Document:

Exhibit
4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of October 30, 2003, by and among First Regional Bancorp, a
California corporation (the “Company”), and each of the
purchasers (individually, a “Purchaser” and, collectively, the “Purchasers”)
listed on the Schedule of Purchasers attached as Exhibit A hereto.

 

WHEREAS,
the Company has agreed to issue and sell to the Purchasers pursuant to
subscription agreements (the “Subscription
Agreements”), by and
among the Company and the Purchasers, up to an aggregate of $15,000,000 of the
Company’s 6% Convertible Debentures due 2023 (the “Initial Securities”), to be issued under an Indenture (the “Indenture”)
dated as of October 30, 2003 between the Company and Wells Fargo, National
Association, as Trustee (the “Trustee”);

 

WHEREAS, the Initial Securities will be
convertible into shares (the “Underlying
Securities”) of
common stock of the Company, no par value (the “Common Stock”);
and

 

WHEREAS, in order to induce the Purchasers to
purchase the Securities, the Company has agreed to provide the registration
rights set forth in this Agreement for the benefit of (i) the Purchasers and
(ii) the holders of the Initial Securities and the Common Stock issuable upon
conversion of the Initial Securities (collectively, the “Securities”)
from time to time until such time as such Securities have been sold pursuant to
a Shelf Registration Statement (as defined below).

 

NOW,
THEREFORE, in consideration of the foregoing and the respective
representations, warranties, mutual covenants and agreements set forth herein,
the parties hereto agree as follows:

 

SECTION 1.         DEFINITIONS

 

Capitalized terms used but not defined herein
shall have the respective meanings set forth in the Subscription
Agreement.  As used in
this Agreement, the following capitalized terms shall have the following
respective meanings:

 

“Business
Day” means any
day, excluding Saturday, Sunday and any day which is in the City of Los Angeles
a legal holiday or a day upon which banking institutions in the City of Los
Angeles are required or authorized by law or other governmental action to
close.

 

“Closing Date”
means the date on which the sale of the Initial Securities takes place.

 

“Effectiveness
Deadline” has the
meaning set forth in Section 3(a).

 

“Exchange
Act” means the
Securities Exchange Act of 1934, as amended.

 

 

“Filing
Deadline” has the
meaning set forth in Section 3(a).

 

“Holder” has the meanings set forth in
Section 2.

 

“Liquidated
Damages” has the
meaning set forth in Section 4.

 

“Prospectus” means the prospectus included in
the Shelf Registration Statement at the time the Shelf Registration Statement
is declared effective, as amended or supplemented by any prospectus supplement
and all other amendments thereto, including post-effective amendments, and all
material incorporated by reference into such Prospectus.

 

“Placement
Agreement” means
the Private Placement Agency Agreement, dated October 6, 2003, by and
between the Company and Keefe, Bruyette & Woods, Inc.

 

“Securities
Act” means the
Securities Act of 1933, as amended.

 

“Shelf
Registration Statement”
has the meaning set forth in Section 3(a).

 

“Transfer
Restricted Securities”
means Securities and any other securities of the Company issued or issuable upon
the exercise or conversion thereof or in exchange therefor or upon any similar
event with respect thereto, whether by way of stock split or in connection with
a combination of shares, recapitalization, merger, consolidation, other
reorganization or otherwise.  As to any
particular Transfer Restricted Securities held by any particular person, once
issued such securities shall cease to be Transfer Restricted Securities when
(i) a registration statement with respect to the sale of such securities shall
have become effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, (ii) such
securities shall have been distributed by such person to a non-affiliate of
such person pursuant to Rule 144 under the Securities Act, (iii) such
securities shall have been otherwise transferred, new certificates for such
securities not bearing a legend restricting further transfer shall have been
issued to such person and subsequent disposition of such securities shall not
require registration or qualification of such securities under the Securities
Act or any similar state statute then in force, or (iv) such securities shall
have ceased to be outstanding.

 

SECTION 2.         HOLDERS

 

A person is
deemed to be a holder of Transfer Restricted Securities (each, a “Holder”)
whenever such person owns Transfer Restricted Securities.

 

SECTION 3.         SHELF REGISTRATION

 

(a)           Shelf Registration.

 

The Company
shall cause to be filed, on or prior to 60 days after the Closing Date (the “Filing
Deadline”), a shelf registration statement pursuant to Rule 415
under the Securities Act (which may be an amendment to any previously filed
registration statement (the “Shelf
Registration Statement”)), relating to all of the Transfer
Restricted Securities, and

 

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shall use its best reasonable efforts to cause such Shelf Registration
Statement to become effective on or prior to 120 days after the Closing Date
(the “Effectiveness
Deadline”).

 

The Company
shall use its best reasonable efforts to keep any Shelf Registration Statement
required by this Section 3(a) continuously effective, supplemented,
amended and current as required by and subject to the provisions of
Section 5(a) to the extent necessary to ensure that it is available for
sales of Transfer Restricted Securities and in conformity with the requirements
of this Agreement, the Securities Act and the policies, rules and regulations
of the SEC as announced from time to time, for a period of at least two years
(as extended pursuant to Section 5(b)) following the Closing Date, or such
shorter period as will terminate upon the earliest to occur of the following:
(x) all Transfer Restricted Securities covered by the Shelf Registration Statement
have been sold pursuant thereto, (y) all Transfer Restricted Securities, other
than those held by the Company and its affiliates, are eligible to be sold to
the public pursuant to Rule 144(k) under the Securities Act or any successor
rule thereof, or (z) there are no outstanding Transfer Restricted Securities
(such period being referred to herein as the “Shelf Registration Period”).

 

(b)           Provision by Holders of Certain Information in
Connection with the Shelf Registration Statement.  

 

No Holder of
Transfer Restricted Securities may include any of its Transfer Restricted
Securities in the Shelf Registration Statement unless and until such Holder
furnishes to the Company in writing, within 20 days after receipt of a request
therefor, the information specified in Item 507 or 508 of Regulation S-K, as
applicable, of the Securities Act for use in connection with any Shelf
Registration Statement or Prospectus or preliminary Prospectus included
therein, or any supplement thereto.  No
Holder of Transfer Restricted Securities shall be entitled to Liquidated
Damages pursuant to Section 4 unless and until such Holder shall have
provided all such information.  Each
selling Holder agrees to promptly furnish additional information required to be
disclosed in order to make the information previously furnished to the Company
by such Holder not materially misleading. 
Each selling Holder further agrees to be named as a selling security
holder in the Shelf Registration Statement and any Prospectus or preliminary
Prospectus included therein, or any supplement thereto, and to comply with all
applicable requirements of the Securities Act in connection with any offer or
sale of Securities by such Holder, including the prospectus delivery
requirements thereof.

 

SECTION 4.         LIQUIDATED DAMAGES

 

If (a) the
Shelf Registration Statement is not filed with the SEC on or prior to the
Filing Deadline (a “Filing Default”), (b) the Shelf Registration Statement has not been declared
effective by the SEC on or prior to the Effectiveness Deadline (an “Effectiveness
Default”), or (c) the
Shelf Registration Statement is filed and declared effective but thereafter
ceases to be effective or fails to be usable for its intended purpose without
being succeeded immediately by a post-effective amendment to such Shelf
Registration Statement that cures such failure and that is itself declared
effective immediately (a “Cessation Default”, and each of a Filing
Default, an Effectiveness Default and a Cessation Default being referred to
herein as a “Registration Default”), then, subject to Section 3(b),
the Company hereby agrees to pay to each Holder of Securities affected thereby
liquidated damages at the following rates (“Liquidated Damages”).

 

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Liquidated Damages shall accrue on any Transfer Restricted Securities
over and above the interest rate set forth in the title of the Securities from
and including the date on which any such Registration Default shall occur to
but excluding the date on which all such Registration Defaults have been cured,
at a rate of 0.50% per annum (the “Liquidated Damages Rate”) for the first
90-day period immediately following the occurrence of such Registration
Default.  The Liquidated Damages Rate
shall increase by an additional 0.25% per annum with respect to each subsequent
90-day period until all Registration Defaults have been cured, up to a maximum
Liquidated Damages Rate of 1.0% per annum. 
Liquidated Damages shall continue to so accrue until, but not including,
the date on which the applicable Registration Default is cured or, if earlier,
upon the termination of the Shelf Registration Period.  In the case of Transfer Restricted
Securities that have been converted into Common Stock, Liquidated Damages shall
accrue at a per annum rate equal to the Liquidated Damages Rate applied to the
Conversion Price (as defined in the Indenture) in effect as of any date of
determination (or, if no Initial Securities are then outstanding, the
Conversion Price that would be in effect were Initial Securities then
outstanding) of such shares of Common Stock that are Transfer Restricted
Securities. Notwithstanding the foregoing, no Liquidated Damages shall accrue
as to any Transfer Restricted Security from and after the earlier of (x) the
date such security is no longer a Transfer Restricted Security and (y) the
expiration of the Shelf Registration Period. The rate of accrual of the
Liquidated Damages with respect to any period shall not exceed the rate
provided for in this paragraph notwithstanding the occurrence of multiple
concurrent Registration Defaults. 
Following the cure of all Registration Defaults requiring the payment by
the Company of Liquidated Damages to the Holders of Transfer Restricted
Security pursuant to this Section, the accrual of Liquidated Damages will cease
(without in any way limiting the effect of any subsequent Registration Default
requiring the payment of Liquidated Damages by the Company). No Liquidated
Damages shall be payable at any time with respect to any securities which are not
Transfer Restricted Securities.  No
other monetary damages shall be available to the Holders of Transfer Restricted
Security for a Registration Default.

 

All accrued
Liquidated Damages shall be paid to the Holders entitled thereto and shall be
payable semiannually in arrears, at such time as regular interest payments on
the Initial Securities are required to be paid (or, if none are outstanding,
when such interest payments would be required to be paid if they were
outstanding).  All obligations of the Company
set forth in the preceding paragraph that are outstanding with respect to any
Transfer Restricted Security at the time such security ceases to be a Transfer
Restricted Security shall survive until such time as all such obligations with
respect to such security shall have been satisfied in full.

 

SECTION 5.         REGISTRATION
PROCEDURES

 

(a)           Shelf Registration Statement

 

In connection
with the Shelf Registration Statement, the Company shall:

 

(i)              use its best reasonable efforts to effect such
registration to permit the sale of the Transfer Restricted Securities being
sold in accordance with the intended method or methods of distribution thereof
(as indicated in the information furnished to the Company pursuant to
Section 3(b)), and pursuant thereto the Company will prepare and file with
the SEC the Shelf Registration Statement on any appropriate form under the

 

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Securities
Act, which form shall be available for the sale of the Transfer Restricted
Securities in accordance with the intended method or methods of distribution
thereof within the time periods and otherwise in accordance with the provisions
of this Agreement;

 

(ii)             use its best reasonable efforts to keep the Shelf
Registration Statement continuously effective and provide all requisite
financial statements for the period specified in Section 3 of this
Agreement; and upon the occurrence of any event that would cause the Shelf
Registration Statement or the Prospectus contained therein (A) to contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statement therein not misleading or (B) not to be effective and usable
for resale of Transfer Restricted Securities during the period required by this
Agreement, the Company shall file promptly an appropriate amendment to the
Shelf Registration Statement curing such defect, and, if the SEC review is
required, use its best reasonable efforts to cause such amendment to be
declared effective as soon as practicable;

 

(iii)            prepare and file with the SEC such amendments and
post-effective amendments to the applicable Registration Statement as may be
necessary to keep the Shelf Registration Statement effective for the applicable
period set forth in Section 3, as the case may be; cause the Prospectus to
be supplemented by any required Prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 under the Securities Act, and to comply fully
with Rules 424, 430A and 462, as applicable, under the Securities Act in a
timely manner; and comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by the Shelf Registration
Statement during the applicable period in accordance with the intended method
or methods of distribution by the sellers thereof set forth in the Shelf
Registration Statement or supplement to the Prospectus;

 

(iv)            advise each Holder promptly and, if requested by such
Holder, confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with
respect to the Shelf Registration Statement or any post-effective amendment
thereto, when the same has become effective, (B) of any request by the SEC for
amendments to the Shelf Registration Statement or amendments or supplements to
the Prospectus or for additional information relating thereto, (C) of the
issuance by the SEC of any stop order suspending the effectiveness of the Shelf
Registration Statement under the Securities Act or of the suspension by any
state securities commission of the qualification of the Transfer Restricted
Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, and (D) of the existence of any
fact or the happening of any event that makes any statement of a material fact
made in the Shelf Registration Statement, the Prospectus, any amendment or
supplement thereto or any document incorporated by reference therein untrue, or
that requires the making of any additions to or changes in the Shelf
Registration Statement in order to make the statements therein not misleading,
or that requires the making of any additions to or changes in the Prospectus in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading (provided that the Company
determines in its good faith judgment that the

 

