credit or
refund to the applicable Borrower, provided that the applicable Borrower agrees
to return such net credit or refund if the Indemnified Party to which such net
credit or refund is applicable is required to repay it.

          (b) In addition, each Borrower agrees to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made by such Borrower hereunder or
under the Notes or from the execution, delivery or performance of, or otherwise
with respect to, this Agreement or the Notes (hereinafter referred to as "Other
Taxes").

          (c) Each Borrower will indemnify each Indemnified Party and the
Administrative Agent for the full amount of Taxes or Other Taxes (including any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.20) paid by such

                                       33
<PAGE>   38

Indemnified Party and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto except as a result of the gross
negligence (which shall in any event include the failure of such Indemnified
Party to provide to the Borrowers any form or certificate that it was required
to provide pursuant to subsection (d) below) or willful misconduct of such
Indemnified Party, whether or not such Taxes or Other Taxes were correctly or
legally asserted. This indemnification shall be made within 30 days from the
date such Indemnified Party makes written demand therefor.

          (d) On or prior to the date on which each Indemnified Party organized
under the laws of a jurisdiction outside the United States becomes an
Indemnified Party hereunder, such Indemnified Party shall provide the Company
with U.S. Internal Revenue Service form 1001 or 4224, as appropriate, or any
successor form prescribed by the U.S. Internal Revenue Service, certifying that
such Indemnified Party is fully exempt from United States withholding taxes with
respect to all payments to be made to such Indemnified Party hereunder, or other
documents satisfactory to the Company indicating that all payments to be made to
such Indemnified Party hereunder are fully exempt from such taxes. Thereafter
and from time to time (but only so long as such Indemnified Party remains
lawfully able to do so), each such Indemnified Party shall submit to the Company
such additional duly completed and signed copies of one or the other of such
Forms (or such successor Forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may be (i) notified by any
Borrower to such Indemnified Party and (ii) required under then-current United
States law or regulations to avoid United States withholding taxes on payments
in respect of all amounts to be received by such Indemnified Party pursuant to
this Agreement or the Notes. Upon the request of any Borrower from time to time,
each Indemnified Party that is a United States person (as such term is defined
in Section 7701(a)(30) of the Internal Revenue Code) shall submit to the Company
a certificate to the effect that it is such a United States person. If any
Indemnified Party determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Company any form or certificate that such
Indemnified Party is obligated to submit pursuant to this subsection (d), or
that such Indemnified Party is required to withdraw or cancel any such form or
certificate previously submitted, such Indemnified Party shall promptly notify
the Company of such fact.

          (e) Any Indemnified Party claiming any additional amounts payable
pursuant to this Section 2.20 shall use its best efforts (consistent with its
internal policy and legal and regulatory restrictions) to change the
jurisdiction of its lending office if the making of such a change would avoid
the need for, or reduce the amount of, any such additional amounts which may
thereafter accrue and would not, in the reasonable judgment of such Indemnified
Party, be otherwise disadvantageous to such Indemnified Party.

          (f) Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers and each
Indemnified Party contained in this Section 2.20 shall survive the payment in
full of principal and interest hereunder and under the Notes.

                                       34
<PAGE>   39

          (g) Any other provision of this Agreement to the contrary
notwithstanding, any amounts which are payable by any Borrower under this
Section 2.20 shall not be payable under Section 2.16.

          SECTION II.21 Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances made by it (other than
pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) in excess of its ratable
share of payments on account of the Advances obtained by all the Lenders, such
Lender shall forthwith purchase from the other Lenders such participations in
the Advances made by them as shall be necessary to cause such purchasing Lender
to share the excess payment ratably with each of them, provided, however, that
if all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and each
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (a) the amount of such Lender's required
repayment to (b) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of such Borrower in the amount of such
participation.

          SECTION II.22 Use of Proceeds. Proceeds of the Advances may be used
for general business purposes of the Borrowers and their respective
Subsidiaries, including for acquisitions and for payment of commercial paper
issued by the Borrowers, and to refinance any Indebtedness of the Borrowers and
their respective Subsidiaries (whether in connection with any acquisition or
otherwise).

          SECTION II.23 Extension of Stated Termination Date. (a) Not less than
45 days and not more than 60 days prior to the Stated Termination Date then in
effect, provided that no Event of Default shall have occurred and be continuing,
the Company may request an extension of such Stated Termination Date by
submitting to the Administrative Agent an Extension Request containing the
information in respect of such extension specified in Exhibit M, which the
Administrative Agent shall promptly furnish to each Lender. Each Lender shall,
not less than 30 days and not more than 60 days prior to the Stated Termination
Date then in effect, notify the Company and the Administrative Agent of its
election to extend or not extend the Stated Termination Date as requested in
such Extension Request. Notwithstanding any provision of this Agreement to the
contrary, any notice by any Lender of its willingness to extend the Stated
Termination Date shall be revocable by such Lender in its sole and absolute
discretion at any time prior to the date which is 30 days prior to the Stated
Termination Date then in effect. If the Required Lenders shall approve in
writing the extension of the Stated Termination Date requested in such Extension
Request, the Stated Termination Date shall automatically and without any further
action by any Person be extended for the period specified in such Extension
Request; provided that (i) each extension pursuant to this Section 2.23 shall be
for a maximum of three years and (ii) the Commitment of any Lender that does not
consent in writing, or which

                                       35
<PAGE>   40

revokes, in accordance with the provisions of this Section 2.23, its consent to
such extension not less than 30 days and not more than 60 days prior to the
Stated Termination Date then in effect and has not thereafter reinstated its
consent (an "Objecting Lender") shall, unless earlier terminated in accordance
with this Agreement, expire on the Stated Termination Date in effect on the date
of such Extension Request (such Stated Termination Date, if any, being referred
to as the "Commitment Expiration Date" with respect to such Objecting Lender).
If, not less than 30 days and not more than 60 days prior to the Stated
Termination Date then in effect, the Required Lenders shall not approve in
writing the extension of the Stated Termination Date requested in an Extension
Request, the Stated Termination Date shall not be extended pursuant to such
Extension Request. The Administrative Agent shall promptly notify (y) the
Lenders and the Company of any extension of the Stated Termination Date pursuant
to this Section 2.23 and (z) the Company and the Lenders of any Lender which
becomes an Objecting Lender.

          (b) Revolving Credit Advances owing to any Objecting Lender on the
Commitment Expiration Date with respect to such Lender shall be repaid in full
on or before such Commitment Expiration Date.

          (c) The Borrowers shall have the right, so long as no Event of Default
has occurred and is then continuing, upon giving notice to the Administrative
Agent and the Objecting Lenders in accordance with Section 2.15, to prepay in
full the Revolving Credit Advances of the Objecting Lenders, together with
accrued interest thereon, any amounts payable pursuant to Sections 2.11, 2.12,
2.16, 2.17, 2.18, 2.20 and 9.4(b) and any accrued and unpaid facility fee or
other amounts payable to the Objecting Lenders hereunder and/or, upon giving not
less than three Business Days' notice to the Objecting Lenders and the
Administrative Agent, to cancel the whole or part of the Commitments of the
Objecting Lenders.

          (d) Notwithstanding the foregoing, if any Lender becomes an Objecting
Lender, the Borrower may, at its own expense and in its sole discretion and
prior to the then Stated Termination Date, require such Lender to transfer or
assign, in whole or in part, without recourse (in accordance with Section 9.7),
all or part of its interests, rights and obligations under this Agreement to an
Eligible Assignee (provided that the Borrower, with the full cooperation of such
Lender, can identify an Eligible Assignee that is ready, willing and able to be
an assignee with respect thereto) which shall assume such assigned obligations
(which assignee may be another Lender, if such assignee Lender accepts such
assignment); provided that (A) the assignee or the Borrower, as the case may be,
shall have paid to such Lender in immediately available funds the principal of
and interest accrued to the date of such payment on the Advances made by it
hereunder and all other amounts owed to it hereunder, including any amounts
owing pursuant to Section 9.4(b) and any amounts that would be owing under said
Section if such Advances were prepaid on the date of such assignment, and (B)
such assignment does not conflict with any law, rule or regulation or order of
any governmental authority. Any assignee which becomes a Lender as a result of
such an assignment made pursuant to this paragraph (d) shall be deemed to have
consented to the applicable Extension Request and, therefore, shall not be an
Objecting Lender.

          SECTION II.24 [Intentionally Left Blank]

                                       36
<PAGE>   41

          SECTION II.25 Replacement of Lenders. If any Lender requests
compensation under Sections 2.12, 2.16 or 2.17 or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.20, or if any Lender suspends the
right of any Borrower to elect Eurodollar Rate Advances from such Lender
pursuant to Section 2.18, or if any Lender defaults in its obligation to fund
Advances hereunder, then the Company 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 Section 9.7), all its interests, rights and
obligations under this Agreement (other than any outstanding CAF Advances held
by it) to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the
Company shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Advances (other than CAF Advances), accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrowers (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Sections 2.12 , 2.16 or 2.17 or
payments required to be made pursuant to Section 2.20, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply.

                                       37
<PAGE>   42

                                   ARTICLE III

                     CONDITIONS OF EFFECTIVENESS AND LENDING

          SECTION III.1 Conditions Precedent to Effectiveness of this Agreement.
This Agreement shall become effective (the "Effective Date") when (i) it shall
have been executed by the Company, EPNGC Tennessee, the Administrative Agent,
the CAF Advance Agent, the Co-Documentation Agents and the Syndication Agent and
(ii) the Administrative Agent and the Company either shall have been notified by
each Lender that such Lender has executed it or shall have received a
counterpart of this Agreement executed by such Lender (or compliance with the
forgoing shall have been waived by the Lenders). Anything in this Agreement to
the contrary notwithstanding, if all of the conditions to effectiveness of this
Agreement specified in this Section 3.1 shall not have been fulfilled on or
before August 31, 2000, (i) the Company shall on such date pay all accrued and
unpaid facility fees pursuant to Section 2.8 and (ii) this Agreement, and all of
the obligations of the Company, the Lenders, the Administrative Agent and the
CAF Advance Agent hereunder, shall be terminated on and as of 5:00 P.M. (New
York City time) on August 31, 2000; provided, however, that as soon as the
Administrative Agent determines that all of the conditions to effectiveness of
this Agreement specified in this Section 3.1 shall have been fulfilled on or
before August 31, 2000, the Administrative Agent shall furnish written notice to
the Company and the Lenders to the effect that it has so determined, and such
notice by the Administrative Agent shall constitute conclusive evidence that
this Agreement shall have become effective for all purposes. Notwithstanding the
foregoing, the obligations of the Company to pay fees pursuant to Section 2.8 as
well as all obligations of the Borrowers pursuant to Section 9.4 shall survive
the termination of this Agreement.

          SECTION III.2 Conditions Precedent to Initial Advances. The agreement
of each Lender to make the initial Advances to be made by it to the Borrowers
hereunder is subject to (the date upon which all conditions listed in Section
3.2(a) and 3.2(b) are satisfied, the "Closing Date") (a) the occurrence of the
Effective Date hereunder and (b) the receipt by the Administrative Agent of the
following in form and substance satisfactory to the Administrative Agent and in
sufficient copies for each Lender:

          (i) Certified copies of the resolutions of the Board of Directors of
     each of the Company, EPNGC and Tennessee approving the borrowings
     contemplated hereby and authorizing the execution of this Agreement and the
     Notes, and of all documents evidencing other necessary Business Entity
     action of each of the Company, EPNGC and Tennessee and governmental
     approvals to each of the Company, EPNGC and Tennessee, if any, with respect
     to this Agreement and the Notes.

          (ii) A certificate of the Secretary or an Assistant Secretary of each
     of the Company, EPNGC and Tennessee certifying the names and true
     signatures of the officers of each of the Company, EPNGC and Tennessee
     authorized to sign this Agreement and the other documents to be delivered
     by it hereunder.

                                       38
<PAGE>   43

          (iii) A favorable opinion of the Senior Counsel of the Company, or the
     Associate General Counsel of the Company, in substantially the form of
     Exhibit G.

          (iv) A favorable opinion of Jones, Day, Reavis & Pogue, New York
     counsel to the Company, EPNGC and Tennessee, in substantially the form of
     Exhibit H.

          (v) A letter from the Process Agent, in substantially the form of
     Exhibit I, agreeing to act as Process Agent for each of the Company, EPNGC
     and Tennessee and to forward forthwith all process received by it to the
     Company, EPNGC and Tennessee, as applicable.

          (vi) Evidence satisfactory to the Administrative Agent that all
     advances, accrued interest and other fees and any other amounts owing to
     the lenders and the agents under the Existing 364-Day Facility and the
     Existing 5-Year Facility shall have been, or simultaneously with the
     initial Advances are being, paid in full, and the commitments to make
     advances thereunder shall have been cancelled.

          SECTION III.3 Conditions Precedent to Initial Advances to Any
Borrowing Subsidiary. The agreement of each Lender to make the initial Advances
to be made by it to any Borrowing Subsidiary (other than EPNGC and Tennessee) is
further subject to the Administrative Agent receiving the following, in form and
substance satisfactory to the Administrative Agent and (except for the Notes) in
sufficient copies for each Lender:

          (a) A Joinder Agreement executed and delivered by such Borrowing
     Subsidiary conforming to the requirements hereof.

          (b) Notes, dated the date such Borrowing Subsidiary executes and
     delivers its Joinder Agreement, made by such Borrowing Subsidiary to the
     order of each Lender requesting a Note, respectively.

          (c) A certificate of the Secretary or an Assistant Secretary of such
     Borrowing Subsidiary certifying the names and true signature of the
     officers of such Borrowing Subsidiary authorized to sign the Joinder
     Agreement and the other documents to be delivered by it hereunder.

          (d) A favorable opinion of the Senior Counsel or Associate General
     Counsel of the Company, given upon the express instructions of the Company,
     in substantially the form of Exhibit K, and as to such other matters as any
     Lender through the Administrative Agent may reasonably request, with such
     assumptions, qualifications and exceptions as the Administrative Agent may
     approve.

          (e) A favorable opinion of Jones, Day, Reavis & Pogue or other New
     York counsel to the Company reasonably satisfactory to the Administrative
     Agent, in substantially the form of Exhibit L, and as to such other matters
     as any Lender through

                                       39
<PAGE>   44

     the Administrative Agent may reasonably request, with such assumptions,
     qualifications and exceptions as the Administrative Agent may approve.

          (f) A letter from the Process Agent, in substantially the form of
     Exhibit I, agreeing to act as Process Agent for such Borrowing Subsidiary,
     as the case may be, and to forward forthwith all process received by it to
     such Borrowing Subsidiary.

          (g) Evidence satisfactory to the Administrative Agent that all
     advances, accrued interest and other fees and any other amounts owing to
     the lenders and the agents under the Existing 364-Day Facility and the
     Existing 5-Year Facility shall have been, or simultaneously with the
     initial Advances are being, paid in full, and the commitments to make
     advances thereunder shall have been canceled.

          SECTION III.4 Conditions Precedent to Each Borrowing. The obligation
of each Lender to make an Advance (including the initial Advance, but excluding
any continuation or Conversion of an Advance) on the occasion of any Borrowing
shall be subject to the conditions precedent that on or before the date of such
Borrowing this Agreement shall have become effective pursuant to Section 3.1
and, before and immediately after giving effect to such Borrowing and to the
application of the proceeds therefrom, the following statements shall be true
and correct, and the giving by the applicable Borrower or the Company on such
Borrower's behalf of the applicable Notice of Borrowing and the acceptance by
the applicable Borrower of the proceeds of such Borrowing shall constitute its
representation and warranty that on and as of the date of such Borrowing, before
and immediately after giving effect thereto and to the application of the
proceeds therefrom, the following statements are true and correct:

          (i) each representation and warranty contained in Section 4.1 is
     correct in all material respects as though made on and as of such date; and

          (ii) no event has occurred and is continuing, or would result from
     such Borrowing, which constitutes an Event of Default or a Default.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

          SECTION IV.1 Representations and Warranties of the Borrowers. Each
Borrower represents and warrants as follows:

          (a) The Company is a Business Entity duly formed, validly existing
     and, if applicable, in good standing under the laws of the State of
     Delaware. Each Principal Subsidiary is duly organized or formed, validly
     existing and, if applicable, in good standing in the jurisdiction of its
     organization or formation. The Company and each Principal Subsidiary
     possess all applicable Business Entity powers and all other authorizations
     and licenses necessary to engage in its business and operations as now
     conducted, the failure to obtain or maintain which would have a Material
     Adverse Effect.

                                       40
<PAGE>   45

          (b) The execution, delivery and performance by each Borrower of this
     Agreement, each Joinder Agreement, if any, to which it is a party and its
     Notes (as applicable) are within such Borrower's applicable Business Entity
     powers, have been duly authorized by all necessary applicable Business
     Entity action, and do not contravene (A) such Borrower's organizational
     documents or (B) any law or any material contractual restriction binding on
     or affecting such Borrower.

          (c) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body is required
     for the due execution, delivery and performance by such Borrower of this
     Agreement, each Joinder Agreement, if any, to which it is a party or its
     Notes (as applicable), except those necessary to comply with laws, rules,
     regulations and orders required in the ordinary course to comply with
     ongoing obligations of such Borrower under Section 5.1(a) and (b).

          (d) This Agreement constitutes, its Notes and each Joinder Agreement,
     if any, to which it is a party (as applicable) when delivered hereunder
     shall constitute the legal, valid and binding obligations of each Borrower,
     enforceable against such Borrower in accordance with their respective
     terms, except as may be limited by any applicable bankruptcy, insolvency,
     reorganization, moratorium or similar laws affecting creditors' rights
     generally or by general principles of equity.

