Document:

Ex10-155

FLEET (Logo)
National Utilities Department

Fleet Bank

Mail Stop: MA OF D071

One Federal Street

Boston, MA 02110

617-346-0364

Fax 617-346-0580

 

February 14 2000

Mr. James P. Bolduc

Chief Financial Officer

CONNECTICUT NATURAL GAS 

100 Columbus Boulevard

Hartford, CT 06144

Dear Jim:

I am pleased to inform you that Fleet National Bank (Fleet) has approved a
Line of Credit for $15,000,000.00 to Connecticut Natural Gas under the following
terms and conditions:

Borrower:Connecticut Natural Gas 

Maximum

Amount:$15,000,000.00 (Fifteen million U.S. Dollars).

Availability: From March 1, 2000 through September 30, 2000,
availability will be $10,000,000.00 (Ten million U.S. Dollars)
and from October 1, 2000 through maturity, availability will be
increased to $15,000,000.00 (Fifteen million U.S.
Dollars).

Facility:Line of Credit

Purpose:Short term and seasonal working capital

Maturity:February 9, 2001

Interest:Prime rate as posted by Fleet from time to time or at
a money market rate to be agreed upon at the time of each
borrowing.

Fee:The facility will be compensated by a fee equal to
1/5 of 1% per annum on the total available
commitment payable quarterly in arrears; and a processing fee of
$1,500.00 payable at closing.

Availability:The availability of this facility is predicated upon
normal banking conditions, and the absence of events that would
materially and adversely affect Connecticut Natural Gas.

Financial1) Annual audited statements and Form 10K within 90 days of
year Statement end.

Requirements:2) Quarterly review/direct financial statements and Form
10Q  within 60 days of quarter end.

The terms and conditions contained herein supersede all prior dealing
regarding this transaction, if any. If the above terms and conditions meet with
your approval, kindly indicate your acceptance by signing in the appropriate
space below and returning this letter along with the enclosed Promissory Note to
me by February 19, 2000.

Sincerely,

S/ Suresh Chivukula

Fleet National Bank 

 

 

 

 

 

 

Witness:   S/
Andrew H. Johnson        
      Accepted By:

             
             
              
             
        Connecticut Natural Gas

             
             
             
              
        _____________2-15-00___
 ____
           
              
              
              
             
           Date

             
             
             
              
        _____S/_James P. 
Bolduc_________

             
             
              
             
          Name of 
Authorized Signatory

 

PROMISSORY NOTE

$15,000,000.00February 14, 2000

FOR VALUE RECEIVED, Connecticut Natural Gas Corporation (the
"Borrower") hereby promises to pay to the order of Fleet National Bank (the
"Bank") at One Federal Street, Boston, Massachusetts 02211 or at such other
address as the holder hereof may designate, the principal sum of FIFTEEN
MILLION DOLLARS ($15,000,000), or, if less, the aggregate unpaid
principal amount of all advances made by the Bank to the Borrower under the
terms hereinafter set forth, in lawful money of the United States and to pay
interest on each advance as set forth below and to pay all taxes levied or
assessed upon said principal sum against any holder of this Note and all costs,
including attorneys' fees and costs relating to the appraisal and/or valuation
of assets, incurred in the collection, defense, preservation, administration,
enforcement or protection of this Note.

This note has been executed and delivered subject to the following terms
and conditions:

(1) ADVANCES. The Bank agrees, upon the terms and conditions hereof, to
make advances from time to time to the Borrower on any business day during the
period from the date hereof and including February 9, 2001 (the
"Termination Date") in an aggregate principal amount at any one time outstanding
not to exceed FIFTEEN MILLION DOLLARS ($15,000,000). From March 1,
2000 through September 30, 2000, availability will be TEN MILLION
($10,000,000) and from October 1, 2000 through maturity availability will
be increased to FIFTEEN MILLION DOLLARS ($15,000,000).
Subject to the terms and conditions of this Note, the Borrower may borrow,
repay, and, to the extent permitted hereunder, prepay advances and reborrow at
any time and from time to time prior to the Termination Date. If any advance is
made, the Bank may, at its option, record on the books and records of the Bank
or endorse on Schedule 1 hereto, an appropriate notation evidencing any advance,
the interest rate applicable to such advance, the maturity date of such advance,
each repayment on account of the principal thereof, and the amount of interest
paid; and the Borrower authorizes the Bank to maintain such records or make such
notations and agrees that the amount shown on the books and records or on said
Schedule 1, as applicable, as outstanding from time to time shall constitute the
amount owing to the Bank pursuant to this Note, absent manifest error. In the
event the amount shown on Schedule 1 conflicts with the amount noted as due
pursuant to the books and records of the Bank, the books and records of the Bank
shall control the disposition of the conflict.

(2) REPAYMENT OF ADVANCES. The Borrower shall repay the aggregate unpaid
principal amount of all advances made by the Bank and outstanding hereunder as
follows: (a) in the case of a Base Rate Advance (defined below), on the
Termination Date and (b) in the case of a Fixed Rate Advance (defined below), on
the earlier of the maturity date as set forth on Schedule 1 hereto or the
Termination Date. The Bank is hereby authorized (but not required) to charge
principal and interest on this Note and all other amounts due hereunder to any
account of the Borrower when and as it becomes due.

(3) INTEREST RATE; ADDITIONAL CHARGES; FEE. (a) The Bank shall notify the
Borrower of the interest rate applicable to each advance. If an advance bears
interest at a variable per annum rate equal to the Base Rate ("Base Rate
Advance"), interest on such advance shall be payable when and as billed (but not
less than quarterly) and upon payment of such Base Rate Advance (whether on the
Termination Date, upon acceleration or otherwise). If an advance bears interest
at a per annum Fixed Rate ("Fixed Rate Advance"), interest on such advance will
be payable when and as billed (but not less than quarterly) and upon payment of
such Fixed Rate Advance (whether on the maturity date for such advance set forth
on Schedule 1, on the Termination Date, upon acceleration or otherwise). The
Bank is hereby authorized (but not required) to charge any of Borrower's
accounts at the Bank for interest payments on the due date therefor. On default
or after the maturity date of any advance (by acceleration or otherwise as
herein provided) and including the period after any judgment has been rendered
with respect thereto, the unpaid principal balance of such advance shall bear
interest at a rate which is two (2) percentage points per annum greater than the
Base Rate. As used herein, the term "Base Rate" shall mean the interest rate
announced by the Bank from time to time as its Base Rate. Changes in the rate of
interest resulting from changes in the Base Rate shall take place immediately
without notice or demand of any kind. Interest shall be calculated on the basis
of a 360-day year and actual days elapsed.

