Document:

Exhibit 10.B

    EXHIBIT
      10.B

     

    

    [EXECUTION
      COPY]

    

    

    

    
      

      

    

    

     

    

    

    

    SECOND
      TIER

    RECEIVABLES
      SALE
      AGREEMENT

    

    

    dated
      as of
      August 31, 2006

    

    

    between

    

    

    TGP
      FINANCE
      COMPANY, L.L.C.,

    as
      Seller

    

    

    and

    

    

    TGP
      FUNDING
      COMPANY, L.L.C.,

    as
      Buyer

    

    

    

    

    

    

    
      

      

    

    

     

    

      

TABLE
      OF
      CONTENTS

      
         

         

        
          	 	 	
                  Page

                
	 	 	
                   

                
	
                  ARTICLE
                    I    AMOUNTS AND TERMS 

                	
                  2

                
	 	
                  Section
                    1.1.
                    

                	
                  Purchase
                    of
                    Receivables

                	
                  2

                
	 	
                  Section
                    1.2.

                	
                  Payment
                    for
                    the Purchases

                	
                  3

                
	 	
                  Section
                    1.3.
                    

                	
                  Purchase
                    Price Credit and other Adjustments

                	
                  4

                
	 	
                  Section
                    1.4.
                    

                	
                  Payments
                    and
                    Computations, Etc.

                	
                  5

                
	 	
                  Section
                    1.5.
                    

                	
                  Transfer
                    of
                    Records

                	
                  5

                
	 	
                  Section
                    1.6.
                    

                	
                  Rights
                    under
                    Lock-Boxes, Blocked Accounts and First Tier Sale Agreement

                	
                  5

                
	 	
                  Section
                    1.7.
                    

                	
                  Characterization

                	
                  6

                
	
                   

                	 	
                   

                
	
                  ARTICLE
                    II    REPRESENTATIONS AND
                    WARRANTIES 

                	
                  6

                
	 	
                  Section
                    2.1.
                    

                	
                  Representations
                    and Warranties of Finance LLC

                	
                  6

                
	
                   

                	 	 
	
                  ARTICLE
                    III    CONDITIONS OF PURCHASE 

                	
                  10

                
	 	
                  Section
                    3.1.
                    

                	
                  Condition
                    Precedent to Purchases

                	
                  10

                
	
                   

                	 	
                   

                
	
                  ARTICLE
                    IV    COVENANTS 

                	
                  10

                
	 	
                  Section
                    4.1.
                    

                	
                  Affirmative
                    Covenants of Finance LLC

                	
                  10

                
	 	
                  Section
                    4.2.
                    

                	
                  Negative
                    Covenants of Finance LLC

                	
                  16

                
	
                   

                	 	
                   

                
	
                  ARTICLE
                    V    TERMINATION EVENTS 

                	
                  17

                
	 	
                  Section
                    5.1.
                    

                	
                  Termination
                    Events

                	
                  17

                
	 	
                  Section
                    5.2.
                    

                	
                  Remedies

                	
                  18

                
	
                   

                	 	
                   

                
	
                  ARTICLE
                    VI    INDEMNIFICATION 

                	
                  19

                
	 	
                  Section
                    6.1.
                    

                	
                  Indemnities
                    by Finance LLC 

                	
                  19

                
	 	
                  Section
                    6.2.
                    

                	
                  Other
                    Costs
                    and Expenses 

                	
                  21

                
	
                   

                	 	
                   

                
	
                  ARTICLE
                    VII    MISCELLANEOUS 

                	
                  21

                
	 	
                  Section
                    7.1.
                    

                	
                  Waivers
                    and
                    Amendments

                	
                  21

                
	 	
                  Section
                    7.2.
                    

                	
                  Notices 

                	
                  22

                
	 	
                  Section
                    7.3.
                    

                	
                  Protection
                    of
                    Ownership Interests of Buyer 

                	
                  22

                
	 	
                  Section
                    7.4.
                    

                	
                  Confidentiality 

                	
                  22

                
	 	
                  Section
                    7.5.
                    

                	
                  Bankruptcy
                    Petition 

                	
                  23

                
	 	
                  Section
                    7.6.
                    

                	
                  CHOICE
                    OF
                    LAW 

                	
                  23

                
	 	
                  Section
                    7.7.
                    

                	
                  CONSENT
                    TO
                    JURISDICTION 

                	
                  23

                
	 	
                  Section
                    7.8.
                    

                	
                  WAIVER
                    OF
                    JURY TRIAL 

                	
                  24

                
	 	
                  Section
                    7.9.
                    

                	
                  Integration;
                    Binding Effect; Survival of Terms 

                	
                  24

                
	 	
                  Section
                    7.10.
                    

                	
                  Counterparts;
                    Severability; Section References 

                	
                  24

                

        

        

        

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      LIST
        OF EXHIBITS
        AND SCHEDULES

      

      

      
        	 EXHIBIT
                I 	 Definitions
	 EXHIBIT
                II 	 Principal
                Places Of Business; Etc.
	 	 
	 SCHEDULE A 	 Disclosure
                Information Delivered

      

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    

    
 

    

    TENNESSEE
      GAS
      PIPELINE COMPANY

    

    SECOND
      TIER

    RECEIVABLES
      SALE
      AGREEMENT

    

    

    THIS
      SECOND TIER
      RECEIVABLES SALE AGREEMENT, dated as of August 31, 2006, is by and between
      TGP FINANCE COMPANY, L.L.C., a Delaware limited liability (“Finance
      LLC”),
      and TGP FUNDING
      COMPANY, L.L.C., a Delaware limited liability company (“Buyer”).
      Unless defined
      elsewhere herein, capitalized terms used in this Agreement shall have the
      meanings assigned to such terms in, or as otherwise provided in, Exhibit I.

     

    PRELIMINARY
      STATEMENTS

    

    Finance
      LLC is
      party to that certain First Tier Receivables Purchase Agreement dated as of
      August 31, 2006 (as the same may from time to time hereafter be amended,
      supplemented, restated or otherwise modified, the “First
      Tier Sale
      Agreement”)
      between
      Tennessee Gas Pipeline Company, a Delaware corporation (“Originator”),
      and Finance
      LLC, pursuant to which Originator will sell and assign to Finance LLC, and
      Finance LLC will purchase from Originator, all of Originator’s right, title and
      interest in and to Receivables, together with the Related Security and
      Collections with respect thereto. Finance LLC wishes to sell and assign to
      Buyer, and Buyer wishes to purchase from Finance LLC, immediately following
      the
      purchase of Receivables from Originator, all of Finance LLC’s right, title and
      interest in and to such Receivables, together with the Related Security and
      Collections with respect thereto. Finance LLC and Buyer intend the transactions
      contemplated hereby to be true sales of the Receivables from Finance LLC to
      Buyer, providing Buyer with the full benefits of ownership of the Receivables,
      and Finance LLC and Buyer do not intend these transactions to be, or for any
      purpose (other than the Intended Characterization) to be characterized as,
      loans
      from Buyer to Finance LLC. Immediately following the purchase of Receivables
      from Finance LLC, Buyer will (i) issue undivided interests (intended to
      constitute senior beneficial interests) in such Receivables and the associated
      Related Security and Collections (the “Investor
      Interests”)
      pursuant to that
      certain Receivables Purchase Agreement dated as of August 31, 2006 (as the
      same may from time to time hereafter be amended, supplemented, restated or
      otherwise modified, the “Purchase
      Agreement”)
      among Buyer,
      Tennessee Gas Pipeline Company, as Servicer, the “Investors” and “Managing
      Agents” from time to time party thereto and BNP Paribas, New York Branch, as
      Program Agent (in such capacity, and including any successor agent appointed
      pursuant to the terms of the Purchase Agreement, the “Program
      Agent”),
      and (ii) issue
      an undivided interest (intended to constitute a junior beneficial interest)
      in
      such Receivables and the associated Related Security and Collections (the
“Junior
      Interest”)
      to Finance
      LLC.

     

    ARTICLE
      I

     

    AMOUNTS
      AND
      TERMS

     

    Section
      1.1.  Purchase
      of
      Receivables.

     

    (a)  Upon
      the terms and
      subject to the conditions hereof, Buyer hereby agrees to purchase, and Finance
      LLC hereby agrees to sell, all of Finance LLC’s right, title and interest in and
      to all of its Receivables (each such transaction, a “Purchase”).
      On the date of
      Finance LLC’s initial purchase of Receivables from Originator pursuant to the
      First Tier Sale Agreement (the “Initial
      Purchase Date”),
      Buyer shall
      purchase, and Finance LLC shall sell, transfer and convey, all of Finance LLC’s
      right, title and interest in and to all Receivables then outstanding, together
      with all Related Security relating thereto and all Collections thereof. On
      each
      Business Day thereafter until the Termination Date, Buyer shall purchase, and
      Finance LLC shall sell, transfer and convey, all of Finance LLC’s right, title
      and interest in and to all Receivables which were not previously purchased
      by
      Buyer hereunder, together in each case with all Related Security relating
      thereto and all Collections thereof. Prior to making the initial Purchase
      hereunder, Buyer may request of Finance LLC, and Finance LLC shall deliver,
      such
      approvals, opinions, information, reports or documents as Buyer may reasonably
      request.

     

    (b)  It
      is the intention
      of the parties hereto that each Purchase of Receivables made hereunder shall
      constitute a “sale of accounts” (as such term is used in Article 9 of the
      UCC), which sales are absolute and irrevocable and shall provide Buyer with
      the
      full benefits of ownership of the Receivables. Except for the Purchase Price
      Credits, Repurchase Prices and Special Adjustment Credits owed pursuant to
      Section 1.3,
      each sale of
      Receivables hereunder is made without recourse to Finance LLC; provided
      that (i) Finance
      LLC shall be liable to Buyer for all representations, warranties and covenants
      made by Finance LLC pursuant to the terms of the Transaction Documents to which
      Finance LLC is a party, and (ii) such sale does not constitute and is not
      intended to result in an assumption by Buyer or any assignee thereof of any
      obligation of Finance LLC or any other Person arising in connection with the
      Receivables, the related Contracts, the Related Security or any other
      obligations of Finance LLC. In view of the intention of the parties hereto
      that
      the Purchases of Receivables made hereunder shall constitute sales of such
      Receivables rather than loans secured thereby, Finance LLC agrees, on or prior
      to the Initial Purchase Date and in accordance with Section 4.1(f)(ii),
      to mark its
      master data processing records relating to the Receivables with a legend
      acceptable to Buyer and to the Program Agent (as Buyer’s assignee), evidencing
      that Buyer has purchased such Receivables as provided in this Agreement and
      to
      note in its financial statements that the Receivables have been sold to Buyer.
      Upon the request of Buyer or the Program Agent (as Buyer’s assignee), Finance
      LLC will execute and file such financing or continuation statements, or
      amendments thereto or assignments thereof, and such other instruments or
      notices, as may be necessary or appropriate to perfect and maintain the
      perfection of Buyer’s ownership interest in the Receivables and the Related
      Security and Collections with respect thereto, or as Buyer or the Program Agent
      (as Buyer’s assignee) may reasonably request.

     

    Section
      1.2.  Payment
      for the
      Purchases.

     

    (a)  The
      Purchase Price
      for each Purchase of Receivables on the Initial Purchase Date in existence
      on
      the Initial Purchase Date shall be payable in full by Buyer to Finance LLC
      on
      such date, and shall be paid to Finance LLC in the following
      manner:

     

    (i)  by
      delivery of
      immediately available funds, to the extent of funds made available to Buyer
      in
      connection with its subsequent issue of Investor Interests under the Purchase
      Agreement (including Reinvestments thereunder) after the payment of its
      operating costs and any amounts payable under the Purchase Agreement; and

     

    (ii)  the
      balance, by
      issuing the Junior Interest to Seller.

     

    The
      Purchase Price
      for each Receivable purchased by Finance LLC pursuant to the First Tier Sale
      Agreement after the Initial Purchase Date shall be due and owing in full by
      Buyer to Finance LLC or its designee on the date each such Receivable is
      purchased by Finance LLC (except that Buyer may, with respect to any such
      Purchase Price, offset against such Purchase Price any amounts owed by Finance
      LLC to Buyer hereunder and which have become due but remain unpaid) and shall
      be
      paid to Finance LLC in the manner provided in the following paragraphs (b)
      and (c).

     

    (b)  With
      respect to any
      Receivables purchased by Finance LLC pursuant to the First Tier Sale Agreement,
      Buyer shall pay the Purchase Price therefor in the following manner:

     

    (i)  first,
      by delivery of
      immediately available funds on the Business Day on which purchase occurs to
      the
      extent of funds available to Buyer from its subsequent issue of Investor
      Interests under the Purchase Agreement (including Reinvestments thereunder)
      or
      other cash on hand;

     

    (ii)  second,
      on a deferred
      basis in the manner provided in the following paragraph (c);
      and

     

    (iii)  third,
      unless Buyer has
      declared the Termination Date to have occurred pursuant to Section 5.2,
      by an increase in
      the amount of the Junior Interest equal to the remaining unpaid balance of
      such
      Purchase Price.

     

    (c)  Although
      the
      Purchase Price for each Receivable purchased by Buyer pursuant to this Agreement
      after the Initial Purchase Date shall be due and payable in full by Buyer to
      Finance LLC on the date such Receivable was so purchased, settlement of the
      cash
      portion of the Purchase Price between Buyer and Finance LLC for purchases
      occurring during any Monthly Period shall be deferred, to the extent Buyer
      does
      not have funds available from its subsequent issue of Investor Interests under
      the Purchase Agreement (including Reinvestments thereunder) or other cash on
      hand on such Business Day and settled, with respect to all Receivables purchased
      by Buyer during such Monthly Period, on each subsequent Business Day on or
      prior
      to the next following Monthly Settlement Date to the extent of funds available
      to Buyer on such Business Day from subsequent issue of Investor Interests under
      the Purchase Agreement (including Reinvestments thereunder) or other cash on
      hand. Although settlement of the cash portion of the Purchase Price for
      Receivables shall be effected on a deferred basis as provided herein, any
      increase in the Junior Interest pursuant to clause (iii)
      of Section 1.2(b)
      in connection with
      the purchase thereof by Buyer shall be deemed to have occurred and shall be
      effective as of the Business Day on which such purchase occurred.

     

    (d)  From
      and after the
      Termination Date, Finance LLC shall not be obligated to (but may, at Finance
      LLC’s option) sell Receivables to Buyer on the terms of this
      Agreement.

     

    Section
      1.3.  Purchase
      Price
      Credit and other Adjustments.

     

    (a)  If
      on any
      day:

     

    (i)  the
      Net Outstanding
      Balance of a Receivable (other than the portion thereof constituting an
      Additional Amount) is:

     

    (A) reduced
      as a result
      of any defective or rejected goods or services, any discount or any adjustment
      (including as a result of billing errors or rate adjustments) or otherwise
      by
      Originator or Finance LLC (other than cash Collections on account of the
      Receivables), or

    

    (B) reduced
      or canceled
      as a result of a setoff in respect of any claim by any Person (whether such
      claim arises out of the same or a related transaction or an unrelated
      transaction), or

    

    (ii)  any
      of the
      representations and warranties set forth in Article II
      of the First Tier
      Sale Agreement are no longer true with respect to any Receivable (unless such
      untrue representation or warranty affects only any portion thereof constituting
      an Additional Amount),

     

    then,
      in such
      event, (i) unless Originator elects to repurchase such Receivable from Finance
      LLC pursuant to clause (y) of Section 1.3(a)
      of the First Tier
      Sale Agreement, Buyer shall be entitled to a credit (each, a “Purchase
      Price
      Credit”)
      equal to the
      amount of the Purchase Price Credit (as defined in the First Tier Sale
      Agreement) to which Finance LLC is entitled to receive with respect to such
      Receivable pursuant to Section 1.3(a)
      of the First Tier
      Sale Agreement, or (ii) if Originator elects to repurchase such Receivable
      from
      Finance LLC pursuant to clause (y) of Section 1.3(a)
      of the First Tier
      Sale Agreement, Finance LLC shall repurchase such Receivable from Buyer, without
      recourse, representation or warranty, for a repurchase price (each, a
“Repurchase
      Price”)
      equal to the
      Repurchase Price (as defined in the First Tier Sale Agreement) to which Finance
      LLC is entitled to receive with respect to such Receivable pursuant to
Section 1.3(a)
      of the First Tier
      Sale Agreement. The aggregate Purchase Price Credits and Repurchase Prices
      payable with respect to any day shall be due and payable within two Business
      Days after such day and shall (i) first be applied as a credit against the
      Purchase Price for the Receivables to be purchased by Buyer on the date of
      the
      payment thereof up to the amount of the cash portion thereof otherwise available
      to be paid to Finance LLC in cash pursuant to clause
      (i)
      or (ii)
      of Section 1.2(b)
      and (ii) second,
      to the extent of the balance thereof, paid by Finance LLC for the account of
      Buyer and its assigns on such date (but solely from cash payments received
      by
      Finance LLC from Originator pursuant to Section 1.3(a)
      of the First Tier
      Sale Agreement) by wire transfer of immediately available funds to the
      Collection Account maintained under the Purchase Agreement.

     

    (b)  On
      each day on
      which there is a Special Adjustment Amount payable under the Purchase Agreement,
      Buyer shall be entitled to a purchase price adjustment credit (each, a
“Special
      Adjustment Credit”)
      equal to the
      amount of such Special Adjustment Amount, which shall be due and payable on
      such
      day shall (i) first be applied as a credit against the Purchase Price for the
      Receivables to be purchased by Buyer on the date of the payment thereof up
      to
      the amount of the cash portion thereof otherwise available to be paid to
      Originator in cash pursuant to clause
      (i)
      or (ii)
      of Section 1.2(b),
      after giving
      effect to any reductions therein pursuant to Section 1.3(a),
      and (ii) second,
      to the extent of the balance thereof, paid in cash by Finance LLC to Buyer
      on
      such date (but solely from cash payments received by Finance LLC from Originator
      pursuant to Section 1.3(b)
      of the First Tier
      Sale Agreement).

     

    Section
      1.4.  Payments
      and
      Computations, Etc.
      All amounts to be
      paid or deposited by Buyer to Finance LLC hereunder shall be paid or deposited
      in accordance with the terms hereof on the day when due in immediately available
      funds to the account of Finance LLC as is designated from time to time by
      Finance LLC or as otherwise directed by Finance LLC. All amounts to be paid
      by
      Finance LLC to Buyer hereunder shall be paid in accordance with the terms hereof
      on the day when due in immediately available funds for the account of Buyer
      and
      its assigns to the Collection Account maintained under the Purchase Agreement
      or
      as otherwise directed by Buyer with the consent of the Program Agent. In the
      event that any payment owed by any Person hereunder becomes due on a day that
      is
      not a Business Day, then such payment shall be made on the next succeeding
      Business Day. If any Person fails to pay any amount hereunder when due, such
      Person agrees to pay, on demand, the Default Fee in respect thereof until paid
      in full; provided
      that such Default
      Fee shall not at any time exceed the maximum rate permitted by applicable law.
      All computations of interest payable hereunder shall be made on the basis of
      a
      year of 360 days for the actual number of days (including the first but
      excluding the last day) elapsed. 

     

    Section
      1.5.  Transfer
      of
      Records. 

     

    (a)  In
      connection with
      the Purchase of Receivables hereunder, Finance LLC hereby sells, transfers,
      assigns and otherwise conveys to Buyer all of Finance LLC’s right and title to
      and interest in the Records (to the extent assignable) relating to all
      Receivables sold hereunder, without the need for any further documentation
      in
      connection with the Purchase.

     

    (b)  Finance
      LLC shall
      take such action reasonably requested by Buyer or the Program Agent (as Buyer’s
      assignee), from time to time hereafter, that may be necessary or appropriate
      to
      ensure that Buyer and its assigns under the Purchase Agreement have an
      enforceable ownership interest in the Records (to the extent assignable)
      relating to the Receivables purchased from Finance LLC hereunder.

     

    Section
      1.6.  Rights
      under
      Lock-Boxes, Blocked Accounts and First Tier Sale Agreement.
      In consideration
      of Buyer’s purchase of Receivables hereunder, Finance LLC hereby sells and
      assigns to Buyer, all of Finance LLC’s rights under, in and to (but none of its
      obligations under) (a) each Lock-Box and Blocked Account and (b) the First
      Tier
      Receivables Sale Agreement (including (i) all payment rights thereunder, (ii)
      all rights to indemnification or reimbursement or similar rights arising
      thereunder, (iii) all representations and warranties made by Originator
      thereunder, and (iv) all UCC financing statements filed pursuant thereto),
      and
      all proceeds of thereof. In connection with such sale and assignment, Finance
      LLC agrees that Buyer and its assigns shall have the right to enforce Finance
      LLC’s rights and remedies under the First Tier Sale Agreement, to receive all
      amounts payable thereunder or in connection therewith, to consent to amendments,
      modifications or waivers thereof, and to direct, instruct or request any action
      thereunder, but in each case without any obligation on the part of Buyer or
      its
      assigns or any of its or their respective Affiliates to perform any of the
      obligations of Finance LLC under the First Tier Sale Agreement. From and after
      the occurrence of a Termination Event and during the continuance thereof, Buyer
      or its assigns shall have the exclusive right to direct the enforcement by
      Finance LLC of its rights under the First Tier Sale Agreement. Without limiting
      the generality of the foregoing, Finance LLC shall not consent to the
      eligibility of Excluded Receivables as Receivables under the First Tier Sale
      Agreement without the prior consent of Buyer.

     

    Section
      1.7.  Characterization.
      If,
      notwithstanding the intention of the parties expressed in Section 1.1(b),
      any sale or
      contribution by Finance LLC to Buyer of Receivables hereunder shall be
      characterized as a secured loan and not a sale or such sale shall for any reason
      be ineffective or unenforceable, then this Agreement shall be deemed to
      constitute a security agreement under the UCC and other applicable law. For
      this
      purpose and without being in derogation of the parties’ intention that each sale
      of Receivables hereunder shall constitute a true sale thereof, Finance LLC
      hereby grants to Buyer a duly perfected security interest in all of Finance
      LLC’s right, title and interest in, to and under all of the Receivables
      purchased or intended to be purchased by Buyer hereunder now existing and
      hereafter arising, all Collections, Related Security and Records with respect
      thereto, each Lock-Box and Blocked Account and all agreements related thereto,
      all of Finance LLC’s rights under, in and to the First Tier Receivables Sale
      Agreement (including (a) all payment rights thereunder, (b) all rights to
      indemnification arising thereunder, (c) all representations and warranties
      made
      by Originator thereunder, and (d) all UCC financing statements filed pursuant
      thereto), and all proceeds of the foregoing, which security interest shall
      be
      prior to all other Adverse Claims thereto. After the occurrence of a Termination
      Event, Buyer and its assigns shall have, in addition to the rights and remedies
      which they may have under this Agreement, all other rights and remedies provided
      to a secured creditor after default under the UCC and other applicable law,
      which rights and remedies shall be cumulative.

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.1.  Representations
      and Warranties of Finance LLC.
      Finance LLC
      hereby represents and warrants to Buyer that:

     

    (a)  Existence
      and
      Power.
      It is a limited
      liability company duly formed, validly existing and in good standing under
      the
      laws of its state of organization, and is duly qualified to do business and
      is
      in good standing as a foreign entity, and has and holds all power and all
      governmental licenses, authorizations, consents and approvals required to carry
      on its business in each jurisdiction in which its business is conducted except
      where the failure to so qualify or so hold could not reasonably be expected
      to
      have a Material Adverse Effect.

     

    (b)  Power
      and
      Authority; Due Authorization; Execution and Delivery.
      The execution and
      delivery by it of this Agreement and each other Transaction Document to which
      it
      is a party, the performance of its obligations hereunder and thereunder and
      its
      use of the proceeds of the Purchases made hereunder, are within its powers
      and
      authority and have been duly authorized by all necessary action on its part.
      This Agreement and each other Transaction Document to which it is a party have
      been duly executed and delivered by it.

     

    (c)  No
      Conflict.
      The execution and
      delivery by it of this Agreement and each other Transaction Document to which
      it
      is a party, and the performance of its obligations hereunder and thereunder
      do
      not contravene or violate (i) its limited liability company agreement or
      certificate of formation, (ii) any law, rule or regulation applicable to
      it, including the Natural Gas Act, as amended, and the rules and regulations
      of
      FERC thereunder, (iii) any restrictions under any agreement, contract or
      instrument to which it is a party or by which it or any of its property is
      bound, or (iv) any order, writ, judgment, award, injunction or decree
      binding on or affecting it or its property, and do not result in the creation
      or
      imposition of any Adverse Claim on assets of it or its Subsidiaries (except
      as
      created hereunder) except, in any case, where such contravention or violation
      could not reasonably be expected to have a Material Adverse Effect; and no
      transaction contemplated hereby requires compliance with any bulk sales act
      or
      similar law. 

     

    (d)  Governmental
      Authorization.
      No authorization
      or approval or other action by, and no notice to or filing with (except as
      have
      been given, made or obtained), any governmental authority or regulatory body
      (including FERC) is required for the due execution and delivery by it of this
      Agreement and each other Transaction Document to which it is a party and the
      performance of its obligations hereunder and thereunder, except for the filing
      of the financing statements required hereunder, which filings have been duly
      made. It does not, and will not during the term of this Agreement, engage in
      the
      transportation of natural gas in interstate commerce, or the sale in interstate
      commerce of such gas for resale. No authorization or approval or other action
      by, and no notice to or filing with FERC is required for the due execution
      and
      delivery by Buyer of this Agreement and each other Transaction Document to
      which
      it is a party and the performance of its obligations hereunder and
      thereunder.

     

    (e)  Actions,
      Suits.
      There is no
      litigation, action, suit or other legal or governmental proceeding pending,
      or
      to the best of its knowledge, threatened, against or affecting it, or any of
      its
      properties, in equity, or before or by any court, arbitrator or governmental
      authority relating to the transactions under this Agreement which, in any such
      case, could reasonably be expected to have a Material Adverse
      Effect.

     

    (f)  Binding
      Effect.
      This Agreement
      and each other Transaction Document to which it is a party constitute its legal,
      valid and binding obligations, enforceable against it in accordance with their
      respective terms, except as such enforcement may be limited by applicable
      bankruptcy, insolvency, reorganization or other similar laws relating to or
      limiting creditors’ rights generally and by general principles of equity
      (regardless of whether enforcement is sought in a proceeding in equity or at
      law).

     

    (g)  Accuracy
      of
      Information.
      All written
      information heretofore furnished by it or any of its Affiliates to Buyer (or
      its
      assigns) (i) pursuant to any requirement of this Agreement or any of the other
      Transaction Documents or (ii) listed or described on Schedule A hereto, is
      or, when furnished will be, true and accurate in all material respects on the
      date such information is stated or certified and does not and will not, when
      furnished, contain any material misstatement of fact or omit to state a material
      fact or any fact necessary to make the statements contained therein, when taken
      as a whole, not misleading (it being recognized that any projections or
      forecasts provided to Buyer or its assigns are based on estimates and
      assumptions believed in good faith by Financing LLC on the date hereof or (if
      later) the date of delivery to be reasonable as of their date, and that actual
      results during the periods covered by such projections or forecasts may differ
      from projected or forecasted results).

     

    (h)  Use
      of
      Proceeds.
      No proceeds of
      the Purchases hereunder will be used (i) for a purpose that violates, or
      would be inconsistent with, Regulation T, U or X promulgated by the Board of
      Governors of the Federal Reserve System from time to time or (ii) to
      acquire any security in any transaction which is subject to Section 12, 13
      or 14 of the Securities Exchange Act of 1934, as amended.

     

    (i)  Good
      Title.
      Each purchase of
      Receivables by Finance LLC from Originator pursuant to the First Tier Sale
      Agreement was made in good faith and without knowledge of any Adverse Claim
      against the Receivables purchased, except as contemplated by the Transaction
      Documents. Immediately prior to each purchase hereunder, Finance LLC shall
      be
      the legal and beneficial owner of the Receivables and Related Security with
      respect thereto, free and clear of any Adverse Claim, except as contemplated
      by
      the Transaction Documents. There have been duly filed all financing statements
      or other similar instruments or documents necessary under the UCC of all
      appropriate jurisdictions to perfect Finance LLC’s ownership interest in each
      Receivable, its Collections and the Related Security with respect
      thereto.

     

    (j)  Perfection.
      This Agreement,
      together with the filing of the financing statements contemplated hereby, is
      effective to transfer to Buyer (and Buyer shall acquire from it) legal and
      equitable title to, with the right to sell and encumber each Receivable existing
      or hereafter arising, together with the Related Security and Collections with
      respect thereto, free and clear of any Adverse Claim, except as created by
      the
      Transactions Documents. There have been duly filed all financing statements
      or
      other similar instruments or documents necessary under the UCC (or any
      comparable law) of all appropriate jurisdictions to perfect Buyer’s ownership
      interest in the Receivables, the Related Security and the
      Collections.

     

    (k)  Places
      of
      Business etc.
      Its principal
      place of business, chief executive office, jurisdiction of formation and the
      office where it keeps all of its Records are located at the address(es) and
      in
      the jurisdictions listed on Exhibit II
      or such other
      locations of which Buyer and its assigns has been notified in accordance with
      Section 4.2(a)
      and where all
      action required by Section 4.2(a)
      has been taken and
      completed. Its Federal Employer Identification Number and the organizational
      identification number from its jurisdiction of formation are correctly set
      forth
      on Exhibit II.
      In the past five
      years, it has not used any company names, trade names or assumed names other
      than the name in which it has executed this Agreement.

     

    (l)  Material
      Adverse
      Effect.
      Since the date of
      this Agreement, no event has occurred that would reasonably be expected to
      have
      a Material Adverse Effect.

     

    (m)  Ownership
      of
      Buyer.
      Finance LLC owns,
      directly or indirectly, 100% of the issued and outstanding equity interests
      of
      Buyer, free and clear of any Adverse Claim. Such equity interests are validly
      issued, fully paid and nonassessable, and there are no outstanding options,
      warrants or other rights to acquire equity interests or securities of Buyer.
      Finance LLC has not Subsidiaries other than Buyer.

     

    (n)  Not
      an
      Investment Company.
      It is not an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended, or any successor statute.

     

    (o)  Compliance
      with
      Law.
      It and its
      Subsidiaries have complied in all respects with all applicable laws, rules,
      regulations, orders, writs, judgments, injunctions, decrees or awards to which
      it or they may be subject, except where the failure to so comply could not
      reasonably be expected to have a Material Adverse Effect.

     

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

     

    (q)  Payments
      to
      Finance LLC, etc.
      With respect to
      each Receivable transferred to Finance LLC under the First Tier Sale Agreement,
      Finance LLC has given reasonably equivalent value to Originator in consideration
      therefor, and such transfer was not made for or on account of an antecedent
      debt. No transfer by Originator of any Receivable under the First Tier Sale
      Agreement is or may be voidable under any section of the Federal Bankruptcy
      Code
      or other statutory provisions or common law or equitable action by any Person.
      No transfer by Finance LLC of any Receivable under this Agreement is or may
      be
      voidable under any section of the Federal Bankruptcy Code or other statutory
      provisions or common law or equitable action by any Person.

     

    (r)  Compliance
      with
      Representations.
      On and as of the
      date of each Purchase and on and as of each subsequent date any Receivable
      is
      purchased by it pursuant to the First Tier Sale Agreement, it hereby represents
      and warrants that all of the other representations and warranties set forth
      in
      this Article II
      are true and
      correct on and as of each such date (and after giving effect to all Receivables
      purchased on each such date) as though made on and as of each such
      date.

     

    In
      addition to the representations and warranties set forth above in this
Section 2.1,
      Finance LLC
      acknowledges and agrees that Buyer and its assigns, as assignees of the First
      Tier Sale Agreement, have the benefit of the representations and warranties
      of
      Originator set forth therein.

     

    ARTICLE
      III

     

    CONDITIONS
      OF
      PURCHASE

     

    Section
      3.1.  Condition
      Precedent to Purchases.
      Buyer’s
      obligation to Purchase Receivables on any date shall be subject to the condition
      precedent that the Amortization Date shall not have occurred.

     

    ARTICLE
      IV

     

    COVENANTS

     

    Section
      4.1.  Affirmative
      Covenants of Finance LLC.
      Until the date on
      which this Agreement terminates in accordance with its terms, Finance LLC hereby
      covenants, as to itself, as set forth below:

     

    (a)  Financial
      Reporting.
      It will maintain,
      for itself and each of its Subsidiaries, a system of accounting established
      and
      administered in accordance with GAAP, and furnish to Buyer (and its
      assigns):

     

    (i)  Annual
      Reporting.
      Within 120 days
      after the close of each of Finance LLC’s fiscal years, unaudited financial
      statements (which shall include balance sheets, statements of income and changes
      in stockholders’ equity and a statement of cash flows) for such fiscal year, all
      certified by a Responsible Officer of Finance LLC as fairly presenting in all
      material respects the financial condition, results of operations and cash flows
      of Finance LLC in accordance with GAAP, subject to the omission of footnote
      disclosure.

     

    (ii)  Quarterly
      Reporting.
      Within 60 days
      after the close of the first three (3) quarterly periods of each of Finance
      LLC’s fiscal years, unaudited balance sheets of Finance LLC as at the close of
      each such period and statements of income and changes in stockholders’ equity
      and an unaudited statement of cash flows for Finance LLC for the period from
      the
      beginning of such fiscal year to the end of such quarter, all certified by
      a
      Responsible Officer of Finance LLC as fairly presenting in all material respects
      the financial condition, results of operations and cash flows of Finance LLC
      in
      accordance with GAAP, subject to normal year-end adjustments and omission of
      footnote disclosure.

     

    (b)  Notices.
      It will notify
      Buyer (and its assigns) in writing of or, if applicable, provide Buyer (and
      its
      assigns) copies of the following:

     

    (i)  Copies
      of
      Notices.
      Promptly upon its
      receipt of any notice, request for consent, financial statements, certification,
      report or other communication under or in connection with any Transaction
      Document from any Person other than Buyer or the Program Agent, copies of the
      same.

     

    (ii)  Other
      Information.
      Promptly, from
      time to time, such other information, documents, records or reports relating
      to
      the Receivables or its ability to perform its obligations under this Agreement
      as Buyer (or its assigns) may from time to time reasonably request in order
      to
      protect the interests of Buyer (and its assigns) under or as contemplated by
      this Agreement.

     

    (c)  It
      will notify
      Buyer in writing of any of the following promptly (and in any case within two
      Business Days) upon a Responsible Officer’s actual knowledge thereof, describing
      the same and, if applicable, the steps being taken with respect
      thereto:

     

    (i)  Termination
      Events or Potential Termination Events.
      Promptly (and in
      any case within two Business Days) upon a Responsible Officer’s actual knowledge
      of each Termination Event and each Potential Termination Event, by a statement
      of one of its Responsible Officers.

     

    (ii)  Judgment
      and
      Proceedings.
      The entry of any
      judgment or decree or the institution of any litigation, arbitration proceeding
      or governmental proceeding against Finance LLC.

     

    (iii)  Material
      Adverse
      Effect.
      The occurrence of
      any event or condition that has, or could reasonably be expected to have, a
      Material Adverse Effect.

     

    (iv)  Termination
      Date.
      The occurrence of
      the “Termination Date” under and as defined in the First Tier Sale
      Agreement.

     

    (d)  Compliance
      with
      Laws and Preservation of Existence.
      It will comply in
      all respects with all applicable laws, rules, regulations, orders, writs,
      judgments, injunctions, decrees or awards to which it may be subject, and will
      obtain and maintain all applicable authorizations or approvals from governmental
      authorities or regulatory bodies (including FERC), except where the failure
      to
      so comply or to obtain or maintain such authorization or approval could not
      reasonably be expected to have a Material Adverse Effect. It will preserve
      and
      maintain its limited liability company existence, rights, franchises and
      privileges in the jurisdiction of its organization, and qualify and remain
      qualified in good standing as a foreign entity in each jurisdiction where its
      business is conducted, except where the failure to so preserve and maintain
      or
      qualify could not reasonably be expected to have a Material Adverse
      Effect.

