Document:

Exhibit 10.12

 

FORM OF

 

AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

ENOGEX
LLC

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Construction

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  ORGANIZATION

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Name; Formation

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Term

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Principal Place of Business,
  Office and Agent

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Purpose of the Company;
  Business

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Powers of the Company

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Fictitious Business Name
  Statement; Other Certificates

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  No Partnership Intended

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  MATTERS
  RELATING TO MEMBERS

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Class of Membership
  Interests

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Names, Addresses and Sharing
  Ratios

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Creation of Additional
  Membership Interest

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Certificates for Membership
  Interests

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Loans and Capital
  Contributions by Members

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  No Liability of Members.

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
  CAPITAL
  CONTRIBUTIONS

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Initial Capital Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Return of Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Capital Accounts

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
  ALLOCATIONS
  AND DISTRIBUTIONS

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Allocations

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Distributions.

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
  RIGHTS AND
  OBLIGATIONS OF MEMBERS

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Meetings of Members; Written
  Consents

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Priority and Return of
  Capital

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Competition

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Admission of Additional
  Members

  	
  13

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
  MANAGEMENT
  AND CONTROL

  	
  13

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Delegation to Managing Member

  	
  13

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Authority of the Managing
  Member

  	
  13

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Officers

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Duties of Officers

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Indemnification.

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Liability of Indemnitees.

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
  ACCOUNTING
  METHOD, PERIOD, RECORDS, REPORTS AND BANK ACCOUNTS

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Accounting Method

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Accounting Period

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Books and Records

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Reports

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  Inspection

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Bank Accounts

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  TAX MATTERS

  	
  18

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Tax Returns

  	
  18

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Tax Elections

  	
  19

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Tax Matters Partner

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
  DISSOLUTION,
  WINDING UP AND TERMINATION

  	
  19

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Dissolution

  	
  19

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Winding-Up and Termination

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
  MERGER

  	
  21

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Authority

  	
  21

  
	
   

  	
   

  	
   

  
	
  11.2

  	
  Procedure for Merger or
  Consolidation

  	
  21

  
	
   

  	
   

  	
   

  
	
  11.3

  	
  Certificate of Merger or
  Consolidation

  	
  22

  
	
   

  	
   

  	
   

  
	
  11.4

  	
  Effect of Merger or
  Consolidation.

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  	
  GENERAL
  PROVISIONS

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Notices

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  Entire Agreement; Supersedure

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.3

  	
  Effect of Waiver or Consent

  	
  23

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
  12.4

  	
  Amendment or Restatement

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.5

  	
  Binding Effect

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.6

  	
  Governing Law; Severability

  	
  23

  
	
   

  	
   

  	
   

  
	
  12.7

  	
  Further Assurances

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.8

  	
  Offset

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.9

  	
  Counterparts

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.10

  	
  Headings

  	
  24

  

 

iii

 

AMENDED AND
RESTATED LIMITED LIABILITY COMPANY AGREEMENT 

OF

ENOGEX LLC

 

a Delaware
limited liability company

 

THIS AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF ENOGEX LLC, dated and
effective as of
[                  ],
2008 is entered into by and between ENOGEX OPERATING LLC, a Delaware limited
liability company (“Enogex Operating”), and OGE ENOGEX HOLDINGS LLC, a
Delaware limited liability company (“OGE Enogex Holdings”).  Enogex Operating and OGE Enogex Holdings are
sometimes hereinafter referred to collectively as the “Members” and
individually as a “Member.”

 

RECITALS

 

A.            OGE Energy Corp., an
Oklahoma corporation (“OGE Energy”), is the sole member of OGE Enogex
Holdings.

 

B.            OGE Enogex Holdings is
the sole member of OGE Enogex GP LLC, a Delaware limited liability company (“OGE
Enogex GP”), and a limited partner of OGE Enogex Partners L.P., a Delaware
limited partnership (“OGE Enogex Partners”).

 

C.            OGE Enogex GP is the
general partner of OGE Enogex Partners.

 

D.            OGE Enogex Partners is
the sole member of Enogex Operating.

 

E.             The Company was
originally formed as Navigator Newco Inc., a Delaware corporation (“Enogex
Delaware Predecessor”), on November 21, 2007 by the filing of a
Certificate of Incorporation with the Secretary of State of the State of
Delaware.

 

F.             Pursuant to the
Agreement and Plan of Merger, effective April 1, 2008, Enogex Inc., an
Oklahoma corporation (“Enogex Oklahoma Predecessor”), merged with and
into Enogex Delaware Predecessor, with Enogex Delaware Predecessor continuing
as the surviving entity.

 

G.            Enogex Delaware
Predecessor was converted into Enogex LLC, a Delaware limited liability
company, pursuant to the General Corporation Law of the State of Delaware and
the Delaware Limited Liability Company Act, 6 Del. C. §18-101 et seq. (as from
time to time amended and including any successor statute, the “Act”)
immediately after the merger of Enogex Oklahoma Predecessor into Enogex
Delaware Predecessor on April, 2008 by the filing of a Certificate of
Conversion and Certificate of Formation of Enogex LLC (the “Certificates”)
with the Secretary of State of the State of Delaware and the execution of the
Existing Agreement (as defined below).

 

H.            The Limited Liability
Company Agreement of the Company (the “Existing Agreement”) was executed
effective April 1, 2008 by OGE Energy, as sole member of the Company.

 

 

I.              Prior to
[                  ],
2008, OGE held all of the limited liability company interest in the Company.

 

J.             On
[                        ],
2008, Enogex Operating and OGE Enogex Holdings entered into that certain
Contribution, Conveyance and Assumption Agreement by and among OGE Energy, OGE
Enogex Holdings, OGE Enogex GP, Enogex Operating, OGE Enogex Partners and the
Company whereby OGE Energy contributed approximately twenty-five (25) percent
of its limited liability company interest in the Company to Enogex Operating
and approximately seventy-five (75) percent of its limited liability company
interest in the Company to OGE Enogex Holdings upon the terms and in exchange
for the consideration set forth therein.

 

J.             The Members deem it advisable
to amend and restate the Existing Agreement in its entirety as set forth
herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein made
and intending to be legally bound, the Members hereby agree as follows:

 

ARTICLE 1.  DEFINITIONS

 

1.1           Definitions.  As used in this Agreement, the following
terms have the following meanings:

 

“Act”
shall have the meaning set forth in the recitals above.

 

“Affiliate”
means, with respect to a Person, a Person that directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common
control with the Person in question and any officer, director or manager of any
such Person that is not an individual. “Control” means the power to direct or
cause the direction of the management and policies of such Person whether
through ownership of voting securities, by contract or otherwise.

 

“Agreement”
means this Amended and Restated Limited Liability Company Agreement as
originally executed and as it may be amended or restated from time to time.

 

“Allocation
Regulations” means Treas. Reg. §§ 1.704-1(b), 1.704-2 and 1.704-3
(including any temporary regulations) as such regulations may be amended and in
effect from time to time and any corresponding provision of succeeding
regulations.

 

“Bankruptcy”
or “Bankrupt” means with respect to any Person, that (a) such
Person (i) makes an assignment for the benefit of creditors; (ii) files
a voluntary petition in bankruptcy; (iii) is insolvent, or has entered
against such Person an order for relief in any bankruptcy or insolvency
proceeding; (iv) files a petition or answer seeking for such Person any
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any Law; (v) files an answer or other
pleading admitting or failing to contest the material allegations of a petition
filed against such Person in a proceeding of the type described in subclauses (i) through
(iv) of this clause (a); or (vi) seeks, consents to or acquiesces in
the appointment of a trustee, receiver or liquidator of such Person or of all
or any substantial part of such Person’s properties; or (b) 120 Days have
passed after the commencement of any proceeding seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any Law, 

 

2

 

if the
proceeding has not been dismissed, or 90 Days have passed after the appointment
without such Person’s consent or acquiescence of a trustee, receiver or
liquidator of such Person or of all or any substantial part of such Person’s
properties, if the appointment is not vacated or stayed, or 90 Days have passed
after the date of expiration of any such stay, if the appointment has not been vacated.  With respect to a Member, the foregoing
definition of “Bankruptcy” is intended to replace and shall supersede and
replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and
18-304 of the Act.

 

“Business
Day” means any day, other than Saturday, Sunday or a day national banks are
authorized or required to be closed in Oklahoma City, Oklahoma.

 

“Capital
Contributions” means, in respect of any Member, the contributions made, or
deemed to have been made by or on behalf of such Member, to the Company
pursuant to this Agreement.

 

“Carrying
Value” means (a) with respect to property contributed to the Company,
the fair market value of such property at the time of contribution reduced (but
not below zero) by all depreciation, depletion (computed as a separate item of
deduction), amortization and cost recovery deductions charged to the Members’
capital accounts, (b) with respect to any property whose value is adjusted
pursuant to the Allocation Regulations, the adjusted value of such property reduced
(but not below zero) by all depreciation and cost recovery deductions charged
to the Member’s capital accounts and (c) with respect to any other Company
property, the adjusted basis of such property for federal income tax purposes,
all as of the time of determination.

 

“Certificates”
shall have the meaning set forth in the recitals above.

 

“Class A
Member” means Enogex Operating and any Person who is admitted as an
additional or a substitute Class A Member pursuant to the terms of this
Agreement, in its capacity as a member of the Company.

 

“Class A
Membership Interests” means Membership Interests owned by Class A
Members.

 

“Class B
Member” means OGE Enogex Holdings and any Person who is admitted as an
additional or a substitute Class B Member pursuant to the terms of this
Agreement, in its capacity as a member of the Company.

 

“Class B
Membership Interests” means Membership Interests owned by Class B
Members.

 

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

 

“Company”
means Enogex LLC, a Delaware limited liability company.

 

“Conflicts
Committee” shall have the meaning set forth in the Partnership Agreement.

 

3

 

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

 

“Dissolution
Event” shall have the meaning set forth in Section 10.1(a).

 

“Enogex
Delaware Predecessor” shall have the meaning set forth in the recitals
above.

 

“Enogex
Oklahoma Predecessor” shall have the meaning set forth in the recitals
above.

 

“Enogex
Operating” shall have the meaning set forth in the introductory paragraph.

 

“Existing
Agreement” shall have the meaning set forth in the recitals above.

 

“Indemnitee”
shall have the meaning set forth in Section 7.5(a).

 

“Law”
means any applicable constitutional provision, statute, act, code (including the
Code), law, regulation, rule, ordinance, order, decree, ruling, proclamation,
resolution, judgment, decision, declaration or interpretative or advisory
opinion or letter of a governmental authority.

 

“Managing
Member” means Enogex Operating or its successor, in its capacity as
managing Member.

 

“Member”
or “Members” means the Class A Member and Class B Member who
execute a counterpart of this Agreement and each of the Persons who may
hereafter become admitted as a Member.

 

“Membership
Interest” means, with respect to any Member, (a) that Member’s limited
liability company interest in the Company, including its share of the income,
gain, loss, deduction and credits of, and the right to receive distributions
from, the Company; (b) all other rights, benefits and privileges enjoyed
by that Member (under the Act, this Agreement or otherwise) resulting from its
ownership of a limited liability company interest in the Company; and (c) all
obligations, duties and liabilities imposed on that Member (under the Act, this
Agreement or otherwise) resulting from its ownership of a limited liability
company interest in the Company, including any obligations to make Capital
Contributions.

 

“Merger
Agreement” shall have the meaning set forth in Section 11.1.

 

“OGE Energy”
shall have the meaning set forth in the recitals above.

 

“OGE Enogex
GP” shall have the meaning set forth in the recitals above.

 

“OGE Enogex
Holdings” shall have the meaning set forth in the introductory paragraph.

 

“OGE Enogex
Partners” shall have the meaning set forth in the recitals above.

 

“Partnership
Agreement” means the First Amended and Restated Agreement of Limited
Partnership of OGE Enogex Partners L.P., dated as of
[                  ],
2008, as it may be amended or restated from time to time.

 

4

 

“Person”
means a natural person, partnership (whether general or limited), limited
liability company, governmental entity, trust, estate, association,
corporation, venture, custodian, nominee or any other individual or entity in
its own or any representative capacity.

 

“Regulatory
Allocations” shall have the meaning set forth in Section 5.1(b)(viii).