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disclosure
of such fact or happening or event at such time would have a material adverse
effect on the business, financial condition, operations or prospects of the
Company or the disclosure otherwise relates to a material business transaction
which has not yet been publicly disclosed); and if at any time the SEC shall
issue any stop order suspending the effectiveness of the Shelf Registration
Statement, or any state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or
blue sky laws, the Company shall use its best reasonable efforts to obtain the
withdrawal or lifting of such order at the earliest possible time;

 

(v)             subject to Section 5(a)(ii), if any fact or event
contemplated by Section 5(a)(iv)(D) above shall exist or have occurred,
prepare a supplement or post-effective amendment to the Shelf Registration
Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

 

(vi)            furnish to each Holder in connection with such sale,
if any, before filing with the SEC, copies of the Shelf Registration Statement
or any Prospectus included therein or any amendments or supplements to the Shelf
Registration Statement or Prospectus (including all documents incorporated by
reference after the initial filing of the Shelf Registration Statement), which
documents will be subject to the review and reasonable comment of such Holders
in connection with such sale, if any, for a period of at least five Business
Days, and the Company will not file the Shelf Registration Statement or
Prospectus or any amendment or supplement to the Shelf Registration Statement
or Prospectus (including all such documents incorporated by reference) to which
such Holder shall reasonably object within five Business Days after the receipt
thereof; a Holder shall be deemed to have reasonably objected to such filing if
the Shelf Registration Statement, amendment, Prospectus or supplement, as
applicable, as proposed to be filed, contains an untrue statement of a material
fact or omit to state any material fact necessary to make the statements
therein not misleading or fails to comply with the applicable requirements of
the Securities Act;

 

(vii)           as soon as reasonably practicable prior to the filing
of any document that is to be incorporated by reference into the Shelf
Registration Statement or Prospectus, provide copies of such document to each
Holder in connection with such sale, if any, make the Company’s representatives
available for discussion of such document and other customary due diligence
matters for a period of at least five Business Days, and, if appropriate,
include such information in such document prior to the filing thereof as such
Holder may reasonably request;

 

(viii)          make available at reasonable times for inspection by
each Holder and any attorney or accountant retained by such Holder, all
financial and other records, pertinent corporate documents of the Company and
cause the Company’s officers, directors and employees to supply all information
reasonably requested by any such

 

6

 

Holder,
attorney or accountant in connection with the Shelf Registration Statement or
any post-effective amendment thereto subsequent to the filing thereof and prior
to its effectiveness; provided, however, that such persons shall
first agree in writing with the Company that any information that is reasonably
and in good faith designated by the Company in writing as confidential at the
time of delivery of such information shall be kept confidential by such
persons, unless (A) disclosure of such information on a non-confidential basis
is required by court or administrative order or is necessary to respond to
inquires of regulatory authorities, (B) disclosure of such information on a
non-confidential basis is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing
of the Shelf Registration Statement or the use of any Prospectus), (C) such
information becomes generally available to the public other than as a result of
a disclosure or failure to safeguard such information by such person or (D)
such information becomes available to such person from a source other than the
Company and its subsidiaries and such source is not known, after due inquiry,
by such person to be bound by a confidentiality agreement; provided  further,
that the foregoing investigation shall be coordinated on behalf of such persons
by one representative designated by and on behalf of such persons and any such
confidential information shall be available from such representative to such
persons so long as any person agrees to be bound by such confidentiality
agreement;

 

(ix)            if requested by any Holder in connection with such
sale, as soon as reasonably practicable include in the Shelf Registration
Statement or Prospectus, pursuant to a supplement or post-effective amendment
if necessary, such information as such Holder may reasonably request to have
included therein, including, without limitation, information relating to the “Plan
of Distribution” of the Transfer Restricted Securities; and make all required
filings of such Prospectus supplement or post-effective amendment as soon as
reasonably practicable after the Company is notified of the matters to be
included in such Prospectus supplement or post-effective amendment;

 

(x)             furnish to each Holder in connection with such sale,
if any, without charge, at least one copy of the Shelf Registration Statement,
as first filed with the SEC, and of each amendment thereto, including all
documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference);

 

(xi)            deliver to each Holder, without charge, such number of
copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Holder reasonably may request; the
Company hereby consents to the use (in accordance with law) of the Prospectus and
any amendment or supplement thereto by each Holder in connection with the
offering and the sale of the Transfer Restricted Securities covered by the
Prospectus or any amendment or supplement thereto;

 

(xii)           upon the request of any Holder, enter into such agreements
(including underwriting agreements) and make such representations and
warranties and take all such other actions in connection therewith in order to
expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to the Shelf Registration Statement as may be reasonably requested by
such Holder in connection with any sale or

 

7

 

resale
pursuant to any applicable Registration Statement.  In such connection, the Company shall:

 

(1)           upon the request of any Holder (or, in the case of
paragraph (B) below, upon the request of the Holders of a majority in principal
amount of the Securities covered by the Shelf Registration Statement, provided
that Holders of Common Stock issued upon the conversion of the Initial
Securities shall be deemed to be Holders of the aggregate principal amount of
Initial Securities from which such Common Stock was converted and, provided,
further, that such request is made in writing prior to the date on which
the Shelf Registration Statement is declared effective), furnish (or in the
case of paragraph (B) below, use its best reasonable efforts to cause to be
furnished) to such Holder, upon the effectiveness of the Shelf Registration
Statement:

 

(A)          a certificate, dated such date, signed on behalf of
the Company by (x) the President or any Vice President and (y) a principal
financial or accounting officer of the Company, confirming, as of the date
thereof, the matters set forth in Sections 2.6 and 6.5(a) of the Placement
Agreement and such other similar matters as such Holder may reasonably request;

 

(B)           an opinion, dated the date of effectiveness of the
Shelf Registration Statement, of independent counsel to the Company, covering
matters of the type customarily covered in opinions of issuer’s counsel
requested in underwritten offerings, such as the effectiveness of the Shelf
Registration Statement and such other matters as may be reasonably requested by
such Holders; without limiting the foregoing, such counsel may state further
that such counsel assumes no responsibility for, and has not independently
verified, the accuracy, completeness or fairness of the financial statements,
notes and schedules and other financial data included in the Shelf Registration
Statement or the related Prospectus; and

 

(2)           deliver such other documents and certificates as may
be reasonably requested by the selling Holders to evidence compliance with the
matters covered in clause (1) above and with any customary conditions contained
in any agreement entered into by the Company pursuant to this clause (xii);

 

(xiii)          prior to any public offering of Transfer Restricted
Securities, take such action as is reasonably required under the securities or
blue sky laws of such jurisdictions within the United States of America as the
Selling Holders may request to enable the disposition in such jurisdictions of
the Transfer Restricted Securities covered by the Shelf Registration Statement;
provided, however, that the Company shall not be required to register
or qualify as a foreign corporation where the Company is not now so qualified
or to take any action that would subject the Company to the service of process
in suits or to taxation, other than as to matters and transactions relating to
the Shelf Registration Statement, in any jurisdiction where the Company is not
now so subject;

 

8

 

(xiv)          in connection with any sale of Transfer Restricted
Securities that will result in such securities no longer being Transfer
Restricted Securities, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and to register
such Transfer Restricted Securities in such denominations and such names as the
selling Holders may request at least two Business Days prior to such sale of
Transfer Restricted Securities;

 

(xv)           use its best reasonable efforts to cause the
disposition of the Transfer Restricted Securities covered by the Shelf
Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller
or sellers thereof to consummate the disposition of such Transfer Restricted
Securities, subject to the proviso contained in clause (xiii) above;

 

(xvi)          otherwise use its best reasonable efforts to comply
with all applicable rules and regulations of the SEC, and make generally
available to its security holders with regard to the Shelf Registration
Statement, as soon as practicable, a consolidated earnings statement meeting
the requirements of Rule 158 (which need not be audited) covering a
twelve-month period beginning after the effective date of the Shelf
Registration Statement (as such term is defined in paragraph (c) of Rule 158
under the Securities Act);

 

(xvii)         provide promptly to each Holder, upon request, each
document filed with the SEC pursuant to the requirements of Section 13 or
Section 15(d) of the Exchange Act; and

 

(xviii)        use its best reasonable efforts to cause the Common
Stock issuable upon conversion of the Initial Securities to be listed on the
Nasdaq Stock Market or such other securities exchange or automated quotation
system on which similar securities issued by the Company are then listed, to
the extent such Common Stock satisfies applicable listing requirements.

 

(b)           Restrictions on Holders.

 

Each Holder
agrees by acquisition of a Transfer Restricted Security that, upon receipt of
the notice referred to in Section 5(a)(iv)(C) or any notice from the
Company of the existence of any fact of the kind described in
Section 5(a)(iv)(D) (in each case, a “Suspension Notice”), such Holder will
forthwith discontinue disposition of Transfer Restricted Securities pursuant to
the Shelf Registration Statement until (i) such Holder has received copies of
the supplemented or amended Prospectus contemplated by Section 5(a)(v), or
(ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the “Recommencement Date”); provided, however, that
any Suspension Period occurring as a result of notice from the Company of the
existence of any fact of the kind described in Section 5(a)(iv)(D) shall
not exceed, for so long as this Agreement is in effect, the shorter of (x) the
period ending on the date the information responsible for the Suspension Period
is disclosed to the public and (y) 30 days (provided that no two
Suspension

 

9

 

Periods shall occur during any period of 90 consecutive days).  Each Holder receiving a Suspension Notice
hereby agrees that it will either (i) destroy any Prospectuses, other than
permanent file copies, then in such Holder’s possession which have been
replaced by the Company with more recently dated Prospectuses or (ii) deliver
to the Company (at the Company’s expense) all copies, other than permanent file
copies, then in such Holder’s possession of the Prospectus covering such
Transfer Restricted Securities that was current at the time of receipt of the
Suspension Notice.  The time period
regarding the effectiveness of the Shelf Registration Statement set forth in
Section 3, shall be extended by a number of days equal to the number of
days in the period from and including the date of delivery of the Suspension
Notice to the Recommencement Date.

 

SECTION 6.         REGISTRATION EXPENSES

 

(a)           All expenses
incident to the Company’s performance of or compliance with this Agreement will
be borne by the Company, regardless of whether the Shelf Registration Statement
becomes effective, including without limitation:  (i) all registration and filing fees and expenses; (ii) all fees
and expenses of compliance with federal securities and state blue sky or
securities laws; (iii) all expenses of printing, messenger and delivery
services and telephone; (iv) all reasonable fees and disbursements of counsel
for the Company; (v) all application and filing fees; and (vi) all reasonable
fees and disbursements of independent certified public accountants of the
Company (including the expenses of any special audit required by or incident to
such performance).

 

The Company
will, in any event, bear its internal expenses (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any person, including special experts, retained by the Company.

 

(b)           Each Holder, and
not the Company, shall be exclusively responsible for such Holder’s pro rata
share of underwriter’s fees incurred by the Holders in connection with the
Shelf Registration Statement and any expenses of such Holder in connection with
the Shelf Registration Statement, including such Holder’s fees of counsel.

 

SECTION 7.         INDEMNIFICATION

 

(a)           The Company
agrees to indemnify and hold harmless each Holder, its directors, officers and
each person, if any, who controls such Holder (within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act)
from and against any and all losses, claims, damages, liabilities and judgments
(including without limitation the legal fees and other expenses incurred in
connection with investigating or defending any matter, including any action
that could give rise to any such losses, claims, damages, liabilities or
judgments) caused by any untrue statement or alleged untrue statement of a
material fact contained in the Shelf Registration Statement, preliminary
prospectus or Prospectus (or any amendment or supplement thereto), provided by
the Company to the Holders or to any prospective purchaser of Securities, or
caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such losses, claims, damages, liabilities or
judgments are

 

10

 

caused by any untrue statement or omission or alleged untrue statement
or omission that is based upon information relating to any of the Holders
furnished in writing to the Company by such Holders.

 

(b)           Each Holder
agrees, severally and not jointly, to indemnify and hold harmless the Company,
its directors, officers and each person, if any, who controls (within the
meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) the Company, to the same extent as the foregoing indemnity from
the Company set forth in Section 7(a) above, but only with reference to
information relating to such Holder furnished in writing to the Company by such
Holder for use in the Shelf Registration Statement or any amendment or
supplement thereto.  In no event shall
any Holder, its directors, officers, or any person who controls such Holder be
liable or responsible under this Section 7 for any amount in excess of the
amount by which the total amount received by such Holder with respect to its
sale of Transfer Restricted Securities pursuant to the Shelf Registration
Statement exceeds (i) the amount paid by such Holder for such Transfer
Restricted Securities, plus (ii) the amount of any damages that such Holder,
its directors, officers, or any person who controls such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.

