Document:

Exhibit
10.4

SUMMARY
OF TERMS OF ARRANGEMENT FOR PERSONAL USE OF AIRCRAFT 

BY KENNETH E. COMPTON

·                  Kenneth
E. Compton, the Chief Executive Officer of Advance America, Cash Advance
Centers, Inc. (the “Company”), is entitled to use the Company’s aircraft, whether
owned by the Company, a subsidiary of the Company, or leased from a third party
by the Company or one of its subsidiaries, for personal use for an aggregate of
up to twenty-five flight hours per year, subject to aircraft availability in
light of the Company’s business needs.Exhibit 4.5

 

Execution
version

CREDIT AGREEMENT

This CREDIT AGREEMENT
(this “Agreement”) is dated as of October 12, 2006 and is by and among NEW
JERSEY RESOURCES CORPORATION (“NJRC”), a New Jersey corporation, NJR ENERGY SERVICES COMPANY (“NJRESC”), a New Jersey
corporation (a “Borrower” and NJRC and NJRESC, together, the “Borrowers”) and BANK OF TOKYO-MITSUBISHI UFJ TRUST
COMPANY, a New York trust company (the “Bank”).

WHEREAS,
the Borrowers have requested the Bank to provide a revolving credit facility to
the Borrowers in an aggregate principal amount not to exceed $30,000,000;

WHEREAS,
the Borrowers are jointly and severally liable as obligors under this
Agreement; and

WHEREAS, the Borrowers desire the Bank to extend credit to the
Borrowers, and the Bank agrees to extend credit to the Borrowers, all in
accordance with the terms and conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby confirmed and acknowledged, the
Borrowers and the Bank hereby agree as follows:

Section 1.               Definitions
and Interpretation.

As used herein, the following terms shall have the meanings set forth
below:

(a)           “Affiliate”
shall mean, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such first Person.

(b)           “Agreement Date”
shall mean the date first set above, such date being the date as of which this
Agreement was executed and delivered by the parties hereto.

(c)           “Applicable Law”
shall mean, anything in Section 13 to the contrary notwithstanding, (i) all
applicable common law and principles of equity and (ii) all applicable
provisions of all (A) constitutions, statutes, rules, regulations and orders of
governmental bodies, (B) Governmental Approvals and (C) orders, decisions,
judgments and decrees of all courts and arbitrators.

(d)           “Authorized Officer”
shall mean those individuals, designated by written notice to the bank from the
Borrowers, authorized to execute notices, reports and other

 

documents on behalf of the Borrowers required hereunder.  The Borrowers may amend such list of
individuals from time to time by giving written notice of such amendment to the
Bank.

(e)           “Bank’s Office”
shall mean Bank of Tokyo-Mitsubishi UFJ Trust Company, 1251 Avenue of the
Americas, 12th Floor, New York, New York 10020-1104.

(f)            “Business Day”
shall mean any day except a day (i) which is a Saturday or a Sunday, or (ii)
on which commercial banks are not required or authorized to remain open for the
regular transaction of international and domestic business in the City of New
York.

(g)           “Consolidated Income
from Operations” for any
period of determination shall mean
(i) the sum of net income (provided that there shall be excluded from net income: (a) any extraordinary items of
gain or loss (including, without limitation, those items created by mandated changes in accounting treatment), and
(b) any gain or loss of any Person accounted for on the equity method except to
the extent of cash distributions received by NJRC or any Subsidiary of NJRC during the period of
determination with respect to any gain of any Person accounted for on the equity method), depreciation, amortization,
other non-cash charges to net income, interest expense and income tax
expense minus (ii) non-cash credits to net income,
in each case of NJRC and its
Subsidiaries for such period determined and consolidated in accordance with GAAP.

(h)           “Consolidated Interest Expense” for any period of determination shall mean interest expense for
such period of NJRC and its Subsidiaries
determined on a consolidated basis in accordance with GAAP.

(i)            “Consolidated Shareholders’ Equity” shall mean as of any date of determination
the sum of the amounts under the headings “Common Shareholders’ Equity” and “Preferred
Shareholders’ Equity” on the balance sheet, prepared in accordance with GAAP,
for NJRC  and its Subsidiaries on a
consolidated basis as of such date of determination.

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

(k)           “Consolidated Total Indebtedness” shall
mean as of any date of determination total Indebtedness, without duplication,
of NJRC  and its Subsidiaries.

(l)            “Credit Agreement
Related Claim” shall mean any claim (whether sounding in tort, contract or
otherwise) in any way related to, arising out of, or connected with, this
Agreement, or the relationships established hereunder or thereunder, whether
such claim arises or is asserted before or after the Agreement Date.

 

(m)          “Credit Facility”
shall have the meaning ascribed to such term in Section 2 hereof.

(n)           “Credit Facility
Termination Date” shall mean October 12, 2009.

(o)           “Default” shall
mean any condition or event that constitutes an Event of Default or that with
the giving of notice or lapse of time or both would, unless cured or waived,
become an Event of Default.

(po)         “Dollars” and the
sign “$” shall each refer to the lawful currency of the United States of
America.

(q)           “Environmental
Laws” shall mean as of any date the Comprehensive Environmental Response
Compensation and Liability Act, the Hazardous Materials Transportation Act, the
Resource Conservation and Recovery Act, the Federal Water Pollution Control Act,
the Toxic Substances Control Act, and the Occupational Safety and Health Act,
as such laws have been amended or supplemented, and any Federal, state, or
local statute, ordinance, rule or regulation in effect.

(r)            “ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended from time
to time.

(s)           “Event of Default”
shall have the meaning ascribed to such term in Section 11 of this Agreement.

(t)            “GAAP” shall mean generally
accepted accounting principles applicable in the United States set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies
with similar functions of comparable stature and authority within the U.S.
accounting profession), which are applicable to the circumstances as of the
date of determination.

(u)           “Governmental
Approval” shall mean any authorization, consent, approval, license or
exemption of, registration or filing with, or report or notice to, a
governmental unit.

(v)           “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.

(w)          “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 NJRC and its
Subsidiaries, as in effect on the date of
this Agreement and as hereafter amended from time to time, a copy of which has been delivered to the Bank.

(x)            “Hedging
Transaction” shall mean any transaction entered into by a Loan Party or any of its
Subsidiaries in accordance with the Hedging Contract Policies.

(y)           “Hybrid Security” shall mean any of the following:
(i) beneficial interests issued by a
trust which constitutes a Subsidiary of the Borrowers, substantially all of the assets of which trust are unsecured Indebtedness of the Borrowers or any Subsidiary of the Borrowers 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.

