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exhibit4_2.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

                                                Exhibit 4.2

    Execution Version

    LOAN
AGREEMENT

    

    

    

    

    

    BETWEEN

    

    

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    

    AND

    

    GULF
SOUTH PIPELINE COMPANY, LP

    

    

    

    

    

    

    

    

    

    

    Dated
as of December 1, 2008

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    TABLE OF CONTENTS

    

     

    ARTICLE
I.  DEFINITIONS                                                                                                                                                                                        
1

    Section
1.1.  Definitions                                                                                                                                                                                      
1  

    ARTICLE
II.  REPRESENTATIONS                                                                                                                                                                           6  

    Section
2.1.  Representations of the
Issuer                                                                                                                                                      6

    Section
2.2.  Representations of
Company                                                                                                                                                      
6    

    Section
2.3.  Benefits Under the
Act                                                                                                                                                                 8        

    ARTICLE
III.  COMPLETION OF PROJECT; ISSUANCE OF
BONDS                                                                                                                8

    Section
3.1.  Completion of Project; Best
Efforts                                                                                                                                             8

    Section
3.2.  Issuance of
Bonds                                                                                                                                                                         
8

    Section
3.3.  Loan; Disposition of Bond
Proceeds                                                                                                                                          8

    Section
3.4.  Requisition for Project
Funds                                                                                                                                                      
9

    Section
3.5.  Advance Under Loan
Agreement                                                                                                                                               
9

    Section
3.6.  Certificate of
Completion                                                                                                                                                              
9

    Section
3.7.  Completion of
Project                                                                                                                                                                   
9

    Section
3.8.  Default by
Contractor                                                                                                                                                                 
10

    Section
3.9.  Investment of Project
Fund                                                                                                                                                        
10

    ARTICLE
IV.  SECURITY; LOAN PAYMENTS; OTHER
OBLIGATIONS                                                                                                       
10

    Section
4.1.  Note                                                                                                                                                                                               
10

    Section
4.2.  Loan
Payments                                                                                                                                                                             10

    Section
4.3.  Obligation to Make Payments
Absolute                                                                                                                                 
11

    Section
4.4.  Sole Possession of Project by the
Company                                                                                                                          
11

    Section
4.5.  Maintenance of
Project                                                                                                                                                              
11

    Section
4.6.  Taxes and Assessments; Tax
Indemnity                                                                                                                                 
11

    Section
4.7.  Operation of
Project                                                                                                                                                                     12

    Section
4.8.  Payment of
Expenses                                                                                                                                                                  
12

    Section
4.9.  Payments Continue Upon Destruction of
Project                                                                                                                  
12

    Section
4.10.  Payment of Initial Administrative
Fee                                                                                                                                    
12

    Section
4.11.  Release and Indemnification of the
Issuer                                                                                                                             12

    Section
4.12.  Insurance                                                                                                                                                                                    
13

    ARTICLE
V.  SPECIAL
COVENANTS                                                                                                                                                                   
13

    Section
5.1.  No Warranty as to Suitability of Project by the
Issuer                                                                                                         
13

    Section
5.2.  Continuation of Existence of
Company                                                                                                                                   
13

    Section
5.3.  [Reserved]                                                                                                                                                                                    
14

    Section
5.4.  Agreement to
Cooperate                                                                                                                                                            
14

    Section
5.5.  Qualification in
Mississippi                                                                                                                                                       
14

    Section
5.6.  [Reserved]                                                                                                                                                                                    
14

    Section
5.7.  Maintenance                                                                                                                                                                                 14

    Section
5.8.  Environmental Law
Compliance                                                                                                                                               
14

    Section
5.9.  [Reserved]                                                                                                                                                                                    
15

    Section
5.10.  [Reserved]                                                                                                                                                                                  
15

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
5.11.  Maintenance of Books and Records;
Inspection                                                                                                                
15

    Section
5.12.  Affirmative
Covenants                                                                                                                                                             
15

    Section
5.13.  [Reserved]                                                                                                                                                                                  
15

    Section
5.14.  County and City Approval of Ad Valorem Tax
Exemptions                                                                                               
15

    ARTICLE
VI.  ASSIGNMENT, LEASE AND SALE OF
PROJECT                                                                                                                    
15

    Section
6.1.  Disposal of Project and Assets by
Company                                                                                                                        
16

    ARTICLE
VII.  EVENTS OF DEFAULT AND
REMEDIES                                                                                                                                 
16

    Section
7.1.  Default                                                                                                                                                                                          
16

    Section
7.2.  Remedies Upon
Default                                                                                                                                                             
17

    Section
7.3.  No Remedy
Exclusive                                                                                                                                                                 
17

    Section
7.4.  Payment of Fees and
Expenses                                                                                                                                                 
17

    Section
7.5.  Effect of
Waiver                                                                                                                                                                           18

    ARTICLE
VIII.  PREPAYMENT OF
LOAN                                                                                                                                                           
18

    Section
8.1.  Obligations to Accelerate Loan
Payments                                                                                                                              
18

    ARTICLE
IX.  MISCELLANEOUS                                                                                                                                                                           18

    Section
9.1.  Notices                                                                                                                                                                                           18

    Section
9.2.  Parties
Interested                                                                                                                                                                          19

    Section
9.3.  Amendment to
Agreement                                                                                                                                                         
19

    Section
9.4.  Counterparts                                                                                                                                                                                 
19

    Section
9.5.  Severability of Invalid
Provisions                                                                                                                                             
19

    Section
9.6.  Governing
Law                                                                                                                                                                              20

    Section
9.7.  No Oral
Agreement                                                                                                                                                                       20

    

     

    EXHIBIT
A:                                BUILDING
DESCRIPTION

    EXHIBIT
B:                                PROJECT
SITE

    EXHIBIT
C:                                PROMISSORY
NOTE

    EXHIBIT
D:                                BOND
ADVANCE AND PAYMENT GRID

    EXHIBIT
E:                                FORM
OF REQUISITION CERTIFICATE

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    THIS LOAN AGREEMENT, dated as
of December 1, 2008, between Mississippi Business Finance Corporation, a public
corporation of the State of Mississippi (the "Issuer") and Gulf South Pipeline
Company, LP, a Delaware limited partnership (the "Company"),

    

    W
I T N E S S E T H:

     

    WHEREAS, the Issuer is
authorized by the provisions of Title 57, Chapter 10, Article 7, of the
Mississippi Code of 1972, as amended and supplemented (the "Act"), to, among
other things, provide and finance economic development projects to eligible
companies in the State;

     

    WHEREAS, the Issuer has
determined that the Company is an "eligible company" as defined by the Act in
need of assistance to permanently finance the Cost (as hereinafter defined) of
the Project (as hereinafter defined);

     

    WHEREAS, the Issuer is
authorized pursuant to the Act to issue its revenue bonds and to lend the
proceeds thereof to enable eligible companies to borrow to finance the Cost of
said projects;

     

    WHEREAS, the Company has
requested the Issuer to issue its revenue bonds and to lend the proceeds from
the sale thereof to the Company to finance a portion of the Cost of the Project
(as hereinafter defined);

     

    WHEREAS, the Issuer has, by
due corporate action, authorized the issuance, from time to time, of its
Mississippi Business Finance Corporation Taxable Industrial Development Revenue
Bonds, (Gulf South Pipeline Company, LP Project), Series 2008 (the "Bonds"),
pursuant to the Act in the maximum aggregate principal amount of $175,000,000 in
order to loan the proceeds thereof to the Company (the "Loan") to finance the
Project, pursuant to a contractual arrangement whereby the amount of Loan
Payments (as hereinafter defined) to be made to the Issuer by the Company shall
be sufficient to pay the principal of, premium, if any, and interest on
such  Bonds secured by such Loan Payments as and when the same shall
become due and payable;

     

    WHEREAS, Boardwalk Pipelines,
LP ("Purchaser") has agreed to purchase the Bonds (as hereinafter defined) the
proceeds of which will be loaned to the Company by the Issuer to finance the
Project (as hereinafter defined); and

     

    WHEREAS, the Bonds are to be
issued pursuant to the Indenture (as hereinafter defined) to provide monies for
such Loan; and the Company will execute a Note (as hereinafter defined) pursuant
to this Agreement (as hereinafter defined) to evidence and secure its
obligations to repay said Loan.

     

    NOW,
THEREFORE, THIS AGREEMENT WITNESSETH:

     

    That the
parties hereto, intending to be legally bound hereby and in consideration of the
mutual covenants hereinafter contained, do hereby agree as follows:

     

    ARTICLE
I.

     

    DEFINITIONS

     

    Section
1.1. Definitions.  The
terms set forth below shall have the following meanings in this Loan Agreement,
unless the context clearly otherwise requires. Except where the context
otherwise requires, words importing the singular number shall include the plural
number and vice versa. Capitalized terms used and not defined herein shall have
the meanings ascribed to them in the Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     "Act"
shall mean Title 57, Chapter 10, Article 7, of the Mississippi Code of 1972, as
amended and supplemented.

     

     "Administration
Expenses" shall mean the reasonable, necessary and documented expenses incurred
by the Issuer pursuant to this Agreement or the Indenture, including the Initial
Administrative Fee, and the compensation and expenses paid to or incurred by the
Trustee or any Paying Agent under the Indenture.

     

     "Agreement"
shall mean this Loan Agreement as amended or supplemented from time to time in
accordance with the terms hereof.

     

    "Authorized
Company Representative" shall mean any person or persons from time to time
designated to act on behalf of the Company by a written certificate, signed on
behalf of the Company by the President or one of the Vice Presidents of its
general partner or other duly authorized Person and the Secretary or Treasurer
of its general partner or other duly authorized Person and furnished to the
Issuer and the Trustee, containing the specimen signature of each such
person.

     

    "Bondholder"
or "holder of the Bonds" or "holder" shall mean the Registered Owner(s) of any
fully registered Bond.

     

    "Bond
Counsel" shall mean Butler, Snow, O’Mara, Stevens & Cannada, PLLC, Jackson,
Mississippi, or an attorney-at-law or a firm of attorneys, designated by the
Issuer, of nationally recognized standing in matters pertaining to bonds issued
by states and their political subdivisions, duly admitted to the practice of law
before the highest Court of any state of the United States of
America.

     

    "Bond
Counsel's Opinion" shall mean an opinion signed by Bond Counsel and satisfactory
to the Issuer, the Trustee, and the Purchaser.

     

    "Bond
Fund" shall mean the fund established pursuant to Section 6.1 of the
Indenture.

     

    "Bond
Purchase Agreement" shall mean the Bond Purchase Agreement dated as of December
1, 2008, among the Issuer, the Company and the Purchaser.

     

    "Bond
Register" and "Bond Registrar" shall have the respective meanings specified in
Section 2.9 of the Indenture.

     

    "Bonds,"
or "Bond" means up to $175,000,000 Mississippi Business Finance Corporation
Taxable Industrial Development Revenue Bonds, Series 2008 (Gulf South Pipeline
Company, LP Project) issued under the Indenture; and any Bonds thereafter
authenticated and delivered in lieu of or in substitution for such Bonds,
pursuant to the provisions of' the Indenture.

     

    "Building"
or "Buildings" shall mean the buildings and improvements generally described on
Exhibit A hereto constructed in part through a loan of the proceeds of the Bonds
and located on the Project Site, as described in Exhibit B to this Agreement,
and all additions, modifications, renovations, rehabilitations, expansions,
construction, and improvements thereto, as they may at any time
exist.

     

    "Business
Day" shall mean any day, other than a Saturday or Sunday or other day, on which
the Purchaser, Trustee or Company is not required or authorized by law to remain
closed.

     

    "Company"
shall mean Gulf South Pipeline Company, LP, a Delaware limited partnership, or
any person or entity which is the surviving, resulting or transferee person in
any merger, consolidation or transfer of assets permitted under Section 5.2 of
this Agreement and shall also mean, unless the context otherwise requires, and
any assignee of this Agreement as permitted by Section 6.1 of this
Agreement.

     

    
      
        
        

      

      
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    "Completion
Date" shall mean the date of completion of the Project, as that date shall be
certified pursuant to Section 5.3 of the Indenture.

     

    "Cost" or
"Cost of the Project" shall mean, and be deemed to include to the extent
permitted by the Act, costs incurred after April 15, 2006 with respect the
Mississippi Expansion Project and February 10, 2007 with respect to the
Southeast Expansion Project, (a) obligations incurred for labor, Equipment and
other expenses paid to contractors, builders and materialmen in connection with
the construction, installation and equipping of the Project and improvements
thereto including, but not limited to, improvements to the Project Site; (b) the
cost of contract or performance bonds or of other bonds and of insurance of all
kinds that may be required or necessary prior to or during the course of
construction of the Project, (c) all costs of architectural and engineering
services, including the expenses of the Issuer and the Company for test borings,
surveys, test and pilot operations, estimates, plans and specifications and
preliminary investigations therefor, and for supervising construction, as well
as for the performance of all other duties required by or consequent upon the
proper completion of the Project; (d) compensation and expenses of the Issuer
and the Trustee, legal, accounting, financial and printing expenses, fees and
all other expenses incurred in connection with the issuance of the Bonds, which
are not otherwise provided for under the terms of this Agreement; (e) all other
costs which the Issuer or the Company shall be required to pay under the terms
of any contract or contracts for the acquisition (by purchase, lease or
otherwise), construction, installation and equipping of the Project; (f) any
sums required to reimburse the Issuer or the Company for advances made by either
of them for any of the above items, or for any other costs incurred and for work
done by any of them, which are properly chargeable to the Project; (g)
Administration Expenses; and (h) any other expenses or fees of the Issuer or the
Trustee, which in the opinion of the Issuer or the Trustee, are related to the
Project or the Bonds, including but not limited to, commitment and legal fees
and the costs, fees and expenses in connection with the initial issuance and
sale of the Bonds.

     

    "Equipment"
shall mean those items of machinery, equipment, fixtures and other tangible
personal property, which have been or are to be acquired and installed in the
Buildings or elsewhere at or on the Project Site with the proceeds of the Bonds
and any item of machinery, equipment, fixtures and other tangible personal
property which may be acquired and installed in the Buildings or elsewhere on
the Project Site in substitution thereof or in addition thereto pursuant to the
provisions of this Agreement, and any renewals and replacements of any of the
foregoing. At such time as the Project is completed, a complete detailed list of
Equipment and other items of personalty acquired with the proceeds of the Bonds
can be found in the records of the Project Fund maintained by the
Trustee.