 

(c)           In case any
action shall be commenced involving any person in respect of which indemnity
may be sought pursuant to Section 7(a) or 7(b), such person (the “Indemnified
person”)
shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying person”) in writing, and the Indemnifying person shall assume the
defense of such action, including the employment of counsel reasonably
satisfactory to the Indemnified person and shall pay all fees and expenses of
such counsel as incurred (except that in the case of any action in respect of
which indemnity may be sought pursuant to both Sections 7(a) and 7(b), a Holder
shall not be required to assume the defense of such action pursuant to this
Section 7(c), but may employ separate counsel and participate in the
defense thereof, but the fees and expenses of such counsel, except as provided
below, shall be at the expense of such Holder).  Any Indemnified person shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified person
unless (i) the employment of such counsel shall have been specifically
authorized in writing by the Indemnifying person, (ii) the Indemnifying person
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the Indemnified person or (iii) the named parties in
any such action (including any impleaded parties) include both the Indemnifying
person and the Indemnified person, and the Indemnified person shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
Indemnifying person (in which case the Indemnifying person shall not have the
right to assume the defense of such action on behalf of the Indemnified person).  It is understood that the Indemnifying
person shall not, in connection with any one action or separate but
substantially similar or related actions in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) for all Indemnified persons, and that all such fees and expenses shall
be reimbursed as they are incurred.  Any
such separate firm for the indemnified Holders shall be designated in writing
by a majority of the indemnified Holders, in the case of parties indemnified
pursuant to Section 7(a), and any such separate firm for the Company, its
directors, its officers

 

11

 

and such control persons shall be designated in writing by the Company,
in the case of parties indemnified pursuant to Section 7(b).  The Indemnifying person shall indemnify and
hold harmless the Indemnified person from and against any and all losses,
claims, damages, liabilities and judgments by reason of any settlement of any
action (i) effected with its written consent or (ii) effected without its
written consent if the settlement is entered into more than twenty Business
Days after the Indemnifying person shall have received a request from the
Indemnified person for reimbursement for the fees and expenses of counsel (in
any case where such fees and expenses are at the expense of the Indemnifying
person) and, prior to the date of such settlement, the Indemnifying person
shall have failed to comply with such reimbursement request.  No Indemnifying person shall, without the
prior written consent of the Indemnified person, effect any settlement or
compromise of, or consent to the entry of judgment with respect to, any pending
or threatened action in respect of which the Indemnified person is or could
have been a party and indemnity or contribution may be or could have been
sought hereunder by the Indemnified person, unless such settlement, compromise or
judgment (i) includes an unconditional release of the Indemnified person from
all liability on claims that are or could have been the subject matter of such
action and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of the Indemnified person.

 

(d)           To the extent
that the indemnification provided for in this Section 7 is unavailable to
an Indemnified person in respect of any losses, claims, damages, liabilities or
judgments referred to therein, then each Indemnifying person, in lieu of
indemnifying such Indemnified person hereunder, shall contribute to the amount
paid or payable by such Indemnified person as a result of such losses, claims,
damages, liabilities or judgments (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company, on the one hand, and the
indemnified Holder, on the other hand, from their sale of Transfer Restricted
Securities or (ii) if the allocation provided by clause 7(d)(i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause 7(d)(i) above but also the
relative fault of the Company, on the one hand, and the indemnified Holder, on
the other hand, in connection with the statements or omissions that resulted in
such losses, claims, damages, liabilities or judgments, as well as any other
relevant equitable considerations.  The
relative fault of the Company, on the one hand, and the indemnified Holder, on
the other hand, shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company, on the one hand, or by the indemnified Holder, on the
other hand, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and judgments referred to
above shall be deemed to include, subject to the limitations set forth in the
second paragraph of Section 7(a), any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending
any action or claim.

 

The Company
and each Holder agree that it would not be just and equitable if contribution
pursuant to this Section 7(d) were determined by pro rata allocation (even
if the Holders were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations
referred to in the immediately preceding paragraph.  The amount paid or payable by an Indemnified person as a result
of the losses, claims, damages, liabilities or judgments referred to in the
immediately

 

12

 

preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such Indemnified person in connection with investigating or defending any
matter including any action that could have given rise to such losses, claims,
damages, liabilities or judgments. 
Notwithstanding the provisions of this Section 7, in no event shall
a Holder, its directors, officers, or any person who controls such Holder, be
required to contribute, in the aggregate, pursuant to this Section 7 any
amount in excess of the amount by which the total received by such Holder with
respect to the sale of Transfer Restricted Securities pursuant to the Shelf
Registration Statement exceeds the sum of (i) the amount paid by such Holder
for such Transfer Restricted Securities, plus (ii) the amount of any damages
that such Holder, its directors, officers, or any person who controls such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.  The Holders’
obligations to contribute pursuant to this Section 7(d) are several in proportion
to the respective principal amount of the Transfer Restricted Securities held
by each Holder hereunder and not joint.

 

SECTION 8.         RULE 144 AND OTHER
INFORMATION

 

The Company
hereby agrees with each Holder, for so long as any Transfer Restricted
Securities remain outstanding and during any period in which the Company (i) is
not subject to Section 13 or 15(d) of the Exchange Act, to make available,
upon request of any Holder of Transfer Restricted Securities, adequate current
public information with respect to the Company within the meaning of paragraph
(c)(2) of Rule 144 under the Securities Act in order to permit sales of such
Transfer Restricted Securities pursuant to Rule 144 under the Securities Act
and (ii) is subject to Section 13 or 15(d) of the Exchange Act, to make
all filings required thereby in a timely manner in order to permit sales of
such Transfer Restricted Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 under the
Securities Act.

 

SECTION 9.         MISCELLANEOUS

 

(a)           Remedies.

 

The Company
acknowledges and agrees that any failure by the Company to comply with its
obligations under Section 3 may result in material irreparable injury to
the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Section 3.  The Company further agrees to waive the defense
in any action for specific performance that a remedy at law would be adequate.

 

(b)           No Inconsistent Agreements.

 

The Company
will not, on or after the date of this Agreement, enter into any agreement with
respect to its securities that is inconsistent with the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions.  The Company has not

 

13

 

previously entered into any agreement granting any registration rights
with respect to its securities to any person. 
The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Company’s securities under any agreement in effect on the date.

 

(c)           Notices.

 

All notices
and other communications hereunder shall be in writing and shall be deemed
sufficiently given and served for all purposes (i) when personally delivered or
given by machine-confirmed facsimile, (ii) one business day after a writing is
delivered to a national overnight courier service or (iii) three Business Days
after a writing is deposited in the United States mail, first class postage or
other charges prepaid and registered, return receipt requested, in each case,
addressed as follows (or at such other address for a party as shall be
specified by like notice): (A) in the case of the Company, to First Regional
Bancorp., 1801 Century Park East, Los Angeles, California 90067, Attention:
Chief Financial Officer, Facsimile No.: (310) 552-1772, and (B) in the case of
any Holder, at the address set forth on the stock records of the Company.

 

(d)           Amendments and Waivers.

 

No
modifications or amendments to, or waivers of, any provision of this Agreement
may be made, except pursuant to a document signed by the Company and Holders of
a majority in principal amount of the Securities affected by such amendment,
modification, supplement, waiver or consents (provided that holders of Common
Stock issued upon conversion of Initial Securities shall not be deemed holders
of Common Stock, but shall be deemed to be holders of the aggregate principal
amount of Initial Securities from which such Common Stock was converted).

 

(e)           Interpretation.

 

When a
reference is made in this Agreement to Sections, paragraphs, clauses or
Exhibits, such reference shall be to a Section, paragraph, clause or Exhibit to
this Agreement unless otherwise indicated. 
The words “include,”  “includes,” and “including”
when used herein shall be deemed in each case to be followed by the words “without
limitation.”  The table of
contents and headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.  This Agreement has been
negotiated by the respective parties hereto and their attorneys and the
language hereof will not be construed for or against either party.  The phrases “the date of this Agreement,”
“the
date hereof,” and terms of similar import, unless the context otherwise
requires, shall be deemed to refer to October 30, 2003.  The words “hereof,”  “herein,”  “herewith,”  “hereby” and “hereunder” and words of similar import
shall, unless otherwise stated, be construed to refer to this Agreement as a
whole and not to any particular provision of this Agreement.

 

(f)            No Third-Party Beneficiaries.

 

No person or
entity not a party to this Agreement shall be deemed to be a third-party
beneficiary hereunder or entitled to any rights hereunder.

 

14

 

(g)           Successors and Assigns.

 

Other than
with respect to transferees as to which the Securities held by such transferee
have ceased to be Transfer Restricted Securities, this Agreement shall inure to
the benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided, however, that nothing
herein shall be deemed to permit any assignment, transfer or other disposition
of Transfer Restricted Securities in violation of the terms or of the
Subscription Agreement.  If any
transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement, including the restrictions on resale
set forth in this Agreement and, if applicable, the Subscription Agreement, and
such person shall be entitled to receive the benefits.

 

(h)           Entire Agreement.

 

This Agreement
is intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein.  There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted with respect to the
Transfer Restricted Securities.  This
Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.

 

(i)            Severability.

 

If any
provision of this Agreement is held to be illegal, invalid or unenforceable
under present or future laws, then, if possible, such illegal, invalid or
unenforceable provision will be modified to such extent as is necessary to
comply with such present or future laws and such modification shall not affect
any other provision hereof; provided that if such provision may not be
so modified such illegality, invalidity or unenforceability will not affect any
other provision, but this Agreement will be reformed, construed and enforced as
if such invalid, illegal or unenforceable provision had never been contained
herein.

 

(j)            GOVERNING LAW.

 

THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF
CALIFORNIA.

 

(k)           Banking Laws.

 

Each of the
provisions of this Agreement is subject to and shall be enforced in compliance
with applicable banking laws.

 

15

 

(l)            Counterparts.

 

This Agreement
may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to each the
other parties, it being understood that all parties need not sign the same
counterpart.

 

(signature page follows)

 

16

 

IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first above written.

 

 

	
   

  	
  First Regional Bancorp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack A. Sweeney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack A. Sweeney

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wellington Management Company, LLP

  
	
   

  	
  As investment advisor on behalf of the client accounts

  
	
   

  	
  Listed on the attached Schedule A

  
	
   

  	
  as a Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Julie A. Jenkins

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Julie A. Jenkins

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as a Purchaser

  
	
   

  	
   

  
	
   

  	
  BANC FUND VI L.P.

  
	
   

  	
  By:

  	
  MidBanc VI L.P.

  
	
   

  	
   

  	
  An Illinois limited partnership,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANC FUNDS COMPANY, L.L.C.

  
	
   

  	
   

  	
  An Illinois limited liability company,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles J. Moore

  	
   

  
	
   

  	
   

  	
  Charels J. Moore, Member

  
										

 

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

 

17

 

	
   

  	
  as a Purchaser

  
	
   

  	
   

  
	
   

  	
  BANC FUND V L.P.

  
	
   

  	
  By:

  	
  MidBanc V L.P.

  
	
   

  	
   

  	
  An Illinois limited partnership,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANC FUNDS COMPANY, L.L.C.

  
	
   

  	
   

  	
  An Illinois limited liability company,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles J. Moore

  	
   

  
	
   

  	
   

  	
  Charels J. Moore, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SuNOVA Partners, L.P.

  
	
   

  	
  SuNOVA Offshore Ltd.

  
	
   

  	
  as a Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Felice Gelman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Felice Gelman

  
	
   

  	
   

  	
  Title:

  	
  Managing Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KBW Asset Management

  
	
   

  	
  as a Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael T. O’Brien

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael O’Brien

  
	
   

  	
   

  	
  Title:

  	
  CEO & President

  
							

 

18

 

Schedule A

 

Bay Pond Partners, L.P.

 

Bay Pond Investors (Bermuda) L.P.

 

First Financial Fund, Inc. (nominee name Barnett + Co)

 

19

 

Exhibit
A

 

Schedule of
Purchasers

 

	
  Name and Address

  of Purchaser

  	
   

  	
  Number
  of  Securities

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bay Pond Partners, L.P.

  c/o Wellington Management Company, LLP

  75 State Street

  Boston, Massachusetts  02109

  Attention:  Gina Di Mento

  	
   

  	
  3,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bay Pond Investors (Bermuda) L.P.

  c/o Wellington Management Company, LLP

  75 State Street

  Boston, Massachusetts  02109

  Attention:  Gina Di Mento

  	
   

  	
  1,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First Financial Fund, Inc.(nominee name Barnett + Co)

  c/o Wellington Management Company, LLP

  75 State Street

  Boston, Massachusetts  02109

  Attention:  Gina Di Mento

  	
   

  	
  3,200

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Banc Fund VI L.P.

  c/o The Banc Funds Company, L.L.C.

  208 S. LaSalle Street, Suite 1680

  Chicago, IL  60604

  Attention:  Charles J. Moore

  	
   

  	
  2,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Banc Fund V L.P.

  c/o The Banc Funds Company, L.L.C.

  208 S. LaSalle Street, Suite 1680

  Chicago, IL  60604

  Attention:  Charles J. Moore

  	
   

  	
  1,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SuNOVA Offshore Ltd.

  780 Third Avenue, 30th Floor

  New York, NY  10017

  Attention:  John Frigiola

  	
   

  	
  1,876

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SuNOVA Partners, L.P.