 

“Sharing
Ratio” means, subject in each case to adjustments as determined by the
Managing Member in accordance with this Agreement or in connection with
dispositions of Membership Interests, (a) in the case of a Member
executing this Agreement as of the date of this Agreement or a Person acquiring
such Member’s Membership Interest, the percentage specified for that Member as
its Sharing Ratio on Exhibit A, and (b) in the case of Membership
Interests issued pursuant to Section 3.3, the Sharing Ratio established
pursuant thereto; provided, however, that the total of all Sharing Ratios shall
always equal 100%.

 

“Surviving Business Entity” shall have the meaning set forth in Section 11.2(b).

 

1.2           Construction.  Unless the context requires otherwise: (a) the
gender (or lack of gender) of all words used in this Agreement includes the
masculine, feminine and neuter; (b) references to Articles and Sections
refer to Articles and Sections of this Agreement; (c) references to Laws
refer to such Laws as they may be amended from time to time, and references to
particular provisions of a Law include any corresponding provisions of any
succeeding Law; (d) references to money refer to legal currency of the
United States of America; (e) “including” means “including without
limitation” and is a term of illustration and not of limitation; (f) all
definitions set forth herein shall be deemed applicable whether the words
defined are used herein in the singular or the plural; and (g) it is the
intent of the parties hereto that neither this Agreement nor any other
agreement, document or instrument referred to herein or executed and delivered
in connection herewith shall be construed against any Person as the principal
draftsperson hereof or thereof.

 

ARTICLE 2.  ORGANIZATION

 

2.1           Name;
Formation.  The name of the
Company is: “Enogex LLC”.  The Company
was originally organized as a Delaware corporation by the filing of a
Certificate of Incorporation on November 21, 2007 with the Secretary of
State of the State of Delaware.  The
Company was converted into a limited liability company by the filing of the
Certificates on April 1, 2008 with the Secretary of State of the State of
Delaware under and pursuant to the Act and the execution of the Existing
Agreement.  The Managing Member, and any
Person designated by the Managing Member, shall be an “authorized person” of
the Company within the meaning of the Act and shall continue as the designated “authorized
person” of the Company within the meaning of the Act to execute, deliver and
file any certificates or documents (and any amendments, restatements or
corrections thereto) permitted or required to be filed with the Secretary of
State of the State of Delaware.  The
Company is a limited liability company under the Act governed by this Agreement
and the Act.  The Company is a legal
entity separate from the Members.  The
rights, powers, duties, obligations and liabilities of the Members shall be
determined pursuant to the Act and this Agreement.  To the extent that the rights, powers,
duties, obligations and liabilities of the Members are different by any
provision of this Agreement than 

 

5

 

they would be in the
absence of such provision, this Agreement shall, to the extent permitted by the
Act, control.

 

2.2           Term.  The term of existence of the
Company shall be perpetual, unless the Company is dissolved and terminated in
accordance with the provisions of this Agreement or the Act.

 

2.3           Principal
Place of Business, Office and Agent. 
The Company’s principal place of business, which is also the mailing
address and the office where the Company’s records are kept, is Enogex LLC, c/o
OGE Enogex Partners L.P., 600 Central Park Two, 515 Central Park Drive,
Oklahoma City, Oklahoma 73105.  The
registered office of the Company in the State of Delaware is the office of the
registered agent of the Company in the State of Delaware.  The registered agent of the Company in the
State of Delaware is The Corporation Trust Company, located at Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.  The Managing Member may change the registered
agent in the State of Delaware or the principal place of business of the
Company and may establish additional places of business or offices for
maintenance of records.  The Managing
Member shall amend the Certificates and this Section 2.3 to reflect each
change in the identity or address of the registered agent in the State of
Delaware.

 

2.4           Purpose of
the Company; Business.  The
purpose of the Company is to (a) carry on any business permitted by the
Act and (b) perform all things necessary or incidental to or connected
with or growing out of those activities in accordance with this Agreement.

 

2.5           Powers of
the Company.  Subject to the
provisions of this Agreement, the Company shall have the power and authority to
take any and all actions necessary, appropriate, proper, advisable, convenient
or incidental to or for the furtherance of the purposes set forth in Section 2.4.

 

2.6           Fictitious
Business Name Statement; Other Certificates.  The Managing Member or the officers of the
Company may, from time to time, register the Company as a foreign limited
liability company and file fictitious or trade name statements, certificates or
similar filings in those jurisdictions and offices as the Managing Member
considers necessary or appropriate.  The Company
may do business under any fictitious business names approved by the Managing
Member.  The Managing Member or officers
of the Company will, from time to time, file or cause to be filed certificates
of amendment, certificates of cancellation or other certificates as the
Managing Member or any of the officers reasonably considers necessary or
appropriate under the Act, as an authorized person of the Company within the
meaning of the Act, or under the Laws of any jurisdiction in which the Company
is doing business to establish and continue the Company as a limited liability
company or to protect the limited liability of the Members.  At the request of the Managing Member or
officers, each Member shall execute, acknowledge, swear to, and deliver all
certificates and other instruments conforming with this Agreement that are
necessary or appropriate for the furtherance of the purposes set forth in this Section 2.6.

 

2.7           No
Partnership Intended.  The
Members intend that the Company shall not be a partnership (including a general
or limited partnership) or joint venture, and that no Member 

 

6

 

shall be a partner or
joint venturer of any other Member by virtue of this Agreement, for any
purposes other than federal and, if applicable, state tax purposes, and neither
this Agreement nor any other document entered into by the Company or any Member
shall be construed to suggest otherwise. 
The Members intend that the Company shall be treated as a partnership
for federal and, if applicable, state income tax purposes, and each Member and
the Company shall file all tax returns and shall otherwise take all tax and
financial reporting positions in a manner consistent with such treatment.

 

ARTICLE 3.  MATTERS RELATING TO MEMBERS

 

3.1           Class of Membership Interests.  As of the date hereof, the
Company shall have two classes of Membership Interests: (a) Class A
Membership Interests and (b) Class B Membership Interests, which
shall be the sole limited liability company interests issued and outstanding on
the date hereof.  Except as
otherwise specifically provided herein, Class B Membership Interests will
not entitle the Class B Members to have, and Class B Members, in
their capacities as such, shall not have (except as otherwise specifically
provided herein), any voting, consent or approval rights whatsoever with
respect to the Company, whether arising under the Act, at law, in equity or
otherwise.  Upon its execution of this
Agreement, (i) the Class A Member is hereby issued all of the Class A
Membership Interests, and (ii) the Class B Member is hereby issued
all of the Class B Membership Interests. 
Such Class A Membership Interests and Class B Membership
Interests are fully paid and non-assessable limited liability company interests
in the Company, except as otherwise provided in Sections 18-607 and 18-804 of
the Act.

 

3.2           Names, Addresses and Sharing Ratios. 
The name, residence,
business or mailing addresses and Sharing Ratio of each Member are set forth on
Exhibit A.  Any reference in this
Agreement to Exhibit A shall be deemed to be a reference to Exhibit A
as amended and in effect from time to time in accordance with the terms of this
Agreement.  Each Person listed on Exhibit A
shall, upon his, her or its execution of this Agreement or counterpart thereto,
be admitted to the Company as a Member of the Company.

 

3.3           Creation of Additional Membership Interest.  The Company may issue additional Membership
Interests in the Company only upon the approval or consent of all Members and
the board of directors of OGE Enogex GP.

 

3.4           Certificates for Membership Interests.  Membership Interests may, but need not, be
represented by a Certificate of Membership. 
The exact contents of a Certificate of Membership, if any, shall be
determined by the Managing Member.

 

3.5           Loans and
Capital Contributions by Members.  No
Member, as such, shall be required to lend any funds to the Company or to make
any contribution of capital to the Company, except as otherwise required by
applicable Law, this Agreement or any other written agreement between such
Member and the Company explicitly requiring the making of capital
contributions.  Any Member may, with the
approval of the Conflicts Committee, make loans to the Company, and any loan by
a Member to the Company shall not be considered to be a Capital
Contribution.  Such loans shall be on
such terms as shall be specified and agreed to by the Member making such loans
and as shall be approved by the Conflicts Committee.

 

7

 

3.6           No Liability
of Members.

 

(a)           No Liability.  The Members shall not be required to perform
any act on behalf of the Company, incur any expense, obligation or indebtedness
of any nature on behalf of the Company, or in any manner participate in the
management of the Company, except as specifically contemplated hereunder.  Except as otherwise required by applicable
Law, no Member shall have any personal liability whatsoever in such Member’s
capacity as a Member, whether to the Company, to any of the other Members, to
the creditors of the Company or to any other third party, for the debts,
liabilities, commitments or any other obligations of the Company or for any
losses of the Company.

 

(b)           Distributions.  In accordance with the Act and the Laws of
the State of Delaware, a member of a limited liability company may, under
certain circumstances, be required to return amounts previously distributed to
such member.  It is the intent of the
Members that no distribution to any Member pursuant to Article 5 hereof
shall be deemed a return of money or other property paid or distributed in
violation of the Act.  The payment of any
such money or distribution of any such property to a Member shall be deemed to
be a compromise within the meaning of the Act, and the Member receiving any
such money or property shall not be required to return to any Person any such
money or property.  However, if any court
of competent jurisdiction holds that, notwithstanding the provisions of this
Agreement, any Member is obligated to make any such payment, such obligation
shall be the obligation of such Member and not of any other Member.

 

ARTICLE 4.  CAPITAL CONTRIBUTIONS

 

4.1           Initial Capital Contributions.

 

(a)           The amount of money and
the fair market value (as of the date of contribution) of any property (other
than money) contributed to the Company by a Member shall constitute a Capital
Contribution.  Any reference in this
Agreement to the Capital Contribution of a Member shall include a Capital
Contribution of its predecessors in interest.

 

(b)           Enogex Operating or its
predecessor in interest has made certain Capital Contributions on or prior to
the date hereof.

 

(c)           OGE Enogex Holdings or
its predecessor in interest has made certain Capital Contributions on or prior
to the date hereof.

 

(d)           No Member shall be
required to make any additional Capital Contributions.

 

4.2           Return of Contributions.  Except as expressly provided
herein, a Member is not entitled to the return of any part of its Capital
Contributions or to be paid interest in respect of its Capital Contributions.  An unrepaid Capital Contribution is not a
liability of the Company or of any Member. 
No Member will be required to contribute or to lend any cash or property
to the Company to enable the Company to return any Member’s Capital
Contributions.

 

8

 

4.3           Capital
Accounts.

 

(a)           A capital account shall be established and
maintained for each Member.  Each Member’s
capital account (i) shall be increased by (A) the amount of money
contributed by that Member to the Company, (B) the fair market value of
property contributed by that Member to the Company (net of liabilities secured
by the contributed property that the Company is considered to assume or take
subject to under section 752 of the Code), and (C) allocations to that
Member of Company income and gain (or items of income and gain), including
income and gain exempt from tax and income and gain described in Treas. Reg. §
1.704-1(b)(2)(iv)(g), but excluding income and gain described in Treas. Reg. §
1.704-1(b)(4)(i), and (ii) shall be decreased by (A) the amount of
money distributed to that Member by the Company, (B) the fair market value
of property to that Member by the Company (net of liabilities secured by the
distributed property or to which the property is subject that the Member is
considered to assume or take subject to under section 752 of the Code), (C) allocations
to that Member of expenditures of the Company described in section 705(a)(2)(B) of
the Code, and (D) allocations of Company loss and deduction (or items of
loss and deduction), including loss and deduction described in Treas. Reg. §
1.704-1(b)(2)(iv)(g), but excluding items described in clause (ii)(C) above
and loss or deduction described in Treas. Reg. § 1.704-1(b)(4)(i) or §
1.704-1(b)(4)(iii).  The Members’ capital
accounts also shall be maintained and adjusted as permitted by the provisions
of Treas. Reg. § 1.704-1(b)(2)(iv)(f) and as required by the other
provisions of Treas. Reg. §§ 1.704-1(b)(2)(iv) and 1.704-1(b)(4),
including adjustments to reflect the allocations to the Members of
depreciation, depletion, amortization and gain or loss as computed for book
purposes rather than the allocation of the corresponding items as computed for
tax purposes, as required by Treas. Reg. § 1.704-1(b)(2)(iv)(g).  A Member that has more than one Membership
Interest shall have a single capital account that reflects all its Membership
Interests, regardless of the class of Membership Interests owned by that Member
and regardless of the time or manner in which those Membership Interests were
acquired.