          (e) The consolidated balance sheet of the Company and its consolidated
     Subsidiaries as at December 31, 1999, and the related consolidated
     statements of income and cash flows of the Company and its consolidated
     Subsidiaries for the fiscal year then ended, reported on by
     PricewaterhouseCoopers LLP, independent public accountants, copies of which
     have been furnished to the Administrative Agent and the Lenders prior to
     the date hereof, fairly present the consolidated financial condition of the
     Company and its consolidated Subsidiaries as at such date and the
     consolidated results of the operations of the Company and its consolidated
     Subsidiaries for the period ended on such date, all in accordance with GAAP
     consistently applied, and since December 31, 1999, there has been no
     material adverse change in such condition or operations. The unaudited
     consolidated balance sheet of the Company and its consolidated Subsidiaries
     as of March 31, 2000, and the related consolidated statements of income and
     cash flows of the Company and its consolidated Subsidiaries for the three
     months then ended, certified by the chief financial officer of the Company,
     copies of which have been furnished to the Administrative Agent and the
     Lenders prior to the date hereof, fairly present the consolidated results
     of operations of the Company and its consolidated Subsidiaries for the
     three months then ended, all in accordance with GAAP consistently applied
     (except as approved by the chief financial officer of the Company and as
     disclosed therein) and subject to normal year-end audit adjustments.

          (f) Each of the Company and its Subsidiaries is in compliance with all
     laws, rules, regulations and orders of any governmental authority
     applicable to it or its property

                                       41
<PAGE>   46

     except where the failure to comply, individually or in the aggregate, would
     not in the reasonable judgment of the Company be expected to result in a
     Material Adverse Effect.

          (g) There is no action, suit or proceeding pending, or to the
     knowledge of any Borrower threatened, against or involving the Company or
     any Principal Subsidiary in any court, or before any arbitrator of any
     kind, or before or by any governmental body, existing as at the Effective
     Date which in the reasonable judgment of the Company (taking into account
     the exhaustion of all appeals) would have a Material Adverse Effect, or
     which purports to affect the legality, validity, binding effect or
     enforceability of this Agreement or the Notes.

          (h) The Company and each Principal Subsidiary have duly filed all tax
     returns required to be filed, and have duly paid and discharged all taxes,
     assessments and governmental charges upon it or against its properties now
     due and payable, the failure to file or pay which, as applicable, would
     have a Material Adverse Effect, unless and to the extent only that the same
     are being contested in good faith and by appropriate proceedings by the
     Company or the appropriate Subsidiary.

          (i) The Company and each Principal Subsidiary have good title to their
     respective properties and assets, free and clear of all mortgages, liens
     and encumbrances, except for mortgages, liens and encumbrances (including
     covenants, restrictions, rights, easements and minor irregularities in
     title) which do not materially interfere with the business or operations of
     the Company or such Subsidiary as presently conducted or which are
     permitted by Section 5.2(a), and except that no representation or warranty
     is being made with respect to Margin Stock.

          (j) No Termination Event has occurred or is reasonably expected to
     occur with respect to any Plan which, with the giving of notice or lapse of
     time, or both, would constitute an Event of Default under Section 7.1(g).

          (k) Each Plan has complied with the applicable provisions of ERISA and
     the Code where the failure to so comply would reasonably be expected to
     result in an aggregate liability that would exceed 10% of the Net Worth of
     the Company.

          (l) The statement of assets and liabilities of each Plan and the
     statements of changes in fund balance and in financial position, or the
     statement of changes in net assets available for plan benefits, for the
     most recent plan year for which an accountant's report with respect to such
     Plan has been prepared, copies of which report have been furnished to the
     Administrative Agent, fairly present the financial condition of such Plan
     as at such date and the results of operations of such Plan for the plan
     year ended on such date.

          (m) Neither the Company nor any ERISA Affiliate has incurred, or is
     reasonably expected to incur, any Withdrawal Liability to any Multiemployer
     Plan which, when aggregated with all other amounts required to be paid to
     Multiemployer Plans in

                                       42
<PAGE>   47

     connection with Withdrawal Liability (as of the date of determination),
     would exceed 10% of the Net Worth of the Company.

          (n) Neither the Company nor any ERISA Affiliate has received any
     notification that any Multiemployer Plan is in reorganization, insolvent or
     has been terminated, within the meaning of Title IV of ERISA, and no
     Multiemployer Plan is reasonably expected to be in reorganization,
     insolvent or to be terminated within the meaning of Title IV of ERISA the
     effect of which reorganization, insolvency or termination would be the
     occurrence of an Event of Default under Section 7.1(i).

          (o) No Borrower is an "investment company" or a "company" controlled
     by an "investment company" within the meaning of the Investment Company Act
     of 1940, as amended.

          (p) No Borrower is a "holding company" or a "subsidiary company" of a
     "holding company" within the meaning of the Public Utility Holding Company
     Act of 1935, as amended.

          (q) The borrowings by the Borrowers under this Agreement and the Notes
     and the applications of the proceeds thereof as provided herein will not
     violate Regulation T, U or X of the Board of Governors of the Federal
     Reserve System.

All representations and warranties made by the Borrowers herein or made in any
certificate delivered pursuant hereto shall survive the making of the Advances
and the execution and delivery to the Lenders of this Agreement and the Notes.

                                    ARTICLE V

                           COVENANTS OF THE BORROWERS

          SECTION V.1 Affirmative Covenants. So long as any amount payable by
any Borrower hereunder or under any Note shall remain unpaid or any Lender shall
have any Commitment hereunder, each Borrower will, unless the Majority Lenders
shall otherwise consent in writing:

          (a) Preservation of Existence, Etc. Preserve and maintain, and, in the
     case of the Company, cause each Principal Subsidiary to preserve and
     maintain, its existence, rights (organizational and statutory) and material
     franchises, except as otherwise permitted by Section 5.2(d) or 5.2(e) and
     except that nothing herein shall prevent any change in Business Entity form
     of the Company or any Principal Subsidiary.

          (b) Compliance with Laws, Etc. Comply, and, in the case of the
     Company, cause each Principal Subsidiary to comply, in all material
     respects with all applicable laws, rules, regulations and orders (including
     all environmental laws and laws requiring

                                       43
<PAGE>   48

     payment of all taxes, assessments and governmental charges imposed upon it
     or upon its property except to the extent contested in good faith by
     appropriate proceedings) the failure to comply with which would have a
     Material Adverse Effect.

          (c) Visitation Rights. At any reasonable time and from time to time,
     permit the Administrative Agent or any of the Lenders or any agents or
     representatives thereof, to examine and make copies of and abstracts from
     the records and books of account of, and visit the properties of, the
     Company and any of its Subsidiaries, and to discuss the affairs, finances
     and accounts of the Company and any of its Subsidiaries with any of their
     officers and with their independent certified public accountants.

          (d) Books and Records. Keep, and, in the case of the Company, cause
     each of its Subsidiaries to keep, proper books of record and account, in
     which full and correct entries shall be made of all its respective
     financial transactions and the assets and business of the Company and each
     of its Subsidiaries, as applicable, in accordance with GAAP either (i)
     consistently applied or (ii) applied in a changed manner provided such
     change shall have been disclosed to the Administrative Agent and shall have
     been consented to by the accountants which (as required by Section 5.3(b))
     report on the financial statements of the Company and its consolidated
     Subsidiaries for the fiscal year in which such change shall have occurred.

          (e) Maintenance of Properties, Etc. Maintain and preserve, and, in the
     case of the Company, cause each Principal Subsidiary to maintain and
     preserve, all of its properties which are used in the conduct of its
     business in good working order and condition, ordinary wear and tear
     excepted, to the extent that any failure to do so would have a Material
     Adverse Effect.

          (f) Maintenance of Insurance. Maintain, and, in the case of the
     Company, cause each Principal Subsidiary to maintain, insurance with
     responsible and reputable insurance companies or associations in such
     amounts and covering such risks as is usually carried by companies engaged
     in similar businesses and owning similar properties in the same general
     areas in which the Company or such Subsidiary operates.

          SECTION V.2 Negative Covenants. So long as any amount payable by any
Borrower hereunder or under any Note shall remain unpaid or any Lender shall
have any Commitment hereunder, each Borrower will not, unless the Majority
Lenders shall otherwise consent in writing:

          (a) Liens, Etc. (i) Create, assume or suffer to exist, or, in the case
     of the Company, permit any Principal Subsidiary to create, assume or suffer
     to exist, any Liens upon or with respect to any of its Equity Interests in
     any Principal Subsidiary, whether now owned or hereafter acquired, or (ii)
     create or assume, or, in the case of the Company, permit any Principal
     Subsidiary to create or assume, any Liens upon or with respect to any other
     assets material to the consolidated operations of the Company and its
     consolidated Subsidiaries taken as a whole securing the payment of
     Indebtedness and

                                       44
<PAGE>   49

     Guaranties in an aggregate amount (determined without duplication of amount
     (so that the amount of a Guaranty will be excluded to the extent the
     Indebtedness Guaranteed thereby is included in computing such aggregate
     amount)) exceeding the greater of (x) $300,000,000 and (y) 10% of Net Worth
     as at the date of such creation or assumption; provided, however, that this
     subsection (a) shall not apply to:

               (A) Liens on the Equity Interests in, or Indebtedness or other
          obligations of, or assets of, any Project Financing Subsidiary (or any
          Equity Interests in, or Indebtedness or other obligations of, any
          Business Entity which are directly or indirectly owned by any Project
          Financing Subsidiary) securing the payment of a Project Financing and
          related obligations;

               (B) Liens on (1) assets acquired by the Company or any of its
          Subsidiaries after February 11, 1992 to the extent that such Liens
          existed at the time of such acquisition and were not placed thereon by
          or with the consent of the Company in contemplation of such
          acquisition and (2) Equity Interests acquired after February 11, 1992
          in a Business Entity that has become or becomes a Subsidiary of the
          Company, or on assets of any such Business Entity, to the extent that
          such Liens existed at the time of such acquisition and were not placed
          thereon by or with the consent of the Company in contemplation of such
          acquisition;

               (C) Liens created by any Alternate Program or any document
          executed by any Borrower or any Subsidiary in connection therewith;

               (D) Liens on Margin Stock;

               (E) Permitted Liens;

               (F) Liens arising out of the refinancing, extension, renewal or
          refunding of any Indebtedness or Guaranty or other obligation secured
          by any Lien permitted by any of the foregoing clauses of this Section,
          provided that the principal amount of such Indebtedness or Guaranty or
          other obligation is not increased (except by the amount of costs
          reasonably incurred in connection with the issuance thereof) beyond
          the highest previous amount thereof and such Indebtedness or Guaranty
          or other obligation is outstanding immediately prior to the
          refinancing, extension, renewal or refunding and is not secured by any
          additional assets that would not have been permitted by this Section
          to secure the Indebtedness or Guaranty or other obligation refinanced,
          extended, renewed or refunded; and

               (G) Liens on products and proceeds (including dividend, interest
          and like payments on, and insurance and condemnation proceeds and
          rental, lease, licensing and similar proceeds) of, and property
          evidencing or embodying, or constituting rights or other general
          intangibles directly relating to or arising out of, and accessions and
          improvements to, collateral subject to Liens permitted by this Section
          5.2(a).

                                       45
<PAGE>   50

          (b) Consolidated Debt and Guarantees to Capitalization. Permit the
     ratio of (A) the sum of (1) the aggregate amount of consolidated Debt of
     the Company and its consolidated Subsidiaries (without duplication of
     amount under this clause (A) and determined as to all of the foregoing
     entities on a consolidated basis) plus (2) the aggregate amount of
     consolidated Guaranties of the Company and its consolidated Subsidiaries
     (without duplication of amount under this clause (A) and determined as to
     all of the foregoing entities on a consolidated basis) to (B)
     Capitalization of the Company (without duplication and determined as to all
     of the foregoing entities on a consolidated basis) to exceed .7 to 1.

          (c) Debt, Etc. In the case of the Company, permit any of its
     consolidated Subsidiaries to incur or become liable for any Debt, any
     Guaranty or any reimbursement obligation with respect to any letter of
     credit (other than any Project Financing), if, immediately after giving
     effect to such Debt, Guaranty or reimbursement obligation and the receipt
     and application of any proceeds thereof or value received in connection
     therewith, the aggregate amount (determined without duplication of amount)
     of Debt, Guaranties and letter of credit reimbursement obligations of the
     Company's consolidated Subsidiaries owing to Persons other than the Company
     and its consolidated Subsidiaries (other than any Project Financing) would
     exceed the greater of (x) $600,000,000 and (y) 10% of Net Worth determined
     as at the date of incurrence or assumption thereof; provided, however, that
     the following Debt, Guaranties or reimbursement obligations shall be
     excluded from the application of, and calculation set forth in, this
     paragraph (c): (A) Debt, Guaranties or reimbursement obligations incurred
     by (x) Mojave or (y) EPNGC, (B) Debt, Guaranties or reimbursement
     obligations arising under (x) the EPTPC Facility or (y) this Agreement or
     the 364-Day Facility, (C) Debt, Guaranties or reimbursement obligations
     incurred by El Paso Field Services Company up to an amount not to exceed at
     any time outstanding the tangible net worth of El Paso Field Services
     Company, provided that such Debt may be guaranteed by the Company, (D)
     Excluded Acquisition Debt, (E) successive extensions, refinancings or
     replacements (at the same Subsidiary or at any other consolidated
     Subsidiary of the Company) of Debt, Guaranties or reimbursement obligations
     (or commitments in respect thereof) referred to in clauses (A), (B) and (D)
     above and in an amount not in excess of the amounts so extended, refinanced
     or replaced (or the amount of commitments in respect thereof) and (F) Debt,
     Guarantees or reimbursement obligations incurred by Tennessee pursuant to
     one or more commercial paper programs allowing for the issuance by
     Tennessee of items of commercial paper having maturity dates not later than
     one year from the dates of their respective issuance provided that such
     Debt, Guarantees or reimbursement obligations of Tennessee shall be in an
     aggregate amount not to exceed at any time the excess of (x) the sum of (1)
     the aggregate amount of Commitments and (2) the aggregate amount of
     Commitments as defined in the 364-Day Facility, over (y) the sum of (1) the
     aggregate amount of Advances, (2) the aggregate amount of Advances, as
     defined in and outstanding pursuant to, the 364-Day Facility, and (3) the
     aggregate principal amount of commercial paper outstanding from time to
     time that (I) is issued by the Company and its

                                       46
<PAGE>   51

     Subsidiaries (other than Tennessee) and (II) relies upon credit
     availability under either this Agreement or the 364-Day Facility for
     commercial paper liquidity purposes.

          (d) Sale, Etc. of Assets. Sell, lease or otherwise transfer, or, in
     the case of the Company, permit any Principal Subsidiary to sell, lease or
     otherwise transfer, (in either case, whether in one transaction or in a
     series of transactions) assets constituting all or substantially all of the
     consolidated assets of the Company and its Principal Subsidiaries taken as
     a whole, provided that provisions of this subsection (d) shall not apply
     to:

               (i) any sale of receivables and related rights pursuant to any
          Alternate Program;

               (ii) any Project Financing Subsidiary and the assets thereof;

               (iii) sales, leases or other transfers of assets or capital stock
          of any Subsidiary of the Company other than any Principal Subsidiary;

               (iv) any sale of Margin Stock;

               (v) any sale of up to 20% of the equity of El Paso Field Services
          Company in an initial public offering of such Person"s Equity
          Interests ;

               (vi) any sale, lease or other transfer to the Company or any
          Principal Subsidiary, or to any Business Entity that after giving
          effect to such transfer will become and be either (A) a Principal
          Subsidiary in which the Company's direct or indirect equity interest
          will be at least as great as its direct or indirect equity interest in
          the transferor immediately prior thereto or (B) a directly or
          indirectly wholly-owned Principal Subsidiary; and

               (vii) any transfer permitted by Section 5.2(e); and

               (viii) any transfer to the Company or any of its Subsidiaries of
          any stock or assets other than FERC regulated assets (or stock or any
          other equity interest in an entity owning FERC regulated assets) used
          in the mainline gas transmission business; provided that no Event of
          Default or Default shall have occurred and be continuing before and
          immediately after giving effect to such transfer.

          (e) Mergers, Etc. Merge or consolidate with any Person, or in the case
     of the Company permit any of its Principal Subsidiaries to merge or
     consolidate with any Person, except that (i) any Principal Subsidiary may
     merge or consolidate with (or liquidate into) any other Subsidiary (other
     than a Project Financing Subsidiary, unless the successor Business Entity
     is not treated as a Project Financing Subsidiary under this Agreement) or
     may merge or consolidate with (or liquidate into) the Company, provided
     that (A) if such Principal Subsidiary merges or consolidates with (or
     liquidates into) the

                                       47
<PAGE>   52

     Company, either (x) the Company shall be the continuing or surviving
     Business Entity or (y) the continuing or surviving Business Entity is
     organized under the laws of the United States or a State thereof and
     unconditionally assumes by agreement all of the performance obligations and
     payment Obligations of the Company under this Agreement and the Notes and
     (B) if any such Principal Subsidiary merges or consolidates with (or
     liquidates into) any other Subsidiary, one or more Business Entities that
     are Subsidiaries are the continuing or surviving Business Entity (ies) and,
     if either such Subsidiary is not directly or indirectly wholly-owned by the
     Company, such merger or consolidation is on an arm's length basis, and (ii)
     the Company or any Principal Subsidiary may merge or consolidate with any
     other Business Entity (that is, in addition to the Company or any
     Subsidiary), provided that (A) if the Company merges or consolidates with
     any such other Business Entity, either (x) the Company is the continuing or
     surviving Business Entity or (y) the continuing or surviving Business
     Entity is organized under the laws of the United States or a State thereof
     and unconditionally assumes by agreement all of the performance obligations
     and payment Obligations of the Company under this Agreement and the Notes,
     (B) if any Principal Subsidiary merges or consolidates with any such other
     Business Entity, the surviving Business Entity is directly or indirectly a
     wholly-owned Principal Subsidiary of the Company, (C) if either the Company
     or any Principal Subsidiary merges or consolidates with any such other
     Business Entity, after giving effect to such merger or consolidation no
     Event of Default or Default shall have occurred and be continuing and (D)
     if any Principal Subsidiary which is a party to any merger, consolidation
     or liquidation permitted by this paragraph (e) is a Borrowing Subsidiary,
     either (x) such Principal Subsidiary shall be the continuing or surviving
     Business Entity or (y) the continuing or surviving Business Entity is
     organized under the laws of the United States or a State thereof and
     unconditionally assumes by agreement all of the performance obligations and
     payment Obligations of such Borrowing Subsidiary under this Agreement and
     the Notes (the Borrowers and the Lenders agreeing that it is their
     intention that each Business Entity that is a Borrower be organized under
     the laws of the United States or a State thereof).

