Document:

Exhibit 10.1(c)

 

 

GUARANTEE AND COLLATERAL AGREEMENT

 

dated as of September 22, 2009

 

among

 

MXENERGY HOLDINGS INC.,

 

MXENERGY ELECTRIC INC.,

 

MXENERGY INC.,

 

and

 

THE OTHER PARTIES HERETO,

as Grantors,

 

and

 

SEMPRA ENERGY TRADING LLC,

as Secured Party

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2

  	
  Guaranty

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Guaranty

  	
   

  	
  8

  
	
  2.2

  	
  Right of Contribution

  	
   

  	
  9

  
	
  2.3

  	
  No Subrogation

  	
   

  	
  9

  
	
  2.4

  	
  Amendments, etc. with Respect to the ISDA Obligations

  	
   

  	
  9

  
	
  2.5

  	
  Waivers

  	
   

  	
  10

  
	
  2.6

  	
  Payments

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3

  	
  Grant of Security Interest

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Grant

  	
   

  	
  10

  
	
  3.2

  	
  Collateral Assignment of Rights under the Contracts

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4

  	
  Representations and Warranties

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Corporate Authority

  	
   

  	
  12

  
	
  4.2

  	
  Title; No Other Liens

  	
   

  	
  12

  
	
  4.3

  	
  Perfected First Priority Liens

  	
   

  	
  12

  
	
  4.4

  	
  Grantor Information

  	
   

  	
  12

  
	
  4.5

  	
  Collateral Locations

  	
   

  	
  13

  
	
  4.6

  	
  Certain Property

  	
   

  	
  13

  
	
  4.7

  	
  Investment Property

  	
   

  	
  13

  
	
  4.8

  	
  Receivables

  	
   

  	
  13

  
	
  4.9

  	
  Intellectual Property

  	
   

  	
  14

  
	
  4.10

  	
  Depositary and Other Accounts

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5

  	
  Covenants

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
  Delivery of Instruments, Certificated Securities and
  Chattel Paper

  	
   

  	
  14

  
	
  5.2

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
   

  	
  14

  
	
  5.3

  	
  Changes in Locations, Name, etc.

  	
   

  	
  15

  
	
  5.4

  	
  Notices

  	
   

  	
  15

  
	
  5.5

  	
  Investment Property

  	
   

  	
  15

  
	
  5.6

  	
  Receivables

  	
   

  	
  16

  
	
  5.7

  	
  Intellectual Property

  	
   

  	
  17

  
	
  5.8

  	
  Counterparty Undertakings

  	
   

  	
  18

  
	
  5.9

  	
  Depositary and Other Deposit Accounts

  	
   

  	
  19

  
	
  5.10

  	
  Other Matters

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6

  	
  Remedial Provisions

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Certain Matters Relating to Receivables

  	
   

  	
  21

  
	
  6.2

  	
  Communications with Obligors; Grantors Remain Liable

  	
   

  	
  22

  
	
  6.3

  	
  Investment Property

  	
   

  	
  23

  
	
  6.4

  	
  Proceeds to be Turned Over to the Secured Party

  	
   

  	
  23

  

 

i

 

	
  6.5

  	
  Application of Proceeds

  	
   

  	
  24

  
	
  6.6

  	
  Code and Other Remedies

  	
   

  	
  24

  
	
  6.7

  	
  Private Sales of Pledged Equity

  	
   

  	
  25

  
	
  6.8

  	
  Waiver; Deficiency

  	
   

  	
  26

  
	
  6.9

  	
  Collateral Access

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7

  	
  Secured Party

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Secured Party’s Appointment as Attorney-in-Fact, etc.

  	
   

  	
  26

  
	
  7.2

  	
  Duty of Secured Party

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8

  	
  Miscellaneous

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Amendments in Writing

  	
   

  	
  28

  
	
  8.2

  	
  Notices

  	
   

  	
  28

  
	
  8.3

  	
  Indemnification by Grantors

  	
   

  	
  28

  
	
  8.4

  	
  Enforcement Expenses

  	
   

  	
  28

  
	
  8.5

  	
  Captions

  	
   

  	
  29

  
	
  8.6

  	
  Nature of Remedies

  	
   

  	
  29

  
	
  8.7

  	
  Counterparts

  	
   

  	
  29

  
	
  8.8

  	
  Severability

  	
   

  	
  29

  
	
  8.9

  	
  Entire Agreement

  	
   

  	
  29

  
	
  8.10

  	
  Successors; Assigns

  	
   

  	
  29

  
	
  8.11

  	
  Governing Law

  	
   

  	
  30

  
	
  8.12

  	
  Consent to Arbitration

  	
   

  	
  30

  
	
  8.13

  	
  Waiver of Certain Damages

  	
   

  	
  31

  
	
  8.14

  	
  Set-off

  	
   

  	
  31

  
	
  8.15

  	
  Certain Understandings

  	
   

  	
  31

  
	
  8.16

  	
  Acknowledgements

  	
   

  	
  31

  
	
  8.17

  	
  Additional Grantors

  	
   

  	
  32

  
	
  8.18

  	
  Releases

  	
   

  	
  32

  
	
  8.19

  	
  Obligations and Liens Absolute and Unconditional

  	
   

  	
  32

  
	
  8.20

  	
  Termination; Reinstatement

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  –

  	
  Grantors

  	
   

  	
   

  
	
  Schedule
  2

  	
  –

  	
  Pledged
  Equity, Investment Property and Pledged Notes

  	
   

  	
   

  
	
  Schedule
  3

  	
  –

  	
  Perfection
  Filings and Actions

  	
   

  	
   

  
	
  Schedule
  4

  	
  –

  	
  Collateral
  Locations

  	
   

  	
   

  
	
  Schedule
  5

  	
  –

  	
  Intellectual
  Property

  	
   

  	
   

  
	
  Schedule
  6

  	
  –

  	
  Deposit
  Accounts

  	
   

  	
   

  
	
  Schedule
  7

  	
  –

  	
  Identified
  Claims

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annex
  I

  	
  –

  	
  Joinder
  Agreement

  	
   

  	
   

  

 

ii

 

GUARANTEE AND COLLATERAL
AGREEMENT

 

Guarantee and Collateral
Agreement, dated as of September 22, 2009 (this “Agreement”), among
MxEnergy Holdings Inc., a Delaware corporation (“Holdings”), MxEnergy
Electric Inc., a Delaware corporation (“MX Electric”), MxEnergy Inc., a
Delaware corporation (“MX Energy” and, together with MX Electric,
collectively, the “MX Companies” and, individually, each a “MX
Company”), and each Subsidiary of Holdings listed on Schedule 1
hereto (together with Holdings, the MX Companies and any other Person that
becomes a party hereto as provided herein, collectively, the “Grantors”),
and Sempra Energy Trading LLC, a Delaware limited liability company (“Sempra”).

 

The Secured Party (defined
below) has agreed to enter into transactions with the MX Companies pursuant to
the terms of the Master ISDAs (as defined below), subject to (i) the
guarantee by each Grantor in favor of the Secured Party of all ISDA Obligations
(as defined below) of each other Grantor and (ii) the grant of a security
interest in favor of the Secured Party in all of the property and assets of
each Grantor (other than the Escrow Account (as defined below)).  The MX Companies are affiliated with each
other Grantor.  The MX Companies and the
other Grantors are engaged in interrelated businesses, and each Grantor will
derive substantial direct and indirect benefit from transactions under the
Master ISDAs. It is a condition precedent to the Secured Party’s obligation to
enter into transactions under the Master ISDAs that the Grantors shall have
executed and delivered this Agreement to the Secured Party.

 

In consideration of the
premises and to induce the Secured Party to enter into the Master ISDAs and to
induce the Secured Party to enter into transactions with thereunder, each
Grantor hereby agrees with the Secured Party as follows:

 

Section 1                                               Definitions.

 

1.1           Unless otherwise defined herein, terms defined in the
Master ISDAs and used herein shall have the meanings given to them in the
Master ISDAs, and the following terms are used herein as defined in the UCC (as
defined below): Accounts, Certificated Security, Chattel Paper, Commercial Tort
Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm
Products, Goods, Health Care Insurance Receivables, Instruments, Inventory,
Leases, Letter-of-Credit Rights, Money, Payment Intangibles, Supporting
Obligations and Tangible Chattel Paper.

 

1.2           When used herein the following terms shall have the
following meanings:

 

“AAA” has the meaning
set forth in Section 8.12(a).

 

“Additional Master ISDA”
means any Master ISDA Agreement entered into by the Secured Party and Holdings
or a Subsidiary of Holdings (other than MX Energy and MX Electric) and any
schedules, annexes, exhibits, confirmations or other documents related thereto,
as the same may be amended, amended and restated, supplemented, modified,
renewed, restated, replaced, refinanced or extended, restructured or otherwise
modified, in whole or in part, from time to time, and including any agreement
extending the maturity of, or refinancing or restructuring in full (including,
but not limited to, the inclusion of additional guarantors or parties therewith
or any increase in the amount borrowed or covered thereby) of all of, the
indebtedness 

 

 

or
other obligations under such agreement or any successor agreements, whether or
not with the same agent, trustee, representative, lenders, holders or parties.

 

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

 

“Chattel Paper” means
all “chattel paper” as such term is defined in Section 9-102(a)(11) of the
UCC and, in any event, including with respect to any Grantor, all Electronic
Chattel Paper and Tangible Chattel Paper.

 

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

 

“Collateral” means (a) all
of the personal property now owned or at any time hereafter acquired by any
Grantor or in which any Grantor now has or at any time in the future may
acquire any right, title or interest, including all of each Grantor’s Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment,
Fixtures, General Intangibles, Health Care Insurance Receivables, Farm
Products, Goods, Instruments, Intellectual Property, Inventory, Investment
Property, Leases, Letter-of-Credit Rights, Money, Supporting Obligations and
Identified Claims, (b) all books and records pertaining to any of the
foregoing, (c) all Proceeds and products of any of the foregoing, and (d) all
collateral security and guaranties given by any Person with respect to any of
the foregoing; provided, however, that “Collateral” shall not
include the Escrow Account or proceeds therefrom. Where the context requires,
terms relating to the Collateral or any part thereof, when used in relation to
a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

 

“Collateral Access
Agreement” means an agreement in form and substance reasonably satisfactory
to the Secured Party pursuant to which a mortgagee or lessor of real property
on which Collateral is stored or otherwise located, or a warehouseman or other
bailee of any property owned by Holdings or any of its Subsidiaries,
acknowledges the Liens of the Secured Party and waives (or subordinates on
terms and conditions reasonably acceptable to the Secured Party) any Liens held
by such Person on such property, and, in the case of any such agreement with a
mortgagee or lessor, permits the Secured Party reasonable access to and use of
such real property during the continuance of a Default or Potential Termination
Event to assemble, complete and sell any Collateral stored or otherwise located
thereon.

 

“Contract” means any
contract or agreement to which any Grantor is a party.

 

“Contract Rights”
means all of the Grantors’ rights and remedies under any Contract.

 

“Copyright Licenses”
means all written agreements naming any Grantor as licensor or licensee, including
those listed on Schedule 5, granting any right under any Copyright,
including the grant of rights to manufacture, distribute, exploit and sell
materials derived from any Copyright.

 

“Copyrights” means
all copyrights arising under the laws of the United States, any other country
or any political subdivision thereof, whether registered or unregistered and
whether 

 

2

 

published
or unpublished, including those listed on Schedule 5, all registrations and
recordings thereof, and all applications in connection therewith, including all
registrations, recordings and applications in the United States Copyright
Office, and the right to obtain all renewals of any of the foregoing.

 

“Counterparty
Undertakings” means, collectively, all representations, warranties,
covenants and agreements in favor of any Grantor, and all indemnifications for
the benefit of any Grantor relating thereto, pursuant to the Contracts.

 

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

 

	
  (i)

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

  
	
   

  	
   

  
	
  (ii)

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

  
	
   

  	
   

  
	
  (iii)

  	
  irrevocable
  termination or expiration of all commitments, if any, of the Secured Party to
  extend credit or undertake transactions that would constitute, or give rise
  to, ISDA Obligations; and

  
	
   

  	
   

  
	
  (iv)

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

  

 

“Escrow Account”
means the escrow account under that certain Escrow Agreement, dated as of September 22,
2009, by and among the Junior Notes Trustee, Holdings and Law Debenture Trust
Company of New York, as escrow agent.

 

“Fixtures” means all
of the following, whether now owned or hereafter acquired by a Grantor: plant
fixtures; business fixtures; other fixtures and storage facilities, wherever
located; and all additions and accessories thereto and replacements therefor.

 

“General Intangibles”
means all “general intangibles” as such term is defined in Section 9-102(a)(42)
of the UCC and, in any event, including with respect to any Grantor, all
Payment Intangibles, all Contract Rights, all Counterparty Undertakings,
agreements, instruments and indentures in any form, and portions thereof, to
which such Grantor is a party or under which 

 

3

 

such
Grantor has any right, title or interest or to which such Grantor or any
property of such Grantor is subject, as the same from time to time may be
amended, supplemented or otherwise modified, including, without limitation, (a) all
rights of such Grantor to receive moneys due and to become due to it thereunder
or in connection therewith, (b) all rights of such Grantor to damages arising
thereunder and (c) all rights of such Grantor to perform and to exercise
all remedies thereunder; provided, that the foregoing limitation shall
not affect, limit, restrict or impair the grant by such Grantor of a security
interest pursuant to this Agreement in any Receivable or any money or other
amounts due or to become due under any such Payment Intangible, contract,
agreement, instrument or indenture.

 

“Grantors” has the
meaning set forth in the preamble hereto.

 

“Guarantee and Collateral
Agreement Joinder” means a joinder agreement in the form of Annex I
hereto.

 

“Holdings” has the
meaning set forth in the preamble hereto.

 

“Holdings Documents”
has the meaning set forth in Section 5.11.

 

“Identified Claims”
means the Commercial Tort Claims described on Schedule 7 as such
schedule shall be supplemented from time to time.

 

“Indemnified Liabilities”
has the meaning set forth in Section 8.3.

 

“Insolvency or
Liquidation Proceeding”  means:

 

	
  (i)

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

  
	
   

  	
   

  
	
  (ii)

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

  
	
   

  	
   

  
	
  (iii)

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

  

 

4

 

“Intellectual Property”
means the collective reference to all rights, priorities and privileges
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including the Copyrights, the
Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the
Trademark Licenses, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

 

“Intercompany Note”
means any promissory note evidencing loans made by any Grantor to any other
Grantor.

 

“Intercreditor Agreement”
means that certain Intercreditor Agreement, dated as of September 22,
2009, by and among the Secured Party, Holdings, the other pledgors from time to
time parties thereto and the Junior Notes Trustee.

 

“Investment Property”
means the collective reference to (a) all “investment property” as such
term is defined in Section 9-102(a)(49) of the UCC (other than the equity
interest of any foreign Subsidiary excluded from the definition of Pledged
Equity), (b) all “financial assets” as such term is defined in Section 8-102(a)(9) of
the UCC, and (c) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Equity.

 

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

 

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

 

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

 

5

 

“Issuers” means the
collective reference to each issuer of any Investment Property.

 

“Junior Indenture”
means that certain Indenture, dated as of September 22, 2009, among
Holdings, the subsidiary guarantors named therein and the Junior Notes Trustee,
as the same may be amended, amended and restated, supplemented or otherwise
modified from time to time.

 

“Junior Notes Trustee”
means Law Debenture Trust Company of New York, in its capacity as trustee under
the Junior Indenture, and any of its successors and assigns.

 

“Lockbox Account” has
the meaning set forth in the respective Master ISDAs.

 

“Master ISDAs” means,
collectively, the Master MX Electric ISDA, the Master MX Energy ISDA and any
Additional Master ISDA.

 

“Master MX Electric ISDA”
means the Master ISDA Agreement, dated as of September 22, 2009, between
the Secured Party and MX Electric and any schedules, annexes, exhibits,
confirmations or other documents related thereto, as the same may be amended,
amended and restated, supplemented, modified, renewed, restated, replaced,
refinanced or extended, restructured or otherwise modified, in whole or in
part, from time to time, and including any agreement extending the maturity of,
or refinancing or restructuring in full (including, but not limited to, the
inclusion of additional guarantors or parties therewith or any increase in the
amount borrowed or covered thereby) of all of, the indebtedness or other
obligations under such agreement or any successor agreements, whether or not
with the same agent, trustee, representative, lenders, holders or parties.

 

“Master MX Energy ISDA”
means the Master ISDA Agreement, dated as of September 22, 2009, between
the Secured Party and MX Energy and any schedules, annexes, exhibits,
confirmations or other documents related thereto, as the same may be amended,
amended and restated, supplemented, modified, renewed, restated, replaced,
refinanced or extended, restructured or otherwise modified, in whole or in
part, from time to time, and including any agreement extending the maturity of,
or refinancing or restructuring in full (including, but not limited to, the
inclusion of additional guarantors or parties therewith or any increase in the
amount borrowed or covered thereby) of all of, the indebtedness or other
obligations under such agreement or any successor agreements, whether or not
with the same agent, trustee, representative, lenders, holders or parties.

 

“MX Companies” and “MX
Company” mean any of MX Electric, MX Energy and any other Grantor named as “Party
B” in a Master ISDA, as the context may require, and any of their successors or
assigns.

 

“MX Electric” has the
meaning set forth in the preamble hereto.

 

“MX Energy” has the
meaning set forth in the preamble hereto.

 

“Operating Account”
has the meaning set forth in the respective Master ISDAs.

 

6

 

“Patent Licenses”
means all agreements, whether written or oral, providing for the grant by or to
any Grantor of any right to manufacture, use or sell any invention covered  in  whole  or  in  part  by  a  Patent,  including  any  of  the  foregoing  referred  to  in  Schedule  5.

 

“Patents” means (a) all
letters patent of the United States, any other country or any political
subdivision thereof, all reissues and extensions thereof and all goodwill
associated therewith, including any of the foregoing referred to in Schedule
5, (b) all applications for letters patent of the United States or any
other country and all divisions, continuations and continuations-in-part
thereof, including any of the foregoing referred to in Schedule 5, and (c) all
rights to obtain any reissues or extensions of the foregoing.

 

“Payments” has the
meaning set forth in Section 3.2.

 

“Pledged Equity”
means 100% of the outstanding equity interests in MX Electric, MX Energy and
any other Subsidiary of Holdings, as set forth on Schedule 2, and such
other equity interests set forth on Schedule 2, together with any other
equity interests, certificates, options or rights of any nature whatsoever in
respect of the equity interests of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect; provided,
that in no event shall more than 65% of the total outstanding equity interests
of any foreign Subsidiary (including MxEnergy (Canada) Ltd., a Nova Scotia
corporation) be required to be pledged hereunder.

 

“Pledged Notes” means
all promissory notes listed on Schedule 2, all Intercompany Notes at any
time issued to any Grantor and all other promissory notes issued to or held by
any Grantor (other than promissory notes issued in connection with extensions
of trade credit by any Grantor in the ordinary course of business).

 

“Proceeds” means all “proceeds”
as such term is defined in Section 9-102(a)(64) of the UCC and, in any
event, shall include all dividends or other income from the Investment
Property, collections thereon or distributions or payments with respect
thereto.

 

“Receivable” means
any right to payment for goods sold or leased or for services rendered, whether
or not such right is evidenced by an Instrument or Chattel Paper and whether or
not it has been earned by performance (including any Accounts).

 

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

 

“Secured Party”
means, at any time, the Person serving at such time as “Party A” under the
Master ISDAs or any other representative then most recently designated in
accordance with the applicable provisions of the Master ISDAs or any successor
or replacement agreement or agreements entered into in connection with the
replacement or refinancing of the Master ISDAs together with its successors in
such capacity; provided that any such successor or replacement shall
have executed this Agreement or a Guarantee and Collateral Agreement Joinder.

 

“Securities Act”
means the United States Securities Act of 1933, as amended.

 

“Sempra Party” has
the meaning set forth in Section 8.3.

 

7

 

“Subsidiary Grantor”
means a Grantor that is a Subsidiary of an MX Company.

 

“Trademarks” means (a) all
trademarks, trade names, domain names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, or otherwise, and all common-law rights related thereto,
including any of the foregoing referred to in Schedule 5, and (b) the
right to obtain all renewals thereof.

 

“Trademark Licenses”
means, collectively, each agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including any of
the foregoing referred to in Schedule 5.

 

“UCC” means the
Uniform Commercial Code as in effect on the date hereof and from time to time
in the State of New York; provided, that if by reason of mandatory
provisions of law, the perfection or the effect of perfection or non-perfection
of the security interests in any Collateral or the availability of any remedy
hereunder is governed by the Uniform Commercial Code as in effect on or after
the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-perfection or
availability of such remedy.

 

Section 2                                               Guaranty.

