Document:

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                                                                EXHIBIT 10.1

                        MICHIGAN HERITAGE BANCORP, INC.

                  1997 NONEMPLOYEE DIRECTOR STOCK OPTION PLAN

                               -----------------

                          Effective: January 15, 1997
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                        MICHIGAN HERITAGE BANCORP, INC.

                  1997 NONEMPLOYEE DIRECTOR STOCK OPTION PLAN

        Subject to shareholder approval, effective January 15, 1997, the plan
described herein is hereby adopted as the Michigan Heritage Bancorp, Inc. 1996
Nonemployee Director Stock Option Plan (the "Plan").

                             I.  GENERAL PROVISIONS

        1.1     Purpose.  The purpose of this Plan is to promote the best
interests of the Corporation and its shareholders by attracting and motivating
highly qualified individuals to serve as Directors and to encourage such
Directors to acquire an ownership interest in the Corporation, thus
identifying their interests with those of shareholders.

        1.2     Definitions.  As used in this Plan, the following terms have
the meaning described below:

                (a)     "Agreement" means the written agreement that sets forth
the terms of a Participant's Option.

                (b)     "Board" means the Board of Directors of the Corporation.

                (c)     "Change in Control" means the occurrence of any of the
following events:

                        (i)     If any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act), or group of persons acting in
concert, other than the Corporation, a Subsidiary or an employee benefit plan
or employee benefit plan trust maintained by the Corporation or a Subsidiary,
becomes the "beneficial owner" (as such term is defined in Rule 13d-3 of the
Exchange Act, except that a person also shall be deemed the beneficial owner of
all securities which such person may have a right to acquire, whether or not
such right is presently exercisable), directly or indirectly, of securities of
the Corporation representing twenty (20%) or more of the combined voting power
of the Corporation's then outstanding securities ordinarily having the right to
vote in the election of directors; or

                        (ii)   A liquidation or dissolution of the Corporation,
sale of substantially all of the assets of the Corporation, or a merger,
consolidation or combination in which the Corporation is not the survivor; or

                        (iii)  The addition of new members to the Board within
any consecutive twenty-four (24) month period, which members constitute a
majority of the Board, unless a majority of the Board, consists of incumbent
members of the Board in office prior to the commencement of such twenty-four
(24) month period, plus new members who were recommended or appointed by a
majority of the incumbent directors in office immediately prior
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to the addition of such new members to the Board.

                (d)     "Code" means the Internal Revenue Code of 1986, as
amended from time to time.

                (e)     "Committee" means the Compensation Committee of the
Corporation, if any, which shall be comprised of two or more disinterested
members of the Board, as defined in Rule 16b-3.

                (f)     "Common Stock" means shares of the Corporation's
authorized Common Stock.

                (g)     "Corporation" means Michigan Heritage Bancorp, Inc., a
Michigan Corporation.

                (h)     "Director" means a member of the Corporation's Board of
Directors.

                (i)     "Disability" means total and permanent disability, as
defined in Section 22(e) of the Code.

                (j)     "Effective Date" means January 15, 1997.

                (k)     "Eligible Director" means a Director who is not an
Employee of the Corporation.

                (l)     "Employee" means an employee of the Corporation or its
Subsidiaries, who has an "employment relationship" with the Corporation or its
Subsidiaries, as defined in Treasury Regulation 1.421-7(h), and the term
"employment" means employment with the Corporation or its subsidiaries.

                (m)     "Exchange Act" means the Securities Exchange Act of
1934, as amended from time to time, and any successor thereto.

                (n)     "Expiration Date" means the date set forth in the
Agreement relating to an Option on which the right to exercise such Option
shall expire, except as otherwise provided in Article III below.  Unless
otherwise provided in the Agreement, the Expiration Date for an Option shall
be the seventh (7th) anniversary of its Grant Date.

                (o)     "Fair Market Value" means, for purposes of determining
the value of Common Stock, the average between the published closing bid and
asked prices of the Common Stock on the NASD OTC Bulletin Board or if the
Common Stock has become listed on The Nasdaq Stock Market or a national
securities exchange, then on The Nasdaq Stock Market or such exchange instead;
or if the Common Stock is not quoted on either the NASD OTC Bulletin

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Board or the Nasdaq Stock Market or any nationally recognized stock exchange, a
value determined by any fair and reasonable means prescribed by the Committee.

                (p)     "Grant Date" means the date on which an Option was
automatically awarded pursuant to Section 2.1.

                (q)     "Initial Offering Price" means the price per share of
Common Stock received by the Company, excluding any underwriters' fees or
commissions in connection with its initial public offering of Common Stock.

                (r)     "Nonemployee Director" means a Director who is not an
Employee of the Company.

                (s)     "Nonqualified Stock Option" means an Option that is not
intended to meet the requirements of Section 422 of the Code.

                (t)     "Option" means a Nonqualified Stock Option to purchase
Common Stock granted under this Plan.

                (u)     "Participant" means each of the Nonemployee Directors
of the Corporation participating in this Plan from time to time.

                (v)     "Plan" means this Michigan Heritage Bancorp, Inc. 1996
Nonemployee Director Stock Option Plan, the terms of which are set forth
herein, and any amendments hereto.

                (w)     "Rule 16b-3" means Rule 16b-3 under the Exchange Act,
as in effect from time to time.

                (x)     "Subsidiary" means a corporation of which more than
fifty percent (50%) of the outstanding voting stock is owned by the
Corporation, either directly or indirectly through one or more other
Subsidiaries.

        1.3     Administration.  To the extent permitted by Rule 16b-3, the
Plan shall be administered by the Committee or another committee appointed by
at least a majority of the Board of Directors of the Corporation.  The
Committee shall interpret the Plan, prescribe, amend, and rescind rules and
regulations relating to the Plan, and make all other determinations necessary
or advisable for its administration.  The decision of the Committee on any
question concerning the interpretation of the Plan or its administration with
respect to any Option granted under the Plan shall be final and binding upon
all Participants.

