Document:

Exhibit 4.5

 

ESCROW
AND SECURITY AGREEMENT

 

This ESCROW AND SECURITY AGREEMENT (this “Agreement”),
dated as of September 22, 2009, is by and among MXenergy Holdings Inc., a
Delaware corporation (the “Company”), Law Debenture Trust Company of New
York, as the trustee under the Indenture (as defined below) (the “Trustee”),
and Law Debenture Trust Company of New York, as escrow agent and securities
intermediary (in such capacity, together with its successors in such capacity,
the “Escrow Agent”).  Capitalized terms
used herein and not otherwise defined have the meanings assigned to them in the
Indenture (as defined below).

 

WITNESSETH:

 

WHEREAS, pursuant to that certain Amended and
Restated Lock-Up, Support and Voting Agreement, dated as of August 14,
2009 (the “Lock-Up Agreement”), the Company and certain holders of the
Company’s Floating Rate Senior Notes due 2011 (the “Existing Notes”)
have agreed to amend and exchange certain obligations of the Company and
certain of its Subsidiaries (collectively, the “Restructuring”), upon
the terms and subject to the conditions set forth in the Lock-Up Agreement;

 

WHEREAS, pursuant to the Lock-Up Agreement, the
Company commenced an exchange offer (the “Exchange Offer”) to exchange
any and all of the outstanding Existing Notes (excluding Existing Notes owned
by the Company) for consideration including new 13.25% Senior Subordinated
Secured Notes due 2014 of the Company (the “Securities”), upon the terms
and subject to the conditions set forth in that certain Second Amended and
Restated Confidential Offering Memorandum and Consent Solicitation Statement,
dated September 14, 2009, as amended, and in the related Letter of
Transmittal and Consent (collectively, the “Offer Documents”);

 

WHEREAS, in connection with the Exchange Offer, the
Company, certain subsidiaries of the Company and the Trustee have entered into
an Indenture dated as of the date hereof (as amended and supplemented from time
to time, the “Indenture”) pursuant to which the Company is issuing
$67,751,000 aggregate principal amount of the Securities;

 

WHEREAS, as described in the Offer Documents, it is
a condition to the consummation of the Exchange Offer that the Company place in
escrow the Escrow Amount (as defined below) to be held by the Escrow Agent for
the benefit of the Trustee on behalf of the holders of the Securities (the “Secured
Parties”) in the Escrow Account (as defined below) pursuant to the terms of
this Agreement, the Indenture and the Intercreditor Agreement;

 

WHEREAS, the Escrow Agent has established, on behalf
of the Company, a securities account, which is also an escrow account, with
account number 113186 and account name MxEnergy Holdings Inc. 13.25% Senior
Subordinated Secured Notes due 2014 Escrow Account (the “Escrow Account”);
and

 

WHEREAS, the Company, the Trustee and the Escrow
Agent are entering into this Agreement to provide for the control of the Escrow
Account and to perfect the security interest of the Trustee in the Escrow
Account and the financial assets and any free credit balance carried therein as
more fully described in this Agreement.

 

 

NOW, THEREFORE, in consideration of the premises and
the mutual covenants and agreements herein contained, the parties hereto agree
as follow for the express benefit of the Trustee on behalf of the Secured
Parties:

 

1.                                       Initial Escrow Amount; Tax Gross-Up;
Investment of Funds.

 

(a)                                  Deposit of Initial Escrow Amount by the
Company.  On the date hereof, the Company shall
deliver, or shall direct the delivery, to the Escrow Agent cash in an amount
equal to two full-period interest payments payable on the Securities.  The parties agree that the amount of cash
deposited into the Escrow Account on the date hereof shall be
$8,977,007.50.  From and after the date
hereof, the Company shall at all times maintain on deposit in the Escrow
Account an amount equal to, as of any date, the sum of (i) two full-period
interest payments payable on the then outstanding Securities and (ii) the
then applicable Tax Gross-Up Amount (as defined below) (the “Escrow Amount”).

 

(b)                                 Tax Gross-Up. 
Promptly following a determination by the Company that a tax-gross up
payment is required with respect to interest payable on the Securities pursuant
to either (i) the letter agreement dated as of the date hereof between the
Company, on the one hand, and Camulos Loan Vehicle Fund I LP and Camulos Master
Fund LP, on the other hand, or (ii) the letter agreement dated as of the
date hereof between the Company, on the one hand, and Taconic Opportunity Fund
LP, Taconic Opportunity Master Fund LP, Taconic Master Fund 1.5 LP, Taconic
Capital Partners LP, Taconic Capital Partners 1.5 LP and Taconic Master Fund
LP, on the other hand, the Company shall deposit cash into the Escrow Account
in an amount equal to the anticipated tax gross-up payments payable in
accordance with such letter agreements with respect to two full-period interest
payments in respect of the Securities (such amount is referred to as the “Tax
Gross-Up Amount”).  Together with the
initial deposit of the Tax Gross-Up Amount or any subsequent deposit following
a determination by the Company of a change in the Tax Gross-Up Amount, the
Company shall deliver to the Trustee a schedule, certified by an officer of the
Company, showing the determination of the then applicable Tax Gross-Up Amount
and specifying the amount of the tax gross-up payments payable to any holder of
Securities per Interest Payment Date (as defined in the Securities) reflected
in such Tax Gross-Up Amount.  In giving
any direction to the Escrow Agent pursuant to Section 11(a) of
this Agreement, the Trustee shall be entitled to rely on the schedule most
recently received from the Company pursuant to the preceding sentence as to the
amount of tax gross-up payments payable to any Holder of Securities on any
Interest Payment Date.

 

(c)                                  Investment of Funds in Escrow Account. 
Funds deposited in the Escrow Account shall be invested and reinvested
only upon the following terms and conditions:

 

(i)                                    Acceptable Investments. 
All funds deposited or held in the Escrow Account at any time shall be
invested by the Escrow Agent in Cash 

 

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Equivalents or Government Securities in accordance
with the Company’s written instructions from time to time to the Escrow Agent; provided,
however, that the Company shall only designate investment of funds in Cash
Equivalents or Government Securities maturing in an amount sufficient to and/or
generating interest income sufficient to, when added to the balance of funds
held in the Escrow Account, provide for the payment of interest on the
outstanding Securities for two full interest periods; provided, further,
however, that any such written instruction shall specify the particular
investment to be made, shall state that such investment is authorized to be
made hereby and in particular satisfies the requirements of the preceding
proviso, shall contain the certification referred to in Section 1(c)(ii),
and shall be executed by any officer of the Company.  All amounts in the Escrow Account shall be
invested, as directed by the Company, in (a) a segregated money market
account maintained at Goldman Sachs or any of its related mutual funds in the
name of the Escrow Agent, for the benefit of the Trustee and the Secured
Parties or (b) to the extent Escrow Agent can make such investments, Cash
Equivalents and Government Securities assigned to and held in the possession
of, or, in the case of Cash Equivalents and Government Securities maintained in
book-entry form with the Federal Reserve Bank, transferred to a book-entry
account in the name of the Escrow Agent, for the benefit of the Trustee and the
Secured Parties, except that Cash Equivalents and Government Securities
maintained in book-entry form with the Federal Reserve Bank shall be
transferred to a book-entry account in the name of the Escrow Agent at the
Federal Reserve Bank, that includes only Cash Equivalents and Government
Securities held by the Escrow Agent for its customers and segregated by
separate recordation in the books and records of the Escrow Agent.  As used herein, “Cash Equivalents”
shall mean (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case maturing
within one year from the date of acquisition thereof; (b) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time
of acquisition, having one of the two highest ratings obtainable from either
Standard & Poor’s Ratings Group (“S&P”) or Moody’s
Investors Service, Inc. (“Moody’s”); (c) commercial paper maturing
no more than one year from the date of creation thereof and, at the time of
acquisition, having a rating of at least A-1 from S&P or at least P-1 from
Moody’s; (d) certificates of deposit or bankers’ acceptances maturing
within one year from the date of acquisition thereof issued by any bank
organized under the laws of the United States of America or any state thereof
or the District of Columbia or any U.S. branch of a foreign bank having at the 

 

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date of acquisition thereof combined capital and
surplus of not less than $250,000,000; (e) repurchase obligations with a
term of not more than seven days for underlying securities of the types
described in clause (a) above entered into with any bank meeting the
qualifications specified in clause (d) above; and (f) investments in
money market funds which invest substantially all their assets in securities of
the types described in clauses (a) through (f) above.  As used herein, “Government Securities”
shall mean direct obligations of, or obligations guaranteed by, the United
States of America, and the timely payment for which the United States pledges
its full faith and credit.  The Escrow
Agent shall not have any responsibility or liability for any loss which may
result from any investment made pursuant to this Agreement, or for any loss
resulting from the sale of such investment. 
The Company acknowledges that the Escrow Agent is not providing
investment supervision, recommendations, or advice.  Investments will be made promptly following
the availability of such funds to the Escrow Agent taking into consideration
the regulations and requirements of any investment provider and the Escrow
Agent.

 

(ii)                                 Security Interest in Investments. No investment of funds in the Escrow
Account shall be made unless the Company has certified to the Escrow Agent and
the Trustee that, upon such investment, the Trustee will have a first priority
perfected security interest in the applicable investment for the ratable
benefit of the Secured Parties.

 

(iii)                              Monthly Interest Sweep. On or after the 5th Business Day of
each month, the Company shall determine (based on the most recent statement
relating the Escrow Account delivered to the Company by the Escrow Agent) the
amount of interest earned on funds invested in Cash Equivalents and Government
Securities in the Escrow Account for the immediately preceding month and
(provided no Notice of Exclusive Control (as defined below) has been delivered
by the Trustee to the Escrow Agent) automatically initiate a federal funds wire
transfer of all such earned interest to the such account as may be designated
in writing from time to time by the Company. 
Concurrent with the transfer of such interest amount, the security
interest in the amount so transferred shall be released and terminated without
further notice, agreement or other action by any party hereto.

 

(iv)                             Limitation on Escrow Agent’s
Responsibilities.  The Escrow Agent’s sole responsibilities
under this Section 1(c) shall be (A) to retain possession
of certificated Cash Equivalents and Government Securities and to be the
registered or designated owner of Cash Equivalents or Government Securities
which are not certificated, if any, (B) to follow the Company’s written
instructions given in accordance with Sections 1(c)(i) and 1(c)(iii) (provided
no Notice of Exclusive Control has been previously delivered to the Escrow
Agent), (C) to invest and reinvest 

 

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funds pursuant to this Section 1(c), (D) to
maintain possession of, and dominion and control over, the Escrow Account and
the funds, Cash Equivalents and 
Government Securities therein, unless and until such funds are permitted
to be released or disbursed in accordance with the terms of this Agreement and (E) to
use commercially reasonable efforts to reduce to cash such Cash Equivalents and
Government Securities as may be required to fund any disbursement or payment in
accordance with Section 11. 
In connection with clause (A) above, the Escrow Agent will maintain
continuous possession in the State of New York of certificated Cash Equivalents
and Government Securities and cash included in the Collateral and will cause
uncertificated Cash Equivalents and Government Securities, if any, to be registered
in the book-entry system of, and transferred to an account of the Escrow Agent
or a sub-agent of the Escrow Agent at, the Federal Reserve Bank of New
York.  Except as provided in Sections
6 and 7, the Escrow Agent shall have no other responsibilities with
respect to perfecting or maintaining the perfection of the Trustee’s security
interest in the Collateral and shall not be required to file any instrument,
document or notice in any public office at any time or times.  In connection with clause (E) above, and
subject to the following sentence and except as otherwise provided in Section 11,
the Escrow Agent shall not be required to reduce to cash any Cash Equivalents
or Government Securities to fund any disbursement or payment in accordance with
Section 11 in the absence of written instructions signed by an officer
of the Company specifying the particular investment to liquidate.  If no such written instructions are received,
the Escrow Agent shall liquidate those Cash Equivalents and/or Government Securities
having the lowest interest rate per annum or if none such exist, those having
the nearest maturity.

 

(v)                                Manner of Investment. 
Funds deposited in the Escrow Account shall be invested in a manner such
that there will be sufficient funds available without any further investment by
the Company to cover all interest and any related tax gross-up payments due on
the outstanding Securities, as such amounts become due, for two full interest
periods, provided that such investments shall have such maturities and/or
interest payment dates such that funds will be available with respect to each
Interest Payment Date no later than the thirty-first day after such Interest
Payment.  The Escrow Agent shall have no
responsibility for determining whether funds held in the Escrow Account shall
have been invested in such a manner so as to comply with the requirements of
this clause (v).

 

2.                                       Release of Amounts in Escrow Account. The Escrow Agent shall hold all amounts
in the Escrow Account in escrow pursuant to this Agreement until authorized
hereunder to deliver any or all of such amounts to the Company or the Trustee,
as applicable, in 

 

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accordance with the requirements of Section 1(c)(iii) or
Section 11 hereof or to the Trustee in accordance with Section 6
hereof.

 

3.                                       Certain Additional Agreements. The Company and the Trustee shall, upon
request by the Escrow Agent, execute and deliver to the Escrow Agent such
additional written instructions and certificates hereunder as may be reasonably
required by the Escrow Agent to give effect to the provisions of Sections 1
and 2 hereof.

 

4.                                       The Escrow Account.

 

(a)                                  The parties agree and represent that (i) the
Escrow Account has been established in the name of the Company as recited above,
(ii) the Escrow Account is an account as to which Financial Assets (as
defined in the Code) are or may be credited and the Escrow Account is a
Securities Account (as defined in the Code), and (iii) the Escrow Account
has no Financial Assets which are registered in the name of the Company,
payable to its order or specifically endorsed to it, which have not been
endorsed to the Escrow Agent or in blank.

 

(b)                                 The Escrow Agent agrees and represents
that (i) this Agreement is the valid and legally binding obligation of the
Escrow Agent, (ii) except for the claims and interests of the Trustee for
the ratable benefit of the Secured Parties and the claims and interests of the
Company in the Escrow Account, the Escrow Agent does not know of any claim to
or interest in the Escrow Account or in any Financial Asset contained therein, (iii) the
Escrow Agent shall, subject to the terms of this Agreement, treat the Company
as entitled to exercise the rights that comprise any Financial Asset credited
to the Escrow Account and (iv) all property delivered to the Escrow Agent
for deposit to the Escrow Account will promptly be credited to the Escrow
Account.  The Escrow Agent will treat all
property held by it in the Escrow Account as financial assets under Article 8
of the Uniform Commercial Code of the State of New York (the “Code”), provided,
however, in the event that, by reason of mandatory provisions of law, any or
all of  the perfection or priority of the
security interest in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, the term “Code”
shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such perfection or priority
and for purposes of definitions related to such provisions, and any reference
to any section of the Code herein shall be a reference to such section as it is
modified and amended from time to time and to any successor section.

 

5.                                       No Withdrawals. 
The Escrow Agent shall neither accept nor comply with any entitlement
order from the Company withdrawing any Financial Assets from the Escrow Account
nor deliver any such Financial Assets to the Company nor pay any free credit
balance or other amount owing from the Escrow Agent to the Company, except in
the circumstances described in Section 1(c)(iii) or 11
hereof, as applicable, and only if the requirements to such transfer set forth
in Section 1(c)(iii) or 11, as 

 

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applicable, have been satisfied.  Notwithstanding the foregoing sentence or
anything to the contrary herein, following delivery to the Escrow Agent of a
Notice of Exclusive Control (as defined below) from Trustee and, until such
Notice of Exclusive Control is withdrawn by the Trustee, the Escrow Agent shall
comply only with entitlement orders given by the Trustee.