     

    "Event(s)
of Default" shall mean any Event(s) of Default specified in Section 7.1 of this
Agreement.

     

    "Governmental
Authority" means any federal, state, local, foreign or other governmental or
administrative body, instrumentality, department or agency or any court,
tribunal, administrative hearing body, arbitration panel, commission, or other
similar dispute-resolving panel or body.

     

    "Indenture"
shall mean the Indenture related to the Bonds dated as of December 1, 2008,
between the Issuer and the Trustee, as the same may be amended and supplemented
from time to time.

     

    "Initial
Administrative Fee" shall mean the initial fee of the Issuer with respect to the
Bonds in the amount of $70,000.00 which fee is required to be paid by the
Company to the Issuer pursuant to this Agreement.

     

    
      
        
        

      

      
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    "Investment
Securities" shall mean, only to the extent permitted by State law, any of the
following unless the Company has determined that the same are not at the time
legal investments of the Company's monies:

     

    (a) savings
accounts and certificates of deposit issued by a commercial bank or savings and
loan association incorporated under the laws of the United States of America or
any state thereof or the District Of Columbia having a capital stock and surplus
of more than $50,000,000, including the Trustee, or which are fully
collateralized by investments of the type described in (b) below or are rated
either A-I or A-2 by Standard & Poor's Corporation or P-I or P-2 by Moody's
Investors Service, Inc.;

     

    (b) bonds,
notes and other evidences of indebtedness of the United States of America or the
State and any other security unconditionally guaranteed as to the payment of
principal and interest by the United States of America or any agency or
instrumentality thereof;

     

    (c) repurchase
agreements involving the Purchase and resale of investments described in (b)
above; provided, that (i) the purchase price of any such agreement shall at no
time exceed the fair market value of the investments underlying the same, (ii)
each such agreement shall provide for the payment of cash or deposit of
additional investments at least monthly so that the sum of the fair market value
of investments and the amount of cash underlying the same shall remain at least
equal to the purchase price thereof, (iii) the Trustee shall take physical
possession of such investments or the Trustee shall be named as the record owner
of such investments in the records of a Federal Reserve Bank, in each case no
later than the time the purchase price therefor is paid by the Trustee, (iv) the
other party to such repurchase agreement shall be a commercial bank or savings
and loan association incorporated under the laws of the United States or any
state thereof or the District of Columbia or a securities firm registered under
the Securities Exchange Act of 1934, in either case having combined capital and
surplus of at least $50,000,000 including the Trustee, and (v) the repurchase
obligations are at the demand of the Trustee or have a maturity of less than one
year;

     

    (d) any money
market fund rated "AAA" by Moody's Investors Service, Inc. comprised of the
investments of the type described in paragraph (b); and

     

    (e) any other
investment or investment agreement as the Registered Owner(s) of not less than
fifty-one percent (51%) in the aggregate principal amount of the Bonds then
Outstanding may approve.

     

    "Issuer"
shall mean the Mississippi Business Finance Corporation, constituting a public
body corporate and a political subdivision of the State, its successors and
assigns, and any public corporation resulting from or surviving any
consolidation or merger to which it or its successors may be a
party.

     

    "Loan"
means the loan made by the Issuer to the Company from the proceeds of the
issuance of the Bonds.

     

    "Loan
Documents" shall mean this Agreement, the Indenture, the Bond Purchase
Agreement, the Note, the Bond, the Assignment of this Agreement, and the
Assignment of the Note, and any and all promissory notes executed by the Company
in favor of the Issuer, and all other security agreements, documents,
instruments, guarantees, certificates and agreements executed and/or delivered
by the Company, in connection with this Agreement, the Bonds, the Indenture and
the Bond Purchase Agreement.

     

    "Loan
Payments" shall mean the payments required to be made by the Company pursuant to
Section 4.2 hereof.

     

    "MBFC"
shall mean Mississippi Business Finance Corporation.

     

    
      
        
        

      

      
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    "Mississippi
Expansion Project" shall mean the construction of a natural gas pipeline through
Warren, Hinds, Copiah and Simpson Counties in Mississippi.

     

    "Note"
shall mean the promissory note of the Company issued by the Company to the
Issuer in accordance with Section 4.1 hereof, the form of which is attached
hereto as Exhibit C.

     

    "Outstanding,"
when used with reference to Bonds, shall mean, at any date as of which the
amount of outstanding Bonds is to be determined, the aggregate of all Bonds
authorized, issued, authenticated and delivered under the Indenture
except:

     

    (a)           Bonds
canceled or surrendered to the Trustee for cancellation pursuant to Section 2.12
of the Indenture prior to such date; and

     

    (b)           Bonds
in lieu of or in substitution for which other Bonds shall have been
authenticated and delivered pursuant to the Indenture unless proof satisfactory
to the Trustee and the Company is presented that any such Bond is held by a bona
fide holder in due course.

     

    In
determining whether holders or a requisite aggregate principal amount of Bonds
outstanding have concurred in any request, demand, authorization, direction,
notice, consent or waiver under the Indenture, Bonds which are owned by the
Company or the Issuer shall be disregarded and deemed not to be outstanding for
the purpose of any such determination; provided, however, that for the purpose
of determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Bonds
which the Trustee knows to be so owned shall be so disregarded.

     

    "Person"
or "person" shall mean an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
governmental authority, or other entity of whatever nature.

     

    "Project"
shall mean collectively, the Mississippi Expansion Project and the Southeast
Expansion Project.

     

    "Project
Fund" shall mean the fund created under Section 5.1 of the
Indenture.

     

    "Project
Site" shall mean the real property described in Exhibit B attached
hereto.

     

    "Purchaser"
shall mean Boardwalk Pipelines, LP.

     

    "Redemption
Price" shall mean the principal of and interest on the Bonds to be redeemed at
par, without premium, and all other amounts due and owing in respect to the
Bonds.

     

    "Registered
Owner(s)" shall mean the Person or Persons in whose name or names the particular
registered Bond or Bonds shall be registered on the Bond Register.

     

    "Revenues"
shall mean all payments, receipts and revenues payable by the Company to the
Issuer under this Agreement (except payment of Administration Expenses and
indemnification payments pursuant to Sections 4.2 and 4.11, respectively, of
this Agreement) and any other payments, receipts and revenues derived by the
Issuer from the Company under this Agreement.

     

    "Southeast
Expansion Project" shall mean the construction of a natural gas pipeline through
Simpson, Clarke, Jasper and Smith Counties in Mississippi.

     

    
      
        
        

      

      
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    "State"
shall mean the State of Mississippi.

     

    "Trustee"
shall have the meaning set forth in the Indenture.

     

    Section
1.2.      Accounting
Terms.  All accounting terms not specifically defined or
otherwise specified herein shall have the meanings generally attributed to such
terms under tax accrual accounting principles, as in effect from time to time,
consistently applied.

    

    ARTICLE
II.

     

    REPRESENTATIONS

     

    Section
2.1. Representations of the
Issuer.  The Issuer makes the following representations as the
basis for the undertakings on the part of the Company herein
contained:

     

    (a) The
Issuer is a public corporation of the State and is authorized pursuant to the
provisions of the Act to enter into the transactions contemplated by this
Agreement.

     

    (b) The
Issuer has full power and authority to enter into the transactions contemplated
by this Agreement and to carry out its obligations hereunder.

     

    (c) To the
best of the Issuer’s knowledge, the Issuer is not in default under any
provisions of the laws of the State material to the performance of its
obligations under this Agreement.

     

    (d) The
Issuer has been duly authorized to execute and deliver this Agreement and by
proper limited partnership action has duly authorized the execution and delivery
hereof and as to the Issuer, this Agreement is valid and legally binding and
enforceable in accordance with its terms, except to the extent that the
enforceability thereof may be limited (1) by bankruptcy, reorganization, or
similar laws limiting the enforceability of creditors' rights generally or (2)
by the availability of any discretionary equitable remedies.

     

    (e) The Loan
for the Cost of the Project by the Company, as provided by this Agreement, will
further the purposes of the Act, to wit: to induce the location or expansion of
commercial facilities within the State in order to advance the public purposes
of relieving unemployment.

     

    Section
2.2. Representations of
Company.  The Company makes the
following  representations as the basis for the issuance by the Issuer
of the Bonds and the undertakings on the part of the Issuer herein
contained:

     

    (a) The
Company is a limited partnership duly formed under the laws of the State of
Delaware, the Company is in good standing in the State of Delaware, the Company
is  duly qualified to transact business in the State of Mississippi
and the Company is in good standing in the State of Mississippi, has power to
enter into the Loan Documents, and by proper limited partnership action has duly
authorized the execution and delivery of the Loan Documents, and as to the
Company, the Loan Documents are valid and legally binding and enforceable in
accordance with their respective terms, except to the extent the enforceability
thereof may be limited (i) by bankruptcy, reorganization, or similar laws
limiting the enforceability of creditors' rights generally or (ii) by the
availability of any discretionary equitable remedies. A copy of a resolution of
the Board of Directors of the Company’s general partner authorizing this
Agreement and the execution of related documents by the officers of the general
partner of the Company shall be furnished by the Company at or prior to
closing.

     

    (b) The
Company is not in violation of any provision of its certificate of limited
partnership, its agreement of limited partnership, or any laws in any manner
material to its ability to perform its obligations under the Loan Documents, has
power to enter into the Loan Documents and has duly authorized the execution and
delivery of the Loan Documents by proper limited partnership
action.

     

    
      
        
        

      

      
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    (c) The
Project consists of the acquisition, construction and installation of Buildings
and Equipment as more particularly described in Exhibit A to this
Agreement.

     

    (d) The
estimated Cost of the Project exceeds the principal amount of the
Loan.

     

    (e) The
Company is engaged in a commercial enterprise and other permissible purposes
under the Act.

     

    (f) The
Company has been advised by the Issuer that it is an eligible company as defined
in the Act.

     

    (g) Company
is not in default under, and has not breached in any material respect, any
material agreement or instrument to which it is a party or by which it may be
bound, which default would materially and adversely affect the business or
financial condition of the Company. Neither the execution and delivery of the
Loan Documents, the consummation of the transactions contemplated hereby or
thereby, nor the fulfillment of or compliance with the terms and conditions of
the Loan  Documents, conflicts with or results in a breach of the
terms, conditions or provisions of any agreement or instrument to which the
Company is now a party or by which it, or any of its property, is bound, or
constitutes a default under any of the foregoing, or results in the creation or
imposition of any impermissible lien, charge or encumbrance whatsoever upon any
of the property or assets of the Company under the terms of any instrument or
agreement.

     

    (h) [Reserved].

     

    (i) [Reserved].

     

    (j) [Reserved].

     

    (k) All
information furnished by the Company to the Issuer and the Purchaser for the
purpose of approving the Project and the financing of the Loan through the
issuance and sale of the Bonds is true, accurate and complete in all material
respects as of the date hereof.

     

    (l) The Loan
is not being made to refinance any existing debt, except for the repayment of
existing debt which qualifies as a Cost of the Project, or any costs, expenses
or other obligations incurred by the Company or any other Person on behalf of
the Company prior to April 15, 2006, with respect to the Mississippi Expansion
Project, and February 10, 2007 with respect to the Southeast Expansion
Project.

     

    (m) There are
no suits or proceedings pending or to the knowledge of the Company threatened
against or affecting the Company, which, if adversely determined, would have a
material adverse effect on the transactions contemplated by the Loan Documents
or which in any way would adversely affect the enforcement or validity of the
Loan Documents or the ability of the Company to perform its obligations under
this Agreement, and there are no proceedings by or before any governmental
commission, board, bureau or other administrative agency pending or to the
knowledge of the Company threatened against or affecting the Company which, if
adversely determined, would have a material adverse effect on the transactions
contemplated by the Loan Documents or which in any way would adversely affect
the enforcement or validity of the Loan Documents or the ability of the Company
to perform its obligations under this Agreement.

     

    (n) The
Company acknowledges the terms and provisions of the Indenture and will comply
with such terms of the Indenture to the extent that such terms and provisions
are applicable to the Company.

     

    
      
        
        

      

      
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    Section
2.3. Benefits Under the
Act.  The parties hereto acknowledge that the Company has been
induced to proceed with the acquisition and construction of the Project in part
by the benefits conferred by the Act. The Issuer hereby agrees that the Company
shall be permitted to take advantage of all of the benefits provided by the Act
to the fullest extent therein set forth subject to the rules and regulations of
the Issuer. The Issuer agrees that it will not take any action to limit, curtail
or otherwise make unavailable to the Company any of the benefits available under
the Act.

     

    ARTICLE
III.

     

    COMPLETION
OF PROJECT; ISSUANCE OF BONDS

     

    Section
3.1. Completion of
Project.  Upon the issuance of the Bonds to finance the
Project, the Company, within three (3) years from the date of the Indenture,
will acquire, construct, install and equip such Project or cause the
Project  to be acquired, constructed, installed and equipped as herein
provided, and will use its commercially reasonable efforts to cause the
acquisition, construction, installation and equipping thereof to be completed
with all reasonable dispatch, not later than three (3) years from the date of
the Indenture, but if for any reason such acquisition, construction,
installation and equipping shall not be completed there shall be no resulting
diminution in or postponement of the payments required in Section 4.2 hereof to
be paid by the Company under this Agreement and the Note.

     

    Anything
in this Agreement notwithstanding, the Issuer shall not be obligated to complete
the acquisition, construction, installation and equipping of the Project upon
acceleration of the payment of the unpaid portion of the payments due pursuant
to this Agreement and the Note, and the making of all payments in the amount
required by and in accordance with the terms of this Agreement and the
Note.

     

    In order
to effectuate the purposes of this Agreement, the Company will make, execute,
acknowledge and deliver, or cause to be made, executed, acknowledged and
delivered, all contracts, orders, receipts, writings and instructions, in the
name of the Company or otherwise, with or to other persons, firms or
corporations, and in general do or cause to be done all such other things as may
be requisite or proper for the construction, installation and equipping of the
Project and fulfillment of the obligations of the Company under this
Agreement.

     

    The
Company will maintain such records in connection with the cost of the
construction, installation and equipping of the Project as to permit ready
identification thereof which records the Issuer, the Purchaser and the Trustee
shall have the right to inspect upon reasonable notice during regular business
hours.

     

    The
Company hereby grants to the Issuer, the Trustee and the Purchaser the right,
privilege and authority to take all actions and to do all other things necessary
to effectuate the purposes of this Agreement.

