Exhibit 10.03


 




EXECUTION COPY





 


$700,000,000


 


 


CREDIT AGREEMENT


 


 


among


 


 


PUBLIC SERVICE COMPANY OF COLORADO,


 


as Borrower,


 


 


The Several Lenders from
Time to Time Parties Hereto,


 


 


BMO CAPITAL MARKETS,


 


 


THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH, and


 


 


KEYBANK NATIONAL ASSOCIATION


 


as Documentation Agents,


 


 


BARCLAYS BANK PLC,


 


as Syndication Agent, and


 


 


JPMORGAN CHASE BANK, N.A.,


 


as Administrative Agent


 


 


Dated as Of December 14,
2006




 





 


 


J.P. MORGAN SECURITIES INC.
and BARCLAYS CAPITAL,




as Joint Lead Arrangers and Bookrunners


 

















 


TABLE OF CONTENTS


 


	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
  1

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF REVOLVING COMMITMENTS

  	
  16

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Revolving
  Commitments

  	
  16

  
	
  2.2

  	
  Procedure
  for Revolving Loan Borrowing

  	
  17

  
	
  2.3

  	
  Fees

  	
  17

  
	
  2.4

  	
  Termination
  or Reduction of Revolving Commitments

  	
  18

  
	
  2.5

  	
  Optional
  Prepayments

  	
  18

  
	
  2.6

  	
  Conversion
  and Continuation Options

  	
  18

  
	
  2.7

  	
  Limitations
  on Eurodollar Tranches

  	
  19

  
	
  2.8

  	
  Interest
  Rates and Payment Dates

  	
  19

  
	
  2.9

  	
  Computation
  of Interest and Fees

  	
  19

  
	
  2.10

  	
  Inability
  to Determine Interest Rate

  	
  19

  
	
  2.11

  	
  Pro
  Rata Treatment and Payments

  	
  20

  
	
  2.12

  	
  Requirements
  of Law

  	
  21

  
	
  2.13

  	
  Taxes

  	
  22

  
	
  2.14

  	
  Indemnity

  	
  24

  
	
  2.15

  	
  Change
  of Lending Office

  	
  24

  
	
  2.16

  	
  Replacement
  of Lenders

  	
  24

  
	
  2.17

  	
  Extension
  of Revolving Termination Date

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
  25

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  L/C
  Commitment

  	
  25

  
	
  3.2

  	
  Procedure
  for Issuance of Letter of Credit

  	
  26

  
	
  3.3

  	
  Fees
  and Other Charges

  	
  26

  
	
  3.4

  	
  L/C
  Participations

  	
  26

  
	
  3.5

  	
  Reimbursement
  Obligation of the Borrower

  	
  27

  
	
  3.6

  	
  Obligations
  Absolute

  	
  27

  
	
  3.7

  	
  Letter
  of Credit Payments

  	
  28

  
	
  3.8

  	
  Applications

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Financial
  Condition

  	
  28

  
	
  4.2

  	
  No
  Change

  	
  29

  
	
  4.3

  	
  Existence;
  Compliance with Law

  	
  29

  
	
  4.4

  	
  Power;
  Authorization; Enforceable Obligations

  	
  29

  
	
  4.5

  	
  No
  Legal Bar

  	
  29

  
	
  4.6

  	
  Litigation

  	
  29

  



 


 

















 


	
  4.7

  	
  Ownership
  of Property; Liens

  	
  30

  
	
  4.8

  	
  Taxes

  	
  30

  
	
  4.9

  	
  Federal
  Regulations

  	
  30

  
	
  4.10

  	
  ERISA

  	
  30

  
	
  4.11

  	
  Investment
  Company Act; Other Regulations

  	
  30

  
	
  4.12

  	
  Use
  of Proceeds

  	
  31

  
	
  4.13

  	
  Accuracy
  of Information, etc

  	
  31

  
	
  4.14

  	
  Solvency

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS PRECEDENT

  	
  31

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Conditions
  to Initial Extension of Credit

  	
  31

  
	
  5.2

  	
  Conditions
  to Each Extension of Credit

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
  32

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial
  Statements

  	
  32

  
	
  6.2

  	
  Certificates;
  Other Information

  	
  33

  
	
  6.3

  	
  Payment
  of Obligations and Taxes

  	
  33

  
	
  6.4

  	
  Maintenance
  of Existence; Compliance

  	
  34

  
	
  6.5

  	
  Maintenance
  of Property; Insurance

  	
  34

  
	
  6.6

  	
  Inspection
  of Property; Books and Records; Discussions

  	
  34

  
	
  6.7

  	
  Notices

  	
  34

  
	
  6.8

  	
  Ownership
  of Significant Subsidiaries

  	
  35

  
	
  6.9

  	
  Scope
  of Business

  	
  35

  
	
  6.10

  	
  Significant
  Subsidiaries

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  NEGATIVE COVENANTS

  	
  35

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Ratio
  of Funded Debt to Total Capital

  	
  35

  
	
  7.2

  	
  Liens

  	
  35

  
	
  7.3

  	
  Fundamental
  Changes

  	
  36

  
	
  7.4

  	
  Disposition
  of Property

  	
  36

  
	
  7.5

  	
  Transactions
  with Affiliates

  	
  36

  
	
  7.6

  	
  Swap
  Agreements

  	
  36

  
	
  7.7

  	
  Clauses
  Restricting Subsidiary Distributions

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  THE AGENTS

  	
  39

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
  39

  
	
  9.2

  	
  Delegation
  of Duties

  	
  39

  
	
  9.3

  	
  Exculpatory
  Provisions

  	
  39

  
	
  9.4

  	
  Reliance
  by Administrative Agent

  	
  40

  
	
  9.5

  	
  Notice
  of Default

  	
  40

  
	
  9.6

  	
  Non-Reliance
  on Agents and Other Lenders

  	
  40

  
	
  9.7

  	
  Indemnification

  	
  41

  



 

















 


	
  9.8

  	
  Agent
  in Its Individual Capacity

  	
  41

  
	
  9.9

  	
  Successor
  Administrative Agent

  	
  41

  
	
  9.10

  	
  Documentation
  Agents and Syndication Agents

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
  42

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendments
  and Waivers

  	
  42

  
	
  10.2

  	
  Notices

  	
  42

  
	
  10.3

  	
  No
  Waiver; Cumulative Remedies

  	
  44

  
	
  10.4

  	
  Survival
  of Representations and Warranties

  	
  44

  
	
  10.5

  	
  Payment
  of Expenses and Taxes

  	
  44

  
	
  10.6

  	
  Successors
  and Assigns; Participations and Assignments

  	
  45

  
	
  10.7

  	
  Adjustments;
  Set-off

  	
  47

  
	
  10.8

  	
  Counterparts

  	
  47

  
	
  10.9

  	
  Severability

  	
  47

  
	
  10.10

  	
  Integration

  	
  48

  
	
  10.11

  	
  GOVERNING LAW

  	
  48

  
	
  10.12

  	
  Submission
  To Jurisdiction; Waivers

  	
  48

  
	
  10.13

  	
  Acknowledgements

  	
  48

  
	
  10.14

  	
  Confidentiality

  	
  49

  
	
  10.15

  	
  WAIVERS OF JURY TRIAL

  	
  49

  
	
  10.16

  	
  Delivery
  of Addenda

  	
  49

  
	
  10.17

  	
  USA
  Patriot Act Notice

  	
  49

  
	
  10.18

  	
  Existing
  Credit Agreement

  	
  49

  



 

















 


SCHEDULES:


 


	
  1.1A

  	
   

  	
  Revolving
  Commitments

  
	
  1.1B

  	
   

  	
  Existing
  Letters of Credit

  
	
  4.1

  	
   

  	
  Financial
  Condition

  
	
  4.2

  	
   

  	
  No
  Change

  
	
  4.6

  	
   

  	
  Litigation

  
	
  4.7

  	
   

  	
  Ownership
  of Property; Liens

  
	
  7.2

  	
   

  	
  Existing
  Liens

  



 


EXHIBITS:


 


	
  A

  	
   

  	
  Form of
  Closing Certificate

  
	
  B

  	
   

  	
  Form of
  Assignment and Assumption

  
	
  C

  	
   

  	
  Form of
  Exemption Certificate

  
	
  D

  	
   

  	
  Form of
  Addendum

  
	
  E-1

  	
   

  	
  Form of
  New Lender Supplement

  
	
  E-2

  	
   

  	
  Form of
  Increased Revolving Commitment Activation Notice

  
	
  F-1

  	
   

  	
  Form of
  Extension Request

  
	
  F-2

  	
   

  	
  Form of
  Continuation Notice

  



 
















 


CREDIT AGREEMENT (this “Agreement”), dated as
of December 14, 2006, among PUBLIC SERVICE COMPANY OF COLORADO, a Colorado
corporation (the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders
BMO CAPITAL MARKETS, THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH, and
KEYBANK NATIONAL ASSOCIATION as documentation agents (in such capacity, the “Documentation
Agents”), BARCLAYS BANK PLC, as syndication agent (in such capacity, the “Syndication
Agent”), and JPMORGAN CHASE BANK, N.A., as administrative agent.


 


The
parties hereto hereby agree as follows:


 


SECTION 1.           DEFINITIONS


 


1.1           Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.


 


“ABR”: 
for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on
such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1⁄2 of 1%.  For purposes hereof, “Prime
Rate” shall mean the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its
principal office in New York City (the Prime Rate not being intended to be the
lowest rate of interest charged by JPMorgan Chase Bank, N.A. in connection with
extensions of credit to debtors).  Any
change in the ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the
effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.


 


“ABR Loans”: 
Revolving Loans the rate of interest applicable to which is based upon
the ABR.


 


“Addendum”: 
an instrument, substantially in the form of Exhibit D, by which a
Lender becomes a party to this Agreement as of the Closing Date.


 


“Administrative Agent”:  JPMorgan Chase Bank, N.A., together with its
affiliates, as an arranger of the Revolving Commitments and as the administrative
agent for the Lenders under this Agreement and the other Loan Documents,
together with any of its successors.


 


“Affiliate”: 
as to any Person, any other Person that, directly or indirectly, is in
Control of, is Controlled by, or is under common Control with, such Person.


 


“Agents”: 
the collective reference to the Syndication Agent, the Documentation
Agents and the Administrative Agent.


 


“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to the amount of such Lender’s Revolving Commitment then in effect
or, if the Revolving Commitments have been terminated, the amount of such
Lender’s Revolving Extensions of Credit then outstanding.


 


“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.


 


“Agreement”: 
as defined in the preamble hereto.


 

















 


“Applicable Margin”:  The rate per annum set forth under the
relevant column heading below based on the applicable Debt Rating:


 


	
  Level

  	
   

  	
  Debt Rating

  	
   

  	
  Commitment

  Fee

  	
   

  	
  ABR

  Loans

  	
   

  	
  Eurodollar

  Loans/

  Letters of Credit

  	
   

  
	
  I

  	
   

  	
  >A/A2/A

  	
   

  	
  0.05

  	
  %

  	
  0

  	
  %

  	
  0.20

  	
  %

  
	
  II

  	
   

  	
  A-/A3/A-

  	
   

  	
  0.06

  	
  %

  	
  0

  	
  %

  	
  0.25

  	
  %

  
	
  III

  	
   

  	
  BBB+/Baa1/BBB+

  	
   

  	
  0.08

  	
  %

  	
  0

  	
  %

  	
  0.35

  	
  %

  
	
  IV

  	
   

  	
  BBB/Baa2/BBB

  	
   

  	
  0.10

  	
  %

  	
  0

  	
  %

  	
  0.45

  	
  %

  
	
  V

  	
   

  	
  BBB-/Baa3/BBB-

  	
   

  	
  0.125

  	
  %

  	
  0

  	
  %

  	
  0.60

  	
  %

  
	
  VI

  	
   

  	
  <BB+/Ba1/BB+

  	
   

  	
  0.175

  	
  %

  	
  0

  	
  %

  	
  0.875

  	
  %

  



 


provided that for each
Excess Utilization Day, the Applicable Margin set forth above on such day shall
be increased by 0.05% for Eurodollar Loans and Letters of Credit.


 


For
purposes of this definition, “Debt Rating” means, as of any date of
determination, the rating as determined by S&P, Moody’s or Fitch
(collectively, the “Debt Ratings”) of the Borrower’s senior unsecured
non-credit enhanced long-term indebtedness for borrowed money; provided
that (x) at any time that Debt Ratings are available from each of S&P,
Moody’s and Fitch and there is a split among such Debt Ratings, then (i) if
any two of such Debt Ratings are in the same level, such level shall apply or (ii) if
each of such Debt Ratings is in a different level, the level that is the middle
level shall apply and (y) at any time that Debt Ratings are available only
from any two of S&P, Moody’s and Fitch and there is a split in such Debt
Ratings, then the higher* of such Debt Ratings shall apply, unless there
is a split in Debt Ratings of more than one level, in which case the level that
is one level higher than the lower Debt Rating shall apply. The Debt Ratings
shall be determined from the most recent public announcement of any changes in
the Debt Ratings.  If the rating system
of S&P, Moody’s or Fitch shall change, the Borrower and the Administrative
Agent shall negotiate in good faith to amend this definition to reflect such
changed rating system and, pending the effectiveness of such amendment (which
shall require the approval of the Required Lenders), the Debt Rating shall be
determined by reference to the rating most recently in effect prior to such
change.


 


“Application”:  an application, in such form as the
applicable Issuing Lender may specify from time to time, requesting such
Issuing Lender to open a Letter of Credit.


 


“Assignee”: 
as defined in Section 10.6(b).


 


“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit B.


 






*  It being understood and agreed, by way of
example, that a Debt Rating of A– is one level higher than a Debt Rating of
BBB+.


 


2

















 


“Available Revolving Commitment”:  as to any Lender at any time, an amount equal
to the excess, if any, of (a) such Lender’s Revolving Commitment then in
effect over (b) such Lender’s Revolving Extensions of Credit then
outstanding.


 


“Benefitted Lender”:  as defined in Section 10.7(a).


 


“Board”: 
the Board of Governors of the Federal Reserve System of the United
States (or any successor).


 


“Borrower”: 
as defined in the preamble hereto.


 


“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the Lenders to make Revolving Loans
hereunder.


 


“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.


 


“Capital Lease Obligations”:  as to any Person, the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP and, for the purposes of this
Agreement, the amount of such obligations at any time shall be the capitalized
amount thereof at such time determined in accordance with GAAP.


 


“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.


 


“Change in Control”:  Xcel Energy Inc. ceasing to directly own,
beneficially and of record, 100% of each class of issued and outstanding common
stock of the Borrower free and clear of all Liens.


 


“Closing Date”:  the date on which the conditions precedent
set forth in Section 5.1 shall have been satisfied, which date
is December 14, 2006.


 


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


 


“COLI
Litigation”:  the litigation related
to the matters disclosed in Note 3 to the Consolidated Financial Statements
under the heading “Tax Matters — Corporate-Owned Life Insurance” in the Xcel
Energy Inc. Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2006.


 


“Commodity Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to,
commodities.


 


3

















 


“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001
of ERISA or is part of a group that includes the Borrower and that is treated
as a single employer under Section 414 of the Code.


 


“Confidential Information Memorandum”:  the Confidential Information Memorandum dated
November 2006 and furnished to certain Lenders.


 


“Continuation Notice”:  as defined in Section 2.17(a).


 


“Continuing Lender”:  as defined in Section 2.17(a).


 


“Contractual Obligation”:  as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.


 


“Control”: 
the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.


 


“Debt Rating”:  as defined in the definition of “Applicable
Margin.”


 


“Default”: 
any of the events specified in Section 8, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.


 


“Designated Significant Subsidiary”:  any Significant Subsidiary designated as such
by the Borrower in accordance with Section 6.10, so long as such
designation shall not have been revoked pursuant to Section 6.10.


 


“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, conveyance, transfer or other disposition
thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.


 


“Documentation Agents”:  as defined in the preamble hereto.


 


“Dollars” and “$”:  dollars in lawful currency of the United
States.


 


“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect.


 


“ERISA”: 
the Employee Retirement Income Security Act of 1974, as amended from
time to time.


