Document:

Exhibit 10.1

Exhibit 10.1

Execution Version

SECOND AMENDMENT

THIS SECOND AMENDMENT, dated as of September 8, 2011 (this “Amendment”), amends the
Credit Agreement, dated as of November 30, 2010 (as previously amended, the “Credit
Agreement”), among ABM Industries Incorporated (the “Company”), various financial
institutions (the “Lenders”) and Bank of America, N.A., as administrative agent (in such
capacity, the “Administrative Agent”). Capitalized terms used but not otherwise defined
herein have the respective meanings ascribed thereto in the Credit Agreement.

WHEREAS, the Company, the Lenders and the Administrative Agent have entered into the Credit
Agreement;

WHEREAS, the parties hereto desire to amend the Credit Agreement as more fully set forth
herein;

WHEREAS, the parties hereto have agreed that each of Peoples United Bank, Comerica Bank and
The Bank of New York Mellon (collectively, the “Exiting Lenders”) shall cease to be Lenders
under the Credit Agreement; and

WHEREAS, certain Lenders will be increasing the amount of their Loans and their Commitments in
an aggregate amount equal to the outstanding Loans and the Commitments of the Exiting Lenders.

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1 Amendments. Subject to the satisfaction of the conditions precedent set
forth in Section 3, the Credit Agreement is amended as follows:

(a) Section 1 of the Credit Agreement is amended by deleting the table set forth in the
definition of “Applicable Rate” in its entirety and replacing it with the following:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Eurodollar	 	 	 	 	 	 	 
	 	 	 	 	Rate/IBOR	 	 	 	 	 	 	 
	 	 	 	 	Rate/Letters of	 	 	Base Rate	 	 	 	 
	Pricing Level	 	Leverage Ratio	 	Credit	 	 	Loans	 	 	Non-Use Fee	 
	1	 	≥ 2.25 to 1.0
	 	 	1.75	%	 	 	0.75	%	 	 	0.300	%
	2	 	≥ 1.75 to 1.0 but 
< 2.25 to 1.0
	 	 	1.50	%	 	 	0.50	%	 	 	0.275	%
	3	 	≥ 1.25 to 1.0 but 
< 1.75 to 1.0
	 	 	1.25	%	 	 	0.25	%	 	 	0.250	%
	4	 	< 1.25 to 1.0
	 	 	1.00	%	 	 	0	%	 	 	0.225	%

(b) Section 1 of the Credit Agreement is amended by deleting definition of “Maturity Date” in
its entirety and replacing it with the following:

“Maturity Date” means (a) September 8, 2016 or (b) such earlier date upon which
the Loans and other Obligations become due in accordance with the terms hereof.

 

 

 

(c) Section 1 of the Credit Agreement is amended by deleting clause (v) of the definition of
“Permitted Acquisition” in its entirety and replacing it with the following:

(v) both before and after giving effect to such Acquisition, the Leverage
Ratio shall not be greater than 3.25 to 1.0, and

(d) Schedule 2.1 of the Credit Agreement is deleted and replaced with Schedule 2.1
hereto.

SECTION 2 Representations and Warranties. The Company represents and warrants to the
Administrative Agent and the Lenders that, after giving effect to this Amendment:

(a) each representation and warranty set forth in Article V of the Credit Agreement, as
amended hereby, is true and correct in all material respects as of the Effective Date (as defined
below), except to the extent that any such representation and warranty specifically refers to an
earlier date, in which case it shall be true and correct in all material respects as of such
earlier date; and

(b) no Default exists.

SECTION 3 Effectiveness. This Amendment shall become effective as of the date first
written above (the “Effective Date”) when the Administrative Agent shall have received:

(a) counterparts of this Amendment executed by the Borrowers, the Administrative Agent and
each of the Lenders,

(b) a Confirmation, executed by the Subsidiary Guarantors, in the form attached hereto as
Exhibit A and

(c) for the account of each Exiting Lender, (i) from the Company, all principal, accrued
interest and fees owing to such Exiting Lender (including amounts payable pursuant to Section 3.5
of the Credit Agreement, assuming for such purpose that the Loans of the Exiting Lender were
prepaid rather than allocated upon effectiveness of this Amendment (the “Effective Time”))
and (ii) from the Increasing Lenders (as defined in Section 4.1), the amounts described in
clause (b) of Section 4.1.

SECTION 4 Miscellaneous.

4.1 Exiting Lenders. (a) The Borrowers and the Lenders agree that at the Effective
Time (i) the outstanding Revolving Loans (and the participations in Letters of Credit and Swing
Line Loans) of the Exiting Lenders shall be reallocated among certain of the Lenders (the
“Increasing Lenders”) to reflect Schedule 2.1 of the Credit Agreement, as amended by this
Amendment and (ii) the Exiting Lenders shall cease to be Lenders under the Credit Agreement and the
other Loan Documents and shall have no further interests, rights or obligations thereunder;
provided that the Exiting Lenders shall continue to be entitled to the benefits of Section
3.1 (and subject to the requirements of Section 3.1), 3.3, 3.4 and 10.5 of the Credit Agreement
with respect to facts and circumstances occurring prior to the Effective Date.

 

- 2 -

 

(b) To facilitate the allocation described in clause (a), and satisfy the condition
precedent in Section 3(c) of this Amendment, (i) each Increasing Lender shall transfer to
the Administrative Agent an amount such that after giving effect to such transfer, such Increasing
Lender’s Applicable Percentage will be as set forth on Schedule 2.1, and (ii) the
Administrative Agent shall apply the funds received from the Increasing Lenders pursuant to
clause (i) on behalf of the Increasing Lenders (pro rata according to the amount of the
applicable Loans each is required to purchase to achieve the allocation described in clause
(a)), to purchase from each Exiting Lender the applicable outstanding Revolving Loans
(including any Revolving Loans made at the Effective Time), participations in Letters of Credit and
Swing Line Loans.

4.2 Continuing Effectiveness, etc. As amended hereby, the Credit Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all respects. After the
effectiveness of this Amendment, all references in the Credit Agreement and the other Loan
Documents to “Credit Agreement” or similar terms shall refer to the Credit Agreement as amended
hereby.

4.3 General. The provisions of Sections 10.5, 10.7, 10.14 and 10.17 of the Credit
Agreement are incorporated into this Amendment as if fully set forth herein, mutatis mutandis.

4.4 Loan Document. This Amendment is a Loan Document.

[Signature Pages Follow]

 

- 3 -

 

Delivered as of the day and year first above written.

	 	 	 	 	 
	 	ABM INDUSTRIES INCORPORATED

 	 
	 	By:  	/s/ Diego Anthony Scaglione
 	 
	 	 	Title: VP, Treasurer 	 

Second Amendment

S-1

 

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

 	 
	 	By:  	/s/ Fani Davidson
 	 
	 	 	Title: Assistant Vice President 	 

Second Amendment

 

S-2

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as a Lender, as L/C Issuer

and as Swing Line Lender

 	 
	 	By:  	/s/ Ronald J. Drobny
 	 
	 	 	Title:  Senior Vice President 	 

Second Amendment

 

S-3

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Keith Winzenried
 	 
	 	 	Title:  Credit Executive 	 

Second Amendment

 

S-4

 

	 	 	 	 	 
	 	RBS CITIZENS, N.A.,

as a Lender

 	 
	 	By:  	/s/ Paul Darrigo
 	 
	 	 	Title:  SVP 	 

Second Amendment

 

S-5

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Joanne Nasuti
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-6

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Eric Frandson
 	 
	 	 	Title:  Director 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                             /s/ Tom Molitor
 	 
	 	 	Title:  Director 	 

Second Amendment

 

S-7

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Michael P. Dickman
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-8

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Frank J. Jancar
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-9

 

	 	 	 	 	 
	 	SOVEREIGN BANK,

as a Lender

 	 
	 	By:  	/s/ Cameron Gateman
 	 
	 	 	Title:  SVP — Corporate Banking 	 

Second Amendment

 

S-10

 

	 	 	 	 	 
	 	BANK OF THE WEST,

as a Lender

 	 
	 	By:  	/s/ Robert Kido
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-11

 

	 	 	 	 	 
	 	PEOPLE’S UNITED BANK,

as an Exiting Lender

 	 
	 	By:  	/s/ John G. Bundschuh
 	 
	 	 	Title:  Senior Vice President 	 

Second Amendment

 

S-12

 

	 	 	 	 	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

as a Lender

 	 
	 	By:  	/s/ Nupur Kumar
 	 
	 	 	Title:  Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Sanja Gazahi
 	 
	 	 	Title:  Associate 	 

Second Amendment

 

S-13

 

	 	 	 	 	 
	 	COMERICA BANK,

as an Exiting Lender

 	 
	 	By:  	/s/ Joey Powell
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-14

 

	 	 	 	 	 
	 	FIFTH THIRD BANK,

as a Lender

 	 
	 	By:  	/s/ George B. Davis
 	 
	 	 	Title:  Vice President 	 

Second Amendment

 

S-15

 

	 	 	 	 	 
	 	PNC BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Amishi Patel
 	 
	 	 	Title:  Assistant Vice President 	 

Second Amendment

 

S-16

 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Randolph E. Cates
 	 
	 	 	Title:  VP, Senior Relationship Manager 	 

Second Amendment

 

S-17

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY,

as a Lender

 	 
	 	By:  	/s/ Daniel J. Boote
 	 
	 	 	Title:  Senior Vice President 	 

Second Amendment

 

S-18

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as an Exiting Lender

 	 
	 	By:  	/s/ Paul F. Noel
 	 
	 	 	Title:  Managing Director 	 

Second Amendment

 

S-19

 

SCHEDULE 2.1

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Applicable Percentage	 
	Bank of America, N.A.
	 	$	125,000,000.00	 	 	 	19.230769231	%
	 
	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, National Association
	 	$	90,000,000.00	 	 	 	13.846153846	%
	 
	 	 	 	 	 	 	 	 
	RBS Citizens, N.A.
	 	$	65,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch
	 	$	65,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	Wells Fargo Bank, National Association
	 	$	60,000,000.00	 	 	 	9.230769231	%
	 
	 	 	 	 	 	 	 	 
	US Bank, National Association
	 	$	50,000,000.00	 	 	 	7.692307692	%
	 
	 	 	 	 	 	 	 	 
	KeyBank National Association
	 	$	37,500,000.00	 	 	 	5.769230769	%
	 
	 	 	 	 	 	 	 	 
	Sovereign Bank
	 	$	37,500,000.00	 	 	 	5.769230769	%
	 
	 	 	 	 	 	 	 	 
	Bank of the West
	 	$	20,000,000.00	 	 	 	3.076923077	%
	 
	 	 	 	 	 	 	 	 
	HSBC Bank USA, National Association
	 	$	20,000,000.00	 	 	 	3.076923077	%
	 
	 	 	 	 	 	 	 	 
	PNC Bank, N.A.
	 	$	25,000,000.00	 	 	 	3.846153846	%
	 
	 	 	 	 	 	 	 	 
	Credit Suisse AG, Cayman Islands Branch
	 	$	15,000,000.00	 	 	 	2.307692308	%
	 
	 	 	 	 	 	 	 	 
	Fifth Third Bank
	 	$	25,000,000.00	 	 	 	3.846153846	%
	 
	 	 	 	 	 	 	 	 
	The Northern Trust Company
	 	$	15,000,000.00	 	 	 	2.307692308	%
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Total
	 	$	650,000,000.00	 	 	 	100.000000000	%
	 	 	 	 	 	 	 

 

 

 

Exhibit A

CONFIRMATION

Dated as of September 8, 2011

To: Bank of America, N.A., individually and as Administrative Agent, and the other financial
institutions party to the Credit Agreement referred to below

Please refer to (a) the Credit Agreement, dated as of November 30, 2010 (as previously
amended, the “Credit Agreement”), among ABM Industries Incorporated (the
“Company”), various financial institutions (the “Lenders”) and Bank of America,
N.A., as administrative agent (in such capacity, the “Administrative Agent”); (b) the
Subsidiary Guaranties (as defined in the Credit Agreement) and (c) the Second Amendment to the
Credit Agreement, dated as of the date hereof (the “Second Amendment”).

Each of the undersigned hereby confirms to the Administrative Agent and the Lenders that,
after giving effect to the Second Amendment and the transactions contemplated thereby, the
Subsidiary Guaranties continue in full force and effect and are the legal, valid and binding
obligation of such undersigned, enforceable against such undersigned in accordance with their
terms.

[Signatures begin on next page]

 

 

 

	 	 	 	 	 
	 	ABM JANITORIAL SERVICES, INC.

ABM JANITORIAL SERVICES — MID-ATLANTIC, INC.

ABM JANITORIAL SERVICES — NORTH CENTRAL, INC.

ABM JANITORIAL SERVICES — NORTHEAST, INC.

ABM JANITORIAL SERVICES — NORTHWEST, INC.

ABM JANITORIAL SERVICES — SOUTH CENTRAL, INC.

ABM JANITORIAL SERVICES — SOUTHEAST, LLC

AMERICAN PUBLIC SERVICES

ABM SERVICES, INC.

DIVERSCO, INC.

ONESOURCE FACILITY SERVICES, LLC

ONESOURCE HOLDINGS, LLC

SM NEWCO CORP.

SERVALL SERVICES INC.

ABM FACILITY SERVICES, INC.

ABM SHARED SERVICES, INC.

ABM SECURITY SERVICES, INC.

AMPCO-M

AMPCO SYSTEM PARKING

ABM ELECTRICAL, INC.

ABM ELECTRICAL NETWORK, INC.

LINC BUILDING & ENERGY SOLUTIONS, INC.

LINC INTERNATIONAL, INC.

THE LINC GROUP, LLC

CET ELECTRICAL TESTING LLC

FERGUSON-WILLIAMS, LLC

GREENHOMES AMERICA, LLC

GREENHOMES AMERICA, LP

GREENHOMES MULTI-FAMILY SERVICES, LLC

GREENHOMES PERFORMANCE SERVICES, LLC

HOME PERFORMANCE ENTERPRISES, LLC

KEY ELECTRIC, INC.

LINC FACILITY SERVICES EGYPT, LLC

LINC FACILITY SERVICES IRAQ, LLC

LINC FACILITY SERVICES KUWAIT, LLC

LINC FACILITY SERVICES ME, LLC

LINC FACILITY SERVICES UAE, LLC

LINC GOVERNMENT SERVICES AFGHANISTAN BRANCH, LLC

LINC GOVERNMENT SERVICES, LLC

LINC HEALTH, LLC

LINC HEALTH, INC.

LINC INTERNATIONAL, INC.

LINC MECHANICAL, LLC

LINC NETWORK, LLC

LINC SERVICES, LLC

LINC SERVICES MID-ATLANTIC LLC

LINC WESTERN AIR, LP

MET ELECTRICAL TESTING LLC

PRO MECHANICAL SERVICES, INC.

REEP, INC.

SUNDOWN LIGHTING, INC.

 	 
	 	By:  	/s/ Diego Anthony Scaglione
 	 
	 	 	Title: Treasurerexv4w1

Exhibit 4.1

EXECUTION COPY

 

$1,200,000,000

CREDIT AGREEMENT

Dated as of September 9, 2011

 

Among

CENTERPOINT ENERGY, INC.,

as Borrower,

THE BANKS PARTIES HERETO,

BANK OF AMERICA, N.A.

and

THE ROYAL BANK OF SCOTLAND PLC,

as Co-Syndication Agents,

BARCLAYS BANK PLC, CITIBANK, N.A.,

DEUTSCHE BANK SECURITIES INC.

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

J.P. MORGAN SECURITIES LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

RBS SECURITIES INC., BARCLAYS CAPITAL,

CITIGROUP GLOBAL MARKETS INC., DEUTSCHE BANK SECURITIES INC.,

and

WELLS FARGO SECURITIES, LLC,

as Joint Lead Arrangers and Joint Bookrunners

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	SECTION 1.1. Certain Defined Terms
	 	 	1	 
	SECTION 1.2. Classification of Loans and Borrowings
	 	 	28	 
	SECTION 1.3. Other Definitional Provisions
	 	 	28	 
	SECTION 1.4. Accounting Terms; GAAP
	 	 	29	 
	SECTION 1.5. Letter of Credit Amounts
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II AMOUNTS AND TERMS OF THE LOANS AND LETTERS OF CREDIT
	 	 	29	 
	SECTION 2.1. The Commitments
	 	 	29	 
	SECTION 2.2. Procedure for Revolving Loan Borrowing
	 	 	30	 
	SECTION 2.3. [Reserved]
	 	 	31	 
	SECTION 2.4. Swingline Loans
	 	 	31	 
	SECTION 2.5. Letters of Credit
	 	 	33	 
	SECTION 2.6. Increase in the Total Commitments
	 	 	38	 
	SECTION 2.7. Extension Option
	 	 	39	 
	SECTION 2.8. Defaulting Banks
	 	 	40	 
	 
	 	 	 	 
	ARTICLE III PROVISIONS RELATING TO ALL LOANS
	 	 	42	 
	SECTION 3.1. Evidence of Loans
	 	 	42	 
	SECTION 3.2. Fees
	 	 	43	 
	SECTION 3.3. Interest
	 	 	43	 
	SECTION 3.4. Reserve Requirements
	 	 	44	 
	SECTION 3.5. Interest Rate Determination and Protection
	 	 	45	 
	SECTION 3.6. Voluntary Interest Conversion or Continuation of Revolving Loans
	 	 	45	 
	SECTION 3.7. Funding Losses Relating to Eurodollar Rate Loans(a)
	 	 	46	 
	SECTION 3.8. Change in Legality
	 	 	47	 
	 
	 	 	 	 
	ARTICLE IV INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS
	 	 	47	 
	SECTION 4.1. Increased Costs; Capital Adequacy
	 	 	47	 
	SECTION 4.2. Pro Rata Treatment and Payments and Computations
	 	 	49	 
	SECTION 4.3. Taxes
	 	 	50	 
	SECTION 4.4. Sharing of Payments, Etc
	 	 	53	 
	SECTION 4.5. Optional Termination or Reduction of the Commitments
	 	 	54	 
	SECTION 4.6. Voluntary Prepayments
	 	 	55	 
	SECTION 4.7. Mitigation of Losses and Costs; Replacement of Banks
	 	 	55	 
	SECTION 4.8. Determination and Notice of Additional Costs and Other Amounts
	 	 	56	 
	 
	 	 	 	 
	ARTICLE V CONDITIONS OF LENDING
	 	 	57	 
	SECTION 5.1. Closing Date
	 	 	57	 
	SECTION 5.2. Conditions Precedent to Each Credit Event
	 	 	58	 
	SECTION 5.3. Conditions Precedent to Each Increase or Extension of the Commitments
	 	 	59	 

i

 

	 	 	 	 	 

	ARTICLE VI REPRESENTATIONS AND WARRANTIES
	 	 	59	 
	SECTION 6.1. Representations and Warranties of the Borrower
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VII AFFIRMATIVE AND NEGATIVE COVENANTS
	 	 	63	 
	SECTION 7.1. Affirmative Covenants
	 	 	63	 
	SECTION 7.2. Negative Covenants
	 	 	66	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	71	 
	SECTION 8.1. Events of Default
	 	 	71	 
	SECTION 8.2. Cancellation/Acceleration
	 	 	73	 
	 
	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	75	 
	SECTION 9.1. Appointment
	 	 	75	 
	SECTION 9.2. Delegation of Duties
	 	 	75	 
	SECTION 9.3. Exculpatory Provisions
	 	 	75	 
	SECTION 9.4. Reliance by Administrative Agent
	 	 	76	 
	SECTION 9.5. Notice of Default
	 	 	76	 
	SECTION 9.6. Non-Reliance on Administrative Agent, Lead Arrangers and Other Banks
	 	 	76	 
	SECTION 9.7. Indemnification
	 	 	77	 
	SECTION 9.8. Agent in Its Individual Capacity
	 	 	77	 
	SECTION 9.9. Successor Administrative Agent
	 	 	77	 
	SECTION 9.10. Co-Syndication Agents, Co-Documentation Agents, Lead Arrangers and Global
Coordinators
	 	 	78	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	78	 
	SECTION 10.1. Amendments and Waivers
	 	 	78	 
	SECTION 10.2. Notices
	 	 	79	 
	SECTION 10.3. No Waiver; Cumulative Remedies
	 	 	81	 
	SECTION 10.4. Survival of Representations and Warranties
	 	 	81	 
	SECTION 10.5. Payment of Expenses; Indemnity
	 	 	81	 
	SECTION 10.6. Effectiveness, Successors and Assigns; Participations; Assignments
	 	 	83	 
	SECTION 10.7. Setoff
	 	 	86	 
	SECTION 10.8. Counterparts
	 	 	86	 
	SECTION 10.9. Severability
	 	 	86	 
	SECTION 10.10. Integration
	 	 	86	 
	SECTION 10.11. GOVERNING LAW
	 	 	86	 
	SECTION 10.12. Submission to Jurisdiction; Waivers
	 	 	87	 
	SECTION 10.13. Acknowledgments
	 	 	87	 
	SECTION 10.14. Limitation on Agreements
	 	 	87	 
	SECTION 10.15. Removal of Bank
	 	 	88	 
	SECTION 10.16. Confidentiality
	 	 	89	 
	SECTION 10.17. Officer’s Certificates
	 	 	90	 
	SECTION 10.18. USA Patriot Act
	 	 	90	 
	SECTION 10.19. No Advisory or Fiduciary Responsibility
	 	 	90	 

ii

 

	 	 	 	 	 
	Schedules	 	 	 	 
	Schedule 1.1(A)

	 	—
	 	Schedule of Commitments and Addresses
	Schedule 1.1(B)

	 	—
	 	Existing Letters of Credit
	Schedule 6.1(p)

	 	—
	 	Ownership of Capital Stock of Subsidiaries; Significant Subsidiaries

	 	 	 	 	 
	Exhibits	 	 	 	 
	Exhibit A

	 	—
	 	Form of Notice of Borrowing
	Exhibit B

	 	—
	 	Form of Notice of Interest Conversion/Continuation
	Exhibit C

	 	—
	 	Form of Assignment and Acceptance
	Exhibit D-1

	 	—
	 	Form of Revolving Loan Note
	Exhibit D-2

	 	—
	 	Form of Swingline Loan Note
	Exhibit E

	 	—
	 	Form of Commitment Increase Notice
	Exhibit F-1

	 	—
	 	Form of Letter of Credit Application of
JPMorgan Chase Bank, N.A.
	Exhibit F-2

	 	—
	 	Form of Letter of Credit Application of Bank of America, N.A.
	Exhibit G

	 	—
	 	Form of Exemption Certificate

iii

 

          This CREDIT AGREEMENT (this “Agreement”), dated as of September 9, 2011, among
CENTERPOINT ENERGY, INC., a Texas corporation (the “Borrower”), the banks and other
financial institutions from time to time parties hereto (individually, a “Bank” and,
collectively, the “Banks”), BANK OF AMERICA, N.A. and THE ROYAL BANK OF SCOTLAND PLC, as
co-syndication agents (in such capacities, the “Co-Syndication Agents”), BARCLAYS BANK PLC,
CITIBANK, N.A., DEUTSCHE BANK SECURITIES INC. and WELLS FARGO BANK, NATIONAL ASSOCIATION, as
co-documentation agents (in such capacities, the “Co-Documentation Agents”), and JPMORGAN
CHASE BANK, N.A., as administrative agent (in such capacity, together with any successors thereto
in such capacity, the “Administrative Agent”).

          The parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.1. Certain Defined TermsAs used in this Agreement, the following terms shall
have the following meanings:

     “ABR Loan” means any Loan that bears interest at a rate determined by reference
to the Alternate Base Rate.

     “ABR Revolving Loan” means a Revolving Loan that is an ABR Loan.

     “Administrative Agent” has the meaning specified in the introduction to this
Agreement.

     “Affiliate” means any Person that, directly or indirectly, Controls or is
Controlled by or is under common Control with another Person.

     “Agents” means the collective reference to the Co-Syndication Agents, the
Co-Documentation Agents and the Administrative Agent.

     “Agreement” has the meaning specified in the introduction to this Agreement.

     “Alternate Base Rate” means, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to the greatest of (a) the Prime Rate in effect on
such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c)
the Eurodollar Rate for a one-month Interest Period for such day (or if such day is not a
Business Day, the immediately preceding Business Day) plus 1%; provided that, for
purposes of this definition, the Eurodollar Rate for any day shall be based on the rate
appearing on Page LIBOR01 of the Reuters screen (or on any successor or substitute page of
such service, or any successor or substitute for such service, providing rate quotations
comparable to those currently provided on such page of such service, as determined by the
Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank
market) at approximately 11:00 A.M., London time, on such day. Any change in the Alternate

 

 

Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the
Eurodollar Rate shall be effective as of the opening of business on the effective date of
such change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar Rate,
respectively.

     “Applicable Rate” means, for any day, with respect to any Eurodollar Rate Loan
or ABR Loan, or with respect to the Commitment Fees payable hereunder, as they case may be,
the applicable rate per annum set forth below under the caption “Eurodollar Rate Margin”,
“ABR Margin” or “Commitment Fee Rate”, as the case may be, based upon the Designated Ratings
by S&P, Moody’s and Fitch, respectively, applicable on such day:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Designated	 	Eurodollar Rate	 	 	 	 
	Rating	 	Margin	 	ABR Margin	 	Commitment Fee Rate
	Higher than 

BBB+/Baa1/BBB+

	 	 	1.125	%	 	 	0.125	%	 	 	0.125	%
	BBB+/Baa1/BBB+

	 	 	1.25	%	 	 	0.25	%	 	 	0.175	%
	BBB/Baa2/BBB

	 	 	1.50	%	 	 	0.50	%	 	 	0.225	%
	BBB-/Baa3/BBB-

	 	 	1.75	%	 	 	0.75	%	 	 	0.275	%
	BB+/Ba1/BB+

	 	 	2.00	%	 	 	1.00	%	 	 	0.375	%
	Lower than 

BB+/Ba1/BB+

	 	 	2.25	%	 	 	1.25	%	 	 	0.50	%

     For purposes of the foregoing, (a) if the Designated Ratings are split and all
three Designated Ratings fall in different levels, the Applicable Rate shall be based upon
the middle Designated Rating; (b) if the Designated Ratings are split and two of the
Designated Ratings fall in the same level (the “Majority Level”) and the third
Designated Rating is in a different level, the Applicable Rate shall be based upon the
Majority Level; (c) if only two of the Rating Agencies issue a Designated Rating, the
Applicable Rate shall be based upon the higher of such Designated Ratings, provided
that if the higher Designated Rating is two or more levels above the lower Designated
Rating, the Applicable Rate shall be based upon the rating next below the higher of the two
Designated Ratings; (d) if only one of the three Rating Agencies issues a Designated Rating,
the Applicable Rate shall be based upon such Designated Rating; and (e) if the Designated
Ratings established by any of the three Rating Agencies shall be changed (other than as a
result of a change in the rating system of such Rating Agency), such change shall be
effective as of the date on which it is first announced by the applicable Rating Agency (it
being understood that a change in outlook status (e.g., watch status, negative outlook
status) does not constitute a change in any Designated Rating for purposes hereof). If the
rating system of any Rating Agency shall change, or if any Rating Agency shall cease to be
in the business of rating corporate debt obligations, the Borrower and the Administrative
Agent shall negotiate in good faith if necessary to amend this definition and the
definitions of “Designated Rating” and “Rating Agencies”
to reflect such changed rating system or the unavailability of Designated Ratings from
such Rating Agency and, pending the effectiveness of any such amendment, the

2

 

Applicable Rate
shall be determined by reference to the Designated Rating of such Rating Agency most
recently in effect prior to such change or cessation.

     “Applicable Storm” means any hurricane, tropical storm, ice or snow storm,
flood or other weather-related event or natural disaster subject to the Texas Recovery Law.

     “Application” means an application, substantially in the form attached as
Exhibit F-1 or Exhibit F-2, as applicable, requesting such Issuing Bank to
issue a Letter of Credit.

     “Assignment and Acceptance” has the meaning specified in Section 10.6(c).

     “Available Commitment” means, as to any Bank at any time, an amount equal to
the excess, if any, of (a) such Bank’s Commitment then in effect over (b) such
Bank’s Outstanding Extensions of Credit then outstanding; provided, that in
calculating any Bank’s Outstanding Extensions of Credit for the purpose of determining such
Bank’s Available Commitment pursuant to Section 3.2, the aggregate principal amount of
Swingline Loans then outstanding shall be deemed to be zero.

     “Bank” and “Banks” have the meanings specified in the introduction to
this Agreement. Unless the context otherwise requires, the term “Banks” includes the
Swingline Lender.

     “Bank Affiliate” means, (a) with respect to any Bank, (i) an Affiliate of such
Bank that is a bank or (ii) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise investing in bank
loans and similar extensions of credit in the ordinary course of its business and is
administered or managed by a Bank or an Affiliate of such Bank and (b) with respect to any
Bank that is a fund which invests in bank loans and similar extensions of credit, any other
fund that invests in bank loans and similar extensions of credit and is managed by such
Bank, an Affiliate of such Bank or the same investment advisor as such Bank or by an
Affiliate of such investment advisor.

     “Bankruptcy Event” means, with respect to any Person, such Person becomes the
subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee, administrator, custodian, assignee for the benefit of creditors or similar Person
charged with the reorganization or liquidation of its business appointed for it, or, in the
good faith determination of the Administrative Agent, has taken any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or
appointment; provided that a Bankruptcy Event shall not result solely by virtue of
any ownership interest, or the acquisition of any ownership interest, in such Person by a
Governmental Authority or instrumentality thereof, so long as such ownership interest does
not result in or provide such Person with immunity from the jurisdiction of courts within
the United States or from the enforcement of judgments or writs of attachment on its assets
or permit such Person (or such Governmental Authority or instrumentality) to reject,
repudiate, disavow or disaffirm any contracts or agreements made by such Person.

3

 

     “Board” means the Board of Governors of the Federal Reserve System of the
United States (or any successor thereto).

     “Borrowed Money” of any Person means any Indebtedness of such Person for or in
respect of money borrowed or raised by whatever means (including acceptances, deposits,
lease obligations under Capital Leases, Mandatory Payment Preferred Stock and synthetic
leases); provided, however, that Borrowed Money shall not include (a) any
guarantees that may be incurred by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business or similar transactions, (b) any obligations
or guarantees of performance of obligations under a franchise, performance bonds, franchise
bonds, obligations to reimburse drawings under letters of credit issued in accordance with
the terms of any safe harbor lease or franchise or in lieu of performance or franchise bonds
or other obligations that do not represent money borrowed or raised, in each case to the
extent that such reimbursement obligations are payable in full within ten (10) Business Days
after the date upon which such obligation arises, (c) trade payables, (d) any obligations of
such Person under Swap Agreements, (e) customer advance payments and deposits arising in the
ordinary course of business and (f) operating leases.

     “Borrower” has the meaning specified in the introduction to this Agreement.

     “Borrowing” means a borrowing consisting of (a) Revolving Loans of the same
Type, and having, in the case of Eurodollar Rate Loans, the same Interest Period, made on
the same day by the Banks or (b) Swingline Loans of the same Type.

     “Borrowing Date” means any Business Day specified by the Borrower as a date on
which the Borrower requests the Banks to make Loans hereunder.

     “Business Day” means a day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to close;
provided that when used in connection with a Eurodollar Rate Loan, the term
“Business Day” shall also exclude any day on which commercial banks are not open for
dealings in Dollar deposits in the London interbank Eurodollar market.

     “Capital Lease” means a lease that, in accordance with GAAP, would be recorded
as a capital lease on the balance sheet of the lessee.

