Document:

EX-10.1

$150,000,000

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

Dated as of August 18, 2009

among

CONSUMERS ENERGY COMPANY,

as the Company,

THE FINANCIAL INSTITUTIONS NAMED HEREIN,

as the Banks,

UNION BANK, N.A.,

as Agent,

BARCLAYS BANK PLC, DEUTSCHE BANK SECURITIES INC.

AND THE ROYAL BANK OF SCOTLAND PLC,

as Co-Syndication Agents,

and

BNP PARIBAS,

as Documentation Agent

UNION BANK, N.A.,

as Sole Lead Arranger and Sole Bookrunner

CH1 4720954v.9

TABLE OF CONTENTS

Page

	 	 	 
	ARTICLE I DEFINITIONS
	1.1

1.2

1.3
	 	Definitions

Interpretation

Accounting Terms

	 	 	 
	ARTICLE II THE ADVANCES
	2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

2.11

2.12

2.13

2.14

2.15
	 	Commitment

Repayment

Ratable Loans

Types of Advances

Fees and Changes in Commitments

Minimum Amount of Advances

Optional Principal Payments

Method of Selecting Types and Interest Periods for New Advances

Conversion and Continuation of Outstanding Advances

Interest Rates, Interest Payment Dates

Rate after Maturity

Method of Payment; Sharing Set-Offs

Bonds; Record-keeping; Telephonic Notices

Lending Installations

Non-Receipt of Funds by the Agent

	 	 	 
	ARTICLE III LETTER OF CREDIT FACILITY
	3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8
	 	Issuance

Participations

Notice

LC Fees

Administration; Reimbursement by Banks

Reimbursement by Company

Obligations Absolute

Actions of LC Issuers

	 	3.9	 	Indemnification

	 	3.10	 	Banks’ Indemnification

	 	3.11	 	Rights as a Bank

	 	 	 
	ARTICLE IV CHANGE IN CIRCUMSTANCES
	4.1

4.2

4.3

4.4

4.5

4.6

4.7
	 	Yield Protection

Replacement of Banks

Availability of Eurodollar Rate Loans

Funding Indemnification

Taxes

Bank Certificates, Survival of Indemnity

Defaulting Banks

	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

5.11

5.12

5.13

5.14

5.15
	 	Incorporation and Good Standing

Corporate Power and Authority: No Conflicts

Governmental Approvals

Legally Enforceable Agreements

Financial Statements

Litigation

Margin Stock

ERISA

Insurance

Taxes

Investment Company Act

Bonds

Disclosure

OFAC

Delivery of Documents

	 	 	 
	ARTICLE VI AFFIRMATIVE COVENANTS
	6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

6.10
	 	Payment of Taxes, Etc

Maintenance of Insurance

Preservation of Corporate Existence, Etc

Compliance with Laws, Etc

Visitation Rights

Keeping of Books

Reporting Requirements

Use of Proceeds

Maintenance of Properties, Etc

Bonds

	 	 	 
	ARTICLE VII NEGATIVE COVENANTS
	7.1

7.2

7.3

7.4

7.5

7.6

7.7
	 	Liens

Sale of Assets

Mergers, Etc

Compliance with ERISA

Change in Nature of Business

Off-Balance Sheet Liabilities

Transactions with Affiliates

	 	 	 
	ARTICLE VIII FINANCIAL COVENANT
	ARTICLE IX EVENTS OF DEFAULT
	9.1

9.2
	 	Events of Default

Remedies

	 	 	 
	ARTICLE X WAIVERS, AMENDMENTS AND REMEDIES
	10.1

10.2
	 	Amendments

Preservation of Rights

	 	 	 
	ARTICLE XI CONDITIONS PRECEDENT
	11.1

11.2
	 	Effectiveness of this Agreement

Each Credit Extension

	 	 	 
	ARTICLE XII GENERAL PROVISIONS
	12.1

12.2

12.3

12.4

12.5

12.6

12.7

12.8

12.9

12.10

12.11

12.12

12.13

12.14

12.15

12.16

12.17
	 	Successors and Assigns

Survival of Representations

Governmental Regulation

Taxes

Choice of Law

Headings

Entire Agreement

Expenses; Indemnification

Severability of Provisions

Setoff

Ratable Payments

Nonliability

Other Agents

USA Patriot Act

Electronic Delivery

Amendment and Restatement

Confidentiality

	 	 	 
	ARTICLE XIII THE AGENT
	13.1

13.2

13.3

13.4

13.5

13.6

13.7

13.8

13.9

13.10

13.11

13.12
	 	Appointment

Powers

General Immunity

No Responsibility for Recitals, Etc

Action on Instructions of Banks

Employment of Agents and Counsel

Reliance on Documents; Counsel

Agent’s Reimbursement and Indemnification

Rights as a Bank

Bank Credit Decision

Successor Agent

Agent and Arranger Fees

	 	 	 
	ARTICLE XIV NOTICES
	14.1

14.2
	 	Giving Notice

Change of Address

ARTICLE XV COUNTERPARTS

ARTICLE XVI RELEASE OF BONDS

	 	 	 
	SCHEDULES

	 	

	 

	 	

	Schedule 1

Schedule 2

EXHIBITS

	 	Pricing Schedule

Commitment Schedule

	 

	 	

	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

	 	Required Opinions from James E. Brunner, Esq., General Counsel of

the Company

Form of Compliance Certificate

Form of Assignment and Assumption Agreement

Terms of Subordination (Junior Subordinated Debt)

Terms of Subordination (Guaranty of Hybrid Equity

Securities/Hybrid Preferred Securities)

AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT, dated as of August 18, 2009, is among
CONSUMERS ENERGY COMPANY, a Michigan corporation (the “Company”), the financial
institutions listed on the signature pages hereof (together with their respective successors and
assigns, the “Banks”) and UNION BANK, N.A. (formerly Union Bank of California, N.A.), as
Agent.

W I T N E S S E T H:

WHEREAS, the Company, the Banks and the Agent are parties to Existing Credit Agreement (as
defined herein) pursuant to which, among other things, the Banks agreed to enter, subject to the
terms and conditions set forth therein, into a credit facility in an aggregate amount of
$150,000,000;

WHEREAS, the parties hereto have agreed to amend and restate the Existing Credit Agreement
pursuant to the terms and conditions of this Agreement; and

WHEREAS, the amendment and restatement of the Existing Credit Agreement pursuant to this
Agreement shall have the effect of a substitution of terms of the Existing Credit Agreement, but
will not have the effect of causing a novation, refinancing or other repayment of the “Obligations”
of the Company under and as defined in the Existing Credit Agreement (hereinafter, the
“Original Obligations”), which Original Obligations shall remain repayable pursuant to the
terms of this Agreement (it being understood and agreed that no “Loans” or “Reimbursement
Obligations” under and as defined in the Existing Credit Agreement remain outstanding as of the
Amendment Effective Date);

NOW THEREFORE, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

1.1 Definitions. As used in this Agreement:

“Accounting Changes” – see Section 1.3.

“Administrative Questionnaire” means an administrative questionnaire, substantially in
the form supplied by the Agent, completed by a Bank and furnished to the Agent in connection with
this Agreement.

“Advance” means a group of Loans made by the Banks hereunder of the same Type, made,
converted or continued on the same day and, in the case of Eurodollar Rate Loans, having the same
Interest Period.

“Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling (including all directors and officers of such Person), controlled by, or under direct
or indirect common control with such Person. A Person shall be deemed to control another entity if
such Person possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of such entity, whether through the ownership of voting securities, by
contract or otherwise.

“Agent” means Union Bank, in its capacity as administrative agent for the Banks
pursuant to Article XIII, and not in its individual capacity as a Bank, and any successor
Agent appointed pursuant to Article XIII.

“Aggregate Commitment” means the aggregate amount of the Commitments of all Banks.

“Aggregate Outstanding Credit Exposure” means, at any time, the aggregate of the
Outstanding Credit Exposure of all the Banks.

“Agreement” means this Amended and Restated Revolving Credit Agreement, as amended
from time to time.

“Alternate Base Rate” means, for any day, a rate per annum equal to the highest of (i)
the Reference Rate for such day, (ii) the sum of the Federal Funds Effective Rate for such day
plus 0.50% per annum and (iii) except during a period when the Eurodollar Rate is
unavailable pursuant to Section 4.3, the sum of the Eurodollar Rate as quoted (for an
Interest Period of one month) plus 1.00% .

“Amendment Effective Date” means August 18, 2009.

“Applicable Margin” means, with respect to Advances of any Type at any time, the
percentage rate per annum which is applicable at such time with respect to Advances of such Type as
set forth in Schedule 1.

“Arranger” means Union Bank.

“Assignment Agreement” – see Section 12.1(e).

“Available Aggregate Commitment” means, at any time, the Available Commitment then in
effect minus the Aggregate Outstanding Credit Exposure at such time.

“Available Commitment” means, at any time, the lesser of (i) the Aggregate Commitment
and (ii) the face amount of the Bonds.

“Banks” – see the preamble.

“Base Eurodollar Rate” means, with respect to a Eurodollar Advance for the relevant
Interest Period, the per annum interest rate determined by the offered rate per annum at which
deposits in U.S. dollars, for a period equal or comparable to such Interest Period, appears on page
3750 (or any successor page) of the Dow Jones Market Service as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, or in the event such offered rate is
not available from the Dow Jones Market Service page, the average rate offered on deposits in U.S.
dollars, for a period equal or comparable to such Interest Period, to the Agent by prime banks in
the London interbank market at approximately 11:00 a.m. (London time), two Business Days prior to
the first day of such Interest Period, and in an amount substantially equal to the amount of Union
Bank’s relevant Eurodollar Rate Loan for such Interest Period (or, in the event that Union Bank is
not a Bank hereunder, in the amount of $5,000,000).

“Bond Delivery Agreement” means that certain Bond Delivery Agreement, dated as of the
Original Closing Date, between the Company and the Agent, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

“Bonds” means the series of interest-bearing First Mortgage Bonds created under the
Supplemental Indenture and issued in favor of the Agent.

“Borrowing Date” means a date on which a Credit Extension is made hereunder.

“Borrowing Notice” – see Section 2.8.

“Business Day” means (i) with respect to any borrowing, payment or rate selection of
Eurodollar Advances, a day (other than a Saturday or Sunday) on which banks generally are open in
New York, New York and Los Angeles, California for the conduct of substantially all of their
commercial lending activities, interbank wire transfers can be made on the Fedwire system and
dealings in United States dollars are carried on in the London interbank market and (ii) for all
other purposes, a day (other than a Saturday or Sunday) on which banks generally are open in New
York, New York and Los Angeles, California for the conduct of substantially all of their commercial
lending activities and interbank wire transfers can be made on the Fedwire system.

“Capital Lease” means any lease which has been or would be capitalized on the books of
the lessee in accordance with GAAP.

“CMS” means CMS Energy Corporation, a Michigan corporation.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Collateral Shortfall Amount” – see Section 9.2.

“Commitment” means, for each Bank, the obligation of such Bank to make Loans to, and
participate in Facility LCs issued upon the application of, the Company in an aggregate amount not
exceeding the amount set forth on Schedule 2 or as set forth in any Assignment Agreement
that has become effective pursuant to Section 12.1, as such amount may be modified from
time to time.

“Commitment Fee” – see Section 2.5.

“Commitment Fee Rate” means, at any time, the percentage rate per annum at which
Commitment Fees are accruing on the Unused Commitment as set forth in Schedule 1.

“Company” – see the preamble.

“Consolidated Subsidiary” means any Subsidiary the accounts of which are or are
required to be consolidated with the accounts of the Company in accordance with GAAP.

“Credit Documents” means this Agreement, the Facility LC Applications (if any), the
Supplemental Indenture, the Bond Delivery Agreement, the Proposal Letter, any promissory note
issued pursuant to Section 2.13(a) and the Bonds.

“Credit Extension” means the making of an Advance or the issuance of a Facility LC
hereunder.

“Debt” means, with respect to any Person, and without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all indebtedness of such Person for the
deferred purchase price of property or services (other than trade accounts payable arising in the
ordinary course of business which are not overdue), (c) liabilities for accumulated funding
deficiencies (prior to the effectiveness of the applicable provisions of the Pension Protection Act
of 2006 with respect to a Plan) and liabilities for failure to make a payment required to satisfy
the minimum funding standard within the meaning of Section 412 of the Code or Section 302 of ERISA
(on and after the effectiveness of the applicable provisions of the Pension Protection Act of 2006
with respect to a Plan), (d) all liabilities arising in connection with any withdrawal liability
under ERISA to any Multiemployer Plan, (e) all obligations of such Person arising under acceptance
facilities, (f) all obligations of such Person as lessee under Capital Leases, (g) all obligations
of such Person arising under any interest rate swap, “cap”, “collar” or other hedging agreement;
provided that for purposes of the calculation of Debt for this clause (g) only, the
actual amount of Debt of such Person shall be determined on a net basis to the extent such
agreements permit such amounts to be calculated on a net basis, and (h) all guaranties,
endorsements (other than for collection in the ordinary course of business) and other contingent
obligations of such Person to assure a creditor against loss (whether by the purchase of goods or
services, the provision of funds for payment, the supply of funds to invest in any Person or
otherwise) in respect of indebtedness or obligations of any other Person of the kinds referred to
in clauses (a) through (g) above.

“Declining Bank” – see Section 12.15(a).

“Default” means an event which but for the giving of notice or lapse of time, or both,
would constitute an Event of Default.

“Defaulting Bank” means any Bank, as reasonably determined by the Agent, that has (a)
failed to fund any portion of its Loans or participations in Facility LC (and any Modifications
thereof) within three (3) Business Days of the date required to be funded by it hereunder, unless
the subject of a good faith dispute, (b) notified the Company, the Agent, the LC Issuer or any Bank
in writing that it does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement or generally under other agreements in which it commits to
extend credit, (c) failed, within three (3) Business Days after request by the Agent, to confirm
that it will comply with the terms of this Agreement relating to its obligations to fund
prospective Loans and participations in then outstanding Facility LC (provided that if such Bank
shall subsequently provide such confirmation it shall no longer be a Defaulting Bank), (d)
otherwise failed to pay over to the Agent or any other Bank any other amount required to be paid by
it hereunder within three Business (3) Days of the date when due, unless the subject of a good
faith dispute, or (e) become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar
Person charged with reorganization or liquidation of its business or custodian, appointed for it,
or has taken any action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment or has a parent company that has become the
subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, assignee for the benefit of creditors or similar Person charged with reorganization
or liquidation of its business or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or
appointment; provided, that (i) if a Bank would be a “Defaulting Bank” solely by reason of
events relating to a parent company of such Bank or solely because a governmental authority has
been appointed as receiver, conservator, trustee or custodian for such Bank, in each case as
described in clause (e) above, the Agent may, in its discretion, determine that such Bank
is not a “Defaulting Bank” if and for so long as the Agent is satisfied that such Bank will
continue to perform its funding obligations hereunder, (ii) subject to Section 4.7(e), the
Agent, the Company and the LC Issuers, by joint notice to the Banks, may declare that a Defaulting
Bank is no longer a “Defaulting Bank” if the Agent, the Company and the LC Issuers each determines,
in its sole respective discretion, that the circumstances that resulted in such Bank becoming a
“Defaulting Bank” no longer apply, and (iii) a Bank shall not be a Defaulting Bank solely by virtue
of the ownership or acquisition of voting stock or any other equity interest in such Bank or a
parent company thereof by a governmental authority or an instrumentality thereof.

“Designated Officer” means the Chief Financial Officer, the Treasurer, an Assistant
Treasurer, any Vice President in charge of financial or accounting matters or the principal
accounting officer of the Company.

“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any governmental agency or authority relating in any way to the environment, preservation or
reclamation of natural resources, the management, release or threatened release of any Hazardous
Substance or to health and safety matters.

“Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities),
directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous
Substance, (c) exposure to any Hazardous Substance, (d) the release or threatened release of any
Hazardous Substance into the environment or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

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

“ERISA Affiliate” means any corporation or trade or business which is a member of the
same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the
Company or is under common control (within the meaning of Section 414(c) of the Code) with the
Company.

“Eurodollar Advance” means an Advance consisting of Eurodollar Rate Loans.

“Eurodollar Rate” means, with respect to a Eurodollar Advance for the relevant
Interest Period, an interest rate per annum equal to the sum of (i) the quotient obtained by
dividing (a) the Base Eurodollar Rate applicable to such Interest Period by (b) one minus
the Reserve Requirement (expressed as a decimal) applicable to such Interest Period, plus
(ii) the Applicable Margin.

“Eurodollar Rate Loan” means a Loan which bears interest by reference to the
Eurodollar Rate.

“Event of Default” means an event described in Article IX.

“Excluded Taxes” means, in the case of each Bank, LC Issuer or applicable Lending
Installation and the Agent, taxes imposed on its overall net income, and franchise taxes imposed on
it, by (i) the jurisdiction under the laws of which such Bank, such LC Issuer or the Agent is
incorporated or organized or (ii) the jurisdiction in which the Agent’s, such LC Issuer’s or such
Bank’s principal executive office or such Bank’s or such LC Issuer’s applicable Lending
Installation is located.

“Existing Credit Agreement” means that certain Revolving Credit Agreement dated as of
September 11, 2008, among the Company, the financial institutions named as banks therein, Union
Bank, as the agent and as LC issuer, Barclays Bank PLC, The Royal Bank of Scotland plc and UBS Loan
Finance LLC, as co-syndication agents and Deutsche Bank Trust Company Americas, as documentation
agent, as amended, restated, supplemented or otherwise modified prior to the date hereof.

“Facility LC” – see Section 3.1.

“Facility LC Application” – see Section 3.3.

“Facility LC Collateral Account” means a special, interest-bearing account maintained
(pursuant to arrangements satisfactory to the Agent) at the Agent’s office at the address specified
pursuant to Article XIV, which account shall be in the name of the Company but under the
sole dominium and control of the Agent, for the benefit of the Banks.

“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to
the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published for such day
(or, if such day is not a Business Day, for the immediately 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 at approximately 11:00 a.m. (Los Angeles, California time) on such
day on such transactions received by the Agent from three Federal funds brokers of recognized
standing selected by the Agent in its sole discretion.

“First Mortgage Bonds” means bonds issued by the Company pursuant to the Indenture.

“Fitch” means Fitch Inc. or any successor thereto.

“Floating Rate” means, with respect to a Floating Rate Advance, an interest rate per
annum equal to (i) the Alternate Base Rate plus (ii) the Applicable Margin, changing when
and as the Alternate Base Rate or the Applicable Margin changes.

“Floating Rate Advance” means an Advance consisting of Floating Rate Loans.

“Floating Rate Loan” means a Loan which bears interest at the Floating Rate.

“FMB Release Date” means the date on which the Bonds are released pursuant to
Article XVI.

“FRB” means the Board of Governors of the Federal Reserve System or any successor
thereto.

“GAAP” means generally accepted accounting principles in the United States of America
as in effect on the Amendment Effective Date, applied on a basis consistent with those used in the
preparation of the financial statements referred to in Section 5.5 (except, for purposes of
the financial statements required to be delivered pursuant to Sections 6.7(b) and
(c), for changes concurred in by the Company’s independent public accountants).

“Hazardous Substance” means any waste, substance or material identified as hazardous,
dangerous or toxic by any office, agency, department, commission, board, bureau or instrumentality
of the United States or of the State or locality in which the same is located having or exercising
jurisdiction over such waste, substance or material.

“Hybrid Equity Securities” means securities issued by the Company or a Hybrid Equity
Securities Subsidiary that (i) are classified as possessing a minimum of at least two of the
following: (x) “intermediate equity content” by S&P; (y) “Basket C equity credit” by Moody’s; and
(z) “50% equity credit” by Fitch and (ii) require no repayment, prepayment, mandatory redemption or
mandatory repurchase prior to the date that is at least 91 days after the later of the termination
of the Commitments and the repayment in full of all Obligations.

“Hybrid Equity Securities Subsidiary” means any Delaware business trust (or similar
entity) (i) all of the common equity interest of which is owned (either directly or indirectly
through one or more wholly-owned Subsidiaries of the Company) at all times by the Company or a
wholly-owned direct or indirect Subsidiary of the Company, (ii) that has been formed for the
purpose of issuing Hybrid Equity Securities and (iii) substantially all of the assets of which
consist at all times solely of Junior Subordinated Debt issued by the Company or a wholly-owned
direct or indirect Subsidiary of the Company (as the case may be) and payments made from time to
time on such Junior Subordinated Debt.

“Hybrid Preferred Securities” means any preferred securities issued by a Hybrid
Preferred Securities Subsidiary, where such preferred securities have the following
characteristics:

(i) such Hybrid Preferred Securities Subsidiary lends substantially all of the proceeds
from the issuance of such preferred securities to the Company or a wholly-owned direct or
indirect Subsidiary of the Company in exchange for Junior Subordinated Debt issued by the
Company or such wholly-owned direct or indirect Subsidiary, respectively;

(ii) such preferred securities contain terms providing for the deferral of interest
payments corresponding to provisions providing for the deferral of interest payments on such
Junior Subordinated Debt; and

(iii) the Company or a wholly-owned direct or indirect Subsidiary of the Company (as
the case may be) makes periodic interest payments on such Junior Subordinated Debt, which
interest payments are in turn used by the Hybrid Preferred Securities Subsidiary to make
corresponding payments to the holders of the preferred securities.

“Hybrid Preferred Securities Subsidiary” means any Delaware business trust (or similar
entity) (i) all of the common equity interest of which is owned (either directly or indirectly
through one or more wholly-owned Subsidiaries of the Company) at all times by the Company or a
wholly-owned direct or indirect Subsidiary of the Company, (ii) that has been formed for the
purpose of issuing Hybrid Preferred Securities and (iii) substantially all of the assets of which
consist at all times solely of Junior Subordinated Debt issued by the Company or a wholly-owned
direct or indirect Subsidiary of the Company (as the case may be) and payments made from time to
time on such Junior Subordinated Debt.

“Indenture” means the Indenture, dated as of September 1, 1945, as supplemented and
amended from time to time, from the Company to The Bank of New York Mellon, as successor trustee.

“Interest Period” means, with respect to a Eurodollar Advance, a period of one, two,
three or six months, or such shorter period agreed to by the Company and the Banks, commencing on a
Business Day selected by the Company pursuant to this Agreement. Such Interest Period shall end on
the day which corresponds numerically to such date one, two, three or six months thereafter (or
such shorter period agreed to by the Company and the Banks); provided that if there is no
such numerically corresponding day in such next, second, third or sixth succeeding month (or such
shorter period, as applicable), such Interest Period shall end on the last Business Day of such
next, second, third or sixth succeeding month (or such shorter period, as applicable). If an
Interest Period would otherwise end on a day which is not a Business Day, such Interest Period
shall end on the next succeeding Business Day; provided that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on the immediately
preceding Business Day. The Company may not select any Interest Period that ends after the
scheduled Termination Date.

“Junior Subordinated Debt” means any unsecured Debt of the Company or a Subsidiary of
the Company that is (i) issued in exchange for the proceeds of Hybrid Equity Securities or Hybrid
Preferred Securities and (ii) subordinated to the rights of the Banks hereunder and under the other
Credit Documents pursuant to terms of subordination substantially similar to those set forth in
Exhibit D, or pursuant to other terms and conditions satisfactory to the Majority Banks.

“LC Fee” – see Section 3.4.

“LC Issuer” means any Bank designated by the Company that (i) agrees to be an issuer
of Facility LCs hereunder and (ii) is approved by the Agent (such approval not to be unreasonably
withheld or delayed).

“LC Obligations” means, at any time, the sum, without duplication, of (i) the
aggregate undrawn stated amount under all Facility LCs outstanding at such time plus (ii)
the aggregate unpaid amount at such time of all Reimbursement Obligations.

“LC Payment Date” – see Section 3.5.

“Lending Installation” means any office, branch, subsidiary or Affiliate of a Bank.

“Lien” means any lien (statutory or otherwise), security interest, mortgage, deed of
trust, priority, pledge, charge, conditional sale, title retention agreement, financing lease or
other encumbrance or similar right of others, or any agreement to give any of the foregoing.

“Loan” – see Section 2.1.

“Majority Banks” means, as of any date of determination, Banks in the aggregate having
more than 50% of the Aggregate Commitment as of such date or, if the Aggregate Commitment has been
terminated, Banks in the aggregate holding more than 50% of the aggregate unpaid principal amount
of the Aggregate Outstanding Credit Exposure as of such date.

“Material Adverse Change” means any event, development or circumstance that has had or
could reasonably be expected to have a material adverse effect on (a) the financial condition or
results of operations of the Company and its Consolidated Subsidiaries, taken as a whole, (b) the
Company’s ability to perform its obligations under any Credit Document or (c) the validity or
enforceability of any Credit Document or the rights or remedies of the Agent or the Banks
thereunder.

“Modify” and “Modification” – see Section 3.1.

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

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

“Net Proceeds” means, with respect to any sale or issuance of securities or incurrence
of Debt by any Person, the excess of (i) the gross cash proceeds received by or on behalf of such
Person in respect of such sale, issuance or incurrence (as the case may be) over (ii)
customary underwriting commissions, auditing and legal fees, printing costs, rating agency fees and
other customary and reasonable fees and expenses incurred by such Person in connection therewith.

“Net Worth” means, with respect to any Person, the excess of such Person’s total
assets over its total liabilities, total assets and total liabilities each to be determined
in accordance with GAAP consistently applied, excluding from the determination of total assets (i)
goodwill, organizational expenses, research and development expenses, trademarks, trade names,
copyrights, patents, patent applications, licenses and rights in any thereof, and other similar
intangibles, (ii) cash held in a sinking or other analogous fund established for the purpose of
redemption, retirement or prepayment of capital stock or Debt, and (iii) any item not included in
clause (i) or (ii) above, that is treated as an intangible asset in conformity with
GAAP.

“Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all Reimbursement Obligations, all accrued and unpaid fees and all other obligations of the
Company to the Banks or to any Bank, any LC Issuer or the Agent arising under the Credit Documents.

“Off-Balance Sheet Liability” of a Person means (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any
liability under any sale and leaseback transaction which is not a Capital Lease, (iii) any
liability under any so-called “synthetic lease” transaction entered into by such Person, or (iv)
any obligation arising with respect to any other transaction which is the functional equivalent of
or takes the place of borrowing but which does not constitute a liability on the balance sheet of
such Person, but excluding from this clause (iv) Operating Leases.

“Operating Lease” of a Person means any lease of Property (other than a Capital Lease)
by such Person as lessee.

“Original Closing Date” means September 11, 2008.

“Original Obligations” – see preamble.

“Other Taxes” – see Section 4.5(b).

“Outstanding Credit Exposure” means, as to any Bank at any time, the sum of (i) the
aggregate principal amount of its Loans outstanding at such time, plus (ii) an amount equal
to its Pro Rata Share of the LC Obligations at such time.

“Payment Date” means the second Business Day of each calendar quarter occurring after
the Amendment Effective Date.

“PBGC” means the Pension Benefit Guaranty Corporation and any entity succeeding to any
or all of its functions under ERISA.

“Person” means an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, governmental
authority or other entity of whatever nature.

“Plan” means any employee benefit plan (other than a Multiemployer Plan) maintained
for employees of the Company or any ERISA Affiliate and covered by Title IV of ERISA.

“Plan Termination Event” means (a) a Reportable Event described in Section 4043 of
ERISA and the regulations issued thereunder (other than a Reportable Event not subject to the
provision for 30-day notice to the PBGC under such regulations), (b) the withdrawal of the Company
or any ERISA Affiliate from a Plan during a plan year in which it was a “substantial employer” as
defined in Section 4001(a)(2) of ERISA, (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 or to appoint a trustee to administer
any Plan.

“Property” of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person.

“Proposal Letter” – see Section 13.12.

“Pro Rata Share” means, with respect to a Bank, a portion equal to (i) a fraction the
numerator of which is such Bank’s Commitment and the denominator of which is the Aggregate
Commitment and (ii) after the Commitments of all of the Banks have terminated, a fraction the
numerator of which is the Outstanding Credit Exposure for such Bank, and the denominator of which
is the Aggregate Outstanding Credit Exposure at such time; provided, that in the case of
Section 4.7(c)(i), when a Defaulting Bank shall exist the Commitment or Outstanding Credit
Exposure, as applicable, of such Defaulting Bank shall be disregarded when calculating such Bank’s
“Pro Rata Share”.

“Reference Rate” means the variable rate of interest per annum announced publicly by
Union Bank in its San Francisco, California office from time to time as its “reference rate”. Such
“reference rate” is set by Union Bank as a general reference rate of interest, taking into account
such factors as Union Bank may deem appropriate, it being understood that many of Union Bank’s
commercial or other loans are priced in relation to such rate, that it is not necessarily the
lowest or best rate actually charged to any customer and that Union Bank may make various
commercial or other loans at rates of interest having no relationship to such rate. For purposes
of this Agreement, each change in the Reference Rate shall be effective as of the opening of
business on the date announced as the effective date of any change in such “reference rate”.

“Regulation D” means Regulation D of the FRB from time to time in effect and shall
include any successor or other regulation or official interpretation of the FRB relating to reserve
requirements applicable to member banks of the Federal Reserve System.

“Regulation U” means Regulation U of the FRB from time to time in effect and shall
include any successor or other regulation or official interpretation of the FRB relating to the
extension of credit by banks, non-banks and non-broker-dealers for the purpose of purchasing or
carrying margin stocks.

“Reimbursement Obligations” means, at any time, the aggregate of all obligations of
the Company then outstanding under Article III to reimburse the applicable LC Issuer for
amounts paid by such LC Issuer in respect of any one or more drawings under Facility LCs issued by
such LC Issuer.

“Reportable Event” has the meaning assigned to that term in Title IV of ERISA.

“Reserve Requirement” means, with respect to an Interest Period, the maximum aggregate
reserve requirement (including all basic, supplemental, marginal and other reserves) which is
imposed under Regulation D on Eurocurrency liabilities.

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

“SEC” means the Securities and Exchange Commission or any governmental authority which
may be substituted therefor.

“Securitized Bonds” means nonrecourse bonds or similar asset-backed securities issued
by a special-purpose Subsidiary of the Company which are payable solely from specialized charges
authorized by the utility commission of the relevant state in connection with the recovery of (x)
stranded regulatory costs, (y) stranded clean air and pension costs and (z) other “Qualified Costs”
(as defined in M.C.L. §460.10h(g)) authorized to be securitized by the Michigan Public Service
Commission.

“Senior Debt” means the First Mortgage Bonds.

“Single Employer Plan” means a Plan maintained by the Company or any ERISA Affiliate
for employees of the Company or any ERISA Affiliate.

“Subsidiary” means, as to any Person, any corporation or other entity of which at
least a majority of the securities or other ownership interests having ordinary voting power
(absolutely or contingently) for the election of directors or other Persons performing similar
functions are at the time owned directly or indirectly by such Person. Unless otherwise specified,
all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Company.

“Supplemental Indenture” means that certain Supplemental Indenture, dated as of the
Original Closing Date, between the Company and The Bank of New York Mellon, as successor trustee,
as the same may be amended, restated, supplemented or otherwise modified from time to time.

“Taxes” means any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and any and all liabilities with respect to the foregoing, but
excluding Excluded Taxes and Other Taxes.

“Termination Date” means the earlier of (i) August 17, 2010 and (ii) the date on which
the Commitments are terminated.

“Total Consolidated Capitalization” means, at any date of determination, without
duplication, the sum of (a) Total Consolidated Debt plus all amounts excluded from Total
Consolidated Debt pursuant to clauses (ii), (iii), (iv), (vi) and
(vii) of the proviso to the definition of such term (but only, in the case of securities of
the type described in clause (iii) or (iv) of such proviso, to the extent such
securities have been deemed to be equity pursuant to Financial Accounting Standards Board Statement
No. 150), (b) equity of the common stockholders of the Company, (c) equity of the preference
stockholders of the Company and (d) equity of the preferred stockholders of the Company, in each
case determined at such date.

“Total Consolidated Debt” means, at any date of determination, the aggregate Debt of
the Company and its Consolidated Subsidiaries; provided that Total Consolidated Debt shall
exclude, without duplication, (i) the principal amount of any Securitized Bonds, (ii) any Junior
Subordinated Debt owned by any Hybrid Equity Securities Subsidiary or Hybrid Preferred Securities
Subsidiary, (iii) Hybrid Equity Securities or Hybrid Preferred Securities outstanding as of
December 31, 2002 (including any guaranty by the Company of payments with respect to such Hybrid
Equity Securities or Hybrid Preferred Securities, provided that such guaranty is
subordinated to the rights of the Banks hereunder and under the other Credit Documents pursuant to
terms of subordination substantially similar to those set forth in Exhibit E, or pursuant
to other terms and conditions satisfactory to the Majority Banks), (iv) such percentage of the Net
Proceeds from any issuance of hybrid debt/equity securities (other than Junior Subordinated Debt,
Hybrid Equity Securities and Hybrid Preferred Securities) by the Company or any Consolidated
Subsidiary as shall be agreed to be deemed equity by the Agent and the Company prior to the
issuance thereof (which determination shall be based on, among other things, the treatment (if any)
given to such securities by the applicable rating agencies), (v) if all or any portion of the
disposition of the Company’s Palisades Nuclear Plant is required to be accounted for as a financing
under GAAP rather than as a sale, the amount of liabilities reflected on the Company’s consolidated
balance sheet as the result of such disposition, (vi) obligations of the Company and its
Consolidated Subsidiaries of the type described in Section 1.3, (vii) Debt of any Affiliate
of the Company that is (1) consolidated on the financial statements of the Company solely as a
result of the effect and application of Financial Accounting Standards Board No. 46 and of
Accounting Research Bulletin No. 51, Consolidated Financial Statements, as modified by Statement of
Financial Accounting Standards No. 94, and (2) non-recourse to the Company or any of its Affiliates
(other than the primary obligor of such Debt and any of its Subsidiaries), (viii) Debt of the
Company and its Affiliates that is re-categorized as such from certain lease obligations pursuant
to Emerging Issues Task Force (“EITF”) Issue 01-8, any subsequent EITF Issue or
recommendation or other interpretation, bulletin or other similar document by the Financial
Accounting Standards Board on or related to such re-categorization and (ix) any non-cash
obligations resulting from the adoption of Financial Accounting Standards Board Statement No. 158
and any proposed amendment thereto, to the extent such obligations are required to be treated as
debt.

“Type” – see Section 2.4.

“Union Bank” means Union Bank, N.A. (formerly Union Bank of California, N.A.), in its
individual capacity, and its successors and assigns.

“Unused Commitment” means, at any time, the Aggregate Commitment then in effect
minus the Aggregate Outstanding Credit Exposure at such time.

“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272
(2001), as amended.

1.2 Interpretation.

(a) The foregoing definitions shall be equally applicable to both the singular and plural
forms of the defined terms.

(b) The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.”

(c) Unless otherwise specified, each reference to an Article, Section,
Exhibit and Schedule means an Article or Section of or an Exhibit or Schedule to
this Agreement.

1.3 Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP. If any changes in generally accepted accounting principles are
hereafter required or permitted and are adopted by the Company or any of its Subsidiaries, or the
Company or any of its Subsidiaries shall change its application of generally accepted accounting
principles with respect to any Off-Balance Sheet Liabilities (including the application of
Financial Accounting Standards Board Interpretation Nos. 45 and 46 and Financial Accounting
Standards Board Statement No. 150), in each case with the agreement of its independent certified
public accountants, and such changes result in a change in the method of calculation of any of the
financial covenants, tests, restrictions or standards herein or in the related definitions or terms
used therein (“Accounting Changes”), the parties hereto agree, at the Company’s request, to
enter into negotiations, in good faith, in order to amend such provisions in a credit neutral
manner so as to reflect equitably such changes with the desired result that the criteria for
evaluating the Company’s and its Subsidiaries’ financial condition shall be the same after such
changes as if such changes had not been made; provided that, until such provisions are
amended in a manner reasonably satisfactory to the Majority Banks, no Accounting Change shall be
given effect in such calculations. In the event such amendment is entered into, all references in
this Agreement to GAAP shall mean generally accepted accounting principles as of the date of such
amendment.

ARTICLE II

THE ADVANCES

2.1 Commitment. From and including the Amendment Effective Date and prior to the
Termination Date, each Bank severally agrees, on the terms and conditions set forth in this
Agreement, (a) to make loans to the Company from time to time (the “Loans”), and (b) to
participate in Facility LCs issued upon the request of the Company from time to time;
provided that, after giving effect to the making of each such Loan and the issuance of each
such Facility LC, such Bank’s Outstanding Credit Exposure shall not exceed its Commitment. In no
event may the Aggregate Outstanding Credit Exposure exceed the Available Commitment. Subject to
the terms and conditions of this Agreement, the Company may borrow, repay and reborrow at any time
prior to the Termination Date. The Commitments shall expire on the Termination Date.

2.2 Repayment. The Aggregate Outstanding Credit Exposure and all other unpaid
obligations of the Company hereunder shall be paid in full on the Termination Date.

2.3 Ratable Loans. Each Advance shall consist of Loans made by the several Banks
ratably according to their Pro Rata Shares.