     

    (e)  Audits.
      It will furnish
      to Buyer and the Program Agent (as Buyer’s assignee) and their respective
      representatives at all times, upon reasonable prior notice, reasonable full
      access during regular business hours to all of its offices and Records
      (wheresoever located, including any repository used to store any such Records),
      as appropriate to verify its compliance with this Agreement, and permit Buyer
      and the Program Agent (as Buyer’s assignee) and their representatives to examine
      and audit the same, and make photocopies and/or computer tape or other digital
      media replicas thereof, and it agrees to render to Buyer and the Program Agent
      (as Buyer’s assignee) and their representatives, at its sole cost and expense,
      such clerical and other assistance as may be reasonably requested with regard
      thereto. Buyer and the Program Agent (as Buyer’s assignee) and their respective
      representatives shall also have the right to discuss its affairs with its
      officers and to verify under appropriate procedures the validity, amount,
      quality, quantity, value and condition of, or any other matter relating to,
      the
      Receivables and the Related Security. Prior to the occurrence of a Termination
      Event, the number and frequency of any such audits by the Program Agent (as
      Buyer’s assignee) shall be limited to such number and frequency as shall be
      reasonable in the exercise of the Program Agent’s reasonable commercial
      judgment, but shall in no event exceed one such audit per year. Each such audit
      shall be at the sole expense of Finance LLC.

     

    (f)  Keeping
      and
      Marking of Records and Books.

     

    (i)  It
      will maintain
      and implement administrative and operating procedures (including an ability
      to
      recreate records evidencing Receivables in the event of the destruction of
      the
      originals thereof), and keep and maintain all documents, books, records and
      other information reasonably necessary or advisable for the collection of all
      Receivables (including records adequate to permit the immediate identification
      of each new Receivable and all Collections of and adjustments to each existing
      Receivable). It will give Buyer (or its assigns) notice of any material change
      in the administrative and operating procedures referred to in the previous
      sentence. 

     

    (ii)  It
      will at all
      times maintain an account in its master records indicating the aggregate amount
      of Receivables sold by it to the Buyer hereunder and pledged by the Buyer to
      the
      Program Agent under the Purchase Agreement.

     

    (g)  Compliance
      with
      Contracts and Credit and Collection Policy.
      It will not take
      any action in contravention in any material respect of the Contracts related
      to
      the Receivables or the Credit and Collection Policy.

     

    (h)  Performance
      and
      Enforcement of First Tier Sale Agreement.
      It will perform
      its obligations and undertakings under and pursuant to the First Tier Sale
      Agreement, will purchase Receivables thereunder in compliance with the terms
      thereof and will, to the extent necessary in its reasonable business judgment,
      enforce the rights and remedies accorded to it under the First Tier Sale
      Agreement, provided,
      that after the
      Termination Date or the occurrence and during the continuation of a Termination
      Event, it shall enforce its rights and remedies under the First Tier Sale
      Agreement at the direction of Buyer (or its assigns). It will take all actions
      to perfect and enforce its rights and interests (and the rights and interests
      of
      its assigns) under the First Tier Sale Agreement as Buyer (or its assigns)
      may
      from time to time reasonably request, including making claims to which it may
      be
      entitled under any indemnity, reimbursement or similar provision contained
      in
      First Tier Sale Agreement.

     

    (i)  Ownership.
      It will take all
      necessary action to establish and maintain, irrevocably in Buyer, legal and
      equitable title to the Receivables, and to the Related Security and the
      Collections with respect to such Receivables, free and clear of any Adverse
      Claims other than Adverse Claims in favor of Buyer (and its assigns) (including
      the filing of all financing statements or other similar instruments or documents
      necessary under the UCC of all appropriate jurisdictions to perfect Buyer’s
      interest in such Receivables, Related Security and Collections and such other
      action to perfect, protect or more fully evidence the interest of Buyer as
      Buyer
      (or its assigns) may reasonably request).

     

    (j)  Investors’
      Reliance.
      Finance LLC
      acknowledges that Buyer and its assigns (including the Investors) are entering
      into the transactions contemplated by this Agreement and the other Transaction
      Documents in reliance upon Finance LLC’s identity as a legal entity that is
      separate from Originator or any Affiliate thereof (each, an “El
      Paso
      Entity”).
      Therefore, from
      and after the date of execution and delivery of this Agreement, Finance LLC
      shall take all reasonable steps, including all steps that Buyer (or its assigns)
      may from time to time reasonably request, to maintain Finance LLC’s identity as
      a separate legal entity and to make it manifest to third parties that Finance
      LLC is an entity with assets and liabilities distinct from those of any El
      Paso
      Entity thereof and not just a division of a El Paso Entity. Without limiting
      the
      generality of the foregoing and in addition to the other covenants set forth
      herein,

     

    (i)  Finance
      LLC
      shall:

     

    (A)  maintain
      books and
      records and bank accounts separate from those of any other Person;

     

    (B)  maintain
      its assets
      in such a manner that it is not costly or difficult to segregate, identify
      or
      ascertain such assets;

     

    (C)  comply
      with all
      organizational formalities necessary to maintain its separate
      existence;

     

    (D)  hold
      itself out to
      creditors and the public as a legal entity separate and distinct from any other
      entity;

     

    (E)  maintain
      separate
      financial statements, showing its assets and liabilities separate and apart
      from
      those of any other Person and not have its assets listed on any financial
      statement of any other Person; except that Finance LLC’s assets may be included
      in a consolidated financial statement of its Affiliate so long as appropriate
      notation is made on such consolidated financial statements to indicate the
      separateness of Finance LLC from such Affiliate and to indicate that Finance
      LLC’s assets and credit are not available to satisfy the debts and other
      obligations of such Affiliate or any other Person;

     

    (F)  prepare
      and file
      its own tax returns separate from those of any Person to the extent required
      by
      applicable law, and pay any taxes required to be paid by applicable
      law;

     

    (G)  allocate
      and charge
      fairly and reasonably any common employee or overhead shared with
      Affiliates;

     

    (H)  not
      enter into any
      transaction with Affiliates except on an arm’s-length basis and pursuant to
      written, enforceable agreements;

     

    (I)  conduct
      business in
      its own name, and use separate stationery, invoices and checks;

     

    (J)  not
      commingle its
      assets or funds with those of any other Person; 

     

    (K)  not
      assume,
      guarantee or pay the debts or obligations of any other Person;

     

    (L)  correct
      any known
      misunderstanding as to its separate identity;

     

    (M)  not
      permit any
      Affiliate to guarantee or pay its obligations; 

     

    (N)  not
      make loans or
      advances to any other person; 

     

    (O)  pay
      its liabilities
      and expenses out of its own funds; 

     

    (P)  maintain
      a
      sufficient number of employees in light of its contemplated business purpose
      and
      pay the salaries of its own employees, if any, only from its own
      funds;

     

    (Q)  maintain
      adequate
      capital in light of its contemplated business purpose, transactions and
      liabilities; provided,
      however,
      that the
      foregoing shall not require the member of Finance LLC to make additional capital
      contributions to Finance LLC;

     

    (R)  cause
      the managers,
      agents and other representatives of Finance LLC to act at all times with respect
      to Finance LLC consistently and in furtherance of the foregoing and in the
      best
      interests of Finance LLC;

     

    (S)  at
      all times have
      an Independent Manager and ensure that all limited liability company actions
      relating to (x) the selection, maintenance or replacement of the Independent
      Manager, (y) the dissolution or liquidation of Finance LLC or (z) the initiation
      of, participation in, acquiescence in or consent to any bankruptcy, insolvency,
      reorganization or similar proceeding involving Finance LLC, are duly authorized
      by unanimous consent of Finance LLC’s members and managers, including the
      Independent Manager; and

     

    (T)  take
      such other
      actions as are reasonably necessary on its part to ensure that the facts and
      assumptions set forth in the opinion issued by Andrews Kurth LLP, as counsel
      for
      Finance LLC, in connection with the closing of this Agreement and relating
      to
      substantive consolidation issues, and in the certificates accompanying such
      opinion, remain true and correct in all material respects at all times;
      and

     

    (ii)  Finance
      LLC shall
      not:

     

    (A)  guarantee
      any
      obligation of any Person, including any Affiliate or become obligated for the
      debts of any other Person or hold out its credit as being available to pay
      the
      obligations of any other Person;

     

    (B)  engage,
      directly or
      indirectly, in any business other than as required or permitted to be performed
      under this Agreement and the First Tier Sale Agreement;

     

    (C)  incur,
      create or
      assume any indebtedness or liabilities other than as expressly permitted under
      this Agreement and the First Tier Sale Agreement;

     

    (D)  make
      or permit to
      remain outstanding any loan or advance to, or own or acquire any stock or
      securities of, any Person other than as permitted under this Agreement and
      the
      First Tier Sale Agreement;

     

    (E)  to
      the fullest
      extent permitted by law, engage in any dissolution, liquidation, consolidation,
      merger, sale or other transfer of any of its assets outside the ordinary course
      of Finance LLC’s business;

     

    (F)  buy
      or hold
      evidence of indebtedness issued by any other Person (other than cash or
      investment-grade securities);

     

    (G)  form,
      acquire or
      hold any subsidiary (whether corporate, partnership, limited liability company
      or other) or own any equity interest in any other entity, except, in each case,
      for Buyer; or

     

    (H)  own
      any asset or
      property other than the Receivables and proceeds thereof, and such other
      property as is contemplated by this Agreement and the First Tier Sale
      Agreement.

     

    (k)  Collections.
      In the event any
      payments relating to Receivables are remitted directly to Finance LLC, Finance
      LLC will remit (or will cause all such payments to be remitted) directly to
      a
      Collection Bank and deposited into a Blocked Account within two (2) Business
      Days, and, at all times prior to such remittance, Finance LLC will itself hold
      or, if applicable, will cause such payments to be held in trust for the
      exclusive benefit of Buyer and its assigns. Finance LLC will not maintain any
      accounts or lockboxes, other than its operating account at Mellon Bank,
      N.A.

     

    (l)  Taxes.
      It will file all
      tax returns and reports required by law to be filed by it and promptly pay
      all
      taxes and governmental charges at any time owing, except any such taxes which
      are not yet delinquent or are being diligently contested in good faith by
      appropriate proceedings and for which adequate reserves in accordance with
      GAAP
      (if any) shall have been set aside on its books or where the failure to so
      file
      or pay could not reasonably be expected to have a Material Adverse
      Effect.

     

    (m)  Insurance.
      It will maintain
      in effect, or cause to be maintained in effect, at its own expense, such
      casualty and liability insurance as it shall deem appropriate in its good faith
      business judgment. It will pay, or cause to be paid, the premiums therefor.
      The
      foregoing requirements shall not be construed to negate, reduce or modify,
      and
      are in addition to, Finance LLC’s obligations hereunder.

     

    (n)  Payment
      to
      Originator.
      With respect to
      any Receivable purchased by Finance LLC from Originator, such sale shall be
      effected under, and in strict compliance with the terms of, the First Tier
      Sale
      Agreement, including the terms relating to the method of payment and amount
      and
      timing of payments to be made to Originator in respect of the purchase price
      for
      such Receivable.

     

    Section
      4.2.  Negative
      Covenants of Finance LLC.
      Until the date on
      which this Agreement terminates in accordance with its terms, Finance LLC hereby
      covenants that: 

     

    (a)  Name
      Change,
      Offices and Records.
      It will not (i)
      change its name, identity or corporate structure (within the meaning of the
      applicable enactment of the UCC) or relocate its chief executive office or
      any
      office where Records are kept unless it shall have: (A) given Buyer (or its
      assigns) at least forty-five (45) days’ prior written notice thereof and
      (B) delivered to Buyer (or its assigns) all financing statements,
      instruments, legal opinions and other documents requested by Buyer (or its
      assigns) in connection with such change or relocation, or (ii) change its
      jurisdiction of incorporation (within the meaning of the applicable enactment
      of
      the UCC) unless Buyer (and its assigns) shall have received from Finance LLC,
      prior to such change, (A) those items described in clause (i) hereof, and (B)
      if
      Buyer (or its assigns) shall so request, an opinion of counsel, in form and
      substance reasonably satisfactory to such Person, as to Finance LLC’s valid
      existence and good standing and the perfection and priority of Buyer’s ownership
      or security interest in the Receivables, the Related Security and Collections.
      In accordance with Section 7.9(b),
      the provisions of
      this Agreement shall apply to any successors or assigns.

     

    (b)  Change
      in
      Payment Instructions to Obligors.
      It will not add
      or terminate any bank as a Collection Bank, or make any change in the
      instructions to Obligors regarding payments to be made to any Lock-Box or
      Blocked Account, unless Buyer (or its assigns) shall have received, at least
      ten
      days before the proposed effective date therefor, (i) written notice of
      such addition, termination or change and (ii) with respect to the addition
      of a Collection Bank or a Blocked Account or Lock-Box, an executed Blocked
      Account Agreement with respect to the new Blocked Account or Lock-Box;
provided
      that it may make
      changes in instructions to Obligors regarding payments if such new instructions
      require such Obligor to make payments to another existing Blocked
      Account.

     

    (c)  Modifications
      to
      Contracts and Credit and Collection Policy.
      It will not, and
      will not exercise its rights under the First Tier Sale Agreement as to permit
      Originator to, make any change to the Credit and Collection Policy that could
      reasonably be expected to materially adversely affect the collectibility of
      the
      Receivables (other than Additional Receivables) or the credit quality of any
      newly created Receivables (other than Additional Receivables).

     

    (d)  Sales,
      Liens.
      It will not sell,
      assign (by operation of law or otherwise) or otherwise dispose of, or grant
      any
      option with respect to, or create or suffer to exist any Adverse Claim upon
      (including the filing of any financing statement) or with respect to, any
      Receivable, Related Security or Collections, or upon or with respect to any
      Contract under which any Receivable arises, or any Lock-Box or Blocked Account,
      or assign any right to receive income with respect thereto (other than, in
      each
      case, the creation of the interests therein in favor of Buyer provided for
      herein), and it will defend the right, title and interest of Buyer in, to and
      under any of the foregoing property, against all claims of third parties
      claiming through or under it.

     

    (e)  Accounting
      for
      Purchase.
      It will not, and
      will not permit any Affiliate to, account for or treat (whether in financial
      statements or otherwise) the transactions contemplated hereby in any manner
      other than the sale of the Receivables and the Related Security by it to Buyer
      or in any other respect account for or treat the transactions contemplated
      hereby in any manner other than as a sale of the Receivables and the Related
      Security by it to Buyer except to the extent that such transactions are not
      recognized on account of consolidated financial reporting in accordance with
      GAAP.

     

    (f)  Termination
      Date
      Determination; Modification of Sale Agreement.
      It will not (i)
      designate the Termination Date (as defined in the First Tier Receivables Sale
      Agreement), or (ii) send any written notice to Originator in respect thereof,
      in
      each case without the prior written consent of Buyer (or its assigns), except
      with respect to the occurrence of such Termination Date arising pursuant to
      Section 5.1(d)
      of the First Tier
      Sale Agreement. It will not amend or otherwise modify or terminate the First
      Tier Sale Agreement without the written consent of Buyer (or its assigns),
      except with respect to a termination upon the occurrence of a Termination Date
      arising pursuant to Section 5.1(d)
      of the First Tier
      Sale Agreement.

     

    (g)  Mergers,
      Acquisitions etc.
      It will not merge
      into or consolidate with any other Person or permit any other Person to merge
      with or into or consolidate with it, or purchase, lease or otherwise acquire
      (in
      one transaction or a series of transactions) all or substantially all of the
      assets of any other Person (whether directly by purchase, lease or other
      acquisition of all or substantially all of the assets of such Person or
      indirectly by purchase or other acquisition of all or substantially all of
      the
      capital stock of such other Person) other than acquisitions of Receivables
      pursuant to the First Tier Sale Agreement.

     

    ARTICLE
      V

     

    TERMINATION
      EVENTS

     

    Section
      5.1.  Termination
      Events.
      The occurrence of
      any one or more of the following events shall constitute a Termination
      Event:

     

    (a)  Finance
      LLC shall
      fail (i) to make any payment or deposit required hereunder when due and
      such failure continues for two Business Days, (ii) to perform or observe
      any term, covenant or agreement contained in Section 4.1(b),
4.1(c)
      or 4.1(h)-(j),
Section 4.2
      (other than as
      referred to in clause (i) of this subsection (a)
      or Section 5.1(d)),
      and such failure
      shall continue for five consecutive Business Days after the earlier of receipt
      of written notice thereof from Buyer (or its assignees) or Finance LLC’s
      Responsible Officer’s or other corporate officer’s actual knowledge thereof or
      (iii) to perform or observe any term, covenant or agreement hereunder
      (other than as referred to in clause (i) or (ii) of this subsection (a)
      or Section 5.1(d))
      and such failure
      shall continue for twenty consecutive days after the earlier of receipt of
      written notice thereof from Buyer (or its assignees) or Finance LLC’s
      Responsible Officer’s or other corporate officer’s actual knowledge
      thereof.

     

    (b)  Any
      representation,
      warranty, certification or statement made by Finance LLC in this Agreement,
      any
      other Transaction Document or in any other document delivered pursuant hereto
      or
      thereto shall prove to have been (i) with respect to any representations
      warranties, certifications or statements which contain a materiality qualifier,
      incorrect in any respect when made or deemed made and (ii) with respect to
      any representations, warranties, certifications or statements which do not
      contain a materiality qualifier, incorrect in any material respect when made
      or
      deemed made; provided
      that a Termination
      Event shall be deemed not to have occurred under this clause (b) with
      respect to a breach of a representation or warranty made or deemed made in
      this
      Agreement with respect to a Receivable if Finance LLC has accepted reassignment
      of such Receivable in accordance with and by the date required by Section
      1.3(a)
      of this Agreement
      or with respect to a breach of a representation or warranty made or deemed
      made
      in this Agreement with respect to a Receivable which breach affects only
      Additional Amounts.

     

    (c)  Failure
      of Finance
      LLC to pay any Indebtedness when due, giving effect to any applicable grace
      periods.

     

    (d)  (i)
      Finance LLC
      shall generally not pay its debts as such debts become due or shall admit in
      writing its inability to pay its debts generally or shall make a general
      assignment for the benefit of creditors; or (ii) any proceeding shall be
      instituted by or against Finance LLC seeking to adjudicate it bankrupt or
      insolvent, or seeking liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief or composition of it or its debts under any
      law
      relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee or other similar official for it or any substantial part of its property
      and such proceeding is not dismissed within (30) thirty days; or (iii) any
      such
      Person shall take any corporate action to authorize any of the actions set
      forth
      in clauses (ii) above in this subsection (d).

     

    (e)  A
      Change of Control
      shall occur.

     

    (f)  A
      Material Adverse
      Effect shall occur.

     

    (g)  One
      or more
      judgments, decrees, arbitration or binding mediation award(s) and/or
      settlement(s) for the payment of money in excess of $100,000 in the aggregate
      shall be entered against Finance LLC, and either (i) within thirty (30)
      days from the later of (A) the entry of any such judgment or decree or the
      date
      of any such award or settlement (as applicable) and (B) the date any
      payment is required to be made on or with respect to any such judgment, decree,
      award or settlement pursuant to the terms thereof, the same shall not have
      been
      paid, discharged or vacated, or in the case of a judgment, decree or award,
      stayed pending appeal, or shall not have been discharged or vacated within
      thirty (30) days from the entry of a final order of affirmance on appeal or
      (ii) enforcement proceedings shall be commenced by any creditor on any such
      judgment, decree, award or settlement.

     

    (h)  (i)
      The
“Termination Date” under and as defined in the First Tier Sale Agreement shall
      occur, or (ii) Originator shall for any reason cease to transfer, or cease
      to
      have the legal capacity to transfer, or otherwise be incapable of transferring
      Receivables to Finance LLC under the First Tier Sale Agreement.

     

    Section
      5.2.  Remedies.
      Upon the
      occurrence and during the continuation of a Termination Event, Buyer may take
      any of the following actions: (i) declare the Termination Date to have
      occurred, whereupon the Termination Date shall forthwith occur, without demand,
      protest or further notice of any kind, all of which are hereby expressly waived
      by Finance LLC; provided
      that upon the
      occurrence of a Termination Event described in Section 5.1(d),
      or of an actual
      or deemed entry of an order for relief with respect to Finance LLC under the
      Federal Bankruptcy Code, the Termination Date shall automatically occur, without
      demand, protest or any notice of any kind, all of which are hereby expressly
      waived by Finance LLC and (ii) to the fullest extent permitted by
      applicable law, declare that the Default Fee shall accrue with respect to any
      amounts then due and owing by Finance LLC to Buyer (or its assigns). The
      aforementioned rights and remedies shall be in addition to all other rights
      and
      remedies of Buyer and its assigns available under this Agreement and the other
      Transaction Documents, by operation of law, at equity or otherwise, all of
      which
      are hereby expressly preserved, including all rights and remedies provided
      under
      the UCC, all of which rights shall be cumulative.

     

    ARTICLE
      VI

     

    INDEMNIFICATION

     

    Section
      6.1.  Indemnities
      by
      Finance LLC.
      Without limiting
      any other rights that Buyer may have hereunder or under the First Tier Sale
      Agreement or applicable law, Finance LLC hereby agrees to indemnify Buyer and
      its assigns and the officers, directors, agents and employees of Buyer and
      its
      assigns (each an “Indemnified
      Party”)
      from and against
      any and all damages, losses, claims, taxes, liabilities, costs, expenses and
      for
      all other amounts payable, including reasonable attorneys’ fees and
      disbursements (all of the foregoing being collectively referred to as
“Indemnified
      Amounts”)
      awarded against
      or incurred by any of them arising out of or as a result of this Agreement
      or
      the acquisition, either directly or indirectly, by Buyer or its assigns of
      an
      interest in the Receivables, excluding, however: 

     

    (i)  Indemnified
      Amounts
      to the extent that such Indemnified Amounts resulted from gross negligence
      or
      willful misconduct on the part of the Indemnified Party seeking indemnification,
      it being the intention of Finance LLC to indemnify such Indemnified Party
      against the consequences of its own negligence; 

     

    (ii)  Indemnified
      Amounts
      to the extent the same includes losses in respect of Receivables that are solely
      due to the credit risk of the Obligor and for which reimbursement would
      constitute recourse to Finance LLC for uncollectible Receivables;

     

    (iii)  taxes
      imposed by
      the jurisdiction in which such Indemnified Party’s principal executive office is
      located, on or measured by the overall net income of such Indemnified Party
      to
      the extent that the computation of such taxes is consistent with the Intended
      Characterization; provided,
      however,
      that nothing
      contained in this sentence shall limit the liability of Finance LLC or limit
      the
      recourse of Buyer or its assigns to Finance LLC for amounts otherwise
      specifically provided to be paid by Finance LLC under the terms of this
      Agreement; or

     

    (iv)  Indemnified
      Amounts
      relating to and affecting only Additional Amounts.

     

    Without
      limiting
      the generality of the foregoing indemnification (and, in the case of the
      following clauses (D) through (M), in each case without limiting Finance LLC’s
      obligations under the following clauses (A), (B) or (C)), Finance LLC shall
      indemnify the Indemnified Parties for Indemnified Amounts relating to or
      resulting from: 

     

    (A)  any
      representation
      or warranty made by or on behalf of Finance LLC (or any officers of any such
      Person) in this Agreement, any other Transaction Document or any other
      information or report delivered by such Person pursuant hereto or thereto,
      which
      shall have been false or incorrect when made or deemed made;

     

    (B)  the
      failure by
      Finance LLC to comply with any applicable law, rule or regulation with respect
      to any Receivable or Contract related thereto, or the nonconformity of any
      Receivable or Contract included therein with any such applicable law, rule
      or
      regulation or any failure of Finance LLC to keep or perform any of its
      obligations, express or implied, with respect to any Contract;

     

    (C)  any
      failure of
      Finance LLC to perform its duties, covenants or other obligations in accordance
      with the provisions of this Agreement or any other Transaction
      Document;

     

    (D)  any
      products
      liability, environmental, personal injury or damage suit, or other similar
      claim
      arising out of or in connection with merchandise, insurance or services that
      are
      the subject of any Contract or any Receivable;

     

    (E)  any
      dispute, claim,
      offset or defense (other than discharge in bankruptcy of the Obligor) of the
      Obligor to the payment of any Receivable other than any portion thereof
      constituting an Additional Amount (including a defense based on such Receivable
      or the related Contract not being a legal, valid and binding obligation of
      such
      Obligor enforceable against it in accordance with its terms or based on such
      Obligor being immune from claims on the grounds on sovereign immunity or
      otherwise immune or not subject to legal action, suit or proceeding), or any
      other claim resulting from the sale of the merchandise or services related
      to
      such Receivable or the furnishing or failure to furnish such merchandise or
      services;

     

    (F)  the
      commingling by
      or on behalf of Finance LLC or any of its Affiliates of Collections of
      Receivables at any time with other funds;

     

    (G)  any
      investigation,
      litigation or proceeding related to or arising from this Agreement or any other
      Transaction Document, the transactions contemplated hereby, the use of the
      proceeds of a Purchase, the ownership of the Receivables or any other
      investigation, litigation or proceeding relating to Finance LLC in which any
      Indemnified Party becomes involved as a result of any of the transactions
      contemplated hereby;

     

    (H)  any
      Termination
      Event described in Section 5.1(d)(iii);

     

    (I)  any
      failure of
      Finance LLC to acquire and maintain legal and equitable title to, and ownership
      of any Receivable and the Related Security and Collections with respect thereto
      from Originator, free and clear of any Adverse Claim (other than as created
      hereunder); or any failure of Finance LLC to give reasonably equivalent value
      to
      Originator under the First Tier Sale Agreement in consideration of the transfer
      by Originator of any Receivable, or any attempt by Originator or Finance LLC
      to
      void such transfer under statutory provisions or common law or equitable
      action;

     

    (J)  any
      failure to vest
      in Buyer, or to transfer to Buyer, legal and equitable title to, and ownership
      of, the Receivables, the Related Security and the Collections, free and clear
      of
      any Adverse Claim (except as created by the Transaction Documents);

     

    (K)  the
      failure to have
      filed, or any delay in filing, financing statements or other similar instruments
      or documents under the UCC of any applicable jurisdiction or other applicable
      laws with respect to any Receivable, the Related Security and Collections with
      respect thereto, and the proceeds of any thereof, whether at the time of a
      Purchase or at any subsequent time;

     

    (L)  any
      avoidance or
      attempt by Originator or Finance LLC to void any Purchase hereunder under
      statutory provisions or common law or equitable action, and

     

    (M)  the
      failure by
      Finance LLC or any Affiliate to pay when due any taxes, including sales, excise
      or personal property taxes.

     

    Section
      6.2.  Other
      Costs and
      Expenses.
      Finance LLC shall
      pay to Buyer on demand all reasonable costs and out-of-pocket expenses in
      connection with the preparation, execution and delivery of this Agreement,
      the
      transactions contemplated hereby and the other documents to be delivered
      hereunder. Finance LLC shall pay to Buyer and its assigns on demand any and
      all
      costs and expenses of Buyer, if any, including reasonable counsel fees and
      expenses in connection with the enforcement of this Agreement and the other
      documents delivered hereunder and in connection with any restructuring or
      workout of this Agreement or such documents (including any amendments hereto
      or
      thereto).

     

    ARTICLE
      VII

     

    MISCELLANEOUS

     

    Section
      7.1.  Waivers
      and
      Amendments.

     

    (a)  No
      failure or delay
      on the part of Buyer (or its assigns) in exercising any power, right or remedy
      under this Agreement shall operate as a waiver thereof, nor shall any single
      or
      partial exercise of any such power, right or remedy preclude any other further
      exercise thereof or the exercise of any other power, right or remedy. The rights
      and remedies herein provided shall be cumulative and nonexclusive of any rights
      or remedies provided by law. Any waiver of this Agreement shall be effective
      only in the specific instance and for the specific purpose for which
      given.

     

    (b)  No
      provision of
      this Agreement may be amended, supplemented, modified or waived except in
      writing signed by Finance LLC and Buyer and, to the extent required under the
      Purchase Agreement, the Program Agent and the Required Committed
      Investors.

     

    Section
      7.2.  Notices.
      Except as
      provided below, all communications and notices provided for hereunder shall
      be
      in writing (including bank wire, telecopy or electronic facsimile transmission
      or similar writing) and shall be given to the other parties hereto at their
      respective addresses or telecopy numbers set forth on the signature page hereto
      or at such other address or telecopy number as such Person may hereafter specify
      for the purpose of notice to each of the other parties hereto. Each such notice
      or other communication shall be effective (i) if given by telecopy, upon
      the receipt thereof, (ii) if given by mail, three Business Days after the
      time such communication is deposited in the mail with first class postage
      prepaid or (iii) if given by any other means, when received at the address
      specified in this Section 7.2.

     

    Section
      7.3.  Protection
      of
      Ownership Interests of Buyer.

     

    (a)  Finance
      LLC agrees
      that from time to time, at its expense, it will promptly execute and deliver
      all
      instruments and documents, and take all actions, that may be necessary or
      desirable, or that Buyer (or its assigns) may reasonably request, to perfect,
      protect or more fully evidence the Investor Interests, or to enable Buyer (or
      its assigns) to exercise and enforce their rights and remedies hereunder. At
      any
      time, Buyer (or its assigns) may, at Finance LLC’s sole cost and expense, direct
      Finance LLC to notify the Obligors of Receivables of the ownership interests
      of
      Buyer under this Agreement and may also direct that payments of all amounts
      due
      or that become due under any or all Receivables be made directly to Buyer or
      its
      designee.

     

    (b)  If
      Finance LLC
      fails to perform any of its obligations hereunder and such failure shall
      continue for five Business Days after notice from Buyer (or its assigns) of
      such
      failure, Buyer (or its assigns) may (but shall not be required to) perform,
      or
      cause performance of, such obligation, and Buyer’s (or such assigns’) costs and
      expenses reasonably incurred in connection therewith shall be payable by Finance
      LLC as provided in Section 6.2.
      Finance LLC
      irrevocably authorizes Buyer (and its assigns) at any time and from time to
      time
      in the sole discretion of Buyer (or its assigns), and appoints Buyer (and its
      assigns) as its attorney(es)-in-fact, to act on its behalf (i) to file financing
      statements necessary or desirable in Buyer’s (or its assigns’) sole discretion
      to perfect and to maintain the perfection and priority of the interest of Buyer
      in the Receivables and (ii) to file a carbon, photographic or other reproduction
      of this Agreement or any financing statement with respect to the Receivables
      as
      a financing statement in such offices as Buyer (or its assigns) in their sole
      discretion deem necessary or desirable to perfect and to maintain the perfection
      and priority of Buyer’s interests in the Receivables. This appointment is
      coupled with an interest and is irrevocable.

     

    Section
      7.4.  Confidentiality.

     

    (a)  Finance
      LLC agrees
      to be bound by the provisions of Section 7.4(a)
      of the First Tier
      Sale Agreement with respect to any information delivered or made available
      by
      Buyer (or its assigns) to it, as though references therein to “Originator” and
“Buyer” instead referred to Finance LLC and to Buyer hereunder, respectively.

     

    (b)  Buyer
      agrees to be
      bound by the provisions of Section 7.4(b)
      of the First Tier
      Sale Agreement with respect to any information delivered or made available
      by
      Finance LLC to it, as though references therein to “Buyer” and “Originator”
instead referred to Buyer hereunder and to Finance LLC, respectively.

     

    (c)  Notwithstanding
      the
      foregoing, Finance LLC and Buyer (and its assigns) may disclose to any and
      all
      other Persons, without limitation of any kind, the tax treatment and tax
      structure of the transactions contemplated by this Agreement and the Transaction
      Documents and all materials of any kind (including opinions or other tax
      analyses) that are provided to them relating to such tax treatment and tax
      structure.

     

    Section
      7.5.  Bankruptcy
      Petition. 

     

    (a)  Finance
      LLC and
      Buyer each hereby covenants and agrees that, prior to the date that is one
      year
      and one day after the payment in full of all outstanding senior Indebtedness
      of
      each Conduit Investor, it will not institute against, or join any other Person
      in instituting against, such Conduit Investor any bankruptcy, reorganization,
      arrangement, insolvency or liquidation proceedings or other similar proceeding
      under the laws of the United States or any state of the United States.

     

    (b)  Finance
      LLC hereby
      covenants and agrees that, prior to the date that is one year and one day after
      the payment in full of all outstanding Capital, Yield and all other amounts
      due
      to the Program Agent, any Managing Agent or any Investor under the Purchase
      Agreement, it will not institute against, or join any other Person in
      instituting against, Buyer any bankruptcy, reorganization, arrangement,
      insolvency or liquidation proceedings or other similar proceeding under the
      laws
      of the United States or any state of the United States.

     

    (c)  Buyer
      hereby
      covenants and agrees that, prior to the date that is one year and one day after
      the payment in full of all outstanding Capital, Yield and all other amounts
      due
      to the Program Agent, any Managing Agent or any Investor under the Purchase
      Agreement, it will not institute against, or join any other Person in
      instituting against, Finance LLC any bankruptcy, reorganization, arrangement,
      insolvency or liquidation proceedings or other similar proceeding under the
      laws
      of the United States or any state of the United States.

     

    Section
      7.6.  CHOICE
      OF
      LAW.
      THE SALE,
      TRANSFER AND CONVEYANCE OF RECEIVABLES, TOGETHER WITH RELATED SECURITY AND
      COLLECTIONS, UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
      ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS (WITHOUT REGARD TO CONFLICTS
      OF
      LAW PRINCIPLES), AND OTHERWISE THIS AGREEMENT SHALL BE GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
      SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT
      OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES).

     

    Section
      7.7.  CONSENT
      TO
      JURISDICTION.
      EACH PARTY TO
      THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS (A) FOR ITSELF AND ITS PROPERTY
      IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE OTHER
      TRANSACTION DOCUMENTS TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT
      OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NONEXCLUSIVE GENERAL JURISDICTION
      OF
      THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF AMERICA
      FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;
(B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH
      COURTS AND WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE
      OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR
      PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR
      CLAIM
      THE SAME; (C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR
      PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED
      MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH
      PERSON AT THE ADDRESS SPECIFIED PURSUANT TO SECTION 7.2
      OR AT SUCH OTHER
      ADDRESS OF WHICH THE PARTIES HERETO SHALL HAVE BEEN NOTIFIED PURSUANT THERETO;
(D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF
      PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE
      IN
      ANY OTHER JURISDICTION; AND (E) WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY
      APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LEGAL ACTION
      OR
      PROCEEDING RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS ANY
      SPECIAL, INDIRECT, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

     

    Section
      7.8.  WAIVER
      OF JURY
      TRIAL.
      EACH PARTY HERETO
      HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
      OR
      INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
      ANY
      WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT
      EXECUTED BY FINANCE LLC PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP
      ESTABLISHED HEREUNDER OR THEREUNDER.

     

    Section
      7.9.  Integration;
      Binding Effect; Survival of Terms. 

     

    (a)  This
      Agreement and
      any other document executed in connection herewith represent the final agreement
      among the parties and may not be contradicted by evidence of prior,
      contemporaneous, or subsequent oral agreements of the parties. There are no
      unwritten oral agreements among the parties. 

     

    (b)  This
      Agreement
      shall be binding upon and inure to the benefit of the parties hereto and their
      respective successors and permitted assigns (including any trustee in
      bankruptcy). This Agreement shall create and constitute the continuing
      obligations of the parties hereto in accordance with its terms and shall remain
      in full force and effect until terminated in accordance with its terms;
provided,
      however,
      that the rights
      and remedies with respect to (i) any breach of any representation and warranty
      made by Finance LLC pursuant to Article II,
      (ii) the
      indemnification and payment provisions of Article VI,
      and Section 7.5
      shall be
      continuing and shall survive any termination of this Agreement. 

     

    Section
      7.10.  Counterparts;
      Severability; Section References.
      This Agreement
      may be executed in any number of counterparts and by different parties hereto
      in
      separate counterparts, each of which when so executed shall be deemed to be
      an
      original and all of which when taken together shall constitute one and the
      same
      Agreement. Any provisions of this Agreement which are prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction. Unless otherwise expressly indicated, all references herein
      to “Article,” “Section,” “Schedule” or “Exhibit” shall mean articles and
      sections of, and schedules and exhibits to, this Agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    

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

     

    TGP
      FINANCE
      COMPANY, L.L.C.