 

(b)           Except
as expressly provided herein, none of the Members shall have any obligation to
the Company or to any other Member to restore any negative balance in its
capital account.  None of the Members may
withdraw capital or receive any distributions except as specifically provided
in this Agreement.  No interest shall be
paid by the Company on any Capital Contributions except as specifically
provided in this Agreement.

 

(c)           If any Membership
Interest is transferred in accordance with this Agreement, the transferee or
other recipient of all or any portion of such Membership Interest shall succeed
to the capital account of the transferor to the extent such capital account
relates to the Membership Interest or a portion thereof so transferred.

 

(d)           Any Member that resigns
or withdraws from the Company without the prior approval of all other Members
shall forfeit such Member’s interest in its capital account, and the balance of
such capital account shall be allocated to the remaining Members in accordance
with their Sharing Ratios calculated after taking into account the removal of
the resigning or withdrawing Member.

 

9

 

ARTICLE 5.  ALLOCATIONS AND DISTRIBUTIONS

 

5.1                                 Allocations.

 

(a)                                  Except
as otherwise set forth in Section 5.1(b), for purposes of maintaining the
capital accounts and in determining the rights of the Members among themselves,
all items of income, gain, loss, deduction and credit of the Company shall be
allocated among the Members in accordance with their Sharing Ratios.

 

(b)                                 The
following special allocations shall be made prior to making any allocations
provided for in 5.1(a) above:

 

(i)                                     Minimum Gain Chargeback.  Notwithstanding any other provision hereof to
the contrary, if there is a net decrease in Minimum Gain (as generally defined
under Treas. Reg. § 1.704-1 or § 1.704-2) for a taxable year (or if there was a
net decrease in Minimum Gain for a prior taxable year and the Company did not
have sufficient amounts of income and gain during prior years to allocate among
the Members under this subsection 5.1(b)(i)), then items of income and gain
shall be allocated to each Member in an amount equal to such Member’s share of
the net decrease in such Minimum Gain (as determined pursuant to Treas. Reg. §
1.704-2(g)(2)).  It is the intent of the
Members that any allocation pursuant to this subsection 5.1(b)(i) shall
constitute a “minimum gain chargeback” under Treas. Reg. § 1.704-2(f) and
shall be interpreted consistently therewith.

 

(ii)                                  Member Nonrecourse Debt Minimum Gain Chargeback.
Notwithstanding any other provision of this Article 5, except subsection
5.1(b)(i), if there is a net decrease in Member Nonrecourse Debt Minimum Gain
(as generally defined under Treas. Reg. § 1.704-1 or § 1.704-2), during any
taxable year, any Member who has a share of the Member Nonrecourse Debt Minimum
Gain shall be allocated such amount of income and gain for such year (and subsequent
years, if necessary) determined in the manner required by Treas. Reg. §
1.704-2(i)(4) as is necessary to meet the requirements for a chargeback of
Member Nonrecourse Debt Minimum Gain.

 

(iii)                               Qualified Income Offset. Except as
provided in subsection 5.1(b)(i) and (ii) hereof, in the event any
Member unexpectedly receives any adjustments, allocations or distributions
described in Treas. Reg. Sections 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), items of Company income
and gain shall be specifically allocated to such Member in an amount and manner
sufficient to eliminate, to the extent required by the Allocation Regulations,
the deficit balance, if any, in its adjusted capital account created by such
adjustments, allocations or distributions as quickly as possible.

 

(iv)                              Gross Income Allocations.  In the event any Member has a deficit balance
in its adjusted capital account at the end of any Company taxable period in excess of the amount such Member is
obligated to restore pursuant to this Agreement and the amount such Member is
deemed obligated to restore pursuant to Treas. Reg. Sections 1.704-2(g) and
1.704-2(i)(5), such Member shall be specially allocated items of Company
gross income and gain in the amount of such excess as quickly as possible;
provided, that an allocation pursuant to this subsection 5.1(b)(iv) shall
be made only if and to the extent that such Member would have a deficit balance
in its adjusted capital account after all other allocations provided in this Section 5.1
have been tentatively made as if subsection 5.1(b)(iv) were not in this
Agreement.

 

10

 

(v)                                 Company Nonrecourse Deductions. Company
Nonrecourse Deductions (as determined under Treas. Reg. Section 1.704-2(c))
for any fiscal year shall be allocated among the Members in proportion to their
Membership Interests.

 

(vi)                              Member Nonrecourse Deductions.  Any Member Nonrecourse Deductions (as defined
under Treas. Reg. Section 1.704-2(i)(2)) shall be allocated pursuant to
Treas. Reg. Section 1.704-2(i) to the Member who bears the economic
risk of loss with respect to the partner nonrecourse debt to which it is
attributable.

 

(vii)                           Code Section 754 Adjustment.  To the extent an adjustment to the adjusted
tax basis of any Company asset pursuant to sections 734(b) or 743(b) of
the Code is required, pursuant to the Allocation Regulations, to be taken into
account in determining capital accounts, the amount of such adjustment to the
capital accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such
basis), and such item of gain or loss shall be specially allocated to the
Members in a manner consistent with the manner in which their capital accounts
are required to be adjusted pursuant to the Allocation Regulations.

 

(viii)                        Curative Allocation. The special
allocations set forth in subsections 5.1(b)(i)-(vi) (the “Regulatory
Allocations”) are intended to comply with the Allocation Regulations.
Notwithstanding any other provisions of this Section 5.1, the Regulatory
Allocations shall be taken into account in allocating items of income, gain,
loss and deduction among the Members such that, to the extent possible, the net
amount of allocations of such items and the Regulatory Allocations to each
Member shall be equal to the net amount that would have been allocated to each
Member if the Regulatory Allocations had not occurred.

 

(c)                                  For
federal income tax purposes, except as otherwise required by the Code, the
Allocation Regulations or the following sentence, each item of Company income,
gain, loss, deduction and credit shall be allocated among the Members in the
same manner as corresponding items are allocated in Section 5.1(a).  Notwithstanding any provisions contained
herein to the contrary, solely for federal income tax purposes, items of
income, depreciation, gain or loss with respect to property contributed or
deemed contributed to the Company by a Member or whose value is adjusted pursuant
to the Allocation Regulations shall be allocated among the Members so as to
take into account the variation between the Company’s tax basis in such
property and its Carrying Value in the manner provided under section 704(c) of
the Code and Treas. Reg. § 1.704-3(d) (i.e. the “remedial method”).

 

5.2                                 Distributions.

 

(a)                                  At
least once each fiscal quarter prior to the dissolution of the Company under Article 10,
the Managing Member shall determine in its reasonable judgment to what extent
(if any) the Company’s cash on hand exceeds its current and anticipated needs,
including, without limitation, for operating expenses, debt service,
acquisitions and a reasonable contingency reserve.  Except as otherwise set forth in this Section 5.2,
if such an excess exists, the Managing Member shall cause the Company to
distribute to the Members, in accordance with their Sharing Ratios, an amount
in cash equal to that excess.

 

11

 

(b)                                 From
time to time the Managing Member also may cause property of the Company other
than cash to be distributed to the Members, which distribution must be made in
accordance with their Sharing Ratios and may be made subject to existing
liabilities and obligations. Immediately prior to such a distribution, the
capital accounts of the Members shall be adjusted as provided in Treas. Reg. §
1.704-1(b)(2)(iv)(f).

 

(c)                                  Notwithstanding
any provision to the contrary contained in this Agreement, the Company shall
not be required to make a distribution to a Member on account of its interest
in the Company if such distribution would violate the Act or any other
applicable law.

 

ARTICLE 6.  RIGHTS AND OBLIGATIONS OF MEMBERS

 

6.1                                 Meetings of Members; Written Consents.

 

(a)                                  Meetings
of the Members may be called by the Managing Member or at the request of Class A
Members holding a majority of the Class A Membership Interests.  The Managing Member may designate any place,
either within or outside the State of Delaware, as the place of meeting for any
meeting of the Members.  If no
designation is made, the place of meeting will be the Company’s principal place
of business.

 

(b)                                 At
meetings of the Members, Class A Members who hold Class A Membership
Interests will be entitled to vote on any and all matters submitted to a vote
of the Members, except as specifically provided herein or where otherwise
required by the Act.  Except as otherwise
expressly provided in this Agreement, a vote of Members owning a majority of
the Membership Interests entitled to vote shall be required for any action to
be taken or adopted by the Members.

 

(c)                                  Any
Member may participate in a meeting by means of conference telephone or similar
communications equipment by which all persons participating in the meeting can
hear and speak to each other at the same time or in sequence, and participation
in a meeting pursuant to this provision shall constitute presence in person at
the meeting.

 

(d)                                 Any
action required or permitted to be taken at a meeting may be taken without a
meeting if a consent, in writing, setting forth the action so taken will be
signed by the Members required to approve such action.

 

6.2                                 Priority and Return of Capital.  Except as may be provided in this Agreement,
no Member shall have priority over any other Member, either as to the return of
Capital Contributions or as to profits, losses or distributions; provided that
this Section shall not apply to loans (as distinguished from Capital
Contributions) that a Member has made to the Company.

 

6.3                                 Competition.  Except as otherwise expressly provided in
this Agreement, each Member may engage in or possess an interest in any other
business venture or ventures, including any activity that is competitive with
the Company without offering any such opportunity to the Company, and neither
the Company nor any other Member shall have any rights in or to such venture or
ventures or activity or the income or profits derived therefrom.

 

12

 

6.4                                 Admission of Additional Members.  The Company shall not admit additional
Members without the prior written consent of all of the Members and the board
of directors of OGE Enogex GP.

 

ARTICLE 7.  MANAGEMENT AND CONTROL

 

7.1                                 Delegation to Managing Member.  Except as may be otherwise
specifically provided in this Agreement or the Act, the Members agree that they
shall act solely through the mechanisms provided herein relating to the
appointment and authority of the Managing Member.  Except as otherwise expressly
provided in this Agreement, no Member, in its capacity as such, shall
participate in the operation, management or control (within the meaning of the
Act) of the Company’s business, transact any business in the Company’s name or
have the power to sign documents for or otherwise bind the Company.

 

7.2                                 Authority of the Managing Member.

 

(a)                                  Except
as expressly provided herein, the Managing Member has all power and authority
to manage, and direct the management of, the business and affairs of the
Company.  Approval by or action taken by
the Managing Member constitutes approval or action by the Company and is
binding on each Member.

 

(b)                                 Subject
to the limitations imposed by the Act and this Agreement, the Managing Member
has the power to conduct, manage and control both the ordinary business of the
Company and extraordinary transactions including without limitation the power
to:

 

(i)                                     approve
the acquisition, disposition, purchase, sale, exchange or liquidation of the
assets or property of the Company;

 

(ii)                                  authorize
any distribution to Members;

 

(iii)                               change
the fiscal year of the Company or make or modify any tax elections as the
Managing Member believes to be in the best interests of the Company and the
Members;

 

(iv)                              possess,
transfer or otherwise deal in, and exercise all rights, powers, privileges and
other incidents of ownership or possession with respect to, securities or other
property held or owned by the Company, including but not limited to conducting
and managing the operations of the subsidiaries of the Company;

 

(v)                                 approve
any change of the location of the principal place of business of the Company;

 

(vi)                              open,
conduct and close checking, savings, custodial and other accounts on behalf of
the Company in such banks or other financial institutions as the Managing
Member may select from time to time;

 

13

 

(vii)                           negotiate,
enter into, execute and exercise the Company’s rights under any and all
contracts necessary, desirable or convenient with respect to the business and
affairs of the Company;

 

(viii)                        execute
any notifications, statements, reports, returns, registrations or other filings
that are necessary or desirable to be filed with any local, state or federal
agency, commission or authority, including without limitation any registration
of securities with any state or federal securities commission, and appear
before such agency, commission or authority on behalf of the Company;

 

(ix)                                purchase
or bear the cost of any insurance covering the potential liabilities of the
Company, the Members, the Managing Member or any officer or employee of the
Company, and any other Person acting on behalf of the Company;

 

(x)                                   commence,
defend or settle litigation pertaining to the Company, its business or assets,
provided that the Company is not to bear the expenses of any litigation brought
against any Member or the Managing Member acting in that capacity, any officer
or employee of the Company or any other Person acting on behalf of the Company
except as permitted by this Agreement;

 

(xi)                                employ
accountants, attorneys, contractors, brokers, investment managers, engineers,
consultants, agents or other Persons, firms, corporations or entities on such
terms and for such compensation as it determines is proper, including without
limitation Persons who may be Members or Affiliates, or who perform services
for, or have business, financial, family or other relationships with, any
Member, the Managing Member or any officer or employee of the Company; and

 

(xii)                             enter
into, make, perform and terminate such contracts, agreements and other undertakings
as the Managing Member may determine to be necessary, advisable or incidental
to the carrying out of the foregoing objects and purposes, and execute,
acknowledge and deliver such instruments, and do such other acts, as it may
deem necessary, advisable or incidental to the conduct of the business
contemplated by this Section 7.2(b).

