Document:

Exhibit 10.24

     

    Ex.
      10.24

    

     

     

    CREDIT
      AGREEMENT

     

    among

     

    VECTREN
      UTILITY HOLDINGS, INC.,

    as
      Borrower,

     

    INDIANA
      GAS COMPANY, INC.,

    as
      Guarantor,

     

    SOUTHERN
      INDIANA GAS AND ELECTRIC COMPANY,

    as
      Guarantor,

     

    VECTREN
      ENERGY DELIVERY OF OHIO, INC.,

    as
      Guarantor,

     

    THE
      LENDERS SIGNATORY HERETO,

     

    MIZUHO
      CORPORATE BANK, LTD.,

     

    UNION
      BANK OF CALIFORNIA, N.A. and

     

    WACHOVIA
      BANK, N.A.,

     

    as
      Co-Documentation Agents

     

    LASALLE
      BANK NATIONAL ASSOCIATION,

    as
      Syndication Agent

     

    and

     

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Administrative Agent

     

     

    Dated
      as
      of November 10, 2005

     

    J.P.
      MORGAN SECURITIES, INC.

    and

    LASALLE
      BANK NATIONAL ASSOCIATION

    JOINT
      LEAD ARRANGERS AND BOOK RUNNERS

     

    

     

    
      
        
          
            	
                    13285046
                      01789880

                  	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ARTICLE
      IDEFINITIONS1

     

    ARTICLE
      IITHE
      CREDITS12

     

    2.1Commitments12

     

    2.2Required
      Payments; Clean-Down; Termination12

     

    2.3Ratable
      Loans12

     

    2.4Types
      of
      Advances12

     

    2.5Facility
      Fee; Changes in Aggregate Commitment12

     

    2.6Minimum
      Amount of Each Advance13

     

    2.7Optional
      Principal Payments13

     

    2.8Method
      of
      Selecting Types and Interest Periods for New Advances14

     

    2.9Conversion
      and Continuation of Outstanding Advances14

     

    2.10Changes
      in Interest Rate, etc15

     

    2.11Rates
      Applicable After Default15

     

    2.12Method
      of
      Payment15

     

    2.13Notes;
      Telephonic Notices16

     

    2.14Interest
      Payment Dates; Interest and Fee Basis16

     

    2.15Notification
      of Advances, Interest Rates, Prepayments and Commitment Reductions16

     

    2.16Lending
      Installations17

     

    2.17Non-Receipt
      of Funds by the Administrative Agent17

     

    2.18Use
      of
      Proceeds17

     

    2.19Facility
      LCs17

     

    2.20Extension
      of Facility Termination Date22

     

    ARTICLE
      IIIYIELD
      PROTECTION; TAXES23

     

    3.1Yield
      Protection23

     

    3.2Changes
      in Capital Adequacy Regulations23

     

    3.3Availability
      of Types of Advances24

     

    3.4Funding
      Indemnification24

     

    3.5Taxes24

     

    3.6Lender
      Statements; Survival of Indemnity26

     

    3.7Replacement
      of Lenders27

     

    ARTICLE
      IVCONDITIONS
      PRECEDENT27

     

    4.1Initial
      Credit Extension27

     

    4.2Each
      Credit Extension28

     

    ARTICLE
      VREPRESENTATIONS
      AND WARRANTIES29

     

    5.1Existence
      and Standing29

     

    5.2Authorization
      and Validity29

     

    5.3No Conflict;
      Government Consent29

     

    5.4Financial
      Statements29

     

    5.5Material
      Adverse Change30

     

    5.6Taxes30

     

    5.7Litigation
      and Contingent Obligations30

     

    5.8Subsidiaries30

     

    5.9ERISA30

     

    5.10Accuracy
      of Information31

     

    5.11Regulation
      U31

     

    5.12Material
      Agreements31

     

    5.13Compliance
      With Laws31

     

    5.14Ownership
      of Properties31

     

    5.15Plan
      Assets; Prohibited Transactions31

     

    5.16Environmental
      Matters31

     

    5.17Investment
      Company Act32

     

    5.18Insurance32

     

    5.19Solvency32

     

    5.20Public
      Utility Holding Company Act32

     

    5.21Existing
      Credit Agreement33

     

    5.22Reportable
      Transaction33

     

    ARTICLE
      VICOVENANTS33

     

    6.1Financial
      Reporting33

     

    6.2Use
      of
      Proceeds34

     

    6.3Notice
      of
      Default34

     

    6.4Conduct
      of Business35

     

    6.5Taxes35

     

    6.6Insurance35

     

    6.7Compliance
      with Laws35

     

    6.8Maintenance
      of Properties35

     

    6.9Inspection36

     

    6.10Merger36

     

    6.11Sale
      of
      Assets36

     

    6.12Investments
      and Acquisitions36

     

    6.13Liens37

     

    6.14Affiliates38

     

    6.15Leverage
      Ratio38

     

    6.16Certain
      Restrictions38

     

    ARTICLE
      VIIDEFAULTS39

     

    ARTICLE
      VIIIACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES41

     

    8.1Acceleration;
      Facility LC Collateral Account41

     

    8.2Remedies
      Not Exclusive42

     

    8.3Amendments42

     

    8.4Preservation
      of Rights43

     

    ARTICLE
      IXGENERAL
      PROVISIONS43

     

    9.1Survival
      of Representations43

     

    9.2Governmental
      Regulation43

     

    9.3Headings43

     

    9.4Entire
      Agreement43

     

    9.5Several
      Obligations; Benefits of this Agreement43

     

    9.6Expenses;
      Indemnification44

     

    9.7Numbers
      of Documents44

     

    9.8Accounting44

     

    9.9Severability
      of Provisions45

     

    9.10Nonliability
      of Lenders45

     

    9.11Confidentiality45

     

    9.12Nonreliance46

     

    9.13Disclosure46

     

    9.14USA
      PATRIOT ACT NOTIFICATION46

     

    ARTICLE
      XTHE
      ADMINISTRATIVE AGENT47

     

    10.1Appointment;
      Nature of Relationship47

     

    10.2Powers47

     

    10.3General
      Immunity47

     

    10.4No Responsibility
      for Loans, Recitals, etc47

     

    10.5Action
      on
      Instructions of Lenders48

     

    10.6Employment
      of Agents and Counsel48

     

    10.7Reliance
      on Documents; Counsel48

     

    10.8Agent’s
      Reimbursement and Indemnification48

     

    10.9Notice
      of
      Default49

     

    10.10Rights
      as
      a Lender49

     

    10.11Lender
      Credit Decision49

     

    10.12Successor
      Administrative Agent49

     

    10.13Administrative
      Agent’s and Arrangers’ Fees50

     

    10.14Delegation
      to Affiliates50

     

    10.15Co-Agents,
      Documentation Agent, Syndication Agent, etc50

     

    ARTICLE
      XISETOFF;
      RATABLE PAYMENTS51

     

    11.1Setoff51

     

    11.2Ratable
      Payments51

     

    ARTICLE
      XIIBENEFIT
      OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS51

     

    12.1Successors
      and Assigns51

     

    12.2Participations52

     

    12.3Assignments53

     

    12.4Dissemination
      of Information54

     

    12.5Tax
      Treatment54

     

    ARTICLE
      XIIIGUARANTY54

     

    13.1Guaranty54

     

    13.2Waivers55

     

    13.3Guaranty
      Absolute55

     

    13.4Acceleration56

     

    13.5Marshaling;
      Reinstatement56

     

    13.6Delay
      of
      Subrogation56

     

    ARTICLE
      XIVNOTICES57

     

    14.1Notices57

     

    14.2Limited
      Use of Electronic Mail57

     

    14.3Effectiveness
      of Facsimile Documents and Signatures57

     

    ARTICLE
      XVCOUNTERPARTS57

     

    ARTICLE
      XVICHOICE
      OF
      LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL58

     

    16.1CHOICE
      OF
      LAW58

     

    16.2CONSENT
      TO JURISDICTION58

     

    16.3WAIVER
      OF
      JURY TRIAL58

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CREDIT
      AGREEMENT

     

    This
      Agreement, dated as of November 10, 2005, is among VECTREN UTILITY HOLDINGS,
      INC., as Borrower, INDIANA GAS COMPANY, INC., as Guarantor, SOUTHERN INDIANA
      GAS
      AND ELECTRIC COMPANY, as Guarantor, VECTREN ENERGY DELIVERY OF OHIO, INC.,
      as
      Guarantor, the Lenders party hereto, LASALLE BANK NATIONAL ASSOCIATION, as
      an LC
      Issuer and as Syndication Agent, and JPMORGAN CHASE BANK, N.A., as an LC Issuer
      and as Administrative Agent. The parties hereto agree as follows:

     

    ARTICLE
      I  

     

    DEFINITIONS

     

    As
      used
      in this Agreement:

     

    “Acquisition”
means
      any transaction, or any series of related transactions, consummated on or after
      the date of this Agreement, by which the Borrower or any of its Subsidiaries
      (i)
      acquires any going business or all or substantially all of the assets of any
      firm, corporation or limited liability company, or division thereof, whether
      through purchase of assets, merger or otherwise or (ii) directly or indirectly
      acquires (in one transaction or as the most recent transaction in a series
      of
      transactions) at least a majority (in number of votes) of the securities of
      a
      corporation which have ordinary voting power for the election of directors
      (other than securities having such power only by reason of the happening of
      a
      contingency) or a majority (by percentage or voting power) of the outstanding
      ownership interests of a partnership or limited liability company.

     

    “Additional
      Lender”
-
      see
Section
      2.5.3.

     

    “Administrative
      Agent”
means
      JPMCB in its capacity as contractual representative of the Lenders pursuant
      to
Article
      X,
      and not
      in its individual capacity as a Lender, and any successor Administrative Agent
      appointed pursuant to Article
      X.

     

    “Administrative
      Questionnaire”
means
      an administrative questionnaire, substantially in the form supplied by the
      Administrative Agent, completed by a Lender and furnished to the Administrative
      Agent in connection with this Agreement.

     

    “Advance”
means
      a
      borrowing hereunder (or conversion or continuation thereof) consisting of the
      aggregate amount of the several Loans made on the same Borrowing Date (or date
      of conversion or continuation) by the Lenders to the Borrower of the same Type
      and, in the case of Eurodollar Loans, for the same Interest Period.

     

    “Affiliate”
of
      any
      Person means any other Person directly or indirectly controlling, controlled
      by
      or under common control with such Person. A Person shall be deemed to control
      another Person if the controlling Person owns 10% or more of any class of voting
      securities (or other ownership interests) of the controlled Person or possesses,
      directly or indirectly, the power to direct or cause the direction of the
      management or policies of the controlled Person, whether through ownership
      of
      stock, by contract or otherwise.

     

    “Aggregate
      Commitment”
means
      the aggregate of the Commitments of all the Lenders, as changed from time to
      time pursuant to the terms hereof. On the date hereof, the amount of the
      Aggregate Commitment is $515,000,000.

     

    “Aggregate
      Outstanding Credit Exposure”
means,
      at any time, the aggregate of the Outstanding Credit Exposures of all the
      Lenders.

     

    “Agreement”
means
      this Credit Agreement, as it may be amended or modified and in effect from
      time
      to time.

     

    “Agreement
      Accounting Principles”
means
      generally accepted accounting principles as in effect from time to time, applied
      in a manner consistent with that used in preparing the financial statements
      referred to in Section 5.4.

     

    “Alternate
      Base Rate”
means,
      for any day, a rate of interest per annum equal to the higher of (i) the Prime
      Rate for such day and (ii) the sum of the Federal Funds Effective Rate for
      such
      day plus
      1/2% per
      annum.

     

    “Applicable
      Fee Rate”
means,
      at any time, the percentage rate per annum at which facility fees are accruing
      on the Aggregate Commitment (without regard to usage) at such time as set forth
      in the Pricing Schedule.

     

    “Applicable
      Margin”
means,
      at any time, with respect to Advances of any Type at any time, the percentage
      rate per annum which is applicable at such time with respect to Advances of
      such
      Type, as set forth in the Pricing Schedule.

     

    “Arrangers”
means
      each of JPMorgan Securities, Inc. and LaSalle Bank National Association, in
      their capacities as Joint Lead Arrangers and Book Runners.

     

    “Article”
means
      an article of this Agreement unless another document is specifically
      referenced.

     

    “Authorized
      Officer”
means
      any Vice President, the Secretary, the Treasurer, the Assistant Secretary and
      Assistant Treasurer of the Borrower or a Guarantor, acting singly.

     

    “Borrower”
means
      Vectren Utility Holdings, Inc., an Indiana corporation, and its successors
      and
      assigns.

     

    “Borrowing
      Date”
means
      a
      date on which an Advance is made hereunder.

     

    “Borrowing
      Notice”
-
      see
Section 2.8.

     

    “Business
      Day”
means
      (i) with respect to any borrowing, payment or rate selection of Eurodollar
      Advances, a day (other than a Saturday or Sunday) on which banks generally
      are
      open in Chicago, New York and Indianapolis for the conduct of substantially
      all
      of their commercial lending activities and on which dealings in United States
      dollars are carried on in the London interbank market and (ii) for all other
      purposes, a day (other than a Saturday or Sunday) on which banks generally
      are
      open in Chicago and Indianapolis for the conduct of substantially all of their
      commercial lending activities.

     

    “Capitalized
      Lease”
of
      a
      Person means any lease of Property by such Person as lessee which would be
      capitalized on a balance sheet of such Person prepared in accordance with
      Agreement Accounting Principles.

     

    “Capitalized
      Lease Obligations”
of
      a
      Person means the amount of the obligations of such Person under Capitalized
      Leases which would be shown as a liability on a balance sheet of such Person
      prepared in accordance with Agreement Accounting Principles.

     

    “Cash
      Equivalent Investments”
means
      (i) short-term obligations of, or fully guaranteed by, the United States of
      America, (ii) commercial paper rated A-1 or better by S&P or P-1 or better
      by Moody’s, (iii) demand deposit accounts maintained in the ordinary course of
      business, and (iv) certificates of deposit issued by and time deposits with
      commercial banks (whether domestic or foreign) having capital and surplus in
      excess of $100,000,000; provided
      in each
      case that the same provides for payment of both principal and interest (and
      not
      principal alone or interest alone) and is not subject to any contingency
      regarding the payment of principal or interest.

     

    “Change
      in Control”
means
      (i) the acquisition by any Person, or two or more Persons acting in concert,
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of 30% or more
      of
      the outstanding shares of voting stock of the Parent, (ii) the occurrence during
      any period of twelve (12) consecutive months, commencing before or after the
      date of this Agreement, pursuant to which individuals who on the first day
      of
      such period were directors of the Parent (together with any replacement or
      additional directors who were nominated or elected by a majority of directors
      then in office) cease to constitute a majority of the Board of Directors of
      the
      Parent or (iii) the Parent shall cease to own, free and clear of any Lien,
      100%
      of the issued and outstanding capital stock of the Borrower.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, reformed or otherwise modified
      from time to time.

     

    “Collateral
      Shortfall Amount”
is
      defined in Section
      8.1.

     

    “Commitment”
means,
      for each Lender, the obligation of such Lender to make Loans to and participate
      in Facility LCs issued upon the application of, the Borrower in an aggregate
      amount not exceeding the amount set forth opposite its name on Schedule
      I,
      as it
      may be modified as a result of any assignment that has become effective pursuant
      to Section 12.3.3,
      or as
      otherwise modified from time to time pursuant to the terms hereof.

     

    “Consolidated
      Indebtedness”
means
      at any time the Indebtedness of a Person and its Subsidiaries calculated on
      a
      consolidated basis as of such time.

     

    “Consolidated
      Net Worth”
means
      at any time the consolidated stockholders’ equity of a Person and its
      Subsidiaries calculated on a consolidated basis as of such time.

     

    “Contingent
      Obligation”
of
      a
      Person means any agreement, undertaking or arrangement by which such Person
      assumes, guarantees, endorses, contingently agrees to purchase or provide funds
      for the payment of, or otherwise becomes or is contingently liable upon, the
      obligation or liability of any other Person (other than accounts payable of
      such
      Person’s Subsidiary arising in the ordinary course of such Subsidiary’s business
      payable on terms customary in the trade), or agrees to maintain the net worth
      or
      working capital or other financial condition of any other Person, or otherwise
      assures any creditor of such other Person against loss, including, without
      limitation, any comfort letter, operating agreement or take-or-pay
      contract.

     

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

     

    “Conversion/Continuation
      Notice”
-
      see
Section 2.9.

     

    “Credit
      Extension”
means
      the making of an Advance, the issuance of a Facility LC hereunder or the
      amendment or extension of a Facility LC.

     

    “Credit
      Extension Date”
means
      the Borrowing Date for an Advance, the issuance date for a Facility LC or the
      date of amendment or extension of a Facility LC.

     

    “Default”
means
      an event described in Article
      VII.

     

    “Environmental
      Laws”
means
      any and all federal, state, local and foreign statutes, laws, judicial
      decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,
      injunctions, permits, concessions, grants, franchises, licenses, agreements
      and
      other governmental restrictions relating to (i) the protection of the
      environment, (ii) the effect of the environment on human health, (iii)
      emissions, discharges or releases of pollutants, contaminants, hazardous
      substances or wastes into surface water, ground water or land or (iv) the
      manufacture, processing, distribution, use, treatment, storage, disposal,
      transport or handling of pollutants, contaminants, hazardous substances or
      wastes or the clean-up or other remediation thereof.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and any rule or regulation issued thereunder.

     

    “Eurodollar
      Advance”
means
      an Advance which, except as otherwise provided in Section 2.11,
      bears
      interest at the applicable Eurodollar Rate.

     

    “Eurodollar
      Base Rate”
means,
      with respect to any Eurodollar Advance or a Eurodollar Loan for the relevant
      Interest Period applicable to such Eurodollar Advance, the rate determined
      by
      the Administrative Agent to be the rate at which JPMCB offers to place deposits
      in U.S. dollars with first-class banks in the London interbank market at
      approximately 11:00 a.m. (London time) two Business Days prior to the first
      day
      of such Interest Period, in the approximate amount of JPMCB’s relevant portion
      of the Eurodollar Advance and having a maturity approximately equal to such
      Interest Period.

     

    “Eurodollar
      Loan”
means
      a
      Loan which, except as otherwise provided in Section
      2.11,
      bears
      interest at the applicable Eurodollar Rate.

     

    “Eurodollar
      Rate”
means,
      with respect to a Eurodollar Advance or a Eurodollar Loan for the relevant
      Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate
      applicable to such Interest Period, divided by
      (b) one
minus
      the
      Reserve Requirement (expressed as a decimal) applicable to such Interest Period,
      plus
      (ii) the
      Applicable Margin for Eurodollar Advances. The Eurodollar Rate shall be rounded
      to the next higher multiple of 1/16 of 1% if the rate is not such a
      multiple.

     

    “Excluded
      Taxes”
means,
      in the case of each Lender or applicable Lending Installation and the
      Administrative Agent, taxes imposed on its overall net income, and franchise
      taxes imposed on it, by (i) the jurisdiction under the laws of which such Lender
      or the Administrative Agent is incorporated or organized or (ii) the
      jurisdiction in which the Administrative Agent’s or such Lender’s principal
      executive office or such Lender’s applicable Lending Installation is
      located.

     

    “Exhibit”
refers
      to an exhibit to this Agreement, unless another document is specifically
      referenced.

     

    “Existing
      Credit Agreement”
means
      the Credit Agreement, dated as of June 24, 2004, among the Borrower, the
      Guarantors, various financial institutions and JPMorgan Chase Bank, N.A.
      (successor by merger to Bank One, NA), as agent.

     

    “Existing
      Indebtedness”
means
      Indebtedness existing on the date hereof.

     

    “Facility
      LC”
is
      defined in Section
      2.19.1.

     

    “Facility
      LC Application”
is
      defined in Section
      2.19.3.

     

    “Facility
      LC Collateral Account”
is
      defined in Section
      2.19.11.

     

    “Facility
      Termination Date”
means
      the earlier to occur of (i) November 10, 2010 (or any later date as may be
      established pursuant to Section
      2.20)
      or (ii)
      any earlier date on which the Aggregate Commitment is reduced to zero or
      otherwise terminated pursuant to the terms hereof.

     

    “Federal
      Funds Effective Rate”
means,
      for any day, an 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 on such day, as published
      for
      such day (or, if such day is not a Business Day, for the immediately preceding
      Business Day) by the Federal Reserve Bank of New York, or, if such rate is
      not
      so published for any day which is a Business Day, the average of the quotations
      at approximately 10:00 a.m. (Chicago time) on such day on such transactions
      received by the Administrative Agent from three Federal funds brokers of
      recognized standing selected by the Administrative Agent in its sole
      discretion.

     

    “Fee
      Letters”
means
      each of (i) that certain letter agreement dated as of October 17, 2005 among
      Vectren Capital, Corp., the Borrower and LaSalle Bank National Association
      and
      (ii) that certain letter agreement dated as of October 17, 2005 among Vectren
      Capital, Corp., the Borrower, JPMorgan Chase Bank, N.A. and JPMorgan Securities,
      Inc.

     

    “Financial
      Contract”
of
      a
      Person means (i) any exchange-traded or over-the-counter futures, forward,
      swap
      or option contract or other financial instrument with similar characteristics,
      (ii) any agreements, devices or arrangements providing for payments related
      to
      fluctuations of interest rates, exchange rates or forward rates, including,
      but
      not limited to, interest rate exchange agreements, forward currency exchange
      agreements, interest rate cap or collar protection agreements, forward rate
      currency or interest rate options or (iii) to the extent not otherwise included
      in the foregoing, any Rate Hedging Agreement.

     

    “Floating
      Rate”
means,
      for any day, a rate per annum equal to (i) the Alternate Base Rate for such
      day
plus
      (ii) the
      Applicable Margin for Floating Rate Advances, in each case changing when and
      as
      the Alternate Base Rate changes.

     

    “Floating
      Rate Advance”
means
      an Advance which, except as otherwise provided in Section
      2.11,
      bears
      interest at the Floating Rate.

     

    “Floating
      Rate Loan”
means
      a
      Loan which, except as otherwise provided in Section
      2.11,
      bears
      interest at the Floating Rate.

     

    “Guaranteed
      Obligations”
-
      see
Section
      13.1.

     

    “Guarantor”
means
      each of Indiana Gas Company, Inc., SIGECO and Vectren Energy Delivery of Ohio,
      Inc., and each of their respective successors and assigns.

     

    “Indebtedness”
of
      a
      Person means such Person’s (i) obligations for borrowed money, (ii) obligations
      representing the deferred purchase price of Property or services (other than
      accounts payable arising in the ordinary course of such Person’s business
      payable on terms customary in the trade), (iii) obligations, whether or not
      assumed, secured by Liens or payable out of the proceeds or production from
      Property now or hereafter owned or acquired by such Person, (iv) obligations
      which are evidenced by notes, acceptances or other instruments, (v) obligations
      of such Person to purchase securities or other Property arising out of or in
      connection with the sale of the same or substantially similar securities or
      Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations,
      (viii) reimbursement and other obligations in connection with letters of credit,
      (ix) Net Mark-to-Market Exposure of Rate Hedging Agreements and other Financial
      Contracts, (x) Synthetic Lease Obligations and (xi) any other obligation for
      borrowed money or other financial accommodation which in accordance with
      Agreement Accounting Principles would be shown as a liability on the
      consolidated balance sheet of such Person.

     

    “Interest
      Period”
means,
      with respect to any Eurodollar Advance, a period of one, two, three or six
      months commencing on a Business Day selected by the Borrower pursuant to this
      Agreement. Such Interest Period shall end on the day which corresponds
      numerically to such date one, two, three or six months thereafter, provided,
      however, that
      if
      there is no such numerically corresponding day in such next, second, third
      or sixth succeeding month, such Interest Period shall end on the last Business
      Day of such next, second, third or sixth succeeding month. If an Interest Period
      would otherwise end on a day which is not a Business Day, such Interest Period
      shall end on the next succeeding Business Day,
      provided,
      however, that
      if
      said next succeeding Business Day falls in a new calendar month, such Interest
      Period shall end on the immediately preceding Business Day.

     

    “Investment”
of
      a
      Person means any loan, advance (other than commission, travel and similar
      advances to officers and employees made in the ordinary course of business),
      extension of credit (other than accounts receivable arising in the ordinary
      course of business on terms customary in the trade) or contribution of capital
      by such Person; stocks, bonds, mutual funds, partnership interests, notes,
      debentures or other securities owned by such Person; any deposit accounts and
      certificate of deposit owned by such Person; and structured notes, derivative
      financial instruments and other similar instruments or contracts owned by such
      Person.

     

    “JPMCB”
means
      JPMorgan Chase Bank, N.A., a national banking association, in its individual
      capacity, and its successors and assigns.

     

    “LaSalle”
means
      LaSalle Bank National Association, a national banking association, in its
      individual capacity, and its successors and assigns.

     

    “LC
      Commitment”
means
      (i) with respect to JPMCB, $150,000,000 and (ii) with respect to LaSalle,
      $100,000,000. 

     

    “LC
      Fee”
is
      defined in Section
      2.19.4.

     

    “LC
      Issuers”
means
      each of JPMCB (or any subsidiary or affiliate of JPMCB designated by JPMCB)
      and
      LaSalle (or any subsidiary or affiliate of LaSalle designated by LaSalle),
      in
      their capacities as issuers of Facility LCs hereunder.

     

    “LC
      Obligations”
means,
      at any time, the sum, without duplication, of (i) the aggregate undrawn stated
      amount under all Facility LCs outstanding at such time plus (ii) the aggregate
      unpaid amount at such time of all Reimbursement Obligations.

     

    “LC
      Payment Date”
is
      defined in Section
      2.19.5.

     

    “Lenders”
means
      the lending institutions listed on the signature pages of this Agreement and
      their respective successors and assigns.

     

    “Lending
      Installation”
means,
      with respect to a Lender, the office, branch, subsidiary or affiliate of such
      Lender specified as such in its Administrative Questionnaire or otherwise
      selected by such Lender pursuant to Section 2.16.

     

    “Lien”
means
      any lien (statutory or other), security interest, mortgage, pledge,
      hypothecation, assignment, deposit arrangement, encumbrance or preference,
      priority or other security agreement or preferential arrangement of any kind
      or
      nature whatsoever (including, without limitation, the interest of a vendor
      or
      lessor under any conditional sale, Capitalized Lease or other title retention
      agreement).

     

    “Loan”
means,
      with respect to a Lender, such Lender’s loans made pursuant to Article
      II
      (or any
      conversion or continuation thereof).

     

    “Loan
      Documents”
means
      this Agreement, the Facility LC Applications, the Fee Letters, the Notes, and
      any other documents or instruments now or hereafter executed and delivered
      by or
      on behalf of the Borrower or any Guarantor to the Administrative Agent or the
      Lenders to further evidence or govern the Obligations.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (i) the business, Property, condition (financial
      or
      otherwise) or results of operations of the Borrower and its Subsidiaries taken
      as a whole, (ii) the ability of the Borrower or any Guarantor to perform its
      obligations under the Loan Documents, or (iii) the validity or enforceability
      of
      any of the Loan Documents or the rights or remedies of the Administrative Agent,
      the LC Issuers or the Lenders thereunder.

     

    “Material
      Indebtedness”
-
      see
Section 7.5.

     

    “Modify”
and
      “Modification”
are
      defined in Section
      2.19.1.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc.

     

    “Mortgage
      Indenture”
means
      the Mortgage and Deed of Trust, dated as of April 1, 1932, between SIGECO and
      Bankers Trust Company (as supplemented from time to time before or after the
      date hereof by various supplemental indentures thereto).

     

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

     

    “Net
      Mark-to-Market Exposure”
of
      a
      Person means, as of any date of determination, the excess (if any) of all
      unrealized losses over all unrealized profits of such Person arising from Rate
      Hedging Agreements or other Financial Contracts. “Unrealized losses” means the
      fair market value of the cost to such Person of replacing such Rate Hedging
      Agreement or other Financial Contract as of the date of determination (assuming
      the Rate Hedging Agreement or other Financial Contract were to be terminated
      as
      of that date), and “unrealized profits” means the fair market value of the gain
      to such Person of replacing such Rate Hedging Agreement or other Financial
      Contract as of the date of determination (assuming such Rate Hedging Agreement
      or other Financial Contract were to be terminated as of that date).

     

    “Non-U.S.
      Lender”
-
      see
Section 3.5(iv).

     

    “Notes”
means
      the Notes, each substantially in the form of Exhibit
      A hereto,
      duly executed by the Borrower to the respective Lenders to evidence the Credit
      Extensions, including any and all renewals, extensions, replacements and
      modifications thereof.

     

    “Obligations”
means
      all unpaid principal of and accrued and unpaid interest on the Loans, all
      Reimbursement Obligations, all accrued and unpaid fees and all expenses,
      reimbursements, indemnities and other obligations of the Borrower to the Lenders
      or to any Lender, the Administrative Agent, any LC Issuer or any indemnified
      party arising under the Loan Documents.

     

    “Other
      Taxes”
-
      see
Section 3.5(ii).

     

    “Outstanding
      Credit Exposure”
means,
      as to any Lender at any time, the sum of (i) the aggregate principal amount
      of
      its Loans outstanding at such time, plus (ii) an amount equal to its Pro Rata
      Share of the LC Obligations at such time.

     

    “Parent”
means
      Vectren Corporation, an Indiana corporation.

     

    “Participants”
-
      see
Section 12.2.1.

     

    “Payment
      Date”
means
      the last Business Day of each month.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Person”
means
      any natural person, corporation, firm, joint venture, partnership, limited
      liability company, association, enterprise, trust or other entity or
      organization, or any government or political subdivision or any agency,
      department or instrumentality thereof.

     

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

     

    “Pricing
      Schedule”
means
      the Schedule attached hereto identified as such.

     

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

     

    “Pro
      Rata Share”
means,
      as to any Lender, when used with reference to an aggregate or total amount,
      an
      amount equal to the product of (a) such aggregate or total amount, multiplied by
      (b) a
      fraction, the numerator of which shall be the sum of such Lender’s Commitment
      (or, if the Commitments have been terminated, such Lender’s Outstanding Credit
      Exposure) and the denominator of which shall be the Aggregate Commitment (or,
      if
      the Commitments have been terminated, the Aggregate Outstanding Credit
      Exposure).

     

    “Property”
of
      a
      Person means any and all property, whether real, personal, tangible, intangible,
      or mixed, of such Person, or other assets owned, leased or operated by such
      Person.

     

    “Purchasers”
-
      see
Section 12.3.1.

     

    “Rate
      Hedging Agreement”
means
      an agreement, device or arrangement providing for payments which are related
      to
      fluctuations of interest rates, exchange rates or forward rates, including,
      but
      not limited to, dollar-denominated or cross-currency interest rate exchange
      agreements, forward currency exchange agreements, interest rate cap or collar
      protection agreements, forward rate currency or interest rate options, puts
      and
      warrants.

     

    “Rate
      Hedging Obligations”
of
      a
      Person means any and all obligations of such Person, whether absolute or
      contingent and howsoever and whensoever created, arising, evidenced or acquired
      (including all renewals, extensions and modifications thereof and substitutions
      therefor), under (i) any and all Rate Hedging Agreements, and (ii) any and
      all
      cancellations, buy backs, reversals, terminations or assignments of any Rate
      Hedging Agreement.

     

    “Register”
—
see
      Section 12.3.4.

     

    “Regulation
      D”
means
      Regulation D of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor thereto or other regulation or official
      interpretation of said Board of Governors relating to reserve requirements
      applicable to member banks of the Federal Reserve System.

     

    “Regulation
      U”
means
      Regulation U of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor or other regulation or official
      interpretation of said Board of Governors relating to the extension of credit
      by
      banks for the purpose of purchasing or carrying margin stocks applicable to
      member banks of the Federal Reserve System.

     

    “Reimbursement
      Obligations”
means,
      at any time, the aggregate of all obligations of the Borrower then outstanding
      under Section
      2.19
      to
      reimburse each LC Issuer for amounts paid by such LC Issuer in respect of any
      one or more drawings under Facility LCs.

     

    “Reportable
      Event”
means
      a
      reportable event as defined in Section 4043 of ERISA and the regulations
      issued under such section, with respect to a Plan, excluding, however, such
      events as to which the PBGC has by regulation waived the requirement of
      Section 4043(a) of ERISA that it be notified within 30 days of the
      occurrence of such event, provided,
      however, that
      a
      failure to meet the minimum funding standard of Section 412 of the Code and
      of Section 302 of ERISA shall be a Reportable Event regardless of the
      issuance of any such waiver of the notice requirement in accordance with either
      Section 4043(a) of ERISA or Section 412(d) of the Code.

     

    “Reports”
-
      see
Section 9.6.

     

    “Required
      Lenders”
means
      Lenders in the aggregate having more than 50% of the Aggregate Commitment or,
      if
      the Aggregate Commitment has been terminated, Lenders in the aggregate holding
      more than 50% of the Aggregate Outstanding Credit Exposure.

     

    “Reserve
      Requirement”
means,
      with respect to an Interest Period, the maximum aggregate reserve requirement
      (including all basic, supplemental, marginal and other reserves) which is
      imposed under Regulation D on Eurocurrency liabilities.

     

    “S&P”
means
      Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
      Inc.

     

    “Schedule”
refers
      to a specific schedule to this Agreement, unless another document is
      specifically referenced.

     

    “Section”
means
      a
      numbered section of this Agreement, unless another document is specifically
      referenced.

     

    “SIGECO”
means
      Southern Indiana Gas and Electric Company, an Indiana corporation.

     

    “Single
      Employer Plan”
means
      a
      Plan maintained by the Borrower or any other member of the Controlled Group
      for
      employees of the Borrower or any other member of the Controlled
      Group.

     

    “Subsidiary”
of
      a
      Person means (i) any corporation more than 50% of the outstanding securities
      having ordinary voting power of which shall at the time be owned or controlled,
      directly or indirectly, by such Person or by one or more of its Subsidiaries
      or
      by such Person and one or more of its Subsidiaries or (ii) any partnership,
      limited liability company, association, joint venture or similar business
      organization more than 50% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled. Unless otherwise
      expressly provided, all references herein to a “Subsidiary” shall mean a
      Subsidiary of the Borrower.

     

    “Substantial
      Portion”
means,
      with respect to the Property of the Borrower and its Subsidiaries, Property
      which (i) represents more than 10% of the consolidated assets of the Borrower
      and its Subsidiaries as would be shown in the consolidated financial statements
      of the Borrower and its Subsidiaries as at the beginning of the twelve-month
      period ending with the month in which such determination is made or (ii) is
      responsible for more than 10% of the consolidated net sales or of the
      consolidated net income of the Borrower and its Subsidiaries as reflected in
      the
      financial statements referred to in clause
      (i)
      above.

     

    “Synthetic
      Lease Obligation”
means
      the monetary obligation of a Person under (i) a so-called synthetic or
      off-balance sheet or tax retention lease or (ii) an agreement for the use or
      possession of property creating obligations that do not appear on the balance
      sheet of such Person but which, upon the insolvency or bankruptcy of such
      Person, would be characterized as indebtedness of such Person (without regard
      to
      accounting treatment). The amount of Synthetic Lease Obligations of any Person
      under any such lease or agreement shall be the amount which would be shown
      as a
      liability on a balance sheet of such Person prepared in accordance with
      Agreement Accounting Principles if such lease or agreement were accounted for
      as
      a Capitalized Lease.

     

    “Taxes”
means
      any and all present or future taxes, duties, levies, imposts, deductions,
      charges or withholdings, and any and all liabilities with respect to the
      foregoing, but excluding Excluded
      Taxes.

     

    “Transferee”
-
      see
Section 12.4.

     

    “Type”
means,
      with respect to any Advance, its nature as a Floating Rate Advance or a
      Eurodollar Advance and with respect to any Loan, its nature as a Floating Rate
      Loan or a Eurodollar Loan.

     

    “Unfunded
      Liabilities”
means
      the amount (if any) by which the present value of all vested and unvested
      accrued benefits under all Single Employer Plans exceeds the fair market value
      of all such Plan assets allocable to such benefits, all determined as of the
      then most recent valuation date for such Plans using PBGC actuarial assumptions
      for single employer plan terminations.

     

    “Unmatured
      Default”
means
      an event which but for the lapse of time or the giving of notice, or both,
      would
      constitute a Default.

     

    “Wholly-Owned
      Subsidiary”
of
      a
      Person means (i) any Subsidiary all of the outstanding voting securities of
      which shall at the time be owned or controlled, directly or indirectly, by
      such
      Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
      Person and one or more Wholly-Owned Subsidiaries of such Person, or (ii) any
      partnership, limited liability company, association, joint venture or similar
      business organization 100% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled.

     

    The
      foregoing definitions shall be equally applicable to both the singular and
      plural forms of the defined terms.

     

    ARTICLE
      II  

     

    THE
      CREDITS

     

    2.1  Commitments.
      Subject
      to the terms and conditions of this Agreement and prior to the Facility
      Termination Date, each Lender severally agrees, on the terms and conditions
      set
      forth in this Agreement, to (i) make loans to the Borrower and (ii)
      participate in Facility LCs issued upon the request of the Borrower,
provided
      that,
      after giving effect to the making of each such Loan and the issuance of each
      such Facility LC, such Lender’s Outstanding Credit Exposure shall not exceed its
      Commitment. No requested Credit Extension shall cause the Aggregate Outstanding
      Credit Exposure to exceed the Aggregate Commitment. Subject to the terms of
      this
      Agreement, the Borrower may borrow, repay and reborrow such available amount
      under the Commitments at any time prior to the Facility Termination Date. The
      Commitments to lend hereunder shall expire on the Facility Termination Date.
      The
      Credit Extensions made by the Lenders pursuant hereto shall be evidenced by
      the
      Notes. Each LC Issuer will issue Facility LCs hereunder on the terms and
      conditions set forth in Section 2.19.

     

    2.2  Required
      Payments; Clean-Down; Termination.
      The
      Aggregate Outstanding Credit Exposure and all other unpaid Obligations shall
      be
      paid in full by the Borrower on the Facility Termination Date. The Borrower
      shall cause the aggregate amount of the Advances to not exceed zero for one
      Business Day in each period of 364 consecutive days.

     

    2.3  Ratable
      Loans.
      Each
      Advance hereunder shall consist of Loans made from the several Lenders in
      accordance with their respective Pro Rata Shares.

     

    2.4  Types
      of Advances.
      The
      Advances may be Floating Rate Advances or Eurodollar Advances, or a
      combination thereof, selected by the Borrower in accordance with Sections
      2.8
      and
2.9.

     

    2.5  Facility
      Fee; Changes in Aggregate Commitment.

     

    2.5.1  The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender according to its Pro Rata Share a facility fee at a per annum rate equal
      to the Applicable Fee Rate from and after the date hereof to and including
      the
      Facility Termination Date on such Lender’s Commitment (regardless of usage) in
      effect from time to time. Such facility fees shall be payable in arrears on
      the
      last Business Day of each quarter and on the Facility Termination
      Date.

     

    2.5.2  The
      Borrower may permanently reduce the Aggregate Commitment in whole, or in
      part ratably among the Lenders in integral multiples of $5,000,000, upon at
      least three Business Days’ prior written notice to the Administrative Agent,
      which notice shall specify the amount of any such reduction, provided,
      however, that
      the
      amount of the Aggregate Commitment may not be reduced below the Aggregate
      Outstanding Credit Exposure. All accrued facility fees shall be payable on
      the
      effective date of any termination of the obligations of the Lenders to make
      Credit Extensions hereunder.

     

    2.5.3  So
      long
      as no Default or Unmatured Default exists or would result therefrom, the
      Borrower may, from time to time, by means of a letter delivered to the
      Administrative Agent substantially in the form of Exhibit
      E,
      and
      acknowledged by the Guarantors, request that the Aggregate Commitment be
      increased to up to $575,000,000 (less the amount of any previous reductions
      of
      the Aggregate Commitment pursuant to Section
      2.5.2
      above)
      by (a) increasing the Commitment of one or more Lenders that have agreed to
      such
      increase and/or (b) adding one or more commercial banks or other Persons as
      a
      party hereto (each an “Additional
      Lender”)
      with a
      Commitment in an amount agreed to by any such Additional Lender; provided
      that no
      Additional Lender shall be added as a party hereto without the written consent
      of the Administrative Agent (which shall not be unreasonably withheld). Any
      increase in the Aggregate Commitment pursuant to this Section
      2.5.3
      shall be
      effective three Business Days after the date on which the Administrative Agent
      has received and accepted the applicable increase letter in the form of
Annex
      1
      to
Exhibit
      E
      (in the
      case of an increase in the Commitment of an existing Lender) or assumption
      letter in the form of Annex
      2
      to
Exhibit
      E
      (in the
      case of the addition of an Additional Lender). The Administrative Agent shall
      promptly notify the Borrower and the Lenders of any increase in the amount
      of
      the Aggregate Commitment pursuant to this Section
      2.5.3
      and of
      the Commitment of each Lender after giving effect thereto. The Borrower
      acknowledges that, in order to maintain Advances in accordance with each
      Lender’s pro rata share of all outstanding Advances prior to any increase in the
      Aggregate Commitment pursuant to this Section
      2.5.3,
      a
      reallocation of the Commitments as a result of a non-pro-rata increase in the
      Aggregate Commitment may require prepayment of all or portions of certain
      Advances on the date of such increase (and any such prepayment shall be subject
      to the provisions of Section
      3.4).

     

    2.6  Minimum
      Amount of Each Advance.
      Each
      Eurodollar Advance shall be in the minimum amount of $10,000,000 and in integral
      multiples of $1,000,000 (if in excess thereof), and each Floating Rate Advance
      may be in the amount of $1,000,000 or an integral multiple thereof. The
      Borrower shall not request a Eurodollar Advance if, after giving effect thereto,
      more than seven separate Eurodollar Advances would be outstanding.

     

    2.7  Optional
      Principal Payments.
      The
      Borrower may from time to time pay, without penalty or premium, all
      outstanding Floating Rate Advances, or, in a minimum aggregate amount of
      $1,000,000 or any integral multiple of $1,000,000 in excess thereof, any portion
      of the outstanding Floating Rate Advances upon one Business Day’s prior notice
      to the Administrative Agent. The Borrower may from time to time pay, subject
      to
      the payment of any funding indemnification amounts required by Section 3.4
      but
      without penalty or premium, all outstanding Eurodollar Advances, or, in a
      minimum aggregate amount of $5,000,000 or any integral multiple of $1,000,000
      in
      excess thereof, any portion of the outstanding Eurodollar Advances upon three
      Business Days’ prior notice to the Administrative Agent. Each prepayment
      pursuant to this Section shall be made together with accrued and unpaid interest
      to the date of such prepayment on the principal amount paid.

     

    2.8  Method
      of Selecting Types and Interest Periods for New Advances.
      The
      Borrower shall select the Type of Advance and, in the case of each Eurodollar
      Advance, the Interest Period applicable thereto from time to time. The Borrower
      shall give the Administrative Agent irrevocable notice (a “Borrowing
      Notice”)
      not
      later than 10:00 a.m. (Chicago time) on the proposed Borrowing Date of each
      Floating Rate Advance and three Business Days before the Borrowing Date for
      each
      Eurodollar Advance, specifying:

     

    (i)  the
      Borrowing Date, which shall be a Business Day, of such Advance,

     

    (ii)  the
      aggregate amount of such Advance,

     

    (iii)  the
      Type
      of Advance selected, and

     

    (iv)  in
      the
      case of each Eurodollar Advance, the Interest Period applicable
      thereto.

     

    Any
      notice received later than 10:00 a.m. (Chicago time) on any day shall be deemed
      to be received on the following Business Day. The Administrative Agent shall
      notify the Lenders of the Borrower’s intent to borrow by 12:00 p.m. (Chicago
      time) on the date it receives a timely Borrowing Notice from the Borrower.
      Not
      later than 2:00 p.m. (Chicago time) on each Borrowing Date, each Lender shall
      make available its Loan or Loans in immediately available funds to the
      Administrative Agent at its address specified pursuant to Article
      XIV.
      The
      Administrative Agent will make the funds so received from the Lenders available
      to the Borrower at the Administrative Agent’s aforesaid address.

     

    2.9  Conversion
      and Continuation of Outstanding Advances.
      Floating Rate Advances shall continue as Floating Rate Advances unless and
      until
      such Floating Rate Advances are converted into Eurodollar Advances pursuant
      to
      this Section 2.9
      or are
      repaid in accordance with Section 2.7.
      Each
      Eurodollar Advance shall continue as a Eurodollar Advance until the end of
      the
      then applicable Interest Period therefor, at which time such Eurodollar Advance
      shall be automatically converted into a Floating Rate Advance unless (x) such
      Eurodollar Advance is or was repaid in accordance with Section
      2.7
      or (y)
      the Borrower shall have given the Administrative Agent a Conversion/Continuation
      Notice (as defined below) requesting that, at the end of such Interest Period,
      such Eurodollar Advance continue as a Eurodollar Advance for the same or another
      Interest Period. Subject to the terms of Section 2.6,
      the
      Borrower may elect from time to time to convert all or any part of a
      Floating Rate Advance into a Eurodollar Advance. The Borrower shall give the
      Administrative Agent irrevocable notice (a “Conversion/Continuation
      Notice”)
      of
      each conversion of a Floating Rate Advance into a Eurodollar Advance or
      continuation of a Eurodollar Advance not later than 10:00 a.m. (Chicago
      time) at least three Business Days prior to the date of the requested conversion
      or continuation, specifying:

     

    (i)  the
      requested date, which shall be a Business Day, of such conversion or
      continuation,

     

    (ii)  the
      aggregate amount and Type of the Advance which is to be converted or continued,
      and

     

    (iii)  the
      amount of such Advance which is to be converted into or continued as a
      Eurodollar Advance and the duration of the Interest Period applicable
      thereto.

     

    2.10  Changes
      in Interest Rate, etc.
      Each
      Floating Rate Advance shall bear interest on the outstanding principal amount
      thereof, for each day from and including the date such Advance is made or is
      automatically converted from a Eurodollar Advance into a Floating Rate Advance
      pursuant to Section
      2.9,
      to but
      excluding the date it is paid or is converted into a Eurodollar Advance pursuant
      to Section
      2.9,
      at a
      rate per annum equal to the Floating Rate for such day. Changes in the rate
      of
      interest on that portion of any Advance maintained as a Floating Rate Advance
      will take effect simultaneously with each change in the Alternate Base Rate.
      Each Eurodollar Advance shall bear interest on the outstanding principal amount
      thereof from and including the first day of each Interest Period applicable
      thereto to (but not including) the last day of such Interest Period at the
      interest rate determined by the Administrative Agent as applicable to such
      Eurodollar Advance based upon the Borrower’s selections under Sections
      2.8
      and
2.9
      and
      otherwise in accordance with the terms hereof. No Interest Period may end after
      the Facility Termination Date.

     

    2.11  Rates
      Applicable After Default.
      Notwithstanding anything to the contrary contained in Section
      2.8,
      2.9
      or
2.10,
      during
      the continuance of a Default or Unmatured Default the Required Lenders may,
      at
      their option, by notice to the Borrower (which notice may be revoked at the
      option of the Required Lenders notwithstanding any provision of Section
      8.3
      requiring unanimous consent of the Lenders to changes in interest rates),
      declare that no Advance may be made as, converted into or continued as a
      Eurodollar Advance. During the continuance of a Default the Required Lenders
      may, at their option, by notice to the Borrower (which notice may be revoked
      at
      the option of the Required Lenders notwithstanding any provision of Section
      8.3
      requiring unanimous consent of the Lenders to changes in interest rates),
      declare that (i) each Eurodollar Advance shall bear interest for the remainder
      of the applicable Interest Period at the rate otherwise applicable to such
      Interest Period plus 2% per annum, (ii) each Floating Rate Advance shall bear
      interest at a rate per annum equal to the Floating Rate in effect from time
      to
      time plus
      2% per
      annum and (iii) the LC Fee shall be increased by 2% per annum,  provided
      that,
      during the continuance of a Default under Section
      7.6
      or
7.7,
      the
      interest rates set forth in clauses
      (i)
      and (ii)
      above
      and the increase in the LC Fee set forth in clause
      (iii)
      above
      shall be applicable to all Credit Extensions without any election or action
      on
      the part of the Administrative Agent or any Lender.

     

    2.12  Method
      of Payment.
      All
      payments of the Obligations hereunder shall be made, without setoff, deduction,
      or counterclaim, and without relief from valuation and appraisement laws, in
      immediately available funds to the Administrative Agent at the Administrative
      Agent’s address specified pursuant to Article
      XIV,
      or at
      any other Lending Installation of the Administrative Agent specified in writing
      by the Administrative Agent to the Borrower, by noon (Chicago time) on the
      date
      when due and shall (except in the case of Reimbursement Obligations for which
      an
      LC Issuer has not been fully indemnified by the Lenders, or as otherwise
      specifically required hereunder) be applied ratably by the Administrative Agent
      among the Lenders. Each payment delivered to the Administrative Agent for the
      account of any Lender shall be delivered promptly by the Administrative Agent
      to
      such Lender in the same type of funds that the Administrative Agent received
      at
      its address specified pursuant to Article
      XIV
      or at
      any Lending Installation specified in a notice received by the Administrative
      Agent from such Lender. The Administrative Agent is hereby authorized to charge
      the account of the Borrower maintained with JPMCB for each payment of principal,
      interest, Reimbursement Obligations and fees as it becomes due hereunder.
      Each
      reference to the Administrative Agent in this Section
      2.12
      shall
      also be deemed to refer, and shall apply equally, to each LC Issuer, in the
      case
      of payments required to be made by the Borrower to such LC Issuer pursuant
      to
Section
      2.19.6.