     “Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, and any and all
equivalent ownership interests in a Person other than a corporation, including partnership
interests in partnerships and member interests in limited liability companies, and any and
all warrants or options to purchase any of the foregoing (other than any debt security which
by its terms is convertible at the option of the holder into Capital Stock, to the extent
such holder has not so converted such debt security).

     “CEHE” means CenterPoint Energy Houston Electric, LLC, a Texas limited
liability company, and a Wholly-Owned Subsidiary of the Borrower.

4

 

     “CEHE Credit Agreement” means the $300,000,000 Credit Agreement, dated as of
the date hereof, among CEHE, as borrower, JPMorgan Chase Bank, N.A., as administrative
agent, and the other financial institutions and agents parties thereto, as amended, amended
and restated, modified or supplemented from time to time.

     “CERC” means CenterPoint Energy Resources Corp., a Delaware corporation, and a
Wholly-Owned Subsidiary of the Borrower.

     “CERC Credit Agreement” means the $950,000,000 Credit Agreement, dated as of
the date hereof, among CERC, as borrower, Citibank, N.A. (or an affiliate thereof), as
administrative agent, and the other financial institutions and agents parties thereto, as
amended, amended and restated, modified or supplemented from time to time.

     “Change in Control” means, with respect to the Borrower, the acquisition by any
Person or “group” (within the meaning of Rule 13d-5 of the Exchange Act) of beneficial
ownership (determined in accordance with Rule 13d-3 of the Exchange Act) of Capital Stock of
the Borrower, the result of which is that such Person or group beneficially owns 50% or more
of the aggregate voting power of all then issued and outstanding Capital Stock of the
Borrower (other than such Capital Stock having voting power only by reason of the happening
of a contingency which contingency has not yet occurred). For purposes of the foregoing,
the phrase “voting power” means, with respect to an issuer, the power under ordinary
circumstances to vote for the election of members of the board of directors of such issuer.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

     “Closing Date” means the date on which the conditions set forth in Section 5.1
are satisfied (or waived) in accordance with the terms hereof.

     “Co-Documentation Agents” has the meaning specified in the introduction to this
Agreement.

     “Co-Syndication Agents” has the meaning specified in the introduction to this
Agreement.

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

     “Commitment” means, as to any Bank, the obligation of such Bank, if any, to
make Revolving Loans and participate in L/C Obligations and Swingline Loans in an aggregate
principal and/or face amount not to exceed the amount set forth under the heading
“Commitment” opposite such Bank’s name on Schedule 1.1(A) and/or in the Assignment
and Acceptance pursuant to which such Bank became a party hereto, as the same may be changed
from time to time pursuant to the terms hereof, including the terms of Section 2.6 and
Section 4.5.

5

 

     “Commitment Fee” has the meaning specified in Section 3.2(a).

     “Commitment Increase” has the meaning specified in Section 2.6(a).

     “Commitment Increase Agreement” means a Commitment Increase Agreement in form
and substance reasonably satisfactory to the Administrative Agent and the Borrower, which is
entered into by and among the Borrower, the Administrative Agent, the Issuing Banks and one
or more New Banks and/or Increasing Banks in order to provide for a Commitment Increase.

     “Commonly Controlled Entity” means an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001 of ERISA or is
part of a group that includes the Borrower and that is treated as a single employer under
Section 414 of the Code.

     “Communications” has the meaning specified in Section 10.2(b).

     “Consolidated Adjusted EBITDA” means, for any period, the sum of (a)
Consolidated EBITDA of the Borrower for such period plus (b) from and after the
Financial Covenant Election Effective Date, the portion of Consolidated EBITDA of all MLP
Unrestricted Subsidiaries and Joint Venture Entities (to the extent such MLP Subsidiaries
and Joint Venture Entities are accounted for pursuant to the equity method of accounting)
attributable to the Borrower’s direct or indirect interests in such MLP Unrestricted
Subsidiaries and Joint Venture Entities, minus (c) from and after the Financial
Covenant Election Effective Date, to the extent included in the calculation of Consolidated
EBITDA of the Borrower for such period, the portion of the income of any MLP Unrestricted
Subsidiary or Joint Venture Entity actually received by the Borrower or any of its
Consolidated Subsidiaries during such period in the form of dividends or similar
distributions.

     “Consolidated EBITDA” means, with respect to any Person for any period,
Consolidated Net Income of such Person for such period plus, without duplication and
to the extent reflected as a charge in the statement of such Consolidated Net Income for
such period, the sum of (a) income tax expense, (b) interest expense, distributions on
Hybrid Equity Securities (to the extent not included in interest expense and to the extent
deducted to arrive at such Consolidated Net Income), amortization or writeoff of debt
discount and debt issuance costs and commissions, discounts and other fees and charges
associated with Indebtedness (including the Loans) of such Person and its Consolidated
Subsidiaries (other than a Project Financing Subsidiary) and amortization of settlement
payments previously made on forward-starting Swap Agreements, (c) depreciation and
amortization expense, (d) amortization of intangibles (including, but not limited to,
goodwill) and organization costs, (e) any extraordinary, unusual or non-recurring expenses
or losses (including, whether or not otherwise includable as a separate item in the
statement of such Consolidated Net Income for such period, losses on sales of assets outside
of the ordinary course of business or losses on the extinguishment of the ZENS), and (f) any
other non-cash charges, and minus, to the extent included as income in the statement
of such Consolidated Net Income for such period, the sum of (a) interest

6

 

income, (b) any extraordinary, unusual or non-recurring income or gains (including,
whether or not otherwise includable as a separate item in the statement of such Consolidated
Net Income for such period, gains on the sales of assets outside of the ordinary course of
business or gains on the extinguishment of the ZENS), (c) any other non-cash income, (d)
Transition Charges Principal and Interest, and (e) the aggregate pre-tax principal amount of
CTC Recoveries, all as determined on a consolidated basis. For purposes of this definition,
(a) any results of operations classified as “discontinued operations” in accordance with
GAAP will be included in the manner set forth above and (b) Consolidated Net Income and the
additions and subtractions set forth above shall not include such amounts in respect of any
Project Financing Subsidiaries.

     “Consolidated Indebtedness” means, as of any date of determination, the sum of:

     (i) the total Indebtedness for Borrowed Money of the Borrower and its
Consolidated Subsidiaries as shown on the consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries, determined without duplication of any Guarantee
of Indebtedness of the Borrower by any of its Consolidated Subsidiaries or of any
Guarantee of Indebtedness of any such Consolidated Subsidiary by the Borrower or any
other Consolidated Subsidiary of the Borrower, plus

     (ii) any Mandatory Payment Preferred Stock, less

     (iii) the amount of Indebtedness described in clause (i) attributable to
amounts then outstanding under receivables facilities or arrangements to the extent
that such amounts would not have been shown as Indebtedness on a balance sheet
prepared in accordance with GAAP prior to January 1, 1997, less

     (iv) the aggregate amount of liabilities constituting Indebtedness for Borrowed
Money in respect of any Indexed Debt Security as shown on the consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries, less

     (v) the amount of CTC Recoveries of the Borrower and its Consolidated
Subsidiaries approved by the PUC, less

     (vi) Non-Recourse Debt;

provided that, from and after the Financial Covenant Election Effective Date,
Consolidated Indebtedness shall include a portion of the Indebtedness (as described in
clauses (i) through (vi) above, but excluding any such Indebtedness owing to the Borrower or
any of its Consolidated Subsidiaries) of the MLP Unrestricted Subsidiaries and Joint Venture
Entities that corresponds to the Borrower’s direct or indirect ownership interest in such
Unrestricted Subsidiaries and Joint Venture Entities.

     “Consolidated Net Income” means, with respect to any Person for any period, the
consolidated net income (or loss) of such Person and its Consolidated Subsidiaries (other
than a Project Financing Subsidiary), determined on a consolidated basis in accordance with
GAAP; provided that there shall be excluded (a) the income (or deficit) of any

7

 

Person accrued prior to the date it becomes a Consolidated Subsidiary of such Person or
is merged into or consolidated with such Person or any of its Consolidated Subsidiaries and
(b) the income (or deficit) of any Person (other than a Consolidated Subsidiary of such
Person) in which such Person or any of its Consolidated Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by such Person or
such Consolidated Subsidiary in the form of dividends or similar distributions.

     “Consolidated Subsidiary” means, with respect to a specified Person at any
date, any Subsidiary or any other Person (other than, with respect to the Borrower, any
Securitization Subsidiary or any Unrestricted Subsidiary), the accounts of which under GAAP
would be consolidated with those of such specified Person in its consolidated financial
statements as of such date.

     “Contractual Obligation” means, as to any Person, any provision of any security
issued by such Person or of any written agreement, instrument or other written undertaking
to which such Person is a party or by which it or any of its property is bound.

     “Controlled” means, with respect to any Person, the ability of another Person
(whether directly or indirectly and whether by the ownership of voting securities, contract
or otherwise) to appoint and/or remove the majority of the members of the board of directors
or other governing body of that Person (and “Control” shall be similarly construed).

     “Credit Party” means the Administrative Agent, any Issuing Bank, the Swingline
Lender or any other Bank.

     “CTC Recoveries” means the principal balance remaining to be collected from
retail electric providers in respect of stranded costs and certain power market price and
fuel cost recovery true-ups.

     “Declining Bank” has the meaning specified in Section 2.7.

     “Default” means any event or condition that, with the lapse of time or the
giving of notice or both, would constitute an Event of Default.

     “Default Rate” means, with respect to any overdue amount owed hereunder, a rate
per annum equal to (a) in the case of overdue principal with respect to any Loan, the sum of
the interest rate in effect at such time with respect to such Loan under Section 3.3, plus
2%; provided that in the case of overdue principal with respect to any Eurodollar
Rate Loan, after the end of the Interest Period with respect to such Loan, the Default Rate
shall equal the rate set forth in clause (c) below, (b) in the case of overdue principal
with respect to any Reimbursement Obligations, the sum of the interest rate per annum in
effect at such time with respect to ABR Loans under Section 3.3, plus 2%, and (c) in the
case of overdue interest with respect to any Loan, Commitment Fees or other amounts payable
hereunder, the sum of the interest rate per annum in effect at such time with respect to ABR
Loans, plus 2%.

8

 

     “Defaulting Bank” means any Bank that (a) has failed, within two Business Days
of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund
any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay over
to any Credit Party any other amount required to be paid by it hereunder, unless, in the
case of clause (i) above, such Bank notifies the Administrative Agent in writing that such
failure is the result of such Bank’s good faith determination that a condition precedent to
funding (specifically identified and including the particular default, if any) has not been
satisfied, (b) has notified the Borrower or any Credit Party in writing, or has made a
public statement to the effect, that it does not intend or expect to comply with any of its
funding obligations under this Agreement (unless such writing or public statement indicates
that such position is based on such Bank’s good faith determination that a condition
precedent (specifically identified and including the particular default, if any) to funding
a Loan under this Agreement cannot be satisfied) or generally under other agreements in
which it commits to extend credit, (c) has failed, within three Business Days after request
by the Administrative Agent, the Borrower, any Issuing Bank or the Swingline Lender, acting
in good faith, to provide a certification in writing from an authorized officer of such Bank
that it will comply with its obligations to fund prospective Loans and participations in
then outstanding Letters of Credit and Swingline Loans under this Agreement, provided that
such Bank shall cease to be a Defaulting Bank pursuant to this clause (c) upon the
Administrative Agent’s, the Borrower’s, such Issuing Bank’s or the Swingline Lender’s
receipt of such certification in form and substance reasonably satisfactory to it and the
Administrative Agent, or (d) has become the subject of a Bankruptcy Event.

     “Designated Rating” means (a) in the case of S&P, the Borrower’s corporate
credit rating or its equivalent (or if such rating is discontinued or unavailable, the
Borrower’s senior unsecured long-term debt rating) issued by S&P, (b) in the case of
Moody’s, the Borrower’s long-term issuer rating or its equivalent (or if such rating is
discontinued or unavailable, the Borrower’s senior unsecured long-term debt rating) issued
by Moody’s and (c) in the case of Fitch, the Borrower’s issuer default rating or its
equivalent (or if such rating is discontinued or unavailable, the Borrower’s senior
unsecured long-term debt rating) issued by Fitch.

     “Dollars” and the symbol “$” mean the lawful currency of the United
States.

     “Early Funding ABR Loan” has the meaning specified in Section 2.2(a).

     “Effective Applicable Storm” means any Applicable Storm as to which a Storm
Certificate has been received by the Administrative Agent and as to which an Other Covenant
Trigger Date has not occurred.

     “Eligible Assignee” means (i) a Bank; (ii) an Affiliate of a Bank; and (iii)
any other financial institution that is a “qualified purchaser” as defined under the
Investment Company Act of 1940, as amended, and is approved by the Administrative Agent,
each Issuing Bank and, unless an Event of Default has occurred and is continuing at the time
any assignment is effected in accordance with Section 10.6, the Borrower, such approval not
to be unreasonably withheld.

9

 

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

     “Eurodollar Rate” means, with respect to each day during each Interest Period
pertaining to a Eurodollar Rate Loan, the rate per annum appearing on Page LIBOR01 of the
Reuters screen (or on any successor or substitute page of such service, or any successor or
substitute for such service, providing rate quotations comparable to those currently
provided on such page of such service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available
at such time for any reason, then the “Eurodollar Rate” for such Interest Period
shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the Administrative Agent
in immediately available funds in the London interbank market at approximately 11:00 A.M.,
London time, two Business Days prior to the beginning of such Interest Period.

     “Eurodollar Rate Loan” means any Loan that bears interest at a rate determined
by reference to the Eurodollar Rate.

     “Event of Default” has the meaning specified in Section 8.1.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excluded Taxes” has the meaning specified in Section 4.3(a).

     “Existing Credit Agreement” means the $1,200,000,000 Second Amended and
Restated Credit Agreement, dated as of June 29, 2007, among the Borrower, the Administrative
Agent and other financial institutions parties thereto, as heretofore amended, amended and
restated, modified or supplemented.

     “Existing Issuing Bank” means JPMorgan Chase Bank, N.A., in its capacity as the
issuer of the Existing Letters of Credit.

     “Existing Letters of Credit” means the letters of credit issued under the
Existing Credit Agreement described on Schedule 1.1(B).

     “Extended Maturity Date” has the meaning specified in Section 2.7.

     “Extending Bank” has the meaning specified in Section 2.7.

     “Facility” means the Commitments and the extensions of credit made thereunder.

     “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this
Agreement (or any amended or successor version that is substantively comparable and

10

 

not materially more onerous to comply with) and any regulations or official
interpretations thereof.

     “Federal Funds Effective Rate” means, for any day, a fluctuating rate per annum
equal to the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is
not so published for any day that is a Business Day, the average of the quotations for such
day for such transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by the Borrower.

     “Financial Covenant Election Effective Date” means the first day of the fiscal
quarter in which the Financial Covenant Election Notice is delivered to the Administrative
Agent.

     “Financial Covenant Election Notice” means a single election by the Borrower
pursuant to a written notice delivered to the Administrative Agent, on or prior to the date
of consummation of the first Permitted MLP/JV Asset Transfer to be made after the Closing
Date involving the contribution, disposition or other transfer of assets with an aggregate
value in excess of $100,000,000, to have (i) the calculation of Consolidated Adjusted EBITDA
include a portion of the Consolidated EBITDA of the MLP Unrestricted Subsidiaries and JV
Entities and (ii) the calculation of Consolidated Indebtedness include a portion of certain
Indebtedness of the MLP Unrestricted Subsidiaries and JV Entities, in each case in the
manner described in the definitions thereof.

     “Fitch” means Fitch Ratings and any successor rating agency.

     “Funding Office” means the office of the Administrative Agent specified in
Section 10.2(a) or such other office as may be specified from time to time by the
Administrative Agent as its funding office by written notice to the Borrower and the Banks.

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

     “General Mortgage Indenture” means the General Mortgage Indenture, dated as of
October 10, 2002, between CEHE and The Bank of New York Trust Company, N.A. (as successor to
JPMorgan Chase Bank, N.A.), as trustee, as amended, modified or supplemented from time to
time.

     “Global Coordinators” means J.P. Morgan Securities LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated and RBS Securities Inc., in their capacities as global
coordinators.

     “Governmental Authority” means any nation or government, any state or other
political subdivision thereof, and any agency, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative, judicial, taxing,

11

 

regulatory or administrative functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).

     “Guarantee” means, as to any Person (the “guaranteeing person”), any
obligation of (a) the guaranteeing Person or (b) another Person (including any bank under
any letter of credit) with respect to which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in
effect guaranteeing any principal of any Indebtedness for Borrowed Money (the “primary
obligation”) of any other third Person in any manner, whether directly or indirectly,
including any obligation of the guaranteeing Person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or indirect
security therefor, (ii) to advance or supply funds for the purchase or payment of any such
primary obligation or (iii) otherwise to assure or hold harmless the owner of any such
primary obligation against loss in respect thereof. The amount of any Guarantee of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such Guarantee is made and
(b) the maximum amount for which such guaranteeing person may be liable pursuant to the
terms of the instrument embodying such Guarantee, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated or
determinable, in which case the amount of such Guarantee shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by the Borrower in
good faith (and “guaranteed” and “guarantor” shall be construed accordingly).

     “Highest Lawful Rate” means, with respect to each Bank, the maximum nonusurious
interest rate, if any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received with respect to any Loan or on other amounts, if any, due to
such Bank pursuant to this Agreement or any other Loan Document under applicable law.
“Applicable law” as used in this definition means, with respect to each Bank, that law in
effect from time to time that permits the charging and collection by such Bank of the
highest permissible lawful, nonusurious rate of interest on the transactions herein
contemplated including the laws of each State that may be held to be applicable, and of the
United States, if applicable.

     “Hybrid Equity Securities” means, on any date (the “determination date”), any
securities issued by the Borrower or a Restricted Subsidiary, other than common stock, that
meet the following criteria: (a) the Borrower demonstrates that such securities are
classified, at the time they are issued, as possessing a minimum of “intermediate equity
content” by S&P and “Basket C equity credit” by Moody’s (or the equivalent classifications
then in effect by such agencies) and (b) such securities require no repayments or
prepayments and no mandatory redemptions or repurchases, in each case, prior to at least 91
days after the later of the termination of the Commitments and the repayment in full of the
Obligations. As used in this definition, “mandatory redemption” shall not include
conversion of a security into common stock.

     “Increase Date” has the meaning specified in Section 2.6(a).

12

 

     “Increasing Bank” has the meaning specified in Section 2.6(a).

     “Indebtedness” of any Person means the sum, without duplication, of (a) all
items (other than Capital Stock, capital surplus, retained earnings, other comprehensive
income, treasury stock and any other items that would properly be included in shareholder
equity) that, in accordance with GAAP consistently applied, would be included in determining
total liabilities as shown on the liability side of a balance sheet of such Person as at the
date on which the Indebtedness is to be determined, (b) all obligations of such Person,
contingent or otherwise, as account party or applicant (or equivalent status) in respect of
any standby letters of credit or equivalent instruments, and (c) without duplication, the
amount of Guarantees by such Person of items described in clauses (a) and (b);
provided, however, that Indebtedness of a Person shall not include (i) any
Junior Subordinated Debt owned by any issuer of Hybrid Equity Securities, (ii) any Guarantee
by the Borrower or its Subsidiaries of payments with respect to any Hybrid Equity
Securities, (iii) any Securitization Securities or (iv) any Hybrid Equity Securities.

     “Indemnified Taxes” has the meaning specified in Section 4.3(a).

     “Indexed Asset” means, with respect to any Indexed Debt Security, (i) any
security or commodity that is deliverable upon maturity of such Indexed Debt Security to
satisfy the obligations under such Indexed Debt Security at maturity or (ii) any security,
commodity or index relating to one or more securities or commodities used to determine or
measure the obligations under such Indexed Debt Security at maturity thereof.

     “Indexed Debt Securities” means (a) the ZENS and (b) any other security issued
by the Borrower or any Consolidated Subsidiary of the Borrower that (i) (x) in accordance
with GAAP, is shown on the consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as Indebtedness or a liability and (y) the obligations at maturity of which may
under certain circumstances be satisfied completely by the delivery of, or the amount of
such obligations are determined by reference to, (1) one or more equity securities owned by
the Borrower or any of its Consolidated Subsidiaries which is issued by one or more issuers
other than the Borrower or any such Consolidated Subsidiary or (2) an underlying commodity
or security owned by the Borrower or any of its Consolidated Subsidiaries, (ii) with respect
to which the Borrower or any Consolidated Subsidiary of the Borrower either (x) owns or has
in effect rights providing substantially the economic effect, in such context, of owning, a
sufficient amount of the Indexed Asset relating thereto to satisfy completely its
obligations at maturity thereof or (y) has in effect a hedging arrangement sufficient to
enable it to satisfy completely its obligations at maturity thereof and (iii) with respect
to which the liabilities have increased from the amount of liabilities in respect thereof at
the time of their issuance by reason of an increase in the price of the Indexed Asset
relating thereto, the excess of (x) the aggregate amount of liabilities in respect of such
Indexed Debt Securities at the time of determination over (y) the initial amount of
liabilities in respect of such Indexed Debt Securities at the time of their issuance,
provided that at the time of determination such increase in the price of the Indexed
Asset relating to such Indexed Debt Securities has not been recorded in such consolidated
balance sheet.

13

 

     “Insolvency” means, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of Section 4245 of ERISA (and “Insolvent” shall be
construed accordingly for such purposes).

     “Interest Period” means, for each Eurodollar Rate Loan comprising part of the
same Borrowing, the period commencing on the date of such Eurodollar Rate Loan or the date
of the conversion of any Loan into such Eurodollar Rate Loan, as the case may be, and ending
on the last day of the period selected by the Borrower pursuant to Section 2.2 or 3.6, as
the case may be, and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period selected by
the Borrower pursuant to Section 3.6. The duration of each such Interest Period shall be
two weeks or one, two, three or six months (or such other period as may be approved by the
Administrative Agent and is available to all of the Banks), as Borrower may select by notice
pursuant to Section 2.2 or 3.6 hereof, provided, however, that:

     (i) any Interest Period in respect of a Loan that would otherwise extend beyond the
Maturity Date shall end on the Maturity Date;

     (ii) whenever the last day of any Interest Period would otherwise occur on a day other
than a Business Day, the last day of such Interest Period shall be extended to occur on the
next succeeding Business Day; provided that if such extension would cause the last
day of such Interest Period to occur in the next following calendar month, the last day of
such Interest Period shall occur on the next preceding Business Day, and

     (iii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of a calendar month.

     “Investment” has the meaning specified in Section 7.2(g).

     “IRS” means the United States Internal Revenue Service.

     “Issuing Bank” means (a) each of JPMorgan Chase Bank, N.A. and Bank of America,
N.A., in its capacity as an issuer of any Letter of Credit, provided,
however, that neither JPMorgan Chase Bank, N.A. nor Bank of America, N.A. shall be
required, without the consent of such Issuing Bank, to issue Letters of Credit in excess of
$100,000,000 at any time outstanding for each such Issuing Bank, and (b) any other Bank, in
such capacity, designated to be an Issuing Bank by the Borrower that agrees to issue Letters
of Credit. Any reference to an Issuing Bank herein means the applicable institution issuing
the applicable Letter of Credit.

     “Joint Venture” means any joint venture (whether in the form of a partnership,
limited liability company, corporation or other business entity) in which the Borrower
directly or indirectly owns at least 50% of the Capital Stock.

14

 

     “Joint Venture Entity” means any Joint Venture, any Wholly-Owned Subsidiary of
a Joint Venture or any JV Subsidiary.

     “JV Subsidiary” means any Wholly-Owned Subsidiary of the Borrower that directly
holds Capital Stock of a Joint Venture.

     “Junior Subordinated Debt” means subordinated debt of the Borrower or any
Subsidiary of the Borrower (i) that is issued to an issuer of Hybrid Equity Securities in
connection with the issuance of such Hybrid Equity Securities, (ii) the payment of the
principal of which and interest on which is subordinated (with certain exceptions) to the
prior payment in full in cash or its equivalent of all senior indebtedness of the obligor
thereunder and (iii) that has an original tenor no earlier than 30 years from the issuance
thereof.

     “L/C Commitment” means the amount of $200,000,000.

     “L/C Exposure” means, with respect to any Bank at any time, such Bank’s
Revolving Percentage of the L/C Obligations at such time.

     “L/C Fee Payment Date” means (a) while the L/C Commitment remains in effect,
the last day of each March, June, September and December, commencing on September 30, 2011,
and (b) the Termination Date.

     “L/C Obligations” means, at any time, an amount equal to the sum of (a) the
aggregate undrawn and unexpired amount of all outstanding Letters of Credit at such time and
(b) the aggregate amount of drawings under Letters of Credit that have not been reimbursed
pursuant to Section 2.5 at such time.

     “L/C Participants” means the collective reference to all the Banks other than
the Issuing Bank in their respective capacities as participants in L/C Obligations.

     “Lead Arrangers” means J.P. Morgan Securities LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, RBS Securities Inc., Barclays Capital, Citigroup Global Markets
Inc., Deutsche Bank Securities Inc., and Wells Fargo Securities, LLC, in their capacities as
joint lead arrangers and joint bookrunners.

     “Letters of Credit” has the meaning assigned to such term in Section
2.5(a)(ii).

     “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, charge, security interest, encumbrance or lien of any kind whatsoever
(including any Capital Lease).

     “Loan” means a Revolving Loan or a Swingline Loan, as the context may require.

     “Loan Documents” means this Agreement and the Notes.

15

 

     “Local Distribution Company” means a company that owns and/or operates the
equipment and facilities for distributing natural gas or electric energy within a local
region and delivers it to end-user customers.

     “Majority Banks” means, at any time, subject to Section 2.8, Banks having
Commitments in excess of 50% of the Total Commitments then in effect or, if the Commitments
shall have terminated, Banks having Outstanding Extensions of Credit in excess of 50% of the
Total Outstanding Extensions of Credit then outstanding; provided that the
Commitments of any Lender that is an Affiliate of the Borrower shall be excluded for
purposes of making a determination of Majority Banks.

     “Mandatory Payment Preferred Stock” means any preference or preferred stock of
the Borrower or of any Consolidated Subsidiary (other than (x) any preference or preferred
stock issued to the Borrower or its Subsidiaries, (y) Hybrid Equity Securities, and (z)
Junior Subordinated Debt) that is subject to mandatory redemption, sinking fund or
retirement provisions (regardless of whether any portion thereof is due and payable within
one year).

     “Margin Stock” has the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” means any material adverse effect on the ability of
the Borrower to perform its obligations under the Loan Documents on a timely basis (it being
understood that Material Adverse Effect shall not include the effect of any True-Up
Litigation).

     “Maturity Date” means September 9, 2016, subject to the extension thereof with
respect to all or part of the Commitments pursuant to Section 2.7.

     “MLP” means one or more master limited partnerships formed by the Borrower or
its Wholly-Owned Subsidiaries.

     “MLP GP” means any general partner of any MLP and any general partner of the
general partner of any MLP.

     “MLP LP” means any limited partner in an MLP.

     “MLP Subsidiary” means a Wholly-Owned Subsidiary of any MLP.

     “MLP Unrestricted Subsidiary” means any MLP, MLP GP, MLP LP or MLP Subsidiary.

     “Money Market Rate” means (a) the “ASK” rate for Federal Funds appearing on
Page 5 of the Dow Jones Market Service (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Swingline Lender from time to time for purposes of providing quotations of the offer rates
applicable to Federal Funds for a term of one Business Day) at the time reviewed by the
Swingline Lender plus (b) the Applicable Rate for Eurodollar Rate Loans. In the

16

 

event that part (a) of such rate is not available at such time for any reason, then
part (a) of such rate will be the rate agreed to between the Swingline Lender and the
Borrower. The Borrower understands and agrees that the rate quoted from Page 5 of the Dow
Jones Market Service is a real-time rate that changes from time to time. The rate quoted by
the Swingline Lender and used for the purpose of setting the interest rate for a Swingline
Loan will be the rate on the screen of the Swingline Lender at the time of setting the rate
and will not be an average or composite of rates for that day.

     “Money Market Rate Loan” means a Swingline Loan, the rate of interest
applicable to which is based upon the Money Market Rate.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor rating
agency.

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

     “Net Tangible Assets” means the total assets of the Borrower, its Consolidated
Subsidiaries and the Unrestricted Subsidiaries (other than MLP Unrestricted Subsidiaries),
minus goodwill and other intangible assets as shown on the balance sheet of the
Borrower, its Consolidated Subsidiaries and the Unrestricted Subsidiaries (other than MLP
Unrestricted Subsidiaries) delivered pursuant to Section 7.1(a) in respect of the most
recently ended fiscal quarter of the Borrower.

     “New Bank” has the meaning specified in Section 2.6(a).

     “Non-Recourse Debt” means (i) any Indebtedness for Borrowed Money incurred by
any Project Financing Subsidiary to finance the acquisition, improvement, installation,
design, engineering, construction, development, completion, maintenance or operation of, or
otherwise to pay costs and expenses relating to or incurred in connection with providing
financing for, any project, which Indebtedness for Borrowed Money does not provide for
recourse against the Borrower or any Subsidiary of the Borrower (other than a Project
Financing Subsidiary and such recourse as exists under a Performance Guaranty) or any
property or asset of the Borrower or any Subsidiary of the Borrower (other than Capital
Stock of, or the property or assets of, a Project Financing Subsidiary and such recourse as
exists under a Performance Guaranty) and (ii) any refinancing of such Indebtedness for
Borrowed Money that does not increase the outstanding principal amount thereof (other than
to pay costs incurred in connection therewith and the capitalization of any interest, fees,
premium or penalties) at the time of the refinancing or increase the property subject to any
Lien securing such Indebtedness for Borrowed Money or otherwise add additional security or
support for such Indebtedness for Borrowed Money.

     “Note” means a Revolving Loan Note or a Swingline Loan Note, as the context may
require.

     “Notice Date” has the meaning specified in Section 2.7.

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     “Notice of Borrowing” has the meaning specified in Section 2.2.

     “Notice of Interest Conversion/Continuation” has the meaning specified in
Section 3.6(c).

     “Original Mortgage” means the Mortgage and Deed of Trust, dated as of November
1, 1944, by CEHE to The Bank of New York Trust Company, N.A. (as successor to South Texas
Commercial National Bank of Houston), as Trustee, as amended, modified or supplemented from
time to time.

     “Other Covenant Trigger Date” means, for any Applicable Storm as to which a
Storm Certificate has been received by the Administrative Agent, the earliest to occur of
(x) the issuance, in one or more transactions, of Securitization Securities in respect of
all Storm Restoration Cost Recoveries arising in connection with such Applicable Storm, (y)
the first anniversary of the delivery of such Storm Certificate, and (z) the revocation by
the Borrower of such Storm Certificate in accordance with Section 7.2(i).

     “Other Taxes” has the meaning specified in Section 4.3(b).

     “Outstanding Extensions of Credit” means, as to any Bank at any time, an amount
equal to the sum of (a) the aggregate principal amount of all Revolving Loans made by such
Bank then outstanding, (b) such Bank’s L/C Exposure at such time and (c) such Bank’s
Swingline Exposure at such time.

     “Parent” means, with respect to any Bank, any Person as to which such Bank is,
directly or indirectly, a subsidiary.

     “Participant” has the meaning specified in Section 10.6(b).

     “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA or any successor.

