Document:

EX-10.1

CREDIT AGREEMENT

Dated as of August 11, 2006

UGI UTILITIES, INC., a Pennsylvania corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) listed on the
signature pages hereof, WACHOVIA BANK, NATIONAL ASSOCIATION, as syndication agent, and CITIBANK,
N.A. (“Citibank”), as agent (the “Agent”) for the Lenders (as hereinafter defined),
agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

"Advance” means a Revolving Credit Advance or a Competitive Bid Advance.

"Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director or officer of such Person. For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of
Voting Stock, by contract or otherwise.

"Agent’s Account” means the account of the Agent maintained by the Agent at
Citibank at its office at 388 Greenwich Street, New York, New York 10013, Account
No. 36852248, Attention: Bank Loan Syndications.

"Applicable Lending Office” means, with respect to each Lender, such Lender’s
Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance and, in the case of a Competitive
Bid Advance, the office of such Lender notified by such Lender to the Agent as its
Applicable Lending Office with respect to such Competitive Bid Advance.

"Applicable Margin” means , as of any date (a) for Base Rate Advances, 0% per
annum and (b) for Eurodollar Rate Advances, a percentage per annum determined by reference
to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating	 	Applicable Margin for
	S&P/Moody's/Fitch	 	Eurodollar Rate Advances
	Level 1
	 	 	 	 
	 
	 	 	 	 
	A/A2/A or above
	 	 	0.140	%
	 
	 	 	 	 
	Level 2
	 	 	 	 
	 
	 	 	 	 
	A-/A3/A-
	 	 	0.180	%
	 
	 	 	 	 
	Level 3
	 	 	 	 
	 
	 	 	 	 
	BBB+/Baa1/BB+
	 	 	0.270	%
	 
	 	 	 	 
	Level 4
	 	 	 	 
	 
	 	 	 	 
	BBB/Baa2/BBB
	 	 	0.350	%
	 
	 	 	 	 
	Level 5
	 	 	 	 
	 
	 	 	 	 
	BBB-/Baa3/BBB-
	 	 	0.475	%
	 
	 	 	 	 
	Level 6
	 	 	 	 
	 
	 	 	 	 
	BB+/Ba1/BB+
	 	 	0.700	%
	 
	 	 	 	 
	Level 7
	 	 	 	 
	 
	 	 	 	 
	Lower than Level 6
	 	 	0.800	%
	 
	 	 	 	 

"Applicable Percentage” means, as of any date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating
	 	Applicable

	S&P/Moody’s/Fitch
	 	Percentage

	 
	 	 	 	 
	Level 1
	 	 	 	 
	 
	 	 	 	 
	A/A2/A or above
	 	 	0.060	%
	 
	 	 	 	 
	Level 2
	 	 	 	 
	 
	 	 	 	 
	A-/A3/A-
	 	 	0.070	%
	 
	 	 	 	 
	Level 3
	 	 	 	 
	 
	 	 	 	 
	BBB+/Baa1/BB+
	 	 	0.080	%
	 
	 	 	 	 
	Level 4
	 	 	 	 
	 
	 	 	 	 
	BBB/Baa2/BBB
	 	 	0.100	%
	 
	 	 	 	 
	Level 5
	 	 	 	 
	 
	 	 	 	 
	BBB-/Baa3/BBB-
	 	 	0.125	%
	 
	 	 	 	 
	Level 6
	 	 	 	 
	 
	 	 	 	 
	BB+/Ba1/BB+
	 	 	0.175	%
	 
	 	 	 	 
	Level 7
	 	 	 	 
	 
	 	 	 	 
	Lower than Level 6
	 	 	0.200	%
	 
	 	 	 	 

"Applicable Utilization Fee” means, as of any date that the aggregate Advances
exceed 50% of the aggregate Commitments, a percentage per annum determined by reference to
the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating
	 	Applicable

	S&P/Moody’s/Fitch
	 	Utilization Fee

	 
	 	 	 	 
	Level 1
	 	 	 	 
	 
	 	 	 	 
	A/A2/A or above
	 	 	0.050	%
	 
	 	 	 	 
	Level 2
	 	 	 	 
	 
	 	 	 	 
	A-/A3/A-
	 	 	0.050	%
	 
	 	 	 	 
	Level 3
	 	 	 	 
	 
	 	 	 	 
	BBB+/Baa1/BB+
	 	 	0.050	%
	 
	 	 	 	 
	Level 4
	 	 	 	 
	 
	 	 	 	 
	BBB/Baa2/BBB
	 	 	0.050	%
	 
	 	 	 	 
	Level 5
	 	 	 	 
	 
	 	 	 	 
	BBB-/Baa3/BBB-
	 	 	0.050	%
	 
	 	 	 	 
	Level 6
	 	 	 	 
	 
	 	 	 	 
	BB+/Ba1/BB+
	 	 	0.125	%
	 
	 	 	 	 
	Level 7
	 	 	 	 
	 
	 	 	 	 
	Lower than Level 6
	 	 	0.250	%
	 
	 	 	 	 

"Assignment and Acceptance” means an assignment and acceptance entered into by
a Lender and an Eligible Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto.

"Assuming Lender” has the meaning specified in Section 2.18(d).

"Assumption Agreement” has the meaning specified in Section 2.18(d)(ii).

"Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the higher of:

(a) the rate of interest announced publicly by Citibank in New York, New York,
from time to time, as Citibank’s base rate; and

(b) 1/2 of one percent per annum above the Federal Funds Rate.

"Base Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.07(a)(i).

"Borrower Information” has the meaning specified in Section 8.08.

"Borrowing” means a Revolving Credit Borrowing or a Competitive Bid Borrowing.

"Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day relates to
any Eurodollar Rate Advances or LIBO Rate Advances, on which dealings are carried on in the
London interbank market.

"Commitment” means as to any Lender (a) the amount set forth opposite such
Lender’s name on the signature pages hereof, (b) if such Lender has become a Lender
hereunder pursuant to an Assumption Agreement, the amount set forth in such Assumption
Agreement or (c) if such Lender has entered into an Assignment and Acceptance, the amount
set forth for such Lender in the Register maintained by the Agent pursuant to
Section 8.07(d), as such amount may be reduced pursuant to Section 2.05 or increased
pursuant to Section 2.18.

"Commitment Date” has the meaning specified in Section 2.18(b).

"Commitment Increase” has the meaning specified in Section 2.18(a).

"Competitive Bid Advance” means an advance by a Lender to the Borrower as part
of a Competitive Bid Borrowing resulting from the competitive bidding procedure described in
Section 2.03 and refers to a Fixed Rate Advance or a LIBO Rate Advance.

"Competitive Bid Borrowing” means a borrowing consisting of simultaneous
Competitive Bid Advances from each of the Lenders whose offer to make one or more
Competitive Bid Advances as part of such borrowing has been accepted under the competitive
bidding procedure described in Section 2.03.

"Competitive Bid Note” means a promissory note of the Borrower payable to the
order of any Lender, in substantially the form of Exhibit A-2 hereto, evidencing the
indebtedness of the Borrower to such Lender resulting from a Competitive Bid Advance made by
such Lender.

"Competitive Bid Reduction” has the meaning specified in Section 2.01.

"Confidential Information Memorandum” means the confidential information
memorandum dated July 17, 2006 used by the Agent in connection with the syndication of the
Commitments.

"Consolidated” refers to the consolidation of accounts in accordance with GAAP.

"Consolidated Debt” means, with respect to the Borrower, at any date, the Debt
(other than Non-recourse Debt) of the Borrower and its Consolidated Subsidiaries, determined
on a consolidated basis as of such date.

"Consolidated Subsidiary” means, with respect to the Borrower, at any date, any
Subsidiary or other entity the accounts of which would be consolidated with those of the
Borrower in its consolidated financial statements if such statements were prepared as of
such date.

"Consolidated Total Capital” means, with respect to the Borrower, at any date,
the sum of (x) Consolidated Debt plus (y) consolidated stockholders’ equity of the Borrower
and its Consolidated Subsidiaries, in each case determined at such date; provided
that any accumulated other comprehensive income and loss and, without duplication, any
non-cash effects resulting from the application of FASB Statements No. 87, 88, 106 and
132® will be excluded.

"Convert”, “Conversion” and “Converted” each refers to a
conversion of Revolving Credit Advances of one Type into Revolving Credit Advances of the
other Type pursuant to Section 2.08 or 2.09.

"Debt” of any Person means, 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 trade payables 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 obligations of such Person 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 sale of
such property), (e) all obligations of such Person as lessee under leases that have been or
should be, in accordance with GAAP, recorded as capital leases, (f) all non-contingent
obligations of such Person in respect of acceptances, letters of credit or similar
extensions of credit, (g) all Debt of others referred to in clauses (a) through (f) above or
clause (h) below (collectively, “Guaranteed Debt”) guaranteed directly or indirectly
in any manner by such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (1) to pay or purchase such Guaranteed Debt or to advance or supply
funds for the payment or purchase of such Guaranteed Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services, primarily for the purpose
of enabling the debtor to make payment of such Guaranteed Debt or to assure the holder of
such Guaranteed Debt against loss, (3) to supply funds to or in any other manner invest in
the debtor (including any agreement to pay for property or services irrespective of whether
such property is received or such services are rendered) or (4) otherwise to assure a
creditor against loss, and (h) all Debt referred to in clauses (a) through (g) above
(including Guaranteed Debt) secured by (or for which the holder of such Debt has an existing
right, contingent or otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Debt.

"Default” means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or both.

"Disclosed Litigation” has the meaning specified in Section 3.01(b).

"Domestic Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or
in the Assumption Agreement or the Assignment and Acceptance pursuant to which it became a
Lender, or such other office of such Lender as such Lender may from time to time specify to
the Borrower and the Agent.

"Effective Date” has the meaning specified in Section 3.01.

"Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by the Agent and, unless an Event of Default has occurred
and is continuing at the time any assignment is effected in accordance with Section 8.07,
the Borrower, each such approval not to be unreasonably withheld or delayed;
provided, however, that neither the Borrower nor an Affiliate of the
Borrower shall qualify as an Eligible Assignee.

"Environmental Action” means any action, suit, demand, demand letter, claim,
notice of non-compliance or violation, notice of liability, consent order or consent
agreement relating in any way to any Environmental Law, Environmental Permit or arising from
alleged injury or threat of injury to health, safety or the environment by any governmental
or regulatory authority for enforcement, cleanup, removal, response, remedial or other
actions or damages or by any governmental or regulatory authority or any third party for
damages, contribution, indemnification, cost recovery, compensation or injunctive relief.

"Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment or decree relating to pollution or
protection of the environment, health, safety or natural resources, including, without
limitation, those relating to the use, handling, transportation, treatment, storage,
disposal, release or discharge of Hazardous Materials.

"Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law.

"ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

"ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the Borrower’s controlled group, or under common control with the Borrower, within
the meaning of Section 414 of the Internal Revenue Code.

"ERISA Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice
requirement with respect to such event has been waived by the PBGC, or (ii) the requirements
of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such
Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within
the following 30 days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate
such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to
a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations
at a facility of the Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA Affiliate from a
Multiple Employer Plan during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f)  the conditions for the imposition of a lien
under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption
of an amendment to a Plan requiring the provision of security to such Plan pursuant to
Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan
pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in
Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of
a trustee to administer, a Plan.

"Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time
to time.

"Eurodollar Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assumption Agreement or the Assignment and Acceptance pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending Office), or such
other office of such Lender as such Lender may from time to time specify to the Borrower and
the Agent.

"Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate
Advance comprising part of the same Revolving Credit Borrowing, an interest rate per annum
equal to the rate per annum obtained by dividing (a) the rate per annum (rounded upward to
the nearest whole multiple of 1/16 of 1% per annum) appearing on Moneyline Telerate Markets
Page 3750 (or any successor page) as the London interbank offered rate for deposits in U.S.
dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period or, if for any reason
such rate is not available, the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate per annum at which
deposits in U.S. dollars are offered by the principal office of each of the Reference Banks
in London, England to prime banks in the London interbank market at 11:00 A.M. (London time)
two Business Days before the first day of such Interest Period in an amount substantially
equal to such Reference Bank’s Eurodollar Rate Advance comprising part of such Revolving
Credit Borrowing to be outstanding during such Interest Period and for a period equal to
such Interest Period by (b) a percentage equal to 100% minus the Eurodollar Rate Reserve
Percentage for such Interest Period. If the Moneyline Telerate Markets Page 3750 (or any
successor page) is unavailable, the Eurodollar Rate for any Interest Period for each
Eurodollar Rate Advance comprising part of the same Revolving Credit Borrowing shall be
determined by the Agent on the basis of applicable rates furnished to and received by the
Agent from the Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.08.

"Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest
as provided in Section 2.07(a)(ii).

"Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Rate Advances or LIBO Rate Advances comprising part of the same Borrowing means the reserve
percentage applicable two Business Days before the first day of such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal Reserve System
(or any successor) for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (or with respect to any other category
of liabilities that includes deposits by reference to which the interest rate on Eurodollar
Rate Advances or LIBO Rate Advances is determined) having a term equal to such Interest
Period.

"Events of Default” has the meaning specified in Section 6.01.

"Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to 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 for such day (or, if such day is not a Business Day, for
the next preceding 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
such day on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

"Fitch” means Fitch, Inc.

"Fixed Rate Advances” has the meaning specified in Section 2.03(a)(i).

"Foreign Lender” has the meaning specified in Section 2.14(e).

"GAAP” means generally accepted accounting principles in the United States as
in effect from time to time, applied on a basis consistent (except for changes concurred in
by the Borrower’s independent public accountants) with the most recent audited consolidated
financial statements of the Borrower and its Consolidated Subsidiaries delivered to the
Lenders.

"Hazardous Materials” means (a) petroleum and petroleum products, byproducts or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated
biphenyls and radon gas and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.

"Hedge Agreements” means interest rate swap, cap or collar agreements, interest
rate future or option contracts, currency swap agreements, currency future or option
contracts, commodity swap agreements or option agreements, commodity future agreements,
equity or equity index swap agreements, foreign exchange transaction agreements, floor
transaction agreements, cap transaction agreements, collar transaction agreements and other
similar agreements or any combination of the foregoing agreements.

"Increase Date” has the meaning specified in Section 2.18(a).

"Increasing Lender” has the meaning specified in Section 2.18(b).

"Interest Period” means, for each Eurodollar Rate Advance comprising part of
the same Revolving Credit Borrowing and each LIBO Rate Advance comprising part of the same
Competitive Bid Borrowing, the period commencing on the date of such Eurodollar Rate Advance
or LIBO Rate Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance and ending on the last day of the period selected by the Borrower
pursuant to the provisions below and, thereafter, with respect to Eurodollar Rate Advances,
each subsequent period commencing on the last day of the immediately preceding Interest
Period and ending on the last day of the period selected by the Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be two weeks or one, two,
three or six months, as the Borrower may, upon notice received by the Agent not later than
1:00 P.M. (New York City time) on the third Business Day prior to the first day of such
Interest Period, select; provided, however, that:

(a) the Borrower may not select any Interest Period that ends after the
Termination Date;

(b) Interest Periods commencing on the same date for Eurodollar Rate Advances
comprising part of the same Revolving Credit Borrowing or for LIBO Rate Advances
comprising part of the same Competitive Bid Borrowing shall be of the same duration;

(c) whenever the last day of any Interest Period would otherwise occur on a day
other than a Business Day, the last day of such Interest Period shall be extended to
occur on the next succeeding Business Day, provided, however, that,
if such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day; and

(d) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar
month that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.

"Internal Revenue Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

"Lenders” means the Initial Lenders, each Assuming Lender that shall become a
party hereto pursuant to Section 2.18 and each Person that shall become a party hereto
pursuant to Section 8.07.

"LIBO Rate” means, for any Interest Period for all LIBO Rate Advances
comprising part of the same Competitive Bid Borrowing, an interest rate per annum equal to
the rate per annum obtained by dividing (a)  the rate per annum (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum) appearing on Moneyline Telerate Markets Page
3750 (or any successor page) as the London interbank offered rate for deposits in U.S.
dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period or, if for any reason
such rate is not available, the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate per annum at which
deposits in U.S. dollars offered by the principal office of each of the Reference Banks in
London, England to prime banks in the London interbank market at 11:00 A.M. (London time)
two Business Days before the first day of such Interest Period in an amount substantially
equal to the amount that would be the Reference Banks’ respective ratable shares of such
Borrowing if such Borrowing were to be a Revolving Credit Borrowing to be outstanding during
such Interest Period and for a period equal to such Interest Period by (b) a percentage
equal to 100% minus the Eurodollar Rate Reserve Percentage for such Interest Period. If the
Moneyline Telerate Markets Page 3750 (or any successor page) is unavailable, the LIBO Rate
for any Interest Period for each LIBO Rate Advance comprising part of the same Competitive
Bid Borrowing shall be determined by the Agent on the basis of applicable rates furnished to
and received by the Agent from the Reference Banks two Business Days before the first day of
such Interest Period, subject, however, to the provisions of Section 2.08.

"LIBO Rate Advances” means a Competitive Bid Advance bearing interest based on
the LIBO Rate.

"Lien” means any lien, security interest or other charge or encumbrance of any
kind, or any other type of preferential arrangement, including, without limitation, the lien
or retained security title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.

"Material Adverse Change” means any material adverse change in the business,
financial condition or operations of the Borrower and its Subsidiaries taken as a whole.

"Material Adverse Effect” means a material adverse effect on (a) the business,
financial condition or operations of the Borrower and its Subsidiaries taken as a whole,
(b) the rights and remedies of the Agent or any Lender under this Agreement or any Note or
(c) the ability of the Borrower to perform its obligations under this Agreement or any Note.