 

(b) If the Bank shall deem applicable to this Note, (including, in each
case, the borrowed and the unused portion thereof) any requirement of any law of
the United States of America, any regulation, order, interpretation, ruling,
official directive or guideline (whether or not having the force of law) of the
Board of Governors of the Federal Reserve System, the Comptroller of the
Currency, the Federal Deposit Insurance Corporation or any other board or
governmental or administrative agency of the United States of America which
shall impose, increase, modify or make applicable to this Note or cause this
Note to be included in, any reserve, special deposit, calculation used in the
computation of regulatory capital standards, assessment or other requirement
which imposes on the Bank any cost that is attributable to the maintenance
thereof, then, and in each such event, the Borrower shall promptly pay the Bank,
upon its demand, such amount as will compensate the Bank for any such cost which
determination may be based upon the Bank's reasonable allocation of the
aggregate of such costs resulting from such events. In the event any such cost
is a continuing cost, a fee payable to the Bank may be imposed upon the Borrower
periodically for so long as any such cost is deemed applicable to the Bank, in
an amount determined by the Bank to be necessary to compensate the Bank for any
such cost, which determination may be based upon the Bank's reasonable
allocation of the aggregate of such costs resulting from such events. The
determination by the Bank of the existence and amount of any such additional
costs shall, in the absence of manifest error, be conclusive.

(c) If, at any time, the rate of interest, together with all amounts
which constitute interest and which are reserved, charged or taken by Bank as
compensation for fees, services or expenses incidental to the making,
negotiating or collection of any advance evidenced hereby, shall be deemed by
any competent court of law, governmental agency or tribunal to exceed the
maximum rate of interest permitted to be charged by the Bank to the Borrower
under the laws of any applicable jurisdiction or the rules or regulations of any
appropriate regulatory authority or agency, then during such time as such rate
of interest would be deemed excessive, that portion of each sum paid
attributable to that portion of such interest rate that exceeds the maximum rate
of interest so permitted shall be deemed a voluntary prepayment of
principal.

(4) CONDITIONS TO LENDING. Each advance hereunder shall be subject to the
following conditions precedent: (a) no Event of Default (defined below), or no
event which, with the giving of notice or lapse of time or both, would
constitute an Event of Default, shall have occurred and be continuing; (b) any
and all representations and warranties made by the Borrower hereunder or under
any document, instrument, agreement or certificate executed in connection
herewith shall be true and correct as of the date of each advance, with any
request for any advance to be deemed a certification as to such truth and
correctness; and (c) there shall have been no material adverse change in the
assets, liabilities, financial condition or business of the Borrower since the
date of any financial statements delivered to the Bank before or after the date
hereof.

(5) LATE CHARGE. The Borrower hereby agrees to pay a "late charge" not to
exceed five (5) percent of any installment of principal, interest or other
amount due to the Bank which is not paid within fifteen (15) days of the due
date thereof to cover the extra expense involved in handling such delinquent
payment. The minimum late charge shall be $15.00.

(6) PREPAYMENTS; CHARGES. The Borrower may not prepay any Fixed Rate
Advance prior to the maturity date noted on Schedule 1 with respect to such
Fixed Rate Advance. The Borrower may prepay any Base Rate Advance at any time in
whole or in part without penalty or premium. If, at any time, the principal
amount of the advances outstanding hereunder exceeds $15,000,000, the
Borrower shall immediately prepay so much of the outstanding principal balance
hereof, together with accrued interest thereon, as shall be necessary in order
that the sum of the amounts, after giving effect to such prepayment, shall not
be in excess of $15,000,000. In the event that a prepayment of a Fixed
Rate Advance is permitted or required hereunder and such prepayment results in
any loss (including any lost profit), cost or expense to the Bank, the Bank
shall notify the Borrower of the amount thereof and the Borrower shall
immediately pay such amount to the Bank. All such prepayments shall be applied
first to the payment of all fees, costs, charges, additional charges and losses
incurred by or owed to the Bank hereunder, then to interest accrued to the date
of prepayment and the remainder to the principal balance.

 

 

(7) FINANCIAL STATEMENTS; NOTICE OF DEFAULT. The Borrower shall deliver
to the Bank (a) within sixty (60) days after close of each of the first three
quarters of each fiscal year of the Borrower, a balance sheet of the Borrower as
of the close of each quarter and statements of income and retained earnings for
that portion of the fiscal year-to-date then ended, prepared in conformity with
generally accepted accounting principles, applied on a basis consistent with
that of the preceding period or containing disclosure of the effect on financial
position or results of operations of any change in the application of generally
accepted accounting principles during the period, and certified by the president
or the chief financial officer of the Borrower as accurate, true and correct;
(b) within ninety (90) days after the close of each fiscal year of the Borrower,
financial statements including, a balance sheet as of the close of such fiscal
year and statements of income and retained earnings and cash flows for the year
then ended, prepared in conformity with generally accepted accounting
principles, applied on a basis consistent with that of the preceding year or
containing disclosure of the effect on financial position or results of
operations of any change in the application of accounting principles during the
year and accompanied by a report thereon, containing an opinion, unqualified as
to scope, of a firm of independent certified public accountants selected by the
Borrower and acceptable to the Bank; (c) from time to time, promptly upon the
Bank's written request, such other information about the financial condition and
operations of the Borrower as the Bank may, from time to time, reasonably
request; (d) promptly on becoming aware of any Event of Default (as herein
defined) the Borrower shall notify the Bank in writing and shall specify the
steps, if any, taken or to be taken to remedy such occurrence.

