Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 9

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          terminating their participation pursuant to these provisions, the           
          partners would have no obligation to continue making equity                 
               The partners’ equity contributions to the partnership                  
          ultimately totaled about $550 million.                                      
               The Credit Agreement                                                   
               Pursuant to the credit agreement dated January 29, 1982, FFB           
          committed to lend the partnership up to $2.02 billion for the               
          design, construction, and startup of the project.  The credit               
          agreement provided that if the partnership defaulted on the                 
          payment of principal or interest, FFB should demand payment of              
          the partnership and provide notice of the default to DOE.  If the           
          partnership or DOE failed to cure the default within 5 days, FFB            
          could terminate the credit agreement and declare the entire                 
          outstanding debt due and demand payment by DOE pursuant to DOE’s            
          loan guarantee (discussed below).  Pursuant to the credit                   
          agreement, FFB agreed that “any recovery on a claim against                 
          Borrower [the partnership] or any Partner which may arise under             

          certain levels; if estimated costs exceeded certain levels; if              
          the estimated in-service date slipped past June 1, 1986; if there           
          were no longer “reasonable assurance” that the project would                
          generate sufficient cash to permit the partnership to service its           
          debts and repay the partners’ equity contributions; or if DOE               
          gave the partnership notice that DOE had determined that there              
          was no longer reasonable assurance that the partnership would be            
          able to timely pay principal and interest on the guaranteed                 

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