"Material Subsidiary” means, with respect to the Borrower, at any time, any
Subsidiary of the Borrower that is a “significant subsidiary” (as such term is defined in
Regulation S-X, but treating all references therein to the “registrant” as references to the
Borrower).

"Moody’s” means Moody’s Investors Service, Inc.

"Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding five plan
years made or accrued an obligation to make contributions.

"Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any
ERISA Affiliate and at least one Person other than the Borrower and the ERISA Affiliates or
(b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.

"Non-recourse Debt” of any Person means Debt secured by a Lien on one or more
assets or rights to receive revenue of such Person where the rights and remedies of the
holder of such Debt in respect of such Debt are non-recourse to such Person and do not
extend to any other assets or rights to receive revenue of such Person and, if such Person
is organized under the laws of or doing business in the United States or any political
subdivision thereof or therein, as to which such holder has effectively waived (or
subordinated in favor of the Lenders) such holder’s right to make the election provided
under 11 U.S.C. §1111(b)(1)(A).

"Note” means a Revolving Credit Note or a Competitive Bid Note.

"Notice of Competitive Bid Borrowing” has the meaning specified in
Section 2.03(a).

"Notice of Revolving Credit Borrowing” has the meaning specified in
Section 2.02(a).

"Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56,
signed into law October 26, 2001.

"PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

"Permitted Liens” means such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens
for taxes, assessments and governmental charges or levies to the extent not required to be
paid under Section 5.01(b) hereof; (b) Liens imposed by law, such as materialmen’s,
mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in
the ordinary course of business securing obligations that are not overdue for a period of
more than 60 days; (c) pledges or deposits to secure obligations under workers’ compensation
laws or similar legislation or to secure public or statutory obligations or contracts (other
than for the repayment of borrowed money); and (d) easements, rights of way and other
encumbrances on title to real property that do not render title to the property encumbered
thereby unmarketable or materially adversely affect the use of such property for its present
purposes.

"Person” means an individual, partnership, corporation (including a business
trust), joint stock company, trust, unincorporated association, joint venture, limited
liability company or other entity, or a government or any political subdivision or agency
thereof.

"PG Energy” means all of the natural gas utility assets of PG Energy, a
division of Southern Union Company, and the capital stock of PG Energy Services, Inc.

"Plan” means a Single Employer Plan or a Multiple Employer Plan.

"Public Debt Rating” means, as of any date, the rating that has been most
recently announced by either S&P, Moody’s or Fitch, as the case may be, for any class of
non-credit enhanced long-term senior unsecured debt issued by the Borrower or, if any such
rating agency shall have issued more than one such rating, the lowest such rating issued by
such rating agency. For purposes of the foregoing, (a) if only one of S&P and Moody’s shall
have in effect a Public Debt Rating, the Applicable Margin, the Applicable Percentage and
the Applicable Utilization Fee shall be determined by reference to the available rating;
(b) if none of S&P, Moody’s or Fitch shall have in effect a Public Debt Rating, or if only
Fitch shall have in effect a Public Debt Rating, the Applicable Margin, the Applicable
Percentage and the Applicable Utilization Fee will be set in accordance with Level 7 under
the definition of “Applicable Margin”, “Applicable Percentage” or
“Applicable Utilization Fee”, as the case may be; (c) if the ratings established by
S&P, Moody’s and Fitch shall fall within different levels, the Applicable Margin, the
Applicable Percentage and the Applicable Utilization Fee shall be based upon (i) the rating
level of two such agencies, if two such agencies have ratings in the same level or (ii) the
intermediate rating if the rating levels of the three agencies fall within three different
levels, (d) if only two of S&P, Moody’s and Fitch shall have in effect a Public Debt Rating,
and such ratings shall fall within different levels, the Applicable Margin, the Applicable
Percentage and the Applicable Utilization Fee shall be based upon the higher rating unless
such ratings differ by two or more levels, in which case the applicable level will be deemed
to be one level above the lower of such levels; (e) if any rating established by S&P,
Moody’s or Fitch shall be changed, such change shall be effective as of the date on which
such change is first announced publicly by the rating agency making such change; and (f) if
S&P, Moody’s or Fitch shall change the basis on which ratings are established, each
reference to the Public Debt Rating announced by S&P, Moody’s or Fitch, as the case may be,
shall refer to the then equivalent rating by S&P, Moody’s or Fitch, as the case may be.

"Reference Banks” means Citibank, Wachovia Bank, National Association, Credit
Suisse and Citizens Bank of Pennsylvania.

"Register” has the meaning specified in Section 8.07(d).

"Regulation S-X” means Regulation S-X of the U.S. Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934 (as amended from time to time).

"Required Lenders” means at any time Lenders owed at least a majority in
interest of the then aggregate unpaid principal amount of the Revolving Credit Advances
owing to Lenders, or, if no such principal amount is then outstanding, Lenders having at
least a majority in interest of the Commitments.

"Revolving Credit Advance” means an advance by a Lender to the Borrower as part
of a Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate
Advance (each of which shall be a “Type” of Revolving Credit Advance).

"Revolving Credit Borrowing” means a borrowing consisting of simultaneous
Revolving Credit Advances of the same Type made by each of the Lenders pursuant to
Section 2.01.

"Revolving Credit Note” means a promissory note of the Borrower payable to the
order of any Lender, delivered pursuant to a request made under Section 2.16 in
substantially the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness of the
Borrower to such Lender resulting from the Revolving Credit Advances made by such Lender.

"S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.

"SEC Reports” means periodic reports filed from time to time with the U.S.
Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 (as
amended from time to time).

"Securities Certificate” has the meaning specified in Section 2.19.

"Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any
ERISA Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so
maintained and in respect of which the Borrower or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be terminated.

"Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time capital stock of
any other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly or indirectly owned or controlled by such Person, by such
Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.

"Termination Date” means the earlier of (a) August 10, 2007, subject to the
extension thereof pursuant to Section 2.19, and (b) the date of termination in whole of the
Commitments pursuant to Section 2.05 or 6.01.

"Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the happening
of such a contingency.

SECTION 1.02. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”.

SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with GAAP, provided, that if the Borrower notifies the
Agent that the Borrower wishes to amend any provision hereof to eliminate the effect of any change
in GAAP after the date hereof (or if the Agent notifies the Borrower that the Required Lenders wish
to amend any provision hereof for such purpose), then such provision shall be applied on the basis
of GAAP in effect immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such provision is amended in a manner satisfactory to the Borrower and
the Required Lenders.

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

SECTION 2.01. The Revolving Credit Advances. Each Lender severally agrees, on the
terms and conditions hereinafter set forth, to make Revolving Credit Advances to the Borrower from
time to time on any Business Day during the period from the Effective Date until the Termination
Date in an aggregate amount not to exceed at any time outstanding such Lender’s Commitment
provided that the aggregate amount of the Commitments of the Lenders shall be deemed used
from time to time to the extent of the aggregate amount of the Competitive Bid Advances then
outstanding and such deemed use of the aggregate amount of the Commitments shall be allocated among
the Lenders ratably according to their respective Commitments (such deemed use of the aggregate
amount of the Commitments being a “Competitive Bid Reduction”). Each Revolving Credit
Borrowing comprised of Eurodollar Rate Advances shall be in an aggregate amount of $5,000,000 and
each Revolving Credit Borrowing comprised of Base Rate Advances shall be in an aggregate amount of
$1,000,000 or, in each case, an integral multiple of $1,000,000 in excess thereof and shall consist
of Revolving Credit Advances of the same Type made on the same day by the Lenders ratably according
to their respective Commitments. Within the limits of each Lender’s Commitment, the Borrower may
borrow under this Section 2.01, prepay pursuant to Section 2.10 and reborrow under this
Section 2.01.

SECTION 2.02. Making the Revolving Credit Advances. (a) Each Revolving Credit
Borrowing shall be made on notice, given not later than (x) 1:00 P.M. (New York City time) on the
third Business Day prior to the date of the proposed Revolving Credit Borrowing in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances or (y) 12:00 Noon (New York City
time) on the date of the proposed Revolving Credit Borrowing in the case of a Revolving Credit
Borrowing consisting of Base Rate Advances, by the Borrower to the Agent, which shall give to each
Lender prompt notice thereof by telecopier. Each such notice of a Revolving Credit Borrowing (a
"Notice of Revolving Credit Borrowing”) shall be by telephone, confirmed immediately in
writing, or telecopier in substantially the form of Exhibit B-1 hereto, specifying therein the
requested (i) date of such Revolving Credit Borrowing, (ii) Type of Advances comprising such
Revolving Credit Borrowing, (iii) aggregate amount of such Revolving Credit Borrowing, and (iv) in
the case of a Revolving Credit Borrowing consisting of Eurodollar Rate Advances, initial Interest
Period for each such Revolving Credit Advance. Each Lender shall, before 1:00 P.M. (New York City
time) on the date of such Revolving Credit Borrowing make available for the account of its
Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such Lender’s
ratable portion of such Revolving Credit Borrowing. After the Agent’s receipt of such funds and
upon fulfillment of the applicable conditions set forth in Article III, the Agent will make such
funds available to the Borrower by transferring such funds to an account designated by the
Borrower.

(b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not
select Eurodollar Rate Advances for any Revolving Credit Borrowing if the aggregate amount of such
Revolving Credit Borrowing is less than $5,000,000 or if the obligation of the Lenders to make
Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the
Eurodollar Rate Advances may not be outstanding as part of more than six separate Revolving Credit
Borrowings.

(c) Each Notice of Revolving Credit Borrowing shall be irrevocable and binding on the
Borrower. In the case of any Revolving Credit Borrowing that the related Notice of Revolving
Credit Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice of Revolving Credit Borrowing for
such Revolving Credit Borrowing the applicable conditions set forth in Article III, including,
without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to
fund the Revolving Credit Advance to be made by such Lender as part of such Revolving Credit
Borrowing when such Revolving Credit Advance, as a result of such failure, is not made on such
date.

(d) Unless the Agent shall have received notice from a Lender prior to the time of any
Revolving Credit Borrowing that such Lender will not make available to the Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Agent may assume that such Lender has made
such portion available to the Agent on the date of such Revolving Credit Borrowing in accordance
with subsection (a) of this Section 2.02 and the Agent may, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to the extent that such
Lender shall not have so made such ratable portion available to the Agent, such Lender and the
Borrower severally agree to repay to the Agent forthwith such corresponding amount together with
interest thereon, for each day from the date such amount is made available to the Borrower until
the date such amount is repaid to the Agent, at (i) in the case of the Borrower, the interest rate
applicable at the time to Revolving Credit Advances comprising such Revolving Credit Borrowing and
(ii) in the case of such Lender, the Federal Funds Rate. If the Borrower and such Lender shall pay
such interest to the Agent for the same or an overlapping period, the Agent shall promptly remit to
the Borrower the amount of such interest paid by the Borrower to the Agent for such period. If
such Lender shall repay to the Agent such corresponding amount, such amount so repaid shall
constitute such Lender’s Revolving Credit Advance as part of such Revolving Credit Borrowing for
purposes of this Agreement. Any payment by the Borrower shall be without prejudice to any claim
the Borrower may have against the Lender that shall have failed to make such payment to the Agent.

(e) The failure of any Lender to make the Revolving Credit Advance to be made by it as part of
any Revolving Credit Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Revolving Credit Advance on the date of such Revolving Credit Borrowing, but
no Lender shall be responsible for the failure of any other Lender to make the Revolving Credit
Advance to be made by such other Lender on the date of any Revolving Credit Borrowing.

SECTION 2.03. The Competitive Bid Advances. (a) Each Lender severally agrees that
the Borrower may make Competitive Bid Borrowings under this Section 2.03 from time to time on any
Business Day during the period from the date hereof until the date occurring 30 days prior to the
Termination Date in the manner set forth below; provided that, following the making of each
Competitive Bid Borrowing, the aggregate amount of the Advances then outstanding shall not exceed
the aggregate amount of the Commitments of the Lenders (computed without regard to any Competitive
Bid Reduction).

(i) The Borrower may request a Competitive Bid Borrowing under this Section 2.03 by
delivering to the Agent, by telecopier, a notice of a Competitive Bid Borrowing (a
“Notice of Competitive Bid Borrowing”), in substantially the form of Exhibit B-2
hereto, specifying therein the requested (v) date of such proposed Competitive Bid
Borrowing, (w) aggregate amount of such proposed Competitive Bid Borrowing, (x) in the case
of a Competitive Bid Borrowing consisting of LIBO Rate Advances, Interest Period, or in the
case of a Competitive Bid Borrowing consisting of Fixed Rate Advances, maturity date for
repayment of each Fixed Rate Advance to be made as part of such Competitive Bid Borrowing
(which maturity date may not be earlier than the date occurring 7 days after the date of
such Competitive Bid Borrowing or later than the Termination Date), (y) interest payment
date or dates relating thereto, and (z) other terms (if any) to be applicable to such
Competitive Bid Borrowing, not later than 10:00 A.M. (New York City time) (A) at least one
Business Day prior to the date of the proposed Competitive Bid Borrowing, if the Borrower
shall specify in the Notice of Competitive Bid Borrowing that the rates of interest to be
offered by the Lenders shall be fixed rates per annum (the Advances comprising any such
Competitive Bid Borrowing being referred to herein as “Fixed Rate Advances”) and (B)
at least four Business Days prior to the date of the proposed Competitive Bid Borrowing, if
the Borrower shall instead specify in the Notice of Competitive Bid Borrowing that the
Advances comprising such Competitive Bid Borrowing shall be LIBO Rate Advances. The Agent
shall in turn promptly notify each Lender of each request for a Competitive Bid Borrowing
received by it from the Borrower by sending such Lender a copy of the related Notice of
Competitive Bid Borrowing.

(ii) Each Lender may, if, in its sole discretion, it elects to do so, irrevocably offer
to make one or more Competitive Bid Advances to the Borrower as part of such proposed
Competitive Bid Borrowing at a rate or rates of interest specified by such Lender in its
sole discretion, by notifying the Agent (which shall give prompt notice thereof to the
Borrower), (A) before 9:30 A.M. (New York City time) on the date of such proposed
Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of Fixed
Rate Advances and (B) before 10:00 A.M. (New York City time) three Business Days before the
date of such proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of LIBO Rate Advances of the minimum amount and maximum amount of each
Competitive Bid Advance which such Lender would be willing to make as part of such proposed
Competitive Bid Borrowing (which amounts may, subject to the proviso to the first sentence
of this Section 2.03(a), exceed such Lender’s Commitment, if any), the rate or rates of
interest (or, in the case of a LIBO Rate Advance, the margin over the LIBO Rate) therefor
and such Lender’s Applicable Lending Office with respect to such Competitive Bid Advance;
provided that if the Agent in its capacity as a Lender shall, in its sole
discretion, elect to make any such offer, it shall notify the Borrower of such offer at
least 30 minutes before the time and on the date on which notice of such election is to be
given to the Agent, by the other Lenders. If any Lender shall elect not to make such an
offer, such Lender shall so notify the Agent before 10:00 A.M. (New York City time) on the
date on which notice of such election is to be given to the Agent by the other Lenders, and
such Lender shall not be obligated to, and shall not, make any Competitive Bid Advance as
part of such Competitive Bid Borrowing; provided that the failure by any Lender to
give such notice shall not cause such Lender to be obligated to make any Competitive Bid
Advance as part of such proposed Competitive Bid Borrowing.

(iii) The Borrower shall, in turn, (A) before 10:30 A.M. (New York City time) on the
date of such proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of Fixed Rate Advances and (B) before 11:00 A.M. (New York City time) three
Business Days before the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances, either:

(x) cancel such Competitive Bid Borrowing by giving the Agent notice to that
effect, or

(y) accept one or more of the offers made by any Lender or Lenders pursuant to
paragraph (ii) above, in its sole discretion, by giving notice to the Agent of the
amount of each Competitive Bid Advance (which amount shall be equal to or greater
than the minimum amount, and equal to or less than the maximum amount, notified to
the Borrower by the Agent on behalf of such Lender for such Competitive Bid Advance
pursuant to paragraph (ii) above) to be made by each Lender as part of such
Competitive Bid Borrowing, and reject any remaining offers made by Lenders pursuant
to paragraph (ii) above by giving the Agent notice to that effect. The Borrower
shall accept the offers made by any Lender or Lenders to make Competitive Bid
Advances in order of the lowest to the highest rates of interest offered by such
Lenders. If two or more Lenders have offered the same interest rate, the amount to
be borrowed at such interest rate will be allocated among such Lenders in proportion
to the amount that each such Lender offered at such interest rate.

(iv) If the Borrower notifies the Agent that such Competitive Bid Borrowing is
cancelled pursuant to paragraph (iii)(x) above, the Agent shall give prompt notice thereof
to the Lenders and such Competitive Bid Borrowing shall not be made.