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

     “Permitted Liens” means, with respect to any Person:

     (a) Liens for current taxes, assessments or other governmental charges that are
not delinquent or remain payable without any penalty, or the validity or amount of
which is contested in good faith by appropriate proceedings, provided,

18

 

however, that adequate reserves with respect thereto are maintained on
the books of such Person in accordance with GAAP, and provided,
further, that any right to seizure, levy, attachment, sequestration,
foreclosure or garnishment with respect to Property of such Person or any Subsidiary
of such Person by reason of such Lien has not matured, or has been, and continues to
be, effectively enjoined or stayed;

     (b) landlord Liens for rent not yet due and payable and Liens for materialmen,
mechanics, warehousemen, carriers, employees, workmen, repairmen and other similar
nonconsensual Liens imposed by operation of law, for current wages or accounts
payable or other sums not yet delinquent, in each case arising in the ordinary
course of business or, if overdue, that are being contested in good faith by
appropriate proceedings, provided, however, that any right to
seizure, levy, attachment, sequestration, foreclosure or garnishment with respect to
Property of such Person or any Subsidiary of such Person by reason of such Lien has
not matured, or has been, and continues to be, effectively enjoined or stayed;

     (c) Liens (other than any Lien imposed pursuant to Section 401(a)(29) or 412(n)
of the Code, ERISA or any environmental law, order, rule or regulation) incurred or
deposits made, in each case, in the ordinary course of business, (i) in connection
with workers’ compensation, unemployment insurance and other types of social
security or (ii) to secure (or to obtain letters of credit that secure) the
performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, performance or payment bonds, purchase, construction, sales contracts and
other similar obligations, in each case not incurred or made in connection with the
borrowing of money, the obtaining of advances or the payment of the deferred
purchase price of property;

     (d) Liens arising out of or in connection with any litigation or other legal
proceeding that is being contested in good faith by appropriate proceedings;
provided, however, that adequate reserves with respect thereto are
maintained on the books of such Person in accordance with GAAP; and
provided, further, that, subject to Section 8.1(i) (so long as such
Lien is discharged or released within 60 days of attachment thereof), any right to
seizure, levy, attachment, sequestration, foreclosure or garnishment with respect to
Property of such Person or any Subsidiary of such Person by reason of such Lien has
not matured, or has been, and continues to be, effectively enjoined or stayed;

     (e) precautionary filings under the applicable Uniform Commercial Code made by
a lessor with respect to personal property leased to such Person or any Subsidiary
of such Person;

     (f) other non-material Liens or encumbrances none of which secures Indebtedness
for Borrowed Money of the Borrower or any of its Subsidiaries or interferes
materially with the use of the Property affected in the ordinary conduct

19

 

of Borrower’s or its Subsidiaries’ business and which, individually or in the
aggregate, do not have a Material Adverse Effect;

     (g) easements, rights-of-way, restrictions and other similar encumbrances and
exceptions to title existing or incurred in the ordinary course of business that, in
the aggregate, do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the business of
the Borrower and its Subsidiaries, taken as a whole;

     (h) (i) Liens created by Capital Leases, provided that the Liens
created by any such Capital Lease attach only to the Property leased to the Borrower
or one of its Subsidiaries pursuant thereto, (ii) purchase money Liens securing
Indebtedness of the Borrower or any of its Subsidiaries (including such Liens
securing such Indebtedness incurred within twelve months of the date on which such
Property was acquired), provided that all such Liens attach only to the
Property purchased with the proceeds of the Indebtedness secured thereby and only
secure the Indebtedness incurred to finance such purchase, (iii) Liens on
receivables, customer charges, notes, ownership interests, contracts or contract
rights created in connection with a sale, securitization or monetization of such
receivables, customer charges, notes, ownership interests, contracts or contract
rights, and Liens on rights of the Borrower or any Subsidiary related to such
receivables, customer charges, notes, ownership interests, contracts or contract
rights which are transferred to the purchaser of such receivables, customer charges,
notes, ownership interests, contracts or contract rights in connection with such
sale, securitization or monetization, provided that such Liens secure only
the obligations of the Borrower or any of its Subsidiaries in connection with such
sale, securitization or monetization and (iv) Liens created by leases that do not
constitute Capital Leases at the time such leases are entered into, provided
that the Liens created thereby attach only to the Property leased to the Borrower or
one of its Subsidiaries pursuant thereto;

     (i) Liens on cash and short-term investments (i) deposited by the Borrower or
any of its Subsidiaries in accounts with or on behalf of futures contract brokers or
other counterparties or (ii) pledged by the Borrower or any of its Subsidiaries, in
the case of clause (i) or (ii) to secure its obligations with respect to contracts
(including physical delivery, option (whether cash or financial), exchange, swap and
futures contracts) for the purchase or sale of any energy-related commodity or
interest rate or currency rate management contracts;

     (j) Liens on (i) Property owned by a Project Financing Subsidiary or (ii)
equity interests in a Project Financing Subsidiary (including in each case a pledge
of partnership interests, common stock or membership interests in a limited
liability company) securing Indebtedness of the Borrower or any of its Subsidiaries
incurred in connection with a Project Financing; and

     (k) Liens on equity interests in an Unrestricted Subsidiary (including in each
case a pledge of partnership interests, common stock or membership

20

 

interests in a limited liability company) securing, subject to Section 7.2(g),
Indebtedness of such Unrestricted Subsidiary.

     “Permitted MLP/JV Asset Transfer” means any contribution, disposition or other
transfer by the Borrower or any of its Subsidiaries of property or assets of, or equity
interests in, any natural gas pipeline Subsidiary or field services Subsidiary (other than
any Local Distribution Company) to any MLP, any MLP Subsidiary, any Joint Venture or any
Wholly-Owned Subsidiary of a Joint Venture, including by way of any merger or consolidation
of any natural gas pipeline Subsidiary or field services Subsidiary (other than any Local
Distribution Company) into or with any MLP, MLP Subsidiary, Joint Venture or Wholly-Owned
Subsidiary of a Joint Venture (it being understood that a series of substantially
contemporaneous transactions that results in the transfer of property or assets of, or
equity interests in, any natural gas pipeline Subsidiary or field services Subsidiary (other
than any Local Distribution Company) to any MLP, MLP Subsidiary, Joint Venture or
Wholly-Owned Subsidiary of a Joint Venture shall constitute a Permitted MLP/JV Asset
Transfer) so long as (x) such contribution, disposition or other transfer shall not have the
effect of causing the Designated Ratings to be downgraded such that, within 90 days
following the public announcement of such contribution, disposition or other transfer, the
Applicable Rate is determined based on the level corresponding to Designated Ratings of
BB+/Ba1/BB+ (as issued by S&P, Moody’s and Fitch, respectively) or lower as set forth in the
pricing grid in the definition of “Applicable Rate” (provided that, if prior to the
expiration of such 90-day period, any of S&P, Moody’s and Fitch makes a public announcement
that it is considering a possible ratings change as a result of such Permitted MLP/JV Asset
Transfer but does not downgrade the applicable Designated Rating within such 90-day period,
such 90-day period shall be extended until the earliest to occur of (I) the expiration of an
additional 30-day period, (II) the withdrawal of such public announcement or the making of
another public announcement that such Rating Agency is no longer considering a possible
ratings change as a result of such contribution, disposition or other transfer and (III) the
downgrading by such Rating Agency of the applicable Designated Rating as a result of such
contribution, disposition or other transfer) and (y) if the Borrower forms any MLP, it
shall, at all times while such MLP is in existence, Control the general partner of such MLP,
unless the Borrower ceases to Control such general partner as a result of one or more
transactions that are permitted under Section 7.2(c) (other than clause (G) thereof).

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

     “Plan” means, at a particular time with respect to the Borrower, any employee
benefit plan that is covered by ERISA and in respect of which Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under Section
4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Platform” has the meaning specified in Section 10.2(b).

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     “Prime Rate” means the rate of interest per annum publicly announced from time
to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in
New York City (the Prime Rate not being intended to be the lowest rate of interest charged
by JPMorgan Chase Bank, N.A. in connection with extensions of credit to debtors).

     “Project Financing” means any Indebtedness or lease obligations that do not
constitute Capital Leases at the time such leases are entered into, in each case that are
incurred to finance a project or group of projects (including any construction financing) to
the extent that such Indebtedness (or other obligations) expressly are not recourse to the
Borrower or any of its Restricted Subsidiaries (other than a Project Financing Subsidiary)
or any of their respective Property other than the Property of a Project Financing
Subsidiary and equity interests in a Project Financing Subsidiary (including in each case a
pledge of partnership interests, common stock or membership interests in a limited liability
company).

     “Project Financing Subsidiary” means any Restricted Subsidiary of the Borrower
(or any other Person in which Borrower directly or indirectly owns a 50% or less interest)
whose principal purpose is to incur Project Financing or to become an owner of interests in
a Person so created to conduct the business activities for which such Project Financing was
incurred, and substantially all the fixed assets of which Subsidiary or Person are those
fixed assets being financed (or to be financed) in whole or in part by one or more Project
Financings.

     “Property” means any interest or right in any kind of property or asset,
whether real, personal or mixed, owned or leased, tangible or intangible and whether now
held or hereafter acquired.

     “Public Lender” has the meaning specified in Section 10.2(b).

     “Purchasing Banks” has the meaning specified in Section 10.6(c).

     “PUC” means the Public Utility Commission of Texas.

     “Rating Agencies” means (a) S&P, (b) Moody’s and (c) Fitch.

     “Register” has the meaning specified in Section 10.6(d).

     “Regulation U” means Regulation U of the Board or any other regulation
hereafter promulgated by the Board to replace the prior Regulation U and having
substantially the same function.

     “Reimbursement Obligation” means the obligation of the Borrower to reimburse
the Issuing Bank pursuant to Section 2.5(e) for amounts drawn under Letters of Credit.

     “Reorganization” means, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of Section 4241 of ERISA.

22

 

     “Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA and PBGC Reg. § 4043, other than those events as to which the thirty-day notice period
is waived under PBGC Reg. § 4043 or other regulations, notices or rulings issued by the
PBGC.

     “Requirement of Law” means, as to any Person, any law, statute, ordinance,
decree, requirement, order, judgment, rule or regulation of any Governmental Authority.

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

     “Restricted Subsidiaries” means all Subsidiaries of the Borrower other than
Unrestricted Subsidiaries.

     “Revolving Loan” has the meaning specified in Section 2.1(a).

     “Revolving Loan Note” means a promissory note of the Borrower in favor of a
Bank evidencing the Revolving Loans made by such Bank in substantially the form of Exhibit
D-1.

     “Revolving Percentage” means, as to any Bank at any time, a fraction (expressed
as a percentage) the numerator of which is the amount of such Bank’s Commitment or, if the
Commitments shall have terminated, the Outstanding Extensions of Credit of such Bank then
outstanding, and the denominator of which is the Total Commitments then in effect or, if the
Commitments shall have terminated, the Total Outstanding Extensions of Credit then
outstanding; provided that in the case of Section 2.8 when a Defaulting Bank shall
exist, “Revolving Percentage” shall mean the percentage of the Total Commitments
(disregarding any Defaulting Bank’s Commitment) represented by such Bank’s Commitment. If
the Commitments have terminated or expired, the Revolving Percentages shall be determined
based upon the Commitments most recently in effect, giving effect to any assignments and to
any Bank’s status as a Defaulting Bank at the time of determination.

     “S&P” means Standard & Poor’s Financial Services LLC and any successor rating
agency.

     “SEC” means the Securities and Exchange Commission and any successor thereto.

     “Secured Indebtedness” means, with respect to any Person, all Indebtedness
secured (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured) by any Lien on any Property (including accounts and contract
rights) owned by such Person or any of its Subsidiaries, even though such Person has not
assumed or become liable for the payment of such Indebtedness; provided,
however, that Indebtedness of an Unrestricted Subsidiary, Joint Venture Entity or
Project Financing Subsidiary shall not be deemed to be Secured Indebtedness of the Borrower
or any

23

 

Significant Subsidiary solely as a result of being secured by Liens on Capital Stock of
such Unrestricted Subsidiary, Joint Venture Entity or Project Financing Subsidiary.

     “Securitization Securities” means (i) transition bonds issued pursuant to the
Texas Electric Choice Plan if (and only if) no recourse may be had to the Borrower or any of
its Subsidiaries (or to their respective assets) for the payment of such obligations, other
than the issuer of the bonds and its assets, provided that payment of transition
charges by any retail electric provider (“REP”) in accordance with such legislation,
whether or not such REP has collected such charges from the retail electric customers, shall
not be deemed “recourse” hereunder, including any REP that is a Subsidiary of the Borrower
or a division of an Affiliate of the Borrower or any Affiliate of the Borrower, and (ii)
bonds issued to securitize the regulatory assets and related rights of the Borrower or any
of its Subsidiaries arising in connection with the recovery of the costs of restoration,
repair and related matters following Hurricane Ike or any Effective Applicable Storm if (and
only if) recourse for the payment of debt service of such bonds is limited to such
regulatory assets and related rights; it being understood that obligations of the “servicer”
in the form of standard servicer undertakings shall not constitute “recourse”.

     “Securitization Subsidiary” means a special purpose subsidiary created to issue
Securitization Securities.

     “Significant Subsidiary” means (i) for the purposes of determining what
constitutes an “Event of Default” under Sections 8.1(f), (g), (h), (i) and (j), a Subsidiary
of the Borrower (other than a Project Financing Subsidiary) whose total assets, as
determined in accordance with GAAP, represent at least 10% of the total assets of the
Borrower, on a consolidated basis, as determined in accordance with GAAP and (ii) for all
other purposes the “Significant Subsidiaries” shall be those Subsidiaries of the Borrower
whose total assets, as determined in accordance with GAAP, represent at least 10% of the
total assets of the Borrower on a consolidated basis, as determined in accordance with GAAP
for the Borrower’s most recently completed fiscal year and identified in the certificate
most recently delivered pursuant to Section 7.1(a)(vi); provided that no
Securitization Subsidiary or Unrestricted Subsidiary shall be deemed to be a Significant
Subsidiary or subject to the restrictions, covenants or Events of Default under this
Agreement.

     “Single Employer Plan” means any Plan that is covered by Title IV of ERISA, but
that is not a Multiemployer Plan.

     “Storm Certificate” means, as to any Applicable Storm, a certificate executed
by a Responsible Officer of the Borrower certifying that:

     (i) such Responsible Officer reasonably believes that an Applicable Storm has
occurred and providing the date of such occurrence and reasonable detail of such
Applicable Storm;

     (ii) such Responsible Officer reasonably believes that the system restoration
costs (as defined in the Texas Recovery Law) incurred by the

24

 

Borrower and its Subsidiaries in connection with such Applicable Storm (before
giving effect to any insurance, government grants and other recoveries that the
Borrower and its Subsidiaries may receive in connection with such Applicable Storm)
are reasonably likely to exceed $100,000,000 in a consecutive twelve-month period;

     (iii) the Borrower intends to seek to use securitization financing provided for
in the Texas Recovery Law to recover all or a part of such system restoration costs
relating to such Applicable Storm;

     (iv) after giving effect to the delivery of such Storm Certificate, the
representations and warranties of the Borrower contained in Section 6.1 of the
Credit Agreement and in the other Loan Documents are true and correct in all
material respects on and as of the date of such certificate (except for (i) those
representations or warranties or parts thereof that, by their terms, expressly
relate solely to a specific date, in which case such representations and warranties
shall be true and correct in all material respects as of such specific date and (ii)
the representations and warranties contained in Sections 6.1(j) and (k)), as though
made on and as of the date of such certificate; and

     (v) after giving effect to the delivery of such Storm Certificate, no Default
or Event of Default has occurred and is continuing.

     “Storm Certificate Effective Date” means, for any Storm Certificate, the date
of the receipt of such Storm Certificate by the Administrative Agent.

     “Storm Restoration Cost Recoveries” means the amount expected or remaining to
be collected from customers in respect of the costs and expenses incurred in the repair or
replacement of the electric transmission and/or distribution system supporting operations of
CEHE and its Consolidated Subsidiaries and related recovery arising from Hurricane Ike or
any Effective Applicable Storm, as the case may be.

     “Subsidiary” means, as to any Person, a corporation, partnership, limited
liability company or other entity of which more than 50% of the outstanding shares of
Capital Stock or other ownership interests having ordinary voting power (other than Capital
Stock or such other ownership interests having such power only by reason of the happening of
a contingency) to elect directors or other managers of such corporation, partnership or
other entity are at the time owned, directly or indirectly, through one or more Subsidiaries
of such Person, by such Person; provided, however, that no Securitization
Subsidiary shall be deemed to be a Subsidiary of the Borrower for any purposes under this
Agreement.

     “Swap Agreement” means any agreement with respect to any swap, forward, future
or derivative transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or securities, or
economic, financial or pricing indices or measures of economic, financial or pricing risk or
value or any similar transaction or any combination of these transactions;

25

 

provided that no phantom stock or similar plan providing for payments only on
account of services provided by current or former directors, officers, employees or
consultants of the Borrower or any of its Subsidiaries shall be a “Swap Agreement”.

     “Swingline Commitment” has the meaning specified in Section 2.4(a).

     “Swingline Exposure” means, with respect to any Bank at any time, such Bank’s
Revolving Percentage of the aggregate principal amount of all Swingline Loans outstanding at
such time.

     “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender
of Swingline Loans hereunder.

     “Swingline Loan” means a Loan made pursuant to Section 2.4.

     “Swingline Loan Note” means a promissory note of the Borrower in favor of a
Bank evidencing the Swingline Loans made by such Bank in substantially the form of Exhibit
D-2.

     “Taxes” has the meaning specified in Section 4.3(a).

     “Termination Date” means the Maturity Date or any earlier date on which (a) the
Commitments have been terminated in accordance with this Agreement or (b) all unpaid
principal amounts of the Loans hereunder have been declared due and payable in accordance
with this Agreement.

     “Texas Recovery Law” means Section 36.401 et seq. of the Texas Utilities Code,
as amended from time to time.

     “Total Commitments” means, at any time, the aggregate amount of the Commitments
of all Banks then in effect. The amount of the Total Commitments as of the date hereof is
$1,200,000,000.

     “Total Outstanding Extensions of Credit” means, at any time, the aggregate
amount of the Outstanding Extensions of Credit of all Banks outstanding at such time.

     “Tranche” means the collective reference to Eurodollar Rate Loans, the Interest
Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

     “Transferee” has the meaning specified in Section 10.16.

     “Transfer Effective Date” has the meaning specified in Section 10.6(c).

     “Transition Charges Principal and Interest” means the non-bypassable transition
charges billed to customers for payment of debt service on Securitization Securities.

     “Triggering Event” has the meaning specified in Section 4.8(b).

26

 

     “True-Up Litigation” means any litigation or other proceeding in connection
with the determination by the PUC of the recovery by the Borrower and its Subsidiaries of
stranded costs and other amounts to be recovered in the true-up process.

     “TW Stock” means shares of common stock of Time Warner Inc., AOL Inc. and Time
Warner Cable Inc., and any other Reference Shares (as defined in the ZENS Indenture).

     “Type” refers to the determination of whether (a) a Revolving Loan is an ABR
Loan or a Eurodollar Rate Loan or (b) a Swingline Loan is an ABR Loan or a Money Market Loan
(or a Borrowing comprised of such Loans).

     “United States” means the United States of America.

     “Unrestricted Subsidiary” means (a) any MLP Unrestricted Subsidiary, (b) any
Joint Venture Entity that is a Subsidiary of the Borrower, (c) any Subsidiary of the
Borrower that is designated by the Borrower as an Unrestricted Subsidiary in accordance with
this definition and (d) any direct or indirect Subsidiary of any of the foregoing. The
Borrower may at any time designate any Subsidiary of the Borrower as an Unrestricted
Subsidiary if (x) the aggregate amount of net tangible assets of all Unrestricted
Subsidiaries (other than MLP Unrestricted Subsidiaries) at the time of designation does not
exceed, or would not exceed as a result of such designation, 10% of the Net Tangible Assets,
(y) such designation and the Investment of the Borrower in such Subsidiary complies with the
limitations in Section 7.2(g) and (z) such Subsidiary: (i) has no Indebtedness with
recourse to the Borrower and the Restricted Subsidiaries except that permitted under Section
7.2(g); (ii) is not party to any agreement, contract, arrangement or understanding with the
Borrower or any Significant Subsidiary of the Borrower unless the terms of any such
agreement, contract, arrangement or understanding and related transactions are substantially
no less favorable to the Borrower or such Significant Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Borrower; (iii) is a Person
with respect to which neither the Borrower nor any of its Significant Subsidiaries has any
direct or indirect obligation that violates Section 7.2(g) (A) to subscribe for additional
Capital Stock of such Person or (B) to maintain or preserve such Person’s financial
condition or to cause such Person to achieve any specified levels of operating results; and
(iv) does not, either alone or in the aggregate, operate, directly or indirectly, all or
substantially all of the business of the Borrower and its Subsidiaries.

     Any designation of a Subsidiary of the Borrower as an Unrestricted Subsidiary shall be
evidenced by a certificate of a Responsible Officer of the Borrower providing for such
designation and certifying that such designation complied with the preceding conditions and
was permitted by Section 7.2(g), which certificate shall be delivered to the Administrative
Agent. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Agreement and any Indebtedness of such Subsidiary shall be
deemed to be incurred by a Restricted Subsidiary of the Borrower as of such date and, if
such Indebtedness is not permitted to be incurred as of such date

27

 

under Section 7.2(g), the Borrower shall be in default of such covenant. The Borrower
may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that such designation shall be deemed to be an incurrence of Indebtedness
by such Subsidiary of any outstanding Indebtedness of such Unrestricted Subsidiary and such
designation shall only be permitted if (1) such Indebtedness is permitted under this
Agreement calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period; and (2) no Default or Event of Default would
be in existence following such designation.

     “Utility Holding, LLC” means Utility Holding, LLC, a Delaware limited liability
company and a Wholly-Owned Subsidiary of the Borrower.

     “Wholly-Owned”, when used in reference to any Subsidiary of any Person, means
that all the outstanding Capital Stock (other than directors’ qualifying shares required by
law) of such Subsidiary is at the time owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned Subsidiaries of
such Person.

     “ZENS” means the 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029
issued pursuant to the ZENS Indenture by the Borrower in an initial aggregate face amount of
$999,999,943.25 and the obligations at maturity of which may be determined by reference to
            shares of TW Stock.

     “ZENS Indenture” means the Indenture entered into by the Borrower in connection
with the issuance of the ZENS, together with all instruments and other agreements entered
into by the Borrower in connection therewith.

     SECTION 1.2. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan” or a “Swingline Loan”)
or by Type (e.g., a “Eurodollar Loan” or an “ABR Loan”). Borrowings also may be classified and
referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing” or
an “ABR Borrowing”).

     SECTION 1.3. Other Definitional Provisions.

     (a) Unless otherwise specified therein, all terms defined in this Agreement shall have such
defined meanings when used in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.

     (b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i) the words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation”, (ii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and
the words “incurred” and “incurrence” shall have correlative meanings), (iii) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, Capital Stock, securities, revenues,
accounts, leasehold interests and contract rights, (iv) references to
agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to
refer

28

 

to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise
modified from time to time, and (v) references to any Person shall, unless otherwise specified, be
construed to include such Person’s successors and assigns.

     (c) The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

     (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

     SECTION
1.4. Accounting Terms; GAAP (a). Except as otherwise expressly provided in
this Agreement, all terms of an accounting or financial nature in this Agreement shall be construed
in accordance with GAAP; provided that if the Borrower notifies the Administrative Agent that the
Borrower requests an amendment to any provision of this Agreement to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrower that the Majority Banks
request an amendment to any provision of this Agreement for such purpose), regardless of whether
any such notice is given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance with this Agreement.

     SECTION 1.5. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit
in effect at such time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such times.

ARTICLE II

AMOUNTS AND TERMS OF THE LOANS AND LETTERS OF CREDIT

     SECTION 2.1. The Commitments

     (a) Each Bank severally agrees, on the terms and subject to the conditions hereinafter set
forth, to make revolving credit loans (each such loan, a “Revolving Loan”) to the Borrower
from time to time on any Business Day during the period from the Closing Date until the Termination
Date in an aggregate principal amount that will not result in (i) such Bank’s Outstanding
Extensions of Credit exceeding such Bank’s Commitment or (ii) the Total
Outstanding Extensions of Credit exceeding the Total Commitments; provided that no
Revolving Loan shall be made as a Eurodollar Rate Loan with an Interest Period ending after the
Termination Date.

29

 

     (b) Each Revolving Borrowing shall consist of Revolving Loans of the same Type made on the
same day by the Banks ratably according to their respective Revolving Percentages. Each Revolving
Borrowing of Eurodollar Rate Loans by the Borrower shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof; provided that no more
than ten Eurodollar tranches shall be outstanding at any time. Each Revolving Borrowing of ABR
Loans by the Borrower shall be in an aggregate principal amount of $1,000,000 or an integral
multiple of $500,000 in excess thereof. Within the limits of the applicable Commitments, the
Borrower may borrow, prepay pursuant to Section 4.6 and reborrow Revolving Loans under this Section
2.1. The principal amount outstanding on the Revolving Loans and all other amounts accrued
hereunder shall be due and payable on the Termination Date, together with accrued and unpaid
interest thereon.

     SECTION 2.2. Procedure for Revolving Loan Borrowing

     (a) The Borrower may borrow Revolving Loans on any Business Day during the period from and
including the Closing Date to and excluding the Termination Date, provided that the
Borrower shall give the Administrative Agent irrevocable oral notice or written notice pursuant to
a notice of borrowing, in substantially the form of Exhibit A hereto (“Notice of
Borrowing”), which shall be signed by the Borrower and shall specify therein the requested (i)
date of such Borrowing, (ii) Type of Revolving Loans comprising such Borrowing, (iii) aggregate
amount of such Borrowing and (iv) Interest Period for the Revolving Loans comprising such Borrowing
(in the case of any Borrowing of Eurodollar Rate Loans):

     (i) not later than 11:00 A.M. (New York City time) on the third Business Day prior to
the date of the proposed Borrowing in the case of a Borrowing of Eurodollar Rate Loans;

     (ii) not later than 11:00 A.M. (New York City time) on the Business Day immediately
preceding the date of the proposed Borrowing in the case of a Borrowing of Early Funding ABR
Loans; and

     (iii) not later than 11:00 A.M. (New York City time) on the same Business Day of the
proposed Borrowing in the case of a Borrowing of any other ABR Loans.

With respect to any oral notice of borrowing given by the Borrower, the Borrower shall promptly
thereafter confirm such notice in writing pursuant to a Notice of Borrowing. Upon receipt of any
such notice, the Administrative Agent shall promptly notify each Bank thereof. Each Bank shall,
before 1:00 P.M. (New York City time) on the requested Borrowing Date, make available to the
Administrative Agent at the Funding Office, in immediately available funds, such Bank’s applicable
Revolving Percentage of such Borrowing; provided, however, that, in the event of a
requested ABR Loan with respect to which the Borrower has delivered its Notice of Borrowing on the
Business Day immediately preceding the requested Borrowing Date (an “Early Funding ABR
Loan”), each Bank shall make its applicable Revolving Percentage of such Borrowing
available before 10:00 A.M. (New York City time) on the requested Borrowing Date. The
Administrative
Agent shall, no later than 2:00 P.M. (New York City time) on such date (or no later
than 11:00 A.M. (New York City time), in the case of an Early Funding ABR Loan), make available to
the Borrower the proceeds of the Revolving Loans received by the Administrative

30

 

Agent hereunder by
crediting such account of the Borrower which the Administrative Agent and the Borrower shall from
time to time designate. Each Notice of Borrowing shall be irrevocable and binding on the Borrower.

     (b) Unless the Administrative Agent shall have received notice from a Bank at least two hours
prior to the applicable time described in clause (a) above by which such Bank is required to
deliver its funds to the Administrative Agent with respect to any Borrowing that such Bank will not
make available to the Administrative Agent such Bank’s applicable Revolving Percentage of such
Borrowing, the Administrative Agent may assume that such Bank has made such portion available to
the Administrative Agent on the date of such Borrowing in accordance with Section 2.2(a) and the
Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If such amount is made available to the Administrative Agent on a
date after such date of Borrowing, such Bank shall pay to the Administrative Agent on demand an
amount equal to the product of (i) the daily average Federal Funds Effective Rate during such
period, times (ii) the amount of such Bank’s applicable Revolving Percentage of such Borrowing,
times (iii) a fraction, the numerator of which is the number of days that elapse from and including
such date of Borrowing to the date on which such Bank’s applicable Revolving Percentage of such
Borrowing shall have become immediately available to the Administrative Agent and the denominator
of which is 360. A certificate of the Administrative Agent submitted to any Bank with respect to
any amounts owing under this Section 2.2(b) shall be conclusive in the absence of manifest error.
If such Bank shall repay to the Administrative Agent such corresponding amount, such amount so
repaid shall constitute such Bank’s Revolving Loan as part of such Borrowing for purposes of this
Agreement. If such Bank’s applicable Revolving Percentage of such Borrowing is not in fact made
available to the Administrative Agent by such Bank within one (1) Business Day of such date of
Borrowing, the Administrative Agent shall be entitled to recover such amount with interest thereon
at the rate per annum, equal to (i) the Alternate Base Rate (in the case of ABR Loans) or (ii) the
Federal Funds Effective Rate (in the case of Eurodollar Rate Loans), on demand, from the Borrower.

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

     SECTION 2.3. [Reserved]

     SECTION 2.4. Swingline Loans

     (a) Subject to the terms and conditions set forth herein (including satisfaction of the
conditions precedent set forth in Sections 5.1 (on the Closing Date) and 5.2 (upon the making of
each Swingline Loan)), the Swingline Lender agrees to make Swingline Loans to the Borrower from
time to time during the period from the Closing Date until the Termination Date, in an
aggregate principal amount at any time outstanding that will not result in (i) the aggregate
principal amount of outstanding Swingline Loans exceeding $100,000,000 (the “Swingline
Commitment”) or (ii) the Total Outstanding Extensions of Credit exceeding the Total
Commitments; provided that the Swingline Lender shall not be required to make a Swingline

31

 

Loan to refinance an outstanding Swingline Loan. Each Swingline Loan shall be in an amount equal
to $500,000 or a whole multiple of $100,000 in excess thereof. The Swingline Loans may from time
to time be (i) ABR Loans, (ii) Money Market Rate Loans or (iii) a combination thereof, as
determined by the Borrower and notified to the Administrative Agent and the Swingline Lender in
accordance herewith (and shall not be entitled to be converted into Eurodollar Rate Loans). Within
the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may
borrow, prepay and reborrow Swingline Loans. The Borrower hereby unconditionally promises to pay
to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of
the Maturity Date and the fourteenth (14th) Business Day after such Swingline Loan is made.

     (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent and the
Swingline Lender of such request by telephone (confirmed pursuant to a Notice of Borrowing by
facsimile or e-mail), not later than (i) 12:00 Noon (New York City time) in the case of ABR Loans,
or (ii) 2:00 P.M. (New York City time) in the case of Money Market Rate Loans, on the day of a
proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day), amount of the requested Swingline Loan, and whether the
requested Swingline Loan shall be an ABR Loan, a Money Market Rate Loan or a combination thereof.
The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit
to the general deposit account of the Borrower with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of any payment that an Issuing Bank makes under a
Letter of Credit as provided in Section 2.5(e), by remittance to the Issuing Bank) by 3:00 P.M.
(New York City time) on the requested date of such Swingline Loan.

