Document:

exv10w1

 

Exhibit 10.1

EXECUTION COPY

 

CREDIT AGREEMENT

Dated as of May 24, 2007

among

SPECTRA ENERGY PARTNERS OLP, LP

as the Borrower,

SPECTRA ENERGY PARTNERS, LP

as Parent Guarantor,

THE LENDERS PARTY HERETO

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent

 

CITIBANK, N.A.,

as Syndication Agent,

JPMORGAN CHASE BANK, N.A., SUNTRUST BANK and

ROYAL BANK OF SCOTLAND PLC

as Documentation Agents,

and

WACHOVIA CAPITAL MARKETS, LLC

and

CITIGROUP GLOBAL MARKETS INC.,

as Co-Lead Arrangers and Joint Book Runners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	SECTION 1. DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	 

	 	 	1.1	 	 	Definitions
	 	 	1	 
	 

	 	 	1.2	 	 	Computation of Time Periods
	 	 	23	 
	 

	 	 	1.3	 	 	Accounting Terms
	 	 	23	 
	 

	 	 	1.4	 	 	Time
	 	 	24	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 2. LOANS	 	 	24	 
	 

	 	 	2.1	 	 	Revolving and Term Loan Commitments
	 	 	24	 
	 

	 	 	2.2	 	 	Letters of Credit
	 	 	24	 
	 

	 	 	2.3	 	 	Method of Borrowing for Revolving Loans and Term Loans
	 	 	29	 
	 

	 	 	2.4	 	 	Funding of Revolving Loans and Term Loans
	 	 	30	 
	 

	 	 	2.5	 	 	Continuations and Conversions
	 	 	30	 
	 

	 	 	2.6	 	 	Minimum Amounts
	 	 	31	 
	 

	 	 	2.7	 	 	Reductions of Revolving Committed Amount
	 	 	31	 
	 

	 	 	2.8	 	 	Swingline Loans
	 	 	31	 
	 

	 	 	2.9	 	 	Notes
	 	 	33	 
	 

	 	 	2.10	 	 	Increases in Revolving Committed Amount; Extension of Maturity Date
	 	 	33	 
	 

	 	 	2.11	 	 	Additional Term Loans
	 	 	35	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 3. PAYMENTS	 	 	35	 
	 

	 	 	3.1	 	 	Interest
	 	 	35	 
	 

	 	 	3.2	 	 	Prepayments
	 	 	36	 
	 

	 	 	3.3	 	 	Payment of Loans in full at Maturity
	 	 	37	 
	 

	 	 	3.4	 	 	Fees
	 	 	37	 
	 

	 	 	3.5	 	 	Place and Manner of Payments
	 	 	38	 
	 

	 	 	3.6	 	 	Pro Rata Treatment
	 	 	39	 
	 

	 	 	3.7	 	 	Computations of Interest and Fees
	 	 	39	 
	 

	 	 	3.8	 	 	Sharing of Payments
	 	 	40	 
	 

	 	 	3.9	 	 	Evidence of Debt
	 	 	41	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 4. ADDITIONAL PROVISIONS	 	 	41	 
	 

	 	 	4.1	 	 	Eurodollar Loan Provisions
	 	 	41	 
	 

	 	 	4.2	 	 	Capital Adequacy
	 	 	43	 
	 

	 	 	4.3	 	 	Compensation
	 	 	44	 
	 

	 	 	4.4	 	 	Taxes
	 	 	44	 
	 

	 	 	4.5	 	 	Replacement of Lenders
	 	 	47	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 5. CONDITIONS PRECEDENT	 	 	47	 
	 

	 	 	5.1	 	 	Closing Conditions
	 	 	47	 
	 

	 	 	5.2	 	 	Conditions to Loans and Issuances of Letters of Credit
	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 6. REPRESENTATIONS AND WARRANTIES	 	 	50	 
	 

	 	 	6.1	 	 	Organization and Good Standing
	 	 	51	 
	 

	 	 	6.2	 	 	Due Authorization
	 	 	51	 
	 

	 	 	6.3	 	 	No Conflicts
	 	 	51	 

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	 	 	6.4	 	 	Consents
	 	 	51	 
	 

	 	 	6.5	 	 	Enforceable Obligations
	 	 	51	 
	 

	 	 	6.6	 	 	Financial Condition/Material Adverse Effect
	 	 	52	 
	 

	 	 	6.7	 	 	Taxes
	 	 	52	 
	 

	 	 	6.8	 	 	Compliance with Law
	 	 	52	 
	 

	 	 	6.9	 	 	Use of Proceeds; Margin Stock
	 	 	52	 
	 

	 	 	6.10	 	 	Government Regulation
	 	 	52	 
	 

	 	 	6.11	 	 	Solvency
	 	 	53	 
	 

	 	 	6.12	 	 	Environmental Matters
	 	 	53	 
	 

	 	 	6.13	 	 	Subsidiaries
	 	 	53	 
	 

	 	 	6.14	 	 	Litigation
	 	 	53	 
	 

	 	 	6.15	 	 	Collateral
	 	 	53	 
	 

	 	 	6.16	 	 	Material Contracts
	 	 	53	 
	 

	 	 	6.17	 	 	Anti-Terrorism Laws
	 	 	53	 
	 

	 	 	6.18	 	 	Compliance with OFAC Rules and Regulations
	 	 	54	 
	 

	 	 	6.19	 	 	Compliance with FCPA
	 	 	54	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 7. AFFIRMATIVE COVENANTS	 	 	54	 
	 

	 	 	7.1	 	 	Information Covenants
	 	 	54	 
	 

	 	 	7.2	 	 	Preservation of Existence and Franchises
	 	 	56	 
	 

	 	 	7.3	 	 	Books and Records
	 	 	57	 
	 

	 	 	7.4	 	 	Compliance with Law
	 	 	57	 
	 

	 	 	7.5	 	 	Payment of Taxes and Other Indebtedness
	 	 	57	 
	 

	 	 	7.6	 	 	Maintenance of Property; Insurance
	 	 	57	 
	 

	 	 	7.7	 	 	Use of Proceeds
	 	 	58	 
	 

	 	 	7.8	 	 	Inspections
	 	 	58	 
	 

	 	 	7.9	 	 	Maintenance of Ownership
	 	 	58	 
	 

	 	 	7.10	 	 	Financial Covenants
	 	 	58	 
	 

	 	 	7.11	 	 	Material Contracts
	 	 	59	 
	 

	 	 	7.12	 	 	Reserved
	 	 	59	 
	 

	 	 	7.13	 	 	Cash Collateral
	 	 	59	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 8. NEGATIVE COVENANTS	 	 	60	 
	 

	 	 	8.1	 	 	Nature of Business
	 	 	60	 
	 

	 	 	8.2.	 	 	Liens
	 	 	61	 
	 

	 	 	8.3	 	 	Consolidation and Merger
	 	 	62	 
	 

	 	 	8.4	 	 	Dispositions
	 	 	63	 
	 

	 	 	8.5	 	 	Transactions with Affiliates
	 	 	63	 
	 

	 	 	8.6	 	 	Indebtedness
	 	 	64	 
	 

	 	 	8.7	 	 	Investments
	 	 	66	 
	 

	 	 	8.8	 	 	Restricted Payments
	 	 	66	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 9. EVENTS OF DEFAULT	 	 	67	 
	 

	 	 	9.1	 	 	Events of Default
	 	 	67	 
	 

	 	 	9.2	 	 	Acceleration; Remedies
	 	 	70	 
	 

	 	 	9.3	 	 	Allocation of Payments After Event of Default
	 	 	71	 
	SECTION 10. AGENCY PROVISIONS	 	 	72	 

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	 	 	10.1	 	 	Appointment
	 	 	72	 
	 

	 	 	10.2	 	 	Delegation of Duties
	 	 	72	 
	 

	 	 	10.3	 	 	Exculpatory Provisions
	 	 	72	 
	 

	 	 	10.4	 	 	Reliance on Communications
	 	 	73	 
	 

	 	 	10.5	 	 	Notice of Default
	 	 	73	 
	 

	 	 	10.6	 	 	Non-Reliance on Agent and Other Lenders
	 	 	73	 
	 

	 	 	10.7	 	 	Indemnification
	 	 	74	 
	 

	 	 	10.8	 	 	Agent in Its Individual Capacity
	 	 	74	 
	 

	 	 	10.9	 	 	Successor Agent
	 	 	74	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 11. MISCELLANEOUS	 	 	75	 
	 

	 	 	11.1	 	 	Notices
	 	 	75	 
	 

	 	 	11.2	 	 	Right of Set-Off
	 	 	75	 
	 

	 	 	11.3	 	 	Benefit of Agreement
	 	 	76	 
	 

	 	 	11.4	 	 	No Waiver; Remedies Cumulative
	 	 	78	 
	 

	 	 	11.5	 	 	Payment of Expenses, etc.
	 	 	78	 
	 

	 	 	11.6	 	 	Amendments, Waivers and Consents
	 	 	79	 
	 

	 	 	11.7	 	 	Counterparts/Telecopy
	 	 	80	 
	 

	 	 	11.8	 	 	Headings
	 	 	80	 
	 

	 	 	11.9	 	 	Defaulting Lender
	 	 	80	 
	 

	 	 	11.10	 	 	Survival of Indemnification and Representations and Warranties
	 	 	81	 
	 

	 	 	11.11	 	 	Governing Law; Venue
	 	 	81	 
	 

	 	 	11.12	 	 	Waiver of Jury Trial; Waiver of Consequential Damages
	 	 	81	 
	 

	 	 	11.13	 	 	Severability
	 	 	82	 
	 

	 	 	11.14	 	 	Further Assurances
	 	 	82	 
	 

	 	 	11.15	 	 	Entirety
	 	 	82	 
	 

	 	 	11.16	 	 	Binding Effect; Continuing Agreement
	 	 	82	 
	 

	 	 	11.17	 	 	Confidentiality; USA PATRIOT Act
	 	 	82	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 12. GUARANTY	 	 	83	 
	 

	 	 	12.1	 	 	The Guaranty
	 	 	83	 
	 

	 	 	12.2	 	 	Obligations Unconditional
	 	 	83	 
	 

	 	 	12.3	 	 	Reinstatement
	 	 	84	 
	 

	 	 	12.4	 	 	Certain Additional Waivers
	 	 	85	 
	 

	 	 	12.5	 	 	Remedies
	 	 	85	 
	 

	 	 	12.6	 	 	Reserved
	 	 	85	 
	 

	 	 	12.7	 	 	Guarantee of Payment; Continuing Guarantee
	 	 	85	 

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	SCHEDULES
	 	 
	 
	 	 
	Schedule 1.1

	 	Commitment Percentages
	Schedule 6.13

	 	Subsidiaries
	Schedule 8.5

	 	Affiliate Transactions
	Schedule 11.1

	 	Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit 2.3

	 	Form of Notice of Borrowing
	Exhibit 2.5

	 	Form of Notice of Continuation/Conversion
	Exhibit 2.9(a)

	 	Form of Revolving Note
	Exhibit 2.9(b)

	 	Form of Term Loan Note
	Exhibit 2.9(c)

	 	Form of Swingline Loan Note
	Exhibit 5.1

	 	Form of Account Designation Letter
	Exhibit 7.1(c)

	 	Form of Officer’s Certificate
	Exhibit 11.3(b)

	 	Form of Assignment Agreement

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CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Credit Agreement”), dated as of May 24, 2007, is entered
into among SPECTRA ENERGY PARTNERS OLP, LP, a Delaware limited partnership (the
“Borrower”), SPECTRA ENERGY PARTNERS, LP, a Delaware limited partnership (the
“Parent”), the Lenders (as defined herein) and WACHOVIA BANK, NATIONAL ASSOCIATION, as
administrative agent for the Lenders (in such capacity, the “Agent”).

RECITALS

     WHEREAS, the Borrower has requested that the Lenders make available to it a credit facility in
the aggregate initial amount of $500 million for the purposes set forth herein; and

     WHEREAS, the Lenders have agreed to provide the requested credit facility to the Borrower on
the terms, and subject to the conditions, set forth herein.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1.

DEFINITIONS AND ACCOUNTING TERMS

     1.1 Definitions.

     As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms herein shall include in the singular number the plural
and in the plural the singular:

     “Account Control Agreement” means those certain Account Control Agreements,
dated as of the Effective Date, among the Borrower (as Debtor), each Intermediary (as
Intermediary) and the Agent (as Bank).

     “Account Designation Letter” means the Notice of Account Designation Letter
dated the Effective Date from the Borrower to the Agent in substantially the form attached
hereto as Exhibit 5.1.

     “Acquisition” by any Person, means the acquisition by such Person, in a single
transaction or in a series of related transactions, of property or assets (other than
capital expenditures or acquisitions of inventory or supplies in the ordinary course of
business) of, or of a business unit or division of, another Person or at least a majority of
the securities having ordinary voting power for the election of directors, managing general
partners or the equivalent of another Person, in each case whether or not involving a merger
or consolidation with such other Person and whether for cash, property, services, assumption
of Indebtedness, securities or otherwise.

     “Adjusted Base Rate” means the Base Rate plus the Applicable Margin for Base
Rate Loans.

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     “Adjusted Eurodollar Rate” means the Eurodollar Rate plus the Applicable Margin
for Eurodollar Loans.

     “Adjusted LIBOR Market Index Rate” means the LIBOR Market Index Rate plus the
Applicable Margin for Eurodollar Loans.

     “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by or under direct or indirect common control with such
Person. A Person shall be deemed to control a corporation if such Person possesses,
directly or indirectly, the power to direct or cause direction of the management and
policies of such corporation, whether through the ownership of voting securities, by
contract or otherwise.

     “Agency Services Address” means Wachovia Bank, National Association, as Agent,
201 South College Street, CP-8, Charlotte, North Carolina 28288-0680, or such other address
as may be identified by written notice from the Agent to the Borrower and the Lenders.

     “Agent” means Wachovia Bank, National Association and any successors and
assigns in such capacity.

     “Applicable Margin” means, at any time:

     (a) with respect to Term Loans, (i) for Eurodollar Loans, 0.10% and (ii) for Base Rate
Loans, 0.00%.

     (b) with respect to Loans (other than Term Loans) and applicable fees, if neither the
Parent nor the Borrower has a Debt Rating from a Designated Rating Agency, the rate per
annum set forth below based on the Consolidated Leverage Ratio:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable	 	Applicable Margin for	 	 	 	 	 	Applicable
	Pricing	 	Consolidated	 	Margin for	 	Eurodollar Loans and	 	Utilization	 	Base Rate
	Level	 	Leverage Ratio	 	Facility Fees	 	Swingline Loans	 	Fee Rate	 	Loans
	I

	 	< 3.00 to 1.0
	 	 	0.100	%	 	 	0.350	%	 	 	0.100	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II

	 	3 3.00 to 1.0 but
< 3.75 to 1.0
	 	 	0.125	%	 	 	0.425	%	 	 	0.100	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III

	 	3 3.75 to 1.0 but
< 4.50 to 1.0
	 	 	0.150	%	 	 	0.500	%	 	 	0.100	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV

	 	3
4.50 to 1.0
	 	 	0.175	%	 	 	0.575	%	 	 	0.100	%	 	 	0.00	%

     Any increase or decrease in the Applicable Margin resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day immediately
following the date that the officer’s certificate is required to be delivered pursuant to
Section 7.1(d) evidencing calculation of the Consolidated Leverage Ratio;

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     provided, however, that if such certificate is not delivered when due
in accordance with such Section 7.1(d), then Pricing Level IV shall apply as of the first
Business Day after the date on which such certificate was required to have been delivered
and shall continue to apply until the first Business Day immediately following the date a
certificate is delivered in accordance with Section 7.1(d), whereupon the Applicable Margin
shall be adjusted based upon the calculation of the Consolidated Leverage Ratio contained in
such certificate.

     In the event that any financial statement or certificate required to be delivered
pursuant to Section 7.1(d) is shown to be inaccurate (regardless of whether the Commitments
are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would
have led to the application of a higher Applicable Margin for any period than the Applicable
Margin applied for such period, then (i) the Borrower shall immediately deliver to the Agent
a correct certificate for such period, (ii) the Applicable Margin shall be redetermined for
such period based on the correct pricing level applicable for such period, and (iii) the
Borrower shall immediately pay to the Agent the accrued additional interest owing as a
result of such increased Applicable Margin for such period. In the event any such
inaccuracy, if corrected, would have led to the application of a lower Applicable Margin for
any period than the Applicable Margin applied for such period, then (i) Borrower may deliver
to the Agent a correct certificate for such period, (ii) the Applicable Margin shall be
redetermined for such period based on the appropriate pricing level for such period, and
(iii) Borrower shall receive a credit for any interest actually paid for such period in
excess of the amount so redetermined to be applied against future interest payments as and
when they become due, but in no event shall any Lender be required to refund any such amount
to Borrower.

     The Applicable Margin in effect from the Effective Date through the first Business Day
immediately following the date a certificate is required to be delivered pursuant to Section
7.1(d) for the fiscal quarter ending September 30, 2007 shall be determined based upon the
calculation of the Consolidated Leverage Ratio contained in the certificate to be delivered
pursuant to Section 5.1(k), based upon Parent’s pro forma financial statements as of March
31, 2007 delivered pursuant to Section 5.1(f) hereof, after giving effect to the Initial
Asset Acquisition, the IPO and the initial Loans hereunder.

     (c) with respect to Loans (other than Term Loans) and applicable fees, if the Parent or
the Borrower has at least one Debt Rating from a Designated Rating Agency, the rate per
annum set forth in the table below opposite such Debt Rating of the Parent or the Borrower:

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	 	 	Applicable	 	Applicable Margin for	 	 	 	 
	Parent’s orBorrower’s	 	Margin for	 	Eurodollar Loans and	 	Utilization	 	Applicable Margin
	Debt Rating	 	Facility Fees	 	Swingline Loans	 	Fee Rate	 	for Base Rate Loans
	> A- / A3 / A-
	 	 	0.060	%	 	 	0.140	%	 	 	0.050	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	A- / A3 / A-
	 	 	0.060	%	 	 	0.190	%	 	 	0.050	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BBB+ / Baa1 / BBB+
	 	 	0.070	%	 	 	0.230	%	 	 	0.050	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BBB / Baa2 / BBB
	 	 	0.090	%	 	 	0.310	%	 	 	0.050	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BBB- / Baa3 / BBB-
	 	 	0.110	%	 	 	0.440	%	 	 	0.050	%	 	 	0.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	< BBB- / Baa3 /
BBB-
	 	 	0.125	%	 	 	0.575	%	 	 	0.050	%	 	 	0.00	%

     The Applicable Margin shall, in each case, be determined and adjusted on the date on
which there is a change in the Debt Rating and shall be effective until a future change in
the Debt Rating.

     If only one Debt Rating is available, such available Debt Rating will govern. If at
any time there is more than one Debt Rating and such Debt Ratings are different (i) if three
Debt Ratings are available, either (a) the majority Debt Rating will govern, if two Debt
Ratings are the same, or (b) the middle Debt Rating will govern, if all three Debt Ratings
differ, and (ii) if only two Debt Ratings are available, the higher Debt Rating will govern,
unless there is more than one level between the Debt Ratings and then the level one below
the higher Debt Rating (lower pricing) will apply.

     (d) Any adjustment in the Applicable Margin shall be applicable to all existing
Eurodollar Loans, Swingline Loans and Letters of Credit as well as any new Eurodollar Loans
or Swingline Loans made or Letters of Credit issued.

     (e) The Borrower shall promptly deliver to the Agent, at the address set forth on
Schedule 11.1 and at the Agency Services Address, information regarding any change
in the Consolidated Leverage Ratio or the Parent’s or the Borrower’s Debt Rating that would
change the existing Pricing Level pursuant to clause (b) or (c) above.

     “Approved Officer” means the president, a vice president, the treasurer or the
assistant treasurer of the applicable Credit Party or such other authorized representative
of such Credit Party as may be designated by any one of the foregoing.

     “Assignment Agreement” means an Assignment Agreement executed and delivered
pursuant to Section 11.3(b).

     “Available Cash” has the meaning ascribed to such term in the Agreement of
Limited Partnership of the Parent as in effect on the Effective Date, with such amendments
thereto as agreed to by the Required Lenders.

     “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

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     “Base Rate” means, for any day, the rate per annum equal to the greater of (a)
the Federal Funds Rate in effect on such day plus 1/2 of 1% or (b) the Prime Rate in effect on
such day. Any change in the Base Rate due to a change in the Prime Rate or the Federal
Funds Rate shall be effective on the effective date of such change in the Prime Rate or the
Federal Funds Rate, respectively.

     “Base Rate Loan” means a Loan (other than a Swingline Loan) which bears
interest based on the Base Rate.

     “Borrower” means Spectra Energy Partners OLP, LP a Delaware limited
partnership.

     “Business Day” means any day other than a Saturday, a Sunday, a legal holiday
or a day on which banking institutions are authorized or required by law or other
governmental action to close in New York, New York or Charlotte, North Carolina;
provided, that in the case of Eurodollar Loans, such day is also a day on which
dealings between banks are carried on in U.S. dollar deposits in the London interbank
market.

     “Businesses” has the meaning set forth in Section 6.12.

     “Capital Lease” means, as applied to any Person, any lease of any Property
(whether real, personal or mixed) by that Person as lessee that, in accordance with GAAP, is
required to be accounted for as a capital lease on the balance sheet of that Person.

     “Capital Stock” means (a) in the case of a corporation, all classes of capital
stock of such corporation, (b) in the case of a partnership, partnership interests (whether
general or limited), (c) in the case of a limited liability company, membership interests
and (d) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Cash Collateral” means all financial assets and securities entitlements
maintained in or credited to the Cash Collateral Account.

     “Cash Collateral Account” means an account of the Borrower established and
maintained with the Intermediary identified by account number in the certificate to be
delivered pursuant to Section 5.1(k).

     “Cash Equivalents” means, as at any date, (a) securities guaranteed or insured
by the United States or any agency or instrumentality thereof (provided that the full faith
and credit of the United States is pledged in support thereof) having maturities of not more
than twelve months from the date of acquisition, (b) Dollar denominated time deposits and
certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of recognized
standing having capital and surplus in excess of $500,000,000 or (iii) any bank whose
short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or
from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved
Bank”), in each case with maturities of not more than 270 days from the date of
acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved
Bank (or by the parent company thereof) or any variable rate notes

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issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent
thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and
maturing within six months of the date of acquisition, (d) repurchase agreements entered
into by any Person with a bank or trust company (including any of the Lenders) or recognized
securities dealer having capital and surplus in excess of $500,000,000 for direct
obligations issued by or fully guaranteed by the United States in which such Person shall
have a perfected first priority security interest (subject to no other Liens) and having, on
the date of purchase thereof, a fair market value of at least 100% of the amount of the
repurchase obligations and (e) Investments, classified in accordance with GAAP as current
assets, in money market investment programs registered under the Investment Company Act of
1940 which are administered by reputable financial institutions having capital of at least
$500,000,000 or having portfolio assets of at least $5,000,000,000 and the portfolios of
which are limited to Investments of the character described in the foregoing subdivisions
(a) through (d).

     “Change in Law” has the meaning specified in Section 4.4(d).

     “Change of Control” means as of any date, the failure of (a) the Parent to own,
directly or indirectly, 100% of the equity of the Borrower or (b) Spectra Energy Corp to
own, directly or indirectly, a majority of the voting equity of the general partner of the
Parent.

     “Closing Date” means the date hereof.

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

     “Co-lead Arrangers” means Wachovia Capital Markets, LLC and CitiGroup Global
Markets Inc.

     “Collateral Documents” means (i) the Account Control Agreement and (ii) each
other document executed and delivered in connection with the granting, attachment and
perfection of the Agent’s security interest in the Cash Collateral, including, without
limitation, Uniform Commercial Code financing statements.

     “Commercial Operation Date” means the date on which a Qualified Project is
substantially complete and commercially operable.

     “Commitment” means, as to each Lender, the commitment of such Lender with
respect to the Revolving Committed Amount and the commitment of such Lender with respect to
the Term Loan Committed Amount and “Commitments” means, collectively, all such
commitments of the Lenders.

     “Commitment Percentage” means, for each Lender, the percentage identified as
its Commitment Percentage opposite such Lender’s name on Schedule 1.1, as such
percentage may be modified by assignment or by an increase in Commitments in accordance with
Section 2.10.

     “Conflicts Committee” has the meaning ascribed thereto in the Agreement of
Limited Partnership of the Parent, as amended or restated from time to time.

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     “Consolidated EBITDA” means, for any period, an amount equal to the sum of (a)
consolidated net income of the Parent plus (b) to the extent deducted in determining
consolidated net income, (i) interest expense, (ii) income tax expense, and (iii)
depreciation and amortization expense, minus (c) equity in earnings from unconsolidated
subsidiaries of the Parent, plus (d) the amount of cash dividends actually received during
such period by the Parent on a consolidated basis from unconsolidated subsidiaries of the
Parent or other Persons. Furthermore, (x) for purposes of the foregoing clauses (a) and (b),
Parent’s consolidated net income and consolidated expenses shall be adjusted with respect to
net income and expenses of non-wholly-owned consolidated subsidiaries, to the extent not
already excluded from Consolidated Net Income, to reflect Parent’s pro rata ownership
interest therein, and (y) the calculation of Consolidated EBITDA shall exclude amounts
categorized as other income or other expense to the extent not already excluded from
Consolidated Net Income. Consolidated EBITDA will be calculated in accordance with Section
7.10(b)(i), (ii) and (iii) to the extent applicable.

     “Consolidated Indebtedness” means, without duplication, all Indebtedness of the
Parent and its Subsidiaries on a consolidated basis, excluding the face amount of undrawn
Letters of Credit not supporting Indebtedness, Hybrid Securities and the Term Loans.

     “Consolidated Interest Coverage Ratio” means, as of the last day of each fiscal
quarter of the Parent, the ratio of (a) Consolidated EBITDA for the period of four
consecutive fiscal quarters ending on such day to (b) Consolidated Interest Expense for the
period of four consecutive fiscal quarters ending on such day.

     “Consolidated Interest Expense” means interest expense as would appear on a
consolidated statement of income of the Parent and its Subsidiaries prepared in accordance
with GAAP; excluding the interest expense of each non-wholly owned Subsidiary in an amount
equal to the aggregate ownership percentage of such Subsidiary’s equity interests by owners
other than the Parent or its wholly-owned Subsidiaries to the extent not already excluded
from Consolidated Interest Expense, to reflect Parent’s pro rata ownership interest therein,
any changes in the fair market value of interest rate Swap Contracts, determined on a
consolidated basis for such period, and any interest expense related to the Term Loans.

     “Consolidated Leverage Ratio” means, as of the last day of each fiscal quarter
of the Parent, the ratio of (a) Consolidated Indebtedness on such day to (b) Consolidated
EBITDA for the period of four consecutive fiscal quarters ending on such day.

     “Consolidated Net Income” means, for any period, the net income of the Parent
and its Subsidiaries for such period determined on a consolidated basis in accordance with
GAAP; provided, that Consolidated Net Income shall not include (i) extraordinary
gains or extraordinary losses, (ii) net gains and losses in respect of disposition of assets
other than in the ordinary course of business, (iii) gains or losses attributable to
write-ups or write-downs of assets, including mark-to-market gains or losses with respect to
Swap Contracts permitted under Section 8.06(c), and (iv) the cumulative effect of a change
in accounting principles, all as reported in the Parent’s consolidated statement(s) of
income for the relevant period(s) prepared in accordance with GAAP.

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     “Consolidated Net Tangible Assets” means, at any date of determination, the
total amount of consolidated assets of the Parent and its Subsidiaries after deducting
therefrom the value (net of any applicable reserves) of all goodwill, trade names,
trademarks, patents and other like intangible assets, all as set forth, or on a pro forma
basis would be set forth, on the consolidated balance sheet of the Parent and its
Subsidiaries for the most recently completed fiscal quarter, in accordance with GAAP.

     “Credit Documents” means this Credit Agreement, the Notes, the LOC Documents,
the Collateral Documents, any Notice of Borrowing, any Notice of Continuation/Conversion and
all other related agreements and documents issued or delivered hereunder or thereunder or
pursuant hereto or thereto.

     “Credit Exposure” means, as applied to each Lender (a) at any time prior to the
termination of the Commitments, the sum of (i) Commitment Percentage of such Lender
multiplied by the Revolving Committed Amount plus (ii) the Commitment Percentage of such
Lender multiplied by the principal balance of the outstanding Term Loans and (b) at any time
after the termination of the Commitments, the sum of (i) the principal balance of the
outstanding Loans of such Lender plus (ii) such Lender’s Participation Interest in the face
amount of outstanding Letters of Credit and Swingline Loans.

     “Credit Facility Swap Contract” means any interest rate Swap Contract entered
into by a Credit Party with a Lender or an Affiliate of a Lender with respect to the
Obligations.

     “Credit Parties” means the Borrower and the Parent.

     “Debt Rating” means, the long-term senior unsecured, non-credit enhanced debt
rating of the Parent by the Designated Rating Agencies.

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

     “Defaulting Lender” means, at any time, any Lender that, at such time (a) has
failed to make a Loan required pursuant to the term of this Credit Agreement, (b) has failed
to pay to the Agent or any Lender an amount owed by such Lender pursuant to the terms of
this Credit Agreement or (c) has been deemed insolvent by a court of competent jurisdiction
or has become subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or
similar official.

     “Designated Rating Agencies” shall mean any of S&P, Moody’s and Fitch and
“Designated Rating Agency” shall mean any one of the foregoing.

     “Disposition” or “Dispose” means the sale, transfer, license, lease or
other disposition (including any Sale and Leaseback Transaction) of any Property by a Credit
Party (including the equity interests of any Subsidiary), including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or
any rights and claims associated therewith.

     “Dollars” and “$” means dollars in lawful currency of the United States
of America.

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     “East Tennessee” has the meaning specified in Section 8.6(f).

     “Effective Date” means the date on or prior to August ___, 2007 on which the
conditions set forth in Section 5.1 shall have been fulfilled (or waived in the sole
discretion of the Lenders).

     “Eligible Assignee” means (a) any Lender approved by the Borrower, the Agent
and the Issuing Lenders, (b) any existing Lender or an Affiliate of an existing Lender or
(c) any other Person approved by the Borrower, the Issuing Lenders and the Agent (in each
case, which approval by the Borrower, the Issuing Lenders and the Agent shall not be
unreasonably withheld or delayed); provided, that (A) the Borrower’s consent is not
required during the existence and continuation of an Event of Default and (B) neither the
Borrower nor an Affiliate of the Borrower shall qualify as an Eligible Assignee.

     “Environmental Laws” means, to the extent relating to exposure to hazardous or
toxic substances or materials, any applicable and legally enforceable requirement of any
Governmental Authority pertaining to (a) the protection of human health, safety, and the
indoor or outdoor environment, (b) the conservation, management, or use of natural resources
and wildlife, (c) the protection or use of surface water and groundwater or (d) the
management, manufacture, possession, presence, use, generation, transportation, treatment,
storage, disposal, release, threatened release, abatement, removal, remediation or handling
of, or exposure to, any hazardous or toxic substance or material or (e) pollution (including
any release to land surface water and groundwater) and includes, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by
the Superfund Amendments and Reauthorization Act of 1986, 42 USC 9601 et seq., Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous
and Solid Waste Amendment of 1984, 42 USC 6901 et seq., Federal Water Pollution Control Act,
as amended by the Clean Water Act of 1977, 33 USC 1251 et seq., Clean Air Act, as amended,
42 USC 7401 et seq., Toxic Substances Control Act of 1976, 15 USC 2601 et seq., Hazardous
Materials Transportation Law, 49 USC App. 1501 et seq., Occupational Safety and Health Act
of 1970, as amended, 29 USC 651 et seq., Oil Pollution Act of 1990, 33 USC 2701 et seq.,
Emergency Planning and Community Right-to-Know Act of 1986, 42 USC 11001 et seq., National
Environmental Policy Act of 1969, 42 USC 4321 et seq., Safe Drinking Water Act of 1974, as
amended, 42 USC 300(f) et seq., any analogous implementing or successor law, and any
amendment, rule, regulation, order, or directive issued thereunder.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended,
and any successor statute thereto, as interpreted by the rules and regulations thereunder,
all as the same may be in effect from time to time. References to sections of ERISA shall
be construed also to refer to any successor sections.

     “ERISA Affiliate” means an entity, whether or not incorporated, which is under
common control with the Parent or any of its Subsidiaries within the meaning of Section
4001(a)(14) of ERISA, or is a member of a group which includes the Parent or any of its
Subsidiaries and which is treated as a single employer under Sections 414(b), (c), (m), or
(o) of the Code.

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     “Eurodollar Loan” means a Loan bearing interest at the Adjusted Eurodollar
Rate.

     “Eurodollar Rate” means with respect to any Eurodollar Loan, for the Interest
Period applicable thereto, a rate per annum equal to the London Interbank Offered Rate.

     “Eurodollar Reserve Percentage” means, for any day, that percentage (expressed
as a decimal) which is in effect from time to time under Regulation D as the maximum reserve
requirement (including, without limitation, any basic, supplemental, emergency, special, or
marginal reserves) applicable with respect to Eurocurrency liabilities, as that term is
defined in Regulation D (or against any other category of liabilities that includes deposits
by reference to which the interest rate of Eurodollar Loans is determined).

     “Event of Default” has the meaning specified in Section 9.1.

     “Excluded Taxes” means, with respect to the Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the Credit Parties
hereunder (a) taxes measured by or imposed upon the net income of any Lender or its
applicable lending office, the Agent, or other recipient (as the case may be), and all
franchise taxes, taxes on doing business or taxes on the capital or net worth of any Lender
or its applicable lending office, the Agent or other recipient (as the case may be), or any
other similar taxes regardless of the name, in each case imposed by the jurisdiction (or any
political subdivision thereof) under the laws of which such Lender, the Agent, or other
recipient (as the case may be) is organized or in which such Lender’s applicable lending
office is located, or in which such Lender’s, the Agent’s, or other recipient’s principal
executive office is located, or by reason of any nexus between the jurisdiction imposing
such tax and such Lender, applicable lending office, the Agent or other recipient (as the
case may be), other than a nexus arising solely from such Lender, the Agent or other
recipient having executed, delivered or performed its obligations, or received payment under
or enforced, this Credit Agreement or any Notes, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the
Borrower is located, and (c) in the case of a Foreign Lender (other than an assignee
pursuant to Section 4.5), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Credit Agreement (or
designates a new lending office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with Section 4.4(c) or (d),
except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new lending office (or assignment), to receive additional amounts
from any Credit Party with respect to such withholding tax pursuant to Section 4.4(a).

     “Extension of Credit” means, as to any Lender, the making of a Loan by such
Lender (or a participation therein by a Lender) or the issuance of, or participation in, a
Letter of Credit by such Lender.

     “Facility Fee” has the meaning specified in Section 3.4(a).

     “Federal Funds Rate” means for any day the rate per annum (rounded upward to
the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds

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brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided, that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the average rate
quoted to the Agent on such day on such transactions as determined by the Agent.

     “Fee Letter” means that certain letter agreement, dated as of April 4, 2007,
among the Agent, Wachovia Capital Markets, LLC and the Borrower, as amended, modified,
supplemented or replaced from time to time.

     “Fitch” means Fitch, Inc.

     “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is resident for tax purposes. For
purposes of this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

     “GAAP” means generally accepted accounting principles in the United States
applied on a consistent basis and subject to Section 1.3.

     “Government Acts” has the meaning specified in Section 2.2(k).

     “Governmental Authority” means any Federal, state, local or foreign court,
monetary authority or governmental agency, authority, instrumentality or regulatory body.

     “Hybrid Securities” means any trust preferred securities, or deferrable
interest subordinated debt with a maturity of at least 20 years, which provides for the
optional or mandatory deferral of interest or distributions, issued by the Parent or the
Borrower, or any business trusts, limited liability companies, limited partnerships or
similar entities (i) substantially all of the common equity, general partner or similar
interests of which are owned (either directly or indirectly through one or more wholly owned
Subsidiaries) at all times by the Parent or the Borrower or any of its Subsidiaries, (ii)
that have been formed for the purpose of issuing hybrid securities or deferrable interest
subordinated debt, and (iii) substantially all the assets of which consist of (A)
subordinated debt of the Parent, the Borrower or a Subsidiary of the Parent, and (B)
payments made from time to time on the subordinated debt.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services purchased, (c) all obligations of such Person created or
arising under any conditional sale or other title retention agreement with respect to the
property acquired, (d) all obligations of such Person under lease obligations which shall
have been, or should be, in accordance with GAAP, recorded as capital leases in respect of
which such Person is liable as lessee, (e) the unreimbursed amount of all drafts drawn under
any letters of credit issued for the account of such Person, and the face amount of all
letters of credit issued to support Indebtedness available to be drawn (other than letter of
credit obligations relating to indebtedness included in Indebtedness pursuant to another
clause of this definition), (f) obligations of others secured by a Lien on property or
assets of such Person,

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whether or not assumed (but in any event not exceeding the fair market value of the
property or asset), (g) all guarantees of Indebtedness referred to in clauses (a) through
(f) above, (h) all amounts payable by such Person in connection with mandatory redemptions
or repurchases of preferred stock, (i) any obligations of such Person (in the nature of
principal or interest) in respect of acceptances or similar obligations issued or created
for the account of such Person, (j) all Off Balance Sheet Indebtedness of such Person and
(k) obligations (contingent or otherwise) existing or arising under any interest rate Swap
Contract, to the extent such obligations are classified as “indebtedness” for purposes of
GAAP. Furthermore, for purposes of the foregoing clauses (a) through (k), Indebtedness of
Parent shall be adjusted with respect to Indebtedness of non-wholly-owned consolidated
subsidiaries of Parent with no recourse to Parent, Borrower or any wholly-owned Subsidiary
thereof, to the extent not already excluded from Indebtedness, to reflect Parent’s pro rata
ownership interest therein.

     “Initial Asset Acquisition” has the meaning set forth in Section 5.1(d).

     “Interest Payment Date” means (a) as to Base Rate Loans and Swingline Loans,
the first day of each calendar quarter and the Maturity Date and (b) as to Eurodollar Loans,
the last day of each applicable Interest Period and the Maturity Date and, in addition,
where the applicable Interest Period for a Eurodollar Loan is greater than three months,
then also on the last day of each three-month period during such Interest Period. If an
Interest Payment Date falls on a date which is not a Business Day, such Interest Payment
Date shall be deemed to be the next succeeding Business Day, except that in the case of
Eurodollar Loans where the next succeeding Business Day falls in the next succeeding
calendar month, then on the next preceding Business Day.

     “Interest Period” means, with respect to Eurodollar Loans, a period of one,
two, three or six months’ duration, as the Borrower may elect, commencing, in each case, on
the date of the borrowing (including continuations and conversions of Eurodollar Loans);
provided, however, (a) if any Interest Period would end on a day which is not a Business
Day, such Interest Period shall be extended to the next succeeding Business Day (except that
where the next succeeding Business Day falls in the next succeeding calendar month, then on
the next preceding Business Day), (b) no Interest Period shall extend beyond the Maturity
Date and (c) where an Interest Period begins on a day for which there is no numerically
corresponding day in the calendar month in which the Interest Period is to end, such
Interest Period shall end on the last Business Day of such calendar month.

     “Intermediary” means either SunTrust Capital Markets, Inc. or KeyBanc Capital
Markets Inc., as securities intermediary under the Account Control Agreements, or any
successor thereto.

     “Investment” means, as to any Person, any direct or indirect acquisition or
investment by such Person, whether by means of (a) the purchase or other acquisition of the
Capital Stock of another Person, (b) an Acquisition or (c) a loan, advance or capital
contribution to, guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or equity participation or interest in, another Person, including any partnership
or joint venture interest in such other Person and any arrangement pursuant to which the
investor guarantees Indebtedness of such other Person.

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     “Investment Grade Rating” means BBB- or better from S&P or Fitch or Baa3 or
better from Moody’s.

     “Investment Grade Rating Date” means the date on which the Parent or the
Borrower first achieves an Investment Grade Rating.

     “Issuing Lender” means Wachovia Bank, National Association or any other Lender
as requested by the Borrower and agreed to by such Lender.

     “Issuing Lender Fees” has the meaning set forth in Section 3.4(b)(ii).

     “Joint Venture” means any Person, other than an individual or a Subsidiary of
the Parent, in which the Parent or a Subsidiary of the Parent holds or acquires an ownership
interest (whether by way of capital stock, partnership or limited liability company
interest, or other evidence of ownership).

     “Letter of Credit” means a Letter of Credit issued for the account of the
Borrower or one of its Subsidiaries by an Issuing Lender pursuant to Section 2.2, as such
Letter of Credit may be amended, modified, extended, renewed or replaced.

     “Letter of Credit Fees” shall have the meaning assigned to such term in Section
3.4(b)(i).

     “Lender” means any Person identified as a Lender on the signature pages hereto
and any Eligible Assignee which may become a Lender by way of assignment in accordance with
the terms hereof, together with their successors or permitted assigns.

     “LIBOR Market Index Rate” means, for any day, with respect to any Swingline
Loan, the rate of interest per annum appearing on Telerate Page 3750 (or any successor page)
as the London interbank offered rate for deposits in Dollars at approximately 11:00 A.M.
(London time) for such day; provided, if such day is not a Business Day, the
immediately preceding Business Day, with a one-month maturity; provided, however, if
more than one rate is specified on Telerate Page 3750, the applicable rate shall be the
arithmetic mean of all such rates. If, for any reason, such rate is not available, the term
“London Interbank Offered Rate” shall mean, with respect to any Eurodollar Loan for the
Interest Period applicable thereto, the rate of interest per annum appearing on such other
service as may be nominated by the British Bankers’ Association as the London interbank
offered rate for deposits in Dollars at approximately 11:00 A.M. (London time) for such day;
provided, if such day is not a Business Day, the immediately preceding Business Day,
with a one-month maturity; provided, however, if more than one rate is specified,
the applicable rate shall be the arithmetic mean of all such rates.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, security interest, encumbrance, lien (statutory or otherwise), preference,
priority or charge of any kind (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any financing or similar statement or
notice filed under the Uniform Commercial Code as adopted and in effect in the relevant
jurisdiction or other similar recording or notice statute, and any lease in the nature
thereof).

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     “Loans” means the Revolving Loans, the Swingline Loans and the Term Loans.

     “LOC Documents” means, with respect to any Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any
application therefor, and any agreements, instruments, guarantees or other documents
(whether general in application or applicable only to such Letter of Credit) governing or
providing for (a) the rights and obligations of the parties concerned or at risk or (b) any
collateral security for such obligations.

     “LOC Obligations” means, at any time, the sum of (a) the maximum amount which
is then available to be drawn under Letters of Credit then outstanding, assuming compliance
with all requirements for drawings referred to in such Letters of Credit plus (b) the
aggregate amount of all drawings under Letters of Credit honored by an Issuing Lender but
not theretofore reimbursed.

     “London Interbank Offered Rate” means, with respect to any Eurodollar Loan for
the Interest Period applicable thereto, the rate of interest per annum appearing on Telerate
Page 3750 (or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period; provided,
however, if more than one rate is specified on Telerate Page 3750, the applicable rate shall
be the arithmetic mean of all such rates. If, for any reason, such rate is not available,
the term “London Interbank Offered Rate” shall mean, with respect to any Eurodollar Loan for
the Interest Period applicable thereto, the rate of interest per annum appearing on such
other service as may be nominated by the British Bankers’ Association as the London
interbank offered rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
Business Days prior to the first day of such Interest Period for a term comparable to such
Interest Period; provided, however, if more than one rate is specified, the
applicable rate shall be the arithmetic mean of all such rates.

     “Mandatory Borrowing” has the meaning specified in Section 2.2(e).

     “Material Adverse Effect” means a material adverse effect on the business,
financial positions or results of operations of the Parent and its Subsidiaries taken as a
whole.

     “Maturity Date” means the fifth anniversary of the Effective Date, as extended
pursuant to Section 2.10(c).

     “Moody’s” means Moody’s Investors Service, Inc., or any successor or assignee
of the business of such company in the business of rating securities.

     “Multiemployer Plan” means a Plan covered by Title IV of ERISA which is a
multiemployer plan as defined in Section 3(37) or 4001(a)(3) of ERISA.

     “Multiple Employer Plan” means a Plan covered by Title IV of ERISA, other than
a Multiemployer Plan, which the Parent or any ERISA Affiliate and at least one employer
other than the Parent or any ERISA Affiliate are contributing sponsors.

     “Non-Excluded Taxes” means Taxes other than Excluded Taxes.

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     “Notes” means the Revolving Notes, the Term Loan Notes and the Swingline Loan
Notes, if any.

     “Notice of Borrowing” means a request by the Borrower for a Loan in the form of
Exhibit 2.3.

     “Notice of Continuation/Conversion” means a request by the Borrower for the
continuation or conversion of a Loan in the form of Exhibit 2.5.

     “Obligations” means, without duplication, all of the obligations of the Credit
Parties to the Lenders and the Agent, whenever arising, under this Credit Agreement, the
Notes, the LOC Documents, the Collateral Documents, Credit Facility Swap Contracts, Treasury
Management Agreements or any of the other Credit Documents.

     “Off Balance Sheet Indebtedness” means any obligation of a Person that would be
considered indebtedness for tax purposes but is not set forth on the balance sheet of such
Person, including, but not limited to, (a) any synthetic lease, tax retention operating
lease, off balance sheet loan or similar off-balance sheet financing product of such Person,
(b) the aggregate amount of uncollected accounts receivables of such Person subject at such
time to a sale of receivables (or similar transaction) and (c) obligations of any
partnership or joint venture that is recourse to such Person. Off Balance Sheet
Indebtedness shall not include indemnifications of lenders by the Parent or the Borrower
with respect to obligations of any Joint Venture or Subsidiary with an Investment Grade
Rating in which the Parent, the Borrower or any of their respective Affiliates has an
ownership interest as of the Effective Date.

     “Original Revolving Commitment” means, as to each applicable Lender (including
any Lender that purchases any portion of the Original Revolving Commitment by assignment),
the Dollar commitment of such Lender with respect to the Original Revolving Committed
Amount, as such Original Revolving Commitment may be modified by assignment.

     “Original Revolving Commitment Percentage” means, for each applicable Lender,
the percentage identified as its Original Revolving Commitment Percentage opposite such
Lender’s name on Schedule 1.1 (or on the applicable Assignment Agreement), as such
percentage may be modified by assignment.

     “Original Revolving Committed Amount” means, the dollar amount of the Revolving
Committed Amount as of the Effective Date (without giving effect to any increase in the
Revolving Committed Amount pursuant to Section 2.10).

     “Other Taxes” means all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made
under this Credit Agreement or under any Notes or from the execution, delivery or
enforcement of, or otherwise with respect to, this Credit Agreement or any Notes.

     “Parent” means Spectra Energy Partners, LP, a Delaware limited partnership.