        1.4     Stock.  The total number of shares of Common Stock available
for grants under the Plan shall not, in the aggregate, exceed 60,000 shares of
Common Stock, as adjusted from time to time in accordance with Article IV.
Shares subject to any unexercised portion of a

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terminated, forfeited, cancelled or expired Option granted hereunder shall be
available for subsequent grants under the Plan.  In the event that an option
granted under the Plan is exercised by the delivery of shares of Common Stock
previously acquired upon the exercise of Options issued under the Plan or
through the retention of options procedure as described in Section 2.6 below,
the shares of Common Stock so delivered to the Corporation or underlying such
retained options shall be available for subsequent grants under this Plan.

                   II. STOCK OPTIONS FOR ELIGIBLE DIRECTORS

         2.1    Automatic Grants of Options to Nonemployee Directors.

                (a)     Eligibility.  All Nonemployee Directors of the
Corporation who have been elected by the shareholders at an Annual Meeting, who
have been appointed by the incorporator, or who have been appointed to fill a
vacancy on the Board, and are serving on the Board at the time an Option is
granted hereunder shall automatically participate hereunder.

                (b)     Initial Options; Subsequent Options.  On February 1,
1997, the Company shall grant to each Participant an option to purchase 12,000
shares of Common Stock at the Initial Offering Price (the "Initial Option").
The Initial Options shall become exercisable at the following times with
respect to the amount of shares listed:

                Exercisability
                Date                    Number of Shares
                --------------          ----------------
                March 1, 1997           6,000 shares
                March 1, 1998           8,000 shares
                March 1, 1999           10,000 shares
                March 1, 2000           12,000 shares

        Nonemployee Directors who are appointed or elected after March 1, 1997,
and who become Participants, shall be granted an option ("Subsequent Option")
on the first day of the month following their appointment or election as a
director for a number of shares which is equal to the amount set forth in the
following table, and is based on the time of their appointment or election in
relation to the next regular annual meeting of shareholders of the Company, as
follows:

        Year of First Annual
        Meeting of Shareholders
        After Appointment or            Number of
        Election                        Options Granted
        -----------------------         ---------------
                1998                    3,000 shares
                1999                    2,000 shares
                2000                    1,000 shares

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        All Subsequent Options shall become exercisable in full 180 days
following their date of grant.  The grant of Initial Options and Subsequent
Options shall be automatic and nondiscretionary.

                (c)     No Discretion.  Notwithstanding any provision in the
Plan to the contrary, the Committee shall have no discretion with respect to
the terms of grants made to a Nonemployee Director pursuant to this Article II,
except to the extent such discretion would not result in the grant or the
Plan failing to qualify for the disinterested Director exemption provided
under Rule 16b-3.

        2.2     Option Agreement.  Each Option granted pursuant to this Article
II shall be evidenced by an Agreement for Nonemployee Directors in accordance
with the terms of the Plan and shall specify, among other things, the exercise
price, the term of the Option, the date or dates on which the Option becomes
exercisable, the number of shares to which the Option relates, and other such
provisions as the Committee shall determine.

        2.3     Option Price.  The purchase price per share of Common Stock for
the Initial Option shall be the Initial Public Offering price per share, which
is deemed to be the Fair Market Value of the Common Stock at such time of grant
or such Options.  The purchase price per share of Common Stock for all
Subsequent Options granted pursuant to this Article II shall be equal to the
Fair Market Value per share of Common Stock on the Grant Date.

        2.4     Payment for Option Shares.  The purchase price for shares of
Common Stock to be acquired upon exercise of an Option granted hereunder shall
be paid in full at the time of exercise in any of the following ways:  (a) in
cash; (b) by certified check, bank draft or money order; (c) by delivery to the
Corporation of previously-acquired shares of the Corporation's Common Stock
with a Fair Market Value (determined on the last trading date immediately
preceding the date of exercise) equal to the exercise price; or (d) by any
combination of the foregoing.

                               III. TERMINATION

        3.1     General.  The unexercised portion of each option automatically
expires, and is no longer exercisable, on the earliest to occur of the
following: (i) seven (7) years after the option is granted , (ii) three (3)
months after the person who was granted the option ceases to be a Nonemployee
Director, other than due to permanent disability, death, or for cause, (iii) one
(1) year following the death or permanent disability of the Nonemployee
Director, and (iv) termination of the Nonemployee Director's service as such,
for cause.

        3.2     Post-Termination Exercise. During the period from the
Participant's termination of services as a Nonemployee Director until the
termination of the Option, the Participant, or the person or persons to whom
the Option shall have been transferred by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order may exercise
the Option only

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to the extent that such Option was exercisable on the date of the Participant's
termination.

                     IV.  ADJUSTMENTS AND CHANGE IN CONTROL

        4.1     Adjustments.  The total amount of Common Stock for which
Options may be granted under this Plan, and the number of shares subject to any
such grants (both as to the number of shares of Common Stock and the Option
price), shall be appropriately adjusted for any increase or decrease in the
number of outstanding shares of Common Stock resulting from payment of a
stock dividend on Common Stock, a subdivision or combination of shares of
Common Stock, a stock split, a recapitalization of Common Stock, or otherwise.
The foregoing adjustments and the manner of application of the foregoing
provisions shall be determined and made by the Committee.  Any such adjustment
may provide for the elimination of any fractional share which might otherwise
become subject to an Option.

        4.2     Change in Control.  Notwithstanding anything contained herein
to the contrary, upon a Change in Control, any outstanding Option granted
hereunder immediately shall become exercisable in full.

                                V. MISCELLANEOUS

        5.1     Partial Exercise.  The Committee shall permit, and shall
establish procedures for, the partial exercise of Options under the Plan.

        5.2     Rule 16b-3 Requirements.  Notwithstanding any other provision
of the Plan, the Committee may impose such conditions on the exercise of an
Option as may be required to satisfy the requirements of Rule 16b-3 and any
successor thereto.

