Document:

EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

This Employment Agreement (“Agreement”) is made as of August 15, 2017, between Daré Bioscience (the
“Company”), and Mark Walters (the “Executive”). 
 WHEREAS, the Company desires to retain and employ the Executive and
the Executive desires to be retained and employed by the Company on the terms contained in this Agreement, which shall supersede any prior employment agreements as of the effective date above. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1. Position and Duties. 

(a) The Executive shall serve as the Company’s Vice President of Operations and report directly to the Chief Executive Officer
(“CEO”). 
 (b) The Executive shall perform those services customary to this office and such other lawful duties as may be
assigned by the CEO. The Executive shall devote Executive’s primary working time and best efforts to the performance of the duties under this Agreement and shall be subject to, and shall comply with the Company policies, practices and
procedures and all codes of ethics or business conduct applicable to the position, as in effect from time to time. Notwithstanding the foregoing, the Executive shall be entitled to (i) serve as a member of the board of directors of a reasonable
number of other companies, subject to the advance approval of the board of directors, which approval shall not be unreasonably withheld, (ii) serve on civic, charitable, educational, religious, public interest or public service boards, subject
to the advance approval of the CEO, which approval shall not be unreasonably withheld, and (iii) manage the Executive’s personal and family investments, in each case, to the extent such activities do not materially interfere, as determined
by the Company in good faith, with the performance of the Executive’s duties and responsibilities hereunder. 
 2. Term. This
Agreement and the Executive’s employment pursuant to this Agreement shall begin on the date indicated above (the “Effective Date”) and ending on the second anniversary of the Effective Date (the “Expiration Date”), unless
terminated earlier by the Company or the Executive pursuant to Section 4 of this Agreement (the “Term”). This Agreement shall renew automatically for one-year Terms on the second anniversary of the Effective Date, and on each
anniversary of the Effective Date thereafter, unless either the Company or Executive notifies the other, in writing and in accordance with Section 17 herein, at least sixty (60) days prior to the Expiration Date (or extended Expiration
Date), that either the Company or Executive wishes to terminate this Agreement (in which case this Agreement shall terminate in accordance with Section 4(a) herein). 

3. Compensation and Related Matters. 

(a) Base Salary. During the Term, the Executive’s annual base salary shall be two hundred twenty thousand dollars ($220,000.00)
(the “Base Salary”). The Base Salary shall be payable in accordance with the Company’s normal payroll procedures in effect from time to time. Executive shall be considered for performance and market-based increases to the Base Salary
on an annual basis, which increases shall be granted at the discretion of the Board. The Base Salary shall be retroactive and payable as of July 19, 2017. 

(b) Annual Bonus. During the term of this Agreement, Executive will have the right to participate in any bonus plan or other incentive
plans that may be developed or implemented by the Company. Such bonus compensation will be targeted at thirty percent (30%) of Executive’s Base Salary to be earned by Executive upon achieving certain forecasts or milestones, which will be
determined by the Company from time to time, in its sole discretion, and which shall be provided to Executive (“Target Bonus”). Any bonus Executive may be entitled to receive hereunder will be payable by Company at such time, in such
amounts, and in such manner as provided for in the applicable bonus or incentive plan implemented by Company, but not later than ninety (90) days following the close of the Company fiscal year to which any bonus relates. 

 (c) Business Expenses. During the Term, the Executive shall be entitled to receive prompt
reimbursement for all reasonable business expenses incurred by Executive in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers. 

(d) Other Benefits. During the Term and subject to any contribution required of employees of the Company, the Executive shall be
entitled to participate in all equity, pension, savings and retirement plans, welfare and insurance plans, practices, policies, programs and perquisites of employment applicable generally to other senior executives of the Company, except to the
extent any employee benefit plan provides for benefits otherwise provided to the Executive hereunder (e.g., annual bonuses and severance). Such participation shall be subject to (i) requirements of applicable law, (ii) the terms of the
applicable plan documents, (iii) generally applicable Company policies, and (iv) the discretion of the Board or any administrative or other committee provided for under or contemplated by such plan. The Executive shall have no recourse
against the Company under this Agreement in the event that the Company should alter, modify, add to or eliminate any or all of its employee benefit plans. 

(e) Vacation; Holidays. During the Term, the Executive shall be entitled to take vacation and other holiday time in accordance with the
policies applicable to senior executives of the Company. 
 (f) One-Time Payment. In consideration of the Executive’s entry into
this Agreement, within thirty (30) days of the execution of this Agreement, the Company will make a single lump-sum one-time payment to the Executive in the amount of thirty-three thousand dollars ($33,000.00), less applicable taxes and
withholdings. 
 4. Termination. The Executive’s employment may be terminated prior to the expiration of the Term hereof and
this Agreement may be terminated under the following circumstances: 
 (a) Intent not to renew. This Agreement and Executive’s
employment shall terminate on the 60th day following the effective date of delivery of the notice of an intent not to renew this Agreement, as set forth in Sections 2 and 17 herein. 

(b) Death. The Executive’s employment shall terminate upon the Executive’s death. 

(c) Disability. The Company may terminate the Executive’s employment if the Executive becomes subject to a Disability. For
purposes of this Agreement, “Disability” means the Executive is unable to perform the essential functions of the Executive’s position, with or without a reasonable accommodation, for a period of 90 consecutive calendar days or 180
non-consecutive calendar days within any rolling 12 month period. 
 (d) Termination by Company for Cause. The Company may terminate
the Executive’s employment for Cause. For purposes of this Agreement, “Cause” means (i) Executive’s act(s) of gross negligence, willful misconduct or material dishonesty in the course of Executive’s employment
hereunder, provided that the Board of Directors first provides Executive with written notice of such conduct and thirty (30) days to cure such conduct; (ii) misappropriation (or attempted misappropriation) by Executive of any assets of the
Company or any of its affiliates; (iii) the commission or attempted commission of any act of fraud or embezzlement by Executive; (iv) willful violation of any law or regulation which adversely and materially affects the Executive’s
ability to discharge the Executive’s duties or has a direct, substantial and adverse effect on the Company; (v) Executive’s material breach of this Agreement provided that the Company first provides Executive with written notice of
such conduct and thirty (30) days to cure such conduct, if curable; (vi) any other intentional misconduct by Executive adversely affecting the business or affairs of the Company or any of its affiliates. 

(e) Termination by the Company without Cause. The Company may terminate the Executive’s employment at any time without Cause upon
14 days prior written notice. 
 (f) Termination by the Executive. The Executive may terminate the Executive’s employment at any
time for any reason other than a Good Reason, upon 14 days prior written notice. 

  
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 (g) Termination by the Executive for Good Reason. The Executive may terminate the
Executive’s employment for Good Reason. For purposes of this Agreement, “Good Reason” means the existence of any one or more of the following conditions without the Executive’s consent, provided Executive submits written notice
to the Company within 45 days of when such condition(s) first arose specifying the condition(s): (i) a material change in the Executive’s title or reporting relationships (ii) a change in the Executive’s position with the Company
which materially reduces the Executive’s authority, duties or responsibilities, or the assignment to the Executive of duties materially inconsistent with the Executive’s position with the Company; (iii) a material reduction in the
Executive’s then current Base Salary; (iv) a relocation of Executive’s place of employment by more than 35 miles from San Diego, California; and (v) a material breach by the Company of this Agreement. The Executive’s
continued employment subsequent to an event that may constitute Good Reason shall not be deemed to be a waiver of the Executive’s rights under this provision (subject to the 45-day time period specified herein). Upon receipt of written notice
from the Executive regarding a condition constituting Good Reason, the Company shall then have 14 days to correct the condition (the “Cure Period”). If such condition is not corrected by the last day of the Cure Period, the
Executive’s resignation for Good Reason shall become effective on the 15th day following the Executive’s written notice specifying the events giving rise to a Good Reason termination.

 (h) Termination Date. The “Termination Date” means: (i) if relevant, the date specified in Section 4(a) of
this Agreement; (ii) if the Executive’s employment is terminated by the Executive’s death under Section 4(b), the date of the Executive’s death; (iii) if the Executive’s employment is terminated on account of
Disability under Section 4(c), the date on which the Company provides the Executive a written termination notice; (iv) if the Company terminates the Executive’s employment for Cause under Section 4(d), the date on which the
Company provides the Executive a written termination notice; (v) if the Company terminates the Executive’s employment without Cause under Section 4(e), 14 days after the date on which the Company provides the Executive a written
termination notice; and (vi) if the Executive resigns, 14 days after the date on which the Executive provides the Company a written termination notice or the date specified in Section 4(g) herein. 

(i) Actions on Termination Date. Executive agrees that on or before the Termination Date, Executive shall resign from all board and
officer positions with the Company and its subsidiaries and affiliates, and this Agreement shall constitute an agreement to so resign upon the effective date of Executive’s termination. 

5. Compensation upon Termination (Including Termination in Connection with Change in Control). 

(a) Termination by the Company for Death, Disability, Cause, by the Executive without Good Reason and by Expiration of the Term due to
Executive’s delivery to the Company of a Notice of Intent Not To Renew. If the Executive’s employment with the Company is terminated pursuant to Subsection 4(a) due to Executive’s delivery to the Company of a notice of intent not
to renew, or Subsections 4(b), (c), (d) or (f), the Company shall pay or provide to the Executive the following amounts through the Termination Date: any earned but unpaid Base Salary, unpaid expense reimbursements, and any vested benefits the
Executive may have under any employee benefit plan of the Company (the “Accrued Obligations”) on or before the time required by law but in no event more than 30 days after the Executive’s Termination Date. 

(b) Termination by the Company without Cause, or by the Executive with Good Reason, or due to the Company’s delivery to Executive of a
Notice of Intent Not To Renew. If, prior to the expiration of the Term, the Company delivers to Executive a notice of intent not to renew pursuant to section 4(a), the Executive’s employment is terminated by the Company without Cause
pursuant to Section 4(e), or the Executive terminates the Executive’s employment for Good Reason pursuant to Section 4(g), then the Executive shall be entitled to the following subject to Section 6: 

(i) The Company shall pay and provide the Executive with the Accrued Obligations; 

(ii) The Company shall pay the Executive any accrued but unpaid Bonus (or pro rata portion thereof), earned prior to the
Termination Date; 
 (iii) The Company shall pay for six (6) months of continuing health benefits coverage; 

  
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 (iv) The Company shall pay the Executive severance in an amount equal to six
(6) months of Base Salary at the rate in effect on the Termination Date (but without giving effect to any reduction if one or all of the bases for the Executive’s resignation for Good Reason is a reduction in Base Salary) in six
(6) equal monthly installments as set forth in Section 6 and subject to Section 7. 
 (c) Termination in Connection With a
Change in Control. In the event Executive is terminated without Cause or resigns with Good Reason within three months prior to or twelve months following the effective date of a Change in Control, the Company will (i) make a cash lump sum
payment to Executive equal to nine (9) months of Executive’s Base Salary and Target Bonus (at the rate in effect immediately prior to such termination), less applicable taxes and withholdings; and (ii) will cause all of
Executive’s equity interests in the Company then unvested and outstanding to fully vest and accelerate as of the Date of Termination (the “Change in Control Payments”), subject to Sections 6 and 7 of this Agreement. The Company shall
also reimburse Executive for the costs associated with Executive’s continued health benefits for a period of nine (9) months following the Date of Termination. 

(d) For purposes of this Agreement, “Change in Control” means the occurrence, in a single transaction or in a series of related
transactions occurring after the Commencement Date of any one or more of the following events: (1) any person or persons acting together becomes the owner, directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction; (2) there is consummated a merger, consolidation or similar transaction
involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either
(A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent
(50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their ownership of the outstanding voting
securities of the Company immediately prior to such transaction; or (3) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company during any twelve month
period, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are
owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition. Notwithstanding the above, to the
extent any payment under this Section on or following a Change in Control is deferred compensation that is subject to Section 409A of the Internal Revenue Code, and not otherwise exempt from complying with the provisions of the statute, then a
Change in Control shall only be deemed to occur if the Change in Control also qualifies as a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of a corporation’s assets as
defined in Treasury Regulation Section 1.409A-3(i)(5). No Change in Control will be deemed to occur because of a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 

6. Release; Payment. The payments and benefits provided for in Section 5(b)(ii) through (iv) or Section 5(c) shall be
conditioned on (a) the Executive’s continued compliance with the obligations of the Executive under Sections 8 and 9 and (b) the Executive or, in the event of the Executive’s death, the Executive’s estate, executing and
delivering to the Company a full release of all claims that the Executive, the Executive’s heirs and assigns may have against the Company, its affiliates and subsidiaries and each of their respective directors, officers, employees and agents,
in a form reasonably acceptable to the Company and the Executive (the “Release”). The Release must become enforceable and irrevocable on or before the sixtieth (60th) day following the Termination Date. If the Executive (or the
Executive estate) fails to execute without revocation the Release, the Executive shall be entitled to the Accrued Obligations only and no other benefits. The installments of severance provided under Section 5(b)(iv) shall commence in the
calendar month following the month in which the Release becomes enforceable and irrevocable. If, however, the sixty (60) day period in which the Release must become enforceable and irrevocable begins in one year and ends in the following year,
the Company shall commence payment of the severance installments in the second year in the later of January and the first calendar month following the month in which the Release becomes effective and irrevocable. The first installment shall include,
however, all amounts that would otherwise have been paid to the Executive between the Termination Date and the Executive’s receipt of the first installment, assuming the first installment would otherwise have been paid in the month following
the month in which the Termination Date occurs. The Pro-Rata Bonus payable in Section 5 shall be paid in accordance with the Company’s applicable Bonus Program. 

  
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 7. Section 409A Compliance. 

(a) All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by
the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable
year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other
taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 
 (b) To the
extent that any of the payments or benefits provided for in Section 5 are deemed to constitute non-qualified deferred compensation benefits subject to Section 409A of the Code, the following interpretations apply to Section 5: 

(i) Any termination of the Executive’s employment triggering payment of benefits under Section 5 must constitute a
“separation from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. § 1.409A-l(h) before distribution of such benefits can commence. To the extent that the termination of the Executive’s employment does not
constitute a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A- 1(h) (as the result of further services that are reasonably anticipated to be provided by the Executive to the Company or any of its
parents, subsidiaries or affiliates at the time the Executive’s employment terminates), any benefits payable under Section 5(b) that constitute deferred compensation under Section 409A of the Code shall be delayed until after the date
of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section 7(b)(i) shall not cause any forfeiture of benefits on the
Executive’s part, but shall only act as a delay until such time as a “separation from service” occurs. 
 (ii)
In the Executive is deemed a “specified employee” (as that term is used in Section 409A of the Code and regulations and other guidance issued thereunder) on the date the Executive’s separation from service becomes effective, any
benefits payable under Section 5(b) that constitute non-qualified deferred compensation under Section 409A of the Code shall be delayed until the earlier of (A) the business day following the six-month anniversary of the date the
Executive’s separation from service becomes effective, and (B) the date of the Executive’s death, but only to the extent necessary to avoid such penalties under Section 409A of the Code. On the earlier of (A) the business
day following the six-month anniversary of the date the Executive’s separation from service becomes effective, and (B) the Executive’s death, the Company shall pay the Executive in a lump sum the aggregate value of the non-qualified
deferred compensation that the Company otherwise would have paid the Executive prior to that date under Section 5 of this Agreement. 

(iii) It is intended that each installment of the payments and benefits provided under Section 5 of this Agreement shall
be treated as a separate “payment” for purposes of Section 409A of the Code. In particular, the installment severance payments set forth in Section 7(b)(ii) of this Agreement shall be divided into two portions. That number of
installments commencing on the first payment date set forth in Section 7 of this Agreement that are in the aggregate less than two times the applicable compensation limit under Section 401(a)(17) of the Code for the year in which the
Termination Date occurs (provided the termination of the Executive’s employment is also a separation from service) shall be payable in accordance with Treas. Reg. § 1.409A-l(b)(9)(iii) as an involuntary separation plan. The remainder of
the installments shall be paid in accordance with Sections 7(b)(i) and (ii) above. 

  
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 8. Confidentiality and Restrictive Covenants. 

(a) The Executive acknowledges that: 

(i) the Company is dependent on the efforts of a certain limited number of persons who have developed, or will be responsible
for developing the Company’s business; 
 (ii) the business in which the Company is engaged is intensely competitive and
that Executive’s employment by the Company will require that the Executive have access to and knowledge of nonpublic confidential information of the Company and the Company’s business, including, but not limited to, certain/all of the
Company’s products, plans for creation, acquisition or disposition of products or publications, strategic and expansion plans, formulas, research results, marketing plans, financial status and plans, budgets, forecasts, profit or loss figures,
distributors and distribution strategies, pricing strategies, improvements, sales figures, contracts, agreements, then existing or then prospective suppliers and sources of supply and customer lists, undertakings with or with respect to the
Company’s customers or prospective customers, and patient information, product development plans, rules and regulations, personnel information and trade secrets of the Company, all of which are of vital importance to the success of the
Company’s business (collectively, “Confidential Information”); 
 (iii) the direct or indirect disclosure of
any Confidential Information would place the Company at a serious competitive disadvantage and would do serious damage, financial and otherwise, to the Company’s business; 

(iv) by the Executive’s training, experience and expertise, the Executive’s services to the Company is special and
unique; and 
 (v) the covenants and agreements of the Executive contained in this Section 9 are essential to the
business and goodwill of the Company. 
 (b) Covenant Against Disclosure. All Confidential Information relating to the business is,
shall be and shall remain the sole property and confidential business information of the Company, free of any rights of the Executive. The Executive shall not make any use of the Confidential Information except in the performance of the
Executive’s duties hereunder and shall not disclose any Confidential Information to third parties, without the prior written consent of the Company. 

(c) Defend Trade Secrets Act Information. Executive acknowledges that, notwithstanding the foregoing limitations on the disclosure of
trade secrets, the Executive may not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a Federal, State or local government official,
either directly or indirectly, or to an attorney, and (ii) solely for the purpose of reporting or investigating a suspected violation of law, or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such
filing is made under seal. In addition, if Executive files a proceeding against the Company in connection with a report of a suspected legal violation, Executive may disclose the trade secret to the attorney representing Executive and use the trade
secret in the court proceeding, if Executive files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. 

(d) Return of Company Documents. On the Termination Date or on any prior date upon the Company’s written demand, the Executive
will return all memoranda, notes, lists, records, property and other tangible product and documents concerning the business, including all Confidential Information, in the Executive’s possession, directly or indirectly, that is in written or
other tangible form (together with all duplicates thereof) and that the Executive will not retain or furnish any such Confidential Information to any third party, either by sample, facsimile, film, audio or video cassette, electronic data, verbal
communication or any other means of communication. 

  
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 (e) Further Covenant. During the Term and through the second anniversary of the
Termination Date, the Executive shall not, directly or indirectly, take any of the following actions, and, to the extent the Executive owns, manages, operates, controls, is employed by or participates in the ownership, management, operation or
control of, or is connected in any manner with, any business, the Executive will use the Executive’s best efforts to ensure that such business does not take any of the following actions: 

(i) Persuade or attempt to persuade any customer of the Company to cease doing business with the Company, or to reduce the
amount of business any customer does with the Company; 
 (ii) Take any action that interferes with the Company’s
contracts or prospective contracts with its customers; or 
 (iii) Persuade or attempt to persuade any employee or
independent contractor of the Company to leave the service of the Company, or hire or engage, directly or indirectly, any individual who was an employee or independent contractor of the Company within one (1) year prior to the Executive’s
Termination Date. 
 (f) Enforcement. The Executive acknowledges and agrees that any breach by the Executive of any of the provisions
of this Section 8 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches or threatens to commit a breach of
any of the provisions of Section 8, the Company shall have the ability to seek the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and
remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity (including, without limitation, the recovery of damages): (i) the right and remedy to have the Restrictive
Covenants specifically enforced (without posting bond and without the need to prove damages) by any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants; and (ii) the right and remedy to require the Executive to account for and pay over to the Company
all compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by the Executive as the result of any transactions constituting a breach of the Restrictive Covenants, and the
Executive shall account for and pay over such Benefits to the Company and, if applicable, its affected subsidiaries and/or affiliates. The Executive agrees that in any action seeking specific performance or other equitable relief, the Executive will
not assert or contend that any of the provisions of this Section 8 are unreasonable or otherwise unenforceable. Other than a material breach of this Agreement, the existence of any claim or cause of action by the Executive, whether predicated
on this Agreement or otherwise, shall not constitute a defense to the enforcement of the Restrictive Covenants. 
 9. Intellectual
Property. 
 (a) Works for Hire. All creations, inventions, ideas, designs, software, copyrightable materials, trademarks, and
other technology and rights (and any related improvements or modifications), whether or not subject to patent or copyright protection (collectively, “Creations”), relating to any activities of the Company which were, are, or will be
conceived by the Executive or developed by the Executive in the course of the Executive’s employment or other services with the Company, whether conceived alone or with others and whether or not conceived or developed during regular business
hours, and if based on Confidential Information, after the termination of the Executive’s employment, shall be the sole property of the Company and, to the maximum extent permitted by applicable law, shall be deemed “works made for
hire” as that term is used in the United States Copyright Act. The Executive agrees to assign and hereby does assign to the Company all Creations conceived or developed from the start of this employment with the Company through to the
Termination Date, and after the Termination Date if the Creation incorporates or is based on any Confidential Information. 
 (b)
Assignment. To the extent, if any, that the Executive retains any right, title or interest with respect to any Creations delivered to the Company or related to the Executive’s employment with the Company, the Executive hereby grants to
the Company an irrevocable, paid-up, transferable, sub-licensable, worldwide right and license: (i) to modify all or any portion of such Creations, including, without limitation, the making of additions to or deletions from such Creations,
regardless of the medium (now or hereafter known) into which such Creations may be modified and regardless of the effect of such modifications on the integrity of such Creations; and (ii) to identify the Executive, or not to identify his, as
one or more authors of or contributors to such Creations or any portion thereof, whether or not such Creations or any portion thereof have been modified. The Executive further waives any “moral” rights, or other rights with respect to
attribution of authorship or integrity of such Creations that the Executive may have under any applicable law, whether under copyright, trademark, unfair competition, defamation, right of privacy, contract, tort or other legal theory. 

  
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 Notwithstanding the foregoing, pursuant to California Labor Code Section 2870, the foregoing
shall not apply to an invention that Executive developed entirely on the Executive’s own time without using the Company’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

 

	 	•	 	Relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company; or 

 

	 	•	 	Result from any work performed by the Executive for the Company. 

 (c) Disclosure. The
Executive will promptly inform the Company of any Creations the Executive conceives or develops during the Term. The Executive shall (whether during the Executive’s employment or after the termination of the Executive’s employment) execute
such written instruments and do other such acts as may be necessary in the opinion of the Company or its counsel to secure the Company’s rights in the Creations, including obtaining a patent, registering a copyright, or otherwise (and the
Executive hereby irrevocably appoints the Company and any of its officers as the Executive’s attorney in fact to undertake such acts in the Executive’s name). The Executive’s obligation to execute written instruments and otherwise
assist the Company in securing its rights in the Creations will continue after the termination of the Executive’s employment for any reason, the Company shall reimburse the Executive for any out-of-pocket expenses (but not attorneys’ fees)
the Executive incurs in connection with the Executive’s compliance with this Section 9(c). 
 10. Arbitration. 

(a) All disputes between Executive (and Executive’s successors, and assigns) and the Company (and its affiliates, subsidiaries,
shareholders, directors, officers, employees, agents, successors, attorneys, and assigns) relating in any manner to Executive’s employment or the termination of Executive’s employment, including, without limitation, all disputes arising
under this Agreement (“Arbitrable Claims”), shall be resolved by final and binding arbitration to the fullest extent permitted by law. Arbitrable Claims shall include, but are not limited to, contract (express or implied) and tort claims
of all kinds, as well as all claims based on any federal, state, or local law, statute, or regulation, excepting only claims under applicable workers’ compensation law and unemployment insurance claims. By way of example and not in limitation
of the foregoing, Arbitrable Claims shall include any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the California Fair Employment and Housing Act,
the Family Medical Leave Act as well as all claims under any applicable state or federal statute including but not limited to the California Labor Code, and any claims asserting wrongful termination, breach of contract, breach of the covenant of
good faith and fair dealing, negligent or intentional infliction of emotional distress, harassment, discrimination, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage,
fraud, defamation, invasion of privacy, all claims related to disability and all wage or benefit claims, including but not limited to claims for salary, bonuses, profit participation, commissions, stock, stock options, vacation pay, fringe benefits
or any form of compensation. Arbitration shall be final and binding upon the Parties and shall be the exclusive remedy for all Arbitrable Claims, except that the Parties may seek interim injunctive relief and other provisional remedies in court as
set forth in this Agreement. The Parties hereby waive any rights they may have to trial by jury or any other form of administrative hearing or procedure in regard to the Arbitrable Claims. 

(b) Claims shall be arbitrated in accordance with the then-existing National Rules for the Resolution of Employment Disputes of the American
Arbitration Association (“AAA Employment Rules”), as augmented by this Agreement. Arbitration shall be initiated as provided by the AAA Employment Rules, although the written notice to the other Party initiating arbitration shall also
include a statement of the claims asserted and all the facts upon which the claims are based. Either Party may bring an action in court to compel arbitration under this Agreement and to enforce an arbitration award. Otherwise, neither Party shall
initiate or prosecute any lawsuit or administrative action in any way related to any Arbitrable Claim. All arbitration hearings under this Agreement shall be conducted at the AAA office located in Los Angeles, California. The Federal Arbitration Act
shall govern the interpretation and enforcement of this Section. 

  
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 (c) All disputes involving Arbitrable Claims shall be decided by a single arbitrator. The
arbitrator shall be selected by mutual agreement of the Parties within 30 days of the effective date of the notice initiating the arbitration. If the Parties cannot agree on an arbitrator, then the complaining Party shall notify the AAA and request
selection of an arbitrator in accordance with the AAA Employment Rules. The arbitrator shall have only such authority to award equitable relief, damages, costs, and fees as a court would have for the particular claims asserted and any action of the
arbitrator in contravention of this limitation may be the subject of court appeal by the aggrieved Party. No other aspect of any ruling by the arbitrator shall be appealable, and all other aspects of the arbitrator’s ruling shall be final and
non-appealable. The arbitrator shall have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law. The arbitrator shall be required to issue a written arbitration
decision including the arbitrator’s essential findings, conclusions and a statement of award. The Company shall pay all arbitration fees in excess of what the Executive would have to pay if the dispute were decided in a court of law. The
arbitrator shall have exclusive authority to resolve all Arbitrable Claims, including, but not limited to, whether any particular claim is arbitrable and whether all or any part of this Agreement is void or unenforceable. 

(d) Exception for Injunctive Relief. Notwithstanding the foregoing, in order to provide for interim relief pending the finalization of
arbitration proceedings hereunder, nothing in this Section 19 shall prohibit the Parties from pursuing, a claim for interim injunctive relief, for other applicable provisional remedies, and/or for related attorneys’ fees in a court of
competent jurisdiction in order to prevent irreparable harm pending the conclusion of the arbitration. 
 (e) If for any reason all or part
of this arbitration provision is held to be invalid, illegal, or unenforceable in any respect under any applicable law or regulation in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other part of this
arbitration provision or any other jurisdiction, but this provision shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable part or parts of this arbitration provision had never been contained
herein, consistent with the general intent of the Parties, as evidenced herein, insofar as possible. 
 11. Indemnification.
Executive shall be entitled to the greater of indemnity under (a) the Company’s Certificate of Incorporation and Bylaws; and (b) California law, both of which survive the Termination Date. 

12. Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements between the parties concerning such subject matter. 
 13. Successors. This Agreement shall inure to
the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive’s death after the Executive’s termination of
employment but prior to the completion by the Company of all payments due to the Executive under this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to the
Executive’s death (or to the Executive’s estate, if the Executive fails to make such designation). The Company shall require any successor to the Company to expressly assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place. 
 14. Enforceability. If any
portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of
this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid
and enforceable to the fullest extent permitted by law. 
 15. Survival. The provisions of this Agreement shall survive the
termination of this Agreement and/or the termination of the Executive’s employment to the extent necessary to effectuate the terms contained herein. 

  
 -9- 

 16. Waiver. No waiver of any provision hereof shall be effective unless made in writing
and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term
or obligation or be deemed a waiver of any subsequent breach. 
 17. Notices. Any notices, requests, demands and other communications
provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at
the last address the Executive has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Board. 

18. Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized
representative of the Company. 
 19. Governing Law. This is a California contract and shall be construed under and be governed in
all respects by the laws of California for contracts to be performed in that State and without giving effect to the conflict of laws principles of California or any other State. In the event of any alleged breach or threatened breach of this
Agreement, the Executive hereby consents and submits to jurisdiction in the State of California. 
 20. Counterparts. This Agreement
may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document. 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above written. 

 

			
	COMPANY
		
	By:	 	/s/ Sabrina Martucci Johnson
		 	Sabrina Martucci Johnson
		 	CEO

  

	
	/s/ Mark Walters
	EXECUTIVE

  
 -10-$100,000,000

CREDIT
AGREEMENT

by and among

NEW JERSEY RESOURCES
CORPORATION,
as Borrower 

EACH OF THE GUARANTORS
PARTY HERETO,

THE LENDERS PARTY
HERETO

and 

U.S. BANK NATIONAL
ASSOCIATION,
as Agent 

 

Dated as of August 18,
2017 

TABLE OF
CONTENTS

	1.		CERTAIN DEFINITIONS	      	1
		      	1.1.		Certain Definitions		1
			1.2.		Construction		21
					1.2.1.	Number; Inclusion		21
				      	1.2.2.	Determination		22
					1.2.3.	Agent’s Discretion and Consent		22
					1.2.4.	Documents Taken as a Whole		22
					1.2.5.	Headings		22
					1.2.6.	Implied References to this
    Agreement		22
					1.2.7.	Persons		22
					1.2.8.	Modifications to Documents		22
					1.2.9.	From, To and Through		22
					1.2.10.      	Shall; Will		22
			1.3.		Accounting Principles		23
	2.		TERM LOAN		23
			2.1.		Commitments		23
			2.2.		Nature of Lenders’ Obligations with Respect
      to the Term Loan		23
			2.3.		[Reserved]		24
			2.4.		Term Loan Request		24
			2.5.		[Reserved]		24
			2.6.		Making the Term Loan; Presumptions by the
      Agent		24
					2.6.1.	Making the Term Loan		24
					2.6.2.	Presumptions by the Agent		24
			2.7.		[Reserved]		25
			2.8.		Use of Proceeds		25
			2.9.		[Reserved]		25
			2.10.		[Reserved]		25
			2.11.		[Reserved]		25
			2.12.		Defaulting Lenders		25
	3.		Intentionally Omitted		26
	4.		INTEREST RATES		26
			4.1.		Interest Rate Options		26
					4.1.1.	Interest Rate Options		26
					4.1.2.	Rate
      Quotations		27
					4.1.3.	Change in Interest Rates		27
			4.2.		Interest Periods		27
					4.2.1.	Amount of Borrowing Tranche		27
					4.2.2.	Renewals		27
			4.3.		Interest After Default		27
					4.3.1.	Interest Rate		28
					4.3.2.	Other Obligations		28
					4.3.3.	Acknowledgment		28
			4.4.		LIBOR Rate Unascertainable; Illegality;
      Increased Costs; Deposits Not Available		28
					4.4.1.	Unascertainable		28
					4.4.2.	Illegality; Increased Costs; Deposits Not
      Available		28
					4.4.3.	Agent’s and Lenders’ Rights		29
			4.5.		Selection of Interest Rate Options		29
	5.		PAYMENTS		29
			5.1.		Payments		29

		      	5.2.	      	Pro Rata Treatment of Lenders; Sharing of
      Payments; Agent’s Presumptions	      	30
					5.2.1.	      	Sharing of Payments by Lenders		30
					5.2.2.		Presumptions by the Agent		31
			5.3.		Interest Payment Dates		31
			5.4.		Prepayments		31
					5.4.1.		Voluntary Prepayments		31
					5.4.2.		Replacement of a Lender		32
					5.4.3.		Change of Lending Office		33
			5.5.		[Reserved]		33
			5.6.		Additional Compensation in Certain Circumstances		33
					5.6.1.		Increased Costs Generally		33
					5.6.2.		Capital Requirements		33
					5.6.3.		Certificates for Reimbursement; Repayment of Outstanding Loans;
      Borrowing of New Loans		34
					5.6.4.		Delay in Requests		34
					5.6.5.		Indemnity		34
			5.7.		Interbank Market Presumption		35
			5.8.		Taxes				35
					5.8.1.		Payments Free of Taxes		35
					5.8.2.		Payment of Other Taxes by the Loan
      Parties		35
					5.8.3.		Indemnification by the Loan Parties		35
					5.8.4.		Indemnification by the Lenders		36
					5.8.5.		Evidence of Payments		36
					5.8.6.		Status of Lenders		36
					5.8.7.		Treatment of Certain Refunds		38
					5.8.8.		Survival		38
			5.9.		Notes				38
	6.		REPRESENTATIONS AND WARRANTIES		38
			6.1.		Representations and Warranties		38
					6.1.1.		Organization and Qualification		39
					6.1.2.		Subsidiaries		39
					6.1.3.		Power and Authority		39
					6.1.4.		Validity and Binding Effect		39
					6.1.5.		No Conflict		39
					6.1.6.		Litigation		40
					6.1.7.		Title to Properties		40
					6.1.8.		Historical Statements; No Material Adverse Change		40
					6.1.9.		Use of Proceeds; Margin Stock		41
					6.1.10.		Full
      Disclosure		41
					6.1.11.		Taxes		41
					6.1.12.		Consents and Approvals		42
					6.1.13.		No Event of Default; Compliance With
      Instruments		42
					6.1.14.		Patents, Trademarks, Copyrights, Licenses, Etc.		42
					6.1.15.		Insurance		42
					6.1.16.		Compliance With Laws		42
					6.1.17.		Material Contracts; Burdensome
      Restrictions		42
					6.1.18.		Investment Companies; Regulated Entities		43
					6.1.19.		Plans and Benefit Arrangements		43
					6.1.20.		Employment Matters		44
					6.1.21.		Environmental Matters		44
					6.1.22.		Senior Debt Status		44

(ii) 

		      		      	6.1.23.		Reserved	      	44
					6.1.24.		[Reserved]		44
					6.1.25.		Anti-Terrorism Laws		44
	7.		CONDITIONS OF LENDING		45
			7.1.		Conditions to the Term Loan		45
					7.1.1.		Officer’s Certificate		45
					7.1.2.		Secretary’s Certificate		45
					7.1.3.		Opinion of Counsel		45
					7.1.4.		Legal Details		46
					7.1.5.		Loan
      Request		46
					7.1.6.		Consents		46
					7.1.7.		Officer’s Certificate Regarding MACs		46
					7.1.8.		No Violation of Laws		46
					7.1.9.		No
      Actions or Proceedings		46
					7.1.10.		Delivery of Guaranty Agreement		47
					7.1.11.		[Reserved]		47
					7.1.12.		Fees and Expenses		47
	8.		COVENANTS	      			47
			8.1.		Affirmative Covenants		47
					8.1.1.		Preservation of Existence, Etc.		47
					8.1.2.		Payment of Liabilities, Including Taxes,
      Etc.		47
					8.1.3.		Maintenance of Insurance		47
					8.1.4.		Maintenance of Properties and
    Leases		48
					8.1.5.		Maintenance of Patents, Trademarks, Etc.		48
					8.1.6.		Visitation Rights		48
					8.1.7.		Keeping of Records and Books of Account		48
					8.1.8.		Plans and Benefit Arrangements		48
					8.1.9.		Compliance With Laws		49
					8.1.10.		Use of Proceeds		49
					8.1.11.		Additional Financial Covenants		49
					8.1.12.		Anti-Terrorism Laws; International Trade Law
      Compliance		50
			8.2.		Negative Covenants		50
					8.2.1.		Indebtedness		50
					8.2.2.		Liens		51
					8.2.3.		Guaranties		51
					8.2.4.		Loans and Investments		52
					8.2.5.		Liquidations, Mergers, Consolidations,
      Acquisitions		52
					8.2.6.		Dispositions of Assets or Unregulated Subsidiaries		53
					8.2.7.		Affiliate Transactions		54
					8.2.8.		Subsidiaries, Partnerships and Joint Ventures		55
					8.2.9.		Continuation of or Change in
    Business		55
					8.2.10.		Plans and Benefit Arrangements		55
					8.2.11.		Fiscal Year		55
					8.2.12.		Maximum Leverage Ratio		55
					8.2.13.		Payment of Dividends; Redemptions		56
					8.2.14.		Off-Balance Sheet Financing		56
			8.3.		Reporting Requirements		56
					8.3.1.		Quarterly Financial Statements		56
					8.3.2.		Annual Financial Statements		57
					8.3.3.		Certificate of the Borrower		57
					8.3.4.		Notice of Default		57

(iii) 

		      		      	8.3.5.		Notice of Litigation	      	58
					8.3.6.		Notice of Change in Debt Rating		58
					8.3.7.		Sale of Assets		58
					8.3.8.		Budgets, Forecasts, Other Reports and Information		58
					8.3.9.		Notices Regarding Plans and Benefit
      Arrangements		58
					8.3.10.		Other Information		60
					8.3.11.		Electronic Delivery		60
	9.		DEFAULT				60
			9.1.		Events of Default		60
					9.1.1.		Payments Under Loan Documents		60
					9.1.2.		Breach of Warranty		60
					9.1.3.		Anti-Terrorism Laws		61
					9.1.4.		Breach of Negative Covenants, Visitation
      Rights or Borrower’s Existence		61
					9.1.5.		Breach of Other Covenants		61
					9.1.6.		Defaults in Other Agreements or
      Indebtedness		61
					9.1.7.		Final Judgments or Orders		61
					9.1.8.		Loan Document Unenforceable		62
					9.1.9.		Uninsured Losses; Proceedings Against Assets		62
					9.1.10.		Notice of Lien or Assessment		62
					9.1.11.		Insolvency		62
					9.1.12.		Events Relating to Plans and Benefit
      Arrangements		62
					9.1.13.		Cessation of Business		63
					9.1.14.		Change of Control		63
					9.1.15.		Involuntary Proceedings		63
					9.1.16.		Voluntary Proceedings		63
					9.1.17.		No
      Limitation on Dividends and Distributions by Subsidiaries		63
			9.2.		Consequences of Event of Default		64
					9.2.1.		Events of Default Other Than Bankruptcy, Insolvency or
      Reorganization Proceedings		64
					9.2.2.		Bankruptcy, Insolvency or Reorganization
      Proceedings		64
					9.2.3.		Set-off		64
					9.2.4.		Suits, Actions, Proceedings		65
					9.2.5.		Application of Proceeds; Collateral Sharing		65
					9.2.6.		Other Rights and Remedies		66
	10	.	THE AGENT				66
			10.1.		Appointment and Authority		66
			10.2.		Rights as a Lender		66
			10.3.		Exculpatory Provisions		66
			10.4.		Reliance by Agent		67
			10.5.		Delegation of Duties		67
			10.6.		Resignation of Agent		67
			10.7.		Non-Reliance on Agent and Other
      Lenders		68
			10.8.		[Reserved]		68
			10.9.		[Reserved]		68
			10.10. 		[Reserved]		68
			10.11.	 	Calculations		68
			10.12.	 	Beneficiaries		69
	11	.	MISCELLANEOUS		69
			11.1.		Modifications, Amendments or Waivers		69
					11.1.1.	      	Increase of Commitments; Extension of
      Maturity Date		69

(iv) 

	        		      	11.1.2.	      	Extension of Payment; Reduction of
      Principal, Interest or Fees; Modification of Terms of Payment	69
				11.1.3.		Release of Guarantor	69
				11.1.4.		Miscellaneous	70
		11.2.		No Implied Waivers; Cumulative Remedies; Writing Required	70
		11.3.		Expenses; Indemnity; Damage Waiver	70
				11.3.1.		Costs and Expenses	70
				11.3.2.		Indemnification by the Borrower	71
				11.3.3.		Reimbursement by Lenders	71
				11.3.4.		Waiver of Consequential Damages,
    Etc.	72
				11.3.5.		Payments	72
		11.4.		Holidays	72
		11.5.		Funding by Branch, Subsidiary or Affiliate	72
				11.5.1.		Notional Funding	72
				11.5.2.		Actual Funding	72
		11.6.		Notices; Lending Offices	73
		11.7.		Severability	74
		11.8.		Governing Law	74
		11.9.		Prior Understanding	74
		11.10.	 	Duration; Survival	74
		11.11.	 	Successors and
      Assigns	74
				11.11.1.		Successors and Assigns Generally	74
				11.11.2.		Assignments by Lenders	75
				11.11.3.		Register	76
				11.11.4.		Participations	76
				11.11.5.		Certain Pledges; Successors and Assigns
      Generally	77
		11.12.	 	Confidentiality	77
				11.12.1.		General	77
				11.12.2.		Sharing Information With Affiliates of the Lenders	78
		11.13.	 	Counterparts	78
		11.14.	 	[Reserved]	78
		11.15.		Exceptions	78
		11.16.		WAIVER OF JURY TRIAL	78
		11.17.		JURISDICTION & VENUE	79
		11.18.		USA
      Patriot Act Notice	79
		11.19.		Joinder of Guarantors	79
		11.20.		Keepwell	80
		11.21.		Anti-Money Laundering/International Trade Law
      Compliance	80
		11.22.		No
      Fiduciary Duty	81
		11.23.		Electronic Images of Loan Documents	81

(v) 

LIST OF SCHEDULES AND
EXHIBITS 

	SCHEDULES	      	
	 
	SCHEDULE 1.1(A)	-	[RESERVED]
	SCHEDULE 1.1(B)	-	COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES 
	SCHEDULE 1.1(P)	-	PERMITTED LIENS
	SCHEDULE 6.1.2	-	SUBSIDIARIES
	SCHEDULE 6.1.12	-	CONSENTS AND APPROVALS
	SCHEDULE 8.2.1	-	EXISTING INDEBTEDNESS
	 
	EXHIBITS		
	 
	EXHIBIT 1.1(A)	-	ASSIGNMENT AND ASSUMPTION AGREEMENT
	EXHIBIT 1.1(G)(1)	-	GUARANTOR JOINDER
	EXHIBIT 1.1(G)(2)	-	GUARANTY AGREEMENT
	EXHIBIT 1.1(R)	-	NOTE
	EXHIBIT 2.4	-	LOAN
      REQUEST
	EXHIBIT 5.8.6(A)	-	U.S.
      TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Not Partnerships
      For U.S. Federal Income Tax Purposes)
	EXHIBIT 5.8.6(B)	-	U.S.
      TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Not
      Partnerships For U.S. Federal Income Tax Purposes)
	EXHIBIT 5.8.6(C)	-	U.S.
      TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Partnerships
      For U.S. Federal Income Tax Purposes)
	EXHIBIT 5.8.6(D)	-	U.S.
      TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Partnerships For
      U.S. Federal Income Tax Purposes)
	EXHIBIT 7.1.3(A)	-	OPINION OF COUNSEL
	EXHIBIT 7.1.3(B)	-	OPINION OF IN-HOUSE COUNSEL
	EXHIBIT 8.2.5	-	ACQUISITION COMPLIANCE CERTIFICATE
	EXHIBIT 8.3.3	-	COMPLIANCE CERTIFICATE

CREDIT AGREEMENT

THIS CREDIT AGREEMENT is
dated as of August 18, 2017 and is made by and among NEW JERSEY RESOURCES
CORPORATION, a New Jersey corporation (the “Borrower”), EACH OF THE GUARANTORS (as hereinafter defined), the LENDERS (as
hereinafter defined) and U.S. BANK NATIONAL ASSOCIATION, in its capacity as
administrative agent for the Lenders under this Agreement (hereinafter referred
to in such capacity as the “Agent”). 