(v) If the Borrower accepts one or more of the offers made by any Lender or Lenders
pursuant to paragraph (iii)(y) above, the Agent shall in turn promptly notify (A) each
Lender that has made an offer as described in paragraph (ii) above, of the date and
aggregate amount of such Competitive Bid Borrowing and whether or not any offer or offers
made by such Lender pursuant to paragraph (ii) above have been accepted by the Borrower,
(B) each Lender that is to make a Competitive Bid Advance as part of such Competitive Bid
Borrowing, of the amount of each Competitive Bid Advance to be made by such Lender as part
of such Competitive Bid Borrowing, and (C) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, upon receipt, that the Agent has received
forms of documents appearing to fulfill the applicable conditions set forth in Article III.
Each Lender that is to make a Competitive Bid Advance as part of such Competitive Bid
Borrowing shall, before 12:00 Noon (New York City time) on the date of such Competitive Bid
Borrowing specified in the notice received from the Agent pursuant to clause (A) of the
preceding sentence or any later time when such Lender shall have received notice from the
Agent pursuant to clause (C) of the preceding sentence, make available for the account of
its Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such
Lender’s portion of such Competitive Bid Borrowing. Upon fulfillment of the applicable
conditions set forth in Article III and after receipt by the Agent of such funds, the Agent
will make such funds available to the Borrower by transferring such funds to an account
designated by the Borrower. Promptly after each Competitive Bid Borrowing the Agent will
notify each Lender of the amount of the Competitive Bid Borrowing, the consequent
Competitive Bid Reduction and the dates upon which such Competitive Bid Reduction commenced
and will terminate.

(vi) If the Borrower notifies the Agent that it accepts one or more of the offers made
by any Lender or Lenders pursuant to paragraph (iii)(y) above, such notice of acceptance
shall be irrevocable and binding on the Borrower. The Borrower shall indemnify each Lender
against any loss, cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in the related Notice of Competitive Bid Borrowing
for such Competitive Bid Borrowing the applicable conditions set forth in Article III,
including, without limitation, any loss (excluding loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the Competitive Bid Advance to be made by such Lender as
part of such Competitive Bid Borrowing when such Competitive Bid Advance, as a result of
such failure, is not made on such date.

(b) Each Competitive Bid Borrowing comprised of LIBO Rate Advances shall be in an aggregate
amount of $5,000,000, and each Competitive Bid Borrowing comprised to Fixed Rate Advances shall be
in an aggregate amount of $1,000,000 or, in each case, an integral multiple of $1,000,000 in excess
thereof and, following the making of each Competitive Bid Borrowing, the Borrower shall be in
compliance with the limitation set forth in the proviso to the first sentence of subsection (a)
above.

(c) Within the limits and on the conditions set forth in this Section 2.03, the Borrower may
from time to time borrow under this Section 2.03, repay or prepay pursuant to subsection (d) below,
and reborrow under this Section 2.03, provided that a Competitive Bid Borrowing shall not
be made within three Business Days of the date of any other Competitive Bid Borrowing.

(d) The Borrower shall repay to the Agent for the account of each Lender that has made a
Competitive Bid Advance, on the maturity date of each Competitive Bid Advance (such maturity date
being that specified by the Borrower for repayment of such Competitive Bid Advance in the related
Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i) above and provided in
the Competitive Bid Note evidencing such Competitive Bid Advance), the then unpaid principal amount
of such Competitive Bid Advance. The Borrower shall have no right to prepay any principal amount
of any Competitive Bid Advance unless, and then only on the terms, specified by the Borrower for
such Competitive Bid Advance in the related Notice of Competitive Bid Borrowing delivered pursuant
to subsection (a)(i) above and set forth in the Competitive Bid Note evidencing such Competitive
Bid Advance.

(e) The Borrower shall pay interest on the unpaid principal amount of each Competitive Bid
Advance from the date of such Competitive Bid Advance to the date the principal amount of such
Competitive Bid Advance is repaid in full, at the rate of interest for such Competitive Bid Advance
specified by the Lender making such Competitive Bid Advance in its notice with respect thereto
delivered pursuant to subsection (a)(ii) above, payable on the interest payment date or dates
specified by the Borrower for such Competitive Bid Advance in the related Notice of Competitive Bid
Borrowing delivered pursuant to subsection (a)(i) above, as provided in the Competitive Bid Note
evidencing such Competitive Bid Advance. Upon the occurrence and during the continuance of an
Event of Default, the Borrower shall pay interest on the amount of unpaid principal of and interest
on each Competitive Bid Advance owing to a Lender, payable in arrears on the date or dates interest
is payable thereon, at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on such Competitive Bid Advance under the terms of the Competitive Bid Note
evidencing such Competitive Bid Advance unless otherwise agreed in such Competitive Bid Note.

(f) The indebtedness of the Borrower resulting from each Competitive Bid Advance made to the
Borrower as part of a Competitive Bid Borrowing shall be evidenced by a separate Competitive Bid
Note of the Borrower payable to the order of the Lender making such Competitive Bid Advance.

SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of such Lender’s
Commitment in effect from time to time from the Effective Date in the case of each Initial Lender
and from the effective date specified in the Assumption Agreement or in the Assignment and
Acceptance pursuant to which it became a Lender in the case of each other Lender until the
Termination Date at a rate per annum equal to the Applicable Percentage in effect from time to
time, payable in arrears quarterly on the last day of each March, June, September and December,
commencing September 30, 2006, and on the Termination Date.

(b) Agent’s Fees. The Borrower shall pay to the Agent for its own account such fees
as may from time to time be agreed between the Borrower and the Agent.

SECTION 2.05. Optional Termination or Reduction of the Commitments. The Borrower
shall have the right, upon at least three Business Days’ notice to the Agent, to terminate in whole
or permanently reduce ratably in part the unused portions of the respective Commitments of the
Lenders, provided that each partial reduction shall be in the aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and provided 
further that the aggregate amount of the Commitments of the Lenders shall not be reduced to
an amount that is less than the aggregate principal amount of the Competitive Bid Advances then
outstanding.

SECTION 2.06. Repayment of Revolving Credit Advances. The Borrower shall repay to
the Agent for the ratable account of the Lenders on the Termination Date the aggregate principal
amount of the Revolving Credit Advances then outstanding.

SECTION 2.07. Interest on Revolving Credit Advances. (a) Scheduled
Interest. The Borrower shall pay interest on the unpaid principal amount of each Revolving
Credit Advance owing to each Lender from the date of such Revolving Credit Advance until such
principal amount shall be paid in full, at the following rates per annum:

(i) Base Rate Advances. During such periods as such Revolving Credit Advance
is a Base Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate
in effect from time to time plus (y) the Applicable Margin in effect from time to
time plus (z) the Applicable Utilization Fee in effect from time to time, payable in
arrears quarterly on the last day of each March, June, September and December during such
periods and on the date such Base Rate Advance shall be Converted or paid in full.

(ii) Eurodollar Rate Advances. During such periods as such Revolving Credit
Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each
Interest Period for such Revolving Credit Advance to the sum of (x) the Eurodollar Rate for
such Interest Period for such Revolving Credit Advance plus (y) the Applicable
Margin in effect from time to time plus (z) the Applicable Utilization Fee in effect
from time to time, payable in arrears on the last day of such Interest Period and, if such
Interest Period has a duration of more than three months, on each day that occurs during
such Interest Period every three months from the first day of such Interest Period and on
the date such Eurodollar Rate Advance shall be Converted or paid in full.

(b) Default Interest. Upon the occurrence and during the continuance of an Event of
Default, the Agent may, and upon the request of the Required Lenders shall, require the Borrower to
pay interest (“Default Interest”) on (i) the unpaid principal amount of each Revolving
Credit Advance owing to each Lender, payable in arrears on the dates referred to in clause (a)(i)
or (a)(ii) above, at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on such Revolving Credit Advance pursuant to clause (a)(i) or (a)(ii) above and
(ii) to the fullest extent permitted by law, the amount of any interest, fee or other amount
payable hereunder that is not paid when due, from the date such amount shall be due until such
amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and
on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required
to be paid on Base Rate Advances pursuant to clause (a)(i) above, provided,
however, that following acceleration of the Advances pursuant to Section 6.01, Default
Interest shall accrue and be payable hereunder whether or not previously required by the Agent.

SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank agrees to
furnish to the Agent timely information for the purpose of determining each Eurodollar Rate and
each LIBO Rate. If any one or more of the Reference Banks shall not furnish such timely
information to the Agent for the purpose of determining any such interest rate, the Agent shall
determine such interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section 2.07(a)(i) or (ii), and
the rate, if any, furnished by each Reference Bank for the purpose of determining the interest rate
under Section 2.07(a)(ii).

(b) If, with respect to any Eurodollar Rate Advances, the Required Lenders notify the Agent
that the Eurodollar Rate for any Interest Period for such Advances will not adequately reflect the
cost to such Required Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Agent shall forthwith so notify the Borrower and the
Lenders, whereupon (i) each Eurodollar Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of the
Lenders to make, or to Convert Revolving Credit Advances into, Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing
such suspension no longer exist.

(c) If the Borrower shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest
Period” in Section 1.01, the Agent will forthwith so notify the Borrower and the Lenders and such
Advances will automatically, on the last day of the then existing Interest Period therefor, Convert
into Base Rate Advances.

(d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically Convert into Base Rate Advances.

(e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended.

(f) If Moneyline Telerate Markets Page 3750 is unavailable and fewer than two Reference Banks
furnish timely information to the Agent for determining the Eurodollar Rate or LIBO Rate for any
Eurodollar Rate Advances or LIBO Rate Advances, as the case may be,

(i) the Agent shall forthwith notify the Borrower and the Lenders that the interest
rate cannot be determined for such Eurodollar Rate Advances or LIBO Rate Advances, as the
case may be,

(ii) with respect to Eurodollar Rate Advances, each such Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance
(or if such Advance is then a Base Rate Advance, will continue as a Base Rate Advance), and

(iii) the obligation of the Lenders to make Eurodollar Rate Advances or LIBO Rate
Advances or to Convert Revolving Credit Advances into Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.

SECTION 2.09. Optional Conversion of Revolving Credit Advances. The Borrower may on
any Business Day, upon notice given to the Agent not later than 1:00 P.M. (New York City time) on
the third Business Day prior to the date of the proposed Conversion and subject to the provisions
of Sections 2.08 and 2.12, Convert all Revolving Credit Advances of one Type comprising the same
Borrowing into Revolving Credit Advances of the other Type; provided, however, that
any Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last
day of an Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate Advances
into Eurodollar Rate Advances shall be in an amount not less than the minimum amount specified in
Section 2.02(b) and no Conversion of any Revolving Credit Advances shall result in more separate
Revolving Credit Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion
shall, within the restrictions specified above, specify (i) the date of such Conversion, (ii) the
Revolving Credit Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate
Advances, the duration of the initial Interest Period for each such Advance. Each notice of
Conversion shall be irrevocable and binding on the Borrower.

SECTION 2.10. Prepayments of Revolving Credit Advances. The Borrower may, upon
notice not later than 1:00 P.M. (New York City time) at least two Business Days’ prior to the date
of such prepayment, in the case of Eurodollar Rate Advances, and not later than 12:00 Noon
(New York City time) on the date of such prepayment, in the case of Base Rate Advances, to the
Agent stating the proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding principal amount of the Revolving Credit
Advances comprising part of the same Revolving Credit Borrowing in whole or ratably in part,
together with accrued interest to the date of such prepayment on the principal amount prepaid;
provided, however, that (x) each partial prepayment, in the case of a Borrowing
comprised of Eurodollar Rate Advances, shall be in an aggregate principal amount of $5,000,000 and
in the case of a Borrowing comprised of Base Rate Advances, shall be in an aggregate principal
amount of $1,000,000 or, in each case, an integral multiple of $1,000,000 in excess thereof and
(y) in the event of any such prepayment of a Eurodollar Rate Advance, the Borrower shall be
obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(c).

SECTION 2.11. Increased Costs. (a) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority (whether or not having
the force of law), there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances or LIBO Rate Advances (excluding for
purposes of this Section 2.11 any such increased costs resulting from (i) Taxes or Other Taxes (as
to which Section 2.14 shall govern) and (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or by the foreign jurisdiction or state under the laws
of which such Lender is organized or has its Applicable Lending Office or, in each case, any
political subdivision thereof), then the Borrower shall from time to time, upon demand by such
Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such Lender
additional amounts sufficient to compensate such Lender for such increased cost; provided,
however, that before making any such demand, each Lender agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to designate a
different Applicable Lending Office if the making of such a designation would avoid the need for,
or reduce the amount of, such increased cost and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender. A certificate as to the amount of such
increased cost, submitted to the Borrower and the Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error.

(b) If any Lender determines that compliance with any law or regulation or any guideline or
request from any central bank or other governmental authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such capital is increased
by or based upon the existence of such Lender’s commitment to lend hereunder and other commitments
of this type, then, upon demand by such Lender (with a copy of such demand to the Agent), the
Borrower shall pay to the Agent for the account of such Lender, from time to time as specified by
such Lender, additional amounts sufficient to compensate such Lender or such corporation in the
light of such circumstances, to the extent that such Lender reasonably determines such increase in
capital to be allocable to the existence of such Lender’s commitment to lend hereunder. A
certificate as to such amounts submitted to the Borrower and the Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

SECTION 2.12. Illegality. Notwithstanding any other provision of this Agreement, if
any Lender shall notify the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for any Lender or its Eurodollar Lending Office
to perform its obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or to
fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder, (a) each Eurodollar Rate
Advance or LIBO Rate Advance, as the case may be, will automatically, upon such demand, Convert
into a Base Rate Advance or an Advance that bears interest at the rate set forth in Section
2.07(a)(i), as the case may be, and (b) the obligation of the Lenders to make Eurodollar Rate
Advances or LIBO Rate Advances or to Convert Revolving Credit Advances into Eurodollar Rate
Advances shall be suspended until the Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist; provided, however, that
before making any such demand, each Lender agrees to use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to designate a different Eurodollar Lending
Office if the making of such a designation would allow such Lender or its Eurodollar Lending Office
to continue to perform its obligations to make Eurodollar Rate Advances or to continue to fund or
maintain Eurodollar Rate Advances and would not, in the judgment of such Lender, be otherwise
disadvantageous to such Lender.

SECTION 2.13. Payments and Computations. (a) The Borrower shall make each payment
hereunder, irrespective of any right of counterclaim or set-off, not later than 3:00 P.M.
(New York City time) on the day when due in U.S. dollars to the Agent at the Agent’s Account in
same day funds. The Agent will promptly thereafter cause to be distributed like funds relating to
the payment of principal or interest or facility fees ratably (other than amounts payable pursuant
to Section 2.03, 2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other amount payable to
any Lender to such Lender for the account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon any Assuming Lender becoming a Lender
hereunder as a result of a Commitment Increase pursuant to Section 2.18, and upon the Agent’s
receipt of such Lender’s Assumption Agreement and recording of the information contained therein in
the Register, from and after the applicable Increase Date, the Agent shall make all payments
hereunder and under any Notes issued in connection therewith in respect of the interest assumed
thereby to the Assuming Lender. Upon its acceptance of an Assignment and Acceptance and recording
of the information contained therein in the Register pursuant to Section 8.07(c), from and after
the effective date specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly between themselves.

(b) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due hereunder or under the Note held by such Lender, to charge from time to
time against any or all of the Borrower’s accounts with such Lender any amount so due.

(c) All computations of interest based on the Base Rate shall be made by the Agent on the
basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on
the Eurodollar Rate, the LIBO Rate or the Federal Funds Rate or in respect of Fixed Rate Advances
and of facility fees shall be made by the Agent on the basis of a year of 360 days, in each case
for the actual number of days (including the first day but excluding the last day) occurring in the
period for which such interest or facility fees are payable. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.

(d) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other
than a Business Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest or
facility fee, as the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurodollar Rate Advances or LIBO Rate Advances to be
made in the next following calendar month, such payment shall be made on the next preceding
Business Day.

(e) Unless the Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Lenders hereunder that the Borrower will not make such payment in full,
the Agent may assume that the Borrower has made such payment in full to the Agent on such date and
the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due
date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall
not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith
on demand such amount distributed to such Lender together with interest thereon, for each day from
the date such amount is distributed to such Lender until the date such Lender repays such amount to
the Agent, at the Federal Funds Rate.

SECTION 2.14. Taxes. (a) Any and all payments by the Borrower to or for the account
of any Lender or the Agent hereunder or under the Notes or any other documents to be delivered
hereunder shall be made, in accordance with Section 2.13 or the applicable provisions of such other
documents, free and clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, taxes imposed on its overall net
income, and franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction under
the laws of which such Lender or the Agent (as the case may be) is organized or any political
subdivision thereof and, in the case of each Lender, taxes imposed on its overall net income, and
franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction of such Lender’s
Applicable Lending Office or any political subdivision thereof, and any branch profits taxes or
similar taxes (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being hereinafter referred to as
"Taxes”). If the Borrower shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note or any other documents to be delivered hereunder to
any Lender or the Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section 2.14) such Lender or the Agent (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

(b) In addition, the Borrower shall pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from any payment made
hereunder or under the Notes or any other documents to be delivered hereunder or from the
execution, delivery or registration of, performing under, or otherwise with respect to, this
Agreement or the Notes or any other documents to be delivered hereunder (hereinafter referred to as
"Other Taxes”).

(c) The Borrower shall indemnify each Lender and the Agent for and hold it harmless against
the full amount of Taxes or Other Taxes (including, without limitation, taxes of any kind imposed
or asserted by any jurisdiction on amounts payable under this Section 2.14) imposed on or paid by
such Lender or the Agent (as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30
days from the date such Lender or the Agent (as the case may be) makes written demand therefor.

(d) Within 30 days after the date of any payment of Taxes, the Borrower shall furnish to the
Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt
evidencing such payment to the extent such a receipt is issued therefor, or other written proof of
payment thereof that is reasonably satisfactory to the Agent. In the case of any payment hereunder
or under the Notes or any other documents to be delivered hereunder by or on behalf of the Borrower
through an account or branch outside the United States or by or on behalf of the Borrower by a
payor that is not a United States person, if the Borrower determines that no Taxes are payable in
respect thereof, the Borrower shall furnish, or shall cause such payor to furnish, to and at the
request of the Agent, at such address, an opinion of counsel acceptable to the Agent stating that
such payment is exempt from Taxes. For purposes of this subsection (d) and subsection (e), the
terms “United States” and “United States person” shall have the meanings specified
in Section 7701 of the Internal Revenue Code.