 

2.1                                 Guaranty.  (a)  Each of the Grantors hereby,
jointly and severally, unconditionally and irrevocably, as a primary obligor
and not only a surety, guaranties to the Secured Party and its respective
successors, endorsees, transferees and assigns and (to the extent provided
herein) its Affiliates, the prompt and complete payment and performance by each
other Grantor when due (whether at the stated maturity, by acceleration or
otherwise) of the ISDA Obligations.

 

(b)                                 Anything herein to the contrary notwithstanding, the maximum
liability of each Grantor hereunder and under the other Related Agreements
shall in no event exceed the amount which can be guaranteed by such Grantor
under applicable federal and state laws relating to the insolvency of debtors
(after giving effect to the right of contribution established in Section 2.2).

 

(c)                                  Each Grantor agrees that the ISDA Obligations may at any
time and from time to time exceed the amount of the liability of such Grantor
hereunder without impairing the guaranty contained in this Section 2
or affecting the rights and remedies of the Secured Party hereunder.

 

(d)                                 The guaranty contained in this Section 2 shall
remain in full force and effect until the Discharge of ISDA Obligations.

 

(e)                                  No payment made by any MX Company, any other Grantor, any
other guarantor or any other Person or received or collected by the Secured
Party from any of the Grantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the 

 

8

 

ISDA
Obligations shall be deemed to modify, reduce, release or otherwise affect the
liability of any Grantor hereunder, which, notwithstanding any such payment
(other than any payment made by such Grantor in respect of the ISDA Obligations
or any payment received or collected from such Grantor in respect of the ISDA
Obligations), shall remain liable for the ISDA Obligations up to the maximum
liability of such Grantor hereunder until the Discharge of ISDA Obligations.

 

2.2                                 Right of Contribution.  Each Grantor hereby agrees that to the extent
that a Grantor shall have paid more than its proportionate share of any payment
made hereunder, such Grantor shall be entitled to seek and receive contribution
from and against any other Grantor hereunder which has not paid its
proportionate share of such payment. Each Grantor’s right of contribution shall
be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2
shall in no respect limit the obligations and liabilities of any Grantor to the
Secured Party, and each Grantor shall remain liable to the Secured Party for
the full amount guaranteed by such Grantor hereunder.

 

2.3                                 No Subrogation.  Notwithstanding any payment made by any
Grantor hereunder or any set-off or application of funds of any Grantor by the
Secured Party, no Grantor shall be entitled to be subrogated to any of the
rights of the Secured Party against any MX Company or any other Grantor or any
collateral security or guaranty or right of off-set held by the Secured Party
for the payment of the ISDA Obligations, nor shall any Grantor seek or be
entitled to seek any contribution or reimbursement from any MX Company or any
other Grantor in respect of payments made by such Grantor hereunder, until the
Discharge of ISDA Obligations. If any amount shall be paid to any Grantor on
account of such subrogation rights at any time prior to the Discharge of ISDA
Obligations, such amount shall be held by such Grantor in trust for the Secured
Party, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Secured Party in the exact form
received by such Grantor (duly endorsed by such Grantor to the Secured Party,
if required), to be applied against the ISDA Obligations, whether matured or
unmatured, in accordance with Section 6.5 hereof.

 

2.4                                 Amendments, etc. with Respect to the ISDA Obligations.  Each Grantor shall
remain obligated hereunder notwithstanding that, without any reservation of
rights against any Grantor and without notice to or further assent by any
Grantor, any demand for payment of any of the ISDA Obligations made by the
Secured Party may be rescinded by the Secured Party and any of the ISDA
Obligations continued, and the ISDA Obligations, or the liability of any other
Person upon or for any part thereof, or any collateral security or guaranty
therefor or right of off-set with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Secured Party, and the ISDA
Documents and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in
part, as the Secured Party may deem advisable from time to time.  The Secured Party shall not have any
obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the ISDA Obligations or for the guaranty contained in this Section 2
or any property subject thereto.

 

The Secured Party may, from
time to time, at its sole discretion and without notice to any Grantor (or any
of them), take any or all of the following actions: (a) retain or obtain a
security interest in any property of any Grantor to secure any of the ISDA
Obligations or any obligation hereunder, (b) retain or obtain the primary
or secondary obligation of any obligor or obligors, in 

 

9

 

addition
to the undersigned, with respect to any of the ISDA Obligations, (c) extend
or renew any of the ISDA Obligations for one or more periods (whether or not
longer than the original period), alter or exchange any of the ISDA
Obligations, or release or compromise any obligation of any of the undersigned
hereunder or any obligation of any nature of any other obligor with respect to
any of the ISDA Obligations, (d) release any guaranty or right of off-set
or security interest in, or surrender, release or permit any substitution or
exchange for, all or any part of any property securing any of the ISDA
Obligations or any obligation hereunder, or extend or renew for one or more
periods (whether or not longer than the original period) or release,
compromise, alter or exchange any obligations of any nature of any obligor with
respect to any such property, and (e) resort to the Grantors (or any of
them) for payment of any of the ISDA Obligations when due, whether or not the
Secured Party shall have resorted to any property securing any of the ISDA
Obligations or any obligation hereunder or shall have proceeded against any
other of the undersigned or any other obligor primarily or secondarily
obligated with respect to any of the ISDA Obligations.

 

2.5                                 Waivers.  Each Grantor waives any and all notice of the
creation, renewal, extension or accrual of any of the ISDA Obligations and
notice of or proof of reliance by the Secured Party upon the guaranty contained
in this Section 2 or acceptance of the guaranty contained in this Section 2;
the ISDA Obligations, and any of them, shall conclusively be deemed to have
been created, contracted or incurred, or renewed, extended, amended or waived,
in reliance upon the guaranty contained in this Section 2, and all
dealings between any MX Company and any of the other Grantors, on the one hand,
and the Secured Party, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guaranty
contained in this Section 2. 
Each Grantor waives (a) diligence, presentment, protest, demand for
payment and notice of default or nonpayment and all other notices whatsoever to
or upon any MX Company or any of the other Grantors with respect to the ISDA
Obligations, (b) notice of the existence or creation or non-payment of all
or any of the ISDA Obligations and (c) all diligence in collection or
protection of or realization upon any ISDA Obligations or any security for or
guaranty of any ISDA Obligations.

 

2.6                                 Payments.  Each Grantor hereby guaranties that payments
hereunder will be paid to the Secured Party without set-off or counterclaim in
Dollars at the office of the Secured Party specified in the Master ISDAs.

 

Section 3                                               Grant of Security Interest.

 

3.1                                 Grant.

 

(a)                                  Each Grantor hereby assigns and transfers to the Secured
Party, and hereby grants to the Secured Party, and their respective successors,
endorsees, transferees and assigns and (to the extent provided herein) their
Affiliates, a continuing security interest in all of its Collateral, as
collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of the ISDA
Obligations.

 

(b)                                 Notwithstanding any other provision of this Section 3.1,
but subject to Section 3.1(d), this Agreement shall not constitute a grant
of a security interest in (i) any property to the extent that (and only
for so long as) such grant of a security interest is expressly prohibited by 

 

10

 

any
applicable law, (ii) accounts receivable from Customers to the extent that
(and only for so long as) such grant of a security interest is prohibited by,
or constitutes a breach or default under or results in the termination of or
requires any consent not obtained under, any express provision of any contract,
agreement or instrument between a LDC or an EDC and one or more Grantors and (iii) any
contract between a LDC or EDC and one or more Grantors which has express
provisions which prohibit grants of security interests in such contract unless
an exception to such prohibition is applicable to the security interest granted
by this Agreement (unless in any such case and to the extent such applicable
law or such relevant express provision in such contract, agreement, instrument
providing for such prohibition, breach, default or termination or requiring
such consent is ineffective under applicable law).  For the avoidance of doubt, this Section 3.1(b) is
not applicable to accounts receivable due from a LDC or an EDC to one or more Grantors.

 

(c)                                  Each Grantor hereby agrees to use commercially reasonable
efforts to obtain any required consent not obtained under, or to seek an
amendment to, any contract, agreement, instrument or other document in order to
permit the grant of a security interest to the Secured Party (or its agents) in
any property affected by Section 3.1(b).

 

(d)                                 Section 3.1(b) shall not be deemed effective to
the extent that Section 9-406, Section 9-407 or Section 9-408 of
the UCC would in any instance render the limitations set forth in clauses (i), (ii) or
(iii) of Section 3.1(b) ineffective.

 

3.2                                 Collateral Assignment of Rights under the Contracts.  Each Grantor hereby
irrevocably authorizes and empowers the Secured Party or its agents, in their
sole discretion, to assert, either directly or on behalf of any Grantor, at any
time that a Default or Potential Termination Event is in existence, any claims
any Grantor may from time to time have against the counterparties or any of
their affiliates with respect to any and all of the Contract Rights or with
respect to any and all payments or other obligations due from the
counterparties or any of their affiliates to any Grantor under or pursuant to
the Contracts (“Payments”), and to receive and collect any damages,
awards and other monies resulting therefrom and to apply the same on account of
the ISDA Obligations in accordance with Section 6.5 hereof. After
the occurrence and during the continuation of a Default or Potential
Termination Event, the Secured Party may provide notice to the counterparties
or any of their Affiliates under any Contract that all Payments shall be made
to or at the direction of the Secured Party for so long as such Default or
Potential Termination Event shall be continuing. Following the delivery of any
such notice, the Secured Party shall promptly notify the counterparties under
such Contract upon the termination or waiver of any such Default or Potential
Termination Event and the Secured Party shall promptly deliver to Holdings any
Payments it receives after such termination or waiver and prior to notifying
the counterparties thereto. Each Grantor hereby irrevocably makes, constitutes
and appoints the Secured Party (and all officers, employees, or agents
designated by the Secured Party) as such Grantor’s true and lawful attorney
(and agent-in-fact) for the purpose of enabling the Secured Party or its agents
to assert and collect such claims and to apply such monies in the manner set
forth hereinabove.  Such appointment
shall become effective upon the occurrence and during the continuation of a
Default or Potential Termination Event and, if the ISDA Documents are
terminated following an Event of Default or a Termination Event, such
appointment shall continue thereafter.

 

11

 

Section 4                                               Representations and Warranties.

 

To induce the Secured Party
to enter into the Master ISDAs and to induce the Secured Party to enter into
transactions with the MX Companies, each Grantor, jointly and severally, hereby
represents and warrants to the Secured Party as follows:

 

4.1                                 Corporate Authority.  It is duly organized and validly existing
under the laws of the jurisdiction of its organization or incorporation and, if
relevant under such laws, in good standing. 
It has the corporate power to execute this Agreement and any other
documentation relating to this Agreement to which it is a party, to deliver
this Agreement and any other documentation relating to this Agreement that it
is required by this Agreement to deliver and to perform its obligations under
this Agreement and any obligations it has under any other ISDA Document to
which it is a party and has taken all necessary corporate action to authorize
such execution, delivery and performance. 
Such execution, delivery and performance do not violate or conflict with
any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it
or any of its assets or any contractual restriction binding on or affecting it
or any of its assets.  All governmental
and other consents that are required to have been obtained by it with respect
to this Agreement or any other ISDA Document to which it is a party have been obtained
and are in full force and effect and all conditions of any such consents have
been complied with.  Its obligations
under this Agreement and any other ISDA Document to which it is a party
constitute its legal, valid and binding obligations, enforceable in accordance
with their respective terms (subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general
application (regardless of whether enforcement is sought in a proceeding in
equity or at law)).

 

4.2                                 Title; No Other Liens.  Except for Permitted Liens, the Grantors own
each item of the Collateral free and clear of any and all Liens or claims of
others. No financing statement or other public notice with respect to all or
any part of the Collateral is on file or of record in any public office, except
filings evidencing Permitted Liens and filings for which termination statements
have been delivered to the Secured Party.

 

4.3                                 Perfected First Priority Liens.  The security
interests granted pursuant to this Agreement (a) upon completion of the
filings and other actions specified on Schedule 3 (which, in the
case of all filings and other documents referred to on Schedule 3,
have been delivered to the Secured Party in completed, to the extent required,
and duly executed form) will constitute valid perfected security interests in
all of the Collateral (other than unregistered patents, trademarks and
copyrights and titled motor vehicles) in favor of the Secured Party, as
collateral security for each Grantor’s obligations, enforceable in accordance
with the terms hereof against all creditors of each Grantor and any Persons
purporting to purchase any Collateral from each Grantor and (b) are prior
to all other Liens on the Collateral in existence on the date hereof except for
Permitted Liens for which priority is accorded under applicable law. The
filings and other actions specified on Schedule 3 constitute all of the
filings and other actions necessary to perfect all security interests granted
hereunder.

 

4.4                                 Grantor Information.  On the date hereof, Schedule 1 sets
forth (a) each Grantor’s jurisdiction of organization, (b) the
location of each Grantor’s chief executive office, (c) each 

 

12

 

Grantor’s
exact legal name as it appears on its organizational documents and (d) each
Grantor’s organizational identification number (to the extent a Grantor is
organized in a jurisdiction which assigns such numbers) and federal employer
identification number.

 

4.5                                 Collateral Locations.  On the date hereof, Schedule 4 sets
forth (a) each place of business of each Grantor (including its chief
executive office), (b) all locations where all Inventory and the Equipment
owned by each Grantor is kept, except with respect to Inventory and Equipment
with a fair market value of less than $100,000 (in the aggregate for all
Grantors) which may be located at other locations and (c) whether each
such Collateral location and place of business (including each Grantor’s chief
executive office) is owned or leased (and if leased, specifies the complete
name and notice address of each lessor). No Collateral is located outside the
United States or in the possession of any lessor, bailee, warehouseman or
consignee, except as indicated on Schedule 4.

 

4.6                                 Certain Property.  None of the Collateral constitutes, or is the
Proceeds of, (a) Farm Products, (b) Health Care Insurance Receivables
or (c) vessels, aircraft or any other property subject to any certificate
of title or other registration statute of the United States, any State or other
jurisdiction, except for personal vehicles owned by the Grantors and used by
employees of the Grantors in the ordinary course of business with an aggregate
fair market value of less than $100,000 (in the aggregate for all Grantors).

 

4.7                                 Investment Property.  (a) Except as set forth on Schedule 2,
the Pledged Equity pledged by each Grantor hereunder constitutes all the issued
and outstanding equity interests of each Issuer owned by such Grantor or, in
the case of any foreign Subsidiary, 65% of all issued and outstanding equity
interests of such foreign Subsidiary.

 

(b)                                 All of the Pledged Equity has been duly and validly issued
and, to the extent applicable, is fully paid and nonassessable.

 

(c)                                  Each of the Pledged Notes constitutes the legal, valid and
binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms (subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally), general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

 

(d)                                 Schedule 2
lists all Investment Property owned by each Grantor. Each Grantor is the record
and beneficial owner of, and has good and marketable title to, the Investment
Property pledged by it hereunder, free of any and all Liens or options in favor
of, or claims of, any other Person, except Permitted Liens.

 

4.8                                 Receivables.  (a) No material amount payable to such
Grantor under or in connection with any Receivable is evidenced by any
Instrument or Chattel Paper which has not been delivered to the Secured Party.

 

(b)                                 The amounts represented by such Grantor to the Secured Party
from time to time as owing to such Grantor in respect of the Receivables (to
the extent such representations are 

 

13

 

required
by any of the ISDA Documents) will at all such times be accurate in all
material respects.

 

4.9                                 Intellectual Property.  (a) Schedule 5 lists all
Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)                                 On the date hereof, all material Intellectual Property owned
by any Grantor is valid, subsisting, unexpired and enforceable and has not been
abandoned.

 

(c)                                  Except as set forth in Schedule 5, none of the
Intellectual Property material to a Grantor’s business is the subject of any
licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

 

(d)                                 Each Grantor owns and possesses or has a license or other
right to use all Intellectual Property as is necessary for the conduct of the
businesses of such Grantor, without any infringement upon rights of others
which could reasonably be expected to have a Material Adverse Effect.

 

4.10                           Depositary and Other Accounts.  All depositary and other accounts maintained
by each Grantor are described on Schedule 6 hereto, which description
includes for each such account the name of the Grantor maintaining such
account, the name, address, telephone and fax numbers of the financial
institution at which such account is maintained, the account number and the
account officer, if any, of such account.

 

Section 5                                               Covenants.

 

Each Grantor covenants and
agrees with the Secured Party that, from and after the date of this Agreement
until the Discharge of ISDA Obligations:

 

5.1                                 Delivery of Instruments, Certificated Securities and Chattel
Paper.  If any amount payable under or in connection
with any of the Collateral in excess of $100,000 (in the aggregate for all
Grantors) shall be or become evidenced by any Instrument, Certificated Security
or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall
be promptly delivered to the Secured Party, duly endorsed in a manner
satisfactory to the Secured Party, to be held as Collateral pursuant to this
Agreement. In the event that a Default or Potential Termination Event shall
have occurred and be continuing, upon the request of the Secured Party, any
Instrument, Certificated Security or Chattel Paper not theretofore delivered to
the Secured Party and at such time being held by any Grantor shall be promptly
(and in any event within two Business Days) delivered to the Secured Party,
duly endorsed in a manner satisfactory to the Secured Party, to be held as
Collateral pursuant to this Agreement.

 

5.2                                 Maintenance of Perfected Security Interest; Further
Documentation.  (a) Such Grantor shall maintain the
security interest created by this Agreement as a perfected security interest
having at least the priority described in Section 4.3 and shall
defend such security interest against the claims and demands of all Persons
whomsoever.

 

(b)                                 Such Grantor will furnish to the Secured Party from time to
time statements and schedules further identifying and describing the assets and
property of such Grantor and such 

 

14

 

other
reports in connection therewith as the Secured Party may reasonably request,
all in reasonable detail.

 

(c)                                  At any time and from time to time, upon the written request
of the Secured Party, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Secured Party
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including (i) filing any financing or continuation statements under the
UCC (or other similar laws) in effect in any jurisdiction with respect to the
security interests created hereby and (ii) in the case of Investment
Property and any other relevant Collateral, taking any actions necessary to
enable the Secured Party to obtain “control” (within the meaning of the
applicable UCC) with respect thereto and (iii) during the continuance of a
Default or Potential Termination Event, if requested by the Secured Party,
delivering, to the extent permitted by law, any original motor vehicle
certificates of title received by such Grantor from the applicable secretary of
state or other governmental authority after information reflecting the Secured
Party’s security interest has been recorded therein.

 

5.3                                 Changes in Locations, Name, etc.  Such Grantor shall
not, except upon 30 days’ prior written notice to the Secured Party and
delivery to the Secured Party of (a) all additional executed financing
statements and other documents reasonably requested by the Secured Party as to
the validity, perfection and priority of the security interests provided for
herein and (b) if applicable, a written supplement to Schedule 4
showing any additional location at which Inventory or Equipment shall be kept:

 

(i)                                     permit any of the Inventory
or Equipment to be kept at a location other than those listed on Schedule 4;
provided, that up to $100,000 (in the aggregate for all Grantors) in
fair market value of any such Inventory and Equipment may be kept at other
locations;

 

(ii)                                  change its jurisdiction of
organization or the location of its chief executive office from that specified
on Schedule 1 or in any subsequent notice delivered pursuant to this Section 5.3;
or

 

(iii)                               change its name, identity or
corporate structure.

 

5.4                                 Notices.  Such Grantor will advise the Secured Party
promptly upon knowledge by such Grantor thereof, in reasonable detail, of:

 

(a)                                  any Lien (other than Permitted Liens) on any of the
Collateral which would adversely affect the ability of the Secured Party to
exercise any of its remedies hereunder; and

 

(b)                                 the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the Liens created hereby.

 

5.5                                 Investment Property.  (a) If such Grantor shall become
entitled to receive or shall receive any certificate, option or rights in
respect of the equity interests of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any of the Pledged
Equity, 

 

15

 

or
otherwise in respect thereof, such Grantor shall accept the same as the agent
of the Secured Party, hold the same in trust for the Secured Party and deliver
the same forthwith to the Secured Party in the exact form received, duly
endorsed by such Grantor to the Secured Party, if required, together with an
undated instrument of transfer covering such certificate duly executed in blank
by such Grantor and with, if the Secured Party so requests, signature
guaranteed, to be held by the Secured Party, subject to the terms hereof, as
additional Collateral for the ISDA Obligations. Upon the occurrence and during
the continuance of a Default or Potential Termination Event, (i) any sums
paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Secured Party to be held by
it hereunder as additional Collateral for the ISDA Obligations, and (ii) in
case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect
to the Investment Property pursuant to the recapitalization or reclassification
of the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected Lien in
favor of the Secured Party, be delivered to the Secured Party to be held by it
hereunder as additional Collateral for the ISDA Obligations. Upon the
occurrence and during the continuance of a Default or Potential Termination
Event, if any sums of money or property so paid or distributed in respect of
the Investment Property shall be received by such Grantor, such Grantor shall,
until such money or property is paid or delivered to the Secured Party, hold
such money or property in trust for the Secured Party, segregated from other
funds of such Grantor, as additional Collateral for the ISDA Obligations.

