Document:

EX-4.19

Exhibit 4.19

GUARANTEE AGREEMENT

Between

FIRST FINANCIAL BANCORP.

as Guarantor,

WILMINGTON TRUST COMPANY

as Guarantee Trustee,

Dated as of                                         

 

 

     Certain Sections of this Guarantee Agreement relating to Sections 310 through 318 of the Trust
Indenture Act of 1939:

	 		
	Trust Indenture Act Section	 	Guarantee Agreement Section
	310(a)(1)
	 	4.1(a)
	(a)(2)
	 	4.1(a)
	(a)(3)
	 	 Not Applicable
	(a)(4)
	 	 Not Applicable
	(b)
	 	2.8, 4.1(c)
	311(a)
	 	 Not Applicable
	(b)
	 	 Not Applicable
	312(a)
	 	2.2(a)
	(b)
	 	2.2(b)
	(c)
	 	 Not Applicable
	313(a)
	 	2.3
	(a)(4)
	 	2.3
	(b)
	 	2.3
	(c)
	 	2.3
	(d)
	 	2.3
	314(a)
	 	2.4
	(b)
	 	2.4
	(c)(1)
	 	2.5
	(c)(2)
	 	2.5
	(c)(3)
	 	2.5
	(e)
	 	1.1, 2.5, 3.2
	315(a)
	 	3.1 (d)
	(b)
	 	2.7
	(c)
	 	3.1(c)
	(d)
	 	3.1(d)
	(e)
	 	 Not Applicable
	316(a)
	 	1.1, 2.6, 5.4
	(a)(1)(A)
	 	5.4
	(a)(1)(B)
	 	5.4
	(a)(2)
	 	 Not Applicable
	(b)
	 	5.3
	(c)
	 	 Not Applicable
	317(a)(1)
	 	 Not Applicable
	(a)(2)
	 	 Not Applicable
	(b)
	 	 Not Applicable
	318(a)
	 	2.1

 

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Guarantee Agreement.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	 
	Section 1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II. TRUST INDENTURE ACT
	 	 	4	 
	 
	Section 2.1 Trust Indenture Act; Application
	 	 	4	 
	Section 2.2 List of Holders
	 	 	4	 
	Section 2.3 Reports by the Guarantee Trustee
	 	 	4	 
	Section 2.4 Periodic Reports to the Guarantee Trustee
	 	 	4	 
	Section 2.5 Evidence of Compliance with Conditions Precedent
	 	 	5	 
	Section 2.6 Events of Default; Waiver
	 	 	5	 
	Section 2.7 Event of Default; Notice
	 	 	5	 
	Section 2.8 Conflicting Interests
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III. POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
	 	 	5	 
	 
	Section 3.1 Powers and Duties of the Guarantee Trustee
	 	 	5	 
	Section 3.2 Certain Rights of Guarantee Trustee
	 	 	6	 
	Section 3.3 Compensation; Indemnity; Fees
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV. GUARANTEE TRUSTEE
	 	 	8	 
	 
	Section 4.1 Guarantee Trustee; Eligibility
	 	 	8	 
	Section 4.2 Appointment, Removal and Resignation of the Guarantee Trustee
	 	 	9	 
	 
	 	 	 	 
	ARTICLE V. GUARANTEE
	 	 	9	 
	 
	Section 5.1 Guarantee
	 	 	9	 
	Section 5.2 Waiver of Notice and Demand
	 	 	10	 
	Section 5.3 Obligations Not Affected
	 	 	10	 
	Section 5.4 Rights of Holders
	 	 	10	 
	Section 5.5 Guarantee of Payment
	 	 	11	 
	Section 5.6 Subrogation
	 	 	11	 
	Section 5.7 Independent Obligations
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI. COVENANTS AND SUBORDINATION
	 	 	11	 
	 
	Section 6.1 Subordination
	 	 	11	 
	Section 6.2 Pari Passu Guarantees
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII. TERMINATION
	 	 	12	 
	 
	Section 7.1 Termination
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VIII. MISCELLANEOUS
	 	 	12	 
	 
	Section 8.1 Successors and Assigns
	 	 	12	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 8.2 Amendments
	 	 	12	 
	Section 8.3 Notices
	 	 	12	 
	Section 8.4 Benefit
	 	 	13	 
	Section 8.5 Interpretation
	 	 	13	 
	Section 8.6 Governing Law
	 	 	14	 
	Section 8.7 Counterparts
	 	 	14	 
	Section 8.8 Force Majeure
	 	 	14	 

ii

 

GUARANTEE AGREEMENT

     THIS GUARANTEE AGREEMENT, dated as of                     , is executed and delivered by FIRST FINANCIAL
BANCORP., an Ohio corporation (the “Guarantor”), having its principal office at 4000 Smith
Road, Cincinnati, Ohio 45209, and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as
trustee (the “Guarantee Trustee”), for the benefit of the Holders (as defined herein) from
time to time of the Preferred Capital Securities (as defined herein) of FFBC Capital Trust [ ], a
Delaware statutory trust (the “Issuer Trust”).

RECITALS

     WHEREAS, pursuant to an Amended and Restated Trust Agreement (the “Trust Agreement”),
dated of even date herewith, among the Guarantor, as Depositor, Wilmington Trust Company, as
Property Trustee (the “Property Trustee”), Wilmington Trust Company, as Delaware Trustee
(the “Delaware Trustee,” and together with the Property Trustee, collectively, the
“Issuer Trustees”), the Administrative Trustees named therein and the Holders from time to
time of undivided beneficial interests in the assets of the Issuer Trust, the Issuer Trust is
issuing up to $                      aggregate Liquidation Amount (as defined herein) of its Preferred Capital
Securities (the “Preferred Capital Securities”), representing preferred undivided
beneficial interests in the assets of the Issuer Trust and having the terms set forth in the Trust
Agreement and $                      aggregate Liquidation Amount (as defined herein) of its                      % Common
Securities (the “Common Securities” and together with the Preferred Capital Securities, the “Trust
Securities”);

     WHEREAS, the Preferred Capital Securities will be issued by the Issuer Trust and the proceeds
thereof, together with the proceeds from the issuance of the Issuer Trust’s Common Securities (the
“Common Securities”), representing common undivided beneficial interests in the assets of
the Issuer Trust, to the Guarantor, will be used to purchase the Junior Subordinated Debentures due
                     (the “Junior Subordinated Debentures”) of the Guarantor, which will be deposited
with Wilmington Trust Company, as Property Trustee under the Trust Agreement, as trust assets; and

     WHEREAS, as an inducement to the Holders to purchase Trust Securities, the Guarantor is
willing to irrevocably and unconditionally agree, to the extent set forth herein, to pay to the
Holders of the Trust Securities the Guarantee Payments (as defined herein) and to make certain
other payments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase of the Trust Securities by each Holder, which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor executes and
delivers this Guarantee Agreement for the benefit of the Holders from time to time.

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions.

     As used in this Guarantee Agreement, the terms set forth below shall have the following
meanings. Capitalized terms used but not otherwise defined herein shall have the meanings assigned
to such terms in the Trust Agreement.

     “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any specified Person means
the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting

 

 

securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

     “Board of Directors” means the board of directors of the Guarantor or any committee of
that board duly authorized to act for the Guarantor hereunder.

     “Common Securities” has the meaning specified in the recitals to this Guarantee
Agreement.

     “Event of Default” means (i) a default by the Guarantor in any of its payment
obligations under this Guarantee Agreement, or (ii) a default by the Guarantor in any other
obligation hereunder that remains unremedied for 60 days.

     “Guarantee Agreement” means this Guarantee Agreement, as modified, amended or
supplemented from time to time.

     “Guarantee Payments” means the following payments or distributions, without
duplication, with respect to the Trust Securities, to the extent not paid or made by or on behalf
of the Issuer Trust: (i) any accumulated and unpaid Distributions (as defined in the Trust
Agreement) required to be paid on the Trust Securities, to the extent the Issuer Trust shall have
funds on hand available therefor at such time, (ii) the Redemption Price, with respect to any Trust
Securities called for redemption by the Issuer Trust to the extent that the Issuer Trust shall have
funds on hand available therefor at such time, and (iii) upon a voluntary or involuntary
dissolution, termination, winding-up or liquidation of the Issuer Trust, unless the Junior
Subordinated Debentures are distributed to the Holders, the lesser of (a) the aggregate of the
Liquidation Amount of all outstanding Trust Securities and all accumulated and unpaid Distributions
to the date of payment to the extent the Issuer Trust shall have funds on hand available to make
such payment at such time and (b) the amount of assets of the Issuer Trust remaining available for
distribution to Holders on liquidation of the Issuer Trust (in either case, the “Liquidation
Distribution”).

     “Guarantee Trustee” means Wilmington Trust Company, until a Successor Guarantee
Trustee has been appointed and has accepted such appointment pursuant to the terms of this
Guarantee Agreement and thereafter means each such Successor Guarantee Trustee.

     “Guarantor” has the meaning specified in the first paragraph of this Guarantee
Agreement.

     “Holder” means any holder, as registered on the books and records of the Issuer Trust,
of any Trust Securities; provided, however, that, in determining whether the holders of the
requisite percentage of Trust Securities have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the
Guarantor or the Guarantee Trustee.

     “Indenture” means the Junior Subordinated Indenture, dated as of ___, 20___, between
the Guarantor and Wilmington Trust Company, as trustee, as it may be modified, amended or
supplemented from time to time to provide for the Junior Subordinated Debentures.

     “Issuer Trust” has the meaning specified in the first paragraph of this Guarantee
Agreement.

     “Like Amount” means (a) with respect to a redemption of Trust Securities, Trust
Securities having a Liquidation Amount equal to that portion of the principal amount of Junior
Subordinated Debentures to be contemporaneously redeemed in accordance with the Indenture,
allocated to the Common Securities and to the Preferred Capital Securities based upon the relative
Liquidation Amounts of such classes and (b) with respect to a distribution of Junior Subordinated
Debentures to Holders of Trust Securities in connection with a dissolution or liquidation of the
Issuer Trust, Junior Subordinated Debentures having a principal amount equal to the Liquidation
Amount of the Trust Securities of the Holder to whom such Junior Subordinated Debentures are
distributed.

2

 

     “Liquidation Amount” means the stated amount of $[___] per Preferred Capital Security
and $[___] per Common Security.

     “Majority in Liquidation Amount of the Trust Securities” means, except as provided by
the Trust Indenture Act, Trust Securities representing more than 50% of the aggregate Liquidation
Amount of all Trust Securities then Outstanding.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by the
Chairman or a Vice Chairman of the Board of Directors of such Person or the President or a Vice
President of such Person, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of such Person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Guarantee Agreement shall include:

          (a) a statement by each officer signing the Officers’ Certificate that such officer has read
the covenant or condition and the definitions relating thereto;

          (b) a brief statement of the nature and scope of the examination or investigation undertaken
by such officer in rendering the Officers’ Certificate;

          (c) a statement that such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

          (d) a statement as to whether, in the opinion of such officer, such condition or covenant has
been complied with.

     “Outstanding” has the meaning specified in the Trust Agreement.

     “Person” means a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint stock company, company, limited liability company,
trust, statutory or business trust, unincorporated association, or government or any agency or
political subdivision thereof, or any other entity of whatever nature.

     “Preferred Capital Securities” has the meaning specified in the recitals to this
Guarantee Agreement.

     “Redemption Date” means, with respect to any Preferred Capital Security to be
redeemed, the date fixed for such redemption by or pursuant to the Trust Agreement; provided that
each Debenture Redemption Date and the stated maturity of the Junior Subordinated Debentures shall
be a Redemption Date for a Like Amount of Preferred Capital Securities, including, but not limited
to any date of redemption pursuant to the occurrence of any Special Event.

     “Redemption Price” has the meaning specified in the Trust Agreement.

     “Responsible Officer” means, when used with respect to the Guarantee Trustee, any
officer assigned to the Corporate Trust Office, including any managing director, vice president,
principal, assistant vice president, assistant treasurer, assistant secretary or any other officer
of the Guarantee Trustee customarily performing functions similar to those performed by any of the
above designated officers and having direct responsibility for the administration of this Guarantee
Agreement, and also means, with respect to a particular matter, any other officer of the Guarantee
Trustee to whom such matter is referred because of such officer’s knowledge of and familiarity with
the particular subject.

     “Senior Indebtedness” has the meaning specified in the Indenture.

3

 

     “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the
qualifications to act as Guarantee Trustee under Article IV hereof.

     “Trust Agreement” means the Amended and Restated Trust Agreement of the Issuer Trust
referred to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from
time to time..

     “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as amended.

     “Trust Securities” has the meaning specified in the recitals to this Guarantee
Agreement.

ARTICLE II

TRUST INDENTURE ACT

     Section 2.1 Trust Indenture Act; Application.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Guarantee Agreement, the
provision of the Trust Indenture Act shall control. If any provision of this Guarantee Agreement
modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Guarantee Agreement as so modified or
excluded, as the case may be.

     Section 2.2 List of Holders.

          (a) The Guarantor will furnish or cause to be furnished to the Guarantee Trustee a list of
Holders at the following times:

               (i) [quarterly], not more than 15 days after the last day of [February, May, August and
November], in each year, a list, in such form as the Guarantee Trustee may reasonably require, of
the names and addresses of the Holders as of the last day of [February, May, August and November],
as applicable; and

               (ii) at such other times as the Guarantee Trustee may request in writing, within 30 days after
the receipt by the Guarantor of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished.

          (b) The Guarantee Trustee shall comply with the requirements of Sections 311(a), 311(b) and
312(b) of the Trust Indenture Act.

     Section 2.3 Reports by the Guarantee Trustee.

     Not later than [                    ] of each year, commencing [                    , ___], the Guarantee Trustee
shall provide to the Holders such reports, if any, as are required by Section 313 of the Trust
Indenture Act in the form and in the manner provided by Section 313 of the Trust Indenture Act. If
this Guarantee Agreement shall have been qualified under the Trust Indenture Act, the Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act.

     Section 2.4 Periodic Reports to the Guarantee Trustee.

     The Guarantor shall provide to the Guarantee Trustee and the Holders such documents, reports
and information, if any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314 of the Trust Indenture Act, in the form, in the manner and at
the times required by Section 314 of the Trust Indenture Act, provided that such documents, reports
and information shall be

4

 

required to be provided to the Securities and Exchange Commission only if this Guarantee
Agreement shall have been qualified under the Trust Indenture Act.

     Section 2.5 Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Guarantee Trustee such evidence of compliance with such
conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required
to be given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given in the form
of an Officers’ Certificate.

     Section 2.6 Events of Default; Waiver.

     The Holders of at least a Majority in Liquidation Amount of the Trust Securities may, by vote,
on behalf of the Holders of all the Trust Securities, waive any past default or Event of Default
and its consequences. Upon such waiver, any such default or Event of Default shall cease to exist,
and any default or Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Guarantee Agreement, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

     Section 2.7 Event of Default; Notice.

          (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders, notice of any such Event of Default
known to the Guarantee Trustee, unless such Event of Default has been cured or waived before the
giving of such notice; provided that, except in the case of a default in the payment of a Guarantee
Payment, the Guarantee Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee or a trust committee of directors and/or Responsible
Officers of the Guarantee Trustee in good faith determines that the withholding of such notice is
in the interests of the Holders.

          (b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless
a Responsible Officer charged with the administration of this Guarantee Agreement shall have
received written notice of such Event of Default.

     Section 2.8 Conflicting Interests.

     The Trust Agreement and the Indenture shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b)
of the Trust Indenture Act.

ARTICLE III

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     Section 3.1 Powers and Duties of the Guarantee Trustee.

          (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of the
Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except
to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its
appointment to act as Successor Guarantee Trustee hereunder. The right, title and interest of the
Guarantee Trustee, as such, hereunder shall automatically vest in any Successor Guarantee Trustee
upon acceptance by such Successor Guarantee Trustee of its appointment hereunder, and such vesting
and cessation of title shall be effective whether or not conveyancing documents have been executed
and delivered pursuant to the appointment of such Successor Guarantee Trustee.

5

 

          (b) If an Event of Default has occurred and is continuing, the Guarantee Trustee shall enforce
this Guarantee Agreement for the benefit of the Holders.

          (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee Agreement (including pursuant to Section 2.1), and no
implied covenants shall be read into this Guarantee Agreement against the Guarantee Trustee. If an
Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6), the
Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee
Agreement, and use the same degree of care and skill in its exercise thereof, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs.

          (d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee
Trustee from liability for its own negligent action, its own negligent failure to act or its own
willful misconduct, except that:

               (i) Prior to the occurrence of any Event of Default and after the curing or waiving of all
such Events of Default that may have occurred:

                    (A) the duties and obligations of the Guarantee Trustee shall be determined solely by the
express provisions of this Guarantee Agreement (including pursuant to Section 2.1), and the
Guarantee Trustee shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Guarantee Agreement (including pursuant to Section 2.1); and

                    (B) in the absence of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee
may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and
conforming to the requirements of this Guarantee Agreement; but in the case of any such
certificates or opinions that by any provision hereof or of the Trust Indenture Act are
specifically required to be furnished to the Guarantee Trustee, the Guarantee Trustee shall be
under a duty to examine the same to determine whether or not they conform to the requirements of
this Guarantee Agreement;

               (ii) The Guarantee Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer of the Guarantee Trustee, unless it shall be proved that the Guarantee
Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made;

               (iii) The Guarantee Trustee shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with the direction of the Holders of not less than a
Majority in Liquidation Amount of the Preferred Capital Securities relating to the time, method and
place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising
any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement; and

               (iv) Subject to Sections 3.1(b) and (c), no provision of this Guarantee Agreement shall
require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of its rights or
powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of
such funds or liability is not reasonably assured to it under the terms of this Guarantee Agreement
or adequate indemnity against such risk or liability is not reasonably assured to it.

     Section 3.2 Certain Rights of Guarantee Trustee.

          (a) Subject to the provisions of Section 3.1:

6

 

               (i) The Guarantee Trustee may rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document reasonably believed by it to be genuine and to have been signed, sent or presented by the
proper party or parties.

               (ii) Any direction or act of the Guarantor contemplated by this Guarantee Agreement shall be
sufficiently evidenced by an Officers’ Certificate unless otherwise prescribed herein.

               (iii) Whenever, in the administration of this Guarantee Agreement, the Guarantee Trustee shall
deem it desirable that a matter be proved or established before taking, suffering or omitting to
take any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and rely upon an Officers’
Certificate which, upon receipt of such request from the Guarantee Trustee, shall be promptly
delivered by the Guarantor.

               (iv) The Guarantee Trustee may consult with legal counsel, and the written advice or opinion
of such legal counsel with respect to legal matters shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good
faith and in accordance with such advice or opinion. Such legal counsel may be legal counsel to the
Guarantor or any of its Affiliates and may be one of its employees. The Guarantee Trustee shall
have the right at any time to seek instructions concerning the administration of this Guarantee
Agreement from any court of competent jurisdiction.

               (v) The Guarantee Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Guarantee Agreement at the request or direction of any Holder, unless such
Holder shall have provided to the Guarantee Trustee such adequate security and indemnity as would
satisfy a reasonable person in the position of the Guarantee Trustee, against the costs, expenses
(including attorneys’ fees and expenses) and liabilities that might be incurred by it in complying
with such request or direction, including such reasonable advances as may be requested by the
Guarantee Trustee; provided that nothing contained in this Section 3.2(a)(v) shall be taken to
relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to
exercise the rights and powers vested in it by this Guarantee Agreement.

               (vi) The Guarantee Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Guarantee Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

               (vii) The Guarantee Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through its agents or attorneys, and the Guarantee
Trustee shall not be responsible for any negligence or willful misconduct on the part of any such
agent or attorney appointed with due care by it hereunder.

               (viii) Whenever in the administration of this Guarantee Agreement the Guarantee Trustee shall
deem it desirable to receive instructions with respect to enforcing any remedy or right or taking
any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders,
(B) may refrain from enforcing such remedy or right or taking such other action until such
instructions are received, and (C) shall be protected in acting in accordance with such
instructions..

          (b) No provision of this Guarantee Agreement shall be deemed to impose any duty or obligation
on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or
obligation

7

 

 conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the
Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law, to perform
any such act or acts or to exercise any such right, power, duty or obligation. No permissive power
or authority available to the Guarantee Trustee shall be construed to be a duty to act in
accordance with such power and authority.

     Section 3.3
Compensation; Indemnity; Fees.

     The Guarantor agrees:

          (a) to pay to the Guarantee Trustee from time to time such reasonable compensation for all
services rendered by it hereunder as may be agreed by the Guarantor and the Guarantee Trustee from
time to time (which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

          (b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon
request for all reasonable expenses, disbursements and advances incurred or made by the Guarantee
Trustee in accordance with any provision of this Guarantee Agreement (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and (c) to
indemnify the Guarantee Trustee for, and to hold it harmless against, any loss, liability or
expense incurred without negligence, willful misconduct or bad faith on the part of the Guarantee
Trustee, arising out of or in connection with the acceptance or administration of this Guarantee
Agreement, including the costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties hereunder.

          The Guarantee Trustee will not claim or exact any lien or charge on any Guarantee Payments as
a result of any amount due to it under this Guarantee Agreement.

          The provisions of this Section 3.3 shall survive the termination of this Guarantee Agreement
or the resignation or removal of the Guarantee Trustee.

ARTICLE IV

GUARANTEE TRUSTEE

     Section 4.1 Guarantee Trustee; Eligibility.