(e) Each Lender, on or prior to the date of its execution and delivery of this Agreement in
the case of each Initial Lender and on the date of the Assumption Agreement or the Assignment and
Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as reasonably requested in writing by the Borrower (but only so long as such Lender
remains lawfully able to do so), shall, in the case of a Lender organized under the laws of a
jurisdiction outside the United States (a “Foreign Lender”) provide each of the Agent and
the Borrower with two original Internal Revenue Service Forms W-8BEN or W-8ECI, as appropriate, or
any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender
is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant
to this Agreement or the Notes or, in the case of a Lender organized under the laws of a
jurisdiction inside the United States, shall provide each of the Agent and the Borrower with two
original Internal Revenue Service Form W-9 or any successor form prescribed by the Internal Revenue
Service. Each Lender shall promptly notify the Agent and the Borrower if any information on a form
it has provided to the Agent and the Borrower pursuant to this Section 2.14(e) has become obsolete.
If the form provided by a Foreign Lender at the time such Foreign Lender first becomes a party to
this Agreement indicates a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be considered excluded from Taxes unless and until such Foreign
Lender provides the appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such
form; provided, however, that, in respect of a Foreign Lender, if at the date of
the Assignment and Acceptance pursuant to which a Foreign Lender assignee becomes a party to this
Agreement, the Foreign Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then, to such extent, the
term Taxes shall include (in addition to withholding taxes that may be imposed in the future or
other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable with
respect to the Lender assignee on such date.

(f) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form, certificate or other document described in Section 2.14(e) (other
than if such failure is due to a change in law, or in the interpretation or application
thereof, occurring subsequent to the date on which a form, certificate or other document originally
was required to be provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to indemnification under
Section 2.14(a) or (c) with respect to Taxes imposed by the United States by reason of such
failure; provided, however, that should a Lender become subject to Taxes because of
its failure to deliver a form, certificate or other document required hereunder, the Borrower shall
take such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes.

(g) Any Lender claiming any additional amounts payable pursuant to this Section 2.14 agrees to
use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to change the jurisdiction of its Eurodollar Lending Office if the making of such a change would
avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue
and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Revolving Credit Advances owing to it (other than pursuant to Section 2.11, 2.14 or
8.04(c)) in excess of its ratable share of payments on account of the Revolving Credit Advances
obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.15 may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount of such
participation.

SECTION 2.16. Evidence of Debt. (a) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Revolving Credit Advance owing to such Lender from time to time,
including the amounts of principal and interest payable and paid to such Lender from time to time
hereunder in respect of Revolving Credit Advances. The Borrower agrees that upon notice by any
Lender to the Borrower (with a copy of such notice to the Agent) to the effect that a Revolving
Credit Note is required or appropriate in order for such Lender to evidence (whether for purposes
of pledge, enforcement or otherwise) the Revolving Credit Advances owing to, or to be made by, such
Lender, the Borrower shall promptly execute and deliver to such Lender a Revolving Credit Note
payable to the order of such Lender in a principal amount up to the Commitment of such Lender.

(b) The Register maintained by the Agent pursuant to Section 8.07(d) shall include a control
account, and a subsidiary account for each Lender, in which accounts (taken together) shall be
recorded (i) the date and amount of each Borrowing made hereunder, the Type of Advances comprising
such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assumption Agreement and each Assignment and Acceptance delivered to and accepted by it, (iii) the
amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Lender hereunder and (iv) the amount of any sum received by the Agent from the Borrower
hereunder and each Lender’s share thereof.

(c) Entries made in good faith by the Agent in the Register pursuant to subsection (b) above,
and by each Lender in its account or accounts pursuant to subsection (a) above, shall be
prima facie evidence of the amount of principal and interest due and payable or to
become due and payable from the Borrower to, in the case of the Register, each Lender and, in the
case of such account or accounts, such Lender, under this Agreement, absent manifest error;
provided, however, that the failure of the Agent or such Lender to make an entry,
or any finding that an entry is incorrect, in the Register or such account or accounts shall not
limit or otherwise affect the obligations of the Borrower under this Agreement.

SECTION 2.17. Use of Proceeds. The proceeds of the Advances shall be available (and
the Borrower agrees that it shall use such proceeds) solely for general corporate purposes of the
Borrower and its Subsidiaries.

SECTION 2.18. Increase in the Aggregate Commitments. (a) The Borrower may by notice
to the Agent, request that the aggregate amount of the Commitment be increased by an amount of
$25,000,000 or an integral multiple thereof (each a “Commitment Increase”) to be effective
as of a date that is at least 30 days prior to the scheduled Termination Date then in effect (the
"Increase Date”) as specified in the related notice to the Agent; provided,
however that (i) in no event shall the aggregate amount of the Commitments at any time
exceed $450,000,000 and (ii) on the date of any request by the Borrower for a Commitment Increase
and on the related Increase Date, the applicable conditions set forth in Article III shall be
satisfied.

(b) The Agent shall promptly notify the Lenders of a request by the Borrower for a Commitment
Increase, which notice shall include (i) the proposed amount of such requested Commitment Increase,
(ii) the proposed Increase Date and (iii) the date by which Lenders wishing to participate in the
Commitment Increase must commit to an increase in the amount of their respective Commitments (the
"Commitment Date”). Each Lender that is willing to participate in such requested
Commitment Increase (each an “Increasing Lender”) shall, in its sole discretion, give
written notice to the Agent on or prior to the Commitment Date of the amount by which it is willing
to increase its Commitment. If the Lenders notify the Agent that they are willing to increase the
amount of their respective Commitments by an aggregate amount that exceeds the amount of the
requested Commitment Increase, the requested Commitment Increase shall be allocated among the
Lenders willing to participate therein in such amounts as are agreed between the Borrower and the
Agent.

(c) Promptly following each Commitment Date, the Agent shall notify the Borrower as to the
amount, if any, by which the Lenders are willing to participate in the requested Commitment
Increase. If the aggregate amount by which the Lenders are willing to participate in any requested
Commitment Increase on any such Commitment Date is less than the requested Commitment Increase,
then the Borrower may extend offers to one or more Eligible Assignees to participate in any portion
of the requested Commitment Increase that has not been committed to by the Lenders as of the
applicable Commitment Date; provided, however, that the Commitment of each such
Eligible Assignee shall be in an amount of $10,000,000 or an integral multiple of $1,000,000 in
excess thereof.

(d) On each Increase Date, each Eligible Assignee that accepts an offer to participate in a
requested Commitment Increase in accordance with Section 2.18(b) (each such Eligible Assignee, an
"Assuming Lender”) shall become a Lender party to this Agreement as of such Increase Date
and the Commitment of each Increasing Lender for such requested Commitment Increase shall be so
increased by such amount (or by the amount allocated to such Lender pursuant to the last sentence
of Section 2.18(b)) as of such Increase Date; provided, however, that the Agent
shall have received on or before such Increase Date the following, each dated such date:

(i) (A) certified copies of resolutions of the Board of Directors of the Borrower or
the Executive Committee of such Board approving the Commitment Increase and the
corresponding modifications to this Agreement and (B) an opinion of counsel for the Borrower
(which may be in-house counsel), in substantially the form of Exhibit D hereto;

(ii) an assumption agreement from each Assuming Lender, if any, in form and substance
satisfactory to the Borrower and the Agent (each an “Assumption Agreement”), duly
executed by such Eligible Assignee, the Agent and the Borrower; and

(iii) confirmation from each Increasing Lender of the increase in the amount of its
Commitment in a writing satisfactory to the Borrower and the Agent.

On each Increase Date, upon fulfillment of the conditions set forth in the immediately preceding
sentence of this Section 2.18(d), the Agent shall notify the Lenders (including, without
limitation, each Assuming Lender) and the Borrower, on or before 1:00 P.M. (New York City time), by
telecopier, of the occurrence of the Commitment Increase to be effected on such Increase Date and
shall record in the Register the relevant information with respect to each Increasing Lender and
each Assuming Lender on such date. Each Increasing Lender and each Assuming Lender shall, before
2:00 P.M. (New York City time) on the Increase Date, make available for the account of its
Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, in the case of
such Assuming Lender, an amount equal to such Assuming Lender’s ratable portion of the Revolving
Credit Borrowings then outstanding (calculated based on its Commitment as a percentage of the
aggregate Commitments outstanding after giving effect to the relevant Commitment Increase) and, in
the case of such Increasing Lender, an amount equal to the excess of (i) such Increasing Lender’s
ratable portion of the Revolving Credit Borrowings then outstanding (calculated based on its
Commitment as a percentage of the aggregate Commitments outstanding after giving effect to the
relevant Commitment Increase) over (ii) such Increasing Lender’s ratable portion of the Revolving
Credit Borrowings then outstanding (calculated based on its Commitment (without giving effect to
the relevant Commitment Increase) as a percentage of the aggregate Commitments (without giving
effect to the relevant Commitment Increase). After the Agent’s receipt of such funds from each
such Increasing Lender and each such Assuming Lender, the Agent will promptly thereafter cause to
be distributed like funds to the other Lenders for the account of their respective Applicable
Lending Offices in an amount to each other Lender such that the aggregate amount of the outstanding
Revolving Credit Advances owing to each Lender after giving effect to such distribution equals such
Lender’s ratable portion of the Revolving Credit Borrowings then outstanding (calculated based on
its Commitment as a percentage of the aggregate Commitments outstanding after giving effect to the
relevant Commitment Increase).

SECTION 2.19. Extension of Termination Date. Without any further action by or
consent of the Lenders, the Termination Date shall be extended to August 11, 2011 if, on or before
August 3, 2007, the Borrower shall have delivered to the Agent (each in form and substance
satisfactory to the Agent) the following: (a) a copy of the securities certificate registered with
the Pennsylvania Public Utility Commission (the “Securities Certificate”) authorizing the
Borrower’s incurring indebtedness hereunder with a maturity date of August 11, 2011, (b) an opinion
of counsel to the Borrower (which may be in-house counsel) stating that (i) the Securities
Certificate has been registered with the Pennsylvania Public Utility Commission in accordance with
Chapter 19 of the Pennsylvania Public Utility Code and by virtue of such registration, authorizes
the Borrower to incur indebtedness hereunder with a maturity date of August 11, 2011 and (ii) no
other authorizations are required by the Pennsylvania Public Utility Commission or by any other
state or local regulatory agency or governmental authority having jurisdiction over the Borrower
and (c) copies of corporate resolutions certified by the Secretary or Assistant Secretary of the
Borrower, or such other evidence as may be satisfactory to the Agent, demonstrating that the
Borrower’s incurrence of indebtedness hereunder with a maturity date of August 11, 2011 has been
duly authorized by all necessary corporate action, together with an opinion of counsel to the
Borrower (which may be in-house counsel) to such effect.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.
Sections 2.01 and 2.03 of this Agreement shall become effective on and as of the first date (the
"Effective Date”) on which the following conditions precedent have been satisfied:

(a) There shall have occurred no Material Adverse Change since September 30, 2005.

(b) There shall exist no action, suit, investigation, litigation or proceeding
affecting the Borrower or any of its Subsidiaries pending or threatened before any court,
governmental agency or arbitrator that (i) would be reasonably likely to have a Material
Adverse Effect other than the matters disclosed in the SEC Reports prior to the date hereof
(the “Disclosed Litigation”) or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any Note or the consummation of the transactions
contemplated hereby, and there shall have been no change in the Disclosed Litigation that
would have a Material Adverse Effect.

(c) All governmental and third party consents and approvals necessary in connection
with the transactions contemplated hereby shall have been obtained (without the imposition
of any conditions that are not acceptable to the Lenders) and shall remain in effect, and no
law or regulation shall be applicable in the reasonable judgment of the Lenders that
restrains, prevents or imposes materially adverse conditions upon the transactions
contemplated hereby.

(d) The Borrower shall have notified the Agent in writing as to the proposed Effective
Date.

(e) The Borrower shall have paid all accrued fees and expenses of the Agent and the
Lenders (including the reasonable accrued fees and expenses of counsel to the Agent).

(f) On the Effective Date, the following statements shall be true and the Agent shall
have received for the account of each Lender a certificate signed by a duly authorized
officer of the Borrower, dated the Effective Date, stating that:

(i) The representations and warranties contained in Section 4.01 are correct on
and as of the Effective Date,

(ii) No Material Adverse Change has occurred since September 30, 2005, and

(iii) No event has occurred and is continuing that constitutes a Default.

(g) The Agent shall have received on or before the Effective Date the following, each
dated such day, in form and substance satisfactory to the Agent and (except for the
Revolving Credit Notes) in sufficient copies for each Lender:

(i) The Revolving Credit Notes to the order of the Lenders to the extent
requested by any Lender pursuant to Section 2.16.

(ii) Certified copies of the resolutions of the Board of Directors of the
Borrower approving this Agreement and the Notes, and of all documents evidencing
other necessary corporate action and governmental approvals, if any, with respect to
this Agreement and the Notes.

(iii) A certificate of the Secretary or an Assistant Secretary of the Borrower
certifying the names and true signatures of the officers of the Borrower authorized
to sign this Agreement and the Notes and the other documents to be delivered
hereunder.

(iv) A favorable opinion of Morgan, Lewis & Bockius LLP, counsel for the
Borrower, substantially in the form of Exhibit D hereto and as to such other matters
as any Lender through the Agent may reasonably request.

(v) A favorable opinion of Shearman & Sterling LLP, counsel for the Agent, in
form and substance satisfactory to the Agent.

(h) The Borrower shall have terminated the commitments of the lenders and repaid or
prepaid all of the obligations under (or shall have provided for the repayment or prepayment
thereof with the proceeds of the initial Borrowing to be made hereunder on the Effective
Date), each of the bilateral credit facilities listed on Schedule 3.01(h) hereto, and each
of the Lenders that is a party to any such credit facility hereby waives, upon execution of
this Agreement, any notice required by said credit facility relating to the termination of
commitments thereunder.

SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and
Commitment Increase. The obligation of each Lender to make a Revolving Credit Advance on the
occasion of each Revolving Credit Borrowing and each Commitment Increase shall be
subject to the conditions precedent that the Effective Date shall have occurred and on the date of
such Revolving Credit Borrowing or the applicable Increase Date the following statements shall be
true (and each of the giving of the applicable Notice of Revolving Credit Borrowing, request for
Commitment Increase and the acceptance by the Borrower of the proceeds of such Revolving Credit
Borrowing shall constitute a representation and warranty by the Borrower that on the date of such
Borrowing or such Increase Date such statements are true):

(a) the representations and warranties contained in Section 4.01 are correct on and as
of such date, before and after giving effect to such Revolving Credit Borrowing, such
Commitment Increase and to the application of the proceeds therefrom, as though made on and
as of such date, except to the extent such representations and warranties expressly relate
to any earlier date, in which case such representations and warranties were true and correct
as of such earlier date, and

(b) no event has occurred and is continuing, or would result from such Revolving Credit
Borrowing, such Commitment Increase or from the application of the proceeds therefrom, that
constitutes a Default.

SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The obligation
of each Lender that is to make a Competitive Bid Advance on the occasion of a Competitive Bid
Borrowing to make such Competitive Bid Advance as part of such Competitive Bid Borrowing is subject
to the conditions precedent that (i) the Agent shall have received the written confirmatory Notice
of Competitive Bid Borrowing with respect thereto, (ii) on or before the date of such Competitive
Bid Borrowing, but prior to such Competitive Bid Borrowing, the Agent shall have received a
Competitive Bid Note payable to the order of such Lender for each of the one or more Competitive
Bid Advances to be made by such Lender as part of such Competitive Bid Borrowing, in a principal
amount equal to the principal amount of the Competitive Bid Advance to be evidenced thereby and
otherwise on such terms as were agreed to for such Competitive Bid Advance in accordance with
Section 2.03, and (iii) on the date of such Competitive Bid Borrowing the following statements
shall be true (and each of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower of the proceeds of such Competitive Bid Borrowing shall constitute a
representation and warranty by the Borrower that on the date of such Competitive Bid Borrowing such
statements are true):

(a) the representations and warranties contained in Section 4.01 are correct on and as
of the date of such Competitive Bid Borrowing, before and after giving effect to such
Competitive Bid Borrowing and to the application of the proceeds therefrom, as though made
on and as of such date, except to the extent such representations and warranties expressly
relate to any earlier date, in which case such representations and warranties were true and
correct as of such earlier date, and

(b) no event has occurred and is continuing, or would result from such Competitive Bid
Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

SECTION 3.04. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an
officer of the Agent responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice to the Lenders,
designates as the proposed Effective Date, specifying its objection thereto. The Agent shall
promptly notify the Lenders of the occurrence of the Effective Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrower. The Borrower represents and
warrants as follows:

(a) The Borrower is a corporation duly organized, validly existing and currently
subsisting under the laws of the Commonwealth of Pennsylvania.

(b) The execution, delivery and performance by the Borrower of this Agreement and the
Notes to be delivered by it, and the consummation of the transactions contemplated hereby,
are within the Borrower’s corporate powers, have been duly authorized by all necessary
corporate action, and do not contravene (i) the Borrower’s charter or by-laws or (ii) any
applicable law or any contractual restriction binding on or affecting the Borrower,
provided that any increase of the Commitments in accordance with Section 2.18 shall
require corporate action for the due authorization thereof prior to the effectiveness of
such increase.