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     “Participation Interest” means the Extension of Credit by a Lender by way of a
purchase or deemed purchase of a participation in Letters of Credit or LOC Obligations as
provided in Section 2.2 or in any Swingline Loans as provided in Section 2.8 or in any Loans
as provided in Section 3.8.

     “Payment Date” has the meaning set forth in Section 2.2(d).

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

     “Permitted Acquisitions” means (a) the Initial Asset Acquisition and (b) any
other Acquisition by any Credit Party, so long as (i) no Default or Event of Default is in
existence or would be created thereby, (ii) the Person or assets being acquired by such
Credit Party are engaged or used (or intended to be used), as applicable, primarily in the
midstream energy business, (iii) such Acquisition has been approved by the Board of
Directors or similar governing body of the target of such Acquisition (if required or
applicable) and (iv) immediately after giving effect to such acquisition, the Parent is in
compliance with Section 7.10 on a pro forma basis.

     “Permitted Cash Collateral” means each of the following instruments and
securities to the extent having maturities (for purposes of this definition, “maturities”
shall mean (i) weighted average life for asset-backed securities, mortgage-backed
securities, commercial mortgage-backed securities and collateralized mortgage obligations,
and the next reset date for auction rate securities and (ii) with respect to mutual funds,
the weighted average maturity of the investments it owns) not greater than 180 days from the
date of acquisition thereof:

     (a) cash,

     (b) investments in money market mutual funds that are registered with the SEC
and subject to Rule 2a-7 of the Investment Company Act of 1940 and have a net asset
value of 1.0,

     (c) U.S. Treasury Notes,

     (d) direct obligations of the United States (including obligations of agencies
and sponsored enterprises of the United States) and other obligations whose
principal and interest is fully guaranteed by the United States,

     (e) money market instruments (including, but not limited to, commercial paper,
banker’s acceptances, time deposits and certificates of deposits) rated A-1 by S&P
or P-1 by Moody’s at the time of purchase,

     (f) obligations of corporations or other business entities (including, bonds,
notes and other structured obligations) rated AAA by S&P, Aaa by Moody’s or AAA by
Fitch at the time of purchase,

     (g) asset-backed securities rated AAA by S&P, Aaa by Moody’s or AAA by Fitch at
the time of purchase,

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     (h) mortgage-backed securities, commercial mortgage-backed securities and
collateralized mortgage obligations rated AAA by S&P, Aaa by Moody’s or AAA by Fitch
at the time of purchase,

     (i) repurchase obligations that are collateralized no less than 102% of market
value (including accrued interest) by obligations of the U.S. government or one of
its sponsored enterprises or agencies,

     (j) municipal obligations issued by any state of the United States of America
or any municipality or other political subdivision of any such state rated AAA by
S&P, Aaa by Moody’s or AAA by Fitch at the time of purchase,

     (k) 7, 28 or 35 day auction rate securities rated AAA by S&P, Aaa by Moody’s or
AAA by Fitch at the time of purchase and

     (l) shares in bond mutual funds that are registered under the Investment
Company Act of 1940 that invest solely in the items set forth in (a)-(k) above and
rated AAA by S&P, Aaa by Moody’s or AAA by Fitch at the time of purchase,

in each case above which is held in the Cash Collateral Account and is subject to
the Account Control Agreement and in which the Agent has, on behalf of the Lenders,
a first priority perfected security interest.

     Notwithstanding the above, at the time of purchase, no one issuer will be more
than $30,000,000 of the value of the Permitted Cash Collateral. This rule excludes
direct obligations of the United States, United States sponsored agencies and
enterprises, money market funds, repurchase agreements and securities that have an
effective maturity no longer than the next business day. United States sponsored
agencies and enterprises are limited to the greater of 40% or $100,000,000 of the
value of the Permitted Cash Collateral at time of purchase, per issuer. For
purposes of calculating the amount of Permitted Cash Collateral on deposit in the
Cash Collateral Account hereunder, Permitted Cash Collateral of an issuer that
exceeds the $30,000,000 or the greater of 40% or $100,000,000 thresholds set forth
above shall be excluded from such calculation.

     “Person” means any individual, partnership, joint venture, firm, corporation,
association, trust, limited liability company or other enterprise (whether or not
incorporated), or any government or political subdivision or any agency, department or
instrumentality thereof.

     “Plan” means any employee pension benefit plan (as defined in Section 3(2) of
ERISA) which is covered by ERISA and with respect to which the Parent or any ERISA Affiliate
is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be
deemed to be) an “employer” within the meaning of Section 3(5) of ERISA.

     “Prime Rate” means the per annum rate of interest established from time to time
by the Agent at its principal office in Charlotte, North Carolina as its Prime Rate. Any
change in the interest rate resulting from a change in the Prime Rate shall become effective
as of 12:01 a.m. of the Business Day on which each change in the Prime Rate is announced by
the

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Agent. The Prime Rate is a reference rate used by the Agent in determining interest
rates on certain loans and is not intended to be the lowest rate of interest charged on any
extension of credit to any debtor.

     “Properties” has the meaning set forth in Section 6.12.

     “Qualified Acquisition” means a Permitted Acquisition, the aggregate purchase
price for which, when combined with the aggregate purchase price for all other Permitted
Acquisitions in any rolling 12-month period, is greater than or equal to $25,000,000.

     “Qualified Project” means the construction or expansion of any capital project
of the Borrower or any of its Subsidiaries, the aggregate capital cost of which exceeds
$10,000,000.

     “Qualified Project EBITDA Adjustments” shall mean, with respect to each
Qualified Project:

     (A) prior to the Commercial Operation Date of a Qualified Project (but
including the fiscal quarter in which such Commercial Operation Date occurs), a
percentage (based on the then-current completion percentage of such Qualified
Project) of an amount to be approved by the Agent as the projected Consolidated
EBITDA of the Parent and its Subsidiaries attributable to such Qualified Project for
the first 12-month period following the scheduled Commercial Operation Date of such
Qualified Project (such amount to be determined based on customer contracts relating
to such Qualified Project, the creditworthiness of the other parties to such
contracts, and projected revenues from such contracts, capital costs and expenses,
scheduled Commercial Operation Date, oil and gas reserve and production estimates,
commodity price assumptions and other reasonable factors deemed appropriate by
Agent), which may, at the Parent’s option, be added to actual Consolidated EBITDA
for the Parent and its Subsidiaries for the fiscal quarter in which construction of
such Qualified Project commences and for each fiscal quarter thereafter until the
Commercial Operation Date of such Qualified Project (including the fiscal quarter in
which such Commercial Operation Date occurs, but net of any actual Consolidated
EBITDA of the Parent and its Subsidiaries attributable to such Qualified Project
following such Commercial Operation Date); provided that if the actual
Commercial Operation Date does not occur by the scheduled Commercial Operation Date,
then the foregoing amount shall be reduced, for quarters ending after the scheduled
Commercial Operation Date to (but excluding) the first full quarter after its actual
Commercial Operation Date, by the following percentage amounts depending on the
period of delay (based on the period of actual delay or then-estimated delay,
whichever is longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but not
more than 180 days, 25%, (iii) longer than 180 days but not more than 270 days, 50%,
and (iv) longer than 270 days, 100%; and

     (B) thereafter, actual Consolidated EBITDA of the Parent and its Subsidiaries
attributable to such Qualified Project for each full fiscal quarter after the
Commercial Operation Date, plus the amount approved by Agent pursuant to

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Part (A) above as the projected Consolidated EBITDA of Parent and its
Subsidiaries attributable to such Qualified Project for the fiscal quarters
constituting the balance of the four full fiscal quarter period following such
Commercial Operation Date; provided, in the event the actual Consolidated
EBITDA of the Parent and its Subsidiaries attributable to such Qualified Project for
any full fiscal quarter after the Commercial Operation Date shall materially differ
from the projected Consolidated EBITDA approved by Agent pursuant to Part (A) above
for such fiscal quarter, the projected Consolidated EBITDA of Parent and its
Subsidiaries attributable to such Qualified Project for any remaining fiscal
quarters included in the foregoing calculation shall be redetermined in the same
manner as set forth in clause (A) above, such amount to be approved by the Agent,
which may, at the Parent’s option, be added to actual Consolidated EBITDA for the
Parent and its Subsidiaries for such fiscal quarters.

     Notwithstanding the foregoing:

     (i) no such additions shall be allowed with respect to any Qualified Project unless:

     (a) not later than 30 days prior to the delivery of any certificate required by
the terms and provisions of Section 7.1(c) to the extent Qualified Project EBITDA
Adjustments will be made to Consolidated EBITDA in determining compliance with
Section 7.10, the Borrower shall have delivered to the Agent written pro forma
projections of Consolidated EBITDA of the Parent and its Subsidiaries attributable
to such Qualified Project and

     (b) prior to the date such certificate is required to be delivered, the Agent
shall have approved (such approval not to be unreasonably withheld) such projections
and shall have received such other information and documentation as the Agent may
reasonably request, all in form and substance satisfactory to the Agent, and

     (ii) the aggregate amount of all Qualified Project EBITDA Adjustments during any period
shall be limited to 20% of the total actual Consolidated EBITDA of the Parent and its
Subsidiaries for such period (which total actual Consolidated EBITDA shall be determined
without including any Qualified Project EBITDA Adjustments).

     “Register” has the meaning set forth in Section 11.3(c).

     “Registration Statement” means Parent’s Form S-1 Registration Statement filed
March 30, 2007 with the SEC, as amended through the date hereof.

     “Regulation A, D, T, U, or X” means Regulation A, D, T, U or X, respectively,
of the Board of Governors of the Federal Reserve System as from time to time in effect and
any successor to all or a portion thereof.

     “Reportable Event” means a “reportable event” as defined in Section 4043 of
ERISA with respect to which the notice requirements to the PBGC have not been waived.

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     “Required Collateral Amount” has the meaning specified in Section 7.13(b).

     “Required Lenders” means Lenders whose aggregate Credit Exposure constitutes
more than 50% of the aggregate Credit Exposure of all Lenders at such time;
provided, however, that if any Lender shall be a Defaulting Lender at such time then
there shall be excluded from the determination of Required Lenders the aggregate principal
amount of Credit Exposure of such Lender at such time.

     “Responsible Officer” means the president, chief financial officer, treasurer
or assistant treasurer of the applicable Credit Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to Capital Stock of a Credit Party or any
Subsidiary, or any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Capital Stock or on account of any
return of capital to a Credit Party’s stockholders, partners or members (or the equivalent
Person thereof), or any setting apart of funds or assets for any of the foregoing.

     “Revolving Committed Amount” means an amount equal to (a) FIVE HUNDRED MILLION
Dollars ($500,000,000) as such amount may be reduced in accordance with Section 2.7 or
increased pursuant to Section 2.10, minus (b) the outstanding principal amount of
(i) the initial Term Loans made pursuant to Section 2.1(b) and (ii) any additional term
loans made pursuant to Section 2.11 that provide for an automatic increase in the aggregate
amount of the Revolving Committed Amount upon any prepayment thereof.

     “Revolving Loans” has the meaning set forth in Section 2.1(a).

     “Revolving Notes” means the promissory notes of the Borrower in favor of each
of the Lenders evidencing the Loans provided pursuant to Section 2.1(a), individually or
collectively, as appropriate, as such notes may be amended or modified from time to time and
substantially in the form of Exhibit 2.9(a).

     “S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc.,
or any successor or assignee of the business of such division in the business of rating
securities.

     “Sale and Leaseback Transaction” means, with respect to a Credit Party or any
Subsidiary, any arrangement, directly or indirectly, with any Person whereby a Credit Party
or such Subsidiary shall sell or transfer any assets used or useful in its business, whether
now owned or hereafter acquired, and thereafter rent or lease such assets or other assets
that it intends to use for substantially the same purpose or purposes as the assets being
sold or transferred.

     “Sanctioned Country” means a country subject to a sanctions program identified
on the list maintained by OFAC and available at http://www.treas.gov/offices/
enforcement/ofac/sanctions/index.html, or as otherwise published from time to time.

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     “Sanctioned Person” means (a) a Person named on the list of “Specially
Designated Nationals and Blocked Persons” maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise published from
time to time or (b) (i) an agency of the government of a Sanctioned Country, (ii) an
organization controlled by a Sanctioned Country or (iii) a person resident in a Sanctioned
Country, to the extent subject to a sanctions program administered by OFAC.

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

     “Solvent” means, with respect to any Person as of a particular date, that on
such date (a) such Person is able to pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business, (b) such
Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary
course, (c) such Person is not engaged in a business or a transaction, and is not about to
engage in a business or a transaction, for which such Person’s assets would constitute
unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is to engage, (d) the fair value of the assets
of such Person is greater than the total amount of liabilities, including, without
limitation, contingent liabilities, of such Person and (e) the present fair saleable value
of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured. In
computing the amount of contingent liabilities at any time, it is intended that such
liabilities will be computed as the amount which, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected
to become an actual or matured liability.

     “Subsidiary” means, as to any Person, (a) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to
elect a majority of the directors of such corporation (irrespective of whether or not at the
time, any class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries, (b) any partnership, association, joint venture, limited
liability company or other entity in which such person directly or indirectly through
Subsidiaries has more than 50% equity interest at any time and (c) any other Person that is
controlled by such Person and who for GAAP purposes is required to be consolidated into such
Person’s consolidated financial statements. Unless otherwise provided, as used herein,
“Subsidiary” shall refer to a Subsidiary of the Parent.

     “Swap Contract” means, to the extent entered into on a fair market value basis
at the time of entry, (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap transactions,
cross-currency rate swap transactions, currency options, spot contracts, or any other
similar transactions or any combination of any of the foregoing (including any options to
enter

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into any of the foregoing), whether or not any such transaction is governed by or
subject to any master agreement, and (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association,
Inc., any International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master Agreement.

     “Swingline Committed Amount” means FIFTY MILLION DOLLARS ($50,000,000).

     “Swingline Lender” means Wachovia Bank, National Association or any successor
Swingline Lender.

     “Swingline Loan” or “Swingline Loans” has the meaning set forth in
Section 2.8(a).

     “Swingline Loan Note” means the promissory note of the Borrower in favor of the
Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.8, as such
promissory note may be amended or modified, from time to time and substantially in the form
of Exhibit 2.9(c).

     “Taxes” means all present or future taxes, levies, imposts, duties, charges,
fees, deductions or withholdings, imposed, levied, collected, withheld or assessed by any
Governmental Authority, including any interest, additions to tax or penalties applicable
thereto.

     “Termination Event” means (a) with respect to any Single Employer Plan, the
occurrence of a Reportable Event or the substantial cessation of operations (within the
meaning of Section 4062(e) of ERISA), (b) the withdrawal of the Parent or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a substantial
employer (as such term is defined in Section 4001(a)(2) of ERISA), or the termination of a
Multiple Employer Plan, (c) the distribution of a notice of intent to terminate or the
actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA, (d) the
institution of proceedings to terminate or the actual termination of a Plan by the PBGC
under Section 4042 of ERISA, (e) any event or condition which might reasonably constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan, or (f) the complete or partial withdrawal of the Borrower or any
ERISA Affiliate from a Multiemployer Plan.

     “Term Loans” has the meaning specified in Section 2.1(b), and shall include
additional term loans made pursuant to Section 2.11.

     “Term Loan Committed Amount” means an amount not to exceed TWO HUNDRED FIFTY
MILLION DOLLARS ($250,000,000.00).

     “Term Loan Note” means the promissory notes of the Borrower in favor of each of
the Lenders evidencing the Loans provided pursuant to Section 2.1(b) or additional term
loans pursuant to Section 2.11, individually or collectively, as appropriate, as such notes

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may be amended or modified from time to time and substantially in the form of
Exhibit 2.9(b).

     “Tier 1 Permitted Cash Collateral” means Permitted Cash Collateral with
maturities of not more than 30 days from the date of acquisition with the exception of
auction rate securities which may have a re-set date of 35 days or less.

     “Tier 2 Permitted Cash Collateral” means Permitted Cash Collateral with
maturities more than 30 days from the date of acquisition but not more than 90 days from the
date of acquisition.

     “Tier 3 Permitted Cash Collateral” means Permitted Cash Collateral with
maturities more than 90 days from the date of acquisition but not more than 180 days from
the date of acquisition.

     “Total Committed Amount” means the sum of the Revolving Committed Amount plus
the Term Loan Committed Amount.

     “Treasury Management Agreement” means any agreement governing the provision of
treasury or cash management services, including deposit accounts, funds transfer, automated
clearinghouse, zero balance accounts, returned check concentration, controlled disbursement,
lockbox, account reconciliation and reporting and trade finance services provided by a
Lender or an Affiliate of a Lender.

     “Utilization Fees” has the meaning set forth in Section 3.4(c).

     “Utilized Revolving Loan Commitment” means, for any period from the Effective
Date to the Maturity Date, the amount equal to the daily average sum for such period of the
aggregate principal amount of all Revolving Loans plus Swingline Loans plus LOC Obligations.

     1.2 Computation of Time Periods.

     For purposes of computation of periods of time hereunder, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding.” References in this Credit
Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections,
Schedules or Exhibits of or to this Credit Agreement unless otherwise specifically provided.

     1.3 Accounting Terms.

     Except as otherwise expressly provided herein, all accounting terms used herein shall be
interpreted, and all financial statements and certificates and reports as to financial matters
required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP
applied on a basis consistent with the most recent audited consolidated financial statements
delivered pursuant to Section 7.1(a).

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     1.4 Time.

     All references to time herein shall be references to Eastern Standard Time or Eastern Daylight
time, as the case may be, unless specified otherwise.

SECTION 2.

LOANS

     2.1 Revolving and Term Loan Commitments. 

     (a) Revolving Loans. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make revolving loans to the Borrower in Dollars, at any time and from
time to time, during the period from the Effective Date to the Maturity Date (each a “Revolving
Loan” and collectively the “Revolving Loans”); provided, however, that (a) the
sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of Swingline
Loans outstanding plus the aggregate amount of LOC Obligations outstanding shall not exceed the
Revolving Committed Amount, and (b) with respect to each individual Revolving Lender, such
Revolving Lender’s pro rata share of outstanding Revolving Loans plus such Revolving Lender’s pro
rata share of outstanding LOC Obligations plus its pro rata share of Swingline Loans shall not
exceed such Revolving Lender’s Commitment Percentage of the Revolving Committed Amount. Subject to
the terms of this Credit Agreement, the Borrower may borrow, repay and reborrow Revolving Loans.
Unless earlier terminated pursuant to other provisions of this Credit Agreement, the Commitments
hereunder shall terminate on the Maturity Date.

     (b) Term Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make term loans to the Borrower in Dollars, at any time and from time to time
during the period from the Effective Date to forty (40) days following the Effective Date (each a
“Term Loan” and collectively, the “Term Loans”); provided, however, that (a) the
Borrower may not request more than two (2) draws with respect to the Term Loans, one of which must
be on the Effective Date, (b) the sum of the aggregate amount of Term Loans outstanding shall not
exceed the Term Loan Committed Amount and (c) with respect to each individual Term Loan Lender,
such Term Loan Lender’s pro rata share of outstanding Term Loans shall not exceed such Term Loan
Lender’s Commitment Percentage of the Term Loan Committed Amount. Any amounts remaining under the
Term Loan Committed Amount subsequent to the date forty (40) days after the Effective Date shall no
longer be available and the Lenders shall have no further obligation to fund any additional Term
Loans. Once repaid, Term Loans may not be reborrowed; provided, this Section 2.1 shall not
limit Borrower’s right to request additional term loans pursuant to Section 2.11 hereof.

     2.2 Letters of Credit.

     (a) Issuance; Terms. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which an Issuing Lender may reasonably
require (so long as such terms and conditions do not impose any financial obligation on or require
any Lien (not otherwise contemplated by this Credit Agreement) to be given by the Borrower or
conflict with any obligation of, or detract from any action which may be taken by the Borrower or
its Subsidiaries under this Credit Agreement), the applicable Issuing Lender

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shall from time to time, upon request, issue in Dollars, and the Revolving Lenders shall
participate in, letters of credit (the “Letters of Credit”) for the account of the Borrower
(or, subject to Section 2.2(f), the Parent or any of its Subsidiaries) from the Effective Date
until the Maturity Date, in a form reasonably acceptable to such Issuing Lender; provided,
however, that (i) the sum of the aggregate amount of LOC Obligations outstanding plus Revolving
Loans outstanding plus Swingline Loans outstanding shall not exceed the Revolving Committed Amount
and (ii) with respect to each individual Lender, such Lender’s pro rata share of outstanding
Revolving Loans plus its pro rata share of outstanding LOC Obligations plus its pro rata share of
Swingline Loans shall not exceed such Lender’s Commitment Percentage of the Revolving Committed
Amount. The issuance and expiry date of each Letter of Credit shall be a Business Day. No Letter
of Credit shall have an expiry date extending beyond the earlier of (i) one (1) year after the date
of issuance (which may provide for the automatic renewal thereof as provided therein) and (ii) the
date that is five (5) Business Days before the Maturity Date provided, if the Borrower so
requests, the Issuing Lender may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic renewal provisions (each, an “Auto-Renewal Letter of Credit”);
provided that any such Auto-Renewal Letter of Credit must permit the Issuing Lender to
prevent any such renewal at least once in each twelve-month period (commencing with the date of
issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than
(A) thirty (30) days before the end of such twelve-month period, or (B) such later date to be
agreed upon at the time such Letter of Credit is issued (the “Nonrenewal Notice Date”).
Once an Auto-Renewal Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the Issuing Lender to permit the renewal of such Letter of Credit
at any time prior to the date set forth in clause (ii) of the foregoing sentence; provided
that the expiry date of such Letter of Credit complies with clause (ii) of the foregoing sentence.
Each Letter of Credit shall be either (x) a standby letter of credit issued to support the
obligations (including pension or insurance obligations), contingent or otherwise, of the Borrower,
the Parent or any of its Subsidiaries or (y) a commercial letter of credit in respect of the
purchase of goods or services by the Borrower, the Parent or any of its Subsidiaries in the
ordinary course of business. Each Letter of Credit shall comply with the related LOC Documents.

     (b) Notice and Reports. The request for the issuance of a Letter of Credit shall be
submitted in writing to the applicable Issuing Lender at least three Business Days prior to the
requested date of issuance. Such request shall specify the date such Letter of Credit is to be
issued and describe the terms of such Letter of Credit and shall be accompanied by a completed
application in form and substance satisfactory to such Issuing Lender. Each Issuing Lender will
notify the Agent when a Letter of Credit is issued and the details with respect thereto and shall
provide to the Agent and, upon written request, to the Lenders a detailed report specifying the
Letters of Credit which are then issued and outstanding and any activity with respect thereto which
may have occurred since the date of any prior report, and including therein, among other things,
the account party, the beneficiary, the face amount, and the expiry date as well as any payments or
expirations which may have occurred. Each Issuing Lender will further provide to the Agent,
promptly upon request, copies of the Letters of Credit.

     (c) Participations. Each Lender, upon issuance of a Letter of Credit, shall be deemed
to have purchased without recourse a risk participation from the applicable Issuing Lender in such
Letter of Credit and the obligations arising thereunder and any collateral relating thereto, in
each case in an amount equal to its Commitment Percentage of the obligations under such Letter of
Credit, and shall absolutely, unconditionally and irrevocably assume, as primary obligor and not as

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surety, and be obligated to pay to the applicable Issuing Lender therefor and discharge when
due, its Commitment Percentage of the obligations arising under such Letter of Credit. Without
limiting the scope and nature of each Lender’s participation in any Letter of Credit, to the extent
that the applicable Issuing Lender has not been reimbursed as required hereunder or under any such
Letter of Credit, each such Lender shall pay to the applicable Issuing Lender its Commitment
Percentage of such unreimbursed drawing in same day funds on the day of notification by the
applicable Issuing Lender of an unreimbursed drawing pursuant to the provisions of subsection (d)
hereof. The obligation of each Lender to so reimburse the applicable Issuing Lender shall be
absolute and unconditional and shall not be affected by the occurrence of a Default, an Event of
Default, the Maturity Date or any other occurrence or event. Any such reimbursement shall not
relieve or otherwise impair the obligation of the Borrower to reimburse the applicable Issuing
Lender under any Letter of Credit, together with interest as hereinafter provided.

     (d) Reimbursement. In the event of any request for a drawing or any drawing under any
Letter of Credit, the applicable Issuing Lender will promptly notify the Borrower as to the amount
to be paid as a result of such drawing and the date such payment is to be made by the applicable
Issuing Lender (the “Payment Date”). If the Commitments remain in effect on the Payment
Date, the Borrower shall, unless the Borrower otherwise instructs the Agent by not less than one
Business Day’s prior notice, be deemed to have requested a Revolving Loan at the Base Rate in the
amount of the drawing as provided in subsection (e) hereof, the proceeds of which will be used to
satisfy the reimbursement obligations. The Borrower shall reimburse the applicable Issuing Lender
on the Payment Date either with the proceeds of a Revolving Loan obtained hereunder or otherwise in
same day funds as provided herein or in the LOC Documents. If the Borrower shall fail to reimburse
the applicable Issuing Lender as provided hereinabove, the unreimbursed amount of such drawing
shall bear interest at a per annum rate equal to the Base Rate plus two percent (2%). The
Borrower’s reimbursement obligations hereunder shall be absolute and unconditional under all
circumstances irrespective of (but without waiver of) any rights of set-off, counterclaim or
defense to payment that the applicable account party or the Borrower may claim or have against the
Issuing Lenders, the Agent, the Lenders, the beneficiary of the Letter of Credit drawn upon or any
other Person, including without limitation, any defense based on any failure of the applicable
account party or the Borrower to receive consideration or the legality, validity, regularity or
unenforceability of the Letter of Credit. The applicable Issuing Lender will promptly notify the
Lenders of the amount of any unreimbursed drawing and each Lender shall promptly pay to the Agent
for the account of the applicable Issuing Lender, in Dollars and in immediately available funds,
the amount of such Lender’s Commitment Percentage of such unreimbursed drawing. Such payment shall
be made on the day such notice is received by such Lender from the applicable Issuing Lender if
such notice is received at or before 2:00 p.m., otherwise such payment shall be made at or before
12:00 Noon on the Business Day next succeeding the day such notice is received. If such Lender
does not pay such amount to the applicable Issuing Lender in full upon such request, such Lender
shall, on demand, pay to the Agent for the account of the applicable Issuing Lender interest on the
unpaid amount during the period from the date the Lender received the notice regarding the
unreimbursed drawing until such Lender pays such amount to the applicable Issuing Lender in full at
a rate per annum equal to, if paid within two Business Days of the date of drawing, the Federal
Funds Rate and thereafter at a rate equal to the Base Rate. Each Lender’s obligation to make such
payment to the applicable Issuing Lender, and the right of the applicable Issuing Lender to receive
the same, shall be absolute and unconditional, shall not be affected by any circumstance whatsoever
and without regard to the termination of this Credit Agreement or the Commitments hereunder, the
existence of a Default or Event of Default or the acceleration of the obligations hereunder and
shall

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be made without any offset, abatement, withholding or reduction whatsoever. Simultaneously
with the making of each such payment by a Lender to the applicable Issuing Lender, such Lender
shall, automatically and without any further action on the part of the applicable Issuing Lender or
such Lender, acquire a participation in an amount equal to such payment (excluding the portion of
such payment constituting interest owing to the applicable Issuing Lender) in the related
unreimbursed drawing portion of the LOC Obligation and in the interest thereon and in the related
LOC Documents, and shall have a claim against the Borrower with respect thereto.

     (e) Repayment with Revolving Loans. On any day on which the Borrower shall have
requested, or been deemed to have requested, a Revolving Loan borrowing to reimburse a drawing
under a Letter of Credit, the Agent shall give notice to the Lenders that a Revolving Loan has been
requested or deemed requested in connection with a drawing under a Letter of Credit, in which case
a Revolving Loan borrowing comprised solely of Base Rate Loans (each such borrowing, a
“Mandatory Borrowing”) shall be immediately made from all Lenders (without giving effect to
any termination of the Commitments pursuant to Section 9.2 or otherwise) pro rata based on each
Lender’s respective Commitment Percentage and the proceeds thereof shall be paid directly to the
applicable Issuing Lender for application to the respective LOC Obligations. Each such Lender
hereby irrevocably agrees to make such Revolving Loans immediately upon any such request or deemed
request on account of each such Mandatory Borrowing in the amount and in the manner specified in
the preceding sentence and on the same such date notwithstanding (i) the amount of Mandatory
Borrowing may not comply with the minimum amount for borrowings of Revolving Loans otherwise
required hereunder, (ii) whether any conditions specified in Section 5.2 are then satisfied, (iii)
whether a Default or Event of Default then exists, (iv) failure of any such request or deemed
request for Revolving Loans to be made by the time otherwise required hereunder or (v) any
reduction in the Revolving Committed Amount. In the event that any Mandatory Borrowing cannot be
made on the date otherwise required above, whether because the Commitments have terminated or for
any other reason (including, without limitation, as a result of the commencement of a proceeding
under the Bankruptcy Code with respect to the Borrower), then each such Lender hereby agrees that
it shall forthwith fund (as of the date the Mandatory Borrowing would otherwise have occurred, but
adjusted for any payments received from the Borrower on or after such date and prior to such
purchase) its Participation Interest in the outstanding LOC Obligations; provided, that in the
event any Lender shall fail to fund its Participation Interest on the day it is required to do so,
then the amount of such Lender’s unfunded Participation Interest therein shall bear interest
payable to the applicable Issuing Lender upon demand, at the rate equal to, if paid within two
Business Days of such date, the Federal Funds Rate, and thereafter at a rate equal to the Base
Rate.

     (f) Designation of Subsidiaries as Account Parties. Notwithstanding anything to the
contrary set forth in this Credit Agreement, a Letter of Credit issued hereunder may contain a
statement to the effect that such Letter of Credit is issued for the account of the Parent or any
of its Subsidiaries; provided, that notwithstanding such statement, the Borrower shall be the
actual account party for all purposes of this Credit Agreement for such Letter of Credit and such
statement shall not affect the Borrower’s reimbursement obligations hereunder with respect to such
Letter of Credit.

     (g) Modification and Extension. Except for non-substantive amendments to any Letter
of Credit for the purpose of correcting errors or ambiguities or to allow for administrative
convenience (which amendments each Issuing Bank may make in its discretion with the consent of the
Borrower), the amendment, modification, supplement, extension or renewal of any Letter of

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Credit shall be deemed to be an issuance of such Letter of Credit. If any Letter of Credit
contains a provision pursuant to which it is deemed to be automatically renewed unless notice of
termination is given by the applicable Issuing Lender, such Issuing Lender shall timely give notice
of termination if (i) as of close of business on the seventeenth day prior to the last day upon
which such Issuing Lender’s notice of termination may be given to the beneficiaries of such Letter
of Credit, such Issuing Lender has received a notice of termination from the Borrower or a notice
from the Agent that the conditions to issuance of such Letter of Credit have not been satisfied or
(ii) the renewed Letter of Credit would have a term not permitted by subsection (a) above.

     (h) Uniform Customs and Practices. An Issuing Lender may have the Letters of Credit
be subject to The Uniform Customs and Practice for Documentary Credits (the “UCP”) or the
International Standby Practices 1998 (the “ISP98”), in either case as published as of the
date of issue by the International Chamber of Commerce, in which case the UCP or ISP98, as
applicable, may be incorporated therein and deemed in all respects to be a part thereof.

     (i) Responsibility of Issuing Lenders. It is expressly understood and agreed that the
obligations of each Issuing Lender hereunder to the Lenders are only those expressly set forth in
this Credit Agreement and that each Issuing Lender shall be entitled to assume that the conditions
precedent set forth in Section 5.2 have been satisfied unless it shall have acquired actual
knowledge that any such condition precedent has not been satisfied; provided, however, that nothing
set forth in this Section 2.2 shall be deemed to prejudice the right of any Lender to recover from
an Issuing Lender any amounts made available by such Lender to such Issuing Lender pursuant to
this Section 2.2 in the event that it is determined by a court of competent jurisdiction that the
payment with respect to a Letter of Credit constituted gross negligence or willful misconduct on
the part of such Issuing Lender.

     (j) Conflict with LOC Documents. In the event of any conflict between this Credit
Agreement and any LOC Document, this Credit Agreement shall govern.

     (k) Indemnification of Issuing Lenders.

     (i) In addition to its other obligations under this Credit Agreement, the Borrower
hereby agrees to protect, indemnify, pay and hold the Issuing Lenders harmless from and
against any and all claims, demands, liabilities, damages, losses, costs, charges and
expenses (including reasonable attorneys’ fees) that the Issuing Lenders may incur or be
subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit
or (B) the failure of an Issuing Lender to honor a drawing under a Letter of Credit as a
result of any act or omission, whether rightful or wrongful, of any present or future de
jure or de facto government or Governmental Authority (all such acts or omissions, herein
called “Government Acts”).

     (ii) As between the Borrower and the Issuing Lenders, the Borrower shall assume all
risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof.
The Issuing Lenders shall not be responsible for: (A) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document submitted by any party in connection
with the application for and issuance of any Letter of Credit, even if it should in fact
prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(B) the validity or sufficiency of any instrument transferring or

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assigning or purporting to transfer or assign any Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, that may prove to be invalid
or ineffective for any reason; (C) failure of the beneficiary of a Letter of Credit to
comply fully with conditions required in order to draw upon a Letter of Credit; (D) errors,
omissions, interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (E) errors in
interpretation of technical terms; (F) any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under a Letter of Credit or of the proceeds
thereof; and (G) any consequences arising from causes beyond the control of an Issuing
Lender, including, without limitation, any Government Acts. None of the above shall affect,
impair, or prevent the vesting of an Issuing Lender’s rights or powers hereunder.

     (iii) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by an Issuing Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or omitted in
good faith, shall not put such Issuing Lender under any resulting liability to the Borrower.
It is the intention of the parties that this Credit Agreement shall be construed and
applied to protect and indemnify the Issuing Lenders against any and all risks involved in
the issuance of the Letters of Credit, all of which risks are hereby assumed by the
Borrower, including, without limitation, any and all risks of the acts or omissions, whether
rightful or wrongful, of any present or future Government Acts. An Issuing Lender shall
not, in any way, be liable for any failure by such Issuing Lender or anyone else to pay any
drawing under any Letter of Credit as a result of any Government Acts or any other cause
beyond the control of such Issuing Lender.

     (iv) Nothing in this subsection (k) is intended to limit the reimbursement obligation
of the Borrower contained in this Section 2.2. The obligations of the Borrower under this
subsection (k) shall survive the termination of this Credit Agreement. No act or omission
of any current or prior beneficiary of a Letter of Credit shall in any way affect or impair
the rights of an Issuing Lender to enforce any right, power or benefit under this Credit
Agreement.

     (v) Notwithstanding anything to the contrary contained in this subsection (k) or any of
the Credit Documents, the Borrower shall have no obligation to indemnify an Issuing Lender
in respect of any liability incurred by such Issuing Lender arising solely out of the gross
negligence or willful misconduct of such Issuing Lender, as determined by a court of
competent jurisdiction. Nothing in this Credit Agreement shall relieve an Issuing Lender of
any liability to the Borrower in respect of any action taken by such Issuing Lender which
action constitutes gross negligence or willful misconduct of such Issuing Lender or a
violation of the UCP, the ISP98 or Uniform Commercial Code (as applicable), as determined by
a court of competent jurisdiction.

     2.3 Method of Borrowing for Revolving Loans and Term Loans.

     By no later than 11:00 a.m. (a) on the date of the requested borrowing of Loans (other than
Swingline Loans) that will be Base Rate Loans or (b) three Business Days prior to the date of the
requested borrowing of Loans that will be Eurodollar Loans, the Borrower shall submit a written

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Notice of Borrowing in the form of Exhibit 2.3 to the Agent setting forth (i) the
amount requested, (ii) whether such Loans shall accrue interest at the Adjusted Base Rate or the
Adjusted Eurodollar Rate, (iii) with respect to Loans that will be Eurodollar Loans, the Interest
Period applicable thereto and (iv) certification that the Borrower has complied in all respects
with Section 5.2.

     2.4 Funding of Revolving Loans and Term Loans.

     Upon receipt of a Notice of Borrowing, the Agent shall promptly inform the Lenders as to the
terms thereof. Each such Lender shall make its Commitment Percentage of the requested Revolving
Loans or Term Loans, as applicable, available to the Agent by 2:00 p.m. on the date specified in
the Notice of Borrowing by deposit, in Dollars, of immediately available funds at the Agency
Services Address. The amount of the requested Loans will then be made available to the Borrower by
the Agent by crediting the account of the Borrower on the books of such office of the Agent, to the
extent the amount of such Loans are made available to the Agent.

     No Lender shall be responsible for the failure or delay by any other Lender in its obligation
to make Loans under this Section 2.4; provided, however, that the failure of any Lender to
fulfill its obligations hereunder shall not relieve any other Lender of its obligations hereunder.
Unless the Agent shall have been notified by any Lender prior to the date of any such Loan that
such Lender does not intend to make available to the Agent its portion of the Loans to be made on
such date, the Agent may assume that such Lender has made such amount available to the Agent on the
date of such Loans, and the Agent in reliance upon such assumption, may (in its sole discretion but
without any obligation to do so) make available to the Borrower a corresponding amount. If such
corresponding amount is not in fact made available to the Agent, the Agent shall be able to recover
such corresponding amount from such Lender. If such Lender does not pay such corresponding amount
forthwith upon the Agent’s demand therefor, the Agent will promptly notify the Borrower and the
Borrower shall immediately pay such corresponding amount within two Business Days to the Agent.
The Agent shall also be entitled to recover from the Lender or the Borrower, as the case may be,
interest on such corresponding amount in respect of each day from the date such corresponding
amount was made available by the Agent to the Borrower to the date such corresponding amount is
recovered by the Agent at a per annum rate equal to (a) from the Borrower at the applicable rate
for such Loan pursuant to the Notice of Borrowing and (b) from a Lender at the Federal Funds Rate.

     2.5 Continuations and Conversions.

     The Borrower shall have the option (subject to the limitations set forth below), on any
Business Day, to continue existing Eurodollar Loans for a subsequent Interest Period, to convert
Base Rate Loans into Eurodollar Loans or to convert Eurodollar Loans into Base Rate Loans;
provided, however, that (a) each such continuation or conversion must be requested by the
Borrower pursuant to a written Notice of Continuation/Conversion, in the form of Exhibit
2.5, in compliance with the terms set forth below, (b) if a Eurodollar Loan is continued or
converted into a Base Rate Loan on any day other than the last day of the Interest Period
applicable thereto, then the Borrower shall be subject to the provisions set forth in Section 4.3,
(c) Eurodollar Loans may not be continued nor may Base Rate Loans be converted into Eurodollar
Loans during the existence and continuation of a Default or Event of Default and (d) any request to
extend a Eurodollar Loan that fails to comply with the terms hereof or any failure to request an
extension of a Eurodollar Loan at the end of an Interest Period shall constitute a conversion to a
Base Rate Loan on the last day of the

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applicable Interest Period. Each continuation or conversion must be requested by the Borrower
no later than 11:00 a.m. (i) on the date for a requested conversion of a Eurodollar Loan to a Base
Rate Loan or (ii) three Business Days prior to the date for a requested continuation of a
Eurodollar Loan or conversion of a Base Rate Loan to a Eurodollar Loan, in each case pursuant to a
written Notice of Continuation/Conversion submitted to the Agent which shall set forth (A) whether
the Borrower wishes to continue or convert such Loans and (B) if the request is to continue a
Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan, the Interest Period applicable
thereto.

     2.6 Minimum Amounts.

     Each request for a Revolving Loan or a Term Loan or a conversion or continuation hereunder
shall be subject to the following requirements: (a) each Eurodollar Loan that is a Revolving Loan
shall be in a minimum amount of $10,000,000 (and in integral multiples of $1,000,000 in excess
thereof), (b) each Base Rate Loan that is a Revolving Loan shall be in a minimum amount of the
lesser of $10,000,000 (and in integral multiples of $1,000,000 in excess thereof) or the remaining
amount available to be borrowed, (c) any Term Loan shall be in a minimum amount of the lesser of
$10,000,000 or the remaining amount available to be borrowed, and (d) no more than ten Eurodollar
Loans shall be outstanding hereunder at any one time. For the purposes of this Section, all
Eurodollar Loans with the same Interest Periods that begin and end on the same date shall be
considered as one Eurodollar Loan, but Eurodollar Loans with different Interest Periods, even if
they begin on the same date, shall be considered separate Eurodollar Loans.

     2.7 Reductions of Revolving Committed Amount.

     Upon at least five (5) Business Days’ notice, the Borrower shall have the right to permanently
terminate or reduce the aggregate unused amount of the Revolving Committed Amount at any time or
from time to time; provided, that (a) each partial reduction shall be in an aggregate
amount at least equal to $10,000,000 and in integral multiples of $1,000,000 above such amount, (b)
no reduction shall be made which would reduce the Revolving Committed Amount to an amount less than
the aggregate amount of the then outstanding Revolving Loans plus the aggregate amount of the then
outstanding LOC Obligations plus the aggregate amount of then outstanding Swingline Loans. Any
reduction in (or termination of) the Revolving Committed Amount shall be permanent and may not be
reinstated.

     2.8 Swingline Loans. 

     (a) Swingline Commitment. Subject to the terms and conditions herein, the
Swingline Lender, in its individual capacity, agrees to make loans to the Borrower in
Dollars, at any time and from time to time, during the period from the Effective Date to the
Maturity Date (each a “Swingline Loan” and collectively, the “Swingline
Loans”); provided, however, that (i) the sum of the aggregate amount of Swingline Loans
outstanding plus Revolving Loans outstanding plus LOC Obligations outstanding shall not
exceed the Revolving Committed Amount, (ii) the aggregate amount of Swingline Loans
outstanding at any one time shall not exceed the Swingline Committed Amount, and (iii) the
Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding
Swingline Loan. Subject to the terms and conditions of the Credit Agreement, the Borrower
may borrow, repay and reborrow Swingline Loans.

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     (b) Notice of Borrowing and Funding. By no later than 1:00 p.m. on the date of
the requested borrowing of Swingline Loans, the Borrower shall submit a written Notice of
Borrowing in the form of Exhibit 2.3 to the Agent setting forth (i) the amount
requested and (ii) certification that the Borrower has complied in all respects with Section
5.2. Swingline Loan borrowings shall be made in minimum amounts of $500,000 and in integral
amounts of $100,000 in excess thereof. The amount of the requested Swingline Loans will
then be made available to the Borrower by the Swingline Lender by crediting the account of
the Borrower on the books of such office of the Agent.

     (c) Repayment of Swingline Loans. The Swingline Lender may, at any time, in
its sole discretion, by written notice to the Borrower, demand repayment of its Swingline
Loans by way of a Revolving Loan borrowing, in which case the Borrower shall be deemed to
have requested a Revolving Loan borrowing comprised entirely of Base Rate Loans in the
amount of such Swingline Loans; provided, however, that, in the following
circumstances, any such demand shall also be deemed to have been given one (1) Business Day
prior to each of (i) the date not more than fourteen Business Days after such Swingline Loan
is made, (ii) the Maturity Date, (iii) the occurrence of any Event of Default described in
Section 9.1(e), (iv) upon acceleration of the Obligations hereunder, whether on account of
an Event of Default described in Section 9.1(e) or any other Event of Default and (v) the
exercise of remedies in accordance with the provisions of Section 9.2 hereof (each such
Revolving Loan borrowing made on account of any such deemed request therefor as provided
herein being hereinafter referred to as a “Mandatory Swingline Borrowing”). Each
Lender hereby irrevocably agrees to make such Revolving Loans on the day such notice is
received by the Lenders from the Agent if such notice is received at or before 2:00 p.m.,
otherwise such payment shall be made at or before 12:00 noon on the Business Day next
succeeding the day such notice is received, in the amount and in the manner specified in the
preceding sentence notwithstanding (A) the amount of the Mandatory Swingline
Borrowing may not comply with the minimum amount for borrowings of Revolving Loans otherwise
required hereunder, (B) whether any conditions specified in Section 5.2 are then satisfied,
(C) whether a Default or an Event of Default then exists, (D) failure of any such request or
deemed request for Revolving Loans to be made by the time otherwise required in Section 2.3,
(E) the date of such Mandatory Swingline Borrowing, or (F) any reduction in the Revolving
Committed Amount or termination of the Commitments immediately prior to such Mandatory
Swingline Borrowing or contemporaneously therewith. In the event that any Mandatory
Swingline Borrowing cannot for any reason be made on the date otherwise required above
(including, without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each Lender hereby agrees that it shall forthwith purchase (as of the
date the Mandatory Swingline Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such purchase) from
the Swingline Lender such Participation Interests in the outstanding Swingline Loans as
shall be necessary to cause each such Lender to share in such Swingline Loans ratably based
upon its respective Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to Section 9.2); provided that (x) all
interest payable on the Swingline Loans shall be for the account of the Swingline Lender
until the date as of which the respective Participation Interests is purchased, and (y) at
the time any purchase of Participation Interests pursuant to this sentence is actually made,
the purchasing Revolving Lender shall be required to

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pay to the Swingline Lender interest on the principal amount of such Participation
Interests purchased for each day from and including the day upon which the Mandatory
Swingline Borrowing would otherwise have occurred to but excluding the date of payment for
such participation, at the rate equal to, if paid within two (2) Business Days of the date
of the Mandatory Swingline Borrowing, the Federal Funds Effective Rate, and thereafter at a
rate equal to the Base Rate.

     2.9 Notes.

     (a) The Revolving Loans made by a Lender, upon request of such Lender, shall be
evidenced by a duly executed promissory note of the Borrower payable to such Lender in
substantially the form of Exhibit 2.9(a) (the “Revolving Notes”).

     (b) The Term Loans made by a Lender, upon request of such Lender, shall be evidenced by
a duly executed promissory note of the Borrower payable to such Lender in substantially the
form of Exhibit 2.9(b) (the “Term Loan Notes”).

     (c) The Swingline Loans made by the Swingline Lender, upon request of the Swingline
Lender, shall be evidenced by a promissory note of the Borrower payable to the Swingline
Lender in substantially the form of Exhibit 2.9(c) (the “Swingline Loan
Note”).