          (a) There shall at all times be a Guarantee Trustee, which shall:

               (i) not be an Affiliate of the Guarantor; and

               (ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000, and shall be a corporation meeting the
requirements of Section 310(a) of the Trust Indenture Act. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of its supervising or examining
authority, then, for the purposes of this Section 4.1 and to the extent permitted by the Trust
Indenture Act, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published.

          (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section
4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2.

8

 

          (c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

     Section 4.2 Appointment, Removal and Resignation of the Guarantee Trustee.

          (a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or removed at any time
by the action of the Holders of a Majority in Liquidation Amount of the Trust Securities delivered
to the Guarantee Trustee and the Guarantor (i) for cause or (ii) if a Debenture Event of Default
(as defined in the Trust Agreement) shall have occurred and be continuing at any time.

          (b) Subject to Section 4.2(c), the Guarantee Trustee may resign from office (without need for
prior or subsequent accounting) by giving written notice thereof to the Holders and the Guarantor
and by appointing a successor Guarantee Trustee. The Guarantee Trustee shall appoint a successor by
requesting from at least three Persons meeting the requirements of Section 4.1(a) their expenses
and charges to serve as the Guarantee Trustee, and selecting the Person who agrees to the lowest
expenses and charges.

          (c) The Guarantee Trustee appointed hereunder shall hold office until a Successor Guarantee
Trustee shall have been appointed and shall have accepted such appointment. No removal or
resignation of a Guarantee Trustee shall be effective until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor and, in the case of any resignation, the resigning
Guarantee Trustee.

          (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as
provided in this Section 4.2 within 60 days after delivery to the Holders and the Guarantor of a
notice of resignation, the resigning Guarantee Trustee may petition, at the expense of the
Guarantor, any court of competent jurisdiction for appointment of a Successor Guarantee Trustee.
Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a
Successor Guarantee Trustee.

          (e) If a resigning Guarantee Trustee shall fail to appoint a successor, or if a Guarantee
Trustee shall be removed or become incapable of acting as Guarantee Trustee and a replacement shall
not be appointed prior to such resignation or removal, or if a vacancy shall occur in the office of
Guarantee Trustee for any cause, the Holders of the Trust Securities, by the action of the Holders
of record of not less than 25% in aggregate Liquidation Amount of the Trust Securities then
Outstanding (as defined in the Trust Agreement) delivered to such Guarantee Trustee, may appoint a
Successor Guarantee Trustee or Trustees.

     If no successor Guarantee Trustee shall have been so appointed by the Holders of the Trust
Securities and accepted appointment, any Holder, on behalf of such Holder and all others similarly
situated, or any other Guarantee Trustee, may petition any court of competent jurisdiction for the
appointment of a successor Guarantee Trustee.

ARTICLE V

GUARANTEE

     Section 5.1 Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (without duplication of amounts theretofore paid by or on behalf of the Issuer
Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the
Issuer Trust may have or assert, except the defense of payment. The Guarantor’s obligation to make
a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to
the Holders or by causing the Issuer Trust to pay such amounts to the Holders.

9

 

     Section 5.2 Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any
liability to which it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person before
proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.

     Section 5.3 Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under this Guarantee
Agreement shall in no way be affected or impaired by reason of the happening from time to time of
any of the following:

          (a) the release or waiver, by operation of law or otherwise, of the performance or observance
by the Issuer Trust of any express or implied agreement, covenant, term or condition relating to
the Trust Securities to be performed or observed by the Issuer Trust;

          (b) the extension of time for the payment by the Issuer Trust of all or any portion of the
Distributions (other than an extension of time for payment of Distributions that results from an
election by the Depositor to defer any interest payment on the Junior Subordinated Debentures as so
provided in the Indenture), Redemption Price, Liquidation Distribution or any other sums payable
under the terms of the Trust Securities or the extension of time for the performance of any other
obligation under, arising out of, or in connection with, the Trust Securities;

          (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce,
assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the
terms of the Trust Securities, or any action on the part of the Issuer Trust granting indulgence or
extension of any kind;

          (d) the voluntary or involuntary liquidation, dissolution, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or
readjustment of debt of, or other similar proceedings affecting, the Issuer Trust or any of the
assets of the Issuer Trust;

          (e) any invalidity of, or defect or deficiency in, the Trust Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor (other than payment of the underlying obligation), it being the
intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and
unconditional under any and all circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain the consent of, the
Guarantor with respect to the happening of any of the foregoing.

     Section 5.4 Rights of Holders.

     The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with
the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee has the
right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority
in Liquidation Amount of the Trust Securities have the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this
Guarantee Agreement or

10

 

exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee
Agreement; and (iv) any Holder may institute a legal proceeding directly against the Guarantor to
enforce its rights under this Guarantee Agreement, without first instituting a legal proceeding
against the Guarantee Trustee, the Issuer Trust or any other Person.

     Section 5.5 Guarantee of Payment.

     This Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee
Agreement will not be discharged except by payment of the Guarantee Payments in full (without
duplication of amounts theretofore paid by the Issuer Trust) or upon the distribution of Junior
Subordinated Debentures to Holders as provided in the Trust Agreement.

     Section 5.6 Subrogation.

     The Guarantor shall be subrogated to all rights (if any) of the Holders against the Issuer
Trust in respect of any amounts paid to the Holders by the Guarantor under this Guarantee
Agreement; provided, however, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any rights which it may acquire by
way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee Agreement, if at the time of any such payment, any amounts are due and
unpaid under this Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of
the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to
pay over such amount to the Holders.

     Section 5.7 Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer Trust with respect to the Trust Securities and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this
Guarantee Agreement notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.

ARTICLE VI

COVENANTS AND SUBORDINATION

     Section 6.1 Subordination.

     The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured
obligations of the Guarantor and will rank subordinate and junior in right of payment to all Senior
Indebtedness of the Guarantor to the extent and in the manner set forth in the Indenture with
respect to the Junior Subordinated Debentures, and the provisions of Article XIII of the Indenture
will apply, mutatis mutandis, to the obligations of the Guarantor hereunder. The obligations of the
Guarantor hereunder do not constitute Senior Indebtedness (as defined in the Indenture) of the
Guarantor.

     Section 6.2 Pari Passu Guarantees.

     The obligations of the Guarantor under this Guarantee Agreement shall rank pari passu with any
similar guarantee agreements issued by the Guarantor on behalf of the holders of Trust Securities
issued by the Issuer Trust and with any other security, guarantee or other obligation that is
expressly stated to rank pari passu with the obligations of the Guarantor under this Guarantee
Agreement.

11

 

ARTICLE VII

TERMINATION

     Section 7.1 Termination.

     This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full
payment of the Redemption Price of all Trust Securities, (ii) the distribution of Junior
Subordinated Debentures to the Holders in exchange for all of the Trust Securities or (iii) full
payment of the amounts payable in accordance with Article IX of the Trust Agreement upon
liquidation of the Issuer Trust. Notwithstanding the foregoing, this Guarantee Agreement will
continue to be effective or will be reinstated, as the case may be, if at any time any Holder is
required to repay any sums paid with respect to Trust Securities or this Guarantee Agreement.

ARTICLE VIII

MISCELLANEOUS

     Section 8.1 Successors and Assigns.

     All guarantees and agreements contained in this Guarantee Agreement shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the Trust Securities then outstanding. Except in connection with a consolidation,
merger or sale involving the Guarantor that is permitted under Article VIII of the Indenture and
pursuant to which the assignee agrees in writing to perform the Guarantor’s obligations hereunder,
the Guarantor shall not assign its obligations hereunder, and any purported assignment other than
in accordance with this provision shall be void.

     Section 8.2 Amendments.

     Except with respect to any changes that do not materially adversely affect the rights of the
Holders (in which case no consent of the Holders will be required), this Guarantee Agreement may
only be amended with the prior approval of the Holders of not less than a Majority in Liquidation
Amount of the Trust Securities. The provisions of Article VI of the Trust Agreement concerning
meetings of the Holders shall apply to the giving of such approval.

     Section 8.3 Notices.

     Any notice, request or other communication required or permitted to be given hereunder shall
be in writing, duly signed by the party giving such notice, and delivered, telecopied (confirmed by
delivery of the original) or mailed by first class mail as follows:

          (a) if given to the Guarantor, to the address or telecopy number set forth below or such other
address or telecopy number as the Guarantor may give notice to the Guarantee Trustee and the
Holders:

First Financial Bancorp.

4000 Smith Road

Cincinnati, Ohio 45209

Facsimile No.: [                    ]

Attention: [                    ]

          (b) if given to the Issuer Trust, in care of the Guarantee Trustee, at the Issuer Trust’s (and
the Guarantee Trustee’s) address set forth below or such other address or telecopy number as the
Guarantee Trustee on behalf of the Issuer Trust may give notice to the Guarantor and Holders:

12

 

FFBC Capital Trust [ ]

c/o First Financial Bancorp.

4000 Smith Road

Cincinnati, Ohio 45209

Facsimile No.: [                    ]

Attention: [                    ]

      with a copy to:

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Facsimile No.: (302) 636-4140

Attention: Corporate Trust Administration

          (c) if given to the Guarantee Trustee:

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Facsimile No.: (302) 636-4140

Attention: Corporate Trust Administration

          (d) if given to any Holder, at the address set forth on the books and records of the Issuer
Trust.

     All notices hereunder shall be deemed to have been given when received in person, telecopied
with receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or
other document is refused delivery or cannot be delivered because of a changed address of which no
notice was given, such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

     Section 8.4 Benefit.

     This Guarantee Agreement is solely for the benefit of the Holders and is not separately
transferable from the Trust Securities.

     Section 8.5 Interpretation.

     In this Guarantee Agreement, unless the context otherwise requires:

          (a) capitalized terms used in this Guarantee Agreement but not defined in the preamble hereto
have the respective meanings assigned to them in Section 1.1;

          (b) a term defined anywhere in this Guarantee Agreement has the same meaning throughout;

          (c) all references to “the Guarantee Agreement” or “this Guarantee Agreement” are to this
Guarantee Agreement as modified, supplemented or amended from time to time;

          (d) all references in this Guarantee Agreement to Articles and Sections are to Articles and
Sections of this Guarantee Agreement unless otherwise specified;

13

 

          (e) a term defined in the Trust Indenture Act has the same meaning when used in this Guarantee
Agreement unless otherwise defined in this Guarantee Agreement or unless the context otherwise
requires;

          (f) a reference to the singular includes the plural and vice versa; and

          (g) the masculine, feminine or neuter genders used herein shall include the masculine,
feminine and neuter genders.

     Section 8.6 Governing Law.

     THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

     Section 8.7 Counterparts.

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

     Section 8.8 Force Majeure.

     In no event shall the Guarantee Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that that Guarantee Trustee shall use reasonable efforts
that are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

[Signatures appear on next page.]

14

 

     THIS GUARANTEE AGREEMENT is executed as of the day and year first above written.

	 	 	 	 	 
	 	 	FIRST FINANCIAL BANCORP.,
	 	 	as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,
	 	 	as Guarantee Trustee, and not in its individual capacity
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

SPexhibit_10-1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
Exhibit 10.1

     

    

     

    CREDIT
AGREEMENT

     

    among

     

    AGL
RESOURCES INC.,

    as
Guarantor,

     

    AGL
CAPITAL CORPORATION,

    as
Borrower,

     

    The
Several Lenders

    from Time
to Time Parties Hereto,

     

    WACHOVIA
BANK, NATIONAL ASSOCIATION,

    as
Administrative Agent,

     

    and

     

    THE BANK
OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,

    CALYON
NEW YORK BRANCH,

    THE ROYAL
BANK OF SCOTLAND PLC, AND

    SUNTRUST
BANK

    as
Co-Syndication Agents

     

    Dated as
of September 30, 2008

     

    WACHOVIA
CAPITAL MARKETS, LLC

    as Sole
Lead Arranger and Sole Book Runner

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Table of
Contents

     

    Section                                                                                                                                                                                                                                                                                                               
Page

     

     

    SECTION
1.

     

    DEFINITIONS

     

    
      	
              1.1

            	
              Defined
      Terms 

            	
              2

            

    

    
      	
              1.2

            	
              Other
      Definitional Provisions. 

            	
              16

            

    

     

    SECTION
2.

     

    AMOUNT
AND TERMS OF COMMITMENTS

     

    
      	
              2.1

            	
              Revolving
      Commitments. 

            	
              17

            

    

    
      	
              2.2

            	
              Procedure
      for Revolving Loan Borrowing 

            	
              17

            

    

    
      	
              2.3

            	
              Evidence
      of Debt. 

            	
              18

            

    

    
      	
              2.4

            	
              Facility
      Fees, etc. 

            	
              18

            

    

    
      	
              2.5

            	
              Termination
      or Reduction of Revolving Commitments 

            	
              19

            

    

    
      	
              2.6

            	
              Optional
      Prepayments 

            	
              19

            

    

    
      	
              2.7

            	
              Prepayments
      on Revolving Commitment Reductions 

            	
              19

            

    

    
      	
              2.8

            	
              Conversion
      and Continuation Options. 

            	
              19

            

    

    
      	
              2.9

            	
              Limitations
      on Eurodollar Tranches 

            	
              20

            

    

    
      	
              2.10

            	
              Interest
      Rates and Payment Dates. 

            	
              20

            

    

    
      	
              2.11

            	
              Computation
      of Interest and Fees. 

            	
              21

            

    

    
      	
              2.12

            	
              Inability
      to Determine Interest Rate 

            	
              21

            

    

    
      	
              2.13

            	
              Pro
      Rata Treatment and Payments. 

            	
              22

            

    

    
      	
              2.14

            	
              Requirements
      of Law. 

            	
              23

            

    

    
      	
              2.15

            	
              Taxes. 

            	
              24

            

    

    
      	
              2.16

            	
              Indemnity 

            	
              26

            

    

    
      	
              2.17

            	
              Change
      of Lending Office 

            	
              26

            

    

    
      	
              2.18

            	
              Illegality 

            	
              26

            

    

    
      	
              2.19

            	
              Replacement
      of Lenders 

            	
              27

            

    

    
      	
              2.20

            	
              Increase
      in Revolving Commitments. 

            	
              27

            

    

     

    SECTION
3.

     

    LETTERS
OF CREDIT

     

    
      	
              3.1

            	
              L/C
      Commitment. 

            	
              29

            

    

    
      	
              3.2

            	
              Procedure
      for Issuance of Letter of Credit 

            	
              29

            

    

    
      	
              3.3

            	
              Fees
      and Other Charges. 

            	
              30

            

    

    
      	
              3.4

            	
              L/C
      Participations. 

            	
              30

            

    

    
      	
              3.5

            	
              Reimbursement
      Obligation of the Borrower. 

            	
              31

            

    

    
      	
              3.6

            	
              Obligations
      Absolute 

            	
              32

            

    

    
      	
              3.7

            	
              Letter
      of Credit Payments 

            	
              32

            

    

    
      	
              3.8

            	
              Applications 

            	
              32

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
4.

     

    REPRESENTATIONS
AND WARRANTIES

     

    
      	
              4.1

            	
              Financial
      Condition 

            	
              33

            

    

    
      	
              4.2

            	
              No
      Change 

            	
              33

            

    

    
      	
              4.3

            	
              Existence;
      Compliance with Law 

            	
              33

            

    

    
      	
              4.4

            	
              Power;
      Authorization; Enforceable Obligations 

            	
              33

            

    

    
      	
              4.5

            	
              No
      Legal Bar 

            	
              34

            

    

    
      	
              4.6

            	
              Litigation 

            	
              34

            

    

    
      	
              4.7

            	
              No
      Default 

            	
              34

            

    

    
      	
              4.8

            	
              Ownership
      of Property; Liens 

            	
              34

            

    

    
      	
              4.9

            	
              Intellectual
      Property 

            	
              34

            

    

    
      	
              4.10

            	
              Taxes 

            	
              34

            

    

    
      	
              4.11

            	
              Federal
      Regulations 

            	
              35

            

    

    
      	
              4.12

            	
              ERISA 

            	
              35

            

    

    
      	
              4.13

            	
              Investment
      Company Act; Other Regulations 

            	
              35

            

    

    
      	
              4.14

            	
              Subsidiaries 

            	
              35

            

    

    
      	
              4.15

            	
              Use
      of Proceeds 

            	
              36

            

    

    
      	
              4.16

            	
              Environmental
      Matters 

            	
              36

            

    

    
      	
              4.17

            	
              Accuracy
      of Information, etc. 

            	
              37

            

    

    
      	
              4.18

            	
              Solvency 

            	
              37

            

    

    
      	
              4.19

            	
              Status
      of Loans and Guarantee Agreement 

            	
              37

            

    

    
      	
              4.20

            	
              OFAC 

            	
              37

            

    

    
      	
              4.21

            	
              USA
      Patriot Act 

            	
              37

            

    

     

    SECTION
5.

     

    CONDITIONS
PRECEDENT

     

    
      	
              5.1

            	
              Conditions
      to Initial Extension of Credit 

            	
              38

            

    

    
      	
              5.2

            	
              Conditions
      to Each Extension of Credit 

            	
              39

            

    

     

    SECTION
6.

     

    AFFIRMATIVE
COVENANTS

     

    
      	
              6.1

            	
              Financial
      Statements 

            	
              39

            

    

    
      	
              6.2

            	
              Certificates;
      Other Information 

            	
              40

            

    

    
      	
              6.3

            	
              Payment
      of Obligations 

            	
              41

            

    

    
      	
              6.4

            	
              Maintenance
      of Existence; Compliance 

            	
              41

            

    

    
      	
              6.5

            	
              Maintenance
      of Property; Insurance 

            	
              41

            

    

    
      	
              6.6

            	
              Inspection
      of Property; Books and Records; Discussions 

            	
              41

            

    

    
      	
              6.7

            	
              Notices 

            	
              42

            

    

    
      	
              6.8

            	
              Environmental
      Laws. 

            	
              42

            

    

    
      	
              6.9

            	
              Maintenance
      of Ownership 

            	
              42

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
7.

     

    NEGATIVE
COVENANTS

     

    
      	
              7.1

            	
              Financial
      Condition Covenant 

            	
              43

            

    

    
      	
              7.2

            	
              Liens 

            	
              43

            

    

    
      	
              7.3

            	
              Fundamental
      Changes 

            	
              44

            

    

    
      	
              7.4

            	
              Disposition
      of Property 

            	
              45

            

    

    
      	
              7.5

            	
              Restricted
      Payments 

            	
              45

            

    

    
      	
              7.6

            	
              Intentionally
      Omitted. 

            	
              45

            

    

    
      	
              7.7

            	
              Investments 

            	
              45

            

    

    
      	
              7.8

            	
              Negative
      Pledge Clauses 

            	
              46

            

    

    
      	
              7.9

            	
              Clauses
      Restricting Subsidiary Distributions 

            	
              46

            

    

    
      	
              7.10

            	
              Lines
      of Business and Hedge Activities 

            	
              46

            

    

    
      	
              7.11

            	
              Designation
      of Subsidiaries 

            	
              47

            

    

     

    SECTION
8.

     

    EVENTS
OF DEFAULT

     

     

    SECTION
9.

     

    THE
AGENTS

     

    
      	
              9.1

            	
              Appointment 

            	
              50

            

    

    
      	
              9.2

            	
              Delegation
      of Duties 

            	
              50

            

    

    
      	
              9.3

            	
              Exculpatory
      Provisions 

            	
              50

            

    

    
      	
              9.4

            	
              Reliance
      by Administrative Agent 

            	
              51

            

    

    
      	
              9.5

            	
              Notice
      of Default 

            	
              52

            

    

    
      	
              9.6

            	
              Non
      Reliance on Agents and Other Lenders 

            	
              52

            

    

    
      	
              9.7

            	
              Indemnification 

            	
              52

            

    

    
      	
              9.8

            	
              Agent
      in Its Individual Capacity 

            	
              53

            

    

    
      	
              9.9

            	
              Successor
      Administrative Agent 

            	
              53

            

    

    
      	
              9.10

            	
              Co-Syndication
      Agents 

            	
              53

            

    

    
      	
              9.11

            	
              Issuing
      Lender 

            	
              53

            

    

     

    SECTION
10.

     

    MISCELLANEOUS

     

    
      	
              10.1

            	
              Amendments
      and Waivers 

            	
              54

            

    

    
      	
              10.2

            	
              Notices 

            	
              54

            

    

    
      	
              10.3

            	
              No
      Waiver; Cumulative Remedies 

            	
              56

            

    

    
      	
              10.4

            	
              Survival
      of Representations and Warranties 

            	
              56

            

    

    
      	
              10.5

            	
              Payment
      of Expenses and Taxes 

            	
              56

            

    

    
      	
              10.6

            	
              Successors
      and Assigns; Participations and Assignments. 

            	
              57

            

    

    
      	
              10.7

            	
              Adjustments;
      Set off. 