 

6.                                       Grant of Security Interest; Priority of
Security Interest.

 

(a)                                  The Company hereby grants to the Trustee
for the ratable benefit of the Secured Parties, to secure all obligations and
indebtedness of the Company under the Securities, a first priority security
interest in the Escrow Account and all funds and securities contained therein
and any and all proceeds of the foregoing (the “Collateral”).  The Escrow Agent acknowledges such security
interest.  The Escrow Agent hereby waives
and releases all liens, encumbrances, claims and rights of setoff the Escrow
Agent may have against the Escrow Account or any and all funds and securities
contained in the Escrow Account under the Code and other applicable law, and
agrees that, except with respect to its unpaid fees, non-reimbursed expenses
and unsatisfied indemnification obligations, it will not assert any such lien,
encumbrance, claim or right or the priority thereof against the Escrow Account
or any funds or securities contained in the Escrow Account.  The Escrow Agent will not agree with any
third party that the Escrow Agent will comply with orders concerning the Escrow
Account originated by such third party without the prior written consent of the
Trustee and the Company.  The Company
represents and warrants that, except for the security interest granted to the
Trustee for the ratable benefit of the Secured Parties hereby, the Company owns
the Collateral free and clear of any and all liens, encumbrances and claims of
others.

 

(b)                                 The Company and the Trustee hereby
irrevocably instruct the Escrow Agent to, and the Escrow Agent shall, (i) (A) maintain
sole dominion and control over funds, Cash Equivalents and Government
Securities in the Escrow Account for the benefit of the Trustee for the ratable
benefit of the Secured Parties to the extent specifically required herein, (B) maintain,
or cause its agent within the State of New York to maintain, possession of all
certificated Cash Equivalents or Government Securities purchased hereunder that
are physically possessed by the Escrow Agent in order for the Trustee for the
ratable benefit of the Secured Parties to enjoy a continuous perfected first
priority security interest therein under the law of the State of New York (the
Company hereby agreeing that in the event any certificated Cash Equivalent or
Government Securities are in the possession of the Company or a third party,
the Company shall undertake to deliver all such certificates to the Escrow
Agent), (C) take all steps specified by the Company pursuant to paragraph (a) above
to cause the Trustee for the ratable benefit of the Secured Parties to enjoy a
continuous perfected first priority security interest under the Code and any
applicable law of the State of New York in all Collateral consisting of
securities entitlements including, as applicable, all Cash Equivalents and 

 

7

 

Government Securities purchased hereunder that are not
certificated, if any, and (D) maintain the Collateral free and clear of
all liens and encumbrances in favor of, and claims against, the Escrow Agent of
any nature now or hereafter existing in favor of anyone other than the Trustee
for the ratable benefit of the Secured Parties; and (ii) promptly notify
the Trustee if the Escrow Agent receives written notice that any person other
than the Trustee has a lien, encumbrance or claim upon any portion of the
Collateral.  The lien and security
interest provided for by this Section 6 shall automatically
terminate and cease to exist, and shall not extend or apply to, and the Trustee
shall have no security interest in, any funds disbursed by the Escrow Agent to
the Company pursuant to this Agreement to the extent not inconsistent with the
terms hereof.  Notwithstanding any other
provisions contained in this Agreement, the Escrow Agent shall act solely as
the Trustee’s agent in connection with its duties under this Section 6.  The Escrow Agent shall not have any right to
receive compensation from the Trustee and shall have no authority to obligate
the Trustee or to subordinate, compromise or pledge its security interest
hereunder.  Accordingly, the Escrow Agent
is hereby directed to cooperate with the Trustee in the exercise of its rights
in the Collateral provided for herein.

 

(c)                                  The Company hereby appoints the Trustee
as its attorney-in-fact with full power of substitution, upon an Event of
Default as defined in the Indenture, to do any act which the Company is
obligated hereto to do, and the Trustee may exercise such rights as the Company
might exercise with respect to the Collateral and take any action in the
Company’s name to protect the Trustee’s security interest hereunder.  In addition to the rights provided under Section 6(b) hereof,
upon an Event of Default and for so long as such Event of Default continues,
the Trustee may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party under the Code or other applicable law,
and the Trustee may also upon obtaining possession of the Collateral as set
forth herein, without notice to the Company except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private
sale, at any exchange, broker’s board or at any of the Trustee’s offices or
elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Trustee may deem commercially reasonable.  The Company acknowledges and agrees that any
such private sale may result in prices and other terms less favorable to the
seller than if such sale were a public sale. 
The Company agrees that, to the extent notice of sale shall be required
by law, at least ten (10) days’ prior written notice to the Company of the
time and place of any public sale or the time after which any private sale is
to be made shall constitute reasonable notification.  The Trustee shall not be obligated to make
any sale regardless of notice of sale having been given.  The Trustee may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned.

 

8

 

7.                                       Control. The Escrow Agent will comply with entitlement orders
originated by the Trustee concerning the Escrow Account without further consent
by the Company.  Except as otherwise
provided in Sections 5 and 6 above, the Escrow Agent shall make
trades of Financial Assets held in the Escrow Account at the instruction of the
Company, or its authorized representative, and comply with entitlement orders
concerning such trades from the Company, or its authorized representative in
any of the investments permitted under this Agreement, until such time as the
Trustee delivers a written notice to the Escrow Agent which states that an
Event of Default has occurred under the Indenture and that the Trustee is
exercising exclusive control over the Escrow Account, unless and until such
notice is withdrawn.  Such notice is
referred to herein as the “Notice of Exclusive Control”. After the
Escrow Agent receives a Notice of Exclusive Control, it will immediately cease
complying with all instructions or entitlement orders concerning the Escrow
Account originated by the Company or its representative.  The Trustee agrees with the Company that it
shall not deliver a Notice of Exclusive Control to the Escrow Agent unless and
until an Event of Default shall have occurred and be continuing.  Further, the Trustee agrees that it shall not
deliver entitlement orders except as provided in Section 11 hereof.

 

8.                                       Statements, Confirmations and Notices of
Adverse Claims.
The Escrow Agent will send copies of all statements, confirmations and other
correspondence concerning the Escrow Account simultaneously to the Company and
the Trustee at the addresses set forth in Section 12(f) of
this Agreement.  If any person asserts in
writing any lien, encumbrance or adverse claim against the Escrow Account or in
any Financial Asset carried therein, the Escrow Agent will promptly notify the
Company and Trustee thereof.

 

9.                                       Escrow Agent.

 

(a)                                  The Escrow Agent shall be obligated only
to perform the duties specifically set forth in this Agreement, which shall be
deemed purely ministerial in nature, and shall under no circumstances be deemed
to be a fiduciary to any party or any other person. The parties agree that the
Escrow Agent shall not assume any responsibility for the failure of the parties
(other than the Escrow Agent) to perform in accordance with this Agreement.
This Agreement sets forth all matters pertinent to the Escrow Account
contemplated hereunder, and no additional obligations of the Escrow Agent shall
be inferred from the terms of this Agreement or any other agreement.  In no event shall the Escrow Agent be liable,
directly or indirectly, for any (i) damages or expenses arising out of the
services provided hereunder, other than damages which result from the Escrow
Agent’s gross negligence or willful misconduct, or (ii) special or
consequential damages, even if the Escrow Agent has been advised of the
possibility of such damages.

 

(b)                                 The Escrow Agent shall have no
responsibility or liability to the Trustee for making trades of Financial
Assets held in the Escrow Account at the instruction and direction of the
Company, or its authorized representative, or complying with entitlement orders
in accordance with Section 5 above 

 

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concerning the Escrow
Account from the Company, or its authorized representative, which are received
by the Trustee before the Escrow Agent receives a Notice of Exclusive
Control.  The Escrow Agent shall have no
responsibility or liability to the Company for complying with a Notice of
Exclusive Control or complying with entitlement orders concerning the Escrow
Account originated by the Trustee.  The
Escrow Agent shall have no duty to investigate or make any determination as to
whether the conditions for the issuance of a Notice of Exclusive Control
contained in any agreement between the Company and the Trustee have
occurred.  Neither this Agreement nor the
Security Agreement imposes or creates any obligation or duty of the Escrow
Agent other than those expressly set forth herein.

 

(c)                                  The Escrow Agent, in its capacity as
such, shall have no duties or responsibilities, including, without limitation,
a duty to review or interpret the Indenture, except those expressly set forth
herein.  Except for this Agreement, the
Escrow Agent, in its capacity as such, is not a party to, or bound by, any
agreement that may be required under, evidenced by, or arise out of the
Indenture.

 

(d)                                 If the Escrow Agent shall be uncertain as
to its duties or rights hereunder or shall receive instructions from any of the
undersigned with respect to the Escrow Account, which, in its opinion, are in
conflict with any of the provisions of this Agreement, it shall be entitled to
refrain from taking any action until it shall be directed otherwise in writing
by a joint written instruction of the Company and the Trustee or by order of a
court of competent jurisdiction.  The
Escrow Agent shall be protected in acting upon any notice, request, waiver,
consent, receipt or other document reasonably believed by the Escrow Agent to
be signed by the proper party or parties and shall not be liable with respect
to any action taken or omitted to be taken by it in accordance with any
instruction received by it hereunder. 
Concurrent with the execution of this Agreement, the Company shall
deliver to the Escrow Agent an authorized signers form in the form of Exhibit A
to this Agreement.

 

(e)                                  The Escrow Agent shall not be liable for
any act or omission while acting in good faith. 
Any act or omission by the Escrow Agent pursuant to the advice of its
attorneys shall be conclusive evidence of such good faith.  The Escrow Agent shall not be liable for the
alteration, modification or elimination of any right permitted or given under
any instructions and/or in any document deposited under this Escrow Agreement
due to any delay, any statute of limitations or due to any other reason.  The Escrow Agent shall have no further
responsibility or liability whatsoever to the Company or the Trustee following
a partial or complete distribution of the funds and securities held in the
Escrow Account pursuant to this Agreement. 
The Escrow Agent shall not incur any liability with respect to any act
or omission in reliance upon any document, including any written notice or
instruction provided for in this Agreement. In performing its obligations
hereunder, the Escrow Agent shall be entitled to presume, without investigation
or inquiry, the due execution, validity, 

 

10

 

effectiveness and
enforceability of all documents it receives and shall be entitled to rely upon
the genuineness of the signatures of the signatories of such documents, and
also the truth and accuracy of any information contained therein.  The Escrow Agent assumes no responsibility
for the validity or sufficiency of any instrument held as in the Escrow
Account.

 

(f)                                    The Escrow Agent may consult legal
counsel or other professionals of choice in the event of any dispute or
question as to the construction of this Agreement, or the Escrow Agent’s duties
hereunder, and the Escrow Agent shall incur no liability and shall be fully
protected with respect to any action taken, suffered or omitted in good faith
in accordance with the opinion and instructions of counsel or such other
professionals.  The Escrow Agent may in
all cases pay reasonable compensation to such counsel and shall be entitled to
reimbursement as set forth in Section 9(h) for all such
compensation paid.  The Escrow Agent may
perform its duties through its agents, attorneys, custodians or nominees.

 

(g)                                 In the event of any disagreement between
the parties hereto or any of them, and/or any other person, resulting in
adverse claims and demands being made in connection with or for the Escrow
Account, the Escrow Agent shall be entitled at its option to refuse to comply
with any such claim or demand, so long as such disagreement shall continue, and
in so doing the Escrow Agent shall not be or become liable for damages or
interest to the undersigned or any of them or to any person named herein for
its failure or refusal to comply with such conflicting or adverse demands.  The Escrow Agent shall be entitled to
continue so to refrain and refuse so to act until all differences shall have
been resolved by agreement and the Escrow Agent shall have been notified
thereof in writing signed by the Company and the Trustee.  In the event of such disagreement which
continues for ninety (90) days or more, the Escrow Agent in its sole discretion
may, but shall be under no obligation to, file a suit in interpleader for the
purpose of having the respective rights of the claimants adjudicated and may
deposit with the court all documents and property held hereunder.  The Company agrees to pay all reasonable
out-of-pocket costs and expenses incurred by the Escrow Agent in such action,
including reasonable attorneys’ fees and disbursements.  In no event shall the institution of such
interpleader action impair the rights of the Escrow Agent described elsewhere
in this Agreement.  The parties other
than the Escrow Agent further agree to pursue any redress or recourse in
connection with such a dispute, without making the Escrow Agent a party to
same.

 

(h)                                 The Company agrees to indemnify and hold
harmless the Escrow Agent from and against, any and all loss, liability, cost,
damage and expense, including, without limitation, counsel fees, which the
Escrow Agent may suffer or incur by reason of any action, claim or proceeding
brought against the Escrow Agent arising out of or relating in any way to this
Agreement or any transaction to which this Agreement relates unless such
losses, liabilities, costs damages and expenses shall have been finally
adjudicated to have resulted from the willful 

 

11

 

misconduct or gross
negligence of the Escrow Agent. The Escrow Agent may consult counsel of its
choice with respect to any question arising under this Agreement, and the
Escrow Agent shall not be liable for any action taken, suffered or omitted in
good faith upon advice of such counsel. 
The provisions of this Section 9(h) shall survive the
resignation or removal of the Escrow Agent and the termination of this
Agreement.

 

(i)                                     The Escrow Agent, in its capacity as
such, does not have any interest in the Escrow Account or any funds or securities
deposited hereunder but is serving as escrow holder only and having only
possession thereof.  This paragraph shall
survive notwithstanding any termination of this Agreement or the resignation of
the Escrow Agent.

 

(j)                                     The Escrow Agent (and any successor
Escrow Agent) may at any time resign as such by giving written notice of its
resignation to the parties hereto at least thirty (30) days prior to the date
specified for such resignation to take effect. 
The Escrow Agent may be removed at any time by act of the Trustee along
with payment of all fees and expenses to which it is entitled through the date
of termination.  Upon the effective date
of such resignation or removal of the Escrow Agent, all funds and securities in
the Escrow Account shall be delivered by it to such successor Escrow Agent or
as otherwise shall be instructed in writing by the Company and the Trustee,
whereupon the predecessor Escrow Agent shall be discharged of and from any and
all further obligations arising in connection with this Agreement.  If at that time the Escrow Agent has not
received such instruction, the Escrow Agent’s sole responsibility after that
time shall be to safekeep the Escrow Account and all funds and securities
contained therein until receipt of a designation of successor Escrow Agent, or
a joint written instruction as to disposition of the Escrow Account and all
funds and securities contained therein by the Company and the Trustee or a
final order of a court of competent jurisdiction mandating disposition of the Escrow
Account and all funds and securities contained therein.  If the Escrow Agent is removed or resigns,
the Company shall promptly appoint a successor Escrow Agent.  If the Company has failed to appoint a
successor prior to the expiration of thirty (30) days following receipt of the
notice of resignation or removal, the Escrow Agent may petition any court of
competent jurisdiction for the appointment of a successor escrow agent or for
other appropriate relief, and any such resulting appointment shall be binding
upon all of the parties.

 

(k)                                  The Escrow Agent hereby accepts its
appointment and agrees to act as Escrow Agent under the terms and conditions of
this Agreement and acknowledges receipt of the Escrow Amount.  The Company agrees (i) to pay to the
Escrow Agent upon the execution of this Agreement and from time to time its
fees as set forth in Exhibit B hereto as payment for its services
hereunder the Escrow Agents and (ii) to reimburse the Escrow Agent for all
reasonable out-of-pocket expenses, disbursements and advances incurred or made
by the Escrow Agent in the performance of its duties hereunder (including
reasonable fees, and 

 

12

 

out-of-pocket expenses
and disbursements, of its counsel).  The
Company and the Trustee hereby grant to Escrow Agent a security interest in and
lien upon the Escrow Account to secure all obligations with respect to the
right to offset the amount of any compensation or reimbursement due to Escrow
Agent hereunder (including any claim for indemnification hereunder) against the
Escrow Account.  The obligations of the
Company (i) and (ii) above shall survive the resignation or removal
of the Escrow Agent and the termination of this Agreement until extinguished by
any applicable statute of limitations.

 

(l)                                     The permissive right of the Escrow Agent
to do things enumerated in this Agreement shall not be construed as
duties.  Notwithstanding the foregoing,
the Escrow Agent will not take any action hereunder unless it requested or
directed to do so in writing.

 

(m)                               No provision of this Agreement shall
require the Escrow Agent to risk or advance its own funds or otherwise incur
any financial liability in the performance of its duties or the exercise of its
rights under this Agreement.

 

(n)                                 Any corporation or association into which
the Escrow Agent may be converted or merged, or with which it may be
consolidated, or to which it may sell or transfer all or substantially all of
its corporate trust business and assets as a whole or substantially as a whole,
or any corporation or association resulting from any such conversion, sale,
merger, consolidation or transfer to which the Escrow Agent is a party, shall
be and become the successor Escrow Agent under this Agreement and shall have
and succeed to the rights, powers, duties, immunities and privileges as its
predecessor, without the execution or filing of any instrument or paper or the
performance any further act.