(z)            “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: (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 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 thirty (30) days past due), (v) any Hedging Transaction, to the
extent that any indebtedness, obligations or liabilities of such Person in respect thereof constitutes “indebtedness”
as determined in accordance with
GAAP, (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.

(aa)         “Interest Payment
Date” shall mean the last Business Day of each calendar month and the Credit Facility Termination Date.

(bb)         “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).

(cc)         “Loan” shall
mean any loan of Dollars made by the Bank to the Borrowers under Section 3 of
this Agreement.

(dd)         “Materially
Adverse Effect” shall mean, (i) with respect to any Person, any materially
adverse effect on such Person’s assets, liabilities, financial condition or
results of operations, (ii) with respect to any contract, agreement or other
obligation (other than this Agreement), any materially adverse effect, as to
any party thereto, upon the binding nature thereof or the validity or
enforceability thereof and (iii) with respect to this Agreement, any materially
adverse effect on the legality, binding nature, validity or enforceability
thereof.

(ee)          “Maximum
Permissible Rate” shall mean, with respect to interest payable on any
amount, the rate of interest on such amount that, if exceeded, could, under
Applicable Law, result in (i) civil or criminal penalties being imposed on the
Bank or (ii) the Bank’s being unable to enforce payment of (or, if collected,
retain) all or any part of such amount or the interest payable thereon.

(ff)           “Official Body”
shall mean any national, federal, state, local or other government or political
subdivision or any agency, authority, board, bureau, central bank, commission,
department or instrumentality of either, or any court, tribunal, grand jury or
arbitrator, in each case whether foreign or domestic.

(gg)         “Overnight Fed Funds Open Rate” shall mean,
for any day, a fluctuating interest rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published for
such day (and, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York as posted on the page entitled “FED FUNDS OVERNIGHT
& TERM” on a Bloomberg Terminal, referenced in Exhibit A hereto or, if such rate is not so published for any
day that is a Business Day, the average of the quotations for such day on such
transactions received by the Bank from three federal funds brokers of
recognized standing selected by the Bank.

(hh)         “Overnight Fed Funds Rate Loan” shall mean any Loan that bears interest at the Overnight Fed
Funds Open Rate.

(ii)           “Permitted Liens”
shall mean any and all (i) Liens for Taxes, assessments or other governmental
charges or levies not at the time delinquent or thereafter payable without penalty;
(ii) Liens in favor of carriers, materialmen, warehousemen, mechanics,
landlords,

 

suppliers, lessors or other like Liens incurred in the ordinary course
of business for sums not overdue and Liens of landlords securing obligations to
pay lease payments that are not yet overdue or in default;(iii) 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; (iv) any Lien arising out of judgments or awards but only to the
extent that the creation of any such Lien shall not be an event or condition
which, with or without notice or lapse of time or both, would cause Borrower to
be in violation of Section 11(i); (v) security interests in favor of lessors of
personal property, which property is the subject of a true lease; (vi)
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;
(vii) 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; (viii) Liens on property leased by any Borrower or Subsidiary of
a Borrower securing obligations of such Borrower or Subsidiary to the lessor
under such leases, to the extent the payments or other amounts due and owing under
any such lease constitute Indebtedness; (ix) any Lien existing on the date of
this Agreement and described on Schedule A, provided, that, to the extent any such Lien
secures Indebtedness permitted hereunder, such Lien may continue to secure any
renewals or extensions of such Indebtedness permitted so long as (A) the
principal amount of the Indebtedness secured by any such Lien is not hereafter
increased and (B) no additional assets become subject to such Lien, such
Indebtedness is permitted; (x) Purchase Money Security Interests, provided,
that the aggregate amount of loans and deferred payments secured by such
Purchase Money Security Interests shall not exceed $20,000,000 (excluding for
the purpose of this computation any loans or deferred payments secured by Liens
described on Schedule A); (xi) the following, (A) if the validity or amount thereof is being
contested in good faith by appropriate and lawful proceedings diligently
conducted so long as levy and execution thereon have been stayed and continue to
be stayed or (B) if a final judgment is entered and such judgment is discharged
within thirty (30) days of entry, and could not be reasonably expected to
result in a Material Adverse Effect:  (1)
claims or Liens for Taxes due and payable and subject to interest or penalty,
provided that the applicable Borrower maintains such reserves or other
appropriate provisions as shall be required by GAAP and pays all such Taxes
forthwith upon the commencement of proceedings to foreclose any such Lien; (2)
claims, Liens or encumbrances upon, and defects of title to, real or personal
property, including any attachment of personal or real property or other legal
process prior to adjudication of a dispute on the merits; or (3) claims or
Liens of mechanics, materialmen, warehousemen, carriers, or other statutory
nonconsensual Liens; and (xii) any other Liens disclosed by the Borrowers to
the Bank and consented to in writing by the Bank.

(jj)           “Person”
shall mean any individual, sole proprietorship, corporation, partnership,
trust, unincorporated association, mutual company, joint stock company, trade
association or other business organization.

 

(kk)         “Post-Default Rate”
shall mean a rate of interest per annum equal to the Prime Rate as in effect
from time to time plus two percent (2%).

(ll)           “Prime Rate”
shall mean the rate of interest per annum publicly announced by the Bank from
time to time in the City of New York as its “prime rate”, which rate of
interest may not be the lowest or best rate of interest offered by the Bank at
any given time to any class of borrower.  Any
change in the Prime Rate shall result in an immediate corresponding change in
any rate of interest based on the Prime Rate.

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

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

(oo)         “SEC Filings”
shall mean NJRC’s Form 10-K, filed with the SEC for the fiscal year ended
September 30, 2005 and Forms 10-Q, the first filed with the SEC for the fiscal
quarter ended December 31, 2005, the second filed with SEC for the fiscal
quarter ended March 31, 2006 and the third filed with the SEC for the fiscal
quarter ended June 30, 2006.

(pp)         “Subsidiary”
shall mean, with respect to any Person, any other Person (i) the securities of
which having ordinary voting power to elect a majority of the board of
directors (or other persons having similar functions) or (ii) the other
ownership interests of which ordinarily constituting a majority voting
interest, are at the time, directly or indirectly, owned or controlled by such
first Person, or by one or more of its Subsidiaries, or by such first Person
and one or more of its Subsidiaries; unless otherwise specified, “Subsidiary”
means a Subsidiary of the Borrowers.

(qq)         “Tax” shall
mean any federal, state or foreign tax, assessment or other governmental charge
or levy (including withholding tax) upon a Person or upon its assets, revenues,
income or profits.