 

(c)                                  Approval Required for Certain Actions.  Notwithstanding anything to the
contrary set forth in this Section 7.2, the Managing Member shall not
cause the Company to, and the Company shall not, take any of the following
actions without the approval or consent of the board of directors of OGE Enogex
GP:

 

(i)                                     effecting
any merger, consolidation or conversion or other change in limited liability
structure involving the Company;

 

(ii)                                  effecting
any sale or exchange of all or substantially all of the Company’s assets;

 

(iii)                               to
the fullest extent permitted by law, dissolving or liquidating the Company;

 

14

 

(iv)                              creating
or causing to exist any consensual restriction on the ability of the Company or
its subsidiaries to make distributions, pay any indebtedness, make loans or
advances or transfer assets to its Members;

 

(v)                                 settling
or compromising any claim, dispute or litigation directly against, or otherwise
relating to indemnification by the Company of, any of the directors or officers
of OGE Enogex GP; or

 

(vi)                              issuing
additional Membership Interests.

 

(d)                                 Conflicts Committee Approval.  Without the approval or consent of the Conflicts
Committee:

 

(i)                                     the
Members may not amend this Agreement; and

 

(ii)                                  no
agreement with respect to the purchase or other acquisition by OGE Enogex
Partners, its subsidiaries or any Person controlled by OGE Enogex Partners of
any Class B Membership Interests shall be executed or delivered by or on
behalf of the Company.

 

7.3                                 Officers.

 

(a)                                  The
Company may have such officers as are appointed or elected, from time to time,
by the Managing Member.  The officers
shall not be “managers” of the Company within the meaning of the Act.

 

(b)                                 Any
such officers of the Company shall have the authority, responsibilities and
duties as are customary for officers holding similar positions with respect to
businesses conducted in corporate form and such additional authority,
responsibilities and duties as the Managing Member may delegate, from time to
time, to the officers.  From time to
time, the Managing Member may establish, increase, reduce or otherwise modify
responsibilities for the officers or may create or eliminate offices as the
Managing Member considers appropriate. 
Any number of the offices may be held by the same Person.  Each officer will hold office until his or
her successor is appointed or elected or until his or her earlier resignation
or removal.  Any officer may be removed
at any time by the Managing Member, and any officer may resign at any time upon
written notice to the Managing Member. 
In addition to obligations imposed by other provisions of this
Agreement, each officer will devote to the Company such time as is reasonably
necessary to carry out the business of the Company in order to accomplish its
purposes.

 

(c)                                  The
Company may grant powers of attorney or other authority as appropriate to
establish and evidence the authority of the officers and other Persons.

 

(d)                                 Solely
for purposes of the execution and delivery of contracts, agreements and other
documents to be entered into by the Company in connection with its obtaining
title to or ownership or possession of real property, such officers shall be
deemed “managers” of the Company that may execute and deliver such documents on
behalf of the Company; provided, however, that such officers shall not be “managers”
of the Company within the meaning of Section 18-101(10) of the Act.

 

15

 

7.4                                 Duties of Officers.  Except as otherwise specifically provided in
this Agreement, the duties and obligations owed to the Company and to the
Members by the officers of the Company shall be the same as the respective duties
and obligations owed to a corporation organized under the Delaware General
Corporation Law and its stockholders by its officers.

 

7.5                                 Indemnification.

 

(a)                                  To
the fullest extent permitted by Law but subject to the limitations expressly
provided in this Agreement, each Indemnitee (as defined below) shall be
indemnified and held harmless by the Company from and against any and all
losses, claims, damages, liabilities (joint or several), expenses (including
reasonable legal fees and expenses), judgments, fines, penalties, interest,
settlements and other amounts arising from any and all claims, demands,
actions, suits or proceedings, whether civil, criminal, administrative or
investigative, in which any such Person may be involved, or is threatened to be
involved, as a party or otherwise, by reason of such Person’s status as (i) the
Managing Member, (ii) a present or former Member, (iii) a present or
former officer of the Company, or (iv) a Person serving at the request of
the Company in a similar capacity as that referred to in the immediately
preceding clauses (i) or (iii), provided, that the Person described in the
immediately preceding clauses (i), (ii), (iii) or (iv) (“Indemnitee”)
shall not be indemnified and held harmless if there has been a final and non-appealable
judgment entered by a court of competent jurisdiction determining that, in
respect of the matter for which the Indemnitee is seeking indemnification
pursuant to this Section 7.5, the Indemnitee acted in bad faith or engaged
in fraud, willful misconduct or, in the case of a criminal matter, acted with
knowledge that the Indemnitee’s conduct was unlawful.  Any indemnification pursuant to this Section 7.5
shall be made only out of the assets of the Company.

 

(b)                                 To
the fullest extent permitted by Law, expenses (including reasonable attorney’s
fees and expenses) incurred by an Indemnitee who is indemnified pursuant to Section 7.5(a) in
defending any claim, demand, action, suit or proceeding shall, from time to
time, be advanced by the Company prior to the final disposition of such claim,
demand, action, suit or proceeding upon receipt by the Company of an
undertaking by or on behalf of the Indemnitee to repay such amount if it shall
be determined that the Indemnitee is not entitled to be indemnified as
authorized in this Section 7.5.

 

(c)                                  The
indemnification provided by this Section 7.5 shall be in addition to any
other rights to which an Indemnitee may be entitled under any agreement, as a
matter of Law or otherwise, both as to actions in the Indemnitee’s capacity as
an Indemnitee and as to actions in any other capacity, and shall continue as to
an Indemnitee who has ceased to serve in such capacity.

 

(d)                                 The
Company may purchase and maintain, or reimburse Affiliates for the cost of
purchasing and maintaining, insurance, on behalf of the Managing Member, the
officers and such other Persons as the Managing Member shall determine, against
any liability that may be asserted against or expense that may be incurred by
such Person in connection with the Company’s activities, regardless of whether
the Company would have the power to indemnify such Person against such
liability under the provisions of this Agreement.

 

16

 

(e)                                  For
purposes of this Section 7.5, the Company shall be deemed to have
requested an Indemnitee to serve as fiduciary of an employee benefit plan
whenever the performance by the Indemnitee of such Indemnitee’s duties to the
Company also imposes duties on, or otherwise involves services by, the Indemnitee
to the plan or participants or beneficiaries of the plan; excise taxes assessed
on an Indemnitee with respect to an employee benefit plan pursuant to
applicable Law shall constitute “fines” within the meaning of Section 7.5(a);
and action taken or omitted by the Indemnitee with respect to an employee
benefit plan in the performance of such Indemnitee’s duties for a purpose
reasonably believed by such Indemnitee to be in the interest of the
participants and beneficiaries of the plan shall be deemed to be for a purpose
which is in, or not opposed to, the best interests of the Company.

 

(f)                                    In
no event may an Indemnitee subject any Members of the Company to personal
liability by reason of the indemnification provisions of this Agreement.

 

(g)                                 An
Indemnitee shall not be denied indemnification in whole or in part under this Section 7.5
because the Indemnitee had an interest in the transaction with respect to which
the indemnification applies if the transaction was otherwise permitted by the
terms of this Agreement.

 

(h)                                 The
provisions of this Section 7.5 are for the benefit of the Indemnitees,
their heirs, successors, assigns and administrators and shall not be deemed to
create any rights for the benefit of any other Persons.

 

(i)                                     No
amendment, modification or repeal of this Section 7.5 or any provision
hereof shall in any manner terminate, reduce or impair either the right of any
past, present or future Indemnitee to be indemnified by the Company or the
obligation of the Company to indemnify any such Indemnitee under and in
accordance with the provisions of this Section 7.5 as in effect
immediately prior to such amendment, modification or repeal with respect to
claims arising from or relating to matters occurring, in whole or in part,
prior to such amendment, modification or repeal, regardless of when such claims
may arise or be asserted, and such Person became an Indemnitee hereunder prior
to such amendment, modification or repeal.

 

(j)                                     THE
PROVISIONS OF THE INDEMNIFICATION PROVIDED IN THIS SECTION 7.5 ARE
INTENDED BY THE PARTIES TO APPLY EVEN IF SUCH PROVISIONS HAVE THE EFFECT OF
EXCULPATING THE INDEMNITEE FROM LEGAL RESPONSIBILITY FOR THE CONSEQUENCES OF
SUCH PERSON’S NEGLIGENCE, FAULT OR OTHER CONDUCT.

 

7.6                                 Liability of Indemnitees.

 

(a)                                  Notwithstanding
anything to the contrary set forth in this Agreement, no Indemnitee shall be
liable for monetary damages to the Company, the Members, the Managing Member or
any other Person for losses sustained or liabilities incurred as a result of
any act or omission of an Indemnitee unless there has been a final and
non-appealable judgment entered in a court of competent jurisdiction
determining that, in respect of the matter in question, the Indemnitee acted in
bad faith or engaged in fraud, willful misconduct or, in the case of a criminal
matter, acted with knowledge that the Indemnitee’s conduct was criminal.

 

17

 

(b)                                 Subject
to its obligations and duties as set forth in this Article 7, the Managing
Member may exercise any of the powers granted to it by this Agreement and
perform any of the duties imposed upon it hereunder either directly or by or
through the Company’s officers or agents, and the Managing Member shall not be
responsible for any misconduct or negligence on the part of any such officer or
agent appointed by the Managing Member in good faith.

 

(c)                                  Any
amendment, modification or repeal of this Section 7.6 shall be prospective
only and shall not in any way affect the limitations on liability under this Section 7.6
as in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when such
claims may be asserted.

 

ARTICLE 8.  ACCOUNTING METHOD, PERIOD, RECORDS, REPORTS

AND BANK ACCOUNTS

 

8.1                                 Accounting Method.  The books and records of account of the
Company shall be maintained in accordance with the accrual method of
accounting.

 

8.2                                 Accounting Period.   The Company’s accounting period shall be the
fiscal year.

 

8.3                                 Books and Records.  At the expense of the Company, the Managing
Member shall maintain or cause to be maintained complete and accurate books and
records of the Company, supporting documentation of the transactions with
respect to the conduct of the Company’s business and minutes of the proceedings
of the Members and any other books and records that are required to be
maintained by applicable Law.

 

8.4                                 Reports.  The Managing Member shall cause to be prepared and delivered to
each Member such reports, forecasts, studies, budgets and other information as
the Members may reasonably request from time to time.

 

8.5                                 Inspection.  The books and records of account of the
Company shall be maintained at the principal place of business of the Company
or such other location as shall be determined by the Managing Member and shall be open to inspection by the
Members at all reasonable times during any Business Day.

 

8.6                                 Bank Accounts.  Funds of the Company shall be deposited in
such banks or other depositories as shall be designated from time to time by
the Managing Member.  All withdrawals from any such depository
shall be made only as authorized by the Managing Member and shall be made only by check, wire transfer,
debit memorandum or other written instruction.

 

ARTICLE 9.  TAX MATTERS

 

9.1                                 Tax Returns.  The Managing Member shall cause to be
prepared and filed all necessary federal and state income tax returns for the
Company, including making the elections described in Section 9.2.  Each Member shall furnish to the Managing
Member all pertinent information in its possession relating to Company
operations that is necessary to enable the Company’s income tax returns to be
prepared and filed.

