exv4w1






Exhibit 4.1






 





Washington Gas Light Company




$50,000,000




4.76% Notes due November 1, 2019




 






Note Purchase Agreement




 






Dated November 2, 2009




 












 



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TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	1. AUTHORIZATION OF NOTES
	 	 	1	 
	 
	 	 	 	 
	2. SALE AND PURCHASE OF NOTES
	 	 	1	 
	 
	 	 	 	 
	3. CLOSING
	 	 	1	 
	 
	 	 	 	 
	4. CONDITIONS TO CLOSING
	 	 	2	 
	 
	 	 	 	 
	4.1. Representations and Warranties
	 	 	2	 
	4.2. Performance; No Default
	 	 	2	 
	4.3. Compliance Certificates
	 	 	2	 
	4.4. Opinions of Counsel
	 	 	2	 
	4.5. Purchase Permitted By Applicable Law, Etc.
	 	 	3	 
	4.6. [Reserved.]
	 	 	3	 
	4.7. Private Placement Number
	 	 	3	 
	4.8. Changes in Corporate Structure
	 	 	3	 
	4.9. Funding Instructions
	 	 	3	 
	4.10. Execution, Authentication and Delivery of Notes
	 	 	3	 
	4.11. Approvals
	 	 	4	 
	4.12. Proceedings and Documents
	 	 	4	 
	 
	 	 	 	 
	5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	4	 
	 
	 	 	 	 
	5.1. Organization; Power and Authority
	 	 	4	 
	5.2. Authorization, Etc.
	 	 	4	 
	5.3. Disclosure
	 	 	5	 
	5.4. Subsidiaries
	 	 	5	 
	5.5. Financial Statements; Material Liabilities
	 	 	5	 
	5.6. Compliance with Laws, Other Instruments, Etc.
	 	 	5	 
	5.7. Governmental Authorizations, Etc.
	 	 	6	 
	5.8. Litigation; Observance of Statutes and Orders
	 	 	6	 
	5.9. Taxes
	 	 	6	 
	5.10. Title to Property; Leases
	 	 	6	 
	5.11. Licenses, Permits, Etc.
	 	 	7	 
	5.12. Compliance with ERISA
	 	 	7	 
	5.13. Private Offering by the Company
	 	 	7	 
	5.14. Use of Proceeds; Margin Regulations
	 	 	7	 
	5.15. Existing Indebtedness
	 	 	8	 
	5.16. Foreign Assets Control Regulations, Etc.
	 	 	8	 
	5.17. Status under Certain Statutes
	 	 	8	 
	 
	 	 	 	 
	6. REPRESENTATIONS OF THE PURCHASERS
	 	 	9	 
	 
	 	 	 	 
	6.1. Purchase for Investment
	 	 	9	 
	6.2. Source of Funds
	 	 	9	 












 



-ii-


	 	 	 	 	 
	 	 	Page
	7. INFORMATION AS TO COMPANY
	 	 	10	 
	 
	 	 	 	 
	7.1. Financial and Business Information
	 	 	10	 
	7.2. Officer’s Certificate
	 	 	13	 
	7.3. Visitation
	 	 	13	 
	 
	 	 	 	 
	8. PAYMENT AND PREPAYMENT OF THE NOTES
	 	 	14	 
	 
	 	 	 	 
	8.1. Maturity
	 	 	14	 
	8.2. Optional Prepayments with Make Whole Amount
	 	 	14	 
	8.3. Allocation of Partial Prepayments
	 	 	14	 
	8.4. Maturity; Surrender, Etc.
	 	 	15	 
	8.5. Purchase of Notes
	 	 	15	 
	8.6. Make Whole Amount
	 	 	15	 
	 
	 	 	 	 
	9. AFFIRMATIVE COVENANTS
	 	 	17	 
	 
	 	 	 	 
	9.1. Compliance with Law
	 	 	17	 
	9.2. Insurance
	 	 	17	 
	9.3. Maintenance of Properties
	 	 	17	 
	9.4. Payment of Taxes
	 	 	17	 
	9.5.
Corporate Existence, Etc.
	 	 	18	 
	9.6. Books and Records
	 	 	18	 
	 
	 	 	 	 
	10. NEGATIVE COVENANTS
	 	 	18	 
	 
	 	 	 	 
	10.1. Transactions with Affiliates
	 	 	18	 
	10.2. Merger, Consolidation, Etc.
	 	 	18	 
	10.3. Line of Business
	 	 	19	 
	10.4. [Reserved.]
	 	 	19	 
	10.5. Limitation on Consolidated Total Debt
	 	 	19	 
	10.6. Limitation on Issuance of Mortgage Bonds
	 	 	19	 
	 
	 	 	 	 
	11. EVENTS OF DEFAULT
	 	 	20	 
	 
	 	 	 	 
	12. REMEDIES ON DEFAULT, ETC.
	 	 	22	 
	 
	 	 	 	 
	12.1. Acceleration
	 	 	22	 
	12.2. Other Remedies
	 	 	22	 
	12.3. Rescission
	 	 	23	 
	12.4. No Waivers or Election of Remedies, Expenses, Etc.
	 	 	23	 
	 
	 	 	 	 
	13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	 	 	23	 
	 
	 	 	 	 
	13.1. Registration of Notes
	 	 	23	 
	13.2. Transfer and Exchange of Notes
	 	 	24	 
	13.3. Replacement of Notes
	 	 	24	 
	 
	 	 	 	 
	14. PAYMENTS ON NOTES
	 	 	25	 
	 
	 	 	 	 
	14.1. Place of Payment
	 	 	25	 
	14.2. Home Office Payment
	 	 	25	 
	 
	 	 	 	 
	15.
EXPENSES, ETC.
	 	 	25	 
	 
	 	 	 	 
	15.1. Transaction Expenses.
	 	 	25	 
	15.2. Survival
	 	 	26	 












 



-iii-


	 	 	 	 	 
	 	 	Page
	16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	 	 	26	 
	 
	 	 	 	 
	17. AMENDMENT AND WAIVER
	 	 	26	 
	 
	 	 	 	 
	17.1. Requirements
	 	 	26	 
	17.2. Solicitation of Holders of Notes
	 	 	27	 
	17.3. Binding Effect, Etc.
	 	 	27	 
	17.4. Notes Held by Company, Etc.
	 	 	28	 
	 
	 	 	 	 
	18. NOTICES
	 	 	28	 
	 
	 	 	 	 
	19. REPRODUCTION OF DOCUMENTS
	 	 	28	 
	 
	 	 	 	 
	20. CONFIDENTIAL INFORMATION
	 	 	29	 
	 
	 	 	 	 
	21. SUBSTITUTION OF PURCHASER
	 	 	30	 
	 
	 	 	 	 
	22. MISCELLANEOUS
	 	 	30	 
	 
	 	 	 	 
	22.1. Successors and Assigns
	 	 	30	 
	22.2. Payments Due on Non Business Days
	 	 	30	 
	22.3. Accounting Terms
	 	 	30	 
	22.4. Severability
	 	 	31	 
	22.5. Construction, Etc.
	 	 	31	 
	22.6. Counterparts
	 	 	31	 
	22.7. Governing Law
	 	 	31	 
	22.8. Jurisdiction and Process; Waiver of Jury Trial
	 	 	31	 













 



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Schedules




	 	 	 	 	 
	Schedule A

	 	—
	 	Information Relating to Purchasers
	Schedule B

	 	—
	 	Defined Terms
	Schedule 5.5

	 	—
	 	Financial Statements
	Schedule 5.12

	 	—
	 	Employee Plans
	Schedule 5.15

	 	—
	 	Existing Indebtedness
	Schedule 10.5

	 	—
	 	Liens
	Exhibit 1

	 	—
	 	Form of 4.76% Note due November 1, 2019
	Exhibit 4.4(a)

	 	—
	 	Matters to be Covered in Opinion of General Counsel of the Company
	Exhibit 4.4(b)

	 	—
	 	Matters to be Covered in Opinion of Special Counsel to the Purchasers













 



 




Washington Gas Light Company

101 Constitution Avenue, NW

Washington, DC 20080

United States




4.76% Notes due November 1, 2019




November 2, 2009



To Each of the Purchasers Listed in Schedule A

     Hereto:




Ladies and Gentlemen:




     Washington Gas Light Company, a District of Columbia and Virginia corporation (the “Company”),
agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and,
collectively, the “Purchasers”) as follows:



1. AUTHORIZATION OF NOTES.




     The Company has authorized the issuance and sale of $50,000,000 aggregate principal amount of
its 4.76% Notes due November 1, 2019 (the “Notes”, such term to include any such notes issued in
substitution therefor pursuant to Section 13 of this Agreement). The Notes shall be substantially
in the form set forth in Exhibit 1. Certain capitalized and other terms used in this Agreement are
defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise
specified, to a Schedule or an Exhibit attached to this Agreement.



2. SALE AND PURCHASE OF NOTES.




     Subject to the terms and conditions of this Agreement, the Company agrees to issue and sell to
the Purchasers and each of the Purchasers agrees, severally and not jointly, to purchase from the
Company, at the Closing provided for in Section 3 hereof, Notes in the principal amount specified
opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount
thereof. The obligations of each Purchaser hereunder are several and not joint obligations, and
each Purchaser shall have no obligation hereunder and no liability to any Person for the
performance or non-performance by any other Purchaser hereunder.