 

(o)                                 In the event that any funds or securities
held in the Escrow Account shall be attached, garnished or levied upon by any
court order, or the delivery thereof shall be stayed or enjoined by an order of
a court, or any order, judgment or decree shall be made or entered by any court
order affecting the property deposited under this Agreement, the Escrow Agent
is hereby expressly authorized, in its sole discretion, to obey and comply with
all writs, orders or decrees so entered or issued, which it is advised by legal
counsel of its own choosing is binding upon it, whether with or without jurisdiction,
and in the event that the Escrow Agent obeys or complies with any such writ,
order or decree it shall not be liable to any of the parties or to any other
person, firm or corporation, by reason of such compliance notwithstanding such
writ, order or decree be subsequently reversed, modified, annulled, set aside
or vacated.

 

10.                                 Tax Reporting.

 

(a)                                  The Company shall be responsible for
reporting all items of income, gain, expense and loss recognized in the Escrow
Account.

 

13

 

(b)                                 The Company agrees to indemnify, defend
and hold the Escrow Agent harmless from and against any tax, late payment,
interest, penalty or other cost or expense that may be assessed against the
Escrow Agent on or with respect to the funds and securities held in the Escrow
Account and the investment thereof unless any such tax, late payment, interest,
penalty or other expense was caused by the gross negligence or willful
misconduct of the Escrow Agent.  The
indemnification provided by this Section 10(b) is in addition
to the indemnification provided in Section 9(h) and shall
survive the resignation or removal of the Escrow Agent and the termination of
this Agreement.

 

11.                                 Interest Payments; Partial Release; Other
Payments, Termination; Remedies:

 

(a)                                  Immediately prior to or on each Interest
Payment Date, the Company shall deposit with the Trustee cash from funds other
than those contained in the Escrow Account in an amount that is sufficient to
pay the interest due on such Interest Payment Date and, if applicable, any
related tax gross-up payments; provided, however, that if the Company
fails to make such payment within thirty (30) days after an Interest Payment
Date, the Trustee shall direct the Escrow Agent to liquidate investments (to
the extent required), and disburse to the Trustee the amounts required to be
paid on the Securities as interest with respect to such Interest Payment Date
and, if applicable, any tax gross-up payments payable with respect to such
interest; provided, however, that no tax gross-up payment shall be made
from the Escrow Account to the extent (x) the sum of (i) the balance
remaining in the Escrow Account after giving effect to such payment plus (ii) the
funds previously applied from the Escrow Account to the payment of interest and
not replenished pursuant to Section 11(b) hereof, would be
less than (y) the then required Escrow Amount less the then applicable Tax
Gross-Up Amount.  The Trustee shall incur
no liability arising out of its choice of investments to be liquidated pursuant
to this Section 11(a).

 

(b)                                 If the Trustee withdraws funds from the
Escrow Account pursuant to Section 11(a) hereof, then within
two (2) Business Days after such withdrawal the Company shall deposit cash in
the Escrow Account in an amount sufficient to replenish to the then required
Escrow Amount.

 

(c)                                  If at any time the principal amount of
the Securities is reduced, the Trustee promptly shall direct the Escrow Agent
to transfer, and the Escrow Agent promptly shall transfer, an amount equal to
the difference between the Escrow Amount prior to such reduction less the
amount of interest payable on the principal amount of Securities outstanding
immediately after such reduction for two full-period interest payments plus the
Tax Gross-Up Amount owed with respect to such reduced principal balance of
Securities to the account specified in Section 1(c)(iii) hereof,
or such other account as may be designated in writing by the Company.  Concurrent with such transfer of such
amounts, the security interest in the amounts so transferred shall be released
and terminated without further notice, agreement or other action by any party
hereto.

 

14

 

(d)                                 THE RIGHTS AND POWERS GRANTED HEREIN TO
THE TRUSTEE HAVE BEEN GRANTED IN ORDER TO PERFECT ITS SECURITY INTEREST IN THE
ESCROW ACCOUNT, ARE POWERS COUPLED WITH AN INTEREST AND WILL NEITHER BE
AFFECTED BY THE BANKRUPTCY OR INSOLVENCY OF THE COMPANY NOR BY THE LAPSE OF
TIME. THE OBLIGATIONS OF THE ESCROW AGENT UNDER SECTIONS 4, 5, 6, 7  AND 8 AND ITS RIGHTS UNDER SECTION 9
ABOVE SHALL CONTINUE IN EFFECT UNTIL THE SECURITY INTEREST OF THE TRUSTEE IN
THE ESCROW ACCOUNT HAS BEEN TERMINATED PURSUANT TO THE TERMS OF THIS AGREEMENT
AND THE TRUSTEE HAS NOTIFIED THE ESCROW AGENT OF SUCH TERMINATION IN
WRITING.  UPON RECEIPT OF SUCH NOTICE, (I) THE
OBLIGATIONS OF THE ESCROW AGENT UNDER SECTIONS 4, 5, 6, 7 AND 8
AND ITS RIGHTS UNDER SECTION 9 ABOVE WITH RESPECT TO THE OPERATION
AND MAINTENANCE OF THE ESCROW ACCOUNT AFTER THE RECEIPT OF SUCH NOTICE SHALL
TERMINATE, (II) THE TRUSTEE SHALL HAVE NO FURTHER RIGHT TO ORIGINATE
ORDERS CONCERNING THE ESCROW ACCOUNT AND (III) THE ESCROW AGENT SHALL
PROMPTLY TAKE SUCH STEPS AS THE COMPANY MAY REQUEST TO VEST FULL OWNERSHIP
AND CONTROL OF THE ESCROW ACCOUNT IN THE COMPANY, INCLUDING, BUT NOT LIMITED
TO, TRANSFERRING ALL OF THE FUNDS AND SECURITIES AND ALL PROCEEDS THEREOF TO
ANOTHER ACCOUNT IN THE NAME OF THE COMPANY OR ITS DESIGNEE AS DESIGNATED BY THE
COMPANY OR ITS AUTHORIZED REPRESENTATIVE.

 

12.                                 Miscellaneous.

 

(a)                                  Entirety. This Agreement, together with the Indenture and the
Intercreditor Agreement, represents the entire agreement of the parties hereto
(other than with respect to the Escrow Agent, only this Agreement) with respect
to the subject matter herein, and supersedes all prior agreements and
understandings, oral or written, if any, including any correspondence relating
thereto or the transactions contemplated herein.

 

(b)                                 Waivers, Amendments, Etc. Except as expressly, provided hereby,
the terms of this Agreement may be waived, altered, amended, modified, changed,
discharged or terminated only by an instrument in writing duly executed by each
of the parties hereto, subject to compliance with the provisions of the
Indenture.

 

(c)                                  Severability. If any provision hereof is illegal,
invalid or unenforceable in any jurisdiction, then, to the fullest extent
permitted by law, (i) the other provisions hereof shall remain in full
force and effect in such jurisdiction and shall be liberally construed in order
to carry out the intentions of the parties hereto as nearly as may be possible
and (ii) the illegality, invalidity or unenforceability 

 

15

 

of any provision in any
jurisdiction shall not affect the illegality, validity or enforceability of
such provision in any other jurisdiction.

 

(d)                                 Successors. This Agreement shall be binding upon the Company,
its successors and assigns and shall inure, together with the rights and
remedies hereunder, to the benefit of the Escrow Agent and its successors and
assigns and to the Trustee and its successors and assigns for the ratable
benefit of the Secured Parties; provided, however, that the Company may not
assign its rights or delegate its duties hereunder without first filing with
the Escrow Agent a certificate of the Company that such assignment or transfer
is permitted by the Indenture.

 

(e)                                  Rules of Construction. In this Agreement, words in the
singular number include the plural, and in the plural include the singular;
words of the masculine gender include the feminine and the neuter, and when the
sense so indicates words of the neuter gender may refer to any gender and the
word “or” is disjunctive but not exclusive. 
The captions and section numbers appearing in this Agreement are
inserted only as a matter of convenience. 
They do not define, limit or describe the scope or intent of the
provisions of this Agreement.  Except as
otherwise defined or capitalized herein, all terms herein shall have the meanings
ascribed thereto in Article 8 of the Code.

 

(f)                                    Notices. All notices, requests, consents and other
communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given or
made in writing (including, without limitation, by facsimile) delivered to the
intended recipient at the address below or, as to any party, at such other
address as shall be designated by such party in a notice to the other party.  Except as otherwise provided in this
Agreement, all such communications shall be deemed to have been duly given when
transmitted by facsimile or personally delivered or, in the case of a mailed
notice, upon receipt, in each case given or addressed as aforesaid.

 

If to the Company:

 

	
   

  	
  MXenergy
  Holdings Inc.

  
	
   

  	
  595
  Summer Street, Suite 300

  
	
   

  	
  Stamford,
  CT 06901

  
	
   

  	
  Attn:

  	
  Chief
  Financial Officer

  
	
   

  	
  Tel:

  	
  (203)
  356-1318

  
	
   

  	
  Fax:

  	
  (203)
  975-9659

  

 

with a copy to:

 

	
   

  	
  Paul,
  Hastings, Janofsky & Walker LLP

  
	
   

  	
  75 East 55th Street

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attn:

  	
  Michael
  K. Chernick, Esq.

  

 

16

 

	
   

  	
  Tel:

  	
  (212)
  318-6000

  
	
   

  	
  Fax:

  	
  (212)
  230-7639

  

 

If to the Trustee:

 

	
   

  	
  Law Debenture Trust Company of New York

  
	
   

  	
  400 Madison Avenue - 4th floor

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Attn:

  	
  Corporate Trust Department

  
	
   

  	
  Tel:

  	
  (212) 750-6474

  
	
   

  	
  Fax:

  	
  (212) 750-1361

  

 

If to the Escrow Agent:

 

	
   

  	
  Law Debenture Trust Company of New York

  
	
   

  	
  400 Madison Avenue - 4th floor

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Attn:

  	
  Corporate Trust Department

  
	
   

  	
  Tel:

  	
  (212) 750-6474

  
	
   

  	
  Fax:

  	
  (212) 750-1361

  

 

The Company, the Trustee or the Escrow Agent
by notice to the others may designate additional or different addresses for
subsequent notices or communications.

 

All notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery, provided, however, that notices to the
Escrow Agent shall be effective only upon receipt.

 

If a notice or communication is mailed in the
manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it (except in the case of the Escrow Agent).

 

(g)                                 Further Assurances. At any time and from time to time, upon
the request of the Trustee or the Escrow Agent and at the sole expense of the
Company, the Company will promptly and duly execute and deliver such further
instruments and documents and take such further actions as the Trustee or the
Escrow Agent may reasonably request for the purpose of obtaining or preserving
the full benefits of this Agreement and of the rights and powers herein
granted, including without limitation, the filing of any financing statements
under the Code (or similar laws) in effect with respect to the security
interests granted hereby.

 

17

 

(h)                                 Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart.  It shall
not be necessary in making proof of this Agreement to produce or account for
more than one such counterpart.

 

(i)                                     Governing Law; Submission to
Jurisdiction; Venue.  (a) THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW, EXCEPT AS OTHERWISE REQUIRED BY
MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED BY
THE LAWS OF ANY JURISDICTION OTHER THAN NEW YORK ARE GOVERNED BY THE LAWS OF
SUCH JURISDICTION.  Any legal action or
proceeding with respect to this Agreement or transactions contemplated hereby
may be brought in the courts of the State of New York located in the Borough of
Manhattan, or of the United States for the Southern District of New York, and,
by execution and delivery of this Agreement, the Company hereby irrevocably
submits, for itself and in respect of its property, generally and unconditionally,
to the non-exclusive jurisdiction of such courts.  The Company further irrevocably consents to
the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to it at the address above pursuant to Section 12(f) hereof,
such service to become effective thirty (30) days after such mailing.  Nothing herein shall affect the right of the
Escrow Agent to serve process in any other manner permitted by law or to
commence legal proceedings or to otherwise proceed against the Company in any
other jurisdiction.

 

(j)                                     Headings.  The headings
of sections and subsections hereof are provided for convenience only and shall
not in any way affect the meaning or construction of any provision of this
Agreement.

 

[Signature Pages Follow]

 

18

 

IN WITNESS WHEREOF, the parties hereto have caused
this Escrow and Security Agreement to be duly executed as of the day and year
first above written.

 

 

	
   

  	
  MXENERGY
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
  Name:

  	
  Jeffrey
  A. Mayer

  
	
   

  	
  Title:

  	
  President

  

 

[Signature
Page to Escrow and Security Agreement]

 

 

	
   

  	
  LAW
  DEBENTURE TRUST COMPANY OF NEW YORK, as Escrow Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anthony A. Bocchino

  
	
   

  	
  Name:

  	
  Anthony
  A. Bocchino

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature
Page to Escrow and Security Agreement]

 

 

	
   

  	
  LAW
  DEBENTURE TRUST COMPANY OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anthony A. Bocchino

  
	
   

  	
  Name:

  	
  Anthony
  A. Bocchino

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature
Page to Escrow and Security Agreement]

 

 

EXHIBIT A

 

CERTIFICATE AS TO
AUTHORIZED SIGNATURES

 

Account Name:                                                     [                    ]

 

Account Number:                                        [                    ]

 

The specimen
signatures shown below are the specimen signatures of the individuals who have
been designated as Authorized Representatives of MXenergy
Holdings Inc. and are authorized to initiate and approve
transactions of all types for the above-mentioned account on behalf of MXenergy Holdings Inc.:

 

	
  Name / Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  

 

 

EXHIBIT B

 

ESCROW AGENT’S FEE
SCHEDULE

 

	
  Acceptance
  Fee:

  	
  $2,500

  
	
   

  	
   

  
	
  Administration
  Fee:

  	
  $5,000

  
	
   

  	
   

  
	
  Transaction
  Fee:

  	
  Not
  Applicable

  
	
   

  	
   

  
	
  Legal
  Fees:

  	
  Billed
  at cost, if applicable.

  

 

The
Acceptance and Administration Fees are due and payable upon the execution of
the Escrow Agreement.  The Administration
Fee is due and payable upon each anniversary of the date of execution of the
Escrow Agreement thereafter until termination of the Escrow Agreement.  This fee will be billed on a per annum or
part thereof basis.

 

Any
Legal Fees stemming from the preparation, execution, delivery, performance,
modification and/or termination of this Escrow Agreement are due upon receipt
of our counsel’s invoice.Exhibit 4.6

 

 

 

INTERCREDITOR AND SUBORDINATION
AGREEMENT

 

among

 

MXENERGY HOLDINGS INC.,

a Delaware corporation

 

and

 

THE OTHER PLEDGORS FROM TIME TO TIME
PARTY HERETO,

 

and

 

SEMPRA ENERGY TRADING LLC,

as Facility Agent,

 

 

and

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK,

as Junior
Notes Trustee.

 

dated as of September 22, 2009

 

 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  DEFINITIONS; PRINCIPLES OF CONSTRUCTION

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
  Defined Terms

  	
  2

  
	
  SECTION 1.2

  	
  Rules of Interpretation

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  SUBORDINATION

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
  Priority of Payments

  	
  11

  
	
  SECTION 3.2

  	
  Priority of Liens

  	
  12

  
	
  SECTION 3.3

  	
  Standstill Provisions

  	
  13

  
	
  SECTION 3.4

  	
  Restrictions on Enforcement of Liens

  	
  15

  
	
  SECTION 3.5

  	
  Waiver of Right of Marshalling

  	
  16

  
	
  SECTION 3.6

  	
  Discretion in Enforcement of ISDA Liens

  	
  16

  
	
  SECTION 3.7

  	
  Discretion in Enforcement of ISDA Obligations

  	
  17

  
	
  SECTION 3.8

  	
  Insolvency or Liquidation Proceedings

  	
  17

  
	
  SECTION 3.9

  	
  Certain Notices in Junior Notes Documents

  	
  18

  
	
  SECTION 3.10

  	
  Prepayment of Junior Notes from Replacement Debt

  	
  19

  
	
  SECTION 3.11

  	
  Prepayment of Notes from a Private Equity Offering

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
  INTERCREDITOR RELATIONS

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
  Application of Proceeds in Distributions by the
  Facility Agent

  	
  20

  
	
  SECTION 4.2

  	
  The Escrow Account

  	
  21

  
	
  SECTION 4.3

  	
  Amendments to Junior Notes and Junior Notes
  Indenture

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5.