     (c) The Swingline Lender may, by written notice given to the Administrative Agent not later
than 10:00 A.M. (New York City time) on any Business Day, require the Banks to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Banks will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each
Bank, specifying in such notice such Bank’s Revolving Percentage of such Swingline Loan or
Swingline Loans. Each Bank hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such
Bank’s Revolving Percentage of such Swingline Loan or Swingline Loans. Each Bank acknowledges and
agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph
is absolute and unconditional and shall not be affected by any circumstance whatsoever, including
the occurrence and continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Bank shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.2 with respect to
Revolving Loans made by such Bank (and Section 2.2 shall apply, mutatis mutandis,
to the payment obligations of the Bank), and the Administrative Agent shall promptly pay to the
Swingline Lender the amounts so received by it from the Banks. The Administrative Agent shall notify the Borrower of any participations in
any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any
amounts received by the Swingline Lender from the Borrower (or other party on behalf of

32

 

the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a
sale of participations therein shall be promptly remitted to the Administrative Agent; any such
amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent
to the Banks that shall have made their payments pursuant to this paragraph and to the Swingline
Lender, as their interests may appear; provided that any such payment so remitted shall be
repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent
such payment is required to be refunded to the Borrower for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any
default in the payment thereof.

     SECTION 2.5. Letters of Credit. (a) L/C Commitment.

     (i) Prior to the Closing Date, the Existing Issuing Bank has issued the Existing
Letters of Credit which, from and after the Closing Date, shall constitute Letters of Credit
hereunder.

     (ii) Subject to the terms and conditions hereof (including satisfaction of the
conditions precedent set forth in Sections 5.1 (on the Closing Date) and 5.2 (upon the
issuance of each Letter of Credit)), each Issuing Bank, in reliance on the agreements of the
other Banks set forth in Section 2.5(d), agrees to issue standby letters of credit (together
with the Existing Letters of Credit, the “Letters of Credit”) for the account of the
Borrower in support of obligations (including performance, bid and similar bonding
obligations and credit enhancement) of the Borrower and its Affiliates on any Business Day
on or after the Closing Date and prior to the Termination Date in such form as may be
approved from time to time by such Issuing Bank; provided that no Issuing Bank shall
issue any Letter of Credit if, after giving effect to such issuance, (A) the L/C Obligations
would exceed the L/C Commitment or (B) the Total Outstanding Extensions of Credit then
outstanding would exceed the Total Commitments then in effect and provided,
further, that neither JPMorgan Chase Bank, N.A. nor Bank of America, N.A. shall be
required, without the consent of such Issuing Bank, to issue Letters of Credit in excess of
$100,000,000 at any time outstanding for each such Issuing Bank.

     (iii) Each Letter of Credit shall be denominated in Dollars and shall be a standby
letter of credit issued to support obligations of the Borrower or any of its Affiliates,
contingent or otherwise, and expire no later than the Maturity Date.

     (iv) No Issuing Bank shall at any time be obligated to issue any Letter of Credit
hereunder if such issuance would conflict with, or cause such Issuing Bank or any L/C
Participant to exceed any limits imposed on such Issuing Bank by, any applicable Requirement
of Law.

     (b) Procedure for Issuance of Letters of Credit. The Borrower may from time to time
request that an Issuing Bank (i) issue a Letter of Credit by delivering to such Issuing Bank at its
address for notices specified herein an Application therefor, completed to the satisfaction of such
Issuing Bank or (ii) extend, modify or increase the amount of an existing Letter of Credit by
delivering to such Issuing Bank at its address for notices specified herein a notice identifying
the Letter of Credit to be extended, modified or increased, the proposed date of such extension,

33

 

modification or increase, the name and address of the beneficiary thereof and such other
information as shall be necessary to extend, modify or increase such Letter of Credit. Upon
receipt of any Application or a request for an extension, modification or increase of an existing
Letter of Credit, the Issuing Bank will process such Application or request and shall promptly
issue the Letter of Credit (or an amendment to such existing Letter of Credit, as applicable)
requested thereby (but in no event shall any Issuing Bank be required to issue any Letter of Credit
(or extension, modification or increase of an existing Letter of Credit) earlier than two Business
Days after its receipt of the Application or request therefor, as applicable) by issuing the
original of such Letter of Credit (or amendment thereof, as applicable) in a form satisfactory to
the Borrower to the beneficiary thereof or as otherwise may be agreed by such Issuing Bank and
Borrower. The relevant Issuing Bank shall furnish a copy of such Letter of Credit (or amendment
thereof, as applicable) to the Borrower promptly following the issuance thereof and notify the
Banks of the amount thereof. In the event of any inconsistency between the terms and conditions of
this Agreement and the terms and conditions of the Application or other agreement submitted by the
Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

     (c) Fees, Commissions and Other Charges.

     (i) The Borrower shall pay to the Administrative Agent, for the account of the L/C
Participants in accordance with their respective Revolving Percentages, a Letter of Credit
participation fee with respect to their participations in each Letter of Credit, which shall
accrue at the rate per annum equal to the Applicable Rate for Eurodollar Rate Loans then in
effect, calculated on the basis of a 365- (or 366-, as the case may be) day year, on the
aggregate amount available to be drawn under such Letter of Credit for each day during the
period from the last L/C Fee Payment Date (or, if later, the date of issuance of such Letter
of Credit) to the date on which such payment is due hereunder. The Borrower shall pay to
the Administrative Agent, for the account of the relevant Issuing Bank, a fronting fee with
respect to each Letter of Credit issued by such Issuing Bank, which shall accrue at the rate
per annum equal to 0.20%, calculated on the basis of a 365- (or 366-, as the case may be)
day year, on the aggregate amount available to be drawn under such Letter of Credit issued
by such Issuing Bank for each day during the period from the last L/C Fee Payment Date to
the date upon which such payment is due hereunder. Such Letter of Credit participation fees
and fronting fees shall be payable in arrears on each L/C Fee Payment Date and shall be
nonrefundable.

     (ii) In addition to the foregoing fees, the Borrower shall pay or reimburse each
Issuing Bank for such normal and customary costs and reasonable expenses as are incurred or
charged by such Issuing Bank in issuing, effecting payment under, amending or otherwise
administering any Letter of Credit.

     (iii) The Administrative Agent shall, promptly following its receipt thereof,
distribute to the relevant Issuing Bank and the L/C Participants all fees received by the
Administrative Agent for their respective accounts pursuant to this Section 2.5(c).

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     (d) L/C Participations.

     (i) Each Issuing Bank irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce each Issuing Bank to issue Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from
such Issuing Bank, on the terms and conditions hereinafter stated, for such L/C
Participant’s own account and risk an undivided interest equal to such L/C Participant’s
Revolving Percentage in each Issuing Bank’s obligations and rights under each Letter of
Credit issued hereunder and the aggregate amount of drawings under Letters of Credit that
have not then been reimbursed pursuant to Section 2.5(e). Each L/C Participant
unconditionally and irrevocably agrees with each Issuing Bank that, if a draft is paid under
any Letter of Credit for which such Issuing Bank is not reimbursed in full by the Borrower
in accordance with the terms of this Agreement, such L/C Participant shall pay to such
Issuing Bank upon demand at such Issuing Bank’s address for notices specified herein an
amount equal to such L/C Participant’s Revolving Percentage of the amount of such draft, or
any part thereof, which is not so reimbursed. Each Bank acknowledges and agrees that its
obligation to acquire participations pursuant to this Section 2.5(d)(i) in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.

     (ii) If any amount required to be paid by any L/C Participant to an Issuing Bank
pursuant to Section 2.5(d)(i) in respect of any unreimbursed portion of any payment made by
such Issuing Bank under any Letter of Credit is not paid to such Issuing Bank within one
Business Day after the date such payment is due, such L/C Participant shall pay to such
Issuing Bank on demand an amount equal to the product of (A) such amount, times (B) the
daily average Federal Funds Effective Rate as quoted by the relevant Issuing Bank, during
the period from and including the date such payment is required to the date on which such
payment is immediately available to such Issuing Bank, times (C) a fraction, the numerator
of which is the number of days that elapse during such period and the denominator of which
is 360. If any such amount required to be paid by any L/C Participant pursuant to Section
2.5(d)(i) is not in fact made available to the relevant Issuing Bank by such L/C Participant
within three (3) Business Days after the date such payment is due, such Issuing Bank shall
be entitled to recover from such L/C Participant, on demand, such amount with interest
thereon calculated from such due date at the Alternate Base Rate. A certificate of the
relevant Issuing Bank submitted to any L/C Participant with respect to any amounts owing
under this subsection shall be conclusive in the absence of manifest error.

     (iii) Whenever, at any time after any Issuing Bank has made payment under any Letter of
Credit and has received from any L/C Participant its pro rata share of such payment in accordance with Section 2.5(d)(i), such Issuing Bank receives any payment
related to such Letter of Credit (whether directly from the Borrower or otherwise, including
proceeds of collateral applied thereto by the Issuing Bank), or any payment of interest on
account thereof, such Issuing Bank will distribute to such L/C Participant its

35

 

pro rata share thereof; provided, however, that in the event that any such payment
received by such Issuing Bank shall be required to be returned by such Issuing Bank, such
L/C Participant shall return to such Issuing Bank the portion thereof previously distributed
by such Issuing Bank to it.

     (e) Reimbursement Obligation of the Borrower. (i) The Borrower shall reimburse each
Issuing Bank for any payment that such Issuing Bank makes under a Letter of Credit on or before the
date of such payment if the Borrower receives notice of such payment at or before 10:00 A.M. (New
York City time) on the date such payment is made by such Issuing Bank; provided,
however, that, if the Borrower does not receive notice of such payment at or before such
time on such date or does not reimburse such Issuing Bank under this Section 2.5(e)(i), then
Section 2.5(e)(ii) shall apply. Each such payment shall be made to the relevant Issuing Bank at
its address for notices specified herein in Dollars and in immediately available funds.

     (ii) Notwithstanding Section 5.2, each drawing under any Letter of Credit shall be
deemed to constitute a Borrowing of ABR Loans in the amount of such drawing unless the
Borrower has reimbursed the relevant Issuing Bank under Section 2.5(e)(i). The Borrowing
Date with respect to each such borrowing shall be deemed to be the date of such drawing.

     (f) Obligations Absolute.

     (i) The Borrower’s payment obligations under Section 2.5(e) shall be absolute,
irrevocable and unconditional under any and all circumstances and irrespective of any
set-off, counterclaim or defense to payment that the Borrower may have or have had against
the relevant Issuing Bank or any beneficiary of a Letter of Credit, other than a defense
based upon the gross negligence or willful misconduct as determined by a final,
non-appealable judgment of a court of competent jurisdiction.

     (ii) The Borrower also agrees with each Issuing Bank that no Issuing Bank shall be
responsible for, and the Borrower’s Reimbursement Obligations under Section 2.5(e) shall not
be affected by, among other things, (i) the validity or genuineness of documents or of any
endorsements thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, (ii) any dispute between or among the Borrower and any beneficiary of
any Letter of Credit or any other party to which such Letter of Credit may be transferred,
(iii) any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit
or any such transferee, (iv) any lack of validity or enforceability of any Letter of Credit
or this Agreement, or any term or provision therein or herein, (v) payment by the Issuing
Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit or (vi) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder or under any Letter of Credit.

     (iii) No Issuing Bank shall be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however

36

 

transmitted, in connection with any Letter of Credit, except for errors or omissions caused by such Issuing
Bank’s gross negligence or willful misconduct as determined by a final, non-appealable
judgment of a court of competent jurisdiction.

     (iv) The Borrower agrees that any action taken or omitted by any Issuing Bank under or
in connection with any Letter of Credit or the related drafts or documents, if done in the
absence of gross negligence or willful misconduct as determined by a final, non-appealable
judgment of a court of competent jurisdiction, shall be binding on the Borrower and shall
not result in any liability of such Issuing Bank to the Borrower.

     (g) Letter of Credit Payments. If any draft shall be presented for payment under any
Letter of Credit, the relevant Issuing Bank shall promptly notify the Borrower by telephone
(confirmed in writing) of the date and amount thereof and whether such Issuing Bank has made or
will make a payment thereunder. The responsibility of such Issuing Bank to the Borrower in
connection with any draft presented for payment under any Letter of Credit shall, in addition to
any payment obligation expressly provided for in such Letter of Credit, be limited to determining
that the documents (including each draft) delivered under such Letter of Credit in connection with
such presentment are in conformity with such Letter of Credit.

     (h) Application. To the extent that any provision of any Application related to any
Letter of Credit is inconsistent with the provisions of this Section 2.5, the provisions of this
Section 2.5 shall control.

     (i) Replacement, Termination or Resignation of an Issuing Bank.

     (i) Any Issuing Bank may be replaced at any time by written agreement among the
Borrower, the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the Banks of any such replacement of such Issuing Bank. At the time any
such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for
the account of such replaced Issuing Bank pursuant to Section 2.5(c). From and after the
effective date of any such replacement, (A) the applicable successor Issuing Bank shall have
all the rights and obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter and (B) references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party
hereto and shall continue to have all the rights and obligations of an Issuing Bank under
this Agreement with respect to Letters of Credit issued by it prior to such replacement, but
shall not be required to issue additional Letters of Credit.

     (ii) Any Issuing Bank may be terminated at any time upon not less than 10 Business
Days’ written notice by the Borrower to the Administrative Agent and such
Issuing Bank. The Administrative Agent shall notify the Banks of any such termination
of an Issuing Bank. At the time any such termination shall become effective, the Borrower
shall pay all unpaid fees accrued for the account of the terminated Issuing Bank pursuant to
Section 2.5(c). After the effective date of the termination of an Issuing Bank

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hereunder, (i) such Issuing Bank shall remain a party hereto and shall continue to have all the rights
and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such termination, but shall not be required to issue additional
Letters of Credit and (ii) if no Letter of Credit previously issued by such Issuing Bank is
then outstanding and no LC Exposure in respect of any such Letter of Credit then exists,
such terminated Issuing Bank shall not be deemed an Issuing Bank for purposes of any
provisions hereof or the other Loan Documents which require the consent or approval of each
Issuing Bank (provided that such terminated Issuing Bank’s consent shall be required for any
waiver, amendment or modification of this Agreement or any other Loan Document that affects
the rights or duties of such terminated Issuing Bank hereunder).

     (iii) Any Issuing Bank may resign as an Issuing Bank at any time after which such
Issuing Bank is no longer a Bank upon not less than 15 Business Days’ prior written notice
to the Administrative Agent and the Borrower. The Administrative Agent shall notify the
Banks of any such resignation of such Issuing Bank. At the time any such resignation shall
become effective, the Borrower shall pay all unpaid fees accrued for the account of such
resigned Issuing Bank pursuant to Section 2.5(c). From and after the effective date of any
such resignation, references herein to the term “Issuing Bank” shall be deemed to refer to
such resigned Issuing Bank if the context shall so require. After the resignation of an
Issuing Bank hereunder, the resigned Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such resignation, but shall not be
required to issue additional Letters of Credit.

     SECTION 2.6. Increase in the Total Commitments. (a) The Borrower may,
without the consent of the Banks, the Administrative Agent or the Issuing Banks, from time to time
cause an increase in the Total Commitments (each, a “Commitment Increase”), whether or not
the Total Commitments have been reduced pursuant to Section 4.5, by obtaining Commitments from one
or more additional Eligible Assignees that are not already Banks hereunder (each, a “New
Bank”) and/or by allowing one or more existing Banks to increase their respective Commitments
(each, an “Increasing Bank”); provided that (i) each Commitment Increase shall be
in a minimum amount of $10,000,000 or an integral multiple of $5,000,000 in excess thereof, (ii)
each Commitment Increase shall become effective as of a date (the “Increase Date”) that is
at least 90 days prior to the Maturity Date then in effect, (iii) no such Commitment Increase shall
result in the Total Commitments exceeding $1,800,000,000, (iv) each New Bank and each Increasing
Bank providing any portion of any Commitment Increase must be satisfactory to the Administrative
Agent and each Issuing Bank, which approval shall not be unreasonably withheld, delayed or
conditioned, (v) no Bank shall be required to provide any such increase, and (vi) on the date of
any request by the Borrower for a Commitment Increase and on the related Increase Date, the
applicable conditions set forth in Section 5.3 shall be satisfied.

     (b) Each Commitment Increase must be requested by written notice from the Borrower to the
Administrative Agent substantially in the form attached hereto as Exhibit E. Each such
notice shall specify (i) the proposed Increase Date, (ii) the amount of the requested Commitment
Increase (which amount shall conform to the requirements of Section 2.6(a)), (iii) the identity of
each New Bank and/or each Increasing Bank that is participating in such

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Commitment Increase, and (iv) the amount of the respective Commitments of the then existing Banks and the New Banks from and
after the applicable Increase Date. If the Administrative Agent and each Issuing Bank approve the
New Banks and/or Increasing Banks participating in such Commitment Increase (such approval not to
be unreasonably withheld, delayed or conditioned), the Borrower, the Administrative Agent, the
Issuing Banks and the applicable New Banks and/or Increasing Banks shall execute a Commitment
Increase Agreement, and such Commitment Increase shall be effective on the Increase Date specified
therein; provided that, as a condition to the effectiveness of any Commitment Increase, if
requested by the Administrative Agent, the Borrower shall deliver to the Administrative Agent (A)
certified copies of resolutions of the Board of Directors of the Borrower or the Executive
Committee of such Board approving such Commitment Increase and (B) opinions of counsel for the
Borrower (which may be in-house counsel), in form and substance reasonably acceptable to the
Administrative Agent, covering such matters covered by the opinions of counsel delivered pursuant
to Section 5.1(c) as the Administrative Agent may reasonably request. On each Increase Date, upon
fulfillment of the conditions set forth in the immediately preceding sentence, the Administrative
Agent shall notify the Banks (including each New Bank) and the Borrower of the occurrence of the
Commitment Increase effected on such Increase Date and shall record in the Register the relevant
information with respect to each Increasing Bank and each New Bank.

     (c) The Borrower acknowledges that, if the Total Commitments are increased on a non-pro-rata
basis pursuant to any Commitment Increase and there are any outstanding Loans as of the Increase
Date for such Commitment Increase, prepayments and/or fundings of all or portions of certain Loans
on such date may be required in order for each Bank to hold its Revolving Percentage of each
outstanding Loan after giving effect to such Commitment Increase (and any such prepayment or
funding shall be subject to the other provisions of this Agreement). Effective upon each
Commitment Increase, the amount of the participations held by each Bank in each Letter of Credit
then outstanding shall be adjusted such that, after giving effect to such adjustments, each Bank
shall hold participations in each such Letter of Credit in accordance with the Revolving Percentage
of such Bank after giving effect to such Commitment Increase.

     SECTION 2.7. Extension Option. The Borrower may request that the Commitments be
extended for up to two additional one year periods by providing not less than 30 days’ written
notice (the date of such notice, a “Notice Date”) to the Administrative Agent prior to any
anniversary of the Closing Date. If a Bank agrees, in its individual and sole discretion, to
extend its Commitment (such Bank, an “Extending Bank”), it will notify the Administrative
Agent, in writing, of its decision to do so no later than 20 days after the applicable Notice Date.
The Administrative Agent will notify the Borrower, in writing, of the Banks’ decisions no later
than 25 days after such Notice Date. The Extending Banks’ Commitments will be extended for an
additional year from the then current Maturity Date so long as (i) the Commitments of the Extending
Banks (after giving effect to any assumption by any Extending Banks of Commitments of Declining
Banks as described below), together with the Commitments of any new Banks that replace any
Declining Banks, represent more than 50% of the Total
Commitments then in effect, and (ii) on the date of any request by the Borrower to extend the
Commitments, the applicable conditions set forth in Section 5.3 shall be satisfied. No Bank shall
be required to consent to any such extension request and any Bank that declines or does not respond
to the Borrower’s request for an extension of the Commitments (a “Declining Bank”) will
have its Commitment terminated on the then existing Maturity Date (without regard to any

39

 

extension of the Commitments of other Banks). The Borrower will have the right to accept Commitments from
any Eligible Assignee that is not a Bank in an aggregate amount up to the aggregate amount of the
Commitments of any Declining Banks; provided that (i) the Extending Banks will have the
right to increase their Commitments in an aggregate amount up to the aggregate amount of the
Declining Banks’ Commitments before the Borrower will be permitted to substitute any Eligible
Assignees for the Declining Banks and (ii) any Eligible Assignee proposed to be substituted for a
Declining Bank (unless such Eligible Assignee is an affiliate of a Bank) must be approved by the
Administrative Agent and the Issuing Banks, such approval, in each case, not to be unreasonably
withheld, delayed or conditioned. The Borrower may only extend the Maturity Date twice during the
term of this Agreement pursuant to this Section 2.7.

     SECTION 2.8. Defaulting Banks. Notwithstanding any provision of this
Agreement or any other Loan Document to the contrary, if any Bank becomes a Defaulting Bank, then
the following provisions shall apply for so long as such Bank is a Defaulting Bank:

     (a) Commitment Fees shall cease to accrue on the unfunded portion of the Commitment of such
Defaulting Bank pursuant to Section 3.2(a);

     (b) the Commitment and Outstanding Extensions of Credit of such Defaulting Bank shall not be
included in determining whether all Banks (or each Bank) or the Majority Banks have taken or may
take any action hereunder (including any consent to any amendment, waiver or other modification
pursuant to Section 10.1); provided, that this clause (b) shall not apply to the vote of a
Defaulting Bank in the case of an amendment, waiver or other modification requiring the consent of
such Bank or each Bank affected thereby if such Bank is an affected Bank; provided,
further, that there shall not be any amendment, modification or waiver (i) of any provision
of Section 4.2 or Section 10.1 in a manner that would alter the pro rata sharing of payments
required thereby, or (ii) causing the reduction of the percentage specified in the definition of
Majority Banks, or (iii) causing the consent to the assignment or transfer by the Borrower of any
of its respective rights and obligations under this Agreement and the other Loan Documents, in each
case without the consent of such Bank;

     (c) if any Swingline Exposure or L/C Obligations exist at the time such Bank becomes a
Defaulting Bank then;

     (i) all or any part of the Swingline Exposure and L/C Exposure of such
Defaulting Bank shall be reallocated (effective as of the date such Bank becomes a
Defaulting Bank) among the non-Defaulting Banks in accordance with their respective
Revolving Percentages, but only to the extent the sum of all non-Defaulting Banks’
Outstanding Extensions of Credit plus such Defaulting Bank’s Swingline Exposure and
L/C Exposure does not exceed the total of all non-Defaulting Banks’ Commitments;

     (ii) if the reallocation described in clause (i) above cannot, or can only
partially, be effected, the Borrower shall, within two Business Days following the
Borrower’s receipt of written notice by the Administrative Agent, (x) first,
prepay such Defaulting Bank’s Swingline Exposure and (y) second, cash
collateralize for the benefit of the applicable Issuing Banks only the Borrower’s
obligations

40

 

corresponding to such Defaulting Bank’s L/C Exposure (after giving
effect to any partial reallocation pursuant to clause (i) above) in accordance with
the procedures set forth in Section 8.2 for so long as such L/C Exposure is
outstanding;

     (iii) if the Borrower cash collateralizes any portion of such Defaulting Bank’s
L/C Exposure pursuant to clause (ii) above, the Borrower shall not be required to
pay any fees to such Defaulting Bank pursuant to Section 2.5(c) with respect to such
Defaulting Bank’s L/C Exposure during the period such Defaulting Bank’s L/C Exposure
is cash collateralized;

     (iv) if all or any portion of such Defaulting Bank’s L/C Exposure is
reallocated pursuant to clause (i) above, then the Letter of Credit participation
fees that otherwise would have been payable to such Defaulting Bank pursuant to
Section 2.5(c)(i) with respect to such Defaulting Bank’s reallocated L/C Exposure
shall be payable to the non-Defaulting Banks in accordance with such non-Defaulting
Banks’ Revolving Percentages after giving effect to such reallocation; and

     (v) if all or any portion of such Defaulting Bank’s L/C Exposure is neither
reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then,
without prejudice to any rights or remedies of any Issuing Bank or any other Bank
hereunder, all Letter of Credit participation fees that otherwise would have been
payable to such Defaulting Bank under Section 2.5(c)(i) with respect to such
Defaulting Bank’s unreallocated L/C Exposure shall be payable to the Issuing Banks,
ratably based on the portion of such L/C Exposure attributable to Letters of Credit
issued by each Issuing Bank, until and to the extent that such L/C Exposure is
reallocated and/or cash collateralized pursuant to clause (i) or (ii) above;

     (d) so long as such Bank is a Defaulting Bank, the Swingline Lender shall not be required to
fund any Swingline Loan and no Issuing Bank shall be required to issue, amend or increase any
Letter of Credit, unless the Swingline Lender is satisfied that the related exposure in respect of
Swingline Loans, and the Issuing Banks are satisfied that the Defaulting Bank’s then outstanding
L/C Exposure, will be 100% covered by the Commitments of the non-Defaulting Banks and, to the
extent such 100% coverage is not achieved, by cash collateral which will be provided by the
Borrower in accordance with Section 2.8(c), and participating interests in any newly made Swingline
Loan or any newly issued or increased Letter of Credit shall be allocated among non-Defaulting
Banks in a manner consistent with Section 2.8(c)(i) (and such Defaulting Bank shall not participate
therein).

     If (i) a Bankruptcy Event with respect to a Parent of any Bank shall occur following the date
hereof and for so long as such event shall continue or (ii) the Swingline Lender or the Issuing
Bank has a good faith belief that any Bank has defaulted in fulfilling its obligations to extend
credit generally (such Bank referenced in clauses (i) and (ii), a “Disregarded Bank”), the
Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be
required to issue, amend or increase any Letter of Credit, unless the Swingline Lender is

41

 

satisfied that the related exposure in respect of Swingline Loans, and the Issuing Banks are satisfied that
the Disregarded Bank’s then outstanding L/C Exposure, will be 100% covered by the Commitments of
the non-Disregarded Banks and, to the extent such 100% coverage is not achieved, by cash collateral
which will be provided by the Borrower in the manner consistent with Section 2.8(c), and
participating interests in any newly made Swingline Loan or any newly issued or increased Letter of
Credit shall be allocated among the non-Disregarded Banks in a manner consistent with Section
2.8(c) (and such Disregarded Bank shall not participate therein).

     In the event that the Administrative Agent, the Borrower, the Swingline Lender and the Issuing
Banks each agrees that a Defaulting Bank has adequately remedied all matters that caused such Bank
to be a Defaulting Bank, then the Swingline Exposures and L/C Exposures of the Banks shall be
readjusted to reflect the inclusion of such Bank’s Commitment, and on such date such Bank shall
purchase at par such of the Revolving Loans of the other Banks as the Administrative Agent shall
determine may be necessary in order for such Bank to hold such Revolving Loans in accordance with
its Revolving Percentage.

     The rights and remedies against, and with respect to, a Defaulting Bank under this Section 2.8
are in addition to, and cumulative and not in limitation of, all other rights and remedies that the
Administrative Agent and each Lender, each Issuing Bank, the Swingline Lender or the Borrower may
at any time have against, or with respect to, such Defaulting Bank.

ARTICLE III

PROVISIONS RELATING TO ALL LOANS

     SECTION 3.1. Evidence of Loans. (a) Each Bank shall maintain in accordance with its
usual practice an account or accounts evidencing indebtedness of the Borrower to such Bank
resulting from each Loan made by such Bank from time to time, including the amounts of principal
and interest payable and paid to such Bank from time to time under this Agreement.

     (b) The Administrative Agent shall maintain the Register pursuant to Section 10.6(d) and a
subaccount therein for each Bank, in which shall be recorded (i) the amount of each Loan made by
each Bank through the Administrative Agent hereunder, the Type thereof and each Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Bank hereunder and (iii) both the amount of any sum received
by the Administrative Agent hereunder from the Borrower and each Bank’s share thereof.

     (c) The entries made in the Register and the accounts of each Bank maintained pursuant to
Section 3.1(a) shall, to the extent permitted by applicable law, be prima facie
evidence of the existence and amount of the obligations of the Borrower therein recorded;
provided, however, that the failure of any Bank or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Loans actually made to the
Borrower by such Bank in accordance with the terms of this Agreement.

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     (d) Any Bank may request that the Loans made by such Bank be evidenced by a Note. In such
event, the Borrower shall prepare, execute and deliver to such Bank a Note payable to such Bank.

     SECTION 3.2. Fees. (a) The Borrower agrees to pay to the Administrative Agent for
the account of each Bank a commitment fee (the “Commitment Fee”), which shall accrue at the
Applicable Rate on the Available Commitment of such Bank on each day during the period from the
date hereof to the Termination Date. The accrued Commitment Fees shall be payable (i) quarterly in
arrears on the last day of each March, June, September and December until the Termination Date and
(ii) on the Termination Date.

     (b) The Commitment Fees shall be calculated by the Administrative Agent on the basis of a 365-
or 366-day year, as the case may be, for the actual days (including the first day but excluding the
last day) occurring in the period for which such Commitment Fees are payable.

     (c) The Borrower shall pay to the Administrative Agent, for its own account, the fees in the
amounts and on the dates previously agreed to in writing by the Borrower and the Administrative
Agent.

     SECTION 3.3. Interest. The Borrower shall pay interest on the unpaid principal amount
of each Loan made by each Bank from the date of such Loan until such principal amount shall be paid
in full, at the times and at the rates per annum set forth below:

     (a) ABR Loans. Each ABR Loan (excluding each Swingline Loan) shall bear interest at a
rate per annum equal at all times to the lesser of (i) the Alternate Base Rate plus the
Applicable Rate and (ii) the Highest Lawful Rate, payable quarterly in arrears on the last day of
each March, June, September and December and on the Termination Date.

     (b) Eurodollar Rate Loans. Each Eurodollar Rate Loan shall bear interest at a rate
per annum equal at all times to the lesser of (i) the sum of the Eurodollar Rate for the applicable
Interest Period for such Loan plus the Applicable Rate and (ii) the Highest Lawful Rate,
payable on the last day of such Interest Period and, with respect to Interest Periods of six months
or longer, on the ninetieth (90th) day after the commencement of the Interest Period and on each
succeeding ninetieth (90th) day during such Interest Period, and on the Termination Date. In
addition, interest on each Eurodollar Rate Loan will be payable upon any payment or prepayment of
such Eurodollar Rate Loan.

     (c) Swingline Loans. Each Swingline Loan shall bear interest at a rate per annum
equal to the lesser of (i)(A) the Alternate Base Rate plus the Applicable Rate or (B) the
Money Market Rate, at the election of the Borrower pursuant to Section 2.4, and (ii) the Highest
Lawful Rate, payable quarterly in arrears on the last day of each March, June, September and
December and on the date of payment of such Swingline Loan.

     (d) Calculations. Interest that is determined by reference to the Alternate Base Rate
(to the extent based on the Prime Rate) shall be calculated by the Administrative Agent on the
basis of a 365- or 366-day year, as the case may be, for the actual days (including the first day
but excluding the last day) occurring in the period in which such interest is payable and otherwise
shall be calculated by the Administrative Agent on the basis of a 360-day year for the

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actual days (including the first day and excluding the last day) occurring in the period for which such
interest is payable.

     (e) Default Rate. Notwithstanding the foregoing, if all or a portion of (i) the
principal amount of any Loan or Reimbursement Obligation, (ii) any interest payable thereon, or
(iii) any Commitment Fee or other amount payable hereunder shall not be paid when due (whether at
the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest,
payable from time to time on demand, at a rate per annum equal to the lesser of (A) the Highest
Lawful Rate and (B) the Default Rate, in each case from the date of such non-payment until such
amount is paid in full (after as well as before judgment).