3. CLOSING.




     The sale and purchase of the Notes to be purchased by the Purchasers shall occur at the
offices of Hunton & Williams LLP, 200 Park Avenue, 52nd Floor, New York, NY, at
10:00a.m., New York time, at a closing (the “Closing”) on November 2, 2009 or on such other
Business Day thereafter as may be agreed upon by the Company and the Purchasers. At the Closing,
the
Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form
of a single Note (or such greater number of Notes in denominations of at least $100,000 as each









 



 


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Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in
the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its
order of immediately available funds in the amount of the purchase price therefor by wire transfer
of immediately available funds for the account of the Company as specified in Section 4.9 hereof.
If, at the Closing, the Company shall fail to tender such Notes to any Purchaser as provided above
in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to
the Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further
obligations under this Agreement, without thereby waiving any rights such Purchaser may have by
reason of such failure or such nonfulfillment.




4. CONDITIONS TO CLOSING.




     The obligations of each Purchaser to purchase and pay for the Notes to be sold to such
Purchaser at the Closing is subject to the fulfillment to the Purchaser’s satisfaction, prior to or
on the date of Closing, of the following conditions:



     4.1. Representations and Warranties.



     The representations and warranties of the Company in this Agreement shall be correct on the
date hereof and on the date of the Closing.



     4.2. Performance; No Default.



     The Company shall have performed and complied with all agreements and conditions contained in
this Agreement required to be performed or complied with by it prior to or on the date of Closing
and, after giving effect to the issue and sale of the Notes (and the application of the proceeds
thereof as contemplated by Section 5.14 hereof), no Default or Event of Default shall have occurred
and be continuing.



     4.3. Compliance Certificates.




     (a) Officer’s Certificate. The Company shall have delivered to the Purchasers
an Officer’s Certificate, dated the date of Closing, certifying that the conditions
specified in Sections 4.1, 4.2 and 4.8 have been fulfilled.




     (b) Secretary’s Certificate. The Company shall have delivered to the
Purchasers a certificate of its Secretary or Assistant Secretary, dated the date of Closing,
certifying as to the organizational documents, the resolutions attached thereto and other
proceedings relating to the authorization, execution and delivery of the Notes and this
Agreement and the name, title and the signature of each officer of the Company executing the
Notes and this Agreement on behalf of the Company.



     4.4. Opinions of Counsel.



     The Purchasers shall have received opinions in form and substance satisfactory to the
Purchasers, dated the date of the Closing (a) from the General Counsel of the Company covering the
matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions









 



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contemplated hereby as the Purchasers may reasonably request and (b) from Hunton & Williams LLP,
special counsel to the Purchasers in connection with such transactions, covering the matters set
forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as the
Purchasers may reasonably request.



     4.5. Purchase Permitted By Applicable Law, Etc.



     On the date of the Closing, the purchase of Notes by the Purchasers shall (a) be permitted by
the laws and regulations of each jurisdiction to which the Purchasers are subject, without recourse
to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of the particular
investment, (b) not violate any applicable law or regulation (including, without limitation,
Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject
the Purchasers to any tax, penalty or liability under or pursuant to any applicable law or
regulation, which law or regulation was not in effect on the date hereof. If requested by the
Purchasers, the Purchasers shall have received an Officer’s Certificate certifying as to such
matters of fact as the Purchasers may reasonably specify to enable the Purchasers to determine
whether such purchase is so permitted.



     4.6. [Reserved.]



     4.7. Private Placement Number.



     A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation
with the SVO) shall have been obtained for the Notes.



     4.8. Changes in Corporate Structure.



     The Company shall not have changed its jurisdiction of incorporation or been a party to any
merger or consolidation and shall not have succeeded to all or any substantial part of the
liabilities of any other entity, at any time following the date of the most recent financial
statements referred to in Schedule 5.5.



     4.9. Funding Instructions.



     At least three Business Days prior to the date of the Closing, each of the Purchasers shall
have received written instructions signed by a Responsible Officer on letterhead of the Company
setting forth the wiring instructions including (i) the name and address of the transferee bank,
(ii)
such transferee bank’s ABA number and (iii) the account name and number into which the
purchase price for the Notes is to be deposited.



     4.10. Execution, Authentication and Delivery of Notes.



     The Note or Notes to be purchased by each of the Purchasers shall have been duly executed and
delivered by the Company to each of the Purchasers.









 



-4-


     4.11. Approvals.



     The Company shall have received all Governmental Approvals of, and shall have completed all
Governmental Registrations with, all Governmental Authorities, in each case necessary for the
execution, delivery or performance by the Company of this Agreement and the Notes, including any
consents and approvals referred to in Section 5.7, and the Company shall have furnished to each of
the Purchasers and their special counsel true and correct copies of all such Governmental Approvals
and Governmental Registrations.



     4.12. Proceedings and Documents.



     All corporate and other proceedings in connection with the transactions contemplated by this
Agreement and all documents and instruments incident to such transactions shall be satisfactory to
the Purchasers and their special counsel, and the Purchasers and their special counsel shall have
received all such counterpart originals or certified or other copies of such documents as the
Purchasers or their special counsel may reasonably request.



5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.




     The Company represents and warrants to each of the Purchasers, as of the date of this
Agreement that:



     5.1. Organization; Power and Authority.



     The Company is a corporation duly organized and validly existing under the laws of the
District of Columbia and the Commonwealth of Virginia, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such qualification is required by
law, other than those jurisdictions as to which the failure to be so qualified or in good standing
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. The Company has the power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and proposes to
transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof
and thereof.



     5.2. Authorization, Etc.



     This Agreement and the Notes have been duly authorized by all necessary action on the part of
the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will
constitute, a legal, valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally and (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).









 



-5-


     5.3. Disclosure.



     The Company, through its placement agent, J.P. Morgan Securities Inc., has delivered to each
of the Purchasers a copy of a Private Placement Memorandum, dated July 31, 2009 (the “Memorandum”),
relating to the transactions contemplated hereby. This Agreement, the Memorandum and the
documents, certificates or other writings delivered to the Purchasers by or on behalf of the
Company in connection with the transactions contemplated herein, and the financial statements
listed in Schedule 5.5 (this Agreement, the Memorandum and such documents, certificates or other
writings and such financial statements delivered to each Purchaser prior to August 10, 2009 being
referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which they were made. Except
as disclosed in the Disclosure Documents, since September 30, 2008, there has been no change in the
financial condition, operations, business or properties of the Company, except changes that
individually or in the aggregate could not reasonably be expected to have a Material Adverse
Effect.



     5.4. Subsidiaries.



     The Company does not have any Subsidiaries.



     5.5. Financial Statements; Material Liabilities.



     The Company has filed with the SEC and made available on its web site copies of the financial
statements of the Company listed on Schedule 5.5. The financial statements listed on Schedule 5.5
(including in each case the related schedules and notes, except for the absence of footnotes
applicable to quarterly financial statements generally) fairly present in all material respects the
financial position of the Company as of the respective dates specified in Schedule 5.5 and the
results of its operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial statements, to normal
year-end adjustments). The Company does not have any Material liabilities that are not disclosed
on such financial statements or otherwise disclosed in the Disclosure Documents.



     5.6. Compliance with Laws, Other Instruments, Etc.



     The execution, delivery and performance by the Company of this Agreement and the Notes will
not (i) contravene, result in any breach of, or constitute a default under, or result in the
creation of any Lien in respect of any property of the Company under, any indenture, mortgage, deed
of trust, loan, purchase or credit agreement, lease, corporate charter or by laws, or any other
Material agreement or instrument to which the Company is bound or by which the Company or any of
its properties may be bound or affected, (ii) conflict with or result in a breach of any of the
terms, conditions or provisions of any order, judgment, decree, or ruling of any arbitrator or
Governmental Authority applicable to the Company or (iii) violate any provision of any statute or
other rule or regulation of any Governmental Authority applicable to the Company.









 



-6-


     5.7. Governmental Authorizations, Etc.



     No consent, approval, authorization, order, registration or qualification of or with any
Governmental Authority is required for the issue and sale of the Notes or the consummation by the
Company of the other transactions contemplated by this Agreement, except for filings with and the
orders from the Public Service Commission of the District of Columbia, the Public Service
Commission of Maryland and the State Corporation Commission of Virginia and such other applicable
filings and orders required by any other Governmental Authority having jurisdiction over the
Company authorizing the issuance and sale by the Company of the Notes all of which orders have been
obtained and are in full force and effect.



     5.8. Litigation; Observance of Statutes and Orders.




     (a) There are no actions, suits, investigations or proceedings pending or, to the
knowledge of the Company, threatened against or affecting the Company or any property of the
Company before any arbitrator of any kind or in, before or by any Governmental Authority
that, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.




     (b) The Company is not in default under any order, judgment, decree or ruling of any
arbitrator or Governmental Authority or is in violation of any applicable law, ordinance,
rule or regulation (including without limitation Environmental Laws or the USA Patriot Act)
of any Governmental Authority, which default or violation, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect.



     5.9. Taxes.



     The Company has filed all income tax returns that are required to have been filed in any
jurisdiction, and has paid all taxes shown to be due and payable on such tax returns and all other
taxes and assessments payable by it, to the extent such taxes and assessments have become due
and payable and before they have become delinquent, except for any taxes and assessments (i)
the amount of which is not individually or in the aggregate Material or (ii) the amount,
applicability or validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company has established adequate reserves in accordance
with GAAP. The Federal income tax liabilities of the Company and its Subsidiaries have been
finally determined (whether by reason of completed audits or the statute of limitations having run)
for all fiscal years up to and including the fiscal year ended September 30, 2005.