            	
              60

            

    

    
      	
              10.8

            	
              Counterparts 

            	
              60

            

    

    
      	
              10.9

            	
              Severability 

            	
              60

            
	

              10.10

            	Integration	
               61

            
	10.11	GOVERNING
      LAW	
               61

            
	10.12	Submission
      to Jurisdiction; Waivers	
               61

            
	10.13	Acknowledgements	
               62

            
	10.14	Confidentiality	
               62

            
	10.15	WAIVERS
      OF JURY TRIAL	
               62

            
	10.16	USA
      Patriot Act Notice	
               63

            
	10.17	No
      Fiduciary Duty	
               63

            

    

    
    

    
    

    
    

    
    

    
    

    
    

    
    

    
    

    

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Schedules:

     

    
      	
              Schedule
      1.1

            	
              -

            	
              Revolving
      Commitments

            

    

    
      	
              Schedule
      4.14

            	
              -

            	
              Subsidiaries

            

    

    
      	
              Schedule
      4.16

            	
              -

            	
              Environmental
      Matters

            

    

    
      	
              Schedule
      7.2(i)

            	
              -

            	
              Existing
      Liens

            

    

    
      	
              Schedule
      7.8

            	
              -

            	
              Agreements
      Prohibiting or Limiting Liens

            

    

     

    
      	
              Exhibits:

            	
               

            

    

     

    
      	
              Exhibit
      A

            	
              -

            	
                    
                Form
      of Guarantee Agreement

              

            

      
        	
                Exhibit
      B

              	
                -

              	
                      
                  Form
      of Compliance
Certificate

                

              

      

      
        	
                Exhibit
      C

              	
                -

              	
                      
                  Form
      of Closing Certificate

                

              

      

      
        	
                Exhibit
      D

              	
                -

              	
                      
                  Form
      of Assignment and
Acceptance

                

              

      

      
        	
                Exhibit
      E-1  

              	
                -

              	
                      
                  Form
      of Kilpatrick Stock LLP legal opinion

                

              
	Exhibit
      E-2	-	      
                      
                  Form
      of Woodburn and Wedge legal opinion

                

              
	Exhibit
      F	-	      
                Form
      of Exemption
Certificate

              

      

    

     

    
    

    
    

    
    

    
    

    
    

    
    

    
    

    

    
      
        
           

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    CREDIT
AGREEMENT (this “Agreement”), dated as
of September 30, 2008, among AGL RESOURCES INC., a Georgia corporation (“Holdings”), AGL
CAPITAL CORPORATION, a Nevada corporation (the “Borrower”), the
several banks and other financial institutions or entities from time to time
parties to this Agreement (the “Lenders”), WACHOVIA
BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, the
“Administrative
Agent”) and as issuer of any letters of credit issued pursuant to this
Agreement (in such capacity, the “Issuing Lender”), and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, CALYON NEW YORK BRANCH,
THE ROYAL BANK OF SCOTLAND PLC, and SUNTRUST BANK, as co-syndication agents (in
such capacities, the “Co-Syndication
Agents”).

     

    W I T N E S S E T
H:

     

    WHEREAS, the Borrower has
requested that the Lenders establish a $140,000,000 revolving credit facility in
favor of the Borrower; and

     

    WHEREAS, subject to the terms
and conditions of this Agreement, the Lenders, to the extent of their respective
Commitments as defined herein, are willing severally to establish the requested
revolving credit facility in favor of the Borrower;

     

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the
Borrower, the Lenders and the Administrative Agent agree as
follows:

     

     

                                    
SECTION
1.                                

     

    DEFINITIONS

     

    1.1 Defined
Terms

     

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

     

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

     

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

     

    
      
        
           

        

         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    “Administrative
Agent”:  Wachovia Bank, National Association, as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

     

    “Affiliate”:  as
to any Person, any other Person that, directly or indirectly, is in Control of,
is Controlled by, or is under common Control with, such Person.  For
purposes of this definition, “Control” means the power to direct or to cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or
otherwise.  Notwithstanding the foregoing, neither the Administrative
Agent nor any Lender shall be deemed an “Affiliate” of any Group
Member.

     

    “Agents”:  the
collective reference to the Administrative Agent and the Co-Syndication
Agents.

     

    “Aggregate
Exposure”:  with respect to any Lender at any time, an amount
equal to (a) until the Closing Date, the aggregate amount of such Lender’s
Revolving Commitment at such time and (b) thereafter, the amount of such
Lender’s Revolving Commitment then in effect or, if the Revolving Commitments
have expired or been terminated, the amount of such Lender’s Revolving
Extensions of Credit then outstanding.

     

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

     

    “Agreement”:  as
defined in the preamble hereto.

     

    “Applicable
Margin”:  for each Type of Loan outstanding on any day, the
rate per annum set forth below opposite the Level in effect on such
day:

     

    
      	
              Level

            	
              ABR Loans

            	
              Eurodollar Loans

            
	
              Level
      I

            	
              0.000%

            	
              0.480%

            
	
              Level
      II

            	
              0.000%

            	
              0.570%

            
	
              Level
      III

            	
              0.000%

            	
              0.650%

            
	
              Level
      IV

            	
              0.000%

            	
              0.750%

            
	
              Level
      V

            	
              0.000%

            	
              0.975%

            
	
              Level
      VI

            	
              0.300%

            	
              1.300%

            

    

    

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

     

    “Approved
Fund”:  any Person (other than a natural Person) that is (or
will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business and that is administered or managed by (i) a Lender, (ii) an
Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that
administers or manages a Lender.

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Assets”:  with
respect to any Person, all or any part of its business, property and assets
wherever situated.

     

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

     

    “Assignment and
Acceptance”:  an Assignment and Acceptance, substantially in
the form of Exhibit D.

     

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

     

    “Available Revolving
Commitments”:  at any time, an amount equal to (a) the Total
Revolving Commitments then in effect, minus (b) the Total
Revolving Extensions of Credit then outstanding.

     

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

     

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

     

    “Borrower”:  as
defined in the preamble hereto.

     

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

     

    “Business”:  as
defined in Section 4.16(b).

     

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

     

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

     

    “Cash
Equivalents”:  (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition; (b)
certificates of deposit, time deposits, eurodollar time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any Lender or by any commercial bank organized under the
laws of the United States or any state thereof having combined capital and
surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of commercial paper issuers generally, and maturing
within six months from the date of acquisition; (d) repurchase obligations of
any Lender or of any commercial bank satisfying the requirements of clause (b)
of this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States
government; (e) securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory
of the United States, by any political subdivision or taxing authority of any
such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least A
by S&P or A2 by Moody’s; (f) securities with maturities of six months or
less from the date of acquisition backed by standby letters of credit issued by
any Lender or any commercial bank satisfying the requirements of clause (b) of
this definition; or (g) shares of money market mutual or similar funds which
invest exclusively in assets satisfying the requirements of clauses (a) through
(f) of this definition.

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Closing
Date”:  the date of this Agreement as set forth in the first
paragraph of this Agreement.

     

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

     

    “Co-Syndication
Agents”:  as defined in the preamble hereto.

     

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

     

    “Compliance
Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit B.

     

    “Conduit
Lender”:  any special purpose corporation organized and
administered by any Lender for the purpose of making Loans otherwise required to
be made by such Lender and designated by such Lender in a written instrument,
subject to the consent of the Administrative Agent and the Borrower (which
consent shall not be unreasonably withheld or delayed); provided, that the
designation by any Lender of a Conduit Lender shall not relieve the designating
Lender of any of its obligations to fund a Loan or purchase participations in
Letters of Credit under this Agreement if, for any reason, its Conduit Lender
fails to fund any such Loan or purchase such participations in Letters of
Credit, and the designating Lender (and not the Conduit Lender) shall have the
sole right and responsibility to deliver all consents, amendments and waivers
required or requested under this Agreement with respect to its Conduit Lender,
and provided,
further, that
no Conduit Lender shall (a) be entitled to receive any greater amount pursuant
to Section 2.14, 2.15, 2.16 or 10.5 than the designating
Lender would have been entitled to receive in respect of the extensions of
credit made by such Conduit Lender or (b) be deemed to have any Revolving
Commitment.

     

    “Confidential Information
Memorandum”:  the Confidential Information Memorandum dated
September 2008 and furnished to the Lenders.

     

    “Consolidated Net
Worth”:  at any date, the aggregate amount of Capital Stock,
minority interests, and other equity accounts (including, without limitation,
retained earnings, paid in capital and accumulated other comprehensive income or
loss (but without giving effect to any non-cash pension and other
post-retirement benefits liability adjustments recorded in accordance with
GAAP)) of Holdings and the other Group Members at such date determined on a
consolidated basis in accordance with GAAP.

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Consolidated Total
Debt”:  at any date, the aggregate principal amount of all
Indebtedness of Holdings and the other Group Members at such date (excluding
Indebtedness of the type described in clause (k) of the definition of the term
Indebtedness), determined on a consolidated basis in accordance with
GAAP.

     

    “Continuing
Directors”:  the directors of Holdings on August 31, 2006 and
each other director, if, in each case, such other director’s nomination for
election to the board of directors of Holdings is recommended by at least a
majority of the then Continuing Directors.

     

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

     

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

     

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

     

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

     

    “Eligible
Assignee”:  (i) a Lender; (ii) an Affiliate of a Lender; (iii)
an Approved Fund; and (iv) any other Person (other than a natural Person)
approved by the Administrative Agent, the Issuing Lender (each such approval not
to be unreasonably withheld or delayed), and unless (x) such Person is taking
delivery of an assignment in connection with physical settlement of a credit
derivatives transaction or (y) an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or
delayed).  If the consent of the Borrower to an assignment or to an
Eligible Assignee is required hereunder, the Borrower shall be deemed to have
given its consent ten Business Days after the date notice thereof has actually
been delivered by the assigning Lender (through the Administrative Agent) to the
Borrower, unless such consent is expressly refused by the Borrower prior to such
tenth Business Day.

     

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

     

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

     

    “Eurocurrency Reserve
Requirements”:  for any day as applied to a Eurodollar Loan,
the maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    “Eurodollar Base
Rate”:  with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, the rate per annum determined on the basis of
the rate for deposits in Dollars for a period equal to such Interest Period
commencing on the first day of such Interest Period appearing on Reuters Screen
LIBOR01 Page (or any successor page) as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period.  In the event
that such rate does not appear on Reuters Screen LIBOR01 Page (or any successor
page), the “Eurodollar
Base Rate” shall be determined by reference to such other comparable
publicly available service for displaying eurodollar rates as may be selected by
the Administrative Agent or, in the absence of such availability, by reference
to the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., Charlotte time, two Business Days prior to the beginning of
such Interest Period in the interbank eurodollar market where its eurodollar and
foreign currency and exchange operations are then being conducted for delivery
on the first day of such Interest Period for the number of days comprised
therein.

     

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

     

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

     

                      Eurodollar
Base
Rate                 

    1.00 -
Eurocurrency Reserve Requirements

     

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

     

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

     

    “Facility”:  the
Revolving Commitments and the extensions of credit made thereunder.

     

    “Facility Fee
Rate”:  for each day during each quarterly calculation period,
a rate per annum set forth below opposite the Level in effect on such
day:

     

    
      	
              Level

            	
              Facility Fee Rate

            
	
              Level
      I

            	
              0.070%

            
	
              Level
      II

            	
              0.080%

            
	
              Level
      III

            	
              0.100%

            
	
              Level
      IV

            	
              0.125%

            
	
              Level
      V

            	
              0.150%

            
	
              Level
      VI

            	
              0.200%

            

    

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

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

     

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

     

    “GAAP”:  those
accounting principles, standards and practices generally accepted in the United
States as in effect from time to time.

     

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

     

    “Group
Members”:  the collective reference to Holdings, the Borrower
and their respective Restricted Subsidiaries.

     

    “Guarantee
Agreement”:  the Guarantee Agreement to be executed and
delivered by Holdings, substantially in the form of Exhibit A.

     

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

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Guarantor”:  Holdings.

     

    “Hedge
Agreements”:  all interest rate swaps, caps or collar
agreements or similar arrangements dealing with interest rates or currency
exchange rates or the exchange of nominal interest obligations, either generally
or under specific contingencies, and all commodity price protection agreements,
or any other hedging arrangements.

     

    “Holdings”:  as
defined in the preamble hereto.

     

    “Hybrid
Securities”:  any trust preferred securities, or deferrable
interest subordinated debt with a maturity of at least 20 years, which provides
for the optional or mandatory deferral of interest or distributions, issued by
Holdings or the Borrower, or any business trusts, limited liability companies,
limited partnerships or similar entities (i) substantially all of the common
equity, general partner or similar interests of which are owned (either directly
or indirectly through one or more wholly owned Subsidiaries) at all times by
Holdings or the Borrower or any Subsidiaries, (ii) that have been formed for the
purpose of issuing such securities or deferrable interest subordinated debt, and
(iii) substantially all the assets of which consist of (A) subordinated debt of
Holdings or the Borrower or any Subsidiary, and (B) payments made from time to
time on the subordinated debt.

     

    “Indebtedness”:  of
any Person at any date, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred
purchase price of property or services (other than trade payables incurred in
the ordinary course of such Person’s business that are not more than 90 days
past due unless being contested in good faith and for which any reserves
required by GAAP have been provided), (c) all obligations of such Person
evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property),
(e) all capital lease (within the meaning of GAAP) obligations of such
Person, (f) all Securitization Facility Attributed Debt, (g) all
obligations of such Person, contingent or otherwise, as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds or
similar arrangements, (h) the liquidation value of all mandatorily redeemable
preferred Capital Stock of such Person, (i) all Guarantee Obligations of such
Person in respect of obligations of the kind referred to in clauses (a) through
(h) above, (j) all obligations of the kind referred to in clauses (a) through
(i) above secured by (or for which the holder of such obligation has an existing
right, contingent or otherwise, to be secured by) any Lien on property
(including accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation, (k)
all obligations of such Person in respect of Hedge Agreements and (l) all
Off-Balance Sheet Liabilities.  The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which
such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness expressly
provide that such Person is not liable therefor.  Notwithstanding the
foregoing, obligations of any Person with respect to Park and Loan Transactions
shall not be considered Indebtedness.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

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

     

    “Intellectual
Property”:  the collective reference to all rights, priorities
and privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including copyrights,
copyright licenses, patents, patent licenses, trademarks, trademark licenses,
technology, know-how and processes, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.

     

    “Interest Payment
Date”:  (a) as to any Revolving Loan that is an ABR Loan, the
last day of each March, June, September and December to occur while such Loan is
outstanding commencing on December 31, 2008 and the final maturity date of such
Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or
less, the last day of such Interest Period, (c) as to any Eurodollar Loan having
an Interest Period longer than three months, each day that is three months, or a
whole multiple thereof, after the first day of such Interest Period and the last
day of such Interest Period, and (d) as to any Loan (excluding any
Revolving Loan that is an ABR Loan), the date of any repayment or prepayment
made or required to be made in respect thereof.

     

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

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

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

     

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

     

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

     

    “Investments”:  as
defined in Section 7.7.

     

    “Issuing
Lender”:  Wachovia Bank, National Association in its capacity
as issuer of any Letter of Credit, or any other Lender approved by the
Administrative Agent (such approval not to be unreasonably
withheld).

     

    “L/C Commitment”: at
any time, an amount equal to $10,000,000.

     

    “L/C Fee Payment
Date”:  the last day of each March, June, September and
December commencing on December 31, 2008 and the last day of the Revolving
Commitment Period.

     

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

     

    “L/C
Participants”:  the collective reference to all the Lenders
other than the Issuing Lender.

     

    “Lender
Affiliate”:  (a) any Affiliate of any Lender, (b) any Person
that is administered or managed by any Lender and that is engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business and (c) with respect
to any Lender which is a fund that invests in commercial loans and similar
extensions of credit, any other fund that invests in commercial loans and
similar extensions of credit and is managed or advised by the same investment
advisor as such Lender or by an Affiliate of such Lender or investment
advisor.

     

    “Lenders”:  as
defined in the preamble hereto; provided, that unless
the context otherwise requires, each reference herein to the Lenders shall be
deemed to include the Issuing Lender and any Conduit Lender.

     

    “Letters of
Credit”:  as defined in Section 3.1(a).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    “Level I”, “Level II”, “Level III”, “Level IV”, “Level V” and “Level
VI”:  the respective Level set forth below:

     

    
      	 
      	
              
                S&P
      Rating

              

            	
              
                Moody’s
      Rating

              

            
	
              Level
      I

            	
              A
      or higher

            	
              A2
      or higher

            
	
              Level
      II

            	
              A-

            	
              A3

            
	
              Level
      III

            	
              BBB+

            	
              Baa1

            
	
              Level
      IV

            	
              BBB

            	
              Baa2

            
	
              Level
      V

            	
              BBB-

            	
              Baa3

            
	
              Level
      VI

            	
              BB+
      or below

            	
              Ba1
      or below

            

    

    

    provided that if on
any day the Ratings of the Rating Agencies do not coincide for any rating
category and the Level differential is (a) one level, then the higher Rating
will be the applicable Level; (b) two levels, the Level at the midpoint will be
the applicable Level; (c) more than two levels, the higher of the intermediate
Levels will be the applicable Level; (d) if the Borrower has only one Rating,
the Level of such Rating shall apply; and (e) if neither the Borrower nor
Holdings has a Rating, Level VI shall apply.

     

    “Lien”:  any
mortgage, pledge, lien, hypothecation, security interest or other charge,
encumbrance, or other arrangement in the nature of a security interest in
property to secure the payment or performance of Indebtedness or other
obligations of any Person; provided, however, the term
“Lien” shall not mean any easements, rights-of-way, zoning restrictions, leases,
sub-leases, licenses, sublicenses, other restrictions on the use of property,
defects in title to property or other similar encumbrances.

     

    “Loan”:  any
loan made by any Lender pursuant to this Agreement.

     

    “Loan
Documents”:  this Agreement, the Guarantee Agreement, the
Letters of Credit, the Applications, the Specified Hedge Agreements, if any, and
the Notes.

     

    “Loan
Parties”:  the Borrower and the Guarantor.

     

    “Material Adverse
Effect”:  a material adverse effect on (a) the business,
property, operations or condition (financial or otherwise) of Holdings and its
Subsidiaries taken as a whole or (b) the validity or enforceability of this
Agreement or any of the other Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders hereunder or thereunder.

     

    “Materials of Environmental
Concern”:  any gasoline or petroleum (including crude oil or
any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes, defined or regulated as such in or under any
Environmental Law, including asbestos, polychlorinated biphenyls and
urea-formaldehyde insulation.

     

    “Moody’s”:  Moody’s
Investor Service, Inc.

     

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

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “Non-Excluded
Taxes”:  as defined in Section 2.15(a).

     

    “Non-U.S.
Lender”:  as defined in Section 2.15(d).

     

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

     

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

     

    “Off-Balance Sheet
Liabilities”:  as to any Person (i) any repurchase obligation
or liability of such Person with respect to notes or accounts receivable sold by
such Person, (ii) any liability of such Person under any sale and leaseback
transactions that do not create a liability on the balance sheet of such Person,
(iii) any liability of such Person under any so-called “synthetic” lease
transaction and (iv) any obligation under any other transaction which is the
functional equivalent of, or takes the place of, a borrowing but which does not
constitute a liability on the balance sheet of such Person.

     

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

     

    “Park and Loan
Transactions”:  any tariff transaction offered by pipelines or
other storage facilities, where the pipelines or other storage facilities allow
the customers to park gas on or borrow gas from the pipelines or other storage
facilities in one period and reclaim gas from or repay gas to the pipelines or
other storage facilities in a subsequent period.

     

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

     

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

     

    “Permitted
Acquisitions”:  as defined in Section 7.7(e).

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “Person”:  an
individual, company, corporation, firm, partnership, joint venture, undertaking,
association, organization, trust, state or agency of a state (in each case
whether or not having a separate legal personality).

     

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

     

    “Properties”:  as
defined in Section 4.16(a).

     

    “Rating Agencies”:
collectively, S&P and Moody’s.

     

    “Ratings”:  the
ratings of the Rating Agencies applicable to the long-term, non-credit enhanced
senior unsecured debt of the Borrower or, if no such ratings then exist for such
debt of the Borrower, the long-term non-credit enhanced senior unsecured debt of
Holdings, in each case as announced by the Rating Agencies.

     

    “Recovery
Event”:  any settlement of or payment in respect of any
property or casualty insurance claim or any condemnation proceeding relating to
any asset of any Group Member.

     

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

     

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

     

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

     

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

     

    “Reportable
Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived under Sections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg.
§ 4043.

     

    “Required
Lenders”:  at any time, the holders of more than 50% of (a)
until the Closing Date, the Revolving Commitments then in effect and (b)
thereafter, the Total Revolving Commitments then in effect or, if the Revolving
Commitments have expired or been terminated, the Total Revolving Extensions of
Credit then outstanding.

     

    “Requirement of
Law”:  as to any Person, the articles or certificate of
incorporation or organization, by laws, partnership agreement, limited liability
company agreement, operating agreement, management agreement, or other
organizational or governing documents of such Person, and any constitution,
decree, judgment, legislation, order, ordinance, regulation, rule, statute or
treaty, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    “Responsible
Officer”:  the chief executive officer, president, chief
financial officer, treasurer or controller of Holdings or the Borrower, as the
case may be, but in any event, with respect to financial matters, the chief
financial officer or treasurer of Holdings.

     

    “Restricted
Payments”:  as defined in Section 7.5.

     

    “Restricted
Subsidiary”:  any Subsidiary other than an Unrestricted
Subsidiary.

     

    “Revolving
Commitment”:  as to any Lender, the obligation of such Lender,
if any, to make Revolving Loans and to purchase participations in Letters of
Credit in an aggregate principal and/or face amount not to exceed the amount set
forth under the heading “Revolving Commitment” opposite such Lender’s name on
Schedule 1.1 or in the
Assignment and Acceptance pursuant to which such Lender became a party hereto,
as the same may be increased pursuant to Section 2.20 or otherwise
changed from time to time pursuant to the terms hereof.

     

    “Revolving Commitment
Period”:  the period from and including the Closing Date to the
Revolving Termination Date.