     (f) Determination Conclusive. Each determination of an interest rate by the
Administrative Agent pursuant to any provisions of this Agreement shall be conclusive and binding
on the Borrower and the Banks in the absence of manifest error. The Administrative Agent shall, at
the request of the Borrower, deliver to the Borrower a statement showing in reasonable detail the
quotations used by the Administrative Agent in determining the Eurodollar Rate.

     SECTION 3.4. Reserve Requirements. (a) The Borrower agrees to pay to each Bank that
requests compensation under this Section 3.4 in accordance with the provisions set forth in Section
4.8(b), so long as such Bank shall be required to maintain reserves against “Eurocurrency
liabilities” under Regulation D of the Board (or, so long as such Bank shall be required by the
Board or by any other Governmental Authority to maintain reserves against any other category of
liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Loans
is determined as provided in this Agreement or against any category of extensions of credit or
other assets of such Bank that includes any Eurodollar Rate Loans), an additional amount
(determined by such Bank and notified to the Borrower pursuant to the provisions set forth in
Section 4.8(b)) representing such Bank’s calculation or, if an accurate calculation is
impracticable, reasonable estimate (using such method of allocation to such Loans of the Borrower
as such Bank shall determine in accordance with Section 4.8(a)) of the actual costs, if any,
incurred by such Bank during the relevant Interest Period as a result of the applicability of the
foregoing reserves to such Eurodollar Rate Loans, which amount in any event shall not exceed the
product of the following for each day of such Interest Period:

     (i) the principal amount of the relevant Eurodollar Rate Loans made by such Bank
outstanding on such day;

     (ii) the difference between (A) a fraction, the numerator of which is the Eurodollar
Rate(expressed as a decimal) applicable to such Eurodollar Rate Loan (expressed as a
decimal), and the denominator of which is one minus the maximum rate (expressed as a
decimal) at which such reserve requirements are imposed by the Board or other Governmental
Authority on such date, minus (B) such numerator; and

     (iii) a fraction, the numerator of which is one and the denominator of which is 360.

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     (b) The agreements in this Section 3.4 shall survive the termination of this Agreement and the
payment of all amounts payable hereunder; provided, however, that in no event shall
the Borrower be obligated to reimburse or compensate any Bank for amounts contemplated by this
Section 3.4 for any period prior to the date that is 90 days before the date upon which such Bank
requests in writing such reimbursement or compensation from the Borrower.

     SECTION 3.5. Interest Rate Determination and Protection. (a) The rate of interest
for each Eurodollar Rate Loan shall be determined by the Administrative Agent two Business Days
before the first day of each Interest Period applicable to such Loan. The Administrative Agent
shall give prompt notice to the Borrower and the Banks of the applicable interest rate determined
by the Administrative Agent for purposes of Sections 3.3(a) and (b) hereof.

     (b) If, prior to the first day of any Interest Period for a Borrowing of Eurodollar Rate
Loans, (i) the Administrative Agent shall have reasonably determined (which determination shall be
conclusive and binding upon the Borrower absent manifest error) that, by reason of circumstances
affecting the London interbank Eurodollar market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period or (ii) the Administrative Agent shall
have received notice from the Majority Banks that the Eurodollar Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the cost to such Banks
(as determined in good faith and certified by such Banks) of making or maintaining their Eurodollar
Rate Loans included in such Borrowing during such Interest Period, the Administrative Agent shall
give written notice thereof to the Borrower and the Banks as soon as practicable thereafter. If
such notice is given, (A) any Eurodollar Rate Loans requested to be made on the first day of such
Interest Period shall be made as ABR Loans, (B) any Loans that were to have been converted on the
first day of such Interest Period to Eurodollar Rate Loans shall be continued as ABR Loans and (C)
any outstanding Eurodollar Rate Loans shall be converted, on the last day of the then applicable
Interest Period, to ABR Loans. Until such notice has been withdrawn by the Administrative Agent,
no further Eurodollar Rate Loans shall be made or continued as such, nor shall the Borrower have
the right to convert ABR Loans to Eurodollar Rate Loans. The Administrative Agent will withdraw
any such notice when the circumstances giving rise to such notice no longer exist.

     SECTION 3.6. Voluntary Interest Conversion or Continuation of Revolving Loans.
(a) Each Borrowing initially shall be of the Type specified in the applicable Notice of
Borrowing and, in the case of a Borrowing of Eurodollar Rate Loans, shall have an initial Interest
Period as specified in such Notice of Borrowing. Thereafter, the Borrower may, at any time and
from time to time, but subject to Section 3.7 below, elect to (i) convert Revolving Loans of one
Type into Revolving Loans of another Type; (ii) convert Eurodollar Rate Loans for a specified
Interest Period into Eurodollar Rate Loans for a different Interest Period; or (iii) continue
Eurodollar Rate Loans for a specified Interest Period as Eurodollar Rate Loans for the same
Interest Period; provided, however, that (A) if an Event of Default has occurred
and is continuing and the Administrative Agent, at the request of the Majority Banks, so notifies
the Borrower, then, so long as an Event of Default is continuing, no Revolving Loan may be
converted into or continued as a Eurodollar Rate Loan, and (B) no Revolving Loan may be converted
into or continued as a Eurodollar Rate Loan if after giving effect thereto, Section 2.3 would be
contravened. This Section shall not apply to Swingline Borrowings, which may not be converted or
continued.

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     (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative
Agent of such request by telephone, facsimile or e-mail (i) not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed interest conversion or
continuation in the case of a conversion into or continuation of a Eurodollar Rate Loan and (ii)
not later than 11:00 A.M. (New York City time) on the Business Day preceding the proposed interest
conversion in the case of a conversion into an ABR Loan. Each telephonic notice of interest
conversion/continuation given by the Borrower under this Section 3.6(a), shall be irrevocable and
shall be confirmed promptly thereafter in writing.

     (c) Each written notice of interest conversion/continuation given by the Borrower under this
Section 3.6(a) and each confirmation of an oral notice of interest conversion/continuation given by
the Borrower under this Section 3.6(a) shall be in substantially the form of Exhibit B
hereto (“Notice of Interest Conversion/Continuation”). Each such Notice of Interest
Conversion/Continuation shall specify therein (x) the requested date of such interest conversion or
continuation; (y) the Revolving Loans to be converted or continued; and (z) if such interest
conversion or continuation involves the conversion into or continuation as Eurodollar Rate Loans,
the duration of the Interest Period for each such Eurodollar Rate Loan. If any Notice of Interest
Conversion/Continuation requests a conversion into or continuation as Eurodollar Rate Loans but
does not specify an Interest Period for such Eurodollar Rate Loans, the Borrower shall be deemed to
have selected an Interest Period of one month’s duration. Upon receipt of any such Notice of
Interest Conversion/Continuation, the Administrative Agent shall promptly notify each Bank thereof.
Each Notice of Interest Conversion/ Continuation shall be irrevocable and binding on the Borrower.

     (d) If the Borrower shall fail to deliver to the Administrative Agent a Notice of Interest
Conversion/Continuation with respect to any Borrowing of Eurodollar Rate Loans by 11:00 A.M. (New
York City time) on the third Business Day prior to the last day of the Interest Period applicable
thereto in accordance with this Section 3.6, the Administrative Agent will forthwith so notify the
Borrower and the Banks (provided that the failure to give such notice shall not affect the
conversion referred to below) and, unless such Revolving Loans are repaid as provided herein, such
Revolving Loans will automatically, on the last day of the then existing Interest Period therefor,
convert into Eurodollar Rate Loans with a one month Interest Period.

     SECTION 3.7. Funding Losses Relating to Eurodollar Rate Loans(a) The Borrower agrees,
without duplication of any other provision under this Agreement, to indemnify each Bank and to hold
each Bank harmless from any loss or expense that such Bank may sustain or incur as a consequence of
(i) default by the Borrower in payment when due of the principal amount of or interest on any
Eurodollar Rate Loan, (ii) default by the Borrower in making a borrowing of, conversion into or
continuation of any Eurodollar Rate Loan after the Borrower has given a notice requesting the same
in accordance with the provisions of this Agreement, (iii) default by the Borrower in making any
prepayment of Eurodollar Rate Loans after the Borrower has given a notice thereof in accordance
with the provisions of this Agreement or (iv) the making of a prepayment of Eurodollar Rate Loans
or the conversion of Eurodollar Rate Loans into ABR Loans, on a day that is not the last day of an
Interest Period with respect thereto or a day that is not the scheduled maturity date with respect
thereto, including in each case, any such loss or expense arising from the reemployment of funds
obtained by such Bank or from fees payable to terminate the deposits from which such funds were
obtained. The calculation of all amounts

46

 

payable to a Bank under this Section 3.7(a) shall be made pursuant to the method described in Section 4.8(a), but in no event shall such amounts payable with
respect to any Eurodollar Rate Loan exceed the amounts that would have been payable assuming such
Bank had actually funded its relevant Eurodollar Rate Loan through the purchase of a deposit
bearing interest at the applicable Eurodollar Rate in an amount equal to the amount of such
Eurodollar Rate Loan and having a maturity comparable to the Interest Period applicable to such
Eurodollar Rate Loan; provided that each Bank may fund each of its Eurodollar Rate Loans in
any manner it sees fit, and the foregoing assumption shall be utilized only for the calculation of
amounts payable under this Section 3.7(a).

     (b) The agreements in this Section 3.7 shall survive the termination of this Agreement and the
payment of all amounts payable hereunder; provided, however, that in no event shall
the Borrower be obligated to reimburse or compensate any Bank for amounts contemplated by this
Section 3.7 for amounts accruing prior to the date that is 90 days prior to the date upon which
such Bank requests in writing such reimbursement or compensation from the Borrower.

     SECTION 3.8. Change in Legality. (a) Notwithstanding any other provision of this
Agreement, if any Bank shall notify the Administrative Agent that it has determined in good faith
that the introduction of or any change in or in the interpretation or application of any law or
regulation by any Governmental Authority (in each case occurring after the date of this Agreement)
makes it unlawful, or any central bank or other Governmental Authority asserts after the date of
this Agreement that it is unlawful, for any Bank or its applicable lending office to perform its
obligations hereunder to make Eurodollar Rate Loans or to fund or maintain Eurodollar Rate Loans
hereunder, (i) the obligation of such Bank to make, or to convert Revolving Loans into, or to
continue Eurodollar Rate Loans as, Eurodollar Rate Loans shall be suspended until the
Administrative Agent shall notify the Borrower that the circumstances causing such suspension no
longer exist; (ii) the Borrower shall, at its option, either prepay in full all Eurodollar Rate
Loans of such Bank then outstanding, or convert all such Revolving Loans to ABR Loans, on the
respective last days of the then current Interest Periods with respect to such Revolving Loans (or
within such earlier period as required by law), accompanied, in the case of any prepayments, by
interest accrued thereon and any amounts payable under Section 3.7(a). Each Bank agrees that it will use reasonable efforts to
designate a different lending office for the Eurodollar Rate Loans due to such Bank that are
affected by this Section 3.8, if such designation will avoid the illegality described in this
Section 3.8 so long as such designation will not be disadvantageous to such Bank as determined by
such Bank in its sole discretion acting in good faith.

     (b) For purposes of this Section 3.8, a notice to the Borrower (with a copy to the
Administrative Agent) by any Bank pursuant to paragraph (a) above shall be effective on the date of
receipt thereof by the Borrower.

ARTICLE IV

INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS

     SECTION 4.1. Increased Costs; Capital Adequacy. (a) If, after the date of this
Agreement, the adoption of or any change in any law or regulation or in the interpretation or

47

 

application thereof by any Governmental Authority or compliance by any Bank with any request or
directive (whether or not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date of this Agreement (provided that the Dodd-Frank Wall
Street Reform and Consumer Protection Act, Basel III and all requests, rules, guidelines or
directives under, or issued in connection with, the foregoing shall be deemed to be a change in
requirements of law, regardless of the date enacted, adopted or issued):

     (i) shall subject any Bank or Issuing Bank to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit or any Application made by it, or change the
basis of taxation of payments to such Bank or Issuing Bank in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 4.3 and the imposition of, or any change
in the rate of, any Excluded Tax);

     (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Bank that is not otherwise included in the determination of
the Eurodollar Rate hereunder (except for amounts covered by Section 3.4 or any other
Section hereof); or

     (iii) shall impose on such Bank any other condition;

and the result of any of the foregoing is to increase the actual cost to such Bank, by an amount
that such Bank deems to be material, of making, converting into, continuing or maintaining
Eurodollar Rate Loans or issuing or participating in Letters of Credit or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, the Borrower shall promptly pay
such Bank, upon its demand in the manner set forth in Section 4.8(b), any additional amounts,
computed by such Bank in accordance with Section 4.8(a), necessary to compensate such Bank for such
actual increased cost or reduced amount receivable that is attributable to Loans or
Commitments (to the extent that such Bank has not already been compensated or reimbursed for such
amounts pursuant to any other provision of this Agreement). If any Bank becomes entitled to claim
any additional amounts pursuant to this Section 4.1(a) from the Borrower, it shall promptly notify
the Borrower, through the Administrative Agent, of the event by reason of which it has become so
entitled in the manner set forth in Section 4.8(b).

     (b) If any Bank determines in good faith that the introduction of or any change in or in the
interpretation or application by any Governmental Authority of any law or regulation regarding
capital adequacy after the date of this Agreement or compliance by such Bank or any corporation
controlling such Bank with any law or regulation or any guideline or request from any central bank
or other Governmental Authority (whether or not having the force of law) made or issued after the
date of this Agreement does or shall have the effect, as a result of such Bank’s obligations under
this Agreement or under any Letter of Credit, of reducing the rate of return on such Bank’s or such
corporation’s capital to a level below that which such Bank or such corporation could have achieved
but for such change or compliance (taking into consideration such Bank’s or such corporation’s
policies with respect to capital adequacy) by an amount deemed by such Bank to be material, the
Borrower shall pay to the Administrative Agent for the account of such Bank, from time to time as
specified by such Bank in the manner set forth in

48

 

Section 4.8(b), additional amounts, computed by such Bank in accordance with Section 4.8(a), sufficient to compensate such Bank or such corporation
in the light of such circumstances, to the extent that such Bank reasonably determines such
reduction in rate of return is allocable to the existence of such Bank’s obligations hereunder.

     (c) The agreements contained in this Section 4.1 shall survive the termination of this
Agreement and the payment of all amounts payable hereunder; provided, however, that
in no event shall the Borrower be obligated to reimburse or compensate any Bank for amounts
contemplated by this Section 4.1 for any period prior to the date that is 90 days prior to the date
upon which such Bank requests in writing such reimbursement or compensation from the Borrower;
provided that, to the extent that the adoption of or any change in any law or regulation or
in the interpretation or application thereof gives rise to any amount(s) contemplated by this
Section 4.1 on a retroactive basis, then the 90-day period referred to in the preceding proviso
shall be extended to include the period of retroactive effect thereof.

     SECTION 4.2. Pro Rata Treatment and Payments and Computations. (a) Each Borrowing of
Loans by the Borrower from the Banks hereunder, each payment by the Borrower on account of any
commitment or other fee, any reduction of the Commitments of the Banks and any prepayment on
account of principal and interest on the Loans shall be made pro rata according to
the respective Revolving Percentages of the Banks.

     (b) The Borrower shall make each payment (including each prepayment) hereunder, whether on
account of principal, interest, fees or otherwise, without setoff or counterclaim, not later than
12:00 Noon (New York City time) on the day when due in Dollars to the Administrative Agent at the
Funding Office in immediately available funds, except payments to be made directly to the Swingline
Lender as expressly provided herein. The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal, interest, Letter of Credit fees or
commitment or other fees (to the extent received by the Administrative Agent) ratably to the Banks according to the amounts of their respective
Loans, L/C Obligations and Commitments in respect of which such payment is made, and like funds
relating to the payment of any other amount payable to any Bank (to the extent received by the
Administrative Agent) to such Bank, in each case to be applied in accordance with the terms of this
Agreement.

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

     (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Banks hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has made such payment in
full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon
such assumption, cause to be distributed to each Bank on such due date an amount equal to the
amount then due such Bank. If and to the extent the Borrower shall not have

49

 

so made such payment in full to the Administrative Agent, each Bank shall pay to the Administrative Agent on demand an
amount equal to the product of (i) the daily average Federal Funds Effective Rate during such
period, times (ii) the amount of such Bank’s Revolving Percentage of such payment, times (iii) a
fraction, the numerator of which is the number of days that elapse from and including the date such
amount is distributed to such Bank to the date on which such Bank’s Revolving Percentage of such
payment shall have become immediately available to the Administrative Agent and the denominator of
which is 360.

     (e) If any Bank shall fail to make any payment required to be made by it pursuant to Section
2.4(a), 2.5(a) or (e) or 9.7, then the Administrative Agent may, in its discretion and
notwithstanding any contrary provision hereof, (i) apply any amounts thereafter received by the
Administrative Agent for the account of such Bank for the benefit of the Administrative Agent, the
Swingline Lender or the Issuing Bank to satisfy such Bank’s obligations to it under such Section
until all such unsatisfied obligations are fully paid, and/or (ii) hold any such amounts in a
segregated account as cash collateral for, and application to, any future funding obligations of
such Bank under any such Section, in the case of each of clauses (i) and (ii) above, in any order
as determined by the Administrative Agent in its discretion.

     SECTION 4.3. Taxes. (a) Except as otherwise required by any requirement of law, any
and all payments by or on behalf of the Borrower hereunder or under any other Loan Document shall
be made free and clear of and without deduction or withholding for or on account of any and all
present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings, and
all interest, penalties and additions to tax with respect thereto, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority (“Taxes”), excluding, in the
case of each Bank, the Administrative Agent, any Issuing Bank or any other recipient of any payment
to be made by or on account of any obligation of the Borrower hereunder or under any other Loan
Document, (i) net income Taxes, branch profits Taxes and franchise Taxes imposed on it by any
jurisdiction under the laws of which such recipient is organized, or in which its principal office
is located (or, in the case of any Bank, in which its applicable lending office is located), or
imposed as a result of a present or former connection between it and the jurisdiction (or political
subdivision or taxing authority thereof or therein) imposing such Tax (other than a connection
arising solely from such recipient having executed, delivered or performed its obligations or
received a payment under, or enforced, this Agreement or any other Loan Document), (ii) in the case
of a Bank (other than an assignee pursuant to a request by the Borrower under Section 4.7(b)), any
U.S. Federal withholding Taxes resulting from any requirement of law in effect on the date such
Bank becomes a party to this Agreement (or designates a new lending office), except to the extent
that any such Bank (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from the Borrower with respect to
such Taxes pursuant to this Section 4.3(a), (iii) United States backup withholding Taxes, (iv)
Taxes attributable to its failure to comply with Section 4.3(e) or Section 4.3(f), and (v) any U.S.
withholding Taxes imposed under FATCA (all such non-excluded Taxes imposed on or with respect to
any payment made by or on account of any obligation of the Borrower under any Loan Document being
hereinafter referred to as

50

 

“Indemnified Taxes,” and all such excluded Taxes being hereinafter referred to as “Excluded Taxes”). If the Borrower shall be required by law to
deduct or withhold any Taxes from or in respect of any sum payable hereunder or under any other
Loan Document to any Bank or the Administrative Agent, (i) to the extent such Taxes are Indemnified
Taxes or Other Taxes, the sum payable by the Borrower shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section 4.3) the Bank or the Administrative Agent (as the case may be) receives an amount
equal to the sum it would have received had no such deductions for Indemnified Taxes or Other Taxes
been made, (ii) the Borrower shall make such deductions, and (iii) the Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law. Whenever
any Taxes or Other Taxes are payable by the Borrower pursuant to this Section 4.3, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for the account of the
relevant Bank or Administrative Agent, as the case may be, either (A) within thirty (30) days after
payment of any applicable tax, official tax receipts or notarized copies of such receipts
evidencing such payment or (B) a certificate executed by a Responsible Officer of the Borrower
confirming that such Taxes or Other Taxes have been paid, together with evidence of such payment.

     (b) In addition, the Borrower agrees to pay, in accordance with applicable law, any present or
future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies
that arise from any payment made hereunder or under any Note or from the execution, delivery,
registration or enforcement of or otherwise with respect to, this Agreement, any other Loan
Document, or the Loans and for which such Bank or the Administrative Agent (as the case may be) has
not been otherwise reimbursed by the Borrower under this Agreement (hereinafter referred to as
“Other Taxes”).

     (c) The Borrower will indemnify each Bank and the Administrative Agent for the full amount of
Indemnified Taxes or Other Taxes (including any Indemnified Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 4.3) paid by such Bank or the Administrative
Agent (as the case may be) and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority.

     (d) Each Bank shall indemnify the Administrative Agent for the full amount of any Indemnified
Taxes or Other Taxes that are attributable to such Bank and that are payable or paid by the
Administrative Agent, together with all reasonable costs and expenses arising therefrom or with
respect thereto, as determined by the Administrative Agent in good faith. A certificate as to the
amount of such payment or liability delivered to any Bank by the Administrative Agent shall be
conclusive absent manifest error.

     (e)

     (i) Each Bank (which, for purposes of this Section 4.3(e) and Section 4.3(f), shall
include any Issuing Bank) that is a “United States Person” as defined in Section 7701(a)(30)
of the Code shall deliver to the Borrower and the Administrative Agent on or before the date
on which it becomes a party to this Agreement two properly completed

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and duly executed copies of IRS Form W-9 (or any successor form) certifying that such Bank is exempt from U.S.
federal withholding tax.

     (ii) Each Bank (or Transferee, if applicable) that is not a U.S. Person as defined in
Section 7701(a)(30) of the Code (a “Non-U.S. Bank”) agrees that it will deliver to
the Borrower and the Administrative Agent (or, in the case of a Participant, to the Bank
from which the related participation shall have been purchased) (i) two duly completed and
properly executed copies of IRS Form W-8BEN, W-8ECI, W-8EXP or W-8IMY (together with any
applicable underlying IRS forms or other applicable documentation) or any successor
applicable form, as the case may be, (ii) in the case of a Non-U.S. Bank claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest,” a statement substantially in the form of Exhibit G
and the applicable IRS Form W-8, or any subsequent versions thereof or successors thereto,
properly completed and duly executed by such Non-U.S. Bank claiming complete exemption from,
or a reduced rate of, U.S. federal withholding tax on payments under this Agreement and the
other Loan Documents, or (iii) any other form prescribed by applicable requirements of U.S.
federal income tax law as a basis for claiming exemption from or a reduction in U.S. federal
withholding tax duly completed together with such supplementary documentation as may be
prescribed by applicable requirements of law to permit the Borrower and the Administrative
Agent to determine the withholding or deduction required to be made. Such forms shall be
delivered by each Non-U.S. Bank on or before the date which it becomes a party to this
Agreement (or, in the case of any Participant, on or before the date such Participant
purchases the related participation) and from time to time thereafter upon the request of
the Borrower or the Administrative Agent. In addition, each Non-U.S. Bank also agrees to
deliver to the Borrower and the Administrative Agent two further copies of the said Form
W-8BEN, W-8ECI, W-8EXP, or W-8IMY (together with
any applicable underlying IRS forms or other applicable documentation) or any successor
applicable form, as the case may be, on or before the date that any such form expires or
becomes obsolete or after the occurrence of any event requiring a change in the most recent
form or certification previously delivered by it to the Borrower. Each Non-U.S. Bank shall
promptly notify the Borrower and the Administrative Agent at any time it determines that it
is no longer in a position to provide any previously delivered certificate to the Borrower
(or any other form of certification adopted by the U.S. taxing authorities for such
purpose). Notwithstanding any other provision of this Section 4.3(e), a Non-U.S. Bank shall
not be required to deliver any form pursuant to this Section 4.3(e) that such Non-U.S. Bank
is not legally able to deliver.

     (iii) If a payment made to a Bank under any Loan Document would be subject to U.S.
Federal withholding Tax imposed by FATCA if such Bank were to fail to comply with the
applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Code, as applicable), such Bank shall deliver to the Borrower and the
Administrative Agent, at the time or times prescribed by law and at such time or times
reasonably requested by the Borrower or the Administrative Agent, such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the
Code) and such additional documentation reasonably requested by the Borrower or the
Administrative Agent as may be necessary for the Borrower or the

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Administrative Agent to
comply with its obligations under FATCA, to determine that such Bank has or has not complied
with such Bank’s obligations under FATCA or to determine the amount to deduct and withhold
from such payment. Solely for purposes of this Section 4.3(e), “FATCA” shall include any
amendments made to FATCA after the date of this Agreement.

     (f) Without limiting Section 4.3(e), a Bank that is entitled to an exemption from or reduction
of withholding tax under the law of the jurisdiction in which the Borrower is located, or any
treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed
by applicable law or reasonably requested by the Borrower or the Administrative Agent, such
properly completed and executed documentation prescribed by applicable law as will permit such
payments to be made without withholding or at a reduced rate if such Bank is legally entitled to
complete, execute and deliver such documentation; provided that a Bank shall not be
required to provide such documentation (other than such documentation set forth in Section 4.3(e))
if in such Bank’s reasonable judgment such completion, execution or submission would materially
prejudice the legal or commercial position of such Bank.

     (g) If the Administrative Agent or any Bank determines, in its sole discretion exercised in
good faith, that it has received a refund of those Taxes or Other Taxes as to which it has been
indemnified by the Borrower (including by the payment of additional amounts pursuant to this
Section 4.3), the Administrative Agent or such Bank shall within 20 days after such refund pay to
the Borrower the amount of such refund to the extent that the Borrower indemnified the
Administrative Agent or such Bank for such Taxes or Other Taxes pursuant to this Section 4.3, net
of any out-of-pocket costs of the Administrative Agent or such Bank and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that the Borrower, upon the request of the Administrative
Agent or such Bank, agrees to repay the amount paid over to the Borrower pursuant to this
Section 4.3(g) (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Bank in the event the Administrative Agent or such
Bank is required to repay such refund to such Governmental Authority. This paragraph shall not be
construed to require the Administrative Agent or any Bank to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the Borrower or any other
Person.

     (h) The agreements in this Section 4.3 shall survive the termination of this Agreement and the
payment of all amounts payable hereunder; provided, however, that (i) in no event
shall the Borrower be obligated to reimburse or compensate any Bank for amounts contemplated by
this Section 4.3 for any period before the date that is 120 days before the date upon which such
Bank requests in writing such reimbursement or compensation from the Borrower (other than any
amounts as to which the ultimate amount of the reimbursement due could not then be determined) and
(ii) nothing contained in this Section 4.3 shall require the Borrower to pay any amount to any Bank
or the Administrative Agent in addition to that for which it has already reimbursed any Bank or the
Administrative Agent under any other provision of this Agreement.

     SECTION 4.4. Sharing of Payments, Etc. If any Bank (a “Benefitted Bank”)
shall at any time receive any payment (other than pursuant to Section 2.7, 3.4, 3.7, 4.1 or 4.3) of
all or

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part of its Revolving Loans, Reimbursement Obligations or participations in Swingline Loans
owing to it or interest thereon, or receive any collateral in respect thereof (whether voluntarily
or involuntarily, by setoff, pursuant to events or proceedings of the nature referred to in Section
8.1(g) or 8.1(h), or otherwise), in a greater proportion than any such payment to or collateral
received by any other Bank, if any, in respect of such other Bank’s Loans, Reimbursement
Obligations owing to it, respectively, or interest thereon, such benefitted Bank shall purchase for
cash from the other Banks a participating interest in such portion of each such other Bank’s Loans
or Reimbursement Obligations owing to it, respectively, or shall provide such other Banks with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such
benefitted Bank to share the excess payment or benefits of such collateral or proceeds ratably with
each of the Banks; provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such benefitted Bank, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such recovery, but
without interest. The Borrower agrees that any Bank so purchasing a participation from another Bank
pursuant to this Section 4.4 may, to the fullest extent permitted by law, exercise all its rights
of payment (including the right of setoff) with respect to such participation as fully as if such
Bank were the direct creditor of the Borrower in the amount of such participation.

     SECTION 4.5. Optional Termination or Reduction of the Commitments. (a) Unless
previously terminated, the Commitments of the Banks to make Loans shall terminate on the
Termination Date.

     (b) The Borrower shall have the right, without penalty or premium, upon at least three (3)
Business Days’ irrevocable written notice to the Administrative Agent (which shall give prompt
notice to each Bank), to terminate in whole the Commitments or permanently, from time to time, to
reduce ratably in part the unused portion of the Commitments, provided that (i) each
partial reduction shall be in the aggregate principal amount of $5,000,000 or an integral multiple
of $1,000,000 in excess thereof, (ii) no such termination or reduction shall be permitted if, after
giving effect thereto and to any prepayments made under Section 4.6 by the Borrower on the
effective date thereof, the Total Outstanding Extensions of Credit then outstanding would exceed
the Total Commitments then in effect, and (iii) any notice of termination of the Commitments may
state that such notice is conditioned upon the effectiveness of other credit facilities or the
closing of one or more securities offerings, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified date) if such
condition is not satisfied.

     Each reduction of Commitments pursuant to this Section 4.5 shall be applied pro rata to the
Commitments of each Bank. If at any time, including after giving effect to any reduction of
Commitments pursuant to this Section 4.5, the Total Outstanding Extensions of Credit exceed the
Total Commitments, the Borrower shall be obligated, first, to prepay the Loans in the
amount of such excess, second, to cash collateralize Letters of Credit to the extent that
the aggregate amount of the L/C Obligations exceeds such Total Commitments after prepayment of all
Loans.

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     SECTION 4.6. Voluntary Prepayments. The Borrower may, upon written notice delivered
to the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline
Lender) (i) not later than 11:00 A.M. (New York City time) on the same Business Day, in the case of
a prepayment of ABR Revolving Loans, (ii) no later than 11:00 A.M. (New York City time) two (2)
Business Days before the date of prepayment (or such shorter or no notice as may be satisfactory to
the Administrative Agent), in the case of a prepayment of Eurodollar Rate Loans, and (iii) not
later than 12:00 Noon (New York City time) on the date of prepayment, in the case of a prepayment
of a Swingline Loan, stating the aggregate principal amount of the prepayment and the Loans to be
prepaid, prepay the outstanding principal amounts of such Loans comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to the date of such
prepayment on the principal amount prepaid to the extent required by Section 3.3; provided,
however, that losses incurred by any Bank under Section 3.7 shall be payable with respect
to each such prepayment in the manner set forth in Section 3.7. Any such notice provided pursuant
to this Section 4.6 shall be irrevocable; provided that, if a notice of prepayment is given
in connection with a conditional notice of termination of the Commitments as contemplated by
Section 4.5(b)(iii), then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 4.5(b)(iii). Partial prepayments pursuant to this Section 4.6
with respect to any Tranche of Eurodollar Rate Loans shall be in an aggregate principal amount
equal to the lesser of (a) $5,000,000 or an integral multiple of $1,000,000 in excess thereof and
(b) the aggregate principal amount of such Tranche of Eurodollar Rate Loans then outstanding, as
the case may be; provided that no partial prepayment of any Tranche of Eurodollar Rate
Loans may be made if, after giving effect thereto, Section 2.1(b) would be contravened. Partial
prepayments with respect to ABR Revolving Loans (other than Swingline
Loans) shall be made in an aggregate principal amount equal to the lesser of (i) $1,000,000 or
an integral multiple of $500,000 in excess thereof and (ii) the aggregate principal amount of ABR
Revolving Loans then outstanding, as the case may be.