 


“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurodollar Loan,
the aggregate (without duplication) of the maximum rates (expressed as a
decimal fraction) of reserve requirements in effect on such day (including
basic, supplemental, marginal and emergency reserves) under any regulations of
the Board or other Governmental Authority having jurisdiction with respect
thereto dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as 


 


4

















 


“Eurocurrency Liabilities”
in Regulation D of the Board) maintained by a member bank of the Federal
Reserve System.


 


“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page 3750
of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the
Telerate screen (or otherwise on such screen), the “Eurodollar Base Rate”
shall be determined by reference to such other comparable publicly available
service for displaying eurodollar rates as may be selected by the
Administrative Agent or, in the absence of such availability, by reference to
the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., New York City time, two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where its
eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.


 


“Eurodollar Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.


 


“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):


 


	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency Reserve Requirements

  



 


“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
the then current Interest Periods with respect to all of which begin on the
same date and end on the same later date (whether or not such Revolving Loans
shall originally have been made on the same day).


 


“Event of Default”:  any of the events specified in Section 8,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.


 


“Excess Utilization Day”:  each day on which the Total Revolving
Extensions of Credit on such day exceed 50% of the Total Revolving Commitments
on such day.


 


“Existing Credit Agreement”:  the Credit Agreement, dated as of April 21,
2005, among the Borrower, JPMorgan Chase Bank, N.A., as administrative agent,
and the lenders party thereto.


 


“Existing Letters of Credit” means the
letters of credit set forth on Schedule 1.1B that have been issued prior to the
Closing Date by JPMorgan Chase Bank, N.A.


 


“Extension Request”:  as defined in Section 2.17(a).


 


“Federal Funds Effective Rate”:  for any day, the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
of the quotations for the day of such transactions received by JPMorgan Chase
Bank, N.A. from three federal funds brokers of recognized standing selected by
it.


 


5

















 


“Federal Power Act”:  the Federal Power Act, as amended from time to
time.


 


“Fee Payment Date”:  (a) the third Business Day following the
last day of each March, June, September and December and (b) the
last day of the Revolving Commitment Period.


 


“FERC”: 
the Federal Energy Regulatory Commission and any successor thereto.


 


“Fitch”: 
Fitch IBCA, Inc. and any successor thereto


 


“Funded Debt”:  of any Person at any date, without
duplication, (i) all indebtedness of such Person for borrowed money; (ii) the
deferred and unpaid balance of the purchase price owing by such Person on
account of any assets or services purchased (other than trade payables and
other accrued liabilities incurred in the ordinary course of business that are not
overdue by more than 180 days unless being contested in good faith) if such
purchase price is (A) due more than nine months from the date of
incurrence of the obligation in respect thereof or (B) evidenced by a note
or a similar written instrument; (iii) all Capital Lease Obligations of
such Person; (iv) all obligations of such Person evidenced by notes,
bonds, debentures or other similar written instruments; (v) any
non-contingent obligation of such Person in respect of  letters of credit and bankers’ acceptances
issued for the account of such Person (other than such letters of credit,
bankers’ acceptances and drafts for the purchase price of assets or services to
the extent such purchase price is excluded from clause (ii) above); (vi) guaranty
obligations of such Person with respect to indebtedness for borrowed money of
another Person (including Affiliates); (vii) all Off-Balance Sheet
Liabilities of such Person; and (viii) all obligations of the kind
referred to in clauses (i) through (vii) above secured by (or for
which the holder of such obligation has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including accounts and
contract rights) owned by such Person, whether or not such Person has assumed
or become liable for the payment of such obligation; provided, however,
that in no event shall any calculation of Funded Debt of the Borrower include
deferred taxes; provided, further, that (x) there shall be
excluded from “Funded Debt” an aggregate principal amount of Non-Recourse Debt,
Mandatorily Convertible Securities, Trust Preferred Securities and Hybrid
Equity Securities outstanding as of the last day of the immediately
preceding fiscal quarter for which financial statements are available in an
amount not to exceed 15% of Total Capital as of such date and (y) any indebtedness
arising solely from the application of either Financial Interpretation Nos. 45
and 46 of Financial Accounting Standards Board or Issue No. 01-08 of the
Emerging Issues Task Force shall not constitute “Funded Debt”.


 


“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.


 


“GAAP”: 
generally accepted accounting principles in the United States as in
effect from time to time; provided that in the event that any “Accounting
Change” (as defined below) shall occur and such change results in a change in
the method of calculation of financial covenants, standards or terms in this
Agreement, then (i) the Borrower and the Administrative Agent agree to
enter into negotiations in order to amend such provisions of this Agreement so
as to reflect equitably such Accounting Changes with the desired result that
the criteria for evaluating the Borrower’s financial condition shall be the
same after such Accounting Changes as if such Accounting Changes had not been
made and (ii) until such time as such an amendment shall have been
executed and delivered by the Borrower, the Administrative Agent and the
Required Lenders, all financial covenants (including those contained in Section 7.1),
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred.  “Accounting Changes” refers to changes in
accounting principles required or permitted by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants or, if
applicable, the SEC.


 


6

















 


“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).


 


“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing Person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for
the purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount
of any Guarantee Obligation of any guaranteeing person shall be deemed to be
the lower of (a) an amount equal to the stated or determinable amount of
the primary obligation in respect of which such Guarantee Obligation is made
and (b) the maximum amount for which such guaranteeing person may be
liable pursuant to the terms of the instrument embodying such Guarantee
Obligation, unless such primary obligation and the maximum amount for which
such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.


 


“Hybrid
Equity Securities”:  any securities
issued by the Borrower, any Subsidiary or a financing vehicle of the Borrower
or any Subsidiary that (i) are classified as possessing a minimum of “intermediate
equity content” by S&P, Basket C equity credit by Moody’s and 50% equity
credit by Fitch at the time of issuance thereof and (ii) require no
repayments or prepayments and no mandatory redemptions or repurchases, in each
case, prior to the date that is 91 days after the later of (A) the
Revolving Termination Date and (B) the date on which the Revolving
Commitments are terminated, no Letter of Credit remains outstanding and no
Revolving Loan or other amount is owing to any Lender or the Administrative
Agent hereunder.


 


“Increased Revolving Commitment Activation Notice”:  a notice substantially in the form of Exhibit E-2.


 


“Increased Revolving Commitment Closing Date”:  any Business Day designated as such in an
Increased Revolving Commitment Activation Notice.


 


“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables or liabilities incurred in the
ordinary course of such Person’s business), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or 


 


7

















 


sale of such property), (e) all
Capital Lease Obligations of such Person, (f) all non-contingent
obligations of such Person in respect of acceptances, letters of credit, surety
bonds or similar arrangements, (g) the liquidation value of all
mandatorily redeemable preferred Capital Stock of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above, and (i) all
obligations of the kind referred to in clauses (a) through (h) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide
that such Person is not liable therefor. 
Notwithstanding the foregoing, any indebtedness arising solely
from the application of either Financial Interpretation Nos. 45 and 46 of
Financial Accounting Standards Board or Issue No. 01-08 of the Emerging
Issues Task Force shall not constitute “Indebtedness”.


 


“Indenture”:  the Indenture dated as of October 1,
1993 as amended from time to time, from the Borrower to U.S. Bank Trust
National Association (formerly, First Trust of New York, National Association),
as successor trustee to Morgan Guaranty Trust Company of New York.


 


“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.


 


“Insolvent”: 
pertaining to a condition of Insolvency.


 


“Interest Payment Date”:  (a) as to any ABR Loan, the last day of
each March, June, September and December to occur while such
Revolving Loan is outstanding and the Revolving Termination Date of such
Revolving Loan, (b) as to any Eurodollar Loan having an Interest Period of
three months or less, the last day of such Interest Period, (c) as to any
Eurodollar Loan having an Interest Period longer than three months, each day
that is three months, or a whole multiple thereof, after the first day of such
Interest Period and the last day of such Interest Period and (d) as to any
Revolving Loan, the date of any repayment or prepayment made in respect
thereof.


 


“Interest Period”:  as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, on the
date that is three Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:


 


(i)            if any Interest
Period would otherwise end on a day that is not a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless the result
of such extension would be to carry such Interest Period into another calendar
month in which event such Interest Period shall end on the immediately
preceding Business Day;


 


(ii)           the Borrower may
not select an Interest Period that would extend beyond the Revolving
Termination Date; and


 


8

















 


(iii)          any Interest Period
that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of a calendar month.


 


“Issuing Lender”:  each of JPMorgan Chase Bank, N.A. and
Barclays Bank PLC, or any affiliate of any of the foregoing, each in its
capacity as issuer of any Letter of Credit. 
Any other Lender selected by the Borrower to be an Issuing Lender shall
become an Issuing Lender with the consent of the Administrative Agent and such
Lender, in such capacity.


 


“L/C Commitment”:  $75,000,000.


 


“L/C Obligations”:  at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding Letters of
Credit and (b) the aggregate amount of drawings under Letters of Credit
that have not then been reimbursed pursuant to Section 3.5.


 


“L/C Participants”:  with respect to each Issuing Lender, the
collective reference to all the Lenders other than such Issuing Lender.


 


“Lenders”: 
as defined in the preamble hereto.


 


“Letters of Credit”:  letters of credit issued pursuant to Section 3.1
(and including in any case the Existing Letters of Credit).


 


“Lien”: 
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having substantially the
same economic effect as any of the foregoing).


 


“Loan Documents”:  this Agreement, the Notes and any amendment,
waiver, supplement or other modification to any of the foregoing.


 


“Mandatorily Convertible Securities”:  mandatorily convertible equity-linked
securities issued by the Borrower or any Subsidiary, so long as the terms of
such securities require no repayments or prepayments and no mandatory
redemptions or repurchases, in each case prior to the date that is 91 days
after the later of (A) the Revolving Termination Date and (B) the
date on which the Revolving Commitments are terminated, no Letter of Credit remains
outstanding and no Revolving Loan or other amount is owing to any Lender or the
Administrative Agent hereunder.


 


“Material Adverse Effect”:  any event, development or circumstance that
has had or could reasonably be expected to have a material adverse effect on (a) the
business, operations, property or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of any of this Agreement or any other Loan Document or the
rights and remedies of the Administrative Agent or the Lenders hereunder and
thereunder.


 


“Material Indebtedness”:  Indebtedness (other than the Revolving Loans
and Letters of Credit), or obligations in respect of one or more Swap
Agreements or Commodity Swap Agreements, of any one or more of the Borrower and
its Significant Subsidiaries in an aggregate principal amount exceeding
$50,000,000.  For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Significant Subsidiary in respect of any Swap Agreement or any
Commodity Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any 


 


9

















 


netting agreements) that the
Borrower or such Significant Subsidiary would be required to pay if such Swap
Agreement or Commodity Swap Agreement, as applicable, were terminated at such
time.


 


“Moody’s”: 
Moody’s Investors Service, Inc. and any successor thereto.


 


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


 


“New Lender”: 
as defined in Section 2.1(c).


 


“New Lender Supplement”:  as defined in Section 2.1(c).


 


“Non-Excluded Taxes”:  as defined in Section 2.13(a).


 


“Non-Extending Lender”:  as defined in Section 2.17(a).


 


“Non-Recourse Debt”: 
Indebtedness (a) which does not constitute Indebtedness or a
Guarantee Obligation of the Borrower or any Significant Subsidiary, (b) as
to which neither the Borrower nor any Significant Subsidiary is a lender, (c) in
respect of which default would not permit (whether upon notice, lapse of time
or both) any holder of any other Indebtedness of the Borrower or any
Significant Subsidiary to declare a default on such other Indebtedness or cause
the payment thereof to be accelerated or payable prior to its stated maturity,
and (d) as to which the lenders will not have any recourse to the stock or
assets of the Borrower or any Significant Subsidiary.


 


“Non-U.S. Lender”:  as defined in Section 2.13(d).


 


“Notes”: 
the collective reference to any promissory note evidencing Revolving
Loans.


 


“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Revolving Loans and
Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Revolving Loans and all other obligations and liabilities of the Borrower to
the Administrative Agent or to any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Agreement, any other
Loan Document, the Letters of Credit or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses
(including all fees, charges and disbursements of counsel to the Administrative
Agent or to any Lender that are required to be paid by the Borrower pursuant
hereto) or otherwise.


 


“Off-Balance Sheet Liability”:  of a Person, (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 of such Person which is not a Capital Lease Obligation
and (iii) all Synthetic Lease Obligations of such Person.  The amount of liability under a Sale and
Leaseback Transaction of any Person shall be the amount that would be shown as
a liability on a balance sheet of such Person prepared in accordance with GAAP
if such lease or agreement were accounted for as a Capital Lease Obligation.


 


“Other Taxes”:  any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the


 


10
















 


execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan
Document.


 


“Participant”:  as defined in Section 10.6(c).


 


“PBGC”: 
the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA (or any successor).


 


“Permitted Lien”:  (i) any Lien securing a tax, assessment
or other governmental charge or levy or the claim of a materialman, mechanic,
carrier, warehouseman or landlord for labor, materials, supplies or rentals
incurred in the ordinary course of business, but only if payment thereof shall
not at the time be required to be made in accordance with Section 6.3; (ii) any
Lien on the properties and assets of a Significant Subsidiary of the Borrower
securing an obligation owing to the Borrower or another Significant Subsidiary;
(iii) any Lien consisting of a deposit or pledge made in the ordinary
course of business in connection with, or to secure payment of, obligations
under workers’ compensation, unemployment insurance, social security or
retirement benefits or similar legislation; (iv) any Lien arising pursuant
to an order of attachment, distraint or similar legal process arising in
connection with legal proceedings, but only if no Event of Default exists in
respect of such order; (v) any Lien existing on (A) any property or
asset of any Person at the time such Person becomes a Subsidiary or (B) any
property or asset at the time such property or asset is acquired by the
Borrower or a Subsidiary, but only, in the case of either (A) or (B), if
and so long as (1) such Lien was not created in contemplation of such
Person becoming a Subsidiary or such property or asset being acquired, (2) such
Lien is and will remain confined to the property or asset subject to it at the
time such Person becomes a Subsidiary or such property or asset is acquired and
to improvements thereafter erected on or attached to such property or asset or
any property or asset acquired in substitution or replacement thereof, (3) such
Lien secures only the obligation secured thereby at the time such Person
becomes a Subsidiary or such property or asset is acquired and (4) the
obligation secured by such Lien is not in default; (vi) any Lien in
existence on the Closing Date to the extent set forth on Schedule 7.2, but
only, in the case of each such Lien, to the extent it secures an obligation
outstanding on the Closing Date to the extent set forth on such Schedule; (vii) any
Lien securing Purchase Money Indebtedness but only if, in the case of each such
Lien, (A) such Lien shall at all times be confined solely to the property
or asset the purchase price of which was financed through the incurrence of the
Purchase Money Indebtedness secured by such Lien and to improvements thereafter
erected on or attached to such property or asset or any property or asset
acquired in substitution or replacement thereof and (B) such Lien attached
to such property or asset within 90 days of the acquisition of such property or
asset; (viii) deposits made in the ordinary course of business to secure
the performance of bids, trade contracts (other than Indebtedness), operating
leases, surety and appeal bonds, performance bonds and other obligations of a
like nature incurred in the ordinary course of business; (ix) deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements; (x) easements, reservations, rights-of-way, restrictions,
survey exceptions and other similar encumbrances as to real property which
customarily exist on properties of corporations engaged in similar activities
and similarly situated and which do not materially interfere with the conduct
of the business of the Borrower or any Significant Subsidiary conducted at the
property subject thereto; (xi) leases and subleases of property owned or leased
by the Borrower or any Significant Subsidiary not interfering with the ordinary
conduct of the business of the Borrower and the Significant Subsidiaries; (xii)
Liens securing obligations, neither assumed by the Borrower or any Significant
Subsidiary nor on account of which the Borrower or any Significant Subsidiary
customarily pays interest, upon real estate or under which any Significant
Subsidiary has a right-of-way, easement, franchise or other servitude or of
which any Significant Subsidiary is the lessee of the whole thereof or any
interest therein for the purpose of locating transmission and distribution
lines and related support structures, pipe lines, substations, measuring
stations, tanks, pumping or delivery equipment or similar equipment; (xiii)
Liens arising by virtue of any statutory or common law provision relating to
banker’s liens, rights of setoff or similar rights as to deposit


 


11

















 


accounts or other funds
maintained with a depository institution; (xiv) any Lien constituting a
renewal, extension or replacement of a Lien constituting a Permitted Lien by
virtue of clause (v), (vi), (vii) or (xvii) of this definition, but only
if (A) at the time such Lien is granted and immediately after giving
effect thereto, no Default or Event of Default would exist, (B) such Lien
is limited to all or a part of the property or asset that was subject to the
Lien so renewed, extended or replaced and to improvements thereafter erected on
or attached to such property or asset or any property or asset acquired in
substitution or replacement thereof, (C) the principal amount of the
obligations secured by such Lien does not exceed the principal amount of the
obligations secured by the Lien so renewed, extended or replaced and (D) the
obligations secured by such Lien bear interest at a rate per annum not
exceeding the rate borne by the obligations secured by the Lien so renewed,
extended or replaced except for any increase that is commercially reasonable at
the time of such increase; (xv) Liens on any property of any Significant
Subsidiary securing Indebtedness of such Significant Subsidiary; (xvi) Liens
created and/or permitted under the Indenture,
as such Indenture exists on the date
hereof, without regard to any waiver, amendment, modification or restatement
thereof; (xvii) any Lien on any asset of any Person existing at the time such
Person is merged or consolidated with or into the Borrower or any Significant
Subsidiary and not created in contemplation thereof; and (xviii) Liens not
described in clauses (i) through (xvii), inclusive, securing Indebtedness
or other liabilities or obligations of the Borrower and/or its
Significant Subsidiaries in an aggregate principal amount outstanding not to
exceed 10% of the consolidated net worth of the Borrower and its
Subsidiaries at the time of such incurrence.