(c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is required for the
due execution, delivery and performance by the Borrower of this Agreement or the Notes to be
delivered by it, provided that any increase of the Commitments in accordance with
Section 2.18 and the extension of the Termination Date in accordance with Section 2.19 shall
require appropriate governmental or third party authorization thereof prior to the
effectiveness of such increase or such extension, as the case may be.

(d) This Agreement has been, and each of the Notes to be delivered by it when delivered
hereunder will have been, duly executed and delivered by the Borrower. This Agreement is,
and each of the Notes when delivered hereunder will be, the legal, valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with their
respective terms.

(e) The Consolidated balance sheet of the Borrower and its Subsidiaries as at September
30, 2005, and the related Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of
PricewaterhouseCoopers LLP, independent public accountants, and the Consolidated balance
sheet of the Borrower and its Subsidiaries as at March 30, 2006, and the related
Consolidated statements of income and cash flows of the Borrower and its Subsidiaries for
the six months then ended, copies of which have been included in the SEC Filings prior to
the date hereof, fairly present, subject, in the case of said balance sheet as at March 30,
2006, and said statements of income and cash flows for the six months then ended, to
year-end audit adjustments and the presentation of footnotes not required by Regulation S-X
to be included in interim financial statements, the Consolidated financial condition of the
Borrower and its Subsidiaries as at such dates and the Consolidated results of the
operations of the Borrower and its Subsidiaries for the periods ended on such dates, all in
accordance with generally accepted accounting principles consistently applied.

(f) There is no pending or threatened action, suit, investigation, litigation or
proceeding, including, without limitation, any Environmental Action, affecting the Borrower
or any of its Subsidiaries before any court, governmental agency or arbitrator that
(i) would be reasonably likely to have a Material Adverse Effect (other than the Disclosed
Litigation) or (ii) purports to affect the legality, validity or enforceability of this
Agreement or any Note or the consummation of the transactions contemplated hereby, and there
has been no change in the status, or financial effect on the Borrower or any of its
Subsidiaries, of the Disclosed Litigation that would have a Material Adverse Effect.

(g) The Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board
of Governors of the Federal Reserve System), and no proceeds of any Advance will be used to
purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

(h) 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.

(i) Neither the Confidential Information Memorandum (other than any projections
included therein) nor any other information, exhibit or report furnished by the Borrower to
the Agent or any Lender pursuant to the terms of this Agreement, nor any of the information
contained herein contained any untrue statement of a material fact or omitted to state a
material fact necessary to make the statements made therein and herein not misleading in
light of the circumstances under which they were made.

(j) All financial projections included in the Confidential Information Memorandum
furnished by or on behalf of the Borrower have been prepared in good faith based upon
reasonable assumptions (it being understood that such projections are subject to significant
uncertainties and contingencies, many of which are beyond the Borrower’s control, and that
no assurance can be given that the projections will be realized).

ARTICLE V

COVENANTS OF THE BORROWER

SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain unpaid or
any Lender shall have any Commitment hereunder, the Borrower will:

(a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to
comply with all applicable laws, rules, regulations and orders, such compliance to include,
without limitation, compliance with ERISA, Environmental Laws and the Patriot Act, except
where the necessity of compliance therewith is contested in good faith by appropriate
proceedings or except where the failure to comply would not reasonably be expected to have a
Material Adverse Effect.

(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its property and
(ii) all lawful claims that, if unpaid, might by law become a Lien upon its property, except
where the necessity of compliance therewith is contested in good faith by appropriate
proceedings, against which appropriate reserves are being maintained in accordance
with GAAP or except where the failure to comply would not reasonably be expected
to have a Material Adverse Effect.

(c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations in
such amounts and covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in which the Borrower or
such Subsidiary operates; provided, however, that the Borrower and its
Subsidiaries may self-insure to the extent consistent with prudent business practice.

(d) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause
each of its Subsidiaries to preserve and maintain, its corporate existence, rights (charter
and statutory) and franchises; provided, however, that the Borrower and its
Subsidiaries may consummate any merger or consolidation permitted under Section 5.02(b) and
provided further that neither the Borrower nor any of its Subsidiaries shall
be required to preserve any right or franchise if the Board of Directors of the Borrower or
such Subsidiary shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Borrower or such Subsidiary, as the case may be, and that the
loss thereof is not disadvantageous in any material respect to the Borrower and its
Subsidiaries taken as a whole or the Lenders.

(e) Visitation Rights. At reasonable times and upon five Business Days prior
notice, permit the Agent or any of the Lenders or any agents or representatives thereof at
their respective expense, to examine and make copies of and abstracts from the records and
books of account of, and visit the properties of, the Borrower and any of its Subsidiaries,
and to discuss the affairs, finances and accounts of the Borrower and any of its
Subsidiaries with any of their officers or directors and with their independent certified
public accountants.

(f) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper
books of record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Borrower and each such Subsidiary
in accordance with generally accepted accounting principles in effect from time to time.

(g) Maintenance of Properties, Etc. Maintain and preserve, and cause each of
its Material Subsidiaries to maintain and preserve, all of its material properties that are
necessary in the conduct of its business in good working order and condition, ordinary wear
and tear excepted.

(h) Reporting Requirements. Furnish to the Lenders:

(i) as soon as available and in any event within 50 days after the end of each
of the first three quarters of each fiscal year of the Borrower, the Consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such quarter and
Consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous fiscal year and
ending with the end of such quarter, duly certified (subject to year-end audit
adjustments and the presentation of footnotes not required by Regulation S-X to be
included in interim financial statements) by the chief financial officer of the
Borrower as having been prepared in accordance with GAAP and certificates of the
chief financial officer of the Borrower as to compliance with the terms of this
Agreement and setting forth in reasonable detail the calculations necessary to
demonstrate compliance with Section 5.03;

(ii) as soon as available and in any event within 95 days after the end of each
fiscal year of the Borrower, a copy of the annual audit report for such year for the
Borrower and its Subsidiaries, containing the Consolidated balance sheet of the
Borrower and its Subsidiaries as of the end of such fiscal year and Consolidated
statements of income and cash flows of the Borrower and its Subsidiaries for such
fiscal year, in each case accompanied by an opinion acceptable to the Required
Lenders by PricewaterhouseCoopers LLP or other independent public accountants
acceptable to the Required Lenders and certificates of the chief financial officer
of the Borrower as to compliance with the terms of this Agreement and setting forth
in reasonable detail the calculations necessary to demonstrate compliance with
Section 5.03;

(iii) as soon as possible and in any event within five Business Days after the
Borrower obtains knowledge of any Default continuing on the date of such statement,
a statement of the chief financial officer of the Borrower setting forth details of
such Default and the action that the Borrower has taken and proposes to take with
respect thereto;

(iv) promptly after the sending or filing thereof, copies of all reports that
the Borrower sends to any of its securityholders, and copies of all reports and
registration statements that the Borrower or any Subsidiary files with the
Securities and Exchange Commission or any national securities exchange;

(v) prompt notice of all actions and proceedings before any court, governmental
agency or arbitrator affecting the Borrower or any of its Subsidiaries of the type
described in Section 4.01(f); and

(vi) such other information respecting the Borrower or any of its Subsidiaries
as any Lender through the Agent may from time to time reasonably request.

SECTION 5.02. Negative Covenants. So long as any Advance shall remain unpaid or any
Lender shall have any Commitment hereunder, the Borrower will not:

(a) Liens, Etc. Create or suffer to exist, or permit any of its Subsidiaries
to create or suffer to exist, any Lien on or with respect to any of its properties, whether
now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any
right to receive income, other than:

(i) Permitted Liens,

(ii) Liens upon any property acquired, constructed or improved after the date
hereof by the Borrower or a Subsidiary which are created or incurred
contemporaneously with or within 180 days after such acquisition, construction or
improvement to secure or provide for the payment of any part of the purchase price
of such property or the cost of such construction or improvement or Debt incurred to
pay that purchase price or cost of construction or improvement (but no other
amounts), provided, however, that no such Lien shall extend to or
cover any properties of any character other than the real property or equipment
being acquired, and no such extension, renewal or replacement shall extend to or
cover any properties not theretofore subject to the Lien being extended, renewed or
replaced,

(iii) the Liens existing on the Effective Date and described on
Schedule 5.02(a) hereto,

(iv) Liens on property of a Person existing at the time such Person is merged
into or consolidated with the Borrower or any Subsidiary of the Borrower or becomes
a Subsidiary of the Borrower and Liens existing on assets at the time of their
acquisition; provided that such Liens were not created in contemplation of
such merger, consolidation or acquisition and do not extend to any assets other than
those of the Person so merged into or consolidated with the Borrower or such
Subsidiary or acquired by the Borrower or such Subsidiary or those assets so
acquired, as the case may be,

(v) Liens arising from legal proceedings being contested by the Borrower in
good faith by appropriate legal or administrative proceedings,

(vi) Liens on cash and cash equivalents securing obligations pursuant to
non-speculative Hedge Agreements,

(vii) Liens arising from legal proceedings being contested by the Borrower in
good faith by appropriate legal or administrative proceedings,

(viii) Liens arising from Section 302 of ERISA or pursuant to the PBGC’s
authority under Title IV of ERISA in an aggregate principal amount not to exceed
$25,000,000 at any time outstanding,

(ix) Liens arising pursuant to any Non-recourse Debt,

(x) Liens arising in connections with the issuance of industrial revenue bonds
or pollution control bonds,

(xi) Liens created in connection with inventory management agreements in the
ordinary course of business that do not in the aggregate materially detract from the
value of the Borrower’s Consolidated assets or materially impair the use thereof in
the operation of its business,

(xii) other Liens securing Debt or other obligations in an aggregate principal
amount not to exceed 5% of the Consolidated Total Capital at any time outstanding,
and

(xiii) the replacement, extension or renewal of any Lien permitted by
clause (iii) or (iv) above upon or in the same property theretofore subject thereto
or the replacement, extension or renewal (without increase in the amount or change
in any direct or contingent obligor) of the Debt secured thereby.

(b) Mergers, Etc. Merge or consolidate with or into, or convey, transfer,
lease or otherwise dispose of (whether in one transaction or in a series of transactions)
all or substantially all of its assets (whether now owned or hereafter acquired) to, any
Person, or permit any of its Subsidiaries to do so, except that any Subsidiary of the
Borrower may merge or consolidate with or into, or dispose of assets to, any other
Subsidiary of the Borrower, and except that any Subsidiary of the Borrower may merge into or
dispose of assets to the Borrower and the Borrower may merge with any other Person so long
as the Borrower is the surviving corporation, provided, in each case, that no
Default shall have occurred and be continuing at the time of such proposed transaction or
would result therefrom.

(c) Accounting Changes. Make or permit, or permit any of its Subsidiaries to
make or permit, any change in accounting policies or reporting practices, except as required
or permitted by generally accepted accounting principles.

(d) Change in Nature of Business. Make, or permit any of its Subsidiaries to
make, any material change in the nature of its business as carried on at the date hereof.

(e) Preferred Equity. Issue any preferred equity to UGI Corporation. in
consideration of its contribution to the Borrower in connection with the acquisition of PG
Energy.

SECTION 5.03. Financial Covenant. So long as any Advance shall remain unpaid or any
Lender shall have any Commitment hereunder, the Borrower will maintain a ratio of Consolidated Debt
to the Consolidated Total Capital of not greater than 0.65:1.00.

ARTICLE VI

EVENTS OF DEFAULT

SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

(a) The Borrower shall fail to pay any principal of any Advance when the same becomes
due and payable; or the Borrower shall fail to pay any interest on any Advance or make any
other payment of fees or other amounts payable under this Agreement or any Note within five
Business Days after the same becomes due and payable; or

(b) Any representation or warranty made by the Borrower herein or by the Borrower (or
any of its officers) in connection with this Agreement shall prove to have been incorrect in
any material respect when made; or

(c) (i) The Borrower shall fail to perform or observe any term, covenant or agreement
contained in Section 5.01(d), (e) or (h)(iii), 5.02 or 5.03, or (ii) the Borrower shall fail
to perform or observe any term, covenant or agreement contained in Section 5.01(h) (other
than clause (iii) thereof) if such failure shall remain unremedied for 5 days after written
notice thereof shall have been given to the Borrower by the Agent or any Lender; or
(iii) the Borrower shall fail to perform or observe any other term, covenant or agreement
contained in this Agreement on its part to be performed or observed if such failure shall
remain unremedied for 30 days after written notice thereof shall have been given to the
Borrower by the Agent or any Lender; or

(d) The Borrower or any of its Subsidiaries shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal or notional amount of at
least $25,000,000 in the aggregate (but excluding Debt outstanding hereunder) of the
Borrower or such Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and
such failure shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or instrument, if the
effect of such event or condition is to accelerate, or to permit the acceleration of, the
maturity of such Debt; or any such Debt shall be declared to be due and payable, or required
to be prepaid or redeemed (other than by a regularly scheduled required prepayment or
redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such
Debt shall be required to be made, in each case prior to the stated maturity thereof; or

(e) The Borrower or any of its Material Subsidiaries shall generally not pay its debts
as such debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or any
proceeding shall be instituted by or against the Borrower or any of its Material
Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days,
or any of the actions sought in such proceeding (including, without limitation, the entry of
an order for relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall occur; or the
Borrower or any of its Material Subsidiaries shall take any corporate action to authorize
any of the actions set forth above in this subsection (e); or

(f) Judgments or orders for the payment of money in excess of $25,000,000 in the
aggregate shall be rendered against the Borrower or any of its Material Subsidiaries and
either (i) enforcement proceedings shall have been commenced by any creditor upon such
judgment or order or (ii) there shall be any period of 30 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise,
shall not be in effect; or

(g) (i) Any Person or two or more Persons acting in concert (other than UGI
Corporation) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act of 1934), directly
or indirectly, of Voting Stock of the Borrower (or other securities convertible into such
Voting Stock) representing 30% or more of the combined voting power of all Voting Stock of
the Borrower; or (ii) during any period of up to 12 consecutive months, commencing after the
date of this Agreement, a majority of the members of the board of directors of the Borrower
cease to be composed of individuals (x) who were members of that board on the first day of
such period, (y) whose election or nomination to that board was approved by individuals
referred to in clause (x) above constituting at the time of such election or nomination at
least a majority of that board or (z) whose election or nomination to that board was
approved by individuals referred to in clauses (x) and (y) above constituting at the time of
such election or nomination at least a majority of that board (excluding, in the case of
both clause (y) and clause (z), any individual whose initial nomination for, or assumption
of office as, a member of that board occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more directors by
any person or group other than a solicitation for the election of one or more directors by
or on behalf of the board of directors); or (iii) the Borrower shall cease for any reason to
be directly or indirectly wholly-owned by UGI Corporation; or

(h) The Borrower or any of its ERISA Affiliates shall incur, or be reasonably likely to
incur, liability in excess of $25,000,000 as a result of one or more ERISA Events
described in subsections (c), (f) or (h) of the definition of ERISA Event, or shall fail to
pay when due an amount or amounts aggregating in excess of $25,000,000 as a result of one or
more of the following: (i) the occurrence of any other ERISA Event; (ii) the partial or
complete withdrawal of the Borrower or any of its ERISA Affiliates from a Multiemployer
Plan; or (iii) the reorganization or termination of a Multiemployer Plan;

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances
to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or
may with the consent, of the Required Lenders, by notice to the Borrower, declare the Advances, all
interest thereon and all other amounts payable under this Agreement to be forthwith due and
payable, whereupon the Advances, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower; provided, however, that in
the event of an actual or deemed entry of an order for relief with respect to the Borrower under
the Federal Bankruptcy Code, (A) the obligation of each Lender to make Advances shall automatically
be terminated and (B) the Advances, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by the Borrower.

ARTICLE VII

THE AGENT

SECTION 7.01. Authorization and Action. Each Lender hereby appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof, together with such powers
and discretion as are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of the Notes), the
Agent shall not be required to exercise any discretion or take any action, but shall be required to
act or to refrain from acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Required Lenders, and such instructions shall be binding upon all
Lenders and all holders of Notes; provided, however, that the Agent shall not be
required to take any action that exposes the Agent to personal liability or that is contrary to
this Agreement or applicable law. The Agent agrees to give to each Lender prompt notice of each
notice given to it by the Borrower pursuant to the terms of this Agreement.

SECTION 7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement, except for its or their own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing, the Agent: (i) may
treat the Lender that made any Advance as the holder of the Debt resulting therefrom until the
Agent receives and accepts an Assumption Agreement entered into by an Assuming Lender as provided
in Section 2.18 or an Assignment and Acceptance entered into by such Lender, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other experts selected by
it and shall not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the performance,
observance or satisfaction of any of the terms, covenants or conditions of this Agreement on the
part of the Borrower or the existence at any time of any Default or to inspect the property
(including the books and records) of the Borrower; (v) shall not be responsible to any Lender for
the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telecopier) believed by it to be genuine and signed or
sent by the proper party or parties.

SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the Advances
made by it and the Note issued to it, Citibank shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not the Agent; and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Citibank in its
individual capacity. Citibank and its Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and generally engage in any
kind of business with, the Borrower, any of its Subsidiaries and any Person who may do business
with or own securities of the Borrower or any such Subsidiary, all as if Citibank were not the
Agent and without any duty to account therefor to the Lenders. The Agent shall have no duty to
disclose any information obtained or received by it or any of its Affiliates relating to the
Borrower or any of its Subsidiaries to the extent such information was obtained or received in any
capacity other than as Agent. In the event that Citibank or any of its Affiliates shall be or
become an indenture trustee under the Trust Indenture Act of 1939 (as amended, the “Trust
Indenture Act”) in respect of any securities issued or guaranteed by the Borrower, the parties
hereto acknowledge and agree that any payment or property received in satisfaction of or in respect
of any obligation of the Borrower hereunder or under any other Loan Document by or on behalf of
Citibank in its capacity as the Agent for the benefit of any Lender under this Agreement or any
Note (other than Citibank or an Affiliate of Citibank) and which is applied in accordance with this
Agreement shall be deemed to be exempt from the requirements of Section 311 of the Trust Indenture
Act pursuant to Section 311(b)(3) of the Trust Indenture Act.

SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based on the financial
statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the 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 decisions in taking or not taking action under this Agreement.

SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent (to the
extent not reimbursed by the Borrower), ratably according to the respective principal amounts of
the Revolving Credit Advances then owed to each of them (or if no Revolving Credit Advances are at
the time outstanding, ratably according to the respective amounts of their Commitments), from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against the Agent in any way relating to or arising out of this Agreement
or any action taken or omitted by the Agent under this Agreement (collectively, the
"Indemnified Costs”), provided that no Lender shall be liable for any portion of
the Indemnified Costs resulting from the Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Agent in
connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that the Agent is not
reimbursed for such expenses by the Borrower. In the case of any investigation, litigation or
proceeding giving rise to any Indemnified Costs, this Section 7.05 applies whether any such
investigation, litigation or proceeding is brought by the Agent, any Lender or a third party.

SECTION 7.06. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause
by the Required Lenders. Upon any such resignation or removal, the Required Lenders, in
consultation with the Borrower (so long as no Event of Default exists), shall have the right to
appoint a successor Agent. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving
of notice of resignation or the Required Lenders’ removal of the retiring Agent, then the retiring
Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a commercial bank
organized under the laws of the United States of America or of any State thereof and having a
combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and
the retiring Agent shall be discharged from its duties and obligations under this Agreement. After
any retiring Agent’s resignation or removal hereunder as Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent
under this Agreement.

SECTION 7.07. Other Agents. Each Lender hereby acknowledges that neither the
syndication agent nor any other Lender designated as any “Agent” on the signature pages hereof has
any liability hereunder other than in its capacity as a Lender.

ARTICLE VIII

MISCELLANEOUS

SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Revolving Credit Notes, nor consent to any departure by the Borrower therefrom,
shall in any event be effective unless the same shall be in writing and signed by the Required
Lenders and the Borrower, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no
amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the
following: (a) waive any of the conditions specified in Section 3.01, (b) increase the Commitments
of the Lenders (other than as contemplated by Section 2.18), (c) reduce the principal of, or
interest on, the Revolving Credit Advances or any fees or other amounts payable hereunder,
(d) postpone any date fixed for any payment of principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (e) change the percentage of the
Commitments (other than an adjustment in connection with a Commitment Increase) or of the aggregate
unpaid principal amount of the Revolving Credit Advances, or the number of Lenders, that shall be
required for the Lenders or any of them to take any action hereunder or (f) amend this
Section 8.01; and provided further that no amendment, waiver or consent shall,
unless in writing and signed by the Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Agent under this Agreement or any Note.

SECTION 8.02. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be either (x) in writing (including telecopier communication) and mailed,
telecopied or delivered or (y) as and to the extent set forth in Section 8.02(b) and in the proviso
to this Section 8.02(a), if to the Borrower, at its address at 100 Kachel Boulevard, Suite 400, 100
Green Hills Corporate Center, Reading, PA 19607, Attention: Chief Financial Officer, with a copy
to UGI Utilities, Inc., Box 858, Valley Forge, PA 19482, Attention: General Counsel; if to any
Initial Lender, at its Domestic Lending Office specified opposite its name on Schedule I hereto; if
to any other Lender, at its Domestic Lending Office specified in the Assumption Agreement or the
Assignment and Acceptance pursuant to which it became a Lender; and if to the Agent, at its address
at Two Penns Way, New Castle, Delaware 19720, Attention: Bank Loan Syndications Department; or, as
to the Borrower or the Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Agent, provided that
materials required to be delivered pursuant to Section 5.01(h)(i), (ii) or (iv) shall be delivered
to the Agent as specified in Section 8.02(b) or as otherwise specified to the Borrower by the
Agent. All such notices and communications shall, when mailed, telecopied or e-mailed, be
effective when deposited in the mails, telecopied or confirmed by e-mail, respectively, except that
notices and communications to the Agent pursuant to Article II, III or VII shall not be effective
until received by the Agent. Delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

(b) So long as Citibank or any of its Affiliates is the Agent, materials required to be
delivered pursuant to Section 5.01(h)(i), (ii) and (iv) shall be delivered to the Agent in an
electronic medium in a format acceptable to the Agent and the Lenders by e-mail at
oploanswebadmin@citigroup.com. The Borrower agrees that the Agent may make such materials, as well
as any other written information, documents, instruments and other material relating to the
Borrower, any of its Subsidiaries or any other materials or matters relating to this Agreement, the
Notes or any of the transactions contemplated hereby (collectively, the “Communications”)
available to the Lenders by posting such notices on Intralinks or a substantially similar
electronic system (the “Platform”). The Borrower acknowledges that (i) the distribution of
material through an electronic medium is not necessarily secure and that there are confidentiality
and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as
available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or
completeness of the Communications or the Platform and each expressly disclaims liability for
errors or omissions in the Communications or the Platform. No warranty of any kind, express,
implied or statutory, including, without limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or freedom from viruses or other code
defects, is made by the Agent or any of its Affiliates in connection with the Platform.

(c) Each Lender agrees that notice to it (as provided in the next sentence) (a
"Notice”) specifying that any Communications have been posted to the Platform shall
constitute effective delivery of such information, documents or other materials to such Lender for
purposes of this Agreement; provided that if requested by any Lender the Agent shall
deliver a copy of the Communications to such Lender by email or telecopier. Each Lender agrees (i)
to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent by
electronic transmission (including by electronic communication) on or before the date such Lender
becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on
record an effective e-mail address for such Lender) and (ii) that any Notice may be sent to such
e-mail address.

SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent
to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on demand all
costs and expenses of the Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement, the Notes and the other documents to
be delivered hereunder, including, without limitation, (A) all due diligence, syndication
(including printing, distribution and bank meetings), transportation, computer, duplication,
appraisal, consultant, and audit expenses and (B) the reasonable fees and expenses of counsel for
the Agent with respect thereto and with respect to advising the Agent as to its rights and
responsibilities under this Agreement. The Borrower further agrees to pay promptly all costs and
expenses of the Agent and the Lenders, if any (including, without limitation, reasonable counsel
fees and expenses), in connection with the enforcement (whether through negotiations, legal
proceedings or otherwise) of this Agreement, the Notes and the other documents to be delivered
hereunder, including, without limitation, reasonable fees and expenses of counsel for the Agent and
each Lender in connection with the enforcement of rights under this Section 8.04(a).

(b) The Borrower agrees to indemnify and hold harmless the Agent and each Lender and each of
their Affiliates and their officers, directors, employees, agents and advisors (each, an
"Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
reasonable expenses (including, without limitation, reasonable fees and expenses of counsel)
incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection with any
investigation, litigation or proceeding or preparation of a defense in connection therewith)
(i) the Notes, this Agreement, any of the transactions contemplated herein or the actual or
proposed use of the proceeds of the Advances or (ii) the actual or alleged presence of Hazardous
Materials on any property of the Borrower or any of its Subsidiaries or any Environmental Action
relating in any way to the Borrower or any of its Subsidiaries, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity
in this Section 8.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Borrower, its directors, equityholders or
creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated hereby are consummated.
The Borrower also agrees not to assert any claim for special, indirect, consequential or punitive
damages against the Agent, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys and agents, on any theory of liability, arising out of or
otherwise relating to the Notes, this Agreement, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Advances.

(c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance or LIBO Rate
Advance is made by the Borrower to or for the account of a Lender other than on the last day of the
Interest Period for such Advance, as a result of a payment or Conversion pursuant to
Section 2.08(d) or (e), 2.10 or 2.12, acceleration of the maturity of the Notes pursuant to
Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last
day of the Interest Period for such Advance upon an assignment of rights and obligations under this
Agreement pursuant to Section 8.07 as a result of a demand by the Borrower pursuant to Section
8.07(a), the Borrower shall, upon demand by such Lender (with a copy of such demand to the Agent),
pay to the Agent for the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses that it may reasonably incur as a result of such payment
or Conversion, including, without limitation, any loss (excluding loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by any Lender to fund or maintain such Advance.

(d) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in Sections 2.11, 2.14 and 8.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder and under the
Notes.

SECTION 8.05. Right of Set-off. Upon either (a) the occurrence and during the
continuance of any Event of Default under Section 6.01(a) or 6.01(e) or (b) (i) the occurrence and
during the continuance of any other Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to declare the Notes due
and payable pursuant to the provisions of Section 6.01, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement and the Note held by such Lender, whether or not
such Lender shall have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Borrower after any such
set-off and application, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its Affiliates under this
Section are in addition to other rights and remedies (including, without limitation, other rights
of set-off) that such Lender and its Affiliates may have.

SECTION 8.06. Binding Effect. This Agreement shall become effective (other than
Sections 2.01 and 2.03, which shall only become effective upon satisfaction of the conditions
precedent set forth in Section 3.01) when it shall have been executed by the Borrower and the Agent
and when the Agent shall have been notified by each Initial Lender that such Initial Lender has
executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that the Borrower shall
not have the right to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

SECTION 8.07. Assignments and Participations. (a) Each Lender may and, if demanded
by the Borrower (following a demand by such Lender pursuant to Section 2.11 or 2.14 or notice from
such Lender under Section 2.12) upon at least five Business Days’ notice to such Lender and the
Agent, will assign to one or more Persons all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment, the Revolving Credit
Advances owing to it and the Revolving Credit Note or Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a varying,
percentage of all rights and obligations under this Agreement (other than any right to make
Competitive Bid Advances, Competitive Bid Advances owing to it and Competitive Bid Notes),
(ii) except in the case of an assignment to a Person that, immediately prior to such assignment,
was a Lender or an assignment of all of a Lender’s rights and obligations under this Agreement, the
amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such assignment) shall
in no event be less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof unless
the Borrower and the Agent otherwise agree, (iii) each such assignment shall be to an Eligible
Assignee, (iv) each such assignment made as a result of a demand by the Borrower pursuant to this
Section 8.07(a) shall be arranged by the Borrower after consultation with the Agent and shall be
either an assignment of all of the rights and obligations of the assigning Lender under this
Agreement or an assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the rights and
obligations of the assigning Lender under this Agreement, (v) no Lender shall be obligated to make
any such assignment as a result of a demand by the Borrower pursuant to this Section 8.07(a) unless
and until such Lender shall have received one or more payments from either the Borrower or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate outstanding
principal amount of the Advances owing to such Lender, together with accrued interest thereon to
the date of payment of such principal amount and all other amounts payable to such Lender under
this Agreement, and (vi) the parties to each such assignment shall execute and deliver to the
Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together
with any Revolving Credit Note subject to such assignment and a processing and recordation fee of
$3,500 payable by the parties to each such assignment, provided, however, that in
the case of each assignment made as a result of a demand by the Borrower, such recordation fee
shall be payable by the Borrower except that no such recordation fee shall be payable in the case
of an assignment made at the request of the Borrower to an Eligible Assignee that is an existing
Lender. Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the Lender
assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights (other than its rights
under Sections 2.11, 2.14 and 8.04 to the extent any claim thereunder relates to an event arising
prior to such assignment) and be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto).

(b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under this
Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, such
assigning Lender 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 decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such
assignee appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to the Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by it as a Lender.

(c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Revolving Credit Note or
Notes subject to such assignment, the Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrower.

(d) The Agent shall maintain at its address referred to in Section 8.02 a copy of each
Assumption Agreement and each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the Commitment of, and
principal amount of the Advances owing to, each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in
the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower or any Lender at any reasonable time and from time to time
upon reasonable prior notice.

(e) Each Lender may sell participations to one or more banks or other entities (other than the
Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitment, the Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender’s obligations under this Agreement (including, without limitation, its Commitment to the
Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Lender shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Agent 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 and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any provision of this
Agreement or any Note, or any consent to any departure by the Borrower therefrom, except to the
extent that such amendment, waiver or consent would reduce the principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the extent subject to such
participation, or postpone any date fixed for any payment of principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the extent subject to such
participation.

(f) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 8.07, disclose to the assignee or participant or proposed
assignee or participant, any information relating to the Borrower furnished to such Lender by or on
behalf of the Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the confidentiality of any
Borrower Information relating to the Borrower received by it from such Lender.

(g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement
(including, without limitation, the Advances owing to it and any Note or Notes held by it) in favor
of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System.

SECTION 8.08. Confidentiality. Neither the Agent nor any Lender may disclose to any
Person any confidential, proprietary or non-public information of the Borrower furnished to the
Agent or the Lenders by the Borrower (such information being referred to collectively herein as the
"Borrower Information”), except that each of the Agent and each of the Lenders may disclose
Borrower Information (i) to its and its affiliates’ employees, officers, directors, agents and
advisors (it being understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Borrower Information and instructed to keep such Borrower
Information confidential on substantially the same terms as provided herein), (ii) to the extent
requested by any regulatory authority, (iii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement,
(v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding
relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an agreement
containing provisions substantially the same as those of this Section 8.08, to any assignee or
participant or prospective assignee or participant, (vii) to the extent such Borrower Information
(A) is or becomes generally available to the public on a non-confidential basis other than as a
result of a breach of this Section 8.08 by the Agent or such Lender, or (B) is or becomes available
to the Agent or such Lender on a nonconfidential basis from a source other than the Borrower and
(viii) with the consent of the Borrower.

SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York.

SECTION 8.10. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in any such New York State court or, to the extent
permitted by law, in such federal court in New York City. The Borrower hereby irrevocably consents
to the service of process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail, postage prepaid, to the Borrower at its address
specified pursuant to Section 8.02. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding relating to this
Agreement or the Notes in the courts of any jurisdiction.

(b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or the
Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

SECTION 8.12. Patriot Act Notice. Each Lender and the Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Patriot
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 or the Agent, as applicable, to identify the Borrower in accordance with the Patriot
Act. The Borrower shall provide, to the extent commercially reasonable, such information and take
such actions as are reasonably requested by the Agent or any Lenders in order to assist the Agent
and the Lenders in maintaining compliance with the Patriot Act.

1

SECTION 8.13. Waiver of Jury Trial. Each of the Borrower, the Agent and the Lenders
hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the
Notes or the actions of the Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

UGI UTILITIES, INC.

By      

Title:

CITIBANK, N.A.,

as Agent

By      

Title:

Initial Lenders

	 	 	 	 	 
	Commitment

	 	

	 	

	 

	 	

	 	

	$60,000,000

	 	 	 	CITIBANK, N.A.
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	60,000,000

	 	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$50,000,000

	 	 	 	CITIZENS BANK OF PENNSYLVANIA
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$50,000,000

	 	 	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$32,500,000

	 	 	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 

2

	 	 	 	 	 
	 
	 	 	 	 
	$32,500,000

	 	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$32,500,000

	 	 	 	MELLON BANK, N.A.
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$32,500,000

	 	 	 	PNC BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	
 
	 	 	 	By      

Title:
	 
	 	 	 	 
	$350,000,000

	 	Total of the Commitments
	 	

3

SCHEDULE I

UGI UTILITIES, INC.

FIVE YEAR CREDIT AGREEMENT

APPLICABLE LENDING OFFICES

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender
	 	Domestic Lending Office
	 	Eurodollar Lending Office

	 
	 	 	 	 	 	 	 	 
	 
	 	Two Penns Way
	 	Two Penns Way

	 
	 	New Castle, DE  19720
	 	New Castle, DE  19720

	 
	 	Attn:  Loan Administration
	 	Attn:  Loan Administration

	 
	 	Tel:  302 894-6037
	 	Tel:  302 894-6037

	Citibank, N.A.
	 	Fax:  212 994-0961
	 	Fax:  212 994-0961

	 
	 	 	 	 	 	 	 	 
	 
	 	525 William Penn Place	 	525 William Penn Place
	 
	 	Pittsburgh, PA  15219
	 	Pittsburgh, PA  15219

	 
	 	Attn:  Carlyn Simmons
	 	Attn:  Carlyn Simmons

	 
	 	Tel:  412 867-4046
	 	Tel:  412 867-4046

	Citizens Bank of Pennsylvania
	 	Fax:  412 867-2619
	 	Fax:  412 867-2619

	 
	 	 	 	 	 	 	 	 
	 
	 	One Madison Avenue
	 	One Madison Avenue

	 
	 	New York, NY  10010
	 	New York, NY  10010

	 
	 	Attn:  Ed Markowski
	 	Attn:  Ed Markowski

	 
	 	Tel:  212 538-3380
	 	Tel:  212 538-3380

	Credit Suisse, Cayman Islands Branch
	 	Fax:  212 538-6851
	 	Fax:  212 538-6851

	 
	 	 	 	 	 	 	 	 
	 
	 	60 Wall Street	 	60 Wall Street
	 
	 	New York, NY 10005
	 	New York, NY 10005

	 
	 	Attn:  Joe Cusmai
	 	Attn:  Joe Cusmai

	 
	 	Tel:  201 593-2202
	 	Tel:  201 593-2202

	Deutsche Bank AG New York Branch
	 	Fax:  201 596-2313
	 	Fax:  201 596-2313

	 
	 	 	 	 	 	 	 	 
	 
	 	10 S. Dearborn	 	10 S. Dearborn
	 
	 	Chicago, IL  60603
	 	Chicago, IL  60603

	 
	 	Attn:  Shawuana Simmons
	 	Attn:  Shawuana Simmons

	 
	 	Tel:  312 385-7073
	 	Tel:  312 385-7073

	JPMorgan Chase Bank, N.A.
	 	Fax:  312 385-7096
	 	Fax:  312 385-7096

	 
	 	 	 	 	 	 	 	 
	 
	 	One Mellon Center
	 	One Mellon Center

	 
	 	Pittsburgh, PA  15258-0001
	 	Pittsburgh, PA  15258-0001

	 
	 	Attn:  Charlotte Adams
	 	Attn:  Charlotte Adams

	 
	 	Tel:  412 234-1869
	 	Tel:  412 234-1869

	Mellon Bank, N.A.
	 	Fax:  412 209-6131
	 	Fax:  412 209-6131

	 
	 	 	 	 	 	 	 	 
	 
	 	1600 Market Street	 	1600 Market Street
	 
	 	Philadelphia, PA  19103
	 	Philadelphia, PA  19103

	 
	 	Attn:  Kristen Miller
	 	Attn:  Kristen Miller

	 
	 	Tel:  412 768-5876
	 	Tel:  412 768-5876

	PNC Bank, National Association
	 	Fax:  412 768-4586
	 	Fax:  412 768-4586

	 
	 	 	 	 	 	 	 	 
	 
	 	301 S. College St.	 	301 S. College St.
	 
	 	Charlotte, NC  28288
	 	Charlotte, NC  28288

	 
	 	Attn:  Taylor Ahlstrom
	 	Attn:  Taylor Ahlstrom

	 
	 	Tel:  704 715-2991
	 	Tel:  704 715-2991

	Wachovia Bank, National Association
	 	Fax:  704 715-0091
	 	Fax:  704 715-0091

	 
	 	 	 	 	 	 	 	 

4

SCHEDULE 3.01(h)

UGI UTILITIES, INC.