2.4 Types of Advances. The Advances may be Floating Rate Advances or Eurodollar
Advances (each a “Type” of Advance), or a combination thereof, as selected by the Company
in accordance with Sections 2.8 and 2.9.

2.5 Fees and Changes in Commitments.

(a) The Company agrees to pay to the Agent for the account of each Bank according to its Pro
Rata Share a commitment fee (the “Commitment Fee”) at the Commitment Fee Rate on the daily
Unused Commitment from the Amendment Effective Date to but not including the date on which this
Agreement is terminated in full and all of the Obligations hereunder have been paid in full. The
Commitment Fee shall be payable quarterly in arrears on each Payment Date (for the quarter then
most recently ended), on the date of any reduction of the Aggregate Commitment pursuant to
clause (b) below and on the Termination Date (for the period then ended for which such fee
has not previously been paid) and shall be calculated for actual days elapsed on the basis of a 360
day year.

(b) The Company may permanently reduce the Aggregate Commitment in whole, or in part ratably
among the Banks in the minimum amount of $10,000,000 (and in multiples of $1,000,000 if in excess
thereof), upon at least five (5) Business Days’ prior written notice to the Agent, which notice
shall specify the amount of any such reduction; provided that the Aggregate Commitment may
not be reduced below the Aggregate Outstanding Credit Exposure. All accrued Commitment Fees shall
be payable on the effective date of any termination of the obligation of the Banks to make Credit
Extensions hereunder.

2.6 Minimum Amount of Advances. Each Advance shall be in the minimum amount of
$10,000,000 (and in integral multiples of $1,000,000 if in excess thereof); provided that
any Floating Rate Advance may be in the amount of the Available Aggregate Commitment (rounded down,
if necessary, to an integral multiple of $1,000,000).

2.7 Optional Principal Payments. The Company may from time to time prepay, without
penalty or premium, all outstanding Floating Rate Advances or, in a minimum aggregate amount of
$10,000,000 or a higher integral multiple of $1,000,000, any portion of the outstanding Floating
Rate Advances upon one (1) Business Day’s prior written notice to the Agent. The Company may from
time to time pay, subject to the payment of any funding indemnification amounts required by
Section 4.4 but without penalty or premium, all outstanding Eurodollar Advances or, in a
minimum aggregate amount of $10,000,000 or a higher integral multiple of $1,000,000, any portion of
any outstanding Eurodollar Advance upon three (3) Business Days’ prior written notice to the Agent;
provided that if, after giving effect to any such prepayment, the principal amount of any
Eurodollar Advance is less than $10,000,000, such Eurodollar Advance shall automatically convert
into a Floating Rate Advance.

2.8 Method of Selecting Types and Interest Periods for New Advances. The Company
shall select the Type of Advance and, in the case of each Eurodollar Advance, the Interest Period
applicable thereto from time to time. The Company shall give the Agent irrevocable notice (a
“Borrowing Notice”) not later than 10:00 a.m. (Los Angeles, California time) on the
Borrowing Date of each Floating Rate Advance and not later than 10:00 a.m. (Los Angeles, California
time) three (3) Business Days before the Borrowing Date for each Eurodollar Advance, specifying:

(i) the Borrowing Date, which shall be a Business Day;

(ii) the aggregate amount of such Advance;

(iii) the Type of Advance selected; and

(iv) in the case of each Eurodollar Advance, the initial Interest Period applicable
thereto.

Promptly after receipt thereof, the Agent will notify each Bank of the contents of each Borrowing
Notice. Not later than 12:00 noon (Los Angeles, California time) on each Borrowing Date, each Bank
shall make available its Loan in funds immediately available in Los Angeles, California to the
Agent at its address specified pursuant to Section 14.1. To the extent funds are received
from the Banks, the Agent will make such funds available to the Company at the Agent’s aforesaid
address. No Bank’s obligation to make any Loan shall be affected by any other Bank’s failure to
make any Loan.

2.9 Conversion and Continuation of Outstanding Advances. Floating Rate Advances shall
continue as Floating Rate Advances unless and until such Floating Rate Advances are converted into
Eurodollar Advances pursuant to this Section 2.9 or are repaid in accordance with
Section 2.2 or 2.7. Each Eurodollar Advance shall continue as a Eurodollar Advance
until the end of the then applicable Interest Period therefor, at which time such Eurodollar
Advance shall be automatically converted into a Floating Rate Advance unless (x) such Eurodollar
Advance is or was repaid in accordance with Section 2.2 or 2.7 or (y) the Company
shall have given the Agent a Conversion/Continuation Notice (as defined below) requesting that, at
the end of such Interest Period, such Eurodollar Advance continue as a Eurodollar Advance for the
same or another Interest Period. Subject to the terms of Section 2.6, the Company may
elect from time to time to convert all or any part of a Floating Rate Advance into a Eurodollar
Advance. The Company shall give the Agent irrevocable notice (a “Conversion/Continuation
Notice”) of each conversion of a Floating Rate Advance into a Eurodollar Advance or
continuation of a Eurodollar Advance not later than 10:00 a.m. (Los Angeles, California time) at
least three Business Days prior to the date of the requested conversion or continuation,
specifying:

(i) the requested date, which shall be a Business Day, of such conversion or
continuation;

(ii) the aggregate amount and Type of the Advance which is to be converted or
continued; and

(iii) the amount of the Advance which is to be converted into or continued as a
Eurodollar Advance and the duration of the Interest Period applicable thereto;

provided that no Advance may be continued as, or converted into, a Eurodollar Advance if
(x) such continuation or conversion would violate any provision of this Agreement or (y) a Default
or Event of Default exists.

2.10 Interest Rates, Interest Payment Dates. (a) Subject to Section 2.11,
each Advance shall bear interest as follows:

(i) at any time such Advance is a Floating Rate Advance, at a rate per annum equal to
the Floating Rate from time to time in effect; and

(ii) at any time such Advance is a Eurodollar Advance, at a rate per annum equal to the
Eurodollar Rate for each applicable Interest Period.

Changes in the rate of interest on that portion or any Advance maintained as a Floating Rate
Advance will take effect simultaneously with each change in the Floating Rate.

(b) Interest accrued on each Floating Rate Advance shall be payable on each Payment Date and
on the Termination Date. Interest accrued on each Eurodollar Advance shall be payable on the last
day of its applicable Interest Period, on any date on which such Eurodollar Advance is prepaid and
on the Termination Date. Interest accrued on each Eurodollar Advance having an Interest Period
longer than three months shall also be payable on the last day of each three-month interval during
such Interest Period. Interest on Eurodollar Advances, interest on Floating Rate Advances based on
the Federal Funds Effective Rate and the LC Fee shall be calculated for actual days elapsed on the
basis of a 360-day year. Interest on Floating Rate Advances based on the Reference Rate shall be
calculated for actual days elapsed on the basis of a 365- or 366-day year, as appropriate.
Interest on each Advance shall accrue from and including the date such Advance is made to but
excluding the date payment thereof is received in accordance with Section 2.12. If any
payment of principal of or interest on an Advance shall become due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day (unless, in the case of a
Eurodollar Advance, such next succeeding Business Day falls in a new calendar month, in which case
such payment shall be due on the immediately preceding Business Day) and, in the case of a
principal payment, such extension of time shall be included in computing interest in connection
with such payment.

2.11 Rate after Maturity. Any Advance not paid by the Company at maturity, whether by
acceleration or otherwise, shall bear interest until paid in full at a rate per annum equal to the
higher of (i) the rate otherwise applicable thereto plus 2.00% or (ii) the Floating Rate
plus 2.00%.

2.12 Method of Payment; Sharing Set-Offs. (a) All payments of principal, interest and
fees hereunder shall be made in immediately available funds to the Agent at its address specified
on its signature page to this Agreement (or at any other Lending Installation of the Agent
specified in writing by the Agent to the Company), without setoff or counterclaim, not later than
10:00 a.m. (Los Angeles, California time) on the date when due and shall (except in the case of
Reimbursement Obligations for which the applicable LC Issuer has not been fully indemnified by the
Banks, or as otherwise specifically required hereunder) be applied ratably by the Agent among the
Banks. Funds received after such time shall be deemed received on the following Business Day
unless the Agent shall have received from, or on behalf of, the Company a Federal Reserve reference
number with respect to such payment before 1:00 p.m. (Los Angeles, California time) on the date of
such payment. Each payment delivered to the Agent for the account of any Bank shall be delivered
promptly by the Agent in the same type of funds received by the Agent to such Bank at the address
specified for such Bank in its Administrative Questionnaire or at any Lending Installation
specified in a notice received by the Agent from such Bank. The Agent is hereby authorized to
charge the account of the Company maintained with Union Bank, if any, for each payment of
principal, interest, Reimbursement Obligations and fees as such payment becomes due hereunder.
Each reference to the Agent in this Section 2.12 shall also be deemed to refer, and shall
apply equally, to each LC Issuer, in the case of payments required to be made by the Company to
such LC Issuer pursuant to Section 3.6.

(b) If any Bank shall fail to make any payment required to be made by it pursuant to
Section 2.8, Section 2.15, Section 3.5 or Section 13.8, then the
Agent may, in its discretion and notwithstanding any contrary provision hereof, apply any amounts
thereafter received by the Agent for the account of such Bank and for the benefit of the Agent or
the LC Issuer to satisfy such Bank’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

2.13 Bonds; Record-keeping; Telephonic Notices.

(a) Pursuant to the terms of the Existing Credit Agreement, the obligation of the Company to
repay the Obligations are evidenced by one or more Bonds and may, pursuant to the terms hereunder
and at the request of any Bank following the FMB Release Date, be evidenced by a promissory note in
form and substance reasonably satisfactory to the Company, the Agent and such Bank.

(b) Each Bank shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Company to such Bank resulting from each Loan made by such Bank
from time to time, including the amounts of principal and interest payable and paid to such Bank
from time to time hereunder.

(c) The Agent shall also maintain accounts in which it will record (i) the amount of each Loan
made hereunder, the Type thereof and, if applicable, the Interest Period with respect thereto, (ii)
the amount of any principal or interest due and payable or to become due and payable from the
Company to each Bank hereunder, (iii) the original stated amount of each Facility LC and the amount
of LC Obligations outstanding at any time, and (iv) the amount of any sum received by the Agent
hereunder from the Company and each Bank’s share thereof.

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

(e) The Company hereby authorizes the Banks and the Agent to make Advances based on telephonic
notices made by any person or persons the Agent or any Bank in good faith believes to be acting on
behalf of the Company. The Company agrees to deliver promptly to the Agent a written confirmation
of each telephonic notice signed by a Designated Officer. If the written confirmation differs in
any material respect from the action taken by the Agent and the Banks, the records of the Agent and
the Banks shall govern absent manifest error.

2.14 Lending Installations. Subject to the provisions of Section 4.6, each
Bank may book its Loans and its participation in any LC Obligations and each LC Issuer may book the
Facility LCs issued by it at any Lending Installation selected by such Bank or such LC Issuer, as
the case may be, and may change its Lending Installation from time to time. All terms of this
Agreement shall apply to any such Lending Installation and the Loans shall be deemed held by the
applicable Bank for the benefit of such Lending Installation. Each Bank may, by written or
facsimile notice to the Company, designate a Lending Installation through which Loans will be made
by it or Facility LCs will be issued by it and for whose account payments on the Loans or payments
with respect to Facility LCs are to be made.

2.15 Non-Receipt of Funds by the Agent. Unless a Bank or the Company, as the case may
be, notifies the Agent prior to the date on which it is scheduled to make payment to the Agent of
(i) in the case of a Bank, the proceeds of a Loan or (ii) in the case of the Company, a payment of
principal, interest or fees to the Agent for the account of the Banks, that it does not intend to
make such payment, the Agent may assume that such payment has been made. The Agent may, but shall
not be obligated to, make the amount of such payment available to the intended recipient in
reliance upon such assumption. If such Bank or the Company, as the case may be, has not in fact
made such payment to the Agent, the recipient of such payment shall, on demand by the Agent, repay
to the Agent the amount so made available together with interest thereon in respect of each day
during the period commencing on the date such amount was so made available by the Agent until the
date the Agent recovers such amount at a rate per annum equal to (i) in the case of payment by a
Bank, the Federal Funds Rate for such day or (ii) in the case of payment by the Company, the
interest rate applicable to the relevant Loan.

ARTICLE III

LETTER OF CREDIT FACILITY

3.1 Issuance. Each LC Issuer hereby agrees, on the terms and conditions set forth in
this Agreement, to issue standby and commercial letters of credit denominated in U.S. dollars
(each, a “Facility LC”) and to renew, extend, increase, decrease or otherwise modify each
Facility LC (“Modify,” and each such action a “Modification”), from time to time
from and including the date hereof and prior to the Termination Date upon the request of the
Company; provided, however, that in no event shall (i) immediately after each such
Facility LC is issued or Modified, the Aggregate Outstanding Credit Exposure exceed the Available
Commitment, (ii) a Facility LC be issued or Modified unless each of the Banks consents, in its sole
and absolute discretion, to such issuance or Modification by providing written notice of such
consent to the Agent on or before the date of issuance or Modification (as the case may be) of such
Facility LC and (iii) a Facility LC (x) be issued later than 30 days prior to the scheduled
Termination Date, (y) have an expiry date later than the fifth Business Day (or, in the case of a
commercial Facility LC, the 30th day) prior to the scheduled Termination Date or (z)
provide for time drafts. For the avoidance of doubt, no Facility LC shall be issued hereunder nor
shall the LC Obligations at any time exceed $0 until the condition in clause (ii) above is
satisfied.

3.2 Participations. Upon the issuance or Modification by an LC Issuer of a Facility
LC in accordance with this Article III, such LC Issuer shall be deemed, without further
action by any party hereto, to have unconditionally and irrevocably sold to each Bank, and each
Bank shall be deemed, without further action by any party hereto, to have unconditionally and
irrevocably purchased from such LC Issuer, a participation in such Facility LC (and each
Modification thereof) and the related LC Obligations in proportion to its Pro Rata Share.

3.3 Notice. Subject to Section 3.1, the Company shall give the Agent and the
applicable LC Issuer notice prior to 10:00 a.m. (Los Angeles, California time) at least three
Business Days prior to the proposed date of issuance or Modification of each Facility LC,
specifying the beneficiary, the proposed date of issuance (or Modification) and the expiry date of
such Facility LC, and describing the proposed terms of such Facility LC and the nature of the
transactions proposed to be supported thereby. Upon receipt of such notice, the Agent shall
promptly notify each Bank, of the contents thereof and of the amount of such Bank’s participation
in such proposed Facility LC. Each Bank, shall within (2) Business Days following the date on
which it receives such notice from the Agent, notify the Agent whether such Bank consents to the
issuance or Modification of such Facility LC (which consent shall be in the sole and absolute
discretion of such Bank), it being understood and agreed that unless and until each Bank consents
in writing to such issuance or Modification, such Facility LC will not be issued or Modified by the
applicable LC Issuer. The issuance or Modification by an LC Issuer of any Facility LC shall, in
addition to the conditions precedent set forth in Article XI (the satisfaction of which
such LC Issuer shall have no duty to ascertain), be subject to the conditions precedent that such
Facility LC shall be satisfactory to such LC Issuer and that the Company shall have executed and
delivered such application agreement and/or such other instruments and agreements relating to such
Facility LC as such LC Issuer shall have reasonably requested (each, a “Facility LC
Application”). In the event of any conflict between the terms of this Agreement and the terms
of any Facility LC Application, the terms of this Agreement shall control.

3.4 LC Fees. The Company shall pay to the Agent, for the account of the Banks ratably
in accordance with their respective Pro Rata Shares, a letter of credit fee (the “LC Fee”)
at a per annum rate equal to the Applicable Margin for Eurodollar Rate Loans in effect from time to
time on the daily undrawn stated amount of each Facility LC, such fee to be payable in arrears on
each Payment Date and the Termination Date (and, if applicable, thereafter on demand). The Company
shall also pay to each LC Issuer for its own account (a) a fronting fee for each Facility LC at the
time and in the amount separately agreed by the Company and such LC Issuer, and (b) documentary and
processing charges in connection with the issuance or Modification of and draws under Facility LCs
in accordance with such LC Issuer’s standard schedule for such charges as in effect from time to
time.

3.5 Administration; Reimbursement by Banks. Upon receipt from the beneficiary of any
Facility LC of any demand for payment under such Facility LC, the applicable LC Issuer shall notify
the Agent and the Agent shall promptly notify the Company and each other Bank as to the amount to
be paid by such LC Issuer as a result of such demand and the proposed payment date (the “LC
Payment Date”). The responsibility of an LC Issuer to the Company and each Bank shall be only
to determine that the documents (including each demand for payment) delivered under each Facility
LC issued by such LC Issuer in connection with such presentment shall be in conformity in all
material respects with such Facility LC. Each LC Issuer shall endeavor to exercise the same care
in the issuance and administration of the Facility LCs as it does with respect to letters of credit
in which no participations are granted, it being understood that in the absence of any gross
negligence or willful misconduct by such LC Issuer, each Bank shall be unconditionally and
irrevocably liable without regard to the occurrence of any Default or any condition precedent
whatsoever, to reimburse such LC Issuer on demand for (i) such Bank’s Pro Rata Share of the amount
of each payment made by such LC Issuer under each Facility LC issued by it to the extent such
amount is not reimbursed by the Company pursuant to Section 3.6 below, plus (ii)
interest on the foregoing amount to be reimbursed by such Bank, for each day from the date of such
LC Issuer’s demand for such reimbursement (or, if such demand is made after 10:00 a.m. (Los
Angeles, California time) on such date, from the next succeeding Business Day) to the date on which
such Bank pays the amount to be reimbursed by it, at a rate of interest per annum equal to the
Federal Funds Effective Rate for the first three days and, thereafter, at a rate of interest equal
to the rate applicable to Floating Rate Advances.

3.6 Reimbursement by Company. The Company shall be irrevocably and unconditionally
obligated to reimburse the applicable LC Issuer on the applicable LC Payment Date for any amounts
to be paid by such LC Issuer upon any drawing under any Facility LC issued by it, without
presentment, demand, protest or other formalities of any kind; provided that neither the
Company nor any Bank shall hereby be precluded from asserting any claim for direct (but not
consequential) damages suffered by the Company or such Bank to the extent, but only to the extent,
caused by (i) the willful misconduct or gross negligence of such LC Issuer in determining whether a
request presented under any Facility LC issued by it complied with the terms of such Facility LC or
(ii) such LC Issuer’s failure to pay under any Facility LC issued by it after the presentation to
it of a request strictly complying with the terms and conditions of such Facility LC. All such
amounts paid by the applicable LC Issuer and remaining unpaid by the Company shall bear interest,
payable on demand, for each day until paid at a rate per annum equal to (x) the rate applicable to
Floating Rate Advances for such day if such day falls on or before the applicable LC Payment Date
and (y) the sum of 1.00% plus the rate applicable to Floating Rate Advances for such day if
such day falls after such LC Payment Date. The applicable LC Issuer will pay to each Bank ratably
in accordance with its Pro Rata Share all amounts received by such LC Issuer from the Company for
application in payment, in whole or in part, of the Reimbursement Obligation in respect of any
Facility LC issued by such LC Issuer, but only to the extent such Bank has made payment to such LC
Issuer in respect of such Facility LC pursuant to Section 3.5. Subject to the terms and
conditions of this Agreement (including the submission of a Borrowing Notice in compliance with
Section 2.8 and the satisfaction of the applicable conditions precedent set forth in
Article XI), the Company may request an Advance hereunder for the purpose of satisfying any
Reimbursement Obligation.

3.7 Obligations Absolute. The Company’s obligations under this Article III
shall be absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which the Company may have or have had against any LC Issuer,
any Bank or any beneficiary of a Facility LC. The Company further agrees with the LC Issuers and
the Banks that the LC Issuers and the Banks shall not be responsible for, and the Company’s
Reimbursement Obligation in respect of any Facility LC shall not be affected by, among other
things, the validity or genuineness of documents or of any endorsements thereon, even if such
documents should in fact prove to be in any or all respects invalid, fraudulent or forged, or any
dispute between or among the Company, any of its Affiliates, the beneficiary of any Facility LC or
any financing institution or other party to whom any Facility LC may be transferred or any claims
or defenses whatsoever of the Company or of any of its Affiliates against the beneficiary of any
Facility LC or any such transferee. No LC Issuer shall be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Facility LC. The Company agrees that any action taken or
omitted by any LC Issuer or any Bank under or in connection with a Facility LC and the related
drafts and documents, if done without gross negligence or willful misconduct, shall be binding upon
the Company and shall not put any LC Issuer or any Bank under any liability to the Company.
Nothing in this Section 3.7 is intended to limit the right of the Company to make a claim
against any LC Issuer for damages as contemplated by the proviso to the first sentence of
Section 3.6.

3.8 Actions of LC Issuers. Each LC Issuer shall be entitled to rely, and shall be
fully protected in relying, upon any Facility LC, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons, and upon advice and statements of legal
counsel, independent accountants and other experts selected by such LC Issuer. Each LC Issuer
shall be fully justified in failing or refusing to take any action under this Agreement unless it
shall first have received such advice or concurrence of the Majority Banks as it reasonably deems
appropriate or it shall first be indemnified to its reasonable satisfaction by the Banks against
any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. Notwithstanding any other provision of this Article III, each LC
Issuer shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement in accordance with a request of the Majority Banks, and such request and any action taken
or failure to act pursuant thereto shall be binding upon the Banks and any future holders of a
participation in any Facility LC.

3.9 Indemnification. The Company hereby agrees to indemnify and hold harmless each
Bank, each LC Issuer and the Agent, and their respective directors, officers, agents and employees
from and against any and all claims and damages, losses, liabilities, reasonable costs or expenses
which such Bank, such LC Issuer or the Agent may incur (or which may be claimed against such Bank,
such LC Issuer or the Agent by any Person whatsoever) by reason of or in connection with the
issuance, execution and delivery or transfer of or payment or failure to pay under any Facility LC
or any actual or proposed use of any Facility LC, including any claims, damages, losses,
liabilities, costs or expenses which any LC Issuer may incur by reason of or in connection with (i)
the failure of any other Bank to fulfill or comply with its obligations to such LC Issuer hereunder
(but nothing herein contained shall affect any rights the Company may have against any Defaulting
Bank) or (ii) by reason of or on account of such LC Issuer issuing any Facility LC which specifies
that the term “Beneficiary” included therein includes any successor by operation of law of the
named Beneficiary, but which Facility LC does not require that any drawing by any such successor
Beneficiary be accompanied by a copy of a legal document, satisfactory to such LC Issuer,
evidencing the appointment of such successor Beneficiary; provided that the Company shall
not be required to indemnify any Bank, any LC Issuer or the Agent for any claims, damages, losses,
liabilities, costs or expenses to the extent, but only to the extent, caused by (x) the willful
misconduct or gross negligence of any LC Issuer in determining whether a request presented under
any Facility LC issued by it complied with the terms of such Facility LC or (y) any LC Issuer’s
failure to pay under any Facility LC issued by it after the presentation to it of a request
strictly complying with the terms and conditions of such Facility LC. Nothing in this Section
3.9 is intended to limit the obligations of the Company under any other provision of this
Agreement.

3.10 Banks’ Indemnification. Each Bank shall, ratably in accordance with its Pro Rata
Share, indemnify each LC Issuer (in such LC Issuer’s capacity as an LC Issuer), its Affiliates and
their respective directors, officers, agents and employees (to the extent not reimbursed by the
Company) against any cost, expense (including reasonable counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from such indemnitees’ gross negligence or
willful misconduct or such LC Issuer’s failure to pay under any Facility LC issued by it after the
presentation to it of a request strictly complying with the terms and conditions of the Facility
LC) that such indemnitees may suffer or incur in connection with this Article III or any
action taken or omitted by such indemnitees hereunder (in such LC Issuer’s capacity as an LC
Issuer).

3.11 Rights as a Bank. In its capacity as a Bank, each LC Issuer shall have the same
rights and obligations as any other Bank.

ARTICLE IV

CHANGE IN CIRCUMSTANCES

4.1 Yield Protection.

(a) If any change in law or any governmental rule, regulation, policy, guideline or directive
(whether or not having the force of law), or any interpretation thereof by any agency or authority
having jurisdiction over any Bank or any LC Issuer,

(i) subjects any Bank, any LC Issuer or any applicable Lending Installation to any
increased tax, duty, charge or withholding on or from payments due from the Company
(excluding taxation measured by or attributable to the overall net income of such Bank, such
LC Issuer or such applicable Lending Installation, whether overall or in any geographic
area), or changes the rate of taxation of payments to any Bank or any LC Issuer in respect
of its Credit Extensions (including any participations in Facility LCs) or other amounts due
it hereunder, or

(ii) imposes or increases or deems applicable any reserve, assessment, insurance
charge, special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by any Bank, any LC Issuer or any applicable Lending
Installation (including any reserve costs under Regulation D with respect to Eurocurrency
liabilities (as defined in Regulation D)), or

(iii) imposes any other condition the result of which is to increase the cost to any
Bank, any LC Issuer or any applicable Lending Installation of making, funding or maintaining
Credit Extensions (including any participations in Facility LCs), or reduces any amount
receivable by any Bank, any LC Issuer or any applicable Lending Installation in connection
with Credit Extensions (including any participations in Facility LCs) or requires any Bank,
any LC Issuer or any applicable Lending Installation to make any payment calculated by
reference to its Outstanding Credit Exposure or interest received by it, by an amount deemed
material by such Bank or such LC Issuer, or

(iv) affects the amount of capital required or expected to be maintained by any Bank,
any LC Issuer or any applicable Lending Installation or any corporation controlling any Bank
or any LC Issuer and such Bank or such LC Issuer, as applicable, determines the amount of
capital required is increased by or based upon the existence of this Agreement or its
obligation to make Credit Extensions (including any participations in Facility LCs)
hereunder or of commitments of this type,

then, upon presentation by such Bank or such LC Issuer to the Company of a certificate (as referred
to in the immediately succeeding sentence of this Section 4.1) setting forth the basis for
such determination and the additional amounts reasonably determined by such Bank or such LC Issuer
for the period of up to ninety (90) days prior to the date on which such certificate is delivered
to the Company and the Agent, to be sufficient to compensate such Bank or such LC Issuer, as
applicable, in light of such circumstances, the Company shall within thirty (30) days of such
delivery of such certificate pay to the Agent for the account of such Bank or such LC Issuer, as
applicable, the specified amounts set forth on such certificate. The affected Bank or LC Issuer,
as applicable, shall deliver to the Company and the Agent a certificate setting forth the basis of
the claim and specifying in reasonable detail the calculation of such increased expense, which
certificate shall be prima facie evidence as to such increase and such amounts. An affected Bank
or LC Issuer, as applicable, may deliver more than one certificate to the Company during the term
of this Agreement. In making the determinations contemplated by the above-referenced certificate,
any Bank and any LC Issuer may make such reasonable estimates, assumptions, allocations and the
like that such Bank or such LC Issuer, as applicable, in good faith determines to be appropriate,
and such Bank’s or such LC Issuer’s selection thereof in accordance with this Section 4.1
shall be conclusive and binding on the Company, absent manifest error.

(b) No Bank or LC Issuer shall be entitled to demand compensation or be compensated hereunder
to the extent that such compensation relates to any period of time more than ninety (90) days prior
to the date upon which such Bank or such LC Issuer, as applicable, first notified the Company of
the occurrence of the event entitling such Bank or such LC Issuer, as applicable, to such
compensation (unless, and to the extent, that any such compensation so demanded shall relate to the
retroactive application of any event so notified to the Company).

4.2 Replacement of Banks.

(a) If any Bank shall make a demand for payment under Section 4.1, then within thirty
(30) days after such demand, the Company may, with the approval of the Agent and each LC Issuer
which has issued a Facility LC which is then outstanding or in respect of which there is any
unreimbursed Reimbursement Obligation (which approvals shall not be unreasonably withheld) and
provided that no Default or Event of Default shall then have occurred and be continuing, demand
that such Bank assign to one or more financial institutions designated by the Company and approved
by the Agent all (but not less than all) of such Bank’s Commitment and Outstanding Credit Exposure
within the period ending on the later of such 30th day and the last day of the longest
of the then current Interest Periods or maturity dates for such Outstanding Credit Exposure. Any
such assignment shall be consummated on terms satisfactory to the assigning Bank; provided
that such Bank’s consent to such assignment shall not be unreasonably withheld.

(b) If the Company shall elect to replace a Bank pursuant to clause (a) above, the
Company shall prepay the Outstanding Credit Exposure of such Bank, and the financial institution or
institutions selected by the Company shall replace such Bank as a Bank hereunder pursuant to an
instrument satisfactory to the Company, the Agent and the Bank being replaced by making Credit
Extensions to the Company in the amount of the Outstanding Credit Exposure of such assigning Bank
and assuming all the same rights and responsibilities hereunder as such assigning Bank and having
the same Commitment as such assigning Bank.

(c) If any Bank becomes a Defaulting Bank, then the Company may, at its sole expense and
effort, upon notice to such Bank and the Agent, require such Bank to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in Section 12.1),
all its interests, rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Bank, if such Bank accepts such assignment);
provided that (i) to the extent required pursuant to Section 12.1(c), the Company
shall have received the necessary consents from the Agent and the LC Issuer, if any, and (ii) such
Bank shall have received payment of an amount equal to its Outstanding Credit Exposure, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to
the extent of such Outstanding Credit Exposure and accrued interest and fees) or the Company (in
the case of all other amounts). A Bank shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Bank or otherwise, the circumstances
entitling the Company to require such assignment and delegation cease to apply.

4.3 Availability of Eurodollar Rate Loans. If:

(a) any Bank determines that maintenance of a Eurodollar Rate Loan at a suitable Lending
Installation would violate any applicable law, rule, regulation or directive, whether or not having
the force of law, or

(b) the Majority Banks determine that (i) deposits of a type and maturity appropriate to match
fund Eurodollar Rate Loans are not available or (ii) the Base Eurodollar Rate does not accurately
reflect the cost of making or maintaining a Eurodollar Rate Loan,

then the Agent shall suspend the availability of Eurodollar Rate Loans and, in the case of
clause (a), require any outstanding Eurodollar Rate Loans to be converted to Floating Rate
Loans on such date as is required by the applicable law, rule, regulation or directive.

4.4 Funding Indemnification. If any payment of a Eurodollar Rate Loan occurs on a
date which is not the last day of an applicable Interest Period, whether because of prepayment or
otherwise, or a Eurodollar Rate Loan is not made on the date specified by the Company for any
reason other than default by the Banks, the Company will indemnify each Bank for any loss or cost
(but not lost profits) incurred by it resulting therefrom, including any loss or cost in
liquidating or employing deposits acquired to fund or maintain such Eurodollar Rate Loan;
provided that the Company shall not be liable for any of the foregoing to the extent they
arise because of acceleration by any Bank.

4.5 Taxes.

(a) All payments by the Company to or for the account of any Bank, any LC Issuer or the Agent
hereunder or under any Bond or Facility LC Application shall be made free and clear of and without
deduction for any and all Taxes. If the Company shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder to any Bank, any LC Issuer or the Agent, (i) the sum
payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 4.5) such Bank, such LC
Issuer or the Agent (as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Company shall make such deductions, (iii) the Company
shall pay the full amount deducted to the relevant authority in accordance with applicable law and
(iv) the Company shall furnish to the Agent the original copy of a receipt evidencing payment
thereof within thirty (30) days after such payment is made.

(b) In addition, the Company hereby agrees to pay any present or future stamp or documentary
taxes and any other excise or property taxes, charges or similar levies which arise from any
payment made hereunder or under any Bond or Facility LC Application or from the execution or
delivery of, or otherwise with respect to, this Agreement or any Bond or Facility LC Application
(“Other Taxes”).

(c) The Company hereby agrees to indemnify the Agent, each LC Issuer and each Bank for the
full amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed on amounts payable
under this Section 4.5) paid by the Agent, such LC Issuer or such Bank and any liability
(including penalties, interest and expenses) arising therefrom or with respect thereto. Payments
due under this indemnification shall be made within thirty (30) days of the date the Agent, such LC
Issuer or such Bank makes demand therefor pursuant to Section 4.6.

(d) Each Bank that is not incorporated under the laws of the United States of America or a
state thereof (each a “Non-U.S. Bank”) agrees that it will, not more than ten (10) Business
Days after the Amendment Effective Date, or, if later, not more than ten (10) Business Days after
becoming a Bank hereunder, (i) deliver to each of the Company and the Agent two duly completed
copies of United States Internal Revenue Service Form W-8BEN or W-8ECI, certifying in either case
that such Bank is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, and (ii) deliver to each of the Company and
the Agent a United States Internal Revenue Form W-8 or W-9, as the case may be, and certify that it
is entitled to an exemption from United States backup withholding tax. Each Non-U.S. Bank further
undertakes to deliver to each of the Company and the Agent (x) renewals or additional copies of
such form (or any successor form) on or before the date that such form expires or becomes obsolete,
and (y) after the occurrence of any event requiring a change in the most recent forms so delivered
by it, such additional forms or amendments thereto as may be reasonably requested by the Company or
the Agent. All forms or amendments described in the preceding sentence shall certify that such
Bank is entitled to receive payments under this Agreement without deduction or withholding of any
United States federal income taxes, unless an event (including any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be required
which renders all such forms inapplicable or which would prevent such Bank from duly completing and
delivering any such form or amendment with respect to it and such Bank advises the Company and the
Agent that it is not capable of receiving payments without any deduction or withholding of United
States federal income tax.

(e) For any period during which a Non-U.S. Bank has failed to provide the Company with an
appropriate form pursuant to clause (d), above (unless such failure is due to a change in
treaty, law or regulation, or any change in the interpretation or administration thereof by any
governmental authority, occurring subsequent to the date on which a form originally was required to
be provided), such Non-U.S. Bank shall not be entitled to indemnification under this Section
4.5 with respect to Taxes imposed by the United States; provided that, should a
Non-U.S. Bank which is otherwise exempt from or subject to a reduced rate of withholding tax become
subject to Taxes because of its failure to deliver a form required under clause (d) above,
the Company shall take such steps as such Non-U.S. Bank shall reasonably request to assist such
Non-U.S. Bank to recover such Taxes.

(f) Any Bank that is entitled to an exemption from or reduction of withholding tax with
respect to payments under this Agreement or any Bond pursuant to the law of any relevant
jurisdiction or any treaty shall deliver to the Company (with a copy to the Agent), at the time or
times prescribed by applicable law, such properly completed and executed documentation prescribed
by applicable law as will permit such payments to be made without withholding or at a reduced rate.

(g) If the U.S. Internal Revenue Service or any other governmental authority of the United
States or any other country or any political subdivision thereof asserts a claim that the Agent did
not properly withhold tax from amounts paid to or for the account of any Bank (because the
appropriate form was not delivered or properly completed, because such Bank failed to notify the
Agent of a change in circumstances which rendered its exemption from withholding ineffective), such
Bank shall indemnify the Agent fully for all amounts paid, directly or indirectly, by the Agent as
tax, withholding therefor, or otherwise, including penalties and interest, and including taxes
imposed by any jurisdiction on amounts payable to the Agent under this clause (g), together
with all costs and expenses related thereto (including attorneys fees and time charges of attorneys
for the Agent, which attorneys may be employees of the Agent). The obligations of the Banks under
this clause (g) shall survive the payment of the Obligations and termination of this
Agreement.

4.6 Bank Certificates, Survival of Indemnity. To the extent reasonably possible, each
Bank shall designate an alternate Lending Installation with respect to Eurodollar Rate Loans to
reduce any liability of the Company to such Bank under Section 4.1 or to avoid the
unavailability of Eurodollar Rate Loans under Section 4.3, so long as such designation is
not disadvantageous to such Bank. A certificate of such Bank as to the amount due under
Section 4.1, 4.4 or 4.5 shall be final, conclusive and binding on the
Company in the absence of manifest error. Determination of amounts payable under such Sections in
connection with a Eurodollar Rate Loan shall be calculated as though each Bank funded each
Eurodollar Rate Loan through the purchase of a deposit of the type and maturity corresponding to
the deposit used as a reference in determining the Base Eurodollar Rate applicable to such Loan
whether in fact that is the case or not. Unless otherwise provided herein, the amount specified in
any certificate shall be payable on demand after receipt by the Company of such certificate. The
obligations of the Company under Sections 4.1, 4.4 and 4.5 shall survive
payment of the Obligations and termination of this Agreement; provided that no Bank shall
be entitled to compensation to the extent that such compensation relates to any period of time more
than ninety (90) days after the termination of this Agreement.