     5.10. Title to Property; Leases.



     The Company has good and sufficient title, rights of way, easements and/or leasehold interests
in or to its Material properties, including all such properties reflected in the most recent
audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company
after said date (except as sold or otherwise disposed of in the ordinary course of business), in
each case free and clear of Liens, except for those defects in title and Liens that,









 



-7-



individually
or in the aggregate, could not have a Material Adverse Effect. All Material leases, rights of way
and easements are valid and subsisting and are in full force and effect in all material respects.



     5.11. Licenses, Permits, Etc.



     The Company owns or possesses all licenses, permits, franchises, authorizations, patents,
copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto,
that are Material, without known conflict with the rights of others, except for those conflicts
that, individually or in the aggregate, could not have a Material Adverse Effect.



     5.12. Compliance with ERISA.



     Except for employee plans listed on Schedule 5.12, (i) neither the Company nor any ERISA
Affiliate maintains, contributes to or is obligated to maintain or contribute to, or has, at any
time within the past six years, maintained, contributed to or been obligated to maintain or
contribute to, any employee benefit plan which is subject to Title I or Title IV of ERISA or
section 4975 of the Code and (ii) neither the Company nor any ERISA Affiliate is, or has ever been
at any time within the past six years, a “party in interest” (as defined in section 3(14) of ERISA)
or a “disqualified person” (as defined in section 4975 of the Code) with respect to any such plan.



     5.13. Private Offering by the Company.



     Neither the Company nor anyone acting on its behalf has offered the Notes or any similar
securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached
or negotiated in respect thereof with, any Person other than the Purchasers and not more than 35
other Institutional Investors, each of which has been offered the Notes at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Notes to the registration requirements of
Section 5 of the Securities Act or to the registration requirements of any securities or blue sky
laws of any applicable jurisdiction.



     5.14. Use of Proceeds; Margin Regulations.



     The Company will apply the proceeds of the sale of the Notes to refinance existing
indebtedness. No part of the proceeds from the sale of the Notes hereunder will be used, directly
or indirectly, for the purpose of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the
purpose of buying or carrying or trading in any securities under such circumstances as to involve
the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or
dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute
more than 5% of the value of the assets of the Company, and the Company does not have any present
intention that margin stock will constitute more than 5% of the value of such assets. As used in
this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings
assigned to them in said Regulation U.









 



-8-


     5.15. Existing Indebtedness.




     (a) All outstanding Indebtedness of the Company as of June 30, 2009 which was required
to be included on the balance sheet of the Company as of that date in accordance with GAAP
was properly included on the balance sheet of the Company as of that date in the Company’s
Form 10-Q for the fiscal quarter ended June 30, 2009. Since June 30, 2009, there has been
no Material increase in the amount of Indebtedness of the Company, other than as described
on Schedule 5.15. The Company is not in default and no waiver of default is currently in
effect in the payment of any principal or interest on any Indebtedness of the Company and no
event or condition exists with respect to any Indebtedness of the Company that would permit
(or that with notice or the lapse of time, or both, would permit) one or more Persons to
cause such Indebtedness to become due and payable before its stated maturity or before its
regularly scheduled dates of payment.




     (b) Except as disclosed in Schedule 5.15, the Company has not agreed or consented to
cause or permit in the future (upon the happening of a contingency or otherwise) any of its
Property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by
the Indenture.




     (c) Except pursuant to supplemental indentures listed on Schedule 5.15, the Indenture
has not been amended, supplemented or otherwise modified.



     5.16. Foreign Assets Control Regulations, Etc.




     (a) Neither the sale of the Notes by the Company hereunder nor its use of the proceeds
thereof will violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating
thereto.




     (b) Neither the Company nor any Subsidiary (i) is a Person described or designated in
the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (ii) to the best of its knowledge,
engages in any dealings or transactions with any such Person. The Company and its
Subsidiaries are in compliance, in all material respects, with the USA Patriot Act.




     (c) No part of the proceeds from the sale of the Notes hereunder will be used in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming
in all cases that such Act applies to the Company.



     5.17. Status under Certain Statutes.



     The Company is not subject to regulation under the Investment Company Act of 1940, as amended,
the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as
amended, or the Federal Power Act, as amended.









 



-9-


6. REPRESENTATIONS OF THE PURCHASERS.




     6.1. Purchase for Investment.



     Each Purchaser severally represents that it is an accredited investor and it is purchasing the
Notes for its own account or for one or more separate accounts maintained by such Purchaser or for
the account of one or more pension or trust funds and not with a view to the distribution thereof,
provided that the disposition of such Purchaser’s or their property shall at all times be within
such Purchaser’s or their control. Each Purchaser understands that the Notes have not been
registered under the Securities Act and may be resold only if registered pursuant to the provisions
of the Securities Act or if an exemption from registration is available, except under circumstances
where neither such registration nor such an exemption is required by law, and that the Company is
not required to register the Notes.



     6.2. Source of Funds.



     Each Purchaser severally represents that at least one of the following statements is an
accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to
pay the purchase price of the Notes to be purchased by such Purchaser hereunder:




     (a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption
(“PTE”) 95 60) in respect of which the reserves and liabilities (as defined by the
annual statement for life insurance companies approved by the National Association of
Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s)
held by or on behalf of any employee benefit plan together with the amount of the reserves
and liabilities for the general account contract(s) held by or on behalf of any other
employee benefit plans maintained by the same employer (or affiliate thereof as defined in
PTE 95 60) or by the same employee organization in the general account do not exceed 10% of
the total reserves and liabilities of the general account (exclusive of separate account
liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such
Purchaser’s state of domicile; or




     (b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or




     (c) the Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90 1 or (ii) a bank collective investment fund, within the meaning of PTE 91
38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or
employee organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or









 



-10-



     (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84 14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s
assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, as of the last day of its most recent calendar year, the QPAM does not own a 10%
or more interest in the Company and no person controlling or controlled by the QPAM
(applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 20% or
more interest in the Company (or less than 20% but greater than 10%, if such person
exercises control over the management or policies of the Company by reason of its ownership
interest) and (i) the identity of such QPAM and (ii) the names of all employee benefit plans
whose assets are included in such investment fund have been disclosed to the Company in
writing pursuant to this clause (d); or




     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96 23 (the “INHAM Exemption”)) managed by an “in house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a
person controlling or controlled by the INHAM (applying the definition of “control” in
Section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the
identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets
constitute the Source have been disclosed to the Company in writing pursuant to this clause
(e); or




     (f) the Source is a governmental plan; or




     (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this clause (g); or




     (h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.


As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate
account” shall have the respective meanings assigned to such terms in Section 3 of ERISA.




7. INFORMATION AS TO COMPANY.




     7.1. Financial and Business Information.




The Company shall deliver to each holder of Notes that is an Institutional Investor:









 



-11-



     (a) Quarterly Statements — as soon as available and in any event within 60
days (or such shorter period as is 15 days greater than the period applicable to the filing
of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of
whether the Company is subject to the filing requirements thereof) after the end of each of
the first three quarterly fiscal periods in each fiscal year of the Company,




     (i) a consolidated balance sheet of the Company and its consolidated
Subsidiaries as of the end of such quarter, and




     (ii) consolidated statements of income and cash flows of the Company and its
consolidated Subsidiaries for such quarter and (in the case of the second and third
quarters) for the portion of the fiscal year ending with such quarter,




setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and
certified by a Senior Financial Officer as fairly presenting, in all material respects, the
consolidated financial position of the companies being reported on and their results of
operations, subject to changes resulting from normal year-end adjustments; provided that
delivery within the time period specified above of copies of the Company’s Form 10-Q
prepared in compliance with the requirements therefor and filed with the SEC shall be
deemed to satisfy the requirements of this Section 7.1(a), and provided, further, that the
Company shall be deemed to have made such delivery of such Form 10-Q if it shall have timely
made such Form 10-Q available on “EDGAR” and on its home page on the worldwide web (at the
date of this Agreement located at: http//www.wglholdings.com) and shall have given each
holder prior notice of such availability on EDGAR and on its home page in connection with
each delivery (such availability and notice thereof being referred to as “Electronic
Delivery”);




     (b) Annual Statements — as soon as available and in any event within 105 days
(or such shorter period as is 15 days greater than the period applicable to the filing of
the Company’s Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of
whether the Company is subject to the filing requirements thereof) after the end of each
fiscal year of the Company,




     (i) a consolidated balance sheet and statement of capitalization of the Company
and its consolidated Subsidiaries as of the end of such year, and




     (ii) consolidated statements of income, changes in shareholder’s equity and
cash flows of the Company and its consolidated Subsidiaries for such year,




setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent public accountants of recognized national standing, which opinion
shall state that such financial statements present fairly, in all material respects, the
consolidated financial position of the companies being reported upon and their results of
operations and cash flows and have been prepared in conformity with GAAP, and that the
examination of such accountants in connection with such financial statements has









 



-12-



been made
in accordance with generally accepted auditing standards, and that such audit provides a
reasonable basis for such opinion in the circumstances; provided that the delivery within
the time period specified above of the Company’s Annual Report on Form 10-K for such fiscal
year (together with the Company’s annual report to shareholders, if any, prepared pursuant
to Rule 14a3 under the Exchange Act) prepared in accordance with the requirements therefor
and filed with the SEC shall be deemed to satisfy the requirements of this Section 7.1(b),
and provided, further, that the Company shall be deemed to have made such delivery of such
Form 10-K if it shall have timely made Electronic Delivery thereof;




     (c) SEC and Other Reports — promptly upon their becoming available, one copy
of (i) each financial statement, report, notice or proxy statement sent by the Company to
its principal lending banks as a whole (excluding information sent to such banks in the
ordinary course of administration of a bank facility, such as information relating to
pricing and borrowing availability) or to its public securities holders generally, and (ii)
each regular or periodic report, each registration statement that shall have become
effective (without exhibits except as expressly requested by such holder), and each final
prospectus and all amendments thereto filed by the Company with the SEC; provided, however,
the Company shall be deemed to have made such delivery of such financial
statement, report, notice, proxy statement, registration statement, prospectus or
amendment thereto if it shall have made Electronic Delivery thereof;




     (d) Notice of Default or Event of Default — promptly, and in any event within
10 Business Days, after a Responsible Officer becoming aware of the existence of any
Default or Event of Default, a written notice specifying the nature and period of existence
thereof and what action the Company is taking or proposes to take with respect thereto;




     (e) ERISA Matters — promptly, and in any event within 10 Business Days after a
Responsible Officer becoming aware of any of the following, a written notice setting forth
the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes
to take with respect thereto:




     (i) with respect to any Plan, any reportable event, as defined in Section
4043(c) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date hereof; or




     (ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or




     (iii) any event, transaction or condition that could result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to









 



-13-



Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties or
assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
such penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, could reasonably be expected
to have a Material Adverse Effect; and




     (f) Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or
properties of the Company or any of its Subsidiaries or relating to the ability of the
Company to perform its obligations under this Agreement and under the Notes as from time to
time may be reasonably requested by such holder of Notes.