FIVE YEAR CREDIT AGREEMENT

BILATERAL CREDIT FACILITIES

	 	1.	 	Revolving Loan Agreement dated as of August 6, 2003 between UGI Utilities, Inc. and
Citibank, N.A.

	 	2.	 	Revolving Loan Agreement dated as of August 6, 2003 between UGI Utilities, Inc. and
Credit Suisse First Boston (acting through its Cayman Islands Branch)

	 	3.	 	Amended and Restated Revolving Credit Loan Agreement dated as of September 19, 2002
between UGI Utilities, Inc. and JPMorgan Chase Bank (formerly known as The Chase Manhattan
Bank)

	 	4.	 	Amended and Restated Revolving Loan Agreement dated as of September 19, 2002 between
UGI Utilities, Inc. and Mellon Bank, N.A.

	 	5.	 	Amended and Restated Revolving Loan Agreement dated as of September 19, 2002 between
UGI Utilities, Inc. and Wachovia Bank, National Association

5

SCHEDULE 5.02(a)

UGI UTILITIES, INC.

FIVE YEAR CREDIT AGREEMENT

EXISTING LIENS

None.

6

EXHIBIT A-1 — FORM OF

REVOLVING CREDIT

PROMISSORY NOTE

U.S.$     Dated:      , 200_

FOR VALUE RECEIVED, the undersigned, UGI UTILITIES, INC., a Pennsylvania corporation (the
"Borrower”), HEREBY PROMISES TO PAY to the order of      (the
"Lender”) for the account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below) the principal sum of U.S.$[amount of the
Lender’s Commitment in figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the Credit Agreement dated as of August 11,
2006 among the Borrower, the Lender and certain other lenders parties thereto, Wachovia Bank,
National Association, as syndication agent, and Citibank, N.A. as Agent for the Lender and such
other lenders (as amended or modified from time to time, the “Credit Agreement”; the terms
defined therein being used herein as therein defined) outstanding on the Termination Date.

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

Both principal and interest are payable in lawful money of the United States of America to
Citibank, as Agent, at 388 Greenwich Street, New York, New York 10013, in same day funds. Each
Revolving Credit Advance owing to the Lender by the Borrower pursuant to the Credit Agreement, and
all payments made on account of principal thereof, shall be recorded by the Lender and, prior to
any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note.

This Promissory Note is one of the Revolving Credit Notes referred to in, and is entitled to
the benefits of, the Credit Agreement. The Credit Agreement, among other things, (i) provides for
the making of Revolving Credit Advances by the Lender to the Borrower from time to time in an
aggregate amount not to exceed at any time outstanding the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Revolving Credit Advance being
evidenced by this Promissory Note and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on account of principal
hereof prior to the maturity hereof upon the terms and conditions therein specified.

UGI UTILITIES, INC.

By      

Title:

7

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	Date

	 	Amount of

Advance
	 	Amount of

Principal Paid

or Prepaid
	 	

Unpaid Principal

Balance
	 	

Notation

Made By
	 

	 	 
	 	 
	 	 
	 	 

8

EXHIBIT A-2 — FORM OF

COMPETITIVE BID

PROMISSORY NOTE

U.S.$     Dated:      , 200_

FOR VALUE RECEIVED, the undersigned, UGI UTILITIES, INC., a Pennsylvania corporation (the
"Borrower”), HEREBY PROMISES TO PAY to the order of      (the
"Lender”) for the account of its Applicable Lending Office (as defined in the Credit
Agreement dated as of August 11, 2006 among the Borrower, the Lender and certain other lenders
parties thereto, Wachovia Bank, National Association, as syndication agent, and Citibank, N.A., as
Agent for the Lender and such other lenders (as amended or modified from time to time, the
"Credit Agreement”; the terms defined therein being used herein as therein defined)), on
     , 200_, the principal amount of U.S.$     .

The Borrower promises to pay interest on the unpaid principal amount hereof from the date
hereof until such principal amount is paid in full, at the interest rate and payable on the
interest payment date or dates provided below:

Interest Rate:      % per annum (calculated on the basis of a year of      days for the
actual number of days elapsed).

Both principal and interest are payable in lawful money of the United States of America to
Citibank, as agent, for the account of the Lender at the office of Citibank, at
     in same day funds.

This Promissory Note is one of the Competitive Bid Notes referred to in, and is entitled to
the benefits of, the Credit Agreement. The Credit Agreement, among other things, contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events.

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

This Promissory Note shall be governed by, and construed in accordance with, the laws of the
State of New York.

UGI UTILITIES, INC.

By      

Title:

9

EXHIBIT B-1 — FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent

for the Lenders parties

to the Credit Agreement

referred to below

Two Penns Way

New Castle, Delaware 19720

[Date]

Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

The undersigned, UGI Utilities, Inc., refers to the Credit Agreement, dated as of August 11,
2006 (as amended or modified from time to time, the “Credit Agreement”, the terms defined
therein being used herein as therein defined), among the undersigned, certain Lenders parties
thereto, Wachovia Bank, National Association, as syndication agent, and Citibank, N.A., as Agent
for said Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit
Agreement that the undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to such Revolving
Credit Borrowing (the “Proposed Revolving Credit Borrowing”) as required by Section 2.02(a)
of the Credit Agreement:

(i) The Business Day of the Proposed Revolving Credit Borrowing is      ,
200_.

(ii) The Type of Advances comprising the Proposed Revolving Credit Borrowing is [Base
Rate Advances] [Eurodollar Rate Advances].

(iii) The aggregate amount of the Proposed Revolving Credit Borrowing is
$     .

[(iv) The initial Interest Period for each Eurodollar Rate Advance made as part of the
Proposed Revolving Credit Borrowing is [two weeks] [     month[s]].]

The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Revolving Credit Borrowing:

(A) the representations and warranties contained in Section 4.01 of the Credit
Agreement are correct, before and after giving effect to the Proposed Revolving Credit
Borrowing and to the application of the proceeds therefrom, as though made on and as of such
date, except to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties were true and correct as of
such earlier date; and

10

(B) no event has occurred and is continuing, or would result from such Proposed
Revolving Credit Borrowing or from the application of the proceeds therefrom, that
constitutes a Default.

Very truly yours,

UGI UTILITIES, INC.

By      

Title:.

11

EXHIBIT B-2 — FORM OF NOTICE OF

COMPETITIVE BID BORROWING

Citibank, N.A., as Agent

for the Lenders parties

to the Credit Agreement

referred to below

Two Penns Way

New Castle, Delaware 19720

[Date]

Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

The undersigned, UGI Utilities, Inc., refers to the Credit Agreement, dated as of August 11,
2006 (as amended or modified from time to time, the “Credit Agreement”, the terms defined
therein being used herein as therein defined), among the undersigned, certain Lenders parties
thereto, Wachovia Bank, National Association, as syndication agent, and Citibank, N.A., as Agent
for said Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.03 of the Credit
Agreement that the undersigned hereby requests a Competitive Bid Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which such Competitive Bid Borrowing (the
"Proposed Competitive Bid Borrowing”) is requested to be made:

	 	 	 	 	 	 	 	 	 
	(A)
	 	Date of Competitive Bid Borrowing
	 	 	—	 
	(B)
	 	Amount of Competitive Bid Borrowing
	 	 	—	 
	(C)
	 	[Maturity Date] [Interest Period]	 	 	—	 
	(D)
	 	Interest Rate Basis
	 	 	—	 
	(E)
	 	Interest Payment Date(s)
	 	 	—	 
	(F)
	 	 	—	 	 	 	—	 

The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Competitive Bid Borrowing:

(a) the representations and warranties contained in Section 4.01 of the Credit
Agreement are correct, before and after giving effect to the Proposed Competitive Bid
Borrowing and to the application of the proceeds therefrom, as though made on and as of such
date, except to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties were true and correct as of
such earlier date;

(b) no event has occurred and is continuing, or would result from the Proposed
Competitive Bid Borrowing or from the application of the proceeds therefrom, that
constitutes a Default; and

(c) the aggregate amount of the Proposed Competitive Bid Borrowing and all other
Borrowings to be made on the same day under the Credit Agreement is within the aggregate
amount of the unused Commitments of the Lenders.

12

The undersigned hereby confirms that the Proposed Competitive Bid Borrowing is to be made
available to it in accordance with Section 2.03(a)(v) of the Credit Agreement.

Very truly yours,

UGI UTILITIES, INC.

By      

Title:

13

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

Reference is made to the Credit Agreement dated as of August 11, 2006 (as amended or modified
from time to time, the “Credit Agreement”) among UGI Utilities, Inc., a Pennsylvania
corporation (the “Borrower”), the Lenders (as defined in the Credit Agreement) Wachovia
Bank, National Association, as syndication agent, and Citibank, N.A., as agent for the Lenders (the
"Agent”). Terms defined in the Credit Agreement are used herein with the same meaning.

The “Assignor” and the “Assignee” referred to on Schedule I hereto agree as follows:

1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the Credit Agreement as of the date hereof (other than in respect of Competitive Bid Advances and
Competitive Bid Notes) equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement (other than in respect of Competitive
Bid Advances and Competitive Bid Notes). After giving effect to such sale and assignment, the
Assignee’s Commitment and the amount of the Revolving Credit Advances owing to the Assignee will be
as set forth on Schedule 1 hereto.

2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto; and (iv) attaches
the Revolving Credit Note[, if any] held by the Assignor [and requests that the Agent exchange such
Revolving Credit Note for a new Revolving Credit Note payable to the order of [the Assignee in an
amount equal to the Commitment assumed by the Assignee pursuant hereto or new Revolving Credit
Notes payable to the order of the Assignee in an amount equal to the Commitment assumed by the
Assignee pursuant hereto and] the Assignor in an amount equal to the Commitment retained by the
Assignor under the Credit Agreement, [respectively,] as specified on Schedule 1 hereto].

3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with copies of the financial statements referred to in Section 4.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor 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 decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Credit Agreement as are delegated to the Agent by the
terms thereof, together with such powers and discretion as are reasonably incidental thereto;
(v) agrees that it will perform in accordance with their terms all of the obligations that by the
terms of the Credit Agreement are required to be performed by it as a Lender; and (vi) attaches any
U.S. Internal Revenue Service forms required under Section 2.14 of the Credit Agreement.

4. Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

5. Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the
Agent shall make all payments under the Credit Agreement and the Revolving Credit Notes in respect
of the interest assigned hereby (including, without limitation, all payments of principal, interest
and facility fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement and the Revolving Credit Notes for
periods prior to the Effective Date directly between themselves.

7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the
laws of the State of New York.

8. This Assignment and Acceptance may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

14

Schedule 1

to

Assignment and Acceptance

Percentage interest assigned:      %

Assignee’s Commitment: $     

Aggregate outstanding principal amount of Revolving Credit Advances assigned: $     

Principal amount of Revolving Credit Note payable to Assignee: $     

Principal amount of Revolving Credit Note payable to Assignor: $     

Effective Date*:      , 200_

[NAME OF ASSIGNOR], as Assignor

By      

Title:

Dated:      , 200_

[NAME OF ASSIGNEE], as Assignee

By      

Title:

Dated:      , 200_

Domestic Lending Office:

[Address]

Eurodollar Lending Office:

[Address]

*This date should be no earlier than five
Business Days after the delivery of this Assignment and Acceptance to the
Agent.

15

	 	 	 
	Accepted [and Approved]** this

     day of      , 200_

CITIBANK, N.A., as Agent

By

	 	

	 

	 	

	Title:

	 	

	[Approved this      day

of      , 200_

UGI UTILITIES, INC.

By

	 	

]*
	 

	 	

 Title:

16

EXHIBIT D — FORM OF

OPINION OF COUNSEL

FOR THE BORROWER

August      , 2006

	 	 	Citibank, N.A., as Agent under

the Credit Agreement referred to herein

and the Lenders parties thereto

[Address]

Re: Credit Agreement dated as of August  , 2006 of UGI Utilities, Inc.

Ladies and Gentlemen:

We have acted as counsel for UGI Utilities, Inc., a Pennsylvania corporation (the
“Company”), in connection with the Credit Agreement, dated as of August      , 2006 (the
“Credit Agreement”), among the Company, the lenders referred to therein (the
“Lenders”), Wachovia Bank, National Association, as syndication agent, and Citibank, N.A.,
as Agent for the Lenders (the “Agent”). Terms defined in the Credit Agreement are used as
therein defined, unless otherwise defined herein. This opinion letter is being delivered to you
pursuant to Section 3.01(g)(iv) of the Credit Agreement.

In connection with this opinion letter, we have examined originals, or copies certified or
otherwise identified to our satisfaction, of the Articles of Incorporation and Bylaws of the
Company and such other documents and records, and other instruments as we have deemed appropriate
for purposes of the opinions set forth herein, including the following documents (the documents
referred to in clauses (a) and (b) below are referred to herein as the “Credit
Documents”):

(a) the Credit Agreement;

(b) the Revolving Credit Note in the amount of $32,500,000, executed by the Company on
the date hereof in favor of PNC Bank, National Association;

(c) the Revolving Credit Note in the amount of $32,500,000, executed by the Company on
the date hereof in favor of Deutsche Bank AG New York Branch;

(d) the Revolving Credit Note in the amount of $50,000,000, executed by the Company on
the date hereof in favor of Citizens Bank of Pennsylvania;

(e) copies of the agreements listed on Exhibit A hereto (the
“Contracts”);

(f) the Certificate of the Secretary, dated August      , 2006, executed by the Company
attaching and certifying (i) incumbencies of the officers of the Company; and (ii)
resolutions of the board of directors of the Company with respect to the transactions
referred to herein; and

(g) a certificate of the Secretary of the Commonwealth of Pennsylvania, dated July 18,
2006, attesting to the present subsistence of the Company as attached on Exhibit B
hereto (the “Good Standing Certificate”).

We have assumed the genuineness of all signatures, the legal capacity of natural persons, the
authenticity of the documents submitted to us as originals, the conformity to the original
documents of all documents submitted to us as certified, facsimile or photostatic copies, and the
authenticity of the originals of all documents submitted to us as copies. We have also assumed that
the Credit Documents constitute valid and binding obligations of each party thereto other than the
Company.

As to any facts that are material to the opinions hereinafter expressed that we did not
independently establish or verify, we have relied without investigation upon the representations of
the Company contained in the Credit Documents and upon certificates of officers of the Company.

In rendering the opinions set forth herein, whenever a statement or opinion set forth therein is
qualified by “to our knowledge,” “known to us” or by words of similar import, it is intended to
indicate that, during the course of our representation of the Company in the subject transaction,
no information has come to the attention of those lawyers in our firm who have rendered legal
services in connection with such transaction that gives us actual knowledge of the inaccuracy of
such statement or opinion. We have not undertaken any independent investigation to determine the
accuracy of facts material to any such statement or opinion, and no inference as to such statement
or opinion should be drawn from the fact of our representation of the Company.

We have relied upon a certificate of an officer of the Company dated the date hereof, certifying
that the items listed in such certificate are (i) all of the indentures, loan or credit agreements,
leases, guarantees, mortgages, security agreements, bonds, notes, other agreements or instruments
(set forth on Exhibit A hereto), and (ii) all of the judicial or administrative orders,
writs, judgments, awards, injunctions and decrees (the “Company Orders”), which as to any
matter in (i) or (ii) affect or purport to affect the Company’s right to borrow money under the
Credit Agreement or the Company’s obligations under the Credit Agreement.

