Document:

exv10w10

 

Exhibit 10.10

 

 

AUSAM ENERGY CORPORATION

REGISTRATION RIGHTS AGREEMENT

dated as of July 3, 2007

 

 

 

 

AUSAM ENERGY CORPORATION

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”), is made and entered into as of July 3,
2007, by and among Ausam Energy Corporation, a body corporate incorporated pursuant to the laws of
the Province of Alberta, Canada (the “Company”) and each of the Holders.

     WHEREAS, prior to the date hereof, certain of the Holders purchased Common Shares or other
securities issued by the Company which are convertible into or exchangeable for Common Shares; and

     WHEREAS, certain of the Holders own or have the right to purchase or otherwise acquire Common
Shares; and

     WHEREAS, the Company and the Holders deem it to be in their respective best interests to set
forth their rights in connection with public offerings and sales of the Common Shares; and

     WHEREAS, the Company has agreed to provide the Holders certain registration rights with
respect to the Registrable Shares, as set forth in this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants and obligations
hereinafter set forth, the Company and each of the Holders hereby agree as follows:

     Section 1. Definitions.

          As used in this Agreement, the following terms shall have the following meanings:

          “Agreement” has the meaning ascribed to such term in the opening paragraph of this Agreement.

          “Board” means the Board of Directors of the Company.

          “Commission” means the Securities and Exchange Commission or any other Federal agency at the
time administering the Securities Act.

          “Common Shares” means the common shares of the Company.

          “Company” has the meaning ascribed to such term in the opening paragraph of this Agreement.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
Federal statute, and the rules and regulations, of the Commission promulgated thereunder, all as
the same shall be in effect from time to time.

          “Holders” means the holders of Common Shares or other securities issued by the Company which
are convertible into or exchangeable Common Shares and the holders of rights to purchase or
otherwise acquire Common Shares which shall have executed a counterpart

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signature page hereto, and includes any successor to, or assignee or transferee of, any such Person
or entity which agrees in writing to be treated as an Holder hereunder and to be bound by the terms
and comply with all applicable provisions hereof.

          “Information” has the meaning ascribed to such term in Section 3(i) of this Agreement.

          “Inspectors” has the meaning ascribed to such term in Section 3(i) of this Agreement.

          “Person” shall mean any individual, corporation, general partnership, limited partnership,
limited liability partnership, joint venture, association, joint-stock company, trust, limited
liability company, unincorporated organization or government or any agency or political
subdivision thereof.

          “Records” has the meaning ascribed to such term in Section 3(i) of this Agreement.

          “Registrable Shares” means (i) any Common Shares held by the Holders or which the Holders
have the right to purchase or otherwise acquire (including, but not limited to, by way of
conversion or exchange) and (ii) any Common Shares which may be issued or distributed or be
issuable in respect of such Common Shares by way of conversion, concession, stock dividend or
stock split or other distribution, recapitalization or reclassification or similar transaction,
but with respect to such shares, only so long as such shares constitute Restricted Shares.

          “Restricted Shares” means Common Shares held by the Holders or which the Holders have the
right to purchase or otherwise acquire. As to any particular Restricted Shares, once issued, such
Restricted Shares shall cease to be Restricted Shares when (i) a registration statement covering
such Registrable Shares has been declared effective by the Commission and such Registrable Shares
have been sold or disposed of pursuant to such effective registration statement; (ii) such
Registrable Shares have been disposed of pursuant to any Section of Rule 144 (or any similar
provision then in force under the Securities Act); (iii) such Registrable Shares are held by the
Company or one of its subsidiaries; (iv) such Registrable Shares have been sold in a private
transaction in which the transferor’s rights under this Agreement are not assigned to the
transferee of such securities; or (v) such Registrable Shares become eligible for resale under
Rule 144(k) (or any similar provision then in force under the Securities Act).

          “Rule 144” means Rule 144 promulgated under the Securities Act or any successor rule thereto
or any complementary rule thereto (such as Rule 144A).

          “Securities Act” means the Securities Act of 1933, as amended, or any successor Federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in
effect from time to time.

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     Section 2. Registration on Form S-1.

          As soon as practicable the Company shall use its reasonable efforts to obtain audited
financial statements as of and for its three fiscal years ended December 31, 2006 prepared in
accordance with generally accepted accounting principles meeting the requirements of the
Commission for a registration statement on Form S-1 relating to the sale of the Common Shares. At
such time as the Company shall have obtained audited financial statements as of and for its three
fiscal years ended December 31, 2006 prepared in accordance with generally accepted accounting
principles meeting the applicable requirements of the Commission, the Company shall prepare, and
as soon as practicable file with the Commission, a registration statement on Form S-1 (or any
other form for which the Company is then eligible) covering the resale by the Holders of all
Registrable Shares then held by the Holders. The Company shall use its reasonable efforts to have
the registration statement declared effective by the Commission as soon as practicable. By 9:30
a.m. on the business day following the effective date of the registration statement, the Company
shall file with the Commission in accordance with Rule 424 under the Securities Act the final
prospectus to be used in connection with sales pursuant to such registration statement.

     Section 3. Preparation and Filing.

          If and whenever the Company is under an obligation pursuant to the provisions of this
Agreement to use its reasonable efforts to effect the registration of any Registrable Shares, the
Company shall, as expeditiously as practicable:

          (a) prepare and file with the Commission as soon as practicable the requisite
registration statement to effect such registration;

          (b) furnish, at least five business days before filing a registration statement that
registers such Registrable Shares, a prospectus relating thereto or any amendments or
supplements relating to such a registration statement or prospectus (in each case including,
without limitation, all exhibits) to each Holder, copies of all such documents proposed to be
filed; provided, that the Company shall not file any part of any such documents to which any
Holder shall have reasonably objected on the grounds that it does not comply in all material respects with the requirements of the Securities Act or of the rules or regulations
thereunder;

          (c) prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective until all of such Registrable Shares are no
longer Restricted Securities and to comply with the provisions of the Securities Act with respect to
the sale or other disposition of such Registrable Shares;

          (d) notify in writing on a timely basis the Holders (i) of the receipt by the Company of any notification with respect to any comments by the Commission with respect to such registration statement or prospectus or any amendment or supplement thereto or any
request by the Commission for the amending or supplementing thereof or for additional information with respect thereto, (ii) of the receipt by the Company of any notification with respect to the
issuance by the Commission of any stop order suspending the effectiveness of such registration
statement

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or prospectus or any amendment or supplement thereto or the initiation or threatening of any
proceeding for that purpose and (iii) of the receipt by the Company of any notification with
respect to the suspension of the qualification of such Registrable Shares for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purposes;

          (e) use its reasonable efforts to register or qualify such Registrable Shares under such other securities or blue sky laws of such jurisdictions as the Holders reasonably request
and do any and all other acts and things which may be reasonably necessary or advisable to enable the Holders to consummate the disposition in such jurisdictions of the Registrable Shares
owned by the Holders; provided, however, that the Company will not be required to qualify generally
to do business, subject itself to general taxation or consent to general service of process in
any jurisdiction where it would not otherwise be required to do so but for this paragraph (e) or
to provide any material undertaking or make any changes in its bylaws or articles of
incorporation which the Board determines to be contrary to the best interests of the Company or to modify
any of its contractual relationships then existing;

          (f) furnish to the Holders holding such Registrable Shares such number of copies
of a summary prospectus, if any, or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the
Holders may reasonably request in order to facilitate the public sale or other disposition of such

Registrable Shares;

