Document:

Exhibit 10.1

 

$100,000,000 REVOLVING
CREDIT FACILITY

 

CREDIT AGREEMENT

 

by and among

 

THE DAYTON POWER AND LIGHT
COMPANY

 

and

 

THE LENDERS PARTY HERETO

 

and

 

PNC BANK, NATIONAL
ASSOCIATION, as Administrative Agent

 

Dated as of April 21,
2009

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  CERTAIN
  DEFINITIONS

  	
  1

  
	
   

  	
  1.1

  	
  Certain Definitions

  	
  1

  
	
   

  	
  1.2

  	
  Construction

  	
  20

  
	
   

  	
  1.3

  	
  Accounting Principles

  	
  21

  
	
   

  	
   

  	
   

  
	
  2.

  	
  REVOLVING
  CREDIT FACILITIES

  	
  21

  
	
   

  	
  2.1

  	
  Revolving Credit
  Commitments

  	
  21

  
	
   

  	
  2.2

  	
  Nature of Lenders’
  Obligations with Respect to Revolving Credit Loans

  	
  21

  
	
   

  	
  2.3

  	
  Facility Fees

  	
  21

  
	
   

  	
  2.4

  	
  Revolving Credit Loan
  Requests

  	
  22

  
	
   

  	
  2.5

  	
  Making Revolving Credit
  Loans; Presumptions by the Administrative Agent; Repayment of Revolving
  Credit Loans

  	
  22

  
	
   

  	
   

  	
  2.5.1

  	
  Making Revolving Credit
  Loans

  	
  22

  
	
   

  	
   

  	
  2.5.2

  	
  Presumptions by the
  Administrative Agent

  	
  22

  
	
   

  	
   

  	
  2.5.3

  	
  Repayment of Revolving
  Credit Loans

  	
  23

  
	
   

  	
  2.6

  	
  Notes

  	
  23

  
	
   

  	
  2.7

  	
  Use of Proceeds

  	
  23

  
	
   

  	
  2.8

  	
  Voluntary Termination

  	
  23

  
	
   

  	
   

  	
   

  
	
  3.

  	
  INTEREST
  RATES

  	
  23

  
	
   

  	
  3.1

  	
  Interest Rate Options

  	
  23

  
	
   

  	
   

  	
  3.1.1

  	
  Revolving Credit
  Interest Rate Options

  	
  24

  
	
   

  	
   

  	
  3.1.2

  	
  Rate Quotations

  	
  24

  
	
   

  	
  3.2

  	
  Interest Periods

  	
  24

  
	
   

  	
   

  	
  3.2.1

  	
  Amount of Borrowing
  Tranche

  	
  24

  
	
   

  	
   

  	
  3.2.2

  	
  Renewals

  	
  24

  
	
   

  	
  3.3

  	
  Interest After Default

  	
  24

  
	
   

  	
   

  	
  3.3.1

  	
  Interest Rate

  	
  24

  
	
   

  	
   

  	
  3.3.2

  	
  Other Obligations

  	
  24

  
	
   

  	
   

  	
  3.3.3

  	
  Acknowledgment

  	
  25

  
	
   

  	
  3.4

  	
  LIBOR Rate
  Unascertainable; Illegality; Increased Costs; Deposits Not Available

  	
  25

  
	
   

  	
   

  	
  3.4.1

  	
  Unascertainable

  	
  25

  
	
   

  	
   

  	
  3.4.2

  	
  Illegality; Increased
  Costs; Deposits Not Available

  	
  25

  
	
   

  	
   

  	
  3.4.3

  	
  Administrative Agent’s
  and Lender’s Rights

  	
  25

  
	
   

  	
  3.5

  	
  Selection of Interest Rate
  Options

  	
  26

  
	
   

  	
   

  	
   

  
	
  4.

  	
  PAYMENTS

  	
  26

  
	
   

  	
  4.1

  	
  Payments

  	
  26

  
	
   

  	
  4.2

  	
  Pro Rata Treatment of
  Lenders

  	
  26

  
	
   

  	
  4.3

  	
  Sharing of Payments by
  Lenders

  	
  27

  
	
   

  	
  4.4

  	
  Presumptions by
  Administrative Agent

  	
  28

  
	
   

  	
  4.5

  	
  Interest Payment Dates

  	
  28

  
	
   

  	
  4.6

  	
  Voluntary Prepayments

  	
  28

  

 

i

 

	
   

  	
   

  	
  4.6.1

  	
  Right to Prepay

  	
  28

  
	
   

  	
   

  	
  4.6.2

  	
  Replacement of a Lender

  	
  29

  
	
   

  	
  4.7

  	
  Increased Costs

  	
  30

  
	
   

  	
   

  	
  4.7.1

  	
  Increased Costs
  Generally

  	
  30

  
	
   

  	
   

  	
  4.7.2

  	
  Capital Requirements

  	
  30

  
	
   

  	
   

  	
  4.7.3

  	
  Certificates for
  Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans

  	
  30

  
	
   

  	
   

  	
  4.7.4

  	
  Delay in Requests

  	
  31

  
	
   

  	
  4.8

  	
  Taxes

  	
  31

  
	
   

  	
   

  	
  4.8.1

  	
  Payments Free of Taxes

  	
  31

  
	
   

  	
   

  	
  4.8.2

  	
  Payment of Other Taxes
  by the Borrower

  	
  31

  
	
   

  	
   

  	
  4.8.3

  	
  Indemnification by the
  Borrower

  	
  31

  
	
   

  	
   

  	
  4.8.4

  	
  Evidence of Payments

  	
  31

  
	
   

  	
   

  	
  4.8.5

  	
  Status of Lenders

  	
  32

  
	
   

  	
   

  	
  4.8.6

  	
  Refunds

  	
  33

  
	
   

  	
  4.9

  	
  Indemnity

  	
  33

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  34

  
	
   

  	
  5.1

  	
  Representations and
  Warranties

  	
  34

  
	
   

  	
   

  	
  5.1.1

  	
  Corporate Status

  	
  34

  
	
   

  	
   

  	
  5.1.2

  	
  Corporate Power and
  Authority

  	
  34

  
	
   

  	
   

  	
  5.1.3

  	
  No Violation

  	
  34

  
	
   

  	
   

  	
  5.1.4

  	
  Governmental Approvals

  	
  35

  
	
   

  	
   

  	
  5.1.5

  	
  Litigation

  	
  35

  
	
   

  	
   

  	
  5.1.6

  	
  Use of Proceeds; Margin
  Regulations

  	
  35

  
	
   

  	
   

  	
  5.1.7

  	
  Financial Statements

  	
  35

  
	
   

  	
   

  	
  5.1.8

  	
  Material Adverse Effect

  	
  36

  
	
   

  	
   

  	
  5.1.9

  	
  Taxes

  	
  36

  
	
   

  	
   

  	
  5.1.10

  	
  Title to Property

  	
  36

  
	
   

  	
   

  	
  5.1.11

  	
  Insurance

  	
  36

  
	
   

  	
   

  	
  5.1.12

  	
  ERISA Compliance

  	
  37

  
	
   

  	
   

  	
  5.1.13

  	
  Environmental Matters

  	
  37

  
	
   

  	
   

  	
  5.1.14

  	
  Solvency

  	
  37

  
	
   

  	
   

  	
  5.1.15

  	
  Lawful Operation;
  Compliance with Laws

  	
  38

  
	
   

  	
   

  	
  5.1.16

  	
  Intellectual Property

  	
  38

  
	
   

  	
   

  	
  5.1.17

  	
  Investment Company Act;
  Federal Power Act

  	
  38

  
	
   

  	
   

  	
  5.1.18

  	
  Employment Matters

  	
  38

  
	
   

  	
   

  	
  5.1.19

  	
  Full Disclosure

  	
  38

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CONDITIONS
  OF LENDING

  	
  39

  
	
   

  	
  6.1

  	
  Closing

  	
  39

  
	
   

  	
   

  	
  6.1.1

  	
  Deliveries

  	
  39

  
	
   

  	
   

  	
  6.1.2

  	
  Payment of Fees

  	
  40

  
	
   

  	
  6.2

  	
  Each Loan

  	
  40

  
	
   

  	
   

  	
   

  
	
  7.

  	
  COVENANTS

  	
  40

  
	
   

  	
  7.1

  	
  Affirmative Covenants

  	
  40

  
	
   

  	
   

  	
  7.1.1

  	
  Books, Records and
  Inspections

  	
  40

  

 

ii

 

	
   

  	
   

  	
  7.1.2

  	
  Insurance

  	
  41

  
	
   

  	
   

  	
  7.1.3

  	
  Payment of Taxes and
  Claims

  	
  41

  
	
   

  	
   

  	
  7.1.4

  	
  Preservation of
  Existence, etc.

  	
  41

  
	
   

  	
   

  	
  7.1.5

  	
  Good Repair

  	
  41

  
	
   

  	
   

  	
  7.1.6

  	
  Compliance with
  Statutes, Regulations, Orders, Restrictions

  	
  42

  
	
   

  	
   

  	
  7.1.7

  	
  Use of Proceeds

  	
  42

  
	
   

  	
   

  	
  7.1.8

  	
  Senior Debt

  	
  42

  
	
   

  	
   

  	
  7.1.9

  	
  Anti-Terrorism Laws

  	
  42

  
	
   

  	
  7.2

  	
  Negative Covenants

  	
  42

  
	
   

  	
   

  	
  7.2.1

  	
  Changes in Business

  	
  42

  
	
   

  	
   

  	
  7.2.2

  	
  Liens

  	
  42

  
	
   

  	
   

  	
  7.2.3

  	
  Merger, Consolidation,
  Asset Sales

  	
  43

  
	
   

  	
   

  	
  7.2.4

  	
  Fiscal Year

  	
  44

  
	
   

  	
   

  	
  7.2.5

  	
  Investments

  	
  44

  
	
   

  	
   

  	
  7.2.6

  	
  Transactions with
  Affiliates

  	
  45

  
	
   

  	
   

  	
  7.2.7

  	
  Material Agreements

  	
  45

  
	
   

  	
   

  	
  7.2.8

  	
  Use of Proceeds/Margin
  Regulations

  	
  45

  
	
   

  	
   

  	
  7.2.9

  	
  No Dividend
  Restrictions

  	
  45

  
	
   

  	
   

  	
  7.2.10

  	
  Swap Agreements

  	
  46

  
	
   

  	
   

  	
  7.2.11

  	
  Financial Covenant

  	
  46

  
	
   

  	
  7.3

  	
  Reporting Requirements

  	
  46

  
	
   

  	
   

  	
  7.3.1

  	
  Annual Financial
  Statements

  	
  46

  
	
   

  	
   

  	
  7.3.2

  	
  Quarterly Financial
  Statements

  	
  46

  
	
   

  	
   

  	
  7.3.3

  	
  Certificate of the
  Borrower

  	
  46

  
	
   

  	
   

  	
  7.3.4

  	
  Notices

  	
  47

  
	
   

  	
   

  	
   

  
	
  8.

  	
  DEFAULT

  	
  48

  
	
   

  	
  8.1

  	
  Events of Default

  	
  48

  
	
   

  	
   

  	
  8.1.1

  	
  Payments Under Loan
  Documents

  	
  48

  
	
   

  	
   

  	
  8.1.2

  	
  Breach of Warranty

  	
  48

  
	
   

  	
   

  	
  8.1.3

  	
  Breach of Negative
  Covenants or Visitation Rights

  	
  48

  
	
   

  	
   

  	
  8.1.4

  	
  Breach of Other
  Covenants

  	
  48

  
	
   

  	
   

  	
  8.1.5

  	
  Defaults in Other
  Agreements or Indebtedness

  	
  48

  
	
   

  	
   

  	
  8.1.6

  	
  Final Judgments or
  Orders

  	
  49

  
	
   

  	
   

  	
  8.1.7

  	
  Loan Document
  Unenforceable

  	
  49

  
	
   

  	
   

  	
  8.1.8

  	
  Events Relating to
  Plans and Benefit Arrangements

  	
  49

  
	
   

  	
   

  	
  8.1.9

  	
  Change of Control

  	
  49

  
	
   

  	
   

  	
  8.1.10

  	
  Relief Proceedings

  	
  49

  
	
   

  	
  8.2

  	
  Consequences of Event
  of Default

  	
  50

  
	
   

  	
   

  	
  8.2.1

  	
  Events of Default Other
  Than Bankruptcy, Insolvency or Reorganization Proceedings

  	
  50

  
	
   

  	
   

  	
  8.2.2

  	
  Bankruptcy, Insolvency
  or Reorganization Proceedings

  	
  50

  
	
   

  	
   

  	
  8.2.3

  	
  Set-off

  	
  50

  
	
   

  	
   

  	
  8.2.4

  	
  Application of Proceeds

  	
  50

  
	
   

  	
   

  	
   

  
	
  9.

  	
  THE
  ADMINISTRATIVE AGENT

  	
  51

  
	
   

  	
  9.1

  	
  Appointment and
  Authority

  	
  51

  
	
   

  	
  9.2

  	
  Rights as a Lender

  	
  51

  
	
   

  	
  9.3

  	
  Exculpatory Provisions

  	
  51

  

 

iii

 

	
   

  	
  9.4

  	
  Reliance by
  Administrative Agent

  	
  52

  
	
   

  	
  9.5

  	
  Delegation of Duties

  	
  53

  
	
   

  	
  9.6

  	
  Resignation of
  Administrative Agent

  	
  53

  
	
   

  	
  9.7

  	
  Non-Reliance on Administrative
  Agent and Other Lenders

  	
  53

  
	
   

  	
  9.8

  	
  No Other Duties, etc.

  	
  54

  
	
   

  	
  9.9

  	
  Administrative Agent’s
  Fee

  	
  54

  
	
   

  	
  9.10

  	
  No Reliance on
  Administrative Agent’s Customer Identification Program

  	
  54

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
  54

  
	
   

  	
  10.1

  	
  Modifications,
  Amendments or Waivers

  	
  54

  
	
   

  	
   

  	
  10.1.1

  	
  Increase of Commitment

  	
  54

  
	
   

  	
   

  	
  10.1.2

  	
  Extension of Payment;
  Reduction of Principal Interest or Fees; Modification of Terms of Payment

  	
  54

  
	
   

  	
   

  	
  10.1.3

  	
  Miscellaneous

  	
  55

  
	
   

  	
  10.2

  	
  No Implied Waivers;
  Cumulative Remedies

  	
  55

  
	
   

  	
  10.3

  	
  Expenses; Indemnity;
  Damage Waiver

  	
  55

  
	
   

  	
   

  	
  10.3.1

  	
  Costs and Expenses

  	
  55

  
	
   

  	
   

  	
  10.3.2

  	
  Indemnification by the
  Borrower

  	
  56

  
	
   

  	
   

  	
  10.3.3

  	
  Reimbursement by
  Lenders

  	
  56

  
	
   

  	
   

  	
  10.3.4

  	
  Waiver of Consequential
  Damages, Etc.

  	
  56

  
	
   

  	
   

  	
  10.3.5

  	
  Payments

  	
  57

  
	
   

  	
  10.4

  	
  Holidays

  	
  57

  
	
   

  	
  10.5

  	
  Notices; Effectiveness;
  Electronic Communication

  	
  57

  
	
   

  	
   

  	
  10.5.1

  	
  Notices Generally

  	
  57

  
	
   

  	
   

  	
  10.5.2

  	
  Electronic
  Communications

  	
  57

  
	
   

  	
   

  	
  10.5.3

  	
  Change of Address, Etc.

  	
  58

  
	
   

  	
  10.6

  	
  Severability

  	
  58

  
	
   

  	
  10.7

  	
  Duration; Survival

  	
  58

  
	
   

  	
  10.8

  	
  Successors and Assigns

  	
  58

  
	
   

  	
   

  	
  10.8.1

  	
  Successors and Assigns
  Generally

  	
  58

  
	
   

  	
   

  	
  10.8.2

  	
  Assignments by Lenders

  	
  59

  
	
   

  	
   

  	
  10.8.3

  	
  Register

  	
  60

  
	
   

  	
   

  	
  10.8.4

  	
  Participations

  	
  60

  
	
   

  	
   

  	
  10.8.5

  	
  Limitations upon
  Participant Rights Successors and Assigns Generally

  	
  61

  
	
   

  	
   

  	
  10.8.6

  	
  Certain Pledges; Successors
  and Assigns Generally

  	
  61

  
	
   

  	
  10.9

  	
  Confidentiality

  	
  61

  
	
   

  	
   

  	
  10.9.1

  	
  General

  	
  61

  
	
   

  	
   

  	
  10.9.2

  	
  Sharing Information
  With Affiliates of the Lenders

  	
  62

  
	
   

  	
  10.10

  	
  Counterparts; Integration;
  Effectiveness

  	
  62

  
	
   

  	
   

  	
  10.10.1

  	
  Counterparts;
  Integration; Effectiveness

  	
  62

  
	
   

  	
  10.11

  	
  CHOICE OF LAW;
  SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF
  JURY TRIAL

  	
  63

  
	
   

  	
   

  	
  10.11.1

  	
  Governing Law

  	
  63

  
	
   

  	
   

  	
  10.11.2

  	
  SUBMISSION TO JURISDICTION

  	
  63

  
	
   

  	
   

  	
  10.11.3

  	
  WAIVER OF VENUE

  	
  63

  
	
   

  	
   

  	
  10.11.4

  	
  SERVICE OF PROCESS

  	
  63

  
	
   

  	
   

  	
  10.11.5

  	
  WAIVER OF JURY TRIAL

  	
  63

  
	
   

  	
  10.12

  	
  USA Patriot Act Notice

  	
  64

  

 

iv

 

LIST OF SCHEDULES AND EXHIBITS

 

SCHEDULES

 

	
  SCHEDULE
  1.1(A)

  	
  -

  	
  PRICING
  GRID

  
	
  SCHEDULE
  1.1(B)

  	
  -

  	
  COMMITMENTS
  OF LENDERS AND ADDRESSES FOR NOTICES

  
	
  SCHEDULE
  5.1.1

  	
  -

  	
  CORPORATE
  STATUS

  
	
  SCHEDULE
  5.1.5

  	
  -

  	
  LITIGATION

  
	
  SCHEDULE
  6.1.1

  	
  -

  	
  OPINION
  OF COUNSEL

  
	
  SCHEDULE
  7.2.2

  	
  -

  	
  PERMITTED
  LIENS

  
	
  SCHEDULE
  7.2.5

  	
  -

  	
  PERMITTED
  INVESTMENTS

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  1.1(A)

  	
  -

  	
  ASSIGNMENT
  AND ASSUMPTION AGREEMENT

  
	
  EXHIBIT
  1.1(N)

  	
  -

  	
  REVOLVING
  CREDIT NOTE

  
	
  EXHIBIT
  2.4

  	
  -

  	
  LOAN
  REQUEST

  
	
  EXHIBIT
  6.1.1

  	
  -

  	
  SOLVENCY
  CERTIFICATE

  
	
  EXHIBIT 7.3.3

  	
  -

  	
  QUARTERLY COMPLIANCE
  CERTIFICATE

  

 

v

 

CREDIT AGREEMENT

 

THIS CREDIT
AGREEMENT (as may be hereafter amended from time to time, the “Agreement”) is dated as of April 21, 2009 and is made
by and among The Dayton Power and Light Company, an Ohio corporation (the “Borrower”), the LENDERS (as hereinafter defined), and PNC
BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent for the
Lenders under this Agreement (hereinafter referred to in such capacity as the “Administrative Agent”).

 

The Borrower has requested the Lenders to provide a revolving credit
facility to the Borrower in an aggregate principal amount not to exceed
$100,000,000.  In consideration of their
mutual covenants and agreements hereinafter set forth and intending to be
legally bound hereby, the parties hereto covenant and agree as follows:

 

1.     CERTAIN DEFINITIONS

 

1.1       Certain Definitions.  In addition to words and terms defined
elsewhere in this Agreement, the following words and terms shall have the
following meanings, respectively, unless the context hereof clearly requires
otherwise:

 

Acquisition shall mean any acquisition (a) on a going
concern basis (whether by purchase, lease or otherwise) of assets constituting
a business or a division or line of business of a Person that is not a
Subsidiary of the Borrower, and (b) of a majority of the outstanding
equity or other similar interests in any such Person (whether by merger, stock
purchase or otherwise).

 

Administrative Agent shall mean PNC
Bank, National Association, and its successors and assigns.

 

Administrative Agent’s Fee shall have the
meaning specified in Section 9.9 [Administrative
Agent’s Fee].

 

Administrative Agent’s
Letter shall have the meaning specified in Section 9.9 [Administrative Agent’s Fee].

 

Affiliate shall mean as
to any Person any other Person (i) which directly or indirectly controls,
is controlled by, or is under common control with such Person, (ii) which
beneficially owns or holds 10% or more of any class of the voting or other
equity interests of such Person, or (iii) 10% or more of any class of voting
interests or other equity interests of which is beneficially owned or held,
directly or indirectly, by such Person.

 

Anti-Terrorism Laws shall mean any
Laws relating to terrorism or money laundering, including Executive Order No. 13224,
the USA Patriot Act, the Laws comprising or implementing the Bank Secrecy Act,
and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be
amended, renewed, extended, or replaced).

 

 

Applicable Facility Fee Rate shall mean the
percentage rate per annum based on the Ratings then in effect according to the
pricing grid on Schedule 1.1(A) below the heading “Facility Fee.”

 

Applicable Margin shall mean, as
applicable:

 

(A)          the percentage spread to be added to the Base Rate
applicable to Loans under the Base Rate Option based on the Ratings then in
effect according to the pricing grid on Schedule 1.1(A) below the
heading “Revolving Credit Base Rate Spread”, or

 

(B)           the percentage spread to be added to the LIBOR Rate
applicable to Loans under the LIBOR Rate Option based on the Ratings then in
effect according to the pricing grid on Schedule 1.1(A) below the
heading “Revolving Credit LIBOR Rate Spread”.

 

Approved Fund shall mean any
fund that is engaged in making, purchasing, holding or investing in bank loans
and similar extensions of credit in the ordinary course of business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

 

Asset Sale shall mean the
sale, transfer or other disposition (including by means of Sale and Lease-Back
Transactions, and by means of mergers, consolidations, and liquidations of a
corporation, partnership or limited liability company of the interests therein
of the Borrower or any of its Subsidiaries) by the Borrower or any of its
Subsidiaries to any Person of any of their respective assets, provided that the term Asset Sale specifically excludes any
sales, transfers or other dispositions of inventory, or obsolete or excess
furniture, fixtures, equipment or other Property, real or personal, tangible or
intangible, in each case in the ordinary course of business.

 

Assignment and Assumption  shall mean an assignment
and assumption entered into by a Lender and an assignee permitted under Section 10.8
[Successors and Assigns], in substantially the form of Exhibit 1.1(A).

 

Authorized Officer shall mean the
Chief Executive Officer, President, Chief Financial Officer, Treasurer or
Assistant Treasurer of the Borrower or any officer of the Borrower who succeeds
to all or substantially all of the responsibilities of such officers or such
other individuals, designated by written notice to the Administrative Agent
from the Borrower, authorized to execute notices, reports and other documents
on behalf of the Borrower required hereunder. 
The Borrower may amend such list of individuals from time to time by
giving written notice of such amendment to the Administrative Agent.

 

Base Rate shall mean, for any day, a
fluctuating per annum rate of interest equal to the highest of (a) the
Federal Funds Open Rate plus 0.5%, and (b) the Prime Rate, and (c) the
Daily LIBOR Rate, plus 100 basis points (1.0%).  Any change in the Base Rate (or any component
thereof) shall take effect at the opening of business on the day such change
occurs.

 

Base Rate Option shall mean the
option of the Borrower to have Loans bear interest at the rate and under the
terms set forth in Section 3.1.1(i) [Revolving Credit Base Rate
Option].

 

2

 

Borrower shall have the
meaning set forth in preamble hereto.

 

Borrowing Date shall mean,
with respect to any Loan, the date for the making thereof or the renewal or
conversion thereof at or to the same or a different Interest Rate Option, which
shall be a Business Day.

 

Borrowing Tranche shall mean
specified portions of Loans outstanding as follows:  (i) any Loans to which a LIBOR Rate
Option applies which become subject to the same Interest Rate Option under the
same Loan Request by the Borrower and which have the same Interest Period shall
constitute one Borrowing Tranche, and (ii) all Loans to which a Base Rate
Option applies shall constitute one Borrowing Tranche.

 

Business Day shall mean any
day other than a Saturday or Sunday or a legal holiday on which commercial
banks are authorized or required to be closed for business in Pittsburgh,
Pennsylvania and if the applicable Business Day relates to any Loan to which
the LIBOR Rate Option applies, such day must also be a day on which dealings
are carried on in the London interbank market.

 

Capital Lease shall mean, as applied to any Person, any
lease of any Property (whether real, personal or mixed) by such Person, as
lessee, that, in conformity with GAAP, is accounted for as a capital lease on
the balance sheet of that Person.

 

Capitalized Lease Obligations shall mean all obligations
under Capital Leases of the Borrower or any of its Subsidiaries in each case
taken at the amount thereof accounted for as liabilities and identified as “capital
lease obligations” (or any similar words) on a consolidated balance sheet of
the Borrower and its Subsidiaries prepared in accordance with GAAP.

 

Cash Equivalents shall mean any of the following:

 

(a)           securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality
thereof (provided that the full faith and credit
of the United States of America is pledged in support thereof) having
maturities of not more than one year from the date of acquisition;

 

(b)           Dollar denominated time deposits, certificates of
deposit and bankers’ acceptances of (i) any Lender or (ii) any bank
whose short-term commercial paper rating from (A) S&P is at least A-1
or the equivalent thereof or from (B) Moody’s is at least P-1 or the
equivalent thereof (any such bank, an “Approved Bank”), in each case
with maturities of not more than three months from the date of acquisition;

 

(c)           commercial paper issued by any Lender or Approved
Bank or by the parent company of any Lender or Approved Bank and commercial
paper issued by, or guaranteed by, any industrial or financial company with a
short- term commercial paper rating of at least A-1 or the equivalent thereof
by S&P or at least P-1 or the equivalent thereof by Moody’s, or guaranteed
by any industrial company with a long term unsecured debt rating of at least A
or A2, or the equivalent of each thereof, from S&P or Moody’s, as the case
may be, and in each case maturing within 90 days after the date of acquisition;

 

3

 

(d)           investments in money market funds substantially all
the assets of which are comprised of securities of the types described in
clauses (a) through (c) above; and

 

(e)           investments in money market funds access to which is
provided as part of “sweep” accounts maintained with a Lender or an Approved
Bank.

 

CERCLA shall mean the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as the same may be amended
from time to time, 42 U.S.C. § 9601 et seq.

 

Change in Law shall mean the
occurrence, after the date of this Agreement, of any of the following: (a) the
adoption or taking effect of any Law, (b) any change in any Law or in the
administration, interpretation or application thereof by any Official Body or (c) the
making or issuance of any request, guideline or directive (whether or not
having the force of Law) by any Official Body.

 

Change of Control shall mean any
of the following:

 

(a)           during any 12-month period (or, if less, during the
period beginning on the Closing Date and ending on the date of determination),
individuals who at the beginning of such period constituted the Parent’s  Board of Directors (together with any new directors whose
election by the Parent’s Board of Directors or whose nomination for election by
the Parent’s  shareholders was approved by a
vote of a majority of the directors who either were directors at the beginning
of such period or whose election or nomination was previously so approved)
cease for any reason to constitute a majority of the Board of Directors of the
Parent;

 

(b)           any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the 1934 Act, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the 1934 Act, except that a person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the
right to acquire (such right, an “option right”), whether such
right is exercisable immediately or only after the passage of time), directly
or indirectly, of 20% or more of the equity securities of the Parent entitled
to vote for members of the board of directors or equivalent governing body of
the Parent on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right); or

 

(c)           the Parent shall cease to own, free and clear of all
Liens and other encumbrances and on a fully diluted basis, 100% of the
outstanding shares of all classes of stock of the Borrower ordinarily having
the right to vote at an election of directors, or any contingency shall occur
that causes any class of stock of the Borrower, the shares of which are not
owned by the Parent, to have the right to vote at an election of directors.