(8) LIEN AND SET-OFF. The Borrower hereby gives the Bank a lien and right
of set off for all of Borrower's liabilities and obligations upon and against
all the deposits, credits, collateral and property of the Borrower, now or
hereafter in the possession, custody, safekeeping or control of the Bank or any
entity under the control of Fleet Financial Group or in transit to any of them.
At any time, without demand or notice, the Bank may set off the same or any part
thereof and apply the same to any liability or obligation of the Borrower even
though unmatured.

(9) EVENTS OF DEFAULT. Each of the following shall constitute an "Event
of Default" hereunder: failure of Borrower to pay or perform any of its
liabilities or obligations to Bank (whether under this Note or otherwise and
whether now existing or hereafter arising) when due to be paid or performed;
default by the Borrower in the payment of any other indebtedness or obligation,
or if any such other indebtedness or obligation shall be accelerated, or if
there exists any event of default under any note, instrument, document or
agreement evidencing, governing or securing such other indebtedness or
obligation; any material adverse change in the assets, liabilities, financial
condition or business of Borrower; failure by Borrower to comply with the terms
of, or the occurrence of default under, this Note or any mortgage, guaranty,
loan or security agreement or other agreement or document which may now or
hereafter govern, evidence or secure this Note; any material loss, theft,
substantial damage or destruction of or to any collateral which may now or
hereafter secure this Note; sale or other disposition of or encumbrance on or
the making of any levy, seizure or attachment of any collateral which may now or
hereafter secure this Note or any other property of the Borrower; or
incompetency of, dissolution of, termination of the existence of, insolvency of,
business failure of, application for or appointment of a receiver, trustee,
conservator or liquidator of any part of the property of, assignment for the
benefit of creditors by, or the commencement of any proceeding (whether for the
purpose of liquidation or rehabilitation or otherwise) under any bankruptcy or
insolvency laws of, by or against Borrower.

(10) ACCELERATION. Upon the occurrence of any Event of Default hereunder
or if Bank shall in good faith believe that the prospect of payment or
performance is impaired, all advances outstanding hereunder, together with
accrued interest thereon, shall become immediately due and payable, at the
option of the Bank, without notice or demand, each of which is expressly waived
by the Borrower, and any obligation of the Bank to lend to the Borrower
hereunder shall automatically terminate.

 

 

 

 

 

 

(11) PREJUDGMENT REMEDY WAIVER. TO THE EXTEND PERMITTED BY ANY STATE OR
FEDERAL LAW, BORROWER AND EACH GUARANTOR HEREBY WAIVE THE RIGHT ANY OF THEM MAY
HAVE TO PRIOR NOTICE OF AND A HEARING ON THE RIGHT OF ANY HOLDER OF THIS NOTE TO
A PREJUDGMENT REMEDY, WHICH REMEDY ENABLES SAID HOLDER BY WAY OF ATTACHMENT,
FOREIGN ATTACHMENT, GARNISHMENT OR REPLEVIN TO DEPRIVE BORROWER OR ANY GUARANTOR
OF, OR AFFECT THE USE, POSSESSION OR ENJOYMENT BY BORROWER OR ANY GUARANTOR OF,
ANY OF THEIR PROPERTY AT ANY TIME PRIOR TO JUDGMENT IN ANY LITIGATION INSTITUTED
IN CONNECTION WITH THIS NOTE.

(12) WAIVER OF TRIAL BY JURY. THE BANK, BORROWER IRREVOCABLY WAIVE ALL
RIGHTS TO A TRIAL BY JURY IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST
BORROWER IN RESPECT OF THIS NOTE OR ARISING OUT OF ANY OTHER DOCUMENT,
INSTRUMENT OR AGREEMENT EVIDENCING, GOVERNING OR SECURING THIS NOTE.

(13) WAIVERS, BINDING EFFECT, ETC.
(a)This Note shall be the obligation of Borrower and each
provision of this Note shall apply to each and all jointly and severally and to
the property and liabilities.

(b)Borrower waives presentment, demand, notice, protest, notice
of acceptance of this Note, notice of loans made, credit extended, or other
action taken in reliance hereon. With respect to its liabilities, Borrower
assents to any extension or postponement of the time of payment or any other
indulgence, to the addition or release of any party or person primarily or
secondarily liable, to the acceptance of partial payments thereon and the
settlement, compromising or adjusting of any thereof, all in such manner and at
such time or times as the Bank may deem advisable.

(c)The Bank shall not be deemed to have waived any of its rights
unless such waiver be in writing and signed by the Bank. This Note contains the
final, complete and exclusive statement of the terms governing this transaction.
No delay or omission on the part of the Bank in exercising any right shall
operate as a waiver of such right or any other right. A waiver on any one
occasion shall not be construed as a bar to or waiver of any right on any future
occasion. All rights and remedies of the Bank hereunder or under any applicable
statute shall be cumulative and may be exercised singularly or concurrently.

(d)The provisions of this Note shall bind the successors and
assigns of the Borrower and shall inure to the benefit of the Bank, its
successors and assigns.

(e)This Note shall be governed and construed under the laws of
the State of Massachusetts.

(f)If any provision of this Note shall to any extent be held
invalid or unenforceable, the remainder of this Note shall not be affected
thereby.

(14) ACKNOWLEDGMENT OF BORROWER. Borrower acknowledges receipt of a copy
of this Note, and attests that each advance is to be used for general commercial
purposes and that no part of such proceeds will be used, in whole or in part,
for the purpose of purchasing or carrying any "margin stock" as such term is
defined in Regulation U of the Board of Governors of the Federal Reserve
System.

 

 

 

 

 

 

(15) GOVERNMENT APPROVALS. The Borrower hereby represents and warrants
that it has obtained all approvals, consents and authorizations, if any,
required to be obtained from federal, state or local governmental authorities or
regulatory bodies in connection with the execution, delivery and performance of
this Note and the borrowings hereunder.

IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed
as a sealed instrument.