          (g) without limiting subsection (e) above, use its reasonable efforts to cause such
Registrable Shares to be registered with or approved by such other governmental agencies or
authorities as may be necessary by virtue of the business and operations of the Company to
enable the Holders holding such Registrable Shares to consummate the disposition of such
Registrable Shares;

          (h) notify the Holders holding such Registrable Shares on a timely basis at any time when a
prospectus relating to such Registrable Shares is required to be delivered under the Securities
Act within the appropriate period mentioned in subparagraph (a) of this Section 3, of the
happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing and, at the request of the Holders prepare
and furnish to the Holders a reasonable number of copies of a supplement to or an amendment of
such prospectus as may be necessary so that, as thereafter delivered to the offerees of such
shares, such prospectus shall not include an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

          (i) subject to the execution of confidentiality agreements in form and substance satisfactory
to the Company, make available upon reasonable notice and during normal business hours, for
inspection by the Holders holding such Registrable Shares, any underwriter participating in any
disposition pursuant to such registration statement and any attorney, accountant or other agent
retained by the Holders or underwriter (collectively, the “Inspectors”), all pertinent financial
and other records, pertinent corporate documents and properties of the

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Company (collectively, the “Records”), as shall be reasonably necessary to enable them to
exercise their due diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information (together with the Records, the “Information”) reasonably
requested by any such Inspector in connection with such registration statement. Any of the
Information which the Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, shall not be disclosed by the Inspectors unless
(i) the disclosure of such Information is necessary to avoid or correct a misstatement or
omission in the registration statement, (ii) the release of such Information is ordered pursuant
to a subpoena or other order from a court of competent jurisdiction or (iii) such Information
has been made generally available to the public; the Holders agree that they will, upon learning
that disclosure of such Information is sought in a court of competent jurisdiction, give notice
to the Company and allow the Company, at the Company’s expense, to undertake appropriate action
to prevent disclosure of the Information deemed confidential;

          (j) provide a transfer agent and registrar (which may be the same entity and which may be
the Company) for such Registrable Shares;

          (k) issue certificates evidencing such Registrable Shares to any underwriter to which the
Holders holding such Registrable Shares may sell shares in such offering;

          (1) subject to all the other provisions of this Agreement, use its reasonable efforts to
take all other steps necessary to effect the registration of such Registrable Shares
contemplated hereby.

          Each Holder of the Registrable Shares, upon receipt of any notice from the Company of any
event of the kind described in Section 3(h) hereof, shall forthwith discontinue disposition of
the Registrable Shares pursuant to the registration statement covering such Registrable Shares
until such Holder’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(h) hereof, and, if so directed by the Company, such Holder shall deliver to the
Company all copies, other than permanent file copies then in such Holder’s possession, of the
prospectus covering such Registrable Shares at the time of receipt of such notice.

     Section 4. Expenses.

          All expenses (other than underwriting discounts and commissions relating to the Registrable
Shares, as provided below) incurred by the Company in complying with Section 3, including,
without limitation, all registration and filing fees (including all expenses incident to filing
with the NASD), fees and expenses of complying with securities and blue sky laws, printing
expenses and fees and expenses of the Company’s counsel and accountants shall be paid by the
Company; provided, however, that all underwriting discounts and selling commissions applicable
to the Registrable Shares shall be borne by the Holders selling such Registrable Shares, in
proportion to the number of Registrable Shares sold by each such Holder.

     Section 5. Mergers, etc.

          The Company shall not, directly or indirectly, enter into any merger, consolidation or reorganization in which the Company shall not be the surviving entity unless the

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surviving entity shall, prior to such merger, consolidation or reorganization, agree in writing to
assume the obligations of the Company under this Agreement, and for that purpose references
hereunder to “Registrable Shares” shall be deemed to include the common equity interests or other
securities, if any, which the Holders would be entitled to receive in exchange for Registrable
Shares under any such merger, consolidation or reorganization, provided that, to the extent the
Holders receive securities that are by their terms convertible into common equity interests of the
issuer thereof, then any such common equity interests as are issued or issuable upon conversion of
said convertible securities shall be included within the definition of “Registrable Shares.”

     Section 6. Information by Holders.

          The Holders shall furnish to the Company such written information regarding the Holders and
the distribution proposed by the Holders as the Company may reasonably request in writing and as
shall be reasonably required in connection with any registration, qualification or compliance
referred to in this Agreement.

     Section 7. Rule 144; Rule 144A.

          (a) If the Company shall have filed a registration statement pursuant to the requirements of Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act, the Company shall use its reasonable efforts to file the
reports required to be filed by it under the Securities Act and the Exchange Act (or, if the Company
is not required to file such reports, will, upon the request of any Holder of Registrable Shares,
use its reasonable efforts to make publicly available other information) and will use its
reasonable efforts to take such further action as any Holder of Registrable Shares may reasonably
request, all to the extent required from time to time to enable such Holder to sell Registrable Shares without registration under the Securities Act within the limitation of the exemptions provided
by Rule 144. Upon the request of any Holder of Registrable Shares, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. After
any sale of Registrable Shares pursuant to this Section 13, the Company shall, to the extent
allowed by law, cause any restrictive legends to be removed and any transfer restrictions to be
rescinded with respect to such Registrable Shares.

          (b) In order to permit the Holders of Registrable Shares to sell the same, if they so desire, pursuant to Rule 144A, the Company shall use its reasonable efforts to comply with
all rules and regulations of the Commission applicable in connection with use of Rule 144A. Prospective transferees of Registrable Shares that are Qualified Institutional Buyers (as
defined in Rule 144A), which would be purchasing such Registrable Shares in reliance upon Rule 144A, may request from the Company information regarding the business, operations and assets of the Company.
As soon as practicable after receipt by the Company of any such request, the Company shall deliver to any such prospective transferee copies of annual audited and
quarterly unaudited financial statements of the Company and such other information as may be required to be supplied by the Company for it to comply with Rule 144A.

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     Section 8. No Conflict of Rights; Future Rights.

          The Company shall not, after the date hereof, grant any registration rights that conflict with
or adversely affect the rights granted to the Holders hereby. If at any time following the date
hereof, the Company shall grant to any present or future holder of securities of the Company rights
to in any manner cause or participate in any Registration Statement of the Company that are
superior to or otherwise conflict with the rights granted to the Holders hereby, then this
Agreement shall be amended to provide the Holders with rights equal to those granted after the date
hereof.

     Section 9. Termination.

          This Agreement shall terminate and be of no further force or effect when (i) there shall no
longer be any Registrable Shares outstanding, or (ii) all of the Registrable Shares may be sold
without registration under the Securities Act pursuant to Rule 144(k).

     Section 10. Successors and Assigns.

          This Agreement shall bind and inure to the benefit of the Company, the Holders and, subject
to Section 11, the respective successors and assigns of the Company and the Holders.

     Section 11. Assignment.

          Any Holder may assign its rights hereunder to any purchaser or transferee of Registrable
Shares; provided, however, that such purchaser or transferee shall, as a condition to the
effectiveness of such assignment, be required to execute a counterpart to this Agreement agreeing
to be treated as an Holder whereupon such purchaser or transferee shall have the benefits of, and
shall be subject to the restrictions contained in, this Agreement as if such purchaser or
transferee was originally included in the definition of Holders herein and had originally been a
party hereto.

     Section 12. Entire Agreement.

          This Agreement and the other writings referred to herein contain the entire agreement between
the Holders and the Company with respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or understandings with respect thereto.

     Section 13. Notices.