     

    Section
3.2. Issuance of
Bonds.  The Issuer, concurrent with or as soon as practical
after the execution of the Indenture, will use its best efforts to sell, issue
and deliver, from time to time, the Bonds to the Purchaser and deposit the
proceeds thereof, from time to time, with the Trustee in accordance with
Sections 5.1 and 6.1 of the Indenture.

     

    Except as
otherwise approved by the Issuer, no Bonds shall be issued under the provisions
of the Indenture with a dated date on or after December 1, 2011, which is three
(3) years following the date of this Agreement.

     

    Section
3.3. Loan; Disposition of Bond
Proceeds.  The Issuer, as Issuer of the Bonds, hereby agrees to
lend from the proceeds of the issuance and sale of the Bonds, the maximum
principal amount of up to $175,000,000 to the Company, for the purposes and in
accordance with the terms and conditions set forth in the
Indenture.

     

    
      
        
        

      

      
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    Section
3.4. Requisition for Project
Funds.  The Issuer has, in the Indenture, authorized and
directed the Trustee to make payments from the Project Fund to pay the Cost of
the Project, upon receipt by the Trustee, with a copy to the Purchaser, of an
original executed requisition certificate in the form of EXHIBIT E attached hereto
(upon which both the Issuer and the Trustee may rely conclusively and shall be
protected in relying as set forth in the Indenture) signed by an Authorized
Company Representative, and approved by the Purchaser stating with respect to
each payment to be made: (1) the requisition number, (2) the name of the Person
to whom payment is due or, in the event such payment is to reimburse the Issuer
or the Company, the name of the Person to whom payment previously has been made
(or, in the case of payments to the  Bond Fund, instructions to make
such payments to the Bond Fund), (3) the amount to be paid, (4) that there has
been no "Event of Default" under Section 7.1 of this Agreement by the Company
under this Agreement, and (5) that each obligation, item of cost or expense
mentioned therein has been properly incurred, is a proper charge against the
Project Fund and has not been the basis of any previous
withdrawal.  Upon request by the Trustee, copies of all invoices or
statements from a contractor, vendor or other payee supporting each requisition
for payment from the Project Fund and clearly identifying the property or
service comprising the Cost of the Project to be paid or reimbursed shall be
made available to the Trustee for review.

     

    If any
contract provides for retention by the Company of a portion of the contract
price, there shall be paid from the Project Fund only the net amount remaining
after deduction of such portion, until such retainage becomes due in accordance
with the terms of the contract.

     

    Section
3.5. Advance
Under Loan Agreement

     

    (a) The Loan
shall be advanced and remain outstanding as requested by the Company pursuant to
Section 2.1 of the Indenture. All advances shall bear interest at the rates
defined in the Indenture.

     

    (b) In
addition to the documents required to be submitted pursuant to Section 3.4 of
this Agreement in connection with each borrowing of funds under this Agreement,
the Company shall submit to the Purchaser (and simultaneously deliver copies
thereof to the Trustee) a written notice of borrowing (a "Notice of
Borrowing,"), in the form of Exhibit A to the Bond Purchase Agreement,
specifying the amount and date of the requested borrowing.

     

    Section
3.6. Certificate of
Completion.  After the Project is completed and ready to be
placed in service, the Trustee and the Issuer shall receive a certificate of an
Authorized Company Representative stating, that (a) the construction of the
Building has been completed substantially in accordance with the Plans and
Specifications, (b) the acquisition of the Equipment has been completed, (c) the
Project complies with all zoning, planning, building and all regulations of any
other governmental entities having jurisdiction over the Project and
(d) payment, or provision therefor of the Cost of the Building and the
Equipment has been made except for any cost of the Building and the Equipment
not then due and payable or the liability for payment of which is being
contested or disputed by the Company.  The Issuer and the Company
agree to cooperate in causing such certificates to be furnished to the Trustee
and the Issuer.

     

    Section
3.7. Obligation of the Company to Complete
the Project and to Pay Costs in Event Project Fund
Insufficient.  If the moneys in the Project Fund available for
payment of the Cost of the Project are not sufficient to pay the Cost of the
Project in full, the Company will complete or cause to be completed the Project
and pay or cause to be paid all of that portion of the Cost of the Project in
excess of the moneys available therefor in the Project Fund. The Issuer does not
make any warranty, either express or implied, that the moneys which will be paid
into the Project Fund will be sufficient to pay the Cost of the Project. If the
Company shall pay any portion of the Cost of the Project pursuant to the
provisions of this Section 3.7, it shall not be entitled to any reimbursement
therefor from the Issuer, the Trustee or the holders of any of the Bonds, nor
shall it be entitled to any diminution in or postponement of the Loan Payments
required in Section 4.2 hereof to be paid by the Company.

     

    
      
        
        

      

      
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    If, upon
the Completion Date for the Project, there shall be any surplus funds remaining
in the Project Fund not reserved to pay for the Cost of the Project, such funds
shall, (a) be deposited in the Bond Fund and used, at the earliest date
permissible under the terms of the Indenture without the payment of a call
premium or penalty, to pay principal on the Bonds through redemption or
retirement; and (b) be invested as provided for in the Indenture until such time
as such surplus funds are expended as provided for in this Section
3.7.

     

    Section
3.8. Default by
Contractor.  In the event of default of any supplier,
contractor or subcontractor under any contract made by it in connection with the
Project or in the event of a breach of warranty with respect to any materials,
workmanship or performance guaranty, the Company may proceed, either separately
or in conjunction with others, to pursue such remedies against the supplier,
contractor or subcontractor so in default and against each surety for the
performance of such contract as it may deem advisable, the Company will advise
the Issuer, the Purchaser and the Trustee of the steps it intends to take in
connection with any such default. If the Company shall so notify the Issuer and
the Trustee, the Company may, in its own name or in the name of the Issuer,
prosecute any action or proceeding or take any other action involving any such
supplier, contractor, subcontractor or surety which the Company deems reasonably
necessary, and in such event the issuer will cooperate fully with the Company.
Any amounts recovered by way of damages, refunds, adjustments or otherwise in
connection with the foregoing prior to the Completion Date shall be paid into
the Project Fund or, if recovered after the Completion Date and full disposition
of the Project Fund, shall be deposited in the Bond Fund, or in such other
manner as the Issuer shall reasonably determine to be consistent with this
Agreement.

     

    Section
3.9. Investment of Project
Fund.  Any moneys held as a part of the Project Fund or any
other fund created pursuant to the Indenture shall, at the facsimile request of
an Authorized Company Representative, confirmed in writing within two (2)
Business Days, be invested or reinvested by the Trustee as provided in Article
VII of the Indenture.

     

    

     

    ARTICLE
IV.

     

    SECURITY;
LOAN PAYMENTS; OTHER OBLIGATIONS

     

    Section
4.1. Note.  Concurrently
with the sale and delivery by the Issuer of the Bonds, in order to secure the
obligation of the Company hereunder, the Company will execute and deliver the
Note substantially in the form attached hereto as Exhibit C which shall be dated
the same date as the date of delivery of the Bonds.

     

    Section
4.2. Loan Payments.  The
Company hereby covenants and agrees to repay the Loan as and when due on or
before the Business Day next preceding any Interest Payment Date for the Bonds
or any other date that any payment of interest, premium, if any, or principal is
required to be made in respect of the Bonds pursuant to the Indenture, until the
principal of, premium, if any, and interest on the Bonds shall have been fully
paid or provision for the payment thereof shall have been made in accordance
with the Indenture, in immediately available funds, a sum which will enable the
Trustee to pay the amount payable on such date as principal of (whether at
maturity or upon redemption or acceleration or otherwise), premium, if any, and
interest on the Bonds as provided in the Indenture.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    It is
understood and agreed that all Loan payments payable by the Company under this
Section are assigned without recourse or liability by the Issuer to the Trustee
as security for and for the benefit of the Owners of the Bonds (except the
Issuer’s right to receive payments, if any, under Sections 4.10 and 4.11
hereof).  The Company hereby assents to such assignment. The Issuer
hereby directs the Company and the Company hereby agrees to pay to the Trustee
all payments payable by the Company pursuant to this Section.

     

    In the
event the Company shall fail to make or cause to be made any of the payments
required in this Section 4.2, the payment in default shall continue as an
obligation of the Company until the amount in default shall have been fully
paid, and the Company will pay the same with interest thereon until paid at the
rate or rates per annum borne by the Bonds.

     

    The
Company further agrees to pay, when due, to the party to whom such payment is
due, the Administration Expenses and all other amounts due in respect of the
Bonds, including reasonable fees and expenses of the Purchaser and Trustee, and
required under the terms and provisions of this Agreement as same shall have
become due and payable.

     

    In
addition, in the event the Company is obligated to make payments which are
accelerated hereunder upon the occurrence of certain events, all as described in
Article VII hereof, such payments to be made in an amount sufficient (a) to
redeem at the earliest date permitted under the Indenture the Bonds to be
redeemed at the Redemption Price, (b) to pay any interest which will become due
on such Bonds to such redemption date and (c) to pay all Administration Expenses
accrued and to accrue.

     

    Section
4.3. Obligation to Make Payments
Absolute.  It is understood and agreed that all payments by the
Company under this Agreement and the Note shall be absolute and unconditional
and shall not be subject to any defense (other than payment) or any right of
set-off, counterclaim or recoupment arising out of any breach by the Issuer or
the Trustee of any obligation to the Company, whether hereunder or otherwise, or
out of any indebtedness or liability at any time owing to the Company by the
Issuer or the Trustee.

     

    So long
as any Bonds are Outstanding, the Company will pay directly to the Issuer or the
Trustee when due, as the case may be, the amount of Administration Expenses
payable to them respectively not theretofore provided for which have then
accrued and become payable (except as otherwise provided herein), provided,
however, that before any such payment is due and payable, the Issuer or the
Trustee, as the case may be, shall give notice to the Company, at least fifteen
(15) days prior to such Payment Date, of the amount and nature of such
Administration Expenses.

     

    Section
4.4. Sole Possession of Project by the
Company.  The Company will acquire, construct, and equip the
Project and will be entitled to sole and exclusive possession of the Project
subject to the provisions of this Agreement.

     

    Section
4.5. Maintenance of
Project.  The Company will use its commercial reasonable
efforts to maintain, preserve and keep the Project and the Building or cause the
Project and the Building to be maintained, preserved and kept, with the
appurtenances and every part and parcel thereof, in good repair, working order
and condition and will from time to time make or cause to be made all necessary
and proper repairs, replacements and renewals.

     

    Section
4.6. Taxes and Assessments; Tax
Indemnity.  The Company shall:

     

    (a) file all
tax returns and appropriate schedules thereto that are required to be filed
under applicable law, prior to the date of delinquency;

     

    
      
        
        

      

      
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    (b) pay and
discharge all taxes, assessments and governmental charges or levies imposed upon
the Company, upon its income and profits or upon any properties belonging to it,
prior to the date on which penalties attach thereto; and

     

    (c) pay all
taxes, assessments and governmental charges or levies that, if unpaid, might
become a Lien upon any of its properties; provided, however, that the Company in
good faith may contest any such tax, assessment, governmental charge or levy
described in the foregoing clauses (b) and (c) so long as appropriate reserves
are maintained with respect thereto. If any tax is or may be imposed by any
governmental entity in respect of sales of the Company's inventory or the
payment of compensation to the Company's employees, or as a result of any other
transaction of the Company, which tax the Issuer is or may be required to
withhold or pay, the Company agrees to indemnify and hold harmless the Issuer in
connection with such taxes (including penalties and interest), and the Company
shall immediately reimburse the Issuer for any such amounts paid by the
Issuer.

     

    Section
4.7. Operation of
Project.  The Company agrees that so long as any of the Bonds
are Outstanding it will maintain the Project as an eligible company in
accordance with the Act, unless the Project is sold pursuant to Section 6.1
hereof.

     

    Section
4.8. Payment of
Expenses.  The Company will pay, or cause to be paid, in
addition to the payments provided for in Sections 4.2 and 4.3 hereof, all of the
expenses of operation of the Project, including, without limitation, the cost of
all necessary and proper repairs, replacements and renewals made pursuant to
Section 4.5 hereof and any and all taxes and assessments payable pursuant to
Section 4.6 hereof.

     

    Section
4.9. Payments Continue Upon Destruction of
Project.  It is understood and agreed that the payments under
Section 4.2 hereof and on the Note and other charges payable hereunder shall
continue to be payable at the time and in the amounts herein specified, whether
or not the Project, or any portion thereof, shall have been condemned or taken
by eminent domain or destroyed, wholly or partially, by fire or other casualty,
and that there shall be no abatement or diminution of any such payments and
other charges by reason thereof.

     

    Section
4.10. Payment of Initial Administrative
Fee.  Concurrently with the sale and delivery by the Issuer of
the Bonds, the Company shall pay to the Issuer an Initial Administrative Fee in
the amount of $70,000.

     

    Section
4.11. Release and Indemnification of the
Issuer.  The Company hereby releases the Issuer from, and
agrees that the Issuer and its respective officers, directors, members,
employees, attorneys, and agents shall not be liable for, and agrees to defend,
indemnify and hold the Issuer and its respective officers, directors, members,
employees, attorneys, and agents harmless against:

     

    (a) any
liability, cost or expense in the administration of this Agreement and the
obligations imposed on the Issuer thereby and hereby;

     

    (b) any or
all liability or loss, cost or expense, including reasonable attorneys' fees,
resulting from or arising out of any loss or damage to property or any injury to
or death of any person occurring on or about the Project Site or resulting from
any defect in the fixtures, machinery, equipment or other property located on
the Project Site or arising out of, pertaining to, or having any connection with
the Project or the financing thereof (whether or not arising out of acts,
omissions or negligence of the Company);

     

    (c) any or
all liability or loss, cost or expense, including attorneys' fees, arising out
of or in connection with, or pertaining to the issuance, sale or delivery of the
Bonds, including, but not limited to, liabilities arising under the Securities
Act of 1933, the Securities Exchange Act of 1934 or any applicable state
securities laws; and

     

    
      
        
        

      

      
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    (d) any and
all claims, damages, judgments, penalties, costs, and expenses (including
attorneys' fees and court costs now or hereafter arising from the aforesaid
enforcement of this paragraph), in connection with the Project, arising directly
or indirectly from (i) the activities of the Company and its predecessors in
interest, (ii) third parties with whom it has a contractual relationship, or
(iii) the violation of any environmental protection, health, or safety law,
whether any such claims are asserted by any Governmental Authority or any other
Person which indemnity shall survive the termination of this
Agreement.