 

Closing Date shall mean April 21,
2009.

 

4

 

Code shall mean the
Internal Revenue Code of 1986, as the same may be amended or supplemented from
time to time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.

 

Commitment shall mean as
to any Lender its Revolving Credit Commitment, and Commitments shall
mean the aggregate of the Revolving Credit Commitments of all of the Lenders.

 

Compliance Certificate shall have the
meaning specified in Section 7.3.3 [Certificate of the Borrower].

 

Consolidated Net Income shall mean, for any period,
the net income (or loss), without deduction for minority interests, of the
Borrower and its Subsidiaries on a consolidated basis for such period taken as
a single accounting period determined in conformity with GAAP.

 

Consolidated Net Worth shall mean, at any time,
all amounts that, in conformity with GAAP, would be included under the caption “total
stockholders’ equity” (or any like caption) on a consolidated
balance sheet of the Borrower as of such time, provided
that in no event shall Consolidated Net Worth include any amounts in respect of
Redeemable Stock.

 

Consolidated Tangible Assets shall mean at any time the
consolidated total assets of the Borrower and its Subsidiaries calculated on a
consolidated basis as of such time, but excluding therefrom goodwill, patents,
patent applications, permits, trademarks, trade names, copyrights, licenses,
franchises, experimental expense, organizational expense, unamortized debt
discount and expense, the excess of cost of shares acquired over book value of
related assets and such other assets that are properly classified as “intangible
assets” in accordance with GAAP.

 

Consolidated Total Capitalization shall mean the sum of
Consolidated Total Debt and Consolidated Net Worth and, to the extent not otherwise included, preferred stock of the
Borrower.

 

Consolidated Total Debt shall mean the sum (without
duplication) of all Indebtedness of the Borrower and of each of its
Subsidiaries, all as determined on a consolidated basis.

 

Controlled Group shall mean all
members of a controlled group of corporations or other business entities and
all trades or businesses (whether or not incorporated) under common control
that, together with the Borrower or any of its Subsidiaries, are treated as a
single employer under Section 414 of the Code.

 

Daily LIBOR Rate shall mean,
for any day, the rate per annum determined by the Administrative Agent by
dividing (a) the Published Rate by (b) a number equal to 1.00 minus
the LIBOR Reserve Percentage on such day.

 

Defaulting Lender  shall mean any Lender
that (a) has failed to fund any portion of the Loans required to be funded
by it hereunder within one Business Day of the date required to be funded by it
hereunder unless such failure has been cured and all interest accruing as a
result of such failure has been fully paid in accordance with the terms hereof,
(b) has otherwise failed 

 

5

 

to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or unless such failure has been cured and all
interest accruing as a result of such failure has been fully paid in accordance
with the terms hereof, or (c) has since the date of this Agreement been
deemed insolvent by an Official Body or become the subject of a bankruptcy, receivership,
conservatorship or Relief Proceeding of such Lender.

 

Delinquent Lender shall have the
meaning specified in Section 4.3 [Sharing of Payments by Lenders].

 

Dollar, Dollars, U.S.
Dollars and the symbol $ shall mean lawful money of the United States
of America.

 

Energy-Related Business shall mean any
business engaged in or directly related to: 
(a) the production, sale, brokerage, management, transportation,
delivery or other provision of energy products, including but not limited to,
electricity, natural gas, oil, coal, propane and renewable energy producing
materials, (b) the provision of energy conservation services, including,
but not limited to, energy audits, installation of energy conservation devices,
energy efficient equipment and related systems, (c) the provision of
services and equipment in connection with the procurement of such energy
products or conservation of energy, (d) engineering, consulting,
construction, operational or maintenance services in connection with such
energy products, the conservation of energy or with equipment utilizing such
energy products or (e) the manufacturing of equipment used in connection
with energy production or conservation.

 

Environmental Claims shall mean any and all
administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of non-compliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued
under any such law, including, without limitation, (a) any and all claims
by governmental or regulatory authorities for enforcement, cleanup, removal,
response, remedial or other actions or damages pursuant to any applicable
Environmental Law, and (b) any and all claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from the storage, treatment or Release (as defined
in CERCLA) of any Hazardous Materials or arising from alleged injury or threat
of injury to health, safety or the environment.

 

Environmental Law shall mean any applicable Federal, state,
foreign or local statute, law, rule, regulation, ordinance, code, binding and
enforceable guideline, binding and enforceable written policy and rule of
common law now or hereafter in effect and in each case as amended, and any
binding and enforceable judicial or administrative interpretation thereof,
including, without limitation, any judicial or administrative order, consent,
decree or judgment issued to or rendered against the Borrower or any of its
Subsidiaries relating to the environment, employee health and safety or
Hazardous Materials, including, without limitation, CERCLA; RCRA; the Federal
Water Pollution Control Act, 33 U.S.C. § 1251 et seq.;
the Clean Air Act, 42 U.S.C. § 7401 et seq.; the
Safe Drinking Water Act, 42 U.S.C. § 300f et seq.;
the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.;
the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. §
11001 et seq., the Hazardous Material
Transportation Act, 49 

 

6

 

U.S.C.
§ 5101 et seq. and the Occupational
Safety and Health Act, 29 U.S.C. § 651 et seq. (to
the extent it regulates occupational exposure to Hazardous Materials); and any
state and local or foreign counterparts or equivalents, in each case as amended
from time to time.

 

ERISA shall mean the
Employee Retirement Income Security Act of 1974, as the same may be amended or
supplemented from time to time, and any successor statute of similar import,
and the rules and regulations thereunder, as from time to time in effect.

 

Event of Default shall mean any
of the events described in Section 8.1 [Events of Default] and referred to
therein as an “Event of Default.”

 

Excluded Taxes shall mean,
with respect to the Administrative Agent, any Lender, or any other recipient of
any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the
Borrower is located, (c) in the case of a Foreign Lender, any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party hereto (or designates a new lending office) or
is attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with Section 4.8.5 [Status of
Lenders], except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 4.8.1 [Payment Free of Taxes] and (d) any
U.S. federal backup withholding tax that is imposed under Section 3046 of
the Internal Revenue Code as a result of (i) the failure of any Lender to
provide the Borrower with a duly completed valid Form W-9 or other form
prescribed by Applicable Law for that purpose that includes its correct
taxpayer identification number or (ii) notification from the Internal
Revenue Service that such Lender has underreported interest income.

 

Executive Order No. 13224 shall mean the
Executive Order No. 13224 on Terrorist Financing,  effective September 24, 2001, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.

 

Expiration Date shall mean,
with respect to the Commitments, April 20, 2010.

 

Facility Fees shall mean the
fees referred to in Sections 2.3 [Facility Fees].

 

Federal Funds Effective Rate for any day
shall mean the rate per annum (based on a year of 360 days and actual days
elapsed and rounded upward to the nearest 1/100 of 1%) announced by the Federal
Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by
federal funds brokers on the previous trading day, as computed and announced by
such Federal Reserve Bank (or any successor) in substantially the same manner
as such Federal Reserve Bank computes and announces the weighted average it
refers to as the “Federal Funds Effective Rate” 

 

7

 

as of the date of this
Agreement; provided, if such Federal Reserve Bank (or its successor)
does not announce such rate on any day, the “Federal Funds Effective Rate” for
such day shall be the Federal Funds Effective Rate for the last day on which
such rate was announced.

 

Federal Funds Open Rate for any day
shall mean the rate per annum (based on a year of 360 days and actual days
elapsed) which is the daily federal funds open rate as quoted by ICAP North
America, Inc. (or any successor) as set forth on the  Bloomberg Screen BTMM for that day opposite
the caption “OPEN” (or on such other substitute Bloomberg Screen that displays
such rate), or as set forth on such other recognized electronic source used for
the purpose of displaying such rate as selected by the Administrative Agent (an
“Alternate Source”) (or if such rate for such day does not appear on the
Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or
if there shall at any time, for any reason, no longer exist a Bloomberg Screen
BTMM (or any substitute screen) or any Alternate Source, a comparable
replacement rate determined by the Administrative Agent at such time (which
determination shall be conclusive absent manifest error); provided however,
that if such day is not a Business Day, the Federal Funds Open Rate for such
day shall be the “open” rate on the immediately preceding Business Day.  If and when the Federal Funds Open Rate
changes, the rate of interest with respect to any advance to which the Federal
Funds Open Rate applies will change automatically without notice to the
Borrower, effective on the date of any such change.

 

Fitch shall mean Fitch Investors Service Inc. and its
successors.

 

Fitch Rating shall mean, on any date of determination, the
rating accorded the Borrower’s senior unsecured long-term debt by Fitch (or if
the Obligations are secured, the rating accorded to the Borrower’s senior
secured long-term debt by Fitch), or if such rating is unavailable, the
Borrower’s long-term issuer default rating accorded to it by Fitch.

 

Foreign Lender shall mean any
Lender that is organized under the Laws of a jurisdiction other than that in
which the Borrower is resident for tax purposes.  For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

 

FPA shall mean the Federal Power Act, as amended, and
all rules and regulations promulgated thereunder.

 

GAAP shall mean
generally accepted accounting principles as are in effect from time to time,
subject to the provisions of Section 1.3 [Accounting Principles], and
applied on a consistent basis both as to classification of items and amounts.

 

Guaranty Obligations shall mean as to any Person
(without duplication) any obligation of such Person guaranteeing any
Indebtedness (“primary Indebtedness”) of any other
Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of such
Person, whether or not contingent, (a) to purchase any such primary
Indebtedness or any Property constituting direct or indirect security therefor,
(b) to advance or supply funds (i) for the purchase or payment of any
such primary Indebtedness or (ii) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (c) to purchase Property, securities or
services 

 

8

 

primarily
for the purpose of assuring the owner of any such primary Indebtedness of the
ability of the primary obligor to make payment of such primary Indebtedness, or
(d) otherwise to assure or hold harmless the owner of such primary
Indebtedness against loss in respect thereof, provided,
however, that the term Guaranty Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guaranty
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary Indebtedness in respect of which such Guaranty Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.

 

Hazardous Materials shall mean (a) any
petrochemical or petroleum products, radioactive materials, asbestos in any
form that is or could become friable, urea formaldehyde foam insulation,
transformers or other equipment that contain dielectric fluid containing levels
of polychlorinated biphenyls, and radon gas; and (b) any chemicals,
materials or substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “restricted
hazardous materials”, “extremely hazardous wastes”, “restrictive
hazardous wastes”, “toxic substances”, “toxic
pollutants”, “contaminants” or “pollutants”, or words of
similar meaning and regulatory effect, under any applicable Environmental Law.

 

Indebtedness shall mean, with respect to any Person, all of the
following (without duplication):

 

(a)           all indebtedness of such Person for borrowed money;

 

(b)           all bonds, notes, debentures and similar debt
securities of such Person;

 

(c)           the deferred purchase price of capital assets or
services that in accordance with GAAP would be shown on the liability side of
the balance sheet of such Person;

 

(d)           non-contingent obligations to reimburse any other
Person in respect of amounts paid under a letter of credit or similar
instrument to the extent that such reimbursement obligations remain outstanding
after such obligations become non-contingent;

 

(e)           all obligations, contingent or otherwise, of such
Person in respect of bankers’ acceptances;

 

(f)            all Indebtedness of a second Person secured by any
Lien on any Property owned by such first Person, whether or not such
Indebtedness has been assumed;

 

(g)           all Capitalized Lease Obligations of such Person;

 

(h)           the present value, determined on the basis of the
implicit interest rate, of all basic rental obligations under all Synthetic
Leases of such Person;

 

(i)            the full outstanding balance of trade receivables,
notes or other instruments sold with full recourse (and the portion thereof
subject to potential recourse, if sold with limited recourse), other than in
any such case any thereof sold solely for purposes of collection of delinquent
accounts;

 

9

 

(j)            the stated value, or liquidation value if higher, of
all Redeemable Stock of such Person; and

 

(k)           all Guaranty Obligations of such Person;

 

provided, however, that (i) neither trade payables nor
other similar accrued expenses, in each case arising in the ordinary course of
business, nor obligations in respect of insurance policies or performance or
surety bonds that themselves are not guarantees of Indebtedness (nor drafts,
acceptances or similar instruments evidencing the same nor obligations in
respect of letters of credit supporting the payment of the same), shall
constitute Indebtedness; and (ii) the Indebtedness of any Person shall in
any event include (without duplication) the Indebtedness of any other entity
(including any general partnership in which such Person is a general partner)
to the extent such Person is liable thereon as a result of such Person’s
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness provide expressly that such Person is not
liable thereon.

 

Indemnified Taxes shall mean
Taxes other than Excluded Taxes.

 

Indemnitee shall have the
meaning specified in Section 10.3.2 [Indemnification by the Borrower].

 

Information shall mean any
and all non-public information received from, or made available by, the
Borrower or any of its Subsidiaries or any of their respective boards of
directors, officers, employees or other representatives relating to the
Borrower or any of such Subsidiaries or any of their respective businesses or
Affiliates or Affiliates’ businesses.

 

Interest Period shall mean the
period of time selected by the Borrower in connection with (and to apply to)
any election permitted hereunder by the Borrower to have Loans bear interest
under the LIBOR Rate Option.  Subject to
the last sentence of this definition, such period shall be one, two, three or
six Months.  Such Interest Period shall
commence on the effective date of such Interest Rate Option, which shall be (i) the
Borrowing Date if the Borrower is requesting new Loans, or (ii) the date
of renewal of or conversion to the LIBOR Rate Option if the Borrower is
renewing or converting to the LIBOR Rate Option applicable to outstanding
Loans.  Notwithstanding the second
sentence hereof: (A) any Interest Period which would otherwise end on a
date which is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day,
and (B) the Borrower shall not select, convert to or renew an Interest
Period for any portion of the Loans that would end after the Expiration Date.

 

Investment shall mean (a) any direct or indirect purchase
or other acquisition by the Borrower or any of its Subsidiaries of any of the
capital stock or other equity interest of any other Person, including any
partnership or joint venture interest in such Person; (b) any loan or
advance to, guarantee or assumption of debt or purchase or other acquisition of
any other debt (other than accounts receivable and lease, utility or other
deposits arising in the ordinary course of business on terms customary in the
trade) of, any Person by the Borrower or any of its Subsidiaries; or (c) any
purchase or other acquisition (in one transaction or a series of

 

10

 

transactions)
of assets of another Person that constitute a business unit or all or a
substantial part of the business of, such Person.

 

Interest Rate Option shall mean any
LIBOR Rate Option or Base Rate Option.

 

IRS shall mean the
Internal Revenue Service.

 

Law shall mean any
law (including common law), constitution, statute, treaty, regulation, rule,
ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,
judgment, authorization or approval, lien or award by or settlement agreement
with any Official Body.

 

Leaseholds shall mean,
with respect to any Person, all the right, title and interest of such Person as
lessee or licensee in, to and under leases or licenses of land, improvements
and/or fixtures.

 

Lender Provided Swap shall mean any
Swap provided pursuant to a Swap Agreement to the Borrower which is provided by
any Lender or its Affiliate and with respect to which the Administrative Agent
confirms: (i) is documented in a standard International Swap Dealer Association
Agreement, (ii) provides for the method of calculating the reimbursable amount
of the provider’s credit exposure in a reasonable and customary manner, and (iii)
is entered into for hedging (rather than speculative) purposes.

 

Lenders shall mean the
financial institutions named on Schedule 1.1(B) and their respective
successors and assigns as permitted hereunder, each of which is referred to
herein as a Lender.

 

LIBOR Rate shall mean,
with respect to the Loans comprising any Borrowing Tranche to which the LIBOR
Rate Option applies for any Interest Period, the interest rate per annum
determined by the Administrative Agent by dividing (the resulting quotient
rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate which appears on the Bloomberg Page BBAM1 (or on such other substitute
Bloomberg page that displays rates at which US dollar deposits are offered by
leading banks in the London interbank deposit market), or the rate which is
quoted by another source selected by the Administrative Agent which has been
approved by the British Bankers’ Association as an authorized information
vendor for the purpose of displaying rates at which US dollar deposits are
offered by leading banks in the London interbank deposit market (a “LIBOR
Alternate Source”), at approximately 11:00 a.m. London time, two (2) Business
Days prior to the commencement of such Interest Period as the London interbank
offered rate for U.S. Dollars for an amount comparable to such Borrowing
Tranche and having a borrowing date and a maturity comparable to such Interest
Period (or if there shall at any time, for any reason, no longer exist a
Bloomberg Page BBAM1 (or any substitute page) or any LIBOR Alternate Source, a
comparable replacement rate determined by the Administrative Agent at such time
(which determination shall be conclusive absent manifest error)), by (ii) a
number equal to 1.00 minus the LIBOR Reserve Percentage.  LIBOR may also be expressed by the following
formula:

 

11

 

Average
of London interbank offered rates quoted 

by Bloomberg or appropriate successor as shown on

 

	
  LIBOR
  =

  	
   

  	
  Bloomberg
  Page BBAM1

  	
   

  
	
   

  	
   

  	
  1.00
  - LIBOR Reserve Percentage

  	
   

  

 

The LIBOR Rate shall be adjusted with respect
to any Loan to which the LIBOR Rate Option applies that is outstanding on the
effective date of any change in the LIBOR Reserve Percentage as of such
effective date.  The Administrative Agent
shall give prompt notice to the Borrower of the LIBOR Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error.

 

LIBOR Rate Option shall mean the
option of the Borrower to have Loans bear interest at the rate and under the
terms set forth in Section 3.1.1(ii) [Revolving Credit LIBOR Rate Option].

 

LIBOR Reserve Percentage shall mean as
of any day the maximum percentage in effect on such day, as prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the reserve requirements (including supplemental, marginal and
emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”).

 

Lien shall mean any
mortgage, deed of trust, pledge, lien, security interest, charge or other
encumbrance or security arrangement of any nature whatsoever, whether
voluntarily or involuntarily given, including any conditional sale or title
retention arrangement, and any assignment, deposit arrangement or lease
intended as, or having the effect of, security and any filed financing statement
or other notice of any of the foregoing (whether or not a lien or other
encumbrance is created or exists at the time of the filing).

 

Loan Documents shall mean
this Agreement, the Administrative Agent’s Letter, the Notes and any other
instruments, certificates or material documents delivered in connection
herewith or therewith.

 

Loan Request shall have the
meaning specified in Section 2.4 [Revolving Credit Loan Requests].

 

Loans shall mean
collectively and Loan shall mean separately all Revolving Credit Loans
or any Revolving Credit Loan.

 

Margin Stock shall have the meaning provided in Regulation U.

 

Material Adverse Effect shall mean any
set of circumstances or events which (a) has any material adverse effect
whatsoever upon the validity or enforceability of this Agreement or any other
Loan Document, (b) is expected to be material and adverse to the business,
properties, assets, financial condition, results of operations or prospects of
the Borrower and its Subsidiaries, taken as a whole, (c) impairs
materially the ability of the Borrower and its Subsidiaries, taken as a
whole to pay any liabilities or obligations as they mature or become due, or (d) impairs
materially the ability of the Administrative Agent or any of 

 

12

 

the Lenders, to the extent
permitted, to enforce their legal remedies pursuant to this Agreement or any
other Loan Document.

 

Month, with respect
to an Interest Period under the LIBOR Rate Option, shall mean the interval
between the days in consecutive calendar months numerically corresponding to
the first day of such Interest Period. 
If any LIBOR Rate Interest Period begins on a day of a calendar month
for which there is no numerically corresponding day in the month in which such
Interest Period is to end, the final month of such Interest Period shall be
deemed to end on the last Business Day of such final month.

 

Moody’s shall mean Moody’s Investors Service, Inc. and its
successors.

 

Moody’s Rating shall mean, on any date of determination,
the rating accorded the Borrower’s senior unsecured long-term debt by Moody’s
(or if the Obligations are secured, the rating accorded to the Borrower’s
senior secured long-term debt by Moody’s), or if such rating is unavailable,
the Borrower’s long-term issuer credit rating accorded to it by Moody’s.

 

Multiemployer Plan shall mean a Plan
maintained pursuant to a collective bargaining agreement or any other
arrangement as to which the Borrower or any member of the Controlled Group is a
party to which more than one employer is obligated to make contributions.

 

1933 Act shall mean the Securities Act of 1933, as amended.

 

1934 Act shall mean the Securities Exchange Act of 1934, as
amended.

 

Non-Consenting Lender shall have the
meaning specified in Section 10.1 [Modifications, Amendments or Waivers].

 

Notes shall mean the
promissory notes in the form of Exhibit 1.1(N) evidencing the Loans.

 

Notices shall have the
meaning specified in Section 10.5 [Notices; Effectiveness; Electronic
Communication].

 

Obligation shall mean any
obligation or liability of the Borrower, howsoever created, arising
or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due, under or in connection with (i) this
Agreement, the Notes,  the
Administrative Agent’s Letter or any other Loan Document whether to the
Administrative Agent, any of the Lenders or their Affiliates or other persons
provided for under such Loan Documents, (ii) any Lender Provided Swap and (iii)
any Other Lender Provided Financial Service Products.

 

Official Body shall mean the
government of the United States of America or any other nation, or of any
political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

13

 

Operating Lease shall mean, with respect to any Person, any
lease of any Property (whether real, personal or mixed) by such Person as
lessee that, in conformity with GAAP, is not accounted for as a Capital Lease
on the balance sheet of such Person.

 

Other Lender Provided
Financial Service Products shall mean agreements or
other arrangements under which any Lender or Affiliate of a Lender provides any
of the following products or services to the Borrower: (a) credit
cards, (b) credit card processing services, (c) debit cards, (d) purchase
cards, (e) ACH Transactions, (f) cash management, including controlled
disbursement, accounts or services, or (g) foreign currency exchange.

 

Other Taxes shall mean all
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement or any other Loan Document.

 

Parent shall mean DPL Inc., an Ohio corporation.

 

Participant has the
meaning specified in Section 10.8.4 [Participations].

 

Payment Date shall mean the
first day of each calendar quarter after the date hereof and on the Expiration
Date or upon acceleration of the Notes.

 

Payment In Full shall mean
payment in full in cash of the Loans and other Obligations hereunder and the
termination of the Commitments.

 

PBGC shall mean the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA or any successor.

 

Permitted Acquisition shall mean and include any
Acquisition as to which all of the following conditions are satisfied:  (a) such Acquisition (i) involves a line or lines
of an Energy-Related Business, and (ii) involves a Person or a line or lines of
business that are located and operated in the United States; (b) no Potential
Default or Event of Default shall exist prior to or immediately after giving
effect to such Acquisition; (c) such Acquisition is not being consummated on a
hostile basis and has been approved by the Board of Directors of the target
Person and no material challenge to such Acquisition shall be pending or
threatened by any shareholder or director of the seller or Person to be
acquired, and (d) as of the date of the consummation of such Acquisition, all
approvals required in connection therewith shall have been obtained.

 

Permitted Liens shall mean Liens permitted by Section 7.2.2
[Liens].

 

Permitted Restrictive Covenant shall mean (a) any covenant
or restriction contained in this Agreement, (b) any covenant or restriction
contained in any other agreement that is less burdensome than any covenant or
restriction contained in this Agreement, (c) in the case of transfers by any
Subsidiary of the Borrower to the Borrower or another Subsidiary of the
Borrower of any property or assets, any agreement setting forth customary
restrictions on the subletting, assignment or transfer of any property or asset
that is a lease, license or conveyance 

 

14

 

of
similar property or assets; (d) in the case of transfers by any Subsidiary of
the Borrower to the Borrower or another Subsidiary of the Borrower of any
property or assets, any agreement with the holder of a Lien otherwise permitted
to exist under Section 7.2.2(v)(2) restricting on customary terms the transfer
of any property or assets subject thereto; (e) any agreement evidencing or
setting forth the terms of any refunding, refinancing or replacement
Indebtedness the incurrence of which is not prohibited by this Agreement that
contains any such restrictions to the extent such restrictions are no less
favorable to the Borrower or any of its Subsidiaries or to the rights or
interest of the Lenders than the terms in effect in the Indebtedness being so
refunded, refinanced or replaced immediately prior to such refunding,
refinancing or replacement; (f) any agreement that has been entered into by the
Borrower or any of its Subsidiaries for the sale, lease, transfer or other
disposition of any of its property or assets so long as such sale, lease,
transfer or other disposition is otherwise permitted to be made under Section 7.2.3
[Merger, Consolidation, Asset Sales]; and (g) any agreement evidencing
Indebtedness outstanding on the date a Person first becomes a Subsidiary of the
Borrower; provided, that such agreement was not
created in contemplation of the purchase or other acquisition of such Person by
the Borrower or any of its Subsidiaries and does not extend to or cover any
property or assets other than the property or assets of the Person becoming
such Subsidiary.

 

Plan shall mean an
employee pension benefit plan that is covered by Title IV of ERISA or subject
to minimum funding standards under Section 412 of the Code as to which the
Borrower or any member of the Controlled Group may have any liability.

 

Person shall mean any
individual, corporation, partnership, limited liability company, association,
joint-stock company, trust, unincorporated organization, joint venture,
government or political subdivision or agency thereof, or any other entity.

 

PNC shall mean PNC
Bank, National Association, its successors and assigns.

 

Potential Default shall mean any
event or condition which with notice or passage of time, or both, would
constitute an Event of Default.

 

Prime Rate shall mean the
interest rate per annum announced from time to time by the Administrative Agent
at its Principal Office as its then prime rate, which rate may not be the
lowest or most favorable rate then being charged commercial borrowers or others
by the Administrative Agent.  Any change
in the Prime Rate shall take effect at the opening of business on the day such
change is announced.

 

Principal Office shall mean the
main banking office of the Administrative Agent in Pittsburgh, Pennsylvania.

 

Property shall mean, with respect to any Person, any and all
property, whether real, personal, tangible, intangible, or mixed, of such
Person, or other assets owned, leased or operated by such Person.

 

Published Rate shall mean the rate of interest published
each Business Day in The Wall Street Journal
“Money Rates” listing under the caption “London
Interbank Offered Rates” for a one month period (or, if no such rate
is published therein for any reason, then the Published 

 

15

 

Rate
shall be the eurodollar rate for a one month period as published in another
publication selected by the Administrative Agent).

 

Ratable Share shall mean the
proportion that a Lender’s Commitment bears to the Commitments of all of the
Lenders.  If the Commitments have
terminated or expired, the Ratable Shares shall be determined based upon the
Commitments most recently in effect, giving effect to any assignments.

 

Rating Agency shall mean any of Fitch, Moody’s or S&P.

 

Ratings shall mean any of Fitch Ratings, Moody’s Ratings or
S&P Ratings.

 

RCRA shall mean the Resource Conservation and Recovery
Act, as the same may be amended from time to time, 42 U.S.C. § 6901 et seq.

 

Real Property shall mean, with respect to any Person, all
of the right, title and interest of such Person in and to land, improvements
and fixtures, including Leaseholds.

 

Redeemable Stock shall mean, with respect to any Person, any
capital stock or similar equity interests of such Person that (a) is by its
terms subject to mandatory redemption, in whole or in part, pursuant to a
sinking fund, scheduled redemption or similar provisions, at any time prior to
the latest Expiration Date; or (b) otherwise is required to be repurchased or
retired on a scheduled date or dates, upon the occurrence of any event or
circumstance, at the option of the holder or holders thereof, or otherwise, at
any time prior to the latest Expiration Date under this Agreement, other than
any such repurchase or retirement occasioned by a “change of control” or
similar event.