     

    By:
/s/
      John J.
      Hopper                                 

    Name: 
John
      J.
      Hopper

    Title:    
      Vice President and Treasurer

     

    Address:     TGP
      Finance Company,
      L.L.C.

    1001
      Louisiana
      Street

    Houston,
      Texas
      77002

    Attention:
      Treasurer

    

     

    TGP
      FUNDING
      COMPANY, L.L.C.

     

    By
      TGP Finance Company, L.L.C., its Manager

     

    
      By:
/s/
        John J.
        Hopper                                 

      Name: 
John
        J.
        Hopper

      Title:    
        Vice President and Treasurer

    

     

    Address:     TGP
      Funding Company,
      L.L.C.

    1001
      Louisiana
      Street

    Houston,
      Texas
      77002

    Attention:
      Treasurer

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    EXHIBIT
      I
      TO

    SECOND
      TIER
      RECEIVABLES SALE AGREEMENT

    

    

    DEFINITIONS

    

    

    As
      used in this Agreement and the Exhibits, Schedules and Annexes hereto,
      capitalized terms have the meanings set forth in this Exhibit I
      (such meanings to
      be equally applicable to the singular and plural forms thereof). If a
      capitalized term is used in this Agreement, or in any Exhibit, Schedule or
      Annex
      hereto, and not otherwise defined therein or in this Exhibit I,
      such term shall
      have the meaning assigned thereto in Exhibit I
      to the Purchase
      Agreement or to the First Tier Sale Agreement.

     

    “Agreement”
means
      this Second
      Tier Receivables Sale Agreement, dated as of August 31, 2006, between
      Finance LLC and Buyer, as the same may be amended, restated or otherwise
      modified. 

     

    “Buyer”
has
      the meaning
      set forth in the preamble.

     

    “Change
      of
      Control”
means
      Originator’s failure to own, directly, 100% of the issued and outstanding member
      interests of Finance LLC or Finance LLC’s failure to own, directly, 100% of the
      issued and outstanding member interests of Buyer.

     

    “Default
      Fee”
means
      a per annum
      rate of interest equal to the sum of (i) the Prime Rate, plus (ii) 2.0% per
      annum.

     

    “Discount
      Factor”
means
      a
      percentage (initially 0.59%) calculated to provide Buyer with a reasonable
      return on its investment in the Receivables after taking account of (i) the
      time
      value of money based upon the anticipated dates of collection of the Receivables
      and the cost to Buyer of financing its investment in the Receivables during
      such
      period and (ii) the risk of nonpayment by the Obligors. Finance LLC and Buyer
      may agree from time to time to change the Discount Factor based on changes
      in
      one or more of the items affecting the calculation thereof, provided
      that any change to
      the Discount Factor shall take effect as of the commencement of a Monthly
      Period, shall apply only prospectively and shall not affect the Purchase Price
      payment in respect of a Purchase which occurred during any Monthly Period ending
      prior to the Monthly Period during which Finance LLC and Buyer agree to make
      such change.

     

    “El
      Paso
      Entity”
has
      the meaning
      set forth in Section 4.1(j).

     

    “First
      Tier Sale
      Agreement”
has
      the meaning
      set forth in the Preliminary Statements.

     

    “Independent
      Manager”
means
      a manager
      of Finance LLC who satisfies the requirements for an “Independent Manager” as
      set forth in Finance LLC’s limited liability company agreement as in effect on
      the date of this Agreement.

     

    “Initial
      Purchase Date”
has
      the meaning
      set forth in Section 1.1(a).

     

    “Investor
      Interests”
has
      the meaning
      set forth in the Preliminary Statements.

     

    “Junior
      Interest”
has
      the meaning
      set forth in the Preliminary Statements.

     

    “Material
      Adverse Effect”
means
      a material
      adverse effect on (i) the financial condition of Finance LLC or Buyer, (ii)
      the
      ability of Finance LLC or Buyer to perform its obligations under this Agreement
      or any other Transaction Document, (iii) the legality, validity or
      enforceability of this Agreement or any other Transaction Document, (iv) the
      interest or Buyer or its assigns in the Receivables generally or in any
      significant portion of the Receivables, the Related Security or the Collections
      with respect thereto, or (v) the collectibility of the Receivables generally
      or
      of any material portion of the Receivables.

     

    “Original
      Balance”
means,
      with
      respect to any Receivable, the Outstanding Balance of such Receivable on the
      date it was purchased by Buyer.

     

    “Originator”
has
      the meaning
      set forth in the Preliminary Statements. 

     

    “Finance
      LLC”
has
      the meaning
      set forth in the preamble.

     

    “Potential
      Termination Event”
means
      an event
      which, with the passage of time or the giving of notice, or both, would
      constitute a Termination Event.

     

    “Program
      Agent”
has
      the meaning
      set forth in the Preliminary Statements. 

     

    “Purchase”
means
      a purchase
      under this Agreement by Buyer from Finance LLC of the Receivables, the Related
      Security and the Collections related thereto, together with all related rights
      in connection therewith as described in Section 1.1.

     

    “Purchase
      Agreement”
has
      the meaning
      set forth in the Preliminary Statements.

     

    “Purchase
      Price”
means,
      with
      respect to any Purchase from Finance LLC on any date, the aggregate price to
      be
      paid to Finance LLC for such Purchase in accordance with Section 1.2
      for the
      Receivables, Related Security and Collections being sold to Buyer on such date,
      which price shall equal (i) the product of (x) the Original Balance of such
      Receivables, multiplied by (y) one minus the Discount Factor then in effect,
      minus (ii) any Purchase Price Credits, Repurchase Prices and Special Adjustment
      Credits to be credited against the Purchase Price otherwise payable in
      accordance with Section 1.3.

     

    “Purchase
      Price
      Credit”
has
      the meaning
      set forth in Section 1.3(a).

     

    “Receivable”
means
      (i) the
      indebtedness and other obligations owed to Finance LLC (prior to giving effect
      to any transfer or conveyance under this Agreement) or Buyer (after giving
      effect to the transfers and conveyances under this Agreement), including any
      indebtedness, obligation or interest constituting an account or payment
      intangible, to the extent such indebtedness and other obligations arise in
      connection with reservation charges for the daily transportation or storage
      of
      natural gas by Originator and without regard to whether the applicable Obligor
      shall have been invoiced therefor and (ii) the Additional Amounts, and includes
      the obligation to pay any Finance Charges with respect thereto; provided
      that
      the term
“Receivable” shall not include any such indebtedness or obligations that, (A)
      prior to such indebtedness or obligations being transferred and conveyed to
      Finance LLC under the First Tier Sale Agreement, were owed to Originator by
      any
      of its Affiliates from time to time or (B) prior to such indebtedness or
      obligations being transferred and conveyed to Buyer hereunder, Originator shall
      have notified Finance LLC and the Program Agent in writing are not Eligible
      Receivables, or (C) is an Excluded Receivable (as defined in the First Tier
      Sale
      Agreement). Indebtedness and other rights and obligations arising from any
      one
      transaction, including indebtedness and other rights and obligations represented
      by an individual invoice, shall constitute a Receivable separate from a
      Receivable consisting of the indebtedness and other rights and obligations
      arising from any other transaction; provided
      that any
      indebtedness, rights or obligations referred to in the immediately preceding
      sentence shall be a Receivable regardless of whether the account debtor or
      Finance LLC treats such indebtedness, rights or obligations as a separate
      payment obligation.

     

    “Records”
means,
      with
      respect to any Receivable, 

     

    (i) all
      Contracts; and

     

    (ii) (in
      each case
      solely to the extent of the rights therein (if any) of Originator, Seller or
      Finance LLC, as applicable) all other documents, books, records and other
      information (including computer programs, tapes, disks, punch cards, data
      processing software and related property and rights) relating to such
      Receivable, any Related Security therefor and the related Obligor.

     

    “Related
      Security”
means,
      with
      respect to any Receivable:

     

    (i)  all
      security
      interests or liens and property subject thereto from time to time, if any,
      purporting to secure payment of such Receivable, whether pursuant to the
      Contract related to such Receivable or otherwise, together with all financing
      statements and security agreements describing any collateral securing such
      Receivable,

     

    (ii)  all
      guaranties,
      letters of credit, insurance and other agreements or arrangements of whatever
      character from time to time supporting or securing payment of such Receivable
      whether pursuant to the Contract related to such Receivable or
      otherwise,

     

    (iii)  all
      Records related
      to such Receivable,

     

    (iv)  all
      of Finance
      LLC’s right, title and interest in, to and under the First Tier Sale Agreement,
      and

     

    (v)  all
      proceeds of any
      of the foregoing.

     

    “Repurchase
      Price”
has
      the meaning
      set forth in Section 1.3(a).

     

    “Special
      Adjustment Credit”
has
      the meaning
      set forth in Section 1.3(b).

     

    “Termination
      Date”
means
      the
      earliest to occur of (i) the Amortization Date under the Purchase
      Agreement, (ii) the “Termination Date” under, and as defined in, the First Tier
      Sale Agreement, (iii) the Business Day immediately prior to the occurrence
      of a Termination Event set forth in Section 5.1(d),
      and (iv) the
      Business Day specified in a written notice from Buyer to Finance LLC following
      the occurrence and during the continuance of any other Termination
      Event.

     

    “Termination
      Event”
has
      the meaning
      set forth in Section 5.1.

     

    “Transferee”
has
      the meaning
      set forth in Section 7.4.

     

    Additionally,
      unless otherwise specified herein:

     

    (a) All
      accounting
      terms not specifically defined herein shall be construed in accordance with
      GAAP. All terms used in Article 9 of the UCC in the State of New York, and
      not
      specifically defined herein, are used herein as defined in such Article
      9.

     

    (b) The
      definitions of
      terms herein shall apply equally to the singular and plural forms of the terms
      defined. Whenever the context may require, any pronoun shall include the
      corresponding masculine, feminine and neuter forms. The words “include,”
“includes”
and
“including”
shall
      be deemed
      to be followed by the phrase “without limitation.” The word “will”
shall
      be
      construed to have the same meaning and effect as the word “shall.”
Unless
      the
      context requires otherwise, (i) any definition of or reference to any agreement,
      instrument or other document shall be construed as referring to such agreement,
      instrument or other document as from time to time amended, restated,
      supplemented or otherwise modified or replaced (subject to any restrictions
      on
      such amendments, supplements or modifications set forth herein or in any other
      Transaction Document), (ii) any reference herein to any Person shall be
      construed to include such Person’s successors and assigns, (iii) the words
“herein,”
“hereof”
and
“hereunder,”
and
      words of
      similar import when used in this Agreement shall be construed to refer to this
      Agreement in its entirety and not to any particular provision thereof, (iv)
      all
      references in this Agreement to Articles, Sections, Exhibits and Schedules
      shall
      be construed to refer to Articles and Sections of, and Exhibits and Schedules
      to, this Agreement in which such references appear, (v) any reference to any
      law
      shall include all statutory and regulatory provisions consolidating, amending,
      replacing or interpreting such law and any reference to any law or regulation
      shall, unless otherwise specified, refer to such law or regulation as amended,
      modified or supplemented from time to time, and (vi) the words “asset”
and
“property”
shall
      be
      construed to have the same meaning and effect and to refer to any and all
      tangible and intangible assets and properties, including cash, securities,
      accounts and contract rights.Exhibit 10.C

    EXHIBIT
      10.C

     

     

    

      [EXECUTION
        COPY]

      

      

      
        

        

      

      

       

       

      
 

      

      

      

      RECEIVABLES
        PURCHASE AGREEMENT

      

      

      dated
        as of
        August 31, 2006

      

      

      among

      

      TGP
        FUNDING
        COMPANY, L.L.C.,

      as
        Seller,

      

      TENNESSEE
        GAS
        PIPELINE COMPANY,

      as
        Servicer,

      

      STARBIRD
        FUNDING
        CORPORATION

      as
        the initial
        Conduit Investor and Committed Investor,

      

      THE
        OTHER INVESTORS
        FROM TIME TO TIME PARTIES HERETO,

      

      BNP
        PARIBAS, NEW
        YORK BRANCH, 

      as
        the initial
        Managing Agent,

      

      THE
        OTHER MANAGING
        AGENTS FROM TIME TO TIME PARTIES HERETO,

      

      and

      

      BNP
        PARIBAS, NEW
        YORK BRANCH,

      as
        Program
        Agent

      

       

       

       

      
 

      

      

      

      
        

        

      

      

       

      

         

        

        Table
          of
          Contents

        

        
          	 	
                  Page

                
	
                  ARTICLE
                    I     PURCHASE
                    ARRANGEMENTS

                	
                   

                
	
                  Section
                    1.1.

                	
                  Purchase
                    Facility

                	
                   

                
	
                  Section
                    1.2.

                	
                  Increases

                	
                   

                
	
                  Section
                    1.3.

                	
                  Payment
                    Requirements

                	
                   

                
	 	
                   

                
	
                  ARTICLE
                    II    PAYMENTS
                    AND
                    COLLECTIONS

                	
                   

                
	
                  Section
                    2.1.

                	
                  Payments

                	
                   

                
	
                  Section
                    2.2.

                	
                  Reinvestments
                    and Purchase Price Adjustments.

                	
                   

                
	
                  Section
                    2.3.

                	
                  Collections

                	
                   

                
	
                  Section
                    2.4.

                	
                  Withdrawals
                    from Collection Account prior to Amortization Date

                	
                   

                
	
                  Section
                    2.5.

                	
                  Application
                    of Collections Following Amortization

                	
                   

                
	
                  Section
                    2.6.

                	
                  Collection
                    Account

                	
                   

                
	
                  Section
                    2.7.

                	
                  Payment
                    Rescission

                	
                   

                
	
                  Section
                    2.8.

                	
                  Deemed
                    Collections and other Adjustment Payments

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    III    CONDUIT
                    FUNDING

                	
                   

                
	
                  Section
                    3.1.

                	
                  Yield

                	
                   

                
	
                  Section
                    3.2.

                	
                  Payments

                	
                   

                
	
                  Section
                    3.3.

                	
                  Calculation
                    of Yield

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    IV    COMMITTED
                    INVESTOR FUNDING

                	
                   

                
	
                  Section
                    4.1.

                	
                  Committed
                    Investor Funding Provisions

                	
                   

                
	
                  Section
                    4.2.

                	
                  Yield
                    Payments

                	
                   

                
	
                  Section
                    4.3.

                	
                  Suspension
                    of
                    the LIBO Rate

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    V    REPRESENTATIONS
                    AND WARRANTIES

                	
                   

                
	
                  Section
                    5.1.

                	
                  Representations
                    and Warranties of the Seller Parties

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    VI    CONDITIONS
                    OF
                    PURCHASES

                	
                   

                
	
                  Section
                    6.1.

                	
                  Conditions
                    Precedent to Initial Incremental Purchase and Restatement

                	
                   

                
	
                  Section
                    6.2.

                	
                  Conditions
                    Precedent to All Purchases

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    VII    COVENANTS

                	
                   

                
	
                  Section
                    7.1.

                	
                  Affirmative
                    Covenants of the Seller Parties

                	
                   

                
	
                  Section
                    7.2.

                	
                  Negative
                    Covenants of Seller Parties

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    VIII    ADMINISTRATION
                    AND COLLECTION

                	
                   

                
	
                  Section
                    8.1.

                	
                  Designation
                    of Servicer

                	
                   

                
	
                  Section
                    8.2.

                	
                  Duties
                    of
                    Servicer

                	
                   

                
	
                  Section
                    8.3.

                	
                  Collection
                    Notices

                	
                   

                
	
                  Section
                    8.4.

                	
                  Responsibilities
                    of Seller

                	
                   

                
	
                  Section
                    8.5.

                	
                  Reports

                	
                   

                
	
                  Section
                    8.6.

                	
                  Computation
                    Agent

                	
                   

                
	
                  Section
                    8.7.

                	
                  Servicer
                    Fees

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    IX    AMORTIZATION
                    EVENTS

                	
                   

                
	
                  Section
                    9.1.

                	
                  Amortization
                    Events

                	
                   

                
	
                  Section
                    9.2.

                	
                  Remedies

                	
                   

                
	
                  Section
                    9.3.

                	
                  Default
                    Yield

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    X    INDEMNIFICATION

                	
                   

                
	
                  Section
                    10.1.

                	
                  Indemnities
                    by the Seller Parties

                	
                   

                
	
                  Section
                    10.2.

                	
                  Increased
                    Cost and Reduced Return

                	
                   

                
	
                  Section
                    10.3.

                	
                  Mitigation
                    of
                    Costs

                	
                   

                
	
                  Section
                    10.4.

                	
                  Other
                    Costs
                    and Expenses

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    XI    THE
                    AGENTS

                	
                   

                
	
                  Section
                    11.1.

                	
                  Authorization
                    and Action

                	
                   

                
	
                  Section
                    11.2.

                	
                  Delegation
                    of
                    Duties

                	
                   

                
	
                  Section
                    11.3.

                	
                  Exculpatory
                    Provisions

                	
                   

                
	
                  Section
                    11.4.

                	
                  Reliance
                    by
                    Agents

                	
                   

                
	
                  Section
                    11.5.

                	
                  Non-Reliance
                    on Agents and Other Investors

                	
                   

                
	
                  Section
                    11.6.

                	
                  Reimbursement
                    and Indemnification

                	
                   

                
	
                  Section
                    11.7.

                	
                  Agents
                    in
                    their Individual Capacities

                	
                   

                
	
                  Section
                    11.8.

                	
                  Successor
                    Agent

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    XII    ASSIGNMENTS;
                    PARTICIPATIONS

                	
                   

                
	
                  Section
                    12.1.

                	
                  Assignments

                	
                   

                
	
                  Section
                    12.2.

                	
                  Participations

                	
                   

                
	
                  Section
                    12.3.

                	
                  Joinder
                    by
                    Conduit Investor

                	 
	
                  Section
                    12.4.

                	
                  Extension
                    of
                    Commitment Termination Date

                	
                   

                
	 	 	
                   

                
	
                  ARTICLE
                    XIII    MISCELLANEOUS

                	
                   

                
	
                  Section
                    13.1.

                	
                  Waivers
                    and
                    Amendments

                	
                   

                
	
                  Section
                    13.2.

                	
                  Notices

                	
                   

                
	
                  Section
                    13.3.

                	
                  Ratable
                    Payments

                	
                   

                
	
                  Section
                    13.4.

                	
                  Protection
                    of
                    Ownership Interests of the Investors

                	
                   

                
	
                  Section
                    13.5.

                	
                  Confidentiality

                	
                   

                
	
                  Section
                    13.6.

                	
                  Bankruptcy
                    Petition

                	
                   

                
	
                  Section
                    13.7.

                	
                  Limitation
                    of
                    Liability; Limitation of Payment; No Recourse

                	
                   

                
	
                  Section
                    13.8.

                	
                  Seller’s
                    Payment Obligations

                	 
	
                  Section
                    13.9.

                	
                  CHOICE
                    OF
                    LAW

                	
                   

                
	
                  Section
                    13.10.

                	
                  CONSENT
                    TO
                    JURISDICTION

                	
                   

                
	
                  Section
                    13.11.

                	
                  WAIVER
                    OF
                    JURY TRIAL

                	
                   

                
	
                  Section
                    13.12.

                	
                  Integration;
                    Binding Effect; Survival of Terms

                	
                   

                
	
                  Section
                    13.13.

                	
                  Counterparts;
                    Severability; Section References

                	
                   

                
	
                  Section
                    13.14.

                	
                  Agent
                    Roles

                	
                   

                
	
                  Section
                    13.15.

                	
                  Characterization

                	
                   

                

        

         

         

        
          

          
            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

                
                

              

            

          

          

 

          
            

            LIST
              OF EXHIBITS
              AND SCHEDULES

            

            
              	
                      Exhibit
                        I

                    	
                      Definitions

                    
	
                      Exhibit
                        II

                    	
                      Form
                        of
                        Purchase Notice

                    
	
                      Exhibit III

                    	
                      Principal
                        Places of Business of the Seller Parties; etc.

                    
	
                      Exhibit
                              IV

                    	
                      Names
                        of
                        Collection Banks; Blocked Accounts

                    
	
                      Exhibit
                        V

                    	
                      Form
                        of
                        Compliance Certificate

                    
	
                      Exhibit
                        VI

                    	
                      Form
                        of
                        Blocked Account Agreement

                    
	
                      Exhibit
                        VII

                    	
                      Form
                        of
                        Assignment Agreement

                    
	
                      Exhibit
                        VIII

                    	
                      Joinder
                        Agreement

                    
	
                      Exhibit
                        IX

                    	
                      Credit
                        and
                        Collection Policy

                    
	
                      Exhibit
                        X

                    	
                      Form
                        of
                        Monthly Report

                    
	
                      Exhibit
                        XI

                    	
                      Form
                        of
                        Mid-Month Report

                    
	
                      Exhibit
                        XII

                    	
                      Form
                        of Daily
                        Report

                    
	 	 
	
                      Schedule A

                    	
                      Commitments

                    
	
                      Schedule B

                    	
                      Closing
                        Documents

                    
	
                      Schedule C

                    	
                      Disclosure
                        Information Delivered

                    

            

          

           

           

           

           

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

       

      

      TGP
        FUNDING
        COMPANY, L.L.C.

       

      RECEIVABLES
        PURCHASE AGREEMENT

       

      This
        Receivables
        Purchase Agreement dated as of August 31, 2006 is
        among TGP
        FUNDING COMPANY, L.L.C., a Delaware limited liability company (“Seller”),
        TENNESSEE GAS
        PIPELINE COMPANY, a Delaware corporation, as initial Servicer (the initial
        Servicer together with Seller, the “Seller
        Parties”
and
        each a
“Seller
        Party”),
        STARBIRD
        FUNDING CORPORATION (“Starbird”)
        and the other
        funding entities from time to time party hereto as Investors, BNP PARIBAS,
        NEW
        YORK BRANCH (“Paribas”),
        and the other
        financial institutions from time to time party hereto as Managing Agents,
        and
        BNP PARIBAS, NEW YORK BRANCH, as program agent for the Investors hereunder
        (together with its successors and assigns hereunder, the “Program
        Agent”).
        Unless defined
        elsewhere herein, capitalized terms used in this Agreement shall have the
        meanings assigned to such terms in Exhibit I.

       

      PRELIMINARY
        STATEMENTS

      

      Seller
        desires to
        transfer and assign Investor Interests to the Investors from time to
        time.

       

      Upon
        and subject to
        the terms and conditions of this Agreement, (i) Conduit Investors may, in
        their
        absolute and sole discretion, purchase Investor Interests from Seller from
        time
        to time, and (ii) in the event that a Conduit Investor declines to make any
        purchase, the Committed Investors which are part of its Investor Group shall
        purchase Investor Interests from Seller from time to time.

       

      Paribas
        has been
        requested and is willing to act as Program Agent on behalf of the Investors
        in
        accordance with the terms hereof.

       

      ARTICLE
        I

       

      PURCHASE
        ARRANGEMENTS

       

      Section
        1.1.  Purchase
        Facility.
        Upon the terms
        and subject to the terms and conditions hereof, Seller hereby sells and assigns
        Investor Interests to the Program Agent, for the benefit of the Investors.
        In
        accordance with the terms and conditions set forth herein, Investors may
        or
        shall, as provided herein, instruct the related Managing Agent to purchase
        on
        its behalf through the Program Agent, Investor Interests from Seller from
        time
        to time in an aggregate amount not to exceed the Program Limit, and for each
        Investor Group in an aggregate amount not to exceed the Group Purchase Limit
        for
        such Investor Group, during the period from the date hereof to but not including
        the Amortization Date.

       

      Section
        1.2.  Increases.

       

      (a)  Servicer
        shall
        provide the Program Agent and each Managing Agent with at least one Business
        Day’s prior notice in the form set forth as Exhibit II
        hereto of each
        Incremental Purchase (collectively, a “Purchase
        Notice”).
        Each Purchase
        Notice shall be subject to Section 6.2
        hereof and, except
        as set forth below, shall be irrevocable and shall specify the requested
        Purchase Price (which shall not be less than $1,000,000 for each Investor
        Group)
        and date of purchase, which shall be a Monthly Settlement Date (or, in the
        case
        of the initial Incremental Purchase, the date of this Agreement). Following
        receipt of a Purchase Notice, each Managing Agent shall notify each Investor
        in
        its Investor Group of its receipt of same.

       

      (b)  Each
        Incremental
        Purchase to be made hereunder shall be made ratably among the Investor Groups
        in
        accordance with their Group Purchase Limits. For each Investor Group, the
        applicable Managing Agent shall determine whether its Conduit Investor agrees
        to
        purchase its Pro Rata Share of the Incremental Purchase, and if the applicable
        Conduit Investor declines to make such purchase, the Managing Agent shall
        notify
        the Committed Investors in such Investor Group of the Conduit Investor declining
        to make such purchase and the Committed Investors in such Investor Group
        each
        shall purchase its Pro Rata Share of the Incremental Purchase.

       

      (c)  On
        the date of each
        Incremental Purchase, upon satisfaction of the applicable conditions precedent
        set forth in Article VI,
        the applicable
        Investors shall make available to the related Managing Agent at its address
        listed beneath its signature on its signature page to this Agreement (or
        on the
        signature page to the Joinder Agreement pursuant to which it became a party
        hereto), for deposit to such account of Seller designated in the Purchase
        Notice, in immediately available funds, no later than 3:00 p.m. (New York
        time),
        an amount equal to such Investor’s Pro Rata Share of the aggregate Purchase
        Price of the Investor Interests then being purchased.

       

      Section
        1.3.  Payment
        Requirements.
        All amounts to be
        paid or deposited by any Seller Party pursuant to any provision of this
        Agreement shall be paid or deposited in accordance with the terms hereof
        no
        later than noon (New York time) on the day when due in immediately available
        funds, and if not received before noon (New York time) may, in each Managing
        Agent’s discretion, be deemed to be received on the next succeeding Business
        Day. If such amounts are payable to an Investor they shall be paid to the
        related Managing Agent, for the account of such Investor, at its address
        listed
        beneath its signature page to this Agreement (or on the signature page to
        the
        Joinder Agreement pursuant to which it became a party hereto) until otherwise
        notified by such Managing Agent. Yield shall be computed as provided in the
        definition thereof, and all computations of per annum fees and other per
        annum
        amounts hereunder or under the Fee Letters shall be made on the basis of
        a year
        of 360 days for the actual number of days elapsed. If any amount hereunder
        shall
        be payable on a day which is not a Business Day, such amount shall be payable
        on
        the next succeeding Business Day.

       

      ARTICLE
        II

       

      PAYMENTS
        AND
        COLLECTIONS

       

      Section
        2.1.  Payments.
Seller
        shall
        promptly pay on each Monthly Settlement Date and, from and after the
        Amortization Date, on each other Business Day when due as otherwise provided
        in
        this Agreement (a) to each Managing Agent, for the account of the related
        Investor or Investors in its Investor Group, (i) such fees as set forth
        in the
        Fee Letters,
        (ii) all
        amounts payable
        as Yield, (iii) all amounts payable pursuant to Sections 2.2,
2.7
        or 2.8,
        (iv) all amounts
        payable pursuant to Article X,
        if any, (v) all
        Breakage Costs and (vi) all Default Fees, and (b) to Servicer, all Servicer
        Expenses (the obligations described in clause (a) and (b) of this sentence,
        collectively, the “Obligations”).
        In addition,
        Seller shall pay on the date of this Agreement the amounts specified to be
        due
        and payable on such date in the Fee Letters. If Seller fails to pay any of
        the
        Obligations when due, or if Servicer fails to make any deposit required to
        be
        made by it under this Agreement when due, such Person agrees to pay, on demand,
        the Default Fee in respect thereof until paid. In no event shall any provision
        of this Agreement or the Fee Letters require the payment or permit the
        collection of any amounts hereunder in excess of the maximum permitted by
        applicable law. If at any time Seller receives any Collections,
        Seller shall
        immediately pay such Collections
        to
        Servicer for application in accordance with the terms and conditions hereof
        and,
        at all times prior to such payment, such Collections
        shall
be
        held in trust by Seller for the exclusive benefit of the Investors, the Managing
        Agents and the Program Agent.

       

      Section
        2.2.  Reinvestments
        and Purchase Price Adjustments.

       

      (a)  Seller
        hereby
        requests, and the Investors hereby agree to make, on each Business Day prior
        to
        the Amortization Date, subject to (i) the conditions precedent set forth
        in
Section 6.2
        and (ii) the
        condition that, after giving effect thereto, the aggregate of the Investor
        Interests shall not exceed 100%, a reinvestment (each a “Reinvestment”)
        with that
        portion of the balance of each and every Collection received that is part
        of any
        Investor Interest, such that after giving effect to such Reinvestment, the
        amount of Aggregate Capital immediately after such receipt and corresponding
        Reinvestment shall be equal to the amount of Aggregate Capital immediately
        prior
        to such receipt. Payments to Seller in respect of Reinvestments during any
        Monthly Period shall be made as provided in clause (i)
        or
        (ii)(B)
        of Section 2.3,
Section 2.4(a),
Section 2.4(b)
        or Section
        2.4(c)(iii),
        subject to the
        following provisions of this Section 2.2.

       

      (b)  In
        the event that
        notwithstanding the provisions of Section 2.3
        or 2.4
        hereof to the
        contrary, Collections or other amounts are remitted to Seller in respect
        of
        Reinvestments on a day and, as a result thereof, the aggregate of the Investor
        Interests on such day shall exceed 100%, computed based on the Current Month
        Net
        Receivables Pool Balance for such day as reflected in a Daily Report or as
        otherwise determined by Servicer or the Program Agent, then within one Business
        Day following the date on which such Daily Report was delivered or the date
        of
        such determination, as applicable, Seller shall remit to Servicer immediately
        available funds in an amount equal to such excess payment for deposit into
        the
        Collection Account as a Special Adjustment Amount and to be treated as
        Collections under this Agreement.

       

      (c)  In
        addition, the
        amounts remitted to Seller in respect of Reinvestments for a Monthly Period
        as
        described in Section 2.2(a)
        shall be subject
        to reconciliation on the Monthly Settlement Date for such Monthly Period
        (or, if
        earlier, on the Amortization Date) as provided in this Section 2.2(c).
        If at the end of
        any Monthly Period (the “Subject
        Monthly
        Period”)
        prior to the
        Monthly Period in which the Amortization Date occurs,

       

      (i)  the
        sum of the
        Capital of the Investor Interests at such time plus the Aggregate Reserves
        computed for the Subject Monthly Period exceeded

       

      (ii)  the
        sum of (A) the
        Net Receivable Pool Balance at the end of the Subject Monthly Period, plus
        (B)
        the Collection Account Amount on the last Daily Settlement Date for the Subject
        Monthly Period (after giving effect to any changes therein on such Daily
        Settlement Date), plus (C), if determined in a report from the Servicer
        delivered to the Program Agent prior to the Monthly Settlement Date for the
        Subject Monthly Period, the aggregate Outstanding Balance of Eligible
        Receivables which were first included in the Current Month Net Receivables
        Pool
        Balance for the Monthly Period immediately following the Subject Monthly
        Period
        (calculated as though there were no Carryback Receivables) on any day prior
        to
        the Monthly Report Date for the Subject Monthly Period (or, if earlier, the
        Amortization Date),

       

      Seller
        shall remit
        to Servicer on the Monthly Settlement Date for the Subject Monthly Period
        immediately available funds in an amount equal to the lesser of (x) the excess
        of the amount described in clause (i)
        above over the
        amount described in clause (ii)
        above or (y) the
        aggregate amounts remitted to Seller in respect of Reinvestments for the
        Subject
        Monthly Period as described in Section 2.2(a),
        for deposit into
        the Collection Account as a Special Adjustment Amount and to be treated as
        Collections under this Agreement. If the Amortization Date occurs and at
        the
        close of business on the immediately preceding day the sum of the Capital
        of the
        Investor Interests plus the then applicable Aggregate Reserves exceeded the
        sum
        of the Net Receivable Pool Balance plus the Collection Account Amount, Seller
        shall remit to Servicer on the Amortization Date immediately available funds
        in
        an amount equal to the lesser of such excess or the aggregate amounts remitted
        to Seller in respect of Reinvestments for the Monthly Period in which the
        Amortization Date occurred as described in Section 2.2(a),
        for deposit into
        the Collection Account as a Special Adjustment Amount and to be treated as
        Collections under this Agreement.

       

      Section
        2.3.  Collections.
        On each day
        Servicer shall set aside and hold in trust for the holder of each Investor
        Interest, all Collections received on such day, any other amounts received
        by or
        on behalf of Seller from the Originator or Finance LLC pursuant to a Sale
        Agreement and an additional amount of funds available to Seller for the payment
        of any accrued and unpaid Obligations owed by Seller and not previously paid
        by
        Seller in accordance with Section 2.1,
        and shall pay and
        remit apply such funds as follows:

       

      (i)  on
        each Business
        Day during a Monthly Period that is prior to both the Cash Receipt Date and
        the
        Amortization Date, remit such funds to Seller in respect of Reinvestments
        for
        such Monthly Period pursuant to Section 2.2
        (and subject to
        the provisions of Section 2.2(c)),
        so long as, on
        such Business Day, after giving effect to such remittance of funds, the
        aggregate of the Investor Interests shall not exceed 100%, and otherwise
        deposit
        such amounts into the Collection Account, and otherwise deposit the remainder
        of
        such amounts into the Collection Account;

       

      (ii)  on
        each Cash
        Receipt Date prior to the Amortization Date and on each Business Day thereafter
        during a Monthly Period prior to the Amortization Date, (A) deposit such
        amounts
        into the Collection Account until the amount on deposit therein equals the
        Required Collection Account Amount for such Business Day, and (B) (x) at
        Servicer’s election, remit the balance (if any) of such funds to Seller in
        respect of Reinvestments for such Monthly Period pursuant to Section 2.2
        (and subject to
        the provisions of Section 2.2(c)),
        so long as,
        after giving effect to such remittance of funds, the aggregate of the Investor
        Interests shall not exceed 100%, and otherwise (y) deposit such balance of
        such
        funds, or the remainder thereof, as applicable, into the Collection Account;
        and

       

      (iii)  on
        each Business
        Day from and after the Amortization Date, deposit such amounts into the
        Collection Account for the sole benefit of the Program Agent, the Managing
        Agent
        and the Investors.

       

      If
        at any time
        Servicer determines that an amount deposited into the Collection Account
        does
        not constitute an amount to be deposited therein pursuant to this Section 2.3
        or otherwise
        pursuant to this Agreement or any Transaction Document, Servicer shall withdraw
        such amounts from the Collection Account and pay such amounts to the Person
        that
        Servicer determines is entitled thereto.

       

      Section
        2.4.  Withdrawals
        from
        Collection Account prior to Amortization Date.
        Prior to the
        occurrence of the Amortization Date, Servicer shall withdraw from the Collection
        Account and pay to the persons entitled thereto the following amounts on
        the
        following dates:

       

      (a)  at
        Servicer’s
        election, on each Daily Settlement Date other than the last Daily Settlement
        Date with respect to a Monthly Period, to Seller in respect of Reinvestments
        for
        such Monthly Period pursuant to Section 2.2
        (and subject to
        the provisions of Section 2.2(c)),
        an amount equal
        to the excess (if any) of (x) the amount on deposit in the Collection Account
        on
        such date over (y) the Required Collection Account Amount on such date (computed
        based on the Estimated Current Month Net Receivables Pool Balance for such
        Daily
        Settlement Date);

       

      (b)  at
        Servicer’s
        election, on the last Daily Settlement Date with respect to a Monthly Period,
        to
        Seller, an amount equal to the excess (if any) of (x) the amount on deposit
        in
        the Collection Account on such date over (y) the Required Collection Account
        Amount on such date (computed based on the Current Month Net Receivables
        Pool
        Balance for the last Business Day of such Monthly Period);

       

      (c)  on
        each Monthly
        Settlement Date:

       

      (i)  first,
        in the following
        order or priority: (A) to Servicer the Servicer Expenses and the Servicer
        Fee,
        if Seller or one of its Affiliates is not then acting as Servicer, (B) to
        the
        Program Agent and each Managing Agent, such Person’s costs of collection and
        enforcement of this Agreement, (C) ratably to the Persons entitled thereto
        all
        accrued and unpaid fees under the Fee Letters and all Yield due and payable,
        and
        (D) ratably to the Persons entitled thereto, all other unpaid Obligations,
        except for the Servicer Fee and the Servicer Expenses if Seller or one of
        its
        Affiliates is acting as Servicer, and (E) the Servicer Fee and the Servicer
        Expenses, if Seller or one of its Affiliates is acting as Servicer;

       

      (ii)  second,
        to the reduction
        of the Aggregate Capital in an amount, if any, necessary so that on such
        Monthly
        Settlement Date (A) the Aggregate Capital does not exceed the Program Limit
        in
        effect for such date and (B) the aggregate of the Investor Interests does
        not
        exceed 100%, applied ratably in accordance with the Capital Pro Rata Share
        of
        the Investors of each such Managing Agent’s Investor Group; and

       

      (iii)  third,
        any balance
        remaining thereafter shall be remitted from Servicer to Seller on such Monthly
        Settlement Date in respect of Reinvestments for the preceding Monthly Period
        pursuant to Section 2.2.