     7.2. Officer’s Certificate.



     Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or
Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth
(which, in the case of Electronic Delivery of any such financial statements, shall be by separate
concurrent delivery of such certificate to each holder of Notes):




     (a) Covenant Compliance — the information (including detailed calculations)
required in order to establish whether the Company was in compliance with the requirements
of Section 10.5 hereof, during the quarterly or annual period covered by the statements then
being furnished (including the calculations of the amount and percentage permissible and the
calculation of the amount and percentage then in existence); and




     (b) Event of Default — a statement that such Senior Financial Officer has
reviewed the relevant terms hereof and has made, or caused to be made, under his or her
supervision, a review of the transactions and conditions of the Company and its Subsidiaries
from the beginning of the quarterly or annual period covered by the statements then being
furnished to the date of the certificate and that such review shall not have disclosed the
existence during such period of any condition or event that constitutes a Default or an
Event of Default or, if any such condition or event existed or exists, specifying the nature
and period of existence thereof and what action the Company shall have taken or proposes to
take with respect thereto.



     7.3. Visitation.



     The Company shall permit the representatives of each holder of Notes that is an Institutional
Investor:




     (a) No Default — if no Default or Event of Default then exists, at the expense
of such holder and upon reasonable prior notice to the Company, to visit the principal
executive office of the Company and its Subsidiaries, to discuss the business, finances and
accounts of the Company with the Company’s officers, all at such reasonable times as may be
reasonably requested in writing; provided, however, that such holder shall not









 



-14-



have the
right to visit such principal executive office more than once in any calendar year; and




     (b) Default — if a Default or Event of Default then exists, at the expense of
the Company, to visit and inspect any of the offices or properties of the Company or any
Subsidiary, to examine all their respective books of account, records, reports and other
papers (to the extent the Company is not otherwise required to maintain confidentiality of
such records, reports and papers), to make copies and extracts therefrom, and to discuss
their respective businesses, finances and accounts with their respective officers and
independent public accountants (and by this provision the Company authorizes said
accountants to discuss the businesses, finances and accounts of the Company and its
Subsidiaries, if any), all at such times and as often as may be reasonably requested.



8. PAYMENT AND PREPAYMENT OF THE NOTES.




     8.1. Maturity.



     As provided therein, the entire unpaid principal balance of the Notes shall be due and payable
on the stated maturity date thereof.



     8.2. Optional Prepayments with Make Whole Amount.



     The Company may, at its option, upon notice as provided below, prepay at any time all, or from
time to time any part of, the Notes, in an amount not less than 5% of the aggregate principal
amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal
amount so prepaid, plus the Make Whole Amount determined for the prepayment date with respect to
such principal amount. The Company will give each holder of Notes written notice of each optional
prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date
fixed for such prepayment. Each such notice shall specify such date (which shall be a Business
Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount
of each Note held by such holder to be prepaid (determined in accordance with Section 8.3 hereof),
and the interest to be paid on the prepayment date with respect to such principal amount being
prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the
estimated Make Whole Amount due in connection with such prepayment (calculated as if the date of
such notice were the date of the prepayment), setting forth the details of such computation. Two
Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a
certificate of a Senior Financial Officer specifying the calculation of such Make Whole Amount as
of the specified prepayment date.



     8.3. Allocation of Partial Prepayments.



     In the case of each partial prepayment of the Notes pursuant to Section 8.2 hereof, the
principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time
outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts
thereof not theretofore called for prepayment.









 



-15-


     8.4. Maturity; Surrender, Etc.



     In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of
each Note to be prepaid shall mature and become due and payable on the date fixed for such
prepayment (which shall be a Business Day), together with interest on such principal amount accrued
to such date and the applicable Make Whole Amount, if any. From and after such date, unless the
Company shall fail to pay such principal amount when so due and payable, together with the interest
and Make Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to
accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any
Note.



     8.5. Purchase of Notes.



     The Company will not and will not permit any Affiliate to purchase, redeem, prepay or
otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment
or prepayment of the Notes in accordance with the terms of this Agreement and the
Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to
the holders of all Notes at the time outstanding upon the same terms and conditions. Any such
offer shall provide each holder with sufficient information to enable it to make an informed
decision with respect to such offer, and shall remain open for at least 20 Business Days. If the
holders of more than 51% of the principal amount of the Notes then outstanding accept such offer,
the Company shall promptly notify the remaining holders of such fact and the expiration date for
the acceptance by holders of Notes of such offer shall be extended by the number of days necessary
to give each such remaining holders at least 10 Business Days from its receipt of such notice to
accept such offer. The Company will promptly cancel all Notes acquired by it or any Affiliate
pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this
Agreement and no Notes may be issued in substitution or exchange for any such Notes.



     8.6. Make Whole Amount.



     The term “Make Whole Amount” means, with respect to any Note, an amount equal to the excess,
if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Note over the amount of such Called Principal, provided that the Make Whole
Amount may in no event be less than zero. For the purposes of determining the Make Whole Amount,
the following terms have the following meanings:




     “Called Principal” means, with respect to any Note, the principal of such Note that is
to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and
payable pursuant to Section 12.1, as the context requires.




     “Discounted Value” means, with respect to the Called Principal of any Note, the amount
obtained by discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with respect to
such Called Principal, in accordance with accepted financial practice and at a




 











 




 -16-



discount
factor (applied on the same periodic basis as that on which interest on the Notes is
payable) equal to the Reinvestment Yield with respect to such Called Principal.




     “Reinvestment Yield” means, with respect to the Called Principal of any Note, 50 basis
points plus the yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New
York City time) on the second Business Day preceding the Settlement Date with respect to
such Called Principal, on the display designated as “Page PX1” (or such other display as may
replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively
traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not
reported as of such time or the yields reported as of such time are not ascertainable
(including by way of interpolation), the Treasury Constant Maturity Series Yields reported,
for the latest day for which such yields have been so reported as of the second Business Day
preceding the Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S. Treasury
securities having a constant maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date.




     In the case of each determination under clause (i) or clause (ii), as the case may be,
of the preceding paragraph, such implied yield will be determined, if necessary, by (a)
converting U.S. Treasury bill quotations to bond equivalent yields in accordance with
accepted financial practice and (b) interpolating linearly between (1) the applicable U.S.
Treasury security with the maturity closest to and greater than such Remaining Average Life
and (2) the applicable U.S. Treasury security with the maturity closest to and less than
such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of
decimal places as appears in the interest rate of the applicable Note.




     “Remaining Average Life” means, with respect to any Called Principal, the number of
years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called
Principal into (ii) the sum of the products obtained by multiplying (a) the principal
component of each Remaining Scheduled Payment with respect to such Called Principal by (b)
the number of years (calculated to the nearest one-twelfth year) that will elapse between
the Settlement Date with respect to such Called Principal and the scheduled due date of such
Remaining Scheduled Payment.




     “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note,
all payments of such Called Principal and interest thereon that would be due after the
Settlement Date with respect to such Called Principal if no payment of such Called Principal
were made prior to its scheduled due date, provided that if such Settlement Date is not a
date on which interest payments are due to be made under the terms of the Notes, then the
amount of the next succeeding scheduled interest payment will be reduced by the amount of
interest accrued to such Settlement Date and required to be paid on such Settlement Date
pursuant to Section 8.2 or Section 12.1.




     “Settlement Date” means, with respect to the Called Principal of any Note, the date on
which such Called Principal is to be prepaid pursuant to Section 8.2 or has









 



-17-



become or is
declared to be immediately due and payable pursuant to Section 12.1, as the context
requires.



9. AFFIRMATIVE COVENANTS.




     The Company covenants that so long as any of the Notes are outstanding:



     9.1. Compliance with Law.



     Without limiting Section 10.4, the Company will and will cause each of its Material
Subsidiaries to comply with all laws, ordinances or governmental rules or regulations to which each
of them is subject, including, without limitation, ERISA, the USA Patriot Act and Environmental
Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and
other governmental authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent necessary to ensure that non
compliance with such laws, ordinances or governmental rules or regulations or
failures to obtain or maintain in effect such licenses, certificates, permits, franchises and
other governmental authorizations could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.