 


“Person”: 
an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.


 


“Plan”: 
at a particular time, any employee benefit plan that is covered by ERISA
and in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA
be deemed to be) an “employer” as defined in Section 3(5) of ERISA.


 


“Purchase Money Indebtedness”:  Indebtedness of the Borrower that is incurred
to finance part or all of (but not more than) the purchase price of a tangible
asset; provided that (i) neither the Borrower nor any Subsidiary
had at any time prior to such purchase any interest in such asset other than a
security interest or an interest as lessee under an operating lease and (ii) such
Indebtedness is incurred within 90 days after such purchase.


 


“Refinancing”:  as defined in Section 5.1(b).


 


“Register”: 
as defined in Section 10.6(b).


 


“Regulation U”:  Regulation U of the Board as in effect from
time to time.


 


“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn
under Letters of Credit.


 


“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.


 


“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived under PBGC Reg. § 4043.


 


12

















 


“Required Lenders”:  at any time, the holders of more than 50% of
the Total Revolving Commitments then in effect or, if the Revolving Commitments
have been terminated, the Total Revolving Extensions of Credit then
outstanding.


 


“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.


 


“Responsible Officer”:  the chief executive officer, president, chief
financial officer or treasurer of the Borrower.


 


“Revolving Commitment”:  as to any Lender, the obligation of such
Lender to make Revolving Loans and participate in Letters of Credit in an
aggregate principal and/or face amount not to exceed the amount set forth under
the heading “Revolving Commitment” opposite such Lender’s name on Schedule 1.1A
or in the Assignment and Assumption or New Lender Supplement pursuant to which
such Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.  The
original amount of the Total Revolving Commitments is $700,000,000.


 


“Revolving Commitment Period”:  as to any Lender, the period from and
including the Closing Date to the Revolving Termination Date applicable
thereto.


 


“Revolving Extensions of Credit”:  as to any Lender at any time, an amount equal
to the sum of (a) the aggregate principal amount of all Revolving Loans
held by such Lender then outstanding and (b) such Lender’s Revolving
Percentage of the L/C Obligations then outstanding.


 


“Revolving Loans”:  as defined in Section 2.1(a).


 


“Revolving Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Commitment then constitutes of the Total
Revolving Commitments or, at any time after the Revolving Commitments shall
have expired or terminated, the percentage which the aggregate principal amount
of such Lender’s Revolving Loans then outstanding constitutes of the aggregate
principal amount of the Revolving Loans then outstanding, provided,
that, in the event that the Revolving Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the
outstanding Revolving Extensions of Credit shall be held by the Lenders on a
comparable basis.


 


“Revolving Termination Date”:  December 14, 2011: provided that
with respect to Continuing Lenders only, the Revolving Termination Date may be
extended pursuant to Section 2.17.


 


“Sale and Leaseback Transaction”:  any arrangement, directly or indirectly, with
any Person whereby a seller or transferor shall sell or otherwise transfer any
real or personal property and concurrently therewith lease, or repurchase under
an extended purchase contract, conditional sales or other title retention
agreement, the same or substantially similar property.


 


“S&P”: 
Standard & Poor’s Ratings Services, a division of the McGraw
Hill Companies, Inc. or any successor thereto.


 


“SEC”: 
the Securities and Exchange Commission and any successor thereto.


 


13

















 


“Significant Subsidiary”:  (a) any current or subsequently acquired
Subsidiary the total assets of which equal or exceed 15% of the consolidated
total assets of the Borrower and its Subsidiaries and (b) any Designated
Significant Subsidiary.


 


“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.


 


“Solvent”: 
when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “liabilities
of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable
value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts
as such debts become absolute and matured, (c) such Person will not have,
as of such date, an unreasonably small amount of capital with which to conduct
its business, and (d) such Person will be able to pay its debts as they
mature.  For purposes of this definition,
(i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right
to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured or (y) right to an equitable remedy
for breach of performance if such breach gives rise to a right to payment,
whether or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or unsecured.


 


“Subsidiary”: 
as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having
such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which
is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.


 


“Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to, one or
more interest rates, currencies, equity or debt instruments or securities,
including indices relating thereto, or any similar transaction or any
combination of these transactions; provided that no phantom stock
or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Borrower
or any of its Subsidiaries shall be a “Swap Agreement”.


 


“Synthetic Lease Obligation”:  the monetary obligation of a Person under (i) a
so-called synthetic or off-balance sheet or tax retention lease or (ii) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as indebtedness of such
Person (without regard to accounting treatment).  The amount of Synthetic Lease Obligations of
any Person under any such lease or agreement shall be the amount which would be
shown as a liability on a balance sheet of such Person prepared in accordance
with GAAP if such lease or agreement were accounted for as a Capital Lease
Obligation.


 


“Syndication Agent”:  as defined in the preamble hereto.


 


“Total Capital”:  the sum of (A) stockholder’s equity,
which is the sum of common stock, premium on common stock, retained earnings
and preferred stock plus (B) Funded Debt plus (C) to
the 


 


14

















 


extent not included in
Funded Debt, Mandatorily Convertible Securities, Trust Preferred
Securities and Hybrid Equity Securities, in each case as determined with
respect to the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP; provided that there shall be excluded from the
calculation of “Total Capital” any non-cash effects (x) of the COLI
Litigation, including any non-cash effects resulting from any decisions in
respect thereof or any settlement thereof, (y) resulting from application
of Financial Accounting Standards Board Interpretation No. 48 — Accounting
for Uncertainty in Income Taxes and Interpretation of FASB Statement No. 109
and (z) resulting from application of Financial Accounting Standards Board
Statement No. 158: Employers’ Accounting for Defined Pension and Other
Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and
132(R).


 


“Total Revolving Commitments”:  at any time, the aggregate amount of the
Revolving Commitments then in effect.


 


“Total Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Revolving Extensions of Credit of the Lenders outstanding at such time.


 


“Transferee”: 
any Assignee or Participant.


 


“Trust Preferred Securities”: 
any preferred securities issued by a Trust Preferred Securities
Subsidiary, where such preferred securities have the following characteristics:


 


(i)            such
Trust Preferred Securities Subsidiary lends substantially all of the proceeds
from the issuance of such preferred securities to the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower in exchange for
subordinated debt issued by the Borrower or such wholly-owned direct or
indirect Subsidiary, respectively;


 


(ii)           such preferred
securities contain terms providing for the deferral of interest payments
corresponding to provisions providing for the deferral of interest payments on
the subordinated debt; and


 


(iii)          the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower (as the case may be)
makes periodic interest payments on the subordinated debt, which interest
payments are in turn used by the Trust Preferred Securities Subsidiary to make
corresponding payments to the holders of such preferred securities.


 


“Trust Preferred
Securities Subsidiary”:  any Delaware
business trust (or similar entity) (i) all of the common equity interest
of which is owned (either directly or indirectly through one or more Wholly
Owned Subsidiaries of the Borrower) at all times by the Borrower, (ii) that
has been formed for the purpose of issuing Trust Preferred Securities and (iii) substantially
all of the assets of which consist at all times solely of subordinated debt
issued by the Borrower or a wholly-owned direct or indirect Subsidiary of the
Borrower (as the case may be) and payments made from time to time on such
subordinated debt..


 


“Type”: 
as to any Revolving Loan, its nature as an ABR Loan or a Eurodollar
Loan.


 


“United States”:  the United States of America.


 


“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.


 


15

















 


1.2           Other Definitional Provisions.  (a) Unless otherwise specified therein,
all terms defined in this Agreement shall have the defined meanings when used
in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.


 


(b)  As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, (i) accounting terms relating to the Borrower not defined
in Section 1.1 and accounting terms partly defined in Section 1.1, to
the extent not defined, shall have the respective meanings given to them under
GAAP, (ii) the words “include”, “includes” and “including” shall be deemed
to be followed by the phrase “without limitation”, (iii) the word “incur”
shall be construed to mean incur, create, issue, assume, become liable in
respect of or suffer to exist (and the words “incurred” and “incurrence” shall
have correlative meanings), (iv) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, Capital Stock,
securities, revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise
specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time.


 


(c)  The words “hereof”, “herein” and “hereunder”
and words of similar import, when used in this Agreement, shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.


 


(d)  The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.


 


SECTION 2.   AMOUNT AND TERMS OF
REVOLVING COMMITMENTS


 


2.1           Revolving
Commitments.  (a) Subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans (“Revolving Loans”) to the Borrower from time to time
during the Revolving Commitment Period in an aggregate principal amount at any
one time outstanding which, when added to such Lender’s Revolving Percentage of
the L/C Obligations then outstanding, does not exceed the amount of such Lender’s
Revolving Commitment.  During the
Revolving Commitment Period the Borrower may use the Revolving Commitments by
borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing,
all in accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.6.


 


(b) 
At any time prior to the fourth anniversary of the Closing Date, the Borrower
and any one or more Lenders (including New Lenders) may agree that such Lender(s) shall
make, obtain or increase the amount of their Revolving Commitments by executing
and delivering to the Administrative Agent an Increased Revolving Commitment
Activation Notice specifying the amount of such increase and the applicable
Increased Revolving Commitment Closing Date (which may be no later than the
fourth anniversary of the Closing Date). 
Notwithstanding the foregoing, (i) the aggregate amount of
incremental Revolving Commitments obtained pursuant to this Section 2.1(b) shall
not exceed $100,000,000, (ii) incremental Revolving Commitments may not be
made, obtained or increased after the occurrence and during the continuation of
a Default or Event of Default, including after giving effect to the incremental
Revolving Commitments in question, (iii) the increase effected pursuant to
this paragraph shall be in a minimum amount of at least $25,000,000 and (iv) no
more than one Increased Revolving Commitment Closing Date may be selected by
the Borrower during the term of this Agreement. 
No Lender shall have 


 


16

















 


any obligation to
participate in any increase described in this paragraph unless it agrees to do
so in its sole discretion.


 


(c) 
Any additional bank, financial institution or other entity which, with the
consent of the Borrower and the Administrative Agent (which consent shall not
be unreasonably withheld), elects to become a “Lender” under this Agreement in
connection with an increase described in Section 2.1(b) shall execute
a New Lender Supplement (each, a “New Lender Supplement”), substantially
in the form of Exhibit E-1, whereupon such bank, financial institution or
other entity (a “New Lender”) shall become a Lender for all purposes and
to the same extent as if originally a party hereto and shall be bound by and
entitled to the benefits of this Agreement.


 


(d) 
On each Increased Revolving Commitment Closing Date on which there are
Revolving Loans outstanding, the New Lender(s) and/or Lender(s) that
have increased their Revolving Commitments shall make Revolving Loans, the
proceeds of which will be used to prepay the Revolving Loans of other Lenders,
so that, after giving effect thereto, the resulting Revolving Loans outstanding
are allocated among the Lenders in accordance with Section 2.11(a) based
on the respective Revolving Percentages of the Lenders after giving effect to
such Increased Revolving Commitment Closing Date.


 


(e)  The Borrower shall repay the outstanding
Revolving Loans of each Lender on the Revolving Termination Date applicable to
such Lender.


 


2.2           Procedure for Revolving Loan
Borrowing.   The Borrower may borrow
under the Revolving Commitments during the Revolving Commitment Period on any
Business Day, provided that the Borrower shall give the Administrative
Agent irrevocable notice (which notice must be received by the Administrative
Agent prior to 11:00 A.M., New York City time, (a) three Business
Days prior to the requested Borrowing Date, in the case of Eurodollar Loans
(or, with respect to any Eurodollar Loans to be made on the Closing Date, such
shorter time period as may be agreed by the Administrative Agent) or (b) on
the requested Borrowing Date, in the case of ABR Loans), specifying (i) the
amount and Type of Revolving Loans to be borrowed, (ii) the requested
Borrowing Date and (iii) in the case of Eurodollar Loans, the respective
lengths of the initial Interest Period therefor.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of ABR Loans,
$1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Commitments are less than $1,000,000, such lesser amount) and (y) in
the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in
excess thereof.  Upon receipt of any such
notice from the Borrower, the Administrative Agent shall promptly notify each
Lender thereof.  Each Lender will make
the amount of its pro  rata share of each borrowing available to
the Administrative Agent for the account of the Borrower at the Funding Office
prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of such office with the aggregate of the amounts made available to
the Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent.


 


2.3           Fees.  (a)  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee for the
period from and including the date hereof to the last day of the Revolving
Commitment Period applicable thereto, computed at the Applicable Margin on the
average daily amount of the Available Revolving Commitment of such Lender
during the period for which payment is made, payable quarterly in arrears on
each Fee Payment Date.


 


(b)  The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates as set forth in
any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.


 


17

















 


2.4           Termination or Reduction of
Revolving Commitments.  The Borrower
shall have the right, upon not less than three Business Days’ notice to the Administrative
Agent, to terminate the Revolving Commitments or, from time to time, to reduce
the amount of the Revolving Commitments; provided that no such
termination or reduction of Revolving Commitments shall be permitted if, after
giving effect thereto and to any prepayments of the Revolving Loans made on the
effective date thereof, the Total Revolving Extensions of Credit would exceed
the Total Revolving Commitments.  Any
such reduction shall be in an amount equal to $1,000,000, or a whole multiple
thereof, and shall reduce permanently the Revolving Commitments then in
effect.  Following an Extension Request
pursuant to Section 2.17, the Borrower may terminate the Revolving
Commitments of the Non-Extending Lenders; provided that the Borrower
shall prepay the Revolving Loans of such Non-Extending Lenders on the effective
date of such termination, together with accrued but unpaid interest and fees
thereon and all other amounts then payable hereunder to such Non-Extending
Lenders.


 


2.5           Optional Prepayments.  The Borrower may at any time and from time to
time prepay the Revolving Loans, in whole or in part, without premium or
penalty, upon irrevocable notice delivered to the Administrative Agent no later
than 11:00 A.M., New York City time, three Business Days prior thereto, in
the case of Eurodollar Loans, and no later than 11:00 A.M., New York City
time, on the prepayment date, in the case of ABR Loans, which notice shall
specify the date and amount of prepayment and whether the prepayment is of
Eurodollar Loans or ABR Loans; provided, that if a Eurodollar Loan is
prepaid on any day other than the last day of the Interest Period applicable
thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.14.  Upon receipt of any such notice the Administrative
Agent shall promptly notify each Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with accrued interest to such date on the amount
prepaid.  Partial prepayments of
Revolving Loans shall be in an aggregate principal amount of $1,000,000 or a
whole multiple thereof.


 


2.6           Conversion and Continuation
Options.  (a)   The Borrower may elect from time to time to
convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York
City time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 11:00 A.M., New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
ABR Loan may be converted into a Eurodollar Loan when any Event of Default has
occurred and is continuing and the Administrative Agent or the Required Lenders
have determined in its or their sole discretion not to permit such
conversions.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each Lender thereof.