       

      Section
        2.5.  Application
        of
        Collections Following Amortization.
        On each Business
        Day (or, in the case of clauses (i) and (vi) below, on each Monthly Settlement
        Date) from and after the occurrence of the Amortization Date, Servicer shall
        withdraw from the Collection Account and pay to the persons entitled thereto
        the
        following amounts on the following dates:

       

      (i)  first,
        to Servicer and
        amount equal to the Servicer Expenses and the Servicer Fee, if Seller or
        one of
        its Affiliates is not then acting as Servicer,

       

      (ii)  second,
        to the Program
        Agent and each Managing Agent, an amount equal to such Person’s costs of
        collection and enforcement of this Agreement,

       

      (iii)  third,
        ratably to the
        Persons entitled thereto, all accrued and unpaid fees under the Fee Letters
        and
        all Yield due and payable hereunder,

       

      (iv)  fourth,
        to the Managing
        Agents, ratably in accordance with the Capital Pro Rata Share of the Investors
        of each such Managing Agent’s Investor Group, the amount required to reduce the
        Aggregate Capital to zero,

       

      (v)  fifth,
        ratably to the
        Persons entitled thereto, an amount equal to all other unpaid Obligations,
        except for the Servicer Fee and the Servicer Expenses if Seller or one of
        its
        Affiliates is acting as Servicer,

       

      (vi)  sixth,
        to Servicer, an
        amount equal to the Servicer Expenses and the Servicer Fee , if Seller or
        one of
        its Affiliates is acting as Servicer, and

       

      (vii)  seventh,
        after the
        Aggregate Unpaids have been reduced to zero, to Seller.

       

      Collections
        applied
        to the payment of Aggregate Unpaids shall be distributed in accordance with
        the
        aforementioned provisions, and, giving effect to each of the priorities set
        forth above in this Section 2.5
        and unless
        otherwise provided therein, shall be shared ratably (within each priority)
        among
        the Program Agent, the Managing Agents and the Investors in accordance with
        the
        amount of such Aggregate Unpaids owing to each of them in respect of each
        such
        priority.

       

      Section
        2.6.  Collection
        Account.
        In connection
        with this Agreement, Servicer shall establish prior to date of the initial
        Incremental Purchase and thereafter maintain, in the name of Seller for the
        benefit of the
        Investors, the
        Managing Agents and the Program Agent,
        a segregated
        deposit account (the “Collection
        Account”)
        bearing a
        designation clearly indicating that the funds deposited therein are held
        for the
        ratable benefit of the Investors. The Collection Account shall at all times
        be
        maintained at a depository bank approved by the Program Agent and shall be
        subject at all times to a Blocked Account Agreement that is in full force
        and
        effect. Servicer shall make deposits into, and make withdrawals from, the
        Collection Account as provided in this Agreement. Any interest earnings on
        amounts on deposit from time to time in the Collection Account shall be applied
        pursuant to this Agreement as Collections. The Program Agent for the benefit
        of
        itself, the
        Investors and
        the Managing Agents shall
        possess all
        right, title and interest in all funds on deposit from time to time in the
        Collection and in all proceeds thereof (including all income
        thereon).

       

      Section
        2.7.  Payment
        Rescission.
        No payment of any
        of the Aggregate Unpaids shall be considered paid or applied hereunder to
        the
        extent that, at any time, all or any portion of such payment or application
        is
        rescinded by application of law or judicial authority, or is otherwise returned
        or refunded for any reason. Seller shall remain obligated for the amount
        of any
        payment or application so rescinded, returned or refunded, and shall promptly
        pay to the Program Agent (for application to the Person or Persons who suffered
        such rescission, return or refund) the full amount thereof, plus the Default
        Fee
        from the date of any such rescission, return or refunding.

       

      Section
        2.8.  Deemed
        Collections and other Adjustment Payments. 

       

      (a)  For
        purpose of this
        Agreement, Seller shall be deemed to have received a Collection of a Receivable,
        allocated as a reduction of Junior Interest, to the extent that (i) the Net
        Outstanding Balance of any such Receivable is either (x) reduced as a result
        of
        any defective or rejected goods or services, any discount or any adjustment
        or
        otherwise by Seller (other than cash Collections on account of such Receivable)
        or (y) reduced or canceled as a result of a setoff in respect of any claim
        by
        any Person (whether such claim arises out of the same or a related transaction
        or an unrelated transaction), or (ii) any of the representations or warranties
        in Article V
        are no longer true
        with respect to such Receivable (unless such untrue representation or warranty
        affects only any portion thereof constituting an Additional
        Amount).

       

      (b)  In
        the event Seller
        at any time receives any amounts representing Adjustment Payments, Seller
        shall
        immediately pay such amounts to Servicer for application as a Collection
        in
        accordance with the terms and conditions hereof and, at all times prior to
        such
        payment, such amounts shall
be
        held in trust by
        Seller for the exclusive benefit of the Investors, the Managing Agents and
        the
        Program Agent.

       

      ARTICLE
        III

       

      CONDUIT
        FUNDING

       

      Section
        3.1.  Yield.
        Seller shall pay
        Yield with respect to the Capital of each Investor Interest of each Conduit
        Investor for each day that any Capital in respect of such Investor Interest
        is
        outstanding at the applicable CP Rate; provided
        that any Investor
        Interest of a Conduit Investor, or portion thereof, which such Conduit Investor
        is not then funding the proceeds of Commercial Paper shall accrue Yield pursuant
        to Article IV.

       

      Section
        3.2.  Payments.
        On each Monthly
        Settlement Date, Seller shall pay to the Managing Agent (for the benefit
        of the
        Conduit Investor in its Investor Group) an aggregate amount equal to all
        accrued
        and unpaid Yield in respect of the Capital of the Investor Interest of such
        Conduit Investor for the immediately preceding Accrual Period in accordance
        with
Article II.

       

      Section
        3.3.  Calculation
        of
        Yield.
        Not later than
        the Business Day immediately preceding each Monthly Report Date, each Conduit
        Investor shall calculate the aggregate amount of Yield in respect of the
        Capital
        of the Investor Interest of such Conduit Investor for the Accrual Period
        ending
        on the next following Monthly Settlement Date and shall notify Seller and
        Servicer of such aggregate amount.

       

      ARTICLE
        IV

       

      COMMITTED
        INVESTOR
        FUNDING

       

      Section
        4.1.  Committed
        Investor Funding Provisions.
        Each Investor
        Interest of Investors which are not Conduit Investors and each Investor Interest
        of Conduit Investors as to which Yield is to be determined pursuant to this
        Article IV,
        shall accrue
        Yield for each day during an Accrual Period at the applicable Bank Rate in
        accordance with the terms and conditions hereof. The initial Bank Rate for
        any
        Investor Interest funded by such Investors pursuant to the terms and conditions
        hereof shall be the LIBO Rate, unless (i) the availability of the LIBO Rate
        has
        been suspended pursuant to Section 4.3
        below, or (ii) the
        applicable Managing Agent shall designate the Alternate Rate as the applicable
        rate of funding for such Investor Interest. If Yield on all or any portion
        of
        the Investor Interest of a Conduit Investor is first to be determined pursuant
        to this Article IV
        on a date other
        than the first day of an Accrual Period or if an Investor (other than a Conduit
        Investor) acquires all or any portion of the Investor Interest of the Conduit
        Investor in its Investor Group by assignment from such Conduit Investor,
        the
        initial Bank Rate for such Investor Interest (or such portion thereof) shall
        be
        determined in accordance with the preceding sentence.

       

      Section
        4.2.  Yield
        Payments.
        On each Monthly
        Settlement Date, Seller shall pay to the Managing Agent (for the benefit
        of each
        Investor in its Investor Group which is not Conduit Investors and the Conduit
        Investor in its Investor Group, if the Yield on its Investor Interest is
        to be
        determined pursuant to this Article IV)
        an aggregate
        amount equal to all accrued and unpaid Yield in respect of the Capital of
        the
        Investor Interest of such Investors for the immediately preceding Accrual
        Period
        in accordance with Article II.

       

      Section
        4.3.  Suspension
        of
        the LIBO Rate.
        If any Investor
        notifies its related Managing Agent that it has determined in good faith
        that
        (i) the introduction of or any change in or in the interpretation or application
        of any law or regulation by any Governmental Authority (in each case after
        the
        date of this Agreement) makes it unlawful, or any central bank or other
        Governmental Authority asserts after the date of this Agreement that it is
        unlawful, for such Investor or its Funding Source to fund or maintain Investor
        Interests at the LIBO Rate, (ii) by reasons of circumstances affecting the
        interbank Eurodollar market either adequate and reasonable means do not exist
        for ascertaining the LIBO Rate for an Accrual Period, (iii) the applicable
        LIBO
        Rate will not adequately and fairly reflect the cost to such Investor or,
        if
        applicable, its Funding Source, of funding or maintaining Investor Interests,
        or
        (iv) such Investor or, if applicable, its Funding Source, is subject to
        restrictions on the amount of a category of Eurodollar liabilities or assets
        that it may hold corresponding to the Investor Interests, then (A) such Managing
        Agent shall notify the Program Agent and Seller and shall suspend the
        availability of the LIBO Rate with respect to each affected Investor until
        such
        later date on which each affected Investor shall have notified its related
        Managing Agent that the applicable circumstances described above in this
        Section 4.3
        no longer exist,
        and (B) any affected Investor Interest then accruing Yield at such LIBO Rate
        shall thereupon and thereafter, until the first day of an Accrual Period
        on
        which such suspension has terminated, accrue Yield based upon the Alternate
        Rate.

       

      ARTICLE
        V

       

      REPRESENTATIONS
        AND
        WARRANTIES

       

      Section
        5.1.  Representations
        and Warranties of the Seller Parties.
        Each Seller Party
        hereby represents and warrants to the Program Agent, the Managing Agents
        and the
        Investors, as to itself, as of the date hereof and as of the date of each
        Incremental Purchase and the date of each Reinvestment that:

       

      (a)  Existence
        and
        Power.
        Such Seller Party
        is (in the case of Servicer) a corporation duly organized or (in the case
        of
        Seller) a limited liability company duly formed, and in either case validly
        existing and in good standing under the laws of its state of organization
        and is
        duly qualified to do business and is in good standing as a foreign entity,
        and
        has and holds all power and all governmental licenses, authorizations, consents
        and approvals required to carry on its business in each jurisdiction in which
        its business is conducted except where the failure to so qualify or so hold
        could not reasonably be expected to have a Material Adverse Effect.

       

      (b)  Power
        and
        Authority; Due Authorization, Execution and Delivery.
        The execution and
        delivery by such Seller Party of this Agreement, each other Transaction Document
        to which it is a party, and the performance of its obligations hereunder
        and
        thereunder and, in the case of Seller, Seller’s purchase of Receivables under
        the Second Tier Sale Agreement, its sale of Investor Interests hereunder
        and its
        use of the proceeds of such sales, are within its powers and authority and
        have
        been duly authorized by all necessary action on its part. This Agreement
        and
        each other Transaction Document to which such Seller Party is a party has
        been
        duly executed and delivered by such Seller Party.

       

      (c)  No
        Conflict.
        The execution and
        delivery by such Seller Party of this Agreement, each other Transaction Document
        to which it is a party, and the performance of its obligations hereunder
        and
        thereunder and, in the case of Seller, its purchase of Receivables pursuant
        to
        the Second Tier Sale Agreement and its sale of Investor Interests hereunder,
        (i)
        do not contravene or violate (A) its certificate of incorporation or bylaws
        or
        its limited liability company agreement or certificate of formation, as
        applicable, (B) any law, rule or regulation applicable to it, including the
        Natural Gas Act, as amended, and the rules and regulations of FERC thereunder,
        (C) any restrictions under any agreement, contract or instrument to which
        it is
        a party or by which it or any of its property is bound, or (D) any order,
        writ,
        judgment, award, injunction or decree binding on or affecting it or its
        property, and (ii) do not result in the creation or imposition of any Adverse
        Claim on assets of such Seller Party or its Subsidiaries (except as created
        hereunder), except, in any case, where such contravention or violation could
        not
        reasonably be expected to have a Material Adverse Effect; and no transaction
        contemplated hereby requires compliance with any bulk sales act or similar
        law.

       

      (d)  Governmental
        Authorization.
        No authorization
        or approval or other action by, and no notice to or filing with (except as
        have
        been given, made or obtained), any governmental authority or regulatory body
        (including FERC) is required for the due execution and delivery by such Seller
        Party of this Agreement and each other Transaction Document to which it is
        a
        party and the performance of its obligations hereunder and thereunder, and,
        in
        the case of Seller, its purchase of Receivables pursuant to the Second Tier
        Sale
        Agreement and its issuance of the Junior Interest and the sale of Investor
        Interests hereunder, except for the filing of the financing statements required
        hereunder, which filings have been duly made. Seller does not, and will not
        during the term of this Agreement, engage in the transportation of natural
        gas
        in interstate commerce, or the sale in interstate commerce of such gas for
        resale. Each Seller Party jointly and severally represents and warrants that
        no
        authorization or approval or other action by, and no notice to or filing
        with
        FERC is required for the due execution and delivery by Seller of this Agreement
        and each other Transaction Document to which it is a party and the performance
        of its obligations hereunder and thereunder.

       

      (e)  Actions,
        Suits.
        (i) With respect
        to Seller, there is no litigation, action, suit or other legal or governmental
        proceeding pending or, to the best knowledge of either Seller Party, threatened,
        at law or in equity, or before or by any arbitrator or governmental authority
        or
        regulatory body relating to the transactions under this Agreement; and (ii)
        with
        respect to Servicer, there is no litigation, action, suit or other legal
        or
        governmental proceeding pending, or to the best knowledge of either Seller
        Party, threatened, against or affecting it, or any of its properties, in
        equity,
        or before or by any court, arbitrator or governmental authority relating
        to the
        transactions under this Agreement which, in any such case, could reasonably
        be
        expected to have a Material Adverse Effect, except for the proceedings described
        in Servicer’s annual report on Form 10 K for the year ended December 31,
        2005 or its quarterly report on Form 10 Q for the fiscal quarter ended
        June 30, 2006 as filed with the Securities and Exchange
        Commission.

       

      (f)  Binding
        Effect.
        This Agreement
        and each other Transaction Document to which such Seller Party is a party
        constitute the legal, valid and binding obligations of such Seller Party
        enforceable against such Seller Party in accordance with their respective
        terms,
        except as such enforcement may be limited by applicable bankruptcy, insolvency,
        reorganization or other similar laws relating to or limiting creditors’ rights
        generally and by general principles of equity (regardless of whether enforcement
        is sought in a proceeding in equity or at law).

       

      (g)  Accuracy
        of
        Information.
        All written
        information heretofore furnished by such Seller Party or any of its Affiliates
        to the Program Agent, the Managing Agents or the Investors (i) pursuant to
        any
        requirement of this Agreement or any of the other Transaction Document, (ii)
        in
        any Daily Report, Mid-Month Report or Monthly Report, or (iii) listed or
        described on Schedule C hereto is, and all such information hereafter
        furnished by such Seller Party or any of its Affiliates to the Program Agent,
        the Managing Agents or the Investors will be, true and accurate in all material
        respects on the date such information is stated or certified and does not
        and
        will not, when furnished, contain any material misstatement of fact or omit
        to
        state a material fact or any fact necessary to make the statements contained
        therein, when taken as a whole, not misleading (it being recognized that
        any
        estimated amounts, projections or forecasts provided to the Program Agent,
        the
        Managing Agents or the Investors are based on estimates and assumptions believed
        in good faith by such Seller Party on the date hereof or (if later) the date
        of
        delivery to be reasonable as of their date, and that actual results during
        the
        periods covered by such projections or forecasts may differ from projected
        or
        forecasted results).

       

      (h)  Use
        of
        Proceeds.
        No proceeds of
        any purchase hereunder will be used (i) for a purpose that violates, or would be
        inconsistent with, Regulation T, U or X promulgated by the Board of Governors
        of
        the Federal Reserve System from time to time or (ii) to acquire any security
        in
        any transaction which is subject to Section 12, 13 or 14 of the Securities
        Exchange Act of 1934, as amended.

       

      (i)  Good
        Title.
        Each purchase of
        Receivables by Seller or Finance LLC from Finance LLC or the Originator,
        as the
        case may be, pursuant to a Sale Agreement was made in good faith and without
        knowledge of any Adverse Claim against the Receivables purchased, except
        as
        contemplated by the Transaction Documents. Immediately prior to each purchase
        hereunder, Seller shall be the legal and beneficial owner of the Receivables
        and
        Related Security with respect thereto, free and clear of any Adverse Claim,
        except as contemplated by the Transaction Documents. There have been duly
        filed
        all financing statements or other similar instruments or documents necessary
        under the UCC of all appropriate jurisdictions to perfect Seller’s ownership
        interest in each Receivable, its Collections and the Related Security with
        respect thereto.

       

      (j)  Perfection.
        This Agreement,
        together with the filing of the financing statements contemplated hereby,
        is
        effective to, and shall, upon each purchase hereunder, transfer to the Program
        Agent for the benefit of the relevant Investor or Investors (and the Program
        Agent for the benefit of such Investor or Investors shall acquire from Seller)
        a
        valid and perfected first priority undivided percentage ownership or security
        interest in each Receivable existing or hereafter arising and in the Related
        Security and Collections with respect thereto, free and clear of any Adverse
        Claim, except as contemplated by the Transaction Documents. 

       

      (k)  Places
        of
        Business etc.
        The principal
        places of business and chief executive office of such Seller Party and the
        principal offices where it keeps its Records are located at the address(es)
        listed on Exhibit III
        or such other
        locations of which the Program Agent has been notified in accordance with
        Section 7.2(a)
        and where all
        action required by Section 13.4(a)
        has been taken and
        completed. Seller is organized as a limited liability company under the laws
        of
        the state of Delaware. Seller’s Federal Employer Identification Number and the
        organizational identification number from its jurisdiction of organization
        are
        correctly set forth on Exhibit III.
        In the past five
        years. Seller has not used any names, trade names or assumed names other
        than
        the name in which it has executed this Agreement.

       

      (l)  Collections.
        The names and
        addresses of all Collection Banks, together with the account numbers of the
        Blocked Accounts of Seller at each Collection Bank, the post office box number
        of each Lock-Box are listed on Exhibit IV,
        as such exhibit
        may be amended from time to time in accordance with Section 7.2(b).

       

      (m)  Material
        Adverse
        Effect.
        Seller represents
        and warrants that since the date of this Agreement, no event has occurred
        that
        would have a Material Adverse Effect.

       

      (n)  Ownership
        of
        Seller.
        Finance LLC
        directly owns 100% of the issued and outstanding membership interests of
        Seller,
        free and clear of any Adverse Claim. There are no options, warrants or similar
        rights to acquire membership interests or other securities of Seller. Seller
        has
        no Subsidiaries.

       

      (o)  Not
        an
        Investment Company.
        Such Seller Party
        is not an “investment company” within the meaning of the Investment Company Act
        of 1940, as amended, or any successor statute.

       

      (p)  Compliance
        with
        Law.
        Such Seller Party
        and its Subsidiaries have complied in all respects with all applicable laws,
        rules, regulations, orders, writs, judgments, injunctions, decrees or awards
        to
        which it or they may be subject, except where the failure to so comply could
        not
        reasonably be expected to have a Material Adverse Effect. Each Receivable,
        together with the Contract related thereto, does not contravene any laws,
        rules
        or regulations applicable thereto (including the Natural Gas Act, the rules
        and
        regulations of FERC thereunder and laws, rules and regulations relating to
        truth
        in lending, fair credit billing, fair credit reporting, equal credit
        opportunity, fair debt collection practices and privacy), and no part of
        such
        Contract is in violation of any such law, rule or regulation, in each case
        except where such contravention or violation could not reasonably be expected
        to
        have a material adverse effect on the collectibility of such Receivable (other
        than Additional Amounts) or a Material Adverse Effect.

       

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

       

      (r)  Payments
        to
        Finance LLC, etc.
        With respect to
        each Receivable transferred to Seller under the Second Tier Sale Agreement,
        Seller has given reasonably equivalent value to Finance LLC in consideration
        therefor and such transfer was not made for or on account of an antecedent
        debt.
        No transfer by Finance LLC of any Receivable under the Second Tier Sale
        Agreement is or may be voidable under any section of the Federal Bankruptcy
        Code
        or other statutory provisions or common law or equitable action by any
        Person.

       

      (s)  Enforceability
        of Contracts.
        Each Contract
        with respect to each Receivable included in the Net Receivable Pool Balance
        is
        effective to create, and has created, a legal, valid and binding obligation
        of
        the related Obligor to pay the Outstanding Balance of the Receivable created
        thereunder and any accrued interest thereon, enforceable against the Obligor
        in
        accordance with its terms, except as such enforcement may be limited by
        applicable bankruptcy, insolvency, reorganization or other similar laws relating
        to or limiting creditors’ rights generally and by general principles of equity
        (regardless of whether enforcement is sought in a proceeding in equity or
        at
        law); provided
        that no
        representation is made in this paragraph regarding Additional
        Amounts.

       

      (t)  Eligible
        Receivables.
        Each Receivable
        included in the Net Receivable Pool Balance as at any date of determination
        was
        or will be an Eligible Receivable on such date.

       

      (u)  Net
        Receivable
        Pool Balance.
        Immediately after
        giving effect to each purchase hereunder, the aggregate of the Investor
        Interests does not exceed 100%.

       

      (v)  Purpose.
        Seller has
        determined that, from a business viewpoint, the purchases of the Receivables
        and
        related interests thereto from Finance LLC under the Second-Tier Sale Agreement,
        and the sales of Investor Interests to the Investors and the other transactions
        contemplated herein, are in the best interests of Seller. No Incremental
        Purchase or Reinvestment hereunder is or may be voidable under any section
        of
        the Federal Bankruptcy Code or other statutory provisions or common law or
        equitable action by any Person.

       

      (w)  Collection
        of
        Third Party Amounts.
        No portion of the
        Collections in respect of any Receivable represents amounts such Seller Party
        is
        collecting on behalf of third parties.

       

      (x)  Servicer
        Fee.
        The amount of the
        Servicer Fee represents a fair market Servicer Fee for the servicing obligations
        performed by Servicer hereunder.

       

      ARTICLE
        VI

       

      CONDITIONS
        OF
        PURCHASES

       

      Section
        6.1.  Conditions
        Precedent to Initial Incremental Purchase and Restatement.
        The initial
        Incremental
        Purchase hereunder
        is
        subject to the conditions precedent that (a) the Program Agent shall have
        received on or before the date of such purchase those
        documents
        listed on Schedule B (in sufficient
        copies
        for each Managing Agent), each (unless otherwise indicated) dated the date
        of
        the initial Incremental Purchase, in form and substance satisfactory to the
        Managing Agents
        and (b) all fees
        and expenses required to be paid on such date pursuant to the terms of this
        Agreement and the Fee Letters have been paid.

       

      Section
        6.2.  Conditions
        Precedent to All Purchases.
        Each Incremental
        Purchase of an Investor Interest shall be subject to the further conditions
        precedent that in the case of each such purchase: (a) Servicer or Computation
        Agent shall have delivered to the Managing Agents on or prior to the date
        of
        such purchase, in form and substance satisfactory to the Managing Agents,
        all
        Periodic Reports as and when due under Section 8.5
        or Section 8.6(b);
        (b) the
        Amortization Date shall not have occurred; and (c) on the date of each such
        Incremental Purchase, the following statements shall be true (and acceptance
        of
        the proceeds of such Incremental Purchase shall be deemed a representation
        and
        warranty by Seller that such statements are then true):

       

      (i)  the
        representations
        and warranties set forth in Section 5.1
        are true and
        correct in all material respects on and as of the date of such Incremental
        Purchase as though made on and as of such date;

       

      (ii)  no
        event has
        occurred and is continuing, or would result from such Incremental Purchase,
        that
        will constitute an Amortization Event, and no event has occurred and is
        continuing, or would result from such Incremental Purchase, that would
        constitute a Potential Amortization Event; and

       

      (iii)  the
        Aggregate
        Capital does not exceed the Program Limit and the aggregate of the Investor
        Interests does not exceed 100%.

       

      It
        is expressly
        understood that, unless otherwise directed by any Managing Agent or any Investor
        or unless an
        Amortization
        Event shall have occurred and be continuing,
        each Reinvestment
        shall, occur automatically on each day that Servicer shall receive any
        Collections without the requirement that any further action be taken on the
        part
        of any Person and notwithstanding the failure of Seller to satisfy any of
        the
        foregoing conditions precedent.

       

      ARTICLE
        VII

       

      COVENANTS

       

      Section
        7.1.  Affirmative
        Covenants of the Seller Parties.
        Until the date on
        which the Aggregate Unpaids have been indefeasibly paid in full and this
        Agreement terminates in accordance with its terms, each Seller Party hereby
        covenants, as to itself, as set forth below:

       

      (a)  Reporting.
        Such Seller Party
        will maintain, for itself and each of its Subsidiaries, a system of accounting
        established and administered in accordance with GAAP, and furnish or cause
        to be
        furnished to the Program Agent and the Managing Agents:

       

      (i)  Annual
        Reporting.
        Within 120 days
        after the close of each of Seller’s fiscal years, unaudited financial statements
        (which shall include balance sheets, statements of income and changes in
        stockholders’ equity and a statement of cash flows) for such fiscal year, all
        certified by a Responsible Officer of Seller as fairly presenting in all
        material respects the financial condition, results of operations and cash
        flows
        of Seller in accordance with GAAP, subject to the omission of footnote
        disclosure

       

      (ii)  Quarterly
        Reporting.
        Within 60 days
        after the close of the first three (3) quarterly periods of each of Seller’s
        fiscal years, unaudited balance sheets of Seller as at the close of each
        such
        period and statements of income and changes in stockholders’ equity and an
        unaudited statement of cash flows for Seller for the period from the beginning
        of such fiscal year to the end of such quarter, all certified by a Responsible
        Officer of Seller as fairly presenting in all material respects the financial
        condition, results of operations and cash flows of Seller in accordance with
        GAAP, subject to normal year-end adjustments and omission of footnote
        disclosure.

       

      (iii)  Compliance
        Certificate.
        Together with the
        financial statements required hereunder, a compliance certificate in
        substantially the form of Exhibit V
        signed by Seller’s
        Responsible Officer and dated the date of such annual financial statement
        or
        such quarterly financial statement, as the case may be.

       

      (b)  Notices.
        Such Seller Party
        will notify the Program Agent and the Managing Agents in writing of or, if
        applicable, provide the Program Agent and the Managing Agents copies of the
        following:

       

      (i)  Change
        in Credit
        and Collection Policy.
        At least thirty
        (30) days prior to the effectiveness of any material change in or material
        amendment to the Credit and Collection Policy, a copy of the Credit and
        Collection Policy then in effect and a notice (A) indicating such change
        or
        amendment, and (B) if such proposed change or amendment would be reasonably
        likely to materially adversely affect the collectibility of the Receivables
        (other than any portion thereof constituting an Additional Amount) or materially
        decrease the credit quality of any newly created Receivables (other than
        Additional Amounts), requesting each Managing Agent’s consent
        thereto.

       

      (ii)  Copies
        of
        Notices.
        Promptly upon its
        receipt of any notice, request for consent, financial statements, certification,
        report or other communication under or in connection with any Transaction
        Document from any Person other than the Program Agent, any Managing Agent
        or any
        Investor, copies of the same.

       

      (iii)  Other
        Information.
        Promptly, from
        time to time, such other information, documents, records or reports relating
        to
        the Receivables or the condition, financial or otherwise, of such Seller
        Party
        as the Program Agent or any Managing Agent may from time to time reasonably
        request in order to protect the interests of the Program Agent, the Managing
        Agents, and the Investors under or as contemplated by this
        Agreement.

       

      (c)  Notices.
        Such Seller Party
        will notify the Program Agent and each Managing Agent in writing of any of
        the
        following promptly (and in any case within two Business Days) upon a Responsible
        Officer’s actual knowledge thereof, describing the same and, if applicable, the
        steps being taken with respect thereto:

       

      (i)  Amortization
        Events or Potential Amortization Events.
        The occurrence of
        each Amortization Event and each Potential Amortization Event, by a statement
        of
        a Responsible Officer of such Seller Party. 

       

      (ii)  Judgment
        and
        Proceedings.
        (A) All
        litigation and of all proceedings before any governmental authority against
        or
        involving Servicer or any of its Subsidiaries, except any litigation or
        proceeding that in the reasonable judgment of Servicer (taking into account
        the
        availability of appeals) is not likely to have a Material Adverse Effect;
        and
        (B) the entry of any judgment or decree or the institution of any litigation,
        arbitration proceeding or governmental proceeding against Seller.

       

      (iii)  Material
        Adverse
        Effect.
        The occurrence of
        any event or condition that has had, or could reasonably be expected to have,
        a
        Material Adverse Effect.

       

      (iv)  Defaults
        Under
        Other Agreements.
        If any
        Indebtedness of Servicer or any of its Subsidiaries in excess of $25,000,000
        shall have been become due prior to its stated maturity, or any such
        Indebtedness of Servicer or any of its Subsidiaries shall be declared to
        be due
        and payable or required to be prepaid, repurchased, redeemed or defeased
        (other
        than by a regularly scheduled payment or a prepayment upon the sale of assets
        otherwise permitted thereunder), prior to the date of maturity thereof, by
        reason of a payment default by Servicer or any of its Subsidiaries or a default
        by Servicer or any of its Subsidiaries in the performance of any term, provision
        or condition contained in any agreement under which any such Indebtedness
        was
        created or is governed.

       

      (v)  Termination
        Date.
        The occurrence of
        the “Termination Date” under and as defined in either Sale
        Agreement.

       

      (d)  Compliance
        with
        Laws and Preservation of Corporate Existence.
        Such Seller Party
        will comply in all respects with all applicable laws, rules, regulations,
        orders, writs, judgments, injunctions, decrees or awards to which it may
        be
        subject, and will obtain and maintain all applicable authorizations or approvals
        from governmental authorities or regulatory bodies (including FERC), except
        where the failure to so comply or to obtain or maintain such authorization
        or
        approval could not reasonably be expected to have a Material Adverse Effect.
        It
        will preserve and maintain its corporate or limited liability company (as
        applicable) existence, rights, franchises and privileges in the jurisdiction
        of
        its organization, and qualify and remain qualified in good standing as a
        foreign
        entity in each jurisdiction where its business is conducted, except where
        the
        failure to so preserve and maintain or qualify could not reasonably be expected
        to have a Material Adverse Effect.

       

      (e)  Audits.
        Such Seller Party
        will furnish to the Program Agent and its representatives at all times, upon
        reasonable prior notice, reasonable full access during regular business hours
        to
        all of its offices and Records (wheresoever located, including any repository
        used to store any such Records), as appropriate to verify its compliance
        with
        this Agreement, and permit the Program Agent and its representatives to examine
        and audit the same, and make photocopies and/or computer tape or other digital
        media replicas thereof, and it agrees to render to the Program Agent and
        its
        representatives, at its sole cost and expense, such clerical and other
        assistance as may be reasonably requested with regard thereto. The Program
        Agent
        and its representatives shall also have the right to discuss its affairs
        with
        such Seller Party’s officers and to verify under appropriate procedures the
        validity, amount, quality, quantity, value and condition of, or any other
        matter
        relating to, the Receivables and the Related Security. Prior to the occurrence
        of a Termination Event, the number and frequency of any such audits by the
        Program Agent shall be limited to such number and frequency as shall be
        reasonable in the exercise of the Program Agent’s reasonable commercial
        judgment, but shall in no event exceed one such audit per year. Each such
        audit
        shall be at the sole expense of Servicer.

       

      (f)  Keeping
        and
        Marking of Records and Books.

       

      (i)  Servicer
        will (and
        will cause the Originator to) maintain and implement administrative and
        operating procedures (including an ability to recreate records evidencing
        Receivables in the event of the destruction of the originals thereof), and
        keep
        and maintain all documents, books, records and other information reasonably
        necessary or advisable for the collection of all Receivables (including records
        adequate to permit the immediate identification of each new Receivable and
        all
        Collections of and adjustments to each existing Receivable). Servicer will
        (and
        will cause the Originator to) give the Program Agent and each Managing Agent
        notice of any material change in the administrative and operating procedures
        referred to in the previous sentence if such proposed change or amendment
        could
        be reasonably expected to adversely affect the collectibility of the Receivables
        or decrease the credit quality of any newly created Receivables.

       

      (ii)  Such
        Seller Party
        will (and will exercise its rights under the Transaction Documents to cause
        the
        Originator to) at all times maintain an account in its master records indicating
        the aggregate amount of Receivables sold by the Originator to Finance LLC
        pursuant to the First Tier Sale Agreement and in turn sold by Finance LLC
        to
        Seller pursuant to the Second Tier Sale and in which Seller has issued the
        Senior Interest and/or a security interest to the Program Agent pursuant
        to this
        Agreement.

       

      (g)  Compliance
        with
        Contracts and Credit and Collection Policy.
        Such Seller Party
        will (and will cause the Originator to) timely and fully (i) perform and
        comply
        in all material respects with all provisions, covenants and other promises
        required to be observed by it under the Contracts related to the Receivables
        to
        the extent a failure to comply would adversely affect the collectibility
        of such
        Receivables (including by giving rise to a present right of offset by the
        applicable Obligor) and (ii) comply in all material respects with the Credit
        and
        Collection Policy and its collection procedures in regard to each Eligible
        Receivable and the related Contract.

       

      (h)  Performance
        and
        Enforcement of Sale Agreement.
        Seller will
        perform its obligations and undertakings under and pursuant to the Second
        Tier
        Sale Agreement, will purchase Receivables thereunder in compliance with the
        terms thereof and will, to the extent necessary in its reasonable business
        judgment, enforce the rights and remedies accorded to Seller, directly or
        as
        assignee, under the Sale Agreements, provided
        that after the
        occurrence and during the continuation of an Amortization Event, Seller shall
        enforce its rights and remedies under the Sale Agreements at the direction
        of
        the Program Agent. Seller will take all actions to perfect and enforce its
        rights and interests (and the rights and interests of the Program Agent and
        the
        Investors as assignees of Seller) under the Sale Agreements as the Program
        Agent
        or any Managing Agent may from time to time reasonably request, including
        making
        claims to which it may be entitled under any indemnity, reimbursement or
        similar
        provision contained in either Sale Agreement.

       

      (i)  Ownership.
        Seller will (or
        will cause the Originator to) take all necessary action to (i) vest legal
        and
        equitable title to the Receivables, the Related Security and the Collections
        purchased under the Second Tier Sale Agreement irrevocably in Seller, free
        and
        clear of any Adverse Claims other than Adverse Claims contemplated by the
        Transaction Documents, and (ii) establish and maintain, in favor of the Program
        Agent, for the benefit of the Investors, a valid and perfected first priority
        undivided percentage ownership interest (and/or a valid and perfected first
        priority security interest) in all Receivables, Related Security and Collections
        to the full extent contemplated herein, free and clear of any Adverse Claims
        other than Adverse Claims contemplated by the Transaction Documents; including
        in each case the filing of all financing statements or other similar instruments
        or documents necessary under the UCC of all appropriate jurisdictions to
        perfect
        the Program Agent’s (for the benefit of the Investors) interest in such
        Receivables, Related Security and Collections and such other action to perfect
        the interest of the Program Agent for the benefit of the Investors as the
        Program Agent or any Managing Agent may reasonably request.