 

Regulation U shall mean Regulation U of the Board of Governors
of the Federal Reserve System as from time to time in effect and any successor
to all or a portion thereof establishing margin requirements.

 

Related Parties shall mean,
with respect to any Person, such Person’s Affiliates and the partners,
directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates.

 

Relief Proceeding shall mean any
proceeding seeking a decree or order for relief for any Person in a voluntary
or involuntary case under any applicable bankruptcy, insolvency, reorganization
or other similar law now or hereafter in effect, or for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of such Person for any substantial part of
its property, or for the winding-up or liquidation of its affairs, or an
assignment for the benefit of its creditors. 
Unless otherwise expressly provided, all references used in this
definition to “Person” shall mean the Borrower and/or its Subsidiaries.

 

Reportable Event shall mean a reportable event as defined in Section
4043 of ERISA and the regulations issued under such section, with respect a
Plan, excluding, however, such events as to which the PBGC has by regulations
waived the requirement of Section 4043(a) of ERISA that it be notified within
30 days of the occurrence of such event; provided, however,

 

16

 

that
a failure to meet the minimum funding standard of Section 412 of the Code and
of Section 302 of ERISA shall be a Reportable Event regardless of the issuance
any such waiver of the notice requirement in accordance with either Section 4043(a)
of ERISA or Section 412(d) of the Code.

 

Required Lenders shall mean

 

(A)                              If there exists fewer than
three (3) Lenders, all Lenders (other than any Defaulting Lender), and

 

(B)                                If there exist three (3) or
more Lenders:

 

(i)                                     if there are no Loans
outstanding, Lenders (excluding each Defaulting Lender) whose Commitments aggregate
at least 51% of the Commitments of all of the Lenders, or

 

(ii)                                  if there are Loans
outstanding, any group of Lenders if the sum of the Loans of such group of
Lenders (excluding each Defaulting Lender) then outstanding aggregates at least
51% of the total principal amount of all of the Loans of all of the Lenders
(excluding each Defaulting Lender) then outstanding.

 

Revolving Credit Commitment shall mean, as
to any Lender at any time, the amount initially set forth opposite its name on Schedule
1.1(B) in the column labeled “Amount of Commitment for Revolving Credit
Loans,” as such Commitment is thereafter assigned or modified and Revolving
Credit Commitments shall mean the aggregate Revolving Credit Commitments of
all of the Lenders.

 

Revolving Credit Loans shall mean
collectively and Revolving Credit Loan shall mean separately all
Revolving Credit Loans or any Revolving Credit Loan made by the Lenders or one
of the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit
Commitments].

 

Revolving Facility Usage shall mean at
any time the sum of the outstanding Loans.

 

S&P shall mean Standard & Poor’s Ratings Group, a
division of McGraw Hill, Inc., and its successors.

 

S&P Rating shall mean, on any date of determination,
the rating accorded to the Borrower’s senior unsecured long-term debt by
S&P (or if the Obligations are secured, the rating accorded to the Borrower’s
senior secured long-term debt by S&P).

 

Sale and Lease-Back Transaction shall mean any arrangement
with any Person providing for the leasing by the Borrower or any Subsidiary of
the Borrower of any Property (except for temporary leases for a term, including
any renewal thereof, of not more than one year and except for leases between
the Borrower and a Subsidiary of the Borrower or between Subsidiaries of the
Borrower), which Property has been or is to be sold or transferred by the
Borrower or such Subsidiary to such Person.

 

17

 

SEC shall mean the United States Securities and
Exchange Commission.

 

Single Employer Plan shall mean a Plan
maintained by the Borrower or any member of the Controlled Group for employees
of the Borrower or any member of the Controlled Group.

 

Standard Permitted Liens shall mean the following:

 

(a)                                  Liens for taxes not yet
delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves in accordance with GAAP have been
established;

 

(b)                                 Liens in respect of Property
or assets imposed by law that were incurred in the ordinary course of business,
such as carriers’, warehousemen’s, materialmen’s and mechanics’ Liens and other
similar Liens arising in the ordinary course of business, that (i) do not
secure payment obligations more than 60 days past due; (ii) do not, in the
aggregate, materially detract from the value of such Property or assets or
materially impair the use thereof in the operation of the business of the
Borrower or any of its Subsidiaries and do not secure any Indebtedness; or (iii)
are contested in good faith by appropriate proceedings and for which adequate
reserves shall have been set aside on the books of the Borrower or its respective
Subsidiary, as the case may be;

 

(c)                                  bankers’ Liens and rights of
setoff arising by operation of law and contractual rights of setoff;

 

(d)                                 Liens arising from
judgments, decrees or attachments in circumstances not constituting an Event of
Default under Section 8.1.6 [Final Judgments or Orders];

 

(e)                                  Liens (other than any Lien
imposed by ERISA) incurred or deposits made in the ordinary course of business
in connection with workers’ compensation, unemployment insurance and other
types of social security; and mechanic’s Liens, carrier’s Liens, and other
Liens to secure the performance of tenders, statutory obligations, contract
bids, government contracts, performance and return-of-money bonds and other
similar obligations, incurred in the ordinary course of business (exclusive of
obligations in respect of the payment for borrowed money), whether pursuant to
statutory requirements, common law or consensual arrangements;

 

(f)                                    leases or subleases granted
in the ordinary course of business to others not interfering in any material
respect with the business of the Borrower or any of its Subsidiaries and any
interest or title of a lessor under any lease not in violation of this
Agreement;

 

(g)                                 easements, rights-of-way,
zoning or other restrictions, charges, encumbrances, defects in title, prior
rights of other Persons, and obligations contained in similar instruments, in
each case that do not involve, and are not likely to involve at any future
time, either individually or in the aggregate, (i) a substantial and prolonged 

 

18

 

interruption or disruption
of the business activities of the Borrower and its Subsidiaries considered as
an entirety, or (ii) a Material Adverse Effect;

 

(h)                                 precautionary filing of
Uniform Commercial Code financing statements by lessors in connection with
Operating Leases;

 

(i)                                     Liens arising from the
rights of lessors under leases (including financing statements regarding
Property subject to lease) permitted under this Agreement, provided
that such Liens are only in respect of the Property subject to, and secure
only, the respective lease (and any other lease with the same or an affiliated
lessor); and

 

(j)                                     rights of consignors of
goods, whether or not perfected by the filing of a financing statement under
the UCC.

 

Subsidiary of any Person
at any time shall mean any corporation, trust, partnership, any limited
liability company or other business entity (i) of which 50% or more of the
outstanding voting securities or other interests normally entitled to vote for
the election of one or more directors or trustees (regardless of any
contingency which does or may suspend or dilute the voting rights) is at such
time owned directly or indirectly by such Person or one or more of such Person’s
Subsidiaries, or (ii) whose policies, management and affairs is directed by
such Person or one or more of such Person’s Subsidiaries.  Unless otherwise expressly provided, all
references herein to “Subsidiary” shall mean a Subsidiary of the Borrower.

 

Substantial Portion shall mean, with respect to
the Property of the Borrower and its Subsidiaries, Property that (a) represents
more than 10% of the Consolidated Tangible Assets of the Borrower and its
Subsidiaries as would be shown in the consolidated financial statements of the
Borrower and its Subsidiaries as at the beginning of the twelve-month period
ending with the month in which such determination is made or (b) is responsible
for more than 10% of the consolidated net sales or of the Consolidated Net
Income of the Borrower and its Subsidiaries as reflected in the financial
statements referred to in clause (a) above.

 

Swap Agreement shall mean (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing),
irrespective of whether any such transaction is governed by or subject to any
master agreement, and (b) any and all transactions of any kind, and the related
confirmations, that are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including
any such obligations or liabilities under any Master Agreement.

 

19

 

Synthetic Lease shall mean any lease (a) that is accounted
for by the lessee as an Operating Lease, and (b) under which the lessee is
intended to be the “owner” of the leased Property for Federal income tax
purposes.

 

Taxes shall mean all
present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Official Body, including any
interest, additions to tax or penalties applicable thereto.

 

Unfunded Liabilities shall mean the amount, if
any, by which the present value of all vested and unvested accrued benefits under
all Single Employer Plans exceeds the fair market value of all such Plan assets
allocable to such benefits, all as set forth in the then most recent annual
actuarial valuation report for such Plans provided to the Borrower or any of
its Subsidiaries using the actuarial assumptions set forth in such report and
permitted by applicable law or, in the context of a notice of intent to
terminate, or termination of, a Plan, determined as of the date of the Plan’s
termination using PBGC actuarial assumptions for Plan terminations

 

United States and U.S. each shall mean the
United States of America.

 

USA Patriot Act shall mean the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same
has been, or shall hereafter be, renewed, extended, amended or replaced.

 

Wholly-Owned Subsidiary shall mean
each Subsidiary of the Borrower at least 95% of whose capital stock, equity
interests and partnership interests, other than director’s qualifying shares or
similar interests, are owned directly or indirectly by the Borrower.

 

1.2                     Construction.  Unless the context of this Agreement
otherwise clearly requires, the following rules of construction shall apply to
this Agreement and each of the other Loan Documents: (i) references to the
plural include the singular, the plural, the part and the whole and the words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”; (ii) the words “hereof,” “herein,” “hereunder,” “hereto” and
similar terms in this Agreement or any other Loan Document refer to this
Agreement or such other Loan Document as a whole; (iii) article, section,
subsection, clause, schedule and exhibit references are to this Agreement or
other Loan Document, as the case may be, unless otherwise specified; (iv) reference
to any Person includes such Person’s successors and assigns; (v) reference to
any agreement, including this Agreement and any other Loan Document together
with the schedules and exhibits hereto or thereto, document or instrument means
such agreement, document or instrument as amended, modified, replaced,
substituted for, superseded or restated; (vi) relative to the determination of
any period of time, “from” means “from and including,” “to” means “to but
excluding,” and “through” means “through and including”; (vii) the words “asset”
and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights, (viii) section headings herein
and in each other Loan Document are included for convenience and shall not
affect the interpretation of this Agreement or such Loan Document, and (ix) unless
otherwise specified, all references herein to times of day shall be references
to Eastern Standard Time or Eastern Daylight Time, as applicable.

 

20

 

1.3       Accounting Principles.  Except as otherwise provided in this
Agreement, all computations and determinations as to accounting or financial
matters and all financial statements to be delivered pursuant to this Agreement
shall be made and prepared in accordance with GAAP (including principles of
consolidation where appropriate), and all accounting or financial terms shall
have the meanings ascribed to such terms by GAAP; provided, however,
that all accounting terms used in Section 7.2 [Negative Covenants] (and all
defined terms used in the definition of any accounting term used in Section 7.2
[Negative Covenants] shall have the meaning given to such terms (and defined
terms) under GAAP as in effect on the date hereof applied on a basis consistent
with those used in financial statements referred to in Section 5.1.7 [Financial
Statements].  In the event of any change
after the date hereof in GAAP, and if such change would affect the computation
of any of the financial covenants set forth in Section 7.2 [Negative
Covenants], then the parties hereto agree to endeavor, in good faith, to agree
upon an amendment to this Agreement that would adjust such financial covenants
in a manner that would preserve the original intent thereof, but would allow
compliance therewith to be determined in accordance with the Borrower’s
financial statements at that time, provided  that, until so
amended such financial covenants shall continue to be computed in accordance
with GAAP prior to such change therein.

 

2.     REVOLVING CREDIT FACILITIES

 

2.1       Revolving Credit Commitments.  Subject to the terms and conditions hereof
and relying upon the representations and warranties herein set forth, each
Lender severally agrees to make Loans to the Borrower at any time or from time
to time on or after the date hereof to the Expiration Date; provided that after
giving effect to such Loan (i) the aggregate amount of Loans from such Lender
shall not exceed such Lender’s Commitment and (ii) the Revolving Facility Usage
shall not exceed the Commitments.  Within
such limits of time and amount and subject to the other provisions of this
Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section
2.1.

 

2.2       Nature of Lenders’ Obligations with
Respect to Revolving Credit Loans. 
Each Lender shall be obligated to participate in each request for Loans
pursuant to Section 2.4 [Revolving Credit Loan Requests] in accordance with its
Ratable Share.  The aggregate of each
Lender’s Loans outstanding hereunder to the Borrower at any time shall never
exceed its Commitment.  The obligations
of each Lender hereunder are several. 
The failure of any Lender to perform its obligations hereunder shall not
affect the Obligations of the Borrower to any other party nor shall any other
party be liable for the failure of such Lender to perform its obligations
hereunder.  The Lenders shall have no
obligation to make Loans hereunder on or after the Expiration Date.

 

2.3       Facility Fees.  The Borrower agrees to pay to the
Administrative Agent on for the account of each Lender, as consideration for
such Lender’s Commitments, a nonrefundable facility fee equal to the Applicable
Facility Fee Rate (computed on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed) times such Lender’s Commitment (the “Facility Fee”); provided, however, that any
Facility Fee accrued with respect to the Commitment of a Defaulting Lender
during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrower so long as such Lender
shall be a Defaulting Lender except to the extent that such Facility Fee shall
otherwise have been due and payable by the Borrower prior to such time; and provided
further that no 

 

21

 

Facility
Fee shall accrue with respect to the Revolving Commitment of a Defaulting
Lender so long as such Lender shall be a Defaulting Lender.  Subject to the proviso in the directly
preceding sentence, all Facility Fees shall be payable in arrears on each
Payment Date.

 

2.4       Revolving Credit Loan Requests.  Except as otherwise provided herein, the
Borrower may from time to time prior to the Expiration Date request the Lenders
to make Loans, or renew or convert the Interest Rate Option applicable to
existing Loans pursuant to Section 3.2 [Interest Periods], by delivering to the
Administrative Agent, not later than 11:00 a.m. (i) three (3) Business Days
prior to the proposed Borrowing Date with respect to the making of Loans to
which the LIBOR Rate Option applies or the conversion to or the renewal of the
LIBOR Rate Option for any Loans; and (ii) on the same day as the proposed
Borrowing Date, provided that such Borrowing Date shall be a Business Day (in
the event that such Borrowing Date is not a Business Date, the proposed
Borrowing Date shall be deemed to be the next Business Day), with respect to
the making of a Loan to which the Base Rate Option applies or the last day of
the preceding Interest Period with respect to the conversion to the Base Rate
Option for any Loan, of a duly completed request therefor substantially in the
form of Exhibit 2.4 or a request by telephone immediately confirmed in
writing by letter, facsimile or telex in such form (each, a “Loan Request”), it being understood that the Administrative
Agent may rely on the authority of any individual making such a telephonic
request without the necessity of receipt of such written confirmation.  Each Loan Request shall be irrevocable and
shall specify the aggregate amount of the proposed Loans comprising each
Borrowing Tranche, and, if applicable, the Interest Period, which amounts shall
be in integral multiples of $500,000 and not less than the lesser of $1,000,000
or the maximum amount available for each Borrowing Tranche under the LIBOR Rate
Option and in integral multiples of $100,000 and not less than the lesser of
$500,000 or the maximum amount available for Borrowing Tranches under the Base
Rate Option.

 

2.5       Making Revolving Credit Loans; Presumptions by the
Administrative Agent; Repayment of Revolving Credit Loans.

 

2.5.1              Making
Revolving Credit Loans.  The
Administrative Agent shall, promptly after receipt by it of a Loan Request
pursuant to Section 2.4 [Revolving Credit Loan Requests], notify the Lenders of
its receipt of such Loan Request specifying the information provided by the
Borrower and the apportionment among the Lenders of the requested Loans as
determined by the Administrative Agent in accordance with Section 2.2 [Nature
of Lenders’ Obligations with Respect to Revolving Credit Loans].  Each Lender shall remit the principal amount
of each Loan to the Administrative Agent such that the Administrative Agent is
able to, and the Administrative Agent shall, to the extent the Lenders have
made funds available to it for such purpose and subject to Section 6.2 [Each
Loan], fund such Loans to the Borrower in U.S. Dollars and immediately
available funds at the Principal Office prior to 2:00 p.m. on the applicable
Borrowing Date; provided that if any Lender fails to remit such funds to
the Administrative Agent in a timely manner, the Administrative Agent may elect
in its sole discretion to fund with its own funds the Loans of such Lender on
such Borrowing Date, and such Lender shall be subject to the repayment
obligation in Section 2.5.2 [Presumptions by the Administrative Agent].

 

2.5.2              Presumptions by the
Administrative Agent. 
Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Loan that such 

 

22

 

Lender
will not make available to the Administrative Agent such Lender’s share of such
Loan, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.4 [Revolving Credit Loan
Requests] and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount.  In such
event, if a Lender has not in fact made its share of the applicable Loan
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand
such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (i) in the case
of a payment to be made by such Lender, the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation and (ii) in the case of a
payment to be made by the Borrower, the interest rate applicable to the
Loans.  If such Lender pays its share of
the applicable Loan to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan.  Any
payment by the Borrower shall be without prejudice to any claim the Borrower
may have against a Lender that shall have failed to make such payment to the
Administrative Agent.

 

2.5.3              Repayment of Revolving Credit
Loans.  The Borrower shall repay the
Loans together with all outstanding interest thereon on the Expiration Date.

 

2.6       Notes.  The Obligation of the Borrower to repay the
aggregate unpaid principal amount of the Loans made to it by each Lender,
together with interest thereon, shall be evidenced by a revolving credit Note
dated the Closing Date payable to the order of such Lender in a face amount
equal to the Commitment of such Lender.

 

2.7       Use of Proceeds.  The proceeds of the Loans shall be used for
general corporate purposes, including providing for backup liquidity.

 

2.8       Voluntary Termination.  Upon at least three (3) Business
Days’ prior written notice (or telephonic notice confirmed in writing) to the
Administrative Agent, the Borrower shall have the right to terminate in whole
the Commitment, provided that all outstanding Loans are contemporaneously
prepaid in accordance with this Agreement.

 

3.     INTEREST RATES

 

3.1       Interest Rate Options.  The Borrower shall pay interest in respect of
the outstanding unpaid principal amount of the Loans as selected by it from the
Base Rate Option or LIBOR Rate Option set forth below applicable to the Loans,
it being understood that, subject to the provisions of this Agreement, the
Borrower may select different Interest Rate Options and different Interest
Periods to apply simultaneously to the Loans comprising different Borrowing
Tranches and may convert to or renew one or more Interest Rate Options with
respect to all or any portion of the Loans comprising any Borrowing Tranche; provided
that there shall not be at any one time outstanding more than ten (10) Borrowing
Tranches in the aggregate among all of the Loans and provided further
that if an Event of Default or Potential Default exists and is continuing, the
Borrower may not request, convert to, or renew the LIBOR Rate Option for any
Loans and the Required Lenders may demand that all existing Borrowing Tranches
bearing interest under the LIBOR Rate Option shall be converted immediately to
the Base Rate Option, subject to the obligation of the Borrower to pay any
indemnity under Section 4.9 [Indemnity] in 

 

23

 

connection
with such conversion.  If at any time the
designated rate applicable to any Loan made by any Lender exceeds such Lender’s
highest lawful rate, the rate of interest on such Lender’s Loan shall be
limited to such Lender’s highest lawful rate.

 

3.1.1              Revolving Credit Interest Rate
Options.  The Borrower shall have the
right to select from the following Interest Rate Options applicable to the
Loans:

 

(i)            Revolving Credit Base Rate Option:  A fluctuating rate per annum (computed on the
basis of a year of 360 days and actual days elapsed) equal to the Base Rate
plus the Applicable Margin, such interest rate to change automatically from
time to time effective as of the effective date of each change in the Base
Rate; or

 

(ii)           Revolving Credit LIBOR Rate Option:  A rate per annum (computed on the basis of a
year of 360 days and actual days elapsed) equal to the LIBOR Rate plus the
Applicable Margin.

 

3.1.2              Rate Quotations.  The Borrower may call the Administrative
Agent on or before the date on which a Loan Request is to be delivered to
receive an indication of the rates then in effect, but it is acknowledged that
such projection shall not be binding on the Administrative Agent or the Lenders
nor affect the rate of interest which thereafter is actually in effect when the
election is made.

 

3.2       Interest Periods.  At any time when the Borrower shall select,
convert to or renew a LIBOR Rate Option, the Borrower shall notify the
Administrative Agent thereof at least three (3) Business Days prior to the
effective date of such LIBOR Rate Option by delivering a Loan Request.  The notice shall specify an Interest Period
during which such Interest Rate Option shall apply.  Notwithstanding the preceding sentence, the
following provisions shall apply to any selection of, renewal of, or conversion
to a LIBOR Rate Option:

 

3.2.1              Amount of Borrowing Tranche.  Each Borrowing Tranche of Loans under the
LIBOR Rate Option shall be in integral multiples of $500,000 and not less than
$1,000,000; and

 

3.2.2              Renewals.  In the case of the renewal of a LIBOR Rate
Option at the end of an Interest Period, the first day of the new Interest
Period shall be the last day of the preceding Interest Period, without
duplication in payment of interest for such day.

 

3.3       Interest After Default.  To the extent permitted by Law, upon the
occurrence of an Event of Default and until such time such Event of Default
shall have been cured or waived:

 

3.3.1              Interest Rate.  The rate of interest for each Loan otherwise
applicable pursuant to Section 3.1 [Interest Rate Options] shall be increased
by 2.0% per annum;

 

3.3.2              Other Obligations.  Each other Obligation hereunder if not paid
when due shall bear interest at a rate per annum equal to the sum of the rate
of interest applicable under the Base Rate Option plus an additional 2.0% per
annum from the time such Obligation becomes due and payable and until it is
paid in full; and

 

24

 

3.3.3              Acknowledgment.  The Borrower acknowledges that the increase
in rates referred to in this Section 3.3 reflects, among other things, the fact
that such Loans or other amounts have become a substantially greater risk given
their default status and that the Lenders are entitled to additional
compensation for such risk; and all such interest shall be payable by Borrower
upon demand by Administrative Agent.

 

3.4       LIBOR Rate Unascertainable; Illegality; Increased
Costs; Deposits Not Available.

 

3.4.1              Unascertainable.  If on any date on which a LIBOR Rate would
otherwise be determined, the Administrative Agent shall have reasonably
determined that:

 

(i)            adequate and reasonable means do not exist for
ascertaining such LIBOR Rate, or

 

(ii)           a contingency has occurred which materially and adversely
affects the London interbank eurodollar market relating to the LIBOR Rate, the
Administrative Agent shall have the rights specified in Section 3.4.3
[Administrative Agent’s and Lender’s Rights].

 

3.4.2              Illegality; Increased Costs;
Deposits Not Available.  If at any
time any Lender shall have reasonably determined that:

 

(i)            the making, maintenance or funding of any Loan to which a
LIBOR Rate Option applies has been made impracticable or unlawful by compliance
by such Lender in good faith with any Law or any interpretation or application
thereof by any Official Body or with any request or directive of any such
Official Body (whether or not having the force of Law),

 

(ii)           such LIBOR Rate Option will not adequately and fairly
reflect the cost to such Lender of the establishment or maintenance of any such
Loan, or

 

(iii)          after making all reasonable efforts, deposits of the
relevant amount in Dollars for the relevant Interest Period for a Loan, or to
banks generally, to which a LIBOR Rate Option applies, respectively, are not
available to such Lender with respect to such Loan, or to banks generally, in
the interbank eurodollar market,

 

then the Administrative Agent shall have the rights
specified in Section 3.4.3 [Administrative Agent’s and Lender’s Rights].

 

3.4.3              Administrative Agent’s and
Lender’s Rights.  In the case of any
event specified in Section 3.4.1 [Unascertainable] above, the Administrative
Agent shall promptly so notify the Lenders and the Borrower thereof, and in the
case of an event specified in Section 3.4.2 [Illegality; Increased Costs;
Deposits Not Available] above, such Lender shall promptly so notify the
Administrative Agent and endorse a certificate to such notice as to the specific
circumstances of such notice, and the Administrative Agent shall promptly send
copies of such notice and certificate to the other Lenders and the
Borrower.  Upon such date as shall be
specified in such notice (which shall not be earlier than the date such notice
is given), the obligation of (A) the Lenders, in the case of such notice given
by the Administrative Agent, or (B) such Lender, in the case of such notice
given by such Lender, to allow the Borrower to select, convert to or renew a
LIBOR Rate Option shall be suspended until the Administrative 

 

25

 

Agent
shall have later notified the Borrower, or such Lender shall have later
notified the Administrative Agent, of the Administrative Agent’s or such Lender’s,
as the case may be, determination that the circumstances giving rise to such
previous determination no longer exist. 
If at any time the Administrative Agent makes a determination under Section
3.4.1 [Unascertainable] and the Borrower has previously notified the
Administrative Agent of its selection of, conversion to or renewal of a LIBOR
Rate Option and such Interest Rate Option has not yet gone into effect, such
notification shall be deemed to provide for selection of, conversion to or
renewal of the Base Rate Option otherwise available with respect to such
Loans.  If any Lender notifies the
Administrative Agent of a determination under Section 3.4.2 [Illegality;
Increased Costs; Deposits Not Available], the Borrower shall, subject to the
Borrower’s indemnification Obligations under Section 4.9 [Indemnity], as to any
Loan of the Lender to which a LIBOR Rate Option applies, on the date specified
in such notice either convert such Loan to the Base Rate Option otherwise
available with respect to such Loan or prepay such Loan in accordance with Section
4.6 [Voluntary Prepayments].  Absent due
notice from the Borrower of conversion or prepayment, such Loan shall
automatically be converted to the Base Rate Option otherwise available with
respect to such Loan upon such specified date.

 

3.5       Selection of Interest Rate Options.  If the Borrower fails to select a new
Interest Period to apply to any Borrowing Tranche of Loans under the LIBOR Rate
Option at the expiration of an existing Interest Period applicable to such
Borrowing Tranche in accordance with the provisions of Section 3.2 [Interest
Periods], the Borrower shall be deemed to have converted such Borrowing Tranche
to the Base Rate Option commencing upon the last day of the existing Interest
Period.

 

4.     PAYMENTS

 

4.1       Payments.  All payments and prepayments to be made in
respect of principal, interest, Facility Fees, Administrative Agent’s Fee or
other fees or amounts due from the Borrower hereunder shall be payable prior to
11:00 a.m. on the date when due without presentment, demand, protest or notice
of any kind, all of which are hereby expressly waived by the Borrower, and
without set-off, counterclaim or other deduction of any nature, and an action
therefor shall immediately accrue.  Such
payments shall be made to the Administrative Agent at the Principal Office for
the account of PNC for the ratable accounts of the Lenders with respect to the
Loans in U.S. Dollars and in immediately available funds, and the
Administrative Agent shall promptly distribute such amounts to the Lenders in
immediately available funds; provided that in the event payments are
received by 11:00 a.m. by the Administrative Agent with respect to the Loans
and such payments are not distributed to the Lenders on the same day received
by the Administrative Agent, the Administrative Agent shall pay the Lenders the
Federal Funds Effective Rate with respect to the amount of such payments for
each day held by the Administrative Agent and not distributed to the Lenders.  The Administrative Agent’s and each Lender’s
statement of account, ledger or other relevant record shall, in the absence of
manifest error, be conclusive as the statement of the amount of principal of
and interest on the Loans and other amounts owing under this Agreement and
shall be deemed an “account stated.”

 

4.2       Pro Rata Treatment of Lenders.  Each borrowing shall be allocated to each
Lender according to its Ratable Share, and each selection of, conversion to or
renewal of any Interest Rate Option and each payment or prepayment by the
Borrower with respect to principal, interest, 

 

26

 

Facility
Fees or other fees (except for the Administrative Agent’s Fee) or amounts due
from the Borrower hereunder to the Lenders with respect to the Loans, shall
(except as otherwise may be provided with respect to a Defaulting Lender or a
Delinquent Lender and except as provided in Section 3.4.3 [Administrative Agent’s
and Lender’s Rights] in the case of an event specified in Section 3.4 [LIBOR
Rate Unascertainable; Etc.], 4.6.2 [Replacement of a Lender] or 4.7 [Increased
Costs]) be made in proportion to the applicable Loans outstanding from each
Lender and, if no such Loans are then outstanding, in proportion to the Ratable
Share of each Lender.