 

18

 

9.2                                 Tax Elections.

 

(a)                                  The
Company shall make the following elections on the appropriate tax returns:

 

(i)                                     to
adopt a fiscal year ending on December 31 of each year;

 

(ii)                                  to
adopt the accrual method of accounting and to keep the Company’s books and
records on the income-tax method;

 

(iii)                               to
adjust the basis of Company properties pursuant to section 754 of the Code; and

 

(iv)                              any
other election the Managing Member may deem appropriate and in the best
interests of the Members.

 

(b)                                 Neither
the Company nor any Member may make an election for the Company to be excluded
from the application of the provisions of subchapter K of chapter 1 of subtitle
A of the Code or any similar provisions of applicable state Law.

 

9.3                                 Tax Matters Partner.  Enogex Operating shall be the “tax matters
partner” of the Company pursuant to section 6231(a)(7) of the Code.  The tax matters partner shall take such
action as may be necessary to cause each Member to become a “notice partner”
within the meaning of section 6223 of the Code. 
The tax matters partner shall inform each Member of all significant
matters that may come to its attention in its capacity as tax matters partner
by giving notice on or before the fifth Business Day after becoming aware of
the matter and, within that time, shall forward to each Member copies of all
significant written communications it may receive in that capacity.

 

ARTICLE 10.   DISSOLUTION, WINDING UP AND TERMINATION

 

10.1        Dissolution.

 

(a)                                  The
Company shall dissolve and its affairs shall be wound up on the first to occur
of the following events (each a “Dissolution Event”):

 

(i)                                     the
unanimous written consent of all of the Members and approval or consent of the
board of directors of OGE Enogex GP;

 

(ii)                                  the
entry of a decree of judicial dissolution of the Company under Section 18-802
of the Act;

 

(iii)                               at
any time there are no Members of the Company, unless the Company is continued
in accordance with the Act or this Agreement.

 

(b)                                 No
other event shall cause a dissolution of the Company.

 

19

 

(c)                                  Upon
the occurrence of any event that causes there to be no Members of the Company,
to the fullest extent permitted by Law, the personal representative of the last
remaining Member is hereby authorized to, and shall, within 90 Days after the
occurrence of the event that terminated the continued membership of such Member
in the Company, agree in writing (i) to continue the Company and (ii) to
the admission of the personal representative or its nominee or designee, as the
case may be, as a substitute Member of the Company, effective as of the
occurrence of the event that terminated the continued membership of such Member
in the Company.

 

(d)                                 Notwithstanding
any other provision of this Agreement, the Bankruptcy of a Member shall not
cause such Member to cease to be a member of the Company and, upon the
occurrence of such an event, the Company shall continue without dissolution.

 

10.2                         Winding-Up and Termination.

 

(a)                                  On
the occurrence of a Dissolution Event, the Managing Member shall select one or
more Persons to act as liquidator.  The
liquidator shall proceed diligently to wind up the affairs of the Company and
make final distributions as provided herein and in the Act.  The costs of winding up shall be borne as a
Company expense. Until final distribution, the liquidator shall continue to
operate the Company with all of the power and authority of the Managing
Member.  The steps to be accomplished by
the liquidator are as follows:

 

(i)                                     as
promptly as possible after dissolution and again after final winding up, the
liquidator shall cause a proper accounting to be made by a recognized firm of
certified public accountants of the Company’s assets, liabilities and
operations through the last calendar day of the month in which the dissolution
occurs or the final winding up is completed, as applicable;

 

(ii)                                  the
liquidator shall discharge from Company funds all of the debts, liabilities and
obligations of the Company or otherwise make adequate provision for payment and
discharge thereof (including the establishment of a cash escrow fund for
contingent, conditional or unmatured liabilities in such amount and for such
term as the liquidator may reasonably determine); and

 

(iii)                               all remaining assets of the Company shall be
distributed to the Members as follows: (A) the liquidator may sell any or
all Company property, including to Members, and any resulting gain or loss from
each sale shall be computed and allocated to the capital accounts of the
Members; (B) with respect to all Company property that has not been sold,
the fair market value of that property shall be determined and the capital
accounts of the Members shall be adjusted to reflect the manner in which the
unrealized income, gain, loss and deduction inherent in property that has not
been reflected in the capital accounts previously would be allocated among the
Members if there were a taxable disposition of that property for the fair
market value of that property on the date of distribution; and (C) Company
property shall be distributed among the Members in accordance with the positive
capital account balances of the Members, as determined after taking into
account all capital account adjustments for the taxable year of the Company
during which the liquidation of the Company occurs (other than those made by
reason of this clause (iii)); and those distributions shall be made by the end
of the 

 

20

 

taxable
year of the Company during which the liquidation of the Company occurs (or, if
later, 90 Days after the date of the liquidation).

 

(b)                                 The
distribution of cash or property to a Member in accordance with the provisions
of this Section 10.2 constitutes a complete return to the Member of its
Capital Contributions and a complete distribution to the Member of its share of
all the Company’s property and constitutes a compromise to which all Members
have consented within the meaning of Section 18-502(b) of the
Act.  No Member shall be required to make
any Capital Contribution to the Company to enable the Company to make the
distributions described in this Section 10.2.

 

(c)                                  On
completion of such final distribution, the liquidator shall file a Certificate
of Cancellation with the Secretary of State of the State of Delaware and take
such other actions as may be necessary to terminate the existence of the
Company.

 

ARTICLE 11.  MERGER

 

11.1                           Authority. 
The Company may merge or consolidate with one or more “other business
entities” (as defined in Section 18-209(a) of the Act), pursuant to a
written agreement of merger or consolidation (“Merger Agreement”) in accordance
with this Article 11.

 

11.2                           Procedure for Merger or Consolidation.  The merger or consolidation of the Company
pursuant to this Article 12 requires the prior approval or consent of Class A
Members holding a majority of the Class A Membership Interests and the
board of directors of OGE Enogex GP. 
Upon such approval, the Merger Agreement shall set forth:

 

(a)                                  the
names and jurisdictions of formation or organization of each of the business
entities proposing to merge or consolidate;

 

(b)                                 the
name and jurisdiction of formation or organization of the business entity that
is to survive the proposed merger or consolidation (“Surviving Business Entity”);

 

(c)                                  the
terms and conditions of the proposed merger or consolidation;

 

(d)                                 the
manner and basis of exchanging or converting the equity securities of each
constituent business entity for, or into, cash, property or rights or
securities of, or interests in, the Surviving Business Entity; and (i) if
any general or limited partnership or limited liability company interests,
rights, securities or obligations of any constituent business entity are not to
be exchanged or converted solely for, or into, cash, property or rights or
securities of, or interests in, the Surviving Business Entity, the cash,
property or rights or securities of, or interests in, any general or limited
partnership, limited liability company, corporation, trust or other entity
(other than the Surviving Business Entity) which the holders of such interests,
rights, securities or obligations of the constituent business entity are to
receive, if any, in exchange for, or upon conversion of, their interests,
rights, securities or obligations and (ii) in the case of securities
represented by certificates, upon the surrender of such certificates, which
cash, property or rights or securities of, or interests in, the Surviving
Business Entity or any general or limited partnership, limited liability
company, corporation, trust or other entity (other than the Surviving Business
Entity), or evidences thereof, are to be delivered, if any;

 

21

 

(e)                                  a
statement of any changes in the constituent documents or the adoption of new
constituent documents (the articles or certificate of incorporation, articles
or certificate of trust, declaration of trust, certificate or agreement of
limited partnership or limited liability company or other similar charter or
governing document) of the Surviving Business Entity to be effected by such
merger or consolidation;

 

(f)                                    the
effective time of the merger or consolidation, which may be the date of the
filing of the certificate of merger pursuant to Section 11.3 or a later
date specified in or determinable in accordance with the Merger Agreement
(provided, that if the effective time of the merger or consolidation is to be
later than the date of the filing of the certificate of merger or
consolidation, the effective time shall be fixed no later than the time of the
filing of the certificate of merger or consolidation and stated therein); and

 

(g)                                 such
other provisions with respect to the proposed merger or consolidation as are
deemed necessary or appropriate by the Managing Member or the board of directors
of OGE Enogex GP.

 

11.3                         Certificate of Merger or Consolidation.  Upon the required approval by the Class A
Members of a Merger Agreement and the board of directors of OGE Enogex GP, a
certificate of merger or consolidation shall be executed and filed with the
Secretary of State of the State of Delaware in conformity with the requirements
of the Act.

 

11.4                         Effect of Merger or Consolidation.

 

(a)                                  At
the effective time of the merger or consolidation:

 

(i)                                     all
of the rights, privileges and powers of each of the business entities that has
merged or consolidated, and all property, real, personal and mixed, and all
debts due to any of those business entities and all other things and causes of
action belonging to each of those business entities shall be vested in the
Surviving Business Entity and after the merger or consolidation shall be the
property of the Surviving Business Entity to the extent they were property of
each constituent business entity;

 

(ii)                                  the
title to any real property vested by deed or otherwise in any of those
constituent business entities shall not revert and is not in any way impaired
because of the merger or consolidation;

 

(iii)                               all
rights of creditors and all liens on or security interest in property of any of
those constituent business entities shall be preserved unimpaired; and

 

(iv)                              all
debts, liabilities and duties of those constituent business entities shall
attach to the Surviving Business Entity, and may be enforced against it to the
same extent as if the debts, liabilities and duties had been incurred or
contracted by it.

 

(b)                                 A
merger or consolidation effected pursuant to this Article 12 shall not
require the Company (if it is not the Surviving Business Entity) to wind up its
affairs, pay its liabilities or distribute its assets as required under Article 11
of this Agreement or under the applicable provisions of the Act.

 

22

 

ARTICLE 12.  GENERAL PROVISIONS

 

12.1                           Notices. 
Except as expressly set forth to the contrary in this Agreement, all
notices, requests or consents provided for or permitted to be given under this
Agreement must be in writing and must be delivered to the recipient in person,
by courier or mail or by facsimile or other electronic transmission and a
notice, request or consent given under this Agreement is effective on receipt
by the Person to receive it; provided, however, that a facsimile or other
electronic transmission that is transmitted after the normal business hours of
the recipient shall be deemed effective on the next Business Day.  All notices, requests and consents to be sent
to a Member must be sent to or made at the addresses given for that Member as
that Member may specify by notice to the other Members.  Any notice, request or consent to the Company
must be given to the Managing Member. Whenever any notice is required to be
given by applicable Law, the Certificates or this Agreement, a written waiver
thereof, signed by the Person entitled to notice, whether before or after the
time stated therein, shall be deemed equivalent to the giving of such
notice.  Whenever any notice is required
to be given by Law, the Certificates or this Agreement, a written waiver
thereof, signed by the Person entitled to notice, whether before or after the
time stated therein, shall be deemed equivalent to the giving of such notice.

 

12.2                           Entire Agreement; Supersedure.  This Agreement constitutes the
entire agreement of the Members and their respective Affiliates relating to the
subject matter hereof and supersedes all prior contracts or agreements with
respect to such subject matter, whether oral or written.

 

12.3                           Effect of Waiver or Consent.  Except as provided in this Agreement,
a waiver or consent, express or implied, to or of any breach or default by any
Person in the performance by that Person of its obligations with respect to the
Company is not a consent or waiver to or of any other breach or default in the
performance by that Person of the same or any other obligations of that Person
with respect to the Company.  Except as
provided in this Agreement, to the fullest extent permitted by law, failure on
the part of a Person to complain of any act of any Person or to declare any
Person in default with respect to the Company, irrespective of how long that
failure continues, does not constitute a waiver by that Person of its rights
with respect to that default until the applicable statute-of-limitations period
has run.

 

12.4                           Amendment or Restatement.  This Agreement may be amended or
restated only by a written instrument executed by Members holding at
least 80% of the Membership Interests and the approval or consent of the
Conflicts Committee.

 

12.5                           Binding Effect.  This Agreement is binding on and shall inure
to the benefit of the Members and their respective heirs, legal
representatives, successors and assigns.