          All notices, requests, consents and other communications hereunder to any party shall be
deemed to be sufficient if contained in a written instrument delivered in person or sent by
telecopy, nationally-recognized overnight courier or. first class registered or certified mail,
return receipt requested, postage prepaid, addressed to such party at the address set forth below
or such other address as may hereafter be designated in writing by such party to the other
parties:

	 	(i)	 	If to the Company:

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Ausam Energy Corporation

1122 Fourth Street S.W., Suite 1430

Calgary, Alberta T2R 1Ml

Telephone: (403) 215-2380

Facsimile: (403) 206-1457

Attention: Chief Executive Officer and President

with a copy to:

Mark Kelly, Esq.

Vinson & Elkins L.L.P.

1001 Fannin Street, Suite 2500

Houston, Texas 77002

Telephone: (713) 758-4592

Facsimile: (713) 615-5531

	 	(ii)	 	If to the Holders, to each Holder’s address set forth on Schedule I.

          All such notices, requests, consents and other communications shall be deemed to have been
delivered (a) in the case of personal delivery or delivery by telecopy, on the date of such
delivery, (b) in the case of dispatch by nationally-recognized overnight courier, on the next
business day following such dispatch and (c) in the case of mailing, on the third business day
after the posting thereof.

     Section 14. Modifications; Amendments: Waivers.

          The terms and provisions of this Agreement may not be modified or amended, nor may any
provision be waived, except pursuant to a writing signed by the Company and the Holders of at
least a majority of the Registrable Shares then outstanding.

     Section 15. Remedies; Specific Performance.

          (a) Each Holder shall have all rights and remedies reserved for such Holder pursuant to this
Agreement and all rights and remedies which such Holder has been granted at any time under any
other agreement or contract and all of the rights which such Holder has under any law or equity.
Any Person having any rights under any provision of this Agreement will be entitled to enforce
such rights specifically, to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law or equity.

          (b) The parties hereto recognize and agree that money damages may be insufficient to
compensate the Holders of any Registrable Shares for breaches by the Company of the terms hereof
and, consequently, that the equitable remedies of injunctive relief and of specific performance of
the terms hereof will be available in the event of any such breach. If any action should be
brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto
shall raise the defense that there is an adequate remedy at law.

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     Section 16. Severability.

          It is the desire and intent of the parties that the provisions of this Agreement be enforced
to the fullest extent permissible under the law and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, in the event that any provision of this Agreement would
be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such
provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn
so as not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other jurisdiction.

     Section 17. Counterparts.

          This Agreement may be executed in any number of counterparts, and each such counterpart
hereof shall be deemed to be an original instrument, but all such counterparts together shall
constitute but one agreement.

     Section 18. Headings.

          The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be a part of this Agreement.

     Section 19. Governing Law.

          This Agreement shall be governed by and construed in accordance with the laws of the State of
New York applicable to contracts made and to be performed wholly therein.

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     IN WITNESS WHEREOF, the Company has executed this Registration Rights Agreement on
the date first written above.

	 	 	 	 	 
	 	THE COMPANY:

AUSAM ENERGY CORPORATION

 	 
	 	By:  	/s/ Richard Lummis	 
	 	 	Richard Lummis 	 
	 	 	Vice President, Legal and Compliance and
Corporate Secretary 	 
	 

Signature Page to Registration Rights Agreement

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     IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of
the date first written above.

	 	 	 	 	 
	 	THE HUFF ENERGY FUND, L.P.

By  WRH ENERGY PARTNERS, L.L.C., 

       General Partner

 	 
	 	By:  	/s/
Bryan Bloom	 
	 	 	 	 
	 	 	 	 
	 

Signature Page to Registration Rights Agreement

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Schedule I

List of Holders with Addresses

The Huff Energy Fund, L.P.

67 Park Place, 9th Floor

Morristown, NJ 07960

12exv4w2

 

Exhibit 4.2

CENTERPOINT ENERGY RESOURCES CORP.

(formerly known as NorAm Energy Corp.)

To

THE BANK OF NEW YORK TRUST COMPANY, NATIONAL ASSOCIATION

(successor to JPMorgan Chase Bank, National Association

(formerly Chase Bank of Texas, National Association)),

Trustee

 

SUPPLEMENTAL INDENTURE NO. 11

Dated as of October 23, 2007

 

$250,000,000

6.125% Senior Notes due 2017

 

 

CENTERPOINT ENERGY RESOURCES CORP.

(formerly known as NorAm Energy Corp.)

SUPPLEMENTAL INDENTURE NO. 11

$250,000,000

6.125% Senior Notes due 2017

     SUPPLEMENTAL INDENTURE No. 11, dated as of October 23, 2007, between CENTERPOINT ENERGY
RESOURCES CORP., a Delaware corporation formerly known as NorAm Energy Corp. (the “Company”), and
THE BANK OF NEW YORK TRUST COMPANY, NATIONAL ASSOCIATION (successor to JPMorgan Chase Bank,
National Association (formerly Chase Bank of Texas, National Association)), as Trustee (the
“Trustee”).

RECITALS

     The Company has heretofore executed and delivered to the Trustee an Indenture, dated as of
February 1, 1998 (the “Original Indenture” and, as previously and hereby supplemented and amended,
the “Indenture”), providing for the issuance from time to time of one or more series of the
Company’s Securities.

     The Company has changed its name from “NorAm Energy Corp.” to “CenterPoint Energy Resources
Corp.” and all references in the Indenture to the “Company” or “NorAm Energy Corp.” shall be deemed
to refer to CenterPoint Energy Resources Corp.

     Pursuant to the terms of the Indenture, the Company desires to provide for the establishment
of a new series of Securities to be designated as the “6.125% Senior Notes due 2017” (the “Notes”),
the form and substance of such Notes and the terms, provisions and conditions thereof to be set
forth as provided in the Original Indenture and this Supplemental Indenture No. 11.

     Section 301 of the Original Indenture provides that various matters with respect to any series
of Securities issued under the Indenture may be established in an indenture supplemental to the
Indenture.

     Subparagraph (7) of Section 901 of the Original Indenture provides that the Company and the
Trustee may enter into an indenture supplemental to the Indenture to establish the form or terms of
Securities of any series as permitted by Sections 201 and 301 of the Original Indenture.

     For and in consideration of the premises and the issuance of the series of Securities provided
for herein, it is mutually covenanted and agreed, for the equal and proportionate benefit

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of the Holders of the Securities of such series, as follows:

ARTICLE ONE

Relation to Indenture; Additional Definitions

     Section 101. Relation to Indenture. This Supplemental Indenture No. 11 constitutes an
integral part of the Original Indenture.

     Section 102. Additional Definitions. For all purposes of this Supplemental Indenture No. 11:

     Capitalized terms used herein shall have the meaning specified herein or in the
Original Indenture, as the case may be;

     “Acquired Entity” has the meaning set forth in Section 303(k) hereof;

     “Capital Lease” means a lease that, in accordance with accounting principles generally
accepted in the United States of America, would be recorded as a capital lease on the
balance sheet of the lessee;

     “Comparable Treasury Yield” has the meaning set forth in Section 402(a) hereof;

     “Consolidated Net Tangible Assets” means the total amount of assets of the Company and
its Subsidiaries less, without duplication: (a) total current liabilities (excluding
indebtedness due within 12 months); (b) all reserves for depreciation and other asset
valuation reserves, but excluding reserves for deferred federal income taxes; (c) all
intangible assets such as goodwill, trademarks, trade names, patents and unamortized debt
discount and expense carried as an asset; and (d) all appropriate adjustments on account of
minority interests of other Persons holding common stock of any Subsidiary, all as reflected
in the Company’s most recent audited consolidated balance sheet preceding the date of such
determination;

     “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered, as follows: (a) for
payment, registration and transfer of the Securities: 2001 Bryan Street, 9th Floor, Dallas,
Texas 75201, Attention: Bondholder Communications; telephone (214) 672-5125 or (800)
275-2048; telecopy: (214) 672-5873; and (b) for all other communications relating to the
Securities: 601 Travis Street, 18th Floor, Houston, Texas 77002, Attention: Global Corporate
Trust; telephone: (713) 483-6817; telecopy: (713) 483-7038;

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

     “Funded Debt” has the meaning set forth in Section 304 hereof.