 

4.3           Sharing of Payments by Lenders.  If any Lender shall, by exercising any right
of setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by
realization upon security, or by any other non-pro rata source, obtain payment
in respect of any principal of or interest on any of its Loans or other
obligations hereunder resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of its Loans and accrued interest thereon or
other such obligations greater than its Ratable Share thereof as provided
herein, then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans and such other obligations of the other Lenders, or
make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that:

 

(i)        if any such participations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such
recovery, together with interest or other amounts, if any, required by Law
(including court order) to be paid by the Lender or the holder making such
purchase; and

 

(ii)       the provisions of this Section 4.3 shall not be construed to
apply to (x) any payment made by the Borrower pursuant to and
in accordance with the express terms of the Loan Documents or (y) any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans to any assignee or participant, other than to
the Borrower (as to which the provisions of this Section 4.3 shall apply).

 

The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable Law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

 

Notwithstanding anything
to the contrary contained in this Agreement or any of the other Loan Documents,
any Lender that fails at any time to comply with the provisions of this Section
4.3 with respect to purchasing participations from the other Lenders whereby
such Lender’s share of any payment received, whether by setoff or otherwise, is
in excess of its Ratable Share of such payments due and payable to all of the
Lenders, when and to the full extent required by the provisions of this
Agreement, shall be deemed delinquent (a “Delinquent  Lender”) and
shall be deemed a Delinquent Lender until such time as each such delinquency
and all of its obligations hereunder are satisfied.  A Delinquent Lender shall be deemed to have
assigned any and all payments due to it from the Borrower, whether on account
of or relating to outstanding Loans, 

 

27

 

interest, fees or
otherwise, to the remaining nondelinquent Lenders for application to, and
reduction of, their respective Ratable Share of all outstanding Loans and other
unpaid Obligations of the Borrower.  The
Delinquent Lender hereby authorizes the Administrative Agent to distribute such
payments to the nondelinquent Lenders in proportion to their respective Ratable
Share of all outstanding Loans and other unpaid Obligations of any of the Loan
Parties.  A Delinquent Lender shall be
deemed to have satisfied in full a delinquency when and if, as a result of
application of the assigned payments to all outstanding Loans and other unpaid
Obligations of the Borrower to the nondelinquent Lenders, the Lenders’
respective Ratable Share of all outstanding Loans and unpaid Obligations have
returned to those in effect immediately prior to such delinquency and without
giving effect to the nonpayment causing such delinquency.

 

4.4       Presumptions by Administrative Agent.  Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender, with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

 

4.5       Interest Payment Dates.  Interest on Loans to which the Base Rate
Option applies shall be due and payable in arrears on each Payment Date.  Interest on Loans to which the LIBOR Rate
Option applies shall be due and payable on the last day of each Interest Period
for those Loans and, if such Interest Period is longer than three (3) Months,
also on the 90th day of such Interest Period. 
Interest on the principal amount of each Loan or other monetary
Obligation shall be due and payable on demand after such principal amount or
other monetary Obligation becomes due and payable (whether on the stated
Expiration Date, upon acceleration or otherwise).

 

4.6       Voluntary Prepayments.

 

4.6.1              Right to Prepay.  The Borrower shall have the right at its
option from time to time to prepay the Loans in whole or part without premium
or penalty (except as provided in Section 4.6.2 [Replacement of a Lender]
below, in Section 4.7 [Increased Costs] and Section 4.9 [Indemnity]).  Whenever the Borrower desires to prepay any
part of the Loans, it shall provide a prepayment notice to the Administrative
Agent by 1:00 p.m. at least one (1) Business Day prior to the date of
prepayment of the Loans setting forth the following information:

 

(x)            the date, which shall be a Business
Day, on which the proposed prepayment is to be made;

 

28

 

(y)           with respect to any prepayment of any
Loans subject to the LIBOR Rate Option, a statement indicating the application
of the prepayment between the LIBOR Rate Option tranches; and

 

(z)            the total principal amount of such
prepayment, which shall not be less than the lesser of the Revolving Facility
Usage or $100,000.

 

All
prepayment notices shall be irrevocable. 
The principal amount of the Loans for which a prepayment notice is
given, together with interest on such principal amount except with respect to
Loans to which the Base Rate Option applies, shall be due and payable on the
date specified in such prepayment notice as the date on which the proposed prepayment
is to be made.  Except as provided in Section
3.4.3 [Administrative Agent’s and Lender’s Rights], if the Borrower prepays a
Loan but fails to specify the applicable Borrowing Tranche which the Borrower
is prepaying, the prepayment shall be applied first to Loans to which the Base
Rate Option applies, then to Loans to which the LIBOR Rate Option applies.  Any prepayment hereunder shall be subject to
the Borrower’s Obligation to indemnify the Lenders under Section 4.9
[Indemnity].

 

4.6.2              Replacement of a Lender.  In the event any Lender (a) gives notice
under Section 3.4 [LIBOR Rate Unascertainable, Etc.], (b) requests compensation
under Section 4.7 [Increased Costs], or requires the Borrower to pay any
additional amount to any Lender or any Official Body for the account of any
Lender pursuant to Section 4.8 [Taxes], (c) is a Defaulting Lender, (d) becomes
subject to the control of an Official Body (other than normal and customary
supervision), (e) is a Non-Consenting Lender referred to in Section 10.1 [Modifications,
Amendments or Waivers or (f) does not fund any Loans because the making of such
Loans would contravene any Law applicable to the Lender, then in any such event
the Borrower may, at its sole expense, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.8 [Successors and Assigns]), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(i)            the Borrower shall have paid to the Administrative Agent
the assignment fee specified in Section 10.8 [Successors and Assigns];

 

(ii)           such Lender shall have received payment of an amount equal
to the outstanding principal of its Loans accrued interest thereon, accrued
fees and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 4.9 [Indemnity]) from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts);

 

(iii)          in the case of any such assignment resulting from a claim
for compensation under Section 4.7.1 [Increased Costs Generally] or payments
required to be made pursuant to Section 4.8 [Taxes], such assignment will
result in a reduction in such compensation or payments thereafter; and

 

(iv)          such assignment does not conflict with applicable Law.

 

29

 

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

 

4.7       Increased Costs.

 

4.7.1              Increased Costs Generally.  If any Change in Law shall:

 

(i)            impose, modify or deem applicable any reserve, special
deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or credit extended or
participated in by, any Lender (except any reserve requirement reflected in the
LIBOR Rate);

 

(ii)           subject any Lender to any tax of any kind whatsoever with
respect to this Agreement, any participation in any Loan under the LIBOR Rate
Option made by it, or change the basis of taxation of payments to such Lender
in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section
4.8 [Taxes] and the imposition of, or any change in the rate or any change in
the method of calculating or basis of taxation of payments to such Lender with
respect to any Excluded Tax payable by such Lender); or

 

(iii)          impose on any Lender or the London interbank market any
other condition, cost or expense affecting this Agreement or Loan under the
LIBOR Rate Option made by such Lender;

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Loan under the LIBOR Rate Option (or of
maintaining its obligation to make any such Loan), or to reduce the amount of
any sum received or receivable by such Lender (whether of principal, interest
or any other amount) then, upon request of such Lender, the Borrower will pay
to such Lender such additional amount or amounts as will compensate such Lender
for such additional costs incurred or reduction suffered, provided that such
increased costs shall be determined by the Lender’s reasonable allocation of
the aggregate increased cost resulting from such events that is attributable to
this Agreement.

 

4.7.2              Capital Requirements.  If any Lender determines that any Change in
Law affecting such Lender or any lending office of such Lender or such Lender’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by such Lender to a
level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender,
as the case may be, such additional amount or amounts that the Lender
reasonably determines is attributable to this Agreement and as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

 

4.7.3              Certificates for Reimbursement;
Repayment of Outstanding Loans; Borrowing of New Loans.  A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company,
as the case may be, as specified in

 

30

 

Sections
4.7.1 [Increased Costs Generally] or 4.7.2 [Capital Requirements] and delivered
to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within ten (10) days after receipt
thereof.

 

4.7.4                                           Delay in
Requests.  Failure or
delay on the part of any Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender pursuant to this
Section for any increased costs incurred or reductions suffered more than
nine months prior to the date that such Lender, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the nine (9) month period referred to
above shall be extended to include the period of retroactive effect thereof).

 

4.8                            Taxes.

 

4.8.1                                           Payments Free
of Taxes.  Any and all
payments by or on account of any obligation of the Borrower hereunder or under
any other Loan Document shall be made free and clear of and without reduction
or withholding for any Indemnified Taxes or Other Taxes; provided that
if the Borrower shall be required by applicable Law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent or Lender, 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 timely pay the full amount deducted to the relevant Official
Body in accordance with applicable Law.

 

4.8.2                                           Payment of
Other Taxes by the Borrower.  Without limiting the provisions of Section 4.8.1
[Payments Free of Taxes] above, the Borrower shall timely pay any Other Taxes
to the relevant Official Body in accordance with applicable Law.

 

4.8.3                                           Indemnification
by the Borrower.  The Borrower
shall indemnify the Administrative Agent, each Lender, within ten (10) days
after demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Official Body, provided that the Administrative Agent
and Lender, as the case may be, shall have provided the Borrower with evidence
of payment of such amounts.  A certificate
as to the amount of such payment or liability delivered to the Borrower by a
Lender (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.

 

4.8.4                                           Evidence of
Payments.  As soon as
practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Official Body, the Borrower shall 

 

31

 

deliver
to the Administrative Agent the original or a certified copy of a receipt issued
by such Official Body evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent.

 

4.8.5                                           Status of
Lenders.  Any Foreign
Lender that is entitled to an exemption from or reduction of withholding tax
under the Law of the jurisdiction in which the Borrower is resident for tax
purposes, or any treaty to which such jurisdiction is a party, with respect to
payments hereunder or under any other Loan Document shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable Law or reasonably requested by the Borrower or the
Administrative Agent, such properly completed and executed documentation
prescribed by applicable Law as will permit such payments to be made without
withholding or at a reduced rate of withholding.  Notwithstanding the submission of such
documentation claiming a reduced rate of or exemption from U.S. withholding
tax, the Administrative Agent shall be entitled to withhold United States
federal income taxes at the full 30% withholding rate if in its reasonable
judgment it is required to do so under the due diligence requirements imposed
upon a withholding agent under § 1.1441-7(b) of the United States Income
Tax Regulations.  Further, the
Administrative Agent is indemnified under § 1.1461-1(e) of the United
States Income Tax Regulations against any claims and demands of any Lender or
assignee or participant of a Lender for the amount of any tax it deducts and
withholds in accordance with regulations under § 1441 of the Internal Revenue
Code.  In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable Law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

 

Without limiting the generality of the
foregoing, each Lender shall deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date on which such Lender becomes a Lender under this Agreement
and upon a Change in Law or circumstances requiring or making appropriate a new
or additional form, certificate or documentation, and upon or before the
expiration, obsolescence or invalidity of any documentation previously provided
(and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Lender is legally entitled to do so),
the following properly completed and duly executed documents that are
applicable to such Lender:

 

(i)                                     two (2) duly
completed valid originals of IRS Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States of America is a
party,

 

(ii)                                  two (2) duly
completed valid originals of IRS Form W-8ECI,

 

(iii)                               in the case of
a Foreign Lender claiming the benefits of the exemption for portfolio interest
under section 881(c) of the Code, (x) a certificate to the effect
that such Foreign Lender is not (A) a “bank” within the meaning of section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the
Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in section 881(c)(3)(C) of the
Code and (y) two (2) duly completed valid originals of IRS Form W-8BEN,

 

32

 

(iv)                              two (2) duly
completed, valid originals of a W-9 or any other form prescribed by applicable
Law demonstrating that such Lender is not a Foreign Lender, or

 

(v)                                 any other form
prescribed by applicable Law as a basis for claiming exemption from or a reduction
in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable Law to permit
the Borrower to determine the withholding or deduction required to be made.

 

4.8.6                                           Refunds.  If the Administrative Agent or any Lender, in
its sole opinion, determines that it has finally and irrevocably received or
been granted a refund in respect of any Taxes paid as to which indemnification
has been paid by the Borrower pursuant to this Section, it shall promptly remit
such refund, net of all reasonable out of pocket costs and expenses; provided,
that the Borrower agrees to promptly return any such refund to the
Administrative Agent or such Lender, as applicable, if such person is required
to repay such refund to the relevant taxing authority.  The Administrative Agent or any such Lender
shall provide the Borrower with a copy of any notice of assessment from the
relevant taxing authority (redacting any unrelated confidential information
contained therein) requiring repayment of such refund.  Nothing contained herein shall impose an
obligation on the Administrative Agent or any Lender to apply for any such
refund.

 

4.9                            Indemnity.  In addition to the compensation or payments
required by Section 4.7 [Increased Costs]or Section 4.8 [Taxes],
except to the extent of a Lender’s gross negligence or willful misconduct, the
Borrower shall indemnify each Lender against all liabilities, losses or
expenses (including loss of margin, any loss or expense incurred in liquidating
or employing deposits from third parties and any loss or expense incurred in
connection with funds acquired by a Lender to fund or maintain Loans subject to
a LIBOR Rate Option) which such Lender sustains or incurs as a consequence of
any:

 

(i)                                     payment,
prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option
applies on a day other than the last day of the corresponding Interest Period
(whether or not such payment or prepayment is mandatory, voluntary or automatic
and whether or not such payment or prepayment is then due),

 

(ii)                                  attempt by the
Borrower to revoke (expressly, by later inconsistent notices or otherwise) in
whole or part any Loan Requests under Section 2.4 [Revolving Credit Loan
Requests] or Section 3.2 [Interest Periods] or notice relating to
prepayments under Section 4.6 [Voluntary Prepayments],

 

(iii)                               the assignment
of any Loan to which a LIBOR Rate Option applies other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower
pursuant to Section 4.6.2 [Replacement of a Lender], or

 

(iv)                              default by the
Borrower in the performance or observance of any covenant or condition
contained in this Agreement or any other Loan Document, including any failure
of the Borrower to pay when due (by acceleration or otherwise) any principal,
interest, Facility Fee or any other amount due hereunder.

 

33

 

If any Lender sustains or incurs any such
loss or expense, it shall from time to time notify the Borrower of the amount
determined in good faith by such Lender (which determination may include such
assumptions, allocations of costs and expenses and averaging or attribution
methods as such Lender shall deem reasonable) to be necessary to indemnify such
Lender for such loss or expense.  Such
notice shall set forth in reasonable detail the basis for such
determination.  Such amount shall be due
and payable by the Borrower to such Lender ten (10) Business Days after
such notice is given.

 

5.               REPRESENTATIONS AND WARRANTIES

 

5.1                            Representations
and Warranties.  the Borrower represents and
warrants to the Administrative Agent and each of the Lenders as follows:

 

5.1.1                                           Corporate
Status.  Each of the Borrower and its
Subsidiaries (a) is a duly organized or formed
and validly existing corporation, partnership or limited liability company, as
the case may be, in good standing under the laws of the jurisdiction of its
formation and has the corporate, partnership or limited liability company power
and authority, as applicable, to own its Property and assets and to transact
the business in which it is engaged, and (b) has
been duly qualified and is authorized to do business in all jurisdictions where
it is required to be so qualified except where the failure to be so qualified
would not have a Material Adverse Effect. 
Each Subsidiary of the Borrower (and the direct and indirect ownership
interest of the Borrower therein) as of the date hereof and the jurisdiction of
incorporation of Borrower and each such Subsidiary as of the date hereof is
listed on Schedule 5.1.1.

 

5.1.2                                           Corporate Power
and Authority.  The Borrower
has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Loan Documents to which
it is party and has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of the Loan
Documents to which it is party.  The
Borrower has duly executed and delivered each Loan Document to which it is
party and each Loan Document to which it is party constitutes the legal, valid
and binding agreement or obligation of the Borrower enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law).

 

5.1.3                                           No Violation.  Neither the execution, delivery and
performance by the Borrower of the Loan Documents to which it is party nor
compliance with the terms and provisions thereof (a) will
contravene any provision of any law, statute, rule, regulation, order, writ,
injunction or decree of any Official Body applicable to the Borrower or its
properties and assets, (b) will conflict with
or result in any breach of, any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien upon any of the
Property or assets of the Borrower pursuant to the terms of any material
promissory note, bond, debenture, indenture, mortgage, deed of trust, credit or
loan agreement, or any other agreement or other instrument, to which the
Borrower is a party or by which it or any of its Property or assets are bound
or to which it may be 

 

34

 

subject,
or (c) will violate any provision of the
certificate or articles of incorporation, regulations or bylaws, or other
charter documents of the Borrower.

 

5.1.4                                           Governmental
Approvals.  No order,
consent, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, any Official Body is required
in connection with (i) any extension of credit hereunder when made, (ii) the
execution, delivery and performance by the Borrower of any Loan Document to
which it is a party or (iii) the legality, validity, binding effect or
enforceability of any Loan Document to which the Borrower is a party, except
for orders, consents, approvals, licenses, authorizations, validations,
filings, recordings, registrations and/or exemptions required with respect
items (i) or (ii) of this Section that have been obtained or
made and are in full force and effect at the time of such extension of credit.

 

5.1.5                                           Litigation.

 

(i)                                     There are no actions, suits or
proceedings pending or, to, the knowledge of the Borrower, threatened with
respect to the Borrower or any of its Subsidiaries (a) that have, or could
reasonably be expected to have, a Material Adverse Effect except as set forth
on Schedule 5.1.5, or (b) that question the validity or
enforceability of any of the Loan Documents, or of any action to be taken by
any of the Borrower pursuant to any of the Loan Documents.

 

(ii)                                  No action, suit, proceeding or
investigation has been instituted, or to the knowledge of the Borrower or any
of its Subsidiaries, threatened, and no rule, regulation, order, judgment or
decree has been issued or proposed to be issued by any Official Body that,
solely as a result of the incurrence of Indebtedness or the entering into this
Agreement or any other Loan Document or any transaction contemplated hereby or
thereby, would cause or deem the Administrative Agent or the Lenders or any
Affiliate of any of them to be subject to, or not exempted from, regulation
under the FPA.

 

5.1.6                                           Use of
Proceeds; Margin Regulations.

 

(i)                                     The proceeds of all Loans will be
utilized to provide working capital and funds for general corporate and other
lawful purposes not inconsistent with the requirements of this Agreement
(including, without limitation, to provide backup liquidity).

 

(ii)                                  The Borrower is not engaged in the
business of extending credit for the purpose, immediately, incidentally or
ultimately, of purchasing or carrying margin stock (within the meaning of
Regulation U, T or X as promulgated by the Board of Governors of the Federal
Reserve System).  No part of the proceeds
of any Loan has been or will be used, immediately, incidentally or ultimately,
to purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying any margin stock or which is inconsistent
with the provisions of the regulations of the Board of Governors of the Federal
Reserve System.  The Borrower does not
hold margin stock in such amounts that more than 25% of the reasonable value of
the assets of the Borrower is or will be represented by margin stock.

 

5.1.7                                           Financial
Statements.  The Borrower
has furnished to the Lenders and the Administrative Agent complete and correct
copies of  the audited consolidated balance sheets 

 

35

 

of
the Borrower and its consolidated Subsidiaries as of December 31, 2008 and
the related audited consolidated statements of income, shareholders’ equity,
and cash flows of the Borrower and its consolidated Subsidiaries for such
fiscal year, accompanied by the report thereon of KPMG LLP.  All such financial statements have been
prepared in accordance with GAAP, consistently applied (except as stated
therein), and fairly present in all material respects the financial position of
the entities described in such financial statements as of the respective dates
indicated and the consolidated results of their operations and cash flows for
the respective periods indicated, subject in the case of any such financial
statements that are unaudited, to normal audit adjustments, none of which shall
be material.  As of the Closing Date, the
Borrower and its Subsidiaries do not have any material or significant
contingent liability (other than any liability incident to any litigation,
arbitration or proceeding that could not reasonably be expected to have a
Material Adverse Effect) that is not reflected in the foregoing financial
statements or the notes thereto in accordance with GAAP.

 

5.1.8                                           Material
Adverse Effect.  At no time
during the period from December 31, 2008 through the date of this
Agreement has there been a change in the financial or other condition,
business, affairs or prospects of the Borrower and its Subsidiaries taken as a
whole, or their properties and assets considered as an entirety, except for  changes none of which, individually or in the aggregate,
has had or could reasonably be expected to have, a Material Adverse Effect.

 

5.1.9                                           Taxes.  The Borrower and each of its Subsidiaries has
filed all federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all material
taxes and assessments payable by it that have become due, other than those not
yet delinquent and except for those contested in good faith.  The Borrower and each of its Subsidiaries has
established on its books such charges, accruals and reserves in respect of
taxes, assessments, fees and other governmental charges for all fiscal periods
as are required by GAAP.  The Borrower
does not know of any proposed assessment for additional federal, foreign or state
taxes for any period, or of any basis therefor, that, individually or in the
aggregate, taking into account such charges, accruals and reserves in respect
thereof as the Borrower and its Subsidiaries have made, could reasonably be
expected to have a Material Adverse Effect.

 

5.1.10                                     Title to Property.  The Borrower and each of its Subsidiaries has
good and marketable title, in the case of Real Property, and good title (or
valid Leaseholds, in the case of any leased Property), in the case of all other
Property, to all of its material properties and assets free and clear of Liens
other than Liens permitted under Section 7.2.2 [Liens].  The interests of the Borrower and each of its
Subsidiaries in the properties reflected in the most recent balance sheet
referred to in Section 5.1.7 [Financial Statements], taken as a whole,
were sufficient, in the judgment of the Borrower, as of the date of such
balance sheet for purposes of the ownership and operation of the businesses
conducted by the Borrower and such Subsidiaries.

 

5.1.11                                     Insurance.  The properties of the Borrower and each of
its Subsidiaries are insured pursuant to policies and other bonds which are
valid and in full force and effect and which provide adequate coverage from
reputable and financially sound insurers in amounts sufficient to insure the
assets and risks of the Borrower and each such Subsidiary in accordance with
prudent business practice in the industry of such Borrower and Subsidiaries.

 

36

 

5.1.12                                     ERISA
Compliance.   (i) 
As of the Closing Date, there are no Unfunded Liabilities which would result in
a Material Adverse Effect.  Each Plan
complies in all material respects with all applicable requirements of law and
regulations, no Reportable Event has occurred with respect to any Plan, neither
the Borrower nor any other member of the Controlled Group has withdrawn from
any Plan or initiated steps to do so, and no steps have been taken to
reorganize or terminate any Plan.

 

(ii)                                  Neither the
Borrower nor any of its Subsidiaries is an entity deemed to hold “plan assets”
within the meaning of 29 C.F.R. § 2510.3-101 of an employee benefit plan (as
defined in Section 3(3) of ERISA) which is subject to Title I of
ERISA or any plan (within the meaning of Section 4975 of the Code), and
neither the execution of this Agreement nor the making of Loans hereunder gives
rise to a prohibited transaction within the meaning of Section 406 of
ERISA or Section 4975 of the Code.

 

5.1.13                                     Environmental
Matters.  The Borrower
and each of its Subsidiaries is in compliance with all Environmental Laws
governing its business, except to the extent that any such failure to comply
(together with any resulting penalties, fines or forfeitures) would not
reasonably be expected to have a Material Adverse Effect.  All licenses, permits, registrations or
approvals required for the conduct of the business of the Borrower and each of
its Subsidiaries under any Environmental Law have been secured and the Borrower
and each of its Subsidiaries is in substantial compliance therewith, except for
such licenses, permits, registrations or approvals the failure to secure or to
comply therewith is not reasonably likely to have a Material Adverse
Effect.  Neither the Borrower nor any of
its Subsidiaries has received written notice, or otherwise knows, that it is in
any respect in noncompliance with, breach of or default under any applicable
writ, order, judgment, injunction, or decree to which the Borrower or such
Subsidiary is a party or that would affect the ability of the Borrower or such
Subsidiary to operate any Real Property and no event has occurred and is
continuing that, with the passage of time or the giving of notice or both,
would constitute noncompliance, breach of or default thereunder, except in each
such case, such noncompliance, breaches or defaults as would not reasonably be
expected to, in the aggregate, have a Material Adverse Effect.  There are no Environmental Claims pending or,
to the best knowledge of the Borrower, threatened wherein an unfavorable
decision, ruling or finding would reasonably be expected to have a Material
Adverse Effect.  There are no facts,
circumstances, conditions or occurrences on any Real Property now or at any
time owned, leased or operated by the Borrower or any of its Subsidiaries or on
any Property adjacent to any such Real Property, that are known by the Borrower
or as to which the Borrower or any such Subsidiary has received written notice,
that could reasonably be expected:  (i) to form the basis of an
Environmental Claim against the Borrower or any of its Subsidiaries or any Real
Property of the Borrower or any of its Subsidiaries; or (ii) to
cause such Real Property to be subject to any restrictions on the ownership,
occupancy, use or transferability of such Real Property under any Environmental
Law, except in each such case, such Environmental Claims or restrictions that
individually or in the aggregate would not reasonably be expected to have a
Material Adverse Effect.

 

5.1.14                                     Solvency.  The Borrower is not insolvent as defined in
any applicable state or federal statute, nor will the Borrower be rendered
insolvent by the execution and delivery of this Agreement or any of the Loan
Documents to the Administrative Agent and the Lenders.

 

37

 

5.1.15                                     Lawful
Operation; Compliance with Laws.  The Borrower and each of its
Subsidiaries:  (a) holds all
necessary federal, state and local governmental licenses, registrations,
certifications, permits and authorizations necessary to conduct its business; (b) is in full compliance with all material
requirements imposed by law, regulation or rule, whether federal, state or
local, that are applicable to it, its operations, or its properties and assets,
including without limitation, applicable requirements of Environmental Laws;
and (c) is in full compliance with all material terms, covenants and
conditions of any promissory note, bond, debenture, indenture, mortgage, deed
of trust, credit or loan agreement, or any other agreement or other instrument,
to which it is a party or by which it or any of its Property or assets are
bound or to which it may be subject, except in the case of clause (a), (b) or
(c) of this Section 5.1.15 for any failure to obtain and maintain in
effect, or noncompliance, that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

5.1.16                                     Intellectual
Property.  The Borrower
and each of its Subsidiaries has obtained or has the right to use all material
patents, trademarks, service marks, trade names, copyrights, licenses and other
rights with respect to the foregoing necessary for the present and planned
future conduct of its business, without any known conflict with the rights of
others, except for such patents, trademarks, service marks, trade names,
copyrights, licenses and rights, the loss of which, and such conflicts, that in
any such case individually or in the aggregate would not reasonably be expected
to have a Material Adverse Effect.

 

5.1.17                                     Investment
Company Act; Federal Power Act.  None of the
Borrower or any of its Subsidiaries is subject to regulation with respect to
the creation or incurrence of Indebtedness under the Investment Company Act of
1940, as amended.  None of the
Borrower or any of its Subsidiaries, or any Affiliate of any of them, is subject to regulation under the FPA or
under applicable state or other laws and regulations respecting the rates or
the financial or organizational regulation of electric utilities, as a result
of the creation or incurrence of the
Obligations or the entering into this Agreement or any other Loan
Document or the consummation of any transaction contemplated hereby or thereby.