  780 Third Avenue, 30th Floor

  New York, NY  10017

  Attention:  John Frigiola

  	
   

  	
  1,124

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  KBW Asset Management

  2 Hudson Place, 4th Floor

  Hoboken, NJ  07030

  Attention:  Compliance Officer

  	
   

  	
  500

  	
   

  

 

20Exhibit
10.1

 

 

 

$500,000,000

 

 

REVOLVING
CREDIT AGREEMENT

 

 

Dated as of October 30, 2003

 

among

 

EQUITABLE RESOURCES, INC.,

as the Borrower,

 

 

BANK OF
AMERICA, N.A.,

as Administrative Agent and L/C Issuer,

 

 

JPMORGAN CHASE BANK,

BANK ONE, NA,

and

CITIBANK, N.A.

as Co-Syndication Agents,

 

PNC BANK, NATIONAL ASSOCIATION,

as Documentation Agent

 

and

 

The Other Lenders Party Hereto

 

 

BANC OF AMERICA SECURITIES LLC,

and

J.P. MORGAN SECURITIES INC.,

as

Joint
Lead Arrangers and Co-Book Managers

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.  DEFINITIONS AND ACCOUNTING TERMS

  
	
   

  	
  1.01

  	
  Defined Terms

  
	
   

  	
  1.02

  	
  Other Interpretive Provisions

  
	
   

  	
  1.03

  	
  Accounting Terms

  
	
   

  	
  1.04

  	
  Rounding

  
	
   

  	
  1.05

  	
  References to Agreements and
  Laws

  
	
   

  	
  1.06

  	
  Times
  of Day

  
	
   

  	
  1.07

  	
  Letter of Credit Amounts

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.  THE COMMITMENTS AND BORROWINGS

  
	
   

  	
  2.01

  	
  Loans

  
	
   

  	
  2.02

  	
  Borrowings,
  Conversions and Continuations of Loans

  
	
   

  	
  2.03

  	
  Letters of Credit

  
	
   

  	
  2.04

  	
  Prepayments

  
	
   

  	
  2.05

  	
  Termination or Reduction of
  Commitments

  
	
   

  	
  2.06

  	
  Repayment of Loans

  
	
   

  	
  2.07

  	
  Interest

  
	
   

  	
  2.08

  	
  Fees

  
	
   

  	
  2.09

  	
  Computation of Interest and
  Fees

  
	
   

  	
  2.10

  	
  Evidence of Debt

  
	
   

  	
  2.11

  	
  Payments Generally

  
	
   

  	
  2.12

  	
  Sharing of Payments

  
	
   

  	
  2.13

  	
  Extension of Stated
  Maturity Date

  
	
   

  	
  2.14

  	
  Increase in Commitments

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.  TAXES, YIELD PROTECTION AND ILLEGALITY

  
	
   

  	
  3.01

  	
  Taxes

  
	
   

  	
  3.02

  	
  Illegality

  
	
   

  	
  3.03

  	
  Inability to Determine Rates

  
	
   

  	
  3.04

  	
  Increased Cost and Reduced
  Return; Capital Adequacy

  
	
   

  	
  3.05

  	
  Funding Losses

  
	
   

  	
  3.06

  	
  Matters Applicable to all
  Requests for Compensation

  
	
   

  	
  3.07

  	
  Survival

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.  CONDITIONS PRECEDENT TO CLOSING DATE AND
  TO CREDIT EXTENSIONS

  
	
   

  	
  4.01

  	
  Conditions of Closing Date
  and Initial Credit Extension

  
	
   

  	
  4.02

  	
  Conditions to all Credit
  Extensions

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  5.01

  	
  Corporate Existence and Power

  
	
   

  	
  5.02

  	
  Corporate and Governmental
  Authorization; No Contravention

  
	
   

  	
  5.03

  	
  Binding Effect

  
	
   

  	
  5.04

  	
  Financial Information

  
	
   

  	
  5.05

  	
  Litigation

  
	
   

  	
  5.06

  	
  No
  Default

  
	
   

  	
  5.07

  	
  Compliance with ERISA

  
	
   

  	
  5.08

  	
  Environmental Matters

  
	
   

  	
  5.09

  	
  Taxes

  
	
   

  	
  5.10

  	
  Subsidiaries

  
	
   

  	
  5.11

  	
  Regulatory
  Restrictions on Borrowing; Margin Regulations

  
	
   

  	
  5.12

  	
  Full Disclosure

  

 

i

 

	
   

  	
  5.13

  	
  Tax Shelter Regulations

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.  AFFIRMATIVE COVENANTS

  
	
   

  	
  6.01

  	
  Information

  
	
   

  	
  6.02

  	
  Payment of Obligations

  
	
   

  	
  6.03

  	
  Maintenance of Property;
  Insurance

  
	
   

  	
  6.04

  	
  Conduct of Business and Maintenance
  of Existence

  
	
   

  	
  6.05

  	
  Compliance with Laws

  
	
   

  	
  6.06

  	
  Inspection of Property, Books
  and Records

  
	
   

  	
  6.07

  	
  Use of Proceeds

  
	
   

  	
  6.08

  	
  Governmental
  Approvals and Filings

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.  NEGATIVE COVENANTS

  
	
   

  	
  7.01

  	
  Liens

  
	
   

  	
  7.02

  	
  Debt to Total Capital

  
	
   

  	
  7.03

  	
  Transactions with
  Affiliates

  
	
   

  	
  7.04

  	
  Limitation of Other
  Restrictions on Dividends by Subsidiaries, etc

  
	
   

  	
  7.05

  	
  Mergers and Sales of Assets

  
	
   

  	
  7.06

  	
  Change in Nature of Business

  
	
   

  	
  7.07

  	
  Use of Proceeds

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.  EVENTS OF DEFAULT AND REMEDIES

  
	
   

  	
  8.01

  	
  Events of Default

  
	
   

  	
  8.02

  	
  Remedies Upon Event of Default

  
	
   

  	
  8.03

  	
  Application of Funds

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.  ADMINISTRATIVE AGENT

  
	
   

  	
  9.01

  	
  Appointment and
  Authorization of Administrative Agent

  
	
   

  	
  9.02

  	
  Delegation of Duties

  
	
   

  	
  9.03

  	
  Liability of Administrative
  Agent

  
	
   

  	
  9.04

  	
  Reliance by Administrative Agent

  
	
   

  	
  9.05

  	
  Notice of Default

  
	
   

  	
  9.06

  	
  Credit Decision; Disclosure of
  Information by Administrative Agent

  
	
   

  	
  9.07

  	
  Indemnification of Administrative
  Agent

  
	
   

  	
  9.08

  	
  Administrative Agent in its
  Individual Capacity

  
	
   

  	
  9.09

  	
  Successor Administrative Agent

  
	
   

  	
  9.10

  	
  Administrative Agent
  May File Proofs of Claim

  
	
   

  	
  9.11

  	
  Other
  Agents; Arrangers and Managers

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.  MISCELLANEOUS

  
	
   

  	
  10.01

  	
  Amendments,
  Etc.

  
	
   

  	
  10.02

  	
  Notices and Other Communications;
  Facsimile Copies

  
	
   

  	
  10.03

  	
  No
  Waiver; Cumulative Remedies

  
	
   

  	
  10.04

  	
  Attorney Costs, Expenses and Taxes

  
	
   

  	
  10.05

  	
  Indemnification by the Borrower

  
	
   

  	
  10.06

  	
  Payments
  Set Aside

  
	
   

  	
  10.07

  	
  Successors and Assigns

  
	
   

  	
  10.08

  	
  Confidentiality

  
	
   

  	
  10.09

  	
  Set-off

  
	
   

  	
  10.10

  	
  Interest Rate Limitation

  
	
   

  	
  10.11

  	
  Counterparts

  
	
   

  	
  10.12

  	
  Integration

  
	
   

  	
  10.13

  	
  Survival of Representations
  and Warranties

  
	
   

  	
  10.14

  	
  Severability

  
	
   

  	
  10.15

  	
  Tax
  Forms

  

 

ii

 

	
   

  	
  10.16

  	
  Governing Law

  
	
   

  	
  10.17

  	
  Waiver of Right to Trial by Jury

  
	
   

  	
  10.18

  	
  Termination of Commitments
  Under Existing Credit Agreement

  
	
   

  	
  10.19

  	
  ENTIRE AGREEMENT

  
	
   

  	
   

  	
   

  
	
   

  	
  SIGNATURES

  

 

iii

 

	
  SCHEDULES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.01

  	
   

  	
  Commitments and Pro Rata Shares

  
	
   

  	
  10.02

  	
   

  	
  Administrative Agent’s Office, Certain Addresses for
  Notices

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Form of

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A

  	
   

  	
  Loan Notice

  
	
   

  	
  B

  	
   

  	
  Note

  
	
   

  	
  C

  	
   

  	
  Compliance Certificate

  
	
   

  	
  D

  	
   

  	
  Assignment and Assumption

  
	
   

  	
  E-1

  	
   

  	
  Opinion of Reed Smith LLP

  
	
   

  	
  E-2

  	
   

  	
  Opinion of In-House Counsel for the Borrower

  

 

iv

 

CREDIT AGREEMENT

 

This REVOLVING CREDIT AGREEMENT (“Agreement”) is entered into as
of October 30, 2003, among EQUITABLE RESOURCES, INC., a Pennsylvania corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent and L/C Issuer, JPMORGAN CHASE BANK, BANK ONE, NA, and CITIBANK, N.A., as
Co-Syndication Agents, and PNC BANK, NATIONAL ASSOCIATION, as Documentation
Agent.

 

The Borrower has requested that the Lenders provide a revolving credit
facility and the Lenders are willing to do so on the terms and conditions set
forth herein.

 

In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined
Terms.  As used in this
Agreement, the following terms shall have the meanings set forth below:

 

“Administrative Agent”
means Bank of America in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify the
Borrower and the Lenders.

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

 

“Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through
one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.  “Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Agent-Related Persons”  means the Administrative Agent,
together with its Affiliates (including, in the case of Bank of America in its
capacity as the Administrative Agent, Bank of America Securities LLC), and the
officers, directors, employees, agents and attorneys-in-fact of such Persons
and Affiliates.

 

“Aggregate Commitments”
means the Commitments of all the Lenders.

 

“Agreement” means
this Credit Agreement.

 

“ANPI” means
Appalachian NPI, LLC a Delaware limited liability company.

 

“ANPI Obligations”
means obligations with respect to the 7.76% Senior Secured Bonds due
February 28, 2016 of ANPI, with respect to the related swap transaction
between ANPI and Credit Suisse First Boston International and with respect to
the ownership interests in Appalachian Natural Gas Trust, in each case under
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders.

 

 

“ANPI Transaction”
means the transaction pursuant to which the ANPI Obligations were incurred.

 

“Applicable Rate”
means, from time to time, the following percentages per annum (set forth in
basis points), based upon the Debt Rating as set forth below:

 

Applicable
Rate

 

	
  Pricing

  Level

  	
   

  	
  Debt Ratings

  S&P/Moody’s

  	
   

  	
  Facility

  Fee

  	
   

  	
  Utilization

  Fee

  	
   

  	
  Eurodollar

  Rate

  	
   

  	
  Letters

  of

  Credit

  	
   

  	
  Base

  Rate

  
	
  1

  	
   

  	
  A+/A1 or better

  	
   

  	
  8.0

  	
   

  	
  7.5

  	
   

  	
  22.0

  	
   

  	
  22.0

  	
   

  	
  0.0

  
	
  2

  	
   

  	
  A/A2

  	
   

  	
  9.0

  	
   

  	
  10.0

  	
   

  	
  31.0

  	
   

  	
  31.0

  	
   

  	
  0.0

  
	
  3

  	
   

  	
  A-/A3

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  42.5

  	
   

  	
  42.5

  	
   

  	
  0.0

  
	
  4

  	
   

  	
  BBB+/Baa1

  	
   

  	
  12.5

  	
   

  	
  10.0

  	
   

  	
  52.5

  	
   

  	
  52.5

  	
   

  	
  0.0

  
	
  5

  	
   

  	
  BBB/Baa2

  	
   

  	
  15.0

  	
   

  	
  12.5

  	
   

  	
  72.5

  	
   

  	
  72.5

  	
   

  	
  0.0

  
	
  6

  	
   

  	
  BBB-/Baa3 or
  worse

  	
   

  	
  25.0

  	
   

  	
  12.5

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  	
  0.0

  

 

“Debt Rating”
means, as of any date of determination, the rating as  determined by either S&P
or Moody’s (collectively, the “Debt Ratings”) of the Borrower’s
non-credit-enhanced, senior unsecured long-term debt; provided that if a
Debt Rating is issued by each of the foregoing rating agencies, then the higher
of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1
being the highest and the Debt Rating for Pricing Level 6 being the lowest),
unless there is a split in Debt Ratings of more than one level, in which case
the Pricing Level that is one level higher than the Pricing Level of the lower
Debt Rating shall apply; and provided  further that if no Debt
Rating is issued by either S&P or Moody’s, then such rating agency shall be
deemed to have established a rating of Pricing Level 6.