 


(b)  Any Eurodollar Loan may be continued as
such upon the expiration of the then current Interest Period with respect
thereto by the Borrower giving irrevocable notice to the Administrative Agent,
in accordance with the applicable provisions of the term “Interest Period” set
forth in Section 1.1, of the length of the next Interest Period to be
applicable to such Revolving Loans, provided that no Eurodollar Loan may
be continued as such when any Event of Default has occurred and is continuing
and the Administrative Agent has or the Required Lenders have determined in its
or their sole discretion not to permit such continuations, and provided,
further, that if the Borrower shall fail to give any required notice as
described above in this paragraph or if such continuation is not permitted
pursuant to the preceding proviso such Revolving Loans shall be automatically
converted to ABR Loans on the last day of such then expiring Interest
Period.  Upon receipt of any such notice
the Administrative Agent shall promptly notify each Lender thereof.


 


18

















 


2.7           Limitations on Eurodollar Tranches.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be
made pursuant to such elections so that, (a) after giving effect thereto,
the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of
$1,000,000 in excess thereof and (b) no more than ten Eurodollar Tranches
shall be outstanding at any one time.


 


2.8           Interest Rates and Payment Dates.  (a)  
Each Eurodollar Loan shall bear interest for each day during each
Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin.


 


(b)  Each ABR Loan shall bear interest at a
rate per annum equal to the ABR plus the Applicable Margin.


 


(c)  (i) If all or a portion of the
principal amount of any Revolving Loan or Reimbursement Obligation shall not be
paid when due (whether at the stated maturity, by acceleration or otherwise),
all outstanding Revolving Loans and Reimbursement Obligations (whether or not
overdue) shall bear interest at a rate per annum equal to (x) in the case
of the Revolving Loans, the rate that would otherwise be applicable thereto
pursuant to the foregoing provisions of this Section plus 2% or (y) in
the case of Reimbursement Obligations, the rate applicable to ABR Loans plus
2%, and (ii) if all or a portion of any interest payable on any Revolving
Loan or Reimbursement Obligation or any commitment fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to ABR Loans plus 2%, in
each case, with respect to clauses (i) and (ii) above, from the date
of such non-payment until such amount is paid in full (as well after as before
judgment).


 


(d)  Interest shall be payable in arrears on
each Interest Payment Date, provided that interest accruing pursuant to
paragraph (c) of this Section shall be payable from time to time on
demand.


 


2.9           Computation of Interest and Fees.  (a)  
Interest and fees payable pursuant hereto shall be calculated on the
basis of a 360-day year for the actual days elapsed, except that, with respect
to ABR Loans the rate of interest on which is calculated on the basis of the
Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of each determination of a
Eurodollar Rate.  Any change in the
interest rate on a Revolving Loan resulting from a change in the ABR or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the
amount of each such change in interest rate.


 


(b)  Each determination of an interest rate by
the Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 2.8(a).


 


2.10         Inability to Determine Interest Rate.  If prior to the first day of any Interest
Period, the Administrative Agent shall give telecopy or telephonic notice thereof
to the Borrower and the Lenders that:


 


19

















 


(a)  the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or


 


(b)  the Administrative Agent shall have received notice from the
Required Lenders that the Eurodollar Rate determined or to be determined for
such Interest Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or maintaining
their affected Revolving Loans during such Interest Period,


 


then (x) any Eurodollar Loans requested to be made on the first
day of such Interest Period shall be made as ABR Loans, (y) any Revolving
Loans that were to have been converted on the first day of such Interest Period
to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Eurodollar Loans shall be converted, on the last day of the
then-current Interest Period, to ABR Loans. 
Until such notice has been withdrawn by the Administrative Agent, no
further Eurodollar Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Revolving Loans to Eurodollar Loans.


 


2.11         Pro Rata Treatment and Payments.  (a)  
Except as otherwise expressly provided herein, each borrowing by the
Borrower from the Lenders hereunder, each payment by the Borrower on account of
any commitment fee and any reduction of the Revolving Commitments of the
Lenders shall be made pro  rata according to the respective
Revolving Percentages of the Lenders.


 


(b)  Except as otherwise expressly provided
herein, each payment (including each prepayment) by the Borrower on account of
principal of and interest on the Revolving Loans shall be made pro  rata
according to the respective outstanding principal amounts of the Revolving
Loans then held by the Lenders.


 


(c)  All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made without setoff or counterclaim and shall be made
prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in
Dollars and in immediately available funds. 
The Administrative Agent shall distribute such payments to the Lenders
promptly upon receipt in like funds as received.  If any payment hereunder (other than payments
on the Eurodollar Loans) becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day.  If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business
Day.  In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.


 


(d)  Unless the Administrative Agent shall have
been notified in writing by any Lender prior to a borrowing that such Lender
will not make the amount that would constitute its share of such borrowing
available to the Administrative Agent, the Administrative Agent may assume that
such Lender is making such amount available to the Administrative Agent, and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower a corresponding amount. 
If such amount is not made available to the Administrative Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon, at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes
such amount immediately available to the Administrative Agent.  A


 


20
















 


certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the
absence of manifest error.  If such
Lender’s share of such borrowing is not made available to the Administrative
Agent by such Lender within three Business Days after such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount with
interest thereon at the rate per annum applicable to ABR Loans, on demand, from
the Borrower.  Nothing herein shall
be deemed to limit the rights of the Borrower against such Lender.


 


(e)  Unless the Administrative Agent shall have
been notified in writing by the Borrower prior to the date of any payment due
to be made by the Borrower hereunder that the Borrower will not make such
payment to the Administrative Agent, the Administrative Agent may assume that
the Borrower is making such payment, and the Administrative Agent may, but
shall not be required to, in reliance upon such assumption, make available to
the Lenders their respective shares of a corresponding amount.  If such payment is not made to the
Administrative Agent by the Borrower within three Business Days after such due
date, the Administrative Agent shall be entitled to recover, on demand, from
each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum
equal to the daily average Federal Funds Effective Rate.  Nothing herein shall be deemed to limit the
rights of the Administrative Agent or any Lender against the Borrower.


 


2.12         Requirements of Law.  (a)   If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:


 


(i) 
shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by
it, or change the basis of taxation of payments to such Lender in respect
thereof (except, in each case, for Non-Excluded Taxes covered by Section 2.13
and changes in the rate of tax on the overall net income of such Lender);


 


(ii) 
shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or
other liabilities in or for the account of, advances, loans or other extensions
of credit by, or any other acquisition of funds by, any office of such Lender
that is not otherwise included in the determination of the Eurodollar Rate; or


 


(iii)    shall impose on such Lender any other
condition;


 


and the result of any of the foregoing is to increase the cost to such
Lender, by an amount that such Lender deems to be material, of making,
converting into, continuing or maintaining Eurodollar Loans or issuing or
participating in Letters of Credit, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall pay
such Lender, reasonably promptly after its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable.  If any Lender becomes entitled
to claim any additional amounts pursuant to this paragraph, it shall promptly
notify the Borrower (with a copy to the Administrative Agent) of the event by
reason of which it has become so entitled, setting forth in reasonable detail
the calculations upon which such Lender determined such amounts.


 


(b)  If any Lender shall have determined that
the adoption of or any change in any Requirement of Law regarding capital
adequacy or in the interpretation or application thereof or compliance by such
Lender or any corporation controlling such Lender with any request or directive


 


21

















 


regarding capital adequacy (whether or not having the force of law)
from any Governmental Authority made subsequent to the date hereof shall have
the effect of reducing the rate of return on such Lender’s or such corporation’s
capital as a consequence of its obligations hereunder or under or in respect of
any Letter of Credit to a level below that which such Lender or such corporation
could have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent) of a written request therefor setting forth in
reasonable detail the calculations upon which such Lender determined such
amounts, the Borrower shall pay to such Lender reasonably promptly after such
submission such additional amount or amounts as will compensate such Lender or
such corporation for such reduction.


 


(c)  A certificate as to any additional amounts
payable pursuant to this Section submitted by any Lender to the Borrower
(with a copy to the Administrative Agent) shall be conclusive in the absence of
manifest error.  Notwithstanding anything
to the contrary in this Section, the Borrower shall not be required to
compensate a Lender pursuant to this Section for any amounts incurred more
than six months prior to the date that such Lender notifies the Borrower of
such Lender’s intention to claim compensation therefor; provided that,
if within such six-month period circumstances occur that give rise to such
claim having a retroactive effect, then such six-month period shall be extended
to include the period of such retroactive effect.  The obligations of the Borrower pursuant to
this Section shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.


 


2.13         Taxes.  (a) All
payments made by the Borrower under this Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding net income taxes
and franchise taxes (imposed in lieu of net income taxes) imposed on the
Administrative Agent or any Lender as a result of a present or former
connection between the Administrative Agent or such Lender and the jurisdiction
of the Governmental Authority imposing such tax or any political subdivision or
taxing authority thereof or therein (other than any such connection arising
solely from the Administrative Agent or such Lender having executed, delivered
or performed its obligations or received a payment under, or enforced, this
Agreement or any other Loan Document). 
If any such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes are
required to be withheld from any amounts payable to the Administrative Agent or
any Lender hereunder, the amounts so payable to the Administrative Agent or
such Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes
and Other Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement, provided, however,
that the Borrower shall not be required to increase any such amounts payable to
any Lender with respect to any Non-Excluded Taxes (i) that are
attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time such Lender becomes a party to this Agreement, except to the extent
that such Lender’s assignor (if any) was entitled, at the time of assignment,
to receive such additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this paragraph, so long as such additional
amounts payable by the Borrower are not increased thereby.


 


(b)  In addition, the Borrower shall pay any
Other Taxes to the relevant Governmental Authority in accordance with
applicable law.


 


22

















 


(c)  Whenever any Non-Excluded Taxes or Other
Taxes are payable by the Borrower, as promptly as possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of the relevant Lender, as the case may be, a certified copy of an
original official receipt received by the Borrower showing payment thereof or
such other evidence of payment as is reasonably satisfactory to the
Administrative Agent.  If the Borrower
fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate
taxing authority or fails to remit to the Administrative Agent the required
receipts or other documentary evidence, the Borrower shall indemnify the
Administrative Agent and the Lenders for any incremental Non-Excluded Taxes,
interest or penalties that may become payable by the Administrative Agent or
any Lender as a result of any such failure.


 


(d)  
Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the
Administrative Agent (or, in the case of a Participant, to the Lender from
which the related participation shall have been purchased) two copies of either
U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in the
case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax
under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement substantially in the form of Exhibit C
and a Form W-8BEN, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by the Borrower under this Agreement and the other Loan Documents.  Such forms shall be delivered by each
Non-U.S. Lender on or before the date it becomes a party to this Agreement (or,
in the case of any Participant, on or before the date such Participant
purchases the related participation).  In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender.  Each Non-U.S. Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a
position to provide any previously delivered certificate to the Borrower (or
any other form of certification adopted by the U.S. taxing authorities for such
purpose).  Notwithstanding any other
provision of this paragraph, a Non-U.S. Lender shall not be required to deliver
any form pursuant to this paragraph that such Non-U.S. Lender is not legally
able to deliver.


 


(e)  A Lender that is entitled to an exemption
from or reduction of non-U.S. withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.


 


(f)  If the
Administrative Agent or any Lender determines, in its sole discretion, that it
has received a refund of any Non-Excluded Taxes or Other Taxes as to which it
has been indemnified by the Borrower or with respect to which the Borrower has
paid additional amounts pursuant to this Section 2.13, it shall pay over
such refund to the Borrower (but only to the extent of indemnity payments made,
or additional amounts paid, by the Borrower under this Section 2.13 with
respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund),
net of all associated out-of-pocket expenses of the Administrative Agent or
such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the
Borrower, upon the request of the Administrative Agent or such Lender, shall
repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the


 


23

















 


Administrative Agent or any Lender to make
available its tax returns (or any other information relating to its taxes which
it deems confidential) to the Borrower or any other Person.


 


(g)  The agreements in this Section shall
survive the termination of this Agreement and the payment of the Revolving
Loans and all other amounts payable hereunder.


 


2.14         Indemnity.  The Borrower
agrees to indemnify each Lender for, and to hold each Lender harmless from, any
loss or expense that such Lender may sustain or incur as a consequence of (a) default
by the Borrower in making a borrowing of, conversion into or continuation of
Eurodollar Loans after the Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (b) default by the
Borrower in making any prepayment of or conversion from Eurodollar Loans after
the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day that is not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Revolving Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of
interest (as reasonably determined by such Lender) that would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.


 


2.15         Change of Lending Office. 
Each Lender agrees that, upon the occurrence of any event giving rise to
the operation of Section 2.12 or 2.13(a) with respect to such Lender,
it will use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Revolving Loans
affected by such event with the object of avoiding the consequences of such
event; provided, that such designation is made on terms that, in the
sole judgment of such Lender, cause such Lender and its lending office(s) to
suffer no economic, legal or regulatory disadvantage, and provided, further,
that nothing in this Section shall affect or postpone any of the
obligations of the Borrower or the rights of any Lender pursuant to Section 2.12
or 2.13(a).


 


2.16         Replacement of Lenders.  The Borrower
shall be permitted to replace any Lender that (a) requests reimbursement
for amounts owing pursuant to Section 2.12 or 2.13(a), (b) defaults in
its obligation to make Revolving Loans hereunder or (c) is a Non-Extending
Lender, with a replacement financial institution or other entity; provided
that (i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) in the case of clause (a) above, prior to any such
replacement, such Lender shall have taken no action under Section 2.15 so
as to eliminate the continued need for payment of amounts owing pursuant to Section 2.12
or 2.13(a), (iv) the replacement financial institution shall purchase, at
par, all Revolving Loans and other amounts owing to such replaced Lender on or
prior to the date of replacement, (v) the Borrower shall be liable to such
replaced Lender under Section 2.14 if any Eurodollar Loan owing to such
replaced Lender shall be purchased other than on the last day of the Interest
Period relating thereto, (vi) the replacement financial institution, if
not already a Lender, shall be reasonably satisfactory to the Administrative
Agent, (vii) the replaced Lender shall be obligated to make such
replacement in accordance with the provisions of Section 10.6 (provided
that the Borrower shall be obligated to pay the registration and processing fee
referred to therein), (viii) until such time as such replacement shall be
consummated, the Borrower shall pay all additional amounts (if any) required


 


24

















 


pursuant to Section 2.12
or 2.13(a), as the case may be, and (ix) any such replacement shall not be
deemed to be a waiver of any rights that the Borrower, the Administrative Agent
or any other Lender shall have against the replaced Lender.


 


2.17         Extension of Revolving Termination Date.  (a) The
Borrower may, by written notice to the Administrative Agent in the form of Exhibit F-1
(an “Extension Request”)
given no earlier than the first anniversary of the Closing Date but no later
than 60 days prior to the then applicable Revolving Termination Date, request
that the then applicable Revolving Termination Date be extended to the date
that is one calendar year after the then applicable Revolving Termination
Date.  Such extension shall be effective
with respect to each Lender that, by a written notice in the form of Exhibit F-2
(a “Continuation Notice”)
to the Administrative Agent given no later than 30 days after the applicable
Extension Request is given by the Borrower (or such later date as the Borrower
shall specify in such Extension Request) (the “Extension Request Response
Date”), consents, in its sole discretion, to such extension (each Lender
giving a Continuation Notice being referred to herein as a “Continuing Lender” and each Lender
other than a Continuing Lender being referred to herein as a “Non-Extending Lender”), provided that (i) such extension shall be
effective only if the aggregate Revolving Commitments of the Continuing Lenders
constitute at least a majority of the Total Revolving Commitments on the date
of the Extension Request, (ii) any Lender that fails to submit a
Continuation Notice on or before the applicable Extension Request Response Date
shall be deemed not to have consented to such extension and shall constitute a
Non-Extending Lender and (iii) the Borrower may give only two Extension
Requests during the term of this Agreement. 
No Lender shall have any obligation to consent to any extension of the
Revolving Termination Date.  The
Administrative Agent shall notify each Lender of the receipt of an Extension
Request promptly after receipt thereof. 
The Administrative Agent shall notify the Borrower and the Lenders no
later than five days after the applicable Extension Request Response Date
whether the Administrative Agent has received Continuation Notices from Lenders
holding Revolving Commitments aggregating at least a majority of the Total
Revolving Commitments on the date of the applicable Extension Request.