     “H.15 Statistical Release” has the meaning set forth in Section 402(b) hereof;

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     The term “indebtedness,” as applied to the Company or any Subsidiary, means bonds,
debentures, notes and other instruments or arrangements representing obligations created or
assumed by any such corporation, including any and all: (i) obligations for money borrowed
(other than unamortized debt discount or premium); (ii) obligations evidenced by a note or
similar instrument given in connection with the acquisition of any business, properties or
assets of any kind; (iii) obligations as lessee under a Capital Lease; and (iv) any
amendments, renewals, extensions, modifications and refundings of any such indebtedness or
obligation listed in clause (i), (ii) or (iii) above. All indebtedness secured by a lien
upon property owned by the Company or any Subsidiary and upon which indebtedness any such
corporation customarily pays interest, although any such corporation has not assumed or
become liable for the payment of such indebtedness, shall for all purposes hereof be deemed
to be indebtedness of any such corporation. All indebtedness for borrowed money incurred by
other Persons which is directly guaranteed as to payment of principal by the Company or any
Subsidiary shall for all purposes hereof be deemed to be indebtedness of the Company or any
such Subsidiary, as applicable, but no other contingent obligation of the Company or any
such Subsidiary in respect of indebtedness incurred by other Persons shall for any purpose
be deemed to be indebtedness of the Company or any such Subsidiary;

     “Independent Investment Banker” has the meaning set forth in Section 401(c) hereof;

     “Interest Payment Date” has the meaning set forth in Section 204(a) hereof;

     “Issue Date” has the meaning set forth in Section 204(a) hereof;

     “lien” or “liens” have the meanings set forth in Section 303 hereof;

     “Long-Term Indebtedness” means, collectively, the Company’s outstanding: (a) 7.875%
Senior Notes due 2013, (b) 5.95% Senior Notes due 2014, and (c) any long-term indebtedness
(but excluding for this purpose any long-term indebtedness incurred pursuant to any
revolving credit facility, letter of credit facility or other similar bank credit facility)
of the Company issued subsequent to the issuance of the Notes and prior to the Termination
Date containing covenants substantially similar to the covenants set forth in Sections 303
and 304 hereof, or an event of default substantially similar to the event of default set
forth in Section 501(a) hereof, but not containing a provision substantially similar to the
provision set forth in Section 305 hereof;

     “Make-Whole Premium” has the meaning set forth in Section 401(b) hereof;

     “Maturity Date” has the meaning set forth in Section 203 hereof;

     “Non-Recourse Debt” means (i) any indebtedness for borrowed money incurred by any
Project Finance Subsidiary to finance the acquisition, improvement, installation, design,
engineering, construction, development, completion, maintenance or operation of, or
otherwise to pay costs and expenses relating to or providing financing for, any project,
which indebtedness for borrowed money does not provide for recourse against the Company or
any Subsidiary of the Company (other than a Project Finance Subsidiary and

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such recourse as exists under a Performance Guaranty) or any property or asset of the
Company or any Subsidiary of the Company (other than Equity Interests in, or the property or
assets of, a Project Finance Subsidiary and such recourse as exists under a Performance
Guaranty) and (ii) any refinancing of such indebtedness for borrowed money that does not
increase the outstanding principal amount thereof (other than to pay costs incurred in
connection therewith and the capitalization of any interest or fees) at the time of the
refinancing or increase the property subject to any lien securing such indebtedness for
borrowed money or otherwise add additional security or support for such indebtedness for
borrowed money.

     “Notes” has the meaning set forth in the third paragraph of the Recitals hereof;

     “Original Indenture” has the meaning set forth in the first paragraph of the Recitals
hereof;

     “Performance Guaranty” means any guaranty issued in connection with any Non-Recourse
Debt that (i) if secured, is secured only by assets of or Equity Interests in a Project
Finance Subsidiary, and (ii) guarantees to the provider of such Non-Recourse Debt or any
other person (a) performance of the improvement, installation, design, engineering,
construction, acquisition, development, completion, maintenance or operation of, or
otherwise affects any such act in respect of, all or any portion of the project that is
financed by such Non-Recourse Debt, (b) completion of the minimum agreed equity or other
contributions or support to the relevant Project Finance Subsidiary, or (c) performance by a
Project Finance Subsidiary of obligations to persons other than the provider of such
Non-Recourse Debt.

     “Principal Property” means any natural gas distribution property, natural gas pipeline
or gas processing plant located in the United States, except any such property that in the
opinion of the Board of Directors is not of material importance to the total business
conducted by the Company and its consolidated Subsidiaries. “Principal Property” shall not
include any oil or gas property or the production or proceeds of production from an oil or
gas producing property or the production or any proceeds of production of gas processing
plants or oil or gas or petroleum products in any pipeline or storage field;

     “Project Finance Subsidiary” means any Subsidiary designated by the Company whose
principal purpose is to incur Non-Recourse Debt and/or construct, lease, own or operate the
assets financed thereby, or to become a direct or indirect partner, member or other equity
participant or owner in a Person created for such purpose, and substantially all the assets
of which Subsidiary or Person are limited to (x) those assets being financed (or to be
financed), or the operation of which is being financed (or to be financed), in whole or in
part by Non-Recourse Debt, or (y) Equity Interests in, or indebtedness or other obligations
of, one or more other such Subsidiaries or Persons, or (z) indebtedness or other obligations
of the Company or any Subsidiary or other Persons. At the time of designation of any
Project Finance Subsidiary, the sum of the net book value of the assets of such Subsidiary
and the net book value of the assets of all other Project Finance Subsidiaries then existing
shall not in the aggregate exceed 10 percent of Consolidated

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Net Tangible Assets.

     “Redemption Price” has the meaning set forth in Section 401(a) hereof;

     “Regular Record Date” has the meaning set forth in Section 204(b) hereof;

     “Remaining Term” has the meaning set forth in Section 402(a) hereof;

     “Sale and Leaseback Transaction” means any arrangement entered into by the Company or
any Subsidiary with any Person providing for the leasing to the Company or any Subsidiary of
any Principal Property (except for temporary leases for a term, including any renewal
thereof, of not more than three years and except for leases between the Company and a
Subsidiary or between Subsidiaries), which Principal Property has been or is to be sold or
transferred by the Company or such Subsidiary to such Person;

     “Significant Subsidiary” means any Subsidiary of the Company, other than a Project
Finance Subsidiary, that is a “significant subsidiary” as defined in Rule 1-02 of Regulation
S-X under the Securities Act of 1933 and the Securities Exchange Act of 1934, as such
regulation is in effect on the date of issuance of the Notes.

     “Subsidiary” of any entity means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (i) the issued
and outstanding capital stock having ordinary voting power to elect a majority of the Board
of Directors of such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (ii) the interest in the capital or profits of such limited
liability company, partnership, joint venture or other entity or (iii) the beneficial
interest in such trust or estate is at the time directly or indirectly owned or controlled
by such entity, by such entity and one or more of its other subsidiaries or by one or more
of such entity’s other subsidiaries.