  	
  OBLIGATIONS ENFORCEABLE BY HOLDINGS AND THE OTHER
  PLEDGORS

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
  Release of Liens on Shared Collateral

  	
  22

  
	
  SECTION 5.2

  	
  Delivery of Copies to Each Secured Debt
  Representative

  	
  23

  
	
  SECTION 5.3

  	
  Secured Debt Representatives not Required to Serve,
  File or Record

  	
  23

  
	
  SECTION 5.4

  	
  Release of Liens in Respect of Junior Notes

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
  MISCELLANEOUS PROVISIONS

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
  Amendment of this Agreement

  	
  24

  
	
  SECTION 6.2

  	
  Voting

  	
  24

  
	
  SECTION 6.3

  	
  Further Assurances

  	
  24

  
	
  SECTION 6.4

  	
  Bailee for Perfection

  	
  24

  
	
  SECTION 6.5

  	
  Delivery of Shared Collateral and Proceeds of Shared
  Collateral

  	
  25

  

 

i

 

	
  SECTION 6.6

  	
  Successors and Assigns

  	
  25

  
	
  SECTION 6.7

  	
  Delay and Waiver

  	
  25

  
	
  SECTION 6.8

  	
  Notices

  	
  25

  
	
  SECTION 6.9

  	
  Notice Following Discharge of ISDA Obligations

  	
  27

  
	
  SECTION 6.10

  	
  Entire Agreement

  	
  27

  
	
  SECTION 6.11

  	
  Severability

  	
  27

  
	
  SECTION 6.12

  	
  Headings

  	
  27

  
	
  SECTION 6.13

  	
  Obligations Secured

  	
  27

  
	
  SECTION 6.14

  	
  Governing Law

  	
  27

  
	
  SECTION 6.15

  	
  Consent to Arbitration

  	
  27

  
	
  SECTION 6.16

  	
  Waiver of Certain Damages

  	
  28

  
	
  SECTION 6.17

  	
  Certain Understandings

  	
  28

  
	
  SECTION 6.18

  	
  Counterparts

  	
  29

  
	
  SECTION 6.19

  	
  Effectiveness

  	
  29

  
	
  SECTION 6.20

  	
  Additional Pledgors

  	
  29

  
	
  SECTION 6.21

  	
  Termination; Reinstatement

  	
  29

  
	
  SECTION 6.22

  	
  Insolvency

  	
  29

  
	
  SECTION 6.23

  	
  Rights and Immunities of Secured Debt
  Representatives

  	
  30

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  –

  	
     Form of Intercreditor
  Agreement Joinder

  	
   

  
				

 

ii

 

INTERCREDITOR
AND SUBORDINATION AGREEMENT (this “Agreement”)
dated as of September 22, 2009 by and among MxEnergy Holdings Inc., a Delaware corporation (“Holdings”),
the Pledgors from time to time party hereto, Sempra
Energy Trading LLC, a Delaware limited liability company (“Sempra”), together
with its successors and assigns, in its capacity as Facility Agent, and Law Debenture Trust Company of New York,
not individually, but solely in its capacity as trustee under the Junior Indenture
described below for the benefit of the Holders of the Junior Notes (in such
capacity, together with its successors and assigns, the “Junior
Notes Trustee”).

 

RECITALS

 

A.            Concurrently
herewith, the Facility Agent (defined below) is entering into a Master ISDA
Agreement with MxEnergy Inc., a Delaware corporation (“MX Energy”), and the
Guarantors named therein (the “Master MX Energy ISDA”, which term shall encompass the
related ISDA Documents), and a Master ISDA Agreement with MxEnergy Electric
Inc., a Delaware corporation (“MX Electric”), and the Guarantors named therein (the “Master MX Electric ISDA”,
which term shall encompass the related ISDA Documents).  The Facility Agent may from time to time
enter into other Master ISDA Agreements with Affiliates of MX Energy or MX
Electric (each such Affiliate, an “Additional
MX Party” and, together with MX Energy and MX Electric, the “ISDA Parties”), and the Guarantors named
therein (each, an “Additional Master ISDA”,
which term shall encompass the related ISDA Documents).  As used herein, the term “Master ISDAs” shall mean the Master MX
Energy ISDA, the Master MX Electric ISDA and any Additional Master ISDA.  As used herein, the term Master MX Energy
ISDA, the term Master MX Electric ISDA and the term Additional Master ISDA, as
the case may be, means the Master MX Energy ISDA, the Master MX Electric ISDA
and any Additional Master ISDA described in this paragraph, as the same may be
amended, amended and restated, supplemented, modified, renewed, restated, replaced,
refinanced or extended, restructured or otherwise modified, in whole or in
part, from time to time, and including any agreement extending the maturity of,
or refinancing or restructuring in full (including, but not limited to, the
inclusion of additional guarantors or parties thereunder or any increase in the
amount borrowed or covered thereby) of all of, the indebtedness or other
obligations under such agreement or any successor agreements, whether or not
with the same agent, trustee, representative, lenders, holders or parties, provided
that, with respect to any agreement providing for such refinancing or
replacement of a Master ISDA, such agreement shall only be treated as the
Master MX Energy ISDA, the Master MX Electric ISDA or an Additional Master
ISDA, as the case may be, hereunder if (A) (i) it refinances and
replaces in full all of the obligations thereunder or (ii) it, together
with other facilities or other sources of funds, refinances, replaces and/or
repays in full all of the obligations thereunder and (B) a representative
for the agent or credit provider under any refinancing or replacement facility
(that either replaces or refinances in full a Master ISDA) executes an
Intercreditor Agreement Joinder in the form attached as Exhibit A hereto).

 

B.            Holdings has issued
$67,751,000 aggregate principal amount of its
131⁄4% Senior
Subordinated Secured Notes due 2014 (together with all other notes issued under
the Junior Indenture (defined below), including all notes issued in exchange or
replacement thereof, the “Junior Notes”) pursuant to that certain
Indenture, dated as of the date hereof (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Junior 

 

 

Indenture”), among
Holdings, the subsidiary guarantors named therein and the Junior Notes Trustee.

 

C.            In connection with
the Master ISDAs, the ISDA Parties and the other Pledgors also intend to enter
into the ISDA Security Documents, pursuant to which the Facility Agent will be
granted a first priority security interest in the collateral described therein
(the “First Lien Collateral”).

 

D.            In connection with
the issuance of the Junior Notes, Holdings and the other Pledgors also intend
to enter into the Junior Notes Documents, pursuant to which the Junior Notes Trustee
will be granted a first priority security interest in the Escrow Account and a
second priority security interest in the First Lien Collateral.

 

E.             The ISDA Documents
and the Junior Notes Documents provide, among other things, that the parties
thereto shall set forth in this Agreement their relative rights and priorities
with respect to payments under the ISDA Documents and the Junior Notes
Documents and the Shared Collateral.

 

F.             Capitalized terms
used in this Agreement have the meanings assigned to them above, in the Master
ISDAs or in Article 1 below.

 

AGREEMENT

 

In
consideration of the premises and the mutual agreements herein set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties to this
Agreement hereby agree as follows:

 

ARTICLE
1.  DEFINITIONS; PRINCIPLES OF
CONSTRUCTION

 

SECTION 1.1         Defined Terms.  The following terms will have the following
meanings:

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person.  For purposes of this definition,
“control,” as used with respect to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities,
by agreement or otherwise; provided, however, that beneficial
ownership of 10% or more of the Voting Stock of a Person shall be deemed to be
control.  For purposes of this definition,
the terms “controlling,” “controlled by” and “under common control with” have
correlative meanings.

 

“Additional Master ISDA” has the
meaning set forth in the recitals.

 

“Additional MX Party” has the
meaning set forth in the recitals.

 

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

 

“Bankruptcy Standstill” has the
meaning set forth in Section 3.3(c).

 

2

 

“Business Day” means any day
other than a Saturday, a Sunday or a day on which banking institutions in the
City of New York or at a place of payment are authorized by law, regulation or
executive order to remain closed.

 

“Capital Stock” means (a) in
the case of a corporation, corporate stock; (b) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock; (c) in
the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and (d) any other
interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing
Person; but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

 

“Change of Control Offer”
has the meaning given in the Junior Indenture on the date hereof.

 

“Class B Common Stock” means the Class B
Common Stock, par value $0.01 per share, of Holdings issued on the Closing Date
to the Facility Agent.

 

“Closing Date” means the date
on which the Master MX Energy ISDA and the Master MX Electric ISDA are executed
and delivered by all parties thereto and all conditions precedent to the
execution and delivery of the Master MX Energy ISDA and the Master MX Electric
ISDA have been satisfied or waived.

 

“Collateral” means all
properties and assets of Holdings and any other Pledgor that constitutes “Collateral”
under and as defined in any one or more of the Master ISDAs, the Junior
Indenture or any other Secured Debt Document.

 

“Discharge of ISDA
Obligations” means the occurrence of all of the following:

 

(1)           indefeasible payment in full in cash
of settlement amounts, termination payments, the principal of and interest
(including interest accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not such interest would be allowed in such
Insolvency or Liquidation Proceeding) and premium (if any) on all amounts
outstanding under or that would be due upon the termination of the Master ISDAs
and constituting ISDA Obligations, including reimbursement obligations;

 

(2)           indefeasible payment in full in cash
of all other ISDA Obligations that are outstanding and unpaid at the time such
settlement amounts, termination payments, principal, interest and premium (if
any) on all amounts outstanding under the Master ISDAs are paid in full in cash
(other than any obligations for taxes, indemnifications, damages and other
contingent liabilities in respect of which no claim or demand for payment has
been made at such time);

 

(3)           irrevocable termination or expiration
of all commitments, if any, of the Facility Agent to extend credit or undertake
transactions that would constitute, or give rise to, ISDA Obligations; and

 

3

 

(4)           irrevocable termination or cash
collateralization (in an amount and manner reasonably satisfactory to the
Facility Agent, but in no event greater than 105% of the aggregate undrawn face
amount) of all letters of credit and guarantees issued under or pursuant to the
terms of the Master ISDAs and constituting ISDA Obligations.

 

“Enforcement Action” means, any action to enforce the rights or remedies of the Junior Notes,
the Junior Notes Trustee or any other person acting on behalf of one or more
holders of Junior Notes, including, without limitation:

 

(i)                                   taking any
action to commence or petition for the commencement of an Insolvency or Liquidation
Proceeding with respect to Holdings or any Pledgor;

 

(ii)                                demanding,
suing or taking any action for enforcement of the payment of any amounts owed
with respect to the Junior Notes or any guarantee of such Junior Notes;

 

(iii)                             initiating or
participating in any suit or proceeding to enforce any rights or remedies under
the Junior Notes, any guarantee of the Junior Notes or any other agreements
executed in connection therewith;

 

(iv)                            contesting any
action taken, or forbearance, by the Facility Agent with respect to Holdings or
any Pledgor or the Collateral (except in violation of this Agreement);

 

(v)                               accelerating
the Junior Notes;

 

(vi)                            making a demand
on any guarantee issued with respect to the Junior Notes; and

 

(vii)                         taking any
action to realize or foreclose on any collateral securing the Junior Notes or
any guarantee of the Junior Notes.

 

“Escrow Account” means the segregated escrow account established pursuant to the Escrow
Agreement.

 

“Escrow Agreement” means that
certain Escrow and Security Agreement
dated the date hereof among the Junior Notes Trustee, Holdings and Law
Debenture Trust Company of New York, as escrow agent.

 

“Escrow Amount” means the
amount of funds held in the Escrow Account from time to time not to exceed an
amount equal to the next two full-period interest payments (based on the
principal amount then outstanding at the stated rate of interest on the Issue
Date without giving effect to any increase in the stated rate of interest
following an event of default in respect of the Junior Notes or any amendment
to the stated rate of interest) and related Tax Gross-Up Amounts on the Junior
Notes.

 

“Facility Agent” means, at any
time, the Person serving at such time as Party A under the Master ISDAs or any
other representative then most recently designated in accordance with the
applicable provisions of the Master ISDAs or any successor or replacement
agreement or agreements entered into in connection with the replacement or
refinancing of the Master ISDAs 

 

4

 

together with its successors in such capacity; provided that any
such successor or replacement shall have executed this Agreement or an
Intercreditor Agreement Joinder.

 

“Guarantee and Collateral
Agreement” means the Guarantee and Collateral Agreement
dated the date hereof among Holdings, the other parties thereto and the
Facility Agent.

 

“Holder” means the
record holder of an ISDA Obligation or Junior Note.

 

“Holdings” has the
meaning set forth in the recitals.

 

“Insolvency or Liquidation
Proceeding” means:

 

(1)           any case commenced by or against
Holdings or any other Pledgor under Title 11, U.S. Code or any similar federal
or state law for the relief of debtors, any other proceeding for the
reorganization, recapitalization or adjustment or marshalling of the assets or
liabilities of Holdings or any other Pledgor, any receivership or assignment
for the benefit of creditors relating to Holdings or any other Pledgor or any
similar case or proceeding relative to Holdings or any other Pledgor or its
creditors, as such, in each case whether or not voluntary;

 

(2)           any liquidation, dissolution,
marshalling of assets or liabilities or other winding up of Holdings or any
other Pledgor, in each case whether or not voluntary and whether or not
involving bankruptcy or insolvency, other than a liquidation or dissolution of
Holdings or a Pledgor in connection with (a) a merger or consolidation of
such Person with or into a Pledgor or Holdings, as the case may be, or (b) a
transfer of substantially all assets of Holdings or a Pledgor to a Pledgor or
Holdings, as the case may be, in the case of each of the preceding clauses (a) and
(b), in a transaction that is permitted under the Master ISDAs; or

 

(3)           any other proceeding of any type or
nature in which substantially all claims of creditors of Holdings or any other
Pledgor are determined and any payment or distribution is or may be made on
account of such claims.

 

“Intercreditor Agreement
Joinder” means an agreement substantially in the form of Exhibit A.

 

“ISDA Default” means an Event
of Default or Termination Event under any of the Master ISDAs.

 

“ISDA  Documents” means the Master ISDAs,
trade confirmations under the Master ISDAs or otherwise, letters of credit and
guarantees issued in connection with Master ISDAs, the ISDA Security Documents
and each of the other agreements, schedules, annexes, confirmations, documents
and instruments providing for, relating to or evidencing any other ISDA
Obligations, and any other document or instrument executed or delivered at any
time in connection with, or giving rise to, any ISDA Obligations, to the extent
such are effective at the relevant time, as each may be amended, amended and
restated, supplemented, modified, renewed, replaced, refinanced or extended,
restructured or otherwise modified, in whole or in part, from time to time in
accordance with its terms and with the provisions of this Agreement.

 

5

 

“ISDA Lien” means a Lien
granted by any ISDA Security Document to the Facility Agent, at any time, upon
any property of Holdings or any other Pledgor to secure ISDA Obligations.

 

“ISDA  Obligations” means any
settlement amount, termination payment, principal (including reimbursement
obligations with respect to letters of credit and guarantees whether or not
drawn), interest (including, to the extent legally permitted, all interest
accrued thereon after the commencement of any Insolvency or Liquidation
Proceeding at the rate, including any applicable post-default rate, specified in
the ISDA Documents, even if such interest is not enforceable, allowable or
allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable under
the ISDA Documents.

 

“ISDA Parties” has the
meaning set forth in the recitals.

 

“ISDA Security Documents”
means, collectively, the Guarantee and Collateral Agreement and any and
all guarantees, security agreements, pledge agreements, collateral assignments,
mortgages, collateral agency agreements, control agreements, deeds of trust or
other grants or transfers for security executed and delivered by Holdings or
any other Pledgor creating (or purporting to create) a Lien securing ISDA
Obligations in favor of the Facility Agent, in each case, as amended, amended
and restated, supplemented, modified, renewed, restated, replaced, refinanced
or extended, restructured or otherwise modified, in whole or in part, from time
to time, in accordance with its terms and with the provisions of this Agreement.