 

(b)                                 Without the prior written consent of the Secured Party, such
Grantor will not (i) vote to enable, or take any other action to permit,
any Issuer to issue any equity interests of any nature or to issue any other
securities or interests convertible into or granting the right to purchase or
exchange for any equity interests of any nature of any Issuer, except, in each
case, as permitted by the Master ISDAs, (ii) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, the
Investment Property or Proceeds thereof (except pursuant to a transaction
expressly permitted by the Master ISDAs) other than, with respect to Investment
Property not constituting Pledged Equity or Pledged Notes, any such action
which is not prohibited by the Master ISDAs, (iii) create, incur or permit
to exist any Lien or option in favor of, or any claim of any Person with
respect to, any of the Investment Property or Proceeds thereof, or any interest
therein, except for Permitted Liens, or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Secured
Party to sell, assign or transfer any of the Investment Property or Proceeds
thereof, except, with respect to such Investment Property, shareholders’
agreements entered into by such Grantor with respect to Persons in which such
Grantor maintains an ownership interest of 50% or less.

 

(c)                                  In the case of each Grantor which is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement relating
to the Investment Property issued by it and will comply with such terms insofar
as such terms are applicable to it, (ii) it will notify the Secured Party
promptly in writing of the occurrence of any of the events described in Section 5.5(a) with
respect to the Investment Property issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to such Grantor with respect to all
actions that may be required of it pursuant to Section 6.3(c) or
6.7 regarding the Investment Property issued by it.

 

5.6                                 Receivables.  (a) Other than in the ordinary course of
business consistent with its past practice and in amounts which are not
material to such Grantor, such Grantor will not (i) 

 

16

 

grant
any extension of the time of payment of any Receivable other than extensions
which such Grantor deems reasonable and consistent with prudent business
practice, (ii) compromise or settle any Receivable for less than the full
amount thereof, (iii) release, wholly or partially, any Person liable for
the payment of any Receivable, (iv) allow any credit or discount
whatsoever on any Receivable or (v) amend, supplement or modify any
Receivable in any manner that could adversely affect the value thereof.

 

(b)                                 Such Grantor will deliver to the Secured Party a copy of each
material demand, notice or document received by it that questions or calls into
doubt the validity or enforceability of more than 5% of the aggregate amount of
the then outstanding Receivables for all Grantors.

 

5.7                                 Intellectual Property.  (a) Such Grantor (either itself or
through licensees) will (i) continue to use each Trademark material to its
business in order to maintain such Trademark in full force free from any claim
of abandonment for non-use, (ii) maintain as in the past the quality of
products and services offered under such Trademark, (iii) use such
Trademark with the appropriate notice of registration and all other notices and
legends required by applicable law, (iv) not adopt or use any mark which
is confusingly similar or a colorable imitation of such Trademark unless the
Secured Party shall obtain a perfected security interest in such mark pursuant
to this Agreement, and (v) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark
may become invalidated or impaired in any way except, in the case of each of
clauses (i) through (v) of this Section 5.7(a), to the extent
that it could not reasonably be expected to cause a Material Adverse Effect.

 

(b)                                 Such Grantor (either itself or through licensees) will not
do any act, or omit to do any act, whereby any Patent material to its business
may become forfeited, abandoned or dedicated to the public.

 

(c)                                  Such Grantor (either itself or through licensees) (i) will
employ each Copyright material to its business and (ii) will not (and will
not permit any licensee or sublicensee thereof to) do any act or knowingly omit
to do any act whereby any material portion of such Copyrights may become
invalidated or otherwise impaired. Such Grantor will not (either itself or
through licensees) do any act whereby any material portion of such Copyrights
may fall into the public domain.

 

(d)                                 Such Grantor (either itself or through licensees) will not
do any act that knowingly infringes the intellectual property rights of any
other Person.

 

(e)                                  Such Grantor will notify the Secured Party promptly if it
knows that any application or registration relating to any material
Intellectual Property owned by a Grantor or material to a Grantor’s business
may become forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal
in any country) regarding, such Grantor’s ownership of, or the validity of, any
material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

 

17

 

(f)                                    Whenever such Grantor, either by itself or through any
agent, employee, licensee or designee, shall file an application for the
registration of any Intellectual Property with the United States Patent and
Trademark Office, the United States Copyright Office or any similar office or
agency in any other country or any political subdivision thereof, such Grantor
shall report such filing to the Secured Party concurrently with the next
delivery of financial statements of the applicable MX Company pursuant to Part 12
of the Schedules to the Master ISDAs. Upon the request of the Secured Party,
such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Secured Party may request
to evidence the Secured Party’s security interest in any Copyright, Patent or
Trademark and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby.

 

(g)                                 Such Grantor will take all reasonable and necessary steps to
maintain and pursue each application (and to obtain the relevant registration)
and to maintain each registration of all material Intellectual Property owned
by it.

 

(h)                                 In the event that any material Intellectual Property owned
by a Grantor or material to a Grantor’s business is infringed upon or
misappropriated or diluted by a third party, such Grantor shall (i) take
such actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the
Secured Party after it learns thereof and, to the extent, in its reasonable
judgment, such Grantor determines it appropriate under the circumstances, sue
for infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution.  If Grantor
fails to take action under clause (i) or (ii) for one hundred twenty
(120) days after Grantor becomes aware of such infringement, misappropriation
or dilution, the Secured Party is hereby authorized to take action on behalf of
the Grantor to the extent the infringement, misappropriation or dilution would
have an adverse effect on the Secured Party or the Secured Party’s interests in
the Collateral hereunder.

 

5.8                                 Counterparty Undertakings.

 

(a)                                  Each Grantor shall keep the Secured Party informed of all
circumstances bearing upon any material potential claim under or with respect
to the Material Contracts and the Counterparty Undertakings and such Grantor
shall not, without the prior written consent of the Secured Party, (i) waive
any of its rights or remedies under any Material Contract with respect to any
of the Counterparty Undertakings in excess of $100,000, (ii) settle,
compromise or offset any amount payable by the counterparties to such Grantor
under any Material Contract in excess of $100,000 or (iii) amend or
otherwise modify any Material Contract in any manner which is adverse to the
interests of the Secured Party.

 

(b)                                 Each Grantor shall perform and observe all the terms and
conditions of each Material Contract to be performed by it, maintain each
Material Contract in full force and effect, enforce in all material respects
each Material Contract in accordance with its terms and take all such action to
such end as may from time to time be reasonably requested by the Secured Party,
except where the Grantor demonstrates that the failure to do so would not
result in a loss or losses to such Grantor or an impairment to the value of the
Collateral that in the aggregate exceeds $3,500,000; provided that the
foregoing exception shall not apply to any Material 

 

18

 

Contract
that is necessary for the conduct of the business of the Grantors taken as a
whole as contemplated by the ISDA Documents.

 

(c)                                  Anything herein to the contrary notwithstanding, (i) each
applicable Grantor shall remain liable under each Material Contract to the
extent set forth therein to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (ii) the
exercise by the Secured Party of any of its rights hereunder shall not release
any Grantor from any of its duties or obligations under any Material Contract
and (iii) the Secured Party shall not have any obligation or liability
under any Material Contract by reason of this Agreement, nor shall the Secured
Party be obligated to perform any of the obligations or duties of any Grantor
thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

 

5.9                                 Depositary and Other Deposit Accounts.  No Grantor shall
open new depositary or other deposit accounts unless such Grantor shall have
received the Secured Party’s prior written consent to open any such new deposit
accounts. The Grantors shall deliver to the Secured Party a revised version of Schedule
6 showing any changes thereto within 5 days of any such change. Each
Grantor hereby authorizes the financial institutions at which such Grantor
maintains a deposit account to provide the Secured Party with such information
with respect to such deposit account as the Secured Party may from time to time
reasonably request, and each Grantor hereby consents to such information being
provided to the Secured Party. Each Grantor will, upon the Secured Party’s
request, cause each financial institution at which such Grantor maintains a
depositary or other deposit account to enter into a bank agency or other
similar agreement with the Secured Party and such Grantor, in form and
substance satisfactory to the Secured Party, in order to give the Secured Party
“control” (as defined in the UCC) of such account. Each Grantor shall direct
all Account Debtors to make all payments on the Accounts directly to a Lockbox
Account designated by the Secured Party in its sole discretion. If any Grantor
or any director, officer, employee, agent of such Grantor, or any other Person
acting for or in concert with such Grantor shall receive any monies, checks, notes,
drafts or other payments relating to or as proceeds of Accounts or other
Collateral, such Grantor and each such Person shall receive all such items in
trust for, and as the sole and exclusive property of, the Secured Party and,
promptly (and in any event within one Business Day) upon receipt thereof, shall
remit the same (or cause the same to be remitted) in kind to a Lockbox Account
designated by the Secured Party in its sole discretion, subject to any rights
of the MX Companies to use such proceeds pursuant to the Master ISDAs. The
Grantors, jointly and severally, agree to pay all fees, costs and expenses in
connection with opening and maintaining each Account, control agreements with
respect thereto, and depositing for collection by the Secured Party any check
or other item of payment received by the Secured Party on account of the ISDA
Obligations. All of such fees, costs and expenses shall constitute ISDA
Obligations hereunder and shall be payable to the Secured Party by the Grantors
upon demand. All checks, drafts, instruments and other items of payment or
proceeds of Collateral shall be endorsed by the applicable Grantor to the
Secured Party, and, if that endorsement of any such item shall not be made for
any reason, the Secured Party is hereby irrevocably authorized to endorse the
same on such Grantor’s behalf for the purpose of this section, each Grantor
irrevocably hereby makes, constitutes and appoints the Secured Party (and all
Persons designated by the Secured Party for that purpose) as such Grantor’s
true and lawful attorney and agent-in-fact (a) to endorse such Grantor’s
name upon said items of payment and/or proceeds of Collateral and upon any
Chattel Paper, document, Instrument, invoice or similar document or agreement
relating to any Account of such Grantor or 

 

19

 

goods
pertaining thereto; (b) to take control in any manner of any item of
payment or proceeds thereof; and (c) while a Default or Potential
Termination Event has occurred and is continuing, to have access to any lock
box or postal box into which any of such Grantor’s mail is deposited, and open
and process all mail addressed to the such Grantor and deposited therein. All
amounts received in any Lockbox Account shall be swept at the end of each day
to the applicable Party A Sub Account until the Discharge of ISDA
Obligations.  In no event shall any
amount be applied unless and until such amount shall have been credited in
immediately available funds to the applicable Party A Sub Account or applicable
Operating Account with the applicable Master ISDA.

 

5.10                           Other Matters.

 

(a)                                  If any Grantor shall cause to be delivered Inventory or
other property in excess of $100,000 in fair market value to any bailee after
the Closing Date, such Grantor shall use reasonable efforts to cause such
bailee to sign a Collateral Access Agreement. Such requirement may be waived at
the option of the Secured Party.  If any
Grantor shall lease any real property or facilities and the value of property
of such Grantor located at such leased real property is in excess of $100,000
in fair market value after the Closing Date, such Grantor shall use reasonable
efforts to cause the landlord in respect of such leased property or facilities
to sign a Collateral Access Agreement. 
Such requirement may be waived at the option of the Secured Party.

 

(b)                                 Each Grantor authorizes the Secured Party to, at any time
and from time to time, file financing statements, continuation statements, and
amendments thereto that describe the Collateral as “all assets” of each
Grantor, or words of similar effect, and which contain any other information
required pursuant to the UCC for the sufficiency of filing office acceptance of
any financing statement, continuation statement, or amendment, and each Grantor
agrees to furnish any such information to the Secured Party promptly upon
request. Any such financing statement, continuation statement, or amendment may
be signed by the Secured Party on behalf of any Grantor and may be filed at any
time in any jurisdiction.

 

(c)                                  Each Grantor shall, at any time and from time to time, take
such steps as the Secured Party may reasonably request for the Secured Party (i) to
obtain an acknowledgement, in form and substance reasonably satisfactory to the
Secured Party, of any bailee having possession of any of the Collateral,
stating that the bailee holds such Collateral for the Secured Party, (ii) to
obtain “control” of any letter-of-credit rights, or electronic chattel paper
(as such terms are defined by the UCC with corresponding provisions thereof
defining what constitutes “control” for such items of Collateral), with any
agreements establishing control to be in form and substance reasonably
satisfactory to the Secured Party, and (iii) otherwise to insure the continued
perfection and priority of the Secured Party’s security interest in any of the
Collateral and of the preservation of its rights therein. If any Grantor shall
at any time, acquire a “commercial tort claim” (as such term is defined in the
UCC) in excess of $100,000, such Grantor shall promptly notify the Secured
Party thereof in writing and supplement Schedule 7, therein providing a
reasonable description and summary thereof, and upon delivery thereof to the
Secured Party, such Grantor shall be deemed to thereby grant to the Secured
Party (and such Grantor hereby grants to the Secured Party) a security interest
and lien in and to such commercial tort claim and all proceeds thereof, all
upon the terms of and governed by this Agreement.

 

20

 

(d)                                 Without limiting the generality of the foregoing, if any
Grantor at any time holds or acquires an interest in any electronic chattel
paper or any “transferable record”, as that term is defined in Section 201
of the federal Electronic Signatures in Global and National Commerce Act, or in
Section 16 of the Uniform Electronic Transactions Act as in effect in any
relevant jurisdiction, such Grantor shall promptly notify the Secured Party
thereof and, at the request of the Secured Party, shall take such action as the
Secured Party may reasonably request to vest in the Secured Party “control”
under Section 9-105 of the UCC of such electronic chattel paper or control
under Section 201 of the federal Electronic Signatures in Global and
National Commerce Act or, as the case may be, Section 16 of the Uniform
Electronic Transactions Act, as so in effect in such jurisdiction, of such
transferable record. The Secured Party agrees with the Grantors that the
Secured Party will arrange, pursuant to procedures satisfactory to the Secured
Party and so long as such procedures will not result in the Secured Party’s
loss of control, for the Grantors to make alterations to the electronic chattel
paper or transferable record permitted under Section 9-105 of the UCC or,
as the case may be, Section 201 of the federal Electronic Signatures in
Global and National Commerce Act or Section 16 of the Uniform Electronic
Transactions Act for a party in control to make without loss of control, unless
a Potential Termination Event has occurred and is continuing or would occur
after taking into account any action by any Grantor with respect to such
electronic chattel paper or transferable record.

 

Section 6                                               Remedial Provisions.

 

6.1                                 Certain Matters Relating to Receivables.  (a) Each
Grantor shall keep proper books and records in which full, true and correct
entries are made of all dealings and transactions in relation to its business
and activities in accordance with GAAP. 
Each Grantor shall permit the Secured Party or any representative
thereof, upon reasonable prior notice, to visit and inspect its properties, to
examine, audit and make extracts from its books and records, and to discuss its
affairs, finances and condition with its officers and independent accountants,
all at such reasonable times and as often as reasonably requested.  At any time and from time to time after the
occurrence and during the continuance of a Default or Potential Termination
Event, upon the Secured Party’s request and at the expense of the relevant
Grantor, such Grantor shall use reasonable efforts to cause independent public
accountants or others satisfactory to the Secured Party to furnish to the
Secured Party reports showing reconciliations and verifications of the
Receivables.

 

(b)                                 The Secured Party hereby authorizes each Grantor to collect
such Grantor’s Receivables, subject to Section 5.9, and the Secured
Party may curtail or terminate such authority at any time after the occurrence
and during the continuance of a Default or Potential Termination Event. If
required by the Secured Party at any time after the occurrence and during the
continuance of an Event of Default or a Termination Event, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and,
in any event, within two (2) Business Days) deposited by such Grantor in
the exact form received, duly endorsed by such Grantor to the Secured Party if
required, in a Lockbox Account maintained under the sole dominion and control
of the Secured Party, subject to withdrawal by the Secured Party as provided in
Section 6.5, and (ii) until so turned over, shall be held by
such Grantor in trust for the Secured Party, segregated from other funds of
such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied
by a report identifying in reasonable detail the nature and source of the
payments included in the deposit.

 

21

 

(c)                                  At any time and from time to time after the occurrence and
during the continuance of a Default or Potential Termination Event, at the
Secured Party’s request, each Grantor shall deliver to the Secured Party all
original and other documents evidencing, and relating to, the agreements and
transactions which gave rise to the Receivables, including all original orders,
invoices and receipts.

 

(d)                                 Each Grantor hereby irrevocably authorizes and empowers the
Secured Party, in the Secured Party’s sole discretion, at any time that after
the occurrence and during the continuance of an Event of Default or a
Termination Event and after the Secured Party has provided such Grantor with
three (3) Business Days’ prior notice, to assert, either directly or on
behalf of such Grantor, any claim such Grantor may from time to time have
against the counterparties under or with respect to the Contracts and to
receive and collect any and all damages, awards and other monies resulting
therefrom and to apply the same to the ISDA Obligations. Each Grantor hereby
irrevocably makes, constitutes and appoints the Secured Party as its true and
lawful attorney in fact for the purpose of enabling the Secured Party to assert
and collect such claims and to apply such monies in the manner set forth above,
which appointment, being coupled with an interest, is irrevocable.

 

6.2                                 Communications with Obligors; Grantors Remain Liable.  (a) The
Secured Party in its own name or in the name of others may at any time after
the occurrence and during the continuance of a Default or Potential Termination
Event and after the Secured Party has provided such Grantor with three (3) Business
Days’ prior notice communicate with obligors under the Receivables to verify
with them to the Secured Party’s satisfaction the existence, amount and terms
of any Receivables.

 

(b)                                 Upon the request of the Secured Party at any time after the
occurrence and during the continuance of a Default or Potential Termination
Event, each Grantor shall notify obligors on the Receivables that the
Receivables have been assigned to the Secured Party and that payments in
respect thereof shall be made directly to the Secured Party.

 

(c)                                  Anything herein to the contrary notwithstanding, each
Grantor shall remain liable in respect of each of the Receivables to observe
and perform all the conditions and obligations to be observed and performed by
it thereunder, all in accordance with the terms of any agreement giving rise
thereto. The Secured Party shall not have any obligation or liability under any
Receivable (or any agreement giving rise thereto) by reason of or arising out
of this Agreement or the receipt by the Secured Party of any payment relating
thereto, nor shall the Secured Party be obligated in any manner to perform any
of the obligations of any Grantor under or pursuant to any Receivable (or any
agreement giving rise thereto), to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

 

(d)                                 For the purpose of enabling the Secured Party to exercise
rights and remedies under this Agreement after the occurrence and during the
continuation of a Default or Potential Termination Event, each Grantor hereby
grants to the Secured Party an irrevocable, nonexclusive license (exercisable
without payment of royalty or other compensation to such Grantor) to use, 

 

22

 

license
or sublicense any Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or
printout thereof.

 

6.3                                 Investment Property.  (a) Unless an Event of Default or a
Termination Event shall have occurred and be continuing and the Secured Party
shall have given notice to the relevant Grantor of the Secured Party’s intent
to exercise its corresponding rights pursuant to Section 6.3(b),
each Grantor shall be permitted to receive all cash dividends and distributions
paid in respect of the Pledged Equity and all payments made in respect of the
Pledged Notes, to the extent permitted in the Master ISDAs, and to exercise all
voting and other rights with respect to the Investment Property; provided,
that no vote shall be cast or other right exercised or action taken which could
impair the Collateral or which would be inconsistent with or result in any
violation of any provision of the ISDA Documents or any other Related
Agreement.

 

(b)                                 If a Default or Potential Termination Event shall occur and
be continuing and the Secured Party shall give notice of its intent to exercise
such rights to the relevant Grantor or Grantors, (i) the Secured Party
shall have the right to receive any and all cash dividends and distributions,
payments or other Proceeds paid in respect of the Investment Property and make
application thereof to the ISDA Obligations in accordance with Section 6.5
hereof, and (ii) any or all of the Investment Property shall be registered
in the name of the Secured Party or its nominee, and the Secured Party or its
nominee may thereafter exercise (x) all voting and other rights pertaining
to such Investment Property at any meeting of holders of the equity interests
of the relevant Issuer or Issuers or otherwise and (y) any and all rights
of conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
structure of any Issuer, or upon the exercise by any Grantor or the Secured
Party of any right, privilege or option pertaining to such Investment Property,
and in connection therewith, the right to deposit and deliver any and all of
the Investment Property with any committee, depositary, transfer agent,
registrar or other designated agency upon such terms and conditions as the
Secured Party may determine), all without liability except to account for
property actually received by it, but the Secured Party shall have no duty to
any Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

 

(c)                                  Each Grantor hereby authorizes and instructs each Issuer of
any Investment Property pledged by such Grantor hereunder over which it has
control or the ability to influence to (i) comply with any instruction
received by it from the Secured Party in writing that (x) states that a
Default or Potential Termination Event has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that each
Issuer shall be fully protected in so complying and (ii) unless otherwise
expressly permitted hereby, pay any dividends, distributions or other payments
with respect to the Investment Property directly to the Secured Party.