     

    2.13  Notes;
      Telephonic Notices.
      Each
      Lender is hereby authorized to record the principal amount of each of its Credit
      Extensions and each repayment on any schedule attached to its Note (and each
      such record shall be conclusive, absent manifest error), provided,
      however,
      that
      neither the failure to so record nor any error in such recordation shall affect
      the Borrower’s obligations under such Note. The Borrower hereby authorizes the
      Lenders and the Administrative Agent to extend, convert or continue Advances,
      effect selections of Types of Advances and to transfer funds based on telephonic
      notices made by any person or persons the Administrative Agent or any Lender
      believes in good faith to be acting on behalf of the Borrower, it being
      understood that the foregoing authorization is specifically intended to allow
      Borrowing Notices and Conversion/Continuation Notices to be given
      telephonically. The Borrower agrees to deliver promptly to the Administrative
      Agent a written confirmation, if such confirmation is requested by the
      Administrative Agent or any Lender, of each telephonic notice signed by an
      Authorized Officer of the Borrower. If the written confirmation differs in
      any
      material respect from the action taken by the Administrative Agent and the
      Lenders, the records of the Administrative Agent and the Lenders shall govern
      absent manifest error.

     

    2.14  Interest
      Payment Dates; Interest and Fee Basis.
      Interest accrued on each Floating Rate Advance shall be payable on each Payment
      Date, commencing with the first such date to occur after the date hereof, on
      any
      date on which such Advance is prepaid, whether due to acceleration or otherwise,
      and at maturity. Interest accrued on each Eurodollar Advance shall be payable
      on
      the last day of its applicable Interest Period, or any date on which the
      Eurodollar Advance is prepaid, whether by acceleration or otherwise, and on
      the
      Facility Termination Date. Interest accrued on each Eurodollar Advance having
      an
      Interest Period longer than three (3) months shall also be payable on the last
      day of each three (3) month interval during such Interest Period. Interest,
      facility fees and LC Fees shall be calculated for actual days elapsed on the
      basis of a 360-day year. Interest shall be payable for the day an Advance is
      made but not for the day of any payment on the amount paid if payment is
      received prior to noon (Chicago time) at the place of payment. If any payment
      of
      principal of or interest on an Advance shall become due on a day which is not
      a
      Business Day, then (subject to the second proviso
      of the
      definition of “Interest Period”) such payment shall be made on the next
      succeeding Business Day and, in the case of a principal payment, such extension
      of time shall be included in computing interest in connection with such
      payment.

     

    2.15  Notification
      of Advances, Interest Rates, Prepayments and Commitment
      Reductions.
      Promptly after receipt thereof, the Administrative Agent will notify each Lender
      of the contents of each Aggregate Commitment reduction notice, Borrowing Notice,
      Conversion/Continuation Notice and repayment notice received by it hereunder.
      Promptly after notice from an LC Issuer, the Administrative Agent will notify
      each Lender of the contents of each request for issuance of a Facility LC
      hereunder. The Administrative Agent will notify each Lender of the interest
      rate
      applicable to each Eurodollar Advance promptly upon determination of such
      interest rate and will give each Lender prompt notice of each change in the
      Alternate Base Rate. Each determination by the Administrative Agent of the
      applicable interest rate shall be binding and conclusive absent manifest
      error.

     

    2.16  Lending
      Installations.
      Each
      Lender may book its Loans and its participation in any LC Obligations and each
      LC Issuer may book the Facility LCs at any Lending Installation selected by
      such
      Lender or such LC Issuer, as the case may be, and may change its Lending
      Installation from time to time. All terms of this Agreement shall apply to
      any
      such Lending Installation and the Loans, Facility LCs, participations in LC
      Obligations and any Notes issued hereunder shall be deemed held by each Lender
      for the benefit of such Lending Installation. Each Lender and each LC Issuer
      may, by written notice to the Administrative Agent and the Borrower in
      accordance with Article
      XIV,
      designate replacement or additional Lending Installations through which Loans
      will be made by it or Facility LCs will be issued by it and for whose account
      Loan payments or payments with respect of Facility LCs are to be
      made.

     

    2.17  Non-Receipt
      of Funds by the Administrative Agent.
      Unless
      the Borrower or a Lender, as the case may be, notifies the Administrative Agent
      prior to the date on which it is scheduled to make payment to the Administrative
      Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the
      case
      of the Borrower, a payment of principal, interest or fees to the Administrative
      Agent for the account of the Lenders, that it does not intend to make such
      payment, the Administrative Agent may assume that such payment has been
      made. The Administrative Agent may, but shall not be obligated to, make the
      amount of such payment available to the intended recipient in reliance upon
      such
      assumption. If such Lender or the Borrower, as the case may be, has not in
      fact
      made such payment to the Administrative Agent, the recipient of such payment
      shall, on demand by the Administrative Agent, repay to the Administrative Agent
      the amount so made available together with interest thereon in respect of each
      day during the period commencing on the date such amount was so made available
      by the Administrative Agent until the date the Administrative Agent recovers
      such amount at a rate per annum equal to (x) in the case of payment by a Lender,
      the Federal Funds Effective Rate for such day for the first three days and,
      thereafter, the interest rate applicable to the relevant Loan or (y) in the
      case
      of payment by the Borrower, the interest rate applicable to the relevant
      Loan.

     

    2.18  Use
      of
      Proceeds.
      The
      proceeds of the Credit Extensions shall be used for general corporate purposes
      not prohibited by this Agreement.

     

    2.19  Facility
      LCs.

     

    2.19.1  Issuance.
      Each LC
      Issuer hereby agrees, on the terms and conditions set forth in this Agreement,
      to issue standby and commercial letters of credit (each, a “Facility
      LC”)
      and to
      renew, extend, increase, decrease or otherwise modify each Facility LC issued
      by
      it (“Modify,”
and
      each such action a “Modification”),
      from
      time to time from and including the date of this Agreement and prior to the
      Facility Termination Date upon the request of the Borrower; provided
      that
      immediately after each such Facility LC is issued or Modified, (i) the aggregate
      amount of the outstanding LC Obligations shall not exceed $250,000,000, (ii)
      the
      Aggregate Outstanding Credit Exposure shall not exceed the Aggregate Commitment
      and (iii) the aggregate amount of the outstanding LC Obligations issued by
      each
      LC Issuer shall not exceed such LC Issuer’s LC Commitment. No Facility LC shall
      have an expiry date later than the earlier of (x) the fifth Business Day prior
      to the Facility Termination Date and (y) one year after its issuance;
it
      being understood that
      if the
      Borrower so requests in any applicable Facility LC Application, each LC Issuer
      may, in its sole and absolute discretion, agree to issue a Facility LC that
      has
      automatic extension provisions, provided
      that any
      such Facility LC must permit such LC Issuer to prevent any such extension at
      least once in each twelve-month period (commencing with the date of issuance
      of
      such Facility LC) by giving notice to the beneficiary thereof not later than
      a
      day in each such twelve-month period to be agreed upon at the time such Facility
      LC is issued, and provided,
      further,
      that no
      Facility LC may have its expiry date extended to a date later than the date
      referred to in clause
      (x) above.

     

    2.19.2  Participations.
      Upon
      the issuance or Modification by an LC Issuer of a Facility LC in accordance
      with
      this Section
      2.19,
      such LC
      Issuer shall be deemed, without further action by any party hereto, to have
      unconditionally and irrevocably sold to each Lender, and each Lender shall
      be
      deemed, without further action by any party hereto, to have unconditionally
      and
      irrevocably purchased from such LC Issuer, a participation in such Facility
      LC
      (and each Modification thereof) and the related LC Obligations in proportion
      to
      its Pro Rata Share.

     

    2.19.3  Notice.
      Subject
      to Section
      2.19.1,
      the
      Borrower shall give the applicable LC Issuer notice prior to 10:00 a.m. (Chicago
      time) at least five Business Days prior to the proposed date of issuance or
      Modification of each Facility LC, specifying the beneficiary, the proposed
      date
      of issuance (or Modification) and the expiry date of such Facility LC, and
      describing the proposed terms of such Facility LC and the nature of the
      transactions proposed to be supported thereby. Upon receipt of such notice,
      such
      LC Issuer shall promptly notify the Administrative Agent, and the Administrative
      Agent shall promptly notify each Lender, of the contents thereof and of the
      amount of such Lender’s participation in such proposed Facility LC. The issuance
      or Modification by an LC Issuer of any Facility LC shall, in addition to the
      conditions precedent set forth in Article
      IV
      (the
      satisfaction of which such LC Issuer shall have no duty to ascertain), be
      subject to the conditions precedent that such Facility LC shall be satisfactory
      to such LC Issuer and that the Borrower shall have executed and delivered such
      application agreement and/or such other instruments and agreements relating
      to
      such Facility LC as such LC Issuer shall have reasonably requested (each, a
      “Facility
      LC Application”).
      In
      the event of any conflict between the terms of this Agreement and the terms
      of
      any Facility LC Application, the terms of this Agreement shall
      control.

     

    2.19.4  LC
      Fees.
      The
      Borrower shall pay to the Administrative Agent, for the account of the Lenders
      ratably in accordance with their respective Pro Rata Shares, (i) with
      respect to each standby Facility LC, a letter of credit fee at a per annum
      rate
      equal to the Applicable Margin for Eurodollar Loans in effect from time to
      time
      on the average daily undrawn stated amount under such standby Facility LC,
      such
      fee to be payable in arrears on each Payment Date and (ii) with respect to
      each commercial Facility LC, a one-time letter of credit fee in an amount equal
      to 0.35% of the initial stated amount (or, with respect to a Modification of
      any
      such commercial Facility LC which increases the stated amount thereof, such
      increase in the stated amount) thereof, such fee to be payable on the date
      of
      such issuance or increase (each such fee described in this sentence, an
“LC
      Fee”).
      The
      Borrower shall also pay to each LC Issuer for its own account (x) at the time
      of
      issuance of each Facility LC, a fronting fee in an amount to be agreed upon
      between such LC Issuer and the Borrower, and (y) documentary and processing
      charges in connection with the issuance or Modification of and draws under
      Facility LCs in accordance with such LC Issuer’s standard schedule for such
      charges as in effect from time to time.

     

    2.19.5  Administration;
      Reimbursement by Lenders.
      Upon
      receipt from the beneficiary of any Facility LC of any demand for payment under
      such Facility LC, the LC Issuer that issued such Facility LC shall notify the
      Administrative Agent and the Administrative Agent shall promptly notify the
      Borrower and each other Lender as to the amount to be paid by such LC Issuer
      as
      a result of such demand and the proposed payment date (the “LC
      Payment Date”).
      The
      responsibility of each LC Issuer to the Borrower and each Lender shall be only
      to determine that the documents (including each demand for payment) delivered
      under each Facility LC in connection with such presentment shall be in
      conformity in all material respects with such Facility LC. Each LC Issuer shall
      endeavor to exercise the same care in the issuance and administration of the
      Facility LCs issued by it as it does with respect to letters of credit in which
      no participations are granted, it being understood that in the absence of any
      gross negligence or willful misconduct by such LC Issuer, each Lender shall
      be
      unconditionally and irrevocably liable without regard to the occurrence of
      any
      Default or any condition precedent whatsoever, to reimburse such LC Issuer
      on
      demand for (i) such Lender’s Pro Rata Share of the amount of each payment made
      by such LC Issuer under each Facility LC issued by such LC Issuer to the extent
      such amount is not reimbursed by the Borrower pursuant to Section
      2.19.6
      below,
      plus (ii) interest on the foregoing amount to be reimbursed by such Lender,
      for
      each day from the date of such LC Issuer’s demand for such reimbursement (or, if
      such demand is made after 11:00 a.m. (Chicago time) on such date, from the
      next
      succeeding Business Day) to the date on which such Lender pays the amount to
      be
      reimbursed by it, at a rate of interest per annum equal to the Federal Funds
      Effective Rate for the first three days and, thereafter, at a rate of interest
      equal to the rate applicable to Floating Rate Advances. 

     

    2.19.6  Reimbursement
      by Borrower.
      The
      Borrower shall be irrevocably and unconditionally obligated to reimburse each
      LC
      Issuer on or before the applicable LC Payment Date for any amounts to be paid
      by
      such LC Issuer upon any drawing under any Facility LC issued by such LC Issuer,
      without presentment, demand, protest or other formalities of any kind;
provided
      that
      neither the Borrower nor any Lender shall hereby be precluded from asserting
      any
      claim for direct (but not consequential) damages suffered by the Borrower or
      such Lender to the extent, but only to the extent, caused by (i) the willful
      misconduct or gross negligence of such LC Issuer in determining whether a
      request presented under any Facility LC issued by it complied with the terms
      of
      such Facility LC or (ii) such LC Issuer’s failure to pay under any Facility LC
      issued by it after the presentation to it of a request strictly complying with
      the terms and conditions of such Facility LC. All such amounts paid by an LC
      Issuer and remaining unpaid by the Borrower shall bear interest, payable on
      demand, for each day until paid at a rate per annum equal to (x) the rate
      applicable to Floating Rate Advances for such day if such day falls on or before
      the applicable LC Payment Date and (y) the sum of 2% plus the rate applicable
      to
      Floating Rate Advances for such day if such day falls after such LC Payment
      Date. Each LC Issuer will pay to each Lender ratably in accordance with its
      Pro
      Rata Share all amounts received by it from the Borrower for application in
      payment, in whole or in part, of the Reimbursement Obligation in respect of
      any
      Facility LC issued by such LC Issuer, but only to the extent such Lender has
      made payment to such LC Issuer in respect of such Facility LC pursuant to
Section
      2.19.5.
      Subject
      to the terms and conditions of this Agreement (including without limitation
      the
      submission of a Borrowing Notice in compliance with Section
      2.8
      and the
      satisfaction of the applicable conditions precedent set forth in Article
      IV),
      the
      Borrower may request an Advance hereunder for the purpose of satisfying any
      Reimbursement Obligation. 

     

    2.19.7  Obligations
      Absolute.
      The
      Borrower’s obligations under this Section 2.19
      shall be
      absolute and unconditional under any and all circumstances and irrespective
      of
      any setoff, counterclaim or defense to payment which the Borrower may have
      or
      have had against any LC Issuer, any Lender or any beneficiary of a Facility
      LC.
      The Borrower further agrees with the LC Issuers and the Lenders that the LC
      Issuers and the Lenders shall not be responsible for, and the Borrower’s
      Reimbursement Obligation in respect of any Facility LC shall not be affected
      by,
      among other things, the validity or genuineness of documents or of any
      endorsements thereon, even if such documents should in fact prove to be in
      any
      or all respects invalid, fraudulent or forged, or any dispute between or among
      the Borrower, any of its Affiliates, the beneficiary of any Facility LC or
      any
      financing institution or other party to whom any Facility LC may be transferred
      or any claim or defense whatsoever of the Borrower or of any of its Affiliates
      against the beneficiary of any Facility LC or any such transferee. No LC Issuer
      shall be liable for any error, omission, interruption or delay in transmission,
      dispatch or delivery of any message or advice, however transmitted, in
      connection with any Facility LC. The Borrower agrees that any action taken
      or
      omitted by any LC Issuer or any Lender under or in connection with each Facility
      LC and the related drafts and documents, if done without gross negligence or
      willful misconduct, shall be binding upon the Borrower and shall not put any
      LC
      Issuer or any Lender under any liability to the Borrower. Nothing in this
Section
      2.19.7
      is
      intended to limit the right of the Borrower to make a claim against an LC Issuer
      for damages as contemplated by the proviso
      to the
      first sentence of Section
      2.19.6.

     

    2.19.8  Actions
      of LC Issuer.
      Each LC
      Issuer shall be entitled to rely, and shall be fully protected in relying,
      upon
      any Facility LC, draft, writing, resolution, notice, consent, certificate,
      affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
      statement, order or other document believed by it to be genuine and correct
      and
      to have been signed, sent or made by the proper Person or Persons, and upon
      advice and statements of legal counsel, independent accountants and other
      experts selected by such LC Issuer. Each LC Issuer shall be fully justified
      in
      failing or refusing to take any action under this Agreement unless it shall
      first have received such advice or concurrence of the Required Lenders as it
      reasonably deems appropriate or it shall first be indemnified to its reasonable
      satisfaction by the Lenders against any and all liability and expense which
      may
      be incurred by it by reason of taking or continuing to take any such action.
      Notwithstanding any other provision of this Section
      2.19,
      each LC
      Issuer shall in all cases be fully protected in acting, or in refraining from
      acting, under this Agreement in accordance with a request of the Required
      Lenders, and such request and any action taken or failure to act pursuant
      thereto shall be binding upon the Lenders and any future holders of a
      participation in any Facility LC.

     

    2.19.9  Indemnification.
      The
      Borrower hereby agrees to indemnify and hold harmless each Lender, each LC
      Issuer and the Administrative Agent, and their respective directors, officers,
      agents and employees from and against any and all claims and damages, losses,
      liabilities, costs or expenses which such Lender, such LC Issuer or the
      Administrative Agent may incur (or which may be claimed against such Lender,
      such LC Issuer or the Administrative Agent by any Person whatsoever) by reason
      of or in connection with the issuance, execution and delivery or transfer of
      or
      payment or failure to pay under any Facility LC or any actual or proposed use
      of
      any Facility LC, including, without limitation, any claims, damages, losses,
      liabilities, costs or expenses which any LC Issuer may incur by reason of or
      in
      connection with (i) the failure of any other Lender to fulfill or comply
      with its obligations to the LC Issuers hereunder (but nothing herein contained
      shall affect any rights the Borrower may have against any defaulting Lender)
      or
      (ii) by reason of or on account of any LC Issuer issuing any Facility LC
      which specifies that the term “Beneficiary” included therein includes any
      successor by operation of law of the named Beneficiary, but which Facility
      LC
      does not require that any drawing by any such successor Beneficiary be
      accompanied by a copy of a legal document, satisfactory to such LC Issuer,
      evidencing the appointment of such successor Beneficiary; provided
      that the
      Borrower shall not be required to indemnify any Lender, any LC Issuer or the
      Administrative Agent for any claims, damages, losses, liabilities, costs or
      expenses to the extent, but only to the extent, caused by (x) the willful
      misconduct or gross negligence of such LC Issuer in determining whether a
      request presented under any Facility LC complied with the terms of such Facility
      LC or (y) such LC Issuer’s failure to pay under any Facility LC after the
      presentation to it of a request strictly complying with the terms and conditions
      of such Facility LC. Nothing in this Section
      2.19.9
      is
      intended to limit the obligations of the Borrower under any other provision
      of
      this Agreement.

     

    2.19.10  Lenders’
      Indemnification.
      Each
      Lender shall, ratably in accordance with its Pro Rata Share, indemnify each
      LC
      Issuer, its affiliates and their respective directors, officers, agents and
      employees (to the extent not reimbursed by the Borrower) against any cost,
      expense (including reasonable counsel fees and disbursements), claim, demand,
      action, loss or liability (except such as result from such indemnitees’ gross
      negligence or willful misconduct or such LC Issuer’s failure to pay under any
      Facility LC after the presentation to it of a request strictly complying with
      the terms and conditions of the Facility LC) that such indemnitees may suffer
      or
      incur in connection with this Section
      2.19
      or any
      action taken or omitted by such indemnitees hereunder.

     

    2.19.11  Facility
      LC Collateral Account.
      To the
      extent provided in Section
      8.1,
      the
      Required Lenders or the Administrative Agent at the direction of the Required
      Lenders may demand that the Borrower immediately pay to the Administrative
      Agent
      an amount equal to the aggregate outstanding amount of the LC Obligations and
      the Borrower shall immediately upon any such demand make such payment to the
      Administrative Agent to be held in a
      special
      collateral account (the “Facility
      LC Collateral Account”)
      at the
      Administrative Agent’s office at the address specified pursuant to Article
      XIV,
      in the
      name of the Borrower but under the sole dominion and control of the
      Administrative Agent, for the benefit of the Lenders and in which the Borrower
      shall have no interest other than as set forth in Section
      8.1.
      The
      Borrower hereby pledges, assigns and grants to the Administrative Agent, on
      behalf of and for the ratable benefit of the Lenders and the LC Issuers, a
      security interest in all of the Borrower’s right, title and interest in and to
      all funds which may from time to time be on deposit in the Facility LC
      Collateral Account to secure the prompt and complete payment and performance
      of
      the Obligations. The Administrative Agent will invest any funds on deposit
      from
      time to time in the Facility LC Collateral Account in certificates of deposit
      of
      JPMCB having a maturity not exceeding 30 days. Nothing in this Section
      2.19.11
      shall
      limit the right of the Administrative Agent to release any funds held in the
      Facility LC Collateral Account in each case other than as required by
Section
      8.1.

     

    2.19.12  Rights
      as a Lender.
      In its
      capacity as a Lender, each LC Issuer shall have the same rights and obligations
      as any other Lender.

     

    2.20  Extension
      of Facility Termination Date.
      

     

    2.20.1  The
      Borrower may request a one year extension of the then-scheduled Facility
      Termination Date by submitting a request for an extension to the Administrative
      Agent (an “Extension
      Request”)
      no
      more than 90 days prior to any anniversary of the date of this Agreement;
provided
      that the
      Borrower may make no more than two such requests. Any Extension Request shall
      specify the date (which must be at least 30 days after the Extension Request
      is
      delivered to the Administrative Agent) as of which the Lenders must respond
      to
      such Extension Request (the “Response
      Date”).
      Promptly upon receipt of an Extension Request, the Administrative Agent shall
      notify each Lender of the contents thereof. Each Lender shall, not later than
      the Response Date for any Extension Request, deliver a written response to
      the
      Administrative Agent approving or rejecting such Extension Request (and any
      Lender that fails to deliver such a response by the Response Date shall be
      deemed to have rejected such Extension Request). If Lenders that have Pro Rata
      Shares of more than 50% approve an Extension Request (which approval shall
      be at
      the sole discretion of each Lender), then the scheduled Facility Termination
      Date for each such approving Lender shall be extended to the date that is one
      year after the previously scheduled Facility Termination Date (but the scheduled
      Facility Termination Date for each other Lender shall remain unchanged). If
      Lenders that have Pro Rata Shares of 50% or more reject an Extension Request,
      then the Facility Termination Date for all Lenders shall remain
      unchanged.

     

    2.20.2  If
      a
      Lender does not approve an Extension Request (any such Lender, a “Non-Consenting
      Lender”),
      the
      Borrower may elect to replace such Non-Consenting
      Lender
      as
      a Lender party to this Agreement, provided
      that no
      Default or Unmatured Default shall have occurred and be continuing at the time
      of such replacement, and provided further
      that,
      concurrently with such replacement, another bank or other entity reasonably
      satisfactory to the Borrower, the LC Issuers and the Administrative Agent shall
      enter into an assignment agreement substantially in the form of Exhibit
      E
      in
      compliance with the requirements of Section
      12.3.

     

    2.20.3  Notwithstanding
      the foregoing, no extension of the Facility Termination Date pursuant to this
      Section
      2.20
      shall
      become effective as to any Lender unless (a) no Default or Unmatured Default
      shall have occurred and be continuing as of the date of such extension; and
      (b)
      the representations and warranties in Article
      V
      shall be
      true and correct as of the date of such extension (except to the extent that
      any
      such representation or warranty is expressly stated to have been made as of
      a
      specific date, in which case such representation or warranty shall be true
      and
      correct as of such specific date).

     

    ARTICLE
      III  

     

    YIELD
      PROTECTION; TAXES

     

    3.1  Yield
      Protection.
      If, on
      or after the date of this Agreement, the adoption of any law or any governmental
      or quasi-governmental rule, regulation, policy, guideline or directive (whether
      or not having the force of law), or any change in the interpretation or
      administration thereof by any governmental or quasi-governmental authority,
      central bank or comparable agency charged with the interpretation or
      administration thereof, or compliance by any Lender or applicable Lending
      Installation or any LC Issuer with any request or directive (whether or not
      having the force of law) of any such authority, central bank or comparable
      agency:

     

    (i)  subjects
      any Lender or any applicable Lending Installation or any LC Issuer to any Taxes,
      or changes the basis of taxation of payments (other than with respect to
      Excluded Taxes) to any Lender or any LC Issuer in respect of its Eurodollar
      Loans, Facility LCs or participations therein, or

     

    (ii)  imposes
      or increases or deems applicable any reserve, assessment, insurance charge,
      special deposit or similar requirement against assets of, deposits with or
      for
      the account of, or credit extended by, any Lender or any applicable Lending
      Installation or any LC Issuer (other than reserves and assessments taken into
      account in determining the interest rate applicable to Eurodollar Advances),
      or

     

    (iii)  imposes
      any other condition the result of which is to increase the cost to any Lender
      or
      any applicable Lending Installation or any LC Issuer of making, funding or
      maintaining its Eurodollar Loans, or of issuing or participating in Facility
      LCs, or reduces any amount receivable by any Lender or any applicable Lending
      Installation or any LC Issuer in connection with its Eurodollar Loans, Facility
      LCs or participations therein, or requires any Lender or any applicable Lending
      Installation or any LC Issuer to make any payment calculated by reference to
      the
      amount of Eurodollar Loans, Facility LCs or participations therein held or
      interest or fees received by it, by an amount deemed material by such Lender
      or
      such LC Issuer, as the case may be,

     

    and
      the
      result of any of the foregoing is to increase the cost to such Lender or
      applicable Lending Installation or such LC Issuer, as the case may be, of making
      or maintaining its Eurodollar Loans or Commitment or of issuing or participating
      in Facility LCs, or to reduce the return received by such Lender or applicable
      Lending Installation or such LC Issuer, as the case may be, in connection with
      such Eurodollar Loans, Commitment, Facility LCs or participations therein,
      then,
      within 15 days of demand by such Lender or such LC Issuer, as the case may
      be,
      the Borrower shall pay such Lender or such LC Issuer, as the case may be, such
      additional amount or amounts as will compensate such Lender or such LC Issuer,
      as the case may be, for such increased cost or reduction in amount
      received.

     

    3.2  Changes
      in Capital Adequacy Regulations.
      If a
      Lender or an LC Issuer determines the amount of capital required or expected
      to
      be maintained by such Lender or such LC Issuer, any Lending Installation of
      such
      Lender or such LC Issuer, or any corporation controlling such Lender or such
      LC
      Issuer, is increased as a result of a Change, then, within 15 days of demand
      by
      such Lender or such LC Issuer, the Borrower shall pay such Lender or such LC
      Issuer the amount necessary to compensate for any shortfall in the rate of
      return on the portion of such increased capital which such Lender or such LC
      Issuer determines is attributable to this Agreement, its Outstanding Credit
      Exposure or its Commitment to make Loans and issue or participate in Facility
      LCs, as the case may be, hereunder (after taking into account such Lender’s or
      such LC Issuer’s policies as to capital adequacy). “Change”
means
      (i) any change after the date of this Agreement in the Risk-Based Capital
      Guidelines or (ii) any adoption of or change in any other law, governmental
      or
      quasi-governmental rule, regulation, policy, guideline, interpretation or
      directive (whether or not having the force of law) after the date of this
      Agreement which affects the amount of capital required or expected to be
      maintained by any Lender or any LC Issuer or any Lending Installation or any
      corporation controlling any Lender or any LC Issuer. “Risk-Based
      Capital Guidelines”
means
      (i) the risk-based capital guidelines in effect in the United States on the
      date
      of this Agreement, including transition rules, and (ii) the corresponding
      capital regulations promulgated by regulatory authorities outside the United
      States implementing the July 1988 report of the Basle Committee on Banking
      Regulation and Supervisory Practices entitled “International Convergence of
      Capital Measurements and Capital Standards,” including transition rules, and any
      amendments to such regulations adopted prior to the date of this
      Agreement.

     

    3.3  Availability
      of Types of Advances.
      If (i)
      any Lender determines that maintenance of its Eurodollar Loans at a suitable
      Lending Installation would violate any applicable law, rule, regulation, or
      directive, whether or not having the force of law, or (ii) the Required Lenders
      determine that (a) deposits of a type and maturity appropriate to match fund
      Eurodollar Advances are not available or (b) the interest rate applicable to
      a
      Type of Advance does not accurately reflect the cost of making or maintaining
      such Advance, then the Administrative Agent shall suspend the availability
      of
      the affected Type of Advance and, in the case of clause
      (i),
      require
      any affected Eurodollar Advances to be repaid or converted to Floating Rate
      Advances, subject to the payment of any funding indemnification amounts required
      by Section 3.4.

     

    3.4  Funding
      Indemnification.
      If any
      payment of a Eurodollar Advance occurs on a date which is not the last day
      of
      the applicable Interest Period, whether because of acceleration, prepayment
      or
      otherwise, or a Eurodollar Advance is not made on the date specified by the
      Borrower for any reason other than default by the Lenders, the Borrower will
      indemnify each Lender for any loss or cost incurred by it resulting therefrom,
      including, without limitation, any loss or cost in liquidating or employing
      deposits acquired to fund or maintain such Eurodollar Advance.

     

    3.5  Taxes.
      (i) 
      All payments by the Borrower to or for the account of any Lender, any LC Issuer
      or the Administrative Agent hereunder or under any Note or Facility LC
      Application shall be made free and clear of and without deduction for any and
      all Taxes. If the Borrower shall be required by law to deduct any Taxes from
      or
      in respect of any sum payable hereunder to any Lender, any LC Issuer or the
      Administrative Agent, (a) the sum payable shall be increased as necessary so
      that after making all required deductions (including deductions applicable
      to
      additional sums payable under this Section 3.5)
      such
      Lender, such LC Issuer or the Administrative Agent (as the case may be)
      receives an amount equal to the sum it would have received had no such
      deductions been made, (b) the Borrower shall make such deductions,
      (c) the Borrower shall pay the full amount deducted to the relevant
      authority in accordance with applicable law and (d) the Borrower shall
      furnish to the Administrative Agent the original copy of a receipt evidencing
      payment thereof within 30 days after such payment is made.

     

    (ii)  In
      addition, the Borrower hereby agrees to pay any present or future stamp or
      documentary taxes and any other excise or property taxes, charges or similar
      levies which arise from any payment made hereunder or under any Note or Facility
      LC Application or from the execution or delivery of, or otherwise with respect
      to, this Agreement or any Note or Facility LC Application (“Other
      Taxes”).

     

    (iii)  The
      Borrower hereby agrees to indemnify the Administrative Agent, each LC Issuer
      and
      each Lender for the full amount of Taxes or Other Taxes (including, without
      limitation, any Taxes or Other Taxes imposed on amounts payable under this
      Section 3.5)
      paid by
      the Administrative Agent, such LC Issuer or such Lender as a result of its
      Commitment, any Loans made by it hereunder, or otherwise in connection with
      its
      participation in this Agreement and any liability (including penalties, interest
      and expenses) arising therefrom or with respect thereto. Payments due under
      this
      indemnification shall be made within 30 days of the date the Administrative
      Agent, such LC Issuer or such Lender makes demand therefor pursuant to
Section 3.6.

     

    (iv)  Each
      Lender that is not incorporated under the laws of the United States of America
      or a state thereof (each a “Non-U.S.
      Lender”)
      agrees
      that it will, not less than ten Business Days after the date of this Agreement
      (or in the case of a Non-U.S. Lender that becomes a party hereto after the
      date
      hereof, within 10 Business Days of the effective date of the assignment by
      which
      it becomes a Lender), (i) deliver to each of the Borrower and the Administrative
      Agent two duly completed copies of United States Internal Revenue Service Form
      W-8ECI or W-8BEN, certifying in either case that such Lender is entitled to
      receive payments under this Agreement without deduction or withholding of any
      United States federal income taxes, and (ii) deliver to each of the Borrower
      and
      the Administrative Agent a United States Internal Revenue Form W-8 or W-9,
      as
      the case may be, and certify that it is entitled to an exemption from
      United States backup withholding tax. Each Non-U.S. Lender further undertakes
      to
      deliver to each of the Borrower and the Administrative Agent (x) renewals
      or additional copies of such form (or any successor form) on or before the
      date
      that such form expires or becomes obsolete, and (y) after the occurrence of
      any event requiring a change in the most recent forms so delivered by it, such
      additional forms or amendments thereto as may be reasonably requested by
      the Borrower or the Administrative Agent. All forms or amendments described
      in
      the preceding sentence shall certify that such Lender is entitled to receive
      payments under this Agreement without deduction or withholding of any United
      States federal income taxes, unless an
      event
      (including without limitation any change in treaty, law or regulation) has
      occurred prior to the date on which any such delivery would otherwise be
      required which renders all such forms inapplicable or which would prevent such
      Lender from duly completing and delivering any such form or amendment with
      respect to it and such Lender advises the Borrower and the Administrative Agent
      that it is not capable of receiving payments without any deduction or
      withholding of United States federal income tax.

     

    (v)  For
      any
      period during which a Non-U.S. Lender has failed to provide the Borrower with
      an
      appropriate form pursuant to clause
      (iv)
      above
      (unless such failure is due to a change in treaty, law or regulation, or any
      change in the interpretation or administration thereof by any governmental
      authority, occurring subsequent to the date on which a form originally was
      required to be provided), such Non-U.S. Lender shall not be entitled to
      indemnification under this Section 3.5
      with
      respect to Taxes imposed by the United States; provided that,
      should a Non-U.S. Lender which is otherwise exempt from or subject to a reduced
      rate of withholding tax become subject to Taxes because of its failure to
      deliver a form required under clause
      (iv)
      above,
      the Borrower shall take such steps as such Non-U.S. Lender shall reasonably
      request to assist such Non-U.S. Lender to recover such Taxes.

     

    (vi)  Any
      Lender that is entitled to an exemption from or reduction of withholding tax
      with respect to payments under this Agreement or any Note pursuant to the law
      of
      any relevant jurisdiction or any treaty shall deliver to the Borrower (with
      a
      copy to the Administrative Agent), at the time or times prescribed by applicable
      law, such properly completed and executed documentation prescribed by applicable
      law as will permit such payments to be made without withholding or at a reduced
      rate.

     

    (vii)  If
      the
      U.S. Internal Revenue Service or any other governmental authority of the United
      States or any other country or any political subdivision thereof asserts a
      claim
      that the Administrative Agent did not properly withhold tax from amounts paid
      to
      or for the account of any Lender (because the appropriate form was not delivered
      or properly completed, because such Lender failed to notify the Administrative
      Agent of a change in circumstances which rendered its exemption from withholding
      ineffective, or for any other reason), such Lender shall indemnify the
      Administrative Agent fully for all amounts paid, directly or indirectly, by
      the
      Administrative Agent as tax, withholding therefor, or otherwise, including
      penalties and interest, and including taxes imposed by any jurisdiction on
      amounts payable to the Administrative Agent under this subsection, together
      with
      all costs and expenses related thereto (including attorneys’ fees and time
      charges of attorneys for the Administrative Agent, which attorneys may be
      employees of the Administrative Agent). The obligations of the Lenders under
      this Section
      3.5(vii)
      shall
      survive the payment of the Obligations and termination of this
      Agreement.

     

    3.6  Lender
      Statements; Survival of Indemnity.
      To the
      extent reasonably possible and upon the request of the Borrower, each Lender
      shall designate an alternate Lending Installation with respect to its Eurodollar
      Loans to reduce any liability of the Borrower to such Lender under Sections
      3.1,
      3.2
      and
3.5
      or to
      avoid the unavailability of Eurodollar Advances under Section 3.3,
      so long
      as such designation is not, in the judgment of such Lender, disadvantageous
      to
      such Lender. Each Lender shall deliver a written statement of such Lender to
      the
      Borrower (with a copy to the Administrative Agent) as to the amount due, if
      any,
      under Section 3.1,
      3.2,
      3.4
      or
3.5.
      Such
      written statement shall set forth in reasonable detail the calculations upon
      which such Lender determined such amount and shall be final, conclusive and
      binding on the Borrower in the absence of manifest error. Determination of
      amounts payable under such Sections in connection with a Eurodollar Loan shall
      be calculated as though each Lender funded its Eurodollar Loan through the
      purchase of a deposit of the type and maturity corresponding to the deposit
      used
      as a reference in determining the Eurodollar Rate applicable to such Loan,
      whether in fact that is the case or not. Unless otherwise provided herein,
      the
      amount specified in the written statement of any Lender shall be payable on
      demand after receipt by the Borrower of such written statement. The obligations
      of the Borrower under Sections
      3.1,
      3.2,
      3.4
      and
3.5
      shall
      survive payment of the Obligations and termination of this
      Agreement.

     

    3.7  Replacement
      of Lenders.
      If the
      Borrower is required to pay any additional amount to any Lender or any
      governmental authority for the account of any Lender pursuant to Section 3.5,
      then
      the Borrower may, at its sole expense and effort, upon notice to such Lender
      and
      the Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
Section 12.3),
      all
      its interests, rights and obligations under this Agreement 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 received the prior written consent of the Administrative
      Agent and each LC Issuer, which consents shall not unrea-sonably be withheld
      or
      delayed, (ii) such Lender shall have received payment of an amount equal to
      the
      outstanding principal of its Loans and participations in Facility LCs and LC
      Obligations, accrued interest thereon, accrued fees and all other amounts
      payable to it hereunder, 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) and (iii) such assignment will result in a reduction in
      payments made under Section
      3.5.
      A
      Lender shall not be required to make any such assignment and 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.

     

    ARTICLE
      IV  

     

    CONDITIONS
      PRECEDENT

     

    4.1  Initial
      Credit Extension.
      The
      Lenders shall not be required to make the initial Credit Extension hereunder
      unless the Borrower has furnished to the Administrative Agent (with sufficient
      copies for the Lenders, in the case of all documents):

     

    (i)  Copies
      of
      the articles or certificate of incorporation of the Borrower and each Guarantor,
      as well as any other information required by Section 326 of the USA PATRIOT
      ACT
      or necessary for the Administrative Agent or any Lender to verify the identity
      of the Borrower and each Guarantor as required by Section 326 of the USA PATRIOT
      Act, together with all amendments, and a certificate of existence/good standing,
      as applicable, each certified by the appropriate governmental officer in its
      jurisdiction of incorporation.

     

    (ii)  Copies,
      certified by the Secretary or Assistant Secretary of the Borrower and each
      Guarantor, of its by-laws and of its Board of Directors’ resolutions and of
      resolutions or actions of any other body authorizing the execution of the Loan
      Documents.

     

    (iii)  An
      incumbency certificate, executed by the Secretary or Assistant Secretary of
      the
      Borrower and each Guarantor, which shall identify by name and title and bear
      the
      signatures of the Authorized Officers and any other officers of the Borrower
      and
      each Guarantor authorized to sign the Loan Documents, upon which certificate
      the
      Administrative Agent and the Lenders shall be entitled to rely until informed
      of
      any change in writing by the Borrower or the applicable Guarantor.

     

    (iv)  A
      certificate, signed by the chief financial officer or treasurer of the Borrower,
      stating that on the initial Credit Extension Date no Default or Unmatured
      Default has occurred and is continuing.

     

    (v)  A
      written
      opinion of counsel to the Borrower and the Guarantors, addressed to the
      Administrative Agent and the Lenders in the form approved by the Administrative
      Agent.

     

    (vi)  Notes
      payable to the order of each of the Lenders.

     

    (vii)  Written
      money transfer instructions, in substantially the form of Exhibit
      C,
      addressed to the Administrative Agent and signed by an Authorized Officer of
      the
      Borrower, together with such other related money transfer authorizations as
      the
      Administrative Agent may have reasonably requested.

     

    (viii)  The
      insurance certificate described in Section 5.18.

     

    (ix)  The
      fees
      due and payable in accordance with the Fee Letters.

     

    (x)  If
      the
      initial Credit Extension will be the issuance of a Facility LC, a properly
      completed Facility LC Application.

     

    (xi)  Evidence
      that the Existing Credit Agreement has been terminated, and that all amounts
      outstanding thereunder have been paid in full.

     

    (xii)  Such
      other documents as any Lender or its counsel may have reasonably
      requested.

     

    4.2  Each
      Credit Extension.
      The
      Lenders shall not be required to make any Credit Extension, unless on the
      applicable Credit Extension Date:

     

    (i)  There
      exists no Default or Unmatured Default.

     

    (ii)  The
      representations and warranties contained in Article
      V
      are true
      and correct as of such Credit Extension Date except to the extent any such
      representation or warranty is stated to relate solely to an earlier date, in
      which case such representation or warranty shall have been true and correct
      on
      and as of such earlier date; provided
      that
      this Section
      4.2(ii)
      shall
      not apply to the representations and warranties set forth in Section
      5.5,
      clause
      (i)
      of the
      first sentence of Section
      5.7,
      the
      second sentence of Section
      5.7
      and
Section
      5.16.

     

    Each
      Borrowing Notice or request for issuance or amendment or extension of a Facility
      LC with respect to each such Credit Extension shall constitute a representation
      and warranty by the Borrower that the conditions contained in Sections
      4.2(i)
      and
(ii)
      have
      been satisfied. Any Lender or any LC Issuer may require a duly completed
      compliance certificate in substantially the form of Exhibit
      B
      as a
      condition to making a Credit Extension.

     

    ARTICLE
      V  

     

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower and each Guarantor represents and warrants to the Lenders
      that:

     

    5.1  Existence
      and Standing.
      Each of
      the Guarantors, the Borrower and the Subsidiaries of the Borrower is a
      corporation, partnership (in the case of Subsidiaries only) or limited liability
      company duly incorporated or organized, as the case may be, validly
      existing and (to the extent such concept applies to such entity) in good
      standing under the laws of its jurisdiction of incorporation or organization
      and
      has all requisite authority to conduct its business in each jurisdiction in
      which its business is conducted.

     

    5.2  Authorization
      and Validity.
      Each of
      the Borrower and the Guarantors has the power and authority and legal right
      to
      execute and deliver the Loan Documents to which it is a party and to perform
      its
      obligations thereunder. The execution and delivery by each of the Borrower
      and
      each Guarantor of the Loan Documents to which it is a party and the performance
      of its obligations thereunder have been duly authorized by proper corporate
      proceedings, and the Loan Documents to which each of the Borrower and any
      Guarantor is a party constitute legal, valid and binding obligations of the
      Borrower and the Guarantors enforceable against the Borrower and the Guarantors
      in accordance with their terms, except as enforceability may be limited by
      bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally.

     

    5.3  No Conflict;
      Government Consent.
      Neither
      the execution or delivery by the Borrower and the Guarantors of the Loan
      Documents to which it is a party, nor the consummation of the transactions
      therein contemplated, nor compliance with the provisions thereof will violate
      (i) any law, rule, regulation, order, writ, judgment, injunction, decree or
      award binding on the Borrower, any Guarantor or any of their Subsidiaries,
      (ii)
      the Borrower’s, any Guarantor’s or any of their Subsidiary’s articles or
      certificate of incorporation, partnership agreement, certificate of partnership,
      articles or certificate of organization, by-laws, or operating or other
      management agreement, as the case may be, or (iii) the provisions of any
      indenture, instrument or agreement to which the Borrower, any Guarantor or
      any
      of their Subsidiaries is a party or is subject, or by which it, or its Property,
      is bound, or conflict with or constitute a default thereunder, or result in,
      or
      require, the creation or imposition of any Lien in, of or on the Property of
      the
      Borrower, any Guarantor or any such Subsidiary pursuant to the terms of any
      such
      indenture, instrument or agreement. No order, consent, adjudication, approval,
      license, authorization, or validation of, or filing, recording or registration
      with, or exemption by, or other action in respect of any governmental or public
      body or authority, or any subdivision thereof, which has not been obtained
      by
      the Borrower, any Guarantor or any of their Subsidiaries, is required to be
      obtained by the Borrower, any Guarantor or any of their Subsidiaries in
      connection with the execution and delivery of the Loan Documents, the borrowings
      under this Agreement, the payment and performance by the Borrower of the
      Obligations or the legality, validity, binding effect or enforceability of
      any
      of the Loan Documents.

     

    5.4  Financial
      Statements.
      The
      December 31, 2004 consolidated financial statements of the Borrower and its
      Subsidiaries heretofore delivered to the Lenders were prepared in accordance
      with generally accepted accounting principles in effect on the date such
      statements were prepared and fairly present the consolidated financial condition
      and operations of the Borrower and its Subsidiaries at such date and the
      consolidated results of their operations for the period then ended.

     

    5.5  Material
      Adverse Change.
      Since
      December 31, 2004 there has been no change in the business, Property, condition
      (financial or otherwise) or results of operations of the Borrower and its
      Subsidiaries which could reasonably be expected to have a Material Adverse
      Effect.

     

    5.6  Taxes.
      The
      Borrower and its Subsidiaries have filed all United States federal tax returns
      and all other tax returns which are required to be filed and have paid all
      taxes
      due pursuant to said returns or pursuant to any assessment received by the
      Borrower or any of its Subsidiaries, except such taxes, if any, as are being
      contested in good faith and as to which adequate reserves have been provided
      in
      accordance with Agreement Accounting Principles and as to which no Lien exists.
      The Federal income tax liabilities of Indiana Energy, Inc., and its
      Subsidiaries, a predecessor of the Parent, and SIGCORP, Inc., and its
      Subsidiaries, a predecessor of the Parent, have been finally determined (whether
      by reason of completed audits or the statute of limitations having run) for
      all
      fiscal years up to and including the fiscal years ended March 31, 2000 and
      December 31, 1999, respectively. No tax Liens have been filed and no claims
      are
      being asserted with respect to any such taxes. The charges, accruals and
      reserves on the books of the Borrower and its Subsidiaries in respect of any
      taxes or other governmental charges are adequate.

     

    5.7  Litigation
      and Contingent Obligations.
      Except
      as set forth on Schedule
      5.7,
      there
      is no litigation, arbitration, governmental investigation, proceeding or
      inquiry pending or, to the knowledge of any of their officers, threatened
      against or affecting the Borrower or any of its Subsidiaries which (i) could
      reasonably be expected to have a Material Adverse Effect or (ii) seeks to
      prevent, enjoin or delay the making of any Credit Extensions. Other than any
      liability incident to any litigation, arbitration or proceeding which (i) could
      not reasonably be expected to have a Material Adverse Effect, (ii) is disclosed
      in the Form 10-K of the Parent for the fiscal year ended December 31, 2004
      or
      (iii) is set forth on Schedule
      5.7,
      the
      Borrower has no material contingent obligations not provided for or
      disclosed in the financial statements referred to in Section 5.4.

     

    5.8  Subsidiaries.
      Schedule
      1
      contains
      an accurate list of all Subsidiaries of the Borrower as of the date of this
      Agreement, setting forth their respective jurisdictions of organization and
      the
      percentage of their respective capital stock or other ownership interests owned
      by the Borrower or other Subsidiaries. All of the issued and outstanding shares
      of capital stock or other ownership interests of such Subsidiaries have been
      (to
      the extent such concepts are relevant with respect to such ownership interests)
      duly authorized and issued and are fully paid and non-assessable.

     

    5.9  ERISA.
      Neither
      the Borrower nor any other member of the Controlled Group has incurred, or
      is
      reasonably expected to incur, any withdrawal liability to Multiemployer Plans
      that would reasonably be expected to have a Material Adverse Effect. Each Plan
      complies in all material respects with all applicable requirements of law and
      regulations, no Reportable Event has occurred with respect to any Plan,
      neither the Borrower nor any other member of the Controlled Group has withdrawn
      from any Plan or initiated steps to do so, and no steps have been taken to
      reorganize or terminate any Plan.

     

    5.10  Accuracy
      of Information.
      No information, exhibit or report furnished by the Borrower or any of its
      Subsidiaries to the Administrative Agent or to any Lender in connection with
      the
      negotiation of, or compliance with, the Loan Documents contained any material
      misstatement of fact or omitted to state a material fact or any fact necessary
      to make the statements contained therein not misleading.

     

    5.11  Regulation
      U.
      Margin
      stock (as defined in Regulation U) constitutes less than 25% of the value of
      those assets of the Borrower and its Subsidiaries which are subject to any
      limitation on sale, pledge, or other restriction hereunder.

     

    5.12  Material
      Agreements.
      Neither
      the Borrower nor any Subsidiary thereof is a party to any agreement or
      instrument or subject to any charter or other corporate restriction which could
      reasonably be expected to have a Material Adverse Effect. Neither the Borrower
      nor any Subsidiary thereof is in default in the performance, observance or
      fulfillment of any of the obligations, covenants or conditions contained in
      (i)
      any agreement to which it is a party, which default could reasonably be expected
      to have a Material Adverse Effect or (ii) any agreement or instrument evidencing
      or governing Indebtedness.

     

    5.13  Compliance
      With Laws.
      The
      Borrower and its Subsidiaries have complied with all applicable statutes, rules,
      regulations, orders and restrictions of any domestic or foreign government
      or
      any instrumentality or agency thereof having jurisdiction over the conduct
      of
      their respective businesses or the ownership of their respective Property except
      for any failure to comply with any of the foregoing which could not reasonably
      be expected to have a Material Adverse Effect.

     

    5.14  Ownership
      of Properties.
      Except
      as set forth on Schedule
      2,
      on the
      date of this Agreement, the Borrower and its Subsidiaries will have good title,
      free of all Liens other than those permitted by Section 6.13,
      to all
      of the Property and assets reflected in the Borrower’s most recent consolidated
      financial statements provided to the Administrative Agent as owned by the
      Borrower and its Subsidiaries.