WITNESSETH: 

WHEREAS, the Borrower has
requested that the Lenders provide a term loan to the Borrower in an aggregate
principal amount of $100,000,000; 

WHEREAS, the term loan
shall be used for general corporate purposes of the Borrower; and 

WHEREAS, the Lenders are
willing to provide such term loan upon the terms and conditions hereinafter set
forth. 

NOW, THEREFORE, the parties
hereto, in consideration of their mutual covenants and agreements hereinafter
set forth and intending to be legally bound hereby, covenant and agree as
follows: 

1.
CERTAIN
DEFINITIONS

1.1. Certain Definitions. 

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

“Acquired Person” shall mean a Person or business acquired by any
Loan Party in a transaction which is a Permitted Acquisition. 

“Acquisition Compliance Certificate” shall have the meaning assigned to such term in
Section 8.2.5 [Liquidations, Mergers, Consolidations,
Acquisitions]. 

“Affiliate” as to any Person shall mean any other Person (i) which directly or
indirectly controls, is controlled by, or is under common control with such
Person, (ii) which beneficially owns or holds 10% or more of any class of the
voting or other equity interests of such Person, or (iii) 10% or more of any
class of voting interests or other equity interests of which is beneficially
owned or held, directly or indirectly, by such Person. Control, as used in this
definition, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise, including
the power to elect a majority of the directors or trustees of a corporation or
trust, as the case may be. 

“Agent” shall mean U.S. Bank National Association, in its capacity as
administrative agent as described herein, and its successors and assigns.

“Agreement” shall mean this Credit Agreement, as the same may be supplemented or
amended from time to time, including all schedules and exhibits. 

“Anti-Terrorism Laws” shall mean any Laws relating to terrorism, trade
sanctions programs and embargoes, import/export licensing, money laundering or
bribery, and any regulation, order, or directive promulgated, issued or enforced
pursuant to such Laws, all as amended, supplemented or replaced from time to
time. 

“Applicable Margin” shall mean, (i) with respect to the Base Rate
Option, 0.00% and (ii) with respect to the LIBOR Rate Option, 0.70%.

“Approved Fund” shall mean, with respect to any Lender, any fund
that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is
administered or managed by such Lender, an Affiliate of such Lender or an entity
or an Affiliate of an entity that administers or manages such Lender.

“Assignment and Assumption
Agreement” shall mean an
Assignment and Assumption Agreement by and among a Purchasing Lender, a
Transferor Lender and the Agent, as Agent and on behalf of the remaining
Lenders, substantially in the form of Exhibit 1.1(A).

“Audited Financial Statements” shall have the meaning assigned to such term in
Section 6.1.8.1 [Historical Statements]. 

“Authorized Officer” shall mean those individuals, designated by
written notice to the Agent from the Borrower, authorized to execute notices,
reports and other documents on behalf of the Loan Parties required hereunder.
The Borrower may amend such list of individuals from time to time by giving
written notice of such amendment to the Agent. 

“Base Rate” shall mean, for any day, a rate of interest per annum equal to the
highest of (i) 0.0%, (ii) the Prime Rate for such day, (iii) the sum of the
Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the
LIBOR Rate for a one month Interest Period on such day (or if such day is not a
Business Day, the immediately preceding Business Day) for Dollars plus 1.00%;
provided that, for the avoidance of doubt, the LIBOR Rate
for any day shall be based on the rate reported by the applicable financial
information service at approximately 11:00 a.m. London time on such day.

“Base Rate Option” shall mean the option of the Borrower to have
any portion of the Term Loan bear interest at the rate and under the terms and
conditions set forth in Section 4.1.1(i) [Base Rate Option]. 

“Benefit Arrangement” shall mean at any time an “employee benefit
plan,” within the meaning of Section 3(3) of ERISA, which is neither a Plan, a
Multiple Employer Plan, nor a Multiemployer Plan and which is maintained,
sponsored or otherwise contributed to by any member of the ERISA Group.

“Borrower” shall mean New Jersey Resources Corporation, a corporation organized
and existing under the laws of the State of New Jersey. 

“Borrowing Date” shall mean (i) the Closing Date and (ii) any
date for the renewal or conversion of the Term Loan or any portion thereof at or
to the same or a different Interest Rate Option, which shall be a Business Day.

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

2 

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

“Change in Law” shall mean the occurrence, after the date of
this Agreement (or with respect to any Lender, if later, the date on which such
Lender becomes a Lender), of any of the following: (a) the adoption or taking
effect of any Law, (b) any change in any Law or in the administration,
interpretation, implementation or application thereof by any Official Body or
(c) the making or issuance of any request, rule, guideline or directive (whether
or not having the force of Law) by any Official Body or the compliance therewith
by any Lender (or, for purposes of Section 5.6.2 [Capital Requirements], any
lending office of such Lender or such Lender’s holding company, if any);
provided that notwithstanding anything herein to the
contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, regulations, guidelines, interpretations or directives
thereunder or issued in connection therewith (whether or not having the force of
Law) and (y) all requests, rules, regulations, guidelines, interpretations or
directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory authorities (whether or not having the force
of Law), in each case pursuant to Basel III, shall in each case be deemed to be
a Change in Law regardless of the date enacted, adopted, issued, promulgated or
implemented. 

“Closing Date” shall mean the date on which the conditions
specified in Section 7.1 are satisfied (or waived in accordance with Section
11.1). 

“Commitment” shall mean, as to any Lender at any time, the amount initially set
forth opposite its name on Schedule 1.1(B) in the
column labeled “Amount of Commitment,” and Commitments shall mean the aggregate Commitments of all of the Lenders. 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1
et seq.), as amended from time to time, and any successor statute. 

“Compliance Certificate” shall have the meaning assigned to such term in
Section 8.3.3 [Certificate of the Borrower]. 

“Connection Income Taxes” shall mean Other Connection Taxes that are
imposed on or measured by net income (however denominated) or that are franchise
Taxes or branch profits Taxes. 

“Consolidated Shareholders’ Equity” shall mean as of any date of determination the
sum of the amounts of common shareholders’ equity and preferred shareholders’
equity on the balance sheet, prepared in accordance with GAAP, for the Borrower
and its Subsidiaries on a consolidated basis as of such date of determination.

“Consolidated Total Capitalization” shall mean as of any date of determination the
sum of (i) Consolidated Total Indebtedness, plus (ii) Consolidated Shareholders’
Equity. 

“Consolidated Total Indebtedness” shall mean as of any date of determination total
Indebtedness (excluding non-recourse Indebtedness of Project Subsidiaries),
without duplication, of the Borrower and its Subsidiaries. 

3 

“Contamination” shall mean the presence or release or threat of
release of Regulated Substances in, on, under or migrating to or from the
Property, which pursuant to Environmental Laws requires notification or
reporting to an Governmental Body, or which pursuant to Environmental Laws
requires the performance of a Remedial Action or which otherwise constitutes a
violation of Environmental Laws. 

“Covered Entity” shall mean (a) the Borrower, each of Borrower’s
Subsidiaries and all Guarantors, and (b) each Person that, directly or
indirectly, is in control of a Person described in clause (a) above. For
purposes of this definition, control of a Person shall mean the direct or
indirect (x) ownership of, or power to vote, 25% or more of the issued and
outstanding equity interests having ordinary voting power for the election of
directors of such Person or other Persons performing similar functions for such
Person, or (y) power to direct or cause the direction of the management and
policies of such Person whether by ownership of equity interests, contract or
otherwise. 

“Debt Rating” shall mean the rating of New Jersey Natural Gas’s senior secured
long-term debt by each of Standard & Poor’s and Moody’s; provided, however, at the option of the Borrower from time to time
and with the consent of the Agent which will not be unreasonably withheld or
delayed, either or both Standard & Poor’s and Moody’s shall be replaced by
Fitch, Inc. or any other nationally recognized statistical rating agency that is
then rating New Jersey Natural Gas’ senior secured Indebtedness. 

“Defaulting Lender” shall mean any Lender that (a) has failed,
within two Business Days of the date required to be funded or paid, to (i) fund
any portion of its portion of the Term Loan or (ii) pay over to the Agent or any
Lender any other amount required to be paid by it hereunder, unless, in the case
of clause (i) above, such Lender notifies the Agent in writing that such failure
is the result of such Lender’s good faith determination that a condition
precedent to funding (specifically identified and including the particular
default, if any) has not been satisfied, (b) has notified the Borrower or the
Agent in writing, or has made a public statement to the effect, that it does not
intend or expect to comply with any of its funding obligations under this
Agreement (unless such writing or public statement indicates that such position
is based on such Lender’s good faith determination that a condition precedent
(specifically identified and including the particular default, if any) to
funding a loan under this Agreement cannot be satisfied) or generally under
other agreements in which it commits to extend credit, (c) has failed, within
two Business Days after request by the Agent, acting in good faith, to provide a
certification in writing from an authorized officer of such Lender that it will
comply with its obligations (and is financially able to meet such obligations)
to fund its portion of the Term Loan under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this
clause (c) upon the Agent’s receipt of such certification in form and substance
satisfactory to the Agent, or (d) has become the subject of a Bankruptcy Event,

As used in this definition
and in Section 2.12 [Defaulting Lenders], the term “Bankruptcy Event” means,
with respect to any Person, such Person or such Person’s direct or indirect
parent company becomes the subject of a bankruptcy or insolvency proceeding, or
has had a receiver, conservator, trustee, administrator, custodian, assignee for
the benefit of creditors or similar Person charged with the reorganization or
liquidation of its business appointed for it, or, in the good faith
determination of the Agent, has taken any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any such proceeding
or appointment, provided that a Bankruptcy
Event shall not result solely by virtue of any ownership interest, or the
acquisition of any ownership interest, in such Person or such Person’s direct or
indirect parent company by an Governmental Body or instrumentality thereof if,
and only if, such ownership interest does not result in or provide such Person
with immunity from the jurisdiction of courts within the United States or from
the enforcement of judgments or writs of attachment on its assets or permit such Person (or
such Governmental Body or instrumentality) to reject, repudiate, disavow or
disaffirm any contracts or agreements made by such Person. 

4 

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

“ECP” means an “eligible contract participant” as defined in Section 1(a)(18)
of the Commodity Exchange Act or
any regulations promulgated thereunder and the applicable rules issued by the
Commodity Futures Trading Commission and/or the SEC. 

“Environmental Complaint” shall mean any (i) written notice of
non-compliance or violation, citation or order relating in any way to any
Environmental Law, Environmental Permit, Contamination or Regulated Substance;
(ii) civil, criminal, administrative or regulatory investigation instituted by
an Governmental Body relating in any way to any Environmental Law, Environmental
Permit, Contamination or Regulated Substance; (iii) administrative, regulatory
or judicial action, suit, claim or proceeding instituted by any Person or
Governmental Body or any other written notice of liability or potential
liability from any Person or Governmental Body, in either instance, relating to
or setting forth allegations or a cause of action for personal injury (including
but not limited to death), property damage, natural resource damage,
contribution or indemnity for the costs associated with the performance of
Remedial Actions, direct recovery for the costs associated with the performance
of Remedial Actions, liens or encumbrances attached to or recorded or levied
against property for the costs associated with the performance of Remedial
Actions, civil or administrative penalties, criminal fines or penalties or
declaratory or equitable relief arising under any Environmental Laws; or (iv)
subpoena, request for information or other written notice or demand of any type
issued by an Governmental Body pursuant to any Environmental Laws. 

“Environmental Laws” shall mean all federal, tribal, state, local and
foreign Laws (including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Toxic Substances
Control Act, 15 U.S.C. § 2601 et seq., the Federal Water Pollution Control Act,
33 U.S.C. §§ 1251 et seq., the Federal Safe Drinking Water Act, 42 U.S.C. §§
300f-300j, the Federal Air Pollution Control Act, 42 U.S.C. § 7401 et seq., the
Oil Pollution Act, 33 U.S.C. § 2701 et seq., the Federal Insecticide, Fungicide
and Rodenticide Act, 7 U.S.C. §§ 136 to 136y, the Occupational Safety and Health
Act, 29 U.S.C. § 651 et seq., each as amended, and any regulations promulgated
or any equivalent state or local Law, and any amendments thereto) and any final,
non-appealable consent decrees, consent orders, consent agreements, settlement
agreements, judgments or orders, or binding directives, policies or programs,
issued by or entered into with an Governmental Body pertaining or relating to:
(i) pollution or pollution control; (ii) protection of human health from
exposure to Regulated Substances; (iii) protection of the environment and/or
natural resources; (iv) protection of employee safety in the workplace and
protection of employees from exposure to Regulated Substances in the workplace
(but excluding workers compensation and wage and hour Laws); (v) the presence,
use, management, generation, manufacture, processing, extraction, treatment,
recycling, refining, reclamation, labeling, sale, transport, storage,
collection, distribution, disposal or release or threat of release of Regulated
Substances; (vi) the presence of Contamination; (vii) the protection of
endangered or threatened species; and (viii) the protection of Environmentally
Sensitive Areas. 

“Environmental Permits” shall mean all permits, licenses, bonds or other
forms of financial assurances, waivers, exemptions, consents, registrations,
identification numbers, approvals or authorizations required under Environmental
Laws (i) to own, occupy or maintain the Property; (ii) for the operations and business
activities of any Loan Party; or (iii) for the performance of a Remedial Action. 

5 

“Environmentally Sensitive Area” shall mean (i) any wetland as defined by
applicable Environmental Laws; (ii) any area designated as a coastal zone
pursuant to applicable Laws, including Environmental Laws; (iii) any area of
historic or archeological significance or scenic area as defined or designated
by applicable Laws, including Environmental Laws; (iv) habitats of endangered
species or threatened species as designated by applicable Laws, including
Environmental Laws; or (v) a floodplain or other flood hazard area as defined
pursuant to any applicable Laws. 

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

“ERISA Group” shall mean the Borrower and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control and all other entities which, together with the Borrower, are
treated as a single employer under Section 414 of the Internal Revenue Code.

“Event of Default” shall mean any of the events described in
Section 9.1 [Events of Default] and referred to therein as an “Event of
Default.” 

“Excluded Swap Obligation” means, means, with respect to any Guarantor, any
Specified Swap Obligation if, and only to the extent that, all or a portion of
the Guarantee of such Guarantor of, or the grant by such Guarantor of a security
interest to secure, such Specified Swap Obligation (or any guarantee thereof) is
or becomes illegal under the Commodity Exchange Act or any rule, regulation or
order of the Commodity Futures Trading Commission (or the application or
official interpretation of any thereof), including by virtue of such Guarantor’s
failure for any reason to constitute an “eligible contract participant” as
defined in the Commodity Exchange Act and the regulations thereunder at the time
the Guarantee of such Guarantor or the grant of such security interest becomes
effective with respect to such Specified Swap Obligation. If a Specified Swap
Obligation arises under a master agreement governing more than one swap, such
exclusion shall apply only to the portion of such Swap Obligation that is
attributable to swaps for which such Guarantee or security interest is or
becomes illegal. 

“Excluded Taxes” shall mean any of the following Taxes imposed on
or with respect to a Recipient or required to be withheld or deducted from a
payment to a Recipient, (i) Taxes imposed on or measured by net income (however
denominated), franchise Taxes, and branch profits Taxes, in each case, (a)
imposed as a result of such Recipient being organized under the laws of, or
having its principal office or, in the case of any Lender, its applicable
lending office located in, the jurisdiction imposing such Tax (or any political
subdivision thereof) or (b) that are Other Connection Taxes, (ii) in the case of
a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for
the account of such Lender with respect to an applicable interest in the Term
Loan or Commitment pursuant to a law in effect on the date on which (a) such
Lender acquires such interest in such Term Loan or Commitment (other than
pursuant to an assignment request by the Borrower under Section 5.4.2
[Replacement of a Lender]) or (b) such Lender changes its lending office, except
in each case to the extent that, pursuant to Section 5.8 [Taxes], amounts with
respect to such Taxes were payable either to such Lender’s assignor immediately
before such Lender became a party hereto or to such Lender immediately before it
changed its lending office, (iii) Taxes attributable to such Recipient’s failure
to comply with Section 5.8.6 [Status of Lenders], and (iv) any U.S. federal
withholding Taxes imposed under FATCA (except to the extent imposed due to the
failure of the Borrower to provide documentation or information to the IRS).

6 

“FATCA” shall mean Sections 1471 through 1474 of the Internal Revenue Code, as
of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with) and any
current or future regulations or official interpretations thereof and any
agreements entered into pursuant to Section 1471(b)(1) of the Code. 

“Federal Funds Effective Rate” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) 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 (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it. 

“Foreign Lender” shall mean (a) if the Borrower is a U.S. Person,
a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S.
Person, a Lender that is resident or organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. 

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

“Governmental Body” shall mean any government, political
subdivision, agency or other body described in clause (a) or (b) of the
definition of “Official Body.” 

“Guarantor” shall mean each of the parties to this Agreement which is designated as
a “Guarantor” on the signature page hereof and each other Person which joins
this Agreement as a Guarantor after the date hereof pursuant to Section 11.19
[Joinder of Guarantors]; provided, however, that the Project Subsidiaries shall not be designated as a “Guarantor”
nor required to join this Agreement as a Guarantor pursuant to Section 11.19
[Joinder of Guarantors]. 

“Guarantor Joinder” shall mean a joinder by a Person as a Guarantor
under this Agreement, the Guaranty Agreement and the other Loan Documents in the
form of Exhibit
1.1(G)(1). 

“Guaranty” of any Person shall mean any obligation of such Person guaranteeing or
in effect guaranteeing any liability or obligation of any other Person in any
manner, whether directly or indirectly, including any agreement to indemnify or
hold harmless any other Person, any performance bond or other suretyship
arrangement and any other form of assurance against loss, except endorsement of
negotiable or other instruments for deposit or collection in the ordinary course
of business. 

“Guaranty Agreement” shall mean the Guaranty and Suretyship Agreement
in substantially the form of Exhibit 1.1(G)(2) executed
and delivered by each of the Guarantors to the Agent for the benefit of the
Lenders and the IRH Providers. 

“Hedging Contract Policies” shall mean the written internal policies and
procedures with respect to hedging or trading of gas contracts or other
commodity, hedging contracts of any kind, or any derivatives or other similar
financial instruments of the Borrower and its Subsidiaries, as in effect on the
date of this Agreement, a copy of which has been delivered to the Agent and each
Lender. 

“Hedge Liabilities” shall have the meaning assigned in the
definition of Lender Provided Interest Rate Hedge. 

7 

“Hedging Transaction” shall mean any transaction entered into by a
Loan Party or any of its Subsidiaries in accordance with the Hedging Contract
Policies, as the same may be amended, restated, modified, or supplemented from
time to time. 

“Historical Statements”
shall have the meaning assigned to such term in Section 6.1.8.1(a) [Historical
Statements]. 

“Hybrid Security” shall mean any of the following: (i) beneficial
interests issued by a trust which constitutes a Subsidiary of any Loan Party,
substantially all of the assets of which trust are unsecured Indebtedness of any
Loan Party or any Subsidiary of any Loan Party or proceeds thereof, and all
payments of which Indebtedness are required to be, and are, distributed to the
holders of beneficial interests in such trust promptly after receipt by such
trust, or (ii) any shares of capital stock or other equity interest that, other
than solely at the option of the issuer thereof, by their terms (or by the terms
of any security into which they are convertible or exchangeable) are, or upon
the happening of an event or the passage of time would be, required to be
redeemed or repurchased, in whole or in part, or have, or upon the happening of
an event or the passage of time would have, a redemption or similar payment.

“Impacted Interest Period” shall have the meaning assigned to such term in
the definition of “LIBOR Rate”. 

“Inactive Subsidiary” shall have the meaning given in Section 6.1.2
[Subsidiaries]. 

“Incorporated Covenant” shall have the meaning given in Section 8.1.11
[Additional NJR Note Agreements Financial Covenants]. 

“Indebtedness” shall mean, as to any Person at any time, any
and all indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint
or several) of such Person for or in respect of (without duplication unless
duplication is required pursuant to the NJR Note Agreements): (i) borrowed
money, (ii) amounts raised under or liabilities in respect of any note purchase
or acceptance credit facility, (iii) reimbursement obligations (contingent or
otherwise) under any letter of credit, currency swap agreement, interest rate
swap, cap, collar or floor agreement or other interest rate or currency exchange
rate management device, (iv) any other transaction (including forward sale or
purchase agreements, capitalized leases and conditional sales agreements) having
the commercial effect of a borrowing of money entered into by such Person to
finance its operations or capital requirements (but not including off-balance
sheet transactions which are addressed in Section 8.2.14 [Off-Balance Sheet
Financing] and trade payables and accrued expenses incurred in the ordinary
course of business which are not represented by a promissory note or other
evidence of indebtedness and which are not more than sixty (60) days past due),
(v) the net indebtedness, obligations and liabilities of such Person under any
Hedging Transaction to the extent constituting “indebtedness,” as determined in
accordance with GAAP, adjusted downward dollar for dollar for any related margin
collateral account balances maintained by such Person, (vi) any Guaranty of any
Hedging Transaction described in the immediately preceding clause (v), (vii) any
Guaranty of Indebtedness for borrowed money, (viii) any Hybrid Security
described in clause (i) of the definition of Hybrid Security, or (ix) the
mandatory repayment obligation of the issuer of any Hybrid Security described in
clause (ii) of the definition of Hybrid Security. 

“Indemnified Taxes” shall mean (i) Taxes, other than Excluded Taxes,
imposed on or with respect to any payment made by or on account of any
obligation of any Loan Party under any Loan Document, and (ii) to the extent not
otherwise described in the preceding clause (i), Other Taxes. 

8 

“Indemnitee” shall have the meaning specified in Section 11.3.2 [Indemnification by
the Borrower]. 

“Insolvency Proceeding” shall mean, with respect to any Person, (a) a
case, action or proceeding with respect to such Person (i) before any court or
any other Governmental Body under any bankruptcy, insolvency, reorganization or
other similar Law now or hereafter in effect, or (ii) for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of such Person or otherwise relating to the liquidation,
dissolution, winding-up or relief of such Person, or (b) any general assignment
for the benefit of creditors, composition, marshaling of assets for creditors,
or other, similar arrangement in respect of such Person’s creditors generally or
any substantial portion of its creditors; undertaken under any Law. 

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

“Interest Rate Hedge” shall mean an interest rate exchange, collar,
cap, swap, adjustable strike cap, adjustable strike corridor or similar
agreements entered into by the Loan Parties or their Subsidiaries in order to
provide protection to, or minimize the impact upon, the Borrower, any other Loan
Party and/or their Subsidiaries of increasing floating rates of interest
applicable to Indebtedness. 

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

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

“Investment” shall have the meaning assigned to such term in Section 8.2.4 [Loans
and Investments]. 

“IRH Provider” shall have the meaning assigned to such term in
Section 9.2.5.2 [Collateral Sharing]. 

“IRS” shall mean the United States Internal Revenue Service. 

“Labor Contracts” shall mean all employment agreements, employment
contracts, collective bargaining agreements and other agreements among any Loan
Party or Subsidiary of a Loan Party and unions representing employees of any
Loan Party or any such Subsidiary. 

9 

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

“Lender Provided Interest Rate
Hedge” shall mean an Interest
Rate Hedge which is provided by an IRH Provider and that meets the following
requirements: such Interest Rate Hedge (i) is documented in a standard
International Swap Dealer Association Agreement, (ii) provides for the method of
calculating the reimbursable amount of the provider’s credit exposure in a
reasonable and customary manner, and (iii) is entered into for hedging (rather
than speculative) purposes. The liabilities of the Loan Parties to the provider
of any Lender Provided Interest Rate Hedge (the “Hedge Liabilities”) shall be “Obligations” hereunder, guaranteed
obligations under the Guaranty Agreement and otherwise treated as Obligations
for purposes of each of the other Loan Documents. Any Liens securing the Hedge
Liabilities shall be pari passu with any Liens securing all other Obligations under this Agreement and
the other Loan Documents, subject to the express provisions of Section 9.2.5.1
[Application of Proceeds]. 

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

“LIBOR Rate” shall mean, with respect to any portion of the Term Loan comprising any
Borrowing Tranche to which the LIBOR Rate Option applies for any Interest
Period, the interest rate per annum determined by dividing (the resulting
quotient rounded upwards, to the nearest 1/100th of 1% per annum) (i) the
greater of (a) zero percent (0.0%) and (b) the applicable interest settlement
rate for deposits in Dollars administered by ICE Benchmark Administration (or
any other Person that takes over the administration of such rate) appearing on
the applicable Reuters Screen (or any successor or substitute page of such
screen) as of 11:00 a.m. (London Time) on the date two (2) Business Days prior
to the first day of such Interest Period (or on any successor or substitute page
on such screen) and having a maturity equal to such Interest Period, provided
that, if the applicable Reuters Screen (or any successor or substitute page) is
not available to the Agent for any reason, the LIBOR Rate shall instead be the
applicable interest settlement rate for deposits in Dollars administered by ICE
Benchmark Administration (or any other Person that takes over the administration
of such rate) as reported by any other generally recognized financial
information service selected by the Agent as of 11:00 a.m. (London time) on the
date two (2) Business Days prior to the first day of such Interest Period, and
having a maturity equal to such Interest Period, provided that, if no such
interest settlement rate administered by ICE Benchmark Administration (or any
other Person that takes over the administration of such rate) is available to
Agent, the applicable LIBOR Rate for the relevant Interest Period shall instead
be the rate determined by the Agent to be the rate at which U.S. Bank or one of
its Affiliate banks offers to place deposits in Dollars with first-class banks
in the interbank market at approximately 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such Interest Period, in the approximate
amount of such portion of the Term Loan and having a maturity equal to such
Interest Period by (ii) a number equal to 1.00 minus the LIBOR Rate Reserve
Percentage. 

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

“LIBOR Rate Option” shall mean the option of the Borrower to have
any portion of the Term Loan bear interest at the rate and under the terms set
forth in Section 4.1.1(ii) [LIBOR Rate Option]. 

10 

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

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

“LLC Interests” shall have the meaning given to such term in
Section 6.1.2 [Subsidiaries]. 

“Loan Documents” shall mean this Agreement, the Guaranty
Agreement, the Notes (if any) and any other instruments, certificates or
documents delivered or contemplated to be delivered hereunder or thereunder or
in connection herewith or therewith, as the same may be supplemented or amended
from time to time in accordance herewith or therewith, and Loan Document shall mean any of the Loan Documents. 

“Loan Parties” shall mean the Borrower and the Guarantors.

“Loan Request” shall mean a request for the Term Loan or a
request to select, convert to or renew a Base Rate Option or LIBOR Rate Option
with respect to any portion of the outstanding Term Loan in accordance with
Sections 2.4 [Term Loan Requests], 4.1 [Interest Rate Options] and 4.2 [Interest
Periods]. 

“Material Adverse Change” shall mean any set of circumstances or events
which (i) has or could reasonably be expected to have any material adverse
effect whatsoever upon the validity or enforceability of this Agreement or any
other Loan Document, (ii) is or could reasonably be expected to be material and
adverse to the business, properties, assets, financial condition or results of
operations of the Loan Parties taken as a whole, (iii) impairs materially or
could reasonably be expected to impair materially the ability of the Loan
Parties taken as a whole to duly and punctually pay and perform the Obligations
in accordance with the Loan Documents, or (iv) impairs materially or could
reasonably be expected to impair materially the ability of the Agent or any of
the Lenders, to the extent permitted, to enforce their legal remedies pursuant
to this Agreement or any other Loan Document. 

“Maturity Date” shall mean August 16, 2019. 

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

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

“Mortgage Indenture” shall mean that certain Indenture of Mortgage
and Deed of Trust dated April 1, 1952 from New Jersey Natural Gas Company to BNY
Midwest Trust Company, as successor to Harris Trust
and Savings Bank, Trustee, as heretofore and hereafter amended, modified and
supplemented.

11 

“Multiemployer Plan” shall mean any “employee benefit plan” within
the meaning of Section 3(3) of ERISA, which is a “multiemployer plan” within the
meaning of Section 4001(a)(3) of ERISA and to which the Borrower or any member
of the ERISA Group is then making or accruing an obligation to make
contributions or, solely for the purposes of Section 6.1.19 [Plans and Benefit
Arrangements], within the preceding five Plan years, has made or had an
obligation to make such contributions. 

“Multiple Employer Plan” shall mean a Plan which has two or more
contributing sponsors (at least one of which is the Borrower or any member of
the ERISA Group) at least two of whom are not under common control, as such a
plan is described in Sections 4063 and 4064 of ERISA. 

“New Jersey Natural Gas” shall mean New Jersey Natural Gas Company, a
corporation organized and existing under the laws of the State of New Jersey,
which corporation is a Subsidiary of the Borrower. 

“NJNG Credit Agreement” shall mean that certain Credit Agreement, dated
as of May 15, 2014, among New Jersey Natural Gas, as the borrower, Wells Fargo
Bank, National Association as syndication agent and U.S. Bank National
Association, TD Bank, N.A. and Santander Bank, N.A. each as a documentation
agent, PNC Bank, National Association, as the administrative agent, and the
“lenders” party thereto, as the same has been amended and may be further
restated, amended, modified or supplemented from time to time. 

“NJR 2007 Note Agreement” shall mean the unsecured Note Purchase
Agreement, dated September 24, 2007, by and among the Borrower and the
purchasers party thereto, as the same may be restated, amended, modified or
supplemented from time to time. 

“NJR 2007 Notes” shall mean the unsecured Indebtedness issued by
the Borrower pursuant to the NJR 2007 Note Agreement. 

“NJR 2016 Note Agreement” shall mean the unsecured Note Purchase
Agreement, dated March 22, 2016, by and among the Borrower and the purchasers
party thereto, as the same may be restated, amended, modified or supplemented
from time to time. 

“NJR 2016 Notes” shall mean the unsecured Indebtedness issued by
the Borrower pursuant to the NJR 2016 Note Agreement. 

“NJR Note Agreements” shall mean, collectively, the NJR 2007 Note
Agreement, the NJR 2016 Note Agreement, the NJR Shelf Note Agreements and any
refinancings, renewals or replacements thereof, or other unsecured private
placement note agreements, permitted under Section 8.2.1(ix), (x) or (xiii) (as
applicable). 

“NJR Notes” shall mean, collectively, the NJR 2007 Notes, the NJR 2016 Notes, the
NJR Shelf Notes and any refinancings, renewals or replacements thereof, or other
unsecured private placement notes, permitted under Section 8.2.1(ix) or (x) (as
applicable). 

“NJR Shelf Note Agreements” shall mean each of the following: (a) the
unsecured $100,000,000 Shelf Note Purchase Agreement dated as of May 12, 2011,
by and between NJR and Metropolitan Life Insurance Company; and (b) the
unsecured $175,000,000 Shelf Note Purchase Agreement dated as of June
30, 2011, as amended by that certain First Amendment dated July 25, 2014, by and
between NJR and Prudential Investment Management, Inc., in each case, as the
same may be restated, amended, modified or supplemented from time to time. 

12 

“NJR Shelf Notes” shall mean the unsecured Indebtedness issued by
the Borrower pursuant to the NJR Shelf Note Agreements. 

“NJR Revolving Credit Agreement” shall mean that certain $425,000,000 Revolving
Credit Facility Amended and Restated Credit Agreement dated as of September 28,
2015, by and among the Borrower, the Guarantors party thereto, the “lenders”
party thereto and PNC Bank, National Association, as administrative agent, as
the same may be restated, amended, modified or supplemented from time to time.

“Non-Consenting Lender” has the meaning assigned to such term in Section
11.1.4 [Miscellaneous]. 

“Notes” shall mean any Note of the Borrower in the form of Exhibit 1.1(R) issued by the Borrower at the request of a Lender
pursuant to Section 5.9 [Notes] evidencing the Term Loan to such Lender,
together with all amendments, extensions, renewals, replacements, refinancings
or refundings thereof in whole or in part. 

“Notices” shall have the meaning assigned to such term in Section 11.6 [Notices,
Lending Offices]. 

“Obligations” shall mean any obligation or liability of any of the Loan Parties to
the Agent or any of the Lenders, howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or hereafter existing,
or due or to become due, under or in connection with this Agreement, any Notes
or any other Loan Document. “Obligations” shall include, to the extent set forth
in the definitions of “Lender Provided Interest Hedge” and “Other Lender
Provided Financial Service Product”, the liabilities to any Lender (or any
Affiliate thereof) under any Lender Provided Interest Rate Hedge and any Other
Lender Provided Financial Service Product; provided that the definition of “Obligations” shall not create any guaranty by
any Loan Party of (or grant of security interest by any Loan Party to support)
any Excluded Swap Obligations of such Loan Party for purposes of determining any
obligations of any Loan Party. 

“Official Body” shall mean (a) the government of the United
States of America or any other nation, or of any political subdivision thereof,
whether state or local, (b) any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank) and (c) any group or body charged
with setting regulatory capital rules or standards (including, without
limitation, the Financial Accounting Standards Board, the Bank for International
Settlements or the Basel Committee on Banking Supervision or any successor or
similar authority to any of the foregoing). 

“Other Connection Taxes” shall mean, with respect to any Recipient, Taxes
imposed as a result of such Recipient conducting or having conducted a
sufficient level of ongoing business or income-generating activity in the
jurisdiction imposing such Tax to subject it to tax generally on the income or
privilege of doing business or unretained earnings associated with such activity
(but, without broadening the scope of the foregoing, not including any Tax
imposed as a result of such Recipient having executed, delivered, become a party
to, performed its obligations under, received payments under, received or perfected a
security interest under, engaged in any other transaction pursuant to or
enforced any Loan Documents, or sold or assigned an interest in any Loan or Loan
Document).

13 

“Other Lender Provided Financial Service
Product” shall mean agreements or
other arrangements under which any Lender or Affiliate of a Lender provides any
of the following products or services to the Borrower: (a) credit cards, (b)
credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH
transactions, (f) cash management, including controlled disbursement, accounts
or services, or (g) foreign currency exchange. The liabilities of the Borrower
to the provider of any Other Lender Provided Financial Service Product shall be
“Obligations” for the purposes of Section 5.2.1 [Sharing of Payments by Lenders]
and any collateral security for the Obligations hereafter granted under the Loan
Documents. 

“Other Taxes” shall mean all present or future stamp, court or documentary,
intangible, recording, filing or similar Taxes that arise from any payment made
under, from the execution, delivery, performance, enforcement or registration
of, from the receipt or perfection of a security interest under, or otherwise
with respect to, any Loan Document, except any such Taxes that are Other
Connection Taxes imposed with respect to an assignment (other than an assignment
made pursuant to Section 5.4.2 [Replacement of a Lender]). 

“Participant” shall have the meaning assigned to such term in Section 11.11.4
[Participations]. 

“Partnership Interests” shall have the meaning given to such term in
Section 6.1.2 [Subsidiaries]. 

“Payment Office” shall mean the office of the Agent at Complex
Credits, 400 City Center, Oshkosh, WI 54901, or such other office as to which
the Agent may notify the other parties hereto. 

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

“Permitted Acquisitions” shall have the meaning assigned to such term in
Section 8.2.5 [Liquidations, Mergers, Consolidations, Acquisitions]. 

“Permitted Investments” shall mean: 

(i) direct obligations of
the United States of America or any agency or instrumentality thereof or
obligations backed by the full faith and credit of the United States of America
maturing in twelve (12) months or less from the date of acquisition; 

(ii) repurchase agreements
having a duration of not more than sixty (60) days that are collateralized by
full faith and credit obligations of the United States Government or obligations
guaranteed by the United States Government and its agencies; 

(iii) interests in
investment companies registered under the Investment Company Act of 1940, as
amended (or in a separate portfolio of such an investment company), that invest
primarily in full faith and credit obligations of the United States Government
or obligations guaranteed by the United States Government and its agencies and
repurchase agreements collateralized by such obligations; 

14 

(iv) time deposits with any
office located in the United States of the Lenders or any other bank or trust
company which is organized under the laws of the United States and has combined
capital, surplus and undivided profits of not less than $500,000,000 or with any
bank which is organized other than under the laws of the United States (y) the
commercial paper of which is rated at least A-1 by Standard & Poor’s and P-1
by Moody’s (or, if such commercial paper is rated only by Standard & Poor’s,
at least A-1 by Standard & Poor’s, or if such commercial paper is rated only
by Moody’s, at least P-1 by Moody’s) or (z) the long term senior debt of which
is rated at least AA by Standard & Poor’s and Aa2 by Moody’s (or, if such
debt is rated only by Standard & Poor’s, at least AA by Standard &
Poor’s, or if such debt is rated only by Moody’s, at least Aa2 by Moody’s);

(v) commercial paper having
a maturity of not more than one year from the date of such investment and rated
at least A-1 by Standard & Poor’s and P-1 by Moody’s (or, if such commercial
paper is rated only by Standard & Poor’s, at least A-1 by Standard &
Poor’s or, if such commercial paper is rated only by Moody’s, at least P-1 by
Moody’s); 

(vi) instruments held for
collection in the ordinary course of business; 

(vii) any equity or debt
securities or other form of debt instrument obtained in settlement of debts
previously contracted; 

(viii) any Investment held
on the Closing Date; 

(ix) Investments in
treasury stock of the Borrower; 

(x) Investments consisting
of prepaid expenses, pledges or deposits made in the ordinary course of
business; 

(xi) Investments arising
out of Hedging Agreements; 

(xii) Investments
consisting of non-cash consideration received in the form of securities, notes
or similar obligations in connection with sales, transfers or other dispositions
of assets not prohibited by this Agreement; 

(xiii) Investments in
Inactive Subsidiaries; and 

(xiv) any other form of
Investment by the Borrower or any of its Subsidiaries in any Person so long as
the consideration paid or exchanged by the Borrower, or any of its Subsidiaries,
for such investment (whether in cash or the value of payment-in-kind, with the
value of payment-in-kind as reasonably determined by the Borrower) does not
exceed $100,000,000 in the aggregate for all Investments permitted by this
clause (xi). 