 


(b) The
Revolving Commitment of each Non-Extending Lender shall terminate at the close
of business on the Revolving Termination Date in effect prior to the delivery
of such Extension Request without giving any effect to such proposed
extension.  In accordance with Section 2.1(e),
on such Revolving Termination Date, the Borrower shall pay to the
Administrative Agent, for the account of each Non-Extending Lender, an amount
equal to such Non-Extending Lender’s Revolving Loans, together with accrued but
unpaid interest and fees thereon and all other amounts then payable hereunder
to such Non-Extending Lender.  If,
however, on or before the date which is 10 days prior to the Revolving
Termination Date in effect prior to the delivery of an Extension Request
pursuant to this Section 2.17, the Borrower obtains a replacement Lender
pursuant to Section 2.16 for any such Non-Extending Lender and such
replacement Lender agrees to the extension of the Revolving Termination Date
pursuant to this Section 2.17, then such replacement Lender shall for all
purposes of this Section 2.17 and this Agreement be deemed to be a
Continuing Lender, and the Revolving Loans of such Lender shall not be due and
payable pursuant to this Section 2.17(b).


 


SECTION 3.   LETTERS OF CREDIT


 


3.1           L/C Commitment.  (a) Subject
to the terms and conditions hereof, each Issuing Lender, in reliance on the
agreements of the other Lenders set forth in Section 3.4(a), agrees to
issue Letters of Credit for the account of the Borrower on any Business Day
during the Revolving Commitment Period in such form as may be approved from
time to time by such Issuing Lender; provided that no Issuing Lender
shall issue any Letter of Credit if, (i) after giving effect to such
issuance, (A) the L/C Obligations would exceed the L/C Commitment or (B) the
aggregate amount of the Available Revolving Commitments would be less than zero
or (ii) such Issuing Lender shall have received written notice from


 


25

















 


the Administrative
Agent or the Borrower, at least one Business Day prior to the requested date of
issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Section 5.2 shall not have been
satisfied.  On the Closing Date, each
Existing Letter of Credit shall be deemed to be a Letter of Credit issued
hereunder for the account of the Borrower. 
Each Letter of Credit shall (i) be denominated in Dollars and (ii) expire
no later than the earlier of (x) the first anniversary of its date of
issuance and (y) the date that is five Business Days prior to the
Revolving Termination Date (as it may be extended), provided that any
Letter of Credit with a one-year term may provide for the renewal thereof for
additional one-year periods (which shall in no event extend beyond the date
referred to in clause (y) above).


 


(b)  No Issuing Lender shall at any time be
obligated to issue any Letter of Credit if such issuance would conflict with,
or cause such Issuing Lender or any L/C Participant to exceed any limits
imposed by, any applicable Requirement of Law.


 


3.2           Procedure for Issuance of Letter of Credit. 
The Borrower may from time to time request that an Issuing Lender issue
a Letter of Credit by delivering to such Issuing Lender at its address set
forth in its Issuing Lender Agreement an Application therefor, completed to the
satisfaction of such Issuing Lender, and such other certificates, documents and
other papers and information as such Issuing Lender may request.  Upon receipt of any Application, such Issuing
Lender will process such Application and the certificates, documents and other
papers and information delivered to it in connection therewith in accordance
with its customary procedures and shall promptly issue the Letter of Credit
requested thereby (but in no event shall an Issuing Lender be required to issue
any Letter of Credit earlier than three Business Days after its receipt of the
Application therefor and all such other certificates, documents and other
papers and information relating thereto) by issuing the original of such Letter
of Credit to the beneficiary thereof or as otherwise may be agreed to by such Issuing
Lender and the Borrower.  Such Issuing
Lender shall furnish a copy of such Letter of Credit to the Borrower promptly
following the issuance thereof.  The
applicable Issuing Lender shall promptly furnish to the Administrative Agent,
which shall in turn promptly furnish to the Lenders, notice of the issuance of
each Letter of Credit (including the amount thereof).


 


3.3           Fees and Other Charges.  (a) The
Borrower will pay a fee on all outstanding Letters of Credit at a per annum
rate equal to the Applicable Margin then in effect with respect to Eurodollar
Loans, shared ratably among the Lenders and payable quarterly in arrears on
each Fee Payment Date after the issuance date. 
In addition, the Borrower shall pay to the applicable Issuing Lender for
its own account a fronting fee for each Letter of Credit requested by the
Borrower in such amount and at such times as may be set forth in a separate
letter agreement between the Borrower and such Issuing Lender (each, an “Issuing
Lender Agreement”), which shall contain such Issuing Lender’s address for
notices..


 


(b)   In
addition to the foregoing fees, the Borrower shall pay or reimburse each
Issuing Lender for such normal and customary costs and expenses as are incurred
or charged by such Issuing Lender in issuing, negotiating, effecting payment
under, amending or otherwise administering any Letter of Credit.


 


3.4           L/C Participations.  (a) 
Each Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce such Issuing Lender to issue Letters of Credit,
each L/C Participant irrevocably agrees to accept and purchase and hereby
accepts and purchases from such Issuing Lender, on the terms and conditions set
forth below, for such L/C Participant’s own account and risk an undivided
interest equal to such L/C Participant’s Revolving Percentage in such Issuing
Lender’s obligations and rights under and in respect of each Letter of Credit
and the amount of each draft paid by such Issuing Lender thereunder.  Each L/C Participant agrees with each Issuing
Lender that, if a draft is


 


26

















 


paid under any
Letter of Credit for which such Issuing Lender is not reimbursed in full by the
Borrower in accordance with the terms of this Agreement, such L/C Participant
shall pay to such Issuing Lender upon demand at such Issuing Lender’s address
for notices specified herein an amount equal to such L/C Participant’s
Revolving Percentage of the amount of such draft, or any part thereof, that is
not so reimbursed.  Each L/C Participant’s
obligation to pay such amount shall be absolute and unconditional and shall not
be affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such L/C Participant may have against
such Issuing Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of a Default or an Event of
Default or the failure to satisfy any of the other conditions specified in Section 5,
(iii) any adverse change in the condition (financial or otherwise) of the
Borrower, (iv) any breach of this Agreement or any other Loan Document by
the Borrower or any other L/C Participant or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing


 


(b)  If any amount required to be paid by any
L/C Participant to an Issuing Lender pursuant to Section 3.4(a) in
respect of any unreimbursed portion of any payment made by such Issuing Lender
under any Letter of Credit is paid to such Issuing Lender within three Business
Days after the date such payment is due, such L/C Participant shall pay to such
Issuing Lender on demand an amount equal to the product of (i) such
amount, times (ii) the daily average Federal Funds Effective Rate during
the period from and including the date such payment is required to the date on
which such payment is immediately available to such Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360. 
If any such amount required to be paid by any L/C Participant pursuant
to Section 3.4(a) is not made available to an Issuing Lender by such
L/C Participant within three Business Days after the date such payment is due,
such Issuing Lender shall be entitled to recover from such L/C Participant, on
demand, such amount with interest thereon calculated from such due date at the
rate per annum applicable to ABR Loans. 
A certificate of an Issuing Lender submitted to any L/C Participant with
respect to any amounts owing under this Section shall be conclusive in the
absence of manifest error.


 


(c)  Whenever, at any time after an Issuing
Lender has made payment under any Letter of Credit and has received from any
L/C Participant its pro  rata share of such payment in accordance
with Section 3.4(a), such Issuing Lender receives any payment related to
such Letter of Credit (whether directly from the Borrower or otherwise,
including proceeds of collateral applied thereto by such Issuing Lender), or
any payment of interest on account thereof, such Issuing Lender will distribute
to such L/C Participant its pro  rata share thereof; provided,
however, that in the event that any such payment received by an Issuing
Lender shall be required to be returned by such Issuing Lender, such L/C
Participant shall return to such Issuing Lender the portion thereof previously
distributed by such Issuing Lender to it.


 


3.5           Reimbursement Obligation of the Borrower. 
If any draft is paid under any Letter of Credit, the Borrower shall
reimburse the applicable Issuing Lender for the amount of (a) the draft so
paid and (b) any taxes, fees, charges or other costs or expenses incurred
by such Issuing Lender in connection with such payment, not later than 12:00
Noon, New York City time, on (i) the Business Day that the Borrower
receives notice of such draft, if such notice is received on such day prior to
10:00 A.M., New York City time, or (ii) if clause (i) above does
not apply, the Business Day immediately following the day that the Borrower
receives such notice.  Each such payment
shall be made to the applicable Issuing Lender at its address set forth in its
Issuing Lender Agreement in Dollars and in immediately available funds.  Interest shall be payable on any such amounts
from the date on which the relevant draft is paid until payment in full at the
rate set forth in (x) until the Business Day next succeeding the date of
the relevant notice, Section 2.8(b) and (y) thereafter, Section 2.8(c).


 


3.6           Obligations Absolute.  The Borrower’s
obligations under this Section 3 shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff,


 


27

















 


counterclaim or
defense to payment that the Borrower may have or have had against any Issuing
Lender, any beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees with each Issuing
Lender that, absent gross negligence or willful misconduct of such Issuing
Lender, such Issuing Lender shall not be responsible for, and the Borrower’s
Reimbursement Obligations under Section 3.5 shall not be affected by,
among other things, the validity or genuineness of documents or of any
endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  No Issuing Lender shall be liable for any
error, omission, interruption or delay in transmission, dispatch or delivery of
any message or advice, however transmitted, in connection with any Letter of
Credit, except for errors or omissions resulting from the gross negligence or
willful misconduct of such Issuing Lender. 
The Borrower agrees that any action taken or omitted by an Issuing
Lender under or in connection with any Letter of Credit or the related drafts
or documents, if done in the absence of gross negligence or willful misconduct,
shall be binding on the Borrower and shall not result in any liability of such
Issuing Lender to the Borrower; provided that the Borrower shall not be
precluded from asserting any claim for direct (but not consequential) damages
suffered by the Borrower to the extent caused by (i) the gross negligence
or willful misconduct of such Issuing Lender in determining whether a request
presented under any Letter of Credit issued by it complied with the terms of
such Letter of Credit or (ii) such Issuing Lender’s willful failure or
gross negligence in failing to pay under any Letter of Credit issued by it
after the presentation to it of a request strictly complying with the terms and
conditions of such Letter of Credit.


 


3.7           Letter of Credit Payments. 
If any draft shall be presented for payment under any Letter of Credit,
the applicable Issuing Lender shall promptly notify the Borrower of the date
and amount thereof.  The responsibility
of the applicable Issuing Lender to the Borrower in connection with any draft
presented for payment under any Letter of Credit shall, in addition to any
payment obligation expressly provided for in such Letter of Credit, be limited
to determining that the documents (including each draft) delivered under such
Letter of Credit in connection with such presentment are substantially in
conformity with such Letter of Credit.


 


3.8           Applications.  To the extent
that any provision of any Application related to any Letter of Credit is
inconsistent with the provisions of this Section 3, the provisions of this
Section 3 shall apply.


 


SECTION 4.   REPRESENTATIONS AND
WARRANTIES


 


To induce the Administrative
Agent and the Lenders to enter into this Agreement and to make the Revolving
Loans and issue or participate in the Letters of Credit, the Borrower hereby
represents and warrants to the Administrative Agent and each Lender that:


 


4.1           Financial Condition.  The audited
consolidated balance sheet of the Borrower as at December 31, 2005, and
the related consolidated statements of income and cash flows for the fiscal
year then ended, reported on by and accompanied by an unqualified report from
Deloitte & Touche LLP, present fairly the consolidated financial
condition of the Borrower as of such date, and the consolidated results of its
operations and its consolidated cash flows for the fiscal year then ended.  The unaudited consolidated balance sheet of
the Borrower as at September 30, 2006, and the related unaudited consolidated
statements of income and cash flows for the nine-month period ended on such
date, present fairly the consolidated financial condition of the Borrower as of
such date, and the consolidated results of its operations and its consolidated
cash flows for the nine-month period then ended (subject to normal year-end
adjustments).  All such financial
statements, including the related schedules and notes thereto, have been
prepared in accordance with GAAP applied consistently throughout the periods
involved


 


28

















 


(except as
approved by the aforementioned firm of accountants and disclosed therein).  Except as set forth on Schedule 4.1, as of
the Closing Date, neither the Borrower nor any Significant Subsidiary has any
material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term commitments,
including any interest rate or foreign currency swap or exchange transaction or
other obligation in respect of derivatives, that are not reflected in the most
recent financial statements referred to in this paragraph.


 


4.2           No Change.  Except as set forth on Schedule 4.2, since December 31,
2005, there has been no development or event that has had or could reasonably
be expected to have a Material Adverse Effect.


 


4.3           Existence; Compliance with Law. 
The Borrower and each Significant Subsidiary (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own
and operate its material properties, to lease the material properties it
operates as lessee and to conduct the business in which it is currently
engaged, (c) is duly qualified as a foreign corporation or other
organization and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification, except to the extent that the failure to be so qualified
or in good standing could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect and (d) is in compliance with all Requirements
of Law except to the extent that the failure to comply therewith could not, in
the aggregate, reasonably be expected to have a Material Adverse Effect.


 


4.4           Power; Authorization; Enforceable Obligations. 
The Borrower has the corporate power and authority to make, deliver and
perform the Loan Documents to which it is a party and to obtain extensions of
credit hereunder.  The Borrower has taken
all necessary organizational action to authorize the execution, delivery and
performance of the Loan Documents to which it is a party and to authorize the
extensions of credit on the terms and conditions of this Agreement.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with (a) any extension of credit
hereunder when made (except for consents, authorizations, filings, notices or
other acts required with respect to such extension of credit that have been
obtained or made and are in full force and effect at the time of such extension
of credit) or (b) the execution, delivery, performance, validity or enforceability
of this Agreement or any of the Loan Documents. 
Each Loan Document has been duly executed and delivered on behalf of the
Borrower.  This Agreement constitutes,
and each other Loan Document upon execution will constitute, a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).


 


4.5           No Legal Bar.  The
execution, delivery and performance of this Agreement and the other Loan
Documents, the issuance of Letters of Credit, the borrowings hereunder and the
use of the proceeds thereof will not (a) violate any (i) Requirement
of Law or (ii) Contractual Obligation of the Borrower or any Significant
Subsidiary (except in the case of this clause (a) to the extent any such
violations could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect) and (b) result in, or require, the creation or
imposition of any Lien on any of their respective properties or revenues
pursuant to any Requirement of Law or any such Contractual Obligation.


 


4.6           Litigation.  Except as set
forth on Schedule 4.6, no litigation, investigation or proceeding of or before
any arbitrator or Governmental Authority is pending or, to the knowledge of the
Borrower, threatened by or against the Borrower or any Significant Subsidiary
or against any of their respective properties or revenues (a) with respect
to any of the Loan Documents or any of the transactions


 


29

















 


contemplated
hereby or thereby, or (b) that could reasonably be expected to have a
Material Adverse Effect.


 


4.7           Ownership of Property; Liens. 
Except (i) for assets disposed of in the ordinary course of
business since September 30, 2006 and (ii) as set forth on
Schedule 4.7, on the Closing Date the Borrower and its Significant
Subsidiaries have good title, free of all Liens other than Permitted Liens, to
all of the material assets reflected in the Borrower’s consolidated balance
sheet as of September 30, 2006 as owned by the Borrower and/or its
Significant Subsidiaries.


 


4.8           Taxes.  Each of the
Borrower and each Significant Subsidiary has filed or caused to be filed all
Federal, state and other material tax returns that are required to be filed and
has paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its property and all other taxes, fees or
other charges imposed on it or any of its property by any Governmental
Authority (other than (i) those that are not in the aggregate material and
(ii) any taxes, fees or other charges the amount or validity of which are
currently being contested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been provided on the
books of the Borrower or such Significant Subsidiary).


 


4.9           Federal Regulations.  No part of
the proceeds of any Revolving Loans, and no other extensions of credit
hereunder, will be used (a) for “buying” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under Regulation U
as now and from time to time hereafter in effect for any purpose that violates
the provisions of the Regulations of the Board or (b) for any purpose that
violates the provisions of the Regulations of the Board.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred
to in Regulation U.