        5.3     Rights Prior to Issuance of Shares.  No Participant shall have
any rights as a shareholder with respect to shares covered by an Option until
and only to the extent that the Option is exercised.

        5.4     Non-Assignability.  Except as set forth below, no Option shall
be transferable by a Participant except by will, the laws of descent and
distribution, or pursuant to a qualified domestic relations order and during
the lifetime of a Participant, an Option shall be exercised only by the
Participant. Notwithstanding the foregoing, to the extent permitted by Rule
16b-3 of the Securities Exchange Act of 1934, as amended from time to time, an
Option may be transferred by a Participant to a living trust of which the
Participant is the grantor and beneficiary during his lifetime, if such transfer
shall not be deemed to constitute a change in beneficial ownership.  No transfer
of an Option by will or the laws of descent and distribution (or to a living
trust as applicable) shall be effective to bind the Corporation unless the
Corporation shall have been furnished with written notice thereof and a copy of
the will (or trust) or such evidence as the Corporation may deem necessary to
establish the validity of the transfer and the acceptance by the transferee of
the terms and conditions of the Option.

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        5.5     Securities Laws.

                (a)     Anything to the contrary herein notwithstanding, the
Corporation's obligation to sell and deliver Common Stock pursuant to the
exercise of an Option is subject to such compliance with federal and state
laws, rules and regulations applying to the authorization, issuance or sale of
securities as the Corporation deems necessary or advisable.  The Corporation
shall not be required to sell and deliver Common Stock unless and until it
receives satisfactory assurance that the issuance or transfer of such shares
shall not violate any of the provisions of the Securities Act of 1933, as
amended, or the Exchange Act, or the rules and regulations of the Securities
and Exchange Commission promulgated thereunder or those of the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., the National Association of
Securities Dealers, Inc. or any stock exchange on which the Common Stock may be
listed, the provisions of any state laws governing the sale of securities, or
that there has been compliance with the provisions of such acts, rules,
regulations and laws.

                (b)     The Committee may impose such restrictions on any
shares of Common Stock acquired pursuant to the exercise of an Option as it may
deem advisable, including, without limitation, restrictions (i) under
applicable federal securities laws, (ii) required by the American Stock
Exchange, Inc., the Nasdaq Stock Market or any stock exchange or other
recognized trading market upon which such shares of Common Stock are then
listed or traded, and (iii) under any blue sky or state securities laws
applicable to such shares.  No shares shall be issued until counsel for the
Corporation has determined that the Corporation has complied with all
requirements under appropriate securities laws.

        5.6     Termination and Amendment.

                (a)     The Board may terminate or suspend the Plan, in whole
or in part, or the granting of Options under the Plan, at any time.  No new
grants shall be made under the Plan after December 31, 2000.

                (b)     The Board may amend or modify the Plan at any time and
from time to time, without shareholder approval, no amendment or modification,
without the approval of the shareholders of the Corporation, except that no
such action shall be taken by the Board that (i) materially increase the
benefits accruing to Participants under the Plan, materially increase the
amount of Common Stock for which grants may be made under the Plan, except as
permitted under Sections 1.4 and 4.1, or materially change the provisions
relating to the eligibility of individuals to whom grants may be made under the
Plan, (ii) causes the Nonemployee Director to fail to satisfy the applicable
requirements of Rule 16b-3 under the Exchange Act, or any Nonemployee Director
to fail to qualify as a "disinterested person" as defined in that rule, or
(iii) impairs the rights of any option holder granted under the Nonemployee
Director Plan, without such option holder's consent.  Unless otherwise
permitted under Rule 16b-3, this Plan shall not be amended more than once in
any six (6) month period other than to comply with changes in the Code or the
Exchange Act.

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<PAGE>
                (c)     No amendment, modification or termination of the Plan
shall adversely affect any Option granted under the Plan without the consent of
the Participant holding the Option.

        5.7     Effect on Services. Neither the adoption of the Plan nor the
granting of any Option pursuant to the Plan shall be deemed to create any right
in any individual to be retained as a Nonemployee Director.

        5.8     Use of Proceeds. The proceeds received from the sale of Common
Stock pursuant to the Plan shall be used for general corporate purposes of the
Corporation.

        5.9     Approval of Plan. The Plan shall be subject to the approval of
the holders of at least a majority of the shares of Common Stock of the
Corporation present and entitled to vote at a meeting of shareholders of the
Corporation held within twelve (12) months after adoption of the Plan by the
Board. Any Option granted under the Plan prior to such shareholder approval,
shall be conditioned upon receipt of such approval, and may not be exercised in
whole or in part unless the Plan has been approved by the shareholders as
provided herein. If not approved by shareholders within twelve (12) months
after approval by the Board, the Plan shall be rescinded, and any Options
granted under the Plan shall be void retroactive to the Grant Date.

BOARD APPROVAL: January 15, 1997

SHAREHOLDER APPROVAL: January 15, 1997

                                      8exv10w1

 

EXHIBIT 10.1

AGREEMENT ID

195.0

     THIS AGREEMENT entered into this 1st day of Nov, 2002, (“Agreement”) by
and between TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware
corporation, hereinafter referred to as “Seller,” first party, and WASHINGTON
GAS LIGHT COMPANY, hereinafter referred to as “Buyer,” second party,

W I T N E S S E T H

     WHEREAS, by orders issued April 26, 2000 and December 13, 2000 in Docket
Nos. CP98-540-002 and CP98-540-003, the Federal Energy Regulatory Commission
(“FERC”) authorized Seller’s MarketLink Expansion Project (referred to as
“MarketLink Project”); and

     WHEREAS, Williams Energy Marketing and Trading Company (WEM&T) and Seller
are parties to a service agreement dated August 18, 2000, as amended on
September 26, 2001, and December 19, 2001, (“MarketLink Agreement”) for 50,000
dekatherms of gas per day of firm transportation service under Seller’s
MarketLink Project; and

     WHEREAS, WEM&T has agreed to permanently release 50,000 dekatherms of gas
per day of the firm transportation service under the MarketLink Agreement to
Buyer pursuant to Section 42.14 of the General Terms and Conditions of
Seller’s FERC Gas Tariff; and

     WHEREAS, WEM&T’s permanent capacity release of 50,000 dekatherms per day
of firm MarketLink capacity to Buyer requires the execution of this Agreement
by Buyer and Seller, and

     WHEREAS, Seller is willing to provide the requested firm transportation
service for Buyer under the MarketLink Project pursuant to the terms of this
Service Agreement and subject to the satisfaction of requirements contained in
the FERC’s order approving the MarketLink Project.