In rendering this opinion, we have assumed that (i) each of the parties to the Credit Documents
(other than the Company) is validly existing and in good standing under the laws of its
jurisdiction of organization and has the full power and legal right to execute and deliver each of
the Credit Documents to be executed by it and to perform the provisions of the Credit Documents to
be performed by it; (ii) each of the Credit Documents has been duly authorized, executed and
delivered by each party thereto (other than the Company), and constitutes the legal, valid and
binding obligation of each such party (other than the Company), enforceable against it in
accordance with the terms thereof; and (iii) the execution, delivery and performance by the parties
(other than the Company) of each of the Credit Documents to which they are a party, do not
contravene (A) their respective charter, bylaws or other applicable constituent documents or (B)
any applicable law.

Based upon and subject to the foregoing, and to the limitations and qualifications described below,
we are of the opinion that:

1. The Company is a corporation presently subsisting under the laws of the Commonwealth of
Pennsylvania.

2. The Company has the corporate power and authority to enter into and perform the Credit
Documents, has taken all necessary corporate action to authorize the execution, delivery and
performance (except with respect to any Commitment Increase) of such Credit Documents and has duly
executed and delivered such Credit Documents.

3. Each Credit Document is the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms.

4. The execution and delivery by the Company of the Credit Documents do not, and the
performance by the Company of its respective obligations thereunder will not, (i) result in a
violation of the Articles of Incorporation or Bylaws of the Company, (ii) result in a breach or
default under any Contract or (iii) result in a violation of any Company Order.

5. The execution and delivery by the Company of the Credit Documents do not, and the
performance by the Company of its obligations thereunder will not, require any approval from or
filing with any governmental authority of the United States, the Commonwealth of Pennsylvania or
the State of New York other than in connection with the extension of the Termination Date
contemplated by Section 2.19 of the Credit Agreement (“Termination Date Extension”) the
registration of a Securities Certificate in accordance with Chapter 19 of the Pennsylvania Public
Utility Code (“PPUC”) authorizing the Company’s incurrence of indebtedness under the Credit
Agreement.

6. The execution and delivery by the Company of the Credit Documents do not, and the
performance by the Company of its obligations thereunder will not, result in any violation of any
federal law of the United States, any law of the Commonwealth of Pennsylvania, any law of the State
of New York or any regulation thereunder, except that prior to the effectiveness of the Termination
Date Extension the Company must register a Securities Certificate in accordance with Chapter 19 of
the PPUC.

7. The extension of credit made on the date hereof and the use of the proceeds thereof in
accordance with the provisions of the Credit Agreement do not violate the provisions of Regulation
X of the Board of Governors of the Federal Reserve System.

8. To our knowledge, there are no pending lawsuits or other proceedings against the Company
before any court arbitrator or governmental agency or authority that challenge the legality,
validity or enforceability of the Credit Documents.

The opinions expressed above are subject to the following limitations, exceptions,
qualifications and assumptions:

A. The opinions expressed herein are subject to bankruptcy, insolvency, fraudulent transfer
and other similar laws affecting the rights and remedies of creditors generally and general
principles of equity.

B. We express no opinion with respect to the enforceability of indemnification provisions, or
of release or exculpation provisions, contained in the Credit Documents to the extent that
enforcement thereof is contrary to public policy regarding the indemnification against or release
or exculpation of criminal violations, intentional harm or violations of securities laws.

C. The opinions expressed in this opinion letter are limited to the laws of the Commonwealth
of Pennsylvania, the laws of the State of New York and the Federal laws of the United States of
America, and we express no opinion with respect to the laws of any other state or jurisdiction.

D. For purposes of our opinion in paragraph 1 hereof as to the valid existence of the
Company, we have relied solely upon good standing or similar certificates issued by the appropriate
authorities in the subject jurisdictions.

E. For purposes of the opinion in paragraph 6, we have considered only such laws and
regulations that in our experience are typically applicable to a transaction of the nature
contemplated by the Credit Documents.

F. Certain waivers by the Company in the Credit Documents may relate to matters that cannot,
as a matter of law, be effectively waived.

G. For purposes of the opinion in paragraph 4, where any Contract is silent as to governing
law or states that it is governed by laws of a state other than the laws New York or Pennsylvania,
we have not made any investigation of the laws of any other state but have merely assumed that they
would be interpreted in accordance with their plain meaning.

H. We express no opinion as to:

(i) the enforceability of any provision of the Credit Documents insofar as it provides that
any Person purchasing a participation from a Lender or other Person may exercise set-off or similar
rights with respect to such participation or that a Lender or other Person may exercise set-off or
similar rights other than in accordance with applicable law;

(ii) the enforceability of any provision of the Credit Documents permitting modification
thereof only by means of an agreement in writing signed by the parties thereto;

(iii) the covenants in the Contracts or the Credit Documents that contain financial ratios and
other similar financial restrictions; or

(iv) whether a federal or state court located outside the State of New York would give effect
to the choice of law provided for in the Credit Documents.

This opinion letter is effective only as of the date hereof. We do not assume responsibility for
updating this opinion letter as of any date subsequent to its date, and we assume no responsibility
for advising you of any changes with respect to any matters described in this opinion letter that
may occur subsequent to the date of this opinion letter or from the discovery, subsequent to the
date of this opinion letter, of information not previously known to us pertaining to the events
occurring prior to such date.

This opinion letter is furnished by us solely for the benefit of the Agent and the Lenders and
their respective successors and permitted assigns and participants pursuant to the Credit
Agreement, and this opinion letter may not be relied upon by such parties for any other purpose or
by any other person or entity for any purpose whatsoever. This opinion letter is not to be quoted
in whole or in part or otherwise referred to or used or furnished to any other person, except as
may be required by any governmental authority or pursuant to legal process, without our express
written consent.

Very truly yours, 

17

EXECUTION COPY

U.S. $350,000,000

CREDIT AGREEMENT

Dated as of August 11, 2006

Among

UGI UTILITIES, INC.

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN

as Initial Lenders

and

WACHOVIA BANK, NATIONAL ASSOCIATION

as Syndication Agent

and

CITIBANK, N.A.

as Administrative Agent

CITIGROUP GLOBAL MARKETS INC.

and

WACHOVIA CAPITAL MARKETS, LLC

as Joint Lead Arrangers and Joint

Bookrunners

18

TABLE OF CONTENTS

	 	 	ARTICLE I	 

	 	 	 	SECTION 1.01. Certain Defined Terms	 

	 	 	 	SECTION 1.02. Computation of Time Periods	 

	 	 	 	SECTION 1.03. Accounting Terms	 

	 	 	ARTICLE II	 

	 	 	 	SECTION 2.01. The Revolving Credit Advances	 

	 	 	 	SECTION 2.02. Making the Revolving Credit Advances	 

	 	 	 	SECTION 2.03. The Competitive Bid Advances	 

	 	 	 	SECTION 2.04. Fees	 

	 	 	 	SECTION 2.05. Optional Termination or Reduction of the Commitments	 

	 	 	 	SECTION 2.06. Repayment of Revolving Credit Advances	 

	 	 	 	SECTION 2.07. Interest on Revolving Credit Advances	 

	 	 	 	SECTION 2.08. Interest Rate Determination	 

	 	 	 	SECTION 2.09. Optional Conversion of Revolving Credit Advances	 

	 	 	 	SECTION 2.10. Prepayments of Revolving Credit Advances	 

	 	 	 	SECTION 2.11. Increased Costs	 

	 	 	 	SECTION 2.12. Illegality	 

	 	 	 	SECTION 2.13. Payments and Computations	 

	 	 	 	SECTION 2.14. Taxes	 

	 	 	 	SECTION 2.15. Sharing of Payments, Etc.	 

	 	 	 	SECTION 2.16. Evidence of Debt	 

	 	 	 	SECTION 2.17. Use of Proceeds	 

	 	 	 	SECTION 2.18. Increase in the Aggregate Commitments	 

	 	 	 	SECTION 2.19. Extension of Termination Date	 

	 	 	ARTICLE III	 

	 	 	 	SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03	 

	 	 	 	SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing
and Commitment Increase.	 

	 	 	 	SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing	 

	 	 	 	SECTION 3.04. Determinations Under Section 3.01	 

	 	 	ARTICLE IV	 

	 	 	 	SECTION 4.01. Representations and Warranties of the Borrower	 

	 	 	ARTICLE V	 

	 	 	 	SECTION 5.01. Affirmative Covenants	 

	 	 	 	SECTION 5.02. Negative Covenants	 

	 	 	 	SECTION 5.03. Financial Covenant	 

	 	 	ARTICLE VI	 

	 	 	 	SECTION 6.01. Events of Default	 

	 	 	ARTICLE VII	 

	 	 	 	SECTION 7.01. Authorization and Action	 

	 	 	 	SECTION 7.02. Agent’s Reliance, Etc.	 

	 	 	 	SECTION 7.03. Citibank and Affiliates	 

	 	 	 	SECTION 7.04. Lender Credit Decision	 

	 	 	 	SECTION 7.05. Indemnification	 

	 	 	 	SECTION 7.06. Successor Agent	 

	 	 	 	SECTION 7.07. Other Agents.	 

	 	 	ARTICLE VIII	 

	 	 	 	SECTION 8.01. Amendments, Etc.	 

	 	 	 	SECTION 8.02. Notices, Etc.	 

	 	 	 	SECTION 8.03. No Waiver; Remedies	 

	 	 	 	SECTION 8.04. Costs and Expenses	 

	 	 	 	SECTION 8.05. Right of Set-off	 

	 	 	 	SECTION 8.06. Binding Effect	 

	 	 	 	SECTION 8.07. Assignments and Participations	 

	 	 	 	SECTION 8.08. Confidentiality	 

	 	 	 	SECTION 8.09. Governing Law	 

	 	 	 	SECTION 8.10. Execution in Counterparts	 

	 	 	 	SECTION 8.11. Jurisdiction, Etc.	 

	 	 	 	SECTION 8.12. Patriot Act Notice	 

	 	 	 	SECTION 8.13. Waiver of Jury Trial	 

**Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) of the definition of “Eligible
Assignee”.

*Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) of the definition of “Eligible
Assignee”.

19

	 	 	 	 	 
	Schedules

	 	

	 	

	 

	 	

	 	

	 
	 	 	 	 
	Schedule I — List of Applicable Lending Offices
	 	 
	 
	 	 	 	 
	Schedule 3.01(h) – Bilateral Credit Facilities
	 	 
	 
	 	 	 	 
	Schedule 5.02(a) — Existing Liens
	 	 
	 
	 	 	 	 
	Exhibits

	 	

	 	

	 

	 	

	 	

	Exhibit A-1

Exhibit A-2

Exhibit B-1

Exhibit B-2

Exhibit C

Exhibit D

	 	-

-

-

-

-

-
	 	Form of Revolving Credit Note

Form of Competitive Bid Note

Form of Notice of Revolving Credit Borrowing

Form of Notice of Competitive Bid Borrowing

Form of Assignment and Acceptance

Form of Opinion of Counsel for the Borrower
	 
	 	 	 	 

20EX-10.1

EXHIBIT 10.1

COMMITMENT AND ACCEPTANCE

This Commitment and Acceptance (this “Commitment and Acceptance”) dated as of August 16, 2006,
is entered into among the parties listed on the signature pages hereof. Capitalized terms used
herein and not otherwise defined herein shall have the meanings attributed to them in the Credit
Agreement (as defined below).

PRELIMINARY STATEMENTS

Reference is made to that certain Credit Agreement dated as of December 7, 2005, by and among
NVR, Inc., a Delaware corporation (the “Company”), JPMorgan Chase Bank, N.A., as Administrative
Agent, and the Lenders that are parties thereto (as the same may from time to time be amended,
modified, supplemented or restated, in whole or in part and without limitation as to amount, terms,
conditions or covenants, the “Credit Agreement”).

Pursuant to Section 2.14 of the Credit Agreement, the Company has requested an increase in the
Aggregate Commitment from $445,000,000 to $600,000,000. Such increase in the Aggregate Commitment
is to become effective on August 16, 2006 (the “Increase Date”). In connection with such requested
increase in the Aggregate Commitment, Borrower, Administrative Agent and the lenders identified on
Schedule I hereto (each, an “Accepting Lender”) hereby agree as follows:

1. ACCEPTING LENDERS’ COMMITMENT. Effective as of the Increase Date, (a) each of the
Accepting Lenders that was not heretofore party to the Credit Agreement (each, a “New Accepting
Lender”) shall become a party to the Credit Agreement as a Lender, shall have all of the rights and
obligations of a Lender thereunder, shall agree to be bound by the terms and provisions thereof and
shall thereupon have a Commitment under and for purposes of the Credit Agreement in the amount set
forth in Schedule I hereto as its “New Commitment” and (b) the Commitment of each Accepting Lender
that was heretofore a party to the Credit Agreement shall be increased from the amount set forth on
Schedule I as its “Original Commitment” to the amount set forth on Schedule I as its “New
Commitment.”

2. REPRESENTATIONS AND AGREEMENTS OF ACCEPTING LENDERS. Each Accepting Lender
represents and warrants that it has full power and authority, and has taken all action necessary,
to execute and deliver this Commitment and Acceptance and to consummate the transactions
contemplated hereby and (in the case of each New Accepting Lender) to become a Lender under the
Credit Agreement. Each New Accepting Lender (a) represents and warrants that (i) it satisfies the
requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in
order to become a Lender, (ii) from and after the Increase Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and shall have the obligations of a
Lender thereunder, (iii) it has received a copy of the Credit Agreement, together with copies of
the most recent financial statements delivered pursuant to Section 6.04(a) and (b)
thereof, as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Commitment and Acceptance on the basis
of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (iv) if it is a Foreign Lender, it has delivered any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Accepting Lender; and (b) agrees that (i) it will, independently and
without reliance on the Administrative 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 decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

3. REPRESENTATION OF BORROWER. The Borrower hereby represents and warrants that, as
of the date hereof and as of the Increase Date, (a) no event or condition shall have occurred and
then be continuing which constitutes a Default or Unmatured Default and (b) the representations and
warranties of the Borrower contained in the Credit Agreement are true and correct in all material
respects (except to the extent any such representation or warranty is stated to relate solely to an
earlier date).

4. GOVERNING LAW. This Commitment and Acceptance shall be governed by the internal
law, and not the law of conflicts, of the State of New York.

1

IN WITNESS WHEREOF, the parties hereto have executed this Commitment and Acceptance by their
duly authorized officers as of the date first above written.

	 	 	 
	BORROWER:

	 	

	NVR, INC.

By:

Title:

	 	

/s/ Dennis M. Seremet

Vice President and Chief Financial Officer

ADMINISTRATIVE AGENT:

JPMORGAN CHASE BANK, N.A., as

Administrative Agent

	 	 	 
	By:

Title:

	 	/s/ Michael O’Keefe

Associate

SIGNATURES OF ACCEPTING LENDERS FOLLOW

2

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	JPMORGAN CHASE BANK, N.A.

	 
	 	 
	By:

Title:

	 	/s/ Michael O’Keefe

Associate
	 
	 	 

3

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	WACHOVIA BANK, N.A.

By:

Title:

	 	

/s/ Margaret J. Dunsmore

Vice President
	 
	 	 

4

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	MIZUHO CORPORATE BANK, LTD.

	 
	 	 
	By:

Title:

	 	/s/ Raymond Ventura

Deputy General Manager
	 
	 	 

5

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	U.S. BANK NATIONAL ASSOCIATION

	 
	 	 
	By:

Title:

	 	/s/ A. Jeffrey Jacobson

Vice President
	 
	 	 

6

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	RBC CENTURA BANK

By:

Title:

	 	

/s/ Greg Leadholm

Vice President
	 
	 	 

7

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	BANK OF AMERICA, N.A.

By:

Title:

	 	

/s/ Stephen B. Carlson

Vice President
	 
	 	 

8

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	CREDIT SUISSE, CAYMAN ISLANDS BRANCH

	 
	 	 
	By:

Title:

By:

Title:

	 	/s/ Cassandra Droogan

Vice President

/s/ Rianka Mohan

Associate
	 
	 	 

9

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	COMPASS BANK

By:

Title:

	 	

/s/ Johanna Duke Paley

Senior Vice President
	 
	 	 

10

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	GUARANTY BANK

By:

Title:

	 	

/s/ Amy Satsky

Vice President
	 
	 	 

11

SIGNATURE PAGE TO COMMITMENT AND ACCEPTANCE DATED AUGUST 16, 2006 WITH NVR, INC.

	 	 	 
	NATIONAL CITY BANK

By:

Title:

	 	

/s/ Jerry W. Johnston

Executive Vice President
	 
	 	 

12

SCHEDULE I

COMMITMENTS

	 	 	 	 	 	 	 	 	 
	 	 	Original	 	New
	Accepting Lender	 	Commitment	 	Commitment
	JPMorgan Chase Bank, N.A.
	 	$	50,000,000	 	 	$	55,000,000	 
	Wachovia Bank, N.A.
	 	 	45,000,000	 	 	 	55,000,000	 
	Mizuho Corporate Bank, Ltd.
	 	 	35,000,000	 	 	 	55,000,000	 
	U.S. Bank National Association
	 	 	45,000,000	 	 	 	50,000,000	 
	RBC Centura Bank
	 	 	-0-	 	 	 	35,000,000	 
	Bank of America, N.A.
	 	 	-0-	 	 	 	25,000,000	 
	Credit Suisse, Cayman Islands Branch
	 	 	-0-	 	 	 	25,000,000	 
	Compass Bank
	 	 	-0-	 	 	 	15,000,000	 
	Guaranty Bank
	 	 	-0-	 	 	 	10,000,000	 
	National City Bank
	 	 	-0-	 	 	 	5,000,000	 

CH1 3587329v.1

13

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