 


4.10         ERISA.  Except as
could not reasonably be expected to have a Material Adverse Effect, (a) neither
a Reportable Event nor an “accumulated funding deficiency” (within the meaning
of Section 412 of the Code or Section 302 of ERISA), as applicable,
has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan subject to Title
IV of ERISA, Section 412 of the Code or Section 302 of ERISA, and
each Plan has complied in all material respects with the applicable provisions
of ERISA and the Code; (b) no termination of a Single Employer Plan has
occurred, and no Lien on the assets of the Borrower or any Significant
Subsidiary in favor of the PBGC or a Plan has arisen, during such five-year
period; (c) the present value of all accrued benefits under each Single
Employer Plan (based on those assumptions used to fund such Plans) did not, as
of the last annual valuation date for which a valuation report is available
prior to the date on which this representation is made or deemed made, exceed
the value of the assets of such Plan allocable to such accrued benefits by a
material amount; and (d) neither the Borrower nor any Commonly Controlled
Entity has had a complete or partial withdrawal from any Multiemployer Plan
that has resulted or could reasonably be expected to result in a material
liability under ERISA, and, to the knowledge of the Borrower or any Commonly
Controlled Entity, neither the Borrower nor any Commonly Controlled Entity
would become subject to any material liability under ERISA if the Borrower or
any Commonly Controlled Entity were to withdraw completely from all
Multiemployer Plans as of the valuation date most closely preceding the date on
which this representation is made or deemed made.  Neither the Borrower nor any Commonly
Controlled Entity has knowledge that any such Multiemployer Plan is in
Reorganization or Insolvent.


 


4.11         Investment Company Act; Other Regulations. 
The Borrower is not an “investment company”, or a company “controlled”
by an “investment company”, within the meaning of the Investment Company Act of
1940, as amended.  The Borrower is not
subject to regulation under any


 


30
















 


Requirement of Law
(other than Regulation X of the Board, the Public Utilities Commission of the
State of Colorado and the FERC under the Federal Power Act) that limits its
ability to incur Indebtedness.


 


4.12         Use of Proceeds.  The proceeds
of the Revolving Loans and the Letters of Credit shall be used to effect the Refinancing, to
pay fees and expenses incurred in connection therewith and for general
corporate purposes (including commercial paper support).


 


4.13         Accuracy of Information, etc.  The information, taken as a whole, contained
in this Agreement, the other Loan Documents, the Confidential Information
Memorandum or the other documents, certificates or statements furnished by or
on behalf of the Borrower to the Administrative Agent or the Lenders, or any of
them, for use in connection with the transactions contemplated by this
Agreement or the other Loan Documents, did not contain as of the date such
information was so furnished (or, in the case of the Confidential Information
Memorandum, together with all other information so furnished to the Lenders
prior to the Closing Date, as of the date of this Agreement), any untrue
statement of a material fact or omit to state a material fact necessary to make
the information contained herein or therein not misleading in light of the
circumstances under which such information was furnished.


 


4.14         Solvency.  The Borrower is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred in connection herewith will be, Solvent.


 


SECTION 5.   CONDITIONS PRECEDENT


 


5.1           Conditions to Initial Extension of Credit. 
The agreement of each Lender to make the initial extension of credit
requested to be made by it is subject to the satisfaction, prior to or
concurrently with the making of such extension of credit on the Closing Date,
of the following conditions precedent:


 


(a)  Credit
Agreement.  The Administrative Agent
shall have received this Agreement or, in the case of the Lenders, an Addendum,
executed and delivered by the Administrative Agent, the Borrower and each
Person listed on Schedule 1.1A.


 


(b)  Termination of Existing Credit
Facility.  The Administrative Agent
shall have received satisfactory evidence that the Existing Credit Agreement
shall have been terminated, all commitments thereunder shall have been
terminated and all amounts owing thereunder shall have been paid in full (the “Refinancing”).


 


(c)  Financial Statements.  The Lenders shall have received audited
consolidated financial statements of the Borrower for the 2003, 2004 and 2005
fiscal years, and such financial statements shall not, in the reasonable
judgment of the Lenders, reflect any material adverse change in the
consolidated financial condition of the Borrower, as reflected in the financial
statements contained in the Confidential Information Memorandum.


 


(d)  Approvals.  All governmental and third party approvals,
if any, required as of the Closing Date in connection with the Refinancing and
the transactions contemplated hereby shall have been obtained on satisfactory
terms and shall be in full force and effect.


 


(e)  Fees.  The Lenders and the Administrative Agent
shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of legal
counsel), on or before the Closing Date.


 


31

















 


(f)  Closing Certificate; Certified
Articles of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received (i) a
certificate of the Borrower, dated the Closing Date, substantially in the form
of Exhibit A, with appropriate insertions and attachments, including the
articles of incorporation of the Borrower certified by the relevant authority
of the jurisdiction of organization of the Borrower, and (ii) a long form
good standing certificate for the Borrower from its jurisdiction of
organization.


 


(g)  Legal Opinions.  The Administrative Agent shall have received
the following executed legal opinions:


 


(i) the
legal opinion of Jones Day, special New York counsel to the Borrower; and


 


(ii) the
legal opinion of Paula Connelly, Assistant General Counsel, Xcel Energy
Services Inc.


 


Each such legal opinion shall cover such
matters incident to the transactions contemplated by this Agreement as the
Administrative Agent may reasonably require.


 


5.2           Conditions to Each Extension of Credit. 
The agreement of each Lender to make any extension of credit requested
to be made by it on any date (including its initial extension of credit) is
subject to the satisfaction of the following conditions precedent:


 


(a)  Representations
and Warranties.  Each of the
representations and warranties made by the Borrower in or pursuant to the Loan
Documents (other than the representations and warranties contained in Sections
4.2 and 4.6, which representations and warranties need only be true and correct
on and as of the Closing Date) shall be true and correct in all material
respects on and as of such date as if made on and as of such date, except to
the extent any such representation or warranty is stated to relate solely to an
earlier date, in which case such representation or warranty shall have been
true and correct in all material respects as of such earlier date.


 


(b)  No
Default.  No Default or Event of Default
shall have occurred and be continuing on such date or after giving effect to
the extensions of credit requested to be made on such date.


 


(c)  Other
Documents.  In the case of any
extension of credit made on an Increased Revolving Commitment Closing Date, the
Administrative Agent shall have received such customary documents and
information as it may reasonably request.


 


Each borrowing by and issuance of a Letter of
Credit on behalf of the Borrower hereunder shall constitute a representation
and warranty by the Borrower as of the date of such extension of credit that
the conditions contained in this Section 5.2 have been satisfied.


 


SECTION 6.   AFFIRMATIVE COVENANTS


 


The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect, any Letter of
Credit remains outstanding or any Revolving Loan or other amount is owing to
any Lender or the Administrative Agent hereunder:


 


6.1           Financial Statements.  The Borrower
shall furnish to the Administrative Agent (which shall in turn furnish to the
Lenders):


 


32

















 


(a)  as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a copy
of the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as of the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, reported on without
a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, by Deloitte & Touche LLP or other
independent certified public accountants of nationally recognized standing; and


 


(b)  as soon as available, but in any event
not later than 45 days after the end of each of the first three quarterly
periods of each fiscal year of the Borrower, the unaudited consolidated balance
sheet of the Borrower and its consolidated Subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end of
such quarter, setting forth in each case in comparative form the figures for
the previous year, certified by a Responsible Officer as being fairly stated in
all material respects (subject to normal year-end audit adjustments).


 


All such financial statements shall present
fairly, in all material respects, the financial position of the Borrower and
its Subsidiaries and shall be prepared in reasonable detail and in accordance
with GAAP applied (except as approved by such accountants or officer, as the
case may be, and disclosed in reasonable detail therein) consistently
throughout the periods reflected therein and with prior periods.


 


6.2           Certificates; Other Information. 
The Borrower shall furnish to the Administrative Agent (which shall in
turn furnish to the Lenders, or, in the case of clause (c), to the relevant
Lender):


 


(a)  concurrently with the delivery of any
financial statements pursuant to Section 6.1, (i) a certificate of a
Responsible Officer stating that, to the best of such Responsible Officer’s
knowledge, during such period the Borrower has observed or performed all of its
covenants and other agreements, and satisfied every condition contained in this
Agreement and the other Loan Documents to which it is a party to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii) a compliance certificate containing all information
and calculations necessary for determining compliance by the Borrower with the
provisions of Section 7.1 of this Agreement as of the last day of the
fiscal quarter or fiscal year of the Borrower, as the case may be;


 


(b)  within five days after the same are
sent, copies of all financial statements and reports that the Borrower sends to
the holders of any class of its debt securities or public equity securities
and, within five days after the same are filed, copies of all reports on Forms
10-K, 10-Q and 8-K that the Borrower files with the SEC; and


 


(c)  promptly, such additional financial and
other information as any Lender may from time to time reasonably request
through the Administrative Agent.


 


6.3           Payment of Obligations and Taxes. 
The Borrower shall and shall cause each of its Significant Subsidiaries
to pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all its obligations (including, without
limitation, obligations with respect to taxes) of whatever nature which, if
unpaid, undischarged or otherwise unsatisfied are or might become a Lien or
other charge upon any properties of the Borrower or any Significant Subsidiary,
except that neither the Borrower nor any Subsidiary shall be required to pay,
discharge or otherwise satisfy any such obligation (i) whose amount,
applicability or validity is being contested in good faith by appropriate


 


33

















 


proceedings and
for which the Borrower or such Subsidiary has provided adequate reserves in
accordance with GAAP or (ii) where failure to pay, discharge or otherwise
satisfy such obligation could not, in the aggregate, reasonably be expected to
result in a Material Adverse Effect or (iii) in respect of any judgment in
the COLI Litigation, so long as no Default or Event of Default under Section 8(h) in
respect thereof has occurred and is continuing.


 


6.4           Maintenance of Existence; Compliance. 
The Borrower shall and shall cause each of its Significant Subsidiaries:


 


(a) to
preserve, renew and keep in full force and effect its organizational existence,
except as otherwise permitted by Section 7.3 or 7.4;


 


(b) to
take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except (i) as
otherwise permitted by Section 7.3 and (ii) to the extent that
failure to do so could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect; and


 


(c) to
comply with all Contractual Obligations and Requirements of Law, except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.


 


6.5           Maintenance of Property; Insurance. 
The Borrower shall and shall cause each of its Significant Subsidiaries
to (a) keep all property useful and necessary in its business in good
working order and condition, ordinary wear and tear excepted and except where
the failure to do so could not, in the aggregate, reasonably be expected to
result in a Material Adverse Effect, and (b) maintain with financially
sound and reputable insurance companies insurance on its property in at least
such amounts (subject to deductibles and self-retention limits) and against at
least such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business.


 


6.6           Inspection of Property; Books and Records; Discussions. 
The Borrower shall and shall cause each of its Significant Subsidiaries
to (a) keep proper books of records and account in which full, true and
correct entries in conformity with GAAP and all Requirements of Law shall be
made of all dealings and transactions in relation to its business and
activities and (b) from time to time during normal business hours and on
reasonable prior notice, permit representatives of any Lender to visit and
inspect any of its properties (subject to
such physical security requirements as the Borrower or the applicable
Significant Subsidiary may require) and examine and make abstracts from
any of its books and records (except to the
extent that such access is restricted by law or by a bona fide non-disclosure
agreement not entered into for the purpose of evading the requirements of this Section 6.6),
at any reasonable time and as often as may reasonably be desired and to
discuss the business, operations, properties and financial and other condition
of the Borrower and the Significant Subsidiaries with officers and employees of
the Borrower and the Significant Subsidiaries and with their independent
certified public accountants.


 


6.7           Notices.  Promptly
after any officer of the Borrower with responsibility for the matter in
question becomes aware thereof, the Borrower shall give notice to the
Administrative Agent (which shall in turn furnish such notice to the Lenders)
of:


 


(a)  the occurrence of any Default or Event
of Default;


 


(b)  any (i) default or event of
default under any Contractual Obligation of the Borrower or any Significant
Subsidiary or (ii) litigation, investigation or proceeding that may exist
at any


 


34

















 


time between the
Borrower or any Significant Subsidiary, on the one hand, and any Governmental
Authority, on the other hand, that in either case, if not cured could
reasonably be expected to have a Material Adverse Effect;


 


(c)  (i) the occurrence of any
Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan or (ii) the institution of proceedings or the
taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the termination, Reorganization or Insolvency of, any Plan, which in
any case could reasonably be expected to have a Material Adverse Effect; and


 


(d)  any development or event that
has had or could reasonably be expected to have a Material Adverse Effect.


 


Each notice pursuant to this Section 6.7
shall be accompanied by a statement of a Responsible Officer setting forth
details of the occurrence referred to therein and stating what action the
Borrower or such Significant Subsidiary proposes to take with respect thereto.


 


6.8           Ownership of Significant
Subsidiaries. Except as permitted by Section 6.10, 7.3 or
7.4, the Borrower shall at all times, directly or indirectly own, beneficially
and of record, 100% of each class of issued and outstanding common stock of
each Significant Subsidiary.


 


6.9           Scope of Business.  The Borrower shall, and shall cause each
Significant Subsidiary to, engage primarily in energy-related businesses.


 


6.10         Significant Subsidiaries.  So long as no Default or Event of Default
then exists or arises as a result thereof, the Borrower may from time to time
by written notice delivered to the Administrative Agent:


 


(a) designate
any Subsidiary as a Significant Subsidiary; and


 


(b) with
respect to any Designated Significant Subsidiary, revoke its designation as a
Significant Subsidiary; provided that the assets of such Designated
Significant Subsidiary could have been
disposed of pursuant to the provisions of Section 7.4 if such transaction
were treated as a Disposition of the assets of such Designated Significant Subsidiary.


 


SECTION 7.   NEGATIVE COVENANTS


 


The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect, any Letter of
Credit remains outstanding or any Revolving Loan or other amount is owing to
any Lender or the Administrative Agent hereunder:


 


7.1           Ratio of Funded Debt to Total Capital. 
The Borrower shall not permit the ratio of Funded Debt of the Borrower
and its Subsidiaries on a consolidated basis to Total Capital as at the last
day of any fiscal quarter of the Borrower to exceed 0.65 to 1.00.


 


7.2           Liens.  The Borrower
shall not, and shall not permit any of its Significant Subsidiaries to,
directly or indirectly, create, incur, assume or suffer to exist any Lien upon
any of its property, whether now owned or hereafter acquired, except for
Permitted Liens.


 


35

















 


7.3           Fundamental Changes.  The Borrower
shall not, and shall not permit any of its Significant Subsidiaries to,
directly or indirectly, merge or consolidate with any Person, except that, if
after giving effect thereto no Default or Event of Default would exist, this Section 7.3
shall not apply to (a) any merger or consolidation of the Borrower with
any one or more Persons (including any Subsidiary), so long as the successor
entity (if other than the Borrower) (i) is a Person organized and duly
existing under the law of any state of the United States and (ii) assumes,
in form reasonably satisfactory to the Administrative Agent, all of the
obligations of the Borrower under this Agreement, (b) any merger or
consolidation of a Significant Subsidiary with another Subsidiary, provided
that the continuing Person shall be a Significant Subsidiary, and (c) any merger or consolidation of a
Significant Subsidiary with another Person if after giving effect thereto the
survivor is no longer a Significant Subsidiary and the assets of such
Significant Subsidiary could have been Disposed of pursuant to the provisions
of Section 7.4 if such transaction were treated as a Disposition of the
assets of such Significant Subsidiary.  In
the event of any merger or consolidation of or by the Borrower in which the Borrower
is not the surviving entity, the surviving entity of such merger or
consolidation shall deliver to the Administrative Agent for the benefit of the Lenders all
information reasonably necessary to comply with the identification requirements
of the Act (as defined in Section 10.17).


 


7.4           Disposition of Property.  The Borrower shall not, directly or
indirectly, Dispose of, in one transaction or a series of transactions, all or
substantially all of its business or property, whether now owned or hereafter acquired.