 

5.1.18                            Employment
Matters. The Borrower is in compliance with all employment
agreements, employment contracts, collective bargaining agreements and other
agreements among any Loan Party and its employees (collectively, “Labor Contracts”) and all applicable federal, state and
local labor and employment Laws including those related to equal employment
opportunity and affirmative action, labor relations, minimum wage, overtime,
child labor, medical insurance continuation, worker adjustment and retraining
notices, immigration controls and worker and unemployment compensation, where
the failure to comply would constitute a Material Adverse Effect.  There are no outstanding grievances,
arbitration awards or appeals therefrom arising out of the Labor Contracts or
current or threatened strikes, picketing, handbilling or other work stoppages or
slowdowns at facilities of the Borrower which in any case would constitute a
Material Adverse Effect.

 

5.1.19                            Full
Disclosure.  All factual
information (other than financial projections and information of a general
economic nature or industry nature) (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the Borrower or any of its
Subsidiaries in writing to the Administrative Agent or any Lender for purposes
of or in connection with this Agreement or any transaction contemplated herein
is, and all other such factual information 

 

38

 

(taken
as a whole) hereafter furnished by or on behalf of such Person in writing to
any Lender will be, true and accurate in all material respects on the date as
of which such information is dated or certified and not incomplete by omitting
to state any material fact necessary to make such information (taken as a
whole) not misleading at such time in light of the circumstances under which
such information was provided, except that any such future information
consisting of pro forma information and financial projections prepared by the
Borrower is only represented herein as being based on good faith estimates and
assumptions believed by such Persons to be reasonable at the time made, it
being recognized by the Lenders that such projections as to future events are
not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ materially from the projected
results.

 

6.               CONDITIONS OF LENDING

 

The obligation of each Lender to make Loans
hereunder is subject to the performance by the Borrower of its Obligations to
be performed hereunder at or prior to the making of any such Loans and to the
satisfaction of the following further conditions:

 

6.1                            Closing.

 

6.1.1                                           Deliveries.  On the Closing Date, the Administrative Agent
shall have received each of the following in form and substance satisfactory to
the Administrative Agent:

 

(i)                                     A certificate
of the Borrower signed by an Authorized Officer, dated the Closing Date stating
that the Borrower is in material compliance with its representations,
warranties, covenants and conditions hereunder and no Event of Default or
Potential Default exists and no Material Adverse Effect has occurred and no
material litigation that has or could reasonably be expected to cause a
Material Adverse Effect exists since the date of the last audited financial
statements of the Borrower delivered to the Administrative Agent.

 

(ii)                                  A certificate
dated the Closing Date and signed by the Secretary or an Assistant Secretary of
the Borrower, certifying as appropriate as to: (a) all action taken by the
Borrower in connection with this Agreement and the other Loan Documents; (b) the
names of the Authorized Officers authorized to sign the Loan Documents and
their true signatures; and (c) copies of its organizational documents as
in effect on the Closing Date certified by the appropriate state official where
such documents are filed in a state office together with certificates from the
appropriate state officials as to the continued existence and good standing of
the Borrower in each state where organized or qualified to do business.

 

(iii)                               This Agreement
and each of the other Loan Documents signed by an Authorized Officer.

 

(iv)                              Written opinion(s) of
counsel for the Borrower, dated the Closing Date and as to the matters set
forth in Schedule 6.1.1.

 

(v)                                 [Intentionally
Omitted].

 

(vi)                              All material
consents required to effectuate the transactions contemplated hereby.

 

39

 

(vii)                           A Lien search
in acceptable scope and with acceptable results.

 

(viii)                        The Chief
Executive Officer, President or Chief Financial Officer of the Borrower, acting
in their capacities as such officers, shall have delivered a certificate in
substantially the form attached hereto as Exhibit 6.1.1 to the
Administrative Agent as to the capital adequacy and solvency of the Borrower
after giving effect to the transactions contemplated hereby.

 

(ix)                                Such other
documents in connection with such transactions as the Administrative Agent or
said counsel may reasonably request.

 

6.1.2                        Payment of Fees.  The Borrower shall have paid all fees payable
on or before the Closing Date.

 

6.2                            Each Loan.  At the time of making any Loans and after
giving effect to the proposed extensions of credit:  the representations, warranties and covenants
of the Borrower shall then be true in all material respects and no Event of
Default or Potential Default shall have occurred and be continuing; the making
of the Loans shall not contravene any Law applicable to the Borrower or any of
its Subsidiaries or any of the Lenders; and the Borrower shall have delivered
to the Administrative Agent a duly executed and completed Loan Request.

 

7.               COVENANTS

 

The Borrower covenants and agrees that until
Payment in Full, the Borrower shall comply at all times with the following
covenants:

 

7.1                            Affirmative Covenants.

 

7.1.1                                           Books, Records and Inspections. 
The Borrower will, and will cause each of its Subsidiaries to, (a) 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 or such Subsidiaries, as the case may
be, in accordance with GAAP; and (b) permit,
upon at least two Business Days’ notice to the Chief Financial Officer of the
Borrower, officers and designated representatives of the Administrative Agent
or any of the Lenders to visit and inspect any of the properties or assets of
the Borrower and any of its Subsidiaries in whomsoever’s possession (but only
to the extent the Borrower or such Subsidiary has the right to do so to the
extent in the possession of another Person), to examine the books of account of
the Borrower and any of its Subsidiaries, and make copies thereof and take
extracts therefrom, and to discuss the affairs, finances and accounts of the
Borrower and of any of its Subsidiaries with, and be advised as to the same by,
its and their officers and independent accountants and independent actuaries,
if any, all at such reasonable times and intervals and to such reasonable
extent as the Administrative Agent or any of the Lenders may request during
normal business hours; provided that unless an Event of Default shall have
occurred and be continuing, only one (1) visit shall be permitted during
any calendar year.  All costs and
expenses incurred by the Administrative Agent or any Lender in connection with
any of the foregoing shall be paid by the Administrative Agent or such Lender,
as the case may be, unless an Event of Default shall have occurred and be
continuing at the time such costs and/or expenses are incurred, in which case
all such costs and expenses shall be paid by the Borrower.  In the event any Lender desires to visit and
inspect the

 

40

 

Borrower or any of its
Subsidiaries, such Lender shall make a reasonable effort to conduct such visit
and inspection contemporaneously with any visit and inspection to be performed
by the Administrative Agent.  Notwithstanding
anything to the contrary in this Section 7.1.1., none of the Borrower or
any of its Subsidiaries will be required to disclose, permit the inspection,
examination or making copies or abstracts of, or discussion of, any document, information or
other matter that (i) constitutes non-financial trade secrets or
non-financial proprietary information, (ii) in respect of which disclosure
to the Administrative Agent (or its representatives) or any Lender (or its
representatives) is prohibited by Law or (iii) is subject to
attorney-client or similar privilege or constitutes attorney work product.

 

7.1.2                                           Insurance.  The Borrower will, and will cause each of its
Subsidiaries to, (i) maintain insurance
coverage by such insurers and in such forms and amounts and against such risks
as are generally consistent with the insurance coverage maintained by the
Borrower and its Subsidiaries at the date hereof, and (ii) forthwith
upon any Lender’s written request, furnish to such Lender such information
about such insurance as such Lender may from time to time reasonably request,
which information shall be prepared in form and detail satisfactory to such
Lender and certified by an Authorized Officer.

 

7.1.3                                           Payment of
Taxes and Claims.  The Borrower
will pay and discharge, and will cause each of its Subsidiaries to pay and
discharge, all taxes, assessments and governmental charges or levies imposed
upon it or upon its income or profits, or upon any properties belonging to it,
prior to the date on which penalties attach thereto, and all lawful claims
that, if unpaid, might become a Lien or charge upon any properties of the
Borrower or any of its Subsidiaries; provided that
neither the Borrower nor any of its Subsidiaries shall be required to pay any
such tax, assessment, charge, levy or claim that is being contested in good
faith and by proper proceedings if it has maintained adequate reserves with
respect thereto in accordance with GAAP. 
Without limiting the generality of the foregoing, the Borrower will, and
will cause each of its Subsidiaries to, pay in full all of its wage obligations
to its employees in accordance with the Fair Labor Standards Act (29 U.S.C.
Sections 206-207) and any comparable provisions of applicable law.

 

7.1.4                                           Preservation of
Existence, etc.  The Borrower
will, and will cause each of its Subsidiaries to, (a) preserve, renew and
maintain in full force and effect its legal existence and good standing under
the laws of the jurisdiction of its organization except in a transaction
permitted by Section 7.2.3 [Merger, Consolidation, Asset Sales]; (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of
which could reasonably be expected to have a Material Adverse Effect.

 

7.1.5                                           Good Repair.  The Borrower will, and will cause each of its
Subsidiaries to, ensure that its material properties and equipment used or
useful in its business in whomsoever’s possession they may be, are kept in good
repair, working order and condition, normal wear and tear excepted, and that from
time to time there are made in such properties and equipment all needful and
proper repairs, renewals, replacements, extensions, additions, 

 

41

 

betterments
and improvements, thereto, to the extent and in the manner customary for
companies in similar businesses.

 

7.1.6                                           Compliance with
Statutes, Regulations, Orders, Restrictions.  The Borrower will, and will cause each of its
Subsidiaries to, comply, in all material respects, with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, any
Official Body, in respect of the conduct of its business and the ownership of
its Property, including, without limitation, ERISA and all applicable
Environmental Laws other than those the noncompliance with which would not
have, and that would not be reasonably expected to have, a Material Adverse
Effect.

 

7.1.7                                           Use of
Proceeds.  The Borrower
will, and will cause each of its Subsidiaries to use the proceeds of all Loans
for working capital and for general corporate and other lawful purposes not
inconsistent with the requirements of this Agreement (including, without
limitation, to provide backup liquidity).

 

7.1.8                                           Senior Debt.  The Borrower will at all times ensure that (a) the claims of the Lenders in respect of the
Obligations of the Borrower will not be subordinate to, and will in all
respects rank at least pari passu with
or senior to, the claims of every unsecured creditor of the Borrower, and (b) any Indebtedness of the Borrower that is
subordinated in any manner to the claims of any other creditor of the Borrower
will be subordinated in like manner to such claims of the Lenders.

 

7.1.9                                           Anti-Terrorism
Laws.  The Borrower is not nor shall
be (i) a Person with whom any Lender is restricted from doing business
under Executive Order No. 13224 or any other Anti-Terrorism Law, (ii) engaged
in any business involved in making or receiving any contribution of funds,
goods or services to or for the benefit of such a Person or in any transaction
that evades or avoids, or has the purpose of evading or avoiding, the
prohibitions set forth in any Anti-Terrorism Law, or (iii) otherwise in
violation of any Anti-Terrorism Law.  The
Borrower shall provide to the Lenders any certifications or information that a
Lender requests to confirm compliance by the Borrower with Anti-Terrorism Laws.

 

7.2                            Negative Covenants.

 

7.2.1                                           Changes in
Business.  Neither the Borrower nor any of its
Subsidiaries will engage in any business if, as a result, the general nature of
the business, taken on a consolidated basis, that would then be engaged in by
the Borrower and its Subsidiaries, would be substantially changed from the
general nature of the business engaged in by the Borrower and its Subsidiaries
on the Closing Date.

 

7.2.2                                           Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any Property or assets of any kind (real or personal,
tangible or intangible) of the Borrower or any such Subsidiary whether now
owned or hereafter acquired, or sell any such Property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such
Property or assets (including, without limitation, sales of accounts receivable
or notes with or without recourse to the Borrower or any of its Subsidiaries,
other than for purposes of collection of 

 

42

 

delinquent
accounts in the ordinary course of business) or assign any right to receive
income, or file or permit the filing of any financing statement under the UCC
or any other similar notice of Lien under any similar recording or notice
statute, except that the foregoing restrictions shall not apply to:

 

(i)                                     the Standard Permitted
Liens;

 

(ii)                                  Liens (1) in existence on the Closing Date that are
listed, and the Indebtedness secured thereby and the Property subject thereto
on the Closing Date described, on Schedule 7.2.2, or (2) arising out of the refinancing, extension, renewal
or refunding of any Indebtedness secured by any such Liens, provided that the principal amount of such Indebtedness is
not increased and such Indebtedness is not secured by any additional assets;

 

(iii)                               Liens on
Property of the Borrower securing the Borrower’s First Mortgage Bonds issued
pursuant to the Indenture, dated as of October 1, 1935, as amended,
supplemented or otherwise modified from time to time, between the Borrower and
The Bank of New York Mellon (or its predecessors or successors);

 

(iv)                              Liens on
Property of the Borrower in connection with collateralized pollution
control bonds;

 

(v)                                 any (1) Lien  existing on any Property at the time such Property is
acquired by the Borrower or any of its Subsidiaries or on any Property of any
Person at the time such Person becomes, or is merged into, a Subsidiary of the
Borrower, provided that (A) such
Lien is not created in contemplation of or in connection with such acquisition
or such Person becoming, or being merged into, such Subsidiary, as the case may
be, (B) such Lien shall not attach or apply to
any other Property or assets of the Borrower or any of its Subsidiaries, and (C) such Lien shall secure only those
obligations that it secures on the date of such acquisition or the date such
Person becomes, or is merged into, such Subsidiary, as the case may be, and any
extension or refinancing thereof, so long as the aggregate principal amount so
extended or refinanced is not increased, and (2) Lien securing
Indebtedness in respect of purchase money obligations for the acquisition,
lease, construction or improvement of fixed assets or Capital Lease
Obligations, provided that (A) such Lien
only attaches to such fixed assets being acquired, leased, constructed or
improved and (B) the Indebtedness secured by such Lien does not exceed the
cost or fair market value, whichever is lower, of the fixed assets being
acquired, leased, constructed or improved on the date of acquisition, lease,
construction or improvement; provided, however,
that the aggregate principal amount of Indebtedness at any time outstanding
secured by a Lien described in this subsection (v) shall not exceed an
amount equal to 5% of the Consolidated Tangible Assets at such time.

 

7.2.3                                           Merger,
Consolidation, Asset Sales.  The Borrower
will not, and will not permit any of its Subsidiaries to, (a) wind up,
liquidate or dissolve its affairs, (b) enter into any transaction of
merger or consolidation, (c) make or otherwise effect any Asset Sale, or (d) agree
to do any of the foregoing at any future time, except that the following shall
be permitted:

 

(i)                                     a Subsidiary of the Borrower
may merge with the Borrower, provided that the surviving Person in any such
merger shall be the Borrower;

 

43

 

(ii)                                  any Subsidiary of the
Borrower may merge with another Subsidiary of the Borrower;

 

(iii)                               any Subsidiary of the
Borrower may merge with any Person (other than the Borrower or any other
Subsidiary of the Borrower), provided that (A) the surviving Person in any
such merger shall be such Subsidiary and (B) immediately before and after
such merger there shall not exist any Potential Default or Event of Default;

 

(iv)                              the Borrower may merge with
any Person (other than a Subsidiary of the Borrower), provided that (A) the
surviving Person in any such merger shall be the Borrower and (B) immediately
before and after such merger there shall not exist any Potential Default or
Event of Default;

 

(v)                                 any Subsidiary of the
Borrower may make or effect any Asset Sale to the Borrower or another
Wholly-Owned Subsidiary of the Borrower;

 

(vi)                              the Borrower may wind up,
voluntarily liquidate or dissolve any Subsidiary if (A) such Subsidiary is
not a “Significant Subsidiary” (as defined in Rule 1-02
of Regulation S-X under the 1933 Act), and (B) the winding up, voluntary
liquidation or dissolution of such Subsidiary will not result in an Event of
Default hereunder or otherwise have a Material Adverse Effect;

 

(vii)                           in addition to any Asset
Sale permitted pursuant to any other subpart in this Section 7.2.3, the
Borrower and its Subsidiaries may make or effect other Asset Sales so long as (A) the
aggregate amount (based upon the fair market value of the assets) of all
Property sold or otherwise disposed pursuant to all such Asset Sales on and after
the Closing Date does not constitute a Substantial Portion of the Property of
the Borrower and its Subsidiaries at the time of and after giving effect to any
such Asset Sale and (B) at least 80% of the total consideration received
by the Borrower or any of its Subsidiaries, as applicable, for such Asset Sale
or series of Asset Sales consists of cash or Cash Equivalents;

 

(viii)                        the Borrower and its
Subsidiaries shall be permitted to create, incur, assume and suffer to exist
Liens permitted pursuant to Section 7.2.2 [Liens]; and

 

(ix)                                the Borrower and its Subsidiaries shall
be permitted to make and dispose of the Investments permitted pursuant to Section 7.2.5
[Investments].

 

7.2.4                                           Fiscal Year.  The Borrower shall not, and shall not permit
any Subsidiary of the Borrower to, change its fiscal year from the twelve-month
period beginning January 1 and ending December 31.

 

7.2.5                                           Investments.  The
Borrower will not, and will not permit any of its Subsidiaries to, make or hold
any Investments, except (a) Investments held by the Borrower or any of its
Subsidiaries in cash or Cash Equivalents; (b) Investments of the Borrower
in any of its Subsidiaries; (c) Investments of a Subsidiary of the
Borrower in the Borrower or another Subsidiary of the Borrower; (d) Permitted
Acquisitions; (e) Investments by the Borrower and its Subsidiaries in
account debtors received in connection with the bankruptcy or reorganization,
or in settlement of the delinquent obligations of financially troubled
suppliers or customers, in the 

 

44

 

ordinary course of business; (f) promissory
notes, earn-outs, other contingent payment obligations and other non-cash
consideration received by Borrower or any of its Subsidiaries as partial
payment of the total consideration of any Asset Sale made in accordance with Section 7.2.3(vii);
(g) loans and advances by the Borrower and its Subsidiaries to their
respective employees in an aggregate amount not to exceed $1,000,000, at any
time outstanding; (h) Investments comprised of the purchase of receivables
from other energy marketers as required from time to time by one or more
applicable Official Body; (i) other Investments held by the Borrower or
its Subsidiaries on the Closing Date that are listed on Schedule 7.2.5;
and (j) Investments by the Borrower and its Subsidiaries not otherwise
permitted under this Section 7.2.5 in an aggregate amount not to exceed
$5,000,000, at any time.

 

7.2.6                                           Transactions
with Affiliates.  The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any
transaction or series of transactions with any Affiliate (other than, in the
case of the Borrower, any Subsidiary of the Borrower, and in the case of a
Subsidiary of the Borrower, the Borrower or another Subsidiary of the Borrower)
other than in the ordinary course of business of and pursuant to the reasonable
requirements of the Borrower’s or such Subsidiary’s business and upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary than would
be obtained in a comparable arm’s-length transaction with a Person other than
an Affiliate, except (i) sales of goods to an
Affiliate for use or distribution outside the United States that in the good
faith judgment of the Borrower complies with any applicable legal requirements
of the Code, or (ii) agreements and
transactions with and payments to officers, directors and shareholders that are
either (A) entered into in the ordinary course
of business and not prohibited by any of the provisions of this Agreement, or (B) entered into outside the ordinary course of
business, approved by the directors or shareholders of the Borrower, and not
prohibited by any of the provisions of this Agreement.

 

7.2.7                                           Material
Agreements.  Neither the
Borrower nor any Subsidiary of the Borrower shall default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement, instrument or other document to which the Borrower
or such Subsidiary, as applicable, is a party, which default could reasonably
be expected to have a Material Adverse Effect.

 

7.2.8                                           Use of
Proceeds/Margin Regulations.  The Borrower
will not, and will not permit any of its Subsidiaries to, use any part of the
proceeds of any Borrowing, directly or indirectly, to purchase or carry Margin
Stock, or to extend credit to others for the purpose of purchasing or carrying
any Margin Stock, in violation of any of the provisions of Regulation T, U or X
of the Board of Governors of the Federal Reserve System.

 

7.2.9                                           No Dividend
Restrictions.  The Borrower
shall not permit any of its Subsidiaries to enter into any agreement or
otherwise create or cause or permit to exist or become effective any consensual
restriction limiting the ability (whether by covenant, event of default or
otherwise) of such Subsidiary to (i) pay dividends or make any other
distributions on shares of such Subsidiary’s capital stock held by the Borrower
or any other Subsidiary of the Borrower or (ii) pay any other obligation
owed to the Borrower or any other Subsidiary of the Borrower, provided, however, that
this clause (ii) shall not apply to Permitted Restrictive Covenants.

 

45

 

7.2.10                                     Swap
Agreements.  The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any Swap
Agreement other than Swap Agreements pursuant to which the Borrower or such
Subsidiary has hedged its reasonably estimated interest rate, foreign currency
or commodity exposure, and not for speculative purposes.

 

7.2.11                                     Financial
Covenant.  The Borrower
will not at any time permit the ratio of (i) Consolidated
Total Debt to (ii) Consolidated Total
Capitalization to exceed 0.65 to 1.00.

 

7.3                     Reporting
Requirements.  The Borrower
will furnish or cause to be furnished to the Administrative Agent and each of
the Lenders.

 

7.3.1                                           Annual
Financial Statements.  As
soon as available and in any event within 90 days after the close of each
fiscal year of the Borrower, commencing with the fiscal year ending December 31,
2008, the consolidated and consolidating balance sheets of the Borrower and its
consolidated Subsidiaries as at the end of such fiscal year and the related
consolidated and consolidating statements of income, of stockholders’ equity
and of cash flows for such fiscal year, in each case setting forth comparative
figures for the preceding fiscal year, all in reasonable detail and accompanied
by an opinion with respect to such consolidated financial statements of KPMG
LLP or other independent public accountants of recognized national standing
selected by the Borrower, which opinion shall be unqualified and shall (i) state that such accountants audited such
consolidated financial statements in accordance with generally accepted
auditing standards, that such accountants believe that such audit provides a
reasonable basis for their opinion, and that in their opinion such consolidated
financial statements present fairly, in all material respects, the consolidated
financial position of the Borrower and its consolidated Subsidiaries as at the
end of such fiscal year and the consolidated results of their operations and
cash flows for such fiscal year in conformity with generally accepted
accounting principles, or (ii) contain such
statements as are customarily included in unqualified reports of independent
accountants in conformity with the recommendations and requirements of the
American Institute of Certified Public Accountants (or any successor
organization).

 

7.3.2                                           Quarterly
Financial Statements.  As
soon as available and in any event within 45 days after the close of each of
the first three quarterly accounting periods in each fiscal year of the
Borrower, the unaudited consolidated and consolidating balance sheets of the
Borrower and its consolidated Subsidiaries as at the end of such quarterly
period and the related unaudited consolidated and consolidating statements of
income and of cash flows for such quarterly period and/or for the fiscal year
to date, and setting forth, in the case of such unaudited consolidated
statements of income and of cash flows, comparative figures for the related
periods in the prior fiscal year, and that shall be certified on behalf of the
Borrower by the Chief Financial Officer or other Authorized Officer, subject to
changes resulting from normal year-end audit adjustments.

 

7.3.3                                           Certificate of
the Borrower.  Concurrently
with the delivery of the financial statements of the Borrower furnished to the
Administrative Agent and to the Lenders pursuant to Sections 7.3.1 [Annual
Financial Statements] and 7.3.2 [Quarterly Financial Statements], a certificate
(each a “Compliance Certificate”) of the
Borrower signed by the 

 

46

 

Chief
Executive Officer, President or Chief Financial Officer of the Borrower, in the
form of Exhibit 7.3.3.

 

7.3.4                                           Notices.

 

7.3.4.1                                  Default.  Promptly
after any officer of the Borrower has learned of the occurrence of an Event of
Default, Potential Default or default in the observance or performance of any
other covenant, condition or provision hereof or of any other Loan Document, a
certificate signed by an Authorized Officer setting forth the details of such
Event of Default, Potential Default or default and the action which the
Borrower proposes to take with respect thereto.

 

7.3.4.2                                  Litigation.  Promptly
after the commencement thereof, notice of all actions, suits or proceedings
before or by any Official Body or any other Person against the Borrower or its
Subsidiaries, that involve a claim or series of claims which if adversely
determined would constitute a Material Adverse Effect.

 

7.3.4.3                                  Organizational Documents. 
Promptly after the filing or adopting thereof, notice of any amendment
to the organizational documents of the Borrower.

 

7.3.4.4                                  [Intentionally Omitted].

 

7.3.4.5                                  ERISA Event. 
Promptly upon the occurrence of any Reportable Event has occurred with
respect to any Plan, a statement, signed by an Authorized Officer, describing
such Reportable Event and the action that the Borrower proposes to take with
respect thereto.

 

7.3.4.6                                  Single Employer Plans. 
Within 270 days after the close of each fiscal year of the Borrower, the
Borrower will deliver to each of the Lenders a statement of the Unfunded
Liabilities, certified as correct by an actuary enrolled under ERISA.

 

7.3.4.7                                  Environmental Event. 
Promptly after receipt thereof by the Borrower or any Subsidiary of the
Borrower, a copy of (a) any notice or claim to the effect that the
Borrower or any of its Subsidiaries is or may be liable to any Person as a
result of the release by the Borrower, any of its Subsidiaries, or any other
Person of any Hazardous Materials into the environment, and (b) any notice
alleging any violation of any Environmental Law by the Borrower or any of its
Subsidiaries, which in the case of either (a) or (b) above could
reasonably be expected to have a Material Adverse Effect.

 

7.3.4.8                                  Other Reports.

 

(i)                                     SEC Reports;
Shareholder Communications.  Promptly after their filing with the SEC,
reports, including Forms 10-K, 10-Q and 8-K, registration statements and
prospectuses and other shareholder communications, filed by the Borrower with
the SEC,

 

(ii)                                  Other
Information.  Promptly
such other reports and information relating to the Borrower or its Subsidiaries
as the Administrative Agent may from time to time reasonably request.