     9.2. Insurance.



     The Company will and will cause each of its Material Subsidiaries to maintain, with
financially sound and reputable insurers, insurance with respect to their respective properties and
businesses against such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co insurance and self insurance, if adequate reserves are
maintained with respect thereto) as is customary in the case of entities of established reputations
of similar size engaged in the same or a similar business and similarly situated.



     9.3. Maintenance of Properties.



     The Company will and will cause each of its Material Subsidiaries to maintain and keep, or
cause to be maintained and kept, their respective properties in good working order and condition
(other than ordinary wear and tear), so that the business carried on in connection therewith may be
properly conducted at all times, provided that this Section shall not prevent the Company or any
Material Subsidiary from discontinuing the operation and the maintenance of any of its properties
if such discontinuance is desirable in the conduct of its business and the Company has concluded
that such discontinuance could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.



     9.4. Payment of Taxes.



     The Company will and will cause each of its Material Subsidiaries to file all income tax or
similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes
shown to be due and payable on such tax returns and all other taxes, assessments, governmental
charges, or levies payable by any of them, to the extent the same have become due and payable and
before they have become delinquent, provided that neither the Company nor any Material









 



-18-



Subsidiary
need pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity
thereof is contested by the Company or such Material Subsidiary in good faith and in appropriate
proceedings, and the Company or a Material Subsidiary has established adequate reserves therefor in
accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all
such taxes, assessments, charges and levies in the aggregate could not reasonably be expected to
have a Material Adverse Effect.



     9.5. Corporate Existence, Etc.



     Subject to Section 10.2, the Company will at all times preserve and keep in full force and
effect its corporate existence. Subject to Section 10.2, the Company will at all times preserve
and keep in full force and effect the corporate existence of each of its Material Subsidiaries
(unless merged into the Company or a Wholly Owned Subsidiary) and all rights and franchises
of the Company and its Material Subsidiaries unless, in the good faith judgment of the
Company, the termination of or failure to preserve and keep in full force and effect such corporate
existence, right or franchise could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.



     9.6. Books and Records.



     The Company will, and will cause each of its Material Subsidiaries, if any, to maintain proper
books of record and account to the extent necessary to prepare the consolidated financial
statements of the Company in conformity with GAAP and all applicable requirements of any
Governmental Authority having legal or regulatory jurisdiction over the Company or such Material
Subsidiary, as the case may be.



10. NEGATIVE COVENANTS.




     The Company covenants that so long as any of the Notes are outstanding:



     10.1. Transactions with Affiliates.



     The Company will not and will not permit any Material Subsidiary to enter into directly or
indirectly any Material transaction or Material group of related transactions (including without
limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any
service) with any Affiliate (other than the Company or another Material Subsidiary), except in the
ordinary course of the Company’s or such Material Subsidiary’s business and upon fair and
reasonable terms no less favorable to the Company or such Material Subsidiary than could be
obtainable in a comparable arm’s length transaction with a Person other than an Affiliate;
provided, however, that notwithstanding the foregoing, the Company and any Material Subsidiary may
take any action required by Governmental Authority.



     10.2. Merger, Consolidation, Etc.



     The Company will not consolidate with or merge with any other Person or convey, transfer or
lease its properties or assets substantially as an entirety to any Person unless:









 



-19-



     (a) the successor formed by such consolidation or the survivor of such merger or the
Person that acquires by conveyance, transfer or lease the Company’s properties or assets
substantially as an entirety, as the case may be, shall be a Person organized and existing
under the laws of the United States or any State thereof (including the District of
Columbia), and, if the Company is not such surviving corporation, limited liability company
or partnership, such surviving corporation, limited liability company or partnership shall
have executed and delivered to each holder of any Notes its assumption of the due and
punctual performance and observance of each covenant and condition of this Agreement and the
Notes; and




     (b) immediately before and immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing.


No such conveyance, transfer or lease of the assets and properties of the Company substantially as
an entirety shall have the effect of releasing the Company or any successor corporation, limited
liability company or partnership that shall theretofore have become such in the manner prescribed
in this Section 10.2 from its liability under this Agreement or the Notes.




     10.3. Line of Business.



     The Company will not and will not permit any Material Subsidiary to engage in any business if,
as a result, the general nature of the business in which the Company and its Material Subsidiaries,
taken as a whole, would then be engaged would be substantially changed from the general nature of
the business in which the Company and its Material Subsidiaries, taken as a whole, are engaged on
the date of this Agreement as described in the Memorandum.



     10.4. [Reserved.]



     10.5. Limitation on Consolidated Total Debt.



     The Company will not permit Consolidated Financial Indebtedness, at any time, to exceed 65% of
Consolidated Total Capitalization.



     10.6. Limitation on Issuance of Mortgage Bonds.



     The Company will not issue any mortgage bonds under its Mortgage Indenture and Deed of Trust,
dated January 1, 1933, between the Company and The Bank of New York Mellon, successor trustee (the
“Mortgage”), without making effective provision, and the Company covenants that in any such case
effective provision will be made, whereby the Notes shall be secured by the Mortgage equally and
ratably with all other obligations and indebtedness thereby secured.



     Furthermore, the Company will not create or suffer to exist any first mortgage lien on the
Mortgaged Property (as defined in the Mortgage on the date hereof) other than that of the Mortgage
and other than any lien which would be a Permissible Encumbrance (as defined in the Mortgage on the
date hereof) or a prior lien, without making effective provision, and the









 



-20-



Company covenants that in
any such case effective provision will be made, whereby the Notes shall be secured by such first
mortgage lien equally and ratably with all other obligations and indebtedness thereby secured. For
purposes hereof, “prior lien” shall mean a lien existing on property at the time of the acquisition
of the property by the Company from an unaffiliated third party, the acquisition price having been
reduced by the full amount of the debt or other obligation secured by the lien.



11. EVENTS OF DEFAULT.




     An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:




     (a) the Company defaults in the payment of any principal or Make Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or




     (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or




     (c) the Company defaults in the performance of or compliance with any term contained in
Section 7.1(d) or Section 10.5 or 10.6 inclusive; or




     (d) the Company defaults in the performance of or compliance with any term contained
herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not
remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual
knowledge of such default and (ii) the Company receiving written notice of such default from
any holder of a Note (any such written notice to be identified as a “notice of default” and
to refer specifically to this Section 11(d)); or




     (e) any representation or warranty made in writing by or on behalf of the Company in
this Agreement or in any writing furnished in connection with the transactions contemplated
hereby proves to have been false or incorrect in any material respect on the date as of
which made; or




     (f) (i) the Company or any Significant Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or make-whole
amount or interest on any Indebtedness that is outstanding in an aggregate principal amount
of at least $50,000,000 beyond any period of grace provided with respect thereto, or (ii)
the Company or any Significant Subsidiary is in default in the performance of or compliance
with any term of any evidence of any Indebtedness in an aggregate outstanding principal
amount of at least $50,000,000 or of any mortgage, indenture or other agreement relating
thereto or any other condition exists, and as a consequence of such default or condition
such Indebtedness has become, or has been declared due and payable before its stated
maturity or before its regularly scheduled dates of payment; or









 



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     (g) either the Company or any Significant Subsidiary (i) is generally not paying, or
admits in writing its inability to pay, its debts as they become due, (ii) files, or
consents by answer or otherwise to the filing against it of, a petition for relief or
reorganization or arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency or reorganization or other similar law, (iii)
makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a
custodian, receiver, trustee or liquidator with respect to it or with respect to any
substantial part of its property, (v) is adjudicated as insolvent or to be liquidated,
or (vi) takes corporate action for the purpose of any of the foregoing; or




     (h) a Governmental Authority of competent jurisdiction enters an order appointing,
without consent of the Company or any of its Significant Subsidiaries, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, or constituting an order for relief or approving a
petition for relief or reorganization or any other petition in bankruptcy or for liquidation
or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding up or liquidation of the Company or any of its Significant
Subsidiaries, or any such petition shall be filed against the Company or any of its
Significant Subsidiaries and such petition shall not be dismissed within 60 days; or




     (i) a final judgment or judgments for the payment of money aggregating in excess of
$50,000,000 that is not covered by insurance, performance bonds and the like are rendered
against one or more of the Company and its Significant Subsidiaries and which judgments are
not, within 90 days after entry thereof, bonded, discharged or stayed pending appeal, or are
not discharged within 90 days after the expiration of such stay; or




     (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under Section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under ERISA Section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any
ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of Section
4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
shall exceed $50,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty
or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides post
employment welfare benefits in a manner that would increase the liability of the Company or
any Subsidiary thereunder; and any such event or events described in clauses (i) through
(vi) above, either individually or together with any other such event or events, could
reasonably be expected to have a Material Adverse Effect.









 



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As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in Section 3 of ERISA.




12. REMEDIES ON DEFAULT, ETC.




     12.1. Acceleration.




     (a) If an Event of Default with respect to the Company described in Section 11(g) or
(h) (other than an Event of Default described in clause (i) of Section 11(g) or described in
clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i)
of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become
immediately due and payable.




     (b) If any other Event of Default has occurred and is continuing, the Required Holders
may at any time at its or their option, by notice or notices to the Company, declare all the
Notes then outstanding to be immediately due and payable.




     (c) If any Event of Default described in Section 11(a) or (b) has occurred and is
continuing, any holder or holders of Notes at the time outstanding affected by such Event of
Default may at any time, at its or their option, by notice or notices to the Company,
declare all the Notes held by it or them to be immediately due and payable.