 

6.4                                 Proceeds to be Turned Over to the Secured Party.  In addition to the
rights of the Secured Party specified in Section 6.1 with respect
to payments of Receivables, if a Default or 

 

23

 

Potential
Termination Event shall occur and be continuing, all Proceeds received by any
Grantor consisting of cash, checks and other cash equivalent items shall be
held by such Grantor in trust for the Secured Party, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be
turned over to the Secured Party in the exact form received by such Grantor
(duly endorsed by such Grantor to the Secured Party, if required). All Proceeds
received by the Secured Party hereunder shall be held by the Secured Party in a
collateral account maintained under its sole dominion and control. All
Proceeds, while held by the Secured Party in any collateral account (or by such
Grantor in trust for the Secured Party) established pursuant hereto, shall
continue to be held as collateral security for the ISDA Obligations and shall
not constitute payment thereof until applied as provided in Section 6.5.

 

6.5                                 Application of Proceeds.  At such intervals as may be agreed upon by
the applicable MX Company and the Secured Party, or, if a Default or Potential
Termination Event shall have occurred and be continuing, at any time at the
Secured Party’s election, the Secured Party may apply all or any part of
Proceeds from the sale of, or other realization upon, all or any part of the Collateral
in payment of the ISDA Obligations in such order as the Secured Party shall
determine in its discretion. Any part of such funds which the Secured Party
elects not so to apply and deems not required as collateral security for the
ISDA Obligations shall be paid over from time to time by the Secured Party to
the applicable Grantor or to whomsoever may be lawfully entitled to receive the
same. Any balance of such Proceeds remaining after the Discharge of ISDA
Obligations shall be paid over to the applicable Grantor or to whomsoever may
be lawfully entitled to receive the same. In the absence of a specific
determination by the Secured Party, the Proceeds from the sale of, or other
realization upon, all or any part of the Collateral in payment of the ISDA
Obligations shall be applied in the following order:

 

FIRST, to the payment of all fees, costs,
expenses and indemnities of the Secured Party and any other ISDA Obligations
owing to the Secured Party in respect of sums advanced by the Secured Party to
preserve the Collateral or to preserve its security interest in the Collateral,
until paid in full;

 

SECOND, to the payment of all of the ISDA
Obligations including accrued and unpaid interest owing to the Secured Party
until paid in full; and

 

THIRD, to the payment of any remaining
Proceeds, if any, to whomever may be lawfully entitled to receive such amounts.

 

6.6                                 Code and Other Remedies.  If an Event of Default or a Termination Event
shall occur and be continuing, the Secured Party may exercise, in addition to
all other rights and remedies granted to them in this Agreement and in any
other instrument or agreement securing, evidencing or relating to the ISDA
Obligations, all rights and remedies of a secured party under the UCC or any
other applicable law. Without limiting the generality of the foregoing, the
Secured Party, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law
referred to below) to or upon any Grantor or any other Person (all and each of
which demands, defenses, advertisements and notices are hereby waived), may in
such circumstances forthwith collect, receive, 

 

24

 

appropriate
and realize upon the Collateral, or any part thereof, and/or may forthwith
sell, lease, assign, give options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any
exchange, broker’s board or office of the Secured Party or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery with assumption of any
credit risk. The Secured Party shall have the right upon any such public sale
or sales, and, to the extent permitted by law, upon any such private sale or
sales, to purchase the whole or any part of the Collateral so sold, free of any
right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Secured Party’s
request, to assemble the Collateral and make it available to the Secured Party
at places which the Secured Party shall reasonably select, whether at such
Grantor’s premises or elsewhere.  The
Secured Party shall apply the net proceeds of any action taken by it pursuant
to this Section 6.6, after deducting all reasonable costs and
expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Secured Party hereunder, including reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the
ISDA Obligations, in accordance with Section 6.5 hereof, and only
after such application and after the payment by the Secured Party of any other
amount required by any provision of law, need the Secured Party account for the
surplus, if any, to any Grantor. To the extent permitted by applicable law,
each Grantor waives all claims, damages and demands it may acquire against the
Secured Party arising out of the exercise by them of any rights hereunder. If
any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at
least ten (10) days before such sale or other disposition.

 

6.7                                 Private Sales of Pledged Equity.

 

(a)                                  Each Grantor recognizes that the Secured Party may be unable
to effect a public sale of any or all the Pledged Equity, by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers which will be obliged to agree,
among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Secured Party
shall be under no obligation to delay a sale of any of the Pledged Equity for
the period of time necessary to permit the Issuer thereof to register such
securities or other interests for public sale under the Securities Act, or
under applicable state securities laws, even if such Issuer would agree to do
so.

 

(b)                                 Each Grantor agrees to use its best efforts to do or cause
to be done all such other acts as may be necessary to make such sale or sales
of all or any portion of the Pledged Equity pursuant to this Section 6.7
valid and binding and in compliance with applicable law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7
will cause irreparable injury to the Secured Party, that the Secured Party has
no adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section 6.7 shall be
specifically enforceable against such Grantor, and such Grantor hereby 

 

25

 

waives
and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Default or Potential
Termination Event has occurred under the Master ISDAs.

 

6.8                                 Waiver; Deficiency.  Each Grantor waives and agrees not to assert
any rights or privileges which it may acquire under Section 9-626 of the
UCC. Each Grantor shall remain liable for any deficiency if the proceeds of any
sale or other disposition of the Collateral are insufficient to pay the ISDA Obligations
in full and the fees and disbursements of any attorneys employed by the Secured
Party to collect such deficiency.

 

6.9                                 Collateral Access.  The Secured Party shall be granted access to
the Grantors’ records and billings systems and shall be granted, at the
Grantors’ expense, licenses (including software updates) to allow the Secured
Party to realize the value of all Contracts. 
In no event shall the Secured Party disclose to any third parties any of
the Grantors’ technology infrastructure without the written consent of the
applicable Grantor.

 

Section 7                                               Secured Party.

 

7.1                                 Secured Party’s Appointment as Attorney-in-Fact, etc.  (a) Each
Grantor hereby irrevocably constitutes and appoints the Secured Party and any
officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, to take any and
all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor
hereby gives the Secured Party the power and right, on behalf of and at the
expense of such Grantor, without notice to or assent by such Grantor, to do any
or all of the following:

 

(i)                                     in the name of such Grantor
or its own name, or otherwise, take possession of and endorse and collect any
checks, drafts, notes, acceptances or other instruments for the payment of
moneys due under any Receivable or with respect to any other Collateral and
file any claim or take any other action or proceeding in any court of law or equity
or otherwise deemed appropriate by the Secured Party for the purpose of
collecting any and all such moneys due under any Receivable or with respect to
any other Collateral whenever payable;

 

(ii)                                  in the case of any
Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Secured Party may request
to evidence the Secured Party’s security interest in such Intellectual Property
and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby;

 

(iii)                               discharge Liens levied or
placed on or threatened against the Collateral, and effect any repairs or
insurance called for by the terms of this Agreement and pay all or any part of
the premiums therefor and the costs thereof;

 

26

 

(iv)                              execute, in connection with
any sale provided for in Section 6.6 or 6.7, any
endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral; and

 

(v)                                 (1) direct any party
liable for any payment under any of the Collateral to make payment of any and
all moneys due or to become due thereunder directly to the Secured Party or as
the Secured Party shall direct; (2) ask or demand for, collect, and receive
payment of and receipt for, any and all moneys, claims and other amounts due or
to become due at any time in respect of or arising out of any Collateral; (3) sign
and endorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral; (4) commence
and prosecute any suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect the Collateral or any portion
thereof and to enforce any other right in respect of any Collateral; (5) defend
any suit, action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as
the Secured Party may deem appropriate; (7) assign any Copyright, Patent
or Trademark, throughout the world for such term or terms, on such conditions,
and in such manner, as the Secured Party shall in its sole discretion
determine; (8) vote any right or interest with respect to any Investment
Property; (9) order good standing certificates and conduct lien searches
in respect of such jurisdictions or offices as the Secured Party may deem
appropriate; and (10) generally sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Secured Party were the absolute owner thereof for
all purposes, and do, at the Secured Party’s option and such Grantor’s expense,
at any time, or from time to time, all acts and things which the Secured Party
deems necessary to protect, preserve or realize upon the Collateral and the
Secured Party’s security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to
the contrary notwithstanding, the Secured Party agrees that it will not
exercise any rights under the power of attorney provided for in this Section 7.1(a) unless
a Potential Termination Event shall have occurred and be continuing.

 

(b)                                 If any Grantor fails to perform or comply with any of its
agreements contained herein, the Secured Party, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

 

(c)                                  Each Grantor hereby ratifies all that such attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations
and agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.

 

7.2                                 Duty of Secured Party.  The Secured Party’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession shall be to deal with it in the same manner as the Secured Party
deals with similar property for its own account. Neither the Secured Party nor
any of their respective officers, directors, employees or agents shall be

 

27

 

liable
for any failure to demand, collect or realize upon any of the Collateral or for
any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or any other Person
or to take any other action whatsoever with regard to the Collateral or any
part thereof. The powers conferred on the Secured Party hereunder are solely to
protect the Secured Party’s interests in the Collateral and shall not impose
any duty upon the Secured Party to exercise any such powers. The Secured Party
shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder.

 

Section 8                Miscellaneous.

 

8.1           Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
writing signed by the MX Companies and the Secured Party.

 

8.2           Notices.  All notices, requests and demands to or upon
the Secured Party or any Grantor hereunder shall be effected in the manner
provided for in Section 12 of the Master ISDAs and each Grantor
hereby appoints Holdings as its agent to receive notices hereunder.

 

8.3           Indemnification by Grantors.  Each Grantor hereby agrees, on a joint and
several basis, to indemnify, exonerate and hold the Secured Party and each of
the officers, directors, employees, Affiliates and agents of the Secured Party
(each a “Sempra Party”) free and harmless from and against any and all
actions, causes of action, suits, losses, liabilities, damages and expenses,
including attorneys’ fees and disbursements (collectively, the “Indemnified
Liabilities”), incurred by Sempra Parties or any of them as a result of, or
arising out of, or relating to (a) any tender offer, merger, purchase of
equity interests, purchase of assets (including the related transactions) or
other similar transaction with respect to the MX Companies or the Collateral, (b) the
use, handling, release, emission, discharge, transportation, storage, treatment
or disposal of any hazardous substance at any property owned or leased by any
Grantor or any Subsidiary, (c) any violation of any Environmental Laws
with respect to conditions at any property owned or leased by any Grantor or
any Subsidiary or the operations conducted thereon, (d) the investigation,
cleanup or remediation of offsite locations at which any Grantor or any
Subsidiary or their respective predecessors are alleged to have directly or
indirectly disposed of hazardous substances or (e) the execution,
delivery, performance or enforcement of this Agreement or any other ISDA
Document by any Sempra Party, except to the extent any such Indemnified
Liabilities result from the applicable Sempra Party’s own gross negligence or
willful misconduct as determined by a court of competent jurisdiction. If and
to the extent that the foregoing undertaking may be unenforceable for any
reason, each Grantor hereby agrees to make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law. All obligations provided for in this Section 8.3
shall survive the Discharge of ISDA Obligations.

 

8.4           Enforcement Expenses.  (a) Each Grantor agrees, on a joint and
several basis, to pay or reimburse on demand the Secured Party for all
reasonable out-of-pocket costs and expenses (including Legal Costs of counsel
for the Secured Party) incurred in collecting against 

 

28

 

any
Grantor under the guaranty contained in Section 2 or otherwise
enforcing or preserving any rights under this Agreement and any other ISDA
Document.

 

(b)           Each Grantor agrees to pay, and to save the Secured Party
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this Agreement.

 

(c)           The agreements in this Section 8.4 shall survive
the Discharge of ISDA Obligations.

 

8.5           Captions.  Section captions used in this Agreement
are for convenience only and shall not affect the construction of this
Agreement.

 

8.6           Nature of Remedies.  All ISDA Obligations of each Grantor and
rights of the Secured Party expressed herein shall be in addition to and not in
limitation of those provided by applicable law. No failure to exercise and no
delay in exercising, on the part of the Secured Party, 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.

 

8.7           Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts
and each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement. Receipt
by telecopy or portable document format of any executed signature page to
this Agreement shall constitute effective delivery of such signature page.

 

8.8           Severability.  The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.

 

8.9           Entire Agreement.  This Agreement, together with the other ISDA
Documents and the Intercreditor Agreement, embody the entire agreement and
understanding among the parties hereto and supersede all prior or
contemporaneous representations, agreements and understandings of such Persons,
verbal or written, relating to the subject matter hereof and thereof and any
prior arrangements made with respect to the payment by any Grantor of (or any
indemnification for) any fees, costs or expenses payable to or incurred (or to
be incurred) by or on behalf of the Secured Party.

 

8.10         Successors; Assigns.  This Agreement shall be binding upon the
Grantors, the Secured Party and their respective successors and assigns, and
shall inure to the benefit of the Grantors, the Secured Party and the permitted
successors and assigns of the Secured Party. No other Person shall be a direct
or indirect legal beneficiary of, or have any direct or indirect cause of
action or claim in connection with, this Agreement or any of the other Related
Agreements. No Grantor may assign or transfer any of its rights or obligations
under this Agreement without the prior written consent of the Secured Party.

 

29

 

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

 

8.12         Consent
to Arbitration.

 

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

 

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

 

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

 

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

 

30

 

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

 

8.14         Set-off.  Each Grantor agrees that the Secured Party
has all rights of set-off and bankers’ lien provided by applicable law, and in
addition thereto, each Grantor agrees that at any time a Default or Potential
Termination Event exists, the Secured Party may apply to the payment of any
ISDA Obligations, whether or not then due, any and all balances, credits,
deposits, accounts or moneys of such Grantor then or thereafter with the
Secured Party.

 

8.15         Certain Understandings.  Each party to this Agreement acknowledges
that the Secured Party will engage in transactions with Holdings and its
Subsidiaries pursuant to the Master ISDAs. 
Neither this Agreement nor the Master ISDAs shall preclude
the Secured Party from
engaging in transactions of a nature like the transactions contemplated by the
Master ISDAs with any other Person. 
Without limiting the foregoing, each party acknowledges that the Secured Party is engaged in,
among other things, dealing in fuel, and power and related commodities for its
own account in the U.S. wholesale fuel and power markets, and manages positions
in fuel and power and related commodities for others.  The Secured
Party may (i) take actions under the Master ISDAs that may be
different than the actions the Secured
Party takes for its own account or for the account of others, even
though the circumstances may be the same or similar and (ii) effect
transactions with counterparties that are also counterparties to other
transactions in fuel and/or power or related commodities with the Secured Party
or for which the Secured Party is acting in an agency capacity.  The Secured Party and/or its Affiliates may
from time to time take proprietary positions and/or make a market in commodities
and/or instruments identical or economically related to the transactions
contemplated by the Master ISDAs, or may have an investment banking or other
commercial relationship with and access to information from the issuer(s) of
financial instruments or other interests underlying such transactions during
the term of the Master ISDAs.  The
Secured Party and/or its Affiliates may also undertake lawful proprietary
activities, including hedging transactions related to the initiation or
termination of a transaction, that may adversely affect the market price, rate,
index or other market factor(s) underlying the transactions contemplated
by the Master ISDAs and consequently the value of the transactions contemplated
by the Master ISDAs.  The parties
acknowledge that the relationship between the Secured Party and Holdings and
its Subsidiaries is a commercial and not a fiduciary relationship and that
neither the Master ISDAs nor this Agreement shall limit in any manner the
ability of the Secured Party to enter into any transaction of any nature with
any other Person.

 

8.16         Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Related Agreements to which it is
a party;

 

(b)           no joint venture is created hereby or by the other ISDA
Document or otherwise exists by virtue of the transactions contemplated hereby
among the Secured Party and the Grantors or among any of them.

 

31

 

8.17         Additional Grantors.  Each Person that is required to become a
party to this Agreement pursuant the Master ISDAs or otherwise shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such
Person of a Guarantee and Collateral Agreement Joinder.

 

8.18         Releases.  (a) Upon the Discharge of ISDA
Obligations, the Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Secured Party and each Grantor hereunder shall
terminate, all without delivery of any instrument or performance of any act by
any party, and all rights to the Collateral shall revert to the Grantors. At
the request and sole expense of any Grantor following any such termination, the
Secured Party shall deliver to the Grantors any Collateral held by the Secured
Party hereunder, and execute and deliver to the Grantors such documents as the
Grantors shall reasonably request to evidence such termination and release.

 

(b)           If any of the Collateral shall be sold, transferred or
otherwise disposed of by any Grantor in a transaction permitted by the ISDA
Documents, then the Secured Party, at the request and sole expense of such
Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens
created hereby on such Collateral. At the request and sole expense of the MX
Companies, a Subsidiary Grantor shall be released from its obligations
hereunder in the event that all the equity interests of such Subsidiary Grantor
shall be sold, transferred or otherwise disposed of in a transaction permitted
by the ISDA Documents and the other Related Agreements; provided, that
the relevant MX Company shall have delivered to the Secured Party, with
reasonable notice prior to the date of the proposed release, a written request
for release identifying the relevant Subsidiary Grantor and the terms of the
sale or other disposition in reasonable detail, including the price thereof and
any expenses in connection therewith, together with a certification by such MX
Company stating that such transaction is in compliance with the ISDA Documents
and the other Related Agreements.

 

(c)           Promptly following the consummation of a merger that does
not constitute a Default or Potential Termination Event under Section 5
of the Master ISDAs, the Secured Party shall deliver to the Grantor surviving
any such merger, the certificate or certificates (if any) evidencing the
Pledged Equity of the non-surviving Grantor of such merger.

 

8.19         Obligations and Liens Absolute and Unconditional.  Each Grantor
understands and agrees that the obligations of each Grantor under this
Agreement shall be construed as a continuing, absolute and unconditional without
regard to (a) the validity or enforceability of any ISDA Document, any of
the ISDA Obligations or any other collateral security therefor or guaranty or
right of offset with respect thereto at any time or from time to time held by
the Secured Party, (b) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be
asserted by any Grantor or any other Person against the Secured Party, or (c) any
other circumstance whatsoever (with or without notice to or knowledge of any
Grantor) which constitutes, or might be construed to constitute, an equitable
or legal discharge of any Grantor for the ISDA Obligations, in bankruptcy or in
any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against any Grantor, the Secured Party may, but
shall be under no obligation to, make a similar demand on or otherwise pursue
such rights and remedies as it may have against any other Grantor or any other
Person or against any collateral security or guaranty for 

 

32

 

the
ISDA Obligations or any right of offset with respect thereto, and any failure
by the Secured Party to make any such demand, to pursue such other rights or
remedies or to collect any payments from any other Grantor or any other Person
or to realize upon any such collateral security or guaranty or to exercise any
such right of offset, or any release of any other Grantor or any other Person
or any such collateral security, guaranty or right of offset, shall not relieve
any Grantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Secured Party against any Grantor. For the purposes
hereof “demand” shall include the commencement and continuance of any legal
proceedings.

 

8.20         Termination; Reinstatement.  This Agreement shall terminate, subject to
reinstatement in accordance with this Section 8.20, upon the Discharge of
ISDA Obligations.  This Agreement will be
reinstated if at any time any payment or distribution in respect of any of the
ISDA Obligations is rescinded or must otherwise be returned in an Insolvency or
Liquidation Proceeding or otherwise by any holder of ISDA Obligations or any
representative of any such party (whether by demand, settlement, litigation or
otherwise).  In the event that any
representative or any holder of any ISDA Obligation recovers all or any part of
a payment or distribution made with respect to an ISDA Obligation in an
Insolvency or Liquidation Proceeding or otherwise, such representative or
holder, as the case may be, will forthwith deliver the same to the Secured
Party on behalf of the holders of an ISDA Obligation, for the account of the
such holders of an ISDA Obligation, to be applied in accordance with Section 4.1
of the Intercreditor Agreement.  Until so
delivered, such proceeds will be held by the representative or holder who
received such proceeds, for the benefit of the holders of an ISDA Obligation.

 

[Remainder of Page Intentionally Left
Blank]

 

33

 

Each of the undersigned has
caused this Guarantee and Collateral Agreement to be duly executed and
delivered as of the date first above written.