 

Initially, the Applicable
Rate shall be determined based upon the Debt Rating specified in the
certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable
Rate resulting from a publicly announced change in the Debt Rating shall be
effective during the period commencing on the date of the public announcement
thereof and ending on the date immediately preceding the effective date of the
next such change.

 

“Arranger” means
each of Banc of America Securities LLC and J.P. Morgan Securities, Inc., in
their capacity as co-lead arrangers and co-book managers.

 

“Assignment and
Assumption” means an Assignment and Assumption substantially in the form of
Exhibit D.

 

“Attorney Costs”
means and includes all fees, expenses and disbursements of any law firm or
other external counsel and, without duplication, the allocated cost of internal
legal services and all expenses and disbursements of internal counsel.

 

“Audited Financial
Statements” means the audited consolidated balance sheet of the Borrower
and its Subsidiaries for the fiscal year ended December 31, 2002 and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year of the Borrower and its Subsidiaries,
including the notes thereto.

 

2

 

“Authorizations”
means all filings, recordings, and registrations with, and all validations or
exemptions, approvals, orders, authorizations, consents, franchises, licenses,
certificates, and permits from, any Governmental Authority.

 

“Availability Period”
means the period from and including the Closing Date to the Maturity Date.

 

“Bank of America”
means Bank of America, N.A. and its successors.

 

“Base Rate”   means for any day a fluctuating rate per annum equal to the higher
of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America
as its “prime rate.”  The “prime rate”
is a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate.  Any change in such rate announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

 

“Base Rate Loan”
means a Loan that bears interest based on
the Base Rate.

 

“Benefit Arrangement”
means, at any time, an employee benefit plan within the meaning of
Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and
which is maintained or otherwise contributed to by any member of the ERISA
Group.

 

“Borrower” has the
meaning specified in the introductory paragraph hereto.

 

“Borrowing” means
a borrowing consisting of simultaneous Loans of the same Type and, in the case
of Eurodollar Rate Loans, having the same Interest Period made by each of the
Lenders pursuant to Section 2.01.

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the
state where the Administrative Agent’s Office is located and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

 

“Cash Collateralize”
has the meaning specified in Section 2.03(g).

 

“Change of Control”
means, with respect to any Person, an event or series of events by which:

 

(a)           any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of
33-1/3% or more of the equity securities of such Person entitled to vote for
members of the board of directors or equivalent governing body of such Person
on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

 

(b)           during any period of 12
consecutive months, a majority of the members of the board of directors or
other equivalent governing body of such Person cease to be composed of
individuals (i) who were members of that board or equivalent governing body on
the first day of

 

3

 

such period, (ii)
whose election or nomination to that board or equivalent governing body was approved
by individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors).

 

“Closing Date”
means the first date all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 4.01 (or, in the
case of Section 4.01(b), waived by the Person entitled to receive
the applicable payment).

 

“Code” means the
Internal Revenue Code of 1986.

 

“Commitment”
means, as to each Lender, its obligation to make Loans to the Borrower pursuant
to Section 2.01, and (b) purchase participations in L/C
Obligations, in an aggregate principal amount at any one time outstanding not
to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time
in accordance with this Agreement.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

 

“Consolidated
Debt” means, as of any date of determination, the Debt of the Borrower and
its Subsidiaries on a consolidated basis other than Non-Recourse Debt.

 

“Consolidated
Subsidiaries” means, at any date, any Subsidiary or other entity, the
accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements if such statements were prepared as of such
date.

 

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

 

“Control” has the
meaning specified in the definition of “Affiliate.”

 

“Credit Extension”
means each of the following:  (a) a
Borrowing and (b) an L/C Credit Extension.

 

“Debt” means, as
to any Person at a particular time, without duplication, all of the following,
whether or not included as Debt or liabilities in accordance with GAAP:

 

(a)           all obligations of such
Person for borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           all non-contingent
obligations (and, for purposes of Section 8.01(e) and the
definitions of Material Debt and Material Financial Obligations, all contingent
obligations) of such Person arising under letters of credit (including standby
and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

 

4

 

(c)           all obligations of such
Person to pay the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business);

 

(d)           debt (excluding prepaid
interest thereon) secured by a Lien on property owned or being purchased by
such Person (including debt arising under conditional sales or other title
retention agreements), whether or not such debt shall have been assumed by such
Person or is limited in recourse;

 

(e)           capital leases;

 

(f)            to the extent required
to be included on the Borrower’s consolidated balance sheet as debt or
liabilities in accordance with GAAP, Synthetic Lease Obligations;

 

(g)           all obligations of such
Person for the payment of money under Production Payments; and

 

(h)           all Guarantees of such
Person in respect of any of the foregoing.

 

For all purposes hereof,
the Debt of the Borrower shall include the Debt of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited
liability company) in which the Borrower or any Subsidiary of the Borrower is a
general partner or a joint venturer, unless such Debt is expressly made
non-recourse to the Borrower or Subsidiary, as applicable.

 

“Debt Rating” has
the meaning set forth in the definition of “Applicable Rate.”

 

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means
any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default Rate”
means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate
Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Loan plus 2% per
annum, in each case to the fullest extent permitted by applicable Laws.

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Domestic” means
organized under the laws of any state of the United States.

 

“Eligible Assignee”
has the meaning specified in Section 10.07(g).

 

“Environmental Laws”
means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of

 

5

 

its Subsidiaries directly or indirectly resulting from
or based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Substances, (c) exposure to any Hazardous Substances, (d) the release or
threatened release of any Hazardous Substances into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, or any
successor statute.

 

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

 

“Eurodollar Rate”
means for any Interest Period with respect to any Eurodollar Rate Loan:

 

(a)           the rate per annum
equal to the rate determined by the Administrative Agent to be the offered rate
that appears on the page of the Telerate screen (or any successor thereto) that
displays an average British Bankers Association Interest Settlement Rate for
deposits in Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, or

 

(b)           if the rate referenced
in the preceding clause (a) does not appear on such page or service or such
page or service shall not be available, the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate on such other
page or other service that displays an average British Bankers Association
Interest Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period, or

 

(c)           if the rates referenced
in the preceding clauses (a) and (b) are not available, the rate per annum
determined by the Administrative Agent as the rate of interest at which
deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate Loan being
made, continued or converted by Bank of America and with a term equivalent to
such Interest Period would be offered by Bank of America’s London Branch to
major banks in the London interbank eurodollar market at their request at
approximately 4:00 p.m. (London time) two Business Days prior to the first day
of such Interest Period.

 

“Eurodollar Rate Loan”
means a Loan that bears interest at a rate based on the Eurodollar Rate.

 

“Event of Default”
has the meaning specified in Section 8.01.

 

“Excluded Subsidiary”
means at any time a Subsidiary which is not a Material Subsidiary, and is
organized solely for the purpose of holding, directly or indirectly, an
ownership interest in one entity or property (or related entities or
properties), does not engage in any business unrelated to such entity(ies) or
property(ies) or the financing thereof and does not have any assets or
indebtedness other than those related to its interest in such entity(ies) or
property(ies) or the financing thereof and which shall have been identified as
an Excluded Subsidiary at or prior to such time by notice from the Borrower to
the Lenders.

 

6

 

“Existing 364-Day
Credit Agreement” means the 364-Day Credit Agreement dated as of
November 1, 2002 by and among the Borrower, Bank of America, N.A., as
Administrative Agent, and the other agents and lenders therein named.

 

“Existing Credit
Agreement” means that certain Credit Agreement dated as of November 1,
2002 among the Borrower, Bank of America, N.A., as administrative agent, and
the other agents and lenders therein named.

 

“Existing Lenders”
means the lenders who are parties to the Existing Credit Agreement and the
lenders who are parties to the Existing 364-Day Credit Agreement.

 

“Federal Funds Rate”  means, for any day, the 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 by the Federal Reserve Bank on the
Business Day next succeeding such day; provided that (a) if such day is
not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the
next succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

 

“Fee Letters”
means the letter agreement, dated September 29, 2003 among the Borrower,
the Administrative Agent and Banc of America Securities LLC and the letter
agreement, dated September 29, 2003 among the Borrower and J.P. Morgan
Securities, Inc.

 

“Foreign Lender”
has the meaning specified in Section 10.15(a)(i).

 

“Forward
Sale” means an obligation to deliver oil, gas or other minerals to be acquired
or produced in the future in consideration of advance payment therefor.

 

“FRB” means the
Board of Governors of the Federal Reserve System of the United States.

 

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision
thereof, any agency, authority, instrumentality, regulatory body, court,
administrative tribunal, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

 

“Granting Lender”
has the meaning specified in Section 10.07(h).

 

“Guarantee” means,
as to any Person, any (a) any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Debt or
other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt or other
obligation, (ii) to purchase or lease property, securities or services for the
purpose of assuring the obligee in respect of such Debt or other obligation of
the payment or performance of such Debt or other obligation, (iii) to maintain
working

 

7

 

capital, equity capital or any other financial
statement condition or liquidity or level of income or cash flow of the primary
obligor so as to enable the primary obligor to pay such Debt or other
obligation, or (iv) entered into for the purpose of assuring in any other
manner the obligee in respect of such Debt or other obligation of the payment
or performance thereof or to protect such obligee against loss in respect
thereof (in whole or in part), or (b) any Lien on any assets of such Person
securing any Debt or other obligation of any other Person, whether or not such
Debt or other obligation is assumed by such Person.  The amount of any Guarantee shall be deemed to be an amount equal
to the stated or determinable amount of the related primary obligation, or
portion thereof, in respect of which such Guarantee is made or, if not stated
or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

 

“Hazardous Substances”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

 

“Indemnified
Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees” has
the meaning set forth in Section 10.05.

 

“Interest Payment Date”
means, (a) as to any Loan other than a Base Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds
three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b)
as to any Base Rate Loan, the last Business Day of each March, June,
September and December and the Maturity Date.

 

“Interest Period”
means, as to each Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one, two, three or six months thereafter, as
selected by the Borrower in its Loan Notice; provided that:

 

(i)            any Interest Period
that would otherwise end on a day that is not a Business Day shall be extended
to the next succeeding Business Day unless such Business Day falls in another
calendar month, in which case such Interest Period shall end on the next
preceding Business Day;

 

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

 

(iii)          no Interest Period shall
extend beyond the Maturity Date.

 

“IRS” means the
United States Internal Revenue Service.

 

“Laws” means,
collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

 

8

 

“L/C Advance”
means, with respect to each Lender, such Lender’s funding of its participation
in any L/C Borrowing in accordance with its Pro Rata Share.

 

“L/C Borrowing”
means an extension of credit resulting from a drawing under any Letter of
Credit which has not been reimbursed on the date when made or refinanced as a
Borrowing.

 

“L/C Credit Extension”
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the renewal or increase of the amount thereof.

 

“L/C Issuer” means
Bank of America in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder.

 

“L/C Obligations”
means, as at any date of determination, the aggregate undrawn amount of all
outstanding Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including all L/C Borrowings.

 

“Lender” has the
meaning specified in the introductory paragraph hereto and, as the context
requires, includes the L/C Issuer.

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such
in such Lender’s Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrower and the Administrative
Agent.

 

“Letter of Credit”
means any standby letter of credit issued hereunder.

 

“Letter of Credit
Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

 

“Letter of Credit
Expiration Date” means the day that is seven days prior to the Maturity
Date then in effect (or, if such day is not a Business Day, the next preceding
Business Day).

 

“Letter of Credit
Sublimit” means an amount equal to $150,000,000.  The Letter of Credit Sublimit is part of, and not in addition to,
the Aggregate Commitments.

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security
interest or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, and any
financing lease having substantially the same economic effect as any of the
foregoing).

 

“Loan” means an
extension of credit by a Lender to the Borrower under Article II.

 

“Loan Documents”
means this Agreement, each Note, and the Fee Letters.

 

“Loan Notice”
means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to
the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a),
which, if in writing, shall be substantially in the form of Exhibit A.

 

“Material Debt”
means Debt (other than (i) Non-Recourse Debt and (ii) the Loans) of the
Borrower and one or more Subsidiaries, arising in one or more related or
unrelated transactions, in an aggregate principal or face amount exceeding
$50,000,000.

 

9

 

“Material Financial
Obligations” means (i) a principal or face amount of Debt, (ii) payment or
collateralization obligations in respect of Swap Contracts, or (iii) payment
obligations in respect of Forward Sales, in each case of the Borrower or any of
its Subsidiaries, arising in one or more related or unrelated transactions,
exceeding in the aggregate $50,000,000.

 

“Material Plan”
means, at any time, a Plan or Plans having aggregate Unfunded Liabilities in
excess of $50,000,000.

 

“Material Subsidiary”
means any Subsidiary of Borrower for which (i) its assets and the assets of its
consolidated Subsidiaries comprise more than 5% of the assets of the Borrower
and its consolidated Subsidiaries, or (ii) its revenue and the revenue of its
consolidated Subsidiaries comprise more than 5% of the revenue of the Borrower
and its consolidated Subsidiaries, in each case determined on a consolidated
basis in accordance with GAAP as of the end of the most recent fiscal year.