     SECTION 4.7. Mitigation of Losses and Costs; Replacement of Banks. (a) Any Bank
claiming reimbursement from the Borrower under any of Sections 3.4, 3.7, 4.1 and 4.3 hereof shall
use reasonable efforts (including, if requested by the Borrower, reasonable efforts to designate a
different lending office of such Bank) to mitigate the amount of such losses, costs, expenses and
liabilities, if such efforts can be made and such mitigation can be accomplished without such Bank
suffering (i) any economic disadvantage for which such Bank does not receive full indemnity from
the Borrower under this Agreement or (ii) any legal or regulatory disadvantage.

     (b) If (i) any Bank requests compensation under Section 4.1, or if the Borrower is required to
pay any additional amount to any Bank or any Governmental Authority for the account of any Bank
pursuant to Section 4.3, (ii) any Bank becomes a Defaulting Bank or (iii) any Bank refuses to
consent to any proposed amendment, modification, waiver or consent with respect to any provision
hereof that requires the unanimous approval of all Banks, or the approval of each of the Banks
affected thereby (in each case in accordance with Section 10.1), and the consent of the Majority
Banks shall have been obtained with respect to such amendment, modification, waiver or consent,
then the Borrower may, at its sole expense and effort (including payment of any applicable
processing and recordation fees), upon notice to such Bank and the Administrative Agent, require
such Bank to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 10.6(c)), all its interests, rights and

55

 

obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Bank, if
a Bank accepts such assignment); provided that (A) the Borrower shall have received (I) the
prior written consent of the Administrative Agent with respect to any assignee that is not already
a Bank hereunder (and if a Commitment is being assigned, each Issuing Bank), which consent shall
not unreasonably be withheld, conditioned or delayed, (II) the consent of such assignee to the
assignment and (III) in the case of clause (b)(iii) above, the consent of such assignee to the
proposed amendment, modification, waiver or consent, (B) such Bank shall have received payment of
all amounts owing to such Bank hereunder and under any other Loan Document (including any amounts
arising under Section 3.7 as a consequence of such assignment), (C) in the case of any such
assignment resulting from a claim for compensation under Section 4.1 or payments required to be
made pursuant to Section 4.3, such assignment will result in a reduction in such compensation or
payments, (D) prior to any such assignment, such Bank shall have taken no action under Section
4.7(a) so as to eliminate the continued need for payment of amounts owing pursuant to Section 4.1
or Section 4.3 and (E) until such time as such assignment shall be consummated, the Borrower shall
pay all additional amounts (if any) required pursuant to Section 4.1 or Section 4.3, as the case
may be. A Bank shall not be required to make any such assignment and delegation if, prior thereto,
as a result of a waiver by such Bank or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     SECTION 4.8. Determination and Notice of Additional Costs and Other Amounts.
(a) In determining the amount of any claim for reimbursement or compensation under
Sections 3.4, 3.7 and 4.1, each Bank may use any reasonable averaging, attribution and allocation
methods consistent with such methods customarily employed by such Bank in similar situations.

     (b) Each Bank or, with respect to compensation claimed by it pursuant to Section 4.3, the
Administrative Agent, as the case may be, will (i) use its best efforts to notify the Borrower
through the Administrative Agent (in the case of each Bank) of any event occurring after the date
of this Agreement promptly after the occurrence thereof and (ii) notify the Borrower through the
Administrative Agent (in the case of each Bank) promptly after such Bank or the Administrative
Agent, as the case may be, becomes aware of any event occurring after the date of this Agreement,
in either case if such event (for purposes of this Section 4.8(b), a “Triggering Event”)
will entitle such Bank or the Administrative Agent, as the case may be, to compensation pursuant to
Section 3.4, 3.7, 4.1 or 4.3, as the case may be. Each such notification of a Triggering Event
shall be accompanied by a certificate of such Bank or the Administrative Agent, as the case may be,
setting forth the calculations and justification in reasonable detail such amount or amounts as
shall be necessary to compensate such Bank or the Administrative Agent, as the case may be, as
specified in Section 3.4, 3.7, 4.1 or 4.3, as the case may be, and certifying that such costs are
generally being charged by such Bank to other similarly situated borrowers under similar credit
facilities, which certificate shall be conclusive absent manifest error. The Borrower shall pay to
the Administrative Agent for the account of such Bank or to the Administrative Agent for its own
account, as the case may be, the amount shown as due on any such certificate within ten Business
Days after its receipt of the same.

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ARTICLE V

CONDITIONS OF LENDING

     SECTION 5.1. Closing Date. The obligations of the Banks to make Loans and of the
Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date, on or
before September 15, 2011, on which each of the following conditions is satisfied (or waived in
accordance with Section 10.1):

          (a) The Administrative Agent (or its counsel) shall have received this Agreement duly executed
by the Borrower and each other party hereto.

          (b) The Administrative Agent (or its counsel) shall have received a certificate dated as of
the Closing Date of the Secretary or an Assistant Secretary of the Borrower certifying (i) the
names and true signatures of the officers of the Borrower authorized to sign each Loan Document to
which the Borrower is a party and the notices and other documents to be delivered by the Borrower
pursuant to any such Loan Document; (ii) the bylaws and articles of incorporation of the Borrower
as in effect on the date of such certification; (iii) the resolutions of the Board of Directors of
the Borrower approving and authorizing the execution, delivery and performance by the Borrower of
each Loan Document to which it is a party and any Notes from time to time issued hereunder and
authorizing the borrowings and other transactions contemplated hereunder and (iv) that all material authorizations, approvals and consents by
any Governmental Authority or other Person necessary in connection with the execution, delivery and
performance of the Loan Documents and any other regulatory approvals in respect thereof required to
be obtained prior to the Closing Date, have been obtained and are in full force and effect.

          (c) The Administrative Agent shall have received an executed legal opinion, dated the Closing
Date, of (i) Baker Botts L.L.P., special counsel to the Borrower, and (ii) Christopher J. Arntzen,
Esq., vice president and deputy general counsel of the Borrower. Each such legal opinion shall
cover such matters incident to the transactions contemplated by the Loan Documents as the
Administrative Agent may reasonably require and shall otherwise be in form and substance reasonably
satisfactory to the Administrative Agent.

          (d) The Administrative Agent (or its counsel) shall have received certificates dated as of the
Closing Date (to the extent available, and if not so available, dated as of a recent date prior to
the Closing Date) of (i) the Secretary of State of the State of Texas as to the existence of the
Borrower and (ii) the Comptroller of Public Accounts of the State of Texas as to the good standing
of the Borrower.

          (e) The Administrative Agent shall have received evidence that (i) all principal, accrued
interest and fees, including any commitment fees, utilization fees and letter of credit fees,
payable under the Existing Credit Agreement as of the Closing Date shall have been paid in full and
(ii) the commitments under the Existing Credit Agreement shall have been terminated (which payment
and termination may be contemporaneous with the satisfaction of the conditions specified in this
Section 5.1 and the application of proceeds of any Borrowings to occur on the Closing Date).

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          (f) The effectiveness, substantially concurrent with the effectiveness of this Agreement, of
(i) the CEHE Credit Agreement and (ii) the CERC Credit Agreement.

          (g) All governmental and third-party approvals necessary in connection with the execution,
delivery and performance by the Borrower of the Loan Documents to be entered into on the Closing
Date shall have been obtained and be in full force and effect.

          (h) The Administrative Agent shall have received all financial statements of, and other
information with respect to, the Borrower and its Subsidiaries as the Administrative Agent shall
reasonably request. The Borrower’s financial statements as of and for the fiscal quarter ending
June 30, 2011 shall not reflect any material adverse change in the consolidated financial condition
of the Borrower and its Subsidiaries as reflected in the financial statements of the Borrower and
its Subsidiaries as of and for the fiscal quarter ending March 31, 2011.

          (i) The Banks shall have received detailed consolidated projections through the 2015 fiscal
year of the Borrower (including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of each such fiscal year, the related consolidated statements of
projected cash flow and projected income and a description of the underlying assumptions applicable
thereto) (it being understood that, to the extent such projections are
included in the Confidential Information Memorandum dated August 2011, this condition shall be
deemed to have been satisfied).

          (j) The Borrower shall have paid to the Administrative Agent, the Lead Arrangers and the Banks
all fees required to be paid to them by the Borrower on or before the Closing Date.

          (k) All corporate and other proceedings, and all documents, instruments and other legal
matters, in connection with the Facility shall be in form and substance reasonably satisfactory to
the Administrative Agent.

          The Administrative Agent shall notify the Borrower and the Banks of the Closing Date, and such
notice shall be conclusive and binding.

     SECTION 5.2. Conditions Precedent to Each Credit Event. The obligation of each Bank
to make a Loan on the occasion of any Borrowing, and of any Issuing Bank to issue, extend, modify
or increase any Letter of Credit, is subject to the satisfaction of the following conditions
precedent:

          (a) On or prior to the date of the making of such extension of credit, (i) in the case of a
Borrowing, the Administrative Agent shall have received a Notice of Borrowing as required by
Section 2.2, and (ii) in the case of the issuance, extension or increase of a Letter of Credit, the
applicable Issuing Bank and the Administrative Agent shall have received an Application or request
therefor as required by Section 2.5.

          (b) The representations and warranties of the Borrower contained in Section 6.1 of this
Agreement and in the other Loan Documents shall be true and correct in all material respects
(except to the extent that any representation and warranty is qualified by materiality in the text
thereof, in which case such representation and warranty shall be true and

58

 

correct in all respects) on and as of the date of such extension of credit (except for (i) those representations or
warranties or parts thereof that, by their terms, expressly relate solely to a specific date, in
which case such representations and warranties shall be true and
correct in all material respects as of such specific date and (ii) at any time after the Closing Date, the representations and
warranties contained in Sections 6.1(j) and (k)), before and after giving effect to such extension
of credit as though made on and as of such date.

          (c) At the time of and immediately after giving effect to such extension of credit, no Default
or Event of Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (b) and (c) of this Section.

     SECTION 5.3. Conditions Precedent to Each Increase or Extension of the Commitments.
Each increase of the Commitments pursuant to Section 2.6 and each extension of the
Commitments pursuant to Section 2.7 shall not become effective until the date on which each of the
following conditions is satisfied:

          (a) The representations and warranties of the Borrower contained in Section 6.1 of this
Agreement and in the other Loan Documents shall be true and correct in all material respects
(except to the extent that any representation and warranty is qualified by materiality in the text
thereof, in which case such representation and warranty shall be true and correct in all respects)
on and as of the date of such increase or extension of the Commitments (except for those
representations or warranties or parts thereof that, by their terms, expressly relate solely to a
specific date, in which case such representations and warranties shall be true and correct in all
material respects as of such specific date), before and after giving effect to such extension or
increase of the Commitments as though made on and as of such date.

          (b) At the time of and immediately after giving effect to such increase or extension of the
Commitments, no Default or Event of Default shall have occurred and be continuing.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

          SECTION 6.1. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

          (a) Organizational Status of the Borrower. The Borrower (i) is validly organized and
existing and in good standing under the laws of its jurisdiction of organization; (ii) is duly
authorized or qualified to do business in, and is in good standing in, each other jurisdiction in
which the conduct of its business or the ownership or leasing of its Property requires it to be so
authorized or qualified to do business, except where the failure to be so duly authorized or
qualified or in good standing, individually or in the aggregate, would not

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reasonably be expected to have a Material Adverse Effect, and (iii) has the corporate power and authority to conduct its
business, as presently conducted.

          (b) Organizational Status of Significant Subsidiaries of the Borrower. Each
Significant Subsidiary of the Borrower (i) is validly organized and existing and in good standing
under the laws of the jurisdiction of its organization and is duly authorized or qualified to do
business in, and is in good standing in, each other jurisdiction in which the conduct of its
business or the ownership or leasing of its Property requires it to be so authorized or qualified
to do business, except where the failure to be so validly organized and existing or duly authorized
or qualified or in good standing, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect and (ii) has the corporate, partnership or other
requisite power and authority to conduct its business, as presently conducted, except where the
failure to have such power and authority, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

          (c) Organizational Powers. The Borrower has the corporate or other requisite power to
execute, deliver and perform and comply with its obligations under this Agreement, any Notes and
the other Loan Documents to which it is a party. This Agreement and each other Loan Document to
which the Borrower is a party have been duly executed and delivered on behalf of the Borrower.

          (d) Authorization, No Conflict, Etc. The Borrowings by the Borrower contemplated by
this Agreement, the execution and delivery by the Borrower of this Agreement and the other Loan
Documents to which it is a party and the performance by the Borrower of its obligations hereunder
and thereunder have been duly authorized by all requisite corporate or other requisite action on
the part of the Borrower and do not and will not (i) violate any law or any order of any court or
other Governmental Authority to which the Borrower is subject, (ii) violate the articles of
incorporation or bylaws or other organizational documents (each as amended from time to time) of
the Borrower, (iii) violate or result in a default under any indenture, loan agreement or other
agreement to which the Borrower or any Restricted Subsidiary of the Borrower is a party or by which
the Borrower or any Restricted Subsidiary of the Borrower, or any of their respective Property, is
bound (except for such violations or defaults that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect) or (iv) result in or require the creation
or imposition of any material Lien upon any of the Properties of the Borrower or any Significant
Subsidiary not permitted under this Agreement.

          (e) Governmental Approvals and Consents. No authorization or approval or action by,
and no notice to or filing with, any Governmental Authority is required for the due execution,
delivery and performance by the Borrower of, or for the Borrowings under, this Agreement and the
other Loan Documents to which it is a party, except (i) those that have been obtained or made and
(ii) such matters relating to performance as would ordinarily be done in the ordinary course of
business after the Closing Date.

          (f) Obligations Binding. This Agreement and the other Loan Documents to which the
Borrower is a party constitute the legal, valid and binding obligations of the Borrower,
enforceable against the Borrower in accordance with their respective terms (assuming due and

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valid authorization, execution and delivery of this Agreement and such other Loan Documents by each party
other than the Borrower), except as such enforceability may be (i) limited by the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the enforcement of creditors’ rights generally and (ii) subject to the effect of general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

          (g) Use of Proceeds, Margin Stock. The proceeds of the Loans will be used by the
Borrower (i) to refinance its obligations under the Existing Facility, (ii) to support commercial
paper issued by the Borrower and (iii) for other general corporate purposes. Neither the Borrower
nor any Restricted Subsidiary of the Borrower is principally engaged in, or has as one of its
important activities, the business of extending credit for the purpose of purchasing or carrying
any Margin Stock, and no part of the proceeds of any Loan made to the Borrower will be used for any
purpose that would violate the provisions of the margin regulations of the Board.

          (h) Title to Properties. The issued and outstanding Capital Stock owned by the
Borrower of each of its Significant Subsidiaries, whether such stock is owned directly or
indirectly through one or more of its Subsidiaries, is owned free and clear of any Lien. In
addition, each of the Borrower and each Significant Subsidiary has good title to, or valid
leasehold interests in, all its real and personal property material to its business, except for
defects in title and exceptions to leasehold interests that either individually or in the aggregate
would not reasonably be expected to result in a Material Adverse Effect, and all such Properties
are free and clear of any Lien except Liens permitted under this Agreement.

          (i) Investment Company Act. Neither the Borrower nor any Restricted Subsidiary of the
Borrower is an “investment company” as defined in, or otherwise subject to regulation under, the
Investment Company Act of 1940, as amended.

          (j) Material Adverse Change. Since December 31, 2010, there has been no event,
development or circumstance that, as of the Closing Date, has had, or would reasonably be expected
to have, a Material Adverse Effect.

          (k) Litigation. As of the Closing Date, there is no litigation, action, suit,
investigation or other legal or governmental proceeding by or before any arbitrator or Governmental
Authority pending against or, to the best knowledge of the Borrower, threatened against the
Borrower or any of its Subsidiaries, at law or in equity, (i) relating to the transactions under
this Agreement or under any other Loan Document or (ii) as to which there is a reasonable
possibility of an adverse decision that would have a Material Adverse Effect.

          (l) ERISA. There is no event or events, individually or in the aggregate, that could
reasonably be expected to have a Material Adverse Effect, arising out of or in connection with (i)
any Reportable Event or “accumulated funding deficiency” (within the meaning of Section 412 of the
Code or Section 302 of ERISA) with respect to any Plan that has occurred during the five-year
period immediately preceding the date on which this representation is made or deemed made, (ii) any
failure of a Plan to comply with the applicable provisions of ERISA and the Code, (iii) any
termination of a Single Employer Plan, (iv) any complete or partial withdrawal by the Borrower or
any Commonly Controlled Entity from any Multiemployer Plan,

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(v) any Lien in favor of the PBGC or any Plan that has arisen during the five-year period referred to in clause (i) above or (vi) a
Multiemployer Plan being in Reorganization or being Insolvent.

          (m) Financial Statements. The consolidated financial statements of the Borrower as of
and for the fiscal quarter ended June 30, 2011 filed with the SEC with the Borrower’s 10-Q for the
period then ended, copies of which have been delivered to the Banks, present fairly in all material
respects the consolidated financial condition and results of operations of the Borrower, its
Consolidated Subsidiaries, the Securitization Subsidiaries and the Unrestricted Subsidiaries as of
such date and for the period then ended, in conformity with, as applicable, GAAP and, except as
otherwise stated therein, consistently applied (in the case of such unaudited statements, subject
to year-end adjustments and the exclusion of detailed footnotes).

          (n) Accuracy of Information. None of the documents or written information (excluding
estimates, financial projections and forecasts) furnished to the Banks by the Borrower
in connection with or pursuant to this Agreement or the other Loan Documents (collectively,
the “Information”), contained, as of the date such Information was furnished (or, if such
Information expressly related to a specific date, as of such specific date), any untrue statement
of a material fact or omitted to state, as of the date such Information was furnished (or, if such
Information expressly related to a specific date, as of such specific date), any material fact
(other than industry-wide risks normally associated with the types of businesses conducted by the
Borrower and its Subsidiaries) necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading, as a whole. The estimates,
financial projections and forecasts furnished to the Banks by the Borrower with respect to the
transactions contemplated under this Agreement were prepared in good faith and on the basis of
information and assumptions that the Borrower believed to be reasonable as of the date such
information was prepared (it being recognized by the Banks that such estimates, financial
projections and forecasts as they relate to future events are not to be viewed as fact and that
actual results during the period or periods covered by such estimates, financial projections and
forecasts may differ from the projected results set forth therein by a material amount).

          (o) No Violation. The Borrower is not in violation of any order, writ, injunction or
decree of any court or any order, regulation or demand of any Governmental Authority that,
individually or in the aggregate, reasonably could be expected to have a Material Adverse Effect.

          (p) Subsidiaries. Schedule 6.1(p) attached hereto sets forth each Significant
Subsidiary as of the date hereof. Except as disclosed on Schedule 6.1(p), as of the date
hereof the Borrower owns, directly or indirectly through one or more of its Subsidiaries, all of
the outstanding Capital Stock of each Significant Subsidiary, in each case free and clear of any
Liens not permitted under this Agreement.

          (q) Senior Indebtedness. The Indebtedness of the Borrower under this Agreement
constitutes “Senior Debt” of the Borrower under and as defined in the ZENS Indenture or “Senior
Debt” or a similar term under any indenture governing any Junior Subordinated Debt.

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          (r) Taxes. Each of the Borrower and its Subsidiaries has filed or caused to be filed
all Federal, state and all other material tax returns that are required to be filed by it and has
paid or caused to be paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its Property and all other taxes, fees or other charges
imposed on it or any of its Property by any Governmental Authority (other than any such taxes the
amount or validity of which are currently being contested in good faith by appropriate proceedings
and with respect to which reserves in conformity with GAAP have been provided on the books of the
Borrower or its Subsidiaries), except where the failure to do so could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; no tax Lien has been filed,
and to the knowledge of the Borrower, no claim is being asserted, with respect to any such tax, fee
or other charges (other than any Liens or claims that could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect).

ARTICLE VII

AFFIRMATIVE AND NEGATIVE COVENANTS

     SECTION 7.1. Affirmative CovenantsThe Borrower covenants that, so long as any amount
is owing to the Banks hereunder or under any other Loan Document to which it is a party (other than
indemnities and other contingent obligations not then due and payable and as to which no claim has
been made) or any Letter of Credit is outstanding under this Agreement or any Bank shall have any
Commitment outstanding under this Agreement:

          (a) Delivery of Financial Statements, Notices and Certificates. The Borrower shall
deliver to the Administrative Agent (for distribution to the Banks) the following:

     (i) as soon as practicable and in any event within 90 days after the end of each fiscal
year of the Borrower (beginning with the fiscal year ending December 31, 2011), a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries, Securitization
Subsidiaries and Unrestricted Subsidiaries as of the end of such fiscal year and the related
statements of consolidated income, retained earnings and cash flows prepared in conformity
with GAAP consistently applied, setting forth in comparative form the figures for the
previous fiscal year, together with a report thereon by independent certified public
accountants of nationally recognized standing selected by the Borrower (which requirement
may be satisfied by delivering the Borrower’s Annual Report on Form 10-K with respect to
such fiscal year as filed with the SEC);

     (ii) as soon as practicable and in any event within 55 days after the end of each of
the first three quarters of each fiscal year of the Borrower (beginning with the quarter
ending September 30, 2011), unaudited consolidated financial statements of the Borrower and
its Consolidated Subsidiaries, Securitization Subsidiaries and Unrestricted Subsidiaries
consisting of at least a consolidated balance sheet as of the end of such fiscal quarter and
the related statements of consolidated income, retained earnings and cash flows for such
fiscal quarter and for the period from the beginning of such fiscal year to the end of such
fiscal quarter (which requirement may be satisfied by delivering the Borrower’s Quarterly
Report on Form 10-Q with respect to such fiscal quarter as filed with the SEC); such
financial statements shall be accompanied by a certificate of a

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Responsible Officer of the Borrower to the effect that such unaudited financial statements present fairly in all
material respects the consolidated financial condition and results of operations of the
Borrower and its Consolidated Subsidiaries, Securitization Subsidiaries and Unrestricted
Subsidiaries as of such date and for the period then ending, and have been prepared in
conformity with GAAP in a manner consistent with the financial statements referred to in
paragraph (a)(i) above (subject to year-end adjustments and exclusion of detailed
footnotes);

     (iii) with each set of financial statements to be delivered pursuant to Sections
7.1(a)(i) and (ii) above, a certificate in a form reasonably satisfactory to the
Administrative Agent, signed by a Responsible Officer of the Borrower, (A) confirming
compliance with Section 7.2(a) and setting out in reasonable detail the calculations
necessary to demonstrate such compliance as at the date of the most recent balance sheet
included in such financial statements and (B) stating that no Default or Event of Default
has occurred and is continuing as of the date of such certificate or, if there is any
Default or Event of Default, specifying the details thereof and any action taken or proposed
to be taken with respect thereto;

     (iv) within ten days of the filing thereof, copies of all periodic reports (other than
(x) reports on Form 11-K or any successor form, (y) Current Reports on Form 8-K that contain
no information other than exhibits filed therewith and (z) reports on Form 10-Q or 10-K or
any successor forms) under the Exchange Act (in each case other than exhibits thereto and
documents incorporated by reference therein)) filed by the Borrower with the SEC;

     (v) promptly, and in any event within seven (7) Business Days after a Responsible
Officer of the Borrower becomes aware of the occurrence thereof, written notice of (A) any
Event of Default or any Default; (B)(I) the institution of any litigation, action, suit or
other legal or governmental proceeding involving the Borrower or any Restricted Subsidiary
of the Borrower as to which there is a reasonable possibility of an adverse decision that,
if adversely determined, would have a Material Adverse Effect, (II) any adverse final
determination in the True-Up Litigation that would have a material adverse effect on the
ability of the Borrower to perform its obligations under the Loan Documents on a timely
basis or (III) any other final adverse determination in any litigation, action, suit or
other legal or governmental proceeding involving the Borrower or any Significant Subsidiary
of the Borrower that would have a Material Adverse Effect; or (C) the existence of an event
or events, individually or in the aggregate, that could reasonably be expected to have a
Material Adverse Effect, arising out of or in connection with (I) any Reportable Event with
respect to any Plan, (II) the failure to make any required contribution to a Plan, (III) the
creation of any Lien in favor of the PBGC or a Plan, (IV) any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan or (V) the institution
of proceedings or the taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan;

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     (vi) with each delivery of annual financial statements pursuant to Section 7.1(a)(i), a
certificate signed by a Responsible Officer of the Borrower identifying those Subsidiaries
of the Borrower which, determined as of the date of such financial statements, are
Significant Subsidiaries; and

     (vii) promptly after any request therefor, such other information relating to the
Borrower or its business, properties, condition and operations as the Administrative Agent
(or any Bank through the Administrative Agent) may reasonably request.

Information required to be delivered pursuant to the foregoing Sections 7.1(a)(i), (ii), and (iv)
shall be deemed to have been delivered on the date on which the Borrower provides notice (including
notice by e-mail) to the Administrative Agent (which notice the Administrative Agent
will convey promptly to the Banks) that such information has been posted on the SEC website on the
Internet at sec.gov/edgar/searches.htm or at another website identified in such notice and
accessible by the Banks without charge; provided that (x) such notice may be included in a
certificate delivered pursuant to Section 7.1(a)(iii) and (y) if requested by any Bank, the
Borrower shall deliver paper copies of such information to the Administrative Agent, and the
Administrative Agent shall deliver paper copies of such information to such Bank.

          (b) Use of Proceeds. The Borrower will use the proceeds of the Loans only for
the purposes set forth in Section 6.1(g), and it will not use any Letter of Credit or the proceeds
of any Loan for any purpose that would violate the provisions of the margin regulations of the
Board. The Borrower will not, and will not permit any of its Subsidiaries to, engage principally,
or as one of its important activities, in the business of extending credit for the purpose of
purchasing or carrying, within the meaning of Regulation U, any Margin Stock. Letters of Credit
will be issued only to support the general corporate purposes of the Borrower and its Subsidiaries.

          (c) Existence; Laws. The Borrower will, and will cause each Significant Subsidiary
to, do or cause to be done all things necessary to preserve, renew and keep in full force and
effect its legal existence and all rights, licenses, permits and franchises; provided that
the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution otherwise
permitted under this Agreement; and provided further that neither the Borrower nor
any Significant Subsidiary shall be required to preserve or maintain any rights, licenses, permits
or franchises if the failure to maintain and preserve the same would not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect. The Borrower will, and
will cause each of its Significant Subsidiaries to, comply with all laws and regulations applicable
to it, except where the failure to do so, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

          (d) Maintenance of Properties. The Borrower will, and will cause each Significant
Subsidiary to, preserve and maintain all of its Property that is material to the conduct of the
business of the Borrower and its Subsidiaries, taken as a whole, provided, however,
that nothing in this Section 7.1(d) shall prevent the Borrower or any of its Significant
Subsidiaries from (i) selling, abandoning or otherwise disposing of any Properties (including the
Capital Stock of any Subsidiary of the Borrower that is not a Significant Subsidiary) if (x) the
retention of such Properties in the good faith judgment of the Borrower or such Significant
Subsidiary is

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inadvisable or unnecessary to the business of the Borrower and its Subsidiaries,
taken as a whole, or (y) the failure to preserve and maintain such Properties would not reasonably
be expected to have a Material Adverse Effect or (ii) engaging in any other transaction that is
expressly permitted by the terms of any other provision of this Agreement.

          (e) Maintenance of Business Line. The Borrower will maintain its fundamental business
of providing services and products in the energy market.

          (f) Books and Records; Access. The Borrower will, and will cause each Significant
Subsidiary to, keep proper books of record and account in which complete and accurate entries, in
all material respects, are made of its financial and business transactions to the extent required
by GAAP. The Borrower will, and will cause each of its Significant Subsidiaries
to, at any reasonable time and from time to time, permit up to six representatives of the
Banks designated by the Majority Banks, or representatives of the Administrative Agent, on not less
than five Business Days’ notice, to examine and make copies of and abstracts from the records and
books of account of, and visit the properties of, the Borrower and each Significant Subsidiary and
to discuss the general business affairs of the Borrower and each of its Significant Subsidiaries
with their respective officers and independent certified public accountants (provided that,
so long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall
have the opportunity to be present at any such discussion with such independent certified public
accountants); subject, however, in all cases to the imposition of such conditions as the Borrower
and each of its Significant Subsidiaries shall deem necessary based on reasonable considerations of
safety and security; provided, however, that neither the Borrower nor any of its
Significant Subsidiaries shall be required to disclose to any Agent, any Bank or any agents or
representatives thereof any information which is the subject of attorney-client privilege or
attorney work-product privilege properly asserted by the applicable Person to prevent the loss of
such privilege in connection with such information or which is prevented from disclosure pursuant
to a confidentiality agreement with third parties. Notwithstanding the foregoing, none of the
conditions precedent to the exercise of the right of access described in the preceding sentence
that relate to notice requirements or limitations on the Persons permitted to exercise such right
shall apply at any time when a Default or an Event of Default shall have occurred and be
continuing.

          (g) Insurance. The Borrower will, and will cause each Significant Subsidiary to,
maintain insurance with responsible and reputable insurance companies or associations, or to the
extent that the Borrower or such Significant Subsidiary deems it prudent to do so, through its own
program of self-insurance, in such amounts and covering such risks as is usually carried by
companies engaged in similar businesses, of comparable size and financial strength and with
comparable risks.

          (h) Credit Rating. The Borrower will deliver to the Administrative Agent notice of
any change by a Rating Agency in the Designated Rating assigned by such Rating Agency promptly upon
the effectiveness of such change.

     SECTION 7.2. Negative Covenants. The Borrower covenants that, so long as any amount
is owing to the Banks hereunder or under any other Loan Document to which it is a party (other than
indemnities and other contingent obligations not then due and payable and as to

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which no claim has been made) or any Letter of Credit is outstanding under this Agreement or any Bank shall have any
Commitment outstanding under this Agreement:

          (a) Financial Covenant. The Borrower will not permit, as of the last day of any
fiscal quarter, the ratio of Consolidated Indebtedness as of such date to Consolidated Adjusted
EBITDA for the period of four fiscal quarters ending on such date to exceed 5.00:1.00;
provided, however, during a period after the occurrence of a Storm Certificate
Effective Date until the applicable Other Covenant Trigger Date, the applicable ratio shall be
5.50:1.00.