       

      (j)  Investors’
        Reliance.
        Seller
        acknowledges that the Investors are entering into the transactions contemplated
        by this Agreement in reliance upon Seller’s identity as a legal entity that is
        separate from the Originator or any Affiliate thereof (each, an “El
        Paso
        Entity”).
        Therefore, from
        and after the date of execution and delivery of this Agreement, Seller shall
        take all reasonable steps, including all steps that the Program Agent, any
        Managing Agent or any Investor may from time to time reasonably request,
        to
        maintain Seller’s identity as a separate legal entity and to make it manifest to
        third parties that Seller is an entity with assets and liabilities distinct
        from
        those of any El Paso Entity thereof and not just a division of a El Paso
        Entity.
        Without limiting the generality of the foregoing and in addition to the other
        covenants set forth herein,

       

      (i)  Seller
        shall:

       

      (A)  maintain
        books and
        records and bank accounts separate from those of any other Person;

       

      (B)  maintain
        its assets
        in such a manner that it is not costly or difficult to segregate, identify
        or
        ascertain such assets;

       

      (C)  comply
        with all
        organizational formalities necessary to maintain its separate
        existence;

       

      (D)  hold
        itself out to
        creditors and the public as a legal entity separate and distinct from any
        other
        entity;

       

      (E)  maintain
        separate
        financial statements, showing its assets and liabilities separate and apart
        from
        those of any other Person and not have its assets listed on any financial
        statement of any other Person; except that Seller’s assets may be included in a
        consolidated financial statement of its Affiliate so long as appropriate
        notation is made on such consolidated financial statements to indicate the
        separateness of Seller from such Affiliate and to indicate that Seller’s assets
        and credit are not available to satisfy the debts and other obligations of
        such
        Affiliate or any other Person;

       

      (F)  prepare
        and file
        its own tax returns separate from those of any Person to the extent required
        by
        applicable law, and pay any taxes required to be paid by applicable
        law;

       

      (G)  allocate
        and charge
        fairly and reasonably any common employee or overhead shared with
        Affiliates;

       

      (H)  not
        enter into any
        transaction with Affiliates except on an arm’s-length basis and pursuant to
        written, enforceable agreements;

       

      (I)  conduct
        business in
        its own name, and use separate stationery, invoices and checks;

       

      (J)  not
        commingle its
        assets or funds with those of any other Person; 

       

      (K)  not
        assume,
        guarantee or pay the debts or obligations of any other Person;

       

      (L)  correct
        any known
        misunderstanding as to its separate identity;

       

      (M)  not
        permit any
        Affiliate to guarantee or pay its obligations; 

       

      (N)  not
        make loans or
        advances to any other person; 

       

      (O)  pay
        its liabilities
        and expenses out of its own funds; 

       

      (P)  maintain
        a
        sufficient number of employees in light of its contemplated business purpose
        and
        pay the salaries of its own employees, if any, only from its own
        funds;

       

      (Q)  maintain
        adequate
        capital in light of its contemplated business purpose, transactions and
        liabilities; provided
        that the foregoing
        shall not require the member of Seller to make additional capital contributions
        to Seller; and

       

      (R)  cause
        the managers,
        agents and other representatives of Seller to act at all times with respect
        to
        Seller consistently and in furtherance of the foregoing and in the best
        interests of Seller;

       

      (S)  at
        all times have
        an Independent Manager and ensure that all limited liability company actions
        relating to (x) the selection, maintenance or replacement of the Independent
        Manager, (y) the dissolution or liquidation of Seller or (z) the initiation
        of,
        participation in, acquiescence in or consent to any bankruptcy, insolvency,
        reorganization or similar proceeding involving Seller, are duly authorized
        by
        unanimous consent of Seller’s members and managers, including the Independent
        Manager; and

       

      (T)  take
        such other
        actions as are reasonably necessary on its part to ensure that the facts
        and
        assumptions set forth in the opinion issued by Andrews Kurth LLP, as counsel
        for
        Seller, in connection with the closing of the Original Agreement and relating
        to
        substantive consolidation issues, and in the certificates accompanying such
        opinion, remain true and correct in all material respects at all times,
        and

       

      (ii)  Seller
        shall
        not:

       

      (A)  guarantee
        any
        obligation of any Person, including any Affiliate or become obligated for
        the
        debts of any other Person or hold out its credit as being available to pay
        the
        obligations of any other Person;

       

      (B)  engage,
        directly or
        indirectly, in any business other than as required or permitted to be performed
        under this Agreement and the Second Tier Sale Agreement;

       

      (C)  incur,
        create or
        assume any indebtedness or liabilities other than as expressly permitted
        under
        this Agreement and the Second Tier Sale Agreement;

       

      (D)  make
        or permit to
        remain outstanding any loan or advance to, or own or acquire any stock or
        securities of, any Person other than as permitted under this Agreement and
        the
        Second Tier Sale Agreement;

       

      (E)  to
        the fullest
        extent permitted by law, engage in any dissolution, liquidation, consolidation,
        merger, sale or other transfer of any of its assets outside the ordinary
        course
        of Seller’s business;

       

      (F)  buy
        or hold
        evidence of indebtedness issued by any other Person (other than cash or
        investment-grade securities);

       

      (G)  form,
        acquire or
        hold any subsidiary (whether corporate, partnership, limited liability company
        or other) or own any equity interest in any other entity, except, in each
        case,
        for the Buyer; or

       

      (H)  own
        any asset or
        property other than the Receivables and proceeds thereof, and such other
        property as is contemplated by this Agreement and the Second Tier Sale
        Agreement.

       

      (k)  Collections.
        Such Seller Party
        will cause (i) all Obligors to be directed to remit all Collections to a
        Lock-Box, a Blocked Account, (ii) all proceeds from all Lock-Boxes to be
        deposited into a Blocked Account, (iii) each Blocked Account to be subject
        at
        all times to a Blocked Account Agreement that is in full force and effect
        and
        (iv) each Lock-Box to be subject at all times to a Blocked Account Agreement
        that is in full force and effect. In the event any payments relating to
        Receivables are remitted directly to Seller or any Affiliate of Seller, Seller
        will remit (or will cause all such payments to be remitted) directly to a
        Collection Bank and deposited into a Blocked Account within two (2) Business
        Days, and, at all times prior to such remittance, Seller will itself hold
        or, if
        applicable, will cause such payments to be held in trust for the exclusive
        benefit of the Program Agent, the Managing Agents and the Investors. Seller
        will
        maintain exclusive ownership, dominion and control of each Blocked Account
        and
        Lock-Box and shall not grant the right to take dominion and control of any
        Blocked Account or Lock-Box at a future time or upon the occurrence of a
        future
        event to any Person, in each case except that such action may be taken (i)
        with
        respect to Lock-Boxes subject to a Blocked Account Agreement signed by the
        Collection Bank with the right to take dominion and control of such Lock-Box
        and
        (ii) to the extent otherwise contemplated by this Agreement, a Blocked Account
        Agreement. Seller will not maintain any accounts or lockboxes, other than
        Lock-Boxes, Blocked Accounts and the Collection Account maintained in accordance
        with this Agreement.

       

      (l)  Taxes.
        Such Seller Party
        will file all tax returns and reports required by law to be filed by it and
        will
        promptly pay all taxes and governmental charges at any time owing, except
        any
        such taxes which are not yet delinquent or are being diligently contested
        in
        good faith by appropriate proceedings, for which adequate reserves in accordance
        with GAAP (if any) shall have been set aside on its books and where the failure
        to so file or pay could not reasonably be expected to have a Material Adverse
        Effect. Seller will pay when due any taxes payable in connection with the
        Receivables, exclusive of taxes on or measured by income or gross receipts
        of
        any Conduit Investor, the Program Agent, any Managing Agent or any Committed
        Investor.

       

      (m)  Insurance.
        Seller will
        maintain in effect, or cause to be maintained in effect, at Seller’s own
        expense, such casualty and liability insurance as Seller shall deem appropriate
        in its good faith business judgment. Seller will pay, or cause to be paid,
        the
        premiums therefor. The foregoing requirements shall not be construed to negate,
        reduce or modify, and are in addition to, Seller’s obligations
        hereunder.

       

      (n)  Payment
        to
        Originator.
        With respect to
        any Receivable purchased by Seller from Finance LLC, such sale shall be effected
        under, and in strict compliance with the terms of, the Second Tier Sale
        Agreement, including the terms relating to the method of payment and amount
        and
        timing of payments to be made to Finance LLC in respect of the purchase price
        for such Receivable.

       

      (o)  Operation
        of
        Pipelines.
        In the case of
        Servicer, it will (i) remain an open access transporter, to retain its blanket
        certificate under Part 284 of Title 18 of the Code of Federal Regulations,
        and
        (ii) operate its currently constituted transmission pipelines, as they may
        be
        expanded from time to time, in an efficient and business-like manner or to
        maintain all necessary FERC and other governmental authorizations and approvals
        necessary to operate its currently constituted transmission pipeline business,
        as it may be expanded from time to time.

       

      Section
        7.2.  Negative
        Covenants of Seller Parties.
        Until the date on
        which the Aggregate Unpaids have been indefeasibly paid in full and this
        Agreement terminates in accordance with its terms, each Seller Party hereby
        covenants, as to itself, that:

       

      (a)  Name
        Change,
        Offices and Records.
        Seller will not
        (and will not permit the Originator to) (i) make any change to its name,
        identity or corporate structure (within the meaning of the applicable enactment
        of the UCC) or relocate its chief executive office or any office where Records
        are kept unless, at least forty-five (45) days prior to the effective date
        of
        any such change or relocation Seller notifies the Program Agent thereof and
        delivers to the Program Agent all financing statements, instruments, legal
        opinions and other documents reasonably requested by the Program Agent or
        any
        Managing Agent may reasonably request in connection with such change or
        relocation and has taken all other steps to ensure that the Program Agent,
        for
        the benefit of itself and the Investors, continues to have a first priority,
        perfected ownership or security interest in the Receivables, the Related
        Security related thereto and any Collections thereon, or (ii) change its
        jurisdiction of incorporation or formation (within the meaning of the applicable
        enactment of the UCC) unless the Program Agent shall have received from Seller,
        prior to such change, (A) those items described in clause (i) hereof, and
        (B) if
        the Program Agent, any Managing Agent or any Investor shall so request, an
        opinion of counsel, in form and substance reasonably satisfactory to such
        Person, as to such organization and Seller’s or the Originator’s, as applicable,
        valid existence and good standing and the perfection and priority of the
        Program
        Agent’s ownership or security interest in the Receivables, the Related Security
        and Collections. In accordance with Section 13.12(b),
        the provisions of
        this Agreement shall apply to any successors or assigns.

       

      (b)  Change
        in
        Payment Instructions to Obligors; Accounts.
        Such Seller Party
        will not add or terminate any bank as a Collection Bank, or make any change
        in
        the instructions to Obligors regarding payments to be made to any Blocked
        Account or Lock-Box, unless the Program Agent shall have received, at least
        ten
        (10) days before the proposed effective date therefor, (i) written notice
        of
        such addition, termination or change, and (ii) with respect to the addition
        of a
        Collection Bank, a Blocked Account or Lock-Box, an executed Blocked Account
        Agreement with respect to the new Blocked Account or Lock-Box; provided
        that Servicer may
        make changes in instructions to Obligors regarding payments otherwise restricted
        above if such new instructions require such Obligor to make payments to another
        existing Blocked Account or Lock-Box. A revised Exhibit IV
        shall be delivered
        by Seller to the Program Agent in connection with any addition or termination
        of
        any Blocked Account or Lock-Box in accordance with the provisions of this
        section and Exhibit IV
        shall be deemed to
        be amended hereby upon such delivery.

       

      (c)  Modifications
        to
        Credit and Collection Policy.
        Subject to
Section 7.1(b)(i),
        such Seller
        Party will not, and will not permit the Originator to, make any change to
        the
        Credit and Collection Policy that could materially adversely affect the
        collectibility of the Receivables (other than any portion thereof constituting
        an Additional Amount) or the credit quality of any newly created Receivables
        (other than Additional Amounts).

       

      (d)  Sales,
        Liens.
        Seller will not
        sell, assign (by operation of law or otherwise) or otherwise dispose of,
        or
        grant any option with respect to, or create or suffer to exist any Adverse
        Claim
        upon (including the filing of any financing statement) or with respect to,
        any
        Receivable, Related Security or Collections, or upon or with respect to any
        Contract under which any Receivable arises, or any Blocked Account or Lock-Box,
        or assign any right to receive income with respect thereto (other than, in
        each
        case, as contemplated by the Transaction Documents), and Seller will defend
        the
        right, title and interest of the Program Agent and the Investors in, to and
        under any of the foregoing property, against all claims of third parties
        claiming through or under Seller or the Originator.

       

      (e)  Termination
        Date
        Determination; Modification of Sale Agreements.
        Seller will not
        (i) designate the Termination Date (as defined in the Second Tier Sale
        Agreement), (ii) send any written notice to Finance LLC in respect thereof,
        or
        (iii) consent to Finance LLC designating the Termination Date (as defined
        in the
        First Tier Sale Agreement) or sending any written notice to the Originator
        in
        respect thereof, in each case without the prior written consent of the Program
        Agent and each Managing Agent, except with respect to the occurrence of such
        Termination Date arising pursuant to Section 5.1(d)
        of either Sale
        Agreement. No Seller Party will amend or otherwise modify or terminate any
        Sale
        Agreement without the written consent of the Program Agent and each Managing
        Agent, except with respect to a termination upon the occurrence of a Termination
        Date arising pursuant to Section 5.1(d)
        of either Sale
        Agreement.

       

      (f)  Mergers,
        Acquisitions etc.
        Seller will not
        merge into or consolidate with any other Person or permit any other Person
        to
        merge with or into or consolidate with it, or purchase, lease or otherwise
        acquire (in one transaction or a series of transactions) all or substantially
        all of the assets of any other Person (whether directly by purchase, lease
        or
        other acquisition of all or substantially all of the assets of such Person
        or
        indirectly by purchase or other acquisition of all or substantially all of
        the
        capital stock of such other Person) other than acquisitions of Receivables
        pursuant to the Second Tier Sale Agreement.

       

      (g)  Modification
        of
        Reporting Procedures.
        Seller shall not,
        without the prior consent of the Program Agent (such consent not to be
        unreasonably withheld or delayed), permit any amendment which would materially
        change the calculation methods used to generate the reports delivered in
        accordance with Section 8.5
        hereof.

       

      ARTICLE
        VIII

       

      ADMINISTRATION
        AND
        COLLECTION

       

      Section
        8.1.  Designation
        of
        Servicer.

       

      (a)  The
        servicing,
        administration and collection of the Receivables shall be conducted by such
        Person or Persons (the “Servicer”
and,
        if multiple
        Persons, collectively, the “Servicer”)
        so designated
        from time to time in accordance with this Section 8.1.
        Tennessee Gas
        Pipeline Company is hereby designated as, and hereby agrees to perform the
        duties and obligations of, Servicer pursuant to the terms of this Agreement.
        The
        Program Agent (with the consent or direction of the Required Committed
        Investors) may designate as Servicer any Person to succeed Tennessee Gas
        Pipeline Company or any successor Servicer at any time after the occurrence
        of
        an Amortization Event. Without the prior written consent of the Program Agent,
        Tennessee Gas Pipeline Company (nor any of its delagatees) shall not be
        permitted to delegate any of its duties or responsibilities as Servicer to
        any
        Person other than El Paso Corporation pursuant to Section 8.6
        hereof.

       

      (b)  Notwithstanding
        any
        permitted delegation by Tennessee Gas Pipeline Company pursuant to Section 8.1(a),
        (a) Tennessee Gas
        Pipeline Company shall be and remain primarily liable to the Program Agent,
        the
        Managing Agents and the Investors for the full and prompt performance of
        all
        duties and responsibilities of Servicer hereunder and (b) the Program Agent,
        the
        Managing Agents and the Investors shall be entitled to deal exclusively with
        Tennessee Gas Pipeline Company in matters relating to the discharge by Servicer
        of its duties and responsibilities hereunder. The Program Agent, the Managing
        Agents and the Investors shall not be required to give notice, demand or
        other
        communication to any Person other than Tennessee Gas Pipeline Company in
        order
        for communication to Servicer and any sub-servicers or other delegate with
        respect thereto to be accomplished. Tennessee Gas Pipeline Company at all
        times
        that it is Servicer, shall be responsible for providing any sub-servicer
        or
        other delegate of Servicer with any notice given to Servicer under this
        Agreement.

       

      Section
        8.2.  Duties
        of
        Servicer.

       

      (a)  Servicer
        shall take
        or cause to be taken all such actions as may be necessary or advisable to
        collect each Receivable from time to time, all in accordance with applicable
        laws, rules and regulations, with reasonable care and diligence, and in
        accordance with its collection practices.

       

      (b)  Servicer
        will
        instruct all Obligors to pay all Collections directly to a Lock-Box or a
        Blocked
        Account. Servicer shall effect a Blocked Account Agreement substantially
        in the
        form of Exhibit VI
        with each bank at
        which a Blocked Account or Lock-Box is held at any time and with the bank
        at
        which the Collection Account is held. In the case of any remittances received
        in
        any Lock-Box or Blocked Account that shall have been identified, to the
        satisfaction of Servicer, as not constituting Collections or other proceeds
        of
        the Receivables or the Related Security, Servicer shall promptly remit such
        items to the Person identified to it as being the owner of such remittances.
        From and after the date the Program Agent delivers to any Collection Bank
        a
        Collection Notice pursuant to Section 8.3,
        the Program Agent
        may request that Servicer, and Servicer thereupon promptly shall instruct
        all
        Obligors with respect to the Receivables, to remit all payments thereon to
        a
        depositary account specified by the Program Agent and, at all times thereafter,
        Seller and Servicer shall not deposit or otherwise credit, and shall not
        permit
        any other Person to deposit or otherwise credit to such new depositary account
        any cash or payment item other than Collections.

       

      (c)  Servicer
        shall
        administer the Collections in accordance with the procedures described herein
        and in Article II.
        Servicer shall
        set aside and hold in trust for the account of Seller and the Investors their
        respective shares of the Collections in accordance with Article II.
        Servicer shall,
        upon the request of the Program Agent (with the consent or at the direction
        of
        the Required Committed Investors), segregate, in a manner acceptable to the
        Program Agent and the Required Committed Investors, all cash, checks and
        other
        instruments received by it from time to time constituting Collections from
        the
        general funds of Servicer or Seller prior to the remittance thereof in
        accordance with Article II.

       

      (d)  Servicer
        may, in
        accordance with its collection practices, extend the maturity of any Receivable
        or adjust the Net Outstanding Balance of any Receivable as Servicer determines
        to be appropriate to maximize Collections thereof; provided
        that such
        extension or adjustment shall not alter the status of such Receivable as
        a
        Delinquent Receivable, Defaulted Receivable or limit the rights of the Program
        Agent, the Managing Agents or the Investors under this Agreement.

       

      (e)  Servicer
        shall hold
        in trust for Seller and the Investors all Records that (i) evidence or relate
        to
        the Receivables, the related Contracts and Related Security or (ii) are
        otherwise necessary or desirable to collect the Receivables and shall, if
        an
        Amortization Event exists, as soon as reasonably practicable upon demand
        of the
        Program Agent (with the consent or at the direction of the Required Committed
        Investors), deliver or make available to the Program Agent all such Records,
        at
        a place selected by the Program Agent. Servicer shall, as soon as practicable
        following receipt thereof turn over to Seller any cash collections or other
        cash
        proceeds received with respect to Indebtedness not constituting
        Receivables.

       

      (f)  Any
        payment by an
        Obligor in respect of any indebtedness owed by it to the Originator or Seller
        shall, except as otherwise specified by such Obligor or otherwise required
        by
        contract or law and unless otherwise instructed by the Program Agent, be
        applied
        as a Collection of any Receivable of such Obligor (starting with the oldest
        such
        Receivable) to the extent of any amounts then due and payable thereunder
        before
        being applied to any other receivable or other obligation of such
        Obligor.

       

      Section
        8.3.  Collection
        Notices.
        The Program Agent
        (acting with the consent or at the direction of the Required Committed
        Investors) is authorized at any time when an Amortization Event exists or
        a
        Collection Notice Event has occurred and is continuing, to
        date and to
        deliver to the Collection Banks the Collection Notices and thereafter to
        make
        transfers and payments from Blocked Accounts and the Collection Account in
        lieu
        of Servicer in accordance with Article II of this Agreement. In making any
        such transfers and payments, the Program Agent shall be entitled to rely
        on the
        periodic reports provided by Servicer hereunder and upon notices from any
        Managing Agent and any Investor with respect to amounts payable to such Managing
        Agent (or members of its Investor Group) or to such Investor and upon the
        Program Agent’s records with respect to payments to be made to the Program
        Agent, any Managing Agent and any Investor and shall be fully protected in
        acting thereon; provided
        that if the
        Program Agent determines in good faith that it does not have sufficient
        information to determine amounts transferable or payable from Blocked Accounts
        and the Collection Account hereunder or has conflicting information with
        respect
        thereto, the Program Agent shall be entitled, but shall not be required,
        to
        transfer such amounts to, or to retain such amounts in, the Collection Account
        pending its receipt of further information satisfactory to it. Seller hereby
        transfers to the Program Agent for the benefit of the Investors, effective
        when
        the Program Agent delivers any such notice, the exclusive ownership and control
        of the applicable Blocked Account and control of the applicable Lock-Box.
        In
        case any authorized signatory of Seller whose signature appears on a Blocked
        Account Agreement shall cease to have such authority before the delivery
        of such
        notice, such Collection Notice shall nevertheless be valid as if such authority
        had remained in force. Seller hereby authorizes the Program Agent, and agrees
        that the Program Agent shall be entitled, when an Amortization Event exists
        or a
        Collection Notice Event has occurred and is continuing, to (A) endorse Seller’s
        name on checks and other instruments representing Collections, (B) enforce
        the
        Receivables, the related Contracts and the Related Security and (C) take
        such
        action as shall be necessary or desirable to cause all cash, checks and other
        instruments constituting Collections of Receivables to come into the possession
        of the Program Agent rather than Seller.

       

      Section
        8.4.  Responsibilities
        of Seller.
        Anything herein
        to the contrary notwithstanding, the exercise by the Program Agent, the Managing
        Agents and the Investors of their rights hereunder shall not release Servicer,
        the Originator or Seller from any of their duties or obligations with respect
        to
        any Receivables or under the related Contracts. None of the Program Agent,
        the
        Managing Agents or the Investors shall have any obligation or liability with
        respect to any Receivables or related Contracts, nor shall any of them be
        obligated to perform the obligations of Seller.

       

      Section
        8.5.  Reports.
        Servicer shall
        prepare and deliver to each Managing Agent and the Program Agent (a) a Monthly
        Report with respect to each Monthly Period not later than 3:00 p.m. (New
        York
        time) on the related Monthly Report Date, (b) a Mid-Month Report with respect
        to
        each Monthly Period not later than 3:00 p.m. (New York time) on the related
        Mid-Month Report Date, (c) a Daily Report with respect to (i) the first Daily
        Settlement Date for each Monthly Period, and (ii) each Daily Settlement Date
        on
        which funds were remitted to Seller pursuant to clause (ii)(B)
        of Section 2.3,
Section 2.4(a)
        or Section 2.4(b)
        and the
        immediately following Daily Settlement Date, in each case not later than
        1:00
        p.m. (New York time) on the Business Day immediately following such Daily
        Settlement Date, and (iv) at such times as any Managing Agent shall reasonably
        request, an aging of Receivables. Each Monthly Report, Mid-Month Report and
        Daily Report shall be certified as being true and correct in all material
        respects by a Responsible Officer of Servicer (or, with respect to amounts
        identified therein as estimates, as being estimated reasonably and based
        on
        Servicer’s records and assumptions believed in good faith by such Responsible
        Officer).

       

      Section
        8.6.  Computation
        Agent.

       

      (a)  El
        Paso Corporation
        is hereby designated as, and, by its acceptance of this Agreement set forth
        below, hereby agrees to perform the duties and obligations of, the Computation
        Agent pursuant to the terms of this Agreement. The Program Agent (with the
        consent or direction of the Required Committed Investors) may designate as
        Computation Agent any Person to succeed El Paso Corporation or any successor
        at
        any time after the occurrence of an Amortization Event.

       

      (b)  The
        Computation
        Agent shall aggregate and prepare certain portions of the reports to be provided
        by the Servicer pursuant to Section 8.5
        (as more fully
        specified in the applicable form of report) and shall deliver such portions
        to
        each Managing Agent and the Program Agent not later than the time at which
        such
        report is due as provided in such Section.

       

      Section
        8.7.  Servicer
        Fees.
        Servicer shall be
        entitled to receive a fee (the “Servicer
        Fee”)
        equal to 1.00%
        per annum multiplied by the lesser of (i) the average daily aggregate
        Outstanding Balance of all Eligible Receivables and (ii) the average daily
        Program Limit, payable in arrears on each Monthly Settlement Date for the
        immediately preceding Monthly Period out of Collections available for such
        purpose pursuant to Article II
        on such Monthly
        Settlement Date. The Investors’ share of the Servicer Fee shall be equal to the
        Servicer Fee Rate multiplied by the average daily Aggregate Capital of the
        Investor Interests payable as provided above. Upon the appointment of a
        successor servicer under this Agreement which is not an Affiliate of Servicer,
        the Servicer Fee shall be such amount as the Managing Agents, with the consent
        of the Required Committed Investors, shall reasonably determine. Notwithstanding
        anything herein to the contrary, the Servicer Fee shall be payable only from
        Collections pursuant to, and subject to the priority of payments set forth
        in,
Article II.
        To the extent
        such Collections are not sufficient to pay the Servicer Fee in full, none
        of
        Seller, the Program Agent or any Managing Agent or Investor shall have any
        liability for the deficiency. The Computation Agent shall be entitled to
        receive
        a fee and reimbursement of expenses from Servicer in such amounts and payable
        at
        such times as the Computation Agent and Servicer may agree upon from time
        to
        time. In no event shall Seller, the Program Agent or any Managing Agent or
        Investor shall have any liability for payment of any fees or expenses of
        the
        Computation Agent.

       

      ARTICLE
        IX

       

      AMORTIZATION
        EVENTS

       

      Section
        9.1.  Amortization
        Events.
        The occurrence of
        any one or more of the following events shall constitute an Amortization
        Event:

       

      (a)  Any
        Seller Party
        shall fail (i) to make any payment or deposit required hereunder when due
        and
        such failure continues for two Business Days, (ii) in the case of Servicer,
        to
        deliver any report required to be delivered pursuant to Section 8.5 when
        due and such failure, if it is caused by a Force Majeure Event, continues
        for
        two Business Days, (iii) to perform or observe any term, covenant or agreement
        contained in Section 7.1(b),
7.1(c),
7.1(h)-(k)
        and (n),
Section 7.2,
Section 9.1
        (other than as
        referred to in clause (i)
        or (ii)
        of this
subsection (a)
        or Section 9.1(d))
        and with respect
        to Servicer only, Section 8.2(b),
        and such failure
        shall continue for five consecutive Business Days after the earlier of receipt
        of written notice thereof from the Program Agent or any Managing Agent, or
        a
        Seller Party’s Responsible Officer’s actual knowledge thereof or (iii) to
        perform or observe any term, covenant or agreement hereunder (other than
        as
        referred to in clause (i)
        or (ii)
        of this
subsection (a)
        or Section 9.1(d))
        and such failure
        shall continue for twenty consecutive days after the earlier of receipt of
        written notice thereof from the Program Agent or any Managing Agent, or a
        Seller
        Party’s Responsible Officer’s actual knowledge thereof.

       

      (b)  Any
        representation,
        warranty, certification or statement made by any Seller Party in this Agreement,
        any other Transaction Document or in any other document delivered pursuant
        hereto or thereto shall prove to have been (i) with respect to any
        representations, warranties, certifications or statements which contain a
        materiality qualifier, incorrect in any respect when made or deemed made
        and
        (ii) with respect to any representations, warranties, certifications or
        statements which do not contain a materiality qualifier, incorrect in any
        material respect when made or deemed made; provided
        that an
        Amortization Event shall not occur in connection with a breach (including
        with
        respect to delivery of reports or other information) of any of the
        representations in paragraphs (g), (i), (j), (r), (s), (t), (u) or (w) of
        Section 5.1
        with respect to
        any Receivable or Related Security if either (i) the aggregate of the Investor
        Interests does not exceed 100% after a recalculation of the Investor Interests
        excluding such Receivable and all Receivables, if any, related to such Related
        Security from the Net Receivable Pool Balance or (ii) the aggregate of the
        Investor Interests does not exceed 100% after a recalculation of the Investor
        Interests excluding such Receivable and all Receivables, if any, related
        to such
        Related Security from the Net Receivable Pool Balance and Seller has made
        the
        payment required by, and in accordance with, Section 2.8.

       

      (c)  Failure
        of Seller
        to pay any Indebtedness when due, giving effect to any applicable grace
        periods.

       

      (d)  Any
        Seller Party or
        the Originator (i) shall generally not pay its debts as such debts become
        due or
        shall admit in writing its inability to pay its debts generally or shall
        make a
        general assignment for the benefit of creditors; or (ii) any proceeding shall
        be
        instituted by or against any such Person seeking to adjudicate it bankrupt
        or
        insolvent, or seeking liquidation, winding up, reorganization, arrangement,
        adjustment, protection, relief or composition of it or its debts under any
        law
        relating to bankruptcy, insolvency or reorganization or relief of debtors,
        or
        seeking the entry of an order for relief or the appointment of a receiver,
        trustee or other similar official for it or any substantial part of its property
        or (iii) any such Person shall take any corporate or limited liability company
        action to authorize any of the actions set forth in clause (ii) above in
        this
        subsection (d).

       

      (e)  As
        at the end of
        any Monthly Period, (i) the average of the Dilution Ratios for such Monthly
        Period and the two preceding Monthly Periods shall exceed 0.50% (ii) the
        average
        of the Delinquency Ratios for such Monthly Period and the two preceding Monthly
        Periods shall exceed 6.75%, or (iii) the average of the Loss Ratios for such
        Monthly Period and the two preceding Monthly Periods shall exceed
        4.00%.

       

      (f)  A
        Change of Control
        shall occur.

       

      (g)  A
        Material Adverse
        Effect shall occur.

       

      (h)  One
        or more
        judgments, decrees, arbitration or binding mediation award(s) and/or
        settlement(s) for the payment of money in excess of $100,000 in the aggregate
        shall be entered against Seller, and either (i) within thirty (30) days
        from the later of (A) the entry of any such judgment or decree or the date
        of
        any such award or settlement (as applicable) and (B) the date any payment
        is required to be made on or with respect to any such judgment, decree, award
        or
        settlement pursuant to the terms thereof, the same shall not have been paid,
        discharged or vacated, or in the case of a judgment, decree or award, stayed
        pending appeal, or shall not have been discharged or vacated within thirty
        (30)
        days from the entry of a final order of affirmance on appeal or
        (ii) enforcement proceedings shall be commenced by any creditor on any such
        judgment, decree, award or settlement.

       

      (i)  (i)
        The
“Termination Date” under and as defined in either Sale Agreement shall occur
        under such Sale Agreement, (ii) the Originator shall for any reason cease
        to
        transfer, or cease to have the legal capacity to transfer, or otherwise be
        incapable of transferring Receivables to Finance LLC under the First Tier
        Sale
        Agreement, or (iii) Finance LLC shall for any reason cease to transfer, or
        cease
        to have the legal capacity to transfer, or otherwise be incapable of
        transferring Receivables to Seller under the Second Tier Sale
        Agreement.

       

      (j)  This
        Agreement
        shall terminate in whole or in part (except in accordance with its terms),
        or
        shall cease to be effective or to be the legally valid, binding and enforceable
        obligation of Seller, or the Program Agent for the benefit of the Investors
        shall cease to have a valid and perfected first priority security interest
        in
        the Receivables, the Related Security and the Collections with respect thereto
        and the Lock-Boxes, Blocked Accounts and all agreements related
        thereto.

       

      (k)  With
        respect to any
        day, the aggregate of the Investor Interests exceeds 100%; provided
        that such event
        shall not constitute an Amortization Event if such excess shall have been
        cured
        by a Special Adjustment Payment made in accordance with Section 2.2,
        if applicable, or
        otherwise by an increase in the Net Receivable Pool Balance or the Collection
        Account Amount or a reduction in the Aggregate Capital not later than the
        next
        following Business Day (or, if such day is not Business Day, by not later
        than
        the second following Business Day).

       

      Section
        9.2.  Remedies.
        Upon the
        occurrence and during the continuation of an Amortization Event, the Program
        Agent may, or upon the direction of the Required Committed Investors shall,
        with
        written notice to Seller and Servicer, take any of the following actions:
        (i)
        replace the Person then acting as Servicer, (ii) declare the Amortization
        Date
        to have occurred, whereupon the Amortization Date shall forthwith occur,
        without
        demand, protest or further notice of any kind, all of which are hereby expressly
        waived by each Seller Party; provided
        that upon the
        occurrence of an Amortization Event described in Section 9.1(d),
        or of an actual
        or deemed entry of an order for relief with respect to the Originator or
        any
        Seller Party under the Federal Bankruptcy Code, the Amortization Date shall
        automatically occur, without demand, protest or any notice of any kind, all
        of
        which are hereby expressly waived by each Seller Party, (iii) to the fullest
        extent permitted by applicable law, declare that the Default Fee shall accrue
        with respect to any of the Aggregate Unpaids (other than amounts on which
        Yield
        is accruing at the default rate pursuant to Section 9.3)
        outstanding at
        such time, and (iv) deliver the Collection Notices to the Collection Banks.
        In
        addition, at any time after the occurrence and during the continuance of
        an
        Amortization Event, the Program Agent may, (or, at the direction of the Required
        Committed Investors, shall) or the Program Agent may (or, at the direction
        of
        the Required Committed Investors, shall) direct Seller or Servicer to, notify
        the Obligors of Receivables, at Seller’s expense, of the ownership or security
        interests of the Investors under this Agreement and may (or, at the direction
        of
        the Required Committed Investors, shall) also direct that payments of all
        amounts due or that become due under any or all Receivables be made directly
        to
        the Program Agent or its designee. Seller or Servicer (as applicable) shall,
        at
        any Investor’s request, withhold the identity of such Investor in any such
        notification. The
        aforementioned
        rights and remedies shall be without limitation, and shall be in addition
        to all
        other rights and remedies of the Program Agent, the Managing Agents and the
        Investors otherwise available under any other provision of this Agreement,
        by
        operation of law, at equity or otherwise, all of which are hereby expressly
        preserved, including all rights and remedies provided under the UCC, all
        of
        which rights shall be cumulative.

       

      Section
        9.3.  Default
        Yield.
        In addition to
        the rights set forth above, at any time upon or after the occurrence of an
        Amortization Event, any Managing Agent may, in its sole discretion with notice
        to the Seller, declare that all Yield with respect to each Investor Interest
        of
        the Investors in its Investor Group shall accrue at a rate per annum equal
        to
        2.0% plus the Prime Rate.