     2.10 Increases in Revolving Committed Amount; Extension of Maturity Date

     (a) Requested Increases. The Borrower shall have the right, prior to the
Maturity Date and with the consent of the Agent and the Issuing Lenders (such consent not to
be unreasonably withheld) with respect to the identity of any new Lender, from time to time
during the term of this Credit Agreement, and subject to the terms and conditions set forth
below, to increase the aggregate amount of the Revolving Committed Amount; provided that (i)
no Default or Event of Default shall exist at the time of the request or the proposed
increase in the Revolving Committed Amount and all conditions precedent for a Loan set forth
in Section 5.2(b) and (c) have been satisfied, (ii) such increase must be in a minimum
amount of $10,000,000 and in integral multiples of $1,000,000 above such amount, (iii) the
Revolving Committed Amount shall not be increased to an amount greater than SEVEN HUNDRED
FIFTY MILLION DOLLARS ($750,000,000) less any principal amounts outstanding under any Term
Loans that by their terms automatically increase the Revolving Committed Amount upon any
prepayment thereof in connection with a Permitted Acquisition or capital expenditure as
provided in Section 3.2(a)(iii), (iv) no individual Lender’s Commitment may be increased
without such Lender’s written consent, (v) the Borrower shall execute and deliver such
Revolving Note(s) as are necessary to reflect the increase in the Revolving Committed
Amount, (vi) Schedule 1.1 shall be amended to reflect the revised Revolving
Committed Amount and revised Commitments and Commitment Percentages of the Lenders and (vii)
if any Revolving Loans are outstanding at the time of an increase in the Revolving Committed
Amount, the Borrower will prepay (provided that any such prepayment shall be subject to
Section 4.3) one or more existing Revolving Loans in an amount necessary such that after
giving effect to the increase in the Revolving Committed Amount each Lender will hold its
Commitment Percentage (based on its share of the revised Revolving Committed Amount) of
outstanding Revolving Loans.

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     Any such increase in the Revolving Committed Amount shall apply, at the option of the
Borrower, to (x) the Commitment of one or more existing Lenders; provided that any Lender
whose Commitment is being increased must consent in writing thereto and/or (y) the creation
of a new Commitment to one or more institutions that is not an existing Lender; provided
that any such institution (A) must conform to the definition of Eligible Assignee, (B) must
have a Commitment of at least $10,000,000 unless otherwise agreed to by the Agent and the
Borrower and (C) must become a Lender under this Credit Agreement by execution and delivery
of an appropriate joinder agreement or of counterparts to this Credit Agreement in a manner
acceptable to the Borrower and the Agent.

     (b) Automatic Increases. The Revolving Committed Amount shall, so long as no
Default shall have occurred and be continuing, be automatically increased (without the
consent of Lenders) and Revolving Loans made under such increased Revolving Committed Amount
from time to time in order to prepay the Term Loans in accordance with Section 3.2(a)(iii).
Upon any such increase, (i) each applicable Lender’s Original Revolving Commitment shall be
increased automatically in accordance with its Original Revolving Commitment Percentage,
(ii) Schedule 1.1 shall be amended to reflect the revised Revolving Committed Amount
and the revised Commitments and, if applicable, Commitment Percentages of the Lenders and
(iii) if the Borrower has previously increased the Revolving Committed Amount pursuant to
Section 2.10(a) and any Revolving Loans are outstanding at the time of such increase in the
Revolving Committed Amount, the Borrower will prepay (provided that any such prepayment
shall be subject to Section 4.3) one or more existing Revolving Loans in an amount necessary
such that after giving effect to the increase in the Revolving Committed Amount each Lender
will hold its Commitment Percentage (as revised due to the increase in the Revolving
Committed Amount) of outstanding Revolving Loans. For the avoidance of doubt, no Commitment
or Commitment Percentage obtained by a Lender pursuant to Section 2.10(a) shall be subject
to increase pursuant to this Section 2.10(b) or Section 3.2(a)(iii).

     (c) Extension of Maturity Date. The Borrower may make unlimited requests for
one-year extensions of the Maturity Date by delivering a written request for same to the
Agent no earlier than 30 days prior to the first anniversary of the Effective Date and no
later than 30 days prior to the Maturity Date (or previously extended Maturity Date pursuant
hereto). Any such extension shall be effective if (i) consented to by Required Lenders
within thirty (30) days after such request, (ii) on the Maturity Date as it existed
immediately before such extension (A) the Commitments of the dissenting Lenders are
terminated (which termination shall be effective automatically), (B) all amounts owing to
such dissenting Lenders are paid in full (which payments shall not be subject to Section
3.6(a)), and (C) the total Commitments are permanently reduced by an amount equal to such
dissenting Lenders’ Commitments so terminated, except to the extent that the Commitments of
the dissenting Lenders are replaced pursuant to Section 2.10(a) and/or one or more Lenders
agree(s) to increase their respective Commitment(s), (iii) all conditions precedent for a
Loan or the issuance of a Letter of Credit set forth in Section 5.2 have been satisfied, and
(iv) the Borrower does not withdraw its request for such extension before the Maturity Date
(or previously extended Maturity Date pursuant hereto).

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     2.11 Additional Term Loans.

     (a) The Borrower shall have the right, prior to the Maturity Date and with the consent
of the Agent (such consent not to be unreasonably withheld) with respect to the identity of
any new Lender, from time to time during the term of this Credit Agreement, and subject to
the terms and conditions set forth below, to request additional term loans (which may or may
not by their terms, at the election of the Borrower, automatically increase the aggregate
amount of the Revolving Committed Amount upon any prepayment thereof in connection with a
Permitted Acquisition or capital expenditure as provided in Section 3.2(a)(iii)); provided
that (i) no Default or Event of Default shall exist at the time of the request or the
proposed additional term loans and all conditions precedent for a Loan set forth in Section
5.2(b), (c) and (e) have been satisfied, (ii) such increase must be in a minimum amount of
$10,000,000 and in integral multiples of $1,000,000 above such amount, (iii) no such
additional term loan may by its terms provide for an automatic increase in the aggregate
amount of the Revolving Committed Amount upon any prepayment thereof in connection with a
Permitted Acquisition or capital expenditure as provided in Section 3.2(a)(iii), if the sum
of (x) such additional term loans, plus the (y) Revolving Committed Amount,
plus (z) any principal amounts outstanding under any Term Loans that by their terms
automatically increase the aggregate amount of the Revolving Committed Amount upon any
prepayment thereof in connection with a Permitted Acquisition or capital expenditure as
provided in Section 3.2(a)(iii), shall exceed SEVEN HUNDRED FIFTY MILLION DOLLARS
($750,000,000), (iv) no individual Lender shall be required to make any such additional term
loan without such Lender’s written consent, (v) the Borrower shall execute and deliver such
Term Note(s) and amendments and collateral documentation reasonably satisfactory to the
Agent and provide Permitted Cash Collateral as required pursuant to Section 7.13 hereof to
collateralize such additional Term Loans, and (vi) Schedule 1.1 shall be amended to
reflect the revised Term Loan Amounts of the Lenders.

     Any such additional term loans shall be made, at the option of the Borrower, by (x) one
or more existing Lenders; provided that any Lender making such additional term loan must
consent in writing thereto and/or (y) one or more institutions that is not an existing
Lender; provided that any such institution (A) must conform to the definition of Eligible
Assignee, (B) must have an additional term loan of at least $10,000,000 unless otherwise
agreed to by the Agent and the Borrower and (C) must become a Lender under this Credit
Agreement by execution and delivery of an appropriate joinder agreement or of counterparts
to this Credit Agreement in a manner acceptable to the Borrower and the Agent.

SECTION 3.

PAYMENTS

     3.1 Interest.

     (a) Interest Rate.

     (i) All Base Rate Loans shall accrue interest at the Adjusted Base Rate.

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     (ii) All Eurodollar Loans shall accrue interest at the Adjusted Eurodollar Rate
applicable to such Eurodollar Loan.

     (iii) All Swingline Loans shall accrue interest at the Adjusted LIBOR Market
Index Rate applicable to such Swingline Loan.

     (b) Default Rate of Interest. Upon the occurrence, and during the
continuation, of an Event of Default, all past due principal of and, to the extent permitted
by law, past due interest on, the Loans and any other past due amounts owing hereunder or
under the other Credit Documents shall bear interest, payable on demand, at a per annum rate
equal to one percent (1%) plus the rate which would otherwise be applicable (or if no rate
is applicable, then the rate for Loans that are Base Rate Loans plus one percent (1%) per
annum).

     (c) Interest Payments. Interest on Loans shall be due and payable in arrears
on each Interest Payment Date.

     3.2 Prepayments. 

     (a) Voluntary Prepayments. The Borrower shall have the right to prepay Loans
in whole or in part from time to time without premium or penalty; provided, however,
that (i) Eurodollar Loans may only be prepaid on three Business Days’ prior written notice
to the Agent and any prepayment of Eurodollar Loans will be subject to Section 4.3; (ii)
each such partial prepayment of Revolving Loans shall be in the minimum principal amount of
$10,000,000 and each such partial prepayment of Term Loans shall be in the minimum principal
amount of $1,000,000; (iii) any prepayment of Term Loans that by their terms automatically
increase the aggregate amount of the Revolving Committed Amount upon any prepayment thereof
in connection with a Permitted Acquisition or capital expenditure as provided in this
Section 3.2(a)(iii), in connection with such a Permitted Acquisition or capital expenditure,
shall, so long as no Default shall have occurred and be continuing, cause the Revolving
Committed Amount to be increased in the same dollar amount of such prepayment (and Revolving
Loans automatically made under such increased Revolving Committed Amount in order to make
such prepayment of the Term Loans) and shall be subject to Section 2.10(b), and (iv) any
prepayment of Term Loans shall be applied first (x) to Term Loans that by their
terms automatically increase the aggregate amount of the Revolving Committed Amount upon any
prepayment thereof in connection with a Permitted Acquisition or capital expenditure as
provided in Section this 3.2(a)(iii), to be applied to such Term Loans in the order in which
such Term Loans were made, and then (y) to the remaining Term Loans. Any
prepayments made under this Section 3.2(a) shall be applied first to Base Rate Loans and
then to Eurodollar Loans in direct order of Interest Period maturities and shall be subject
to Section 4.3. The increase in the Revolving Committed Amount pursuant to this clause (a)
may, upon request of the Borrower, occur concurrently with the prepayment of the Term Loans.

     (b) Mandatory Prepayments. If at any time the amount of Revolving Loans
outstanding plus Swingline Loans outstanding plus the aggregate amount of LOC Obligations
outstanding exceeds the Revolving Committed Amount, the Borrower shall immediately make a
principal payment to the Agent in a manner and in an amount necessary to be in compliance
with Sections 2.1(a), 2.2 and 2.8 and as directed by the Agent. All

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amounts required to be paid pursuant to this Section 3.2(b)(i) shall be (A) applied
first to Swingline Loans, then to Revolving Loans (first to Base Rate Loans and then to
Eurodollar Loans in the direct order of Interest Period maturities) and then to a cash
collateral account in respect of LOC Obligations and (B) subject to Section 4.3.

     3.3 Payment of Loans in full at Maturity.

     On the Maturity Date, the entire outstanding principal balance of all Loans, together
with accrued but unpaid interest and all other sums owing under this Credit Agreement, shall
be due and payable in full, unless accelerated sooner pursuant to Section 9.2.

     3.4 Fees.

     (a) Facility Fees. The Borrower shall pay to the Agent, for the pro rata
benefit of the Lenders, a facility fee (the “Facility Fee”) equal to the Applicable
Margin for Facility Fees times the actual daily amount of Revolving Committed Amount
(or, if the Commitments have terminated, on the outstanding amount of all Revolving Loans,
Swingline Loans and LOC Obligations), regardless of usage. The Facility Fee shall accrue at
all times during the period beginning on the Effective Date and ending on the Maturity Date
(and thereafter so long as any Revolving Loans, Swingline Loans or LOC Obligations remain
outstanding), including at any time during which one or more of the conditions in Section
5.2 is not met, and shall be due and payable quarterly in arrears on the 15th day
following the last day of each calendar quarter for the prior calendar quarter, commencing
with the first such date to occur after the Effective Date, and on the Maturity Date (and,
if applicable, thereafter on demand). The Facility Fee shall be calculated quarterly in
arrears, and if there is any change in the Applicable Margin for Facility Fees during any
quarter, the actual daily amount shall be computed and multiplied by the Applicable Margin
for Facility Fees separately for each period during such quarter that such Applicable Margin
for Facility Fees was in effect.

     (b) Letter of Credit Fees.

     (i) Letter of Credit Fees. In consideration of the issuance of Letters
of Credit hereunder, the Borrower agrees to pay to the Agent, for the pro rata
benefit of each Lender, a per annum fee equal to the Applicable Margin for
Eurodollar Loans in effect from time to time on the aggregate stated amount for each
Letter of Credit from the date of issuance to the date of expiration (the
“Letter of Credit Fees”). The accrued Letter of Credit Fees shall be due
and payable in arrears on the 15th day after the end of each calendar
quarter of the Borrower (as well as on the Maturity Date) for the immediately
preceding calendar quarter (or portion thereof), beginning with the first of such
dates to occur after the Closing Date.

     (ii) Issuing Lender Fees. In addition to the Letter of Credit Fees
payable pursuant to subsection (i) above, the Borrower shall pay to the applicable
Issuing Lender for its own account, without sharing by the other Lenders, (A) if the
applicable Issuing Lender is Wachovia Bank, National Association, the fronting fee
as described in the Fee Letter. or (B) if the applicable Issuing Lender is any other
Lender, such other rate as may be agreed to between such Issuing

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Lender and the Borrower, in each case on the total sum of all Letters of Credit
issued by the applicable Issuing Lender and outstanding during the applicable period
and (C) the customary charges from time to time to the applicable Issuing Lender for
its services in connection with the issuance, amendment, payment, transfer,
administration, cancellation and conversion of, and drawings under, such Letters of
Credit (collectively, the “Issuing Lender Fees”). The accrued Issuing
Lender Fees shall be due and payable in arrears on the 15th day following
the last day of each calendar quarter of the Borrower (as well as on the Maturity
Date) for the immediately preceding calendar quarter (or portion thereof), beginning
with the first of such dates to occur after the Closing Date.

     (c) Utilization Fees.

     (i) If on any day the aggregate outstanding principal amount of all Revolving
Loans, Swingline Loans and LOC Obligations exceeds (A) fifty percent (50%)
times (B) the Total Committed Amount, the Borrower agrees to pay to the
Agent, for the pro rata benefit of each Lender, a utilization fee equal to the
Applicable Margin for Utilization Fees multiplied by the Utilized Revolving Loan
Commitment (the “Utilization Fees”).

     (ii) The accrued Utilization Fees shall be due and payable in arrears on the
15th day following the last day of each calendar quarter of the Borrower
for the immediately preceding calendar quarter (or portion thereof), beginning with
the first of such dates to occur after the Effective Date.

     (d) Administrative Fee. The Borrower agrees to pay to the Agent the annual
administrative fee as described in the Fee Letter.

     3.5 Place and Manner of Payments.

     All payments of principal, interest, fees, expenses and other amounts to be made by the
Borrower under this Credit Agreement shall be made without setoff, deduction or counterclaim and
received not later than 2:00 p.m. on the date when due in Dollars and in immediately available
funds by the Agent at the Agency Services Address. The Borrower shall, at the time it makes any
payment under this Credit Agreement, specify to the Agent the Loans, Letters of Credit, fees or
other amounts payable by the Borrower hereunder to which such payment is to be applied (and in the
event that it fails to specify, or if such application would be inconsistent with the terms hereof,
the Agent shall distribute such payment to the Lenders in such manner as it reasonably determines
in its sole discretion). The Agent will distribute such payments to the applicable Lenders on the
same Business Day if any such payment is received prior to 2:00 p.m.; otherwise the Agent will
distribute each payment to the applicable Lenders prior to 12:00 noon on the next succeeding
Business Day. Whenever any payment hereunder shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding Business Day (subject
to accrual of interest and fees for the period of such extension), except that in the case of
Eurodollar Loans, if the extension would cause the payment to be made in the next following
calendar month, then such payment shall be made on the next preceding Business Day.

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     3.6 Pro Rata Treatment.

     (a) Loans/Fees. Except to the extent otherwise provided herein, all borrowing
of Revolving Loans (including each Mandatory Borrowing) and Term Loans, each payment or
prepayment of principal of any Revolving Loan or Term Loan, each payment of interest on the
Revolving Loans or Term Loans, each payment of Facility Fees and Utilization Fees, each
payment of Letter of Credit Fees, each reduction of the Revolving Committed Amount and each
conversion or continuation of any Revolving Loan or Term Loan, shall be allocated pro rata
among the Lenders in accordance with their respective Commitment Percentages;
provided, that, if any Lender shall have failed to pay its applicable pro rata share
of any Loan, then any amount to which such Lender would otherwise be entitled pursuant to
this Section 3.6 shall instead be payable to the Agent until the share of such Loan not
funded by such Lender has been repaid and any interest owed by such Lender as result of such
failure to fund has been paid; and provided, further, that in the event any
amount paid to any Lender pursuant to this Section 3.6 is rescinded or must otherwise be
returned by the Agent, each Lender shall, upon the written request of the Agent, repay to
the Agent the amount so paid to such Lender, with interest for the period commencing on the
date such payment is returned by the Agent until the date the Agent receives such repayment
at a rate per annum equal to, during the period to but excluding the date two Business Days
after such request, the Federal Funds Rate, and thereafter, the Base Rate plus one
percent (1%) per annum.

     (b) Letters of Credit. Each payment of unreimbursed drawings in respect of LOC
Obligations shall be allocated to each Lender pro rata in accordance with its Commitment
Percentage; provided, that, if any Lender shall have failed to pay its applicable
pro rata share of any drawing under any Letter of Credit, then any amount to which such
Lender would otherwise be entitled pursuant to this subsection (b) shall instead be payable
to the applicable Issuing Lender; provided, further, that in the event any
amount paid to any Lender pursuant to this subsection (b) is rescinded or must otherwise be
returned by the applicable Issuing Lender, each Lender shall, upon the written request of
the applicable Issuing Lender, repay to the Agent for the account of the applicable Issuing
Lender the amount so paid to such Lender, with interest for the period commencing on the
date such payment is returned by the applicable Issuing Lender until the date the applicable
Issuing Lender receives such repayment at a rate per annum equal to, during the period to
but excluding the date two Business Days after such request, the Federal Funds Rate, and
thereafter, the Base Rate plus one percent (1%) per annum.

     3.7 Computations of Interest and Fees. 

     (a) Except for Base Rate Loans that are based upon the Prime Rate, on which interest
shall be computed on the basis of a 365 or 366 day year as the case may be, all computations
of interest and fees hereunder shall be made on the basis of the actual number of days
elapsed over a year of 360 days.

     (b) It is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements, whether now

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existing or hereafter arising and whether written or oral. In no way, nor in any event
or contingency (including but not limited to prepayment or acceleration of the maturity of
any obligation), shall the interest taken, reserved, contracted for, charged, or received
under this Credit Agreement, under the Notes or otherwise, exceed the maximum nonusurious
amount permissible under applicable law. If, from any possible construction of any of the
Credit Documents or any other document, interest would otherwise be payable in excess of the
maximum nonusurious amount, any such construction shall be subject to the provisions of this
paragraph and interest owing pursuant to such documents shall be automatically reduced to
the maximum nonusurious amount permitted under applicable law, without the necessity of
execution of any amendment or new document. If any Lender shall ever receive anything of
value which is characterized as interest on the Loans under applicable law and which would,
apart from this provision, be in excess of the maximum lawful amount, an amount equal to the
amount which would have been excessive interest shall, without penalty, be applied to the
reduction of the principal amount owing on the Loans and not to the payment of interest, or
refunded to a Credit Party or the other payor thereof if and to the extent such amount which
would have been excessive exceeds such unpaid principal amount of the Loans. The right to
demand payment of the Loans or any other indebtedness evidenced by any of the Credit
Documents does not include the right to receive any interest which has not otherwise accrued
on the date of such demand, and the Lenders do not intend to charge or receive any unearned
interest in the event of such demand. All interest paid or agreed to be paid to the Lenders
with respect to the Loans shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term (including any renewal or
extension) of the Loans so that the amount of interest on account of such indebtedness does
not exceed the maximum nonusurious amount permitted by applicable law.

     3.8 Sharing of Payments.

     Each Lender agrees that, in the event that any Lender shall obtain payment in respect of any
Loan, any unreimbursed drawing with respect to any LOC Obligations or any other obligation owing to
such Lender under this Credit Agreement through the exercise of a right of set-off, banker’s lien,
counterclaim or otherwise (including, but not limited to, pursuant to the Bankruptcy Code) in
excess of its pro rata share as provided for in this Credit Agreement, such Lender shall promptly
purchase from the other Lenders a participation in such Loans, LOC Obligations and other
obligations, in such amounts and with such other adjustments from time to time, as shall be
equitable in order that all Lenders share such payment in accordance with their respective ratable
shares as provided for in this Credit Agreement. Each Lender further agrees that if a payment to a
Lender (which is obtained by such Lender through the exercise of a right of set-off, banker’s lien,
counterclaim or otherwise) shall be rescinded or must otherwise be restored, each Lender which
shall have shared the benefit of such payment shall, by repurchase of a participation theretofore
sold, return its share of that benefit to each Lender whose payment shall have been rescinded or
otherwise restored. The Borrower agrees that any Lender so purchasing such a participation may, to
the fullest extent permitted by law, exercise all rights of payment, including set-off, banker’s
lien or counterclaim, with respect to such participation as fully as if such Lender were a holder
of such Loan or other obligation in the amount of such participation. Except as otherwise
expressly provided in this Credit Agreement, if any Lender shall fail to remit to the Agent or any
other Lender an amount payable by such Lender to the Agent or such other Lender pursuant to this
Credit Agreement on the date when such amount is due, such payments shall accrue interest thereon,
for

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each day from the date such amount is due until the day such amount is paid to the Agent or
such other Lender, at a rate per annum equal to the Federal Funds Rate. If under any applicable
bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a
setoff to which this Section 3.8 applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the rights of the Lenders
under this Section 3.8 to share in the benefits of any recovery on such secured claim.

     3.9 Evidence of Debt.

     (a) Each Lender shall maintain an account or accounts evidencing each Loan made by such
Lender to the Borrower from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Credit Agreement. Each Lender
will make reasonable efforts to maintain the accuracy of its account or accounts and to
promptly update its account or accounts from time to time, as necessary.

     (b) The Agent shall maintain the Register pursuant to Section 11.3(c), and a subaccount
for each Lender, in which Register and subaccounts (taken together) shall be recorded (i)
the amount, type and Interest Period of each such Loan hereunder, (ii) the amount of any
principal or interest due and payable or to become due and payable to each Lender hereunder
and (iii) the amount of any sum received by the Agent hereunder from or for the account of
the Borrower and each Lender’s share thereof. The Agent will make reasonable efforts to
maintain the accuracy of the subaccounts referred to in the preceding sentence and to
promptly update such subaccounts from time to time, as necessary.

     (c) The entries made in the Register and subaccounts maintained pursuant to subsection
(b) of this Section 3.9, and the entries made in the accounts maintained pursuant to
subsection (a) of this Section 3.9, if consistent with the entries of the Agent, shall be
prima facie evidence of the existence and amounts of the obligations of the Borrower therein
recorded; provided, however, that the failure of any Lender or the Agent to
maintain any such account, such Register or such subaccount, as applicable, or any error
therein, shall not in any manner affect the obligation of the Borrower to repay the Loans
made by such Lender in accordance with the terms hereof.

SECTION 4.

ADDITIONAL PROVISIONS

     4.1 Eurodollar Loan Provisions.

     (a) Unavailability. If, on or prior to the first day of any Interest Period,
(i) the Agent shall have determined in good faith (which determination shall be conclusive
and binding upon the Borrower) that (A) Dollar deposits are not generally available in the
London interbank Eurodollar market in the applicable principal amounts and Interest Period
of a requested Eurodollar Loan or (B) by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for
such Interest Period, or (ii) the Agent shall have received notice from the Required Lenders
that the Eurodollar Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to the Lenders of making or maintaining Eurodollar

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Loans for such Interest Period (as conclusively certified by such Lenders), the Agent
shall give notice thereof to the Borrower and the Lenders as soon as practicable thereafter.
Upon delivery of such notice, (A) any Eurodollar Loans requested to be made on the first
day of such Interest Period shall be made as Base Rate Loans, (B) any Loans that were to
have been converted to or continued as Eurodollar Loans shall be prepaid by the Borrower or
converted to or continued as Base Rate Loans and (C) any outstanding Eurodollar Loans shall
be converted on the date of such notice to Base Rate Loans. Until the Agent has withdrawn
such notice, no further Eurodollar Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Base Rate Loans to Eurodollar Loans.

     (b) Change in Legality. Notwithstanding any other provision herein, if any
change, after the date hereof, in any law, governmental rule, regulation, guideline or order
(including the introduction of any new law or governmental rule, regulation, guideline or
order) or in the interpretation or administration thereof by any Governmental Authority
charged with the interpretation or administration thereof shall make it unlawful for any
Lender to make or maintain any Eurodollar Loan then, by written notice to the Borrower and
to the Agent, such Lender may:

     (i) declare that Eurodollar Loans and conversions to or continuations of
Eurodollar Loans, will not thereafter be made by such Lender hereunder, whereupon
any request by the Borrower for, or for conversion into or continuation of,
Eurodollar Loans shall, as to such Lender only, be deemed a request for, or for
conversion into or continuation of, Base Rate Loans, unless such declaration shall
be subsequently withdrawn; and

     (ii) require that all outstanding Eurodollar Loans made by it be converted to
Base Rate Loans in which event all such Eurodollar Loans shall be converted to Base
Rate Loans either (A) on the last day of the then current Interest Period applicable
to such Eurodollar Loan if such Lender can lawfully continue to maintain and fund
such Eurodollar Loan or (B) immediately if such Lender shall determine that it may
not lawfully continue to maintain and fund such Eurodollar Loan to such day.

     (c) Requirements of Law. If at any time a Lender shall incur increased costs
or reductions in the amounts received or receivable hereunder with respect to the making,
the commitment to make or the maintaining of any Eurodollar Loan or of agreeing to issue or
participate in any Letters of Credit because of (i) any change after the date hereof in any
law, governmental rule, regulation, guideline or order (including the introduction of any
new law or governmental rule, regulation, guideline or order) or in the interpretation or
administration thereof by any Governmental Authority charged with the interpretation or
administration thereof, including, without limitation, the imposition, modification or
deemed applicability of any reserves, deposits or similar requirements (such as, for
example, but not limited to, a change in official reserve requirements) or (ii) other
circumstances affecting the London interbank Eurodollar market; then the Borrower shall pay
to such Lender promptly upon written demand therefor, such additional amounts (in the form
of an increased rate of, or a different method of calculating, interest or otherwise as such
Lender may determine in its sole discretion) as may be required to compensate such Lender
for such increased costs or reductions in amounts receivable hereunder. If any Lender
becomes entitled to claim any

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additional amounts pursuant to this Section 4.1(c), it shall provide prompt notice
thereof to the Borrower, through the Agent, certifying (A) that one of the events described
in this Section 4.1(c) has occurred and describing in reasonable detail the nature of such
event, (B) as to the increased cost or reduced amount resulting from such event and (C) as
to the additional amount demanded by such Lender and a reasonably detailed explanation of
the calculation thereof; provided, that no such amount shall be payable with respect
to any period commencing more than 90 days prior to the date such Lender first notifies the
Borrower of its intention to demand compensation therefor under this Section.

     (d) Regulation D Compensation. In the event that a Lender is required to
maintain reserves of the type contemplated by the definition of “Eurodollar Reserve
Percentage”, such Lender may require the Borrower to pay, contemporaneously with each
payment of interest on the Eurodollar Loans, additional interest on the related Eurodollar
Loan of such Lender at a rate per annum determined by such Lender up to but not exceeding
the excess of (i)(A) the applicable London Interbank Offered Rate divided by (B) one
minus the Eurodollar Reserve Percentage over (ii) the applicable London Interbank
Offered Rate. Any Lender wishing to require payment of such additional interest (x) shall
so notify the Borrower and the Agent, in which case such additional interest on the
Eurodollar Loans of such Lender shall be payable to such Lender at the place indicated in
such notice with respect to each Interest Period commencing at least three Business Days
after the giving of such notice and (y) shall notify the Borrower at least three Business
Days prior to each date on which interest is payable on the Eurodollar Loans of the amount
then due it under this Section. Each such notification shall be accompanied by such
information as the Borrower may reasonably request.

     Each determination and calculation made by a Lender under this Section 4.1 shall, absent
manifest error, be binding and conclusive on the parties hereto. Any conversions of Eurodollar
Loans made pursuant to this Section 4.1 shall subject the Borrower to the payments required by
Section 4.3 to the extent applicable. This Section shall survive termination of this Credit
Agreement and the other Credit Documents and payment of the Loans and all other amounts payable
hereunder.

     4.2 Capital Adequacy.

     If any Lender has determined that the adoption or becoming effective, after the date hereof,
of any applicable law, rule or regulation regarding capital adequacy, or any change therein (after
the date hereof), or any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by such Lender (or its parent corporation) with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such Governmental
Authority, central bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender’s (or parent corporation’s) capital or assets as a consequence of its
commitments or obligations hereunder to a level below that which such Lender (or its parent
corporation) could have achieved but for such adoption, effectiveness, change or compliance (taking
into consideration such Lender’s (or parent corporation’s) policies with respect to capital
adequacy), then, upon notice from such Lender (which shall include the basis and calculations in
reasonable detail supporting the compensation requested in such notice), and receipt by the
Borrower of such written notice from such Lender (with a copy to the Agent) the Borrower shall be
obligated to pay to such Lender such additional amount or amounts as will compensate such Lender on
an after tax

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basis (after taking into account applicable deductions and credits in respect of the amount so
indemnified) for such reduction; provided, that no such amount shall be payable with
respect to any period commencing more than 90 days prior to the date such Lender first notifies the
Borrower of its intention to demand compensation therefor under this Section. Each determination
by any Lender of amounts owing under this Section 4.2 shall, absent manifest error, be conclusive
and binding on the parties hereto. The covenants of this Section 4.2 shall survive termination of
this Credit Agreement and the other Credit Documents and the payment of the Loans and all other
amounts payable hereunder.

     4.3 Compensation.

     The Borrower promises to indemnify each Lender and to hold each Lender harmless from any loss
or expense which such Lender may sustain or incur as a consequence of (a) default by the Borrower
in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower
has given a notice requesting the same in accordance with the provisions of this Credit Agreement,
(b) default by the Borrower in making any prepayment of a Eurodollar Loan after the Borrower has
given a notice thereof in accordance with the provisions of this Credit Agreement, (c) the making
of a prepayment of Eurodollar Loans on a day which is not the last day of an Interest Period with
respect thereto and (d) the payment, continuation or conversion of a Eurodollar Loan on a day which
is not the last day of the Interest Period applicable thereto or the failure to repay a Eurodollar
Loan when required by the terms of this Credit Agreement. Such indemnification may include an
amount equal to (i) an amount of interest calculated at the Eurodollar Rate which would have
accrued on the amount in question, for the period from the date of such prepayment or of such
failure to borrow, convert, continue or repay to the last day of the applicable Interest Period
(or, in the case of a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of interest for such
Eurodollar Loans provided for herein minus (ii) the amount of interest (as reasonably determined by
such Lender) which would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank Eurocurrency market. If any
Lender becomes entitled to claim any additional amounts pursuant to this Section 4.3, it shall
provide prompt notice thereof to the Borrower, through the Agent, as to the additional amount
demanded by such Lender and a reasonably detailed explanation of the calculation thereof. The
covenants in this Section 4.3 shall survive the termination of this Credit Agreement and the
payment of the Loans and all other amounts payable hereunder.

     4.4 Taxes.

     (a) Except as provided below in this Section 4.4, all payments made by any Credit Party
under this Credit Agreement and any Notes shall be made free and clear of, and without
deduction or withholding for or on account of, any Non-Excluded Taxes or Other Taxes. If any
such Non-Excluded Taxes or Other Taxes are required to be withheld from any amounts payable
to an Agent or any Lender hereunder or under any Notes, (A) the amounts so payable to the
Agent or such Lender shall be increased to the extent necessary to yield to the Agent or
such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such
other amounts payable hereunder at the rates or in the amounts specified in this Credit
Agreement and any Notes had no such deduction or withholding been made, provided,
however, that the Credit Party shall be entitled to deduct and withhold any
Non-Excluded Taxes and Other Taxes and shall not be required to increase any such

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amounts payable to any Foreign Lender if such Foreign Lender fails to comply with the
requirements of paragraph (c) or (d) of this Section 4.4 (but only if such Foreign Lender’s
failure to comply materially prejudices such Credit Party), and (B) as promptly as possible
after requested, such Credit Party shall send to the Agent for its own account or for the
account of such Lender, as the case may be, a certified copy of an original official receipt
received by such Credit Party evidencing payment of any such withheld Non-Excluded or Other
Taxes, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Agent.

     (b) If any Credit Party fails to pay any Non-Excluded Taxes or Other Taxes when due to
the appropriate Governmental Authority, or fails to remit to the Agent the required receipts
or other required documentary evidence, Credit Parties shall indemnify the Agent and any
Lender for any incremental Non-Excluded Taxes and Other Taxes, interest or penalties that
may become payable by the Agent or any Lender as a result of any such failure, whether or
not such Non-Excluded Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error. The agreements in this
Section 4.4 shall survive the termination of this Credit Agreement and the payment of the
Loans and all other amounts payable hereunder.

     (c) Any Lender, if reasonably requested in writing by the Borrower or the Agent, shall
deliver such documentation as is prescribed by applicable law as will enable the Borrower or
the Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements. In addition, each Foreign Lender shall:

	 	 	 	 	 
	 

	 	(i)
	 	(A) on or before the date on which such Foreign
Lender becomes a Lender hereunder or, in any event, no later than the
time or times prescribed by applicable law, (x) deliver to the Borrower
and the Agent two duly completed copies of United States Internal
Revenue Service Form W-8BEN or W-8ECI, or any successor applicable
form, as the case may be, certifying that it is entitled to receive
payments under this Credit Agreement and any Notes without deduction or
withholding of any United States federal income taxes, and (y) deliver
an Internal Revenue Service Form W-8BEN or W-9, or successor applicable
form, as the case may be, certifying that it is entitled to an
exemption from United States backup withholding tax;
	 
	 	 	 	 
	 

	 	 	 	(B) deliver to the Borrower and the
Agent two further copies of any such form or certification on
or before the date that any such form or certification expires
or becomes obsolete and after the occurrence of any event
requiring a change in the most recent form previously delivered
by it to the Borrower; and
	 
	 	 	 	 
	 

	 	 	 	(C) obtain such extensions of time for filing and complete such
forms or certifications as may reasonably be requested by the
Borrower or the Agent; or

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     (ii) in the case of any Foreign Lender claiming the benefits of the exemption
for portfolio interest under Section 881(c) of the Code, deliver to the Borrower and
the Agent on or before the date such Foreign Lender becomes a Lender hereunder, two
copies of (A) a certificate to the effect that such Foreign Lender is not (x) a
“bank” within the meaning of Section 881(c)(3)(A) of the Code, (y) a “10-percent
shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code,
or (z) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the
Code, and (B) duly completed copies of Internal Revenue Service Form W-8BEN;

     (iii) deliver to the Borrower and the Agent two further copies of Internal
Revenue Service Form W-8BEN, W-8ECI, W-9 or any other such form on or before the
date it expires or becomes obsolete and after the occurrence of any event requiring
a change in the most recently provided form and, if necessary, obtain any extensions
of time reasonably requested by the Borrower or the Agent for filing and completing
such forms); and

     (iv) agree, to the extent legally entitled to do so, upon reasonable request by
the Borrower, to provide to the Borrower (for the benefit of the Borrower and the
Agent) such other forms as may be reasonably required in order to establish the
legal entitlement of such Lender to an exemption from or reduction of withholding
with respect to payments under this Credit Agreement and any Notes.

     (d) Notwithstanding the above, if any change in treaty, law or regulation (“Change in
Law”) has occurred after the date such Person becomes a Lender hereunder which renders all
such forms inapplicable or which would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender so advises the Borrower and the
Agent, then such Lender shall be exempt from such requirements. Each Person that shall
become a Lender or a participant of a Lender pursuant to Section 11.3 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms,
certifications and statements required pursuant to subsections (c) and (d) of this Section
4.4; provided, that in the case of a participant of a Lender, the obligations of
such participant of a Lender pursuant to subsections (c) and (d) of this Section 4.4, shall
be determined as if the participant of a Lender were a Lender except that such participant
of a Lender shall furnish all such required forms, certifications and statements to the
Lender from which the related participation shall have been purchased and, upon reasonable
request by the Borrower or the Agent, such Lender shall provide a copy of all such forms and
any other required forms (e.g., Internal Revenue Service Form W-8IMY) to the Borrower and
the Agent.

     (e) If the Agent or a Lender determines in its sole discretion that it has received a
refund of any Non-Excluded Taxes or Other Taxes as to which any Credit Party has paid
additional amounts pursuant to this Section 4.4, it shall pay over an amount equal to such
refund to such Credit Party (but only to the extent of additional amounts paid by such
Credit Party under this Section 4.4 with respect to the Non-Excluded Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the Agent or such Lender
and without interest (other than any interest paid by the relevant Governmental Authority
with

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respect to such refund); provided, that such Credit Party, upon the request of the
Agent or such Lender, agrees to repay the amount paid over to such Credit Party (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Agent or such Lender in the event the Agent or such Lender is required to repay such refund
to such Governmental Authority. This subsection (e) shall not be construed to require the
Agent or any Lender to make available its tax returns (or any other information relating to
its taxes which it deems confidential) to the Borrower or any other Person.

     4.5 Replacement of Lenders.

     The Agent and each Lender shall use reasonable efforts to avoid or mitigate any increased cost
or suspension of the availability of an interest rate under Sections 4.1 through 4.4 above to the
greatest extent practicable (including transferring the Loans to another lending office or
Affiliate of a Lender) unless, in the opinion of the Agent or such Lender, such efforts would be
likely to have an adverse effect upon it. In the event a Lender makes a request to the Borrower
for additional payments in accordance with Section 4.1, 4.2 or 4.4, or suspends Eurodollar Loans
under Section 4.1, or does not consent to a request to extent the Maturity Date pursuant to Section
2.10(c), or does not consent to any amendment hereto consented to by Required Lenders, then,
provided that no Default or Event of Default has occurred and is continuing at such time, the
Borrower may, at its own expense (such expense to include any transfer fee payable to the Agent
under Section 11.3(b) and any expense pursuant to Section 4) and in its sole discretion, require
such Lender to transfer and assign in whole (but not in part), without recourse (in accordance with
and subject to the terms and conditions of Section 11.3(b)), all of its interests, rights and
obligations under this Credit Agreement to an Eligible Assignee which shall assume such assigned
obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided, that (a) such assignment shall not conflict with any law, rule or regulation or
order of any court or other Governmental Authority and (b) the Borrower or such assignee shall have
paid to the assigning Lender in immediately available funds the principal of and interest accrued
to the date of such payment on the portion of the Loans hereunder held by such assigning Lender and
all other amounts owed to such assigning Lender hereunder, including amounts owed pursuant to
Sections 4.1 through 4.4.

SECTION 5.

CONDITIONS PRECEDENT

     5.1 Closing Conditions.

     The obligation of the Lenders to make its initial Loan hereunder, and the obligation of any
Issuing Lender to issue its initial Letter of Credit hereunder, is subject to the satisfaction (or
waiver) of the following conditions:

     (a) Executed Credit Documents. Receipt by the Agent of duly executed copies of
(i) this Credit Agreement, (ii) the Notes, (iii) the Collateral Documents and (iv) all other
Credit Documents, each in form and substance acceptable to the Lenders.

     (b) Organizational Documents. Receipt by the Agent of the following:

     (i) Partnership Documents. With respect to each Credit Party, a copy
of the partnership agreement of such Credit Party, together with all amendments
thereto

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certified to be true and complete by the appropriate Governmental Authority of
the State of organization of such Credit Party and certified by an Authorized
Officer of such Credit Party to be true and correct as of the Effective Date.

     (ii) Resolutions. Copies of resolutions, as appropriate, approving and
adopting the Credit Documents to which each Credit Party is a party, the
transactions contemplated therein and authorizing execution and delivery thereof and
certified by an Authorized Officer of the Borrower to be in full force and effect as
of the Effective Date.

     (iii) Good Standing. Copies of certificates of good standing,
existence or their equivalent with respect to each Credit Party certified as of a
recent date by the appropriate Governmental Authorities of the State of organization
of such Credit Party.

     (iv) Incumbency. An incumbency certificate certified by an Authorized
Officer of the applicable Credit Parties to be true and correct as of the Effective
Date.

     (c) Opinion of Counsel. Receipt by the Agent of an opinion from legal counsel
to the Credit Parties, addressed to the Agent on behalf of the Lenders and dated as of the
Effective Date, in form and substance satisfactory to the Agent.

     (d) Asset Transfer. Receipt by the Lenders of such information as reasonably
requested regarding the transfer of certain assets from Spectra Energy Corp and certain of
its Subsidiaries and Affiliates to the Parent and certain of its Subsidiaries as of the
Effective Date, including copies of all documentation evidencing such transfer, as described
in the Registration Statement as filed on or prior to the Closing Date, with any material
amendments thereto acceptable to the Lenders (the “Initial Asset Acquisition”).

     (e) IPO. Receipt by the Agent of confirmation that an initial public offering
has been consummated by the Parent as of the Effective Date (or is simultaneously being
consummated by the Parent), on terms described in the Registration Statement as filed on or
prior to the Closing Date, with any material amendments thereto acceptable to the Lenders,
that results in net cash proceeds to the Parent of not less than $150,000,000.

     (f) Financial Statements/Ownership Structure. Receipt by the Lenders of such
financial information or other information regarding the Credit Parties and their assets,
and the ownership of same, as the Lenders may reasonably request, including without
limitation, information regarding the Initial Asset Acquisition.

     (g) Collateral. Receipt of the Agent of (i) Permitted Cash Collateral with a
value of not less than the Required Collateral Amount, calculated after giving effect to the
making of the Term Loan on the Effective Date and (ii) such other documentation and
information as required herein or by the Collateral Documents.

     (h) Fees and Expenses. Payment by the Borrower of all fees and expenses owed
by it to the Lenders, the Agent and the Co-Lead Arrangers, including, without limitation,
payment to the Agent of the fees set forth in the Fee Letter.

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     (i) Litigation; Environmental. As of the Effective Date: (i) there shall be no
actions, suits, investigations or legal, equitable, arbitration or administrative
proceedings pending or threatened against a Credit Party which are likely to be decided
adversely to such Credit Party and if so decided would have a Material Adverse Effect, and
(ii) except as would not reasonably be expected to result in a Material Adverse Effect: (A)
each of the real properties owned or leased by the Credit Parties (the “Properties”)
and all their operations at the Properties are in compliance with all applicable
Environmental Laws, (B) there is no receipt of notice regarding violation of any
Environmental Law with respect to the Properties or the businesses operated by the Credit
Parties (the “Businesses”), and (C) there are no conditions relating to the
Businesses that would reasonably be expected to give rise to a liability under any
applicable Environmental Laws.

     (j) Material Adverse Effect. As of the Effective Date, no event or condition
shall have occurred since December 31, 2006 that would have or would be reasonably expected
to have a Material Adverse Effect.

     (k) Certificate. The Agent shall have received a certificate or certificates
executed by an Approved Officer of the Parent, on behalf of the Credit Parties, as of the
Effective Date stating that (i) each Credit Party is in compliance with all existing
financial obligations, unless such non-compliance would not have a Material Adverse Effect,
(ii) no action, suit, investigation or proceeding is pending or, to such officer’s
knowledge, threatened in any court or before any arbitrator or governmental instrumentality
that purports to affect a Credit Party or any transaction contemplated by the Credit
Documents, if such action, suit, investigation or proceeding is likely to be adversely
determined and if adversely determined would be reasonably expected to have a Material
Adverse Effect, (iii) the financial statements and information delivered to the Agent on or
before the Closing Date were prepared in good faith and in accordance with GAAP and present
fairly in all material respects on a pro forma basis the financial condition, results of
operations and cash flows of the Parent and its Subsidiaries as of such date and for such
period, with a calculation of the Consolidated Leverage Ratio, based upon Parent’s pro forma
financial statements as of March 31, 2007 delivered pursuant to Section 5.1(f) hereof, after
giving effect to the Initial Asset Acquisition, the IPO and the initial Loans hereunder, and
identifying the Cash Collateral Account by name and account number, (iv) all consents and
approvals of board of directors, equity holders, general partners, Governmental Authorities
and third parties necessary in connection with the Initial Asset Acquisition, the IPO and
the Credit Documents have been obtained, and (v) immediately after giving effect to this
Credit Agreement, the other Credit Documents and all the transactions contemplated herein
and therein to occur on such date, (A) no Default or Event of Default exists and (B) all
representations and warranties contained herein and in the other Credit Documents are true
and correct in all material respects on and as of the date made.

     (l) Patriot Act. Receipt by the Agent on behalf of each Lender at least five
(5) Business Days prior to the Effective Date of all documentation and other information
requested by any Lender in order to comply with the requirements of regulatory authorities
under applicable “know your customer” and anti-money laundering rules and regulations.

     (m) Account Designation Letter. Receipt by the Agent of an executed
counterpart of the Account Designation Letter.

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     (n) Other. Receipt by the Lenders of such other documents, instruments,
agreements or information as reasonably requested by any Lender.

     (l) Minimum Commitments. The aggregate amount of Commitments of all Lenders on
the Closing Date shall be not less than $500,000,000.

     5.2 Conditions to Loans and Issuances of Letters of Credit.

     In addition to the conditions precedent stated elsewhere herein, the Lenders shall not be
obligated to make new Loans nor shall an Issuing Lender be required to issue, renew or extend a
Letter of Credit (and the Lenders shall not be obligated to participate in any Letter of Credit)
unless:

     (a) Request. The Borrower shall have timely delivered (i) in the case of any
new Revolving Loan or Term Loan, to the Agent, an appropriate Notice of Borrowing, duly
executed and completed, by the time specified in Section 2.1, (ii) in the case of any Letter
of Credit, to the applicable Issuing Lender, an appropriate request for issuance of a Letter
of Credit in accordance with the provisions of Section 2.2 and (iii) in the case of any
Swingline Loan, to the Swingline Lender, an appropriate Notice of Borrowing, duly executed
and completed, by the time specified in Section 2.8.

     (b) Representations and Warranties. The representations and warranties made by
the Credit Parties in this Credit Agreement (other than as set forth in Section 6.12 and
6.14 hereof) are true and correct in all material respects at and as if made as of the date
of the funding of the Loans or the issuance, renewal or extension of the Letters of Credit,
as applicable (except to the extent such representations and warranties expressly and
exclusively relate to an earlier date).

     (c) No Default. No Default or Event of Default shall exist or be continuing
either prior to or after giving effect thereto.

     (d) Availability. Immediately after giving effect to the making of a Loan (and
the application of the proceeds thereof) or to the issuance of a Letter of Credit, as the
case may be, the amount of Loans and LOC Obligations outstanding shall not exceed the
maximum permitted by Sections 2.1, 2.2 and 2.8.

     (e) Cash Collateral. In the case of any new Term Loan, the Borrower shall have
deposited into the Cash Collateral Account sufficient Permitted Cash Collateral so that,
after giving effect to the making of such Term Loan, the value of all Permitted Cash
Collateral maintained in the Cash Collateral Account is not less than the Required
Collateral Amount.