Section 2.             Terms
of the Credit.

(a)           Upon the terms and
conditions of this Agreement, and in reliance upon the representations and
warranties of the Borrowers set forth in Section 8 hereof, the Bank shall, from
time to time during the period from the Agreement Date to the Credit Facility
Termination Date, extend credit to the any of the Borrowers in the form of Loans (the “Credit
Facility”).  The sum of the aggregate
principal amounts of all outstanding Loans shall not at any time exceed Thirty Million
United States Dollars (U.S.$30,000,000.00) (the “Commitment”).  Within the foregoing limits, the Borrowers
may borrow Loans, repay Loans, prepay Loans (to the extent permitted under
Sections 3 hereof), and re-borrow Loans on or after the Agreement Date up to

 

the Business Day before the Credit Facility Termination Date, in
accordance with the terms hereof.

(b)           The Borrowers may
reduce the Commitment by giving the Bank notice (which shall be irrevocable)
thereof no later than 10:00 a.m. (New York time) on the fifth Business Day
before the requested date of such reduction.

(c)           Each Borrower acknowledges and agrees that each
Borrower shall be liable, on an conditional joint and several basis, for all of
Loans and other obligations hereunder, and further acknowledges and agrees that
Loans to any Borrower inure to the mutual benefit of all of the Borrowers and
that the Bank is relying on the unconditional joint and several liability of
the Borrowers in extending Loans hereunder.

Section 3.             The
Loans.

(a)           The Loans shall be
made in integral multiples of $500,000.00.

(b)           For each proposed
Loan, a Borrower shall give the Bank written notice of its proposal (which
notice shall be irrevocable) no later than 9:00 a.m. (New York time) on the disbursement date
for such Loan that is an Overnight Fed
Funds Rate Loan.  Each such notice shall specify (i) the
requested disbursement date of the proposed Loan, which disbursement date shall
be a Business Day, and (ii) the amount of such proposed Loan.  Such notice for the extension of a Loan shall
be (i) executed by purportedly duly authorized officers of such Borrower
and (ii) made by telecopier, or telex, to be confirmed in writing or by
telephone.  A Borrower
shall notify the Bank in writing of the names of their respective officers
authorized to request Loans on behalf of the Borrower and
shall provide the Bank with the specimen signatures of such officers.  The proceeds of each Loan shall be disbursed
by the Bank by crediting a Borrower’s designated account at ICAP Futures, L.L.C., until further written notice by
Borrower, with immediately
available funds or in such other manner as may be acceptable to the Borrower and the
Bank.  Subject to the terms and
conditions of this Agreement, if a Borrower shall properly and timely request a
Loan under this subsection 3(b), then the Bank shall disburse the proceeds of
such Loan no later than 12:00 p.m. (New York time) on the disbursement date
therefor.

(c)           Subject to Section 6
below, the Borrowers may, at any time and from time to time, prepay Loans in
whole or in part together with accrued interest, except that any partial
prepayment shall be in an aggregate principal amount of at least
$500,000.00.  A
Borrower shall give the Bank written notice of each prepayment no later than
12:00 noon (New York time), on the date of such prepayment.  Each written notice of prepayment shall
specify the date on which prepayment is to be made and the amount to be
prepaid.

(d)           The Borrowers shall
repay to the Bank on the Credit Facility Termination Date the aggregate
principal of Loans outstanding on such date.

 

Section 4.             Interest.

Unless an Event of Default is continuing, each Loan shall bear interest
on the outstanding principal amount thereof at the applicable Overnight Fed Funds Open Rate of interest plus 0.50%;
Interest so accrued on each Loan shall be due and payable in arrears to the Bank by the Borrowers on the Loan’s Interest Payment
Date(s).  Nothing contained in this
Agreement or in any other documentation for the Loans shall require the
Borrowers at any time to pay interest at a rate exceeding the Maximum
Permissible Rate.  If the interest
payable to the Bank on any date would exceed the maximum amount permitted by
the Maximum Permissible Rate, such interest payment shall be reduced
automatically to such maximum permitted amount, and interest for any subsequent
period, to the extent less than the maximum amount permitted for such period by
the Maximum Permissible Rate, shall be increased by the unpaid amount of such
reduction.  During an Event of Default,
each Loan (whether or not due) and, to the maximum extent permitted by
Applicable Law, each other amount due and payable hereunder shall bear interest
at the applicable Post-Default Rate, which interest shall be payable on
demand.  Interest payable under this
Agreement shall be calculated on the basis of a year of 360 days and paid on the
actual number of days elapsed.

Section 5.             Payments
by the Borrowers.

(a)           Time, Place and
Manner.  All payments due to the Bank
under this Agreement shall be made to the Bank at the Bank’s Office or at such
other address in the City of New York as the Bank may designate.  Except as otherwise specified in this
Agreement, a payment shall not be deemed to have been made on any day unless
such payment has been received at the required place of payment, in Dollars and
in funds immediately available, no later than 2:00 p.m. (New York time) on such
day.

(b)           No Reductions.  All payments due to the Bank under this
Agreement shall be made by each Borrower without any reduction or deduction
whatsoever, including any reduction or deduction for any set-off, recoupment,
counterclaim (whether sounding in tort, contract or otherwise) or Tax, except
for any withholding or deduction for Taxes required to be withheld or deducted
under Applicable Law.

(c)           Taxes.  If any Tax is required to be withheld or
deducted from, or is otherwise payable by the any Borrower
in connection with, any payment due to the Bank under this Agreement, such Borrower
(i) shall, if required, withhold or deduct the amount of such Tax from such
payment and, in any case, pay such Tax to the appropriate taxing authority in
accordance with Applicable Law and (ii) shall pay to the Bank such additional
amounts as may be necessary so that the net amount received by the Bank with
respect to such payment, after withholding or deducting all Taxes required to
be withheld or deducted, is equal to the full amount payable under this
Agreement. If any Tax is withheld or deducted from any payment due to the Bank
under this Agreement, such Borrower shall, within thirty (30) days after the date of such payment,
furnish to the Bank the original or a certified copy of a receipt for such Tax
from the applicable taxing authority.

 

(d)           Authorization to
Charge Accounts.  Each Borrower
hereby authorizes the Bank, if and to the extent any amount payable by any Borrower
under this Agreement is not otherwise paid when due, to charge such amount
against any or all of the accounts any Borrower maintains with any branch or office
of the Bank or its Affiliates (as if the Bank and its Affiliates were one and
the same entity), with the Borrowers remaining liable for any deficiency.