“Permitted Liens” shall mean: 

(i) Liens for taxes,
assessments, or similar charges, incurred in the ordinary course of business and
which are not yet due and payable or are being contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
are maintained on such Person’s books, and which could not be reasonably
expected to result in a Material Adverse Change; 

(ii) Pledges or deposits
made in the ordinary course of business to secure payment of workmen’s
compensation, or to participate in any fund in connection with workmen’s
compensation, unemployment insurance,
old-age pensions or other social security programs or retirement plan
legislation;

15 

(iii) Liens of mechanics,
materialmen, warehousemen, carriers, or other Liens, securing obligations
incurred in the ordinary course of business other than Indebtedness that are not
yet due and payable or which could not be reasonably expected to result in a
Material Adverse Change; 

(iv) Liens of landlords on
fixtures, equipment and personal property located on premises leased in the
ordinary course of business; 

(v) Any Lien arising out of
judgments or awards but only to the extent that the creation of any such Lien
does not constitute an Event of Default under Section 9.1.7 [Final Judgments or
Orders]; 

(vi) Security interests in
favor of lessors of personal property, which property is the subject of a true
lease; 

(vii) (a) Good-faith
pledges or deposits made in the ordinary course of business to secure
performance of bids, tenders, contracts (other than for the repayment of
borrowed money) or leases, not in excess of the aggregate amount due thereunder,
or to secure statutory obligations, or surety, appeal, indemnity, performance or
other similar bonds required in the ordinary course of business, and (b)
required margin collateral account deposits made in the ordinary course in
connection with Hedging Transactions permitted by this Agreement; 

(viii) Encumbrances
consisting of zoning restrictions, easements, rights-of-way or other
restrictions on the use of real property and minor defects to title to real
property, none of which materially impairs the use of such property or the value
thereof; 

(ix) Liens on property
leased by any Loan Party or Subsidiary of a Loan Party securing obligations of
such Loan Party or Subsidiary to the lessor under capitalized leases or other
lease constituting Indebtedness, provided that to the extent the payments or
other amounts due and owing under any such lease constitute Indebtedness, such
Indebtedness is permitted under Section 8.2.1(iv) [Indebtedness]; 

(x) Liens existing on the
date of this Agreement and described on Schedule 1.1(P), provided that such
Liens secure only Indebtedness permitted by Section 8.2.1 [Indebtedness]
including any renewals or extensions of such Indebtedness permitted by Section
8.2.1 [Indebtedness]; 

(xi) Liens extending only
to assets related to off-balance sheet transactions permitted under Section
8.2.14 [Off-Balance Sheet Financing]; 

(xii) Purchase Money
Security Interests encumbering only the assets purchased and proceeds thereof;
provided that such Liens secure only Indebtedness permitted by Section
8.2.1(vii); 

(xiii) Liens on any
property or asset of an Acquired Person attaching solely to the assets of the
Acquired Person and not to any asset of any Loan Party, provided that such Liens
secure only Indebtedness permitted by Section 8.2.1(viii) and were not incurred
in contemplation of the acquisition of such Acquired Person; 

16 

(xiv) Liens in favor of the
trustee under any indenture (as provided for therein) on money or property held
or collected by the trustee thereunder in its capacity as such in connection
with the defeasance or discharge of Indebtedness thereunder; 

(xv) Liens created under
any agreement relating to the sale, transfer or other disposition of assets
permitted hereunder, provided that such Liens
relate solely to the assets subject to such sale, transfer or other
disposition;

(xvi) Liens existing on
assets subject to a sale/leaseback or other similar tax equity financing
arrangement permitted by Section 8.2.6(viii);

(xvii) Liens on the assets
of a Project Subsidiary; and 

(xviii) Other Liens
securing Indebtedness permitted under Section 8.2.1(xiii), provided that the aggregate principal amount of Indebtedness secured thereby does
not exceed $35,000,000 in the aggregate. 

Notwithstanding the
foregoing definition of Permitted Lien or any other provision of the Loan
Documents to the contrary, each of the Loan Parties shall not, and shall not
permit any of its Subsidiaries to, at any time create, incur, assume or suffer
to exist any consensual Lien on any of the capital stock of New Jersey Natural
Gas, or agree or become liable to do so. 

“Permitted Transferee” shall mean, as of any date of determination, any
of the following with respect to any then current officer or director of the
Borrower: (i) such Person’s spouse, lineal descendants or lineal descendants of
such Person’s spouse, (ii) any charitable corporation or trust established by
such officer or director or by any Person described in the immediately preceding
clause (i), (iii) any trust (or in the case of a minor, a custodial account
under a Uniform Gifts or Transfers to Minors Act) of which the beneficiary or
beneficiaries are one or more Persons described in the immediately preceding
clauses (i) or (ii), or (iv) any executor or administrator upon the death of
such officer or director or the death of any Person described in the immediately
preceding clauses (i) or (ii). 

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

“Plan” shall mean at any time an “employee pension benefit plan,” within the
meaning of Section (3)(2) of ERISA (not including a Multiple Employer Plan or a
Multiemployer Plan), which is covered by Title IV of ERISA or is subject to the
minimum funding standards under Section 412 of the Internal Revenue Code and
either (a) is maintained by any member of the ERISA Group for employees of any
member of the ERISA Group or (b) solely for purposes of Section 6.1.19 [Plans
and Benefit Arrangements], has at any time within the preceding five years been
maintained by any entity which was at such time a member of the ERISA Group for
employees of any entity which was at such time a member of the ERISA Group.

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

“Prime Rate” shall mean a rate per annum equal to the prime rate of interest
announced from time to time by U.S. Bank or its parent (which is not necessarily
the lowest rate charged to any customer), changing when and as said prime rate
changes. 

17 

“Prohibited Transaction” shall mean any prohibited transaction as defined
in Section 4975 of the Internal Revenue Code or Section 406 of ERISA for which
neither an individual nor a class exemption has been issued by the United States
Department of Labor. 

“Project Subsidiaries” shall mean the present Subsidiaries of NJR
Midstream Holdings Corporation, a New Jersey corporation, NJR Clean Energy
Ventures Corporation, a New Jersey corporation, and any other future asset
project Subsidiaries of the Borrower or of NJR Midstream Holdings Corporation,
NJR Clean Energy Ventures Corporation and their respective Subsidiaries;
provided, however, that any
Subsidiary of NJR Clean Energy Ventures Corporation which has guaranteed the NJR
Revolving Credit Agreement shall not constitute a Project Subsidiary so long as
such guarantee remains in effect. 

“Property” shall mean all real property, both owned and leased, of any Loan Party
or Subsidiary of a Loan Party. 

“Purchase Money Security Interest” shall mean Liens upon tangible personal property
securing loans to any Loan Party or Subsidiary of a Loan Party or deferred
payments by such Loan Party or Subsidiary for the purchase of such tangible
personal property. 

“Purchasing Lender” shall mean a Lender which becomes a party to
this Agreement by executing an Assignment and Assumption Agreement. 

“Qualified ECP Guarantor” means, in respect of any Specified Swap
Obligation, each Loan Party that has total assets exceeding $10,000,000 at the
time the relevant Guarantee or grant of the relevant security interest becomes
effective with respect to such Specified Swap Obligation or such other person as
constitutes an “eligible contract participant” under the Commodity Exchange Act
or any regulations promulgated thereunder and can cause another person to
qualify as an “eligible contract participant” at such time by entering into a
keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Quarterly Financial Statements” shall have the meaning assigned to such term in
Section 6.1.8.1 [Historical Statements]. 

“Ratable Share” shall mean the proportion that a Lender’s
Commitment bears to the Commitments of all of the Lenders, provided that in the case of Section 2.12 [Defaulting Lenders] when a Defaulting
Lender shall exist, “Ratable Share” shall mean the percentage of the aggregate
Commitments (disregarding any Defaulting Lender’s Commitment) represented by
such Lender’s Commitment. If the Commitments have terminated or expired, the
Ratable Share shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments. 

“Recipient” shall mean (i) the Agent and (ii) any Lender, as applicable.

“Regulated Entity” shall mean any Person which is subject under Law
to any of the laws, rules or regulations respecting the financial,
organizational or rate regulation of electric companies, public utilities, or
public utility holding companies. 

“Regulated Substances” shall mean, without limitation, any substance,
material or waste, regardless of its form or nature, defined under Environmental
Laws as a “hazardous substance,” “pollutant,” “pollution,” “contaminant,”
“hazardous or toxic substance,” “extremely hazardous substance,” “toxic
chemical,” “toxic substance,” “toxic waste,” “hazardous waste,” “special
handling waste,” “industrial waste,” “residual waste,” “solid waste,” “municipal
waste,” “mixed waste,” “infectious waste,”
“chemotherapeutic waste,” “medical waste,” or “regulated substance” or any other
substance, material or waste, regardless of its form or nature, which is
regulated, controlled or governed by Environmental Laws due to its radioactive,
ignitable, corrosive, reactive, explosive, toxic, carcinogenic or infectious
properties or nature or any other material, substance or waste, regardless of
its form or nature, which otherwise is regulated, controlled or governed by
Environmental Laws, including without limitation, petroleum and petroleum
products (including crude oil and any fractions thereof), natural gas, synthetic
gas and any mixtures thereof, asbestos, urea formaldehyde, polychlorinated
biphenlys, mercury, radon and radioactive materials.

18 

“Regulation U” shall mean Regulation U, T, or X as promulgated
by the Board of Governors of the Federal
Reserve System, as amended from time to time. 

“Related Parties” shall mean, with respect to any Person, such
Person’s Affiliates and the partners, members, directors, officers, employees,
agents, trustees, administrators, managers, advisors and representatives of such
Person and of such Person’s Affiliates. 

“Remedial Action” shall mean any investigation, identification,
characterization, delineation, cleanup, removal, remediation, containment,
control or abatement of or other response actions to Regulated Substances and
any closure or post-closure measures associated therewith. 

“Reportable Compliance Event” shall mean that any Covered Entity becomes a
Sanctioned Person, or is charged by indictment, criminal complaint or similar
charging instrument, arraigned, or custodially detained in connection with any
Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or has
knowledge of facts or circumstances to the effect that it is reasonably likely
that any aspect of its operations is in actual or probable violation of any
Anti-Terrorism Law. “Reportable Event” shall mean a reportable event described in
Section 4043 of ERISA and regulations thereunder with respect to a Plan,
Multiple Employer Plan which is covered under Title IV of ERISA or subject to
the minimum funding standards under Section 412 or 430 of the Internal Revenue
Code, or Multiemployer Plan. 

“Required Lenders” shall mean: 

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

(b) If there exist three
(3) or more Lenders, Lenders (other than any Defaulting Lender) having 51% or
more of the aggregate amount of the Commitments of the Lenders (excluding any
Defaulting Lender) or, after the termination of the Commitments, the outstanding
portion of the Term Loan (excluding any Defaulting Lender). 

“Sanctioned Country” shall have the meaning set forth in Section
11.21. 

“Sanctioned Person” shall have the meaning set forth in Section
11.21. 

“SEC” shall mean the Securities and Exchange Commission or any governmental
agencies substituted therefor. 

“SEC Filings” shall mean, as of the Closing Date, the Borrower’s Form 10-K, filed
with the SEC for the fiscal year ended September 30, 2016 and its Form 10-Q
filed with the SEC for the fiscal quarter ended June 30, 2017, and after the
Closing Date as of any date, the Borrower’s Form 10-K filed with the SEC for its most
recently ended fiscal year and its Forms 10-Q filed with the SEC for the fiscal
quarters ending after such most recently ended fiscal year through such
date.

19 

“Significant Subsidiary” shall mean, New Jersey Natural Gas, NJR Energy
Services Company, or any Subsidiary of the Borrower which at any time (i) has
gross revenues equal to or in excess of five percent (5%) of the gross revenues
of the Borrower and its Subsidiaries on a consolidated basis, or (ii) has total
assets equal to or in excess of five percent (5%) of the total assets of the
Borrower and its Subsidiaries on a consolidated basis, in either case, as
determined and consolidated in accordance with GAAP. 

“Solvent” shall mean, with respect to any Person on a particular date taking into
account any right of reimbursement, contribution or similar right available to
such Person from other Persons, that on such date (i) the fair value of the
property of such Person is greater than the total amount of liabilities,
including contingent liabilities, of such Person, (ii) the present fair saleable
value of the assets of such Person is not less than the amount that will be
required to pay the probable liability of such Person on its debts as they
become absolute and matured, (iii) such Person is able to realize upon its
assets and pay its debts and other liabilities as they mature in the normal
course of business, (iv) such Person has not incurred debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature, and
(v) such Person is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which such Person’s property would
constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged. In
computing the amount of contingent liabilities at any time, it is intended that
such liabilities will be computed at the amount which, in light of all the facts
and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability. 

“Specified Swap Obligation” means, with respect to any Guarantor, any
obligation to pay or perform under any agreement, contract or transaction that
constitutes a “swap” within the meaning of Section 1a(47) of the Commodity
Exchange Act between any Lender and one or more Swap Counterparties. 

“Standard & Poor’s” shall mean Standard & Poor’s Financial
Services LLC, a subsidiary of S&P Global Inc., and its successors.

“Swap Counterparty” means, with respect to any swap with a Lender,
any person or entity that is or becomes a party to such swap. 

“Swap Obligation” means, with respect to any Guarantor, any
obligation to pay or perform under any agreement, contract or transaction that
constitutes a “swap” within the meaning of Section 1a(47) of the Commodity
Exchange Act between any Lender and one or more Swap Counterparties. 

“Subsidiary” of any Person at any time shall mean (i) any corporation or trust of
which more than 50% (by number of shares or number of votes) of the outstanding
capital stock or shares of beneficial interest normally entitled to vote for the
election of one or more directors or trustees (regardless of any contingency
which does or may suspend or dilute the voting rights) is at such time owned
directly or indirectly by such Person or one or more of such Person’s
Subsidiaries, (ii) any partnership of which such Person is a general partner or
of which more than 50% of the partnership interests is at the time directly or
indirectly owned by such Person or one or more of such Person’s Subsidiaries,
(iii) any limited liability company of which such Person is a member or of which
more than 50% of the limited liability company interests is at the time directly
or indirectly owned by such Person or one or more of such Person’s Subsidiaries
or (iv) any corporation, trust, partnership, limited liability company or other
entity which is controlled or
capable of being controlled by such Person or one or more of such Person’s
Subsidiaries.

20 

“Subsidiary Shares” shall have the meaning assigned to such term in
Section 6.1.2 [Subsidiaries]. 

“Synthetic Lease” shall have the meaning assigned to such term in
Section 8.2.14 [Off-Balance Sheet Financing]. 

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

“Term Loan” shall mean the Term Loan made by the Lenders to the Borrower pursuant
to Section 2.1 [Term Loan]. The aggregate principal amount of the Term Loan
shall be $100,000,000. 

“Transferor Lender” shall mean the selling Lender pursuant to an
Assignment and Assumption Agreement. 

“Unregulated Subsidiary” shall mean any Subsidiary of the Borrower other
than New Jersey Natural Gas. 

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

“U.S. Bank” shall mean U.S. Bank National Association, a national banking
association, in its individual capacity, and its successors. 

“U.S. Person” shall mean any Person that is a “United States Person” as defined in
Section 7701(a)(30) of the Internal Revenue Code. 

“U.S. Tax Compliance Certificate” shall have the meaning assigned to such term in
Section 5.8.6 [Status of Lenders]. 

“Website Posting” shall mean assigned to such term in Section 11.6
[Notices; Lending Offices]. 

“Withholding Agent” shall mean any Loan Party and the Agent.

1.2.
Construction. 

Unless the context of this
Agreement otherwise clearly requires, the following rules of construction shall
apply to this Agreement and each of the other Loan Documents: 

1.2.1. Number; Inclusion. 

References to the plural
include the singular, the plural, the part and the whole; “or” has the inclusive
meaning represented by the phrase “and/or” and “including” has the meaning
represented by the phrase “including without limitation”; 

21 

1.2.2. Determination. 

References to
“determination” of or by the Agent or the Lenders shall be deemed to include
good-faith estimates by the Agent or the Lenders (in the case of quantitative
determinations) and good-faith beliefs by the Agent or the Lenders (in the case
of qualitative determinations) and such determination shall be conclusive absent
manifest error; 

1.2.3. Agent’s Discretion and Consent. 

Whenever the Agent or the
Lenders are granted the right herein to act in its or their sole discretion or
to grant or withhold consent such right shall be exercised in good faith;

1.2.4. Documents Taken as a Whole. 

The words “hereof,”
“herein,” “hereunder,” “hereto,” and similar terms in this Agreement or any
other Loan Document refer to this Agreement or such other Loan Document as a
whole and not to any particular provision of this Agreement or such other Loan
Document; 

1.2.5. Headings. 

The section and other
headings contained in this Agreement or such other Loan Document and the Table
of Contents (if any), preceding this Agreement or such other Loan Document are
for reference purposes only and shall not control or affect the construction of
this Agreement or such other Loan Document or the interpretation thereof in any
respect; 

1.2.6. Implied References to this
Agreement. 

Article, section,
subsection, clause, schedule and exhibit references are to this Agreement or
other Loan Document, as the case may be, unless otherwise specified; 

1.2.7. Persons. 

Reference to any Person
includes such Person’s successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Agreement or such other Loan
Document, as the case may be, and reference to a Person in a particular capacity
excludes such Person in any other capacity; 

1.2.8. Modifications to Documents. 

Reference to any agreement
(including this Agreement and any other Loan Document together with the
schedules and exhibits hereto or thereto), document or instrument means such
agreement, document or instrument as amended, modified, replaced, substituted
for, superseded or restated; 

1.2.9. From, To and Through. 

Relative to the
determination of any period of time, “from” means “from and including,” “to”
means “to but excluding,” and “through” means “through and including”; and

1.2.10. Shall; Will. 

References to “shall” and
“will” are intended to have the same meaning. 

22 

1.3. Accounting Principles. 

Except as otherwise
provided in this Agreement, all computations and determinations as to accounting
or financial matters and all financial statements to be delivered pursuant to
this Agreement shall be made and prepared in accordance with GAAP (including
principles of consolidation where appropriate), and all accounting or financial
terms shall have the meanings ascribed to such terms by GAAP; provided, however, that all accounting terms used in Section 8.2
[Negative Covenants] (and all defined terms used in the definition of any
accounting term used in Section 8.2 [Negative Covenants]) shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing the Annual
Statements referred to in Section 6.1.8.1 [Historical Statements].
Notwithstanding the foregoing, if the Borrower notifies the Agent in writing
that the Borrower wishes to amend any financial covenant in Section 8.2
[Negative Covenants] of this Agreement, any related definition and/or the
definition of the term Leverage Ratio for purposes of interest determinations to
eliminate the effect of any change in GAAP occurring after the Closing Date on
the operation of such financial covenants and/or interest determinations (or if
the Agent notifies the Borrower in writing that the Required Lenders wish to
amend any financial covenant in Section 8.2 [Negative Covenants], any related
definition and/or the definition of the term Leverage Ratio for purposes of
interest determinations to eliminate the effect of any such change in GAAP),
then the Agent, the Lenders and the Borrower shall negotiate in good faith to
amend such ratios or requirements to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders,
such approval not to be unreasonably delayed); provided that, until so amended, the Borrower’s compliance with such covenants
and/or the definition of the term Leverage Ratio for purposes of interest
determinations shall be determined on the basis of GAAP in effect immediately
before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenants or definitions are amended as contemplated above,
and the Borrower shall provide to the Agent, when it delivers its financial
statements pursuant to Section 8.3.1 [Quarterly Financial Statements] and
Section 8.3.2 [Annual Financial Statements] of this Agreement, such
reconciliation statements as shall be reasonably requested by the Agent.
Notwithstanding the foregoing, for purposes of calculating compliance with
Section 8.2.1 only, any lease (whether entered into before or after the Closing
Date) that would have been classified as an operating lease pursuant to GAAP as
in effect on the Closing Date will be deemed not to represent a capital lease
obligation. 

2.
TERM
LOAN 

2.1. Commitments. 

Subject to the terms and
conditions hereof and relying upon the representations and warranties herein set
forth, each Lender severally agrees to make its Ratable Share of the Term Loan
in Dollars to the Borrower on the third Business Day after the Closing Date. The
aggregate amount of each Lender’s portion of the Term Loan to be funded
hereunder shall never exceed such Lender’s Commitment. Any amount borrowed under
this Section 2.1 and subsequently repaid or prepaid may not be reborrowed. The
outstanding principal amount of the Term Loan, together with accrued interest
thereon, shall be due and payable on the Maturity Date. Each Lender’s Commitment
shall terminate immediately and without further action on the funding of such
Lender’s Commitment on such date. 

2.2. Nature of Lenders’ Obligations with Respect to the
Term Loan. 

Each Lender shall be
obligated to participate in the request for the Term Loan pursuant to Section
2.4 [Term Loan Request] in accordance with its Ratable Share. The obligations of
each Lender hereunder are several. The failure of any Lender to perform its
obligations hereunder shall not affect the Obligations of the Borrower
to any other party nor shall any other party be liable for the failure of such
Lender to perform its obligations hereunder.

23 

2.3. [Reserved]. 

2.4. Term Loan Request. 

Except as otherwise
provided herein, the Borrower may request the Lenders to make the Term Loan or
renew or convert the Interest Rate Option applicable to the Term Loan pursuant
to Section 4.2 [Interest Periods], by delivering to the Agent, not later than
10:00 a.m., New York time, (i) three (3) Business Days prior to the proposed
Borrowing Date with respect to the making of the portion of the Term Loan to
which the LIBOR Rate Option applies or the date of conversion to or the renewal
of the LIBOR Rate Option for any such portion of the Term Loan; and (ii) one (1)
Business Day prior to either the proposed Borrowing Date with respect to the
making of the portion of the Term Loan to which the Base Rate Option applies or
the last day of the preceding Interest Period with respect to the conversion to
the Base Rate Option for any such portion of the Term Loan, of a Loan Request
therefor duly completed by an Authorized Officer substantially in the form of
Exhibit 2.4 or a Loan Request by telephone immediately
confirmed in writing by letter, facsimile or telex in the form of such Exhibit,
it being understood that the Agent may rely on the authority of any individual
making such a telephonic request without the necessity of receipt of such
written confirmation, provided such individual purports to be an Authorized
Officer. Each Loan Request shall be irrevocable and shall specify (i) the
proposed Borrowing Date; (ii) the aggregate amount of the proposed portion of
the Term Loan comprising each Borrowing Tranche, the amount of which shall be in
integral multiples of $1,000,000 and not less than $3,000,000 for each Borrowing
Tranche to which the LIBOR Rate Option applies and not less than the lesser of
$1,000,000 and in integral multiples of $100,000 or the maximum amount available
for Borrowing Tranches to which the Base Rate Option applies; (iii) whether the
LIBOR Rate Option or Base Rate Option shall apply to the portion of the Term
Loan comprising the applicable Borrowing Tranche; and (iv) in the case of a
Borrowing Tranche to which the LIBOR Rate Option applies, an appropriate
Interest Period for the portion of the Term Loan comprising such Borrowing
Tranche. 

2.5. [Reserved]. 

2.6. Making the Term Loan; Presumptions by the
Agent.

2.6.1. Making the Term Loan. The Agent shall, promptly after receipt by it of
a Loan Request for or with respect to the Term Loan pursuant to Section 2.4
[Term Loan Requests], notify the Lenders of its receipt of such Loan Request
specifying: (i) the proposed Borrowing Date and the time and method of
disbursement of the Term Loan requested thereby; (ii) the amount and type of
each portion of the Term Loan and the applicable Interest Period (if any); and
(iii) the apportionment among the Lenders of the Term Loan as determined by the
Agent in accordance with Section 2.2 [Nature of Lenders’ Obligations etc.]. Each
Lender shall remit the principal amount of its portion of the Term Loan to the
Agent such that the Agent is able to, and the Agent shall, to the extent the
Lenders have made funds available to it for such purpose and subject to Section
7.1, fund the Term Loan to the Borrower in U.S. Dollars and immediately
available funds at the Payment Office prior to 2:00 p.m., New York time, on the
such Borrowing Date, provided that if any Lender fails to remit such funds to
the Agent in a timely manner, the Agent may elect in its sole discretion to fund
with its own funds such Lender’s portion of the Term Loan on such Borrowing
Date, and such Lender shall be subject to the repayment obligation in Section
2.6.2 [Presumptions by the Agent]. 

2.6.2. Presumptions by the Agent. Unless the Agent shall have received notice from
a Lender prior to the proposed date of the Term Loan that such Lender will not
make available to the Agent such Lender’s share
of the Term Loan, the Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.6.1 [Making the Term Loan]
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the Term Loan available to the Agent, then the applicable Lender and the
Borrower severally agree to pay to the Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the
date such amount is made available to the Borrower to but excluding the date of
payment to the Agent, at (i) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Effective Rate and a rate determined by the
Agent in accordance with banking industry rules on interbank compensation and
(ii) in the case of a payment to be made by the Borrower, the interest rate
applicable to the portion of the Term Loan under the Base Rate Option. If such
Lender pays its share of the Term Loan to the Agent, then the amount so paid
shall constitute such Lender’s portion of the Term Loan. Any prepayment by the
Borrower that shall duplicate a payment by such Lender shall be promptly
returned to the Borrower in immediately available funds or otherwise as shall be
determined by the Borrower and Agent. Any payment by the Borrower shall be
without prejudice to any claim the Borrower may have against a Lender that shall
have failed to make such payment to the Agent.

24 

2.7. [Reserved]. 

2.8. Use of Proceeds. 

The proceeds of the Loans
shall be used by the Borrower for general corporate
purposes (including Permitted Investments in any Loan Party or in any Project
Subsidiary) of the Borrower and in accordance with Section 8.1.10 [Use of
Proceeds], but in any event not to fund any operations in, finance any
investments or activities in, or, make any payments to, a Sanctioned Country or
Sanctioned Person in violation of any Anti-Terrorism Law. 

2.9. [Reserved]. 

2.10. [Reserved]. 

2.11.
[Reserved]. 

2.12. Defaulting Lenders. Notwithstanding any provision of this Agreement
to the contrary, if any Lender becomes a Defaulting Lender, then the following
provisions shall apply for so long as such Lender is a Defaulting Lender:

(i) the Commitment and
outstanding portion of the Term Loan of such Defaulting Lender shall not be
included in determining whether the Required Lenders have taken or may take any
action hereunder (including any consent to any amendment, waiver or other
modification pursuant to Section 11.1 [Modifications, Amendments or Waivers]);
provided, that this Section 2.12 shall not apply to the vote of a Defaulting
Lender to the extent provided in such Section 11.1 [Modifications, Amendments or
Waivers]. 

(ii) any payment of
principal, interest, fees or other amounts received by the Agent for the account
of such Defaulting Lender (whether voluntary or mandatory, at maturity, or
otherwise) or received by the Agent from a Defaulting Lender pursuant to Section
11.1 [Modifications, Amendments or Waivers] shall be applied at such time or
times as may be determined by the Agent as follows: first, to the payment of any
amounts owing by such Defaulting Lender to the Agent hereunder; second, as the
Borrower may request (so long as no Potential Default or Event of Default
exists), to the funding of any Loan in respect of which such Defaulting Lender
has failed to fund its portion thereof as required
by this Agreement, as determined by the Agent; third, to the payment of any
amounts owing to the Lenders as a result of any judgment of a court of competent
jurisdiction obtained by any Lender against such Defaulting Lender as a result
of such Defaulting Lender’s breach of its obligations under this Agreement;
fourth, so long as no Potential Default or Event of Default exists, to the
payment of any amounts owing to the Borrower as a result of any judgment of a
court of competent jurisdiction obtained by the Borrower against such Defaulting
Lender as a result of such Defaulting Lender's breach of its obligations under
this Agreement; fifth, if so determined by the Agent, distributed to the Lenders
other than the Defaulting Lender until the ratio of the outstanding portion of
the Term Loan equals such ratio immediately prior to the Defaulting Lender’s
failure to fund any portion of any Loans; and sixth, to such Defaulting Lender
or as otherwise directed by a court of competent jurisdiction; provided that if
such payment is a payment of the principal amount of any Loans in respect of
which such Defaulting Lender has not fully funded its appropriate share.

25 

3.
INTENTIONALLY
OMITTED 

4.
INTEREST
RATES 

4.1. Interest Rate Options. 

The Borrower shall pay
interest in respect of the outstanding unpaid principal amount of the Term Loan
as selected by it from the Base Rate Option or LIBOR Rate Option set forth below
applicable to the Term Loan, it being understood that, subject to the provisions
of this Agreement, the Borrower may select different Interest Rate Options and
different Interest Periods to apply simultaneously to portions of the Term Loan
comprising different Borrowing Tranches and may convert to or renew one or more
Interest Rate Options with respect to all or any portion of the Term Loan
comprising any Borrowing Tranche, provided that there shall
not be at any one time outstanding more than ten (10) Borrowing Tranches in the
aggregate among all the portions of the Term Loan. If at any time the designated
rate applicable to any portion of the Term Loan made by any Lender exceeds such
Lender’s highest lawful rate, the rate of interest on such Lender’s portion of
the Term Loan shall be limited to such Lender’s highest lawful rate.
Notwithstanding anything to the contrary set forth herein, if an Event of
Default or Potential Default exists and is continuing, the Borrower may not
request, convert to, or renew the LIBOR Rate Option for any portion of the Term
Loan and the Required Lenders may demand that all existing Borrowing Tranches
bearing interest under the LIBOR Rate Option shall be converted immediately to
the Base Rate Option, subject to the obligation of the Borrower to pay any
indemnity under Section 5.6.5 [Indemnity] in connection with such
conversion.

4.1.1. Interest Rate Options. 

The Borrower shall have the
right to select from the following Interest Rate Options applicable to the Term
Loan: 

(i) Base Rate Option: A fluctuating rate per annum (computed on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed)
equal to the Base Rate plus the Applicable Margin, such interest rate to change
automatically from time to time effective as of the effective date of each
change in the Base Rate and/or the Applicable Margin; or 

(ii) LIBOR Rate Option: A rate per annum (computed on the basis of a
year of 360 days and actual days elapsed) equal to the LIBOR Rate plus the
Applicable Margin, such interest rate to change automatically from time to time
as of the effective date of each change in the Applicable Margin. 

26 

4.1.2. Rate Quotations. 

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

4.1.3. Change in Interest Rates. 

If the Applicable Margin is
increased or reduced with respect to any period for which the Borrower has
already paid interest, the Agent shall recalculate the additional interest due
from or to the Borrower and shall, within fifteen (15) Business Days after the
Borrower notifies the Agent of such increase or decrease, give the Borrower and
the Lenders notice of such recalculation. 

4.1.3.1. Any additional
interest due from the Borrower shall be paid to the Agent for the account of the
Lenders on the next date on which an interest or fee payment is due;
provided, however, that if the Term
Loan is due and payable, such additional interest shall be paid promptly after
receipt of written request for payment from the Agent. 

4.1.3.2. Any interest
refund due to the Borrower shall be credited against payments otherwise due from
the Borrower on the next interest or fee payment due date or, if the Term Loan
has been repaid and the Lenders are no longer committed to lend under this
Agreement, the Lenders shall pay the Agent for the account of the Borrower such
interest refund not later than five Business Days after written notice from the
Agent to the Lenders. 

4.2. Interest Periods. 

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

4.2.1. Amount of Borrowing Tranche. 

the amount of each
Borrowing Tranche of any portion of the Term Loan to which a LIBOR Rate Option
applies shall be in integral multiples of $1,000,000 and not less than
$3,000,000; and 

4.2.2. Renewals. 

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

4.3. Interest After Default. 

To the extent permitted by
Law, upon the occurrence of an Event of Default and until such time such Event
of Default shall have been cured or waived at the discretion of the Agent or
upon written demand of the Required Lenders to the Agent: 

27 

4.3.1. Interest Rate. 

the rate of interest for
each Loan otherwise applicable pursuant to Section 4.1 [Interest Rate Options]
shall be increased by 2.0% per annum; and 

4.3.2. Other Obligations. 

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

4.3.3. Acknowledgment. 

The Borrower acknowledges
that the increase in rates referred to in this Section 4.3 [Interest After
Default] reflects, among other things, the fact that such Loans or other amounts
have become a substantially greater risk given their default status and that the
Lenders are entitled to additional compensation for such risk; and all such
interest shall be payable by Borrower upon demand by Agent. 

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

4.4.1. Unascertainable. 

If on any date on which a
LIBOR Rate would otherwise be determined with respect to a portion of the Term
Loan, the Agent shall have determined that: 

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

(ii) a contingency has
occurred which materially and adversely affects the London interbank eurodollar
market relating to the LIBOR Rate, 

then the Agent shall have
the rights specified in Section 4.4.3 [Agent’s and Lenders’ Rights]. 

4.4.2. Illegality; Increased Costs; Deposits Not
Available. 

If at any time any Lender
shall have determined that: 

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

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

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

28 

then the Agent shall have
the rights specified in Section 4.4.3 [Agent’s and Lenders’ Rights]. 

4.4.3. Agent’s and Lenders’ Rights. 

In the case of any event
specified in Section 4.4.1 [Unascertainable] above, the Agent shall promptly so
notify the Lenders and the Borrower thereof, and in the case of an event
specified in Section 4.4.2 [Illegality; Increased Costs; Deposits Not Available]
above, such Lender shall promptly so notify the Agent and endorse a certificate
to such notice as to the specific circumstances of such notice, and the Agent
shall promptly send copies of such notice and certificate to the other Lenders
and the Borrower. Upon such date as shall be specified in such notice (which
shall not be earlier than the date such notice is given), the obligation of (A)
the Lenders, in the case of such notice given by the Agent, or (B) such Lender,
in the case of such notice given by such Lender, to allow the Borrower to
select, convert to or renew a LIBOR Rate Option shall be suspended until the
Agent shall have later notified the Borrower, or such Lender shall have later
notified the Agent, of the Agent’s or such Lender’s, as the case may be,
determination that the circumstances giving rise to such previous determination
no longer exist. If at any time the Agent makes a determination under Section
4.4.1 [Unascertainable] and the Borrower has previously notified the Agent of
its selection of, conversion to or renewal of a LIBOR Rate Option and such
Interest Rate Option has not yet gone into effect, such notification shall be
deemed to provide for the selection of, conversion to or renewal of the Base
Rate Option otherwise available with respect to such applicable portion of the
Term Loan if the Borrower has requested the LIBOR Rate Option. If any Lender
notifies the Agent of a determination under Section 4.4.2 [Illegality; Increased
Costs; Deposits Not Available], the Borrower shall, subject to the Borrower’s
indemnification Obligations under Section 5.6.5 [Indemnity], as to any portion
of the Term Loan of the Lender to which a LIBOR Rate Option applies, on the date
specified in such notice either (i) as applicable, convert such portion of the
Term Loan to the Base Rate Option otherwise available with respect to such
portion of the Term Loan, or (ii) prepay such portion of the Term Loan in
accordance with Section 5.4.1 [Voluntary Prepayments]. Absent due notice from
the Borrower of conversion or prepayment, such portion of the Term Loan shall
automatically be converted to the Base Rate Option otherwise available with
respect to such portion of the Term Loan upon such specified date. 

4.5. Selection of Interest Rate Options. 

If the Borrower fails to
select a new Interest Period to apply to any Borrowing Tranche of any portion of
the Term Loan under the LIBOR Rate Option at the expiration of an existing
Interest Period applicable to such Borrowing Tranche in accordance with the
provisions of Section 4.2 [Interest Periods], the Borrower shall be deemed to
have converted such Borrowing Tranche to the Base Rate Option, commencing upon
the last day of the existing Interest Period. 

5.
PAYMENTS

5.1. Payments. 

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

29 

5.2. Pro Rata Treatment of Lenders; Sharing of
Payments; Agent’s Presumptions.

The borrowing of the Term
Loan shall be allocated to each Lender according to its Ratable Share and each
selection of, conversion to or renewal of any Interest Rate Option applicable to
any portion of the Term Loan and each payment or prepayment by the Borrower with
respect to principal or interest on the Term Loan or other fees or amounts due
from the Borrower hereunder to the Lenders with respect to the Term Loan shall
(except as otherwise may be provided with respect to a Defaulting Lender and as
provided in Section 4.4.3 [Agent’s and Lenders’ Rights] in the case of an event
specified in Section 4.4 [LIBOR Rate Unascertainable; Etc.], Section 5.4.2
[Replacement of a Lender] or Section 5.6 [Additional Compensation in Certain
Circumstances]) be made in proportion to the applicable portion of the Term Loan
outstanding from each Lender.

5.2.1. Sharing of Payments by Lenders. 

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

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

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

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

30 

5.2.2. Presumptions by the Agent. 

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

5.3. Interest Payment Dates. 

Interest on the portion of
the Term Loan to which the Base Rate Option applies shall be due and payable
quarterly in arrears on the first day of each January, April, July and October
after the date hereof and on the Maturity Date or upon acceleration of the
Loans. Interest on the portion of the Term Loan to which the LIBOR Rate Option
applies shall be due and payable on the last day of each Interest Period for
those portions of the Term Loan and, if such Interest Period is longer than
three (3) Months, also on the 90th day of such Interest Period, and
on the Maturity Date or upon acceleration of the Term Loan. Interest payable
under Section 4.3 [Interest After Default] shall be payable on demand.

5.4. Prepayments. 

5.4.1. Voluntary Prepayments. 

The Borrower shall have the
right at its option from time to time to prepay the Term Loan in whole or part
without premium or penalty (except as provided in Section 5.4.2 [Replacement of
a Lender] below or in Section 5.6 [Additional Compensation in Certain
Circumstances]) at any time including, without limitation, on the date specified
in a notice by any Lender pursuant to Section 4.4 [LIBOR Rate Unascertainable,
Etc.] with respect to any portion of the Term Loan to which a LIBOR Rate Option
applies. 

Whenever the Borrower
desires to prepay any part of the Term Loan, it shall provide a prepayment
notice to the Agent by 1:00 p.m., New York time, at least (i) one (1) Business
Day prior to the date of prepayment of such portion of the Term Loan to which
the Base Rate Option applies and (ii) three (3) Business Days prior to the date
of prepayment of such portion of the Term Loan to which the LIBOR Rate Option
applies, in each case setting forth the following information: 

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

(y) the total principal
amount of such prepayment which, with respect to the portion of the Term Loan to
which the Base Rate Option applies, shall not be less than $500,000 unless such
repayment is of the total amount of such portion of the Term Loan outstanding,
and 

31 

(z) the total principal
amount of such prepayment, which, with respect to the portion of the Term Loan
to which the LIBOR Rate Option applies, shall not be less than $1,000,000 unless
such repayment is of the total amount of such portion of the Term Loan
outstanding. 

All prepayment notices
shall be irrevocable. The principal amount of the portion of the Term Loan for
which a prepayment notice is given, together with interest on such principal
amount except with respect to any portion of the Term Loan to which the Base
Rate Option applies, shall be due and payable on the date specified in such
prepayment notice as the date on which the proposed prepayment is to be made.
Except as provided in Section 4.4.3 [Agent’s and Lenders’ Rights], if the
Borrower prepays a portion of the Term Loan but fails to specify the applicable
Borrowing Tranche which the Borrower is prepaying, the prepayment shall be
applied first to the portion of the Term Loan to which the Base Rate Option
applies, and then to the portion of the Term Loan to which the LIBOR Rate Option
applies. Any prepayment hereunder shall be subject to the Borrower’s Obligation
to indemnify the Lenders under Section 5.6.5 [Indemnity]. 

5.4.2. Replacement of a Lender. 

In the event any Lender (a)
gives notice under Section 4.4 [LIBOR Rate Unascertainable, Etc.], (b) requests
compensation under Section 5.6.1 [Increased Costs Generally] or requires the
Borrower to pay or withhold any Indemnified Taxes or additional amount to any
Lender or Official Body for the account of any Lender pursuant to Section 5.8
[Taxes], (c) is a Defaulting Lender or (d) becomes subject to the control of an
Official Body (other than normal and customary supervision), or (e) is a
Non-Consenting Lender referred to in Section 11.1 [Modifications, Amendments or
Waivers], then in any such event the Borrower may, at its sole expense, upon
notice to such Lender and the Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in, and consents required by, Section 11.11 [Successors and Assigns]), all of
its interests, rights (other than existing rights to payments pursuant to
Section 5.6.1 [Increased Costs Generally] or 5.8 [Taxes]) and obligations under
this Agreement and the related Loan Documents to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that: 

(i) the Borrower shall have
paid to the Agent the assignment fee specified in Section 11.11 [Successors and
Assigns]; 

(ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its portion
of the Term Loan, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder and under the other Loan Documents (including any
amounts under Section 5.6.5 [Indemnity]) from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts); 

(iii) in the case of any
such assignment resulting from a claim for compensation under Section 5.6.1
[Increased Costs Generally] or payments required to be made pursuant to Section
5.8 [Taxes], such assignment will result in a reduction in such compensation or
payments thereafter; and 

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

32 

5.4.3. Change of Lending Office. 

Each Lender agrees that
prior to giving notice to any claim for increased costs, indemnification or
other special payments under Section 4.4.2 [Illegality, Etc.], 5.6.1 [Increased
Costs Generally] or Section 5.8 [Taxes] with respect to such Lender, it will
have initiated reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any portion of the Term
Loan affected by such event, provided that such
designation is made on such terms that such Lender and its lending office suffer
no economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of such Section. Nothing
in this Section 5.4.3 shall affect or postpone any of the Obligations of the
Borrower or any other Loan Party or the rights of the Agent or any Lender
provided in this Agreement. 