4.7 Defaulting Banks.

Notwithstanding any provision of this Agreement to the contrary, if any Bank becomes a
Defaulting Bank, then the following provisions shall apply for so long as such Bank is a Defaulting
Bank:

(a) such Defaulting Bank shall not be entitled to the Commitment Fee payable by the Company
pursuant to Section 2.5(a);

(b) the Commitment and Outstanding Credit Exposure of such Defaulting Bank shall not be
included in determining whether the Majority Banks have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 10.1, other than
those which require the consent of all Banks or of each affected Bank);

(c) if any LC Obligations exist at the time a Bank becomes a Defaulting Bank then:

(i) all or any part of such LC Obligation shall be reallocated among the non-Defaulting
Banks in accordance with their respective Pro Rata Share but only to the extent (x) the sum
of all non-Defaulting Banks’ Outstanding Credit Exposure does not exceed the total of all
non-Defaulting Banks’ Commitments, (y) no Bank’s Outstanding Credit Exposure shall exceed
its Commitment and (z) the conditions set forth in Section 11.2 are satisfied at
such time;

(ii) if the reallocation described in subclause (i) above cannot, or can only
partially, be effected, the Company shall within one (1) Business Day following notice by
the Agent, cash collateralize such Defaulting Bank’s Pro Rata Share of the LC Obligations
(after giving effect to any partial reallocation pursuant to subclause (i) above) in
accordance with the procedures set forth in Section 9.2 for so long as such LC
Obligation is outstanding;

(iii) if the Company cash collateralizes any portion of such Defaulting Bank’s Pro Rata
Share of the LC Obligations pursuant this clause (c), the Company shall not be
required to pay any fees to such Defaulting Bank pursuant to Section 3.4 with
respect to such Defaulting Bank’s Pro Rata Share of the LC Obligations during the period
such Defaulting Bank’s Pro Rata Share of the LC Obligations is cash collateralized;

(iv) if the non-Defaulting Banks’ Pro Rata Share of the LC Obligations is reallocated
pursuant to this clause (c), then the fees payable to the Banks pursuant to
Section 2.5(a) and Section 3.4 shall be adjusted in accordance with such
non-Defaulting Banks’ Pro Rata Shares; or

(v) if any Defaulting Bank’s Pro Rata Share of the LC Obligations is neither
reallocated nor cash collateralized pursuant to this clause (c), then, without
prejudice to any rights or remedies of any LC Issuer or any Bank hereunder, all fees that
otherwise would have been payable to such Defaulting Bank (solely with respect to the
portion of such Defaulting Bank’s Commitment that was utilized by such LC Obligations) and
LC Fees payable under Section 3.4 with respect to such Defaulting Bank’s Pro Rata
Share of the LC Obligations shall be payable to the applicable LC Issuer until such
Defaulting Bank’s Pro Rata Share of the LC Obligation is cash collateralized and/or
reallocated; and

(d) so long as any Bank is a Defaulting Bank, no LC Issuer shall be required to issue or
Modify any Facility LC, unless it is satisfied that the related exposure will be 100% covered by
the Commitments of the non-Defaulting Banks and/or cash collateral will be provided by the Company
in accordance with clause (c) above, and participating interests in any such newly issued
or Modified Facility LC shall be allocated among non-Defaulting Banks in a manner consistent with
clause(c)(i) above (and Defaulting Banks shall not participate therein).

(e) In the event that the Agent, the Company, and each LC Issuer each agrees that a Defaulting
Bank has adequately remedied all matters that caused such Bank to be a Defaulting Bank, then the
Banks’ Pro Rata Shares of the LC Obligations shall be readjusted to reflect the inclusion of such
Bank’s Commitment and on such date such Bank shall purchase at par such of the Loans of the other
Banks as the Agent shall determine may be necessary in order for such Bank to hold such Loans in
accordance with its Pro Rata Share of the Aggregate Commitment; provided, that if the
Company cash collateralized any portion of such Defaulting Bank’s Pro Rata Share of the LC
Obligations pursuant to Section 4.7(c), such cash shall be returned to the Company.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

The Company hereby represents and warrants that:

5.1 Incorporation and Good Standing. The Company is duly incorporated, validly
existing and in good standing under the laws of the State of Michigan.

5.2 Corporate Power and Authority: No Conflicts. The execution, delivery and
performance by the Company of the Credit Documents are within the Company’s corporate powers, have
been duly authorized by all necessary corporate action and do not (i) violate the Company’s
charter, bylaws or any applicable law, or (ii) breach or result in an event of default under any
indenture or material agreement, and do not result in or require the creation of any Lien upon or
with respect to any of its properties (except the Lien of the Indenture securing the Bonds and any
Lien in favor of the Agent on the Facility LC Collateral Account or any funds therein).

5.3 Governmental Approvals. 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 the Company of any Credit Document, except for the
authorization to issue, sell or guarantee secured and/or unsecured short-term debt granted by the
Federal Energy Regulatory Commission, which authorization has been obtained and is in full force
and effect.

5.4 Legally Enforceable Agreements. Each Credit Document constitutes a legal, valid
and binding obligation of the Company, enforceable in accordance with its terms, subject to (a) the
effect of applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (b) the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law).

5.5 Financial Statements. (a) The audited balance sheet of the Company and its
Consolidated Subsidiaries as at December 31, 2008, and the related statements of income and cash
flows of the Company and its Consolidated Subsidiaries for the fiscal year then ended, as set forth
in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (copies of
which have been furnished to each Bank), fairly present the financial condition of the Company and
its Consolidated Subsidiaries as at such date and the results of operations of the Company and its
Consolidated Subsidiaries for the fiscal year ended on such date, all in accordance with GAAP.

(b) The unaudited balance sheet of the Company and its Consolidated Subsidiaries as at June
30, 2009, and the related unaudited statements of income and cash flows of the Company and its
Consolidated Subsidiaries for the six-month period then ended, as set forth in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 (copies of which have been
furnished to each Bank), fairly present (subject to year-end audit adjustments) the financial
condition of the Company and its Consolidated Subsidiaries as at such date and the results of
operations of the Company and its Consolidated Subsidiaries for the six-month period ended on such
date, all in accordance with GAAP, and since December 31, 2008, there has been no Material Adverse
Change.

5.6 Litigation. Except (i) to the extent described in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2008 and Quarterly Report on Form 10-Q for the quarter
ended June 30, 2009, in each case as filed with the SEC, and (ii) such other similar actions, suits
and proceedings predicated on the occurrence of the same events giving rise to any actions, suits
and proceedings described in the reports referred to in the foregoing clause (i) (all
matters described in clauses (i) and (ii) above, the “Disclosed Matters”),
there is no pending or threatened action, suit, investigation or proceeding against the Company or
any of its Consolidated Subsidiaries before any court, governmental agency or arbitrator, which, if
adversely determined, might reasonably be expected to result in a Material Adverse Change. As of
the Amendment Effective Date, (a) there is no litigation challenging the validity or the
enforceability of any of the Credit Documents and (b) there have been no adverse developments with
respect to the Disclosed Matters that have resulted, or could reasonably be expected to result, in
a Material Adverse Change.

5.7 Margin Stock. The Company is not engaged in the business of extending credit for
the purpose of buying or carrying margin stock (within the meaning of Regulation U), and no
proceeds of any Credit Extension will be used to buy or carry any margin stock or to extend credit
to others for the purpose of buying or carrying any margin stock.

5.8 ERISA. No Plan Termination Event has occurred or is reasonably expected to occur
with respect to any Plan. Neither the Company nor any ERISA Affiliate is an employer under or has
any liability with respect to a Multiemployer Plan.

5.9 Insurance. All insurance required by Section 6.2 is in full force and
effect.

5.10 Taxes. The Company and its Subsidiaries have filed all tax returns (Federal,
state and local) required to be filed and paid all taxes shown thereon to be due, including
interest and penalties, or, to the extent the Company or any of its Subsidiaries is contesting in
good faith an assertion of liability based on such returns, has provided adequate reserves for
payment thereof in accordance with GAAP.

5.11 Investment Company Act. The Company is not an investment company (within the
meaning of the Investment Company Act of 1940, as amended).

5.12 Bonds. The issuance to the Agent of Bonds pursuant to the terms of the Existing
Credit Agreement as evidence of the Obligations (i) did not violate any provision of the Indenture
or any other agreement or instrument, or any law or regulation, or judicial or regulatory order,
judgment or decree, to which the Company or any of its Subsidiaries is a party or by which any of
the foregoing is bound and (ii) does, prior to the FMB Release Date, provide the Banks, as
beneficial holders of the Bonds through the Agent, the benefit of the Lien of the Indenture equally
and ratably with the holders of other First Mortgage Bonds.

5.13 Disclosure. The Company has not withheld any fact from the Agent or the Banks in
regard to the occurrence of a Material Adverse Change; and all financial information delivered by
the Company to the Agent and the Banks on and after the date of this Agreement is true and correct
in all material respects as at the dates and for the periods indicated therein.

5.14 OFAC. Neither the Company nor any Subsidiary or Affiliate of the Company is
named on the United States Department of the Treasury’s Specially Designated Nationals or Blocked
Persons list available through http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf or as
otherwise published from time.

5.15 Delivery of Documents. On or prior to the Amendment Effective Date, the Company
delivered, or caused to be delivered, true, accurate and complete copies of the Bond, the
Supplemental Indenture and the Bond Delivery Agreement, each as in effect as of the Amendment
Effective Date.

ARTICLE VI

AFFIRMATIVE COVENANTS

So long as any Obligations shall remain unpaid, any Facility LC shall remain outstanding or
any Bank shall have any Commitment under this Agreement, the Company shall:

6.1 Payment of Taxes, Etc. Pay and discharge, before the same shall become
delinquent, (a) all taxes, assessments and governmental charges or levies imposed upon it or upon
its property, and (b) all lawful claims which, if unpaid, might by law become a Lien upon its
property; provided that the Company shall not be required to pay or discharge any such tax,
assessment, charge or claim (i) which is being contested by it in good faith and by proper
procedures or (ii) the non-payment of which will not result in a Material Adverse Change.

6.2 Maintenance of Insurance. Maintain insurance in such amounts and covering such
risks with respect to its business and properties as is usually carried by companies engaged in
similar businesses and owning similar properties, either with reputable insurance companies or, in
whole or in part, by establishing reserves or one or more insurance funds, either alone or with
other corporations or associations.

6.3 Preservation of Corporate Existence, Etc. (a) Preserve and maintain its corporate
existence, rights and franchises, and (b) qualify and remain qualified as a foreign corporation in
each jurisdiction in which such qualification is necessary in view of its business and operations
or the ownership of its properties; provided that the Company shall not be required to
preserve any such right or franchise under clause (a) above or to remain so qualified under
clause (b) above unless the failure to do so would reasonably be expected to result in a
Material Adverse Change.

6.4 Compliance with Laws, Etc. Comply with the requirements of all applicable laws,
rules, regulations and orders of any governmental authority, the non-compliance of which would
reasonably be expected to result in a Material Adverse Change.

6.5 Visitation Rights. At any reasonable time and from time to time, permit the
Agent, any of the Banks or any agents or representatives thereof to examine and make copies of and
abstracts from its records and books of account, visit its properties and discuss its affairs,
finances and accounts with any of its officers.

6.6 Keeping of Books. Keep, and cause each Consolidated Subsidiary to keep, adequate
records and books of account, in which full and correct entries shall be made of all of its
financial transactions and its assets and business so as to permit the Company and its Consolidated
Subsidiaries to present financial statements in accordance with GAAP.

6.7 Reporting Requirements. Furnish to the Agent, with sufficient copies for each of
the Banks:

(a) as soon as practicable and in any event within five (5) Business Days after becoming aware
of the occurrence of any Default or Event of Default, a statement of a Designated Officer as to the
nature thereof, and as soon as practicable and in any event within five (5) Business Days
thereafter, a statement of a Designated Officer as to the action which the Company has taken, is
taking or proposes to take with respect thereto;

(b) as soon as available and in any event within sixty (60) days after the end of each of the
first three quarters of each fiscal year of the Company, a consolidated balance sheet of the
Company and its Consolidated Subsidiaries as at the end of such quarter, and the related
consolidated statements of income, cash flows and common stockholder’s equity of the Company and
its Consolidated Subsidiaries as at the end of and for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding date or period of the preceding
fiscal year, or statements providing substantially similar information (which requirement shall be
deemed satisfied by the delivery of the Company’s quarterly report on Form 10-Q for such quarter),
all in reasonable detail and duly certified (subject to the absence of footnotes and to year-end
audit adjustments) by a Designated Officer as having been prepared in accordance with GAAP,
together with (i) a certificate of a Designated Officer stating that such officer has no knowledge
(having made due inquiry with respect thereto) that a Default or Event of Default has occurred and
is continuing, or, if a Default or Event of Default has occurred and is continuing, a statement as
to the nature thereof and the actions which the Company has taken, is taking or proposes to take
with respect thereto, and (ii) a certificate of a Designated Officer, in substantially the form of
Exhibit B hereto, setting forth the Company’s computation of the financial ratio specified
in Article VIII as of the end of the immediately preceding fiscal quarter or year, as the
case may be, of the Company;

(c) as soon as available and in any event within 120 days after the end of each fiscal year of
the Company, a copy of the Company’s Annual Report on Form 10-K (or any successor form) for such
year, including therein the consolidated balance sheet of the Company and its Consolidated
Subsidiaries as at the end of such year and the consolidated statements of income, cash flows and
common stockholder’s equity of the Company and its Consolidated Subsidiaries as at the end of and
for such year, or statements providing substantially similar information, in each case certified by
independent public accountants of recognized national standing selected by the Company (and not
objected to by the Majority Banks), together with (i) a certificate of such accounting firm
addressed to the Banks stating that, in the course of its examination of the consolidated financial
statements of the Company and its Consolidated Subsidiaries, which examination was conducted by
such accounting firm in accordance with GAAP, (A) such accounting firm has obtained no knowledge
that an Event of Default, insofar as such Event of Default related to accounting or financial
matters, has occurred and is continuing, or if, in the opinion of such accounting firm, such an
Event of Default has occurred and is continuing, a statement as to the nature thereof, and (B) such
accounting firm has examined a certificate of a Designated Officer, in substantially the form of
Exhibit B setting forth the computations made by the Company in determining, as of the end
of such fiscal year, the ratio specified in Article VIII, which certificate shall be
attached to the certificate of such accounting firm, and such accounting firm confirms that such
computations accurately reflect such ratios, and (ii) a certificate of a Designated Officer stating
that such officer has no knowledge (having made due inquiry with respect thereto) that a Default or
Event of Default has occurred and is continuing, or, if a Default or Event of Default has occurred
and is continuing, a statement as to the nature thereof and the actions which the Company has
taken, is taking or proposes to take with respect thereto;

(d) promptly after the sending or filing thereof, copies of all proxy statements which the
Company sends to its stockholders, copies of all regular, periodic and special reports (other than
those which relate solely to employee benefit plans) which the Company files with the SEC and
notice of the sending or filing of (and, upon the request of the Agent or any Bank, a copy of) any
final prospectus filed with the SEC;

(e) as soon as possible and in any event (i) within thirty (30) days after the Company or any
ERISA Affiliate knows or has reason to know that any Plan Termination Event described in clause
(a) of the definition of Plan Termination Event with respect to any Plan has occurred and (ii)
within ten (10) days after the Company or any ERISA Affiliate knows or has reason to know that any
other Plan Termination Event with respect to any Plan has occurred, a statement of the Chief
Financial Officer of the Company describing such Plan Termination Event and the action, if any,
which the Company or such ERISA Affiliate, as the case may be, proposes to take with respect
thereto;

(f) promptly upon becoming aware thereof, notice of any upgrading or downgrading of the rating
of the Senior Debt by Moody’s, S&P or Fitch;

(g) as soon as possible and in any event within five (5) days after the occurrence of any
default under any agreement to which the Company or any of its Subsidiaries is a party, which
default would reasonably be expected to result in a Material Adverse Change, and which is
continuing on the date of such certificate, a certificate of the president or chief financial
officer of the Company setting forth the details of such default and the action which the Company
or any such Subsidiary proposes to take with respect thereto; and

(h) promptly, such other information respecting the business, properties or financial
condition of the Company as the Agent or any Bank through the Agent may from time to time
reasonably request.

6.8 Use of Proceeds. The Company will use the proceeds of the Credit Extensions for
general corporate purposes and working capital. The Company will not, nor will it permit any
Subsidiary to, use any of the proceeds of the Credit Extensions to purchase or carry any “margin
stock” (as defined in Regulation U).

6.9 Maintenance of Properties, Etc. The Company shall, and shall cause each of its
Subsidiaries to, maintain in all material respects all of its respective owned and leased Property
in good and safe condition and repair to the same degree as other companies engaged in similar
businesses and owning similar properties, and not permit, commit or suffer any waste or abandonment
of any such Property, and from time to time make or cause to be made all material repairs, renewals
and replacements thereof, including any capital improvements which may be required;
provided that such Property may be altered or renovated in the ordinary course of the
Company’s or its Subsidiaries’ business; and provided, further, that the foregoing
shall not restrict the sale of any asset of the Company or any Subsidiary to the extent not
prohibited by Section 7.2.

6.10 Bonds. The Company shall, until the earlier of (i) the FMB Release Date and (ii)
the date on which the Commitments and Facility LCs have terminated and all Obligations have been
paid in full, cause the face amount of all Bonds to at all times be equal to or greater than the
greater of (a) the Aggregate Commitment and (b) the Aggregate Outstanding Credit Exposure.

ARTICLE VII

NEGATIVE COVENANTS

So long as any Obligations shall remain unpaid, any Facility LC shall remain outstanding or
any Bank shall have any Commitment under this Agreement, the Company shall not:

7.1 Liens. Create, incur, assume or suffer to exist any Lien upon or with respect to
any of its properties, now owned or hereafter acquired, except:

(a) Liens created pursuant to the Indenture securing the First Mortgage Bonds and any Lien in
favor of the Agent on the Facility LC Collateral Account or any funds therein;

(b) Liens securing pollution control bonds, or bonds issued to refund or refinance pollution
control bonds (including Liens securing obligations (contingent or otherwise) of the Company under
letter of credit agreements or other reimbursement or similar credit enhancement agreements with
respect to pollution control bonds); provided that the aggregate face amount of any such
bonds so issued shall not exceed the aggregate face amount of such pollution control bonds, as the
case may be, so refunded or refinanced;

(c) Liens in (and only in) assets acquired to secure Debt incurred to finance the acquisition
of such assets;

(d) Statutory and common law banker’s Liens on bank deposits;

(e) Liens in respect of accounts receivable sold, transferred or assigned by the Company;

(f) Liens for taxes, assessments or other governmental charges or levies not at the time
delinquent or thereafter payable without penalty or being contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on
its books;

(g) Liens of carriers, warehousemen, mechanics, materialmen and landlords incurred in the
ordinary course of business for sums not overdue or being contested in good faith by appropriate
proceedings and for which adequate reserves shall have been set aside on its books;

(h) Liens incurred in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other forms of governmental insurance or benefits, or to
secure performance of tenders, statutory obligations, leases and contracts (other than for borrowed
money) entered into in the ordinary course of business or to secure obligations on surety or appeal
bonds;

(i) Judgment Liens in existence less than thirty (30) days after the entry thereof or with
respect to which execution has been stayed or the payment of which is covered (subject to a
customary deductible) by insurance;

(j) Zoning restrictions, easements, licenses, covenants, reservations, utility company rights,
restrictions on the use of real property or minor irregularities of title incident thereto which do
not in the aggregate materially detract from the value of the property or assets of the Company or
materially impair the operation of its business;

(k) Liens arising in connection with the financing of the Company’s fuel resources, including
nuclear fuel;

(l) Liens arising pursuant to M.C.L. 324.20138; provided that the aggregate amount of
all obligations secured by such Liens (excluding any such Liens of which the Company has no
knowledge or which are permitted by clause (f) above) shall not exceed $20,000,000;

(m) Liens arising in connection with Securitized Bonds;

(n) Liens on natural gas, oil and mineral, or on stock in trade, material or supplies
manufactured or acquired for the purpose of sale and or resale in the usual course of business or
consumable in the operation of any of the properties of the Company; provided that such
Liens secure obligations not exceeding $500,000,000 in aggregate principal amount; and

(o) Other Liens securing obligations in an aggregate amount not in excess of $500,000,000.

7.2 Sale of Assets. Sell, lease, assign, transfer or otherwise dispose of 25% or more
of its assets calculated with reference to total assets as reflected on the Company’s consolidated
balance sheet as at December 31, 2008, during the term of this Agreement.

7.3 Mergers, Etc. Merge with or into or consolidate with or into any other Person,
except that the Company may merge with any other Person; provided that, in each case,
immediately after giving effect thereto, (a) no event shall occur and be continuing which
constitutes a Default or Event of Default, (b) the Company is the surviving corporation, (c) the
Company shall not be liable with respect to any Debt or allow its Property to be subject to any
Lien which it could not become liable with respect to or allow its Property to become subject to
under this Agreement on the date of such transaction and (d) the Company’s Net Worth shall be equal
to or greater than its Net Worth immediately prior to such merger.

7.4 Compliance with ERISA. Permit to exist any occurrence of any Reportable Event, or
any other event or condition which presents a material (in the reasonable opinion of the Majority
Banks) risk of a termination by the PBGC of any Plan, which termination will result in any material
(in the reasonable opinion of the Majority Banks) liability of the Company or such ERISA Affiliate
to the PBGC.

7.5 Change in Nature of Business. Make any material change in the nature of its
business as carried on as of the Amendment Effective Date.

7.6 Off-Balance Sheet Liabilities. Create, incur, assume or suffer to exist, or
permit any Subsidiary to create, incur, assume or suffer to exist, Off-Balance Sheet Liabilities
(exclusive of obligations arising in connection with the Purchase Agreement among the Company,
Consumers Receivables Funding II, LLC, Falcon Asset Securitization Corporation and JPMorgan Chase
Bank, N.A., dated as of May 22, 2003, as amended, restated or otherwise modified from time to time
and any similar agreement entered into in replacement thereof) in the aggregate in excess of
$250,000,000 at any time.

7.7 Transactions with Affiliates. Enter into, or permit any Subsidiary to enter into,
any transaction with any of its Affiliates (other than the Company or any Subsidiary) unless such
transaction is on terms no less favorable to the Company or such Subsidiary than if the transaction
had been negotiated in good faith on an arm’s-length basis with a non-Affiliate; provided
that the foregoing shall not prohibit (a) the payment by the Company or any Subsidiary of dividends
or other distributions on, or redemptions of, its capital stock, (b) the purchase, acquisition or
retirement by the Company or any Subsidiary of the Company’s capital stock or (c) intercompany
loans and advances not otherwise prohibited by this Agreement.

ARTICLE VIII

FINANCIAL COVENANT

So long as any of the Obligations shall remain unpaid, any Facility LC shall remain
outstanding or any Bank shall have any Commitment under this Agreement, the Company shall at all
times maintain a ratio of Total Consolidated Debt to Total Consolidated Capitalization of not
greater than 0.70 to 1.0.

ARTICLE IX

EVENTS OF DEFAULT

9.1 Events of Default. The occurrence of any of the following events shall constitute
an “Event of Default”:

(a) The Company shall fail to pay (i) any principal of any Advance when due and payable, or
(ii) any Reimbursement Obligation within one (1) day after the same becomes due, or (iii) any
interest on any Advance or any fee or other Obligation payable hereunder within five (5) days
after such interest or fee or other Obligation becomes due and payable;

(b) Any representation or warranty made by the Company (or any of its officers) in this
Agreement or any other Credit Document or in any certificate, document, report, financial or other
written statement furnished at any time pursuant to any Credit Document shall prove to have been
incorrect in any material respect on or as of the date made or deemed made;

(c) (i) The Company shall fail to perform or observe any term, covenant or agreement contained
in Section 6.3(a) (solely with respect to the Company), Section 6.10, Article
VII or Article VIII; or (ii) the Company shall fail to perform or observe any other
term, covenant or agreement on its part to be performed or observed in this Agreement or in any
other Credit Document and such failure under this clause (ii) shall continue for thirty
(30) consecutive days after the earlier of (x) a Designated Officer obtaining knowledge of such
breach and (y) written notice thereof by means of facsimile, regular mail or written notice
delivered in person (or telephonic notice thereof confirmed in writing) having been given to the
Company by the Agent or the Majority Banks;

(d) The Company shall: (i) fail to pay any Debt (other than the payment obligations described
in clause (a) above) in excess of $50,000,000, or any 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 instrument or
agreement relating to such Debt; or (ii) fail to perform or observe any term, covenant or condition
on its part to be performed or observed under any agreement or instrument relating to any such
Debt, when required to be performed or observed, if the effect of such failure to perform or
observe is to accelerate, or to permit the acceleration of, the maturity of such Debt, unless the
obligee under or holder of such Debt shall have waived in writing such circumstance, or such
circumstance has been cured, so that such circumstance is no longer continuing; or (iii) any such
Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), in each case in accordance with the terms of such agreement or
instrument, prior to the stated maturity thereof; or (iv) generally not, or shall admit in writing
its inability to, pay its debts as such debts become due;

(e) The Company: (i) shall make an assignment for the benefit of creditors, or petition or
apply to any tribunal for the appointment of a custodian, receiver or trustee for it or a
substantial part of its assets; or (ii) shall commence any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect; or (iii) shall have had any such petition or
application filed or any such proceeding shall have been commenced, against it, in which an
adjudication or appointment is made or order for relief is entered, or which petition, application
or proceeding remains undismissed for a period of thirty (30) consecutive days or more; or (iv) by
any act or omission shall indicate its consent to, approval of or acquiescence in any such
petition, application or proceeding or order for relief or the appointment of a custodian, receiver
or trustee for all or any substantial part of its property; or (v) shall suffer any such
custodianship, receivership or trusteeship to continue undischarged for a period of thirty (30)
days or more; or (vi) shall take any corporate action to authorize any of the actions set forth
above in this clause (e);

(f) One or more judgments, decrees or orders for the payment of money in excess of $50,000,000
in the aggregate shall be rendered against the Company and either (i) enforcement proceedings shall
have been commenced by any creditor upon any such judgment or order or (ii) there shall be any
period of more than thirty (30) consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;

(g) Any Plan Termination Event with respect to a Plan shall have occurred, and thirty
(30) days after notice thereof shall have been given to the Company by the Agent, (i) such Plan
Termination Event (if correctable) shall not have been corrected and (ii) the then present value of
such Plan’s vested benefits exceeds the then current value of the assets accumulated in such Plan
by more than the amount of $25,000,000 (or in the case of a Plan Termination Event involving the
withdrawal of a “substantial employer” (as defined in Section 4001(A)(2) of ERISA), the withdrawing
employer’s proportionate share of such excess shall exceed such amount); or

(h) Prior to the FMB Release Date, (i) any Bond shall cease to be in full force and effect or
(ii) the Company shall deny that it has any liability or obligation under any Bond or purport to
revoke, terminate, rescind or redeem any Bond (other than in accordance with the terms of the Bonds
and the Indenture).

9.2 Remedies.

(a) If any Event of Default shall occur and be continuing, the Agent shall upon the request,
or may with the consent, of the Majority Banks, by notice to the Company, (i) declare the
Commitments and the obligations and powers of the LC Issuers to issue Facility LCs to be terminated
or suspended, whereupon the same shall forthwith terminate, and/or (ii) declare the Obligations to
be forthwith due and payable, whereupon the Aggregate Outstanding Credit Exposure and all other
Obligations shall become and be forthwith due and payable, and/or (iii) in addition to the
continuing right to demand payment of all amounts payable under this Agreement, make demand on the
Company to pay, and the Company will, forthwith upon such demand and without any further notice or
act, pay to the Agent the Collateral Shortfall Amount (as defined below), which funds shall be
deposited in the Facility LC Collateral Account, in each case without presentment, demand, protest
or further notice of any kind, all of which are hereby expressly waived by the Company;
provided that in the case of an Event of Default referred to in Section 9.1(e), the
Commitments shall automatically terminate, the obligations and powers of the LC Issuers to issue
Facility LCs shall automatically terminate and the Obligations shall automatically become due and
payable without notice, presentment, demand, protest or other formalities of any kind, all of which
are hereby expressly waived by the Company, and the Company will be and become thereby
unconditionally obligated, without any further notice, act or demand, to pay to the Agent an amount
in immediately available funds, which funds shall be held in the Facility LC Collateral Account,
equal to the difference of (x) the amount of LC Obligations at such time, less (y) the
amount on deposit in the Facility LC Collateral Account at such time which is free and clear of all
rights and claims of third parties and has not been applied against the Obligations (such
difference, the “Collateral Shortfall Amount”).

(b) If at any time while any Event of Default is continuing, the Agent determines that the
Collateral Shortfall Amount at such time is greater than zero, the Agent may make demand on the
Company to pay, and the Company will, forthwith upon such demand and without any further notice or
act, pay to the Agent the Collateral Shortfall Amount, which funds shall be deposited in the
Facility LC Collateral Account.

(c) The Agent may, at any time or from time to time after funds are deposited in the Facility
LC Collateral Account, apply such funds to the payment of the Obligations and any other amounts as
shall from time to time have become due and payable by the Company to the Banks or the LC Issuers
under the Credit Documents. The Company hereby pledges, assigns and grants to the Agent, on behalf
of and for the ratable benefit of the Banks and the LC Issuers, a security interest in all of the
Company’s right, title and interest in and to all funds which may from time to time be on deposit
in the Facility LC Collateral Account to secure the prompt and complete payment and performance of
the Obligations. The Agent will invest any funds on deposit from time to time in the Facility LC
Collateral Account in certificates of deposit of Union Bank having a maturity not exceeding thirty
(30) days.

(d) At any time while any Event of Default is continuing, neither the Company nor any Person
claiming on behalf of or through the Company shall have any right to withdraw any of the funds held
in the Facility LC Collateral Account. After all of the Obligations have been indefeasibly paid in
full, all Facility LCs have expired or been terminated and the Aggregate Commitment has been
terminated, any funds remaining in the Facility LC Collateral Account shall be returned by the
Agent to the Company or paid to whomever may be legally entitled thereto at such time.

ARTICLE X

WAIVERS, AMENDMENTS AND REMEDIES

10.1 Amendments. Subject to the provisions of this Article X, the Majority
Banks (or the Agent with the consent in writing of the Majority Banks) and the Company may enter
into written agreements supplemental hereto for the purpose of adding or modifying any provisions
to the Credit Documents (other than the Proposal Letter, which may be amended or otherwise modified
solely with the consent of the parties thereto) or changing in any manner the rights of the Banks
or the Company hereunder or waiving any Event of Default hereunder; provided that no such
supplemental agreement shall, without the consent of all of the Banks:

(a) Extend the maturity of any Loan or reduce the principal amount thereof, or extend the
expiry date of any Facility LC to a date after the scheduled Termination Date, or reduce the rate
or extend the time of payment of interest thereon or fees thereon or Reimbursement Obligations
related thereto.

(b) Modify the percentage specified in the definition of Majority Banks.

(c) Extend the Termination Date or increase the amount of the Commitment of any Bank hereunder
or the commitment to issue Facility LCs, or permit the Company to assign its rights under this
Agreement.

(d) Amend Section 3.1, Section 6.10, this Section 10.1 or Section
12.11.

(e) Make any change in an express right in this Agreement of a single Bank to give its
consent, make a request or give a notice.

(f) Authorize the Agent to vote in favor of the release of all or substantially all of the
collateral securing the Bonds.

(g) Except as provided in Article XVI, release all or any substantial portion of the
Bonds.

(h) Amend any provisions hereunder relating to the pro rata treatment of the Banks.

No amendment of any provision of this Agreement relating to the Agent shall be effective without
the written consent of the Agent, and no amendment of any provision relating to any LC Issuer shall
be effective without the written consent of such LC Issuer. Notwithstanding the foregoing, no
amendment to Section 4.7 shall be effective unless the same shall be in writing and signed
by the Agent, the LC Issuer, if applicable, and the Majority Banks.

10.2 Preservation of Rights. No delay or omission of the Banks, the LC Issuers or the
Agent to exercise any right under the Credit Documents shall impair such right or be construed to
be a waiver of any Default or Event of Default or an acquiescence therein, and the making of a
Credit Extension notwithstanding the existence of a Default or Event of Default or the inability of
the Company to satisfy the conditions precedent to such Credit Extension shall not constitute any
waiver or acquiescence. Any single or partial exercise of any such right shall not preclude other
or further exercise thereof or the exercise of any other right, and no waiver, amendment or other
variation of the terms, conditions or provisions of the Credit Documents whatsoever shall be valid
unless in writing signed by the Banks required pursuant to Section 10.1, and then only to
the extent in such writing specifically set forth. All remedies contained in the Credit Documents
or by law afforded shall be cumulative and all shall be available to the Agent, the LC Issuers and
the Banks until the Obligations have been paid in full.

ARTICLE XI

CONDITIONS PRECEDENT

11.1 Effectiveness of this Agreement. This Agreement shall not become effective
unless the Company has furnished to the Agent with sufficient copies for the Banks:

(a) Counterparts of this Agreement executed by the Company and the Banks.

(b) Copies of the Restated Articles of Incorporation of the Company, together with all
amendments, certified by the Secretary or an Assistant Secretary of the Company, and a certificate
of good standing, certified by the appropriate governmental officer in its jurisdiction of
incorporation.

(c) Copies, certified by the Secretary or an Assistant Secretary of the Company, of its
by-laws and of its Board of Directors’ resolutions (and resolutions of other bodies, if any are
deemed necessary by counsel for any Bank) authorizing the execution of the Credit Documents.

(d) An incumbency certificate, executed by the Secretary or an Assistant Secretary of the
Company, which shall identify by name and title and bear the original or facsimile signature of the
officers of the Company authorized to sign the Credit Documents and the officers or other employees
authorized to make borrowings hereunder, upon which certificate the Banks shall be entitled to rely
until informed of any change in writing by the Company.

(e) A certificate, signed by a Designated Officer of the Company, stating that on the
Amendment Effective Date (i) no Default or Event of Default has occurred and is continuing and (ii)
each representation or warranty contained in Article V is true and correct.

(f) A favorable opinion of James E. Brunner, Esq., General Counsel of the Company, as to the
matters set forth in Exhibit A and as to such other matters as the Agent may reasonably
request. Such opinion shall be addressed to the Agent, the LC Issuers and the Banks and shall be
satisfactory in form and substance to the Agent.

(g) Evidence, in form and substance satisfactory to the Agent, that the Company has obtained
all governmental approvals, if any, necessary for it to enter into the Credit Documents.

(h) Such other documents as any Bank or its counsel may have reasonably requested. It shall
be a further condition precedent to the effectiveness of this Agreement that the Company shall have
paid (i) to the Agent for the ratable account of the Banks then parties to the Existing Credit
Agreement, all accrued and unpaid “Commitment Fees” and other “Obligations” (as such terms are
defined in the Existing Credit Agreement immediately prior to the Amendment Effective Date) to but
not including the Amendment Effective Date and all other expenses required to be paid on the
Amendment Effective Date and (ii) to the Agent and the Arranger the fees required to be paid to
them pursuant to the Proposal Letter.

11.2 Each Credit Extension. The Banks shall not be required to make any Credit
Extension if on the applicable Borrowing Date, (i) any Default or Event of Default exists or would
result from such Credit Extension, (ii) any representation or warranty contained in Article
V is not true and correct as of such Borrowing Date, (iii) prior to the FMB Release Date, after
giving effect to such Credit Extension the Aggregate Outstanding Credit Exposure would exceed the
face amount of all Bonds or (iv) all legal matters incident to the making of such Credit Extension
are not satisfactory to the Banks and their counsel; provided that, on any date following
the Amendment Effective Date on which the ratings of the Senior Debt from Moody’s and S&P are Baa2
or higher and BBB or higher, respectively, the Company shall not be required to make the
representation and warranty (x) regarding no Material Adverse Change set forth in Section
5.5 or (y) set forth in the first sentence of Section 5.6. Each Borrowing Notice and
each request for issuance of a Facility LC shall constitute a representation and warranty by the
Company that the conditions contained in clauses (i), (ii) and (iii) above
will be satisfied on the relevant Borrowing Date. For the avoidance of doubt, the conversion or
continuation of an Advance shall not be considered the making of a Credit Extension.

ARTICLE XII

GENERAL PROVISIONS

12.1 Successors and Assigns. (a) The terms and provisions of the Credit Documents
shall be binding upon and inure to the benefit of the Company and the Banks and their respective
successors and assigns, except that the Company shall not have the right to assign its rights under
the Credit Documents. Any Bank may sell participations in all or a portion of its rights and
obligations under this Agreement pursuant to clause (b) below and any Bank may assign all
or any part of its rights and obligations under this Agreement pursuant to clause (c)
below.