     

    5.15  Plan
      Assets; Prohibited Transactions.
      The
      Borrower is not an entity deemed to hold “plan assets” within the meaning of 29
      C.F.R. § 2510.3-101 of an employee benefit plan (as defined in
      Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan
      (within the meaning of Section 4975 of the Code), and neither the execution
      of this Agreement nor the making of Credit Extensions hereunder gives rise
      to a
      prohibited transaction within the meaning of Section 406 of ERISA or
      Section 4975 of the Code.

     

    5.16  Environmental
      Matters.
      In the
      ordinary course of its business, the officers of the Borrower consider the
      effect of Environmental Laws on the business of the Borrower and its
      Subsidiaries, in the course of which they identify and evaluate potential risks
      and liabilities accruing to the Borrower due to Environmental Laws. On the
      basis
      of this consideration, the Borrower has concluded that, except as set forth
      on
Schedule
      5.16,
      Environmental Laws cannot reasonably be expected to have a Material Adverse
      Effect. Except as set forth on Schedule
      5.16,
      neither
      the Borrower nor any of its Subsidiaries has received any notice to the effect
      that its operations are not in material compliance with any of the requirements
      of applicable Environmental Laws or are the subject of any federal or state
      investigation evaluating whether any remedial action is needed to respond to
      a
      release of any toxic or hazardous waste or substance into the environment,
      which
      non-compliance or remedial action could reasonably be expected to have a
      Material Adverse Effect.

     

    5.17  Investment
      Company Act.
      Neither
      the Borrower nor any Subsidiary thereof is an “investment company” or a company
“controlled” by an “investment company”, within the meaning of the Investment
      Company Act of 1940, as amended.

     

    5.18  Insurance.
      The
      certificate signed by the President, Chief Financial Officer, Secretary or
      Treasurer of the Borrower, that attests to the existence and adequacy of, and
      summarizes, the property and casualty insurance program carried by the Borrower
      with respect to itself and its Subsidiaries and that has been furnished by
      the
      Borrower to the Administrative Agent and the Lenders, is complete and accurate
      as of the date of this Agreement. This summary includes the insurer’s or
      insurers’ name(s), policy number(s), expiration date(s), amount(s) of coverage,
      type(s) of coverage, exclusion(s), and deductibles. This summary also includes
      similar information, and describes any reserves, relating to any self-insurance
      program that is in effect.

     

    5.19  Solvency. (i)
      Immediately after the consummation of the transactions to occur on the date
      hereof and immediately following the making of each Credit Extension, if any,
      made on the date hereof and after giving effect to the application of the
      proceeds of such Credit Extension, (a) the fair value of the assets of the
      Borrower and its Subsidiaries on a consolidated basis, at a fair valuation,
      will
      exceed the debts and liabilities, subordinated, contingent or otherwise, of
      the
      Borrower and its Subsidiaries on a consolidated basis; (b) the present fair
      saleable value of the property of the Borrower and its Subsidiaries on a
      consolidated basis will be greater than the amount that will be required to
      pay
      the probable liability of the Borrower and its Subsidiaries on a consolidated
      basis on their debts and other liabilities, subordinated, continent or
      otherwise, as such debts and other liabilities become absolute and matured;
      (c)
      the Borrower and its Subsidiaries on a consolidated basis will be able to pay
      their debts and liabilities, subordinated, contingent or otherwise, as such
      debts and liabilities become absolute and matured; and (d) the Borrower and
      its
      Subsidiaries on a consolidated basis will not have unreasonably small capital
      with which to conduct the businesses in which they are engaged as such
      businesses are now conducted and are proposed to be conducted after the date
      hereof.

     

    (ii)  The
      Borrower does not intend to, or to permit any of its Subsidiaries to, and does
      not believe that it or any of its Subsidiaries will, incur debts beyond its
      ability to pay such debts as they mature, taking into account the timing of
      and
      amounts of cash to be received by it or any such Subsidiary and the timing
      of
      the amounts of cash to be payable on or in respect of its Indebtedness or the
      Indebtedness of any such Subsidiary.

     

    5.20  Public
      Utility Holding Company Act.
      Neither
      the Borrower nor any Subsidiary is a “registered holding company” or a
“subsidiary company” of a “registered holding company”, or an “affiliate” of a
“registered holding company” or of a “subsidiary company” of a “registered
      holding company”, within the meaning of the Public Utility Holding Company Act
      of 1935, as amended.

     

    5.21  Existing
      Credit Agreement.
      All
      indebtedness under the Existing Credit Agreement has been repaid in full, all
      commitments thereunder have been terminated and such credit agreement and other
      related loan documents have been terminated.

     

    5.22  Reportable
      Transaction.
      The
      Borrower does not intend to treat the Credit Extensions and related transactions
      as being a “reportable transaction” (within the meaning of Treasury Regulation
      Section 1.6011-4). In the event the Borrower determines to take any action
      inconsistent with such intention, it will promptly notify the Administrative
      Agent thereof.

     

    ARTICLE
      VI  

     

    COVENANTS

     

    Until
      the
      Obligations are paid in full, and so long as any Commitment is outstanding,
      unless the Required Lenders shall otherwise consent in writing:

     

    6.1  Financial
      Reporting.
      The
      Borrower will maintain, for itself and each Subsidiary, a system of accounting
      established and administered in accordance with generally accepted accounting
      principles, and the Borrower will furnish to the Lenders:

     

    (i)  Within
      90
      days after the close of each of its fiscal years, an unqualified audit report
      certified by independent certified public accountants acceptable to the Lenders,
      prepared in accordance with Agreement Accounting Principles on a consolidated
      basis for the Borrower and the Guarantors, including balance sheets as of the
      end of such period, related statements of income and retained earnings, and
      a
      consolidated statement of cash flows, accompanied by any management letter
      prepared by said accountants.

     

    (ii)  Within
      45
      days after the close of the first three quarterly periods of each of its fiscal
      years, either (i) a consolidated unaudited balance sheet as at the close of
      each
      such period and consolidated statements of income and retained earnings and
      a
      statement of cash flows for the period from the beginning of such fiscal year
      to
      the end of such quarter, all certified by its chief financial officer or (ii)
      if
      the Borrower is then a “registrant” within the meaning of Rule 1-01 of
      Regulation S-X of the Securities and Exchange Commission and required to file
      a
      report on Form 10-Q with the Securities and Exchange Commission, a copy of
      the
      Borrower’s report on Form 10-Q for such quarterly period.

     

    (iii)  Together
      with the financial statements required under Sections
      6.1(i)
      and
(ii),
      a
      compliance certificate in substantially the form of Exhibit
      B
      signed
      by its Chief Financial Officer or Treasurer showing the calculations necessary
      to determine compliance with this Agreement and stating that No Default or
      Unmatured Default exists, or if any Default or Unmatured Default exists, stating
      the nature and status thereof.

     

    (iv)  As
      soon
      as possible and in any event within 10 days after the Borrower knows that any
      Reportable Event has occurred with respect to any Plan, a statement, signed
      by
      the chief financial officer or treasurer of the Borrower, describing said
      Reportable Event and the action which the Borrower proposes to take with respect
      thereto.

     

    (v)  As
      soon
      as possible and in any event within 10 days after receipt by the Borrower,
      a
      copy of (a) any notice or claim to the effect that the Borrower or any of its
      Subsidiaries is or may be liable to any Person as a result of the release
      by the Borrower, any of its Subsidiaries, or any other Person of any toxic
      or
      hazardous waste or substance into the environment, and (b) any notice alleging
      any violation of any federal, state or local environmental, health or safety
      law
      or regulation by the Borrower or any of its Subsidiaries, which, in either
      case,
      could reasonably be expected to have a Material Adverse Effect.

     

    (vi)  Promptly
      upon the furnishing thereof to the shareholders of the Borrower, copies of
      all
      financial statements, reports and proxy statements so furnished.

     

    (vii)  Promptly
      upon the filing thereof, copies of all registration statements (other than
      registration statements on Form S-8 or any successor form thereto and other
      than
      registration statements relating to shares to be issued under a dividend
      reinvestment plan) and annual, quarterly, monthly or other regular reports
      which
      the Borrower or any Subsidiary files with the Securities and Exchange
      Commission.

     

    (viii)  Such
      other information (including non-financial information) as the Administrative
      Agent or any Lender may from time to time reasonably request.

     

    Documents
      required to be delivered pursuant to clause
      (i),
      (ii),
      (vi)
      or
(vii)
      above
      may be delivered electronically and, if so delivered, shall be deemed to have
      been delivered on the date (i) on which the Borrower posts such documents,
      or
      provides a link thereto, on a website on the internet at a website address
      previously specified to the Administrative Agent and the Lenders; or (ii) on
      which such documents are posted on the Borrower’s behalf on IntraLinks or
      another relevant website, if any, to which each of the Administrative Agent
      and
      each Lender has access; provided
      that (i)
      upon request of the Administrative Agent or any Lender, the Borrower shall
      deliver paper copies of such documents to the Administrative Agent or such
      Lender (until a written request to cease delivering paper copies is given by
      the
      Administrative Agent or such Lender) and (ii) the Borrower shall notify (which
      may be by facsimile or electronic mail) the Administrative Agent and each Lender
      of the posting of any documents. The Administrative Agent shall have no
      obligation to request the delivery of, or to maintain copies of, the documents
      referred to above or to monitor compliance by the Borrower with any such request
      for delivery, and each Lender shall be solely responsible for requesting
      delivery to it or maintaining its copies of such documents.

     

    6.2  Use
      of
      Proceeds.
      Use the
      proceeds of the Credit Extensions solely for the purposes herein described.
      Neither the Borrower nor any Guarantor will, nor will it permit any Subsidiary
      to, use any of the proceeds of the Loans to purchase or carry any “margin stock”
(as defined in Regulation U).

     

    6.3  Notice
      of Default.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, give notice in writing to the Lenders of the occurrence of
      any
      Default or Unmatured Default and of any other development, financial or
      otherwise, which could reasonably be expected to have a Material Adverse Effect,
      in each case promptly after any officer of the Borrower or a Guarantor obtains
      knowledge thereof.

     

    6.4  Conduct
      of Business.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, carry on and conduct its business in substantially the same
      manner and in substantially the same or reasonably related fields of enterprise
      as it is presently conducted and do all things necessary to remain duly
      incorporated or organized, validly existing and (to the extent such concept
      applies to such entity) in good standing as a domestic corporation, partnership
      or limited liability company in its jurisdiction of incorporation or
      organization, as the case may be, and maintain all requisite authority to
      conduct its business in each jurisdiction in which its business is
      conducted.

     

    6.5  Taxes.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, timely file complete and correct United States federal and
      applicable foreign, state and local tax returns required by law and pay when
      due
      all taxes, assessments and governmental charges and levies upon it or its
      income, profits or Property, except those which are being contested in good
      faith by appropriate proceedings and with respect to which adequate reserves
      have been set aside in accordance with Agreement Accounting
      Principles.

     

    6.6  Insurance.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, maintain with financially sound and reputable insurance
      companies insurance on all their Property in such amounts and covering such
      risks as is consistent with sound business practice, and the Borrower will
      furnish to any Lender upon request full information as to the insurance
      carried.

     

    6.7  Compliance
      with Laws.

     

    (i)  The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, comply with all laws, rules, regulations, orders, writs,
      judgments, injunctions, decrees or awards to which it may be subject
      including, without limitation, all Environmental Laws, except where such
      noncompliance, singly or in the aggregate, could not have a Material Adverse
      Effect.

     

    (ii)  Without
      limiting clause
      (i)
      above,
      the Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, ensure that no person who owns a controlling interest in or
      otherwise controls the Borrower, any Guarantor or any Subsidiary is or shall
      be
      (i) listed on the Specially Designated Nationals and Blocked Person List
      maintained by the Office of Foreign Assets Control (“OFAC”),
      Department of the Treasury, and/or any other similar lists maintained by OFAC
      pursuant to any authorizing statute, Executive Order or regulation or (ii)
      a
      person designated under Section 1(b), (c) or (d) of Executive Order No. 13224
      (September 23, 2001), any related enabling legislation or any other similar
      Executive Orders.

     

    (iii)  Without
      limiting clause
      (i)
      above,
      the Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, comply with the Bank Secrecy Act (“BSA”)
      and
      all other applicable anti-money laundering laws and regulations.

     

    6.8  Maintenance
      of Properties.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, do all things necessary to maintain, preserve, protect and
      keep
      its Property in good repair, working order and condition, and make all necessary
      and proper repairs, renewals and replacements so that its business carried
      on in
      connection therewith may be properly conducted at all times, except where
      such failure, to maintain, singly or in the aggregate, could not have a Material
      Adverse Effect.

     

    6.9  Inspection.
      The
      Borrower and each Guarantor will, and will cause each of their respective
      Subsidiaries to, permit the Administrative Agent and the Lenders, by their
      respective representatives and agents, to inspect any of the Property, books
      and
      financial records of the Borrower, such Guarantor and such Subsidiaries, to
      examine and make copies of the books of accounts and other financial records
      of
      the Borrower, such Guarantor and such Subsidiary, and to discuss the affairs,
      finances and accounts of the Borrower, such Guarantor and such Subsidiary with,
      and to be advised as to the same by, their respective officers at such
      reasonable times and intervals as the Administrative Agent or any Lender
      may designate.

     

    6.10  Merger.
      Neither
      the Borrower nor any Guarantor will, nor will it permit any Subsidiary to,
      merge
      or consolidate with or into any other Person, except (i) a Subsidiary of the
      Borrower may merge into the Borrower or a Wholly-Owned Subsidiary of the
      Borrower and (ii) provided that, both prior to and immediately after giving
      effect to such merger or consolidation, no Default or Unmatured Default exists,
      the Borrower and any Guarantor may enter into mergers (provided
      that (a)
      the Borrower, or such Guarantor, as the case may be, is the surviving
      corporation of any such merger or consolidation to which such Person is a party
      or (b) if the Borrower or such Guarantor is not the surviving entity of such
      merger or consolidation, (x) the Person into which the Borrower or such
      Guarantor, as the case may be, shall be merged or formed by any such
      consolidation (1) shall be a corporation organized and validly existing under
      the laws of the United States or any state thereof or the District of Columbia
      and (2) shall assume the Borrower’s or such Guarantor’s, as applicable,
      obligations hereunder and under the Notes in an agreement or instrument
      satisfactory in form and substance to the Administrative Agent and (y) the
      Moody’s Rating and the S&P Rating (each as defined in the Pricing Schedule)
      of the surviving corporation in effect immediately after giving effect to such
      merger or consolidation shall not be less than “Baa3” (in the case of the
      Moody’s Rating) and “BBB-” (in the case of the S&P Rating)).

     

    6.11  Sale
      of Assets.
      The
      Borrower will not, nor will it permit any Subsidiary of the Borrower to, lease,
      sell or otherwise dispose of its Property to any other Person,
      except:

     

    (i)  Sales
      of
      inventory in the ordinary course of business.

     

    (ii)  Leases,
      sales or other dispositions of its Property that, together with all other
      Property of the Borrower and its Subsidiaries previously leased, sold or
      disposed of (other than inventory in the ordinary course of business) as
      permitted by this Section during the twelve-month period ending with the month
      in which any such lease, sale or other disposition occurs, do not constitute
      all
      or substantially all of the Property of the Borrower and its
      Subsidiaries.

     

    6.12  Investments
      and Acquisitions.
      The
      Borrower will not, nor will it permit any Subsidiary to, make or suffer to
      exist
      any Investments (including without limitation, loans and advances to, and other
      Investments in, Subsidiaries), or commitments therefor, or to create any
      Subsidiary or to become or remain a partner in any partnership or joint venture,
      or to make any Acquisition of any Person, except:

     

    (i)  Cash
      Equivalent Investments.

     

    (ii)  Investments
      in Subsidiaries and other Investments, in each case in existence on the date
      hereof and described in Schedule
      1.

     

    (iii)  Loans
      and
      advances by the Borrower to the Guarantors.

     

    (iv)  Investments
      in Persons principally engaged in a field of enterprise engaged in by the
      Borrower and its Subsidiaries on the date hereof and any other field of
      enterprise substantially related, ancillary or complementary
      thereto.

     

    6.13  Liens.
      Neither
      the Borrower nor any Guarantor will, nor will it permit any Subsidiary to,
      create, incur, or suffer to exist any Lien in, of or on the Property of the
      Borrower, any Guarantor or any of their Subsidiaries, except:

     

    (i)  Liens
      for
      taxes, assessments or governmental charges or levies on its Property if the
      same
      shall not at the time be delinquent or thereafter can be paid without penalty,
      or are being contested in good faith and by appropriate proceedings and for
      which adequate reserves in accordance with Agreement Accounting Principles
      shall
      have been set aside on its books.

     

    (ii)  Liens
      imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and other
      similar liens arising in the ordinary course of business which secure payment
      of
      obligations not more than 60 days past due, and such other carriers’
warehousemen’s and mechanics’ liens that are being contested in good faith and
      by appropriate proceedings and for which adequate reserves in accordance with
      Agreement Accounting Principles shall have been set aside on its
      books.

     

    (iii)  Liens
      arising out of pledges or deposits under worker’s compensation laws,
      unemployment insurance, old age pensions, or other social security or retirement
      benefits, or similar legislation.

     

    (iv)  Utility
      easements, building restrictions and such other encumbrances or charges against
      real property as are of a nature generally existing with respect to properties
      of a similar character and which do not in any material way affect the
      marketability of the same or interfere with the use thereof in the business
      of
      the Borrower or its Subsidiaries.

     

    (v)  Liens
      existing on the date hereof and described in Schedule
      2,
      including extensions, renewals or replacements of any such Liens in connection
      with the refinancing of any related Existing Indebtedness (without any increase
      in the amount thereof or any change in the direct and contingent obligors
      thereof); provided
      that in
      connection with the refinancing of any such Existing Indebtedness such Liens
      shall extend only to the property covered by such Liens immediately prior to
      such extension, renewal or replacement.

     

    (vi)  Liens
      under the Mortgage Indenture on the property of SIGECO that is subject to the
      Mortgage Indenture (without giving effect to any amendments thereto after the
      date hereof that would expand the description of the collateral subject to
      the
      lien thereof).

     

    (vii)  Liens
      securing Indebtedness of a Person existing on the date the Person becomes a
      Subsidiary of the Borrower or Liens on assets securing Indebtedness assumed
      by
      the Borrower or a Subsidiary of the Borrower when such assets are acquired
      by
      the Borrower or a Subsidiary of the Borrower, including extensions, renewals
      or
      replacements of any such Liens, provided,
      however,
      that
      (i) such Liens were not created in contemplation of such Person becoming a
      Subsidiary or the acquisition of such assets and (ii) such Liens may not extend
      to any other Property owned by the Borrower or any of its
      Subsidiaries.

     

    (viii)  Liens
      securing Indebtedness not exceeding 10% of the Borrower’s Consolidated Net Worth
      in the aggregate outstanding at any time

     

    6.14  Affiliates.
      Except
      for the payment of lawful dividends or the making of lawful distributions on
      its
      capital stock, the Borrower will not, and will not permit any Subsidiary to,
      enter into any transaction (including, without limitation, the purchase or
      sale
      of any Property or service) with, or make any payment or transfer to, any
      Affiliate except in the ordinary course of business and pursuant to the
      reasonable requirements of the Borrower’s or such Subsidiary’s business and upon
      fair and reasonable terms no less favorable to the Borrower or such
      Subsidiary than the Borrower or such Subsidiary would obtain in a comparable
      arms’-length transaction.

     

    6.15  Leverage
      Ratio.
      The
      Borrower will not permit the ratio, determined as of the end of each of its
      fiscal quarters, of (i) the Borrower’s Consolidated Indebtedness to (ii) the
      Borrower’s Consolidated Indebtedness plus
      the
      Borrower’s Consolidated Net Worth to be greater than .65 to 1.0.

     

    6.16  Certain
      Restrictions.
      The
      Borrower shall not permit any of its Subsidiaries to, directly or indirectly,
      create or otherwise cause or suffer to exist or become effective any encumbrance
      or restriction on the ability of any Subsidiary to (a) pay dividends or make
      other distributions on its capital stock owned by the Borrower or any
      Subsidiary, or pay any Indebtedness owed to the Borrower or any Subsidiary
      (other than as described on Schedule
      6.16
      and
      other customary limits imposed by corporate law and fraudulent conveyance
      statutes and applicable restrictions contained in section 305(a) of the Federal
      Power Act, as amended), (b) make loans or advances to the Borrower or (c)
      transfer any of its assets or properties to the Borrower, except for such
      encumbrances or restrictions existing by reason of or under (i) applicable
      law,
      (ii) this Agreement and the other Loan Documents, (iii) customary restrictions
      with respect to a Subsidiary pursuant to an agreement that has been entered
      into
      for the sale or disposition of all or substantially all of the capital stock
      of
      such Subsidiary, (iv) restrictions binding on any Subsidiary on the date it
      becomes a Subsidiary, provided
      such
      restrictions were not created in contemplation of such Person becoming a
      Subsidiary or (v) restrictions set forth on Schedule
      6.16.

     

    ARTICLE
      VII  

     

    DEFAULTS

     

    The
      occurrence of any one or more of the following events shall constitute a
      Default:

     

    7.1 Any
      representation or warranty made or deemed made by or on behalf of the Borrower,
      any Guarantor or any of their Subsidiaries to the Lenders or the Administrative
      Agent under or in connection with this Agreement, any Credit Extension, any
      other Loan Document or any certificate or information delivered in connection
      with this Agreement or any other Loan Document shall be materially false on
      the
      date as of which made.

     

    7.2 Nonpayment
      of principal of any Loan when due, nonpayment of any Reimbursement Obligation
      within one Business Day after the same becomes due, or nonpayment of interest
      upon any Loan or of any facility fee, LC Fee or other obligation under any
      of
      the Loan Documents within five days after the same becomes due.

     

    7.3 The
      breach by the Borrower or any Guarantor of any of the terms or provisions of
      Section
      6.2,
      6.3,
      6.10,
      6.11,
      6.12,
      6.13,
      6.14,
      6.15
      or
6.16.

     

    7.4 The
      breach by the Borrower or any Guarantor (other than a breach which constitutes
      a
      Default under another Section of this Article
      VII)
      of any
      of the terms or provisions of this Agreement which is not remedied within thirty
      days after written notice from the Administrative Agent or any
      Lender.

     

    7.5 Failure
      of the Borrower or any of its Subsidiaries or any Guarantor to pay when due
      any
      Indebtedness aggregating in excess of $50,000,000 (“Material
      Indebtedness”);
      or
      the default by the Borrower or any of its Subsidiaries or any Guarantor in
      the
      performance (beyond the applicable grace period with respect thereto, if any)
      of
      any term, provision or condition contained in any agreement under which any
      such
      Material Indebtedness was created or is governed, or any other event shall
      occur
      or condition exist, the effect of which default or event is to cause, or to
      permit the holder or holders of such Material Indebtedness to cause, such
      Material Indebtedness to become due prior to its stated maturity; or any
      Material Indebtedness of the Borrower or any of its Subsidiaries or any
      Guarantor shall be declared to be due and payable or required to be prepaid
      or
      repurchased (other than by a regularly scheduled payment) prior to the stated
      maturity thereof; or the Borrower or any of its Subsidiaries or any Guarantor
      shall not pay, or admit in writing its inability to pay, its debts generally
      as
      they become due.

     

    7.6 The
      Borrower or any of its Subsidiaries or any Guarantor shall (i) have an order
      for
      relief entered with respect to it under the Federal bankruptcy laws as now
      or
      hereafter in effect, (ii) make an assignment for the benefit of creditors,
      (iii)
      apply for, seek, consent to, or acquiesce in, the appointment of a receiver,
      custodian, trustee, examiner, liquidator or similar official for it or any
      Substantial Portion of its Property, (iv) institute any proceeding seeking
      an
      order for relief under the Federal bankruptcy laws as now or hereafter in effect
      or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
      winding up, liquidation, reorganization, arrangement, adjustment or composition
      of it or its debts under any law relating to bankruptcy, insolvency or
      reorganization or relief of debtors or fail to file an answer or other pleading
      denying the material allegations of any such proceeding filed against it, (v)
      take any corporate or other organizational action to authorize or effect any
      of
      the foregoing actions set forth in this Section 7.6
      or (vi)
      fail to contest in good faith any appointment or proceeding described in
Section 7.7.

     

    7.7 Without
      the application, approval or consent of the Borrower or any of its Subsidiaries
      or any Guarantor, a receiver, trustee, examiner, liquidator or similar official
      shall be appointed for the Borrower or any of its Subsidiaries or any Guarantor
      or any Substantial Portion of its Property, or a proceeding described in
Section 7.6(iv)
      shall be
      instituted against the Borrower or any of its Subsidiaries or any Guarantor
      and
      such appointment continues undischarged or such proceeding continues undismissed
      or unstayed for a period of 60 consecutive days.

     

    7.8 Any
      court, government or governmental agency shall condemn, seize or otherwise
      appropriate, or take custody or control of, all or any portion of the Property
      of the Borrower and its Subsidiaries or any Guarantor which, when taken together
      with all other Property of the Borrower and its Subsidiaries or any Guarantor
      so
      condemned, seized, appropriated, or taken custody or control of, during the
      twelve-month period ending with the month in which any such action occurs,
      constitutes a Substantial Portion.

     

    7.9 The
      Borrower or any of its Subsidiaries or any Guarantor shall fail within 30 days
      to pay, bond or otherwise discharge any judgment or order for the payment of
      money in excess of $50,000,000, which is not stayed on appeal or otherwise
      being
      appropriately contested in good faith.

     

    7.10 The
      Unfunded Liabilities of all Single Employer Plans shall have a Material Adverse
      Effect or be reasonably likely to have a Material Adverse Effect or any
      Reportable Event shall occur in connection with any Plan.

     

    7.11 The
      Borrower or any other member of the Controlled Group shall have been notified
      by
      the sponsor of a Multiemployer Plan that it has incurred withdrawal liability
      to
      such Multiemployer Plan in an amount which, when aggregated with all other
      amounts required to be paid to Multiemployer Plans by the Borrower or any other
      member of the Controlled Group as withdrawal liability (determined as of the
      date of such notification), shall have a Material Adverse Effect or be
      reasonably likely to have a Material Adverse Effect.

     

    7.12 The
      Borrower or any other member of the Controlled Group shall have been notified
      by
      the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
      reorganization or is being terminated, within the meaning of Title IV of ERISA,
      if such reorganization or termination shall have a Material Adverse Effect
      or be
      reasonably likely to have a Material Adverse Effect.

     

    7.13 The
      Borrower or any of its Subsidiaries shall (i) be the subject of any proceeding
      or investigation pertaining to the release by the Borrower, any of its
      Subsidiaries or any other Person of any toxic or hazardous waste or substance
      into the environment, or (ii) violate any Environmental Law, which, in the
      case
      of an event described in clause
      (i)
      or
clause
      (ii),
      has a
      Material Adverse Effect.

     

    7.14 Any
      Change in Control shall occur.

     

    7.15 The
      occurrence of any “default”, as defined in any Loan Document (other than this
      Agreement) or the breach of any of the terms or provisions of any Loan Document
      (other than this Agreement), which default or breach continues beyond any period
      of grace therein provided.

     

    7.16 The
      obligations of any Guarantor under Article
      XIII
      hereof
      shall fail to remain in full force or effect or any action shall be taken to
      discontinue or to assert the invalidity or unenforceability of any of such
      obligations, or any Guarantor shall deny that it has any further liability
      under
      such Article
      XIII,
      or
      shall give notice to such effect.

     

    ARTICLE
      VIII  

     

    ACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES

     

    8.1  Acceleration;
      Facility LC Collateral Account.
      (i)
      If any
      Default described in Section 7.6
      or
7.7
      occurs
      with respect to the Borrower, any Guarantor or any of the Borrower’s
      Subsidiaries, the commitments of the Lenders to make, renew or convert Advances
      and the obligation and power of the LC Issuers to issue Facility LCs shall
      automatically terminate and the Obligations shall immediately become due and
      payable without any election or action on the part of the Administrative Agent,
      any LC Issuer or any Lender and the Borrower will be and become thereby
      unconditionally obligated, without any further notice, act or demand, to pay
      to
      the Administrative Agent an amount in immediately available funds, which funds
      shall be held in the Facility LC Collateral Account, equal to the difference
      of
      (x) the amount of LC Obligations at such time, less (y) the amount on deposit
      in
      the Facility LC Collateral Account at such time which is free and clear of
      all
      rights and claims of third parties and has not been applied against the
      Obligations (such difference, the “Collateral
      Shortfall Amount”).
      If
      any other Default occurs, the Required Lenders (or the Administrative Agent
      with
      the consent of the Required Lenders) may (a) terminate or suspend the
      obligations of the Lenders to make Loans hereunder and the obligation and power
      of the LC Issuers to issue Facility LCs, or declare the Obligations to be due
      and payable, or both, whereupon the Obligations shall become immediately due
      and
      payable, without presentment, demand, protest or notice of any kind, all of
      which the Borrower hereby expressly waives, and (b) upon notice to the Borrower
      and in addition to the continuing right to demand payment of all amounts payable
      under this Agreement, make demand on the Borrower to pay, and the Borrower
      will,
      forthwith upon such demand and without any further notice or act, pay to the
      Administrative Agent the Collateral Shortfall Amount, which funds shall be
      deposited in the Facility LC Collateral Account.

     

    (ii)  If
      at any
      time while any Default is continuing, the Administrative Agent determines that
      the Collateral Shortfall Amount at such time is greater than zero, the
      Administrative Agent may make demand on the Borrower to pay, and the Borrower
      will, forthwith upon such demand and without any further notice or act, pay
      to
      the Administrative Agent the Collateral Shortfall Amount, which funds shall
      be
      deposited in the Facility LC Collateral Account.

     

    (iii)  The
      Administrative Agent may at any time or from time to time after funds are
      deposited in the Facility LC Collateral Account, apply such funds to the payment
      of the Obligations and any other amounts as shall from time to time have become
      due and payable by the Borrower to the Lenders or the LC Issuers under the
      Loan
      Documents.

     

    (iv)  At
      any
      time while any Default is continuing, neither the Borrower nor any Person
      claiming on behalf of or through the Borrower shall have any right to withdraw
      any of the funds held in the Facility LC Collateral Account. After all of the
      Obligations have been indefeasibly paid in full and the Aggregate Commitment
      has
      been terminated, any funds remaining in the Facility LC Collateral Account
      shall
      be returned by the Administrative Agent to the Borrower or paid to whomever
      may
      be legally entitled thereto at such time.

     

    If,
      within 30 days after acceleration of the maturity of the Obligations or
      termination of the obligations of the Lenders to make Loans and the obligation
      and power of the LC Issuers to issue Facility LCs hereunder as a result of
      any
      Default (other than any Default as described in Section 7.6
      or
7.7
      with
      respect to the Borrower, any Guarantor or any of the Borrower’s Subsidiaries)
      and before any judgment or decree for the payment of the Obligations due shall
      have been obtained or entered, the Required Lenders (in their sole discretion)
      shall so direct, the Administrative Agent shall, by notice to the Borrower,
      rescind and annul such acceleration and/or termination.

     

    8.2  Remedies
      Not Exclusive.
      The
      remedies of the Lenders specified in this Agreement and the other Loan Documents
      shall not be exclusive and the Lenders may avail themselves of any of the
      remedies provided by law as well as any equitable remedies available to the
      Lenders, and each and every remedy shall be cumulative and concurrent and shall
      be in addition to every other remedy now or hereafter existing at law or in
      equity.

     

    8.3  Amendments.
      Subject
      to the provisions of this Article
      VIII,
      the
      Required Lenders (or the Administrative Agent with the consent in writing of
      the
      Required Lenders) and the Borrower may enter into agreements supplemental
      hereto for the purpose of adding or modifying any provisions to the Loan
      Documents or changing in any manner the rights of the Lenders or the Borrower
      hereunder or waiving any Default hereunder; provided,
      however, that
      no such supplemental agreement shall, without the consent of each
      Lender:

     

    (i)  Other
      than as provided in Section
      2.20,
      extend
      the final maturity of any Loan or extend the expiry date of any Facility LC
      to a
      date after the Facility Termination Date or postpone any regularly scheduled
      payment of principal of any Loan or forgive all or any portion of the principal
      amount of any Loan or Reimbursement Obligation, or reduce the rate or extend
      the
      time of payment of interest or fees on any Loan or Reimbursement
      Obligation.

     

    (ii)  Reduce
      the percentage specified in the definition of Required Lenders.

     

    (iii)  Other
      than as provided in Section
      2.20,
      extend
      the Facility Termination Date, or reduce the amount or extend the payment date
      for, the mandatory payments required under Section 2.2,
      or
      increase the amount of the Commitment of any Lender hereunder or the commitment
      to issue Facility LCs or permit the Borrower to assign its rights under this
      Agreement.

     

    (iv)  Amend
      this Section 8.3.

     

    (v)  Amend,
      modify or waive Article
      XIII
      or
      release any Guarantor from its obligations thereunder.

     

    No
      amendment of any provision of this Agreement relating to the Administrative
      Agent shall be effective without the written consent of the Administrative
      Agent, and no amendment of any provision relating to any LC Issuer shall be
      effective without the written consent of such LC Issuer. The Administrative
      Agent may waive payment of the fee required under Section 12.3.3
      without
      obtaining the consent of any other party to this Agreement. Notwithstanding
      anything to the contrary hereby, the Fee Letters may be amended or otherwise
      modified with the consent of the parties thereto, without requiring the consent
      of any other Lender.

     

    8.4  Preservation
      of Rights.
      No
      delay or omission of the Administrative Agent, any LC Issuer or any Lender
      to
      exercise any power or right under the Loan Documents shall impair such power
      or
      right or be construed to be a waiver of any Default or an acquiescence therein,
      and the making of a Credit Extension notwithstanding the existence of a Default
      or the inability of the Borrower to satisfy the conditions precedent to such
      Credit Extension shall not constitute any waiver or acquiescence. Any single
      or
      partial exercise of any power or right shall not preclude other or further
      exercise thereof or the exercise of any other power or right. No course of
      dealing shall be binding upon the Administrative Agent or any Lender. No waiver,
      amendment or other variation of the terms, conditions or provisions of the
      Loan
      Documents shall be valid unless in writing and signed by the Persons required
      pursuant to Section
      8.3,
      and
      then only to the extent in such writing specifically set forth.

     

    ARTICLE
      IX  

     

    GENERAL
      PROVISIONS

     

    9.1  Survival
      of Representations.
      All
      representations and warranties of the Borrower and the Guarantors contained
      in
      this Agreement shall survive the making of the Credit Extensions herein
      contemplated.

     

    9.2  Governmental
      Regulation.
      Anything contained in this Agreement to the contrary notwithstanding, no LC
      Issuer nor any Lender shall be obligated to extend credit to the Borrower in
      violation of any limitation or prohibition provided by any applicable statute
      or
      regulation.

     

    9.3  Headings.
      Section headings in the Loan Documents are for convenience of reference
      only, and shall not govern the interpretation of any of the provisions of the
      Loan Documents.

     

    9.4  Entire
      Agreement.
      The
      Loan Documents embody the entire agreement and understanding among the Borrower,
      the Guarantors, the Administrative Agent, the LC Issuers and the Lenders and
      supersede all prior agreements and understandings among the Borrower, the
      Guarantors, the Administrative Agent, the LC Issuers and the Lenders relating
      to
      the subject matter thereof.

     

    9.5  Several
      Obligations; Benefits of this Agreement.
      The
      respective obligations of the Lenders hereunder are several and not joint and
      no Lender shall be the partner or agent of any other (except to the extent
      to which the Administrative Agent is authorized to act as such). The failure
      of
      any Lender to perform any of its obligations hereunder shall not relieve any
      other Lender from any of its obligations hereunder. This Agreement shall not
      be
      construed so as to confer any right or benefit upon any Person other than the
      parties to this Agreement and their respective successors and assigns;
provided,
      however,
      that
      the parties hereto expressly agree that the Arrangers shall enjoy the benefits
      of Sections
      9.6,
      9.10
      and
10.11
      to the
      extent specifically set forth therein and each Arranger shall have the right
      to
      enforce such provisions on its own behalf and in its own name to the same extent
      as if it were a party to this Agreement.

     

    9.6  Expenses;
      Indemnification. (i)
      The
      Borrower shall reimburse the Administrative Agent and the Arrangers for any
      costs, internal charges and out-of-pocket expenses (including attorneys’ fees
      and time charges of attorneys for the Administrative Agent and the Arrangers,
      which attorneys may be employees of the Administrative Agent or the
      Arrangers) paid or incurred by the Administrative Agent or the Arrangers in
      connection with the preparation, negotiation, execution, delivery, syndication,
      review, amendment, modification, and administration of the Loan Documents.
      The
      Borrower also agrees to reimburse the Administrative Agent, the Arrangers,
      the
      LC Issuers and the Lenders for any costs, internal charges and out-of-pocket
      expenses (including attorneys’ fees and time charges of attorneys for the
      Administrative Agent, the Arrangers, the LC Issuers and the Lenders, which
      attorneys may be employees of the Administrative Agent, the LC Issuers or the
      Lenders) paid or incurred by the Administrative Agent, the Arrangers, the LC
      Issuers or any Lender in connection with the collection and enforcement of
      the
      Loan Documents. Expenses being reimbursed by the Borrower under this
      Section include, without limitation, costs and expenses incurred in
      connection with the Reports described in the following sentence. The Borrower
      acknowledges that from time to time the Administrative Agent may prepare
      and may distribute to the Lenders (but shall have no obligation or
      duty to prepare or to distribute to the Lenders) certain audit reports (the
      “Reports”)
      pertaining to the Borrower’s assets for internal use by the Administrative Agent
      from information furnished to it by or on behalf of the Borrower, after the
      Administrative Agent has exercised its rights of inspection pursuant to this
      Agreement.

     

    (ii)  The
      Borrower hereby further agrees to indemnify the Administrative Agent, the
      Arrangers, the LC Issuers and each Lender, their respective affiliates, and
      each
      of their directors, officers and employees against all losses, claims, damages,
      penalties, judgments, liabilities and expenses (including, without limitation,
      all expenses of litigation or preparation therefor whether or not the
      Administrative Agent, any Arranger, any LC Issuer or any Lender is a party
      thereto) which any of them may pay or incur arising out of or relating to
      this Agreement, the other Loan Documents, the transactions contemplated hereby
      or the direct or indirect application or proposed application of the proceeds
      of
      any Credit Extension hereunder except to the extent that they are determined
      in
      a final non-appealable judgment by a court of competent jurisdiction to have
      resulted from the gross negligence or willful misconduct of the party seeking
      indemnification. The obligations of the Borrower under this Section 9.6
      shall
      survive the payment of the Obligations and the termination of this
      Agreement.

     

    9.7  Numbers
      of Documents.
      All
      statements, notices, closing documents, and requests hereunder shall be
      furnished to the Administrative Agent with sufficient counterparts so that
      the
      Administrative Agent may furnish one to each of the Lenders.

     

    9.8  Accounting.
      Except
      as provided to the contrary herein, all accounting terms used herein shall
      be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with Agreement Accounting Principles.

     

    9.9  Severability
      of Provisions.
      Any
      provision in any Loan Document that is held to be inoperative, unenforceable
      or
      invalid in any jurisdiction shall, as to that jurisdiction, be inoperative,
      unenforceable or invalid without affecting the remaining provisions in that
      jurisdiction or the operation, enforceability or validity of that provision
      in
      any other jurisdiction, and to this end the provisions of all Loan Documents
      are
      declared to be severable.

     

    9.10  Nonliability
      of Lenders.
      The
      relationship between the Borrower on the one hand and the Lenders, the LC
      Issuers and the Administrative Agent on the other hand shall be solely that
      of
      borrower and lender. Neither the Administrative Agent, any Arranger, any LC
      Issuer nor any Lender shall have any fiduciary responsibility to the Borrower
      or
      any Guarantor. Neither the Administrative Agent, any Arranger, any LC Issuer
      nor
      any Lender undertakes any responsibility to the Borrower or any Guarantor to
      review or inform the Borrower or any Guarantor of any matter in connection
      with
      any phase of the Borrower’s or any Guarantor’s business or operations. The
      Borrower and the Guarantors agree that neither the Administrative Agent, any
      Arranger, any LC Issuer nor any Lender shall have liability to the Borrower
      or
      any Guarantor (whether sounding in tort, contract or otherwise) for losses
      suffered by the Borrower or any Guarantor in connection with, arising out of,
      or
      in any way related to, the transactions contemplated and the relationship
      established by the Loan Documents, or any act, omission or event occurring
      in
      connection therewith, unless it is determined in a final non-appealable judgment
      by a court of competent jurisdiction that such losses resulted from the gross
      negligence or willful misconduct of the party from which recovery is sought.
      Neither the Administrative Agent, any Arranger, any LC Issuer nor any Lender
      shall have any liability with respect to, and the Borrower and the Guarantors
      hereby waive, release and agree not to sue for, any special, indirect or
      consequential damages suffered by the Borrower or any Guarantor in connection
      with, arising out of, or in any way related to the Loan Documents or the
      transactions contemplated thereby.

     

    9.11  Confidentiality.
      The
      Administrative Agent and each Lender agrees to hold any confidential information
      which it may receive from the Borrower in connection with this Agreement in
      confidence, except for disclosure (i) for purposes related to this Agreement
      and
      the transactions contemplated hereby to its Affiliates and to the Administrative
      Agent, the LC Issuers and any other Lender and their respective Affiliates,
      (ii)
      for purposes related to this Agreement and the transactions contemplated hereby
      to legal counsel, accountants, and other professional advisors to such Lender
      or
      to a Transferee, (iii) to regulatory officials, (iv) to any Person as requested
      pursuant to or as required by law, regulation, or legal process, (v) to any
      Person in connection with any legal proceeding to which it is a party, (vi)
      to
      its direct or indirect contractual counterparties in swap agreements or to
      legal
      counsel, accountants and other professional advisors to such counterparties,
      (vii) permitted by Section
      12.4
      and
      (viii) to rating agencies if requested or required by such agencies in
      connection with a rating relating to the Credit Extensions hereunder. Without
      limiting Section
      9.4,
      the
      Borrower agrees that the terms of this Section
      9.11
      shall
      set forth the entire agreement between the Borrower and each Lender (including
      the Administrative Agent and the LC Issuers) with respect to any confidential
      information previously or hereafter received by such Lender in connection with
      this Agreement, and this Section
      9.11
      shall
      supersede any and all prior confidentiality agreements entered into by such
      Lender with respect to such confidential information. Notwithstanding anything
      herein to the contrary, confidential information shall not include, and each
      party to any of the Loan Documents and their respective Affiliates (and the
      respective partners, directors, officers, employees, advisors, representatives
      and other agents of each of the foregoing and their Affiliates) may disclose
      to
      any and all Persons, without limitation of any kind, (i) any information with
      respect to the U.S. federal and state income tax treatment of the transactions
      contemplated hereby and any facts that may be relevant to understanding such
      tax
      treatment, which facts shall not include for this purpose the names of the
      parties or any other Person named herein, or information that would permit
      identification of the parties or such other Persons, or any pricing terms or
      other nonpublic business or financial information that is unrelated to such
      tax
      treatment or facts and (ii) all materials of any kind (including opinions or
      other tax analyses) relating to such tax treatment or facts that are provided
      to
      any of the Persons referred to above, and it is hereby confirmed that each
      of
      the Persons referred to above has been authorized to make such disclosures
      since
      the commencement of discussions regarding the transactions contemplated hereby;
      provided
      that
      with respect to any document or similar item that in either case contains
      information concerning tax treatment or tax structure of the transactions
      contemplated hereby as well as other information, this sentence shall only
      apply
      to such portions of the document or similar item that relate to such tax
      treatment or tax structure.

     

    9.12  Nonreliance.
      Each
      Lender hereby represents that it is not relying on or looking to any margin
      stock (as defined in Regulation U) for the repayment of the Credit Extensions
      provided for herein.

     

    9.13  Disclosure.
      The
      Lenders hereby (i) acknowledge and agree that JPMCB and/or its Affiliates from
      time to time may hold investments in, make other loans to or have other
      relationships with the Borrower and its Affiliates and (ii) waive any liability
      of JPMCB or such Affiliate of JPMCB to the Borrower or any Lender, respectively,
      arising out of or resulting from such investments, loans or relationships other
      than liabilities arising out of the gross negligence or willful misconduct
      of
      JPMCB or its Affiliates.

     

    9.14  USA
      PATRIOT ACT NOTIFICATION.
      The
      following notification is provided to the Borrower pursuant to Section 326
      of
      the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

     

    IMPORTANT
      INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government
      fight the funding of terrorism and money laundering activities, Federal law
      requires all financial institutions to obtain, verify and record information
      that identifies each person or entity that opens an account, including any
      deposit account, treasury management account, loan, other extension of credit
      or
      other financial services product. What this means for the Borrower: When the
      Borrower opens an account, if the Borrower is an individual, the Administrative
      Agent and the Lenders will ask for the Borrower’s name, residential address, tax
      identification number, date of birth and other information that will allow
      the
      Administrative Agent and the Lenders to identify the Borrower, and, if the
      Borrower is not an individual, the Administrative Agent and the Lenders will
      ask
      for the Borrower’s name, tax identification number, business address and other
      information that will allow the Administrative Agent and the Lenders to identify
      the Borrower. The Administrative Agent and the Lenders may also ask, if the
      Borrower is an individual, to see the Borrower’s driver’s license or other
      identifying documents, and, if the Borrower is not an individual, to see the
      Borrower’s legal organizational documents or other identifying
      documents.

     

    ARTICLE
      X  

     

    THE
      ADMINISTRATIVE AGENT

     

    10.1  Appointment;
      Nature of Relationship.
      JPMCB
      is hereby appointed by each of the Lenders as its contractual representative
      (herein referred to as the “Agent”)
      hereunder and under each other Loan Document, and each of the Lenders
      irrevocably authorizes the Administrative Agent to act as the contractual
      representative of such Lender with the rights and duties expressly set forth
      herein and in the other Loan Documents. The Administrative Agent agrees to
      act
      as such contractual representative upon the express conditions contained in
      this
Article
      X.
      Notwithstanding the use of the defined term “Agent,” it is expressly understood
      and agreed that the Administrative Agent shall not have any fiduciary
      responsibility to any Lender by reason of this Agreement or any other Loan
      Document and that the Administrative Agent is merely acting as the contractual
      representative of the Lenders with only those duties as are expressly set forth
      in this Agreement and the other Loan Documents. In its capacity as the Lenders’
contractual representative, the Administrative Agent (i) does not hereby assume
      any fiduciary duty to any of the Lenders, (ii) is a “representative” within the
      meaning of Section 9-102(a)(72)(E) of the Uniform Commercial Code and (iii)
      is acting as an independent contractor, the rights and duties of which are
      limited to those expressly set forth in this Agreement and the other Loan
      Documents. Each of the Lenders hereby agrees to assert no claim against the
      Administrative Agent on any agency theory or any other theory of liability
      for
      breach of fiduciary duty, all of which claims each Lender hereby
      waives.

     

    10.2  Powers.
      The
      Administrative Agent shall have and may exercise such powers under the Loan
      Documents as are specifically delegated to the Administrative Agent by the
      terms
      of each thereof, together with such powers as are reasonably incidental thereto.
      The Administrative Agent shall have no implied duties to the Lenders, or
      any obligation to the Lenders to take any action thereunder except any action
      specifically provided by the Loan Documents to be taken by the Administrative
      Agent.

     

    10.3  General
      Immunity.
      Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be liable to the Borrower or any Lender for any action taken or omitted
      to
      be taken by it or them hereunder or under any other Loan Document or in
      connection herewith or therewith except to the extent such action or inaction
      is
      determined in a final non-appealable judgment by a court of competent
      jurisdiction to have arisen from the gross negligence or willful misconduct
      of
      such Person.

     

    10.4  No Responsibility
      for Loans, Recitals, etc.
      Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be responsible for or have any duty to ascertain, inquire into, or verify
      (a) any statement, warranty or representation made in connection with any Loan
      Document or any borrowing hereunder; (b) the performance or observance of any
      of
      the covenants or agreements of any obligor under any Loan Document, including,
      without limitation, any agreement by an obligor to furnish information directly
      to each Lender; (c) the satisfaction of any condition specified in Article
      IV,
      except
      receipt of items required to be delivered solely to the Administrative Agent;
      (d) the existence or possible existence of any Default or Unmatured Default;
      (e)
      the validity, enforceability, effectiveness, sufficiency or genuineness of
      any
      Loan Document or any other instrument or writing furnished in connection
      therewith; (f) the value, sufficiency, creation, perfection or priority of
      any
      Lien in any collateral security; or (g) the financial condition of the Borrower
      or any guarantor of any of the Obligations or of any of the Borrower’s or any
      such guarantor’s respective Subsidiaries. The Administrative Agent shall have
      no duty to disclose to the Lenders information that is not required to be
      furnished by the Borrower to the Administrative Agent at such time, but is
      voluntarily furnished by the Borrower to JPMCB (either in its capacity as
      Administrative Agent or in its individual capacity).

     

    10.5  Action
      on Instructions of Lenders.
      The
      Administrative Agent shall in all cases be fully protected in acting, or in
      refraining from acting, hereunder and under any other Loan Document in
      accordance with written instructions signed by the Required Lenders, and such
      instructions and any action taken or failure to act pursuant thereto shall
      be
      binding on all of the Lenders. The Lenders hereby acknowledge that the
      Administrative Agent shall be under no duty to take any discretionary
      action permitted to be taken by it pursuant to the provisions of this Agreement
      or any other Loan Document unless it shall be requested in writing to do so
      by
      the Required Lenders. The Administrative Agent shall be fully justified in
      failing or refusing to take any action hereunder and under any other Loan
      Document unless it shall first be indemnified to its satisfaction by the Lenders
      pro rata
      against
      any and all liability, cost and expense that it may incur by reason of
      taking or continuing to take any such action.