 


7.5           Transactions with Affiliates.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, enter into any
transaction with any Affiliate (other than the Borrower or any Significant
Subsidiary) unless such transaction is upon fair and reasonable terms no less
favorable to the Borrower or such Significant Subsidiary than it would obtain
in a comparable arm’s length transaction with a Person that is not an
Affiliate; provided, however, that this Section 7.5 shall
not prohibit any transaction subject to the jurisdiction of the FERC or any applicable state
regulatory commission.


 


7.6           Swap Agreements.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, enter into any
Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Borrower or any Significant Subsidiary has actual
exposure or in respect of an anticipated transaction and (b) Swap
Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or
investment of the Borrower or any Significant Subsidiary.


 


7.7           Clauses Restricting Subsidiary Distributions. 
The Borrower shall not, and shall not permit any of its Significant
Subsidiaries to, directly or indirectly, enter into or suffer to exist or
become effective (including by way of amendment, supplement or other
modification of an agreement existing on the Closing Date) any consensual
encumbrance or restriction on the ability of any Significant Subsidiary of the
Borrower to make payments, directly or indirectly, to its shareholders by way
of dividends, repayment of loans or intercompany charges, or other returns on
investments that is more restrictive than any such encumbrance or restriction
applicable to such Significant Subsidiary on the Closing Date; provided
that this Section 7.7 shall not apply to (a) limitations or
restrictions imposed by law or in regulatory proceedings or (b) financial
covenants contained in any agreement or indenture requiring compliance with
financial tests or ratios, so long as such financial covenants could not
reasonably be expected to impair the Borrower’s ability to repay the
Obligations as and when due.


 


36

















 


SECTION 8.   EVENTS OF DEFAULT


 


If any of the following events shall occur and be continuing:


 


(a)  the Borrower shall fail to pay any
principal of any Revolving Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Revolving Loan or Reimbursement Obligation, or any other amount
payable hereunder or under any other Loan Document, within five days after any
such interest or other amount becomes due in accordance with the terms hereof;
or


 


(b)  any representation or warranty made or
deemed made by the Borrower herein or in any other Loan Document or that is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material
respect on or as of the date made or deemed made; or


 


(c)  the Borrower shall default in the
observance or performance of any agreement contained in Section 6.4(a) (with
respect to the Borrower only), Section 6.7(a) or Section 7 of
this Agreement; or


 


(d)  the Borrower shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through (c) of
this Section), and such default shall continue unremedied for a period of 30
days after notice to the Borrower from the Administrative Agent or the Required
Lenders; or


 


(e)  any event or condition occurs that
results in any Material Indebtedness becoming due prior to its scheduled
maturity or that enables or permits the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (e) shall not apply to (i) secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the property
or assets securing such Indebtedness, (ii) Indebtedness that becomes due
as a result of (A) the Borrower or any Significant Subsidiary effecting an
optional redemption, voluntary prepayment, voluntary defeasance or voluntary
repurchase of such Indebtedness or (B) a similar event or condition
occurring at the election of the Borrower or any Significant Subsidiary or (iii) Swap Agreements
and Commodity Swap Agreements that are cancelled or terminated at the option of
either party thereto, other than as a result of a default, event of default or
early termination event;
or


 


(f)  (i) the Borrower or any
Significant Subsidiary shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or the Borrower or any Significant Subsidiary
shall make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against the Borrower or any Significant Subsidiary any case,
proceeding or other action of a nature referred to in clause (i) above
that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed or undischarged for
a period of 60 days; or (iii) there shall be commenced against the
Borrower or any Significant Subsidiary any case, proceeding or other action
seeking issuance of a 


 


37

















 


warrant of
attachment, execution, distraint or similar process against all or any
substantial part of its assets that results in the entry of an order for any
such relief that shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) the Borrower
or any Significant Subsidiary shall take any corporate action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii), or (iii) above; or (v) the
Borrower or any Significant Subsidiary shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they become
due; or


 


(g)  (i) any
Person shall engage in any non-exempt “prohibited transaction” (as defined in Section 406
of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan subject to Section 412 of the
Code or Section 302 of ERISA or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan, any Commonly
Controlled Entity shall, or is reasonably likely to, incur any unpaid liability
or (vi) any other similar event or condition shall occur or exist with
respect to a Plan; and in each case in clauses (i) through (vi) above,
such event or condition, together with all other such events or conditions, if
any, could reasonably be expected to have a Material Adverse Effect; or


 


(h)  one or more judgments or decrees shall
be entered against the Borrower or any Significant Subsidiary involving in the
aggregate a liability (not paid or fully covered by insurance as to which the
relevant insurance company has acknowledged coverage) of $50,000,000 or more,
and such judgments or decrees shall not have been vacated, discharged, stayed
or bonded pending appeal within 30 days from the entry thereof; provided
that a judgment in the COLI Litigation shall not constitute a Default or an
Event of Default so long as the Borrower, any of its Subsidiaries and/or Xcel
Energy Inc. has appealed such judgment, is in discussions in good faith to
enter into a settlement of such matter and/or has entered into a settlement
agreement in respect thereof and is in compliance in all material respects with
the terms thereof; provided, however, that not all legal appeals
in connection therewith have been exhausted and no assets of the Borrower or
its Subsidiaries have been levied against, garnished or attached to satisfy
such judgment; or


 


(i)  a Change in Control shall occur;


 


then, and in any such event, (A) if such
event is an Event of Default specified in paragraph (f) above with respect
to the Borrower, automatically the Revolving Commitments shall immediately
terminate and the Revolving Loans (with accrued interest thereon) and all other
amounts owing under this Agreement and the other Loan Documents shall immediately
become due and payable, and (B) if such event is any other Event of
Default, either or both of the following actions may be taken:  (i) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the Required
Lenders, the Administrative Agent shall, by notice to the Borrower declare the
Revolving Commitments to be terminated forthwith, whereupon the Revolving
Commitments shall immediately terminate; and (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Revolving Loans (with accrued interest thereon) and all other
amounts owing under this Agreement and the other Loan


 


38

















 


Documents to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letters of Credit. 
During the continuance of an Event of Default, the Administrative Agent
may, or upon the request of the Required Lenders shall, apply any Excess
Balance (as defined below) to repay the Obligations.  If all Obligations (other than L/C
Obligations in respect of undrawn Letters of Credit) have been paid in full,
the Excess Balance shall be returned to the Borrower (or such other Person as
may be lawfully entitled thereto).  If no
Event of Default is then continuing, the Administrative Agent shall return to
the Borrower the balance in the cash collateral account.  For purposes hereof, “Excess Balance” means
the amount by which the balance in the cash collateral account exceeds the
undrawn and unexpired amount of the Letters of Credit.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived by the Borrower.


 


SECTION 9.   THE AGENTS


 


9.1           Appointment.  Each Lender
hereby irrevocably designates and appoints the Administrative Agent as the
agent of such Lender under this Agreement and the other Loan Documents, and
each such Lender irrevocably authorizes the Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto.  
Notwithstanding any provision to the contrary elsewhere in this Agreement,
the Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Administrative Agent.


 


9.2           Delegation of Duties.  The
Administrative Agent may execute any of its duties under this Agreement and the
other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  The Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or attorneys
in-fact selected by it with reasonable care.


 


9.3           Exculpatory Provisions.  Neither any
Agent nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner
to any of the Lenders for any recitals, statements, representations or
warranties made by the Borrower or any officer thereof contained in this
Agreement or any other Loan Document or in any certificate, report, statement
or other document referred to or provided for in, or received by the Agents
under or in connection with, this Agreement or any other Loan Document or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Loan Document or for any failure of the Borrower
to perform its obligations hereunder or thereunder.  The Agents shall not be under any obligation
to any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the properties, books or records of the
Borrower.  Neither any Agent nor any of
their respective officers, directors, employees, agents, attorneys-in-fact or affiliates
shall, except as expressly set forth herein and in the other Loan Documents,


 


39

















 


have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as an Agent or any of its Affiliates in any
capacity.


 


9.4           Reliance by Administrative Agent. 
The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including counsel to
the Borrower), independent accountants and other experts selected by the
Administrative Agent.  The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless such Note had been assigned in accordance with the provisions
of Section 10.6 hereof.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders (or, if so
specified by this Agreement, all Lenders) as it deems appropriate or it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or
continuing to take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Revolving Loans.


 


9.5           Notice of Default.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Administrative Agent
has received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default”.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give
notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or,
if so specified by this Agreement, all Lenders); provided that unless
and until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders.


 


9.6           Non-Reliance on Agents and Other Lenders. 
Each Lender expressly acknowledges that neither the Agents nor any of
their respective officers, directors, employees, agents, attorneys-in-fact or
affiliates have made any representations or warranties to it and that no act by
any Agent hereafter taken, including any review of the affairs of the Borrower
or any affiliate of the Borrower, shall be deemed to constitute any
representation or warranty by any Agent to any Lender.  Each Lender represents to the Agents that it
has, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and its
affiliates and made its own decision to make its Revolving Loans hereunder and
enter into this Agreement.  Each Lender
also represents that it will, independently and without reliance upon any Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
and other condition and creditworthiness of the Borrower and its affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or


 


40
















 


otherwise),
prospects or creditworthiness of the Borrower or any affiliate of the Borrower
that may come into the possession of the Administrative Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates.


 


9.7           Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Revolving Commitments shall have
terminated and the Revolving Loans shall have been paid in full, ratably in
accordance with such Aggregate Exposure Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Revolving Loans) be imposed on, incurred by or asserted against such Agent
in any way relating to or arising out of, the Revolving Commitments, this
Agreement, any of the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by such Agent under or in connection
with any of the foregoing; provided that no Lender shall be liable for
the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements that are
found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such Agent’s gross negligence or willful
misconduct.  The agreements in this Section shall
survive the payment of the Revolving Loans and all other amounts payable
hereunder.


 


9.8           Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with the
Borrower as though such Agent were not an Agent.  With respect to its Revolving Loans made or
renewed by it and with respect to any Letter of Credit issued or participated
in by it, each Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
it were not an Agent, and the terms “Lender” and “Lenders” shall include each
Agent in its individual capacity.


 


9.9           Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under Section 8(a) or
Section 8(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Revolving Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 days following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan
Documents.


 


41

















 


9.10         Documentation Agents and Syndication
Agent.  Neither any Documentation
Agent nor the Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.


 


SECTION 10.   MISCELLANEOUS


 


10.1         Amendments and Waivers.  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and the Borrower may,
or, with the written consent of the Required Lenders, the Administrative Agent
and the Borrower may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the
Borrower hereunder or thereunder or (b) waive, on such terms and
conditions as the Required Lenders or the Administrative Agent, as the case may
be, may specify in such instrument, any of the requirements of this Agreement
or the other Loan Documents or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment,
supplement or modification shall (i) except as set forth in Section 2.17,
forgive the principal amount or extend the final scheduled date of maturity of
any Revolving Loan or Reimbursement Obligation, reduce the stated rate of any
interest or fee payable hereunder (except in connection with the waiver of
applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Required Lenders)) or extend the
scheduled date of any payment thereof, or increase the amount or extend the
expiration date of any Lender’s Revolving Commitment, in each case without the
written consent of each Lender directly affected thereby; (ii) eliminate
or reduce the voting rights of any Lender under this Section 10.1 without
the written consent of such Lender; (iii) reduce any percentage specified
in the definition of Required Lenders or consent to the assignment or transfer
by the Borrower of any of its rights and obligations under this Agreement and
the other Loan Documents, in each case without the written consent of all
Lenders; (iv) amend, modify or waive any provision of Section 2.11(a) or
Section 2.11(b) without the written consent of each Lender directly
affected thereby, (v) amend, modify or waive any provision of Section 9
without the written consent of the Administrative Agent; or (vi) amend,
modify or waive any provision of Section 3 without the written consent of
each Issuing Lender.  Notwithstanding
anything contained in this Section 10.1, the Revolving Termination Date
with respect to any Lender may not be extended with respect to such Lender
without its written consent.  Any such
waiver and any such amendment, supplement or modification shall apply equally to
each of the Lenders and shall be binding upon the Borrower, the Lenders, the
Administrative Agent and all future holders of the Revolving Loans.  In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the other Loan Documents, and any Default or
Event of Default waived shall be deemed to be cured and not continuing; but no
such waiver, except to the extent expressly provided therein, shall extend to
any subsequent or other Default or Event of Default, or impair any right
consequent thereon.  Notwithstanding the
foregoing, the Administrative Agent may waive payment of the fee required by Section 10.6(b)(ii)(B) without
obtaining the consent of any other party to this Agreement


 


10.2         Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
electronic transmission or telecopy), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered, or
three Business Days after being deposited in the mail, postage prepaid, or, in
the case of telecopy notice, when received, addressed as follows in the case of
the Borrower and the Administrative Agent, and as set forth in an
administrative questionnaire delivered to the Administrative Agent in the case
of the Lenders, or to such other address as may be hereafter notified by the
respective parties hereto:


 


	
  Borrower:

  	
  414
  Nicollet Mall

  
	
   

  	
  Minneapolis,
  MN 55401

  



 


42

















 


	
   

  	
  Attention:
  Treasurer

  
	
   

  	
  Telecopy:
  612-215-5311

  
	
   

  	
  Telephone:
  612-215-4627

  
	
   

  	
   

  
	
  Administrative
  Agent:

  	
  c/o
  Loan and Agency Services Group

  
	
   

  	
  1111
  Fannin, 10th Floor

  
	
   

  	
  Houston,
  TX 77002

  
	
   

  	
  Attention:
  Jamie Garcia

  
	
   

  	
  Telecopy:
  713-427-6307

  
	
   

  	
  Telephone:
  713-750-2377

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  270
  Park Avenue, 4th Floor

  
	
   

  	
  New
  York, NY 10017

  
	
   

  	
  Attention:
  Peter Ling

  
	
   

  	
  Telecopy:
  212-270-0213

  
	
   

  	
  Telephone:
  212-270-4676

  
	
   

  	
   

  
	
  and,
  if regarding Letters of 

  	
   

  
	
  Credit,
  with a copy to:

  	
  JPMorgan
  Chase LOC Tampa

  
	
   

  	
  10420
  Highland Mn Dr

  
	
   

  	
  Block
  2, Floor 4

  
	
   

  	
  Tampa,
  FL 33610

  
	
   

  	
  Attention:
  James Alonzo

  
	
   

  	
  Telecopy:
  813-432-5161

  
	
   

  	
  Telephone:
  813-432-6339 

  
	
   

  	
   

  
	
   

  	
  And
  if to any other Issuing Lender, at its address for notices set forth in its
  Issuing Lender Agreement.

  



; provided that any notice, request or
demand to or upon the Administrative Agent or the Lenders shall not be
effective until received.


 


Unless and until the
Administrative Agent is notified in writing by the Borrower to the contrary,
the Borrower hereby authorizes the Administrative Agent to rely on any notices
in respect of the making, extension, conversion or continuation of Revolving
Loans and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans given by any Responsible Officer or any designee of a
Responsible Officer of which the Administrative Agent is notified in
writing.  Notices by the Borrower in
respect of the making, extension, conversion or continuation of Revolving Loans
and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans may be given telephonically, and the Borrower agrees that the
Administrative Agent may rely on any such notices made by any person or persons
which the Administrative Agent in good faith believes to be acting on behalf of
the Borrower.  The Borrower agrees to
deliver promptly to the Administrative Agent a written confirmation of any
telephonic notice, if such confirmation is requested by the Administrative
Agent.  Notices and other communications
to the Lenders hereunder may be delivered or furnished by electronic
communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.


 


43

















 


Information
required to be delivered pursuant to Sections 6.1 and 6.2(b) shall be
deemed to have been delivered on the date on which the Borrower provides notice
to the Administrative Agent (which notice the Administrative Agent shall
promptly provide to the Lenders)  that
such information has been posted on the SEC website on the Internet at
sec.gov/edaux/searches.htm, on the Borrower’s IntraLinks site at intralinks.com
or at another website identified in such notice and accessible by the Lenders
without charge.


 


10.3         No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.


 


10.4         Survival of Representations and
Warranties.  All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of
the Revolving Loans and other extensions of credit hereunder.