(b) Any Bank may sell participations to one or more banks or other entities (other than the
Company and its Affiliates) (each a “Participant”) in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and its Outstanding
Credit Exposure); provided that (i) such Bank’s obligations under this Agreement (including
its Commitment to the Company hereunder) shall remain unchanged, (ii) such Bank shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) such Bank
shall remain the holder of the Outstanding Credit Exposure of such Bank for all purposes of this
Agreement and (iv) the Company shall continue to deal solely and directly with such Bank in
connection with such Bank’s rights and obligations under this Agreement. Each Bank shall retain
the sole right to approve, without the consent of any Participant, any amendment, modification or
waiver of any provision of the Credit Documents other than any amendment, modification or waiver
with respect to any Loan or Commitment in which such Participant has an interest which would
require consent of all of the Banks pursuant to the terms of Section 10.1 or of any other
Credit Document. The Company agrees that each Participant shall be deemed to have the right of
setoff provided in Section 12.10 in respect of its participating interest in amounts owing
under the Credit Documents to the same extent as if the amount of its participating interest were
owing directly to it as a Bank under the Credit Documents; provided that each Bank shall
retain the right of setoff provided in Section 12.10 with respect to the amount of
participating interests sold to each Participant. The Banks agree to share with each Participant,
and each Participant, by exercising the right of setoff provided in Section 12.10, agrees
to share with each Bank, any amount received pursuant to the exercise of its right of setoff, such
amounts to be shared in accordance with Section 12.11 as if each Participant were a Bank.
The Company further agrees that each Participant shall be entitled to the benefits of Sections
4.1, 4.3, 4.4 and 4.5 to the same extent as if it were a Bank and had
acquired its interest by assignment pursuant to Section 12.1(c); provided that (i)
a Participant shall not be entitled to receive any greater payment under Section 4.1,
4.3, 4.4 or 4.5 than the Bank that sold the participating interest to such
Participant would have received had it retained such interest for its own account, unless the sale
of such interest to such Participant is made with the prior written consent of the Company, and
(ii) any Participant not incorporated under the laws of the United States of America or any State
thereof agrees to comply with the provisions of Section 4.5 to the same extent as if it
were a Bank.

(c) Any Bank may, in the ordinary course of its business and in accordance with applicable
law, at any time assign to one or more financial institutions or other Persons (other than the
Company and its Affiliates) all or any part of its rights and obligations under this Agreement;
provided that (i) unless such assignment is to another Bank, an Affiliate of such assigning
Bank, or any direct or indirect contractual counterparty in any swap agreement relating to the
Loans to the extent required in connection with the settlement of such Bank’s obligations pursuant
thereto, such Bank has received the prior written consent of the Agent, the Company (so long as no
Event of Default exists) and each LC Issuer, which consents of the Agent, the Company and the LC
Issuers shall not be unreasonably withheld or delayed, and (ii) the minimum principal amount of any
such assignment (other than assignments to a Federal Reserve Bank, to another Bank, to an Affiliate
of such assigning Bank or any direct or indirect contractual counterparty in any swap agreement
relating to the Loans to the extent required in connection with the settlement of such Bank’s
obligations pursuant thereto) shall be $5,000,000 (or such lesser amount consented to by the Agent
and, so long as no Event of Default shall be continuing, the Company, which consents shall not be
unreasonably withheld or delayed); provided that after giving effect to such assignment the
assigning Bank shall have a Commitment of not less than $5,000,000 (unless otherwise consented to
by the Agent and, so long as no Event of Default shall be continuing, the Company), unless such
assignment constitutes an assignment of all of the assigning Bank’s Commitment, Loans and other
rights and obligations hereunder to a single assignee. Notwithstanding the foregoing sentence, (x)
any Bank may at any time, without the consent of the Company, any LC Issuer or the Agent, pledge or
assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Bank, including, without limitation, any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such assignment shall release the
transferor Bank from its obligations hereunder or substitute any such pledgee or assignee for such
Bank as a party hereto; and (y) no assignment by a Bank to any Affiliate of such Bank shall release
such Bank from its obligations hereunder unless (I) the Agent and, so long as no Event of Default
exists, the Company have approved such assignment or (II) the creditworthiness of such Affiliate
(as determined in accordance with customary standards of the banking industry) is no less than that
of the assigning Bank.

(d) Any Bank may, in connection with any sale or participation or proposed sale or
participation pursuant to this Section 12.1, disclose to the purchaser or participant or
proposed purchaser or participant any information relating to the Company furnished to such Bank by
or on behalf of the Company; provided that prior to any such disclosure of non-public
information, the purchaser or participant or proposed purchaser or participant (which purchaser or
participant is not an Affiliate of a Bank) shall agree to preserve the confidentiality of any
confidential information (except any such disclosure as may be required by law or regulatory
process) relating to the Company received by it from such Bank.

(e) Assignments under this Section 12.1 shall be made pursuant to an agreement (an
“Assignment Agreement”) substantially in the form of Exhibit C hereto or in such
other form as may be agreed to by the parties thereto and shall not be effective until a $3,500 fee
has been paid to the Agent by the assignee, which fee shall cover the cost of processing such
assignment; provided that such fee shall not be incurred in the event of an assignment by
any Bank of all or a portion of its rights under this Agreement to (i) a Federal Reserve Bank, (ii)
a Bank or an Affiliate of the assigning Bank or (iii) any direct or indirect contractual
counterparty in any swap agreement relating to the Loans to the extent required in connection with
the settlement of such Bank’s obligations pursuant thereto.

12.2 Survival of Representations. All representations and warranties of the Company
contained in this Agreement shall survive the making of the Credit Extensions herein contemplated.

12.3 Governmental Regulation. Anything contained in this Agreement to the contrary
notwithstanding, no LC Issuer or Bank shall be obligated to extend credit to the Company in
violation of any limitation or prohibition provided by any applicable statute or regulation.

12.4 Taxes. Any taxes (excluding income taxes) payable or ruled payable by any
Federal or State authority in respect of the execution of the Credit Documents shall be paid by the
Company, together with interest and penalties, if any.

12.5 Choice of Law. THE CREDIT DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF NEW
YORK, BUT OTHERWISE WITHOUT REGARD TO THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK, BUT GIVING
EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. THE COMPANY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW
YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY CREDIT DOCUMENT AND
THE COMPANY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN ANY SUCH COURT. EACH OF THE COMPANY, THE AGENT, THE LC ISSUERS AND
THE BANKS HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN ANY ACTION OR ARISING HEREUNDER OR UNDER ANY
CREDIT DOCUMENT.

12.6 Headings. Section headings in the Credit Documents are for convenience of
reference only, and shall not govern the interpretation of any of the provisions of the Credit
Documents.

12.7 Entire Agreement. The Credit Documents embody the entire agreement and
understanding between the Company, the LC Issuers, the Agent and the Banks and supersede all prior
agreements and understandings between the Company, the LC Issuers, the Agent and the Banks relating
to the subject matter thereof.

12.8 Expenses; Indemnification. The Company shall reimburse the Agent and the
Arranger for (a) any reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys’ fees, time charges and expenses of counsel for the Agent) paid or incurred by
the Agent or the Arranger in connection with the preparation, review, execution, delivery,
syndication, distribution (including via the internet), administration, amendment and modification
of the Credit Documents and (b) any reasonable costs, internal charges and out-of-pocket expenses
(including reasonable attorneys’ fees, time charges and expenses of counsel) paid or incurred by
the Agent or the Arranger on its own behalf or on behalf of any LC Issuer or any Bank and, on or
after the date upon which an Event of Default specified in Section 9.1(a) or 9.1(e)
has occurred and is continuing, each Bank, in connection with the collection and enforcement of the
Credit Documents. The Company further agrees to indemnify the Agent, the Arranger, each LC Issuer,
each Bank and their respective Affiliates, and the directors, officers, employees and agents of the
foregoing (all of the foregoing, the “Indemnified Persons), against all losses, claims,
damages, penalties, judgments, liabilities and reasonable expenses (including all reasonable
expenses of litigation or preparation therefor whether or not an Indemnified Person is a party
thereto) which any of them may pay or incur arising out of or relating to this Agreement, the other
Credit Documents, the transactions contemplated hereby, the direct or indirect application or
proposed application of the proceeds of any Credit Extension hereunder, any actual or alleged
presence or release of any Hazardous Substance on or from any property owned or operated by the
Company or any Subsidiary or any Environmental Liability related in any way to the Company or any
Subsidiary; provided that the Company shall not be liable to any Indemnified Person for any
of the foregoing to the extent they arise from the gross negligence or willful misconduct of such
Indemnified Person. Without limiting the foregoing, the Company shall pay any civil penalty or
fine assessed by the Office of Foreign Assets Control against any Indemnified Person, and all
reasonable costs and expenses (including reasonable fees and expenses of counsel to such
Indemnified Person) incurred in connection with defense thereof, as a result of any breach or
inaccuracy of the representation made in Section 5.14. The obligations of the Company
under this Section shall survive the termination of this Agreement.

12.9 Severability of Provisions. Any provision in any Credit Document that is held to
be inoperative, unenforceable or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability or validity of that provision in any other
jurisdiction, and to this end the provisions of all Credit Documents are declared to be severable.

12.10 Setoff. In addition to, and without limitation of, any rights of the Banks
under applicable law, if the Company becomes insolvent, however evidenced, or any Default or Event
of Default occurs, any indebtedness from any Bank or any of its Affiliates to the Company
(including all account balances, whether provisional or final and whether or not collected or
available) may be offset and applied toward the payment of the Obligations owing to such Bank or
such Affiliate, whether or not the Obligations, or any part hereof, shall then be due. The Company
agrees that any purchaser or participant under Section 12.1 may, to the fullest extent
permitted by law, exercise all its rights of payment with respect to such purchase or participation
as if it were the direct creditor of the Company in the amount of such purchase or participation.

12.11 Ratable Payments. If any Bank, whether by setoff or otherwise, has payment made
to it upon its Outstanding Credit Exposure in a greater proportion than that received by any other
Bank, such Bank agrees, promptly upon demand, to purchase a portion of the Aggregate Outstanding
Credit Exposure held by the other Banks so that after such purchase each Bank will hold its Pro
Rata Share of the Aggregate Outstanding Credit Exposure. If any Bank, whether in connection with
setoff or amounts which might be subject to setoff or otherwise, receives collateral or other
protection for its Obligations or such amounts which may be subject to setoff, such Bank agrees,
promptly upon demand, to take such action necessary such that all Banks share in the benefits of
such collateral ratably in proportion to their respective Pro Rata Share of the Aggregate
Outstanding Credit Exposure. In case any such payment is disturbed by legal process, or otherwise,
appropriate further adjustments shall be made.

12.12 Nonliability. The relationship between the Company, on the one hand, and the
Banks, the Arranger, the LC Issuers and the Agent, on the other hand, shall be solely that of
borrower and lender. None of the Agent, the Arranger, any LC Issuer or any Bank shall have any
fiduciary responsibilities to the Company. None of the Agent, the Arranger, any LC Issuer or any
Bank undertakes any responsibility to the Company to review or inform the Company of any matter in
connection with any phase of the Company’s business or operations. The Company shall rely entirely
upon its own judgment with respect to its business, and any review, inspection, supervision or
information supplied to the Company by the Banks is for the protection of the Banks and neither the
Company nor any third party is entitled to rely thereon. The Company agrees that none of the
Agent, the Arranger, any LC Issuer or any Bank shall have liability to the Company (whether
sounding in tort, contract or otherwise) for losses suffered by the Company in connection with,
arising out of, or in any way related to, the transactions contemplated and the relationship
established by the Credit Documents, or any act, omission or event occurring in connection
therewith, unless it is determined in a final non-appealable judgment by a court of competent
jurisdiction that such losses resulted from the gross negligence or willful misconduct of the party
from which recovery is sought. None of the Agent, the Arranger, any LC Issuer or any Bank shall
have any liability with respect to, and the Company hereby waives, releases and agrees not to sue
for, any special, indirect, consequential or punitive damages suffered by the Company in connection
with, arising out of, or in any way related to the Credit Documents or the transactions
contemplated thereby.

12.13 Other Agents. The Banks identified on the signature pages of this Agreement or
otherwise herein, or in any amendment hereof or other document related hereto, as being a
“Co-Syndication Agent” or the “Documentation Agent” (the “Other Agents”) shall have no
rights, powers, obligations, liabilities, responsibilities or duties under this Agreement other
than those applicable to all Banks as such. Without limiting the foregoing, the Other Agents shall
not have or be deemed to have any fiduciary relationship with any Bank. Each Bank acknowledges
that it has not relied, and will not rely, on the Other Agents in deciding to enter into this
Agreement or in taking or refraining from taking any action hereunder or pursuant hereto.

12.14 USA Patriot Act. Each Bank hereby notifies the Company that pursuant to
requirements of the USA Patriot Act, such Bank is required to obtain, verify and record information
that identifies the Company, which information includes the name and address of the Company and
other information that will allow such Bank to identify the Company in accordance with the USA
Patriot Act.

12.15 Electronic Delivery.

(a) The Company shall use its commercially reasonable best efforts to transmit to the Agent
all information, documents and other materials that it is obligated to furnish to the Agent
pursuant to this Agreement and the other Credit Documents, including all notices, requests,
financial statements, financial and other reports, certificates and other information materials,
but excluding (i) any Borrowing Notice, Conversion/Continuation Notice or notice of prepayment,
(ii) any notice of a Default or an Event of Default or (iii) any communication that is required to
be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any
Advance hereunder (all such non-excluded communications, collectively, “Communications”),
in an electronic/soft medium in a format reasonably acceptable to the Agent to such e-mail address
as designated by the Agent from time to time. In addition, the Company shall continue to provide
Communications to the Agent or any Bank in the manner specified in this Agreement but only to the
extent requested by the Agent or such Bank. Each Bank and the Company further agrees that the
Agent may make Communications available to the Banks by posting Communications on IntraLinks or a
substantially similar electronic transmission system (the “Platform”); provided,
that upon written notice to the Agent and the Company, any Bank (such bank, a “Declining
Bank”) may decline to receive Communications via the Platform and shall direct the Company to
provide, and the Company shall so provide, such Communications to such Declining Bank by delivery
to such Declining Bank’s address in accordance with Section 14.1. Subject to the
conditions set forth in the proviso in the immediately preceding sentence, nothing in this
Section 12.15 shall prejudice the right of the Agent to make Communications available to
the Banks in any other manner specified herein.

(b) Each Bank (other than a Declining Bank) agrees that an e-mail notice to it (at the address
provided pursuant to the next sentence and deemed delivered as provided in clause (c)
below) specifying that a Communication has been posted to the Platform shall constitute effective
delivery of such Communication to such Bank for purposes of this Agreement. Each Bank (other than
a Declining Bank) agrees (i) to notify the Agent in writing (including by electronic communication)
from time to time to ensure that the Agent has on record an effective e-mail address for such Bank
to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing
notice may be sent to such e-mail address.

(c) Each party hereto (other than a Declining Bank) agrees that any electronic Communication
referred to in this Section 12.15 shall be deemed delivered upon the posting of a record of
such Communication as “sent” in the e-mail system of the sending party or, in the case of any such
Communication to the Agent, upon the posting of a record of such Communication as “received” in the
e-mail system of the Agent, provided that if such Communication is not so received by a
Person during the normal business hours of such Person, such Communication shall be deemed
delivered at the opening of business on the next business day for such Person.

(d) Each party hereto acknowledges that the distribution of material through an electronic
medium is not necessarily secure and there are confidentiality and other risks associated with such
distribution.

(e) EACH PARTY HERETO FURTHER ACKNOWLEDGES AND AGREES THAT:

(i) NONE OF THE AGENT OR ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, THE “AGENT PARTIES”)
WARRANTS THE ADEQUACY OF THE PLATFORM OR THE ACCURACY OR COMPLETENESS OF ANY COMMUNICATION,
AND EACH AGENT PARTY EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN ANY
COMMUNICATION; AND

(ii) NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH
ANY COMMUNICATION OR THE PLATFORM.

12.16 Amendment and Restatement. The amendment and restatement of the Existing Credit
Agreement pursuant to this Agreement shall be effective as of the Amendment Effective Date, subject
to the satisfaction of the conditions precedent set forth in Section 11.1. This Agreement
shall amend and restate in its entirety the Existing Credit Agreement and shall have the effect of
a substitution of terms of the Existing Credit Agreement, but this Agreement will not have the
effect of causing a novation, refinancing or other repayment of the Original Obligations or a
termination or extinguishment of the Liens securing such Original Obligations, which Original
Obligations shall remain outstanding and repayable pursuant to the terms of this Agreement and
which Liens shall remain attached, enforceable and perfected securing such Original Obligations and
all additional obligations arising under this Agreement. Each reference to the Existing Credit
Agreement in any of the Credit Documents, or any other document, instrument or agreement delivered
in connection therewith, shall mean and be a reference to this Agreement.

12.17 Confidentiality. Each of the Agent, the LC Issuers and the Banks agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be
disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority,
(c) to the extent required by applicable laws or by any subpoena or similar legal process, (d) to
any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or
any suit, action or proceeding relating to this Agreement or any other Credit Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Company and its obligations, or (g) to the extent such Information (i)
becomes publicly available other than as a result of a breach of this Section or (ii) becomes
available to the Agent, any LC Issuer or any Bank on a non-confidential basis from a source other
than the Company. For the purposes of this Section, “Information” means all information received
from the Company relating to the Company, its Subsidiaries or their business, other than any such
information that is available to the Agent, any LC Issuer or any Bank on a non-confidential basis
prior to disclosure by the Company; provided that, in the case of information received from the
Company after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

ARTICLE XIII

THE AGENT

13.1 Appointment. Union Bank is hereby appointed Agent hereunder, and each of the
Banks irrevocably authorizes the Agent to act as the contractual representative on behalf of such
Bank. The Agent agrees to act as such upon the express conditions contained in this Article
XIII. The Agent shall not have a fiduciary relationship in respect of any Bank by reason of
this Agreement.

13.2 Powers. The Agent shall have and may exercise such powers hereunder as are
specifically delegated to the Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. The Agent shall not have any implied duties to the Banks or any
obligation to the Banks to take any action hereunder except any action specifically provided by
this Agreement to be taken by the Agent.

13.3 General Immunity. Neither the Agent nor any of its directors, officers, agents
or employees shall be liable to the Banks or any Bank for any action taken or omitted to be taken
by it or them hereunder or in connection herewith except for its or their own gross negligence or
willful misconduct.

13.4 No Responsibility for Recitals, Etc. The Agent shall not be responsible to the
Banks for any recitals, reports, statements, warranties or representations herein or in any Credit
Document or be bound to ascertain or inquire as to the performance or observance of any of the
terms of this Agreement.

13.5 Action on Instructions of Banks. The Agent shall in all cases be fully protected
in acting, or in refraining from acting, hereunder and under any other Credit Document in
accordance with written instructions signed by the Majority Banks (or all of the Banks if required
by Section 10.1), and such instructions and any action taken or failure to act pursuant
thereto shall be binding on all of the Banks. The Banks hereby acknowledge that the Agent shall be
under no duty to take any discretionary action permitted to be taken by it pursuant to the
provisions of this Agreement or any other Credit Document unless it shall be requested in writing
to do so by the Majority Banks. The Agent shall be fully justified in failing or refusing to take
any action hereunder and under any other Credit Document unless it shall first be indemnified to
its satisfaction by the Banks pro rata against any and all liability, cost and expense that it may
incur by reason of taking or continuing to take any such action.

13.6 Employment of Agents and Counsel. The Agent may execute any of its duties as
Agent hereunder by or through employees, agents and attorneys-in-fact and shall not be answerable
to the Banks, except as to money or securities received by it or its authorized agents, for the
default or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care.
The Agent shall be entitled to advice of counsel concerning all matters pertaining to the agency
hereby created and its duties hereunder.

13.7 Reliance on Documents; Counsel. The Agent shall be entitled to rely upon any
notice, consent, certificate, affidavit, letter, telegram, statement, paper or document believed by
it to be genuine and correct and to have been signed or sent by the proper person or persons, and,
in respect to legal matters, upon the opinion of counsel selected by the Agent, which counsel may
be employees of the Agent.

13.8 Agent’s Reimbursement and Indemnification. The Banks agree to reimburse and
indemnify the Agent (in the Agent’s capacity as Agent) ratably in accordance with their respective
Pro Rata Shares (i) for any amounts not reimbursed by the Company for which the Agent (in the
Agent’s capacity as Agent) is entitled to reimbursement by the Company under the Credit Documents,
(ii) for any other expenses reasonably incurred by the Agent on behalf of the Banks, in connection
with the preparation, execution, delivery, administration and enforcement of the Credit Documents,
and for which the Agent (in the Agent’s capacity as Agent) is not entitled to reimbursement by the
Company under the Credit Documents, and (iii) for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, reasonable expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the Agent in any way
relating to or arising out of this Agreement or any other document delivered in connection with
this Agreement or the transactions contemplated hereby or the enforcement of any of the terms
hereof or of any such other documents, and for which the Agent is not entitled to reimbursement by
the Company under the Credit Documents; provided that no Bank shall be liable for any of
the foregoing to the extent they arise from the gross negligence or willful misconduct of the
Agent.

13.9 Rights as a Bank. With respect to its Commitment and any Credit Extension made
by it, the Agent shall have the same rights and powers hereunder as any Bank and may exercise the
same as though it were not the Agent, and the term “Bank” or “Banks” shall, unless the context
otherwise indicates, include Union Bank in its individual capacity. The Agent may accept deposits
from, lend money to, and generally engage in any kind of banking or trust business with the Company
or any Subsidiary as if it were not the Agent.

13.10 Bank Credit Decision. (a) Each Bank acknowledges that it has, independently
and without reliance upon the Agent or any other Bank and based on the financial statements
prepared by the Company and such other documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Bank also acknowledges
that it will, independently and without reliance upon the Agent or any other Bank 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.

(b) Without limiting clause (a) above, each Bank acknowledges and agrees that neither
such Bank nor any of its Affiliates, participants or assignees may rely on the Agent to carry out
such Bank’s or other Person’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 C.F.R. 103.121 (as amended or replaced, the “CIP Regulations”),
or any other applicable law, rule, regulation or order of any governmental authority, including any
program involving any of the following items relating to or in connection with the Company or any
of its Subsidiaries or Affiliates or agents, the Credit Documents or the transactions contemplated
hereby: (i) any identity verification procedure; (ii) any recordkeeping; (iii) any comparison with
a government list; (iv) any customer notice or (v) any other procedure required under the CIP
Regulations or such other law, rule, regulation or order.

(c) Within ten (10) days after the date of this Agreement and at such other times as are
required under the USA Patriot Act, each Bank and each assignee and participant that is not
incorporated under the laws of the United States of America or a state thereof (and is not excepted
from the certification requirement contained in Section 313 of the USA Patriot Act and the
applicable regulations because it is both (i) an Affiliate of a depository institution or foreign
bank that maintains a physical presence in the United States or foreign country and (ii) subject to
supervision by a banking authority regulating such affiliated depository institution or foreign
bank) shall deliver to the Agent a certification, or, if applicable, recertification, certifying
that such Bank is not a “shell” and certifying as to other matters as required by Section 313 of
the USA Patriot Act and the applicable regulations.

13.11 Successor Agent. The Agent may resign at any time by giving written notice
thereof to the Banks and the Company, and the Agent may be removed at any time with or without
cause by written notice received by the Agent from the Majority Banks. Upon any such resignation
or removal, the Majority Banks shall have the right to appoint, on behalf of the Banks, a successor
Agent. If no successor Agent shall have been so appointed by the Majority Banks and shall have
accepted such appointment within thirty (30) days after the retiring Agent’s giving notice of
resignation, then the retiring Agent may appoint, on behalf of the Banks, a successor Agent. Such
successor Agent shall be a commercial bank having capital and retained earnings of at least
$500,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations hereunder. After any retiring Agent’s resignation hereunder as Agent, the
provisions of this Article XIII shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as the Agent hereunder.

13.12 Agent and Arranger Fees. The Company agrees to pay to the Agent and the
Arranger, for their respective accounts, the fees agreed to by the Company, the Agent and the
Arranger pursuant to the proposal letter agreement, dated as of June 10, 2009 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Proposal Letter”),
or as otherwise agreed from time to time.

ARTICLE XIV

NOTICES

14.1 Giving Notice. Except as otherwise permitted by Section 2.13(e) with
respect to borrowing notices, all notices, requests and other communications to any party hereunder
shall be in writing (including electronic transmission, facsimile transmission or similar writing)
and shall be given to such party: (a) in the case of the Company or the Agent, at its address or
facsimile number set forth on the signature pages hereof, (b) in the case of any Bank, at its
address or facsimile number set forth in its Administrative Questionnaire or (c) in the case of any
party, at such other address or facsimile number as such party may hereafter specify for such
purpose by notice to the Agent and the Company in accordance with the provisions of this
Section 14.1. Each such notice, request or other communication shall be effective (i) if
given by facsimile transmission, when transmitted to the facsimile number specified in this Section
and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication
is deposited in the mails with first class postage prepaid, addressed as aforesaid, or (iii) if
given by any other means, when delivered (or, in the case of electronic transmission, received) at
the address specified in this Section; provided that notices to the Agent under Article
II shall not be effective until received.

14.2 Change of Address. The Company, the Agent, any LC Issuer and any Bank may each
change the address for service of notice upon it by a notice in writing to the other parties
hereto.

ARTICLE XV

COUNTERPARTS

This Agreement may be executed in any number of counterparts, all of which when taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. This Agreement shall be effective when it has been executed by the Company,
the Agent, the LC Issuers and the Banks and each party has notified the Agent by facsimile or
telephone that it has taken such action.

ARTICLE XVI

RELEASE OF BONDS

The Agent will release the Bonds without any further action or consent by the Banks, and
deliver, at the Company’s expense, such documents to the Company or the trustee under the Indenture
as the Company may reasonably require to evidence such release, upon written request by the Company
accompanied by a certificate of a Designated Officer certifying that (a) no Default or Event of
Default exists prior to or after giving effect to such release and (b) at least two of the three
then current ratings of the Company’s senior unsecured long-term debt (without third-party credit
enhancement) are as follows: (i) Baa2 or higher in the case of Moody’s, (ii) BBB or higher in the
case of S&P and (iii) BBB or higher in the case of Fitch.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

IN WITNESS WHEREOF, the Company, the Banks, the LC Issuers and the Agent have
executed this Agreement as of the date first above written.

	 	 	 
	                                      
	 	CONSUMERS ENERGY COMPANY

	 	 	By: /s/ Laura L Mountcastle

	 	 	 

	 	 	Name: Laura L. Mountcastle

Title: Vice President & Treasurer

	 	 	Address:

	 	 	One Energy Plaza

Jackson, MI 49201

Attention: Beverly S. Burger

Facsimile No.: (517) 788-0412

Confirmation (Phone) No: (517) 788-2541

E-Mail Address: bsburger@cmsenergy.com

	 	 	  

  

	 	 	UNION BANK, N.A., as Agent and as a Bank

	    
	 	By: /s/ Jeffrey Fesenmaier

	 	 	 

	 	 	Name: Jeffrey Fesenmaier

Title: Vice President

	 	 	Address:

	      

      

       

      

     

                
	 	445 South Figueroa Street

Los Angeles, CA 90071

Attention: Kevin Zitar, Senior Vice President

Facsimile No.: (213) 236-4096

Confirmation (Phone) No.: (213) 236-5503

E-Mail Address: kevin.zitar@uboc.com

	 	 	   

  

	 
	 	Barclays Bank PLC, as a Bank

	       
	 	By: /s/ Alicia Borys

	 	 	 

	        

        

         
	 	Name: Alicia Borys

Title: Assistant Vice President

	 	 	   

   

	 	 	The Royal Bank of Scotland plc, as a Bank

	     
	 	By: /s/ Emily Freedman

	 	 	 

	   

   

                                  
	 	Name: Emily Freedman

Title: Vice President

	     
	 	  

	 	 	  

	 	 	Deutsche Bank Trust Company Americas, as a Bank

	        
	 	By: /s/ Marcus M. Tarkington

	 	 	 

	           

              

        
	 	Name: Marcus M. Tarkington

Title: Director

	 	 	 

	           

                                    

                
	 	By: /s/ Paul O’Leary

—

Name: Paul O’Leary

Title: Director

	 	 	   

   

	 	 	BNP Paribas, as a Bank

	 	 	By: /s/ Pasquale A. Perraglia IV

	 	 	 

	 	 	Name: Pasquale A. Perraglia IV

Title: Vice President

	                                      
	 	 

	 	 	By: /s/ Denis O’Meara

	 	 	 

	 	 	Name: DENIS O’MEARA

Title: Managing Director

 

	 	 	   

   

	 	 	Citibank, N.A., as a Bank

	 	 	By: /s/ Todd C. Davis

	 	 	 

	 	 	Name: Todd C. Davis

Title: Vice President

	                                                  
	 	 

	  
	 	

	 	 	Comerica Bank, as a Bank

	                                                  
	 	By: /s/ Blake Arnett

	 	 	 

	 	 	Name: Blake Arnett

Title: Vice President

	 	 	   

	 	 	   

	 	 	JPMorgan Chase Bank, N.A., as a Bank

	                                                  
	 	By: /s/ Nancy R. Barwig

	 	 	 

	 	 	Name: Nancy R. Barwig

Title: Vice President

	 	 	    

  

	 	 	National City Bank, as a Bank

	                                                  
	 	By: /s/ Arthur F. Gray

	 	 	 

	 	 	Name: Arthur F. Gray

Title: Senior Vice President

	 	 	    

  

	 	 	UBS Loan Finance LLC, as a Bank

	 	 	By: /s/ Marie Haddad

	 	 	 

	 	 	Name: Marie Haddad

Title: Associate Director

	                             
	 	  

	 	 	By: /s/ Irja R. Otsa

	 	 	 

	 	 	Name: Irja R. Otsa

Title: Associate Director

	 	 	   

   

	 	 	U.S. Bank National Association, as a Bank

	                                   
	 	By: /s/ Paul R. Morrison

	 	 	 

	 	 	Name: Paul R. Morrison

Title: Managing Director

EXHIBIT A

REQUIRED OPINIONS FROM

JAMES E. BRUNNER, ESQ.

1. The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Michigan.

2. The execution and delivery of the Credit Documents by the Company and the performance by
the Company of the Obligations have been duly authorized by all necessary corporate action and
proceedings on the part of the Company and will not:

(a) contravene the Company’s Restated Articles of Incorporation, as amended, or bylaws;

(b) contravene any law or any contractual restriction imposed by any indenture or any
other agreement or instrument evidencing or governing indebtedness for borrowed money of the
Company (including but not limited to the Company Indentures (as defined below)); or

(c) result in or require the creation of any Lien upon or with respect to any of the
Company’s properties except the lien of the Indenture securing the Bonds and any Lien in
favor of the Agent on the Facility LC Collateral Account or any funds therein.

As used in this paragraph 2, “Company Indentures” means collectively, (i) the Indenture dated
as of January 1, 1996, as supplemented and amended from time to time, between the Company (formerly
known as Consumers Power Company) and The Bank of New York Mellon (formerly known as The Bank of
New York), as Trustee, and (ii) the Indenture dated as of February 1, 1998, as supplemented and
amended from time to time, between the Company and The Bank of New York Mellon (successor trustee
to JPMorgan Chase Bank, N.A.), as Trustee.

3. The Credit Documents have been duly executed and delivered by the Company.

4. To the best of my knowledge, there is no pending or threatened action or proceeding against
the Company or any of its Consolidated Subsidiaries before any court, governmental agency or
arbitrator (except (i) to the extent described in the Company’s annual report on Form 10-K for the
year ended December 31, 2008 and quarterly report on Form 10-Q for the quarter ended June 30, 2009,
in each case as filed with the SEC, and (ii) such other similar actions, suits and proceedings
predicated on the occurrence of the same events giving rise to any actions, suits and proceedings
described in the reports filed with the SEC set forth in clause (i) of this paragraph 4)
which might reasonably be expected to materially adversely affect the financial condition or
results of operations of the Company and its Consolidated Subsidiaries, taken as a whole, or that
would materially adversely affect the Company’s ability to perform its obligations under any Credit
Document. To the best of my knowledge, there is no litigation challenging the validity or the
enforceability of any of the Credit Documents.

5. 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 the Company of any Credit Document, except for the authorization to issue, sell or
guarantee secured and/or unsecured short-term debt granted by the Federal Energy Regulatory
Commission in Docket No. ES08-47-000 (hereinafter the “FERC Order”). The FERC Order is in full
force and effect as of the date hereof.

6. The Bonds executed in connection with the Existing Credit Agreement (a) are in due and
proper form, (b) evidence and secure the Obligations owing under the Agreement and (c) are valid
and enforceable obligations of the Company in accordance with their terms, secured by the lien of
the Indenture on an equal and ratable basis with all other bonds issued thereunder and otherwise
entitled to the benefits provided by the Indenture.

7. The Indenture has been qualified under the Trust Indenture Act of 1939, as amended, and the
execution and delivery of the Supplemental Indenture will not cause the Indenture to not be so
qualified.

8. The Company is not an “investment company” or a company “controlled” by an “investment
company” as such terms are defined in the Investment Company Act of 1940, as amended.

9. In a properly presented case, a Michigan court or a federal court applying Michigan choice
of law rules should give effect to the choice of law provisions of the Agreement and should hold
that the Agreement is to be governed by the laws of the State of New York rather than the laws of
the State of Michigan, except in the case of those provisions set forth in the Agreement the
enforcement of which would contravene a fundamental policy of the State of Michigan. In the course
of our review of the Agreement, nothing has come to my attention to indicate that any of such
provisions would do so. Notwithstanding the foregoing, even if a Michigan court or a federal court
holds that the Agreement is to be governed by the laws of the State of Michigan, the Agreement
constitutes a legal, valid and binding obligation of the Company, enforceable under Michigan law
(including usury provisions) against the Company in accordance with its terms, subject to (a) the
effect of applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (b) the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law).

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

I,       ,        of Consumers Energy Company, a Michigan corporation (the
“Company”), DO HEREBY CERTIFY in connection with the Amended and Restated Revolving Credit
Agreement, dated as of August 18, 2009 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”; the terms defined therein being used herein as
so defined), among the Company, various financial institutions and Union Bank, N.A., as Agent,
that:

Article VIII of the Credit Agreement provides that the Company shall: “At all times,
maintain a ratio of Total Consolidated Debt to Total Consolidated Capitalization of not greater
than 0.70 to 1.0.”

The following calculations are made in accordance with the definitions of Total Consolidated Debt
and Total Consolidated Capitalization in the Credit Agreement and are correct and accurate as of
     ,       :

A. Total Consolidated Debt

	 	 	 	 	 
	 	 	(a)  Indebtedness for borrowed money

	 	$             
	 	 	
 
	 	 
	plus
	 	(b)  Indebtedness for deferred purchase price of property/services

	 	(+) $           
	 
	 	
 
	 	 
	 

 

 

 

 

 

plus
	 	(c)  Liabilities for accumulated funding deficiencies (prior to the

effectiveness of the applicable provisions of the Pension Protection

Act of 2006 with respect to a Plan) and liabilities for failure to

make a payment required to satisfy the minimum funding standard within

the meaning of Section 412 of the Code or Section 302 of ERISA (on and

after the effectiveness of the applicable provisions of the Pension

Protection Act of 2006 with respect to a Plan).

	 	 

 

 

 

 

 

(+)$           
	 
	 	
 
	 	 
	plus
	 	(d)  Liabilities in connection with withdrawal liability under ERISA

	 	(+)$           
	 
	 	
 
	 	 
	plus
	 	(e)  Obligations under acceptance facilities

	 	(+)$           
	 
	 	
 
	 	 
	plus
	 	(f)  Obligations under Capital Leases

	 	(+)$           
	 
	 	
 
	 	 
	 

plus
	 	(g)  Obligations under interest rate swap, “cap”, “collar” or other

hedging agreement

	 	 

(+)$           
	 
	 	
 
	 	 
	plus
	 	(h)  Guaranties, endorsements and other contingent obligations

	 	(+)$           
	 
	 	
 
	 	 
	minus
	 	(i)  Principal amount of any Securitized Bonds

	 	(-) $           
	 
	 	
 
	 	 
	 

minus
	 	(j)  Junior Subordinated Debt owned by any Hybrid Equity Securities

Subsidiary or Hybrid Preferred Securities Subsidiary

	 	 

(-)$           
	 
	 	
 
	 	 
	 

 

minus
	 	(k)  Hybrid Equity Securities and Hybrid Preferred Securities

outstanding as of December 31, 2002 (including subordinated guaranties

by the Company of payments with respect thereto)

	 	 

 

(-)$           
	 
	 	
 
	 	 
	 

 

minus
	 	(l)  Agreed upon percentage of Net Proceeds from issuance of hybrid

debt/equity securities (other than Junior Subordinated Debt, Hybrid

Equity Securities and Hybrid Preferred Securities)

	 	 

 

(-)$           
	 
	 	
 
	 	 
	 

minus
	 	(m)  Liabilities on the Company’s balance sheet resulting from the

disposition of the Palisades Nuclear Plant

	 	 

(-)$           
	 
	 	
 
	 	 
	 

Minus
	 	(n)  Obligations of the Company and its Consolidated Subsidiaries of

the type described in Section 1.3 of the Credit Agreement

	 	 

(-)$           
	 
	 	 

	 	 
	 

Minus
	 	(o)  Debt of Affiliates of the Company of the type described in clause

(vii) of the definition of “Total Consolidated Debt”

	 	 

(-)$           
	 
	 	 

	 	 
	 

 

minus
	 	(p)  Debt of the Company and its Affiliates that is re-categorized as

such from certain lease obligations pursuant to Emerging Issues Task

Force Issue 01-8

	 	 

 

(-)$           
	 
	 	
 
	 	 
	 

minus
	 	(q)  Non-cash obligations resulting from the adoption of FASB No. 158

to the extent such obligations are required to be treated as debt

	 	 

(-)$           
	 
	 	
 
	 	 
	 	 	Total

	 	$           
	 	 	
 
	 	 
	B.
	 	Total Consolidated Capitalization:

	 	

	 	 	 

	 	

	 	 	(a)  Total Consolidated Debt

	 	$           
	 	 	
 
	 	 
	plus
	 	(b)  The sum of Items A(j), A(k), A(l), A(n) and A(o) above1

	 	(+)$           
	 
	 	 

	 	 
	plus
	 	(c)  Equity of common stockholders

	 	(+)$           
	 
	 	
 
	 	 
	plus
	 	(d)  Equity of preference stockholders

	 	(+)$           
	 
	 	
 
	 	 
	plus
	 	(e)  Equity of preferred stockholders

	 	(+)$           
	 
	 	
 
	 	 
	 	 	Total

	 	$           
	 	 	
 
	 	 
	C.
	 	Debt to Capital Ratio

	 	     to 1.00
	 	 	 

	 	

	 	 	(total of A divided by total of B)

	 	

	 	 	 

	 	

1. In the case of securities of the type described in A(k) and A(l), only to the extent
such securities have been deemed to be equity pursuant to Financial Accounting Standards Board
Statement No. 150.