WITNESS:            
             
             
              
           CONNECTICUT
 NATURAL GAS CORPORATION

    S/ Andrew H. Johnson   
             
             
           By: 
  S/ James P. Bolduc      
             
              
             
   

             
             
              
             
             
              
         Name:  James
 P. Bolduc

             
             
             
              
             
             
          Its:  
Executive Vice President and Chief Financial Officer

 

 

 

 

 

SCHEDULE 1

 

 

 

   Interest RateAmount of
PrincipalAmount of

 Amount of(Indicate Rate, if  
Maturity DatePrincipal Balance Interest

Advance MadeFixed or Base Rate,(Fixed 
Rate, Give PrepaidRemainingPaid This  
Notation

Date  This Date   
   If Variable)      
  Date Due)   This Date
  Unpaid     Date  
   Made  By

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advances and payments of principal and interest pursuant to
a

Promissory Note between Connecticut Natural Gas Corporation
and

Fleet National Bank.Ex10-156

IRREVOCABLE DIRECT PAY LETTER OF CREDIT NO. CS1128277

DATE OF ISSUE: January 14, 1999

 

	
ISSUING BANK:

Fleet National Bank

a Member of Fleet Financial

Group

c/o Fleet Pennsylvania Services

One Fleet Way

Scranton, PA 18507
	
APPLICANT:

The Energy Network, Inc.

100 Columbus Boulevard

Hartford, Connecticut 06144

	
 
	
BENEFICIARY:

State Street Bank and Trust Company,

as Trustee under Indenture of

Trust Agreement dated as of

January 1, 2000

Goodwin Square

225 Asylum Street, 23rd Floor

Hartford, Connecticut 06103

	
 
	
Amount/Currency:

Up to USD $4,364,500.00

Up to Four Million Three Hundred Sixty-Four Thousand Five Hundred and
00/100ths US Dollars

	
 
	
Date and Place of Expiry:

January 16, 2001 at the

Issuing Bank

Dear Sirs:

At the request and for the account of our customer, The Energy Network,
Inc., 100 Columbus Boulevard, Hartford, Connecticut 06144 (the "Borrower"), we
hereby establish in your favor, as Trustee under the below-defined Indenture
pursuant to which $4,300,000 in aggregate principal amount of Connecticut
Development Authority Industrial Revenue Variable Rate Demand Bonds (The Energy
Network/SINA Project-2000 Series) (the "Bonds") are being issued by the
Connecticut Development Authority (the "Issuer"), this Irrevocable Direct Pay
Letter of Credit No. CS1128277 in the amount of $4,364,500 (the "Stated
Amount"), of which (1) $4,300,000 (as from time to time reduced or reinstated as
provided in this Letter of Credit, the "Principal Component") shall support the
payment of the principal or portion of the purchase price corresponding to
principal of the Bonds, and (2) $64,500 (as from time to time reduced or
reinstated as provided in this Letter of Credit, the "Interest Component") shall
support the payment of up to 45 days' interest on the Bonds or portion of the
purchase price corresponding to interest at an assumed rate of 12% per annum,
effective immediately and expiring at 5:00 P.M. (Scranton time) on the below-
defined Stated Termination Date or earlier as hereinafter provided. Any payment
pursuant to a drawing under this Letter of Credit will be made by us with our
own funds, and not from any separate funds of the Issuer or the Borrower. As
used herein, the term "Indenture" will be deemed to mean that certain Indenture
of Trust dated as of January 1, 2000 among the Issuer and State Street Bank and
Trust Company, as trustee (the "Trustee"). As used herein, the term "Stated
Termination Date" means January 16, 2001.

We hereby irrevocably authorize you to draw on us, in an aggregate amount not
to exceed the amount of this Letter of Credit set forth above and in accordance
with the terms and conditions and subject to the reductions in amount as
hereinafter set forth, (1) in one drawing per month (subject to the provisions
contained in the next following paragraph) by your draft (in the form of Annex A
attached hereto), payable at sight on a Business Day, and accompanied by your
written and completed certificate signed by you in the form of Annex B attached
hereto (such draft accompanied by such certificate being your "Interest
Drawing"), an amount not exceeding the Interest Component, computed at an
assumed rate of 12% per annum; (2) in one or more drawings by one or more of
your drafts (in the form of Annex A attached hereto), payable at sight on a
Business Day, and accompanied by your written and completed certificate signed
by you in the form of Annex C attached hereto (any such draft accompanied by
such certificate being your "Tender Drawing"), an aggregate amount not exceeding
the sum of the Principal Component and the Interest Component; (3) in one or
more drawings by one or more of your drafts (in the form of Annex A attached
hereto), payable at sight on a Business Day, and accompanied by your written and
completed certificate signed by you in the form of Annex D attached hereto (any
such draft accompanied by such certificate being your "Partial Redemption
Drawing"), an aggregate amount not exceeding the sum of the Principal Component
and the Interest Component; and (4) in a single drawing by your draft (in the
form of Annex A attached hereto), payable at sight on a Business Day, and
accompanied by your written and completed certificate signed by you in the form
of Annex E attached hereto (such draft accompanied by such certificate being
your "Final Drawing", and any Interest Drawing, Tender Drawing, Partial
Redemption Drawing or Final Drawing referred to herein being a "Drawing"), an
amount not exceeding the sum of the Principal Component and the Interest
Component. Each such Drawing shall cover principal of and/or accrued and unpaid
interest on the Bonds. "Business Day" means any day (i) that is not a Saturday,
Sunday or legal holiday, (ii) that is a day on which banks are not required or
authorized to close in Hartford, Connecticut, New York, New York, or Scranton,
Pennsylvania (iii) that is a day on which banking institutions in each of the
cities in which the principal corporate trust office of the Trustee, the
principal office of the Remarketing Agent (as defined in the Indenture) and our
principal office are located are not required or authorized to remain closed and
(iv) that is a day on which the New York Stock Exchange is not closed.