     Upon any Note becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note,
plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (y) the Make Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be immediately due and payable,
in each and every case without presentment, demand, protest or further notice, all of which are
hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note
has the right to maintain its investment in the Notes free from repayment by the Company (except as
herein specifically provided for) and that the provision for payment of a Make Whole Amount by the
Company in the event that the Notes are prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right under such
circumstances.



     12.2. Other Remedies.



     If any Default or Event of Default has occurred and is continuing, and irrespective of whether
any Notes have become or have been declared immediately due and payable under Section 12.1 hereof,
the holder of any Note at the time outstanding may proceed to protect and enforce the rights of
such holder by an action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Note, or for an injunction against
a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.









 



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     12.3. Rescission.



     At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or
(c), the Required Holders, by written notice to the Company, may rescind and annul
any such declaration and its consequences if (a) the Company has paid all overdue interest on
the Notes, all principal of and Make Whole Amount, if any, on any Notes that are due and payable
and are unpaid other than by reason of such declaration, and all interest on such overdue principal
and Make Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest
in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall
have paid any amounts which have become due solely by reason of such declaration, (c) all Events of
Default and Defaults, other than non payment of amounts that have become due solely by reason of
such declaration, have been cured or have been waived pursuant to Section 17 hereof, and (d) no
judgment or decree has been entered for the payment of any monies due pursuant hereto or to the
Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent
Event of Default or Default or impair any right consequent thereon.



     12.4. No Waivers or Election of Remedies, Expenses, Etc.



     No course of dealing and no delay on the part of any holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s
rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note
upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein
or therein or now or hereafter available at law, in equity, by statute or otherwise. Without
limiting the obligations of the Company under Section 15 hereof, the Company will pay to the holder
of each Note on demand such further amount as shall be sufficient to cover all reasonable costs and
expenses of such holder incurred in any enforcement or collection under this Section 12, including,
without limitation, reasonable attorneys’ fees, expenses and disbursements.



13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.




     13.1. Registration of Notes.



     The Company or its agent shall keep at its principal executive office a register for the
registration of Notes and the registration of transfers of Notes. The name and address of each
holder of one or more Notes, each transfer thereof and the name and address of each transferee of
one or more Notes shall be registered in such register. Prior to due presentment for registration
of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as
the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any
notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct copy of the names and
addresses of all registered holders of Notes. The Company may perform the foregoing duties through
a designated agent.









 



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     13.2. Transfer and Exchange of Notes.



     Upon surrender of any Note to the Company at the address and to the attention of the
designated officer (all as specified in Section 18(iii) hereof), for registration of transfer or
exchange (and in the case of a surrender for registration of transfer accompanied by a written
instrument of transfer duly executed by the registered holder of such Note or such holder’s
attorney duly authorized in writing and accompanied by the relevant name, address and other
information for notices of each transferee of such Note or part thereof), within 10 Business Days
thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided
below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such
new Note shall be payable to such Person as such holder may request and shall be substantially in
the form of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which
interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if
no interest shall have been paid thereon. The Company may require payment of a sum sufficient to
cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $100,000, provided that if necessary to
enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in
a denomination of less than $100,000. Any transferee of a Note, by its acceptance of a Note
registered in its name (or the name of its nominee), shall be deemed to have represented that it is
an accredited investor and to have made the representation set forth under Section 6 (other than
the first sentence of Section 6.1).



     13.3. Replacement of Notes.



     Upon receipt by the Company at the address and to the attention of the designated officer (all
as specified in Section 18(iii) hereof) of evidence reasonably satisfactory to it of the ownership
of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case
of an Institutional Investor, notice from such Institutional Investor of such ownership and such
loss, theft, destruction or mutilation), and




     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to
be satisfactory), or




     (b) in the case of mutilation, upon surrender and cancellation thereof,


within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have
been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
destroyed or mutilated Note if no interest shall have been paid thereon.










 



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14. PAYMENTS ON NOTES.




     14.1. Place of Payment.



     Subject to Section 14.2 hereof, payments of principal, Make Whole Amount, if any, and interest
becoming due and payable on the Notes shall be made at the principal office of Wachovia Bank,
National Association. The Company may at any time, by notice to each holder of a Note, change the
place of payment of the Notes so long as such place of payment shall be either the principal office
of the Company in such jurisdiction or the principal office of a bank or trust company in such
jurisdiction.



     14.2. Home Office Payment.



     So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding
anything contained in Section 14.1 hereof or in such Note to the contrary, the Company will pay (or
cause its agent to pay) all sums becoming due on such Note for principal, Make Whole Amount, if
any, and interest by the method and at the address specified for such purpose below such
Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser
shall have from time to time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon, except that following
payment or prepayment in full of any Note, such Purchaser shall surrender such Note for
cancellation, reasonably promptly after any such request, to the Company at its principal executive
office or at the place of payment most recently designated by the Company pursuant to Section 14.1
hereof. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee,
such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon
and the last date to which interest has been paid thereon or surrender such Note to the Company in
exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of
this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any
Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to
such Note as the Purchasers have made in this Section 14.2.



15. EXPENSES, ETC.




     15.1. Transaction Expenses.



     Whether or not the transactions contemplated hereby are consummated, the Company will pay all
costs and expenses (including reasonable attorneys’ fees of the Purchasers’ special counsel and, if
reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and
each other holder of a Note in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not
such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs
and expenses incurred in enforcing or defending (or determining whether or how to enforce or
defend) any rights under this Agreement or the Notes or in
responding to any subpoena or other legal process or informal investigative demand issued in
connection with this Agreement or the Notes, or by reason of being a holder of any Note and









 



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(b) the
costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency
or bankruptcy of the Company or any Subsidiary or in connection with any work out or restructuring
of the transactions contemplated hereby and by the Notes. The Company will pay, and will save each
Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs
or expenses if any, of brokers and finders (other than those, if any, retained by a Purchaser or
other holder of the Notes).



     15.2. Survival.



     The obligations of the Company under this Section 15 will survive the payment or transfer of
any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and
the termination of this Agreement.



16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.




     All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent
holder of a Note, regardless of any investigation made at any time by or on behalf of a Purchaser
or any other holder of a Note. All statements contained in any certificate or other instrument
delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations
and warranties of the Company under this Agreement. Subject to the preceding sentence, this
Agreement and the Notes embody the entire agreement and understanding between the Purchasers and
the Company and supersede all prior agreements and understandings relating to the subject matter
hereof and thereof.



17. AMENDMENT AND WAIVER.




     17.1. Requirements.



     This Agreement and the Notes may be amended, and the observance of any term hereof may be
waived (either retroactively or prospectively), with (and only with) the written consent of the
Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions
of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be
effective as to a Purchaser unless consented to by such Purchaser in writing, and (b) no such
amendment or waiver may, without the written consent of the holder of each Note at the time
outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration
or rescission, change the amount or time of any prepayment or payment of principal of, or reduce
the rate or change the time of payment or method of computation of interest or of the Make-Whole
Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders
of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 8,
11(a), 11(b), 11(g), 11(h), 12 or 17.









 



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     17.2. Solicitation of Holders of Notes.




     (a) Solicitation. The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient information,
sufficiently far in advance of the date a decision is required, to enable such holder to
make an informed and considered decision with respect to any proposed amendment, waiver or
consent in respect of any of the provisions hereof or of the Notes. The Company will
deliver executed or true and correct copies of each amendment, waiver or consent effected
pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly
following the date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.




     (b) Payment. The Company will not directly or indirectly pay or cause to be
paid any remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security or provide other credit support, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of Notes or any
waiver or amendment of any of the terms and provisions hereof unless such remuneration is
concurrently paid, or security is concurrently granted or other credit support concurrently
provided, on the same terms, ratably to each holder of Notes then outstanding even if such
holder did not consent to such waiver or amendment.




     (c) Consent in Contemplation of Transfer. Any consent made pursuant to this
Section 17.2 by the holder of any Note that has transferred or has agreed to transfer such
Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has
agreed to provide such written consent as a condition to such transfer shall be void and of
no force or effect except solely as to such holder, and any amendments effected or waivers
granted or to be effected or granted that would not have been or would not be so effected or
granted but for such consent (and the consents of all other holders of Notes that were
acquired under the same or similar conditions) shall be void and of no force or effect
except solely as to such transferring holder.



     17.3. Binding Effect, Etc.



     Any amendment or waiver consented to as provided in this Section 17 applies equally to all
holders of Notes and is binding upon them and upon each future holder of any Note and upon the
Company without regard to whether such Note has been marked to indicate such amendment or waiver.
No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default
or Event of Default not expressly amended or waived or impair any right consequent thereon. No
course of dealing between the Company and the holder of any Note nor any delay in exercising any
rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein, the term “this Agreement” or “the Agreement” and references thereto shall
mean this Agreement as it may from time to time be amended or supplemented.









 



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     17.4. Notes Held by Company, Etc.



     Solely for the purpose of determining whether the holders of the requisite percentage of the
aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver
or consent to be given under this Agreement or the Notes, or have directed the taking of any action
provided herein or in the Notes to be taken upon the direction of the holders of a specified
percentage of the aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.



18. NOTICES.




     All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified mail with return
receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:




     (i) if to a Purchaser or its nominee, to such Purchaser or nominee at the
address specified for such communications in Schedule A, or at such other address as
such Purchaser or nominee shall have specified to the Company in writing,




     (ii) if to any other holder of any Note, to such holder at such address as such
other holder shall have specified to the Company in writing, or




     (iii) if to the Company, at its address set forth at the beginning hereof to
the attention of Treasurer, or at such other address as the Company shall have
specified to the holder of each Note in writing.