 

“Issue Date” means the date
of original issuance of the Junior Notes.

 

“Junior Indenture” has the
meaning set forth in the recitals.

 

“Junior Lien” means the Lien
granted by any Junior Notes Document to the Junior Notes Trustee, at any time,
upon any property of Holdings or any other Pledgor, other than the Escrow
Account and Funds on deposit therein, to secure Junior Notes Obligations.

 

“Junior Notes” has the
meaning set forth in the recitals.

 

“Junior  Notes Documents” means,
collectively, the Junior Indenture, the Junior Notes and all security
agreements, pledge agreements, collateral assignments, mortgages, collateral
agency agreements, control agreements, deeds of trust or other grants or
transfers for security executed and delivered by Holdings or any other Pledgor
creating (or purporting to create) a Lien securing Junior Notes Obligations in
favor of a Junior Notes Trustee, and any other document or instrument executed
or delivered at any time in connection with any Junior Notes Obligations, in
each case, as amended, amended and restated, supplemented, modified, renewed,
restated, replaced, refinanced or extended, restructured or otherwise modified
in whole or in part, from time to time, in accordance with its terms and with
the provisions of this Agreement.

 

“Junior Notes Guarantee” means the
guarantee of the Junior Notes by each Subsidiary of Holdings pursuant to the
Junior Indenture.

 

6

 

“Junior Notes  Obligations” means any
principal, interest (including, to the extent legally permitted, all interest
accrued thereon after the commencement of any Insolvency or Liquidation
Proceeding at the rate, including any applicable post-default rate, specified
in the Junior Notes Documents, even if such interest is not enforceable,
allowable or allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable under
the Junior Notes Documents.

 

“Junior Notes Trustee” has the
meaning set forth in the preamble.

 

“Lien” means, with
respect to any asset, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind in respect of such asset, whether or not filed,
recorded or otherwise perfected under applicable law, including any conditional
sale or other title retention agreement, any lease in the nature thereof, any
option or other agreement to sell or give a security interest on and any filing
of or agreement to give any financing statement under the Uniform Commercial
Code (or equivalent statutes) of any jurisdiction.

 

“Master ISDAs” has the
meaning set forth in the recitals.

 

“Master MX Electric ISDA” has the
meaning set forth in the recitals.

 

“Master MX Energy ISDA” has the
meaning set forth in the recitals.

 

“MX Electric” has the meaning
set forth in the recitals.

 

“MX Energy” has the
meaning set forth in the recitals.

 

“Net Proceeds Offer”
has the meaning given in the Junior Indenture on the date hereof.

 

“Non-U.S. Holder” has the
meaning given in the Junior Indenture on the date hereof.

 

“Notes Default Notice” means a notice
from the Junior Notes Trustee to the Facility Agent that an Event of Default
has occurred and is continuing under the Junior Indenture or a notice from the
Facility Agent to the Junior Notes Trustee that an Event of Default has
occurred and is continuing under the Junior Indenture.

 

“Officers’ Certificate”
means a certificate with respect to compliance with a condition or
covenant provided for in this Agreement, signed on behalf of Holdings by a
responsible officer  of Holdings,
including:

 

(a)           a statement that the Person making
such certificate has read such covenant or condition;

 

(b)           a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate are based;

 

(c)           a statement that, in the opinion of
such Person, he or she has made such examination or investigation as is
necessary to enable him or her to express 

 

7

 

an informed opinion as to
whether or not such covenant or condition has been satisfied; and

 

(d)           a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been satisfied.

 

“Person” means any
individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, limited liability company or
government or other entity.

 

“Pledgors” means Holdings,
its Subsidiaries party hereto and, at any time, any other Person that at such
time provides collateral security for any Secured Obligations.

 

“Private Equity” means Capital
Stock of Holdings issued to a Person pursuant to a Private Equity Offering.

 

“Private Equity Offering” means an
issuance of Capital Stock that is not registered under the Securities Act of
1933, as amended, in accordance with such act.

 

“Qualified Initial Public
Offering” means an
initial public offering of the Capital Stock of Holdings pursuant to which the
application of the net proceeds thereof result in the Discharge of ISDA
Obligations.

 

“RBS” means The
Royal Bank of Scotland plc.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated as of the date hereof, among
Holdings and certain of the Stockholders party thereto, as the same may be
amended from time to time.

 

“Related Agreements”
means, collectively, the ISDA Documents, the Stockholders Agreement and the
Registration Rights Agreement.

 

“Replacement Debt” means
indebtedness for money borrowed incurred by Holdings that is consistent in all
respects with the provisions of Section 3.10, the proceeds of which are
used to prepay the Junior Notes.

 

“Secured Debt” means the ISDA
Obligations and the Junior Notes Obligations.

 

“Secured Debt Default” means any ISDA
Default and any other event or condition which, under the terms of any credit
agreement, indenture or other agreement governing any Secured Debt causes, or
permits holders of Secured Debt outstanding thereunder (with or without the
giving of notice or lapse of time, or both, and whether or not notice has been
given or time has lapsed) to cause, the Secured Debt outstanding thereunder to
become immediately due and payable.

 

“Secured Debt Documents”
means the ISDA Documents and the Junior Notes Documents.

 

8

 

“Secured Debt Representative” means the
Facility Agent and the Junior Notes Trustee.

 

“Secured Obligations” means the ISDA
Obligations, the Junior Notes Obligations and the obligations of Holdings and
other Pledgors under this Agreement.

 

“Secured Parties” means the
holders of Secured Obligations and the Secured Debt Representatives.

 

“Shared Collateral” means all
properties and assets of Holdings or any other Pledgor, whether real, personal
or mixed, with respect to which from time to time a Lien is granted as security
for the ISDA Obligations and the Junior Notes, other than the Escrow Account
and funds on deposit therein.

 

“Stated Maturity” means August 1,
2014.

 

“Stockholders” means the
holders of Capital Stock in Holdings.

 

“Stockholders Agreement” means the
Stockholders Agreement dated the date hereof among Holdings and the
Stockholders party thereto.

 

“Stockholders Agreement  Joinder” means an agreement
substantially in the form attached as Annex A to the Stockholders Agreement.

 

“Subsidiary” means, with
respect to any Person, (a) any corporation, association or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock entitled (without regard to the occurrence of any contingency and after
giving effect to any voting agreement or equityholders’ agreement that
effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination
thereof); and (b) any partnership (i) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person
or (ii) the only general partners of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof).

 

“Tax Gross-Up Amount” means amounts
which may be payable to Non-U.S. Holders of the Junior Notes pursuant to either
(i) the letter agreement dated as of September 22, 2009, between
Holdings, on the one hand, and Camulos Loan Vehicle Fund I LP and Camulos
Master Fund LP, on the other hand, or (ii) the letter agreement dated as
of September 22, 2009, between Holdings, on the one hand, and Taconic
Opportunity Fund LP, Taconic Opportunity Master Fund LP, Taconic Master Fund
1.5 LP, Taconic Capital Partners LP, Taconic Capital Partners 1.5 LP and
Taconic Master Fund LP, on the other hand; provided, however,
that, following an ISDA Default and for so long as such ISDA Default is
continuing, such payments may be made solely from the Escrow Amount in the
Escrow Account.

 

“UCC” means the Uniform
Commercial Code as the same may be in effect from time to time in the State of
New York; provided, however, in the event that, by reason of
mandatory provisions of law, any or all of the perfection or priority of the
security interest in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of 

 

9

 

New
York, the term “UCC” shall mean the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the provisions of this Agreement and
for purposes of definitions related to such provisions.

 

SECTION 1.2                                                  Rules of Interpretation.

 

(a)                                  All terms used in this Agreement that are defined in Article 9
of the UCC and not otherwise defined herein have the meanings assigned to them
in Article 9 of the UCC.

 

(b)                                 Unless otherwise indicated, any reference to any agreement
or instrument will be deemed to include a reference to that agreement or
instrument as assigned, amended, supplemented, amended and restated, or
otherwise modified and in effect from time to time or replaced in accordance
with the terms of this Agreement.

 

(c)                                  The use in this Agreement of the word “include” or “including,”
when following any general statement, term or matter, will not be construed to
limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not
nonlimiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but will be deemed to
refer to all other items or matters that fall within the broadest possible
scope of such general statement, term or matter.  The word “will” shall be construed to have
the same meaning and effect as the word “shall.”

 

(d)                                 References to “Sections,” “clauses,” “recitals” and the “preamble”
will be to Sections, clauses, recitals and the preamble, respectively, of this
Agreement unless otherwise specifically provided.  References to “Articles” will be to Articles
of this Agreement unless otherwise specifically provided.  References to “Exhibits” and “Schedules” will
be to Exhibits and Schedules, respectively, to this Agreement unless otherwise
specifically provided.

 

(e)                                  Notwithstanding anything to the contrary in this Agreement,
any references contained herein to any section, clause, paragraph, definition
or other provision of the Master ISDAs or the Junior Indenture (including any
definition contained therein) shall be deemed to be a reference to such
section, clause, paragraph, definition or other provision as in effect on the
date of this Agreement; provided, that any reference to any such
section, clause, paragraph or other provision shall refer to such section,
clause, paragraph or other provision of the Master ISDAs or the Junior
Indenture (including any definition contained therein) as amended or modified
from time to time if such amendment or modification has been (1) made in
accordance with the Master ISDAs and the Junior Indenture and (2) prior to
the Discharge of ISDA Obligations, approved in a writing delivered to the
Junior Notes Trustee by, or on behalf of, the requisite Holders of ISDA
Obligations as are needed (if any) under the terms of the Master ISDAs to
approve such amendment or modification. 
For purposes of this Section 1.2(e), entering into a trade, hedge
or other transaction under a Master ISDA shall not be deemed to be an amendment
or modification thereof.

 

(f)                                    This Agreement, the ISDA Documents and the Junior Notes
Documents shall be construed without regard to the identity of the party who
drafted them and as though the parties participated equally in drafting
them.  Consequently, each of the parties
acknowledges 

 

10

 

and
agrees that any rule of construction that a document is to be construed
against the drafting party will not be applicable to this Agreement, the ISDA
Documents or the Junior Notes Documents.

 

ARTICLE 2.  REPRESENTATIONS AND WARRANTIES

 

Each of the Facility Agent
and the Junior Notes Trustee hereby represents, warrants, acknowledges and
agrees on behalf of itself and the holders of the applicable Secured
Obligations that (i) it has the corporate power and authority and the
legal right to execute and deliver and perform its obligations under this
Agreement and has taken all necessary corporate action to authorize its
execution, delivery and performance of this Agreement and (ii) this
Agreement constitutes a valid and legally binding obligation of such Person,
enforceable against such Person in accordance with its terms.

 

ARTICLE 3.  SUBORDINATION

 

SECTION 3.1                                                  Priority of Payments.  (a) Notwithstanding the terms of the
Junior Notes Documents, except as provided in Section 3.1(b), (i) Holdings
and each Pledgor hereby agrees that it shall not make and the Junior Notes
Trustee hereby agrees that it will not accept any payment or distribution with
respect to the Junior Notes, including any payment or distribution received
through the exercise of any right of setoff, counterclaim or crossclaim, until
the Discharge of ISDA Obligations and (ii) the Junior Notes may not be
purchased or redeemed (mandatorily or optionally) by Holdings or any Pledgor
and Holdings shall not make a Change of Control Offer or a Net Proceeds Offer
(and the Junior Indenture shall so provide) and the Junior Notes Trustee and
the Holders of Junior Notes shall not accept a Change of Control Offer or a Net
Proceeds Offer, until the Discharge of ISDA Obligations.

 

(b)                                 Notwithstanding anything in Section 3.1(a) to the
contrary, Holdings may make to the Junior Notes Trustee and the Junior Notes
Trustee may accept (1) any scheduled payments in respect of interest on
the Junior Notes on a non-accelerated basis, (2) any payment of a Tax
Gross-Up Amount on a non-accelerated basis, (3) if the maturity of any of
the ISDA Obligations is extended past the maturity date of the Junior Notes
with the agreement of the Holders of such ISDA Obligations (whether in
connection with any repayment, refinancing or restructuring of such ISDA
Obligations or otherwise), any scheduled payments in respect of principal on
the Junior Notes and (4) any
voluntary prepayment of principal of or interest on the Junior Notes and any
related Tax Gross-Up Amount to the extent such voluntary prepayment is
permitted under this Agreement, all in accordance with the terms of the Junior
Notes Documents, subject to the following limitations:

 

(i)                                     If the Facility Agent gives
written notice to the Junior Notes Trustee and Holdings that an ISDA Default
has occurred and is continuing (other than an ISDA Default that results solely
from a failure by Holdings to timely make any payment described in the
preceding clause (3) of this Section 3.1(b)), no payment or
distribution on the Junior Notes shall be made by Holdings (or any Pledgor) or
accepted by the Junior Notes Trustee on the Junior Notes for a period of time
commencing upon delivery by the Facility Agent to Holdings and the Junior Notes
Trustee of written notice stating that an ISDA Default exists or 

 

11

 

would be created by the making of such payment and continuing until the
date on which all ISDA Defaults have been cured or waived; provided, however,
that interest payments and Tax Gross-Up Amounts may be made only on a
non-accelerated basis out of, and to the extent of, the Escrow Amount in the Escrow
Account; and

 

(ii)                                  Upon written notice from the
Facility Agent of the cure or waiver of any ISDA Default, Holdings may make,
and the Junior Notes Trustee may receive, any payments of the Junior Notes (on
a non-accelerated basis) to the extent, if any, such payment would be permitted
under this Section 3.1.

 

(c)                                  No ISDA Default shall be deemed to have been waived for
purposes of this Section 3.1 unless and until Holdings and the applicable
Pledgors party to the Master ISDAs shall have received a written waiver in
accordance with the Master ISDAs from the Facility Agent.

 

(d)                                 Notwithstanding this Section 3.1, the Junior Notes
Obligations shall be due and payable in accordance with the Junior Notes
Documents (including upon the maturity of the Junior Notes) and the failure of
Holdings to make any payment with respect to the Junior Notes by reason of the
operation of this Section 3.1 shall not be construed as preventing the
occurrence of a default or event of default under the Junior Notes Documents.

 

(e)                                  The Pledgors shall not undertake, and the Junior Notes
Trustee shall not seek, any guarantee of the Junior Notes or the Junior
Indenture other than the guarantees thereof in existence on the date of this
Agreement, provided that, subject to the Junior Indenture, all Subsidiaries of
Holdings that at any time guarantee the ISDA Obligations will also guarantee
the Junior Notes, subject to the subordination and standstill terms set out
herein.

 

(f)                                    To the extent there is any conflict between this Section 3.1
and any other section of this Agreement, the provisions of this Section 3.1
shall govern.

 

SECTION 3.2                                                  Priority of Liens.  Notwithstanding anything else contained
herein (other than Section 3.1 above) or in any of the other Secured Debt
Documents, the parties hereto agree that:

 

(a)                                  the grant of Liens securing the ISDA Obligations pursuant to
the ISDA Documents and the grant of Liens securing the Junior Notes Obligations
pursuant to the Junior Notes Documents, respectively, create two separate and
distinct Liens;

 

(b)                                 the Liens upon the Shared Collateral securing the Junior
Notes Obligations pursuant to the Junior Notes Documents are each subject and
subordinate to the Liens upon the Shared Collateral securing the ISDA
Obligations pursuant to the ISDA Documents; and

 

(c)                                  the Liens upon the Escrow Account (and in each case the
funds and other property deposited therein or credited thereto) secure the
Junior Notes Obligations, and no other Person, other than the Junior Notes
Trustee and the Holders of the Junior Notes (including any Holder of ISDA
Obligations) shall have a security interest in such accounts or the funds
deposited therein or credited thereto.

 

12

 

For avoidance of doubt, the
Facility Agent shall not have any Lien or other interest in the Escrow Account
(and in each case the funds and other property deposited therein or credited
thereto) described in the foregoing clause (c).

 

SECTION 3.3                                                  Standstill Provisions.