     

    The
indemnity specified in this Section 4.11 shall not be effective to relieve the
Issuer or its respective officers, directors, members, employees, attorneys and
agents from damages that result from negligence or intentional misconduct on the
part of the Issuer. This indemnification covenant shall survive the termination
of this Agreement with respect to liability arising out of any event or act
occurring prior to such termination.

     

    The
provisions of this Section 4.11 shall also apply in favor of the Trustee, except
to the extent that any liability, loss, cost or expense on the part of the
Trustee results from the Trustee's own intentional misconduct or
negligence.

     

    Section
4.12. Insurance.  The
Company shall maintain insurance with responsible insurance companies on such of
its properties, in such amounts and against such risks as is customarily
maintained by similar business operating in the same vicinity. 

     

    ARTICLE
V.

     

    SPECIAL
COVENANTS

     

    Section
5.1. No Warranty as to Suitability of
Project by the Issuer.  The Issuer makes no warranty, either
express or implied, as to the actual or designed capacity of the Project, as to
the suitability of the Project for the purposes specified in this Agreement, as
to the condition of the Project, or that the Project will be suitable for the
Company's purposes or needs.

     

    Section
5.2. Continuation of Existence of
Company.  The Company covenants
that it will maintain its existence in its present form, will obtain, maintain
and keep in full force and effect all governmental approvals, consents, permits
and licenses as may be necessary for continued use of the Project, will not
dissolve or otherwise dispose of all or substantially all its assets and will
not consolidate with or merge into another Person or permit one or more other
Persons (other than a subsidiary) to consolidate with or merge into it without
first obtaining the prior written consent of the Purchaser and the Issuer. If
written approval of the Purchaser and the Issuer is obtained, upon any
consolidation or merger, or any conveyance or, transfer of the assets of the
Company substantially as an entirety in accordance with this Section 5.2, the
successor formed by such consolidation or into which the Company is merged or to
which such conveyance or transfer is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Agreement
with the same effect as if such successor had been named as the Company
herein.

     

    In the
event of any such conveyance or transfer, the Company as the predecessor person
may be dissolved, wound up and liquidated (if applicable) at any time
thereafter.

     

    If a
consolidation, merger or sale or other transfer is made as permitted by this
Section 5.2, the provisions of this Section 5.2 shall continue in full force and
effect and no further consolidation, merger or sale or other transfer shall be
made except in compliance with the provisions of this Section 5.2 and Section
6.1 hereof.

     

    
      
        
        

      

      
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    Section
5.3. [Reserved].

     

    Section
5.4. Agreement to
Cooperate.  In the event it may be necessary for the proper
performance of this Agreement, or for the exercise of any rights hereunder, on
the part of the Issuer or the Company that any application or applications for
any permit or license or authorization to do or to perform certain things be
made to any governmental or other agency by the Company or the Issuer, or both,
the Company and the Issuer each agree to execute and prosecute upon the request
of the other such application or applications.

     

    Section
5.5. Qualification in
Mississippi.  Subject to Section 5.2 hereof, the Company
warrants that it is and throughout the term of this Agreement will continue to
be duly qualified to do business in the State.

     

    Section
5.6. Affiliated Companies. The Issuer acknowledges
that the Company and the Purchaser are affiliated companies and that both the
Company and the Purchaser have all the requisite limited partnership power and
authority and all necessary authorizations, approvals, consents, orders,
licenses, certificates and permits of and from all governmental or regulatory
bodies or any other person or entity, including any and all licenses, permits
and approvals required under any foreign, federal, state or local law to own,
lease and license its assets and properties and to conduct its
business.  Additionally, the Issuer acknowledges that neither the
Company nor the Purchaser have any reason to believe that (i) any governmental
or regulatory body is considering modifying, limiting, conditioning, suspending,
revoking or not renewing any such authorizations, approvals, consents, orders,
licenses, certificates or permits of the Company or the Purchaser (other than
immaterial modifications, limitations and conditions arising in connection with
licensing) or that (ii)  governmental or regulatory bodies are
investigating the Company or the Purchaser.  In the event that any
such governmental or regulatory body determines or orders that the Company and
the Purchaser may not continue to do business with each other, the Company may
terminate this Agreement with the written consent of the Issuer and provided
that all payments under Section 4.2 of this Agreement are provided for and the
requirements for redemption of the Bonds pursuant to Article VIII of the
Indenture are complied with.

     

    Section
5.7. Maintenance.  The
Company will maintain all of its tangible property used in connection with its
business in good condition and repair and make all necessary replacements
thereof, and preserve and maintain all licenses, trademarks, privileges,
permits, franchises, certificates and the like necessary for the operation of
its business.

     

    Section
5.8. Environmental Law
Compliance.  The conduct of the Company's business operations
do not and will not violate any federal laws, rules or ordinances for
environmental protection, regulations of the Environmental Protection Agency and
any applicable local or state law, rule, regulation or rule of common law and
any judicial interpretation thereof relating primarily to the environment or
hazardous materials and the Company will not use or permit any other party to
use any hazardous materials at any of the Company's places of business or at any
other property owned by the Company except such materials as are incidental to
the Company's normal course of business, maintenance and repairs and which are
handled in compliance with all applicable environmental laws. On or after the
occurrence of (i) the Issuer obtaining a Lien on additional assets of the
Company, or (ii) a default under any of the Loan Documents, the Company agrees
to permit the Issuer, its agents, contractors and employees to enter and inspect
any of the Company's places of business or any other property of the Company at
any reasonable times upon three (3) days prior notice for the purposes of
conducting an environmental investigation and audit (including taking physical
samples) to insure that the Company is complying with this covenant and the
Company shall reimburse the Issuer on demand for the costs of any such
environmental investigation and audit. The Company shall provide the Issuer, its
agents, contractors, employees and representatives with access to and copies of
any and all data and documents relating to or dealing with any hazardous
materials used, generated, manufactured, stored or disposed of by Company's
business operations within five (5) days of the request therefore.

     

    
      
        
        

      

      
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    Section
5.9. [Reserved].

     

    Section
5.10. [Reserved].

     

    Section
5.11. Maintenance of Books and Records;
Inspection.  The Company shall maintain its books, accounts and
records in accordance with the generally accepted accounting principles and
permit the Issuer, the Purchaser or the Trustee, their officers and employees
and any professionals designated by the Issuer, the Purchaser or the Trustee in
writing, at any time during regular business hours, to visit and inspect any of
its properties (including but not limited to the collateral security described
in the Loan Documents), limited partnership books and financial records, and to
discuss its accounts, affairs and finances with any employee, officer, director,
or equityholder of the Company. Unless written notice of another location is
given to the Issuer, the Purchaser or the Trustee, the Company's books and
records will be located at Company's chief executive office set forth
hereinbelow.

     

    Section
5.12. Affirmative
Covenants.  Until full payment and performance of all
obligations of the Company under the Loan Documents, the Company agrees to
comply with the following covenants, unless the Purchaser consents otherwise in
writing (and without limiting any requirement of any other Loan
Document):

     

    (a) [Reserved];

     

    (b) [Reserved];

     

    (c) The
Company shall pay promptly to Purchaser upon demand, reasonable attorney's fees
(including but not limited to the reasonable estimate of the allocated costs and
expenses of in-house legal counsel and legal staff) and all costs and other
expenses paid or incurred by Purchaser in collecting, modifying or compromising
this Agreement or in enforcing or exercising its rights or remedies created by,
connected with or provided for in this Agreement or any of the Loan Documents,
whether or not an arbitration, judicial action or other proceeding is commenced.
If such proceeding is commenced, only the prevailing party shall be entitled to
attorneys' fees and court costs;

     

    (d) The
Company shall promptly, upon demand by Purchaser, take such further action and
execute all such additional documents and instruments in connection with this
Agreement as Purchaser in its reasonable discretion deems necessary, and
promptly supply Purchaser with such other information concerning its affairs as
Purchaser may request from time to time; and

     

    (e) The
Company shall pay or reimburse Purchaser for all costs, expenses and fees
incurred by Purchaser in preparing and documenting this Agreement and the Loan
Documents, and all amendments and modifications thereof, including but not
limited to all filing and recording fees, costs of appraisals, insurance and
attorneys' fees.

     

    Section
5.13. [Reserved].

     

    Section
5.14. County and City Approval of Ad
Valorem Tax Exemptions.  The Company hereby agrees that the
Project shall not be exempt from ad valorem taxation unless and until the
Company seeks to and obtains the approval of the appropriate local taxing
authorities (county and city governing bodies), to grant ad valorem tax
exemptions for each such Project.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    ARTICLE
VI.

     

    ASSIGNMENT,
LEASE AND SALE OF PROJECT

     

    Section
6.1. Disposal of Project and Assets by
Company.  The Company will not sell, lease or otherwise dispose
of or encumber its interest in the Project, except for transactions permitted
pursuant to Section 5.2 hereof and this Section 6.1, without the prior written
consent of the Issuer and the Purchaser, and with written notice to the Trustee.
Upon prior written consent of the Issuer and the Purchaser, this Agreement may
be assigned in whole or in part, and the interest of the Company in the Project
may be sold or leased as a whole or in part by the Company, provided, however,
that such assignee, vendee or lessee shall, in writing, specifically assume the
obligations and affirm in its own capacity the representations, warranties and
covenants made by the Company in this Agreement, subject, however, to the
following conditions:

     

    (a) No sale,
assignment or leasing of the Project (other than pursuant to Section 5.2
hereof), shall relieve the Company from liability for any of its obligations
hereunder, and in the event of any such sale, assignment or leasing the Company
shall continue to remain primarily liable for the payments specified in Section
4.2 and Section 4.3 hereof and for performance and observance of the other
agreements on its part herein provided, unless otherwise approved by the Issuer
and the Purchaser, in writing, in which case such vendee, assignee or lessee
shall assume the obligations of the Company hereunder and shall become liable
for the payments specified in Section 4.2 and Section 4.3 hereof and for
performance and observance of the other agreements of the Company herein
provided as to which the Company shall no longer be liable.

     

    (b) The
Company shall, no later than ten (10) days prior to the effective date thereof,
furnish or cause to be furnished to the Issuer, the Purchaser and the Trustee a
copy of each such proposed sale agreement, assignment and lease, as the case may
be.

     

    (c) The
Company shall, ten (10) days after the delivery thereof, furnish or cause to be
furnished to the Issuer, the Purchaser and the Trustee, a true and complete copy
of each such sale agreement, assignment and lease, as the case may be, and
before the execution thereof furnish the form thereof to the
Issuer.

     

    (d) There
shall be delivered to the Issuer, the Purchaser and the Trustee a Bond Counsel's
Opinion, addressed to the Issuer and the Trustee, to the effect that such sale,
assignment or leasing is not prohibited by the Act.

     

    ARTICLE
VII.

     

    EVENTS
OF DEFAULT AND REMEDIES

     

    Section
7.1. Default.  Any of the
following events shall constitute a "default" or "event of default" under this
Agreement:

     

    (a) the
failure to pay any obligation, liability or indebtedness of the Company (i) to
the Purchaser, or (ii) to the Issuer or the Trustee under any of the Loan
Documents, as and when due (whether upon demand, at maturity or by acceleration)
and such failure to pay is not cured within five (5) days thereof;
or

     

    (b) the
failure to pay or perform any other obligation, liability or indebtedness of the
Company to the Purchaser under the Loan Documents, and such failure to pay a
monetary obligation is not cured within ten (10) days thereof, or the failure to
perform any other obligation is not cured within thirty (30) days following
written notice to the Company by the Purchaser;

     

    (c) any
default by the Company under any Loan Documents, subject to any cure period
applicable

     

    (d) the
filing or commencement of a proceeding by the Company for dissolution or
liquidation, or the Company's voluntary termination or dissolution;

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (e) insolvency
of, business failure of, the appointment of a custodian, trustee, liquidator or
receiver of or for any of the property of, and any assignment for the benefit of
creditors by, or the filing of a petition under bankruptcy, insolvency, debtor's
relief law or for any adjustment of indebtedness, composition or extension by
the company; or

     

    (f) the
commencement of an involuntary case or other proceeding against the Company
under the federal bankruptcy laws, or any other federal or state bankruptcy,
insolvency or other similar law in the United States or seeking the appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestration (or
similar official) of the Company, or seeking the winding-up or liquidation of
its affairs and the continuation of any such case or other proceeding
undismissed and unstayed for a period of ninety (90) consecutive days, or an
order, judgment or decree shall be entered in any proceeding by any court of
competent jurisdiction appointing, without the consent of the Company, a
receiver, trustees or liquidator of the Company  and  any
such order, judgment or decree or appointment shall be final or shall remain in
force undismissed, unstayed or unvacated for a period of ninety (90) days after
entry thereof; or

     

    (g) any
representation or warranty made by the Company in any Loan Documents or
otherwise to the Purchaser was untrue or materially misleading when
made.

     

    Section
7.2. Remedies Upon
Default.  Whenever any Event of Default referred to in Section
7.1 hereof shall have occurred and be continuing, any one or more of the
following remedial steps may be taken; provided that written notice of the
default has been given to the Company by the Issuer, the Purchaser or the
Trustee and the default has not theretofore been cured; and provided further
that no remedial steps shall be taken by the Issuer the effect of which would be
to entitle the Issuer to provide funds necessary for the payment of principal
and interest on Bonds which have not yet matured unless such principal and
interest shall have been declared due and payable in accordance with the
Indenture and such declaration shall not have been rescinded.

     

    In the
event of any default under this Agreement, the Issuer may and upon written
request of the Purchaser shall:

     

    (a) declare
all amounts due under any of the Loan Documents, at the option of the Purchaser,
immediately due and payable, and/or

     

    (b) exercise
all other rights, powers and remedies available under each of the Loan Documents
and well as all rights and remedies available at law or in equity.

     

    Section
7.3. No Remedy
Exclusive.  The failure at any time of the Issuer, Trustee or
Purchaser to exercise any of its options or any other rights hereunder shall not
constitute a waiver thereof, nor shall it be a bar to the exercise of any of its
options or rights at a later date. All rights and remedies of the Issuer shall
be cumulative and may be pursued singly, successively or together, at the option
of the Issuer. The acceptance by the Issuer of any partial payment shall not
constitute a waiver of any default or of any of Issuer's rights under this Note.
No waiver of any of its rights hereunder and no modification or amendment of
this Agreement or the Note shall be deemed to be made by the Issuer unless the
same is in writing, duly signed on behalf of the Purchaser; and each such waiver
shall apply only with respect to the specific instance involved, and shall in no
way impair the rights of the Purchaser or the obligations of the Company to the
Purchaser or the Issuer in any other respect at any such time.