     The delivery of each Notice of Borrowing and each request for a Letter of Credit shall
constitute a representation and warranty by the Borrower of the correctness of the matters
specified in subsections (b), (c) and (d) above.

SECTION 6.

REPRESENTATIONS AND WARRANTIES

     Each Credit Party hereby represents and warrants to each Lender that:

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     6.1 Organization and Good Standing.

     Each Credit Party (a) is a limited partnership, limited liability company or a corporation
duly formed, validly existing and in good standing under the laws of the state of its formation,
(b) is duly qualified and in good standing and authorized to do business in every jurisdiction
where the failure to so qualify would have a Material Adverse Effect and (c) has the requisite
power and authority to own its properties and to carry on its business as now conducted and as
proposed to be conducted.

     6.2 Due Authorization.

     Each Credit Party (a) has the requisite power and authority to execute, deliver and perform
this Credit Agreement and the other Credit Documents and to incur the obligations herein and
therein provided for and (b) has been authorized by all necessary corporate, partnership or limited
liability company action to execute, deliver and perform this Credit Agreement and the other Credit
Documents.

     6.3 No Conflicts.

     Neither the execution and delivery of the Credit Documents, nor the consummation of the
transactions contemplated herein and therein, nor performance of and compliance with the terms and
provisions hereof and thereof by any Credit Party will (a) violate or conflict with any provision
of its organizational documents or bylaws, (b) violate, contravene or conflict with any law,
regulation (including without limitation, Regulation U or Regulation X), order, writ, judgment,
injunction, decree or permit applicable to it, except as would not be reasonably expected to
adversely affect any Credit Party’s ability to timely pay or perform the Obligations, or the
validity or enforceability of the material terms of any Credit Document, (c) violate, contravene or
conflict with contractual provisions of, or cause an event of default under, any indenture, loan
agreement, mortgage, deed of trust, contract or other agreement or instrument to which it is a
party or by which it may be bound, except as would not be reasonably to have a Material Adverse
Effect, or (d) result in or require the creation of any Lien upon or with respect to its properties
other than the Liens hereunder and under the Collateral Documents.

     6.4 Consents.

     No consent, approval, authorization or order of, or filing, registration or qualification
with, any court or Governmental Authority or third party is required in connection with the
execution, delivery or performance of this Credit Agreement or any of the other Credit Documents
that has not been obtained, except as would not be reasonably expected to adversely affect any
Credit Party’s ability to timely pay or perform the Obligations, or the validity or enforceability
of the material terms of any Credit Document.

     6.5 Enforceable Obligations.

     This Credit Agreement and the other Credit Documents have been duly executed and delivered and
constitute legal, valid and binding obligations of each Credit Party which is a party thereto
enforceable against such Credit Party in accordance with their respective terms, except as may be
limited by bankruptcy or insolvency laws or similar laws affecting creditors’ rights generally or
by general equitable principles.

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     6.6 Financial Condition/Material Adverse Effect.

     The financial statements delivered to the Lenders pursuant to Section 7.1(a) and (b): (i)
have been prepared in accordance with GAAP (subject to the provisions of Section 1.3) and (ii)
present fairly in all material respects the financial condition, results of operations and cash
flows of the Parent and its Subsidiaries as of such date and for such periods (subject, in the case
of interim statements, to normal year-end adjustments and the absence of footnotes). Since the
Effective Date, there has been no event or circumstance that, either individually or collectively,
has had or would reasonably be expected to have a Material Adverse Effect; provided that,
on and after the Investment Grade Rating Date, Credit Parties make no further representation or
warranty with respect to the foregoing.

     6.7 Taxes.

     Each Credit Party and each of its Subsidiaries has filed, or caused to be filed, all material
tax returns (federal, state, local and foreign) required to be filed and paid all amounts of taxes
shown thereon to be due (including interest and penalties) and has paid all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes, documentary stamp
taxes and intangibles taxes) owing by it, except (a) for such taxes which are not yet delinquent or
that are being contested in good faith and by proper proceedings, and against which adequate
reserves are being maintained in accordance with GAAP or (b) where such nonfiling or nonpayment
would not have a Material Adverse Effect.

     6.8 Compliance with Law.

     Each Credit Party and each of its Subsidiaries is in compliance with all laws, rules,
regulations, orders, decrees and requirements of Governmental Authorities applicable to it or to
its properties (including, without limitation, ERISA, the Code and Environmental Laws), except
where the necessity of compliance therewith is being contested in good faith by appropriate
proceedings or such failure to comply would not have or would not be reasonably expected to have a
Material Adverse Effect.

     6.9 Use of Proceeds; Margin Stock.

     The proceeds of the Loans hereunder will be used solely for the purposes specified in Section
7.7. None of such proceeds will be used for the purpose of (a) purchasing or carrying any “margin
stock” as defined in Regulation U or Regulation X, (b) for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry “margin stock”, (c) for any other
purpose which might constitute this transaction a “purpose credit” within the meaning of Regulation
U or Regulation X or (d) for the acquisition of another Person unless the board of directors (or
other comparable governing body) or stockholders, as appropriate, of such Person has approved such
acquisition.

     6.10 Government Regulation.

     No Credit Party is an “investment company” registered or required to be registered under the
Investment Company Act of 1940, as amended, or controlled by such a company.

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     6.11 Solvency.

     Each Credit Party is and, after the consummation of the transactions contemplated by this
Credit Agreement, will be Solvent.

     6.12 Environmental Matters.

     Except as would not reasonably be expected to result in a Material Adverse Effect: (a) each
of the real properties owned or leased by the Credit Parties (the “Properties”) and all
their operations at the Properties are in compliance with all applicable Environmental Laws, (b)
there is no receipt of notice regarding violation of any Environmental Law with respect to the
Properties or the businesses operated by the Credit Parties (the “Businesses”), and (c)
there are no conditions relating to the Businesses that would reasonably be expected to give rise
to a liability under any applicable Environmental Laws.

     6.13 Subsidiaries.

     Set forth on Schedule 6.13 is a complete and accurate list of all Credit Parties and
their Subsidiaries, and the ownership of same; as annually updated by the list of subsidiaries
filed as an exhibit to Parent’s annual report on Form 10-K filed with the Securities and Exchange
Commission.

     6.14 Litigation.

     There are no actions, suits or legal, equitable, arbitration or administrative proceedings,
pending or, to the knowledge of a Credit Party, threatened against such Credit Party which (a) are
reasonably likely to be decided adversely against such Credit Party and (b) if so decided would
reasonably be expected to have a Material Adverse Effect.

     6.15 Collateral.

     This Credit Agreement and the Collateral Documents create valid security interests in, and
Liens on, the Cash Collateral, which security interests and Liens are perfected first priority
Liens prior to all other Liens. The value of the Permitted Cash Collateral is greater than or
equal to the Required Collateral Amount.

     6.16 Material Contracts.

     Each Credit Party and each of its Subsidiaries is in compliance with all contracts necessary
for the ongoing operation and business of such Credit Party or Subsidiary in the ordinary course
except where the failure to comply would not reasonably be expected to have a Material Adverse
Effect.

     6.17 Anti-Terrorism Laws.

     Neither any Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy”
within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America
(50 U.S.C. App. §§ 1 et seq.), as amended. Neither any Credit Party nor any or its Subsidiaries is
in violation of (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B,

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Chapter V, as
amended) or any enabling legislation or executive order relating thereto or (c) the
Patriot Act (as defined in Section 11.17(b)). None of the Credit Parties (i) is a blocked person
described in section 1 of the Anti-Terrorism Order or (ii) to the best of its knowledge, engages in
any dealings or transactions, or is otherwise associated, with any such blocked person.

     6.18 Compliance with OFAC Rules and Regulations.

     None of the Credit Parties or their Subsidiaries or their respective Affiliates (a) is a
Sanctioned Person, (b) has more than 15% of its assets in Sanctioned Countries, or (c) derives more
than 15% of its operating income from investments in, or transactions with Sanctioned Persons or
Sanctioned Countries. No part of the proceeds of any Extension of Credit hereunder will be used
directly or indirectly to fund any operations in, finance any investments or activities in or make
any payments to, a Sanctioned Person or a Sanctioned Country.

     6.19 Compliance with FCPA.

     Each of the Credit Parties and their Subsidiaries is in compliance with the Foreign Corrupt
Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto. None of the
Credit Parties and their Subsidiaries has made a payment, offering, or promise to pay, or
authorized the payment of, money or anything of value (a) in order to assist in obtaining or
retaining business for or with, or directing business to, any foreign official, foreign political
party, party official or candidate for foreign political office, (b) to a foreign official, foreign
political party or party official or any candidate for foreign political office, and (c) with the
intent to induce the recipient to misuse his or her official position to direct business wrongfully
to such Credit Party or its Subsidiary or to any other Person, in violation of the Foreign Corrupt
Practices Act, 15 U.S.C. §§ 78dd-1, et seq.

SECTION 7.

AFFIRMATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that so long as this Credit Agreement is in
effect and until the Loans and LOC Obligations, together with interest, fees and other obligations
hereunder, have been paid in full and the Commitments and Letters of Credit shall have terminated:

     7.1 Information Covenants.

     The Borrower will furnish, or cause to be furnished, to the Agent for further distribution to
each Lender:

     (a) Annual Financial Statements. As soon as available, and in any event within
95 days after the close of each fiscal year of the Parent, a consolidated balance sheet of
the Parent as of the end of such fiscal year, together with a related consolidated income
statement and related statements of cash flows, capitalization and retained earnings for
such fiscal year, setting forth in comparative form figures for the preceding fiscal year,
all such financial information described above to be audited by independent certified public
accountants of recognized national standing and whose opinion, which shall be furnished to
the Agent, shall be to the effect that such financial statements have been prepared in
accordance with GAAP (except for changes with which such accountants concur);
provided,

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that the Parent’s Form 10-K Annual Report as filed with the Securities and Exchange
Commission, without exhibits, will satisfy the requirements of this Section 7.1(a).

     (b) Quarterly Financial Statements. As soon as available, and in any event
within 50 days after the close of each fiscal quarter of the Parent a consolidated balance
sheet of the Parent as of the end of such fiscal quarter, together with a related
consolidated income statement and related statement of cash flows for such fiscal quarter in
each case setting forth in comparative form figures for the corresponding period of the
preceding fiscal year, and accompanied by a certificate of an Approved Officer of the Parent
to the effect that such quarterly financial statements fairly present in all material
respects the financial condition of the Parent and its Subsidiaries and have been prepared
in accordance with GAAP, subject to changes resulting from audit and normal year-end audit
adjustments to same; provided, that the Parent’s Form 10-Q Quarterly Report as filed
with the Securities and Exchange Commission, without exhibits, will satisfy the requirements
of this Section 7.1(b).

     (c) Officer’s Certificate. At the time of delivery of the financial statements
provided for in Sections 7.1(a) and 7.1(b) above, a certificate of an Approved Officer of
the Parent, substantially in the Form of Exhibit 7.1(c), (i) demonstrating
compliance with the financial covenants contained in Section 7.10 by calculation thereof as
of the end of each such fiscal period, beginning with the fiscal quarter ending September
30, 2007, (ii) stating that no Default or Event of Default exists, or if any Default or
Event of Default does exist, specifying the nature and extent thereof and what action the
Parent or the Borrower proposes to take with respect thereto, (iii) setting forth the amount
of Off Balance Sheet Indebtedness of the Parent and its Subsidiaries as of the end of each
such fiscal period, (iv) providing information to evidence compliance with Sections 8.2(m),
8.2(q), 8.4(i), 8.6(j), 8.7(h) and 8.7(i), and (v) providing such other information to
evidence compliance with this Credit Agreement as reasonably requested by the Agent.

     (d) Reports. Promptly upon transmission or receipt thereof, copies of any
material filings and registrations with, and reports to or from, the Securities and Exchange
Commission, or any successor agency.

     (e) Notices. Within five Business Days after any officer of a Credit Party
with responsibility relating thereto obtaining knowledge thereof, such Credit Party will
give written notice to the Agent immediately of (i) the occurrence of a Default or Event of
Default, specifying the nature and existence thereof and what action such Credit Party
proposes to take with respect thereto, and (ii) the occurrence of any of the following with
respect to a Credit Party: (A) the pendency or commencement of any litigation, arbitral or
governmental proceeding against such Credit Party the claim of which is likely to be decided
adversely to such Credit Party and, if adversely determined, would be reasonably expected to
have a Material Adverse Effect or (B) written notice of the institution of any proceedings
against such Credit Party with respect to, or the receipt of written notice by such Person
of potential liability or responsibility for violation or alleged violation of, any federal,
state or local law, rule or regulation (including, without limitation, any Environmental
Law) that is likely to be decided adversely to such Credit Party and, if adversely decided,
would be reasonably be expected to have a Material Adverse Effect.

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     (f) ERISA. Upon a Credit Party or any ERISA Affiliate obtaining knowledge
thereof, such Credit Party will give written notice to the Agent promptly (and in any event
within five Business Days) of: (i) any event or condition, including, but not limited to,
any Reportable Event, that constitutes, or would be reasonably expected to lead to, a
Termination Event if such Termination Event would have a Material Adverse Effect; (ii) with
respect to any Multiemployer Plan, the receipt of notice as prescribed in ERISA or otherwise
of any withdrawal liability assessed against a Credit Party or any ERISA Affiliate, or of a
determination that any Multiemployer Plan is in reorganization or insolvent (both within the
meaning of Title IV of ERISA); (iii) the failure to make full payment on or before the due
date (including extensions) thereof of all amounts which a Credit Party or any of its
Subsidiaries or ERISA Affiliates is required to contribute to each Plan pursuant to its
terms and as required to meet the minimum funding standard set forth in ERISA and the Code
with respect thereto; or (iv) any change in the funding status of any Plan that would have
or would be reasonably expected to have a Material Adverse Effect; together, with a
description of any such event or condition or a copy of any such notice and a statement by
an officer of a Credit Party briefly setting forth the details regarding such event,
condition, or notice, and the action, if any, which has been or is being taken or is
proposed to be taken with respect thereto. Promptly upon request, a Credit Party shall
furnish the Agent and each of the Lenders with such additional information concerning any
Plan as may be reasonably requested, including, but not limited to, copies of each annual
report/return (Form 5500 series), as well as all schedules and attachments thereto required
to be filed with the Department of Labor and/or the Internal Revenue Service pursuant to
ERISA and the Code, respectively, for each “plan year” (within the meaning of Section 3(39)
of ERISA).

     (g) Debt Rating Changes. Upon any change in its Debt Rating, the Parent or the
Borrower shall promptly deliver such information to the Agent.

     (h) Other Information. With reasonable promptness upon any such request, such
other information regarding the business, properties or financial condition of the Credit
Parties and their Subsidiaries as the Agent or any Lender may reasonably request.

     Information required to be delivered pursuant to Sections 7.1(a) and 7.1(b) shall be deemed to
have been delivered on the date on which a Credit Party provides notice to the Agent that such
information has been posted on the Securities and Exchange Commission website on the Internet at
ww.sec.gov/edgar/searchedgar/webusers.htm (“EDGAR”)or at another website identified in such
notice and accessible by the Agent without charge (which notice may be included in a certificate
delivered pursuant to Section 7.1(c)). Information required to be delivered pursuant to Section
7.1(c) shall be deemed to have been delivered on the date delivered to the Agent. Information
required to be delivered pursuant to Section 7.1(d) shall be deemed to have been delivered on the
date such information has been posted on EDGAR. Agent shall promptly post information delivered
pursuant to Section 7.1(a), (b) and (c) on behalf of the Credit Parties to the Lenders on
IntraLinks, Syndtrak or other electronic medium chosen by the Agent.

     7.2 Preservation of Existence and Franchises.

     Each Credit Party will, and will cause each Subsidiary to, do all things necessary to preserve
and keep in full force and effect its existence and rights, franchises and authority;
provided, however, that, subject to Section 8.3, a Credit Party shall not be required to
preserve any such

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existence, right or franchise if it in good faith determines that preservation
thereof is no longer
necessary or desirable in the conduct of its business and that the loss thereof is not
disadvantageous in any material respect to the Lenders.

     7.3 Books and Records.

     Each Credit Party will keep, and will cause each of its Subsidiaries to keep, complete and
accurate books and records of its transactions in accordance with good accounting practices on the
basis of GAAP (including the establishment and maintenance of appropriate reserves).

     7.4 Compliance with Law.

     Each Credit Party will comply, and will cause each of its Subsidiaries to comply, with all
laws (including, without limitation, all Environmental Laws and ERISA laws), rules, regulations and
orders, and all applicable restrictions imposed by all Governmental Authorities, applicable to it
and its property, unless (a) the failure to comply would not reasonably be expected to have a
Material Adverse Effect or (b) the necessity of compliance therewith is being contested in good
faith by appropriate proceedings.

     7.5 Payment of Taxes and Other Indebtedness.

     Each Credit Party will, and will cause each of its Subsidiaries to, pay, settle or discharge
(a) all taxes, assessments and governmental charges or levies imposed upon it, or upon its income
or profits, or upon any of its properties, before they shall become delinquent, (b) all lawful
claims (including claims for labor, materials and supplies) which, if unpaid, might give rise to a
Lien upon any of its properties, and (c) all of its other Indebtedness as it shall become due;
provided, however, that a Credit Party shall not be required to pay any such tax,
assessment, charge, levy, claim or Indebtedness which (i) is being contested in good faith by
appropriate proceedings and as to which adequate reserves therefor have been established in
accordance with GAAP or (ii) the nonpayment of which would not have a Material Adverse Effect.

     7.6 Maintenance of Property; Insurance.

     (a) Each Credit Party will keep, and will cause each of its Subsidiaries to keep, all
property useful and necessary in its business in good working order and condition, ordinary
wear and tear excepted.

     (b) Each Credit Party will, and will cause each of its Subsidiaries to, maintain
(either in the name of such Credit Party or in such Subsidiary’s own name) with financially
sound and responsible insurance companies, insurance on all their respective properties in
at least such amounts and against at least such risks (and with such self-insurance and risk
retention where commercially reasonable) as are usually insured against by companies of
established repute engaged in the same or a similar business; provided, that this
Section 7.6 shall be satisfied by the use of self-insurance by a Credit Party or any such
Subsidiary to the extent commercially reasonable for such Credit Party or such Subsidiary .

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     7.7 Use of Proceeds.

     The proceeds of the Revolving Loans may be used solely (a) to make cash distributions to
Spectra Energy Corp and its subsidiaries on the Effective Date in connection with the Initial Asset
Acquisition and (b) for working capital, permitted acquisitions, capital expenditures and
other general corporate purposes of the Credit Parties. The proceeds of the initial Term Loans
shall be used to make cash distributions to the Parent as described in the Registration Statement.
The proceeds of the Swingline Loans may be used solely for working capital and other general
corporate purposes of the Credit Parties. The Borrower will use the Letters of Credit solely for
the purposes set forth in Section 2.2(a).

     7.8 Inspections.

     Each Credit Party will, and will cause each of its Subsidiaries to, permit any representatives
designated by the Agent or the Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine 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.

     7.9 Maintenance of Ownership.

     Each Credit Party will maintain ownership of all Capital Stock of each Subsidiary that is a
Credit Party, directly or indirectly, free and clear of all Liens except as permitted by Section
8.3 and Section 8.4.

     7.10 Financial Covenants.

     (a) Consolidated Leverage Ratio. The Consolidated Leverage Ratio, as at the
end of each fiscal quarter of the Parent (beginning with the fiscal quarter ending September
30, 2007), shall be less than or equal to 5.00 to 1.0; provided that subsequent to the
consummation of a Qualified Acquisition, the Consolidated Leverage Ratio, as at the end of
the three consecutive fiscal quarters following such Qualified Acquisition, shall be less
than or equal to 5.50 to 1.0.

     (b) Consolidated Interest Coverage Ratio. The Consolidated Interest Coverage
Ratio, as at the end of each fiscal quarter of the Parent (beginning with the fiscal quarter
ending September 30, 2007), shall prior to the Investment Grade Rating Date, be greater than
or equal to 2.50 to 1.0.

     For purposes of calculating compliance with the financial covenants set forth in this
Section 7.10:

     (i) with respect to the Initial Asset Acquisition, Consolidated EBITDA and
Consolidated Interest Expense shall, for the first twelve months subsequent to the
Effective Date, be calculated on an annualized 365 day basis for the number of days
actually elapsed since the Effective Date until the date of determination; and

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     (ii) with respect to all Permitted Acquisitions subsequent to the Effective
Date, Consolidated EBITDA and Consolidated Interest Expense with respect to such
newly acquired assets shall be calculated on a pro forma basis as if such
acquisition had occurred at the beginning of the applicable twelve month period of
determination; provided, that with respect to all Permitted Acquisitions
with limited or no prior operating history (or with a prior operating history
that does not reliably indicate future operating results), Consolidated EBITDA shall
be deemed to be the amount approved by the Agent as the projected Consolidated
EBITDA of the Parent and its Subsidiaries attributable to such Permitted Acquisition
for the first twelve-month period following such Permitted Acquisition (such amount
to be determined based on customer contracts relating to such Permitted Acquisition,
the creditworthiness of the other parties to such contracts, and projected revenues
from such contracts, capital costs and expenses, oil and gas reserve and production
estimates, commodity price assumptions and other reasonable factors deemed
appropriate by Agent).

     (iii) Consolidated EBITDA may include, at Parent’s option, any Qualified
Project EBITDA Adjustments as provided in the definition thereof.

     7.11 Material Contracts.

          Each Credit Party will comply, and will cause its Subsidiaries to comply, with all contracts
necessary for the ongoing operation and business of such Credit Party or Subsidiary in the ordinary
course, except where the failure to comply would not have or would not reasonably be expected to
have a Material Adverse Effect.

     7.12 Reserved.

     7.13 Cash Collateral.

     (a) The Borrower shall maintain the Cash Collateral Account at all times that any
portion of the Term Loans shall remain outstanding.

     (b) The Borrower shall, at all times, maintain Permitted Cash Collateral in the Cash
Collateral Account with a value greater than or equal to the following (the “Required
Collateral Amount”): (i) if all Permitted Cash Collateral is comprised entirely of Tier
1 Permitted Cash Collateral, 100.25% of the principal amount of all outstanding Term Loans,
(ii) if Permitted Cash Collateral is not comprised entirely of Tier 1 Permitted Cash
Collateral but is not composed of any Tier 3 Permitted Cash Collateral, 100.5% of the
principal amount of all outstanding Term Loans or (iii) if any Permitted Cash Collateral is
comprised of any Tier 3 Permitted Cash Collateral, 101% of the principal amount of all
outstanding Term Loans. If, at any time, the Required Collateral Amount exceeds the value
of the Permitted Cash Collateral, the Borrower shall immediately deposit additional
Permitted Cash Collateral into the Cash Collateral Account to eliminate such excess. In
accordance with the terms of the Account Control Agreement, the Borrower shall direct the
investment of items deposited into the Cash Collateral Account; provided, that (1)
all Cash Collateral shall consist of Permitted Cash Collateral at all times and (2) the
Borrower shall not be permitted to sell any Permitted

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Cash Collateral prior to its stated
maturity (if any) during the first two months following the Closing Date except pursuant to
Section 7.13(c). The Borrower shall treat all income, gains or losses from the investment
of items in the Cash Collateral Account as its own income or loss, and the Agent and the
Lenders shall have no liability for any such gain or loss.

     (c) The Borrower shall be permitted to liquidate and/or withdraw Cash Collateral from
the Cash Collateral Account to fund a Permitted Acquisition or capital expenditure;
provided, that concurrently with such liquidation or withdrawal (i) the Revolving
Committed Amount shall be automatically increased (without the consent of the Lenders), (ii)
a Revolving Loan shall be made to the Borrower, (iii) the proceeds of such Revolving Loan
shall be applied to prepay the principal amount of the Term Loans in an amount equal to the
amount of Cash Collateral liquidated or withdrawn, and (iv) after such liquidation or
withdrawal, the value of the Permitted Cash Collateral shall be greater than or equal to the
Required Collateral Amount, as calculated after giving effect of such prepayment of the Term
Loans. In the event that the Borrower shall elect to make such a withdrawal, the Agent
shall direct the Intermediary to liquidate the applicable Cash Collateral and remit the
proceeds to the Borrower.

     (d) If, at the end of any fiscal quarter of the Parent, the value of the Permitted Cash
Collateral exceeds the Required Collateral Amount, then, upon the request of the Borrower,
provided no Default or Event of Default has occurred and is continuing, the Agent shall
direct the Intermediary to pay and transfer to the Borrower cash, to the extent available,
in the Cash Collateral Account in an amount equal to such excess.

     (e) To secure the prompt payment in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Term Loans, the Borrower hereby
grants to the Agent, for the ratable benefit of the Lenders, a continuing security interest
in, and a right to set off against, any and all right, title and interest of the Borrower in
and to the Cash Collateral Account and the Cash Collateral and all other amounts maintained
in the Cash Collateral Account.

SECTION 8.

NEGATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that so long as this Credit Agreement is in
effect and until the Loans and LOC Obligations, together with interest, fees and other obligations
hereunder, have been paid in full and the Commitments and Letters of Credit shall have terminated:

     8.1 Nature of Business.

     No Credit Party will, nor will it permit any of its Subsidiaries to (whether now owned or
acquired or formed subsequent to the Closing Date), materially alter the character of their
business on a consolidated basis from the midstream energy business.

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     8.2. Liens.

     No Credit Party will create, assume or suffer to exist any Lien on any asset now owned or
hereafter acquired by it or any of its Subsidiaries, except for the following:

     (a) Liens in favor of the Lenders securing Indebtedness under this Credit Agreement;

     (b) any Lien arising out of the refinancing, extension, renewal or refunding of any
Indebtedness secured by any Lien permitted by this Section 8.2; provided, that the
principal amount of such Indebtedness is not increased (other than to provide for the
payment of any underwriting discounts and fees related to any refinancing Indebtedness as
well as any premiums owed on and accrued and unpaid interest related to the original
Indebtedness) and is not secured by any additional assets;.

     (c) Liens for taxes, assessments or other governmental charges or levies not yet due or
which are being contested in good faith by appropriate proceedings and with respect to which
adequate reserves or other appropriate provisions are being maintained in accordance with
GAAP;

     (d) Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and
interest owners of oil and gas production and other Liens imposed by law, created in the
ordinary course of business and for amounts not past due for more than 60 days or which are
being contested in good faith by appropriate proceedings which are sufficient to prevent
imminent foreclosure of such Liens, are promptly instituted and diligently conducted and
with respect to which adequate reserves or other appropriate provisions are being maintained
in accordance with GAAP;

     (e) Liens incurred or deposits made in the ordinary course of business (including,
without limitation, surety bonds and appeal bonds) in connection with workers’ compensation,
unemployment insurance and other types of social security benefits or to secure the
performance of tenders, bids, leases, contracts (other than for the repayment of
Indebtedness), statutory obligations and other similar obligations or arising as a result of
progress payments under government contracts;

     (f) easements (including, without limitation, reciprocal easement agreements and
utility agreements), rights-of-way, covenants, consents, reservations, encroachments,
variations and other restrictions, charges or encumbrances (whether or not recorded)
affecting the use of real property of any Credit Party or any Subsidiary;

     (g) Liens with respect to judgments and attachments which do not result in an Event of
Default;

     (h) Liens, deposits or pledges to secure the performance of bids, tenders, contracts
(other than contracts for the payment of money), leases (permitted under the terms of this
Agreement), public or statutory obligations, surety, stay, appeal, indemnity, performance or
other obligations arising in the ordinary course of business;

     (i) rights of first refusal entered into in the ordinary course of business;

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     (j) Liens consisting of any (i) rights reserved to or vested in any municipality or
governmental, statutory or public authority to control or regulate any property of a Credit
Party or any Subsidiary or to use such property in any manner which does not materially
impair the use of such property for the purpose for which it is held by a Credit Party or
any such Subsidiary, (ii) obligations or duties to any municipality or public authority with
respect to any franchise, grant, license, lease or permit and the rights reserved or vested
in any Governmental Authority or public utility to terminate any such franchise, grant,
license,
lease or permit or to condemn or expropriate any property, or (iii) zoning laws,
ordinances or municipal regulations;

     (k) the reservation in any original grants from the sovereign of any land in Canada or
interests therein and statutory exceptions to title;

     (l) Liens on deposits required by any Person with whom a Credit Party or any Subsidiary
enters into forward contracts, futures contracts, swap agreements or other commodities
contracts in the ordinary course of business;

     (m) other Liens, including Liens imposed by Environmental Laws, arising in the ordinary
course of its business which (i) do not secure Indebtedness (other than Liens on cash and
cash equivalents that secure letters of credit), (ii) do not secure any obligation in an
amount exceeding $25,000,000 at any time and (iii) do not in the aggregate materially
detract from the value of its assets or materially impair the use thereof in the operation
of its business;

     (n) any letter of credit issued for the account of any Credit Party, Spectra Energy
Corp or any of their Affiliates to secure Indebtedness under tax free financings;

     (o) any Lien on any asset of any Person existing at the time such Person is merged or
consolidated with or into the Borrower, the Parent or any Subsidiary and not created in
contemplation of such event;

     (p) any Lien existing on any asset prior to the acquisition thereof by the Borrower,
the Parent or any Subsidiary and not created in contemplation of such acquisition; and

     (q) other Liens securing Indebtedness or obligations in an amount not to exceed, in the
aggregate, at any one time 10% of Consolidated Tangible Net Assets; provided, for
purposes of this Section 8.2(q), with respect to any such secured Indebtedness of a
non-wholly-owned Subsidiary of the Parent or Borrower with no recourse to any Credit Party
or any wholly-owned Subsidiary thereof, only that portion of such Indebtedness reflecting
Parent’s pro rata ownership interest therein shall be included in calculating compliance
herewith.

     8.3 Consolidation and Merger.

     A Credit Party will not, and will not permit any of its Subsidiaries to, (a) enter into any
transaction of merger or (b) consolidate, liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution); provided, that: (i) a Person (including a Subsidiary of the
Borrower) may be merged or consolidated with or into the Borrower or the Parent so long as (A) the
Borrower

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or the Parent, as the case may be, shall be the continuing or surviving entity, (B) no
Default or Event of Default shall exist or be caused thereby, and (C) the Borrower remains liable
for its obligations under this Credit Agreement and all the rights and remedies hereunder remain in
full force and effect, (ii) a Subsidiary of the Parent may merge with or into another Subsidiary of
the Parent; provided that if one of such Subsidiaries is a Credit Party, the surviving entity must
be a Credit Party, and (iii) any such merger, consolidation, liquidation, winding up or dissolution
in connection with any Disposition permitted under Section 8.4 hereof shall be permitted
hereunder.

     8.4 Dispositions.

     A Credit Party will not make, nor permit its Subsidiaries to make any Disposition except:

     (a) Dispositions of inventory in the ordinary course of business;

     (b) Dispositions of machinery and equipment no longer used or useful in the conduct of
business of a Credit Party and its Subsidiaries that are Disposed of in the ordinary course
of business;

     (c) Dispositions of assets to a Credit Party;

     (d) Dispositions of Investments permitted under Section 8.7;

     (e) Dispositions of accounts receivable in connection with the collection or compromise
thereof;

     (f) Dispositions of licenses, sublicenses, leases or subleases granted to others not
interfering in any material respect with the business of a Credit Party and its
Subsidiaries;

     (g) Dispositions of Cash Equivalents for fair market value;

     (h) Dispositions in which: (i) the assets being disposed are used simultaneously in
exchange for replacement assets or (ii) the net proceeds thereof are either (A) reinvested
within 180 days from such Disposition in assets to be used in the ordinary course of the
business of the Parent and its Subsidiaries and/or (B) used to permanently reduce the
Revolving Committed Amount on a dollar for dollar basis; or

     (i) other Dispositions not exceeding in the aggregate for all Credit Parties and their
Subsidiaries (i) 10% of Consolidated Net Tangible Assets in any fiscal year measured as of
the date of determination and (ii) 25% of Consolidated Net Tangible Assets during the term
of this Credit Agreement.

     8.5 Transactions with Affiliates.

     A Credit Party will not, and will not permit any Subsidiary to, directly or indirectly, pay
any funds to or for the account of, make any investment in, lease, sell, transfer or otherwise
dispose of any assets, tangible or intangible, to, or participate in, or effect, any transaction
with, any officer, director, employee or

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Affiliate (other than another Credit Party) unless any and
all such transactions between a Credit Party and its Subsidiaries on the one hand and any officer,
director, employee or Affiliate (other than another Credit Party) on the other hand, shall be on an
arms-length basis and on terms no less favorable to such Credit Party or such Subsidiary than could
have been obtained from a third party who was not an officer, director, employee or Affiliate
(other than another Credit Party) as determined by the Board of Directors of the general partner of
the Parent; provided, that the foregoing provisions of this Section shall not (a) prohibit
a Credit Party and each Subsidiary from declaring or paying any lawful dividend or distribution
otherwise permitted hereunder, (b) prohibit a Credit Party or a Subsidiary from providing credit
support for its Subsidiaries as it deems appropriate in the ordinary course of business, (c)
prohibit a Credit Party or a Subsidiary
from engaging in a transaction or transactions that are not on an arms-length basis or are not
on terms as favorable as could have been obtained from a third party, provided that such
transaction or transactions occurs within a related series of transactions, which, in the
aggregate, are on an arms-length basis and are on terms as favorable as could have been obtained
from a third party as determined by the Board of Directors of the general partner of the Parent,
(d) prohibit a Credit Party or a Subsidiary from engaging in non-material transactions with any
Credit Party that are not on an arms-length basis or are not on terms as favorable as could have
been obtained from a third party but are in the ordinary course of such Credit Party’s or such
Subsidiary’s business, so long as, in each case, after giving effect thereto, no Default or Event
of Default shall have occurred and be continuing, (e) prohibit a Credit Party from entering into
any of the agreements to be entered into by various Credit Parties in connection with the Initial
Asset Acquisition and the transactions related thereto, (f) prohibit a Credit Party from engaging
in a transaction with an Affiliate if such transaction has been approved by the Conflicts
Committee, (g) prohibit a Credit Party from entering into any of the agreements listed on
Schedule 8.5, or (h) prohibit a Credit Party or a Subsidiary from compensating its
employees and officers in the ordinary course of business.

     8.6 Indebtedness.

     Prior to the Investment Grade Rating Date, no Credit Party will, nor will it permit its
Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness under the Credit Documents;

     (b) Investments permitted under Section 8.7 that would constitute Indebtedness;

     (c) obligations (contingent or otherwise) of a Credit Party or any Subsidiary existing
or arising under (i) any Credit Facility Swap Contract or (ii) any other Swap Contract;
provided that with respect to clauses (i) and (ii) above (A) such obligations are
(or were) entered into by such Person in the ordinary course of business for the purpose of
directly mitigating risks associated with liabilities, commitments, investments, assets, or
property held or reasonably anticipated by such Person, or changes in the value of
securities issued by such Person, and not for purposes of speculation or taking a “market
view” and (B) such Credit Facility Swap Contract or Swap Contract does not contain any
provision exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party;

     (d) current liabilities of the Credit Parties or their respective Subsidiaries incurred
in the ordinary course of business but not incurred through (i) the borrowing of money or
(ii) the obtaining of credit except for credit on an open account basis

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customarily extended
and in fact extended in connection with normal purchases of goods and services;

     (e) Indebtedness in respect of taxes, assessments, governmental charges or levies and
claims for labor, materials and supplies to the extent that payment therefor shall not at
the time be required to be made in accordance with the provisions of this Credit Agreement;

     (f) Indebtedness in an aggregate principal amount not to exceed $150,000,000
outstanding under those certain 5.71% Senior Notes of East Tennessee Natural Gas, LLC
(“East Tennessee”) due 2012, issued pursuant to that certain Note Purchase Agreement
dated December 15, 2002 between East Tennessee and the note purchasers party thereto and any
refinancing, extension, renewal or refunding of such Indebtedness; provided, that
the principal amount of such Indebtedness is not increased other than to provide for the
payment of any underwriting discounts and fees related to any refinancing Indebtedness as
well as any premiums owed on and accrued and unpaid interest related to the original
Indebtedness;

     (g) Indebtedness in respect of judgments or awards only to the extent, for the period
and for an amount not resulting in a Default or Event of Default;

     (h) secured Indebtedness to the extent permitted by Section 8.2(m) or 8.2(n);

     (i) Indebtedness of any Subsidiary that does not permit or provide for recourse against
Parent, Borrower or any other Subsidiary, provided that (i) such Subsidiary has received an
Investment Grade Rating for such Subsidiary’s long-term senior unsecured, or (ii) such
Indebtedness is for the purpose of financing the construction or expansion of one or more
pipelines with respect to which a minimum of sixty percent (60%) of such pipeline capacity
is committed under long-term contracts of at least five years duration, or (iii) such
Indebtedness is for the purpose of financing the construction or expansion of one or more
gas storage facilities with respect to which a minimum of forty percent (40%) of the gas
storage capacity is committed under long-term contracts of at least two and one-half years
duration; and

     (j) other unsecured Indebtedness in an aggregate amount not to exceed, at any one time
outstanding, the greater of (i) $50,000,000 and (ii) 10% of Consolidated Net Tangible
Assets.

     On and after the Investment Grade Rating Date, no Credit Party will, nor will it permit its
Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness (other than Loans
hereunder) unless at the time of the incurrence thereof, after giving thereto: (x) Parent shall be
in pro forma compliance with Section 7.10(a) hereof, determined as of the last day of the most
recently ended fiscal quarter for which financial statements have been delivered pursuant to
Section 7.1(a) or (b), as applicable, and (y) no Default or Event of Default shall have occurred
and be continuing.

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     8.7 Investments.

     Prior to the Investment Grade Rating Date, no Credit Party will, nor will it permit its
Subsidiaries to, make any Investments, except:

     (a) Investments held by a Credit Party or a Subsidiary in the form of cash or Cash
Equivalents;

     (b) Investments in any Subsidiary;

     (c) Investments consisting of extensions of credit in the nature of accounts receivable
or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order to
prevent or limit loss;

     (d) Investments in Permitted Acquisitions and capital expenditures in the ordinary
course;

     (e) Investments in Credit Facility Swap Contracts and other Swap Contracts permitted by
Section 8.6;

     (f) Loans and advances to the general partner of the Borrower or the Parent to enable
such general partner of the to pay general and administrative costs and expenses pursuant to
the partnership agreement of the Borrower or Parent, as applicable;

     (g) additional Investments in any Joint Venture existing as of the Effective Date;

     (h) Investments in any Joint Venture for the purpose of developing capital projects in
the midstream energy business; provided, either (i) such Joint Venture is not subject to any
contract or other consensual restriction or limitation on the ability of such Joint Venture
to make Restricted Payments to the Credit Parties or their Subsidiaries (other than as
limitations contained in its organizational documents subjecting such Restricted Payments to
the discretion of its board and/or permitting Restricted Payments only to the extent of
available cash (as defined therein)), or (ii) any Investments in Joint Ventures other than
as described in the foregoing clause (i) shall not exceed, at any one time outstanding,
$35,000,000; and

     (i) other Investments in an aggregate amount not to exceed, at any one time
outstanding, $75,000,000.

     8.8 Restricted Payments.

     Prior to the Investment Grade Rating Date, no Credit Party will, nor will it permit its
Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that:

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     (a) (i) the Borrower may make Restricted Payments to the Parent, (ii) any Subsidiary
may make Restricted Payments to any Credit Party or any wholly-owned Subsidiary of Parent or
Borrower, and (iii) any non-wholly-owned Subsidiary may make Restricted Payments to its
owners on a pro rata basis in accordance with such owners’ pro rata ownership interest
therein;

     (b) a Credit Party or Subsidiary may declare and make dividend payments or other
distributions payable solely in the Capital Stock of such Person;

     (c) cash distributions may be made and redemption of limited partnership units may
occur with the proceeds of the Term Loan, the initial draw of Revolving Loans on the
Effective Date and the proceeds of the IPO, in each case in connection with the Initial
Asset Acquisition as described in the Registration Statement;

     (d) as long as no Default or Event of Default exists and is continuing, the Credit
Parties may make quarterly cash distributions in an amount not to exceed Available Cash for
such period; and

     (e) the Parent or Borrower may repurchase their respective limited partnership units in
an aggregate amount not exceeding $5,000,000 in any fiscal year.

SECTION 9.

EVENTS OF DEFAULT

     9.1 Events of Default.

     An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

     (a) Payment. A Credit Party shall: (i) default in the payment when due of any
principal amount of any of the Loans or of any reimbursement obligation arising from
drawings under any Letters of Credit; or (ii) default, and such default shall continue for
five or more Business Days, in the payment when due of any interest on the Loans or of any
fees or other amounts owing hereunder, under any of the other Credit Documents or in
connection herewith.

     (b) Representations. Any representation, warranty or statement made or deemed
to be made by a Credit Party herein, in any of the other Credit Documents, or in any
statement or certificate delivered or required to be delivered pursuant hereto or thereto
shall prove to have been untrue in any material respect on the date as of which it was
deemed to have been made.

     (c) Covenants. A Credit Party shall:

     (i) default in the due performance or observance of any term, covenant or
agreement contained in Section 7.1(f), 7.8, 7.10, 7.11, 8.1, 8.2, 8.3, 8.4, 8.5,
8.6, 8.7 or 8.8;

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     (ii) default in the due performance or observance by it of any term, covenant
or agreement contained in Section 7.13 of this Credit Agreement and such default
shall continue unremedied for a period of at least 5 Business Days after notice of
such default is given by the Agent or a Lender to the Borrower; or

     (iii) default in the due performance or observance by it of any term, covenant
or agreement (other than those referred to in subsections (a), (b), (c)(i) or
(c)(ii) of this Section 9.1) contained in this Credit Agreement or any other Credit
Document and such default shall continue unremedied for a period of at least 30 days
after the earlier of (A) a Responsible Officer of a Credit Party becoming aware of
such default or (B) notice of such default is given by the Agent or a Lender to the
Borrower.

     (d) Credit Documents.

     (i) Any Credit Document shall fail to be in full force and effect or a Credit
Party shall so assert or any Credit Document shall fail to give the Agent and/or the
Lenders the rights, powers and privileges purported to be created thereby; or

     (ii) The Agent shall cease to have a valid, perfected, first priority Lien on
the Cash Collateral in the Cash Collateral Account for any reason.

     (e) Bankruptcy, etc. The occurrence of any of the following with respect to a
Credit Party or a Subsidiary (i) a court or governmental agency having jurisdiction in the
premises shall enter a decree or order for relief in respect of such Credit Party or
Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of such Credit Party or Subsidiary or
for any substantial part of its property or ordering the winding up or liquidation of its
affairs; or (ii) an involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect is commenced against such Credit Party or Subsidiary
and such petition remains unstayed and in effect for a period of 90 consecutive days; or
(iii) such Credit Party or Subsidiary shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or consent to the
appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of such Person or any substantial part of its property or
make any general assignment for the benefit of creditors; or (iv) such Credit Party or
Subsidiary shall admit in writing its inability to pay its debts generally as they become
due or any action shall be taken by such Person in furtherance of any of the aforesaid
purposes.

     (f) Defaults under Other Agreements. With respect to any Indebtedness,
including any Off Balance Sheet Indebtedness, in excess of the greater of (i) $10,000,000 or
(ii) the lesser of (x) three percent (3%) of Consolidated Net Tangible Assets and (y)
$100,000,000 (other than Indebtedness outstanding under this Credit Agreement) of a Credit
Party or any Subsidiary such Credit Party or such Subsidiary shall (A) default in any
payment (beyond the applicable grace period with respect thereto, if any) with respect to
any

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such Indebtedness or fail to timely pay such Indebtedness when due, or (B) default
(after giving effect to any applicable grace period) in the observance or performance of any
covenant or agreement relating to such Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event or condition shall
occur or condition exist, the effect of which default or other event or condition in this
clause (B) is to cause any such Indebtedness to become due prior to its stated maturity.

     (g) Judgments. One or more judgments, orders, or decrees shall be entered
against a Credit Party or a Subsidiary involving a liability, in the aggregate, in excess of
the greater of (i) $10,000,000 or (ii) the lesser of (x) three percent (3%) of Consolidated
Net Tangible Assets and (y) $50,000,000 (to the extent not paid or covered by insurance
provided by a carrier who has acknowledged coverage) and such judgments, orders or decrees
shall continue unsatisfied, undischarged and unstayed for a period ending on the
first to occur of (i) the last day on which such judgment, order or decree becomes
final and unappealable and, where applicable, with the status of a judicial lien or (ii) 45
days.

     (h) ERISA. The occurrence of:

     (i) any of the following events or conditions which could result in a liability
of a Credit Party or an ERISA Affiliate, in the aggregate, in excess of the greater
of (i) $10,000,000 or (ii) the lesser of (x) three percent (3%) of Consolidated Net
Tangible Assets and (y) $25,000,000: (A) any “accumulated funding deficiency,” as
such term is defined in Section 302 of ERISA and Section 412 of the Code, whether or
not waived, shall exist with respect to any Plan, or any lien shall arise on the
assets of the Borrower or any ERISA Affiliate in favor of the PBGC or a Plan; or (B)
any prohibited transaction (within the meaning of Section 406 of ERISA or Section
4975 of the Code) or breach of fiduciary responsibility shall occur which would be
reasonably expected to subject the Borrower or any ERISA Affiliate to any liability
under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or
under any agreement or other instrument pursuant to which the Borrower or any ERISA
Affiliate has agreed or is required to indemnify any person against any such
liability; or

     (ii) any of the following events or conditions which could result in a
liability of a Credit Party or an ERISA Affiliate, in the aggregate, in excess of
the greater of (i) $10,000,000 or (ii) the lesser of (x) three percent (3%) of
Consolidated Net Tangible Assets and (y) $50,000,000: (A) a Termination Event shall
occur with respect to a Single Employer Plan which is, in the reasonable opinion of
the Agent, likely to result in the termination of such Plan for purposes of Title IV
of ERISA; or (B) a Termination Event shall occur with respect to a Multiemployer
Plan or Multiple Employer Plan which is, in the reasonable opinion of the Agent,
likely to result in (x) the termination of such Plan for purposes of Title IV of
ERISA, or (y) the Borrower or any ERISA Affiliate incurring any liability in
connection with a withdrawal from, reorganization of (within the meaning of Section
4241 of ERISA), or insolvency (within the meaning of Section 4245 of ERISA) of such
Plan.

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     (i) Change of Control. The occurrence of any Change of Control.

     9.2 Acceleration; Remedies.

     Upon the occurrence of an Event of Default, and at any time thereafter unless and until such
Event of Default has been waived by the Required Lenders (or the Lenders as may be required
hereunder), the Agent may, with the consent of the Required Lenders, and shall, upon the request
and direction of the Required Lenders, by written notice to the Borrower take any of the following
actions without prejudice to the rights of the Agent or any Lender to enforce its claims against
the Borrower, except as otherwise specifically provided for herein:

     (i) Termination of Commitments. Declare the Commitments and the
obligation of the Issuing Bank to issue any Letter of Credit to be terminated
whereupon the Commitments and such obligation of the Issuing Bank to issue any
Letter of Credit shall be immediately terminated.