 

(a)                                  Non Payment Default.  Until the Discharge of ISDA Obligations,
except as provided in Sections 3.3(b) and 3.3(c), and except in
connection with a failure to pay amounts due at maturity, the Junior Notes
Trustee and the Holders of the Junior Notes agree to not take any Enforcement
Action with respect to the Junior Notes or the Junior Notes Guarantee for a
period commencing upon the occurrence of an Event of Default under the Junior
Indenture and continuing until the earlier to occur of (x) any Insolvency
or Liquidation Proceeding with respect to Holdings or any ISDA Party and (y) the
passage of 365 days from the date of a Notes Default Notice where the Event of
Default described in this Section 3.3(a) shall not have been cured or
waived within such 365 day period.

 

(b)                                 Interest Payment Default.  Until the Discharge of ISDA Obligations,
except as provided in Sections 3.3(a) and 3.3(c), in the event that (i) the
Junior Notes Trustee fails to pay interest on the Junior Notes on the 30th day
after Holdings fails to pay interest on the Junior Notes when due after the use
of all funds available in the Escrow Account or (ii) any payment of
interest on the Junior Notes is made from the Escrow Account and Holdings has
not replenished the funds in the Escrow Account within two (2) Business
Days so that the amounts contained therein equal the Escrow Amount, the Junior
Notes Trustee and the Holders of the Junior Notes agree to not take any
Enforcement Action with respect to the Junior Notes or the Junior Notes
Guarantee for a period commencing upon the occurrence of an Event of Default
and continuing until the earlier to occur of (x) any Insolvency or
Liquidation Proceeding with respect to Holdings or any ISDA Party and (y) the
passage of 365 days from the date of a Notes Default Notice where the Event of
Default described in this Section 3.3(b) shall not have been cured or
waived within such 365 day period.

 

(c)                                  Bankruptcy Standstill.  Until the Discharge of ISDA Obligations, upon
the commencement of an Insolvency or Liquidation Proceeding, a standstill
period shall take effect (the “Bankruptcy Standstill”).  A Bankruptcy
Standstill shall not be limited in duration (except as provided in the
foregoing sentence).  During a Bankruptcy
Standstill, neither the Junior Notes Trustee nor the Holders of the Junior
Notes will be permitted to take Enforcement Actions other than to:

 

(i)                                     accelerate the Junior Notes;

 

(ii)                                  file a proof of claim;

 

(iii)                               file any necessary defensive
pleadings in the proceedings in opposition to challenges to their claims by
third parties;

 

(iv)                              take any actions to preserve
their Liens;

 

(v)                                 object to
debtor-in-possession and cash collateral orders that prescribe or limit plan
terms;

 

13

 

(vi)                              object to sale orders that
do not provide for junior, as well as senior, Liens attaching to the sale
proceeds (provided that no such action shall result in the Junior Notes Trustee
or any Holder of the Junior Notes improving their position relative to the
Facility Agent or the Holders of the ISDA Obligations);

 

(vii)                           seek junior adequate
protection Liens where the Facility Agent is granted senior adequate protection
Liens (provided that no such action shall result in the Junior Notes Trustee or
any Holder of the Junior Notes improving their position relative to the
Facility Agent or the Holders of the ISDA Obligations);

 

(viii)                        vote on a plan except where
any portion of the ISDA Obligations is in the same class as the Junior Notes
(as it relates to voting on a plan by creditors of such class);

 

(ix)                                deliver a Notice of Control
(as such term is defined in the Escrow Agreement) in accordance with Section 7
of the Escrow Agreement; and

 

(x)                                   draw on the Escrow Account
in accordance with Section 11 of the Escrow Agreement and give any notice
or direction in connection therewith.

 

(d)                                 Any set-off rights that the Junior Notes Trustee or the
Holders of the Junior Notes may have whether by contract, statute, at law or in
equity shall be subject to the provisions of this Section 3.3.

 

(e)                                  Notwithstanding Sections 3.3(a) and 3.3(b) above,
outside the context of an Insolvency or Liquidation Proceeding, the Junior
Notes Trustee and the Holders of the Junior Notes shall be permitted to take
any action to:

 

(i)                                     preserve the Junior Lien and
to preserve the rights of the Junior Notes Trustee and the Holders of the
Junior Notes against the Guarantors under the Junior Notes Guarantee;

 

(ii)                                  preserve the Lien on the
Escrow Account in favor of the Junior Notes Trustee and the Holders of the
Junior Notes and to preserve the rights of the Junior Notes Trustee and the
Holders of the Junior Notes against Holdings under the Escrow Agreement;

 

(iii)                               deliver a Notice of Control
(as such term is defined in the Escrow Agreement) in accordance with Section 7
of the Escrow Agreement; and

 

(iv)                              draw on the Escrow Account
in accordance with Section 11 of the Escrow Agreement and give any notice
or direction in connection therewith.

 

(f)                                    Notwithstanding
the remainder of this Section 3.3, the Junior Notes Trustee and the
Holders of the Junior Notes shall at all times be permitted to take any action
(including sending any relevant notice or direction) that is consistent with
this Agreement with respect to the Escrow Account and funds on deposit therein.

 

14

 

SECTION 3.4                                                  Restrictions on Enforcement of Liens.

 

(a)                                  Until the Discharge of ISDA Obligations, the Facility Agent
will have, subject to the exceptions set forth below in clauses (1) through
(4), the exclusive right to enforce, collect or realize on any Shared
Collateral or exercise any other right or remedy with respect to the Shared
Collateral.  Neither the Junior Notes
Trustee nor the Holders of the Junior Notes may take any action to enforce,
collect or realize on any Shared Collateral or exercise any other right or
remedy with respect to the Shared Collateral. 
Notwithstanding the foregoing, the Junior Notes Trustee and the Holders
of the Junior Notes may take action with respect to the Shared Collateral:

 

(1)                                  at any time after the
Discharge of ISDA Obligations;

 

(2)                                  as necessary to redeem any
Shared Collateral in a creditor’s redemption permitted under Section 9-623
of the UCC (provided that any such redemption results in a Discharge of ISDA
Obligations) or to deliver any notice or demand necessary to enforce (subject
to the prior Discharge of ISDA Obligations) any right to claim, take or receive
proceeds of Shared Collateral remaining after the Discharge of ISDA Obligations
in the event of foreclosure;

 

(3)                                  as necessary to perfect or
establish the priority (subject to Liens securing the ISDA Obligations) of the
Liens securing the Junior Notes Obligations and Junior Notes Guarantee upon any
Shared Collateral; provided that the Junior Notes Trustee may not
require the Facility Agent or any other Holder of ISDA Obligations to
relinquish possession or control of any Shared Collateral; and

 

(4)                                  as necessary to create,
prove, preserve or protect (but not enforce) the Liens upon any Shared
Collateral.

 

(b)                                 Until the Discharge of ISDA Obligations, none of the Junior
Notes Trustee or the Holders of the Junior Notes will:

 

(1)                                  request judicial relief, in
an Insolvency or Liquidation Proceeding or in any other court, that would (A) hinder,
delay, limit or prohibit the lawful exercise or enforcement of any right or remedy
otherwise available to the Holders of ISDA Obligations in respect of the Liens
securing the ISDA Obligations (including the Guarantee and Collateral
Agreement) or (B) limit, invalidate, avoid or set aside any Lien securing
the ISDA Obligations or (C) subordinate the Liens securing the ISDA
Obligations (including the Guarantee and Collateral Agreement) to the Liens
securing the Junior Notes Obligations and the Junior Notes Guarantee or (D) grant
the Liens securing the Junior Notes Obligations and the Junior Notes Guarantee
equal ranking to the Liens securing the ISDA Obligations (including the
Guarantee and Collateral Agreement);

 

(2)                                  oppose or otherwise contest
any motion for relief from the automatic stay or from any injunction against
foreclosure or enforcement of Liens securing the ISDA Obligations made by any
Holder of ISDA Obligations or the Facility Agent  in any Insolvency or Liquidation Proceedings;

 

15

 

(3)                                  oppose or otherwise contest
any lawful exercise by any Holder of ISDA Obligations or the Facility Agent of
the right to credit bid ISDA Obligations at any sale in foreclosure of Liens
securing the ISDA Obligations; or

 

(4)                                  oppose or otherwise contest
any other request for judicial relief made in any court by any Holder of ISDA
Obligations or the Facility Agent relating to the enforcement of any Lien
securing the ISDA Obligations (including the Guarantee and Collateral
Agreement).

 

(c)                                  At any time prior to the Discharge of ISDA Obligations, no
payment of money (or the equivalent of money) will be made from the proceeds of
Shared Collateral by Holdings or any other Pledgor to the Junior Note Trustee
or any Holder of Junior Notes (including, without limitation, payments and
prepayments made for application to Junior Notes and all other payments and
deposits made pursuant to any provision of any Junior Notes Document).

 

(d)                                 All proceeds of Shared Collateral received by the Junior
Note Trustee or any Holder of Junior Notes at any time prior to the Discharge
of ISDA Obligations in violation of Section 3.4(c) will be held in
trust by the Junior Note Trustee or the applicable Holder of Junior Notes for
the account of the Holders of ISDA Obligations and remitted to the Facility
Agent upon demand by the Facility Agent. 
The Liens securing the Junior Notes Obligations will remain attached to
and enforceable against all proceeds so held or remitted.  All proceeds of Shared Collateral received by
the Junior Notes Trustee or the Holders of the Junior Notes not in violation of
Section 3.4(c) will be received by such recipient free from the Liens
securing the ISDA Obligations and all other Liens.

 

(e)                                  No Secured Party will challenge the validity,
enforceability, perfection or priority of any Lien of any other Secured Party.

 

SECTION 3.5                                                  Waiver of Right of Marshalling.

 

(a)                                  Prior to the Discharge of ISDA Obligations, Holders of
Junior Notes and the Junior Notes Trustee may not assert or enforce any right
of marshalling accorded to a junior lienholder, as against the Holders of ISDA
Obligations and the Facility Agent (in their capacity as priority lienholders).

 

(b)                                 Following the Discharge of ISDA Obligations, the Holders of
Junior Notes and the Junior Notes Trustee may assert their right under the UCC
or otherwise to any proceeds remaining following a sale or other disposition of
Shared Collateral by, or on behalf of, the Holders of ISDA Obligations.

 

SECTION 3.6                                                  Discretion in Enforcement of ISDA Liens.  In exercising
rights and remedies with respect to the Shared Collateral, the Facility Agent
may enforce (or refrain from enforcing) the provisions of the ISDA Documents
and exercise (or refrain from exercising) remedies thereunder or any such
rights and remedies, all in such order and in such manner as it may determine
in the exercise of its sole and exclusive discretion, including:

 

16

 

(1)                                  the exercise or forebearance
from exercise of all rights and remedies in respect of the Shared Collateral
and/or the ISDA Obligations;

 

(2)                                  the enforcement or
forebearance from enforcement of any ISDA Lien in respect of the Shared
Collateral;

 

(3)                                  the exercise or forebearance
from exercise of rights and powers of a holder of shares of stock included in
the Shared Collateral to the extent provided in the ISDA Security Documents;

 

(4)                                  the acceptance of the Shared
Collateral in full or partial satisfaction of the ISDA Obligations in
compliance with the requirements of the UCC; and

 

(5)                                  the exercise or forebearance
from exercise of all rights and remedies of a secured lender under the UCC or
any similar law of any applicable jurisdiction or in equity.

 

SECTION 3.7                                                  Discretion in Enforcement of ISDA Obligations.  Without in any way
limiting the generality of Section 3.4, the Holders of ISDA Obligations
and the Facility Agent may, at any time and from time to time, without the
consent of or notice to Holders of Junior Notes or the Junior Notes Trustee,
without incurring responsibility to Holders of Junior Notes and the Junior
Notes Trustee and without impairing or releasing the subordination provided in
this Agreement or the obligations hereunder of Holders of Junior Notes and the
Junior Notes Trustee, do any one or more of the following:

 

(a)                                  change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, the ISDA Obligations, enter into transactions
under the ISDA Documents or otherwise amend or supplement in any manner the
ISDA Obligations, or any instrument evidencing the ISDA Obligations or any
agreement under which the ISDA Obligations are outstanding or amend, restate or
modify in any way the terms and conditions of any trade or transaction which is
from time to time entered into between the Facility Agent and Holdings or any
Pledgor under the ISDA Documents or any transaction or arrangement made by the
Facility Agent with a third party either on behalf of Holdings or any Pledgor
or which benefits Holdings or any Pledgor;

 

(b)                                 release any Person or entity liable in any manner for the
collection of the ISDA Obligations;

 

(c)                                  release any ISDA Lien on any Collateral; and

 

(d)                                 exercise or refrain from exercising any rights against
Holdings and any Pledgor.

 

SECTION 3.8                                                  Insolvency or Liquidation Proceedings.

 

(a)                                  If in any Insolvency or Liquidation Proceeding and prior to
the Discharge of ISDA Obligations, the Facility Agent, on behalf of the Holders
of the ISDA Obligations, consents to any order:

 

17

 

(1)                                  for use of cash collateral;

 

(2)                                  approving a
debtor-in-possession financing secured by a Lien that is senior to or on a
parity with all ISDA Liens upon any property of the estate in such Insolvency
or Liquidation Proceeding;

 

(3)                                  granting any relief on
account of ISDA Obligations as adequate protection (or its equivalent) for the
benefit of the Holders of ISDA Obligations in any Collateral subject to ISDA
Liens; or

 

(4)                                  relating to a sale of assets
of Holdings or any other Pledgor that provides, to the extent the assets sold
are to be free and clear of Liens, that all ISDA Liens and Junior Liens will
attach to the proceeds of the sale,

 

then, the Holders of Junior
Notes, in their capacity as Holders or representatives of secured claims, and
the Junior Notes Trustee, subject to their rights under Section 3.3(c)(v) and
(vi), will not oppose or otherwise contest the entry of such order, so long as
none of the Holders of ISDA Obligations or the Facility Agent in any respect
opposes or otherwise contests any request made by any Holder of Junior Notes or
the Junior Notes Trustee for the grant to the Junior Notes Trustee, for the
benefit of the Holders of Junior Notes, of Junior Liens upon any property on
which Liens are (or will be) granted under such order to secure the ISDA
Obligations, co-extensive in all respects with, but subordinated (as set forth
in Section 3.2) to, such Lien and all ISDA Liens on such property (and, in
the case of the Holders of Junior Notes, subordinated to the Lien on such
Collateral securing the ISDA Obligations).

 

(b)                                 The Holders of Junior Notes or the Junior Notes Trustee will
not file or prosecute in any Insolvency or Liquidation Proceeding any motion
for adequate protection (or any comparable request for relief) based upon their
interest in the Shared Collateral under the Junior Liens, except that:

 

(1)                                  they may freely seek and
obtain relief: (A) granting a junior Lien co-extensive in all respects
with, but subordinated (as set forth in Section 3.2) to, all Liens granted
in the Insolvency or Liquidation Proceeding to, or for the benefit of, the
Holders of ISDA Obligations; or (B) in connection with the confirmation of
any plan of reorganization or similar dispositive restructuring plan; and

 

(2)                                  they may freely seek and
obtain any relief upon a motion for adequate protection (or any comparable
relief), without any condition or restriction whatsoever, at any time after the
Discharge of ISDA Obligations.

 

SECTION 3.9                                                  Certain Notices in Junior Notes Documents.  Prior to the
Discharge of ISDA Obligations, the Holders of Junior Notes and the Junior Notes
Trustee agree that each Junior Notes Document that secures Junior Notes
Obligations (but not also securing ISDA Obligations) will include the following
language (with such changes as are necessary to conform the following language
to the defined terms used in such Junior Notes Document):

 

“Notwithstanding anything herein to the
contrary, payment of the Notes, the lien and security interest granted to the
Trustee pursuant 

 

18

 

to this Agreement and the exercise of any
right or remedy by such Trustee hereunder are subject to the provisions of the
Intercreditor and Subordination Agreement, dated as of September 22, 2009
(as amended, amended and restated, supplemented or otherwise modified and in
effect from time to time, the “Intercreditor Agreement”), among MxEnergy Holdings Inc.,
the other Pledgors from time to time party thereto, Sempra Energy Trading LLC,
as Facility Agent, and Law Debenture Trust Company of New York, as Junior Notes
Trustee.  In the event of any conflict
between the terms of the Intercreditor Agreement and this Agreement, the terms
of the Intercreditor Agreement will govern.”