     NOW, THEREFORE, Seller and Buyer agree as follows

ARTICLE I

GAS TRANSPORTATION SERVICE

     1.     Subject to the terms and provisions of this Agreement and of Seller’s
Rate Schedule FT, Buyer agrees to deliver or cause to be delivered to Seller gas for
transportation and Seller agrees to receive, transport and redeliver natural gas to Buyer or for the
account of Buyer, on a firm basis, up to a Transportation Contract Quantity (“TCQ”) of 50,000 dekatherms per
day.

     2.     Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 of the General Terms and
Conditions of Seller’s FERC Gas Tariff.

 

 

AGREEMENT ID

195.0

ARTICLE II

POINT(S) OF RECEIPT

     Buyer shall deliver or cause to be delivered gas at the point(s) of
receipt hereunder at a pressure sufficient to allow the gas to enter
Seller’s pipeline system at the varying pressures that may exist in such
system from time to time; provided, however, the pressure of the gas
delivered or caused to be delivered by Buyer shall not exceed the maximum
operating pressure(s) of Seller’s pipeline system at such point(s) of
receipt. In the event the maximum operating pressure(s) of Seller’s
pipeline system, at the point(s) of receipt hereunder, is from time to
time increased or decreased, then the maximum allowable pressure(s) of
the gas delivered or caused to be delivered by Buyer to Seller at the
point(s) of receipt shall be correspondingly increased or decreased upon
written notification of Seller to Buyer. The point(s) of receipt for
natural gas received for transportation pursuant to this Agreement shall
be:

     See Exhibit A, attached hereto, for points of receipt.

ARTICLE III

POINT(S) OF DELIVERY

     Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery and at a
pressure(s) of:

     See Exhibit B, attached hereto, for points of delivery and pressures.

ARTICLE IV

TERM OF AGREEMENT

     This Agreement shall be effective as of November 1, 2002, and shall
remain in force and effect until 9:00 a.m. Central Clock Time December
19, 2011, and thereafter until terminated by Seller or Buyer upon at
least one (1) year prior written notice; provided, however, this
Agreement shall terminate immediately and, subject to the receipt of
necessary authorizations, if any, Seller may discontinue service
hereunder if (a) Buyer, in Seller’s reasonable judgement fails to
demonstrate credit worthiness, and (b) Buyer fails to provide adequate
security in accordance with Section 32 of the General Terms and
Conditions of Seller’s Volume No. 1 Tariff. As set forth in Section 8 of
Article II of Seller’s August 7,1989 revised Stipulation and Agreement in
Docket Nos. RP88-68 et al., (a) pregranted abandonment under Section
284.22l(d) of the Commission’s Regulations shall not apply to any long
term conversions from firm sales service to transportation service under
Seller’s Rate Schedule FT and (b) Seller shall not exercise its right to
terminate this service agreement as it applies to transportation service
resulting from conversions from firm sales service so long as Buyer is
willing to pay rates no less favorable than Seller is otherwise able to
collect from third parties for such service.

ARTICLE V

RATE SCHEDULE AND PRICE

     
     Buyer shall pay Seller for natural gas delivered to Buyer hereunder
in accordance with

 

 

AGREEMENT ID

195.0

the FERC’s order approving Seller’s MarketLink Project, Seller’s Rate
Schedule FT and the applicable provisions of the General Terms and
Conditions of Seller’s FERC Gas Tariff as filed with the FERC, and as the
same may be legally amended or superseded from time to time. Such Rate
Schedule and General Terms and Conditions are by this reference made a
part hereof. In the event Buyer and Seller mutually agree to a negotiated
rate pursuant to the provisions in Section 53 of the General Terms and
Conditions and specified term for service hereunder, provisions governing
such negotiated rate (including surcharges) and term shall be set forth on
Exhibit C to the service agreement.

     2.     Seller and Buyer agree that the quantity of gas that Buyer delivers
or causes to be delivered to Seller shall include the quantity of gas retained by
Seller for applicable compressor fuel, line loss make-up (and injection fuel under Seller’s Rate Schedule
GSS, if applicable) in providing the transportation service hereunder, which quantity may be changed
from time to time and which will be specified in the currently effective Sheet No. 44 of Volume
No. 1 of this Tariff which relates to service under this agreement and which is incorporated herein.

     3.     In addition to the applicable charges for firm transportation
service pursuant to Section 3 of Seller’s Rate Schedule FT, Buyer shall reimburse Seller
for any and all filing fees incurred as a result of Buyer’s request for service under Seller’s
Rate Schedule FT, to the extent such fees are imposed upon Seller by the FERC or any successor governmental
authority having jurisdiction.

ARTICLE VI

MISCELLANEOUS

     1.     This Agreement supersedes and cancels as of the effective date
hereof the following contract(s) between the parties hereto: None.

     2.     No waiver by either party of any one or more defaults by the other
in the performance of any provisions of this agreement shall operate or be construed as a
waiver of any future default or defaults, whether of a like or different character.

     3.     The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law governing
conflict of laws, and to all present and future valid laws with respect to the subject matter, including
present and future orders, rules and regulations of duly constituted authorities.

     4.     This agreement shall be binding upon, and inure to the benefit of
the parties hereto and their respective successors and assigns.