5.5. [Reserved]. 

5.6. Additional Compensation in Certain
Circumstances. 

5.6.1.
Increased Costs
Generally. 

If any Change in Law
shall: 

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

(ii) subject any Recipient
to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses
(ii) through (iv) of the definition of Excluded Taxes and (C) Connection Income
Taxes) on its loans, loan principal, commitments, or other obligations, or its
deposits, reserves, other liabilities or capital attributable thereto; or

(iii) impose on any Lender
or the London interbank market any other condition, cost or expense (other than
Taxes) affecting this Agreement or portion of the Term Loan made by such Lender;

and the result of any of
the foregoing shall be to increase the cost to such Lender or such other
Recipient of making, converting to, continuing or maintaining any portion of the
Term Loan, or to reduce the amount of any sum received or receivable by such
Lender or other Recipient hereunder (whether of principal, interest or any other
amount) then, upon request of such Lender or other Recipient, the Borrower will
pay to such Lender or other Recipient, as the case may be, such additional
amount or amounts as will compensate such Lender or other Recipient, as the case
may be, for such additional costs incurred or reduction suffered. 

5.6.2. Capital Requirements. 

Without duplication, if any
Change in Law affecting any Lender or any lending office of such Lender or such
Lender’s holding company, if any, regarding capital or liquidity requirements
has the effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the portion of the Term Loan made
by such Lender to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy or liquidity),
then from time to time the Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

33 

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

A certificate of a Lender
setting forth the amount or amounts necessary to compensate such Lender or its
holding company as specified in Section 5.6.1 [Increased Costs Generally] or
5.6.2 [Capital Requirements] and delivered to the Borrower shall be conclusive
absent manifest error. The Borrower shall pay such Lender the amount shown as
due on any such certificate within thirty (30) days after receipt thereof.

5.6.4. Delay in Requests. 

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

5.6.5. Indemnity. 

The Borrower shall
indemnify each Lender against all direct liabilities, losses, costs or expenses
(including any loss or expense incurred in connection with the liquidation or
reemployment of funds obtained by it to maintain such Loan, from fees payable to
terminate the deposits from which such funds were obtained or from the
performance of any foreign exchange contract but excluding Taxes, which are
governed by Section 5.6.1 [Increased Costs Generally] or Section 5.8 [Taxes])
which such Lender actually sustains or incurs as a consequence of any:

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

(b) attempt by the Borrower
to revoke (expressly, by later inconsistent notices or otherwise) in whole or
part any Loan Requests under Section 2.4 [Term Loan Request] or Section 4.2
[Interest Periods] or notice relating to voluntary prepayments under Section
5.4.1 [Voluntary Prepayments], 

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

(d) the assignment of any
portion of the Term Loan to which a LIBOR Rate Option applies, as a result of
the Borrower’s exercise of its rights to replace a Lender under Section 5.4.2
[Replacement of a Lender]. 

34 

If any Lender sustains or
incurs any such loss or expense, it shall from time to time notify the Borrower
of the amount determined in good faith by such Lender (which determination may
include such assumptions, allocations of costs and expenses and averaging or
attribution methods as such Lender shall deem reasonable) to be necessary to
indemnify such Lender for such loss or expense. Such notice shall set forth in
reasonable detail the basis for such determination. Such amount shall be due and
payable by the Borrower to such Lender thirty (30) days after such notice is
given. 

5.7. Interbank Market Presumption. 

Except as otherwise
expressly provided herein, for all purposes of this Agreement and each Note with
respect to any aspects of the LIBOR Rate or any portion of the Term Loan under
the LIBOR Rate Option, each Lender and Agent shall be presumed to have obtained
rates, funding, currencies, deposits, and the like in the London interbank
market regardless whether it did so or not; and, each Lender’s and the Agent’s
determination of amounts payable under, and actions required or authorized by,
Sections 4.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available] and 5.6 [Additional Compensation in Certain Circumstances] shall
be calculated, at each Lender’s and Agent’s option, as though each Lender and
Agent funded its pro rata share of each Borrowing Tranche of a portion of the
Term Loan under the LIBOR Rate Option through the purchase of deposits of the
types and maturities corresponding to the deposits used as a reference in
accordance with the terms hereof in determining the LIBOR Rate applicable to
such portion of the Term Loan, whether in fact that is the case. 

5.8. Taxes. 

For purposes of this
Section 5.8, “applicable Law” includes FACTA. Each reference to an IRS form in
this Section 5.8 shall include any successors and amendments thereto.

5.8.1. Payments Free of Taxes. 

Any and all payments by or
on account of any obligation of any Loan Party under any Loan Document shall be
without deduction or withholding for any Taxes, except as required by applicable
Law. If any applicable Law (as determined in the good faith discretion of an
applicable Withholding Agent) requires the deduction or withholding of any Tax
from any such payment by a Withholding Agent, then the applicable Withholding
Agent shall be entitled to make such deduction or withholding and shall timely
pay the full amount deducted or withheld to the relevant Official Body in
accordance with applicable Law and, if such Tax is an Indemnified Tax, then the
sum payable by the applicable Loan Party shall be increased as necessary so that
after such deduction or withholding has been made (including such deductions and
withholdings applicable to additional sums payable under this Section 5.8
[Taxes]) the applicable Recipient receives an amount equal to the sum it would
have received had no such deduction or withholding been made. 

5.8.2. Payment of Other Taxes by the Loan
Parties. 

Without limiting the
provisions of Section 5.8.1 [Payments Free of Taxes] above, the Loan Parties
shall timely pay to the relevant Official Body in accordance with applicable
Law, or at the option of the Agent timely reimburse it for the payment of, any
Other Taxes. 

5.8.3. Indemnification by the Loan
Parties. 

The Loan Parties shall
jointly and severally indemnify each Recipient, within ten (10) days after
written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed
or asserted on or attributable to amounts payable under this Section 5.8
[Taxes]) payable or paid by such Recipient or required to be withheld or
deducted from a payment to such Recipient and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes were
correctly or legally imposed or asserted by the relevant Official Body. A
certificate as to the amount of such payment or liability delivered to the
Borrower by a Lender (with a copy to the Agent), or by the Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

35 

5.8.4. Indemnification by the Lenders. 

Each Lender shall severally
indemnify the Agent, within ten (10) days after demand therefor, for (i) any
Indemnified Taxes attributable to such Lender (but only to the extent that any
Loan Party has not already indemnified the Agent for such Indemnified Taxes and
without limiting the obligation of any of the Loan Parties to do so), (ii) any
Taxes attributable to such Lender’s failure to comply with the provisions of
Section 11.11.4 [Participations] relating to the maintenance of a Participant
Register, and (iii) any Excluded Taxes attributable to such Lender, in each
case, that are payable or paid by the Agent in connection with any Loan
Document, and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Taxes were correctly or legally imposed or asserted by the
relevant Official Body. A certificate as to the amount of such payment or
liability delivered to any Lender by the Agent shall be conclusive absent
manifest error. Each Lender hereby authorizes the Agent to set off and apply any
and all amounts at any time owing to such Lender under any Loan Document or
otherwise payable by the Agent to the Lender from any other source against any
amount due to the Agent under this Section 5.8.4 [Indemnification by the
Lenders]. 

5.8.5. Evidence of Payments. 

Within thirty (30) days
after the date of any such payment, by any Loan Party to an Official Body
pursuant to this Section 5.8 [Taxes], such Loan Party shall deliver to the Agent
the original or a certified copy of a receipt issued by such Official Body
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Agent. 

5.8.6. Status of Lenders. 

(i) Any Lender that is
entitled to an exemption from or reduction of withholding Tax with respect to
payments made under any Loan Document shall deliver to the Borrower and the
Agent, at the time or times reasonably requested by the Borrower or the Agent,
such properly completed and executed documentation reasonably requested by the
Borrower or the Agent as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if
reasonably requested by the Borrower or the Agent, shall deliver such other
documentation prescribed by applicable Law or reasonably requested by the
Borrower or the Agent as will enable the Borrower or the Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements. Notwithstanding anything to the contrary in the
preceding two sentences, the completion, execution and submission of such
documentation (other than such documentation set forth in Section 5.8.6(ii)(1),
(ii)(2) and (ii)(4) below) shall not be required if in the Lender’s reasonable
judgment such completion, execution or submission would subject such Lender to
any material unreimbursed cost or expense or would materially prejudice the
legal or commercial position of such Lender. 

(ii) Without limiting the
generality of the foregoing, in the event that the Borrower is a U.S. Borrower,

36 

(1) any Lender that is a
U.S. Person shall deliver to the Borrower and the Agent on or prior to the date
on which such Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the reasonable request of the Borrower or the Agent),
executed originals of IRS Form W-9 certifying that such Lender is exempt from
U.S. federal backup withholding tax; 

(2) any Foreign Lender
shall, to the extent it is legally entitled to do so, deliver to the Borrower
and the Agent (in such number of copies as shall be requested by the recipient)
on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the
Borrower or the Agent), whichever of the following is applicable: 

a. in the case of a Foreign
Lender claiming the benefits of an income tax treaty to which the United States
is a party (x) with respect to payments of interest under any Loan Document,
executed originals of IRS Form W-8BEN establishing an exemption from, or
reduction of, U.S. federal withholding Tax pursuant to the “interest” article of
such tax treaty and (y) with respect to any other applicable payments under any
Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of,
U.S. federal withholding Tax pursuant to the “business profits” or “other
income” article of such tax treaty; 

b. executed originals of
IRS Form W-8ECI; 

c. in the case of a Foreign
Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Internal Revenue Code, (x) a certificate substantially in
the form of Exhibit
5.8.6(A) to the effect that such
Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of
the Internal Revenue Code, (B) a “10 percent shareholder” of the Borrower within
the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or (C) a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the
Internal Revenue Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN;
or 

d. to the extent a Foreign
Lender is not the beneficial owner, executed originals of IRS Form W-8IMY,
accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance
Certificate substantially in the form of Exhibit 5.8.6(B) or
Exhibit 5.8.6(C), IRS Form W-9, and/or other certification
documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or
indirect partners of such Foreign Lender are claiming the portfolio interest
exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate
substantially in the form of Exhibit 5.8.6(D) on behalf
of each such direct and indirect partner; 

(3) any Foreign Lender
shall, to the extent it is legally entitled to do so, deliver to the Borrower
and the Agent (in such number of copies as shall be requested by the recipient)
on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the
Borrower or the Agent), executed originals of any other form prescribed by
applicable Law as a basis for claiming exemption from or a reduction in U.S.
federal withholding Tax, duly completed, together with such supplementary
documentation as may be prescribed by applicable Law to permit the Borrower or
the Agent to determine the withholding or deduction required to be made; and

(4) if a payment made to a
Lender under any Loan Document would be subject to U.S. federal withholding Tax
imposed by FATCA if such Lender were to fail to comply with the applicable
reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Internal Revenue Code, as applicable), such Lender shall deliver to the
Borrower and the Agent at the time or times prescribed by Law and at such time
or times reasonably requested by the Borrower or the Agent such documentation
prescribed by applicable Law (including as prescribed by Section
1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation
reasonably requested by the Borrower or the Agent as may be necessary for the
Borrower and the Agent to comply with their obligations under FATCA and to
determine that such Lender has complied with such Lender’s obligations under
FATCA or to determine the amount to deduct and withhold from such payment.
Solely for purposes of this clause (4), “FATCA” shall include any amendments
made to FATCA after the date of this Agreement. 

37 

Each Lender agrees that if
any form or certification it previously delivered expires or becomes obsolete or
inaccurate in any respect, it shall update such form or certification or
promptly notify the Borrower and the Agent in writing of its legal inability to
do so. 

5.8.7. Treatment of Certain Refunds. 

If any party determines, in
its sole discretion exercised in good faith, that it has received a refund of
any Taxes as to which it has been indemnified pursuant to this Section 5.8
[Taxes] (including by the payment of additional amounts pursuant to this Section
5.8 [Taxes]), it shall pay to the indemnifying party an amount equal to such
refund (but only to the extent of indemnity payments made under this Section 5.8
[Taxes] with respect to the Taxes giving rise to such refund), net of all
out-of-pocket expenses (including Taxes) of such indemnified party incurred in
connection with obtaining such refund and without interest (other than any
interest paid by the relevant Official Body with respect to such refund). Such
indemnifying party, upon the request of such indemnified party, shall repay to
such indemnified party the amount paid over pursuant to this Section 5.8.7 (plus
any penalties, interest or other charges imposed by the relevant Official Body)
in the event that such indemnified party is required to repay such refund to
such Official Body. Notwithstanding anything to the contrary in this Section
5.8.7), in no event will the indemnified party be required to pay any amount to
an indemnifying party pursuant to this Section 5.8.7 the payment of which would
place the indemnified party in a less favorable net after-Tax position than the
indemnified party would have been in if the indemnification payments or
additional amounts giving rise to such refund had never been paid. This
paragraph shall not be construed to require any indemnified party to make
available its Tax returns (or any other information relating to its Taxes that
it deems confidential) to the indemnifying party or any other Person.

5.8.8. Survival. 

Each party’s obligations
under this Section 5.8 [Taxes] shall survive the resignation of the Agent or any
assignment of rights by, or the replacement of, a Lender, the termination of the
Commitments and the repayment, satisfaction or discharge of all Obligations.

5.9. Notes. 

Upon the request of any
Lender, the portion of the Term Loan made by such Lender may be evidenced by a
Note in the form of Exhibit
1.1(R). 

6.
REPRESENTATIONS AND
WARRANTIES 

6.1. Representations and Warranties. 

38 

The Loan Parties, jointly
and severally, represent and warrant to the Agent and each of the Lenders as
follows: 

6.1.1. Organization and Qualification. 

Each Loan Party and each
Subsidiary that is not an Inactive Subsidiary of each Loan Party is a
corporation, partnership or limited liability company duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization. Each Loan Party and each Subsidiary that is not an Inactive
Subsidiary of each Loan Party has the lawful power to own or lease its
properties and to engage in the business it presently conducts or proposes to
conduct. Each Loan Party and each Subsidiary that is not an Inactive Subsidiary
of each Loan Party is duly licensed or qualified and in good standing in each
jurisdiction where the failure to be so licensed or qualified could reasonably
be expected to result in a Material Adverse Change. 

6.1.2. Subsidiaries. 

Schedule
6.1.2 states as of the date
hereof the name of each of the Borrower’s Subsidiaries, its jurisdiction of
incorporation or formation and also indicates if such Subsidiary is an Inactive
Subsidiary. An “Inactive
Subsidiary” is a Subsidiary that
(i) does not conduct any business or have operations, (ii) does not have total
assets with a net book value, as of any date of determination, in excess of
$100,000, and (iii) has no liabilities, contingent or otherwise, except
Indebtedness permitted by Section 8.2.1 [Indebtedness]. The Borrower and each
Subsidiary of the Borrower has good and marketable title to all of the Equity
Interests of its Subsidiaries it purports to own, free and clear in each case of
any Lien other than Permitted Liens.

6.1.3. Power and Authority. 

Each Loan Party has full
power to enter into, execute, deliver and carry out this Agreement and the other
Loan Documents to which it is a party, to incur the Indebtedness contemplated by
the Loan Documents and to perform its Obligations under the Loan Documents to
which it is a party, and all such actions have been duly authorized by all
necessary proceedings on its part. 

6.1.4. Validity and Binding Effect. 

This Agreement has been
duly and validly executed and delivered by each Loan Party, and each other Loan
Document which any Loan Party is required to execute and deliver on or after the
date hereof will have been duly executed and delivered by such Loan Party on the
required date of delivery of such Loan Document. This Agreement and each other
Loan Document constitutes, or will constitute, legal, valid and binding
obligations of each Loan Party which is or will be a party thereto on and after
its date of delivery thereof, enforceable against such Loan Party in accordance
with its terms, except to the extent that enforceability of any of such Loan
Document may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforceability of creditors’ rights generally
or limiting the right of specific performance. 

6.1.5. No Conflict. 

Neither the execution and
delivery of this Agreement or the other Loan Documents by any Loan Party nor the
consummation of the transactions herein or therein contemplated or compliance
with the terms and provisions hereof or thereof by any of them will conflict
with, constitute a default under or result in any breach of (i) the terms and
conditions of the certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, limited liability
company agreement or other organizational documents of any Loan Party or (ii)
any Law or any material agreement or instrument or order, writ, judgment,
injunction or decree to which any Loan Party or any of its Subsidiaries is a
party or by which it or any of its Subsidiaries is bound or to which it is
subject, or result in the creation or
enforcement of any Lien, charge or encumbrance whatsoever upon any property (now
or hereafter acquired) of any Loan Party or any of its Subsidiaries (other than
Liens granted under the Loan Documents).

39 

6.1.6. Litigation. 

Except as set forth in the
SEC Filings, there are no actions, suits, proceedings or investigations (other
than Environmental Complaints which are specifically addressed in Section 6.1.21
[Environmental Matters]) pending or, to the knowledge of any Loan Party,
threatened against such Loan Party or any Subsidiary of such Loan Party at law
or equity before any Governmental Body which individually or in the aggregate
could reasonably be expected to result in a Material Adverse Change. None of the
Loan Parties or any Subsidiaries of any Loan Party is in violation of any order,
writ, injunction or any decree of any Governmental Body which could reasonably
be expected to result in any Material Adverse Change. 

6.1.7. Title to Properties. 

Each Loan Party and each
Subsidiary of each Loan Party has good and marketable title to or valid
leasehold interest in all properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and
records, free and clear of all Liens (other than Environmental Complaints which
are specifically addressed in Section 6.1.21 [Environmental Matters]) except
Permitted Liens, and subject to the terms and conditions of the applicable
leases, except where the failure to hold such properties, assets and other
rights subject to such terms and conditions could reasonably be expected to
result in a Material Adverse Change. All leases of property are in full force
and effect without the necessity for any consent which has not previously been
obtained upon consummation of the transactions contemplated hereby to the extent
that the failure of such leases to be in full force or effect or have obtained
any such consent could reasonably be expected to result in a Material Adverse
Change. 

6.1.8. Historical Statements; No Material Adverse
Change. 

6.1.8.1. Historical Statements. 

(a) The Borrower has delivered to the Agent copies of
its audited consolidated year-end financial statements for and as of the end of
the fiscal year ended September 30, 2016 (the “Audited Financial Statements”) and its unaudited management-prepared
consolidated financial statements for the fiscal quarters ended December 31,
2016, March 31, 2017 and June 30, 2017 (the “Quarterly Financial Statements” and, together with the Audited Financial
Statements, the “Historical
Statements”).

(b) The Audited Financial Statements (i) were prepared
in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; (ii) fairly present the
consolidated financial condition of the Borrower and its Subsidiaries as of the
date thereof and their consolidated results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period
covered thereby; and (iii) show all material indebtedness and other material
liabilities, direct or contingent, of the Borrower and its Subsidiaries as of
the date thereof, including liabilities for taxes, material commitments and
Indebtedness, required to be reflected on the Audited Financial Statements under
GAAP. 

(c) The Quarterly Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein,
and (ii) fairly present the consolidated financial condition of the Borrower and
its Subsidiaries as of the date thereof and their consolidated results of
operations for the period covered thereby, in each case, subject to the absence
of footnotes and to normal year-end audit adjustments.

40 

 

6.1.8.2. No Material Adverse Change. 

Since September 30, 2016,
no Material Adverse Change has occurred.

6.1.9. Use of Proceeds; Margin Stock. 

6.1.9.1. General. 

The Loan Parties intend to
use the proceeds of the Term Loan in accordance with Sections 2.8 [Use of
Proceeds] and 8.1.10 [Use of Proceeds]. 

6.1.9.2. Margin Stock. 

None of the Loan Parties or
any Subsidiaries of any Loan Party engages or intends to engage principally, or
as one of its important activities, in the business of extending credit for the
purpose, immediately, incidentally or ultimately, of purchasing or carrying
margin stock (within the meaning of Regulation U). No part of the proceeds of
the Term Loan has been or will be used, immediately, incidentally or ultimately,
to purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying any margin stock or to refund Indebtedness
originally incurred for such purpose, or for any other purpose, in each case
which entails a violation of the provisions of the regulations of the Board of
Governors of the Federal Reserve System. Margin stock does not, and will not,
constitute, more than 25% of the value of the consolidated assets of the
Borrower and its Subsidiaries. 

6.1.10. Full Disclosure. 

Neither this Agreement nor
any other Loan Document, nor any certificate, statement, agreement or other
documents furnished to the Agent or any Lender in connection herewith or
therewith, when taken together with the information contained in the SEC
Filings, contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein and
therein, in light of the circumstances under which they were made, not
materially misleading.

6.1.11. Taxes. 

All federal, state, local
and other Tax returns required to have been filed with respect to each Loan
Party and each Subsidiary of each Loan Party have been filed, and payment or
adequate provision has been made for the payment of all Taxes which have or may
become due pursuant to said returns or to assessments received, except to the
extent that (i) such Taxes are being contested in good faith by appropriate
proceedings diligently conducted and for which such reserves or other
appropriate provisions if any, as shall be required by GAAP, shall have been
made, or (ii) the failure to so pay or so contest such Taxes could not
reasonably be expected to result in a Material Adverse Change. 

41 

6.1.12. Consents and Approvals. 

No consent, approval,
exemption, order or authorization of, or a registration or filing with, any
Official Body or any other Person is required by any Law or any agreement in
connection with the execution, delivery and carrying out of this Agreement and
the other Loan Documents by any Loan Party, except as listed on Schedule 6.1.12, all of which shall have been obtained or made on
or prior to the Closing Date except as otherwise indicated on Schedule 6.1.12. 

6.1.13. No Event of Default; Compliance With
Instruments. 

No event has occurred and
is continuing and no condition exists or will exist after giving effect to the
borrowings or other extensions of credit to be made on the Closing Date under or
pursuant to the Loan Documents which constitutes an Event of Default or
Potential Default. None of the Loan Parties or any Subsidiaries of any Loan
Party is in violation of (i) any term of its certificate of incorporation,
bylaws, certificate of limited partnership, partnership agreement, certificate
of formation, limited liability company agreement or other organizational
documents or (ii) any material agreement or instrument to which it is a party or
by which it or any of its properties may be subject or bound where such
violation could reasonably be expected to result in a Material Adverse Change.

6.1.14. Patents, Trademarks, Copyrights, Licenses,
Etc. 

Each Loan Party and each
Subsidiary of each Loan Party owns or has the contractual right to use all the
patents, trademarks, service marks, trade names, copyrights, licenses,
registrations, franchises, permits and rights reasonably necessary to own and
operate its properties and to carry on its business as presently conducted and
planned to be conducted by such Loan Party or Subsidiary, without known
possible, alleged or actual conflict with the rights of others, except where the
failure to do so could not reasonably be expected to have a Material Adverse
Change. 

6.1.15. Insurance. 

The Borrower is in
compliance with the requirements of Section 8.1.3 [Maintenance of Insurance] in
all material respects. 

6.1.16. Compliance With Laws. 

The Loan Parties and their
Subsidiaries are in compliance in all material respects with all applicable Laws
(other than Environmental Laws which are specifically addressed in Section
6.1.21 [Environmental Matters]) in all jurisdictions in which any Loan Party or
Subsidiary of any Loan Party is presently or will be doing business except where
the failure to do so could not reasonably be expected to result in a Material
Adverse Change. 

6.1.17. Material Contracts; Burdensome
Restrictions. 

All material contracts
relating to the business operations of each Loan Party and each Subsidiary of
any Loan Party, including all employee benefit plans and material Labor
Contracts, are valid, binding and enforceable upon such Loan Party or Subsidiary
and, to the best of such Loan Parties’ knowledge, each of the other parties
thereto in accordance with their respective terms, except to the extent that the
failure to be valid, binding and enforceable could reasonably be expected to
result in a Material Adverse Change; and there is no material default
thereunder, to the Loan Parties’ knowledge, with respect to parties other than
such Loan Party or Subsidiary which could reasonably be expected to result in a
Material Adverse Change. None of the Loan Parties or their Subsidiaries is bound
by any contractual obligation, or subject to
any restriction in any organization document, or any requirement of Law which
could reasonably be expected to result in a Material Adverse Change. 

42 

6.1.18. Investment Companies; Regulated
Entities. 

None of the Loan Parties or
any Subsidiaries of any Loan Party is an “investment company” registered or
required to be registered under the Investment Company Act of 1940 or under the
“control” of an “investment company” as such terms are defined in the Investment
Company Act of 1940 and shall not become such an “investment company” or under
such “control”. None of the Loan Parties is subject to any other federal or
state statute or regulation limiting its ability to incur Indebtedness for
borrowed money. 

6.1.19. Plans and Benefit Arrangements. 

(i) The Borrower and each
other member of the ERISA Group are in compliance with any applicable provisions
of ERISA with respect to all Benefit Arrangements, Plans, Multiple Employer
Plans and Multiemployer Plans except where any instance of noncompliance could
not reasonably be expected to result in a Material Adverse Change. There has
been no Prohibited Transaction with respect to any Benefit Arrangement or any
Plan or, to the best knowledge of the Borrower, with respect to any
Multiemployer Plan or Multiple Employer Plan, in either case which could
reasonably be expected to result in a Material Adverse Change. The Borrower and
all other members of the ERISA Group have made when due any and all material
payments required to be made under any agreement relating to a Multiemployer
Plan or a Multiple Employer Plan or any Law pertaining thereto except for any
failure that could not reasonably be expected to result in a Material Adverse
Change. With respect to each Plan and Multiple Employer Plan, the Borrower and
each other member of the ERISA Group (a) have fulfilled in all material respects
their obligations under the minimum funding standards of ERISA, (b) have not
incurred any material liability to the PBGC which has not been paid in the
ordinary course, and (c) have not had asserted against them any penalty for
failure to fulfill the minimum funding requirements of ERISA, except for any
failure under (a), (b) or (c) that could not reasonably be expected to result in
a Material Adverse Change. All Plans, Benefit Arrangements and, to the best
knowledge of Borrower, Multiple Employer Plans and Multiemployer Plans have been
administered in all material respects in accordance with their terms and
applicable Law except for any failure that could not reasonably be expected to
result in a Material Adverse Change. 

(ii) No event requiring
notice to the PBGC under Section 303(k)(4)(A) of ERISA has occurred or is
reasonably expected to occur with respect to any Plan except for any failure
that could not reasonably be expected to result in a Material Adverse Change.

(iii) Neither the Borrower
nor any other member of the ERISA Group has incurred or reasonably expects to
incur any withdrawal liability under ERISA to any Multiemployer Plan or Multiple
Employer Plan which could reasonably be expected to result in a Material Adverse
Change. Neither the Borrower nor any other member of the ERISA Group has been
notified by any Multiemployer Plan or Multiple Employer Plan that such
Multiemployer Plan or Multiple Employer Plan has been terminated within the
meaning of Title IV of ERISA and, to the best knowledge of the Borrower, no
Multiemployer Plan or Multiple Employer Plan is reasonably expected to be
reorganized or terminated, within the meaning of Title IV of ERISA which, in
either case, could reasonably be expected to result in a Material Adverse
Change. 

43 

6.1.20. Employment Matters. 

Each of the Loan Parties
and each of their Subsidiaries is in compliance with the Labor Contracts and all
applicable federal, state and local labor and employment Laws including those
related to equal employment opportunity and affirmative action, labor relations,
minimum wage, overtime, child labor, medical insurance continuation, worker
adjustment and relocation notices, immigration controls and worker and
unemployment compensation, where the failure to comply could reasonably be
expected to result in a Material Adverse Change. There are no outstanding
grievances, arbitration awards or appeals therefrom arising out of the Labor
Contracts or current or threatened strikes, picketing, handbilling or other work
stoppages or slowdowns at facilities of any of the Loan Parties or any of their
Subsidiaries which in any case could reasonably be expected to result in a
Material Adverse Change. 

6.1.21. Environmental Matters. 

Except as set forth in the
SEC Filings, none of the Loan Parties or any Subsidiaries of any Loan Party has
received any Environmental Complaint which could reasonably be expected to
result in a Material Adverse Change. There are no pending or, to any Loan
Party’s knowledge, threatened Environmental Complaints relating to any Loan
Party or Subsidiary of any Loan Party or any of the Properties or, to any Loan
Party’s knowledge, any prior owner, operator or occupant of any of the
Properties pertaining to, or arising out of, any Contamination or violations of
Environmental Laws or Environmental Permits which could reasonably be expected
to result in a Material Adverse Change. The Loan Parties and their Subsidiaries
are in compliance with all applicable Environmental Laws in all jurisdictions in
which any Loan Party or Subsidiary of any Loan Party is doing business except
where the failure to do so could not reasonably be expected to result in a
Material Adverse Change. The Loan Parties and their Subsidiaries hold and are
operating in compliance with Environmental Permits, except where the failure to
do so could not reasonably be expected to result in a Material Adverse Change.

6.1.22. Senior Debt Status. 

The Obligations of each
Loan Party under this Agreement, the Guaranty Agreement and each of the other
Loan Documents to which it is a party do rank and will rank at least
pari passu in priority of payment with all other
Indebtedness of such Loan Party except Indebtedness of such Loan Party to the
extent secured by Permitted Liens. There is no Lien upon or with respect to any
of the properties or income of any Loan Party or Unregulated Subsidiary of any
Loan Party which secures indebtedness or other obligations of any Person except
for Permitted Liens. 

6.1.23. Reserved. 

6.1.24. [Reserved] 

6.1.25. Anti-Terrorism Laws.

(i) No Covered Entity is a
Sanctioned Person, and (ii) no Covered Entity, either in its own right or
through any third party, (a) has any of its assets in a Sanctioned Country or in
the possession, custody or control of a Sanctioned Person in violation of any
Anti-Terrorism Law, (b) does business in or with, or derives any of its income
from investments in or transactions with, any Sanctioned Country or Sanctioned
Person in violation of any Anti-Terrorism Law; or (c) engages in any dealings or
transactions prohibited by any Anti-Terrorism Law. 

44 

7.
CONDITIONS OF
LENDING 

The obligation of each
Lender to make the Term Loan hereunder is subject to the performance by each of
the Loan Parties of its Obligations to be performed hereunder at or prior to the
making of the Term Loan to the satisfaction of the following further conditions:

7.1. Conditions to the Term Loan. 

On the Closing Date:

7.1.1. Officer’s Certificate. 

The representations and
warranties of each of the Loan Parties contained in Section 6 [Representations
and Warranties] and in each of the other Loan Documents shall be true and
accurate on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of such date (except
representations and warranties which relate solely to an earlier date or time,
which representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein), and each of the Loan Parties shall
have performed and complied with all covenants and conditions hereof and thereof
required to have been performed and complied with on or prior to the Closing
Date, no Event of Default or Potential Default shall have occurred and be
continuing or shall exist; and there shall be delivered to the Agent for the
benefit of each Lender a certificate of the Borrower, dated the Closing Date and
signed by the Chief Executive Officer, President, Chief Financial Officer or
other Authorized Officer of the Borrower, to each such effect. 

7.1.2. Secretary’s Certificate. 

There shall be delivered to
the Agent for the benefit of each Lender a certificate dated the Closing Date
and signed by the Secretary or an Assistant Secretary of each of the Loan
Parties, certifying as appropriate as to: 

(i) all action taken by
each Loan Party in connection with this Agreement and the other Loan Documents;

(ii) the names of the
officer or officers authorized to sign this Agreement and the other Loan
Documents and the true signatures of such officer or officers and specifying the
Authorized Officers permitted to act on behalf of each Loan Party for purposes
of this Agreement and the true signatures of such officers, on which the Agent
and each Lender may conclusively rely; and 

(iii) copies of its
organizational documents, including its certificate of incorporation, bylaws,
certificate of limited partnership, partnership agreement, certificate of
formation, and limited liability company agreement as in effect on the Closing
Date certified by the appropriate state official where such documents are filed
in a state office together with certificates from the appropriate state
officials as to the continued existence and good standing of each Loan Party in
each state where organized or qualified to do business. 

7.1.3. Opinion of Counsel. 

There shall be delivered to
the Agent for the benefit of each Lender a written opinion of (a) Troutman
Sanders LLP, counsel for the Loan Parties (who may rely on the opinions of such
other counsel and Certificates of the Borrower’s in-house counsel as may be
reasonably acceptable to the Agent), dated the Closing
Date and in substantially the form attached hereto as Exhibit 7.1.3(A), and (b) Alexander Gonzalez, in-house counsel for
the Loan Parties in his capacity as Assistant General Counsel of NJR Service
Corporation, dated the Closing Date and in substantially the form attached
hereto as Exhibit
7.1.3(B). 

45 

7.1.4. Legal Details. 

All legal details and
proceedings in connection with the transactions contemplated by this Agreement
and the other Loan Documents shall be in form and substance satisfactory to the
Agent and counsel for the Agent, and the Agent shall have received all such
other counterpart originals or certified, electronic or other copies of such
documents and proceedings in connection with such transactions, in form and
substance satisfactory to the Agent and said counsel, as the Agent or said
counsel may reasonably request. The Agent shall have received this Agreement
executed by the Borrower and each Lender and the Notes executed by the Borrower,
to the extent requested by any Lender. 

7.1.5. Loan Request. 

The Agent shall have
received a Loan Request duly executed by the Borrower. 

7.1.6. Consents. 

The material consents, if
any, required to effectuate the transactions contemplated hereby as set forth on
Schedule 6.1.12 shall have been obtained. 

7.1.7. Officer’s Certificate Regarding
MACs. 

Since September 30, 2016,
no Material Adverse Change shall have occurred; since that date through and
including the Closing Date, there shall have been no material change in the
management of any Loan Party or Subsidiary of any Loan Party; and there shall
have been delivered to the Agent for the benefit of each Lender a certificate
dated the Closing Date and signed by the Chief Executive Officer, President,
Chief Financial Officer or other Authorized Officer of each Loan Party to each
such effect. 

7.1.8. No Violation of Laws. 

The making of the Term Loan
shall not contravene any Law applicable to any Loan Party or any of the Lenders.

7.1.9. No Actions or Proceedings. 

No action, proceeding,
investigation, regulation or legislation shall have been instituted, threatened
or proposed before any court, governmental agency or legislative body to enjoin,
restrain or prohibit, or to obtain damages in respect of, this Agreement, the
other Loan Documents or the consummation of the transactions contemplated hereby
or thereby or which, in the Agent’s sole discretion, would make it inadvisable
to consummate the transactions contemplated by this Agreement or any of the
other Loan Documents. 

46 

7.1.10. Delivery of Guaranty Agreement. 

The Guaranty Agreement
shall have been duly executed and delivered to the Agent for the benefit of the
Lenders. 

7.1.11. [Reserved]. 

7.1.12. Fees and Expenses. 

The Borrower shall have
paid all fees and reasonable expenses of the Agent and the Lenders required to
be paid on or prior to the Closing Date which have been invoiced to Borrower at
least one (1) Business Days prior to the Closing Date (including reasonable fees
and expenses of counsel to the Agent) in connection with this Agreement and the
other Loan Documents, it being understood and agreed that any additional
reasonable fees and disbursements of Agent’s counsel shall be billed
post-closing and shall be paid promptly upon receipt of an invoice therefor.

8.
COVENANTS

8.1. Affirmative Covenants. 

The Loan Parties, jointly
and severally, covenant and agree that until payment in full of the Term Loan
and interest thereon, satisfaction of all of the Loan Parties’ other Obligations
under the Loan Documents and termination of the Commitments, the Loan Parties
shall comply at all times with the following affirmative covenants: 

8.1.1. Preservation of Existence, Etc. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, (a) maintain its legal existence as a
corporation, partnership or limited liability company and (b) its license or
qualification and good standing in each jurisdiction in which its ownership or
lease of property or the nature of its business makes such license or
qualification necessary, except (i) where the lack of legal existence of any
Subsidiary or the failure to be so licensed or qualified could not reasonably be
expected to have a Material Adverse Change, or (ii) as otherwise expressly
permitted in Section 8.2.5 [Liquidations, Mergers, Etc.]. 

8.1.2. Payment of Liabilities, Including Taxes,
Etc. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, duly pay and discharge all liabilities
to which it is subject or which are asserted against it, promptly as and when
the same shall become due and payable, including all Taxes upon it or any of its
properties, assets, income or profits, prior to the date on which penalties
attach thereto, except to the extent that such liabilities or Taxes are being
contested in good faith and by appropriate and lawful proceedings diligently
conducted and for which such reserve or other appropriate provisions, if any, as
shall be required by GAAP shall have been made, but only to the extent that
failure to discharge any such liabilities would not result in any additional
liability which could reasonably be expected to result in a Material Adverse
Change. 

8.1.3. Maintenance of Insurance. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, insure its properties and assets
against loss or damage by fire and such other insurable hazards as such assets
are commonly insured (including fire, extended coverage, property damage,
workers’ compensation, public liability and business
interruption insurance) and against other risks (including errors and omissions)
in such amounts as similar properties and assets are insured by prudent
companies in similar circumstances carrying on similar businesses, and with
reputable and financially sound insurers, including self-insurance to the extent
customary. 

47

8.1.4. Maintenance of Properties and
Leases. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, maintain in good repair, working order
and condition (ordinary wear and tear excepted) in accordance with the general
practice of other businesses of similar character and size, all of those
properties useful or necessary to its business, and from time to time, such Loan
Party will make or cause to be made all appropriate repairs, renewals or
replacements thereof. 

8.1.5. Maintenance of Patents, Trademarks,
Etc. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, maintain in full force and effect all
patents, trademarks, service marks, trade names, copyrights, licenses,
franchises, permits and other authorizations necessary for the ownership and
operation of its properties and business if the failure so to maintain the same
could constitute a Material Adverse Change. 

8.1.6. Visitation Rights. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, permit any of the officers or
authorized employees or representatives of the Agent or any of the Lenders to
visit and inspect any of its properties and to examine and make excerpts from
its books and records and discuss its business affairs, finances and accounts
with its officers, all in such detail and at such times and as often as any of
the Lenders may reasonably request, provided that each Lender
shall provide the Borrower and the Agent with reasonable notice prior to any
visit or inspection, and, except after the occurrence and during the
continuation of an Event of Default, any such visit or inspection shall occur
during regular business hours and without material disruption to the business of
the Borrower and its Subsidiaries. In the event any Lender desires to conduct an
audit of any Loan Party, such Lender shall make a reasonable effort to conduct
such audit contemporaneously with any audit to be performed by the Agent, and
except after the occurrence and during the continuation of an Event of Default,
any such audit (whether by the Agent or any Lender) shall be at the sole cost
and expense of the Agent or such Lender, as the case may be. 

8.1.7. Keeping of Records and Books of
Account. 

The Borrower shall, and
shall cause each Subsidiary of the Borrower to, maintain and keep proper books
of record and account which enable the Borrower and its Subsidiaries to issue
financial statements in accordance with GAAP and as otherwise required by
applicable Laws of any Official Body having jurisdiction over the Borrower or
any Subsidiary of the Borrower, and in which full, true and correct entries
shall be made in all material respects of all its dealings and business and
financial affairs. 

8.1.8. Plans and Benefit Arrangements. 

The Borrower shall, and
shall cause each of its Subsidiaries and each other member of the ERISA Group
to, comply with ERISA, the Internal Revenue Code and other applicable Laws
applicable to Plans and Benefit Arrangements except where such failure, alone or
in conjunction with any other failure, would not reasonably be expected to
result in a Material Adverse Change. Without limiting the generality of the
foregoing, the Borrower shall cause all of its Plans and all Plans maintained by any of its Subsidiaries
and any member of the ERISA Group to be funded in accordance with the minimum
funding requirements of ERISA and shall make, and cause each member of the ERISA
Group to make, in a timely manner, all contributions due to Plans, Benefit
Arrangements and Multiemployer Plans, except where any such failure, alone or in
conjunction with any other failure, could not reasonably be expected to result
in a Material Adverse Change.