       

      ARTICLE
        X

       

      INDEMNIFICATION

       

      Section
        10.1.  Indemnities
        by
        the Seller Parties.
        Without limiting
        any other rights that the Program Agent, any Managing Agent or any Investor
        may
        have hereunder or under applicable law, (A) Seller hereby agrees to indemnify
        (and pay upon demand to) the Program Agent, each Managing Agent and each
        Investor and their respective assigns and the officers, directors, agents
        and
        employees of the Program Agent, each Managing Agent and each Investor and
        their
        respective assigns (each an “Indemnified
        Party”)
        from and against
        any and all damages, losses, claims, taxes, liabilities, costs, expenses
        and for
        all other amounts payable, including reasonable attorneys’ fees and
        disbursements (all of the foregoing being collectively referred to as
“Indemnified
        Amounts”)
        awarded against
        or incurred by any of them arising out of or as a result of this Agreement
        or
        the acquisition, either directly or indirectly, by an Investor of an interest
        in
        the Receivables, and (B) Servicer hereby agrees to indemnify (and pay upon
        demand to) each Indemnified Party for Indemnified Amounts awarded against
        or
        incurred by any of them arising out of Servicer’s activities as Servicer
        hereunder or under any other Transaction Documents excluding, however, in
        all of
        the foregoing instances under the preceding clauses (A) and (B):

       

      (i)  Indemnified
        Amounts
        to the extent that such Indemnified Amounts resulted from gross negligence
        or
        willful misconduct on the part of the Indemnified Party seeking indemnification,
        it being the intention of Seller and servicer to indemnify such indemnified
        party against the consequences of their own negligence;

       

      (ii)  Indemnified
        Amounts
        to the extent the same includes losses in respect of Receivables that are
        solely
        due to the credit risk of the Obligor and for which reimbursement would
        constitute recourse to Seller for uncollectible Receivables;

       

      (iii)  taxes
        imposed by
        the jurisdiction in which such Indemnified Party’s principal executive office is
        located, on or measured by the overall net income of such Indemnified Party
        to
        the extent that the computation of such taxes is consistent with the
        characterization for income tax purposes of the acquisition by the Investors
        of
        Investor Interests as a loan or loans by the Investors to Seller secured
        by the
        Receivables, the Related Security, the Blocked Accounts and the Collections;
        or

       

      (iv)  Indemnified
        Amounts
        relating to and affecting only Additional Amounts.

       

      provided
        that nothing
        contained in this sentence shall limit the liability of any Seller Party
        or
        limit the recourse of the Investors to any Seller Party for amounts otherwise
        specifically provided to be paid by such Seller Party under the terms of
        this
        Agreement. Without limiting the generality of the foregoing indemnification
        (and, in the case of the following clauses (D) through (N), in each case
        without
        limiting Seller’s obligations under the following clauses (A), (B) or (C)),
        Seller shall indemnify the Indemnified Parties for Indemnified Amounts relating
        to or resulting from:

       

      (A)  any
        representation
        or warranty made by or on behalf of any Seller Party, the Originator (or
        any
        officers of any such Person) under or in connection with this Agreement,
        any
        other Transaction Document or any other information or report delivered by
        such
        Person pursuant hereto or thereto, which shall have been false or incorrect
        when
        made or deemed made;

       

      (B)  the
        failure by
        Seller or Servicer to comply with any applicable law, rule or regulation
        with
        respect to any Receivable or Contract related thereto, or the nonconformity
        of
        any Receivable or Contract included therein with any such applicable law,
        rule
        or regulation or any failure of the Originator to keep or perform any of
        its
        obligations, express or implied, with respect to any Contract;

       

      (C)  any
        failure of
        Seller or Servicer to perform its duties, covenants or other obligations
        in
        accordance with the provisions of this Agreement or any other Transaction
        Document;

       

      (D)  any
        products
        liability, environmental, personal injury or damage suit, or other similar
        claim
        arising out of or in connection with merchandise, insurance or services that
        are
        the subject of any Contract or any Receivable;

       

      (E)  any
        dispute, claim,
        offset or defense (other than discharge in bankruptcy of the Obligor) of
        the
        Obligor to the payment of any Receivable other than any portion thereof
        constituting an Additional Amount (including a defense based on such Receivable
        or the related Contract not being a legal, valid and binding obligation of
        such
        Obligor enforceable against it in accordance with its terms or based on such
        Obligor being immune from claims on the grounds on sovereign immunity or
        otherwise immune or not subject to legal action, suit or proceeding), or
        any
        other claim resulting from the sale of the merchandise or service related
        to
        such Receivable or the furnishing or failure to furnish such merchandise
        or
        services;

       

      (F)  the
        commingling by
        or on behalf of any Seller Party or any of its Affiliates of Collections
        of
        Receivables at any time with other funds;

       

      (G)  any
        investigation,
        litigation or proceeding related to or arising from this Agreement or any
        other
        Transaction Document, the transactions contemplated hereby, the use of the
        proceeds of an Incremental Purchase or a Reinvestment, the ownership of the
        Investor Interests or any other investigation, litigation or proceeding relating
        to Seller, Servicer or the Originator in which any Indemnified Party becomes
        involved as a result of any of the transactions contemplated
        hereby;

       

      (H)  any
        failure of
        Seller to acquire and maintain legal and equitable title to, and ownership
        of
        any Receivable and the Related Security and Collections with respect thereto
        from Finance LLC, free and clear of any Adverse Claim (other than as created
        hereunder); or any failure of Seller to give reasonably equivalent value
        to
        Finance LLC under the Second Tier Sale Agreement in consideration of the
        transfer by Finance LLC of any Receivable, or any attempt by the Originator,
        Finance LLC or Seller to void such transfer under statutory provisions or
        common
        law or equitable action;

       

      (I)  any
        failure of
        Finance LLC to acquire and maintain legal and equitable title to, and ownership
        of any Receivable and the Related Security and Collections with respect thereto
        from the Originator, free and clear of any Adverse Claim (other than as created
        hereunder); or any failure of Finance LLC to give reasonably equivalent value
        to
        the Originator under the First Tier Sale Agreement in consideration of the
        transfer by the Originator of any Receivable, or any attempt by the Originator,
        Finance LLC or Seller to void such transfer under statutory provisions or
        common
        law or equitable action;

       

      (J)  any
        failure to vest
        in the Program Agent for the benefit of the Investors, or to transfer to
        the
        Program Agent for the benefit of the Investors, legal and equitable title
        to,
        and ownership of, a first priority perfected undivided percentage ownership
        interest (to the extent of the Investor Interests contemplated hereunder)
        or
        security interest in the Receivables, the Related Security and the Collections,
        free and clear of any Adverse Claim (except as created by the Transaction
        Documents);

       

      (K)  the
        failure to have
        filed, or any delay in filing, financing statements or other similar instruments
        or documents under the UCC of any applicable jurisdiction or other applicable
        laws with respect to any Receivable, the Related Security and Collections
        with
        respect thereto, and the proceeds of any thereof, whether at the time of
        any
        Incremental Purchase or Reinvestment or at any subsequent time;

       

      (L)  any
        avoidance or
        attempt by the Originator, Finance LLC or Seller to void any Incremental
        Purchase or Reinvestment hereunder under statutory provisions or common law
        or
        equitable action;

       

      (M)  the
        failure by such
        Seller Party to pay when due any taxes, including sales, excise or personal
        property taxes; and

       

      (N)  the
        failure of any
        Receivable included in the calculation of the Net Receivable Pool Balance
        as an
        Eligible Receivable to be an Eligible Receivable at the time so
        included.

       

      Section
        10.2.  Increased
        Cost
        and Reduced Return.
        If any Affected
        Person shall be charged any fee, expense or increased cost on account of
        the
        adoption after the date hereof of any applicable law, rule or regulation
        (including any applicable law, rule or regulation regarding capital adequacy)
        or
        any change therein after the date hereof, or any change after the date hereof
        in
        the interpretation or administration thereof by any governmental authority,
        central bank or comparable agency charged with the interpretation or
        administration thereof, or compliance with any request or directive (whether
        or
        not having the force of law) of any such authority, central bank or comparable
        agency (a “Regulatory
        Change”):
        (i) that
        subjects any Affected Person to any charge or withholding on or with respect
        to
        any Support Facility or an Affected Person’s obligations under a Support
        Facility, or on or with respect to the Receivables, or changes the basis
        of
        taxation of payments to any Affected Person of any amounts payable under
        any
        Support Facility (except for changes in the rate of tax on the overall net
        income of an Affected Person or taxes excluded by Section 10.1)
        or (ii) that
        imposes, modifies or deems applicable any reserve, capital maintenance
        requirement, assessment, insurance charge, special deposit or similar
        requirement against assets of, deposits with or for the account of an Affected
        Person, or credit extended by an Affected Person pursuant to a Support Facility,
        including any reserve requirement which is imposed in respect of Eurocurrency
        liabilities as defined in Regulation D of the Board of Governors of the Federal
        Reserve System or (iii) that imposes any other condition the result of which
        is
        to increase the cost to an Affected Person of performing its obligations
        under a
        Support Facility, or to reduce the rate of return on an Affected Person’s
        capital as a consequence of its obligations under a Support Facility, or
        to
        reduce the amount of any sum received or receivable by an Affected Person
        under
        a Support Facility or to require any payment calculated by reference to the
        amount of interests or loans held or interest received by it, and the result
        of
        any of the foregoing is to increase the actual cost to such Affected Person,
        of
        making, continuing or maintaining Investor Interests or to reduce any amount
        receivable hereunder in respect thereof, then, in any such case, Seller shall
        promptly pay upon demand by the applicable Managing Agent, for the benefit
        of
        the relevant Affected Person, such amounts charged to such Affected Person
        or
        such amounts to otherwise compensate such Affected Person for such increased
        cost or such reduction.

       

      Section
        10.3.  Mitigation
        of
        Costs.

       

      (a)  Any
        Affected Person
        claiming reimbursement from Seller under Section 10.2
        hereof shall use
        reasonable efforts (including, if requested by Seller, reasonable efforts
        to
        designate a different applicable office of such Affected Person) to mitigate
        the
        amount of such losses, costs, expenses and liabilities, if such efforts can
        be
        made and such mitigation can be accomplished without such Affected Person
        suffering (i) any economic disadvantage for which such Affected Person does
        not
        receive full indemnity from Seller under this Agreement or (ii) any legal
        or
        regulatory disadvantage.

       

      (b)  The
        agreements
        contained in this Section 10.3
        shall survive the
        termination of this Agreement and the payment of the Aggregate Unpaids;
provided
        that in no event
        shall Seller be obligated to reimburse or compensate any Investor for amounts
        contemplated by this Section 10.3
        for any period
        before the date that is 180 days before the date upon which such Investor
        requests in writing such reimbursement or compensation from Seller.

       

      Section
        10.4.  Other
        Costs and
        Expenses.
        Seller shall pay
        to the Program Agent and each Managing Agent on the Monthly Settlement Date
        following written demand or, if an Amortization Event shall have occurred
        and is
        continuing, within five Business Days after written demand therefor, all
        reasonable costs and out-of-pocket expenses in connection with the preparation,
        negotiation, execution and delivery of this Agreement, the transactions
        contemplated hereby and the other documents to be delivered hereunder, including
        the reasonable costs of auditing the books, records and procedures of Seller
        and
        reasonable fees and out-of-pocket expenses of one principal legal counsel
        for
        the Program Agent and the Managing Agents with respect thereto. Seller shall
        pay
        to the Program Agent five Business Days after written demand all reasonable
        costs and out-of-pocket expenses in connection with the administration of
        this
        Agreement, the transactions contemplated hereby and the other documents to
        be
        delivered hereunder including the reasonable costs of auditing the books,
        records and procedures of Seller at the times and in the manner permitted
        under
        this Agreement and reasonable fees and out-of-pocket expenses of legal counsel
        for the Program Agent with respect thereto. Seller shall pay to each Conduit
        Investor, each Managing Agent and the Program Agent on demand any and all
        costs
        and expenses of such Person, if any, including reasonable counsel fees and
        expenses in connection with the enforcement of this Agreement and the other
        documents delivered hereunder and in connection with any restructuring or
        workout of this Agreement or such documents (including any amendments hereto
        or
        thereto), or the administration of this Agreement following an Amortization
        Event.

       

      ARTICLE
        XI

       

      THE
        AGENTS

       

      Section
        11.1.  Authorization
        and Action.
        Each Investor
        hereby designates and appoints Paribas to act as Program Agent hereunder
        and
        under each other Transaction Document, and authorizes the Program Agent and
        such
        Investor’s related Managing Agent to take such actions as Program Agent or
        Managing Agent, as the case may be, on its behalf and to exercise such powers
        as
        are delegated to the Program Agent or such Managing Agent by the terms of
        this
        Agreement and the other Transaction Documents together with such powers as
        are
        reasonably incidental thereto. Neither the Program Agent nor any Managing
        Agent
        shall have any duties or responsibilities, except those expressly set forth
        herein or in any other Transaction Document, or any fiduciary relationship
        with
        any Investor, and no implied covenants, functions, responsibilities, duties,
        obligations or liabilities on the part of the Program Agent or the Managing
        Agents shall be read into this Agreement or any other Transaction Document
        or
        otherwise exist for the Program Agent or the Managing Agents. In performing
        their respective functions and duties hereunder and under the other Transaction
        Documents, (i) the Program Agent shall act solely as agent for the Investors,
        (ii) each Managing Agent shall act solely as agent for the Conduit Investors
        (if
        any) and Committed Investors in the related Investor Group and (iii) neither
        the
        Program Agent nor any Managing Agent shall be deemed to have assumed any
        obligation or relationship of trust or agency with or for any Seller Party
        or
        any of such Seller Party’s successors or assigns. Neither the Program Agent nor
        any Managing Agent shall be required to take any action that exposes the
        Program
        Agent or the Managing Agents to personal liability or that is contrary to
        this
        Agreement, any other Transaction Document or applicable law. The appointment
        and
        authority of the Program Agent and the Managing Agents hereunder shall terminate
        upon the indefeasible payment in full of all Aggregate Unpaids. Each Investor
        hereby authorizes the Program Agent and the Managing Agent for its Investor
        Group, as applicable, to execute each of the Uniform Commercial Code financing
        statements, this Agreement and such other Transaction Documents as may require
        the Program Agent’s or such Managing Agent’s signature on behalf of such
        Investor (the terms of which shall be binding on such Investor). The Program
        Agent agrees to provide promptly to each Managing Agent a copy of any report,
        certificate, notice or other writing provided by any Seller Party or the
        Originator only to the Program Agent.

       

      Section
        11.2.  Delegation
        of
        Duties.
        The Program Agent
        and the Managing Agents may execute any of their respective duties under
        this
        Agreement and each other Transaction Document by or through agents or
        attorneys-in-fact and shall be entitled to advice of counsel concerning all
        matters pertaining to such duties. Neither the Program Agent nor any Managing
        Agent shall be responsible for the negligence or misconduct of any agents
        or
        attorneys-in-fact selected by it with reasonable care.

       

      Section
        11.3.  Exculpatory
        Provisions.
        None of the
        Program Agent, the Managing Agents or any of their respective directors,
        officers, agents or employees shall be (i) liable for any action lawfully
        taken
        or omitted to be taken by it or them under or in connection with this Agreement
        or any other Transaction Document (except for its, their or such Person’s own
        gross negligence or willful misconduct), or (ii) responsible in any manner
        to
        any of the Investors for any recitals, statements, representations or warranties
        made by any Seller Party contained in this Agreement, any other Transaction
        Document or any certificate, report, statement or other document referred
        to or
        provided for in, or received under or in connection with, this Agreement,
        or any
        other Transaction Document or for the value, validity, effectiveness,
        genuineness, enforceability or sufficiency of this Agreement, or any other
        Transaction Document or any other document furnished in connection herewith
        or
        therewith, or for any failure of any Seller Party to perform its obligations
        hereunder or thereunder, or for the satisfaction of any condition specified
        in
Article VI,
        or for the
        perfection, priority, condition, value or sufficiency of any collateral pledged
        in connection herewith. Neither the Program Agent nor any Managing Agent
        shall
        be under any obligation to any Investor to ascertain or to inquire as to
        the
        observance or performance of any of the agreements or covenants contained
        in, or
        conditions of, this Agreement or any other Transaction Document, or to inspect
        the properties, books or records of the Seller Parties. Neither the Program
        Agent nor any Managing Agent shall be deemed to have knowledge of any
        Amortization Event or Potential Amortization Event unless the Program Agent
        or
        such Managing Agent, as applicable, has received notice from Seller or an
        Investor. No Managing Agent shall have any responsibility hereunder to any
        Investor other than the Investors in its Investor Group.

       

      Section
        11.4.  Reliance
        by
        Agents.
        The Program Agent
        and the Managing Agents shall in all cases be entitled to rely, and shall
        be
        fully protected in relying, upon any document or conversation 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 (including
        counsel to Seller), independent accountants and other experts selected by
        the
        Program Agent or any Managing Agent. The Program Agent and the Managing Agents
        shall in all cases be fully justified in failing or refusing to take any
        action
        under this Agreement or any other Transaction Document unless it shall first
        receive such advice or concurrence of the Conduit Investors or the Required
        Committed Investors or all of the Investors, as applicable, as they deem
        appropriate and they shall first be indemnified to their satisfaction by
        the
        Investors, provided
        that unless and
        until the Program Agent or any Managing Agent shall have received such advice,
        or unless the Required Committed Investors or each Managing Agent, as
        applicable, shall have directed the Program Agent to take or refrain from
        taking
        any action, the Program Agent or such Managing Agent may take or refrain
        from
        taking any action, as the Program Agent or such Managing Agent shall deem
        advisable and in the best interests of the Investors. The Program Agent and
        the
        Managing Agents shall in all cases be fully protected in acting, or in
        refraining from acting, in accordance with a request of the related Conduit
        Investors (if any) or the Required Committed Investors or all of the Investors,
        as applicable, and such request and any action taken or failure to act pursuant
        thereto shall be binding upon all the Investors.

       

      Section
        11.5.  Non-Reliance
        on
        Agents and Other Investors.
        Each Investor
        expressly acknowledges that none of the Program Agent, the Managing Agents
        or
        any of their respective officers, directors, employees, agents,
        attorneys-in-fact or affiliates has made any representations or warranties
        to it
        and that no act by the Program Agent or any Managing Agent hereafter taken,
        including any review of the affairs of any Seller Party, shall be deemed
        to
        constitute any representation or warranty by the Program Agent or such Managing
        Agent. Each Investor represents and warrants to the Program Agent and the
        Managing Agents that it has and will, independently and without reliance
        upon
        the Program Agent, any Managing Agent or any other Investor and based on
        such
        documents and information as it has deemed appropriate, made its own appraisal
        of and investigation into the business, operations, property, prospects,
        financial and other conditions and creditworthiness of Seller and made its
        own
        decision to enter into this Agreement, the other Transaction Documents and
        all
        other documents related hereto or thereto.

       

      Section
        11.6.  Reimbursement
        and Indemnification.
        The Committed
        Investors agree to reimburse and indemnify the Program Agent, and the Committed
        Investors in each Investor Group agree to reimburse the Managing Agent for
        such
        Investor Group, and their respective officers, directors, employees,
        representatives and agents ratably according to their Pro Rata Shares or
        Adjusted Pro Rata Shares, as applicable, to the extent not paid or reimbursed
        by
        the Seller Parties (i) for any amounts for which the Program Agent, acting
        in
        its capacity as Program Agent, or any Managing Agent, acting in its capacity
        as
        a Managing Agent, is entitled to reimbursement by the Seller Parties hereunder
        and (ii) for any other expenses incurred by the Program Agent, in its capacity
        as Program Agent, or any Managing Agent, acting in its capacity as a Managing
        Agent, and acting on behalf of the related Investors, in connection with
        the
        administration and enforcement of this Agreement and the other Transaction
        Documents.

       

      Section
        11.7.  Agents
        in their
        Individual Capacities.
        The Program
        Agent, each Managing Agent and each of its respective Affiliates may make
        loans
        to, accept deposits from and generally engage in any kind of business with
        any
        Seller Party or any Affiliate of any Seller Party as though it were not the
        Program Agent or a Managing Agent hereunder. With respect to the acquisition
        of
        Investor Interests pursuant to this Agreement, the Program Agent and each
        Managing Agent shall have the same rights and powers under this Agreement
        in its
        individual capacity as any Investor and may exercise the same as though it
        were
        not the Program Agent or a Managing Agent, and the terms “Committed Investor”
and “Investor” shall include the Program Agent and each Managing Agent in its
        individual capacity.

       

      Section
        11.8.  Successor
        Agent.
        The Program Agent
        may, upon five (5) days’ notice to Seller and the Investors, and the Program
        Agent will, upon the direction of all of the Investors (other than such Program
        Agent, in its individual capacity) resign as Program Agent. Each Managing
        Agent
        may, upon five (5) days’ notice to Seller and the Investors in its Investor
        Group, and a Managing Agent will, upon the direction of all the Investors
        in its
        Investor Group (other than such Managing Agent in its individual capacity),
        resign as Managing Agent. If the Program Agent shall resign, then the Required
        Committed Investors during such five-day period shall appoint from among
        the
        Investors a successor agent. If a Managing Agent shall resign, then the
        Investors in the related Investor Group shall appoint a successor agent during
        such five-day period. If for any reason no successor agent is appointed by
        the
        Required Committed Investors or the applicable Investor Group, as applicable,
        during such five-day period, then effective upon the termination of such
        five-day period, the Investors shall perform all of the duties of the Program
        Agent, or the Investors in the related Investor Group shall perform all of
        the
        duties of the applicable Managing Agent, as applicable, hereunder and under
        the
        other Transaction Documents and Seller and Servicer (as applicable) shall
        make
        all payments in respect of the Aggregate Unpaids directly to the applicable
        Investors and for all purposes shall deal directly with the Investors. After
        the
        effectiveness of any retiring Program Agent’s or Managing Agent’s resignation
        hereunder as Program Agent or Managing Agent, as applicable, the retiring
        Program Agent or Managing Agent shall be discharged from its duties and
        obligations hereunder and under the other Transaction Documents and the
        provisions of this Article XI
        and Article X
        shall continue in
        effect for its benefit with respect to any actions taken or omitted to be
        taken
        by it while it was Program Agent or Managing Agent under this Agreement and
        under the other Transaction Documents.

       

      ARTICLE
        XII

       

      ASSIGNMENTS;
        PARTICIPATIONS

       

      Section
        12.1.  Assignments. 

       

      (a)  Neither
        Seller nor
        Servicer shall have the right to assign its rights or obligations under this
        Agreement.

       

      (b)  Any
        Committed
        Investor may, at any time, assign to one or more Persons (“Purchasing
        Committed Investors”)
        all or any part
        of its rights and obligations under this Agreement pursuant to an assignment
        agreement, substantially in the form set forth in Exhibit VII
        hereto (the
“Assignment
        Agreement”)
        executed by such
        Purchasing Committed Investor and such selling Committed Investor. The consent
        of the Conduit Investor in such Committed Investor’s Investor Group, if any,
        shall be required prior to the effectiveness of any such assignment. In
        addition, so long as no Amortization Event or Potential Amortization Event
        has
        occurred and is continuing at such time, the consent of Seller (such consent
        not
        to be unreasonably withheld or delayed) shall be required prior to the
        effectiveness of any such assignment; provided
        that any Committed
        Investor may assign its rights and obligations hereunder without the consent
        of
        any party to (i) any other then Committed Investor or (ii) any Affiliate
        of the
        selling Committed Investor. Upon delivery of the executed Assignment Agreement
        to the Program Agent, such selling Committed Investor shall be released from
        its
        obligations hereunder to the extent of such assignment. Thereafter the
        Purchasing Committed Investor shall for all purposes be a Committed Investor
        party to this Agreement and shall have all the rights and obligations of
        a
        Committed Investor under this Agreement to the same extent as if it were
        an
        original party hereto and no further consent or action by Seller, the Investors
        or the Program Agent shall be required.

       

      (c)  The
        parties hereby
        agree and consent to the complete or partial assignment by each Conduit Investor
        of all or any portion of its rights under, interest in, title to and obligations
        under this Agreement to one or more of its Support Parties or any other Person,
        pursuant to this Agreement or otherwise, and upon such assignment, such Conduit
        Investor shall be released from its obligations so assigned. Further, the
        parties hereby agree that any assignee of any Conduit Investor of this Agreement
        or all or any of the Investor Interests of such Conduit Investor shall have
        all
        of the rights and benefits under this Agreement as if the term “Conduit
        Investor” explicitly referred to such party, and no such assignment shall in any
        way impair the rights and benefits of such Conduit Investor
        hereunder.

       

      Section
        12.2.  Participations.
        Any Investor may,
        in the ordinary course of its business at any time sell to one or more Persons
        (each a “Participant”)
        participating
        interests in its Pro Rata Share of the Investor Interests or any other interest
        of such Investor hereunder. Notwithstanding any such sale by a Investor of
        a
        participating interest to a Participant, such Investor’s rights and obligations
        under this Agreement shall remain unchanged, such Investor shall remain solely
        responsible for the performance of its obligations hereunder, and other parties
        hereto shall continue to deal solely and directly with such Investor in
        connection with such Investor’s rights and obligations under this
        Agreement.

       

      Section
        12.3.  Joinder
        by
        Conduit Investor.
        Any Investor
        Group may add a Conduit Investor member at any time by the execution and
        delivery of a Joinder Agreement by such proposed Conduit Investor, the other
        members of such Investor Group, Seller, Servicer and the Program Agent, which
        execution and delivery shall not be unreasonably refused by such parties.
        Upon
        the effective date of such Joinder Agreement, each Person specified therein
        as a
“New Conduit Investor” shall become a party hereto as a Conduit Investor,
        entitled to the rights and subject to the obligations of a Conduit Investor
        hereunder.

       

      Section
        12.4.  Extension
        of
        Commitment Termination Date.
        Seller may advise
        the Program Agent and each Managing Agent in writing of its desire to extend
        the
        Commitment Termination Date for an additional period not exceeding 364 days,
        provided
        such request is
        made not more than 90 days prior to, and not less than 60 days prior to,
        the
        then current Commitment Termination Date. Each Managing Agent shall promptly
        notify each Investor in its related Investor Group of any such request and
        each
        such Investor shall notify its related Managing Agent, the Program Agent
        and
        Seller of its decision to accept or decline the request for such extension
        no
        later than 30 days prior to the then current Commitment Termination Date
        (it
        being understood that each Investor may accept or decline such request in
        its
        sole discretion and on such terms as it may elect, and the failure to so
        notify
        its Managing Agent, the Program Agent and Seller shall be deemed an election
        not
        to extend by such Investor). In the event that all Committed Investors (each
        with the consent of the related Conduit Investor) agree to extend the Commitment
        Termination Date, the Seller Parties, the Program Agent, the Investors and
        the
        applicable Managing Agent or Managing Agents shall enter into such documents
        as
        such Investors may deem necessary or appropriate to reflect such extension,
        and
        all reasonable costs and expenses incurred by such Investors, the Managing
        Agents and the Program Agent (including reasonable attorneys’ fees) shall be
        paid by Seller.

       

      ARTICLE
        XIII

       

      MISCELLANEOUS

       

      Section
        13.1.  Waivers
        and
        Amendments.
        (a) No failure or
        delay on the part of the Program Agent, any Managing Agent or any Investor
        in
        exercising any power, right or remedy under this Agreement shall operate
        as a
        waiver thereof, nor shall any single or partial exercise of any such power,
        right or remedy preclude any other further exercise thereof or the exercise
        of
        any other power, right or remedy. The rights and remedies herein provided
        shall
        be cumulative and nonexclusive of any rights or remedies provided by law.
        Any
        waiver of this Agreement shall be effective only in the specific instance
        and
        for the specific purpose for which given.

       

      (b) No
        provision of
        this Agreement may be amended, supplemented, modified or waived except in
        writing in accordance with the provisions of this Section 13.1(b);
        it being
        understood that notwithstanding anything in this Section 13.1(b)
        to the contrary,
        no material amendment to this Agreement shall become effective with respect
        to
        any Conduit Investor unless, if required by the documents governing such
        Conduit
        Investor’s commercial paper program, such Conduit Investor (or the applicable
        Managing Agent on its behalf) shall have received written confirmation from
        each
        of the Rating Agencies that such amendment shall not result in the reduction
        or
        withdrawal of the rating of such Conduit Investor’s Commercial Paper. The
        Conduit Investors, Seller, Servicer, the Managing Agents and the Program
        Agent,
        at the direction of the Required Committed Investors, may enter into written
        modifications or waivers of any provisions of this Agreement, provided
        that no such
        modification or waiver shall:

       

      (i)  without
        the consent
        of each affected Investor, (A) extend the Commitment Termination Date or
        the
        date of any payment or deposit of Collections by Seller or Servicer, (B)
        reduce
        the rate or extend the time of payment of Yield (or any component thereof),
        (C)
        reduce any fee payable to the Program Agent or any Managing Agent for the
        benefit of the Investors, (D) except pursuant to Article XII
        hereof, change the
        amount of the Capital of any Investor, any Committed Investor’s Pro Rata Share
        (except as may be required pursuant to a Conduit Investor’s Support Facilities)
        or any Committed Investor’s Commitment, (E) amend, modify or waive any provision
        of the definition of Required Committed Investors, Section 9.1(e)
        or this
Section 13.1(b),
        (F) consent to or
        permit the assignment or transfer by Seller of any of its rights and obligations
        under this Agreement, (G) change the definition of “Aggregate Reserves”, “Cash
        Receipt Date”, “Charged-Off Receivable”, “Concentration Limit”, “Default Ratio”,
“Defaulted Receivable”, “Delinquency Ratio”, “Delinquent Receivable”, “Dilution
        Horizon Ratio”, “Dilution Ratio”, “Dilution Reserve,” “Dilution Reserve
        Percentage”, “Eligible Receivable,” “Investor Interest”, “Loss Horizon Ratio”,
“Loss Ratio”, “Loss Reserve”, “Loss Reserve Percentage”, “Net Receivable Pool
        Balance”, “Receivable”, “Stress Factor”, “Turnover Rate”, “Yield and Servicer
        Fee Reserve”, or “Yield and Servicer Fee Reserve Percentage” or (H) amend or
        modify any defined term (or any defined term used directly or indirectly
        in such
        defined term) used in, clauses (A) through (G) above in a manner that would
        circumvent the intention of the restrictions set forth in such clauses;
        or

       

      (ii)  without
        the written
        consent of the Program Agent or any Managing Agent, amend, modify or waive
        any
        provision of this Agreement if the effect thereof is to affect the rights
        or
        duties of the Program Agent or such Managing Agent in its capacity as such,
        as
        applicable.

       

      Notwithstanding
        the
        foregoing, the Program Agent, the Required Committed Investors (or the Managing
        Agents, as applicable) and the Conduit Investors may enter into amendments
        to
        modify any of the terms or provisions of Article XI,
Article XII
        and Section 13.14
        or any other
        provision of this Agreement without the consent of Seller, provided
        that such
        amendment has no negative impact upon Seller. Any modification or waiver
        made in
        accordance with this Section 13.1
        shall apply to
        each of the Investors equally and shall be binding upon Seller, the Investors,
        the Managing Agents and the Program Agent.

       

      Section
        13.2.  Notices.
        Except as
        provided below, all communications and notices provided for hereunder shall
        be
        in writing (including bank wire, telecopy or electronic facsimile transmission
        or similar writing) and shall be given to the other parties hereto at their
        respective addresses, telecopy numbers and e-mail addresses set forth on
        the
        signature pages hereof, or at such other address, telecopy number or e-mail
        address as such Person may hereafter specify for the purpose of notice to
        each
        of the other parties hereto. Each such notice or other communication shall
        be
        effective if given by telecopy, upon the receipt thereof, if given by mail,
        three (3) Business Days after the time such communication is deposited in
        the
        mail with first class postage prepaid or if given by any other means, when
        received at the address specified in this Section 13.2.
        Notices and other
        communications hereunder may be delivered or furnished by electronic
        communication (including e-mail), provided
        that the subject
        line or title of such notices or other communications includes the following
        language: EL PASO - Transaction Notice - [subject] in addition to any other
        language which is required hereunder. Notices and other communications sent
        to
        an e-mail address deemed received upon the sender’s receipt of an
        acknowledgement from the intended recipient (such as by the “return receipt
        requested” function, as available, return e-mail or other written
        acknowledgement); provided
        that if such
        notice or other communication is not sent during the normal business hours
        of
        the recipient, such notice or communication shall be deemed to have been
        sent at
        the opening of business on the next business day for the recipient. Seller
        and
        Servicer hereby authorize the Program Agent to effect purchases based on
        telephonic notices made by any Person whom the Program Agent or such Managing
        Agent, as applicable, in good faith believes to be acting on behalf of Seller
        or
        Servicer. Seller or Servicer, as the case may be, agrees to deliver promptly
        to
        the Program Agent or the applicable Managing Agent a written confirmation
        of
        each telephonic notice signed by an authorized officer of Seller or Servicer;
        provided
        the absence of
        such confirmation shall not affect the validity of such notice. If the written
        confirmation differs from the action taken by the Program Agent or such Managing
        Agent, the records of the Program Agent or such Managing Agent shall govern
        absent manifest error.

       

      Section
        13.3.  Ratable
        Payments.
        If any Investor,
        whether by setoff or otherwise, has payment made to it with respect to any
        portion of the Aggregate Unpaids owing to such Investor (other than payments
        received pursuant to Section 10.2
        or 10.4)
        in a greater
        proportion than that received by any other Investor entitled to receive a
        ratable share of such Aggregate Unpaids, such Investor agrees, promptly upon
        demand, to purchase for cash without recourse or warranty a portion of such
        Aggregate Unpaids held by the other Investors so that after such purchase
        each
        Investor will hold its ratable proportion of such Aggregate Unpaids;
provided
        that if all or any
        portion of such excess amount is thereafter recovered from such Investor,
        such
        purchase shall be rescinded and the purchase price restored to the extent
        of
        such recovery, but without interest.

       

      Section
        13.4.  Protection
        of
        Ownership Interests of the Investors.

       

      (a)  Seller
        agrees that
        from time to time, at its expense, it will promptly execute and deliver all
        instruments and documents, and take all actions, that may be necessary, or
        that
        the Program Agent or any Managing Agent may reasonably request, to perfect,
        protect or more fully evidence the Investor Interests, or to enable the Program
        Agent or the Investors to exercise and enforce their rights and remedies
        hereunder.

       

      (b)  If
        any Seller Party
        fails to perform any of its obligations hereunder, the Program Agent or any
        Investor may (but shall not be required to) perform, or cause performance
        of,
        such obligations, and the Program Agent’s or such Investor’s costs and expenses
        incurred in connection therewith shall be payable by Seller as provided in
        Section 10.4.
        Each Seller Party
        irrevocably authorizes the Program Agent at any time and from time to time
        in
        the sole discretion of the Program Agent, and appoints the Program Agent
        as its
        attorney-in-fact, to act on behalf of such Seller Party (i) to execute on
        behalf
        of Seller as debtor and to file financing statements necessary or desirable
        in
        the Program Agent’s sole discretion to perfect and to maintain the perfection
        and priority of the interest of the Investors in the Receivables and (ii)
        to
        file a carbon, photographic or other reproduction of this Agreement or any
        financing statement with respect to the Receivables as a financing statement
        in
        such offices as the Program Agent in its sole discretion deems necessary
        or
        desirable to perfect and to maintain the perfection and priority of the
        interests of the Investors in the Receivables. This appointment is coupled
        with
        an interest and is irrevocable.

       

      Section
        13.5.  Confidentiality.

       

      (a)  Each
        Seller Party
        agrees to exercise its best efforts to keep, and to cause any third party
        recipient of the information described in this Section 13.5(a)
        to keep, any
        information delivered or made available by the Program Agent, any Managing
        Agent
        or any Investor to it, confidential from anyone other than Persons employed
        or
        retained by such party who are or are expected to become engaged in evaluating,
        approving, structuring or administering the transactions contemplated hereunder,
        the terms, conditions and structure of this Agreement and the other Transaction
        Documents and any other confidential proprietary information with respect
        to the
        Program Agent, the Managing Agents, the Investors and their respective
        businesses obtained by or on behalf of such Seller Party in connection with
        the
        structuring, negotiating and execution of the transactions contemplated herein;
        provided
        that nothing shall
        prevent such Seller Party from disclosing such information (i) to any other
        party to any Transaction Document for the purpose of administering or enforcing
        this Agreement or any other Transaction Document, (ii) pursuant to subpoena
        or upon the order of any court or administrative agency, (iii) upon the
        request or demand of any governmental authority having jurisdiction over
        such
        Person, (iv) if such information has been publicly disclosed without the
        recipient’s violation of its confidentiality obligations, (v) to the extent
        reasonably required in connection with any litigation to which such Person
        or
        such Person’s Affiliates may be a party, (vi) to the extent reasonably
        required in connection with the exercise of any remedy hereunder, or
        (vii) to such Person’s legal counsel, independent auditors and other
        professional advisors and to such Person’s rating agencies. Unless prohibited
        from doing so by applicable law, in the event that a Seller Party is legally
        requested or required to disclose any confidential information pursuant to
        paragraph (ii), (iii), or (v) of this Section 13.5(a),
        such Person shall
        notify the Program Agent and each Managing Agent and Investor affected thereby
        of such request or requirement and will use reasonable efforts to minimize
        the
        disclosure of such information.

