This Waiver Agreement involves
Title: LIMITED WAIVER AGREEMENT
Governing Law: New York Date: 7/6/2011
Industry: Natural Gas Utilities Sector: Utilities
LIMITED WAIVER AGREEMENT
THIS LIMITED WAIVER AGREEMENT, hereinafter referred to as this “Waiver”, dated as of June 30, 2011, is made and entered into by and among Duncan Energy Partners L.P., a Delaware limited partnership (the “ Borrower ”), the Lenders party hereto and Wells Fargo Bank, National Association, successor-in-interest to Wachovia Bank, National Association, as Administrative Agent under that certain Term Loan Agreement (as amended, the “ Term Loan Agreement ”) dated as of April 18, 2008, among the Borrower, Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto.
WHEREAS, the Borrower projects its Leverage Ratio to slightly exceed 5.00 to 1.00 in the second and third fiscal quarters of 2011 and has requested the Administrative Agent and Lenders waive the covenant set forth in Section 6.07(b) of the Term Loan Agreement with respect thereto for fiscal quarters ending June 30, 2011 and September 30, 2011, and the Administrative Agent and the Lenders party hereto are willing to do so.
NOW, THEREFORE, subject to the conditions and limitations set forth herein, and in consideration of the premises and the mutual agreements herein set forth, and for other good and valuable consideration, the Borrower, the Administrative Agent and the Lenders party hereto do hereby agree as follows:
The requirement of Section 6.07(b) of the Term Loan Agreement is hereby waived for fiscal quarters ending June 30, 2011 and September 30, 2011. PROVIDED, for purposes of subsection (a) of the definition of “Applicable Rate” set forth in Section 1.01 of the Term Loan Agreement, commencing July 1, 2011, the Leverage Ratio shall be deemed to be greater than 5.00 to 1.00 until but not including the first Business Day immediately following the date a compliance certificate is delivered pursuant to Section 5.01(d) certifying that the Leverage Ratio is less than or equal to 5.00 to 1.00
Borrower hereby represents and warrants to Administrative Agent and Lenders that there exists no Default or Event of Default after giving effect to the waiver set forth herein, and all representations and warranties contained herein, in the Term Loan Agreement or otherwise made in writing by Borrower in connection herewith or therewith were true and correct in all material respects when made, and are true and correct in all material respects at and as of the date hereof, except, in each case, to the extent such representations and warranties relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date.
Except as expressly waived or agreed herein, all covenants, obligations and agreements of Borrower contained in the Term Loan Agreement shall remain in full force and effect in accordance with their terms. Without limitation of the foregoing, the consents and agreements set forth herein are limited precisely to the extent set forth herein and shall not be deemed to (a) be a consent or agreement t