48 

 

8.1.9. Compliance With Laws. 

Each Loan Party shall, and
shall cause each of its Subsidiaries to, comply with all applicable Laws,
including all Environmental Laws, in all material respects, provided that it shall not be deemed to be a violation of this Section 8.1.9 if
any failure to comply with any Law would not result in fines, penalties, costs
associated with the performance of any Remedial Actions, other similar
liabilities or injunctive relief which in the aggregate could not reasonably be
expected to result in a Material Adverse Change. Without limiting the generality
of the foregoing, each Loan Party shall, and shall cause each of its
Subsidiaries to, obtain, maintain, renew and comply with all Environmental
Permits applicable to their respective operations and activities,
provided that it shall not be deemed to be a violation of
this Section 8.1.9 if any failure to do so would not result in cease and desist
orders or fines, penalties or other similar liabilities or injunctive relief
which in the aggregate could not reasonably be expected to result in a Material
Adverse Change. 

8.1.10. Use of Proceeds. 

The Loan Parties will use
the proceeds of the Term Loan only for general corporate purposes of the
Borrower and for working capital of the Borrower. The Loan Parties shall not use
the proceeds of the Term Loan for any purposes which contravenes any applicable
Law or any provision hereof.

8.1.11. Additional Financial Covenants. 

In the event that the
Borrower shall amend any of the NJR Revolving Credit Agreement or NJR Note
Agreements, or shall enter into a new, similar agreement providing for the
issuance of unsecured, privately placed notes, which include one or more
financial covenants in addition to those contained in the NJR Revolving Credit
Agreement or NJR Note Agreements on the date hereof, then the Borrower shall
offer to the Lenders to amend this Agreement to include such additional
financial covenant or financial covenants in this Agreement pursuant to an
amendment to this Agreement in form and substance reasonably satisfactory to the
Agent and the Borrower. In such event, the Borrower promptly, upon acceptance of
any offer referred to in the preceding sentence, shall execute and deliver at
its expense an amendment to this Agreement in form and substance reasonably
satisfactory to the Agent and the Borrower evidencing the amendment of this
Agreement to include such additional financial covenant or financial covenants
(any such additional financial covenant so included in this Agreement being
called an “Incorporated
Covenant”). In the event that at
any time and from time to time after the execution of such an amendment with
respect to any Incorporated Covenant, the NJR Revolving Credit Agreement, the
applicable NJR Note Agreement or other similar agreement shall no longer include
such Incorporated Covenant, then upon notice by the Borrower to the Agent, the
Agent and the Lenders shall execute and deliver to the Borrower, at the
Borrower’s expense, an amendment to this Agreement in form and substance
reasonably satisfactory to the Agent and the Borrower evidencing the amendment
of this Agreement to delete such Incorporated Covenant from this Agreement.

49 

8.1.12. Anti-Terrorism Laws; International Trade Law
Compliance. 

(a) No Covered Entity will
become a Sanctioned Person, (b) no Covered Entity, either in its own right or
through any third party, will (A) have any of its assets in a Sanctioned Country
or in the possession, custody or control of a Sanctioned Person in violation of
any Anti-Terrorism Law; (B) do business in or with, or derive any of its income
from investments in or transactions with, any Sanctioned Country or Sanctioned
Person in violation of any Anti-Terrorism Law; (C) engage in any dealings or
transactions prohibited by any Anti-Terrorism Law or (D) use the Loans to fund
any operations in, finance any investments or activities in, or, make any
payments to, a Sanctioned Country or Sanctioned Person in violation of any
Anti-Terrorism Law, (c) the funds used to repay the Obligations will not be
derived from any unlawful activity, (d) each Covered Entity shall comply with
all Anti-Terrorism Laws, and (e) the Borrower shall promptly notify the Agent in
writing upon the occurrence of a Reportable Compliance Event. 

8.2. Negative Covenants. 

The Loan Parties, jointly
and severally, covenant and agree that until payment in full of the Term Loan
and interest thereon, satisfaction of all of the Loan Parties’ other Obligations
hereunder and termination of the Commitments, the Loan Parties shall comply with
the following negative covenants: 

8.2.1. Indebtedness. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, at any
time create, incur, assume or suffer to exist any Indebtedness, except:

(i) Indebtedness under the
Loan Documents; 

(ii) Existing Indebtedness
as set forth on Schedule
8.2.1 including any amendments,
extensions, renewals or refinancings thereof, so long as at the time of the
incurrence of such Indebtedness, the Borrower is in compliance with Section
8.2.12 [Maximum Leverage Ratio] and no Event of Default would be caused thereby;

(iii) Indebtedness of a
Loan Party to another Loan Party; 

(iv) Indebtedness in
respect of capitalized leases (including, without limitation, capitalized leases
for metered assets) not to exceed at any time outstanding in the aggregate for
the Loan Parties and their Unregulated Subsidiaries $100,000,000; 

(v) Indebtedness of a Loan
Party arising under any Hedging Transaction; 

(vi) Indebtedness, at any
time outstanding not to exceed $35,000,000, secured by Liens permitted by
Section 8.2.2(i); 

(vii) Indebtedness, secured
by Purchase Money Security Interests as permitted by clause (xi) of the
definition of Permitted Liens, not to exceed at any time outstanding in the
aggregate for the Loan Parties and their Unregulated Subsidiaries $20,000,000;

(viii) Indebtedness not to
exceed at any time outstanding in the aggregate for the Loan Parties and their
Unregulated Subsidiaries $75,000,000, so long as such Indebtedness: (a) is
Indebtedness of an Acquired Person which existed prior to the consummation of
the Permitted Acquisition in connection with which such Acquired Person was
acquired by a Loan Party and such Indebtedness was not incurred in contemplation
of or in connection with such Permitted Acquisition; and (b) if secured, is
secured by Liens permitted by clause (xii) of the definition of Permitted Liens;

50 

(ix) The NJR Notes,
including any amendments, extensions, renewals or refinancings thereof, so long
as at the time of the incurrence of such Indebtedness, the Borrower is in
compliance with Section 8.2.12 [Maximum Leverage Ratio] and no Event of Default
would be caused thereby; 

(x) Additional NJR Notes,
in each case including any amendments, extensions, renewals or refinancings
thereof, so long as at the time of the incurrence of such Indebtedness, the
Borrower is in compliance with Section 8.2.12 [Maximum Leverage Ratio] and no
Event of Default would be caused thereby; 

(xi) Indebtedness of the
Project Subsidiaries; 

(xii) Guaranties permitted
by Section 8.2.3 [Guaranties];

(xiii) Indebtedness under
the NJR Revolving Credit Agreement, including any amendments, extensions,
renewals or refinancings thereof, so long as at the time of the incurrence of
such Indebtedness, the Borrower is in compliance with Section 8.2.12 [Maximum
Leverage Ratio] and no Event of Default would be caused thereby; and 

(xiv) Additional
Indebtedness of the Loan Parties (including, but not limited to, any Guaranty of
Indebtedness of Project Subsidiaries) incurred after the Closing Date, in each
case including any amendments, extensions, renewals or refinancings thereof, so
long as at the time of the incurrence of such Indebtedness, the Borrower is in
compliance with Section 8.2.12 [Maximum Leverage Ratio] both before and after
such incurrence and no Event of Default may be caused thereby. 

8.2.2. Liens. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries (other than
Project Subsidiaries) to, at any time create, incur, assume or suffer to exist
any Lien on any of its property or assets, tangible or intangible, now owned or
hereafter acquired, or agree or become liable to do so, except: 

(i) Permitted Liens; and

(ii) Extensions or renewals
of any Permitted Lien provided that the
principal amount of the Indebtedness secured by such Permitted Lien shall
continue to be permitted by Section 8.2.1 [Indebtedness]. 

8.2.3. Guaranties. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, at any
time, directly or indirectly, become or be liable in respect of any Guaranty, or
assume, guarantee, become surety for, endorse or otherwise agree, become or
remain directly or contingently liable upon or with respect to any obligation or
liability of any other Person, except for 

51 

(i) Guaranties of
Indebtedness of the Loan Parties permitted pursuant to Section 8.2.1
[Indebtedness]; provided however, that neither Indebtedness under the NJR Revolving Credit Agreement nor
the NJR Notes shall be guaranteed by any Loan Party or any Subsidiary of a Loan
Party unless such Person is also a Guarantor; 

(ii) Guaranties of any Loan
Party or any of its Unregulated Subsidiaries of obligations of NJR Energy
Services Company arising under any Hedging Transaction;

(iii) Guaranties of any
Loan Party of Indebtedness of any Project Subsidiary so long as the Indebtedness
represented by such Guaranty is permitted by Section 8.2.1 (excluding clause
(xi) thereof); and 

(iv) Guaranties by the
Borrower of various obligations of any of its Unregulated Subsidiaries in
connection with any transaction arising in connection with its ordinary course
of business as conducted on the Closing Date or as otherwise permitted to be
conducted pursuant to Section 8.2.9 [Continuation of or Change in Business].

8.2.4. Loans and Investments. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, at any
time make or suffer to remain outstanding any loan or advance to, or purchase,
acquire or own any stock, bonds, notes or securities of, or any partnership
interest (whether general or limited) or limited liability company interest in,
or any other investment or interest in, or make any capital contribution to, any
other Person, or agree, become or remain liable to do any of the foregoing (any
of the foregoing being an “Investment”), except:

(i) trade credit extended
on usual and customary terms in the ordinary course of business; 

(ii) advances to employees
to meet expenses incurred by such employees in the ordinary course of business;

(iii) Permitted
Investments; 

(iv) loans, advances and
Investments in other Loan Parties and in the Project Subsidiaries; and

(v) any Investment which
constitutes a Permitted Acquisition in accordance with Section 8.2.5
[Liquidations, Mergers, Consolidations, Acquisitions].

8.2.5. Liquidations, Mergers, Consolidations,
Acquisitions. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to,
dissolve, liquidate or wind-up its affairs, or become a party to any merger or
consolidation, or acquire by purchase, lease or otherwise all or substantially
all of the assets or capital stock of any other Person, provided that: 

(1) any Loan Party other
than the Borrower may consolidate, liquidate or merge into another Loan Party
which is wholly-owned by one or more of the other Loan Parties, 

52 

(2) any Inactive Subsidiary
of the Borrower may dissolve, liquidate or wind-up its affairs or any Inactive
Subsidiary of the Borrower may consolidate or merge into: (a) any other Inactive
Subsidiary of the Borrower, or (b) any Loan Party, other than the Borrower, and

(3) any Loan Party may
acquire, whether by purchase or by merger, (A) all of the ownership interests of
another Person or (B) substantially all of assets of another Person or of a
business or division of another Person (each a “Permitted Acquisition”), provided that each of the
following requirements is met: 

a. if the Loan Parties are
acquiring the ownership interests in such Person, such Person (other than
Project Subsidiaries) shall execute a Guarantor Joinder and join this Agreement
as a Guarantor pursuant to and otherwise comply with Section 11.19 [Joinder of
Guarantors] to the extent required by such Section; 

b. the board of directors
or other equivalent governing body of such Person shall have approved such
Permitted Acquisition and, if the Loan Parties shall use any portion of the
Loans to fund such Permitted Acquisition, the Loan Parties also shall have
delivered to the Lenders written evidence of the approval of the board of
directors (or equivalent body) of such Person for such Permitted Acquisition;

c. the business acquired,
or the business conducted by the Person whose ownership interests are being
acquired, as applicable, shall be substantially the same as one or more line or
lines of business conducted by the Loan Parties or otherwise be compliant with
Section 8.2.9 [Continuation of or Change in Business]; 

d. no Potential Default or
Event of Default shall exist immediately prior to and after giving effect to
such Permitted Acquisition; 

e. the Borrower shall be in
compliance with the covenants contained in Section 8.2.12 [Maximum Leverage
Ratio] after giving effect to such Permitted Acquisition on a pro forma basis
and, if the total consideration of such Permitted Acquisition exceeds an amount
equal to five percent (5%) of the consolidated assets of the Borrower and its
Subsidiaries as determined on a consolidated basis in accordance with GAAP, by
delivering at least five (5) Business Days prior to such Permitted Acquisition a
certificate in the form of Exhibit
8.2.5 (the “Acquisition Compliance
Certificate”) evidencing such
compliance; and 

f. if the total
consideration of such Permitted Acquisition exceeds five percent (5%) of the
consolidated assets of the Borrower and its Subsidiaries as determined on a
consolidated basis in accordance with GAAP, the Loan Parties shall deliver to
the Agent as soon as available prior to (if practicable), or in any event within
five (5) Business Days after, the consummation of such Permitted Acquisition
copies of any agreements entered into or proposed to be entered into by such
Loan Parties in connection with such Permitted Acquisition and shall deliver to
the Agent, as soon as available, such other information about such Person or its
assets as the Agent or any Lender may reasonably require. 

8.2.6. Dispositions of Assets or Unregulated
Subsidiaries. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, sell,
convey, assign, lease, abandon or otherwise transfer or dispose of, voluntarily
or involuntarily, any of its properties or assets, tangible or intangible
(including sale, assignment, discount or other disposition of accounts, contract
rights, chattel paper, equipment or general intangibles with or without recourse
or of capital stock, shares of beneficial interest, partnership interests or
limited liability company interests of an Unregulated Subsidiary of such Loan
Party), except: 

(i) transactions involving
the sale of inventory in the ordinary course of business; 

53 

(ii) any sale, transfer or
lease of assets in the ordinary course of business which are no longer necessary
or required in the conduct of such Loan Party’s or such Unregulated Subsidiary’s
business; 

(iii) any sale, transfer or
lease of assets by any Unregulated Subsidiary of such Loan Party to another
Unregulated Subsidiary or to a Loan Party and any sale, transfer or lease of
assets by any Loan Party to any other Loan Party; 

(iv) any sale, transfer or
lease of assets in the ordinary course of business which are replaced by
substitute assets acquired or leased; 

(v) the issuance of shares
of capital stock of the Borrower, and the issuance of shares of capital stock of
(a) any direct or indirect Subsidiary of the Borrower to the Borrower or (b) any
Loan Party to another Loan Party; 

(vi) any sale, transfer or
lease of assets or capital stock of any Inactive Subsidiary of the Borrower;

(vii) any sale, transfer or
lease of assets or capital stock of any Project Subsidiary;

(viii) any sale/leaseback
or other similar tax equity financing arrangement of meter assets or of solar or
wind facilities; provided that the aggregate principal amount of Indebtedness
incurred in sale/leasebacks of solar or wind facilities does not exceed
$100,000,000 at any one time outstanding; and 

(ix) any sale, transfer or
lease of assets, other than those specifically excepted pursuant to clauses (i)
through (viii) above, by any Loan Party or any Unregulated Subsidiary of a Loan
Party, provided that (i) at the time of any disposition, no Event
of Default shall exist or shall result from such disposition, and (ii) the
aggregate net book value of all assets so sold by the Loan Parties and their
Unregulated Subsidiaries shall not exceed in any twelve (12) consecutive month
period ten percent (10%) of the consolidated assets of the Borrower and its
Subsidiaries as determined on a consolidated basis in accordance with GAAP.

8.2.7. Affiliate Transactions. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, enter
into or carry out any transaction (including purchasing property or services
from or selling property or services to any Affiliate of any Loan Party or other
Person) with any Affiliate of Borrower or any Loan Party unless such transaction
is not otherwise prohibited by this Agreement, is entered into in the ordinary
course of business upon fair and reasonable arm’s-length terms and conditions
and is in accordance with all applicable Law other than (a) payment of
reasonable compensation (including reasonable bonus and other reasonable
incentive arrangements) to officers and employees; (b) reasonable directors’
fees; (c) Restricted Payments permitted pursuant to Section 8.2.13; (d) reimbursement of employee travel and lodging
costs and other business expenses incurred in the ordinary course of business;
(e) Investments permitted by Sections 8.2.4; (f)
transactions with any Person that is an Affiliate solely by reason of the
ownership by the Borrower or any of its Subsidiaries of equity interests of such
Person; and (g) Indebtedness permitted by Section 8.2.1. 

54 

8.2.8. Subsidiaries, Partnerships and Joint
Ventures. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, own or
create directly or indirectly any Subsidiaries other than (i) any Subsidiary
which is a Regulated Entity, (ii) any Subsidiary which is an Inactive Subsidiary
of the Borrower, (iii) Conserve to Preserve Foundation, a non-profit corporation
organized under the laws of the State of New Jersey, (iv) any Subsidiary which
has joined this Agreement as Guarantor on the Closing Date, (v) any Project
Subsidiary, and (vi) any Subsidiary formed after the Closing Date which joins
this Agreement as a Guarantor pursuant to Section 11.19 [Joinder of Guarantors]
or which is not required by Section 11.19 to become a Guarantor. Each of the
Loan Parties shall not become or agree to (1) become a general or limited
partner in any general or limited partnership, except that the Loan Parties may
be general or limited partners in other Loan Parties, (2) become a member or
manager of, or hold a limited liability company interest in, a limited liability
company, except that the Loan Parties may be members or managers of, or hold
limited liability company interests in, other Loan Parties, or (3) become a
joint venturer or hold a joint venture interest in any joint venture, except in
each case in respect of business permitted by Section 8.2.9. 

8.2.9. Continuation of or Change in
Business. 

Each of the Loan Parties
shall not, and shall not permit any of its Unregulated Subsidiaries to, engage
in any business other than the sale, generation, transmission or storage of
energy, the provision of energy related services, any other business conducted
and operated by such Loan Party or Unregulated Subsidiary during the present
fiscal year, and any line of business or business activity related, ancillary or
complementary to any of the foregoing. 

8.2.10. Plans and Benefit Arrangements. 

Each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, engage in a
Prohibited Transaction with any Plan, Benefit Arrangement, Multiple Employer
Plan or Multiemployer Plan which, alone or in conjunction with any other
circumstances or set of circumstances, would reasonably be expected to result in
a Material Adverse Change. 

8.2.11. Fiscal Year. 

The Borrower shall not, and
shall not permit any Unregulated Subsidiary (other than Project Subsidiaries) of
the Borrower to, change its fiscal year from the twelve-month period beginning
October 1 and ending September 30 without the prior consent of the Agent, such
consent not to be unreasonably withheld or delayed. 

8.2.12. Maximum Leverage Ratio. 

The Loan Parties shall not
at any time permit the ratio of Consolidated Total Indebtedness of the Borrower
and its Subsidiaries to Consolidated Total Capitalization to exceed 0.65 to
1.00. 

55 

8.2.13. Payment of Dividends; Redemptions. 

The Loan Parties shall not,
and shall not permit any Unregulated Subsidiary to, declare or make any dividend
payment or other distribution of assets, properties, cash, rights, obligations
or securities on account of any shares of any class of capital stock of any Loan
Party, or purchase, redeem or otherwise acquire for value (or permit any of its
Subsidiaries to do so) any shares of any class of capital stock or other
securities of any Loan Party or any warrants, rights or options to acquire any
such shares or other securities, now or hereafter outstanding, except that (a)
the Borrower may (i) declare and make any dividend payment or other distribution
payable in common stock of the Borrower, (ii) purchase, redeem or otherwise
acquire shares of its common stock or warrants, rights or options to acquire any
such shares so long as no Event of Default or Potential Default shall have
occurred and is continuing or would result therefrom, and (iii) declare and make
cash dividends, so long as, after giving effect thereto, no Event of Default
shall have occurred and is continuing, and (b) that (i) any Unregulated
Subsidiary of the Borrower may declare and make any dividend payment or other
distribution to the Borrower or to any other Loan Party, (ii) any Loan Party may
declare and make any dividend payment or other distribution to any other Loan
Party and (iii) any Project Subsidiary may declare and make any dividend payment
or other distribution to any Person. 

8.2.14. Off-Balance Sheet Financing. 

Each Loan Party and each
Unregulated Subsidiary of each Loan Party shall not engage in any off-balance
sheet transaction (i.e., the liabilities in respect of which do not appear on
the liability side of the balance sheet, with such balance sheet prepared in
accordance with GAAP) providing the functional equivalent of borrowed money
(including asset securitizations, sale/leasebacks or Synthetic Leases (other
than any sale/leaseback transaction, Synthetic Lease or other similar tax equity
financing arrangement entered into, in any case, with respect to meter assets or
solar or wind facilities and which transaction is otherwise permitted by this
Agreement)) with liabilities in excess, in the aggregate for the Borrower and
its Subsidiaries as of any date of determination, of ten percent (10%) of the
total assets of the Borrower and its Subsidiaries, determined and consolidated
in accordance with GAAP as of the date of determination. For purposes of this
Section 8.2.14, (a) “Synthetic
Lease” shall mean any lease
transaction under which the parties intend that (i) the lease will be treated as
an “operating lease” by the lessee pursuant to Statement of Financial Accounting
Standards No. 13, as amended, or appropriate successor thereto, and (ii) the
lessee will be entitled to various tax benefits ordinarily available to owners
(as opposed to lessees) of like property and (b) the amount of any lease which
is not a capital lease in accordance with GAAP is the aggregate amount of
minimum lease payments due pursuant to such lease for any non-cancelable portion
of its term. 

8.3. Reporting Requirements. 

The Loan Parties, jointly
and severally, covenant and agree that until payment in full of the Loans and
interest thereon, satisfaction of all of the Loan Parties’ other Obligations
hereunder and under the other Loan Documents and termination of the Commitments,
the Loan Parties will furnish or cause to be furnished to the Agent and each of
the Lenders: 

8.3.1. Quarterly Financial Statements. 

As soon as available and in
any event within forty-five (45) calendar days after the end of each of the
first three fiscal quarters in each fiscal year (or such earlier or later date,
from time to time established by the SEC in accordance with the Securities
Exchange Act of 1934, as amended, or within fifty (50) days in the event the
Borrower shall file its Form 10-Q within the extension period pursuant to Rule
12b-25 of the Securities Exchange Act of 1934, as amended), financial statements
of the Borrower, consisting of a consolidated balance sheet as of the end of
such fiscal quarter and related consolidated statements of income, stockholders’
equity and cash flows for the fiscal quarter then ended and the fiscal year
through that date, all in reasonable detail and certified (subject to normal
year-end audit adjustments) by the Chief Executive Officer, President or Chief
Financial Officer of the Borrower as having been prepared in accordance with
GAAP, consistently applied, and setting forth in comparative form the respective
financial statements for the corresponding date and period in the previous
fiscal year. The Loan Parties will be deemed to have complied with the delivery
requirements of this Section 8.3.1 if within forty-five (45) days after the end
of their fiscal quarter (or such earlier or later date, from time to time
established by the SEC in accordance with the Securities Exchange Act of 1934,
as amended, or within fifty (50) days in the event the Borrower shall file its
Form 10-Q within the extension period pursuant to Rule 12b-25 of the Securities
Exchange Act of 1934, as amended) (commencing with the fiscal quarter ending
September 30, 2017), the Borrower delivers to the Agent and each of the Lenders
a copy of its Form 10-Q as filed with the SEC and the financial statements
contained therein meets the requirements described in this Section. 

56 

8.3.2. Annual Financial Statements. 

As soon as available and in
any event within ninety (90) days after the end of each fiscal year of the
Borrower (or such earlier or later date, from time to time established by the
SEC in accordance with the Securities Exchange Act of 1934, as amended, or
within one hundred five (105) days in the event the Borrower shall file its
Annual Report on Form 10-K within the extension period pursuant to Rule 12b-25
of the Securities Exchange Act of 1934, as amended), financial statements of the
Borrower consisting of a consolidated balance sheet as of the end of such fiscal
year, and related consolidated statements of income, stockholders’ equity and
cash flows for the fiscal year then ended, all in reasonable detail and setting
forth in comparative form the financial statements as of the end of and for the
preceding fiscal year, and certified by independent certified public accountants
of nationally recognized standing satisfactory to the Agent. The certificate or
report of accountants shall be free of qualifications (other than any
consistency qualification that may result from a change in the method used to
prepare the financial statements as to which such accountants concur) and shall
not indicate the occurrence or existence of any event, condition or contingency
which would materially impair the prospect of payment or performance of any
covenant, agreement or duty of any Loan Party under any of the Loan Documents.
The Loan Parties will be deemed to have complied with the delivery requirements
of this Section 8.3.2 if within ninety (90) days (or one hundred five (105)
days, if applicable) after the end of their fiscal year (or such earlier or
later date, from time to time established by the SEC in accordance with the
Securities Exchange Act of 1934, as amended), the Borrower delivers to the Agent
and each of the Lenders a copy of its Annual Report on Form 10-K as filed with
the SEC and the financial statements and certification of public accountants
contained therein meets the requirements described in this Section. 

8.3.3. Certificate of the Borrower. 

Concurrently with the
financial statements of the Borrower furnished to the Agent and to the Lenders
pursuant to Sections 8.3.1 [Quarterly Financial Statements] and 8.3.2 [Annual
Financial Statements], a certificate (each a “Compliance Certificate”) of the Borrower signed by the Chief Executive
Officer, Chief Financial Officer or Treasurer of the Borrower in the form of
Exhibit 8.3.3. 

8.3.4. Notice of Default. 

Promptly after any
Authorized Officer (or other executive officer) of any Loan Party has learned of
the occurrence of an Event of Default or Potential Default, a certificate signed
by the Chief Executive Officer, President or Chief Financial Officer of such
Loan Party setting forth the details of such Event of Default or Potential
Default and the action which the such Loan Party proposes to take with respect
thereto. 

57 

8.3.5. Notice of Litigation. 

Promptly after the
commencement thereof, notice of (i) all actions, suits, proceedings or
investigations before or by any Governmental Body or any other Person against
any Loan Party or Subsidiary of any Loan Party, involve a claim or series of
claims in excess of $15,000,000 or, (ii) any Environmental Complaint,
individually or in the aggregate exceed $15,000,000, and in either case which if
adversely determined could reasonably be expected to result in a Material
Adverse Change. 

8.3.6. Notice of Change in Debt Rating. 

Within five (5) Business
Days after Standard & Poor’s or Moody’s announces a change in the Debt
Rating of New Jersey Natural Gas, notice of such change. The Borrower will
deliver, together with such notice, a copy of any written notification which
Borrower or New Jersey Natural Gas received from the applicable rating agency
regarding such change of Debt Rating. 

8.3.7. Sale of Assets. 

At least thirty (30)
calendar days prior thereto, notice with respect to any proposed sale or
transfer of assets pursuant to Section 8.2.6(ix) where the consideration for
such sale or transfer of assets is in excess of $10,000,000. 

8.3.8. Budgets, Forecasts, Other Reports and
Information. 

Promptly upon their
becoming available to the Borrower: 

(i) any reports, notices or
proxy statements generally distributed by the Borrower to its stockholders on a
date no later than the date supplied to such stockholders, 

(ii) regular or periodic
reports, including Forms 10-K, 10-Q and 8-K, registration statements and
prospectuses, filed by the Borrower with the SEC, 

(iii) to the extent not
previously reported in regular or periodic reports, including Forms 10-K, 10-Q
and 8-K, registration statements and prospectuses, filed by the Borrower with
the SEC, the Borrower shall notify the Lenders promptly of the enactment or
adoption of any Law which may result in a Material Adverse Change, 

(iv) to the extent
requested by the Agent or any Lender, the annual budget and any forecasts or
projections of the Loan Parties, and 

(v) with respect to the
Hedging Transaction activities of the Loan Parties and their Subsidiaries, to
the extent not previously reported in regular or periodic reports, including
Forms 10-K, 10-Q and 8-K, registration statements and prospectuses, filed by the
Borrower with the SEC, such other reports and information as any of the Lenders
may from time to time reasonably request. 

8.3.9. Notices Regarding Plans and Benefit
Arrangements. 

58 

8.3.9.1. Certain Events. 

Promptly upon becoming
aware of the occurrence thereof, notice (including the nature of the event and,
when known, any action taken or threatened by the Internal Revenue Service or
the PBGC with respect thereto) of: 

(i) any Reportable Event
with respect to the Borrower or any other member of the ERISA Group, which could
reasonably be expected to result in a Material Adverse Change, 

(ii) any Prohibited
Transaction which could subject the Borrower or any other member of the ERISA
Group to a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax
imposed by Section 4975 of the Internal Revenue Code in connection with any
Plan, any Benefit Arrangement or any trust created thereunder which penalty or
tax could reasonably be expected to result in a Material Adverse Change,

(iii) any assertion of
material withdrawal liability with respect to any Multiemployer Plan, which
could reasonably be expected to result in a Material Adverse Change, 

(iv) any partial or
complete withdrawal from a Multiemployer Plan by the Borrower or any other
member of the ERISA Group under Title IV of ERISA (or assertion thereof), which
could reasonably be expected to result in a Material Adverse Change, 

(v) any cessation of
operations (by the Borrower or any other member of the ERISA Group) at a
facility in the circumstances described in Section 4062(e) of ERISA, which could
reasonably be expected to result in a Material Adverse Change, 

(vi) withdrawal by the
Borrower or any other member of the ERISA Group from a Multiple Employer Plan,
which could reasonably be expected to result in a Material Adverse Change,

(vii) a failure by the
Borrower or any other member of the ERISA Group to make a payment to a Plan
required to avoid imposition of a Lien under Section 303(k) of ERISA,

(viii) the adoption of an
amendment to a Plan requiring the provision of security to such Plan pursuant to
Section 307 of ERISA, or 

(ix) any change in the
actuarial assumptions or funding methods used for any Plan, where the effect of
such change is to materially increase or materially reduce the unfunded benefit
liability or obligation to make periodic contributions, except for any such
change required under applicable Law. 

8.3.9.2. Notices of Involuntary Termination and Annual
Reports. 

Promptly after receipt
thereof, copies of (a) all notices received by the Borrower or any other member
of the ERISA Group of the PBGC’s intent to terminate any Plan administered or
maintained by the Borrower or any member of the ERISA Group, or to have a
trustee appointed to administer any such Plan; and (b) at the request of the
Agent or any Lender each annual report (IRS Form 5500 series) and all
accompanying schedules, the most recent actuarial reports, the most recent
financial information concerning the financial status of each Plan administered
or maintained by the Borrower or any other member of the ERISA Group, and
schedules showing the amounts contributed to each such Plan by or on behalf of
the Borrower or any other member of the ERISA Group in which any of their
personnel participate or from which such personnel may derive a benefit, and
each Schedule B (Actuarial Information) to the annual report filed by the
Borrower or any other member of the ERISA Group with the Internal Revenue
Service with respect to each such Plan. 

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8.3.9.3. Notice of Voluntary Termination. 

Promptly upon the filing
thereof, copies of any Form 5310, or any successor or equivalent form to Form
5310, filed with the PBGC in connection with the termination of any Plan.

8.3.10. Other Information. 

Such additional information
as may be reasonably requested in writing by the Agent. 

8.3.11. Electronic Delivery. 

Documents required to be
delivered pursuant to this Section 8.3 (other than notices required to be
delivered pursuant to Section 8.3.4) shall be deemed to have been delivered on
the date (i) on which the Borrower posts such documents, or provides a link
thereto on the Borrower’s website on the Internet; or (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Agent have access (whether a
commercial, third-party website or whether sponsored by the Agent), provided,
that, in each case the Borrower shall promptly notify the Agent that such
documents have been so posted. 

9.
DEFAULT

9.1. Events of Default. 

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

9.1.1. Payments Under Loan Documents. 

The Borrower shall fail to
pay (i) any principal of the Term Loan (including scheduled installments,
mandatory prepayments or the payment due at maturity) when such principal is due
hereunder or (ii) any interest on the Term Loan or any other amount owing
hereunder or under the other Loan Documents within three (3) Business Days after
such interest, fee, or other amount becomes due in accordance with the terms
hereof or thereof; 

9.1.2. Breach of Warranty. 

Any representation or
warranty made at any time by any of the Loan Parties herein or by any of the
Loan Parties in any other Loan Document, or in any certificate, other instrument
or statement furnished pursuant to the provisions hereof or thereof, shall prove
to have been false or misleading in any material respect as of the time it was
made or furnished; 

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9.1.3. Anti-Terrorism Laws. 

Any representation or
warranty contained in Section 6.1.25 [Anti-Terrorism Laws] is or becomes false
or misleading at any time; 

9.1.4. Breach of Negative Covenants, Visitation Rights or
Borrower’s Existence. 

Any of the Loan Parties
shall default in the observance or performance of any covenant contained in
Section 8.1.6 [Visitation Rights], Section 8.1.12 [Anti-Terrorism Laws;
Informational Trade Compliance] or Section 8.2 [Negative Covenants]; 

9.1.5. Breach of Other Covenants. 

Any of the Loan Parties
shall default in the observance or performance of any other covenant, condition
or provision hereof or of any other Loan Document and such default shall
continue unremedied for a period of thirty (30) days after any Authorized
Officer (or other executive officer) of any Loan Party becomes aware of the
occurrence thereof (such grace period to be applicable only in the event such
default can be remedied by corrective action of the Loan Parties as determined
by the Agent in its reasonable discretion); 

9.1.6. Defaults in Other Agreements or
Indebtedness. 

(i) A default or event of
default shall occur at any time under the terms of any other agreement involving
borrowed money or the extension of credit or any other Indebtedness under which
any Loan Party or Subsidiary of any Loan Party may be obligated as a borrower or
guarantor in excess of $15,000,000 in the aggregate, and such breach, default or
event of default consists of the failure to pay (beyond any period of grace
permitted with respect thereto, whether waived or not) any indebtedness when due
(whether at stated maturity, by acceleration or otherwise) or if such breach or
default permits or causes the acceleration of any indebtedness (whether or not
such right shall have been waived) or the termination of any commitment to lend;

(ii) There shall occur
under the NJNG Credit Agreement or the NJR Revolving Credit Agreement an
“Event of Default” (as such term is defined in the NJNG Credit
Agreement or the NJR Revolving Credit Agreement, respectively);

(iii) A default or event of
default shall occur at any time under the terms of any agreement involving any
off balance sheet transaction (including any asset securitization,
sale/leaseback transaction, or Synthetic Lease (other than any sale/leaseback
transaction, Synthetic Lease or other similar tax equity financing arrangement
entered into, in any case, with respect to meter assets or solar or wind
facilities and which transaction is otherwise permitted by this Agreement)) with
obligations in the aggregate thereunder for which any Loan Party or Subsidiary
of any Loan Party may be obligated in excess of $15,000,000, and such breach,
default or event of default consists of the failure to pay (beyond any period of
grace permitted with respect thereto, whether waived or not) any obligation when
due (whether at stated maturity, by acceleration or otherwise) or if such breach
or default permits or causes the acceleration of any obligation (whether or not
such right shall have been waived) or the termination of any such agreement;

9.1.7. Final Judgments or Orders. 

Any final judgments or
orders for the payment of money in excess of $15,000,000 in the aggregate, to
the extent not covered by insurance, shall be entered against any Loan Party by
a court having jurisdiction in the premises, which judgment is not discharged,
vacated, bonded or stayed pending appeal within a period of thirty (30) days
from the date of entry; 

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9.1.8. Loan Document Unenforceable. 

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

9.1.9. Uninsured Losses; Proceedings Against
Assets. 

The assets of any Loan
Party are attached, seized, levied upon or subjected to a writ or distress
warrant; or such come within the possession of any receiver, trustee, custodian
or assignee for the benefit of creditors and the same is not cured within thirty
(30) days thereafter or otherwise fully bonded or covered by insurance (subject
to reasonable and customary deductible amounts); 

9.1.10. Notice of Lien or Assessment. 

A notice of Lien or
assessment in excess of $15,000,000 which is not a Permitted Lien or
Environmental Complaint in excess of $15,000,000 is filed of record with respect
to all or any part of any of the Loan Parties’ or any of their Subsidiaries’
assets by the United States, or any department, agency or instrumentality
thereof, or by any state, county, municipal or other governmental agency,
including the PBGC, or any taxes or debts owing at any time or times hereafter
to any one of these becomes payable and the same is not paid, otherwise vacated,
bonded or discharged within thirty (30) days after the same becomes payable;

9.1.11. Insolvency. 

Any Loan Party or any
Significant Subsidiary of a Loan Party ceases to be Solvent or admits in writing
to a creditor or Governmental Body its inability to pay its debts as they
mature; 

9.1.12. Events Relating to Plans and Benefit
Arrangements. 

Any of the following
occurs: (a) any Reportable Event; (b) proceedings shall have been instituted or
other action taken to terminate any Plan in a distress termination; (c) a
trustee shall be appointed by the PBGC to administer or liquidate any Plan; (d)
the PBGC shall give notice of its intent to institute proceedings to terminate
any Plan or Plans or to appoint a trustee to administer or liquidate any Plan;
and, in the case of the occurrence of (a), (b), (c) or (d) above, which could
reasonably be expected to result in a Material Adverse Change; (e) the Borrower
or any member of the ERISA Group shall fail to make any contributions when due
to a Plan or a Multiemployer Plan; (f) the Borrower or any other member of the
ERISA Group shall withdraw completely or partially from a Multiemployer Plan;
(g) the Borrower or any other member of the ERISA Group shall withdraw (or shall
be deemed under Section 4062(e) of ERISA to withdraw) from a Multiple Employer
Plan; or (h) any applicable Law is adopted, changed or interpreted by any
Official Body with respect to or otherwise affecting one or more Plans, Multiple
Employer Plans Multiemployer Plans or Benefit Arrangements and, in each case,
such occurrence could reasonably be expected to result in a Material Adverse
Change; 

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9.1.13. Cessation of Business. 

Any Loan Party or a
Significant Subsidiary of a Loan Party ceases to conduct its business as
contemplated, except as expressly permitted under Section 8.2.5 [Liquidations,
Mergers, Etc.], Section 8.2.6 [Disposition of Assets or Unregulated
Subsidiaries] or Section 8.2.9 [Continuation of or Change of Business] or any
Loan Party or Subsidiary of a Loan Party is enjoined, restrained or in any way
prevented by court order from conducting all or any material part of its
business and such injunction, restraint or other preventive order is not
dismissed within thirty (30) days after the entry thereof; 

9.1.14. Change of Control. 

(i) Any person or group of
persons (within the meaning of Sections 13(d) or 14(a) of the Securities
Exchange Act of 1934, as amended) shall have acquired beneficial ownership of
(within the meaning of Rule 13d-3 promulgated by the SEC under said Act) 25% or
more of the voting capital stock of the Borrower (provided that, for purposes of calculating the acquisition of beneficial
ownership, any transfer of voting stock of the Borrower by any Person or group
of Persons to a Permitted Transferee shall be deemed not to constitute a
conveyance and acquisition of such stock), or (ii) Borrower shall cease to own
100% of the issued and outstanding equity interests of New Jersey Natural Gas;
or (iii) except as permitted by Section 8.2.6, Borrower shall cease to own 51%
or more of the issued and outstanding equity interests in any other Loan Party;

9.1.15. Involuntary Proceedings. 

A proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree
or order for relief in respect of any Loan Party or Significant Subsidiary of a
Loan Party in an involuntary case under any applicable bankruptcy, insolvency,
reorganization or other similar law now or hereafter in effect, or for the
appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or similar official) of any Loan Party or Significant
Subsidiary of a Loan Party for any substantial part of its property, or for the
winding-up or liquidation of its affairs, and such proceeding shall remain
undismissed or unstayed and in effect for a period of sixty (60) consecutive
days or such court shall enter a decree or order granting any of the relief
sought in such proceeding; or 

9.1.16. Voluntary Proceedings. 

Any Loan Party or
Significant Subsidiary of a Loan Party shall commence a voluntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, shall consent to the entry of an order for relief in an
involuntary case under any such law, or shall consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or other similar official) of itself or for any
substantial part of its property or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due, or shall take any action in furtherance of any of the foregoing.

9.1.17. No Limitation on Dividends and Distributions by
Subsidiaries. 

Any Loan Party or
Subsidiary of a Loan Party (including, without limitation, New Jersey Natural
Gas) enters into or otherwise agrees to be bound by any agreement not to pay
dividends or make distributions to the Borrower, except for the restrictions
that are no more onerous than the restrictions set forth in this Agreement and
the restrictions set forth in the Mortgage Indenture, in each case as such
restrictions exist as of the Closing Date. 