 

“Maturity Date”
means the earlier of (a) the Stated Maturity Date and (b) the effective date of
any other termination, cancellation, or acceleration of all Commitments under
this Agreement.

 

“Moody’s” means
Moody’s Investors Service, Inc. and any successor thereto.

 

“Multiemployer
Plan” means, at any time, an employee pension benefit plan within the
meaning of Section 4001(a)(3)
of ERISA to which any member of the ERISA Group is then making or accruing an
obligation to make contributions, or has within the preceding five plan years
made contributions, including for these purposes any Person which ceased to be
a member of the ERISA Group during such five year period.

 

“Non-Recourse Debt”
of any Person means Debt secured by a Lien on one or more assets of such
Person, where the rights and remedies of the holder of such Debt in respect of
such Debt do not extend to any other assets of such Person and, if such Person
is organized under the laws of or doing business in the United States or any
political subdivision thereof or therein, as to which such holder has
effectively waived (or subordinated in favor of the Lenders) such holder’s
right to make the election provided under 11 U.S.C. § 1111(b)(1)(A) (a “Recourse
Waiver”); provided however, that no Recourse Waiver shall be required with
respect to Production Payments, and no Recourse Waiver shall be required with
respect to the ANPI Obligations.  Debt
of an Excluded Subsidiary which is without recourse to the Borrower or any
other Subsidiary shall be deemed Non-Recourse Debt of such Excluded Subsidiary
secured by all assets of such Excluded Subsidiary (whether or not such Debt is
in fact so secured) and no Recourse Waiver shall be required in respect
thereof.  For purposes of this
definition, the holders of ANPI Obligations which are Debt of a Person shall be
deemed to have a Lien (to the extent permitted by Section 7.01(j) hereof)
on assets of such Person securing such ANPI Obligations.

 

“NORESCO” shall
mean NORESCO LLC, a Delaware limited liability company and a wholly-owned
subsidiary of the Borrower.

 

“NORESCO Project”
shall mean any project of NORESCO or of a Subsidiary of NORESCO related to the
development, design, construction and operation of energy plant facilities.

 

“Note” means a
promissory note made by the Borrower in favor of a Lender evidencing Loans made
by such Lender, substantially in the form of Exhibit B.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any the Borrower arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against any the Borrower or any Affiliate of the
Borrower of any proceeding under

 

10

 

any Debtor Relief Laws naming such Person as the
debtor in such proceeding, regardless of whether such interest and fees are
allowed claims in such proceeding.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Outstanding Amount”
means (i) with respect to Loans on any date, the aggregate outstanding
principal amount thereof after giving effect to any borrowings and prepayments
or repayments of Loans occurring on such date; and (ii) with respect to any L/C
Obligations on any date, the amount of such L/C Obligations on such date after
giving effect to any L/C Credit Extension occurring on such date and any other
changes in the aggregate amount of the L/C Obligations as of such date,
including as a result of any reimbursements of outstanding unpaid drawings
under any Letters of Credit or any reductions in the maximum amount available
for drawing under Letters of Credit taking effect on such date.

 

“Participant” has
the meaning specified in Section 10.07(d).

 

“PBGC” means the Pension
Benefit Guaranty Corporation or any entity succeeding to any or all of its
functions under ERISA.

 

“Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

 

“Plan” means at any time an employee pension
benefit plan (other than a Multiemployer Plan) which is covered by Title IV of
ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue
code and either (i) is maintained, or contributed to, by any member of the
ERISA Group for employees of any member of the ERISA Group or (ii) has at any
time within the preceding five years been maintained, or contributed to, by any
Person which was at such time a member of the ERISA Group for employees of any
Person which was at such time a member of the ERISA Group.

 

“Production Payment”
means an assignment of an interest in a fixed quantity (measured by proceeds or
by volume) of oil and gas or other hydrocarbons when produced from a specified
oil and gas property or properties, in consideration for a payment in advance
of production.

 

“Pro Rata Share”
means, with respect to each Lender at any time, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the amount of the Commitment of such Lender at such time and the denominator of
which is the amount of the Aggregate Commitments at such time; provided
that if the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02,
then the Pro Rata Share of each Lender shall be determined based on the Pro
Rata Share of such Lender immediately prior to such termination and after
giving effect to any subsequent assignments made pursuant to the terms
hereof.  The initial Pro Rata Share of
each Lender is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

 

“PUC” means any
state or local regulatory agency or governmental authority that exercises
jurisdiction over the rates, services, ownership, capital structure, authority
to borrow, operation or

 

11

 

production of electricity, oil, gas or hydrocarbons,
or over Persons who own, construct, or operate facilities or systems that
produce, transport, process, or market electricity, oil, gas, or hydrocarbons.

 

“Register” has the
meaning set forth in Section 10.07(c).

 

“Request for Credit
Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice and (b) with respect
to an L/C Credit Extension, a Letter of Credit Application.

 

“Required Lenders”
means, as of any date of determination, Lenders having at least 51% of the
Aggregate Commitments or, if the commitment of each Lender to make Loans and
the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Section 8.02, Lenders holding in the
aggregate at least 51% of the Total Outstandings (with the aggregate amount of
each Lender’s risk participation and funded participation in L/C Obligations
being deemed “held” by such Lender for purposes of this definition).

 

“Responsible Officer”
means the chairman, chief executive officer, president, executive vice
president, chief financial officer, treasurer or assistant treasurer of the
Borrower.  Any document delivered
hereunder that is signed by a Responsible Officer of the Borrower shall be
conclusively presumed to have been authorized by all necessary corporate,
partnership and/or other action on the part of the Borrower and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
the Borrower.

 

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

 

“SEC” means the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any of its principal functions.

 

“Shareholders’ Equity”
means, as of any date of determination, consolidated shareholders’ equity of
the Borrower and its Subsidiaries as of that date determined in accordance with
GAAP.

 

“SPC” has the
meaning specified in Section 10.07(h).

 

“Stated Maturity Date”
means October 28, 2004; provided, however, if prior to such
date the Borrower meets the conditions set forth in Section 2.13,
the Stated Maturity Date shall be October 30, 2006.

 

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having such
power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person.  Unless otherwise specified, all
references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a
Subsidiary or Subsidiaries of the Borrower.

 

“Swap Contract”
means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the

 

12

 

foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

“Synthetic Lease
Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) 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 the indebtedness of such Person
(without regard to accounting treatment).

 

“Total Capital”
means, at any date, the sum of (i) Consolidated Debt plus (ii)
Shareholders’ Equity (including for this purpose any amount attributable to
stock which is required to be redeemed or is redeemable at the option of the
holder, if certain events or conditions occur or exist or otherwise), in each
case determined at such date less (iii) to the extent reflected in Shareholders’
Equity, any excess of the net book value of assets subject to Liens securing
Non-Recourse Debt (including the total assets of Excluded Subsidiaries) over
the amount of the related Non-Recourse Debt.

 

“Total Outstandings”
means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

 

“Type” means, with
respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 

“Unfunded
Liabilities” means, with respect to any Plan at any time, the amount (if
any) by which (i) the value of all benefit liabilities under such Plan,
determined on a plan termination basis using the assumptions prescribed by the
PBGC for purposes of Section 4044
of ERISA, exceeds (ii) the fair market value of all Plan assets allocable
to such liabilities under Title IV of ERISA (excluding any accrued but
unpaid contributions), all determined as of the then most recent valuation date
for such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under
Title IV of ERISA.

 

“United States”
and “U.S.” mean the United States of America.

 

“Unreimbursed Amount”
has the meaning set forth in Section 2.03(c)(i).

 

1.02        Other
Interpretive Provisions.  With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

 

(a)           The meanings of defined
terms are equally applicable to the singular and plural forms of the defined
terms.

 

(b)           (i)            The words “herein,” “hereto,”
“hereof” and “hereunder” and words of similar import when used in
any Loan Document shall refer to such Loan Document as a whole and not to any
particular provision thereof.

 

(ii)           Article, Section,
Exhibit and Schedule references are to the Loan Document in which such
reference appears.

 

(iii)          The term “including”
is by way of example and not limitation.

 

13

 

(iv)          The term “documents”
includes any and all instruments, documents, agreements, certificates, notices,
reports, financial statements and other writings, however evidenced, whether in
physical or electronic form.

 

(c)           In the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including”; the words “to” and “until”
each mean “to but excluding”; and the word “through” means “to
and including.”

 

(d)           Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

1.03        Accounting
Terms.  (a)  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed
herein.

 

(b)           If at any time any
change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Borrower
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

1.04        Rounding.  Any financial ratios required to be maintained
by the Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if
there is no nearest number).

 

1.05        References to Agreements and Laws.  Unless otherwise expressly provided herein,
(a) references to Organization Documents, agreements (including the Loan Documents)
and other contractual instruments shall be deemed to include all subsequent
amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions,
supplements and other modifications are not prohibited by any Loan Document;
and (b) references to any Law shall include all statutory and regulatory
provisions consolidating, amending, replacing, supplementing or interpreting
such Law.

 

1.06        Times
of Day.  Unless otherwise specified,
all references herein to times of day shall be references to Eastern time
(daylight or standard, as applicable).

 

1.07        Letter
of Credit Amounts.  Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter
of Credit or the Letter of Credit Application therefor, whether or not such
maximum face amount is in effect at such time.

 

14

 

ARTICLE II.

THE COMMITMENTS AND BORROWINGS

 

2.01        Loans.  Subject to the terms and conditions set
forth herein, each Lender severally agrees to make loans (each such loan, a “Loan”)
to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Lender’s Commitment; provided, however, that after giving
effect to any Borrowing, (i) the Total Outstandings shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Loans
of any Lender, plus such Lender’s Pro Rata Share of the Outstanding
Amount of all L/C Obligations, shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.04,
and reborrow under this Section 2.01.  Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
provided herein.

 

2.02        Borrowings,
Conversions and Continuations of Loans.

 

(a)           Each Borrowing, each
conversion of Loans from one Type to the other, and each continuation of
Eurodollar Rate Loans shall be made upon the Borrower’s delivery to the
Administrative Agent of an irrevocable written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower, which may be
delivered via facsimile.  Each such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or of any conversion of
Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any
Borrowing of Base Rate Loans.  Each
Borrowing of, conversion or continuation of Loans shall be in a principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Each Loan Notice shall specify (i) whether
the Borrower is requesting a Borrowing, a conversion of Loans from one Type to
the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
of the Borrowing, conversion or continuation, as the case may be (which shall
be a Business Day), (iii) the principal amount of Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto. 
If the Borrower fails to specify a Type of Loan in a Loan Notice or if
the Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Loans shall be made as, or converted to, Base
Rate Loans.  Any such automatic conversion
to Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Loan
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

 

(b)           Following receipt of a
Loan Notice, the Administrative Agent shall promptly notify each Lender of the
amount of its Pro Rata Share of the applicable Loans, and if no timely notice
of a conversion or continuation is provided by the Borrower, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans described in the preceding subsection.  Each Lender shall make the amount of its
Loan available to the Administrative Agent in immediately available funds at
the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day
specified in the applicable Loan Notice. 
Upon satisfaction of the applicable conditions set forth in Section 4.02
(and, if such Borrowing is the initial Credit Extension, Section 4.01),
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower; provided, however, that if, on the date
the Loan Notice with respect to such Borrowing is given by the Borrower, there
are L/C Borrowings outstanding, then the proceeds of such Borrowing shall be
applied, first, to the payment in full of any such L/C Borrowings and second,
to the Borrower as provided above.

 

15

 

(c)           Except as otherwise
provided herein, a Eurodollar Rate Loan may be continued or converted only on
the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

 

(d)           The Administrative
Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination
of such interest rate.  The
determination of the Eurodollar Rate by the Administrative Agent shall be
conclusive in the absence of manifest error. 
At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrower and the Lenders of any change in Bank of
America’s prime rate used in determining the Base Rate promptly following the
public announcement of such change.

 

(e)           After giving effect to
all Borrowings, all conversions of Loans from one Type to the other, and all
continuations of Loans as the same Type, there shall not be more than five
Interest Periods in effect with respect to Loans.

 

2.03        Letters
of Credit.

 

(a)           The Letter of Credit
Commitment.

 

(i)            Subject to the terms
and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon
the agreements of the other Lenders set forth in this Section 2.03, (1)
from time to time on any Business Day during the period from the Closing Date
until the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower, and to amend or renew Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor
drafts under the Letters of Credit; and (B) the Lenders severally agree to
participate in Letters of Credit issued for the account of the Borrower; provided
that the L/C Issuer shall not be obligated to make any L/C Credit Extension
with respect to any Letter of Credit, and no Lender shall be obligated to
participate in any Letter of Credit if as of the date of such L/C Credit
Extension, (x) the Total Outstandings would exceed the Aggregate Commitments,
(y) the aggregate Outstanding Amount of the Loans of any Lender, plus
such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations,
would exceed such Lender’s Commitment, or (z) the Outstanding Amount of the L/C
Obligations would exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.