If you shall draw on us by your Interest Drawing under clause (1) of the
first sentence of the immediately preceding paragraph and you shall not have
received from us within ten (10) calendar days from the date of such drawing a
written notice to the effect that a default exists under our reimbursement
agreement with the Borrower and that the Interest Component of the Letter of
Credit will not be reinstated, your right to draw on us in a single drawing by
your Interest Drawing under said clause (1) shall be automatically reinstated
and, effective the eleventh (11th) calendar day from the date of such drawing,
you shall again be authorized to draw on us by your Interest Drawing in
accordance with said clause (1); provided, however, that the Interest Component
of this Letter of Credit shall be decreased as hereinafter provided in
connection with amounts drawn pursuant to Partial Redemption Drawings and any
Tender Drawing. The automatic reinstatement of your right to draw on us by your
Interest Drawing shall be applicable to successive drawings by your Interest
Drawings under clause (1) of the first sentence of the immediately preceding
paragraph so long as this Letter of Credit shall not have terminated as set
forth below.

Upon our honoring any Tender Drawing or Partial Redemption Drawing presented
by you hereunder, (i) the Principal Component of this Letter of Credit and the
amounts available to be drawn hereunder by you with respect to principal of the
Bonds by any subsequent Drawing shall be automatically decreased by an amount
equal to the Principal Component of such Tender Drawing or Partial Redemption
Drawing, and (ii) the Interest Component of this Letter of Credit and the
amounts available to be drawn hereunder by you with respect to accrued and
unpaid interest on the Bonds by any subsequent Drawing shall be automatically
decreased by an amount equal to the portion of the Interest Component relating
to Bonds purchased or redeemed with the proceeds of such Tender Drawing or
Partial Redemption Drawing, but shall automatically reinstate as
follows:
(A) with respect to any decrease upon payment of any Tender Drawing, the
amount of the Principal Component of this Letter of Credit and the portion of
the Interest Component relating thereto shall be increased when and to the
extent, but only when and to the extent, that we are reimbursed by or on behalf
of the Borrower for any amount drawn hereunder by any Tender Drawing. Any amount
received by us from or on behalf of the Borrower in reimbursement of amounts
drawn hereunder by any Tender Drawing shall, if accompanied by your completed
certificate signed by you in the form of Annex F attached hereto, be applied to
the extent of the amount indicated therein to reimburse us for amounts drawn
hereunder by your Tender Drawings; and

(B) with respect to any decrease upon payment of any Partial Redemption
Drawing or Final Drawing, the amount of the Principal Component relating thereto
shall not be reinstated.

Funds from us under this Letter of Credit are available to you against
presentation of your Interest Drawing, your Tender Drawing, your Partial
Redemption Drawing and your Final Drawing. Each sight draft drawn under this
Letter of Credit must bear on its face the clause "Drawn under Fleet National
Bank Irrevocable Direct Pay Letter of Credit No. CS1128277." Each Drawing shall
be presented to us at the following address: Fleet National Bank, c/o Fleet
Pennsylvania Services, Trade Services Operations, One Fleet Way, Scranton, PA
18507, attention: Standby Letter of Credit Unit, Mail Code PASCS02M. A Drawing
shall be deemed to have been presented on the date actually received by us.
Presentation will also be deemed made upon our receipt of your telecopier
transmission to us (at Fax No. [(570) 330-4187)] of a facsimile of the
appropriate sight draft and drawing certificate properly completed and signed,
together with your undertaking to send to us by regular U.S. Mail, for receipt
on the next following Business Day, the signed originals of such documents.
Presentation may not be made in any manner other than as provided in this
paragraph. If we receive any of your Drawings (other than a Tender Drawing) at
our aforesaid office, all in strict conformity with the terms and conditions of
this Letter of Credit, not later than 12:00 noon (New York City time) on a
Business Day (provided that this Letter of Credit has not then terminated), we
will cause payment of same by 1:00 P.M. (New York City time) on the next
following Business Day in accordance with your payment instructions. If we
receive any of your Drawings (other than a Tender Drawing) at such office, all
in strict conformity with the terms and conditions of this Letter of Credit,
after 12:00 A.M. (New York City time) on a Business Day (provided that this
Letter of Credit has not then terminated), we will cause payment of same by
12:00 noon (New York City time) on the second succeeding Business Day in
accordance with your payment instructions. If we receive any Tender Drawing at
our aforesaid office, all in strict conformity with the terms and conditions of
this Letter of Credit, not later than 10:00 A.M. (New York City time) on any
Business Day (provided that this Letter of Credit has not then terminated), we
will cause payment of same by 2:00 P.M. (New York City time) on the same
Business Day in accordance with your payment instructions. If we receive any
Tender Drawing at such office, all in strict conformity with the terms and
conditions of this Letter of Credit, after 10:00 A.M. (New York City time) on
any Business Day (provided that this Letter of Credit has not then terminated),
we will cause payment of same by 12:00 noon (New York City time) on the next
following Business Day in accordance with your payment instructions. If
requested by you, payment under this Letter of Credit may be made by wire
transfer of Federal Reserve Bank of Boston funds to your account in a bank on
the Federal Reserve wire system or by deposit of same day funds into a
designated account that you maintain with us. As used in this Letter of Credit
"cause payment" shall mean (i) the deposit of same day funds into a designated
account with us, if such deposit is requested; or (ii) if wire transfer is
requested, the entry of an appropriate wire transfer in the Federal Reserve wire
system and the obtaining of a Federal Reserve reference number.

Upon the earliest of (i) our honoring your Final Drawing presented hereunder
accompanied by this Letter of Credit, (ii) 5:00 p.m. (New York City time) on the
date on which we receive a certificate signed by you accompanied by this Letter
of Credit stating that the Borrower has provided and you have accepted a
substitute or replacement "Credit Facility" (as defined in the Indenture) in
accordance with the terms of the Indenture that is effective the date of such
certificate, or (iii) the Stated Termination Date, this Letter of Credit shall
terminate.

This Letter of Credit is transferable in its entirety (but not in part) to
any transferee whom you certify to us has succeeded you as Trustee under the
Indenture, and may be successively transferred. Transfer of the available
balance under this Letter of Credit to such transferee shall be effected by the
presentation to us of this Letter of Credit accompanied by a certificate in the
form of Annex G attached hereto. Upon such presentation, we shall forthwith
transfer the same to your transferee. A transfer fee is payable in the amount of
1/4 of 1% of the face amount hereof.