63 

9.2. Consequences of Event of Default. 

9.2.1. Events of Default Other Than Bankruptcy,
Insolvency or Reorganization Proceedings. 

If an Event of Default
specified under Sections 9.1.1 [Payments Under Loan Documents] through 9.1.13
[Change of Control] or Section 9.1.16 [No Limitation on Dividends and
Distributions by Subsidiaries] shall occur and be continuing, the Lenders and
the Agent shall be under no further obligation to make the Term Loan and the
Agent may, and upon the request of the Required Lenders shall, by written notice
to the Borrower, take one or more of the following actions: (i) terminate the
Commitments and thereupon the Commitments shall be terminated and of no further
force and effect or (ii) declare the unpaid principal amount of the Notes and
the Term Loan then outstanding and all interest accrued thereon, any unpaid fees
and all other Indebtedness of the Borrower to the Lenders hereunder and
thereunder to be forthwith due and payable, and the same shall thereupon become
and be immediately due and payable to the Agent for the benefit of each Lender
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived. Upon the curing of all existing Events of
Default to the satisfaction of the Required Lenders, the Agent shall return such
cash collateral to the Borrower; and 

9.2.2. Bankruptcy, Insolvency or Reorganization
Proceedings. 

If an Event of Default
specified under Section 9.1.14 [Involuntary Proceedings] or 9.1.15 [Voluntary
Proceedings] shall occur, the Commitments shall automatically terminate and be
of no further force and effect, the Agent and the Lenders shall be under no
further obligations to make the Term Loan and the unpaid principal amount of the
Term Loan then outstanding and all interest accrued thereon, any unpaid fees and
all other Indebtedness of the Borrower to the Lenders hereunder and thereunder
shall be immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived; and 

9.2.3. Set-off. 

If an Event of Default
shall occur and be continuing, any Lender to whom any Obligation is owed by any
Loan Party hereunder or under any other Loan Document or any participant of such
Lender which has agreed in writing to be bound by the provisions of Section
5.2.1 [Sharing of Payments by Lenders] and any branch, Subsidiary or Affiliate
of such Lender or participant anywhere in the world shall have the right, in
addition to all other rights and remedies available to it, without notice to
such Loan Party, to set-off against and apply to the then unpaid balance of all
the Loans and all other Obligations of the Borrower and the other Loan Parties
hereunder or under any other Loan Document any debt owing to, and any other
funds held in any manner for the account of, the Borrower or such other Loan
Party by such Lender or participant or by such branch, Subsidiary or Affiliate,
including all funds in all deposit accounts (whether time or demand, general or
special, provisionally credited or finally credited, or otherwise) now or
hereafter maintained by the Borrower or such other Loan Party for its own
account (but not including funds held in custodian or trust accounts) with such
Lender or participant or such branch, Subsidiary or Affiliate. Such right shall
exist whether or not any Lender or the Agent shall have made any demand under
this Agreement or any other Loan Document, whether or not such debt owing to or
funds held for the account of the Borrower or such other Loan Party is or are
matured or unmatured and regardless of the existence or adequacy of any Guaranty
or any other security, right or remedy available to any Lender or the Agent; and

64 

9.2.4. Suits, Actions, Proceedings. 

If an Event of Default
shall occur and be continuing, and whether or not the Agent shall have
accelerated the maturity of the Term Loan pursuant to any of the foregoing
provisions of this Section 9.2 [Consequences of Event of Default], the Agent or
any Lender, if owed any amount with respect to the Term Loan, may proceed to
protect and enforce its rights by suit in equity, action at law and/or other
appropriate proceeding, whether for the specific performance of any covenant or
agreement contained in this Agreement or the other Loan Documents; and

9.2.5. Application of Proceeds; Collateral
Sharing. 

9.2.5.1. Application of Proceeds. 

From and after the date on
which the Agent has taken any action pursuant to this Section 9.2 and until all
Obligations of the Loan Parties have been paid in full, any and all proceeds
received by the Agent from the exercise of any remedy by the Agent, shall be
applied as follows: 

(i) first, to reimburse the
Agent and the Lenders for out-of-pocket costs, expenses and disbursements,
including reasonable attorneys’ and paralegals’ fees and legal expenses,
incurred by the Agent or the Lenders in connection with collection of any
Obligations of any of the Loan Parties under any of the Loan Documents;

(ii) second, to the
repayment of all Obligations then due and unpaid of the Loan Parties to the
Lenders under this Agreement in respect of interest in such manner as the Agent
may determine in its discretion; and 

(iii) third, to the
repayment of all Obligations then due and unpaid of the Loan Parties to the
Lenders incurred under this Agreement or any of the other Loan Documents, or
under any Lender Provided Interest Rate Hedge or Other Lender Provided Financial
Service Product or otherwise, whether of principal, interest, fees, expenses or
otherwise (in each case to the extent not covered by the preceding provisions of
this subsection), in such manner as the Agent may determine in its discretion;
and 

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

9.2.5.2. Collateral Sharing. 

All Liens granted under
each Loan Document (the “Collateral Documents”)
shall secure ratably and on a pari
passu basis (i) the Obligations
in favor of the Agent and the Lenders hereunder and (ii) the Obligations
incurred by any of the Loan Parties in favor of any Lender and any Lender’s
Affiliates which provides a Lender Provided Interest Rate Hedge or Other Lender
Provided Financial Service Product (the “IRH Provider”). The Agent
under the Collateral Documents shall be deemed to serve as the collateral agent
(the “Collateral
Agent”) for the IRH Provider and
the Lenders hereunder, provided that the
Collateral Agent shall comply with the instructions and directions of the Agent
(or the Lenders under this Agreement to the extent that this Agreement or any
other Loan Documents empowers the Lenders to direct the Agent), as to all
matters relating to the collateral, including the maintenance and disposition
thereof. No IRH Provider (except in its capacity as a Lender hereunder) shall be
entitled or have the power to direct or instruct the Collateral Agent on any
such matters or to control or direct in any manner the maintenance or
disposition of the collateral. 

65 

9.2.6. Other Rights and Remedies. 

In addition to all of the
rights and remedies contained in this Agreement or in any of the other Loan
Documents, the Agent shall have all of the rights and remedies under applicable
Law, all of which rights and remedies shall be cumulative and non-exclusive, to
the extent permitted by Law. The Agent may, and upon the request of the Required
Lenders shall, exercise all post-default rights granted to the Agent and the
Lenders under the Loan Documents or applicable Law. 

10.
THE
AGENT 

10.1. Appointment and Authority. 

Each of the Lenders hereby
irrevocably appoints U.S. Bank National Association to act on its behalf as the
Agent hereunder and under the other Loan Documents and authorizes the Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Agent by the terms hereof or thereof, together with such actions and powers
as are reasonably incidental thereto. The provisions of this Section 10 [The
Agent] are solely for the benefit of the 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. 

10.2. Rights as a Lender. 

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

10.3. Exculpatory Provisions. 

The 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
Agent and each Lender: 

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

(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 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 Agent shall not be required to take any
action that, in its opinion or the opinion of its counsel, may expose the Agent
to liability or that is contrary to any Loan Document or applicable Law; and

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

66 

The 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 Agent shall believe in good faith shall
be necessary, under the circumstances as provided in Sections 11.1
[Modifications, Amendments or Waivers] and 9.2 [Consequences of Event of
Default]) or (ii) in the absence of its own gross negligence or willful
misconduct as determined by a court of competent jurisdiction by a final and
nonappealable judgment. The Agent shall be deemed not to have knowledge of any
Potential Default or Event of Default unless and until notice describing such
Potential Default or Event of Default is given to the Agent by the Borrower or a
Lender. 

The Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or any
other Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the
occurrence of any Potential Default or Event of Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document or (v) the satisfaction
of any condition set forth in Section 7 [Conditions of Lending] or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Agent. 

10.4. Reliance by Agent. 

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

10.5. Delegation of Duties. 

The Agent may perform any
and all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub agents appointed by the
Agent. The Agent and any such sub agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Section 10.5 shall apply to any such
sub agent and to the Related Parties of the Agent and any such sub agent, and
shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as Agent.

10.6. Resignation of Agent. 

The Agent may at any time
give notice of its resignation as Agent to the Lenders and the Borrower. Upon
receipt of any such notice of resignation, the Required Lenders shall have the
right, with approval from the Borrower (so long as no Event of Default has
occurred and is continuing), to appoint a successor, such approval not to be
unreasonably withheld or delayed. If no such successor shall have been so
appointed by the Required Lenders and so approved by the Borrower (as
applicable) and shall have accepted such appointment within thirty (30) days
after the retiring Agent gives notice of its resignation, then the retiring
Agent may on behalf of the Lenders, appoint a successor Agent meeting the
qualifications set forth above; provided that if the Agent
shall notify the Borrower and the Lenders that no qualifying Person has accepted
such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (a) the retiring Agent shall be discharged from
its duties and obligations hereunder and under the other Loan Documents and (b)
all payments, communications and determinations provided to be made by, to or
through the Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Agent as provided for
above in this Section. Upon the acceptance of a successor’s appointment as Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired) Agent, and
the retiring Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom
as provided above in this Section). The fees payable by the Borrower to a
successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the retiring
Agent’s resignation hereunder and under the other Loan Documents, the provisions
of this Section 10.6 and Section 11.3 [Expenses; Indemnity; Damage Waiver] shall
continue in effect for the benefit of such retiring Agent, its sub agents and
their respective Related Parties, in respect of any actions taken or omitted to
be taken by any of them while the retiring Agent was acting as Agent.

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10.7. Non-Reliance on Agent and Other
Lenders. 

Each Lender acknowledges
and agrees that the extensions of credit made hereunder are commercial loans and
not investments in a business enterprise or securities. Each Lender further
represents that it is engaged in making, acquiring or holding commercial loans
in the ordinary course of its business and has, independently and without
reliance upon the Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement as a Lender, and
to make, acquire or hold a portion of the Term Loan hereunder. Each Lender
shall, independently and without reliance upon the Agent or any other Lender or
any of their Related Parties and based on such documents and information (which
may contain material, non-public information within the meaning of the United
States securities laws concerning the Borrower and its Affiliates) as it shall
from time to time deem appropriate, continue to make its own decisions in taking
or not taking action under or based upon this Agreement or any related agreement
or any document furnished hereunder in deciding whether or to the extent to
which it will continue as a Lender or assign or otherwise transfer its rights,
interests and obligations hereunder. 

10.8. [Reserved]. 

10.9. [Reserved]. 

10.10. [Reserved]. 

10.11. Calculations. 

In the absence of gross
negligence or willful misconduct as determined in a final, nonappealable
judgment of a court of competent jurisdiction, the Agent shall not be liable for
any error in computing the amount payable to any Lender whether in respect of
the Loans, fees or any other amounts due to the Lenders under this Agreement. In
the event an error in computing any amount payable to any Lender is made, the
Agent, the Borrower and each affected Lender shall, forthwith upon discovery of
such error, make such adjustments as shall be required to correct such error,
and any compensation therefor will be calculated at the Federal Funds Effective
Rate. 

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10.12. Beneficiaries. 

Except as expressly
provided herein, the provisions of this Section 10 [The Agent] are solely for
the benefit of the Agent and the Lenders, and the Borrower shall not have any
rights to rely on or enforce any of the provisions of this Section 10 [The
Agent]. In performing its functions and duties under this Agreement, the Agent
shall act solely as agent of the Lenders and does not assume and shall not be
deemed to have assumed any obligation toward or relationship of agency or trust
with or for the Borrower.

11.
MISCELLANEOUS

11.1. Modifications, Amendments or
Waivers. 

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

11.1.1. Increase of Commitments; Extension of Maturity
Date. 

Increase the amount of the
Commitment of any Lender hereunder without the consent of such Lender; or extend
the Maturity Date, in each case, without the written consent of each Lender
directly affected thereby; 

11.1.2. Extension of Payment; Reduction of Principal,
Interest or Fees; Modification of Terms of
Payment. 

Extend the time for payment
of principal of or interest on the Term Loan or any fee payable to any Lender;
or reduce the principal amount of or the rate of interest borne by the Term Loan
or reduce any fee payable to any Lender, or otherwise affect the terms of
payment of the principal of or interest on the Term Loan or any fee payable to
any Lender which has a Commitment, in each case, without the written consent of
each Lender directly affected thereby; 

11.1.3. Release of Guarantor. 

Without the written consent
of all Lenders (other than Defaulting Lenders), release any Guarantor from its
Obligations under the Guaranty Agreement or any other security for any of the
Loan Parties’ Obligations other than in connection with the disposition
permitted by Section 8.2.6; provided, however, that the Agent shall, at the request of the Borrower, release any
Guarantor which is not required by Section 11.19 to be a Guarantor.

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11.1.4. Miscellaneous. 

Without the written consent
of all Lenders (other than Defaulting Lenders), amend Section 5.2 [Pro Rata
Treatment of Lenders, Etc.], 9.2.5 [Application of Proceeds; Collateral
Sharing], 10.3 [Exculpatory Provisions, Etc.] or 5.2.1 [Sharing of Payments by
Lenders] or this Section 11.1 [Modifications, Amendments or Waivers], alter any
provision regarding the pro rata treatment of the Lenders, change the definition
of Required Lenders, or change any requirement providing for the Lenders or the
Required Lenders to authorize the taking of any action hereunder; 

provided, that no agreement, waiver or consent which would
modify the interests, rights or obligations of the Agent in its capacity as
Agent shall be effective without the written consent of the Agent; and
provided, further that, if in
connection with any proposed waiver, amendment or modification referred to in
Sections 11.1.1 [Increase of Commitments; Extension of Maturity Date] through
11.1.4 above, the consent of the Required Lenders is obtained but the consent of
one or more of such other Lenders whose consent is required is not obtained
(each a “Non-Consenting
Lender”), then the Borrower shall
have the right to replace any such Non-Consenting Lender with one or more
replacement Lenders pursuant to Section 5.4.2 [Replacement of a Lender].

Notwithstanding anything to
the contrary contained herein, the Agent may, with the consent of the Borrower
only, amend, modify or supplement this Agreement or any of the other Loan
Documents to cure any ambiguity, omission, mistake, defect or inconsistency.

11.2. No Implied Waivers; Cumulative Remedies; Writing
Required. 

No course of dealing and no
delay or failure of the Agent or any Lender in exercising any right, power,
remedy or privilege under this Agreement or any other Loan Document shall affect
any other or future exercise thereof or operate as a waiver thereof, nor shall
any single or partial exercise thereof or any abandonment or discontinuance of
steps to enforce such a right, power, remedy or privilege preclude any further
exercise thereof or of any other right, power, remedy or privilege. The rights
and remedies of the Agent and the Lenders under this Agreement and any other
Loan Documents are cumulative and not exclusive of any rights or remedies which
they would otherwise have. Any waiver, permit, consent or approval of any kind
or character on the part of any Lender of any breach or default under this
Agreement or any such waiver of any provision or condition of this Agreement
must be in writing and shall be effective only to the extent specifically set
forth in such writing.

11.3. Expenses; Indemnity; Damage Waiver. 

11.3.1. Costs and Expenses. 

The Borrower shall pay (i)
all reasonable out of pocket expenses incurred by the Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Agent), and shall pay all fees and time charges and disbursements for attorneys
who may be employees of the Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out of pocket expenses incurred by the Agent
or any Lender (including the fees, charges and disbursements of any counsel for
the Agent or any Lender), and shall pay all fees and time charges for attorneys
who may be employees of the Agent or any Lender in connection with the
enforcement or protection of its rights (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Term Loan made hereunder, including all such out of pocket
expenses incurred during any workout, restructuring or negotiations in respect
of the Term Loan, and (iii) all reasonable out-of-pocket expenses of the Agent’s
regular employees and agents engaged periodically to perform audits of the Loan
Parties’ books, records and business properties. For the avoidance of doubt,
this Section 11.3.1 shall not apply to Taxes, the payment of which is governed
by Section 5.8 [Taxes]. 

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11.3.2. Indemnification by the Borrower. 

The Borrower shall
indemnify the Agent (and any sub-agent thereof), each Lender and each Related
Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses (including the fees, charges
and disbursements of any counsel for any Indemnitee), and shall indemnify and
hold harmless each Indemnitee from all reasonable fees and time charges and
disbursements for attorneys (who may be employees of any Indemnitee), incurred
by any Indemnitee or asserted against any Indemnitee by any third party or by
the Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance or nonperformance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) the Term Loan or the use or proposed use of
the proceeds therefrom, (iii) breach of representations, warranties or covenants
of the Borrower under the Loan Documents, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing,
including any such items or losses relating to or arising under Environmental
Laws or pertaining to environmental matters, whether based on contract, tort or
any other theory, whether brought by a third party or by the Borrower or any
other Loan Party, and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result from a claim
brought by the Borrower or any other Loan Party against an Indemnitee for breach
in bad faith of such Indemnitee’s obligations hereunder or under any other Loan
Document, if the Borrower or such Loan Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction. The Lenders will attempt to minimize the fees and
expenses of legal counsel for the Lenders which are subject to reimbursement by
the Borrower hereunder by considering the usage of one law firm to represent the
Lenders and the Agent if appropriate under the circumstances. For the avoidance
of doubt, this Section 11.3.2 [Indemnification by the Borrower] shall not apply
to Taxes, the payment of which is governed by Section 5.8 [Taxes]. 

11.3.3. Reimbursement by Lenders. 

To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under
Section 11.3.1 [Costs and Expenses] or 11.3.2 [Indemnification by the Borrower]
to be paid by it to the Agent (or any sub-agent thereof) or any Related Party of
any of the foregoing, each Lender severally agrees to pay to the Agent (or any
such sub-agent) or such Related Party, as the case may be, such Lender’s Ratable
Share (determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Agent (or any such sub-agent) in its capacity as such, or against
any Related Party of any of the foregoing acting for the Agent (or any such
sub-agent) in connection with such capacity. 

71 

11.3.4. Waiver of Consequential Damages,
Etc. 

To the fullest extent
permitted by applicable Law, the Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby or the Term Loan or the use of the
proceeds thereof. No Indemnitee referred to in Section 11.3.2 [Indemnification
by Borrower] shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby. 

11.3.5. Payments. 

All amounts due under this
Section shall be payable not later than thirty (30) days after demand therefor.

11.4. Holidays. 

Whenever payment of the
Term Loan to be made or taken hereunder shall be due on a day which is not a
Business Day such payment shall be due on the next Business Day (except as
provided in Section 4.2 [Interest Periods] with respect to Interest Periods
under the LIBOR Rate Option) and such extension of time shall be included in
computing interest and fees, except that the Term Loan shall be due on the
Business Day preceding the Maturity Date if the Maturity Date is not a Business
Day. Whenever any payment or action to be made or taken hereunder (other than
payment of the Term Loan) shall be stated to be due on a day which is not a
Business Day, such payment or action shall be made or taken on the next
following Business Day, and such extension of time shall not be included in
computing interest or fees, if any, in connection with such payment or action.

11.5. Funding by Branch, Subsidiary or
Affiliate. 

11.5.1. Notional Funding. 

Each Lender shall have the
right from time to time, without notice to the Borrower, to deem any branch,
Subsidiary or Affiliate (which for the purposes of this Section 11.5 [Funding by
Branch, Subsidiary or Affiliate] shall mean any corporation or association which
is directly or indirectly controlled by or is under direct or indirect common
control with any corporation or association which directly or indirectly
controls such Lender) of such Lender to have made, maintained or funded the Term
Loan to which the LIBOR Rate Option applies at any time, provided that immediately following (on the assumption that a payment were then
due from the Borrower to such other office), and as a result of such change, the
Borrower would not be under any greater financial obligation pursuant to Section
5.6 [Additional Compensation in Certain Circumstances] or Section 5.8 [Taxes]
than it would have been in the absence of such change. Notional funding offices
may be selected by each Lender without regard to such Lender’s actual methods of
making, maintaining or funding the Term Loan or any sources of funding actually
used by or available to such Lender. 

11.5.2. Actual Funding. 

Each Lender shall have the
right from time to time to make or maintain any portion of the Term Loan by
arranging for a branch, Subsidiary or Affiliate of such Lender to make or
maintain such portion of the Term Loan subject to the last sentence of this
Section 11.5.2. If any Lender causes a branch, Subsidiary or Affiliate to make
or maintain any part of its portion of the Term Loan hereunder, all terms and
conditions of this Agreement shall, except where the context clearly requires
otherwise, be applicable to such portion of the Term Loan to the same extent as
if such portion of the Term Loan were made or maintained by such Lender, but in
no event shall any Lender’s use of such a branch, Subsidiary or Affiliate to
make or maintain any part of the Term Loan hereunder cause such Lender or such
branch, Subsidiary or Affiliate to incur any cost or expenses payable by the
Borrower hereunder or require the Borrower to pay any other compensation to any
Lender (including any expenses incurred or payable pursuant to Section 5.6
[Additional Compensation in Certain Circumstances]) or Section 5.8 [Taxes] which
would otherwise not be incurred. 

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11.6. Notices; Lending Offices. 

Any notice, request,
demand, direction or other communication (for purposes of this Section 11.6
only, a “Notice”) to be given to or made upon any party hereto
under any provision of this Agreement shall be given or made by telephone or in
writing (which includes means of electronic transmission (i.e., “e-mail”) or transmission or by setting forth such Notice on a restricted access
site on the World Wide Web (a “Website Posting”) if
Notice of such Website Posting (including the information necessary to access
such site) has previously been delivered to the applicable parties hereto by
another means set forth in this Section 11.6) in accordance with this Section
11.6. Any such Notice must be delivered to the applicable parties hereto at the
addresses and numbers set forth under their respective names on Schedule 1.1(B) hereof or in accordance with any subsequent
unrevoked Notice from any such party that is given in accordance with this
Section 11.6. Any Notice shall be effective: 

(i) In the case of
hand-delivery, when delivered; 

(ii) If given by mail, four
(4) days after such Notice is deposited with the United States Postal Service,
with first-class postage prepaid, return receipt requested; 

(iii) In the case of a
telephonic Notice, when a party is contacted by telephone, if delivery of such
telephonic Notice is confirmed no later than the next Business Day by hand
delivery, a facsimile or electronic transmission, a Website Posting or overnight
courier delivery of a confirmatory notice (received at or before noon on such
next Business Day); 

(iv) In the case of a
facsimile transmission, when sent to the applicable party’s facsimile machine’s
telephone number if the party sending such Notice receives confirmation of the
delivery thereof from its own facsimile machine; 

(v) In the case of
electronic transmission, when actually received; 

(vi) In the case of a
Website Posting, upon delivery of a Notice of such posting (including the
information necessary to access such web site) by another means set forth in
this Section 11.6; and 

(vii) If given by any other
means (including by overnight courier), when actually received. 

Any Lender giving a Notice
to a Loan Party shall concurrently send a copy thereof to the Agent, and the
Agent shall promptly notify the other Lenders of its receipt of such Notice.

73 

11.7. Severability. 

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

11.8. Governing Law. 

The Loan Documents shall,
pursuant to New York General Obligations Law Section 5-1401, for all purposes be
governed by and construed and enforced in accordance with the laws of the State
of New York. 

11.9. Prior Understanding. 

This Agreement and the
other Loan Documents supersede all prior understandings and agreements, whether
written or oral, between the parties hereto and thereto relating to the
transactions provided for herein and therein, including any prior
confidentiality agreements and commitments. 

11.10. Duration; Survival. 

All representations and
warranties of the Loan Parties contained herein or made in connection herewith
shall survive the making of the Term Loan and shall not be waived by the
execution and delivery of this Agreement, any investigation by the Agent or the
Lenders, the making of the Term Loan or payment in full of the Term Loan. All
covenants and agreements of the Loan Parties contained in Sections 8.1
[Affirmative Covenants], 8.2 [Negative Covenants] and 8.3 [Reporting
Requirements] herein shall continue in full force and effect from and after the
date hereof until termination of the Commitments and payment in full of the Term
Loan. All covenants and agreements of the Borrower contained herein relating to
the payment of principal, interest, premiums, additional compensation or
expenses and indemnification, including those set forth in Section 5 [Payments]
and Sections 11.3.2 [Indemnification by the Borrower] and 11.3.3 [Reimbursement
by Lenders] and shall survive payment in full of the Term Loan and termination
of the Commitments. 

11.11. Successors and Assigns. 

11.11.1. Successors and Assigns Generally. 

The provisions of this
Agreement shall be binding upon, and inure to the benefit of, the parties hereto
and their respective successors and assigns permitted hereby, except that
neither the Borrower nor any other Loan Party may assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
the Agent and each Lender and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (i) to an assignee in accordance with
the provisions of Section 11.11.2 [Assignments by Lenders], (ii) by way of
participation in accordance with the provisions of Section 11.11.4
[Participations], or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of Section 11.11.5 [Certain Pledges; Successors and
Assigns Generally] (and any other attempted assignment or transfer by any party
hereto shall be null and void). Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the
extent provided in Section 11.11.4 [Participations] and, to the extent expressly
contemplated hereby, the Related Parties of each of the Agent and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement. 

74 

11.11.2. Assignments by Lenders. 

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

(i) Minimum Amounts. 

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

(B) in any case not
described in clause (i)(A) of this Section 11.11.2 [Assignments by Lenders], the
aggregate amount of the Commitment (which for this purpose includes such
Lender’s portion of the Term Loan outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the
portion of the Term Loan of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption Agreement with respect
to such assignment is delivered to the Agent or, if “Trade Date” is specified in
the Assignment and Assumption Agreement, as of the Trade Date) shall not be less
than $5,000,000, in the case of any assignment in respect of the Commitment of
the assigning Lender, unless each of the Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed). 

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

(iii) Required Consents. No consent shall be required for any assignment
except for the consent of the Agent (which shall not be unreasonably withheld or
delayed) and the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) an Event of Default has
occurred and is continuing at the time of such assignment or (y) such assignment
is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such
assignment unless it shall object thereto by written notice to the Agent within
five (5) Business Days after having received notice thereof. 

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

75 

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

(vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person (or a holding company, investment vehicle or trust for, or owned and
operated for the primary benefit of, a natural person). 

Subject to acceptance and
recording thereof by the Agent pursuant to Section 11.11.3 [Register], from and
after the effective date specified in each Assignment and Assumption Agreement,
the assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption Agreement, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption Agreement, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption Agreement covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to
the benefits of Sections 4.4 [LIBOR Rate Unascertainable; Etc.], 5.6.1
[Increased Costs Generally], and 11.3 [Expenses, Indemnity; Damage Waiver] with
respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section 11.11.2 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 11.11.4
[Participations]. 

11.11.3. Register. 

The Agent, acting solely
for this purpose as an agent of the Borrower (and such agency being only for tax
purposes), shall maintain at its office in the Unites States a copy of
Assignment and Assumption delivered to it (or the equivalent thereof in
electronic form) and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amounts (and stated
interest) of the portion of the Term Loan owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”). The entries in
the Register shall be conclusive absent manifest error, and the Borrower, the
Agent and the Lenders shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement. The Register shall be available for inspection by each of the
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice. 

11.11.4. Participations. 

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

76 

Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree (other
than as is already provided for herein) to any amendment, modification or waiver
with respect to Sections 11.1.1 [Increase of Commitments; Extension of Maturity
Date] or (b) [Release of Guarantor]) that affects such Participant. The Borrower
agrees that each Participant shall be entitled to the benefits of Sections 4.4
[Libor Rate Unascertainable, Etc.], 5.6.1 [Increased Costs Generally], 5.6.5
[Indemnity] and 5.8 [Taxes] (subject to the requirements and limitations
therein, including the requirements under Section 5.8.6 [Status of Lenders] (it
being understood that the documentation required under Section 5.8.6 [Status of
Lenders] shall be delivered to the participating Lender)) to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
Section 11.11.2 [Assignments by Lenders]; provided that such
Participant (A) agrees to be subject to the provisions of Section 5.4.2
[Replacement of a Lender] as if it were an assignee under Section 11.11.2
[Assignments by Lenders]; and (B) shall not be entitled to receive any greater
payment under Sections 5.6.1 [Increased Costs Generally] or 5.8 [Taxes], with
respect to any participation, than its participating Lender would have been
entitled to receive, except to the extent such entitlement to receive a greater
payment results from a Change in Law that occurs after the Participant acquired
the applicable participation. Each Lender that sells a participation agrees, at
the Borrower’s request and expense, to use reasonable efforts to cooperate with
the Borrower to effectuate the provisions of Section 5.4.2 [Replacement of a
Lender] with respect to any Participant. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.2.3 [Set-off] as
though it were a Lender; provided that such
Participant agrees to be subject to Section 5.2.1 [Sharing of Payments by
Lenders] as though it were a Lender. Each Lender that sells a participation
shall, acting solely for this purpose as an agent of the Borrower, maintain a
register on which it enters the name and address of each Participant and the
principal amounts (and stated interest) of each Participant’s interest in the
portion of the Term Loan or other obligations under the Loan Documents (the
“Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion
of the Participant Register (including the identity of any Participant or any
information relating to a Participant’s interest in any commitments, loans or
its other Obligations under any Loan Document) to any Person except to the
extent that such disclosure is necessary to establish that such commitment, loan
or other Obligation is in registered form under Section 5f.103-1(c) of the
United States Treasury Regulations. The entries in the Participant Register
shall be conclusive absent manifest error, and such Lender shall treat each
Person whose name is recorded in the Participant Register as the owner of such
participation for all purposes of this Agreement notwithstanding any notice to
the contrary. For the avoidance of doubt, the Agent (in its capacity as Agent)
shall have no responsibility for maintaining a Participant Register. 

11.11.5. Certain Pledges; Successors and Assigns
Generally. 

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

11.12. Confidentiality. 

11.12.1. General. 

The Agent and the Lenders
each agree to keep confidential all information obtained from any Loan Party or
its Subsidiaries which is nonpublic and confidential or proprietary in nature
(including any information the Borrower specifically designates as
confidential), except as provided below, and to use such information only in
connection with their respective capacities under this Agreement and for the
purposes contemplated hereby. The Agent and the Lenders shall be permitted to
disclose such information (i) to outside legal counsel, accountants and other
professional advisors who need to know such information in connection with the
administration and enforcement of this Agreement, subject to agreement of such
Persons to maintain the confidentiality, (ii) to assignees and participants as
contemplated by Section 11.11 [Successors and Assigns], and prospective
assignees and participants, provided that prior to
such disclosure, such parties agree to be bound by this undertaking of
confidentiality set forth in this Section 11.12 [Confidentiality], (iii) to the
extent requested by any regulatory authority or, with notice to the Borrower, as
otherwise required by applicable Law or by any subpoena or similar legal
process, or in connection with any investigation or proceeding arising out of
the transactions contemplated by this Agreement, (iv) if it becomes publicly
available other than as a result of a breach of this Agreement or becomes
available and is not reasonably known to be subject to confidentiality
restrictions, (v) if the Borrower shall have consented to such disclosure, or
(vi) after an Event of Default has occurred and commencement of the exercise of
Lenders’ remedies hereunder or under the other Loan Documents, in any action or
proceeding relating to the enforcement of the Lenders’ rights hereunder or
thereunder. 

77 

11.12.2. Sharing Information With Affiliates of the
Lenders. 

Each Loan Party
acknowledges that from time to time financial advisory, investment banking and
other services may be offered or provided to the Borrower or one or more of its
Affiliates (in connection with this Agreement or otherwise) by any Lender or by
one or more Subsidiaries or Affiliates of such Lender and each of the Loan
Parties hereby authorizes each Lender to share any information delivered to such
Lender by such Loan Party and its Subsidiaries pursuant to this Agreement, or in
connection with the decision of such Lender to enter into this Agreement, to any
such Subsidiary or Affiliate of such Lender, it being understood that any such
Subsidiary or affiliate of any Lender receiving such information shall be bound
by the provisions of Section 11.12.1 [General] as if it were a Lender hereunder.
Such Authorization shall survive the repayment of the Term Loan and other
Obligations and the termination of the Commitments. 

11.13. Counterparts. 

This Agreement may be
executed by different parties hereto on any number of separate counterparts,
each of which, when so executed and delivered, shall be an original, and all
such counterparts shall together constitute one and the same instrument.

11.14. [Reserved]. 

11.15. Exceptions. 

The representations,
warranties and covenants contained herein shall be independent of each other,
and no exception to any representation, warranty or covenant shall be deemed to
be an exception to any other representation, warranty or covenant contained
herein unless expressly provided, nor shall any such exceptions be deemed to
permit any action or omission that would be in contravention of applicable Law.

11.16. WAIVER OF JURY TRIAL. 

EACH LOAN PARTY, THE
AGENT AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND
ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY
COLLATERAL, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE AGENT OR THE
LENDERS RELATING TO THE ADMINISTRATION OF THE TERM LOAN OR ENFORCEMENT OF THIS
AGREEMENT OR THE LOAN DOCUMENTS, TO THE FULLEST EXTENT PERMITTED BY LAW. NO LOAN
PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EACH LOAN PARTY CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF AGENT OR THE LENDERS, HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT AGENT OR THE LENDERS WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A
MATERIAL INDUCEMENT FOR AGENT AND THE LENDERS TO ACCEPT THIS AGREEMENT AND THE
LOAN DOCUMENTS AND MAKE THE TERM LOAN. 

78 

11.17. JURISDICTION & VENUE. 

EACH LOAN PARTY HEREBY
IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF COURTS IN THE COUNTY OF
NEW YORK IN THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY
CERTIFIED OR REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO SUCH LOAN
PARTY AT THE ADDRESSES PROVIDED FOR IN SECTION 11.6 [NOTICES; LENDING OFFICES]
AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF.
NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF AGENT TO SERVE LEGAL PROCESS
BY ANY OTHER MANNER PERMITTED BY LAW. EACH LOAN PARTY IRREVOCABLY WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED AGAINST IT AS
PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON FORUM NON
CONVENIENS OR ANY LACK OF JURISDICTION OR VENUE THAT IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT.

11.18. USA Patriot Act Notice. 

Each Lender that is subject
to the USA Patriot Act and the Agent (for itself and not on behalf of any
Lender) hereby notifies Loan Parties that pursuant to the requirements of the
USA Patriot Act, it is required to obtain, verify and record information that
identifies the Loan Parties, which information includes the name and address of
Loan Parties and other information that will allow such Lender or Agent, as
applicable, to identify the Loan Parties in accordance with the USA Patriot Act.

11.19. Joinder of Guarantors. 

Any Subsidiary of the
Borrower which is required to join this Agreement as a Guarantor pursuant to
Section 8.2.5 [Liquidations, Mergers, Consolidations, Acquisitions] and Section
8.2.8 [Subsidiaries, Partnerships and Joint Ventures] shall (i) execute and
deliver to the Agent a Guarantor Joinder in substantially the form attached
hereto as Exhibit
1.1(G)(1) pursuant to which it
shall join as a Guarantor each of the documents to which the Guarantors are
parties; and (ii) execute and deliver to the Agent documents in the forms
described in Section 7.1.2 [Secretary’s Certificate] modified as appropriate to
relate to such Subsidiary and (iii) satisfy such other requirements as
reasonably requested by the Agent. The Loan Parties shall deliver such Guarantor
Joinder and related documents to the Agent within fifteen (15) Business Days
after the date of the filing of such Subsidiary’s articles of incorporation if
the Subsidiary is a corporation, the date of the filing of its certificate of
limited partnership if it is a limited partnership or the date of its
organization if it is an entity other than a limited partnership or corporation,
or other applicable date of first existing as a Subsidiary. Notwithstanding
Sections 8.2.5 and 8.2.8 or any other term of this Agreement, no Subsidiary
shall be required to be a Guarantor hereunder if both (a) such Subsidiary is not
a Significant Subsidiary and (b) such Subsidiary has not guaranteed any
Indebtedness of the Loan Parties in a principal amount of $50,000,000, provided
that in all events each Subsidiary that guarantees the NJR Revolving Credit
Agreement shall guarantee the Obligations under the Loan Documents. 

79 

11.20. Keepwell. 

Each Qualified ECP
Guarantor hereby jointly and severally absolutely, unconditionally and
irrevocably undertakes to provide such funds or other support as may be needed
from time to time by each other Loan Party to honor all of its obligations under
the Guaranty Agreement in respect of all Specified Swap Obligations (provided,
however, that each Qualified ECP Guarantor shall only be liable under this
Section 11.20 for the maximum amount of such liability that can be hereby
incurred without rendering its obligations under this Section 11.20, or
otherwise under the Guaranty Agreement, voidable under applicable law relating
to fraudulent conveyance or fraudulent transfer, and not for any greater
amount). The obligations of each Qualified ECP Guarantor under this Section
11.20 shall remain in full force and effect until a payment in full of the
guaranteed Obligations. Each Qualified ECP Guarantor intends that this Section
11.20 constitute, and this Section 11.20 shall be deemed to constitute, a
“keepwell, support, or other agreement” for the benefit of each other Loan Party
for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange
Act.

Notwithstanding anything
herein to the contrary, if a Guarantor or a Swap Counterparty makes a written
representation to the Lenders in connection with a Guaranty, a swap, or any
master agreement governing a swap to the effect that Guarantor is or will be an
“eligible contract participant” as defined in the Commodity Exchange Act on the
date the Guaranty becomes effective with respect to such swap (this date shall
be the date of the execution of the swap if the corresponding Guaranty is then
in effect, and otherwise it shall be the date of execution and delivery of such
Guaranty unless the Guaranty specifies a subsequent effective date), and such
representation proves to have been incorrect when made or deemed to have been
made, the Lenders reserve all of their contractual and other rights and
remedies, at law or in equity, including (to the extent permitted by applicable
law) the right to claim, and pursue a separate cause of action, for damages as a
result of such misrepresentation, provided that such Guarantor’s liability for
such damages shall not exceed the amount of the Excluded Swap Obligations with
respect to such swap.

11.21. Anti-Money Laundering/International Trade Law
Compliance. 

The Borrower represents and
warrants to the Agent and Lenders, as of the date of this Agreement, as of the
date of each advance of proceeds of Loans hereunder or issuance of any Letter of
Credit hereunder, as of the date of any renewal, extension or modification of
this Agreement, that: (A) neither the Borrower nor any Subsidiary thereof (i) is
listed or otherwise recognized as a specially designated, prohibited, sanctioned
or debarred person or entity, or subject to any limitations or prohibitions
(including but not limited to the blocking of property or rejections of
transactions) under any order or directive of any Compliance Authority; (ii) has
any of its assets in a Sanctioned Country in violation of any law or regulation
enforced by any Compliance Authority or in the possession, custody or control of
a Sanctioned Person; or (iii) does business in or with, or derives any of its
operating income from investments in or transactions with, any Sanctioned Person
or Sanctioned Country in violation of any law or regulation enforced by any
Compliance Authority; (B) the proceeds of the revolving credit facility will not
be used to fund any operations in, finance any investments or activities in, or
make any payments to, a Sanctioned Person or, in violation of any law or
regulation enforced by any Compliance Authority, a Sanctioned Country; and (C)
the Borrower and each Subsidiary of the Borrower is in compliance with, and
neither the Borrower nor any of its Subsidiaries engages in any dealings or
transactions prohibited by, any laws of the United States including the USA
Patriot Act, the Trading with the Enemy Act, or the U.S. Foreign Corrupt
Practices Act of 1977, all as amended, supplemented or replaced from time to
time. As used herein: “Compliance
Authority” means each and all of
the (a) U.S. Department of the Treasury’s Office of Foreign Assets Control; (b)
U.S. Treasury Department/Financial Crimes Enforcement Network; (c) U.S. State
Department/Directorate of Defense Trade Controls; (d) U.S. Commerce
Department/Bureau of Industry and Security; (e) U.S. Internal Revenue Service;
(f) U.S. Justice Department; and (g) U.S. Securities and Exchange Commission;
“Sanctioned
Country” means a country,
territory or region subject to a sanctions program maintained by any Compliance
Authority; and “Sanctioned Person” means any individual person, a group, regime,
entity or thing subject to, or specially designated under, any sanctions program
maintained by any Compliance Authority. 

80 

11.22. No Fiduciary Duty. 

In connection with all
aspects of each transaction contemplated hereby (including in connection with
any amendment, waiver or other modification hereof or of any other Loan
Document), the Borrower acknowledges and agrees that: (i) (A) the arranging and
other services regarding this Agreement provided by the Lenders are arm’s-length
commercial transactions between the Borrower and its Subsidiaries, on the one
hand, and the Lenders and their Affiliates, on the other hand, (B) the Borrower
has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate, and (C) the Borrower is capable of evaluating,
and understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents; (ii) (A) each of the
Lenders and their Affiliates is and has been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is
not, and will not be acting as an advisor, agent or fiduciary for the Borrower
or any of its Subsidiaries, or any other Person and (B) no Lender or any of its
Affiliates has any obligation to the Borrower or any of its Subsidiaries with
respect to the transactions contemplated hereby except, in the case of a Lender,
those obligations expressly set forth herein and in the other Loan Documents;
and (iii) each of the Lenders and their respective Affiliates may be engaged in
a broad range of transactions that involve interests that differ from those of
the Borrower and its Subsidiaries, and no Lender or any of its Affiliates has
any obligation to disclose any of such interests to the Borrower or its
Subsidiaries. To the fullest extent permitted by law, the Borrower hereby waives
and releases any claims that it may have against each of the Lenders and their
Affiliates with respect to any breach or alleged breach of agency or fiduciary
duty in connection with any aspect of any transaction contemplated hereby.

11.23. Electronic Images of Loan
Documents. 

The Agent is expressly
permitted to create electronic images and to destroy paper originals of any
imaged documents. Any such images maintained by Agent as a part of its normal
business processes shall be given the same legal effect as the paper originals,
and all such images may be converted to a “transferable record” under the
Uniform Electronic Transactions Act (the “UETA”), with the image of
such instrument in Agent’s possession constituting an “authoritative copy” under
the UETA. 

[SIGNATURE PAGES FOLLOW]

81 

IN WITNESS WHEREOF, and
intending to be legally bound hereby, the parties hereto have executed this
Agreement as of the date first above written. 