          SECTION V.3 Reporting Requirements. So long as any amount payable by
any Borrower hereunder or under any Note shall remain unpaid or any Lender shall
have any Commitment hereunder, the Company will furnish to each Lender in such
reasonable quantities as shall from time to time be requested by such Lender:

          (a) as soon as publicly available and in any event within 60 days
     after the end of each of the first three fiscal quarters of each fiscal
     year of each of the Company and EPNGC, a consolidated balance sheet of each
     of the Company and EPNGC and its respective consolidated subsidiaries as of
     the end of such quarter, and consolidated statements of income and cash
     flows of each of the Company and EPNGC and its respective consolidated
     subsidiaries each for the period commencing at the end of the previous
     fiscal year and ending with the end of such quarter, certified (subject to
     normal year-end adjustments) as being fairly stated in all material
     respects by the chief financial officer, controller or treasurer of the
     Company and accompanied by a certificate of such officer stating (i)
     whether or not such officer has knowledge of the occurrence of any

                                       48
<PAGE>   53

     Event of Default which is continuing hereunder or of any event not
     theretofore remedied which with notice or lapse of time or both would
     constitute such an Event of Default and, if so, stating in reasonable
     detail the facts with respect thereto, (ii) all relevant facts in
     reasonable detail to evidence, and the computations as to, whether or not
     the Company is in compliance with the requirements set forth in subsections
     (b) and (c) of Section 5.2, and (iii) a listing of all Principal
     Subsidiaries and consolidated Subsidiaries of the Company showing the
     extent of its direct and indirect holdings of their stocks;

          (b) as soon as publicly available and in any event within 120 days
     after the end of each fiscal year of each of the Company and EPNGC, a copy
     of the annual report for such year for each of the Company and EPNGC and
     its respective consolidated Subsidiaries containing financial statements
     for such year reported by nationally recognized independent public
     accountants acceptable to the Lenders, accompanied by (i) a report signed
     by said accountants stating that such financial statements have been
     prepared in accordance with GAAP and (ii) a letter from such accountants
     stating that in making the investigations necessary for such report they
     obtained no knowledge, except as specifically stated therein, of any Event
     of Default which is continuing hereunder or of any event not theretofore
     remedied which with notice or lapse of time or both would constitute such
     an Event of Default;

          (c) within 120 days after the close of each of the Company's fiscal
     years, a certificate of the chief financial officer, controller or
     treasurer of the Company stating (i) whether or not he has knowledge of the
     occurrence of any Event of Default which is continuing hereunder or of any
     event not theretofore remedied which with notice or lapse of time or both
     would constitute such an Event of Default and, if so, stating in reasonable
     detail the facts with respect thereto, (ii) all relevant facts in
     reasonable detail to evidence, and the computations as to, whether or not
     the Company is in compliance with the requirements set forth in subsections
     (b) and (c) of Section 5.2 and (iii) a listing of all Principal
     Subsidiaries and consolidated Subsidiaries of the Company showing the
     extent of its direct and indirect holdings of their stocks;

          (d) promptly after the sending or filing thereof, copies of all
     publicly available reports which the Company or any Principal Subsidiary
     sends to any of its security holders and copies of all publicly available
     reports and registration statements which the Company or any Principal
     Subsidiary files with the Securities and Exchange Commission or any
     national securities exchange other than registration statements relating to
     employee benefit plans and to registrations of securities for selling
     security holders;

          (e) within 10 days after sending or filing thereof, a copy of FERC
     Form No. 2: Annual Report of Major Natural Gas Companies, sent or filed by
     the Company to or with the FERC with respect to each fiscal year of the
     Company;

          (f) promptly in writing, notice of all litigation and of all
     proceedings before any governmental or regulatory agencies against or
     involving the Company or any Principal Subsidiary, except any litigation or
     proceeding which in the reasonable judgment of the Company (taking into
     account the exhaustion of all appeals) is not likely

                                       49
<PAGE>   54

     to have a material adverse effect on the consolidated financial condition
     of the Company and its consolidated Subsidiaries taken as a whole;

          (g) within three Business Days after an executive officer of the
     Company obtains knowledge of the occurrence of any Event of Default which
     is continuing or of any event not theretofore remedied which with notice or
     lapse of time, or both, would constitute an Event of Default, notice of
     such occurrence together with a detailed statement by a responsible officer
     of the Company of the steps being taken by the Company or the appropriate
     Subsidiary to cure the effect of such event;

          (h) as soon as practicable and in any event (i) within 30 days after
     the Company or any ERISA Affiliate knows or has reason to know that any
     Termination Event described in clause (a) of the definition of Termination
     Event with respect to any Plan has occurred and (ii) within 10 days after
     the Company or any ERISA Affiliate knows or has reason to know that any
     other Termination Event with respect to any Plan has occurred, a statement
     of the chief financial officer or treasurer of the Company describing such
     Termination Event and the action, if any, which the Company or such ERISA
     Affiliate proposes to take with respect thereto;

          (i) promptly and in any event within two Business Days after receipt
     thereof by the Company or any ERISA Affiliate, copies of each notice
     received by the Company or any ERISA Affiliate from the PBGC stating its
     intention to terminate any Plan or to have a trustee appointed to
     administer any Plan;

          (j) promptly and in any event within 30 days after the filing thereof
     with the Internal Revenue Service, copies of each Schedule B (Actuarial
     Information) to the annual report (Form 5500 Series) with respect to each
     Single Employer Plan;

          (k) promptly and in any event within five Business Days after receipt
     thereof by the Company or any ERISA Affiliate from the sponsor of a
     Multiemployer Plan, a copy of each notice received by the Company or any
     ERISA Affiliate concerning (i) the imposition of Withdrawal Liability by a
     Multiemployer Plan, (ii) the determination that a Multiemployer Plan is, or
     is expected to be, in reorganization or insolvent within the meaning of
     Title IV of ERISA, (iii) the termination of a Multiemployer Plan within the
     meaning of Title IV of ERISA, or (iv) the amount of liability incurred, or
     expected to be incurred, by the Company or any ERISA Affiliate in
     connection with any event described in clause (i), (ii) or (iii) above; and

          (l) as soon as practicable but in any event within 60 days of any
     notice of request therefor, such other information respecting the financial
     condition and results of operations of the Company or any Subsidiary of the
     Company as any Lender through the Administrative Agent may from time to
     time reasonably request.

          Each balance sheet and other financial statement furnished pursuant to
subsections (a) and (b) of this Section 5.3 shall contain comparative financial
information which conforms to

                                       50
<PAGE>   55

the presentation required in Form 10-Q and 10-K, as appropriate, under the
Securities Exchange Act of 1934, as amended.

          SECTION V.4 Restrictions on Material Subsidiaries. The Company will
not, and will not permit any Material Subsidiary, to enter into any agreement or
understanding pursuant to which (a) any non-equity interest claim the Company
may have against any Material Subsidiary would be subordinate in any manner to
the payment of any other obligation of such Material Subsidiary (other than
waivers or subordination of subrogation, contribution or similar rights under
Guaranties and similar agreements) or (b) by its terms limits or restricts the
ability of such Material Subsidiary to make funds available to the Company
(whether by dividend or other distribution, by replacement of any inter-company
advance or otherwise) if, in any such case referred to in this Section 5.4,
there is, at the time any such agreement is entered into, a reasonable
likelihood that all such agreements and understandings, considered together,
would materially and adversely affect the ability of the Company to meet its
obligations as they become due.

                                   ARTICLE VI

                                   GUARANTEES

          SECTION VI.1 Guarantees. (a) Subject to the provisions of Section
6.1(b), each Borrower hereby unconditionally and irrevocably guarantees to the
Administrative Agent, for the ratable benefit of the Lenders and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment by each other Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations owing by such other
Borrower.

          (b) Anything in this Article VI to the contrary notwithstanding, the
maximum liability of each Borrower (other than a Borrower which is guaranteeing
the Obligations of its Subsidiaries) under this Article VI shall in no event
exceed the amount which can be guaranteed by such Borrowing Subsidiary under
applicable federal and state laws relating to the insolvency of debtors.

          (c) Each Borrower agrees that the Obligations owing by any other
Borrower may at any time and from time to time exceed the amount of the
liability of such other Borrower under this Article VI without impairing the
guarantee of such Borrower under this Article VI or affecting the rights and
remedies of the Administrative Agent or any Lender under this Article VI.

          (d) No payment or payments made by any Borrower or any other Person or
received or collected by the Administrative Agent or any Lender from any
Borrower or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application, at any time or from time to time, in
reduction of or in payment of the Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of the Borrowers under this Article VI

                                       51
<PAGE>   56

which shall, notwithstanding any such payment or payments, continue until the
Obligations are paid in full and the Commitments are terminated.

          (e) Each Borrower agrees that whenever, at any time, or from time to
time, it shall make any payment to the Administrative Agent or any Lender on
account of its liability under this Article VI, it will notify the
Administrative Agent in writing that such payment is made under this Article VI
for such purpose.

          SECTION VI.2 No Subrogation. Notwithstanding any payment or payments
made by any Borrower under this Article VI or any set-off or application of
funds of such Borrower by the Administrative Agent or any Lender, such Borrower
shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Lender against any other Borrower or against any
collateral security or guarantee or right of offset held by the Administrative
Agent or any Lender for the payment of the Obligations, nor shall such Borrower
seek or be entitled to seek any contribution or reimbursement from any other
Borrower in respect of payments made by such Borrower hereunder, until all
amounts owing to the Administrative Agent and the Lenders by the other Borrowers
on account of the Obligations are paid in full and the Commitments are
terminated. If any amount shall be paid to any Borrower on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full, such amount shall be held by such Borrower in trust for the
Administrative Agent and the Lenders, segregated from other funds of such
Borrower, and shall, forthwith upon receipt by such Borrower, be turned over to
the Administrative Agent in the exact form received by such Borrower (duly
indorsed by such Borrower to the Administrative Agent, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
the Administrative Agent may determine.

          SECTION VI.3 Amendments, etc. with respect to the Obligations; Waiver
of Rights. Each Borrower shall remain obligated under this Article VI
notwithstanding that, without any reservation of rights against such Borrower,
and without notice to or further assent by such Borrower, any demand for payment
of any of the Obligations made by the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender, and any of the Obligations
continued, and the Obligations, or the liability of any other party upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and this
Agreement, any Notes and any other documents executed and delivered in
connection herewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Administrative Agent (or the Majority Lenders, as the
case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any
Lender for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Administrative Agent nor any Lender shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Obligations or for this Agreement or any property
subject thereto. When making any demand hereunder against any Borrower, the
Administrative Agent or any Lender may, but shall be under no obligation to,
make a similar

                                       52
<PAGE>   57

demand on the applicable Borrowing Subsidiaries or any other guarantor, and any
failure by the Administrative Agent or any Lender to make any such demand or to
collect any payments from the other Borrowers or any such other guarantor or any
release of the other Borrowers or such other guarantor shall not relieve such
Borrower of its obligations or liabilities hereunder, and shall not impair or
affect the rights and remedies, express or implied, or as a matter of law, of
the Administrative Agent or any Lender against such Borrower for the purposes
hereof "demand" shall include the commencement and continuance of any legal
proceedings.

          SECTION VI.4 Guarantee Absolute and Unconditional. Each Borrower
waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by the Administrative
Agent or any Lender upon this Agreement or acceptance of this Agreement; the
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon this Agreement; and all dealings between any Borrower, on the one hand, and
the Administrative Agent and the Lenders, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon this
Agreement. Each Borrower waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the other Borrowers with
respect to the Obligations. The guarantee contained in this Article VI shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (a) the validity, regularity or enforceability of this
Agreement, any Note, any of the Obligations or any other collateral security
therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Administrative Agent or any Lender, (b) any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any
Borrower against the Administrative Agent or any Lender, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of any Borrower)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of any Borrower for the Obligations, or of the Borrowers under this
Agreement, in bankruptcy or in any other instance. When pursuing its rights and
remedies hereunder against any Borrower, the Administrative Agent and any Lender
may, but shall be under no obligation to, pursue such rights and remedies as it
may have against any other Borrower or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset with
respect thereto, and any failure by the Administrative Agent or any Lender to
pursue such other rights or remedies or to collect any payments from other
Borrowers or any such other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of
any other Borrower or any such other Person or of any such collateral security,
guarantee or right of offset, shall not relieve any Borrower of any liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Administrative Agent or
any Lender against such Borrower. The guarantees contained in this Article VI
shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Borrower and its successors and assigns
thereof, and shall inure to the benefit of the Administrative Agent and the
Lenders, and their respective successors, indorsees, transferees and assigns,
until all the Obligations and the obligations of the Borrowers under this
Agreement shall have been satisfied by payment in full and the Commitments shall
be terminated, notwithstanding that from time to time during the term of this
Agreement the Borrowers may be free from any Obligations.

                                       53
<PAGE>   58

          SECTION VI.5 Reinstatement. The provisions of this Article VI shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Obligations is rescinded or must
otherwise be restored or returned by the Administrative Agent or any Lender upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Borrower or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, any Borrower or any
substantial part of its property, or otherwise, all as though such payments had
not been made.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

          SECTION VII.1 Event of Default. If any of the following events
("Events of Default") shall occur and be continuing:

          (a) Any Borrower shall fail to pay any installment of principal of any
     of its Advances or Notes when due, or any interest on any of its Advances
     or Notes or any other amount payable by it hereunder within five Business
     Days after the same shall be due; or

          (b) Any representation or warranty made or deemed made by any Borrower
     herein or by any Borrower (or any of its officers) in connection with this
     Agreement shall prove to have been incorrect in any material respect when
     made or deemed made; or

          (c) Any Borrower shall fail to perform or observe any other term,
     covenant or agreement contained in this Agreement on its part to be
     performed or observed and any such failure shall remain unremedied for 30
     days after written notice thereof shall have been given to such Borrower by
     the Administrative Agent or by any Lender with a copy to the Administrative
     Agent; or

          (d) The Company or any Principal Subsidiary shall fail to pay any Debt
     or Guaranty (excluding Debt incurred pursuant hereto) of the Company or
     such Principal Subsidiary in an aggregate principal amount of $200,000,000
     or more, at such time, or any installment of principal thereof or interest
     or premium thereon, when due (whether by scheduled maturity, required
     prepayment, acceleration, demand or otherwise) and such failure shall
     continue after the applicable grace period, if any, specified in the
     agreement or instrument relating to such Debt or Guaranty; or any other
     default under any agreement or instrument relating to any such Debt, or any
     other event, shall occur and shall continue after the applicable grace
     period, if any, specified in such agreement or instrument, if the effect of
     such default or event is to accelerate the maturity of such Debt; or any
     such Debt shall be required to be prepaid (other than by a regularly
     scheduled required prepayment), prior to the stated maturity thereof, as a
     result of either (i) any default under any agreement or instrument relating
     to any such Debt or (ii) the occurrence of any other event (other than an
     issuance, sale or other disposition of stock or other assets, or an

                                       54
<PAGE>   59

     incurrence or issuance of Indebtedness or other obligations, giving rise to
     a repayment or prepayment obligation in respect of such Debt) the effect of
     which would otherwise be to accelerate the maturity of such Debt; provided
     that, notwithstanding any provision contained in this subsection (d) to the
     contrary, to the extent that pursuant to the terms of any agreement or
     instrument relating to any Debt or Guaranty referred to in this subsection
     (d) (or in the case of any such Guaranty, relating to any obligations
     Guaranteed thereby), any sale, pledge or disposal of Margin Stock, or
     utilization of the proceeds of such sale, pledge or disposal, would result
     in a breach of any covenant contained therein or otherwise give rise to a
     default or event of default thereunder and/or acceleration of the maturity
     of the Debt or obligations extended pursuant thereto, or payment pursuant
     to any Guaranty, and as a result of such terms or of such sale, pledge,
     disposal, utilization, breach, default, event of default or acceleration or
     nonpayment under such Guaranty, or the provisions thereof relating thereto,
     this Agreement or any Advance hereunder would otherwise be subject to the
     margin requirements or any other restriction under Regulation U issued by
     the Board of Governors of the Federal Reserve System, then such breach,
     default, event of default or acceleration, or nonpayment under any
     Guaranty, shall not constitute a default or Event of Default under this
     subsection (d); or

          (e)(i) The Company or any Principal Subsidiary shall (A) generally not
     pay its debts as such debts become due; or (B) admit in writing its
     inability to pay its debts generally; or (C) make a general assignment for
     the benefit of creditors; or (ii) any proceeding shall be instituted or
     consented to by the Company or any Principal Subsidiary seeking to
     adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
     reorganization, arrangement, adjustment, protection, relief, or composition
     of it or its debts under any law relating to bankruptcy, insolvency or
     reorganization or relief of debtors, or seeking the entry of an order for
     relief or the appointment of a receiver, trustee, or other similar official
     for it or for any substantial part of its property; or (iii) any such
     proceeding shall have been instituted against the Company or any Principal
     Subsidiary and either such proceeding shall not be stayed or dismissed for
     60 consecutive days or any of the actions referred to above sought in such
     proceeding (including the entry of an order for relief against it or the
     appointment of a receiver, trustee, custodian or other similar official for
     it or any substantial part of its property) shall occur; or (iv) the
     Company or any Principal Subsidiary shall take any corporate action to
     authorize any of the actions set forth above in this subsection (e); or