     “Termination Date” has the meaning set forth in Section 305.

     “Value” with respect to a Sale and Leaseback Transaction has the meaning set forth in
Section 303 hereof;

     All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture No. 11; and

     The terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Supplemental Indenture No. 11.

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ARTICLE TWO

The Series of Securities

     Section 201. Title of the Securities. The Notes shall be designated as the “6.125% Senior
Notes due 2017.”

     Section 202. Limitation on Aggregate Principal Amount. The Trustee shall authenticate and
deliver the Notes for original issue on the Issue Date in the aggregate principal amount of
$250,000,000 upon a Company Order for the authentication and delivery thereof and satisfaction of
Sections 301 and 303 of the Original Indenture. Such order shall specify the amount of the Notes
to be authenticated, the date on which the original issue of Notes is to be authenticated and the
name or names of the initial Holder or Holders. The aggregate principal amount of Notes that may
initially be outstanding shall not exceed $250,000,000; provided, however, that the
authorized aggregate principal amount of the Notes may be increased above such amount by a Board
Resolution to such effect.

     Section 203. Stated Maturity. The Stated Maturity of the Notes shall be November 1, 2017 (the
“Maturity Date”).

     Section 204. Interest and Interest Rates.

     (a) The Notes shall bear interest at the rate of 6.125% per annum, from and including October
23, 2007 (the “Issue Date”) to, but excluding, the Maturity Date. Such interest shall be payable
semiannually in arrears, on May 1 and November 1, of each year (each such date, an “Interest
Payment Date”), commencing May 1, 2008.

     (b) The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Persons in whose names the Notes (or one or more Predecessor Securities)
are registered at the close of business on the immediately preceding April 15 and October 15,
respectively, whether or not such day is a Business Day (each such date, a “Regular Record Date”).
Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date and shall either (i) be paid to the Person in whose name
such Note (or one or more Predecessor Securities) is registered at the close of business on the
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of the Notes not less than 10 days prior to such Special Record
Date, or (ii) be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange or automated quotation system on which the Notes may be listed or
traded, and upon such notice as may be required by such exchange or automated quotation system, all
as more fully provided in the Indenture.

     (c) The amount of interest payable for any period shall be computed on the basis of a 360-day
year of twelve 30-day months. The amount of interest payable for any partial period shall be
computed on the basis of a 360-day year of twelve 30-day months and the days elapsed in any partial
month. In the event that any date on which interest is payable on a Note is not a Business Day,
then a payment of the interest payable on such date will be made on the next succeeding day which
is a Business Day (and without any interest or other payment in respect of

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any such delay) with the same force and effect as if made on the date the payment was
originally payable.

     (d) Any principal and premium, if any, and any installment of interest, which is overdue shall
bear interest at the rate of 6.125% per annum (to the extent permitted by law), from the dates such
amounts are due until they are paid or made available for payment, and such interest shall be
payable on demand.

     Section 205. Place of Payment. The Trustee shall initially serve as the Paying Agent for the
Notes. The Place of Payment where the Notes may be presented or surrendered for payment shall be
the Corporate Trust Office of the Trustee.

     Section 206. Place of Registration or Exchange; Notices and Demands With Respect to the Notes.
The place where the Holders of the Notes may present the Notes for registration of transfer or
exchange and may make notices and demands to or upon the Company in respect of the Notes shall be
the Corporate Trust Office of the Trustee.

     Section 207. Percentage of Principal Amount. The Notes shall be initially issued at 99.658%
of their principal amount plus accrued interest, if any, from October 23, 2007.

     Section 208. Global Securities. The Notes shall be issuable in whole or in part in the form
of one or more Global Securities. Such Global Securities shall be deposited with, or on behalf of,
The Depository Trust Company, New York, New York, which shall act as Depositary with respect to the
Notes. Such Global Securities shall bear the legends set forth in the form of Security attached as
Exhibit A hereto.

     Section 209. Form of Securities. The Notes shall be substantially in the form attached as
Exhibit A hereto.

     Section 210. Securities Registrar. The Trustee shall initially serve as the Security
Registrar for the Notes.

     Section 211. Defeasance and Discharge; Covenant Defeasance.

     (a) Article Fourteen of the Original Indenture, including without limitation, Sections 1402
and 1403 (as modified by Section 211(b) hereof) thereof, shall apply to the Notes.

     (b) Solely with respect to the Notes issued hereby, the first sentence of Section 1403 of the
Original Indenture is hereby deleted in its entirety, and the following is substituted in lieu
thereof:

“Upon the Company’s exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be,
(1) the Company shall be released from its obligations under Article Eight
and under any covenants provided pursuant to Section 301(20), 901(2) or
901(7) for the benefit of the Holders of such Securities, including, without
limitation, the covenants provided for in Article Three of Supplemental
Indenture No. 11 to the Indenture, and (2) the occurrence of any event

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specified in Sections 501(4) (with respect to Article Eight and to any such
covenants provided pursuant to Section 301(20), 901(2) or 901(7)) and 501(7)
shall be deemed not to be or result in an Event of Default, in each case
with respect to such Securities as provided in this Section on and after the
date the conditions set forth in Section 1404 are satisfied (hereinafter
called “Covenant Defeasance”).”

     Section 212. Sinking Fund Obligations. The Company shall have no obligation to redeem or
purchase any Notes pursuant to any sinking fund or analogous requirement or upon the happening of a
specified event or at the option of a Holder thereof.

ARTICLE THREE

Additional Covenants

     Section 301. Maintenance of Properties. The Company shall cause all properties used or useful
in the conduct of its business or the business of any Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment and shall cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly conducted at all times; provided, however, that nothing
in this Section shall prevent the Company from discontinuing the operation or maintenance of any of
such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct
of its business or the business of any Subsidiary.

     Section 302. Payment of Taxes and Other Claims. The Company shall pay or discharge or cause
to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or upon the income,
profits or property of the Company or any Subsidiary, and (2) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien upon the property of the
Company or any Subsidiary; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate
proceedings.

     Section 303. Restrictions on Liens. The Company shall not pledge, mortgage or hypothecate, or
permit to exist, and shall not cause, suffer or permit any Subsidiary to pledge, mortgage or
hypothecate, or permit to exist, except in favor of the Company or any Subsidiary, any mortgage,
deed of trust, pledge, hypothecation, assignment, deposit arrangement, charge, security interest,
encumbrance or lien of any kind whatsoever (including any Capital Lease) (collectively, a “lien” or
“liens”) upon, any Principal Property or any Equity Interest in any Significant Subsidiary owning
any Principal Property, at any time owned by it or a Subsidiary, to secure any indebtedness,
without making effective provisions whereby the Notes shall be equally and ratably secured with or
prior to any and all such indebtedness and any other indebtedness similarly entitled to be equally
and ratably secured; provided, however, that this provision shall not apply to or
prevent the creation or existence of:

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     (a) undetermined or inchoate liens and charges incidental to construction, maintenance,
development or operation;

     (b) the lien of taxes and assessments for the then current year;

     (c) the lien of taxes and assessments not at the time delinquent;

     (d) the lien of specified taxes and assessments which are delinquent but the validity of which
is being contested at the time by the Company or such Subsidiary in good faith and by appropriate
proceedings;

     (e) any obligations or duties, affecting the property of the Company or such Subsidiary, to
any municipality or public authority with respect to any franchise, grant, license, permit or
similar arrangement;

     (f) the liens of any judgments or attachment in an aggregate amount not in excess of
$10,000,000, or the lien of any judgment or attachment the execution or enforcement of which has
been stayed or which has been appealed and secured, if necessary, by the filing of an appeal bond;