BORROWER: 

	ATTEST:		NEW JERSEY RESOURCES
    CORPORATION
	 
	/s/ Richard
Reich	     	By:  	/s/ James W.
Kent	[Seal]
	Richard Reich			James W. Kent	
	Secretary			Treasurer	

		GUARANTORS:
		 
		NJR RETAIL HOLDINGS
CORPORATION
		 
	 	By:     	/s/ Patrick M. Migliaccio
			Patrick M. Migliaccio
			Senior Vice President, Chief Financial Officer
      and
			Treasurer
		 
		NJR HOME SERVICES COMPANY
		 
		By:	/s/ Patrick M. Migliaccio
			Patrick M. Migliaccio
			Senior Vice President, Chief Financial Officer
      and
			Treasurer
		 
		COMMERCIAL REALTY AND
RESOURCES
		CORP.
		 
		By:	/s/ Patrick M. Migliaccio
			Patrick M. Migliaccio
			President, Chief Financial Officer and
      Treasurer
		 
		NJR PLUMBING SERVICES, INC.
		 
		By:	/s/ Patrick M. Migliaccio
			Patrick M. Migliaccio
			Senior Vice President, Chief Financial Officer
      and
			Treasurer
		 
		NJR RETAIL SERVICES COMPANY
		 
		By:	/s/ Patrick M. Migliaccio
			Patrick M. Migliaccio
			Senior Vice President, Chief Financial Officer
      and
			Treasurer

[SIGNATURE PAGE TO NEW
JERSEY RESOURCES CORPORATION
CREDIT AGREEMENT]

	 	GUARANTORS, CONTINUED:
		 
		NJR SERVICE CORPORATION
		 
		By:     	/s/ James W. Kent
			James W. Kent
			Treasurer
		 
		NJR ENERGY SERVICES COMPANY
		 
		By:	/s/ James W. Kent
			James W. Kent
			Treasurer
		 
		NJR STORAGE HOLDINGS COMPANY
		 
		By:	/s/ James W. Kent
			James W. Kent
			Treasurer
		 
		NJR MIDSTREAM HOLDINGS
  CORPORATION
		 
		By:	/s/ James W. Kent
			James W. Kent
			Treasurer
		 
		NJR ENERGY INVESTMENTS
  CORPORATION
		 
		By:	/s/ James W. Kent
			James W. Kent
			Treasurer
		 
		NJR CLEAN ENERGY VENTURES
		CORPORATION
		 
		By:	/s/ James W. Kent
			James W. Kent
			Treasurer

[SIGNATURE PAGE TO NEW
JERSEY RESOURCES CORPORATION
CREDIT AGREEMENT]

	 	GUARANTORS,
      CONTINUED:
			 
		NJR CLEAN ENERGY
      VENTURES II
		CORPORATION
			 
		By:     	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		NJR CLEAN ENERGY
      VENTURES III
		CORPORATION
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		TWO DOT WIND FARM,
      LLC
		By: NJR Clean Energy
      Ventures II Corporation, its
		sole
    member
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		CARROLL AREA WIND
      FARM, LLC
		By: NJR Clean Energy
      Ventures II Corporation, its
		sole
    member
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		ALEXANDER WIND FARM,
      LLC
		By: NJR Clean Energy
      Ventures II Corporation, its
		sole
    member
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer

[SIGNATURE PAGE TO NEW
JERSEY RESOURCES CORPORATION
CREDIT AGREEMENT]

	 	GUARANTORS,
    CONTINUED:
		 
		RINGER HILL WIND
  LLC
		By: NJR Clean Energy Ventures II
      Corporation, its
		sole member
			 
		By:     	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		MEDICINE BOW WIND,
    LLC
		By: NJR Clean Energy Ventures II
      Corporation, its
		sole member
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer
			 
		BERNARDS SOLAR,
  LLC
		By: NJR Clean Energy Ventures II
      Corporation, its
		sole member
			 
		By: 	/s/ James W. Kent
			James W. Kent
			Treasurer

[SIGNATURE PAGE TO NEW
JERSEY RESOURCES CORPORATION
CREDIT AGREEMENT]

		U.S. BANK NATIONAL ASSOCIATION,
		individually as a Lender and as
  Agent
	 	 
		By:     	/s/ Kevin Murphy
			Kevin Murphy
			Assistant Vice
President

SCHEDULE
1.1(B)

COMMITMENTS OF LENDERS AND
ADDRESSES FOR NOTICES Part 1 

- Commitments/Addresses of
Lenders 

		AMOUNT
      OF	
		COMMITMENT	
	LENDER	FOR TERM
      LOAN	PERCENTAGE
	U.S. BANK
      NATIONAL ASSOCIATION	$100,000,000.00	100.000000000%
	 		
	Address for
      Notices:		
	U.S. Bank
      Tower		
	425 Walnut
      Street, 8th Floor		
	ML
    CN-W-8		
	Cincinnati, OH
      45202		
	Attention: Eric
      J. Cosgrove, Portfolio Manager	 	
	Telephone No.
      (513) 632-3033		
	Telecopier No.
      (513) 632-2068		
	E-mail: Eric.Cosgrove@USBank.com		
	 		
	Address of
      Lending Office		
	425 Walnut
      Street, 8th Floor		
	ML
    CN-OH-W8		
	Cincinnati, OH
      45202		
	Attention: Eric
      J. Cosgrove, Portfolio Manager		
	Telephone No.
      (513) 632-3033		
	Telecopier No.
      (513) 632-2068		
	E-mail: Eric.Cosgrove@USBank.com		
	Total	$100,000,000.00	100.000000000%

SCHEDULE 1.1(B) 

COMMITMENTS OF LENDERS AND
ADDRESSES FOR NOTICES 

Part 2 - Addresses for
Notices to Agent, Borrower:

	AGENT:	     	
	 
	Name:		U.S. BANK
      NATIONAL ASSOCIATION
	Address:		425
      Walnut Street, 8th Floor
			ML
    CN-W-8
			Cincinnati, OH
      45202
	Attention:		Eric J.
      Cosgrove, Portfolio Manager
	Telephone
      No.		(513)
      632-3033
	Telecopier
      No.		(513)
      632-2068
	E-mail:		Eric.Cosgrove@USBank.com
	 
	Name:		BRYAN CAVE
      LLP
	Address:		1290 Avenue
      of the Americas
			New York,
      New York 10104
	Attention:		Jeffrey
      Chavkin
	Telephone
      No.		(212) 541-1261
	Telecopier
      No.		(212)
      904-0501
	E-mail:		jschavkin@bryancave.com
	 
	BORROWER:		
	 
	Name:		NEW JERSEY
      NATURAL GAS COMPANY
	Address:		1415 Wyckoff
      Road
			Wall, NJ
      07719
	Attention:		James Kent,
      Treasurer
	Telephone
      No.		(732)
      938-1093
	Telecopier
      No.		(732)
      938-3154
	E-mail:		jkent@njresources.com
	 
	Name:		NEW JERSEY
      NATURAL GAS COMPANY
	Address:		1415 Wyckoff
      Road
			Wall, NJ
      07719
	Attention:		Nancy
      Washington, General Counsel
	Telephone
      No.		(732)
      938-8039
	Telecopier
      No.		(732)
      938-1226
	E-mail:		nwashington@njresources.com

SCHEDULE 1.1(P)

Permitted
Liens

None

SCHEDULE
6.1.2

SUBSIDIARIES

		 	Jurisdiction of	 	
			Incorporation/		Shareholder/Partner/
	Subsidiary	   	Formation	   	LLC Interest Owner
	New Jersey
      Natural Gas Company		New
      Jersey		New Jersey
      Resources Corporation
	NJR Energy
      Services Company		New
      Jersey		New Jersey
      Resources Corporation
	NJR Retail
      Holdings Corporation		New
      Jersey		New Jersey
      Resources Corporation
	NJR Home
      Services Company		New
      Jersey		NJR Retail
      Holdings Corporation
	NJR Plumbing
      Services, Inc.		New
      Jersey		NJR Home
      Services Company
	NJR Retail
      Services Company		New
      Jersey		NJR Retail
      Holdings Corporation
	NJR Energy
      Investments Corporation		New
      Jersey		New Jersey
      Resources Corporation
	NJR Storage
      Holdings Company		Delaware		NJR
      Midstream Holdings Corporation
	NJR Steckman
      Ridge Storage Company		Delaware		NJR Storage
      Holdings Company
	Commercial
      Realty and Resources Corp.		New
      Jersey		NJR Retail
      Holdings Corporation
	NJR
      Midstream Holdings Corporation		New
      Jersey		NJR Energy
      Investments Corporation
	NJR Clean
      Energy Ventures Corporation		New
      Jersey		New Jersey
      Resources Corporation
	NJR Clean
      Energy Ventures II Corporation		New
      Jersey		NJR Clean
      Energy Ventures Corporation
	Two Dot Wind
      Farm, LLC		Delaware		NJR Clean
      Energy Ventures II Corporation
	Carroll Area
      Wind Farm, LLC		Iowa		NJR Clean
      Energy Ventures II Corporation
	Alexander
      Wind Farm, LLC		Delaware		NJR Clean
      Energy Ventures II Corporation
	Ringer Hill
      Wind, LLC		Delaware		NJR Clean
      Energy Ventures II Corporation
	Medicine Bow
      Wind, LLC		Delaware		NJR Clean
      Energy Ventures II Corporation
	Bernards
      Solar, LLC	   	New
      Jersey	   	NJR Clean
      Energy Ventures II Corporation
	NJR Clean
      Energy Ventures III Corporation		New
      Jersey		NJR Clean
      Energy Ventures II Corporation
	NJR Pipeline
      Company		New
      Jersey		NJR
      Midstream Holdings Corporation
	NJNR
      Pipeline Company		New
      Jersey		NJR
      Midstream Holdings Corporation
	Adelphia
      Gateway, LLC		Delaware		NJR Pipeline
      Company

There are no options,
warrants or other rights outstanding to purchase any Subsidiary Shares,
Partnership Interests or LLC Interests. 

SCHEDULE 6.1.12

Consents and
Approvals

None

SCHEDULE
8.2.1

Existing
Indebtedness

I. The following is a list
of all outstanding Indebtedness of New Jersey Resources Corporation
(“NJR”) and its Unregulated Subsidiaries as of June 30,
2017 (unless otherwise indicated). 

A. NJR 

1. Senior Notes 

						Maturity		
	      		     	Rate	     	Date	     	Principal
      Amt.
		Unsecured
      Senior Notes		6.05%		9/24/17		$     	50,000,000
		Unsecured
      Senior Notes		2.51%		9/17/18			25,000,000
		Unsecured
      Senior Notes		3.25%		9/17/22			50,000,000
		Unsecured
      Senior Notes		3.48%		11/7/24			100,000,000
		Unsecured
      Senior Notes		3.20%		8/18/23			50,000,000
		Unsecured
      Senior Notes		3.54%		8/18/26			100,000,000
		 
		Total						$	375,000,000

The following Subsidiaries
are guarantors of the Senior Notes: Commercial Realty and Resources Corporation,
NJR Clean Energy Ventures Corporation, NJR Clean Energy Ventures II Corporation,
Two Dot Wind Farm, LLC, Carroll Area Wind Farm, LLC, Alexander Wind Farm, LLC,
Ringer Hill Wind, LLC, NJR Energy Investments Corporation, NJR Energy Services
Company, NJR Home Services Company, NJR Plumbing Services, Inc., NJR Retail
Holdings Corporation, NJR Service Corporation, NJR Retail Services Company, NJR
Storage Holdings Company, NJR Midstream Holdings Corporation, Medicine Bow Wind
Farm, LLC, Bernards Solar, LLC, and NJR Clean Energy Ventures III Corporation.

2. NJR Revolving Credit Agreement: As of June 30, 2017, NJR had $278.3 million of
total indebtedness under the NJR Revolving Credit Agreement and the “Loan
Documents” as defined in the NJR Revolving Credit Agreement. The following
Subsidiaries are guarantors of the NJR Revolving Credit Agreement: Commercial
Realty and Resources Corporation, NJR Clean Energy Ventures Corporation, NJR
Clean Energy Ventures II Corporation, NJR Clean Energy Ventures III Corporation,
Two Dot Wind Farm, LLC, Carroll Area Wind Farm, LLC, Alexander Wind Farm, LLC,
Ringer Hill Wind, LLC, Medicine Bow Wind, LLC, Bernards Solar, LLC, NJR Energy
Investments Corporation, NJR Energy Services Company, NJR Home Services Company,
NJR Plumbing Services, Inc., NJR Retail Holdings Corporation, NJR Service
Corporation, NJR Storage Holdings Company, NJR Midstream Holdings Corporation
and NJR Retail Services Company. 

3. Letters of Credit: The following letters of credit have been issued
pursuant to the NJR Revolving Credit Agreement:

							Principal
		     	Purpose	     	Expiry Date	     	Amt.
	NJR		Margin requirements		12/31/2017		$     	10,180,000
	NJR on behalf of NJRCEV2		Secure
      construction of solar project		8/21/2017		$	160,337
	NJR on behalf of NJRCEV		Secure payment obligations to PJM
      Interconnection, LLC		5/19/2017		$	1,329,000
	NJR on behalf of NJRCEV		Electricity
      for consumption		8/10/2017		$	1,818,944
	NJR on behalf of NJRCEV		Serve electric needs		8/5/2017		$	1,491,930

B. DERIVATIVE INSTRUMENTS

NJR is subject to commodity
price risk due to fluctuations in the market price of natural gas, Solar
Renewable Energy Credits (SRECs) and electricity. To manage this risk, NJR
enters into a variety of derivative instruments including, but not limited to,
futures contracts, physical forward contracts, financial options and swaps to
economically hedge the commodity price risk associated with its existing and
anticipated commitments to purchase and sell natural gas, SRECs and electricity.
In addition, NJR may utilize foreign currency derivatives as cash flow hedges of
Canadian dollar denominated gas purchases and/or sales. These contracts, with a
few exceptions as described below, are accounted for as derivatives.
Accordingly, all of the financial and certain of NJR’s physical derivative
instruments are recorded at fair value on NJR’s Unaudited Condensed Consolidated
Balance Sheets. 

NJRES also enters into
natural gas transactions in Canada and, consequently, is exposed to fluctuations
in the value of Canadian currency relative to the US dollar. NJRES may utilize
foreign currency derivatives to lock in the currency translation rate associated
with natural gas transactions denominated in Canadian currency. The derivatives
may include currency forwards, futures, or swaps and are accounted for as
derivatives. These derivatives may be used to hedge future forecasted cash
payments associated with transportation and storage contracts along with
purchases of natural gas.

As a result of NJRES
entering into transactions to borrow gas, commonly referred to as “park and
loans,” an embedded derivative is created related to differences between the
fair value of the amount borrowed and the fair value of the amount that will
ultimately be repaid, based on changes in the forward price for natural gas
prices at the borrowed location over the contract term. This embedded derivative
is accounted for as a forward sale in the month in which the repayment of the
borrowed gas is expected to occur, and is considered a derivative transaction
that is recorded at fair value on NJR’s Unaudited Condensed Consolidated Balance
Sheets, with changes in value recognized in current period earnings. 

Expected production of
SRECs is hedged through the use of forward and futures contracts. All contracts
require the Company to physically deliver SRECs through the transfer of
certificates as per contractual settlement schedules.

The following table
reflects the fair value of NJR’s derivative assets and liabilities recognized in
its Unaudited Condensed Consolidated Balance Sheets that are designated as
hedging instruments as of June 30, 2017: 

					Fair Value
					June 30, 2017		September 30,
    2016
					Asset		Liability		Asset		Liability
	(Thousands)	     	Balance Sheet
    Location	     	Derivatives	     	Derivatives	     	Derivatives	     	Derivatives
	Derivatives not designated as
      hedging instruments:												
	NJNG:														
	Physical
      commodity contracts		Derivatives
      - current		$	92		$	15		$	235		$	1,154
	Financial
      commodity contracts		Derivatives
      - current			21			925			805			2,979
			Derivatives
      - noncurrent			—			—			75			386
	Interest
      rate contracts		Derivatives
      - current			—			8,594			—			—
	Interest rate contracts		Derivatives - noncurrent			—			—			—			23,073
	NJRES:														
	Physical
      commodity contracts		Derivatives
      - current			5,205			3,851			5,994			11,660
			Derivatives
      - noncurrent			4,917			1,443			3,987			1,212
	Financial
      commodity contracts		Derivatives
      - current			19,384			14,217			22,929			45,255
			Derivatives
      - noncurrent			998			1,150			1,165			581
	Foreign currency contracts		Derivatives - current			16			—			1			32
	Fair value of derivatives not designated
      as hedging		$	30,633		$	30,195		$	35,191		$	86,332
	Total fair value of derivatives				$	30,633		$	30,195		$	35,191		$	86,332

EXHIBIT
1.1(A)

FORM
OF
ASSIGNMENT AND
ASSUMPTION

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

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

	       	1.	      	Assignor:	       	____________________
		 
		2.		Assignee:		____________________
						[and is an Affiliate of [identify Lender3
      ]

3 Select if
applicable. 

	       	3.	     	Borrower(s):	       	New Jersey
      Resources Corporation
		 
		4.		Agent:		U.S. Bank
      National Association, as the agent under the Credit Agreement
		 
		5.		Credit
Agreement:		Credit
      Agreement dated as of August 18, 2017 among New Jersey Resources
      Corporation, the Guarantors parties thereto, the Lenders parties thereto,
      and U.S. Bank National Association, as administrative agent for the
      Lenders
		 
		6.		Assigned
      Interest:		

			Aggregate Amount					
			of		Amount of		Percentage
			Term Loan for all		Term
      Loan		Assigned
	Facility
      Assigned4	     	Lenders*	     	Assigned*	     	of Term
  Loan5
			$     	 		$     	 		%
			$			$			%
			$			$			%

	       	7.	     	Trade Date: ____________________
  6

Effective Date: __________
___, 20___ [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]7

4 Fill in the
appropriate terminology for the types of facilities under the Credit Agreement
that are being assigned under this Agreement (e.g. “Term Loan”, etc.).

* Amount to be adjusted by
the counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date. 

5 Set forth, to
at least 9 decimals, as a percentage of the Commitment of all Lenders
thereunder. 

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

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

[SIGNATURE PAGE FOLLOWS] 

2 

[SIGNATURE PAGE FOR
ASSIGNMENT AND ASSUMPTION] 

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

		ASSIGNOR
		 
		[NAME OF
      ASSIGNOR]
		 
		By:
      _________________________
		Name:
		Title:
		 
		ASSIGNEE
		 
		[NAME OF
      ASSIGNEE]
		 
		By:
      _________________________
		Name:
		Title:

Consented to and Accepted:

	U.S. BANK NATIONAL ASSOCIATION,
	as
      Agent
	 
	By:
      _________________________
	Name:
	Title:
	 
	Consented
      to:
	 
	NEW JERSEY RESOURCES CORPORATION,
	as
      Borrower
	 
	By:
      _________________________
	Name:
	Title:

3 

ANNEX 1

STANDARD TERMS AND
CONDITIONS
FOR ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties. 

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

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby
and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Assignee under the Credit Agreement (subject to receipt of
such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (iv) it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 8.3 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other
Lender, and (v) if Assignee is not incorporated under the Laws of the United
States of America or a state thereof, attached to the Assignment and Assumption
is any documentation required to be delivered by it pursuant to the terms of the
Credit Agreement, duly completed and executed by the Assignee; and (b) agrees
that it will, independently and without reliance on the Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents
are required to be performed by it as a Lender. 

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

3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

4 

EXHIBIT
1.1(G)(1)

FORM OF

GUARANTOR JOINDER AND
ASSUMPTION AGREEMENT

THIS GUARANTOR JOINDER AND
ASSUMPTION AGREEMENT is made as of ________ ___, 20___, by _______________, a
_______________ [corporation/partnership/limited liability company] (the
“New Guarantor”).

Background 

Reference is made to (i)
the Credit Agreement, dated as of August 18, 2017, as the same may be restated,
modified, supplemented or amended from time to time (the “Credit Agreement”), by and among New Jersey Resources Corporation,
a New Jersey corporation (the “Borrower”), each of the
Guarantors now or hereafter party thereto (each a “Guarantor” and collectively the “Guarantors”), the Lenders now or hereafter party thereto (the “Lenders”), and U.S. Bank National Association, in its capacity as administrative
agent for the Lenders (in such capacity, the “Agent”); (ii) the Guaranty and Suretyship Agreement, dated as of August 18,
2017 (as the same may be restated, modified, supplemented or amended from time
to time, the “Guaranty”), of Guarantors
given to Agent, and (iii) the other Loan Documents referred to in the Credit
Agreement, as the same may be modified, supplemented, restated or amended from
time to time (the “Loan Documents”). 

Agreement 

Capitalized terms defined
in the Credit Agreement are used herein as defined therein. 

New Guarantor hereby
becomes a Guarantor under the terms of the Credit Agreement and in consideration
of the value of the direct and indirect economic benefits received by New
Guarantor as a result of being or becoming affiliated with the Borrower and the
Guarantors, New Guarantor hereby agrees that, effective as of the date hereof,
it hereby is, and shall be deemed to be, and assumes the obligations of, a “Loan
Party” and a “Guarantor” under the Credit Agreement, a “Guarantor”, jointly and
severally with the existing Guarantors under the Guaranty, and a Loan Party or
Guarantor, as the case may be, under each of the other Loan Documents to which
the Loan Parties or Guarantors are a party; and New Guarantor hereby agrees that
from the date hereof and so long as any Loan or any Commitment of any Lender
shall remain outstanding and until the payment in full of the Loans and the
Notes, and the performance of all other obligations of Borrower under the Loan
Documents, New Guarantor shall perform, comply with and be subject to and bound
by each of the terms and provisions of the Credit Agreement, Guaranty and each
of the other Loan Documents, jointly and severally, with the existing parties
thereto. Without limiting the generality of the foregoing, New Guarantor hereby
represents and warrants that (i) each of the representations and warranties set
forth in Section 6 of the Credit Agreement applicable to a Loan Party is true
and correct as to New Guarantor on and as of the date hereof; and (ii) New
Guarantor has heretofore received a true and correct copy of the Credit
Agreement, Guaranty and each of the other Loan Documents (including any
modifications thereof or supplements or waivers thereto) in effect on the date
hereof. 

New Guarantor hereby makes,
affirms and ratifies in favor of the Lenders and the Agent the Credit Agreement,
Guaranty and each of the other Loan Documents given by the Guarantors to Agent
and any of the Lenders. 

New Guarantor is
simultaneously delivering to the Agent the documents, together with Guarantor
Joinder, required under Sections 8.2.8 [Subsidiaries as Guarantors]. 

In furtherance of the
foregoing, New Guarantor shall execute and deliver or cause to be executed and
delivered at any time and from time to time such further instruments and
documents and do or cause to be done such further acts as may be reasonably
necessary in the reasonable opinion of Agent to carry out more effectively the
provisions and purposes of this Guarantor Joinder and Assumption Agreement and
the other Loan Documents. 

This Guarantor Joinder and
Assumption Agreement may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which, when so
executed, shall be deemed an original, but all such counterparts shall
constitute one and the same instrument. New Guarantor acknowledges and agrees
that a telecopy transmission to Agent or any Lender of signature pages hereof
purporting to be signed on behalf of New Guarantor shall constitute effective
and binding execution and delivery hereof by New Guarantor. 

NEW GUARANTOR SHALL
CAUSE BORROWER TO PROVIDE SUCH ADDITIONAL DOCUMENTS AS REQUIRED BY SECTION 8.2.8
OF THE CREDIT AGREEMENT.

[SIGNATURE PAGE FOLLOWS]

2 

IN WITNESS WHEREOF, and
intending to be legally bound hereby, New Guarantor has duly executed this
Guarantor Joinder and Assumption Agreement and delivered the same to the Agent
for the benefit of the Lenders, as of the date and year first above written.

	[______________________________]
	 
	By:                                                                                                  
	Name:
	Title:

Acknowledged and accepted:

U.S. BANK NATIONAL
ASSOCIATION,
as Agent 

	By: 	 
	Name:
	Title:

3 

EXHIBIT
1.1(G)(2)

GUARANTY AND SURETYSHIP
AGREEMENT

This Guaranty and
Suretyship Agreement (the “Guaranty”), dated as of
this 18th day of August, 2017, is jointly and severally given by EACH OF THE UNDERSIGNED AND EACH OF THE OTHER
PERSONS WHICH BECOME GUARANTORS HEREUNDER FROM TIME TO TIME (each a “Guarantor” and
collectively the “Guarantors”) in favor of
U.S. BANK NATIONAL ASSOCIATION,
as administrative agent for the
Lenders (the “Agent”) in connection with
that Credit Agreement dated of even date herewith among New Jersey Resources
Corporation, the Guarantors parties thereto, the Lenders parties thereto (the
“Lenders”), and U.S. Bank National Association, as
administrative agent for the Lenders, and the Lenders now or hereafter party
thereto (as amended, restated, modified or supplemented from time to time
hereafter, the “Credit
Agreement”). Capitalized terms
not otherwise defined herein shall have the respective meanings ascribed to them
by the Credit Agreement and the rules of construction set forth in Section 1.2
[Construction] of the Credit Agreement shall apply to this Guaranty. 

1. GUARANTIED OBLIGATIONS. TO INDUCE THE AGENT AND
THE LENDERS TO MAKE LOANS AND GRANT
OTHER FINANCIAL ACCOMMODATIONS TO THE BORROWER UNDER THE CREDIT AGREEMENT, EACH GUARANTOR HEREBY JOINTLY AND SEVERALLY, UNCONDITIONALLY AND
IRREVOCABLY GUARANTIES  TO THE AGENT
AND EACH LENDER AND ANY PROVIDER OF A LENDER PROVIDED  INTEREST RATE HEDGE OR ANY PROVIDER OF OTHER
LENDER PROVIDED FINANCIAL SERVICE PRODUCTS; AND BECOMES SURETY, AS
THOUGH IT WAS A PRIMARY OBLIGOR, FOR
THE FULL AND PUNCTUAL PAYMENT AND  PERFORMANCE WHEN DUE (WHETHER ON DEMAND, AT STATED MATURITY,
BY ACCELERATION OR OTHERWISE AND INCLUDING ANY
AMOUNTS WHICH WOULD BECOME DUE BUT FOR THE OPERATION OF AN AUTOMATIC
STAY UNDER THE FEDERAL BANKRUPTCY CODE OF THE UNITED STATES OR
ANY SIMILAR LAWS OF ANY COUNTRY OR JURISDICTION) OF ALL OBLIGATIONS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ALL
OBLIGATIONS, LIABILITIES AND INDEBTEDNESS FROM TIME TO TIME OF THE BORROWER
OR ANY OTHER GUARANTOR TO THE AGENT OR ANY OF THE LENDERS OR
ANY AFFILIATE OF ANY LENDER UNDER OR IN CONNECTION WITH THE CREDIT
AGREEMENT OR ANY OTHER LOAN DOCUMENT,
WHETHER FOR PRINCIPAL, INTEREST, FEES, INDEMNITIES, EXPENSES OR OTHERWISE, AND ALL RENEWALS,
EXTENSIONS, AMENDMENTS, REFINANCINGS OR REFUNDINGS THEREOF,
WHETHER SUCH OBLIGATIONS, LIABILITIES OR INDEBTEDNESS ARE
DIRECT OR INDIRECT, SECURED OR UNSECURED, JOINT OR SEVERAL, ABSOLUTE
OR CONTINGENT, DUE OR TO BECOME DUE, WHETHER FOR PAYMENT OR
PERFORMANCE, NOW EXISTING OR HEREAFTER ARISING (AND INCLUDING
OBLIGATIONS, LIABILITIES AND INDEBTEDNESS ARISING OR ACCRUING
AFTER THE COMMENCEMENT OF ANY BANKRUPTCY, INSOLVENCY,
REORGANIZATION OR SIMILAR PROCEEDING WITH RESPECT TO THE BORROWER OR
ANY GUARANTOR OR WHICH WOULD HAVE ARISEN OR ACCRUED BUT FOR THE
COMMENCEMENT OF SUCH PROCEEDING, EVEN IF THE CLAIM FOR SUCH
OBLIGATION, LIABILITY OR INDEBTEDNESS IS NOT ENFORCEABLE OR ALLOWABLE IN
SUCH PROCEEDING, AND INCLUDING ALL OBLIGATIONS, LIABILITIES AND
INDEBTEDNESS ARISING FROM ANY EXTENSIONS OF CREDIT UNDER OR IN
CONNECTION WITH ANY LOAN DOCUMENT FROM TIME TO TIME, REGARDLESS OF
WHETHER ANY SUCH EXTENSIONS OF CREDIT ARE IN EXCESS OF THE AMOUNT
COMMITTED UNDER OR CONTEMPLATED BY THE LOAN DOCUMENTS OR ARE MADE IN
CIRCUMSTANCES IN WHICH ANY CONDITION TO EXTENSION OF CREDIT IS NOT
SATISFIED) (ALL OF THE FOREGOING OBLIGATIONS, LIABILITIES AND INDEBTEDNESS
ARE REFERRED TO HEREIN COLLECTIVELY AS THE “GUARANTIED OBLIGATIONS” AND EACH AS A “GUARANTIED
OBLIGATION”). WITHOUT LIMITATION OF
THE FOREGOING, ANY OF THE GUARANTIED OBLIGATIONS SHALL BE AND REMAIN GUARANTIED OBLIGATIONS ENTITLED
TO THE BENEFIT OF THIS GUARANTY IF THE AGENT OR ANY
OF THE LENDERS (OR ANY ONE OR MORE ASSIGNEES OR TRANSFEREES THEREOF)
FROM TIME TO TIME ASSIGN OR OTHERWISE TRANSFER ALL OR ANY PORTION OF
THEIR RESPECTIVE RIGHTS AND OBLIGATIONS UNDER THE LOAN DOCUMENTS OR
ANY OTHER GUARANTIED OBLIGATIONS TO ANY OTHER PERSON. IN
FURTHERANCE OF THE FOREGOING, EACH GUARANTOR JOINTLY AND SEVERALLY
AGREES AS FOLLOWS:

2. Guaranty. Each Guarantor hereby promises to pay and perform all such Guarantied
Obligations immediately upon demand of the Agent and the Required Lenders. All
payments made hereunder shall be made by each Guarantor in immediately available
funds in U.S. Dollars and shall be made without setoff, counterclaim,
withholding or other deduction of any nature. 

3. Obligations Absolute. The obligations of the Guarantors hereunder
shall not be discharged or impaired or otherwise diminished by any failure,
default, omission or delay, willful or otherwise, by any Lender, the Agent or
Borrower or any other obligor on any of the Guarantied Obligations or by any
other act or thing or omission or delay to do any other act or thing which may
or might in any manner or to any extent vary the risk of any Guarantor or would
otherwise operate as a discharge of any Guarantor as a matter of law or equity.
Each of the Guarantors agrees that the Guarantied Obligations will be paid and
performed strictly in accordance with the terms of the Loan Documents. Without
limiting the generality of the foregoing, each Guarantor hereby consents to at
any time and from time to time, and the joint and several obligations of each
Guarantor hereunder shall not be diminished, terminated or otherwise similarly
affected by, any of the following: 

a) Any lack of genuineness,
legality, validity, enforceability or allowability (in a bankruptcy, insolvency,
reorganization or similar proceeding or otherwise) or any avoidance or
subordination, in whole or in part, of any Loan Document or any of the
Guarantied Obligations and, regardless of any Law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of the Guarantied
Obligations, any of the terms of the Loan Documents or any rights of the Agent
or the Lenders or any other Person with respect thereto; 

b) Any increase, decrease
or change in the amount, nature, type or purpose of any of, or any release,
surrender, exchange, compromise or settlement of any of the Guarantied
Obligations (whether or not contemplated by the Loan Documents as presently
constituted); any change in the time, manner, method or place of payment or
performance of or in any other term of any of the Guarantied Obligations; any
execution or delivery of any additional Loan Documents; or any amendment,
modification or supplement to, or renewals, extensions, refinancing or refunding
of, any Loan Document or any of the Guarantied Obligations; 

c) Any failure to assert
any breach of or default under any Loan Document or any of the Guarantied
Obligations; any extensions of credit in excess of the amount committed under or
contemplated by the Loan Documents, or in circumstances in which any condition
to such extensions of credit has not been satisfied; any other exercise or
non-exercise, or any other failure, omission, breach, default, delay, or
wrongful action in connection with any exercise or non-exercise, of any right or
remedy against the Borrower or any other Person under or in connection with any
Loan Document or any of the Guarantied Obligations; any refusal of payment or
performance of any of the Guarantied Obligations, whether or not with any
reservation of rights against any Guarantor; or any application of collections
(including but not limited to collections resulting from realization upon any
direct or indirect security for the Guarantied Obligations) to other
obligations, if any, not entitled to the benefits of this Guaranty, in
preference to Guarantied Obligations
entitled to the benefits of this Guaranty, or if any collections are applied to
Guarantied Obligations, any application to particular Guarantied Obligations;

2 

d) Any taking, exchange,
amendment, modification, waiver, supplement, termination, subordination,
compromise, release, surrender, loss, or impairment of, or any failure to
protect, perfect, or preserve the value of, or any enforcement of, realization
upon, or exercise of rights, or remedies under or in connection with, or any
failure, omission, breach, default, delay, or wrongful action by the Agent or
the Lenders, or any of them, or any other Person in connection with the
enforcement of, realization upon, or exercise of rights or remedies under or in
connection with, or, any other action or inaction by any of the Agent or the
Lenders, or any of them, or any other Person in respect of, any direct or
indirect security for any of the Guarantied Obligations. As used in this
Guaranty, “direct or indirect security” for the Guarantied Obligations, and
similar phrases, includes any collateral security, guaranty, suretyship, letter
of credit, capital maintenance agreement, put option, subordination agreement,
or other right or arrangement of any nature providing direct or indirect
assurance of payment or performance of any of the Guarantied Obligations, made
by or on behalf of any Person; 

e) Any merger,
consolidation, liquidation, dissolution, winding-up, charter revocation, or
forfeiture, or other change in, restructuring or termination of the corporate
structure or existence of, the Borrower or any other Person; any bankruptcy,
insolvency, reorganization or similar proceeding with respect to the Borrower or
any other Person; or any action taken or election made by the Agent or the
Lenders, or any of them (including but not limited to any election under Section
1111(b)(2) of the United States Bankruptcy Code), the Borrower, or any other
Person in connection with any such proceeding; 

f) Any defense, setoff, or
counterclaim which may at any time be available to or be asserted by the
Borrower or any other person with respect to any Loan Document or any of the
Guarantied Obligations; or any discharge by operation of law or release of the
Borrower or any other Person from the performance or observance of any Loan
Document or any of the Guarantied Obligations; 

g) Any other event or
circumstance, whether similar or dissimilar to the foregoing, and whether known
or unknown, which might otherwise constitute a defense available to, or limit
the liability of, any Guarantor, a guarantor or a surety, excepting only full,
strict, and indefeasible payment and performance of the Guarantied Obligations
in full. 

Each Guarantor
acknowledges, consents, and agrees that new Guarantors may join in this Guaranty
pursuant to Section 11.19 [Joinder of Guarantors] of the Credit Agreement and
each Guarantor affirms that its obligations shall continue hereunder
undiminished. 

4. Waivers, etc. Each of the Guarantors hereby waives any defense
to or limitation on its obligations under this Guaranty arising out of or based
on any event or circumstance referred to in Section 3 hereof. Without limitation
and to the fullest extent permitted by applicable Law, each Guarantor waives
each of the following: 

(a) All notices,
disclosures and demand of any nature which otherwise might be required from time
to time to preserve intact any rights against any Guarantor, including the
following: any notice of any event or circumstance described in Section 3
hereof; any notice required by any law, regulation or order now or hereafter in
effect in any jurisdiction; any notice of nonpayment, nonperformance, dishonor,
or protest under any Loan Document or any of the Guarantied Obligations; any
notice of the incurrence of any Guarantied Obligation; any notice of any default
or any failure on the part of the Borrower or any other Person to comply with
any Loan Document or any of the Guarantied Obligations or any direct or indirect
security for any of the Guarantied Obligations; and any notice of any information pertaining to the
business, operations, condition (financial or otherwise) or prospects of the
Borrower or any other Person; 

3 

(b) Any right to any
marshalling of assets, to the filing of any claim against the Borrower or any
other Person in the event of any bankruptcy, insolvency, reorganization or
similar proceeding, or to the exercise against the Borrower or any other Person
of any other right or remedy under or in connection with any Loan Document or
any of the Guarantied Obligations or any direct or indirect security for any of
the Guarantied Obligations; any requirement of promptness or diligence on the
part of the Agent or the Lenders, or any of them, or any other Person; any
requirement to exhaust any remedies under or in connection with, or to mitigate
the damages resulting from default under, any Loan Document or any of the
Guarantied Obligations or any direct or indirect security for any of the
Guarantied Obligations; any benefit of any statute of limitations; and any
requirement of acceptance of this Guaranty or any other Loan Document, and any
requirement that any Guarantor receive notice of any such acceptance;

(c) Any defense or other
right arising by reason of any Law now or hereafter in effect in any
jurisdiction pertaining to election of remedies (including but not limited to
anti-deficiency laws, “one action” laws or the like), or by reason of any
election of remedies or other action or inaction by the Agent or the Lenders, or
any of them (including but not limited to commencement or completion of any
judicial proceeding or nonjudicial sale or other action in respect of collateral
security for any of the Guarantied Obligations), which results in denial or
impairment of the right of the Agent or the Lenders, or any of them, to seek a
deficiency against the Borrower or any other Person or which otherwise
discharges or impairs any of the Guarantied Obligations; and 

(d) Any and all defenses it
may now or hereafter have based on principles of suretyship, impairment of
collateral, or the like. 

5. Reinstatement. This Guaranty is a continuing obligation of the
Guarantors and shall remain in full force and effect notwithstanding that no
Guarantied Obligations may be outstanding from time to time and notwithstanding
any other event or circumstance. Upon termination of all Commitments and
indefeasible payment in full of all Guarantied Obligations, this Guaranty shall
terminate; provided, however, that
this Guaranty shall continue to be effective or be reinstated, as the case may
be, any time any payment of any of the Guarantied Obligations is rescinded,
recouped, avoided, or must otherwise be returned or released by any Lender or
Agent upon or during the insolvency, bankruptcy, or reorganization of, or any
similar proceeding affecting, Borrower or for any other reason whatsoever, all
as though such payment had not been made and was due and owing. 

6. Subrogation. Each Guarantor waives and agrees it will not exercise any rights
against Borrower or any other Guarantor arising in connection with the
Guarantied Obligations (including rights of subrogation, contribution, and the
like) until the Guarantied Obligations have been indefeasibly paid in full. If
any amount shall be paid to any Guarantor by or on behalf of Borrower or any
other Guarantor by virtue of any right of subrogation, contribution, or the
like, such amount shall be deemed to have been paid to such Guarantor for the
benefit of, and shall be held in trust for the benefit of, the Agent and the
Lenders and shall forthwith be paid to the Agent to be credited and applied upon
the Guarantied Obligations, whether matured or unmatured, in accordance with the
terms of the Credit Agreement. 

7. No Stay. Without limitation of any other provision of this Guaranty, if any
declaration of default or acceleration or other exercise or condition to
exercise of rights or remedies under or with respect to any Guarantied
Obligation shall at any time be stayed, enjoined, or prevented for any reason
(including but not limited to stay or injunction resulting from the pendency
against the Borrower or any other Person of a bankruptcy, insolvency,
reorganization or similar proceeding), the Guarantors agree that, for the purposes of this Guaranty and their obligations
hereunder, the Guarantied Obligations shall be deemed to have been declared in
default or accelerated, and such other exercise or conditions to exercise shall
be deemed to have been taken or met. 

4 

8. Taxes. Each Guarantor hereby agrees to be bound by the provisions of Section
5.8 [Taxes] of the Credit Agreement and shall make all payments free and clear
of Taxes as provided therein. 

9. Notices. Each Guarantor agrees that all notices, statements, requests, demands
and other communications under this Guaranty shall be given to such Guarantor at
the address set forth on a Schedule to, or in a Guarantor Joinder and Assumption
Agreement given under, the Credit Agreement and in the manner provided in
Section 11.6 [Notices; Lending Offices] of the Credit Agreement. The Agent and
the Lenders may rely on any notice (whether or not made in a manner contemplated
by this Guaranty) purportedly made by or on behalf of a Guarantor, and the Agent
and the Lenders shall have no duty to verify the identity or authority of the
Person giving such notice. 

10. Counterparts, Telecopy Signatures. This Guaranty may be executed in any number of
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. Each
Guarantor acknowledges and agrees that a telecopy transmission to Agent or any
Lender of signature pages hereof purporting to be signed on behalf of any
Guarantor shall constitute effective and binding execution and delivery hereof
by such Guarantor. 