          (f) Any judgment or order of any court for the payment of money in
     excess of $100,000,000 shall be rendered against the Company or any
     Principal Subsidiary and either (i) enforcement proceedings shall have been
     commenced and are continuing or have been completed by any creditor upon
     such judgment or order (other than any enforcement proceedings consisting
     of the mere obtaining and filing of a judgment lien or obtaining of a
     garnishment or similar order so long as no foreclosure, levy or similar
     process in respect of such lien, or payment over in respect of such
     garnishment or similar order, has commenced and is continuing or has been
     completed) or (ii) there shall be any period of 30 consecutive days during
     which a stay of execution or of enforcement proceedings (other than those
     referred to in the parenthesis in clause (i) above) in respect

                                       55
<PAGE>   60

     of such judgment or order, by reason of a pending appeal, bonding or
     otherwise, shall not be in effect; or

          (g) (i) Any Termination Event with respect to a Plan shall have
     occurred and, 30 days after notice thereof shall have been given to the
     Company by the Administrative Agent, such Termination Event shall still
     exist; or (ii) the Company or any ERISA Affiliate shall have been notified
     by the sponsor of a Multiemployer Plan that it has incurred Withdrawal
     Liability to such Multiemployer Plan; or (iii) the Company or any ERISA
     Affiliate shall have been notified by the sponsor of a Multiemployer Plan
     that such Multiemployer Plan is in reorganization, or is insolvent or is
     being terminated, within the meaning of Title IV of ERISA; or (iv) any
     Person shall engage in a "prohibited transaction" (as defined in Section
     406 of ERISA or Section 4975 of the Code) involving any Plan; and in each
     case in clauses (i) through (iv) above, such event or condition, together
     with all other such events or conditions, if any, would result in an
     aggregate liability of the Company or any ERISA Affiliate that would exceed
     10% of Net Worth; or

          (h) Upon completion of, and pursuant to, a transaction, or a series of
     transactions (which may include prior acquisitions of capital stock of the
     Company in the open market or otherwise), involving a tender offer (i) a
     "person" (within the meaning of Section 13(d) of the Securities Exchange
     Act of 1934) other than the Company or a Subsidiary of the Company or any
     employee benefit plan maintained for employees of the Company and/or any of
     its Subsidiaries or the trustee therefor, shall have acquired direct or
     indirect ownership of and paid for in excess of 50% of the outstanding
     capital stock of the Company entitled to vote in elections for directors of
     the Company and (ii) at any time before the later of (A) six months after
     the completion of such tender offer and (B) the next annual meeting of the
     shareholders of the Company following the completion of such tender offer
     more than half of the directors of the Company consists of individuals who
     (1) were not directors before the completion of such tender offer and (2)
     were not appointed, elected or nominated by the Board of Directors in
     office prior to the completion of such tender offer (other than any such
     appointment, election or nomination required or agreed to in connection
     with, or as a result of, the completion of such tender offer); or

          (i) Any event of default shall occur under any agreement or instrument
     relating to or evidencing any Debt now or hereafter existing of the Company
     or any Principal Subsidiary as the result of any change of control of the
     Company; or

          (j) Any of the Guarantees contained in Article VI shall cease, for any
     reason, to be in full force and effect or any Borrower shall so assert;
     provided that if, within one Business Day after any Borrower receives
     notice from the Administrative Agent or otherwise becomes aware that such
     Guarantee is not in full force and effect, the Company delivers written
     notice to the Administrative Agent that the applicable Borrower intends to
     deliver a valid and effective Guarantee, or to reinstate such Guarantee, as
     soon as possible, then an Event of Default shall not exist pursuant this
     Section 7.1(j) unless the Company shall fail to deliver or reinstate or
     cause to be delivered or reinstated a Guarantee of the applicable Borrower
     having the same economic effect as the Guarantee

                                       56
<PAGE>   61

     set forth in Article VI within four Business Days after the delivery of
     such written notice of intent;

then, and in any such event, the Administrative Agent shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Company, (i)
declare the obligation of each Lender to make Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) declare the Advances and
the Notes, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances and the Notes,
all such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrowers; provided, however, that
if an Event of Default under subsection (e) of this Section 7.1 (except under
clause (i)(A) thereof) shall occur, (A) the obligation of each Lender to make
Advances shall automatically be terminated and (B) the Advances and the Notes,
all interest thereon and all other amounts payable under this Agreement shall
automatically become and be forthwith due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrowers.

                                  ARTICLE VIII

               THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT

          SECTION VIII.1 Authorization and Action. Each Lender hereby appoints
and authorizes the Administrative Agent and the CAF Advance Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Administrative Agent and the CAF Advance Agent by the
terms hereof, together with such powers as are reasonably incidental thereto. As
to any matters not expressly provided for by this Agreement (including
enforcement of this Agreement or collection of the Notes), the Administrative
Agent and the CAF Advance Agent shall not be required to exercise any discretion
or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Majority Lenders, and such instructions shall be binding
upon all Lenders and all holders of Notes; provided, however, that the
Administrative Agent and the CAF Advance Agent shall not be required to take any
action which exposes the Administrative Agent or the CAF Advance Agent to
personal liability or which is contrary to this Agreement or applicable law. The
Administrative Agent and the CAF Advance Agent agree to give to each Lender
prompt notice of each notice given to it by any Borrower pursuant to the terms
of this Agreement.

          SECTION VIII.2 Administrative Agent's and CAF Advance Agent's
Reliance, Etc. None of the Administrative Agent, the CAF Advance Agent or any of
its respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent and the CAF Advance Agent: (i) may treat the payee of any
Note as the holder thereof until the Administrative Agent receives and accepts
an Assignment and

                                       57
<PAGE>   62

Acceptance entered into by the Lender which is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 9.7;
(ii) may consult with legal counsel (including counsel for the Company),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes
no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (iv) shall not have any duty
to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of this Agreement on the part of the Borrowers or
to inspect the property (including the books and records) of the Borrowers; (v)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any other instrument or document furnished pursuant hereto; and (vi) shall incur
no liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telegram,
telecopier, cable or telex) believed by it to be genuine and signed or sent by
the proper party or parties.

          SECTION VIII.3 Chase and Affiliates. With respect to its Commitment,
the Advances made by it and the Note issued to it, Chase shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Administrative Agent or the CAF Advance Agent;
and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated,
include Chase in its individual capacity. Chase and its affiliates may accept
deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with, the Company, any of its Subsidiaries and
any Person who may do business with or own securities of the Company or any of
its Subsidiaries, all as if Chase were not the Administrative Agent or the CAF
Advance Agent and without any duty to account therefor to the other Lenders.

          SECTION VIII.4 Lender Credit Decision. Each Lender acknowledges that
it has, independently and without reliance upon the Administrative Agent, the
CAF Advance Agent or any other Lender and based on the financial statements
referred to in Section 4.1 and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent, the CAF Advance Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.

          SECTION VIII.5 Indemnification. The Lenders agree to indemnify the
Administrative Agent and the CAF Advance Agent (to the extent not reimbursed by
the Borrowers), ratably according to the respective principal amounts of the
Advances then outstanding by each of them (or if no Advances are at the time
outstanding or if any Notes are held by Persons which are not Lenders, ratably
according to the respective amounts of their aggregate Commitments), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against the
Administrative Agent

                                       58
<PAGE>   63

or the CAF Advance Agent in any way relating to or arising out of this Agreement
or any action taken or omitted by the Administrative Agent or the CAF Advance
Agent under this Agreement, provided that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the
Administrative Agent's or the CAF Advance Agent's gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender agrees to reimburse
the Administrative Agent and the CAF Advance Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including reasonable counsel fees)
incurred by the Administrative Agent or the CAF Advance Agent in connection with
the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings, in bankruptcy or
insolvency proceedings, or otherwise) of, or legal advice in respect of rights
or responsibilities under, this Agreement, to the extent that the Administrative
Agent or the CAF Advance Agent is not reimbursed for such expenses by the
Borrowers.

          SECTION VIII.6 Successor Administrative Agent and CAF Advance Agent.
The Administrative Agent and the CAF Advance Agent may resign at any time by
giving written notice thereof to the Lenders and the Company and may be removed
at any time with or without cause by the Majority Lenders. Upon any such
resignation or removal, the Majority Lenders shall have the right to appoint a
successor Administrative Agent or the CAF Advance Agent. If no successor
Administrative Agent or CAF Advance Agent shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent's or the CAF Advance Agent"s giving of notice
of resignation or the Majority Lenders' removal of the retiring Administrative
Agent or CAF Advance Agent, then such retiring Administrative Agent or CAF
Advance Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent or CAF Advance Agent, which shall be a Lender and a commercial bank
organized, or authorized to conduct a banking business, under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Administrative Agent or CAF Advance Agent hereunder by a successor
Administrative Agent or CAF Advance Agent, such successor Administrative Agent
or CAF Advance Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent or
CAF Advance Agent, and the retiring Administrative Agent or CAF Advance Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Administrative Agent's or CAF Advance Agent's resignation or
removal hereunder as Administrative Agent or CAF Advance Agent, the provisions
of this Article VII shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent or CAF Advance Agent
under this Agreement.

          SECTION 8.7. Syndication Agent; Co-Documentation Agents. None of the
Lenders identified on the cover page or signature pages or in the preamble of
this Agreement as a "syndication agent" or "co-documentation agent" shall have
any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such. Without limiting
the foregoing, none of the Lenders so identified as a "syndication agent" or
"co-documentation agent" shall have or be deemed to have any fiduciary
relationship with any

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<PAGE>   64

Lender. Each Lender acknowledges that it has not relied, and will not rely, on
any of the Lenders so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

                                   ARTICLE IX

                                  MISCELLANEOUS

          SECTION IX.1 Amendments, Etc. An amendment or waiver of any provision
of this Agreement or the Notes, or a consent to any departure by any Borrower
therefrom, shall be effective against the Lenders and all holders of the Notes
if, but only if, it shall be in writing and signed or consented to in writing by
the Majority Lenders, and then such a 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, unless in writing and
signed by all the Lenders, be effective to: (a) waive any of the conditions
specified in Article III, (b) except as contemplated by Sections 2.4, 2.5, 2.23
and 2.25, increase or extend the Commitments of the Lenders or subject the
Lenders to any additional obligations, (c) reduce the principal of, or interest
on, any Advance or the Notes or any facility fees hereunder, (d) postpone any
date fixed for any payment of principal of, or interest on, any Advance or the
Notes or any facility fees hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of any Advance or the
Notes, or the number of Lenders, which shall be required for the Lenders or any
of them to take any action under this Agreement, (f) amend this Section 9.1, (g)
amend, waive or consent to any departure of any provision in Article VI or (h)
except as provided below, release any Borrower from its guarantee in Article VI;
provided, further, that no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent and the CAF Advance Agent in addition to
the Lenders required hereinabove to take such action, affect the rights or
duties of the Administrative Agent or the CAF Advance Agent under this Agreement
or any Note; provided, still further, that the guarantee of a Borrower under
Article VI shall be released automatically upon (i) the sale by the Company of
such Borrower, provided that such sale is permitted under this Agreement, or
(ii) such Borrower ceasing to be a Borrower (it being understood that the
Company and EPNGC shall never cease to be a Borrower hereunder).

          SECTION IX.2 Notices, Etc. Except as otherwise provided in Section
2.2(a), 2.5(d) or 2.15(b), all notices and other communications provided for
hereunder shall be in writing (including telecopier and other readable
communication) and mailed by certified mail, return receipt requested,
telecopied or otherwise transmitted or delivered, if to any Borrower, c/o the
Company at El Paso Energy Building, 1001 Louisiana Street, Houston, Texas 77002,
Attention: Executive Vice President and Chief Financial Officer, Telecopier:
(713) 420-4975; if to any Lender, at its address set forth under its name on
Schedule I; if to the Administrative Agent, at 270 Park Avenue, 21st floor, New
York, New York 10017, Attention: Steve Wood, Telecopier: (212) 270-2519,
Telephone: (212) 270-7056; and if to the CAF Advance Agent, at One Chase
Manhattan Plaza, 8th Floor, New York, New York 10081, Attention: Jackie Reid,
Telecopier: (212) 552-5777, Telephone: (212) 552-7683; or, as to each party and
each Borrowing Subsidiary, at such other address as shall be designated by such
party in a written notice to the other parties. All such notices and
communications shall, if so mailed, telecopied or

                                       60
<PAGE>   65

otherwise transmitted, be effective when received, if mailed, or when the
appropriate answerback or other evidence of receipt is given, if telecopied or
otherwise transmitted, respectively. A notice received by the Administrative
Agent, the CAF Advance Agent or a Lender by telephone pursuant to Section
2.2(a), 2.5(d) or 2.15(a) shall be effective if the Administrative Agent or
Lender believes in good faith that it was given by an authorized representative
of the applicable Borrower and acts pursuant thereto, notwithstanding the
absence of written confirmation or any contradictory provision thereof.

          SECTION IX.3 No Waiver; Remedies. No failure on the part of any
Lender, the Administrative Agent or the CAF Advance Agent to exercise, and no
delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
or under any Note preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

          SECTION IX.4 Costs and Expenses; Indemnity. (a) Each Borrower agrees
to pay on demand (to the extent not reimbursed by any other Borrower) (i) all
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent in connection with the preparation, execution and delivery of this
Agreement, the Notes and the other documents to be delivered hereunder and the
fulfillment or attempted fulfillment of conditions precedent hereunder, (ii) all
reasonable costs and expenses incurred by the Administrative Agent and its
Affiliates in initially syndicating all or any portion of the Commitments
hereunder, including the related reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent or its Affiliates, travel expenses,
duplication and printing costs and courier and postage fees, and excluding any
syndication fees paid to other parties joining the syndicate and (iii) all
out-of-pocket costs and expenses, if any, incurred by the Administrative Agent,
the CAF Advance Agent and the Lenders in connection with the enforcement
(whether through negotiations, legal proceedings in bankruptcy or insolvency
proceedings, or otherwise) of this Agreement, the Notes and the other documents
to be delivered hereunder and thereunder, including the reasonable fees and
out-of-pocket expenses of counsel.

          (b) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance or CAF Advance is made by any Borrower to or for the account of a
Lender on any day other than the last day of the Interest Period for such
Advance, as a result of a prepayment pursuant to Section 2.15 or a Conversion
pursuant to Section 2.13(f) or Section 2.14 or due to acceleration of the
maturity of the Advances and the Notes pursuant to Section 7.1 or due to any
other reason attributable to such Borrower, or if any Borrower shall fail to
make a borrowing of Eurodollar Rate Advances or CAF Advances after such Borrower
has given a notice requesting the same in accordance with the provisions of this
Agreement, such Borrower shall, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses which it may reasonably incur as a result
of such payment, Conversion or failure to borrow, including any loss (excluding
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender to
fund or maintain such Advance.

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<PAGE>   66

          (c) Each Borrower agrees to indemnify and hold harmless the
Administrative Agent, the CAF Advance Agent and each Lender (to the extent not
reimbursed by any other Borrower) from and against any and all claims, damages,
liabilities and expenses (including fees and disbursements of counsel) which may
be incurred by or asserted against the Administrative Agent, the CAF Advance
Agent or such Lender in connection with or arising out of any investigation,
litigation, or proceeding (whether or not the Administrative Agent, the CAF
Advance Agent or such Lender is party thereto) related to any acquisition or
proposed acquisition by the Company, or by any Subsidiary of the Company, of all
or any portion of the stock or substantially all the assets of any Person or any
use or proposed use of the Advances by any Borrower (excluding any claims,
damages, liabilities or expenses incurred by reason of the gross negligence or
willful misconduct of the party to be indemnified or its employees or agents, or
by reason of any use or disclosure of information relating to any such
acquisition or use or proposed use of the proceeds by the party to be
indemnified or its employees or agents).

          SECTION IX.5 Right of Set-Off. Upon the declaration of the Advances
and the Notes as due and payable pursuant to the provisions of Section 7.1, each
Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the
account of the applicable Borrower against any and all of the obligations of
such Borrower now or hereafter existing under this Agreement and the Notes of
such Borrower held by such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement or such Notes and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Company
after any such set-off and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section 9.5 are in addition to
other rights and remedies (including other rights of set-off) which such Lender
may have.

          SECTION IX.6 Binding Effect. This Agreement shall become effective in
accordance with the provisions of Section 3.1, and thereafter shall be binding
upon and inure to the benefit of the Borrowers, the Administrative Agent, the
CAF Advance Agent and each Lender and their respective successors and assigns,
except that no Borrower shall have the right to assign its rights or obligations
hereunder or any interest herein in a transaction not permitted by Section
5.2(e) without the prior written consent of all of the Lenders.

          SECTION IX.7 Assignments and Participations. (a) Each Lender may
assign to one or more banks or other financial institutions all or a portion of
its rights and obligations under this Agreement (including all or a portion of
its Commitment, the Advances owing to it and the Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a
varying, percentage of all such Lender's rights and obligations under this
Agreement, (ii) the amount of the Commitment of the assigning Lender being
assigned to an assignee pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $15,000,000 (or, if less, the entire Commitment of the
assigning Lender) and shall be an integral multiple of $1,000,000, (iii) each
such assignment shall be to an Eligible Assignee, and (iv) the parties to each
such assignment

                                       62
<PAGE>   67

shall execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Notes
subject to such assignment and a processing and recordation fee of $2,500, and
shall send to the Company an executed counterpart of such Assignment and
Acceptance. Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (B) the
assigning Lender thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender's rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).

          (b) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of each
Borrower or the performance or observance by each Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.1 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, the CAF Advance Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is (subject to approval in writing by the Company and, if applicable,
the Administrative Agent to the extent required by the definition of "Eligible
Assignee") an Eligible Assignee; (vi) such assignee appoints and authorizes the
Administrative Agent and the CAF Advance Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent and the CAF Advance Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; and (vii) such assignee
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.