     

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

     

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

     

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

     

    “Revolving Termination
Date”:  the earlier of:  (i) September 29, 2009, and
(ii) the date of any termination of the Revolving Commitments pursuant to Section 2.5 or Section 8.

     

    “SEC”:  the
Securities and Exchange Commission, any successor thereto and any analogous
Governmental Authority.

     

    “Securitization Facility
Attributed Debt”:  at any time, the aggregate net outstanding
amount theretofore paid to any of the Group Members (without duplication) in
respect of securitization assets (whether accounts receivable, general
intangibles, instruments, documents, chattel paper or other similar assets) sold
or transferred in connection with any securitization financing program
established by any of the Group Members in respect of such securitization assets
(it being the intent of the parties that such Securitization Facility Attributed
Debt at any time outstanding approximate as closely as possible the principal
amount of Indebtedness that would be outstanding at such time under such
financing program if the same were structured as a secured lending arrangement
rather than a sale or securitization arrangement).

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

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

     

    “S&P”:  Standard
& Poor’s Rating Service, a division of the McGraw Hill Companies,
Inc.

     

    “Solvent”:  when
used with respect to any Person, means that, as of any date of determination,
(a) the sum of the assets of such Person (both at fair value and present fair
saleable value) will, as of such date, exceed the sum of the liabilities of such
Person as of such date, (b) such Person will be able to pay its debts as they
mature and (c) such Person has sufficient capital to conduct its
business.  For purposes of this definition, (i) “debt” means liability
on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not
such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal equitable, secured
or unsecured or (y) right to an equitable remedy for breach of performance
if such breach gives rise to a right to payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured or
unmatured, disputed, undisputed, secured or unsecured.

     

    “Specified Hedge
Agreement”:  any Hedge Agreement (a) entered into by the
Borrower and any Lender or Lender Affiliate and (b) that has been designated by
the relevant Lender and the Borrower, by written notice to the Administrative
Agent, as a Specified Hedge Agreement.

     

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

     

    “Total
Capitalization”:  at any date, the sum of Consolidated Net
Worth and Consolidated Total Debt of the Group Members at such date, determined
on a consolidated basis in accordance with GAAP.

     

    “Total Revolving
Commitments”:  at any time, the aggregate amount of the
Revolving Commitments then in effect.  The Total Revolving Commitments
as of the Closing Date is $140,000,000.

     

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

     

    “Transferee”:  any
Assignee or Participant.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

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

     

    “United
States”:  the United States of America.

     

    “Unrestricted
Subsidiary”: any Subsidiary which (i) is designated as an Unrestricted
Subsidiary in accordance with Section 7.11, and (ii) has not
incurred any Indebtedness that is guaranteed or otherwise supported by the
credit of Holdings, the Borrower or any other of their respective Restricted
Subsidiaries (but excluding any such guarantee or other credit support
arrangement pursuant to which the liability of such guarantor or credit support
provider is limited to loan amounts advanced by another Person against inventory
claimed (by rights or claims of offset, ownership or similar claim) by such
guarantor or credit support provider, and such guarantor or credit support
provider is entitled to receive a pro rata interest in such inventory
corresponding to the amounts paid in respect of such inventory).

     

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

     

    1.2 Other Definitional
Provisions.

     

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

     

    (b) As used
herein and in the other Loan Documents, and any certificate or other document
made or delivered pursuant hereto or thereto, (i) accounting terms relating to
any Group Member not defined in Section 1.1 and accounting terms
partly defined in Section
1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP; provided, however, that for
purposes of determining compliance with the covenants contained in Section 7, all accounting
terms herein shall be interpreted and all accounting determinations hereunder
shall be made in accordance with GAAP as in effect on the date of this Agreement
and applied on a basis consistent with the application used in the financial
statements referred to in Section 4.1, (ii) the words
“include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”, (iii) the word “incur” shall be construed to mean
incur, create, issue, assume, become liable in respect of or suffer to exist
(and the words “incurred” and “incurrence” shall have correlative meanings),
(iv) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, Capital Stock, securities, revenues, accounts,
leasehold interests and contract rights, and (v) references to agreements or
other Contractual Obligations shall, unless otherwise specified, be deemed to
refer to such agreements or Contractual Obligations as amended, supplemented,
restated or otherwise modified from time to time.

     

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

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

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

     

     

                                                   
SECTION
2.                                

     

    AMOUNT AND TERMS OF
COMMITMENTS

     

    2.1 Revolving
Commitments.

     

    (a) Subject
to the terms and conditions hereof, each Lender severally agrees to make
revolving credit loans (“Revolving Loans”) to
the Borrower from time to time during the Revolving Commitment Period in an
aggregate principal amount at any one time outstanding which, when added to such
Lender’s Revolving Percentage of the sum of the L/C Obligations then
outstanding, does not exceed the amount of such Lender’s Revolving
Commitment.  During the Revolving Commitment Period, the Borrower may
use the Revolving Commitments by borrowing, prepaying the Revolving Loans in
whole or in part, and reborrowing, all in accordance with the terms and
conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 2.2 and 2.8.

     

    (b) Notwithstanding
the foregoing, no Lender shall be obligated to make a Revolving Loan hereunder
if the aggregate principal amount at any one time outstanding of such Lender’s
Revolving Percentage of the Total Revolving Extensions of Credit exceeds such
Lender’s Revolving Commitment.

     

    (c) The
obligations of the Lenders hereunder to make Loans, to fund participations in
Letters of Credit and to make payments pursuant to Section 9.7 are several and not
joint.  The failure of any Lender to make any Loan, to fund any such
participation or to make any such payment on any date shall not relieve any
other Lender of its corresponding obligation, if any, hereunder to do so on such
date, but no Lender shall be responsible for the failure of any other Lender to
so make its Loan, purchase its participation or to make any such payment
required hereunder.

     

    (d) The
Borrower shall repay all outstanding Revolving Loans on the Revolving
Termination Date.

     

    2.2 Procedure for Revolving Loan
Borrowing.  

     

    The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the
Borrower shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 11:00 a.m., Charlotte
time, (a) three Business Days prior to the requested Borrowing Date, in the case
of Eurodollar Loans, or (b) on the requested Borrowing Date, in the case of ABR
Loans), specifying (i) the amount and Type of Revolving Loans to be borrowed,
(ii) the requested Borrowing Date and (iii) in the case of Eurodollar Loans, the
respective lengths of the initial Interest Period therefor.  Each
borrowing under the Revolving Commitments shall be in an amount equal to (x) in
the case of ABR Loans, $1,000,000 or a whole multiple of $100,000 in excess
thereof, and (y) in the case of Eurodollar Loans, $5,000,000 or a whole multiple
of $1,000,000 in excess thereof.  Upon receipt of any such notice from
the Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the amount of its Revolving Percentage
of each borrowing available to the Administrative Agent for the account of the
Borrower (or, with respect to Section 3.5, the Issuing Lender)
at the Funding Office prior to 1:00 p.m., Charlotte time, on the Borrowing Date
requested by or on behalf of the Borrower in funds immediately available to the
Administrative Agent.  Such borrowing will then be made available to
the Borrower (or, with respect to Section 3.5, the Issuing Lender)
by the Administrative Agent crediting the account of the Borrower (or, with
respect to Section 3.5, the Issuing Lender)
on the books of such Funding Office with the aggregate of the amounts made
available to the Administrative Agent by the Lenders and in like funds as
received by the Administrative Agent or, at the Borrower’s (or, with respect to
Section 3.5, the Issuing Lender’s)
option, by effecting a wire transfer of such amounts to an account designated by
the Borrower (or, with respect to Section 3.5, the Issuing Lender)
to the Administrative Agent.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    2.3 Evidence of
Debt.

     

    (a) Each
Lender shall maintain in accordance with its usual practice appropriate records
evidencing indebtedness of the Borrower to such Lender resulting from each Loan
of such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time in respect of such
Loans.  The Administrative Agent shall maintain the Register pursuant
to Section 10.6(d), and a record
therein for each Lender, in which shall be recorded (i) the amount of each Loan
made by such Lender, the interest rate applicable thereto and each Interest
Payment Date applicable thereto, and (ii) the amount of any sum received by the
Administrative Agent hereunder from the Borrower on account of such
Loan.  The entries made in the Register and the records of each Lender
maintained pursuant to this Section 2.3 shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such record, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Loans made by
such Lender in accordance with the terms of this Agreement.

     

    (b) At the
request of any Lender at any time, the Borrower agrees that it will execute and
deliver to such Lender a Note evidencing the Revolving Loans of such Lender,
payable to the order of such Lender.

     

    2.4 Facility Fees,
etc.

     

    (a) The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender a facility fee for the period from and including the date hereof to the
Revolving Termination Date, computed at the Facility Fee Rate on the average
daily amount of the Revolving Commitment of such Lender in effect (whether or
not then being used) during the period for which payment is made, payable
quarterly in arrears on the last day of each March, June, September and December
and on the Revolving Termination Date, commencing on December 31,
2008.

     

    
      
         

      

      
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    (b) The
Borrower agrees to pay to the Administrative Agent the fees in the amounts and
on the dates previously agreed to in writing by the Borrower and the
Administrative Agent.

     

    2.5 Termination or Reduction of
Revolving Commitments.  

     

    The
Borrower shall have the right, upon not less than three Business Days’ notice to
the Administrative Agent, to terminate the Revolving Commitments or, from time
to time, to reduce the amount of the Revolving Commitments; provided that no such
termination or reduction of Revolving Commitments shall be permitted if, after
giving effect thereto and to any prepayments of the Loans made on the effective
date thereof pursuant to Section 2.7, the Total Revolving
Extensions of Credit would exceed the Total Revolving
Commitments.  Any such reduction shall be in an amount equal to
$10,000,000, or an integral multiple of $1,000,000 in excess thereof, and shall
reduce permanently the Revolving Commitments then in effect.

     

    2.6 Optional
Prepayments.  

     

    The
Borrower may at any time and from time to time prepay the Loans, in whole or in
part, without premium or penalty, upon irrevocable notice delivered to the
Administrative Agent at least three Business Days prior thereto in the case of
Eurodollar Loans and no later than 11:00 a.m., Charlotte time, on the date of
such prepayment in the case of ABR Loans, which notice shall specify the date
and amount of prepayment and whether the prepayment is of Eurodollar Loans or
ABR Loans; provided, that if a
Eurodollar Loan is prepaid on any day other than the last day of the Interest
Period applicable thereto, the Borrower shall also pay any amounts owing
pursuant to Section 2.16.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein,
together with accrued interest to such date on the amount
prepaid.  Partial prepayments of the Loans shall be in an aggregate
principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof.

     

    2.7 Prepayments on Revolving
Commitment Reductions.  

     

    Any
reduction of the Revolving Commitments shall be accompanied by prepayment of the
Revolving Loans to the extent, if any, that the Total Revolving Extensions of
Credit would exceed the amount of the Total Revolving Commitments as so reduced,
provided that
if the aggregate principal amount of Revolving Loans then outstanding is less
than the amount of such excess (because L/C Obligations constitute a portion
thereof), the Borrower shall, to the extent of the balance of such excess,
replace outstanding Letters of Credit and/or deposit an amount in cash in a cash
collateral account established with the Administrative Agent for the benefit of
the Lenders on terms and conditions satisfactory to the Administrative
Agent.  The application of any prepayment pursuant to this Section 2.7 shall be made, first,
to ABR Loans and, second, to Eurodollar Loans.  Each prepayment of the
Loans under this Section
2.7 shall be accompanied
by accrued interest to the date of such prepayment on the amount
prepaid.

     

    2.8 Conversion and Continuation
Options.

     

    (a) The
Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by
giving the Administrative Agent at least two Business Days’ prior irrevocable
notice of such election, provided that any
such conversion of Eurodollar Loans may only be made on the last day of an
Interest Period with respect thereto.  The Borrower may elect from
time to time to convert ABR Loans to Eurodollar Loans by giving the
Administrative Agent at least three Business Days’ prior irrevocable notice of
such election (which notice shall specify the length of the initial Interest
Period therefor), provided that no ABR
Loan may be converted into a Eurodollar Loan when both (i) a Default or an Event
of Default has occurred and is continuing, and (ii) the Administrative Agent or
the Required Lenders have determined in its or their sole discretion not to
permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender
thereof.

     

    
      
         

      

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

     

    2.9 Limitations on Eurodollar
Tranches.  

     

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

     

    2.10 Interest Rates and Payment
Dates.

     

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

     

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

     

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

     

    
      
         

      

      
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    (d) Interest
in respect of all Revolving Loans shall be payable in arrears on each Interest
Payment Date.  Notwithstanding the foregoing, interest accruing
pursuant to paragraph (c) of this Section shall be payable from time to time on
demand.

     

    2.11 Computation of Interest and
Fees.

     

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

     

    (b) Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error.  The Administrative
Agent shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 2.10(a).

     

    2.12 Inability to Determine
Interest Rate.  

     

    If prior
to the first day of any Interest Period:

     

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

     

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

     

    
      
         

      

      
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    the
Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable
thereafter.  If such notice is given (x) any Eurodollar Loans
requested to be made on the first day of such Interest Period shall be made as
ABR Loans, (y) any Loans that were to have been converted on the first day
of such Interest Period to Eurodollar Loans shall be continued as ABR Loans and
(z) any outstanding Eurodollar Loans shall be converted, on the last day of the
then-current Interest Period, to ABR Loans.  Until such notice has
been withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Loans to Eurodollar Loans.  The Administrative Agent shall promptly
withdraw such notice when Eurodollar Loans are again available.

     

    2.13 Pro Rata Treatment and
Payments.

     

    (a) Each
borrowing by the Borrower from the Lenders hereunder, each payment by the
Borrower on account of any facility fee and any reduction of the Revolving
Commitments of the Lenders shall be made pro rata according to the
respective Revolving Commitments of the relevant Lenders.

     

    (b) Each
payment (including each prepayment) by the Borrower on account of principal of
and interest on the Loans shall be made pro rata according to the
respective outstanding principal amounts of the Loans then held by the
Lenders.

     

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

     

    (d) Unless
the Administrative Agent shall have been notified in writing by any Lender prior
to a borrowing that such Lender will not make the amount that would constitute
its share of such borrowing available to the Administrative Agent, the
Administrative Agent may assume that such Lender is making such amount available
to the Administrative Agent, and the Administrative Agent may, in reliance upon
such assumption, make available to the Borrower a corresponding
amount.  If such amount is not made available to the Administrative
Agent by the required time on the Borrowing Date therefor, such Lender shall pay
to the Administrative Agent, on demand, such amount with interest thereon at a
rate equal to the daily average Federal Funds Effective Rate for the period
until such Lender makes such amount immediately available to the Administrative
Agent.  A certificate of the Administrative Agent submitted to any
Lender with respect to any amounts owing under this paragraph shall be
conclusive in the absence of manifest error.  If such Lender’s share
of such borrowing is not made available to the Administrative Agent by such
Lender within three Business Days after such Borrowing Date, the Administrative
Agent shall also be entitled to recover such amount with interest thereon at the
rate per annum applicable to ABR Loans, on demand, from the
Borrower.

     

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

     

    
      
         

      

      
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    2.14 Requirements of
Law.

     

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

     

    (i) shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by
it, or change the basis of taxation of payments to such Lender in respect
thereof (except for Non-Excluded Taxes covered by Section 2.15 and changes in the
rate of tax on the overall net income of such Lender);

     

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

     

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

     

    and the
result of any of the foregoing is to increase the cost to such Lender, by an
amount that such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or issuing or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender,
upon its demand, any additional amounts necessary to compensate such Lender for
such increased cost or reduced amount receivable.  If any Lender
becomes entitled to claim any amounts pursuant to this paragraph, it shall
promptly notify the Borrower in writing (with a copy to the Administrative
Agent) of the event by reason of which it has become so entitled; provided that the
Borrower shall not be required to compensate a Lender pursuant to this paragraph
for any amounts incurred more than three months prior to the date that such
Lender notifies the Borrower of such Lender’s intention to claim compensation
therefor; and provided further that, if the
circumstances giving rise to such claim have a retroactive effect, then such
period for which the Borrower shall be required to compensate the Lenders shall
be extended to include the period of such retroactive effect.

     

    
      
         

      

      
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    (b) If any
Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether or
not having the force of law) from any Governmental Authority made subsequent to
the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit to a level below that
which such Lender or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by
such Lender to be material, then from time to time, after submission by such
Lender to the Borrower (with a copy to the Administrative Agent) of a written
request therefor, the Borrower shall pay to such Lender such additional amount
or amounts as will compensate such Lender or such corporation for such
reduction; provided that the
Borrower shall not be required to compensate a Lender pursuant to this paragraph
for any amounts incurred more than three months prior to the date that such
Lender notifies the Borrower of such Lender’s intention to claim compensation
therefor; and provided further that, if the
circumstances giving rise to such claim have a retroactive effect, then such
period for which the Borrower shall be required to compensate the Lenders shall
be extended to include the period of such retroactive effect

     

    (c) A
certificate as to any additional amounts payable pursuant to this Section
submitted by any Lender to the Borrower (with a copy to the Administrative
Agent) shall be conclusive in the absence of manifest error.  The
obligations of the Borrower pursuant to this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

     

    2.15 Taxes.

     

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

     

    
      
         

      

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

     

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

     

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

     

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

     

    
      
         

      

      
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    (f) The
agreements in this Section shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder and for a
period of one year after the indefeasible payment in full of all Obligations and
the termination of this Agreement and the other Loan Documents.

     

    2.16 Indemnity.  

     

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

     

    2.17 Change of Lending
Office.  

     

    Each
Lender agrees that, upon the occurrence of any event giving rise to the
operation of Section 2.14, 2.15(a) or 2.18 with respect to such
Lender, to the extent permitted by law, it will designate another lending office
for any Loans affected by such event with the object of avoiding the
consequences of such event; provided, that such
designation is made on terms that, in the sole judgment of such Lender, are not
disadvantageous to such Lender, and provided, further, that nothing in this
Section shall affect or postpone any of the obligations of the Borrower or the
rights of any Lender pursuant to Section 2.14, 2.15(a) or 2.18.

     

    2.18 Illegality.  

     

    If the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof or compliance by any Lender with any request or directive
(whether or not having the force of law) from any central bank or other
Governmental Authority made subsequent to the date hereof shall make it
unlawful, impossible or impracticable for any Lender to make, maintain or fund
any Eurodollar Loan and such Lender shall so notify the Administrative Agent and
the Borrower thereof (with supporting documentation) of such event, then such
Lender’s Revolving Commitment shall be suspended and, 30 days following such
notification, shall be canceled if such unlawfulness, impossibility or
impracticability shall then be continuing.  The Borrower shall prepay
such Lender’s Loans or convert such Eurodollar Loans to ABR Loans at the time or
times and to the extent necessary to avoid such unlawfulness, together with
unpaid accrued interest thereon, unpaid accrued fees and any other amounts due
and payable to such Lender, unless, in either case, prior thereto, the Borrower
shall have given notice to such Lender that the Borrower will require such
Lender to assign and transfer all of its interests in this Agreement pursuant to
Section 2.17 and shall have caused
such Lender to have so assigned and transferred such interests.

     

    
      
         

      

      
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    2.19 Replacement of
Lenders.  

     

    The
Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 2.14 or 2.15(a), (b) requires
relief pursuant to Section 2.18 or (c) refuses to consent to
certain proposed amendments, modifications, waivers, discharges or terminations
with respect to this Agreement that require the consent of all Lenders (or all
affected Lenders) pursuant to Section 10.1 and the same have
been approved by the Required Lenders, in each case with a replacement financial
institution; provided that (i)
such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) prior to any such replacement, such Lender shall have
taken no action under Section
2.17 so as to eliminate
the continued need for payment of amounts owing pursuant to Section 2.14 or 2.15(a) or relief pursuant
to Section 2.18, (iv) the replacement
financial institution shall purchase, at par, all Loans and other amounts owing
to such replaced Lender on or prior to the date of replacement, (v) the Borrower
shall be liable to such replaced Lender for any amounts owing under Section 2.16 if any Eurodollar
Loan owing to such replaced Lender shall be purchased other than on the last day
of the Interest Period relating thereto, (vi) the replacement financial
institution, if not already a Lender, shall be an Eligible Assignee, (vii) the
replaced Lender shall be obligated to make such replacement in accordance with
the provisions of Section
10.6 (provided that the
Borrower shall be obligated to pay the registration and processing fee referred
to therein), (viii) until such time as such replacement shall be consummated,
the Borrower shall pay to the Lender being replaced all additional amounts (if
any) required pursuant to Section 2.14 or 2.15(a), as the case may
be, and (ix) any such replacement shall not be deemed to be a waiver of any
rights that the Borrower, the Administrative Agent or any other Lender shall
have against the replaced Lender.  If any circumstances arise which
result, or such Lender becomes aware of any circumstances which are expected to
result, in the Borrower having to make such compensation or indemnification or
in it becoming illegal for such Lender to make, fund or maintain such Lender’s
Eurodollar Loans, such Lender shall use its commercially reasonable efforts to
notify the Borrower thereof and, in consultation with the Borrower, such Lender
shall take all steps, if any, it determines are reasonable and the Borrower
determines are acceptable to mitigate the effect of those circumstances;
provided that no delay or failure by any Lender to provide any such notice shall
affect the obligations of the Borrower hereunder.