     5.     Notices to either party shall be in writing and shall be considered
as duly delivered when mailed to the other party at the following address:

 

 

AGREEMENT ID

195.0

	 
	If to Seller:
	Transcontinental Gas Pipe Line Corporation
	P.O. Box 1396
	Houston, Texas 77251-1396
	Attn: Director - Customer Services

	 
	If to Buyer:
	Washington Gas Light Company
	6801 Industrial Road
	Springfield, Virginia 22151
	Attn: Contract Management

Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.

     IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective officers or representatives thereunto duly
authorized.

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

	 	 	 	 
	By:	/s/	
Frank Ferazzi	 
	 	

	 
	 	 	
Frank Ferazzi	 
	 	 	
Vice President - Customer Service	 

WASHINGTON GAS LIGHT COMPANY

	 	 	 	 
	By:	/s/	
Terry D. McCallister	 
	 	

	 
	 	 	
Terry D. McCallister	 
	Title:	 	
President & COO	 

 

 

ID

Exhibit A

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED NOVEMBER 1,2002.

	 	 	 
	 	 	Seller's
	 	 	Cumulative
	 	 	Daily Receipt
	Points of Receipt	 	Obligation
(Dt/d)1
	
	 	

	The point of interconnection between
Seller and CNG Transmission Corporation
at Leidy, Clinton County, Pennsylvania	 	
50,000*
	 	 	
 
	The point of interconnection between
Seller and National Fuel at Leidy,
Clinton County, Pennsylvania	 	
50,000*

*  Note: The sum of the receipts from the points specified above, not inclusive
of fuel and line loss make-up, may not exceed the TCQ of 50,000 dt/d except as
permitted in Seller’s FERC Gas Tariff, as effective at the time
of receipt.

These quantities do not include the additional quantities of gas retained by
Seller for applicable compressor fuel and line loss make-up provided for in
Article V. 2 of this Service Agreement, which are subject to change as
provided for in Article V. 2 hereof. Therefore, Buyer shall also deliver or
cause to be delivered at the receipt points such additional quantities of
gas in kind to be retained by Seller for compressor fuel and line loss
make-up.

 

 

AGREEMENT ID

195.0

Exhibit B

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON
GAS LIGHT COMPANY, AS BUYER, DATED NOVEMBER 1,2002.

	 	 	 
	 	 	Maximum Daily
	Point(s) of Delivery
and Pressures1	 	Delivery Quantity.
(Dt/d)3
	
	 	

	The point of interconnection between
Seller’s Pipeline and the New York
Facilities located at the East Bank of
the Hudson River in the Borough of
Manhattan, City of New York, near 134th
Street (Manhattan).2	 	
50,000*
	 	 	 
	The point of interconnection between
Seller’s Pipeline and the New York
Facilities located at the East Bank of
the Hudson River in the Borough of
Manhattan, City of New York, near 72nd
Street (Central Manhattan). 2	 	
50,000*
	 	 	 
	The point of interconnection between
Seller and Public Service Electric &
Gas (PSE&G) referred to as Sayreville
Meter Station, near milepost 6.75 on
Seller’s Lower New York Bay Extension
in Middlesex County, New Jersey.	 	
50,000*
	 	 	 
	Proposed new delivery point at the
Public Service Electric and Gas
proposed Red Oak Meter Station to be
located near milepost 6.75 on Seller’s
Lower New York Bay Extension in
Middlesex County, New Jersey.	 	
50,000*

*     Note: The sum of the deliveries to the points specified above may not
exceed the TCQ of 50,000 dt/d except as permitted in Seller’s FERC Gas
Tariff, as effective at the time of delivery.

	 	 	 	Pressure(s) shall not be less than fifty (50) pounds per square inch
gauge or at such other pressures as may be agreed upon by Buyer and
Seller.
	 
	 	 	 	Pressure(s) shall not be less than two hundred seventy-five (275)
pounds per square inch gauge or at such other pressures as may be
agreed upon by Buyer and Seller.
	 
	 	 	 	Deliveries to or for the account of Shipper at the delivery point(s)
shall be subject to the limits of the Delivery Point Entitlement
(DPE’s), if applicable, of the entities receiving the gas at the
delivery points, as such DPE’s are set forth in Transco’s FERC Gas
Tariff, as amended from time to time.

 

 

AGREEMENT ID

195.0

Exhibit C

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS
LIGHT COMPANY, AS BUYER, DATED NOVEMBER 1, 2002.

Specification of Negotiated Rate
and Term

None.

 

 

AGREEMENT ID

199.0

     THIS
AGREEMENT entered into this 1st day of Nov, 2002, (“Agreement”) by
and between TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware
corporation, hereinafter referred to as “Seller,” first party, and WASHINGTON
GAS LIGHT COMPANY, hereinafter referred to as “Buyer,” second party,

WITNESSETH

     WHEREAS, by orders issued April 26, 2000 and December 13, 2000 in Docket
Nos. CP98-540-002 and CP98-540-003, the Federal Energy Regulatory Commission
(“FERC”) authorized Seller’s MarketLink Expansion Project (referred to as
“MarketLink Project”); and

     WHEREAS, Williams Energy Marketing and Trading Company (WEM&T) and
Seller are parties to a service agreement dated August 18, 2000, as amended
on September 26, 2001, and December 19, 2001, (“MarketLink Agreement”) for
50,000 dekatherms of gas per day of firm transportation service under
Seller’s MarketLink Project; and

     WHEREAS, WEM&T has agreed to permanently release 50,000 dekatherms of
gas per day of the firm transportation service under the MarketLink Agreement
to Buyer pursuant to Section 42.14 of the General Terms and Conditions of
Seller’s FERC Gas Tariff; and

     WHEREAS, WEM&T’s permanent capacity release of 50,000 dekatherms per day
of firm MarketLink capacity to Buyer requires the execution of this Agreement
by Buyer and Seller, and

     WHEREAS, Seller is willing to provide the requested firm transportation
service for Buyer under the MarketLink Project pursuant to the terms of this
Service Agreement and subject to the satisfaction of requirements contained
in the FERC’s order approving the MarketLink Project.