 

(ii)           The L/C Issuer shall be
under no obligation to issue any Letter of Credit if:

 

(A)          any order, judgment or
decree of any Governmental Authority or arbitrator shall by its terms purport
to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any
Law applicable to the L/C Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of Letters of Credit generally or such Letter of Credit in particular
or shall impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems
material to it;

 

16

 

(B)           subject to
Section 2.03(b)(iii), the expiry date of such requested Letter of Credit
would occur more than twelve months after the date of issuance or last renewal,
unless the Required Lenders have approved such expiry date;

 

(C)           the expiry date of such
requested Letter of Credit would occur after the Letter of Credit Expiration
Date, unless all the Lenders have approved such expiry date;

 

(D)          the issuance of such Letter
of Credit would violate one or more policies of the L/C Issuer; or

 

(E)           such Letter of Credit
is (1) in an initial amount less than $500,000, (2) is to be denominated in a
currency other than Dollars, or (3) is to be issued for a purpose other than to
support surety bonds (including appeal bonds), worker’s compensation
requirements and other general corporate purposes.

 

(iii)          The L/C Issuer shall not
amend any Letter of Credit if (A) the L/C Issuer would have no obligation at
such time to issue such Letter of Credit in its amended form under any of
Sections 2.03(a)(ii)(B), (C) or (E)(2) or (3), or (B) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

 

(b)           Procedures for
Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of Credit.

 

(i)            Each Letter of Credit
shall be issued or amended, as the case may be, upon the request of the
Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent)
in the form of a Letter of Credit Application, appropriately completed and
signed by a Responsible Officer of the Borrower.  Such Letter of Credit Application must be received by the L/C
Issuer and the Administrative Agent not later than 11:00 a.m. at least two
Business Days (or such later date and time as the L/C Issuer may agree in a
particular instance in its sole discretion) prior to the proposed issuance date
or date of amendment, as the case may be. 
In the case of a request for an initial issuance of a Letter of Credit,
such Letter of Credit Application shall specify in form and detail satisfactory
to the L/C Issuer: (A) the proposed issuance date of the requested Letter of
Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry
date thereof; (D) the name and address of the beneficiary thereof; (E) the
documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such
beneficiary in case of any drawing thereunder; and (G) such other matters as
the L/C Issuer may require.  In the case
of a request for an amendment of any outstanding Letter of Credit, such Letter
of Credit Application shall specify in form and detail satisfactory to the L/C
Issuer (A) the Letter of Credit to be amended; (B) the proposed date of
amendment thereof (which shall be a Business Day); (C) the nature of the
proposed amendment; and (D) such other matters as the L/C Issuer may require.

 

(ii)           Promptly after receipt
of any Letter of Credit Application, the L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has received a copy of such Letter of Credit Application from the Borrower and,
if not, the L/C Issuer will provide the Administrative Agent with a copy thereof.  Upon receipt by the L/C Issuer of
confirmation from the Administrative Agent that the requested issuance or
amendment is permitted in accordance with the terms hereof, then, subject to
the terms and conditions hereof, the L/C Issuer shall, on the requested date,
issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the
L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the L/C Issuer a risk participation in such Letter of

 

17

 

Credit in an
amount equal to the product of such Lender’s Pro Rata Share times the amount of
such Letter of Credit.

 

(iii)          If the Borrower so
requests in any applicable Letter of Credit Application, the L/C Issuer may, in
its sole and absolute discretion, agree to issue a Letter of Credit that has
automatic renewal provisions (each, an “Auto-Renewal Letter of Credit”);
provided that any such Auto-Renewal Letter of Credit must permit the L/C
Issuer to prevent any such renewal at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day (the “Nonrenewal
Notice Date”) in each such twelve-month period to be agreed upon at the
time such Letter of Credit is issued. 
Unless otherwise directed by the L/C Issuer, the Borrower shall not be
required to make a specific request to the L/C Issuer for any such
renewal.  Once an Auto-Renewal Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but may
not require) the L/C Issuer to permit the renewal of such Letter of Credit at
any time to an expiry date not later than the Letter of Credit Expiration Date;
provided, however, that the L/C Issuer shall not permit any such
renewal if (A) the L/C Issuer has determined that it would have no obligation
at such time to issue such Letter of Credit in its renewed form under the terms
hereof (by reason of the provisions of Section 2.03(a)(ii) or
otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is two Business Days before the Nonrenewal
Notice Date (1) from the Administrative Agent that the Required Lenders have
elected not to permit such renewal or (2) from the Administrative Agent, any
Lender or the Borrower that one or more of the applicable conditions specified
in Section 4.02 is not then satisfied.

 

(iv)          Promptly after its
delivery of any Letter of Credit or any amendment to a Letter of Credit to an
advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true
and complete copy of such Letter of Credit or amendment.  The Administrative Agent shall give the
Lenders notice of the issuance of any Letter of Credit and any amendment
thereto.

 

(c)           Drawings and
Reimbursements; Funding of Participations.

 

(i)            Upon receipt from the
beneficiary of any Letter of Credit of any notice of a drawing under such
Letter of Credit, the L/C Issuer shall notify the Borrower and the Administrative
Agent thereof.  Not later than 11:00
a.m. on the date of any payment by the L/C Issuer under a Letter of Credit
(each such date, an “Honor Date”), the Borrower shall reimburse the L/C
Issuer through the Administrative Agent in an amount equal to the amount of
such drawing.  If the Borrower fails to
so reimburse the L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Pro
Rata Share thereof.  In such event, the
Borrower shall be deemed to have requested a Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without
regard to the minimum and multiples specified in Section 2.02 for
the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Loan Notice).  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be
given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)           Each Lender (including
the Lender acting as L/C Issuer) shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the L/C
Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.03(c)(iii), each

 

18

 

Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the L/C Issuer.

 

(iii)          With respect to any Unreimbursed
Amount that is not fully refinanced by a Borrowing of Base Rate Loans because
the conditions set forth in Section 4.02 cannot be satisfied or for
any other reason, the Borrower shall be deemed to have incurred from the L/C
Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together
with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii)
shall be deemed payment in respect of its participation in such L/C Borrowing
and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

 

(iv)          Until each Lender funds
its Loan or L/C Advance pursuant to this Section 2.03(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

 

(v)           Each Lender’s
obligation to make Loans or L/C Advances to reimburse the L/C Issuer for
amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense or
other right which such Lender may have against the L/C Issuer, the Borrower or
any other Person for any reason whatsoever; (B) the occurrence or continuance
of a Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Loan Notice). 
No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Borrower to reimburse the L/C Issuer for the amount of any
payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein.

 

(vi)          If any Lender fails to
make available to the Administrative Agent for the account of the L/C Issuer
any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),
the L/C Issuer shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
Federal Funds Rate from time to time in effect.  A certificate of the L/C Issuer submitted to any Lender (through
the Administrative Agent) with respect to any amounts owing under this clause
(vi) shall be conclusive absent manifest error.

 

(d)           Repayment of
Participations.

 

(i)            At any time after the
L/C Issuer has made a payment under any Letter of Credit and has received from
any Lender such Lender’s L/C Advance in respect of such payment in accordance
with Section 2.03(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed
Amount or interest thereon (whether directly from the Borrower or otherwise,
including proceeds of Cash Collateral (as defined in Section 2.03(g))
applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Pro Rata Share thereof (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which
such Lender’s L/C Advance was outstanding) in the same funds as those received
by the Administrative Agent.

 

19

 

(ii)           If any payment received
by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(i)
is required to be returned under any of the circumstances described in Section 10.06
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Lender shall pay to the Administrative Agent for the account
of the L/C Issuer its Pro Rata Share thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect.

 

(e)           Obligations Absolute.  The obligation of the Borrower to reimburse
the L/C Issuer for each drawing under each Letter of Credit and to repay each
L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be
paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

(i)            any lack of validity
or enforceability of such Letter of Credit, this Agreement, or any other
agreement or instrument relating thereto;

 

(ii)           the existence of any
claim, counterclaim, set-off, defense or other right that the Borrower may have
at any time against any beneficiary or any transferee of such Letter of Credit
(or any Person for whom any such beneficiary or any such transferee may be
acting), the L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or
any agreement or instrument relating thereto, or any unrelated transaction;

 

(iii)          any draft, demand,
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; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

 

(iv)          any payment by the L/C
Issuer under such Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to
any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under
any Debtor Relief Law; or

 

(v)           any other circumstance
or happening whatsoever, whether or not similar to any of the foregoing,
including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower.

 

The Borrower shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with
the Borrower’s instructions or other irregularity, the Borrower will
immediately notify the L/C Issuer.  The
Borrower shall be conclusively deemed to have waived any such claim against the
L/C Issuer and its correspondents unless such notice is given as aforesaid.

 

(f)            Role of L/C Issuer.  Each Lender and the Borrower agree that, in
paying any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  None of the L/C Issuer, any Agent-Related Person, nor any of the
respective correspondents, participants or assignees of the L/C Issuer shall be
liable to any Lender for (i) any action taken or omitted in connection herewith
at the request or with the approval of the Lenders or

 

20

 

the Required Lenders, as applicable; (ii) any action
taken or omitted in the absence of gross negligence or willful misconduct; or
(iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Letter of Credit
Application.  The Borrower hereby
assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement.  None of the L/C Issuer, any Agent-Related Person, any Lender, nor
any of the respective correspondents, participants or assignees of the L/C
Issuer, shall be liable or responsible to the Borrower for any of the matters
described in clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct,
as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or
gross negligence or the L/C Issuer’s willful failure to pay under any Letter of
Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of
Credit.  In furtherance and not in
limitation of the foregoing, the L/C Issuer may accept documents that appear on
their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument transferring
or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which
may prove to be invalid or ineffective for any reason.

 

(g)           Cash Collateral.  Upon the request of the Administrative
Agent, (i) if the L/C Issuer has honored any full or partial drawing request
under any Letter of Credit and such drawing has resulted in an L/C Borrowing,
or (ii) if, as of the Letter of Credit Expiration Date, any Letter of Credit may
for any reason remain outstanding and partially or wholly undrawn, the Borrower
shall immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount determined as of the
date of such L/C Borrowing or the Letter of Credit Expiration Date, as the case
may be).  For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance satisfactory to the Administrative Agent
and the L/C Issuer (which documents are hereby consented to by the
Lenders).  Derivatives of such term have
corresponding meanings.  The Borrower
hereby grants to the Administrative Agent, for the benefit of the L/C Issuer
and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing.  Cash collateral shall be maintained in blocked, non-interest
bearing deposit accounts at Bank of America.

 

(h)           Applicability of
ISP98 and UCP.  Unless otherwise
expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is
issued, the rules of the “International Standby Practices 1998” published by
the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance) shall apply to
each standby Letter of Credit.

 

(i)            Letter of Credit
Fees.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share a Letter of Credit fee for each standby Letter of Credit equal to
the Applicable Rate times the daily maximum amount available to be drawn under
such Letter of Credit (whether or not such maximum amount is then in effect
under such Letter of Credit).  Such
Letter of Credit fees shall be computed on a quarterly basis in arrears.  Such Letter of Credit fees shall be due and
payable on the first Business Day after the end of each March, June,
September and December, commencing with the first such date to occur after
the issuance of such Letter of Credit, on the Letter of Credit Expiration Date
and thereafter on demand.  If there is
any change in the Applicable Rate during any quarter, the daily maximum amount
of each Letter of Credit shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate
was in effect.

 

21

 

(j)            Fronting Fee and
Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each Letter of Credit
in the amounts and at the times specified in the Fee Letter.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to Letters of Credit as from time to time in
effect.  Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

 

(k)           Conflict with Letter
of Credit Application.  In the event
of any conflict between the terms hereof and the terms of any Letter of Credit
Application, the terms hereof shall control.

 

2.04        Prepayments.

 

(a)           The Borrower may, upon
notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not later
than 11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans;
(ii) any prepayment of Eurodollar Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof, and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify each Lender of its
receipt of each such notice, and of the amount of such Lender’s Pro Rata Share
of such prepayment.  If such notice is
given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest thereon, together with
any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares.

 

(b)           If for any reason the
Total Outstandings at any time exceed the Aggregate Commitments then in effect,
the Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however,
that the Borrower shall not be required to Cash Collateralize the L/C
Obligations pursuant to this Section 2.04(b) unless after the
prepayment in full of the Loans, the Total Outstandings exceed the Aggregate
Commitments then in effect.