     

    2.20 Increase in Revolving
Commitments.

     

    (a) Prior to
the Revolving Termination Date, the Borrower may submit to the Administrative
Agent the Borrower’s written request that the Revolving Commitments be increased
up to a total amount not to exceed on any such occasion $150,000,000 (the
requested amount on each such occasion being the “Maximum Revolving
Commitments”), and the Administrative Agent shall promptly give notice of
such request to each Lender (the “Revolving Commitment
Increase Notice”).  Within fifteen (15) Business Days after its
receipt from the Administrative Agent of a Revolving Commitment Increase Notice,
each Lender that desires to increase its Revolving Commitment in response to
such request (each such Lender, a “Consenting Lender”)
shall deliver written notice to the Administrative Agent of its election to
increase its Revolving Commitment and the maximum amount of such increase (for
each Consenting Lender, its “Additional Revolving
Commitment”), which may not be larger than the excess of (a) the Maximum
Revolving Commitments, over (b) the Revolving Commitments then in
effect.  The failure of any Lender to so notify the Administrative
Agent of its election and its Additional Revolving Commitment, if any, shall be
deemed to be a refusal by such Lender to increase its Revolving
Commitment.  If the sum of the Revolving Commitments then in effect
plus the aggregate Additional Revolving Commitments does not exceed the Maximum
Revolving Commitments, the Revolving Commitment of each Consenting Lender shall
be increased by its Additional Revolving Commitment as hereinafter
provided.  If the sum of the Revolving Commitments then in effect plus
the aggregate Additional Revolving Commitments exceeds the Maximum Revolving
Commitments, the Revolving Commitment of each Consenting Lender shall be
increased by an amount equal to the product of (i) such Consenting Lender’s
Additional Revolving Commitment multiplied by (ii) the quotient of (a) the
excess of (A) the Maximum Revolving Commitments, over (B) the Revolving
Commitments then in effect, divided by (b) the aggregate Additional Revolving
Commitments of all Consenting Lenders.  Any increase in the Revolving
Commitments shall be effective as of the date specified pursuant to Section 2.20(c), provided that the
Revolving Commitments may not at any time exceed the Maximum Revolving
Commitments.

     

    
      
         

      

      
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    (b) If the
sum of the Revolving Commitments then in effect plus the aggregate Additional
Revolving Commitments pursuant to Section 2.20(a) is less than the Maximum Revolving Commitments,
then the Borrower may obtain the remainder of the Maximum Revolving Commitment
from one or more new banks or other financial institutions acceptable to the
Borrower and the Administrative Agent (which acceptance shall not be
unreasonably withheld) (each a “New
Lender”).  Upon (i) the execution of a joinder agreement with
respect to this Agreement by such New Lender and acceptance thereof by the
Administrative Agent, (ii) the execution and delivery by the Borrower of any
Notes requested by the New Lender evidencing its Loans, and (iii) delivery of
notice to the Lenders by the Administrative Agent setting forth the effective
date of the addition of the New Lender(s) hereunder and the amount of such New
Lender(s)’ Revolving Commitment(s), such New Lender(s) shall be for all purposes
Lender(s) party to this Agreement to the same extent as if original parties
hereto with Revolving Commitment(s) as set forth on the joinder agreement
executed by the New Lender(s); provided, however, (i) the
total Revolving Commitments of all Lenders (including any New Lenders) shall not
exceed in the aggregate the Maximum Revolving Commitments, and (ii) the
Revolving Commitments of all Lenders that are parties hereto prior to the
addition of any New Lender shall not be affected by the addition of such New
Lender.

     

    (c) Prior to
any increase in the Revolving Commitments becoming effective pursuant to this
Section 2.20, Borrower and Guarantor shall deliver such opinions of counsel for
the Borrower and the Guarantor with respect thereto as the Administrative Agent
may reasonably request, no Default or Event of Default shall then exist or have
occurred and be continuing, and the other conditions set forth in Section 5.2
shall have been satisfied. Effective on the date on which the increase in
Revolving Commitments pursuant to this Section [2.23] takes effect, which date
shall be mutually agreed upon by the Borrower, the Administrative Agent, and
each Lender or New Lender increasing or providing, as the case may be, its
Revolving Commitments, (i) all Loans outstanding hereunder shall be converted
into, and shall be advanced as, Eurodollar Loans or ABR Loans (or both) as
selected by the Borrower by notice to the Administrative Agent in accordance
with the provisions of Section 2.2, such that all such Loans are held by the
Lenders (including any New Lenders) in the proportion of their Revolving
Percentages, as determined taking into account the increase in the Revolving
Commitments, and (ii) each New Lender and each other Lender increasing its
Revolving Commitment shall advance any additional amounts to be advanced by it
hereunder, by making funds available to the Administrative Agent, in immediately
available funds, not later than 1:00 p.m. Charlotte, North Carolina time on such
date.  After the Administrative Agent’s receipt of such funds, the
Administrative Agent shall disburse to the non-Consenting Lenders any resulting
repayments of such outstanding Loans.  If any conversion or payment of
a Eurodollar Loan pursuant to the foregoing provisions occurs on a day that is
not the last day of the applicable Interest Period, the provisions of Section
2.16 shall apply thereto.

     

    
      
         

      

      
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SECTION 3.   

     

    LETTERS OF CREDIT

     

    3.1 L/C
Commitment.

     

    (a) Subject
to the terms and conditions hereof, the Issuing Lender, in reliance on the
agreements of the other Lenders set forth in Section 3.4(a), agrees to issue
letters of credit (“Letters of Credit”)
for the account of the Borrower on any Business Day during the Revolving
Commitment Period in such form as may be approved from time to time by the
Issuing Lender; provided that the
Borrower shall not request the Issuing Lender to issue any Letter of Credit if,
after giving effect to such issuance, (i) the L/C Obligations would exceed the
L/C Commitment or (ii) the aggregate amount of the Available Revolving
Commitments would be less than zero.  Each Letter of Credit shall (i)
be denominated in Dollars, (ii) have a face amount of at least $2,500,000
(unless otherwise agreed by the Issuing Lender) and (iii) expire no later than
the date that is five Business Days prior to the Revolving Termination
Date.

     

    (b) The
Issuing Lender shall not at any time be obligated to issue any Letter of Credit
if such issuance would conflict with, or cause the Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of
Law.

     

    3.2 Procedure for Issuance of
Letter of Credit.  

     

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

     

    
      
         

      

      
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    3.3 Fees and Other
Charges.

     

    (a) The
Borrower will pay a fee on all outstanding Letters of Credit at a per annum rate
equal to the Applicable Margin then in effect with respect to Eurodollar Loans,
shared ratably among the Lenders according to their respective Revolving
Commitments and payable quarterly in arrears on each L/C Fee Payment Date after
the issuance date.  In addition, the Borrower shall pay to the Issuing
Lender for its own account a fronting fee of 0.125% per annum on the undrawn and
unexpired amount of each Letter of Credit, payable quarterly in arrears on each
L/C Fee Payment Date after the Issuance Date.

     

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

     

    3.4 L/C
Participations.

     

    (a) The
Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce the Issuing Lender to issue Letters of Credit, each
L/C Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Lender, on the terms and conditions set forth below,
for such L/C Participant’s own account and risk an undivided interest equal to
such L/C Participant’s Revolving Percentage in the Issuing Lender’s obligations
and rights under and in respect of each Letter of Credit and the amount of each
draft paid by the Issuing Lender thereunder.  Each L/C Participant
unconditionally and irrevocably agrees with the Issuing Lender that, if a draft
is paid under any Letter of Credit for which the Issuing Lender is not
reimbursed in full by the Borrower in accordance with the terms of this
Agreement or which is not converted to ABR Loans pursuant to Section 3.5 of this Agreement,
such L/C Participant shall pay to the Issuing Lender upon demand at the Issuing
Lender’s address for notices specified herein an amount equal to such L/C
Participant’s Revolving Percentage of the amount of such draft, or any part
thereof, that is not so reimbursed.

     

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

     

    
      
         

      

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

     

    3.5 Reimbursement Obligation of
the Borrower.

     

    (a) The
Borrower agrees to reimburse the Issuing Lender on the Business Day next
succeeding the Business Day on which the Issuing Lender notifies the Borrower of
the date and amount of a draft presented under any Letter of Credit and paid by
the Issuing Lender for the amount of (a) such draft so paid and (b) any taxes,
fees, charges or other costs or expenses incurred by the Issuing Lender in
connection with such payment.  Each such payment shall be made to the
Issuing Lender at its address for notices referred to herein in Dollars and in
immediately available funds.  Interest shall be payable on any such
amounts from the date on which the relevant draft is paid until payment in full
at the rate set forth in Section 2.10(b).

     

    (b) Unless
the Borrower shall have notified the Issuing Bank and the Administrative Agent
prior to 11:00 a.m., Charlotte time, on the Business Day immediately prior to
the date on which such draft is honored that the Borrower intends to reimburse
the Issuing Bank for the amount of such draft in funds other than from the
proceeds of Loans, the Borrower shall be deemed to have timely given a notice of
borrowing to the Administrative Agent requesting the Lenders to make an ABR Loan
on the date on which such draft is honored in an exact amount due to the Issuing
Bank.  The Administrative Agent shall notify the Lenders of such
borrowing in accordance with Section 2.2, and each Lender shall
make the proceeds of its ABR Loan included in such borrowing available to the
Administrative Agent for the account of the Issuing Bank in accordance with
Section 2.2.  The
proceeds of such borrowing shall be applied directly by the Administrative Agent
to reimburse the Issuing Bank for the amount of (a) such draft so paid and (b)
any taxes, fees, charges or other costs or expenses incurred by the Issuing
Lender in connection with such payment.

     

    (c) If for
any reason an ABR Loan may not be (as determined in the sole discretion of the
Administrative Agent), or is not, made in accordance with the foregoing
provisions, then each L/C Participant (other than the Issuing Bank) shall be
obligated to fund the participation that such L/C Participant purchased pursuant
to Section 3.4(a) in an amount equal
to such L/C Participant’s Revolving Percentage in the Issuing Lender’s
obligations and rights under and in respect of each Letter of Credit and the
amount of each draft paid by the Issuing Lender thereunder on and as of the date
which such ABR Loan should have occurred pursuant to this Section 3.5.

     

    
      
         

      

      
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    3.6 Obligations
Absolute.  

     

    The
Borrower’s obligations under this Section 3 shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had
against the Issuing Lender, any beneficiary of a Letter of Credit or any other
Person.  The Borrower also agrees with the Issuing Lender that the
Issuing Lender shall not be responsible for, and the Borrower’s Reimbursement
Obligations under Section
3.5 shall not be affected
by, among other things, the validity or genuineness of documents or of any
endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  The
Issuing Lender shall not be liable for any error, omission, interruption or
delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
the Issuing Lender.  The Borrower agrees that any action taken or
omitted by the Issuing Lender under or in connection with any Letter of Credit
or the related drafts or documents, if done in the absence of gross negligence
or willful misconduct and in accordance with the standards of care specified in
the Uniform Commercial Code of the State of New York, shall be binding on the
Borrower and shall not result in any liability of the Issuing Lender to the
Borrower.

     

    3.7 Letter of Credit
Payments.  

     

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

     

    3.8 Applications.  

     

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

     

     

                                                  
SECTION
4.                                

     

    REPRESENTATIONS AND
WARRANTIES

     

    To induce
the Administrative Agent and the Lenders to enter into this Agreement and to
make the Loans and issue or participate in the Letters of Credit, Holdings and
the Borrower hereby jointly and severally represent and warrant to the
Administrative Agent and each Lender that:

     

    
      
         

      

      
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    4.1 Financial
Condition.  

     

    The
audited consolidated balance sheets of Holdings as at December 31, 2007, 2006
and 2005, and the related consolidated statements of income, retained earnings
and cash flows for the fiscal year ended on such date, reported on by and
accompanied by an unqualified report from PricewaterhouseCoopers LLP, fairly
present in all material respects the consolidated financial condition of
Holdings as at such date, and the consolidated results of its operations and its
consolidated cash flows for the fiscal year then ended.  The unaudited
consolidated balance sheet of Holdings as at June 30, 2008, and the related
unaudited consolidated statements of income, retained earnings and cash flows
for the six-month period ended on such date, fairly present in all material
respects the consolidated financial condition of Holdings as at such date, and
the consolidated results of its operations and its consolidated cash flows for
the six-month period then ended (subject to normal year end audit
adjustments).  All such financial statements, including the related
schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).

     

    4.2 No Change. 

     

     Since
December 31, 2005, no event or condition has occurred or changed that has had or
could reasonably be expected to have a Material Adverse Effect.

     

    4.3 Existence; Compliance with
Law.  

     

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

     

    4.4 Power; Authorization;
Enforceable Obligations.  

     

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

     

    
      
         

      

      
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    4.5 No Legal
Bar.  

     

    The
execution, delivery and performance of this Agreement and the other Loan
Documents, the issuance of Letters of Credit, the borrowings hereunder and the
use of the proceeds thereof will not violate any material Requirement of Law or
any material Contractual Obligation of any of Holdings, the Borrower or their
respective Subsidiaries and will not result in, or require, the creation or
imposition of any Lien on any of their respective properties or revenues
pursuant to any Requirement of Law or any such Contractual
Obligation.  No Requirement of Law or Contractual Obligation
applicable to Holdings, the Borrower or any of their respective Subsidiaries
could reasonably be expected to have a Material Adverse Effect.

     

    4.6 Litigation. 

     

     No
litigation, arbitration or administrative proceeding of or before any arbitrator
or Governmental Authority is pending or, to the knowledge of Holdings or the
Borrower, threatened (i) against Holdings or the Borrower or any of their
respective Subsidiaries to restrain the entry by Holdings or the Borrower into,
the enforcement of or exercise of any rights by the Lenders or the
Administrative Agent under, or the performance or compliance by the Borrower
with any obligations under, this Agreement, the Notes, or the Guarantee
Agreement, or (ii) against Holdings or the Borrower or any of their
Subsidiaries which has had or would reasonably be expected to have a Material
Adverse Effect.

     

    4.7 No
Default. 

     

     No
Default or Event of Default has occurred and is continuing.

     

    4.8 Ownership of Property;
Liens. 

     

    Each
Group Member has title in fee simple to, or a valid leasehold interest in, all
its real property which is material to the operation of such Group Member’s
business, and good title to, or a valid leasehold interest in, all its other
property which is material to the operation of such Group Member’s business, and
none of such property is subject to any Lien except as permitted by Section 7.2.

     

    4.9 Intellectual
Property.  

     

    (i) Each
Group Member owns, or is licensed to use, all Intellectual Property necessary
for the conduct of its business as currently conducted; (ii) no material claim
has been asserted and is pending by any Person challenging or questioning the
use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does Holdings or the Borrower know of any valid basis
for any such claim and (iii) the use of Intellectual Property which is material
to the operation of each Group Member’s business does not infringe on the rights
of any Person in any material respect.

     

    4.10 Taxes.  

     

    Each
Group Member has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than any the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have been
provided on the books of the relevant Group Member); no tax Lien has been filed
(except as permitted under Section 7.2(c)), and, to the
knowledge of Holdings and the Borrower, no claim is being asserted, with respect
to any such tax, fee or other charge (other than any such tax, fee or charge,
the amount or validity of which are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the relevant Group Member).

     

    
      
         

      

      
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    4.11 Federal
Regulations. 

     

    No part
of the proceeds of any Loans, and no other extensions of credit hereunder, will
be used in any manner which violates Regulation U as now and from time to time
hereafter in effect or for any purpose that violates the provisions of the
Regulations of the Board.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in
Regulation U.  After application of the proceeds of all Loans and any
purchases funded thereby, less than 25% of the assets of Holdings and the
Borrower and their Subsidiaries consist of “margin stock” (as defined in
Regulation U).

     

    4.12 ERISA.  

     

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

     

    4.13 Investment Company Act;
Other Regulations.  

     

    No Loan
Party is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as
amended.  No Loan Party is subject to regulation under any Requirement
of Law (other than Regulation X of the Board and the Public Utility Holding
Company Act) that limits its ability to borrow Loans or obtain other Revolving
Extensions of Credit under this Agreement.

     

    4.14 Subsidiaries.  

     

    As of the
Closing Date, (a) Schedule 4.14 sets forth
the name and jurisdiction of incorporation of each Subsidiary of each of
Holdings and the Borrower and, as to each such Subsidiary, the percentage of
each class of Capital Stock owned by any Loan Party, and whether such Subsidiary
is then a Restricted Subsidiary or Unrestricted Subsidiary, and (b) except as
set forth on Schedule
4.14, there are
no outstanding subscriptions, options, warrants, calls, rights or other
agreements or commitments (other than stock performance grants granted to
employees or directors and directors’ qualifying shares) of any nature relating
to any Capital Stock of Holdings, the Borrower or any of their respective
Subsidiaries, except as created by the Loan Documents.

     

    
      
         

      

      
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    4.15 Use of
Proceeds.  

     

    The
proceeds of the Loans and the Letters of Credit shall be used to repay existing
Indebtedness, to support the issuance of commercial paper by the Borrower, to
fund Permitted Acquisitions and capital expenditures of Holdings, the Borrower
and the other Group Members, repurchases of shares of Capital Stock of Holdings,
and ongoing working capital needs, and for general corporate purposes of
Holdings, the Borrower and the other Group Members.

     

    4.16 Environmental
Matters.  

     

    Except
(i) as may be disclosed on Schedule 4.16, or (ii) as,
either singly or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect:

     

    (a) the
facilities and properties owned, leased or operated by any of Holdings, the
Borrower, or their respective Subsidiaries (the “Properties”) do not
contain, and have not previously contained, any Materials of Environmental
Concern in amounts or concentrations or under circumstances that constitute or
constituted a violation of, or could give rise to liability under, any
Environmental Law;

     

    (b) none of
Holdings, the Borrower, or their respective Subsidiaries has received or is
aware of any notice of violation, alleged violation, non-compliance, liability
or potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the business operated
by any of them (the “Business”), nor does
Holdings or the Borrower have knowledge or reason to believe that any such
notice will be received or is being threatened;

     

    (c) Materials
of Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location that could give rise
to liability under, any Environmental Law, nor have any Materials of
Environmental Concern been generated, treated, stored or disposed of at, on or
under any of the Properties in violation of, or in a manner that could give rise
to liability under, any applicable Environmental Law;

     

    (d) no
judicial proceeding or governmental or administrative action is pending or, to
the knowledge of Holdings and the Borrower, threatened, under any Environmental
Law to which any of Holdings, the Borrower, or their respective Subsidiaries is
or will be named as a party with respect to the Properties or the Business, nor
are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to the Properties or the
Business;

     

    (e) there has
been no release or threat of release of Materials of Environmental Concern at or
from the Properties, or arising from or related to the operations in connection
with the Properties or otherwise in connection with the Business, in violation
of or in amounts or in a manner that could give rise to liability under
Environmental Laws;

     

    (f) the
Properties and all operations at the Properties are in compliance, and have in
the last five years been in compliance, with all applicable Environmental Laws,
and there is no contamination at, under or about the Properties or violation of
any Environmental Law with respect to the Properties or the Business;
and

     

    
      
         

      

      
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    (g) no Group
Member has assumed any liability of any other Person under Environmental
Laws.

     

    4.17 Accuracy of Information,
etc.

     

      No
statement or information contained in this Agreement, any other Loan Document,
the Confidential Information Memorandum or any other document, certificate or
written statement furnished by any Loan Party or other statement made or
furnished by a Responsible Officer of any Loan Party, in each case to the
Administrative Agent or the Lenders, or any of them, for use in connection with
the transactions contemplated by this Agreement or the other Loan Documents,
contained as of the date such statement, information, document or certificate
was so furnished (or, in the case of the Confidential Information Memorandum, as
of the date of this Agreement), any untrue statement of a material fact or
omitted to state a material fact necessary to make the statements contained
herein or therein not misleading.  There is no fact known to any Loan
Party that could reasonably be expected to have a Material Adverse Effect that
has not been expressly disclosed herein, in the other Loan Documents, in the
Confidential Information Memorandum or in any other documents, certificates and
statements furnished to the Administrative Agent and the Lenders for use in
connection with the transactions contemplated hereby and by the other Loan
Documents.

     

    4.18 Solvency.  

     

    Each Loan
Party is, and after giving effect to the incurrence of all Obligations being
incurred in connection herewith, will be and will continue to be,
Solvent.

     

    4.19 Status of Loans and
Guarantee Agreement.  

     

    The
obligations of Borrower and Holdings in respect of the Loans, the Reimbursement
Obligations, and Guarantee Agreement, respectively, constitute senior,
unsubordinated, unsecured, direct obligations of such Loan Parties and rank
pari passu with such
Loan Parties’ other senior, unsubordinated, unsecured obligations.

     

    4.20 OFAC.  

     

    No Loan
Party (i) is a person whose property or interest in property is blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)), (ii) engages in any dealings or transactions prohibited by Section 2 of
such executive order, or is otherwise associated with any such person in any
manner violative of Section 2, or (iii) is a person on the list of Specially
Designated Nationals and Blocked Persons or subject to the limitations or
prohibitions under any other U.S. Department of Treasury’s Office of Foreign
Assets Control regulation or executive order.

     

    4.21 USA Patriot
Act.  

     

    Each Loan
Party is in compliance, in all material respects, with (i) the Trading with
the Enemy Act, as amended, and each of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto,
and (ii) the Uniting And Strengthening America By Providing Appropriate Tools
Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001, Title III
of Pub. L. 107-56, as amended).  No part of the proceeds of the Loans
will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in violation
of the United States Foreign Corrupt Practices Act of 1977, as
amended

     

     

    
      
         

      

      
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                                                     SECTION
5.                                