 

12.6                           Governing Law; Severability.  THIS
AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF DELAWARE, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE THAT
MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF
ANOTHER JURISDICTION.  In the event of a
direct conflict between the provisions of this Agreement and any mandatory,
non-waivable provision of the Act, such provision of the Act shall
control.  If any provision of the Act
provides that it may be varied or 

 

23

 

superseded
in the limited liability company agreement (or otherwise by agreement of the
members or managers of a limited liability company), such provision shall be
deemed varied or superseded if this Agreement contains a provision addressing
the same issue or subject matter. If any provision of this Agreement or the
application thereof to any Person or circumstance is held invalid or
unenforceable to any extent, (a) the remainder of this Agreement and the
application of that provision to other Persons or circumstances is not affected
thereby and that provision shall be enforced to the greatest extent permitted
by Law, and (b) the Members or the Managing Member (as the case may be)
shall negotiate in good faith to replace that provision with a new provision
that is valid and enforceable and that puts the Members in substantially the
same economic, business and legal position as they would have been in if the
original provision had been valid and enforceable.

 

12.7                           Further Assurances.  In connection with this Agreement and the
transactions contemplated hereby, each Member shall execute and deliver any
additional documents and instruments and perform any additional acts that may
be necessary or appropriate to effectuate and perform the provisions of this
Agreement and those transactions.

 

12.8                           Offset.  Whenever the Company is to pay any sum to any
Member, any amounts that a Member owes the Company may be deducted from that
sum before payment.

 

12.9                           Counterparts.  This Agreement may be executed in any number
of counterparts with the same effect as if all signing parties had signed the
same document. All counterparts shall be construed together and constitute the
same instrument.

 

12.10                     Headings.  The headings in this Agreement are inserted
for convenience only and are in no way intended to describe, interpret, define
or limit the scope, extent or intent of this Agreement or any provision hereof.

 

[Signature Page Follows]

 

24

 

IN WITNESS
WHEREOF, the Members have executed this Agreement as of the date first set
forth above.

 

	
  OGE ENOGEX HOLDINGS LLC,  a

  Delaware limited liability company

  	
  ENOGEX OPERATING LLC,  a Delaware

  limited liability company

  
	
   

  	
   

  
	
  By: OGE Energy Corp., its
  sole member

  	
  By:

  	
  OGE Enogex Partners L.P., its
  sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
  OGE Enogex GP, LLC, its
  general 

  
	
  Name:

  	
   

  	
   

  	
   

  	
  partner

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
							

 

 

EXHIBIT A

 

Sharing Ratios

 

	
  Member

  	
   

  	
  Sharing Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OGE Enogex Holdings LLC

  c/o OGE Energy Corp.

  321 North Harvey, P.O. Box 321

  Oklahoma City, Oklahoma 73101

  	
   

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Enogex Operating LLC

  c/o OGE Enogex Partners L.P.

  600 Central Park Two, 515 Central Park Drive

  Oklahoma City, Oklahoma 73105

  	
   

  	
  25

  	
  %Exhibit 10.13

 

FORM OF

SECOND AMENDED AND RESTATED

REVOLVING CREDIT AND INVESTMENT AGREEMENT

 

This Second Amended and Restated Revolving
Credit and Investment Agreement (“Agreement”)
dated as of [          ],
2008 between OGE Energy Corp., an Oklahoma corporation (“OGE Energy Corp.” or “Lender”), and Enogex LLC, a Delaware
limited liability company (“Enogex”
or “Borrower”).

 

RECITALS

 

1.                                       Enogex, Inc.,
an Oklahoma corporation and predecessor of Enogex (“Original Subsidiary”), was a direct subsidiary of OGE Energy
Corp. and (i) from time to time required advances of funds to enable it to
meet temporary working capital needs and operating expenses and (ii) from
time to time had excess funds available over what is required for its working
capital needs and operating expenses.

 

2.                                       Based on the
fact that (i) OGE Energy Corp. had access to funds at a cost lower than
that available to Original Subsidiary and (ii) OGE Energy Corp. had
available investment alternatives which would receive greater returns than
those available to Original Subsidiary, OGE Energy Corp. and Original
Subsidiary entered into a certain Revolving Credit and Investment Agreement
dated as of December 31, 1996, which agreement was amended and restated in
its entirety on August 14, 2006 (collectively, the “Original Agreement”).

 

3.                                       Contemporaneously
with the execution of this Agreement, Original Subsidiary merged with and into
Enogex, which at the time of such merger was a Delaware corporation and which
subsequently converted into a limited liability company.

 

4.                                       As (i) OGE
Energy Corp. continues to be willing to make advances to Enogex, which advances
may be at a cost lower than that otherwise available to Enogex and (ii) OGE
Energy Corp. continues to have available investment alternatives which would
receive greater returns than those otherwise available to Borrower, OGE Energy
Corp. and Enogex desire to enter into this Agreement to amend and restate the
Original Agreement, in its entirety, on the terms and conditions set forth
herein.

 

NOW THEREFORE, in consideration of the
premises set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

AGREEMENT

 

1.                                       The
Advances; Assumption of Obligations.

 

(a)                                  As evidenced by the
Contract Demand Note executed by Borrower in favor of Lender (in the form
attached hereto as Exhibit A (the “Note”)),
and subject to the terms and conditions set forth herein, Borrower may from
time to time prior to the Termination Date (as defined below) request, and OGE
Energy Corp., in its sole and absolute discretion, may prior to the Termination
Date agree to make and make, advances (the “Advances”)
to Borrower in an aggregate principal amount not to exceed at any time outstanding
the Maximum Loan Limit (as hereinafter defined). For purposes hereof, “Maximum Loan Limit” shall mean, a dollar
amount equal to $100,000,000; provided,
that Enogex may request to increase or reduce the Maximum Loan Limit (but not
to an amount less than the then outstanding principal balance of all Advances)
by notice given to OGE Energy Corp. not less than three working days prior to
the effective date of the requested change and, if such request is to effect an
increase thereof, OGE Energy may (but shall not be obligated to) agree to any
such increase, in its sole and absolute discretion. Any reduction in the
Maximum Loan Limit 

 

 

shall be
permanent unless an increase thereof shall subsequently be approved by OGE
Energy Corp. as aforesaid. Such Maximum Loan Limit, as revised from time to
time in accordance herewith, shall be recorded by OGE Energy Corp. on its
ledger along with the other information required by paragraph 4 below. Within the limits of such amount and
subject to the other terms and conditions set forth herein and in the Note,
Enogex may borrow, repay and reborrow on demand under this paragraph 1; provided, that it is acknowledged and
agreed that notwithstanding anything contained herein to the contrary, the
making of any such Advance shall be in Lender’s sole and absolute discretion of
Lender and Lender shall have no liability hereunder for the failure or refusal
to make any such Advance requested hereunder. Unless otherwise agreed to by
Lender, Borrower shall give written notice of each requested Advance no later
than 10:00 a.m. (New York time) on the third Business Day (as defined in
the Lender’s Senior Working Capital Facility referred to below) prior to the
proposed borrowing date, which notice shall set forth the proposed amount (which
must be in a minimum amount of $5,000,000 and increments of $1,000,000 in
excess thereof) and date of borrowing, the proposed interest rate (either the
Floating Rate or the Eurodollar Rate and the requested Interest Period (as
defined below) for such Advance. Each Advance shall be made pursuant to
pre-authorized instructions or as OGE Energy Corp. and Enogex shall otherwise
agree, subject to the requirements of this paragraph 1.
Changes to the Floating Rate shall be effective immediately with or without
notice by Lender to Borrower.

 

Borrower acknowledges and agrees that Lender
intends to fund such Advances primarily from borrowings under and pursuant to
Lender’s Amended and Restated Credit Agreement dated as of December 6,
2006 among Lender, certain financial institutions parties thereto as credit
providers and Wachovia Bank, National Association, as administrative agent
(together with any successor or replacement facility, in each case, as the same
may be amended, restated, supplemented or otherwise modified from time to time,
the “Lender’s Senior Working Capital
Facility”; capitalized terms used and not otherwise defined herein
or in the Note shall have the meanings ascribed to them in the Lender’s Senior
Working Capital Facility; provided that if such term shall not be defined in
any successor or replacement facility agreement, such term shall have the
meaning ascribed to such other corresponding replacement term used in such
successor or replacement agreement). As such, the availability of funds, the
requested interest rate or interest rate options, Interest Periods and
prepayment terms shall be subject to the restrictions set forth in and
availability thereof under such agreement, unless otherwise agreed to by
Lender.

 

(b)                                 Enogex hereby assumes,
reaffirms and agrees to perform all obligations and liabilities of the Original
Subsidiary under the Original Agreement and the Contract Note executed in
connection therewith (and as defined thereunder) (in each case, with respect to
periods prior to the date of this Agreement) as if Enogex was originally a
party thereto in lieu of the Original Subsidiary. In connection therewith,
Enogex further agrees that Lender shall be entitled to all rights and remedies
against Enogex, including for and in respect of any claim, loss, cost, expense,
indemnity or other amounts heretofore, now or hereafter owing by Original
Subsidiary or in respect of any cause of action or suit against Original
Subsidiary, in either case, arising or existing under or in connection with the
Original Agreement or such Contract Note (in each case, with respect to periods
prior to the date of this Agreement) or the transactions contemplated thereby.
In furtherance thereof, any Advances outstanding under the Original Agreement
and the corresponding Contract Note as of the date of this Agreement shall be
deemed to be outstanding under and pursuant to this Agreement and from and
after the date hereof shall accrue interest at the rates set forth herein (as
shall be agreed to by Lender prior to the date hereof).

 

2.                                       Interest on Advances; Selection of Interest Periods;
Conversion and Continuation

 

(a)                                  Borrower shall pay
interest on the unpaid principal amount of each Advance made by Lender from the
date of such Advance until such principal amount shall be paid in full at the
rate or rates offered from time to time by Lender, calculated on a 360-day year
basis (or in the case of Floating 

 

2

 

Rate Advances
(as defined below), a 365 or 366-day year, as applicable), with such per annum
rate approximating the greater of (x) Lender’s cost of funds for an
equivalent advance under the Lender’s Senior Working Capital Facility, plus 0.50% and (y) Borrower’s cost of
funds for an equivalent advance under Borrower’s Credit Agreement dated as of [     ],
2008 (together with any replacements or refinancings thereof, in each case, as
amended, restated, supplemented or otherwise modified from time to time, the “Borrower Credit Facility”) among Borrower,
Wachovia Bank, National Association, as administrative agent, The Royal Bank of
Scotland PLC, as syndication agent, and JP Morgan Chase Bank, N.A., Mizuho
Corporate Bank, Ltd. and Union Bank of California, as co-documentation
agents (such rates to be notified by Lender to Borrower at the time of such
advance and on each change in such rate). Accrued interest shall be payable, in
arrears, (i) in the case of Advances bearing interest at the Floating Rate
(each such Advance being a “Floating Rate
Advance”), on the last day of each calendar quarter, (ii) in
the case of Advances bearing interest at the Eurodollar Rate (each such Advance
being a “Eurodollar Rate Advance”),
on the last day of any fixed interest accrual period selected therefor in
accordance with the terms hereof; provided that interest on any Interest Period
longer than three (3) months shall be payable on each three (3) month
anniversary of the commencement of such Interest Period, and (iii) in any
event, on the date of repayment of any such Advance. Upon the occurrence and
during the continuance of an Event of Default (as defined below), if so elected
by Lender by the giving of written notice to Borrower (other than an Event of
Default set forth in paragraph 8(a)(i) or
8(b), in which case,
automatically without election of the Lender or notice to Borrower), the per
annum rate of interest shall be increased to a per annum rate equal to two
percent (2.00%) plus the otherwise applicable rate and any and all fees which
are not paid when due shall bear interest at the rate of interest applicable to
Floating Rate Advances, plus 2.00%.