IN WITNESS WHEREOF, I have signed this Certificate this        day of       ,       .

	 	 	 
	 	 	                                 
	              
	 	Name:                       

	 	 	Title:

EXHIBIT C

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of
Assignor] (the “Assignor”) and [Insert name of
Assignee] (the “Assignee”). Capitalized terms used but not defined
herein shall have the meanings given to them in the Amended and Restated Revolving Credit Agreement
identified below (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated
herein by reference and made a part of this Assignment and Assumption as if set forth herein in
full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations in its capacity as a Bank under the Credit Agreement and any
other documents or instruments delivered pursuant thereto that represents the amount and percentage
interest identified below of all of the Assignor’s outstanding rights and obligations under the
respective facilities identified below (including any letters of credit and guaranties included in
such facilities and, to the extent permitted to be assigned under applicable law, all claims
(including contract claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity), suits, causes of action and any other right of the Assignor against any
Person whether known or unknown arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby) (the
“Assigned Interest”). Such sale and assignment is without recourse to the Assignor and,
except as expressly provided in this Assignment and Assumption, without representation or warranty
by the Assignor.

1.  Assignor:                                    

	 	 	2.  Assignee:                                  [and is an Affiliate of Assignor]

3.  Borrower:  Consumers Energy Company

4.  Agent:  Union Bank, N.A., as the Agent under the Credit Agreement.

	 	 	5.  Credit Agreement:  Amended and Restated Revolving Credit Agreement, dated as of August 18,
2009, among Consumers Energy Company, the Banks party thereto, and Union Bank, N.A., as Agent.

6. Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	Percentage Assigned of
	 	 	Commitment/Outstanding	 	Commitment/Outstanding	 	Commitment/Outstanding
	Facility Assigned	 	Credit Exposure for	 	Credit Exposure	 	Credit
	 	 	all Banks1	 	Assigned1	 	Exposure2
	             

	 	 	$	 	 	 	$	 	 	     %
	 

	 	

	 	

	 	

	              

	 	 	$	 	 	 	$	 	 	     %
	 

	 	

	 	

	 	

	              

	 	 	$	 	 	 	$	 	 	     %
	 

	 	

	 	

	 	

	1.	 	Amount to be adjusted by the counterparties to take into account any payments or
prepayments made between the Trade Date and the Effective Date.

	2.	 	Set forth, to at least 9 decimals, as a percentage of the Commitment/Outstanding Credit
Exposure of all Banks thereunder.

7. Trade Date: 3

Effective Date:              , 20       [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE
DATE OF RECORDATION OF TRANSFER BY THE AGENT.]

3. Insert if satisfaction of minimum amounts is to be determined as of the Trade Date.

1

The terms set forth in this Assignment and Assumption are hereby agreed to:

ASSIGNOR

[NAME OF ASSIGNOR]

	 	 	 	By:

Name:

Title:

ASSIGNEE

[NAME OF ASSIGNEE]

	 	 	 	By:

Name:

Title:

[Consented to and] 4 Accepted:

UNION BANK, N.A., as Agent

By:

Name:

Title:

[Consented to:] 5 

[NAME OF RELEVANT PARTY]

By:

Name:

Title:

	4.	 	To be added only if the consent of the Agent is required by the terms of the Amended and
Restated Credit Agreement.

5. To be added only if the consent of the Company and/or other parties (e.g., the LC Issuers) is
required by the terms of the Credit Agreement.

ANNEX 1

TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor. The Assignor represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby. Neither the Assignor nor any of its officers, directors,
employees, agents or attorneys shall be responsible for (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other Credit Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency, perfection,
priority, collectibility, or value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of the Company, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document, (iv) the performance or observance by the Company, any
of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under
any Credit Document, (v) inspecting any of the property, books or records of the Company, or any
guarantor, or (vi) any mistake, error of judgment, or action taken or omitted to be taken in
connection with the Credit Extensions or the Credit Documents.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Bank under the
Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Bank thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Bank thereunder, (iii) agrees that its payment instructions and notice
instructions are as set forth in Schedule 1 to this Assignment and Assumption, (iv)
confirms that none of the funds, monies, assets or other consideration being used to make the
purchase and assumption hereunder are “plan assets” as defined under ERISA and that its rights,
benefits and interests in and under the Credit Documents will not be “plan assets” under ERISA, (v)
agrees to indemnify and hold the Assignor harmless against all losses, costs and expenses
(including reasonable attorneys’ fees) and liabilities incurred by the Assignor in connection with
or arising in any manner from the Assignee’s non-performance of the obligations assumed under this
Assignment and Assumption, (vi) it has received a copy of the Credit Agreement, together with
copies of financial statements 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
Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other Bank, and (vii) attached
as Schedule 2 to this Assignment and Assumption is any documentation required to be
delivered by the Assignee with respect to its tax status pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; (b) appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under the Credit Documents as
are delegated to the Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; and (c) agrees that (i) it will, independently and without reliance on the
Agent, the Assignor or any other Bank, 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 Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Documents are required to be performed by it as a
Bank.

2. Payments. The Assignee shall pay the Assignor, on the Effective Date, the amount
agreed to by the Assignor and the Assignee. From and after the Effective Date, the Agent shall
make all payments in respect of the Assigned Interest (including payments of principal, interest,
Reimbursement Obligations, fees and other amounts) to the Assignor for amounts which have accrued
to but excluding the Effective Date and to the Assignee for amounts which have accrued from and
after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

SCHEDULE 1

TO

TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION AGREEMENT

Administrative Questionnaire

For Form, call Brian Zimmer at (213) 236-7201 or Tawny Palovchik at (213) 236-5414

SCHEDULE 2

TO

TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION AGREEMENT

US and Non-US Tax Information Reporting Requirements

EXHIBIT D

TERMS OF SUBORDINATION

[JUNIOR SUBORDINATED DEBT]

ARTICLE ____

SUBORDINATION

Section       .1. Applicability of Article; Securities Subordinated to Senior Indebtedness.

(a) This Article        shall apply only to the Securities of any series which, pursuant to
Section       , are expressly made subject to this Article. Such Securities are referred to in this
Article        as “Subordinated Securities.”

(b) The Issuer covenants and agrees, and each Holder of Subordinated Securities by his
acceptance thereof likewise covenants and agrees, that the indebtedness represented by the
Subordinated Securities and the payment of the principal and interest, if any, on the Subordinated
Securities is subordinated and subject in right, to the extent and in the manner provided in this
Article, to the prior payment in full of all Senior Indebtedness.

“Senior Indebtedness” means the principal of and premium, if any, and interest on the
following, whether outstanding on the date hereof or thereafter incurred, created or assumed: (i)
indebtedness of the Issuer for money borrowed by the Issuer (including purchase money obligations)
or evidenced by debentures (other than the Subordinated Securities), notes, bankers’ acceptances or
other corporate debt securities, or similar instruments issued by the Issuer; (ii) all capital
lease obligations of the Issuer; (iii) all obligations of the Issuer issued or assumed as the
deferred purchase price of property, all conditional sale obligations of the Issuer and all
obligations of the Issuer under any title retention agreement (but excluding trade accounts payable
arising in the ordinary course of business); (iv) obligations with respect to letters of credit;
(v) all indebtedness of others of the type referred to in the preceding clauses (i) through (iv)
assumed by or guaranteed in any manner by the Issuer or in effect guaranteed by the Issuer; (vi)
all obligations of the type referred to in clauses (i) through (v) above of other persons secured
by any lien on any property or asset of the Issuer (whether or not such obligation is assumed by
the Issuer), except for (1) any such indebtedness that is by its terms subordinated to or pari
passu with the Subordinated Securities, as the case may be, including all other debt securities and
guaranties in respect of those debt securities, issued to any other trusts, partnerships or other
entities affiliated with the Issuer which act as a financing vehicle of the Issuer in connection
with the issuance of preferred securities by such entity or other securities which rank pari passu
with, or junior to, the Preferred Securities, and (2) any indebtedness between or among the Issuer
and its affiliates; and/or (vii) renewals, extensions or refundings of any of the indebtedness
referred to in the preceding clauses unless, in the case of any particular indebtedness, renewal,
extension or refunding, under the express provisions of the instrument creating or evidencing the
same or the assumption or guarantee of the same, or pursuant to which the same is outstanding, such
indebtedness or such renewal, extension or refunding thereof is not superior in right of payment to
the Subordinated Securities.

This Article shall constitute a continuing obligation to all Persons who, in reliance upon
such provisions become holders of, or continue to hold, Senior Indebtedness, and such provisions
are made for the benefit of the holders of Senior Indebtedness, and such holders are made obligees
hereunder and they and/or each of them may enforce such provisions.

Section       .2. Issuer Not to Make Payments with Respect to Subordinated Securities in
Certain Circumstances.

(a) Upon the maturity of any Senior Indebtedness by lapse of time, acceleration or otherwise,
all principal thereof and premium and interest thereon shall first be paid in full, or such payment
duly provided for in cash in a manner satisfactory to the holders of such Senior Indebtedness,
before any payment is made on account of the principal of, or interest on, Subordinated Securities
or to acquire any Subordinated Securities or on account of any sinking fund provisions of any
Subordinated Securities (except payments made in capital stock of the Issuer or in warrants, rights
or options to purchase or acquire capital stock of the Issuer, sinking fund payments made in
Subordinated Securities acquired by the Issuer before the maturity of such Senior Indebtedness, and
payments made through the exchange of other debt obligations of the Issuer for such Subordinated
Securities in accordance with the terms of such Subordinated Securities, provided that such
debt obligations are subordinated to Senior Indebtedness at least to the extent that the
Subordinated Securities for which they are exchanged are so subordinated pursuant to this Article
     ).

(b) Upon the happening and during the continuation of any default in payment of the principal
of, or interest on, any Senior Indebtedness when the same becomes due and payable or in the event
any judicial proceeding shall be pending with respect to any such default, then, unless and until
such default shall have been cured or waived or shall have ceased to exist, no payment shall be
made by the Issuer with respect to the principal of, or interest on, Subordinated Securities or to
acquire any Subordinated Securities or on account of any sinking fund provisions of Subordinated
Securities (except payments made in capital stock of the Issuer or in warrants, rights, or options
to purchase or acquire capital stock of the Issuer, sinking fund payments made in Subordinated
Securities acquired by the Issuer before such default and notice thereof, and payments made through
the exchange of other debt obligations of the Issuer for such Subordinated Securities in accordance
with the terms of such Subordinated Securities, provided that such debt obligations are
subordinated to Senior Indebtedness at least to the extent that the Subordinated Securities for
which they are exchanged are so subordinated pursuant to this Article       ).

(c) In the event that, notwithstanding the provisions of this Section       .2, the Issuer shall
make any payment to the Trustee on account of the principal of or interest on Subordinated
Securities, or on account of any sinking fund provisions of such Subordinated Securities, after the
maturity of any Senior Indebtedness as described in Section       .2(a) above or after the happening
of a default in payment of the principal of or interest on any Senior Indebtedness as described in
Section       .2(b) above, then, unless and until all Senior Indebtedness which shall have matured,
and all premium and interest thereon, shall have been paid in full (or the declaration of
acceleration thereof shall have been rescinded or annulled), or such default shall have been cured
or waived or shall have ceased to exist, such payment (subject to the provisions of Sections       .6
and       .7) shall be held by the Trustee, in trust for the benefit of, and shall be paid forthwith
over and delivered to, the holders of such Senior Indebtedness (pro rata as to each of such holders
on the basis of the respective amounts of Senior Indebtedness held by them) or their representative
or the trustee under the indenture or other agreement (if any) pursuant to which such Senior
Indebtedness may have been issued, as their respective interests may appear, for application to the
payment of all such Senior Indebtedness remaining unpaid to the extent necessary to pay the same in
full in accordance with its terms, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Indebtedness. The Issuer shall give prompt written notice to the
Trustee of any default in the payment of principal of or interest on any Senior Indebtedness.

Section       .3. Subordinated Securities Subordinated to Prior Payment of All Senior
Indebtedness on Dissolution, Liquidation or Reorganization of Issuer. Upon any distribution of
assets of the Issuer in any dissolution, winding up, liquidation or reorganization of the Issuer
(whether voluntary or involuntary, in bankruptcy, insolvency or receivership proceedings or upon an
assignment for the benefit of creditors or otherwise):

(a) the holders of all Senior Indebtedness shall first be entitled to receive payments in full
of the principal thereof and premium and interest due thereon, or provision shall be made for such
payment, before the Holders of Subordinated Securities are entitled to receive any payment on
account of the principal of or interest on such Subordinated Securities;

(b) any payment or distribution of assets of the Issuer of any kind or character, whether in
cash, property or securities (other than securities of the Issuer as reorganized or readjusted or
securities of the Issuer or any other corporation provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent provided in this Article
     with respect to Subordinated Securities, to the payment in full without diminution or
modification by such plan of all Senior Indebtedness), to which the Holders of Subordinated
Securities or the Trustee on behalf of the Holders of Subordinated Securities would be entitled
except for the provisions of this Article        shall be paid or delivered by the liquidating
trustee or agent or other person making such payment or distribution directly to the holders of
Senior Indebtedness or their representative, or to the trustee under any indenture under which
Senior Indebtedness may have been issued (pro rata as to each such holder, representative or
trustee on the basis of the respective amounts of unpaid Senior Indebtedness held or represented by
each), to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid,
after giving effect to any concurrent payment or distribution or provision thereof to the holders
of such Senior Indebtedness; and

(c) in the event that notwithstanding the foregoing provisions of this Section       .3, any
payment or distribution of assets of the Issuer of any kind or character, whether in cash, property
or securities (other than securities of the Issuer as reorganized or readjusted or securities of
the Issuer or any other corporation provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in this Article        with respect
to Subordinated Securities, to the payment in full without diminution or modification by such plan
of all Senior Indebtedness), shall be received by the Trustee or the Holders of the Subordinated
Securities on account of principal of or interest on the Subordinated Securities before all Senior
Indebtedness is paid in full, or effective provision made for its payment, such payment or
distribution (subject to the provisions of Section       .6 and       .7) shall be received and held in
trust for and shall be paid over to the holders of the Senior Indebtedness remaining unpaid or
unprovided for or their representative, or to the trustee under any indenture under which such
Senior Indebtedness may have been issued (pro rata as provided in clause (b) above), for
application to the payment of such Senior Indebtedness until all such Senior Indebtedness shall
have been paid in full, after giving effect to any concurrent payment or distribution or provision
therefor to the holders of such Senior Indebtedness.

The Issuer shall give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of the Issuer.

The consolidation of the Issuer with, or the merger of the Issuer into, another corporation or
the liquidation or dissolution of the Issuer following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article        hereof shall not be deemed a dissolution, winding up,
liquidation or reorganization for the purposes of this Section       .3 if such other corporation
shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions
stated such in Article       .

Section       .4. Holders of Subordinated Securities to be Subrogated to Right of Holders of
Senior Indebtedness. Subject to the payment in full of all Senior Indebtedness, the Holders of
Subordinated Securities shall be subrogated to the rights of the holders of Senior Indebtedness to
receive payments or distributions of assets of the Issuer applicable to the Senior Indebtedness
until all amounts owing on Subordinated Securities shall be paid in full, and for the purposes of
such subrogation no payments or distributions to the holders of the Senior Indebtedness by or on
behalf of the Issuer or by or on behalf of the Holders of Subordinated Securities by virtue of this
Article        which otherwise would have been made to the Holders of Subordinated Securities shall,
as between the Issuer, its creditors other than holders of Senior Indebtedness and the Holders of
Subordinated Securities, be deemed to be payment by the Issuer to or on account of the Senior
Indebtedness, it being understood that the provisions of this Article        are and are intended
solely for the purpose of defining the relative rights of the Holders of the Subordinated
Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

Section       .5. Obligation of the Issuer Unconditional. Nothing contained in this
Article        or elsewhere in this Indenture or in any Subordinated Security is intended to or shall
impair, as among the Issuer, its creditors other than holders of Senior Indebtedness and the
Holders of Subordinated Securities, the obligation of the Issuer, which is absolute and
unconditional, to pay to the Holders of Subordinated Securities the principal of, and interest on,
Subordinated Securities as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders of Subordinated
Securities and creditors of the Issuer other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the Trustee or the Holder of any Subordinated Security from
exercising all remedies otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article        of the holders of Senior Indebtedness in
respect of cash, property or securities of the Issuer received upon the exercise of any such
remedy. Upon any payment or distribution of assets of the Issuer referred to in this Article       ,
the Trustee and Holders of Subordinated Securities shall be entitled to rely upon any order or
decree made by any court of competent jurisdiction in which such dissolution, winding up,
liquidation or reorganization proceedings are pending, or, subject to the provisions of Section      
and       , a certificate of the receiver, trustee in bankruptcy, liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or the Holders of Subordinated
Securities, for the purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of the Issuer, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article       .

Nothing contained in this Article        or elsewhere in this Indenture or in any Subordinated
Security is intended to or shall affect the obligation of the Issuer to make, or prevent the Issuer
from making, at any time except during the pendency of any dissolution, winding up, liquidation or
reorganization proceeding, and, except as provided in subsections (a) and (b) of Section       .2,
payments at any time of the principal of, or interest on, Subordinated Securities.

Section       .6. Trustee Entitled to Assume Payments Not Prohibited in Absence of
Notice. The Issuer shall give prompt written notice to the Trustee of any fact known to the
Issuer which would prohibit the making of any payment or distribution to or by the Trustee in
respect of the Subordinated Securities. Notwithstanding the provisions of this Article        or any
provision of this Indenture, the Trustee shall not at any time be charged with knowledge of the
existence of any facts which would prohibit the making of any payment or distribution to or by the
Trustee, unless at least two Business Days prior to the making of any such payment, the Trustee
shall have received written notice thereof from the Issuer or from one or more holders of Senior
Indebtedness or from any representative thereof or from any trustee therefor, together with proof
satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such
representative or trustee; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Sections        and       , shall be entitled to assume conclusively that no
such facts exist. The Trustee shall be entitled to rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Senior Indebtedness (or a representative or
trustee on behalf of the holder) to establish that such notice has been given by a holder of Senior
Indebtedness (or a representative of or trustee on behalf of any such holder). In the event that
the Trustee determines, in good faith, that further evidence is required with respect to the right
of any Person as a holder of Senior Indebtedness to participate in any payments or distribution
pursuant of this Article       , the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person,
as to the extent to which such Person is entitled to participate in such payment or distribution,
and as to other facts pertinent to the rights of such Person under this Article       , and if such
evidence is not furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. The Trustee, however, shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and nothing in this
Article        shall apply to claims of, or payments to, the Trustee under or pursuant to Section
     .

Section       .7. Application by Trustee of Monies or Government Obligations Deposited with
It. Money or Government Obligations deposited in trust with the Trustee pursuant to and in
accordance with Section        shall be for the sole benefit of Securityholders and, to the extent
allocated for the payment of Subordinated Securities, shall not be subject to the subordination
provisions of this Article       , if the same are deposited in trust prior to the happening of any
event specified in Section       .2. Otherwise, any deposit of monies or Government Obligations by
the Issuer with the Trustee or any paying agent (whether or not in trust) for the payment of the
principal of, or interest on, any Subordinated Securities shall be subject to the provisions of
Section       .1,       .2 and       .3 except that, if prior to the date on which by the terms of this
Indenture any such monies may become payable for any purposes (including, without limitation, the
payment of the principal of, or the interest, if any, on any Subordinated Security) the Trustee
shall not have received with respect to such monies the notice provided for in Section       .6, then
the Trustee or the paying agent shall have full power and authority to receive such monies and
Government Obligations and to apply the same to the purpose for which they were received, and shall
not be affected by any notice to the contrary which may be received by it on or after such date.
This Section       .7 shall be construed solely for the benefit of the Trustee and paying agent and,
as to the first sentence hereof, the Securityholders, and shall not otherwise effect the rights of
holders of Senior Indebtedness.

Section       .8. Subordination Rights Not Impaired by Acts or Omissions of Issuer or Holders
of Senior Indebtedness. No rights of any present or future holders of any Senior Indebtedness
to enforce subordination as provided herein shall at any time in any way be prejudiced or impaired
by any act or failure to act on the part of the Issuer or by any act or failure to act, in good
faith, by any such holders or by any noncompliance by the Issuer with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or be otherwise charged with.

Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Issuer may, at any time and from time to time, without the consent of or notice
to the Trustee or the Holders of the Subordinated Securities, without incurring responsibility to
the Holders of the Subordinated Securities and without impairing or releasing the subordination
provided in this Article        or the obligations hereunder of the Holders of the Subordinated
Securities to the holders of such Senior Indebtedness, do any one or more of the following: (i)
change the manner, place or terms of payment or extend the time of payment of, or renew or alter,
such Senior Indebtedness, or otherwise amend or supplement in any manner such Senior Indebtedness
or any instrument evidencing the same or any agreement under which such Senior Indebtedness is
outstanding; (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing such Senior Indebtedness; (iii) release any Person liable in any manner for the
collection for such Senior Indebtedness; and (iv) exercise or refrain from exercising any rights
against the Issuer, as the case may be, and any other Person.

Section       .9. Securityholders Authorize Trustee to Effectuate Subordination of
Securities. Each Holder of Subordinated Securities by his acceptance thereof authorizes and
expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate
to effectuate the subordination provided in this Article        and appoints the Trustee his
attorney-in-fact for such purpose, including in the event of any dissolution, winding up,
liquidation or reorganization of the Issuer (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or otherwise) the immediate filing
of a claim for the unpaid balance of his Subordinated Securities in the form required in said
proceedings and causing said claim to be approved. If the Trustee does not file a proper claim or
proof of debt in the form required in such proceeding prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of Senior Indebtedness have the right to file
and are hereby authorized to file an appropriate claim for and on behalf of the Holders of said
Subordinated Securities.

Section       .10. Right of Trustee to Hold Senior Indebtedness. The Trustee in its
individual capacity shall be entitled to all of the rights set forth in this Article        in
respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of
Senior Indebtedness, and nothing in this Indenture shall be construed to deprive the Trustee of any
of its rights as such holder.

With respect to the holders of Senior Indebtedness of the Issuer, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set forth in
this Article       , and no implied covenants or obligations with respect to the holders of such
Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not
be deemed to owe any fiduciary duty to the holders of such Senior Indebtedness and, subject to the
provisions of Sections       .2 and       .3, the Trustee shall not be liable to any holder of such
Senior Indebtedness if it shall pay over or deliver to Holders of Subordinated Securities, the
Issuer or any other Person money or assets to which any holder of such Senior Indebtedness shall be
entitled by virtue of this Article        or otherwise.

Section       .11. Article        Not to Prevent Events of Defaults. The failure to make a
payment on account of principal or interest by reason of any provision in this Article        shall
not be construed as preventing the occurrence of an Event of Default under Section       .

EXHIBIT E

TERMS OF SUBORDINATION

[GUARANTY OF HYBRID EQUITY SECURITIES/HYBRID PREFERRED SECURITIES]

SECTION       . This Guarantee will constitute an unsecured obligation of the Guarantor and will
rank subordinate and junior in right of payment to all other liabilities of the Guarantor and pari
passu with any guarantee now or hereafter entered into by the Guarantor in respect of the
securities representing common beneficial interests in the assets of the Issuer or of any preferred
or preference stock of any affiliate of the Guarantor.

SCHEDULE 1

PRICING SCHEDULE

The Applicable Margin shall be determined pursuant to the table below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Specified Rating

	 	 	A-/A-/A3	 	 	BBB+/BBB+/Baa1
	 	BBB/BBB/Baa2
	 	BBB-/BBB-/Baa3
	 	BB+/BB+/Ba1 or lower

	 

	 	

	 	

	 	

	 	

	 	

	Commitment Fee Rate

	 	 	0.40	%	 	 	0.50	%	 	 	0.75	%	 	 	1.00	%	 	 	1.25	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Margin

for Eurodollar Loans

	 	

2.50%
	 	

3.00%
	 	

3.50%
	 	

4.00%
	 	

4.50%

	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Margin

for ABR Loans

	 	

1.50%
	 	

2.00%
	 	

2.50%
	 	

3.00%
	 	

3.50%

	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	For purposes of the foregoing:

The “Rating” from S&P, Fitch or Moody’s shall mean (a) at any time prior to the FMB Release
Date, the rating issued by such rating agency and then in effect with respect to the Senior Debt,
and (b) at any time thereafter, the rating issued by such rating agency and then in effect with
respect to the Company’s senior unsecured long-term debt (without credit enhancement).

(a) If each of S&P, Fitch and Moody’s shall issue a Rating, the Specified Rating shall be (i)
if two of such Ratings are the same, such Ratings; and (ii) if all such Ratings are different, the
middle of such Ratings.

(b) If only two of S&P, Fitch and Moody’s shall issue a Rating, the Specified Rating shall be
the higher of such Ratings; provided that if a split of greater than one ratings category
occurs between such Ratings, the Specified Rating shall be the ratings category that is one
category below the higher of such Ratings.

(c) If only one of S&P, Fitch and Moody’s shall issue a Rating, the Specified Rating shall be
such Rating.

(d) If none of S&P, Fitch and Moody’s shall issue a Rating, the Specified Rating shall be
BB+/BB+/Ba1.

2

SCHEDULE 2

COMMITMENT SCHEDULE

	 	 	 	 	 
	BANK	 	COMMITMENT
	Union Bank, N.A.

	 	$	15,000,000.00	 
	 

	 	 	 	 
	Barclays Bank PLC

	 	$	13,500,000.00	 
	 

	 	 	 	 
	The Royal Bank of Scotland plc

	 	$	13,500,000.00	 
	 

	 	 	 	 
	Deutsche Bank Trust Company Americas

	 	$	13,500,000.00	 
	 

	 	 	 	 
	BNP Paribas

	 	$	13,500,000.00	 
	 

	 	 	 	 
	Citibank, N.A.

	 	$	13,500,000.00	 
	 

	 	 	 	 
	Comerica Bank

	 	$	13,500,000.00	 
	 

	 	 	 	 
	JPMorgan Chase Bank, N.A.

	 	$	13,500,000.00	 
	 

	 	 	 	 
	National City Bank

	 	$	13,500,000.00	 
	 

	 	 	 	 
	UBS Loan Finance LLC

	 	$	13,500,000.00	 
	 

	 	 	 	 
	U.S. Bank National Association

	 	$	13,500,000.00	 
	 

	 	 	 	 
	AGGREGATE COMMITMENT

	 	$	150,000,000.00	 
	 

	 	 	 	 

3exhibit4_1.htm

  

  

  

Exhibit 4.1

--------

 

 

 

BOARDWALK PIPELINES, LP,

 

AS ISSUER,

 

ANY GUARANTORS PARTY HERETO,

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

 

 

as Trustee

 

INDENTURE

 

Dated as of August 21, 2009

 

Debt Securities

 

 

 

 

  

  

  

Exhibit 4.1

--------

CROSS-REFERENCE TABLE

 

	
TIA Section
	
Indenture Section

	
310      (a)
	
7.10

	
(b)
	
7.10

	
(c)
	
N.A.

	
311      (a)
	
7.11

	
(b)
	
7.11

	
(c)
	
N.A.

	
312      (a)
	
5.01

	
(b)
	
5.02

	
(c)
	
5.02

	
313      (a)
	
5.03

	
(b)
	
5.03

	
(c)
	
13.03

	
(d)
	
5.03

	
314      (a)
	
4.05

	
(b)
	
N.A.

	
(c)(1)
	
13.05

	
(c)(2)
	
13.05

	
(c)(3)
	
N.A.

	
(d)
	
N.A.

	
(e)
	
13.05

	
(f)
	
N.A.

	
315      (a)
	
7.01

	
(b)
	
6.07 & 13.03

	
(c)
	
7.01

	
(d)
	
7.01

	
(e)
	
6.08

	
316      (a) (last sentence)
	
1.01

	
(a)(1)(A)
	
6.06

	
(a)(1)(B)
	
6.06

	
(a)(2)
	
9.01(d)

	
(b)
	
6.04

	
(c)
	
5.04

	
317      (a)(1)
	
6.02

	
(a)(2)
	
6.02

	
(b)
	
4.04

	
318      (a)
	
13.07

N.A. means Not Applicable

NOTE:  This Cross-Reference table shall not, for any purpose, be deemed part of this Indenture.

 

 

  

i

  

Exhibit 4.1

--------

TABLE OF CONTENTS

 

 

 

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

	
  
	
Section 1.01  Definitions

	
  
	
Section 1.02  Other Definitions

	
  
	
Section 1.03  Incorporation by Reference of Trust Indenture Act 

	
  
	
Section 1.04  Rules of Construction

 

ARTICLE II

DEBT SECURITIES

 

	
  
	
Section 2.01  Forms Generally

	
  
	
Section 2.02  Form of Trustee’s Certificate of Authentication

	
  
	
Section 2.03  Principal Amount; Issuable in Series

	
  
	
Section 2.04  Execution of Debt Securities

	
  
	
Section 2.05  Authentication and Delivery of Debt Securities

	
  
	
Section 2.06  Denomination of Debt Securities

	
  
	
Section 2.07  Registration of Transfer and Exchange

	
  
	
Section 2.08  Temporary Debt Securities

	
  
	
Section 2.09  Mutilated, Destroyed, Lost or Stolen Debt Securities

	
  
	
Section 2.10  Cancellation of Surrendered Debt Securities

	
  
	
Section 2.11  Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the Holders

	
  
	
Section 2.12  Payment of Interest; Interest Rights Preserved

	
  
	
Section 2.13  Securities Denominated in Dollars

	
  
	
Section 2.14  Wire Transfers

	
  
	
Section 2.15  Securities Issuable in the Form of a Global Security

	
  
	
Section 2.16  Defaulted Interest

	
  
	
Section 2.17  CUSIP Numbers

 

ARTICLE III

REDEMPTION OF DEBT SECURITIES

 

	
  
	
Section 3.01  Applicability of Article

	
  
	
Section 3.02  Notice of Redemption; Selection of Debt Securities

	
  
	
Section 3.03  Payment of Debt Securities Called for Redemption

	
  
	
Section 3.04  Mandatory and Optional Sinking Funds

	
  
	
Section 3.05  Redemption of Debt Securities for Sinking Fund

 

 

ii

 

Exhibit 4.1

--------

ARTICLE IV

PARTICULAR COVENANTS OF THE PARTNERSHIP

 

	
  
	
Section 4.01Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities

	
  
	
Section 4.02Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt Securities

	
  
	
Section 4.03Appointment to Fill a Vacancy in the Office of Trustee

	
  
	
Section 4.04Duties of Paying Agents, etc

	
  
	
Section 4.05SEC Reports; Financial Statements

	
  
	
Section 4.06Compliance Certificate

	
  
	
Section 4.07Further Instruments and Acts

	
  
	
Section 4.08Waiver of Certain Covenants

	
  
	
Section 4.09Statement by Officers as to Default

 

ARTICLE V

HOLDERS’ LISTS AND REPORTS BY THE TRUSTEE

 

	
  
	
Section 5.01Partnership to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of Information

	
  
	
Section 5.02Communications to Holders

	
  
	
Section 5.03Reports by Trustee

	
  
	
Section 5.04Record Dates for Action by Holders

 

ARTICLE VI

REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT

 

	
  
	
Section 6.01Events of Default

	
  
	
Section 6.02Collection of Debt by Trustee, etc.

	
  
	
Section 6.03Application of Moneys Collected by Trustee

	
  
	
Section 6.04Limitation on Suits by Holders

	
  
	
Section 6.05Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default

	
  
	
Section 6.06Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive Default

	
  
	
Section 6.07Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain Circumstances

	
  
	
Section 6.08Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the Trustee

 

 

iii

 

Exhibit 4.1

--------

ARTICLE VII

CONCERNING THE TRUSTEE

 

	
  
	
Section 7.01Certain Duties and Responsibilities

	
  
	
Section 7.02Certain Rights of Trustee

	
  
	
Section 7.03Trustee Not Liable for Recitals in Indenture or in Debt Securities

	
  
	
Section 7.04Trustee, Paying Agent or Registrar May Own Debt Securities

	
  
	
Section 7.05Moneys Received by Trustee to Be Held in Trust

	
  
	
Section 7.06Compensation and Reimbursement

	
  
	
Section 7.07Right of Trustee to Rely on an Officers’ Certificate Where No Other Evidence Specifically Prescribed

	
  
	
Section 7.08Separate Trustee; Replacement of Trustee

	
  
	
Section 7.09Successor Trustee by Merger

	
  
	
Section 7.10Eligibility; Disqualification

	
  
	
Section 7.11Preferential Collection of Claims Against Partnership

	
  
	
Section 7.12Compliance with Tax Laws

 

ARTICLE VIII

CONCERNING THE HOLDERS

 

	
  
	
Section 8.01Evidence of Action by Holders

	
  
	
Section 8.02Proof of Execution of Instruments and of Holding of Debt Securities

	
  
	
Section 8.03Who May Be Deemed Owner of Debt Securities

	
  
	
Section 8.04Instruments Executed by Holders Bind Future Holders

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

	
  
	
Section 9.01Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders

	
  
	
Section 9.02Modification of Indenture with Consent of Holders of Debt Securities

	
  
	
Section 9.03Effect of Supplemental Indentures

	
  
	
Section 9.04Debt Securities May Bear Notation of Changes by Supplemental Indentures

 

ARTICLE X

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

	
  
	
Section 10.01Consolidations and Mergers of the Partnership

	
  
	
Section 10.02Rights and Duties of Successor Partnership

 

ARTICLE XI

 

 

SATISFACTION AND DISCHARGE OF

INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

 

	
  
	
Section 11.01Applicability of Article

	
  
	
Section 11.02Satisfaction and Discharge of Indenture; Defeasance

	
  
	
Section 11.03Conditions of Defeasance

	
  
	
Section 11.04Application of Trust Money

	
  
	
Section 11.05Repayment to Partnership

	
  
	
Section 11.06Indemnity for U.S. Government Obligations

	
  
	
Section 11.07Reinstatement

 

 

iv

 

Exhibit 4.1

--------

ARTICLE XII

[RESERVED]

 

ARTICLE XIII

MISCELLANEOUS PROVISIONS

 

	
  
	
Section 13.01Successors and Assigns of Partnership Bound by Indenture

	
  
	
Section 13.02Acts of Board, Committee or Officer of Successor Partnership Valid

	
  
	
Section 13.03Required Notices or Demands

	
  
	
Section 13.04Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New York

	
  
	
Section 13.05Officers’ Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the Partnership

	
  
	
Section 13.06Payments Due on Legal Holidays

	
  
	
Section 13.07Provisions Required by TIA to Control

	
  
	
Section 13.08Computation of Interest on Debt Securities

	
  
	
Section 13.09Rules by Trustee, Paying Agent and Registrar

	
  
	
Section 13.10No Recourse Against Others

	
  
	
Section 13.11Severability

	
  
	
Section 13.12Effect of Headings

	
  
	
Section 13.13Indenture May Be Executed in Counterparts

	
  
	
Section 13.14Waiver of Jury Trial

	
  
	
Section 13.15Force Majeure

 

ARTICLE XIV

GUARANTEE

 

	
  
	
Section 14.01Unconditional Guarantee

	
  
	
Section 14.02Execution and Delivery of Guarantee

	
  
	
Section 14.03Limitation on Guarantors’ Liability

	
  
	
Section 14.04Release of Guarantors from Guarantee

	
  
	
Section 14.05Guarantor Contribution

 

Annex ANotation of Guarantee

 

  

v

  

Exhibit 4.1

--------

THIS INDENTURE dated as of August 21, 2009 is among Boardwalk Pipelines, LP, a Delaware limited partnership (the “Partnership”), any Guarantors (as defined herein) party hereto, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

 

RECITALS OF THE PARTNERSHIP AND ANY GUARANTORS

 

The Partnership and any Guarantors have duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of the Partnership’s debentures, notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (herein called the “Debt Securities”),
which Debt Securities may be guaranteed by each of the Guarantors, as in this Indenture provided.