(e)           Extension of
Payment Dates.  Unless otherwise
provided herein, whenever any payment to the Bank under this Agreement shall be
due (otherwise than by reason of acceleration) on a day that is not a Business
Day, the date of payment thereof shall be extended to the next succeeding
Business Day.  If the date for any
payment under this Agreement is extended, such payment shall bear interest for
such extended time at the rate of interest applicable hereunder.

Section 6.             Loan
Prepayment and Funding Losses; Overnight
Fed Funds Open Rate Funding.

Anything in this Agreement to the contrary notwithstanding, if the Bank
determines (which determination shall be binding and conclusive) that
quotations of interest rates for the relevant deposits in the definition of Overnight Fed Funds Open Rate in Section 1 are not being provided in the
approximate relevant amounts or for the relevant maturities for purposes of
determining the rates of interest for Overnight
Fed Funds Rate Loans, then the
Bank shall give the Borrowers prompt notice thereof, and so long as such
condition remains in effect, the Bank shall be under no obligation to make any
Loans based on such definition, and the Bank and the Borrowers shall agree
forthwith to make Loans based on another mutually acceptable base rate.

Section 7.               Evidence
of Indebtedness.

(a)           The
Bank shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrowers to the Bank resulting from each Loan made by the Bank, including the amounts
of principal and interest payable and paid to the Bank from time to time.  (b) The Bank shall maintain
accounts in which it shall record (i) the amount of each Loan made hereunder,
(ii) the amount of any principal or interest due and payable or to become due
and payable from each Borrower to the Bank hereunder and (iii) the amount of any sum received by the Bank
hereunder for the account of the Banks.

(c)           The entries made in the accounts maintained
pursuant to subsections (a) and (b) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided
that any failure by the Bank to maintain such accounts or any error therein shall not affect
the Borrowers obligation to repay the Loans in accordance with the terms of
this Agreement.

 

(d)           The Bank may request that Loans made by it be
evidenced by a promissory note.  In such
event, the Borrowers shall prepare, execute and deliver to such Bank a promissory note
payable to the order of the Bank (or, if requested by the Bank,
to the
Bank and its registered assigns) and in a form approved by the Bank.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times be represented by one
or more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and
its registered assigns).

Section 8.             Representations
and Warranties of the Borrowers.

In order to induce the Bank to enter into this Agreement and to extend
the Credit Facility to the Borrowers, each Borrower hereby represents and
warrants the following to the Bank as of the Agreement Date:

(a)           Each Borrower
(i) is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its creation, (ii) has all requisite organizational
power, authority and legal right to conduct its business as now conducted and
as contemplated by its certificate of incorporation and by-laws, to make
borrowings hereunder, to execute, deliver and perform this Agreement and to
consummate the transactions contemplated hereunder and thereunder, and (iii) is
duly qualified to do business and is in good standing in each jurisdiction in
which the character of the properties owned or leased by it or in which the
transaction of its business makes such qualifications necessary, except that
this Section (a)(iii) shall not apply to qualifications the lack of which,
singly or in the aggregate, has not had and will not have a Materially Adverse
Effect on each Borrower.

(b)           Each Borrower
is not in violation of its by-laws or certificate of incorporation or in
default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any material contract, indenture, mortgage,
loan agreement or lease to which each Borrower is a party or by which it may be
bound.  The execution and delivery of any
of this Agreement and the incurrence of the obligations and the consummation of
the transactions herein and therein contemplated will not conflict with, or
constitute a breach of or default under, certificate of incorporation or
by-laws of each Borrower or any material contractual restriction, instrument,
indenture, mortgage, agreement or lease to which each Borrower is a party or by which it may be
bound, or any law, administrative rule or regulation or court decree.

(c)           This Agreement has
been duly authorized, executed and delivered by the Borrowers, and constitutes
a legal, valid and binding obligation of the Borrowers enforceable in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally or by general
principles of equity.

 

(d)           No consent,
approval, authorization, order, registration or qualification of or with any
court, any regulatory authority or other governmental agency or body is
required for the execution or delivery of this Agreement by each Borrower
or for the consummation of the transactions contemplated by this Agreement.

(e)           No Default has
occurred and is continuing.

(f)            Except as set forth in the SEC
Filings, there are no actions, suits, proceedings or investigations pending or,
to the knowledge of any of the Borrower, threatened against such Borrower
before any court, tribunal, governmental authority or any body or Person with
judicial or quasi-judicial authority which has a significant possibility of
having a Materially Adverse Effect on any of the Borrowers or its ability
to perform under this Agreement.

(g)           Each Borrower
has filed or caused to be filed all Tax returns required to have been filed and
has paid all Taxes shown to be due and payable on such returns or on any
assessments made against them (other than those being contested in good faith)
and, to the best of each Borrower’s knowledge, no Tax Liens have been filed and no claims are
being asserted with respect to such Taxes which are not reflected in the
financial statements referred to in Section 10(c) hereof, which, if adversely determined,
would, in the aggregate, have a Materially Adverse Effect on the value of the
total enterprise represented by any of the Borrowers.

(h)           No Borrower
is an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

(i)            Each Borrower
is currently
in compliance with all Applicable Laws (including, without limitation, ERISA
and Environmental Laws), the non-compliance with which would have a Materially
Adverse Effect on any Borrower under this Agreement.

(j)            No fact or
circumstance, to the best of each Borrower’s present knowledge, either alone or in
conjunction with all other such facts and circumstances, has had or might in
the future have (so far as each Borrower can foresee) a Materially Adverse
Effect on any Borrower under this Agreement.

Section 9.             Conditions
Precedent.

(a)           The obligation of
the Bank to enter into this Credit Agreement and make the initial Loan is
subject to satisfaction of the following conditions:

(i)                                     receipt by the
Bank in form and substance satisfactory to the Bank of evidence of each Borrower’s authority to
borrow from the Bank in the form of executed approval of its Board of
Directors;

(ii)                                  receipt by the Bank in form and substance
satisfactory to the Bank of duly executed originals of this Agreement;

 

(iii)                               receipt by the Bank in form and substance
satisfactory to the Bank of a secretary’s certificate as to the signature and
incumbency of the officers of each Borrower executing this Agreement;

(iv)                              receipt by the Bank in form and substance
satisfactory to the Bank of certified copies of the each Borrower’s
certificate of incorporation and by-laws, together with any amendments thereto.