 

47

 

8.               DEFAULT

 

8.1                     Events of
Default.  An Event of
Default shall mean the occurrence or existence of any one or more of the
following events or conditions (whatever the reason therefor and whether
voluntary, involuntary or effected by operation of Law):

 

8.1.1                                           Payments Under
Loan Documents.  The Borrower
shall (i) default in the payment when due
(whether at maturity, on a date fixed for a scheduled repayment, on a date on
which a required prepayment is to be made, upon acceleration or otherwise) of
any principal of the Loans; or (ii) default,
and such default shall continue for five or more days, in the payment when due
of any interest on the Loans or any Fees or any other amounts owing hereunder
or under any other Loan Document;

 

8.1.2                                           Breach of
Warranty.  Any
representation, warranty or statement made by the Borrower herein or in any
other Loan Document (other than pursuant to Section 5.1.12(ii)) or in any
statement or certificate delivered or required to be delivered pursuant hereto
or thereto shall prove to be untrue in any material respect on the date as of
which made or deemed made;

 

8.1.3                                           Breach of
Negative Covenants or Visitation Rights.  the Borrower shall default in the due
performance or observance by it of any term, covenant or agreement contained in
Sections 7.1.1(b), 7.1.4 [Preservation of Existence, etc.], 7.1.7 [Use of
Proceeds], 7.1.8 [Senior Debt], 7.2[Negative Covenants] or 7.3 [Reporting
Requirements] of this Agreement;

 

8.1.4                                           Breach of Other
Covenants.  The Borrower
shall default in the observance or performance of any other covenant, condition
or provision hereof or of any other Loan Document and such default shall
continue unremedied for a period of thirty (30) days after notice thereof from
the Administrative Agent;

 

8.1.5                                           Defaults in
Other Agreements or Indebtedness.  The Borrower or any of its Subsidiaries shall (i) default in any payment with respect to any
Indebtedness (other than the Obligations), and all grace periods applicable to
such payment shall have expired, in an aggregate amount in excess of
$10,000,000, regardless of whether the holder or holders of said Indebtedness
(or a trustee or agent on behalf of such holder or holders) exercises its rights,
if any, to cause such Indebtedness to become due and payable prior to its
stated maturity; or (ii) default in the
observance or performance of any agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing
or relating thereto (and all grace periods applicable to such observance,
performance or condition shall have expired), or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause any such Indebtedness to
become due prior to its stated maturity, or any such Indebtedness of the
Borrower or any of its Subsidiaries shall be declared to be due and payable, or
shall be required to be prepaid (other than by a regularly scheduled required
prepayment or redemption, prior to the stated maturity thereof);

 

48

 

8.1.6                                           Final Judgments
or Orders.  One or more
judgments, orders or decrees shall be entered against the Borrower and/or any
of its Subsidiaries involving a liability (other than a liability covered by
insurance, as to which the carrier has adequate claims paying ability and has
not effectively reserved its rights) of $10,000,000 or more in the aggregate
for all such judgments, orders and decrees for the Borrower and its
Subsidiaries, and any such judgments or orders or decrees shall not have been
vacated, discharged or stayed or bonded pending appeal within 30 days from the
entry thereof;

 

8.1.7                                           Loan Document
Unenforceable.  Any of the
Loan Documents shall cease to be legal, valid and binding agreements
enforceable against the party executing the same or such party’s successors and
assigns (as permitted under the Loan Documents) in accordance with the
respective terms thereof or shall in any way be terminated (except in
accordance with its terms) or become or be declared ineffective or inoperative
or shall in any way be challenged or contested or cease to give or provide the
respective rights, interests, remedies, powers or privileges intended to be
created thereby;

 

8.1.8                                           Events Relating
to Plans and Benefit Arrangements.  (i) any
member of the Borrower’s Controlled Group shall fail to pay when due an amount
or amounts aggregating in excess of $30,000,000 which it shall have become
liable to pay under Title IV of ERISA, or notice of intent to terminate a Plan
or Plans of such Borrower which in the aggregate have Unfunded Liabilities in
excess of $30,000,000 shall be filed under Title IV of ERISA by such Borrower
or any member of the Controlled Group, any plan administrator of the Plan or
Plans or any combination of the foregoing or any Reportable Event that would
reasonably be expected to have a Material Adverse Effect shall occur in
connection with any Plan; (ii) the Borrower or any member of the
Controlled Group shall have been notified by the sponsor of a Multiemployer
Plan that it has incurred withdrawal liability to such Multiemployer Plan in an
amount that, when aggregated with all other amounts required to be paid to
Multiemployer Plans by the Borrower or any other member of the Controlled Group
as withdrawal liability (determined as of the date of such notification), exceeds
$10,000,000 or requires payment exceeding $10,000,000 per annum; or (iii) the
Borrower or any other member of the Controlled Group shall have been notified
by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
if as a result of such reorganization or termination the aggregate annual
contribution of the Borrower and the other members of the Controlled Group
(taken as a whole) to all Multiemployer Plans that are then in reorganization
or being terminated have been or will be increased over the amounts contributed
to such Multiemployer Plans for the respective plan years of each such
Multiemployer Plan immediately preceding the plan in year in which the reorganization
or termination occurs by an amount exceeding $10,000,000;

 

8.1.9                                           Change of
Control.  There occurs
a Change of Control; or

 

8.1.10                                     Relief
Proceedings.  (i) A
Relief Proceeding shall have been instituted against the Borrower or any of its
Subsidiaries and such Relief Proceeding shall remain undismissed or unstayed
and in effect for a period of sixty (60) consecutive days or such court shall
enter a decree or order granting any of the relief sought in such Relief
Proceeding, (ii) the Borrower or any of its Subsidiaries institutes, or
takes any action in furtherance of, a Relief 

 

49

 

Proceeding,
or (iii) the Borrower or any of its Subsidiaries ceases to be solvent or
admits in writing its inability to pay its debts as they mature.

 

8.2                            Consequences of Event of Default.

 

8.2.1                                           Events of
Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings.  If an Event of Default specified under
Sections 8.1.1 through 8.1.9 shall occur and be continuing, the Lenders
and the Administrative Agent shall be under no further obligation to make Loans
and the Administrative Agent may, and upon the request of the Required Lenders,
shall by written notice to the Borrower, declare the unpaid principal amount
of the Loans then outstanding and all interest accrued thereon, any unpaid fees
and all other Indebtedness of the Borrower to the Lenders hereunder and
thereunder to be forthwith due and payable, and the same shall thereupon become
and be immediately due and payable to the Administrative Agent for the benefit
of each Lender without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived; and

 

8.2.2                                           Bankruptcy,
Insolvency or Reorganization Proceedings.  If an Event of Default specified under Section 8.1.10
[Relief Proceedings] shall occur, the Lenders shall be under no further
obligations to make Loans hereunder and the unpaid principal amount of the
Loans then outstanding and all interest accrued thereon, any unpaid fees and
all other Indebtedness of the Borrower to the Lenders hereunder and thereunder
shall be immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived; and

 

8.2.3                                           Set-off.  If an Event of Default shall have occurred
and be continuing, each Lender, and each of their respective Affiliates and any
participant of such Lender or Affiliate which has agreed in writing to be bound
by the provisions of Section 4.3 [Sharing of Payments] is hereby
authorized at any time and from time to time, to the fullest extent permitted
by applicable Law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any
time held and other Obligations (in whatever currency) at any time owing by
such Lender, or any such Affiliate or participant 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 or any other Loan Document to
such Lender, Affiliate or participant, irrespective of whether or not such
Lender, Affiliate or participant shall have made any demand under this
Agreement or any other Loan Document and although such Obligations of the Borrower
may be contingent or unmatured or are owed to a branch or office of such Lender
different from the branch or office holding such deposit or obligated on such
Indebtedness.  The rights of each Lender
and their respective Affiliates and participants under this Section are in
addition to other rights and remedies (including other rights of setoff) that
such Lender or its respective Affiliates and participants may have.  Each Lender agrees to notify the Borrower and
the Administrative Agent promptly after any such setoff and application;
provided that the failure to give such notice shall not affect the validity of
such setoff and application; and

 

8.2.4                                           Application of
Proceeds.  From and
after the date on which the Administrative Agent has taken any action pursuant
to this Section 8.2 and until all Obligations of the Borrower have been
paid in full, any and all proceeds received by the Administrative

 

50

 

Agent
from any sale or other disposition of any of the Borrower’s assets, or any part
thereof, or the exercise of any other remedy by the Administrative Agent, shall
be applied as follows:

 

(i)                                     first, to
reimburse the Administrative Agent and the Lenders for out-of-pocket costs,
expenses and disbursements, including reasonable attorneys’ and paralegals’
fees and legal expenses, incurred by the Administrative Agent or the Lenders in
connection with realizing on any of the Borrower’s assets or collection of any
Obligations of any of the Borrower under any of the Loan Documents, including
advances made by the Lenders or any one of them or the Administrative Agent for
the reasonable maintenance, preservation, protection or enforcement of, or
realization upon, the assets, including advances for taxes, insurance, repairs
and the like and reasonable expenses incurred to sell or otherwise realize on,
or prepare for sale or other realization on, any of the Borrower’s assets;

 

(ii)                                  second, to the
repayment of all Obligations then due and unpaid of the Borrower to the Lenders
or their Affiliates incurred under this Agreement or any of the other Loan
Documents or agreements evidencing Lender Provided Swaps or Other Lender
Provided Financial Service Products, whether of principal, interest, fees,
expenses or otherwise; and

 

(iii)                               the balance, if
any, as required by Law.

 

9.               THE ADMINISTRATIVE AGENT

 

9.1                     Appointment and
Authority.  Each of the
Lenders hereby irrevocably appoints PNC to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.  The provisions of
this Section 9 are solely for the benefit of the Administrative Agent, the
Lenders and the Borrower shall not have rights as a third party beneficiary of
any of such provisions.

 

9.2                     Rights as a
Lender.  The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

9.3                     Exculpatory
Provisions.  The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

 

(a)                                  shall not be subject to any
fiduciary or other implied duties, regardless of whether a Potential Default or
Event of Default has occurred and is continuing;

 

51

 

(b)                                 shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan
Documents); provided that the Administrative Agent shall not be required
to take any action that, in its opinion or the opinion of its counsel, may
expose the Administrative Agent to liability or that is contrary to any Loan
Document or applicable Law; and

 

(c)                                  shall not, except as
expressly set forth herein and in the other Loan Documents, have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as the Administrative Agent or any of its
Affiliates in any capacity.

 

The Administrative Agent shall not be liable
for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in
good faith shall be necessary, under the circumstances as provided in
Sections 10.1 [Modifications, Amendments or Waivers] and 8.2 [Consequences
of Event of Default]) or (ii) in the absence of its own gross negligence
or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Potential
Default or Event of Default unless and until notice describing such Potential
Default or Event of Default is given to the Administrative Agent by the
Borrower or a Lender.

 

The Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Potential Default or Event of Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Section 6 [Conditions of
Lending] or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

 

9.4                     Reliance by
Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) reasonably
believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and reasonably believed by it to have been made by the proper Person,
and shall not incur any liability for relying thereon.  In determining compliance with any condition
hereunder to the making of a Loan that by its terms must be fulfilled to the
satisfaction of a Lender, the Administrative Agent may presume that such condition
is satisfactory to such Lender unless the Administrative Agent shall have
received notice to the contrary from such Lender prior to the making of such
Loan.  The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent 

 

52

 

accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

 

9.5                     Delegation of
Duties.  The Administrative Agent may
perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. 
The Administrative Agent and any such sub-agent may perform any and all
of its duties and exercise its rights and powers by or through their respective
Related Parties.  The exculpatory
provisions of this Section 9 shall apply to any such sub-agent and to the
Related Parties of the Administrative Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative
Agent.

 

9.6                     Resignation of
Administrative Agent.  The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right,
with approval from the Borrower (so long as no Event of Default has occurred
and is continuing), to appoint a successor, such approval not to be
unreasonably withheld or delayed.  If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided
that if the Administrative Agent shall notify the Borrower and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (i) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (ii) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this Section 9.6. 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this
Section).  The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Section 9 and Section 10.3
[Expenses; Indemnity; Damage Waiver] shall continue in effect for the benefit
of such retiring Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any
of them while the retiring Administrative Agent was acting as Administrative
Agent.

 

9.7                     Non-Reliance on
Administrative Agent and Other Lenders.  Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such 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 Administrative Agent or any other Lender or any of their
Related Parties and based on such 

 

53

 

documents
and information as it shall from time to time deem appropriate, continue to
make its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

9.8                     No Other
Duties, etc.  Anything
herein to the contrary notwithstanding, none of the Lenders listed on the cover
page hereof shall have any powers, duties or responsibilities under this
Agreement or any of the other Loan Documents, except in its capacity, as
applicable, as the Administrative Agent or as a Lender hereunder.

 

9.9                     Administrative
Agent’s Fee.  The Borrower
shall pay to the Administrative Agent a nonrefundable fee (the “Administrative Agent’s Fee”) under the terms of a letter
(the “Administrative Agent’s Letter”) between
the Borrower and Administrative Agent, as amended from time to time.

 

9.10               No Reliance on
Administrative Agent’s Customer Identification Program.  Each Lender acknowledges and agrees that
neither such Lender, nor any of its Affiliates, participants or assignees, may
rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other
obligations required or imposed under or pursuant to the USA Patriot Act or the
regulations thereunder, including the regulations contained in 31 CFR 103.121
(as hereafter amended or replaced, the “CIP Regulations”),
or any other Anti-Terrorism Law, including any programs involving any of the
following items relating to or in connection with the Borrower, its Affiliates
or their agents, the Loan Documents or the transactions hereunder or
contemplated hereby: (i) any identity verification procedures, (ii) any
recordkeeping, (iii) comparisons with government lists, (iv) customer
notices or (v) other procedures required under the CIP Regulations or such
other Laws.

 

10.         MISCELLANEOUS

 

10.1               Modifications, Amendments or
Waivers.  With the
written consent of the Required Lenders, the Administrative Agent, acting on
behalf of all the Lenders, and the Borrower may from time to time enter into
written agreements amending or changing any provision of this Agreement or any
other Loan Document or the rights of the Lenders or the Borrower hereunder or
thereunder, or may grant written waivers or consents hereunder or
thereunder.  Any such agreement, waiver
or consent made with such written consent shall be effective to bind all the
Lenders and the Borrower; provided, that no such agreement, waiver or
consent may be made which will:

 

10.1.1                                     Increase of
Commitment.  Increase the
amount of the Commitment of any Lender hereunder without the consent of such
Lender;

 

10.1.2                                     Extension of
Payment; Reduction of Principal Interest or Fees; Modification of Terms of
Payment.  Whether or
not any Loans are outstanding, extend the Expiration Date or the time for
payment of principal or interest of any Loan, the Facility Fee or any other fee
payable to any Lender, or reduce the principal amount of or the rate of
interest borne by any Loan or reduce the Facility Fee or any other fee payable
to any Lender, without the consent of each Lender directly affected thereby;

 

54

 

10.1.3                                     Miscellaneous.  Amend Section 4.2 [Pro Rata Treatment of
Lenders], 9.3 [Exculpatory Provisions, Etc.] or 4.3 [Sharing of Payments by
Lenders] or this Section 10.1, alter any provision regarding the pro rata
treatment of the Lenders or requiring all Lenders to authorize the taking of
any action or reduce any percentage specified in the definition of Required
Lenders, in each case without the consent of all of the Lenders (other than
Defaulting Lenders);

 

provided that no agreement, waiver
or consent which would modify the interests, rights or obligations of the
Administrative Agent without the written consent of such Administrative Agent,
and provided, further that, if in connection with any proposed waiver,
amendment or modification referred to in Sections 10.1.1 through 10.1.3 above,
the consent of the Required Lenders is obtained but the consent of one or more
of such other Lenders whose consent is required is not obtained (each a “Non-Consenting Lender”), then the Borrower shall have the
right to replace any such Non-Consenting Lender with one or more replacement
Lenders pursuant to Section 4.6.2 [Replacement of a Lender].

 

10.2               No Implied Waivers;
Cumulative Remedies.  No course of
dealing and no delay or failure of the Administrative Agent or any Lender in
exercising any right, power, remedy or privilege under this Agreement or any
other Loan Document shall affect any other or future exercise thereof or
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any further exercise thereof or of any other right, power, remedy or
privilege.  The rights and remedies of
the Administrative Agent and the Lenders under this Agreement and any other
Loan Documents are cumulative and not exclusive of any rights or remedies which
they would otherwise have.

 

10.3               Expenses; Indemnity; Damage
Waiver.

 

10.3.1                                     Costs and
Expenses.  The Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent), and shall pay all
reasonable fees and time charges and disbursements for attorneys who may be
employees of the Administrative Agent, in connection with the syndication of
the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby
shall be consummated), (ii) all reasonable out-of-pocket expenses incurred
by the Administrative Agent and each Lender (including the reasonable fees,
charges and disbursements of any counsel for the Administrative Agent, any
Lender), and shall pay all reasonable fees and time charges for attorneys who
may be employees of the Administrative Agent, any Lender, in connection with
the enforcement or protection of its rights (A) in connection with this
Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made hereunder, including all
such reasonable out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans, and (iv) all
reasonable out-of-pocket expenses of the Administrative Agent’s regular
employees and agents engaged periodically to perform audits of the Borrower’s
books, records and business properties in accordance with this Agreement.

 

55

 

10.3.2                                     Indemnification
by the Borrower.  The Borrower
shall indemnify the Administrative Agent (and any sub-agent thereof), each
Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee), and shall
indemnify and hold harmless each Indemnitee from all reasonable fees and time
charges and disbursements for attorneys who may be employees of any Indemnitee,
incurred by any Indemnitee or asserted against any Indemnitee by any third
party or by the Borrower arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any
Loan or the use or proposed use of the proceeds therefrom, (iii) breach of
representations, warranties or covenants of the Borrower under the Loan
Documents, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, including any
such items or losses relating to or arising under Environmental Laws or
pertaining to environmental matters, whether based on contract, tort or any
other theory, whether brought by a third party or by the Borrower and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee, (y) result from a claim brought by the Borrower against
an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower has obtained a
final and nonappealable judgment in its favor on such claim as determined by a
court of competent jurisdiction, or (z) arise solely out of an examination
of a Lender by an regulatory or other governmental authority having
jurisdiction over it and such examination is not related to any action or
inaction of the Borrower or its Subsidiaries.

 

10.3.3                                     Reimbursement
by Lenders.  To the
extent that the Borrower for any reason fails to indefeasibly pay any amount
required under Sections 10.3.1 [Costs and Expenses] or 10.3.2 [Indemnification
by the Borrower] to be paid by it to the Administrative Agent (or any sub-agent
thereof), or any Related Party of any of the foregoing, each Lender severally
agrees to pay to the Administrative Agent (or any such sub-agent), or such
Related Party, as the case may be, such Lender’s Ratable Share (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent) in
connection with such capacity.

 

10.3.4                                     Waiver of
Consequential Damages, Etc.  To the fullest extent permitted by applicable
Law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or the use of the proceeds thereof.  No 

 

56

 

Indemnitee
referred to in Section 10.3.2 [Indemnification by Borrower] shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby.

 

10.3.5                                     Payments.  All amounts due under this Section shall
be payable not later than ten (10) days after demand therefor.

 

10.4               Holidays.  Whenever payment of a Loan to be made or
taken hereunder shall be due on a day which is not a Business Day such payment
shall be due on the next Business Day (except as provided in Section 3.2
[Interest Periods]) and such extension of time shall be included in computing
interest and fees, except that the Loans shall be due on the Business Day
preceding the Expiration Date if the Expiration Date is not a Business Day.  Whenever any payment or action to be made or
taken hereunder (other than payment of the Loans) shall be stated to be due on
a day which is not a Business Day, such payment or action shall be made or
taken on the next following Business Day, and such extension of time shall not
be included in computing interest or fees, if any, in connection with such
payment or action.

 

10.5               Notices; Effectiveness;
Electronic Communication.

 

10.5.1                                     Notices
Generally.  Except in
the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in Section 10.5.2 [Electronic
Communications]), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier (i) if
to a Lender, to it at its address set forth in its administrative
questionnaire, or (ii) if to any other Person, to it at its address set
forth on Schedule 1.1(B).

 

Notices sent by hand or overnight courier service,
or mailed by certified or registered mail, shall be deemed to have been given
when received; notices sent by telecopier shall be deemed to have been given
when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the
next Business Day for the recipient). 
Notices delivered through electronic communications to the extent
provided in Section 10.5.2 [Electronic Communications], shall be effective
as provided in such Section.

 

10.5.2                                     Electronic
Communications.  Notices and
other communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices to any Lender if such Lender has
notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications; provided, further, that delivery of
the information required to be delivered by the Borrower to
the Administrative Agent and each of the Lenders pursuant to 

 

57

 

Sections
7.3.1, 7.3.2 and 7.3.4.8(i) by electronic correspondence to the
Administrative Agent at the e-mail address provided by the
Administrative Agent to the Borrower, as the same may be updated from time to
time, shall satisfy the Borrower’s obligation to deliver such information.  Unless the Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from
the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement); provided
that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next Business Day for the
recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

10.5.3                                     Change of
Address, Etc.  Any party
hereto may change its address, e-mail address or telecopier number for notices
and other communications hereunder by notice to the other parties hereto.

 

10.6               Severability.  The provisions of this Agreement are intended
to be severable.  If any provision of
this Agreement shall be held invalid or unenforceable in whole or in part in
any jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without in any manner
affecting the validity or enforceability thereof in any other jurisdiction or
the remaining provisions hereof in any jurisdiction.

 

10.7               Duration; Survival.  All representations and warranties of the
Borrower contained herein or made in connection herewith shall survive the
execution and delivery of this Agreement, the completion of the transactions
hereunder and Payment In Full.  All
covenants and agreements of the Borrower contained herein relating to the
payment of principal, interest, premiums, additional compensation or expenses
and indemnification, including those set forth in the Notes, Section 4
[Payments] and Section 10.3 [Expenses; Indemnity; Damage Waiver], shall
survive Payment in Full.  All other
covenants and agreements of the Borrower shall continue in full force and
effect from and after the date hereof and until Payment in Full.

 

10.8               Successors and Assigns.

 

10.8.1                                     Successors and
Assigns Generally.  The
provisions of this Agreement shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender (other than a Defaulting Lender) and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of Section 10.8.2
[Assignments by Lenders], (ii) by way of participation in accordance with
the provisions of Section 10.8.4 [Participations], or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of Section 10.8.6
[Certain Pledges; Successors and Assigns Generally] (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors 

 

58

 

and
assigns permitted hereby, Participants to the extent provided in Section 10.8.4
[Participations] and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

10.8.2                                     Assignments by
Lenders.  Any Lender
may at any time assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that any
such assignment shall be subject to the following conditions:

 

(i)                                     Minimum Amounts.

 

(A)                              in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)                                in any case not described in clause (i)(A) of
this Section 10.8.2, the aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment (determined as of
the date the Assignment and Assumption Agreement with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in
the Assignment and Assumption Agreement, as of the Trade Date) shall not be
less than $5,000,000 of the assigning Lender unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed).

 

(ii)                                  Proportionate
Amounts.  Each partial assignment shall
be made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the Loan or the
Commitment assigned.

 

(iii)                               Required
Consents.  No consent
shall be required for any assignment except for the consent of the
Administrative Agent (which shall not be unreasonably withheld or delayed) and
the consent of the Borrower (which shall not be unreasonably withheld or
delayed) shall be required unless an Event of Default has occurred and is
continuing at the time of such assignment;

 

(iv)                              Assignment and
Assumption Agreement.  The parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption Agreement, together with a processing and recordation
fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the
Administrative Agent an administrative questionnaire provided by the
Administrative Agent.

 

(v)                                 No Assignment
to Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

59

 

(vi)                              No Assignment
to Natural Persons.  No such
assignment shall be made to a natural person.

 

(vii)                           No Assignment
to Foreign Lenders.  No such
assignment shall be made to a Foreign Lender.

 

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to Section 10.8.3 [Register], from and after
the effective date specified in each Assignment and Assumption Agreement, the
assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption Agreement, have the
rights and obligations of a Lender under this Agreement, and, except with
respect to its obligations under Sections 10.5 [Notices; Effectiveness;
Electronic Communications], 10.6 [Severability], 10.9 [Confidentiality], 10.10
[Counterparts; Integration; Effectiveness] and 10.11 [CHOICE OF LAW; SUBMISSION
TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL],
the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption Agreement, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption
Agreement covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.4 [LIBOR Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available], 4.7
[Increased Costs], and 10.3 [Expenses, Indemnity; Damage Waiver]  with respect to facts and circumstances occurring prior to
the effective date of such assignment. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 10.8.2 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 10.8.4
[Participations].

 

10.8.3                                     Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain a record of the names
and addresses of the Lenders, including any Participants and the Commitments
of, and principal and interest amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time. 
Such register shall be conclusive, and the Borrower, the Administrative
Agent and the Lenders may treat each Person whose name is in such register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  Such register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

10.8.4                                     Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative
Agent and the Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.

 

60

 

Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any 
provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to
Sections 10.1.1 [Increase of Commitment, Etc.] or 10.1.2 [Extension of Payment,
Etc.  Subject to Section 10.8.5
[Limitations upon Participant Rights Successors and Assigns Generally], the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available] and 4.7 [Increased Costs]  to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 10.8.2 [Assignments by Lenders].  To the extent permitted by Law, each
Participant also shall be entitled to the benefits of Section 8.2.3 [Setoff]  as though it were a Lender; provided such
Participant agrees to be subject to Section 4.3 [Sharing of Payments by
Lenders]  as though it were a Lender.

 

10.8.5                                     Limitations
upon Participant Rights Successors and Assigns Generally.  A Participant shall not be entitled to
receive any greater payment under Sections 3.4 [LIBOR Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available], 4.7 [Increased Costs],
4.8 [Taxes] or 10.3 [ Expenses; Indemnity; Damage Waiver]  than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 4.8
[Taxes]  unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 4.8.5 [Status of Lenders]  as though it were a Lender.

 

10.8.6                                     Certain
Pledges; Successors and Assigns Generally.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

10.9                           Confidentiality.

 

10.9.1                                     General.  Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information, except that
Information may be disclosed (i) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and other representatives who are engaged in the administration of
this Agreement or the Loans hereunder or rendering legal advice in connection
therewith (the “Representatives”) (it being understood that the
Representatives to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential and, by accepting any Information, shall be deemed to have agreed
to be bound to the confidentiality provisions of this Section to the same
extent as if they were parties to this Agreement), (ii) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (iii) to the extent required by applicable Laws or 

 

61

 

regulations
or by any subpoena or similar legal process, (iv) to any other party hereto, (v)
in connection with the exercise of any remedies hereunder or under any other
Loan Document or any action or proceeding relating to this Agreement or any
other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject
to an agreement containing provisions substantially the same as, but no less
restrictive than, those of this Section and containing a clause expressly
providing that the Borrower is an express beneficiary of such confidentiality
provisions, to (A) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or (B) any actual or prospective counterparty (or its advisors) to
any swap or derivative transaction relating to the Borrower and its
obligations, (vii) with the written consent of the Borrower or (viii) to the
extent such Information (Y) becomes publicly available other than as a result
of a breach of this Section or other known confidentiality obligation or (Z) becomes
available to the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower;
provided that with respect to clauses (ii), (iii), (v), and (vi), the
Administrative Agent or the Lender, as the case may be, provides notification
to the Borrower within a reasonable time prior to any disclosure or, if such
prior notification is not reasonably practicable, then as soon as reasonably
practicable.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information
as such Person would accord to its own confidential information.

 

10.9.2                                     Sharing
Information With Affiliates of the Lenders.  The Borrower acknowledges that from time to
time financial advisory, investment banking and other services may be offered
or provided to the Borrower or one or more of its Affiliates (in connection
with this Agreement or otherwise) by any Lender or by one or more Subsidiaries
or Affiliates of such Lender and the Borrower hereby authorizes each Lender to
share any information delivered to such Lender by the Borrower and its
Subsidiaries pursuant to this Agreement to any such Subsidiary or Affiliate
subject to the provisions of Section 10.9.1 [General].

 

10.10                     Counterparts; Integration; Effectiveness.

 

10.10.1                               Counterparts; Integration;
Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents,
and any separate letter agreements with respect to fees payable to the
Administrative Agent, constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof
including any prior confidentiality agreements and commitments.  Except as provided in Section 6 [Conditions
Of Lending], this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or e-mail shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

62

 

10.11                     CHOICE OF LAW; SUBMISSION TO
JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

 

10.11.1                               Governing Law.  This Agreement shall be deemed to be a
contract under the Laws of the State of New York without regard to its conflict
of laws principles.

 

10.11.2                               SUBMISSION TO
JURISDICTION.  EACH PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT.  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 OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE A PARTY
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT AGAINST EACH PARTY OR ITS PROPERTIES IN THE COURTS
OF ANY JURISDICTION.

 

10.11.3                               WAIVER OF
VENUE.  EACH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 10.11.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT AND AGREES NOT ASSERT ANY SUCH DEFENSE.

 

10.11.4                               SERVICE OF
PROCESS.  EACH PARTY
HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.5 [NOTICES; EFFECTIVENESS; ELECTRONIC
COMMUNICATION].  NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

10.11.5                               WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE 

 

63

 

LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, ADMINISTRATIVE
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

10.12                     USA Patriot Act
Notice.  Each Lender that is subject to
the USA Patriot Act and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA 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
Administrative Agent, as applicable, to identify the Borrower in accordance
with the USA Patriot Act.