 

provided, however, that if the jurisdiction in which any such Junior
Notes Document will be filed prohibits the inclusion of the language above or
would prevent a document containing such language from being recorded, the
Junior Notes Trustee and the Facility Agent agree, prior to such Junior Notes Document
being entered into, to negotiate in good faith replacement language stating
that the lien and security interest granted under such Junior Notes Document is
subject to the provisions of this Agreement.

 

SECTION 3.10                                            Prepayment of Junior Notes from Replacement Debt.  Prior to the
Discharge of ISDA Obligations, the Junior Notes may not be prepaid from the
proceeds of Replacement Debt without the consent of the Facility Agent unless
the Facility Agent determines in its reasonable discretion that:

 

(i)                                     the maturity date of the
Replacement Debt is longer than the Junior Notes;

 

(ii)                                  the interest rate on the
Replacement Debt is no greater than 120 basis points above the interest rate on
the Junior Notes as of the Issue Date;

 

(iii)                               the amount of the Replacement
Debt is less than or equal to the prepaid amount of the Junior Notes plus
accrued and unpaid interest;

 

(iv)                              the covenants and events of
default for the Replacement Debt are substantially identical to the covenants
and events of default for the Junior Notes contained in the Junior Indenture;

 

(v)                                 the holders of the
Replacement Debt and the Facility Agent shall have executed and delivered an
intercreditor agreement which is on the same terms as this Agreement; and

 

(vi)                              there are no other
improvements in the terms of the Replacement Debt in comparison to the terms of
the Junior Notes.

 

SECTION 3.11                                            Prepayment of Notes from a Private Equity Offering.  Prior to the
Discharge of ISDA Obligations, the Junior Notes may not be prepaid from the
proceeds of a Private Equity Offering without the consent of the Facility Agent
unless:

 

19

 

(i)                                     the Person or Persons that
purchase the Private Equity execute a Stockholders Agreement Joinder (as
provided for in the Stockholders Agreement);

 

(ii)                                  the rights of the holder of
the Class B Common Stock are fully maintained and unimpaired after giving
effect to the issuance and sale of the Private Equity; and

 

(iii)                               immediately prior to and
after giving effect to the issuance or sale of the Private Equity, the
requirements set forth in Part 13(a)(x)(F) of the Master ISDAs are
satisfied.

 

Except as set forth in
Sections 3.10 and 3.11 or pursuant to a Qualified Initial Public Offering
by Holdings, prior to the Discharge of ISDA Obligations the Junior Notes may
not be repaid, redeemed, refinanced or purchased by Holdings or any of its
Subsidiaries prior to the Stated Maturity of the Junior Notes.

 

ARTICLE 4.  INTERCREDITOR RELATIONS

 

SECTION 4.1                                                  Application of Proceeds in Distributions by the Facility
Agent.

 

(a)                                  The Facility Agent will apply the proceeds of any
collection, sale, foreclosure or other realization upon any Shared Collateral
and the proceeds of any insurance policy required under any ISDA Document in
the following order of application (in each case to the extent of such
proceeds):

 

FIRST, to the payment of all
amounts payable under the ISDA Documents on account of the Facility Agent’s
fees and any legal fees, costs and expenses or other liabilities of any kind
incurred by the Facility Agent or any co-trustee or agent of the Facility Agent
in connection with (including the enforcement of) any ISDA Document;

 

SECOND, to the Facility Agent
for application to the payment of all outstanding ISDA Obligations that are
then due and payable in such order as may be provided in the ISDA Documents in
an amount sufficient to pay in full in cash all outstanding ISDA Obligations
that are then due and payable (including all interest accrued thereon after the
commencement of any Insolvency or Liquidation Proceeding at the rate, including
any applicable post-default rate, specified in the ISDA Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such
proceeding, and including the discharge or cash collateralization (at 105% of
the aggregate undrawn amount) of all outstanding letters of credit and
guarantees issued in connection with the Master ISDAs);

 

THIRD, to the payment of all
amounts payable under the Junior Notes Documents on account of the fees and any
legal fees, costs and expenses or other liabilities of any kind incurred by any
Junior Notes Trustee or other trustee or agent with respect to the Junior
Notes;

 

FOURTH, to the Junior Notes
Trustee for application to the payment of all outstanding Junior Obligations
then due and payable in such order as may be provided in 

 

20

 

the
Junior Notes Documents in an amount sufficient to pay in full in cash all
Junior Obligations then due and payable (including, to the extent legally
permitted, all interest accrued thereon after the commencement of any
Insolvency or Liquidation Proceeding at the rate, including any applicable
post-default rate, specified in the Junior Notes Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such
proceeding); and

 

FIFTH, any surplus remaining
after the payment in full in cash of the amounts described in the preceding
clauses will be paid to Holdings or the applicable Pledgor, as the case may be,
its successors or assigns, or as a court of competent jurisdiction may direct.

 

(b)                                 In connection with the application of proceeds pursuant to Section 4.1(a),
the Facility Agent may (acting in accordance with the applicable Secured Debt
Documents) sell any non-cash proceeds for cash prior to the application of the
proceeds thereof.

 

(c)                                  If any representative or any holder of any Secured
Obligation collects or receives any proceeds of any foreclosure, collection or
other enforcement that should have been applied to the payment of a Lien with a
higher priority pursuant to Section 3.2 above, whether after the
commencement of an Insolvency or Liquidation Proceeding or otherwise, such
representative or such holder, as the case may be, shall forthwith deliver the
same to the agent, trustee or representative on behalf of the holders with such
higher priority, for the account of such holders with higher priority, to be
applied in accordance with Section 4.1(a). 
Until so delivered, such proceeds will be held in trust by the
representative or holder that received such proceeds, as the case may be, for
the benefit of the holders with such higher priority.

 

SECTION 4.2                                                  The Escrow Account.

 

(a)                                  Holdings may deposit the Escrow Amount in the Escrow
Account.  So long as no ISDA Default has
occurred and is continuing, if funds are drawn out of the Escrow Account to pay
interest of the Junior Notes or related Tax Gross-Up Amounts, Holdings shall
have the right to fund the Escrow Account in an amount such that the funds in
the Escrow Account will be equal to the Escrow Amount, notwithstanding Section 3.3(a) or
Section 3.3(b).

 

(b)                                 If Holdings has not made a payment of interest on the Junior
Notes or related Tax Gross-Up Amounts on or before the 30th day after an
interest payment due date, the Junior Notes Trustee may draw upon the Escrow
Account to make the required interest payment and related Tax Gross-Up Amounts.

 

(c)                                  If no Default or Potential Termination Event shall have
occurred and is continuing, Holdings may withdraw any interest accrued on the
Escrow Amount on a monthly basis.  If the
Escrow Amount is reduced by reason of a repurchase or reduction in the
principal amount of the Junior Notes permitted by this Agreement, Holdings may
withdraw the amount of such reduction from the Escrow Account.  All amounts withdrawn by Holdings from the
Escrow Account in accordance with this Section 4.2(c) shall be
subject to the ISDA Liens.

 

21

 

SECTION 4.3                                                  Amendments to Junior Notes and Junior Notes Indenture.  The Junior Notes
Trustee shall not enter into any amendments to the Junior Notes or the Junior
Notes Indenture which would (i) increase the rate of interest on the
Junior Notes, both before and after an event of default, (ii) shorten the
stated maturity of the Junior Notes or change the date(s) upon which
principal or interest is due and payable, (iii) change the definition of
Change of Control, Change of Control Offer or Net Proceeds Offer or the
operative provisions relating thereto, (iv) cause any of the affirmative
and negative covenants in the Junior Notes Indenture to be more burdensome on
Holdings and its Subsidiaries or (v) amend or modify Article VI of
the Junior Notes Indenture.

 

ARTICLE 5.  OBLIGATIONS ENFORCEABLE BY

HOLDINGS AND THE OTHER PLEDGORS

 

SECTION 5.1                                                  Release of Liens on Shared Collateral.

 

(a)                                  The Liens securing the Master ISDAs and the Liens securing
the Junior Notes upon the Shared Collateral will be released:

 

(1)                                  in whole, upon, as
applicable, (A) with regard to the Liens securing the Master ISDAs, the
Discharge of ISDA Obligations or (B) with regard to the Liens securing the
Junior Notes, upon payment in full and discharge of all Junior Notes
outstanding under the Junior Indenture and all other Junior Notes Obligations
under the Junior Notes Documents, in accordance therewith;

 

(2)                                  as to any Shared Collateral
that is sold, transferred or otherwise disposed of by Holdings or any other
Pledgor to a Person that is not (either before or after such sale, transfer or
disposition) Holdings or a Subsidiary of Holdings in a transaction or other
circumstance that is permitted by all of the Secured Debt Documents, at the
time of such sale, transfer or other disposition and to the extent of the
interest sold, transferred or otherwise disposed of; and

 

(3)                                  as to any other release of
Shared Collateral, if (A) consent to release of that Shared Collateral has
been given by the Facility Agent and the requisite percentage or number of
Holders of Junior Notes at the time outstanding as provided for in the
applicable Secured Debt Documents and (B) Holdings has delivered an
Officers’ Certificate to each Secured Debt Representative certifying that any
such necessary consents have been obtained.

 

(b)                                 Each Secured Debt Representative hereby agrees for the
benefit of Holdings and the other Pledgors that if at any time it receives:

 

(1)                                  an Officers’ Certificate
stating that (A) the signing officer has read Article 5 of this
Agreement and understands the provisions and the definitions relating hereto, (B) such
officer has made such examination or investigation as is necessary to enable
him or her to express an informed opinion as to whether or not the conditions
precedent in this Agreement and all other Secured Debt Documents, if any,
relating to the 

 

22

 

release of the Shared Collateral have been complied with and (C) in
the opinion of such officer, such conditions precedent, if any, have been
complied with;

 

(2)                                  the proposed instrument or
instruments releasing such Lien as to such property in recordable form, if
applicable; and

 

(3)                                  prior to the Discharge of
ISDA Obligations, the written confirmation of the Facility Agent (such
confirmation to be given following receipt of, and based solely on, the Officers’
Certificate described in clause (1) above) that such release is
permitted by Section 5.1(a) and the ISDA Documents governing the ISDA
Obligations the Holders of which such Facility Agent represents;

 

then such Secured Debt
Representative will execute (with such acknowledgements and/or notarizations as
are required) and deliver such release to Holdings or other applicable Pledgor
on or before the later of (x) the date specified in such request for such
release and (y) the fifth (5th) Business Day after the date of receipt of the
items required by this Section 5.1(b) by such Secured Debt
Representative.

 

(c)                                  Each Secured Debt Representative hereby agrees that, in the
case of any release pursuant to clause (2) of Section 5.1(a), if
the terms of any such sale, transfer or other disposition require the payment
of the purchase price to be contemporaneous with the delivery of the applicable
release, then, at the written request of and at the expense of Holdings or
other applicable Pledgor, such Secured Debt Representative, to the extent
specifically requested, will either (i) be present at and deliver the
release at the closing of such transaction or (ii) deliver the release
under customary escrow arrangements that permit such contemporaneous payment
and delivery of the release.

 

(d)                                 Each Secured Debt Representative hereby agrees that, as soon
as reasonably practicable after receipt of an Officers’ Certificate from
Holdings pursuant to Section 5.1(b)(1) it will, based solely on such
Officers’ Certificate and to the extent required by such Section, either
provide (A) the written confirmation required by Section 5.1(b)(3), (B) a
written statement from the Facility Agent that such release is not permitted by
Section 5.1(a) or (C) a request for further information from
Holdings reasonably necessary to determine  whether  the proposed release is permitted by Section 5.1(a) and
after receipt of such information such Secured Debt Representative will as soon
as reasonably practicable provide either the written confirmation or statement
required pursuant to clause (A) or (B), as applicable.

 

SECTION 5.2                                                  Delivery of Copies to Each Secured Debt Representative.  Holdings hereby
agrees that it will deliver to each Secured Debt Representative a copy of any
Officers’ Certificate delivered to any Secured Debt Representative pursuant to Section 5.1(b),
together with copies of all documents delivered in connection with such
Officers’ Certificate.

 

SECTION 5.3                                                  Secured Debt Representatives not Required to Serve, File or
Record.  The Secured Debt Representatives are not
required to serve, file, register or record any instrument releasing or
subordinating their Liens on any Collateral to any third party; provided, however, that if Holdings or any other Pledgor shall make a written
demand for a termination statement under Section 9-513(c) of the UCC,
the Secured Debt Representatives shall comply 

 

23

 

with
the written request of Holdings or such Pledgor to comply with the requirements
of such UCC provision, subject to confirmation by the Secured Debt
Representatives that the requirements of such UCC provisions have been
satisfied.

 

SECTION 5.4                                                  Release of Liens in Respect of Junior Notes.  The Liens upon the
Shared Collateral securing the Junior Notes pursuant to the Junior Notes
Documents will no longer secure the Junior Notes Obligations, and the right of
the Holders of the Junior Notes to the benefits and proceeds of the Junior
Notes Trustee’s Lien on the Shared Collateral will terminate and be discharged:

 

(1)                                  upon a Legal Defeasance or
Covenant Defeasance (each as defined
under the Junior Indenture) of the Junior
Notes as and to the extent provided in the Junior Notes Documents;

 

(2)                                  upon payment in full and
discharge of all Junior Notes outstanding under the Junior Indenture and all
other Junior Notes Obligations under the Junior Notes Documents, in accordance
therewith; or

 

(3)                                  in whole or in part, with
the consent of the Holders of the requisite percentage of Junior Notes in
accordance with the Junior Notes Documents.

 

ARTICLE 6.  MISCELLANEOUS PROVISIONS

 

SECTION 6.1                                                  Amendment of this Agreement.  No amendment or supplement to the provisions
of this Agreement will be effective unless executed in writing by each party
hereto.

 

SECTION 6.2                                                  Voting.  In connection with any matter under this
Agreement requiring a vote of holders of Secured Debt, the Secured Debt will
cast its votes in accordance with the Secured Debt Documents governing such
Secured Debt.  Following and in
accordance with the outcome of the applicable vote under its Secured Debt
Documents, the Secured Debt Representative of each class of Secured Debt will
cast all of its votes as a block in respect of any vote under this Agreement.

 

SECTION 6.3                                                  Further Assurances.  Upon the reasonable request of any Secured
Debt Representative at any time and from time to time, Holdings and each of the
other Pledgors will promptly execute, acknowledge and deliver such security
documents, instruments, certificates, notices and other documents, and take
such other actions as may be reasonably required, or that such Secured Debt
Representative may reasonably request, to create, perfect, protect, assure or
enforce the ISDA Liens and Junior Liens and the benefits intended to be
conferred, in each case as contemplated by the ISDA Documents and the Junior
Notes Documents, for the benefit of the Holders of ISDA Obligations and Junior
Notes.

 

SECTION 6.4                                                  Bailee for Perfection.  Solely for purposes of perfecting the Junior
Liens in any portion of the Shared Collateral in the possession of the Facility
Agent (or its agents or bailees) as part of the collateral securing the ISDA
Obligations including, without limitation, any instruments, goods, negotiable
documents, tangible chattel paper, certificated securities or money, the
Facility Agent acknowledges that it also holds that property as bailee for the
benefit of the Junior Notes Trustee for the benefit of the Holders of Junior
Notes.

 

24

 

SECTION 6.5                                                  Delivery of Shared Collateral and Proceeds of Shared
Collateral.  Following the Discharge of ISDA Obligations,
the Facility Agent will, to the extent permitted by applicable law, deliver to (1) the
Junior Notes Trustee or (2) such other Person as a court of competent jurisdiction
may otherwise direct, (A) any Shared Collateral held by, or on behalf of,
the Facility Agent or any Holder of ISDA Obligations, and (B) all proceeds
of Shared Collateral held by, or on behalf of, the Facility Agent or any Holder
of ISDA Obligations, whether arising out of an action taken to enforce, collect
or realize upon any Shared Collateral or otherwise.  Such Shared Collateral and such proceeds will
be delivered without recourse and without any representation or warranty
whatsoever as to the enforceability, perfection, priority or sufficiency of any
Lien securing, or guarantee or other supporting obligation for, any ISDA
Obligations or Junior Notes Obligations, together with any necessary
endorsements or as a court of competent jurisdiction may otherwise direct.