 

 

	
   

  	
  MXENERGY HOLDINGS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  	
   

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  	
   

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SEMPRA ENERGY TRADING LLC, as Secured Party

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael D. Mitchell 

  
	
   

  	
   

  	
  Name:
  Michael D. Mitchell 

  	
   

  
	
   

  	
   

  	
  Title:
  Vice President

  	
   

  

 

[Signature
Page to Guarantee and Collateral Agreement]

 

 

	
   

  	
  ADDITIONAL GRANTORS:

  
	
   

  	
   

  
	
   

  	
  ONLINECHOICE INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY GAS CAPITAL CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY ELECTRIC CAPITAL CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  

 

[Signature
Page to Guarantee and Collateral Agreement]

 

 

	
   

  	
  MXENERGY CAPITAL HOLDINGS CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INFOMETER.COM INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY CAPITAL CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MXENERGY SERVICES INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer 

  

 

[Signature
Page to Guarantee and Collateral Agreement]

 

 

Schedule 1

 

GRANTORS

 

Infometer.com Inc.

 

MxEnergy Capital Corp.

 

MxEnergy Capital Holdings
Corp.

 

MxEnergy Electric Capital
Holdings Corp.

 

MxEnergy Electric Capital
Corp.

 

MxEnergy Gas Capital Corp.

 

MxEnergy Gas Capital
Holdings Corp.

 

MxEnergy Services Inc.

 

OnlineChoice Inc.

 

37

 

Schedule 2

 

PLEDGED EQUITY, INVESTMENT PROPERTY AND PLEDGED NOTES

 

1.                                       Pledged Equity

 

(a)                                  100% of the
Capital Stock of the following:

 

(i)                                     Infometer.com
Inc.

(ii)                                  MxEnergy Capital
Corp.

(iii)                               MxEnergy
Capital Holding Corp.

(iv)                              MxEnergy
Electric Capital Holdings Corp.

(v)                                 MxEnergy
Electric Inc.

(vi)                              MxEnergy
Electric Capital Corp.

(vii)                           MxEnergy Inc.

(viii)                        MxEnergy Gas
Capital Corp.

(ix)                                MxEnergy Gas
Capital Holdings Corp.

(x)                                   MxEnergy
Services Inc.

(xi)                                OnlineChoice
Inc.

 

(b)                                 65% of the
Capital Stock of MxEnergy (Canada) Ltd.

 

2.                                       Investment
Property

 

                                                [To Come]

 

3.                                       Pledged Notes

 

                                                [To Come]

 

38

 

Schedule 3

 

PERFECTION FILINGS AND ACTIONS

 

1.                                       UCC-1 Financing
Statements:

 

(a) UCC-1
Financing Statement naming Holding as debtor and Sempra as assured party, to be
filed in the office of the Secretary of State of the State of Delaware;

 

(b) UCC-1
Financing Statement naming MxEnergy as debtor and Sempra as secured party, to
be filed in the office of the Secretary of State of the State of Delaware;

 

(c) UCC-1
Financing Statement naming MxElectric as debtor and Sempra as secured party, to
be filed in the office of the Secretary of State of the State of Delaware;

 

(d) UCC-1
Financing Statement naming MxEnergy Services Inc. as debtor and Sempra as
secured party, to be filed in the office of the Secretary of State of the State
of Delaware;

 

(e) UCC-1
Financing Statement naming OnlineChoice Inc. as debtor and Sempra as secured
party, to be filed in the office of the Secretary of State of the State of
Delaware;

 

(f) UCC-1
Financing Statement naming MxEnergy Gas Capital Holdings Corp. as debtor and
Sempra as secured party, to be filed in the office of the Secretary of State of
the State of Delaware;

 

(g) UCC-1
Financing Statement naming MxEnergy Electric Capital Holdings Corp. as debtor
and Sempra as secured party, to be filed in the office of the Secretary of
State of the State of Delaware;

 

(h) UCC-1
Financing Statement naming MxEnergy Gas Capital Corp. as debtor and Sempra as
secured party, to be filed in the office of the Secretary of State of the State
of Delaware;

 

(i) UCC-1
Financing Statement naming MxEnergy Electric Capital Corp. as debtor and Sempra
as secured party, to be filed in the office of the Secretary of State of the
State of Delaware;

 

(j) UCC-1
Financing Statement naming MxEnergy Capital Holdings Corp. as debtor and Sempra
as secured party, to be filed in the office of the Secretary of State of the
State of Delaware;

 

(k) UCC-1
Financing Statement naming Infometer.com Inc. as debtor and Sempra as secured
party, to be filed in the office of the Secretary of State of the State of
Delaware; and

 

39

 

(l) UCC-1
Financing Statement naming MxEnergy Capital Corp. as debtor and Sempra as
secured party, to be filed in the office of the Secretary of State of the State
of Delaware.

 

2.                                       UCC-3 Financing
Statements

 

3.                                       Control
Agreements

 

(a)                                  Wachovia
Control Agreement

 

(b)                                 Huntington
Control Agreement

 

40

 

Schedule 4

 

COLLATERAL LOCATIONS

 

41

 

Schedule 5

 

INTELLECTUAL PROPERTY

 

42

 

Schedule 6

 

DEPOSIT ACCOUNTS

 

43

 

Schedule 7

 

IDENTIFIED CLAIMS

 

44

 

Annex I

 

JOINDER AGREEMENT

 

The undersigned,                              ,
a                      ,
hereby agrees to become party as [a Grantor] [the Secured Party] under the
Guarantee and Collateral Agreement dated as of September 22, 2009 (as
amended, amended and restated, supplemented or otherwise modified and in effect
from time to time, the “Guarantee
and Collateral Agreement”) among MxEnergy Holdings Inc.,
MxEnergy Electric Inc., MxEnergy Inc., the other parties thereto, as Grantors,
and Sempra Energy Trading, LLC, as Secured Party, for all purposes thereof on
the terms set forth therein, and to be bound by the terms of the Guarantee and
Collateral Agreement as fully as if the undersigned had executed and delivered
the Guarantee and Collateral Agreement as of the date thereof.

 

The provisions of Section 8
of the Guarantee and Collateral Agreement will apply with like effect to this
Guarantee and Collateral Agreement Joinder. 
Capitalized terms not otherwise defined in this Guarantee and Collateral
Agreement Joinder shall have the respective meanings given in the Guarantee and
Collateral Agreement.

 

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

 

	
   

  	
  [                                                                                                  ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

45Exhibit 10.2

 

	
   

  

STOCKHOLDERS AGREEMENT

 

OF

 

MXENERGY HOLDINGS INC.

 

Dated as of September 22, 2009

	
   

  

 

 

	
  ARTICLE I

  	
  GOVERNANCE AND
  MANAGEMENT OF THE COMPANY

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Voting; Certain
  Actions

  	
   

  	
  2

  
	
  1.2

  	
  Chief Executive
  Officer; Management

  	
   

  	
  3

  
	
  1.3

  	
  Information;
  Access

  	
   

  	
  3

  
	
  1.4

  	
  Corporate
  Opportunities

  	
   

  	
  4

  
	
  1.5

  	
  Certain
  Understandings

  	
   

  	
  5

  
	
  1.6

  	
  Termination of
  Certain Rights

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  TRANSFERS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  In General

  	
   

  	
  6

  
	
  2.2

  	
  Additional
  Restrictions

  	
   

  	
  7

  
	
  2.3

  	
  Tag-Along Rights

  	
   

  	
  7

  
	
  2.4

  	
  Drag-Along
  Rights

  	
   

  	
  9

  
	
  2.5

  	
  Right of First
  Refusal

  	
   

  	
  11

  
	
  2.6

  	
  Legend

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  DEFINITIONS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Certain
  Definitions

  	
   

  	
  14

  
	
  3.2

  	
  Terms Generally

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  MISCELLANEOUS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Termination

  	
   

  	
  24

  
	
  4.2

  	
  Confidentiality

  	
   

  	
  24

  
	
  4.3

  	
  Restrictions on
  Other Agreements; Conflicts with Organizational Documents

  	
   

  	
  25

  
	
  4.4

  	
  Further
  Assurances

  	
   

  	
  25

  
	
  4.5

  	
  No Recourse

  	
   

  	
  25

  
	
  4.6

  	
  Amendment;
  Waivers, etc.

  	
   

  	
  26

  
	
  4.7

  	
  Assignment

  	
   

  	
  26

  
	
  4.8

  	
  Binding Effect

  	
   

  	
  26

  
	
  4.9

  	
  No Third Party
  Beneficiaries

  	
   

  	
  26

  
	
  4.10

  	
  Notices

  	
   

  	
  26

  
	
  4.11

  	
  Severability

  	
   

  	
  27

  
	
  4.12

  	
  Headings

  	
   

  	
  27

  
	
  4.13

  	
  Entire Agreement

  	
   

  	
  27

  
	
  4.14

  	
  Governing Law

  	
   

  	
  27

  
	
  4.15

  	
  Arbitration

  	
   

  	
  27

  
	
  4.16

  	
  Waiver of
  Certain Damages

  	
   

  	
  28

  
	
  4.17

  	
  Counterparts;
  Facsimile Signatures

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
  Class A
  Stockholders

  	
   

  	
   

  
	
  Schedule II

  	
  Class B
  Stockholders

  	
   

  	
   

  
	
  Schedule III

  	
  Class C
  Stockholders

  	
   

  	
   

  
	
  Schedule IV

  	
  AIG Entities

  	
   

  	
   

  
	
  Annex A

  	
  Form of Joinder
  Agreement

  	
   

  	
   

  
	
  Annex B

  	
  Form of
  Representations and Warranties

  	
   

  	
   

  
	
  Annex C

  	
  Form of
  Confidentiality Agreement

  	
   

  	
   

  
					

 

i

 

STOCKHOLDERS
AGREEMENT  

 

This STOCKHOLDERS AGREEMENT is dated as of September 22,
2009, among (i) MXenergy Holdings Inc., a Delaware corporation (the
“Company”), (ii) the Stockholders listed on Schedule I
hereto (collectively, the “Class A Stockholders”), (iii) the
Stockholders listed on Schedule II hereto (collectively, the “Class B
Stockholders”), (iv) the Stockholders listed on Schedule III
hereto (collectively, the “Class C Stockholders” and, together with
the Class A Stockholders and the Class B Stockholders, the “Common
Stockholders”) and (v) any other Stockholder that may become a
party to this Agreement after the date and pursuant to the terms hereof.  Capitalized terms used herein without
definition shall have the meanings set forth in Section 3.1. 

 

RECITALS 

 

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

 

B.                                     Pursuant to the Lock-Up Agreement, the
Company has commenced an exchange offer (the “Exchange Offer”) to
exchange any and all of the outstanding Notes (excluding Notes owned by the
Company) for new debt instruments, cash and shares of Common Stock, upon the
terms and subject to the conditions set forth in that certain Second Amended
and Restated Confidential Offering Memorandum and Consent Solicitation
Statement, dated August 27, 2009, as may be further amended or
supplemented, and in the related Letter of Transmittal and Consent
(collectively, the “Offer Documents”). 

 

C.                                     Pursuant to the Offer Documents, the
Notes tendered pursuant to the Exchange Offer have been exchanged for, among
other things, shares of Class A Common Stock representing 62.5% of the
outstanding shares of Common Stock (on a Fully Diluted Basis, but prior to any
grants under the Management Incentive Plan). 

 

D.                                    As part of the Restructuring, (i) the
Company has issued shares of Class B Common Stock, representing 7.37% of
the outstanding shares of Common Stock (on a Fully Diluted Basis, but prior to
grants under the Management Incentive Plan) and (ii) the Company
has issued shares of Class C Common Stock, representing 30.13% of the  

 

1

 

outstanding shares of Common Stock (on a Fully Diluted
Basis, but prior to any grants under the Management Incentive Plan). 

 

E.                                      Following the closing of the
Exchange Offer, the Company intends to establish a management incentive plan
(the “Management Incentive Plan”), pursuant to which the Company will grant
to certain key management employees of the Company and its
Subsidiaries, in the aggregate, Equity Securities representing in the
aggregate10% of the outstanding shares of Common Stock (on a Fully Diluted
Basis). 

 

F.                                      The Company and the Stockholders wish to
set forth in this Agreement certain terms and conditions regarding the
ownership of Equity Securities, including certain restrictions on the transfer
of such securities, and the management of the Company and its Subsidiaries. 

 

NOW, THEREFORE, in consideration of the mutual
agreements contained herein, the parties hereto agree as follows: 

 

ARTICLE I 

 

GOVERNANCE AND MANAGEMENT
OF THE COMPANY  

 

1.1                                 Voting; Certain Actions. 

 

(a)                                  Each Stockholder shall vote or cause to
be voted all of its Voting Securities, and shall take or cause to be taken all
other necessary or desirable actions within such Stockholder’s control
(including, without limitation, attending meetings in person or by proxy for
purposes of obtaining a quorum and execution of written consents in lieu of
meetings), and the Company shall take or cause to be taken all necessary and
desirable actions within its control (including, without limitation, calling
special board and stockholder meetings), to cause the election, removal and
replacement of directors (including the election of the President and Chief
Executive Officer as a director) in the manner contemplated in, and otherwise
give the fullest effect possible to, the provisions of the Certificate of
Incorporation. 

 

(b)                                 Each Stockholder, in connection with any
vote or action by written consent of the stockholders of the Company relating
to any matter requiring prior approval by the Board in accordance with the
provisions of the Certificate of Incorporation, (i) shall vote or
cause to be voted all of its Voting Securities against (and not act by written
consent to approve) such matter if such matter has not received such required
approval by the Board and (ii) otherwise shall use its commercially
reasonable efforts to take or cause to be taken all other reasonable actions,
at the expense of the Company, required, to the extent permitted by Applicable
Law, to prevent the taking of any action by the Company that has not received
such required approval by the Board. 

 

2

 

(c)                                  Insofar as the Company or any of its
Subsidiaries becomes subject to requirements under Applicable Law or the
regulations of any self-regulatory organization relating to the composition of
the Board or its Committees, their respective responsibilities or the
qualifications of their respective members, each of the Common Stockholders
shall cooperate in good faith to select their respective nominees to the Board
under the Certificate of Incorporation so as to permit the Company to comply
with all such applicable requirements. 

 

1.2                                 Chief Executive Officer; Management. 
The Chief Executive Officer shall be appointed by the Board and may be
removed with or without cause by the Board, in each case, in the manner set
forth in the Certificate of Incorporation. 
The compensation and benefits of the Chief Executive Officer, and any
employee of the Company or any Subsidiary of the Company who reports directly
to the Chief Executive Officer, shall be determined by the Compensation
Committee, and in the case of the compensation and benefits of the Chief
Executive Officer only, subject also to the approval of the Board (acting upon
recommendation of the Compensation Committee). 

 

1.3                                 Information; Access. 

 

(a)                                  Information. 
The Company shall provide each Stockholder or its designated
Representative with: 

 

(i)                                     as soon as available, and in any event
within 60 days after the end of each fiscal quarter of the Company for the
first three fiscal quarters of a fiscal year, the consolidated balance sheet of
the Company and its Subsidiaries as at the end of such quarter and the
consolidated statements of income, cash flows and changes in stockholders’
equity for such quarter and the portion of the fiscal year then ended of the
Company and its Subsidiaries; 

 

(ii)                                  as soon as available, and in any event
within 105 days after the end of each fiscal year of the Company, the
consolidated balance sheet of the Company and its Subsidiaries as at the end of
each such fiscal year and the consolidated statements of income, cash flows and
changes in stockholders’ equity for such year of the Company and its
Subsidiaries, accompanied by the report of independent certified public
accountants of recognized national standing; and 

 

(iii)                               whether or not required by Applicable Law
or pursuant to the terms of any outstanding indebtedness of the Company, any
annual reports on Form 10-K, quarterly reports on Form 10-Q and
reports on Form 8-K(without exhibits) pursuant to Section 13 or 15(d) of
the Exchange Act, in such form and at such times (subject to a 15-day grace
period) as the Company would be required by Applicable Law to prepare such
reports if the Company were a publicly reporting company. 

 

3

 

(b)                                 Access.  If requested
by a Stockholder that (together with its Permitted Transferees) is a holder of
an aggregate number of shares of Common Stock representing at least 5% of the
issued and outstanding shares of Common Stock, the Company shall, and shall
cause its Subsidiaries, officers, directors and employees to, (i) provide
to the Representatives of such Stockholder such additional information
regarding the Company’s and its Subsidiaries’ affairs, finances and accounts as
each such Stockholder may reasonably request upon reasonable notice and (ii) provide
to the Representatives of such Stockholder designated by the Stockholder,
during normal business hours, upon reasonable notice and at such Stockholder’s
expense, reasonable access to the books and records of the Company and its Subsidiaries.

 

(c)                                  Additional Information. 
Each of the Stockholders agrees that, from the date of this Agreement
and for so long as it shall own any Equity Securities, it will furnish the
Company such necessary information and reasonable assistance as the Company may
reasonably request in connection with (i) the consummation of the
transactions contemplated by this Agreement and the Registration Rights
Agreement and (ii) the preparation and filing of any reports,
filings, applications, consents or authorizations with any Governmental Entity
under any Applicable Law.  Each
Stockholder proposing to make a Transfer pursuant to Article II shall
provide the Company with any information reasonably requested by the Company in
order to determine whether the proposed Transfer would be a Prohibited
Transaction. 

 

1.4                                 Corporate Opportunities. 
Except as otherwise provided in the second sentence of this Section 1.4,
(i) no Stockholder and no stockholder, member, manager, partner or
Affiliate of any Stockholder or their respective officers, directors, employees
or agents (even if also an officer or director of the Company) (any of the
foregoing, a “Stockholder Group Member”) shall have any duty to
communicate or present an investment or business opportunity or prospective economic
advantage to the Company or any of its Subsidiaries in which the Company or one
of its Subsidiaries may, but for the provisions of this Section 1.4, have
an interest or expectancy (“Corporate Opportunity”), and (ii) no
Stockholder or any Stockholder Group Member (even if also an officer or
director of the Company) will be deemed to have breached any fiduciary or other
duty or obligation to the Company by reason of the fact that any such Person
pursues or acquires a Corporate Opportunity for itself or its Affiliates or
directs, sells, assigns or transfers such Corporate Opportunity to another
Person or does not communicate information regarding such Corporate Opportunity
to the Company.  The Company, on behalf of
itself and its Subsidiaries, renounces any interest in a Corporate Opportunity
and any expectancy that a Corporate Opportunity will be offered to the Company;
provided that the Company does not renounce any interest or expectancy
it may have in any Corporate Opportunity that is offered to an officer or
director of the Company in his or her capacity as an officer or director of the
Company, whether or not such individual is also an officer or director of a
Stockholder, if such Corporate Opportunity is offered to such individual
because the Person offering such Corporate Opportunity specifically wishes to
do business with the Company or any of its Subsidiaries, and the Stockholders
recognize that the Company reserves such rights.   

 

4

 

Nothing herein shall be construed to require any person to breach a
duty of loyalty to such person’s employer. 

 

1.5                                 Certain Understandings. 
Each party to this Agreement acknowledges that the initial holder of the
Class B Common Stock and its Affiliates (collectively, the “Class B
Holder”) will engage in transactions with the Company and its Subsidiaries
pursuant to certain Master ISDA Agreements (as defined in the Certificate of
Incorporation).  Neither this Agreement
nor the Master ISDA Agreements shall preclude the Class B Holder from
engaging in transactions of a nature like the transactions contemplated by the
Master ISDA Agreements with any other Person. 
Without limiting the foregoing, each party acknowledges that the Class B
Holder is engaged in, among other things, dealing in fuel, and power and
related commodities for its own account in the U.S. wholesale fuel and power
markets, and manages positions in fuel and power and related commodities for
others.  The Class B Holder may (i) take
actions under the Master ISDA Agreements that may be different than the actions
the Class B Holder takes for its own account or for the account of others,
even though the circumstances may be the same or similar and (ii) effect
transactions with counterparties that are also counterparties to other
transactions in fuel and/or power or related commodities with the Class B
Holder or for which the Class B Holder is acting in an agency
capacity.  The Class B Holder may
from time to time take proprietary positions and/or make a market in
commodities and/or instruments identical or economically related to the
transactions contemplated by the Master ISDA Agreements, or may have an
investment banking or other commercial relationship with and access to
information from the issuer(s) of financial instruments or other interests
underlying such transactions during the term of the Master ISDA
Agreements.  The Class B Holder may
also undertake lawful proprietary activities, including hedging transactions
related to the initiation or termination of a transaction, that may adversely
affect the market price, rate, index or other market factor(s) underlying
the transactions contemplated by the Master ISDA Agreements and consequently
the value of the transactions contemplated by the Master ISDA Agreements.  The parties acknowledge that the relationship
between the Class B Holder and the Company and its Subsidiaries under the
Master ISDA Agreements is a commercial and not a fiduciary relationship and
that neither the Master ISDA Agreements nor this Agreement (except as expressly
set forth herein) shall limit in any manner the ability of the Class B
Holder to enter into any transaction of any nature with any other Person,
provided that the Class B Holder must establish an information wall within
its organization so that any Information it obtains in its capacity as a
Stockholder or that is disclosed to the Class B Director is kept
confidential and is not used by the Class B Holder other than in connection with the
operation of the Company and its Subsidiaries,  and provided further, for the avoidance
of doubt, that nothing in this Section 1.5 relieves the Class B
Holder of its obligations under Section 4.2. 