          (b) Certain Liens. The Borrower will not, and will not permit any of its Significant
Subsidiaries to, pledge, mortgage, hypothecate or grant a Lien upon, or permit any mortgage,
pledge, security interest or other Lien upon, any Property of the Borrower or any Significant
Subsidiary of the Borrower; provided, however, that this restriction shall neither
apply to nor prevent the creation or existence of:

     (i) Permitted Liens;

     (ii) any Lien in existence on the date hereof; provided that (A) no such Lien
described in this clause (ii) encumbers any additional Property after the date hereof (other
than repairs, renewals, replacements, additions, accessions, improvements and betterments to
the Property originally subject to such Lien) and (ii) the principal amount of Indebtedness
of the Borrower and its Subsidiaries secured thereby is not increased after the date hereof
(except that, if such Indebtedness is refinanced, refunded, renewed or extended after the
Closing Date, the principal amount thereof may be increased by an amount necessary to pay
all accrued and unpaid interest on such Indebtedness being refinanced, refunded, renewed or
extended and any fees and expenses, including premiums, related to such refinancing,
refunding, renewal or replacement);

     (iii) Liens securing bonds issued after the date hereof pursuant to the Original
Mortgage (to the extent the proceeds thereof are used to replace, refund or refinance first
mortgage bonds outstanding on the date hereof) or the General Mortgage Indenture (or second
or subordinated, as the case may be, Liens in lieu thereof);

     (iv) Liens required to be granted pursuant to “equal and ratable” clauses existing on
the date hereof under Contractual Obligations of the Borrower and its Significant
Subsidiaries (and extensions and renewals thereof);

     (v) Liens arising in connection with the securitization of accounts receivable of CERC
and its Subsidiaries or any Securitization Subsidiary, in the case of CERC and its
Subsidiaries, to the extent affecting only the accounts receivable of CERC and its
Subsidiaries and assets customarily related thereto;

     (vi) Liens securing Indebtedness of CERC and/or its Subsidiaries; provided that
such Liens shall be limited to the Property of CERC and/or its Subsidiaries;

     (vii) Liens on fixed or capital assets and related inventory and intangible assets
acquired, constructed, improved, altered or repaired by the Borrower or any Significant
Subsidiary; provided that (i) such Liens secure Indebtedness otherwise permitted by this

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Agreement, (ii) such Liens and the Indebtedness secured thereby are incurred prior to
or within 365 days after such acquisition or the later of the completion of such
construction, improvement, alteration or repair or the date of commercial operation of the
assets constructed, improved, altered or repaired, (iii) the Indebtedness secured thereby
does not exceed the cost of acquiring, constructing, improving, altering or repairing such
fixed or capital assets, as the case may be, and (iv) such Lien shall not apply to any other
property or assets of the Borrower or of its Significant Subsidiaries (other than repairs,
renewals, replacements, additions, accessions, improvements and betterments thereto);

     (viii) Liens on Property and repairs, renewals, replacements, additions, accessions,
improvements and betterments thereto existing at the time such Property is acquired by the
Borrower or any Significant Subsidiary and not created in contemplation of such acquisition
(or on repairs, renewals, replacements, additions, accessions and betterments thereto), and
Liens on the Property of any Person at the time such Person becomes a Significant Subsidiary
of the Borrower and not created in contemplation of such Person becoming a Significant
Subsidiary of the Borrower (or on repairs, renewals, replacements, additions, accessions and
betterments thereto);

     (ix) rights reserved to or vested in any Governmental Authority by the terms of any
right, power, franchise, grant, license or permit, or by any Requirements of Law, to
terminate such right, power, franchise, grant, license or permit or to purchase, condemn,
expropriate or recapture or to designate a purchaser of any of the Property of the Borrower
or any of its Significant Subsidiaries;

     (x) rights reserved to or vested in (or exercised by) any Governmental Authority to
control, regulate or use any Property of a Person or its activities, including zoning,
planning and environmental laws and ordinances and municipal regulations;

     (xi) Liens on Property of the Borrower or any of its Significant Subsidiaries securing
non-recourse Indebtedness of the Borrower or any such Significant Subsidiary;

     (xii) Liens on the stock or assets of Securitization Subsidiaries;

     (xiii) any extension, renewal or refunding of any Lien permitted by clauses (i) through
(xii) above on the same Property previously subject thereto; provided that no
extension, renewal or refunding of any such Lien shall increase the principal amount of any
Indebtedness secured thereby immediately prior to such extension, renewal or refunding,
unless such Indebtedness is permitted under Section 7.2(a);

     (xiv) Liens on cash collateral to secure obligations of the Borrower and its
Significant Subsidiaries in respect of cash management arrangements with any Bank or
Affiliate thereof; and

     (xv) Liens not otherwise permitted by this Section 7.2(b) securing Indebtedness and
other obligations of the Borrower and its Significant Subsidiaries so long as the aggregate
outstanding principal amount of the Indebtedness and obligations secured thereby does not at
any time exceed at the time of incurrence of such Indebtedness or obligations (including any
such incurrence resulting from any extension, renewal or

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refunding of such Indebtedness or obligations), as to the Borrower and all of its Significant Subsidiaries, 12.5% of Net
Tangible Assets.

          (c) Consolidation, Merger or Disposal of Assets. The Borrower will not, and will not
permit any Significant Subsidiary to, (i) merge into or consolidate with any other Person; (ii)
liquidate, wind up or dissolve (or suffer any liquidation or dissolution); or (iii) sell, transfer,
lease or otherwise dispose of all or substantially all of its Properties to any Person;
provided, however, that (A) the Borrower may merge into, or consolidate with, any
Person if the Borrower is the surviving entity; (B) any Significant Subsidiary may consolidate with
or merge into (1) the Borrower if the Borrower is the surviving entity or (2) any other Subsidiary of the Borrower
if the surviving entity is such Significant Subsidiary or a Wholly-Owned Restricted Subsidiary; (C)
any Significant Subsidiary may consolidate with or merge into any Person other than the Borrower or
another Subsidiary of the Borrower if (1) such Significant Subsidiary is the surviving entity or
(2) such other Person is the surviving entity and becomes a Wholly-Owned Restricted Subsidiary
contemporaneously with such consolidation or merger; (D) any Significant Subsidiary may liquidate,
wind up or dissolve if the Properties of such Significant Subsidiary are conveyed, transferred or
distributed pursuant to such liquidation, winding up or dissolution to the Borrower or a
Wholly-Owned Restricted Subsidiary; (E) any Significant Subsidiary may sell, transfer, lease or
otherwise dispose of all or substantially all of its Properties to the Borrower, to another
Wholly-Owned Restricted Subsidiary or to a Person that becomes a Wholly-Owned Restricted Subsidiary
contemporaneously with such sale, transfer, lease or other disposition; (F) the Borrower and any
Significant Subsidiary may transfer assets in connection with the issuance of Securitization
Securities; and (G) the Borrower and any Significant Subsidiary may make Permitted MLP/JV Asset
Transfers; provided that (x) in each case, immediately before and after giving effect to
any such merger or consolidation, dissolution or liquidation, or sale, transfer, lease or other
disposition, no Default or Event of Default shall have occurred and be continuing and (y) in the
case of any transaction described in foregoing clause (A) or (G) (excluding, in the case of clause
(A), any transaction in which any Subsidiary of the Borrower merges into or consolidates with the
Borrower), after giving effect to such transaction, the Borrower shall be in pro forma compliance
with Section 7.2(a).

          (d) Takeover Bids. The Borrower will not use the proceeds of any Loan made to it to
participate in any unsolicited control bid for any other Person.

          (e) Sale of Significant Subsidiary Stock. The Borrower will not, and will not permit
any Significant Subsidiary to, sell, assign, transfer or otherwise dispose of any of the Capital
Stock of any Significant Subsidiary. Notwithstanding the foregoing provisions of Section 7.2(c) or
this Section 7.2(e), (x) the Borrower or any Significant Subsidiary may sell, assign, transfer or
otherwise dispose of (i) any of the Capital Stock of any Significant Subsidiary to the Borrower or
to a Wholly-Owned Subsidiary of the Borrower that constitutes a Significant Subsidiary after giving
effect to such transaction and (ii) any of the Capital Stock of any Subsidiary that is not a
Significant Subsidiary; (y) any Significant Subsidiary shall have the right to issue, sell, assign,
transfer or otherwise dispose of for value its preference or preferred stock in one or more bona
fide transactions to any Person; and (z) the Borrower and any Significant Subsidiary may make
Permitted MLP/JV Asset Transfers; provided that (A) immediately before and after giving
effect to any such sale, assignment, transfer or other disposition described in the foregoing
clauses (x), (y) and (z), no Default or Event of Default shall have occurred and be

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continuing and (B) in the case of any such Permitted MLP/JV Asset Transfer permitted under the foregoing clause
(z), after giving effect to such Permitted MLP/JV Asset Transfer, the Borrower shall be
in pro forma compliance with Section 7.2(a).

          (f) Agreements Restricting Dividends. The Borrower will not, and will not permit any
Significant Subsidiary to, enter into, incur or permit to exist any agreement or other consensual
arrangement that explicitly prohibits or restricts the payment by any Significant Subsidiary of
dividends or other distributions with respect to any shares of its Capital Stock; provided
that the foregoing shall not prohibit financial incurrence, maintenance and similar
covenants that indirectly have the practical effect of prohibiting or restricting the ability
of a Significant Subsidiary to make such payments or provisions that require that a certain amount
of capital be maintained, or prohibit the return of capital to shareholders above certain dollar
limits; provided further, that the foregoing shall not apply to (i) prohibitions
and restrictions imposed by law or by this Agreement, (ii) prohibitions and restrictions contained
in, or existing by reason of, any agreement or instrument existing on the Closing Date, (iii)
prohibitions and restrictions contained in, or existing by reason of, any agreement or instrument
relating to any Indebtedness of, or otherwise to, any Person at the time such Person first becomes
a Significant Subsidiary, so long as such prohibition or restriction was not created in
contemplation of such Person becoming a Significant Subsidiary, (iv) prohibitions or restrictions
contained in, or existing by reason of, any agreement or instrument effecting a renewal, extension,
refinancing, refund or replacement (or successive extensions, renewals, refinancings, refunds or
replacements) of Indebtedness or other obligations issued or outstanding under an agreement or
instrument referred to in clauses (ii) and (iii) above, so long as the prohibitions or restrictions
contained in any such renewal, extension, refinancing, refund or replacement agreement, taken as a
whole, are not materially more restrictive than the prohibitions and restrictions contained in the
original agreement or instrument, as determined in good faith by a Responsible Officer of the
Borrower, (v) any prohibitions or restrictions with respect to a Significant Subsidiary imposed
pursuant to an agreement that has been entered into in connection with a disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary, (vi) any prohibitions or
restrictions in respect of preferred or preference stock permitted to be issued by Significant
Subsidiaries under Section 7.2(e), (vii) restrictions in respect of Project Financings permitted
hereunder and (viii) restrictions contained in joint venture agreements, partnership agreements and
other similar agreements with respect to a joint ownership arrangement restricting the disposition
or distribution of assets or property of, or the activities of, such joint venture, partnership or
other joint ownership entity, or any of such entity’s subsidiaries, if such restrictions are not
applicable to the property or assets of any other entity.

          (g) Certain Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower
will not, and will not permit any of its Significant Subsidiaries to, (i) purchase or acquire
(including pursuant to any merger) any Capital Stock, evidence of indebtedness or other interest in
(including any option, warrant or other right to acquire any of the foregoing), make any loans or
advances to, Guarantee any obligations of, or make any investment in or capital contribution to,
any Unrestricted Subsidiary (any of the foregoing, an “Investment”) at any time, other than
(A) Investments in MLP Unrestricted Subsidiaries and Joint Venture Entities that are Unrestricted
Subsidiaries and (B) other Investments so long as the aggregate amount of net tangible assets of
all Unrestricted Subsidiaries (other than MLP Unrestricted Subsidiaries and Joint Venture Entities
that are Unrestricted Subsidiaries) at such time does not exceed, or would

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not exceed as a result of any such Investment, 12.5% of the Net Tangible Assets, or (ii) make Investments in
Project Financing Subsidiaries at any time if the aggregate amount of Investments at such time
exceeds, or would exceed as a result of any such Investments, $450,000,000.

          (h) Indebtedness of Holding Companies. The Borrower will not permit Utility Holding,
LLC and any other of its Subsidiaries that directly or indirectly own Capital Stock of CEHE or CERC
and which do not conduct, transact or otherwise engage in any business or operations other than
those incidental to their direct or indirect ownership of the Capital Stock of CEHE or CERC to
incur, create, assume or suffer to exist any Indebtedness for
Borrowed Money, except (i) Indebtedness for Borrowed Money owed to the Borrower or any
Subsidiary of the Borrower, (ii) Guarantees of Indebtedness for Borrowed Money owed by the Borrower
or any Subsidiary of the Borrower and (iii) Indebtedness for Borrowed Money owed by such Subsidiary
on the date hereof and any refinancings, refundings, renewals or extensions thereof (without any
increase in the principal amount thereof, other than an amount necessary to pay all accrued and
unpaid interest on the Indebtedness being refinanced, refunded, renewed or extended and any fees
and expenses, including premiums, related to such refinancing, refunding, renewal or replacement).

          (i) Revocation of Storm Certificate. The Borrower will not fail to revoke a Storm
Certificate, by delivery of written notice of such revocation to the Administrative Agent, promptly
upon acquiring knowledge that any statement contained in clause (ii) or (iii) of the definition of
Storm Certificate as set forth in an effective Storm Certificate is no longer applicable.

ARTICLE VIII

EVENTS OF DEFAULT

     SECTION 8.1. Events of Default. The occurrence of any of the following events shall
constitute an “Event of Default”:

          (a) Non-Payment of Principal, Interest and Commitment Fee. The Borrower fails to pay,
in the manner provided in this Agreement, (i) any principal or Reimbursement Obligations payable by
it hereunder when due or (ii) any interest payment, any Commitment Fee or any Letter of Credit fee
payable by it hereunder within five (5) Business Days after its due date; or

          (b) Non-Payment of Other Amounts. The Borrower fails to pay, in the manner provided
in this Agreement, any other amount (other than the amounts set forth in Section 8.1(a) above)
payable by it hereunder when due and such default shall continue unremedied for a period of at
least ten (10) Business Days after the Borrower’s receipt of notice from the Administrative Agent
of such default; or

          (c) Breach of Representation or Warranty. Any representation or warranty by the
Borrower in Section 6.1, in any other Loan Document or in any certificate, document or instrument
delivered by the Borrower under this Agreement shall have been incorrect in any material respect
when made or when deemed hereunder to have been made; or

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          (d) Breach of Certain Covenants. The Borrower fails to perform or comply with any one
or more of its obligations under Section 7.1(a)(v)(A) or 7.2; or

          (e) Breach of Other Obligations. The Borrower does not perform or comply with any one
or more of its other obligations under this Agreement (other than those set forth in Section
8.1(a), (b) or (d) above) or under any other Loan Document and such failure to perform or comply
shall not have been remedied within 30 days after the earlier of (i) notice thereof to
the Borrower from the Administrative Agent or the Majority Banks and (ii) discovery thereof
by a Responsible Officer of the Borrower; or

          (f) Other Indebtedness. (i) The Borrower or any Significant Subsidiary fails to pay
when due (either at stated maturity or by acceleration or otherwise, but subject to applicable
grace periods) any principal or interest in respect of any Indebtedness for Borrowed Money (other
than Indebtedness of the Borrower under this Agreement), Secured Indebtedness or Junior
Subordinated Debt if the aggregate principal amount of all such Indebtedness for which such failure
to pay shall have occurred and be continuing exceeds $75,000,000 or (ii) any default, event or
condition shall have occurred and be continuing with respect to any Indebtedness for Borrowed
Money, Secured Indebtedness or Junior Subordinated Debt of the Borrower or any Significant
Subsidiary (other than Indebtedness of the Borrower under this Agreement), the effect of which
default, event or condition is to cause, or to permit the holder thereof to cause, (A) such
Indebtedness to become due prior to its stated maturity (other than in respect of mandatory
prepayments required thereby) or (B) in the case of any Guarantee of Indebtedness for Borrowed
Money or Junior Subordinated Debt by the Borrower or any of its Significant Subsidiaries, the
primary obligation (as such term is defined in the definition of “Guarantee” in Section 1.1) to
which such Guarantee relates to become due prior to its stated maturity, if the aggregate amount of
all such Indebtedness or primary obligations with respect to which the Borrower or any of its
Significant Subsidiaries is liable (as the case may be) that is or could be caused to be due prior
to its stated maturity exceeds $75,000,000; or

          (g) Involuntary Bankruptcy, Etc. (i) There shall be commenced against the Borrower or
any Significant Subsidiary any case, proceeding or other action in any court of competent
jurisdiction (A) seeking a decree or order for relief in respect of the Borrower or any Significant
Subsidiary under any applicable domestic or foreign bankruptcy, insolvency, receivership or other
similar law, (B) seeking a decree or order adjudging the Borrower or any Significant Subsidiary a
bankrupt or insolvent, (C) except as permitted by Section 7.2(c)(ii), seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other similar relief
of or in respect of the Borrower or any Significant Subsidiary or their respective debts under any
applicable domestic or foreign bankruptcy, insolvency, receivership or other similar law or (D)
seeking the appointment of a custodian, receiver, conservator, liquidator, assignee, trustee,
sequestrator or other similar official of the Borrower or any Significant Subsidiary or of any
substantial part of their respective Properties, and, in the case of each of the foregoing clauses
(A), (B), (C) and (D), such case, proceeding or other action is not dismissed within 90 days; or
(ii) a decree, order or other judgment is entered in respect of any of the remedies, reliefs or
other matters for which any case, proceeding or other action referred to in clause (i) above is
commenced; or (iii) there shall be commenced against the Borrower or any Significant Subsidiary any
case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part

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of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged or stayed or bonded
pending appeal within 90 days from the entry thereof; or

          (h) Voluntary Bankruptcy, Etc. (i) The commencement by the Borrower or any
Significant Subsidiary of a voluntary case, proceeding or other action under any applicable
domestic or foreign bankruptcy, insolvency, receivership or other similar law (A) seeking to have
an order of relief entered with respect to it, (B) seeking to be adjudicated a bankrupt or
insolvent, (C) seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other similar relief with respect to it or its debts under any
applicable domestic or foreign bankruptcy, insolvency, receivership or other similar law or (D)
seeking the appointment of or the taking possession by a custodian, receiver, conservator,
liquidator, assignee, trustee, sequestrator or similar official of the Borrower or any Significant
Subsidiary of any substantial part of its Properties; or (ii) the making by the Borrower or any
Significant Subsidiary of a general assignment for the benefit of creditors; or (iii) the Borrower
or any Significant Subsidiary shall take any action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the acts described in clause (i) or (ii) above or in
Section 8.1(g); or (iv) the admission by the Borrower or any Significant Subsidiary in writing of
its inability to pay its debts generally as they become due or the failure by the Borrower or any
Significant Subsidiary generally to pay its debts as such debts become due; or

          (i) Judgments. One or more final judgments or decrees for the payment of money in an
aggregate amount in excess of $75,000,000 (to the extent not covered by insurance) shall be
rendered by one or more courts of competent jurisdiction against the Borrower or any Significant
Subsidiary, and the same shall remain undischarged for a period of 60 days during which the
execution thereon shall not effectively be stayed, released, bonded or vacated; or

          (j) ERISA Events. The existence of an event or events, individually or, in the
aggregate, that could reasonably be expected to have a Material Adverse Effect arising out of or in
connection with (i) any “prohibited transaction” (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan, (ii) the occurrence of any “accumulated funding deficiency”
(within the meaning of Section 412 of the Code or Section 302 of ERISA) by a Plan, whether or not
waived, or any Lien in favor of the PBGC or a Plan on the assets of the Borrower or any Commonly
Controlled Entity, (iii) the occurrence of a Reportable Event with respect to, or the commencement
of proceedings under Section 4042 of ERISA to have a trustee appointed, or the appointment of a
trustee under Section 4042 of ERISA, to administer or to terminate any Single Employer Plan, which
Reportable Event, commencement of proceedings or appointment of a trustee would reasonably be
expected to result in the termination of such Plan for purposes of Title IV of ERISA, (iv) the
termination of any Single Employer Plan for purposes of Title IV of ERISA or (v) withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan; or

          (k) Change in Control. A Change in Control shall have occurred.

          SECTION 8.2. Cancellation/Acceleration. If at any time and for any reason (whether
within or beyond the control of any party to this Agreement):

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     (a) either of the Events of Default specified in Section 8.1(g) or 8.1(h) occurs with respect
to the Borrower, then automatically:

     (i) the Commitments shall immediately be cancelled; and

     (ii) all Loans made hereunder, all amounts of L/C Obligations (whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required for draws thereunder), all unpaid accrued interest or fees and any
other sum payable under this Agreement or any other Loan Document shall become immediately
due and payable; or

     (b) any other Event of Default specified in Section 8.1 occurs, then, at any time thereafter
while such Event of Default is continuing, the Administrative Agent shall, upon the instruction of
the Majority Banks, by notice to the Borrower, declare that:

     (i) the Commitments shall immediately be cancelled; and/or

     (ii) either (A) all Loans made hereunder, all amounts of L/C Obligations (whether or
not the beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required for draws thereunder), all unpaid accrued interest or fees and any other
sum payable under this Agreement or any other Loan Document shall become immediately due and
payable or (B) all Loans made hereunder, all amounts of L/C Obligations (whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the documents
required for draws thereunder), all unpaid accrued interest or fees and any other sum
payable under this Agreement or any other Loan Document shall become due and payable at any
time thereafter immediately on demand by the Administrative Agent (acting on the
instructions of the Majority Banks).

          With respect to all Letters of Credit with respect to which presentment for honor shall not
have occurred at the time of an acceleration pursuant to the preceding paragraph or on the
Termination Date, the Borrower shall at such time deposit in a cash collateral account opened by
the Administrative Agent cash or cash equivalents in an amount equal to the aggregate then undrawn
and unexpired face amount of such Letters of Credit. The Borrower hereby grants to the
Administrative Agent, for the benefit of the applicable Issuing Bank and the L/C Participants, a
security interest in such cash collateral to secure all obligations of the Borrower under this
Agreement and the other Loan Documents. Interest shall accrue on amounts deposited in such account
for the benefit of the Borrower at a rate equal to the Federal Funds Effective Rate. Amounts held
in such cash collateral account shall be applied by the Administrative Agent to the payment of
drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of
Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the Notes. After all such Letters of Credit shall
have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and
all other obligations of the Borrower hereunder and under the Notes shall have been paid in full,
the balance, if any, in such cash collateral account shall be returned to the Borrower. The
Borrower shall execute and deliver to the Administrative Agent, for the account of each Issuing
Bank and the L/C Participants, such further documents and instruments as the

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Administrative Agent may reasonably request to evidence the creation and perfection of the within security interest in
such cash collateral account.

Except as expressly provided above in this Section 8.2, presentment, demand, protest, notice of
intent to accelerate, notice of acceleration and all other notices of any kind whatsoever are
hereby expressly waived by the Borrower.

ARTICLE IX

THE ADMINISTRATIVE AGENT

     SECTION 9.1. Appointment. Each Bank hereby irrevocably designates and appoints
JPMorgan Chase Bank, N.A. as the Administrative Agent of such Bank under this Agreement and the
other Loan Documents, and each such Bank irrevocably authorizes JPMorgan Chase Bank, N.A., as the
Administrative Agent for such Bank, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform such duties as are
expressly delegated to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding
any provision to the contrary elsewhere in this Agreement, (a) the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Bank, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent and (b) the other Agents and the Lead Arrangers
shall not have any duties or responsibilities hereunder, or any fiduciary relationship with any
Bank, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against the other
Agents or the Lead Arrangers.

     SECTION 9.2. Delegation of Duties. The Administrative Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

     SECTION 9.3. Exculpatory ProvisionsNeither any Agent nor any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or Affiliates shall be (a)
liable for any action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent that any of the
foregoing are found by a final and non-appealable decision of a court of competent jurisdiction to
have resulted from its or such Person’s own gross negligence or willful misconduct) or (b)
responsible in any manner to any of the Banks for any recitals, statements, representations or
warranties made by the Borrower or any officer thereof contained in this Agreement or any other
Loan Document or in any certificate, report, statement or other document referred to or provided
for in, or received by the Administrative Agent or any other Agent under or in connection with,
this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any Note or any other Loan Document or for any
failure of the Borrower to perform its obligations hereunder or thereunder. The Agents shall

75

 

not be under any obligation to any Bank to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or
to inspect the properties, books or records of the Borrower.

     SECTION 9.4. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument, note, writing,
resolution, notice, consent, certificate, affidavit, letter, facsimile, email, statement, order or
other document or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee of any Note or any loan
account in the Register as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent.
The Administrative Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such advice or concurrence
of the Majority Banks (or, if so specified by this Agreement, all Banks) as it deems appropriate or
it shall first be indemnified to its satisfaction by the Banks against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement and the other Loan Documents in accordance with a request of the Majority
Banks (or, if so specified by this Agreement, all Banks), and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Banks and all future holders of the
amounts owing hereunder.

     SECTION 9.5. Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Bank or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice of default”.
In the event that the Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Banks. The Administrative Agent shall take such action with respect to
such Default or Event of Default as shall be reasonably directed by the Majority Banks (or, if so
specified by this Agreement, all Banks); provided that unless and until the Administrative
Agent shall have received such directions, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Banks.

     SECTION 9.6. Non-Reliance on Administrative Agent, Lead Arrangers and Other Banks.
Each Bank expressly acknowledges that neither the Agents and the Lead Arrangers nor any of their
respective officers, directors, employees, agents, advisors, attorneys-in-fact or Affiliates have
made any representations or warranties to it and that no act by any Agent or any Lead Arranger
hereafter taken, including any review of the affairs of the Borrower, shall be deemed to constitute
any representation or warranty by any Agent or any Lead Arranger,
as applicable, to any Bank. Each Bank represents to the Agents and the Lead Arrangers that it
has, independently and without reliance upon any Agent, any Lead Arranger or any other Bank, and
based on such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition and
creditworthiness of the Borrower and made its own decision to make its Loans hereunder and

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enter into this Agreement. Each Bank also represents that it will, independently and without reliance
upon any Agent, any Lead Arranger or any other Bank, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and
decisions in taking or not taking action under this Agreement and the other Loan Documents, and to
make such investigation as it deems necessary to inform itself as to the business, operations,
property, financial and other condition and creditworthiness of the Borrower. Except for notices,
reports and other documents expressly required to be furnished to the Banks by the Administrative
Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any
Bank with any credit or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Borrower that may come into the
possession of the Administrative Agent or any of its officers, directors, employees, agents,
advisors, attorneys-in-fact or Affiliates.

     SECTION 9.7. Indemnification. The Banks agree to indemnify each Agent, each Lead
Arranger and their respective officers, directors, employees, partners, affiliates, agents,
advisors, and controlling persons (each, an “Agent Indemnitee”) (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective applicable Revolving Percentages in effect on the date on which
indemnification is sought under this Section 9.7 (or, if indemnification is sought after the date
upon which the Commitments shall have terminated and the Loans shall have been paid in full,
ratably in accordance with such applicable Revolving Percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time
(including at any time following the payment of all amounts owing hereunder and the termination of
the Commitments) be imposed on, incurred by or asserted against such Agent Indemnitee in any way
relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or
any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or any action taken or omitted by such Agent Indemnitee under or in connection
with any of the foregoing; provided that no Bank shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements that are found to by a final and non-appealable decision of a
court of competent jurisdiction to have resulted from such Agent Indemnitee’s gross negligence or
willful misconduct. The agreements in this Section 9.7 shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

     SECTION 9.8. Agent in Its Individual Capacity. Each Agent and its Affiliates may make
loans to, accept deposits from and generally engage in any kind of business with the Borrower as
though such Agent were not an Agent hereunder and under the other Loan Documents. With respect to
its Loans made or renewed by it, any Letter of Credit issued or participated in by it and its Commitment
hereunder, each Agent shall have the same rights and powers under this Agreement and the other Loan
Documents as any Bank and may exercise the same as though it were not an Agent, and the terms
“Bank” and “Banks” shall include the each Agent in its individual capacity.

     SECTION 9.9. Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Banks and the Borrower. If the

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Administrative Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Majority Banks shall appoint from among the Banks a successor agent for the Banks, which
successor agent shall (unless an Event of Default under Sections 8.1(a), (g) or (h) with respect to
the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which
approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall
succeed to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and approval, and the former
Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of any amounts payable hereunder. If a successor
Administrative Agent shall not have been so appointed within 15 days after the resigning
Administrative Agent gives notice of its resignation, the resigning Administrative Agent may then
appoint a successor Administrative Agent who shall be a financial institution engaged or licensed
to conduct banking business under the laws of the United States with an office in the United States
and that has total assets in excess of $500,000,000 and who shall serve as Administrative Agent
until such time, if any, as an Administrative Agent shall have been appointed by the Majority Banks
(with the consent of the Borrower to the extent required above) as provided above. After any
Administrative Agent’s resignation as Administrative Agent, the provisions of this Article IX and
of Section 10.5 shall continue to inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement and the other Loan Documents.

          SECTION 9.10. Co-Syndication Agents, Co-Documentation Agents, Lead Arrangers and Global
Coordinators. Notwithstanding anything to the contrary contained herein, no Bank identified as
a “Co-Syndication Agent”, “Co-Documentation Agent”, “Lead Arranger” or “Global Coordinator” shall
have the right, power, obligation, liability, responsibility or duty under this Agreement or any
other Loan Document other than those applicable to all Banks as such. Without limiting the
foregoing, none of the Banks so identified shall have or be deemed to have any fiduciary
relationship with any Bank. Each Bank acknowledges that it has not relied, and will not rely, on
any of the Banks so identified in deciding to enter into this Agreement or not taking action
hereunder.

ARTICLE X

MISCELLANEOUS

          SECTION 10.1. Amendments and Waivers. Neither this Agreement nor any other Loan
Document, nor any provision hereof or thereof, may be waived, amended, supplemented or modified
except pursuant to an instrument or instruments in writing entered into by the Borrower and the
Majority Banks or by the Borrower and the Administrative Agent with the consent of the Majority
Banks; provided that the Borrower, the Administrative Agent and the Banks providing any
Commitment Increase may enter into any amendment necessary to implement the terms of such
Commitment Increase in accordance with the terms of this Agreement without the consent of any other
Bank; provided further that no such waiver, amendment or modification shall:

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     (i) increase the amount or extend the expiration date of any Bank’s Commitment (except
in the manner set forth in Section 2.7) without the consent of such Bank;

     (ii) reduce the principal amount of any Loan, or extend the scheduled date of maturity
of any Loan (except in the manner set forth in Section 2.7), or reduce the stated rate of
any interest or fee payable hereunder or extend the scheduled date of any payment thereof,
in each case without the consent of each Bank directly affected thereby;

     (iii) amend, modify or waive any provision of this Section or of Section 4.2 in a
manner that would alter the pro rata sharing of payments required thereby, or reduce the
percentage specified in the definition of Majority Banks, or consent to the assignment or
transfer by the Borrower of any of its respective rights and obligations under this
Agreement and the other Loan Documents, in each case without the written consent of all the
Banks;

     (iv) amend, modify or waive any provision of Article IX without the written consent of
the Administrative Agent at the time;

     (v) amend, modify or waive any provision of Section 2.8 without the written consent of
the Administrative Agent, the Swingline Lender and each Issuing Bank;

     (vi) amend, modify or waive any provision of Section 2.5 in a manner that adversely
affects any Issuing Bank without the written consent of such Issuing Bank; or

     (vii) amend, modify or waive any provision of Section 2.4 in a manner that adversely
affects the Swingline Lender without the written consent of the Swingline Lender.

          Any such waiver, amendment, supplement or modification shall apply equally to each of the
Banks and shall be binding upon the Borrower, the Banks, the Issuing Banks, the Swingline Lender,
the Administrative Agent and all future holders of the amounts payable hereunder. In the case of
any waiver (to the extent specified therein), the Borrower, the Banks,
the Issuing Banks, the Swingline Lender and the Administrative Agent shall be restored to
their former position and rights hereunder and under any other Loan Documents, and any Default or
Event of Default waived shall be deemed to be cured and not continuing, but no such waiver shall
extend to any subsequent or other Default or Event of Default, or impair any right consequent
thereon.