 

SECTION 6.6                                                  Successors and Assigns.  (a) Neither Holdings nor any other
Pledgor may delegate any of its duties or assign any of its rights hereunder,
and any attempted delegation or assignment of any such duties or rights will be
null and void.  All obligations of
Holdings and the other Pledgors hereunder will inure to the sole and exclusive
benefit of, and be enforceable by, the Facility Agent, the Junior Notes
Trustee, and each present and future Holder of ISDA Obligations and Junior Notes
Obligations, each of whom will be entitled to enforce this Agreement as a
third-party beneficiary hereof, and all of their respective successors and
assigns.

 

(b)                                 The Facility Agent may assign its rights and obligations, in
whole or in part, under any of the Master ISDAs to RBS or any Affiliate of RBS
and RBS or any Affiliate of RBS may assign such rights and obligations, in
whole or in part, to RBS or any Affiliate of RBS.  The Facility Agent shall give notice of any
such assignment to the Junior Notes Trustee promptly following any such
assignment.

 

SECTION 6.7                                                  Delay and Waiver.  No failure to exercise, no course of dealing
with respect to the exercise of, and no delay in exercising, any right, power
or remedy arising under this Agreement or any of the Junior Notes Documents or
ISDA Documents will impair any such right, power or remedy or operate as a
waiver thereof.  No single or partial
exercise of any such right, power or remedy will preclude any other or future
exercise thereof or the exercise of any other right, power or remedy.  The remedies herein are cumulative and are
not exclusive of any remedies provided by law.

 

SECTION 6.8                                                  Notices.  Any communications, including notices and
instructions, between the parties hereto or notices provided herein to be given
may be given to the following addresses:

 

	
  If
  to the Facility Agent:

  	
  Sempra Energy Trading LLC

  
	
   

  	
  600 Washington Blvd.

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
  Tel: (203) 355-5000

  
	
   

  	
  Fax: (203) 355-5001

  
	
   

  	
   

  
	
   

  	
  With
  a copy to:

  

 

25

 

	
   

  	
  Stroock &
  Stroock & Lavan LLP

  
	
   

  	
  180
  Maiden Lane

  
	
   

  	
  New
  York, NY 10038

  
	
   

  	
  Attn:
  Marvin J. Goldstein, Esq.

  
	
   

  	
  Facsimile:
  (212) 806-6006

  
	
   

  	
  Telephone:
  (212) 806-5400

  
	
   

  	
   

  
	
  If
  to the Junior Notes Trustee:

  	
  Law Debenture Trust Company of New York

  
	
   

  	
  400 Madison Avenue, 4th Floor

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Attn: Corporate Trust Department

  
	
   

  	
  Tel: (212) 750-6474

  
	
   

  	
  Fax: (212) 750-1361

  
	
   

  	
   

  
	
  If
  to Holdings or any other Pledgor:

  	
  MxEnergy Holdings Inc.

  
	
   

  	
  595 Summer Street, Suite 300

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
  Attn: Chief Financial Officer

  
	
   

  	
  Tel: (203) 356-1318

  
	
   

  	
  Fax: (203) 425-9562

  
	
   

  	
   

  
	
   

  	
  With
  copies to:

  
	
   

  	
   

  
	
   

  	
  Paul,
  Hastings, Janofsky & Walker LLP

  
	
   

  	
  75
  East 55th Street

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attn:
  Michael K. Chernick

  
	
   

  	
  Tel:
  (212) 318-6000

  
	
   

  	
  Fax:
  (212) 230-7639

  

 

and if to any other Secured
Debt Representative, to such address as it may specify by written notice to the
parties named above.

 

All notices and
communications will be mailed by first class mail, certified or registered,
return receipt requested, or by overnight air courier guaranteeing next day
delivery, to the relevant address set forth above or, as to holders of Secured
Debt, its address shown on the register kept by the office or agency where the
relevant Secured Debt may be presented for registration of transfer or for
exchange.  To the extent applicable, any
notice or communication will also be so mailed to any Person described in Section 313(c) of
the Trust Indenture Act of 1939, as amended, to the extent required
thereunder.  Failure to mail a notice or
communication to a holder of Secured Debt or any defect in it will not affect
its sufficiency with respect to other holders of Secured Debt.

 

If a notice or communication
is mailed in the manner provided above within the time prescribed, it is duly
given, whether or not the addressee receives it.

 

26

 

SECTION 6.9                                                  Notice Following Discharge of ISDA Obligations.  Promptly following
the Discharge of ISDA Obligations, the Facility Agent will provide written
notice of such Discharge of ISDA Obligations to the Junior Notes Trustee.

 

SECTION 6.10                                            Entire Agreement.  This Agreement states the complete agreement
of the parties relating to the matters set forth herein and supersedes all oral
negotiations and prior writings in respect of such undertaking. In the event of
any conflict between the terms, conditions and provisions of this Agreement and
any such agreement, document or instrument or any Secured Debt Document, the
terms, conditions and provisions of this Agreement shall prevail.

 

SECTION 6.11                                            Severability.  If any provision of this Agreement is
invalid, illegal or unenforceable in any respect or in any jurisdiction, the
validity, legality and enforceability of such provision in all other respects
and of all remaining provisions, and of such provision in all other
jurisdictions, will not in any way be affected or impaired thereby.

 

SECTION 6.12                                            Headings.  Section headings herein have been
inserted for convenience of reference only, are not to be considered a part of
this Agreement and will in no way modify or restrict any of the terms or
provisions hereof.

 

SECTION 6.13                                            Obligations Secured.  All obligations of the Pledgors set forth in
or arising under this Agreement will be Secured Obligations.

 

SECTION 6.14                                            Governing Law.  THE INTERNAL LAW OF THE STATE OF NEW YORK
WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF LAW OF THE STATE OF NEW YORK, CONFLICTS OF LAW, OTHER
THAN SECTION 5-1402 AND SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW
OF THE STATE OF NEW YORK, TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 6.15                                            Consent to Arbitration.

 

(a)                                  Any dispute, controversy, or claim arising out of, relating
to, or in connection with this contract, or the breach, termination, or
validity thereof, shall be finally settled by arbitration.  The arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association (the “AAA”) in effect at the time of the
arbitration, except as they may be modified herein or by mutual agreement of
the parties.  Notwithstanding the
provisions of Section 6.14, the arbitration and this clause shall be
governed by Title 9 (Arbitration) of the United States Code.  The seat of the arbitration shall be New
York, New York, United States of America, and it shall be conducted in the
English language.  The parties submit to
jurisdiction in the state and federal courts in the State, County and City of
New York for the limited purpose of enforcing this agreement to arbitrate.

 

(b)                                 The arbitration shall be conducted by three neutral arbitrators, who
shall be appointed by the AAA.  The arbitrators shall be impartial and
independent.

 

27

 

(c)                                  In order to facilitate the comprehensive resolution of related
disputes, and upon request of any party to the arbitration proceeding, the
arbitration tribunal may consolidate the arbitration proceeding with any other
arbitration proceeding involving any of the parties hereto relating to this
Agreement or to the Related Agreements (whether or not such other proceeding
involves all of the parties hereto).  The
arbitration tribunal shall not consolidate such arbitrations unless it
determines that (i) there are issues of fact or law common to the
various arbitrations so that a consolidated proceeding would be more efficient
than separate proceedings and (ii) no party would be prejudiced as
a result of such consolidation through undue delay or otherwise.  In the event of different rulings on this
question by the arbitration tribunal constituted hereunder and the tribunal
constituted under any other Related Agreement, the ruling of the arbitration
tribunal governing the first proceeding to have been filed shall control.  In the event of the consolidation of one or
more proceedings pursuant to this subsection, the arbitration tribunal
governing the first such proceeding to have been filed shall govern the
consolidated proceeding unless otherwise agreed by all parties to the
proceedings being consolidated.  Solely
for purposes of this subsection (c), (i) a proceeding shall be
deemed to have been filed when the related demand for arbitration is served by
the complaining party and (ii) in the event that two proceedings
shall have been filed on the same day, the proceeding involving the largest
dollar amount in dispute shall be deemed to have been the first filed.

 

(d)                                 The arbitration award shall be final and binding on the
parties.  Judgment upon the award may be
entered by any court having jurisdiction thereof or having jurisdiction over
the relevant party or its assets.

 

SECTION 6.16                                            Waiver of Certain Damages.  NO PARTY SHALL BE ENTITLED TO ANY RECOVERY
UNDER THIS AGREEMENT FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR
INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES.  THIS SECTION SHALL SURVIVE THE
TERMINATION OF THIS AGREEMENT AND ALL TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 6.17                                            Certain Understandings.  Each party to this Agreement acknowledges
that the Facility Agent will engage in transactions with Holdings and its
Subsidiaries pursuant to the Master ISDAs. 
Neither this Agreement nor the Master ISDAs shall preclude
the Facility Agent from engaging in transactions of a nature like the
transactions contemplated by the Master ISDAs with any other Person.  Without limiting the foregoing, each party
acknowledges that the Facility Agent is engaged in, among other things, dealing
in fuel, and power and related commodities for its own account in the U.S.
wholesale fuel and power markets, and manages positions in fuel and power and
related commodities for others.  The
Facility Agent may (i) take actions under the Master ISDAs that may be
different than the actions the Facility Agent takes for its own account or for
the account of others, even though the circumstances may be the same or similar
and (ii) effect transactions with counterparties that are also
counterparties to other transactions in fuel and/or power or related
commodities with the Facility Agent or for which the Facility Agent is acting
in an agency capacity.  The Facility
Agent and/or its Affiliates may from time to time take proprietary positions
and/or make a market in commodities and/or instruments identical or
economically related to the transactions contemplated by the Master ISDAs, or
may have an investment banking or other commercial relationship with and access
to information from the issuer(s) of financial instruments or other
interests underlying such transactions during 

 

28

 

the term of the
Master ISDAs.  The Facility Agent and/or
its Affiliates may also undertake lawful proprietary activities, including
hedging transactions related to the initiation or termination of a transaction,
that may adversely affect the market price, rate, index or other market factor(s) underlying
the transactions contemplated by the Master ISDAs and consequently the value of
the transactions contemplated by the Master ISDAs.  The parties acknowledge that the relationship
between the Facility Agent and Holdings and its Subsidiaries is a commercial
and not a fiduciary relationship and that neither the Master ISDAs nor this
Agreement shall limit in any manner the ability of the Facility Agent to enter
into any transaction of any nature with any other Person.

 

SECTION 6.18                                            Counterparts.  This Agreement may be executed in any number
of counterparts (including by facsimile or in a pdf file), each of which when
so executed and delivered will be deemed an original, but all such counterparts
together will constitute but one and the same instrument.

 

SECTION 6.19                                            Effectiveness.  This Agreement will become effective upon the
execution of a counterpart hereof by each of the parties hereto and receipt by
each party of written notification of such execution and written or telephonic
authorization of delivery thereof.

 

SECTION 6.20                                            Additional Pledgors.  Holdings will cause each Person that becomes
a Pledgor or is required by any Secured Debt Document to become a party to this
Agreement to become a party to this Agreement, for all purposes of this
Agreement, by causing such Person to execute and deliver to the parties hereto
an Intercreditor Agreement Joinder, whereupon such Person will be bound by the
terms hereof to the same extent as if it had executed and delivered this Agreement
as of the date hereof.  Holdings shall
promptly provide each Secured Debt Representative with a copy of each
Intercreditor Agreement Joinder executed and delivered pursuant to this Section 6.20.

 

SECTION 6.21                                            Termination; Reinstatement.  This Agreement shall terminate, subject to
reinstatement in accordance with this Section 6.21, upon the Discharge of
ISDA Obligations.  This Agreement,
including the subordination provisions hereof, will be reinstated if at any
time any payment or distribution in respect of any of the ISDA Obligations is
rescinded or must otherwise be returned in an Insolvency or Liquidation
Proceeding or otherwise by any Holder of ISDA Obligations or any representative
of any such party (whether by demand, settlement, litigation or otherwise).  In the event that any representative or any
Holder of any ISDA Obligation recovers all or any part of a payment or
distribution made with respect to an ISDA Obligation in an Insolvency or
Liquidation Proceeding or otherwise, such representative or Holder, as the case
may be, will forthwith deliver the same to the Facility Agent on behalf of the
Holders of an ISDA Obligation, for the account of the such Holders of an ISDA
Obligation, to be applied in accordance with Section 4.1.  Until so delivered, such proceeds will be
held by the representative or Holder who received such proceeds, for the
benefit of the Holders of an ISDA Obligation.

 

SECTION 6.22                                            Insolvency.  This Agreement will be applicable both before
and after the commencement of any Insolvency or Liquidation Proceeding by or
against any Pledgor.  The relative
rights, as provided for in this Agreement, will continue after the commencement
of any 

 

29

 

such
Insolvency or Liquidation Proceeding on the same basis as prior to the date of
the commencement of any such case, as provided in this Agreement.

 

SECTION 6.23                                            Rights and Immunities of Secured Debt Representatives.  The Facility Agent
will be entitled to all of the rights, protections, immunities and indemnities
set forth in the ISDA Documents, the Junior Notes Trustee will be entitled to
all of the rights, protections, immunities and indemnities set forth in the
Junior Notes Documents, and any future Secured Debt Representative will be entitled
to all of the rights, protections, immunities and indemnities set forth in the
credit agreement, indenture or other agreement governing the applicable Secured
Debt with respect to which such Person will act as representative, in each case
as if specifically set forth herein.  In
no event will any Secured Debt Representative be liable for any act or omission
on the part of any other Secured Debt Representative, Holdings, or the other
Pledgors hereunder.

 

[SIGNATURE
PAGES FOLLOW]

 

30

 

IN WITNESS WHEREOF, the
parties hereto have caused this Intercreditor and Subordination Agreement to be
executed by their respective officers or representatives as of the day and year
first above written.

 

	
   

  	
  MXENERGY HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY (CANADA) LTD.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ONLINE CHOICE, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  

 

[Signature
Page for Intercreditor and Subordination Agreement]

 

 

	
   

  	
  MXENERGY GAS CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:
  President

  

 

[Signature
Page for Intercreditor and Subordination Agreement]

 

 

	
   

  	
  INFOMETER.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MXENERGY SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A. Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEMPRA ENERGY TRADING LLC, as Facility Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Mitchell

  
	
   

  	
   

  	
  Name: Michael Mitchell

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAW DEBENTURE TRUST COMPANY OF NEW YORK, as Junior
  Notes Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony A. Bocchino

  
	
   

  	
   

  	
  Name: Anthony A. Bocchino

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature
Page for Intercreditor and Subordination Agreement]

 

 

EXHIBIT
A

to Intercreditor and Subordination Agreement

 

[FORM OF]

INTERCREDITOR AND SUBORDINATION AGREEMENT JOINDER

 

The undersigned,
                                          ,
a
                              ,
hereby agrees to become party as [a Pledgor] [the Facility Agent] [the Junior
Notes Trustee] under the Intercreditor and Subordination Agreement dated as of September 22,
2009 (as amended, amended and restated, supplemented or otherwise modified and
in effect from time to time, the “Intercreditor Agreement”) among MxEnergy
Holdings Inc., the other Pledgors from time to time party thereto, Sempra
Energy Trading, LLC, as Facility Agent, and
[                    ],
in its capacity as Junior Notes Trustee, and each of the other Pledgors and other
parties from time to time thereto, for all purposes thereof on the terms set
forth therein, and to be bound by the terms of the Intercreditor Agreement as
fully as if the undersigned had executed and delivered the Intercreditor
Agreement as of the date thereof.

 

The provisions of Article 6
of the Intercreditor Agreement will apply with like effect to this
Intercreditor Agreement Joinder. 
Capitalized terms not otherwise defined in this Intercreditor Agreement
Joinder shall have the respective meanings given in the Intercreditor
Agreement.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Intercreditor Agreement Joinder to be executed
by their respective officers or representatives as of
                                    ,
20        .

 

	
   

  	
  [                                                                      ]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]