 


10.5         Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all its out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to the Borrower prior
to the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the Administrative Agent shall deem appropriate, (b) to pay or
reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the other Loan Documents and any such other
documents, including the reasonable fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) to each Lender
and of counsel to the Administrative Agent, (c) to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender
and the Administrative Agent and their respective officers, directors,
employees, affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Revolving Loans or the violation of,
noncompliance with or liability under, any Environmental Law applicable to the
operations of the Borrower or any of its Subsidiaries or any of their
properties and the reasonable fees and expenses of legal counsel in connection
with claims, actions or proceedings by any Indemnitee against the Borrower
under any Loan Document (all the foregoing in this clause (d), collectively,
the “Indemnified Liabilities”), provided, that the Borrower shall
have no obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to 


 


44

















 


the extent such
Indemnified Liabilities resulted from the gross negligence or willful
misconduct of such Indemnitee.  Without
limiting the foregoing, and to the extent permitted by applicable law, the
Borrower agrees not to assert and to cause its Subsidiaries not to assert, and
hereby waives and agrees to cause its Subsidiaries to waive, all rights for
contribution or any other rights of recovery that arise as a result of such
Indemnitee’s status as a Lender or the Administrative Agent, or an officer, director,
employee, affiliate, agent or controlling person thereof, with respect to all
claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, under or related to Environmental Laws,
that any of them might have by statute or otherwise against any Indemnitee,
except to the extent that such claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses have resulted from the gross
negligence or willful misconduct of such Indemnitee.  All amounts due under this Section 10.5
shall be payable not later than 10 days after written demand therefor.  Statements payable by the Borrower pursuant
to this Section 10.5 shall be submitted to the Borrower at the address of
the Borrower set forth in Section 10.2, or to such other Person or address
as may be hereafter designated by the Borrower in a written notice to the
Administrative Agent.  The agreements in
this Section 10.5 shall survive repayment of the Revolving Loans and all
other amounts payable hereunder.


 


10.6      Successors and
Assigns; Participations and Assignments. 
(a)  The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any affiliate of an Issuing Lender that
issues any Letter of Credit), except that (i) the Borrower may not assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer
by the Borrower without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section.


 


(b)(i)  Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more financial institutions or other entities
(each, an “Assignee”) all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Revolving Commitments
and the Revolving Loans at the time owing to it) with the prior written consent
of:


 


(A) the Borrower (such
consent not to be unreasonably withheld or delayed), provided that no
consent of the Borrower shall be required for an assignment to a Lender or, if
an Event of Default has occurred and is continuing, any other Person; and


 


(B) the Administrative
Agent and each Issuing Lender.


 


(ii) Assignments shall
be subject to the following additional conditions:


 


(A) except in the case
of an assignment to a Lender or an affiliate of a Lender or an assignment of
the entire remaining amount of the assigning Lender’s Revolving Commitments or
Revolving Loans, the amount of the Revolving Commitments or Revolving Loans of
the assigning Lender subject to each such assignment (determined as of the date
the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower, the Administrative Agent and each Issuing Lender otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (2) such amounts shall be
aggregated in respect of each Lender and its affiliates, if any;


 


(B) the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee of $3,500; and


 


45

















 


(C) the Assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
administrative questionnaire.


 


(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified
in each Assignment and Assumption the Assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.12, 2.13, 2.14 and 10.5 in respect of the period
that it was a Lender).  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 10.6 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.


 


(iv)  The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Revolving Commitments of, and
principal amount of the Revolving Loans and L/C Obligations owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lenders and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.


 


(v)  Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an Assignee, the Assignee’s completed
administrative questionnaire (unless the Assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the
Register.  No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.


 


(c)(i)  Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Revolving Commitments and the Revolving Loans owing to it); provided
that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (C) the Borrower, the
Administrative Agent, each Issuing Lender and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
Any agreement pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement may provide that such
Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver that (1) requires the consent of such
Lender pursuant to the proviso to the second sentence of Section 10.1 and (2) directly
affects such Participant.  Subject to
paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as
though it were a Lender.


 


46

















 


(ii)  A Participant shall not be entitled to
receive any greater payment under Section 2.12 or 2.13 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent.  In addition, any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section 2.13
unless such Participant complies with Section 2.13(d).


 


(d)  Any Lender
may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations to a Federal Reserve
Bank.


 


(e)  The Borrower, upon receipt of written
notice from the relevant Lender, agrees to issue Notes to any Lender requiring
Notes to facilitate transactions of the type described in paragraph (d) above.


 


10.7         Adjustments; Set-off.  (a)  Except to the extent that this
Agreement expressly provides for payments to be allocated to a particular
Lender, if any Lender (a “Benefitted Lender”) shall, at any time after
the Revolving Loans and other amounts payable hereunder shall immediately
become due and payable pursuant to Section 8, receive any payment of all
or part of the Obligations owing to it, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 8(f), or otherwise),
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of the Obligations owing to such other Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations owing to each such
other Lender, or shall provide such other Lenders with the benefits of any such
collateral, as shall be necessary to cause such Benefitted Lender to share the
excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such Benefitted Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest.


 


(b)  In addition to any rights and remedies of
the Lenders provided by law, each Lender shall have the right, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower
to the extent permitted by applicable law, upon any amount becoming due and
payable by the Borrower hereunder (whether at the stated maturity, by acceleration
or otherwise), to set off and appropriate and apply against such amount any and
all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured,
at any time held or owing by such Lender or any branch or agency or Affiliate
thereof to or for the credit or the account of the Borrower, as the case may
be.  Each Lender agrees promptly to
notify the Borrower and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such setoff and application.


 


10.8         Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.


 


10.9         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 


 


47

















 


prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.


 


10.10       Integration.  This Agreement and the other Loan Documents
represent the entire agreement of the Borrower, the Administrative Agent and
the Lenders with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.


 


10.11       GOVERNING
LAW.  THIS AGREEMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.


 


10.12       Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and
unconditionally:


 


(a)  submits for
itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States for the Southern District of New York, and
appellate courts from any thereof;


 


(b)  consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;


 


(c)  agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such party at its address set forth or referenced in Section 10.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;


 


(d)  agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and


 


(e)  waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.


 


10.13       Acknowledgements.  The Borrower hereby acknowledges that:


 


(a)     it has been advised by
counsel in the negotiation, execution and delivery of this Agreement and the
other Loan Documents;


 


(b)     neither the Administrative
Agent nor any Lender has any fiduciary relationship with or duty to the
Borrower arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between Administrative Agent and
Lenders, on one hand, and the Borrower, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and


 


48

















 


(c)     no joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.


 


10.14       Confidentiality.  Each of the Administrative Agent and each
Lender agrees to keep confidential all information provided to it by or on
behalf of the Borrower, the Administrative Agent or any Lender pursuant to or
in connection with this Agreement and to use such information solely in
connection with evaluating, administering, structuring and/or approving the
credit facility contemplated hereby; provided that nothing herein shall
prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any
affiliate thereof, solely for the purpose of evaluating, administering,
structuring and/or approving the credit facility contemplated hereby, (b) subject
to an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee or any direct or indirect counterparty (or any
professional advisor to such counterparty) to any Swap Agreement with respect
to this Agreement, the Revolving Loans or the Revolving Commitments, (c) to
its employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, solely for the purpose of
evaluating, administering, structuring and/or approving the credit facility
contemplated hereby, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if
requested or required to do so in connection with any litigation or similar
proceeding, (g) that has been publicly disclosed, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy
hereunder or under any other Loan Document.


 


10.15       WAIVERS
OF JURY TRIAL.  THE BORROWER, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.


 


10.16       Delivery of Addenda.  Each initial Lender shall become a party to
this Agreement by delivering to the Administrative Agent an Addendum duly
executed by such Lender.


 


10.17       USA Patriot Act Notice.  Each
Lender hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
to identify the Borrower in accordance with the Act.


 


10.18       Existing Credit Agreement.  The Borrower, JPMorgan Chase Bank, N.A., as
administrative agent, and the “Lenders” (as defined in the Existing Credit
Agreement) party to the Existing Credit Agreement comprising the “Required
Lenders” as defined therein, hereby agree that (i) the commitments and all
other obligations of the Lenders under the Existing Credit Agreement shall
terminate in their entirety immediately and automatically upon the
effectiveness of this Agreement, without further action by any party to the
Existing Credit Agreement, (ii) all accrued fees under the Existing Credit
Agreement shall be due and payable at such time and (iii) subject to the
funding loss indemnities in the Existing Credit Agreement, the Borrower may
prepay any and all loans outstanding thereunder on the date of effectiveness of
this Agreement.


 


49
















 


IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above
written.


 


	
   

  	
  PUBLIC
  SERVICE COMPANY OF COLORADO

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George E. Tyson, II

  
	
   

  	
   

  	
  Name:
  George E. Tyson II

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  



 


50

















 


	
   

  	
  JPMORGAN
  CHASE BANK, N.A. as Administrative Agent and as a Lender 

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. DeForge

  
	
   

  	
   

  	
  Name:
  Michael J. DeForge

  
	
   

  	
   

  	
  Title:
  Vice President

  



 


51

















 


	
   

  	
  BARCLAYS
  BANK PLC, as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sydney Dennis

  
	
   

  	
   

  	
  Name:
  Sydney Dennis

  
	
   

  	
   

  	
  Title:
  Director

  



 


52

















 


	
   

  	
  BMO
  CAPITAL MARKETS, as Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cahal Carmody

  
	
   

  	
   

  	
  Name:
  Cahal Carmody

  
	
   

  	
   

  	
  Title:
  Vice President

  



 


53

















 


	
   

  	
  THE
  BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH, as Documentation Agent and as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Matthew A. Ross

  
	
   

  	
   

  	
  Name:
  Matthew A. Ross

  
	
   

  	
   

  	
  Title:
  Vice President & Manager

  



 


54

















 


	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION, as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Keven D. Smith

  
	
   

  	
   

  	
  Name:
  Keven D. Smith

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  



 


55

















 


Schedule 1.1A


 


Revolving Commitments


 


	
  Lenders

  	
   

  	
  Revolving Commitment

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  47,444,444.45

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  $

  	
  47,444,444.45

  	
   

  
	
  Bank of America

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  The Bank of New York

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  BMO Capital Markets Financing, Inc.

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  Citicorp USA, Inc.

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  KeyBank National Association

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  Morgan Stanley Bank

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  The Royal Bank of Scotland PLC

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  UBS Loan Finance LLC

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  Wells Fargo Bank N.A.

  	
   

  	
  $

  	
  37,333,333.33

  	
   

  
	
  Credit Suisse, Cayman Islands Branch

  	
   

  	
  $

  	
  24,888,888.89

  	
   

  
	
  William Street Commitment Corporation

  	
   

  	
  $

  	
  24,888,888.89

  	
   

  
	
  Lehman Brothers Bank, FSB

  	
   

  	
  $

  	
  24,888,888.89

  	
   

  
	
  Merrill Lynch Bank USA

  	
   

  	
  $

  	
  24,888,888.89

  	
   

  
	
  Mizuho Corporate Bank, Ltd.

  	
   

  	
  $

  	
  24,888,888.90

  	
   

  
	
  U.S. Bank National Association

  	
   

  	
  $

  	
  24,888,888.90

  	
   

  
	
  Amarillo National Bank

  	
   

  	
  $

  	
  7,777,777.78

  	
   

  
	
  Total

  	
   

  	
  $

  	
  700,000,000.00

  	
   

  



 
















 


SCHEDULE 1.1B


 


EXISTING LETTERS OF CREDIT


Public Service Company of
Colorado


 


1.           Letter of
Credit No. SLT440670


·      Face Amount: $10,875.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: Town of Parker


·      Expiration: February 25, 2007


 


2.             Letter of Credit No. SLT751320


·      Face Amount: $1,200,000.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: Antelope Real Estate Company LLC


·      Expiration: July 2, 2007, with automatic
renewal


 


3.             Letter of Credit No. SLT430100


·      Face Amount: CAD580,000.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: Independent System Operator


·      Expiration: March 26, 2007


 


4.             Letter of Credit No. CPCS-220192


·      Face Amount: $300,000.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: British Columbia Transmission Corporation


·      Expiration: December 15, 2006, with automatic
renewal


 


5.             Letter of Credit No. SLT430758


·      Face Amount: $3,000,000.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: U.S. Environmental Protection Agency


·      Expiration: December 1, 2007, with automatic
renewal


 


6.             Letter of Credit No. CPCS-201171


·      Face Amount: $932,755.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: California Independent System Operator


·      Expiration: August 24, 2007, with automatic
renewal


 


7.             Letter of Credit No. CPCS-202503


·      Face Amount: $5,000.00


·      Issued by: JPMorgan Chase Bank, N.A.


·      Beneficiary: Town of Parker (Hess Project)


·      Expiration: September 23, 2007


 

















 


PSCo Schedules


 


SCHEDULE 4.1


 


FINANCIAL CONDITION


 


In
addition to the matters disclosed in the Financial Statements and Supplementary
Data in Item 8 of the Borrower’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2005 and the Notes thereto, as well as the matters
disclosed in the Financial Statements in Item 1 of the Borrower’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006, and the
Notes thereto, the Borrower and its Significant Subsidiaries have the following
material Guarantee Obligations, contingent liabilities, liabilities for taxes, long-term
leases, forward or long-term commitments, including interest rate or foreign
currency swaps and exchange transactions, and obligations in respect of
derivatives:


 


NONE


 


1

















 


SCHEDULE 4.2


 


EVENTS AND DEVELOPMENTS SINCE DECEMBER
31, 2005


 


1.             See disclosure regarding the
Borrower and its Subsidiaries in the Borrower’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2005 filed with the SEC (the “2005 Form 10-K”).


 


2.             See disclosure regarding the
Borrower and its Subsidiaries in the Borrower’s Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2006, June 30, 2006 and September 30,
2006 filed with the SEC (the “2006 Form 10-Qs”).


 


3.             The following disclosure
contains updated information with respect to certain of the matters discussed
in the 2005 Form 10-K and the 2006 Form 10-Qs:


 


NONE


 


1

















 


SCHEDULE 4.6


 


LITIGATION


 


1.             See disclosure regarding the
Borrower and its Subsidiaries (i) under the headings “ELECTRIC UTILITY
OPERATIONS — Summary of Recent Federal Regulatory Developments”, “— Ratemaking
Principles — Pending and Recently Concluded
Regulatory Proceedings — FERC”, and “— Pending and Recently Completed Regulatory Proceedings — CPUC”
in Item 1 of the Borrower’s 2005 Form 10-K, and (ii) under the
headings “Tax Matters,” “Environmental Contingencies,” and “Legal Contingencies”
in Note 12 to the Consolidated Financial Statements of the Borrower and its
subsidiaries as of and for the year ended December 31, 2005, in Item 8 of
the Borrower’s 2005 Form 10-K.


 


2.             See disclosure regarding the
Borrower and its Subsidiaries in Note 2 (Regulation) and Note 3 (Commitments
and Contingent Liabilities) in its Form 10-Q for the quarter ended March 31,
2006 and in Note 2 (Regulation), Note 3 (Tax Matters — Corporate Owned Life
Insurance) and Note 4 (Commitments and Contingent Liabilities) in its Forms
10-Q for the quarters ended June 30, 2006 and September 30, 2006.


 


1

















 


SCHEDULE 4.7


 


OWNERSHIP OF PROPERTIES


 


Other
than those assets disposed of in the ordinary course of business, Borrower
and/or its Significant Subsidiaries have disposed of the following material
assets since September 30, 2006:


 


NONE


 


1

















 


SCHEDULE 7.2


 


EXISTING LIENS


Public Service Company of
Colorado


 


1.             Liens created under the
Indenture, dated as of October 1, 1993, between the Borrower and U.S. Bank
Trust National Association (formerly First Trust of New York, National
Association), a national banking association, as successor trustee, to Morgan
Guarantee Trust Company of New York, as supplemented and amended from time to
time, which is a Lien on all assets related to the Borrower’s electric utility business,
now owned or hereafter acquired, securing indebtedness, as described in the
Borrower’s Consolidated Statements of Consolidation contained in the Borrower’s
2006 Form 10-Q dated September 30th, 2006.


 


2.             Capital Lease between Young
Gas Storage Company and the Borrower dated as of June 1995 for the lease
of a gas storage facility. The lease will expire in May 2025.


 


3.             Capital Lease between WYCO
and the Borrower dated as of December 1999 for the lease of a natural gas
pipeline. The lease will expire in November 2029.