     (g) any lien on any property held or used by the Company or a Subsidiary in connection with
the exploration for, development of or production of oil, gas, natural gas (including liquefied gas
and storage gas), other hydrocarbons, helium, coal, metals, minerals, steam, timber, geothermal or
other natural resources or synthetic fuels, such properties to include, but not be limited to, the
Company’s or a Subsidiary’s interest in any mineral fee interests, oil, gas or other mineral
leases, royalty, overriding royalty or net profits interests, production payments and other similar
interests, wellhead production equipment, tanks, field gathering lines, leasehold or field
separation and processing facilities, compression facilities and other similar personal property
and fixtures;

     (h) any lien on oil, gas, natural gas (including liquefied gas and storage gas), and other
hydrocarbons, helium, coal, metals, minerals, steam, timber, geothermal or other natural resources
or synthetic fuels produced or recovered from any property, an interest in which is owned or leased
by the Company or a Subsidiary;

     (i) liens upon any property heretofore or hereafter acquired, constructed or improved, created
at the later of the time of acquisition or commercial operation thereof, or within one year
thereafter (and accessions and proceeds thereof), to secure all or a portion of the purchase price
thereof or the cost of such construction or improvement, or existing thereon at the date of
acquisition, whether or not assumed by the Company or a Subsidiary, provided that every such lien
shall apply only to the property so acquired or constructed and fixed improvements thereon (and
accessions and proceeds thereof);

     (j) any extension, renewal or refunding, in whole or in part, of any lien permitted by
subparagraph (i) above, if limited to the same property or any portion thereof subject to, and
securing not more than the amount secured by, the lien extended, renewed or refunded;

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     (k) liens upon any property of any entity heretofore or hereafter acquired by any entity that
is or becomes a Subsidiary after the date hereof (“Acquired Entity”) provided that every such lien
(1) shall either (A) exist prior to the time the Acquired Entity becomes a Subsidiary or (B) be
created at the time the Acquired Entity becomes a Subsidiary or within one year thereafter to
secure all or a portion of the acquisition price thereof and (2) shall only apply to those
properties owned by the Acquired Entity at the time it becomes a Subsidiary or thereafter acquired
by it from sources other than the Company or any other Subsidiary;

     (l) the pledge of current assets, in the ordinary course of business, to secure current
liabilities;

     (m) any lien arising by reason of deposits with, or the giving of any form of security to, any
governmental agency or any body created or approved by law or governmental regulation for any
purpose at any time in connection with the financing of the acquisition or construction of property
to be used in the business of the Company or a Subsidiary or as required by law or governmental
regulation as a condition to the transaction of any business or the exercise of any privilege or
license, or to enable the Company or a Subsidiary to maintain self-insurance or to participate in
any funds established to cover any insurance risks or in connection with workmen’s compensation,
unemployment insurance, old age pensions or other social security, or to share in the privileges or
benefits required for companies participating in such arrangements; the lien reserved in leases for
rent and for compliance with the terms of the lease in the case of leasehold estates; mechanics’ or
materialmen’s liens, any liens or charges arising by reason of pledges or deposits to secure
payment of workmen’s compensation or other insurance, good faith deposits in connection with
tenders, leases of real estate, bids or contracts (other than contracts for the payment of money),
deposits to secure duties or public or statutory obligations, deposits to secure, or in lieu of,
surety, stay or appeal bonds, and deposits as security for the payment of taxes or assessments or
similar charges;

     (n) any lien of or upon any office equipment, data processing equipment (including, without
limitation, computer and computer peripheral equipment), or transportation equipment (including,
without limitation, motor vehicles, tractors, trailers, marine vessels, barges, towboats, rolling
stock and aircraft);

     (o) any lien created or assumed by the Company or a Subsidiary in connection with the issuance
of debt securities the interest on which is excludable from gross income of the holder of such
security pursuant to the Internal Revenue Code, as amended, for the purposes of financing, in whole
or in part, the acquisition or construction of property to be used by the Company or a Subsidiary;
or

     (p) the pledge or assignment of accounts receivable, or the pledge or assignment of
conditional sales contracts or chattel mortgages and evidences of indebtedness secured thereby,
received in connection with the sale by the Company or such Subsidiary or others of goods or
merchandise to customers of the Company or such Subsidiary.

     In case the Company or any Subsidiary shall propose to pledge, mortgage, or hypothecate any
Principal Property at any time owned by it to secure any indebtedness, other than as permitted by
paragraphs (a) to (p), inclusive, of this Section 303, the Company shall prior thereto

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give written notice thereof to the Trustee, and the Company shall or shall cause such
Subsidiary to, prior to or simultaneously with such pledge, mortgage or hypothecation, by
supplemental indenture executed and delivered to the Trustee (or to the extent legally necessary to
another trustee or additional or separate trustee), in form satisfactory to the Trustee,
effectively secure all the Notes equally and ratably with, or prior to, such indebtedness.

     Notwithstanding the foregoing provisions of this Section 303, the Company or a Subsidiary may
issue, assume or guarantee indebtedness secured by a mortgage which would otherwise be subject to
the foregoing restrictions in an aggregate amount which, together with all other indebtedness of
the Company or a Subsidiary secured by a mortgage which (if originally issued, assumed or
guaranteed at such time) would otherwise be subject to the foregoing restrictions (not including
indebtedness permitted to be secured under subdivisions (a) through (p) above) and the Value of all
Sale and Leaseback Transactions in existence at such time (other than any Sale and Leaseback
Transaction which, if such Sale and Leaseback Transaction had been a lien, would have been
permitted by paragraph (i), (j) or (k) of this Section 303 and other than Sale and Leaseback
Transactions as to which application of amounts have been made in accordance with Section 304) does
not at the time of incurrence of such indebtedness exceed 5% of Consolidated Net Tangible Assets.
“Value” means, with respect to a Sale and Leaseback Transaction, as of any particular time, the
amount equal to the greater of (1) the net proceeds from the sale or transfer of the property
leased pursuant to such Sale and Leaseback Transaction or (2) the fair value, in the opinion of the
Board of Directors, of such property at the time of entering into such Sale and Leaseback
Transaction, in either case divided first by the number of full years of the term of the lease and
then multiplied by the number of full years of such term remaining at the time of determination,
without regard to any renewal or extension options contained in the lease.

     For purposes of this Section 303, “Subsidiary” does not include a Project Finance Subsidiary.

     Section 304. Restrictions on Sale and Leaseback Transactions. The Company shall not, nor
shall it permit any Subsidiary to, enter into any Sale and Leaseback Transaction unless the net
proceeds of such sale are at least equal to the fair value (as determined by the Board of
Directors) of such Principal Property and either (a) the Company or such Subsidiary would be
entitled, pursuant to the provisions of (1) paragraph (i) or (j) of Section 303 or (2) paragraph
(k) of Section 303, to incur indebtedness secured by a lien on the Principal Property to be leased
without equally and ratably securing the Notes, or (b) the Company shall, and in any such case the
Company covenants that it will, within 120 days of the effective date of any such arrangement,
apply an amount not less than the fair value (as so determined) of such Principal Property (i) to
the payment or other retirement of Funded Debt incurred or assumed by the Company which ranks
senior to or pari passu with the Notes or of Funded Debt incurred or assumed by any Subsidiary
(other than, in either case, Funded Debt owned by the Company or any Subsidiary), or (ii) to the
purchase at not more than fair value (as so determined) of Principal Property (other than the
Principal Property involved in such sale). For this purpose, “Funded Debt” means any indebtedness
which by its terms matures at or is extendable or renewable at the sole option of the obligor
thereon without requiring the consent of the obligee to a date more than 12 months after the date
of the creation of such indebtedness.