 

1.6                                 Termination of Certain Rights. 
In connection with a proposed IPO, if the managing underwriter or underwriters
thereof advise the Company in writing that in its or their opinion the
retention of any provision(s) contained in Sections 1.1 or 1.2 of this
Agreement or Article X of the Certificate of Incorporation would be
reasonably expected  

 

5

 

to have a material adverse effect on the success of the offering
(including, without limitation, a material impact on the selling price), the
Stockholders shall negotiate in good faith with each other to amend one or more
of such provisions to the extent necessary to avoid having such a material
adverse effect on the success of the IPO. 
Notwithstanding the foregoing, for so long as the shares of Class B
Common Stock are outstanding and have not been converted to shares of Class C
Common Stock or to shares of Class D Common Stock pursuant to the
Certificate of Incorporation, Sempra shall not be required under this Section 1.6
to amend or modify or to negotiate to amend or modify the provisions of
Sections 10.1(a)(i), (ii), (iii), (iv), (vi), (xi), (xvi) or (xviii), 10.1(b),
10.2 and 10.3 of the Certificate of Incorporation. 

 

ARTICLE II 

 

TRANSFERS  

 

2.1                                 In General. 

 

(a)                                  No Stockholder may Transfer any of its
Equity Securities except in compliance with the Securities Act, applicable
state securities laws and all applicable provisions of this Agreement.  Any Transfer or attempted Transfer of Equity
Securities in violation of any provision of this Agreement shall be void. 

 

(b)                                 Notwithstanding anything to the contrary
in this Agreement, no Stockholder shall Transfer any Equity Securities (whether
or not such Transfer would otherwise be permitted by Section 2.1(a)) (i) to any Competitor of the Company or any of
its Subsidiaries or (ii) if any such Transfer would constitute a
Prohibited Transaction, unless, in any such case, such Transfer has been
approved by Board Special Approval; provided, that any such Transfer of
shares of Class B Common Stock shall be subject to the provisions of Section 5.3(c) of
the Certificate of Incorporation.  

 

(c)                                  Notwithstanding anything to the contrary
in this Agreement, no Stockholder shall Transfer any Equity Securities (whether
or not the proposed Transferee is a Permitted Transferee or such Transfer would
otherwise be permitted by Section 2.1(a)) to any Person without the
consent of Stockholders holding in the aggregate a majority of the issued and
outstanding shares of Class B Common Stock if such Transfer would result
in a “Change of Control” within the meaning of clause (3) of the definition
of Change of Control in the New Notes Indenture as modified by the second
proviso contained in such definition (whether or not such Transfer is pursuant
to a Mandatory Offer (as defined in the Certificate of Incorporation), the
provisions of Section 2.3 or 2.4, or otherwise), unless such Transfer
would, as a condition to the consummation thereof, result in, and such Transfer
does result in, the Discharge of ISDA Obligations having occurred. 

 

(d)                                 It shall be a condition precedent to the
Transfer of any Equity Securities to any Transferee (including any Permitted
Transferee) after the date of this Agreement that  

 

6

 

such Transferee (i) become a party to this Agreement by
executing and delivering a joinder agreement hereto, substantially in the form
attached as Annex A hereto, and, in the case of a Transfer of shares of Class A
Common Stock, a joinder agreement to the Class A Voting Agreement and, in
the case of a Transfer of shares of Class C Common Stock, a joinder
agreement to the Class C Voting Agreement, (ii) except in the
case of a Transfer of shares of Class B Common Stock, execute all such
other agreements or documents as may reasonably be requested by the Company
(which may include such representations and warranties made by the Transferee
to the Company as may be reasonably requested by the Company to ensure
compliance with applicable regulatory requirements, which representations and
warranties shall be substantially in the form attached as Annex B hereto),
(iii) in the case of a Transfer of shares of Class B Common
Stock, execute all such other agreements or documents as may reasonably be
requested by the Company for the sole purpose of ensuring compliance with the
Securities Act and compliance with the terms this Agreement, and which are
necessary for purposes of legal and/or regulatory compliance, (iv)ensure with
the Transferring Stockholders that any merger control or other regulatory
authorizations needed in connection with such Transfer are duly obtained and (v) deliver
such agreements and documents to the Company at its address specified in Section 4.10.  Such Person shall, upon satisfaction of such
conditions to the reasonable satisfaction of the Company and its acquisition of
Equity Securities, be a Stockholder for all purposes of this Agreement. 

 

2.2                                 Additional Restrictions. 
No shares of Class C Common Stock held by any current or former
employees of the Company or any of its Subsidiaries may be Transferred to any
Person (except by will or in connection with customary estate planning) until
the third anniversary of the Closing Date or as otherwise provided in the
Management Incentive Plan.  From and
after the third anniversary of the Closing Date, any shares of Class C
Common Stock acquired by any current or former employees of the Company or any
of its Subsidiaries under the Management Incentive Plan may be Transferred only
as provided in the Management Incentive Plan. 

 

2.3                                 Tag-Along Rights. 

 

(a)                                  In the event of a proposed Transfer by
one or more Stockholders (each, a “Transferring Stockholder”) of shares
of Common Stock representing in the aggregate a majority of the issued and
outstanding shares of all classes of Common Stock (calculated on a Fully
Diluted Basis) (a “Tag-Along Transfer”) to a single Transferee or a
Group of related Transferees, in any transaction or a series of related
transactions (including, for the avoidance of doubt, where the conditions to a
Tag-Along Transfer are satisfied as the result of a Mandatory Offer (as defined
in the Certificate of Incorporation)), other than (x) to a
Permitted Transferee or (y) in connection with a Public Offering or
brokers’ transactions (within the meaning of Section 4(4) of the
Securities Act) pursuant to Rule 144, each Stockholder other than the
Transferring Stockholder (each, a “Tag-Along Participant”) shall have
the right to participate on the same terms and conditions and for the same per
share consideration as each Transferring Stockholder in the Transfer, in the
manner set forth in this Section 2.3. 
Prior to any Tag-Along Transfer, following  

 

7

 

compliance with Section 2.5 (if applicable), each Transferring
Stockholder shall deliver to the Company prompt written notice (the “Transfer
Notice”), which the Company will forward to each Tag-Along Participant
within five (5) Business Days of receipt thereof, which notice shall state
(i) the name of the proposed Transferee, (ii) the
number of shares of Common Stock proposed to be Transferred by the Transferring
Stockholder (the “Transferred Securities”), (iii) the
proposed purchase price therefor, including a description of any non-cash
consideration sufficiently detailed to permit the determination of the Fair
Market Value thereof, and (iv) the other material terms and
conditions of the proposed Tag-Along Transfer, including the proposed Tag-Along
Transfer date (which date may not be less than 35 Business Days after delivery
to the Tag-Along Participants of the Transfer Notice).  Such notice shall be accompanied by a written
offer from the proposed Transferee to purchase the Transferred Securities,
which offer may be conditioned upon the consummation of the sale by each
Transferring Stockholder, or the most recent drafts of the purchase and sale documentation
between each Transferring Stockholder and the Transferee, which shall make
provision for the participation of the Tag-Along Participants in such sale
consistent with this Section 2.3. 

 

(b)                                 Each Tag-Along Participant may elect to
participate in the proposed Tag-Along Transfer to the proposed Transferee
identified in the Transfer Notice by giving written notice to the Company and
to each Transferring Stockholder within twenty (20) Business Days after the
delivery of the Transfer Notice to such Tag-Along Participant, which notice
shall state that such Tag-Along Participant elects to exercise its rights of
tag-along under this Section 2.3 and shall state the maximum number of
shares of Common Stock sought to be Transferred.  Each Tag-Along Participant shall be deemed to
have waived its right of tag-along with respect to the Transferred Securities
hereunder if it fails to give notice within the prescribed time period. 

 

(c)                                  At the closing of the Tag-Along Transfer
of the Transferred Securities to the Transferee, each Tag-Along Participant
exercising its tag-along rights hereunder shall deliver to the Transferring
Stockholder certificates representing the Transferred Securities to be
Transferred by such Tag-Along Participant, duly endorsed for transfer or
accompanied by stock powers duly executed, in either case executed in blank or
in favor of the applicable purchaser, against payment of the aggregate purchase
price therefor by wire transfer of immediately available funds.  Each Stockholder participating in a Tag-Along
Transfer shall receive consideration in the same form and per share amount
after deduction of such Stockholder’s proportionate share of the related
expenses.  Each Stockholder participating
in a Tag-Along Transfer shall agree to make or agree to the same customary
representations, covenants, indemnities and agreements as the Transferring
Stockholder, so long as they are made severally and not jointly and the
liabilities thereunder are borne on a pro
rata basis based on the consideration to be received by each
Stockholder; provided, that any general indemnity given by the
Transferring Stockholder, applicable to liabilities not specific to the
Transferring Stockholder, to the Transferee in connection with such Tag-Along
Transfer shall be apportioned among the Stockholders participating in such
Tag-Along Transfer according to the consideration received by each such
Stockholder and shall not exceed 20% of such  

 

8

 

Stockholder’s net proceeds from the Tag-Along Transfer; provided,
further, that any representation relating specifically to a Stockholder
or its ownership of the Equity Securities to be Transferred shall be made only
by that Stockholder.  The fees and
expenses incurred in connection with a
Tag-Along Transfer and for the benefit of all Stockholders (it being understood
that costs incurred by or on behalf of a Stockholder for his, her or its sole
benefit will not be considered to be for the benefit of all Stockholders), to
the extent not paid or reimbursed by the Company or the Transferee or acquiring
Person, shall be shared by all the Stockholders on a pro rata basis, based on the consideration received by each
Stockholder in respect of its Equity Securities to be Transferred; provided that no Stockholder shall
be obligated to make any out-of-pocket expenditure prior to the consummation of
the Tag-Along Transfer (excluding de
minimis expenditures).  The proposed Tag-Along Transfer date
may be extended beyond the date described in the Transfer Notice to the extent
necessary to obtain required approvals of Governmental Entities and other
required approvals and the Company shall use its commercially reasonable
efforts to obtain, and the Stockholders shall use their respective commercially
reasonable efforts to cooperate with the Company in obtaining, such approvals. 

 

(d)                                 If the Transferring Stockholder sells or
otherwise Transfers to the Transferee any of its shares of Common Stock in
breach of this Section 2.3, then each Tag-Along Participant shall have the
right to sell to each Transferring Stockholder, and each Transferring
Stockholder undertakes to purchase from each Tag-Along Participant, the number
of shares of Common Stock that such Tag-Along Participant would have had the
right to sell to the Transferee pursuant to this Section 2.3, for a per
share amount and form of consideration and upon the terms and conditions on
which the Transferee bought such shares from the Transferring Stockholder, but
without any indemnity being granted by any Tag-Along Participant to the
Transferring Stockholder; provided, however, that nothing
contained in this Section 2.3(d) shall preclude any Stockholder from
seeking alternative remedies against any such Transferring Stockholder as a
result of its breach of this Section 2.3. 

 

(e)                                  In the event of a proposed Transfer of
shares of Common Stock that is subject to this Section 2.3 and the
provisions of Article XI of the Certificate of Incorporation, the
provisions of Article XI of the Certificate of Incorporation shall apply
first to such Transfer, and the provisions of this Section 2.3 shall apply
second. 

 

2.4                                 Drag-Along Rights. 

 

(a)                                  If one or more Stockholders holding in
the aggregate (x) 75% of the issued and outstanding shares of
Common Stock and (y) 70% of the issued and outstanding shares of Class B
Common Stock determine to Transfer all of the issued and outstanding Equity
Securities to any Person or Persons (other than a Stockholder Transferee and
other than an Affiliate of any of the transferring Stockholders or a Group
including one or more Affiliates of any of the transferring Stockholders) in
any transaction or a series of related transactions that is proposed to be
effected on an arms-length basis (a “Drag-Along  

 

9

 

Transaction”), then, if requested by the
Stockholders Transferring such Equity Securities (the “Section 2.4
Transferring Stockholders”), each other Stockholder (each, a “Selling
Stockholder”) shall be required to sell to the proposed Transferee all of
the Equity Securities held by it, for the same form and amount of consideration
per share as the consideration per share to be received by the Section 2.4
Transferring Stockholders, and upon the same terms and conditions as those upon
which the Section 2.4 Transferring Stockholders sell their Equity
Securities to the proposed Transferee.  If any holders of Equity Securities of any
class are given an option as to the form and amount of consideration to be
received in the Drag-Along Transaction, all holders of Equity Securities of such class must be given the same
option.  The Section 2.4
Transferring Stockholder(s) shall provide written notice (the “Drag-Along
Notice”) to each other Selling Stockholder of any proposed Drag-Along
Transaction as soon as practicable following its exercise of the rights
provided in this Section 2.4(a).  The Drag-Along Notice shall set
forth the consideration to be paid by the proposed Transferee for the Equity
Securities, the identity of the
proposed Transferee and the material terms of the proposed Drag-Along
Transaction.

 

(b)                                 In connection with the Drag-Along
Transaction, each Selling Stockholder will agree to make or agree to the same
customary representations, covenants, indemnities and agreements as the Section 2.4
Transferring Stockholders, so long as they are made severally and not jointly
and the liabilities thereunder are borne on a pro
rata basis based on the consideration to be received by each
Stockholder; provided, however, that (i) any general
indemnity given by the Section 2.4 Transferring Stockholders, applicable
to liabilities not specific to the Section 2.4 Transferring Stockholders,
to the Transferee in connection with such Drag-Along Transaction shall be
apportioned among the Selling Stockholders according to the consideration
received by each Selling Stockholder and shall not exceed 20% of such Selling
Stockholder’s net proceeds from the Drag-Along Transaction, (ii) that
any representation relating specifically to a Selling Stockholder or its Equity
Securities shall be made only by that Selling Stockholder and (iii) in
no event shall any Stockholder be obligated to agree to any non-competition
covenant or other similar agreement as a condition of participating in such
Drag-Along Transaction.  The fees and expenses incurred in connection
with the Drag-Along Transaction and for the benefit of all Stockholders (it
being understood that costs incurred by or on behalf of a Stockholder for his,
her or its sole benefit will not be considered to be for the benefit of all Stockholders),
to the extent not paid or reimbursed by the Company or the Transferee, shall be
shared by all the Stockholders on a pro rata
basis, based on the consideration received by each Stockholder in respect of
its Equity Securities; provided, however, that no Stockholder
shall be obligated to make any out-of-pocket expenditure prior to the
consummation of the Drag-Along Transaction (excluding de  minimis
expenditures).

 

(c)                                  Notwithstanding anything to the contrary
in this Agreement, any Selling Stockholder whose assets (“Plan Assets”)
constitute assets of one or more employee benefit plans and are subject to Part IV
of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
shall not be obligated to sell to any Person 

 

10

 

to whom the sale
of any Equity Securities would constitute a non-exempt “prohibited transaction”
within the meaning of ERISA or the Code, provided, however, that
if so requested by the Section 2.4 Transferring Stockholders: (i) such
Selling Stockholder shall have taken commercially reasonable efforts to (x) structure
its sale of Equity Securities so as not to constitute a non-exempt “prohibited
transaction” or (y) obtain a ruling from the Department of Labor to
the effect that such sale (as originally proposed or as restructured pursuant
to clause (i)(x)) does not constitute a non-exempt “prohibited transaction” and
(ii) such Selling Stockholder shall have delivered an opinion of
counsel (which opinion and counsel are reasonably satisfactory to the Section 2.4
Transferring Stockholders) to the effect that such sale (as originally proposed
or as restructured pursuant to clause (i)(x)) would constitute a non-exempt “prohibited
transaction.”

 

(d)                                 Upon the consummation of the Drag-Along
Transaction and delivery by any Selling Stockholder of the duly endorsed
certificate or certificates representing the Equity Securities held by such
Selling Stockholder to be sold, together with a stock power duly executed in
blank, the acquiring Person shall remit directly to such Selling Stockholder,
by wire transfer of immediately available funds, the consideration for the
Equity Securities sold pursuant thereto.

 

(e)                                  In the event of a proposed Transfer of
shares of Common Stock that is subject to this Section 2.4, Section 2.3
and the provisions of Article XI of the Certificate of Incorporation, the
provisions of this Section 2.4 shall control.

 

2.5                                 Right of First Refusal.

 

(a)                                  Subject to the terms and conditions
specified in this Section 2.5 and without in an way limiting the
restrictions on Transfer in this Article II, the Class A Stockholders
and the Class B Stockholders (collectively, the “ROFR Stockholders”)
shall have a right of first refusal if any Class C Stockholder (the “Initiator”)
proposes to sell any shares of Class C Common Stock owned by it (the “Transfer
Shares”), other than (i) to a Permitted Transferee or (ii) as
a Tag-Along Participant pursuant to Section 2.3 or as a Selling
Stockholder pursuant to Section 2.4.

 

(b)                                 Each time the Initiator proposes so to
sell any Transfer Shares, the Initiator shall give a written notice (the “Initiator
Notice”) to each ROFR Stockholder, specifying the number of Transfer Shares
and containing an irrevocable offer to sell the Transfer Securities to the ROFR
Stockholders at the price, and upon the other material terms and conditions,
specified in the Initiator Notice (the “Transfer Price”).  The Transfer Price shall be equal to the
price offered (the “Purchase Offer”) to the Initiator by a bona fide third party offeror (the “Third-Party Offeror”),
the identity of which shall be specified in the Initiator Notice.  If the Purchase Offer is contained in a
written proposal, a copy of such written proposal shall be provided with the
Initiator Notice.

 

(c)                                  Within twenty (20) Business Days after
its receipt of the Initiator Notice (the “ROFR Exercise Period”), each
ROFR Stockholder who wishes to purchase any 

 

11

 

Transfer Shares
shall give a written notice to the Initiator (the “ROFR Notice”),
specifying the number of Transfer Shares that such ROFR Stockholder wishes to
purchase (up to such ROFR Stockholder’s Pro Rata Share) and, at the option of
such ROFR Stockholder, indicating the maximum number of Transfer Shares that
such ROFR Stockholder irrevocably commits to purchase in excess of such ROFR
Stockholder’s Pro Rata Share (the “Excess Amount”).  Any ROFR Notice shall upon delivery become
binding on the ROFR Stockholder delivering such notice and shall become
irrevocable without the necessity of any acceptance thereof by the
Initiator.  If one or more ROFR
Stockholders decline to participate in such purchase or elect to purchase less
than such ROFR Stockholder’s Pro Rata Share, then the remaining Transfer Shares
shall automatically be deemed to be accepted by the ROFR Stockholders who
specified an Excess Amount in their respective notice of acceptance, and shall
be allocated among such ROFR Stockholders (with rounding to avoid fractional
shares) in proportion to their respective Pro Rata Share, but in no event shall
an amount greater than a ROFR Stockholder’s Excess Amount be allocated to such
ROFR Stockholder.  Any excess Transfer
Securities remaining after such allocation shall be further allocated among the
remaining ROFR Stockholders whose specified Excess Amount has not been
satisfied (with rounding to avoid fractional shares) in proportion to each ROFR
Stockholder’s respective Pro Rata Share, and such procedure shall be employed
until the entire Excess Amount of each ROFR Stockholder has been satisfied or
until all of the Transfer Securities have been allocated.  Two or more ROFR Stockholders may also
deliver a joint ROFR Notice.  A ROFR
Stockholder’s failure to give timely written notice regarding its election to
purchase any Transfer Securities pursuant to this Section 2.5 shall be
deemed an election by such ROFR Stockholder not to purchase any Transfer
Securities.  For purposes of this Section 2.5,
the term “Pro Rata Share” means, with respect to any ROFR Stockholder, with respect to any proposed Transfer,
on the applicable Transfer date, a percentage of the Transfer
Shares being offered to the ROFR Stockholders equal to a fraction determined by
dividing (x) the number of shares of Common Stock held by such ROFR Stockholder as of such date
by (y) the total number of shares of Common Stock held as of such
date by all ROFR Stockholders
participating in the allocation round for which Pro Rata Shares are being
calculated.

 

(d)                                 Upon the consummation of the purchase by
the ROFR Stockholders of the Transfer Shares pursuant to this Section 2.5
and delivery by the Initiator of the duly endorsed certificate or certificates
representing the Transfer Shares, together with a stock power duly executed in
blank, each of the ROFR Stockholders who has purchased such Transfer Shares
shall remit directly to the Initiator, by wire transfer of immediately
available funds, the consideration for the Equity Securities sold pursuant
thereto.