 

All things necessary to make this Indenture a legal, valid, and binding agreement of the Partnership and any Guarantors, in accordance with its terms, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH

 

That in order to declare the terms and conditions upon which the Debt Securities are authenticated, issued and delivered, and in consideration of the premises, and of the purchase and acceptance of the Debt Securities by the Holders thereof, the Partnership, any Guarantor and the Trustee covenant and agree with each other, for the benefit
of the respective Holders from time to time of the Debt Securities or any series thereof, as follows:

 

ARTICLE I                      

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01 Definitions

 

.

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with the specified Person. For purposes of this definition, “control,” including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with,” as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the Person, whether through the ownership of voting securities, by agreement or otherwise.  The Trustee may request and may conclusively rely upon an Officers’ Certificate to determine whether any Person is an Affiliate of any specified Person.

 

“Agent” means any Registrar or paying agent.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors, or the law of any other jurisdiction relating to bankruptcy, insolvency, winding up, liquidation, reorganization or relief of debtors.

 

“Board of Directors” means the Board of Directors of the General Partner or any authorized committee of the Board of Directors of the General Partner or any directors and/or officers of the General Partner to whom such Board of Directors or such committee shall have duly delegated its authority to act hereunder.  If
the Partnership shall change its form of entity to other than a limited partnership, the references to the Board of Directors of the General Partner shall mean the Board of Directors (or other comparable governing body) of the Partnership.

 

 

 

 

Exhibit 4.1

--------

“Business Day” means any day other than a Legal Holiday.

 

“capital stock” of any Person means and includes any and all shares, rights to purchase, warrants or options (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) the equity (which includes, but is not limited to, common stock, preferred stock and partnership and
joint venture interests) of such Person (excluding any debt securities that are convertible into, or exchangeable for, such equity).

 

“Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the dated hereof is located at 2 North LaSalle Street, 7th Floor, Chicago, IL 60602, Attention:  Corporate
Trust Administration, or such other address as the Trustee may designate from time to time by notice to the Holders and the Partnership, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Partnership).

 

“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Debt” of any Person at any date means any obligation created or assumed by such Person for the repayment of borrowed money and any guarantee thereof.

 

“Debt Security” or “Debt Securities” has the meaning stated in the first recital of this Indenture and more particularly means any debt security or debt securities, as the case may be, of any series authenticated and delivered under this Indenture.

 

“Default” means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default.

 

“Depositary” means, unless otherwise specified by the Partnership pursuant to either Section 2.03 or 2.15, with respect to Debt Securities of any series issuable or issued in whole or in part in the form of one or more Global Securities, The Depository Trust Company, New York, New York, or any successor thereto registered as
a clearing agency under the Exchange Act or other applicable statute or regulations.

 

“Dollar” or “$” means such currency of the United States as at the time of payment is legal tender for the payment of public and private debts.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute.

 

“Floating Rate Security” means a Debt Security that provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index specified pursuant to Section 2.03.

 

 

2

 

Exhibit 4.1

--------

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

 

“General Partner” means Boardwalk GP, LLC, a Delaware limited liability company and the general partner of Boardwalk GP, LP, the general partner of the Master Partnership.

 

“Global Security” means with respect to any series of Debt Securities issued hereunder, a Debt Security that is executed by the Partnership and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture and any Indentures supplemental
hereto, or resolution of the Board of Directors and set forth in an Officers’ Certificate, which shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all the Outstanding Debt Securities of such series or any portion thereof, in either case having the same terms, including, without limitation, the same original issue date, date or dates on which principal is due and interest rate or method
of determining interest.

 

“guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Debt or other obligation of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (b) entered into for purposes of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term
“guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.  The term “guarantee” used as a verb has a corresponding meaning.

 

“Guarantors” means any Subsidiary of the Partnership and any other Affiliate of the Partnership, including the Master Partnership, who may execute this Indenture, or a supplement hereto, for the purpose of providing a Guarantee of Debt Securities pursuant to this Indenture until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter “Guarantors” shall mean such successor Person.

 

“Holder,” “Holder of Debt Securities” or other similar terms means, a Person in whose name a Debt Security is registered in the Debt Security Register (as defined in Section 2.07(a)).

 

“Indenture” means this instrument as originally executed, or, if amended or supplemented as herein provided, as so amended or supplemented and shall include the form and terms of particular series of Debt Securities as contemplated hereunder, whether or not a supplemental Indenture is entered into with respect thereto.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City of New York, New York or at a Place of Payment are authorized by law, regulation or executive order to remain closed.  If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

 

3

 

Exhibit 4.1

--------

“Lien” means, with respect to any asset, any mortgage, lien, security interest, pledge, charge or other encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law.

 

“Master Partnership” means Boardwalk Pipeline Partners, LP, a Delaware Limited Partnership.

 

“Officer” means, with respect to a Person, the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, Controller, Secretary or any Assistant Secretary of such Person.

 

“Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President or a Vice President, and by the Chief Financial Officer, Controller, Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the General Partner (or if the Partnership shall change its form of entity to
other than a limited partnership or the Partnership’s general partner shall have officers, by Persons, officers, members, agents and others holding positions comparable to those of the foregoing nature, as applicable).

 

“Opinion of Counsel” means a written opinion acceptable to the Trustee from legal counsel.  The counsel may be an employee of or counsel to the Partnership.

 

“Original Issue Discount Debt Security” means any Debt Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01.

 

“Outstanding,” when used with respect to any series of Debt Securities, means, as of the date of determination, all Debt Securities of that series theretofore authenticated and delivered under this Indenture, except:

 

	
  
	
(a)
	
Debt Securities of that series theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

 

	
  
	
(b)
	
Debt Securities of that series for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any paying agent (other than the Partnership) in trust or set aside and segregated in trust by the Partnership (if the Partnership shall act as its own paying agent) for the Holders of such Debt Securities; provided, that, if such Debt Securities are to be redeemed, notice
of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and

 

	
  
	
(c)
	
Debt Securities of that series which have been paid pursuant to Section 2.09 or in exchange for or in lieu of which other Debt Securities have been authenticated and delivered pursuant to this Indenture, other than any such Debt Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debt Securities are held by a bona fide purchaser in whose hands such Debt
Securities are valid obligations of the Partnership;

 

 

4

 

Exhibit 4.1

--------

provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Debt Securities of any series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Debt Securities owned by the Partnership or any other obligor upon the Debt Securities or any Affiliate
of the Partnership or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Debt Securities which a Trust Officer actually knows to be so owned shall be so disregarded.  Debt Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of
the Trustee the pledgee’s right so to act with respect to such Debt Securities and that the pledgee is not the Partnership or any other obligor upon the Debt Securities or an Affiliate of the Partnership or of such other obligor.  In determining whether the Holders of the requisite principal amount of Outstanding Debt Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Debt Security that shall
be deemed to be Outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01.

 

“Partnership” means the Person named as the “Partnership” in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Partnership” shall mean such successor Person.

 

“Partnership Order” means a written request or order signed in the name of the Partnership by the Chairman of the Board, the President or Vice President, a Secretary or Treasurer of the General Partner, and delivered to the Trustee, or if the Partnership shall change its form of entity to other than a limited partnership, by
Persons or officers, members, agents and others holding positions comparable to those of the foregoing nature, as applicable.

 

“Person” means any individual, corporation, partnership, joint venture, limited liability company, incorporated or unincorporated association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or other entity of any kind.

 

“Redemption Date,” when used with respect to any Debt Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

 

“Reporting Failure” means the failure of the Partnership or a Guarantor, as applicable, to file with the Trustee, within 15 days after the Partnership or a Guarantor is required to file the same with the SEC within the time periods specified in the Exchange Act or in the relevant forms thereunder (after giving effect to any
grace period specified under Rule 12b-25 under the Exchange Act), the annual reports, information, documents or other reports that the Partnership or the Guarantor is required to file with the commission pursuant to Section 13 or Section 15(d) of the Exchange Act.

 

 

5

 

Exhibit 4.1

--------

“Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar
to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person's knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended, and any successor statute.

 

“Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such security at the option
of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred).

 

“Subsidiary” of any Person means:

 

	
  
	
(1)
	
any corporation, association or other business entity of which more than 50% of the total voting power of equity interests entitled, without regard to the occurrence of any contingency, to vote in the election of directors, managers, trustees or equivalent Persons thereof is at the time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person
or combination thereof; or

 

	
  
	
(2)
	
in the case of a partnership, more than 50% of the partners’ equity interests, considering all partners’ equity interests as a single class, is at such time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or combination thereof.

 

“TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§77aaa-77bbbb), as in effect on the date of this Indenture as originally executed and, to the extent required by law, as amended.

 

“Trustee” initially means The Bank of New York Mellon Trust Company, N.A., and any other Person or Persons appointed as such from time to time pursuant to Section 7.08, and,
subject to the provisions of Article VII, includes its or their successors and assigns.  If at any time there is more than one such Person, “Trustee” as used with respect to the Debt Securities of any series shall mean the Trustee with respect to the Debt Securities of that series.

 

“United States” means the United States of America (including the States and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction.

 

 

6

 

Exhibit 4.1

--------

“U.S. Government Obligations” means direct obligations of the United States of America, obligations on which the payment of principal and interest is fully guaranteed by the United States of America or obligations or guarantees for the payment of which the full faith and credit of the United States of America is pledged.

 

“Yield to Maturity” means the yield to maturity, calculated at the time of issuance of a series of Debt Securities, or, if applicable, at the most recent redetermination of interest on such series and calculated in accordance with accepted financial practice.

 

Section 1.02 Other Definitions

 

.

 

	
Term
	  	
Defined in Section

	
“Debt Security Register”                                                                               
	  	
2.07

	
“Defaulted Interest”                                                                               
	  	
2.16

	
“Event of Default”                                                                               
	  	
6.01

	
“Funding Guarantor”                                                                               
	  	
14.05

	
“Guarantee”                                                                               
	  	
14.01

	
“Place of Payment”                                                                               
	  	
2.03

	
“Registrar”                                                                               
	  	
2.07

	
“Successor Partnership”                                                                               
	  	
10.01

Section 1.03 Incorporation by Reference of Trust Indenture Act.  Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.

 

All terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

 

Section 1.04 Rules of Construction.  Unless the context otherwise requires:

 

(a) a term has the meaning assigned to it;

 

(b) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(c) “or” is not exclusive;

 

(d) words in the singular include the plural, and in the plural include the singular;

 

(e) all references in this instrument to “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed;

 

(f) the words “herein,” “hereof’ and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 

(g)  “including” means “including without limitation;”

 

 

7

 

Exhibit 4.1

--------

(h) provisions apply to successive events and transactions; and

 

(i) the principal amount of any noninterest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP.

 

ARTICLE II                               

                                  DEBT
SECURITIES

 

Section 2.01 Forms Generally.  The Debt Securities of each series shall be in substantially the form
established without the approval of any Holder by or pursuant to a resolution of the Board of Directors or in one or more Indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as the Partnership may deem appropriate (and, if not contained in a supplemental Indenture entered into
in accordance with Article IX, as are not prohibited by the provisions of this Indenture) or as may be required or appropriate to comply with any law or with any rules made pursuant thereto or with any rules of any securities exchange on which such series of Debt Securities may be listed, or to conform to general usage, or as may, consistently herewith, be determined by the officers executing such Debt Securities as evidenced by their execution of the Debt Securities.

 

The definitive Debt Securities of each series shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the officers executing such Debt Securities, as evidenced by their execution of such Debt Securities.

 

Section 2.02 Form of Trustee’s Certificate of Authentication.  The Trustee’s certificate
of authentication on all Debt Securities authenticated by the Trustee shall be in substantially the following form:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Dated; ______________

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

As Trustee

	
  
	
By:
	 ______________________	 

	
  
	
Authorized Signatory

 

8

 

Exhibit 4.1

--------

Section 2.03 Principal Amount; Issuable in Series.  The aggregate principal amount of Debt Securities
which may be issued, executed, authenticated, delivered and outstanding under this Indenture is unlimited.

 

The Debt Securities may be issued in one or more series in fully registered form.  There shall be established, without the approval of any Holders, in or pursuant to a resolution of the Board of Directors and set forth in an Officers’ Certificate, or established in one or more Indentures supplemental hereto, prior to the
issuance of Debt Securities of any series any or all of the following:

 

(a) the title of the Debt Securities of the series (which shall distinguish the Debt Securities of the series from all other Debt Securities);

 

(b) any limit upon the aggregate principal amount of the Debt Securities of the series which may be authenticated and delivered under this Indenture (except for Debt Securities authenticated and delivered upon registration of transfer
of, or in exchange for, or in lieu of, other Debt Securities of the series pursuant to this Article II);

 

(c) the date or dates on which the principal of and premium, if any, on the Debt Securities of the series are payable;

 

(d) the rate or rates (which may be fixed or variable) at which the Debt Securities of the series shall bear interest, if any, or the method of determining such rate or rates, the date or dates from which such interest shall accrue, the
interest payment dates on which such interest shall be payable, or the method by which such date will be determined, the record dates for the determination of Holders thereof to whom such interest is payable; and the basis upon which interest will be calculated if other than that of a 360-day year of twelve thirty-day months;

 

(e) the place or places, if any, in addition to or instead of the corporate trust office of the Trustee, where the principal of, and premium, if any, and interest on, Debt Securities of the series shall be payable (“Place of Payment”);

 

(f) the price or prices at which, the period or periods within which and the terms and conditions upon which Debt Securities of the series may be redeemed, in whole or in part, at the option of the Partnership or otherwise;

 

(g) whether Debt Securities of the series are entitled to the benefits of any Guarantee of any Guarantors pursuant to this Indenture;

 

(h) the obligation, if any, of the Partnership to redeem, purchase or repay Debt Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof, and the price or prices at which and
the period or periods within which and the terms and conditions upon which Debt Securities of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligations;

 

(i) the terms, if any, upon which the Debt Securities of the series may be convertible into or exchanged for capital stock (which may be represented by depositary shares), other Debt Securities or warrants for capital stock or Debt or
other securities of any kind of the Partnership or any other obligor and the terms and conditions upon which such conversion or exchange shall be effected, including the initial conversion or exchange price or rate, the conversion or exchange period and any other provision in addition to or in lieu of those described herein;

 

 

9

 

Exhibit 4.1

--------

(j) if other than denominations of $1,000 and any integral multiple thereof, the denominations in which Debt Securities of the series shall be issuable;

 

(k) if the amount of principal of or any premium or interest on Debt Securities of the series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts will be determined;

 

(l) if the principal amount payable at the Stated Maturity of Debt Securities of the series will not be determinable as of any one or more dates prior to such Stated Maturity, the amount which will be deemed to be such principal amount
as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any maturity other than the Stated Maturity or which will be deemed to be Outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined);

 

(m) any changes or additions to Article XI, including the addition of additional covenants that may be subject to the covenant defeasance option pursuant to Section 11.02(b);

 

(n) if other than the principal amount thereof, the portion of the principal amount of Debt Securities of the series which shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01 or provable
in bankruptcy pursuant to Section 6.02;

 

(o) the terms, if any, of the transfer, mortgage, pledge or assignment as security for the Debt Securities of the series of any properties, assets, moneys, proceeds, securities or other collateral, including whether certain provisions
of the TIA are applicable and any corresponding changes to provisions of this Indenture as currently in effect;

 

(p) any addition to or change in the Events of Default with respect to the Debt Securities of the series and any change in the right of the Trustee or the Holders to declare the principal of, and premium and interest on, such Debt Securities
due and payable;

 

(q) if the Debt Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions, if any, upon which such Global Security or Securities may be exchanged in whole or
in part for other individual Debt Securities in definitive registered form; and the Depositary for such Global Security or Securities and the form of any legend or legends to be borne by any such Global Security or Securities in addition to or in lieu of the legend referred to in Section 2.15(a);

 

(r) any trustees, authenticating or paying agents, transfer agents or registrars;

 

(s) the applicability of, and any addition to or change in the covenants and definitions currently set forth in this Indenture or in the terms currently set forth in Article X, including conditioning any merger, conveyance, transfer or
lease permitted by Article X upon the satisfaction of any Debt coverage standard by the Partnership and Successor Partnership (as defined in Article X);

 

 

10

 

Exhibit 4.1

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(t) with regard to Debt Securities of the series that do not bear interest, the dates for certain required reports to the Trustee; and

 

(u) any other terms of the Debt Securities of the series (which terms shall not be prohibited by the provisions of this Indenture).

 

All Debt Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such resolution of the Board of Directors and as set forth in such Officers’ Certificate or in any such Indenture supplemental hereto.

 

Section 2.04 Execution of Debt Securities.  The Debt Securities shall be signed on behalf of the Partnership
by one Officer of the General Partner and, if the seal of the General Partner is reproduced thereon, it shall be attested by its Secretary, an Assistant Secretary, a Treasurer or an Assistant Treasurer.  Such signatures upon the Debt Securities may be the manual or facsimile signatures of the present or any future such authorized officers and may be imprinted or otherwise reproduced on the Debt Securities.  The seal of the General Partner, if any, may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Debt Securities.

 

Only such Debt Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, signed manually by the Trustee, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee upon any Debt Security executed by the
General Partner on behalf of the Partnership shall be conclusive evidence that the Debt Security so authenticated has been duly authenticated and delivered hereunder.

 

In case any officer of the General Partner who shall have signed any of the Debt Securities shall cease to be such officer before the Debt Securities so signed shall have been authenticated and delivered by the Trustee, or disposed of by the Partnership, such Debt Securities nevertheless may be authenticated and delivered or disposed of
as though the Person who signed such Debt Securities had not ceased to be such officer of the General Partner; and any Debt Security may be signed on behalf of the General Partner by such Persons as, at the actual date of the execution of such Debt Security, shall be the proper officers of the General Partner, although at the date of such Debt Security or of the execution of this Indenture any such Person was not such officer.

 

Section 2.05 Authentication and Delivery of Debt Securities.  At any time and from time to time after
the execution and delivery of this Indenture, the Partnership may deliver to the Trustee for authentication Debt Securities of any series executed by the Partnership, and the Trustee shall thereupon authenticate and deliver said Debt Securities to or upon a Partnership Order.  In authenticating such Debt Securities, and accepting the additional responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be given, and (subject to Section 7.01) shall be fully protected
in relying upon:

 

 

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Exhibit 4.1

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(a) a copy of any resolution or resolutions of the Board of Directors, certified by the Secretary or Assistant Secretary of the General Partner, authorizing the terms of issuance of any series of Debt Securities;

 

(b) an executed supplemental Indenture, if any;

 

(c) an Officers’ Certificate; and

 

(d) an Opinion of Counsel prepared in accordance with Section 13.05 which shall also state:

 

(i) that the form of such Debt Securities has been established by or pursuant to a resolution of the Board of Directors or by a supplemental Indenture as permitted by Section 2.01 in conformity with the provisions of this Indenture;

 

(ii) that the terms of such Debt Securities have been established by or pursuant to a resolution of the Board of Directors or by a supplemental Indenture as permitted by Section 2.03 in conformity with the provisions of this Indenture;

 

(iii) that such Debt Securities, when authenticated and delivered by the Trustee and issued by the Partnership in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Partnership, enforceable in accordance with their terms except as  the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and  rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general applicability;

 

(iv) that the Partnership has the partnership power to issue such Debt Securities and has duly taken all necessary partnership action with respect to such issuance;

 

(v) that the issuance of such Debt Securities will not contravene the organizational documents of the Partnership or result in any material violation of any of the terms or provisions of any law or regulation or of any material indenture,
mortgage or other agreement known to such counsel by which the Partnership is bound;

 

(vi) that authentication and delivery of such Debt Securities and the execution and delivery of any supplemental Indenture will not violate the terms of this Indenture; and

 

(vii) such other matters as the Trustee may reasonably request.

 

Such Opinion of Counsel need express no opinion as to whether a court in the United States would render a money judgment in a currency other than that of the United States.

 

The Trustee shall have the right to decline to authenticate and deliver any Debt Securities under this Section 2.05 if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the Trustee
in good faith by its board of directors or trustees, executive committee or a trust committee of directors, trustees or Officers (or any combination thereof) shall determine that such action would expose the Trustee to personal liability to existing Holders.

 

 

12

 

Exhibit 4.1

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The Trustee may appoint an authenticating agent reasonably acceptable to the Partnership to authenticate Debt Securities of any series.  Unless limited by the terms of such appointment, an authenticating agent may authenticate Debt Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication
by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as any Registrar, paying agent or agent for service of notices and demands.

 

Unless otherwise provided in the form of Debt Security for any series, each Debt Security shall be dated the date of its authentication.

 

Section 2.06 Denomination of Debt Securities.  Unless otherwise provided in the form of Debt Security
for any series, the Debt Securities of each series shall be issuable only as fully registered Debt Securities in such Dollar denominations as shall be specified or contemplated by Section 2.03.  In the absence of any such specification with respect to the Debt Securities of any series, the Debt Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof.

 

Section 2.07 Registration of Transfer and Exchange.

 

(a) The Partnership shall keep or cause to be kept a register for each series of Debt Securities issued hereunder (hereinafter collectively referred to as the “Debt Security Register”), in which, subject to such reasonable
regulations as it may prescribe, the Partnership shall provide for the registration of all Debt Securities and the transfer of Debt Securities as in this Article II provided.  At all reasonable times the Debt Security Register shall be open for inspection by the Trustee.  Subject to Section 2.15, upon due presentment for registration of transfer of any Debt Security at any office or agency to be maintained by the Partnership in accordance with the provisions of Section 4.02, the Partnership
shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Debt Security or Debt Securities of authorized denominations for a like aggregate principal amount.  In no event may Debt Securities be issued as, or exchanged for, bearer securities.

 

Unless and until otherwise determined by the Partnership by resolution of the Board of Directors, the Debt Security Register shall be kept at the Corporate Trust Office of the Trustee and, for this purpose, the Trustee shall be designated “Registrar.”

 

Debt Securities of any series (other than a Global Security, except as set forth below) may be exchanged for a like aggregate principal amount of Debt Securities of the same series of other authorized denominations.  Subject to Section 2.15, Debt Securities to be exchanged shall be surrendered at the office or agency to be maintained
by the Partnership as provided in Section 4.02, and the Partnership shall execute and the Trustee shall authenticate and deliver in exchange therefor the Debt Security or Debt Securities which the Holder making the exchange shall be entitled to receive.

 

 

13

 

Exhibit 4.1

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(b) All Debt Securities presented or surrendered for registration of transfer, exchange or payment shall (if so required by the Partnership, the Trustee or the Registrar) be duly endorsed or be accompanied by a written instrument or instruments
of transfer, in form satisfactory to the Partnership, the Trustee and the Registrar, duly executed by the Holder or his attorney duly authorized in writing.

 

All Debt Securities issued in exchange for or upon transfer of Debt Securities shall be the valid obligations of the Partnership, evidencing the same debt, and entitled to the same benefits under this Indenture as the Debt Securities surrendered for such exchange or transfer.

 

No service charge shall be made for any exchange or registration of transfer of Debt Securities (except as provided by Section 2.09), but the Partnership may require payment of a sum sufficient to cover any tax, fee, assessment or other governmental charge that may be imposed in relation thereto, other than those expressly provided in
this Indenture to be made at the Partnership’s own expense or without expense or without charge to the Holders.

 

The Partnership shall not be required (i) to issue, register the transfer of or exchange any Debt Securities for a period of 15 days next preceding any mailing of notice of redemption of Debt Securities of such series or (ii) to register the transfer of or exchange any Debt Securities selected, called or being called for redemption.

 

Prior to the due presentation for registration of transfer of any Debt Security, the Partnership, the Guarantors, the Trustee, any paying agent or any Registrar may deem and treat the Person in whose name a Debt Security is registered as the absolute owner of such Debt Security for the purpose of receiving payment of or on account of the
principal of, and premium, if any, and (subject to Section 2.12) interest on, such Debt Security and for all other purposes whatsoever, whether or not such Debt Security is overdue, and none of the Partnership, the Guarantors, the Trustee, any paying agent or any Registrar shall be affected by notice to the contrary.

 

None of the Partnership, the Guarantors, the Trustee, any agent of the Trustee, any paying agent or any Registrar will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

 

Section 2.08 Temporary Debt Securities.  Pending the preparation of definitive Debt Securities of any
series, the Partnership may execute and the Trustee shall authenticate and deliver temporary Debt Securities (printed, lithographed, photocopied, typewritten or otherwise produced) of any authorized denomination, and substantially in the form of the definitive Debt Securities in lieu of which they are issued, in registered form with such omissions, insertions and variations as may be appropriate for temporary Debt Securities, all as may be determined by the Partnership with the concurrence of the Trustee.  Temporary
Debt Securities may contain such reference to any provisions of this Indenture as may be appropriate.  Every temporary Debt Security shall be executed by the Partnership and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Debt Securities.

 

 

14

 

Exhibit 4.1

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If temporary Debt Securities of any series are issued, the Partnership will cause definitive Debt Securities of such series to be prepared without unreasonable delay.  After the preparation of definitive Debt Securities of such series, the temporary Debt Securities of such series shall be exchangeable for definitive Debt Securities
of such series upon surrender of the temporary Debt Securities of such series at the office or agency of the Partnership at a Place of Payment for such series, without charge to the Holder thereof, except as provided in Section 2.07 in connection with a transfer. Upon surrender for cancellation of any one or more temporary Debt Securities of any series, the Partnership shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Debt Securities of the
same series of authorized denominations and of like tenor.  Until so exchanged, temporary Debt Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Debt Securities of such series.

 

Upon any exchange of a portion of a temporary Global Security for a definitive Global Security or for the individual Debt Securities represented thereby pursuant to Section 2.07 or this Section 2.08, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon
the principal amount of such temporary Global Security shall be reduced for all purposes by the amount to be exchanged and endorsed.

 

Section 2.09 Mutilated, Destroyed, Lost or Stolen Debt Securities.  If  (a) any mutilated
Debt Security is surrendered to the Trustee at its corporate trust office or (b) the Partnership and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Debt Security, and there is delivered to the Partnership and the Trustee such security or indemnity as may be required by them to save each of them and any paying agent harmless, and neither the Partnership nor the Trustee receives notice that such Debt Security has been acquired by a bona fide purchaser, then the
Partnership shall execute and, upon a Partnership Order, the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Debt Security, a new Debt Security of the same series of like tenor, form, terms and principal amount, bearing a number not contemporaneously Outstanding.  Upon the issuance of any substituted Debt Security, the Partnership or the Trustee may require the payment of a sum sufficient to cover any tax, fee, assessment or other governmental
charge that may be imposed in relation thereto and any other expenses connected therewith.  In case any Debt Security which has matured or is about to mature or which has been called for redemption shall become mutilated or be destroyed, lost or stolen, the Partnership may, instead of issuing a substituted Debt Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Debt Security) if the applicant for such payment shall furnish the Partnership
and the Trustee with such security or indemnity as either may require to save it harmless from all risk, however remote, and, in case of destruction, loss or theft, evidence to the satisfaction of the Partnership and the Trustee of the destruction, loss or theft of such Debt Security and of the ownership thereof.

 

 

15

 

Exhibit 4.1

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Every substituted Debt Security of any series issued pursuant to the provisions of this Section 2.09 by virtue of the fact that any Debt Security is destroyed, lost or stolen shall constitute an original additional contractual obligation of the Partnership, whether or not the destroyed, lost or stolen Debt Security shall be found at any
time, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Debt Securities of that series duly issued hereunder.  All Debt Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debt Securities, and shall preclude any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted
to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

 

Section 2.10 Cancellation of Surrendered Debt Securities.  All Debt Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to the Partnership or any paying agent or a Registrar, be delivered to the Trustee for cancellation by it, or if surrendered to the Trustee, shall be canceled by it, and no Debt Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.  All canceled Debt Securities held by the Trustee shall be destroyed (subject to the record retention requirements of the Exchange Act) and,
upon written request, certification of their destruction delivered to the Partnership, unless otherwise directed.  On request of the Partnership, the Trustee shall deliver to the Partnership canceled Debt Securities held by the Trustee.  If the Partnership shall acquire any of the Debt Securities, however, such acquisition shall not operate as a redemption or satisfaction of the Debt represented thereby unless and until the same are delivered or surrendered to the Trustee for cancellation.  The
Partnership may not issue new Debt Securities to replace Debt Securities it has redeemed, paid or delivered to the Trustee for cancellation.

 

Section 2.11 Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the Holders.  Nothing
in this Indenture or in the Debt Securities, expressed or implied, shall give or be construed to give to any Person, other than the parties hereto, the Holders or any Registrar or paying agent, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all its covenants, conditions and provisions being for the sole benefit of the parties hereto, the Holders and any Registrar and paying agents.

 

Section 2.12 Payment of Interest; Interest Rights Preserved.

 

(a) Interest on any Debt Security that is payable and is punctually paid or duly provided for on any interest payment date shall be paid to the Person in whose name such Debt Security is registered at the close of business on the regular
record date for such interest notwithstanding the cancellation of such Debt Security upon any transfer or exchange subsequent to the regular record date.  Payment of interest on Debt Securities shall be made at the corporate trust office of the Trustee (except as otherwise specified pursuant to Section 2.03), or at the option of the Partnership, by check mailed to the address of the Person entitled thereto as such address shall appear in the Debt Security Register or, if provided pursuant to Section
2.03 and in accordance with arrangements satisfactory to the Trustee, at the option of the Holder by wire transfer to an account designated by the Holder.

 

 

16

 

Exhibit 4.1

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(b) Subject to the foregoing provisions of this Section 2.12 and Section 2.16, each Debt Security of
a particular series delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Debt Security of the same series shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Debt Security.

 

Section 2.13 Securities Denominated in Dollars.  Except as otherwise specified pursuant to Section 2.03
for Debt Securities of any series, payment of the principal of, and premium, if any, and interest on, Debt Securities of such series will be made in Dollars.

 

Section 2.14 Wire Transfers.  Notwithstanding any other provision to the contrary in this Indenture,
the Partnership may make any payment of moneys required to be deposited with the Trustee on account of principal of, or premium, if any, or interest on, the Debt Securities (whether pursuant to optional or mandatory redemption payments, interest payments or otherwise) by wire transfer in immediately available funds to an account designated by the Trustee before 11:00 a.m., New York City time, on the date such moneys are to be paid to the Holders of the Debt Securities in accordance with the terms hereof.

 

Section 2.15 Securities Issuable in the Form of a Global Security.

 

(a) If the Partnership shall establish pursuant to Sections 2.01 and 2.03 that the Debt Securities of a particular series are to be issued in whole or in part in the form of one or more Global Securities, then the Partnership shall execute
and the Trustee or its agent shall, in accordance with Section 2.05, authenticate and deliver, such Global Security or Securities, which  shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Debt Securities of such series to be represented by such Global Security or Securities, or such portion thereof as the Partnership shall specify in an Officers’ Certificate,  shall be registered in the name of the Depositary for such Global
Security or Securities or its nominee,  shall be delivered by the Trustee or its agent to the Depositary or pursuant to the Depositary’s instruction and  shall bear a legend substantially to the following effect:

 

(b)  “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.”

 

 

17

 

Exhibit 4.1

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or such other legend as may then be required by the Depositary for such Global Security or Securities.

 

(c) Notwithstanding any other provision of this Section 2.15 or of Section 2.07 to the contrary, and subject to the provisions of paragraph (c) below, unless the terms of a Global Security expressly permit such Global Security to be exchanged
in whole or in part for definitive Debt Securities in registered form, a Global Security may be transferred, in whole but not in part and in the manner provided in Section 2.07, only by the Depositary to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the Depositary or another nominee of the Depositary, or by the Depositary or a nominee of the Depositary to a successor Depositary for such Global Security selected or approved by the Partnership, or to a nominee of such
successor Depositary.

 

(i) If at any time the Depositary for a Global Security or Securities notifies the Partnership that it is unwilling or unable to continue as Depositary for such Global Security or Securities or if at any time the Depositary for the Debt
Securities for such series shall no longer be eligible or in good standing under the Exchange Act or other applicable statute, rule or regulation, the Partnership shall appoint a successor Depositary with respect to such Global Security or Securities.  If a successor Depositary for such Global Security or Securities is not appointed by the Partnership within 120 days after the Partnership receives such notice or becomes aware of such ineligibility, the Partnership shall execute, and the Trustee or its
agent, upon receipt of a Partnership Order for the authentication and delivery of such individual Debt Securities of such series in exchange for such Global Security or Securities, will authenticate and deliver, individual Debt Securities of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of the Global Security or Securities in exchange for such Global Security or Securities.

 

(ii) If an Event of Default occurs and the Depositary for a Global Security or Securities notifies the Trustee of its decision to require that the Debt Securities of any series or portion thereof issued or issuable in the form of one
or more Global Securities shall no longer be represented by such Global Security or Securities, the Partnership shall appoint a successor Depositary with respect to such Global Security or Securities.  In such event the Partnership will execute, and the Trustee, upon receipt of a Partnership Order for the authentication and delivery of individual Debt Securities of such series in exchange in whole or in part for such Global Security or Securities, will authenticate and deliver individual Debt Securities
of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such series or portion thereof in exchange for such Global Security or Securities.

 

 

18

 

Exhibit 4.1

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(iii) If specified by the Partnership pursuant to Sections 2.01 and 2.03 with respect to Debt Securities issued or issuable
in the form of a Global Security, the Depositary for such Global Security may surrender such Global Security in exchange in whole or in part for individual Debt Securities of such series of like tenor and terms in definitive form on such terms as are acceptable to the Partnership, the Trustee and such Depositary.  Thereupon the Partnership shall execute, and the Trustee or its agent upon receipt of a Partnership Order for the authentication and delivery of definitive Debt Securities of such series shall
authenticate and deliver, without service charge, to each Person specified by such Depositary a new Debt Security or Securities of the same series of like tenor and terms and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Global Security; and to such Depositary a new Global Security of like tenor and terms and in an authorized denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal amount of Debt Securities delivered to Holders thereof.

 

(iv) In any exchange provided for in any of the preceding three paragraphs, the Partnership will execute and the Trustee or its agent will authenticate and deliver individual Debt Securities. Upon the exchange of the entire principal
amount of a Global Security for individual Debt Securities, such Global Security shall be canceled by the Trustee or its agent.  Except as provided in the preceding paragraph, Debt Securities issued in exchange for a Global Security pursuant to this Section 2.15 shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or the Registrar.  The
Trustee or the Registrar shall deliver such Debt Securities to the Persons in whose names such Debt Securities are so registered.

 

(v) Payments in respect of the principal of and interest on any Debt Securities registered in the name of the Depositary or its nominee will be payable to the Depositary or such nominee in its capacity as the registered owner of such
Global Security.  The Partnership, any Guarantors and the Trustee may treat the Person in whose name the Debt Securities, including the Global Security, are registered as the owner thereof for the purpose of receiving such payments and for any and all other purposes whatsoever.  None of the Partnership, any Guarantors, the Trustee, any Registrar, the paying agent or any agent of the Partnership, any Guarantors or the Trustee will have any responsibility or liability for any aspect of the records
relating to or payments made on account of the beneficial ownership interests of the Global Security by the Depositary or its nominee or any of the Depositary’s direct or indirect participants, or for maintaining, supervising or reviewing any records of the Depositary, its nominee or any of its direct or indirect participants relating to the beneficial ownership interests of the Global Security, the payments to the beneficial owners of the Global Security of amounts paid to the Depositary or its nominee,
or any other matter relating to the actions and practices of the Depositary, its nominee or any of its direct or indirect participants.  None of the Partnership, any Guarantors, the Trustee or any such agent will be liable for any delay by the Depositary, its nominee, or any of its direct or indirect participants in identifying the beneficial owners of the Debt Securities, and the Partnership, any Guarantors and the Trustee may conclusively rely on, and will be protected in relying on, instructions
from the Depositary or its nominee for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Debt Securities to be issued).

 

 

19

 

Exhibit 4.1

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Section 2.16 Defaulted Interest.  Any interest on any Debt Security of a particular series which is
payable, but is not punctually paid or duly provided for, on the dates and in the manner provided in the Debt Securities of such series and in this Indenture (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder thereof on the relevant record date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Partnership, at its election in each case, as provided in clause (i) or (ii) below:

 

(i) The Partnership may elect to make payment of any Defaulted Interest to the Persons in whose names the Debt Securities of such series are registered at the close of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner.  The Partnership shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Debt Security of such series and the date of the proposed payment, and at the same time the Partnership shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the
date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall
promptly notify the Partnership of such special record date and, in the name and at the expense of the Partnership, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage pre-paid, to each Holder thereof at its address as it appears in the Debt Security Register, not less than 15 days prior to such special record date.  Notice of the proposed payment of such Defaulted Interest and the special record date therefor having
been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debt Securities of such series are registered at the close of business on such special record date.

 

(ii) The Partnership may make payment of any Defaulted Interest on the Debt Securities of such series in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debt Securities of such series
may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Partnership to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Section 2.17 CUSIP Numbers.  The Partnership in issuing the Debt Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the accuracy of such numbers either as printed on the Debt Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Debt Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.  The Partnership will promptly notify the Trustee in writing of any change in the “CUSIP” numbers.