This Letter of Credit sets forth in full our undertaking, and such
undertaking shall not in any way be modified, amended, amplified or limited by
reference to any document, instrument or agreement referred to herein
(including, without limitation, the Bonds), except only the Drawings referred to
herein, which are hereby incorporated by reference; and any such reference shall
not be deemed to incorporate herein by reference any document, instrument or
agreement except for such Drawings.

Only you (or a transferee permitted by the terms of this Letter of Credit)
may make drawings under this Letter of Credit. Upon the payment to you or to
your account of the amount specified in a sight draft drawn hereunder, we shall
be fully discharged on our obligation under this Letter of Credit with respect
to such draft, and we shall not thereafter be obligated to make any further
payments under this Letter of Credit in respect of such draft to you or to any
other person who may have made to you or who makes to you a demand for payment
of principal of, or interest on, any Bond.

To the extent consistent with the express provisions hereof, this Letter of
Credit shall be governed by the laws of The Commonwealth of Massachusetts,
except to the extent such laws are inconsistent with the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, in which event such Uniform Customs shall govern
except as modified hereby (including, without limitation, the provisions on
transferability).

Communications with respect to this Letter of Credit shall be in writing and
shall be addressed to us at Fleet National Bank, c/o Fleet Pennsylvania
Services, Trade Services Operations, One Fleet Way, Scranton, PA 18507,
attention: Standby Letter of Credit Unit, Mail Code PASCS02M, and shall
specifically refer to the number of this Letter of Credit.

Very truly yours,

FLEET NATIONAL BANK

 

By:____________________________________
Authorized Signature

 

 

Annex A

[Form of Sight Draft]

DRAWN UNDER FLEET NATIONAL BANK

IRREVOCABLE DIRECT PAY

LETTER OF CREDIT NO. CS1128277

Date:____________

AMOUNT: _______________________

Pay at sight

Pay to the order of ________________________, as trustee

(U.S. $_________________)

Charge to account of Fleet National Bank

Irrevocable Direct Pay Letter of Credit No. CS1128277 dated January 14,
2000

TO:Fleet National Bank

c/o Fleet Pennsylvania Services

Trade Services Operations

One Fleet Way

Scranton, PA 18507

Attention: Standby Letter of Credit Unit

___________________, as Trustee

By:_________________________

 Authorized Officer

The signature below constitutes an endorsement of this sight draft.

___________________, as Trustee

By:_________________________

 Authorized Officer

Annex B

[Form of Certificate for Interest Drawing]

"CERTIFICATE FOR DRAWING IN CONNECTION WITH THE PAYMENT

OF UP TO 45 DAYS' INTEREST

Irrevocable Direct Pay Letter of Credit No.
CS1128277

The undersigned, a duly authorized officer of the undersigned Trustee (the
'Trustee'), hereby certifies to Fleet National Bank (the 'Bank'), with reference
to Irrevocable Direct Pay Letter of Credit No. CS1128277 (the 'Letter of
Credit', the terms defined therein and not otherwise defined herein being used
herein as therein defined) issued by the Bank in favor of the Trustee, as
follows:

(1)The Trustee is the Trustee under the Indenture.
(2) The Trustee is making a drawing under the Letter of Credit with
respect to a payment of interest on Bonds on an interest payment date, which
payment is due and payable. As of the record date for such interest payment,
none of such Bonds to which this drawing relates were the Borrower Bonds or
Pledged Bonds, as those terms are defined in the Indenture.

(3) [The Interest Drawing of which this Certificate is a part is the
first Interest Drawing presented by the Trustee under the Letter of Credit, and
covers interest on the Bonds accruing on and after [ ], 2000.]* [The
Interest Drawing last presented by the Trustee under the Letter of Credit was
honored and paid by the Bank on ______, 200_, and the Trustee has not received a
notice within ten days of presentation of such Interest Drawing from the Bank
that a default exists under the reimbursement agreement between the Borrower and
the Bank.]** 

(4) The amount of the Interest Drawing of which this Certificate is a
part is $_____________. It was computed in compliance with the terms and
conditions of the Bonds and the Indenture and does not exceed the amount
available to be drawn by the Trustee as the Interest Component under the Letter
of Credit.

(5) Upon receipt by the undersigned of the amount demanded hereby, (a)
the undersigned will apply the same directly to the payment when due of the
interest amount owing on account of the Bonds on an interest payment date, (b)
no portion of said amount shall be applied by the undersigned for any other
purpose, and (c) no portion of said amount shall be commingled with other funds
held by the undersigned.

IN WITNESS WHEREOF, the Trustee has executed and delivered this
Certificate as of the ___ day of _______________, ____.

[ ], as Trustee

 

By:________________________________"

Name:

Title:

Annex C

[Form of Certificate for Tender Drawing]

"CERTIFICATE FOR DRAWING IN CONNECTION WITH THE PAYMENT OF

THE PURCHASE PRICE OF BONDS TENDERED AT THE OPTION OF

THE HOLDERS THEREOF OR PURSUANT TO MANDATORY TENDER

Irrevocable Direct Pay Letter of Credit No.
CS1128277

 

The undersigned, a duly authorized officer of the undersigned Trustee
(the 'Trustee'), hereby certifies to Fleet National Bank (the 'Bank'), with
reference to Irrevocable Direct Pay Letter of Credit No. CS1128277 (the 'Letter
of Credit', the terms defined therein and not otherwise defined herein being
used herein as therein defined) issued by the Bank in favor of the Trustee, as
follows:

(1)The Trustee is the Trustee under the Indenture.

(2)The Trustee is making a drawing under the Letter of Credit with
respect to a payment, upon a tender of all or less than all of the Bonds that
are Outstanding (as defined in the Indenture), of the unpaid principal amount
of, and up to 45 days' accrued and unpaid interest on, the Bonds to be purchased
as a result of [optional tender pursuant to the terms of Section 2.3(G)(1)c) of
the Indenture] [mandatory tender pursuant to the terms of Section 2.3(G)(1)(d)
of the Indenture]* (other than Borrower Bonds or Pledged Bonds, as
those terms are defined in the Indenture), which payment is due on the date on
which this Certificate and the Tender Drawing of which it is a part are being
presented to the Bank.