     

    Section
7.4. Payment of Fees and
Expenses.  If the Company shall default under any of the
provisions of this Agreement and the Issuer or the Trustee shall employ
attorneys or incur other expenses for the collection of the Loan payments or for
the enforcement of performance or observance of any obligation or agreement on
­the part of the Company contained in this Agreement, the Company will on
demand therefor pay the reasonable fees and expenses of the Issuer, the
Purchaser or the Trustee and their attorneys as they are incurred including all
reasonable fees of counsel including those incurred for negotiation, trial,
appeals of ruling of any lower tribunals, administrative hearings, bankruptcy
and creditors' reorganization proceedings.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Section
7.5. Effect of
Waiver.  The Trustee, after having first received the prior
written approval of the Purchaser, may waive any Event of Default under this
Agreement. In the event any agreement contained in this Agreement shall be
breached and such breach shall thereafter be waived, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any
other breach hereunder.

     

    ARTICLE
VIII.

     

    PREPAYMENT
OF LOAN

     

    Section
8.1. Obligations to Accelerate Loan
Payments.  In the event the Company makes provision for payment
of all loan payments and any other amounts payable pursuant to the Loan
Documents in accordance with Article VIII of the Indenture, following written
notification thereof to the Issuer, the Purchaser and the Trustee, the total
amount due, under this Agreement and the Note, will be a sum, payable in cash
and/or Government Obligations, sufficient, together with interest earned on such
Government Obligations and other funds held by the Trustee and available for
such purpose, (a) to redeem at the earliest redemption date or dates provided in
the Indenture all Bonds then outstanding under the Indenture at a Redemption
Price equal to the principal amount thereof, (b) to pay in accordance with the
Indenture the interest which will become due on all such Bonds to the date fixed
for redemption, (c) to pay all Administration Expenses accrued and to accrue
through the date fixed for redemption and (d) pay any other fees owed to the
Purchaser and the Trustee. Furthermore, loan payments and amounts due under the
Note shall be accelerated prior to the maturity of the Bonds (or prior to making
provision for payment thereof in accordance with the Indenture) if the Bonds
shall be subject to redemption pursuant to Sections 2.3 or 2.4, as the case may
be, of the Indenture. In such case, the total amount due shall be the sums
required pursuant to Sections 2.3 or 2.4, as the case may be, of the Indenture,
on the dates required by Sections 2.3 or 2.4, as the case may be, of the
Indenture and any amounts owed pursuant to (c) and (d) above.

     

    ARTICLE
IX.

     

    MISCELLANEOUS

     

    Section
9.1. Notices.  All
notices, certificates, requests or other communications hereunder shall be
sufficiently given and shall be deemed given when received by overnight
delivery; or when personally delivered, addressed as follows:

     

    

    If to the
Issuer:                     Mississippi
Business Finance Corporation

    Attention:  William
T. Barry

    735
Riverside Drive, Suite 300

    Jackson,
MS  39201

    

    If to the
Trustee:                  Hancock
Bank

    Attention:
Susan Tsimortos

    1855
Lakeland Drive, Suite Q-230

    Jackson, MS 39216

    Telephone
Number:  601-981-7452

    Facsimile
Number:   601-368-9457

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    If to the
Company:                Gulf
South Pipeline Company, LP

    Attention:
Mr. James Jones

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Phone
713-479-8294

    E-Mail:  James.Jones@bwpmlp.com

    

    If to the
Purchaser:             Boardwalk
Pipelines, LP

    Attention:
Mr. James Jones

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Phone
713-479-8294

    E-Mail:  James.Jones@bwpmlp.com

    

    A
duplicate copy of each notice, certificate, request or other communication given
hereunder to the Issuer, the Company, the Trustee or the Purchaser shall also be
given to the others. The Company, the Issuer, the Trustee or the Purchaser may,
by notice given under Section 9.1, designate any further or different addresses
to which subsequent notices, certificates, requests or other communications
shall be sent.

    

    Section
9.2. Parties
Interested.  This Agreement shall inure to the benefit of the
Issuer and the Company and shall be binding upon the Issuer, the Company and
their respective successors and assigns, subject to the limitation that any
obligation or liability of the Issuer created by or arising out of this
Agreement shall not be a general debt of the Issuer or the State, but shall be
payable by the Issuer solely out of the proceeds derived from this Agreement
(including proceeds under the Note) or from the security interests granted
herein.

     

    No
covenant, stipulation, obligation or agreement contained in this Agreement shall
be deemed or construed to be a covenant, stipulation, obligation or agreement of
any present or future member, agent, employee or official of the Issuer in his
individual capacity, and no present or future member, agent, employee or
official of the Issuer shall be liable personally, for any breach or
non-observance or failure to comply with the above mentioned covenants,
stipulations, obligations, or on the Bonds or be subject to any personal
liability or accountability by reason of the issuance thereof or by reason of
the said covenants, stipulations, obligations or agreements, above mentioned. No
present or future member, agent, employee or official of the Issuer shall incur
any personal liability in acting or proceeding or in not acting or proceeding,
in good faith, reasonably, under the provisions of this Agreement. If in or by
or as a result of the execution of this Agreement or any other document in
connection with this transaction or any other related transaction, the Issuer or
any member, agent, employee or official thereof shall become obligated in excess
of or contrary to the provisions of the statutory authority granted by the Act,
then such excess or contrary obligation shall not be binding on or enforceable
against the Issuer or any present or future member, agent, employee or official
thereof.

     

    Section
9.3. Amendment to
Agreement.  The Issuer shall not amend nor consent to any
amendment to the Indenture or this Agreement or waive any provision of this
Agreement except as specified in Article XIII of the Indenture, which Article
XIII is incorporated herein by this reference as if it were fully set forth
herein.  The Company hereby agrees to be bound by the provisions of
Article XIII of the Indenture.

     

    Section
9.4. Counterparts.  This
Agreement may be executed in any number of counterparts, each of which, when so
executed and delivered, shall be an original; but such Counterparts shall
together constitute but one and the same Agreement.

     

    Section
9.5. Severability of Invalid
Provisions.  If any clause, provision or section of this
Agreement be held illegal or invalid by any court, the invalidity of such
clause, provision or section shall not affect any of the remaining clauses,
provisions or sections hereof, and this Agreement shall be construed and
enforced as if such illegal or invalid clause, provision or section had not been
contained herein, unless the deletion of illegal or invalid clauses would result
in a material change in the obligations of the parties.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Section
9.6. Governing Law.  This
Agreement shall be governed as to validity, construction and performance by the
laws of the State.

     

    Section
9.7. No Oral
Agreement.  This Agreement and the other Loan Documents
represent the final agreement between the parties and may not be contradicted by
evidence of prior, contemporaneous or subsequent oral agreements of the parties.
There are no oral agreements between the parties with respect to the subject
matter of the Loan Documents.

     

    Section
9.8. Term of
Agreement.  This Agreement shall remain in full force and
effect from the date hereof to, including and until midnight (Central time) of
the Final Maturity Date, or until such time as all of the Bonds and the
reasonable fees and expenses of the Issuer and the Trustee and all obligations
of the Company have been fulfilled in accordance with the terms hereof,
whichever is earlier; provided, however, that this Agreement may be terminated
prior to such date pursuant to Article VIII of this Agreement.

     

    

    

    [Signature pages to
follow.]

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

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

     

    

    MISSISSIPPI
BUSINESS FINANCE

    CORPORATION

    

    
                                                                                              
__________________________

    William
T. Barry, Executive Director

    

    ATTEST:

    
__________________

    Cindy
Carter, Secretary

    

    GULF
SOUTH PIPELINE COMPANY, LP

    By:
GS Pipeline Company, LLC

    Its:
General Partner

    

    

    ________________________________________________

    Jamie
Buskill, Senior Vice President, Chief Financial Officer and
Treasurer

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
A

    TO

    LOAN
AGREEMENT DATED AS OF DECEMBER 1, 2008

    BY
AND BETWEEN

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    AND

    GULF
SOUTH PIPELINE COMPANY, LP

     

    BUILDING
DESCRIPTIONS

    AND
IMPROVEMENTS

    

    The
Project shall consist of the construction of a natural gas pipeline through
Warren, Hinds, Copiah, Simpson, Clarke, Jasper and Smith Counties in
Mississippi, the construction of compressor stations, and other commercial
developments permitted under the Act, the guidelines, rules and regulations of
the Issuer related thereto.

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    PROJECT
SITE

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
C

    TO

    LOAN
AGREEMENT DATED AS OF DECEMBER 1, 2008

    BY
AND BETWEEN

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    AND

    GULF
SOUTH PIPELINE COMPANY, LP

     

    PROMISSORY
NOTE

    

    Date:    December
5, 2008                                                                     $175,000,000
Maximum Principal Amount

    

    FOR VALUE RECEIVED, Gulf South
Pipeline Company, LP, a limited partnership organized and existing under and
pursuant to the laws of the State of Delaware and in good standing in and
qualified to do business in the State of Mississippi (the "Company"), hereby
promises to pay to the order of Mississippi Business Finance Corporation (the
"Issuer") or its assigns, the maximum principal amount of $175,000,000 together
with interest on the unpaid principal balance thereof at the rates set forth in
the hereinafter defined Loan Agreement and Indenture until fully and finally
paid, and all other amounts payable by the Company under the Loan Agreement (as
hereinafter defined). This Note shall bear interest at the prevailing rate of
interest on the Bonds (as hereinafter defined) except as otherwise provided
hereunder.  The final maturity date of the Note shall be the final
maturity date of the Bonds (as hereinafter defined) which is December 1,
2018.

    

    This Note
has been executed under and pursuant to a Loan Agreement dated as of December 1,
2008 between the Issuer and the Company (the "Loan Agreement") and will be
issued and secured by a Loan Agreement which is incorporated herein in its
entirety by reference. This Note is issued to evidence the obligation of the
Company under the Loan Agreement to repay the loan made by the Issuer from the
proceeds of the Mississippi Business Finance Corporation Taxable Industrial
Development Revenue Bonds (Gulf South Pipeline Company, LP Project) (the "
Bonds"), to be issued under the Trust Indenture dated as of December 1, 2008
(the “Indenture”) between the Issuer and Hancock Bank, as Trustee (the
“Trustee”), together with interest thereon at the interest rates as set forth in
the Loan Agreement, the Indenture and the Bonds, and all other payments of any
kind required to be paid by the Company under the Loan Agreement. The Loan
Agreement includes provisions for prepayment and acceleration of this Note. In
the event that the terms of this Note conflict with the terms of the Loan
Agreement, the Indenture and the Bonds, the terms of the Loan Agreement, the
Indenture and the Bonds shall control. The proceeds of the Loan will be advanced
from time to time by the Purchaser (as defined in the Loan Agreement) of the
Bonds and the Trustee and the Purchaser have each agreed to make a suitable
notation on the Grids attached to the Note and the Bonds, of the date and amount
of each such advance, all as provided in the Bond Purchase Agreement (as defined
in the Loan Agreement) and the Indenture. Each advance on the Note shall
constitute an equal and corresponding advance on the Bonds.

    

    As
provided in the Loan Agreement and subject to the provisions thereof, payments
hereon are to be made at the principal office of the Trustee as shown in the
Loan Agreement in an amount which together with other monies available therefor
pursuant to the Loan Agreement, will equal the amount payable as principal of,
premium, if any, and interest on the Bonds Outstanding (as defined in the Loan
Agreement) on such due date. Each payment of principal and interest on this Note
shall constitute an equal and corresponding payment under the Loan Agreement,
the Indenture and the Bonds as applied in accordance with the
Indenture.

    

    The
Company shall make principal payments on this Note in the amounts on the dates
and at the rates of interest, unless paid prior thereto through redemption, all
as set forth in the Loan Agreement (by reference to the Indenture) and in
addition shall make such other payments as are required pursuant to the Loan
Agreement. Upon the occurrence of an Event of Default, as defined in the Loan
Agreement, the principal of, premium, if any, and interest on this Note may be
declared immediately due and payable as provided in the Loan Agreement. Upon any
such declaration the Company shall pay all costs, disbursements, expenses and
reasonable counsel fees of the Issuer and the Trustee in seeking to enforce
their rights under the Loan Agreement and this Note.

    

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    The
Company (a) waives diligence, demand, presentment for payment, notice of
nonpayment, protest and notice of protest, notice of any renewals or extension
of this Note, and (b) agrees that the time for payment of this Note may be
extended at the sole discretion of the Issuer without impairing the Company's
liability hereon.  Any delay on the part of the Issuer in exercising
any right hereunder shall not operate as a waiver of any such right, and any
waiver granted with respect to one default shall not operate as a waiver in the
event of any subsequent or continuing default.

    

    This Note
shall be governed and construed in accordance with the laws of the State of
Mississippi.

    

    IN WITNESS WHEREOF, the
undersigned has caused this Note to be executed in its name as of the day and
year first above written.

    

    

    GULF
SOUTH PIPELINE COMPANY, LP

    By:
GS Pipeline Company, LLC

    Its:
General Partner

    

    

    By:  ____________________________________                                                              

    _____________,
_______________

    

    ATTEST:

    

    By:  ___________________________                                                    

    __________________

    

    

    

    

    

    
      
        
           

        

         

      

      
        D-2

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
OF PROMISSORY NOTE

    

    FOR VALUE RECEIVED, the
Mississippi Business Finance Corporation hereby assigns and transfers, without
recourse, to Hancock Bank, as Trustee, the Promissory Note executed by Gulf
South Pipeline Company, LP, in favor of Mississippi Business Finance Corporation
in the maximum principal amount of $175,000,000 on this the 5th day of
December, 2008.