     

    CONDITIONS PRECEDENT

     

    5.1 Conditions to Initial
Extension of Credit.  

     

    The
agreement of each Lender to make the initial extension of credit requested to be
made by it is subject to the satisfaction on the Closing Date of the following
conditions precedent:

     

    (a) Credit Agreement; Guarantee
Agreement.  The Administrative Agent shall have received
(i)  this Agreement executed and delivered by the Agents, Holdings,
the Borrower and each Lender, (ii) the Notes requested by the Lenders as
executed and delivered by the Borrower, and (iii) the Guarantee Agreement
executed and delivered by Holdings.

     

    (b) Fees.  The
Lenders and the Administrative Agent shall have received all fees required to be
paid (including, without limitation, the upfront fees), and all expenses for
which invoices have been presented (including the reasonable fees and expenses
of legal counsel to the Administrative Agent), on or before the Closing
Date.

     

    (c) Closing
Certificate.  The Administrative Agent shall have received a
certificate of each Loan Party, dated the Closing Date, substantially in the
form of Exhibit
C, with appropriate insertions and attachments.

     

    (d) Legal
Opinions.  The Administrative Agent shall have received the
executed legal opinions of (1) Kilpatrick Stockton LLP, counsel to Holdings and
the Borrower, and (2) Woodburn and Wedge, special Nevada counsel to the Borrower,
substantially in the forms of Exhibits E-1, and
E-2.  Such
legal opinions shall cover such other matters incident to the transactions
contemplated by this Agreement as the Administrative Agent may reasonably
require.

     

    (e) Certificate of
Officers.  The Administrative Agent shall have received
certificates of the Secretary or an Assistant Secretary of the Borrower and
Holdings containing specimen signatures of the persons authorized to execute the
Loan Documents on behalf of the Borrower and Holdings, and any other documents
provided for herein or therein, together with (x) copies of resolutions of the
Boards of Directors of the Borrower and Holdings authorizing the execution and
delivery of the Loan Documents, (y) copies of the Borrower’s and Holdings’
articles or certificate of incorporation, by-laws, and other governing or
organizational documents, and (z) a certificate of good standing from the
Office of the Secretary of State of the state of organization of each of the
Borrower and Holdings.

     

    (f) Commercial Paper
Rating.  The Borrower has delivered to the Lenders satisfactory
evidence that the Borrower has a short-term commercial paper rating of at least
A2 from S&P and at least P2 from Moody’s.

     

    
      
         

      

      
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    (g) Amendment of Existing Credit
Agreements.  Prior to the effectiveness of this Agreement, the
Borrower shall have obtained the amendment of each of (i) the Credit Agreement
(as amended, the “Existing Credit
Agreement”), dated as of August 31, 2006, among the Loan Parties, the
lenders party thereto from time to time and SunTrust Bank, as administrative
agent, (ii) the Letter of Credit and Security Agreement, dated as of June 5,
2008, among Pivotal Utility Holdings, Inc., Holdings, the lenders party thereto
from time to time and SunTrust Bank, as administrative agent, and (iii) that
certain Letter of Credit and Security Agreement, dated as of September 4, 2008,
among Pivotal Utility Holdings, Inc., Holdings, the lenders party thereto from
time to time and Bank of America, N.A., as administrative agent, in each case
permitting the negative pledge set forth in Section 7.2 hereto.

     

    (h) Other
Documents.  The Administrative Agent shall have received such
other documents, certificates, information and legal opinions as it or the
Required Lenders may have reasonably requested.

     

    5.2 Conditions to Each Extension
of Credit.  

     

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

     

    (a) Representations and
Warranties.  Each of the representations and warranties made by
each Loan Party in or pursuant to the Loan Documents shall be true and correct
in all material respects on and as of such date as if made on and as of such
date, except (i) to the extent any representation and warranty expressly relates
to any earlier date, in which case such representation and warranty shall have
been true and correct in all material respects on and as of such earlier date,
and (ii) no representation or warranty shall be deemed made as of any date
subsequent to the Closing Date as to the matters set forth in Section 4.2 and Section 4.6(ii).

     

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

     

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

     

     

                                                       
SECTION
6.                                

     

    AFFIRMATIVE COVENANTS

     

    Holdings
and the Borrower hereby jointly and severally agree that, so long as the
Revolving Commitments remain in effect, any Letter of Credit remains outstanding
or any Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, each of Holdings and the Borrower shall and shall cause each other
Group Member to:

     

    6.1 Financial
Statements.  

     

    Furnish
to the Administrative Agent  for delivery to the Lenders:

     

    
      
         

      

      
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    (a) as soon
as available, but in any event within 90 days after the end of each fiscal year
of Holdings, a copy of the audited consolidated balance sheet of Holdings and
its consolidated Subsidiaries and a copy of the separate unaudited balance sheet
(or, if audited financial statements are otherwise prepared or required to be
prepared for such Unrestricted Subsidiary, audited balance sheet) of each
Unrestricted Subsidiary, in each case as at the end of such year and the related
audited (or, in the case of any Unrestricted Subsidiary for which audited
statements are not required by this Section 6.1(a), unaudited)
consolidated statements of income and of cash flows for such year, setting forth
in each case in comparative form the figures for the previous year, reported on
for such fiscal year without a “going concern” or like qualification or
exception, or qualification arising out of the scope of the audit, by Holdings’
independent certified public accountants of nationally recognized standing;
and

     

    (b) as soon
as available, but in any event not later than 45 days after the end of each of
the first three quarterly periods of each fiscal year of Holdings (other than
the last fiscal quarter of each fiscal year), a copy of the unaudited
consolidated balance sheet of Holdings and its consolidated Subsidiaries, and a
copy of the separate unaudited consolidated balance sheet of each Unrestricted
Subsidiary, in each case as at the end of such quarter and the related unaudited
statements of income and of cash flows for such quarter and the portion of the
fiscal year through the end of such quarter, setting forth in each case in
comparative form the figures for the previous year, certified by a Responsible
Officer as having been prepared in accordance with GAAP (subject to normal year
end audit adjustments).

     

    All such
financial statements shall be complete and correct in all material respects and
shall be prepared in reasonable detail and in accordance with GAAP applied
consistently throughout the periods reflected therein and with prior periods
(except as approved by such accountants or officer, as the case may be, and
disclosed therein and except for the omission of footnotes in the quarterly
financial statements).

     

    6.2 Certificates; Other
Information.  

     

    Furnish
to the Administrative Agent for delivery to the Lenders (or, in the case of
clause (d), to the relevant Lender):

     

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

     

    (b) (i)
prompt notice to the Administrative Agent of any failure by Holdings or the
Borrower to file with the SEC any annual report on Form 10-K or quarterly report
on Form 10-Q on or before the date such report is required to be filed pursuant
to SEC regulations, and (ii) within five days after the same is filed, notice to
the Administrative Agent of the filing of any such annual report on Form 10-K or
quarterly report on Form 10-Q that had not previously been filed by Holdings or
the Borrower as described in the preceding clause (i), and the availability to
the Lenders of such filing through electronic access;

     

    
      
         

      

      
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    (c) within
five days after the same is filed, notice to the Administrative Agent of the
filing by Holdings or the Borrower with the SEC of any proxy statement, and the
availability to the Lenders of such filing through electronic access;
and

     

    (d) promptly,
such additional financial and other information as any Lender may from time to
time reasonably request.

     

    6.3 Payment of
Obligations.  

     

    Pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its Federal, state and other material taxes
and other material obligations of whatever nature, except where the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings and reserves in conformity with GAAP with respect thereto have been
provided on the books of the relevant Group Member.

     

    6.4 Maintenance of Existence;
Compliance.  

     

    (a) (i)
Preserve, renew and keep in full force and effect its organizational existence
and (ii) take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of its business, except,
in each case, as otherwise permitted by Section 7.3 and except, in the
case of clause (ii) above, to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (b) comply with
all Contractual Obligations and Requirements of Law except to the extent that
failure to comply therewith would not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

     

    6.5 Maintenance of Property;
Insurance. 

     

    (a) Keep
all property useful and necessary in its business in good working order and
condition, ordinary wear and tear excepted and (b) maintain insurance (either
with financially sound insurance companies or through self-insurance) on all its
property in at least such amounts and against at least such risks (but including
in any event public liability and business interruption) as are usually insured
against in the same general area by companies engaged in the same or a similar
business.

     

    6.6 Inspection of Property;
Books and Records; Discussions.  

     

    (a)  Keep
proper books of records and account in respect of Holdings, the Borrower, and
their respective Subsidiaries in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to their business and activities and (b) permit
representatives of the Administrative Agent or any Lender to visit and inspect
any of its properties and examine and make abstracts from any of its books and
records during normal business hours and, if no Event of Default has occurred
and is continuing, upon reasonable notice and as often as may reasonably be
desired and to discuss their respective businesses, operations, properties and
financial and other condition with their respective officers and employees and
with their independent certified public accountants; provided, that unless
an Event of Default has occurred and is continuing, the Administrative Agent and
the Lenders shall use their reasonable efforts to coordinate any such visits or
inspections so as to minimize disruption of the conduct of their respective
businesses, as applicable.

     

    
      
         

      

      
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    6.7 Notices.  

     

    Promptly
give notice to the Administrative Agent and each Lender of:

     

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

     

    (b) the
following events, at such time as a Responsible Officer has knowledge thereof;
any (i) default or event of default under any material Contractual Obligation of
any of Holdings, the Borrower, or their respective Subsidiaries or (ii)
litigation or governmental proceeding that may exist at any time between any of
Holdings, the Borrower, or their respective Subsidiaries and any Governmental
Authority, and (iii) the occurrence of any Reportable Event with respect to any
Plan, a failure to make any required contribution to a Plan, the creation of any
Lien in favor of the PBGC or a Plan or any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan or the institution of
proceedings or the taking of any other action by the PBGC or the Borrower or any
Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of, any Plan,
that in any of the foregoing cases (i) through (iii) singly or in the aggregate,
could reasonably be expected to result in liabilities, losses or claims to the
Group Members in an aggregate amount in excess of $100,000,000; and

     

    (c) any
change in, or withdrawal or suspension of, the Ratings of which Holdings or the
Borrower has received written notification or of which Holdings or the Borrower
becomes aware of the public announcement thereof.

     

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

     

    6.8 Environmental
Laws.

     

    (a) Comply in
all material respects with, and contractually require compliance in all material
respects by all tenants and subtenants, if any, with, all applicable
Environmental Laws, and obtain and comply in all material respects with and
maintain, and contractually require that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses,
approvals, notifications, registrations or permits required by applicable
Environmental Laws except where such non-compliance would not reasonably be
expected to have a Material Adverse Effect.

     

    (b) Conduct
and complete in all material respects all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and comply in a timely manner in all material respects with
all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

     

    6.9 Maintenance of
Ownership.  

     

    In the
case of Holdings, own 100% of the Capital Stock of the Borrower, Atlanta Gas
Light Company, Chattanooga Gas Company, and Virginia Natural Gas,
Inc.

     

     

    
      
         

      

      
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SECTION
7.                                

     

    NEGATIVE COVENANTS

     

    Holdings
and the Borrower hereby jointly and severally agree that, during the term of
this Agreement, and so long as the Revolving Commitments remain in effect, any
Letter of Credit remains outstanding or any Loan or other amount is owing to any
Lender or the Administrative Agent hereunder, each of Holdings and the Borrower
shall not, and shall not permit any of the other Group Members to, directly or
indirectly:

     

    7.1 Financial Condition
Covenant.  

     

    Permit
the ratio of Consolidated Total Debt to Total Capitalization to be greater than
0.70:1.00  as of the end of any fiscal month of Holdings (as
determined by Holdings and the Borrower based on their internal fiscal month-end
consolidated balance sheet prepared not later than ten (10) days following the
end of such fiscal month) or at the end of any fiscal quarter of Holdings (as
reflected on the consolidated financial statements delivered to the Lenders
pursuant to Section 6.1).  For
purposes of the foregoing, to the extent Consolidated Total Debt includes
outstanding amounts under Hybrid Securities, then a portion of the amount of
such Hybrid Securities not to exceed a total of 15% of Total Capitalization may
be excluded from Consolidated Total Debt.

     

    7.2 Liens. 

     

    Create,
incur, assume or suffer to exist any Lien upon any of its property, whether now
owned or hereafter acquired, except:

     

    (a) Mechanics’,
materialmen’s, carriers’, and other similar Liens arising in the ordinary course
of business that are not overdue for a period longer than 30 days or that are
being contested in good faith by appropriate proceedings;

     

    (b) Pledges
or deposits in connection with workers’ compensation, unemployment insurance,
and other social security legislation;

     

    (c) Liens for
taxes not yet due or that are being contested in good faith by appropriate
proceedings, provided that
adequate reserves with respect thereto are maintained on the consolidated books
of Holdings in conformity with GAAP;

     

    (d) Liens in
respect of judgments or awards pending appeal so long as execution is not levied
thereunder, and Liens in favor of plaintiff or defendant in any action before a
court or a tribunal as security for costs or expenses where such action is being
prosecuted or defended in the bona fide interest of Holdings or any other Group
Member;

     

    (e) Liens on
deposits to secure, or any Lien otherwise securing, the performance of bids,
trade contracts (other than for borrowed money), leases, statutory obligations,
surety bonds, appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

     

    (f) Liens on
any fixed or capital assets to secure the purchase of or the cost of
construction or improvement of such fixed or capital assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition,
construction or improvement of such fixed or capital assets (including Liens
securing capital lease obligations), provided that (i)
such Lien secures Indebtedness which on the date incurred and after giving pro
forma effect thereto is permitted under Section 7.1, (ii) such Lien
attaches to such asset concurrently or within 90 days after the acquisition,
improvement or completion of the construction thereof; (iii) such Lien does not
extend to any other asset of any Group Member; and (iv) the Indebtedness secured
by such Lien does not exceed the cost of acquiring, constructing or improving
such fixed or capital assets;

     

    
      
         

      

      
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    (g) Liens (x)
outstanding on or over any Assets acquired after the Closing Date, (y) in
existence at the date of such acquisition and not created in contemplation
thereof, and (z) where the principal amount secured thereby is not increased
over the amount so secured and outstanding at the time of such acquisition
(other than in the case of Liens for a fluctuating balance facility, by way of
utilization of that facility within the limits applicable thereto at the time of
acquisition);

     

    (h) Liens
constituted by a right of set off, or rights over a margin call account, or any
form of cash collateral, or any similar arrangement, in any such case for
obligations incurred in respect of any Hedge Agreements, as renewed or extended
upon the renewal or extension or refinancing or replacement of the obligations
secured thereby;

     

    (i) Liens
existing on the Closing Date and set forth on Schedule 7.2(i) as
renewed, extended, refinanced or replaced, provided that such
renewal, extension, refinancing, or replacement does not cover any other Assets
or increase the obligations secured thereby;

     

    (j) Liens on
the property of a Person existing at the time such Person is merged into or
consolidated with Holdings or any other Group Member and not incurred in
contemplation with such merger or consolidation; and

     

    (k) Liens
created or outstanding on Assets of Holdings or other Group Members, provided that the
aggregate outstanding principal, capital and nominal amounts secured by all
Liens created or outstanding as permitted under clauses (f) through (j) above
and this clause (k) shall not at any time exceed 10% of Consolidated Net
Worth;

     

    7.3 Fundamental
Changes.  

     

    Merge,
consolidate or amalgamate, or liquidate, wind up or dissolve itself (or suffer
any liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except that so long as no Default or Event of Default has
occurred and is continuing or would result therefrom:

     

    (a) any
entity may be merged or consolidated with or into Holdings (provided that
Holdings shall be the continuing or surviving corporation) or any other
Restricted Subsidiary of Holdings (provided that such
Restricted Subsidiary shall be the continuing or surviving corporation);
and

     

    (b) any
Restricted Subsidiary of Holdings may Dispose of any or all of its Assets (i) to
Holdings or any other Restricted Subsidiary of Holdings (upon voluntary
liquidation or otherwise) or (ii) pursuant to a Disposition permitted by Section 7.4 and may thereafter
liquidate, wind up or dissolve.

     

    
      
         

      

      
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    7.4 Disposition of
Property.  

     

    Dispose
of any of its Assets, whether now owned or hereafter acquired, or, in the case
of Holdings or any of its Restricted Subsidiaries, issue or sell any shares of
such Restricted Subsidiary’s Capital Stock to any Person, except:

     

    (a) Dispositions
of obsolete or worn out property in the ordinary course of
business;

     

    (b) sales of
inventory in the ordinary course of business;

     

    (c) Dispositions
permitted by Section 7.3(b)(i);

     

    (d) sales or
issuances of any Restricted Subsidiary’s Capital Stock to Holdings or to any
Restricted Subsidiary of Holdings; and

     

    (e) the
Disposition of other Assets, the aggregate net book value of which, when
combined with all such other Assets sold, leased, transferred or otherwise
disposed of since June 30, 2006, would not exceed 20% of Holding’s
consolidated Assets at the end of the preceding fiscal quarter (including the
fourth fiscal quarter) of Holdings for which financial statements have most
recently been delivered to the Administrative Agent pursuant to Section 6.1.

     

    7.5 Restricted
Payments.  

     

    Declare
or pay any dividend (other than dividends payable solely in common stock of the
Person making such dividend) on, or make any payment on account of, or set apart
assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any Capital Stock of any Group
Member, whether now or hereafter outstanding, or make any other distribution in
respect thereof, either directly or indirectly, whether in cash or property or
in obligations of any Group Member (collectively, “Restricted
Payments”), except that:

     

    (a) any
Restricted Subsidiary may make Restricted Payments to Holdings or to any
Restricted Subsidiary of Holdings or to any third-party investors in any
Restricted Subsidiary of Holdings;

     

    (b) so long
as no Event of Default shall have occurred and be continuing, Holdings may pay
dividends on shares of its Capital Stock; and

     

    (c) so long
as no Event of Default shall have occurred and be continuing, Holdings may buy
back any outstanding shares of its Capital Stock.

     

    7.6 Intentionally
Omitted.

     

    7.7 Investments.  

     

    Make any
advance, loan, extension of credit (by way of guaranty or otherwise) or capital
contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or any assets constituting a business unit of, or make
any other investment in, any Person (all of the foregoing, “Investments”),
except:

     

    (a) extensions
of trade credit in the ordinary course of business;

     

    (b) investments
in Cash Equivalents;

     

    
      
         

      

      
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    (c) Guarantee
Obligations otherwise permitted by this Agreement;

     

    (d) loans and
advances to employees of any Group Member in the ordinary course of business
(including for travel, entertainment and relocation expenses) in an aggregate
amount for all Group Members not to exceed $2,000,000 at any one time
outstanding;

     

    (e) other
Investments made by Holdings or its Restricted Subsidiaries (other than the
Borrower) subsequent to June 30, 2006 where such Investments consist of
purchases of, or other investments in, the Capital Stock or other equity or
ownership interests, assets, obligations or other interests in, Subsidiaries,
joint ventures, or other Persons, in each case that are engaged principally in
the business of purchasing, gathering, compression, transportation,
distribution, exploration, production, processing or storage of natural gas, or
asset management with respect to the foregoing (the foregoing collectively
referred to as “Permitted
Acquisitions”); and

     

    (f) $150,000,000
in respect of Investments other than those described in the preceding clause
(e).

     

    7.8 Negative Pledge
Clauses.  

     

    Except
for the agreements listed on Schedule 7.8, enter into
or suffer to exist or become effective any agreement that prohibits or limits
the ability of any Group Member to create, incur, assume or suffer to exist any
Lien upon any of its property or revenues, whether now owned or hereafter
acquired, other than (a) this Agreement and the other Loan Documents and (b) any
agreements governing any purchase money Liens or capital lease obligations
otherwise permitted hereby (in which case, any prohibition or limitation shall
only be effective against the assets financed thereby).

     

    7.9 Clauses Restricting
Subsidiary Distributions.  

     

    Except
for the agreements listed on Schedule 7.8, enter
into or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary of Holdings to (a) make
Restricted Payments in respect of any Capital Stock of such Restricted
Subsidiary held by, or pay any Indebtedness owed to, Holdings or any other
Restricted Subsidiary of Holdings, (b) make loans or advances to, or other
Investments in, the Borrower or any other Restricted Subsidiary of Holdings or
(c) transfer any of its assets to Holdings or any other Restricted Subsidiary of
Holdings, except for such encumbrances or restrictions existing under or by
reason of (i) any restrictions with respect to a Restricted Subsidiary imposed
pursuant to an agreement permitted hereunder that has been entered into in
connection with the Disposition of all or substantially all of the Capital Stock
or Assets of such Restricted Subsidiary (in which case, any restriction shall
only be effective against such Capital Stock or assets), and (ii) any agreements
with joint venture partners in connection with joint ventures permitted by this
Agreement.

     

    7.10 Lines of Business and Hedge
Activities.  

     

    (a) With
respect to Holdings and each Subsidiary (other than the Borrower), enter into
any business, either directly or through any Subsidiary, except for (i) those
businesses in which Holdings and its Subsidiaries (other than the Borrower) and
its existing joint ventures are engaged on the date of this Agreement, (ii) that
are reasonably related to the businesses referred to in the preceding clause
(i), or (iii) that are being undertaken by comparable companies in the natural
gas industry, (b) with respect to the Borrower, enter into any business, except
for that in which the Borrower is engaged on the Closing Date, or (c) with
respect to Holdings, the Borrower, and each other Group Member, enter into any
Hedge Agreement except in the ordinary course of their business and consistent
with industry practices.

     

    
      
         

      

      
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    7.11 Designation of
Subsidiaries.  