 

(b)                                 Assuming the
availability of (and subject to the limitations on) the Eurodollar Rate under
the Lender’s Senior Working Capital Facility and so long as no Default or Event
of Default then exists or would result therefrom, Borrower may request, and
Lender in its sole discretion may make, Eurodollar Advances for fixed interest
periods (each being an “Interest Period”)
of 1, 2, 3 or, if agreed to by Lender, 6 or 9 months, which periods shall end
on but exclude the day which corresponds numerically to such date one, two,
three or, if agreed to by Lender, six or nine months thereafter; provided, however,
that if there is no such numerically corresponding day in such next, second,
third, sixth or ninth succeeding month or such other succeeding period, such
Interest Period shall end on the last Business Day of such next, second, third,
sixth or ninth succeeding month or such other succeeding period. If an Interest
Period would otherwise end on a day which is not a Business Day, such Interest
Period shall end on the next succeeding Business Day; provided, however,
that if said next succeeding Business Day falls in a new calendar month, such
Interest Period shall end on the immediately preceding Business Day. Without
limiting the foregoing, in no event may any Interest Period extend past the
stated expiration date of the Lender’s Senior Working Capital Facility nor may
there be more than two (2) Interest Periods outstanding at any time. Each
request for a Eurodollar Advance shall be delivered to Lender not later than
10:00 a.m. (New York time) on the third Business Day prior to the date of
the requested Advance, specifying:

 

(i)                                     the
requested date of such Advance, which date shall be a Business Day;

 

(ii)                                  the
aggregate amount of the requested Advance to be included in such Interest
Period (which shall be subject to the minimum denominations therefor as set
forth in the Lender’s Senior Working Capital Facility); and

 

(iii)                               the
duration of the Interest Period applicable thereto.

 

(c)                                  Each Floating Rate
Advance made hereunder shall continue as a Floating Rate Advance unless and
until such Floating Rate Advance is converted into Eurodollar Advances pursuant
to this paragraph 2(c) or
is repaid. Each Eurodollar Advance shall continue as a Eurodollar Advance until
the end of the then applicable Interest Period therefor, at which time such
Eurodollar Advance shall be 

 

3

 

automatically
converted into a Floating Rate Advance unless (x) such Eurodollar Advance
is or was repaid or (y) Borrower shall have given Lender a
Conversion/Continuation Notice (as defined below) requesting that (and in
respect of which Lender in its sole discretion shall have agreed that), at the
end of such Interest Period, such Eurodollar Advance be continued as a
Eurodollar Advance for the same or another Interest Period. Subject to the
other terms and conditions hereof, Borrower and Lender may agree, at Borrower’s
request, to convert all or any part of a Floating Rate Advance into a
Eurodollar Advance. Borrower shall make any such request by giving Lender
irrevocable written notice (a “Conversion/
Continuation Notice”) of each conversion of a Floating Rate Advance
into a Eurodollar Advance or continuation of a Eurodollar Advance not later
than 10:00 a.m. (New York time) on the third Business Day prior to the
date of the requested conversion or continuation, specifying:

 

(i)                                     the
requested date of such conversion or continuation, which date shall be a Business
Day;

 

(ii)                                  the
aggregate amount of the current Advance which is to be converted or continued
(which shall be subject to the minimum denominations therefor as set forth in
the Lender’s Senior Working Capital Facility); and

 

(iii)                               the
duration of the new Interest Period applicable thereto.

 

Lender, at its discretion, may terminate any Interest Period with
respect to any Eurodollar Advance prior to its scheduled expiration date if and
to the extent availability of the Eurodollar Rate is terminated or suspended
under the Lender’s Senior Working Capital Facility.

 

3.                                       Facility
Fee; Utilization Fee; Breakage Expenses; Increased Costs.

 

(a)                                  Borrower shall pay to
Lender on the last day of each calendar quarter and on the Termination Date, a
fee (the “Facility Fee”) on the
daily average amount of the Maximum Loan Limit at a per annum rate equivalent
to the corresponding fee, if any, required to be paid by Lender to its lenders
under and pursuant to its facility under the Lender’s Senior Working Capital
Facility, which fee shall be calculated on the basis of a 360 day year and
the actual number of days elapsed.

 

(b)                                 With regard to any
period in respect of which any Advances are outstanding hereunder and, in
respect of which, Lender, pursuant to the Lender’s Senior Working Capital
Facility, is required to pay a utilization surcharge, incremental interest
rate, fee or similar charge as a result of the aggregate borrowings under the
Lender’s Senior Working Capital Facility exceeding a specified level or
percentage of the aggregate facility under such facility (a “Utilization Fee”), then Borrower hereby
agrees to pay to Lender Borrower’s ratable portion of such utilization
surcharge, incremental interest rate, fee or similar charge, such share to be
based on the percentage that Borrower’s Advances hereunder bear to the
aggregate borrowings of Lender under the Lender’s Senior Working Capital
Facility. Such amounts shall be paid by Borrower within fifteen (15) days
after Lender’s written demand therefor (which demand shall set forth in
reasonable detail the calculation of such amounts owing by Borrower).

 

(c)                                  If any payment of a
Eurodollar Advance occurs on a date which is not the last day of the applicable
Interest Period, whether because of acceleration, prepayment or otherwise, or a
Eurodollar Advance is not made on the date specified by Borrower in a request
for borrowing or a Conversion/Continuation Notice for any reason other than
default by the lenders under the Lender’s Senior Working Capital Facility, or a
Eurodollar Advance is not prepaid on the date specified by Borrower for any
reason, Borrower hereby agrees to indemnify, pay and hold harmless Lender for
any actual out-of-pocket fees or expenses incurred by Lender as a result of
such prepayment, including, any breakage fees assessed by any Other Lender (as
defined below) upon the repayment of such amount under such agreement (or the
carrying expenses incurred by Lender pending its repayment of such amounts to
such Other Lender(s)).

 

4

 

(d)                                 If on or after the
date of this Agreement, the adoption of any law, rule or regulation or any
change in any such law, rule or regulation (including capital adequacy
guidelines) or in the interpretation or administration thereof, in each case,
by any governmental, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Lender or any lender
which provides Lender with funds to make or continue Advances hereunder (or any
applicable lending office of such other lender) (for purposes of this paragraph 3, any such other lenders,
any agent therefor or any applicable lending office thereof (including the
lenders under Lender’s Senior Working Capital Facility) shall be an “Other Lender”) with any request or
directive (whether or not having the force of law) of any such authority,
central bank or comparable agency:

 

(i)                                     subjects
Lender or any Other Lender to any Taxes (as defined below), or changes the
basis of taxation of payments (other than with respect to Excluded Taxes (as
defined below)) to any Lender or Other Lender in respect of its Eurodollar
Loans or participations therein;

 

(ii)                                  imposes
or increases or deems applicable any reserve, assessment, insurance charge,
special deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender or Other Lender (other than
reserves and assessments taken into account in determining the interest rate
applicable to Eurodollar Advances); or

 

(iii)                               otherwise
increases the cost to such Lender or Other Lender of making or maintaining its
Advances to Borrower or of making loans and advances to Lender to fund Advances
hereunder or reduces the return received by Lender or such Other Lender in
connection with such Advances, loans and advances,

 

then Borrower hereby agrees to pay to Lender Borrower’s ratable portion
of such amounts owing or losses or reductions in return incurred by Lender or
such Other Lender, such share to be based on the percentage that Borrower’s
Advances hereunder which are the subject of any of the foregoing provisions
bear to the total amount of fundings made or borrowed by Lender (including
under the Lender’s Senior Working Capital Facility) which are similarly
effected by such foregoing provisions. Such amounts shall be payable by
Borrower within fifteen (15) days after Lender’s written demand therefor
(which demand shall set forth in reasonable detail the calculation of such
amounts owing by Borrower).

 

(e)                                  If Lender is required
to reimburse, pay, indemnify or make-whole the agent, any Other Lender for any
other amounts under or pursuant to the Lender’s Senior Working Capital Facility
for or in respect of any act or omission of Borrower or resulting from or out
of loans or other advances made by such Other Lender to facilitate Lender’s
funding or maintaining any Advances hereunder, then Borrower hereby agrees to
pay to Lender Borrower’s ratable portion of such amounts required to paid by
Lender as reasonably determined by Lender to be attributable to Borrower or the
Advances made or continued hereunder within fifteen (15) days after Lender’s
written demand therefor (which demand shall set forth in reasonable detail the
calculation of such amounts owing by Borrower).

 

4. 
Repayment; Evidence of Indebtedness.  Unless a fixed date is expressly agreed for
repayment of principal of the Advances, Borrower shall repay the aggregate
unpaid principal of the Advances outstanding hereunder (as evidenced by Lender’s
ledger balance as provided in this paragraph 4)
on the earlier of the Termination Date or Lender’s demand therefor (with
sufficient notice in the latter case to allow Borrower to arrange for
alternative credit lines), at such place and by such means as Lender may
select; PROVIDED THAT NOTWITHSTANDING
ANYTHING CONTAINED HEREIN OR IN THE NOTE TO THE CONTRARY, ALL INTEREST,
PRINCIPAL AND OTHER AMOUNTS OWING BY BORROWER HEREUNDER AND UNDER THE NOTE
SHALL BE IMMEDIATELY DUE AND PAYABLE ON THE TERMINATION DATE and Borrower
agrees to pay such amounts on or prior to such date. For each Advance, the date
and amount thereof, the interest rate applicable to such Advance, the maturity
date, if any, the amount and date of each re-payment made in respect of such
Advance and the amount of interest accrued shall be evidenced by notation by
Lender on its ledgers 

 

5

 

(which may be
in spreadsheet or other electronic form) maintained for purposes of this
Agreement; provided, that the
failure to make such notation shall not affect the obligations of Borrower.
Notwithstanding anything contained herein to the contrary, Lender’s records
shall be presumed to be accurate and correct absent manifest error. OGE Energy
Corp. shall be the administrator of the arrangement under this Agreement and
has the duties set out herein. Enogex is the participant and has the duties set
out herein.

 

As used herein, “Termination Date” shall mean the earlier of (i) the
Stated Expiry Date (as defined below), (ii) the termination of this Agreement
at the discretion of Lender by giving notice thereof to Borrower, (iii) the
termination or expiration of the Lender’s Senior Working Capital Facility for
any reason (including as a result of any event of default thereunder or the
voluntary termination thereof by Lender) or (iv) the declaration of or
automatic occurrence of the Termination Date and the acceleration of the
amounts owing hereunder and under the Note pursuant to an Event of Default.

 

5                                           Prepayment.  Borrower may prepay the Advances made to it
in whole or in part at any time on notice given by Borrower to Lender no later
than 10:00 a.m. (New York time) on the date of repayment without premium
or penalty; provided, however, that if the Advances to be
prepaid bear interest at the Eurodollar Rate, any such prepayment on any date
other than the last day of the Interest Period therefor shall be subject to the
payment of breakage expenses as described in paragraph 2(c) above;
and provided, further, that any such voluntary
prepayment of any Eurodollar Rate Advance shall be in the minimum amount of
$1,000,000 and increments of $1,000,000 in excess thereof.

 

Notwithstanding anything contained herein to
the contrary, Borrower shall immediately repay the outstanding principal
balance of the Advances, without demand, presentment or notice, (x) if,
when and to the extent that the outstanding principal balance of the Advances
exceeds the Maximum Loan Limit then in effect (including upon the reduction
thereof as provided herein) and (y) on the Termination Date. If the
Advances to be prepaid bear interest at the Eurodollar Rate, any such
prepayment on any date other than the last day of the Interest Period therefor
shall be subject to the payment of breakage expenses as described in paragraph 2(c) above.

 

6.                                       Investments.  Enogex may advance funds to OGE Energy Corp.
for investment in a cash management or similar investment program at such times
as all indebtedness and accrued interest owed to Lender hereunder have been
repaid. Enogex will received income based on any one or a combination of the
following methods (as determined by OGE Energy Corp. in its sole discretion): (i) interest
income earned on OGE Energy Corp.’s advances to other borrowers in OGE Energy
Corp.’s cash concentration pool; (ii) interest income earned on
investments made pursuant to OGE Energy Corp.’s Investment Policy, as approved
by OGE Energy Corp.’s Board of Directors and attached hereto as Appendix A; in each case, less
expenses and fees incurred by OGE Energy Corp. in connection with such
investments. The amount and date of each deposit for investment, the amount and
date of each withdrawal or payment, the maturity date, if any, the interest
rate applicable to each investment and the amount of interest earnings accrued
shall be evidenced by notation by OGE Energy Corp. on its ledgers (which may be
in spreadsheet or other electronic form) maintained for purposes of this
Agreement; provided, that the
failure to make such notation shall not affect the amounts to which Borrower is
entitled. OGE Energy Corp. shall maintain a record in its ledger of the monthly
cash balance due to Borrower. OGE Energy Corp. shall maintain a record in its
ledger of the monthly cash balance of investments made by Borrower. OGE Energy
Corp.’s records shall be presumed to be accurate and correct absent manifest
error.