          (c) The Administrative Agent shall maintain at its address referred to
in Section 9.2 a copy of each Assignment and Acceptance delivered to and
accepted by it and a register (which register may be in electronic form) for the
recordation of the names and addresses of the Lenders and the Commitment of, and
principal amount of the Advances owing to, each

                                       63
<PAGE>   68

Lender from time to time (the "Register"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and each
Borrower, the Administrative Agent, the CAF Advance Agent and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement. The Register shall be available for
inspection by any Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice. Upon the acceptance of any Assignment and
Acceptance for recordation in the Register, Schedule I hereto shall be deemed to
be amended to reflect the revised Commitments of the Lenders parties to such
Assignment and Acceptance as well as administrative information with respect to
any new Lender as such information is recorded in the Register.

          (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and as assignee representing that it is an Eligible Assignee,
together with any Notes subject to such assignment, the Administrative Agent
shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit G hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company. Within five Business Days after
its receipt of such notice and its receipt of an executed counterpart of such
Assignment and Acceptance, the Borrowers, at their own expense, shall execute
and deliver to the Administrative Agent in exchange for the surrendered Notes,
if any, new Notes to the order of such Eligible Assignee, if requested, in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Acceptance and, if the assigning Lender has retained a Commitment hereunder, new
Notes, if requested, to the order of the assigning Lender in an amount equal to
the Commitment retained by it hereunder. Such new Notes, if any, shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Notes, if any, shall be dated (A) in the case of Notes made by the
Company, EPNGC and Tennessee the Closing Date and (B) in the case of Notes made
by any other Borrower, the date such other Borrower executes and delivers its
Joinder Agreement, and shall otherwise be in substantially the form of Exhibit
A.

          (e) Each Lender may sell participations to one or more banks or other
entities in or to all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment, and the Advances owing
to it and the Notes held by it); provided, however, that (i) such Lender's
obligations under this Agreement (including its Commitment to the Borrowers
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Notes for all purposes of
this Agreement, (iv) the Borrowers, the Administrative Agent, the CAF Advance
Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement, (v) such Lender shall continue to be able to agree to any
modification or amendment of this Agreement or any waiver hereunder without the
consent, approval or vote of any such participant or group of participants,
other than modifications, amendments and waivers which (A) postpone any date
fixed for any payment of, or reduce any payment of, principal of or interest on
such Lender's Advances or Notes or any facility fees payable under this
Agreement, or (B) increase the amount of such Lender's Commitment in a manner
which would have the effect of increasing the amount of a participant's
participation, or (C) reduce the interest rate payable

                                       64
<PAGE>   69

under this Agreement and such Lender's Notes, or (D) consent to the assignment
or the transfer by any Borrower of any of its rights and obligations under the
Agreement, and (vi) except as contemplated by the immediately preceding clause
(v), no participant shall be deemed to be or to have any of the rights or
obligations of a "Lender" hereunder.

          (f) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.7, disclose
to the assignee or participant or proposed assignee or participant, any
information relating to the Borrowers furnished to such Lender by or on behalf
of the Borrowers; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree in writing for the
benefit of the Borrowers to preserve the confidentiality of any confidential
information relating to the Borrowers received by it from such Lender in a
manner consistent with Section 9.8.

          (g) Anything in this Agreement to the contrary notwithstanding, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including the Advances owing to it) and the Notes
issued to it hereunder in favor of any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System (or any
successor regulation) and the applicable operating circular of such Federal
Reserve Bank.

          SECTION IX.8 Confidentiality. Each Lender, the Administrative Agent
and the CAF Advance Agent (each, a "Party") agrees that it will use its best
efforts not to disclose, without the prior consent of the Company (other than to
its, or its Affiliate's, employees, auditors, accountants, counsel or other
representatives, whether existing at the date of this Agreement or any
subsequent time), any information with respect to the Borrowers which is
furnished pursuant to this Agreement, provided that any Party may disclose any
such information (i) as has become generally available to the public, (ii) as
may be required or appropriate in any report, statement or testimony submitted
to any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such party or to the Board of Governors of the Federal Reserve
System or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (iii) as may be
required or appropriate in response to any summons or subpoena or in connection
with any litigation or regulatory proceeding, (iv) in order to comply with any
law, order, regulation or ruling applicable to such party, or (v) to any
prospective assignee or participant in connection with any contemplated
assignment of any rights or obligations hereunder, or any sale of any
participation therein, by such Party pursuant to Section 9.7, if such
prospective assignee or participant, as the case may be, executes an agreement
with the Company containing provisions substantially similar to those contained
in this Section 9.8; provided, however, that the Company acknowledges that the
Administrative Agent has disclosed and may continue to disclose such information
as the Administrative Agent in its sole discretion determines is appropriate to
the Lenders from time to time.

          SECTION IX.9 Consent to Jurisdiction. (a) Each Borrower hereby
irrevocably submits to the jurisdiction of any New York State or Federal court
sitting in New York City and any appellate court from any thereof in any action
or proceeding by the Administrative Agent, the

                                       65
<PAGE>   70

CAF Advance Agent, any Lender or the holder of any Note in respect of, but only
in respect of, any claims or causes of action arising out of or relating to this
Agreement or the Notes (such claims and causes of action, collectively, being
"Permitted Claims"), and each Borrower hereby irrevocably agrees that all
Permitted Claims may be heard and determined in such New York State court or in
such Federal court. Each Borrower hereby irrevocably waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any aforementioned court in respect
of Permitted Claims. Each Borrower hereby irrevocably appoints CT Corporation
System (the "Process Agent"), with an office on the date hereof at 1633
Broadway, New York, New York 10019, as its agent to receive on behalf of such
Borrower and its property service of copies of the summons and complaint and any
other process which may be served by the Administrative Agent, any Lender or the
holder of any Note in any such action or proceeding in any aforementioned court
in respect of Permitted Claims. Such service may be made by delivering a copy of
such process to the Company by courier and by certified mail (return receipt
requested), fees and postage prepaid, both (i) in care of the Process Agent at
the Process Agent's above address and (ii) at the Company's address specified
pursuant to Section 9.2, and each Borrower hereby irrevocably authorizes and
directs the Process Agent to accept such service on its behalf. Each Borrower
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.

          (b) Nothing in this Section 9.9 (i) shall affect the right of any
Lender, the holder of any Note or the Administrative Agent or the CAF Advance
Agent to serve legal process in any other manner permitted by law or affect any
right otherwise existing of any Lender, the holder of any Note or the
Administrative Agent or the CAF Advance Agent to bring any action or proceeding
against any Borrower or its property in the courts of other jurisdictions or
(ii) shall be deemed to be a general consent to jurisdiction in any particular
court or a general waiver of any defense or a consent to jurisdiction of the
courts expressly referred to in subsection (a) above in any action or proceeding
in respect of any claim or cause of action other than Permitted Claims.

          SECTION IX.10 GOVERNING LAW. THIS AGREEMENT AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

          SECTION IX.11 Rate of Interest. It is the intention of the parties
hereto that each Lender shall each conform strictly to usury laws applicable to
it. Accordingly, if the transactions contemplated hereby would be usurious as to
any Lender under laws applicable to it, then, in that event, notwithstanding
anything to the contrary in this Agreement or in the Notes to the order of such
Lender, it is agreed as follows: (a) the aggregate of all consideration which
constitutes interest under law applicable to such Lender that is contracted for,
taken, reserved, charged or received by such Lender hereunder, or under such
Notes or otherwise, shall under no circumstances exceed the maximum amount
allowed by such applicable law, and any excess shall be credited by such Lender
on the principal amount of the sums owed to such Lender (or, if all amounts
owing to such Lender shall have been paid in full, refunded by such Lender to
the applicable Borrower); or (b) in the event that a prepayment of any Advances
owed to any Lender is required, then such consideration that constitutes
interest under law applicable to such Lender

                                       66
<PAGE>   71

may never include more than the maximum amount allowed by such applicable law,
and excess interest, if any, provided for shall be cancelled automatically by
such Lender as of the date of such prepayment and, if theretofore paid, shall be
credited by such Lender on the principal amount of such prepayment obligation
(or, if the principal amount of such prepayment obligation shall have been paid
in full, refunded by such Lender to the applicable Borrower). To the extent that
Article 5069-1.0001 of the Texas Revised Civil Statutes is relevant to any
Lender for the purpose of determining the maximum amount of interest allowed by
applicable law, such Lender hereby elects to determine the applicable rate
ceiling under such Article by the indicated (weekly) rate ceiling from time to
time in effect, subject to such Lender's right subsequently to change such
method in accordance with applicable law. In no event, however, shall Chapter
346 of the Texas Finance Code apply to this Agreement or the Notes or the
transactions contemplated hereby.

          SECTION IX.12 Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery to the Administrative Agent of a counterpart executed by a
Lender shall constitute delivery of such counterpart to all of the Lenders. This
Agreement may be delivered by facsimile transmission of the relevant signature
pages hereof.

                                       67

<PAGE>   72

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

                               EL PASO ENERGY CORPORATION

                               By: /s/ C. Dana Rice
                                   --------------------------------------------
                               Title:  Senior Vice President and Treasurer

                               EL PASO NATURAL GAS COMPANY

                               By: /s/ C. Dana Rice
                                   --------------------------------------------
                               Title:  Senior Vice President and Treasurer

                               TENNESSEE GAS PIPELINE COMPANY

                               By: /s/ C. Dana Rice
                                   --------------------------------------------
                               Title:  Senior Vice President and Treasurer

                               THE CHASE MANHATTAN BANK, as
                               Administrative Agent, CAF Advance
                               Agent and a Lender

                               By: /s/ Steven Wood
                                   --------------------------------------------
                               Title:  Vice President

                               CITIBANK, N.A., as Co-Documentation
                               Agent and a Lender

                               By: /s/ J. Christopher Lyons
                                   --------------------------------------------
                               Title:  Attorney-in-Fact

<PAGE>   73

                               ABN AMRO BANK, N.V., as Co-Documentation
                               Agent and a Lender

                               By: /s/ Michael Nepveux
                                   --------------------------------------------
                               Title:  Group Vice President

                               By: /s/ Dana L. Montgomery
                                   --------------------------------------------
                               Title:  Assistant Vice President

                               BANK OF AMERICA, N.A., as Syndication
                               Agent and a Lender

                               By: /s/ Patrick M. Delaney
                                   --------------------------------------------
                               Title:  Managing Director

                               BANCA DI ROMA- CHICAGO BRANCH, as a Lender

                               By: /s/ Aurora Pensa
                                   --------------------------------------------
                               Title:  Vice President

                               By: /s/ Enrico Verdoscia
                                   --------------------------------------------
                               Title:  Senior Vice President

                               THE BANK OF TOKYO-MITSUBISHI,
                               LTD HOUSTON AGENCY, as a Lender

                               By: /s/ Michael G. Meiss
                                   --------------------------------------------
                               Title:  Vice President

<PAGE>   74

                               BNP PARIBAS, as a Lender

                               By: /s/ Bart Schouest
                                   --------------------------------------------
                               Title:  Managing Director

                               By: /s/ John H. Roberts
                                   --------------------------------------------
                               Title:  Vice President

                               BAYERISCHE LANDESBANK GIROZENTRALE,
                               CAYMAN ISLANDS BRANCH, as a Lender

                               By: /s/ Hereward Drummond
                                   --------------------------------------------
                               Title:  Senior Vice President

                               By: /s/ James Fox
                                   --------------------------------------------
                               Title:  Vice President

                               COMMERZBANK AG, NEW YORK AND
                               GRAND CAYMAN BRANCHES, as a Lender

                               By: /s/ Harry P. Yergey
                                   --------------------------------------------
                               Title:  Senior Vice President & Manager

                               By: /s/ W. David Suttles
                                   --------------------------------------------
                               Title:  Vice President

                               CREDIT SUISSE FIRST BOSTON, as a Lender

                               By: /s/ David L. Sawyer
                                   --------------------------------------------
                               Title:  Vice President

                               By: /s/ Lalita Advani
                                   --------------------------------------------
                               Title:  Assistant Vice President

<PAGE>   75

                               DEUTSCHE BANK AG NEW YORK AND/OR
                               CAYMAN ISLANDS BRANCHES, as a Lender

                               By: /s/ Joel Makowsky
                                   --------------------------------------------
                               Title:  Vice President

                               By: /s/ Michael E. Keating
                                   --------------------------------------------
                               Title:  Managing Director

                               BAYERISCHE HYPO- UND VEREINSBANK AG,
                               NEW YORK BRANCH, as a Lender

                               By: /s/ Steven Atwell
                                   --------------------------------------------
                               Title:  Director

                               By: /s/ Shannon Batchman
                                   --------------------------------------------
                               Title:  Director

                               THE INDUSTRIAL BANK OF JAPAN TRUST
                               COMPANY, as a Lender

                               By: /s/ Michael N. Oakes
                                   --------------------------------------------
                               Title:  Senior Vice President
                               The Industrial Bank of Japan, Limited, Houston
                               Office
                               (Authorized Representative)

                               KBC BANK N.V., as a Lender

                               By: /s/ Jean-Pierre Diels
                                   --------------------------------------------
                               Title:  First Vice President

                               By: /s/ Patrick A. Janssens
                                   --------------------------------------------
                               Title:  Vice President

<PAGE>   76

                               NATIONAL WESTMINISTER BANK PLC, NEW
                               YORK BRANCH, as a Lender

                               By: /s/ Kevin Howard
                                   ------------------------------------------
                               Title:  Executive Vice President

                               NATIONAL WESTMINISTER BANK PLC,
                               NASSAU BRANCH, as a Lender

                               By: /s/ Kevin Howard
                                   ------------------------------------------
                               Title:  Executive Vice President

                               SOCIETE GENERALE, as a Lender

                               By: /s/ Paul E. Cornell
                                   ------------------------------------------
                               Title:  Managing Director

                               THE FUJI BANK, LIMITED, as a Lender

                               By: /s/ Toru Maeda
                                   ------------------------------------------
                               Title:  Executive Vice President
                               and General Manager

                               AUSTRALIA & NEW ZEALAND BANKING
                               GROUP LIMITED, as a Lender

                               By: /s/ R. Scott McInnis
                                   ------------------------------------------
                               Title:  Head of Structured Finance
                               & Relationship Management-Americas

<PAGE>   77

                               THE BANK OF NEW YORK, as a Lender

                               By: /s/ Peter Keller
                                   ------------------------------------------
                               Title:  Vice President

                               THE BANK OF NOVA SCOTIA, as a Lender

                               By: /s/ F.C.H. Ashby
                                   ------------------------------------------
                               Title:  Senior Manager Loan Operations

                               BANK ONE, NA (CHICAGO), as a Lender

                               By: /s/ Helen Carr
                                   ------------------------------------------
                               Title:  First Vice President

                               BARCLAYS BANK, as a Lender

                               By: /s/ Nicholas A. Bell
                                   ------------------------------------------
                               Title:  Director, Loan Transaction Management

                               CREDIT AGRICOLE INDOSUEZ, as a Lender

                               By: /s/ Patrick Cocquerer
                                   ------------------------------------------
                               Title:  FVP, Managing Director

                               By: /s/ Michael D. Willis
                                   ------------------------------------------
                               Title:  VP, Credit Analysis

<PAGE>   78

                               CREDIT LYONNAIS, as a Lender

                               By: /s/ Pascal Poupelle
                                   -------------------------------------
                               Title:  President and Chief Operating
                               Officer

                               THE DAI-ICHI KANGYO BANK, LTD.,
                               as a Lender

                               By: /s/ Katsuya Noto
                                   -------------------------------------
                               Title:  Vice President

                               DLJ CAPITAL FUNDING, INC., as a Lender

                               By: /s/ Richard N. Beaudoin
                                   -------------------------------------
                               Title:  Senior Vice President

                               FIRST UNION NATIONAL BANK, as a Lender

                               By: /s/ Robert R. Wetteroff
                                   -------------------------------------
                               Title:  Senior Vice President

                               FLEET NATIONAL BANK, as a Lender

                               By:/s/ Christopher Holmgren
                                   -------------------------------------
                               Title:  Director

                               MORGAN GUARANTY TRUST COMPANY OF
                               NEW YORK, as a Lender

                               By: /s/ Dennis R. Wilczek
                                   -------------------------------------
                               Title:  Associate

<PAGE>   79

                               MELLON BANK, N.A., as a Lender

                               By: /s/ Roger E. Howard
                                   -------------------------------------
                               Title:  Vice President

                               NATIONAL AUSTRALIA BANK LTD.,
                               as a Lender

                               By: /s/ Paul R. Morrison
                                   -------------------------------------
                               Title:  Vice President

                               THE NORINCHUKIN BANK, NEW YORK
                               BRANCH,  as a Lender

                               By: /s/ Toshiyuki Futaoka
                                   -------------------------------------
                               Title:  Joint General Manager

                               SUMITOMO BANK LTD., as a Lender

                               By: /s/ C. Michael Garrido
                                   -------------------------------------
                               Title:  Senior Vice President

                               SUNTRUST BANKS, INC., as a Lender

                               By: /s/ Joseph M. McCreary
                                   -------------------------------------
                               Title:  Assistant Vice President

                               TORONTO DOMINION (TEXAS), INC.,
                               as a Lender

                               By: /s/ Carolyn R. Faeth
                                   -------------------------------------
                               Title:  Vice President

<PAGE>   80

                               WELLS FARGO BANK, as a Lender

                               By: /s/ John Lane
                                   -------------------------------------
                               Title:  Vice-President

                               WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                               as a Lender

                               By: /s/ Duncan M. Robertson
                                   -------------------------------------
                               Title:  Director

                               By: /s/ Thomas Lee
                                   -------------------------------------
                               Title:  Associate

                               DRESDNER BANK AG, NEW YORK AND
                               GRAND CAYMAN BRANCHES, as a Lender

                               By: /s/ Kirk Edelman
                                   -------------------------------------
                               Title:  First Vice President

                               By: /s/ Andrew Schroeder
                                   -------------------------------------
                               Title:  Vice President

                               BANCO BILBAO VIZCAYA ARGENTARIA,
                               as a Lender

                               By: /s/ Manuel Sanchez
                                   -------------------------------------
                               Title:  Senior Vice President

                               By: /s/ Alberto Conde
                                   -------------------------------------
                               Title:  Vice President

<PAGE>   81

                               ING (U.S.) CAPITAL LLC, as a Lender

                               By: /s/ Charles M. O'Neil
                                   -------------------------------------
                               Title:  Managing Director

                               By: /s/ Clara B. Alvarez
                                   -------------------------------------
                               Title:  Vice President

<PAGE>   82

                                                                      SCHEDULE I

                          COMMITMENTS, ADDRESSES, ETC.