     

    10.6  Employment
      of Agents and Counsel.
      The
      Administrative Agent may execute any of its duties as Administrative Agent
      hereunder and under any other Loan Document by or through employees, agents,
      and
      attorneys-in-fact and shall not be answerable to the Lenders, except as to
      money
      or securities received by it or its authorized agents, for the default or
      misconduct of any such agents or attorneys-in-fact selected by it with
      reasonable care. The Administrative Agent shall be entitled to advice of counsel
      concerning the contractual arrangement between the Administrative Agent and
      the
      Lenders and all matters pertaining to the Administrative Agent’s duties
      hereunder and under any other Loan Document.

     

    10.7  Reliance
      on Documents; Counsel.
      The
      Administrative Agent shall be entitled to rely upon any Note, notice, consent,
      certificate, affidavit, letter, telegram, statement, paper or document believed
      by it to be genuine and correct and to have been signed or sent by the proper
      person or persons, and, in respect to legal matters, upon the opinion of counsel
      selected by the Administrative Agent, which counsel may be employees of the
      Administrative Agent.

     

    10.8  Agent’s
      Reimbursement and Indemnification.
      The
      Lenders agree to reimburse and indemnify the Administrative Agent ratably in
      proportion to their respective Commitments (or, if the Commitments have been
      terminated, in proportion to their Commitments immediately prior to such
      termination) (i) for any amounts not reimbursed by the Borrower for which the
      Administrative Agent is entitled to reimbursement by the Borrower under the
      Loan
      Documents, (ii) for any other expenses incurred by the Administrative Agent
      on
      behalf of the Lenders, in connection with the preparation, execution, delivery,
      administration and enforcement of the Loan Documents (including, without
      limitation, for any expenses incurred by the Administrative Agent in connection
      with any dispute between the Administrative Agent and any Lender or between
      two
      or more of the Lenders) and (iii) for any liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind and nature whatsoever which may be imposed on, incurred by or
      asserted against the Administrative Agent in any way relating to or arising
      out
      of the Loan Documents or any other document delivered in connection therewith
      or
      the transactions contemplated thereby (including, without limitation, for any
      such amounts incurred by or asserted against the Administrative Agent in
      connection with any dispute between the Administrative Agent and any Lender
      or
      between two or more of the Lenders), or the enforcement of any of the terms
      of
      the Loan Documents or of any such other documents, provided that
      (i)
      no Lender shall be liable for any of the foregoing to the extent any of the
      foregoing is found in a final non-appealable judgment by a court of competent
      jurisdiction to have resulted from the gross negligence or willful misconduct
      of
      the Administrative Agent and (ii) any indemnification required pursuant to
      Section
      3.5(vii)
      shall,
      notwithstanding the provisions of this Section
      10.8,
      be paid
      by the relevant Lender in accordance with the provisions thereof. The
      obligations of the Lenders under this Section 10.8
      shall
      survive payment of the Obligations and termination of this
      Agreement.

     

    10.9  Notice
      of Default.
      The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default or Unmatured Default hereunder unless the
      Administrative Agent has received written notice from a Lender or the Borrower
      referring to this Agreement describing such Default or Unmatured Default and
      stating that such notice is a “notice of default”. In the event that the
      Administrative Agent receives such a notice, the Administrative Agent shall
      give
      prompt notice thereof to the Lenders.

     

    10.10  Rights
      as a Lender.
      In the
      event the Administrative Agent is a Lender, the Administrative Agent shall
      have
      the same rights and powers hereunder and under any other Loan Document with
      respect to its Commitment and its Outstanding Credit Exposure as any Lender
      and
      may exercise the same as though it were not the Administrative Agent, and
      the term “Lender” or “Lenders” shall, at any time when the Administrative Agent
      is a Lender, unless the context otherwise indicates, include the Administrative
      Agent in its individual capacity. The Administrative Agent and its Affiliates
      may accept deposits from, lend money to, and generally engage in any kind
      of trust, debt, equity or other transaction, in addition to those contemplated
      by this Agreement or any other Loan Document, with the Borrower, any Guarantor
      or any of their Subsidiaries in which the Borrower, such Guarantor or such
      Subsidiary is not restricted hereby from engaging with any other Person. The
      Administrative Agent, in its individual capacity, is not obligated to remain
      a
      Lender.

     

    10.11  Lender
      Credit Decision.
      Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent, any Arranger or any other Lender and based on the
      financial statements prepared by the Borrower and such other documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement and the other Loan Documents. Each Lender
      also acknowledges that it will, independently and without reliance upon the
      Administrative Agent, any Arranger 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 this
      Agreement and the other Loan Documents.

     

    10.12  Successor
      Administrative Agent.
      The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Lenders and the Borrower, such resignation to be effective upon the
      appointment of a successor Administrative Agent or, if no successor
      Administrative Agent has been appointed, forty-five days after the retiring
      Agent gives notice of its intention to resign. The Administrative Agent may
      be
      removed at any time with or without cause by written notice received by the
      Administrative Agent from the Required Lenders, such removal to be effective
      on
      the date specified by the Required Lenders. Upon any such resignation or
      removal, the Required Lenders shall have the right to appoint, on behalf of
      the
      Borrower and the Lenders, a successor Administrative Agent. If no successor
      Administrative Agent shall have been so appointed by the Required Lenders within
      thirty days after the resigning Agent’s giving notice of its intention to
      resign, then the resigning Agent may appoint, on behalf of the Borrower and
      the
      Lenders, a successor Administrative Agent. Notwithstanding the previous
      sentence, the Administrative Agent may at any time without the consent of the
      Borrower or any Lender, appoint any of its Affiliates which is a commercial
      bank
      as a successor Administrative Agent hereunder. If the Administrative Agent
      has
      resigned or been removed and no successor Administrative Agent has been
      appointed, the Lenders may perform all the duties of the Administrative Agent
      hereunder and the Borrower shall make all payments in respect of the Obligations
      to the applicable Lender and for all other purposes shall deal directly with
      the
      Lenders. No successor Administrative Agent shall be deemed to be appointed
      hereunder until such successor Administrative Agent has accepted the
      appointment. Any such successor Administrative Agent shall be a commercial
      bank
      having capital and retained earnings of at least $100,000,000. Upon the
      acceptance of any appointment as Administrative Agent hereunder by a successor
      Administrative Agent, such successor Administrative Agent shall thereupon
      succeed to and become vested with all the rights, powers, privileges and duties
      of the resigning or removed Agent. Upon the effectiveness of the resignation
      or
      removal of the Administrative Agent, the resigning or removed Agent shall be
      discharged from its duties and obligations hereunder and under the Loan
      Documents. After the effectiveness of the resignation or removal of an Agent,
      the provisions of this Article
      X
      shall
      continue in effect for the benefit of such Agent in respect of any actions
      taken
      or omitted to be taken by it while it was acting as the Administrative Agent
      hereunder and under the other Loan Documents. In the event that there is a
      successor to the Administrative Agent by merger, or the Administrative Agent
      assigns its duties and obligations to an Affiliate pursuant to this Section
      10.12,
      then
      the term “Prime Rate” as used in this Agreement shall mean the prime rate, base
      rate or other analogous rate of the new Agent.

     

    10.13  Administrative
      Agent’s and Arrangers’ Fees.
      The
      Borrower agrees to pay to the Administrative Agent and the Arrangers, for their
      own respective accounts, the fees agreed to by the Borrower, the Administrative
      Agent and the Arrangers pursuant to the Fee Letters.

     

    10.14  Delegation
      to Affiliates.
      The
      Borrower and the Lenders agree that the Administrative Agent may delegate
      any of its duties under this Agreement to any of its Affiliates. Any such
      Affiliate (and such Affiliate’s directors, officers, agents and employees) which
      performs duties in connection with this Agreement shall be entitled to the
      same
      benefits of the indemnification, waiver and other protective provisions to
      which
      the Administrative Agent is entitled under Articles
      IX
      and
X.

     

    10.15  Co-Agents,
      Documentation Agent, Syndication Agent, etc.
      None of
      the financial institutions identified in this Agreement as a “co-agent”,
“co-documentation agent” or “syndication agent” shall have any right, power,
      obligation, liability, responsibility or duty under this Agreement other than,
      with respect to those financial institutions that are Lenders, those applicable
      to all Lenders as such. Without limiting the foregoing, none of such financial
      institutions shall have or be deemed to have a fiduciary relationship with
      any
      Lender. Each Lender hereby makes the same acknowledgments with respect to such
      financial institutions as it makes with respect to the Administrative Agent
      in
Section
      10.11.

     

    ARTICLE
      XI  

     

    SETOFF;
      RATABLE PAYMENTS

     

    11.1  Setoff.
      In
      addition to, and without limitation of, any rights of the Lenders under
      applicable law, if the Borrower becomes insolvent, however evidenced, or any
      Default occurs, any and all deposits (including all account balances, whether
      provisional or final and whether or not collected or available) and any other
      indebtedness at any time held or owing by any Lender or any Affiliate of any
      Lender to or for the credit or account of the Borrower or any Guarantor
      may be offset and applied toward the payment of the Obligations owing to
      such Lender, whether or not the Obligations, or any part hereof, shall then
      be
      due.

     

    11.2  Ratable
      Payments.
      If any
      Lender, whether by setoff or otherwise, has payment made to it upon its
      Outstanding Credit Exposure (other than payments received pursuant to
Section 3.1,
      3.2,
      3.4
      or
3.5)
      in a
      greater proportion than that received by any other Lender, such Lender agrees,
      promptly upon demand, to purchase a portion of the Aggregate Outstanding Credit
      Exposure held by the other Lenders so that after such purchase each Lender
      will
      hold its Pro Rata Share of the Aggregate Outstanding Exposure. If any Lender,
      whether in connection with setoff or amounts which might be subject to setoff
      or
      otherwise, receives collateral or other protection for its Obligations or such
      amounts which may be subject to setoff, such Lender agrees, promptly upon
      demand, to take such action necessary such that all Lenders share in the
      benefits of such collateral ratably in proportion to their respective Pro Rata
      Shares of the Aggregate Outstanding Credit Exposure. In case any such payment
      is
      disturbed by legal process, or otherwise, appropriate further adjustments shall
      be made.

     

    ARTICLE
      XII  

     

    BENEFIT
      OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     

    12.1  Successors
      and Assigns.
      The
      terms and provisions of the Loan Documents shall be binding upon and inure
      to
      the benefit of the Borrower, the Guarantors, the Lenders, the Administrative
      Agent and their respective successors and assigns permitted hereby, except
      that
      (i) neither the Borrower nor any Guarantor shall have the right to assign its
      rights or obligations under the Loan Documents without the prior written consent
      of each Lender, (ii) any assignment by any Lender must be made in compliance
      with Section
      12.3
      and
      (iii) any transfer by Participation must be made in compliance with Section
      12.2.
      The
      parties to this Agreement acknowledge that clause
      (ii)
      of the
      immediately preceding sentence relates only to absolute assignments and this
      Section
      12.1
      does not
      prohibit assignments creating security interests, including, without limitation,
      any pledge or assignment by any Lender of all or any portion of its rights
      under
      this Agreement and any Note to a Federal Reserve Bank; provided,
      however, that
      no
      such pledge or assignment creating a security interest shall release the
      transferor Lender from its obligations hereunder unless and until the parties
      thereto have complied with the provisions of Section
      12.3.
      The
      Administrative Agent may treat the Person which made any Credit Extension or
      which holds any Note as the owner thereof for all purposes hereof unless and
      until such Person complies with Section
      12.3;
      provided,
      however,
      that
      the Administrative Agent may in its discretion (but shall not be required to)
      follow instructions from the Person which made any Credit Extension or which
      holds any Note to direct payments relating to such Credit Extension or Note
      to
      another Person. Any assignee of the rights to any Credit Extension or any Note
      agrees by acceptance of such assignment to be bound by all the terms and
      provisions of the Loan Documents. Any request, authority or consent of any
      Person, who at the time of making such request or giving such authority or
      consent is the owner of the rights to any Credit Extension (whether or not
      a
      Note has been issued in evidence thereof), shall be conclusive and binding
      on
      any subsequent holder or assignee of the rights to such Credit
      Extension.

     

    12.2  Participations.

     

    12.2.1  Permitted
      Participants; Effect.
      Any
      Lender may at any time sell to one or more banks or other entities
      (“Participants”)
      participating interests in any Outstanding Credit Exposure owing to such Lender,
      any Note held by such Lender, any Commitment of such Lender or any other
      interest of such Lender under the Loan Documents. In the event of any such
      sale
      by a Lender of participating interests to a Participant, such Lender’s
      obligations under the Loan Documents shall remain unchanged, such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations, such Lender shall remain the owner of its Outstanding Credit
      Exposure and the holder of any Note issued to it in evidence thereof for all
      purposes under the Loan Documents, all amounts payable by the Borrower under
      this Agreement shall be determined as if such Lender had not sold such
      participating interests, and the Borrower and the Administrative Agent shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under the Loan Documents.

     

    12.2.2  Voting
      Rights.
      Each
      Lender shall retain the sole right to approve, without the consent of any
      Participant, any amendment, modification or waiver of any provision of the
      Loan
      Documents other than any amendment, modification or waiver with respect to
      any
      Outstanding Credit Exposure or Commitment in which such Participant has an
      interest which would require consent of all of the Lenders pursuant to the
      terms
      of Section
      8.3
      or of
      any other Loan Document.

     

    12.2.3  Benefit
      of Certain Provisions.
      The
      Borrower and each Guarantor agree that each Participant shall be deemed to
      have
      the right of setoff provided in Section
      11.1
      in
      respect of its participating interest in amounts owing under the Loan Documents
      to the same extent as if the amount of its participating interest were owing
      directly to it as a Lender under the Loan Documents, provided
      that
      each Lender shall retain the right of setoff provided in Section
      11.1
      with
      respect to the amount of participating interests sold to each Participant.
      The
      Lenders agree to share with each Participant, and each Participant, by
      exercising the right of setoff provided in Section
      11.1,
      agrees
      to share with each Lender, any amount received pursuant to the exercise of
      its
      right of setoff, such amounts to be shared in accordance with Section
      11.2
      as if
      each Participant were a Lender. The Borrower and each Guarantor further agree
      that each Participant shall be entitled to the benefits of Sections
      3.1,
      3.2,
      3.4,
      3.5,
      9.6
      and
9.10
      to the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to Section
      12.3,
      provided
      that (i)
      a Participant shall not be entitled to receive any greater payment under
Section
      3.1,
      3.2
      or
3.5
      than the
      Lender who sold the participating interest to such Participant would have
      received had it retained such interest for its own account, unless the sale
      of
      such interest to such Participant is made with the prior written consent of
      the
      Borrower, and (ii) any Participant not incorporated under the laws of the United
      States of America or any State thereof agrees to comply with the provisions
      of
Section
      3.5
      to the
      same extent as if it were a Lender.

     

    12.3  Assignments.

     

    12.3.1  Permitted
      Assignments.
      Any
      Lender may at any time assign to one or more banks or other entities
      (“Purchasers”)
      all or
      any part of its rights and obligations under the Loan Documents. Such assignment
      shall be substantially in the form of Exhibit
      D
      or in
      such other form as may be agreed to by the parties thereto. Each such assignment
      with respect to a Purchaser which is not a Lender or an Affiliate of a Lender
      shall be in an aggregate amount not less than $5,000,000. The amount of the
      assignment shall be based on the Commitment or Outstanding Credit Exposure
      (if
      the Commitment has been terminated) subject to the assignment, determined as
      of
      the date of such assignment or as of the “Trade Date,” if the “Trade Date” is
      specified in the assignment.

     

    12.3.2  Consents.
      The
      consent of the Borrower shall be required prior to an assignment becoming
      effective unless the Purchaser is a Lender or an Affiliate of a Lender,
provided that
      the
      consent of the Borrower shall not be required if a Default has occurred and
      is
      continuing. The consent of the Administrative Agent and the LC Issuers shall
      be
      required prior to an assignment becoming effective. Any consent required under
      this Section
      12.3.2
      shall
      not be unreasonably withheld or delayed.

     

    12.3.3  Effect;
      Effective Date.
      Upon
      (i) delivery to the Administrative Agent of an assignment, together with any
      consents required by Sections
      12.3.1
      and
12.3.2,
      and
      (ii) payment of a $3,500 fee to the Administrative Agent for processing such
      assignment (unless such fee is waived by the Administrative Agent), such
      assignment shall become effective on the effective date specified in such
      assignment. The assignment shall contain a representation by the Purchaser
      to
      the effect that none of the consideration used to make the purchase of the
      Commitment and Outstanding Credit Exposure under the applicable assignment
      agreement constitutes “plan assets” as defined under ERISA and that the rights
      and interests of the Purchaser in and under the Loan Documents will not be
“plan
      assets” under ERISA. On and after the effective date of such assignment, such
      Purchaser shall for all purposes be a Lender party to this Agreement and any
      other Loan Document executed by or on behalf of the Lenders and shall have
      all
      the rights and obligations of a Lender under the Loan Documents, to the same
      extent as if it were an original party thereto, and the transferor Lender shall
      be released with respect to the Commitment and Outstanding Credit Exposure
      assigned to such Purchaser without any further consent or action by the
      Borrower, the Lenders or the Administrative Agent. In the case of an assignment
      covering all of the assigning Lender’s rights and obligations under this
      Agreement, such Lender shall cease to be a Lender hereunder but shall continue
      to be entitled to the benefits of, and subject to, those provisions of this
      Agreement and the other Loan Documents which survive payment of the Obligations
      and termination of the applicable agreement. Any assignment or transfer by
      a
      Lender of rights or obligations under this Agreement that does not comply with
      this Section
      12.3
      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
      12.2.
      Upon
      the consummation of any assignment to a Purchaser pursuant to this Section
      12.3.3,
      the
      transferor Lender, the Administrative Agent and the Borrower shall make
      appropriate arrangements so that new Notes or, as appropriate, replacement
      Notes
      are issued to such transferor Lender and new Notes or, as appropriate,
      replacement Notes, are issued to such Purchaser, in each case in principal
      amounts reflecting their respective Commitments, as adjusted pursuant to such
      assignment.

     

    12.3.4  Register.
      The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrower, shall maintain at one of its offices in Chicago, Illinois a copy
      of
      each Assignment and Assumption delivered to it and a register for the
      recordation of the names and addresses of the Lenders, and the Commitments
      of,
      and principal amounts of the Outstanding Credit Exposure of, each Lender
      pursuant to the terms hereof from time to time (the “Register”).
      The
      entries in the Register shall be conclusive, and the Borrower, the
      Administrative Agent and the Lenders may 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, notwithstanding notice to the contrary. The
      Register shall be available for inspection by the Borrower at any reasonable
      time and from time to time upon reasonable prior notice. 

     

    12.4  Dissemination
      of Information.
      The
      Borrower authorizes each Lender to disclose to any Participant or Purchaser
      or
      any other Person acquiring an interest in the Loan Documents by operation of
      law
      (each a “Transferee”)
      and
      any prospective Transferee any and all information in such Lender’s possession
      concerning the creditworthiness of the Borrower and its Subsidiaries, including
      without limitation any information contained in any Reports; provided
      that
      each Transferee and prospective Transferee agrees to be bound by Section
      9.11
      of this
      Agreement. 

     

    12.5  Tax
      Treatment.
      If any
      interest in any Loan Document is transferred to any Transferee which is not
      incorporated under the laws of the United States or any State thereof, the
      transferor Lender shall cause such Transferee, concurrently with the
      effectiveness of such transfer, to comply with the provisions of Section
      3.5(iv).

     

    ARTICLE
      XIII  

     

    GUARANTY

     

    13.1  Guaranty.
      For
      valuable consideration, the receipt of which is hereby acknowledged, and to
      induce the Lenders and the LC Issuers to make Credit Extensions to the Borrower,
      each Guarantor hereby absolutely and unconditionally, and jointly and severally,
      guarantees prompt payment when due, whether at stated maturity, upon
      acceleration or otherwise, and at all times thereafter, of any and all
      Obligations of the Borrower to the Administrative Agent, the Lenders, the LC
      Issuers and any holder of a Note, or any of them, under or with respect to
      the
      Loan Documents, whether for principal, interest, fees, expenses or otherwise,
      in
      each case howsoever created, arising or evidenced, whether direct or indirect,
      absolute or contingent, now or hereafter existing, or due or to become due
      (collectively, the “Guaranteed
      Obligations”).
      Any
      term or provision of this Article
      XIII
      to the
      contrary notwithstanding, the aggregate maximum amount of the Guaranteed
      Obligations for which each Guarantor shall be liable shall not exceed the
      maximum amount for which such Guarantor can be liable without rendering this
      Agreement or any other Loan Document as it relates to such Guarantor, voidable
      under applicable law relating to fraudulent conveyance or fraudulent
      transfer.

     

    13.2  Waivers.
      Each
      Guarantor waives notice of the acceptance of this guaranty and of the extension
      or continuation of the Guaranteed Obligations or any part thereof. Each
      Guarantor further waives presentment, protest, notice or demand made on the
      Borrower or action or delinquency in respect of the Guaranteed Obligations
      or
      any part thereof, including any right to require the Administrative Agent or
      the
      Lenders to sue the Borrower, any other guarantor or any other Person obligated
      with respect to the Guaranteed Obligations or any part thereof, or otherwise
      to
      enforce payment thereof against any collateral securing the Guaranteed
      Obligations or any part thereof, provided
      that if
      at any time any payment of any portion of the Guaranteed Obligations is
      rescinded or must otherwise be restored or returned upon the insolvency,
      bankruptcy or reorganization of the Borrower or otherwise, each Guarantor’s
      obligations hereunder with respect to such payment shall be reinstated at such
      time as though such payment had not been made and whether or not the
      Administrative Agent or the Lenders are in possession of this guaranty. The
      Administrative Agent, the LC Issuers and the Lenders shall have no obligation
      to
      disclose or discuss with any Guarantor their assessments of the financial
      condition of the Borrower.

     

    13.3  Guaranty
      Absolute.
      This
      guaranty is a guaranty of payment and not of collection, is a primary obligation
      of each Guarantor and not merely one of surety, and the validity and
      enforceability of this guaranty shall be absolute and unconditional irrespective
      of, and shall not be impaired or affected by any of the following: (a) any
      extension, modification or renewal of, or indulgence with respect to, or
      substitutions for, the Guaranteed Obligations or any part thereof or any
      agreement relating thereto at any time; (b) any failure or omission to enforce
      any right, power or remedy with respect to the Guaranteed Obligations or any
      part thereof or any agreement relating thereto, or any collateral; (c) any
      waiver of any right, power or remedy with respect to the Guaranteed Obligations
      or any part thereof or any agreement relating thereto or with respect to any
      collateral; (d) any release, surrender, compromise, settlement, waiver,
      subordination or modification, with or without consideration, of any collateral,
      any other guaranties with respect to the Guaranteed Obligations or any part
      thereof, or any other obligation of any Person with respect to the Guaranteed
      Obligations or any part thereof; (e) the enforceability or validity of the
      Guaranteed Obligations or any part thereof or the genuineness, enforceability
      or
      validity of any agreement relating thereto or with respect to any collateral;
      (f) the application of payments received from any source to the payment of
      obligations other than the Guaranteed Obligations, any part thereof or amounts
      which are not covered by this guaranty even though the Administrative Agent,
      the
      LC Issuers and the Lenders might lawfully have elected to apply such payments
      to
      any part or all of the Guaranteed Obligations or to amounts which are not
      covered by this guaranty; (g) any change in the ownership of the Borrower or
      the
      insolvency, bankruptcy or any other change in the legal status of the Borrower;
      (h) the change in or the imposition of any law, decree, regulation or other
      governmental act which does or might impair, delay or in any way affect the
      validity, enforceability or the payment when due of the Guaranteed Obligations;
      (i) the failure of any Guarantor or the Borrower to maintain in full force,
      validity or effect or to obtain or renew when required all governmental and
      other approvals, licenses or consents required in connection with the Guaranteed
      Obligations or this guaranty, or to take any other action required in connection
      with the performance of all obligations pursuant to the Guaranteed Obligations
      or this guaranty; (j) the existence of any claim, setoff or other rights which
      any Guarantor may have at any time against the Borrower or any other Person
      in
      connection herewith or an unrelated transaction; (k) without limiting the
      foregoing, all defenses based on suretyship or impairment of collateral; or
      (l)
      any other circumstance, whether or not similar to any of the foregoing, which
      could constitute a defense to a guarantor, including all defenses based on
      suretyship or impairment of collateral; all whether or not any Guarantor shall
      have had notice or knowledge of any act or omission referred to in the foregoing
      clauses
      (a)
      through
(l)
      of this
      Section. It is agreed that each Guarantor’s liability hereunder is several and
      independent of any other guaranties or other obligations not arising under
      this
Article
      XIII
      at any
      time in effect with respect to the Guaranteed Obligations or any part thereof
      and that each Guarantor’s liability hereunder may be enforced regardless of the
      existence, validity, enforcement or non-enforcement of any such other guaranties
      or other obligations not arising under this Article
      XIII
      or any
      provision of any applicable law or regulation purporting to prohibit payment
      by
      the Borrower of the Guaranteed Obligations in the manner agreed upon by the
      Borrower and the Administrative Agent, the LC Issuers and the
      Lenders.

     

    13.4  Acceleration.
      Each
      Guarantor agrees that, as between such Guarantor on the one hand, and the
      Lenders, the LC Issuers and the Administrative Agent, on the other hand, the
      obligations of the Borrower guaranteed under this Article
      XIII
      may be
      declared to be forthwith due and payable, or may be deemed automatically to
      have
      been accelerated, as provided in Section
      8.1
      hereof
      for purposes of this Article XIII,
      notwithstanding any stay, injunction or other prohibition (whether in a
      bankruptcy proceeding affecting the Borrower or otherwise) preventing such
      declaration as against the Borrower and that, in the event of such declaration
      or automatic acceleration, such obligations (whether or not due and payable
      by
      the Borrower) shall forthwith become due and payable by such Guarantor for
      purposes of this Article
      XIII.

     

    13.5  Marshaling;
      Reinstatement.
      None of
      the Lenders nor the LC Issuers nor the Administrative Agent nor any Person
      acting for or on behalf of the Lenders, the LC Issuers or the Administrative
      Agent shall have any obligation to marshal any assets in favor of any Guarantor
      or against or in payment of any or all of the Guaranteed Obligations. If any
      Guarantor, the Borrower or any other guarantor of all or any part of the
      Guaranteed Obligations makes a payment or payments to any Lender, any LC Issuer
      or the Administrative Agent, or any Lender, any LC Issuer or the Administrative
      Agent receives any proceeds of collateral, which payment or payments or any
      part
      thereof are subsequently invalidated, declared to be fraudulent or preferential,
      set aside and/or required to be repaid to the Borrower, any Guarantor, such
      other guarantor or any other Person, or their respective estates, trustees,
      receivers or any other party, including, without limitation, the Guarantors,
      under any bankruptcy law, state or federal law, common law or equitable cause,
      then, to the extent of such payment or repayment, the part of the Guaranteed
      Obligations which has been paid, reduced or satisfied by such amount shall
      be
      reinstated and continued in full force and effect as of the time immediately
      preceding such initial payment, reduction or satisfaction.

     

    13.6  Delay
      of Subrogation.
      Notwithstanding any payment made by or for the account of any Guarantor pursuant
      to this Article
      XIII,
      no
      Guarantor shall be subrogated to any right of the Administrative Agent, any
      LC
      Issuer or any Lender, or have any right to obtain reimbursement from the
      Borrower, until such time as the Administrative Agent and each Lender shall
      have
      received final payment in cash of the full amount of the Guaranteed
      Obligations.

     

    ARTICLE
      XIV  

     

    NOTICES

     

    14.1  Notices.
      Except
      as otherwise permitted by Section 2.13
      with
      respect to borrowing notices, all notices, requests and other communications
      to
      any party hereunder shall be in writing (including facsimile transmission or,
      subject to Section
      14.2,
      electronic mail or posting on a website) and shall be given to such party at
      (i)
      in the case of the Borrower or the Administrative Agent, its address, facsimile
      number or electronic mail address set forth on Schedule
      14.1
      or at
      such other address, facsimile number or electronic mail address as such party
      may hereafter specify for the purpose by notice to the other parties hereto
      and (ii) in the case of any Lender, at the address, facsimile number or
      electronic mail address set forth in its Administrative Questionnaire or such
      other address, facsimile number or electronic mail address as such Lender may
      hereafter specify for such purpose by notice to the Borrower and the
      Administrative Agent. Subject to the last paragraph of Section
      6.1,
      each
      such notice, request or other communication shall be effective (i) if given
      by
      facsimile transmission, when transmitted to the facsimile number specified
      in
      this Section and confirmation of receipt is received, (ii) if given by
      mail, 72 hours after such communication is deposited in the mails with first
      class postage prepaid, addressed as aforesaid, or (iii) if given by any other
      means, when delivered (or, in the case of electronic transmission, received)
      at
      the address specified in this Section; provided that
      notices to the Administrative Agent under Article
      II
      shall
      not be effective until received.

     

    14.2  Limited
      Use of Electronic Mail.
      Electronic mail and internet and intranet websites may be used to distribute
      routine communications, such as financial statements and other information
      as
      provided in Section
      6.1,
      and to
      distribute Loan Documents for execution by the parties thereto, but not for
      purposes of other notices hereunder.

     

    14.3  Effectiveness
      of Facsimile Documents and Signatures.
      Loan
      Documents may be transmitted and/or signed by facsimile. The effectiveness
      of
      any such document and signature shall, subject to applicable law, have the
      same
      force and effect as a manually-signed original and shall be binding on the
      Borrower, the Administrative Agent, the LC Issuers and the Lenders. The
      Administrative Agent may also require that any such documents and signatures
      be
      confirmed by a manually-signed original thereof; provided
      that the
      failure to request or deliver the same shall not limit the effectiveness of
      any
      facsimile document or signature.

     

    ARTICLE
      XV  

     

    COUNTERPARTS

     

    This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one agreement, and any of the parties hereto
      may execute this Agreement by signing any such counterpart. This Agreement
      shall be effective when it has been executed by the Borrower, the Guarantors,
      the Administrative Agent, the LC Issuers and the Lenders and each party has
      notified the Administrative Agent by facsimile transmission or telephone that
      it
      has taken such action.

     

    ARTICLE
      XVI  

     

    CHOICE
      OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     

    16.1  CHOICE
      OF LAW.
      THE
      LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW
      PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING
      735 ILCS 105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW
      PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
      APPLICABLE TO NATIONAL BANKS.

     

    16.2  CONSENT
      TO JURISDICTION.
      EACH OF
      THE BORROWER AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
      JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN
      CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
      ANY
      LOAN DOCUMENTS, AND THE BORROWER AND EACH GUARANTOR HEREBY IRREVOCABLY AGREE
      THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
      DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVE ANY OBJECTION IT MAY NOW
      OR
      HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
      IN
      SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL
      LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT, ANY LC ISSUER OR ANY LENDER TO
      BRING PROCEEDINGS AGAINST THE BORROWER OR ANY GUARANTOR IN THE COURTS OF ANY
      OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER OR ANY GUARANTOR
      AGAINST THE ADMINISTRATIVE AGENT, ANY LC ISSUER OR ANY LENDER, OR ANY AFFILIATE
      OF THE ADMINISTRATIVE AGENT, ANY LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY
      OR
      INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
      WITH
      ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS
      .

     

    16.3  WAIVER
      OF JURY TRIAL.
      THE
      BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT, EACH LC ISSUER AND EACH
      LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
      OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE)
      IN
      ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR
      THE
      RELATIONSHIP ESTABLISHED THEREUNDER.

     

    [Signature
      Pages Follow]

    1.1  

     

    
      
        
          
            	
                    13285046
                      01789880

                  	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Borrower, the Guarantors, the Lenders, the LC Issuers,
      the
      Syndication Agent and the Administrative Agent have executed this Agreement
      as
      of the date first above written.

     

    

    VECTREN
      UTILITY HOLDINGS, INC.,
      as the
      Borrower

    

    By:/s/
      Robert L.
      Goocher                                  

    Name: Robert
      L. Goocher

    Title:  
      Vice President and Treasurer

    

    INDIANA
      GAS COMPANY, INC.,
      as
      Guarantor

     

    By:/s/
      Robert L.
      Goocher                                  

    Name: Robert
      L. Goocher

    Title:  
      Vice President and Treasurer

    SOUTHERN
      INDIANA GAS AND ELECTRIC COMPANY,
      as
      Guarantor

     

    By:/s/
      Robert L.
      Goocher                                  

    Name: Robert
      L. Goocher

    Title:  
      Vice President and Treasurer

    

    VECTREN
      ENERGY DELIVERY OF OHIO, INC.,
      as
      Guarantor

     

    By:/s/
      Robert L.
      Goocher                                  

    Name: Robert
      L. Goocher

    Title:  
      Vice President and Treasurer

    

    JPMORGAN
      CHASE BANK, N.A.,
      Individually, as Administrative Agent and as an LC Issuer

    

    By:/s/
      Robert C.
      Mertensotto                       

    Name:
      Robert C. Mertensotto

    Title:
      Managing Director

    LASALLE
      BANK NATIONAL ASSOCIATION,

    Individually,
      as Syndication Agent and as an LC Issuer

    

    By:/s/
      Sean P
      Drinan                                 

    Name:
      Sean P Drinan

    Title:
      First Vice President

    WACHOVIA
      BANK, N.A.

    

    By:/s/
      Allison
      Newman                             

    Name:
      Allison Newman

    Title: Vice
      President

    FIFTH
      THIRD BANK

    

    By:/s/
      Dwight
      Hamilon                                 
                 

    Name:
      Dwight Hamilon

    Title:
      Senior Vice President

    MIZUHO
      CORPORATE BANK, LTD.

    

    By:/s/
      Raymond
      Ventura                                   

    Name:
      Raymond Ventura

    Title:
      Deputy General Manager 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    UNION
      BANK OF CALIFORNIA, N.A.

    

    By:/s/
      Susan K.
      Johnson                         

    Name:
      Susan K. Johnson

    Title:
      Vice President

    U.S.
      BANK NATIONAL ASSOCIATION

    

    By:/s/
      Karen
      Meyer                                     

    Name:
      Karen Meyer

    Title:
      Vice President

    BANK
      OF AMERICA, N.A.

    

    By:/s/
      Brian
      Sallee                                      

    Name:
      Brian Sallee

    Title:
      Vice President

    REGIONS
      BANK

    

    By:/s/
      Scott A
      Dvornik                        

    Name:
      Scott A Dvornik

    Title:
      Vice President

    NATIONAL
      CITY BANK, INDIANA

    

    By:/s/
      Tracy J.
      Venable                      

    Name:
      Tracy J. Venable

    Title:
      Vice President

    THE
      BANK OF NEW YORK

    

    By:/s/
      Cynthia D.
      Howells                 

    Name:
      Cynthia D. Howells

    Title:
      Vice President

    OLD
      NATIONAL BANK

    

    By:/s/
      Sara L.
      Miller                       

    Name:
      Sara L. Miller

    Title:
      Vice President

    INTEGRA
      BANK NATIONAL ASSOCIATION

    

    By:/s/
      Jeffrey D.
      Jackson                    

    Name:
      Jeffrey D. Jackson

    Title:
      Senior Vice President

    

    

    
      
        
          
            	
                    13285046
                      01789880

                  	 	
                    VUHI
                      Credit Agreement

                  

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    PRICING
      SCHEDULE

     

    
      	
              Pricing

            	
              Level
                I Status

            	
              Level
                II Status

            	
              Level
                III Status

            	
              Level
                IV Status

            	
              Level
                V Status

            	
              Level
                VI Status

            
	
              Applicable
                Margin for Eurodollar Advances

            	
              0.230%

            	
              0.270%

            	
              0.350%

            	
              0.425%

            	
              0.500%

            	
              0.800%

            
	
              Applicable
                Margin for Floating Rate Advances

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            
	
              Applicable
                Fee Rate

            	
              0.07%

            	
              0.08%

            	
              0.10%

            	
              0.125%

            	
              0.15%

            	
              0.20%

            

    

       

      In
        addition, at any time that
        the
        Aggregate Outstanding Credit Exposure exceeds 50% of the Aggregate
        Commitment,
        then
        the Applicable Margin for Floating Rate Advances and Eurodollar Advances
        shall
        be increased by 0.10%.

     

    For
      the
      purposes of this Schedule, the following terms have the following meanings,
      subject to the final paragraph of this Schedule:

     

    “Level
      I
      Status” exists at any date if, on such date, the Borrower’s Moody’s Rating is A2
      or better or the Borrower’s S&P Rating is A or better.

     

    “Level
      II
      Status” exists at any date if, on such date, (i) the Borrower has not qualified
      for Level I Status and (ii) the Borrower’s Moody’s Rating is A3 or better or the
      Borrower’s S&P Rating is A- or better.

     

    “Level
      III Status” exists at any date if, on such date (i) the Borrower has not
      qualified for Level I Status or Level II Status and (ii) the Borrower’s Moody’s
      Rating is Baa1 or better and the Borrower’s S&P Rating is BBB+ or
      better.

     

    “Level
      IV
      Status” exists at any date if, on such date (i) the Borrower has not qualified
      for Level I Status, Level II Status or Level III Status and (ii) the Borrower’s
      Moody’s Rating is Baa2 or better and the Borrower’s S&P Rating is BBB or
      better.

     

    “Level
      V
      Status” exists at any date if, on such date (i) the Borrower has not qualified
      for Level I Status, Level II Status, Level III Status or Level IV Status and
      (ii) the Borrower’s Moody’s Rating is Baa3 or better and the Borrower’s S&P
      Rating is BBB- or better.

     

    “Level
      VI
      Status” exists at any date if, on such date, the Borrower has not qualified for
      Level I Status, Level II Status, Level III Status, Level IV Status or Level
      V
      Status.

     

    “Moody’s
      Rating”
means,
      at any time, the credit rating issued by Moody’s Investors Service, Inc. and
      then in effect with respect to the Borrower’s senior unsecured long-term debt
      securities without third-party credit enhancement.

     

    “Rating”
      means the S&P Rating or the Moody’s Rating.

     

    “S&P
      Rating”
means,
      at any time, the credit rating issued by Standard and Poor’s Rating Services, a
      division of The McGraw Hill Companies, Inc., and then in effect with respect
      to
      the Borrower’s senior unsecured long-term debt securities without third-party
      credit enhancement.

     

    “Status”
means
      either Level I Status, Level II Status, Level III Status, Level IV Status,
      Level
      V Status or Level VI Status.

     

    The
      Applicable Margin and Applicable Fee Rate shall be determined in accordance
      with
      the foregoing table based on the Borrower’s Status as determined from its
      then-current Moody’s and S&P Ratings. The credit rating in effect on any
      date for the purposes of this Schedule is that in effect at the close of
      business on such date. If at any time the Borrower has no Moody’s Rating or no
      S&P Rating, but has a Rating, the Status shall be determined based on the
      Rating that is then in effect. If at any time the Borrower has no Moody’s Rating
      and has no S&P Rating, Level VI Status shall exist. If the Borrower is split
      rated and the rating differential is two credit rating levels or more, then
      the
      intermediate credit rating at the midpoint (or, if there is no midpoint, the
      higher of the two credit ratings) shall apply.

     

    

    
      
        
          
            	
                    13285046
                      01789880

                  	 	
                    t

                  

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      I

    

    COMMITMENTS

    

    
      	
              Lender

            	
              Commitment
                

            
	
               

            	
               

            
	
              JPMorgan
                Chase Bank, N.A.

            	
              $50,000,000

            
	
              LaSalle
                Bank National Association

            	
              $50,000,000

            
	
              Wachovia
                Bank, N.A.

            	
              $50,000,000

            
	
              Fifth
                Third Bank

            	
              $35,000,000

            
	
              Mizuho
                Corporate Bank, Ltd.

            	
              $35,000,000

            
	
              Union
                Bank of California, N.A.

            	
              $70,000,000

            
	
              US
                Bank National Association

            	
              $35,000,000

            
	
              Bank
                of America, N.A.

            	
              $50,000,000

            
	
              Regions
                Bank

            	
              $30,000,000

            
	
              National
                City Bank, Indiana

            	
              $40,000,000

            
	
              The
                Bank of New York

            	
              $35,000,000

            
	
              Old
                National

            	
              $20,000,000

            
	
              Integra
                Bank National Association

            	
              $15,000,000

            
	 	 
	
              Total

            	
              $515,000,000Exhibit 10.25

    
      	
              Ex
                10.25

               

               

               

               

               

              CREDIT
                AGREEMENT

               

               

               

               

               

               

               

              among

               

               

               

               

               

              VECTREN
                CAPITAL, CORP.,

               

              as
                Borrower,

               

               

               

              VECTREN
                CORPORATION,

               

              as
                Guarantor,

               

               

               

              THE
                LENDERS SIGNATORY HERETO, 

               

              FIFTH
                THIRD BANK,

               

              U.S.
                BANK NATIONAL ASSOCIATION and

               

              WACHOVIA
                BANK, N.A.,

               

              as
                Co-Documentation Agents

               

               

              JPMORGAN
                CHASE BANK, N.A.,

               

               

              as
                Syndication Agent,

               

               

              and

               

               

               

               

               

              LASALLE
                BANK NATIONAL ASSOCIATION,

               

               

              as
                Administrative Agent and LC Issuer

               

               

               

               

               

               

               

               

               

               

               

               

               

               

              Dated
                as of November 10, 2005

               

               

              J.P.
                MORGAN SECURITIES, INC.

              and

              LASALLE
                BANK NATIONAL ASSOCIATION

               

              JOINT
                LEAD ARRANGERS AND BOOK RUNNERS

               

            

    

    

    
      
        
          
            	
                    13284408
                      01712640

                  	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
      	1.  	
              ARTICLE
                IDEFINITIONS1

            

    

     

    
      	2.  	
              ARTICLE
                IITHE
                CREDITS12

            

    

     

    
      	1.  	
              2.1.Commitments12

            

    

     

    
      	2.  	
              2.2.Required
                Payments; Termination13

            

    

     

    
      	3.  	
              2.3.Ratable
                Loans13

            

    

     

    
      	4.  	
              2.4.Types
                of Advances14

            

    

     

    
      	5.  	
              2.5.Facility
                Fee; Reductions in Aggregate Commitment14

            

    

     

    
      	6.  	
              2.6.Minimum
                Amount of Each Advance14

            

    

     

    
      	7.  	
              2.7.Optional
                Principal Payments14

            

    

     

    
      	8.  	
              2.8.Method
                of Selecting Types and Interest Periods for New Advances15

            

    

     

    
      	9.  	
              2.9.Conversion
                and Continuation of Outstanding Advances16

            

    

     

    
      	10.  	
              2.10.Changes
                in Interest Rate, etc16

            

    

     

    
      	11.  	
              2.11.Rates
                Applicable After Default17

            

    

     

    
      	12.  	
              2.12.Method
                of Payment17

            

    

     

    
      	13.  	
              2.13.Notes;
                Telephonic Notices17

            

    

     

    
      	14.  	
              2.14.Interest
                Payment Dates; Interest and Fee Basis18

            

    

     

    
      	15.  	
              2.15.Notification
                of Advances, Interest Rates, Prepayments and Commitment
                Reductions18

            

    

     

    
      	16.  	
              2.16.Lending
                Installations18

            

    

     

    
      	17.  	
              2.17.Non-Receipt
                of Funds by the Administrative Agent19

            

    

     

    
      	18.  	
              2.18.Issuance
                of Letters of Credit19

            

    

     

    
      	19.  	
              2.19.Letters
                of Credit Participation20

            

    

     

    
      	20.  	
              2.20.Compensation
                for Letters of Credit21

            

    

     

    
      	21.  	
              2.21.Reimbursement
                of Letters of Credit22

            

    

     

    
      	22.  	
              2.22.Use
                of Proceeds23

            

    

     

    
      	23.  	
              2.23.Increases
                in Aggregate Commitment23

            

    

     

    
      	24.  	
              2.24.Extension
                of Commitment Termination Date24

            

    

     

    
      	3.  	
              ARTICLE
                IIIYIELD
                PROTECTION; TAXES25

            

    

     

    
      	25.  	
              3.1.Yield
                Protection25

            

    

     

    
      	26.  	
              3.2.Changes
                in Capital Adequacy Regulations26

            

    

     

    
      	27.  	
              3.3.Availability
                of Types of Advances26

            

    

     

    
      	28.  	
              3.4.Funding
                Indemnification26

            

    

     

    
      	29.  	
              3.5.Taxes26

            

    

     

    
      	30.  	
              3.6.Lender
                Statements; Survival of Indemnity29

            

    

     

    
      	31.  	
              3.7.Replacement
                of Lenders29

            

    

     

    
      	4.  	
              ARTICLE
                IVCONDITIONS
                PRECEDENT30

            

    

     

    
      	32.  	
              4.1.Initial
                Credit Extension30

            

    

     

    
      	33.  	
              4.2.Each
                Credit Extension31

            

    

     

    
      	5.  	
              ARTICLE
                VREPRESENTATIONS
                AND WARRANTIES32

            

    

     

    
      	34.  	
              5.1.Existence
                and Standing32

            

    

     

    
      	35.  	
              5.2.Authorization
                and Validity32

            

    

     

    
      	36.  	
              5.3.No
                Conflict; Government Consent32

            

    

     

    
      	37.  	
              5.4.Financial
                Statements32

            

    

     

    
      	38.  	
              5.5.Material
                Adverse Change33

            

    

     

    
      	39.  	
              5.6.Taxes33

            

    

     

    
      	40.  	
              5.7.Litigation
                and Contingent Obligations33

            

    

     

    
      	41.  	
              5.8.Subsidiaries33

            

    

     

    
      	42.  	
              5.9.ERISA33

            

    

     

    
      	43.  	
              5.10.Accuracy
                of Information34

            

    

     

    
      	44.  	
              5.11.Regulation
                U34

            

    

     

    
      	45.  	
              5.12.Material
                Agreements34

            

    

     

    
      	46.  	
              5.13.Compliance
                With Laws34

            

    

     

    
      	47.  	
              5.14.Ownership
                of Properties34

            

    

     

    
      	48.  	
              5.15.Plan
                Assets; Prohibited Transactions34

            

    

     

    
      	49.  	
              5.16.Environmental
                Matters34

            

    

     

    
      	50.  	
              5.17.Investment
                Company Act35

            

    

     

    
      	51.  	
              5.18.Insurance35

            

    

     

    
      	52.  	
              5.19.Solvency35

            

    

     

    
      	53.  	
              5.20.Public
                Utility Holding Company Act35

            

    

     

    
      	54.  	
              5.21.Reportable
                Transaction36

            

    

     

    
      	55.  	
              5.22.Existing
                Credit Agreement36

            

    

     

    
      	6.  	
              ARTICLE
                VICOVENANTS36

            

    

     

    
      	56.  	
              6.1.Financial
                Reporting36

            

    

     

    
      	57.  	
              6.2.Use
                of Proceeds38

            

    

     

    
      	58.  	
              6.3.Notice
                of Default38

            

    

     

    
      	59.  	
              6.4.Conduct
                of Business38

            

    

     

    
      	60.  	
              6.5.Taxes38

            

    

     

    
      	61.  	
              6.6.Insurance38

            

    

     

    
      	62.  	
              6.7.Compliance
                with Laws38

            

    

     

    
      	63.  	
              6.8.Maintenance
                of Properties39

            

    

     

    
      	64.  	
              6.9.Inspection39

            

    

     

    
      	65.  	
              6.10.Dividends39

            

    

     

    
      	66.  	
              6.11.Indebtedness39

            

    

     

    
      	67.  	
              6.12.Merger41

            

    

     

    
      	68.  	
              6.13.Sale
                of Assets41

            

    

     

    
      	69.  	
              6.14.Investments
                and Acquisitions41

            

    

     

    
      	70.  	
              6.15.Liens42

            

    

     

    
      	71.  	
              6.16.Affiliates43

            

    

     

    
      	72.  	
              6.17.Leverage
                Ratio43

            

    

     

    
      	73.  	
              6.18.Certain
                Restrictions43

            

    

     

    
      	7.  	
              ARTICLE
                VIIDEFAULTS44

            

    

     

    
      	8.  	
              ARTICLE
                VIIIACCELERATION,
                WAIVERS, AMENDMENTS AND REMEDIES46

            

    

     

    
      	74.  	
              8.1.Acceleration46

            

    

     

    
      	75.  	
              8.2.Remedies
                Not Exclusive46

            

    

     

    
      	76.  	
              8.3.Deposit
                to Secure Reimbursement Obligations47

            

    

     

    
      	77.  	
              8.4.Subrogation47

            

    

     

    
      	78.  	
              8.5.Amendments47

            

    

     

    
      	79.  	
              8.6.Preservation
                of Rights48

            

    

     

    
      	9.  	
              ARTICLE
                IXGENERAL
                PROVISIONS49

            

    

     

    
      	80.  	
              9.1.Survival
                of Representations49

            

    

     

    
      	81.  	
              9.2.Governmental
                Regulation49

            

    

     

    
      	82.  	
              9.3.Headings49

            

    

     

    
      	83.  	
              9.4.Entire
                Agreement49

            

    

     

    
      	84.  	
              9.5.Several
                Obligations; Benefits of this Agreement49

            

    

     

    
      	85.  	
              9.6.Expenses;
                Indemnification49

            

    

     

    
      	86.  	
              9.7.Numbers
                of Documents50

            

    

     

    
      	87.  	
              9.8.Accounting50

            

    

     

    
      	88.  	
              9.9.Severability
                of Provisions50

            

    

     

    
      	89.  	
              9.10.Nonliability
                of Lenders50

            

    

     

    
      	90.  	
              9.11.Confidentiality51

            

    

     

    
      	91.  	
              9.12.Nonreliance51

            

    

     

    
      	92.  	
              9.13.Disclosure51

            

    

     

    
      	93.  	
              9.14.Patriot
                Act Notification51

            

    

     

    
      	10.  	
              ARTICLE
                XTHE
                ADMINISTRATIVE AGENT51

            

    

     

    
      	94.  	
              10.1.Appointment;
                Nature of Relationship51

            

    

     

    
      	95.  	
              10.2.Powers52

            

    

     

    
      	96.  	
              10.3.General
                Immunity52

            

    

     

    
      	97.  	
              10.4.No
                Responsibility for Loans, Recitals, etc52

            

    

     

    
      	98.  	
              10.5.Action
                on Instructions of Lenders53

            

    

     

    
      	99.  	
              10.6.Employment
                of Agents and Counsel53

            

    

     

    
      	100.  	
              10.7.Reliance
                on Documents; Counsel53

            

    

     

    
      	101.  	
              10.8.Agent’s
                Reimbursement and Indemnification53

            

    

     

    
      	102.  	
              10.9.Notice
                of Default54

            

    

     

    
      	103.  	
              10.10.Rights
                as a Lender54

            

    

     

    
      	104.  	
              10.11.Lender
                Credit Decision54

            

    

     

    
      	105.  	
              10.12.Successor
                Administrative Agent54

            

    

     

    
      	106.  	
              10.13.Administrative
                Agent’s and Arrangers’ Fees55

            

    

     

    
      	107.  	
              10.14.Delegation
                to Affiliates55

            

    

     

    
      	108.  	
              10.15.Agent
                May File Proofs of Claim55

            

    

     

    
      	109.  	
              10.16.Other
                Agents56

            

    

     

    
      	11.  	
              ARTICLE
                XISETOFF;
                RATABLE PAYMENTS56

            

    

     

    
      	110.  	
              11.1.Setoff56

            

    

     

    
      	111.  	
              11.2.Ratable
                Payments56

            

    

     

    
      	12.  	
              ARTICLE
                XIIBENEFIT
                OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS57

            

    

     

    
      	112.  	
              12.1.Successors
                and Assigns57

            

    

     

    
      	113.  	
              12.2.Participations57

            

    

     

    
      	114.  	
              12.3.Assignments58

            

    

     

    
      	115.  	
              12.4.Dissemination
                of Information59

            

    

     

    
      	116.  	
              12.5.Tax
                Treatment59

            

    

     

    
      	13.  	
              ARTICLE
                XIIIGUARANTY59

            

    

     

    
      	117.  	
              13.1.Guaranty59

            

    

     

    
      	118.  	
              13.2.Waivers60

            

    

     

    
      	119.  	
              13.3.Guaranty
                Absolute60

            

    

     

    
      	120.  	
              13.4.Acceleration61

            

    

     

    
      	121.  	
              13.5.Marshaling;
                Reinstatement61

            

    

     

    
      	122.  	
              13.6.Delay
                of Subrogation61

            

    

     

    
      	14.  	
              ARTICLE
                XIVNOTICES62

            

    

     

    
      	123.  	
              14.1.Notices62

            

    

     

    
      	124.  	
              14.2.Change
                of Address63

            

    

     

    
      	15.  	
              ARTICLE
                XVCOUNTERPARTS63

            

    

     

    
      	16.  	
              ARTICLE
                XVICHOICE
                OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL63

            

    

     

    
      	125.  	
              16.1.CHOICE
                OF LAW63

            

    

     

    
      	126.  	
              16.2.CONSENT
                TO JURISDICTION63

            

    

     

    
      	127.  	
              16.3.WAIVER
                OF JURY TRIAL64

            

    

     

    

     

    
      
        
          
            	
                    13284408
                      01712640

                  	
                     

                  	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    CREDIT
      AGREEMENT

     

    This
      Agreement, dated as of November 10, 2005, is among VECTREN CAPITAL, CORP.,
      VECTREN CORPORATION, the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as
      Syndication Agent, and LASALLE BANK NATIONAL ASSOCIATION, as LC Issuer and
      as
      Administrative Agent. The parties hereto agree as follows:

     

    ARTICLE
      I  

     

    

     

    DEFINITIONS

     

    As
      used
      in this Agreement:

     

    “Acquisition”
means
      any transaction, or any series of related transactions, consummated on or after
      the date of this Agreement, by which Borrower or any of its Subsidiaries (i)
      acquires any going business or all or substantially all of the assets of any
      firm, corporation or limited liability company, or division thereof, whether
      through purchase of assets, merger or otherwise or (ii) directly or indirectly
      acquires (in one transaction or as the most recent transaction in a series
      of
      transactions) at least a majority (in number of votes) of the securities of
      a
      corporation which have ordinary voting power for the election of directors
      (other than securities having such power only by reason of the happening of
      a
      contingency) or a majority (by percentage or voting power) of the outstanding
      ownership interests of a partnership or limited liability company.