     

    

    MISSISSIPPI
BUSINESS FINANCE

    CORPORATION

    

    

    By: _____________________________________                                                                          

    William
T. Barry, Executive Director

    

    ATTEST:

    

     __________________                                                                

    Cindy
Carter, Secretary

    
      
        
           

        

         

      

      
        D-3

        
          

        

      

      
         

      

    

     

    EXHIBIT
D

    TO

    LOAN
AGREEMENT DATED AS OF DECEMBER 1, 2008

    BY
AND BETWEEN

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    AND

    GULF
SOUTH PIPELINE COMPANY, LP

    
 

     

    BOND
ADVANCE AND PAYMENT GRID

     

    
 

    SCHEDULE
OF PRINCIPAL ADVANCES AND

    REPAYMENTS
OF PRINCIPAL AND INTEREST

    SERIES
2008

    

    

    

    

           
Amount
of                                                                                                                                    
 Unpaid

            
Principal                              
 Amount
of                                Amount
of                                 Principal                            
Notation

    Date                               
Advanced                         
Principal
Repaid                         Interest
Paid                                Balance                           
Made
By

    

    
      __________              ___________                      ____________                       _____________                      
___________                                 

       

      __________              ___________                      ____________                        _____________                      ___________                

      

      __________              ___________                      ____________                        _____________                      ___________                 

      

      __________              ___________                      ____________                        _____________                      ___________                                 

      

      __________               ___________                     ____________                         _____________                     ___________                                

      

      __________               ___________                     ____________                         _____________                     ____________              

       

      __________               ___________                    
____________                         _____________                     ____________                            

      

      __________                ___________                     ____________                         _____________                    ____________                            
 

      __________                ___________                     ____________                         _____________                     ____________                           

      

      __________                ___________                     ____________                         _____________               
    ____________                         

      
 

      
        __________              ___________                      ____________                       
_____________                      
____________                

         

        __________              ___________                      ____________                        _____________                      ____________                                 

        

        __________              ___________                      ____________                        _____________                      ____________                  

         

        __________              ___________                      ____________                        _____________                      ____________                                

        

        __________               ___________                     ____________                         _____________                     ____________                                

        

        __________               ___________                     ____________                         _____________                     ____________                            

         

        __________               ___________                    
____________                         _____________                     ____________              

        

        __________                ___________                     ____________                         _____________                    ____________                            
 

        __________                ___________                     ____________                         _____________                    _____________                          

        

        __________                ___________                     ____________                         ______________                  _____________                           

        

 

      

    

    

    (Continued
on Next Page)

    

    

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    
      

             
Amount
of                                                                                                                                    
 Unpaid

              
Principal                              
 Amount
of                                Amount
of                                 Principal                            
Notation

      Date                               
Advanced                         
Principal
Repaid                         Interest
Paid                                Balance                           
Made
By

    

    

    
      __________              ___________                      ____________                       _____________                      
___________                

       

      __________              ___________                      ____________                        _____________                      ___________               

      

      __________              ___________                      ____________                        _____________                      ___________                                

      

      __________              ___________                      ____________                        _____________                      ___________                                 

      

      __________               ___________                     ____________                         _____________                     ___________                               

      

      __________               ___________                     ____________                         _____________                     ____________                            

       

      __________               ___________                    
____________                         _____________                     ____________                           

      

      __________                ___________                     ____________                        _____________                    ____________                             
 

      __________                ___________                     ____________                        _____________                     ____________                         

      

      __________                ___________                     ____________                        _____________ 
                  ____________            

      

      
        __________              ___________                      ____________                         _____________                    
____________                               

         

        __________              ___________                      ____________                        _____________                      ____________                                

         

        __________              ___________                      ____________                        _____________                      ____________                 

        

        __________              ___________                      ____________                        _____________                      ____________               

        

        __________               ___________                     ____________                         _____________                     ____________               

        

        __________               ___________                     ____________                         _____________                     ____________                           

         

        __________               ___________                    
____________                         _____________                     ____________              

        

        __________                ___________                     ____________                         _____________                    ____________                            
 

        __________                ___________                     ____________                         _____________                     ____________                          

        

        __________                ___________                     ____________                         ______________                   ____________             

        

      

      

 

      
 

      
 

      
 

      
        
           

        

        
          E-2

          
            

          

        

        
           

        

      

 

    
  

 

    
 

    EXHIBIT
D

    TO

    LOAN
AGREEMENT DATED AS OF DECEMBER 1, 2008

    BY
AND BETWEEN

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    AND

    GULF
SOUTH PIPELINE COMPANY, LP

    

    FORM OF REQUISITION
CERTIFICATE

    

    TO:                                        
HANCOCK BANK, AS TRUSTEE

    

    
      	
              FROM:

            	
              GULF
      SOUTH PIPELINE COMPANY, LP (THE
“COMPANY”)

            

    

    

    
      	
              SUBJECT:

            	
              LOAN
      AGREEMENT, DATED THE FIRST DAY OF DECEMBER, 2008 (THE “LOAN
      AGREEMENT”)

            

    

     

    
      	
               
      

            	
              This
      represents Requisition Certificate No. _____ in the total amount of
      $__________ for payment of those costs of the Project detailed in the
      schedule attached.

            

    

     

           The undersigned does
certify that:

     

    1.           All
of the expenditures for which moneys are requested hereby represent proper Costs
of the Project, is a proper charge against the Project Fund, have not been
included in a previous Requisition Certificate and have been properly recorded
on the Company’s books.

     

    2.           The
moneys requested hereby are not greater than those necessary to meet obligations
due and payable or to reimburse the Company for funds actually advanced for
costs of the Project. The moneys requested do not include retention or other
moneys not yet due or earned under construction contracts.

     

    3.           The
Company is not in default under Section 7.1 of the Loan Agreement and nothing
has occurred to the knowledge of the Company that would prevent the performance
of its obligations under the Loan Agreement.

     

    4.           Delivered
herewith to the Purchaser are all of the documents required by Section 3.4
of the Loan Agreement.

     

    5.           Capitalized
terms used and not defined herein shall have the meanings ascribed to them in
the Loan Agreement.

     

    
      
        
           

        

         

      

      
        E-3

        
          

        

      

      
         

      

    

    Executed
this ____ day of ________, _______.

     

    

    GULF
SOUTH PIPELINE COMPANY,LP

    

    

    By: ____________________________                                                               

          Authorized
Officer

    

    

    Approved
on ____ day of ________, ________.

    

    BOARDWALK
PIPELINES, LP

    

    

    By: ____________________________                                                               

    Authorized Officer

    

    

    

    

    SCHEDULE
A TO REQUISITION CERTIFICATE NO ______

    

    

    
      	
              PAYEE AND ADDRESS

            	
              AMOUNT

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
               

              TOTAL

            	 
      

    

    

    

    

    

    

    
      	 
      

    

    
      

    

    
      	 
      

    

    

    
      
        
           

        

         

      

      
        E-4exhibit10_1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.1

    Execution
Copy

    

    NOT
TO EXCEED $175,000,000

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

    TAXABLE
INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 2008

     

    (GULF
SOUTH PIPELINE COMPANY, LP PROJECT)

    

    

    BOND
PURCHASE AGREEMENT

     

    Among

     

    BOARDWALK
PIPELINES, LP

    

    

    

    MISSISSIPPI
BUSINESS FINANCE CORPORATION

     

    And

     

    GULF
SOUTH PIPELINE COMPANY, LP

    

    

    

    

    

     

    Dated
as of December 1, 2008

    
      
         

      

      
         

        
          

        

      

      
         

        
          
 

        

      

    

    TABLE OF CONTENTS

    

    1.  BACKGROUND                                                                                                                                               
1

    2.  JOINT
REPRESENTATION OF THE ISSUER AND THE
COMPANY                                                    2

    3.  REPRESENTATIONS
OF THE
ISSUER                                                                                                       
2

    4.  REPRESENTATIONS
OF THE
COMPANY                                                                                                
3

    5.  COVENANTS
OF THE
COMPANY                                                                                                              5

    6.  PURCHASE,
SALE AND DELIVERY OF THE
BONDS                                                                            
6

    7.  DOCUMENTS                                                                                                                                                 
8

    8.  CONDITIONS
TO OBLIGATIONS OF THE
PURCHASER                                                                      
8

    9.  TERMINATION                                                                                                                                            
11

    10.  EXPENSES                                                                                                                                                   
11

    11.  CONDITION
OF THE ISSUER'S
OBLIGATIONS                                                                                  
11

    12.  NOTICES                                                                                                                                                      
11

    13.  SUCCESSORS                                                                                                                                              
12

    14.  SURVIVAL
OF CERTAIN REPRESENTATIONS AND
WARRANTIES                                            12

    15.  GOVERNING
LAW                                                                                                                                      12

    16.  MISCELLANEOUS                                                                                                                                      12

    17.  COUNTERPARTS                                                                                                                                       
12

    18.  EFFECTIVE
DATE                                                                                                                                      
12

    19.  DEFINED
TERMS                                                                                                                                       
12

    

    

    EXHIBIT
A:    Notice of Borrowing

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

     

    Dated as
of December 1, 2008

    

    

    

    

    Mississippi
Business Finance Corporation

    Jackson,
Mississippi

    

    Gulf
South Pipeline Company, LP

    Houston,
Texas

    

    Ladies
and Gentlemen:

    

    Boardwalk
Pipelines, LP, a Delaware limited partnership (the "Purchaser"), offers to enter
into this Bond Purchase Agreement (this "Agreement") with the Mississippi
Business Finance Corporation, a public corporation organized and existing under
the laws of the State of Mississippi (the "State") (the "Issuer") and Gulf South
Pipeline Company, LP, a limited partnership organized, validly existing under
the laws of the State of Delaware, and in good standing under the laws of the
State of Mississippi (the "Company"), which, upon your acceptance will be
binding upon the Issuer, the Company and the Purchaser.

    

    1. BACKGROUND

     

    (a) The
Issuer will issue and sell its Taxable Industrial Development Revenue Bonds,
(Gulf South Pipeline Company, LP Project) (the "Bonds") in the maximum aggregate
principal amount of $175,000,000 to provide for the permanent financing for a
portion of the cost of the Project (as defined in the Loan Agreement, as
hereinafter defined) to be located in the State and to be owned by the Company,
and to pay the necessary expenses incidental to the issuance of the
Bonds.  The Bonds may be designated upon written notice by the Company
in an aggregate amount not exceeding $175,000,000, so as to fund the
Project.  The principal proceeds of the Bonds will be advanced from
time to time as described in the Indenture (as hereinafter
defined).  The Issuer and the Company will enter into a Loan Agreement
(the "Loan Agreement") dated as of December 1, 2008,  providing, among
other things, for payments at times and in amounts sufficient to pay when due
the principal of, premium, if any, and interest on the Bonds.

     

    (b) The Bonds
will be Issued pursuant to Title 57, Chapter 10, Article 7 of the Mississippi
Code of 1972, as amended and supplemented (the "Act"), resolutions of the Issuer
dated June 14, 2006, April 11, 2007 and July 9, 2008 (collectively the
"Resolution"), and a trust indenture (the "Indenture") dated as of December 1,
2008, between the Issuer and Hancock Bank, as Trustee, (the "Trustee"). The
Bonds are limited obligations of the Issuer, payable solely from payments to be
made by the Company pursuant to the Loan Agreement and payments to be made by
the Company pursuant to a promissory note to the Issuer (the
"Note").  Payment of the Bonds is secured by the lien of the Indenture
on the trust estate created thereunder which consists generally of money
deposited in the funds and accounts established under the Indenture and income
from the investment of such money as required by the Indenture, the Loan
Agreement and the Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) The Bonds
will contain the terms and provisions as described in the Indenture and will
bear interest at the rates described in the Indenture.

     

    (d) The terms
and provisions of the Bonds have been approved by the Company which enters into
this Agreement in order to induce the Purchaser to purchase the Bonds and
advances thereupon at the price set forth in the Indenture.

     

    (e) No
preliminary official statement, final official statement or other disclosure
document will be distributed in connection with the Issuance and sale of the
Bonds.

     

    (f) It is
intended that interest on the Bonds will not be tax-exempt interest for purposes
of Section 103 of the Internal Revenue Code.

     

    (g) The
Purchaser is purchasing the Bonds for its own account and will, on the Closing
Date (as hereinafter defined), execute a document satisfactory to the Issuer
agreeing not to sell or otherwise transfer or dispose of the Bonds without
complying with applicable disclosure and registration requirements of federal
and state securities laws.  The Purchaser will cause the Company to
execute a certificate agreeing to the restrictions imposed by the securities
laws and providing the necessary affirmations requested by the
Issuer.

     

    (h) This
Agreement, together with the Loan Agreement, the Note, the Indenture and the
Bond shall hereinafter sometimes be referred to as the Loan
Documents.

     

    2. JOINT REPRESENTATION OF THE ISSUER
AND THE COMPANY.  The Issuer and the Company represent that the
Company is an "eligible business" within the meaning of the Act.

     

    3. REPRESENTATIONS OF THE
ISSUER.  The Issuer makes the following representations, all of
which will survive the purchase and offering of the Bonds.

     

    (a) The
Issuer is a public corporation organized and existing under the laws of the
State.

     

    (b) The
Issuer is authorized by the provisions of the Act to issue the Bonds, to loan
the proceeds of the Bonds to the Company pursuant to the Loan Agreement to be
used for the permanent financing of the Project, to pledge and assign the Loan
Agreement and the Note, and the payments to be received by the Issuer pursuant
thereto and the funds established pursuant to the Indenture and investment
earnings and amounts therein as security for the payment of the principal of,
premium, if any, and interest on the Bonds and to assign its interest in the
Loan Agreement and the Note to the Trustee, all pursuant to the
Indenture.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c) The
Issuer has complied with all provisions of the Constitution and the laws of the
State pertaining to the issuance and sale of the Bonds, including the Act, and
has full power and authority to authorize and thereafter consummate all
transactions contemplated by the Loan Documents and any and all other agreements
relating thereto.

     

    (d) The
Issuer has duly adopted the Resolution and has duly authorized the execution and
delivery of the Loan Documents and the issuance and sale of the Bonds, and taken
all actions and obtained all approvals necessary and appropriate to carry out
the same.

     

    (e) The
Issuer has duly authorized all necessary actions to be taken by the Issuer (i)
for the issuance and sale of the Bonds upon the terms set forth herein and in
the Indenture, (ii) for the execution, delivery, receipt and due performance of
the Loan Documents, any and all other agreements and documents as may be
required to be executed, delivered and received by the Issuer in order to carry
out, give effect to and consummate the transactions contemplated hereby and by
the issuance and sale of the Bonds, and (iii) for the carrying out, giving
effect to, and consummation of the transactions contemplated hereby, by the
Indenture and by the issuance and sale of the Bonds. Executed counterparts of
the Loan Documents will be delivered to the Purchaser by the Issuer on the
Closing Date (as hereinafter defined).

     

    (f) To the
best of the Issuer's knowledge, there is no action, suit, proceeding, inquiry,
investigation at law or in equity or before or by any court, public board or
body pending or threatened against or affecting the Issuer (or any basis
therefor) wherein an unfavorable decision, ruling or finding would adversely
affect the transactions contemplated hereby or the issuance and sale of the
Bonds or the validity of the Bonds, the Loan Documents or any agreement or
instrument to which the Issuer is or is expected to be a party and which is used
or contemplated for use in the consummation of the transactions contemplated
hereby.