     (ii) Acceleration of Loans and Letters of Credit. Declare the unpaid
principal of and any accrued interest in respect of all Loans, any reimbursement
obligations arising from drawings under Letters of Credit and any and all other
indebtedness or obligations of any and every kind owing by the Credit Parties to any
of the Lenders hereunder to be due whereupon the same shall be immediately due and
payable without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrower.

     (iii) Cash Collateralize Letters of Credit. Direct the Borrower to pay
(and the Borrower agrees that upon receipt of such notice, or upon the occurrence of
an Event of Default under Section 9.1(e), it will immediately pay) to the Issuing
Lender additional cash, to be held by the Issuing Lender, for the benefit of the
Lenders, in a cash collateral account as security for the LOC Obligations in respect
of subsequent drawings under all then outstanding Letters of Credit in an amount
equal to the maximum aggregate amount which may be drawn under all Letters of
Credits then outstanding.

     (iv) Enforcement of Rights. Enforce any and all rights and interests
created and existing under the Credit Documents, including, without limitation, all
rights of set-off.

     (v) Cash Collateral. Liquidate the Cash Collateral and apply the
proceeds thereof to repay the Term Loans then outstanding.

Notwithstanding the foregoing, if an Event of Default specified in Section 9.1(e) shall occur, then
the Commitments and the obligation of the Issuing Bank to issue any Letter of Credit shall
automatically terminate and all Loans, all reimbursement obligations under Letters of Credit, all
accrued interest in respect thereof, all accrued and unpaid fees and other indebtedness or
obligations owing to the Lenders and the Agent hereunder shall immediately become due and payable
without the giving of any notice or other action by the Agent or the Lenders.

Notwithstanding the fact that enforcement powers reside primarily with the Agent, each Lender has,
to the extent permitted by law, a separate right of payment and shall be considered a separate

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“creditor” holding a separate “claim” within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.

     9.3 Allocation of Payments After Event of Default.

     Notwithstanding any other provision of this Credit Agreement, after the occurrence of an Event
of Default, all amounts collected or received by the Agent or any Lender on account of amounts
outstanding under any of the Credit Documents shall be paid over or delivered as follows:

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable attorneys’ fees) of the Agent and the Lenders in connection
with enforcing the rights of the Lenders under the Credit Documents, pro rata as set forth
below;

     SECOND, to payment of any fees owed to the Agent, or any Lender, pro rata as set forth
below;

     THIRD, to the payment of all accrued interest payable to the Lenders hereunder, pro
rata as set forth below;

     FOURTH, to the payment of the outstanding principal amount of the Loans and to the
payment or cash collateralization of the outstanding LOC Obligations, pro rata, as set forth
below;

     FIFTH, to all other obligations which shall have become due and payable under the
Credit Documents and not repaid pursuant to clauses “FIRST” through “FOURTH” above; and

     SIXTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to
receive such surplus;

     provided, that all amounts collected from the proceeds of Cash Collateral shall be
used to repay the Term Loans.

In carrying out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (b) each of the
Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then
outstanding Loans and LOC Obligations held by such Lender bears to the aggregate then outstanding
Loans and LOC Obligations), of amounts available to be applied; and (c) to the extent that any
amounts available for distribution pursuant to clause “FOURTH” above are attributable to the issued
but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Agent in a
cash collateral account and applied (i) first, to reimburse the Issuing Lender from time to time
for any drawings under such Letters of Credit and (ii) then, following the expiration of all
Letters of Credit, to all other obligations of the types described in clauses “FOURTH”, “FIFTH” and
“SIXTH” above in the manner provided in this Section 9.3.

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SECTION 10.

AGENCY PROVISIONS

     10.1 Appointment.

     Each Lender hereby designates and appoints Wachovia Bank, National Association, as agent of
such Lender to act as specified herein and the other Credit Documents, and each such Lender hereby
authorizes the Agent, as the agent for such Lender, to take such action on its behalf under the
provisions of this Credit Agreement and the other Credit Documents and to exercise such powers and
perform such duties as are expressly delegated by the terms hereof and of the other Credit
Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding
any provision to the contrary elsewhere herein and in the other Credit Documents, the Agent shall
not have any duties or responsibilities, except those expressly set forth herein and therein, or
any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Credit Agreement or any of the other
Credit Documents, or shall otherwise exist against the Agent. The provisions of this
Section are solely for the benefit of the Agent and the Lenders and no Credit Party shall have
any rights as a third party beneficiary of the provisions hereof. In performing its functions and
duties under this Credit Agreement and the other Credit Documents, the Agent shall act solely as
agent of the Lenders and does not assume and shall not be deemed to have assumed any obligation or
relationship of agency or trust with or for any Credit Party. All institutions acting as a
Syndication Agent or Co-Documentation Agent hereunder shall have no obligations in such capacity
under the Credit Documents.

     10.2 Delegation of Duties.

     The Agent may execute any of its duties hereunder or under the other Credit Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible to the Lenders for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

     10.3 Exculpatory Provisions.

     Neither the Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates shall be liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection herewith or in connection with any of the other Credit Documents
(except for its or such Person’s own gross negligence or willful misconduct), or responsible in
any manner to any of the Lenders for any recitals, statements, representations or warranties made
by any Credit Party contained herein or in any of the other Credit Documents or in any certificate,
report, statement or other document referred to or provided for in, or received by the Agent under
or in connection herewith or in connection with the other Credit Documents, or enforceability or
sufficiency therefor of any of the other Credit Documents, or for any failure of any Credit Party
to perform its obligations hereunder or thereunder. The Agent shall not be responsible to any
Lender for the effectiveness, genuineness, validity, enforceability, collectibility or sufficiency
of this Credit Agreement, or any of the other Credit Documents or for any representations,
warranties, recitals or statements made herein or therein or made by any Credit Party in any
written or oral statement or in any financial or other statements, instruments, reports,
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connection herewith or therewith furnished or made by the
Agent to the Lenders or by or on behalf of any Credit Party to the Agent or any Lender or be
required to ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained herein or therein or as to the use of the
proceeds of the Loans or of the existence or possible existence of any Default or Event of Default
or to inspect the properties, books or records of any Credit Party. The Agent is not a trustee for
the Lenders and owes no fiduciary duty to the Lenders.

     10.4 Reliance on Communications.

     The Agent shall be entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram,
telecopy, telex or teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation, counsel to the
Credit Parties, independent accountants and other experts selected by the Agent with reasonable
care). The Agent may deem and treat the Lenders as the owner of its interests hereunder for all
purposes unless a written notice of assignment, negotiation or transfer thereof shall have been
filed with the Agent in
accordance with Section 11.3(b). The Agent shall be fully justified in failing or refusing to
take any action under this Credit Agreement or under any of the other Credit Documents unless it
shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or
it shall first be indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take any such action. The
Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or
under any of the other Credit Documents in accordance with a request of the Required Lenders (or to
the extent specifically provided in Section 11.6, all the Lenders) and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders (including their
successors and assigns).

     10.5 Notice of Default.

     The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default hereunder (other than an Event of Default specified in Section 9.1(a)) unless the
Agent has received notice from a Lender or the Borrower referring to the Credit Document,
describing such Default or Event of Default and stating that such notice is a “notice of default.”
In the event that the Agent receives such a notice, the Agent shall give prompt notice thereof to
the Lenders. The Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders.

     10.6 Non-Reliance on Agent and Other Lenders.

     Each Lender expressly acknowledges that neither the Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it
and that no act by the Agent or any Affiliate thereof hereinafter taken, including any review of
the affairs of the Credit Parties, shall be deemed to constitute any representation or warranty by
the Agent to any Lender. Each Lender represents to the Agent that it has, independently and
without reliance upon the Agent or any other Lender, and based on such documents and information as
it has deemed appropriate, made its own appraisal of and investigation into the business, assets,

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operations, property, financial and other conditions, prospects and creditworthiness of the Credit
Parties and made its own decision to make its Extensions of Credit hereunder and enter into this
Credit Agreement. Each Lender also represents that it will, independently and without reliance
upon the Agent or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Credit Agreement, and to make such investigation as it deems
necessary to inform itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Credit Parties. Except for notices, reports and
other documents expressly required to be furnished to the Lenders by the Agent hereunder, the Agent
shall not have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or other conditions,
prospects or creditworthiness of the Credit Parties which may come into the possession of the Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

     10.7 Indemnification.

     Each Lender agrees to indemnify the Agent (including for purposes of this Section 10.7 the
Agent in its capacity as Issuing Lender) in its capacity as such (to the extent not reimbursed by
the Credit Parties and without limiting the obligation of the Credit Parties to do so), ratably
according to
its Commitment Percentage, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including without limitation at any time following the payment in
full of the Credit Parties Obligations) be imposed on, incurred by or asserted against the Agent in
its capacity as such in any way relating to or arising out of this Credit Agreement or the other
Credit Documents or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by the Agent under or in
connection with any of the foregoing; provided, that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the gross negligence or willful
misconduct of the Agent. If any indemnity furnished to the Agent for any purpose shall, in the
opinion of the Agent, be insufficient or become impaired, the Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until such additional
indemnity is furnished. The agreements in this Section 10.7 shall survive the payment of the
Obligations and all other amounts payable hereunder and under the other Credit Documents and the
termination of the Commitments.

     10.8 Agent in Its Individual Capacity.

     The Agent and its Affiliates may make loans to, accept deposits from and generally engage in
any kind of business with a Credit Party as though the Agent were not Agent hereunder. With
respect to the Loans made, Letters of Credit issued and all Obligations owing to it, the Agent
shall have the same rights and powers under this Credit Agreement as any Lender and may exercise
the same as though it were not the Agent, and the terms “Lender” and “Lenders” shall include the
Agent in its individual capacity.

     10.9 Successor Agent.

     The Agent may, at any time, resign upon 30 days written notice to the Lenders and the
Borrower. Upon any such resignation, the Borrower with the consent of the Required Lenders

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(such
consent of the Required Lenders not to be unreasonably withheld or delayed) shall have the right to
appoint a successor Agent; provided, upon the occurrence and during the continuance of an Event of
Default, the Required Lenders shall have the right to appoint a successor Agent without the consent
of the Borrower. If no successor Agent shall have been so appointed and shall have accepted such
appointment within 30 days after the notice of resignation, then the retiring Agent shall in
consultation with the Borrower, select a successor Agent provided such successor is a Lender
hereunder or qualifies as an Eligible Assignee (or if no Eligible Assignee shall have been so
appointed by the retiring Agent and shall have accepted such appointment, then the Lenders shall
perform all obligations of the retiring Agent hereunder until such time, if any, as a successor
Agent shall have been appointed and shall have accepted such appointment as provided for above).
Upon the acceptance of any appointment as Agent hereunder by a successor, such successor Agent
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations as
Agent, as appropriate, under this Credit Agreement and the other Credit Documents and the
provisions of this Section 10.9 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Credit Agreement; provided, if such successor Agent shall
have been appointed without the consent of the Borrower, such successor Agent may be replaced by
the Borrower with the consent of the Required Lenders so long as no Event of Default has occurred
and is continuing.

SECTION 11.

MISCELLANEOUS

     11.1 Notices.

     (a) Except as otherwise expressly provided herein, all notices and other communications
shall have been duly given and shall be effective (i) when delivered, (ii) when transmitted
via telecopy (or other facsimile device), (iii) the Business Day following the day on which
the same has been delivered prepaid (or pursuant to an invoice arrangement) to a reputable
national overnight air courier service, or (iv) the third Business Day following the day on
which the same is sent by certified or registered mail, postage prepaid, in each case to the
respective parties at the address or telecopy numbers set forth on Schedule 11.1, or
at such other address as such party may specify by written notice to the other parties
hereto.

     (b) Notwithstanding anything herein to the contrary, notices and other communications
to the Agent, the Lenders and the Credit Parties, may be delivered or furnished by
electronic communication (including email, Internet or intranet website) pursuant to
procedures approved by the Agent.

     11.2 Right of Set-Off.

     In addition to any rights now or hereafter granted under applicable law or otherwise, and not
by way of limitation of any such rights, upon the occurrence of an Event of Default and the
commencement of remedies described in Section 9.2, each Lender is authorized at any time and from
time to time, without presentment, demand, protest or other notice of any kind (all of which rights
being hereby expressly waived), to set-off and to appropriate and apply any and all deposits

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(general or special) and any other indebtedness at any time held or owing by such Lender
(including, without limitation branches, agencies or Affiliates of such Lender wherever located) to
or for the credit or the account of the Borrower against obligations and liabilities of the
Borrower to the Lenders hereunder, under the Notes, the other Credit Documents or otherwise,
irrespective of whether the Agent or the Lenders shall have made any demand hereunder and although
such obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any
such set-off shall be deemed to have been made immediately upon the occurrence of an Event of
Default even though such charge is made or entered on the books of such Lender subsequent thereto.

     11.3 Benefit of Agreement.

     (a) Generally. This Credit Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective successors and assigns of the parties
hereto; provided, that the Borrower may not assign and transfer any of its interests
without the prior written consent of the Lenders; and provided, further,
that the rights of each Lender to transfer, assign or grant participations in its rights
and/or obligations hereunder shall be limited as set forth below in this Section 11.3.

     (b) Assignments. Each Lender may assign to one or more Eligible Assignees all
or a portion of its rights and obligations under this Credit Agreement (including, without
limitation, all or a portion of its Loans, its Notes, its LOC Obligations and its
Commitment); provided, however, that:

     (i) each such assignment shall be to an Eligible Assignee;

     (ii) all assignments of the Term Loans or the Original Revolving Committed
Amount must be pro rata among such Lender’s Commitment with respect to the Term
Loans and Original Revolving Committed Amount.

     (iii) except in the case of an assignment to another Lender or an assignment of
all of a Lender’s rights and obligations under this Credit Agreement, any such
partial assignment shall be in an amount at least equal to $10,000,000 (or, if less,
the remaining amount of the Commitment (which for this purpose includes Loans and
LOC Obligations) being assigned by such Lender) and an integral multiple of
$1,000,000 in excess thereof; and

     (iv) the parties to such assignment shall execute and deliver to the Agent for
its acceptance an Assignment Agreement in substantially the form of Exhibit
11.3(b), together with a processing fee from the assignor of $3,500.

     Upon execution, delivery, and acceptance of such Assignment Agreement, the assignee thereunder
shall be a party hereto and, to the extent of such assignment, have the obligations, rights, and
benefits of a Lender hereunder and the assigning Lender shall, to the extent of such assignment,
relinquish its rights (except those rights hereunder which by their terms expressly survive) and be
released from its obligations under this Credit Agreement. Upon the consummation of any assignment
pursuant to this Section 11.3(b), the assignor, the Agent and the Borrower shall make appropriate
arrangements so that, if required, new Notes are issued to the assignor and the assignee. If the
assignee is not incorporated under the laws of the United States of America or a state thereof,

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it
shall deliver to the Borrower and the Agent certification as to exemption from deduction or
withholding of taxes in accordance with Section 4.4.

     By executing and delivering an assignment agreement in accordance with this Section 11.3(b),
the assigning Lender thereunder and the assignee thereunder shall be deemed to confirm to and agree
with each other and the other parties hereto as follows: (A) such assigning Lender warrants that it
is the legal and beneficial owner of the interest being assigned thereby free and clear of any
adverse claim created by such assigning Lender and the assignee warrants that it is an Eligible
Assignee; (B) except as set forth in clause (A) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Credit Agreement, any of the other Credit
Documents or any other instrument or document furnished pursuant hereto or thereto, or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Credit
Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant
hereto or thereto or the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under this Credit Agreement, any of the other Credit
Documents or any other instrument or document furnished pursuant hereto or thereto; (C) such
assigning Lender and such assignee represents and warrants that it is legally authorized to enter
into such assignment agreement; (D) such assignee confirms that it has received a copy of this
Credit Agreement, the other Credit Documents and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into such assignment
agreement; (E) such assignee will independently and without reliance upon the Agent, such
assigning Lender or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Credit Agreement and the other Credit Documents; (F) such assignee appoints and
authorizes the Agent to take such action on its behalf and to exercise such powers under this
Credit Agreement or any other Credit Document as are delegated to the Agent by the terms hereof or
thereof, together with such powers as are reasonably incidental thereto; and (G) such assignee
agrees that it will perform in accordance with their terms all the obligations which by the terms
of this Credit Agreement and the other Credit Documents are required to be performed by it as a
Lender.

     (c) Register. The Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain a copy of each Assignment Agreement delivered to and accepted by it
and a register for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time
(the “Register”). The entries in the Register shall be conclusive and binding for
all purposes, absent manifest error, and the Borrower, the Agent and the Lenders may treat
each Person whose name is recorded in the Register as a Lender hereunder for all purposes of
this Credit Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior notice.

     (d) Acceptance. Upon its receipt of an Assignment Agreement executed by the
parties thereto, together with any Note subject to such assignment and payment of the
processing fee, the Agent shall, if such Assignment Agreement has been completed and is in
substantially the form of Exhibit 11.3(b) hereto, (i) accept such Assignment
Agreement, (ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the parties thereto.

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     (e) Participations. Each Lender may sell participations to one or more Persons
in all or a portion of its rights, obligations or rights and obligations under this Credit
Agreement (including all or a portion of its Commitment, its Notes, its LOC Obligations and
its Loans); provided, however, that (i) such Lender’s obligations under this
Credit Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, (iii) the participant
shall be entitled to the benefit of the yield protection provisions contained in Sections
4.1 through 4.4, inclusive, but shall not be entitled to receive any amount greater than
such Lender would have been able to receive, and (iv) the Borrower shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Credit Agreement, and such Lender shall retain the sole right to enforce the
obligations of the Borrower relating to its Loans, its Notes and its LOC Obligations and to
approve any amendment, modification, or waiver of any provision of this Credit Agreement
(other than amendments, modifications, or waivers decreasing the amount of principal of or
the rate at which interest is payable on such Loans or Notes, extending any scheduled
principal payment date or date fixed for the payment of interest on such Loans or Notes, or
extending its Commitment).

     (f) Nonrestricted Assignments. Notwithstanding any other provision set forth
in this Credit Agreement, any Lender may at any time assign and pledge all or any portion of
its Loans and its Notes to any Federal Reserve Bank as collateral security pursuant to
Regulation A and any Operating Circular issued by such Federal Reserve Bank. No such
assignment shall release the assigning Lender from its obligations hereunder.

     (g) Information. Subject to Section 11.17, any Lender may furnish any
information concerning the Borrower in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants).

     11.4 No Waiver; Remedies Cumulative.

     No failure or delay on the part of the Agent or any Lender in exercising any right, power or
privilege hereunder or under any other Credit Document and no course of dealing between the
Borrower and the Agent or any Lender shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder or under any other Credit Document
preclude any other or further exercise thereof or the exercise of any other right, power or
privilege hereunder or thereunder. The rights and remedies provided herein are cumulative and not
exclusive of any rights or remedies which the Agent or any Lender would otherwise have. No notice
to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar or other circumstances or constitute a waiver of the rights of the Agent or
the Lenders to any other or further action in any circumstances without notice or demand.

     11.5 Payment of Expenses, etc.

     The Borrower agrees to: (i) pay all reasonable out-of-pocket costs and expenses of the Agent
in connection with (A) the negotiation, preparation, execution and delivery, syndication and
administration of this Credit Agreement and the other Credit Documents and the documents and
instruments referred to therein (including, without limitation, the reasonable fees and expenses of
counsel to the Agent) and (B) any amendment, waiver or consent relating hereto and thereto

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including, but not limited to, any such amendments, waivers or consents resulting from or related
to any work-out, renegotiation or restructure relating to the performance by the Borrower under
this Credit Agreement, (ii) pay all reasonable out-of-pocket costs and expenses of the Agent and
each Lender in connection with (A) enforcement of the Credit Documents and the documents and
instruments referred to therein (including, without limitation, in connection with any such
enforcement, the reasonable fees and disbursements of counsel for the Agent and each of the Lenders
(including the allocated cost of internal counsel)) and (B) any bankruptcy or insolvency proceeding
of any Credit Party and (iii) indemnify the Agent and each Lender, their respective Affiliates and
the respective officers, directors, employees, representatives and agents of the foregoing from and
hold each of them harmless against any and all losses, liabilities, claims, damages or expenses
incurred by any of them as a result of, or arising out of, or in any way related to, or by reason
of, any investigation, litigation or other proceeding (whether or not the Agent or any Lender is a
party thereto) related to the entering into and/or performance of any Credit Document or the use of
proceeds of any Loans (including other extensions of credit) hereunder or the consummation of any
other transactions contemplated in any Credit Document, including, without limitation, the
reasonable fees and disbursements of counsel and settlement costs incurred in connection with any
such investigation, litigation or other proceeding (but excluding any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of gross negligence or willful
misconduct on the part of the Person to be indemnified).

     11.6 Amendments, Waivers and Consents.

     Neither this Credit Agreement, nor any other Credit Document nor any of the terms hereof or
thereof may be amended, changed, waived, discharged or terminated unless such amendment, change,
waiver, discharge or termination is in writing and signed by the Required Lenders and the Borrower
(and if the rights or duties of the Issuing Bank are affected thereby, by it); provided,
that no such amendment, change, waiver, discharge or termination shall without the consent of each
Lender directly affected thereby:

     (a) extend the Maturity Date, or postpone or extend the time for any payment or
prepayment of principal (except pursuant to Section 3.2(b)) or the time of payment of any
reimbursement obligation, or any portion thereof, arising from drawings under Letters of
Credit;

     (b) reduce the rate or extend the time of payment of interest thereon or fees or other
amounts payable hereunder to such Lender;

     (c) reduce or waive the principal amount of any Loan or of any reimbursement
obligation, or any portion thereof, arising from drawings under Letters of Credit owing to
such Lender;

     (d) increase (other than an increase to its Revolving Commitment resulting from an
increase in the Revolving Committed Amount pursuant to the sale of Term Loan Cash Collateral
as set forth in Section 3.2(a)(ii)) or extend the Commitment of a Lender (it being
understood and agreed that a waiver of any Default or Event of Default or a waiver of any
mandatory reduction in the Commitments shall not constitute a change in the terms of any
Commitment of any Lender);

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     (e) consent to the assignment or transfer by the Borrower of any of its rights and
obligations under (or in respect of) the Credit Documents or release the Borrower from its
obligations under the Credit Documents, which shall require the consent of all Lenders;

     (f) amend, modify or waive any provision of this Section 11.6 or Section 2.10, 3.6,
3.8, 5.2, 9.1(a), 11.2, 11.3 or 11.5;

     (g) reduce any percentage specified in, or otherwise modify, the definition of Required
Lenders;

     (h) release the Cash Collateral, which shall require the consent of all Lenders, except
as specifically permitted hereunder and by the Collateral Documents; or

     (i) release the Parent from its obligations under the Credit Documents, which shall
require the consent of all Lenders.

No provision of Section 10 may be amended or modified without the consent of the Agent.

No provision of Section 2.2 may be amended or modified without the consent of each Issuing Lender
affected thereby.

No provision of Section 2.8 may be amended or modified without the consent of the Swingline Lender.

Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances
as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on any
reorganization plan that affects the Loans or the Letters of Credit, and each Lender acknowledges
that the provisions of Section 1126(c) of the Bankruptcy Code supersede the unanimous consent
provisions set forth herein and (y) the Required Lenders may consent to allow the Borrower to use
cash collateral in the context of a bankruptcy or insolvency proceeding.

     11.7 Counterparts/Telecopy.

     This Credit Agreement may be executed in any number of counterparts, each of which where so
executed and delivered shall be an original, but all of which shall constitute one and the same
instrument. Delivery of executed counterparts by telecopy or other electronic means shall be as
effective as an original and shall constitute a representation that an original will be delivered.

     11.8 Headings.

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

     11.9 Defaulting Lender.

     Each Lender understands and agrees that if such Lender is a Defaulting Lender then it shall
not be entitled to vote on any matter requiring the consent of the Required Lenders or to object to
any matter requiring the consent of all the Lenders; provided, however, that (a) a
Lender’s Commitment may not be increased without its consent whether or not it is a Defaulting
Lender and

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(b) all other benefits and obligations under the Credit Documents shall apply to such
Defaulting Lender.

     11.10 Survival of Indemnification and Representations and Warranties.

     All indemnities set forth herein and all representations and warranties made herein shall
survive the execution and delivery of this Credit Agreement, the making of the Loans, the issuance
of the Letters of Credit and the repayment of the Loans, LOC Obligations and other obligations and
the termination of the Commitments hereunder.

     11.11 Governing Law; Venue.

     (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any legal action or proceeding with
respect to this Credit Agreement or any other Credit Document may be brought in the courts
of the State of New York, or of the United States for the Southern District of New York,
and, by execution and delivery of this Credit Agreement, the Borrower hereby irrevocably
accepts for itself and in respect of its property, generally and unconditionally, the
jurisdiction of such courts. The Borrower further irrevocably consents to the service of
process out of any of the aforementioned courts in any such action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to it at the
address for notices pursuant to Section 11.1, such
service to become effective 30 days after such mailing. Nothing herein shall affect
the right of a Lender to serve process in any other manner permitted by law or to commence
legal proceedings or to otherwise proceed against the Borrower in any other jurisdiction.

     (b) The Borrower hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings arising out of or
in connection with this Credit Agreement or any other Credit Document brought in the courts
referred to in subsection (a) hereof and hereby further irrevocably waives and agrees not to
plead or claim in any such court that any such action or proceeding brought in any such
court has been brought in an inconvenient forum.

     11.12 Waiver of Jury Trial; Waiver of Consequential Damages.

     EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT,
ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. The Borrower agrees not
to assert any claim against the Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys or agents, on any theory of liability, for
special, indirect, consequential or punitive damages arising out of or otherwise relating to any of
the transactions contemplated hereby or by the other Credit Documents.

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     11.13 Severability.

     If any provision of any of the Credit Documents is determined to be illegal, invalid or
unenforceable, such provision shall be fully severable and the remaining provisions shall remain in
full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

     11.14 Further Assurances.

     The Borrower agrees, upon the request of the Agent, to promptly take such actions, as
reasonably requested, as are necessary to carry out the intent of this Credit Agreement and the
other Credit Documents.

     11.15 Entirety.

     This Credit Agreement together with the other Credit Documents represent the entire agreement
of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or
written, if any, including any commitment letters or correspondence relating to the Credit
Documents or the transactions contemplated herein and therein.

     11.16 Binding Effect; Continuing Agreement.

     (a) This Credit Agreement shall become effective at such time when all of the
conditions set forth in Section 5.1 have been satisfied or waived by the Lenders and it
shall have been executed by the Borrower, the Agent and the Lenders, and thereafter this
Credit Agreement shall be binding upon and inure to the benefit of the Borrower, the Agent
and each Lender and their respective successors and permitted assigns.

     (b) This Credit Agreement shall be a continuing agreement and shall remain in full
force and effect until all Loans, LOC Obligations, interest, fees and other Obligations have
been paid in full and all Commitments and Letters of Credit have been terminated. Upon such
termination, the Borrower shall have no further obligations (other than those provisions
that expressly survive the termination thereof) under the Credit Documents;
provided, that should any payment, in whole or in part, of the Obligations be
rescinded or otherwise required to be restored or returned by the Agent or any Lender,
whether as a result of any proceedings in bankruptcy or reorganization or otherwise, then
the Credit Documents shall automatically be reinstated and all amounts required to be
restored or returned and all costs and expenses incurred by the Agent or any Lender in
connection therewith shall be deemed included as part of the Obligations.

     11.17 Confidentiality; USA PATRIOT Act.

     (a) The Agent and each Lender will keep any information delivered or made available by
the Borrower pursuant to this Credit Agreement confidential from anyone other than persons
employed or retained by the Agent or such Lender and its Affiliates who are engaged in
evaluating, approving, structuring or administering this Credit Agreement; provided,
that the Agent and the Lenders shall be entitled to disclose such information (a) to any
other Lender or to the Agent, (b) upon the order of any court or administrative agency, (c)
upon the request or demand of any regulatory agency or authority, (d) which had been

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publicly disclosed other than as a result of a disclosure by the Agent or any Lender
prohibited by this Agreement, (e) in connection with any litigation to which the Agent, any
Lender or its subsidiaries or parent may be a party, (f) to the extent necessary in
connection with the exercise of any remedy under this Agreement, (g) to such Lender’s or
Agent’s legal counsel and independent auditors and (h) to any actual or proposed participant
or assignee; provided such participant or assignee agrees in writing to keep all
such information confidential on terms substantially similar to this Section 11.17.

     (b) Each Lender hereby notifies the Borrower that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Patriot Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in accordance with
the Patriot Act.

SECTION 12.

GUARANTY

     12.1 The Guaranty.

     Parent hereby guarantees to each Lender, each Affiliate of a Lender that enters into a Credit
Facility Swap Contract or a Treasury Management Agreement with a Credit Party, and the Agent as
hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations
in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof.
Parent hereby further agrees that if any of the Obligations are not paid in full when due (whether
at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), Parent will, jointly and severally, promptly pay the same, without
any demand or notice whatsoever, and that in the case of any extension of time of payment or
renewal of any of the Obligations, the same will be promptly paid in full when due (whether at
extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal.

     12.2 Obligations Unconditional.

     The obligations of the Parent under this Section 12.1 are absolute and unconditional,
irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit
Documents, Credit Facility Swap Contracts or Treasury Management Agreements, or any other agreement
or instrument referred to therein, or any substitution, release, impairment or exchange of any
other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this
Section 12.2 that the obligations of the Parent hereunder shall be absolute and unconditional under
any and all circumstances. The Parent agrees that it shall have no right of subrogation,
indemnity, reimbursement or contribution against the Borrower for amounts paid under this Section
12 until such time as the Obligations have been paid in full and the Commitments have expired or
terminated. Without limiting the generality of the foregoing, it is agreed that, to the fullest
extent

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permitted by law, the occurrence of any one or more of the following shall not alter or impair
the liability of the Parent hereunder, which shall remain absolute and unconditional as described
above:

     (a) at any time or from time to time, without notice to the Parent, the time for any
performance of or compliance with any of the Obligations shall be extended, or such
performance or compliance shall be waived;

     (b) any of the acts mentioned in any of the provisions of any of the Credit Documents,
any Credit Facility Swap Contract or Treasury Management Agreement between Credit Party and
any Lender, or any Affiliate of a Lender, or any other agreement or instrument referred to
in the Credit Documents, such Credit Facility Swap Contracts or such Treasury Management
Agreements shall be done or omitted;

     (c) the maturity of any of the Obligations shall be accelerated, or any of the
Obligations shall be modified, supplemented or amended in any respect, or any right under
any of the Credit Documents, any Credit Facility Swap Contract or Treasury Management
Agreement between any Credit Party and any Lender, or any Affiliate of a Lender, or any
other agreement or instrument referred to in the Credit Documents, such Credit Facility Swap
Contracts or such Treasury Management Agreements shall be waived or any other guarantee of
any of the Obligations or any security therefor shall be released, impaired or exchanged in
whole or in part or otherwise dealt with;

     (d) any Lien granted to, or in favor of, the Agent or any Lender or Lenders as security
for any of the Obligations shall fail to attach or be perfected; or

     (e) any of the Obligations shall be determined to be void or voidable (including,
without limitation, for the benefit of any creditor of the Parent) or shall be subordinated
to the claims of any Person (including, without limitation, any creditor of the Parent).

     With respect to its obligations hereunder, the Parent hereby expressly waives diligence,
presentment, demand of payment, protest and all notices whatsoever, and any requirement that the
Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of
the Credit Documents, any Credit Facility Swap Contract or any Treasury Management Agreement
between any Credit Party and any Lender, or any Affiliate of a Lender, or any other agreement or
instrument referred to in the Credit Documents, such Credit Facility Swap Contracts or such
Treasury Management Agreements, or against any other Person under any other guarantee of, or
security for, any of the Obligations.

     12.3 Reinstatement.

     The obligations of the Parent under this Section 12 shall be automatically reinstated if and
to the extent that for any reason any payment by or on behalf of any Person in respect of the
Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and Parent
agrees that it will indemnify the Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, the reasonable fees, charges and disbursements of counsel)
incurred by the Agent or such Lender in connection with such rescission or restoration, including
any such costs and expenses incurred in defending against any claim alleging that such

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payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

     12.4 Certain Additional Waivers.

     The Parent further agrees that it shall have no right of recourse to security for the
Obligations, except through the exercise of rights of subrogation pursuant to Section 12.2 and
through the exercise of rights of contribution pursuant to Section 12.6.

     12.5 Remedies.

     The Parent agrees that, to the fullest extent permitted by law, as between the Parent, on the
one hand, and the Agent and the Lenders, on the other hand, the Obligations may be declared to be
forthwith due and payable as provided in Section 9.2 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section 9.2) for purposes of
Section 12.1 notwithstanding any stay, injunction or other prohibition preventing such declaration
(or preventing the Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Obligations being deemed to have become
automatically due and payable), the Obligations (whether or not due and payable by any other
Person) shall forthwith become due and payable by the Parent for purposes of Section 12.1. The
Parent acknowledges and agrees that their obligations hereunder are secured in accordance with the
terms hereof and of the Collateral Documents and that the Lenders may exercise their remedies
thereunder in accordance with the terms thereof.

     12.6 Reserved.

     12.7 Guarantee of Payment; Continuing Guarantee.

     The guarantee in this Section 12 is a guaranty of payment and not of collection, is a
continuing guarantee, and shall apply to all Obligations whenever arising. All Obligations which
are incurred by two or more Credit Parties shall be their joint and several obligations and
liabilities.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

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     Each of the parties hereto has caused a counterpart of this Credit Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	BORROWER:	 	SPECTRA ENERGY PARTNERS OLP, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lon C. Mitchell	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lon C. Mitchell	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	PARENT GUARANTOR:	 	SPECTRA ENERGY PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Spectra Energy Partners (DE) GP, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Spectra Energy Partners GP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lon C. Mitchell	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lon C. Mitchell	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

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	LENDERS:
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL
ASSOCIATION, as Agent and
as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lawrence P. Sullivan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lawrence P. Sullivan	 	 
	 

	 	 	 	Title: Managing Director	 	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-2

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/
David Lawrence	 
	 	 	Name: David Lawrence	 
	 	 	Title: Attorney-in-Fact	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-3

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/
Rob Traband	 
	 	 	Name: Rob Traband	 
	 	 	Title: Executive Director	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-4

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as a Lender

 	 
	 	By:  	/s/
Matthew Main	 
	 	 	Name: Matthew Main	 
	 	 	Title: Managing Director	 	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-5

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	/s/ Yann
Pirio	 
	 	 	Name: Yann
Pirio	 
	 	 	Title: Vice President	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-6

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	/s/ Gabe
Gomez	 
	 	 	Name: Gabe
Gomez	 
	 	 	Title: Vice President	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-7

 

	 	 	 	 	 

	 	 	 	 	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	/s/ Sydney
Dennis	 
	 	 	Name: Sydney
Dennis	 
	 	 	Title: Director	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-8

 

	 	 	 	 	 

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

 	 
	 	By:  	/s/ Chi-Cheng
Chen	 
	 	 	Name: Chi-Cheng
Chen	 
	 	 	Title: Authorized Signatory	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-9

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, Cayman
Islands
Branch, as a Lender
 	 
	 
	 	By:  	/s/ Thomas
Cantello	 
	 	 	Name: Thomas
Cantello	 
	 	 	Title: Director	 
	 
	 	By:  	/s/ Shaheen
Malik	 
	 	 	Name: Shaheen
Malik	 
	 	 	Title: Associate	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-10

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK AG, as a Lender

 	 
	 	By:  	/s/ Rainer
Meier	 
	 	 	Name: Rainer
Meier	 
	 	 	Title: Vice President	 
	 
	 	By:  	/s/ Heidi
Sandquist	 
	 	 	Name: Heidi
Sandquist	 
	 	 	Title: Vice President	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-11

 

	 	 	 	 	 

	 	 	 	 	 
	 	LEHMAN BROTHERS COMMERCIAL BANK, as a Lender

 	 
	 	By:  	/s/ Brian
McNany	 
	 	 	Name: Brian
McNany	 
	 	 	Title: Authorized Signatory	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-12

 

	 	 	 	 	 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 	By:  	/s/ Louis
Alder	 
	 	 	Name: Louis
Alder	 
	 	 	Title: Director	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-13

 

	 	 	 	 	 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, as a Lender

 	 
	 	By:  	/s/ Daniel
Twenge	 
	 	 	Name: Daniel
Twenge	 
	 	 	Title: Authorized Signatory	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-14

 

	 	 	 	 	 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	/s/
Mary E. Evans	 
	 	 	Name:  	Mary E. Evans	 
	 	 	Title:  	Associate Director	 
	 
	 
	 	By:  	/s/ Irja R. Otsa	 
	 	 	Name:  	Irja R. Otsa	 
	 	 	Title:  	Associate Director	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-15

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO BANK N.V., as a Lender

 	 
	 	By:  	/s/ John D. Reed	 
	 	 	Name:  	John D. Reed	 
	 	 	Title:  	Assistant Vice President	 
	 
	 
	 	By:  	/s/ Todd D. Vaubel	 
	 	 	Name:  	Todd D. Vaubel	 
	 	 	Title:  	Assistant Vice President	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-16

 

	 	 	 	 	 

	 	 	 	 	 
	 	KEYBANK NATIONAL

   ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Keven D. Smith	 
	 	 	Name:  	Keven D. Smith	 
	 	 	Title:  	Senior Vice President	 
	 

Spectra Energy Partners OLP, LP

Credit Agreement

S-17exv10w6

 

Exhibit 10.6

 

SECOND AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

GULFSTREAM NATURAL GAS SYSTEM, L.L.C.

A Delaware Limited Liability Company

February 28, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	1.01 Definitions
	 	 	1	 
	1.02 Interpretation
	 	 	14	 
	ARTICLE 2 ORGANIZATION
	 	 	14	 
	2.01 Formation
	 	 	14	 
	2.02 Name
	 	 	14	 
	2.03 Registered Office; Registered Agent; Principal Office in the United States; Other Offices 
	 	 	14	 
	2.04 Purposes
	 	 	15	 
	2.05 Foreign Qualification
	 	 	15	 
	2.06 Term
	 	 	15	 
	ARTICLE 3 MEMBERSHIP; DISPOSITIONS OF INTERESTS
	 	 	15	 
	3.01 Current Members
	 	 	15	 
	3.02 Representations, Warranties and Covenants
	 	 	15	 
	3.03 Dispositions and Encumbrances of Membership Interests
	 	 	16	 
	3.04 Creation of Additional Membership Interest
	 	 	23	 
	3.05 Access to Information
	 	 	23	 
	3.06 Confidential Information
	 	 	23	 
	3.07 Liability to Third Parties
	 	 	25	 
	3.08 Use of Members’ Names and Trademarks
	 	 	25	 
	ARTICLE 4 CAPITAL CONTRIBUTIONS
	 	 	25	 
	4.01 Capital Contributions
	 	 	25	 
	4.02 Loans
	 	 	26	 
	4.03 No Other Contribution Obligations
	 	 	27	 
	4.04 Return of Contributions
	 	 	27	 
	4.05 Capital Accounts
	 	 	27	 
	4.06 Failure to Make a Capital Contribution
	 	 	29	 
	ARTICLE 5 DISTRIBUTIONS AND ALLOCATIONS
	 	 	31	 
	5.01 Distributions
	 	 	31	 
	5.02 Distributions on Dissolution and Winding-Up
	 	 	31	 
	5.03 Allocations
	 	 	31	 
	5.04 Varying Interests
	 	 	32	 
	ARTICLE 6 MANAGEMENT
	 	 	32	 
	6.01 Generally
	 	 	32	 
	6.02 Management Committee
	 	 	32	 
	6.03 Construction, Operation and Management Agreement
	 	 	38	 
	6.04 Conflicts of Interest
	 	 	38	 
	6.05 Indemnification for Breach of Agreement
	 	 	39	 
	ARTICLE 7 DEVELOPMENT OF FACILITIES
	 	 	40	 
	7.01 Development of Initial Facilities
	 	 	40	 
	7.02 Construction Capital Opportunities
	 	 	41	 
	7.03 Acquisition Capital Opportunities
	 	 	43	 
	7.04 General Regulatory Matters
	 	 	44	 
	ARTICLE 8 TAXES
	 	 	44	 
	8.01 Tax Returns
	 	 	44	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	8.02 Tax Elections
	 	 	45	 
	8.03 Tax Matters Member
	 	 	45	 
	ARTICLE 9 BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS
	 	 	46	 
	9.01 Maintenance of Books
	 	 	46	 
	9.02 Reports
	 	 	46	 
	9.03 Bank Accounts
	 	 	49	 
	ARTICLE 10 WITHDRAWAL
	 	 	49	 
	10.01 No Right of Withdrawal
	 	 	49	 
	10.02 Deemed Withdrawal
	 	 	49	 
	10.03 Effect of Withdrawal
	 	 	49	 
	ARTICLE 11 DISPUTE RESOLUTION
	 	 	51	 
	11.01 Disputes
	 	 	51	 
	11.02 Negotiation to Resolve Disputes
	 	 	51	 
	11.03 Selection of Arbitrator
	 	 	52	 
	11.04 Conduct of Arbitration
	 	 	52	 
	ARTICLE 12 DISSOLUTION, WINDING-UP AND TERMINATION
	 	 	53	 
	12.01 Dissolution
	 	 	53	 
	12.02 Winding-Up and Termination
	 	 	53	 
	12.03 Deficit Capital Accounts
	 	 	54	 
	12.04 Certificate of Cancellation
	 	 	54	 
	ARTICLE 13 GENERAL PROVISIONS
	 	 	55	 
	13.01 Offset
	 	 	55	 
	13.02 Notices
	 	 	55	 
	13.03 Entire Agreement; Superseding Effect
	 	 	55	 
	13.04 Effect of Waiver or Consent
	 	 	55	 
	13.05 Amendment or Restatement
	 	 	55	 
	13.06 Binding Effect
	 	 	55	 
	13.07 Governing Law; Severability
	 	 	55	 
	13.08 Further Assurances
	 	 	56	 
	13.09 Waiver of Certain Rights
	 	 	56	 
	13.10 Counterparts
	 	 	56	 
	13.11 Fair Market Value Determination
	 	 	56	 

EXHIBIT:

          A — Members

-ii-

 

SECOND AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

GULFSTREAM NATURAL GAS SYSTEM, L.L.C.

A Delaware Limited Liability Company

     This SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF GULFSTREAM NATURAL GAS
SYSTEM, L.L.C., (this “Agreement”), dated as of February 28, 2007 (the “Effective Date”), is
adopted, executed and agreed to, for good and valuable consideration, by SPECTRA ENERGY SOUTHEAST
PIPELINE CORPORATION (f/k/a Duke Energy Southeast Pipeline Corporation), a Delaware corporation
(“SESP”), and WGP GULFSTREAM PIPELINE COMPANY, L.L.C., a Delaware limited liability company
(“WGPG”).

RECITALS

     1. ANR Gulfstream, L.L.C., a Delaware limited liability company (“ANRG”), and Coastal Southern
Pipeline Company, a Delaware corporation (“Coastal Southern”), formed Gulfstream Natural Gas
System, L.L.C. by filing a Certificate of Formation with the Secretary of State of Delaware (the
“Delaware Certificate”) as initial members of the Company.

     2. On February 1, 2001, SESP and WGPG acquired the entire Membership Interest (as hereinafter
defined) of ANRG and Coastal Southern, comprising all of the Membership Interests in the Company,
and SESP and WGPG entered into an Amended and Restated Limited Liability Company Agreement of the
Company, dated February 1, 2001, as amended October 28, 2003 (the “LLC Agreement”).

     3. SESP holds a Membership Interest in the Company having a Sharing Ratio (as hereinafter
defined) of 50% and WGPG holds a Membership Interest in the Company having a Sharing Ratio of 50%.

     4. SESP and WGPG desire to amend and restate the LLC Agreement as provided herein and the
terms of this Agreement shall hereafter govern the business and management of the Company.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, SESP and WGPG hereby agree that the LLC Agreement is hereby amended and
restated in its entirety, as follows:

ARTICLE 1 DEFINITIONS

     1.01 Definitions. As used in this Agreement, the following terms have the respective meanings
set forth below or set forth in the Sections referred to below:

     AAA - Section 11.03(b).

     Acquisition Capital Opportunity - a Capital Opportunity to acquire facilities from
another Person, rather than to construct such facilities.

1

 

     Act - the Delaware Limited Liability Company Act.

     Additional Contribution - Section 4.06(a).

     Additional Contribution Member - Section 4.06(a).

     Affiliate - with respect to any Person, (a) each entity that such Person Controls; (b)
each Person that Controls such Person, including, in the case of a Member, such Member’s
Parent; and (c) each entity that is under common Control with such Person, including, in the
case of a Member, each entity that is Controlled by such Member’s Parent; provided, with
respect to any Member, an Affiliate shall include (y) a limited partnership or a Person
Controlled by a limited partnership if a general partner of such limited partnership is
Controlled by such Member’s Parent, or (z) a limited liability company or a Person
controlled by a limited liability company if the managing member of the limited liability
company is Controlled by such Member’s Parent; provided further, for purposes of this
Agreement the Company shall not be an Affiliate of any Member.

     Affiliate’s Outside Activities - Section 6.04(b).

     Affirmative Acquisition Vote - Section 7.03(c).

     Affirmative Construction Vote - an affirmative vote of the Management Committee to
commit the Company to construct any Construction Capital Opportunity.

     AFUDC - allowance for funds used during construction.

     Agreement - introductory paragraph.

     Alternate Representative - Section 6.02(a)(i).

     ANRG - Recital 1.

     Appraisal Committee - Section 13.11(c).

     Approved Precedent Agreement - an agreement between the Company and a prospective
shipper of natural gas through the Facilities that involves the commitment by such shipper
to pay demand charges in return for a firm transportation obligation on the part of the
Company, in each case subject to the satisfaction of one or more conditions precedent, and
that has been approved by an affirmative vote of the Management Committee.

     Arbitration Notice - Section 11.02(c).

     Arbitrator - Section 11.03(a).

     Assignee - any Person that acquires a Membership Interest or any portion thereof
through a Disposition; provided, however, that, an Assignee shall have no right to be
admitted to the Company as a Member except in accordance with Section 3.03(b)(iii).

2

 

Subject
to the Preferential Right set forth in Section 3.03(b), the Assignee of a dissolved
Member is the shareholder, partner, member or other equity owner or owners of the dissolved
Member to whom such Member’s Membership Interest is assigned by the Person conducting the
liquidation or winding-up of such Member. The Assignee of a Bankrupt Member is (a) the
Person or Persons (if any) to whom such Bankrupt Member’s Membership Interest is assigned by
order of the bankruptcy court or other Governmental Authority having jurisdiction over such
Bankruptcy, or (b) in the event of a general assignment for the benefit of creditors, the
creditor to which such Membership Interest is assigned.