       

      (b)  The
        Program Agent
        and each Investor and Managing Agent agrees to exercise its best efforts
        to
        keep, and to cause any third party recipient of the information described
        in
        this Section 13.5(b)
        to keep, any
        information delivered or made available by any Seller Party to it, confidential
        from anyone other than Persons employed or retained by such party who are
        or are
        expected to become engaged in evaluating, approving, structuring or
        administering the transactions contemplated hereunder; provided
        that nothing shall
        prevent the Program Agent or any Investor or Managing Agent from disclosing
        such
        information (i) to any other party to any Transaction Document for the
        purpose of administering or enforcing this Agreement or any other Transaction
        Document, (ii) pursuant to subpoena or upon the order of any court or
        administrative agency, (iii) upon the request or demand of any governmental
        authority having jurisdiction over such Person, (iv) if such information
        has been publicly disclosed without the recipient’s violation of its
        confidentiality obligations, (v) to the extent reasonably required in
        connection with any litigation to which such Person or such Person’s Affiliates
        may be a party, (vi) to the extent reasonably required in connection with
        the exercise of any remedy hereunder, (vii) to such Person’s legal counsel,
        independent auditors and other professional advisors and to such Person’s rating
        agencies, or (viii) to any actual or proposed participant or assignee of
        such Person (each, a “Transferee”)
        that has agreed
        in writing to be bound by the provisions of this Section 13.5(b).
        Unless prohibited
        from doing so by applicable law, in the event that the Program Agent or any
        Investor or Managing Agent is legally requested or required to disclose any
        confidential information pursuant to paragraph (ii), (iii), or (v) of this
Section 13.5(b),
        such Person shall
        notify each affected Seller Party of such request or requirement and will
        use
        reasonable efforts to minimize the disclosure of such information.

       

      (c)  Notwithstanding
        the
        foregoing, each party hereto may disclose to any and all other Persons, without
        limitation of any kind, the tax treatment and tax structure of the transactions
        contemplated by this Agreement and the Transaction Documents and all materials
        of any kind (including opinions or other tax analyses) that are provided
        to them
        relating to such tax treatment and tax structure.

       

      Section
        13.6.  Bankruptcy
        Petition.
        Seller, Servicer,
        the Program Agent, each Managing Agent and each Committed Investor hereby
        covenants and agrees that, prior to the date that is one year and one day
        after
        the payment in full of all outstanding senior indebtedness of a Conduit
        Investor, it will not institute against, or join any other Person in instituting
        against, such Conduit Investor any bankruptcy, reorganization, arrangement,
        insolvency or liquidation proceedings or other similar proceeding under the
        laws
        of the United States or any state of the United States.

       

      Section
        13.7.  Limitation
        of
        Liability; Limitation of Payment; No Recourse.

       

      (a)  No
        claim may be
        made by any Seller Party or any other Person against any Conduit Investor,
        any
        Managing Agent, the Program Agent or any Committed Investor or their respective
        Affiliates, directors, officers, employees, attorneys or agents for any special,
        indirect, consequential or punitive damages in respect of any claim for breach
        of contract or any other theory of liability arising out of or related to
        the
        transactions contemplated by this Agreement, or any act, omission or event
        occurring in connection therewith; and each Seller Party hereby waives,
        releases, and agrees not to sue upon any claim for any such damages, whether
        or
        not accrued and whether or not known or suspected to exist in its
        favor.

       

      (b)  Notwithstanding
        any
        provisions contained in this Agreement or any other Transaction Document
        to the
        contrary, no Conduit Investor shall be obligated to pay any amount pursuant
        to
        this Agreement or any other Transaction Document unless such Conduit Investor
        has excess cash flow from operations or has received funds which may be used
        to
        make such payment and which funds or excess cash flow are not required to
        repay
        any of such Conduit Investor’s Commercial Paper when due. Any amount which any
        Conduit Investor does not pay pursuant to the operation of the preceding
        sentence shall not constitute a claim against such Conduit Investor for any
        such
        insufficiency. The agreements in this section shall survive the termination
        of
        this Agreement and the other Transaction Documents.

       

      (c)  Notwithstanding
        anything in this Agreement or any other Transaction Document to the contrary,
        the obligations of each Conduit Investor under the Transaction Documents
        are
        solely the corporate obligations of such Conduit Investor. No recourse shall
        be
        had for any obligation or claim arising out of or based upon any Transaction
        Document against any stockholder, employee, officer, director or incorporator
        of
        such Conduit Investor.

       

      (d)  The
        agreements in
        this Section 13.7
        shall survive the
        termination of this Agreement and the other Transaction Documents.

       

      Section
        13.8.  Seller’s
        Payment
        Obligations.
        Seller’s payment
        obligations under this Agreement are limited to funds available therefor
        pursuant to Section 2.4
        and 2.5,
        Seller’s funds
        required to be deposited into the Collection Account or other available funds
        of
        Seller, and such payment obligations shall be non-recourse other than with
        respect to such funds; provided
        that nothing
        contained in this Section shall limit the recourse or rights of the Program
        Agent, any Managing Agent or any Investor with respect to the Receivables
        (whether now existing or hereafter arising), the Collections, each Lock-Box
        and
        Blocked Account and all agreements related thereto, all Related Security
        (including all of Seller’s rights, including rights of indemnification and
        rights to receive Adjustment Payments, under each Sale Agreement), all other
        rights and payments relating to such Receivables and all proceeds of any
        thereof
        and all other assets in which the Program Agent on behalf of the Investors
        has
        acquired, may hereafter acquire and/or purports to have acquired an interest
        under this Agreement, provided
        further
        that that nothing
        contained in this Section shall limit the rights of the Program Agent, any
        Managing Agent or any Investor to require Seller’s performance of its
        obligations under this Agreement or any other Transaction Document (other
        than
        its payment obligations to the extent limited by this Section).

       

      Section
        13.9.  CHOICE
        OF
        LAW.
        THIS AGREEMENT
        SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
        OF
        NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE
        STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW
        PRINCIPLES).

       

      Section
        13.10.  CONSENT
        TO
        JURISDICTION.
        EACH PARTY TO
        THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS (A) FOR ITSELF AND ITS PROPERTY
        IN ANY
        LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE OTHER TRANSACTION
        DOCUMENTS TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY
        JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF
        THE
        COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF AMERICA
        FOR
        THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;
        (B)
        CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS
        AND
        WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
        SUCH
        ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING
        WAS
        BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;
        (C)
        AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED
        BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY
        SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH PERSON AT THE ADDRESS SPECIFIED
        PURSUANT TO SECTION
        13.2
        OR AT SUCH OTHER
        ADDRESS OF WHICH THE PARTIES HERETO SHALL HAVE BEEN NOTIFIED PURSUANT THERETO;
        (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF
        PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO
        SUE IN
        ANY OTHER JURISDICTION; AND (E) WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY
        APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LEGAL ACTION
        OR
        PROCEEDING RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS
        ANY
        SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

       

      Section
        13.11.  WAIVER
        OF JURY
        TRIAL.
        EACH PARTY HERETO
        HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
        OR
        INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE)
        IN ANY
        WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT
        EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP
        ESTABLISHED HEREUNDER OR THEREUNDER.

       

      Section
        13.12.  Integration;
        Binding Effect; Survival of Terms.

       

      (a)  This
        Agreement and
        each other Transaction Document contain the final and complete integration
        of
        all prior expressions by the parties hereto with respect to the subject matter
        hereof and shall constitute the entire agreement among the parties hereto
        with
        respect to the subject matter hereof superseding all prior oral or written
        understandings.

       

      (b)  This
        Agreement
        shall be binding upon and inure to the benefit of the parties hereto and
        their
        respective successors and permitted assigns (including any trustee in
        bankruptcy). This Agreement shall create and constitute the continuing
        obligations of the parties hereto in accordance with its terms and shall
        remain
        in full force and effect until terminated in accordance with its terms;
provided
        that the rights
        and remedies with respect to (i) any breach of any representation and warranty
        made by any Seller Party pursuant to Article V,
        (ii) the
        indemnification and payment provisions of Article X,
        and Sections
        13.5,
13.6
        and 13.7
        shall be
        continuing and shall survive any termination of this Agreement. References
        in
        this Agreement to any party or any other Person shall include such party’s or
        Person’s successors and assigns unless otherwise indicated.

       

      Section
        13.13.  Counterparts;
        Severability; Section References.
        This Agreement
        may be executed in any number of counterparts and by different parties hereto
        in
        separate counterparts, each of which when so executed shall be deemed to
        be an
        original and all of which when taken together shall constitute one and the
        same
        Agreement. Any provisions of this Agreement which are prohibited or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction. Unless otherwise expressly indicated, all references
        herein
        to “Article,” “Section,” “Schedule” or “Exhibit” shall mean articles and
        sections of, and schedules and exhibits to, this Agreement.

       

      Section
        13.14.  Agent
        Roles.
        Each of the
        parties hereto acknowledges that Paribas, one or more Managing Agents and
        Committed Investors acts, or may in the future act, (i) as administrator
        or
        managing agent for one or more Conduit Investors or their Funding Sources,
        (ii)
        as issuing and paying agent for Commercial Paper of one or more Conduit
        Investors or their Funding Sources, (iii) as a Support Party for one or more
        Conduit Investors or their Funding Sources and (iv) to provide other services
        from time to time for some or all of the Conduit Investors. Without limiting
        the
        generality of this Section 13.14,
        each party hereby
        acknowledges and consents to any and all such soles of Paribas and any Managing
        Agent and Committed Investor and agrees that in connection with any such
        role,
        Paribas or such Managing Agent or Committed Investor may take, or refrain
        from
        taking, any action that it, in its discretion, deems appropriate, including
        in
        any such role or in any role under this Agreement.

       

      Section
        13.15.  Characterization.

       

      (a)  It
        is the intention
        of the parties hereto that each purchase hereunder shall constitute and be
        treated as an absolute and irrevocable sale, which purchase shall provide
        the
        applicable Investor with the full benefits of ownership of the applicable
        Investor Interest. Except as specifically provided in this Agreement, each
        sale
        of an Investor Interest hereunder is made without recourse to Seller;
provided
        that (i) Seller
        shall be liable to each Investor and the Program Agent for all representations,
        warranties, covenants and indemnities made by Seller pursuant to the terms
        of
        this Agreement, and (ii) such sale does not constitute and is not intended
        to
        result in an assumption by any Investor or the Program Agent or any assignee
        thereof of any obligation of Seller, the Originator or any other Person arising
        in connection with the Receivables, the Related Security, or the related
        Contracts, or any other obligations of Seller or the Originator.

       

      (b)  In
        addition to any
        ownership interest which the Program Agent may from time to time acquire
        pursuant hereto, Seller hereby grants to the Program Agent for the ratable
        benefit of the Investors a valid and perfected security interest in all of
        Seller’s right, title and interest in, to and under all Receivables now existing
        or hereafter arising, the Collections, each Lock-Box and Blocked Account
        and all
        agreements related thereto, all Related Security (including all of Seller’s
        rights, including rights of indemnification and rights to receive Adjustment
        Payments, under each Sale Agreement and all UCC financing statements filed
        pursuant either Sale Agreement), all other rights and payments relating to
        such
        Receivables and all proceeds of any thereof and all other assets in which
        the
        Program Agent on behalf of the Investors has acquired, may hereafter acquire
        and/or purports to have acquired an interest under this Agreement prior to
        all
        other liens on and security interests therein to secure the prompt and complete
        payment of the Aggregate Unpaids. The Program Agent and the Investors shall
        have, in addition to the rights and remedies that they may have under this
        Agreement, all other rights and remedies provided to a secured creditor under
        the UCC and other applicable law, which rights and remedies shall be cumulative.
        Seller hereby authorizes the Program Agent, within the meaning of 9-509 of
        any
        applicable enactment of the UCC, as secured party for the benefit of itself
        and
        of the Investors, to file, without the signature of Seller or the Originator,
        as
        debtors, the UCC financing statements contemplated herein and under each
        Sale
        Agreement.

       

      (c)  In
        connection with
        Seller’s assignment of its right, title and interest in, to and under the Sale
        Agreements to the Program Agent hereunder, Seller agrees that the Program
        Agent
        shall have the right to enforce Seller’s rights and remedies under each Sale
        Agreement, to receive all amounts payable thereunder or in connection therewith,
        to consent to amendments, modifications or waivers thereof, and to direct,
        instruct or request any action thereunder, but in each case without any
        obligation on the part of the Program Agent or any Investor or any of its
        or
        their respective Affiliates to perform any of the obligations of Seller under
        either Sale Agreement. To the extent that Seller enforces Seller’s rights and
        remedies under a Sale Agreement, from and after the occurrence of an
        Amortization Event, and during the continuance thereof, the Program Agent
        shall
        have the exclusive right to direct such enforcement by Seller. Without limiting
        the generality of the foregoing, Seller shall not consent to the eligibility
        of
        Excluded Receivables as Receivables under the Sale Agreements without the
        prior
        consent of the Program Agent (acting at the direction of the Required Committed
        Investors).

       

      (d) This
        Agreement and
        the transactions contemplated hereby have been structured with the intention
        that they be treated as a financing transaction for purposes of federal,
        state
        and local income and franchise taxes and any other tax imposed on or measured
        by
        income.

       

      [SIGNATURE
        PAGES FOLLOW]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

       

      TGP
        FUNDING
        COMPANY, L.L.C.

       

      By: 
/s/
        John J.
        Hopper                                       

      Name: 
John
        J.
        Hopper

      Title:    
        Vice President and Treasurer

      

       

      Address: TGP
        Funding
        Company, L.L.C.

      1001
        Louisiana
        Street

      Houston,
        Texas
        77002

      Attention:
        Treasurer

       

      Fax: 713-420-2708

      

       

      TENNESSEE
        GAS
        PIPELINE COMPANY

       

      By: 
/s/
        John J.
        Hopper                                     

      Name: 
John
        J.
        Hopper

      Title:    
        Vice President and Treasurer

      

       

      Address: Tennessee
        Gas
        Pipeline Company

      1001
        Louisiana
        Street

      Houston,
        Texas
        77002

      Attention:
        Treasurer

       

      Fax: 713-420-2708

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      STARBIRD
        FUNDING
        CORPORATION,

      as
        Conduit Investor

       

       

      By: 
/s/
        R.
        Douglas
        Donaldson                         

      Name: 
R.
        Douglas Donaldson

      Title:    
        Treasurer

       

          

      
        	 	
                Address:

              	
                Starbird
                  Funding Corporation

              
	 	 	
                One
                  International Place

              
	 	 	
                Boston,
                  MA  02100

              
	 	 	
                 Attention: 
                  R. Douglas Donaldson

              
	 	 	
                Telephone: 
                  (617) 951-7000

              

      

    

    
         

                              Fax:
        617-951-7500

                              E-mail
        Address: 
ddonaldson@ropesgray.com

      

       

      BNP
        PARIBAS, New
        York Branch,

      as
        the Managing Agent for the Starbird Investor Group and as Program
        Agent

       

      By: 
/s/
        Sean
        Reddington                          

      Name: 
Sean
        Reddington

      Title:    
        Managing Director

       

      By: 
/s/
        Michael
        Gonik                              

      Name:  
        Michael Gonik

      Title:     
        Director

      

      Address:      
        BNP Paribas

              New
        York
        Branch

              787
        Seventh
        Avenue

              New
        York, NY 
10019

       

      Fax: 
        22-841-2689

      E-mail
        Address:  michael.gonik@americas.bnpparibas.com

       

       

       

       

      ACCEPTED
        AND AGREED
        TO,

      solely
        for purposes
        of Section 8.6 above.

      

      EL
        PASO CORPORATION

       

      By: 
/s/
        John J.
        Hopper                                  
  

      Name: 
John
        J.
        Hopper

      Title:    
        Vice President and Treasurer

      

       

      Address:    El
        Paso
        Corporation

                
1001
        Louisiana
        Street

                
Houston,
        TX  77002

                
Attention: 
        Treasurer

       

      Fax:       713-420-2708

       

      E-mail
        Address:

       

      

      

      
        
          
            [Signature
              Pages to Receivables Purchase Agreement]

             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        I
        TO

      RECEIVABLES
        PURCHASE AGREEMENT

      

      

      DEFINITIONS

      

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

       

      “Accrual
        Period”
means
        (i) the
        period commencing on and including the date of the initial Incremental Purchase
        and ending on but excluding the next following Monthly Settlement Date, and
        (ii)
        each successive period commencing on and including a Monthly Settlement Date
        and
        ending on but excluding the next following Monthly Settlement Date.

       

      “Additional
        Amounts”
means
        all
        indebtedness and other obligations owed to the Originator or Financing LLC
        (prior to giving effect to any transfer or conveyance under the applicable
        Sale
        Agreement) or to Seller (after giving effect to such transfers and conveyances)
        arising from commodity, volumetric or usage or from transportation services
        (other than transportation reservation) or storage services (other than storage
        reservation), but excluding any such indebtedness or obligations owed to
        the
        Originator, Financing LLC or Seller by any of the Affiliates of the Originator
        from time to time.

       

      “Adjusted
        Pro
        Rata Share”
means,
        for each
        Committed Investor, the Commitment of such Committed Investor within a given
        Investor Group divided
        by
        the sum of the
        Commitments of all of the Committed Investors in such Investor Group, adjusted
        as necessary to give effect to any assignments pursuant to Section 12.1(b).

       

      “Adjustment
        Payment”
means
        any
        Purchase Price Credit, Repurchase Price or Special Adjustment Amount (as
        defined
        in the applicable Sale Agreement) payable to Seller (including as assignee
        of
        Finance LLC) or its assigns pursuant to a Sale Agreement.

       

      “Adverse
        Claim”
means
        a lien,
        security interest, charge or encumbrance, or other right or claim in, of
        or on
        any Person’s assets or properties in favor of any other Person.

       

      “Affected
        Person”
means,
        each
        Investor, each Managing Agent, the Program Agent, each Funding Source with
        respect to a Conduit Investor, and any insurance company, bank or other funding
        entity providing liquidity, credit enhancement or back-up purchase support
        or
        facilities to a Conduit Investor or its Funding Source.

       

      “Affiliate”
means,
        with
        respect to any Person, any other Person directly or indirectly controlling,
        controlled by, or under direct or indirect common control with, such Person
        or
        any Subsidiary of such Person.

       

      “Aggregate
        Capital”
means,
        at any
        time, the aggregate amount of Capital of all Investor Interests outstanding
        on
        such date.

       

      “Aggregate
        Reserves”
means,
        at any
        time, the sum of the Loss Reserve, the Yield and Servicer Fee Reserve and
        the
        Dilution Reserve for the most recently completed Monthly Period.

       

      “Aggregate
        Unpaids”
means,
        at any
        time, an amount equal to the sum of all Aggregate Capital and all unpaid
        Obligations (whether due or accrued) at such time.

       

      “Agreement”
means
        this
        Receivables Purchase Agreement, as it may be amended or modified and in effect
        from time to time.

       

      “Alternate
        Rate”
means,
        for any
        day, the sum of the Prime Rate for such day plus the Applicable
        Martin.

       

      “Amortization
        Date”
means
        the
        earliest to occur of (i) the Commitment Termination Date, (ii) the Business
        Day
        immediately prior to the occurrence of an Amortization Event set forth in
        Section 9.1(d),
        (iii) the
        Business Day specified in a written notice from the Program Agent following
        the
        occurrence of any other Amortization Event, (iv) the date on which the Program
        Limit shall have been reduced to zero in accordance with the definition of
        such
        term; provided
        that any
        prepayment resulting from such declaration of the Amortization Date shall
        be
        subject to the provisions of Section 2.1.

       

      “Amortization
        Event”
has
        the meaning
        specified in Article IX.

       

      “Applicable
        Margin”
has
        the meaning
        set forth in the Fee Letters or as otherwise provided in Section 9.3.

       

      “Assignment
        Agreement”
has
        the meaning
        set forth in Section 12.1(b).

       

      “Bank
        Rate”
means
        the LIBO
        Rate or the Alternate Rate, as applicable, with respect to each Investor
        Interest of the Committed Investors and any Investor Interest of a Conduit
        Investor which is being determined pursuant to Article IV

       

      “Blocked
        Account”
means
        each
        depositary account in which any Collections are deposited and which is listed
        on
Exhibit IV.

       

      “Blocked
        Account
        Agreement”
means
        an
        agreement substantially in the form of Exhibit VI,
        or such other
        agreement in form and substance reasonably acceptable to the Program Agent,
        among Seller, the Program Agent and a Collection Bank or, in the case of
        the
        Blocked Account Agreement relating to the Collection Account, among Seller,
        the
        Program Agent and the depositary holding the Collection Account.

       

      “Breakage
        Costs”
means
        for any
        Accrual Period or any tranche period for Commercial Paper for any Investor
        Interest which: (i) has its Capital reduced by reason of a reduction of the
        Program Limit without compliance with Servicer’s notice requirements hereunder,
        (ii) does not have its Capital reduced on the applicable Monthly Settlement
        Date
        to the full extent of its share of any excess of Aggregate Capital over the
        Program Limit as scheduled to be reduced on such date pursuant to notice
        from
        the Servicer, or (iii) is assigned pursuant to a Support Facility or terminated
        prior to the date on which it was originally scheduled to end, including
        by the
        written notice of Seller that it wishes to terminate the facility evidenced
        by
        this Agreement; an amount equal to the excess, if any, of (A) the Yield that
        would have accrued during the remainder of the Accrual Period or the tranche
        period for Commercial Paper determined by the applicable Managing Agent to
        relate to such Investor Interest (as applicable) subsequent to the date of
        such
        reduction, assignment or termination (or in respect of clause (ii) above,
        the
        Monthly Settlement Date on which such reduction of the Program Limit was
        scheduled to occur) of the Capital of such Investor Interest if such reduction,
        assignment or termination had not occurred or such notice of reduction of
        the
        Program Limit had not been delivered, over (B) the sum of (x) to the extent
        all
        or a portion of such Capital is allocated to another Investor Interest, the
        amount of Yield actually accrued during the remainder of such period on such
        Capital for the new Investor Interest, and (y) to the extent such Capital
        is not
        allocated to another Investor Interest, the income, if any, actually received
        during the remainder of such period by the holder of such Investor Interest
        from
        investing the portion of such Capital not so allocated. Prior to the
        Amortization Date, all Breakage Costs shall be due and payable hereunder
        on the
        Monthly Settlement Date which follows written demand therefor, and from and
        after the Amortization Date, all Breakage Costs shall be due and payable
        hereunder within five Business Days after written demand.

       

      “Business
        Day”
means
        any day on
        which banks are not authorized or required to close in New York, New York,
        and,
        if the applicable Business Day relates to any computation or payment to be
        made
        with respect to the LIBO Rate, on which dealings in dollar deposits are carried
        on in the London interbank market.

       

      “Capital”
of
        any Investor
        Interest means, at any time, (A) the Purchase Price of such Investor Interest,
        minus (B) the sum of the aggregate amount of Collections and other payments
        received by the Program Agent or the applicable Managing Agent which in each
        case are applied to reduce such Capital in accordance with the terms and
        conditions of this Agreement; provided that such Capital shall be restored
        (in
        accordance with Section 2.5)
        in the amount of
        any Collections or other payments so received and applied if at any time
        the
        distribution of such Collections or payments are rescinded, returned or refunded
        for any reason.

       

      “Capital
        Pro
        Rata Share”
means,
        for any
        Investor at any time, the amount of Capital allocated to the Investor Interests
        of such Investor at such time divided
        by
        the Aggregate
        Capital at such time.

       

      “Carryback
        Receivables”
means,
        for any
        Monthly Period, Eligible Receivables (or the applicable portion thereof)
        having
        an aggregate Outstanding Balance equal to the lesser of (a) the aggregate
        Outstanding Balance of Eligible Receivables which were first included in
        the
        Current Month Net Receivables Pool Balance for such Monthly Period (calculated
        as though there were no Carryback Receivables) on any day prior to the Monthly
        Report Date for the immediately preceding Monthly Period or (b) the excess,
        if
        any, of (i) the sum of (A) the Capital of the Investor Interests at the end
        of
        such immediately preceding Monthly Period plus (B) the Aggregate Reserves
        computed for such immediately preceding Monthly Period, over (ii) the sum
        of (A)
        the Net Receivable Pool Balance at the end of such immediately preceding
        Monthly
        Period, plus (B) the Collection Account Amount on the last Daily Settlement
        Date
        for such immediately preceding Monthly Period (after giving effect to any
        changes therein on such Daily Settlement Date).

       

      “Cash
        Receipt
        Date”
means
        the
        16th
        Business Day of
        each Monthly Period, or, if earlier, the stated due date for invoices of
        Receivables which were created during the prior Monthly Period (or, in the
        case
        of the initial Monthly Period, during the period commencing August 1, 2006 and
        ending on and including the Initial Cutoff Date).

       

      “Change
        of
        Control”
means the
        Originator’s
        failure to own, directly or indirectly, 100% of the issued and outstanding
        member interests of Seller.

       

      “Charged-Off
        Receivable”
means
        a
        Receivable which, consistent with Servicer’s collection procedures, would be
        written off Seller’s books as uncollectible. For the avoidance of doubt, a
        Charged-Off Receivable shall be deemed to have an Outstanding Balance of
        $0.

       

      “Collection
        Account”
has
        the meaning
        set forth in Section 2.5.

       

      “Collection
        Account Amount”
shall
        mean, at
        any time, the aggregate amount then on deposit in the Collection
        Account.

       

      “Collection
        Bank”
means,
        at any
        time, any of the banks holding one or more Blocked Accounts.

       

      “Collection
        Notice”
means
        a notice,
        in substantially the form of Annex
        A
        to Exhibit VI,
        from the Program
        Agent to a Collection Bank.

       

      “Collection
        Notice Event”
means
        (a) (i) the
        rating of Servicer’s long-term senior unsecured debt rating, as in effect on the
        date of this Agreement shall have been reduced by one notch by either Rating
        Agency and (ii) such Rating Agency shall have announced a negative outlook
        with
        respect to such reduced rating, and the event described in this clause (i)
        shall
        have continued for a period of ten days, or (ii) such rating shall have been
        reduced by two or more notches by either Rating Agency or shall have been
        withdrawn. (It is intended by the parties that a “notch” refers to a rating
        subcategory within a main rating category by a Rating Agency, e.g., a change
        from B1 to B2 by Moody’s or from B+ to B by S&P each shall constitute a
        reduction of one notch.)

       

      “Collections”
means,
        with
        respect to any Receivable, all cash collections in respect of such Receivable,
        including all yield, Finance Charges or other related amounts accruing in
        respect thereof and all cash proceeds of Related Security (including any
        Adjustment Payment) with respect to such Receivable.

       

      “Commercial
        Paper”
means
        promissory
        notes of any Conduit Investor issued by such Conduit Investor or its Funding
        Source in the commercial paper market.

       

      “Commitment”
means,
        for each
        Committed Investor, the commitment of such Committed Investor to purchase
        Investor Interests from Seller in an amount not to exceed (i) in the aggregate,
        the amount set forth opposite such Committed Investor’s name on Schedule A
        to this Agreement,
        as such amount may be modified in accordance with the terms hereof and (ii)
        with
        respect to any individual purchase hereunder, its Pro Rata Share of the Purchase
        Price therefor.

       

      “Commitment
        Termination Date”
means
        August 30, 2007, unless such date is extended with the consent of the
        parties hereto.

       

      “Committed
        Investors”
means
        Paribas and
        any other Investor designated as a Committed Investor in the applicable
        Assignment Agreement.

       

      “Computation
        Agent”
means
        El Paso
        Corporation, a Delaware corporation, or any successor thereto.

       

      “Concentration
        Limit”
means,
        at any
        time, for any Obligor of a Receivable, (i) the Allowable Percentage (determined
        in accordance with the table set forth below) of the Net Outstanding Balance
        of
        all Eligible Receivables, or (ii) such higher percentage of the Net Outstanding
        Balance of all Eligible Receivables or higher amount (a “Special
        Concentration Limit”)
        for any Obligor
        designated in writing by the Program Agent (at the direction or with the
        consent
        of the Required Committed Investors); provided,
        that in the case
        of an Obligor and any Affiliate of such Obligor, the Concentration Limit
        shall
        be calculated as if such Obligor and such Affiliate are one Obligor; and
        provided,
further,
        the Program Agent
        (at the direction or with the consent of the Required Committed Investors)
        may,
        upon not less than three Business Days’ notice to Seller, cancel or modify any
        Special Concentration Limit (such right not to be unreasonably
        exercised).

       

      
        	
                Allowable
                  Percentage

                 

              	
                Fitch
                  Rating

                 

              	
                S&P
                  Rating

                 

              	
                Moody’s
                  Rating

                 

              
	
                4.0%

                 

              	
                Lower
                  than
                  BBB- or unrated

                 

              	
                Lower
                  than
                  BBB- or unrated

                 

              	
                Lower
                  than
                  Baa3 or unrated

                 

              
	
                8.0%

                 

              	
                BBB-
                  or
                  higher and lower than A-

                 

              	
                BBB-
                  or
                  higher and lower than A-

                 

              	
                Baa3
                  or
                  higher and lower than A3

                 

              
	
                12.0%

                 

              	
                A-
                  or
                  higher

                 

              	
                A-
                  or
                  higher

                 

              	
                A3
                  or
                  higher

                 

              

      

      The
        Allowable
        Percentage for an Obligor shall correspond to the rating of its long-term
        senior
        unsecured debt by Fitch, S&P and Moody’s as set forth above. If the
        Obligor’s rating falls within different levels by S&P, Moody’s and Fitch,
        the Allowable Percentage corresponding to the lower of the two highest ratings
        shall apply. If the long-term senior unsecured debt rating of an Obligor
        is not
        rated by at least two of S&P, Moody’s and Fitch, then the Allowable
        Percentage for such Obligor shall be 4.0%.

       

      “Conduit
        Investor”
means
        Starbird
        Funding Corporation and any party added as a Conduit Investor pursuant to
        Section 12.3
        or designated as a
        Conduit Investor in the applicable Assignment Agreement.

       

      “Contract”
means,
        with
        respect to any Receivable, the invoices, transportation, storage or other
        service agreements, or other writings pursuant to which such Receivable arises
        or which evidences such Receivable.

       

      “CP
        Rate”
means,
        with
        respect to each Accrual Period, the sum of (a): 

       

      (i)
 with
        respect to any
        Investor Interest funded by Starbird, if and to the extent such Conduit Investor
        funds the Purchase or maintenance of its Investor Interest by the issuance
        of
        Commercial Paper during such Accrual Period, a per annum rate equal to the
        rate
        or, if more than one rate, the weighted average of the rates, determined
        by
        converting to an interest-bearing equivalent rate per annum the discount
        rate
        (or rates) at which Commercial Paper of such Conduit Investor or its Funding
        Source on each day during such period have been sold by any placement agent
        or
        commercial paper dealer selected by such Conduit Investor or Funding Source,
        plus
        (iii) to the
        extent not reflected in the rate described in clause (ii) above, applicable
        commissions and charges charged by such placement agent or commercial paper
        dealer with respect to such Commercial Paper, expressed as a percentage of
        such
        face amount and converted to an interest-bearing equivalent rate per annum
        (but
        not in excess of 0.05% per annum),
plus
        (iv) certain
        documentation and transaction costs directly associated with the issuance
        of
        such Commercial Paper, as are customarily charged by such Conduit Investor
        or
        Funding Source to its customers in similar transactions, plus
        (v) costs of other
        related borrowings by such Conduit Investor or Funding Source, including
        borrowings to fund small or odd dollar amounts that are not easily accommodated
        in the commercial paper market, expressed as a percentage of the face amount
        of
        such Commercial Paper and converted to an interest-bearing equivalent rate
        per
        annum;
        provided,
that
        if any
        component of such rate is a discount rate, in calculating the CP Rate, such
        Conduit Investor shall for such component use the rate resulting from converting
        such discount rate to an interest bearing equivalent rate per annum;
        or

       

      (ii) for
        any Investor
        Interest owned by a Conduit Investor party to this Agreement pursuant to
        a
        Joinder Agreement, the “CP Rate” set forth in such Joinder
        Agreement;

       

      plus
        (b) the Applicable
        Margin.

       

      “Credit
        and
        Collection Policy”
means
        Servicer’s
        Credit and Collection Policy applicable to the Receivables existing on the
        date
        hereof and summarized in Exhibit IX
        hereto, as
        modified from time to time in accordance with this Agreement.

       

      “Current
        Month
        Net Receivables Pool Balance”
means,
        for any
        day during a Monthly Period, (i) the Net Receivables Pool Balance computed
        at
        the end of the prior Monthly Period, plus (ii) the aggregate Original Balances
        of all Eligible Receivables which were created during such Monthly Period,
        but
        excluding any Carryback Receivables for such Monthly Period, minus (iii)
        the
        aggregate amount of Collections received during such Monthly Period in respect
        of Receivables described in clause (i)
        or (ii);
provided
        that for the
        September, 2006 Monthly Period, the Original Balances of Eligible Receivables
        which were first created in August, 2006 after the Initial Cutoff Date shall
        also be included in the amount determined pursuant to clause (ii).

       

      “Daily
        Report”
means,
        with
        respect to a Daily Settlement Date, a report, in substantially the form of
        Exhibit XII
        hereto
        (appropriately completed), furnished by Servicer to the Program Agent and
        the
        Managing Agents on the next Business Day pursuant to Section 8.5,
        which shall,
        among other things, provide a computation of (i) the Current Month Net
        Receivables Pool Balance for the Business Day immediately preceding such
        Daily
        Settlement Date (ii) except in the Daily Report for the last Daily Settlement
        Date in respect of a Monthly Period, the Estimated Current Month Net Receivables
        Pool Balance for such Daily Settlement Date, and (iii) the cumulative
        Collections for the related Monthly Period.

       

      “Daily
        Settlement Date”
means,
        with
        respect to a Monthly Period, each Business Day commencing with the Business
        Day
        immediately following the Cash Receipt Date in such Monthly Period to and
        including the first Business Day of the next following Monthly
        Period.

       

      “Default
        Fee”
means
        with
        respect to any amount due and payable by Seller (or required to be deposited
        by
        Servicer) in respect of any Aggregate Unpaids, an amount equal to interest
        on
        any such unpaid Aggregate Unpaids at a rate per annum equal to 2.0% plus
        the
        Prime Rate.

       

      “Default
        Ratio”
means,
        for any
        Monthly Period, the average of the ratios (each expressed as a percentage)
        for
        such Monthly Period and the two immediately preceding Monthly Periods of
        (a) the
        sum of (i) the aggregate Outstanding Balance of all Receivables as to which,
        at
        as of the last day of the applicable Monthly Period, any payment, or part
        thereof remained unpaid for thirty-one (31) or more days from the original
        due
        date for such payment and sixty (60) days or less from such original due
        date,
        and (ii) without duplication, the aggregate Outstanding Balance of all
        Receivables which became Charged-Off Receivables during such Monthly Period,
        determined immediately prior to the time such Receivable became a Charged-Off
        Receivable (provided in either such case that any portion of the Outstanding
        Balance of such Receivables representing a net credit balance shall be deemed
        to
        be $0), divided by
        (b) the aggregate
        Original Balance of all Receivables originated and billed during the Monthly
        Period which ended two Monthly Periods prior to such Monthly
        Period.

       

      “Defaulted
        Receivable”
means
        a
        Receivable (a) as to which any payment, or part thereof, remains unpaid for
        thirty-one (31) or more days from the original due date for such payment
        or (b)
        is a Charged-Off Receivable; provided
        that any portion
        of the Outstanding Balance of any such Receivable representing a net credit
        balance shall be deemed to be $0.