     

    (g) Neither
the execution and delivery by the Issuer of the Loan Documents and other
agreements contemplated hereby nor the Issuance and sale of the Bonds and
compliance with the provisions thereof will conflict with or constitute, on the
part of the Issuer, a breach of or a default under any existing law, court or
administrative regulation, decree or order or any agreement, indenture,
mortgage, lease or other instrument to which the Issuer is subject or by which
the Issuer is or may be bound.

     

    (h) Any
certificate signed by any of the Issuer's authorized officers and delivered to
the Purchaser shall be deemed a representation and warranty by the Issuer to the
Purchaser as to the statements made therein.

     

    (i) When an
advance in respect of the Bonds is paid for by the Purchaser at the direction of
the Company in accordance with the terms of this Agreement, the Bonds, including
each such advance, will have been duly authorized, executed and issued and will
constitute legal, valid and binding limited obligations of the Issuer
enforceable in accordance with their terms and entitled to the benefits of the
Indenture.

     

    4. REPRESENTATIONS OF THE
COMPANY.   The Company makes the following
representations, all of which will survive the purchase and offering of the
Bonds:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (a) The
Company is a limited partnership duly formed and validly existing under the laws
of the State of Delaware, is in good standing in and is duly authorized to
conduct business in the State of Mississippi.

     

    (b) The
Company has full limited partnership power and authority to authorize and
thereafter consummate all transactions contemplated by this Agreement, the Loan
Documents and any and all other agreements relating thereto.

     

    (c) The
Company’s general partner has duly authorized all necessary actions to be taken
by the Company (i) for the execution, delivery, receipt and due performance of
the Loan Documents, (ii) for the consummation of the transactions contemplated
by the sale of the Bonds, the Loan Documents, and (iii) for the Loan Documents
to constitute valid and binding obligations of the Company enforceable in
accordance with their respective terms, as each may apply to the Company except
to the extent that the enforceability thereof may be limited (A) by bankruptcy,
reorganization or similar laws limiting the enforceability of creditors' rights
generally or (B) by the availability of any discretionary equitable
remedies.

     

    (d) The
execution and delivery by the Company of the Loan Documents and the other
documents contemplated hereby and by the issuance and sale of the Bonds and
compliance with the provisions thereof will not conflict with or constitute on
the Company's part a breach of or default under any existing law, court or
administrative regulation, decree or order or any agreement, indenture,
mortgage, lease or other instrument to which the Company is subject or by which
the Company is or may he bound.

     

    (e) Any
certificate signed by any of the Company's general partner’s authorized officers
and delivered to the Purchaser shall be deemed a representation and warranty by
the Company to the Purchaser as to the statements made therein.

     

    (f) The
Company has obtained or will obtain as and when required by applicable law all
approvals required in connection with the execution and delivery of and
performance by the Company of its obligations under the Loan
Documents.

     

    (g) To the
Company's knowledge, there is no action, suit, proceeding, inquiry or
investigation at law or in equity pending before or by any court, public board
or body to which  the Company is a party that would materially
adversely affect the transactions contemplated by, or the validity or
enforceability of the Loan Documents, or wherein an unfavorable decision, ruling
or finding would adversely affect the transactions contemplated hereby or the
issuance and sale of the Bonds or the validity of the Bonds, the Loan Documents
or any agreement or instrument to which the Company is or is expected to be a
party and which is used or contemplated for use in the consummation of the
transactions contemplated hereby.

     

    (h) The
Company will have obtained all licenses, permits, franchises or other
governmental authorizations necessary for the acquisition, construction,
installation, equipping and permanent financing, from time to time, of any
subproject included under the definition of Project under the Indenture and the
use of any subproject included under the definition of Project.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5. COVENANTS OF THE
COMPANY.  The Company covenants and agrees to the following
covenants, all of which will survive the purchase and offering of the Bonds and
any investigations made by or on behalf of the Purchaser:

     

    (a) The
Company agrees to indemnify and hold harmless the Issuer, its counsel, Bond
Counsel, the Purchaser, the Trustee, any officer, agent or employee of the
Issuer and each person, if any, who controls any of the foregoing within the
meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20
of the Securities Exchange Act of 1934, as amended (collectively referred to
herein as the "Indemnified Parties"), against any and all losses, claims,
damages, liabilities or expenses whatsoever arising out of or resulting from or
in any way related to the issuance and sale of the Bonds, any breach by the
Company of any of, or the inaccuracy of any of, its representations, warranties
and covenants set forth in this Agreement and the permanent financing of the
Project and the acquisition, installation, equipping and the use of the Project;
provided, however, that the Company shall not indemnify and hold harmless any
Indemnified Party from damages that result from gross negligence or intentional
misconduct on the part of the Indemnified Party seeking such
indemnity.

     

    In case
any action shall be brought against one or more of the Indemnified Parties based
upon the information described in the preceding paragraph and in respect of
which indemnity may be sought against the Company, the Indemnified Parties shall
promptly notify the Company in writing and the Company shall promptly assume the
defense thereof, including the employment of counsel reasonably acceptable to
the Indemnified Parties, the payment of all expenses, and the right to negotiate
and consent to settlement. Any one or more of the Indemnified Parties has the
right, at its own expense, to employ separate counsel in any such action and to
participate in the defense thereof. The Company shall not be liable for any
settlement of any such action effected without its consent, but if settled with
the consent of the Company, or if there be a final judgment for the plaintiff in
any such action with or without its consent, the Company agrees to indemnify and
hold harmless the Indemnified Parties from and against any loss or liability by
reason of such settlement or judgment.

     

    (b) The
Company will not take or omit to take, as may be applicable, any action which
would, in any way, cause the proceeds of the Bonds to be applied in a manner
contrary to the requirements of the Indenture and the Loan
Agreement.

     

    (c) Whether
or not the sale of the Bonds by the Issuer to the Purchaser is consummated, the
Company agrees that the Purchaser shall have no obligation to pay any costs or
expenses incident to the performance of the obligations of the Issuer or the
Purchaser under this Agreement.  All costs and expenses to effect the
preparation, issuance, sale and delivery of the Bonds and the Loan Documents and
the fees and expenses of the Issuer, its Agents, and of Bond Counsel, and of the
Purchaser and its Counsel, shall be paid by the Company.

     

    (d) Company
will use the proceeds of the Loan for the acquisition, construction,
installation, and expansion of facilities on the Project Site, including the
equipping of the Project, including any reimbursement of prior expenditures on
the Project.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (e) Company
will not make any amendment or change of its certificate of limited partnership
or agreement of limited partnership that will constitute a material adverse
affect on this Agreement, the Loan Agreement, or any other Loan
Documents.

     

    6. PURCHASE,
SALE AND DELIVERY OF THE BONDS

     

    (a) On the
basis of the representations, warranties and covenants contained herein, and in
the Loan Documents and other agreements referred to herein, and subject to the
terms and conditions herein and therein set forth, on the Closing Date the
Purchaser agrees to purchase from the Issuer and the Issuer agrees to sell to
the Purchaser the “Mississippi Business Finance Corporation Taxable Industrial
Development Revenue Bonds Series 2008 (Gulf South Pipeline Company, LP Project)”
in an agreed upon principal amount for a purchase price of one hundred percent
(100%) of the principal amount of the Series 2008 Bonds so issued and sold from
time to time as provided for hereunder and in the Indenture.  The
Issuer understands that the Purchaser is purchasing the Bonds for its own
account and will provide an investment letter or certificate to that
effect.  The Purchaser will not sell the bonds to any other
prospective bond purchaser without obtaining the prior written consent of the
Issuer.

     

    (b) The
Issuer will deliver the Series 2008 Bonds to or for the account of the Purchaser
against payment of the purchase price therefor on the Closing Date and
thereafter (in the case of multiple advances) on a date or dates acceptable to
the Issuer, the Purchaser and the Company in the principal amount designated by
the Company as herein provided.  The Bonds will be dated the date of
issuance and delivery thereof, will be delivered in the form of one (1)
fully registered Bond so designated by the Company and in denominations so that
the aggregate amount does not to exceed $175,000,000 (as hereinafter more fully
described), and will be registered in the name of the Purchaser.  The
Bonds may be in printed, engraved, typewritten or photocopied form and each such
form shall constitute "Definitive Form."

     

    (c) Purchaser
will purchase Bonds in a principal amount equal to the principal amount of the
Bonds as provided for under the Indenture, but not in an aggregate amount which
will exceed $175,000,000 of Bonds issued under the Indenture.  The
proceeds of such purchases shall be loaned to the Company by the Issuer to
finance the Project, as such term is defined in the Indenture.

     

    (d) The Bonds
shall be dated the date of delivery thereof and the Bonds shall bear an interest
rate equal to seven percent (7%) per annum.

     

    (e) Interest
accrued on the Bonds shall be paid on each Interest Payment Date, as defined in
the Indenture.  The outstanding principal shall be due and payable on
the final maturity date of the Bonds.  All Bonds shall mature no later
than December 1, 2018.  Bonds may be prepaid in whole or in part
without penalty, upon written notice to the Trustee, the Issuer, and the
Purchaser as provided in Section 2.4 of the Indenture.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    The sale and purchase of the Bonds will
be accomplished in two or more advances as described hereinafter and in Section
2.7 of the Indenture.  The parties agree that (i) the aggregate
principal amount of Bonds to be sold and purchased hereunder shall not exceed
the principal amount specified in Paragraph 6(b) hereof, and (ii) the Bonds will
be deemed delivered to the Purchaser by notice of an advance or advances
thereupon as herein provided.  Advances shall be made upon the fully
registered Bonds that are issued and delivered under the Indenture and shall
constitute an advance of moneys by the Issuer, upon payment therefor by the
Purchaser.  Such advances shall be noted on the Bond by the Purchaser
and on the Note by the Trustee, there being required no additional delivery of a
new Bond or Bonds in definitive form.  It shall be the sole
prerogative of the Company to designate the principal amount of each advance to
be delivered at any subsequent time and the date, time and place of the delivery
of and payment for such advance (hereinafter referred to as a
"Closing").  The aforesaid notice of borrowing to be made by the
Company after the Closing Date shall be substantially in the form of that which
is attached hereto as Exhibit "A" and shall be duly executed on behalf of
the Company (the “Notice of Borrowing”).  Within five (5) days from
which such Notice of Borrowing is submitted, the Purchaser shall fund such
request.  As is set forth in Section 2.7 of the Indenture, any such
Notice of Borrowing which the Trustee receives from the Company shall be treated
as an order from the Issuer to authorize the advance under the Bond initially
issued and delivered and as irrevocable, unless the Trustee, the Issuer and the
Purchaser shall consent in writing to any revocation thereof.  No
further action shall be required by the Issuer in order to authorize any such
advance.  Subject to the terms and conditions of the Indenture, the
Issuer and the Trustee hereby authorize and direct the Purchaser to note as an
advance on the grid provided therefor on the Bond, the amount constituting the
advance requested by the Company at any such Closing along with all payments of
principal and interest on the Bond; and the Purchaser shall make such notation
and pay the purchase price of such  Bond pursuant to Section 2.2 of
the Indenture.  Upon receipt of such payment, the Trustee has agreed
in the Indenture to note as an advance on the grid provided therefor on the
Note, the amount constituting the advance along with all payments of principal
and interest on the Bond.

     

    The
outstanding principal amount of the Bonds shall at all times be determined by
the records maintained by the Trustee and the Purchaser.

     

    The
obligation of the Issuer to cause advances upon the Bonds, and the obligation of
the Purchaser to purchase the Bonds under the provisions of this Agreement shall
terminate on that date which follows the Completion Date (as defined in the Loan
Agreement) of the Project, and after said termination date the Issuer shall have
no obligation to cause advances upon the Bonds and the Purchaser shall have no
obligation to purchase the Bonds.

     

    All Bonds
(including advances thereupon) issued by the Issuer are to be sold to the
Purchaser under and pursuant to this Agreement and shall not be sold to any
other purchaser or pursuant to any other agreement without an agreement in
writing signed by the Issuer, the Trustee, the Purchaser and such other
purchaser.

     

    (f) The
Purchaser agrees that it is purchasing the Bonds for its own investment account
and not with a view towards any resale or public distribution
thereof.

     

    (g) The Bonds
shall bear interest at the rates, mature on the date or dates, be subject to
optional and mandatory redemption prior to maturity, and have such other terms
as described in the Indenture.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7. DOCUMENTS.  On or
prior to the Closing Date, the Company and the Purchaser shall have received a
copy of each of the following documents duly executed by all parties thereto as
certified to the satisfaction of the Purchaser:

     

    (a) the
Resolution;

     

    (b) the
Indenture;

     

    (c) the Loan
Agreement;

     

    (d) the Note;
and

     

    (e) the
Assignment of the Note.

     

    The
Issuer and the Company shall immediately upon their execution provide the
Purchaser with any amendments to the aforementioned documents.

    

    8. CONDITIONS TO OBLIGATIONS OF THE
PURCHASER.  The obligation of the Purchaser to purchase and pay
for the Bonds and the obligation of the Issuer to sell the Bonds to the
Purchaser shall be subject to the following conditions precedent:

     

    (a) The
representations and warranties of the Company herein and the representations and
warranties made in each of the Loan Documents by the respective parties thereto
shall be true, correct and complete on the date hereof and on the Closing Date,
and each such party to the Loan Documents, including the Company, shall deliver
a certificate to such effect on the Closing Date.  The Issuer and the
Company shall have performed all of their obligations hereunder, and the
statements made on behalf of the Issuer and the Company hereunder shall be true
and correct on the date hereof and on the Closing Date, and the Issuer and the
Company shall deliver certificates to such effect on the Closing
Date.

     

    (b) Each of
the Loan Documents, the Resolution and all other official action of the Issuer
relating thereto shall be in full force and effect and shall not have been
amended, modified or supplemented without the written approval of the
Purchaser.

     

    (c) The
Issuer shall have received the approving opinion of Bond Counsel in form and
substance reasonably acceptable to the Purchaser, and the Purchaser shall have
received a letter from Bond Counsel dated the Closing Date and addressed to the
Purchaser, to the effect that the Purchaser may rely upon such firm's opinion as
if it were addressed to the Purchaser.

     

    (d) The
Purchaser shall have received the opinion of counsel to the Issuer, dated the
Closing Date and addressed to the Purchaser in form and substance reasonably
acceptable to the Purchaser.