 

 

20

 

Exhibit 4.1

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                         ARTICLE III                                

 

REDEMPTION OF DEBT SECURITIES

 

Section 3.01 Applicability of Article.  The provisions of this Article shall be applicable to the Debt
Securities of any series which are redeemable before their Stated Maturity except as otherwise specified as contemplated by Section 2.03 for Debt Securities of such series.

 

Section 3.02 Notice of Redemption; Selection of Debt Securities.  In case the Partnership shall desire
to exercise the right to redeem all or, as the case may be, any part of the Debt Securities of any series in accordance with their terms, by resolution of the Board of Directors or a supplemental Indenture, the Partnership shall fix a date for redemption and shall give notice of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to the Holders of Debt Securities of such series so to be redeemed as a whole or in part, in the manner provided in Section 13.03.  The
notice if given in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice.  In any case, failure to give such notice or any defect in the notice to the Holder of any Debt Security of a series designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debt Security of such series.

 

Each such notice of redemption shall specify (i) the date fixed for redemption, (ii) the redemption price at which Debt Securities of such series are to be redeemed (or the method of calculating such redemption price), (iii) the Place or Places of Payment that payment will be made upon presentation and surrender of such Debt Securities,
(iv) that any interest accrued to the date fixed for redemption will be paid as specified in said notice, (v) that the redemption is for a sinking fund payment (if applicable), (vi) that, unless otherwise specified in such notice, if the Partnership defaults in making such redemption payment, the paying agent is prohibited from making such payment pursuant to the terms of this Indenture, (vii) that on and after said date any interest thereon or on the portions thereof to be redeemed will cease to accrue, (viii)
that in the case of Original Issue Discount Securities original issue discount accrued after the date fixed for redemption will cease to accrue, (ix) the terms of the Debt Securities of that series pursuant to which the Debt Securities of that series are being redeemed and (x) that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Debt Securities of that series.  If less than all the Debt Securities of a series are to be
redeemed the notice of redemption shall specify the certificate numbers of any Debt Securities of that series to be redeemed that are not in global form.  In case any Debt Security of a series is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Debt Security, a new Debt Security or Debt Securities of that series in principal amount equal
to the unredeemed portion thereof, will be issued.

 

 

21

 

Exhibit 4.1

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At least five days before the giving of any notice of redemption, unless the Trustee consents to a shorter period, the Partnership shall give written notice to the Trustee of the Redemption Date, the principal amount of Debt Securities to be redeemed and the series and terms of the Debt Securities pursuant to which such redemption will
occur.  Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Partnership to the effect that such redemption will comply with the conditions herein, and such notice may be revoked at any time prior to the giving of a notice of redemption to the Holders pursuant to this Section 3.02.  If fewer than all the Debt Securities of a series are to be redeemed, the record date relating to such redemption shall be selected by the Partnership and given
in writing to the Trustee, which record date shall be not less than three days after the date of notice to the Trustee.

 

By 11 a.m., New York City time, on the Redemption Date for any Debt Securities, the Partnership shall deposit with the Trustee or with a paying agent (or, if the Partnership is acting as its own paying agent, segregate and hold in trust) an amount of money in Dollars (except as provided pursuant to Section 2.03) sufficient to pay the redemption
price of such Debt Securities or any portions thereof that are to be redeemed on that date, together with any interest accrued to the Redemption Date.

 

If less than all the Debt Securities of like tenor and terms of a series are to be redeemed (other than pursuant to mandatory sinking fund redemptions), the Trustee shall select, on a pro rata basis, by lot or by such other method as in its sole discretion it shall deem appropriate and fair, the Debt Securities of that series or portions
thereof (in multiples of $1,000) to be redeemed.  In any case where more than one Debt Security of such series is registered in the same name, the Trustee in its discretion may treat the aggregate principal amount so registered as if it were represented by one Debt Security of such series.  The Trustee shall promptly notify the Partnership in writing of the Debt Securities selected for redemption and, in the case of any Debt Securities selected for partial redemption, the principal amount
thereof to be redeemed.  If any Debt Security called for redemption shall not be so paid upon surrender thereof on such Redemption Date, the principal, premium, if any, and interest shall bear interest until paid from the Redemption Date at the rate borne by the Debt Securities of that series.  If less than all the Debt Securities of unlike tenor and terms of a series are to be redeemed, the particular Debt Securities to be redeemed shall be selected by the Partnership.  Provisions
of this Indenture that apply to Debt Securities called for redemption also apply to portions of Debt Securities called for redemption.

 

Section 3.03 Payment of Debt Securities Called for Redemption.  If notice of redemption has been given
as provided in Section 3.02, the Debt Securities or portions of Debt Securities of the series with respect to which such notice has been given shall become due and payable on the date and at the Place or Places of Payment stated in such notice at the applicable redemption price, together with any interest accrued to the date fixed for redemption, and on and after said date (unless the Partnership shall default in the payment of such Debt Securities at the applicable redemption price, together with any interest
accrued to said date) any interest on the Debt Securities or portions of Debt Securities of any series so called for redemption shall cease to accrue, and any original issue discount in the case of Original Issue Discount Securities shall cease to accrue.  On presentation and surrender of such Debt Securities at the Place or Places of Payment in said notice specified, the said Debt Securities or the specified portions thereof shall be paid and redeemed by the Partnership at the applicable redemption
price, together with any interest accrued thereon to the date fixed for redemption.

 

 

22

 

Exhibit 4.1

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Any Debt Security that is to be redeemed only in part shall be surrendered at the Place of Payment with, if the Partnership, the Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Partnership, the Registrar and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing, and the Partnership shall execute, and the Trustee shall authenticate and deliver to the Holder of such Debt Security without service charge, a new Debt Security or Debt Securities of the same series, of like tenor and form, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Debt Security so surrendered; except that if a Global Security is so surrendered, the Partnership
shall execute, and the Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion of the principal of the Global Security so surrendered.  In the case of a Debt Security providing appropriate space for such notation, at the option of the Holder thereof, the Trustee, in lieu of delivering a new Debt Security or Debt Securities as aforesaid, may make a notation on
such Debt Security of the payment of the redeemed portion thereof.

 

Section 3.04 Mandatory and Optional Sinking Funds.  The minimum amount of any sinking fund payment provided
for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as an “optional sinking fund payment.”

 

In lieu of making all or any part of any mandatory sinking fund payment with respect to any Debt Securities of a series in cash, the Partnership may at its option (a) deliver to the Trustee Debt Securities of that series theretofore purchased or otherwise acquired by the Partnership or (b) receive credit for the principal amount
of Debt Securities of that series which have been redeemed either at the election of the Partnership pursuant to the terms of such Debt Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Debt Securities, resolution or supplemental Indenture; provided, that such Debt Securities have not been previously so credited.  Such Debt Securities shall be received and credited for such purpose by the Trustee at the redemption price specified in such
Debt Securities, resolution or supplemental Indenture for redemption through operation of the sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly.

 

 

23

 

Exhibit 4.1

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Section 3.05 Redemption of Debt Securities for Sinking Fund.  Not less than 60 days prior to each sinking
fund payment date for any series of Debt Securities, the Partnership will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, any resolution or supplemental Indenture, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Debt Securities of that series pursuant to Section
3.04 (which Debt Securities, if not previously redeemed, will accompany such certificate) and whether the Partnership intends to exercise its right to make any permitted optional sinking fund payment with respect to such series.  Such certificate shall also state that no Event of Default has occurred and is continuing with respect to such series.  Such certificate shall be irrevocable and upon its delivery the Partnership shall be obligated to make the cash payment or payments therein
referred to, if any, by 11 a.m., New York City time, on the next succeeding sinking fund payment date.  Failure of the Partnership to deliver such certificate (or to deliver the Debt Securities specified in this paragraph) shall not constitute a Default, but such failure shall require that the sinking fund payment due on the next succeeding sinking fund payment date for that series shall be paid entirely in cash and shall be sufficient to redeem the principal amount of such Debt Securities subject to
a mandatory sinking fund payment without the option to deliver or credit Debt Securities as provided in Section 3.04 and without the right to make any optional sinking fund payment, if any, with respect to such series.

 

Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused balance of any preceding sinking fund payments made in cash which shall equal or exceed $100,000 (or a lesser sum if the Partnership shall so request) with respect to the Debt Securities of any particular series shall be applied by the Trustee on
the sinking fund payment date on which such payment is made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment date following the date of such payment) to the redemption of such Debt Securities at the redemption price specified in such Debt Securities, resolution or supplemental Indenture for operation of the sinking fund together with any accrued interest to the date fixed for redemption.  Any sinking fund moneys not so applied or allocated by the Trustee to
the redemption of Debt Securities shall be added to the next cash sinking fund payment received by the Trustee for such series and, together with such payment, shall be applied in accordance with the provisions of this Section 3.05.  Any and all sinking fund moneys with respect to the Debt Securities of any particular series held by the Trustee on the last sinking fund payment date with respect to Debt Securities of such series and not held for the payment or redemption of particular Debt Securities
shall be applied by the Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the Debt Securities of that series at its Stated Maturity.

 

The Trustee shall select the Debt Securities to be redeemed upon such sinking fund payment date in the manner specified in the last paragraph of Section 3.02 and the Partnership shall cause notice of the redemption thereof to be given in the manner provided in Section 3.02 except that the notice of redemption shall also state that the
Debt Securities are being redeemed by operation of the sinking fund.  Such notice having been duly given, the redemption of such Debt Securities shall be made upon the terms and in the manner stated in Section 3.03.

 

The Trustee shall not redeem any Debt Securities of a series with sinking fund moneys or mail any notice of redemption of such Debt Securities by operation of the sinking fund for such series during the continuance of a Default in payment of interest on such Debt Securities or of any Event of Default (other than an Event of Default occurring
as a consequence of this paragraph) with respect to such Debt Securities, except that if the notice of redemption of any such Debt Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Debt Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article III.  Except as aforesaid, any moneys in the sinking fund for such series at the time when any such Default
or Event of Default shall occur and any moneys thereafter paid into such sinking fund shall, during the continuance of such Default or Event of Default, be held as security for the payment of such Debt Securities; provided, however, that in case such Default or Event of Default shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date for such Debt Securities on which such moneys may be applied pursuant to the provisions of this Section 3.05.

 

 

24

 

Exhibit 4.1

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ARTICLE IV                                

 

PARTICULAR COVENANTS OF THE PARTNERSHIP

 

Section 4.01 Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities.  The Partnership,
for the benefit of each series of Debt Securities, will duly and punctually pay or cause to be paid the principal of, and premium, if any, and interest on, each of the Debt Securities at the place, at the respective times and in the manner provided herein or in the Debt Securities.  Each installment of interest on any Debt Securities not in global form may at the Partnership’s option be paid by mailing checks for such interest payable to the Person entitled thereto pursuant to Section
2.07(a) to the address of such Person as it appears on the Debt Security Register.

 

Principal of and premium and interest on Debt Securities of any series shall be considered paid on the date due if, by 11 a.m., New York City time, on such date the Trustee or any paying agent holds in accordance with this Indenture money sufficient to pay all principal, premium and interest then due.

 

The Partnership shall pay interest on overdue principal or premium, if any, at the rate specified therefor in the Debt Securities, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful.

 

Section 4.02 Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt Securities.  The
Partnership will maintain in each Place of Payment for any series of Debt Securities an office or agency where Debt Securities of such series may be presented or surrendered for payment, and it shall also maintain (in or outside such Place of Payment) an office or agency where Debt Securities of such series may be surrendered for transfer or exchange and where notices and demands to or upon the Partnership in respect of the Debt Securities of such series and this Indenture may be served.  The Partnership
will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Partnership shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the office of the Trustee where its corporate trust business is principally administered in the United States, and the Partnership hereby appoints the Trustee
as its agent to receive all presentations, surrenders, notices and demands.

 

 

25

 

Exhibit 4.1

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The Partnership may also from time to time designate different or additional offices or agencies to be maintained for such purposes (in or outside of such Place of Payment), and may from time to time rescind any such designation; provided, however, that no such designation or rescission shall in any manner relieve the Partnership of its
obligations described in the preceding paragraph.  The Partnership will give prompt written notice to the Trustee of any such additional designation or rescission of designation and any change in the location of any such different or additional office or agency.

 

Section 4.03 Appointment to Fill a Vacancy in the Office of Trustee.  The Partnership, whenever necessary
to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.08, a Trustee, so that there shall at all times be a Trustee hereunder with respect to each series of Debt Securities.

 

Section 4.04 Duties of Paying Agents, etc.

 

(a) The Partnership shall cause each paying agent, if any, other than the Trustee, to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.04,

 

(i) that it will hold all sums held by it as such agent for the payment of the principal of, and premium, if any, or interest on, the Debt Securities of any series (whether such sums have been paid to it by the Partnership or by any
other obligor on the Debt Securities of such series) in trust for the benefit of the Holders of the Debt Securities of such series;

 

(ii) that it will give the Trustee notice of any failure by the Partnership (or by any other obligor on the Debt Securities of such series) to make any payment of the principal of, and premium, if any, or interest on, the Debt Securities
of such series when the same shall be due and payable; and

 

(iii) that it will at any time during the continuance of an Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held by it as such agent.

 

(b) If the Partnership shall act as its own paying agent, it will, on or before each due date of the principal of, and premium, if any, or interest on, the Debt Securities of any series, set aside, segregate and hold in trust for the
benefit of the Holders of the Debt Securities of such series a sum sufficient to pay such principal, premium, if any, or interest so becoming due.  The Partnership will promptly notify the Trustee of any failure by the Partnership to take such action or the failure by any other obligor on such Debt Securities to make any payment of the principal of, and premium, if any, or interest on, such Debt Securities when the same shall be due and payable.

 

(c) Anything in this Section 4.04 to the contrary notwithstanding, the Partnership may, at any time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by it or any paying agent, as required by this Section 4.04, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Partnership or such paying agent.

 

 

26

 

Exhibit 4.1

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(d) Whenever the Partnership shall have one or more paying agents with respect to any series of Debt Securities, it will, prior to each due date of the principal of, and premium, if any, or interest on, any Debt Securities of such series,
deposit with any such paying agent a sum sufficient to pay the principal, premium or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless any such paying agent is the Trustee) the Partnership will promptly notify the Trustee of its action or failure so to act.

 

(e) Anything in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to the provisions of Section 11.05.

 

Section 4.05 SEC Reports; Financial Statements.

 

The Partnership shall file with the Trustee, within 15 days after the Partnership or any Guarantor is required to file the same with the SEC, copies of the annual reports and of the information, documents, and other reports that the Partnership or such Guarantor is required to file with the SEC pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act of 1934.  Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Partnership’s and any Guarantor’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 4.06.  The Partnership shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee, on or before January 31 in each year, a brief certificate from the principal executive, financial or accounting officer of Boardwalk GP as to his or her knowledge
of the Issuer’s compliance with all conditions and covenants under the Indenture (such compliance to be determined without regard to any period of grace or requirement of notice provided under the Indenture).

 

Section 4.07 Further Instruments and Acts.  The Partnership will, upon request of the Trustee, execute
and deliver such further instruments and do such further acts as may reasonably be necessary or proper to carry out more effectually the purposes of this Indenture.

 

Section 4.08 Waiver of Certain Covenants.  The Partnership and the Guarantors may, with respect to the
Debt Securities of any series, omit in any particular instance to comply with any covenant made applicable to such Debt Securities pursuant to Section 2.03, if, before or after the time for such compliance, the Holders of at least a majority in principal amount of the Outstanding Debt Securities of each series affected, waive such compliance in such instance with such covenant,
but no such waiver shall extend to or affect such covenant except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Partnership and the Guarantors and the duties of the Trustee in respect of any such covenant shall remain in full force and effect.

 

Section 4.09 Statement by Officers as to Default.  The Partnership shall deliver to the Trustee, within
thirty days after the Partnership becomes aware of the occurrence of any Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, an Officers' Certificate setting forth the details of such Event of Default or default and the action which the Partnership proposes to take with respect thereto.

 

 

27

 

Exhibit 4.1

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                             ARTICLE V                                

 

HOLDERS’ LISTS AND REPORTS BY THE TRUSTEE

 

Section 5.01 Partnership to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of Information.  The
Partnership covenants and agrees that it will furnish or cause to be furnished to the Trustee with respect to the Debt Securities of each series:

 

(a) not more than 10 days after each record date with respect to the payment of interest, if any, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders as of such record date, and

 

(b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Partnership of any such request, a list of similar form and contents as of a date not more than 15 days prior to the time such list
is furnished;

 

provided, however, that so long as the Trustee shall be the Registrar, such lists shall not be required to be furnished.

 

The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders (i) contained in the most recent list furnished to it as provided in this Section 5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so acting) hereunder.

 

The Trustee may destroy any list furnished to it as provided in this Section 5.01 upon receipt of a new list so furnished.

 

Section 5.02 Communications to Holders.  Holders may communicate pursuant to Section 312(b) of the TIA
with other Holders with respect to their rights under this Indenture or the Debt Securities.  The Partnership, the Trustee, the Registrar and anyone else shall have the protection of Section 312(c) of the TIA.

 

Section 5.03 Reports by Trustee.  Within 60 days after each January 31, beginning with the first January
31 following the date of this Indenture, and in any event on or before April 1 in each year, the Trustee shall mail to Holders a brief report dated as of such January 31 that complies with TIA Section 313(a); provided, however, that if no event described in TIA Section 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted.  The Trustee also shall comply with TIA Section 313(b).

 

Reports pursuant to this Section 5.03 shall be transmitted by mail:

 

(a) to all Holders, as the names and addresses of such Holders appear in the Debt Security Register; and

 

 

28

 

Exhibit 4.1

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(b) except in the cases of reports under Section 313(b)(2) of the TIA, to each Holder of a Debt Security of any series whose name and address appear in the information preserved at the time by the Trustee in accordance with Section 5.01.

 

A copy of each report at the time of its mailing to Holders shall be filed with the Securities and Exchange Commission and each stock exchange (if any) on which the Debt Securities of any series are listed.  The Partnership agrees to notify promptly the Trustee whenever the Debt Securities of any series become listed on or delisted
from any stock exchange and of any delisting thereof.

 

Section 5.04 Record Dates for Action by Holders.  If the Partnership shall solicit from the Holders
of Debt Securities of any series any action (including the making of any demand or request, the giving of any direction, notice, consent or waiver or the taking of any other action), the Partnership may, at its option, by resolution of the Board of Directors, fix in advance a record date for the determination of Holders of Debt Securities entitled to take such action, but the Partnership shall have no obligation to do so.  Any such record date shall be fixed at the Partnership’s discretion.  If
such a record date is fixed, such action may be sought or given before or after the record date, but only the Holders of Debt Securities of record at the close of business on such record date shall be deemed to be Holders of Debt Securities for the purpose of determining whether Holders of the requisite proportion of Debt Securities of such series Outstanding have authorized or agreed or consented to such action, and for that purpose the Debt Securities of such series Outstanding shall be computed as of such
record date.

 

ARTICLE VI                                

 

REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT

 

Section 6.01 Events of Default.  “Event of Default” with respect to the Debt Securities
of any series means each one of the following events which shall have occurred and be continuing:

 

(a) default in the payment of any installment of interest upon any Debt Securities of that series as and when the same shall become due and payable, and continuance of such default for a period of 30 days; or

 

(b) default in the payment of the principal of or premium, if any, on any Debt Securities of that series as and when the same shall become due and payable, whether at Stated Maturity, upon redemption, by declaration, upon required repurchase
or otherwise; or

 

(c) default in the payment of any sinking fund payment with respect to any Debt Securities of that series as and when the same shall become due and payable; or

 

(d) failure on the part of the Partnership or, if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of a Guarantee by a Guarantor, any of the Guarantors, duly to observe or perform any other of
the covenants or agreements on the part of the Partnership, or if applicable, any of the Guarantors, in the Debt Securities of that series, in any resolution of the Board of Directors authorizing the issuance of that series of Debt Securities, in this Indenture with respect to such series or in any supplemental Indenture with respect to such series (other than a covenant a default in the performance of which is elsewhere in this Section specifically dealt with), continuing for a period of 60 days (or 180 days
in the case of a Reporting Failure) after the date on which written notice specifying such failure and requiring the Partnership, or if applicable, the Guarantors, to remedy the same and stating that such notice is a “Notice of Default” hereunder shall have been given to the Partnership and if applicable, the Guarantors, by the Trustee or to the Partnership and, if applicable, the Guarantors, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Debt Securities of that
series at the time Outstanding; or

 

 

29

 

Exhibit 4.1

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(e) the Partnership or, if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee by a Guarantor, any of the Guarantors, pursuant to or within the meaning of any Bankruptcy Law,

 

(i) commences a voluntary case,

 

(ii) consents to the entry of an order for relief against it in an involuntary case,

 

(iii) consents to the appointment of a Custodian of it or for all or substantially all of its property; or

 

(iv) makes a general assignment for the benefit of its creditors; or

 

(f) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i) is for relief against the Partnership or, if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee by a Guarantor, any of the Guarantors, as debtor in an involuntary case,

 

(ii) appoints a Custodian of the Partnership or, if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee by a Guarantor, any of the Guarantors, or a Custodian for all or substantially
all of the property of the Partnership, or if applicable, any of the Guarantors, or

 

(iii) orders the liquidation of the Partnership or, if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee by a Guarantor, any of the Guarantors,

 

and the order or decree remains unstayed and in effect for 60 days; or

 

(g) if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee by a Guarantor, the Guarantee of any of the Guarantors ceases to be in full force and effect with respect to Debt Securities
of that series (except as otherwise provided in this Indenture) or is declared null and void in a judicial proceeding or any of the Guarantors denies or disaffirms its obligations under this Indenture or such Guarantee; or

 

(h) any other Event of Default provided with respect to Debt Securities of that series;

 

 

30

 

Exhibit 4.1

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(i) provided, however, that the occurrence of any of the events described in the foregoing clause (d) shall not constitute an Event of Default if such occurrence
is the result of changes in generally accepted accounting principles as recognized by the American Institute of Certified Public Accountants at the date as of which this Indenture is executed and a certificate to such effect is delivered to the Trustee by the Partnership’s independent public accountants.

 

(j) If an Event of Default described in clause (a), (b), (c), (d), (g), or (h) with respect to Debt Securities of that series at the time Outstanding occurs with respect to the Partnership or any Guarantor and
is continuing, unless the principal of, premium, if any, and accrued and unpaid interest on all the Debt Securities of that series shall have already become due and payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount of the Debt Securities of that series then Outstanding hereunder, by notice in writing to the Partnership and the Guarantor (and to the Trustee if given by Holders), may declare the principal of (or, if the Debt Securities of that series are Original Issue
Discount Debt Securities, such portion of the principal amount as may be specified in the terms of that series), premium, if any, and interest on all the Debt Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Debt Securities of that series contained to the contrary notwithstanding.  If an Event of Default described in clause (e) or (f) occurs with respect
to the Partnership, then and in each and every such case, unless the principal of and accrued and unpaid interest on all the Debt Securities shall have become due and payable, the principal of (or, if the Debt Securities of that series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms thereof), premium, if any, and interest on all the Debt Securities then Outstanding hereunder shall ipso facto become
and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders, anything in this Indenture or in the Debt Securities contained to the contrary notwithstanding.

 

The Holders of a majority in aggregate principal amount of the Debt Securities of a particular series by written notice to the Trustee may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already rendered and if all existing Events of Default
with respect to that series have been cured or waived except nonpayment of principal, premium, if any, or interest that has become due solely because of acceleration.  Upon any such rescission, the parties hereto shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the parties hereto shall continue as though no such proceeding had been taken.

 

Section 6.02 Collection of Debt by Trustee, etc.  If an Event of Default occurs and is continuing, the
Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid or enforce the performance of any provision of the Debt Securities of the affected series or this Indenture, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment or final decree against any of the Guarantors or the Partnership or any other obligor upon the
Debt Securities of such series (and collect in the manner provided by law out of the property of any of the Guarantors or the Partnership or any other obligor upon the Debt Securities of such series wherever situated the moneys adjudged or decreed to be payable).

 

 

31

 

Exhibit 4.1

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In case there shall be pending proceedings for the bankruptcy or for the reorganization of any of the Guarantors or the Partnership or any other obligor upon the Debt Securities of any series under any Bankruptcy Law, or in case a Custodian shall have been appointed for its property, or in case of any other similar judicial proceedings
relative to any of the Guarantors or the Partnership or any other obligor upon the Debt Securities of any series, its creditors or its property, the Trustee, irrespective of whether the principal of Debt Securities of any series shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file
and prove a claim or claims for the whole amount of principal, premium, if any, and interest (or, if the Debt Securities of such series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of such series) owing and unpaid in respect of the Debt Securities of such series, and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee,
its agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or willful misconduct) and of the Holders thereof allowed in any such judicial proceedings relative to any of the Guarantors or the Partnership, or any other obligor upon the Debt Securities of such series, its creditors or its property, and to collect and receive any moneys or other property payable or deliverable on any such claims, and
to distribute all amounts received with respect to the claims of such Holders and of the Trustee on their behalf, and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of such Holders to make payments to the Trustee, and, in the event that the Trustee shall consent to the making of payments directly to such Holders, to pay to the Trustee such amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other
reasonable expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or willful misconduct.

 

All rights of action and of asserting claims under this Indenture, or under any of the Debt Securities of any series, may be enforced by the Trustee without the possession of any such Debt Securities, or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any recovery of judgment (except for any amounts payable to the Trustee pursuant to Section 7.06) shall be for the ratable benefit of the Holders of all the Debt Securities in respect of which such action was taken.

 

In case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether
for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

 

32

 

Exhibit 4.1

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Section 6.03 Application of Moneys Collected by Trustee.  Any moneys or other property collected by
the Trustee pursuant to Section 6.02 with respect to Debt Securities of any series shall be applied, in the order following, at the date or dates fixed by the Trustee for the distribution of such moneys or other property, upon presentation of the several Debt Securities of such series in respect of which moneys or other property have been collected, and the notation thereon of the payment, if only partially
paid, and upon surrender thereof if fully paid:

 

FIRST:  To the payment of all money due the Trustee pursuant to Section 7.06;

 

SECOND:  In case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall not have become due, to the payment of interest on the Debt Securities of such series in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has
been collected by the Trustee) upon the overdue installments of interest at the rate or Yield to Maturity (in the case of Original Issue Discount Debt Securities) borne by the Debt Securities of such series, such payments to be made ratably to the Persons entitled thereto, without discrimination or preference;

 

THIRD:  In case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall have become due, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Debt Securities of such series for principal and premium, if any, and interest, with interest
on the overdue principal and premium, if any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the rate or Yield to Maturity (in the case of Original Issue Discount Debt Securities) borne by the Debt Securities of such series; and, in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon the Debt Securities of such series, then to the payment of such principal and premium, if any, and interest, without preference
or priority of principal and premium, if any, over interest, or of interest over principal and premium, if any, or of any installment of interest over any other installment of interest, or of any Debt Security of such series over any Debt Security of such series, ratably to the aggregate of such principal and premium, if any, and interest; and

 

FOURTH:  The remainder, if any, shall be paid to the Guarantors or the Partnership, as applicable, its successors or assigns, , or as a court of competent jurisdiction may direct.

 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.03.  At least 15 days before such record date, the Partnership shall mail to each Holder and the Trustee a notice that states the record date, the payment date and amount to be paid.

 

 

33

 

Exhibit 4.1

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Section 6.04 Limitation on Suits by Holders.  No Holder of any Debt Security of any series shall have
any right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise, upon or under or with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice of an Event of Default with respect to Debt Securities of that same series and of the continuance thereof and unless the Holders of not less than
25% in aggregate principal amount of the Outstanding Debt Securities of that series shall have made written request upon the Trustee to institute such action or proceedings in respect of such Event of Default in its own name as Trustee hereunder and shall have offered to the Trustee such indemnity or security as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity or security
shall have failed to institute any such action or proceedings and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.06; it being understood and intended, and being expressly covenanted by the Holder of every Debt Security with every other Holder and the Trustee, that no one or more Holders shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any Holders,
or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all such Holders.  For the protection and enforcement of the provisions of this Section 6.04, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

Notwithstanding any other provision in this Indenture, however, the right of any Holder of any Debt Security to receive payment of the principal of, and premium, if any, and (subject to Section 2.12) interest on, such Debt Security, on or after the respective due dates expressed in such Debt Security, and to institute suit for the enforcement
of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.

 

Section 6.05 Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default.  All
powers and remedies given by this Article VI to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any Holder to exercise any right or power accruing upon any Default occurring and
continuing as aforesaid, shall impair any such right or power, or shall be construed to be a waiver of any such Default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article VI or by law to the Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders.

 

 

34

 

Exhibit 4.1

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Section 6.06 Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive Default.  The
Holders of not less than a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or of exercising any right, trust or power conferred on the Trustee, with respect to the Debt Securities of such series; provided, however, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture, and that subject
to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel shall determine that the action so directed may not lawfully be taken or is inconsistent with any provision of this Indenture, or if the Trustee shall by a responsible officer or officers determine that the action so directed would involve it in personal liability or would be unduly prejudicial to Holders of Debt Securities of such series not taking part in such direction;
and provided, further, however, that nothing in this Indenture contained shall impair the right of the Trustee to take any action deemed proper by the Trustee and which is not inconsistent with such direction by such Holders.  The Holders of not less than a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding may on behalf of the Holders of all the Debt Securities of that series waive any past Default or Event of Default and its consequences for that series,
except a Default or Event of Default in the payment of the principal of, and premium, if any, or interest on, any of the Debt Securities and a Default or Event of Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Holder affected thereby.  In case of any such waiver, such Default shall cease to exist, any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture, and the Guarantors, the Partnership,
the Trustee and the Holders of the Debt Securities of that series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.

 

Section 6.07 Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain Circumstances.  The
Trustee shall, within 90 days after the occurrence of an Event of Default, or if later, within 30 days after the Trustee obtains actual knowledge of the Event of Default, with respect to a series of Debt Securities give to the Holders thereof, in the manner provided in Section 13.03, notice of all Events of Default with respect to such series known to the Trustee, unless such Events of Default shall have been cured or waived before the giving of such notice; provided, that, except in the case of an Event of Default
in the payment of the principal of, or premium, if any, or interest on, any of the Debt Securities of such series or in the making of any sinking fund payment with respect to the Debt Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a committee of directors or responsible officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders thereof.

 

Section 6.08 Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the Trustee.  All
parties to this Indenture agree, and each Holder of any Debt Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit in the manner and to the extent provided in the TIA, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 6.08 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 25 percent in principal amount of the Outstanding Debt Securities of that series or to any
suit instituted by any Holder for the enforcement of the payment of the principal of, or premium, if any, or interest on, any Debt Security on or after the due date for such payment expressed in such Debt Security.

 

 

35

 

Exhibit 4.1

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                             ARTICLE VII                                

CONCERNING THE TRUSTEE

 

Section 7.01 Certain Duties and Responsibilities.  The Trustee, prior to the occurrence of an Event
of Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture.  In case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct
of his own affairs.

 

No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, its own bad faith or its own willful misconduct, except that:

 

(a) this paragraph shall not be construed to limit the effect of the first paragraph of this Section 7.01;

 

(b) prior to the occurrence of an Event of Default with respect to the Debt Securities of a series and after the curing or waiving of all Events of Default with respect to such series which may have occurred:

 

(i) the duties and obligations of the Trustee with respect to Debt Securities of any series shall be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable except for the performance of such
duties and obligations with respect to such series as are specifically set forth in this Indenture, and no implied covenants or obligations with respect to such series shall be read into this Indenture against the Trustee;

 

(ii) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture; but the Trustee shall examine the evidence furnished to it pursuant to Sections 4.05 and 4.06 to determine whether or not such evidence conforms to the requirement of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein);

 

(iii) the Trustee shall not be liable for an error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iv) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it with respect to Debt Securities of any series in good faith in accordance with the direction of the Holders of not less than a majority
in aggregate principal amount of the Outstanding Debt Securities of that series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to Debt Securities of such series.

 

 

36

 

Exhibit 4.1

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None of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any personal financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

 

Section 7.02 Certain Rights of Trustee.  Except as otherwise provided in Section
7.01:

 

(a) the Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note
or other paper or document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b) any request, direction, order or demand of the Partnership mentioned herein shall be sufficiently evidenced by a Partnership Order (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of
the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the General Partner;

 

(c) the Trustee may consult with counsel of its selection, and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder
in good faith and in accordance with such advice or Opinion of Counsel;

 

(d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders of Debt Securities of any series pursuant to the provisions of
this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which may be incurred therein or thereby;

 

(e) the Trustee shall not be liable for any action taken, suffered, or omitted by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

 

(f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval or other paper
or document, unless requested in writing to do so by the Holders of a majority in aggregate principal amount of the then Outstanding Debt Securities of a series affected by such matter; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is not, in the opinion of the Trustee, reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee
may require reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding, and the reasonable expense of every such investigation shall be paid by the Partnership or, if paid by the Trustee, shall be repaid by the Partnership upon demand;

 

 

37

 

Exhibit 4.1

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(g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part
of any agent or attorney appointed by it with due care hereunder;

 

(h) in no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised
of the likelihood of such loss or damage and regardless of the form of action;

 

(i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received
by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Debt Securities and this Indenture;

 

(j) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder; and

 

(k) the Trustee may request that the Partnership deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

 

Section 7.03 Trustee Not Liable for Recitals in Indenture or in Debt Securities.  The recitals contained
herein, in the Debt Securities (except the Trustee’s certificate of authentication) shall be taken as the statements of the Partnership, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Debt Securities of any series, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Debt Securities and perform its obligations
hereunder, and that the statements made by it or to be made by it in a Statement of Eligibility and Qualification on Form T-1 supplied to the Partnership are true and accurate.  The Trustee shall not be accountable for the use or application by the Partnership of any of the Debt Securities or of the proceeds thereof.

 

 

38

 

Exhibit 4.1

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Section 7.04 Trustee, Paying Agent or Registrar May Own Debt Securities.  The Trustee or any paying
agent or Registrar, in its individual or any other capacity, may become the owner or pledgee of Debt Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential claims may otherwise deal with the Partnership with the same rights it would have if it were not Trustee, paying agent or Registrar.

 

Section 7.05 Moneys Received by Trustee to Be Held in Trust.  Subject to the provisions of Section 11.05,
all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for interest on any moneys received by it hereunder.  So long as no Event of Default shall have occurred and be continuing, all interest allowed on any such moneys shall be paid from time to time to the Partnership upon a Partnership
Order.

 

Section 7.06 Compensation and Reimbursement.  The Partnership covenants and agrees to pay in Dollars
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), and, except as otherwise expressly provided herein, the Partnership will pay or reimburse in Dollars the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents, attorneys and counsel and of all Persons not regularly in its employ), including without limitation, Section 6.02, except any such expense, disbursement or advances as shall be determined to have been caused by its negligence or willful misconduct.  The Partnership also covenants to indemnify in Dollars the Trustee for, and to hold it harmless against, any loss, damage, claims, liability or expense
incurred without negligence or willful misconduct on the part of the Trustee, arising out of or in connection with the acceptance or administration of this trust or trusts hereunder, including the reasonable costs and expenses of defending itself against any claim of liability in connection with the exercise or performance of any of its powers or duties hereunder.  The obligations of the Partnership under this Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional Debt hereunder and shall survive the satisfaction, termination and discharge of this Indenture.  The Partnership and the Holders agree that such additional Debt shall be secured by a Lien prior to that of the Debt Securities upon all property and funds held or collected by the Trustee, as such, except funds held in trust for the payment of principal of, and premium, if any, or interest on, particular Debt Securities.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(e) or (f) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.07 Right of Trustee to Rely on an Officers’ Certificate Where No Other Evidence Specifically Prescribed.  Except
as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee and such certificate, in the absence of negligence or willful misconduct on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.

 

 

39

 

Exhibit 4.1

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Section 7.08 Separate Trustee; Replacement of Trustee.  The Partnership may, but need not, appoint a
separate Trustee for any one or more series of Debt Securities.  The Trustee may resign with respect to one or more or all series of Debt Securities at any time by giving notice to the Partnership.  The Holders of a majority in principal amount of the Debt Securities of a particular series may remove the Trustee for such series and only such series by so notifying the Trustee and may appoint a successor Trustee.  The Partnership shall remove the Trustee if:

 

(a) the Trustee fails to comply with Section 7.10;

 

(b) the Trustee is adjudged bankrupt or insolvent;

 

(c) a Custodian takes charge of the Trustee or its property; or

 

(d) the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns, is removed by the Partnership or by the Holders of a majority in principal amount of the Debt Securities of a particular series and such Holders do not reasonably promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein
as the retiring Trustee), the Partnership shall promptly appoint a successor Trustee.  No resignation or removal of the Trustee and no appointment of a successor Trustee shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of this Section 7.08.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Partnership.  Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.  The
successor Trustee shall mail a notice of its succession to Holders of Debt Securities of each applicable series.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the Lien provided for in Section 7.06.