(b)           The making of each
Loan (including the initial Loan) shall be subject to the Bank’s reasonable
determination that each of the following conditions has been fulfilled:  (i) the Bank shall have received a notice of
borrowing prepared and delivered in accordance with the terms of Section 3
hereof;  (ii) the Bank shall have
received all applicable documents, information and other items required by this
Agreement;  (iii) each representation and
warranty contained in Section 8 hereof shall be true and correct at and as of
the date any Loan is made (except representations and warranties which
expressly 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); (iv) no Default shall have occurred and be continuing at
the time any Loan is to be made; and (v) such Loan shall not contravene any
Applicable Law applicable to the Bank.

Section 10.             Covenants
of the Borrowers.

From the date hereof and until the Credit Facility shall have been terminated or have expired and all amounts due
hereunder are paid in full:

(a)
          Each Borrower shall not
consolidate with, merge into, or acquire, any other Person or permit any other
Person to consolidate with, merge into, or acquire, it without the prior
written consent of the Bank unless (i) any Borrower is the surviving entity, (ii) such Borrower provides the Bank
with at least 30 days prior written notice of any such consolidation, merger or
acquisition, (iii) based on projections and financial statements prepared in
accordance with the accounting standards generally employed in the preparation
of  each Borrowers  financial reports and such other information
as the Bank may reasonably request, any such consolidation, merger or
acquisition will result in a surviving entity having a “Net Worth” that is
equal to or greater than the Net Worth of the  such  Borrower immediately prior
to such consolidation, merger or acquisition and (iv) said surviving entity
shall fully assume liability for the performance of all obligations under this
Agreement.  For the purposes of this
Agreement, “Net Worth” shall mean stockholders’ equity as determined in
accordance with the accounting standards generally employed in the preparation
of a Borrower’s financial
reports.

(b)           The
Borrowers will not sell, lease, transfer or otherwise dispose of any of its
assets, except that this Section 10(b) shall not apply to (i) any disposition of
assets, including, but not limited to, the sale of inventory, in the ordinary
course of business; (ii) any sale, transfer, lease or other disposition of
assets which are no longer necessary or required in the conduct of Borrowers’
business as currently conducted or any disposition of obsolete or retired
property not

 

useful to the Borrowers; (iii)
any sale, transfer or lease of assets in the ordinary course of business which
are replaced by substitute assets acquired or leased; or (iv) any sale,
transfer or lease of assets, other than those specifically excepted pursuant to
clauses (i) through (iii) above, provided that (A) at the time of any
disposition, no Event of Default shall exist or shall result from such
disposition, and (B) the aggregate net book value of all assets so sold by the Borrowers shall not exceed
in any fiscal year five (5%) of the consolidated total assets of the Borrowers as determined on a
consolidated basis in accordance with GAAP.

(c)             (i)
NJRC shall submit to the Bank, in reasonable detail
and within ninety (90) days
following the close of each fiscal year of NJRC (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), certified copies of the complete annual
financial statements of NJRC and its consolidated Subsidiaries,
including, but not limited to, the balance sheet and profit and loss statement
for such fiscal year including statements of income, retained earnings and cash
flows of NJRC for such annual period.  The Borrowers will be deemed
to have complied with the delivery requirements of this Section 10(c)(i) if
within ninety (90) days 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 Borrowers deliver to the Bank
a copy of its Annual Report and 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.

(ii) NJRC shall submit to the Bank, in reasonable detail and as soon as
available and in any event within forty five (45) days after the close of each fiscal quarter
of NJRC (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), copies of the
complete financial statements of NJRC and its consolidated Subsidiaries, including,
but not limited to, the balance sheet and profit and loss statement for such
periods including statements of income, retained earnings and cash flows of NJRC
for such quarterly period.  The Borrowers
will be deemed to have complied with the delivery requirements of this Section
10(c)(ii) 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), the Borrowers
deliver to the Bank 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.

(iii) Such financial reports shall be prepared in accordance with GAAP
applied consistently to all applicable periods, shall present fairly the
financial condition of NJRC and its consolidated Subsidiaries and shall
be accompanied by a certificate of a duly authorized officer of NJRC
stating that he has made or caused to be made a review of NJRC’s
transactions and condition during the relevant period of NJRC
covered by such financial reports and that such review has not disclosed the
existence of any event or condition which constitutes a Default or, if any such
condition existed or exists, the nature thereof and the action the Borrowers
has taken or proposes to take with respect thereto.

 

(iv) Each Borrower shall submit to the Bank, in reasonable detail and
as soon as available, such further information regarding the condition or operations,
financial or otherwise, of each Borrower and its Subsidiaries, as the Bank from
may time to time reasonably request, provided that such request shall be in
connection with required reporting by the Bank to a regulatory agency.

(d)           Each Borrower
shall (i) preserve and maintain its existence and all of its franchises,
licenses, rights and privileges required for the conduct of business, (ii) preserve and maintain insurance with responsible insurance companies against at
least such risks and in at least such amounts as it customarily maintained by
similar businesses, or as may be required by Applicable Law, (iii)
preserve, protect and obtain all intellectual property, and preserve and
maintain in good repair, working order and condition all other properties,
required for the conduct of its business, (iv) not make any changes in its business
activities that have a Materially Adverse Effect on each  Borrower (except as otherwise permitted under
this Agreement), (v) comply in all material respects with all Applicable Law
(including ERISA and Environmental Laws), (vi) pay or discharge when due all Taxes and all
Indebtedness that can be reasonably expected to become a Lien on any of its
properties, except to the extent that any such Lien is contested in good faith
by such Borrower
in proper proceedings promptly instituted and diligently pursued to the
reasonable satisfaction of the Bank and that such Borrower shall maintain adequate reserves for
the satisfaction of such Lien in accordance with generally accepted accounting
principles,  (vii) not create, assume or incur, or permit or suffer
to exist or to be created, assumed or incurred, any Lien (except a Permitted
Lien) upon any of its properties or assets of any character, whether now owned
or hereafter acquired, or upon any income or profits therefrom, and
(viii)
take all action and obtain all consents and Governmental Approvals required so
that its obligations hereunder will at all times be legal, valid and binding
and enforceable in accordance with their respective terms.