       

      “Delinquency
        Ratio”
means,
        for any
        Monthly Period, a ratio (expressed as a percentage) equal to (i) the aggregate
        Outstanding Balance of all Delinquent Receivables divided by
        (ii) the aggregate
        Outstanding Balance of all Receivables, each as of the last day of such Monthly
        Period.

       

      “Delinquent
        Receivable”
means
        a
        Receivable, other than a Defaulted Receivable, as to which any payment, or
        part
        thereof, remains unpaid for one (1) Business Day or more from the original
        due
        date for such payment; provided
        that any portion
        of the Outstanding Balance of any such Receivable representing a net credit
        balance shall be deemed to be $0.

       

      “Dilution
        Horizon Ratio”
means,
        for any
        Monthly Period, a fraction, the numerator of which equals the aggregate Original
        Balance of all Receivables originated during such Monthly Period, and the
        denominator of which equals the sum of the aggregate Outstanding Balance
        of
        Receivables as of the end of such Monthly Period.

       

      “Dilution
        Ratio”
means,
        for any
        Monthly Period, a ratio (expressed as a percentage), calculated as of the
        last
        day of such Monthly Period, equal to (i) the aggregate amount of Dilutions
        which
        occurred during such Monthly Period divided by
        (ii) the aggregate
        Outstanding Balance of Receivables at the end of the immediately preceding
        Monthly Period.

       

      “Dilution
        Reserve”
means,
        for any
        Monthly Period, an amount equal to the product of (a) the Net Receivable
        Pool
        Balance as of end of such Monthly Period, times (b) the Dilution Reserve
        Percentage for such Monthly Period.

       

      “Dilution
        Reserve Percentage”
means,
        for any
        Monthly Period, a percentage calculated in accordance with the following
        formula:

       

      DRP
        = [(SF x ED) +
        [(DS - ED) x (DS/ED)]] x DHR

       

      where:

       

      
        	 	
                DHR

              	
                =

              	
                the
                  Dilution
                  Horizon Ratio for such Monthly
                  Period;

              

      

      
        	 	
                DRP
                  

              	
                =

              	
                the
                  Dilution
                  Reserve Percentage for such Monthly
                  Period

              

      

      
        	 	
                DS

              	
                =

              	
                a
                  dilution
                  spike equal to the highest Dilution Ratio occurring during the
                  12 most
                  recent Monthly Periods ending with (and including) such Monthly
                  Period;

              

      

      
        	 	
                ED

              	
                =

              	
                the
                  average
                  of the Dilution Ratios for the 12 most recent Monthly Periods ending
                  with
                  (and including) such Monthly Period;
                  and

              

      

      
        	 	
                SF

              	
                =

              	
                the
                  Stress
                  Factor.

              

      

      

      “Dilutions”
means,
        at any
        time, the aggregate amount of reductions or cancellations of Receivables
        described in clause (i)
        of Section 2.8(a).

       

      “El
        Paso
        Entity”
has
        the meaning
        set forth in Section 7.1(i).

       

      “Eligible
        Receivable”
means,
        at any
        time, a Receivable that (a) satisfies all of the following criteria, or (b)
        has
        been approved in writing by the Program Agent for inclusion as an Eligible
        Receivable: 

       

      (i)  which
        was
        originated in the ordinary course of the Originator’s business,

       

      (ii)  which
        is
        denominated and payable only in United States dollars in the United States
        and,
        if applicable, for which payment is guaranteed in United States
        dollars,

       

      (iii)  the
        Obligor of
        which maintains a place of business in the United States,

       

      (iv)  which
        is an
“account” or a “payment intangible” within the meaning of Section 9-102 of
        the UCC of all applicable jurisdictions,

       

      (v)  which
        is not a
        Defaulted Receivable,

       

      (vi)  the
        Obligor of
        which is not the Obligor of any Receivable which, in the preceding 12 months
        (A)
        became a Defaulted Receivable, unless such Obligor becomes current and is
        deemed
        an acceptable customer in accordance with the applicable Credit and Collection
        Policy, or (B) was referred to a third-party collection agency or other entity
        for collection,

       

      (vii)  the
        Obligor of
        which is not in bankruptcy, reorganization, insolvency or similar
        proceedings,

       

      (viii)  which
        by its terms
        is due and payable within 15 days of the original invoice date therefor and
        has
        not had its payment terms extended or rewritten or otherwise altered in a
        manner
        that would adversely affect the collectibility of such Receivable,

       

      (ix)  the
        Obligor of
        which is not (A) an Affiliate of the Originator, or (B) the United States
        federal government, a department or agency thereof or other United States
        federal governmental authority,

       

      (x)  which
        arises under
        a Contract which, together with such Receivable, is in full force and effect
        and
        constitutes the legal, valid and binding obligation of the related Obligor
        enforceable against such Obligor in accordance with its terms, except as
        limited
        by bankruptcy, insolvency or other similar laws,

       

      (xi)  which
        arises under
        a Contract which does not contain (i) a default which is triggered solely
        by a
        credit downgrade of the Originator or any other El Paso Entity or (ii) a
        confidentiality provision that purports to restrict the ability of any Investor
        to exercise its rights under this Agreement, including its right to review
        the
        Contract,

       

      (xii)  which
        (whether or
        not invoiced to the applicable Obligor at the time) arises under a Contract
        that
        contains an obligation to pay a specified sum of money, contingent only upon
        the
        sale or delivery of goods or services by the Originator,

       

      (xiii)  the
        Originator has
        not failed to sell or deliver or cause to be sold and delivered goods or
        services which failure would give rise to a claim by such Obligor against
        the
        Originator for a payment pursuant to the applicable Contract,

       

      (xiv)  to
        the extent it
        arises solely from the sale of goods or the provision of services to the
        related
        Obligor by the Originator and not by any other Person (in whole or in
        part),

       

      (xv)  which
        arises solely
        from (i) transportation reservation or storage reservation charges as a part
        of
        firm contact obligations or (ii) Additional Amounts,

       

      (xvi)  which
        has been
        fully earned by the Originator and, without limiting the generality of the
        foregoing, as to which the Originator has satisfied and fully performed all
        obligations on its part with respect to such Receivable required to be fulfilled
        by it, and no further action is required to be performed by any Person with
        respect thereto other than payment thereon by the applicable
        Obligor,

       

      (xvii)  which,
        together
        with the Contract related thereto, does not contravene any law, rule or
        regulation applicable thereto (including any law, rule and regulation relating
        to truth in lending, fair credit billing, fair credit reporting, equal credit
        opportunity, fair debt collection practices and privacy) and with respect
        to
        which no part of the Contract related thereto is in violation of any such
        law,
        rule or regulation,

       

      (xviii)  which
        Receivable,
        the origination thereof and the related Contract, satisfy in all material
        respects all applicable requirements of the applicable Credit and Collection
        Policy,

       

      (xix)  as
        to which the
        related Obligor has been directed to remit Collections to a Blocked Account
        or a
        Lock-Box,

       

      (xx)  which
        is not
        subject to any present right of rescission, set-off (including rights of
        set-off
        by a governmental entity of a tax liability), counterclaim, any other defense
        (including defenses arising out of violations of usury laws) of the applicable
        Obligor against the Originator, including the right to set-off any amounts
        owed
        to any Affiliate of the applicable Obligor (it being understood that only
        a
        portion of a Receivable equal to the amount of such partial rescission, set-off,
        counterclaim or defense, if the amount of such partial rescission, set-off,
        counterclaim or defense can be quantified, shall be deemed not to be an Eligible
        Receivable) or any other Adverse Claim not contemplated by the Transaction
        Documents,

       

      (xxi)  the
        Originator of
        which owes no amounts to any Affiliate of the Obligor (it being understood
        that
        only a portion of a Receivable equal to such amount owed to any such Affiliate
        shall be deemed not to be an Eligible Receivable),

       

      (xxii)  all
        right, title
        and interest to and in which has been validly transferred (A) by the Originator
        directly to Finance LLC under and in accordance with the First Tier Sale
        Agreement, and (B) and by Finance LLC directly to Seller under and in accordance
        with the Second Tier Sale Agreement, and Seller has good and marketable title
        thereto free and clear of any Adverse Claim not contemplated by the Transaction
        Documents,

       

      (xxiii)  as
        to which, no El
        Paso Entity that is a party to the Contract under which such Receivable arose
        has knowledge or has received notice that an event which, with the giving
        of
        notice or the passage of time, or both, would constitute an event of default
        (as
        defined in the related Contract under which such Receivable arose) or other
        mature default under such Contract has occurred and is continuing,

       

      (xxiv)  with
        respect to
        which, and with respect to the Contract under which such Receivable arose,
        the
        Originator and each applicable Seller Party has complied in all material
        respects with the Credit and Collection Policy,

       

      (xxv)  which,
        if unbilled,
        remains unbilled on the 10th
        Business Day of
        the calendar month following the calendar month in which such Receivable
        was
        created (or such later date to which the Program Agent, acting with the consent
        or at the direction of the Required Committed Investors, shall have consented
        with respect to any particular Receivable or group of Receivables),
        and

       

      (xxvi)  as
        to which the
        Program Agent has not notified Seller that the Program Agent or the Required
        Committed Investors have determined, in their reasonable judgment based on
        publicly available information relating to the creditworthiness of the Obligor,
        that such Receivable or class of Receivables is not acceptable as an Eligible
        Receivable.

       

      “Estimated Current
        Month
        Net Receivables Pool Balance”
means,
        for any
        day during a Monthly Period, an estimate of the Current Month Net Receivables
        Pool Balance computed for such day, prepared by Servicer on a reasonable
        basis
        based on Contracts in effect at the time such estimate was
        prepared.

       

      “Federal
        Bankruptcy Code”
means
        Title 11 of
        the United States Code entitled “Bankruptcy,” as amended and any successor
        statute thereto.

       

      “Federal
        Funds
        Effective Rate”
means,
        for any
        day, the interest rate per annum equal to (a) the weighted average of the
        rates
        on overnight federal funds transactions with members of the Federal Reserve
        System arranged by federal funds brokers, as published for such day (or,
        if such
        day is not a Business Day, for the preceding Business Day) by the Federal
        Reserve Bank of New York in the Composite Closing Quotations for U.S. Government
        Securities; or (b) if such rate is not so published for any day which is
        a
        Business Day, the average of the quotations at approximately 10:30 a.m. (New
        York time) for such day on such transactions received by the Reference Bank
        from
        three federal funds brokers of recognized standing selected by it.

       

      “Fee
        Letter”
means
        each letter
        agreement among Seller, one or more Investors and one or more Managing Agents,
        as each such letter agreement may be amended or modified and in effect from
        time
        to time.

       

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

       

      “Finance
        Charges”
means,
        with
        respect to a Contract, any finance, interest, late payment charges or similar
        charges owing by an Obligor pursuant to such Contract.

       

      “First
        Tier Sale
        Agreement”
means
        that
        certain First Tier Receivables Sale Agreement, dated as of the date hereof,
        between the Originator and Finance LLC.

       

      “Finance
        LLC”
means
        Tennessee
        Gas Pipeline Finance, L.L.C., a Delaware limited liability company.

       

      “Fitch”
means
        Fitch, Inc.
        or any successor to such rating agency.

       

      “Force
        Majeure
        Event”
means,
        on any
        date with respect to a Person, that such Person, by reason of force majeure,
        including action
        or inaction
        of governmental, civil or military authority, war, riot, act of terrorism,
        fire,
        strike, lockout or other labor dispute, flood, earthquake or other natural
        disaster, breakdown of public or private or common carrier communications
        or
        transmission facilities and equipment failure,
        is unable to
        perform an obligation, but only to the extent that (i) such event or
        circumstance is beyond the control of such Person and (ii) such Person has
        taken
        commercially reasonable precautions to anticipate, and cannot with reasonable
        diligence overcome, such event or circumstance.

       

      “Funding
        Source”
means,
        with
        respect to a Conduit Investor, any financing conduit from which (either directly
        or through intermediate special purpose entities) such Conduit Investor receives
        funding for the making and maintenance of its Capital in the Investor
        Interest.

       

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

       

      “Group
        Purchase
        Limit”
means,
        for each
        Investor Group, the sum of the Commitments of the Committed Investors in
        such
        Investor Group.

       

      “Incremental
        Purchase”
means
        a purchase
        of one or more Investor Interests, including the initial purchase of Investor
        Interest, which increases the total outstanding Aggregate Capital
        hereunder.

       

      “Indebtedness”
of
        a Person means
        such Person’s (i) obligations for borrowed money, (ii) obligations representing
        the deferred purchase price of property or services (other than accounts
        payable
        arising in the ordinary course of such Person’s business), (iii) obligations of
        another Person of the types described in the foregoing clauses (i) and (ii),
        whether or not assumed, secured by liens or payable out of the proceeds or
        production from property now or hereafter owned or acquired by such Person,
        and
        (iv) capitalized lease obligations.

       

      “Independent
        Manager”
means
        a manager
        of Seller who satisfies the requirements for an “Independent Manager” as set
        forth in Seller’s limited liability company agreement as in effect on the date
        of this Agreement.

       

      “Initial
        Cutoff
        Date”
has
        the meaning
        set forth in the First Tier Sale Agreement.

       

      “Investor”
means
        any Conduit
        Investor or Committed Investor, as applicable.

       

      “Investor
        Interest”
means,
        at any
        time, an undivided percentage ownership interest (computed as set forth below
        and based on the amount of Capital allocated thereto pursuant to the terms
        and
        conditions hereof), which is intended to constitute a beneficial interest,
        in
        (i) each Receivable arising prior to the time of the most recent computation
        or
        recomputation of such undivided interest, (ii) all Related Security with
        respect
        to each such Receivable, and (iii) all Collections with respect to, and other
        proceeds of, each such Receivable. Each such undivided percentage interest
        shall
        equal:

       

      
        	
                C

              
	
                NRPB
                  - AR +
                  CAA

                 

              

      

      where:

       

      C = the
        Capital of such
        Investor Interest

       

      NRPB = the
        Net Receivable
        Pool Balance

       

      AR = the
        Aggregate
        Reserves

       

      CAA = the
        Collection
        Account Amount

       

      Such
        undivided
        percentage ownership interest shall be initially computed on its date of
        purchase. Thereafter, until the Amortization Date, each Investor Interest
        shall
        be automatically recomputed (or deemed to be recomputed) on each day prior
        to
        the Amortization Date. The variable percentage represented by any Investor
        Interest as computed (or deemed recomputed) as of the close of the Business
        Day
        immediately preceding the Amortization Date shall remain constant at all
        times
        thereafter. The Investor Interest shall be senior to the Junior Interest,
        in
        accordance with the terms and conditions of this Agreement.

       

      “Investor
        Group”
means
        (i) a
        Conduit Investor, one or more Committed Investors and their related Managing
        Agent or (ii) one or more Committed Investors and the related Managing
        Agent.

       

      “Joinder
        Agreement”
means
        a joinder
        agreement substantially in the form set forth in Exhibit VIII
        hereto pursuant to
        which a new Conduit Investor become a party to this Agreement.

       

      “Junior
        Interest”
means,
        at any
        time, an undivided percentage ownership interest, which is intended to
        constitute a beneficial interest, issued by Seller to Finance LLC pursuant
        to
        the Second Tier Sale Agreement, in (i) each Receivable arising prior to the
        time
        of the most recent computation or recomputation of the Investor Interest,
        (ii)
        all Related Security with respect to each such Receivable, and (iii) all
        Collections with respect to, and other proceeds of, each such Receivable,
        representing the interest therein not constituting the Investor Interest.
        The
        Junior Interest shall be junior and subordinate to the Investor Interest,
        in
        accordance with the terms and conditions of this Agreement.

       

      “LIBO
        Rate”
means,
        with
        respect to each Accrual Period, the sum of (a) (i) the interest rate per
        annum
        shown on the BBAM page of the Bloomberg Financial Markets Services Display
        Screen or any successor page as the average British Bankers’ Association
        Interest Settlement Rate for deposits in United States dollars with a period
        comparable to such Accrual Period and for delivery on the first day of such
        Accrual Period, as of the close of business (London time) two Business Days
        prior to the first day of such Accrual Period, or (ii) if the screen described
        in clause (i) above shall cease to be publicly available, the interest rate
        per
        annum shown on page 3750 of the Telerate screen or any successor page as
        the
        composite offered rate for London interbank deposits in United States dollars
        with a period comparable to such Accrual Period at 11:00 a.m. (London time)
        two
        Business Days prior to the first day of such Accrual Period, or (iii) if
        the
        rates in clauses (i) and (ii) shall cease to be publicly available, the average
        interest rate per annum offered to the Program Agent in the interbank market
        for
        dollar deposits of amounts in funds comparable to the principal amount of
        the
        Investor Interest to which such LIBO Rate is to be applicable with maturities
        comparable to the Accrual Period for which such LIBO Rate will apply as of
        approximately 1:00 p.m. (New York, New York time) two Business Days prior
        to the
        commencement of such Accrual Period plus (b) the Applicable Margin.

       

      “Lock-Box”
means
        each United
        States Post Office box to which Obligors remit Collections.

       

      “Loss
        Horizon
        Ratio”
means,
        for any
        Monthly Period, a fraction, the numerator of which equals the aggregate Original
        Balance of Receivables originated during such Monthly Period and the two
        Monthly
        Periods ending immediately prior to such Monthly Period, and the denominator
        of
        which equals the aggregate Outstanding Balance of Receivables as of the end
        of
        such Monthly Period.

       

      “Loss
        Ratio”
means,
        for any
        Monthly Period, the average of the ratios (each expressed as a percentage)
        for
        such Monthly Period and the two immediately preceding Monthly Periods of
        (a)
        aggregate Outstanding Balance of all Receivables which became Defaulted
        Receivables at any time during such Monthly Period, determined in the case
        of
        Charged-Off Receivable immediately prior to the time such Receivable became
        a
        Charged-Off Receivable, divided by
        (b) the aggregate
        Outstanding Balance of Receivables at the end of such Monthly
        Period.

       

      “Loss
        Reserve”
means,
        for any
        Monthly Period, an amount equal to the Loss Reserve Percentage for such Monthly
        Period multiplied by the Net Receivable Pool Balance as of the end of such
        Monthly Period.

       

      “Loss
        Reserve
        Percentage”
means,
        for any
        Monthly Period, the greater of (i) 12.0% or (ii) a percentage calculated
        in
        accordance with the following formula:

       

      LRP
        = SF x DS x
        LHR

       

      where:

       

      
        	 	
                LHR

              	
                =

              	
                the
                  Loss
                  Horizon Ratio for such Monthly
                  Period;

              

      

      
        	 	
                LRP

              	
                =

              	
                the
                  Loss
                  Reserve Percentage for such Monthly
                  Period;

              

      

      
        	 	
                DS

              	
                =

              	
                a
                  default
                  spike equal to the highest Default Ratio occurring during the 12
                  most
                  recent Monthly Periods ending with (and including) such Monthly
                  Period;
                  and

              

      

      
        	 	
                SF

              	
                =

              	
                the
                  Stress
                  Factor.

              

      

      

      “Managing
        Agent”
means,
        as to any
        Investor Group, the agent named on the signature pages hereto as such Investor
        Group’s Managing Agent.

       

      “Material
        Adverse Effect”
means
        a material
        adverse effect on (i) the financial condition of any Seller Party, (ii) the
        ability of any Seller Party to perform its obligations under this Agreement
        or
        any other Transaction Document, (iii) the legality, validity or enforceability
        of this Agreement or any other Transaction Document, (iv) any Investor’s
        interest in the Receivables generally or in any significant portion of the
        Receivables, the Related Security or the Collections with respect thereto,
        or
        (v) the collectibility (provided that, for purposes of the use of the term
        Material Adverse Effect in Section 9.1(h),
        collectibility
        shall be deemed not to encompass the credit risk of Obligors) shall not of
        the
        Receivables generally or of any material portion of the
        Receivables.

       

      “Mid-Month
        Determination Date”
means,
        with
        respect to a Monthly Period, the 12th
        Business Day of
        such Monthly Period.

       

      “Mid-Month
        Report”
means
        a report,
        in substantially the form of Exhibit XI
        hereto
        (appropriately completed), furnished by Servicer to the Managing Agents pursuant
        to Section 8.5,
        which shall,
        among other things, provide a computation of the Current Month Net Receivables
        Pool Balance for the Mid-Month Determination Date and the Estimated Current
        Month Net Receivables Pool Balance for each day in such Monthly Period after
        the
        Mid-Month Determination Date.

       

      “Mid-Month
        Report Date”
means,
        with
        respect to a Monthly Period, the 14th
        Business Day of
        such Monthly Period.

       

      “Monthly
        Period”
means
        each
        calendar month commencing September, 2006; provided
        that, for purposes
        of the computation of the Delinquency Ratio, the Dilution Horizon Ratio,
        the
        Dilution Ratio, the Dilution Reserve Percentage, the Loss Horizon Ratio,
        the
        Loss Ratio, the Loss Reserve Percentage and the Turnover Rate, each calendar
        month prior to September, 2006 shall be deemed to be a Monthly Period and
        such
        ratios, percentages and rates shall be computed pro forma as though the
        Transaction Documents had then been in effect and the Initial Cutoff Date
        had
        occurred prior thereto.

       

      “Monthly
        Report”
means
        a report,
        in substantially the form of Exhibit X
        hereto
        (appropriately completed), furnished by Servicer to the Managing Agents pursuant
        to Section 8.5.

       

      “Monthly
        Report
        Date”
means,
        with
        respect to a Monthly Period, the third Business Day of the following Monthly
        Period.

       

      “Monthly
        Settlement Date”
means,
        with
        respect to a Monthly Period, the fifth Business Day of the immediately following
        Monthly Period.

       

      “Moody’s”
means
        Moody’s
        Investors Service, Inc. or any successor to such rating agency.

       

      “Net
        Outstanding
        Balance”
of
        any Receivable
        at any time means the Outstanding Balance, excluding any portion thereof
        representing an Additional Amount.

       

      “Net
        Receivable
        Pool Balance” means,
        at any time,
        (a) the aggregate Net Outstanding Balance of all Eligible Receivables at
        such time, minus
        (b) the sum
        of (i) the aggregate amount by which the Net Outstanding Balance of all
        Eligible Receivables of each Obligor and its Affiliates exceeds the
        Concentration Limit for such Obligor at such time, (ii)
        the aggregate
        amount by which the Net Outstanding Balance of all Eligible Receivables of
        Specified Governmental Obligors exceeds 5.0% (or such other percentage which
        the
        Program Agent, at the direction or with the consent of the Required Committed
        Investors, may, upon not less than three Business Days' notice to Seller
        and
        Servicer, specify) of the Net Outstanding Balance of all Eligible Receivables
        at
        such time, and
        (iii) the
        aggregate outstanding balance of Unapplied Cash and Credits as of the close
        of
        business on the immediately preceding Business Day.

       

      “Obligations”
shall
        have the
        meaning set forth in Section 2.1.

       

      “Obligor”
means
        a Person
        obligated to make payments pursuant to a Contract.

       

      “Original
        Balance”
means,
        with
        respect to any Receivable, the Outstanding Balance of such Receivable on
        the
        date it was originated.

       

      “Originator”
means
        Tennessee
        Gas Pipeline Company, individually, in its capacity as seller under the First
        Tier Sale Agreement.

       

      “Outstanding
        Balance”
of
        any Receivable
        at any time means the then outstanding principal balance thereof as of the
        close
        of business on the immediately preceding Business Day.

       

      “Paribas”
has
        the meaning
        set forth in the preamble to this Agreement.

       

      “Participant”
has
        the meaning
        set forth in Section 12.2.

       

      “Periodic
        Reports”
means,
        at any
        time, the reports required to be delivered by Servicer under Section 8.5.

       

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

       

      “Potential
        Amortization Event”
means
        an event
        which, with the passage of time or the giving of notice, or both, would
        constitute an Amortization Event.

       

      “Prime
        Rate”
means,
        for any
        day, for any Managing Agent, a per annum rate equal to the higher of (i)
        the
        rate of interest per annum determined by such Managing Agent from time to
        time
        in its sole discretion as its prime commercial lending rate for such day
        for
        United States Dollar loans made in the United States and (ii) the Federal
        Funds
        Effective Rate for such day plus
        .50%. The prime
        commercial lending rate is not necessarily the lowest rate that a Managing
        Agent
        is charging any corporate customer.

       

      “Pro
        Rata
        Share”
means,
        (a) for
        each Committed Investor, the Commitment of such Committed Investor, divided
        by
        the Program Limit,
        adjusted as necessary to give effect to any assignments pursuant to Article XII
        and (b) for each
        Conduit Investor, an amount equal to the aggregate Commitments of each Committed
        Investor which is a member of such Conduit Investor’s Investor Group,
divided
        by
        the Program Limit,
        adjusted as necessary to give effect to any assignments pursuant to Article XII.

       

      “Program
        Limit”
means
        $50,000,000, or such lesser amount as may from time be specified by not less
        than ten (10) Business Days’ prior written notice by Servicer to the Program
        Agent and Seller from time to time. Any reduction of the Program Limit shall
        be
        irrevocable upon such notice being given and shall not be subject to
        reinstatement and each partial reduction of the Program Limit shall be in
        an
        amount equal to $1,000,000 or an integral multiple thereof.

       

      “Purchase
        Notice”
has
        the meaning
        set forth in Section 1.2.

       

      “Purchase
        Price”
means,
        with
        respect to any Incremental Purchase of an Investor Interest, the amount paid
        to
        Seller for such Investor Interest which shall not exceed the least of the
        amount
        requested by Seller in the applicable Purchase Notice, the unused portion
        of the
        Program Limit on the applicable purchase date and the excess, if any, of
        the Net
        Receivable Pool Balance (less the Aggregate Reserves) on the applicable purchase
        date over the aggregate outstanding amount of Aggregate Capital determined
        as of
        the date of the most recent Monthly Report, taking into account such proposed
        Incremental Purchase.

       

      “Purchasing
        Committed Investor”
has
        the meaning
        set forth in Section 12.1(b).

       

      “Rating
        Agencies”
means
        S&P and
        Moody’s.

       

      “Receivable”
means
        (i) all
        indebtedness and other obligations owed to Seller or the Originator (at the
        time
        it arises, and prior to giving effect to the transfers and conveyances thereof
        under the applicable Receivables Sale Agreements or hereunder), including
        any
        indebtedness, obligation or interest constituting an account or payment
        intangible, to the extent such indebtedness and other obligations arise in
        connection with reservation changes for the daily transportation or storage
        of
        natural gas by the Originator and without regard to whether the applicable
        Obligor shall have been invoiced therefor and (ii) the Additional Amounts,
        and
        includes the obligation to pay any Finance Charges with respect thereto,
        provided
        that
        the term
“Receivable” shall not include any such indebtedness or obligations that, (A)
        prior to such indebtedness or obligations being transferred and conveyed
        to
        Finance LLC under the First Tier Sale Agreement, were owed to the Originator
        by
        any of its Affiliates from time to time, (B) prior to such indebtedness or
        obligations being transferred and conveyed to Buyer under the Second Tier
        Sale
        Agreement, the Originator shall have notified the Program Agent in writing
        are
        not Eligible Receivables, or (C) is an Excluded Receivable (as defined in
        the
        First Tier Sale Agreement). Indebtedness and other rights and obligations
        arising from any one transaction, including indebtedness and other rights
        and
        obligations represented by an individual invoice, shall constitute a Receivable
        separate from a Receivable consisting of the indebtedness and other rights
        and
        obligations arising from any other transaction; provided that any indebtedness,
        rights or obligations referred to in the immediately preceding sentence shall
        be
        a Receivable regardless of whether the account debtor, Seller or the Originator
        treats such indebtedness, rights or obligations as a separate payment
        obligation.

       

      “Records”
means,
        with
        respect to any Receivable, 

       

      (i) all
        Contracts; and

       

      (ii) (in
        each case
        solely to the extent of the rights therein (if any) of the Originator, Finance
        LLC or Seller, as applicable) all other documents, books, records and other
        information (including computer programs, tapes, disks, punch cards, data
        processing software and related property and rights) relating to such
        Receivable, any Related Security therefor and the related Obligor.

       

      “Reference
        Bank”
means
        Paribas or
        such other bank as the Program Agent shall designate.

       

      “Regulatory
        Change”
has
        the meaning
        set forth in Section 10.2.

       

      “Reinvestment”
has
        the meaning
        set forth in Section 2.2(c).

       

      “Related
        Security”
means,
        with
        respect to any Receivable:

       

      (B)  all
        other security
        interests or liens and property subject thereto from time to time, if any,
        purporting to secure payment of such Receivable, whether pursuant to the
        Contract related to such Receivable or otherwise, together with all financing
        statements and security agreements describing any collateral securing such
        Receivable,

       

      (C)  all
        guaranties,
        letters of credit, insurance and other agreements or arrangements of whatever
        character from time to time supporting or securing payment of such Receivable
        whether pursuant to the Contract related to such Receivable or
        otherwise,

       

      (D)  all
        Records related
        to such Receivable,

       

      (E)  all
        of Seller’s
        right, title and interest in, to and under each Sale Agreement, and

       

      (F)  all
        proceeds of any
        of the foregoing.

       

      “Required
        Collection Account Amount”
shall
        mean, for
        each Daily Settlement Date, an amount (which shall not be less than zero)
        equal
        to (i) the aggregate amount which will be payable on the next following Monthly
        Settlement Date pursuant to clause
        (i)
        of Section 2.4(c)
        (determined
        without regard to any occurrence of the Amortization Date) plus (ii) the
        excess, if any, on such Daily Settlement Date of (A) the sum of (x) the
        Aggregate Capital plus
        (y) the Aggregate
        Reserves over (B) the Net Receivable Pool Balance (calculated, with respect
        to
        Receivables acquired by Seller during the related Monthly Period, based on
        the
        Estimated Current Month Net Receivables Pool Balance for such Daily Settlement
        Date).

       

      “Required
        Committed Investors”
means,
        at any
        time, Committed Investors whose Pro Rata Shares are equal to or greater than
        66
        2/3%.

       

      “Responsible
        Officer”
means,
        with
        respect to any Person, its chief financial officer, the chief accounting
        officer, the senior vice president-finance, the treasurer, the controller
        or any
        other officer whose primary duties are similar to the duties of any of the
        previously listed officers.

       

      “Sale
        Agreement”
means
        each of the
        First Tier Sale Agreement and the Second Tier Sale Agreement.

       

      “S&P”
means
        Standard
& Poor’s Ratings Group or any successor to such rating agency.

       

      “Second
        Tier Sale
        Agreement”
means
        that
        certain Second Tier Receivables Sale Agreement, dated as of the date hereof,
        between Finance LLC and Seller.

       

      “Seller”
has
        the meaning
        set forth in the preamble to this Agreement.

       

      “Seller
        Parties”
has
        the meaning
        set forth in the preamble to this Agreement.

       

      “Servicer”
means
        at any time
        the Person or Persons (which may be the Program Agent) then authorized pursuant
        to Article VIII
        to service,
        administer and collect Receivables.

       

      “Servicer
        Expenses”
means
        the
        reasonable out-of-pocket costs and expenses incurred by Servicer in connection
        with servicing, administering and collecting the Receivables.

       

      “Servicer
        Fee”
has
        the meaning
        set forth in Section 8.7.

       

      “Special
        Adjustment Amount”
means,
        with
        respect to a Business Day, the amount required to be deposited by Seller
        for
        such Business Day into the Collection Account pursuant to Section 2.2(b)
        or Section 2.2(c).

       

      “Specified
        Governmental Obligor”
means
        any state
        or municipal or other local government, any subdivision, department or agency
        of
        a state or municipal or other local government or any state or municipal
        or
        other local governmental authority.

       

      “Starbird”
has
        the meaning
        set forth in the preamble to this Agreement.

       

      “Stress
        Factor”
means,
        at any
        time, 2.0.

       

      “Subsidiary”
means,
        as to any
        Person, a corporation, partnership or other entity of which more than 50%
        of the
        outstanding shares of stock or other ownership interests having ordinary
        voting
        power (other than stock or such other ownership interests having such power
        only
        by reason of the happening of a contingency) to elect directors or other
        managers of such corporation, partnership or other entity are at the time
        owned,
        directly or indirectly, through one or more Subsidiaries of such Person,
        by such
        Person.

       

      “Support
        Facility”
means
        this
        Agreement and any agreement or instrument executed by any Funding Source
        with or
        for the benefit of a Conduit Investor.

       

      “Termination
        Date”
has
        the meaning
        set forth in Section 2.3.

       

      “Termination
        Percentage”
has
        the meaning
        set forth in Section 2.3.

       

      “Transaction
        Documents”
means,
        collectively, this Agreement, each Purchase Notice, each Sale Agreement,
        each
        Blocked Account Agreement, the Fee Letters, and all other instruments, documents
        and agreements executed and delivered in connection herewith.

       

      “Turnover
        Rate”
means,
        for any
        Monthly Period, (i)
        the aggregate
        Outstanding Balance of all Receivables as of the last day of the Monthly
        Period
        ending one Monthly
        Period
        prior to such Monthly
        Period,
        divided by
        (ii) the aggregate
        amount of Collections received during such Monthly
        Period.

       

      “UCC”
means
        the Uniform
        Commercial Code as from time to time in effect in the specified
        jurisdiction.

       

      “Unapplied
        Cash
        and Credits”
means,
        at any
        time, the aggregate amount of Collections or other cash or credits then held
        by
        or for the account of Servicer, the Originator or Seller in respect of the
        payment of Receivables, including prepaid amounts, amounts on deposit in
        an
        unapplied cash account or uncleared payment accounts and unbooked deposits
        at
        such time, but not yet applied to the payment of such Receivables.

       

      “Yield”
means
        (a) for
        each respective Accrual Period relating to an Investor Interest of a Conduit
        Investor, other than an Investor Interest as to which Yield is being computed
        pursuant to Article IV,
        an amount equal
        to the product of the applicable CP Rate multiplied
        by
        the Capital of
        such Investor Interest for each day elapsed during such Accrual Period,
        annualized on a 360 day basis, and (b) for each respective Accrual Period
        relating to any other Investor Interest, an amount equal to the product of
        the
        applicable Bank Rate for such Investor Interest multiplied
        by
        the Capital of
        such Investor Interest for each day elapsed during such Accrual Period,
        annualized on a 360 day basis (or a 365 or 366 day basis, as applicable,
        in the
        case of the Prime Rate).

       

      “Yield
        and
        Servicer Fee Reserve”
means,
        for any
        Monthly Period, an amount equal to the product of (a) the Yield and Servicer
        Fee
        Reserve Percentage for such Monthly Period, multiplied by
        (b) the Net
        Receivable Pool Balance as of the end of such Monthly Period.

       

      “Yield
        and
        Servicer Fee Reserve Percentage”
means,
        for any
        Monthly Period, a percentage calculated in accordance with the following
        formula:

       

      YRP
        = SF x
        (BR+SFR)/12 x TR

       

      where:

       

      
        	 	
                BR

              	
                =

              	
                the
                  Bank Rate
                  (measured as of the end of immediately preceding Monthly Period,
                  or, in
                  the case of the Yield and Servicer Fee Reserve Percentage for the
                  initial
                  Monthly Period, on the date of the initial Incremental
                  Purchase);

              

      

      
        	 	
                SFR

              	
                =

              	
                the
                  Servicer
                  Fee Rate;

              

      

      
        	 	
                SF

              	
                =

              	
                the
                  Stress
                  Factor;

              

      

      
        	 	
                TR

              	
                =

              	
                the
                  Turnover
                  Rate for such Monthly Period; and

              

      

      
        	 	
                YRP

              	
                =

              	
                the
                  Yield and
                  Servicer Fee Reserve Percentage for such Monthly
                  Period.

              

      

      

      Additionally,
        unless otherwise specified herein or in any other Transaction
        Document:

       

      (a) All
        accounting
        terms not specifically defined herein shall be construed in accordance with
        GAAP. All terms used in Article 9 of the UCC in the State of Texas, and not
        specifically defined herein, are used herein as defined in such
        Article 9.

       

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

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