 

64

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

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

 

	
  ATTEST:

  	
   

  	
  THE DAYTON POWER AND LIGHT

  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Frederick J. Boyle

  
	
   

  	
   

  	
  Title: Senior Vice
  President, Chief Financial

  Officer, Treasurer and Controller

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Joseph Richardson

  
	
   

  	
  Title: Senior Vice
  President

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  THE
  NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE
PAGE TO CREDIT AGREEMENT]

 

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  COMMERCE
  BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: James B. Forse

  
	
   

  	
  Title: Regional Vice
  President

  

 

 

[SIGNATURE
PAGE TO CREDIT AGREEMENT]

 

 

	
   

  	
  FIRST
  COMMONWEALTH BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE
PAGE TO CREDIT AGREEMENT]

 

 

	
   

  	
  COMERICA
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

SCHEDULE 1.1(A)

 

PRICING GRID—

VARIABLE PRICING AND FEES
BASED ON RATINGS

(PRICING EXPRESSED IN
BASIS POINTS)

 

	
  Level

  	
   

  	
  S&P

  Rating

  	
   

  	
  Moody’s

  Rating

  	
   

  	
  Fitch

  Rating

  	
   

  	
  Facility

  Fee

  	
   

  	
  Revolving Credit

  Base Rate Spread

  	
   

  	
  Revolving Credit

  LIBOR Rate Spread

  
	
  I

  	
   

  	
  A or higher

  	
   

  	
  A2 or higher

  	
   

  	
  A or higher

  	
   

  	
  25

  	
   

  	
  75

  	
   

  	
  175

  
	
  II

  	
   

  	
  A-

  	
   

  	
  A3

  	
   

  	
  A-

  	
   

  	
  30

  	
   

  	
  100

  	
   

  	
  200

  
	
  III

  	
   

  	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  BBB+

  	
   

  	
  35

  	
   

  	
  125

  	
   

  	
  225

  
	
  IV

  	
   

  	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  BBB

  	
   

  	
  40

  	
   

  	
  150

  	
   

  	
  250

  
	
  V

  	
   

  	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  BBB-

  	
   

  	
  50

  	
   

  	
  175

  	
   

  	
  275

  
	
  VI

  	
   

  	
  Lower than BBB-

  	
   

  	
  Lower than Baa3

  	
   

  	
  Lower than BBB-

  	
   

  	
  62.5

  	
   

  	
  200

  	
   

  	
  300

  

 

If at any time each Rating
Agency issues a different rating, then the Applicable Facility Fee Rate and the
Applicable Margin shall be determined based on the intermediate rating at such
time.  If at any time two Rating Agencies
issue the same rating, which is different than the other Rating Agency, the
rating issued by such other Rating Agency shall be disregarded, and the Applicable
Facility Fee Rate and the Applicable Margin shall be determined based on the
two identical ratings at such time.  If
there is no S&P Rating and Fitch Rating, then the Applicable Facility Fee
Rate and the Applicable Margin shall be determined based on the Moody’s
Rating.  If there is no Moody’s Rating
and Fitch Rating, then the Applicable Facility Fee Rate and the Applicable
Margin shall be determined based on the S&P Rating.  If there is no Moody’s Rating and S&P
Rating, then the Applicable Facility Fee Rate and the Applicable Margin shall
be determined based on the Fitch Rating. 
If at any time only two Rating Agencies issue a rating and there is a
difference of two or more rating levels between such Rating Agencies, then the
Applicable Facility Fee Rate and the Applicable Margin shall be determined
based on the intermediate rating levels at the midpoint between the ratings
issued by such Rating Agencies at such time or, if there is no midpoint, based
on the higher intermediate level.  If (i)
there is no S&P Rating, Moody’s Rating and Fitch Rating or (ii) an Event of
Default has occurred and is continuing, the Applicable Facility Fee Rate and
the Applicable Margin shall be the highest rate per annum indicated therefor in
the above table.  The S&P Rating,
Moody’s Rating and Fitch Rating in effect on any date for purposes of
determining the Applicable Facility Fee Rate and the Applicable Margin shall be
that S&P Rating, Moody’s Rating and Fitch Rating in effect at the close of
business on such date.  Each change in
the Applicable Facility Fee Rate and the Applicable Margin resulting from a
publicly announced change in the S&P Rating, the Fitch Rating and/or the
Moody’s Rating shall be effective during the period commencing on the date 

 

1

 

of the public announcement thereof and ending on the
date immediately preceding the effective date of the next change.

 

2

 

SCHEDULE 1.1(B)

 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

Part 1 - Commitments of Lenders and Addresses for
Notices to Lenders

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  PNC Bank, National Association

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  201 E. 5th Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cincinnati, Ohio 45201

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Joseph Richardson

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (513) 651-8688

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (513) 651-8951

  	
   

  	
  $

  	
  26,000,000.00

  	
   

  	
  26.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  The Northern Trust Company

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  50 South LaSalle Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Chicago, Illinois 60603

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Jeffrey Sullivan

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (312) 444-7634

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (312) 444-7028

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  	
  17.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  U.S. Bank National Association

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  425 Walnut Street, 8th Floor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cincinnati, Ohio 45202

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Eric Cosgrove

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (513) 632-3033

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (513) 632-2068

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  	
  17.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  Commerce Bank, N.A.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  9100 Centre Pointe Dr., Suite 120

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  West Chester, Ohio 45069

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  James Forse

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (513) 881-5593

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (513) 881-5582

  	
   

  	
  $

  	
  13,000,000.00

  	
   

  	
  13.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  First Commonwealth Bank

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  437 Grant Street, Suite 1600

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Pittsburgh, Pennsylvania 15219

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Stephen J. Orban

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (412) 690-2212

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (412) 690-2206

  	
   

  	
  $

  	
  13,000,000.00

  	
   

  	
  13.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  Comerica Bank

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  500 Woodward Ave.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Detroit, Michigan 48226

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Timothy O’Rourke

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (313) 222-7044

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy: 

  	
  (313) 222-9516

  	
   

  	
  $

  	
  13,000,000.00

  	
   

  	
  13.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  	
  100.0

  	
  %

  

 

1

 

SCHEDULE 1.1(B)

 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

Part 2 -
Addresses for Notices to Borrower:

 

ADMINISTRATIVE AGENT

 

	
  Name:

  	
  PNC Bank, National
  Association

  
	
  Address:

  	
  201 E. 5th Street

  
	
   

  	
  Cincinnati, Ohio 45201

  
	
  Attention:

  	
  Joseph Richardson

  
	
  Telephone:

  	
  (513) 651-8688

  
	
  Telecopy:

  	
  (513) 651-8951

  

 

With a Copy To:

 

Agency Services, PNC Bank, National Association

Mail Stop: P7-PFSC-04-I

Address: 500 First Avenue

Pittsburgh, PA 15219

	
  Attention:

  	
  Agency
  Services

  
	
  Telephone:

  	
  412
  762 6442

  
	
  Telecopy:

  	
  412 762 8672

  

 

BORROWER:

 

	
  Name:

  	
  The
  Dayton Power and Light Company

  
	
  Address:

  	
  1065
  Woodman Drive, Dayton, Ohio 45432

  
	
  Attention:

  	
  Frederick
  J. Boyle

  
	
   

  	
  Senior
  Vice President, Chief Financial Officer, Treasurer and Controller

  
	
  Telephone:

  	
  (937)
  259-7195

  
	
  Telecopy:

  	
  (937)
  259-7386

  

 

With a mandatory copy to:

 

	
  Name:

  	
  Chuck
  Hofmann

  
	
   

  	
  Director
  of Treasury

  
	
  Address:

  	
  1065
  Woodman Drive, Dayton, Ohio 45432

  
	
  Telephone:

  	
  (937)
  259-7142

  
	
  Telecopy:

  	
  (937) 259-7147

  

 

2

 

SCHEDULE
5.1.1

 

CORPORATE
STATUS

 

As of the date of the
Agreement, the Borrower’s jurisdiction of incorporation is the State of Ohio.

 

2

 

SCHEDULE
5.1.5

 

LITIGATION

 

None.

 

3

 

SCHEDULE
6.1.1

 

OPINION
OF COUNSEL

 

See attached.

 

4

 

	
   

  	
  April
  21, 2009

  

 

PNC
Bank National Association

as
Administrative Agent under the

Credit
Agreement referred to below

 

-and-

 

Each
of the Lenders a party to

the
Credit Agreement referred

to
below

 

Ladies
and Gentlemen:

 

I
am the Senior Vice President, General Counsel and Corporate Development of The
Dayton Power and Light Company, an Ohio corporation (the “Company”).  In such capacity, I have reviewed the Credit
Agreement dated as of April 21, 2009 (the “Credit Agreement”) among the
Company, the lending institutions party thereto (the “Lenders”) and PNC Bank,
National Association, as Administrative Agent.

 

I
am rendering this opinion to you, at the request of the Company, pursuant to Section
6.1.1 (iv) of the Credit Agreement. 
Unless otherwise defined herein, terms defined in the Credit Agreement
are used herein as therein defined.

 

In
connection with this opinion, I have examined the following:

 

(i)                                     the Credit
Agreement;

 

(ii)                                  the Notes, and,
together with the Credit Agreement, the “Loan Documents”, payable to the order
of certain of the Lenders executed and delivered by the Company; and

 

(ii)                                  such corporate records of the Company,
such certificates of officers of the Company and of governmental authorities,
and such matters of law as I have considered necessary under the circumstances.

 

5

 

In rendering this opinion, I have assumed the genuineness of all
signatures (other than the signatures of the officers of the Company executing
the Loan Documents on behalf of the Company) and the authenticity of all
documents submitted to me as originals and the conformity to the original of
all documents submitted to me as certified or photostatic copies.  Moreover, I have assumed the following:

 

A.                                   each
certificate issued by any governmental authority is accurate, correct, complete
and authentic;

 

B.                                     all natural
persons are legally competent and have sufficient legal capacity;

 

C.                                     each of the
parties to the Loan Documents (other than the Company) has the requisite power
and authority to execute, deliver and perform each of the Loan Documents to
which it is a party, and each of the Loan Documents has been duly authorized,
executed and delivered by each of the parties thereto (other than the Company);

 

D.                                    any required
consent, approval or authorization of, notice or declaration to, license from,
or filing or registration with any governmental authority which any party to
the Loan Documents (other than the Company) is required to obtain, give or make
has been duly obtained, given or made, as appropriate, and any applicable
notice or appeal period has passed;

 

E.                                      except as set
forth in the Loan Documents and the other agreements, documents and instruments
executed and delivered in connection therewith, there is no agreement or understanding
(written or oral) between or among any of the parties to the Loan Documents,
and there is no usage of trade or course of prior dealing between or among such
parties, which would, in either case, define, supplement, modify or qualify the
terms of any of the Loan Documents;

 

F.                                      the conduct of
the parties to the Loan Documents has complied with any requirement of good
faith, fair dealing and conscionability; such parties will perform their
obligations thereunder reasonably, in good faith and with fair dealing; and
such parties will act reasonably, in good faith and with fair dealing in taking
action, exercising discretion or making determinations thereunder; and

 

G.                                     there has not
been any mutual mistake of fact, fraud, duress or undue influence in connection
with the execution and delivery of the Loan Documents.

 

6

 

In
addition, I have assumed the accuracy and correctness of: (i) all statements of
fact contained in certificates of officers of the Company; (ii) all statements
of fact contained in certificates of governmental authorities; and (iii) all
statements of fact and factual representations and warranties contained in the
Loan Documents.  I have not reviewed the
dockets or records of any court or other governmental authority.  Nothing contrary to the facts contained in
such certificates, statements or representations and warranties, however, has
come to my attention.  Whenever this
opinion with respect to the existence or absence of facts is stated to be based
upon my knowledge or awareness, it is intended to signify that no information
has come to my attention that would give me actual knowledge of the existence
or absence of such facts.  However, I
have not undertaken any independent investigation to determine the existence or
absence of such facts, and no inference as to my knowledge of the existence or
absence of such facts should be drawn from my participation in the transactions
contemplated by the Loan Documents.

 

My
opinion is limited solely to matters governed by the laws of the State of Ohio
and the federal laws of the United States.

 

Based
upon, and subject to, the foregoing, it is my opinion that:

 

(a)                                  The Company is
a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Ohio with the requisite corporate power and authority
to execute and deliver, and to perform its obligations under, the Loan
Documents and to conduct the business in which it is now engaged.

 

(b)                                 The execution,
delivery and performance by the Company of the Loan Documents has been duly
authorized by all necessary corporate action on its part and does not: (i) violate
or contravene the Articles of Incorporation or Regulations of the Company; (ii)
violate or contravene any applicable law, rule or regulation of the State of
Ohio or any applicable federal law, rule or regulation or any order, writ,
judgment, injunction, decree or award known to me which is binding on the
Company; or (iii) violate or contravene any material indenture, instrument or
agreement to which the Company is a party or is subject or by which the Company
or any of its properties is bound or conflict with or constitute a default
under any such indenture, instrument or agreement or result in, or require, the
creation or imposition of any Lien on any property of the Company pursuant to
any such indenture, instrument or agreement.

 

(c)                                  Each of the
Loan Documents has been duly executed and delivered by the Company.

 

(d)                                 No
authorization from, approval or consent of, notice or declaration to, license
from, or registration or filing with, any governmental authority or regulatory
body of the State of Ohio or any federal governmental authority or regulatory
body, including without limitation FERC and PUC, is required on the part of the
Company in connection with the execution and delivery by the Company of the
Loan Documents or the 

 

7

 

performance
by the Company of its obligations thereunder or the legality, validity, binding
effect or enforceability of any of the Loan Documents, other than
authorizations, consents and approvals that have been obtained and are in full
force and effect and the notices, declarations and filings that have been made.

 

(e)                                  The Company is
not a “holding company” within the meaning of the Public Utility Holding
Company Act of 2005.

 

(f)                                    I am not aware
of any action, suit or proceeding before or by any court, any other
governmental authority or any arbitration panel pending or threatened against
or affecting the Company which would have a Material Adverse Effect or which
seeks to restrain or enjoin the execution, delivery or performance of, the Loan
Documents.  For purposes of the opinion
set forth in this paragraph, we have not regarded any legal or governmental
actions, investigations or proceedings to be “threatened” unless the potential
litigant or governmental authority has communicated in writing to the Company a
present intention to initiate such actions, investigations or proceedings
against the Company.

 

(g)                                 The borrowings
by the Company under the Credit Agreement and the application of the proceeds
thereof as provided in the Credit Agreement will not violate Regulation T, U or
X of the Board of Governors of the Federal Reserve System.

 

(h)                                 The Company is
not required to register as an “investment company” (under, and as defined in,
the Investment Company Act of 1940, as amended (the “1940 Act”)) and is
not a company controlled by a company required to register as such under the
1940 Act.

 

(i)                                     The Company is
regulated as a public utility by the Federal Energy Regulatory Commission (“FERC”)
and by the Public Utilities Commission of Ohio (“PUC”).

 

(j)                                     As of the date
hereof, the Company has no Subsidiaries.

 

This
opinion is subject to the following qualifications and limitations:

 

(1)                                  No opinion is expressed with
respect to the title (or the quality or character thereof) to any property or
the existence or absence of any lien or encumbrance thereon.

 

(2)                                  No opinion is expressed with
respect to:

 

(i)                                     compliance with
any registration, filing, notification, anti-fraud or other provision of any
federal or state securities law, rule or regulation;

 

8

 

(ii)                                  matters
relating to employee benefit laws and regulations (including the Employee
Retirement Income Security Act of 1974, as amended) or federal, state or local
tax laws and regulations; or

 

(iii)                               federal or
state antitrust, unfair competition or similar laws and regulations.

 

No opinion may be inferred or implied beyond the matters expressly
stated herein.  The opinions that are
expressed herein are solely for your benefit in connection with the
transactions contemplated by the Loan Documents and may not be relied upon in
any manner for any other purpose or by any other person (other than your
permitted assigns or participants under the Loan Documents).  Without our prior written consent, this
letter is not be relied upon, used, circulated, quoted or otherwise referred to
by, or assigned to, any other person (including any person that seeks to assert
your rights in respect of this letter (other than your successor in interest by
means of merger, consolidation, transfer of a business or other similar
transaction)) or for any other purpose, except that a copy of this letter may
be delivered to your or any Lender’s regulators, accountants, attorneys and
other professional advisors.  This
opinion is as of its date, and I disclaim any undertaking or obligation to
advise you of changes that hereafter may be brought to my attention.

 

	
   

  	
  Very
  truly yours,

  

 

9

 

April 21, 2009

 

Addressee
Listed on Schedule A

 

Re:                               Revolving Credit Facility Credit
Agreement

 

Ladies and Gentlemen:

 

We have acted as special counsel to The Dayton Power
and Light Company (the “Company”) in connection with the $100,000,000
Revolving Credit Facility Credit Agreement dated as of April 21, 2009 among the
Company, the Lenders party thereto and PNC Bank, National Association, as
Administrative Agent (the “Revolving Loan Agreement” and, together with
the Notes, the “Loan Documents”). 
Capitalized terms used herein but not defined herein have the respective
meanings given them in the Revolving Loan Agreement.  We are rendering this opinion letter to you
at the request of the Company pursuant to Section 6.1.1(iv) of the Revolving
Loan Agreement.

 

In rendering the opinions set forth below, we have
examined and relied upon the originals, copies or specimens, certified or
otherwise identified to our satisfaction, of the Loan Documents and such
certificates, corporate and public records, agreements and instruments and
other documents, including, among other things, the documents delivered on the
date hereof, as we have deemed appropriate as a basis for the opinions expressed
below.  In such examination we have
assumed the genuineness of all signatures, the authenticity of all documents,
agreements and instruments submitted to us as originals, the conformity to
original documents, agreements and instruments of all documents, agreements and
instruments submitted to us as copies or specimens, the authenticity of the
originals of such documents, agreements and instruments submitted to us as
copies or specimens, and the accuracy of the matters set forth in the
documents, agreements and instruments we reviewed.  As to matters of fact relevant to the
opinions expressed herein, we have relied upon, and assumed the accuracy of,
the representations and warranties contained in the Revolving Loan Agreement
and we have relied upon certificates and oral or written statements and other
information obtained from the Company, the other parties to the transaction
referenced herein, and public officials. 
We have not undertaken any independent investigation (including, without
limitation, conducting any review, search or investigation of any public files,
records or dockets) to determine the existence or absence of facts that are
material to our opinions, and no inference as to our knowledge concerning such
facts should be drawn from our reliance on the representations of the Company
and others in connection with the preparation and delivery of this letter.

 

We have also assumed (x) the legal capacity of all
natural persons and (y) that all documents, agreements and instruments have
been duly authorized, executed and delivered by all parties thereto, that all
such parties are validly existing and in good standing under the laws of their 

 

10

 

respective jurisdictions of organization, that all
such parties had the power and legal right to execute and deliver all such
documents, agreements and instruments, and that, other than as set forth below,
such documents, agreements and instruments are legal, valid and binding
obligations of such parties, enforceable against such parties in accordance
with their respective terms.  As used
herein, “to our knowledge” or words of similar import mean the actual
knowledge, without independent investigation, of any lawyer in our firm
actively involved in the transactions contemplated by the Loan Documents.

 

With respect to certain matters regarding the
Company, we understand that you are relying on the opinion of Douglas C.
Taylor, Senior Vice President and General Counsel to the Company, and we
express no opinion regarding the matters set forth in such opinion, including,
without limitation, regulatory matters.

 

We express no opinion concerning the laws of any
jurisdiction other than the laws of the State of New York.

 

Based upon and subject to the foregoing, we are of
the opinion that:

 

Each of the Loan Documents
constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium,
receivership or other laws relating to or affecting creditors’ rights
generally, and to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity), and except that the
enforcement of rights with respect to indemnification and contribution
obligations may be limited by applicable law or considerations of public
policy.

 

Our opinions expressed above regarding the legality,
validity, binding effect and enforceability of the Loan Documents mean that,
subject to the other qualifications herein set forth, one or more remedies for
which provision is made in a Loan Document will be available in the event of a
material default by the Company, which will permit the practical realization of
the benefits intended to be provided thereby. 
However, these opinions do not mean that any particular remedy for which
provision is made in a Loan Document will be available upon a default, or that
every provision of a Loan Document will be upheld or enforced in any particular
circumstance by a court.

 

We express no opinion regarding: (a) interest on
interest provisions; (b) judgment in foreign currency provisions; (c) any
provision purporting to waive or limit rights to trial by jury; (d) any
provisions waiving rights or protective legal requirements; (e) any provisions
that may be construed as penalties or forfeitures; (f) any provision granting
or purporting to establish special or unusual remedies; (g) any waiver of
statute of limitations; (h) any provision purporting to waive or limit any
right of setoff; (i) limitations of liability; (j) indemnification or
exculpation for a party’s own wrongful or grossly negligent acts; (k) severability
clauses; (l) time is of the essences clauses; (m) any power of attorney granted
under the Revolving Loan Agreement; (n) any provision insofar as it provides
for the payment or reimbursement of costs and expenses or for claims, losses or
liabilities in excess of a reasonable amount determined by any court or other
tribunal; (o) any provision purporting to waive or limit oral amendments of
written agreements; or (p) provisions relating to jurisdiction, venue or
service of process.

 

11

 

We are furnishing this letter to you solely for your
benefit in connection with the transactions referred to herein; provided,
that this letter may be relied upon by any Lender party to the Loan Documents
as of the date of this letter.  Without
our prior written consent, this letter is not to be relied upon, used,
circulated, quoted or otherwise referred to by, or assigned to, any other
person (including any person that seeks to assert your rights in respect of
this letter (other than your successor in interest by means of merger,
consolidation, transfer of a business or other similar transaction)) or for any
other purpose, except that (a) a copy of this letter may be delivered by the
Administrative Agent to those Persons who are assignees, participants,
potential assignees or potential participants of any Lender and (b) a copy of
this letter may be delivered to your or any Lender’s regulators, accountants,
attorneys and other professional advisors; provided, that any Person who
becomes a party to the Loan Documents as a Lender may rely on this opinion as
though it had been addressed to such Person and delivered to such Person on the
date hereof.  In addition, we disclaim
any obligation to update this letter for changes in fact or law, or otherwise.

 

Very truly yours,

 

12

 

Schedule A

 

PNC
Bank, National Association

as
Administrative Agent for the Lenders party to the Revolving Loan Agreement

201
E. 5th Street

Cincinnati,
Ohio 45201

 

13

 

SCHEDULE
7.2.2

 

PERMITTED
LIENS

 

None.

 

14

 

SCHEDULE
7.2.5

 

PERMITTED
INVESTMENTS

 

1.  Payroll, travel and similar advances to cover
matters expected at the time of such advances ultimately to be treated as
expenses for accounting purposes and that are made in the ordinary course of
business.  Various loans and advances to
employees for office equipment, tuition and/or moving expenses made in the
ordinary course of business.

 

2.  Certificated common shares representing
ownership in Ohio Valley Electric Corporation (OVEC), which as of the date of
the Agreement constituted 4.9% ownership of OVEC.  In addition, the
Borrower is a guarantor of a pro rata portion of OVEC’s total long-term debt
outstanding, which as of the date of the Agreement amounted to approximately
$50.6 million of OVEC’s approximate $1,034 million total long-term debt
outstanding.

 

15

 

EXHIBIT
1.1(A)

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT
(this “Assignment and Assumption”) is dated as of the Effective Date set
forth below and is entered into by and between [Insert name
of Assignor] (the “Assignor”) and [Insert name
of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as the same may be amended, restated, modified, or supplemented, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

 

For an agreed consideration, the Assignor
hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as
a Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below, and (ii) to
the extent permitted to be assigned under applicable law, all claims, suits,
causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to
herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

 

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [and is an Affiliate of
  [identify Lender]]

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
   

  	
  The Dayton Power and
  Light Company

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agent:

  	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION, as the administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
   

  	
  The Credit Agreement
  dated as of April 21, 2009, among The Dayton Power and Light Company,
  the

  

 

16

 

	
   

  	
   

  	
   

  	
  Lenders party thereto
  and PNC Bank, National Association, as Administrative Agent.

  

 

6.      Assigned Interest:

 

	
  Facility Assigned

  	
   

  	
  Aggregate Amount

  of Commitment /

  Loans for all

  Lenders

  	
   

  	
  Amount of

  Commitment /

  Loans

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment /

  Loans(1)

  	
   

  	
  CUSIP

  Number

  	
   

  
	
  Revolving
  Credit Commitment

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  	
   

  

 

11.                           [Trade Date:                          ](2)

 

(1) Set forth, to at
least 9 decimals, as a percentage of the Commitment/Loans of all Lenders
thereunder.

(2) To be completed
if the Assignor and the Assignee intend that the minimum assignment amount is
to be determined as of the Trade Date.

 

17

 

[SIGNATURE PAGE - ASSIGNMENT AND ASSUMPTION AGREEMENT]

 

Effective Date:  
                                ,
200       [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.](3)

 

The terms set forth in this Assignment and
Assumption are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Consented to and
  Accepted:

  	
   

  
	
   

  	
   

  
	
  PNC BANK, NATIONAL ASSOCIATION,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

(3) Assignor shall pay
a fee of $3,500 to the Administrative Agent in connection with the Assignment
and Assumption.

 

18

 

[SIGNATURE PAGE - ASSIGNMENT AND ASSUMPTION AGREEMENT]

 

Consented to:(4)

 

THE
DAYTON POWER AND LIGHT COMPANY, an Ohio corporation

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

(4) If applicable.

 

19

 

ANNEX 1

 

THE DAYTON POWER AND LIGHT
COMPANY

$100,000,000 REVOLVING CREDIT FACILITY

 

STANDARD
TERMS AND CONDITIONS

FOR
ASSIGNMENT AND ASSUMPTION

 

1.             Representations and Warranties.

 

1.1           Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim, and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents, (iii) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Loan Document, or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Loan Document.

 

1.2.          Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it meets all requirements of an assignee under
the Credit Agreement (subject to receipt of such consents as may be required
under the Credit Agreement), (iii) from and after the Effective Date, it
shall be bound by the provisions of the Credit Agreement as a Lender thereunder
and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder and (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements delivered pursuant
to Section 7.3 [Reporting Requirements] 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 Assignment and Assumption and
to purchase the Assigned Interest 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 (b) agrees that (i) it will,
independently and without reliance on the Administrative 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 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.

 

2.             Payments.  From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding 

 

 

Effective Date and to the Assignee for amounts which have accrued from
and after the Effective Date.

 

3.             General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be
governed by, and construed in accordance with, the internal laws of the State
of New York without regard to its conflict of laws principles.

 

2

 

EXHIBIT 1.1(N)

 

FORM OF

REVOLVING CREDIT NOTE

 

	
  US$

  	
   

  	
  Pittsburgh,
  Pennsylvania

  
	
   

  	
   

  	
  April       , 2009

  

 

FOR VALUE
RECEIVED, the undersigned, THE DAYTON POWER
AND LIGHT COMPANY., an Ohio corporation (herein called the “Borrower”),
hereby promises to pay to the order of                                                                    
(the “Lender”), the lesser of (i) the principal sum of
                                                                                                          
UNITED STATES DOLLARS
(US$                        ),
or (ii) the aggregate unpaid principal balance of all Revolving Credit
Loans made by the Lender to the Borrower pursuant to the Credit Agreement,
dated as of even date herewith, among the Borrower, the Lenders now or
hereafter party thereto and PNC Bank, National Association, as administrative
agent (hereinafter referred to in such capacity as the “Administrative Agent”)
(as amended, restated, modified, or supplemented from time to time, the “Credit
Agreement”), payable by 11:00 a.m. eastern time on the Expiration
Date, together with interest on the unpaid principal balance hereof from time
to time outstanding from the date hereof at the rate or rates per annum
specified by the Borrower pursuant to, or as otherwise provided in, the Credit
Agreement.

 

Interest on the
unpaid principal balance hereof from time to time outstanding from the date
hereof will be payable at the times provided for in the Credit Agreement.  Upon the occurrence and during the
continuation of an Event of Default, the Borrower shall pay interest on the
entire principal amount of the then outstanding Revolving Credit Loans
evidenced by this Revolving Credit Note and all other obligations due and
payable to the Lender pursuant to the Credit Agreement and the other Loan
Documents at a rate per annum as set forth in Section 3.3 [Interest After
Default] of the Credit Agreement.  Such
interest rate will accrue before and after any judgment has been entered.