(e)           If any law,
guideline or interpretation or any change in any law, guideline or
interpretation or application thereof by any Official Body charged with the
interpretation or administration thereof or compliance with any request or
directive (whether or not having the force of law) of any central bank or other
Official Body:

(i)                                     subjects the
Bank to any tax or changes the basis of taxation with respect to this
Agreement, the Loans or payments by any Borrower of principal, interest or
other amounts due from the Borrowers hereunder (except for taxes on the overall
net income of the Bank),

(ii)                                  imposes, modifies or deems applicable any reserve,
special deposit or similar requirement against credits or commitments to extend
credit extended by, or assets (funded or contingent) of deposits with or for
the account of, or other acquisitions of funds by, the Bank or any lending
office of the Bank, or

 

(iii)                               imposes, modifies or deems applicable any capital
adequacy or similar requirement (A) against assets (funded or contingent) of,
other credits or commitments to extend credit extended by, the Bank, or (B)
otherwise applicable to the obligations of the Bank or any lending office of
the Bank under this Agreement,

and the
result of any of the foregoing is to increase the cost to, reduce the income
receivable by, or impose any expense (including loss of margin) upon the Bank
or any lending office of the Bank with respect to this Agreement or the making,
maintenance or funding of any part of the Loans (or, in the case of any capital
adequacy or similar requirement, to have the effect of reducing the rate of
return on the Bank’s capital, taking into consideration the Bank’s customary
policies with respect to capital adequacy) by an amount which the Bank, in its
reasonable discretion, deems to be material, the Bank shall from time to time
notify the Borrowers of the amount determined in good faith (using any
averaging and attribution methods employed in good faith) by the Bank to be
necessary to compensate the Bank for such increase in cost, reduction in
income, additional expense or reduced rate of return.  Such notice shall set forth in reasonable
detail the basis for such determination and shall, in the absence of manifest
error, be presumed to be correct and binding for all purposes.  Such amount shall be due and payable by the
Borrowers within thirty (30) Business Days after written demand by the Bank.

(f)            Each Borrower covenants
and agrees that this Agreement will at all times constitute direct, binding and
enforceable obligations of the Borrowers.

(g)           Promptly upon
becoming aware of the existence of any condition or event which could have a
Materially Adverse Effect on, or constitute a default or Default under, this
Agreement, the Borrowers will provide written notice to the Bank specifying the
nature and period of existence thereof and the action the Borrowers is taking
or propose(s) to take with respect thereto.

(h)           The Borrowers shall
use the proceeds of the Loans only for general corporate purposes including
working fund of the Borrowers. None of the proceeds of the Loans shall be used
to purchase or carry, or to reduce, retire or refinance any credit incurred to
purchase or carry, any margin stock (within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System) or to extend credit to others
for the purpose of purchasing or carrying any margin stock.

(i)            Each Borrower shall ensure that at all times the
obligations of the Borrowers hereunder shall constitute unconditional general
obligations of the Borrowers ranking in priority of payment at least pari
passu with all other unsecured and unsubordinated indebtedness of the
Borrowers.

(j)            NJRC
shall not and shall not permit any Subsidiary of NJRC to change its fiscal year
from the twelve-month period beginning October 1 and ending September 30.

 

(k)           Each
Borrower shall not at any time permit the ratio of Consolidated Total
Indebtedness of the NJRC and its Subsidiaries to Consolidated Total
Capitalization to exceed 0.65 to 1.00.

(l)            Each
Borrower shall not permit the ratio of Consolidated Income from Operations to
Consolidated Interest Expense of NJRC and its Subsidiaries, calculated as of
the end of each fiscal quarter for the four fiscal quarters then ended, to be
less than 2.50 to 1.00.

(m)          NJRC
shall submit to the
Bank, in form and substance satisfactory to the Bank, at the time of delivery
of the financial statements provided for in Section 10
(c) above, a certificate of an officer of NJRC,
demonstrating compliance with Sections 10(k) and 10(l)
hereof as of the close of each fiscal year of
NJRC.

Section 11.             Events
of Default.

If any of the following events (each individually referred to herein as
an “Event of Default”) shall occur:

(a)           any Borrower
shall fail to pay in full in the manner provided herein (i) any
principal due hereunder, or  (ii) any interest
or other amount due hereunder within three (3) Business Days after such
interest, fee, or other amount becomes due in accordance with the terms hereof;
or

(b)           any Borrower
shall fail to perform, comply with or observe any of its obligations under any
of Sections 10(a), 10(b), 10(f), 10(g), 10(h),
10(i), 10(j), 10(k), or 10(l) of
this Agreement; or

(c)           any Borrower shall fail to perform any of its
other obligations under this Agreement and such failure shall not be remedied
within thirty (30) Business Days after the occurrence thereof;  or

(d)           any representation
or warranty of any Borrower contained herein or in any certificate or document furnished
to the Bank shall prove to be incorrect or misleading in any material respect
when made;  or

(e)           a judicial order
shall be made, or an effective resolution passed by the Board of the applicable
Borrower, for the winding up of any Borrower, or any Borrower, or any Borrower shall cease to conduct its
business in the manner conducted as of the date hereof, or any Borrower
shall take any steps whatsoever to effect, approve or facilitate any of the
foregoing in any way, except as expressly permitted under the terms of this
Agreement; or

 

(f)            any Borrower:  (i) shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as such debts
mature;  or (ii) shall make an assignment
for the benefit of its creditors;  (iii)
shall petition or apply to any tribunal or other body for the appointment of a
custodian, receiver, trustee or the like for it or for a substantial part of
its assets, whether domestic or foreign; (iv) shall commence any proceeding
under any bankruptcy, reorganization, arrangement, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect and whether domestic, international or foreign;  (v) shall have had any such petition or
application filed or any such proceeding shall have been commenced against it,
in which an adjudication or appointment is made or order for relief is entered,
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; (vi) shall be the subject
of any proceeding under which a material portion of its assets may be subject
to seizure, forfeiture, or divestiture, 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; (vii) by any act or omission shall indicate its
consent to, approval of, or acquiescence in, any such petition, application,
proceeding, order for relief, or appointment of a custodian, receiver, trustee
or the like; (viii) shall suffer any such custodianship, receivership,
trusteeship, or comparable status and such appointment shall remain undismissed
or unstayed and in effect for a period of sixty (60) consecutive days; (ix)
shall take any corporate, partnership or other action whatsoever to approve,
facilitate or effectuate any of the foregoing in any way; or

(g)           any authorization,
consent, approval, registration or license now or hereafter necessary to enable
the Borrowers to comply with its material obligations hereunder shall expire,
be revoked, be withheld or otherwise be ineffective and such expiration,
revocation or other ineffectiveness shall continue unremedied for a period of
thirty (30) Business Days after an
Authorized Officer becomes aware of the occurrence thereof;