     NOW, THEREFORE, Seller and Buyer agree as follows:

ARTICLE I

GAS TRANSPORTATION SERVICE

     1.     Subject to the terms and provisions of this Agreement and of Seller’s
Rate Schedule FT, Buyer agrees to deliver or cause to be delivered to Seller gas for
transportation and Seller agrees to receive, transport and redeliver natural gas to Buyer or for the
account of Buyer, on a firm basis, up to a Transportation Contract Quantity (“TCQ”) of 50,000 dekatherms per
day.

     2.     Transportation service rendered hereunder shall not be subject to
curtailment or interruption except as provided in Section 11 of the General Terms and
Conditions of Seller’s FERC Gas Tariff.

 

 

AGREEMENT ID

199.0

ARTICLE II

POINT(S) OF RECEIPT

     Buyer shall deliver or cause to be delivered gas at the point(s) of
receipt hereunder at a pressure sufficient to allow the gas to enter
Seller’s pipeline system at the varying pressures that may exist hi such
system from time to tune; provided, however, the pressure of the gas
delivered or caused to be delivered by Buyer shall not exceed the maximum
operating pressure(s) of Seller’s pipeline system at such point(s) of
receipt. In the event the maximum operating pressure(s) of Seller’s
pipeline system, at the point(s) of receipt hereunder, is from time to time
increased or decreased, then the maximum allowable pressure(s) of the gas
delivered or caused to be delivered by Buyer to Seller at the point(s) of
receipt shall be correspondingly increased or decreased upon written
notification of Seller to Buyer. The point(s) of receipt for natural gas
received for transportation pursuant to this Agreement shall be:

     See Exhibit A, attached hereto, for points of receipt.

ARTICLE III

POINT(S) OF DELIVERY

     Seller shall redeliver to Buyer or for the account of Buyer the gas
transported hereunder at the following point(s) of delivery and at a
pressure(s) of:

     See Exhibit B, attached hereto, for points of delivery and pressures.

ARTICLE IV

TERM OF AGREEMENT

     This Agreement shall be effective as of November 1, 2002, and shall
remain in force and effect until 9:00 a.m. Central Clock Time December 19,
2011, and thereafter until terminated by Seller or Buyer upon at least one
(1) year prior written notice; provided, however, this Agreement shall
terminate immediately and, subject to the receipt of necessary
authorizations, if any, Seller may discontinue service hereunder if (a)
Buyer, in Seller’s reasonable judgement fails to demonstrate credit
worthiness, and (b) Buyer fails to provide adequate security in accordance
with Section 32 of the General Terms and Conditions of Seller’s Volume No. 1
Tariff. As set forth in Section 8 of Article II of Seller’s August 7, 1989
revised Stipulation and Agreement in Docket Nos. RP88-68 et al., (a)
pregranted abandonment under Section 284.221(d) of the Commission’s
Regulations shall not apply to any long term conversions from firm sales
service to transportation service under Seller’s Rate Schedule FT and (b)
Seller shall not exercise its right to terminate this service agreement as
it applies to transportation service resulting from conversions from firm
sales service so long as Buyer is willing to pay rates no less favorable
than Seller is otherwise able to collect from third parties for such
service.

ARTICLE V

RATE SCHEDULE AND PRICE

     1.     Buyer shall pay Seller for natural gas delivered to Buyer
hereunder in accordance with

 

 

AGREEMENT ID

199.0

the FERC’s order approving Seller’s MarketLink Project, Seller’s Rate Schedule
FT and the applicable provisions of the General Terms and Conditions of
Seller’s FERC Gas Tariff as filed with the FERC, and as the same may be
legally amended or superseded from time to time. Such Rate Schedule and
General Terms and Conditions are by this reference made a part hereof. In the
event Buyer and Seller mutually agree to a negotiated rate pursuant to the
provisions in Section 53 of the General Terms and Conditions and specified
term for service hereunder, provisions governing such negotiated rate
(including surcharges) and term shall be set forth on Exhibit C to the service
agreement.

     2.     Seller and Buyer agree that the quantity of gas that Buyer delivers or
causes to be delivered to Seller shall include the quantity of gas retained by Seller
for applicable compressor fuel, line loss make-up (and injection fuel under Seller’s Rate Schedule GSS, if
applicable) in providing the transportation service hereunder, which quantity may be changed from
time to time and which will be specified in the currently effective Sheet No. 44 of Volume No. 1
of this Tariff which relates to service under this agreement and which is incorporated herein.

     3.     In addition to the applicable charges for firm transportation service
pursuant to Section 3 of Seller’s Rate Schedule FT, Buyer shall reimburse Seller for
any and all filing fees incurred as a result of Buyer’s request for service under Seller’s Rate
Schedule FT, to the extent such fees are imposed upon Seller by the FERC or any successor governmental
authority having jurisdiction.

ARTICLE VI

MISCELLANEOUS

     1.     This Agreement supersedes and cancels as of the effective date hereof
the following contract(s) between the parties hereto: None.

     2.     No waiver by either party of any one or more defaults by the other in
the performance of any provisions of this agreement shall operate or be construed as a
waiver of any future default or defaults, whether of a like or different character.

     3.     The interpretation and performance of this agreement shall be in
accordance with the laws of the State of Texas, without recourse to the law governing conflict
of laws, and to all present and future valid laws with respect to the subject matter, including
present and future orders, rules and regulations of duly constituted authorities.

     4.     This agreement shall be binding upon, and inure to the benefit of the
parties hereto and their respective successors and assigns.