     SECTION 10.2. Notices. (a) Unless otherwise expressly provided herein, all notices,
requests and demands to or upon the respective parties hereto shall be in writing (including by
facsimile followed by any original sent by mail or delivery), and, shall be deemed to have been
duly given or made when delivered by hand, or three days after being deposited in the mail, postage
prepaid, or, in the case of facsimile notice, when received, addressed as follows in the case of
the Borrower and the Administrative Agent, and as set forth in Schedule 1.1(A) in the case
of the other parties hereto, or to such other address as may be hereafter notified by the
respective parties hereto pursuant to paragraph (c) below and any future holders of the amounts
payable hereunder:

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	Borrower:

	 	1111 Louisiana
	 

	 	Houston, Texas 77002
	Attention:

	 	Linda Geiger
	 

	 	Assistant Treasurer
	Facsimile:

	 	(713) 207-3301
	 
	 	 
	With a copy to:

	 	Marc Kilbride
	 

	 	Vice President and Treasurer
	Facsimile:

	 	(713) 207-3301
	 
	 	 
	Administrative

	 	JPMorgan Chase Bank, N.A. Loan and Agency Services
	Agent:

	 	Group
	 

	 	1111 Fannin Street, 10th Floor
	 

	 	Houston, Texas 77002
	Attention:

	 	Kimberly Brown
	Facsimile:

	 	(713) 427-6307
	 
	 	 
	With a copy to:

	 	JPMorgan Chase Bank, N.A.
	 

	 	383 Madison Avenue, 24th Floor
	 

	 	New York, New York 10179
	Attention:

	 	Bridget Killackey
	Facsimile:

	 	(212) 270-3089
	 
	 	 
	Swingline

	 	JPMorgan Chase Bank, N.A. Loan and Agency Services
	Lender:

	 	Group
	 

	 	1111 Fannin Street, 10th Floor
	 

	 	Houston, Texas 77002
	Attention:

	 	Kimberly Brown
	Facsimile:

	 	(713) 427-6307
	 
	 	 
	With a copy to:

	 	JPMorgan Chase Bank, N.A.
	 

	 	383 Madison Avenue, 24th Floor
	 

	 	New York, New York 10179
	Attention:

	 	Bridget Killackey
	Facsimile:

	 	(212) 270-3089

provided that any notice, request or demand to or upon the Administrative Agent or the
Banks shall not be effective until received during such recipient’s normal business hours.

     (b) The Borrower hereby acknowledges that (i) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to
the Borrower or its securities) (each, a “Public Lender”) and (ii) the Administrative Agent
will make available to the Lenders certain notices, requests, financial statements, financial and
other reports, certificates and other information materials, but excluding any such communication
that initiates or responds to the legal process (all such non-excluded information being referred
to herein collectively as the “Communications”) on IntraLinks or

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another relevant website (whether a commercial, third-party website or whether sponsored by the Administrative Agent) (the
“Platform”). The Borrower hereby agrees that all Communications that are to be made
available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,
shall mean that the word “PUBLIC” shall appear prominently on the first page thereof, (ii) by
marking Communications “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative
Agent, the Issuing Banks and the Lenders to treat such Communications as not containing any
material non-public information with respect to the Borrower or its securities for purposes of
United States Federal and state securities laws, it being understood that certain of such
Communications may be subject to the confidentiality requirements hereof, (iii) all Communications
marked “PUBLIC” are permitted to be made available through a portion of the Platform designated
“Public Investor,” and (iv) the Administrative Agent shall be entitled to treat any Communications
that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.” Notwithstanding the foregoing, (A) the Borrower shall be under no
obligation to mark any Communications “PUBLIC,” and each Public Lender hereby waives its right to
receive any Communications that are not marked “PUBLIC”; and (B) the Administrative Agent shall
treat Communications that are deemed to have been delivered based on notice pursuant to the last
sentence of Section 7.1(a) as “PUBLIC.”

     (c) The Administrative Agent or the Borrower may, in its discretion, agree to accept notices
and other communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or circumstances.

     (d) Any party hereto may change its address, facsimile number or electronic mail address for
notices and other communications hereunder by notice to the other parties hereto.

     SECTION 10.3. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Bank, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     SECTION 10.4. Survival of Representations and Warranties. All representations and
warranties made hereunder and in any document, certificate or statement delivered pursuant hereto
or in connection herewith shall survive the execution and delivery of this Agreement.

     SECTION 10.5. Payment of Expenses; Indemnity. (a) The Borrower agrees (i) to pay all
reasonable out-of-pocket expenses of the Global Coordinators associated with the syndication of the
Facility, (ii) to pay or reimburse the Administrative Agent for all its reasonable out-of-pocket
costs and expenses incurred in connection with the preparation, negotiation and execution and
delivery of, and any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and thereby, including the
reasonable fees and disbursements of Simpson Thacher & Bartlett LLP, counsel to the Administrative
Agent (but excluding the fees or expenses of any other counsel), (iii) to pay

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or reimburse the Administrative Agent for all its costs and expenses incurred in connection with the enforcement or
preservation of its rights under this Agreement, the other Loan Documents and any other documents
prepared in connection herewith or therewith, including the reasonable fees and disbursements of
the special counsel to the Administrative Agent, (iv) to pay or reimburse each Bank for all its
costs and expenses incurred in connection with the enforcement, or at any time after the occurrence
and during the continuance of a Default or an Event of Default, the preservation, of its rights
under this Agreement, the other Loan Documents and any other documents prepared in connection
herewith or therewith, including (A) the reasonable fees and disbursements of counsel to such Bank
and (B) other out-of-pocket expenses incurred during any workout, restructuring or negotiations in
respect of such Loans or Letters of Credit, (v) without duplication of any other provision
contained in this Agreement or any Notes, to pay, indemnify, and hold each Bank and the
Administrative Agent harmless from, any and all recording and filing fees (for which each Bank has
not been otherwise reimbursed by the Borrower under this Agreement), if any, that may be payable or
determined to be payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan
Documents and any other documents prepared in connection herewith or therewith, and (vi) without
duplication of any other provision contained in this Agreement or any Notes, to pay, indemnify and
hold the Administrative Agent, each Global Coordinator, each Lead Arranger, each Bank, each Issuing
Bank, each Swingline Lender and each Agent together with their respective directors, officers,
employees, agents, trustees, advisors and Affiliates (collectively, the “Indemnified
Persons”), harmless from and against, any and all losses, claims, damages and liabilities (and
shall reimburse each Indemnified Person upon demand for any reasonable legal or other expenses
incurred by such Indemnified Person in connection with investigating or defending any of the
foregoing), incurred by any Indemnified Person arising out of, in connection with, or as a result of the execution,
delivery, enforcement, performance and administration of this Agreement and the other Loan
Documents, the transactions contemplated by this Agreement and the other Loan Documents, or the
use, or proposed use, of proceeds of the Loans (all the foregoing in this clause (vi),
collectively, the “Indemnified Liabilities”); provided that the Borrower shall have
no obligation hereunder to an Indemnified Person with respect to Indemnified Liabilities arising
from or in connection with (A) the gross negligence or willful misconduct of such Indemnified
Person or (B) the material breach by such Indemnified Person of the express terms of this
Agreement, in the case of each of the foregoing clauses (A) and (B) as determined by a final,
non-appealable judgment of a court of competent jurisdiction, AND PROVIDED FURTHER THAT, SUBJECT TO
THE LIMITATIONS DESCRIBED HEREIN, IT IS THE INTENTION OF THE BORROWER TO INDEMNIFY THE INDEMNIFIED
PERSONS AGAINST THE CONSEQUENCES OF THEIR OWN NEGLIGENCE.

     (b) Each party hereto hereby waives, to the maximum extent permitted by applicable law, any
right it may have to claim or recover from any other party hereto any special, indirect, punitive
or consequential damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of the execution, delivery, enforcement, performance and administration of
this Agreement and the other Loan Documents, the transactions contemplated by this Agreement and
the other Loan Documents, or the use, or proposed use, of proceeds of the Loans; provided
that nothing contained in this paragraph (b) shall limit the Borrower’s indemnification provisions
contained in paragraph (a) above.

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     (c) In the case of an investigation, litigation or other proceeding to which the indemnity in
this Section 10.5 applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by the Borrower, any of the Borrower’s directors, security
holders, affiliates, creditors, an Indemnified Person or any other Person, whether or not an
Indemnified Person is otherwise a party to this Agreement.

     (d) The agreements in this Section 10.5 shall survive repayment of the Loans and all other
amounts payable hereunder and termination of this Agreement.

     SECTION 10.6. Effectiveness, Successors and Assigns; Participations; Assignments. (a)
This Agreement shall become effective on the date hereof and thereafter shall be binding upon and
inure to the benefit of the Borrower, the Banks, each Issuing Bank, the Administrative Agent, all
future holders of the Loans and their respective successors and assigns, except that the Borrower
may not assign or transfer any of its rights or obligations under this Agreement without the prior
written consent of each Bank.

     (b) Any Bank may, without the consent of the Borrower or the Administrative Agent, in the
ordinary course of its business and in accordance with applicable law, at any time sell to one or
more banks or other financial institutions or Bank Affiliates (a “Participant”)
participating interests in any Loan owing to such Bank, any Note held by such Bank, any Commitment
of such Bank or any other interest of such Bank hereunder and under the other Loan Documents. In
the event of any such sale by a Bank of a participating interest to a Participant, such Bank’s
obligations under this Agreement to the other parties to this Agreement shall remain unchanged,
such Bank shall remain solely responsible for the performance thereof, such Bank shall remain
the holder of any such Loan and Commitment or other interest for all purposes under this Agreement
and the other Loan Documents, the Borrower and the Administrative Agent shall continue to deal
solely and directly with such Bank in connection with such Bank’s rights and obligations under this
Agreement and the other Loan Documents and, except with respect to the matters set forth in Section
10.1, the amendment of which requires the consent of all of the Banks, the participation agreement
between the selling Bank and the Participant may not restrict such Bank’s voting rights hereunder.
The Borrower agrees that each Participant shall be entitled to the benefits of Sections 4.1 and 4.3
(subject to the requirements and limitations therein, including the requirements under Section
4.3(e) and Section 4.3(f) (it being understood that the documentation required under Section 4.3(e)
and Section 4.3(f) shall be delivered to the participating Bank)) to the same extent as if it were
a Bank and had acquired its interest by assignment pursuant to paragraph (c) of this Section;
provided that such Participant (i) agrees to be subject to the provisions of Sections 4.1
and 4.3 as if it were an assignee under paragraph (c) of this Section and (ii) shall not be
entitled to receive any greater payment under Sections 4.1 or 4.3, with respect to any
participation, than its participating Bank would have been entitled to receive, except to the
extent such entitlement to receive a greater payment results from an adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or compliance by any Bank
with any request or directive (whether or not having the force of law) from any central bank or
other Governmental Authority made subsequent to the date hereof that occurs after the Participant
acquired the applicable participation. The Borrower further agrees that each Participant, to the
extent provided in its participation, shall be entitled to the benefits of Sections 3.4 and 3.7
with respect to its participation in the Commitments and the Loans outstanding from time to time;
provided that (i) no Participant shall be entitled to receive

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any greater amount pursuant to such Sections than the selling Bank would have been entitled to receive in respect of the amount
of the participation sold by such selling Bank to such Participant had no such sale occurred and
(ii) each such sale of participating interests shall be to a “qualified purchaser”, as such term is
defined under the Investment Company Act of 1940, as amended. Except as expressly provided in this
Section 10.6(b), no Participant shall be a third-party beneficiary of or have any rights under this
Agreement or under any of the other Loan Documents. Each Bank that sells a participation, acting
solely for this purpose as an agent of the Borrower, shall maintain a register on which it enters
the name and address of each Participant and the principal amounts (and stated interest) of each
Participant’s interest in the Loans or other obligations under this Agreement (the “Participant
Register”); provided that no Bank shall have any obligation to disclose all or any
portion of the Participant Register to any Person (including the identity of any Participant or any
information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or
its other obligations under any Loan Document) except to the extent that such disclosure is
necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in
registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in
the Participant Register shall be conclusive, and such Bank, each of the Borrower or any of its
Subsidiaries that is a party to any Loan Document, and the Administrative Agent shall treat each
person whose name is recorded in the Participant Register pursuant to the terms hereof as the owner
of such participation for all purposes of this Agreement, notwithstanding notice to the contrary.

     (c) Except as set forth below, the Banks shall be permitted to assign all or a portion of
their Loans and Commitments to one or more financial institutions (“Purchasing Banks”) with
the consent, not to be unreasonably withheld, of (a) the Borrower (provided that the Borrower
shall be deemed to have consented to such assignment unless it shall have notified the
Administrative Agent of its refusal to give such consent within 10 Business Days following the
Borrower’s receipt from the transferor Bank of a fully-completed Assignment and Acceptance (as
defined below) with respect to such assignment, delivered in accordance with Section 10.2), unless
(i) the Purchasing Bank is a Bank or a Bank Affiliate or (ii) an Event of Default has occurred and
is continuing, (b) the Administrative Agent, unless the assignment is from a Bank to its Bank
Affiliate, and (c) each Issuing Bank, unless the assignment is from a Bank to its Bank Affiliate,
pursuant to an Assignment and Acceptance, substantially in the form of Exhibit C (an
“Assignment and Acceptance”), executed by such Purchasing Bank and such transferor Bank
(and by the Borrower, the Administrative Agent and each Issuing Bank, as applicable) and delivered
to the Administrative Agent for its acceptance and recording in the Register; provided that
(i) such Purchasing Bank is a “qualified purchaser” as defined under the Investment Company Act of
1940, as amended, (ii) each such sale shall be of a uniform, and not a varying, percentage of all
rights and obligations under and in respect of the Commitment of such Bank, (iii) each such sale
shall be in an aggregate amount of not less than $5,000,000 (or such lesser amount representing the
entire Commitment of such transferor Bank) if such sale is not to an existing Bank and (iv) after
giving effect to such sale, the transferor Bank shall (to the extent that it continues to have any
Commitment hereunder) have a Commitment of not less than $5,000,000, provided that such
amounts shall be aggregated in respect of each Bank and its Bank Affiliates, if any. Upon such
execution, delivery, acceptance and recording, from and after the effective date determined
pursuant to such Assignment and Acceptance (the “Transfer Effective Date”), (i) the
Purchasing Bank thereunder shall be a party hereto and, to the extent provided in such Assignment
and Acceptance, have the rights and obligations of a Bank hereunder with the

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Commitments as set forth therein and (ii) the transferor Bank thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case
of an Assignment and Acceptance covering all or the remaining portion of a transferor Bank’s rights
and obligations under this Agreement, such transferor Bank shall cease to be a party hereto). Such
Assignment and Acceptance shall be deemed to amend this Agreement to the extent, and only to the
extent, necessary to reflect the addition of such Purchasing Bank and the resulting adjustment of
Revolving Percentages arising from the purchase by such Purchasing Bank of all or a portion of the
rights and obligations of such transferor Bank under this Agreement. On or prior to the Transfer
Effective Date determined pursuant to such Assignment and Acceptance, (i) appropriate entries shall
be made in the accounts of the transferor Bank and the Register evidencing such assignment and
releasing the Borrower from any and all obligations to the transferor Bank in respect of the
assigned Loan or Loans and (ii) appropriate entries evidencing the assigned Loan or Loans shall be
made in the accounts of the Purchasing Bank and the Register as required by Section 3.1 hereof. In
the event that any Notes have been issued in respect of the assigned Loan or Loans, such Notes
shall be marked “cancelled” and surrendered by the transferor Bank to the Administrative Agent for
return to the Borrower.

     (d) The Administrative Agent shall maintain at its address referred to in Section 10.2(a) a
copy of each Assignment and Acceptance delivered to it and a register (the “Register”) for
the recordation of the names and addresses of the Banks and the Commitments of, and principal
amount of the Loans owing to, each Bank from time to time. To the extent permitted by applicable
law, the entries in the Register shall be conclusive, in the absence of manifest
error, and the Borrower, the Administrative Agent and the Banks may (and, in the case of any
Loan or other obligations hereunder not evidenced by a Note, shall) treat, each Person whose name
is recorded in the Register pursuant to the terms hereof as the owner of a Loan or other obligation
hereunder as the owner thereof for all purposes of this Agreement and the other Loan Documents,
notwithstanding any notice to the contrary. Any assignment of any Loan or other obligation
hereunder shall be effective only upon appropriate entries with respect thereto being made in the
Register. The Register shall be available for inspection by the Borrower or any Bank at any
reasonable time and from time to time upon reasonable prior notice.

     (e) Upon its receipt of an Assignment and Acceptance executed by a transferor Bank and
Purchasing Bank (and, in the case of a Purchasing Bank that is not then a Bank Affiliate, by the
Borrower and the Administrative Agent), together with payment to the Administrative Agent of a
registration and processing fee of $3,500, the Administrative Agent shall promptly accept such
Assignment and Acceptance on the Transfer Effective Date determined pursuant thereto, record the
information contained therein in the Register and give notice of such acceptance and recordation to
the Banks and the Borrower.

     (f) Any Bank may at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Bank, including any pledge or assignment
to secure obligations to a Federal Reserve Bank or other central banking authority, and this
Section shall not apply to any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Bank from any of its
obligations hereunder or substitute any such pledgee or Purchasing Bank for such Bank as a party
hereto. The Borrower hereby agrees that, upon request of any Bank at any time and from

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time to time after the Borrower has made its initial Borrowing hereunder, the Borrower shall provide to
such Bank, at the Borrower’s own expense, a promissory note, substantially in the form of
Exhibit D-1 or D-2 evidencing the Loans or L/C Obligations, as the case may be, owing to
such Bank.

     SECTION 10.7. Setoff. In addition to any rights and remedies of the Banks provided by
law, if any Event of Default shall have occurred and be continuing, each Bank shall have the right,
to the fullest extent permitted by law, without prior notice to the Borrower (any such notice being
expressly waived by the Borrower to the extent permitted by applicable law), to set off and apply
any and all deposits (general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Bank or
any branch or agency thereof to or for the credit or the account of the Borrower against any of and
all the obligations of the Borrower existing under this Agreement which are then due and payable.
Each Bank agrees promptly to notify the Borrower and the Administrative Agent after any such setoff
and application made by such Bank, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

     SECTION 10.8. Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set of the copies of
this Agreement signed by all the parties shall be maintained with Borrower and the Administrative
Agent.

     SECTION 10.9. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     SECTION 10.10. Integration. This Agreement and the other Loan Documents represent the
agreement of the Borrower, the Administrative Agent and the Banks with respect to the subject
matter hereof, and there are no promises, undertakings, representations or warranties by the
Administrative Agent or any Bank relative to the subject matter hereof not expressly set forth or
referred to herein or in the other Loan Documents.

     SECTION 10.11. GOVERNING LAW. (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

     (b) Notwithstanding anything in Section 10.11(a) to the contrary, nothing in this Agreement or
in any Note or any other Loan Documents shall be deemed to constitute a waiver of any rights which
any Bank may have under applicable federal law relating to the amount of interest which any Bank
may contract for, take, receive or charge in respect of any Loans,

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including any right to take, receive, reserve and charge interest at the rate allowed by the laws of the state where such Bank
is located. To the extent that Texas law is applicable to the determination of the Highest Lawful
Rate, the Banks and the Borrower agree that (i) if Chapter 303 of the Texas Finance Code, as
amended, is applicable to such determination, the weekly rate ceiling as computed from time to time
shall apply, provided that, to the extent permitted by such Article, the Administrative
Agent may from time to time by notice to the Borrower revise the election of such interest rate
ceiling as such ceiling affects the then current or future balances of the Loans; and (ii) the
provisions of Chapter 346 of the Texas Finance Code, as amended shall not apply to this Agreement
or any Note issued hereunder.

     SECTION 10.12. Submission to Jurisdiction; Waivers. The Borrower hereby irrevocably
and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York sitting in New York County, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid to the Borrower at its address set forth in Section 10.2 or at such other address of which
the Administrative Agent shall have been notified pursuant thereto; and

     (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction.

     SECTION 10.13. Acknowledgments. The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

     (b) neither the Administrative Agent nor any Bank has any fiduciary relationship with or duty
to the Borrower arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Administrative Agent and the Banks, on one hand, and
the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

     (c) no joint venture exists among the Banks or among the Borrower and the Banks.

     SECTION 10.14. Limitation on Agreements. All agreements between the Borrower, the
Administrative Agent or any Bank, whether now existing or hereafter arising and whether written or
oral, are hereby expressly limited so that in no contingency or event whatsoever,

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whether by reason of demand being made in respect of an amount due under any Loan Document or otherwise, shall the
amount paid, or agreed to be paid, to the Administrative Agent or any Bank for the use,
forbearance, or detention of the money to be loaned under this Agreement, any Notes or any other
Loan Document or otherwise or for the payment or performance of any covenant or obligation
contained herein or in any other Loan Document exceed the Highest Lawful Rate. If, as a result of
any circumstances whatsoever, fulfillment of any provision hereof or of any of such documents, at
the time performance of such provision shall be due, shall involve transcending the limit of
validity prescribed by applicable usury law, then, ipso facto, the obligation to be fulfilled shall
be reduced to the limit of such validity, and if, from any such circumstance, the Administrative
Agent or any Bank shall ever receive interest or anything that might be deemed interest under
applicable law that would exceed the Highest Lawful Rate, such amount that would be excessive
interest shall be applied to the reduction of the principal amount owing on account of such Bank’s
Loans or the amounts owing on other obligations of the Borrower to the Administrative Agent or any
Bank under any Loan Document and not to the payment of interest, or if such excessive interest
exceeds the unpaid principal balance of such Bank’s Loans and the amounts owing on other
obligations of the Borrower to the Administrative Agent or any Bank under any Loan Document, as the
case may be, such excess shall be refunded to the Borrower. All sums paid or agreed to be paid to
the Administrative Agent or any Bank for the use, forbearance or detention of the indebtedness of
the Borrower to the Administrative Agent or any Bank shall, to the fullest extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full of the principal (including the period of any renewal or
extension thereof) so that the interest on account of such indebtedness shall not exceed the
Highest Lawful Rate. Notwithstanding anything to the contrary contained in any Loan Document, it
is understood and agreed that if at any time the rate of interest that accrues on the outstanding
principal balance of any Loan shall exceed the Highest Lawful Rate, the rate of interest that
accrues on the outstanding principal balance of any Loan shall be limited to the Highest Lawful
Rate, but any subsequent reductions in the rate of interest that accrues on the outstanding
principal balance of any Loan shall not reduce the rate of interest that accrues on the outstanding
principal balance of any Loan below the Highest Lawful Rate until the total amount of interest
accrued on the outstanding principal balance of any Loan equals the amount of interest that would
have accrued if such interest rate had at all times been in effect. The terms and provisions of
this Section 10.14 shall control and supersede every other provision of all Loan Documents.

     SECTION 10.15. Removal of Bank. Notwithstanding anything herein or in any other Loan
Document to the contrary, the Borrower may, at any time in its sole discretion, remove any Bank
upon 15 Business Days’ written notice to such Bank and the Administrative Agent (the contents of
which notice shall be promptly communicated by the Administrative Agent to each other Bank), such
removal to be effective at the expiration of such 15-day notice period; provided,
however, that no Bank may be removed hereunder at a time when an Event of Default shall
have occurred and be continuing. Each notice by the Borrower under this Section 10.15 shall
constitute a representation by the Borrower that the removal described in such notice is permitted
under this Section 10.15. Concurrently with such removal, the Borrower shall pay to such removed
Bank all amounts owing to such Bank hereunder (including any amounts arising under Section 3.7 as a
consequence of such removal) and under any other Loan Document in immediately available funds.
Upon full and final payment hereunder of all amounts owing to such removed Bank, such Bank shall
make appropriate entries in its accounts evidencing

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payment of all Loans hereunder and releasing the Borrower from all obligations owing to the removed Bank in respect of the Loans hereunder and
surrender to the Administrative Agent for return to the Borrower any Notes of the Borrower then
held by it. Effective immediately upon such full and final payment, such removed Bank will not be
considered to be a “Bank” for purposes of this Agreement, except for the purposes of any provision
hereof that by its terms survives the termination of this Agreement and the payment of the amounts
payable hereunder. Effective immediately upon such removal, the Commitment of such removed Bank
shall immediately terminate and such Bank’s participation share in any outstanding Letters of Credit shall immediately terminate and such
participation share shall be divided among the remaining Banks according to their Revolving
Percentages. Such removal will not, however, affect the Commitments of any other Banks hereunder.

     SECTION 10.16. Confidentiality. Each of the Banks and the Administrative Agent agrees
to maintain, and to use its commercially reasonable efforts to cause any third party recipient of
the information described in this Section 10.16 to maintain, any information delivered or made
available by the Borrower to it (including any information obtained pursuant to Section 7.1),
confidential from anyone other than Persons employed or retained by such party who are or are
expected to become engaged in evaluating, approving, structuring or administering the transactions
contemplated hereunder; provided that nothing shall prevent any Bank or the Administrative Agent
from disclosing such information (i) to any other Bank or any Affiliate of any Bank, (ii) pursuant
to subpoena or upon the order of any court or administrative agency having jurisdiction over such
Bank or the Administrative Agent, as the case may be, (iii) upon the request or demand of any
Governmental Authority or self-regulatory body, in each case, having jurisdiction over such Bank or
the Administrative Agent, as the case may be, (iv) if such information has been publicly disclosed
(other than by reason of disclosure by any Bank or the Administrative Agent in breach of its
obligations under this Section 10.16), (v) to the extent reasonably required in connection with any
litigation to which either the Administrative Agent, any Bank, the Borrower or their respective
Affiliates may be a party relating to this Agreement or any other Loan Document, (vi) to the extent
reasonably required in connection with the exercise of any remedy hereunder, (vii) to the
Administrative Agent’s or such Bank’s, as the case may be, legal counsel, independent auditors and
other professional advisors and agents involved in the administration of the Loans hereunder, or
(viii) to any actual or proposed Participant, Purchasing Bank, hedge counterparty in respect of
this Agreement or pledgee (each, a “Transferee”) that has agreed in writing to be bound by
the provisions of this Section 10.16. To the extent permitted by applicable law, in the event that
any Bank or the Administrative Agent is legally requested or required to disclose any confidential
information pursuant to clause (ii), (iii) or (v) of this Section 10.16, such party shall promptly
notify the Borrower of such request or requirement prior to disclosure so that Borrower may seek an
appropriate protective order and/or waive compliance with the terms of this Agreement. If,
however, in the opinion of counsel for such party, such party is nonetheless, in the absence of
such order or waiver, compelled to disclose such confidential information or otherwise stand liable
for contempt or suffer possible censure or other penalty or liability, then such party may disclose
such confidential information without liability to the Borrower; provided, however, that such party
will use its commercially reasonable efforts to minimize the disclosure of such information.
Subject to the exceptions above to disclosure of information, each of the Banks and the
Administrative Agent agrees that it shall not publish, publicize, or otherwise make public any
information regarding this Agreement

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or the transactions contemplated hereby without the written
consent of the Borrower, in its sole discretion.

     SECTION 10.17. Officer’s Certificates. It is not intended that any certificate of any
officer of the Borrower delivered to the Administrative Agent or any Bank pursuant to this
Agreement shall give rise to any personal liability on the part of such officer.

     SECTION 10.18. USA Patriot Act. Each Bank and the Administrative Agent (for itself
and not on behalf of any Bank) hereby notifies the Borrower that, pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Patriot Act”), it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information
that will allow such Bank or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Patriot Act. The Borrower shall, and shall cause each of its Subsidiaries to,
provide, to the extent commercially reasonable, such information and take such actions as are
reasonably requested by each Bank and the Administrative Agent to maintain compliance with the
Patriot Act.

     SECTION 10.19. No Advisory or Fiduciary Responsibility. The Borrower acknowledges and
agrees, and acknowledges its Affiliates’ understanding, that: (a) no fiduciary, advisory or agency
relationship between the Borrower or any of its Affiliates, on the one hand, and the Administrative
Agent, any other Agent, any Lead Arranger, any Global Coordinator, any Issuing Bank, the Swingline
Lender or any Bank, on the other hand, is intended to be or has been created in respect of this
Agreement, irrespective of whether any such Person has advised or is advising the Borrower or any
of its Affiliates on other matters, (b) each of the Administrative Agent, the other Agents, the
Lead Arrangers, the Global Coordinators, the Issuing Banks, the Swingline Lender and the Banks, on
the one hand, and the Borrower and its Affiliates, on the other hand, have an arm’s length business
relationship that does not directly or indirectly give rise to, nor do the Borrower and its
Affiliates rely on, any fiduciary duty to them on the part of the Administrative Agent, any other
Agent, any Lead Arranger, any Global Coordinator, any Issuing Bank, the Swingline Lender or any
Bank, (c) the Borrower and its Affiliates are capable of evaluating and understanding, and each of
the Borrower and its Affiliates understands and accepts, the terms, risks and conditions of the
transactions contemplated by this Agreement and by the other Loan Documents, (d) the Borrower and
its Affiliates have been advised that the Administrative Agent, the other Agents, the Lead
Arrangers, the Global Coordinators, the Issuing Banks, the Swingline Lender and the Banks are
engaged in a broad range of transactions that may involve interests that differ from the interests
of the Borrower and its Affiliates and no such Person has any obligation to disclose such interests
and transactions to the Borrower or any of its Affiliates, (e) the Borrower and its Affiliates have
consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed
appropriate, and (f) each of the Administrative Agent, the other Agents, the Lead Arrangers, the
Global Coordinators, the Issuing Banks, the Swingline Lender and the Banks has been, is, and will
be acting solely as a principal and, except as otherwise expressly agreed in writing by it and the
relevant parties, has

90

 

not been, is not, and will not be acting as an advisor, agent or fiduciary
for the Borrower or any of its Affiliates or any other Person or entity in respect of the
transactions contemplated by this Agreement.

91

 

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

	 	 	 	 	 
	 	CENTERPOINT ENERGY, INC.

 	 
	 	By:  	/s/ Marc Kilbride
 	 
	 	 	Name:  	Marc Kilbride 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, as an Issuing Bank,

as the Swingline Lender and as a Bank

 	 
	 	By:  	/s/ Peter Christensen
 	 
	 	 	Name:  	Peter Christensen 	 
	 	 	Title:  	Vice President 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Co-Syndication Agent, as an Issuing Bank

and as a Bank

 	 
	 	By:  	/s/ Mike Mason
 	 
	 	 	Name:  	Mike Mason 	 
	 	 	Title:  	Director 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as

Co-Syndication Agent and as a Bank

 	 
	 	By:  	/s/ Tyler J. McCarthy
 	 
	 	 	Name:  	Tyler J. McCarthy 	 
	 	 	Title:  	Director 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as Co-Documentation Agent and as a Bank

 	 
	 	By:  	/s/ Ann E. Sutton
 	 
	 	 	Name:  	Ann E. Sutton 	 
	 	 	Title:  	Director 	 
	 

CNP Credit Agreement — Signature Page

 

 

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

as a Bank

 	 
	 	By:  	/s/ Maureen P. Maroney
 	 
	 	 	Name:  	Maureen P. Maroney 	 
	 	 	Title:  	Authorized Signatory 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK SECURITIES INC., as

Co-Documentation Agent

 	 
	 	By:  	/s/ Robert Danziger
 	 
	 	 	Name:  	Robert Danziger 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                          /s/ Philippe Sandmeier
 	 
	 	 	Name:  	Philippe Sandmeier 	 
	 	 	Title:  	Managing Director 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH, as a Bank

 	 
	 	By:  	/s/ Philippe Sandmeier
 	 
	 	 	Name:  	Philippe Sandmeier 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	
/s/ Ming K. Chu
 	 
	 	 	Name:  	Ming K. Chu  	 
	 	 	Title:  	Vice President 	 
	 

CNP Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as
Co-Documentation Agent and as a Bank

 	 
	 	By:  	/s/ Shawn Young
 	 
	 	 	Name:  	Shawn Young  	 
	 	 	Title:  	Director 	 
	 

CNP Credit Agreement — Signature Page

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