 

Subject to the
provisions of the Credit Agreement, payments of both principal and interest
shall be made without setoff, counterclaim, or other deduction of any nature at
the office of the Administrative Agent located at 500 First Avenue, Pittsburgh,
Pennsylvania 15219 unless otherwise directed in writing by the Administrative
Agent, in lawful money of the United States of America in immediately available
funds.

 

This Note is one
of the Notes evidencing Revolving Credit Loans referred to in, and is entitled
to the benefits of, the Credit Agreement and the other Loan Documents,
including the representations, warranties, covenants and conditions contained
or granted therein.  The Credit Agreement
among other things contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events and also for prepayment, in certain
circumstances, on account of principal hereof prior to maturity upon the terms
and conditions therein specified.  The
Borrower waives presentment, demand, notice, protest and all other demands and
notices in 

 

3

 

connection with the delivery, acceptance, performance, default or
enforcement of this Note and, as provided therein, the Credit Agreement.

 

This Note shall
bind the Borrower and its successors and assigns, and the benefits hereof shall
inure to the benefit of the Lender and its successors and assigns.  All references herein to the “Borrower”,
the “Administrative Agent” and the “Lender” shall be deemed to
apply to the Borrower, the Administrative Agent and the Lender, respectively,
and their respective successors and assigns as permitted under the Credit
Agreement.  Except as permitted by Section 10.8.2
of the Credit Agreement, this Note may not be assigned by the Lender to any
Person.

 

This Note and any
other documents delivered in connection herewith and the rights and obligations
of the parties hereto and thereto shall for all purposes be governed, by and
construed and enforced in accordance with, the internal laws of the State of New
York without giving effect to its conflicts of law principles.

 

All capitalized
terms used herein shall, unless otherwise defined herein, have the same
meanings given to such terms in the Credit Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

4

 

[SIGNATURE
PAGE TO REVOLVING CREDIT NOTE]

 

IN WITNESS
WHEREOF, and intending to be legally bound hereby, the undersigned has executed
this Note by its duly authorized officer with the intention that it constitute
a sealed instrument.

 

	
   

  	
   

  	
  THE DAYTON POWER AND LIGHT
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT
2.4

 

FORM OF

LOAN REQUEST

 

TO:                          PNC Bank, National Association, as
Administrative Agent

PNC Firstside
Center

500 First Avenue, 4th Floor

Pittsburgh, PA  15219

Telephone No.:  (412) 762-7638

Telecopier No.:  (412) 762-8672

Attn:  Rini Davis

 

FROM:                   THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation (the “Borrower”)

 

RE:                          Credit Agreement (as it may be amended,
restated, modified or supplemented, the “Credit Agreement”), dated April 21,
2009, by and among The Dayton Power and Light Company, an Ohio corporation, the
Lenders party thereto and PNC Bank, National Association, as administrative
agent for the Lenders (the “Administrative Agent”).

 

Capitalized terms not otherwise defined herein shall
have the respective meanings ascribed to them by the Credit Agreement.

 

A.            Pursuant to Section 2.4 [Revolving Credit Loan
Requests] of the Credit Agreement, the undersigned Borrower irrevocably
requests [check one line under 1.(a) below and
fill in blank space next to the line as appropriate]:

1.(a)        o      A new Revolving Credit Loan, OR

o      Renewal of the LIBOR Rate Option
applicable to an outstanding Revolving Credit Loan  originally
made on
                    
, 20    , OR

o      Conversion of the Base Rate Option
applicable to an outstanding
                              
Revolving Credit Loan  originally
made on
                  ,
20     to a Loan to which the LIBOR Rate Option applies, OR

o      Conversion of the LIBOR Rate Option
applicable to an outstanding Revolving Credit Loan originally made on
                    
    , 20     to a Loan to which the
Base Rate Option applies.

 

SUCH NEW, RENEWED OR
CONVERTED LOAN SHALL BEAR INTEREST:

 

[Check one line under 1.(b) below
and fill in blank spaces in line next to line]:

 

2

 

1.(b)(i) o             Under
the Base Rate Option.  Such Loan shall
have a Borrowing Date of
                    ,
20       (which date shall be the same Business
Day as the Business Day of receipt by the Administrative Agent by 11:00 a.m.
eastern time of this Loan Request for making a new Revolving Credit Loan to
which the Base Rate Option applies, or (ii) the last day of the preceding
Interest Period if a Loan to which the LIBOR Rate Option applies is being
converted to a Loan to which the Base Rate Option applies).

 

OR

 

(ii) o           Under
the LIBOR Rate Option.  Such Loan shall
have a Borrowing Date of
                          ,
20     (which date shall be (i) three (3) Business
Days subsequent to the Business Day of receipt by the Administrative Agent by
11:00 a.m. eastern time of this Loan Request for making a new Revolving
Credit Loan to which the LIBOR Rate Option applies, renewing a Loan to which
the LIBOR Rate Option applies, or converting a Loan to which the Base Rate
Option applies to a Loan to which the LIBOR Rate Option applies, in any case
where such Loan is to be advanced in U.S. Dollars.

 

2.             Such Loan is in the principal amount of U.S.
$                          
or the principal amount to be renewed or converted is U.S. $

[for
Revolving Credit Loans under Section 2.4 not to be less than $1,000,000 or
the maximum amount available and in increments of $500,000 for each Borrowing
Tranche under the LIBOR Rate Option and not less than the lesser of $500,000 or
the maximum amount available for Borrowing Tranches under the Base Rate Option
and in increments of $100,000].

 

3.             [Complete blank below if the Borrower is selecting
the LIBOR Rate Option for a Loan advanced in U.S. Dollars]:

Such Loan shall
have an Interest Period of [one, two, three, or six] Month(s):

 

B.            As of the date hereof and the date of making the
above-requested Loan (and after giving effect thereto): the Borrower has
performed and complied with all covenants and conditions of such Persons under
the Credit Agreement and the other Loan Documents; all of the representations
and warranties contained in Section 5 of the Credit Agreement and in the
other Loan Documents are true and correct in all material respects (unless any
such representation or warranty is qualified to materiality, in which case such
representation or warranty is true and correct in all respects), except for
representations and warranties made as of a specified date (which were true and
correct in all material respects, as applicable, as of such date); no Event of
Default or Potential Default has occurred and is continuing or exists; the
making of such Loan shall not contravene any Law applicable to the Borrower or
any Subsidiary of the Borrower, or any Lender; and the Revolving Facility Usage
does not exceed the Revolving Credit Commitments.

 

3

 

C.            The undersigned hereby
irrevocably requests [check one line below and
fill in blank spaces next to the line as appropriate]:

 

1. o    Funds to be
deposited into a PNC Bank bank account per our current standing instructions.  Complete amount of deposit if not full loan
advance amount: U.S.
$                              .

 

2. o    Funds to be
wired per the following wire instructions:

U.S.
$                                    Amount of Wire Transfer

	
   

  	
  Bank Name:

  	
   

  	
   

  
	
   

  	
  ABA:

  	
   

  	
   

  
	
   

  	
  Account Number:

  	
   

  	
   

  
	
   

  	
  Account Name:

  	
   

  	
   

  
	
   

  	
  Reference:

  	
   

  	
   

  
								

 

3. o    Funds to be
wired per the attached Funds Flow (multiple wire transfers).

 

[SIGNATURE PAGE FOLLOWS]

 

4

 

[SIGNATURE PAGE 1 OF 1 TO
LOAN REQUEST]

 

The undersigned
certifies to the Administrative Agent as to the accuracy of the foregoing.

 

 

	
   

  	
  THE DAYTON POWER AND LIGHT
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT 6.1.1

 

FORM OF

 

THE DAYTON
POWER AND LIGHT COMPANY

SOLVENCY CERTIFICATE

 

April       , 2009

 

This
certificate is made pursuant to Section 6.1.1(viii) of,
and in connection with the consummation of the transactions contemplated in,
the Credit Agreement, dated as of April 21, 2009 (as amended,
supplemented, extended or otherwise modified from time to time, the “Credit Agreement”), among The Dayton Power and Light Company
(the “Company”), an Ohio corporation, the
Lenders party thereto and PNC Bank, National Association, as administrative
agent for such Lenders. Capitalized terms defined in the Credit Agreement and
used herein but not otherwise defined are used herein as so defined.

The
undersigned in his capacity as the Senior Vice President, Chief Financial
Officer, Treasurer and Controller of the Company and not in his individual
capacity hereby certifies as of the date hereof that:

1.             The undersigned
is the Senior Vice President, Chief Financial Officer, Treasurer and Controller
of the Company and, in such capacity, is authorized to execute and deliver this
certificate on behalf of the Company.

 

2.             The undersigned
has reviewed the Credit Agreement and, on the date hereof, both before and
after giving effect to the Loans, if any, made on the date hereof and the
application of the proceeds thereof in accordance with the Credit Agreement, the Company is
Solvent.  For purposes of this paragraph,
“Solvent” shall mean that, as of the date hereof, the value of the assets of
the Company is greater than the total amount of liabilities of the Company, the
Company is able to pay its liabilities as such liabilities mature and the
Company does not have unreasonably small capital.

 

This
certification is rendered only in the capacity of the undersigned as an officer
of the Company and not individually and absent fraud or willful misconduct on
the part of such officer the undersigned shall have no personal liability to
the Administrative Agent or the Lenders.

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Solvency Certificate on the
date first written above.

 

 

	
   

  	
   

  
	
   

  	
  Name:  Frederick J. Boyle

  
	
   

  	
  Title: Senior Vice President,
  Chief Financial Officer, Treasurer and Controller

  

 

 

EXHIBIT
7.3.3

 

QUARTERLY
COMPLIANCE CERTIFICATE

 

This certificate
is delivered pursuant to Section 7.3.3 of that certain Credit Agreement
dated as of April 21, 2009 (as the
same may from time to time be amended, restated, supplemented or otherwise
modified, the “Credit Agreement”) by and among The Dayton Power and
Light Company, an Ohio corporation (the “Borrower”), the Lenders party thereto
(the “Lenders”) and PNC Bank, National Association, as Administrative
Agent for the Lenders
(the “Administrative Agent”).  Unless
otherwise defined herein, terms defined in the Credit Agreement are used herein
with the same meanings.

 

The undersigned
officer,
                                            ,
the
                      
[President/Chief Executive Officer/Chief
Financial Officer] of the Borrower, in such
capacity (and not individually) does hereby certify on behalf of the Borrower
as of the [quarter/year] ended
                                  ,
20       (the “Report Date”), as follows:

 

(1)           Financial Covenant (Section 7.2.11).  As of the Report Date, the ratio of
Consolidated Total Debt to Consolidated Total Capitalization is
                                  
(insert ratio from (1)(C) below), which is not greater than 0.65 to 1.0.

 

	
  (A)          The
  Consolidated Total Debt of the Borrower and its Subsidiaries shall be
  computed as follows:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (i)            indebtedness
  for borrowed money of the Borrower and its Subsidiaries

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (ii)           all
  bonds, notes, debentures and similar debt securities of the Borrower and its
  Subsidiaries

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (iii)          the
  deferred purchase price of capital assets or services of the Borrower and its
  Subsidiaries that in accordance with GAAP would be shown on the liability
  side of the balance sheet

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (iv)          non-contingent
  obligations of the Borrower and its Subsidiaries to reimburse any other
  Person in respect of amounts paid under a letter of credit or similar
  instrument to the extent that such reimbursement obligations remain
  outstanding after such obligations become non-contingent

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (v)           all
  obligations of the Borrower and its Subsidiaries, contingent or otherwise in
  respect of bankers’ acceptances

  	
   

  	
  $

  	
   

  	
   

  

 

2

 

	
  (vi)          all
  Indebtedness of a second Person secured by any Lien on any Property owned by
  of the Borrower or its Subsidiaries, whether or not such Indebtedness has
  been assumed

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (vii)         all
  Capitalized Lease Obligations of the Borrower and its Subsidiaries

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (viii)        the
  present value, determined on the basis of the implicit interest rate, of all
  basic rental obligations of the Borrower and its Subsidiaries under all
  Synthetic Leases

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (ix)           the
  full outstanding balance of trade receivables, notes or other instruments of
  the Borrower and its Subsidiaries sold with full recourse (and the portion
  thereof subject to potential recourse, if sold with limited recourse), other
  than in any such case any thereof sold solely for purposes of collection of
  delinquent accounts

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (x)            the
  stated value, or liquidation value if higher, of all Redeemable Stock of the
  Borrower and its Subsidiaries

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (xi)           all
  Guaranty Obligations of the Borrower and its Subsidiaries

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (xii)          the
  sum of items (1)(A)(i) through (1)(A)(xi) equals Consolidated Total
  Debt(5)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (B)           The
  Consolidated Total Capitalization of the Borrower and its Subsidiaries shall
  be computed as follows:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (i)            Consolidated
  New Worth of the Borrower

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (ii)           Consolidated
  Total Debt of the Borrower and its Subsidiaries (insert amount from item
  1(A)(xii)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (iii)          the
  sum of items 1(B)(i) and 1(B)(ii) equals  Consolidated Total Capitalization

  	
   

  	
  $

  	
   

  	
   

  

 

(5) 
Provided, however, that (i) neither trade payables nor other similar
accrued expenses, in each case arising in the ordinary course of business, nor
obligations in respect of insurance policies or performance or surety bonds
that themselves are not guarantees of Indebtedness (nor drafts, acceptances or
similar instruments evidencing the same nor obligations in respect of letters
of credit supporting the payment of the same), shall constitute Indebtedness;
and (ii) the Indebtedness of any Person shall in any event include
(without duplication) the Indebtedness of any other entity (including any
general partnership in which such Person is a general partner) to the extent
such Person is liable thereon as a result of such Person’s ownership interest
in or other relationship with such entity, except to the extent the terms of
such Indebtedness provide expressly that such Person is not liable thereon.

 

3

 

	
  (C)

  	
   

  	
  The ratio of
  Item (1)(A)(xii) to Item (1)(B)(iii) equals the ratio of Consolidated
  Total Debt to Consolidated Total Capitalization

  	
   

  	
  1.0

  

 

(2)           I am familiar with the terms of the Credit Agreement
and the terms of the other Loan Documents, and I have made, or have caused to
be made under my supervision, a review in reasonable detail of the transactions
and condition of the Borrower and its Subsidiaries during the accounting period
covered by the attached financial statements;

 

(3)           The review described in paragraph (2) above did
not disclose, and I have no knowledge of, the existence of any condition or
event that constitutes or constituted a Potential Default or Event of Default,
at the end of the accounting period covered by the attached financial
statements or as of the date of this Certificate; and

 

(4)           The Borrower hereby represents that the
representations and warranties made by the Borrower contained in the Credit
Agreement (other than the representation and warranty contained in Section 5.1.8
of the Credit Agreement) and each other Loan Document are true and correct in
all material respects as though made on and as of the date hereof, except to
the extent that such representations and warranties expressly relate to an
earlier specified date, in which case such representations and warranties were
true and correct in all material respects as of the date when made.

 

[SIGNATURE PAGE FOLLOWS]

 

4

 

SIGNATURE PAGE 1
OF 1 TO

QUARTERLY COMPLIANCE CERTIFICATE

 

IN WITNESS
WHEREOF, the undersigned has executed this Certificate this
           day of
                        ,
20      .

 

	
   

  	
  THE DAYTON POWER AND LIGHT
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:Exhibit 10.1

 

VIA
E-MAIL

Abraham
Rosler, individually

Abraham
Rosler, as trustee

Abraham
Rosler Family Trust dated July 30, 1999

 

Re:          Agreement and General Release of Claims

 

Dear Mr. Rosler:

 

This agreement (“Agreement”) confirms our
understanding and agreement with you individually and as trustee of the Abraham
Rosler Family Trust dated July 30, 1999 (the “Trust”),
with regard to the termination of your employment with InfoSonics Corporation
and its subsidiaries and affiliates (collectively, “Company”
or “Releasee”) effective October 6, 2009,
(“the Separation Date”), the
forfeiture of your options and options held by the Trust, and the resignation
of your officer and director positions. The following provisions set forth the
terms of the Agreement in exchange for a release of claims, as outlined below.

 

1.             Separation Date.  By your signatures below, you acknowledge
that your employment with the Company has terminated on the Separation Date and
that you resign all of your positions with the Company as of such date,
including, without limitation, your position as Executive Vice President, and
as a member of the Company’s Board of Directors.  Notwithstanding any revocation of this
Agreement pursuant to Paragraph 14, your resignation from the Board of
Directors shall be irrevocable as of the Separation Date.

 

2.             Acknowledgment
of Payment of Wages.  By your
signature below, you acknowledge receipt of payment of all amounts due from the
Company for all salary, wages, bonuses, and commissions earned through the Separation
Date and all amounts due from the Company for unused vacation time and other
paid time accrued by you through the close of business on the Separation Date,
less all applicable taxes and withholdings. Coverage under your existing health
benefits plan will continue through the end of October 2009, and you will
thereafter receive any benefits to which you may be entitled under COBRA. If
applicable, information on COBRA coverage will be provided under separate
cover. By signing below, you further acknowledge that you have received all
reimbursement due you for your outstanding approved reimbursable expenses, or
have submitted expenses for reimbursement, if any.  By signing below, you acknowledge that the
Company does not owe you any other amounts, payments or other benefits.  You are entitled to receive the payments and
benefits as described in this paragraph without regard to whether you execute
this Agreement.

 

3.             Separation
Benefits and Agreements.

 

a.             In addition to
the above-described benefits and in exchange for you executing this Agreement
and upon its effectiveness in accordance with Paragraph 14, the Company agrees
to provide you with a lump sum of seventy-five thousand dollars ($75,000), less
all applicable taxes and withholdings payable via direct deposit to yours Wells
Fargo Bank account.

 

 

b.             Additionally, you
and, as applicable, the Trust (i) represent and warrant that you own all right,
title and interest in and to an aggregate of 463,500 vested and unvested options
to purchase Company common stock currently held by you and the Trust (collectively,
the “Options”); (ii) have not exercised,
attempted to exercise or made any agreement, whether verbal or written, to
exercise any of the Options (iii) have not transferred, hypothecated, hedged,
imposed or permitted the imposition of any lien, encumbered or otherwise
impaired any of the Options or the underlying common stock; or entered into an
agreement to do so, and (iv) hereby covenant and agree to surrender and forfeit
all of the Options to the Company as of the date of payment under Paragraph 3(a)
upon the expiration of the revocation period set forth in Paragraph 14, and you
and the Trust shall hereafter not exercise, transfer, hypothecate, lien,
encumber or otherwise impair any of such Options or the shares of Company
common stock underlying such Options or enter into any agreement to do so.

 

4.             Return of Company Property.  You hereby represent and warrant to the
Company that you have returned to the Company, or will return no later than
seven (7) days from the date of your execution of this Agreement, all real or
intangible property or data of the Company of any type whatsoever that has been
in your possession or control, including, without limitation, the Company’s
CISCO VOIP phone.

 

5.             Waiver and Release of all Claims.  The payments and promises set forth in this
Agreement are in full satisfaction of all accrued salary, vacation pay, bonus
pay, profit-sharing, stock options, termination benefits or other compensation
to which you may be entitled by virtue of your employment and directorship with
the Company, including your separation from the Company. You hereby release and
waive all claims you may have against the Company in any capacity (including as
an employee, director, officer, stockholder and optionholder) and its present
and former owners, agents, officers, shareholders, employees, directors,
attorneys, subscribers, subsidiaries, parent, affiliates, successors and
assigns (collectively “Releasees”),
whether known or not known, including, without limitation, claims under any securities
and employment laws, including but not limited to, claims of unlawful
discharge, breach of contract, breach of the covenant of good faith and fair
dealing, fraud, violation of public policy, defamation, physical injury,
emotional distress, claims for additional compensation or benefits arising out
of your employment or your separation of employment, claims under any laws
and/or regulations relating to employment or employment discrimination,
including, without limitation, claims under Title VII of the Civil Rights Act
of 1964, as amended, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act of 1967, the Americans with Disabilities Act of 1990, the Fair
Labor Standards Act, the Employee Retirement Income Security Act of 1974, The
Worker Adjustment and Retraining Notification Act, the Older Workers Benefit
Protection Act, the California Fair Employment and Housing Act, California
Labor Code section 201, et seq. and
section 970, et seq., the Family and Medical
Leave Act, the Sarbanes-Oxley Act, privacy

 

 

laws,
and all other state and federal civil rights, discrimination, equal opportunity
and fair employment practices, laws or statutes, any and all claims for
violation of the federal, state, constitution, or any municipal statute.
However, this release does not waive your rights to any vested benefits under
any Company plans, including a 401K plan or any claim which as a matter of law
or public policy cannot be waived.  In
addition, this release does not waive your rights to coverage under any and all
applicable Company insurance policies for actions or omissions by you while
employed by the Company as an officer and/or while serving as a director.  This release also does not waive any of your
rights pursuant to California Labor Code sections 2802 and 2804, which as a
matter of law or public policy cannot be waived.  By signing below, you expressly waive any
benefits of Section 1542 of the Civil Code of the State of California, (and any
other federal, state, or local law of similar effect), which provides as
follows:

 

“A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

6.             Nondisparagement.  Each party agrees not to disparage the other
or Releasees’ products, services, agents, representatives, directors, officers,
shareholders, attorneys, employees, vendors, affiliates, successors or assigns,
or any person acting by, through, under or in concert with any of them, with
any written or oral statement, provided however, that nothing in this paragraph
shall prevent Releasees from (i) responding or otherwise providing information in
good faith in connection with any investigation, subpoena, request, lawsuit,
action or other proceeding by any government or self regulatory organization
(including, but not limited to FINRA), or (ii) making any statement reasonably
necessary to defend itself in any investigation, inquiry, lawsuit, action or
other legal, regulatory, administrative or investigative proceeding.

 

7.             Legal and
Equitable Remedies.  You agree
that Releasees have the right to enforce this Agreement and any of its
provisions by injunction, specific performance or other equitable relief
without prejudice to any other rights or remedies Releasees may have at law or
in equity for breach of this Agreement.

 

8.             Attorneys’ Fees.  If any action is brought to enforce the terms
of this Agreement, the prevailing party will be entitled to recover its
reasonable attorneys’ fees, costs and expenses from the other party, in
addition to any other relief to which the prevailing party may be entitled.

 

9.             Disclosure.  This Agreement may be disclosed by the
Company in its public filings with the Securities and Exchange Commission.

 

10.           No Admission of
Liability.  This
Agreement is not and shall not be construed or contended by you to be an
admission or evidence of any wrongdoing or liability on the part of Releasees,
their representatives, heirs, executors, attorneys, agents, partners, officers,
shareholders, directors, employees, subsidiaries, affiliates, divisions,
successors or assigns.

 

 

11.           Entire
Agreement.  Except for
provisions of that certain Employment Agreement dated April 8, 2008 between you
and the Company which provisions expressly survive termination, including
Sections 6 and 7 thereof, such Employment Agreement is hereby terminated.  This Agreement constitutes the entire
agreement between you and Releasees with respect to the subject matter hereof
and supersedes all prior negotiations and agreements, whether written or oral,
relating to such subject matter. You acknowledge that neither Releasees nor
their agents or attorneys have made any promise, representation or warranty
whatsoever, either express or implied, written or oral, which is not contained
in this Agreement for the purpose of inducing you to execute the Agreement, and
you acknowledge that you have executed this Agreement in reliance only upon
such promises, representations and warranties as are contained herein.  This Agreement may be executed via facsimile
or via emailed PDF-format document, and a facsimile or emailed copy of either
party’s signature shall be deemed and be enforceable as an original
thereof.  This Agreement may be executed
in counterparts, both of which taken together shall constitute one single
Agreement between the parties.

 

12.           Modification.  It is expressly agreed that this Agreement
may not be altered, amended, modified, or otherwise changed in any respect
except by another written agreement that specifically refers to this Agreement,
executed by authorized representatives of each of the parties to this
Agreement.

 

13.           Savings Clause.  Should any of the provisions of this
Agreement be determined to be invalid by a court or governmental agency of
competent jurisdiction, it is agreed that such determination shall not affect
the enforceability of the other provisions herein.

 

14.           Review of
Agreement.  You acknowledge
that: before signing this Agreement, you were given a period of twenty-one (21)
days from the Separation Date in which to review and consider it; you have, in
fact, carefully reviewed this Agreement; and that you are entering into it
voluntarily and of your own free will. 
Further, you acknowledge that the Company encouraged you in writing to
show and discuss this Agreement with your own attorney. You understand that you
may take up to twenty-one (21) days from the Separation Date to consider this
Agreement and, by signing below, affirm that you are represented by legal
counsel prior to and in connection with signing this Agreement.  You also understand you may revoke this
Agreement within seven (7) days of signing this document by doing so in writing
addressed to Joseph Ram, President, InfoSonics Corporation at 4350 Executive
Drive, Suite 100, San Diego, CA 92121, and that the additional benefits
pursuant to Paragraph 3 will be provided only at the end of that seven (7) day
revocation period provided you have not revoked this Agreement.

 

 

15.           Arbitration.  You and the Company together (“Parties”),
agree that any and all disputes arising out of the terms of this Agreement,
their interpretation, and any of the matters herein released or herein described,
including, but not limited to, any potential claims of harassment,
discrimination or wrongful termination shall be subject to binding arbitration,
to the extent permitted by law, in the County of San Diego before the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes.  The Parties agree
to and hereby waive their right to jury trial as to matters arising out of the
terms of this Agreement and any matters herein released to the extent permitted
by law.  The Parties agree that the
prevailing party in any arbitration shall be entitled to its attorneys’ fees
and costs to the extent permissible by law.

 

16.           Binding Agreement.  This Agreement is binding upon, and shall
inure to the benefit of, the parties and their respective heirs, executors,
administrators, successors and assigns.

 

17.           Governing Law.  This Agreement shall be construed,
interpreted, enforced and governed under the laws of California, without regard
to its principles of conflict of laws. 
The courts of the State of California shall have exclusive jurisdiction
over any action, claim or proceeding arising out of or relating to this
Agreement or the subject matter hereof. 
The parties hereto specifically consent to the in  personam
jurisdiction and venue of the courts of the State of California in any action
or proceeding to enforce the terms of this Agreement.

 

18.           Further Assurances.  You agree that in connection with any inquiry,
investigation, or litigation involving the Company and a third party to which
you may possess information or testimony that may be relevant to the matter,
you will, at the Company’s reasonable request and cost and expense, assist the
Company in such matter(s).

 

If this Agreement is acceptable to you, please
indicate your agreement by signing and dating the enclosed copy and returning
it within the 21-day period referenced in Paragraph 14, above, to: Joseph Ram,
President, InfoSonics Corporation 4350 Executive Drive, Suite 100, San Diego, CA
92121, with a copy via fax to Company counsel at 310.843.1254.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  InfoSonics
  Corporation

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/
  Jeffrey Klausner

  
	
   

  	
  Jeffrey Klausner, Chief
  Financial Officer

  

 

 

READ THIS AGREEMENT AND
CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT; IT HAS IMPORTANT
LEGAL CONSEQUENCES AND INCLUDES A RELEASE AND WAIVER OF KNOWN AND UNKNOWN
CLAIMS.  CONSULT YOUR ATTORNEY BEFORE
SIGNING IT.

 

 

I acknowledge that I have
read this Agreement and that I understand and voluntarily accept its terms.

 

 

THIS IS A LEGALLY ENFORCEABLE DOCUMENT.

 

 

	
  /s/
  Abraham Rosler

  	
   

  	
  Date:
  October 6, 2009

  
	
  Abraham
  Rosler

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Abraham Rosler

  	
   

  	
   

  
	
  Abraham
  Rosler, Trustee of the Abraham Rosler

  	
   

  	
   

  
	
  Family
  Trust dated July 30, 1999

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