(3)The amount of the Tender Drawing of which this Certificate is a
part is equal to the sum of (i) $____________ being drawn in respect of the
payment of unpaid principal of Bonds (other than Borrower Bonds or Pledged
Bonds, as those terms are defined in the Indenture) to be purchased as a result
of a tender, plus (ii) $___________ being drawn in respect of the payment of
accrued and unpaid interest on such Bonds.

(4)The Trustee shall register or cause to be registered in the name of
the Bank, or its designee, as pledgee of the Borrower, and shall deliver or
cause to be delivered (unless in book-entry form only) to the Bank or its
designee a principal amount of Bonds equal to the principal amount of the Tender
Drawing of which this Certificate is a part as promptly as practicable, and in
any event within three (3) Business Days after presentation of said Tender
Drawing.

(5)Upon receipt by the undersigned of the amount demanded hereby, (a) the
undersigned will apply the same directly to the payment when due of the purchase
price of, and accrued and unpaid interest on, Bonds tendered pursuant to the
Indenture, (b) no portion of said amount shall be applied by the undersigned for
any other purpose, and (c) no portion of said amount shall be commingled with
other funds held by the undersigned.

(6)The amount of the Tender Drawing of which this Certificate is a part
was computed in compliance with the terms and conditions of the Bonds and the
Indenture and does not exceed the amount available to be drawn by the Trustee
under the Letter of Credit; the amount being drawn hereby in respect of interest
does not exceed the Interest Component and the amount being drawn hereby in
respect of principal does not exceed the Principal Component.

The Trustee acknowledges that, pursuant to the terms of the Letter of Credit,
upon the Bank's honoring of the Tender Drawing of which this Certificate is a
part, the amount of the Letter of Credit and the amounts available to be drawn
by the Trustee thereunder by any subsequent Drawing are automatically decreased,
subject to reinstatement as set forth in the Letter of Credit.

 

IN WITNESS WHEREOF, the Trustee has executed and delivered this
Certificate as of the _____ day of _________________, ____.

[ ], as Trustee

 

By:_____________________________"

Name:

Title:

Annex D

[Form of Certificate for Partial Redemption Drawing]

"CERTIFICATE FOR DRAWING IN CONNECTION WITH THE PAYMENT

OF PRINCIPAL AND UP TO 45 DAYS' INTEREST UPON PARTIAL

REDEMPTION

Irrevocable Direct Pay Letter of Credit No.
CS1128277

 

The undersigned, a duly authorized officer of the undersigned Trustee (the
'Trustee'), hereby certifies to Fleet National Bank (the 'Bank'), with reference
to Irrevocable Direct Pay Letter of Credit No. CS1128277 (the 'Letter of
Credit', the terms defined therein and not otherwise defined herein being used
herein as therein defined) issued by the Bank in favor of the Trustee, as
follows:

(1)The Trustee is the Trustee under the Indenture.

(2)The Trustee is making a drawing under the Letter of Credit with
respect to a payment, upon redemption of less than all of the Bonds that are
Outstanding (as defined in the Indenture), of the unpaid principal amount of,
and up to 45 days' accrued and unpaid interest on, the Bonds to be redeemed
pursuant to Section 2.4 of the Indenture (other than Borrower Bonds or Pledged
Bonds, as those terms are defined in the Indenture).

(3)The amount of the Partial Redemption Drawing of which this Certificate
is a part is equal to the sum of (i) $____________ being drawn in respect of the
payment of unpaid principal of Bonds (other than Borrower Bonds or Pledged
Bonds, as those terms are defined in the Indenture) to be redeemed, plus (ii)
$_________ being drawn in respect of the payment of accrued and unpaid interest
on such Bonds.

(4)The amount of the Partial Redemption Drawing of which this Certificate
is a part was computed in accordance with the terms and conditions of the Bonds
and the Indenture and does not exceed the amount available to be drawn by the
Trustee under the Letter of Credit; the amount being drawn hereby in respect of
interest does not exceed the Interest Component and the amount being drawn
hereby in respect of principal does not exceed the Principal Component.

(5)This Certificate and the Partial Redemption Drawing of which it is a
part are dated, and are being presented to the Bank for payment on, the date on
which the unpaid principal amount of and interest on Bonds to be redeemed are
due and payable under the Indenture upon redemption of less than all of the
Bonds that are Outstanding (as defined in the Indenture).

(6)Upon receipt by the undersigned of the amount demanded hereby, (a) the
undersigned will apply the same directly to the payment when due of the
principal amount of, and accrued and unpaid interest on, Bonds to be redeemed
pursuant to the Indenture, (b) no portion of said amount shall be applied by the
undersigned for any other purpose, and (c) no portion of said amount shall be
commingled with other funds held by the undersigned.

The Trustee acknowledges that, pursuant to the terms of the Letter of Credit,
upon the Bank's honoring the Partial Redemption Drawing of which this
Certificate is a part, the amount of the Letter of Credit and the amounts
available to be drawn by the Trustee thereunder by any subsequent Drawing are
automatically and permanently decreased by the amounts set forth in the Letter
of Credit. The Trustee acknowledges that pursuant to the immediately preceding
sentence, the Principal Component of the Letter of Credit is being permanently
reduced by $_____________ (the amount set forth in clause (i) of Paragraph 3
above) and the maximum amount to which the Interest Component can be reinstated
under the Letter of Credit is being permanently reduced by $___________ (the
product of (x) the amount set forth in clause (i) of Paragraph 3 above, times
(y) 0.12, times (z) 45/360).

IN WITNESS WHEREOF, the Trustee has executed and delivered this
Certificate as of the _______ day of _________, ____.