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
The Chase Manhattan Bank                                                        $46,666,666.67
270 Park Avenue
New York, NY 10017
Attention:   Steve Wood
Telephone:   212-270-7056
Telecopier:  212-270-2519

Citibank, N.A.                                                                  $46,666,666.67
1200 Smith Street, Suite 2000
Houston, TX 77002
Attention:   Carol Rooney
Telephone:   713-654-3590
Telecopier:  713-654-2899

ABN AMRO Bank, N.V.                                                             $46,666,666.67
208 South LaSalle, Suite 1500
Chicago, IL 60604-1003
Attention:   Credit Administration
Telephone:   312-992-5110
Telecopier:  312-992-5111

Bank of America, N.A.                                                           $46,666,666.67
333 Clay Street, Suite 4550
Houston, TX 77002
Attention:   Patrick Delaney
Telephone:   713-651-4929
Telecopier:  713-651-4808

Banca di Roma- Chicago Branch                                                   $13,333,333.33
225 West Washington, Suite 1200
Chicago, IL 60606
Attention:   Aurora Pensa
Telephone:   312-704-2630
Telecopier:  312-726-3058
</TABLE>

<PAGE>   83

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
The Bank of Tokyo-Mitsubishi, Ltd Houston Agency                                $20,000,000.00
1100 Louisiana Street, Suite 2800
Houston, TX 77002-5216
Attention:   John M. McIntyre
Telephone:   713-655-3845
Telecopier:  713-655-3855

BNP Paribas                                                                     $30,000,000.00
1200 Smith Street, Suite 3100
Houston, TX 77002
Attention:   John Roberts
Telephone:   713-659-4811
Telecopier:  713-659-6915

Bayerische Landesbank Girozentrale, Cayman Islands Branch                       $13,333,333.33
560 Lexington Avenue
New York, NY 10022
Attention:   Stephen Christenson
Telephone:   212-230-3105
Telecopier:  212-310-9868

Commerzbank AG, New York and Grand Cayman Branches                              $20,000,000.00
1230 Peachtree Street, N.E., Suite 3500
Atlanta, GA 30309
Attention:   David Suttles/Lee Ward
Telephone:   404-888-6524/6526
Telecopier:  404-888-6539

Credit Suisse First Boston                                                      $30,000,000.00
11 Madison Avenue
New York, NY 10010
Attention:   James Moran
Telephone:   212-325-9176
Telecopier:  212-325-8615

Deutsche Bank AG New York and/or Cayman Islands Branches                        $30,000,000.00
31 West 52nd Street
New York, NY 10019
Attention:   Joel Makowsky
Telephone:   212-469-7896
Telecopier:  212-469-5711
</TABLE>
<PAGE>   84
<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
Bayerische Hypo- und Vereinsbank AG, New York Branch                            $30,000,000.00
150 East 42nd Street
New York, NY 10017
Attention:  Yoram Danker/Steve Atwell
Telephone:  212-672-5446/5458
Telecopier: 212-672-5530

The Industrial Bank of Japan Trust Company                                      $20,000,000.00
Three Allen Center, Suite 4850
Houston, TX 77002
Attention:  Mr. Lynn Williford
Telephone:  713-651-9444 ext.104
Telecopier: 713-651-9209

KBC Bank N.V.                                                                   $30,000,000.00
125 West 55th Street
New York, NY 10019
Attention:  Christine Park
Telephone:  212-541-0731
Telecopier: 212-541-0784

National Westminister Bank Plc                                                  $30,000,000.00
600 Travis Street, Suite 6070
Houston, TX 77002
Attention:  Patty Dundee/Matt Main
Telephone:  713-221-2423/2441
Telecopier: 713-221-2430

Societe Generale                                                                $30,000,000.00
1111 Bagby Street, Suite 2020
Houston, TX 77002
Attention:  Paul Cornell
Telephone:  713-759-6301
Telecopier: 713-650-0824

The Fuji Bank, Limited                                                          $30,000,000.00
1221 McKinney Street, Suite 4100
One Houston Center
Houston, TX 77010
Attention:  Mark Polasek
Telephone:  713-759-1800
Telecopier: 713-759-0717
</TABLE>

<PAGE>   85

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
Australia & New Zealand Banking Group Limited                                   $13,333,333.33
1177 Avenue of the Americas
New York, NY 10036
Attention:  Anna Arxer/David Giacalone
Telephone:  212-801-9795/9814
Telecopier: 212-801-9131/4814

The Bank of New York                                                            $30,000,000.00
One Wall Street, 19th Floor
New York, NY 10286
Attention:  Peter Keller
Telephone:  212-635-7861
Telecopier: 212-635-7923

Bank of Nova Scotia                                                             $30,000,000.00
1100 Louisiana, Suite 3000
Houston, TX 77002
Attention:  Todd Mogil
Telephone:  713-759-3445
Telecopier: 713-752-2425

Bank One, NA(Chicago)                                                           $30,000,000.00
910 Travis, 6th Floor
Houston, TX 77002
Attention:  Susan Stiernberg/Karen Patterson/
            Helen Carr
Telephone:  713-751-3751/3863/3731
Telecopier: 713-751-3760/3982/3760

Barclays Bank                                                                   $20,000,000.00
222 Broadway, 12th Floor
New York, NY 10038
Attention:  Richard Williams/John Sullivan/
            Nicholas Bell/Virginia Corpus
Telephone:  212-412-7570/7605/4029/7512
Telecopier: 212-412-7585/2441/7585

Credit Agricole Indosuez                                                        $13,333,333.33
600 Travis, Suite 2340
Houston, TX 77002
Attention:  Brian Knezeak/Doug Whiddon
Telephone:  713-223-7001/7003
Telecopier: 713-223-7029
</TABLE>

<PAGE>   86

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
Credit Lyonnais                                                                 $30,000,000.00
1000 Louisiana Street, Suite 5360
Houston, TX 77002
Attention:   Rob LaRocque/Richard Kaufman/
             Mark Isensee/Tati Sulistio
Telephone:   713-753-8733/8721/8716/8710
Telecopier:  713-751-0307

The Dai-Ichi Kangyo Bank, Ltd.                                                  $13,333,333.33
One World Trade Center, Suite 4811
New York, NY 10048
Attention:   Bertram Tang/Katsuya Noto
Telephone:   212-432-8839/6627
Telecopier:  212-912-1879

DLJ Funding, Inc.                                                               $30,000,000.00
277 Park Avenue, 10th Floor
New York, NY 10172
Attention:   Diane Albanese/Greg Biddle
Telephone:   212-892-2903/6142
Telecopier:  212-892-6031

First Union National Bank                                                       $30,000,000.00
1001 Fannin Street, Suite 2255
Houston, TX 77002
Attention:   Philip Trinder
Telephone:   713-346-2718
Telecopier:  713-650-1071

Fleet National Bank                                                             $20,000,000.00
100 Federal Street, 01-08-02
Boston, MA 02110
Attention:   Jill Calabrese
Telephone:   617-434-9579
Telecopier:  617-434-3652

ING (U.S.) Capital LLC                                                          $13,333,333.33
55 East 52nd Street
New York, NY 10055
Attention:   Steve Fischer/Clara Beatriz
             Alvarez
Telephone:   212-409-0455/5849
Telecopier:  212-486-4636 or 212-409-1091

Morgan Guranty Trust Company of New York                                        $20,000,000.00
1221 McKinney Street, Suite 3150
Houston, TX 77002
Attention:   Russell L. Sherrill
Telephone:   713-276-4625
Telecopier:  713-276-4604
</TABLE>
<PAGE>   87

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                         <C>
Mellon Bank, N.A.                                                               $30,000,000.00
One Mellon Bank Center, Room 4530
Pittsburgh, PA 15258
Attention:   Roger Howard
Telephone:   412-234-5606
Telecopier:  412-236-1840

National Australia Bank Ltd.                                                    $13,333,333.33
200 Park Avenue, 34th Floor
New York, NY
Attention:   Matthew Woolf/Paul Morrison/
             Nick Woutas/Frank Campiglia
Telephone:   212-916-9574/9519/9665/9595
Telecopier:  212-986-6958/212-983-1969

The Norinchukin Bank, New York Branch                                           $20,000,000.00
245 Park Avenue, 29th Floor
New York, NY 10167
Attention:   Keisuke Ishii
Telephone:   212-808-4195
Telecopier:  212-697-5754

Sumitomo Bank Ltd.                                                              $20,000,000.00
277 Park Avenue, 6th Floor
New York, NY 10172
Attention:   Bruce Meredith
Telephone:   212-224-4194
Telecopier:  212-224-4384

SunTrust Banks, Inc.                                                            $20,000,000.00
303 Peachtree Street, N.E., 3rd Floor
Atlanta, GA 30308
Attention:   John Fields, Jr./Joe McCreary
Telephone:   404-724-3667/404-532-0274
Telecopier:  404-827-6270

Toronto Dominion (Texas), Inc.                                                  $30,000,000.00
909 Fannin Street, Suite 1700
Houston, TX 77010
Attention:   Carolyn Faeth
Telephone:   713-427-8520
Telecopier:  713-951-9921
</TABLE>
<PAGE>   88

<TABLE>
<CAPTION>
Name and Address of Lender                                                  Amount of Commitment
--------------------------                                                  --------------------

<S>                                                                           <C>
Wells Fargo Bank                                                                $13,333,333.33
1000 Louisiana Street, 3rd Floor
MAC 5002-031
Houston, TX 77002
Attention:  John Lane
Telephone:  713-319-1370
Telecopier: 713-739-1087

Westdeutsche Landesbank Girozentrale                                            $20,000,000.00
1990 Post Oak Blvd., Suite 1100
Houston, TX 77056
Attention:  Richard Newman
Telephone:  713-963-5203
Telecopier: 713-963-5308

Dresdner Bank AG, New York and Grand Cayman Branches                            $13,333,333.33
75 Wall Street
New York, NY 10005
Attention:  Mike Mangan
Telephone:  212-429-2112
Telecopier: 212-429-2081

Banco Bilbao Vizcayz Argentaria                                                 $13,333,333.33
1345 Avenue of the Americas, 45th Floor
New York, NY 10105
Attention:  Manuel Sanchez
Telephone:  212-728-1511
Telecopier: 212-333-2904
</TABLE>

<PAGE>   89

                                                                             A-1

                                                                       EXHIBIT A

                                     FORM OF
                                      NOTE

$___________                                                  New York, New York
                                                                  August 4, 2000

          FOR VALUE RECEIVED, the undersigned, ___________________, a ________
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of (the "Lender") at the office of The Chase Manhattan Bank, located at
270 Park Avenue, New York, New York 10017, in lawful money of the United States
of America and in same day funds, on the Termination Date (or if the Lender is
an Objecting Lender, the Commitment Expiration Date applicable to the Lender)
the principal amount of (a) ____ DOLLARS ($__ ), or, if less, (b) the aggregate
unpaid principal amount of all Revolving Credit Advances made by the Lender to
the Borrower pursuant to subsection 2.1 of the Credit Agreement, as hereinafter
defined. The Borrower further agrees to pay interest in like money at such
office on the unpaid principal amount hereof from time to time outstanding at
the rates and on the dates specified in the Credit Agreement.

          The holder of this Note is authorized to, and prior to any transfer
hereof shall, endorse on the schedules attached hereto and made a part hereof or
on a continuation thereof which shall be attached hereto and made a part hereof
the date, Type and amount of each Revolving Credit Advance made pursuant to
subsection 2.1 of the Credit Agreement and the date and amount of each payment
or prepayment of principal thereof, each continuation thereof, each conversion
of all or a portion thereof to another Type and, in the case of Eurodollar Rate
Advances, the length of each Interest Period with respect thereto. Each such
endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement shall not affect
the obligations of the Borrower in respect of such Revolving Credit Advance.

          This Note (a) is one of the Notes referred to in the $1,000,000,000
3-Year Revolving Credit and Competitive Advance Facility Agreement, dated as of
August 4, 2000 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among El Paso Energy Corporation, El Paso Natural
Gas Company, Tennessee Gas Pipeline Company, the Lender, the other banks and
financial institutions from time to time parties thereto, The Chase Manhattan
Bank, as Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN
Amro, N.V., as Co-Documentation Agents, and Bank of America, N.A., as
Syndication Agent (b) is subject to the provisions of the Credit Agreement and
(c) is subject to optional and mandatory prepayment in whole or in part as
provided in the Credit Agreement.

<PAGE>   90
                                                                             A-2

          Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.

          All parties now and hereafter liable with respect to this Note,
whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind except those
expressly required under the Credit Agreement.

          Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                                   [BORROWER]

                                   By:
                                       ----------------------------------------
                                       Title:

<PAGE>   91
                                                                               1

                                                              Schedule A to Note

           ADVANCES, CONVERSIONS AND REPAYMENTS OF BASE RATE ADVANCES

<TABLE>
<CAPTION>
                                                                              Amount of Base Rate
                                       Amount        Amount of Principal of  Advances Converted to    Unpaid Principal
            Amount of Base Rate     Converted to       Base Rate Advances       Eurodollar Rate     Balance of Base Rate  Notation
   Date          Advances        Base Rate Advances          Repaid                Advances               Advances        Made By
---------- --------------------  ------------------  ----------------------  ---------------------  --------------------  --------
<S>        <C>                   <C>                 <C>                     <C>                    <C>                   <C>

</TABLE>

<PAGE>   92

                                                                               1

                                                              Schedule B to Note

<TABLE>
<CAPTION>
                          ADVANCES, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR RATE ADVANCES

                                                                                     Amount of Eurodollar Unpaid Principal
          Amount of     Amount Converted   Interest Period and   Amount of Principal     Rate Advances       Balance of
      Eurodollar Rate  to Eurodollar Rate  Eurodollar Rate with  of Eurodollar Rate    Converted to Base   Eurodollar Rate  Notation
Date      Advances          Advances         Respect Thereto      Advances Repaid        Rate Advances         Advances     Made By
----- ---------------  ------------------  -------------------- -------------------- -------------------- ----------------  --------
<S>   <C>              <C>                 <C>                  <C>                   <C>                 <C>                <C>

</TABLE>

<PAGE>   93

                                                                             B-1

                                                                       EXHIBIT B

                                     FORM OF
                               NOTICE OF BORROWING

The Chase Manhattan Bank, as Administrative Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
270 Park Avenue
New York, New York  10017                                                 [Date]

Attention:  El Paso Energy Corporation

Ladies and Gentlemen:

       The undersigned, EL PASO ENERGY CORPORATION, refers to the $1,000,000,000
3-Year Revolving Credit and Competitive Advance Facility Agreement, dated as of
August 4, 2000 (the "Credit Agreement", the terms defined therein being used
herein as therein defined), among the undersigned, El Paso Natural Gas Company,
Tennessee Gas Pipeline Company, certain Lenders parties thereto, The Chase
Manhattan Bank, as Administrative Agent and CAF Advance Agent for said Lenders,
Citibank, N.A. and ABN Amro, N.V., as Co-Documentation Agents, and Bank of
America, N.A., as Syndication Agent, and hereby gives you notice, irrevocably,
pursuant to Section 2.2 of the Credit Agreement that the undersigned hereby
requests a Borrowing under the Credit Agreement, and in that connection sets
forth below the information relating to such Borrowing (the "Proposed
Borrowing") as required by Section 2.2(a) of the Credit Agreement:

          (i) The Borrower for the Proposed Borrowing is ______________.

          (ii) The Business Day of the Proposed Borrowing is ___________, 200_.

          (iii) The Type of Advances comprising the Proposed Borrowing is [Base
     Rate Advances] [Eurodollar Rate Advances].

          (iv) The aggregate amount of the Proposed Borrowing is $__________.

          (v) The Interest Period for each Eurodollar Rate Advance made as part
     of the Proposed Borrowing is [______ month[s]].

<PAGE>   94
                                                                             B-2

          The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Borrowing,
before and immediately after giving effect thereto and to the application of the
proceed therefrom:

          (A) each representation and warranty contained in Section 4.1 is
     correct in all material respects as though made on and as of such date; and

          (B) no event has occurred and is continuing, or would result from such
     Proposed Borrowing, which constitutes an Event of Default or Default.

                                   Very truly yours,

                                   EL PASO ENERGY CORPORATION

                                   By:
                                       ------------------------------------
                                       Title:

<PAGE>   95

                                                                               1

                                                                       EXHIBIT C

                                     FORM OF
                               CAF ADVANCE REQUEST

                                                             [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York 10017

     Reference is made to the $1,000,000,000 3-Year Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000, among El
Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro, N.V.,
as Co-Documentation Agents, and Bank of America, N.A., as Syndication Agent (as
the same may be amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"). Terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     This is a [Fixed Rate] [LIBO Rate] CAF Advance Request* pursuant to Section
2.5 of the Credit Agreement requesting quotes for the following CAF Advances:

<TABLE>
<CAPTION>

                                         Loan 1                  Loan 2                 Loan 3
                                      -----------             -----------             ----------
<S>                                   <C>                     <C>                     <C>
Aggregate Principal Amount            $                       $                       $
                                       ----------              ----------              ---------

CAF Advance Date

Maturity Date

Interest Payment Dates
</TABLE>

----------

*    Pursuant to the Credit Agreement, a CAF Advance Request may be transmitted
     in writing, by telecopy, or by telephone, immediately confirmed by
     telecopy. In any case, a CAF Advance Request shall contain the information
     specified in the second paragraph of this form.