Notices under this Section 18 will be deemed given only when actually received, or when a bona fide
attempt to make such delivery has failed because of a failure of the recipient to accept such
delivery during normal business hours.




19. REPRODUCTION OF DOCUMENTS.




     This Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b) documents received by the
Purchasers at the Closing (except the Notes themselves), and (c) financial statements, certificates
and other information previously or hereafter furnished to the Purchasers, may be reproduced by the
Purchasers by any photographic, photostatic, electronic, digital, or other similar process and the
Purchasers may destroy any original document so reproduced. The Company agrees and stipulates
that, to the extent permitted by applicable law, any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding (whether or not the
original is in existence and whether or not such reproduction was
made by such Purchaser in the regular course of business) and any enlargement, facsimile or
further reproduction of such reproduction shall likewise be admissible in evidence. This









 



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Section
19  shall not prohibit the Company or any other holder of Notes from contesting any such
reproduction to the same extent that it could contest the original, or from introducing evidence to
demonstrate the inaccuracy of any such reproduction.



20. CONFIDENTIAL INFORMATION.




     For the purposes of this Section 20, “Confidential Information” means the information
delivered to a Purchaser by or on behalf of the Company in connection with the transactions
contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was
clearly marked or labeled or otherwise adequately identified when received by such Purchaser as
being confidential information of the Company or such Subsidiary, provided that such term does not
include information that (a) was publicly known or otherwise known to such Purchaser prior to the
time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such
Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such
Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes
financial statements delivered to such Purchaser that are otherwise publicly available. Each
Purchaser will maintain the confidentiality of such Confidential Information in accordance with
procedures adopted by such Purchaser in good faith to protect confidential information of third
parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose
Confidential Information to (i) its directors, trustees, officers, employees, agents, attorneys and
affiliates (to the extent such disclosure reasonably relates to the administration of the
investment represented by its Notes), (ii) its financial advisors and other professional advisors
who agree to hold confidential the Confidential Information substantially in accordance with the
terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to
which such Purchaser sells or offers to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such Confidential Information
to be bound by the provisions of this Section 20), (v) any Person from which such Purchaser offers
to purchase any security of the Company (if such Person has agreed in writing prior to its receipt
of such Confidential Information to be bound by the provisions of this Section 20), (vi) any
federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or
the SVO or, in each case, any similar organization, or any nationally recognized rating agency that
requires access to information about such Purchaser’s investment portfolio, or (viii) any other
Person to which such delivery or disclosure may be necessary or appropriate (w) to effect
compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to
any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser
is a party or (z) if an Event of Default has occurred and is continuing, to the extent such
Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and
this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed
to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to
this Agreement. On reasonable request by the Company in connection with the delivery to any holder
of a Note of information required to be delivered to such holder under this Agreement or requested
by such holder (other
than a holder that is a party to this Agreement or its nominee), such holder will enter into
an agreement with the Company embodying the provisions of this Section 20.









 



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21. SUBSTITUTION OF PURCHASER.




     Each Purchaser shall have the right to substitute any one of its Affiliates as the Purchaser
of the Notes that such Purchaser has agreed to purchase hereunder, by written notice to the
Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such
Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such
Affiliate of the accuracy with respect to it of the representations set forth in Section 6 hereof.
Upon receipt of such notice, wherever the word “Purchaser” is used in this Agreement (other than in
this Section 21), such word shall be deemed to refer to such Affiliate in lieu of such original
Purchaser. In the event that such Affiliate is so substituted as a Purchaser hereunder and such
Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such
Affiliate, upon receipt by the Company of notice of such transfer, wherever the word “Purchaser” is
used in this Agreement (other than in this Section 21), such word shall no longer be deemed to
refer to such Affiliate, but shall refer to such original Purchaser, and such original Purchaser
shall have all the rights of an original holder of the Notes under this Agreement.



22. MISCELLANEOUS.




     22.1. Successors and Assigns.



     All covenants and other agreements contained in this Agreement by or on behalf of any of the
parties hereto bind and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or not.



     22.2. Payments Due on Non Business Days.



     Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting
the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as
the date fixed for such prepayment), any payment of principal of or Make Whole Amount or interest
on any Note that is due on a date other than a Business Day shall be made on the next succeeding
Business Day without including the additional days elapsed in the computation of the interest
payable on such next succeeding Business Day; provided that if the maturity date of any Note is a
date other than a Business Day, the payment otherwise due on such maturity date shall be made on
the next succeeding Business Day and shall include the additional days elapsed in the computation
of interest payable on such next succeeding Business Day.



     22.3. Accounting Terms.



     All accounting terms used herein which are not expressly defined in this Agreement have the
meanings respectively given to them in accordance with GAAP. Except as otherwise specifically
provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance
with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP. For
purposes of determining compliance with Section 10.5 hereof, any election by the Company to measure
an item of Indebtedness using fair value (as permitted by Statement of









 



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Financial Accounting
Standards No. 159 or any similar accounting standard) shall be disregarded and such determination
shall be made instead using the par value of such Indebtedness.



     22.4. Severability.



     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall (to the full extent permitted by law) not invalidate or render
unenforceable such provision in any other jurisdiction.



     22.5. Construction, Etc.



     Each covenant contained herein shall be construed (absent express provision to the contrary)
as being independent of each other covenant contained herein, so that compliance with any one
covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with
any other covenant. Where any provision herein refers to action to be taken by any Person, or
which such Person is prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person.



     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.



     22.6. Counterparts.



     This Agreement may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.



     22.7. Governing Law.



     This Agreement and the Notes shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.



     22.8. Jurisdiction and Process; Waiver of Jury Trial.




     (a) The Company irrevocably submits to the non exclusive jurisdiction of any New York
State or federal court sitting in the Borough of Manhattan, The City of New York, over any
suit, action or proceeding arising out of or relating to this Agreement or the Notes. To
the fullest extent permitted by applicable law, the Company irrevocably waives and agrees
not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject
to the jurisdiction of any such court, any objection that it may now or hereafter have to
the laying of the venue of any such suit, action or proceeding brought in









 



-32-



any such court and
any claim that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum.




     (b) The Company consents to process being served by or on behalf of any holder of Notes
in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a
copy thereof by registered or certified mail (or any substantially similar form of mail),
postage prepaid, return receipt requested, to it at its address specified in Section 18 or
at such other address of which such holder shall then have been notified pursuant to said
Section. The Company agrees that such service upon receipt (i) shall be deemed in every
respect effective service of process upon it in any such suit, action or proceeding and (ii)
shall, to the fullest extent permitted by applicable law, be taken and held to be valid
personal service upon and personal delivery to it. Notices hereunder shall be conclusively
presumed received as evidenced by a delivery receipt furnished by the United States Postal
Service or any reputable commercial delivery service.




     (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to
serve process in any manner permitted by law, or limit any right that the holders of any of
the Notes may have to bring proceedings against the Company in the courts of any appropriate
jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in
any other jurisdiction.




     (d) The parties hereto hereby waive trial by jury in any action brought on or with
respect to this Agreement, the Notes or any other document executed in connection herewith
or therewith.



* * * * *










 



 




     If the Purchasers are in agreement with the foregoing, please sign the form of agreement on
the accompanying counterpart of this Agreement and return it to the Company, whereupon the
foregoing shall become a binding agreement between the Purchasers and the Company.



	 	 	 	 	 
	 	Very truly yours,




Washington Gas Light Company

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 









 



 

	 	 	 	 	 




The foregoing is hereby accepted and agreed

to as of the date thereof.




	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 




 











 





SCHEDULE B




Defined Terms




     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:



     “Affiliate” of any Person means any other Person directly or indirectly controlling,
controlled by or under common control with such Person. A Person shall be deemed to control another
Person if the controlling Person owns 10% or more of any class of voting securities (or other
ownership interests) of the controlled Person or possesses, directly or indirectly, the power to
direct or cause the direction of the management or policies of the controlled Person, whether
through ownership of stock, by contract or otherwise.



     “Anti Terrorism Order” means Executive Order No. 13,224 of September 23, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49,079 (2001), as amended.



     “applicable law” means (i) all applicable common law and principles of equity and (i) all
applicable provisions of all (a) constitutions, statutes, rules, regulations and orders of
Governmental Authorities, (b) Governmental Approvals and Governmental Registrations and (c) orders,
decisions, judgments and decrees.



     “Business Day” means a day other than a Saturday, Sunday or other day on which banks in New
York City are authorized to close.



     “Capitalized Lease” means any lease of Property which would be capitalized on a balance sheet
of such Person prepared in accordance with GAAP.



     “Capitalized Lease Obligations” means the amount of the obligations under Capitalized Leases
which would be shown as a liability on a balance sheet prepared in accordance with GAAP.



     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980.



     “Closing” is defined in Section 3.



     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.



     “Company” means Washington Gas Light Company, a District of Columbia and Virginia corporation
or any successor that becomes such in the manner prescribed in Section 10.2.



     “Confidential Information” is defined in Section 20.



 









 





     “Consolidated Financial Indebtedness” means at any time the Financial Indebtedness of the
Company and its Subsidiaries calculated on a consolidated basis as of such time.



     “Consolidated Net Worth” means at any time the consolidated stockholders’ equity of the
Company and its Subsidiaries calculated on a consolidated basis as of such time.



     “Consolidated Total Capitalization” means at any time the sum of Consolidated Financial
Indebtedness and Consolidated Net Worth, each calculated at such time.



     “Contingent Obligation” of a Person means any agreement, Contract, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide
funds for the payment of, or otherwise becomes or is contingently liable upon, the obligation or
liability of any other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating agreement, take or pay
contract or the obligations of any such Person as general partner of a partnership with respect to
the liabilities of the partnership.