     

    “Administrative
      Agent”
means
      LaSalle Bank National Association in its capacity as contractual representative
      of the Lenders pursuant to Article
      X,
      and not
      in its individual capacity as a Lender, and any successor Administrative Agent
      appointed pursuant to Article
      X.

     

    “Advance”
means
      a
      borrowing hereunder (or conversion or continuation thereof) consisting of the
      aggregate amount of the several Loans made on the same Borrowing Date (or date
      of conversion or continuation) by the Lenders to Borrower of the same Type
      and,
      in the case of Eurodollar Advances, for the same Interest Period. The term
      “Advance” shall include Advances under the Swingline unless otherwise expressly
      provided.

     

    “Affiliate”
of
      any
      Person means any other Person directly or indirectly controlling, controlled
      by
      or under common control with such Person. A Person shall be deemed to control
      another Person if the controlling Person owns 10% or more of any class of voting
      securities (or other ownership interests) of the controlled Person or possesses,
      directly or indirectly, the power to direct or cause the direction of the
      management or policies of the controlled Person, whether through ownership
      of
      stock, by contract or otherwise.

     

    “Aggregate
      Commitment”
means
      the aggregate of the Commitments of all the Lenders, as changed from time to
      time pursuant to the terms hereof. On the date hereof, the amount of the
      Aggregate Commitment is $255,000,000.

     

    “Aggregate
      Outstanding Credit Exposure”
means,
      at any time, the sum of (i) the aggregate principal amount of the Advances
      at
      such time plus (ii) the LC Obligations at such time.

     

    “Agreement”
means
      this Credit Agreement, as it may be amended or modified and in effect from
      time
      to time.

     

    “Agreement
      Accounting Principles”
means
      generally accepted accounting principles as in effect from time to time, applied
      in a manner consistent with that used in preparing the financial statements
      referred to in Section 5.4.

     

    “Alternate
      Base Rate”
means,
      for any day, a rate of interest per annum equal to the higher of (i) the Prime
      Rate for such day and (ii) the sum of the Federal Funds Effective Rate for
      such
      day plus
      1/2% per
      annum.

     

    “Applicable
      Fee Rate”
means,
      at any time, the percentage rate per annum at which facility fees are accruing
      on the Aggregate Commitment (without regard to usage) and Letter of Credit
      fees
      at such time as set forth in the Pricing Schedule.

     

    “Applicable
      Margin”
means,
      at any time, with respect to Advances of any Type at any time, the percentage
      rate per annum which is applicable at such time with respect to Advances of
      such
      Type, as set forth in the Pricing Schedule.

     

    “Arrangers”
means
      each of JPMorgan Securities, Inc. and LaSalle Bank National Association, in
      their capacities as Joint Lead Arrangers and Book Runners.

     

    “Article”
means
      an article of this Agreement unless another document is specifically
      referenced.

     

    “Authorized
      Officer”
means
      any Vice President, the Secretary, the Treasurer, the Assistant Secretary and
      Assistant Treasurer of Borrower, acting singly.

     

    “Borrower”
means
      Vectren Capital, Corp., an Indiana corporation, and its successors and
      assigns.

     

    “Borrowing
      Date”
means
      a
      date on which a Credit Extension is made hereunder.

     

    “Borrowing
      Notice”
—
see
      Section 2.8.

     

    “BSA”
—
see
      Section
      6.7.

     

    “Business
      Day”
means
      (i) with respect to any borrowing, payment or rate selection of Eurodollar
      Advances, a day (other than a Saturday or Sunday) on which banks generally
      are
      open in Chicago, New York and Indianapolis for the conduct of substantially
      all
      of their commercial lending activities and on which dealings in United States
      dollars are carried on in the London interbank market and (ii) for all other
      purposes, a day (other than a Saturday or Sunday) on which banks generally
      are
      open in Chicago and Indianapolis for the conduct of substantially all of their
      commercial lending activities.

     

    “Capitalized
      Lease”
of
      a
      Person means any lease of Property by such Person as lessee which would be
      capitalized on a balance sheet of such Person prepared in accordance with
      Agreement Accounting Principles.

     

    “Capitalized
      Lease Obligations”
of
      a
      Person means the amount of the obligations of such Person under Capitalized
      Leases which would be shown as a liability on a balance sheet of such Person
      prepared in accordance with Agreement Accounting Principles.

     

    “Cash
      Equivalent Investments”
means
      (i) short-term obligations of, or fully guaranteed by, the United States of
      America, (ii) commercial paper rated A-1 or better by S&P or P-1 or better
      by Moody’s, (iii) demand deposit accounts maintained in the ordinary course of
      business, and (iv) certificates of deposit issued by and time deposits with
      commercial banks (whether domestic or foreign) having capital and surplus in
      excess of $100,000,000; provided
      in each
      case that the same provides for payment of both principal and interest (and
      not
      principal alone or interest alone) and is not subject to any contingency
      regarding the payment of principal or interest.

     

    “Change
      in Control”
means
      (i) the acquisition by any Person, or two or more Persons acting in concert,
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of 30% or more
      of
      the outstanding shares of voting stock of Guarantor, (ii) the occurrence during
      any period of twelve (12) consecutive months, commencing before or after the
      date of this Agreement, pursuant to which individuals who on the first day
      of
      such period were directors of Guarantor (together with any replacement or
      additional directors who were nominated or elected by a majority of directors
      then in office) cease to constitute a majority of the Board of Directors of
      Guarantor or (iii) Guarantor shall cease to own, free and clear of any Lien,
      100% of the issued and outstanding capital stock of Borrower.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, reformed or otherwise modified
      from time to time.

     

    “Commitment”
means,
      for each Lender, the obligation of such Lender to make Loans to, and participate
      in Letters of Credit issued upon the application of, Borrower in an aggregate
      amount not exceeding the amount set forth opposite its name on Schedule
      I
      or as
      set forth in any Notice of Assignment relating to any assignment that has become
      effective pursuant to Section 12.3.2,
      as such
      amount may be modified from time to time pursuant to the terms
      hereof.

     

    “Commitment
      Termination Date”
means
      November 10, 2010, any later date as may be established pursuant to Section
      2.24
      or any
      earlier date on which the Aggregate Commitment is reduced to zero or otherwise
      terminated pursuant to the terms hereof.

     

    “Consolidated
      Indebtedness”
means
      at any time the Indebtedness of a Person and its Subsidiaries calculated on
      a
      consolidated basis as of such time.

     

    “Consolidated
      Net Worth”
means
      at any time the consolidated stockholders’ equity of a Person and its
      Subsidiaries calculated on a consolidated basis as of such time.

     

    “Contingent
      Obligation”
of
      a
      Person means any agreement, undertaking or arrangement by which such Person
      assumes, guarantees, endorses, contingently agrees to purchase or provide funds
      for the payment of, or otherwise becomes or is contingently liable upon, the
      obligation or liability of any other Person (other than accounts payable of
      such
      Person’s Subsidiary arising in the ordinary course of such Subsidiary’s business
      payable on terms customary in the trade), or agrees to maintain the net worth
      or
      working capital or other financial condition of any other Person, or otherwise
      assures any creditor of such other Person against loss, including, without
      limitation, any comfort letter, operating agreement or take-or-pay
      contract.

     

    “Conversion/Continuation
      Notice”
—
see
      Section 2.9.

     

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

     

    “Credit
      Extension”
means
      the making of an Advance or the issuance of or participation in a Letter of
      Credit hereunder.

     

    “Credit
      Note”
means
      the Credit Note (Swingline), in substantially the form of Exhibit
      B hereto,
      duly executed by Borrower to LaSalle to evidence Advances under the Swingline,
      including any amendment, modification, renewal, extension or replacement
      thereof.

     

    “Default”
means
      an event described in Article
      VII.

     

    “Environmental
      Laws”
means
      any and all federal, state, local and foreign statutes, laws, judicial
      decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,
      injunctions, permits, concessions, grants, franchises, licenses, agreements
      and
      other governmental restrictions relating to (i) the protection of the
      environment, (ii) the effect of the environment on human health, (iii)
      emissions, discharges or releases of pollutants, contaminants, hazardous
      substances or wastes into surface water, ground water or land, or (iv) the
      manufacture, processing, distribution, use, treatment, storage, disposal,
      transport or handling of pollutants, contaminants, hazardous substances or
      wastes or the clean-up or other remediation thereof.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and any rule or regulation issued thereunder.

     

    “Eurodollar
      Advance”
means
      an Advance which bears interest at the applicable Eurodollar Rate.

     

    “Eurodollar
      Base Rate”
means,
      a rate of interest equal to (a) the per annum rate of interest at which United
      States dollar deposits in an amount comparable to the amount of the relevant
      Eurodollar Advance and for a period equal to the relevant Interest Period are
      offered in the London Interbank Eurodollar market at 11:00 A.M. (London time)
      two Business Days prior to the commencement of such Interest Period (or three
      Business Days prior to the commencement of such Interest Period if banks in
      London, England were not open and dealing in offshore United States dollars
      on
      such second preceding Business Day), as displayed in the Bloomberg
      Financial Markets
      system
      (or other authoritative source selected by the Administrative Agent in its
      sole
      discretion) or, if the Bloomberg
      Financial Markets
      system
      or another authoritative source is not available, as the Eurodollar Base Rate
      is
      otherwise determined by the Administrative Agent in its sole and absolute
      discretion, divided by (b) a number determined by subtracting from 1.00 the
      then
      stated maximum reserve percentage for determining reserves to be maintained
      by
      member banks of the Federal Reserve System for Eurocurrency funding or
      liabilities as defined in Regulation D (or any successor category of liabilities
      under Regulation D), such rate to remain fixed for such Interest Period. The
      Administrative Agent’s determination of the Eurodollar Base Rate shall be
      conclusive, absent manifest error.

     

    “Eurodollar
      Loan”
means
      a
      Loan which bears interest at the applicable Eurodollar Rate.

     

    “Eurodollar
      Rate”
means,
      with respect to a Eurodollar Advance for the relevant Interest Period, the
      sum
      of (i) the Eurodollar Base Rate applicable to such Interest Period, plus
      (ii) the
      Applicable Margin for Eurodollar Advances.

     

    “Excluded
      Taxes”
means,
      in the case of each Lender or applicable Lending Installation and the
      Administrative Agent, taxes imposed on its overall net income, and franchise
      taxes imposed on it, by (i) the jurisdiction under the laws of which such Lender
      or the Administrative Agent is incorporated or organized or (ii) the
      jurisdiction in which the Administrative Agent’s or such Lender’s principal
      executive office or such Lender’s applicable Lending Installation is
      located.

     

    “Exhibit”
refers
      to an exhibit to this Agreement, unless another document is specifically
      referenced.

     

    “Existing
      Credit Agreement”
means
      the Credit Agreement, dated as of September 30, 2004, among Borrower, the
      Guarantor, various financial institutions and LaSalle, as agent.

     

    “Existing
      Indebtedness”
-
      see
Section
      6.11.

     

    “Federal
      Funds Effective Rate”
means,
      for any day, a fluctuating interest rate equal for each day during such period
      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 (or, if such day is not a Business Day, for the next
      preceding Business Day) by the Federal Reserve Bank of New York, or, if such
      rate is not so published for any day which is a Business Day, the average of
      the
      quotations for such day on such transactions received by the Administrative
      Agent from three Federal funds brokers of recognized standing selected by the
      Administrative Agent. The Administrative Agent’s determination of such rate
      shall be binding and conclusive absent manifest error.

     

    “Fee
      Letters”
means
      each of (i) that certain letter agreement dated as of October 17, 2005 among
      Borrower, Vectren Utility Holdings, Inc. and LaSalle Bank National Association
      and (ii) that certain letter agreement dated as of October 17, 2005 among
      Borrower, Vectren Utility Holdings, Inc., JPMorgan Chase Bank, N.A. and JPMorgan
      Securities, Inc.

     

    “Financial
      Contract”
of
      a
      Person means (i) any exchange-traded or over-the-counter futures, forward,
      swap
      or option contract or other financial instrument with similar characteristics,
      (ii) any agreements, devices or arrangements providing for payments related
      to
      fluctuations of interest rates, exchange rates or forward rates, including,
      but
      not limited to, interest rate exchange agreements, forward currency exchange
      agreements, interest rate cap or collar protection agreements, forward rate
      currency or interest rate options or (iii) to the extent not otherwise included
      in the foregoing, any Rate Hedging Agreement.

     

    “Floating
      Rate”
means,
      for any day, a rate per annum equal to (i) the Alternate Base Rate for such
      day
plus
      (ii) the
      Applicable Margin for Floating Rate Advances, in each case changing when and
      as
      the Alternate Base Rate changes.

     

    “Floating
      Rate Advance”
means
      an Advance which bears interest at the Floating Rate.

     

    “Floating
      Rate Loan”
means
      a
      Loan which bears interest at the Floating Rate.

     

    “Guaranteed
      Obligations”
-
      see
Section
      13.1.

     

    “Guarantor”
means
      Vectren Corporation, and its successors and assigns.

     

    “Indebtedness”
of
      a
      Person means such Person’s (i) obligations for borrowed money, (ii) obligations
      representing the deferred purchase price of Property or services (other than
      accounts payable arising in the ordinary course of such Person’s business
      payable on terms customary in the trade), (iii) obligations, whether or not
      assumed, secured by Liens or payable out of the proceeds or production from
      property now or hereafter owned or acquired by such Person, (iv) obligations
      which are evidenced by notes, acceptances or other instruments, (v) obligations
      of such Person to purchase securities or other property arising out of or in
      connection with the sale of the same or substantially similar securities or
      property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations
      (other than Contingent Obligations with respect to primary obligations (other
      than Indebtedness) of Subsidiaries, which primary obligations are not prohibited
      by this Agreement), (viii) reimbursement and other obligations in connection
      with letters of credit, (ix) Net Mark-to-Market Exposure of Rate Hedging
      Agreements and other Financial Contracts, (x) Synthetic Lease Obligations and
      (xi) any other obligation for borrowed money or other financial accommodation
      which in accordance with Agreement Accounting Principles would be shown as
      a
      liability on the consolidated balance sheet of such Person.

     

    “Intercompany
      Indebtedness”
-
      see
Section
      6.11(iv).

     

    “Interest
      Period”
means,
      with respect to any Eurodollar Advance, a period of one, two, three or six
      months commencing on a Business Day selected by Borrower pursuant to this
      Agreement. Such Interest Period shall end on the day which corresponds
      numerically to such date one, two, three or six months thereafter, provided,
      however,
      that
      if
      there is no such numerically corresponding day in such next, second, third
      or
      sixth succeeding month, such Interest Period shall end on the last Business
      Day
      of such next, second, third or sixth succeeding month. If an Interest Period
      would otherwise end on a day which is not a Business Day, such Interest Period
      shall end on the next succeeding Business Day, provided,
      however, that if said next succeeding Business Day falls in a new calendar
      month, such Interest Period shall end on the immediately preceding Business
      Day.

     

    “Investment”
of
      a
      Person means any loan, advance (other than commission, travel and similar
      advances to officers and employees made in the ordinary course of business),
      extension of credit (other than accounts receivable arising in the ordinary
      course of business on terms customary in the trade) or contribution of capital
      by such Person; stocks, bonds, mutual funds, partnership interests, notes,
      debentures or other securities owned by such Person; any deposit accounts and
      certificate of deposit owned by such Person; and structured notes, derivative
      financial instruments and other similar instruments or contracts owned by such
      Person.

     

    “LaSalle”
means
      LaSalle Bank National Association, its successors and assigns.

     

    “LC
      Issuer”
means
      LaSalle in its capacity as issuer of Letter of Credit hereunder.

     

    “LC
      Obligations”
means,
      at any time, the sum, without duplication, of (i) the aggregate undrawn stated
      amount of all Letters of Credit outstanding at such time plus (ii) the aggregate
      unpaid amount at such time of all reimbursement obligations in respect of the
      Letters of Credit.

     

    “Lenders”
means
      the lending institutions listed on the signature pages of this Agreement and
      their respective successors and assigns. Unless otherwise specified, the term
      “Lenders” includes LaSalle in its capacity as the provider of the
      Swingline.

     

    “Lending
      Installation”
means,
      with respect to a Lender or the Administrative Agent, the office, branch,
      subsidiary or affiliate of such Lender or the Administrative Agent listed on
      Schedule
      14.1
      hereof
      or otherwise selected by such Lender or the Administrative Agent pursuant to
      Section 2.16.

     

    “Letter
      of Credit Application”
or
      “Application”
means,
      collectively, each Application for Standby Letter of Credit and each Application
      and Agreement for Irrevocable Letter of Credit, in the forms prescribed by
      the
      LC Issuer, duly executed by Borrower in favor of the LC Issuer, from time to
      time, to govern a Letter of Credit issued pursuant to this Agreement, as any
      such Application may be amended from time to time.

     

    “Letters
      of Credit”
means
      standby and commercial letters of credit now or hereafter issued by the LC
      Issuer from time to time at the request of, and for the account of, Borrower
      issued pursuant to this Agreement.

     

    “Lien”
means
      any lien (statutory or other), security interest, mortgage, pledge,
      hypothecation, assignment, deposit arrangement, encumbrance or preference,
      priority or other security agreement or preferential arrangement of any kind
      or
      nature whatsoever (including, without limitation, the interest of a vendor
      or
      lessor under any conditional sale, Capitalized Lease or other title retention
      agreement).

     

    “Loan”
means,
      with respect to a Lender, such Lender’s loan made pursuant to Article
      II
      (or any
      conversion or continuation thereof). The term “Loan” shall include Advances
      under the Swingline unless otherwise expressly provided.

     

    “Loan
      Documents”
means
      this Agreement, the Fee Letters, the Notes, any Letter of Credit Application,
      the Master Letter of Credit Agreement and any other documents or instruments
      now
      or hereafter executed and delivered by or on behalf of Borrower to the
      Administrative Agent or the Lenders to further evidence or govern the
      Obligations.

     

    “Mandatory
      Funding”
-
      see
Section
      2.3.

     

    “Master
      Letter of Credit Agreement”
means,
      at any time, with respect to the issuance of Letters of Credit, a master letter
      of credit agreement or reimbursement agreement in the form, if any, being used
      by the LC Issuer at such time.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (i) the business, Property, condition (financial
      or
      otherwise) or results of operations of Guarantor and its Subsidiaries taken
      as a
      whole, (ii) the ability of Borrower or Guarantor to perform its obligations
      under the Loan Documents, or (iii) the validity or enforceability of any of
      the
      Loan Documents or the rights or remedies of the Administrative Agent, the LC
      Issuer or the Lenders thereunder.

     

    “Material
      Indebtedness”
—
see
      Section 7.5.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc.

     

    “Mortgage
      Indenture”
means
      the Mortgage and Deed of Trust, dated as of April 1, 1932, between Southern
      Indiana Gas and Electric Company and Bankers Trust Company (as supplemented
      from
      time to time before or after the date hereof by various supplemental indentures
      thereto).

     

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

     

    “Negotiated
      Rate”
shall
      mean, with respect to Advances under the Swingline not constituting Floating
      Rate Advances, the interest rate mutually agreed upon between LaSalle and
      Borrower to be applicable to Negotiated Rate Advances pursuant to Section 2.4.2.

     

    “Negotiated
      Rate Advance”
means
      an Advance which bears interest by reference to a Negotiated Rate.

     

    “Negotiated
      Rate Interest Period”
shall
      mean, with respect to any Negotiated Rate Advance, the period commencing on
      the
      day such Negotiated Rate Advance is made and ending on such day thereafter,
      as
      mutually agreed upon between Borrower and LaSalle, provided
      that (a)
      no Negotiated Rate Interest Period shall exceed thirty (30) days; (b) each
      Negotiated Rate Interest Period which would otherwise end on a day which is
      not
      a Business Day shall be extended to the next succeeding Business Day,
provided,
      however, if the next succeeding Business Day would extend the Negotiated Rate
      Interest Period beyond thirty (30) days, then the next preceding Business Day;
      and (c) no Negotiated Rate Interest Period may be agreed upon that extends
      beyond the Commitment Termination Date.

     

    “Net
      Mark-to-Market Exposure”
of
      a
      Person means, as of any date of determination, the excess (if any) of all
      unrealized losses over all unrealized profits of such Person arising from Rate
      Hedging Agreements or other Financial Contracts. “Unrealized losses” means the
      fair market value of the cost to such Person of replacing such Rate Hedging
      Agreement or other Financial Contract as of the date of determination (assuming
      the Rate Hedging Agreement or other Financial Contract were to be terminated
      as
      of that date), and “unrealized profits” means the fair market value of the gain
      to such Person of replacing such Rate Hedging Agreement or other Financial
      Contract as of the date of determination (assuming such Rate Hedging Agreement
      or other Financial Contract were to be terminated as of that date).

     

    “Non-U.S.
      Lender”
—
see
      Section 3.5(iv).

     

    “Notes”
means,
      collectively, the Revolving Credit Notes and the Credit Note.

     

    “Notice
      of Assignment”
—
see
      Section 12.3.2.

     

    “Obligations”
means
      all unpaid principal of and accrued and unpaid interest on the Loans,
      reimbursement obligations under the Letters of Credit, all accrued and unpaid
      fees and all expenses, reimbursements, indemnities and other obligations of
      Borrower to the Lenders or to any Lender, the LC Issuer, the Administrative
      Agent or any indemnified party arising under the Loan Documents.

     

    “OFAC”
—
see
      Section
      6.7.

     

    “Other
      Taxes”
—
see
      Section 3.5(ii).

     

    “Participants”
—
see
      Section 12.2.1.

     

    “Payment
      Date”
means
      the last Business Day of each month.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Person”
means
      any natural person, corporation, firm, joint venture, partnership, limited
      liability company, association, enterprise, trust or other entity or
      organization, or any government or political subdivision or any agency,
      department or instrumentality thereof.

     

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

     

    “Prime
      Rate”
means,
      for any day, the rate of interest in effect for such day as publicly announced
      from time to time by the Administrative Agent as its prime rate (whether or
      not
      such rate is actually charged by the Administrative Agent), which is not
      intended to be the Administrative Agent’s lowest or most favorable rate of
      interest at any one time. Any change in the Prime Rate announced by the
      Administrative Agent shall take effect at the opening of business on the day
      specified in the public announcement of such change; provided
      that the
      Administrative Agent shall not be obligated to give notice of any change in
      the
      Prime Rate.

     

    “Pro
      Rata Share”
means,
      as to any Lender, when used with reference to an aggregate or total amount,
      an
      amount equal to the product of (a) such aggregate or total amount, multiplied
      by (b) a
      fraction, the numerator of which shall be the sum of such Lender’s Commitment
      (or, if the Commitments have been terminated, the sum of such Lender’s
      outstanding Revolving Loans and participations in outstanding Letters of Credit)
      and the denominator of which shall be the Aggregate Commitment (or, if the
      Commitments have been terminated, the sum of the total outstanding Revolving
      Loan Advances and the aggregate face amount of outstanding Letters of
      Credit).

     

    “Property”
of
      a
      Person means any and all property, whether real, personal, tangible, intangible,
      or mixed, of such Person, or other assets owned, leased or operated by such
      Person.

     

    “Purchasers”
—
see
      Section 12.3.1.

     

    “Rate
      Hedging Agreement”
means
      an agreement, device or arrangement providing for payments which are related
      to
      fluctuations of interest rates, exchange rates or forward rates, including,
      but
      not limited to, dollar-denominated or cross-currency interest rate exchange
      agreements, forward currency exchange agreements, interest rate cap or collar
      protection agreements, forward rate currency or interest rate options, puts
      and
      warrants.

     

    “Rate
      Hedging Obligations”
of
      a
      Person means any and all obligations of such Person, whether absolute or
      contingent and howsoever and whensoever created, arising, evidenced or acquired
      (including all renewals, extensions and modifications thereof and substitutions
      therefor), under (i) any and all Rate Hedging Agreements, and (ii) any and
      all
      cancellations, buy backs, reversals, terminations or assignments of any Rate
      Hedging Agreement.

     

    “Register”
—
see
      Section 12.3.4.

     

    “Regulation
      D”
means
      Regulation D of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor thereto or other regulation or official
      interpretation of said Board of Governors relating to reserve requirements
      applicable to member banks of the Federal Reserve System.

     

    “Regulation
      U”
means
      Regulation U of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor or other regulation or official
      interpretation of said Board of Governors relating to the extension of credit
      by
      banks for the purpose of purchasing or carrying margin stocks applicable to
      member banks of the Federal Reserve System.

     

    “Reportable
      Event”
means
      a
      reportable event as defined in Section 4043 of ERISA and the regulations
      issued under such section, with respect to a Plan, excluding, however, such
      events as to which the PBGC has by regulation waived the requirement of
      Section 4043(a) of ERISA that it be notified within 30 days of the
      occurrence of such event, provided,
      however, that
      a
      failure to meet the minimum funding standard of Section 412 of the Code and
      of Section 302 of ERISA shall be a Reportable Event regardless of the
      issuance of any such waiver of the notice requirement in accordance with either
      Section 4043(a) of ERISA or Section 412(d) of the Code.

     

    “Reports”
—
see
      Section 9.6.

     

    “Required
      Lenders”
means
      Lenders in the aggregate having more than 50% of the Aggregate Commitment or,
      if
      the Aggregate Commitment has been terminated, Lenders in the aggregate holding
      more than 50% of the aggregate unpaid principal amount of the outstanding
      Advances and participations in outstanding Letters of Credit.

     

    “Revolving
      Credit Notes”
means
      the Revolving Credit Notes, each substantially in the form of Exhibit
      A
      hereto,
      duly executed by Borrower to the respective Lenders to evidence the Revolving
      Loans, including any and all renewals, extensions, replacements and
      modifications thereof.

     

    “Revolving
      Loan”
-
      see
Section
      2.1.1.

     

    “Revolving
      Loan Advance”
means
      an Advance under the Commitments (other than an Advance under the
      Swingline).

     

    “S&P”
means
      Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
      Inc.

     

    “Schedule”
refers
      to a specific schedule to this Agreement, unless another document is
      specifically referenced.

     

    “Section”
means
      a
      numbered section of this Agreement, unless another document is specifically
      referenced.

     

    “Single
      Employer Plan”
means
      a
      Plan maintained by Borrower or any member of the Controlled Group for employees
      of Borrower or any member of the Controlled Group.

     

    “Subsidiary”
of
      a
      Person means (i) any corporation more than 50% of the outstanding securities
      having ordinary voting power of which shall at the time be owned or controlled,
      directly or indirectly, by such Person or by one or more of its Subsidiaries
      or
      by such Person and one or more of its Subsidiaries or (ii) any partnership,
      limited liability company, association, joint venture or similar business
      organization more than 50% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled. Unless otherwise
      expressly provided, all references herein to a “Subsidiary” shall mean a
      Subsidiary of Borrower.

     

    “Subsidiary
      Existing Indebtedness”
-
      see
Section
      6.11(vi).

     

    “Substantial
      Portion”
means,
      with respect to the Property of Borrower and its Subsidiaries, Property which
      (i) represents more than 10% of the consolidated assets of Borrower and its
      Subsidiaries as would be shown in the consolidated financial statements of
      Borrower and its Subsidiaries as at the beginning of the twelve-month period
      ending with the month in which such determination is made or (ii) is responsible
      for more than 10% of the consolidated net sales or of the consolidated net
      income of Borrower and its Subsidiaries as reflected in the financial statements
      referred to in clause
      (i)
      above.

     

    “Swingline”
means
      the unsecured cash management line of credit in the maximum principal amount
      of
      $40,000,000 provided by LaSalle to Borrower, governed by this Agreement,
      including any renewal or extension thereof.

     

    “Synthetic
      Lease Obligation”
means
      the monetary obligation of a Person under (i) a so-called synthetic or
      off-balance sheet or tax retention lease or (ii) an agreement for the use or
      possession of property creating obligations that do not appear on the balance
      sheet of such Person but which, upon the insolvency or bankruptcy of such
      Person, would be characterized as indebtedness of such Person (without regard
      to
      accounting treatment). The amount of Synthetic Lease Obligations of any Person
      under any such lease or agreement shall be the amount which would be shown
      as a
      liability on a balance sheet of such Person prepared in accordance with
      Agreement Accounting Principles if such lease or agreement were accounted for
      as
      a Capitalized Lease.

     

    “Taxes”
means
      any and all present or future taxes, duties, levies, imposts, deductions,
      charges or withholdings, and any and all liabilities with respect to the
      foregoing, but excluding
      Excluded
      Taxes.

     

    “Transferee”
—
see
      Section 12.4.

     

    “Type”
means,
      with respect to any Revolving Loan Advance, its nature as a Floating Rate
      Advance or a Eurodollar Advance.

     

    “Unfunded
      Liabilities”
means
      the amount (if any) by which the present value of all vested and unvested
      accrued benefits under all Single Employer Plans exceeds the fair market value
      of all such Plan assets allocable to such benefits, all determined as of the
      then most recent valuation date for such Plans using PBGC actuarial assumptions
      for single employer plan terminations.

     

    “Unmatured
      Default”
means
      an event which but for the lapse of time or the giving of notice, or both,
      would
      constitute a Default.

     

    “Wholly-Owned
      Subsidiary”
of
      a
      Person means (i) any Subsidiary all of the outstanding voting securities of
      which shall at the time be owned or controlled, directly or indirectly, by
      such
      Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
      Person and one or more Wholly-Owned Subsidiaries of such Person, or (ii) any
      partnership, limited liability company, association, joint venture or similar
      business organization 100% of the ownership interests having ordinary voting
      power of which shall at the time be so owned or controlled.

     

    “Withholding
      Certificate”
—
see
      Section 3.5(iv).

     

    The
      foregoing definitions shall be equally applicable to both the singular and
      plural forms of the defined terms.

     

    ARTICLE
      II  

     

    

     

    THE
      CREDITS

     

    2.1.  Commitments.

     

    2.1.1.  Revolving
      Loans.
      Subject
      to the terms and conditions of this Agreement and prior to the Commitment
      Termination Date, each Lender severally agrees, on the terms and conditions
      set
      forth in this Agreement, to make loans (“Revolving
      Loans”)
      to
      Borrower and participate in Letters of Credit issued upon the request of
      Borrower from time to time in amounts not to exceed in the aggregate at any
      one
      time outstanding the amount of its Commitment. No requested Revolving Loan
      Advance shall cause the aggregate outstanding principal balance of the Revolving
      Loan Advances plus the aggregate outstanding principal balance of the Swingline
      Advances plus the outstanding LC Obligations to exceed the Aggregate Commitment.
      Subject to the terms of this Agreement, Borrower may borrow, repay and reborrow
      such available amount under the Commitments at any time prior to the Commitment
      Termination Date. The Commitments to lend hereunder shall expire on the
      Commitment Termination Date. The Revolving Loans made by the Lenders pursuant
      hereto shall be evidenced by the Revolving Credit Notes.

     

    2.1.2.  Swingline
      Loans.
      Subject
      to the terms and conditions of this Agreement and prior to the Commitment
      Termination Date, LaSalle shall make advances under the Swingline available
      to
      Borrower in a maximum principal amount equal to the lesser of (a) the unborrowed
      portion of the Aggregate Commitment, or (b) $40,000,000. No requested Advance
      shall cause the aggregate outstanding principal balance of the Swingline
      Advances to exceed $40,000,000 and no requested Advance shall cause the
      aggregate outstanding principal balance of the Swingline Advances plus
      the
      aggregate outstanding principal balance of the Revolving Loan Advances
plus
      the LC
      Obligations to exceed the Aggregate Commitment. Subject to the terms of this
      Agreement, Borrower may borrow, prepay and reborrow such available amount under
      the Swingline at any time prior to the Commitment Termination Date. LaSalle’s
      commitment to make Swingline Advances hereunder shall expire on the Commitment
      Termination Date. Advances under the Swingline shall be evidenced by the Credit
      Note.

     

    2.2.  Required
      Payments; Termination.
      Any
      outstanding Advances and all other unpaid Obligations shall be paid in full
      by
      Borrower on the Commitment Termination Date.

     

    2.3.  Ratable
      Loans.
      With
      respect to the Commitments, each Advance thereunder (other than any Advance
      under the Swingline) shall consist of Revolving Loans made from the several
      Lenders in accordance with their respective Pro Rata Shares. On any Business
      Day, LaSalle may, in its sole discretion, give notice to the Lenders that the
      outstanding principal balance of the Swingline shall be funded with a Revolving
      Loan Advance (provided that such notice shall be deemed to have been
      automatically given upon the occurrence of a Default under Section 7.6
      or
7.7),
      in
      which case a Revolving Loan Advance under the Commitments constituting a
      Floating Rate Advance (each such Advance being referred to herein as a
“Mandatory
      Funding”)
      shall
      be made on the immediately succeeding Business Day by all Lenders according
      to
      each Lender’s Pro Rata Share of the Commitments, and the proceeds thereof shall
      be applied directly to LaSalle to repay such outstanding Swingline Advances.
      Each Lender hereby irrevocably agrees to make such Revolving Loans, pursuant
      to
      each Mandatory Funding in the amount and in the manner specified in the
      preceding sentence and on the date specified to it by LaSalle notwithstanding:
      (a) that the amount of the Mandatory Funding may not comply with the minimum
      amount for a borrowing specified in Section 2.6;
      (b)
      whether any conditions specified in Article
      IV
      are then
      satisfied; (c) the date of such Mandatory Funding; and (d) any reduction in
      the
      Aggregate Commitment after any such Advances under the Swingline were made.
      In
      the event that any Mandatory Funding cannot for any reason be made on the date
      otherwise required above (including, without limitation, as a result of the
      commencement of a proceeding under the Bankruptcy Code in respect of Borrower),
      each Lender hereby agrees that it shall forthwith purchase from LaSalle (without
      recourse or warranty) such assignment of the outstanding Advances under the
      Swingline as shall be necessary to cause such Lenders to share in such Advances
      ratably based upon their respective Commitments, provided
      that all
      interest payable on such Advances shall be for the account of LaSalle until
      the
      date the respective assignment is purchased and, to the extent attributable
      to
      the purchased assignment, shall be payable to the Lender purchasing same from
      and after such date of purchase.

     

    2.4.  Types
      of Advances.

     

    2.4.1.  Revolving
      Advances.
      The
      Revolving Loan Advances may be Floating Rate Advances or Eurodollar Advances,
      or
      a combination thereof, selected by Borrower in accordance with Sections
      2.8.1
      and
2.9.

     

    2.4.2.  Swingline
      Advances.
      The
      Advances under the Swingline may be Floating Rate Advances or Negotiated Rate
      Advances, or a combination thereof, selected by Borrower in accordance with
      Section 2.8.2.

     

    2.5.  Facility
      Fee; Reductions in Aggregate Commitment.

     

    2.5.1.  Borrower
      agrees to pay to the Administrative Agent for the account of each Lender
      according to its Pro Rata Share a facility fee at a per annum rate equal to
      the
      Applicable Fee Rate from and after the date hereof to and including the
      Commitment Termination Date on such Lender’s Commitment (regardless of usage) in
      effect from time to time. Such facility fees shall be payable in arrears on
      the
      last Business Day of each quarter and on the Commitment Termination
      Date.

     

    2.5.2.  Borrower
      may permanently reduce the Aggregate Commitment in whole, or in part ratably
      among the Lenders in integral multiples of $5,000,000, upon at least three
      Business Days’ prior written notice to the Administrative Agent, which notice
      shall specify the amount of any such reduction, provided,
      however, that
      the
      amount of the Aggregate Commitment may not be reduced below the Aggregate
      Outstanding Credit Exposure. All accrued facility fees shall be payable on
      the
      effective date of any termination of the obligations of the Lenders to make
      Credit Extensions hereunder.

     

    2.6.  Minimum
      Amount of Each Advance.

     

    2.6.1.  Revolving
      Advances.
      Except
      for a Mandatory Funding, each Eurodollar Advance shall be in the minimum amount
      of $5,000,000 and in integral multiples of $1,000,000 (if in excess thereof),
      and each Floating Rate Advance (other than an Advance under the Swingline)
      may
      be in the amount of $1,000,000 or an integral multiple thereof. Borrower shall
      not request a Eurodollar Advance if, after giving effect thereto, more than
      twelve separate Eurodollar Advances would be outstanding.

     

    2.6.2.  Swingline.
      Each
      Swingline Advance shall be in the minimum amount of $100,000 and in integral
      multiples of $100,000 (if in excess thereof).

     

    2.7.  Optional
      Principal Payments.

     

    2.7.1.  Revolving
      Advances.
      Borrower may from time to time pay, without penalty or premium, all outstanding
      Floating Rate Advances (other than an Advance under the Swingline), or, in
      a
      minimum aggregate amount of $1,000,000 or any integral multiple of $1,000,000
      in
      excess thereof, any portion of the outstanding Floating Rate Advances (other
      than an Advance under the Swingline) upon one Business Day’s prior notice to the
      Administrative Agent. Borrower may from time to time pay, subject to the payment
      of any funding indemnification amounts required by Section 3.4
      but
      without penalty or premium, all outstanding Eurodollar Advances, or, in a
      minimum aggregate amount of $5,000,000 or any integral multiple of $1,000,000
      in
      excess thereof, any portion of the outstanding Eurodollar Advances upon three
      Business Days’ prior notice to the Administrative Agent. Each prepayment
      pursuant to this Section shall be made together with accrued and unpaid interest
      to the date of such prepayment on the principal amount paid.

     

    2.7.2.  Swingline.
      Borrower may from time to time pay, without penalty or premium, all outstanding
      Floating Rate Advances under the Swingline, or, in the minimum amount of
      $100,000 or any integral multiple of $100,000 in excess thereof, any portion
      of
      the outstanding Floating Rate Advances under the Swingline with notice to the
      Administrative Agent and LaSalle by 10:00 a.m. (Chicago time) on the date of
      repayment. A Negotiated Rate Advance may not be prepaid prior to the last day
      of
      the applicable Negotiated Rate Interest Period except for a prepayment funded
      by
      a Mandatory Funding. Each prepayment pursuant to this Section shall be made
      together with accrued and unpaid interest to the date of such prepayment on
      the
      principal amount paid.

     

    2.8.  Method
      of Selecting Types and Interest Periods for New Advances.

     

    2.8.1.  Revolving
      Advances.
      Borrower shall select the Type of Advance and, in the case of each Eurodollar
      Advance, the Interest Period applicable thereto from time to time. Borrower
      shall give the Administrative Agent irrevocable notice (a “Borrowing
      Notice”)
      not
      later than 10:00 a.m. (Chicago time) on the proposed Borrowing Date of each
      Floating Rate Advance and three Business Days before the Borrowing Date for
      each
      Eurodollar Advance, specifying:

     

    
      	(i)  	
              the
                Borrowing Date, which shall be a Business Day, of such
                Advance,

            

    

     

    
      	(ii)  	
              the
                aggregate amount of such Advance,

            

    

     

    
      	(iii)  	
              the
                Type of Advance selected, and

            

    

     

    
      	(iv)  	
              in
                the case of each Eurodollar Advance, the Interest Period applicable
                thereto.

            

    

     

    Any
      notice received later than 10:00 a.m. (Chicago time) on any day shall be deemed
      to be received on the following Business Day. The Administrative Agent shall
      notify the Lenders of Borrower’s intent to borrow by 12:00 p.m. (Chicago time)
      on the date it receives a timely Borrowing Notice from Borrower. Not later
      than
      2:00 p.m. (Chicago time) on each Borrowing Date, each Lender shall make
      available its Loan or Loans in immediately available funds to the Administrative
      Agent at its address specified pursuant to Article
      XIV.
      The
      Administrative Agent will make the funds so received from the Lenders available
      to Borrower at the Administrative Agent’s aforesaid address.

     

    2.8.2.  Swingline.
      As
      Borrower desires to obtain Advances under the Swingline hereunder, Borrower
      shall give the Administrative Agent and LaSalle a Borrowing Notice by not later
      than 12:00 p.m. (Chicago time), on the Borrowing Date, specifying: (a) the
      Borrowing Date, which shall be a Business Day, of such Advance, and (b) the
      aggregate amount of such Advance. Each Advance under the Swingline shall bear
      interest at the Floating Rate, unless Borrower and LaSalle agree to a Negotiated
      Rate for a Negotiated Rate Interest Period. Subject to the borrowing limitations
      set forth in Section 2.1.2,
      by 2:00
      p.m. (Chicago time) on each such Borrowing Date, LaSalle agrees to make its
      Advance under the Swingline to Borrower by deposit to the account of Borrower
      with LaSalle.

     

    2.9.  Conversion
      and Continuation of Outstanding Advances.
      Floating Rate Advances (other than an Advance under the Swingline) shall
      continue as Floating Rate Advances unless and until such Floating Rate Advances
      are converted into Eurodollar Advances pursuant to this Section 2.9
      or are
      repaid in accordance with Section 2.7.
      Each
      Eurodollar Advance shall continue as a Eurodollar Advance until the end of
      the
      then applicable Interest Period therefor, at which time such Eurodollar Advance
      shall be automatically converted into a Floating Rate Advance unless (x) such
      Eurodollar Advance is or was repaid in accordance with Section
      2.7
      or (y)
      Borrower shall have given the Administrative Agent a Conversion/Continuation
      Notice (as defined below) requesting that, at the end of such Interest Period,
      such Eurodollar Advance continue as a Eurodollar Advance for the same or another
      Interest Period. Subject to the terms of Section 2.6,
      Borrower may elect from time to time to convert all or any part of a Floating
      Rate Advance (other than an Advance under the Swingline) into a Eurodollar
      Advance. Borrower shall give the Administrative Agent irrevocable notice (a
      “Conversion/Continuation
      Notice”)
      of
      each conversion of a Floating Rate Advance (other than an Advance under the
      Swingline) into a Eurodollar Advance or continuation of a Eurodollar Advance
      not
      later than 10:00 a.m. (Chicago time) at least three Business Days prior to
      the date of the requested conversion or continuation, specifying:

     

    
      	(i)  	
              the
                requested date, which shall be a Business Day, of such conversion
                or
                continuation,

            

    

     

    
      	(ii)  	
              the
                aggregate amount and Type of the Advance which is to be converted
                or
                continued, and

            

    

     

    
      	(iii)  	
              the
                amount of such Advance which is to be converted into or continued
                as a
                Eurodollar Advance and the duration of the Interest Period applicable
                thereto.

            

    

     

    2.10.  Changes
      in Interest Rate, etc.
      Each
      Floating Rate Advance shall bear interest on the outstanding principal amount
      thereof, for each day from and including the date such Advance is made or is
      automatically converted from a Eurodollar Advance into a Floating Rate Advance
      pursuant to Section
      2.9,
      to but
      excluding the date it is paid or is converted into a Eurodollar Advance pursuant
      to Section
      2.9,
      at a
      rate per annum equal to the Floating Rate for such day. Changes in the rate
      of
      interest on that portion of any Advance maintained as a Floating Rate Advance
      will take effect simultaneously with each change in the Alternate Base Rate.
      Each Eurodollar Advance shall bear interest on the outstanding principal amount
      thereof from and including the first day of each Interest Period applicable
      thereto to (but not including) the last day of such Interest Period at the
      interest rate determined by the Administrative Agent as applicable to such
      Eurodollar Advance based upon Borrower’s selections under Sections
      2.8
      and
2.9
      and
      otherwise in accordance with the terms hereof. No Interest Period may end after
      the Commitment Termination Date.