 

(e)                                  Anything in this Section 2.5 to the
contrary notwithstanding, if the ROFR Stockholders do not deliver ROFR Notices
covering in the aggregate all of the Transfer Shares proposed to be sold by the
Initiator in its Initiator Notice, then no ROFR Stockholder shall be entitled
to purchase any of such Transfer Shares pursuant to this Section 2.5.  If, at the end of the ROFR Exercise Period,
none of the ROFR Stockholders has delivered to the Initiator an effective ROFR
Notice, or if the ROFR Stockholders 

 

12

 

have delivered
ROFR Notices covering in the aggregate less than all of the Transfer Shares,
then the Initiator shall have sixty (60) Business Days after the expiration of
the ROFR Exercise Period during which to Transfer all (but not less than all)
of the Transfer Shares to the Third-Party Offeror, at a price not lower than
the Transfer Price and on terms no more favorable to the Third-Party Offeror in
all material respects than those contained in the Transfer Notice.  If, at the end of such sixty-Business Day
period, the Initiator has not completed the Transfer of the Transfer Shares to
the Third-Party Offeror, the Initiator shall no longer be permitted to Transfer
the Transfer Shares to the Third-Party Offeror or any other Person without
again complying with the requirements of this Section 2.5; provided,
however, that if the Initiator determines at any time within such
sixty-Business Day period that the Transfer of the Transfer Shares to the
Third-Party Offeror at a price not lower than the Transfer Price and on terms
no more favorable to the Third-Party Offeror in all material respects than
those contained in the Transfer Notice is impractical, the Initiator may
terminate all attempts to Transfer the Transfer Shares and recommence the procedures
described in this Section 2.5 prior to the expiration of such
sixty-Business Day period by delivering a written notice thereof to each ROFR
Stockholder.

 

2.6                                 Legend.

 

(a)                                  All certificates representing the Equity
Securities held by each Stockholder shall bear legends substantially in the
following forms:

 

“THIS
COMMON STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAW AND MAY NOT BE TRANSFERRED
IN THE ABSENCE OF REGISTRATION THEREUNDER OR AN EXEMPTION THEREFROM.

 

THE
SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS OF A CERTAIN
STOCKHOLDERS AGREEMENT, AMONG THE ISSUER HEREOF AND EACH OF THE HOLDERS OF THE
COMMON STOCK, AS AMENDED, MODIFIED AND SUPPLEMENTED FROM TIME TO TIME.  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT.  THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF
THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT.  COPIES OF SUCH
STOCKHOLDERS AGREEMENT ARE ON FILE AT THE ISSUER’S PRINCIPAL OFFICES AND, UPON
WRITTEN REQUEST, 

 

13

 

COPIES THEREOF WILL BE MAILED WITHOUT CHARGE
WITHIN FIVE DAYS OF RECEIPT OF SUCH REQUEST TO APPROPRIATELY INTERESTED
PERSONS.”

 

(b)                                 Upon the permitted sale of any Equity
Securities pursuant to (i) an effective registration statement
under the Securities Act or pursuant to Rule 144 or (ii) another
exemption from registration under the Securities Act or upon the termination of
this Agreement, the certificates representing such Equity Securities shall be
replaced, at the expense of the Company, with certificates or instruments not
bearing the legends required by Section 2.6(a); provided, however,
that the Company may condition such replacement of certificates under clause (ii) upon
the receipt of an opinion of securities counsel reasonably satisfactory to the
Company.

 

ARTICLE III

 

DEFINITIONS

 

3.1                                 Certain Definitions.

 

“Affiliate”
means, (i) with respect to any Person, any Person directly or
indirectly Controlling, Controlled by or under common Control with such Person,
(ii) with respect to any AIG Entity, any other investment entity
sponsored or managed by AIG or any asset management entity successor thereto, (iii) with
respect to any Camulos Fund, any other investment entity sponsored or managed
by Camulos or any investment management entity successor thereto, and (iv) with
respect to any Taconic Fund, any other investment entity sponsored or managed
by Taconic or any investment management entity successor thereto.

 

“Agreement”
means this Stockholders Agreement, as amended from time to time in accordance
with Section 4.6(a).

 

“AIG” means AIG Global Investment Corp., a New
Jersey corporation.

 

“AIG Entities” means, collectively, each of the
entities listed on Schedule IV hereto.

 

“Applicable
Law” means all applicable provisions of (i) constitutions,
treaties, statutes, laws (including the common law), rules, regulations,
ordinances, codes or orders of any Governmental Entity, (ii) any
consents or approvals of any Governmental Entity and (iii) any
orders, decisions, injunctions, judgments, awards, decrees of or agreements
with any Governmental Entity.

 

14

 

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

 

“Board
Special Approval” means the prior approval of (i) a majority of
the total authorized number of directors constituting the Board, (ii) a
majority of the total authorized number of Class A Directors and (iii) if
required under the Certificate of Incorporation, the Class B Director.

 

“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 to close.

 

“Bylaws”
means the Third Amended and Restated Bylaws of the Company, as they may be
amended from time to time.

 

“Camulos”
means Camulos Capital LP, a Delaware limited partnership.

 

“Camulos
Funds” means, collectively, (i) Camulos Master Fund LP and (ii) Camulos
Loan Vehicle Fund I LP.

 

“Certificate
of Incorporation” means the Second Amended and Restated Certificate of
Incorporation of the Company, as it may be amended from time to time.

 

“Chief
Executive Officer” means the chief executive officer of the Company.

 

“Class A
Common Stock” means the Class A Common Stock, par value $0.01 per
share, of the Company.

 

“Class A
Directors” means, collectively, the directors nominated and elected by the Class A
Stockholders, voting as a separate class, in accordance with the Certificate of
Incorporation and in the manner set forth in the Class A Voting Agreement.

 

“Class A
Stockholders” has the meaning set forth in the preamble to this Agreement.

 

“Class A
Voting Agreement” means the Voting Agreement, dated as of the date hereof,
by and among the Class A Stockholders party thereto, as it may be amended
from time to time.

 

15

 

“Class B
Common Stock” means the Class B Common Stock, par value $0.01 per
share, of the Company.

 

“Class B
Director” means the director nominated and elected by the Class B
Stockholders, voting as a separate class, in accordance with the Certificate of
Incorporation.

 

“Class B
Holder” has the meaning set forth in Section 1.5.

 

“Class B
Stockholders” has the meaning set forth in the preamble to this Agreement.

 

“Class C
Common Stock” means the Class C Common Stock, par value $0.01 per
share, of the Company.

 

“Class C
Stockholders” has the meaning set forth in the preamble to this Agreement.

 

“Class C
Voting Agreement” means the Voting Agreement, dated as of the date hereof,
by and among the Class C Stockholders party thereto, as it may be amended
from time to time.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

“Committee”
means any committee of the Board.

 

“Common
Stock” means, collectively, the Class A Common Stock, the Class B
Common Stock and the Class C Common Stock, and any securities issued in
respect thereof, or in substitution therefor, in connection with any stock
split, dividend or combination, or any reclassification, recapitalization,
merger, consolidation, exchange or other similar reorganization.

 

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

 

“Company”
has the meaning set forth in the Preamble.

 

16

 

“Compensation
Committee” means the Compensation Committee of the Board established in
accordance with the Certificate of Incorporation.

 

“Competitor”
means any Person that, directly or through any Affiliate, is engaged
principally in the retail sale of natural gas and electricity to end-use
residential and small commercial customers in deregulated markets in the U.S.
and Canada.

 

“Control”
means the power to direct the affairs of a Person by reason of ownership of
voting securities, by contract or otherwise.

 

“Corporate
Opportunity” has the meaning set forth in Section 1.4.

 

“Discharge
of ISDA Obligations” has the meaning given such term in the Certificate of
Incorporation, as of September 22, 2009.

 

“Drag-Along
Notice” has the meaning set forth in Section 2.4(a).

 

“Drag-Along
Transaction” has the meaning set forth in Section 2.4(a).

 

“Equity
Securities” means any and all shares of Common Stock of the Company,
securities of the Company convertible into, or exchangeable or exercisable for,
such shares, and options, warrants or other rights to acquire such shares.

 

“ERISA”
has the meaning set forth in Section 2.4(c).

 

“Excess
Amount” has the meaning set forth in Section 2.5(c).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations promulgated thereunder.

 

“Exchange
Offer” has the meaning set forth in the Recitals.

 

“Fair
Market Value” means with respect to any non-cash consideration, the fair
market value of such non-cash consideration as determined in good faith by
the Board.

 

17

 

“Family
Group” means, with respect to any Stockholder who is a natural person, (i) such
Stockholder’s spouse, (ii) any lineal ancestor or descendant of
such Stockholder (descendants, for this purpose, shall include adopted
children), (iii) any trust or trusts in which any of the foregoing,
individually or collectively, has, directly or indirectly, at least a majority
of the beneficial interest, and (iv) the estate of such Stockholder
(and his executor(s) or administrator(s)) and the heirs and legatees
thereof.

 

“Fully
Diluted Basis” means the total number of outstanding shares of Common Stock
calculated as if (i) all securities convertible into or
exchangeable for shares of Common Stock at the time of calculation have been
fully converted into or exchanged for shares of Common Stock and (ii) all
outstanding warrants, options or other rights for the purchase of shares of
Common Stock or securities convertible into or exchangeable for shares of
Common Stock have been fully exercised as of such time, in each case, without
regard to whether such instruments are then so convertible, exchangeable or
exercisable.

 

“Governmental
Entity” means any federal, state, local or foreign court, legislative,
executive or regulatory authority or agency.

 

“Group”
has the meaning assigned to such term in Section 13(d)(3) of the
Exchange Act.

 

“Information”
means all information (including, without limitation, proprietary and financial
information) about the Company or any of its Subsidiaries that is or has been
furnished to any Stockholder or any of its Representatives by or on behalf of
the Company or any of its Subsidiaries, or any of their respective
Representatives (whether written or oral or in electronic or other form and
whether prepared by the Company, its advisers or otherwise), together with all
written or electronically stored documentation prepared by such Stockholder or
its Representatives based on or reflecting, in whole or in part, such
information; provided that the term “Information” does not include any
information that (x) is or becomes generally available to the
public through no action or omission by any Stockholder or its Representatives
or (y) is or becomes available to such Stockholder on a
non-confidential basis from a source (other than the Company or any of its
Subsidiaries, or any of their respective Representatives) that, to the best of
such Stockholder’s knowledge after reasonable inquiry, is not prohibited from
disclosing such information to such Stockholder or its Representatives by a
contractual, legal or fiduciary obligation.

 

“Initiator”
has the meaning set forth in Section 2.5(a).

 

“Initiator
Notice” has the meaning set forth in Section 2.5(b).

 

18

 

“Intercreditor
Agreement” means the Intercreditor and Subordination Agreement, dated as of
September 22, 2009, by and among the Company, the pledgors from time to
time party thereto, Sempra Energy Trading LLC, in its capacity as facility
agent, and Law Debenture Trust Company of New York, in its capacity as
indenture trustee, as it may be amended from time to time.

 

“IPO”
means the initial Public Offering of the Company that generates gross cash
proceeds of not less than $75,000,000 (including primary and secondary sales).

 

“Lock-Up
Agreement” has the meaning set forth in the Recitals.

 

“Management
Incentive Plan” has the meaning set forth in the Recitals.

 

“Master
ISDA Agreements” has the meaning set forth in Section 1.5.

 

“New
Notes Indenture” means the trust indenture agreement, dated as of September 22,
2009, by and among the Company, the Subsidiary Guarantors named therein, and
Law Debenture Trust Company of New York, as trustee, as amended, amended and
restated, supplemented or otherwise modified form time to time in accordance
with its terms.

 

“Notes”
has the meaning set forth in the Recitals.

 

“Offer
Documents” has the meaning set forth in the Recitals.

 

“Permitted
Transferee” means, (i) with respect to any Stockholder, any
Affiliate of a Stockholder; (ii) with respect to any Stockholder
that is a natural person, any other member of the Family Group of such
Stockholder; (iii) with respect to any Stockholder that is a trust,
(A) any beneficiary of such trust that is a member of the Family
Group of the settlor of such trust or (B) any new or reconstituted
trust the settlor of which is the same as the settlor of the Transferring trust
(or the executor, administrator or personal representative of such settlor
acting in such settlor’s name) and the beneficiaries of which are members of
the Family Group of the settlor of such trust; and (iv) with respect
to any Stockholder that is a legal entity, any general partner, limited
partner, stockholder or member of such Stockholder, if the applicable Transfer
is in connection with any liquidation of, or a distribution with respect to an
equity interest in, such Stockholder; provided, however, that in
no event shall any competitor of the Company or any of its Subsidiaries
constitute a “Permitted Transferee.”  The
Company or any of its Subsidiaries

 

19

 

shall be Permitted Transferees, subject to any applicable approvals
required pursuant to the Certificate of Incorporation.  Any Stockholder shall also be a Permitted
Transferee of the Permitted Transferees of itself.

 

“Person”
means any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivisions
thereof, or any Group comprised of two or more of the foregoing.

 

“Plan
Assets” has the meaning set forth in Section 2.4(c).

 

“Prohibited
Transaction” means any Transfer of Equity Securities that (i) violates
or causes a default, “change of control” or similar event under any of the
Company’s or any of its Subsidiaries’ material debt agreements, indentures and
other agreements or instruments evidencing material indebtedness of the Company
or any of its Subsidiaries, as such agreements, indentures and instruments may
be amended or modified from time to time in accordance with their terms (other
than any transaction approved by Board Special Approval, if in connection with
such Transfer such agreements, indentures and instruments are amended, modified
or refinanced such that there does not exist a violation, default, “change of
control” or similar event pursuant to such material indebtedness), (ii) violates
applicable securities laws or the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 or would cause the Company or any of its Subsidiaries to be in
violation of any Applicable Law, (iii) would result in the assets
of the Company or any of its Subsidiaries constituting Plan Assets, (iv) would,
to the knowledge of the transferor of such Equity Securities after due inquiry,
result in the Company’s meeting the stock ownership requirement of Section 542(a)(2) of
the Code, (v) would cause the Company to be Controlled by or under
common Control with an “investment company” for purposes of the Investment
Company Act of 1940, as amended, or (vi) would cause the Company to have a
class of equity securities held of record by five hundred (500) or more persons
(within the meaning of Section 13(g) of the Exchange Act).

 

“Pro
Rata Share” has the meaning set forth in Section 2.5(c).

 

“Public
Offering” means an offering of Common Stock pursuant to a registration
statement filed in accordance with the Securities Act (other than a
registration statement on Form S-4 or Form S-8, or their successors,
or any registration statement covering only securities proposed to be issued in
exchange for securities or assets of another entity).

 

“Purchase
Offer” has the meaning set forth in Section 2.5(b).

 

20

 

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

 

“Related
Agreements” means, collectively, the Master ISDA Agreements, the
Intercreditor Agreement, the Class A Voting Agreement, the Class C
Voting Agreement and the Registration Rights Agreement.

 

“Representatives”
means with respect to any Person, any of such Person’s, or its Affiliates’,
directors, officers, employees, general partners, Affiliates, direct or
indirect shareholders, members or limited partners, attorneys, accountants,
financial and other advisers, and other agents and representatives.

 

“Restructuring”
has the meaning set forth in the Recitals.

 

“ROFR
Exercise Period” has the meaning set forth in Section 2.5(c).

 

“ROFR
Notice” has the meaning set forth in Section 2.5(c).

 

“ROFR
Stockholders” has the meaning set forth in Section 2.5(a).

 

“Rule 144”
means Rule 144 under the Securities Act (or any successor rule).

 

“Section 2.4
Transferring Stockholder” has the meaning set forth in Section 2.4(a).

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations promulgated thereunder.

 

“Selling
Stockholder” has the meaning set forth in Section 2.4(a).

 

“Sempra”
has the meaning set forth in the Certificate of Incorporation.

 

“Stockholder
Group Member” has the meaning set forth in Section 1.4.

 

21

 

“Stockholder
Special Approval” means the prior approval of (i) Class A
Stockholders holding in the aggregate at least 70% of the issued and
outstanding shares of Class A Common Stock, voting as a separate class, (ii) Stockholders
holding in the aggregate at least 75% of the issued and outstanding shares of
Common Stock, voting as a single class, and (iii) if required under
the Certificate of Incorporation, Class B Stockholders holding in the
aggregate at least 70% of the issued and outstanding shares of Class B
Common Stock, voting as a separate class.

 

“Stockholder
Transferee” means any Person that (i) has among its
shareholders, members, partners or other equity holders Stockholders that
collectively hold, immediately prior to the effective date of the applicable
Drag-Along Transaction, more than 20% of the issued and outstanding shares of
Common Stock, or any Affiliates of such Stockholders, or (ii) is
more than 20% owned or controlled by, directly or indirectly, by Persons that
are Stockholders immediately prior to the effective date of the applicable
Drag-Along Transaction, or any Affiliates of such Stockholders.

 

“Stockholders”
means (i) the Common Stockholders and (ii) any other
holder of any Equity Securities that becomes a party to this Agreement after
the date and pursuant to the terms hereof; provided that any Person
shall cease to be a Stockholder once it ceases to hold any Equity Securities.

 

“Subsidiary”
means, with respect to any Person, any corporation or other organization,
whether incorporated or unincorporated, (i) of which such Person or
any other Subsidiary of such Person is a general partner (excluding
partnerships, the general partnership interests of which held by such Person or
any Subsidiary of such Person do not have a majority of the voting interests in
such partnership), or (ii) at least a majority of the securities or
other interests of which having, by their terms, ordinary voting power to elect
a majority of the board of directors or others performing similar functions
with respect to such corporation or other organization, is directly or
indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries.

 

“Taconic”
means Taconic Capital Advisors LP, a Delaware limited partnership.

 

“Taconic
Funds” means, collectively, (i) Taconic Opportunity Fund LP, (ii) Taconic
Opportunity Master Fund LP, (iii) Taconic Master Fund LP, (iv) Taconic
Capital Partners 1.5 LP, (v) Taconic Capital Partners LP and (vi) Taconic
Master Fund 1.5 LP.

 

“Tag-Along
Participant” has the meaning set forth in Section 2.3(a).

 

22

 

“Tag-Along
Transfer” has the meaning set forth in Section 2.3(a).

 

“Third-Party
Offeror” has the meaning set forth in Section 2.5(b).

 

“Transaction
Documents” means, collectively, this Agreement, the Certificate of
Incorporation, the Bylaws, the Class A Voting Agreement, the Class C
Voting Agreement, the Registration Rights Agreement and the Management
Incentive Plan.

 

“Transfer”
means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of, either voluntarily or involuntarily, or to
enter into any contract, option or other arrangement or understanding with
respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation
or similar disposition of, any shares of Equity Securities owned by a Person or
any interest (including but not limited to a beneficial interest) in any shares
of Equity Securities owned by a Person.

 

“Transferee”
means any Person to whom any Stockholder or any Transferee thereof Transfers
Equity Securities in accordance with the terms hereof.

 

“Transfer
Notice” has the meaning set forth in Section 2.3(a).

 

“Transfer
Price” has the meaning set forth in Section 2.5(b).

 

“Transferred
Securities” has the meaning set forth in Section 2.3(a).

 

“Transfer
Shares” has the meaning set forth in Section 2.5(a).

 

“Transferring
Stockholder” has the meaning set forth in Section 2.3(a).

 

“Voting
Securities” means, at any time, shares of any class of Equity Securities of
the Company, that are then entitled to vote generally in the election of
directors.

 

3.2           Terms Generally.  The words “hereby”, “herein”, “hereof”, “hereunder”
and words of similar import refer to this Agreement as a whole (including the
Schedules and Annexes hereto) and not merely to the specific section, paragraph
or clause in which such word appears. 
All references herein to Articles, Sections, Schedules and Annexes shall
be deemed references to Articles and Sections of, and Schedules and Annexes to,
this Agreement unless the context shall otherwise require.  The words “include”, 

 

23

 

“includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The definitions given for terms in this Article III
and elsewhere in this Agreement shall apply equally to both the singular and
plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  References herein to any agreement or
document (including any of the Transaction Documents) shall be deemed
references to such agreement or document as it may be amended, restated or
otherwise revised from time to time.

 

ARTICLE IV

 

MISCELLANEOUS

 

4.1           Termination.  Subject to the early termination of any
provision as a result of an amendment to this Agreement agreed to by the
Company and the Stockholders as provided under Section 4.6(a), this
Agreement may be terminated only by the unanimous agreement of the Company and
all then-current Stockholders, provided that the provisions of Section 1.3
and Article II (other than Sections 2.1(a) and 2.6) shall
automatically terminate immediately upon the consummation of an IPO that
complies with Section 2.1(c). 
Nothing in this Agreement shall relieve any party from any liability for
the breach of any obligations set forth in this Agreement.