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     For purposes of this Section 304, “Subsidiary” does not include a Project Finance Subsidiary.

     Section 305. Expiration of Restrictions on Liens and Restrictions on Sale and Leaseback
Transactions. Notwithstanding anything to the contrary herein, on the date (the “Termination
Date”) (and continuing thereafter) on which there remains outstanding, in the aggregate, no more
than $200,000,000 in principal amount of Long-Term Indebtedness, the covenants of the Company set
forth in Sections 303 and 304 hereof shall terminate and the Company shall no longer be subject to
the covenants set forth in such Sections.

ARTICLE FOUR

Optional Redemption of the Notes

     Section 401. Redemption Price.

     (a) The Company shall have the right to redeem the Notes, in whole or in part, at its option
at any time from time to time at a price equal to (i) 100% of the principal amount thereof plus
(ii) accrued and unpaid interest thereon, if any, to (but excluding) the Redemption Date plus (iii)
the Make-Whole Premium, if any (collectively, the “Redemption Price”).

     (b) The amount of the Make-Whole Premium with respect to any Note (or portion thereof) to be
redeemed will be equal to the excess, if any, of: (i) the sum of the present values, calculated as
of the Redemption Date, of: (A) each interest payment that, but for such redemption, would have
been payable on the Note (or portion thereof) being redeemed on each Interest Payment Date
occurring after the Redemption Date (excluding any accrued and unpaid interest for the period prior
to the Redemption Date); and (B) the principal amount that, but for such redemption, would have
been payable on the Note (or portion thereof) being redeemed at the Maturity Date; over (ii) the
principal amount of the Note (or portion thereof) being redeemed. The present values of interest
and principal payments referred to in clause (i) above will be determined in accordance with
generally accepted principles of financial analysis. Such present values will be calculated by
discounting the amount of each payment of interest or principal from the date that each such
payment would have been payable, but for the redemption, to the Redemption Date at a discount rate
equal to the Comparable Treasury Yield (as defined below) plus 25 basis points.

     (c) The Make-Whole Premium shall be calculated by an independent investment banking
institution of national standing appointed by the Company; provided, that if the Company fails to
make such appointment at least 45 days prior to the Redemption Date, or if the institution so
appointed is unwilling or unable to make such calculation, such calculation shall be made by
Citigroup Global Markets Inc., Morgan Stanley & Co. Incorporated or UBS Securities LLC, or, if such
firms are unwilling or unable to make such calculation, by a different independent investment
banking institution of national standing appointed by the Company (in any such case, an
“Independent Investment Banker”).

     Section 402. Make-Whole Premium Calculation.

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     (a) For purposes of determining the Make-Whole Premium, “Comparable Treasury Yield” means a
rate of interest per annum equal to the weekly average yield to maturity of United States Treasury
securities that have a constant maturity that corresponds to the remaining term to maturity of the
Notes to be redeemed, calculated to the nearest 1/12th of a year (the “Remaining Term”). The
Comparable Treasury Yield shall be determined as of the third Business Day immediately preceding
the applicable Redemption Date.

     (b) The weekly average yields of United States Treasury securities shall be determined by
reference to the most recent statistical release published by the Federal Reserve Bank of New York
and designated “H.15 (519) Selected Interest Rates” or any successor release (the “H.15 Statistical
Release”). If the H.15 Statistical Release sets forth a weekly average yield for United States
Treasury securities having a constant maturity that is the same as the Remaining Term, then the
Comparable Treasury Yield shall be equal to such weekly average yield. In all other cases, the
Comparable Treasury Yield shall be calculated by interpolation, on a straight-line basis, between
the weekly average yields on the United States Treasury securities that have a constant maturity
closest to and greater than the Remaining Term and the United States Treasury securities that have
a constant maturity closest to and less than the Remaining Term (in each case as set forth in the
H.15 Statistical Release). Any weekly average yields so calculated by interpolation shall be
rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded
upward. If weekly average yields for United States Treasury securities are not available in the
H.15 Statistical Release or otherwise, then the Comparable Treasury Yield shall be calculated by
interpolation of comparable rates selected by the Independent Investment Banker.

     Section 403. Partial Redemption. If the Company redeems the Notes in part pursuant to this
Article Four, the Trustee shall select the Notes to be redeemed on a pro rata basis or by lot or by
such other method that the Trustee in its sole discretion deems fair and appropriate. The Company
shall redeem Notes pursuant to this Article Four in multiples of $1,000 in original principal
amount. A new Note in principal amount equal to the unredeemed portion of the original Note shall
be issued upon cancellation of the original Note.

     Section 404. Notice of Optional Redemption. If the Company elects to exercise its right to
redeem all or some of the Notes pursuant to this Article Four, the Company or the Trustee shall
mail a notice of such redemption to each Holder of a Note that is to be redeemed not less than 30
days and not more than 60 days before the Redemption Date. If any Note is to be redeemed in part
only, the notice of redemption shall state the portion of the principal amount to be redeemed.

ARTICLE FIVE

REMEDIES

     Section 501. Additional Event of Default; Acceleration of Maturity.

     (a) Solely with respect to the Notes issued hereby, Section 501(7) of the Original Indenture
is hereby deleted in its entirety, and the following is substituted in lieu thereof as an

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“Event of Default” in addition to the other events set forth in Section 501 of the Original
Indenture:

“(7) the default by the Company or any Subsidiary, other than a Project
Finance Subsidiary, in the payment, when due, after the expiration of any
applicable grace period, of principal of indebtedness for money borrowed,
other than Non-Recourse Debt, in the aggregate principal amount then
outstanding of $50 million or more, or acceleration of any indebtedness for
money borrowed in such aggregate principal amount so that it becomes due and
payable prior to the date on which it would otherwise have become due and
payable and such acceleration is not rescinded or such default is not cured
within 30 days after there has been given, by registered or certified mail,
to the Company by the Trustee or to the Company and the Trustee by the
holders of at least 25% in principal amount of Notes written notice
specifying such default and requiring the Company to cause such acceleration
to be rescinded or such default to be cured and stating that such notice is
a “Notice of Default” under the Indenture;”.

     (b) Solely with respect to the Notes issued hereby, the first paragraph of Section 502 of the
Original Indenture is hereby deleted in its entirety, and the following is substituted in lieu
thereof:

“If an Event of Default (other than an Event of Default specified in Section
501(5) or 501(6)) with respect to the Notes at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not
less than 25% in principal amount of the Notes Outstanding may declare the
principal amount of all the Notes to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders),
and upon any such declaration such principal amount (or specified amount)
shall become immediately due and payable. If an Event of Default specified
in Section 501(5) or 501(6) with respect to the Notes at the time
Outstanding occurs and is continuing, the principal amount of all the Notes
shall automatically, and without any declaration or other action on the part
of the Trustee or any Holder, become immediately due and payable.”

     Section 502. Expiration of Additional Event of Default. Notwithstanding anything to the
contrary herein, on the Termination Date (and continuing thereafter), the event of default of the
Company set forth in Section 501(a) hereof shall terminate and the Company shall no longer be
subject to such event of default.

-14-

 

ARTICLE SIX

Miscellaneous Provisions

     Section 601. The Indenture, as supplemented and amended by this Supplemental Indenture No. 11,
is in all respects hereby adopted, ratified and confirmed.