<PAGE>   96
                                                                               2

                                       Very truly yours,

                                       [Borrower]

                                    By:
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>   97

                                                                       EXHIBIT D

                                     FORM OF
                                CAF ADVANCE OFFER
                                                               [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York 10017

     Reference is made to the $1,000,000,000 3-Year Day Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000, among El
Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro, N.V.,
as Co-Documentation Agents, and Bank of America, N.A., as Syndication Agent (as
the same may be amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"). Terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     In accordance with Section 2.5 of the Credit Agreement, the undersigned
Lender offers to make CAF Advances thereunder in the following amounts with the
following maturity dates:

<TABLE>
<S>                                                    <C>

CAF Advance Date:                 , 200                Aggregate Maximum Amount: $
                        ----------     --                                        ---------

Maturity Date 1:                                       Maximum Amount: $
                                                                        -----------
                   , 200                               $         offered at        *
         ----------     --                             ---------            -------
                                                       $         offered at        *
                                                       ---------            -------

Maturity Date 2:                                       Maximum Amount: $
                                                                        -----------
                   , 200                               $         offered at        *
         ----------     --                             ---------            -------
                                                       $         offered at        *
                                                       ---------            -------

Maturity Date 3:                                       Maximum Amount: $
                                                                        -----------
                   , 200                               $         offered at        *
         ----------     --                             ---------            -------
                                                       $         offered at        *
                                                       ---------            -------
</TABLE>

----------

*    Insert the interest rate offered for the specified CAF Advance. In the case
     of LIBO Rate CAF Advances, insert a margin bid. In the case of Fixed Rate
     CAF Advances, insert a fixed rate bid.

<PAGE>   98

                                   Very truly yours,

                                   [NAME OF CAF ADVANCE LENDER]

                                   By:
                                       --------------------------------------
                                       Name:
                                       Title:
                                       Telephone No.:
                                       Telecopy No.:

<PAGE>   99

                                                                       EXHIBIT E

                                     FORM OF
                            CAF ADVANCE CONFIRMATION

                                                            [Date]

The Chase Manhattan Bank, as CAF Advance Agent
270 Park Avenue
New York, New York 10017

     Reference is made to the $1,000,000,000 3-Year Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000, among El
Paso Energy Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, The Chase Manhattan Bank, as
Administrative Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro, N.V.,
as Co-Documentation Agents, and Bank of America, N.A., as Syndication Agent (as
the same may be amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"). Terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     In accordance with Section 2.5(d) of the Credit Agreement, the undersigned
accepts and confirms the offers by the CAF Advance Lender(s) to make CAF
Advances to the undersigned on , [date of CAF Advance Borrowing] under Section
2.5(d) in the (respective) amount(s) set forth on the attached list of CAF
Advances offered.

                                   Very truly yours,

                                   [Borrower]

                                   By
                                      ----------------------------------------
                                      Name:
                                      Title:

[The Borrower must attach CAF Advance offer list prepared by the CAF Advance
Agent with accepted amount entered by the Borrower to the right of each CAF
Advance offer].

<PAGE>   100

                                                                       EXHIBIT F

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                            Dated _____________, ____

     Reference is made to the $1,000,000,000 3-Year Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000 (as the same
may be amended or otherwise modified from time to time, the "Credit Agreement")
among EL PASO ENERGY CORPORATION, a Delaware corporation (the "Company"), EL
PASO NATURAL GAS COMPANY, a Delaware corporation, TENNESSEE GAS PIPELINE
COMPANY, a Delaware corporation, the Lenders (as defined in the Credit
Agreement), The Chase Manhattan Bank, as administrative agent (the
"Administrative Agent") and as CAF Advance Agent (the "CAF Advance Agent") for
the Lenders, Citibank, N.A. and ABN Amro, N.V., as Co-Documentation Agents, and
Bank of America, N.A. , as Syndication Agent. Terms defined in the Credit
Agreement are used herein with the same meaning.

     _____________ (the "Assignor") and ____________ (the "Assignee") agree as
follows:

     1. The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, that interest in and to all of
the Assignor's rights and obligations under the Credit Agreement as of the date
hereof which represents the percentage interest specified on Schedule 1 of all
outstanding rights and obligations under the Credit Agreement, including,
without limitation, such interest in the Assignor's Commitment, the Advances
owing to the Assignor, and the Notes held by the Assignor. After giving effect
to such sale and assignment, the Assignee's Commitment and the amount of the
Advances owing to the Assignee will be as set forth in Section 2 of Schedule 1.

     2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of each Borrower or the
performance or observance by each Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Notes referred to in paragraph 1 above and requests that
the Administrative Agent exchange such Notes for new Notes payable to the order
of the Assignee in an amount equal to the Commitment assumed by the Assignee
pursuant hereto or new Notes payable to the order of the Assignee in an amount
equal to the Commitment assumed by the Assignee pursuant hereto and the Assignor
in an amount equal to the Commitment

<PAGE>   101

                                                                             F-2

retained by the Assignor under the Credit Agreement, respectively, as specified
on Schedule 1 hereto.

     3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.1 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Administrative Agent, the Assignor or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Administrative Agent and CAF Advance Agent to take
such action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Administrative Agent and CAF Advance Agent by
the terms thereof, together with such powers as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms all of
the obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender; [and] (vi) specifies as its address for notices the
address set forth beneath its name on the signature pages hereof [and (vii)
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee's status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to the Assignee under the Credit Agreement and the Notes or such other
documents as are necessary to indicate that all such payments are subject to
such rates at a rate reduced by an applicable tax treaty]*.

     4. Following the execution of this Assignment and Acceptance by the
Assignor and the Assignee, it will be delivered to the Administrative Agent for
acceptance and recording by the Administrative Agent. The effective date of this
Assignment and Acceptance shall be the date of acceptance thereof by the
Administrative Agent, unless otherwise specified on Schedule 1 hereto (the
"Effective Date").

     5. Upon such acceptance and recording by the Administrative Agent, as of
the Effective Date, (i) the Assignee shall be a party to the Credit Agreement
and, to the extent provided in this Assignment and Acceptance, have the rights
and obligations of Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

     6. Upon such acceptance and recording by the Administrative Agent, from and
after the Effective Date, the Administrative Agent shall make all payments under
the Credit Agreement and the Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and
commitment fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement
and the Notes for periods prior to the Effective Date directly between
themselves.

----------

*    If the Assignee is organized under the laws of a jurisdiction outside the
     United States.

<PAGE>   102

                                                                             F-3

     7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed by their respective officers thereunto duly
authorized, as of the date first above written, such execution being made on
Schedule 1 hereto.

<PAGE>   103

                                   Schedule 1
                                       to
                            Assignment and Acceptance
                              Dated _________, ____

<TABLE>
<S>                                         <C>                                                      <C>
Section 1.

         Percentage Interest:                                                                                     %
                                                                                                            -------
Section 2.

         Assignee's Commitment:                                                                             $
         Aggregate Outstanding Principal                                                                    -------
           Amount of Advances owing to the Assignee:                                                        $
                                                                                                            -------

         Note payable to the order of the Assignee
                                                                       Dated:                                ,
                                                                                                      -------  ----
                                                Principal amount:                                           $
                                                                                                            -------

         Note payable to the order of the Assignor
                                                                       Dated:                                ,
                                                                                                      -------  ----
                                                Principal amount:                                           $
                                                                                                            -------

Section 3.

         Effective Date*:                                                                                    ,
                                                                                                     --------  ----
</TABLE>

[NAME OF ASSIGNEE]                           [NAME OF ASSIGNOR]

By:                                           By:
   -----------------------------------           -------------------------------
   Title:                                        Title:

Address for notices:
[Address]

----------

*        This date should be no earlier than the date of acceptance by the
         Administrative Agent.

<PAGE>   104

                                                                               2

Consented to:

EL PASO ENERGY CORPORATION                  THE CHASE MANHATTAN BANK, as
                                                Administrative Agent

By:                                         By:
   -------------------------------             -------------------------------
   Title:                                      Title:

<PAGE>   105
                                                                               3

Accepted this __ day
of __________, ___

THE CHASE MANHATTAN BANK, as
  Administrative Agent

By:
   --------------------------------
   Title:

<PAGE>   106

                                                                       EXHIBIT G

FORM OF OPINION OF [ASSOCIATE GENERAL][SENIOR] COUNSEL OF THE COMPANY

                                                                  August 4, 2000

To Each of the Lenders, the Administrative Agent
  and the CAF Advance Agent
  Referred to Below
c/o The Chase Manhattan Bank
270 Park Avenue
New York, New York 10017

                         Re: El Paso Energy Corporation

Ladies and Gentlemen:

     This opinion is furnished to you pursuant to Section 3.2(b)(iii) of the
$1,000,000,000 3-Year Revolving Credit and Competitive Advance Facility
Agreement, dated as of August 4, 2000 (the "Credit Agreement"), among El Paso
Energy Corporation (the "Company"), El Paso Natural Gas Company ("EPNGC"),
Tennessee Gas Pipeline Company ("Tennessee") (Tennessee, together with the
Company and EPNGC, the "Borrowers"), the banks and other financial institutions
from time to time party thereto (each a "Lender", and together the "Lenders"),
The Chase Manhattan Bank, as Administrative Agent (in such capacity, the
"Administrative Agent") and as CAF Advance Agent (in such capacity, the "CAF
Advance Agent") for the Lenders, ABN Amro, N.A. and ABN Amro, N.V., as
Co-Documentation Agents (in such capacity, the "Co-Documentation Agents") , and
ABN Amro, N.A., as Syndication Agent (in such capacity, the "Syndication
Agent"). Unless the context otherwise requires, all capitalized terms used
herein without definition shall have the meanings ascribed to them in the Credit
Agreement.

     I am [Associate General] [Senior] Counsel of the Company, and I, or
attorneys over whom I exercise supervision, have acted as counsel for the
Borrowers in connection with the preparation, execution and delivery of the
Credit Agreement. In that connection, I or such attorneys have examined:

     (1) the Credit Agreement, executed by the parties thereto;

     (2) the Notes, executed by the Borrowers; and

     (3) the other documents furnished by the Borrowers pursuant to Sections 3.1
and 3.2 of the Credit Agreement.

<PAGE>   107

                                                                             G-2

          I, or attorneys over whom I exercise supervision, have also examined
the originals, or copies certified to our satisfaction, of the agreements,
instruments and other documents, and all of the orders, writs, judgments,
awards, injunctions and decrees, which affect or purport to affect the
Borrowers' ability to perform their respective obligations under the Credit
Agreement or the Notes (collectively referred to herein as the "Documents"). In
addition, I, or attorneys over whom I exercise supervision, have examined the
originals, or copies certified to our satisfaction, of such other corporate
records of the Borrowers, certificates of public officials and of officers of
the Borrowers, and agreements, instruments and other documents, as I have deemed
necessary as a basis for the opinions hereinafter expressed. In all such
examinations, I, or attorneys over whom I exercise supervision, have assumed the
legal capacity of all natural persons executing documents, the genuineness of
all signatures on original or certified, conformed or reproduction copies of
documents of all parties (other than, with respect to the Documents, the
Borrowers), the authenticity of original and certified documents and the
conformity to original or certified copies of all copies submitted to such
attorneys or me as conformed or reproduction copies. As to various questions of
fact relevant to the opinions expressed herein, I have relied upon, and assume
the accuracy of, representations and warranties contained in the Credit
Agreement and certificates and oral or written statements and other information
of or from public officials, officers and/or representatives of the Borrowers
and others.

          I have assumed that the parties to the Documents other than the
Borrowers have the power to enter into and perform such documents and that such
documents have been duly authorized, executed and delivered by, and constitute
legal, valid and binding obligations of, such parties.

          The opinions expressed below are limited to the federal laws of the
United States and, to the extent relevant hereto, the General Corporation Law of
the State of Delaware, as currently in effect. I assume no obligation to
supplement this opinion if any applicable laws change after the date hereof or
if I become aware of any facts that might change the opinions expressed herein
after the date hereof.

          Based on the foregoing and upon such investigation as we have deemed
necessary, and subject to the limitations, qualifications and assumptions set
forth herein, I am of the following opinion:

          1. Each Borrower (i) is a corporation duly incorporated and existing
     in good standing under the laws of the State of Delaware, and (ii)
     possesses all the corporate powers and all other authorizations and
     licenses necessary to engage in its business and operations as now
     conducted, the failure to obtain or maintain which would have a Material
     Adverse Effect.

          2. The execution, delivery and performance by each Borrower of the
     Documents to which it is a party are within such Borrower's corporate
     powers and have been duly authorized by all necessary corporate action in
     respect of or by such Borrower, and do not contravene (i) such Borrower's
     charter or by-laws, each as amended to date, (ii) any federal law, rule or
     regulation applicable to such Borrower (excluding provisions of federal law
     expressly referred to in and covered by the opinion of Jones, Day, Reavis &

<PAGE>   108

                                                                             G-3

     Pogue delivered to you in connection with the transactions contemplated
     hereby) or any provision of the General Corporation Law of the State of
     Delaware applicable to such Borrower, or (iii) any contractual restriction
     binding on or affecting such Borrower. The Documents to which it is a party
     have been duly executed and delivered on behalf of each Borrower.

          3. No authorization or approval or other action by, and no notice to
     or filing with, any federal governmental authority or regulatory body
     (including, without limitation, the FERC) is required for the due
     execution, delivery and performance by any Borrower of the Documents to
     which it is a party, except those required in the ordinary course of
     business in connection with the performance by each Borrower of its
     obligations under certain covenants and warranties contained in the
     Documents to which it is a party.

          4. To the best of my knowledge, there is no action, suit or proceeding
     pending or overtly threatened against or involving the Company or any of
     the Principal Subsidiaries which, in my reasonable judgment (taking into
     account the exhaustion of all appeals), would have a material adverse
     effect upon the consolidated financial condition of the Company and its
     consolidated Subsidiaries taken as a whole, or which purports to affect the
     legality, validity, binding effect or enforceability of any Document.

          These opinions are given as of the date hereof and are solely for your
benefit in connection with the transactions contemplated by the Credit
Agreement. These opinions may not be relied upon by you for any other purpose or
relied upon by any other person for any purpose without my prior written
consent.

                                    Very truly yours,

<PAGE>   109

                                                                       EXHIBIT H

               FORM OF OPINION OF NEW YORK COUNSEL TO THE COMPANY

                                 August 4, 2000

To Each of the Lenders, the Administrative Agent, the CAF Advance Agent, the
Co-Documentation Agents and the Syndication Agent Referred to Below

c/o The Chase Manhattan Bank
270 Park Avenue, 10th Floor
New York, New York  10017

                  Re:      $1,000,000,000 3-Year Revolving Credit
                           and Competitive Advance Facility Agreement
                           dated as of August 4, 2000

Dear Ladies and Gentlemen:

          We have acted as special New York counsel for El Paso Energy
Corporation, a Delaware corporation (the "Company"), El Paso Natural Gas
Company, a Delaware corporation ("EPNGC") and Tennessee Gas Pipeline Company, a
Delaware corporation ("Tennessee") (Tennessee together with the Company and
EPNGC, the "Borrowers"), in connection with the $1,000,000,000 3-Year Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000
(the "Financing Agreement"), among the Company, EPNGC, Tennessee, the banks and
other financial institutions from time to time party thereto (each a "Lender",
and together the "Lenders"), The Chase Manhattan Bank, as administrative agent
(in such capacity, the "Administrative Agent") and as CAF Advance Agent (in such
capacity, the "CAF Advance Agent") for the Lenders, Citibank, N.A. and ABN Amro,
N.V., as Co-Documentation Agents (in such capacity, the Co-Documentation
Agents"), and Bank of America, N.A., as Syndication Agent (in such capacity, the
"Syndication Agent"). This opinion is delivered to you pursuant to Section
3.2(b)(iv) of the Financing Agreement. Capitalized terms used herein and not
otherwise defined have the meanings assigned such terms in the Financing
Agreement. With your permission, all assumptions and statements of reliance
herein have been made without any independent investigation or verification on
our part except to the extent otherwise expressly stated, and we express no
opinion with respect to the subject matter or accuracy of the assumptions or
items upon which we have relied.

<PAGE>   110

                                                                             H-2

          In connection with the opinions expressed herein, we have examined
such documents, records and matters of law as we have deemed necessary for the
purposes of this opinion. We have examined, among other documents, the
following:

          (a) An executed copy of the Financing Agreement; and

          (b) An executed copy of each of the Notes.

The documents referred to in items (a) and (b) above are referred to herein
collectively as the "Documents."

          In all such examinations, we have assumed the legal capacity of all
natural persons executing documents, the genuineness of all signatures, the
authenticity of original and certified documents and the conformity to original
or certified copies of all copies submitted to us as conformed or reproduction
copies. As to various questions of fact relevant to the opinions expressed
herein, we have relied upon, and assume the accuracy of, representations and
warranties contained in the Documents and certificates and oral or written
statements and other information of or from representatives of the Borrowers and
others and assume compliance on the part of all parties to the Documents with
their covenants and agreements contained therein. With respect to the opinions
expressed in paragraph (a) below, our opinions are limited (x) to our actual
knowledge, if any, of the Borrowers' specially regulated business activities and
properties based solely upon an officer's certificate in respect of such matters
and without any independent investigation or verification on our part and (y) to
our review of only those laws and regulations that, in our experience, are
normally applicable to transactions of the type contemplated by the Documents.