     Authorizations - licenses, certificates, permits, orders, approvals, determinations and
authorizations from Governmental Authorities having valid jurisdiction.

     Available Cash - with respect to any Quarter ending prior to the dissolution or
liquidation of the Company, and without duplication:

     (a) the sum of all cash and cash equivalents of the Company on hand at the end of such
Quarter, less

     (b) the amount of any cash reserves that is necessary or appropriate in the reasonable
discretion of the Management Committee to (i) provide for the proper conduct of the business
of the Company (including reserves for future maintenance capital expenditures and for
anticipated future credit needs of the Company) subsequent to such Quarter or (ii) comply
with applicable law or any loan agreement, security agreement, mortgage, debt instrument or
other agreement or obligation to which the Company is a party or by which it is bound or its
assets are subject; provided, however, that distributions made by the
Company or cash reserves established, increased or reduced after the end of such Quarter but
on or before the date of determination of Available Cash with respect to such Quarter shall
be deemed to have been made, established, increased or reduced, for purposes of determining
Available Cash, within such Quarter if the Management Committee so determines.

     Notwithstanding the foregoing, “Available Cash” with respect to the Quarter in which a
liquidation or dissolution of the Company occurs and any subsequent Quarter shall be deemed
to equal zero.

     Bankruptcy or Bankrupt - with respect to any Person, that (a) such Person (i) makes a
general assignment for the benefit of creditors; (ii) files a voluntary bankruptcy petition;
(iii) becomes the subject of an order for relief or is declared insolvent in any federal or
state bankruptcy or insolvency proceedings; (iv) files a petition or answer seeking for such
Person a reorganization, arrangement, composition, readjustment, liquidation, dissolution,
or similar relief under any Law; (v) files an answer or other pleading admitting or failing
to contest the material allegations of a petition filed against such Person in a proceeding
of the type described in subclauses (i) through (iv) of this clause (a); or (vi) seeks,
consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of such
Person or of all or any substantial part of such Person’s properties; or (b) against such
Person, a proceeding seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any Law has been commenced and 120 Days
have expired without dismissal thereof or with respect to which, without such Person’s
consent or acquiescence, a trustee, receiver, or liquidator of such Person or of all or any
substantial part of such Person’s

3

 

properties has been appointed and 90 Days have expired without the appointment’s having been
vacated or stayed, or 90 Days have expired after the date of expiration of a stay, if the
appointment has not previously been vacated.

     Bartow Project - the expansion from an interconnection with the Company’s existing Line
No. 200 in Tampa Bay, Florida to an interconnection with Florida Power Corporation d/b/a
Progress Energy Florida, Inc.’s Bartow Plant, consisting of approximately 20 miles of
30-inch pipeline, approximately 45,000 horsepower of compression at two locations at the
Company’s Stations 100 and 200, and associated metering and regulation facilities.

     Breaching Member - a Member that (a) has committed a failure or breach of the type
described in the definition of “Default,” (b) has received a notice of the type described in
such definition of “Default,” and (c) has not cured such failure or breach, but as to which
the applicable cure period set forth in such definition of “Default” has not yet expired.

     Business Day - any day other than a Saturday, a Sunday, or a holiday on which national
banking associations in the State of Texas are closed.

     Buy-out Right - Section 3.03(b)(vi)(A).

     Capital Account - the account maintained by the Company for each Member in accordance
with the LLC Agreement and to be maintained by the Company for each Member from and after
the Effective Date in accordance with Section 4.05.

     Capital Budget - the annual capital budget for the Company that is approved (or deemed
approved) pursuant to Section 6.02(i)(iii)(B). The Capital Budget shall cover all items
that are classified as capital items under Required Accounting Practices, but it shall not
include Capital Opportunities.

     Capital Call - Section 4.01(a).

     Capital Contribution - with respect to any Member, the amount of money and the net
agreed value of any property (other than money) contributed to the Company by the Member.
Any reference in this Agreement to the Capital Contribution of a Member shall include a
Capital Contribution of its predecessors in interest.

     Capital Opportunity - a business opportunity to construct or acquire facilities in
order (a) to modify, improve, expand or increase the capacity of the Facilities, or any
portion thereof, after the applicable Affirmative Construction Vote for any Construction
Capital Opportunity or after the applicable Affirmative Acquisition Vote (except in
connection with customary or emergency repairs, replacements or maintenance), including
looping or adding compression, or (b) to provide a new point of delivery or receipt of
natural gas for the Facilities, including lateral pipelines or extensions except for minor
taps that are fully reimbursable by a third party.

     Certified Public Accountants - a firm of independent public accountants selected from
time to time by the Management Committee.

4

 

     Change Exercise Notice - Section 3.03(b)(vi)(A).

          Change of Member Control - with respect to any Member, an event (such as a Disposition
of voting securities or other equity interests) that causes such Member to cease to be
Controlled by such Member’s then Parent; provided, however, that the term “Change of Member
Control” shall not include any of the following events:

     (a) an event that causes such Member’s then Parent to be Controlled by another
Person;

     (b) an event that involves the Disposition of voting securities or other equity
interests of such Member but also involves the Disposition of other assets having a
greater value than the larger of (i) the fair market value of such Member’s
Membership Interest or (ii) the Sharing Ratio of such Member times $400 million;

     (c) an event that involves the Disposition of voting securities or other equity
interests of a Person that Controls such Member if such Person also owns assets
(other than the voting securities or other equity interests of such Member) that
have a greater value than the larger of (i) the fair market value of such Member’s
Membership Interest or (ii) the Sharing Ratio of such Member times $400 million;

     (d) a Deemed Membership Disposition or a Disposition that is covered by the
terms of Section 3.03(b)(ii);

     (e) in the case of a Member that is a publicly traded partnership or is
Controlled by a publicly traded partnership, any Disposition of or issuance of new
units representing limited partner interests by such publicly traded partnership,
whether to an Affiliate or an unrelated party and whether or not such units or
interests are listed on a national securities exchange or quotation service; and

     (f) the spin-off transaction that was concluded on or about January 1, 2007,
by Duke Energy Corporation that resulted in Spectra Energy Corp being the Parent of
SESP.

     Change Purchasing Member - Section 3.03(b)(vi)(A).

     Change Unexercised Portion - Section 3.03(b)(vi)(A).

     Changing Member - Section 3.03(b)(vi)(A).

     Claim - any and all judgments, claims, causes of action, demands, lawsuits, suits,
proceedings, Governmental investigations or audits, losses, assessments, fines, penalties,
administrative orders, obligations, costs, expenses, liabilities and damages (whether
actual, consequential or punitive), including interest, penalties, reasonable attorney’s
fees, disbursements and costs of investigations, deficiencies, levies, duties, imposts,
remediation and cleanup costs, and natural resources damages.

     Coastal Southern – Recital 1.

5

 

     Code - the Internal Revenue Code of 1986.

     COM Agreement – Section 6.03(a).

     Company – Gulfstream Natural Gas System, L.L.C.

     Confidential Information - information and data (including all copies thereof) that is
furnished or submitted by any of the Members, their Affiliates, or GMOS, whether oral,
written, or electronic, to the other Members, their Affiliates, or GMOS in connection with
the Facilities and the resulting information and data obtained from those studies, including
market evaluations, market proposals, service designs and pricing, pipeline system design
and routing, cost estimating, rate studies, identification of permits, strategic plans,
legal documents, environmental studies and requirements, public and governmental relations
planning, identification of regulatory issues and development of related strategies, legal
analysis and documentation, financial planning, gas reserves and deliverability data,
studies of the natural gas supplies for the Facilities, and other studies and activities to
determine the potential viability of the Facilities and their design characteristics, and
identification of key issues. Notwithstanding the foregoing, the term “Confidential
Information” shall not include any information that:

     (a) is in the public domain at the time of its disclosure or thereafter, other
than as a result of a disclosure directly or indirectly by a Member or its
Affiliates or GMOS in contravention of this Agreement;

     (b) as to any Member or its Affiliates or GMOS, was in the possession of such
Member or its Affiliates or GMOS prior to the execution of the Confidentiality
Agreements or any other Prior Agreement; or

     (c) has been independently acquired or developed by a Member or its Affiliates
or GMOS without violating any of the obligations of such Member or its Affiliates or
GMOS under the Confidentiality Agreements, any other Prior Agreement, the COM
Agreement or this Agreement.

     Construction Capital Opportunity - a Capital Opportunity to construct facilities,
rather than to acquire such facilities from another Person.

     Contract Decision - Section 6.04(c).

     Contributing Member - Section 4.06(a).

     Control - the possession, directly or indirectly, through one or more intermediaries,
of the following:

     (a) (i) in the case of a corporation, 50% or more of the outstanding voting
securities thereof; (ii) in the case of a limited liability company, partnership,
limited partnership or venture, the right to 25% or more of the distributions
therefrom
(including liquidating distributions); (iii) in the case of a trust or estate,
including a

6

 

business trust, 50% or more of the beneficial interest therein; and (iv)
in the case of any other entity, 50% or more of the economic or beneficial interest
therein; provided, however, in the case of a limited partnership, “Control” shall
mean possession, directly or indirectly through one or more intermediaries, of, (A)
in the case where the general partner of such limited partnership is a corporation,
ownership of 50% or more of the outstanding voting securities of such corporate
general partner, (B) in the case where the general partner of such limited
partnership is a partnership, limited liability company or other entity (other than
a corporation or limited partnership), the right to 25% or more of the distributions
from such general partner entity, and (C) in the case where the general partner of
such limited partnership is a limited partnership, Control of the general partner of
such general partner in the manner described under clause (A) or (B), in each case,
notwithstanding that the Person with respect to which Control is being determined
does not possess, directly or indirectly through one or more subsidiaries, the right
to receive at least 25% of the distributions from such limited partnership; and

     (b) in the case of any entity, the power or authority, through ownership of
voting securities, by contract or otherwise, to exercise predominant control over
the management of the entity.

     Control Notice - Section 3.03(b)(vi).

     Cost -with respect to the Initial Facilities or any Capital Opportunity, the sum of all
costs and expenses, including AFUDC, and borne by the Company for the acquisition, business
development, planning, design, engineering, financing, marketing, permitting, construction
and other activities required for start-up of the Initial Facilities or Capital Opportunity
(as applicable), and securing all Authorizations required therefor.

     Day - a calendar day; provided, however, that, if any period of Days referred to in
this Agreement shall end on a Day that is not a Business Day, then the expiration of such
period shall be automatically extended until the end of the first succeeding Business Day.

     Deemed Membership Disposition - with respect to any Membership Interest that is owned
by a Person that owns no assets other than such Membership Interest and assets that are
directly related thereto, a Disposition of all of the voting securities or other equity
interests of such Person.

     Deemed Tax Disposition- Section 3.03(b)(iv)(E)(III).

     Default - with respect to any Member,

     (a) the failure of such Member to contribute, within 10 Days of the date
required, all or any portion of a Capital Contribution that such Member is required
to make as provided in this Agreement or

     (b) the failure of a Member to comply in any material respect with any of its
other agreements, covenants or obligations under this Agreement, or the failure of

7

 

any representation or warranty made by a Member in this Agreement to have been true
and correct in all material respects at the time it was made,

in each case if such breach is not cured by the applicable Member within 30 Days of its
receiving notice of such breach from any other Member (or, if such breach is not capable of
being cured within such 30-Day period, if such Member fails to promptly commence
substantial efforts to cure such breach or to prosecute such curative efforts to completion
with continuity and diligence). The Management Committee may, but shall have no obligation
to, extend the foregoing 10-Day and 30-Day periods.

     Default Rate - a rate per annum equal to the lesser of (a) a varying rate per annum
equal to the sum of (i) the prime rate as published in The Wall Street Journal, with
adjustments in that varying rate to be made on the same date as any change in that rate is
so published, plus (ii) 2% per annum, and (b) the maximum rate permitted by Law.

     Delaware Certificate – Recital 1.

     Dispose, Disposing or Disposition - with respect to any asset (including a Membership
Interest or any portion thereof), a sale, assignment, transfer, conveyance, gift, exchange
or other disposition of such asset, whether such disposition be voluntary, involuntary or by
operation of Law, including the following: (a) in the case of an asset owned by a natural
person, a transfer of such asset upon the death of its owner, whether by will, intestate
succession or otherwise; (b) in the case of an asset owned by an entity, (i) a merger or
consolidation of such entity (other than where such entity is the survivor thereof), (ii) a
conversion of such entity into another type of entity, or (iii) a distribution of such
asset, including in connection with the dissolution, liquidation, winding-up or termination
of such entity (unless, in the case of dissolution, such entity’s business is continued
without the commencement of liquidation or winding-up); and (c) a disposition in connection
with, or in lieu of, a foreclosure of an Encumbrance; but such terms shall not include the
creation of an Encumbrance.

     Disposing Member - Section 3.03(b)(ii)(A).

     Disposition Notice - Section 3.03(b)(ii)(A).

     Dispute - Section 11.01.

     Disputing Member - Section 11.01.

     Dissolution Event - Section 12.01.

     Effective Date - introductory paragraph.

     Encumber, Encumbering, or Encumbrance - the creation of a security interest, lien,
pledge, mortgage or other encumbrance, whether such encumbrance be voluntary, involuntary or
by operation of Law.

8

 

     Estimated Cost -with respect to the Initial Facilities or any Capital Opportunity, the
estimated Cost thereof, as determined pursuant to Section 7.02(b) or 7.03(a), as applicable.

     Exercise Notice - Section 3.03(b)(ii)(A).

     Facilities - (a) the Initial Facilities and (b) any Capital Opportunities that are
approved by the Management Committee and constructed or acquired in accordance with Section
7.02 or 7.03 (as applicable).

     Fair Market Value - (a) the fair market cash value of the Membership Interest of the
Changing Member as determined pursuant to the terms of Section 13.11(b), or (b) the fair
market cash value of the consideration to be paid to the Disposing Member pursuant to the
proposed Disposition as determined pursuant to the terms of Section 13.11(a), as applicable.

     FERC - the Federal Energy Regulatory Commission or any Governmental Authority
succeeding to the powers of such commission.

     FERC Application - the document pursuant to which application for a certificate(s) of
public convenience and necessity is made under Section 7 of the NGA to the FERC by the
Company for authority to construct, own, acquire and operate, and provide service on, the
Initial Facilities or the facilities related to any Capital Opportunity (as applicable),
including any applicable amendment thereof.

     FERC Certificate - the certificate(s) of public convenience and necessity issued by the
FERC pursuant to any FERC Application.

     FERC Response Date - 30 Days following the date upon which the FERC has issued the
applicable FERC Certificate.

     Financing Commitment - definitive agreements between one or more financial institutions
or other Persons and the Company or the Financing Entity pursuant to which such financial
institutions or other Persons agree, subject to the conditions set forth therein, to lend
money to, or purchase securities of, the Company or the Financing Entity, the proceeds of
which shall be used to finance all or a portion of the Initial Facilities or any Capital
Opportunity (as applicable).

     Financing Entity - a corporation, limited liability company, trust or other entity that
may be organized for the purpose of issuing securities, the proceeds from which are to be
advanced directly or indirectly to the Company to finance all or a portion of the Initial
Facilities or any Capital Opportunity (as applicable).

     First Side - Section 13.11(c).

     FMV Notice - Section 13.11(c).

     Gas Transportation Service Agreements - the gas transportation service agreements by
and between the Company or its designee and the Shippers for the transportation of natural
gas through the Initial Facilities or any Capital Opportunity (as applicable).

9

 

     GMOS – Gulfstream Management & Operating Services, L.L.C., a Delaware limited liability
company.

     Governmental Authority (or Governmental) — a federal, state, local or foreign
governmental authority; a state, province, commonwealth, territory or district thereof; a
county or parish; a city, town, township, village or other municipality; a district, ward or
other subdivision of any of the foregoing; any executive, legislative or other governing
body of any of the foregoing; any agency, authority, board, department, system, service,
office, commission, committee, council or other administrative body of any of the foregoing;
including the FERC, any court or other judicial body; and any officer, official or other
representative of any of the foregoing.

     including — including, without limitation.

     Indebtedness of the Company - indebtedness for borrowed money owed by the Company.

     Initial Facilities — include: (i) the Phase I facilities as approved by FERC on March
28, 2002 in Docket No. CP00-6-003 (98 ¶ FERC 61,349 (2002)), which were constructed and
placed into service on May 28, 2002; (ii) Line 500 and that portion of Line 700 of the Phase
II facilities approved by FERC on March 28, 2002 in Docket No. CP00-6,003 (98 ¶ FERC 61,349
(2002)) necessary to reach Florida Power & Light Company’s Martin Plant in Martin County,
Florida (the “Martin Plant”); and (iii) any associated lateral facilities extending from
Line 700 necessary to extend to the Martin Plant which have not yet been approved by FERC.

     In-Service Date - the date of the placing of the Initial Facilities in service.
Promptly after such date, GMOS shall notify the Members of its occurrence.

     Law - any applicable constitutional provision, statute, act, code (including the Code),
law, regulation, rule, ordinance, order, decree, ruling, proclamation, resolution, judgment,
decision, declaration, or interpretative or advisory opinion or letter of a Governmental
Authority having valid jurisdiction.

     LLC Agreement – Recital 2.

     Majority Interest - Section 6.02(f)(i)(D).

     Management Committee - Section 6.02.

     MDth - one thousand dekatherms.

     Matured Financing Obligation – the Company’s debt for borrowed money (including any
related interest, costs, fees, hedge unwind costs or other repayment obligations) that has
become due (including by acceleration or any full or partial mandatory prepayment thereof)
under any Financing Commitment.

10

 

     Member - any Person executing this Agreement as of the date of this Agreement as a
member or hereafter admitted to the Company as a member as provided in this Agreement, but
such term does not include any Person who has ceased to be a member in the Company.

     Membership Interest - with respect to any Member, (a) that Member’s status as a Member;
(b) that Member’s share of the income, gain, loss, deduction and credits of, and the right
to receive distributions from, the Company; (c) any Priority Interest to which that Member
is entitled pursuant to Section 4.06(b); (d) all other rights, benefits and privileges
enjoyed by that Member (under the Act, this Agreement, or otherwise) in its capacity as a
Member, including that Member’s rights to vote, consent and approve and otherwise to
participate in the management of the Company, including through the Management Committee;
and (e) all obligations, duties and liabilities imposed on that Member (under the Act, this
Agreement or otherwise) in its capacity as a Member, including any obligations to make
Capital Contributions.

     Necessary Regulatory Approvals - all Authorizations as may be required (but excluding
Authorizations of a nature not customarily obtained prior to commencement of construction of
facilities) in connection with (a) the formation of the Company and the construction,
acquisition and operation of the Initial Facilities or any Capital Opportunity (as
applicable), and (b) the transportation of the natural gas to be transported under the
applicable Gas Transportation Service Agreements through the Initial Facilities or any
Capital Opportunity (as applicable), including (in each case) the applicable FERC
Certificate.

     NGA - the Natural Gas Act.

     Non-Contributing Member - Section 4.06(a).

     Officer - any Person designated as an officer of the Company as provided in Section
6.02(k), but such term does not include any Person who has ceased to be an officer of the
Company.

     LLC Agreement - Recital 1.

     Operating Budget - the annual operating budget for the Company that is approved (or
deemed approved) pursuant to Section 6.02(i)(iii)(B). The Operating Budget shall cover all
items that are classified as non-capital items under Required Accounting Practices, but it
shall not include any such items that are attributable to Capital Opportunities.

     Parent - the Person that Controls a Member and that is not itself Controlled by any
other Person. The Parents of the initial Members as of the Effective Date are set forth in
Exhibit A. Exhibit A shall be promptly updated by a Member upon any change to the identity
of such Member’s Parent.

     Person - the meaning assigned that term in Section 18-101(11) of the Act and also
includes a Governmental Authority and any other entity.

11

 

     Phase II - the pipeline facilities described as “Phase II” in the Order Amending
Certificate issued by the FERC on October 8, 2003 in Docket No. CP00-6-010 (105 F.E.R.C. ¶
61,052).

     Phase III - the proposed expansion to extend the existing Gulfstream facilities from a
location near the terminus of the existing Phase II facilities approved in FERC Docket No.
CP00-6 et. al. and CP04-9 to Florida Power & Light Company’s proposed West County Energy
Center in Palm Beach County, Florida, consisting of approximately 35-miles of 30-inch
pipeline and associated metering and regulations facilities.

     Preferential Right - Section 3.03(b)(ii)(A).

     Priority Interest - the special distribution rights under Section 4.06(b) received by
each Additional Contribution Member, which rights include the right to receive the return
described in Section 4.06(b)(i) and which form part of the Additional Contribution Member’s
Membership Interest.

     Priority Interest Sharing Ratio - Section 4.06(b).

     PUHCA - the Public Utility Holding Company Act of 1935.

     PUHCA Event - Section 3.02(d).

     Purchasing Member - Section 3.03(b)(ii)(A).

     Quarter - unless the context requires otherwise, a fiscal quarter of the Company.

     Reimbursable Costs - with respect to a Person, the sum of (a) Third Person Expenses
paid by such Person, and (b) the fully-burdened costs of all employees of such Person and
its Affiliates utilized to perform the applicable services, provided that the Management
Committee shall determine the procedures and methodology to be utilized to determine such
costs, and the same procedures and methodology shall be used for all Members and their
Affiliates.

     Representative - Section 6.02(a)(i).

     Required Accounting Practices - the accounting rules and regulations, if any, at the
time prescribed by the Governmental Authorities under the jurisdiction of which the Company
is at the time operating and, to the extent of matters not covered by such rules and
regulations, generally accepted accounting principles as practiced in the United States at
the time prevailing for companies engaged in a business similar to that of the Company.

     SEC - the Securities and Exchange Commission or any Governmental Authority succeeding
to the powers of such commission under PUHCA.

     Second Notice - Section 13.11(c).

     Second Side - Section 13.11(c).

12

 

     Securities Act - the Securities Act of 1933.

     SEGT – Spectra Transmission Corporation (f/k/a Duke Energy Gas Transmission
Corporation).

     Services
Agreement – as defined in the COM Agreement.

     SESP - introductory paragraph.

     Sharing Ratio - subject in each case to adjustments in accordance with this Agreement
or in connection with Dispositions of Membership Interests, (a) in the case of a Member
executing this Agreement as of the date of this Agreement or a Person acquiring such
Member’s Membership Interest, the percentage specified for that Member as its Sharing Ratio
on Exhibit A, and (b) in the case of Membership Interests issued pursuant to Section 3.04,
the Sharing Ratio established pursuant thereto; provided, however, that the total of all
Sharing Ratios shall always equal 100%.

     Shippers - those Persons that have entered into Gas Transportation Service Agreements
(or, where applicable, a precedent agreement relating thereto).

     Sole Discretion - Section 6.02(f)(ii).

     Supermajority Interest - Section 6.02(f)(i)(C).

     Tax Matters Member - Section 8.03(a).

     Term - Section 2.06.

     Third Person Expenses - the expenses paid by the Person involved to other Persons who
are not Affiliates in connection with the performance of the applicable services.

     Treasury Regulations - the regulations (including temporary regulations) promulgated by
the United States Department of the Treasury pursuant to and in respect of provisions of the
Code. All references herein to sections of the Treasury Regulations shall include any
corresponding provision or provisions of succeeding, similar or substitute, temporary or
final Treasury Regulations.

     Ultramajority Interest - Section 6.02(f)(i)(B).

     Unanimous Interest - Section 6.02(f)(i)(A).

     Unexercised Portion - Section 3.03(b)(ii)(A).

     WGPG - introductory paragraph.

     West County Energy Center Project - the Company’s Phase III project which is described
in the Company’s application to amend its certificate of public convenience and

13

 

necessity in
FERC Docket No. CP00-6-014, as amended from time to time, pursuant to which the Company will
construct approximately 35 miles of 30-inch pipeline in Martin County, Florida and Palm
Beach County, Florida to connect the Company’s existing Facilities to Florida Power & Light
Company’s West County Energy Center in Palm Beach County, Florida.

     Williams – Williams Gas Pipeline Company, LLC.

     Withdraw, Withdrawing or Withdrawal - the withdrawal, resignation or retirement of a
Member from the Company as a Member. Such terms shall not include any Dispositions of
Membership Interest (which are governed by Sections 3.03(a) and (b)), even though the Member
making a Disposition may cease to be a Member as a result of such Disposition.

     Withdrawn Member - Section 10.03.

Other terms defined herein have the meanings so given them.

     1.02 Interpretation. Unless the context requires otherwise: (a) the gender (or lack of
gender) of all words used in this Agreement includes the masculine, feminine, and neuter; (b)
references to Articles and Sections refer to Articles and Sections of this Agreement; (c)
references to Exhibits refer to the Exhibits attached to this Agreement, each of which is made a
part hereof for all purposes; (d) references to Laws refer to such Laws as they may be amended from
time to time, and references to particular provisions of a Law include any corresponding provisions
of any succeeding Law; and (e) references to money refer to legal currency of the United States of
America.

ARTICLE 2

ORGANIZATION

     2.01 Formation. The Company has been organized as a Delaware limited liability company by the
filing of the Delaware Certificate as of May 17, 1999.

     2.02 Name. The name of the Company is “Gulfstream Natural Gas System, L.L.C.” and all Company
business must be conducted in that name or such other names that comply with Law as the Management
Committee may select.

     2.03 Registered Office; Registered Agent; Principal Office in the United States; Other
Offices. The registered office of the Company required by the Act to be maintained in the State of
Delaware shall be the office of the initial registered agent named in the Delaware Certificate or
such other office (which need not be a place of business of the Company) as the Management
Committee may designate in the manner provided by Law. The registered agent of the Company in the
State of Delaware shall be the initial registered agent named in the Delaware Certificate or such
other Person or Persons as the Management Committee may designate in the manner provided by Law.
The principal office of the Company in the United States shall be at such place as the Management
Committee may designate, which need not be in the State of Delaware, and the Company shall maintain
records there or such other place as the Management Committee shall designate and shall keep the
street address of such principal office at the registered office of the Company in the State of

14

 

Delaware. The Company may have such other offices as the Management Committee may designate.

     2.04 Purposes. The purposes of the Company are to plan, design, construct, acquire, own,
maintain and operate the Facilities, to market the services of the Facilities, to engage in the
transmission of natural gas through the Facilities, and to engage in any activities directly or
indirectly relating thereto; provided, however, that the Members determine, as of the date of the
commencement of any such activities, that such activity (a) generates “qualifying income” (as such
term is defined pursuant to Section 7704 of the Code) or (b) enhances the operation of an activity
of the Company that generates qualifying income.

     2.05 Foreign Qualification. Prior to the Company’s conducting business in any jurisdiction
other than Delaware, the Management Committee shall cause the Company to comply, to the extent
procedures are available and those matters are reasonably within the control of the Management
Committee, with all requirements necessary to qualify the Company as a foreign limited liability
company in that jurisdiction. At the request of the Management Committee, each Member shall
execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with
this Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as
a foreign limited liability company in all such jurisdictions in which the Company may conduct
business.

     2.06 Term. The period of existence of the Company (the “Term”) commenced on May 17, 1999 and
shall end at such time as a certificate of cancellation is filed with the Secretary of State of
Delaware in accordance with Section 12.04.

ARTICLE 3

MEMBERSHIP; DISPOSITIONS OF INTERESTS

     3.01 Current Members. As of the Effective Date, SESP and WGPG are the Members of the Company.

     3.02 Representations, Warranties and Covenants. Each Member hereby represents, warrants and
covenants to the Company and each other Member that the following statements are true and correct
as of the Effective Date and shall be true and correct at all times that such Member is a Member:

     (a) that Member is duly incorporated, organized or formed (as applicable), validly
existing, and (if applicable) in good standing under the Law of the jurisdiction of its
incorporation, organization or formation; if required by applicable Law, that Member is duly
qualified and in good standing in the jurisdiction of its principal place of business, if
different from its jurisdiction of incorporation, organization or formation; and that Member
has full power and authority to execute and deliver this Agreement and to perform its
obligations hereunder, and all necessary actions by the board of directors, shareholders,
managers, members, partners, trustees, beneficiaries, or other applicable Persons necessary
for the due authorization, execution, delivery, and performance of this Agreement by that
Member have been duly taken;

15

 

     (b) that Member has duly executed and delivered this Agreement and the other documents
contemplated herein, and they constitute the legal, valid and binding obligation of that
Member enforceable against it in accordance with their terms (except as may be limited by
bankruptcy, insolvency or similar Laws of general application and by the effect of general
principles of equity, regardless of whether considered at law or in equity);

     (c) that Member’s authorization, execution, delivery, and performance of this Agreement
does not and will not (i) conflict with, or result in a breach, default or violation of, (A)
the organizational documents of such Member, (B) any contract or agreement to which that
Member is a party or is otherwise subject, or (C) any Law, order, judgment, decree, writ,
injunction or arbitral award to which that Member is subject; or (ii) require any consent,
approval or authorization from, filing or registration with, or notice to, any Governmental
Authority or other Person, unless such requirement has already been satisfied; and

     (d) that Member is exempt from, or is not subject to, regulation as a “holding company”
or a “subsidiary company” of a “holding company” or an “affiliate” of a “holding company,”
in each case as such term is defined in PUHCA; provided, however, that, if the statements in
this Section 3.02(d) cease to be true and correct as to a Member (a “PUHCA Event”), such
PUHCA Event shall not constitute a Default with respect to such Member or cause such Member
to have withdrawn from the Company pursuant to Section 10.02(b) if (i) such Member submits,
within five Business Days after such PUHCA Event, a good-faith application to the SEC under
PUHCA, and (ii) such application has the effect of exempting all other Members, all
“affiliates” (as defined in PUHCA) of such other Members, and the Company from any
obligation, duty, or liability under PUHCA; and provided further that, if the SEC denies the
Member’s application, such PUHCA Event shall constitute a Default with respect to such
Member and shall cause such Member to have withdrawn from the Company pursuant to, and
subject to the terms of, Section 10.02(b).

     3.03 Dispositions and Encumbrances of Membership Interests.

     (a) General Restriction. A Member may not Dispose of or Encumber all or any portion of its
Membership Interest except in strict accordance with this Section 3.03. References in this Section
3.03 to Dispositions or Encumbrances of a “Membership Interest” shall also refer to
Dispositions or Encumbrances of a portion of a Membership Interest. Any attempted Disposition or
Encumbrance of a Membership Interest, other than in strict accordance with this Section 3.03, shall
be, and is hereby declared, null and void ab initio. The rights and obligations constituting a
Membership Interest may not be separated, divided or split from the other attributes of a
Membership Interest except as contemplated by the express provisions of this Agreement. The
Members agree that a breach of the provisions of this Section 3.03 may cause irreparable injury to
the Company and to the other Members for which monetary damages (or other remedy at law) are
inadequate in view of (i) the complexities and uncertainties in measuring the actual damages that
would be sustained by reason of the failure of a Member to comply with such provision and (ii) the
uniqueness of the Company business and the relationship among the Members. Accordingly, the
Members agree that the provisions of this Section 3.03 may be enforced by specific performance
pursuant to Section 11.04(b).

16

 

     (b) Dispositions of Membership Interests.

     (i) General Restriction. A Member may not Dispose of its Membership Interest except by
complying with all of the following requirements: (A) such Member must offer the other
Members the right to acquire such Membership Interest in accordance with Section
3.03(b)(ii), unless the proposed Assignee is an Affiliate of the Disposing Member or the
other Members consent to the Disposition to such Assignee, which consent may be granted or
withheld in the Sole Discretion of each Member; (B) such Member must comply with the
requirements of Section 3.03(b)(iv) and, if the Assignee is to be admitted as a Member,
Section 3.03(b)(iii); and (C), unless the proposed Assignee is an Affiliate of the Disposing
Member, the Disposition must comply with the following minimum size requirements: (I) if
such Member’s Sharing Ratio is less than 20%, the Disposition must include all of the
Member’s Membership Interest, and (II) if such Member’s Sharing Ratio is 20% or more, but
such Member does not propose to Dispose of all of its Membership Interest, the Disposition
must be of a Membership Interest having a Sharing Ratio of at least 10% and must be of an
amount such that such Member will retain a Sharing Ratio of at least 10%.

     (ii) Preferential Purchase Right.

     (A) Procedure. If a Member at any time desires to consummate a bona fide
transaction that will result in the Disposition of all or a portion of its
Membership Interest (whether or not the proposed Disposition is to another Member),
then such Member (the “Disposing Member”) shall promptly give notice thereof (the
“Disposition Notice”) to the Company and the other Members; provided, however, that
this Section 3.03(b)(ii) shall not apply to a Disposition to an Affiliate of the
Disposing Member. The Disposition Notice shall set forth all relevant information
with respect to the proposed Disposition, including the name and address of the
prospective acquirer, the precise Membership Interest that is the subject of the
Disposition, the price to be paid for such Membership Interest, and any other terms
and conditions of the proposed Disposition. The other Members shall have the
preferential right (“Preferential Right”) to acquire, for the same purchase price,
and on the same terms and conditions, as are set forth in the Disposition Notice,
such Membership Interest; provided, however, that, if the purchase price to be paid
to the Disposing Member pursuant to the proposed Disposition is not entirely in
cash, the
purchase price for the Members exercising the Preferential Right shall be the Fair
Market Value. Each Member (excluding the Disposing Member) shall have the right
(but not the obligation) to acquire a portion of the applicable Membership Interest
that is equal to (I) the Sharing Ratio represented by such Membership Interest times
(II) a fraction, the numerator of which is such Member’s Sharing Ratio and the
denominator of which is the total Sharing Ratios of all Members other than the
Disposing Member. Each Member (other than the Disposing Member) shall have 30 Days
following its receipt of the Disposition Notice (or if the price to be paid pursuant
to such offer is not in cash, then 30 Days following the determination of the Fair
Market Value of such Membership Interest) in which to notify the other Members
(including the Disposing Member) whether such Member desires to exercise its
Preferential Right. A notice in which a Member exercises such Preferential Right is
referred to herein as an “Exercise Notice,” and a Member that delivers an Exercise
Notice is referred to herein as a “Purchasing Member”. If the Purchasing Members
constitute less than all of the Members (other than the

17

 

Disposing Member), and
consequently, there is a portion of the Membership Interest for which such
Preferential Right has not been exercised (an “Unexercised Portion”), then each
Purchasing Member shall have 20 Days following the end of such period in which to
notify the other Purchasing Members and the Disposing Member whether it desires to
acquire the portion of the Unexercised Portion that is equal to (aa) the Sharing
Ratio represented by the Unexercised Portion times (bb) a fraction, the numerator of
which is such Purchasing Member’s Sharing Ratio and the denominator of which is the
total Sharing Ratios of all Purchasing Members. If, at the end of such 20-Day
period, there remains an Unexercised Portion, then the Purchasing Members shall have
an additional 10-Day period in which to negotiate among themselves for a
mutually-agreeable method of sharing the acquisition of the remaining Unexercised
Portion. If the Purchasing Members are able to reach such agreement during such
10-Day period, then the Preferential Right shall be deemed exercised, and the
Disposing Member and the Purchasing Members shall close the acquisition of the
Membership Interest in accordance with Section 3.03(b)(ii)(B). If, however, the
Purchasing Members are unable to reach such agreement during such 10-Day period,
then the Preferential Right shall be deemed to have been waived, and the Disposing
Member shall be free to Dispose of the entire Membership Interest in accordance with
Section 3.03(b)(ii)(C). A Member that fails to exercise a right during any
applicable period set forth in this Section 3.03(b)(ii)(A) shall be deemed to have
waived such right for the subject Disposition, but not any right for future
Dispositions.

     (B) Closing. If the Preferential Right is deemed exercised in accordance with
Section 3.03(b)(ii)(A), the closing of the purchase of the Membership Interest shall
occur at the principal place of business of the Company no later than the 60th Day
after the expiration of the last applicable period referred to in such Section
3.03(b)(ii)(A) (or, if later, the fifth Business Day after the receipt of all
applicable Authorizations to the purchase), unless the Disposing Member and the
Purchasing Members agree upon a different place or date. At the closing, (I) the
Disposing Member shall execute and deliver to the Purchasing Members (aa) an
assignment of the Membership Interest, in form and substance reasonably acceptable
to the
Purchasing Members, containing a general warranty of title as to such Membership
Interest (including that such Membership Interest is free and clear of all
Encumbrances, other than those permitted under Section 3.03(c)(ii)) and (bb) any
other instruments reasonably requested by the Purchasing Members to give effect to
the purchase; and (II) the Purchasing Members shall deliver to the Disposing Member
in immediately-available funds the purchase price provided for in Section
3.03(b)(ii)(A). The Sharing Ratios and Capital Accounts of the Members shall be
deemed adjusted to reflect the effect of the purchase.

     (C) Waiver of Preferential Right. If no Members deliver Exercise Notices or if
the Preferential Right is otherwise deemed waived pursuant to Section
3.03(b)(ii)(A), the Disposing Member shall have the right, subject to compliance
with the provisions of Sections 3.03(a) and (b), to Dispose of the Membership
Interest described in the Disposition Notice to the proposed Assignee strictly in
accordance with the terms of the Disposition Notice for a period of 60 Days after
the expiration of the last applicable period referred to in such Section

18

 

3.03(b)(ii)(A) (or, if later, the fifth Business Day after the receipt of all
applicable Authorizations to the purchase). If, however, the Disposing Member fails
so to Dispose of the Membership Interest within such 60-Day period (or, if
applicable, such fifth Business Day period), the proposed Disposition shall again
become subject to the Preferential Right.

     (iii) Admission of Assignee as a Member. An Assignee has the right to be admitted to
the Company as a Member, with the Membership Interest (and attendant Sharing Ratio) so
transferred to such Assignee, only if such Disposition is effected in strict compliance with
Sections 3.03(a) and (b).

     (iv) Requirements Applicable to All Dispositions and Admissions. In addition to the
requirements set forth in Sections 3.03(b)(i), 3.03(b)(ii) and 3.03(b)(iii), any Disposition
of a Membership Interest and any admission of an Assignee as a Member shall also be subject
to the following requirements, and such Disposition (and admission, if applicable) shall not
be effective unless such requirements are complied with; provided, however, that the
Management Committee, in its sole and absolute discretion, may waive any of the following
requirements:

     (A) Disposition Documents. The following documents must be delivered to the
Management Committee and must be satisfactory, in form and substance, to the
Management Committee:

     (I) Disposition Instrument. A copy of the instrument pursuant to which
the Disposition is effected.

     (II) Ratification of this Agreement. An instrument, executed by the
Disposing Member and its Assignee, containing the following information and
agreements, to the extent they are not contained in the instrument described
in Section 3.03(b)(iv)(A)(I): (aa) the notice address of the Assignee; (bb)
if applicable, the Parent of the Assignee; (cc) the Sharing
Ratios after the Disposition of the Disposing Member and its Assignee (which
together must total the Sharing Ratio of the Disposing Member before the
Disposition); (dd) the Assignee’s ratification of this Agreement and
agreement to be bound by it, and its confirmation that the representations
and warranties in Section 3.02 are true and correct with respect to it; and
(ee) representations and warranties by the Disposing Member and its Assignee
(AA) that the Disposition and admission is being made in accordance with all
applicable Laws, (BB) that the matters set forth in Sections
3.03(b)(iv)(A)(III) and (IV) are true and correct, and (CC) that the
Disposition and admission do not violate any Financing Commitment or any
other agreement to which the Company is a party.

     (III) Securities Law Opinion. Unless the Membership Interest subject
to the Disposition is registered under the Securities Act and any applicable
state securities Law, a favorable opinion of the Company’s legal counsel, or
of other legal counsel acceptable to the Management Committee, to the effect
that the Disposition and admission is being made pursuant to a

19

 

valid
exemption from registration under those Laws and in accordance with those
Laws; provided, however, that no such opinion shall be required in the case
of a Disposition by a Member to an Affiliate.

     (B) Payment of Expenses. The Disposing Member and its Assignee shall pay, or
reimburse the Company for, all reasonable costs and expenses incurred by the Company
in connection with the Disposition and admission, including the legal fees incurred
in connection with the legal opinion referred to in Section 3.03(b)(iv)(A)(III), on
or before the 10th Day after the receipt by that Person of the Company’s invoice for
the amount due. The Company will provide such invoice as soon as practicable after
the amount due is determined but in no event later than 90 days thereafter. If
payment is not made by the date due, the Person owing that amount shall pay interest
on the unpaid amount from the date due until paid at a rate per annum equal to the
Default Rate.

     (C) No Release. No Disposition of a Membership Interest shall effect a release
of the Disposing Member from any liabilities to the Company or the other Members
arising from events occurring prior to the Disposition.

     (D) Indebtedness of Company. Any Disposition of a Membership Interest shall
also include all of the Indebtedness owed by the Company to the Disposing Member
(or, if only a portion of a Membership Interest is being Disposed, a proportionate
share of such Indebtedness). As long as this Agreement shall remain in effect, all
evidences of Indebtedness of the Company owed to any of the Members shall bear an
appropriate legend to indicate that it is held subject to, and may be Disposed only
in accordance with, the terms and conditions of this Agreement, and that such
Disposition may be made only in conjunction with the Disposition of a proportionate
part of such Member’s Membership Interest.

     (E) Tax Partnership Transfer Limitations.

          (I) During any 12 month period the total Sharing Ratio of Dispositions
(including, without duplication, Deemed Tax Dispositions) by or with respect
to any Member shall not exceed 49.9% of the Sharing Ratio of such Member as
of the beginning of such 12 month period unless (i) the prior written
consent of the other Members shall have been obtained (which consent may be
granted or withheld in the Sole Discretion of each Member) or (ii) the
Disposition or Deemed Tax Disposition is equal to or less than a 24.95%
Sharing Ratio and when combined with the Sharing Ratios transferred (or
deemed transferred) pursuant to all other Dispositions and Deemed
Dispositions by or with respect to all Members during such 12 month period,
does not exceed 49.9% of the Sharing Ratios of all Members.

          (II) If SESP or WGPC makes a Disposition, then for a period of 25
months following the effective date of such Disposition the Assignee of such
Disposition may not make a Disposition or Deemed Tax Disposition of any part
of the Membership Interest received by such Assignee unless the prior
written consent of the other Members shall have

20

 

been obtained (which consent
may be granted or withheld in the Sole Discretion of each Member).

          (III) In connection with each such Disposition and Deemed Tax
Disposition, the Member making the Disposition or with respect to whom the
Deemed Tax Disposition applies shall give notice to the other Members of the
date of the consummation of such Disposition or Deemed Tax Disposition and
the Sharing Ratio of the Membership Interest so transferred or deemed
transferred.

          (IV) As used herein, the term “Deemed Tax Disposition” means any event
or series of events that is treated for federal income tax purposes as a
sale or exchange of a Member’s Membership Interest or portion thereof for
purposes of Section 708(b)(1)(B) of the Code.

     (v) Deemed Membership Disposition. A Deemed Membership Disposition shall be deemed to
be a Disposition of a Membership Interest and must comply with the requirements set forth in
Sections 3.03(a) and (b).

     (vi) Change of Member Control.

     (A) Procedure. In the event of a Change of Member Control, then the Member
with respect to which the Change of Member Control has occurred (the “Changing
Member”) shall promptly (and in all events within five Business Days after the
Change in Member Control) give notice thereof (the “Control Notice”) to the Company
and the other Members. If the Control Notice is not given by the Changing Member as
provided above and any other Member becomes aware of such Change of Member Control,
such other Member shall have the right to give the Control Notice to the Changing
Member, the Company and the other Members. The
other Members shall have the right (the “Buy-out Right”) to acquire the Membership
Interest of the Changing Member for the Fair Market Value thereof. Each Member
(excluding the Changing Member) shall have the right (but not the obligation) to
acquire a portion of the applicable Membership Interest that is equal to (I) the
Sharing Ratio represented by such Membership Interest times (II) a fraction, the
numerator of which is such Member’s Sharing Ratio and the denominator of which is
the total Sharing Ratios of all Members other than the Changing Member. Each Member
(other than the Changing Member) shall have 30 Days following the determination of
the Fair Market Value of such Membership Interest in which to notify the other
Members (including the Changing Member) whether such Member desires to exercise its
Buy-out Right. A notice in which a Member exercises such Buy-out Right is referred
to herein as a “Change Exercise Notice,” and a Member that delivers a Change
Exercise Notice is referred to herein as a “Change Purchasing Member”. If the
Change Purchasing Members constitute less than all of the Members (other than the
Changing Member), and consequently, there is a portion of the Membership Interest
for which such Buy-out Right has not been exercised (a “Change Unexercised
Portion”), then each Change Purchasing Member shall have 20 Days following the end
of such period in which to notify the other Change Purchasing Members and the
Changing Member whether it desires to acquire the

21

 

portion of the Change Unexercised
Portion that is equal to (aa) the Sharing Ratio represented by the Change
Unexercised Portion times (bb) a fraction, the numerator of which is such Change
Purchasing Member’s Sharing Ratio and the denominator of which is the total Sharing
Ratios of all Change Purchasing Members. If, at the end of such 20-Day period,
there remains a Change Unexercised Portion, then the Change Purchasing Members shall
have an additional 10-Day period in which to negotiate among themselves for a
mutually-agreeable method of sharing the acquisition of the remaining Change
Unexercised Portion. If the Change Purchasing Members are able to reach such
agreement during such 10-Day period, then the Buy-out Right shall be deemed
exercised, and the Changing Member and the Change Purchasing Members shall close the
acquisition of the Membership Interest in accordance with Section 3.03(b)(vi)(B).
If, however, the Change Purchasing Members are unable to reach such agreement during
such 10-Day period, then the Buy-out Right shall be deemed to have been waived. A
Member that fails to exercise a right during any applicable period set forth in this
Section 3.03(b)(vi)(A) shall be deemed to have waived such right for the subject
Change of Member Control, but not any right for future Changes of Member Control.

     (B) Closing. If the Buy-out Right is deemed exercised in accordance with
Section 3.03(b)(vi)(A), the closing of the purchase of the Membership Interest shall
occur at the principal place of business of the Company no later than the 60th Day
after the expiration of the last applicable period referred to in such Section
3.03(b)(vi)(A) (or, if later, the fifth Business Day after the receipt of all
applicable Authorizations to the purchase), unless the Changing Member and the
Change Purchasing Members agree upon a different place or date. At the closing, (I)
the Changing Member shall execute and deliver to the Change Purchasing Members (aa)
an assignment of the Membership Interest, in form and substance reasonably
acceptable to the Change Purchasing Members, containing a general warranty of title
as to such Membership Interest (including that such Membership Interest is free and
clear of all Encumbrances, other than those permitted under Section 3.03(c)(ii)) and
(bb) any other instruments reasonably requested by the Change Purchasing Members to
give effect to the purchase; and (II) the Change Purchasing Members shall deliver to
the Changing Member in immediately-available funds the purchase price provided for
in Section 3.03(b)(vi)(A). The Sharing Ratios and Capital Accounts of the Members
shall be deemed adjusted to reflect the effect of the purchase.