     

    (e) No
default or event of default (as defined in any of the Loan Documents) shall have
occurred and be continuing, and no event shall have occurred and be continuing
as of the Closing Date that, with the lapse of time or the giving of notice or
both, would constitute such a default or event of default.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (f) No
material adverse change shall have occurred, nor shall any development involving
a prospective material and adverse change in, or affecting the affairs,
business, financial condition, result of operations, prospects or properties
(including any subproject included in the definition of Project) of the Issuer
or the Company have occurred, between the date hereof and the Closing Date;
and

     

    (g) On or
prior to the Closing Date, all actions required to be taken as of the Closing
Date in connection with the  Bonds and the Loan Documents by the
Issuer and the Company shall have been taken, and the Issuer and the Company
shall each have performed and complied with all agreements, covenants and
conditions required to be performed or complied with by this Agreement, the
Bonds and the Loan Documents, and each party shall deliver a certificate to such
effect insofar as the foregoing actions, agreements, covenants and conditions
apply to each such party, and each of such agreements shall be in full force and
effect and shall not have been amended, modified or supplemented, except as has
been agreed to in writing by the Purchaser.

     

    (h) Each of
the Loan Documents shall have been executed and delivered by each of the
respective parties thereto, all such documents shall be in forms provided to the
Purchaser on the date hereof with only such changes as the Purchaser may approve
in writing.

     

    (i) None of
the events referred to in Section 9 of this Agreement shall have
occurred.

     

    (j) The
Purchaser shall have received a certificate, dated the Closing Date and signed
on behalf of the Issuer, to the effect that:

     

    
      	
              (i)  

            	
              the
      Issuer has not received notice of any pending, nor to the Issuer's
      knowledge is there any threatened, action, suit, proceeding, inquiry or
      investigation against the Issuer, at law or in equity, by or before any
      court, public board or body, nor to the Issuer's knowledge is there any
      basis therefor, affecting the existence of the Issuer or the titles of its
      officials to their respective offices, or seeking to prohibit, restrain or
      enjoin the sale, issuance or delivery of the Bonds or the pledge of
      revenues or assets of the Issuer pledged or to be pledged to pay the
      principal of and interest on the Bonds, or in any way materially adversely
      affecting or questioning (A) the territorial jurisdiction of the Issuer,
      (B) the use of the proceeds of the  Bonds to permanently finance
      the subprojects included in the definition of Project, (C) the validity or
      enforceability of the  Bonds, any proceedings of the Issuer
      taken with respect to the Bonds, or any of the Loan Documents to which it
      is a party, (D) the execution and delivery of this Agreement or the Bonds,
      or (E) the power of the Issuer to carry out the transactions contemplated
      by this Agreement, the Bonds, the Indenture or any of the Loan Documents
      which the Issuer is a party; and

            

    

     

    
      	
              (ii)  

            	
              the
      Issuer has complied with all the covenants and satisfied all of the
      conditions on its part to be performed or satisfied at or prior to the
      Closing Date, and the representations and warranties of the Issuer
      contained herein and in each of the Loan Documents to which it is a party
      are true and correct as of the Closing
Date.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (k) The
Purchaser shall have received an opinion of counsel to the Company, dated the
Closing Date and addressed to the Purchaser in form and substance reasonably
acceptable to the Purchaser.

     

    (l) The
Purchaser shall have received certificates dated the Closing Date from the
Company to the effect that the Company has complied with all of the covenants
and satisfied all of the conditions to be performed or satisfied by it on or
prior to the Closing Date, and the representations and warranties of the Company
contained in this Agreement and in each of the Loan Documents to which it is a
party are true, correct and complete as of the Closing Date, and it has full
legal right, power and authority to enter into and carry out the transactions
contemplated by the Loan Documents.

     

    (m) The
Purchaser shall have received a certificate, dated the Closing Date and signed
by an authorized officer of the Trustee, to the effect that (i) he or she is an
authorized officer of the Trustee, (ii) the Indenture has been duly executed and
delivered by the Trustee, (iii) the Trustee has all necessary corporate and
trust powers required to carry out the trust created by the Indenture, (iv) to
the best of his or her knowledge, the acceptance by the Trustee of the duties
and obligations of the Trustee under the Indenture and compliance with the
provisions thereof will not conflict with or constitute a breach of or default
under any law, administrative regulation, consent decree or any agreement or
other instrument to which the Trustee is subject or by which the Trustee is
bound, and (v) the Trustee has duly authenticated the Bonds, and the person
signing the certificate of authentication on each Bond has been duly authorized
to do so.

     

    (n) Evidence,
reasonably satisfactory in form and substance to the Purchaser and Bond Counsel,
of a satisfactory and favorable conclusion to a Bond validation proceeding under
the laws of the State with respect to the Bonds shall have been
received.

     

    (o) Such
additional certificates, opinions and other documents as the Purchaser or Bond
Counsel may reasonably request to evidence performance of or compliance with the
provisions of this Agreement and the transactions contemplated hereby and by the
issuance and sale of the Bonds, all such certificates and other documents to be
reasonably satisfactory in form and substance to the Purchaser, shall have been
received.

     

    (p) If any
conditions to the obligations of the Purchaser or the Issuer contained in this
Agreement are not satisfied and the satisfaction of such conditions shall not be
waived by the Purchaser, then, at the option of the Purchaser (i) the Closing
Date shall be postponed for such period as may be deemed necessary for such
Conditions to be satisfied or (ii) without limiting the generality of Section 14
of this Agreement, the obligations of the Purchaser and the Issuer under this
Agreement shall terminate, neither the Purchaser nor the Issuer shall have any
further obligations or liabilities hereunder, and the Company shall have no
further obligations or liabilities hereunder other than its obligations under
Section 5 hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (q) All of
the legal opinions, certificates, proceedings, instruments and other documents
mentioned above or elsewhere in this Agreement shall be deemed to be in
compliance with the provisions hereof if, but only if, they are in form and
substance reasonably satisfactory to the Purchaser and the Issuer.

     

    (r) As of the
Closing Date, no event of default (as defined in the Loan Documents) shall have
occurred and be continuing, nor shall any event have occurred and be continuing
as of the Closing Date which, with the lapse of time, would constitute such a
default.

     

    9. TERMINATION.  The
Purchaser may terminate its obligations hereunder by written notice to the
Issuer if, at any time subsequent to the date hereof and on or prior to the
Closing Date:

     

    (a) There
shall have occurred any material change in the business or affairs of the Issuer
or the Company or any material change in the Project that materially adversely
affects the financial condition, business, properties or prospects of the
Company.

     

    (b) Any
condition to the Purchaser's obligations hereunder is not satisfied because of
any refusal, inability or failure on the part of the Company or the Issuer to
comply with any of the terms or to fulfill any of the conditions provided for or
contemplated by this Agreement, or if for any reason the Company, the Trustee or
the Issuer shall be unable to perform all of their obligations or satisfy
conditions, respectively, provided for or contemplated in this Agreement or the
Loan Documents.

     

    10. EXPENSES.  Except as
otherwise provided herein, the Company shall cause to be paid out of its own
funds, or the proceeds of the Bonds, the costs of issuing the Bonds, including,
but not limited to, the fees and expenses described in Section 5 of this
Agreement, whether or not the sale of the Bonds by the Issuer to the Purchaser
is consummated.

     

    11. CONDITION OF THE ISSUER'S
OBLIGATIONS.  The Issuer's obligations hereunder are subject to
the Purchaser's performance of its obligations hereunder.

     

    12. NOTICES.  Any notice
or other communication to be given under this Agreement may be given by
delivering the same in writing and shall be deemed given, unless otherwise
required herein, when received by registered or certified mail, return receipt
requested, postage prepaid; or when received by overnight delivery; or when
personally delivered; addressed as follows:

     

    If to the
Issuer:                     Mississippi
Business Finance Corporation

    Attention:  William
T. Barry

    735
Riverside Drive, Suite 300

    Jackson,
MS  39201

     

    If to the
Purchaser:             Boardwalk
Pipelines, LP

    Attention:  Mr.
James Jones

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Phone
713-479-8294

    Facsimile
Number:   James.Jones@bwpmlp.com

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    If to the
Company:                Gulf
South Pipeline Company, LP

    Attn:  Mr.
James Jones

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Phone
713-479-8294

    E-Mail:  James.Jones@bwpmlp.com

    

    If to the
Trustee:                   Hancock
Bank

    Attention:  Susan
Tsimortos

    1855
Lakeland Drive, Suite Q-230

    Jackson, MS 39216

    Telephone
Number:  601-981-7452

    Facsimile
Number:   601-368-9457

    

    13. SUCCESSORS.  This
Agreement is made solely for the benefit of the Issuer, the Purchaser and the
Company (including their successor or assigns) and no other person shall acquire
or have any right hereunder by virtue hereof (other than pursuant to Section 5
hereof).

     

    14. SURVIVAL OF CERTAIN REPRESENTATIONS
AND WARRANTIES.  All agreements, covenants, representations and
warranties and all other statements of the Issuer and the Company set forth in
or made pursuant to this Agreement shall remain in full force and effect and
shall survive the Closing Date and the delivery of the Bonds.

     

    15. GOVERNING LAW.  This
Agreement shall be governed by the laws of the State.

     

    16. MISCELLANEOUS.  This
Agreement constitutes the only agreement among the parties hereto relating to
the subject matter hereof, and it supersedes and cancels any and all previous
contracts, agreements or understandings with respect thereto.  This
Agreement may not be amended or modified except in writing executed by all
parties hereto.  Capitalized terms not otherwise defined herein shall
have the meaning assigned to them in the Indenture and the Loan
Agreement.

     

    17. COUNTERPARTS.  This
Agreement may be executed in several counterparts, each of which shall be an
original and all of which shall constitute one and the same
instrument.

     

    18. EFFECTIVE
DATE.  This Bond Purchase Agreement shall be effective as of
December 1, 2008, although executed on the respective dates set forth
below.

     

    19. DEFINED TERMS.  The
terms defined herein shall have the meanings set forth in the Loan Agreement and
the Indenture.

     

    

     

    [Remainder
of Page Intentionally Left Blank.]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    Very
truly yours,

    

    BOARDWALK
PIPELINES, LP

    By:           Boardwalk
Operating GP, LLC

    Its:           General
Partner

    

    By:           Boardwalk
Pipeline Partners, LP

    Its:           Sole
Member

    

    By:           Boardwalk
GP, LP

    Its:           General
Partner

    

    By:           Boardwalk
GP, LLC

    Its:           General
Partner

    

    

    By:
__________________________________           

                                                                               
Jamie Buskill, Senior Vice
President,

                                                                                                              
Chief Financial Officer and Treasurer

    

    Dated:                      As
of December 1, 2008

    

    MISSISSIPPI
BUSINESS FINANCE

    CORPORATION

    

    

    By: ___________________________________          

    William T. Barry, Executive
Director

    

    Accepted
as of December 1, 2008

    

    GULF
SOUTH PIPELINE COMPANY, LP

    By:           GS
Pipeline Company

    Its:           General
Partner

    

    

    By:  __________________________________         

                 Jamie
Buskill, Senior Vice President,

                                                                                                               
Chief Financial Officer and Treasurer

    

    

    Accepted
as of December 1, 2008

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    [Signature
Page to Bond Purchase Agreement.]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    NOTICE
OF BORROWING AND DESIGNATION OF

    ADVANCE
UNDER BONDS TO BE DELIVERED TO UNDERSIGNED

    PURCHASER
AND RELATED CERTIFICATES

    

    

    

    Boardwalk
Pipelines, LP

    3800
Frederica Street

    Owensboro,
KY 42301

    

    

    
      	
               
      

            	
              RE:

            	
              $175,000,000
      Maximum Principal Amount Mississippi Business Finance Corporation Taxable
      Industrial Development Revenue Bonds, Series 2008 (Gulf South Pipeline
      Company, LP Project) (the "Bonds")

            

    

    

    

    Ladies
and Gentlemen:

    

    Pursuant
to that certain (i) Bond Purchase Agreement, dated as of December 1, 2008, (the
"Bond Purchase Agreement"), between and among the Mississippi Business Finance
Corporation (the "Issuer"), Boardwalk Pipelines, LP (the "Purchaser"), as
purchaser of the captioned Bonds, Gulf South Pipeline Company, LP, a Delaware
limited partnership (the "Company"), as borrower under that certain Loan
Agreement with the Issuer relating to the captioned Bonds, dated as
of  December 1, 2008, (the "Loan Agreement"), and (ii) Trust Indenture
dated as of December 1, 2008, between Hancock Bank, as trustee (the "Trustee")
and the Issuer (the "Indenture"), the Company hereby notifies you as follows
(capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture or the Loan Agreement referred to herein).

     

    The
Company requests the Purchaser to take delivery of an advance upon the fully
registered Bond of Series 2008 held by it in the principal amount of $__________
for the Project upon payment by it of the purchase price of $____________ to the
Trustee as provided in the Bond Purchase Agreement and the
Indenture.

     

    The
Company also designates [____________] as the date of such advance.

     

    No event
or circumstance has occurred and is continuing, or would result from the making
of such borrowing by the Company or the making of such Advance by the Issuer
which constitutes an Event of Default or would constitute an Event of Default
with the giving of any required notice or lapse of time, or both, or which when
considered by itself or together other past or then existing events or
circumstances, constitute or would constitute a material adverse change in the
business prospects or financial condition of the Company.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    The
Company hereby further certifies that the principal amount of the advance upon
the Bonds designated for delivery hereinabove, when added to the principal
amount of other Bond or Bonds issued pursuant to the Indenture and advances
thereupon heretofore delivered by the Issuer to the Purchaser or to any other
Registered Owner does not exceed $175,000,000 and will not exceed the
anticipated total cost to finance the Project (as more fully described in the
aforesaid Loan Agreement).

     

    The
Company and the Purchaser hereby direct the Trustee to indicate the foregoing
amounts on the Note dated December ___, 2008 and the Company hereby directs the
Purchaser to indicate the foregoing amounts on the Bond, each heretofore
delivered to the Issuer and assigned to the Trustee in accordance with the
Indenture.

     

    IN WITNESS WHEREOF, the
Company has caused this instrument to be executed on its behalf by the   of its general
partner this ____ day of ____________, 2008.

     

    

    GULF
SOUTH PIPELINE COMPANY, LP

    By:           GS
Pipeline Company, LLC

    Its:           General
Partner

    

    

    By:          __________________________________

    __________________________________

     

    
      	 
      

    

    

    
      
        
           

        

         

      

      
        A-2

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