[ ], as Trustee

 

By:__________________________"

 Name:

 Title:

Annex E

[Form of Certificate for Final Drawing]

"CERTIFICATE FOR DRAWING IN CONNECTION WITH THE PAYMENT OF
PRINCIPAL AND UP TO 45 DAYS' INTEREST, UPON STATED OR ACCELERATED MATURITY OR
OPTIONAL OR MANDATORY REDEMPTION AS A WHOLE

Irrevocable Direct Pay Letter of Credit No.
CS1128277

 

The undersigned, a duly authorized officer of the undersigned Trustee
(the 'Trustee'), hereby certifies to Fleet National Bank (the 'Bank'), with
reference to Irrevocable Direct Pay Letter of Credit No. CS1128277 (the 'Letter
of Credit', the terms defined therein and not otherwise defined herein being
used herein as therein defined) issued by the Bank in favor of the Trustee, as
follows:

(l)The Trustee is the Trustee under the Indenture.

(2)The Trustee is making a drawing under the Letter of Credit with
respect to a payment*

[ ] upon stated maturity,

[ ] upon acceleration, pursuant to Section 8.1 of the Indenture,

[ ] upon optional redemption in whole, pursuant to Section 2.4 of the
Indenture,

[ ] upon mandatory redemption in whole, pursuant to Section 2.4 of the
 Indenture,

of the unpaid principal amount of and up to 45 days' accrued and unpaid
interest on, all of the Bonds that are Outstanding within the meaning of
the Indenture (other than Borrower Bonds or Pledged Bonds, as those terms are
defined in the Indenture).

(3)The amount of the Final Drawing of which this Certificate is a part is
equal to the sum of (i) $_____________ being drawn in respect of the payment of
unpaid principal of Bonds 

(other than Borrower Bonds or Pledged Bonds, as those terms are defined in
the Indenture), plus (ii) $_________ being drawn in respect of the payment of
accrued and unpaid interest on such Bonds.

(4)The amount of the Final Drawing of which this Certificate is a part
was computed in compliance with the terms and conditions of the Bonds and the
Indenture and does not exceed the amount available to be drawn by the Trustee
under the Letter of Credit; the amount being drawn hereby in respect of interest
does not exceed the Interest Component and the amount being drawn hereby in
respect of principal does not exceed the Principal Component.

(5)Upon receipt by the undersigned of the amount demanded hereby, (a) the
undersigned will apply the same directly to the payment when due of the
principal amount of, and accrued and unpaid interest on, the Bonds pursuant to
the Indenture, (b) no portion of said amount shall be applied by the undersigned
for any other purpose, and (c) no portion of said amount shall be commingled
with other funds held by the undersigned.

The Trustee acknowledges that, pursuant to the terms of the Letter of Credit,
upon the Bank's honoring the Final Drawing of which this Certificate is a part,
the Letter of Credit is automatically terminated and no further amounts are
available to be drawn by the Trustee thereunder.

 

IN WITNESS WHEREOF, the Trustee has executed and delivered this
Certificate as of the _____________ day of ____________, ____.

[ ], as Trustee

 

By:_________________________"

 Name:

 Title:

Annex F

[Form of Reinstatement Certificate for Tender
Drawing]

"CERTIFICATE FOR THE REINSTATEMENT OF AMOUNTS AVAILABLE UNDER
IRREVOCABLE DIRECT PAY LETTER OF CREDIT NO. CS1128277

The undersigned, a duly authorized officer of the undersigned
Trustee (the 'Trustee'), hereby certifies to Fleet National Bank (the 'Bank'),
with reference to Irrevocable Direct Pay Letter of Credit No. CS1128277 (the
'Letter of Credit', the terms defined therein and not otherwise defined herein
being used herein as therein defined) issued by the Bank in favor of the
Trustee, as follows:

(1)The Trustee is the Trustee under the Indenture.

(2)The amount of $__________ paid to you today by or on behalf of the
Borrower is a payment made to reimburse you, pursuant to Section 2(f) of the
Reimbursement Agreement dated as of January 1, 2000 (the "Reimbursement
Agreement") among the Borrower and the Bank, for amounts drawn under the Letter
of Credit by Tender Drawings. Of such amount, $___________ represents the
aggregate principal amount of Bonds resold or to be resold on behalf of the
Borrower. The Trustee hereby requests that you reinstate the Principal Component
of the Letter of Credit upon receipt of such payment in an amount equal to such
principal amount and that you reinstate the portion of the Interest Component of
the Letter of Credit relating to such Bonds.

 

IN WITNESS WHEREOF, the Trustee has executed and delivered this Certificate
as of the __________ day of ___________, ____.

[ ], as Trustee

 

By:_______________________"

 Name:

 Title:

Annex G

[Form of Transfer Certificate]

"INSTRUCTION TO TRANSFER

 

[Date]

 

Fleet National Bank

c/o Fleet Pennsylvania Services

Trade Services Operations

One Fleet Way

Scranton, PA 18507

Attention: Standby Letter of

Credit Unit

Mail Code: PASCS0M2

 
Re: Fleet National Bank Irrevocable Direct Pay Letter of Credit No.
CS1128277

Ladies and Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably transfers
to the following (the Transferee):

________________________________

[Name of Transferee]

__________________________________

[Address]

 

 

all rights of the undersigned beneficiary to draw under the above-captioned
Letter of Credit (the 'Letter of Credit') in its entirety. The Transferee has
succeeded the undersigned as Trustee under the Indenture (as defined in the
Letter of Credit).

By this transfer, all rights of the undersigned beneficiary in the Letter
of Credit are transferred to the Transferee and the Transferee shall have the
sole rights as beneficiary thereof, including sole rights relating to any
amendments of the Letter of Credit, whether increases in the amount to be drawn
thereunder, extensions of the expiration date thereof, or other amendments, and
whether such amendments now exist or are made after the date hereof. All
amendments of the Letter of Credit are to be delivered directly to the
Transferee without necessity of any consent of or notice to the undersigned
beneficiary. The undersigned hereby certifies that the Transferee has become
successor Trustee under the Indenture, and has accepted such appointment in
writing.

The original of the Letter of Credit is returned herewith, and in
accordance therewith we ask you to endorse the within transfer on the reverse
thereof, and forward it directly to the Transferee with your customary notice of
transfer.

 

Very truly yours,

[ ], as predecessor Trustee

 

By:________________________________

 Authorized Officer

 

We certify that we have succeeded [predecessor Trustee] as trustee under
the Indenture.

 

[Name of Transferee]

 

By:

Authorized Officer

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