     (c) Encumbrances of Membership Interest. A Member may not Encumber its Membership Interest,
except by complying with one of the two following paragraphs:

     (i) (A) such Member must receive the consent of a Majority Interest of the
non-Encumbering Members (calculated without reference to the Sharing Ratio of the
Encumbering Member), which consent (as contemplated by Section 6.02(f)(ii)) may be granted
or withheld in the Sole Discretion of each such other Member; and (B) the instrument
creating such Encumbrance must provide that any foreclosure of such Encumbrance (or
Disposition in lieu of such foreclosure) must comply with the requirements of Sections
3.03(a) and (b); or

     (ii) such Encumbrance is required by the terms of a Financing Commitment.

22

 

     3.04 Creation of Additional Membership Interest. Additional Membership Interests may be
created and issued to existing Members or to other Persons, and such other Persons may be admitted
to the Company as Members, with the consent of an Ultramajority Interest, on such terms and
conditions as an Ultramajority Interest may determine at the time of admission. The terms of
admission or issuance must specify the Sharing Ratios applicable thereto and may provide for the
creation of different classes or groups of Members having different rights, powers, and duties.
Any such admission is effective only after the new Member has executed and delivered to the Members
an instrument containing the notice address of the new Member, the Assignee’s ratification of this
Agreement and agreement to be bound by it, and its confirmation that the representations and
warranties in Section 3.02 are true and correct with respect to it. The provisions of this Section
3.04 shall not apply to Dispositions of Membership Interests or admissions of Assignees in
connection therewith, such matters being governed by Sections 3.03(a) and (b).

     3.05 Access to Information. Each Member shall be entitled to receive any information that it
may request concerning the Company; provided, however, that this Section 3.05 shall not obligate
the Company, the Management Committee, or GMOS to create any information that does not already
exist at the time of such request (other than to convert existing information from one medium to
another, such as providing a printout of information that is stored in a computer database), except
as otherwise provided in Section 9.02. Each Member shall also have the right, upon reasonable
notice, and at all reasonable times during usual business hours to inspect the properties of the
Company and to audit, examine and make copies of the books of account and other records of the
Company. Such right may be exercised through any agent or employee of such Member designated in
writing by it or by an independent public accountant, engineer, attorney or other consultant so
designated. The Member making the request shall bear all costs and expenses incurred in any
inspection, examination or audit made on such
Member’s behalf. The Members and GMOS agree to reasonably cooperate, and to cause their respective
independent public accountants, engineers, attorneys or other consultants to reasonably cooperate,
in connection with any such request. Confidential Information obtained pursuant to this Section
3.05 shall be subject to the provisions of Section 3.06.

     3.06 Confidential Information. (a) Except as permitted by Section 3.06(b), (i) each Member
shall keep confidential all Confidential Information and shall not disclose any Confidential
Information to any Person, including any of its Affiliates, and (ii) each Member shall use the
Confidential Information only in connection with the Facilities and the Company.

     (b) Notwithstanding Section 3.06(a), but subject to the other provisions of this Section 3.06,
a Member may make the following disclosures and uses of Confidential Information:

     (i) disclosures to another Member or to GMOS in connection with the Company;

     (ii) disclosures and uses that are approved by the Management Committee;

     (iii) disclosures that may be required from time to time to obtain requisite
Authorizations or financing for the Initial Facilities or any proposed Capital Opportunity,
if such disclosures are approved by the Management Committee;

23

 

     (iv) disclosures to an Affiliate (that is not the Parent) of such Member, including the
directors, officers, employees, agents and advisors of such Affiliate, if such Affiliate has
agreed to abide by the terms of this Section 3.06, and special care shall be taken to
restrict such disclosures in any case where such Affiliate is or may become a Shipper or an
“Energy Affiliate” (as defined in the FERC’s Standards of Conduct for Transmission
Providers, 18 C.F.R. Part 358, Section 358.3(d));

     (v) disclosures to the Parent of such Member, including the directors, officers,
employees, agents and advisors of such Parent, if such Parent has agreed to abide by the
terms of this Section 3.06;

     (vi) disclosures to a Person that is not a Member or an Affiliate of a Member, if such
Person has been retained by the Company, a Member or GMOS to provide services in connection
with the Company and has agreed to abide by the terms of this Section 3.06;

     (vii) disclosures to a bona-fide potential direct or indirect purchaser of such
Member’s Membership Interest, if such potential purchaser has agreed to abide by the terms
of this Section 3.06;

          (viii) disclosures required, with respect to a Member or an Affiliate of a Member, pursuant to
(i) the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder,
(ii) the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder, (iii) any state securities Laws, or (iv) any national securities exchange or automated
quotation system; and

     (ix) disclosures that a Member is legally compelled to make by deposition,
interrogatory, request for documents, subpoena, civil investigative demand, order of a court
of competent jurisdiction, or similar process, or otherwise by Law; provided, however, that,
prior to any such disclosure, such Member shall, to the extent legally permissible:

     (A) provide the Management Committee with prompt notice of such requirements so
that one or more of the Members may seek a protective order or other appropriate
remedy or waive compliance with the terms of this Section 3.06(b)(ix);

     (B) consult with the Management Committee on the advisability of taking steps
to resist or narrow such disclosure; and

     (C) cooperate with the Management Committee and with the other Members in any
attempt one or more of them may make to obtain a protective order or other
appropriate remedy or assurance that confidential treatment will be afforded the
Confidential Information; and in the event such protective order or other remedy is
not obtained, or the other Members waive compliance with the provisions hereof, such
Member agrees (I) to furnish only that portion of the Confidential Information that,
in the opinion of such Member’s counsel, such Member is legally required to
disclose, and (II) to exercise all reasonable efforts to obtain assurance that
confidential treatment will be accorded such Confidential Information.

24

 

     (c) Each Member shall take such precautionary measures as may be required to ensure (and such
Member shall be responsible for) compliance with this Section 3.06 by any of its Affiliates, and
its and their directors, officers, employees and agents, and other Persons to which it may disclose
Confidential Information in accordance with this Section 3.06.

     (d) Promptly after its Withdrawal, a Withdrawn Member shall promptly destroy (and provide a
certificate of destruction to the Company with respect to), or return to the Company, all
Confidential Information in its possession. Notwithstanding the immediately-preceding sentence,
but subject to the other provisions of this Section 3.06, a Withdrawn Member may retain for a
stated period, but not disclose to any other Person, Confidential Information for the limited
purposes of (i) explaining such Member’s corporate decisions with respect to the Facilities or (ii)
preparing such Member’s tax returns and defending audits, investigations and proceedings relating
thereto; provided, however, that the Withdrawn Member must notify the Management Committee in
advance of such retention and specify in such notice the stated period of such retention.

     (e) The Members agree that no adequate remedy at law exists for a breach or threatened breach
of any of the provisions of this Section 3.06, the continuation of which unremedied will cause the
Company and the other Members to suffer irreparable harm. Accordingly, the Members agree that the
Company and the other Members shall be entitled, in addition to other remedies that may be
available to them, to immediate injunctive relief from any breach of any of the provisions of this
Section 3.06 and to specific performance of their rights hereunder, as well as to any other
remedies available at law or in equity, pursuant to Section 11.04.

     (f) The obligations of the Members under this Section 3.06 (including the obligations of any
Withdrawn Member) shall terminate on the second anniversary of the end of the Term.

     3.07 Liability to Third Parties. No Member or its Affiliates shall be liable for the debts,
obligations or liabilities of the Company.

     3.08 Use of Members’ Names and Trademarks. The Company, the Members and their Affiliates
shall not use the name or trademark of any Member or its Affiliates in connection with public
announcements regarding the Company, or marketing or financing activities of the Company, without
the prior consent of such Member or Affiliate, which shall not be unreasonably withheld.

ARTICLE 4

CAPITAL CONTRIBUTIONS

     4.01 Capital Contributions. (a) Except as otherwise provided in the following provisions of
this Section 4.01(a) and in Section 4.01(d), 4.02, 7.02 or 7.03, the Management Committee shall
issue or cause to be issued a written request to each Member for the making of Capital
Contributions at such times and in such amounts as the Management Committee shall approve (such
written request referred to herein as a “Capital Call”). Such Capital Contributions shall be made
in cash, unless a Supermajority Interest elects to request non-cash Capital Contributions. All
amounts timely received by the Company pursuant to this Section 4.01 shall be credited to the
respective Member’s Capital Account as of such specified date. As to each Capital Opportunity for
which an Affirmative Acquisition Vote or Affirmative Construction Vote shall have occurred and each
expansion project or other project covered by an Approved Precedent Agreement, no additional
approval of the Management Committee shall be required for the Capital Contributions

25

 

required to
fund such Capital Opportunity or project; rather, the Management Committee shall issue written
notices to each Member for such Capital Contributions at such times and in such amounts necessary
to fund the costs associated with the related Capital Opportunity or project in a manner consistent
with the funding of the costs associated with the expansion of the Facilities completed most
recently to the Effective Date. Each Member acknowledges that the West County Energy Center
Project and the Bartow Project each constitute a project covered by an Approved Precedent
Agreement.

     (b) Each Capital Call issued pursuant to Section 4.01(a) shall contain the following
information:

     (i) The total amount of Capital Contributions requested from all Members;

     (ii) The amount of Capital Contribution requested from the Member to whom the request
is addressed, such amount to be in accordance with the Sharing Ratio of such Member;

     (iii) The purpose for which the funds are to be applied in such reasonable detail as
the Management Committee shall direct; and

     (iv) The date on which payments of the Capital Contribution shall be made (which date
shall not be less than 30 Days following the date the Capital Call is given, unless a sooner
date is approved by the Management Committee) and the method of payment, provided that such
date and method shall be the same for each of the Members.

     (c) Each Member agrees that it shall make payments of its respective Capital Contributions in
accordance with Capital Calls issued pursuant to Section 4.01(a).

     (d) In addition to the authority granted the Management Committee in Section 4.01(a) to issue
Capital Calls, if within thirty (30) days prior to the date any Matured Financing Obligation is to
become due (or within fifteen (15) days after any notice of acceleration of any Matured Financing
Obligation received prior to the maturity date thereof), (i) the Management Committee has not made
a Capital Call for the payment of such amount that is (or is expected to be) a Matured Financing
Obligation, and (ii) the Members have been unable to secure refinancing for such Matured Financing
Obligation on reasonably acceptable terms after negotiating in good faith to do so with third party
lender(s), then, at any time thereafter, any individual Member may on behalf of the Management
Committee issue a Capital Call for cash in the amount required for the payment of such Matured
Financing Obligation. If a Capital Call is validly issued by an individual Member under this
Section 4.01(d), then each Member shall be obligated to pay such Capital Call as provided in this
Section 4.01, but such payment shall be made within fifteen (15) days after the date the Capital
Call is given (and not the thirty (30) day period provided for in Section 4.01(b)).

     4.02 Loans. (a) If the Management Committee determines that the Company needs funds, then,
rather than calling for Capital Contributions, the Management Committee may issue or cause to be
issued a written request to each Member for the making of loans to the Company at such times, in
such amounts and under such terms and conditions as the Management Committee shall approve,
provided that the Management Committee shall not call for loans rather than Capital Contributions
if doing so would breach any Financing Commitment or other agreement of the

26

 

Company. All amounts
received from a Member after the date specified in Section 4.02(b)(iv) by the Company pursuant to
this Section 4.02 shall be accompanied by interest on such overdue amounts (and the default shall
not be cured unless such interest is also received by the Company), which interest shall be payable
to the Company and shall accrue from and after such specified date at the Default Rate. Any such
interest paid shall be credited to the respective Capital Accounts of all the Members, on a pro
rata basis in accordance with their respective Sharing Ratios as of the date such payment is made
to the Company, but shall not be considered part of the principal of the loan.

     (b) Each written request issued pursuant to Section 4.02(a) shall contain the following
information:

     (i) The total amount of loans requested from all Members;

     (ii) The amount of the loan requested from the Member to whom the request is addressed,
such amount to be in accordance with the Sharing Ratio of such Member;

     (iii) The purpose for which the funds are to be applied in such reasonable detail as
the Management Committee shall direct;

     (iv) The date on which the loans to the Company shall be made (which date shall not be
less than 30 Days following the date the request is given, unless a sooner date is approved
by the Management Committee) and the method of payment, provided that such date and method
shall be the same for each of the Members; and

     (v) All terms concerning the repayment of or otherwise relating to such loans, provided
that such terms shall be the same for each of the Members.

     (c) Each Member agrees that it shall make its respective loans in accordance with requests
issued pursuant to Section 4.02(a).

     4.03 No Other Contribution Obligations. No Member shall be required or permitted to make any
Capital Contributions or loans to the Company except pursuant to this Article 4.

     4.04 Return of Contributions. Except as expressly provided herein, a Member is not entitled
to the return of any part of its Capital Contributions or to be paid interest in respect of either
its Capital Account or its Capital Contributions. An unrepaid Capital Contribution is not a
liability of the Company or of any Member. A Member is not required to contribute or to lend any
cash or property to the Company to enable the Company to return any Member’s Capital Contributions.

     4.05 Capital Accounts. (a) The aggregate amount in the Capital Accounts existing as of
February 1, 2001 was split evenly between SESP and WGPG with 50% of such aggregate amount in the
Capital Account of SESP and 50% of such aggregate amount in the Capital Account of WGPG. Each
Member’s Capital Account shall be increased by (i) the amount of money contributed by that Member
to the Company (including amounts paid by Williams and SEGT in conjunction with that certain
Amended and Restated Acquisition Agreement by and among SEGT, Williams, Coastal and ANRG regarding
the acquisition of GNGS, dated December 8, 2000 that were not previously included in the Capital
Accounts, and AFUDC, each to the extent approved by the Management Committee), (ii) the fair market
value of property contributed by that Member to the Company (net

27

 

of liabilities secured by such
contributed property that the Company is considered to assume or take subject to under Section 752
of the Code), and (iii) allocations to that Member of Company income and gain (or items thereof),
including income and gain exempt from tax and income and gain described in Treasury Regulation §
1.704-1(b)(2)(iv)(g), but excluding income and gain described in Treasury Regulation §
1.704-1(b)(4)(i), and shall be decreased by (iv) the amount of money distributed to that Member by
the Company, (v) the fair market value of property distributed to that Member by the Company (net
of liabilities secured by such distributed property that such Member is considered to assume or
take subject to under Section 752 of the Code), (vi) allocations to that Member of expenditures of
the Company described (or treated as described) in Section 705(a)(2)(B) of the Code, and (vii)
allocations of Company loss and deduction (or items thereof), including loss and deduction
described in Treasury Regulation § 1.704-1(b)(2)(iv)(g), but excluding items described in (vi)
above and loss or deduction described in Treasury Regulation § 1.704-1(b)(4)(i) or
1.704-1(b)(4)(iii). The Members’ Capital
Accounts shall also be maintained and adjusted as permitted by the provisions of Treasury
Regulation § 1.704-1(b)(2)(iv)(f) and as required by the other provisions of Treasury Regulation §§
1.704-1(b)(2)(iv) and 1.704-1(b)(4), including adjustments to reflect the allocations to the
Members of depreciation, depletion, amortization, and gain or loss as computed for book purposes
rather than the allocation of the corresponding items as computed for tax purposes, as required by
Treasury Regulation § 1.704-1(b)(2)(iv)(g). Thus, the Members’ Capital Accounts shall be increased
or decreased to reflect a revaluation of the Company’s property on its books based on the fair
market value of the Company’s property on the date of adjustment (as determined pursuant to Section
4.05(b)), immediately prior to (A) the contribution of money or other property to the Company by a
new or existing Member as consideration for a Membership Interest or an increased Sharing Ratio,
(B) the distribution of money or other property by the Company to a Member as consideration for a
Membership Interest, or (C) the liquidation of the Company. A Member who has more than one
Membership Interest shall have a single Capital Account that reflects all such Membership
Interests, regardless of the class of Membership Interests owned by such Member and regardless of
the time or manner in which such Membership Interests were acquired. Upon the Disposition of all
or a portion of a Membership Interest, the Capital Account of the Disposing Member that is
attributable to such Membership Interest shall carry over to the Assignee in accordance with the
provisions of Treasury Regulation § 1.704-1(b)(2)(iv)(l). The Capital Accounts shall not be deemed
to be, nor have the same meaning as, the capital account of the Company under the NGA.

     (b) Whenever the fair market value of the Company’s property is required to be determined
pursuant to the third and fourth sentences of Section 4.05(a), GMOS shall propose such a fair
market value in a notice to the other Members. If any other Member disagrees with such
determination, such Member shall notify the other Members of such disagreement within 10 Business
Days of receiving such notice. If such Dispute is not resolved within five Business Days after
such notice, any Member may submit such Dispute to binding arbitration by delivering an Arbitration
Notice. All of the provisions of Article 11 shall apply to such arbitration, with the following
exceptions: (i) the Arbitrator shall be an appraiser or investment banking firm having expertise
in the valuation of natural gas transmission pipelines; (ii) the 20-Day period in Section 11.03(b)
shall be a five-Business Day period; and (iii) the 90-Day period in Section 11.04 shall be a 20-Day
period.

28

 

     4.06 Failure to Make a Capital Contribution.

     (a) General. If any Member fails to make a Capital Contribution as requested by the Management
Committee (or on behalf of the Management Committee under Section 4.01(d) above) in a Capital Call
validly and timely issued pursuant to Section 4.01 of this Agreement (each such Member being a
“Non-Contributing Member”), and if such failure continues for more than ten (10) Days after the
date on which it is due, the Members that have contributed their Capital Contribution (each, a
“Contributing Member”) may (without limitation as to other remedies that may be available)
thereafter elect to:

     (i) treat the Non-Contributing Member’s failure to contribute as a Default by giving
notice thereof to the Non-Contributing Member, in which event the provisions of this
Agreement regarding the commission of a Default by a Member shall apply (but if the
Capital Call is for the payment of a Matured Financing Obligation, the Default shall be
immediate on the giving of such notice and the thirty (30) day cure period contemplated in
the definition of Default shall not apply); notwithstanding the foregoing, this Section
4.06(a)(i) shall not apply in the case of a Capital Call issued by an individual Member
under Section 4.01(d) above; or

     (ii) pay the portion of the Capital Contribution owed and unpaid by the
Non-Contributing Member (the “Additional Contribution”) in which event the Contributing
Members that elect to fund the Non-Contributing Members’ share (the “Additional Contribution
Members”) may treat the contribution as one of: (1) a Capital Contribution resulting in the
Additional Contribution Members receiving a Priority Interest under Section 4.06(b), or (2)
a permanent capital contribution that results in an adjustment of Membership Interests under
Section 4.06(c), as determined by the Additional Contribution Members as set forth below.

No Contributing Member shall be obligated to make either election (i) or (ii) above. The decision
of the Contributing Members to elect (i) or (ii) above shall be made by the determination of the
Contributing Members holding the majority of the Sharing Ratios of all Contributing Members, but
(ii) above may not be elected unless at such time of determination there is one or more Additional
Contribution Members. The decision of the Additional Contribution Members to elect (ii)(1) or
(ii)(2) above shall be made by the determination of the Additional Contribution Members holding the
majority of the Sharing Ratios of all Additional Contribution Members. Unless and until such
election is made, payment of the Additional Contribution shall be treated as a Priority Interest
under Section 4.06(a)(ii)(1). If the Additional Contribution Members make the election under
Section 4.06(a)(ii) to treat the contribution as a contribution for which they receive a Priority
Interest under Section 4.06(b), then the Additional Contribution Members will have the option,
exercisable. at any time thereafter (by the election of Additional Contribution Members holding a
majority of the Sharing Ratios of all Additional Contribution Members) upon thirty (30) days prior
written notice to the other Members, to change their election such that the amount of the payment
of the Non-Contributing Members’ portion of the Capital Contribution (less any amounts received by
the Additional Contribution Members as a payment of the applicable Priority Interest (other than
payment of the return amount forming a part thereof)) shall be treated as an Additional
Contribution as provided in Section 4.06(c). In such event, the accrued and unpaid return forming
part of the Priority Interest shall not be treated as an Additional Contribution but shall continue
as a Priority

29

 

Interest as provided in Section 4.06(b) below (with such amount to continue to compound return
thereon).

     (b) Priority Interest. If the Additional Contribution Members elect to treat the payment of
Additional Contribution as a contribution for which the Additional Contribution Members receive a
Priority Interest, then the following shall apply:

     (i) Each Additional Contribution Member shall receive a Priority Interest in the
distributions from the Company that would otherwise be due and payable to the
Non-Contributing Member(s). The Priority Interest received by each Additional Contribution
Member shall be in the proportion that the amount of the Additional Contribution paid by
such Additional Contribution Member bears to the amount of the Additional Contributions made
by all Additional Contribution Members (each Additional Contribution Member’s percentage
share of the Priority Interests shall be its “Priority Interest Sharing Ratio”). All
distributions from the Company that would otherwise be due and payable to the
Non-Contributing Member(s) instead shall be paid to the Additional Contribution Members in
accordance with their respective Priority Interest Sharing Ratio and no distribution shall
be made from the Company to any Non-Contributing Member until all Priority Interests have
terminated. The Priority Interest shall terminate with respect to an Additional Contribution
Member when that Additional Contribution Member has received either through the
distributions it receives under its Priority Interest or through payment(s) to it by the
Non-Contributing Member(s) (which payment(s) may be made by the Non-Contributing Member(s)
at any time) of an amount equal to the Additional Contribution made by such Member, plus a
return thereon of fourteen percent (14%) per annum (compounded monthly on the outstanding
balance). For the purpose of making such calculation, all amounts received by an Additional
Contribution Member shall be deemed to be applied first against a return on, and then to the
amount of, the Additional Contribution. For purposes of maintaining Capital Accounts, any
amount paid by a Non-Contributing Member to a Contributing Member to reduce and/or terminate
a Priority Interest shall be treated as though such amount were contributed by the
Non-Contributing Member to the Company and thereafter distributed by the Company to the
Contributing Member with respect to its Priority Interest.

     (ii) The Priority Interests shall not alter the Sharing Ratios of the Members in the
Company, nor shall the Priority Interests alter any distributions to the Contributing
Members (in their capacity as Contributing Members, as opposed to their capacity as
Additional Contribution Members) in accordance with their respective Sharing Ratios.
Notwithstanding any provision in this Agreement to the contrary, a Member may not dispose of
all or a portion of its Priority Interest except to a person to whom it disposes all or the
applicable pro rata portion of its Membership Interest after compliance with the
requirements of this Agreement in connection therewith.

     (iii) For so long as any Additional Contribution Member holds a Priority Interest,
neither any Non-Contributing Member nor its Representative (except for a Non-Contributing
Member that has paid to the Additional Contribution Member(s) all of the amount of the
Additional Contribution attributable to such Non-Contributing Member in accordance with
Section 4.06(b)(i)) shall have the right to vote its Membership Interest (or Sharing Ratio)
under the Agreement with respect to any decision regarding distributions from the Company,

30

 

and any distribution to which such Non-Contributing Member is entitled shall be paid to
the Additional Contribution Members in respect of the Priority Interest.

     (iv) No Member that is a Non-Contributing Member may Dispose of its Membership Interest
unless at the closing of such Disposition, either the Non-Contributing Member or the
proposed Assignee pays the amount necessary to terminate the Priority Interest arising from
such Non-Contributing Member’s failure to contribute. No Assignee shall be admitted to the
Company as a Member until compliance with this Section 4.06(b)(iv) has occurred.

     (c) Permanent Contribution. Subject to Section 4.06(a), if the Additional Contribution Members
elect under Section 4.06(a) to have the Additional Contribution treated as a permanent capital
contribution, then each Additional Contribution Member that funds a portion of the Additional
Contribution shall have its capital account increased accordingly and the Members’ Membership
Interests and Sharing Ratios will be automatically adjusted to equal each Member’s total Capital
Contributions when expressed as a percentage of all Members’ Capital Contributions.

     (d) Further Assurance. In connection with this Section 4.06, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be
necessary or appropriate to effectuate and perform the provisions of this Section 4.06.

ARTICLE 5

DISTRIBUTIONS AND ALLOCATIONS

     5.01 Distributions. Within 30 days following the end of each Quarter, the Management
Committee shall approve the amount of Available Cash with respect to such Quarter, and an amount
equal to 100% of Available Cash with respect to such Quarter shall, subject to Section 18-607 of
the Delaware Act, be distributed in accordance with this Article 5 to the Members (other than a
Breaching Member) in proportion to their respective Sharing Ratios (at the time the amounts of such
distributions are made).

     5.02 Distributions on Dissolution and Winding-Up. Upon the dissolution and winding-up of the
Company, after adjusting the Capital Accounts for all distributions made under Section 5.01 and all
allocations under Article 5, all available proceeds distributable to the Members as determined
under Section 12.02 shall be distributed to all of the Members (other than a Breaching Member) in
amounts equal to the Members’ positive Capital Account balances.

     5.03 Allocations. (a) For purposes of maintaining the Capital Accounts pursuant to Section
4.05 and for income tax purposes, except as provided in Section 5.03(b) and (c), each item of
income, gain, loss, deduction and credit of the Company shall be allocated to the Members in
accordance with their respective Sharing Ratios.

     (b) With respect to each period during which a Priority Interest is outstanding, each
Additional Contribution Member shall be allocated items of income and gain in an amount equal to
the return that accrues with respect to such Additional Contribution Member’s Additional
Contribution pursuant to Section 4.06(b)(i), and items of income and gain that would otherwise
be allocable to the Non-Contributing Member(s) shall be correspondingly reduced.

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     (c) For income tax purposes, income, gain, loss, and deduction with respect to property
contributed to the Company by a Member or revalued pursuant to Treasury Regulation Section
1.704-1(b)(2)(iv)(f) shall be allocated among the Members in a manner that takes into account the
variation between the adjusted tax basis of such property and its book value, as required by
Section 704(c) of the Code and Treasury Regulation Section 1.704-1(b)(4)(i), using the remedial
allocation method permitted by Treasury Regulation Section 1.704-3(d).

     5.04 Varying Interests. All items of income, gain, loss, deduction or credit shall be
allocated, and all distributions shall be made, to the Persons shown on the records of the Company
to have been Members as of the last calendar day of the period for which the allocation or
distribution is to be made. Notwithstanding the foregoing, if during any taxable year there is a
change in any Member’s Sharing Ratio, the Members agree that their allocable shares of such items
for the taxable year shall be determined on any method determined by the Management Committee to be
permissible under Code Section 706 and the related Treasury Regulations to take account of the
Members’ varying Sharing Ratios.

ARTICLE 6

MANAGEMENT

     6.01 Generally. The management of the Company is fully vested in the Members. To facilitate
the orderly and efficient management of the Company, the Members shall act (a) collectively as a
“committee of the whole” (named the Management Committee) pursuant to Section 6.02, and (b) through
the delegation of certain duties and authority to GMOS and the Officers. Subject to the express
provisions of this Agreement, each Member agrees that it will not exercise its authority under the
Act to bind or commit the Company to agreements, transactions or other arrangements, or to hold
itself out as an agent of the Company.

     6.02 Management Committee. The Members shall act collectively through meetings as a
“committee of the whole,” which is hereby named the “Management Committee.” Decisions or actions
taken by the Management Committee in accordance with the provisions of this Agreement shall
constitute decisions or actions by the Company and shall be binding on each Member, Representative,
Officer and employee of the Company. The Management Committee shall conduct its affairs in
accordance with the following provisions and the other provisions of this Agreement:

     (a) Representatives.

     (i) Designation. To facilitate the orderly and efficient conduct of Management
Committee meetings, each Member shall notify the other Members, from time to time,
of the identity of (A) one of its officers, employees or agents who will represent
it at such meetings (a “Representative”), and (B) at least one, but not more than
two, of its officers, employees or agents, who will represent it at any meeting that
the Member’s Representative is unable to attend (each an “Alternate
Representative”). (The term “Representative” shall also refer to any Alternate
Representative that is actually performing the duties of the applicable
Representative.). The initial Representative and Alternate Representatives of each
Member are set forth in Exhibit A. A Member may designate a different
Representative or Alternate Representatives for any meeting of the Management

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Committee by notifying each of the other Members at least three Business Days prior
to the scheduled date for such meeting; provided, however, that if giving such
advance notice is not feasible, then such new Representative or Alternate
Representatives shall present written evidence of his or her authority at the
commencement of such meeting.

     (ii) Authority. Each Representative shall have the full authority to act on
behalf of the Member that designated such Representative; the action of a
Representative at a meeting (or through a written consent) of the Management
Committee shall bind the Member that designated such Representative; and the other
Members shall be entitled to rely upon such action without further inquiry or
investigation as to the actual authority (or lack thereof) of such Representative.
In addition, the act of an Alternate Representative shall be deemed the act of the
Representative for which such Alternate Representative is acting, without the need
to produce evidence of the absence or unavailability of such Representative.

     (iii) DISCLAIMER OF DUTIES; INDEMNIFICATION. EACH REPRESENTATIVE SHALL
REPRESENT, AND OWE DUTIES TO, ONLY THE MEMBER THAT DESIGNATED SUCH REPRESENTATIVE
(THE NATURE AND EXTENT OF SUCH DUTIES BEING AN INTERNAL CORPORATE AFFAIR OF SUCH
MEMBER), AND NOT TO THE COMPANY, ANY OTHER MEMBER OR REPRESENTATIVE, OR ANY OFFICER
OR EMPLOYEE OF THE COMPANY. THE PROVISIONS OF SECTION 6.02(f)(ii) SHALL ALSO INURE
TO THE BENEFIT OF EACH MEMBER’S REPRESENTATIVE. THE COMPANY SHALL INDEMNIFY,
PROTECT, DEFEND, RELEASE AND HOLD HARMLESS EACH REPRESENTATIVE FROM AND AGAINST ANY
CLAIMS ASSERTED BY OR ON BEHALF OF ANY PERSON (INCLUDING ANOTHER MEMBER), OTHER THAN
THE MEMBER THAT DESIGNATED SUCH REPRESENTATIVE, THAT ARISE OUT OF, RELATE TO OR ARE
OTHERWISE ATTRIBUTABLE TO, DIRECTLY OR INDIRECTLY, SUCH REPRESENTATIVE’S SERVICE ON
THE MANAGEMENT COMMITTEE.

     (iv) Attendance. Each Member shall use all reasonable efforts to cause its
Representative or Alternate Representative to attend each meeting of the Management
Committee, unless its Representative is unable to do so because of a “force majeure”
event or other event beyond his reasonable control, in which event such Member shall
use all reasonable efforts to cause its Representative or Alternate Representative
to participate in the meeting by telephone pursuant to Section 6.02(h).

     (b) Chairman and Secretary. One of the Representatives will be designated as Chairman
of the Management Committee, in accordance with this Section 6.02(b), to preside over
meetings of the Management Committee. For the period through December 31, 2005, the
Chairman shall be the Representative designated by SESP. From January 1, 2006 until
December 31, 2006, the Chairman shall be the Representative designated by WGPG.
Thereafter, unless the Management Committee decides otherwise, the Chairmanship shall be
rotated on an annual basis among the Representatives of the Members, with such rotation
proceeding with the Member having the largest Sharing Ratio going first (and alphabetically
among Members with identical Sharing Ratios), and with the Members named in the

33

 

preceding
two sentences being excluded from the first round of rotation (unless they are the only
Members); provided, however, no Member with a Sharing Ratio of less than 20% shall be
entitled to designate the Chairman. Any Member may waive its right to the Chairmanship.
The Management Committee shall also designate a Secretary of the Management Committee, who
need not be a Representative, but shall be an employee of the Chairman’s company or an
Affiliate thereof.

     (c) Procedures. The Secretary of the Management Committee shall maintain written
minutes of each of its meetings, which shall be submitted for approval within 10 Days after
each meeting. The Management Committee may adopt whatever rules and procedures relating to
its activities as it may deem appropriate, provided that such rules and procedures shall not
be inconsistent with or violate the provisions of this Agreement.

     (d) Time and Place of Meetings. The Management Committee shall meet quarterly, subject
to more or less frequent meetings upon approval of the Management Committee. Notice of, and
an agenda for, all Management Committee meetings shall be provided by the Chairman to all
Members at least five Days prior to the date of each meeting, together with proposed minutes
of the previous Management Committee meeting (if such minutes have not been previously
ratified). Special meetings of the Management Committee may be called at such times, and in
such manner, as any Member deems necessary. Any Member calling for any such special meeting
shall notify the Chairman, who in turn shall notify all Members of the date and agenda for
such meeting at least five Days prior to the date of such meeting. Such five-Day period may
be shortened by the Management Committee, acting through a Unanimous Interest. All meetings
of the Management Committee shall be held at a location designated by the Chairman.
Attendance of a Member at a meeting of the Management Committee shall constitute a waiver of
notice of such meeting, except where such Member attends the meeting for the express purpose
of objecting to the transaction of any business on the ground that the meeting is not
lawfully called or convened.

     (e) Quorum. The presence of a Majority Interest shall constitute a quorum for the
transaction of business at any meeting of the Management Committee.

     (f) Voting.

     (i) Voting by Sharing Ratios; Voting Thresholds. Except as provided otherwise
in this Agreement, voting shall be according to the Members’ respective Sharing
Ratios. Set forth below are definitions of the principal voting thresholds that are
required to approve certain actions (such thresholds being subject to adjustment
pursuant to Section 6.02(f)(iii)):

     (A) “Unanimous Interest” means all of the Members;

     (B) “Ultramajority Interest” means two or more Members holding among
them at least 75% of the Sharing Ratios; provided, however, that any Members
that are Affiliates of one another shall count as a single Member for
purposes of determining whether two or more Members have approved the
applicable matter;

34

 

     (C) “Supermajority Interest” means two or more Members holding among
them at least 62.5% of the Sharing Ratios; provided, however, that any
Members that are Affiliates of one another shall count as a single Member
for purposes of determining whether two or more Members have approved the
applicable matter; and

     (D) “Majority Interest” means two or more Members holding among them at
least a majority of the Sharing Ratios; provided, however, that any Members
that are Affiliates of one another shall count as a single Member for
purposes of determining whether two or more Members have approved the
applicable matter.

Except for matters that require the approval of a Unanimous Interest, Ultramajority
Interest or a Supermajority Interest pursuant to the provisions of this Agreement,
the vote of a Majority Interest shall constitute the action of the Management
Committee.

     (ii) DISCLAIMER OF DUTIES. WITH RESPECT TO ANY VOTE, CONSENT OR APPROVAL AT
ANY MEETING OF THE MANAGEMENT COMMITTEE OR OTHERWISE UNDER THIS AGREEMENT, EACH
MEMBER MAY GRANT OR WITHHOLD SUCH VOTE, CONSENT OR APPROVAL (A) IN ITS SOLE AND
ABSOLUTE DISCRETION, (B) WITH OR WITHOUT CAUSE, (C) SUBJECT TO SUCH CONDITIONS AS IT
SHALL DEEM APPROPRIATE, AND (D) WITHOUT TAKING INTO ACCOUNT THE INTERESTS OF, AND
WITHOUT INCURRING LIABILITY TO, THE COMPANY, ANY OTHER MEMBER OR REPRESENTATIVE, OR
ANY OFFICER OR EMPLOYEE OF THE COMPANY (COLLECTIVELY, “SOLE DISCRETION”). THE
PROVISIONS OF THIS SECTION 6.02(f)(ii) SHALL APPLY NOTWITHSTANDING THE NEGLIGENCE,
GROSS NEGLIGENCE, WILLFUL MISCONDUCT, STRICT LIABILITY OR OTHER FAULT OR
RESPONSIBILITY OF A MEMBER OR ITS REPRESENTATIVE.

     (iii) Exclusion of Certain Members and Their Sharing Ratios. With respect to
any vote, consent or approval, any Breaching Member or Withdrawn Member shall be
excluded from such decision (as contemplated by Section 10.03(b)), and the Sharing
Ratio of such Breaching Member or Withdrawn Member shall be disregarded in
calculating the voting thresholds in Section 6.02(f)(i). In addition, if any other
provision of this Agreement provides that a Majority Interest, Supermajority
Interest, Ultramajority Interest or Unanimous Interest is to be calculated without
reference to the Sharing Ratio of a particular Member, then the applicable voting
threshold in Section 6.02(f)(i) shall be deemed adjusted accordingly.

     (g) Action by Written Consent. Any action required or permitted to be taken at a
meeting of the Management Committee may be taken without a meeting, without prior notice,
and without a vote if a consent or consents in writing, setting forth the action so taken,
is signed by the Members that could have taken the action at a meeting of the Management
Committee.

35

 

     (h) Meetings by Telephone. Members may participate in and hold such meeting by means
of conference telephone, videoconference or similar communications equipment by means of
which all persons participating in the meeting can hear each other. Participation in such a
meeting shall constitute presence in person at such meeting, except where a Member
participates in the meeting for the express purpose of objecting to the transaction of any
business on the ground that the meeting is not lawfully called or convened.

     (i) Matters Requiring Management Committee Approval. Notwithstanding any other
provision of this Agreement, none of the following actions may be taken by, or on behalf of,
the Company without first obtaining the vote of the Management Committee described below:

     (i) Unanimous Interest. The following actions shall require the approval of a
Unanimous Interest:

     (A) dissolution of the Company pursuant to Section 12.01(a);

     (B) causing or permitting the Company to become Bankrupt (but this
provision shall not be construed to require any Member to ensure the
profitability or solvency of the Company);

     (C) conducting any activity or business that may generate income for
federal income tax purposes that may not be “qualifying income” (as such
term is defined pursuant to Section 7704 of the Code); and

     (D) any other action that, pursuant to an express provision of this
Agreement, requires the approval of a Unanimous Interest.

     (ii) Ultramajority Interest. The following actions shall require the approval
of an Ultramajority Interest:

     (A) the Disposition or abandonment of all or substantially all of the
Company’s assets;

     (B) causing or permitting the Company to merge, consolidate or convert
into any other entity;

     (C) considering at a meeting of the Management Committee a matter not
on the agenda for that meeting;

     (D) amending or terminating the COM Agreement or restricting any
delegation of authority thereunder; and

     (E) any other action that, pursuant to an express provision of this
Agreement, requires the approval of an Ultramajority Interest.

36

 

     (iii) Supermajority Interest. The following actions shall require the approval
of a Supermajority Interest:

     (A) calling for loans to the Company pursuant to Section 4.02 rather
than Capital Contributions pursuant to Section 4.01;

     (B) approving or amending the annual Capital Budget and Operating
Budget for the Company (with it being understood that the last approved
Capital Budget or Operating Budget shall be used, and deemed approved, for
any subsequent period until the new Capital Budget or Operating Budget (as
applicable) for that period is so approved, including the parameters within
which GMOS and Officers are authorized to expend Company funds without
further Management Committee approval;

     (C) selecting a different name for the Company;

     (D) providing for the basic geographic configuration, points of receipt
and delivery, pipeline diameter or design capacity of the Initial Facilities
to be materially different from that set forth in the form of the FERC
Application for the Initial Facilities;

     (E) approving any lease of capacity on the Facilities;

     (F) approving accounting procedures for the Company; and

     (G) any other action that, pursuant to an express provision of this
Agreement, requires the approval of a Supermajority Interest.

     (iv) Majority Interest. A Majority Interest shall be required to approve (A)
the amount of Available Cash with respect to each Quarter and (B) any other action
that, pursuant to an express provision of this Agreement, (1) requires the approval
of a Majority Interest or (2) requires the approval of the Management Committee but
does not expressly require the approval of a Unanimous Interest, an Ultramajority
Interest, or a Supermajority Interest.

     (j) Subcommittees. The Management Committee may create such subcommittees, and
delegate to such subcommittees such authority and responsibility, and rescind any such
delegations, as it may deem appropriate.

     (k) Officers. The Management Committee may designate one or more Persons to be
Officers of the Company. Any Officers so designated shall have such titles and, subject to
the other provisions of this Agreement, have such authority and perform such duties as the
Management Committee may delegate to them and shall serve at the pleasure of the Management
Committee and report to the Management Committee.

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     6.03 Construction, Operation and Management Agreement

     (a) Subject to approval by the Management Committee, the Company shall enter into a
Construction, Operation, and Management Agreement with GMOS or an Affiliate thereof (the
“COM Agreement"), which will set forth (a) the services to be provided to the Company, (b)
provisions for the payment to GMOS of its Reimbursable Costs and any other payments approved
by the Management Committee, (c) the circumstances under which the COM Agreement may be
terminated by the Company or by GMOS, (d) the audit rights of the Company with respect to
GMOS, (e) the indemnification of GMOS by the Company, and (f) any other provisions that are
consistent with the provisions of this Agreement and approved by the Management Committee.
It is anticipated that the COM Agreement contemplated by this Section 6.03(a) with GMOS will
be executed by each Member and GMOS concurrently with the execution of this Agreement.

     (b) The COM Agreement entered into by the Company with GMOS shall not be amended nor
shall the Company’s right to terminate the COM Agreement be exercised without first
obtaining the consent of an Ultramajority Interest.

     6.04 Conflicts of Interest. (a) Notwithstanding Section 6.04(b), the Members and their
Affiliates shall be prohibited from competing with the Company in the following circumstances:

     (i) Until the end of the Term, the Members and their Affiliates may only develop,
construct, own, acquire and operate the Facilities through the Company or otherwise in
accordance with this Agreement.

     (ii) Until the end of the Term, except as provided in Sections 7.02(i) and 7.03(f), the
Members and their Affiliates may only develop, construct, own, acquire and operate
Construction Capital Opportunities and Acquisition Capital Opportunities through the Company
or otherwise in accordance with this Agreement.

The provisions of this Section 6.04(a) shall continue to bind a Withdrawn Member and its Affiliates
until the third anniversary of such Withdrawal, but not thereafter. The Members agree that the
provisions of this Section 6.04(a) are necessary (I) to further the purposes, business and
activities of the Company, and (II) to protect confidential and proprietary information regarding
the Company, to which the Members will have access pursuant to this Agreement. The Members agree
that no adequate remedy at law exists for a breach or threatened breach of any of the provisions of
this Section 6.04(a), the continuation of which unremedied will cause the Company and the other
Members to suffer irreparable harm. Accordingly, the Members agree that the Company and the other
Members shall be entitled, in addition to other remedies that may be available to them, to
immediate injunctive relief from any breach of any of the provisions of this Section 6.04(a) and to
specific performance of their rights hereunder, as well as to any other remedies available at law
or in equity, pursuant to Section 11.04.

     (b) Subject to Sections 6.04(a), 7.02 and 7.03, a Member or an Affiliate of a Member may
engage in and possess interests in other business ventures of any and every type and description,
independently or with others, including ones in competition with the Company, with no obligation to
offer to the Company, any other Member or any Affiliate of another Member the right to participate
therein. Subject to Sections 6.04(a), 7.02 and 7.03, the Company may transact business with any

38

 

Member or Affiliate thereof, provided the terms of those transactions are approved by the
Management Committee or expressly contemplated by this Agreement or the COM Agreement. Without
limiting the generality of the foregoing, the Members recognize and agree that their respective
Affiliates currently engage in certain activities involving natural gas and electricity marketing
and trading (including futures, options, swaps, exchanges of future positions for physical
deliveries and commodity trading), gathering, processing, storage, transportation and distribution,
electric generation, development and ownership, as well as other commercial activities related to
natural gas and that these and other activities by Members’ Affiliates may be based on natural gas
that is shipped through the Facilities or otherwise made possible or more profitable by reason of
the Company’s activities (herein referred to as “Affiliate’s Outside Activities”). Subject to
Sections 6.04(a), 7.02 and 7.03, (i) no Affiliate of a Member shall be restricted in its right to
conduct, individually or jointly with others, for its own account any Affiliate’s Outside
Activities, and (ii) no Member or its Affiliates shall have any duty or obligation, express or
implied, fiduciary or otherwise, to account to, or to share the results or profits of such
Affiliate’s Outside Activities with, the Company, any other Member or any Affiliate of any other
Member, by reason of such Affiliate’s Outside Activities. The provisions of this Section 6.04(b)
constitute an agreement to modify or eliminate fiduciary duties pursuant to the provisions of
Section 18-1101 of the Act.

     (c) Notwithstanding any other provision in this Agreement, if the Company and a Member or an
Affiliate thereof propose to enter into or amend a contract or arrangement with each other (a
“Contract Decision”) or if a dispute arises between the Company and an Affiliate of a Member under
a Gas Transportation Service Agreement or any other contract or arrangement, (i) such Member shall
not participate in (by its Representative’s vote on the Management Committee or otherwise) the
Contract Decision or the decisions of the Company with respect to such dispute and (ii) the
determination of whether a Unanimous Interest, Supermajority Interest, Ultramajority Interest or
Majority Interest has been obtained concerning any matter relating to such Contract Decision or
dispute shall be calculated without reference to such Member; provided however, if at the time
there are only two Members of the Management Committee that are not Affiliates of one another, any
such Contract Decision that is not resolved by discussion among the Management Committee, and any
such dispute, shall be resolved in accordance with Article 11.

     6.05 Indemnification for Breach of Agreement. Each Member shall indemnify, protect, defend,
release and hold harmless each other Member, its Representative, its Affiliates, and its and their
respective directors, officers, trustees, employees and agents from and against any Claims asserted
by or on behalf of any Person (including another Member) that result from a breach by the
indemnifying Member of this Agreement; provided, however, that this Section 6.05 shall not (a)
apply to any Claim or other matter for which a Member (or its Representative) has no liability or
duty, or is indemnified or released, pursuant to Section 6.02(a)(iii), 6.02(f)(ii) or 6.04 or
pursuant to the terms of the Services Agreements or (b) hold the indemnified Person harmless from
special, consequential or exemplary damages, except in the case where the indemnified Person is
legally obligated to pay such damages to another Person.

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ARTICLE 7

DEVELOPMENT OF FACILITIES

     7.01 Development of Initial Facilities.

          (a) Approval of FERC Certificate for Initial Facilities. No later than 10 Days prior to the
FERC Response Date, the Management Committee shall vote on whether the FERC Certificate for the
Initial Facilities is issued on terms and conditions which are not materially different from those
requested in the FERC Application for the Initial Facilities and whether the Company shall (i)
accept the FERC Certificate for the Initial Facilities without seeking rehearing, (ii) accept such
FERC Certificate and seek rehearing of the order issuing the FERC Certificate, or (iii) reject such
FERC Certificate. The Management Committee shall be deemed to have approved the FERC Certificate
for the Initial Facilities if the Management Committee by a Ultramajority Interest determines that
such certificate is issued on terms and conditions which are not materially different from those
requested in the FERC Application for the Initial Facilities. In such event, the Management
Committee shall accept the FERC Certificate prior to the Response Date with or without seeking
rehearing of the order issuing the FERC Certificate for the Initial Facilities. In such event each
Member shall be firmly committed to the construction of the Initial Facilities and the construction
of the Initial Facilities shall not be subject to any conditions precedent, including but not
limited to Management Committee approval of any financial commitment for obtaining funds to finance
the Initial Facilities or a Management Committee Approval to construct the Initial Facilities.