(h)           (i) either any Borrower
or any
Subsidiary of the Borrowers shall fail to pay when due and payable (whether at
maturity, by acceleration or otherwise, beyond any grace period with respect
thereto, whether waived or not) any principal, premium or interest on any
Indebtedness and any such failure(s) to pay shall in the aggregate exceed
$10,000,000; or (ii) the maturity of any such Indebtedness exceeding
$10,000,000 in aggregate shall have been accelerated or have been required to
be prepaid prior to the stated maturity date thereof in accordance with the
terms of any agreement or instrument evidencing, providing for the creation of,
or concerning, such Indebtedness; or

(i)            any final judgments
or orders for the payment of money in excess of $10,000,000 in the aggregate
shall be entered against any Borrower, or any Subsidiary of the Borrowers, and such judgments, or orders  are not
discharged, vacated, bonded or stayed pending appeal within a period of thirty (30)
days from the date of entry provided, however
that any such judgment or order shall not been an Event of Default under this
Section 11(i) if and so long as (i) the amount of such judgment or order is
covered by a valid and binding policy of insurance between the defendant and
the insurer covering payment thereof and (ii) such insurer, which

 

shall be
rated at least “A” by A.M Best Company, has been notified of, and has not disputed
the claim made for payment of, the amount of such judgment or order  ;

(j)            any Borrower
shall fail to perform under any agreement, lease, mortgage, indenture or other
contractual arrangement between any Borrower and the Bank or any of its
Affiliates such that an amount in excess of $5,000,000 shall remain outstanding
past the date on which it was due and payable; or

(k)           NJRC shall fail to own, either directly or indirectly and free of any
Liens, 100% of the capital stock of the NJRESC;

THEREUPON, the Bank may, in addition to enforcing all other rights and
remedies available to it under Applicable Law or any contract, agreement or
instrument, (i) upon notice to the Borrowers, declare the Bank’s agreement to
make Loans hereunder to be terminated, whereupon the same shall forthwith
terminate, and (ii) upon notice to the Borrowers declare all amounts, if any,
not otherwise immediately due under this Agreement or in respect of any Loan to
be, and all such amounts shall thereupon become, due and payable to the
Bank.  Upon the occurrence of an Event of
Default specified in Section 11(e) or 11(f), automatically and without any
notice to the Borrowers, the agreements of the Bank to make Loans hereunder
shall be terminated and all amounts, if any, not otherwise immediately due
under this Agreement or in respect of any Loan shall be immediately due and
payable to the Bank.  Presentment,
demand, protest or notice of any kind (other than the notice provided for in
the immediately preceding sentence) are expressly waived, anything in this
Agreement to the contrary notwithstanding. 
Upon the occurrence of an Event of Default, the Bank shall also have the
right to terminate in its sole discretion any and all related swap, swaption,
option, cap, collar and other derivative product arrangements of any kind
entered into by the Bank in order to provide funding under this Agreement.

Section 12.             Illegality.

If, after the date of this Agreement, the adoption of any Applicable
Law, any change therein or any change in the interpretation or administration
thereof by any government, governmental agency or authority, court, tribunal,
central bank or other comparable body charged with the interpretation or
administration thereof or compliance by the Bank with any subsequently adopted
interpretation, request, guideline or directive (whether or not having the
force of law) of any such government, governmental agency or authority, court,
tribunal, central bank or other comparable body shall make it unlawful or
impossible for the Bank to maintain this Agreement or any Loan, then the Bank
shall so notify the Borrowers and no Loans not permitted under Applicable Law
shall be made and all outstanding Loans not permitted under Applicable Law
shall become due and payable, without premium or penalty, upon the Borrowers’
receipt of such notice (or on such earlier or later date as may be required by
such Applicable Law, interpretation, guideline, request or directive).  Notwithstanding any provision to the contrary
set forth in this Section, to the extent permitted under Applicable Law, Loans
so

 

accelerated shall first be converted to Loans bearing interest based on
a different rate available hereunder.

Section 13.             Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to conflicts of law
principles.  Each Borrower
irrevocably agrees that any Credit Agreement Related Claim may be brought in
any Federal or New York State Court located in the City of New York and, by the
execution and delivery of this Agreement, each Borrower hereby irrevocably accepts and
submits to the jurisdiction of each of the aforesaid courts in personam,
generally and unconditionally, with respect to any such action or proceedings
for itself and in respect of its property, assets and revenues.  Each Borrower hereby also irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or
hereafter have to the laying of venue of any such action or proceeding brought
in any such court and any claim that any such action or proceeding brought in
such court has been brought in an inconvenient forum.  Each Borrower further irrevocably consents to
service of process out of said courts by mailing a copy thereof, by registered
or certified mail, postage prepaid, to itself, and irrevocably waives, to the
fullest extent permitted by law, all claim of error by reason of such service
in any legal action or proceeding brought in accordance herewith.  Each Borrower irrevocably waives, in any legal
action or proceeding in any jurisdiction (whether for an injunction, specific
performance, damages or otherwise), any right or claim of immunity of any kind
with respect to itself or its assets including, without limitation, from
attachment or execution of judgment, and 
each Borrower irrevocably agrees that it and its assets are and shall be
subject to any legal action or proceeding, attachment or execution in respect
to its obligations under this Agreement. 
Each Borrower hereby irrevocably agrees that the Bank shall not be liable
for, and each Borrower waives and agrees not to seek any special, indirect or
consequential damages arising out of any claim related to this Agreement.  EACH BORROWER AND THE BANK EACH HEREBY WAIVE TRIAL
BY JURY IN ANY JUDICIAL PROCEEDING TO WHICH THEY ARE BOTH PARTIES INVOLVING ANY
CREDIT AGREEMENT RELATED CLAIM.

Section 14.             Miscellaneous.

(a)           Each Borrower shall, on demand, pay or reimburse
the Bank for all fees, costs and expenses (including reasonable fees and
disbursements of legal counsel and other experts employed or retained by the
Bank) incurred, and all payments made, and indemnify and hold the Bank harmless
from and against all losses suffered, by the Bank in connection with, arising
out of, or in any way related to (i) consulting with respect to any matter in
any way arising out of, related to, or connected with this Agreement including (A) the protection, preservation, exercise or enforcement by
the Bank of any of its rights under or related to this Agreement or (B) the performance by the Bank of any of its obligations under or
related to this Agreement, (ii) protecting, preserving, exercising or
enforcing any of the rights of the Bank under or related to this Agreement, (iii) any Credit Agreement Related Claim (whether asserted by the
Bank or any Borrower or any other Person and whether asserted before or after the date