          To the extent it may be relevant to the opinions expressed herein, we
have assumed that the parties to the Documents have the power to enter into and
perform such documents and to consummate the transactions contemplated thereby
and that such documents have been duly authorized, executed and delivered by,
and, except as set forth in paragraph (b) with respect to the Borrowers,
constitute legal, valid and binding obligations of, such parties.

          Based upon the foregoing, and subject to the limitations,
qualifications and assumptions set forth herein, we are of the opinion that:

          (a) The execution and delivery to the Administrative Agent, the CAF
Advance Agent, the Co-Documentation Agents, the Syndication Agent and the
Lenders by each Borrower of the Documents to which it is a party and the
performance by each Borrower of its obligations thereunder (i) do not require
under present law any filing or registration by such Borrower with, or approval
or consent to such Borrower of, any governmental agency or authority of the
State of New York that has not been made or obtained except those required in
the ordinary course of business in connection with the performance by such
Borrower of its obligations under certain covenants and warranties contained in
the Documents to which it is a party and (ii) do not violate any present law, or
present regulation of any governmental agency or authority, of the State of New
York applicable to such Borrower or its property.

<PAGE>   111

                                                                             H-3

          (b) The Documents to which it is a party constitute legal, valid and
binding obligations of each Borrower enforceable against such Borrower in
accordance with their respective terms.

          (c) The borrowings by each Borrower under the Financing Agreement and
the applications of the proceeds thereof as provided in the Financing Agreement
will not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

          The opinions set forth above are subject to the following
qualifications:

     (A)  We express no opinion as to:

          (i) the validity, binding effect or enforceability (a) of any
     provision of the Documents relating to indemnification, contribution or
     exculpation in connection with violations of any securities laws or
     statutory duties or public policy, or in connection with willful, reckless
     or criminal acts or gross negligence of the indemnified or exculpated party
     or the party receiving contribution; or (b) of any provision of any of the
     Documents relating to exculpation of any party in connection with its own
     negligence that a court would determine in the circumstances under
     applicable law to be unfair or insufficiently explicit;

          (ii) the validity, binding effect or enforceability of (a) any
     purported waiver, release, variation, disclaimer, consent or other
     agreement to similar effect (all of the foregoing, collectively, a
     "Waiver") by the Borrowers under the Documents to the extent limited by
     provisions of applicable law (including judicial decisions), or to the
     extent that such a Waiver applies to a right, claim, duty, defense or
     ground for discharge otherwise existing or occurring as a matter of law
     (including judicial decisions), except to the extent that such a Waiver is
     effective under and is not prohibited by or void or invalid under
     provisions of applicable law (including judicial decisions), (b) any
     provision of any Document relating to choice of governing law to the extent
     that the validity, binding effect or enforceability of any such provision
     is to be determined by any court other than a court of the State of New
     York or (c) any provision of any Document relating to forum selection to
     the extent the forum is a federal court;

          (iii) the enforceability of any provision in the Documents specifying
     that provisions thereof may be waived only in writing, to the extent that
     an oral agreement or an implied agreement by trade practice or course of
     conduct has been created that modifies any provision of the Documents;

          (iv) the effect of any law of any jurisdiction other than the State of
     New York wherein the Administrative Agent, the CAF Advance Agent, the
     Co-Documentation Agents, the Syndication Agent or any Lender may be located
     or wherein enforcement of any document referred to above may be sought that
     limits the rates of interest legally chargeable or collectible; and

          (v) any approval, consent or authorization of the Federal Energy
     Regulatory Commission or any other United States federal agency or
     authority needed in connection

<PAGE>   112

                                                                             H-4

     with the execution, delivery and performance by any Borrower of the
     Documents to which it is a party, the consummation of the transactions
     contemplated thereby and compliance with the terms and conditions thereof.

     (B) Our opinions above are subject to (i) applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, voidable preference, moratorium
or similar laws, and related judicial doctrines, from time to time in effect
affecting creditors' rights and remedies generally, (ii) general principles of
equity (including, without limitation, standards of materiality, good faith,
fair dealing and reasonableness, equitable defenses and limits on the
availability of equitable remedies), whether such principles are considered in a
proceeding at law or in equity and (iii) the qualification that certain other
provisions of the Documents may be unenforceable in whole or in part under the
laws (including judicial decisions) of the State of New York or the United
States of America, but the inclusion of such provisions does not affect the
validity as against any Borrower of the Documents to which it is a party, taken
as a whole, and the Documents contain adequate provisions for enforcing payment
of the obligations governed thereby, subject to the other qualifications
contained in this letter.

     (C) Our opinions as to enforceability are subject to the effect of
generally applicable rules of law that:

          (i) limit the availability of a remedy under certain circumstances
     when another remedy has been elected; and

          (ii) may, where less than all of a contract may be unenforceable,
     limit the enforceability of the balance of the contract to circumstances in
     which the unenforceable portion is not an essential part of the agreed
     exchange; and

          (iii) govern and afford judicial discretion regarding the
     determination of damages and entitlement to attorneys' fees and other
     costs.

     (D) For the purposes of the opinion set forth in paragraph (c) above, we
have assumed that (i) none of the Administrative Agent, the CAF Advance Agent,
the Co-Documentation Agents, the Syndication Agent or any of the Lenders has or
will have the benefit of any agreement or arrangement (excluding the Documents)
pursuant to which any Advances are directly or indirectly secured by Margin
Stock, (ii) none of the Administrative Agent, the CAF Advance Agent, the
Co-Documentation Agents, the Syndication Agent, any of the Lenders or any of
their respective affiliates has extended or will extend any other credit to any
of the Borrowers directly or indirectly secured by Margin Stock and (iii) none
of the Administrative Agent, the CAF Advance Agent, the Co-Documentation Agents
and the Syndication Agents or any of the Lenders has relied or will rely upon
any Margin Stock as collateral in extending or maintaining any Advances pursuant
to the Financing Agreement.

     (E) For purposes of our opinions above insofar as they relate to the
Borrowers, we have assumed that (i) each Borrower is a corporation validly
existing in good standing in its jurisdiction of incorporation, has all
requisite power and authority, and has obtained all requisite corporate,
shareholder, third party and governmental authorizations, consents and
approvals, and made all requisite filings and registrations, necessary to
execute, deliver and perform the

<PAGE>   113

                                                                             H-5

Documents to which it is a party (except to the extent noted in paragraph (a)
above), and that such execution, delivery and performance will not violate or
conflict with any law, rule, regulation, order, decree, judgment, instrument or
agreement binding upon or applicable to such Borrower or its properties (except
to the extent noted in paragraph (a) above), and (ii) the Documents to which
each Borrower is a party have been duly executed and delivered by such Borrower.

          The opinions expressed herein are limited to the federal laws of the
United States of America (in the case of the matters covered in paragraph (c)
above) and the laws of the State of New York, as currently in effect, except
that we express no opinion with respect to laws, rules or regulations of the
State of New York, or of any governmental agency or authority thereof,
applicable to companies engaged in the gathering, processing, transmission,
distribution or marketing of natural gas or other hydrocarbon derivatives or
power generation or the generation, transmission, distribution or marketing of
electricity, or as to filings, registrations, approvals or consents under or by
such laws, rules or regulations.

          We express no opinion as to the compliance or noncompliance, or the
effect of the compliance or noncompliance, of each of the addressees with any
state or federal laws or regulations applicable to each of them by reason of
their status as or affiliation with a federally insured depository institution.

          The opinions expressed herein are solely for the benefit of the
Administrative Agent, CAF Advance Agent, the Co-Documentation Agents, the
Syndication Agent and the Lenders and may not be relied on in any manner or for
any purpose by any other person or entity.

                                      Very truly yours,

                                      JONES, DAY, REAVIS & POGUE

                                      By:
                                         -----------------------------------

<PAGE>   114

                                                                       EXHIBIT I

                          [LETTERHEAD OF PROCESS AGENT]

                                                                          [DATE]

To each of the Lenders parties
  to the Credit Agreement (as
  defined and referred to
  below) and to The Chase Manhattan Bank
  as Administrative Agent and
  CAF Advance Agent for said Lenders
c/o The Chase Manhattan Bank
270 Park Avenue
New York, New York 10017

To El Paso Energy Corporation
1001 Louisiana Street
Houston, Texas 77002

        El Paso Energy Corporation/El Paso Natural Gas Company/Tennessee
                              Gas Pipeline Company

Gentlemen:

          Reference is made to that certain $1,000,000,000 3-Year Revolving
Credit and Competitive Advance Facility Agreement, dated as of August 4, 2000
(said Agreement, as it may hereafter be amended, supplemented or otherwise
modified from time to time, being the "Credit Agreement", the terms defined
therein being used herein with the same meaning) among El Paso Energy
Corporation (the "Company"), El Paso Natural Gas Company ("EPNGC"), Tennessee
Gas Pipeline Company ("Tennessee") (Tennessee, together with the Company and
EPNGC, the "Borrowers") , certain banks and other financial institutions from
time to time party thereto as Lenders thereunder (the "Lenders"), The Chase
Manhattan Bank, as Administrative Agent and CAF Advance Agent (in such
capacities, the "Administrative Agent" and the "CAF Advance Agent") for the
Lenders, Citibank, N.A. and ABN Amro, N.V., as Co-Documentation Agents, and Bank
of America, N.A., as Syndication Agent.

          Pursuant to Section 9.9(a) of the Credit Agreement each of the
Borrowers has appointed the undersigned (with an office on the date hereof at
1633 Broadway, New York, New York 10019) as Process Agent to receive on behalf
of such Borrower and its property service of copies of the summons and complaint
and any other process which may be served by the

<PAGE>   115

                                                                             I-2

Administrative Agent, the CAF Advance Agent, any Lender or the holder of any
Note in any action or proceeding by the Administrative Agent, the CAF Advance
Agent, any Lender or the holder of any Note in any New York State or Federal
court sitting in New York City in respect of, but only in respect of, any claims
or causes of action arising out of or relating to the Credit Agreement and the
Notes issued pursuant thereto.

          The undersigned hereby accepts such appointment as Process Agent and
agrees with each of you that (i) the undersigned will not terminate the
undersigned's agency as such Process Agent prior to ______ __, 200_ (and hereby
acknowledges that the undersigned has been paid in full by the Borrower for its
services as Process Agent through such date), (ii) the undersigned will maintain
an office in New York City through such date and will give the Administrative
Agent prompt notice of any change of address of the undersigned, (iii) the
undersigned will perform its duties as Process Agent in accordance with Section
9.9(a) of the Credit Agreement and (iv) the undersigned will forward forthwith
to the Borrower at its address specified below copies of any summons, complaint
and other process which the undersigned receives in connection with its
appointment as Process Agent.

          This acceptance and agreement shall be binding upon the undersigned
and all successors of the undersigned.

                                Very truly yours,

                                CT CORPORATION SYSTEM

                                By:
                                   ---------------------------------------
                                   Title:

Address of the Borrower:

[Address]

<PAGE>   116

                                                                       EXHIBIT J

                                     FORM OF
                                JOINDER AGREEMENT

          Reference is made to the $1,000,000,000 3-Year Revolving Credit and
CAF Advance Facility Agreement, dated as of August 4, 2000 (as amended,
supplemented or otherwise modified from time to time, the "Credit Agreement";
terms defined therein being used herein as therein defined), among El Paso
Energy Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline Company,
certain banks and other financial institutions from time to time party thereto,
The Chase Manhattan Bank, as Administrative Agent and CAF Advance Agent,
Citibank, N.A. and ABN Amro, N.V., as Co-Documentation Agents, and Bank of
America, N.A., as Syndication Agent.

          The undersigned hereby acknowledges that it has received and reviewed
a copy (in execution form) of the Credit Agreement, and agrees to:

          (a) join the Credit Agreement as a Borrower party thereto;

          (b) be bound by all covenants, agreements and acknowledgments
attributable to a Borrower in the Credit Agreement and any Note to which it is a
party; and

          (c) perform all obligations required of it by the Credit Agreement and
any Note to which it is a party.

          The undersigned hereby represents and warrants that the
representations and warranties with respect to it contained in, or made or
deemed made by it in, Article IV of the Credit Agreement are true and correct on
the date hereof.

          THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement
to be duly executed and delivered in New York, New York by its proper and duly
authorized officer as of this ____ day of ______,___ .

                                   [Borrower]

                                   By:
                                       ------------------------------------
                                       Title:

<PAGE>   117

                                                                             J-2

ACKNOWLEDGED AND AGREED TO:

[EL PASO ENERGY CORPORATION]

By:
    -----------------------------
    Title:

<PAGE>   118

                                                                       EXHIBIT K

                     FORM OF OPINION OF [ASSOCIATE GENERAL]
                         [SENIOR] COUNSEL OF THE COMPANY

          (a) Each of the Company and the Borrowing Subsidiaries (i) is a
corporation duly incorporated and existing in good standing under the laws of
the jurisdiction of its organization, and (ii) possesses all the corporate
powers and all other authorizations and licenses necessary to engage in its
business and operations as now conducted, the failure to obtain or maintain
which would have a Material Adverse Effect.

          (b) The execution and delivery by the Company and the Borrowing
Subsidiary of the Joinder Agreement and by the Borrowing Subsidiary of the Notes
made by it and the performance by the Borrowing Subsidiary of its obligations as
a "Borrower" under the Credit Agreement and the Notes made by it are within such
corporation's corporate powers and have been duly authorized by all necessary
corporate action in respect of or by each of the Company and the Borrowing
Subsidiary (as applicable), and do not contravene (i) the Company's or the
Borrowing Subsidiary's charter or by-laws, each as amended to date, (ii) any
federal law, rule or regulation applicable to the Company or the Borrowing
Subsidiary (excluding provisions of federal law expressly referred to in and
covered by the opinion of [New York Counsel] delivered to you in connection with
the transactions contemplated hereby) or any provision of the General
Corporation Law of the State of Delaware applicable to such corporation, or
(iii) any contractual restriction binding on or affecting the Company or the
Borrowing Subsidiary. The Joinder Agreement has been duly executed and delivered
on behalf of the Company and the Borrowing Subsidiary and the Notes made by the
Borrowing Subsidiary have been duly executed and delivered on behalf of the
Borrowing Subsidiary.

          (c) No authorization or approval or other action by, and no notice to
or filing with, any federal governmental authority or regulatory body
(including, without limitation, the FERC) is required for (i) the due execution
and delivery by the Company or the Borrowing Subsidiary of the Joinder
Agreement, (ii) the performance by the Borrowing Subsidiary of its obligations
as a "Borrower" under the Credit Agreement or (iii) the execution, delivery and
performance by the Borrowing Subsidiary of the Notes made by it, except those
required in the ordinary course of business in connection with the performance
by the Company or the Borrowing Subsidiary of its obligations under certain
covenants and warranties contained in the Joinder Agreement, the Credit
Agreement and the Notes and those which have been obtained and are in full force
and effect.

          (d) To the best of my knowledge, there is no action, suit or
proceeding pending or overtly threatened against or involving the Company or any
of the Principal

<PAGE>   119

                                                                             K-2

Subsidiaries which, in my reasonable judgment (taking into account the
exhaustion of all appeals), would have a material adverse effect upon the
consolidated financial condition of the Company and its consolidated
Subsidiaries taken as a whole, or which purports to affect the legality,
validity, binding effect or enforceability of the Joinder Agreement, the Credit
Agreement or the Notes.

<PAGE>   120

                                                                       EXHIBIT L

                           FORM OF OPINION OF NEW YORK
                             COUNSEL TO THE COMPANY

          (a) The execution and delivery to the Administrative Agent, the CAF
Advance Agent, the Co-Documentation Agents, the Syndication Agent and the
Lenders by the Company and the Borrowing Subsidiary of the Joinder Agreement and
by the Borrowing Subsidiary of the Notes made by it and the performance by the
Borrowing Subsidiary of its obligations as a "Borrower" under the Credit
Agreement and the Notes made by it (i) do not require under present law any
filing or registration by the Company or the Borrowing Subsidiary with, or
approval or consent to the Company or the Borrowing Subsidiary of, any
governmental agency or authority of the State of New York that has not been made
or obtained, except those, if any, required in the ordinary course of business
in connection with the performance by the Company or the Borrowing Subsidiary of
their respective obligations under certain covenants and warranties contained in
the Joinder Agreement, the Credit Agreement and the Notes and (ii) do not
violate any present law, or present regulation of any governmental agency or
authority, of the State of New York applicable to the Company or the Borrowing
Subsidiary or its respective property.

          (b) The Joinder Agreement, the Credit Agreement and the Notes (as
applicable) constitute the legal, valid and binding obligations of each of the
Company and the Borrowing Subsidiary enforceable against each of the Company and
the Borrowing Subsidiary in accordance with their respective terms.

          (c) The borrowings by the Borrowing Subsidiary under the Credit
Agreement and the applications of the proceeds thereof as provided in the Credit
Agreement will not violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System.

<PAGE>   121

                                                                       EXHIBIT M

                                     FORM OF
                                EXTENSION REQUEST

                                                                 [Date]

The Chase Manhattan Bank, as Administrative Agent
270 Park Avenue
New York, New York 10017

Attention: Jackie Reid

Gentlemen:

          Reference is made to the $1,000,000,000 3-Year Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000, among the
undersigned, El Paso Natural Gas Company, Tennessee Gas Pipeline Company,
certain Lenders parties thereto, The Chase Manhattan Bank, as Administrative
Agent and CAF Advance Agent, Citibank, N.A. and ABN Amro, N.V., as
Co-Documentation Agents, and ABN Amro, N.A., as Syndication Agent (as the same
may be amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"). Terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

          The undersigned hereby represents and warrants that no Event of
Default has occurred or is continuing.

          This is an Extension Request pursuant to Section 2.23 of the Credit
Agreement requesting an extension of the Stated Termination Date to [INSERT
REQUESTED TERMINATION DATE]. Please transmit a copy of this Extension Request to
each of the Lenders.

                                       EL PASO ENERGY CORPORATION

                                       By:
                                          -----------------------------------
                                          Title:

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