     

    2.11.  Rates
      Applicable After Default.
      Notwithstanding anything to the contrary contained in Section
      2.8
      or
2.9,
      during
      the continuance of a Default or Unmatured Default the Required Lenders may,
      at
      their option, by notice to Borrower (which notice may be revoked at the option
      of the Required Lenders notwithstanding any provision of Section
      8.5
      requiring unanimous consent of the Lenders to changes in interest rates),
      declare that no Advance may be made as, converted into or continued as a
      Eurodollar Advance. During the continuance of a Default the Required Lenders
      may, at their option, by notice to Borrower (which notice may be revoked at
      the
      option of the Required Lenders notwithstanding any provision of Section
      8.5
      requiring unanimous consent of the Lenders to changes in interest rates),
      declare that (i) each Eurodollar Advance shall bear interest for the remainder
      of the applicable Interest Period at the rate otherwise applicable to such
      Interest Period plus 2% per annum and (ii) each Floating Rate Advance (other
      than an Advance under the Swingline) shall bear interest at a rate per annum
      equal to the Floating Rate in effect from time to time plus 2% per annum and
      (iii) each of the Letter of Credit fees described in Section
      2.20.1
      shall be
      increased by 2% per annum, provided
      that,
      during the continuance of a Default under Section
      7.6
      or
7.7,
      the
      interest rates set forth in clauses (i) and (ii) above and the increase in
      the
      Letter of Credit fees set forth in clause
      (iii)
      above
      shall be applicable to all Advances (other than an Advance under the Swingline)
      without any election or action on the part of the Administrative Agent or any
      Lender. If any Advance under the Swingline is not paid at maturity, whether
      by
      acceleration or otherwise, or during the continuance of a Default, LaSalle
      may,
      at its option, by written notice to Borrower and the Administrative Agent (which
      notice may be revoked at LaSalle’s option notwithstanding any provision of
Section
      8.5
      requiring unanimous consent of the Lenders to changes in interest rates),
      declare that each Swingline Advance shall bear interest at a rate per annum
      equal to the otherwise applicable rate plus 2% per annum; provided
      that
      during the continuance of a Default under Section
      7.6
      or
7.7,
      the
      interest rate for all Swingline Advances shall be the rate per annum equal
      to
      the otherwise applicable rate plus 2% per annum without any election or action
      on the part of LaSalle.

     

    2.12.  Method
      of Payment.
      All
      payments of the Obligations hereunder shall be made, without setoff, deduction,
      or counterclaim, and without relief from valuation and appraisement laws, in
      immediately available funds to the Administrative Agent at the Administrative
      Agent’s address specified pursuant to Article
      XIV,
      or at
      any other Lending Installation of the Administrative Agent specified in writing
      by the Administrative Agent to Borrower, by noon (Chicago time) on the date
      when
      due and shall (except in the case of (a) repayments of Swingline Advances and
      (b) reimbursement obligations in respect of Letters of Credit for which the
      LC
      Issuer has not been fully indemnified by the Lenders, or as otherwise
      specifically required hereunder) be applied ratably by the Administrative Agent
      among the Lenders. Each payment delivered to the Administrative Agent for the
      account of any Lender shall be delivered promptly by the Administrative Agent
      to
      such Lender in the same type of funds that the Administrative Agent received
      at
      its address specified pursuant to Article
      XIV
      or at
      any Lending Installation specified in a notice received by the Administrative
      Agent from such Lender. The Administrative Agent is hereby authorized to charge
      the account of Borrower maintained with LaSalle for each payment of principal,
      interest and fees as it becomes due hereunder.

     

    2.13.  Notes;
      Telephonic Notices.
      Each
      Lender is hereby authorized to record the principal amount of each of its Loans
      and each repayment on any schedule attached to its Note, provided,
      however, that neither the failure to so record nor any error in such recordation
      shall affect Borrower’s obligations under such Note. Borrower hereby authorizes
      the Lenders and the Administrative Agent to extend, convert or continue
      Advances, effect selections of Types of Advances and to transfer funds based
      on
      telephonic notices made by an Authorized Officer. The Administrative Agent
      and
      any Lender may rely, without further inquiry, on all such requests which shall
      have been received by it in good faith by anyone reasonably believed to be
      an
      Authorized Officer. Borrower agrees to deliver promptly to the Administrative
      Agent a written confirmation, if such confirmation is requested by the
      Administrative Agent or any Lender, of each telephonic notice signed by an
      Authorized Officer. If the written confirmation differs in any material respect
      from the action taken by the Administrative Agent and the Lenders, the records
      of the Administrative Agent and the Lenders shall govern absent manifest
      error.

     

    2.14.  Interest
      Payment Dates; Interest and Fee Basis.
      Interest accrued on each Floating Rate Advance constituting a Revolving Loan
      Advance shall be payable on each Payment Date, commencing with the first such
      date to occur after the date hereof, on any date on which such Advance is
      prepaid, whether due to acceleration or otherwise, and at maturity. Interest
      accrued on each Eurodollar Advance shall be payable on the last day of its
      applicable Interest Period, or any date on which the Eurodollar Advance is
      prepaid, whether by acceleration or otherwise, and on the Commitment Termination
      Date. Interest accrued on each Eurodollar Advance having an Interest Period
      longer than three months shall also be payable on the last day of each three
      month interval during such Interest Period. Interest and facility fees shall
      be
      calculated for actual days elapsed on the basis of a 360-day year. Interest
      accrued on each Swingline Advance shall be payable on the last day of each
      calendar month, commencing with the first such date to occur after the date
      hereof, on any date on which the Swingline Advance is prepaid, whether by
      acceleration or otherwise, and on the Commitment Termination Date. Interest
      shall be payable for the day an Advance is made but not for the day of any
      payment on the amount paid if payment is received prior to noon (local time)
      at
      the place of payment. If any payment of principal of or interest on an Advance
      shall become due on a day which is not a Business Day, then (subject to the
      second proviso
      of the
      definition of “Interest Period”) such payment shall be made on the next
      succeeding Business Day and, in the case of a principal payment, such extension
      of time shall be included in computing interest in connection with such
      payment.

     

    2.15.  Notification
      of Advances, Interest Rates, Prepayments and Commitment
      Reductions.
      Promptly after receipt thereof, the Administrative Agent will notify each Lender
      of the contents of each Aggregate Commitment reduction notice, Borrowing Notice,
      Conversion/Continuation Notice, and repayment notice received by it hereunder.
      The Administrative Agent will notify each Lender of the interest rate applicable
      to each Eurodollar Advance promptly upon determination of such interest rate
      and
      will give each Lender prompt notice of each change in the Alternate Base Rate.
      Each determination by the Administrative Agent of the applicable interest rate
      shall be binding and conclusive absent manifest error.

     

    2.16.  Lending
      Installations.
      Each
      Lender may book its Loans and its participation in any LC Obligations and the
      LC
      Issuer may book the Letters of Credit at any Lending Installation selected
      by
      such Lender or the LC Issuer, as the case may be, and may change its Lending
      Installation from time to time. All terms of this Agreement shall apply to
      any
      such Lending Installation and the Loans, Letters of Credit, participations
      in LC
      Obligations and any Notes issued hereunder shall be deemed held by each Lender
      or the LC Issuer, as the case may be, for the benefit of such Lending
      Installation. Each Lender and the LC Issuer may, by written notice to the
      Administrative Agent and Borrower in accordance with Article
      XIV,
      designate replacement or additional Lending Installations through which Loans
      will be made by it and its participation in any LC Obligations and the LC Issuer
      may book the Letters of Credit or Letters of Credit will be issued by it and
      for
      whose account Loan payments or payments with respect to Letters of Credit are
      to
      be made.

     

    2.17.  Non-Receipt
      of Funds by the Administrative Agent.
      Unless
      Borrower or a Lender, as the case may be, notifies the Administrative Agent
      prior to the date on which it is scheduled to make payment to the Administrative
      Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the
      case
      of Borrower, a payment of principal, interest or fees to the Administrative
      Agent for the account of the Lenders, that it does not intend to make such
      payment, the Administrative Agent may assume that such payment has been made.
      The Administrative Agent may, but shall not be obligated to, make the amount
      of
      such payment available to the intended recipient in reliance upon such
      assumption. If such Lender or Borrower, as the case may be, has not in fact
      made
      such payment to the Administrative Agent, the recipient of such payment shall,
      on demand by the Administrative Agent, repay to the Administrative Agent the
      amount so made available together with interest thereon in respect of each
      day
      during the period commencing on the date such amount was so made available
      by
      the Administrative Agent until the date the Administrative Agent recovers such
      amount at a rate per annum equal to (x) in the case of payment by a Lender,
      the
      Federal Funds Effective Rate for such day or (y) in the case of payment by
      Borrower, the interest rate applicable to the relevant Loan.

     

    2.18.  Issuance
      of Letters of Credit.
      Subject
      to the terms and conditions hereof, the LC Issuer agrees, upon proper submission
      of a Letter of Credit Application by Borrower, to issue on behalf of the Lenders
      from time to time prior to the Commitment Termination Date, Letters of Credit
      for the account of Borrower. The Letters of Credit shall have an expiration
      date
      not later than the earlier of (i) one year after the date of issuance or (ii)
      five Business Days prior to the Commitment Termination Date. The LC Obligations
      at any time outstanding shall not exceed the lesser of (a) $50,000,000, or
      (b)
      the Aggregate Commitment less outstanding Revolving Loan Advances less
      outstanding Swingline Advances. The amount of any Letter of Credit outstanding
      at any time for all purposes hereof shall be the maximum amount which could
      be
      drawn thereunder under any circumstances from and after the date of
      determination. Each Letter of Credit issued pursuant to this Agreement and
      each
      unreimbursed drawing thereunder shall count as usage of the Commitments by
      the
      amount of such Letter of Credit outstanding and each unreimbursed drawing
      thereunder unless and until such Letter of Credit expires by its terms or
      otherwise terminates or the amount of a drawing thereunder is reimbursed. Each
      such Letter of Credit shall be issued pursuant to a Letter of Credit Application
      and the Master Letter of Credit Agreement and shall conform to the general
      requirements of the LC Issuer for the issuance of such credits, as to form
      and
      substance, shall be subject to the Uniform Customs and Practices for Documentary
      Credits (1993 Revision), International Chamber of Commerce Publication No.
      500,
      or the International Standby Practices, International Chamber of Commerce
      Publication No. 590, as applicable, and shall be a letter of credit which the
      LC
      Issuer may lawfully issue. If and to the extent a drawing is at any time made
      under any Letter of Credit, the LC Issuer shall give notice on the day of such
      drawing to Borrower, the Administrative Agent and the other Lenders of such
      drawing and Borrower agrees to pay to the LC Issuer immediately and
      unconditionally upon demand for reimbursement, in lawful money of the United
      States, an amount equal to each amount which shall be so drawn, together with
      interest from the date of such drawing to and including the date such payment
      is
      reimbursed to the LC Issuer or converted to Revolving Loans as provided herein
      at a variable rate per annum equal to the Floating Rate. All such interest
      shall
      be calculated on the basis of the actual number of days elapsed and a 360-day
      year. In the event that a drawing under any Letter of Credit is not reimbursed
      by Borrower by 11:00 A.M. (Chicago time) on the first Business Day after such
      notice to Borrower, the LC Issuer shall promptly notify the Administrative
      Agent
      and the Lenders by 12:00 noon (Chicago time) that Advances under the Commitments
      are required to reimburse the LC Issuer. Borrower hereby irrevocably authorizes
      the Lenders to refinance, without notice to Borrower, the reimbursement
      obligation of Borrower arising out of any such drawing under any Letter of
      Credit into Revolving Loans (as long as notice to the Lenders that Advances
      under the Commitments are required to reimburse the LC Issuer for draws under
      the Letters of Credit is received prior to the Commitment Termination Date),
      evidenced by the Revolving Credit Notes and for all purposes under, on and
      subject to the terms and conditions of this Agreement, but without regard to
      the
      conditions precedent to making an Advance under the Commitments or to any
      requirement of this Agreement that each Revolving Advance be in a minimum amount
      or multiple, provided,
      however, that an Advance under the Commitments in spite of Borrower’s failure to
      satisfy any conditions precedent to making an Advance shall not constitute
      a
      waiver of any Default or Unmatured Default by the Lenders. This Agreement and
      the other Loan Documents shall supersede any terms of any Letter of Credit
      Application, the Master Letter of Credit Agreement or other documents which
      are
      inconsistent with the terms hereof or thereof. By 2:00 P.M. (Chicago time)
      on
      the date the Lenders have received notice that Advances under the Commitments
      are required to reimburse the LC Issuer for draws under the Letters of Credit,
      each Lender severally agrees to make its portion of the Revolving Loan then
      being made by making available to the Administrative Agent, by wire transfer
      to
      the Administrative Agent’s main office in Chicago, Illinois, the amount to be
      advanced by such Lender. By 2:30 P.M. (Chicago time) on such date, the
      Administrative Agent shall reimburse the LC Issuer, but only from funds received
      by the Administrative Agent, the amount paid on Letters of Credit that date,
      by
      wire transfer.

     

    2.19.  Letters
      of Credit Participation.
      For
      administrative convenience, the LC Issuer shall issue the Letters of Credit
      for
      the account of Borrower pursuant to the arrangements set forth herein, and,
      the
      outstanding portion of each Letter of Credit shall be deemed to utilize a Pro
      Rata Share of the Commitment of each Lender. Upon the issuance by the LC Issuer
      of a Letter of Credit in accordance with Section
      2.18,
      the LC
      Issuer shall be deemed, without any further action by any party hereto, to
      have
      unconditionally and irrevocably sold to each Lender, and each Lender shall
      be
      deemed, without further action by any party hereto, to have unconditionally
      and
      irrevocably purchased from the LC Issuer, a participation in such Letter of
      Credit and the related LC Obligations in proportion to its Pro Rata Share,
      which
      participation shall be funded by each Lender funding its Pro Rata Share of
      the
      Commitments upon any drawing under any Letter of Credit not immediately
      reimbursed by Borrower in accordance with Section 2.18
      by
      making such funds available to the Administrative Agent in accordance with
      Sections
      2.8.1
      and
2.18;
      and
      thereafter, each such Lender shall be entitled to, and the LC Issuer or the
      Administrative Agent, as applicable, shall remit to each such Lender, its
      respective Pro Rata Share of any amount (including any interest thereon)
      received by the LC Issuer or the Administrative Agent, as applicable, in
      reimbursement of such drawing. The LC Issuer shall furnish to such Lenders,
      each
      time any Letter of Credit either is issued or drawn under (whether in whole
      or
      in part), such information with respect to the Letters of Credit as any Lender
      may reasonably request from time to time. The obligations of the Lenders to
      fund
      their respective Pro Rata Share of a Revolving Advance for reimbursement of
      a
      draw under a Letter of Credit shall be irrevocable and not subject to
      counterclaim, set-off or other defense or any other qualification or exception
      whatsoever and shall be made in accordance with the terms and conditions of
      this
      Agreement under all circumstances, including, without limitation, any of the
      following circumstances (other than in the case of gross negligence or willful
      misconduct of the LC Issuer):

     

    (a)  Any
      lack
      of validity or enforceability of this Agreement or any of the other Loan
      Documents;

     

    (b)  The
      existence of any claim, set-off, defense or other right which Borrower may
      have
      at any time against a beneficiary named in such Letter of Credit, any transferee
      of such Letter of Credit (or any Person for whom any such transferee may be
      acting), the Administrative Agent, the LC Issuer, any Lender, or other Person,
      whether in connection with this Agreement, any Letter of Credit, the
      transactions contemplated herein or any unrelated transactions (including any
      underlying transaction between Borrower and the beneficiary named in any such
      Letter of Credit);

     

    (c)  Any
      draft, certificate or other document presented under such Letter of Credit
      proving to be forged, fraudulent, invalid or insufficient in any respect or
      any
      statement therein being untrue or inaccurate in any respect;

     

    (d)  The
      surrender or impairment of any security for the performance or observance of
      any
      of the terms of any of the Loan Documents; or

     

    (e)  The
      occurrence of any Default or Unmatured Default.

     

    2.20.  Compensation
      for Letters of Credit.

     

    2.20.1.  Letter
      of Credit Fees.
      Borrower shall pay to the Administrative Agent, for the ratable benefit of
      the
      Lenders in accordance with their Pro Rata Shares (i) Letter of Credit fees
      equal
      to the Applicable Margin for Eurodollar Advances per annum of the undrawn stated
      amount of each standby Letter of Credit, payable in arrears and (ii) Letter
      of
      Credit fees on the face amount of each commercial Letter of Credit based on
      the
      LC Issuer’s then current standard fee schedule, payable at the time of issuance.
      The Letter of Credit fees will be allocated among the Lenders in accordance
      with
      their respective Pro Rata Shares and will be remitted to the other Lenders
      by
      the Administrative Agent on the first day of each calendar quarter with respect
      to Letters of Credit issued during the preceding calendar quarter. In addition,
      the LC Issuer shall be entitled to charge Borrower and retain for its own
      account a servicing fee of one-eighth percent (1/8%) per annum of each standby
      Letter of Credit and the LC Issuer’s standard servicing fee for each commercial
      Letter of Credit and a negotiating fee of one-eighth percent (1/8%) for drafts
      of Letters of Credit presented for payment. The Applicable Margin for Eurodollar
      Advances and the other per annum fees payable under this Section
      2.20
      shall be
      calculated on the basis of the actual number of days elapsed and a 360-day
      year.
      Borrower authorizes the LC Issuer to collect such fees by deducting the amount
      thereof from the deposit account of Borrower.

     

    2.20.2.  Additional
      Letter of Credit Fees.
      In
      addition to the foregoing Letter of Credit fees, Borrower shall pay to the
      LC
      Issuer, for the LC Issuer’s own account, the LC Issuer’s reasonable and
      customary costs of issuing, servicing and negotiating draws under letters of
      credit.

     

    2.21.  Reimbursement
      of Letters of Credit.
      The
      obligation of Borrower to reimburse any drawing under any Letter of Credit
      shall
      be absolute, unconditional and irrevocable and shall be paid and performed
      strictly in accordance with the terms of this Agreement under all circumstances,
      other than in the case of gross negligence or willful misconduct of the
      Administrative Agent, the LC Issuer or a Lender, including, without limitation,
      the following:

     

    (a)  Any
      lack
      of validity or enforceability of any Letter of Credit, or any Loan
      Document;

     

    (b)  Any
      amendment or waiver of or consent to departure from the terms of any Letter
      of
      Credit, or any Loan Document;

     

    (c)  The
      existence of any claim, set-off, defense or other right which Borrower may
      have
      at any time against the beneficiary or any Letter of Credit, any transferee
      of
      any Letter of Credit, the Lenders, the LC Issuer, the Administrative Agent
      or
      any other Person, whether in connection with the Loan Documents, such Letter
      of
      Credit, or any unrelated transaction;

     

    (d)  Any
      statement, draft or other document presented under any Letter of Credit proving
      to be forged, fraudulent, invalid or insufficient in any respect or any
      statement therein being untrue or inaccurate in any respect
      whatsoever;

     

    (e)  The
      surrender or impairment of any security for the performance or observance of
      the
      terms of the Loan Documents or such Letter of Credit; or

     

    (f)  Any
      circumstance, happening or admission whatsoever, whether or not similar to
      any
      of the foregoing, including, without limitation, those matters described
      below.

     

    The
      beneficiaries of each Letter of Credit shall be deemed to be the agents of
      Borrower, and except as expressly set forth herein, Borrower assumes all risks
      for their acts, omissions, or misrepresentations. Neither the LC Issuer nor
      any
      of its Affiliates or correspondents shall be responsible for (a) the validity,
      sufficiency, truthfulness or genuineness of any document required to draw under
      the Letters of Credit even if such document should in fact prove to be in any
      or
      all respects invalid, insufficient, fraudulent or forged, (b) the failure of
      any
      draft to bear reference or adequate reference to such Letter of Credit or
      failure of any Person to note the amount of any draft on such Letter of Credit
      or to surrender or take up such Letter of Credit or (c) errors, omissions,
      interruptions, or delays in transmission or delivery of any messages or
      documents, provided,
      however, that Borrower shall have a claim against the LC Issuer, and the LC
      Issuer shall be liable to Borrower, to the extent of any compensatory, as
      opposed to consequential, damages suffered by Borrower which Borrower proves
      were caused by (i) the LC Issuer’s failure to act in good faith or to observe
      general banking usage in connection with the Letter of Credit or failure to
      examine documents presented under such Letter of Credit with care to determine
      whether they comply with the terms of such Letter of Credit (it being understood
      that the LC Issuer assumes no liability or responsibility for the genuineness,
      falsification or effect of any document which appears on such examination to
      be
      regular on its face) or (ii) the gross negligence or willful misconduct of
      the
      LC Issuer. Without limiting the generality of the foregoing, Borrower agrees
      that any action taken by the LC Issuer or any of its Affiliates or
      correspondents under or in connection with any Letter of Credit, if taken in
      good faith and without gross negligence, shall be binding upon Borrower and
      shall not put the LC Issuer or any such Affiliates or correspondents under
      any
      such resulting liability to Borrower. The LC Issuer shall not be liable for
      action or failure to take action under or in connection with any Letter of
      Credit except for any such action or failure to take action which constitutes
      gross negligence or willful misconduct. The LC Issuer shall not be liable for
      consequential damages in connection with any Letter of Credit. The LC Issuer
      is
      expressly hereby authorized to honor any request for payment which is made
      under
      or in compliance with the terms of any Letter of Credit without regard to,
      and
      without any duty on its part to inquire into, the existence of any disputes
      or
      controversies between Borrower and any beneficiary of any Letter of Credit
      or
      any other Person or into respective rights, duties or liabilities of any of
      them
      or whether any facts or occurrences represented in any of the documents
      presented under any Letter of Credit are true and correct. No Person, other
      than
      the parties hereto, shall have any rights of any nature under this Agreement
      or
      by reason hereof. In no event shall the LC Issuer’s reliance and payment against
      documents presented under a Letter of Credit appearing on its face to
      substantially comply with the terms thereof be deemed to constitute gross
      negligence or willful misconduct.

     

    2.22.  Use
      of
      Proceeds.
      The
      proceeds of Advances under the Revolving Loans shall be used for general
      corporate purposes not prohibited by this Agreement. The proceeds of Advances
      under the Swingline shall be used for general corporate purposes not prohibited
      by this Agreement.

     

    2.23.  Increases
      in Aggregate Commitment.
      So long
      as no Default or Unmatured Default exists or would result therefrom, Borrower
      may, from time to time, by means of a letter delivered to the Administrative
      Agent substantially in the form of Exhibit
      F,
      and
      acknowledged by Guarantor, request that the Aggregate Commitment be increased
      to
      up to $330,000,000 (less the amount of any previous reductions of the Aggregate
      Commitment pursuant to Section
      2.5
      above)
      by (a) increasing the Commitment of one or more Lenders that have agreed to
      such
      increase and/or (b) adding one or more commercial banks or other Persons as
      a
      party hereto (each an “Additional
      Lender”)
      with a
      Commitment in an amount agreed to by any such Additional Lender; provided
      that no
      Additional Lender shall be added as a party hereto without the written consent
      of the Administrative Agent (which shall not be unreasonably withheld). Any
      increase in the Aggregate Commitment pursuant to this Section
      2.23
      shall,
      subject to the satisfaction of the conditions precedent referred to below,
      be
      effective three Business Days after the date on which the Administrative Agent
      has received and accepted the applicable increase letter in the form of
Annex
      1
      to
Exhibit
      F
      (in the
      case of an increase in the Commitment of an existing Lender) or assumption
      letter in the form of Annex
      2
      to
Exhibit
      F
      (in the
      case of the addition of an Additional Lender). The effectiveness of each such
      increase to the Aggregate Commitment shall be subject to the conditions
      precedent that the Administrative Agent shall have received each of the
      following documents, each dated the effective date of such increase (or such
      other date as shall be reasonably acceptable to the Administrative Agent):
      (a)
      certified copies of resolutions of the board of directors of Borrower approving
      such increase to the Aggregate Commitment, in form and substance reasonably
      acceptable to the Administrative Agent, and (b) such other documents, opinions
      of counsel and certificates as the Administrative Agent may reasonably request,
      each in form and substance reasonably acceptable to the Administrative Agent.
      The Administrative Agent shall promptly notify Borrower and the Lenders of
      the
      effectiveness of any increase in the amount of the Aggregate Commitment pursuant
      to this Section
      2.23
      and of
      the Commitment of each Lender after giving effect thereto. Borrower acknowledges
      that, in order to maintain Advances in accordance with each Lender’s pro rata
      share of all outstanding Advances prior to any increase in the Aggregate
      Commitment pursuant to this Section
      2.23,
      a
      reallocation of the Commitments as a result of a non-pro-rata increase in the
      Aggregate Commitment may require prepayment of all or portions of certain
      Advances on the date of such increase (and any such prepayment shall be subject
      to the provisions of Section
      3.4).

     

    2.24.  Extension
      of Commitment Termination Date.

     

    2.24.1.  Borrower
      may request a one year extension of the then-scheduled Commitment Termination
      Date by submitting a request for an extension to the Administrative Agent (an
      “Extension
      Request”)
      no
      more than 90 days prior to any anniversary of the date of this Agreement;
provided
      that
      Borrower may make no more than two such requests. Any Extension Request shall
      specify the date (which must be at least 30 days after the Extension Request
      is
      delivered to the Administrative Agent) as of which the Lenders must respond
      to
      such Extension Request (the “Response
      Date”).
      Promptly upon receipt of an Extension Request, the Administrative Agent shall
      notify each Lender of the contents thereof. Each Lender shall, not later than
      the Response Date for any Extension Request, deliver a written response to
      the
      Administrative Agent approving or rejecting such Extension Request (and any
      Lender that fails to deliver such a response by the Response Date shall be
      deemed to have rejected such Extension Request). If Lenders that have Pro Rata
      Shares of more than 50% approve an Extension Request (which approval shall
      be at
      the sole discretion of each Lender), then the scheduled Commitment Termination
      Date for each such approving Lender shall be extended to the date that is one
      year after the previously scheduled Commitment Termination Date (but the
      scheduled Commitment Termination Date for each other Lender shall remain
      unchanged). If Lenders that have Pro Rata Shares of 50% or more reject an
      Extension Request, then the Commitment Termination Date for all Lenders shall
      remain unchanged.

     

    2.24.2.  If
      a
      Lender does not approve an Extension Request (any such Lender, a “Non-Consenting
      Lender”),
      Borrower may elect to replace such Non-Consenting
      Lender
      as
      a Lender party to this Agreement, provided
      that no
      Default or Unmatured Default shall have occurred and be continuing at the time
      of such replacement, and provided further
      that,
      concurrently with such replacement, another bank or other entity reasonably
      satisfactory to Borrower, the LC Issuer and the Administrative Agent shall
      enter
      into an assignment agreement substantially in the form of Exhibit
      E
      in
      compliance with the requirements of Section
      12.3.

     

    2.24.3.  Notwithstanding
      the foregoing, no extension of the Commitment Termination Date pursuant to
      this
Section
      2.24
      shall
      become effective as to any Lender unless (a) no Default or Unmatured Default
      shall have occurred and be continuing as of the date of such extension; and
      (b)
      the representations and warranties in Article
      V
      shall be
      true and correct as of the date of such extension (except to the extent that
      any
      such representation or warranty is expressly stated to have been made as of
      a
      specific date, in which case such representation or warranty shall be true
      and
      correct as of such specific date).

     

    ARTICLE
      III  

     

    

     

    YIELD
      PROTECTION; TAXES

     

    3.1.  Yield
      Protection.
      If, on
      or after the date of this Agreement, the adoption of any law or any governmental
      or quasi-governmental rule, regulation, policy, guideline or directive (whether
      or not having the force of law), or any change in the interpretation or
      administration thereof by any governmental or quasi-governmental authority,
      central bank or comparable agency charged with the interpretation or
      administration thereof, or compliance by any Lender or the LC Issuer or
      applicable Lending Installation with any request or directive (whether or not
      having the force of law) of any such authority, central bank or comparable
      agency:

     

    
      	(i)  	
              subjects
                any Lender or any applicable Lending Installation or the LC Issuer
                to any
                Taxes, or changes the basis of taxation of payments (other than with
                respect to Excluded Taxes) to any Lender or the LC Issuer in respect
                of
                its Eurodollar Loans, Letters of Credit or participations therein,
                or

            

    

     

    
      	(ii)  	
              imposes
                or increases or deems applicable any reserve, assessment, insurance
                charge, special deposit or similar requirement against assets of,
                deposits
                with or for the account of, or credit extended by, any Lender or
                any
                applicable Lending Installation or the LC Issuer (other than reserves
                and
                assessments taken into account in determining the interest rate applicable
                to Eurodollar Advances), or

            

    

     

    
      	(iii)  	
              imposes
                any other condition the result of which is to increase the cost to
                any
                Lender or any applicable Lending Installation or the LC Issuer of
                making,
                funding or maintaining its Eurodollar Loans, or of issuing or
                participating in Letters of Credit, or reduces any amount receivable
                by
                any Lender or any applicable Lending Installation or the LC Issuer
                in
                connection with its Eurodollar Loans, Letters of Credit or participations
                therein, or requires any Lender or any applicable Lending Installation
                or
                the LC Issuer to make any payment calculated by reference to the
                amount of
                Eurodollar Loans, Letters of Credit or participations therein held
                or
                interest or fees received by it, by an amount deemed material by
                such
                Lender, or the LC Issuer, as the case may
                be,

            

    

     

    and
      the
      result of any of the foregoing is to increase the cost to such Lender or
      applicable Lending Installation or the LC Issuer, as the case may be, of making
      or maintaining its Eurodollar Loans or Commitment, or of issuing or
      participating in Letters of Credit, or to reduce the return received by such
      Lender or applicable Lending Installation or the LC Issuer, as the case may
      be,
      in connection with such Eurodollar Loans, Commitment or Letters of Credit or
      participations therein, then, within 15 days of demand by such Lender or the
      LC
      Issuer, as the case may be, Borrower shall pay such Lender or the LC Issuer,
      as
      the case may be, such additional amount or amounts as will compensate such
      Lender or the LC Issuer, as the case may be, for such increased cost or
      reduction in amount received.

     

    3.2.  Changes
      in Capital Adequacy Regulations.
      If a
      Lender or the LC Issuer determines the amount of capital required or expected
      to
      be maintained by such Lender or the LC Issuer, any Lending Installation of
      such
      Lender or the LC Issuer or any corporation controlling such Lender or the LC
      Issuer is increased as a result of a Change, then, within 15 days of demand
      by
      such Lender or the LC Issuer, Borrower shall pay such Lender or the LC Issuer
      the amount necessary to compensate for any shortfall in the rate of return
      on
      the portion of such increased capital which such Lender or the LC Issuer
      determines is attributable to this Agreement, its Loans, Letters of Credit
      (or
      participations therein) or its Commitment to make Loans and issue or participate
      in Letters of Credit, as the case may be, hereunder (after taking into account
      such Lender’s or the LC Issuer’s policies as to capital adequacy). “Change”
means
      (i) any change after the date of this Agreement in the Risk-Based Capital
      Guidelines or (ii) any adoption of or change in any other law, governmental
      or
      quasi-governmental rule, regulation, policy, guideline, interpretation or
      directive (whether or not having the force of law) after the date of this
      Agreement which affects the amount of capital required or expected to be
      maintained by any Lender or the LC Issuer or any Lending Installation or any
      corporation controlling any Lender or the LC Issuer. “Risk-Based
      Capital Guidelines”
means
      (i) the risk-based capital guidelines in effect in the United States on the
      date
      of this Agreement, including transition rules, and (ii) the corresponding
      capital regulations promulgated by regulatory authorities outside the United
      States implementing the July 1988 report of the Basle Committee on Banking
      Regulation and Supervisory Practices entitled “International Convergence of
      Capital Measurements and Capital Standards,” including transition rules, and any
      amendments to such regulations adopted prior to the date of this
      Agreement.

     

    3.3.  Availability
      of Types of Advances.
      If (i)
      any Lender determines that maintenance of its Eurodollar Loans at a suitable
      Lending Installation would violate any applicable law, rule, regulation, or
      directive, whether or not having the force of law, or (ii) the Required Lenders
      determine that (a) deposits of a type and maturity appropriate to match fund
      Eurodollar Advances are not available or (b) the interest rate applicable to
      a
      Type of Advance does not accurately reflect the cost of making or maintaining
      such Advance, then the Administrative Agent shall suspend the availability
      of
      the affected Type of Advance and, in the case of clause (i), require any
      affected Eurodollar Advances to be repaid or converted to Floating Rate
      Advances, subject to the payment of any funding indemnification amounts required
      by Section 3.4.

     

    3.4.  Funding
      Indemnification.
      If any
      payment of a Eurodollar Advance occurs on a date which is not the last day
      of
      the applicable Interest Period, whether because of acceleration, prepayment
      or
      otherwise, or a Eurodollar Advance is not made on the date specified by Borrower
      for any reason other than default by the Lenders, Borrower will indemnify each
      Lender for any loss or cost incurred by it resulting therefrom, including,
      without limitation, any loss or cost in liquidating or employing deposits
      acquired to fund or maintain such Eurodollar Advance.

     

    3.5.  Taxes.

     

    
      	(i)  	
              All
                payments by Borrower to or for the account of any Lender, the LC
                Issuer or
                the Administrative Agent hereunder or under any Note or Letter of
                Credit
                Application shall be made free and clear of and without deduction
                for any
                and all Taxes. If Borrower shall be required by law to deduct any
                Taxes
                from or in respect of any sum payable hereunder to any Lender, the
                LC
                Issuer or the Administrative Agent, (a) the sum payable shall be
                increased
                as necessary so that after making all required deductions (including
                deductions applicable to additional sums payable under this Section 3.5)
                such Lender, the LC Issuer or the Administrative Agent (as the case
                may
                be) receives an amount equal to the sum it would have received had
                no such
                deductions been made, (b) Borrower shall make such deductions, (c)
                Borrower shall pay the full amount deducted to the relevant authority
                in
                accordance with applicable law and (d) Borrower shall furnish to
                the
                Administrative Agent the original copy of a receipt evidencing payment
                thereof within 30 days after such payment is
                made.

            

    

     

    
      	(ii)  	
              In
                addition, Borrower hereby agrees to pay any present or future stamp
                or
                documentary taxes and any other excise or property taxes, charges
                or
                similar levies which arise from any payment made hereunder or under
                any
                Note or Letter of Credit Application or from the execution or delivery
                of,
                or otherwise with respect to, this Agreement or any Note or Letter
                of
                Credit Application (“Other
                Taxes”).

            

    

     

    
      	(iii)  	
              Borrower
                hereby agrees to indemnify the Administrative Agent, the LC Issuer
                and
                each Lender for the full amount of Taxes or Other Taxes (including,
                without limitation, any Taxes or Other Taxes imposed on amounts payable
                under this Section 3.5)
                paid by the Administrative Agent, the LC Issuer or such Lender and
                any
                liability (including penalties, interest and expenses) arising therefrom
                or with respect thereto. Payments due under this indemnification
                shall be
                made within 30 days of the date the Administrative Agent, the LC
                Issuer or
                such Lender makes demand therefor pursuant to Section 3.6.

            

    

     

    
      	(iv)  	
              To
                the extent permitted by applicable law, each Lender that is not a
                United
                States person within the meaning of Code section 7701(a)(30) (a
                “Non-U.S.
                Lender”)
                shall deliver to Borrower and the Administrative Agent on or prior
                to the
                date hereof (or in the case of a Lender that is a Purchaser, on the
                date
                of such assignment to such Lender) two accurate and complete original
                signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor
                or
                other applicable form prescribed by the IRS) certifying to such Lender’s
                entitlement to a complete exemption from, or a reduced rate in, United
                States withholding tax on interest payments to be made hereunder
                or any
                Loan. If a Lender that is a Non-U.S. Lender is claiming a complete
                exemption from withholding on interest pursuant to Sections 871(h)
                or
                881(c) of the Code, the Lender shall deliver (along with two accurate
                and
                complete original signed copies of IRS Form W-8BEN) a certificate
                in form
                and substance reasonably acceptable to Agent (any such certificate,
                a
                “Withholding
                Certificate”).
                In addition, each Lender that is a Non-U.S. Lender agrees that from
                time
                to time after the date hereof, (or in the case of a Lender that is
                a
                Purchaser, after the date of the assignment to such Lender), when
                a lapse
                in time (or change in circumstances occurs) renders the prior certificates
                hereunder obsolete or inaccurate in any material respect, such Lender
                shall, to the extent permitted under applicable law, deliver to Borrower
                and the Administrative Agent two new and accurate and complete original
                signed copies of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor
                or other applicable forms prescribed by the IRS), and if applicable,
                a new
                Withholding Certificate, to confirm or establish the entitlement
                of such
                Lender or the Administrative Agent to an exemption from, or reduction
                in,
                United States withholding tax on interest payments to be made hereunder
                or
                any Loan.

            

    

     

    
      	(v)  	
              Each
                Lender that is not a Non-U.S. Lender (other than any such Lender
                which is
                taxed as a corporation for U.S. federal income tax purposes) shall
                provide
                two properly completed and duly executed copies of IRS Form W-9 (or
                any
                successor or other applicable form) to Borrower and the Administrative
                Agent certifying that such Lender is exempt from United States backup
                withholding tax. To the extent that a form provided pursuant to this
                Section
                3.5(v)
                is
                rendered obsolete or inaccurate in any material respects as result
                of
                change in circumstances with respect to the status of a Lender, such
                Lender shall, to the extent permitted by applicable law, deliver
                to
                Borrower and the Administrative Agent revised forms necessary to
                confirm
                or establish the entitlement to such Lender’s or Agent’s exemption from
                United States backup withholding
                tax.

            

    

     

    
      	(vi)  	
              For
                any period during which a Lender has failed to provide Borrower with
                an
                appropriate form pursuant to clause
                (iv)
                or
                (v),
                above (unless such failure is due to a change in treaty, law or
                regulation, or any change in the interpretation or administration
                thereof
                by any governmental authority, occurring subsequent to the date on
                which a
                form originally was required to be provided), such Lender shall not
                be
                entitled to indemnification under this Section 3.5
                with respect to Taxes imposed by the United States; provided that,
                should a Lender which is otherwise exempt from or subject to a reduced
                rate of withholding tax become subject to Taxes because of its failure
                to
                deliver a form required under clause
                (iv)
                or
                (v),
                above, Borrower shall take such steps as such Lender shall reasonably
                request to assist such Lender to recover such
                Taxes.

            

    

     

    
      	(vii)  	
              Any
                Lender that is entitled to an exemption from or reduction of withholding
                tax with respect to payments under this Agreement or any Note pursuant
                to
                the law of any relevant jurisdiction or any treaty shall deliver
                to
                Borrower (with a copy to the Administrative Agent), at the time or
                times
                prescribed by applicable law, such properly completed and executed
                documentation prescribed by applicable law as will permit such payments
                to
                be made without withholding or at a reduced
                rate.

            

    

     

    
      	(viii)  	
              Each
                Lender agrees to indemnify the Administrative Agent and hold the
                Administrative Agent harmless for the full amount of any and all
                present
                or future Taxes and related liabilities (including penalties, interest,
                additions to tax and expenses, and any Taxes imposed by any jurisdiction
                on amounts payable to the Administrative Agent under this Section
                3.5)
                which are imposed on or with respect to principal, interest or fees
                payable to such Lender hereunder and which are not paid by Borrower
                pursuant to this Section
                3.5,
                whether or not such Taxes or related liabilities were correctly or
                legally
                asserted. This indemnification shall be made within 30 days from
                the date
                the Administrative Agent makes written demand
                therefor.

            

    

     

    
      	(ix)  	
              If
                the IRS or any other governmental authority of the United States
                or any
                other country or any political subdivision thereof asserts a claim
                that
                the Administrative Agent did not properly withhold tax from amounts
                paid
                to or for the account of any Lender (because the appropriate form
                was not
                delivered or properly completed, because such Lender failed to notify
                the
                Administrative Agent of a change in circumstances which rendered
                its
                exemption from withholding ineffective, or for any other reason),
                such
                Lender shall indemnify the Administrative Agent fully for all amounts
                paid, directly or indirectly, by the Administrative Agent as tax,
                withholding therefor, or otherwise, including penalties and interest,
                and
                including taxes imposed by any jurisdiction on amounts payable to
                the
                Administrative Agent under this subsection, together with all costs
                and
                expenses related thereto (including attorneys’ fees and time charges of
                attorneys for the Administrative Agent, which attorneys may be employees
                of the Administrative Agent). The obligations of the Lenders under
                this
                Section
                3.5(ix)
                shall survive the payment of the Obligations and termination of this
                Agreement.

            

    

     

    3.6.  Lender
      Statements; Survival of Indemnity.
      To the
      extent reasonably possible and upon the request of Borrower, each Lender shall
      designate an alternate Lending Installation with respect to its Eurodollar
      Loans
      to reduce any liability of Borrower to such Lender under Sections
      3.1,
      3.2
      and
3.5
      or
      to
      avoid the unavailability of Eurodollar Advances under Section 3.3,
      so long
      as such designation is not, in the judgment of such Lender, disadvantageous
      to
      such Lender. Each Lender shall deliver a written statement of such Lender to
      Borrower (with a copy to the Administrative Agent) as to the amount due, if
      any,
      under Section 3.1,
      3.2,
      3.4
      or
3.5.
      Such
      written statement shall set forth in reasonable detail the calculations upon
      which such Lender determined such amount and shall be final, conclusive and
      binding on Borrower in the absence of manifest error. Determination of amounts
      payable under such Sections in connection with a Eurodollar Loan shall be
      calculated as though each Lender funded its Eurodollar Loan through the purchase
      of a deposit of the type and maturity corresponding to the deposit used as
      a
      reference in determining the Eurodollar Rate applicable to such Loan, whether
      in
      fact that is the case or not. Unless otherwise provided herein, the amount
      specified in the written statement of any Lender shall be payable on demand
      after receipt by Borrower of such written statement. The obligations of Borrower
      under Sections
      3.1,
      3.2,
      3.4
      and
3.5
      shall
      survive payment of the Obligations and termination of this
      Agreement.

     

    3.7.  Replacement
      of Lenders.
      If the
      Borrower is required to pay any additional amount to any Lender or any
      governmental authority for the account of any Lender pursuant to Section 3.5,
      then
      the Borrower may, at its sole expense and effort, upon notice to such Lender
      and
      the Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
Section 12.3),
      all
      its interests, rights and obligations under this Agreement 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 received the prior written consent of the Administrative
      Agent and the LC Issuer, which consents shall not unrea-sonably be withheld
      or
      delayed, (ii) such Lender shall have received payment of an amount equal to
      the
      outstanding principal of its Loans and participations in Letters of Credit,
      LC
      Obligations and Swingline Loans, accrued interest thereon, accrued fees and
      all
      other amounts payable to it hereunder, 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) and (iii) such assignment will result in a
      reduction in payments made under Section
      3.5.
      A
      Lender shall not be required to make any such assignment and 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.

     

    ARTICLE
      IV  

     

    

     

    CONDITIONS
      PRECEDENT

     

    4.1.  Initial
      Credit Extension.
      The
      Lenders and the LC Issuer shall not be required to make the initial Credit
      Extension hereunder unless Borrower has furnished to the Administrative Agent
      (with sufficient copies for the Lenders, in the case of all
      documents):

     

    
      	(i)  	
              Copies
                of the articles or certificate of incorporation of Borrower and Guarantor,
                together with all amendments, and a certificate of existence, each
                certified by the appropriate governmental officer in its jurisdiction
                of
                incorporation.

            

    

     

    
      	(ii)  	
              Copies,
                certified by the Secretary or Assistant Secretary of Borrower and
                Guarantor, of its by-laws and of its Board of Directors’ resolutions and
                of resolutions or actions of any other body authorizing the execution
                of
                the Loan Documents.

            

    

     

    
      	(iii)  	
              An
                incumbency certificate, executed by the Secretary or Assistant Secretary
                of Borrower and Guarantor, which shall identify by name and title
                and bear
                the signatures of the Authorized Officers and any other officers
                of
                Borrower and Guarantor authorized to sign the Loan Documents, upon
                which
                certificate the Administrative Agent and the Lenders shall be entitled
                to
                rely until informed of any change in writing by Borrower or
                Guarantor.

            

    

     

    
      	(iv)  	
              A
                certificate, signed by the chief financial officer or treasurer of
                Borrower, stating that on the initial Borrowing Date no Default or
                Unmatured Default has occurred and is
                continuing.

            

    

     

    
      	(v)  	
              A
                written opinion of Borrower’s and Guarantor’s counsel, addressed to the
                Administrative Agent, the Lenders and LC Issuer in the form approved
                by
                the Administrative Agent.

            

    

     

    
      	(vi)  	
              Revolving
                Credit Notes payable to the order of each of the Lenders and the
                Credit
                Note payable to the order of
                LaSalle.

            

    

     

    
      	(vii)  	
              Written
                money transfer instructions, in substantially the form of Exhibit
                D,
                addressed to the Administrative Agent and signed by an Authorized
                Officer,
                together with such other related money transfer authorizations as
                the
                Administrative Agent may have reasonably
                requested.

            

    

     

    
      	(viii)  	
              The
                insurance certificate described in Section 5.18.

            

    

     

    
      	(ix)  	
              The
                fees due and payable in accordance with the Fee
                Letters.

            

    

     

    
      	(x)  	
              Evidence
                that the Existing Credit Agreement has been terminated, and that
                all
                amounts outstanding thereunder have been paid in
                full.

            

    

     

    
      	(xi)  	
              Such
                other documents as any Lender or its counsel may have reasonably
                requested.

            

    

     

    4.2.  Each
      Credit Extension.
      The
      Lenders and the LC Issuer shall not (except as otherwise set forth in
Section
      2.3
      with
      respect to Revolving Loan Advances for the purpose of repaying Swingline
      Advances) be required to make any Credit Extension, unless on the applicable
      Borrowing Date:

     

    
      	(i)  	
              There
                exists no Default or Unmatured
                Default.

            

    

     

    
      	(ii)  	
              The
                representations and warranties contained in Article
                V
                are true and correct as of such Borrowing Date except to the extent
                any
                such representation or warranty is stated to relate solely to an
                earlier
                date, in which case such representation or warranty shall have been
                true
                and correct on and as of such earlier date; provided
                that this Section
                4.2(ii)
                shall not apply to the representations and warranties set forth in
                Section
                5.5,
                clause
                (i)
                of
                the first sentence of Section
                5.7,
                the second sentence of Section
                5.7
                and Section
                5.16.

            

    

     

    Each
      Borrowing Notice or Letter of Credit Application with respect to each such
      Credit Extension shall constitute a representation and warranty by Borrower
      that
      the conditions contained in Sections
      4.2(i)
      and
(ii)
      have
      been satisfied. Any Lender or the LC Issuer may require a duly completed
      compliance certificate in substantially the form of Exhibit
      C
      as a
      condition to making a Credit Extension.

     

    ARTICLE
      V  

     

    

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Each
      of
      Borrower and Guarantor represents and warrants to the Lenders that:

     

    5.1.  Existence
      and Standing.
      Each of
      Guarantor, Borrower and each Subsidiary of Borrower is a corporation,
      partnership (in the case of Subsidiaries only) or limited liability company
      duly
      incorporated or organized, as the case may be, validly existing and (to the
      extent such concept applies to such entity) in good standing under the laws
      of
      its jurisdiction of incorporation or organization and has all requisite
      authority to conduct its business in each jurisdiction in which its business
      is
      conducted.

     

    5.2.  Authorization
      and Validity.
      Each of
      Borrower and Guarantor has the power and authority and legal right to execute
      and deliver the Loan Documents to which it is a party and to perform its
      obligations thereunder. The execution and delivery by each of Borrower and
      Guarantor of the Loan Documents to which it is a party and the performance
      of
      its obligations thereunder have been duly authorized by proper corporate
      proceedings, and the Loan Documents to which each of Borrower and Guarantor
      is a
      party constitute legal, valid and binding obligations of Borrower and Guarantor
      enforceable against Borrower and Guarantor in accordance with their terms,
      except as enforceability may be limited by bankruptcy, insolvency or similar
      laws affecting the enforcement of creditors’ rights generally.

     

    5.3.  No
      Conflict; Government Consent.
      Neither
      the execution or delivery by Borrower and Guarantor of the Loan Documents to
      which it is a party, nor the consummation of the transactions therein
      contemplated, nor compliance with the provisions thereof will violate (i) any
      law, rule, regulation, order, writ, judgment, injunction, decree or award
      binding on Borrower, Guarantor or any of their Subsidiaries, (ii) Borrower’s,
      Guarantor’s or any of their Subsidiary’s articles or certificate of
      incorporation, partnership agreement, certificate of partnership, articles
      or
      certificate of organization, by-laws, or operating or other management
      agreement, as the case may be, or (iii) the provisions of any indenture,
      instrument or agreement to which Borrower, Guarantor or any of their
      Subsidiaries is a party or is subject, or by which it, or its Property, is
      bound, or conflict with or constitute a default thereunder, or result in, or
      require, the creation or imposition of any Lien in, of or on the Property of
      Borrower, Guarantor or a Subsidiary pursuant to the terms of any such indenture,
      instrument or agreement. No order, consent, adjudication, approval, license,
      authorization, or validation of, or filing, recording or registration with,
      or
      exemption by, or other action in respect of any governmental or public body
      or
      authority, or any subdivision thereof, which has not been obtained by Borrower,
      Guarantor or any of their Subsidiaries, is required to be obtained by Borrower,
      Guarantor or any of their Subsidiaries in connection with the execution and
      delivery of the Loan Documents, the borrowings under this Agreement, the payment
      and performance by Borrower of the Obligations or the legality, validity,
      binding effect or enforceability of any of the Loan Documents.

     

    5.4.  Financial
      Statements.
      The
      December 31, 2004 consolidated financial statements of Guarantor and its
      Subsidiaries heretofore delivered to the Lenders were prepared in accordance
      with generally accepted accounting principles in effect on the date such
      statements were prepared and fairly present the consolidated financial condition
      and operations of Guarantor and its Subsidiaries at such date and the
      consolidated results of their operations for the period then ended.

     

    5.5.  Material
      Adverse Change.
      Since
      December 31, 2004 there has been no change in the business, Property, prospects,
      condition (financial or otherwise) or results of operations of Guarantor and
      its
      Subsidiaries which could reasonably be expected to have a Material Adverse
      Effect.