     

    Holdings
may not designate or redesignate any Unrestricted Subsidiary as a Restricted
Subsidiary, or designate or redesignate any Restricted Subsidiary as an
Unrestricted Subsidiary, unless (a) Holdings shall have given not less than ten
(10) days’ prior written notice to the Lenders that the Board of Directors of
Holdings has made such determination, (b) at the time of such designation or
redesignation, and immediately after giving effect thereto, no Default or Event
of Default would exist, (c) in the case of the designation of a Restricted
Subsidiary as an Unrestricted Subsidiary and after giving effect thereto, (i)
such Unrestricted Subsidiary so designated shall not, directly, or indirectly,
hold or own any Indebtedness or Capital Stock of Holdings or any Restricted
Subsidiary, and (ii) such designation shall be deemed a sale of assets and shall
be permitted by the provisions of Section 7.4, (d) in the case of
the designation of an Unrestricted Subsidiary as a Restricted Subsidiary and
after giving effect thereto, all outstanding Indebtedness and all existing Liens
of such Restricted Subsidiary so designated shall be permitted within the
applicable limitations of Sections 7.1 and 7.2, (e) in the case of
the designation of a Restricted Subsidiary as an Unrestricted Subsidiary, such
Restricted Subsidiary shall not at any time after the date of this Agreement
have previously been designated as an Unrestricted Subsidiary more than once,
and (f) in the case of the designation of an Unrestricted Subsidiary as a
Restricted Subsidiary, such Unrestricted Subsidiary shall not at any time after
the date of this Agreement have previously been designated as a Restricted
Subsidiary more than once.

     

     

                                                  
SECTION
8.                                

     

    EVENTS OF DEFAULT

     

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

     

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

     

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

     

    (c) (i) any
Loan Party shall default in the observance or performance of any agreement
contained in clause (i) or (ii) of Section 6.4(a) (with respect to Holdings
and the Borrower only), Section
6.7(a), Section 6.9 or Section 7 of this Agreement;
or

     

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

     

    
      
         

      

      
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    (e) any Group
Member shall (i) default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on
the scheduled or original due date with respect thereto; or (ii) default in
making any payment of any interest on any such Indebtedness beyond the period of
grace or notice and cure, if any, provided in any instrument or agreement under
which such Indebtedness was created; or (iii) any other event shall occur or
condition shall exist under any agreement or instrument relating to any such
Indebtedness and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such event or
condition is to accelerate the maturity of such Indebtedness; or any such
Indebtedness shall be declared due and payable, or be required to be prepaid or
redeemed (other than by a regularly scheduled required prepayment or
redemption), purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Indebtedness shall be required to be made, in each case prior to
the scheduled maturity thereof by reason of such event or condition; provided, that a
default, event or condition described in clause (i), (ii) or (iii) of this
paragraph (e) shall not at any time constitute an Event of Default unless, at
such time, one or more defaults, events or conditions of the type described in
clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be
continuing with respect to Indebtedness the total principal amount of which
exceeds in the aggregate $100,000,000 (which, in the case of Indebtedness
arising under any Hedge Agreement, shall be determined as the amount, if any,
that would then be payable by the Group Member thereunder if such Hedge
Agreement were to be terminated as a result of default by such Group Member);
or

     

    (f) (i) any
Group Member shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or any Group Member shall make a general
assignment for the benefit of its creditors; or (ii) there shall be
commenced against any Group Member any case, proceeding or other action of a
nature referred to in clause (i) above that (A) results in the entry of an order
for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 90 days; or (iii) there shall be
commenced against any Group Member any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets that results in the entry of
an order for any such relief that shall not have been vacated, discharged, or
stayed or bonded pending appeal within 90 days from the entry thereof; or (iv)
any Group Member shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in clause
(i), (ii), or (iii) above; or (v) any Group Member shall generally not, or shall
be unable to, or shall admit in writing its inability to, pay its debts as they
become due; or

     

    
      
         

      

      
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    (g) (i) any
Person shall engage in any “prohibited transaction” (as defined in Section 406
of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not waived,
shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan
shall arise on the assets of the Borrower or any Commonly Controlled Entity,
(iii) a Reportable Event shall occur with respect to, or proceedings shall
commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of the Required Lenders, likely to result in the termination of such
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Borrower or any Commonly
Controlled Entity shall, or in the reasonable opinion of the Required Lenders is
likely to, incur any liability in connection with a withdrawal from, or the
Insolvency or Reorganization of, a Multiemployer Plan or (vi) any other event or
condition shall occur or exist with respect to a Plan; and in each case in
clauses (i) through (vi) above, such event or condition, together with all other
such events or conditions, if any, results in liabilities of the Group Members
in respect thereof in excess of $100,000,000; or

     

    (h) one or
more judgments or decrees shall be entered against any Group Member involving in
the aggregate liabilities (not paid or not fully covered by insurance as to
which the relevant insurance company has acknowledged coverage) of $100,000,000
or more, and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 30 days from the entry
thereof; or

     

    (i) the
guarantee contained in Section 2 of the Guarantee Agreement shall cease, for any
reason, to be in full force and effect or any Loan Party or any Affiliate of any
Loan Party shall so assert; or

     

    (j) (i) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall
become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d) 5 under the
Exchange Act), directly or indirectly, of more than 30% of the outstanding
common stock of Holdings or (ii) the board of directors of Holdings shall cease
to consist of a majority of Continuing Directors;

     

    then, and
in any such event, (A) if such event is an Event of Default specified in clause
(i) or (ii) of paragraph (f) above with respect to the Borrower, automatically
the Revolving Commitments shall immediately terminate and the Loans (with
accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents (including all amounts of L/C Obligations, whether or
not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (B) if such event is any other Event of Default, either or both of
the following actions may be taken:  (i) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower
declare the Revolving Commitments to be terminated forthwith, whereupon the
Revolving Commitments shall immediately terminate; and (ii) with the consent of
the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of
Credit shall have presented the documents required thereunder) to be due and
payable forthwith, whereupon the same shall immediately become due and
payable.  With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration
pursuant to this paragraph, the Borrower shall at such time deposit in a cash
collateral account opened by the Administrative Agent an amount equal to the
aggregate then undrawn and unexpired amount of such Letters of
Credit.  Amounts held in such cash collateral account shall be applied
by the Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the other Loan
Documents.  After all such Letters of Credit shall have expired or
been fully drawn upon, all Reimbursement Obligations shall have been satisfied
and all other obligations of the Borrower hereunder and under the other Loan
Documents shall have been paid in full, the balance, if any, in such cash
collateral account shall be returned to the Borrower (or such other Person as
may be lawfully entitled thereto).  Except as expressly provided above
in this Section, presentment, demand, protest and all other notices of any kind
are hereby expressly waived by the Borrower.

     

    
      
         

      

      
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SECTION
9.                                

     

    THE AGENTS

     

    9.1 Appointment.  

     

    Each
Lender hereby irrevocably designates and appoints the Administrative Agent as
the Agent of such Lender under this Agreement and the other Loan Documents, and
each such Lender irrevocably authorizes the Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto.  Except as set forth in Section 9.9, the provisions of
this Section 9 are
solely for the benefit of the Administrative Agent and the Lenders, and neither
the Borrower nor any other Loan Party shall have rights as a third party
beneficiary of any of such provisions.

     

    9.2 Delegation of
Duties.  

     

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

     

    9.3 Exculpatory
Provisions.  

     

    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
Default or Event of Default has occurred and is continuing;

     

    
      
         

      

      
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    (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 any Loan Party or any of their respective 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 8 and 10.1) or (ii) in the
absence of its own gross negligence or willful misconduct.

     

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

     

    
      
         

      

      
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    9.5 Notice of
Default.  

     

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

     

    9.6 Non Reliance on Agents and
Other Lenders.  

     

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

     

    9.7 Indemnification.  

     

    To the
extent that the Borrower for any reason fails to pay any amount required under
Section 10.5 to be paid by it to
the Administrative Agent (or any sub-agent thereof), the Issuing Lender or any
other Indemnitee, each Lender severally agrees to pay to the Administrative
Agent (or any such sub-agent), the Issuing Lender or such other Indemnitee, as
the case may be, such Lender’s proportion (based on the percentages as used in
determining the Required Lenders 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) or the Issuing Lender in its
capacity as such, or against any other Indemnitee of any of the foregoing acting
for the Administrative Agent (or any such sub-agent) or the Issuing Lender in
connection with such capacity.

     

    
      
         

      

      
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    9.8 Agent in Its Individual
Capacity.  

     

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

     

    9.9 Successor Administrative
Agent.  

     

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

     

    9.10 Co-Syndication
Agents.  

     

    None of
the Co-Syndication Agents shall have any duties or responsibilities hereunder in
its capacity as such.

     

    9.11 Issuing
Lender.  

     

    The
provisions of this Section
9 (other than Section
9.8) shall apply to the
Issuing Lender mutatis
mutandis to the same extent as such provisions apply to the
Administrative Agent.

     

    
      
         

      

      
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SECTION
10.                                

     

    MISCELLANEOUS

     

    10.1 Amendments and
Waivers.  

     

    Neither
this Agreement, any other Loan Document, nor any terms hereof or thereof may be
amended, supplemented or modified except in accordance with the provisions of
this Section 10.1.  The
Required Lenders and each Loan Party (any required response to the matters
described in clauses (a) or (b) of this Section 10.1 not to be
unreasonably delayed by any party) party to the relevant Loan Document may, or,
with the written consent of the Required Lenders, the Administrative Agent and
each Loan Party (any required response to the matters described in clauses (a)
or (b) of this Section
10.1 not to be
unreasonably delayed by any party) party to the relevant Loan Document may, from
time to time, (a) enter into written amendments, supplements or modifications
hereto and to the other Loan Documents for the purpose of adding any provisions
to this Agreement or the other Loan Documents or changing in any manner the
rights of the Lenders or of the Loan Parties hereunder or thereunder or (b)
waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any of
the requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, that no such
waiver and no such amendment, supplement or modification shall (i) forgive any
principal amount or extend the final scheduled date of maturity of any Loan or
extend the expiry date of any Letter of Credit beyond the Revolving Termination
Date, reduce the stated rate of any interest or fee payable hereunder or extend
the scheduled date of any payment thereof, or increase the amount or extend the
expiration date of any Lender’s Revolving Commitment, in each case without the
written consent of each Lender directly affected thereby;  (ii)
eliminate or reduce the voting rights of any Lender under this Section 10.1 without the written
consent of such Lender; (iii) reduce any percentage specified in the
definition of Required Lenders, consent to the assignment or transfer by the
Borrower of any of its rights and obligations under this Agreement and the other
Loan Documents, release the Guarantor from its obligations under the Guarantee
Agreement without the written consent of all Lenders; (iv) amend, modify or
waive any provision of Section
9 without the written
consent of the Administrative Agent; (v) amend, modify or waive any
provision of Section 3 without the written
consent of the Issuing Lender or (vi) amend, modify or waive Sections 2.1(c) or 2.13 or the pro rata treatment
of any Lender without the written consent of all Lenders.  Any such
waiver and any such amendment, supplement or modification shall apply equally to
each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the
Administrative Agent and all future holders of the Loans.  In the case
of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the other
Loan Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent
thereon.

     

    10.2 Notices.  

     

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

     

    
      
         

      

      
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              To
      Holdings:

            	
              AGL
      Resources Inc.

            

    

    Ten
Peachtree Place NE, Suite 1000

    Atlanta,
Georgia 30309

    Attention:  Treasurer

    Telecopy:  (404)
584-3589

    Telephone:  (404)
584-3582

    

    
      	
               
      

            	
              To
      the Borrower:

            	
              AGL
      Capital Corporation

            

    

    2325-B
Renaissance Drive, Suite 10

    Las
Vegas, Nevada 89119

    Attention:  President

    Telecopy:  702-966-4247

    Telephone:  702-966-4246

    

    
      	
               
      

            	
              with
      a copy to:

            	
              AGL
      Resources Inc.

            

    

    Ten
Peachtree Place NE, Suite 1000

    Atlanta,
Georgia 30309

    Attention:  Treasurer

    Telecopy:  (404)
584-3589

    Telephone:  (404)
584-3582

     

    
      	
              To
      the Administrative Agent:

            	
              Wachovia
      Bank, National Association

            

    

    1525 W.
W.T. Harris Blvd

    Building
3A2, Mailcode NC 0680

    Charlotte,
North Carolina  28262

    Attention:  Syndication
Agency Services

    Telecopy
Number:  (704) 383-0288

     

    

    
      	
               
      

            	
              with
      a copy to:

            	
              Wachovia
      Securities

            

    

    Credit
Products Group

    171 17th
Street, NW

    100
Building, 3rd Floor

    Mail
Code-GA 4523

    Atlanta,
GA 30363

    Attention :  Paul
Pritchett, Vice President

    Telecopy
Number: (404) 214-3751

    

    
      	
               
      

            	
              To
      the Issuing Lender:

            	
              Wachovia
      Securities

            

    

    Credit
Products Group

    171 17th
Street, NW

    100
Building, 3rd Floor

    Mail
Code-GA 4523

    Atlanta,
GA 30363

    Attention :  Paul
Pritchett, Vice President

    Telecopy
Number: (404) 214-3751

    

    
      	
               
      

            	
              To
      any other Lender:

            	
              the
      address set forth in the
Administrative

            

    

    Questionnaire
or the Assignment and Acceptance Agreement executed by such Lender

    

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

     

    
      
         

      

      
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    10.3 No Waiver; Cumulative
Remedies.  

     

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

     

    10.4 Survival of Representations
and Warranties.  

     

    All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans and other extensions of credit hereunder and for a
period of one year after the indefeasible payment in full of all Obligations and
the termination of this Agreement and the other Loan Documents.

     

    10.5 Payment of Expenses and
Taxes.  

     

    The
Borrower agrees (a) to pay or reimburse the Administrative Agent for all its
reasonable out of pocket costs and expenses incurred in connection with the
development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other
documents prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, including
the reasonable fees and disbursements of counsel to the Administrative Agent and
filing and recording fees and expenses, with statements with respect to the
foregoing to be submitted to the Borrower prior to the Closing Date (in the case
of amounts to be paid on the Closing Date) and from time to time thereafter on a
quarterly basis or such other periodic basis as the Administrative Agent shall
deem appropriate, (b) to pay or reimburse each Lender and the Administrative
Agent for all its reasonable costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan
Documents and any such other documents, including the fees and disbursements of
counsel (including the reasonable allocated fees and expenses of in-house
counsel) to each Lender and of counsel to the Administrative Agent, (c) to pay,
indemnify, and hold each Lender and the Administrative Agent harmless from, any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other taxes, if any,
that may be payable or determined to be payable in connection with the execution
and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender, the
Administrative Agent, the Issuing Lender and their respective officers,
directors, employees, affiliates, agents and controlling persons (each, an
“Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Loans or any Letters of Credit or the violation
of, noncompliance with or liability under, any Environmental Law applicable to
the operations of any Group Member or any of the Properties and the reasonable
fees and expenses of legal counsel in connection with claims, actions or
proceedings by any Indemnitee against any Loan Party under any Loan Document
(all the foregoing in this clause (d), collectively, the “Indemnified
Liabilities”), provided that the
Borrower shall have no obligation hereunder to any Indemnitee with respect to
Indemnified Liabilities to the extent such Indemnified Liabilities are found by
a final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such
Indemnitee.  Without limiting the foregoing, and to the extent
permitted by applicable law, the Borrower agrees not to assert and to cause its
Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee.  All amounts due under this Section 10.5 shall be payable not
later than 10 days after written demand therefor.  Statements payable
by the Borrower pursuant to this Section 10.5 shall be submitted to
the Treasurer, AGL Resources Inc. (Telephone No. 404/584 3582) (Telecopy No.
404/584-3589), at the address of the Borrower set forth in Section 10.2, or to such other
Person or address as may be hereafter designated by the Borrower in a written
notice to the Administrative Agent.  The agreements in this Section 10.5 shall survive
repayment of the Loans and all other amounts payable hereunder.

     

    
      
         

      

      
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    10.6 Successors and Assigns;
Participations and Assignments.

     

    (a) This
Agreement shall be binding upon and inure to the benefit of Holdings, the
Borrower, the Lenders, the Administrative Agent, all future holders of the Loans
and their respective successors and assigns, except that the Borrower may not
assign or transfer any of its rights or obligations under this Agreement without
the prior written consent of each Lender.

     

    (b) Any
Lender other than any Conduit Lender may, without the consent of the Borrower,
in accordance with applicable law, at any time sell to one or more banks,
financial institutions or other entities (each, a “Participant”)
participating interests in any Loan owing to such Lender, any Commitment of such
Lender or any other interest of such Lender hereunder and under the other Loan
Documents.  In the event of any such sale by a Lender of a
participating interest to a Participant, such Lender’s obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of any such Loan for all purposes under this Agreement
and the other Loan Documents, and the Borrower and the Administrative Agent
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement and the other Loan
Documents.  In no event shall any Participant under any such
participation have any right to approve any amendment or waiver of any provision
of any Loan Document, or any consent to any departure by any Loan Party
therefrom, except to the extent that such amendment, waiver or consent would
reduce the principal of, or interest on, the Loans or any fees payable
hereunder, postpone the date of the final maturity of the Loans or release the
Guarantor from its obligations under the Guarantee Agreement, in each case to
the extent subject to such participation.  The Borrower agrees that if
amounts outstanding under this Agreement and the Loans are due or unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum extent
permitted by applicable law, be deemed to have the right of setoff in respect of
its participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to it
as a Lender under this Agreement, provided that, in
purchasing such participating interest, such Participant shall be deemed to have
agreed to share with the Lenders the proceeds thereof as provided in Section 10.7(a) as fully as if it
were a Lender hereunder.  The Borrower also agrees that each
Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 with respect to its
participation in the Commitments and the Loans outstanding from time to time as
if it was a Lender; provided that, in the
case of Section 2.15, such Participant
shall have complied with the requirements of said Section and provided, further, that no
Participant shall be entitled to receive any greater amount pursuant to any such
Section than the transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by such transferor Lender
to such Participant had no such transfer occurred. Each Lender selling
participations (other than the sale of participations to a Lender Affiliate)
shall use its commercially reasonable efforts to provide prompt notice to the
Borrower and the Administrative Agent of such participations and of the identity
of the purchasers of such participations; provided that no delay or failure of
such notice to be so given shall affect the validity of such sale.

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    (c) Any
Lender may assign to one or more Eligible 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 (i)
except 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
with respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $5,000,000, in the case of any assignment of a Loan, unless
each of the Administrative Agent and the Borrower otherwise consents to such
lesser amount, (ii) 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 and (iii) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Acceptance, together with a processing and recordation fee of
$3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to
the Administrative Agent an administrative questionnaire.  Upon (i)
the execution and delivery of the Assignment and Acceptance by the assigning
Lender and assignee Lender, (ii) acceptance and recording thereof by the
Administrative Agent pursuant to paragraph (c) of this Section, (iii) consent
thereof from the Borrower to the extent required pursuant to this clause
(c) and (iv) if such assignee Lender is a Non-U.S. Lender, compliance by
such Person with Section
2.13(d), from and after
the effective date specified in each Assignment and Acceptance, the Eligible
Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 10.5.  Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    (d) The
Administrative Agent shall, on behalf of the Borrower, maintain at its address
referred to in Section
10.2 a copy of each
Assignment and Acceptance delivered to it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders and the Commitment of, and
the principal amount of the Loans owing to, each Lender from time to
time.  The entries in the Register shall be conclusive, in the absence
of manifest error, and the Borrower, each other Loan Party, the Administrative
Agent and the Lenders shall treat each Person whose name is recorded in the
Register as the owner of the Loans and any Notes evidencing the Loans recorded
therein for all purposes of this Agreement.  Any assignment of any
Loan, whether or not evidenced by a Note, shall be effective only upon
appropriate entries with respect thereto being made in the Register (and each
Note shall expressly so provide).  Any assignment or transfer of all
or part of a Loan evidenced by a Note shall be registered on the Register only
upon surrender for registration of assignment or transfer of the Note evidencing
such Loan, accompanied by a duly executed Assignment and Acceptance, and
thereupon one or more new Notes shall be issued to the designated
Assignee.

     

    (e) Upon its
receipt of an Assignment and Acceptance executed by an Assignor, an Assignee and
any other Person whose consent is required by Section 10.6(c), together with
payment to the Administrative Agent of a registration and processing fee of
$3,500, the Administrative Agent shall (i) promptly accept such Assignment and
Acceptance and (ii) record the information contained therein in the Register on
the effective date determined pursuant thereto.

     

    (f) For
avoidance of doubt, the parties to this Agreement acknowledge that the
provisions of this Section
10.6 concerning
assignments relate only to absolute assignments and that such provisions do not
prohibit assignments creating security interests, including any pledge or
assignment by a Lender to any Federal Reserve Bank in accordance with applicable
law.

     

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

     

    (h) Each of
Holdings, the Borrower, each Lender and the Administrative Agent hereby confirms
that it will not institute against a Conduit Lender or join any other Person in
instituting against a Conduit Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding under any state bankruptcy or
similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify, save
and hold harmless each other party hereto for any loss, cost, damage or expense
arising out of its inability to institute such a proceeding against such Conduit
Lender during such period of forbearance.

     

    
      
         

      

      
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    10.7 Adjustments; Set
off.

     

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

     

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

     

    10.8 Counterparts.  

     

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

     

    10.9 Severability.  

     

    Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     

    
      
         

      

      
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    10.10 Integration.  