11. Setoff, Default Payments by
Borrower. 

(a) In the event that at
any time any obligation of the Guarantors now or hereafter existing under this
Guaranty shall have become due and payable, the Agent and the Lenders, or any of
them, shall have the right from time to time, without notice to any Guarantor,
to set off against and apply to such due and payable amount any obligation of
any nature of any Lender or the Agent, or any subsidiary or affiliate of any
Lender or Agent, to any Guarantor, including but not limited to all deposits
(whether time or demand, general or special, provisionally credited or finally
credited, however evidenced) now or hereafter maintained by any Guarantor with
the Agent or any Lender or any subsidiary or affiliate thereof. Such right shall
be absolute and unconditional in all circumstances and, without limitation,
shall exist whether or not the Agent or the Lenders, or any of them, shall have
given any notice or made any demand under this Guaranty or under such obligation
to the Guarantor, whether such obligation to the Guarantor is absolute or
contingent, matured or unmatured (it being agreed that the Agent and the
Lenders, or any of them, may deem such obligation to be then due and payable at
the time of such setoff), and regardless of the existence or adequacy of any
collateral, guaranty, or other direct or indirect security or right or remedy
available to the Agent or any of the Lenders. The rights of the Agent and the
Lenders under this Section are in addition to such other rights and remedies
(including, without limitation, other rights of setoff and banker’s lien) which
the Agent and the Lenders, or any of them, may have, and nothing in this
Guaranty or in any other Loan Document shall be deemed a waiver of or
restriction on the right of setoff or banker’s lien of the Agent and the
Lenders, or any of them. Each of the Guarantors hereby agrees that, to the
fullest extent permitted by Law, any affiliate or subsidiary of the Agent or any
of the Lenders and any holder of a participation in any obligation of any
Guarantor under this Guaranty, shall have the same rights of setoff as the Agent
and the Lenders as provided in this Section (regardless whether such affiliate
or participant otherwise would be deemed a creditor of the Guarantor).

(b) Upon the occurrence and
during the continuation of any default under any Guarantied Obligation, if any
amount shall be paid to any Guarantor by or for the account of Borrower, such amount shall be held in trust for the
benefit of each Lender and Agent and shall forthwith be paid to the Agent to be
credited and applied to the Guarantied Obligations when due and payable.

5 

12. Construction. The section and other headings contained in this
Guaranty are for reference purposes only and shall not affect interpretation of
this Guaranty in any respect. This Guaranty has been fully negotiated between
the applicable parties, each party having the benefit of legal counsel, and
accordingly neither any doctrine of construction of guaranties or suretyships in
favor of the guarantor or surety, nor any doctrine of construction of
ambiguities in agreement or instruments against the party controlling the
drafting thereof, shall apply to this Guaranty. 

13. Successors and Assigns. This Guaranty shall be binding upon each
Guarantor, its successors and assigns, and shall inure to the benefit of and be
enforceable by the Agent and the Lenders, or any of them, and their successors
and assigns. Without limitation of the foregoing, the Agent and the Lenders, or
any of them (and any successive assignee or transferee), from time to time may
assign or otherwise transfer all or any portion of its rights or obligations
under the Loan Documents (including all or any portion of any commitment to
extend credit), or any other Guarantied Obligations, to any other Person in
accordance with the Loan Documents and such Guarantied Obligations (including
any Guarantied Obligations resulting from extension of credit by such other
Person under or in connection with the Loan Documents) shall be and remain
Guarantied Obligations entitled to the benefit of this Guaranty, and to the
extent of its interest in such Guarantied Obligations such other Person shall be
vested with all the benefits in respect thereof granted to the Agent and the
Lenders in this Guaranty or otherwise. 

14. Governing Law; Submission to Jurisdiction; Waiver
of Jury Trial, 

(a) Governing Law. This Guaranty shall be deemed to be a contract
under the Laws of the State of New York and shall, pursuant to New York General
Obligations Law Section 51401, for all purposes be governed by and construed and
enforced in accordance with the laws of the State of New York. 

(b) CERTAIN WAIVERS. EACH GUARANTOR HEREBY: 

(i) IRREVOCABLY CONSENTS TO
THE NONEXCLUSIVE JURISDICTION OF THE COURTS IN THE COUNTY OF NEW YORK IN THE
STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED OR REGISTERED
MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO SUCH GUARANTOR AT THE ADDRESS
PROVIDED FOR IN THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE
COMPLETED UPON ACTUAL RECEIPT THEREOF; NOTWITHSTANDING THE FOREGOING, NOTHING
CONTAINED HEREIN SHALL AFFECT THE RIGHT OF THE AGENT TO SERVE LEGAL PROCESS BY
ANY OTHER MANNER PERMITTED BY LAW; 

(ii) IRREVOCABLY WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED AGAINST IT AS
PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON FORUM NON CONVENIENS OR ANY LACK OF JURISDICTION OR VENUE THAT IT MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDINGS WITH RESPECT
TO THIS GUARANTY; AND

(iii) KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES TRIAL BY JURY IN ANY ACTION, SUIT,
PROCEEDING, OR COUNTERCLAIM OF ANY KIND
ARISING OUT OF OR RELATED TO THIS GUARANTY, THE CREDIT AGREEMENT, OR ANY OTHER
LOAN DOCUMENT, OR ANY COLLATERAL OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING,
WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR
ACTIONS OF THE AGENT OR THE LENDERS RELATING TO THE ADMINISTRATION OF THE LOANS
OR ENFORCEMENT OF THIS GUARANTY OR THE OTHER LOAN DOCUMENTS, TO THE FULLEST
EXTENT PERMITTED BY LAW. SUCH GUARANTOR WILL NOT SEEK TO CONSOLIDATE ANY SUCH
ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED. SUCH GUARANTOR CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
AGENT OR THE LENDERS, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT AGENT OR THE
LENDERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR AGENT AND THE LENDERS
TO ACCEPT THIS GUARANTY, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS AND
MAKE THE LOANS. 

6

15. Severability; Modification to Conform to
Law. 

(a) Wherever possible, each
provision of this Guaranty shall be interpreted in such manner as to be
effective and valid under applicable Law, but if any provision of this Guaranty
shall be prohibited by or invalid under such Law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Guaranty. 

(b) Without limitation of
the preceding subsection (a), to the extent that applicable Law (including
applicable Laws pertaining to fraudulent conveyance or fraudulent or
preferential transfer) otherwise would render the full amount of the Guarantor’s
obligations hereunder invalid, voidable, or unenforceable on account of the
amount of a Guarantor’s aggregate liability under this Guaranty, then,
notwithstanding any other provision of this Guaranty to the contrary, the
aggregate amount of such liability shall, without any further action by the
Agent or any of the Lenders or such Guarantor or any other Person, be
automatically limited and reduced to the highest amount which is valid and
enforceable as determined in such action or proceeding, which (without limiting
the generality of the foregoing) may be an amount which is equal to the greater
of: 

(i) the fair consideration
actually received by such Guarantor under the terms and as a result of the Loan
Documents and the value of the benefits described in this Section 15(b) hereof,
including (and to the extent not inconsistent with applicable federal and state
Laws affecting the enforceability of guaranties) distributions, commitments,
and advances made to or for the benefit of such
Guarantor with the proceeds of any credit extended under the Loan Documents, or

(ii) the excess of (1) the
amount of the fair value of the assets of such Guarantor as of the date of this
Guaranty as determined in accordance with applicable federal and state Laws
governing determinations of the insolvency of debtors as in effect on the date
hereof, over (2) the amount of all liabilities of such Guarantor as of the date
of this Guaranty, also as determined on the basis of applicable federal and
state Laws governing the insolvency of debtors as in effect on the date hereof.

(c) Notwithstanding
anything to the contrary in this Section or elsewhere in this Guaranty, this
Guaranty shall be presumptively valid and enforceable to its full extent in
accordance with its terms, as if this Section (and references elsewhere in this
Guaranty to enforceability to the fullest
extent permitted by Law) were not a part of this Guaranty, and in any related
litigation the burden of proof shall be on the party asserting the invalidity or
unenforceability of any provision hereof or asserting any limitation on any
Guarantor’s obligations hereunder as to each element of such assertion.

7 

16. Additional Guarantors. At any time after the initial execution and
delivery of this Guaranty to the Agent and the Lenders, additional Persons may
become parties to this Guaranty and thereby acquire the duties and rights of
being Guarantors hereunder by executing and delivering to the Agent and the
Lenders a Guarantor Joinder pursuant to the Credit Agreement. No notice of the
addition of any Guarantor shall be required to be given to any pre-existing
Guarantor and each Guarantor hereby consents thereto. 

17. Joint and Several Obligations. Each of the obligations of each and every
Guarantor under this Guaranty are joint and several obligations of the
Guarantors, and each Guarantor hereby waives to the full extent permitted by Law
any defense it may otherwise have to the payment and performance of the
Obligations that its liability hereunder is limited and not joint and several.
Each Guarantor acknowledges and agrees that the foregoing waivers and those set
forth below serve as a material inducement to the agreement of the Agent and the
Lenders to make the Loans, and that the Agent and the Lenders are relying on
each specific waiver and all such waivers in entering into this Guaranty. The
undertakings of each Guarantor hereunder secure the obligations of itself and
the other Guarantors. The Agent and the Lenders, or any of them, may, in their
sole discretion, elect to enforce this Guaranty against any Guarantor without
any duty or responsibility to pursue any other Guarantor and such an election by
the Agent and the Lenders, or any of them, shall not be a defense to any action
the Agent and the Lenders, or any of them, may elect to take against any
Guarantor. Each of the Lenders and Agent hereby reserve all rights against each
Guarantor. 

18. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely,
unconditionally and irrevocably undertakes to provide such funds or other
support as may be needed from time to time by each other Loan Party to honor all
of its obligations under this Guaranty in respect of all Specified Swap
Obligations (provided, however, that each Qualified ECP Guarantor shall only be
liable under this Section 18 for the maximum amount of such liability that can
be hereby incurred without rendering its obligations under this Section 18, or
otherwise under this Guaranty, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer, and not for any greater amount).
The obligations of each Qualified ECP Guarantor under this Section 18 shall
remain in full force and effect until a payment in full of the Guaranteed
Obligations. Each Qualified ECP Guarantor intends that this Section 18
constitute, and this Section 18 shall be deemed to constitute, a “keepwell,
support, or other agreement” for the benefit of each other Guarantor for all
purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

Notwithstanding anything
herein to the contrary, if a Guarantor or a Swap Counterparty makes a written
representation to the Lenders in connection with a Guaranty, a swap, or any
master agreement governing a swap to the effect that Guarantor is or will be an
“eligible contract participant” as defined in the Commodity Exchange Act on the
date this Guaranty becomes effective with respect to such swap (this date shall
be the date of the execution of the swap), and such representation proves to
have been incorrect when made or deemed to have been made, the Lenders reserve
all of their contractual and other rights and remedies, at law or in equity,
including (to the extent permitted by applicable law) the right to claim, and
pursue a separate cause of action, for damages as a result of such
misrepresentation, provided that such Guarantor’s liability for such damages
shall not exceed the amount of the Excluded Swap Obligations with respect to
such swap.

8 

19. Receipt of Credit Agreement, Other Loan Documents.
Benefits. 

(a) Each Guarantor hereby
acknowledges that it has received a copy of the Credit Agreement and the other
Loan Documents and each Guarantor certifies that the representations and
warranties made therein with respect to such Guarantor are true and correct.
Further, each Guarantor acknowledges and agrees to perform, comply with and be
bound by all of the provisions of the Credit Agreement and the other Loan
Documents. 

(b) Each Guarantor hereby
acknowledges, represents and warrants that it receives direct and indirect
benefits by virtue of its affiliation with Borrower and the other Guarantors and
that it will receive direct and indirect benefits from the financing
arrangements contemplated by the Credit Agreement and that such benefits,
together with the rights of contribution and subrogation that may arise in
connection herewith, are a reasonably equivalent exchange of value in return for
providing this Guaranty. 

20. Miscellaneous. 

(a) Generality of Certain Terms. As used in this Guaranty, the terms “hereof’,
“herein” and terms of similar import refer to this Guaranty as a whole and not
to any particular term or provision; the term “including”, as used herein, is
not a term of limitation and means “including without limitation”. 

(b) Amendments, Waivers. No amendment to or waiver of any provision of
this Guaranty, and no consent to any departure by any Guarantor herefrom, shall
in any event be effective unless in a writing manually signed by or on behalf of
the Agent and the requisite percentage of Lenders pursuant to Section 11.1 of
the Credit Agreement. Any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. No delay or
failure of the Agent or the Lenders, or any of them, in exercising any right or
remedy under this Guaranty shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right or remedy preclude any other or
further exercise thereof or the exercise of any other right or remedy. The
rights and remedies of the Agent and the Lenders under this Guaranty are
cumulative and not exclusive of any other rights or remedies available
hereunder, under any other agreement or instrument, by Law, or otherwise.

(c) Telecommunications. Each Lender and Agent shall be entitled to rely
on the authority of any individual making any telecopy, electronic or telephonic
notice, request or signature without the necessity of receipt of any
verification thereof. 

(d) Expenses. Each Guarantor unconditionally agrees to pay all reasonable costs and
expenses, including reasonable attorney’s fees, incurred by the Agent or any of
the Lenders in enforcing this Guaranty against any Guarantor, and each Guarantor
shall pay and indemnify each Lender and Agent for, and hold it harmless from and
against, any and all obligations, liabilities, losses, damages, costs, expenses
(including disbursements and reasonable legal fees of counsel to any Lender or
Agent), penalties, judgments, suits, actions, claims and disbursements imposed
on, asserted against or incurred by any Lender or Agent (i) relating to the
preparation, negotiation, execution, administration or enforcement of or
collection under this Guaranty or any document, instrument or agreement relating
to any of the Obligations, including in any bankruptcy, insolvency or similar
proceeding in any jurisdiction or political subdivision thereof; (ii) relating
to any amendment, modification, waiver or consent hereunder or relating to any
telecopy or telephonic transmission purporting to be by any Guarantor or
Borrower; (iii) in any way relating to or arising out of this Guaranty, or any
document, instrument or agreement relating to any of the Guarantied Obligations,
or any action taken or omitted to be taken by any Lender or Agent hereunder, and
including those arising directly or indirectly from the violation or asserted
violation by any Guarantor or Borrower or Agent or any Lender of any Law, rule,
regulation, judgment, order or the like of any jurisdiction or political
subdivision thereof (including those relating to environmental
protection, health, labor, importing, exporting or safety) and regardless
whether asserted by any governmental entity or any other Person. 

9 

(e) Prior Understandings. This Guaranty and the Credit Agreement
constitute the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede any and all other prior and contemporaneous
understandings and agreements. 

(f) Survival. All representations and warranties of the Guarantors made in connection
with this Guaranty shall survive, and shall not be waived by, the execution and
delivery of this Guaranty, any investigation by or knowledge of the Agent and
the Lenders, or any of them, any extension of credit or any other event or
circumstance whatsoever. 

[SIGNATURE PAGES
FOLLOW]

10 

IN WITNESS WHEREOF, each
Guarantor, intending to be legally bound, has executed this Guaranty as of the
date first above written with the intention that this Guaranty shall constitute
a sealed instrument. 

	NJR RETAIL HOLDINGS
	CORPORATION
	 	
	 	
	By:     	
		Patrick M. Migliaccio
		Senior Vice President, Chief
		Financial Officer and
      Treasurer
		 
	NJR HOME SERVICES COMPANY
	

	 
	 	 
	By:	
		Patrick M. Migliaccio
		Senior Vice President, Chief
		Financial Officer and
      Treasurer
		 
	NJR PLUMBING SERVICES, INC.
		 
		 
	By:	
		Patrick M. Migliaccio
		Senior Vice President, Chief
		Financial Officer and
      Treasurer
		 
	NJR RETAIL SERVICES COMPANY
		 
		 
	By:	
		Patrick M. Migliaccio
		Senior Vice President, Chief
		Financial Officer and
      Treasurer
		 
	COMMERCIAL REALTY AND
	RESOURCES CORP.
		 
		 
	By:	
		Patrick M. Migliaccio
		President, Chief Financial Officer
  and
		Treasurer

11 

	NJR SERVICE CORPORATION
		 
		 
	By:     	
		James W.
      Kent
		Treasurer
		 
	NJR ENERGY SERVICES COMPANY
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	NJR STORAGE HOLDINGS COMPANY
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	NJR MIDSTREAM HOLDINGS
	CORPORATION
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	NJR ENERGY INVESTMENTS
	CORPORATION
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	NJR CLEAN ENERGY VENTURES
	CORPORATION
		 
		 
	By:	
		James W.
      Kent
		Treasurer

12 

	NJR CLEAN ENERGY VENTURES II
	CORPORATION
		 
		 
	By:     	
		James W.
      Kent
		Treasurer
		 
	NJR CLEAN ENERGY VENTURES III
	CORPORATION
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	TWO DOT WIND FARM, LLC
		 
	By: NJR Clean Energy Ventures II
	Corporation, its sole member
		 
		 
	By:	
		James W.
      Kent
		Treasurer
		 
	CARROLL AREA WIND FARM, LLC
		 
	By: NJR Clean Energy Ventures II
	Corporation, its sole member
		 
		 
	By:	
		James W.
      Kent
		Treasurer
	 	
	ALEXANDER WIND FARM, LLC
		 
	By: NJR Clean Energy Ventures II
	Corporation, its sole member
		 
		 
	By:	
		James W.
      Kent
		Treasurer

13 

	RINGER HILL WIND LLC
		 
	By: NJR Clean Energy Ventures II
	Corporation, its sole member
		 
		 
	By: 	
		James W.
      Kent
		Treasurer
	 	
	MEDICINE BOW WIND, LLC
		 
	By: NJR
      Clean Energy Ventures II
	Corporation,
      its sole member
		 
		 
	By:	
		James W.
      Kent
		Treasurer
	 	
	BERNARDS SOLAR, LLC
		 
	By: NJR Clean Energy Ventures II
	Corporation, its sole member
		 
		 
	By:	
		James W.
      Kent
		Treasurer

14 

EXHIBIT
1.1(R)

FORM
OF
NOTE

	 	      	New York,
      New York
			 
	$_______________		_________
      ___, 2017

FOR VALUE RECEIVED, the
undersigned, NEW JERSEY RESOURCES CORPORATION, a New Jersey corporation (herein
called the “Borrower”), hereby
promises to pay to the order of _______________ (the “Lender”), the principal sum of _______________ Dollars (U.S. $__________),
payable on such dates as set forth in the Credit Agreement, dated as of the date
hereof, among the Borrower, the Lenders now or hereafter party thereto, and U.S.
Bank National Association, as agent (hereinafter referred to in such capacity as
the “Agent”) (as amended, restated, modified, or
supplemented from time to time, the “Credit Agreement”), with
the entire outstanding balance due and payable by 11:00 a.m. (New York time) on
the Maturity Date, together with interest on the unpaid principal balance hereof
from time to time outstanding from the date hereof at the rate or rates per
annum specified by the Borrower pursuant to, or as otherwise provided in, the
Credit Agreement. 

Interest on the unpaid
principal balance hereof from time to time outstanding from the date hereof will
be payable on the dates and at the times provided for in the Credit Agreement.
Upon the occurrence and during the continuation of an Event of Default, the
Borrower shall pay interest on the entire principal amount of the then
outstanding Term Loan evidenced by this Note and all other obligations due and
payable to the Lender pursuant to the Credit Agreement and the other Loan
Documents at a rate per annum as set forth in Section 4.3 of the Credit
Agreement. Such interest rate will accrue before and after any judgment has been
entered. 

Subject to the provisions
of the Credit Agreement, payments of both principal and interest shall be made
without setoff, counterclaim, or other deduction of any nature at the office of
the Agent located at 461 Fifth Avenue, New York, New York 10017, unless
otherwise directed in writing by the holder hereof, in lawful money of the
United States of America in immediately available funds. 

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

This Note shall bind the
Borrower and its successors and assigns, and the benefits hereof shall inure to
the benefit of the Lender and its successors and assigns. All references herein
to the “Borrower” and the “Lender” shall be deemed to apply to the Borrower and
the Lender, respectively, and their respective successors and assigns as
permitted under the Credit Agreement. 

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

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

[SIGNATURE PAGE FOLLOWS]

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

	NEW JERSEY RESOURCES
	CORPORATION, A
      New Jersey
	corporation

	 
	By: 	

	Name:
	Title:

EXHIBIT
2.4

FORM OF

LOAN
REQUEST 

	TO:	       	U.S. Bank National Association, as
    Agent
			U.S. Bank Tower
			425 Walnut Street, 8th Floor ML
  CN-W-8
			Cincinnati, OH 45202
	 
	FROM:		New Jersey Resources Corporation (the
      “Borrower”)
	 
	RE:		Credit Agreement (as it may be amended,
      restated, modified or supplemented, the “Credit Agreement”) to be
      dated on or about August 18, 2017 by and among the Borrower, the
      Guarantors party thereto, the Lenders party thereto, and U.S. Bank
      National Association, as administrative agent for the Lenders (the
      “Agent”)

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

Pursuant to Section 2.4 of
the Credit Agreement, the undersigned hereby makes the following Term Loan
Request: 

1. The proposed Borrowing
Date _________, 201__. 

2. The aggregate amount of
the proposed portion of the Term Loan comprising the Borrowing Tranche is
$__________.1

3. The Interest Rate Option
for the proposed Borrowing Tranche is a [Base Rate Option] [LIBOR Rate
Option]. 

4. [The duration of the
Interest Period for the LIBOR Rate Option is _____ month[s]2. 

[SIGNATURE PAGE FOLLOWS]

____________________

1 Such amount
shall be in integral multiples of $1,000,000 and not less than $3,000,000 for
each Borrowing Tranche to which the LIBOR Rate Option applies and not less than
the lesser of $1,000,000 and in integral multiples of $100,000 for each
Borrowing Tranche to which the Base Rate Option applies. 

2 1, 2, 3 or 6
months or any shorter period that is approved by the Agent. 

The Company has caused this
Term Loan Request to be executed and delivered by its officer thereunto duly
authorized on _____ __, 201_.

	NEW JERSEY RESOURCES
	CORPORATION

	 
	By: 	
		   	Name:
			Title:

EXHIBIT 5.8.6(A)
[FORM
OF]

U.S. TAX COMPLIANCE
CERTIFICATE
(For Foreign Banks That Are
Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to
the Credit Agreement dated as of August 18, 2017 among New Jersey Resources
Corporation, the Guarantors parties thereto, the Lenders parties thereto (the
“Lenders”), and U.S. Bank National Association, as
administrative agent for the Lenders. 

Pursuant to the provisions
of Section 5.8 [Taxes]
of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of
which it is providing this certificate, (ii) it is not a bank within the meaning
of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder
of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (iv)
it is not a controlled foreign corporation related to the Borrower as described
in Section 881(c)(3)(C) of the Code. 

The undersigned has
furnished the Agent and the Borrower with a certificate of its non-U.S. Person
status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees
that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform the Borrower and the Agent, and (2) the
undersigned shall have at all times furnished the Borrower and the Agent with a
properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of the
two calendar years preceding such payments. 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 

	[NAME OF
      BANK]
	 

	 
	By: 	________________________

	Name:
	Title:
	 
	Date:
      __________________, 20__

EXHIBIT 5.8.6(B)
[FORM
OF]

U.S. TAX COMPLIANCE
CERTIFICATE
(For Foreign Participants
That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to
the Credit Agreement dated as of August 18, 2017 among New Jersey Resources
Corporation, the Guarantors parties thereto, the Lenders parties thereto (the
“Lenders”), and U.S. Bank National Association, as
administrative agent for the Lenders. 

Pursuant to the provisions
of Section 5.8 [Taxes]
of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the participation in respect of which it is providing this certificate, (ii)
it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii)
it is not a ten percent shareholder of the Borrower within the meaning of
Section 881(c)(3)(B) of the Code, and (iv) it is not a controlled foreign
corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code]. 

The undersigned has
furnished its participating Bank with a certificate of its non-U.S. Person
status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees
that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform such Bank in writing, and (2) the
undersigned shall have at all times furnished such Bank with a properly
completed and currently effective certificate in either the calendar year in
which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments. 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 

	[NAME OF
      PARTICIPANT]
	 

	 
	By: 	________________________

	Name:
	Title:
	 
	Date:
      __________________, 20__

EXHIBIT 5.8.6(C)
[FORM
OF]

U.S. TAX COMPLIANCE
CERTIFICATE
(For Foreign
Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to
the Credit Agreement dated as of August 18, 2017 among New Jersey Resources
Corporation, the Guarantors parties thereto, the Lenders parties thereto (the
“Lenders”), and U.S. Bank National Association, as
administrative agent for the Lenders. 

Pursuant to the provisions
of Section 5.8 [Taxes]
of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record owner of the
participation in respect of which it is providing this certificate, (ii) its
direct or indirect partners/members are the sole beneficial owners of such
participation, (iii) with respect such participation, neither the undersigned
nor any of its direct or indirect partners/members is a bank extending credit
pursuant to a loan agreement entered into in the ordinary course of its trade or
business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of
its direct or indirect partners/members is a ten percent shareholder of the
Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of
its direct or indirect partners/members is a controlled foreign corporation
related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has
furnished its participating Bank with IRS Form W-8IMY accompanied by one of the
following forms from each of its partners/members that is claiming the portfolio
interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY
accompanied by an IRS Form W-8BEN from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption. By
executing this certificate, the undersigned agrees that (1) if the information
provided on this certificate changes, the undersigned shall promptly so inform
such Bank and (2) the undersigned shall have at all times furnished such Bank
with a properly completed and currently effective certificate in either the
calendar year in which each payment is to be made to the undersigned, or in
either of the two calendar years preceding such payments. 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 

	[NAME OF PARTICIPANT]
	 

	 
	By: 	________________________

	Name:
	Title:
	 
	Date:
      __________________, 20__

EXHIBIT 5.8.6(D)
[FORM
OF]

U.S. TAX COMPLIANCE
CERTIFICATE
(For Foreign Banks
That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to
the Credit Agreement dated as of August 18, 2017 among New Jersey Resources
Corporation, the Guarantors parties thereto, the Lenders parties thereto (the
“Lenders”), and U.S. Bank National Association, as
administrative agent for the Lenders. 

Pursuant to the provisions
of Section 5.8 [Taxes]
of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record owner of the Loan(s)
(as well as any Note(s) evidencing such Loan(s)) in respect of which it is
providing this certificate, (ii) its direct or indirect partners/members are the
sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such
Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit
Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a
loan agreement entered into in the ordinary course of its trade or business
within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct
or indirect partners/members is a ten percent shareholder of the Borrower within
the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or
indirect partners/members is a controlled foreign corporation related to the
Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has
furnished the Agent and the Borrower with IRS Form W-8IMY accompanied by one of
the following forms from each of its partners/members that is claiming the
portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY
accompanied by an IRS Form W-8BEN from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption. By
executing this certificate, the undersigned agrees that (1) if the information
provided on this certificate changes, the undersigned shall promptly so inform
the Borrower and the Agent, and (2) the undersigned shall have at all times
furnished the Borrower and the Agent with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be
made to the undersigned, or in either of the two calendar years preceding such
payments. 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 

[NAME OF BANK] 

	By: 	__________________________

	 
	Name: _______________________
	 
	Title: ________________________
	  
	Date: __________________, 20___

EXHIBIT
7.1.3(A)

Matters to be covered in
Opinions of Counsel for
New Jersey Resources Corporation 

	1.	      
      	With
      respect to the Non-New Jersey Loan Parties:
			(a)	      
      	Existence and good
      standing;
			(b)		Power and
      authority;
			(c)		Authorization of Loan
      Documents; and
			(d)		Execution and
      delivery of Loan Documents.
	2.		Enforceability of Loan Documents against the Loan
  Parties.
	3.		Execution,
      delivery and performance of Loan Documents does not conflict
    with:
			(a)		Organizational
      documents of non-New Jersey Loan Parties;
			(b)		New York or Federal
      law;
			(c)		Material Orders;
      and
			(d)		Specified
      Agreements
	4.		Investment
      Company Act

EXHIBIT
7.1.3(B)

Matters to be covered in
Opinions of In-House Counsel for
New Jersey Resources Corporation:

	1.	      
      	With
      respect to the New Jersey Loan Parties:
			(a)	      
      	Existence and good
      standing;
			(b)		Power and
      authority;
			(c)		Authorization of Loan
      Documents; and
			(d)		Execution and
      delivery of Loan Documents.
	2.		Execution,
      delivery and performance of Loan Documents does not conflict
    with:
			(a)		Organizational
      documents of non-New Jersey Loan Parties; and
			(b)		New Jersey
    law;
	3.		Registration under New Jersey Law

EXHIBIT
8.2.5

FORM
OF
ACQUISITION
COMPLIANCE CERTIFICATE

________ ___, 20___

U.S. Bank National
Association, as Agent
461 Fifth Avenue
New York, New York 10017
and
each Lender party to the Credit Agreement (defined below) 

Ladies and Gentlemen:

I refer to the Credit
Agreement dated as of August 18, 2017 (as amended, supplemented, restated or
modified from time to time, the “Credit Agreement”) among
New Jersey Resources Corporation (the “Borrower”), the Lenders
party thereto, and U.S. Bank National Association in its capacity as
administrative agent for the Lenders (the “Agent”). Unless otherwise defined herein, terms defined in the Credit
Agreement are used herein with the same meanings. References herein to Sections
of the Credit Agreement are qualified, in their entirety, by the applicable
provision of the Section of the Credit Agreement so referred to and together
with all related provisions and definitions referred to in such Section or
incorporated therein. 

I, ___________________,
[Chief Executive Officer/President/Chief Financial Officer] of the Borrower, do
hereby certify on behalf of the Borrower as of the [fiscal quarter/fiscal year
ended , 20___] as follows: 

In connection with Section
8.2.5 of the Credit Agreement and with respect to a proposed Permitted
Acquisition by the Borrower (the “Acquiring Company”) of
__________ [assets/stock] [by purchase/by merger and insert description of the
transaction] (the “Acquisition”) of
______________ [insert name of entity whose assets are/stock is being acquired]
(the “Target”). 

The proposed date of the
Acquisition is ________ ___, 20___ (the “Acquisition Date”) [at
least 5 Business Days after the date of this certificate]. 

The “Report Date” herein shall be the date of the most recent fiscal quarter ended prior
to the proposed Acquisition of the Target. 

The total consideration to
be paid including (i) cash paid by the Borrower, directly or indirectly, to the
Target, (ii) the Indebtedness, fixed or contingent, incurred or assumed the
Borrower, whether in favor of Target or otherwise, (iii) any Guaranty given or
incurred by the Borrower in connection with the Acquisition and (iv) any other
consideration given or obligation incurred by the Borrower in connection with
the Acquisition is $________. 

The Target is engaged in
__________________ [describe business being acquired]. 

The Borrower is, and after
giving effect to the proposed Permitted Acquisition shall be, in compliance with
Section 8.2.12 of the Credit Agreement, as more fully set forth on
Appendix A attached hereto. 

The Borrower, in order to
consummate the proposed Permitted Acquisition, has incurred or will incur $_________ of Indebtedness permitted by Section 8.2.1(viii) (and, if secured,
clause (xii) of the definition of Permitted Liens). 

Immediately prior to and
after giving effect to the proposed Acquisition: (i) the representations and
warranties of Loan Parties contained in Section 6 of the Credit Agreement and in
the other Loan Documents are true on and correct with the same effect as though
such representations and warranties had been made on and as of such date (except
representations and warranties which expressly related solely to an earlier date
or time and except for the representations and warranties of the Loan Parties
contained in the first sentence of Section 6.1.6 [Litigation], the last sentence
of Section 6.1.8(b) [Financial Statements], and Section 6.1.21 [Environmental
Matters] of the Credit Agreement), (ii) the Borrower has performed and complied
with all covenants and conditions of the Credit Agreement and the other Loan
Documents, and (iii) no event has occurred and is continuing which constitutes
an Event of Default or Potential Default. 

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

	By: 	 

	Name:  	 

	Title:  	[Chief Executive Officer/President/
Chief
      Financial Officer]

APPENDIX
A

	Credit
      Agreement	      	Consolidated
for
      Borrower
and its
Subsidiaries	      	Target	      	Consolidated
Pro
      Forma8
	Maximum Leverage Ratio (Section 8.2.12).  The ratio of (A) Consolidated
      Total Indebtedness to (B) Consolidated Total Capitalization as of the
      Report Date is:			_______ to			_______ to			_______ to
			 			1.00			1.00			1.00
			 									
	which is not more than the maximum
      permitted ratio of 0.65 to 1.0	 								 
	 	 	
	(A)	Consolidated Total Indebtedness,
      as of the Report Date, is computed as follows:									
	        	   	
		(i.)	borrowed moneys		$			$			$	 
		          	  		 						
		(ii.)	other transactions similar to
      borrowed money transactions		$			$	 	 	$	
		 	 								
		(iii.)	note
      purchase or acceptance credit facilities		$			$			$	
		 				 					
		(iv.)	reimbursement obligations
      (contingent or otherwise)		$			$			$	
		 	
		(v.)	Hedging Transactions		$			$			$	
		 									
		(vi.)	Guarantees of Hedging Transactions
      and of borrowed money transactions		$			$			$	

8 All
calculations are on a pro-forma basis, based upon the financial statements of
the Borrower as of the Report Date, after giving effect to the proposed
Permitted Acquisition (i.e., if a financial covenant is measured for the
immediately preceding four fiscal quarters as of the Report Date, the financial
results of the Target as well as the Borrower and its Subsidiaries will be
included in that four fiscal quarter period calculation; provided, however, that income earned or expenses incurred by the
Target prior to the date of the proposed Permitted Acquisition shall be
excluded) and include in such calculations Indebtedness or other liabilities
assumed or incurred in connection with such Permitted Acquisition.

	Credit
      Agreement	      	Consolidated
for
      Borrower
and its
Subsidiaries	      	Target	      	Consolidated
Pro
      Forma8
		(vii.)	Hybrid Securities described in clause (i) of
      the definition of “Hybrid Security” in the Credit Agreement		$			$	 		$	 
		 										
		(viii.)	mandatory repayment obligations with respect
      to Hybrid Securities described in clause (ii) of the definition of “Hybrid
      Security” in the Credit Agreement		$			$			$	
		 	 									
		(ix.)	sum of items (i) through (viii) equals
      Consolidated Total Indebtedness		$			$			$	
	  	 	
	(B)	Consolidated Total Capitalization,
      as of the Report Date, is computed as follows:									
	        	   	
		(i.)	Consolidated Total Indebtedness
      (see item (1)(A)(ix) above)		$			$			$	 
		          	  		 						
		(ii.)	Common Shareholders’
    Equity		$			$	 	 	$	
		 	 								
		(iii.)	Preferred Shareholders’
      Equity		$			$			$	
		 				 					
		(iv.)	sum of items (i) through (iii)
      equals Consolidated Total Capitalization		$			$			$	

EXHIBIT
8.3.3

FORM OF

COMPLIANCE
CERTIFICATE

________ ___, 20___

U.S. Bank National
Association, as Agent
461 Fifth Avenue
New York, New York 10017
and
each Lender party to the Credit Agreement (defined below) 

Ladies and Gentlemen:

I refer to the Credit
Agreement dated as of August 18, 2017 (as amended, supplemented, restated or
modified from time to time, the “Credit Agreement”) among
New Jersey Resources Corporation (the “Borrower”), the Lenders
party thereto, and U.S. Bank National Association in its capacity as
administrative agent for the Lenders (the “Agent”). Unless otherwise defined herein, terms defined in the Credit
Agreement are used herein with the same meanings. References herein to Sections
of the Credit Agreement are qualified, in their entirety, by the applicable
provision of the Section of the Credit Agreement so referred to and together
with all related provisions and definitions referred to in such Section or
incorporated therein. 

I, __________________,
[Chief Executive Officer/President/Chief Financial Officer] of the Borrower, do
hereby certify on behalf of the Borrower as of the [fiscal quarter/fiscal year
ended ________ ___, 20__] (the “Report Date”), as follows:

	(1)       	Maximum
      Leverage Ratio (Section
      8.2.12). The ratio of (A) Consolidated Total Indebtedness to (B)
      Consolidated Total Capitalization of the Borrower and its Subsidiaries is
      _________ to 1.00 as of the Report Date, which is not more than the
      maximum permitted ratio of 0.65 to 1.00.

	         	(A)	Consolidated Total Indebtedness, as of the
      Report Date, is computed as follows:
		          	(i)	borrowed moneys	      	$     	
				 		 	
			(ii)	note
      purchase or acceptance credit facilities		$	
				 			 
			(iii)	reimbursement obligations (contingent or
      otherwise)		$	
				 	 		
			(iv)	other transactions similar to borrowed
      money		$	
				 			
			(v)	Hedging Transactions		$	
				 			
			(vi)	Guarantees of Hedging Transactions and of
      borrowed money transactions		$	
			          	  			
			(vii) 	Hybrid Securities described in clause (i) of
      the definition of “Hybrid Security” in the Credit Agreement		$	
		 	
			(viii)	mandatory repayment obligations with respect to
      Hybrid Securities described in clause (ii) of the definition of “Hybrid
      Security” in the Credit Agreement		$	
				 			
			(ix)	sum of items (i) through (viii) equals Consolidated Total
      Indebtedness		$	

	         	(B)	Consolidated Total Capitalization, as of the
      Report Date, is computed as follows:
				 			
		          	(i)	Consolidated Total Indebtedness (see item
      (1)(A)(ix) above)	      	$     	
			          	 			
			(ii)	Common Shareholders’ Equity	 	$	
				 	 		 
			(iii)	Preferred Shareholders’ Equity		$	
				 			
			(iv)	sum
      of items (i) through (iii) equals Consolidated Total
    Capitalization		$	

	(2)	Indebtedness in respect of capitalized leases incurred pursuant to
      Section 8.2.1(iv) by the Loan Parties and Unregulated Subsidiaries, as of
      the Report Date $_________, which does not exceed One Hundred Million and
      00/100 Dollars ($100,000,000.00).
	         	
	(3)	Indebtedness incurred pursuant to Section 8.2.1(vi) secured by
      Liens permitted by Section 8.2.2(i) as of the Report Date is $__________,
      which does not exceed Thirty-Five Million and 00/100 Dollars
      ($35,000,000.00).
	 
	(4)	Indebtedness incurred pursuant to Section 8.2.1(vii) secured by
      Purchase Money Security Interests permitted by clause (xi) of the
      definition of Permitted Liens for the Loan Parties and their Unregulated
      Subsidiaries as of the Report Date is $________, which does not exceed
      Twenty Million and 00/100 Dollars ($20,000,000.00).
	 
	(5)	Indebtedness incurred pursuant to Section 8.2.1(viii) of an
      Acquired Person that existed prior to the Permitted Acquisition, was not
      incurred in contemplation of the Permitted Acquisition and, if secured, is
      secured by Liens permitted by clause (xii) of the definition of Permitted
      Liens as of the Report Date is $________, which does not exceed Seventy-
      Five Million and 00/100 Dollars ($75,000,000.00).
	 
	(6)	Each of the Loan Parties and their Unregulated Subsidiaries have
      sold, transferred or leased $________ of assets, as permitted by Section
      8.2.6(vii), which amount does not exceed the permitted amount of $________
      (such permitted amount equal to 10% of consolidated total assets of the
      Borrower and its Subsidiaries for the applicable fiscal year of the
      Borrower).
	 
	(7)	During the fiscal [quarter/year] ended on the Report Date, the Loan
      Parties and their Unregulated Subsidiaries have declared or made dividend
      payments or other distribution or purchased or redeemed or otherwise
      acquired shares of stock, warrants, rights or options permitted by Section
      8.2.13 as follows: [Insert
      description of each action undertaken, including the date thereof, the
      dollar amount thereof and a description of the
      transaction].

	(8)       	The Loan Parties and
      their Unregulated Subsidiaries have engaged in off-balance sheet
      transactions that are functionally equivalent to borrowed money, as
      permitted by Section 8.2.14, with aggregate liabilities, as of the Report
      Date, of $________, which does not exceed $_________ (such permitted
      amount equal to 10% of total assets of the Borrower and its Subsidiaries,
      determined in accordance with GAAP).
	         	
	(9)	The representations
      and warranties of the Borrower contained in Section 6 of the Credit
      Agreement (other than the representations and warranties of the Loan
      Parties contained in the first sentence of Section 6.1.6 [Litigation], the
      last sentence of Section 6.1.8(b) [Financial Statements], and Section
      6.1.21 [Environmental Matters]) and in the other Loan Documents are true
      on and as of the Report Date with the same effect as though such
      representations and warranties had been made on and as of such date
      (except representations and warranties which expressly related solely to
      an earlier date or time) and the Borrower has performed and complied with
      all covenants and conditions of the Credit Agreement and the other Loan
      Documents. No event has occurred and is continuing which constitutes an
      Event of Default or Potential Default.

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

	By: 	 

	Name:  	 

	Title:  	[Chief Executive Officer/President/
Chief
      Financial Officer]

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