 

If a successor Trustee does not take office within 60 days after the retiring Trustee gives notice of resignation or is removed, the retiring Trustee or the Holders of 25% in principal amount of the Debt Securities of any applicable series may petition any court of competent jurisdiction, at the expense of the Partnership, for the appointment
of a successor Trustee for the Debt Securities of such series.

 

If the Trustee fails to comply with Section 7.10, any Holder of Debt Securities of any applicable series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee for the Debt Securities of such series.

 

 

40

 

Exhibit 4.1

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Notwithstanding the replacement of the Trustee pursuant to this Section 7.08, the Partnership’s obligations under Section 7.06 shall continue for the benefit of the retiring Trustee.

 

In the case of the appointment hereunder of a separate or successor Trustee with respect to the Debt Securities of one or more series, the Partnership, any retiring Trustee and each successor or separate Trustee with respect to the Debt Securities of any applicable series shall execute and deliver an Indenture supplemental hereto (i) which
shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of any retiring Trustee with respect to the Debt Securities of any series as to which any such retiring Trustee is not retiring shall continue to be vested in such retiring Trustee and (ii) that shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one trustee, it
being understood that nothing herein or in such supplemental Indenture shall constitute such Trustees co-trustees of the same trust and that each such separate, retiring or successor Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee.

 

Section 7.09 Successor Trustee by Merger.  If the Trustee consolidates with, merges or converts into,
or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation or banking association without any further act shall be the successor Trustee.

 

In case at the time such successor or successors to the Trustee by merger, conversion, consolidation or transfer shall succeed to the trusts created by this Indenture any of the Debt Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor
Trustee, and deliver such Debt Securities so authenticated; and in case at that time any of the Debt Securities shall not have been authenticated, any successor to the Trustee may authenticate such Debt Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debt Securities or in this Indenture provided that the certificate of the Trustee shall have.

 

Section 7.10 Eligibility; Disqualification.  The Trustee shall at all times satisfy the requirements
of Section 310(a) of the TIA.  The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition.  No obligor upon the Debt Securities of a particular series or Person directly or indirectly controlling, controlled by or under common control with such obligor shall serve as Trustee for the Debt Securities of such series.  The Trustee shall comply with Section 310(b) of the TIA; provided, however, that
there shall be excluded from the operation of Section 310(b)(1) of the TIA this Indenture or any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Partnership are outstanding if the requirements for such exclusion set forth in Section 310(b)(1) of the TIA are met.

 

Section 7.11 Preferential Collection of Claims Against Partnership.  The Trustee shall comply with Section
311(a) of the TIA, excluding any creditor relationship listed in Section 311(b) of the TIA.  A Trustee who has resigned or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein.

 

 

41

 

Exhibit 4.1

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Section 7.12 Compliance with Tax Laws.  The Trustee hereby agrees to comply with all U.S. Federal income
tax information reporting and withholding requirements applicable to it with respect to payments of premium (if any) and interest on the Debt Securities, whether acting as Trustee, Registrar, paying agent or otherwise with respect to the Debt Securities.

 

                            ARTICLE VIII                                

CONCERNING THE HOLDERS

 

Section 8.01 Evidence of Action by Holders.  Whenever in this Indenture it is provided that the Holders
of a specified percentage in aggregate principal amount of the Debt Securities of any or all series may take action (including the making of any demand or request, the giving of any direction, notice, consent or waiver or the taking of any other action) the fact that at the time of taking any such action the Holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Holders in Person or by agent or proxy appointed
in writing, (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly called and held in accordance with the provisions of Section 5.02, (c) by a combination of such instrument or instruments and any such record of such a meeting of Holders or (d) in the case of Debt Securities evidenced by a Global Security, by any electronic transmission or other message, whether or not in written format, that complies with the Depositary’s applicable procedures.

 

Section 8.02 Proof of Execution of Instruments and of Holding of Debt Securities.  Subject to the provisions
of Sections 7.01, 7.02 and 13.09, proof of the execution of any instrument by a Holder or his agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The ownership of Debt Securities of any series shall be proved by the Debt Security Register
or by a certificate of the Registrar for such series. The Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem necessary.

 

Section 8.03 Who May Be Deemed Owner of Debt Securities.  Prior to due presentment for registration
of transfer of any Debt Security, the Partnership, the Guarantors, the Trustee, any paying agent and any Registrar may deem and treat the Person in whose name any Debt Security shall be registered upon the books of the Partnership as the absolute owner of such Debt Security (whether or not such Debt Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of and premium, if any, and (subject to Section
2.12) interest on such Debt Security and for all other purposes, and none of the Partnership, the Guarantors or the Trustee nor any paying agent nor any Registrar shall be affected by any notice to the contrary; and all such payments so made to any such Holder for the time being, or upon his order, shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debt Security.

 

 

42

 

Exhibit 4.1

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None of the Partnership, the Guarantors, the Trustee, any paying agent or any Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.

 

Section 8.04 Instruments Executed by Holders Bind Future Holders.  At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series specified in this Indenture in connection with such action and subject to the following paragraph, any Holder of a Debt Security which is shown by the evidence to be included in the Debt Securities the Holders of which have consented to such action may, by filing written notice with the Trustee at its corporate trust office
and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Debt Security.  Except as aforesaid any such action taken by the Holder of any Debt Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Debt Security and of any Debt Security issued upon transfer thereof or in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made upon such Debt Security or such other
Debt Securities.  Any action taken by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series specified in this Indenture in connection with such action shall be conclusively binding upon the Partnership, the Guarantors, the Trustee and the Holders of all the Debt Securities of such series.

 

The Partnership may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Debt Securities entitled to give their consent or take any other action required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then notwithstanding the immediately preceding paragraph,
those Persons who were Holders of Debt Securities at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders of Debt Securities after such record date.  No such consent shall be valid or effective for more than 120 days after such record date unless the consent of the Holders of the percentage in aggregate principal amount
of the Debt Securities of such series specified in this Indenture shall have been received within such 120-day period.

 

                   ARTICLE IX                                

SUPPLEMENTAL INDENTURES

 

Section 9.01 Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders.  The
Partnership and any Guarantors, when authorized by resolutions of the Board of Directors, and the Trustee may from time to time and at any time, without the consent of Holders, enter into an Indenture or Indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of the execution thereof) for one or more of the following purposes:

 

(a) to evidence the succession pursuant to Article X of another Person to the Partnership, or successive successions, and the assumption by the Successor Partnership (as defined in Section 10.01) of the covenants, agreements and obligations
of the Partnership in this Indenture and in the Debt Securities;

 

 

43

 

Exhibit 4.1

--------

(b) to surrender any right or power herein conferred upon the Partnership or the Guarantors, to add to the covenants of the Partnership or the Guarantors such further covenants, restrictions, conditions or provisions for the protection
of the Holders of all or any series of Debt Securities (and if such covenants are to be for the benefit of less than all series of Debt Securities, stating that such covenants are expressly being included solely for the benefit of such series) as the Board of Directors shall consider to be for the protection of the Holders of such Debt Securities, and to make the occurrence, or the occurrence and continuance, of a Default in any of such additional covenants, restrictions, conditions or provisions a Default or
an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture; provided, that in respect of any such additional covenant, restriction, condition or provision such supplemental Indenture may provide for a particular period of grace after Default (which period may be shorter or longer than that allowed in the case of other Defaults) or may provide for an immediate enforcement upon such Default or may limit the remedies available to the Trustee upon such Default
or may limit the right of the Holders of a majority in aggregate principal amount of any or all series of Debt Securities to waive such Default;

 

(c) to cure any ambiguity or omission or to correct or supplement any provision contained herein, in any supplemental Indenture or in any Debt Securities of any series that may be defective or inconsistent with any other provision contained
herein, in any supplemental Indenture or in the Debt Securities of such series; to convey, transfer, assign, mortgage or pledge any property to or with the Trustee, or to make such other provisions in regard to matters or questions arising under this Indenture as shall not adversely affect the interests of any Holders of Debt Securities of any series;

 

(d) to permit the qualification of this Indenture or any Indenture supplemental hereto under the TIA as then in effect, except that nothing herein contained shall permit or authorize the inclusion in any Indenture supplemental hereto
of the provisions referred to in Section 316(a)(2) of the TIA;

 

(e) to permit or facilitate the issuance of Debt Securities of any series in uncertificated form;

 

(f) to reflect the release of any Guarantor in accordance with Article XIV;

 

(g) to add Guarantors with respect to any or all of the Debt Securities or to secure any or all of the Debt Securities or the Guarantee;

 

(h) to make any change that does not adversely affect the rights hereunder of any Holder;

 

(i) to add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Debt Securities; provided, however, that any such addition, change or elimination not otherwise permitted under this Section
9.01 shall neither apply to any Debt Security of any series created prior to the execution of such supplemental Indenture and entitled to the benefit of such provision nor  modify the rights of the Holder of any such Debt Security with respect to such provision or  shall become effective only when there is no such Debt Security Outstanding;

 

 

44

 

Exhibit 4.1

--------

(j) to evidence and provide for the acceptance of appointment hereunder by a successor or separate Trustee with respect to the Debt Securities of one or more series and to add to or change any of the provisions of this Indenture as shall
be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; and

 

(k) to establish the form or terms of Debt Securities of any series as permitted by Sections 2.01 and 2.03.

 

The Trustee is hereby authorized to join with the Partnership and the Guarantors in the execution of any such supplemental Indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee
shall not be obligated to enter into any such supplemental Indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental Indenture authorized by the provisions of this Section 9.01 may be executed by the Partnership, the Guarantors and the Trustee without the consent of the Holders of any of the Debt Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

 

Section 9.02 Modification of Indenture with Consent of Holders of Debt Securities.  Without notice to
any Holder but with the consent (evidenced as provided in Section 8.01) of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series affected by such supplemental Indenture (including consents obtained in connection with a tender offer or exchange offer for any such series of Debt Securities), the Partnership and the Guarantors, when authorized by resolutions of the Board of Directors, and the Trustee may from time to time and at any time enter into
an Indenture or Indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of execution thereof) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental Indenture or of modifying in any manner the rights of the Holders of the Debt Securities of such series; provided, that no such supplemental Indenture, without the consent of the Holders of each Debt Security so affected, shall:
reduce the percentage in principal amount of Debt Securities of any series whose Holders must consent to an amendment;  reduce the rate of or extend the time for payment of interest on any Debt Security;  reduce the principal of or extend the Stated Maturity of any Debt Security;  reduce any premium payable upon the redemption of any Debt Security or change the time at which any Debt Security may or shall be redeemed in accordance with Article III;  make any Debt Security
payable in currency other than the Dollar; impair the right of any Holder to receive payment of premium, if any, principal of and interest on such Holder’s Debt Securities on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Debt Securities; release any security that may have been granted in respect of the Debt Securities, other than in accordance with this Indenture; make any change in Section 6.06 or this Section
9.02; or, except as provided in Section 11.02(b) or Section 14.04, release the Guarantors other than as provided in this Indenture or modify the Guarantee in any manner adverse to the Holders.

 

 

45

 

Exhibit 4.1

--------

A supplemental Indenture which changes or eliminates any covenant or other provision of this Indenture which has been expressly included solely for the benefit of one or more particular series of Debt Securities or which modifies the rights of the Holders of Debt Securities of such series with respect to such covenant or other provision,
shall be deemed not to affect the rights under this Indenture of the Holders of Debt Securities of any other series.

 

Upon the request of the Partnership and the Guarantors, accompanied by a copy of resolutions of the Board of Directors authorizing the execution of any such supplemental Indenture, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Partnership in the execution of such
supplemental Indenture unless such supplemental Indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental Indenture.

 

It shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed supplemental Indenture, but it shall be sufficient if such consent shall approve the substance thereof.

 

After an amendment under this Section 9.02 requiring the consent of the Holders of any series of Debt Securities becomes effective, the Partnership shall mail to Holders of that series of Debt Securities of each series affected thereby a notice briefly describing such amendment.  The failure to give such notice to any such Holders,
or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.02 with respect to other Holders.

 

Section 9.03 Effect of Supplemental Indentures. Upon the execution of any supplemental Indenture pursuant to the
provisions of this Article IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Partnership, the Guarantors and the Holders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental Indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

 

The Trustee, subject to the provisions of Sections 7.01 and 7.02, shall receive an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized
as permitted by this Indenture as conclusive evidence that any such supplemental Indenture complies with the provisions of this Article IX.

 

Section 9.04 Debt Securities May Bear Notation of Changes by Supplemental Indentures.  Debt Securities
of any series authenticated and delivered after the execution of any supplemental Indenture pursuant to the provisions of this Article IX may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental Indenture.  New Debt Securities of any series so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental Indenture may be prepared
and executed by the Partnership, authenticated by the Trustee and delivered in exchange for the Debt Securities of such series then Outstanding.  Failure to make the appropriate notation or to issue a new Debt Security of such series shall not affect the validity of such amendment.

 

 

46

 

Exhibit 4.1

--------

                   ARTICLE X                                

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

Section 10.01 Consolidations and Mergers of the Partnership.  The Partnership shall not consolidate
or amalgamate with or merge with or into any Person, or sell, convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person, whether in a single transaction or a series of related transactions, unless: (a) either (i) the Partnership shall be the surviving Person in the case of a merger or (ii) the resulting, surviving or transferee Person if other than the Partnership (the “Successor Partnership”), shall be a partnership, limited liability company
or corporation organized and existing under the laws of the United States, any State thereof or the District of Columbia and the Successor Partnership shall expressly assume, by an Indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Partnership under this Indenture and the Debt Securities according to their tenor; (b) immediately after giving effect to such transaction or series of transactions (and treating any Debt which
becomes an obligation of the Successor Partnership or any Subsidiary of the Partnership as a result of such transaction as having been incurred by the Successor Partnership or such Subsidiary at the time of such transaction or series of transactions), no Default or Event of Default would occur or be continuing; (c) if the Partnership is not the continuing Person, then each Guarantor, unless it has become the Successor Partnership, shall confirm that its Guarantee shall continue to apply to the obligations
under the Debt Securities and this Indenture; and (d) the Partnership shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger or disposition and such supplemental Indenture (if any) comply with this Indenture.

 

Section 10.02 Rights and Duties of Successor Partnership.  In case of any consolidation, amalgamation
or merger where the Partnership is not the continuing Person, or disposition of all or substantially all of the assets of the Partnership in accordance with Section 10.01, the Successor Partnership shall succeed to and be substituted for the Partnership with the same effect as if it had been named herein as the respective party to this Indenture, and the predecessor entity shall be released from all liabilities and obligations under this Indenture and the Debt Securities, except that no such release will occur
in the case of a lease of all or substantially all of the Partnership’s assets.  The Successor Partnership thereupon may cause to be signed, and may issue either in its own name or in the name of the Partnership, any or all the Debt Securities issuable hereunder which theretofore shall not have been signed by or on behalf of the Partnership and delivered to the Trustee; and, upon the order of the Successor Partnership, instead of the Partnership, and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Debt Securities which previously shall have been signed and delivered by or on behalf of the Partnership to the Trustee for authentication, and any Debt Securities which the Successor Partnership thereafter shall cause to be signed and delivered to the Trustee for that purpose.  All the Debt Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Debt Securities theretofore
or thereafter issued in accordance with the terms of this Indenture as though all such Debt Securities had been issued at the date of the execution hereof.

 

 

47

 

Exhibit 4.1

--------

In case of any such consolidation, amalgamation, merger, sale or disposition such changes in phraseology and form (but not in substance) may be made in the Debt Securities thereafter to be issued as may be appropriate.

 

                       ARTICLE XI                                

SATISFACTION AND DISCHARGE OF

INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

 

Section 11.01 Applicability of Article.  The provisions of this Article XI relating to discharge or
defeasance of Debt Securities shall be applicable to each series of Debt Securities except as otherwise specified pursuant to Section 2.03 for Debt Securities of such series.

 

Section 11.02 Satisfaction and Discharge of Indenture; Defeasance.

 

(a) If at any time the Partnership shall have delivered to the Trustee for cancellation all Debt Securities of any series theretofore authenticated and delivered (other than any Debt Securities of such series which shall have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in Section 2.09 and Debt Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Partnership as provided in Section 11.05) or all Debt Securities of such series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption, and the Partnership shall deposit with the Trustee as trust funds the entire amount in cash sufficient to pay at final maturity or upon redemption all Debt Securities of such series not theretofore delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due on such date of maturity or Redemption Date, as the case may be, and if in either case the Partnership shall also pay or cause to be paid all other
sums payable hereunder by the Partnership, then this Indenture shall cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of such Debt Securities herein expressly provided for) with respect to the Debt Securities of such series, and the Trustee, on demand of the Partnership accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Partnership, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to the Debt Securities of such series.

 

(b) Subject to Sections 11.02(c), 11.03
and 11.07, the Partnership at any time may terminate, with respect to Debt Securities of a particular series, all its obligations under the Debt Securities of such series and this Indenture with respect to the Debt Securities of such series (“legal defeasance option”) or the operation of (x) any covenant made applicable to such Debt Securities pursuant to Section 2.03, (y) Sections 6.01(d), (g) and (h) and (z) as they relate to the Guarantors only, Sections 6.01(e) and (f) (“covenant
defeasance option”).  If the Partnership exercises either its legal defeasance option or its covenant defeasance option with respect to Debt Securities of a particular series that are entitled to the benefit of the Guarantee, the Guarantee will terminate with respect to that series of Debt Securities.  The Partnership may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option.

 

 

48

 

Exhibit 4.1

--------

If the Partnership exercises its legal defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default.  If the Partnership exercises its covenant defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of
Default specified in Sections 6.01(d), (g) and (h) and, with respect to the Guarantors only, Sections 6.01(e) and (f).

 

Upon satisfaction of the conditions set forth herein and upon request of the Partnership, the Trustee shall acknowledge in writing the discharge of those obligations that the Partnership terminates.

 

(c) Notwithstanding clauses (a) and (b) above, the Partnership’s obligations in Sections 2.07, 2.09, 4.02, 4.03,
4.04, the last sentence of 5.01(a), 5.01(a), 5.01, 7.06, 11.05, 11.06 and 11.07 shall survive until the Debt Securities of the defeased series have been paid in full.  Thereafter, the Partnership’s obligations in Sections 7.06, 11.05 and 11.06 shall survive such satisfaction and discharge.

 

Section 11.03 Conditions of Defeasance.  The Partnership may exercise its legal defeasance option or
its covenant defeasance option with respect to Debt Securities of a particular series only if:

 

(a) the Partnership irrevocably deposits in trust with the Trustee money or U.S. Government Obligations for the payment of principal of, and premium, if any, and interest on, the Debt Securities of such series to final maturity or redemption,
as the case may be;

 

(b) the Partnership delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and interest when due and without reinvestment on the deposited
U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay the principal, premium, if any, and interest when due on all the Debt Securities of such series to final maturity or redemption, as the case may be;

 

(c) 91 days pass after the deposit is made and during the 91-day period no Default specified in Section 6.01(e) or 6.01(f) with respect to the Partnership occurs which is continuing at the end of the period;

 

(d) no Default has occurred and is continuing on the date of such deposit and after giving effect thereto;

 

(e) the deposit does not constitute a default under any other agreement binding on the Partnership;

 

 

49

 

Exhibit 4.1

--------

(f) the Partnership delivers to the Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the Investment Company Act of 1940;

 

(g) in the event of the legal defeasance option, the Partnership shall have delivered to the Trustee an Opinion of Counsel stating that  the Partnership has received from the Internal Revenue Service a ruling, or  since
the date of this Indenture there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of Debt Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred;

 

(h) in the event of the covenant defeasance option, the Partnership shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Debt Securities of such series will not recognize income, gain or loss for
Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred; and

 

(i) the Partnership delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of the Debt Securities of such series as contemplated by
this Article XI have been complied with.

 

Before or after a deposit, the Partnership may make arrangements satisfactory to the Trustee for the redemption of Debt Securities of such series at a future date in accordance with Article III.

 

Section 11.04 Application of Trust Money.  The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to this Article XI.  It shall apply the deposited money and the money from U.S. Government Obligations through any paying agent and in accordance with this Indenture to the payment of principal of, and premium, if any, and interest on, the Debt Securities of the defeased series.

 

Section 11.05 Repayment to Partnership.  The Trustee and any paying agent shall promptly turn over to
the Partnership upon request any excess money or securities held by them at any time.

 

Subject to any applicable abandoned property law, the Trustee and any paying agent shall pay to the Partnership upon request any money held by them for the payment of principal, premium or interest that remains unclaimed for two years, and, thereafter, Holders entitled to such money must look to the Partnership for payment as general creditors.

 

Section 11.06 Indemnity for U.S. Government Obligations.  The Partnership shall pay and shall indemnify
the Trustee and the Holders against any tax, fee or other charge imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government Obligations.

 

 

50

 

Exhibit 4.1

--------

Section 11.07 Reinstatement.  If the Trustee or any paying agent is unable to apply any money or U.S.
Government Obligations in accordance with this Article XI by reason of any legal proceeding or by reason of any order or judgment of any court or government authority enjoining, restraining or otherwise prohibiting such application, the Partnership’s obligations under this Indenture and the Debt Securities of the defeased series shall be revived and reinstated as though no deposit had occurred pursuant to this Article XI until such time as the Trustee or any paying agent is permitted to apply all such money
or U.S. Government Obligations in accordance with this Article XI.

 

                              ARTICLE XII                                

[RESERVED]

 

This Article XII has been intentionally omitted.

                

                                ARTICLE XIII                                

MISCELLANEOUS PROVISIONS

 

Section 13.01 Successors and Assigns of Partnership Bound by Indenture.  All the covenants, stipulations,
promises and agreements in this Indenture contained by or in behalf of the Partnership, the Guarantors or the Trustee shall bind their respective successors and assigns, whether so expressed or not.

 

Section 13.02 Acts of Board, Committee or Officer of Successor Partnership Valid.  Any act or proceeding
by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Partnership shall and may be done and performed with like force and effect by the like board, committee or officer of any Successor Partnership.

 

Section 13.03 Required Notices or Demands.  Any notice or communication by the Partnership, the Guarantors
or the Trustee to the others is duly given if in writing and delivered in Person or mailed by registered or certified mail (return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the other’s address:

 

If to the Partnership or any Guarantor:

 

Boardwalk Pipeline Partners, LP

             Boardwalk Pipelines, LP

             3800 Frederica Street

             Owensboro, Kentucky  42301

             Attn: Chief Financial Officer

             Facsimile No.:                                (270)
683-5657

            

 

51

 

Exhibit 4.1

--------

             If to the Trustee:

 

The Bank of New York Mellon Trust Company, N.A.,

             2 North LaSalle Street, 7th Floor

             Chicago, Illinois  60602

             Attn:  Corporate Trust

             Facsimile No.: (312) 827-8542

 

The Partnership, any Guarantor or the Trustee by notice to the others may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; on the first Business Day on or after being sent, if telecopied and the sender receives confirmation of successful transmission;
and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods; provided, however, that (a) the party providing such written instructions, subsequent to
such transmission of written instructions, shall provide the originally executed instructions or directions to the Trustee in a timely manner, and (b) such originally executed instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions.  If the party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the
Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions
and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

Any notice required or permitted to a Holder by the Partnership, any Guarantor or the Trustee pursuant to the provisions of this Indenture shall be deemed to be properly mailed by being deposited postage prepaid in a post office letter box in the United States addressed to such Holder at the address of such Holder as shown on the Debt
Security Register.  Any report pursuant to Section 313 of the TIA shall be transmitted in compliance with subsection (c) therein.

 

Notwithstanding the foregoing, any notice to Holders of Floating Rate Securities regarding the determination of a periodic rate of interest, if such notice is required pursuant to Section 2.03, shall be sufficiently given if given in the manner specified pursuant to Section 2.03.

 

 

52

 

Exhibit 4.1

--------

In the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by mail, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder.

 

In the event it shall be impracticable to give notice by publication, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder.

 

Failure to mail a notice or communication to a Holder or any defect in it or any defect in any notice by publication as to a Holder shall not affect the sufficiency of such notice with respect to other Holders.  If a notice or communication is mailed or published in the manner provided above, it is conclusively presumed duly
given.

 

Section 13.04 Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New York.  THIS
INDENTURE, EACH DEBT SECURITY AND THE GUARANTEE SHALL BE DEEMED TO BE NEW YORK CONTRACTS, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE.

 

Section 13.05 Officers’ Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the Partnership.  Upon
any application or demand by the Partnership to the Trustee to take any action under any of the provisions of this Indenture, the Partnership shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include (a) a statement that the Person making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the nature
and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

Section 13.06 Payments Due on Legal Holidays.  In any case where the date of maturity of interest on
or principal of and premium, if any, on the Debt Securities of a series or the date fixed for redemption or repayment of any Debt Security or the making of any sinking fund payment shall not be a Business Day at any Place of Payment for the Debt Securities of such series, then payment of interest or principal and premium, if any, or the making of such sinking fund payment need not be made on such date at such Place of Payment, but may be made on the next succeeding Business Day at such Place of Payment with the
same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date.  If a record date is not a Business Day, the record date shall not be affected.

 

 

53

 

Exhibit 4.1

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Section 13.07 Provisions Required by TIA to Control.  If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required to be included in this Indenture by any of Sections 310 to 318, inclusive, of the TIA, such required provision shall control.

 

Section 13.08 Computation of Interest on Debt Securities.  Interest, if any, on the Debt Securities
shall be computed on the basis of a 360-day year of twelve 30-day months, except as may otherwise be provided pursuant to Section 2.03.

 

Section 13.09 Rules by Trustee, Paying Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Holders.  The Registrar and any paying agent may make reasonable rules for their functions.

 

Section 13.10 No Recourse Against Others.  The General Partner and its directors, officers, employees,
incorporators and capital stockholders, as such, shall have no liability for any obligations of the Guarantors or the Partnership under the Debt Securities, this Indenture or the Guarantee or for any claim based on, in respect of, or by reason of, such obligations or their creation.  By accepting a Debt Security, each Holder shall be deemed to have waived and released all such liability.  The waiver and release shall be part of the consideration for the issue of the Debt Securities.

 

Section 13.11 Severability.  In case any provision in this Indenture or the Debt Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 13.12 Effect of Headings.  The article and section headings herein and in the Table of Contents
are for convenience only and shall not affect the construction hereof.

 

Section 13.13 Indenture May Be Executed in Counterparts.  This Indenture may be executed in any number
of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

Section 13.14 Waiver of Jury Trial.  EACH OF THE PARTNERSHIP AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE DEBT SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 13.15 Force Majeure.  In no event shall the Trustee be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with
accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

 

54

 

Exhibit 4.1

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                                 ARTICLE XIV                                

GUARANTEE

 

Section 14.01 Unconditional Guarantee.

 

(a) Notwithstanding any provision of this Article XIV to the contrary, the provisions of this Article XIV shall be applicable only to, and inure solely to the benefit of, the Debt Securities of any series designated, pursuant to Section
2.03, as entitled to the benefits of the Guarantee of each of the Guarantors.

 

(b) For value received, each of the Guarantors hereby fully, unconditionally and absolutely guarantees (the “Guarantee”) to the Holders and to the Trustee the due and punctual payment of the principal of, and premium, if any,
and interest on the Debt Securities and all other amounts due and payable under this Indenture and the Debt Securities by the Partnership, when and as such principal, premium, if any, and interest shall become due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, according to the terms of the Debt Securities and this Indenture, subject to the limitations set forth in Section 14.03.

 

(c) Failing payment when due of any amount guaranteed pursuant to the Guarantee, for whatever reason, each of the Guarantors will be jointly and severally obligated to pay the same immediately.  The Guarantee hereunder is intended
to be a general, unsecured, senior obligation of each of the Guarantors and will rank pari passu in right of payment with all Debt of each Guarantor that is not, by its terms, expressly subordinated in right of payment to the Guarantee.  Each of the Guarantors hereby agrees that its obligations hereunder shall be full, unconditional and absolute, irrespective of the validity, regularity or enforceability of the Debt Securities, the Guarantee (including the Guarantee of any other Guarantor) or this Indenture,
the absence of any action to enforce the same, any waiver or consent by any Holder of the Debt Securities with respect to any provisions hereof or thereof, the recovery of any judgment against the Partnership or any other Guarantor, or any action to enforce the same or any other circumstances which might otherwise constitute a legal or equitable discharge or defense of any of the Guarantors.  Each of the Guarantors hereby agrees that in the event of a default in payment of the principal of, or premium,
if any, or interest on the Debt Securities, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf of the Holders or, subject to Section 6.04, by the Holders, on the terms and conditions set forth in this Indenture, directly against such Guarantor to enforce the Guarantee without first proceeding against the Partnership or any other Guarantor.

 

 

55

 

Exhibit 4.1

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(d) The obligations of each of the Guarantors under this Article XIV shall be as aforesaid full, unconditional and absolute and shall not be impaired, modified, released or limited by any occurrence or condition whatsoever, including,
without limitation, (A) any compromise, settlement, release, waiver, renewal, extension, indulgence or modification of, or any change in, any of the obligations and liabilities of the Partnership or any of the Guarantors contained in the Debt Securities or this Indenture, (B) any impairment, modification, release or limitation of the liability of the Partnership, any of the Guarantors or any of their estates in bankruptcy, or any remedy for the enforcement thereof, resulting from the operation of any
present or future provision of any applicable Bankruptcy Law, as amended, or other statute or from the decision of any court, (C) the assertion or exercise by the Partnership, any of the Guarantors or the Trustee of any rights or remedies under the Debt Securities or this Indenture or their delay in or failure to assert or exercise any such rights or remedies, (D) the assignment or the purported assignment of any property as security for the Debt Securities, including all or any part of the rights of
the Partnership or any of the Guarantors under this Indenture, (E) the extension of the time for payment by the Partnership or any of the Guarantors of any payments or other sums or any part thereof owing or payable under any of the terms and provisions of the Debt Securities or this Indenture or of the time for performance by the Partnership or any of the Guarantors of any other obligations under or arising out of any such terms and provisions or the extension or the renewal of any thereof, (F) the
modification or amendment (whether material or otherwise) of any duty, agreement or obligation of the Partnership or any of the Guarantors set forth in this Indenture, (G) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of, or other similar proceeding affecting,
the Partnership or any of the Guarantors or any of their respective assets, or the disaffirmance of the Debt Securities, the Guarantee or this Indenture in any such proceeding, (H) the release or discharge of the Partnership or any of the Guarantors from the performance or observance of any agreement, covenant, term or condition contained in any of such instruments by operation of law, (I) the unenforceability of the Debt Securities, the Guarantee or this Indenture or (J) any other circumstances
(other than payment in full or discharge of all amounts guaranteed pursuant to the Guarantee) which might otherwise constitute a legal or equitable discharge of a surety or guarantor.

 

(e) Each of the Guarantors hereby (A) waives diligence, presentment, demand of payment, filing of claims with a court in the event of the merger, insolvency or bankruptcy of the Partnership or any of the Guarantors, and all demands
whatsoever, (B) acknowledges that any agreement, instrument or document evidencing the Guarantee may be transferred and that the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument or document evidencing the Guarantee without notice to it and (C) covenants that the Guarantee will not be discharged except by complete performance of the Guarantee.  Each of the Guarantors further agrees that if at any time all or any part of any payment theretofore applied
by any Person to the Guarantee is, or must be, rescinded or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or reorganization of the Partnership or any of the Guarantors, the Guarantee shall, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence notwithstanding such application, and the Guarantee shall continue to be effective or be reinstated, as the case may be, as though such application had not been made.

 

(f) Each of the Guarantors shall be subrogated to all rights of the Holders and the Trustee against the Partnership in respect of any amounts paid by such Guarantor pursuant to the provisions of this Indenture, provided, however, that
such Guarantor, shall not be entitled to enforce or to receive any payments arising out of, or based upon, such right of subrogation until all of the Debt Securities and the Guarantee shall have been paid in full or discharged.

 

 

56

 

Exhibit 4.1

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Section 14.02 Execution and Delivery of Guarantee.  To further evidence the Guarantee set forth in Section
14.01, each of the Guarantors hereby agrees that a notation relating to such Guarantee, substantially in the form attached hereto as Annex A, shall be endorsed on each Debt Security entitled to the benefits of the Guarantee authenticated and delivered by the Trustee and executed by either manual or facsimile signature of an officer of such Guarantor, or in the case of a  Guarantor that is a limited partnership, an officer of the general partner of each Guarantor.  Each of the Guarantors hereby
agrees that the Guarantee set forth in Section 14.01 shall remain in full force and effect notwithstanding any failure to endorse on each Debt Security a notation relating to the Guarantee.  If any officer of any Guarantor, or in the case of a Guarantor that is a limited partnership, any officer of the general partner of the Guarantor, whose signature is on this Indenture or a Debt Security
no longer holds that office at the time the Trustee authenticates such Debt Security or at any time thereafter, the Guarantee of such Debt Security shall be valid nevertheless.  The delivery of any Debt Security by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors.

 

The Trustee hereby accepts the trusts in this Indenture upon the terms and conditions herein set forth.

 

Section 14.03 Limitation on Guarantors’ Liability.  Each Guarantor and by its acceptance hereof
each Holder of a Debt Security entitled to the benefits of the Guarantee hereby confirm that it is the intention of all such parties that the guarantee by such Guarantor pursuant to the Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Federal or state law.  To effectuate the foregoing intention, the Holders of a Debt Security entitled to the benefits of the Guarantee and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under the Guarantee
shall be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guarantor and to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under the Guarantee, not result in the obligations of such Guarantor under the Guarantee constituting a fraudulent conveyance or fraudulent transfer under Federal or state law.

 

Section 14.04 Release of Guarantors from Guarantee.

 

(a)           Notwithstanding any other provisions of this Indenture, the Guarantee of any Guarantor may be released upon the terms and subject to the conditions set forth in Section 11.02(b) and in this Section 14.04.  Provided that no Default shall have occurred and shall
be continuing under this Indenture, the Guarantee incurred by a Guarantor pursuant to this Article XIV shall be unconditionally released and discharged (i) automatically upon (A) any sale, exchange or transfer, whether by way of merger or otherwise, to any Person that is not an Affiliate of the Partnership, of all of the Partnership’s direct or indirect limited partnership or other equity interests in such Guarantor (provided such sale, exchange or transfer is not prohibited by this Indenture) or (B) the
merger of such Guarantor into the Partnership or any other Guarantor or the liquidation and dissolution of such Guarantor (in each case to the extent not prohibited by this Indenture) or (ii) following delivery of a written notice of such release or discharge by the Partnership to the Trustee, upon the release or discharge of all guarantees by such Guarantor of any Debt of the Partnership other than obligations arising under this Indenture and any Debt Securities issued hereunder, except a discharge or release
by or as a result of payment under such guarantees.

 

 

57

 

Exhibit 4.1

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(b)           The Trustee shall deliver an appropriate instrument evidencing any release of a Guarantor from the Guarantee upon receipt of a written request of the Partnership accompanied by an Officers’ Certificate and an Opinion of Counsel to the effect that the Guarantor is
entitled to such release in accordance with the provisions of this Indenture.  Any Guarantor not so released shall remain liable for the full amount of principal of (and premium, if any) and interest on the Debt Securities entitled to the benefits of the Guarantee as provided in this Indenture, subject to the limitations of Section 14.03.

 

Section 14.05 Guarantor Contribution.  In order to provide for just and equitable contribution among
the Guarantors, the Guarantors hereby agree, inter se, that in the event any payment or distribution is made by any Guarantor (a “Funding Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled to a contribution from each other Guarantor (if any) in a pro rata amount based on the net assets of each Guarantor (including the Funding Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging the Partnership’s obligations with respect to
the Debt Securities or any other Guarantor’s obligations with respect to the Guarantee.

 

[Remainder of This Page Intentionally Left Blank.]

 

 

  

58

  

Exhibit 4.1

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the day and year first above written.

 

BOARDWALK PIPELINES, LP

By:           Boardwalk Operating GP LLC,

its General Partner

By:           Boardwalk Pipeline Partners, LP

its Sole Member

By:           Boardwalk GP, LP

its General Partner

By:           Boardwalk GP, LLC

its General Partner

By:           /s/ Jamie L. Buskill

Jamie L. Buskill

Chief Financial Officer

BOARDWALK PIPELINE PARTNERS, LP

By:           Boardwalk GP, LP

its General Partner

By:           Boardwalk GP, LLC

its General Partner

By:           /s/ Jamie L. Buskill

Jamie L. Buskill

Chief Financial Officer

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:           /s/ Linda E. Garcia

Name:      Linda E. Garcia

Title:        Vice President                                                            

Signature Page to Senior Indenture

  

  

  

Exhibit 4.1

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ANNEX A

NOTATION OF GUARANTEE

 

Each of the Guarantors (which term includes any successor Person under the Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Debt Securities
and all other amounts due and payable under the Indenture and the Debt Securities by the Partnership.

 

The obligations of the Guarantors to the Holders of Debt Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in Article XIV of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee.

 

	
  
	
[NAME OF GUARANTOR(S)]

	
  
	
By:
	 ___________________________	 

	
  
	
Name:

	
  
	
Title:

  

A-1

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