     (A) If the Management Committee by a vote of an Ultramajority Interest finds
that the FERC Certificate for the Initial Facilities is issued on terms and
conditions which are materially different from those requested in the FERC
Application for the Initial Certificate and all the Members vote to accept the order
issuing the FERC Certificates with or without seeking rehearing, then the Management
Committee shall accept the FERC Certificate prior to the Response Dates and in such
event each Member shall be firmly committed to the construction of the Initial
Facilities and the construction of the Initial Facilities shall not be subject to
any conditions precedent as provided in Section 7.01(a).

     (B) If the Management Committee by a vote of an Ultramajority Interest finds
that the FERC Certificate for the Initial Facilities is issued on terms and
conditions which are materially different from those requested in the FERC
Application for the Initial Facilities and one or more of the Members vote to accept
the order issuing the FERC Certificate with or without seeking rehearing and one or
more of the Members vote to reject the order issuing the FERC Certificate for the
Initial Facilities with or without seeking rehearing (or did not vote), then the
Members that voted to accept such FERC Certificate shall be free to proceed with the
construction of the Initial Facilities under this agreement, such vote being deemed
the requisite vote of the Management Committee, and the Members that voted to reject
such FERC Certificate shall be deemed to have Withdrawn from the Company. Those
Members that elect to proceed with the construction of the Initial Facilities shall
be firmly committed to the construction of the Initial Facilities and the
construction of the Initial Facilities shall not be subject to any conditions
precedent
as provided in Section 7.01(a). In the event no Member votes to accept the
order

40

 

issuing the FERC Certificate for the Initial Facilities, then such vote shall
be a Dissolution Event and the Company shall dissolve and its offices shall be wound
up pursuant to Article 12.

     7.02 Construction Capital Opportunities. The following provisions shall constitute the
exclusive procedure by which Construction Capital Opportunities may be approved and constructed by
the Company, a Member or an Affiliate of a Member:

     (a) Proposal. Subject to Section 7.02(i), any one or more Members that become aware of
a Construction Capital Opportunity may submit it to the Company by notifying the other
Members of the nature of the proposed Construction Capital Opportunity, including such
details as are then available, and providing a detailed explanation of the reasons why such
Construction Capital Opportunity is being requested.

     (b) Feasibility Study. As soon as reasonably practicable and in no event later than 60
Days after the giving of the notice described in Section 7.02(a), the Management Committee
shall vote on whether to authorize a feasibility study for the Construction Capital
Opportunity. Upon the vote of the Management Committee to authorize such a study, GMOS
shall prepare and deliver to each Member the findings of such feasibility study, which shall
include a detailed description of the Construction Capital Opportunity and the Estimated
Cost thereof, appropriate rate information and the proposed financing therefor.

     (c) Development Vote. Within 60 Days after the study described in Section 7.02(b) has
been received by each Member, the Management Committee shall vote on whether to proceed with
the development of the proposed Construction Capital Opportunity as set forth in such study.
Upon the vote of the Management Committee to proceed with the development of the proposed
Construction Capital Opportunity, the Company shall proceed with such development, including
the acquisition of Necessary Regulatory Approvals and the Financing Commitment. A vote to
proceed with the development of a Construction Capital Opportunity shall be without
prejudice to any subsequent votes with respect to such Construction Capital Opportunity.

     (d) Conditions to Construction. Except with the approval of a Supermajority Interest,
the Company shall not incur any material costs or obligations with respect to the
Construction Capital Opportunity or be obligated under any Financing Commitment relating to
the Construction Capital Opportunity until (i) the Necessary Regulatory Approvals for the
Construction Capital Opportunity have been obtained, (ii) any Financing Commitment for the
Construction Capital Opportunity has been negotiated and is ready for acceptance by the
Company (with the Management Committee to decide whether such Financing Commitment utilizes
a Financing Entity), (iii) all conditions precedent (other than any conditions requiring
that the Members approve construction of the Construction Capital Opportunity or requiring
the Construction Capital Opportunity to be constructed) under any precedent agreements with
respect to any applicable Gas Transportation Service Agreements for the Construction Capital
Opportunity have been satisfied, (iv) the Estimated Cost of the Construction Capital
Opportunity has been determined by GMOS, based on bids from two or more general
contractors, and (v) the Management Committee has approved the commitment to construct the
Construction Capital Opportunity as provided in Section 7.02(e).

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     (e) Construction Vote. Immediately following the last to occur of the events referred
to in Section 7.02(d)(i), (ii), (iii) and (iv), the Management Committee shall vote on
whether the Company shall be committed to construct the Construction Capital Opportunity
(which commitment to construct shall (i) constitute an acceptance of any Financing
Commitment for the Construction Capital Opportunity, and (ii) be accompanied by the
selection of contractors on the basis of cost and qualification).

     (f) Financing Commitment. After the Financing Commitment relating to the Construction
Capital Opportunity has been approved (as part of an Affirmative Construction Vote), the
Company shall not incur any material costs or obligations with respect to the Construction
Capital Opportunity until all conditions precedent to the obtaining by the Company of funds
pursuant to the applicable Financing Commitment relating to the Construction Capital
Opportunity have been satisfied, except with approval by the Management Committee (through a
Supermajority Interest). If a Supermajority Interest decides that there will not be a
Financing Commitment for a Construction Capital Opportunity, this Section 7.02(f) shall not
apply with respect to that Construction Capital Opportunity.

     (g) Construction of Construction Capital Opportunity. Unless a construction agreement
has been theretofore executed pursuant to the approval of a Supermajority Interest, after an
Affirmative Construction Vote for the Construction Capital Opportunity, (i) GMOS shall
negotiate a construction agreement (in consultation with the Management Committee to the
extent requested by the Management Committee) with the contractors selected by the
Management Committee and submit the agreements to the Management Committee for its approval;
(ii) upon such approval, the Company shall enter into the construction agreements with the
contractors; and (iii) GMOS shall oversee the performance under the construction contracts,
coordinate with the contractors in connection with the construction, administer the
construction contracts and regularly report to the Management Committee on the progress of
the construction. GMOS shall not amend in any material respect or terminate the
construction agreements, relinquish any material rights thereunder, or institute litigation
or arbitration against the contractors, except with the approval of the Management
Committee.

     (h) Dilution. If (i) an Affirmative Construction Vote pursuant to Section 7.02(e) is
not unanimous, and (ii) one or more Members, that voted in the negative in connection with
said Affirmative Construction Vote pursuant to Section 7.02(e), elect in writing within 10
Days after such vote to be diluted, then (A) any such electing Member shall not be required
to make any Capital Contribution to the Company pursuant to Section 4.01 in connection with
the construction of the Construction Capital Opportunity in question, and (B) each such
electing Member’s Sharing Ratio shall, upon the contribution by the other Members of the
Capital Contribution required in connection with the construction of the Construction
Capital Opportunity in question, be reduced by multiplying it by a fraction, (I) the
numerator of which is the aggregate positive balances in the Members’ Capital Accounts, with
such balances being determined immediately following their adjustment pursuant to the third
and fourth sentences of Section 4.05(a), and (II) the denominator of
which is the sum of (aa) such numerator and (bb) the total of all Capital Contributions that
the Management Committee then estimates will be required of all Members in connection with
the Construction Capital Opportunity in question, based upon the Estimated Cost of

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such
Construction Capital Opportunity and all other factors deemed relevant by the Management
Committee (with the Sharing Ratios of the other Members being proportionately increased).
As soon as the actual amount of such Capital Contributions has been determined by the
Management Committee, such Member’s Sharing Ratio shall be readjusted, using the method
described in Section 7.02(h)(B), but using such actual amount of such Capital Contributions
instead of such estimate.

     (i) Pursuit Outside of Company. One or more Members or its Affiliates may pursue a
Construction Capital Opportunity (other than looping of or compression on the Facilities and
other than the modification of capacity on the Facilities by the changing of the pipe size
of any part of the Facilities) for their own account, rather than through the Company (and
the Company and other Members shall have no interest therein), if such Member or its
Affiliates elect in their Sole Discretion to pursue such Construction Capital Opportunity
for their own account.

     7.03 Acquisition Capital Opportunities. The following provisions shall constitute the
exclusive procedure by which Acquisition Capital Opportunities may be approved and acquired by the
Company, a Member or an Affiliate of a Member:

     (a) Proposal. Subject to Section 7.03(f), any one or more Members that become aware of
an Acquisition Capital Opportunity may submit it to the Company by notifying the other
Members of the nature of the proposed Acquisition Capital Opportunity, including such
details as are then available, and providing a detailed explanation of the reasons why such
Acquisition Capital Opportunity is being requested, together with the Estimated Cost of the
Acquisition Capital Opportunity.

     (b) Negotiation Vote. As soon as reasonably practicable and in no event later than 20
Days after the giving of the notice described in Section 7.03(a), the Management Committee
shall vote on whether to authorize a negotiating team specified by the Management Committee
to negotiate with the proposed seller a form of purchase and sale agreement, based upon such
instructions as the Management Committee shall set forth.

     (c) Acquisition Vote. If the negotiating team is able to negotiate a form of purchase
and sale agreement that is acceptable to the seller, the Management Committee shall vote on
whether the Company shall enter into such purchase and sale agreement. If such agreement is
executed, the terms thereof shall govern the rights and obligations of the Company. Any
such affirmative vote is herein called the “Affirmative Acquisition Vote”, provided that, if
such purchase and sale agreement is terminated without a closing occurring thereunder, it
shall be deemed for the purposes of the other provisions of this Agreement that no
Affirmative Acquisition Vote occurred.

     (d) Other Details. All details related to the Acquisition Capital Opportunity that are
not set forth in this Section 7.03 (including whether any Financing Commitment (and the
terms thereof) is to be entered into in connection therewith) shall be determined by the
Management Committee.

     (e) Dilution. If (i) an Affirmative Acquisition Vote pursuant to Section 7.03(c) is
not unanimous, and (ii) one or more Members that voted in the negative in connection with

43

 

said Affirmative Acquisition Vote pursuant to Section 7.03(c), elect in writing within 10
Days after such vote to be diluted, then (A) any such electing Member shall not be required
to make any Capital Contribution to the Company pursuant to Section 4.02 in connection with
the acquisition of the Acquisition Capital Opportunity in question, and (B) each such
electing Member’s Sharing Ratio shall, upon the contribution by the other Members of the
Capital Contribution required in connection with the acquisition of the Acquisition Capital
Opportunity in question, be reduced by multiplying it by a fraction, (I) the numerator of
which is the aggregate positive balances in the Members’ Capital Accounts, with such
balances being determined immediately following their adjustment pursuant to the third and
fourth sentences of Section 4.05(a), and (II) the denominator of which is the sum of (aa)
such numerator and (bb) the total of all Capital Contributions that the Management Committee
then estimates will be required of all Members in connection with the Acquisition Capital
Opportunity in question, based upon the Estimated Cost of such Acquisition Capital
Opportunity and all other factors deemed relevant by the Management Committee (with the
Sharing Ratios of the other Members being proportionately increased). As soon as the actual
amount of such Capital Contributions has been determined by the Management Committee, such
Member’s Sharing Ratio shall be readjusted, using the method described in Section
7.03(e)(B), but using such actual amount of such Capital Contributions instead of such
estimate.

     (f) Pursuit Outside of Company. One or more Members or its Affiliates may pursue an
Acquisition Capital Opportunity (other than looping of or compression on the Facilities and
other than the modification of capacity on the Facilities by the changing of the pipe size
of any part of the Facilities) for their own account, rather than through the Company (and
the Company and other Members shall have no interest therein), if such Member or its
Affiliates elect in their Sole Discretion to pursue such Acquisition Capital Opportunity for
their own account.

     7.04 General Regulatory Matters.

     (a) The Members acknowledge that the Company will be a “natural gas company” as defined in
Section 2.(6) of the NGA.

     (b) Each Member shall (i) cooperate fully with the Company, the Management Committee and GMOS
in securing the Necessary Regulatory Approvals, including supporting all FERC Applications, and in
connection with any reports prescribed by the FERC and any other Governmental Authority having
jurisdiction over the Company; (ii) join in any eminent domain takings by the Company, to the
extent, if any, required by Law; and (iii) devote such efforts as shall be reasonable and necessary
to develop and promote the Facilities for the benefit of the Company, taking into account such
Member’s Sharing Ratio, resources and expertise.

ARTICLE 8

TAXES

     8.01 Tax Returns. GMOS shall prepare and timely file (on behalf of the Company) all federal,
state and local tax returns required to be filed by the Company. Each Member shall furnish to GMOS
all pertinent information in its possession relating to the Company’s operations that is

44

 

necessary
to enable the Company’s tax returns to be timely prepared and filed. The Company shall bear the
costs of the preparation and filing of its returns.

     8.02 Tax Elections. The Company shall make the following elections on the appropriate tax
returns:

     (a) to adopt as the Company’s fiscal year the calendar year;

     (b) to adopt the accrual method of accounting;

     (c) if a distribution of the Company’s property as described in Code Section 734 occurs
or upon a transfer of Membership Interest as described in Code Section 743 occurs, on
request by notice from any Member, to elect, pursuant to Code Section 754, to adjust the
basis of the Company’s properties;

     (d) to elect to amortize the organizational expenses of the Company ratably over a
period of 60 months as permitted by Section 709(b) of the Code; and

     (e) any other election the Management Committee may deem appropriate.

Neither the Company nor any Member shall make an election for the Company to be excluded from the
application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar
provisions of applicable state law and no provision of this Agreement shall be construed to
sanction or approve such an election.

     8.03 Tax Matters Member. (a) The Management Committee shall designate a Member to serve as
the “tax matters partner” of the Company pursuant to Section 6231(a)(7) of the Code (the “Tax
Matters Member”). The Tax Matters Member shall take such action as may be necessary to cause to
the extent possible each other Member to become a “notice partner” within the meaning of Section
6223 of the Code. The Tax Matters Member shall inform each other Member of all significant matters
that may come to its attention in its capacity as Tax Matters Member by giving notice thereof on or
before the fifth Business Day after becoming aware thereof and, within that time, shall forward to
each other Member copies of all significant written communications it may receive in that capacity.

     (b) The Tax Matters Member shall provide any Member, upon request, access to accounting and
tax information and schedules as shall be necessary for the preparation by such Member of its
income tax returns and such Member’s tax information reporting requirements.

     (c) The Tax Matters Member shall take no action without the authorization of the Management
Committee, other than such action as may be required by Law. Any cost or expense
incurred by the Tax Matters Member in connection with its duties, including the preparation
for or pursuance of administrative or judicial proceedings, shall be paid by the Company.

     (d) The Tax Matters Member shall not enter into any extension of the period of limitations for
making assessments on behalf of the Members without first obtaining the consent of the Management
Committee. The Tax Matters Member shall not bind any Member to a settlement agreement without
obtaining the consent of such Member. Any Member that enters into a settlement

45

 

agreement with
respect to any Company item (as described in Code Section 6231(a)(3)) shall notify the other
Members of such settlement agreement and its terms within 90 Days from the date of the settlement.

     (e) No Member shall file a request pursuant to Code Section 6227 for an administrative
adjustment of Company items for any taxable year without first notifying the other Members. If the
Management Committee consents to the requested adjustment, the Tax Matters Member shall file the
request for the administrative adjustment on behalf of the Members. If such consent is not
obtained within 30 Days from such notice, or within the period required to timely file the request
for administrative adjustment, if shorter, any Member, including the Tax Matters Member, may file a
request for administrative adjustment on its own behalf. Any Member intending to file a petition
under Code Sections 6226, 6228 or other Code Section with respect to any item involving the Company
shall notify the other Members of such intention and the nature of the contemplated proceeding. In
the case where the Tax Matters Member is the Member intending to file such petition on behalf of
the Company, such notice shall be given within a reasonable period of time to allow the other
Members to participate in the choosing of the forum in which such petition will be filed.

     (f) If any Member intends to file a notice of inconsistent treatment under Code Section
6222(b), such Member shall give reasonable notice under the circumstances to the other Members of
such intent and the manner in which the Member’s intended treatment of an item is (or may be)
inconsistent with the treatment of that item by the other Members.

ARTICLE 9

BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS

     9.01 Maintenance of Books. (a) GMOS shall keep or cause to be kept at the principal office of
the Company or at such other location approved by the Management Committee complete and accurate
books and records of the Company, including all books and records necessary to provide to the
Members any information required to be provided pursuant to Section 9.02, supporting documentation
of the transactions with respect to the conduct of the Company’s business and minutes of the
proceedings of its Members and the Management Committee, and any other books and records that are
required to be maintained by applicable Law.

     (b) The books of account of the Company shall be (i) maintained on the basis of a fiscal year
that is the calendar year, (ii) maintained on an accrual basis in accordance with Required
Accounting Practices, and (iii) unless the Management Committee decides otherwise, audited by the
Certified Public Accountants at the end of each calendar year.

     9.02 Reports. (a) With respect to each calendar year, GMOS shall prepare and deliver to each
Member:

(i) Within 90 Days after the end of such calendar year, a statement of operations
and a statement of cash flows for such year, a balance sheet and a statement of each
Member’s Capital Account as of the end of such year, and an audited report thereon
of the Certified Public Accountants; provided, however, upon the written request of
one or more Members at least 60 Days prior to the applicable calendar year end,
which request shall be a standing request effective for subsequent calendar years
unless and until revoked by the requesting Member, GMOS shall prepare and deliver

46

 

to the requesting Member(s) within 30 Days after the end of each such calendar year the
foregoing information except for the audited report, which GMOS shall prepare and
deliver to the requesting Member(s) within 50 Days after the end of each such
calendar year.

(ii) Within 75 Days after the end of such calendar year, such federal, state and
local income tax returns and such other accounting and tax information and schedules
as shall be necessary for tax reporting purposes by each Member with respect to such
year; provided, however, upon the written request of one or more Members at least 60
Days prior to the applicable calendar year end, which request shall be a standing
request effective for subsequent calendar years unless and until revoked by the
requesting Member, GMOS shall prepare and deliver to the requesting Member(s) the
foregoing returns, information and schedules within 30 Days after the end of each
such calendar year.

     (b) Upon the written request of one or more Members at least 60 Days prior to the applicable
calendar year end, which request shall be a standing request effective for subsequent calendar
years unless and until revoked by the requesting Member, GMOS shall prepare and deliver to the
requesting Member(s) the following information within 30 Days after the end of such calendar year:

     (i) A discussion and analysis of the results of operations including detailed
explanations of significant variances in revenues, expenses and cash flow activities
appearing in the audited financial statements, as compared to the same periods in
the prior calendar year, and relevant operational statistics, including volumetric
data;

     (ii) A schedule of amounts due by year for contractual obligations that will
impact Available Cash including, but not limited to, notes payable, capital leases,
operating leases, and purchase obligations; and

     (iii) A three-year forward-looking forecast that includes a balance sheet,
profit and loss statement, and a statement of cash flows. Such forecast shall
include information pertaining to the underlying assumptions used in its preparation
including, but not limited to, volumetric, revenue per-unit and capital expenditure
assumptions. Such forecast also shall be updated within 45 Days after execution by
the Company of a material Gas Transportation Service Agreement if the timing and
amount of revenues or expenses resulting from such agreement are materially
different than estimates included in the forward-looking forecast.

The reasonable incremental cost to GMOS of preparing the above reports shall be reimbursed
to GMOS by the Member requesting such reports and, in the case of two or more Members
requesting such reports, equally by such Members. Such cost shall be determined in
accordance with Article III of the Accounting Procedure set forth in Exhibit A to the
applicable Services Agreement.

     (c) Within 25 Days after the end of each calendar month, GMOS shall cause to be prepared and
delivered to each Member with an appropriate certification of the Person authorized to

47

 

prepare the
same (provided that the Management Committee may change the financial statements required by this
Section 9.02(c) to a quarterly basis or may make such other change therein as it may deem
appropriate):

     (i) A statement of operations for such month (including sufficient information to
permit the Members to calculate their tax accruals) and for the portion of the calendar year
then ended as compared with the same periods for the prior calendar year and with the
budgeted results for the current periods; and

     (ii) A balance sheet and a statement of each Member’s Capital Account as of the end of
such month and the portion of the calendar year then ended.

     (d) Upon the written request of one or more Members at least 60 Days prior to the applicable
calendar quarter end, which request shall be a standing request effective for subsequent calendar
quarters unless and until revoked by the requesting Member, within 25 Days after the end of each of
the first three calendar quarters of each year, GMOS shall cause to be prepared and delivered to
each Member (i) a statement of operations for such quarter and year-to-date, a statement of cash
flows and a statement of each Member’s Capital Account for the year-to-date period, and a balance
sheet as of the end of such quarter, (ii) a discussion and analysis of the results of operations
including detailed explanations of significant variances in revenues, expenses and cash flow
activities appearing in the financial statements (as formally reviewed by the Certified Public
Accountants), as compared to the same periods in the prior calendar year, and relevant operational
statistics, including volumetric data, and (iii) within 40 Days after the end of such quarter, a
formal review report thereon of the Certified Public Accountants.

     (e) In addition to its obligations under subsections (a), (b), (c) and (d) of this Section
9.02, GMOS shall timely prepare and deliver to any Member, upon request, all of such additional
financial statements, notes thereto and additional financial information as may be required in
order for each Member or an Affiliate of such Member to comply with any reporting requirements
under (i) the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder, (ii) the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder, and (iii) any national securities exchange or automated quotation system.
The reasonable incremental cost to GMOS of preparing and delivering such additional financial
statements, notes thereto and additional financial information, including any required incremental
audit fees and expenses, shall be reimbursed to GMOS by the Member requesting such reports and, in
the case of two or more Members requesting such additional information, equally by such Members.
Such cost shall be determined in accordance with Article III of the Accounting Procedure set forth
in Exhibit A to the applicable Services Agreement.

     (f) GMOS shall also cause to be prepared and delivered to each Member such other reports,
forecasts, studies, budgets and other information as the Management Committee may request from time
to time.

     (g) For purposes of clarification and not limitation, any audit or examination by a Member
pursuant to Section 3.5 of the COM Agreement may, at the option of such Member, include audit or
examination of the books, records and other support for the costs incurred pursuant to subsections
(b) and (e) of this Section 9.02.

48

 

     9.03 Bank Accounts. Funds of the Company shall be deposited in such banks or other
depositories as shall be designated from time to time by the Management Committee. All withdrawals
from any such depository shall be made only as authorized by the Management Committee and shall be
made only by check, wire transfer, debit memorandum or other written instruction.

ARTICLE 10

WITHDRAWAL

     10.01 No Right of Withdrawal. A Member has no power or right to voluntarily Withdraw from the
Company.

     10.02 Deemed Withdrawal. A Member is deemed to have Withdrawn from the Company upon the
occurrence of any of the following events:

     (a) the Member is deemed, pursuant to Section 7.01(a)(B) to have Withdrawn from
the Company;

     (b) there occurs an event that (i) makes it unlawful for the Member to continue
to be a Member or (ii) causes the Member’s continued membership in the Company to
subject the Company, any other Member, or any “affiliate” (as defined in PUHCA) of
any other Member to regulation under PUHCA, unless all other Members, in their Sole
Discretion, unanimously determine such regulation not to be burdensome and so inform
the Member subjected to such event in writing within three Business Days following
such event;

     (c) the Member becomes Bankrupt;

     (d) the Member dissolves and commences liquidation or winding-up; or

     (e) the Member commits a Default.

In the case of an event described in Section 10.02(b)(ii), if the regulation under PUHCA referred
to in said Section can be avoided by the Disposition by the affected Member of all or a portion of
its Membership Interest to another Person and the affected Member desires to effect such a
Disposition, then the affected Member shall have the option (but not the obligation) to avoid such
deemed Withdrawal by giving, within five Business Days after the three Business Day period referred
to above, the Disposition Notice referred to in Section 3.03(b)(ii)(A) with respect to such
Disposition,
and if the other Members do not exercise their Preferential Right in accordance therewith, the
affected Member must consummate the Disposition to such other Person within seven Business Days
after such Preferential Right is waived or deemed to be waived under the provisions of Section
3.03(b)(ii)(A) (or, if later, within five Business Days after the receipt of all applicable
Authorizations to the Disposition).

     10.03 Effect of Withdrawal. A Member that is deemed to have Withdrawn pursuant to Section
10.02 (a “Withdrawn Member”), must comply with the following requirements in connection with its
Withdrawal:

49

 

     (a) The Withdrawn Member ceases to be a Member immediately upon the occurrence of the
applicable Withdrawal event.

     (b) The Withdrawn Member shall not be entitled to receive any distributions from the
Company except as set forth in Section 10.03(e), and neither it nor its Representative shall
be entitled to exercise any voting or consent rights, or to appoint any Representative or
Alternative Representative to the Management Committee (and the Representative (and the
Alternative Representative) appointed by such Member shall be deemed to have resigned) or to
receive any further information (or access to information) from the Company. The Sharing
Ratio of such Member shall not be taken into account in calculating the Sharing Ratios of
the Members for any purposes. This Section 10.03(b) shall also apply to a Breaching Member;
but if a Breaching Member cures its breach during the applicable cure period, then any
distributions that were withheld from such Member shall be paid to it, without interest.

     (c) The Withdrawn Member must pay to the Company all amounts owed to it by such
Withdrawn Member.

     (d) The Withdrawn Member shall remain obligated for all liabilities it may have under
this Agreement or otherwise with respect to the Company that accrue prior to the Withdrawal.

     (e) In the event of a deemed Withdrawal under Section 10.02(b) or (c), the Withdrawn
Member shall be entitled to receive a portion of each distribution that is made by the
Company from and after the In-Service Date, equal to the product of the Withdrawn Member’s
Sharing Ratio as of the date of its Withdrawal times the aggregate amount of such
distribution; provided, however, that the Withdrawn Member’s rights under this Section
10.03(e) shall automatically terminate at such time as the Withdrawn Member has received an
aggregate amount under this Section 10.03(e) equal to the sum of (i) the positive balance in
the Withdrawn Member’s Capital Account, determined as of the date of the Withdrawal after
adjustment pursuant to the third and fourth sentences of Section 4.05(a), plus (ii) any
Indebtedness of the Company owed to such Member at the time of the Withdrawal. From the
date of the Withdrawal to the date of such payment, the former Capital Account balance of
the Withdrawn Member shall be recorded as a contingent obligation of the Company, and not as
a Capital Account, until such payment is made. The rights of a Withdrawn Member under this
Section 10.03(e) shall (A) be subordinate to the rights of any other creditor of the
Company, (B) not include any right on the part of the Withdrawn Member to receive any
interest (except as may otherwise be provided in the evidence of any Indebtedness of the
Company owed to such Withdrawn Member) or other amounts with respect thereto; (C) not
require the Company to make any distribution (the Withdrawing Member’s rights under this
Section 10.03(e) being limiting to receiving a portion of such distributions as the
Management Committee may, in its Sole Discretion, decide to cause the Company to make); (D)
not require any Member to make a Capital Contribution or a loan to permit the Company to
make a distribution or otherwise to pay the Withdrawing Member; and (E) be treated as a
liability of the Company for purposes of Section 12.02. Except as set forth in this Section
10.03(e), a Withdrawn Member shall not be entitled to receive any return of its Capital
Contributions or other payment from the Company in respect of its Membership Interest.

50

 

     (f) The Sharing Ratio of the Withdrawn Member shall be allocated among the remaining
Members in the proportion that each Member’s Sharing Ratio bears to the total Sharing Ratio
of all remaining Members, or in such other proportion as the Members may unanimously agree.

     (g) A deemed Withdrawal under Section 7.01(a)(B) shall carry no connotation or
implication that the Withdrawn Member has breached this Agreement or otherwise acted
contrary to the intent of this Agreement, it being understood that (i) each Member is
completely free to cast its vote as it wishes at the Management Committee meetings described
in such Sections and (ii) the concept of “deemed Withdrawal” in such Sections is merely a
convenient technique for permitting the continued development of the Initial Facilities by
the Members that desire to continue such development.

ARTICLE 11

DISPUTE RESOLUTION

     11.01 Disputes. This Article 11 shall apply to any dispute arising under or related to this
Agreement (whether arising in contract, tort or otherwise, and whether arising at law or in
equity), including (a) any dispute regarding the construction, interpretation, performance,
validity or enforceability of any provision of this Agreement or whether any Person is in
compliance with, or breach of, any provisions of this Agreement, and (b) the applicability of this
Article 11 to a particular dispute. Notwithstanding the foregoing, this Article 11 shall not apply
to any matters that, pursuant to the provisions of this Agreement, are to be resolved by a vote of
the Members (including through the Management Committee); provided, however, that (i) if there is a
failure to obtain an Ultramajority Interest or a Supermajority Interest (as applicable) with
respect to any matter within the scope of Section 6.02(i)(ii)(C) or 6.02(i)(iii)(B), the action to
be taken by the Company with respect to such matters can be determined pursuant to this Article 11,
(ii) any matter that is expressly stated herein to be determinable by arbitration may be so
determined pursuant to this Article 11 and (iii) if a vote, approval, consent, determination or
other decision must, under the terms of this Agreement, be made (or withheld) in accordance with a
standard other than Sole Discretion (such as a reasonableness standard), then the issue of whether
such standard has been satisfied may be a dispute to which this Article 11 applies. Any dispute to
which this Article 11 applies is referred to herein as a “Dispute.” With respect to a particular
Dispute, each Member that is a party to such Dispute is referred to herein as a “Disputing Member.”
The provisions of this Article 11 shall be the exclusive method of resolving Disputes.

     11.02 Negotiation to Resolve Disputes. If a Dispute arises, the Disputing Members shall
attempt to resolve such Dispute through the following procedure:

     (a) first, the Representative of each of the Disputing Members shall promptly meet
(whether by phone or in person) in a good faith attempt to resolve the Dispute;

     (b) second, if the Dispute is still unresolved after 20 Days following the commencement
of the negotiations described in Section 11.02(a), then the chief executive officer (or his
designee) of the Parent of each Disputing Member shall meet (whether by phone or in person)
in a good faith attempt to resolve the Dispute; and

51

 

     (c) third, if the Dispute is still unresolved after 10 Days following the commencement
of the negotiations described in Section 11.02(b), then any Disputing Party may submit such
Dispute to binding arbitration under this Article 11 by notifying the other Disputing
Members (an “Arbitration Notice”).

     11.03 Selection of Arbitrator. (a) Any arbitration conducted under this Article 11 shall be
heard by a sole arbitrator (the “Arbitrator”) selected in accordance with this Section 11.03. Each
Disputing Member and each proposed Arbitrator shall disclose to the other Disputing Members any
business, personal or other relationship or Affiliation that may exist between such Disputing
Member and such proposed Arbitrator, and any Disputing Member may disapprove of such proposed
Arbitrator on the basis of such relationship or Affiliation.

     (b) The Disputing Member that submits a Dispute to arbitration shall designate a proposed
Arbitrator in its Arbitration Notice. If any other Disputing Member objects to such proposed
Arbitrator, it may, on or before the tenth Day following delivery of the Arbitration Notice, notify
all of the other Disputing Members of such objection. All of the Disputing Members shall attempt
to agree upon a mutually-acceptable Arbitrator. If they are unable to do so within 20 Days
following delivery of the notice described in the immediately-preceding sentence, any Disputing
Member may request the American Arbitration Association (or, if such Association has ceased to
exist, the principal successor thereto) (the “AAA”) to designate the Arbitrator. If the Arbitrator
so chosen shall die, resign or otherwise fail or becomes unable to serve as Arbitrator, a
replacement Arbitrator shall be chosen in accordance with this Section 11.03.

     11.04 Conduct of Arbitration. The Arbitrator shall expeditiously (and, if possible, within 90
Days after the Arbitrator’s selection) hear and decide all matters concerning the Dispute. Any
arbitration hearing shall be held in the City of Houston, Texas. The arbitration shall be
conducted in accordance with the then-current Commercial Arbitration Rules of the AAA (excluding
rules governing the payment of arbitration, administrative or other fees or expenses to the
Arbitrator or the AAA), to the extent that such Rules do not conflict with the terms of this
Agreement. Except as expressly provided to the contrary in this Agreement, the Arbitrator shall
have the power (a) to gather such materials, information, testimony and evidence as it deems
relevant to the dispute before it (and each Member will provide such materials, information,
testimony and evidence requested by the Arbitrator, except to the extent any information so
requested is proprietary, subject to a third-party confidentiality restriction or to an
attorney-client or other privilege) and (b) to grant injunctive relief and enforce specific
performance.
If it deems necessary, the Arbitrator may propose to the Disputing Members that one or more other
experts be retained to assist it in resolving the Dispute. The retention of such other experts
shall require the unanimous consent of the Disputing Members, which shall not be unreasonably
withheld. Each Disputing Member, the Arbitrator and any proposed expert shall disclose to the
other Disputing Members any business, personal or other relationship or Affiliation that may exist
between such Disputing Member (or the Arbitrator) and such proposed expert; and any Disputing
Member may disapprove of such proposed expert on the basis of such relationship or Affiliation.
The decision of the Arbitrator (which shall be rendered in writing) shall be final, nonappealable
and binding upon the Disputing Members and may be enforced in any court of competent jurisdiction;
provided that the Members agree that the Arbitrator and any court enforcing the award of the
Arbitrator shall not have the right or authority to award punitive, special, consequential or
exemplary damages to any Disputing Member. The responsibility for paying the costs and expenses of
the arbitration, including compensation to the Arbitrator and any experts retained by the
Arbitrator, shall be allocated among the Disputing Members in a manner determined

52

 

by the Arbitrator to be fair and reasonable under the circumstances. Each Disputing Member shall be responsible for
the fees and expenses of its respective counsel, consultants and witnesses, unless the Arbitrator
determines that compelling reasons exist for allocating all or a portion of such costs and expenses
to one or more other Disputing Members.

ARTICLE 12

DISSOLUTION, WINDING-UP AND TERMINATION

     12.01 Dissolution. The Company shall dissolve and its affairs shall be wound up on the first
to occur of the following events (each a “Dissolution Event”):

     (a) the unanimous consent of the Management Committee to dissolve the Company;

     (b) entry of a decree of judicial dissolution of the Company under Section 18-802 of
the Act;

     (c) the Disposition or abandonment of all or substantially all of the Company’s
business and assets; or

     (d) an event that makes it unlawful for the business of the Company to be carried on.

     12.02 Winding-Up and Termination. (a) On the occurrence of a Dissolution Event, the
Management Committee shall designate a Member or other Person to serve as liquidator. The
liquidator shall proceed diligently to wind up the affairs of the Company and make final
distributions as provided herein and in the Act. The costs of winding-up shall be borne as a
Company expense. Until final distribution, the liquidator shall continue to operate the Company
properties with all of the power and authority of the Members. The steps to be accomplished by the
liquidator are as follows:

     (i) as promptly as possible after dissolution and again after final winding-up, the
liquidator shall cause a proper accounting to be made by a recognized firm of certified
public
accountants of the Company’s assets, liabilities, and operations through the last calendar
day of the month in which the dissolution occurs or the final winding-up is completed, as
applicable;

     (ii) the liquidator shall discharge from Company funds all of the Indebtedness of the
Company and other debts, liabilities and obligations of the Company (including all expenses
incurred in winding-up and any loans described in Section 4.02) or otherwise make adequate
provision for payment and discharge thereof (including the establishment of a cash escrow
fund for contingent liabilities in such amount and for such term as the liquidator may
reasonably determine); and

     (iii) all remaining assets of the Company shall be distributed to the Members as
follows:

53

 

     (A) the liquidator may sell any or all Company property, including to Members,
and any resulting gain or loss from each sale shall be computed and allocated to the
Capital Accounts of the Members in accordance with the provisions of Article 5;

     (B) with respect to all Company property that has not been sold, the fair
market value of that property shall be determined and the Capital Accounts of the
Members shall be adjusted to reflect the manner in which the unrealized income,
gain, loss, and deduction inherent in property that has not been reflected in the
Capital Accounts previously would be allocated among the Members if there were a
taxable disposition of that property for the fair market value of that property on
the date of distribution; and

     (C) Company property (including cash) shall be distributed among the Members in
accordance with Section 5.02; and those distributions shall be made by the end of
the taxable year of the Company during which the liquidation of the Company occurs
(or, if later, 90 Days after the date of the liquidation).

     (b) The distribution of cash or property to a Member in accordance with the provisions of this
Section 12.02 constitutes a complete return to the Member of its Capital Contributions and a
complete distribution to the Member of its Membership Interest and all the Company’s property and
constitutes a compromise to which all Members have consented pursuant to Section 18-502(b) of the
Act. To the extent that a Member returns funds to the Company, it has no claim against any other
Member for those funds.

     (c) No dissolution or termination of the Company shall relieve a Member from any obligation to
the extent such obligation has accrued as of the date of such dissolution or termination. Upon
such termination, any books and records of the Company that there is a reasonable basis for
believing will ever be needed again shall be furnished to GMOS, who shall keep such books and
records (subject to review by any Person that was a Member at the time of dissolution) for a period
at least three years. At such time as GMOS no longer agrees to keep such books and records, it
shall offer the Persons who were Members at the time of dissolution the opportunity to take over
such custody, shall deliver such books and records to such Persons if they elect to take over such
custody
and may destroy such books and records if they do not so elect. Any such custody by such Persons
shall be on such terms as they may agree upon among themselves.

     12.03 Deficit Capital Accounts. No Member will be required to pay to the Company, to any
other Member or to any third party any deficit balance that may exist from time to time in another
Member’s Capital Account.

     12.04 Certificate of Cancellation. On completion of the distribution of Company assets as
provided herein, the Members (or such other Person or Persons as the Act may require or permit)
shall file a certificate of cancellation with the Secretary of State of Delaware, cancel any other
filings made pursuant to Section 2.05, and take such other actions as may be necessary to terminate
the existence of the Company. Upon the filing of such certificate of cancellation, the existence
of the Company shall terminate (and the Term shall end), except as may be otherwise provided by the
Act or other applicable Law.

54

 

ARTICLE 13

GENERAL PROVISIONS

     13.01 Offset. Whenever the Company is to pay any sum to any Member, any amounts that Member
owes the Company may be deducted from that sum before payment.

     13.02 Notices. Except as expressly set forth to the contrary in this Agreement, all notices,
requests or consents provided for or permitted to be given under this Agreement must be in writing
and must be delivered to the recipient in person, by courier or mail or by facsimile or other
electronic transmission. A notice, request or consent given under this Agreement is effective on
receipt by the Member to receive it; provided, however, that a facsimile or other electronic
transmission that is transmitted after the normal business hours of the recipient shall be deemed
effective on the next Business Day. All notices, requests and consents to be sent to a Member must
be sent to or made at the addresses given for that Member on Exhibit A or in the instrument
described in Section 3.03(b)(iv)(A)(II) or 3.04, or such other address as that Member may specify
by notice to the other Members. Any notice, request or consent to the Company must be given to all
of the Members. Whenever any notice is required to be given by Law, the Delaware Certificate or
this Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before
or after the time stated therein, shall be deemed equivalent to the giving of such notice.

     13.03 Entire Agreement; Superseding Effect. This Agreement constitutes the entire agreement
of the Members and their Affiliates relating to the Company and the transactions contemplated
hereby and supersedes all provisions and concepts contained in all prior agreements.

     13.04 Effect of Waiver or Consent. Except as otherwise provided in this Agreement, a waiver
or consent, express or implied, to or of any breach or default by any Member in the performance by
that Member of its obligations with respect to the Company is not a consent or waiver to or of any
other breach or default in the performance by that Member of the same or any other obligations of
that Member with respect to the
Company. Except as otherwise provided in this Agreement, failure on the part of a Member to
complain of any act of any Member or to declare any Member in default with respect to the Company,
irrespective of how long that failure continues, does not constitute a waiver by that Member of its
rights with respect to that default until the applicable statute-of-limitations period has run.

     13.05 Amendment or Restatement. This Agreement or the Delaware Certificate may be amended or
restated only by a written instrument executed (or, in the case of the Delaware Certificate,
approved) by a Unanimous Interest.

     13.06 Binding Effect. Subject to the restrictions on Dispositions set forth in this
Agreement, this Agreement is binding on and shall inure to the benefit of the Members and their
respective successors and permitted assigns.

     13.07 Governing Law; Severability. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR
PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF
ANOTHER JURISDICTION. In the event of a direct conflict between the provisions of this
Agreement and any mandatory, non-waivable provision of the Act, such provision of the Act shall
control. If any provision of the Act provides that it may

55

 

be varied or superseded in a limited
liability company agreement (or otherwise by agreement of the members or managers of a limited
liability company), such provision shall be deemed superseded and waived in its entirety if this
Agreement contains a provision addressing the same issue or subject matter. If any provision of
this Agreement or the application thereof to any Member or circumstance is held invalid or
unenforceable to any extent, (a) the remainder of this Agreement and the application of that
provision to other Members or circumstances is not affected thereby, and (b) the Members shall
negotiate in good faith to replace that provision with a new provision that is valid and
enforceable and that puts the Members in substantially the same economic, business and legal
position as they would have been in if the original provision had been valid and enforceable.

     13.08 Further Assurances. In connection with this Agreement and the transactions contemplated
hereby, each Member shall execute and deliver any additional documents and instruments and perform
any additional acts that may be necessary or appropriate to effectuate and perform the provisions
of this Agreement and those transactions; provided, however, that this Section 13.08 shall not
obligate a Member to furnish guarantees or other credit supports by such Member’s Parent or other
Affiliates.

     13.09 Waiver of Certain Rights. Each Member irrevocably waives any right it may have to
maintain any action for dissolution of the Company or for partition of the property of the Company.

     13.10 Counterparts. This Agreement may be executed in any number of counterparts with the
same effect as if all signing parties had signed the same document. All counterparts shall be
construed together and constitute the same instrument.

     13.11 Fair Market Value Determination.

     (a) Preferential Purchase Right. If the Fair Market Value of a Membership Interest is to be
determined for purposes of Section 3.03(b)(ii), the Disposing Member, on the one side, and all
other Members who in good faith have an interest in possibly exercising the applicable Preferential
Right, on the other side, shall seek to determine such Fair Market Value by mutual agreement. As
soon as either side decides that mutual agreement will not be reached, it may give notice to the
other side that it elects to initiate the process set forth in Section 13.11(c) to determine such
Fair Market Value.

     (b) Change of Member Control. If the Fair Market Value of a Membership Interest is to be
determined for purposes of Section 3.03(b)(vi), the Changing Member, on the one side, and all other
Members who in good faith have an interest in possibly exercising the applicable Buy-out Right, on
the other side, shall seek to determine such Fair Market Value by mutual agreement. As soon as
either side decides that mutual agreement will not be reached, it may give notice to the other side
that it elects to initiate the process set forth in Section 13.11(c) to determine such Fair Market
Value.

     (c) Appraisal. The side (the “First Side”) that gives the notice (the “FMV Notice”) to the
other side (the “Second Side”) pursuant to Section 13.11(a) or (b) shall include in the FMV Notice
the name of the appraisal firm selected by the First Side. Within 30 Days after the giving of the
FMV Notice, the Second Side shall notify (the “Second Notice”) the First Side of the appraisal firm
selected by the Second Side, provided that, if the Second Side fails to so select its appraisal
firm, the Appraisal Committee shall consist solely of the appraisal firm selected by the First
Side. The two

56

 

appraisal firms so selected (if applicable) shall select a third appraisal firm
within 15 Days after the giving of the Second Notice, and if they fail to do so within such period,
such third firm will be selected by the American Arbitration Association at the request of either
side within 10 Days after such request (such third firm, together with the appraisal firms selected
by the First Side and the Second Side, being herein called the “Appraisal Committee”). Within 30
Days after the last member of the Appraisal Committee is selected, each of the First Side and
Second Side shall submit a proposed Fair Market Value to the Appraisal Committee, together with any
supporting documentation such side deems appropriate. If either side fails to submit its proposed
Fair Market Value within the required time period, the Fair Market Value proposed by the other side
(assuming such other side has submitted its proposed Fair Market Value within the required time
period) shall be deemed to be the Fair Market Value, and same shall be deemed to be determined as
of the last day of such time period. If both sides submit their respective proposed Fair Market
Value on a timely basis, the Appraisal Committee shall determine, by majority vote, the Fair Market
Value (which must be one of the two proposals) as promptly as possible (and in any event on or
before the 30th Day after submittal of the latter of the two competing proposals), which
determination shall be final and binding on both sides. The cost of such appraisal shall be paid
in equal portions by both sides, except that each side shall bear the fees and expenses of the
appraisal firm selected by it. Each appraisal firm selected pursuant to this Section 13.11(c)
shall be an investment banking, accounting or other firm that performs appraisal and valuation
services. Each side shall provide to the other and, if applicable, the Appraisal Committee, all
information reasonably requested by them.

[Remainder of page intentionally left blank. Signature page follows.]

57

 

     IN WITNESS WHEREOF, the Members have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 
	 	 	MEMBERS:
	 
	 	 	 	 
	 	 	SPECTRA ENERGY SOUTHEAST PIPELINE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Fiedorek
	 

	 	 	 	 
	 

	 	Name:	 	Mark Fiedorek
	 

	 	Title:	 	President
	 
	 	 	 	 
	 	 	WGP GULFSTREAM PIPELINE COMPANY, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Frank J. Ferazzi
	 

	 	 	 	 
	 

	 	Name:	 	Frank J. Ferazzi
	 

	 	Title:	 	Vice President

[Signature page to Second Amended and Restated LLC Agreement of Gulfstream Natural Gas System, L.L.C.]

 

 

EXHIBIT A

MEMBERS

	 	 	 	 	 	 	 	 	 
	 	 	Sharing	 	 	 	 
	Name and Address	 	Ratio	 	Parent	 	Representative and Alternate Representatives
	 
	Spectra Energy Southeast Pipeline Corporation

	 	 	50	%	 	Spectra Energy Corp
	 	Guy G. Buckley –Representative
	5400 Westheimer Court
	 	 	 	 	 	 	 	 
	Houston, Texas 77056-5310

	 	 	 	 	 	 	 	Mark Fiedorek — Alternate Representative
	Attn: Brad Reese
	 	 	 	 	 	 	 	 
	          2701 North Rocky Point Drive
	 	 	 	 	 	 	 	 
	Suite 1050, Tampa, Florida 33607
	 	 	 	 	 	 	 	 
	Fax: (813) 289-4438
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WGP Gulfstream Pipeline Company, L.L.C.

	 	 	50	%	 	The Williams Companies, Inc.
	 	Frank J. Ferazzi – Representative
	2800 Post Oak Blvd.
	 	 	 	 	 	 	 	 
	Houston, Texas 77056

	 	 	 	 	 	 	 	James C. Moore – Alternate Representative
	Attn: Frank J. Ferazzi
	 	 	 	 	 	 	 	 
	          Vice President

	 	 	 	 	 	 	 	Richard D. Rodekohr – Alternate Representative
	Fax: (713) 215-4269
	 	 	 	 	 	 	 	 

Exhibit A
– Page 1

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