     Section 602. This Supplemental Indenture No. 11 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 603. THIS SUPPLEMENTAL INDENTURE NO. 11 AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

     Section 604. If any provision in this Supplemental Indenture No. 11 limits, qualifies or
conflicts with another provision hereof which is required to be included herein by any provisions
of the Trust Indenture Act, such required provision shall control.

     Section 605. In case any provision in this Supplemental Indenture No. 11 or the Notes 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 606. The recitals contained herein shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the proper authorization or due execution hereof or of the Notes by the
Company.

-15-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 11 to be
duly executed, as of the day and year first written above.

	 	 	 	 	 
	 	CENTERPOINT ENERGY RESOURCES CORP.

 	 
	 	By:  	
 	 
	 	 	Name:  	Gary L. Whitlock 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 
	 

	 	 	 	 	 
	Attest:

_____________________________________

Name: Richard B. Dauphin

Title: Assistant Corporate Secretary

 	 	 

(SEAL)

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, NATIONAL
ASSOCIATION,
 As Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	Marcella Burgess 	 
	 	 	Title:  	Assistant Vice President 	 

(SEAL)

-16-

 

Exhibit A

[FORM OF FACE OF SECURITY]

[IF THIS SECURITY IS TO BE A GLOBAL SECURITY -] THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY.

[For as long as this Global Security is deposited with or on behalf of The Depository Trust Company
it shall bear the following legend.] Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”), to CenterPoint
Energy Resources Corp. or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in 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.

CENTERPOINT ENERGY RESOURCES CORP.

6.125% Senior Notes due 2017

	 	 	 
	No. _________

	 	$______

	 

	 	CUSIP No. 15189W AC4

     CENTERPOINT ENERGY RESOURCES CORP., a corporation duly organized and existing under the laws
of the State of Delaware formerly known as NorAm Energy Corp. (herein called the “Company,” which
term includes any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to __________________, or registered assigns, the principal sum of
__________________ Dollars on November 1, 2017, and to pay interest thereon from October 23, 2007
or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on May 1 and November 1 in each year, commencing May 1, 2008, at the rate of 6.125%
per annum, until the principal hereof is paid or made available for payment, provided that
any principal and premium, and any such installment of interest, which is overdue shall bear
interest at the rate of 6.125% per annum (to the extent permitted by applicable law), from the
dates such amounts are due until they are paid or made available for payment, and such interest
shall be payable on demand. The amount

A-1

 

of interest payable for any period shall be computed on the basis of twelve 30-day months and
a 360-day year. The amount of interest payable for any partial period shall be computed on the
basis of a 360-day year of twelve 30-day months and the days elapsed in any partial month. In the
event that any date on which interest is payable on this Security is not a Business Day, then a
payment of the interest payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such delay) with the same
force and effect as if made on the date the payment was originally payable. A “Business Day” shall
mean, when used with respect to any Place of Payment, each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the April 15 or
October 15 (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease
to be payable to the Holder on such Regular Record Date and shall either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Securities of this series may be listed or traded, and upon such notice as may be
required by such exchange or automated quotation system, all as more fully provided in said
Indenture.

     Payment of the principal of (and premium, if any) and any such interest on this Security will
be made at the Corporate Trust Office of the Trustee, in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of interest may be
made (i) by check mailed to the address of the Person entitled thereto as such address shall appear
in the Security Register or (ii) by wire transfer in immediately available funds at such place and
to such account as may be designated in writing by the Person entitled thereto as specified in the
Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

A-2

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	Dated:  October 23, 2007 	CENTERPOINT ENERGY RESOURCES CORP.

 	 
	 	By:  	
 	 
	 	 	Name:  	Gary L. Whitlock 	 
	(SEAL)	 	Title:  	      Executive Vice President and Chief
Financial Officer 	 

	 	 	 	 	 
	Attest:

_____________________________________

Name: Richard B. Dauphin

Title: Assistant Corporate Secretary

 	 	 

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, NATIONAL
ASSOCIATION 
 As Trustee

 	 

Date of Authentication:________________

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-3

 

	 	 	 	 	 

[FORM OF REVERSE SIDE OF SECURITY]

CENTERPOINT ENERGY RESOURCES CORP.

6.125% SENIOR NOTES DUE 2017

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
February 1, 1998 (herein called the “Indenture”, which term shall have the meaning assigned to it
in such instrument), between the Company and The Bank of New York Trust Company, National
Association (successor to JPMorgan Chase Bank, National Association (formerly Chase Bank of Texas,
National Association)), as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof, initially limited in aggregate principal amount to
$250,000,000; provided, however, that the authorized aggregate principal amount of
the Securities may be increased above such amount by a Board Resolution to such effect.

     The Company shall have the right to redeem the Securities of this series, in whole or in part,
at its option at any time from time to time at a price equal to (i) 100% of the principal amount
thereof plus (ii) accrued and unpaid interest thereon, if any, to (but excluding) the Redemption
Date plus (iii) the Make-Whole Premium, if any.

     The amount of the Make-Whole Premium with respect to any Security of this Series (or portion
thereof) to be redeemed will be equal to the excess, if any, of: (i) the sum of the present
values, calculated as of the Redemption Date, of: (A) each interest payment that, but for such
redemption, would have been payable on the Security of this series (or portion thereof) being
redeemed on each Interest Payment Date occurring after the Redemption Date (excluding any accrued
and unpaid interest for the period prior to the Redemption Date); and (B) the principal amount
that, but for such redemption, would have been payable on the Security of this series (or portion
thereof) being redeemed at November 1, 2017; over (ii) the principal amount of the Security of this
series (or portion thereof) being redeemed. The present values of interest and principal payments
referred to in clause (i) above will be determined in accordance with generally accepted principles
of financial analysis. Such present values will be calculated by discounting the amount of each
payment of interest or principal from the date that each such payment would have been payable, but
for the redemption, to the Redemption Date at a discount rate equal to the Comparable Treasury
Yield (as defined below) plus 25 basis points.

     For purposes of determining the Make-Whole Premium, “Comparable Treasury Yield” means a rate
of interest per annum equal to the weekly average yield to maturity of United States Treasury
securities that have a constant maturity that corresponds to the remaining term to maturity of the
Securities of this series, calculated to the nearest 1/12th of a year (the “Remaining Term”). The
Comparable Treasury Yield shall be determined as of the third Business Day immediately preceding
the Redemption Date.

A-4

 

     The weekly average yields of United States Treasury securities shall be determined by
reference to the most recent statistical release published by the Federal Reserve Bank of New York
and designated “H.15 (519) Selected Interest Rates” or any successor release (the “H.15 Statistical
Release”). If the H.15 Statistical Release sets forth a weekly average yield for United States
Treasury securities having a constant maturity that is the same as the Remaining Term, then the
Comparable Treasury Yield shall be equal to such weekly average yield. In all other cases, the
Comparable Treasury Yield shall be calculated by interpolation, on a straight-line basis, between
the weekly average yields on the United States Treasury securities that have a constant maturity
closest to and greater than the Remaining Term and the United States Treasury securities that have
a constant maturity closest to and less than the Remaining Term (in each case as set forth in the
H.15 Statistical Release). Any weekly average yields so calculated by interpolation shall be
rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded
upward. If weekly average yields for United States Treasury securities are not available in the
H.15 Statistical Release or otherwise, then the Comparable Treasury Yield shall be calculated by
interpolation of comparable rates selected by the Independent Investment Banker.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Securities of this series are not entitled to the benefit of any sinking fund.

     The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of
this Security upon compliance by the Company with certain conditions set forth in the Indenture.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security,
in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this

A-5

 

Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees. No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

A-6

 

     THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

A-7

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