     “Contract” means (i) any agreement, including an indenture, lease or license, (ii) any deed or
other instrument of conveyance, (iii) any certificate of incorporation or charter and (iv) any
by-law.



     “Controlled Group” means all members of a controlled group of corporations and all members of
a group of trades or businesses (whether or not incorporated) under common control which, together
with the Company, are treated as a single employer under Section 414(b) or 414(c) of the Code or
Section 4001 of ERISA.



     “Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.



     “Default Rate” means that rate of interest that is the greater of (i) 2% per annum above the
rate of interest stated in clause (a) of the first paragraph of the Notes or (ii) 2% over the rate
of interest publicly announced by JPMorgan Chase Bank, NA in New York, New York as its “base” or
“prime” rate.



     “Disclosure Documents” is defined in Section 5.3.



     “Electronic Delivery” is defined in Section 7.1(a).



     “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to Hazardous Materials.



 









 





     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect.



     “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated
as a single employer together with the Company under Section 414 of the Code.



     “Event of Default” is defined in Section 11.



     “Exchange Act” means the Securities Exchange Act of 1934, as amended.



     “Financial Indebtedness” of a Person means such Person’s (i) obligations for borrowed money
which, in accordance with GAAP, would be shown as short-term debt on a consolidated balance sheet
of such Person, including obligations under notes, commercial paper, acceptances and other
short-term instruments, and (ii) obligations for borrowed money which, in accordance with GAAP,
would be shown as long-term debt (including current maturities) on a consolidated balance sheet of
such Person.



     “Form 10-Q” is defined in Section 7.1(a).



     “Form 10-K” is defined in Section 7.1(b).



     “GAAP” means generally accepted accounting principles as in effect from time to time in the
United States of America.



     “Governmental Approval” means any authorization, consent, approval, order, license (or the
like) or exemption (or the like) of any Governmental Authority.



     “Governmental Authority” means




(a) the government of




(i) the United States of America or any State or other political subdivision
thereof, or




(ii) any other jurisdiction in which the Company or any Subsidiary conducts all or
any part of its business, or which asserts jurisdiction over any part of the
Company’s business or over any properties of the Company or any Subsidiary, or




(b) any court or other entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.



     “Governmental Registration” means any registration or filing (or the like) with, or report or
notice (or the like) to, any Governmental Authority.



 









 





     “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other
Person in any manner, whether directly or indirectly, including (without limitation) obligations
incurred through an agreement, contingent or otherwise, by such Person:




     (a) to purchase such indebtedness or obligation or any property constituting security
therefor;




     (b) to advance or supply funds (i) for the purchase or payment of such indebtedness or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such indebtedness or obligation;




     (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such indebtedness or obligation of the ability of any other Person
to make payment of the indebtedness or obligation; or




     (d) otherwise to assure the owner of such indebtedness or obligation against loss in
respect thereof.


In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the
indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be
direct obligations of such obligor.




     “Hazardous Material” means: any “hazardous substance”, as defined by CERCLA; any petroleum
product; or any pollutant or contaminant or hazardous, dangerous or toxic chemical, material or
substance within the meaning of any other Environmental Law.



     “holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.



     “Indebtedness” of a Person means such Person’s (i) obligations for borrowed money, (ii)
obligations representing the deferred purchase price of Property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade), (iii) obligations, whether or not assumed, secured by Liens on, or payable out of the
proceeds or production from, Property now or hereafter owned or acquired by such Person, (iv)
obligations which are evidenced by notes, acceptances, or other instruments, (v) obligations of
such Person to purchase securities or other Property arising out of or in connection with the sale
of the same or substantially similar securities or Property, (vi) Capitalized Lease Obligations,
(vii) any other obligation for borrowed money or other financial accommodation which in accordance
with GAAP would be shown as a liability on the consolidated balance sheet of such Person, (viii)
Contingent Obligations in respect of any type of obligation described in any of the other clauses
of this definition, (ix) obligations in respect of Letters of Credit, (x) Operating Lease
Obligations, (xi) obligations in respect of Sale and Leaseback Transactions and (xii) Off-Balance
Sheet Liabilities.



 









 





     “Indenture” means the Indenture between Washington Gas Light Company and The Bank of New York,
as Trustee, dated September 1, 1991, as supplemented on September 1, 1993.



     “INHAM Exemption” is defined in Section 6.2(e).



     “Institutional Investor” means an institutional “accredited investor” (as defined in
subparagraphs (1), (2), (3) or (7) of paragraph (a) of Rule 501 under the Securities Act), that is
also either (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or
more of its affiliates) more than 5% of the aggregate principal amount of the Notes then
outstanding, (c) any bank, trust company, savings and loan association or other financial
institution, any pension plan, any investment company, any insurance company, any broker or dealer,
or any other similar financial institution or entity, regardless of legal form, or (d) any Related
Fund of any holder of any Note.



     “Letter of Credit” of a Person means a letter of credit or similar instrument which is issued
upon the application of such Person or upon which such Person is an account party or for which such
Person is in any way liable.



     “Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title
retention agreement).



     “Make Whole Amount” is defined in Section 8.6.



     “Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Subsidiaries taken as a whole.



     “Material Adverse Effect” means any effect, resulting from any event or circumstance
whatsoever, which will, or is reasonably likely to, have a material adverse effect on the financial
condition, operations, assets, business, properties or prospects of the Company and its
Subsidiaries, taken as a whole, on the ability of the Company to perform its obligations under this
Agreement, or on the validity or enforceability of this Agreement.



     “Material Subsidiary” means at any time with respect to a Person, a Subsidiary, if any, of
such Person, the consolidated assets of which exceed at such time 15% of the consolidated assets of
such Person and its Subsidiaries, if any, determined on a consolidated basis.



     “Memorandum” is defined in Section 5.3.



     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
Section 4001(a)(3) of ERISA).



     “NAIC Annual Statement” is defined in Section 6.2(a).



 









 





     “Notes” is defined in Section 1.



     “Off-Balance Sheet Liability” of a Person means (i) any repurchase obligation or liability of
such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability
under any Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any liability
under any so-called “synthetic lease” transaction entered into by such Person, or (iv) any
obligation arising with respect to any other transaction which is the functional equivalent of, or
takes the place of, borrowing, but which does not constitute a liability on the balance sheets of
such Person.



     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.



     “Operating Lease” means any lease of Property (other than a Capitalized Lease) which has an
original term (including any required renewals and any renewals effective at the option of the
lessor) of one year or more.



     “Operating Lease Obligations” means, as at any date of determination, the amount obtained by
aggregating the present values, determined in the case of each particular Operating Lease by
applying a discount rate (which discount rate shall equal the discount rate which would be applied
under GAAP if such Operating Lease were a Capitalized Lease) from the date on which each fixed
lease payment is due under such Operating Lease to such date of determination, of all fixed lease
payments due under all Operating Leases of the Company and its Subsidiaries.



     “PBGC” means the Pension Benefit Guaranty Corporation.



     “pension plan” means a “pension plan,” as such term is defined in section 3(2) of ERISA, which
is subject to Title IV of ERISA, and to which the Company or any corporation, trade or business
that is, along with the Company, a member of a Controlled Group, may have liability, including any
liability by reason of having been a substantial employer within the meaning of section 4063 of
ERISA at any time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under section 4069 of ERISA.



     “Person” means any natural person, corporation, firm, joint venture, partnership, limited
liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.



     “Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to Title
I of ERISA that is or, within the preceding five years, has been established or maintained, or to
which contributions are or, within the preceding five years, have been made or required to be made,
by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate
may have any liability.



     “Property” means, unless otherwise specifically limited, real or personal property of any
kind, tangible or intangible, choate or inchoate.



 









 





     “PTE” is defined in Section 6.2(a).



     “Purchaser” is defined in the first paragraph of this Agreement.



     “QPAM Exemption” is defined in Section 6.2(d).



     “Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer”
within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.



     “Related Fund” means, with respect to any holder of any Note, any fund or entity that (i)
invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same
investment advisor as such holder or by an affiliate of such holder or such investment advisor.



     “Reportable Event” means a reportable event, as defined in Section 4043 of ERISA and the
regulations issued under such section, with respect to a Plan, excluding, however, such events as
to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event; provided, however, that a
failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement
in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.



     “Required Holders” means, at any time, the holders of at least 51% in principal amount of the
Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).



     “Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.



     “Sale and Leaseback Transaction” means any sale or other transfer of Property by any Person
with the intent to lease such Property as lessee.



     “SEC” shall mean the Securities and Exchange Commission of the United States, or any successor
thereto.



     “Securities” or “Security” shall have the meaning specified in Section 2(1) of the Securities
Act.



     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.



     “Senior Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company.



     “Significant Subsidiary” means at any time any Subsidiary that would at such time constitute a
“significant subsidiary” (as such term is defined in Regulation S-X of the SEC as in effect on the
date of the Closing) of the Company.



 









 





     “Source” is defined in Section 6.2.



     “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities
having the ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture
or similar business organization more than 50% of the ownership interests having the ordinary
voting power of which shall at the time be so owned or controlled. Unless otherwise expressly
provided, all references herein to a “Subsidiary” shall mean a Subsidiary of the Company.



     “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.



     “USA Patriot Act” means United States Public Law 107 56 of the United States of America,
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.



     “Wholly Owned Subsidiary” means, at any time, any Subsidiary all of the equity interests
(except directors’ qualifying shares) and voting interests of which are owned by any one or more of
the Company and the Company’s other Wholly Owned Subsidiaries at such time.