     5.     Notices to either party shall be in writing and shall be considered as
duly delivered when mailed to the other party at the following address:

 

 

AGREEMENT ID

199.0

	 	(a)	 	If to Seller:

Transcontinental Gas Pipe Line Corporation

P.O. Box 1396

Houston, Texas 77251-1396

Attn: Director - Customer Services
	 
	 	(b)	 	If to Buyer:

Washington Gas Light Company

6801 Industrial Road

Springfield, Virginia 22151

Attn: Contract Management

Such addresses may be changed from time to time by mailing appropriate notice
thereof to the other party by certified or registered mail.

     IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
signed by their respective officers or representatives thereunto duly
authorized.

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

	 	 	 
	By:	 	
/s/ Frank Ferazzi
	 	 	

	 	 	
Frank Ferazzi
	 	 	
Vice President - Customer Service

WASHINGTON GAS LIGHT COMPANY

	 	 	 
	By:	 	
/s/ Terry D. McCallister
	 	 	

	 	 	
Terry D. McCallister
	Title:	 	
President & COO

 

 

AGREEMENT ID

199.0

Exhibit A

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED NOVEMBER 1, 2002.

	 	 	 
	 	 	Seller’s Cumulative
	 	 	Daily Receipt
	Points of Receipt	 	Obligation (Dt/d)
1
	
	 	

	The point of interconnection between
Seller and CNG Transmission
Corporation at Leidy, Clinton County,
Pennsylvania.	 	
50,000*
	 	 	 
	The point of interconnection between
Seller and National Fuel at Leidy,
Clinton County, Pennsylvania.	 	
50,000*

* Note: The sum of the receipts from the points specified above, not inclusive of fuel and line loss
make-up, may not exceed the TCQ of 50,000 dt/d except as permitted in Seller’s FERC Gas Tariff,
as effective at the time of receipt.

	 	 	These quantities do not include the additional quantities of gas retained by
Seller for applicable compressor fuel and line loss make-up provided for in
Article V. 2 of this Service Agreement, which are subject to change as
provided for in Article V. 2 hereof. Therefore, Buyer shall also deliver or
cause to be delivered at the receipt points such additional quantities of
gas in kind to be retained by Seller for compressor fuel and line loss
make-up.

 

 

AGREEMENT ID

199.0

Exhibit B

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS
LIGHT COMPANY, AS BUYER, DATED NOVEMBER 1, 2002.

	 	 	 
	 	 	Maximum Daily
	Point(s) of Delivery
and Pressures 1	 	Delivery Quantity
(Dt/d)3
	
	 	

	The point of interconnection between Seller’s
Pipeline and the New York Facilities located at the
East Bank of the Hudson River in the Borough of
Manhattan, City of New York, near 134th Street
(Manhattan).2	 	
50,000*
	 	 	 
	The point of interconnection between Seller’s
Pipeline and the New York Facilities located at the
East Bank of the Hudson River in the Borough of
Manhattan, City of New York, near 72nd Street
(Central Manhattan). 2	 	
50,000*
	 	 	 
	The point of interconnection between Seller and
Public Service Electric & Gas (PSE&G) referred to
as Sayreville Meter Station, near milepost 6.75 on
Seller’s Lower New York Bay Extension in
Middlesex County, New Jersey.	 	
50,000*
	 	 	 
	Proposed new delivery point at the Public Service
Electric and Gas proposed Red Oak Meter Station to
be located near milepost 6.75 on Seller’s Lower
New York Bay Extension in Middlesex County,
New Jersey.	 	
50,000*

* Note: The sum of the deliveries to the points specified above may not
exceed the TCQ of 50,000 dt/d except as permitted in Seller’s FERC Gas
Tariff, as effective at the time of delivery.

	 	 	Pressure(s) shall not be less than fifty (50) pounds per square inch
gauge or at such other pressures as may be agreed upon by Buyer and
Seller.
	 
	 	 	Pressure(s) shall not be less than two hundred seventy-five (275)
pounds per square inch gauge or at such other pressures as may be
agreed upon by Buyer and Seller.
	 
	 	 	Deliveries to or for the account of Shipper at the delivery point(s)
shall be subject to the limits of the Delivery Point Entitlement
(DPE’s), if applicable, of the entities receiving the gas at the
delivery points, as such DPE’s are set forth in Transco’s FERC Gas
Tariff, as amended from time to time.

 

 

AGREEMENT ID

199.0

Exhibit C

ATTACHED AND MADE PART OF THAT SERVICE AGREEMENT BY AND BETWEEN
TRANSCONTINENTAL GAS PIPE LINE CORPORATION, AS SELLER, AND WASHINGTON GAS LIGHT
COMPANY, AS BUYER, DATED NOVEMBER 1, 2002.

Specification of Negotiated Rate and Term 

None.

 

 

AGREEMENT ID

199.1

AGREEMENT TO DISCOUNT

INTERRUPTIBLE TRANSPORTATION RATES

In response to Shipper’s request for rate consideration at the described
receipt and delivery point(s) in conjunction with Shipper’s participation in
Transco’s MarketLink Project, and based on Shipper’s representation that the
rate consideration is necessary in order to meet competition, Transco and
Shipper agree to the following terms:

	A.	 	Defined Contract Terms

	 	1	 	Agreement - This Agreement to Discount Interruptible Transportation
Rates.
	 
	 	2.	 	Transco - Transcontinental Gas Pipe Line Corporation.
	 
	 	3.	 	Shipper - Washington Gas Light Company
	 
	 	4.	 	Receipt Point(s) - The
receipt points set forth on Exhibit “A”.
	 
	 	5	 	Delivery Point(s) - The
delivery points set forth on Exhibit “A”.
	 
	 	6.	 	Maximum Daily Qualifying Quantity - The maximum daily quantity
available for an interruptible transportation discount for Shipper set
forth on Exhibit “A” hereto.
	 
	 	7.	 	Discount Period - This Agreement shall become effective as of the
effective date of the Service Agreement under Rate Schedule FT between
Transco and Shipper for Transco’s MarketLink Expansion Project (“FT
Agreement”) and shall remain in effect for a term coextensive with the
term of such FT Agreement.
	 