 

hereof), and the
prosecution or defense thereof, or (iv) any governmental investigation arising
out of, related to, or in any way connected with this
Agreement or the relationship
established hereunder, except that the foregoing indemnity shall not be
applicable to any loss suffered by the Bank to the extent such loss is
determined by a judgment of a court referred to in the second sentence Section
13
hereof that is binding on the Borrowers and the Bank, final and not subject to
review on appeal, to be the result of acts or omissions on the part of the Bank, constituting (x) willful misconduct or (y) gross
negligence

(b)           Unless otherwise
provided herein, any notice or communication required to be delivered under
this Agreement, or any agreement or instrument required to be delivered
hereunder (the “Notices”) shall be in writing and shall be sent by registered
or certified U.S. mail (postage prepaid and return receipt requested), by a
reliable hand-delivery or overnight courier service or by telecopier, to
be confirmed immediately by sending the original documentation by registered or
certified U.S. mail or by a reliable hand-delivery or overnight courier
service.  Notwithstanding the foregoing
sentence, Notices may be given by telephone if confirmed in writing within
twenty-four (24) hours by sending a written version thereof by a reliable
hand-delivery or overnight courier service.  In the event of a discrepancy between any
telephonic Notice and any written confirmation thereof, such written
confirmation shall be deemed effective notice except to the extent that the
Bank has acted in reliance on such telephonic Notice.  All Notices shall be delivered or otherwise
conveyed to the parties at their respective addresses and telephone and
telecopier numbers as follows:  (i) if to
the Borrowers, at NEW JERSEY RESOURCES CORPORATION, 1415 Wyckoff Road, Wall, New Jersey 07719, Attn. Mr. Glenn C.
Lockwood; Telephone: 732-938-1482; Facsimile: 732-905-4328; and, at NJR ENERGY SERVICES COMPANY, 1415
Wyckoff Road, Wall, New Jersey 07719, Attn. Mr. Dennis Veltre; Telephone: 732-938-4541; Facsimile:732-919-8118; (ii) if to the Bank, at Bank of
Tokyo-Mitsubishi UFJ Trust Company, 1251 Avenue of the Americas, 12th Floor,
New York, New York 10020-1104, Attention: Ms. Mary Coseo, Portfolio Management Group, Telephone:
(212) 782-6932, Telecopier:  (212) 782-6440, and Mr. Henry Clivilles, Loan Transaction
Department, Telephone: (212) 782-4315,
Telecopier:  (212) 782-6441.  Except as otherwise expressly set forth
herein, all Notices shall be effective as against the Bank only upon the
receipt thereof.

(c)           No modification or waiver
of any provision of this Agreement, or any other instrument or agreement
required hereunder, and no consent to any departure by the Borrowers therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the parties hereto, and then in each such event such waiver or consent shall
be effective only in the specific instance and for the purpose for which
given.  No notice to or demand on the
Borrowers in any case shall, of itself, entitle the Borrowers to any other or
further notice or demand in similar or other circumstances.

(d)           The terms and
provisions of this Agreement shall be binding upon, and the benefits thereof
shall inure to, the parties hereto and their respective successors and assigns;
provided,  however, that any Borrower shall not assign any interest in
this Agreement or any of

 

the Borrower’s rights, duties, or obligations hereunder or thereunder
without the prior written consent of the Bank.

(e)           No delay or omission
to exercise any right, power, or remedy accruing to the Bank upon any breach or
default of any Borrower under this Agreement or any instrument or agreement required
hereunder shall impair any such right, power, or remedy of the Bank, nor shall
it be considered to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter
occurring; and no waiver by the Bank of any single breach or default shall be
deemed a waiver of any other breach or default theretofore and thereafter
occurring.  Any waiver, permit, consent,
or approval of any kind or character on the part of the Bank of any breach or
default under this Agreement or any waiver on the part of the Bank of any
provision or condition of this Agreement must be in writing specifically set forth.  No remedy herein conferred upon the Bank is
intended to be exclusive of any other remedy and each and every such remedy
either under this Agreement or by law or otherwise afforded to the Bank, shall
be cumulative and not alternative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or otherwise.

(f)            Nothing in this
Agreement shall be deemed a waiver or prohibition of the Bank’s rights of
banker’s lien or setoff.

(g)           This Agreement may
be executed in any number of counterparts and on separate counterparts, each of
which shall be deemed to be an original and but all of which taken together
shall constitute one and the same Agreement.

(h)           The Bank may assign,
pledge or otherwise transfer any or all of its interests, rights, and/or
obligations in, or arising under this Agreement, the Commitment, the Loans and
may grant or assign to any person in this Agreement, the Commitment, the Loans
with consent from the Borrower, which consent shall not be unreasonably withheld;
provided that no such consent is required if (i) an Event of Default exists and is
continuing; or (ii) such assignment is to an Affiliate of the Bank with the
financial capability and wherewithal to carry out the obligations of the Bank
hereunder.    Notwithstanding any other provision in this
Agreement, the Bank may at any time create a security interest in, or pledge,
all or any portion of its rights under and interest in this Agreement and any
Term Loan Note held by it in favor of any Federal Reserve Bank in accordance
with Regulation A of the FRB or U.S. Treasury Regulation 31 CFR §203.14, and
such Federal Reserve Bank may enforce such security interest or pledge in any
manner permitted under applicable law.

(i)            Unless otherwise
specified herein, all accounting determinations hereunder and all computations
utilized by the Borrowers in complying with terms used herein shall be
interpreted, and all financial statements required to be delivered hereunder
shall be prepared, in accordance with the accounting principles set forth in
the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board.

 

(j)            The
Bank hereby notifies the Borrowers that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it is required to obtain, verify and record information that
identifies the Borrowers, which information includes the name and address of
the Borrowers and other information that will allow the Bank to identify the
Borrowers in accordance with the Act.

(k)           The term “Borrowers” as used in this
Agreement shall, unless otherwise specified in this Agreement, mean the “Borrowers
and each of them” and each undertaking and obligation of the Borrowers
contained in this Agreement and any other loan documents to which both of the
Borrowers are parties shall be their joint and several undertakings and
obligations. The Bank may proceed under this Agreement or any other loan
documents against either or both of the Borrowers at one time or from time to
time, in the sole discretion of the Bank.

[No further
text appears on this page]

 

IN WITNESS WHEREOF, each Borrower and the Bank, acting through their duly
authorized representatives, have caused this Credit Agreement to be duly
executed in duplicate counterparts in the English language and signed in their
respective names the day and year first above written.

	
  

  	
   

  	
  NEW JERSEY RESOURCES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  NJR ENERGY SERVICES COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  BANK OF TOKYO-MITSUBISHI UFJ TRUST

  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]