     

    5.6.  Taxes.
      Guarantor and its Subsidiaries have filed all United States federal tax returns
      and all other tax returns which are required to be filed and have paid all
      taxes
      due pursuant to said returns or pursuant to any assessment received by Guarantor
      or any of its Subsidiaries, except such taxes, if any, as are being contested
      in
      good faith and as to which adequate reserves have been provided in accordance
      with Agreement Accounting Principles and as to which no Lien exists. The Federal
      income tax liabilities of Indiana Energy, Inc., and its Subsidiaries, a
      predecessor of Guarantor, and SIGCORP, Inc., and its Subsidiaries, a predecessor
      of Guarantor, have been finally determined (whether by reason of completed
      audits or the statute of limitations having run) for all fiscal years up to
      and
      including the fiscal years ended March 31, 2000 and December 31, 1999,
      respectively. No tax Liens have been filed and no claims are being asserted
      with
      respect to any such taxes. The charges, accruals and reserves on the books
      of
      Guarantor and its Subsidiaries in respect of any taxes or other governmental
      charges are adequate.

     

    5.7.  Litigation
      and Contingent Obligations.
      Except
      as set forth on Schedule
      5.7,
      there
      is no litigation, arbitration, governmental investigation, proceeding or inquiry
      pending or, to the knowledge of any of their officers, threatened against or
      affecting Guarantor or any of its Subsidiaries which (i) could reasonably be
      expected to have a Material Adverse Effect or (ii) seeks to prevent, enjoin
      or
      delay the making of any Credit Extensions. Other than any liability incident
      to
      any litigation, arbitration or proceeding which (i) could not reasonably be
      expected to have a Material Adverse Effect,
      (ii) is
      disclosed in the Form 10-K of Guarantor for the fiscal year ended December
      31,
      2004 or
      (iii)
      is permitted by Section
      6.11
      or (iv)
      is set forth on Schedule
      5.7
      or
Schedule
      5.14,
      Guarantor has no material Contingent Obligations (other than guarantees of
      obligations (other than Indebtedness) of Subsidiaries, which obligations are
      not
      prohibited by this Agreement).

     

    5.8.  Subsidiaries.
      Schedule
      5.8
      contains
      an accurate list of all Subsidiaries of Borrower as of the date of this
      Agreement, setting forth their respective jurisdictions of organization and
      the
      percentage of their respective capital stock or other ownership interests owned
      by Borrower or other Subsidiaries. All of the issued and outstanding shares
      of
      capital stock or other ownership interests of such Subsidiaries have been (to
      the extent such concepts are relevant with respect to such ownership interests)
      duly authorized and issued and are fully paid and non-assessable.

     

    5.9.  ERISA.
      Neither
      Guarantor nor any other member of the Controlled Group has incurred, or is
      reasonably expected to incur, any withdrawal liability to Multiemployer Plans
      that would reasonably be expected to have a Material Adverse Effect. Each Plan
      complies in all material respects with all applicable requirements of law and
      regulations, no Reportable Event has occurred with respect to any Plan, neither
      Guarantor nor any other member of the Controlled Group has withdrawn from any
      Plan or initiated steps to do so, and no steps have been taken to reorganize
      or
      terminate any Plan.

     

    5.10.  Accuracy
      of Information.
      No
      information, exhibit or report furnished by Guarantor or any of its Subsidiaries
      to the Administrative Agent or to any Lender in connection with the negotiation
      of, or compliance with, the Loan Documents contained any material misstatement
      of fact or omitted to state a material fact or any fact necessary to make the
      statements contained therein not misleading.

     

    5.11.  Regulation
      U.
      Margin
      stock (as defined in Regulation U) constitutes less than 25% of the value of
      those assets of Guarantor and its Subsidiaries which are subject to any
      limitation on sale, pledge, or other restriction hereunder.

     

    5.12.  Material
      Agreements.
      Neither
      Guarantor nor any Subsidiary is a party to any agreement or instrument or
      subject to any charter or other corporate restriction which could reasonably
      be
      expected to have a Material Adverse Effect. Neither Guarantor nor any Subsidiary
      thereof is in default in the performance, observance or fulfillment of any
      of
      the obligations, covenants or conditions contained in (i) any agreement to
      which
      it is a party, which default could reasonably be expected to have a Material
      Adverse Effect or (ii) any agreement or instrument evidencing or governing
      Indebtedness.

     

    5.13.  Compliance
      With Laws.
      Guarantor and its Subsidiaries have complied with all applicable statutes,
      rules, regulations, orders and restrictions of any domestic or foreign
      government or any instrumentality or agency thereof having jurisdiction over
      the
      conduct of their respective businesses or the ownership of their respective
      Property except for any failure to comply with any of the foregoing which could
      not reasonably be expected to have a Material Adverse Effect.

     

    5.14.  Ownership
      of Properties.
      Except
      as set forth on Schedule
      5.14,
      on the
      date of this Agreement, Guarantor and its Subsidiaries will have good title,
      free of all Liens other than those permitted by Section 6.15,
      to all
      of the Property and assets reflected in Guarantor’s most recent consolidated
      financial statements provided to the Administrative Agent as owned by Guarantor
      and its Subsidiaries.

     

    5.15.  Plan
      Assets; Prohibited Transactions.
      Borrower is not an entity deemed to hold “plan assets” within the meaning of 29
      C.F.R. § 2510.3-101 of an employee benefit plan (as defined in
      Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan
      (within the meaning of Section 4975 of the Code), and neither the execution
      of this Agreement nor the making of Credit Extensions hereunder gives rise
      to a
      prohibited transaction within the meaning of Section 406 of ERISA or
      Section 4975 of the Code.

     

    5.16.  Environmental
      Matters.
      In the
      ordinary course of its business, the officers of Guarantor consider the effect
      of Environmental Laws on the business of Guarantor and its Subsidiaries, in
      the
      course of which they identify and evaluate potential risks and liabilities
      accruing to Guarantor due to Environmental Laws. On the basis of this
      consideration, Guarantor has concluded that, except as set forth on Schedule
      5.16,
      Environmental Laws cannot reasonably be expected to have a Material Adverse
      Effect. Except as set forth on Schedule
      5.16,
      neither
      Guarantor nor any of its Subsidiaries has received any notice to the effect
      that
      its operations are not in material compliance with any of the requirements
      of
      applicable Environmental Laws or are the subject of any federal or state
      investigation evaluating whether any remedial action is needed to respond to
      a
      release of any toxic or hazardous waste or substance into the environment,
      which
      non-compliance or remedial action could reasonably be expected to have a
      Material Adverse Effect.

     

    5.17.  Investment
      Company Act.
      Neither
      Guarantor nor any Subsidiary is an “investment company” or a company
“controlled” by an “investment company”, within the meaning of the Investment
      Company Act of 1940, as amended.

     

    5.18.  Insurance.
      The
      certificate signed by the President, Chief Financial Officer, Secretary or
      Treasurer of Borrower, that attests to the existence and adequacy of, and
      summarizes, the property and casualty insurance program carried by Borrower
      with
      respect to itself and its Subsidiaries and that has been furnished by Borrower
      to the Administrative Agent and the Lenders, is complete and accurate. This
      summary includes the insurer’s or insurers’ name(s), policy number(s),
      expiration date(s), amount(s) of coverage, type(s) of coverage, exclusion(s),
      and deductibles. This summary also includes similar information, and describes
      any reserves, relating to any self-insurance program that is in
      effect.

     

    5.19.  Solvency.

     

    (a)  Immediately
      after the consummation of the transactions to occur on the date hereof and
      immediately following the making of each Loan, if any, made on the date hereof
      and after giving effect to the application of the proceeds of such Loans, (a)
      the fair value of the assets of Guarantor and its Subsidiaries on a consolidated
      basis, at a fair valuation, will exceed the debts and liabilities, subordinated,
      contingent or otherwise, of Guarantor and its Subsidiaries on a consolidated
      basis; (b) the present fair saleable value of the property of Guarantor and
      its
      Subsidiaries on a consolidated basis will be greater than the amount that will
      be required to pay the probable liability of Guarantor and its Subsidiaries
      on a
      consolidated basis on their debts and other liabilities, subordinated, continent
      or otherwise, as such debts and other liabilities become absolute and matured;
      (c) Guarantor and its Subsidiaries on a consolidated basis will be able to
      pay
      their debts and liabilities, subordinated, contingent or otherwise, as such
      debts and liabilities become absolute and matured; and (d) Guarantor and its
      Subsidiaries on a consolidated basis will not have unreasonably small capital
      with which to conduct the businesses in which they are engaged as such
      businesses are now conducted and are proposed to be conducted after the date
      hereof.

     

    (b)  Guarantor
      does not intend to, or to permit any of its Subsidiaries to, and does not
      believe that it or any of its Subsidiaries will, incur debts beyond its ability
      to pay such debts as they mature, taking into account the timing of and amounts
      of cash to be received by it or any such Subsidiary and the timing of the
      amounts of cash to be payable on or in respect of its Indebtedness or the
      Indebtedness of any such Subsidiary.

     

    5.20.  Public
      Utility Holding Company Act.
      Neither
      Borrower nor any Subsidiary is a “holding company” or a “subsidiary company” of
      a “holding company”, or an “affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company”, within the meaning of the Public
      Utility Holding Company Act of 1935, as amended, and the Form U-3A-2/A of
      Guarantor filed with the Securities and Exchange Commission on August 23, 2004
      was filed in good faith.

     

    5.21.  Reportable
      Transaction.
      Borrower does not intend to treat the Advances and related transactions as
      being
      a “reportable transaction” (within the meaning of Treasury Regulation Section
      1.6011-4). In the event Borrower determines to take any action inconsistent
      with
      such intention, it will promptly notify the Administrative Agent
      thereof.

     

    5.22.  Existing
      Credit Agreement.
      All
      indebtedness under the Existing Credit Agreement has been repaid in full, all
      commitments thereunder have been terminated and such agreement and other related
      loan documents have been terminated.

     

    ARTICLE
      VI  

     

    

     

    COVENANTS

     

    Until
      the
      Obligations are paid in full, and so long as any Commitment is outstanding,
      unless the Required Lenders shall otherwise consent in writing:

     

    6.1.  Financial
      Reporting.
      Guarantor will maintain, for itself and each Subsidiary, a system of accounting
      established and administered in accordance with generally accepted accounting
      principles, and Guarantor and/or Borrower will furnish to the
      Lenders:

     

    
      	(i)  	
              Within
                90 days after the close of each of its fiscal years, (a) an unqualified
                audit report certified by independent certified public accountants
                acceptable to the Lenders, prepared in accordance with Agreement
                Accounting Principles on a consolidated basis for Guarantor and its
                Subsidiaries, including balance sheets as of the end of such period,
                related statements of income and retained earnings, and a statement
                of
                cash flows, accompanied by any management letter prepared by said
                accountants and (b) unaudited financial statements for Borrower and
                its
                Subsidiaries, prepared in accordance with Agreement Accounting Principles
                on a consolidated basis for Borrower and its Subsidiaries, including
                balance sheets as of the end of such period, related profit and loss
                and
                reconciliation of surplus statements and a statement of cash
                flows.

            

    

     

    
      	(ii)  	
              Within
                45 days after the close of the first three quarterly periods of each
                of
                its fiscal years, for Guarantor and its Subsidiaries either (i) a
                consolidated unaudited balance sheet as at the close of each such
                period
                and consolidated statements of income and retained earnings and a
                statement of cash flows for the period from the beginning of such
                fiscal
                year to the end of such quarter, all certified by Guarantor’s chief
                financial officer or (ii) if Guarantor is then a “registrant” within the
                meaning of Rule 1-01 of Regulation S-X of the Securities and Exchange
                Commission and required to file a report on Form 10-Q with the Securities
                and Exchange Commission, a copy of Guarantor’s report on Form 10-Q for
                such quarterly period.

            

    

     

    
      	(iii)  	
              Together
                with the financial statements required under Sections
                6.1(i)
                and (ii),
                a
                compliance certificate in substantially the form of Exhibit
                C
                signed by its Chief Financial Officer or Treasurer showing the
                calculations necessary to determine compliance with this Agreement
                and
                stating that No Default or Unmatured Default exists, or if any Default
                or
                Unmatured Default exists, stating the nature and status
                thereof.

            

    

     

    
      	(iv)  	
              As
                soon as possible and in any event within 10 days after Borrower knows
                that
                any Reportable Event has occurred with respect to any Plan, a statement,
                signed by the chief financial officer of Borrower, describing said
                Reportable Event and the action which Borrower proposes to take with
                respect thereto.

            

    

     

    
      	(v)  	
              As
                soon as possible and in any event within 10 days after receipt by
                Borrower, a copy of (a) any notice or claim to the effect that Borrower
                or
                any of its Subsidiaries is or may be liable to any Person as a result
                of
                the release by Borrower, any of its Subsidiaries, or any other Person
                of
                any toxic or hazardous waste or substance into the environment, and
                (b)
                any notice alleging any violation of any federal, state or local
                environmental, health or safety law or regulation by Borrower or
                any of
                its Subsidiaries, which, in either case, could reasonably be expected
                to
                have a Material Adverse Effect.

            

    

     

    
      	(vi)  	
              Promptly
                upon the furnishing thereof to the shareholders of Guarantor, copies
                of
                all financial statements, reports and proxy statements so
                furnished.

            

    

     

    
      	(vii)  	
              Promptly
                upon the filing thereof, copies of all registration statements (other
                than
                registration statements on Form S-8 or any successor form thereto
                and
                other than registration statements relating to shares to be issued
                under a
                dividend reinvestment plan) and annual, quarterly, monthly or other
                regular reports which Guarantor or any of its Subsidiaries files
                with the
                Securities and Exchange Commission.

            

    

     

    
      	(viii)  	
              Such
                other information (including non-financial information) as the
                Administrative Agent or any Lender may from time to time reasonably
                request.

            

    

     

    Documents
      required to be delivered pursuant to clause
      (i),
      (ii),
      (vi)
      or
(vii)
      above
      may be delivered electronically and, if so delivered, shall be deemed to have
      been delivered on the date (i) on which Borrower posts such documents, or
      provides a link thereto, on a website on the internet at a website address
      previously specified to the Administrative Agent and the Lenders; or (ii) on
      which such documents are posted on Borrower’s behalf on IntraLinks or another
      relevant website, if any, to which each of the Administrative Agent and each
      Lender has access; provided
      that (x)
      upon request of the Administrative Agent or any Lender, Borrower shall deliver
      paper copies of such documents to the Administrative Agent or such Lender (until
      a written request to cease delivering paper copies is given by the
      Administrative Agent or such Lender) and (y) Borrower shall notify (which may
      be
      by facsimile or electronic mail) the Administrative Agent and each Lender of
      the
      posting of any documents. The Administrative Agent shall have no obligation
      to
      request the delivery of, or to maintain copies of, the documents referred to
      above or to monitor compliance by Borrower with any such request for delivery,
      and each Lender shall be solely responsible for requesting delivery to it or
      maintaining its copies of such documents.

     

    6.2.  Use
      of
      Proceeds.
      Use the
      proceeds of the Advances solely for the purposes herein described. Each of
      Borrower and Guarantor will not, nor will it permit any Subsidiary to, use
      any
      of the proceeds of the Credit Extensions to purchase or carry any “margin stock”
(as defined in Regulation U) which is subject to any limitation on sale, pledge,
      or other restriction hereunder.

     

    6.3.  Notice
      of Default.
      Each of
      Borrower and Guarantor will, and will cause each Subsidiary to, give notice
      in
      writing to the Lenders of the occurrence of any Default or Unmatured Default
      and
      of any other development, financial or otherwise, which could reasonably be
      expected to have a Material Adverse Effect, in each case promptly after any
      officer of Borrower or Guarantor obtains knowledge thereof.

     

    6.4.  Conduct
      of Business.
      Each of
      Borrower and Guarantor will, and will cause each Subsidiary to, carry on and
      conduct its business in substantially the same manner and in substantially
      the
      same or reasonably related fields of enterprise as it is presently conducted
      and
      do all things necessary to remain duly incorporated or organized, validly
      existing and (to the extent such concept applies to such entity) in good
      standing as a domestic corporation, partnership or limited liability company
      in
      its jurisdiction of incorporation or organization, as the case may be, and
      maintain all requisite authority to conduct its business in each jurisdiction
      in
      which its business is conducted.

     

    6.5.  Taxes.
      Each of
      Borrower and Guarantor will, and will cause each Subsidiary to, timely file
      complete and correct United States federal and applicable foreign, state and
      local tax returns required by law and pay when due all taxes, assessments and
      governmental charges and levies upon it or its income, profits or Property,
      except those which are being contested in good faith by appropriate proceedings
      and with respect to which adequate reserves have been set aside in accordance
      with Agreement Accounting Principles.

     

    6.6.  Insurance.
      Each of
      Borrower and Guarantor will, and will cause each Subsidiary to, maintain with
      financially sound and reputable insurance companies insurance on all their
      Property in such amounts and covering such risks as is consistent with sound
      business practice, and Borrower will furnish to any Lender upon request full
      information as to the insurance carried.

     

    6.7.  Compliance
      with Laws.

     

    (a)  Each
      of
      Borrower and Guarantor will, and will cause each Subsidiary to, comply with
      all
      laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
      awards to which it may be subject including, without limitation, all
      Environmental Laws, except where such noncompliance, singly or in the aggregate,
      could not have a Material Adverse Effect.

     

    (b)  Without
      limiting clause
      (a)
      above,
      each of Borrower and Guarantor will, and will cause each Subsidiary to, ensure
      that no person who owns a controlling interest in or otherwise controls
      Borrower, Guarantor or a Subsidiary is or shall be (i) listed on the Specially
      Designated Nationals and Blocked Person List maintained by the Office of Foreign
      Assets Control (“OFAC”),
      Department of the Treasury, and/or any other similar lists maintained by OFAC
      pursuant to any authorizing statute, Executive Order or regulation or (ii)
      a
      person designated under Section 1(b), (c) or (d) of Executive Order No. 13224
      (September 23, 2001), any related enabling legislation or any other similar
      Executive Orders.

     

    (c)  Without
      limiting clause
      (a)
      above,
      each of Borrower and Guarantor will, and will cause each Subsidiary to, comply
      with the Bank Secrecy Act (“BSA”)
      and
      all other applicable anti-money laundering laws and regulations.

     

    6.8.  Maintenance
      of Properties.
      Each of
      Borrower and Guarantor will, and will cause each Subsidiary to, do all things
      necessary to maintain, preserve, protect and keep its Property in good repair,
      working order and condition, and make all necessary and proper repairs, renewals
      and replacements so that its business carried on in connection therewith may
      be
      properly conducted at all times, except where such failure, to maintain, singly
      or in the aggregate, could not have a Material Adverse Effect.

     

    6.9.  Inspection.
      Each of
      Borrower and Guarantor will, and will cause each of their respective
      Subsidiaries to, permit the Administrative Agent and the Lenders, by their
      respective representatives and agents, to inspect any of the Property, books
      and
      financial records of Borrower, Guarantor and each Subsidiary, to examine and
      make copies of the books of accounts and other financial records of Borrower,
      Guarantor and each Subsidiary, and to discuss the affairs, finances and accounts
      of Borrower, Guarantor and each Subsidiary with, and to be advised as to the
      same by, their respective officers at such reasonable times and intervals as
      the
      Administrative Agent or any Lender may designate.

     

    6.10.  Dividends.
      Borrower will not, nor will it permit any Subsidiary to, declare or pay any
      dividends or make any distributions on its capital stock (other than dividends
      payable in its own capital stock) or redeem, repurchase or otherwise acquire
      or
      retire any of its capital stock at any time outstanding; except that any
      Subsidiary may declare and pay dividends or make distributions to Borrower
      or to
      a Wholly-Owned Subsidiary of Borrower.

     

    6.11.  Indebtedness.
      Each of
      Borrower and Guarantor will not, nor will it permit any Subsidiary (excluding
      Vectren Utility Holdings, Inc. and its Subsidiaries on the date hereof) to,
      create, incur or suffer to exist any Indebtedness, except:

     

    
      	(i)  	
              The
                Obligations.

            

    

     

    
      	(ii)  	
              Indebtedness
                existing on the date hereof and (A) disclosed in the Form 10-K of
                Guarantor for the fiscal year ended December 31, 2004 or (B) described
                on
                Schedule
                5.14
                (including, but not limited to, amounts available under commitments
                related thereto but not yet drawn upon) (the “Existing
                Indebtedness”)
                and any Indebtedness extending the maturity of, or refunding or
                refinancing, such Existing Indebtedness, provided
                that the principal amount of such Existing Indebtedness shall not
                be
                increased above the amount thereof immediately prior to such extension,
                refunding or refinancing (including, but not limited to, amounts
                available
                under commitments related thereto but not yet drawn upon), and the
                direct
                and contingent obligors therefor shall not be changed, as a result
                of or
                in connection with such extension, refunding or
                refinancing.

            

    

     

    
      	(iii)  	
              Indebtedness
                not exceeding $300,000,000 in the aggregate outstanding at any
                time.

            

    

     

    
      	(iv)  	
              Indebtedness
                of (a) Guarantor or Borrower owing to any Subsidiary of Guarantor
                or
                Subsidiary of Borrower or (b) any Subsidiary of Guarantor or Borrower
                owing to Guarantor or Borrower or any of their Subsidiaries (collectively,
                “Intercompany
                Indebtedness”).

            

    

     

    
      	(v)  	
              Indebtedness
                incurred with respect to Financial Contracts that are (A) entered
                into by
                Borrower, Guarantor or a Subsidiary of Borrower or Guarantor consistent
                with such Person’s past practices and in the ordinary course of such
                Person’s business and (B) not entered into for speculative
                purposes.

            

    

     

    
      	(vi)  	
              Indebtedness
                of a Person existing on the date the Person becomes a Subsidiary
                of
                Guarantor or Borrower, provided
                such Indebtedness was not incurred in contemplation of such Person
                becoming a Subsidiary (“Subsidiary
                Existing Indebtedness”)
                and any Indebtedness extending the maturity of, or refunding or
                refinancing, such Subsidiary Existing Indebtedness, provided
                that the principal amount of such extension, refunding or refinancing
                Indebtedness shall not be increased above the amount thereof immediately
                prior to such extension, refunding or refinancing and there shall
                not be
                any change in the direct and indirect obligors
                thereunder.

            

    

     

    
      	(vii)  	
              Indebtedness
                assumed by a new Subsidiary of Guarantor (which Indebtedness is
                non-recourse to Guarantor and its other Subsidiaries), in connection
                with
                the Acquisition of assets of a Person that had theretofore been obligated
                on such Indebtedness, provided
                such Indebtedness was not incurred by such other Person in contemplation
                of such Acquisition and any Indebtedness extending the maturity of,
                or
                refunding or refinancing, such Indebtedness, provided
                that the principal amount of such extension, refunding or refinancing
                Indebtedness shall not be increased above the amount thereof immediately
                prior to such extension, refunding or refinancing and there shall
                not be
                any change in the direct and indirect obligors
                thereunder.

            

    

     

    
      	(viii)  	
              Indebtedness
                of
                any Subsidiary of Guarantor (other than Borrower) which Indebtedness
                is
                non-recourse to Guarantor and its other
                Subsidiaries.

            

    

     

    
      	(ix)  	
              Up
                to $125,000,000 of Indebtedness of Borrower (and guaranteed by Guarantor)
                to be issued under the Note Purchase Agreement dated as of October
                11,
                2005 among Borrower, Guarantor and the purchasers named therein,
                and any
                Indebtedness extending the maturity of, or refunding or refinancing,
                such
                Indebtedness, provided
                that the principal amount of such extension, refunding or refinancing
                Indebtedness shall not be increased above the amount thereof immediately
                prior to such extension, refunding or refinancing and there shall
                not be
                any change in the direct and indirect obligors
                thereunder.

            

    

     

    6.12.  Merger.
      Each of
      Borrower and Guarantor will not, nor will it permit any Subsidiary to, merge
      or
      consolidate with or into any other Person, except (i) a Subsidiary of Guarantor
      may merge into Guarantor or a Wholly-Owned Subsidiary of Guarantor and (ii)
      provided
      that,
      both prior to and immediately after giving effect to such merger or
      consolidation, no Default or Unmatured Default exists, Borrower and Guarantor
      may enter into mergers (provided
      that (a)
      Borrower, or Guarantor, as the case may be, is the surviving corporation of
      any
      such merger or consolidation to which such Person is a party or (b) if Borrower
      or Guarantor is not the surviving entity of such merger or consolidation, (x)
      the Person into which Borrower or Guarantor, as the case may be, shall be merged
      or formed by any such consolidation (1) shall be a corporation organized and
      validly existing under the laws of the United States or any state thereof or
      the
      District of Columbia and (2) shall assume Borrower’s or Guarantor’s, as
      applicable, obligations hereunder and under the Notes in an agreement or
      instrument satisfactory in form and substance to the Administrative Agent and
      (y) the Moody’s Rating and the S&P Rating (each as defined in the Pricing
      Schedule) of the surviving corporation in effect immediately after giving effect
      to such merger or consolidation shall not be less than “Baa3” (in the case of
      the Moody’s Rating) and “BBB-” (in the case of the S&P
      Rating)).

     

    6.13.  Sale
      of Assets.
      Guarantor will not, nor will it permit any Subsidiary of Guarantor to, lease,
      sell or otherwise dispose of its Property to any other Person,
      except:

     

    
      	(i)  	
              Sales
                of inventory in the ordinary course of
                business.

            

    

     

    
      	(ii)  	
              Leases,
                sales or other dispositions of its Property that, together with all
                other
                Property of Guarantor and its Subsidiaries previously leased, sold
                or
                disposed of (other than inventory in the ordinary course of business)
                as
                permitted by this Section during the twelve-month period ending with
                the
                month in which any such lease, sale or other disposition occurs,
                do not
                constitute all or substantially all of the Property of Guarantor
                and its
                Subsidiaries.

            

    

     

    6.14.  Investments
      and Acquisitions.
      Borrower will not, nor will it permit any Subsidiary to, make or suffer to
      exist
      any Investments (including without limitation, loans and advances to, and other
      Investments in, Subsidiaries), or commitments therefor, or to create any
      Subsidiary or to become or remain a partner in any partnership or joint venture,
      or to make any Acquisition of any Person, except:

     

    
      	(i)  	
              Cash
                Equivalent Investments.

            

    

     

    
      	(ii)  	
              Investments
                in Subsidiaries and other Investments, in each case in existence
                on the
                date hereof and described in Schedule
                5.8.

            

    

     

    
      	(iii)  	
              Loans
                and advances by Borrower to Guarantor and Guarantor’s
                Subsidiaries.

            

    

     

    6.15.  Liens.
      Each of
      Borrower and Guarantor will not, nor will it permit any Subsidiary to, create,
      incur, or suffer to exist any Lien in, of or on the Property of Borrower,
      Guarantor or any of their Subsidiaries, except:

     

    
      	(i)  	
              Liens
                for taxes, assessments or governmental charges or levies on its Property
                if the same shall not at the time be delinquent or thereafter can
                be paid
                without penalty, or are being contested in good faith and by appropriate
                proceedings and for which adequate reserves in accordance with Agreement
                Accounting Principles shall have been set aside on its
                books.

            

    

     

    
      	(ii)  	
              Liens
                imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and
                other similar liens arising in the ordinary course of business which
                secure payment of obligations not more than 60 days past due, and
                such
                other carriers’ warehousemen’s and mechanics’ liens that are being
                contested in good faith and by appropriate proceedings and for which
                adequate reserves in accordance with Agreement Accounting Principles
                shall
                have been set aside on its books.

            

    

     

    
      	(iii)  	
              Liens
                arising out of pledges or deposits under worker’s compensation laws,
                unemployment insurance, old age pensions, or other social security
                or
                retirement benefits, or similar
                legislation.

            

    

     

    
      	(iv)  	
              Utility
                easements, building restrictions and such other encumbrances or charges
                against real property as are of a nature generally existing with
                respect
                to properties of a similar character and which do not in any material
                way
                affect the marketability of the same or interfere with the use thereof
                in
                the business of Guarantor or its
                Subsidiaries.

            

    

     

    
      	(v)  	
              Liens
                existing on the date hereof and described in Schedule
                5.14,
                including extensions, renewals or replacements of any such Liens
                in
                connection with the extension, renewal or replacement of any related
                Existing Indebtedness (without any increase in the amount thereof
                or any
                change in the direct and contingent obligors thereof); provided
                that in connection with the refinancing of any such Existing Indebtedness
                such Liens shall extend only to the property covered by such Liens
                immediately prior to such extension, renewal or
                replacement.

            

    

     

    
      	(vi)  	
              Liens
                securing Indebtedness of a Person existing on the date the Person
                becomes
                a Subsidiary of the Guarantor or Liens on assets securing Indebtedness
                assumed by the Guarantor or a Subsidiary of the Guarantor when such
                assets
                are acquired by the Guarantor or a Subsidiary of the Guarantor, including
                extensions, renewals or replacements of any such Liens, provided,
                however,
                that (i) such Liens were not created in contemplation of such Person
                becoming a Subsidiary or the acquisition of such assets and (ii)
                such
                Liens may not extend to any other Property owned by the Guarantor
                or any
                of its Subsidiaries.

            

    

     

    
      	(vii)  	
              Liens
                under the Mortgage Indenture on the property of Southern Indiana
                Gas and
                Electric Company that is subject to the Mortgage Indenture (without
                giving
                effect to any amendments thereto after the date hereof that would
                expand
                the description of the collateral subject to the lien
                thereof).

            

    

     

    
      	(viii)  	
              Liens
                securing Intercompany Indebtedness owing to
                Borrower.

            

    

     

    
      	(ix)  	
              Liens
                securing Indebtedness not exceeding 10% of Guarantor’s Consolidated Net
                Worth in the aggregate outstanding at any
                time.

            

    

     

    6.16.  Affiliates.
      Except
      as permitted by Section
      6.14(iii),
      Borrower will not, and will not permit any Subsidiary to, enter into any
      transaction (including, without limitation, the purchase or sale of any Property
      or service) with, or make any payment or transfer to, any Affiliate except
      in
      the ordinary course of business and pursuant to the reasonable requirements
      of
      Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no
      less favorable to Borrower or such Subsidiary than Borrower or such Subsidiary
      would obtain in a comparable arms’-length transaction; provided
      that in
      a transaction between Borrower and a Subsidiary, the transaction need only
      be
      arm’s length with respect to Borrower.

     

    6.17.  Leverage
      Ratio.
      Guarantor will not permit the ratio, determined as of the end of each of its
      fiscal quarters, of (i) Guarantor’s Consolidated Indebtedness to (ii)
      Guarantor’s Consolidated Indebtedness plus Guarantor’s Consolidated Net Worth to
      be greater than .65 to 1.0.

     

    6.18.  Certain
      Restrictions.
      Guarantor shall not permit any of its Subsidiaries to, directly or indirectly,
      create or otherwise cause or suffer to exist or become effective any encumbrance
      or restriction on the ability of any Subsidiary to (a) pay dividends or make
      other distributions on its capital stock owned by Guarantor or any Subsidiary,
      or pay any Indebtedness owed to Guarantor or any Subsidiary (other than as
      described on Schedule
      6.18
      and
      other customary limits imposed by corporate law and fraudulent conveyance
      statutes and applicable restrictions contained in section 305(a) of the Federal
      Power Act, as amended), (b) make loans or advances to Guarantor or Borrower
      or
      (c) transfer any of its assets or properties to Guarantor or Borrower, except
      for such encumbrances or restrictions existing by reason of or under (i)
      applicable law, (ii) this Agreement and the other Loan Documents, (iii)
      customary restrictions with respect to a Subsidiary pursuant to an agreement
      that has been entered into for the sale or disposition of all or substantially
      all of the capital stock of such Subsidiaries, (iv) restrictions binding on
      any
      Subsidiary on the date it becomes a Subsidiary, provided
      such
      restrictions were not created in contemplation of such Person becoming a
      Subsidiary or (v) restrictions set forth on Schedule
      6.18.

     

    ARTICLE
      VII  

     

    

     

    DEFAULTS

     

    The
      occurrence of any one or more of the following events shall constitute a
      Default:

     

    7.1. Any
      representation or warranty made or deemed made by or on behalf of Borrower,
      Guarantor or any of its Subsidiaries to the Lenders or the Administrative Agent
      under or in connection with this Agreement, any Credit Extension, any other
      Loan
      Document or any certificate or information delivered in connection with this
      Agreement or any other Loan Document shall be materially false on the date
      as of
      which made.

     

    7.2. Nonpayment
      of principal of any Loan or reimbursement obligation in respect of any Letter
      of
      Credit when due, or nonpayment of interest upon any Loan or of any facility
      fee,
      Letter of Credit fee or other obligation under any of the Loan Documents within
      five days after the same becomes due.

     

    7.3. The
      breach by Borrower or Guarantor of any of the terms or provisions of
Section
      6.2,
      6.3,
      6.10,
      6.11,
      6.12,
      6.13,
      6.14,
      6.15,
      6.16,
      6.17
      or
6.18.

     

    7.4. The
      breach by Borrower or Guarantor (other than a breach which constitutes a Default
      under another Section of this Article
      VII)
      of any
      of the terms or provisions of this Agreement which is not remedied within thirty
      days.

     

    7.5. Failure
      of Borrower or any of its Subsidiaries or Guarantor to pay when due (whether
      at
      stated maturity, on the date fixed for prepayment, by acceleration or otherwise)
      any Indebtedness aggregating in excess of $50,000,000 (“Material
      Indebtedness”);
      or
      the default by Borrower or any of its Subsidiaries or Guarantor in the
      performance (beyond the applicable grace period with respect thereto, if any)
      of
      any term, provision or condition contained in any agreement under which any
      such
      Material Indebtedness was created or is governed, or any other event shall
      occur
      or condition exist, the effect of which default or event is to cause, or to
      permit the holder or holders of such Material Indebtedness to cause, such
      Material Indebtedness to become due prior to its stated maturity; or any
      Material Indebtedness of Borrower or any of its Subsidiaries or Guarantor shall
      be declared to be due and payable or required to be prepaid or repurchased
      (other than by a regularly scheduled payment) prior to the stated maturity
      thereof; or Borrower or any of its Subsidiaries or Guarantor shall not pay,
      or
      admit in writing its inability to pay, its debts generally as they become
      due.

     

    7.6. Borrower
      or any of its Subsidiaries or Guarantor shall (i) have an order for relief
      entered with respect to it under the Federal bankruptcy laws as now or hereafter
      in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
      for, seek, consent to, or acquiesce in, the appointment of a receiver,
      custodian, trustee, examiner, liquidator or similar official for it or any
      Substantial Portion of its Property, (iv) institute any proceeding seeking
      an
      order for relief under the Federal bankruptcy laws as now or hereafter in effect
      or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
      winding up, liquidation, reorganization, arrangement, adjustment or composition
      of it or its debts under any law relating to bankruptcy, insolvency or
      reorganization or relief of debtors or fail to file an answer or other pleading
      denying the material allegations of any such proceeding filed against it, (v)
      take any corporate or other organizational action to authorize or effect any
      of
      the foregoing actions set forth in this Section 7.6
      or (vi)
      fail to contest in good faith any appointment or proceeding described in
Section 7.7.

     

    7.7. Without
      the application, approval or consent of Borrower or any of its Subsidiaries,
      or
      Guarantor, a receiver, trustee, examiner, liquidator or similar official shall
      be appointed for Borrower or any of its Subsidiaries or Guarantor or any
      Substantial Portion of its Property, or a proceeding described in Section 7.6(iv)
      shall be
      instituted against Borrower or any of its Subsidiaries or Guarantor and such
      appointment continues undischarged or such proceeding continues undismissed
      or
      unstayed for a period of 60 consecutive days.

     

    7.8. Any
      court, government or governmental agency shall condemn, seize or otherwise
      appropriate, or take custody or control of, all or any portion of the Property
      of Borrower and its Subsidiaries or Guarantor which, when taken together with
      all other Property of Borrower and its Subsidiaries or Guarantor so condemned,
      seized, appropriated, or taken custody or control of, during the twelve-month
      period ending with the month in which any such action occurs, constitutes a
      Substantial Portion.

     

    7.9. Borrower
      or any of its Subsidiaries or any Guarantor shall fail within 30 days to pay,
      bond or otherwise discharge any judgment or order for the payment of money
      in
      excess of $50,000,000, which is not stayed on appeal or otherwise being
      appropriately contested in good faith.

     

    7.10. The
      Unfunded Liabilities of all Single Employer Plans shall have a Material Adverse
      Effect or be reasonably likely to have a Material Adverse Effect or any
      Reportable Event shall occur in connection with any Plan.

     

    7.11. Borrower
      or any other member of the Controlled Group shall have been notified by the
      sponsor of a Multiemployer Plan that it has incurred withdrawal liability to
      such Multiemployer Plan in an amount which, when aggregated with all other
      amounts required to be paid to Multiemployer Plans by Borrower or any other
      member of the Controlled Group as withdrawal liability (determined as of the
      date of such notification), shall have a Material Adverse Effect or be
      reasonably likely to have a Material Adverse Effect.

     

    7.12. Borrower
      or any other member of the Controlled Group shall have been notified by the
      sponsor of a Multiemployer Plan that such Multiemployer Plan is in
      reorganization or is being terminated, within the meaning of Title IV of ERISA,
      if such reorganization or termination shall have a Material Adverse Effect
      or be
      reasonably likely to have a Material Adverse Effect.

     

    7.13. Borrower
      or any of its Subsidiaries shall (i) be the subject of any proceeding or
      investigation pertaining to the release by Borrower, any of its Subsidiaries
      or
      any other Person of any toxic or hazardous waste or substance into the
      environment, or (ii) violate any Environmental Law, which, in the case of an
      event described in clause
      (i)
      or
      clause (ii), has a Material Adverse Effect.

     

    7.14. Any
      Change in Control shall occur.

     

    7.15. The
      occurrence of any “default”, as defined in any Loan Document (other than this
      Agreement) or the breach of any of the terms or provisions of any Loan Document
      (other than this Agreement), which default or breach continues beyond any period
      of grace therein provided.

     

    7.16. The
      obligations of Guarantor under Article
      XIII
      hereof
      shall fail to remain in full force or effect or any action shall be taken to
      discontinue or to assert the invalidity or unenforceability of any of such
      obligations, or Guarantor shall deny that it has any further liability under
      such Article
      XIII,
      or
      shall give notice to such effect.

     

    ARTICLE
      VIII  

     

    

     

    ACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES

     

    8.1.  Acceleration.
      If any
      Default described in Section 7.6
      or
7.7
      occurs
      with respect to Borrower, Guarantor or any of Borrower’s Subsidiaries, the
      commitments of the Lenders to make, renew or convert Advances and to participate
      in Letters of Credit, and the obligation and power of the LC Issuer to issue
      Letters of Credit hereunder shall automatically terminate and the Obligations
      (including, without limitation, the obligation to deposit with the
      Administrative Agent a sum equal to the aggregate face amount of the outstanding
      Letters of Credit pursuant to Section 8.3
      hereof)
      shall immediately become due and payable without any election or action on
      the
      part of the Administrative Agent, the LC Issuer or any Lender. If any other
      Default occurs, then upon the declaration of the Required Lenders or the
      Administrative Agent at the direction of the Required Lenders, the obligations
      of the Lenders to make, renew or convert Advances and to participate in Letters
      of Credit, and the obligation and power of the LC Issuer to issue Letters of
      Credit under this Agreement shall terminate and the Obligations (including,
      without limitation, the obligation to deposit with the Administrative Agent
      a
      sum equal to the aggregate face amount of the outstanding Letters of Credit
      pursuant to Section 8.3
      hereof)
      shall immediately become due and payable. In either event, the Obligations
      shall
      become immediately due and payable without presentment, demand, protest or
      notice of any kind, all of which Borrower hereby expressly waives.

     

    If,
      within 30 days after acceleration of the maturity of the Obligations or
      termination of the obligations of the Lenders to make Loans and to participate
      in Letters of Credit and the obligation and power of the LC Issuer to issue
      Letters of Credit hereunder as a result of any Default (other than any Default
      as described in Section 7.6
      or
7.7
      with
      respect to Borrower, Guarantor or any of Borrower’s Subsidiaries) and before any
      judgment or decree for the payment of the Obligations due shall have been
      obtained or entered, the Required Lenders (in their sole discretion) shall
      so
      direct, the Administrative Agent shall, by notice to Borrower, rescind and
      annul
      such acceleration and/or termination.

     

    8.2.  Remedies
      Not Exclusive.
      The
      remedies of the Lenders specified in this Agreement and the other Loan Documents
      shall not be exclusive and the Lenders may avail themselves of any of the
      remedies provided by law as well as any equitable remedies available to the
      Lenders, and each and every remedy shall be cumulative and concurrent and shall
      be in addition to every other remedy now or hereafter existing at law or in
      equity.

     

    8.3.  Deposit
      to Secure Reimbursement Obligations.
      When
      any Default or Unmatured Default has occurred and is continuing, the Required
      Lenders or the Administrative Agent at the direction of the Required Lenders
      may
      demand that Borrower immediately pay to the Administrative Agent an amount
      equal
      to the aggregate outstanding amount of the Letters of Credit and Borrower shall
      immediately upon any such demand make such payment. Borrower hereby irrevocably
      grants to the Administrative Agent for the benefit of the Lenders a security
      interest in all funds deposited to the credit of or in transit to any deposit
      account or fund established pursuant to this Section 8.3
      (the
“LC
      Collateral Account”),
      including, without limitation, any investment of such fund. Borrower hereby
      acknowledges and agrees that the Administrative Agent and the LC Issuer would
      not have an adequate remedy at law for failure by Borrower to honor any demand
      made under this Section 8.3
      and that
      the Administrative Agent and the LC Issuer shall have the right to require
      Borrower specifically to perform its undertakings in this Section 8.3
      whether
      or not any draws have been made under any Letter of Credit. In the event the
      Administrative Agent or the LC Issuer makes a demand pursuant to this
Section 8.3,
      and
      Borrower makes the payment demanded, the Administrative Agent agrees to invest
      the amount of such payment for the account of Borrower and at Borrower’s risk
      and direction in short-term Investments acceptable to the Administrative Agent.
      The Administrative Agent may at any time or from time to time after funds are
      deposited in the LC Collateral Account, apply such funds to the payment of
      Obligations and any other amounts as shall from time to time have become due
      and
      payable by Borrower to the Lenders or the LC Issuer under the Loan Documents.
      At
      any time while any Default is continuing, neither Borrower nor any Person
      claiming on behalf of or through Borrower shall have a right to withdraw any
      of
      the funds held in the LC Collateral Account. After all of the Obligations have
      been indefeasibly paid in full and the Commitments have been terminated, any
      funds remaining on the LC Collateral Account shall be returned by the
      Administrative Agent to Borrower or paid to whomever may be legally entitled
      thereto at such time.

     

    8.4.  Subrogation.
      The LC
      Issuer shall, to the extent of any payments made by the LC Issuer under any
      Letter of Credit, be subrogated to all rights of the beneficiary of such Letter
      of Credit as to all obligations of Borrower and its Subsidiaries with respect
      to
      which such payment shall have been made by the LC Issuer.

     

    8.5.  Amendments.
      Subject
      to the provisions of this Article
      VIII,
      the
      Required Lenders (or the Administrative Agent with the consent in writing of
      the
      Required Lenders) and Borrower may enter into agreements supplemental hereto
      for
      the purpose of adding or modifying any provisions to the Loan Documents or
      changing in any manner the rights of the Lenders or Borrower hereunder or
      waiving any Default or failure to fulfill any condition under Article
      IV
      hereunder; provided,
      however, that no such supplemental agreement shall, without the consent of
      each
      Lender:

     

    
      	(i)  	
              Other
                than as provided in Section
                2.24,
                extend the final maturity of any Loan, or extend the expiry date
                of any
                Letter of Credit to a date after the Commitment Termination Date
                or
                postpone any regularly scheduled payment of principal of any Loan
                or
                forgive all or any portion of the principal amount thereof or any
                reimbursement obligation in respect of any Letter of Credit, or reduce
                the
                rate or extend the time of payment of interest or fees thereon or
                any
                reimbursement obligation in respect of any Letter of
                Credit.

            

    

     

    
      	(ii)  	
              Reduce
                the percentage specified in the definition of Required
                Lenders.

            

    

     

    
      	(iii)  	
              Other
                than as provided in Section
                2.24,
                extend the Commitment Termination Date, or reduce the amount or extend
                the
                payment date for, the mandatory payments required under Section 2.2,
                or increase the amount of the Commitment of any Lender hereunder
                or the
                commitment of the LC Issuer to issue Letters of Credit or permit
                Borrower
                to assign its rights under this
                Agreement.

            

    

     

    
      	(iv)  	
              Amend
                this Section 8.5.

            

    

     

    
      	(v)  	
              Amend,
                modify or waive Article
                XIII
                or
                release Guarantor from its obligations
                thereunder.

            

    

     

    
      	(vi)  	
              Waive
                compliance with the conditions set forth in Section
                4.1.

            

    

     

    No
      amendment of any provision of this Agreement relating to the Administrative
      Agent shall be effective without the written consent of the Administrative
      Agent. No amendment to any provision relating to the LC Issuer shall be
      effective without the written consent of the LC Issuer. No amendment of any
      provision of this Agreement relating to LaSalle (as the Swingline Lender) or
      any
      Swingline Advances shall be effective without the written consent of LaSalle.
      The Administrative Agent may waive payment of the fee required under
Section 12.3.2
      without
      obtaining the consent of any other party to this Agreement. Notwithstanding
      anything to the contrary herein, the Fee Letters may be amended or otherwise
      modified with the consent of the parties thereto, without requiring the consent
      of any other Lender.

     

    8.6.  Preservation
      of Rights.
      No
      delay or omission of the Administrative Agent, the LC Issuer or any Lender
      to
      exercise any power or right under the Loan Documents shall impair such power
      or
      right or be construed to be a waiver of any Default or an acquiescence therein,
      and any single or partial exercise of any power or right shall not preclude
      other or further exercise thereof or the exercise of any other power or right.
      No Credit Extension hereunder shall constitute a waiver of any of the conditions
      of any Lender’s or the LC Issuer’s obligation to make further Credit Extensions,
      nor, in the event Borrower is unable to satisfy any such condition, shall a
      waiver of such condition in any one instance have the effect of precluding
      any
      Lender or the LC Issuer from thereafter declaring such inability to be a Default
      hereunder. No course of dealing shall be binding upon the Administrative Agent,
      the LC Issuer or any Lender. No waiver, amendment or other variation of the
      terms, conditions or provisions of the Loan Documents shall be valid unless
      in
      writing and signed by the Persons required pursuant to Section
      8.5,
      and
      then only to the extent in such writing specifically set forth.

     

    ARTICLE
      IX  

     

    

     

    GENERAL
      PROVISIONS

     

    9.1.  Survival
      of Representations.
      All
      representations and warranties of Borrower and Guarantor contained in this
      Agreement shall survive the making of the Credit Extensions herein
      contemplated.

     

    9.2.  Governmental
      Regulation.
      Anything contained in this Agreement to the contrary notwithstanding, neither
      the LC Issuer nor any Lender shall be obligated to extend credit to Borrower
      in
      violation of any limitation or prohibition provided by any applicable statute
      or
      regulation.

     

    9.3.  Headings.
      Section
      headings in the Loan Documents are for convenience of reference only, and shall
      not govern the interpretation of any of the provisions of the Loan
      Documents.

     

    9.4.  Entire
      Agreement.
      The
      Loan Documents embody the entire agreement and understanding among Borrower,
      Guarantor, the Administrative Agent, the LC Issuer and the Lenders and supersede
      all prior agreements and understandings among Borrower, Guarantor, the
      Administrative Agent, the LC Issuer and the Lenders relating to the subject
      matter thereof other than the Fee Letters.

     

    9.5.  Several
      Obligations; Benefits of this Agreement.
      The
      respective obligations of the Lenders hereunder are several and not joint and
      no
      Lender shall be the partner or agent of any other (except to the extent to
      which
      the Administrative Agent is authorized to act as such). The failure of any
      Lender to perform any of its obligations hereunder shall not relieve any other
      Lender from any of its obligations hereunder. This Agreement shall not be
      construed so as to confer any right or benefit upon any Person other than the
      parties to this Agreement and their respective successors and assigns;
provided,
      however,
      that
      the parties hereto expressly agree that the Arrangers shall enjoy the benefits
      of Sections
      9.6,
      9.10
      and
10.11
      to the
      extent specifically set forth therein and each Arranger shall have the right
      to
      enforce such provisions on its own behalf and in its own name to the same extent
      as if it were a party to this Agreement.