 

4.2           Confidentiality.  Each party hereto agrees to, and shall cause
its Representatives to, keep confidential and not divulge any Information, and
to use, and cause its Representatives to use, such Information only in
connection with the operation of the Company and its Subsidiaries.  Notwithstanding the foregoing, nothing in
this Agreement shall prevent any party hereto from disclosing such Information (a) upon
the order of any court or administrative agency, (b) upon the
request or demand of any regulatory agency or authority having jurisdiction
over such party, (c) to the extent compelled by legal process or
required or requested pursuant to subpoena, interrogatories or other discovery
requests, (d) to the extent necessary in connection with the
exercise of any remedy hereunder, (e) to other Stockholders, (f) to
such party’s Representatives that in the reasonable judgment of such party need
to know such Information or (g) to a proposed Transferee in connection
with a proposed Transfer of Equity Securities from such Stockholder, subject to
the execution by the proposed Transferee of a confidentiality agreement
substantially in the form attached as Annex C hereto or otherwise in
form reasonably satisfactory to the Company; provided, however,
that no Information may be made available to any proposed Transferee that is a
material customer, supplier or competitor of the Company or any of its
Subsidiaries; and provided  further  that, in the case of clause (a), (b) or (c), such
party shall notify the other parties hereto of the proposed disclosure as far
in advance of such disclosure as practicable and use reasonable efforts to
ensure that any Information so disclosed is accorded confidential treatment,
when and if available.

 

24

 

4.3           Restrictions
on Other Agreements; Conflicts with Organizational Documents.

 

(a)           Following the date hereof, no
Stockholder shall enter into or agree to be bound by any stockholder agreements
or arrangements of any kind with any Person with respect to any the voting of
Equity Securities, except the Registration Rights Agreement or as otherwise
expressly permitted hereunder.

 

(b)           Except as otherwise expressly
provided in this Agreement, the provisions of the Certificate of Incorporation
shall be controlling if any such provisions or the operation thereof conflict
with the provisions of this Agreement. 
Each of the parties covenants and agrees to vote or cause to be voted
their Voting Securities, and to take any other action reasonably requested by
the Company or any Stockholder, to amend this Agreement so as to avoid any
conflict with the provisions hereof.

 

(c)           The provisions of this Agreement
shall be controlling if any such provisions or the operation thereof conflict
with the provisions of the Bylaws.  Each
of the parties covenants and agrees to vote or cause to be voted their Voting
Securities, and to take any other action reasonably requested by the Company or
any Stockholder, to amend the Bylaws so as to avoid any conflict with the
provisions hereof.

 

4.4           Further Assurances.  Each party hereto shall do and perform or
cause to be done and performed all such further acts and things, and shall
execute and deliver all such further agreements, certificates, instruments and
documents, as any other party hereto reasonably may request in order to carry
out the provisions of this Agreement and the consummation of the transactions
contemplated hereby.

 

4.5           No Recourse.  Notwithstanding anything to the contrary in
this Agreement, the Company and each Stockholder agrees and acknowledges that
no recourse under this Agreement or any documents or instruments delivered in
connection with this Agreement, shall be had against any current or future
director, officer, employee, general or limited partner or member of any
Stockholder or of any Affiliate or assignee thereof, whether by the enforcement
of any assessment or by any legal or equitable proceeding, or by virtue of any
statute, regulation or other Applicable Law, it being expressly agreed and
acknowledged that no personal liability whatsoever shall attach to, be imposed
on or otherwise be incurred by any current or future officer, agent or employee
of any Stockholder or any current or future member of any Stockholder or any
current or future director, officer, employee, partner or member of any
Stockholder or of any Affiliate or assignee thereof, as such for any obligation
of any Stockholder under this Agreement or any documents or instruments
delivered in connection with this Agreement for any claim based on, in respect
of or by reason of such obligations or their creation.

 

25

 

4.6           Amendment; Waivers, etc.

 

(a)           This Agreement may be amended, and
the Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, only if any such amendment, action or
omission to act has been approved by (i) Board Special Approval and
(ii) Stockholder Special Approval; provided, however,
that this Agreement may not be amended in a manner adversely affecting the
rights or obligations of any Stockholder that does not adversely affect the
rights or obligations of all similarly situated Stockholders in the same manner
without the consent of such Stockholder.

 

(b)           The failure of any party to enforce
any of the provisions of this Agreement shall in no way be construed as a
waiver of such provisions and shall not affect the right of such party thereafter
to enforce each and every provision of this Agreement in accordance with its
terms.  Any Stockholder may waive (in
writing) the benefit of any provision of this Agreement with respect to itself
for any purpose.  Any such waiver shall
constitute a waiver only with respect to the specific matter described in such
writing and shall in no way impair the rights of the Stockholder granting such
waiver in any other respect or at any other time.

 

4.7           Assignment.  Neither this Agreement nor any right or
obligation arising under this Agreement may be assigned by any party without
the prior written consent of the other parties.

 

4.8           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, successors
and permitted assigns.

 

4.9           No Third Party Beneficiaries.  Nothing in this Agreement shall confer any
rights upon any Person other than the parties hereto and each such party’s
respective heirs, successors and permitted assigns.

 

4.10         Notices.  All notices, requests, demands, waivers and
other communications required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been duly given if (a) delivered
personally, (b) mailed, certified or registered mail with postage
prepaid, (c) sent by reputable overnight courier or (d) sent
by fax (provided a confirmation copy is sent by one of the other methods set
forth above), as follows (or to such other address as the party entitled to
notice shall hereafter designate in accordance with the terms hereof):

 

(i)                                if to the Company, addressed to it at:

595 Summer Street

Suite 300

Stamford, CT 06901-2304

Attention: 
Chief Executive Officer

Fax number: 
(203) 425-9562

 

(ii)                             if to any Person that is a Stockholder as
of the date hereof, to its address set forth on the signature page of such
Stockholder to this Agreement, 

 

26

 

with a copy (which shall not constitute notice) to any
party so indicated thereon; or

 

(iii)          if to any Person that becomes a
Stockholder after the date hereof, to the name and address specified for such
Stockholder in the joinder agreement to this Agreement executed and delivered
by such Stockholder in accordance with Section 2.1(d).

 

All such notices,
requests, demands, waivers and other communications shall be deemed to have
been received (w) if by personal delivery, on the day delivered, (x) if
by certified or registered mail, on the fifth Business Day after the mailing
thereof, (y) if by overnight courier, on the day delivered, or (z) if
by fax, on the day delivered.

 

4.11         Severability.  Any term or provision of this Agreement which
is invalid, illegal or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without rendering invalid, illegal or unenforceable the
remaining terms and provisions of this Agreement or affecting the validity,
illegality or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction.  If
any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as is enforceable.  Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the Parties
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated herein are consummated as
originally contemplated to the fullest extent possible.

 

4.12         Headings.  The headings contained in this Agreement are
for purposes of convenience only and shall not affect the meaning or
interpretation of this Agreement.

 

4.13         Entire Agreement.  This Agreement (including the Schedules and
Annexes hereto), together with the other Transaction Documents, constitute the
entire agreement and supersedes all prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof.

 

4.14         Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the State of New York (regardless of
the laws that might otherwise govern under applicable principles or rules of
conflicts of law to the extent such principles or rules are not
mandatorily applicable by statute and would require the application of the laws
of another jurisdiction).

 

4.15         Arbitration.

 

(a)           Any dispute, controversy, or claim
arising out of, relating to, or in connection with this contract, or the
breach, termination, or validity thereof, shall be finally settled by
arbitration.  The arbitration shall be
conducted in accordance with the 

 

27

 

Commercial
Arbitration Rules of the American Arbitration Association (the “AAA”)
in effect at the time of the arbitration, except as they may be modified herein
or by mutual agreement of the parties. 
Notwithstanding the provisions of Section 4.14, the arbitration and
this clause shall be governed by Title 9 (Arbitration) of the United States
Code.  The seat of the arbitration shall
be New York, New York, United States of America, and it shall be conducted in
the English language.  The parties submit
to jurisdiction in the state and federal courts in the State, County and City
of New York for the limited purpose of enforcing this agreement to arbitrate.

 

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

 

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

 

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

 

4.16         Waiver of Certain Damages.  NO PARTY SHALL BE ENTITLED TO ANY RECOVERY
UNDER THIS AGREEMENT FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR
INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES.  THIS SECTION 4.16 SHALL SURVIVE THE
TERMINATION OF THIS AGREEMENT AND ALL TRANSACTIONS CONTEMPLATED HEREBY.

 

28

 

4.17         Counterparts; Facsimile Signatures.  This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.  This Agreement may be executed by
facsimile signature(s) or in pdf file.

 

29

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement by their authorized representatives as of the date
first above written.

 

	
   

  	
  Company:

  
	
   

  	
   

  
	
   

  	
  MXENERGY
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A.
  Mayer

  
	
   

  	
   

  	
  Name: Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title: President

  

 

[Signature Page to
Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement by their authorized representatives as of the date
first above written.

 

 

	
   

  	
  CLASS A
  STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DENHAM
  COMMODITY PARTNERS LP

  
	
   

  	
   

  
	
   

  	
  By: Denham
  Commodity Partners GP LP

  
	
   

  	
   

  
	
   

  	
  By: Denham GP
  LLC

  
	
   

  	
  By:

  	
  /s/ Paul Winters

  
	
   

  	
  Name: Paul
  Winters

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  200 Clarendon
  Street, 25th Floor

  
	
   

  	
  Boston, MA 02116

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORGAN
  STANLEY & CO., INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title:
  Authorized Signature

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  Morgan
  Stanley & Co.

  
	
   

  	
  Harborside
  Financial Center

  
	
   

  	
  230 Plaza #2,
  7th Floor

  
	
   

  	
  Jersey City, NJ
  07311

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HARE &
  CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title:
  Authorized Signature

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  The Bank of New
  York

  
	
   

  	
  One Wall Street

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Reorg Dept, 6th
  Floor

  
	
   

  	
  New York, NY
  10826

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PENY &
  CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title:
  Authorized Signature

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  The Bank of New
  York

  
	
   

  	
  One Wall Street

  
	
   

  	
  Reorg Dept, 6th
  Floor

  
	
   

  	
  New York, NY
  10826

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEAPADDLE &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEINE &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  MARROW &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name: [Illegible]

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEADMARKER &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESKIMO & CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BRITISH &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice
  President

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEACONGALE & CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SALTSHIP &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BIGBELL &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  FIDDLES &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MELLON
  TRUST OF NEW ENGLAND, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alisia Pugh

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title:
  Supervisor

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices

  
	
   

  	
  525 William Penn
  Place

  
	
   

  	
  RM 0300

  
	
   

  	
  Pittsburgh, PA
  15259

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAMULOS
  MASTER FUND LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P.
  Iuliano

  
	
   

  	
  Name: Michael P.
  Iuliano

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices

  
	
   

  	
  Camulos Capital
  LP

  
	
   

  	
  3 Landmark
  Square, 4th Floor

  
	
   

  	
  Stamford, CT
  06901

  
	
   

  	
  Attn: General
  Counsel

  

 

[Signature Page to Stockholders
Agreement]

 

 

	
   

  	
  CAMULOS
  LOAN VEHICLE FUND I LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P.
  Iuliano

  
	
   

  	
  Name: Michael P.
  Iuliano

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices

  
	
   

  	
  Camulos Capital
  LP

  
	
   

  	
  3 Landmark
  Square, 4th Floor

  
	
   

  	
  Stamford, CT
  06901

  
	
   

  	
  Attn: General
  Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MARINER
  CRA RELATIVE VALUE FUND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry
  Campbell

  
	
   

  	
  Name: Barry
  Campbell

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  11 Ivy Place

  
	
   

  	
  Upper Saddle
  River, NJ 07458

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BATTERY
  PARK HIGH YIELD LONG SHORT FUND LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Crall

  
	
   

  	
  Name: David
  Crall

  
	
   

  	
  Title: Portfolio
  Manager

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  2 World
  Financial Center

  
	
   

  	
  Building B, 18th
  Floor

  
	
   

  	
  New York, NY
  10281

  
	
   

  	
   

  
	
   

  	
  BATTERY
  PARK HIGH YIELD OPPORTUNITY MASTER FUND LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Crall

  
	
   

  	
  Name: David
  Crall

  
	
   

  	
  Title: Portfolio
  Manager

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  2 World
  Financial Center

  
	
   

  	
  Building B, 18th
  Floor

  
	
   

  	
  New York, NY
  10281

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BATTERY
  PARK HIGH YIELD OPPORTUNITY STRATEGIC FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Crall

  
	
   

  	
  Name: David
  Crall

  
	
   

  	
  Title: Portfolio
  Manager

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  2 World
  Financial Center

  
	
   

  	
  Building B, 18th
  Floor

  
	
   

  	
  New York, NY
  10281

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VELVET &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOREHOOKS & CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WHARFNET &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NLA &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard
  Burns

  
	
   

  	
  Name: Richard
  Burns

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  762 Mill Road

  
	
   

  	
  Carrabelle, FL
  32322

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jason Joffe

  
	
   

  	
  Name: Jason Joffe

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  692 London Berry
  Road

  
	
   

  	
  Atlanta, GA
  30327-4956

  
	
   

  	
   

  
	
   

  	
  /s/ Allison G.
  Young

  
	
   

  	
  Name: Allison G.
  Young

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  1498 Boulder
  Lane

  
	
   

  	
  Woodstock, IL
  60098-7104

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott A.
  Simon

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title:
  Authorized Signature

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  DB Securities
  Services

  
	
   

  	
  100 Plaza One,
  2nd Floor

  
	
   

  	
  Jersey City, NJ
  07311

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TACONIC
  CAPITAL PARTNERS LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua
  Miller

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY
  10025

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TACONIC
  MASTER FUND 1.5 LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua
  Miller

  
	
   

  	
  Title: Principal

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY
  10025

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TACONIC
  CAPITAL PARTNERS 1.5 LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua
  Miller

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY 10025

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TACONIC
  OPPORTUNITY MASTER FUND LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua
  Miller

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY
  10025

  
	
   

  	
   

  
	
   

  	
  TACONIC
  OPPORTUNITY FUND LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua
  Miller

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY
  10025

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAMULOS
  LOAN VEHICLE FUND I LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices

  
	
   

  	
  Camulos Capital
  LP

  
	
   

  	
  Three Landmark
  Square

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAMZOK
  CAPITAL

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name:
  [Illegible]

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  [Illegible]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS
  FINANCIAL SERVICES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Luis
  Fernandes

  
	
   

  	
  Name: Luis
  Fernandes

  
	
   

  	
  Title: Sr. Rep. –
  Corp. Actions

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  UBS Financial
  Services Inc.

  
	
   

  	
  1000 Harbor
  Boulevard

  
	
   

  	
  Weehawken, New
  Jersey 07086

  
	
   

  	
  Attention: Vanessa Hanks

  

 

[Signature Page to
Stockholders Agreement]

 

 

 

	
   

  	
  Corporate
  Actions Physical Processing

  
	
   

  	
  6th Floor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN
  SACHS AND CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Piotr Uzar

  
	
   

  	
  Name: Piotr Uzar

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  Goldman
  Sachs & Co.

  
	
   

  	
  30 Hudson Street

  
	
   

  	
  Jersey City, NJ
  07302

  
	
   

  	
  Attn: Reorg Dept

  
	
   

  	
  4th Floor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE VARIABLE
  ANNUITY LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
  By: AIG
  Global Investment Corp. Investment Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Lindvall

  
	
   

  	
  Name: Tim
  Lindvall

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o AIG Global
  Investment Corp.

  
	
   

  	
  2929 Allen
  Parkway, A37-01

  
	
   

  	
  Houston, Texas
  77019

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTERN
  NATIONAL LIFE INSURANCE COMPANY (f/k/a AIG Annuity Insurance Company)

  
	
   

  	
   

  
	
   

  	
  By: AIG
  Global Investment Corp. Investment Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Lindvall

  
	
   

  	
  Name: Tim
  Lindvall

  
	
   

  	
  Title: Vice President

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o AIG Global
  Investment Corp.

  
	
   

  	
  2929 Allen
  Parkway, A37-01

  
	
   

  	
  Houston, Texas
  77019

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEWPORT &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLEETBIRD &
  CO.

  
	
   

  	
   

  
	
   

  	
  By: State Street
  Bank & Trust Co., a partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Feeley

  
	
   

  	
  Name: Michael
  Feeley

  
	
   

  	
  Title: Custody
  Clerk

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  State Street
  Bank & Trust Co.

  
	
   

  	
  PO Box 5756

  
	
   

  	
  Boston, MA 02206

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TACONIC
  MASTER FUND LP

  
	
   

  	
   

  
	
   

  	
  By: Taconic
  Capital Advisors, L.P., as Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua
  Miller

  
	
   

  	
  Name: Joshua Miller

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Taconic
  Capital Advisors, L.P.

  
	
   

  	
  450 Park Avenue

  
	
   

  	
  New York, NY
  10025

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  CLASS B
  STOCKHOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEMPRA
  ENERGY TRADING LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Mitchell

  
	
   

  	
  Name: Michael
  Mitchell

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  600 Washington
  Blvd.

  
	
   

  	
  Stamford, CT
  06901

  
	
   

  	
  Attn: General
  Counsel

  

 

[Signature Page to
Stockholders Agreement]

 

 

	
   

  	
  CLASS C
  STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jeffrey A.
  Mayer

  
	
   

  	
  Name: Jeffrey A.
  Mayer

  
	
   

  	
   

  
	
   

  	
  /s/ Chaitu
  Parikh

  
	
   

  	
  Name: Chaitu
  Parikh

  
	
   

  	
   

  
	
   

  	
  /s/ Carole R.
  Artman-Hodge

  
	
   

  	
  Name: Carole R.
  Artman Hodge

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHARTER
  MX LLC

  
	
   

  	
  By: Charterhouse
  Equity Partners IV, L.P., its managing member

  
	
   

  	
   

  
	
   

  	
  By: CHUSA Equity
  Investors IV, L.P., its general partner

  
	
   

  	
   

  
	
   

  	
  By: Charterhouse
  Equity IV, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William M.
  Landuyt

  
	
   

  	
  Name: William M.
  Landuyt

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  c/o Charterhouse
  Group, Inc.

  
	
   

  	
  535 Madison
  Avenue

  
	
   

  	
  New York, NY
  10022

  
	
   

  	
  Attention:
  William Landuyt

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Proskauer Rose
  LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY
  10036

  
	
   

  	
  Attention: Stephen Rubin, Esq.

  

 

[Signature Page to Class
C Voting Agreement]

 

 

	
   

  	
  DENHAM
  COMMODITY PARTNERS LP

  
	
   

  	
   

  
	
   

  	
  By: Denham Commodity
  Partners GP LP

  
	
   

  	
   

  
	
   

  	
  By: Denham GP
  LLC

  
	
   

  	
  By:

  	
  /s/ Paul Winters

  
	
   

  	
  Name: Paul
  Winters

  
	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  200 Clarendon
  Street, 25th Floor

  
	
   

  	
  Boston, MA 02116

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAROLE
  R. ARTMAN-HODGE 7 YR GRAT

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carole R.
  Artman-Hodge

  
	
   

  	
  Name: Carole R.
  Atman-Hodge

  
	
   

  	
  Title: [Blank]

  
	
   

  	
   

  
	
   

  	
  PEQUOT
  ENTERPRISES LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey A.
  Mayer

  
	
   

  	
  Name: Jeffrey A.
  Mayer

  
	
   

  	
  Title: Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREENHILL
  CAPITAL PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL
  CAPITAL PARTNERS (CAYMAN), L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL
  CAPITAL PARTNERS (EXECUTIVES), L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREENHILL
  CAPITAL, L.P.

  
	
   

  	
   

  
	
   

  	
  By: GCP Managing
  Partner, L.P., a managing general partner of each of the foregoing
  partnerships

  
	
   

  	
   

  
	
   

  	
  By: Greenhill
  Capital Partners, LLC, its general partner

  

 

[Signature Page to Class
C Voting Agreement]

 

 

	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
   

  	
  Name: [Blank]

  
	
   

  	
  Title: [Blank]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
  300 Park Avenue,
  23rd Floor

  
	
   

  	
  New York, NY
  10022

  
	
   

  	
  Attention:
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JED
  COMMUNICATIONS ASSOCIATES

  
	
   

  	
   

  
	
   

  	
  By: /s/ Daniel
  G. Bergstein

  
	
   

  	
  Name: Daniel G.
  Bergstein

  
	
   

  	
  Title: President

  

 

[Signature Page to Class
C Voting Agreement]

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