	 	8.	 	Discount Rate - Each discounted interruptible transportation rate set
forth
on Exhibit “A” hereto.

	B	 	Agreement of the Parties

 

 

AGREEMENT ID

199.1

	 	 	 	During the Discount Period, Transco agrees to charge Shipper the
Discount Rate for interruptible transportation quantities, of up to the
Maximum Daily Qualifying Quantity, under Rate Schedule IT fed upstream
by the FT Agreement and scheduled by Shipper and transported by Transco
on a daily basis from the Receipt Point(s) to the Delivery Point(s).
	 
	 	2.	 	If Transco interrupts or allocates interruptible transportation service
under Rate Schedule IT to Shipper on any day during the Discount
Period, Shipper may request to continue interruptible transportation
service at the maximum interruptible rates and Transco and Shipper may
agree to temporarily suspend the applicability of this Agreement.
	 
	 	3.	 	This Agreement shall also be subject to the condition that if Transco’s
maximum rate, inclusive of Transco’s interruptible transportation rate
and
all applicable surcharges in effect on the first day of the Discount
Period,
for interruptible transportation of Shipper’s gas from the Receipt
Point(s)
to the Delivery Point(s) pursuant to Rate Schedule IT (such maximum
rate, inclusive of all applicable surcharges, for this transportation
being
hereinafter referred to as the “Maximum Rate”) is subsequently reduced
by Federal Energy Regulatory Commission (“Commission”) order or rule
or by settlement or otherwise, and Transco is required to make a refund
to
Shipper for charges paid for such transportation, then such refund shall
be
provided to Shipper only if and to the extent that the Maximum Rate
determined pursuant to such order, rule, settlement or otherwise is less
than the Discount Rate. Such refund, if any, shall be calculated by
subtracting the applicable Maximum Rate from the corresponding
Discount Rate.
	 
	 	4.	 	This Agreement shall be subject to the terms and conditions of Transco’s
FERC Gas Tariff and all valid and applicable state, federal and local
laws, orders, directives, rules and regulations of any duly constituted
governmental or other regulatory bodies or officials having jurisdiction
over the subject matter hereof, including, without limitation of the
foregoing, any law, order, directive, rule or regulation requiring
Transco to charge rate(s) greater than the rate(s) set forth on Exhibit
“A” hereto.
	 
	 	 	 	No modification to this Agreement shall be or become effective except by

 

 

AGREEMENT ID

199.1

	 	 	 	the execution by both parties of a supplementary written agreement.
	 
	 	5	 	THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY
CONFLICTS OF LAWS RULES OR PRINCIPLES THAT MIGHT REFER THE
CONSTRUCTION OR OPERATION OF THIS AGREEMENT TO THE LAWS OF ANOTHER
STATE.
	 
	 	6.	 	This Agreement shall not be assigned by either party without
the prior written consent of the other party.

	C.	 	Execution by the Parties
 If the foregoing accurately reflects the agreement of the parties, please
so indicate by signing both original copies of this Agreement in the space provided below and returning them to Transco. A fully executed original
copy will be returned to Shipper for its files.

	 	 	 
	 	 	
TRANSCONTINENTAL GAS PIPE LINE
	 	 	
CORPORATION
	 	 	 
	 	 	
/s/ FRANK FERAZZI

	 	 	
FRANK FERAZZI
	 	 	
VICE PRESIDENT
	 	 	
CUSTOMER SERVICE

ACCEPTED AND AGREED TO THIS

      DAY OF                  ,      

Washington Gas Light Company

	 	 	 
	By:	 	
/s/ Terry D. McCallister
	 	 	

	 	 	
Terry D. McCallister
	
Title : President & COO

 

 

\

AGREEMENT ID

199.1

Exhibit “A” to

AGREEMENT TO DISCOUNT

TRANSPORTATION RATES

BETWEEN TRANSCONTINENTAL GAS PIPE LINE CORPORATION (Transco) AND

Washington Gas Light Company (SHIPPER)

EFFECTIVE IN ACCORDANCE WITH SECTION A.7 OF THIS AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Transco	 	Daily Average	 	 
	 	 	 	 	System	 	Qualifying	 	 
	 	 	Delivery	 	Contract	 	Quantity	 	Discount Rate 1/
	Receipt Point(s)	 	Point(s) 1/	 	Number	 	(DT/D)	 	(Cents/DT)
	
	 	
	 	
	 	
	 	

	Transco – Princeton
Junction (Station
210-IT- WGL

    TP#6321)	 	
Mainline points

  upstream of

  Princeton Junction

  and downstream of

  Station 65
	 	 	4.3506	 	 	2/
	 	3/ 
4/

1/ The delivery point to be specified by Shipper in the course of scheduling
and nominating gas under the Rate Schedule IT Agreement and this Agreement;
however, such point of delivery shall be a Transco mainline point that is
upstream of Princeton Junction.

2/ A quantity equivalent to the quantity scheduled and nominated by Shipper for
delivery at Princeton Junction under Shipper’s FT Agreement for service under
Transco’s MarketLink Expansion Project but in no event shall such quantity
exceed 50,000 dekatherms per day.

3/ The minimum rate under Rate Schedule IT stated in Transco’s currently
effective FERC Gas Tariff, as amended from time to time, from the point of
receipt to the point of delivery specified by the Shipper.

4/ In addition to the Discount Rate, Shipper shall be charged and shall pay, in
accordance with Transco’s FERC Gas Tariff, for any applicable compressor fuel
and line loss make-up and for any applicable surcharges under Transco’s Rate
Schedule IT as amended from time to time.

	 	 	 	 	 
	 	 	Initials
of the parties.
	 	 	 	 	 
	 	 	
Transco
	 	/s/
	 	 	 	 	

	 	 	 	 	 
	 	 	
Shipper
	 	/s/ Terry D. McCallister

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