     

    9.6.  Expenses;
      Indemnification.

     

    (a)  Borrower
      shall reimburse the Administrative Agent and the Arrangers for any costs,
      internal charges and out-of-pocket expenses (including attorneys’ fees and time
      charges of attorneys for the Administrative Agent and the Arrangers, which
      attorneys may be employees of the Administrative Agent or the Arrangers) paid
      or
      incurred by the Administrative Agent or the Arrangers in connection with the
      preparation, negotiation, execution, delivery, syndication, review, amendment,
      modification, and administration of the Loan Documents. Borrower also agrees
      to
      reimburse the Administrative Agent, the Arrangers the LC Issuer and the Lenders
      for any costs, internal charges and out-of-pocket expenses (including attorneys’
fees and time charges of attorneys for the Administrative Agent, the Arrangers,
      the LC Issuer and the Lenders, which attorneys may be employees of the
      Administrative Agent, the Arrangers, the LC Issuer or the Lenders) paid or
      incurred by the Administrative Agent, the Arrangers, the LC Issuer or any Lender
      in connection with the collection and enforcement of the Loan Documents or
      the
      preservation of its rights thereunder. Expenses being reimbursed by Borrower
      under this Section include, without limitation, costs and expenses incurred
      in connection with the Reports described in the following sentence. Borrower
      acknowledges that from time to time the Administrative Agent may prepare and
      may
      distribute to the Lenders (but shall have no obligation or duty to prepare
      or to
      distribute to the Lenders) certain audit reports (the “Reports”)
      pertaining to Borrower’s assets for internal use by the Administrative Agent
      from information furnished to it by or on behalf of Borrower, after the
      Administrative Agent has exercised its rights of inspection pursuant to this
      Agreement.

     

    (b)  Borrower
      hereby further agrees to indemnify the Administrative Agent, the Arrangers,
      the
      LC Issuer and each Lender, its directors, officers and employees against all
      losses, claims, damages, penalties, judgments, liabilities and expenses
      (including, without limitation, all expenses of litigation or preparation
      therefor whether or not the Administrative Agent, the Arrangers, the LC Issuer
      or any Lender is a party thereto) which any of them may pay or incur arising
      out
      of or relating to this Agreement, the other Loan Documents, the transactions
      contemplated hereby or the direct or indirect application or proposed
      application of the proceeds of any Credit Extension hereunder except to the
      extent that they are determined in a final non-appealable judgment by a court
      of
      competent jurisdiction to have resulted from the gross negligence or willful
      misconduct of the party seeking indemnification. The obligations of Borrower
      under this Section 9.6
      shall
      survive the payment of the Obligations and the termination of this
      Agreement.

     

    9.7.  Numbers
      of Documents.
      All
      statements, notices, closing documents, and requests hereunder shall be
      furnished to the Administrative Agent with sufficient counterparts so that
      the
      Administrative Agent may furnish one to each of the Lenders.

     

    9.8.  Accounting.
      Except
      as provided to the contrary herein, all accounting terms used herein shall
      be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with Agreement Accounting Principles.

     

    9.9.  Severability
      of Provisions.
      Any
      provision in any Loan Document that is held to be inoperative, unenforceable
      or
      invalid in any jurisdiction shall, as to that jurisdiction, be inoperative,
      unenforceable or invalid without affecting the remaining provisions in that
      jurisdiction or the operation, enforceability or validity of that provision
      in
      any other jurisdiction, and to this end the provisions of all Loan Documents
      are
      declared to be severable.

     

    9.10.  Nonliability
      of Lenders.
      The
      relationship between Borrower on the one hand and the Lenders, the LC Issuer
      and
      the Administrative Agent on the other hand shall be solely that of borrower
      and
      lender. Neither the Administrative Agent, any Arranger, the LC Issuer nor any
      Lender shall have any fiduciary responsibility to Borrower. Neither the
      Administrative Agent, any Arranger, the LC Issuer nor any Lender undertakes
      any
      responsibility to Borrower to review or inform Borrower of any matter in
      connection with any phase of Borrower’s business or operations. Borrower agrees
      that neither the Administrative Agent, any Arranger, the LC Issuer nor any
      Lender shall have liability to Borrower (whether sounding in tort, contract
      or
      otherwise) for losses suffered by Borrower in connection with, arising out
      of,
      or in any way related to, the transactions contemplated and the relationship
      established by the Loan Documents, or any act, omission or event occurring
      in
      connection therewith, unless it is determined in a final non-appealable judgment
      by a court of competent jurisdiction that such losses resulted from the gross
      negligence or willful misconduct of the party from which recovery is sought.
      Neither the Administrative Agent, any Arranger, the LC Issuer nor any Lender
      shall have any liability with respect to, and Borrower hereby waives, releases
      and agrees not to sue for, any special, indirect or consequential damages
      suffered by Borrower in connection with, arising out of, or in any way related
      to the Loan Documents or the transactions contemplated thereby.

     

    9.11.  Confidentiality.
      Each
      Lender agrees to hold any confidential information which it may receive from
      Borrower pursuant to this Agreement in confidence, except for disclosure (i)
      for
      purposes related to this Agreement and the transactions contemplated hereby
      to
      its Affiliates and to other Lenders and their respective Affiliates, (ii) for
      purposes related to this Agreement and the transactions contemplated hereby
      to
      legal counsel, accountants, and other professional advisors to that Lender
      or to
      a Transferee, (iii) to regulatory officials, (iv) to any Person as requested
      pursuant to or as required by law, regulation, or legal process, (v) to any
      Person in connection with any legal proceeding to which that Lender is a party
      (vi) to such Lender’s direct or indirect contractual counterparties in swap
      agreements or to legal counsel, accountants and other professional advisors
      to
      such counterparties, (vii) permitted by Section 12.4
      and
      (viii) to rating agencies if requested or required in connection with a rating
      relating to the Advances hereunder.

     

    9.12.  Nonreliance.
      Each
      Lender hereby represents that it is not relying on or looking to any margin
      stock (as defined in Regulation U) for the repayment of the Credit Extensions
      provided for herein.

     

    9.13.  Disclosure.
      The
      Lenders hereby (i) acknowledge and agree that LaSalle and/or its Affiliates
      from
      time to time may hold investments in, make other loans to or have other
      relationships with Borrower and its Affiliates, and (ii) waive any liability
      of
      LaSalle or such Affiliate of LaSalle to Borrower or any Lender, respectively,
      arising out of or resulting from such investments, loans or relationships other
      than liabilities arising out of the gross negligence or willful misconduct
      of
      LaSalle or its Affiliates.

     

    9.14.  Patriot
      Act Notification.
      As
      required by federal law and LaSalle’s policies and practices, LaSalle may need
      to collect certain customer identification information and documentation in
      connection with opening or maintaining accounts, or establishing or continuing
      to provide services.

     

    ARTICLE
      X  

     

    

     

    THE
      ADMINISTRATIVE AGENT

     

    10.1.  Appointment;
      Nature of Relationship.
      LaSalle
      is hereby appointed by each of the Lenders as its contractual representative
      (herein referred to as the “Administrative
      Agent”)
      hereunder and under each other Loan Document, and each of the Lenders
      irrevocably authorizes the Administrative Agent to act as the contractual
      representative of such Lender with the rights and duties expressly set forth
      herein and in the other Loan Documents. The Administrative Agent agrees to
      act
      as such contractual representative upon the express conditions contained in
      this
Article
      X.
      Notwithstanding the use of the defined term “Agent,” it is expressly understood
      and agreed that the Administrative Agent shall not have any fiduciary
      responsibility to any Lender by reason of this Agreement or any other Loan
      Document and that the Administrative Agent is merely acting as the contractual
      representative of the Lenders with only those duties as are expressly set forth
      in this Agreement and the other Loan Documents. In its capacity as the Lenders’
contractual representative, the Administrative Agent (i) does not hereby assume
      any fiduciary duty to any of the Lenders, (ii) is a “representative” of the
      Lenders within the meaning of the term “secured party” as defined in
      Section 9-102 of the Uniform Commercial Code and (iii) is acting as an
      independent contractor, the rights and duties of which are limited to those
      expressly set forth in this Agreement and the other Loan Documents. Each of
      the
      Lenders hereby agrees to assert no claim against the Administrative Agent on
      any
      agency theory or any other theory of liability for breach of fiduciary duty,
      all
      of which claims each Lender hereby waives.

     

    10.2.  Powers.
      The
      Administrative Agent shall have and may exercise such powers under the Loan
      Documents as are specifically delegated to the Administrative Agent by the
      terms
      of each thereof, together with such powers as are reasonably incidental thereto.
      The Administrative Agent shall have no implied duties to the Lenders, or any
      obligation to the Lenders to take any action thereunder except any action
      specifically provided by the Loan Documents to be taken by the Administrative
      Agent.

     

    10.3.  General
      Immunity.
      Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be liable to Borrower or any Lender for any action taken or omitted to
      be
      taken by it or them hereunder or under any other Loan Document or in connection
      herewith or therewith except to the extent such action or inaction is determined
      in a final non-appealable judgment by a court of competent jurisdiction to
      have
      arisen from the gross negligence or willful misconduct of such
      Person.

     

    10.4.  No
      Responsibility for Loans, Recitals, etc.
      Neither
      the Administrative Agent nor any of its directors, officers, agents or employees
      shall be responsible for or have any duty to ascertain, inquire into, or verify
      (a) any statement, warranty or representation made in connection with any Loan
      Document or any borrowing hereunder; (b) the performance or observance of any
      of
      the covenants or agreements of any obligor under any Loan Document, including,
      without limitation, any agreement by an obligor to furnish information directly
      to each Lender; (c) the satisfaction of any condition specified in Article
      IV,
      except
      receipt of items required to be delivered solely to the Administrative Agent;
      (d) the existence or possible existence of any Default or Unmatured Default;
      (e)
      the validity, enforceability, effectiveness, sufficiency or genuineness of
      any
      Loan Document or any other instrument or writing furnished in connection
      therewith; (f) the value, sufficiency, creation, perfection or priority of
      any
      Lien in any collateral security; or (g) the financial condition of Borrower
      or
      any guarantor of any of the Obligations or of any of Borrower’s or any such
      guarantor’s respective Subsidiaries. The Administrative Agent shall have no duty
      to disclose to the Lenders information that is not required to be furnished
      by
      Borrower to the Administrative Agent at such time, but is voluntarily furnished
      by Borrower to LaSalle (either in its capacity as Administrative Agent or in
      its
      individual capacity).

     

    10.5.  Action
      on Instructions of Lenders.
      The
      Administrative Agent shall in all cases be fully protected in acting, or in
      refraining from acting, hereunder and under any other Loan Document in
      accordance with written instructions signed by the Required Lenders, and such
      instructions and any action taken or failure to act pursuant thereto shall
      be
      binding on all of the Lenders. The Lenders hereby acknowledge that the
      Administrative Agent shall be under no duty to take any discretionary action
      permitted to be taken by it pursuant to the provisions of this Agreement or
      any
      other Loan Document unless it shall be requested in writing to do so by the
      Required Lenders. The Administrative Agent shall be fully justified in failing
      or refusing to take any action hereunder and under any other Loan Document
      unless it shall first be indemnified to its satisfaction by the Lenders
pro
      rata
      against
      any and all liability, cost and expense that it may incur by reason of taking
      or
      continuing to take any such action.

     

    10.6.  Employment
      of Agents and Counsel.
      The
      Administrative Agent may execute any of its duties as Administrative Agent
      hereunder and under any other Loan Document by or through employees, agents,
      and
      attorneys-in-fact and shall not be answerable to the Lenders, except as to
      money
      or securities received by it or its authorized agents, for the default or
      misconduct of any such agents or attorneys-in-fact selected by it with
      reasonable care. The Administrative Agent shall be entitled to advice of counsel
      concerning the contractual arrangement between the Administrative Agent and
      the
      Lenders and all matters pertaining to the Administrative Agent’s duties
      hereunder and under any other Loan Document.

     

    10.7.  Reliance
      on Documents; Counsel.
      The
      Administrative Agent shall be entitled to rely upon any Note, notice, consent,
      certificate, affidavit, letter, telegram, statement, paper or document believed
      by it to be genuine and correct and to have been signed or sent by the proper
      person or persons, and, in respect to legal matters, upon the opinion of counsel
      selected by the Administrative Agent, which counsel may be employees of the
      Administrative Agent.

     

    10.8.  Agent’s
      Reimbursement and Indemnification.
      The
      Lenders agree to reimburse and indemnify the Administrative Agent ratably in
      proportion to their respective Commitments (or, if the Commitments have been
      terminated, in proportion to their Commitments immediately prior to such
      termination) (i) for any amounts not reimbursed by Borrower for which the
      Administrative Agent is entitled to reimbursement by Borrower under the Loan
      Documents, (ii) for any other expenses incurred by the Administrative Agent
      on
      behalf of the Lenders, in connection with the preparation, execution, delivery,
      administration and enforcement of the Loan Documents (including, without
      limitation, for any expenses incurred by the Administrative Agent in connection
      with any dispute between the Administrative Agent and any Lender or between
      two
      or more of the Lenders) and (iii) for any liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind and nature whatsoever which may be imposed on, incurred by or
      asserted against the Administrative Agent in any way relating to or arising
      out
      of the Loan Documents or any other document delivered in connection therewith
      or
      the transactions contemplated thereby (including, without limitation, for any
      such amounts incurred by or asserted against the Administrative Agent in
      connection with any dispute between the Administrative Agent and any Lender
      or
      between two or more of the Lenders), or the enforcement of any of the terms
      of
      the Loan Documents or of any such other documents, provided that
      (i)
      no Lender shall be liable for any of the foregoing to the extent any of the
      foregoing is found in a final non-appealable judgment by a court of competent
      jurisdiction to have resulted from the gross negligence or willful misconduct
      of
      the Administrative Agent and (ii) any indemnification required pursuant to
      Section
      3.5(viii)
      shall,
      notwithstanding the provisions of this Section
      10.8,
      be paid
      by the relevant Lender in accordance with the provisions thereof. The
      obligations of the Lenders under this Section 10.8
      shall
      survive payment of the Obligations and termination of this
      Agreement.

     

    10.9.  Notice
      of Default.
      The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default or Unmatured Default hereunder unless the
      Administrative Agent has received written notice from a Lender or Borrower
      referring to this Agreement describing such Default or Unmatured Default and
      stating that such notice is a “notice of default”. In the event that the
      Administrative Agent receives such a notice, the Administrative Agent shall
      give
      prompt notice thereof to the Lenders.

     

    10.10.  Rights
      as a Lender.
      In the
      event the Administrative Agent is a Lender, the Administrative Agent shall
      have
      the same rights and powers hereunder and under any other Loan Document with
      respect to its Commitment and its Loans as any Lender and may exercise the
      same
      as though it were not the Administrative Agent, and the term “Lender” or
“Lenders” shall, at any time when the Administrative Agent is a Lender, unless
      the context otherwise indicates, include the Administrative Agent in its
      individual capacity. The Administrative Agent and its Affiliates may accept
      deposits from, lend money to, and generally engage in any kind of trust, debt,
      equity or other transaction, in addition to those contemplated by this Agreement
      or any other Loan Document, with Borrower, Guarantor or any of their
      Subsidiaries in which Borrower, Guarantor or such Subsidiary is not restricted
      hereby from engaging with any other Person. The Administrative Agent, in its
      individual capacity, is not obligated to remain a Lender.

     

    10.11.  Lender
      Credit Decision.
      Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent, any Arranger or any other Lender and based on the
      financial statements prepared by Borrower and such other documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement and the other Loan Documents. Each Lender
      also acknowledges that it will, independently and without reliance upon the
      Administrative Agent, any Arranger 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 this
      Agreement and the other Loan Documents.

     

    10.12.  Successor
      Administrative Agent.
      The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Lenders and Borrower, such resignation to be effective upon the appointment
      of a successor Administrative Agent or, if no successor Administrative Agent
      has
      been appointed, forty-five days after the retiring Agent gives notice of its
      intention to resign. The Administrative Agent may be removed at any time with
      or
      without cause by written notice received by the Administrative Agent from the
      Required Lenders, such removal to be effective on the date specified by the
      Required Lenders. Upon any such resignation or removal, the Required Lenders
      shall have the right to appoint, on behalf of Borrower and the Lenders, a
      successor Administrative Agent. If no successor Administrative Agent shall
      have
      been so appointed by the Required Lenders within thirty days after the resigning
      Agent’s giving notice of its intention to resign, then the resigning Agent may
      appoint, on behalf of Borrower and the Lenders, a successor Administrative
      Agent. Notwithstanding the previous sentence, the Administrative Agent may
      at
      any time without the consent of Borrower or any Lender, appoint any of its
      Affiliates which is a commercial bank as a successor Administrative Agent
      hereunder. If the Administrative Agent has resigned or been removed and no
      successor Administrative Agent has been appointed, the Lenders may perform
      all
      the duties of the Administrative Agent hereunder and Borrower shall make all
      payments in respect of the Obligations to the applicable Lender and for all
      other purposes shall deal directly with the Lenders. No successor Administrative
      Agent shall be deemed to be appointed hereunder until such successor
      Administrative Agent has accepted the appointment. Any such successor
      Administrative Agent shall be a commercial bank having capital and retained
      earnings of at least $100,000,000. Upon the acceptance of any appointment as
      Administrative Agent hereunder by a successor Administrative Agent, such
      successor Administrative Agent shall thereupon succeed to and become vested
      with
      all the rights, powers, privileges and duties of the resigning or removed Agent.
      Upon the effectiveness of the resignation or removal of the Administrative
      Agent, the resigning or removed Agent shall be discharged from its duties and
      obligations hereunder and under the Loan Documents. After the effectiveness
      of
      the resignation or removal of an Agent, the provisions of this Article
      X
      shall
      continue in effect for the benefit of such Agent in respect of any actions
      taken
      or omitted to be taken by it while it was acting as the Administrative Agent
      hereunder and under the other Loan Documents. In the event that there is a
      successor to the Administrative Agent by merger, or the Administrative Agent
      assigns its duties and obligations to an Affiliate pursuant to this Section
      10.12,
      then
      the term “Prime Rate” as used in this Agreement shall mean the prime rate, base
      rate or other analogous rate of the new Agent.

     

    10.13.  Administrative
      Agent’s and Arrangers’ Fees.
      Borrower agrees to pay to the Administrative Agent and the Arrangers, for their
      own respective accounts, the fees agreed to by Borrower, the Administrative
      Agent and the Arrangers pursuant to the Fee Letters.

     

    10.14.  Delegation
      to Affiliates.
      Borrower and the Lenders agree that the Administrative Agent may delegate any
      of
      its duties under this Agreement to any of its Affiliates. Any such Affiliate
      (and such Affiliate’s directors, officers, agents and employees) which performs
      duties in connection with this Agreement shall be entitled to the same benefits
      of the indemnification, waiver and other protective provisions to which the
      Administrative Agent is entitled under Articles
      IX
      and
X.

     

    10.15.  Agent
      May File Proofs of Claim.
      In case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relative to Borrower, Guarantor or any Subsidiary, the Administrative
      Agent (irrespective of whether the principal of any Loan shall then be due
      and
      payable as herein expressed or by declaration or otherwise and irrespective
      of
      whether the Administrative Agent shall have made any demand on Borrower) shall
      be entitled and empowered, by intervention in such proceeding or
      otherwise:

     

    (a)  to
      file
      and prove a claim for the whole amount of the principal and interest owing
      and
      unpaid in respect of the Loans, and all other Obligations that are owing and
      unpaid and to file such other documents as may be necessary or advisable in
      order to have the claims of the Lenders and the Administrative Agent (including
      any claim for the reasonable compensation, expenses, disbursements and advances
      of the Lenders and the Administrative Agent and their respective agents and
      counsel and all other amounts due the Lenders and the Administrative Agent
      under
Sections
      2.5,
      2.20
      and
9.6)
      allowed
      in such judicial proceedings; and

     

    (b)  to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same;

     

    and
      any
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such judicial proceeding is hereby authorized by each
      Lender to make such payments to the Administrative Agent and, in the event
      that
      the Administrative Agent shall consent to the making of such payments directly
      to the Lenders, to pay to the Administrative Agent any amount due for the
      reasonable compensation, expenses, disbursements and advances of the
      Administrative Agent and its agents and counsel, and any other amounts due
      the
      Administrative Agent under Sections
      2.5,
      2.20
      and
9.6.

     

    Nothing
      contained herein shall be deemed to authorize the Administrative Agent to
      authorize or consent to or accept or adopt on behalf of any Lender any plan
      of
      reorganization, arrangement, adjustment or composition affecting the Obligations
      or the rights of any Lender or to authorize the Administrative Agent to vote
      in
      respect of the claim of any Lender in any such proceeding.

     

    10.16.  Other
      Agents.
      No
      Lender identified on the cover page, the signature pages or otherwise in this
      Agreement, or in any document related hereto, as being the “Syndication Agent”
or a “Co-Documentation Agent” shall have any right, power, obligation,
      liability, responsibility or duty under this Agreement in such capacity other
      than those applicable to all Lenders. Each Lender acknowledges that it has
      not
      relied, and will not rely, on any Person so identified in deciding to enter
      into
      this Agreement or in taking or refraining from taking any action hereunder
      or
      pursuant hereto.

     

    ARTICLE
      XI  

     

    

     

    SETOFF;
      RATABLE PAYMENTS

     

    11.1.  Setoff.
      In
      addition to, and without limitation of, any rights of the Lenders under
      applicable law, if Borrower becomes insolvent, however evidenced, or any Default
      occurs, any and all deposits (including all account balances, whether
      provisional or final and whether or not collected or available) and any other
      Indebtedness at any time held or owing by any Lender or any Affiliate of any
      Lender to or for the credit or account of Borrower may be offset and applied
      toward the payment of the Obligations owing to such Lender, whether or not
      the
      Obligations, or any part hereof, shall then be due.

     

    11.2.  Ratable
      Payments.
      If any
      Lender, whether by setoff or otherwise, has payment made to it upon its Loans
      and other credit exposure hereunder (other than payments received pursuant
      to
Section 3.1,
      3.2,
      3.4
      or
      3.5)
      in a
      greater proportion than that received by any other Lender, such Lender agrees,
      promptly upon demand, to purchase a portion of the Aggregate Outstanding Credit
      Exposure held by the other Lenders so that after such purchase each Lender
      will
      hold its Pro Rata Share of the Aggregate Outstanding Credit Exposure. If any
      Lender, whether in connection with setoff or amounts which might be subject
      to
      setoff or otherwise, receives collateral or other protection for its Obligations
      or such amounts which may be subject to setoff, such Lender agrees, promptly
      upon demand, to take such action necessary such that all Lenders share in the
      benefits of such collateral ratably in proportion to their respective Pro Rata
      Shares of the Aggregate Outstanding Credit Exposure. In case any such payment
      is
      disturbed by legal process, or otherwise, appropriate further adjustments shall
      be made.

     

    ARTICLE
      XII  

     

    

     

    BENEFIT
      OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     

    12.1.  Successors
      and Assigns.
      The
      terms and provisions of the Loan Documents shall be binding upon and inure
      to
      the benefit of Borrower and the Lenders and their respective successors and
      assigns, except that (i) Borrower shall not have the right to assign its rights
      or obligations under the Loan Documents and (ii) any assignment by any Lender
      must be made in compliance with Section
      12.3.
      The
      Administrative Agent may treat the Person which made any Loan or which holds
      any
      Note as the owner thereof for all purposes hereof unless and until such Person
      complies with Section 12.3
      in the
      case of an assignment thereof or, in the case of any other transfer, a written
      notice of the transfer is filed with the Administrative Agent. Any assignee
      or
      transferee of the rights to any Loan or any Note agrees by acceptance of such
      transfer or assignment to be bound by all the terms and provisions of the Loan
      Documents. Any request, authority or consent of any Person, who at the time
      of
      making such request or giving such authority or consent is the owner of the
      rights to any Loan (whether or not a Note has been issued in evidence thereof),
      shall be conclusive and binding on any subsequent holder, transferee or assignee
      of the rights to such Loan.

     

    12.2.  Participations.

     

    12.2.1.  Permitted
      Participants; Effect.
      Any
      Lender may, in the ordinary course of its business and in accordance with
      applicable law, at any time sell to one or more banks or other entities
      (“Participants”)
      participating interests in any Loan owing to, and other credit exposure
      hereunder of, such Lender, any Note held by such Lender, any Commitment of
      such
      Lender or any other interest of such Lender under the Loan Documents. In the
      event of any such sale by a Lender of participating interests to a Participant,
      such Lender’s obligations under the Loan Documents shall remain unchanged, such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations, such Lender shall remain the owner of its
      Loans
      and other credit exposure hereunder and the holder of any Note issued to it
      in
      evidence thereof for all purposes under the Loan Documents, all amounts payable
      by Borrower under this Agreement shall be determined as if such Lender had
      not
      sold such participating interests, and Borrower and the Administrative Agent
      shall continue to deal solely and directly with such Lender in connection with
      such Lender’s rights and obligations under the Loan Documents.

     

    12.2.2.  Voting
      Rights.
      Each
      Lender shall retain the sole right to approve, without the consent of any
      Participant, any amendment, modification or waiver of any provision of the
      Loan
      Documents other than any amendment, modification or waiver with respect to
      any
      Credit Extension or Commitment in which such Participant has an interest which
      is of the type specified in the proviso
      to
Section
      8.5.

     

    12.2.3.  Benefit
      of Setoff.
      Borrower agrees that each Participant shall be deemed to have the right of
      setoff provided in Section 11.1
      in
      respect of its participating interest in amounts owing under the Loan Documents
      to the same extent as if the amount of its participating interest were owing
      directly to it as a Lender under the Loan Documents, provided that
      each
      Lender shall retain the right of setoff provided in Section 11.1
      with
      respect to the amount of participating interests sold to each Participant.
      The
      Lenders agree to share with each Participant, and each Participant, by
      exercising the right of setoff provided in Section 11.1,
      agrees
      to share with each Lender, any amount received pursuant to the exercise of
      its
      right of setoff, such amounts to be shared in accordance with Section 11.2
      as if
      each Participant were a Lender.

     

    12.3.  Assignments.

     

    12.3.1.  Permitted
      Assignments.
      Any
      Lender may, in the ordinary course of its business and in accordance with
      applicable law, at any time assign to one or more banks or other entities
      (“Purchasers”)
      all or
      any part of its rights and obligations under the Loan Documents. Such assignment
      shall be substantially in the form of Exhibit
      E
      or in
      such other form as may be agreed to by the parties thereto. The consent of
      Borrower, the LC Issuer and the Administrative Agent shall be required prior
      to
      an assignment becoming effective with respect to a Purchaser which is not a
      Lender or an Affiliate thereof; provided,
      however, that if a Default has occurred and is continuing, the consent of
      Borrower shall not be required. Such consents shall not be unreasonably withheld
      or delayed. Each such assignment shall (unless each of Borrower and the
      Administrative Agent otherwise consents) be in an amount not less than the
      lesser of (i) $5,000,000 or (ii) the remaining amount of the assigning Lender’s
      Commitment (calculated as at the date of such assignment).

     

    12.3.2.  Effect;
      Effective Date.
      Upon
      (i) delivery to the Administrative Agent of a notice of assignment,
      substantially in the form of Exhibit I attached to Exhibit
      E
      (a
“Notice
      of Assignment”),
      together with any consents required by Section 12.3.1,
      and
      (ii) payment of a $3,500 fee to the Administrative Agent for processing such
      assignment, such assignment shall become effective on the effective date
      specified in such Notice of Assignment. The Notice of Assignment shall contain
      a
      representation by the Purchaser to the effect that none of the consideration
      used to make the purchase of the Commitment, Loans and other credit exposure
      under the applicable assignment agreement are “plan assets” as defined under
      ERISA and that the rights and interests of the Purchaser in and under the Loan
      Documents will not be “plan assets” under ERISA. On and after the effective date
      of such assignment, such Purchaser shall for all purposes be a Lender party
      to
      this Agreement and any other Loan Document executed by or on behalf of the
      Lenders and shall have all the rights and obligations of a Lender under the
      Loan
      Documents, to the same extent as if it were an original party hereto, and no
      further consent or action by Borrower, the LC Issuer, the Lenders or the
      Administrative Agent shall be required to release the transferor Lender with
      respect to the percentage of the Aggregate Commitment, Loans and other credit
      exposure assigned to such Purchaser. Upon the consummation of any assignment
      to
      a Purchaser pursuant to this Section 12.3.2,
      the
      transferor Lender, the Administrative Agent and Borrower shall, if the
      transferor Lender or the Purchaser desires that its Loans be evidenced by Notes,
      make appropriate arrangements so that new Notes or, as appropriate, replacement
      Notes are issued to such transferor Lender and new Notes or, as appropriate,
      replacement Notes, are issued to such Purchaser, in each case in principal
      amounts reflecting their respective Commitments, as adjusted pursuant to such
      assignment.

     

    12.3.3.  Security
      Interest.
      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, and this Section shall not apply to any such pledge or assignment of
      a
      security interest; provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations hereunder or substitute any such pledgee or assignee for
      such
      Lender as a party hereto.

     

    12.3.4.  Register.
      The
      Administrative Agent shall maintain a copy of each Notice of Assignment
      delivered and accepted by it and register (the “Register”)
      for
      the recordation of names and addresses of the Lenders and the Commitment of
      each
      Lender from time to time and whether such Lender is the original Lender or
      the
      Purchaser. No assignment shall be effective unless and until the Notice of
      Assignment is accepted and registered in the Register. All records of transfer
      of a Lender’s interest in the Register shall be conclusive, absent manifest
      error, as to the ownership of the interests in the Loans. The Administrative
      Agent shall not incur any liability of any kind with respect to any Lender
      with
      respect to the maintenance of the Register. 

     

    12.4.  Dissemination
      of Information.
      Borrower authorizes each Lender to disclose to any Participant or Purchaser
      or
      any other Person acquiring an interest in the Loan Documents by operation of
      law
      (each a “Transferee”)
      and
      any prospective Transferee any and all information in such Lender’s possession
      concerning the creditworthiness of Borrower and its Subsidiaries, including
      without limitation any information contained in any Reports; provided that
      each
      Transferee and prospective Transferee agrees to be bound by Section 9.11
      of this
      Agreement.

     

    12.5.  Tax
      Treatment.
      If any
      interest in any Loan Document is transferred to any Transferee which is
      organized under the laws of any jurisdiction other than the United States or
      any
      State thereof, the transferor Lender shall cause such Transferee, concurrently
      with the effectiveness of such transfer, to comply with the provisions of
Section 3.5(iv).

     

    ARTICLE
      XIII  

     

    

     

    GUARANTY

     

    13.1.  Guaranty.
      For
      valuable consideration, the receipt of which is hereby acknowledged, and to
      induce the Lenders to make advances to Borrower and to participate in Letters
      of
      Credit and Swingline Advances and to induce the LC Issuer to issue Letters
      of
      Credit, Guarantor hereby absolutely and unconditionally guarantees prompt
      payment when due, whether at stated maturity, upon acceleration or otherwise,
      and at all times thereafter, of any and all Obligations of Borrower to the
      Administrative Agent, the Lenders, the LC Issuer and any holder of a Note,
      or
      any of them, under or with respect to the Loan Documents, whether for principal,
      interest, fees, expenses or otherwise, in each case howsoever created, arising
      or evidenced, whether direct or indirect, absolute or contingent, now or
      hereafter existing, or due or to become due (collectively, the “Guaranteed
      Obligations”).
      Additionally, Guarantor agrees to reimburse the Administrative Agent, the
      Lenders and the LC Issuer for any costs incurred in enforcing this Article
      XIII
      against
      Guarantor. Any term or provision of this Article
      XIII
      to the
      contrary notwithstanding, the aggregate maximum amount of the Guaranteed
      Obligations for which Guarantor shall be liable shall not exceed the maximum
      amount for which Guarantor can be liable without rendering this Agreement or
      any
      other Loan Document as it relates to Guarantor, voidable under applicable law
      relating to fraudulent conveyance or fraudulent transfer.

     

    13.2.  Waivers.
      Guarantor waives notice of the acceptance of this guaranty and of the extension
      or continuation of the Guaranteed Obligations or any part thereof. Guarantor
      further waives presentment, protest, notice of notices delivered or demand
      made
      on Borrower or action or delinquency in respect of the Guaranteed Obligations
      or
      any part thereof, including any right to require the Administrative Agent and
      the Lenders to sue Borrower, any other guarantor or any other Person obligated
      with respect to the Guaranteed Obligations or any part thereof, or otherwise
      to
      enforce payment thereof against any collateral securing the Guaranteed
      Obligations or any part thereof, and provided
      further
      that if at any time any payment of any portion of the Guaranteed Obligations
      is
      rescinded or must otherwise be restored or returned upon the insolvency,
      bankruptcy or reorganization of Borrower or otherwise, Guarantor’s obligations
      hereunder with respect to such payment shall be reinstated at such time as
      though such payment had not been made and whether or not the Administrative
      Agent or the Lenders are in possession of this guaranty. The Administrative
      Agent, the LC Issuer and the Lenders shall have no obligation to disclose or
      discuss with Guarantor their assessments of the financial condition of
      Borrower.

     

    13.3.  Guaranty
      Absolute.
      This
      guaranty is a guaranty of payment and not of collection, is a primary obligation
      of Guarantor and not merely one of surety, and the validity and enforceability
      of this guaranty shall be absolute and unconditional irrespective of, and shall
      not be impaired or affected by any of the following: (a) any extension,
      modification or renewal of, or indulgence with respect to, or substitutions
      for,
      the Guaranteed Obligations or any part thereof or any agreement relating thereto
      at any time; (b) any failure or omission to enforce any right, power or remedy
      with respect to the Guaranteed Obligations or any part thereof or any agreement
      relating thereto, or any collateral; (c) any waiver of any right, power or
      remedy with respect to the Guaranteed Obligations or any part thereof or any
      agreement relating thereto or with respect to any collateral; (d) any release,
      surrender, compromise, settlement, waiver, subordination or modification, with
      or without consideration, of any collateral, any other guaranties with respect
      to the Guaranteed Obligations or any part thereof, or any other obligation
      of
      any Person with respect to the Guaranteed Obligations or any part thereof;
      (e)
      the enforceability or validity of the Guaranteed Obligations or any part thereof
      or the genuineness, enforceability or validity of any agreement relating thereto
      or with respect to any collateral; (f) the application of payments received
      from
      any source to the payment of obligations other than the Guaranteed Obligations,
      any part thereof or amounts which are not covered by this guaranty even though
      the Administrative Agent, the LC Issuer and the Lenders might lawfully have
      elected to apply such payments to any part or all of the Guaranteed Obligations
      or to amounts which are not covered by this guaranty; (g) any change in the
      ownership of Borrower or the insolvency, bankruptcy or any other change in
      the
      legal status of Borrower; (h) the change in or the imposition of any law,
      decree, regulation or other governmental act which does or might impair, delay
      or in any way affect the validity, enforceability or the payment when due of
      the
      Guaranteed Obligations; (i) the failure of Guarantor or Borrower to maintain
      in
      full force, validity or effect or to obtain or renew when required all
      governmental and other approvals, licenses or consents required in connection
      with the Guaranteed Obligations or this guaranty, or to take any other action
      required in connection with the performance of all obligations pursuant to
      the
      Guaranteed Obligations or this guaranty; (j) the existence of any claim, setoff
      or other rights which Guarantor may have at any time against Borrower or any
      other Person in connection herewith or an unrelated transaction; or (k) any
      other circumstance, whether or not similar to any of the foregoing, which could
      constitute a defense to a guarantor, including without limitation all defenses
      based on suretyship or impairment of collateral; all whether or not Guarantor
      shall have had notice or knowledge of any act or omission referred to in the
      foregoing clauses
      (a)
      through
(k)
      of this
      Section. It is agreed that Guarantor’s liability hereunder is several and
      independent of any other guaranties or other obligations at any time in effect
      with respect to the Guaranteed Obligations or any part thereof and that
      Guarantor’s liability hereunder may be enforced regardless of the existence,
      validity, enforcement or non-enforcement of any such other guaranties or other
      obligations or any provision of any applicable law or regulation purporting
      to
      prohibit payment by Borrower of the Guaranteed Obligations in the manner agreed
      upon by Borrower and the Administrative Agent, the LC Issuer and the
      Lenders.

     

    13.4.  Acceleration.
      Guarantor agrees that, as between Guarantor on the one hand, and the Lenders,
      the LC Issuer and the Administrative Agent, on the other hand, the obligations
      of Borrower guaranteed under this Article
      XIII
      may be
      declared to be forthwith due and payable, or may be deemed automatically to
      have
      been accelerated, as provided in Section
      8.1
      hereof
      for purposes of this Article XIII,
      notwithstanding any stay, injunction or other prohibition (whether in a
      bankruptcy proceeding affecting Borrower or otherwise) preventing such
      declaration as against Borrower and that, in the event of such declaration
      or
      automatic acceleration, such obligations (whether or not due and payable by
      Borrower) shall forthwith become due and payable by Guarantor for purposes
      of
      this Article
      XIII.

     

    13.5.  Marshaling;
      Reinstatement.
      None of
      the Lenders nor the LC Issuer nor the Administrative Agent nor any Person acting
      for or on behalf of the Lenders, the LC Issuer or the Administrative Agent
      shall
      have any obligation to marshal any assets in favor of Guarantor or against
      or in
      payment of any or all of the Guaranteed Obligations. If Guarantor, Borrower
      or
      any other guarantor of all or any part of the Guaranteed Obligations makes
      a
      payment or payments to any Lender, the LC Issuer or the Administrative Agent,
      or
      any Lender, the LC Issuer or the Administrative Agent receives any proceeds
      of
      collateral, which payment or payments or any part thereof are subsequently
      invalidated, declared to be fraudulent or preferential, set aside and/or
      required to be repaid to Borrower, Guarantor, such other guarantor or any other
      Person, or their respective estates, trustees, receivers or any other party,
      including, without limitation, Guarantor, under any bankruptcy law, state or
      federal law, common law or equitable cause, then, to the extent of such payment
      or repayment, the part of the Guaranteed Obligations which has been paid,
      reduced or satisfied by such amount shall be reinstated and continued in full
      force and effect as of the time immediately preceding such initial payment,
      reduction or satisfaction.

     

    13.6.  Delay
      of Subrogation.
      Notwithstanding any payment made by or for the account of Guarantor pursuant
      to
      this Article
      XIII,
      Guarantor shall not be subrogated to any right of the Administrative Agent
      or
      any Lender, or have any right to obtain reimbursement from Borrower, until
      such
      time as the Administrative Agent and each Lender shall have received final
      payment in cash of the full amount of the Guaranteed Obligations.

     

    ARTICLE
      XIV  

     

    

     

    NOTICES

     

    14.1.  Notices.

     

    (a)  Except
      as
      otherwise permitted by Section 2.13
      with
      respect to borrowing notices, all notices, requests and other communications
      to
      any party hereunder shall be in writing (including electronic transmission,
      facsimile transmission or similar writing) and shall be given to such party:
      (x)
      in the case of Borrower or the Administrative Agent, at its address or facsimile
      number set forth on Schedule
      14.1,
      (y) in
      the case of any Lender or the LC Issuer, at its address or facsimile number
      set
      forth on Schedule
      14.1
      or (z)
      in the case of any party, at such other address or facsimile number as such
      party may hereafter specify for the purpose by notice to the Administrative
      Agent and Borrower in accordance with the provisions of this Section 14.1.
      Each
      such notice, request or other communication shall be effective (i) if given
      by
      facsimile transmission, when transmitted to the facsimile number specified
      in
      this Section and confirmation of receipt is received, (ii) if given by
      mail, 72 hours after such communication is deposited in the mails with first
      class postage prepaid, addressed as aforesaid, or (iii) if given by any other
      means, when delivered at the address specified in this Section; provided that
      notices to the Administrative Agent under Article
      II
      shall
      not be effective until received. Notices delivered through electronic
      communications to the extent provided in paragraph
      (b)
      below,
      shall be effective as provided in said paragraph
      (b).

     

    (b)  Notices
      and other communications to the Lenders hereunder may be delivered or furnished
      by electronic communication (including e-mail and internet or intranet websites)
      pursuant to procedures approved by the Administrative Agent or as otherwise
      determined by the Administrative Agent, provided
      that the
      foregoing shall not apply to notices to any Lender pursuant to Article
      II
      if such
      Lender has notified the Administrative Agent that it is incapable of receiving
      notices under such Article by electronic communication. The Administrative
      Agent
      or Borrower may, in its respective discretion, agree to accept notices and
      other
      communications to it hereunder by electronic communications pursuant to
      procedures approved by it or as it otherwise determines, provided
      that
      such determination or approval may be limited to particular notices or
      communications. Unless the Administrative Agent otherwise prescribes, (i)
      notices and other communications sent to an e-mail address shall be deemed
      received upon the sender’s receipt of an acknowledgement from the intended
      recipient (such as by the “return receipt requested” function, as available,
      return e-mail or other written acknowledgement), provided
      that if
      such notice or other communication is not given during the normal business
      hours
      of the recipient, such notice or communication shall be deemed to have been
      given at the opening of business on the next Business Day for the recipient,
      and
      (ii) notices or communications posted to an internet or intranet website shall
      be deemed received upon the deemed receipt by the intended recipient at its
      e-mail address as described in the foregoing clause (i) of notification that
      such notice or communication is available and identifying the website address
      therefor.

     

    14.2.  Change
      of Address.
      Borrower, the Administrative Agent and any Lender may each change the address
      for service of notice upon it by a notice in writing to the other parties
      hereto.

     

    ARTICLE
      XV  

     

    

     

    COUNTERPARTS

     

    This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one agreement, and any of the parties hereto may
      execute this Agreement by signing any such counterpart. This Agreement shall
      be
      effective when it has been executed by Borrower, Guarantor, the Administrative
      Agent, the LC Issuer and the Lenders and each party has notified the
      Administrative Agent by facsimile transmission or telephone that it has taken
      such action. Electronic records of executed Loan Documents maintained by the
      Lenders shall deemed to be originals.

     

    ARTICLE
      XVI  

     

    

     

    CHOICE
      OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     

    16.1.  CHOICE
      OF LAW.
      THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF
      LAW
      PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT
      THE
      LAW OF CONFLICTS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
      APPLICABLE TO NATIONAL BANKS.

     

    16.2.  CONSENT
      TO JURISDICTION.
      EACH OF BORROWER AND GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
      JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN
      CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
      ANY
      LOAN DOCUMENTS AND EACH OF BORROWER AND GUARANTOR HEREBY IRREVOCABLY AGREES
      THAT
      ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
      IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
      HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH
      A
      COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
      THE RIGHT OF THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER TO BRING
      PROCEEDINGS AGAINST BORROWER OR GUARANTOR IN THE COURTS OF ANY OTHER
      JURISDICTION. ANY JUDICIAL PROCEEDING BY BORROWER OR GUARANTOR AGAINST THE
      ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER OR ANY AFFILIATE OF THE
      ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY OR
      INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
      WITH
      ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO,
      ILLINOIS.

     

    16.3.  WAIVER
      OF JURY TRIAL.
      BORROWER, GUARANTOR, THE ADMINISTRATIVE AGENT, THE LC ISSUER AND EACH LENDER
      HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
      INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
      ANY
      WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE
      RELATIONSHIP ESTABLISHED THEREUNDER.

     

    [Signatures
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                    13284408
                      01712640

                  	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, Borrower, Guarantor, the Lenders, the LC Issuer, the
      Syndication Agent and the Administrative Agent have executed this Agreement
      as
      of the date first above written.

     

    BORROWER:

    

    VECTREN
      CAPITAL, CORP.

    

    By:/s/
      Robert L.
      Goocher                      

    Name: 
      Robert L. Goocher

    Title:   
      Vice President, Treasurer and Assistant Secretary

    

    

    GUARANTOR:

    

    VECTREN
      CORPORATION

    

    By:/s/
      Robert L.
      Goocher                      

    Name: 
      Robert L. Goocher

    Title:   
      Vice President and Treasurer 

    LASALLE
      BANK NATIONAL ASSOCIATION,
      Individually, as Administrative Agent and as the LC Issuer

    

    By:/s/
      Sean P.
      Drinan                          

    Name: 
      Sean P. Drinan

    Title:   
      First Vice President

    JPMORGAN
      CHASE BANK, N.A.,
      Individually and as Syndication Agent

    

    By:/s/
      Robert C.
      Mertensotto                 

    Name:
      Robert C. Mertensotto

    Title:  
      Managing Director

    WACHOVIA
      BANK, N.A.

    

    By:/s/
      Allison
      Newman                             

    Name: 
      Allison Newman

    Title:   
      Vice President

    FIFTH
      THIRD BANK

    

    By:/s/
      Dwight
      Hamilton                           

    Name: 
      Dwight Hamilton

    Title:   
      Senior Vice President

    MIZUHO
      CORPORATE BANK, LTD.

    

    By:/s/
      Raymond
      Ventura                        

    Name: 
      Raymond Ventura

    Title:   
      Deputy General Manager

    U.S.
      BANK NATIONAL ASSOCIATION

    

    By:/s/
      Karen
      Meyer                            

    Name: 
      Karen Meyer

    Title:   
      Vice President

    REGIONS
      BANK

    

    By:/s/
      Scott A.
      Dvornik                        

    Name: 
      Scott A. Dvornik

    Title:   
      Vice President

    OLD
      NATIONAL BANK

    

    By:/s/
      Sara L.
      Miller                             

    Name: 
      Sara L. Miller

    Title:   
      Vice President

    

    

     

    
      
        
          
            	
                    13284408
                      01712640

                  	 	
                    Vectren
                      Capital, Corp. Credit
                      Agreement

                  

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    PRICING
      SCHEDULE

    

    

    
      	
              Pricing

            	
              Level
                I Status

            	
              Level
                II Status

            	
              Level
                III Status

            	
              Level
                IV Status

            	
              Level
                V Status

            	
              Level
                VI Status

            
	
              Applicable
                Margin for Eurodollar Advances

            	
              0.230%

            	
              0.270%

            	
              0.350%

            	
              0.425%

            	
              0.500%

            	
              0.800%

            
	
              Applicable
                Margin for Floating Rate Advances

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            
	
              Applicable
                Fee Rate

            	
              0.07%

            	
              0.08%

            	
              0.10%

            	
              0.125%

            	
              0.15%

            	
              0.20%

            

    

    

      In
        addition, at any time that
        the
        Aggregate Outstanding Credit Exposure exceeds 50% of the Aggregate
        Commitment,
        then
        the Applicable Margin for Floating Rate Advances and Eurodollar Advances
        shall
        be increased by 0.10%.

     

    For
      the
      purposes of this Schedule, the following terms have the following meanings,
      subject to the final paragraph of this Schedule:

     

    “Level
      I
      Status” exists at any date if, on such date, Guarantor’s Moody’s Rating is A2 or
      better or Guarantor’s S&P Rating is A or better.

     

    “Level
      II
      Status” exists at any date if, on such date, (i) Guarantor has not qualified for
      Level I Status and (ii) Guarantor’s Moody’s Rating is A3 or better or
      Guarantor’s S&P Rating is A- or better.

     

    “Level
      III Status” exists at any date if, on such date (i) Guarantor has not qualified
      for Level I Status or Level II Status and (ii) Guarantor’s Moody’s Rating is
      Baa1 or better and Guarantor’s S&P Rating is BBB+ or better.

     

    “Level
      IV
      Status” exists at any date if, on such date (i) Guarantor has not qualified for
      Level I Status, Level II Status or Level III Status and (ii) Guarantor’s Moody’s
      Rating is Baa2 or better and Guarantor’s S&P Rating is BBB or
      better.

     

    “Level
      V
      Status” exists at any date if, on such date (i) Guarantor has not qualified for
      Level I Status, Level II Status, Level III Status or Level IV Status and (ii)
      Guarantor’s Moody’s Rating is Baa3 or better and Guarantor’s S&P Rating is
      BBB- or better.

     

    “Level
      VI
      Status” exists at any date if, on such date, Guarantor has not qualified for
      Level I Status, Level II Status, Level III Status, Level IV Status or Level
      V
      Status.

     

    “Moody’s
      Rating” means, at any time, the corporate credit rating (without third-party
      credit enhancement) issued by Moody’s and then in effect or the issuer’s rating
      issued by Moody’s and then in effect with respect to Guarantor.

     

    “Rating”
      means the S&P Rating or the Moody’s Rating.

     

    “S&P
      Rating” means, at any time, the corporate credit rating (without third-party
      credit enhancement) issued by S&P and then in effect or the issuer’s rating
      issued by S&P and then in effect with respect to Guarantor.

     

    “Status”
      means either Level I Status, Level II Status, Level III Status, Level IV Status,
      Level V Status or Level VI Status.

     

    The
      Applicable Margin and Applicable Fee Rate shall be determined in accordance
      with
      the foregoing table based on Guarantor’s Status as determined from its
      then-current Moody’s and S&P Ratings. The credit rating in effect on any
      date for the purposes of this Schedule is that in effect at the close of
      business on such date. If at any time Guarantor has no Moody’s Rating or no
      S&P Rating, but has a Rating, the Status shall be determined based on the
      Rating that is then in effect. If at any time Guarantor has no Moody’s Rating
      and has no S&P Rating, Level VI Status shall exist. If Guarantor is split
      rated and the rating differential is two credit rating levels or more, then
      the
      intermediate credit rating at the midpoint (or, if there is no midpoint, the
      higher of the two credit ratings) shall apply.

     

    

    
      
        
          
            	
                    13284408
                      01712640

                  	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      I

    

    COMMITMENTS

    

    
      	
              Lender

            	
              Commitment
                

            
	
               

            	
               

            
	
              JPMorgan
                Chase Bank, N.A.

            	
              $45,000,000

            
	
              LaSalle
                Bank National Association

            	
              $45,000,000

            
	
              Wachovia
                Bank, N.A.

            	
              $40,000,000

            
	
              Fifth
                Third Bank

            	
              $35,000,000

            
	
              Mizuho
                Corporate Bank, Ltd.

            	
              $35,000,000

            
	
              US
                Bank National Association

            	
              $25,000,000

            
	
              Regions
                Bank

            	
              $15,000,000

            
	
              Old
                National

            	
              $15,000,000

            
	 	 
	
              Total

            	
              $255,000,000

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