     

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

     

    10.11 GOVERNING
LAW.  

     

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

     

    10.12 Submission To Jurisdiction;
Waivers.  

     

    Each of
Holdings and the Borrower hereby irrevocably and unconditionally:

     

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

     

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

     

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

     

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

     

    (e) no
Indemnitee referred to in Section 10.5 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 (including Intralinks, SyndTrak or
similar systems) in connection with this Agreement or the other Loan Documents
or the transactions contemplated hereby or thereby; and

     

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

     

    
      
         

      

      
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    10.13 Acknowledgements.  

     

    Each of
Holdings and the Borrower hereby acknowledges that:

     

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

     

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

     

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

     

    10.14 Confidentiality.  

     

    Each of
the Administrative Agent and each Lender agrees to keep confidential all
non-public information provided to it by any Loan Party pursuant to this
Agreement that is designated by such Loan Party as confidential, provided that nothing
herein shall prevent the Administrative Agent or any Lender from disclosing any
such information (a) to the Administrative Agent, any other Lender or any
Lender Affiliate, (b) subject to an agreement to comply with the provisions of
this Section, to any actual or prospective Transferee or any direct or indirect
counterparty to any Hedge Agreement (or any professional advisor to such
counterparty), (c) subject to an agreement to comply with the provisions of this
Section, to its employees, directors, agents, attorneys, accountants and other
professional advisors or those of any of its affiliates, (d) upon the request or
demand of any Governmental Authority, (e) in response to any order of any
court or other Governmental Authority or as may otherwise be required pursuant
to any Requirement of Law, (f) if requested or required to do so in connection
with any litigation or similar proceeding, (g) that has been publicly disclosed,
(h) to the National Association of Insurance Commissioners or any similar
organization or any nationally recognized rating agency that requires access to
information about a Lender’s investment portfolio in connection with ratings
issued with respect to such Lender, or (i) in connection with the exercise of
any remedy hereunder or under any other Loan
Document.  Notwithstanding the foregoing, the parties agree that this
Agreement does not limit the ability of any party hereto (or any employee,
representative, or other agent of such party) to disclose to any Person the tax
treatment or tax structure of the financing transactions evidenced by this
Agreement; provided, however, the
foregoing is not intended to waive the attorney-client privilege or any other
privileges, including the tax advisor privilege under Section 7525 of the
Code.

     

    10.15 WAIVERS OF JURY
TRIAL.  

     

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

     

    
      
         

      

      
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    10.16 USA Patriot Act
Notice.  

     

    Each of
the Lenders and the Agents hereby notifies the Borrower and Holdings that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56, as amended), it is required to obtain, verify and record information
that identifies the Borrower and Holdings, which information includes the names
and addresses of the Borrower and Holdings and any other information that will
allow such Lender or Agent, as applicable, to identify the Borrower and Holdings
in accordance with such Act.

     

    10.17 No Fiduciary
Duty.  

     

    Each
Agent, each Lender and their Affiliates (collectively, solely for purposes of
this paragraph, the “Lenders”), may have
economic interests that conflict with those of the Loan Parties.  Each
Loan Party agrees that nothing in the Loan Documents or otherwise will be deemed
to create an advisory, fiduciary or agency relationship or fiduciary or other
implied duty between the Lenders and each Loan Party and their respective
stockholders or its affiliates.  Each Loan Party acknowledges and
agrees that (i) the transactions contemplated by the Loan Documents are
arm's-length commercial transactions between the Lenders, on the one hand, and
the Loan Parties, on the other, (ii) in connection therewith and with the
process leading to such transaction each of the Lenders is acting solely as a
principal and not the agent or fiduciary of each Loan Party and their respective
management, stockholders, creditors or any other person, (iii) no Lender has
assumed an advisory or fiduciary responsibility in favor of any Loan Party with
respect to the transactions contemplated hereby or the process leading thereto
(irrespective of whether any Lender or any of its affiliates has advised or is
currently advising any Loan Party on other matters) or any other obligation to
any Loan Party except the obligations expressly set forth in the Loan Documents
and (iv) the Loan Parties have consulted its own legal and financial advisors to
the extent it deemed appropriate.  Borrower further acknowledges and
agrees that it is responsible for making its own independent judgment with
respect to such transactions and the process leading
thereto.  Borrower agrees that it will not claim that any Lender has
rendered advisory services of any nature or respect, or owes a fiduciary or
similar duty to Borrower, in connection with such transaction or the process
leading thereto.

     

    

     

    

     

    

     

    

     

    [Remainder
of page intentionally blank; next page is signature page]

     

    

     

    
      
        
           

           

        

         

      

      
        63

        
          

        

      

      
         

      

    

    

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

     

    AGL
RESOURCES INC.

    

    

    
      	
               
      

            	
              By:

            	 /s/ Andrew Evans	 

    

    Name:
Andrew Evans

    Title:
EVP & CFO

    

    

    AGL
CAPITAL CORPORATION

    

    

    
      	
               
      

            	
              By:

            	 /s/ Paul R. Shlanta	 

    

    Name:
Paul R. Shlanta

    Title:
President

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    WACHOVIA BANK, NATIONAL ASSOCIATION as
Administrative

    Agent, a
Lender, and Issuing Lender

    

    

    
      	
               
      

            	
              By:

            	 /s/ Paul Prichett	 

    

    Name:
Paul Prichett

    Title:
Vice President

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    THE BANK OF TOKYO-MITSUBISHI UFJ,
LTD., NEW YORK BRANCH, as Co-Syndication Agent and as a
Lender

    

    

    
      	
               
      

            	
              By:

            	  /s/ Alan Reiter	 

    

    Name:
Alan Reiter

    Title:
Authorized Signatory

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

        

         

      

      
         

        
          

        

      

      
         

      

    

    CALYON NEW YORK BRANCH, as
Co-Syndication Agent and as a Lender

    

    

    
      	
               
      

            	
              By:

            	 /s/ Darrell Stanley	 

    

    Name:
Darrell Stanley

    Title:
Managing Director

     

     

    
      	
            	
              By:

            	 /s/ Sharada Manne	 

      Name:
Sharada Manne

      Title:
Director

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    THE ROYAL BANK OF SCOTLAND
PLC, as Co-Syndication Agent and a Lender

    

    

    
      	
               
      

            	
              By:

            	 /s/ Brian Williams	 

    

    Name:
Brian Williams

    Title:
Vice President

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SUNTRUST BANK,

    as
Co-Syndication Agent and a Lender

    

    

    
      	
               
      

            	
              By:

            	 /s/ Andrew Johnson	 

    

    Name:
Andrew Johnson

    Title:
Director

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    WILLIAM STREET CREDIT
CORPORATION, as a Lender

    

    

    
      	
               
      

            	
              By:

            	 /s/ Mark Walton	 

    

    Name:
Mark Walton

    Title:
Authorized Signatory

    

    
      
        
          SIGNATURE
PAGE TO

          AGL
RESOURCES INC. 364-DAY CREDIT AGREEMENT

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1

    

    

    REVOLVING
COMMITMENTS

    

    

    

    
      	
              LENDER

            	 	
              REVOLVING COMMITMENT

            	 
	
              Wachovia
      Bank, National Association

            	 	$	25,000,000	 
	
              The
      Bank of Tokyo-Mitsubishi UFJ, Ltd.

            	 	$	25,000,000	 
	
              Calyon
      New York Branch

            	 	$	25,000,000	 
	
              The
      Royal Bank of Scotland plc

            	 	$	25,000,000	 
	
              SunTrust
      Bank

            	 	$	25,000,000	 
	
              William
      Street Credit Corporation

            	 	$	15,000,000	 
	
              Total
      Revolving Commitments

            	 	$	140,000,000	 

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
4.14

    

    

    SUBSIDIARIES

    

    

    
      	
              Name

            	
              Jurisdiction

              of

              Organization

            	
              %
      of Capital Stock owned by AGL Resources Inc. or its
      Subsidiaries

            
	
              AGL
      C&I Energy Services, Inc.

            	
              Delaware

            	
              100%

            
	
              AGL
      Capital Corporation

            	
              Nevada

            	
              100%

            
	
              AGL
      Capital Trust I

            	
              Delaware

            	
              100%

            
	
              AGL
      Capital Trust II

            	
              Delaware

            	
              100%

            
	
              AGL
      Investments, Inc.

            	
              Georgia

            	
              100%

            
	
              AGL
      Macon Holdings, Inc.

            	
              Georgia

            	
              100%

            
	
              AGL
      Networks, LLC

            	
              Delaware

            	
              100%

            
	
              AGL
      Resources Inc. Political Action Committee, Inc.

            	
              Georgia

            	
              100%-Nonprofit
      Corporation

            
	
              AGL
      Resources Private Foundation Inc.

            	
              Georgia

            	
              100%-Nonprofit
      Corporation

            
	
              AGL
      Rome Holdings, Inc.

            	
              Georgia

            	
              100%

            
	
              AGL
      Services Company

            	
              Georgia

            	
              100%

            
	
              Atlanta
      Gas Light Company

            	
              Georgia

            	
              100%

            
	
              Chattanooga
      Gas Company

            	
              Tennessee

            	
              100%

            
	
              Compass
      Energy Consulting, LLC

            	
              Virginia

            	
              100%

            
	
              Compass
      Energy Gas Services, LLC

            	
              Virginia

            	
              100%

            
	
              Compass
      Energy Services, Inc.

            	
              Virginia

            	
              100%

            
	
              Customer
      Care Services, Inc.

            	
              Georgia

            	
              100%

            
	
              Employee
      Care Program, Inc.

            	
              Georgia

            	
              100%-Nonprofit
      Corporation

            
	
              Energy
      Risk Insurance Services Company

            	
              British
      Virgin Islands

            	
              100%

            
	
              Georgia
      Gas Company

            	
              Georgia

            	
              100%

            
	
              Georgia
      Natural Gas Company

            	
              Georgia

            	
              100%

            
	
              Global
      Energy Resources Insurance Corporation

            	
              Hawaii

            	
              100%

            
	
              Golden
      Triangle Storage, Inc.

            	
              Delaware

            	
              100%

            
	
              HPMT,
      Kft.

            	
              Hungary

            	
              100%

            
	
              Jefferson
      Island Storage & Hub, LLC

            	
              Delaware

            	
              100%

            
	
              Magnolia
      Enterprise Holdings, Inc.

            	
              Georgia

            	
              100%

            
	
              NUI
      Capital Corp.

            	
              Florida

            	
              100%

            
	
              NUI
      Corporation

            	
              New
      Jersey

            	
              100%

            
	
              NUI
      Energy Brokers, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      Energy, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      Hungary, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      International, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      Sales Management, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      Saltville Storage, Inc.

            	
              Delaware

            	
              100%

            
	
              NUI
      Service, Inc.

            	
              New
      Jersey

            	
              100%

            
	
              OAS
      Group, Inc.

            	
              New
      Jersey

            	
              100%

            
	
              Pivotal
      Energy Services, Inc.

            	
              Georgia

            	
              100%

            
	
              Pivotal
      Jefferson Island Storage & Hub, LLC

            	
              Delaware

            	
              100%

            
	
              Pivotal
      LNG, Inc.

            	
              Delaware

            	
              100%

            
	
              Pivotal
      Propane of Virginia, Inc.

            	
              Delaware

            	
              100%

            
	
              Pivotal
      Storage, Inc.

            	
              Delaware

            	
              100%

            
	
              Pivotal
      Utility Holdings, Inc.

            	
              New
      Jersey

            	
              100%

            
	
              Sequent
      Energy Canada Corp.

            	
              Delaware

            	
              100%

            
	
              Sequent
      Energy Management, L.P.

            	
              Georgia

            	
              100%

            
	
              Sequent
      Energy Marketing, L.P.

            	
              Georgia

            	
              100%

            
	
              Sequent
      Energy Services Inc.

            	
              Delaware

            	
              100%

            
	
              Sequent
      Holdings, LLC

            	
              Georgia

            	
              100%

            
	
              Sequent,
      LLC

            	
              Georgia

            	
              100%

            
	
              Southeastern
      LNG, Inc.

            	
              Georgia

            	
              100%

            
	
              SouthStar
      Energy Services LLC

            	
              Delaware

            	
                 70%

            
	
              T.I.C.
      Enterprises, LLC

            	
              Delaware

            	
              100%

            
	
              Trustees
      Investments, Inc.

            	
              Georgia

            	
              100%

            
	
              Virginia
      Gas Company

            	
              Delaware

            	
              100%

            
	
              Virginia
      Natural Gas, Inc.

            	
              Virginia

            	
              100%

            

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
4.16

    

    

    ENVIRONMENTAL
MATTERS

    

    

    
      	
              1)  

            	
              Manufactured Gas
      Plants.            

            

    

     

     

    Georgia. Atlanta Gas
Light Company (“AGLC”) is required to investigate possible environmental
contamination at manufactured gas plants (“MGP”) and, if
necessary, clean up any contamination. AGLC has been associated with ten MGP
sites in Georgia and three in Florida. Based on investigations to date, cleanup
has either already occurred or is likely at most of these sites.  As of
June 30, 2006, the remediation program in Georgia was approximately 100%
complete, with the exception of ground water conditions.  As reported in
Holdings Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, the
projected costs of the remaining remediation at these sites are estimated to be
$25 million, with additional future costs for the Florida sites in the range of
$7 million to $11 million. 

     

     

    New Jersey:  In
New Jersey, Pivotal Utility Holdings, Inc. (f/k/a NUI Utilities, Inc.) (“PUHI”) . the utility
subsidiary of NUI Corporation (“NUI”) owns five
properties where former MGPs were operated.  A sixth MGP site, formerly
operated by Elizabethtown Gas, a division of PUHI, operating in New Jersey
(“ETG”), is now
owned by a church. 

     

     

    Five of
the six sites in New Jersey are under a Memorandum Agreement (MOA), and the
sixth site is subject to an Administration Consent Order (ACO) with the New
Jersey Department of Environmental Protection (NJDEP).  The MOAs and ACO
require PUHI to investigate on-site contamination, and if required by the NJDEP,
investigate off-site impacts as well.  Various investigation and cleanup
investigations have been conducted and are progressing slowly, but cleanups are
likely at most sites.  Based upon our review of these sites to date, the
likely estimated cost range to address the New Jersey MGP sites is $61 million
to $119 million. These cost ranges are estimates.   

     

     

    ETG’s
prudently incurred remediation costs for the New Jersey properties have been
authorized by the New Jersey Board of Public Utilities to be recoverable in
rates through ETG’s Remediation Adjustment Clause.  As a result, ETG has
recorded a regulatory asset of approximately $63 million, inclusive of interest,
as a regulatory asset, reflecting both recorded future costs and accrued
interest.  PUHI has also recovered a portion of MGP remediation costs
incurred in New Jersey from the company's insurance carriers.

     

    Other States. Outside
of New Jersey, NUI Corporation owns, or previously owned, ten properties located
in the states of North Carolina, South Carolina, Pennsylvania, New York and
Maryland on which MGPs were operated by NUI or by other parties in the
past.  Two sites (Athens, Pennsylvania; Reidsville, North Carolina) have
been sold to third parties, who have agreed to indemnify NUI against
environmental liabilities.

    

    Of these
ten sites, only one site (Elizabeth City, North Carolina) has had any regulatory
activity over the past ten years.  The Elizabeth City site is subject to an
Administrative Consent Order with the North Carolina Department of Environment
and Natural Resources (“NCDENR”), dated October 31, 2001, and under such order,
the Company has been directly by the NCDENR to enter the formal site
investigation stage.

    

    Currently,
there is only limited information available to assess the potential
environmental liability associated with these non-New Jersey sites, and the
liability for these sites will remain an uncertainty until a more vigorous
environmental assessment is performed.  Regarding the Elizabeth City site,
experience at other similar sites suggests that the costs for remediation of
this site will likely range from $10 to $20 million. There is one other site in
North Carolina where investigation and remediation is probable, although no
regulatory order exists and there is not currently any basis to reasonably
estimate the costs of such actions. For the remaining sites, no basis for
liability has been asserted. 

    

     

    NUI Environmental
Reserves:  Although the
actual total cost of future environmental investigation and remediation efforts
cannot be reasonably estimated, we have recorded on an undiscounted basis a
total reserve of approximately $70 million, which we believe represents the
probable minimum amount we may expend over the next 30 years. Of this reserve,
approximately $61 million relates to remediation of the New Jersey MGP
properties and approximately $9 million relates to remediation of the MGP
properties located outside the state of New Jersey.

     

    
      	
              2)  

            	
              AGLC Pipeline
      Replacement.

            

    

     

     

    On
January 8, 1998, the Georgia Public Service Commission (“GPSC”) issued
procedures and set a schedule for hearings regarding alleged pipeline safety
violations.  On July 21, 1998, the GPSC approved a settlement between AGLC
and the staff of the GPSC that details a 10-year pipeline replacement program
(“PRP) for
approximately 2,300 miles of cast iron and bare steel pipe.  October 1,
2004 marked the beginning of the seventh year of the original 10-year
PRP.

     

     

    On June
10, 2005, AGLC and the GPSC entered into a Settlement Agreement that, among
other things, extends AGLC’s PRP by five years to require that all replacements
be completed by December 2013, with the timing of such replacements to be
subsequently determined through discussions with GPSC staff. Under the
Settlement Agreement, rates charged to customers will remain unchanged through
April 30, 2010, but AGLC will recognize reduced base rate revenues of $5 million
on an annual basis through April 30, 2010. The five-year total reduction in
recognized base rate revenues of $25 million will be applied to the amount of
costs incurred to replace pipe and subsequently recovered from
customers.

     

     

    For
a further description of environmental and pipeline replacement matters, see the
AGL Resources’  2008 10-K filing.

     

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
7.2(i)

    

    

    EXISTING
LIENS

    

    

    None.

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
7.8

    

    

    AGREEMENTS PROHIBITING OR
LIMITING LIENS

    

    

    

    
      	
              1.  

            	
              Indenture,
      dated December 1, 1989, as amended, between Atlanta Gas Light Company
      and The Bank of New York Mellon, as successor trustee, pursuant to which
      Atlanta Gas Light Company issued its medium term
  notes.

            

    

    

    
      	
              2.  

            	
              Loan
      Agreement, dated June 1, 1996, between NUI Utilities, Inc. (f/k/a NUI
      Corporation) and New Jersey Economic Development Authority pursuant to
      which Pivotal Utility Holdings Inc. (f/k/a NUI Utilities, Inc.) issued
      $39.0 million Variable Rate Bonds, due June 1,
    2026.

            

    

    

    
      	
              3.  

            	
              Loan
      Agreement, dated May 1, 2007, between Pivotal Utility Holdings, Inc.
      (f/k/a NUI Utilities, Inc. and NUI Corporation) and New Jersey Economic
      Development Authority, as amended by that certain First Amendment to Loan
      Agreement, dated June 1, 2008, pursuant to which NUI Utilities issued
      $54.6 million bonds due June 1,
2032.

            

    

    

    
      	
              4.  

            	
              Loan
      Agreement, dated December 1, 1998, between NUI Utilities, Inc. (f/k/a
      NUI Corporation) and New Jersey Economic Development Authority, pursuant
      to which NUI Utilities issued $40.0 million 5.25% bonds due
      November 1, 2033.

            

    

    

    
      	
              5.  

            	
              Loan
      Agreement, dated May 1, 2005, between Pivotal Utility Holdings, Inc.
      and Brevard County, FL, as amended by that certain First Amendment to Loan
      Agreement, dated June 1, 2008, pursuant to which Pivotal Utility Holdings,
      Inc. issued $20 million bonds due October 1, 2024.
    

            

    

    

    
      	
              6.  

            	
              Loan
      Agreement, dated April 1, 2005, between Pivotal Utility Holdings,
      Inc. and New Jersey Economic Development Authority, as amended by that
      certain First Amendment to Loan Agreement, dated June 1, 2008, pursuant to
      which Pivotal Utility Holdings, Inc. issued $46.5 million bonds due
      October 1, 2022.

            

    

    

    
      	
              7.  

            	
              Credit
      Agreement dated as of August 31, 2006 by and among AGL Capital
      Corporation, as Borrower, AGL Resources Inc., as Guarantor, SunTrust Bank,
      as Administrative Agent, the several lenders
      from time to time party thereto, Wachovia Bank, National
      Association, as Syndication Agent, and The Bank of Tokyo-Mitsubishi-UFJ,
      Ltd. New York Branch, Calyon New York Branch and JP Morgan Chase Bank,
      N.A., as Co-Documentation Agents

            

    

    

    
      	
              8.  

            	
              Letter
      of Credit and Security Agreement dated as of June 5, 2008 by and among
      Pivotal Utility Holdings, Inc., as Borrower, AGL Resources Inc., as
      Guarantor, SunTrust Bank, NA as Administrative Agent, the several lenders
      from time to time party thereto, The Bank of Tokyo-Mitsubishi-UFJ,
      Ltd., as Syndication Agent, Wells Fargo Bank, National Association, as
      Issuing Bank, SunTrust Robinson Humphrey Inc. and The Bank of
      Tokyo-Mitsubishi-UFJ, Ltd., as Co-Lead Arrangers and Co-Book
      Runners

            

    

     

    
      	
              9.  

            	
              Letter
      of Credit and Security Agreement dated as of September 4, 2008 by and
      among Pivotal Utility Holdings, Inc., as Borrower, AGL Resources Inc., as
      Guarantor, Bank of America, NA, as Administrative Agent, the  several
      lenders from time to time party thereto, The Bank of
      Tokyo-Mitsubishi-UFJ, Ltd., as Syndication Agent, and Bank of America,
      N.A., as Issuing Bank.

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