 

7.                                       Covenant of Borrower.  Borrower acknowledges and agrees that it has
been provided a copy of the Lender’s Senior Working Capital Facility and hereby
agrees, in its capacity as a subsidiary and/or affiliate of OGE (for so long as
Borrower meets the criteria as such as set forth in the Lender’s Senior Working
Capital Facility), to take and cause its subsidiaries and controlled affiliates
to take any such actions as are commercially reasonable to comply or facilitate
Lender’s compliance with all covenants

 

6

 

and
undertakings under such agreement (subject to permitted grace periods and
notices thereunder) which are applicable to Lender’s subsidiaries and/or
affiliates thereunder.

 

8.                                       Events
of Default.  As set forth above, it
is the intention of the parties hereto that the credit facility contemplated
herein be wholly-discretionary on the part of Lender and that all Advances and
other obligations hereunder be payable upon Lender’s demand. If, however, the
obligations of Borrower hereunder shall not be payable on demand pursuant to
the express provisions hereof, then upon the occurrence of any of the following
events (each an “Event of Default”),
Lender may, by notice to Borrower, declare the occurrence of the Termination
Date to have occurred whereupon, Lender’s agreement to make Advances shall be
immediately terminated and all Advances and all other amounts owing by Borrower
under this Agreement shall be immediately due and payable without presentment,
demand, protest or further notice of any kind, all of which are hereby
expressly waived by Borrower; provided,
however, that upon the occurrence
of an Event of Default of the type set forth in clause (b) or (e) below,
the Termination Date, the termination of Lender’s agreement to make Advances
and the acceleration of all indebtedness and obligations due hereunder shall
automatically occur without any presentment, demand, protest or notice of any
kind, all of which are hereby expressly waived by Borrower. Borrower agrees to
pay Lender on demand all costs and expenses, including without limitation
reasonable fees and expenses of counsel and breakage costs (as described in paragraphs 2 above and 11 below) incurred by Lender in connection
with the enforcement of this Agreement:

 

(a)                                  Borrower
shall fail to pay (i) the principal of any Advance on demand or when due
or (ii) accrued and unpaid interest or any other amounts owing hereunder
or under the Note, in each case, when due, which failure in the case of this
clause (ii) is not cured within ten (10) days;

 

(b)                                 Borrower
or any Material Subsidiary (as defined below) shall generally not pay its debts
as such debts become due, or shall admit in writing its inability to pay its
debts generally, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against Borrower or any
Material Subsidiary seeking to adjudicate it as bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, or
other similar official for it or for any substantial part of its property (and
in the case of any such involuntary action, such action is not dismissed within
thirty (30) days or an order for relief is entered (or consented to by Borrower
or any such Material Subsidiary) in connection with any such proceeding); or
Borrower or any Material Subsidiary shall take any corporate action to
authorize any of the actions set forth above in this subparagraph (b);

 

(c)                                  Any
event or condition occurs or exists which would or could be reasonably expected
to result in a material adverse change in the businesses, assets, condition or
properties of Borrower and its subsidiaries, taken as a whole, or Borrower’s
ability to perform under this Agreement or under the Note or Lender’s ability
to enforce of this Agreement or the Note;

 

(d)                                 Any
representation or warranty of Borrower hereunder shall be untrue in any
material respect when made or deemed made;

 

(e)                                  Any
“Change of Control” under and as defined in the Lender’s Senior Working Capital
Facility or Borrower Credit Facility; or Borrower or any of its Material
Subsidiaries shall make a transfer, sale or assignment of all or a
substantially portion of the consolidated assets of Borrower and its subsidiaries
to a person other than the Borrower or subsidiary of Borrower;

 

(f)                                    Borrower
shall fail to comply in any material respect with the provisions of paragraph 7 above and such failure
shall continue unremedied for thirty (30) days after the giving of notice
thereof by Lender to Borrower;

 

7

 

(g)                                 This
Agreement or the Note shall fail to remain in full force or effect or any
action shall be taken by or on behalf of Borrower or any of its subsidiaries to
assert the invalidity or unenforceability hereof or thereof in accordance with
their terms.

 

As used herein:

 

“subsidiary”
means, as to any person or entity, any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by such person or
entity; and

 

“Material
Subsidiary” shall mean a direct or indirect subsidiary of Borrower
which would be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X, as promulgated under the Securities Act of 1933, as
amended.

 

9.                                       Conditions Precedent to Initial Advance;
Representations on Advances.

 

(a)                                  The obligation of
Lender to make its initial Advance is subject to the satisfaction, prior to or
concurrently with the making of such initial Advance, of each of the following
conditions precedent:

 

(i)                                     The
execution and delivery of this Agreement and the Note by Borrower and Lender,
in each case, in form and substance satisfactory to Lender;

 

(b)                                 The execution and
delivery of certified copies of the resolutions of the Board of Directors of
Borrower approving the execution, delivery and performance of this Agreement
and the Note;

 

(c)                                  Delivery of a
certificate of the Secretary or an Assistant Secretary of Borrower certifying
the names and true signatures of the Officers of Borrower authorized to sign
this Agreement and the Note;

 

provided, however, that, except as otherwise
expressly agreed to by Lender after being notified of the failure of any such
condition, it shall be a condition precedent to each borrowing hereunder that,
and Borrower may not borrow or reborrow hereunder (unless consented to by OGE
Energy Corp. in writing) unless, (x) after giving effect to such
borrowing, the outstanding principal balance of all Advances outstanding
hereunder not would exceed the Maximum Loan Limit, (y) no Event of Default
or event or condition which with the giving of notice or passage of time, or
both, would constitute an Event of Default, has occurred or would result
therefrom and (z) the Termination Date shall not have occurred. The
requesting and acceptance of any Advance by Borrower shall be deemed a
representation by Borrower to Lender that the conditions set forth in the
foregoing proviso are satisfied.

 

10.                                 Notices. 
All notices required hereunder shall be directed to the parties hereto
as follows:

 

	
   

  	
  (a)

  	
  If to OGE Energy Corp.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  at

  	
  321 N. Harvey, Mail Code 1101

  Oklahoma City, OK 73102

  Attention: Treasurer

  
	
   

  	
   

  	
  Telephone:

  	
  405-553-3800

  
	
   

  	
   

  	
  Facsimile:

  	
  405-553-3567

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If to Enogex LLC:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  at

  	
  515 Central Park Drive E652

  Oklahoma City, OK 73102

  Attention: Chief Financial Officer

  
	
   

  	
   

  	
  Telephone:

  	
  405-530-7467

  
	
   

  	
   

  	
  Facsimile:

  	
  405-        
     -            

  
					

 

8

 

11.                                 Indemnification.  Borrower hereby agrees to, and to cause its
subsidiaries to, indemnify Lender, its affiliates, and each of their directors,
officers and employees against all losses, claims, damages, penalties,
judgments, liabilities and expenses (including, without limitation, all
expenses of litigation or preparation therefor whether or not the Lender or any
such affiliate is a party thereto, and all reasonable attorneys’ and paralegals’
fees, reasonable time charges and reasonable expenses of attorneys and
paralegals of the party seeking indemnification, which attorneys and paralegals
may or may not be employees of such party seeking indemnification) which any of
them may pay or incur arising out of or relating to this Agreement, the Note,
the transactions contemplated hereby, the enforcement of their rights
hereunder, thereunder and under applicable law, or the direct or indirect
application or proposed application of the proceeds of any Advance or other
extension of credit hereunder or thereunder, except to the extent that they
have resulted from the gross negligence or willful misconduct of the party
seeking indemnification. The obligations of Borrower and its subsidiaries under
this paragraph 11 shall
survive the termination of this Agreement. In enforcing this Agreement and the
Note, Lender shall have all rights under any and all applicable laws and shall
not be required to make any election of remedies or be required to marshal
assets, and Borrower hereby waives any right to assert any such claim.

 

12.                                 Amendments, Etc.  No amendments or waiver of any provision of
this Agreement shall be effective unless the same shall be in writing and
signed by Borrower and Lender. No delay or failure of Lender in exercising any
right, power, privilege or remedy hereunder or under the Note shall affect such
right, power, privilege or remedy or be deemed a waiver thereof, nor shall any
single or partial exercise thereof or any failure to exercise the same in any
instance preclude any future exercise thereof.

 

13.                                 Stated Expiry Date.  Notwithstanding anything to the contrary set
forth herein, the agreements of the Lender to provide financial accommodations
hereunder shall expire on [                           ],
2015 (the “Stated Expiry Date”),
or such later date that may be agreed to from time to time in the sole
discretion of Lender. Any extension of expiration date will be recorded on
Lender’s ledger along with other information required by paragraphs 4 and 6.

 

14.                                 Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the internal laws (as distinguished from the
choice of law provisions) of the State of Oklahoma.

 

9

 

IN WITNESS WHEREOF, the parties hereto have
caused this Second Amended and Restated Revolving Credit and Investment
Agreement to be executed as of the date first provided above.

 

	
  ENOGEX LLC

  	
  OGE ENERGY CORP.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  [

  	
  ]

  	
   

  	
  Deborah S. Fleming

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  [

  	
  ]

  	
  Title:

  	
  Treasurer

  
						

 

10

 

CONTRACT
DEMAND NOTE

 

	
  U.S. $100,000,000.00

  	
      
  , 2008

  

 

FOR VALUE RECEIVED,
the undersigned, ENOGEX LLC, a
Delaware limited liability company (the “Borrower”),
HEREBY PROMISES TO PAY to OGE
Energy Corp. (the “Lender”) the
principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000.00) or, if less, the
aggregate outstanding principal amount of the Advances made by OGE Energy Corp.
to the Borrower pursuant to the Second Amended and Restated Revolving Credit
and Investment Agreement (“Agreement”)
on the earliest to occur of the Lender’s demand therefor, the Termination Date
and such other date or dates as set forth in and required pursuant to the
Agreement. Capitalized terms used and not otherwise defined herein shall have
the meanings ascribed to them in the Agreement.

 

The Borrower promises to pay interest on the
unpaid principal amount of each Advance from the date of such Advance until
such principal amount is paid in full, at such interest rates, and payable at
such times, as are specified in the Agreement.

 

Both principal and interest are payable in
lawful money of the United States of America to the Lender at 321 N. Harvey,
Oklahoma City, OK 73102, in same day funds or at such other place as the holder
hereof may designate. Each Advance made by the Lender to the Borrower pursuant
to the Agreement, and all payments made on account of principal thereof, shall
be recorded by the Lender and, prior to any transfer hereof, endorsed on the
Lender’s ledger as provided in the Agreement; provided that the failure of the
Lender to so endorse its ledger shall not effect the liability of the Borrower
hereunder.

 

This Contract Demand Note is the “Note”
referred to in, and is entitled to the benefits of, the Agreement. The
Agreement, among other things, (i) provides for the making of Advances by
the Lender to the Borrower from time to time in the Lender’s sole discretion in
an aggregate amount not to exceed at any time outstanding the U.S. dollar
amount first above mentioned, as it may be revised from time to time and (ii) contains
provisions for (x) the discretionary acceleration of the maturity hereof
upon demand by the Lender and (y) other acceleration of the maturity
hereof upon the happening of certain stated events.

 

This Note is being issued in replacement of
and in substitution for that certain Contract Note dated as of August 14,
2006 in the original principal amount of $200,000,000 made by Enogex Inc.
in favor of the Lender (the “Original Note”).
The indebtedness evidenced by the Original Note is hereby assumed by the
Borrower and is and shall be a continuing indebtedness of the Borrower, and
nothing herein shall be deemed to constitute a payment, settlement or novation
of the Original Note, or to release or otherwise adversely affect any rights of
the Lender against any party primarily or secondarily liable for such
indebtedness.

 

The Borrower hereby waives presentment,
demand, protest and notice of any kind. No failure to exercise, and no delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.

 

11

 

THIS PROMISSORY NOTE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OKLAHOMA.

 

	
   

  	
  ENOGEX LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

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