 

2.05        Termination or Reduction of Commitments.  The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 11:00 a.m.
three Business Days prior to the date of termination or reduction, (ii) any
such partial reduction shall be in an aggregate amount of $10,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would
exceed the Aggregate Commitments, and (iv) if, after giving effect to any
reduction of the Aggregate Commitments, the Letter of Credit Sublimit exceeds
the amount of the Aggregate Commitments, such Letter of Credit Sublimit shall
be automatically reduced by the amount of such excess.  The Administrative Agent will promptly
notify the Lenders of any such notice of termination or reduction of the
Aggregate Commitments.  Any reduction of
the Aggregate Commitments shall be applied to the Commitment of each Lender
according to its Pro Rata Share.  All
facility and utilization fees accrued until the effective date of any
termination of the Aggregate Commitments shall be paid on the effective date of
such termination.

 

22

 

2.06        Repayment
of Loans.

 

The Borrower shall repay
to the Lenders on the Maturity Date the aggregate principal amount of Loans
outstanding on such date.

 

2.07        Interest.

 

(a)           Subject to the
provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest
Period at a rate per annum equal to the Eurodollar Rate for such Interest
Period plus the Applicable Rate; and (ii) each Base Rate Loan shall bear
interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.

 

(b)           If any amount payable
by the Borrower under any Loan Document is not paid when due (without regard to
any applicable grace periods), whether at stated maturity, by acceleration or
otherwise, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws. 
Furthermore, while any Event of Default exists, the Borrower shall pay
interest on the principal amount of all outstanding Obligations hereunder at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest on each Loan
shall be due and payable in arrears on each Interest Payment Date applicable
thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

 

2.08        Fees.

 

(a)           Facility Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
facility fee equal to the Applicable Rate times the actual daily amount
of the Aggregate Commitments (or, if the Aggregate Commitments have terminated,
on the Outstanding Amount of all Loans and L/C Obligations), regardless of
usage.  The facility fee shall accrue at
all times during the Availability Period (and thereafter so long as any Loans
or L/C Obligations remain outstanding), including at any time during which one
or more of the conditions in Article IV is not met, and shall be
due and payable quarterly in arrears on the last Business Day of each March,
June, September and December, commencing with the first such date to occur
after the Closing Date, and on the Maturity Date (and, if applicable,
thereafter on demand).  The facility fee
shall be calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.

 

(b)           Utilization Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
utilization fee equal to the Applicable Rate times the Total
Outstandings on each day that the Total Outstandings exceed 33% of the actual
daily amount of the Aggregate Commitments. 
The utilization fee shall be due and payable quarterly in arrears on the
last Business Day of each March, June, September and December, commencing
with the first such date to occur after the Closing Date, and on the Maturity
Date.  The utilization fee shall be
calculated quarterly in arrears and if there is any change in the Applicable
Rate during any quarter, the daily amount shall be computed and multiplied by
the Applicable Rate for each period during which such Applicable Rate was in
effect.  The utilization fee shall accrue
at all times, including at any time during which one or more of the conditions
in Article IV is not met.

 

23

 

(c)           Other Fees.

 

(i)  The Borrower shall pay to
each Arranger and the Administrative Agent for their own respective accounts
fees in the amounts and at the times specified in the Fee Letters.  Such fees shall be fully earned when paid
and shall not be refundable for any reason whatsoever.

 

(ii)           The Borrower shall pay
to the Lenders such fees as shall have been separately agreed upon in writing
in the amounts and at the times so specified. 
Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever.

 

2.09        Computation of Interest and Fees.  All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” shall
be made on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed.  All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.11(a), bear interest for one day.

 

2.10        Evidence
of Debt.

 

(a)           The Credit Extensions
made by each Lender shall be evidenced by one or more accounts or records
maintained by such Lender and by the Administrative Agent in the ordinary
course of business.  The accounts or
records maintained by the Administrative Agent and each Lender shall be prima
facie evidence of the amount of the Credit Extensions made by the
Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable), amount
and maturity of its Loans and payments with respect thereto.

 

(b)           In addition to the
accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of
participations in Letters of Credit.  In
the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall
control in the absence of manifest error.

 

2.11        Payments
Generally.

 

(a)           All payments to be made
by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. 
Except as otherwise expressly provided herein, all payments by the
Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than
2:00 p.m. on the date specified herein. 
The Administrative Agent will promptly distribute to each Lender its Pro
Rata Share (or other applicable share as provided herein) of such payment in
like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.

 

24

 

(b)           If any payment to be
made by the Borrower shall come due on a day other than a Business Day, payment
shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

 

(c)           Unless the Borrower or
any Lender has notified the Administrative Agent, prior to the date any payment
is required to be made by it to the Administrative Agent hereunder, that the
Borrower or such Lender, as the case may be, will not make such payment, the
Administrative Agent may assume that the Borrower or such Lender, as the case
may be, has timely made such payment and may (but shall not be so required to),
in reliance thereon, make available a corresponding amount to the Person entitled
thereto.  If and to the extent that such
payment was not in fact made to the Administrative Agent in immediately
available funds, then:

 

(i)            if the Borrower failed
to make such payment, each Lender shall forthwith on demand repay to the
Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest
thereon in respect of each day from and including the date such amount was made
available by the Administrative Agent to such Lender to the date such amount is
repaid to the Administrative Agent in immediately available funds at the
Federal Funds Rate from time to time in effect; and

 

(ii)           if any Lender failed to
make such payment, such Lender shall forthwith on demand pay to the
Administrative Agent the amount thereof in immediately available funds,
together with interest thereon for the period from the date such amount was
made available by the Administrative Agent to the Borrower to the date such
amount is recovered by the Administrative Agent (the “Compensation Period”)
at a rate per annum equal to the Federal Funds Rate from time to time in
effect. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in the applicable
Borrowing.  If such Lender does not pay
such amount forthwith upon the Administrative Agent’s demand therefor, the
Administrative Agent may make a demand therefor upon the Borrower, and the
Borrower shall pay such amount to the Administrative Agent, together with
interest thereon for the Compensation Period at a rate per annum equal to the
rate of interest applicable to the applicable Borrowing.  Nothing herein shall be deemed to relieve
any Lender from its obligation to fulfill its Commitment or to prejudice any
rights which the Administrative Agent or the Borrower may have against any
Lender as a result of any default by such Lender hereunder.

 

A notice of the
Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (c) shall be conclusive, absent manifest
error.

 

(d)           If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II,
and such funds are not made available to the Borrower by the Administrative
Agent because the conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

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

 

25

 

(f)            Nothing herein shall
be deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

 

2.12        Sharing
of Payments.  If, other than as
expressly provided elsewhere herein, any Lender shall obtain on account of the
Loans made by it, or the participations in L/C Obligations held by it, any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) in excess of its ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Lenders such
participations in the Loans made by them, and/or such subparticipations in the
participations in L/C Obligations held by them, as the case may be, as shall be
necessary to cause such purchasing Lender to share the excess payment in
respect of such Loans or such participations, as the case may be, pro rata with
each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender under
any of the circumstances described in Section 10.06 (including
pursuant to any settlement entered into by the purchasing Lender in its
discretion), such purchase shall to that extent be rescinded and each other
Lender shall repay to the purchasing Lender the purchase price paid therefor,
together with an amount equal to such paying Lender’s ratable share (according
to the proportion of (i) the amount of such paying Lender’s required repayment
to (ii) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of
the total amount so recovered, without further interest thereon.  The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.09) with respect to such
participation as fully as if such Lender were the direct creditor of the Borrower
in the amount of such participation. 
The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under
this Section and will in each case notify the Lenders following any such
purchases or repayments.  Each Lender
that purchases a participation pursuant to this Section shall from and
after such purchase have the right to give all notices, requests, demands,
directions and other communications under this Agreement with respect to the
portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased.

 

2.13        Extension of Stated Maturity Date.

 

Without
further action by or consent from the Lenders, the Stated Maturity Date shall
be extended to October 30, 2006 (or, if such date is not a Eurodollar
Business Day, the next preceding Eurodollar Business Day) if the following
requirements are satisfied:  on or
before September 30, 2004, the Borrower shall have provided to the
Administrative Agent the following, in form and substance satisfactory to the
Administrative Agent (a) a copy of the securities certificate registered
with the Pennsylvania Public Utility Commission (the “Securities Certificate”)
and of the order of the Pennsylvania Public Utility Commission approving the
Borrower’s incurring indebtedness hereunder with a maturity date of
October 30, 2006, (b) an opinion of counsel to the Borrower (which
may be internal counsel) stating that (i) the Securities Certificate has been
registered with the Pennsylvania Public Utility Commission in accordance with
Chapter 19 of the Pennsylvania Public Utility Code and by virtue of such
registration, authorizes the Borrower to incur indebtedness hereunder with a
maturity date of October 30, 2006, and (ii) no other Authorizations are
required by the Pennsylvania Public Utility Commission or by the PUC in any
other state identified by the Borrower as being a state in which the Borrower
is subject to regulation by a PUC and (c) copies of corporate resolutions
certified by the Secretary or Assistant Secretary of the Borrower, or such
other evidence as may be satisfactory to the Administrative Agent,
demonstrating that Borrower’s incurrence of indebtedness hereunder with a
maturity date of October 30, 2006 has been duly authorized by all
necessary corporate action, together with an opinion of counsel to the Borrower
(which may be internal counsel) to such effect.  The Administrative Agent shall promptly notify the Lenders when
the foregoing conditions have been satisfied, and the extension shall be
effective as of the date of such notice.

 

26

 

2.14        Increase in Commitments.

 

(a)           Provided there exists no Default, upon notice to the Administrative
Agent (which shall promptly notify the Lenders), the Borrower may on a one-time
basis, request an increase in the Aggregate Commitments by an amount not
exceeding $100,000,000.  At the time of
sending such notice, the Borrower (in consultation with the Administrative
Agent) shall specify the time period within which each Lender is requested to
respond (which shall in no event be less than ten Business Days from the date
of delivery of such notice to the Lenders). 
Each Lender shall notify the Administrative Agent within such time
period whether or not it agrees to increase its Commitment and, if so, whether
by an amount equal to, greater than, or less than its Pro Rata Share of such
requested increase.  Any Lender not
responding within such time period shall be deemed to have declined to increase
its Commitment.  The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to
each request made hereunder.  To achieve
the full amount of a requested increase, the Borrower may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement
in form and substance satisfactory to the Administrative Agent and its counsel.

 

(b)           If the Aggregate Commitments are increased in accordance with this
Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation
of such increase.  The Administrative
Agent shall promptly notify the Borrower and the Lenders of the final
allocation of such increase and the Increase Effective Date.  As a condition precedent to such increase,
the Borrower shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Increase Effective Date (in sufficient copies for
each Lender) signed by a Responsible Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase, and (ii) in the case of the Borrower, certifying
that, before and after giving effect to such increase, (A) the representations
and warranties contained in Article V and the other Loan Documents
are true and correct on and as of the Extension Effective Date, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of this Section 2.14, the
representations and warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 6.01, and (B) no
Default exists.  The Borrower shall
prepay any Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Commitments under this
Section.

 

(c)           This Section shall supersede any provisions in Sections 2.11
or 10.01 to the contrary.

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Any and all payments by
the Borrower to or for the account of the Administrative Agent or any Lender
under any Loan Document shall be made free and clear of and without deduction
for any and all present or future taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings or similar charges, and all liabilities with
respect thereto, excluding, in the case of the Administrative Agent and
each Lender, taxes imposed on or measured by its overall net income, and
franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the Laws of which the
Administrative Agent or such Lender, as the case may be, is organized or
maintains a lending office (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by any
Laws to deduct any Taxes from or in respect of any sum payable under any Loan
Document to the

 

27

 

Administrative Agent or any Lender, (i) 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), each of the Administrative Agent and such Lender receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions, (iii) the Borrower shall
pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable Laws, and (iv) within 30 days after the
date of such payment, the Borrower shall furnish to the Administrative Agent
(which shall forward the same to such Lender) the original or a certified copy
of a receipt evidencing payment thereof.

 

(b)           In addition, the
Borrower agrees to pay any and all present or future stamp, court or
documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Loan Document or from the
execution, delivery, performance, enforcement or registration of, or otherwise
with respect to, any Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)           If the Borrower shall
be required to deduct or pay any Taxes or Other Taxes from or in respect of any
sum payable under any Loan Document to the Administrative Agent or any Lender,
the Borrower shall also pay to the Administrative Agent or to such Lender, as
the case may be, at the time interest is paid, such additional amount that the
Administrative Agent or such Lender specifies is necessary to preserve the
after-tax yield (after factoring in all taxes, including taxes imposed on or
measured by net income) that the Administrative Agent or such Lender would have
received if such Taxes or Other Taxes had not been imposed.

 

(d)           The Borrower agrees to
indemnify the Administrative Agent and each Lender for (i) the full amount of
Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted
by any jurisdiction on amounts payable under this Section) paid by the
Administrative Agent and such Lender, (ii) amounts payable under Section 3.01(c)
and (iii) any liability (including additions to tax, penalties, interest and
expenses) arising therefrom or with respect thereto, in each case whether or
not such Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. 
Payment under this subsection (d) shall be made within 30 days
after the date the Lender or the Administrative Agent makes a demand therefor.

 

3.02        Illegality.  If any Lender determines that any Law
has made it unlawful, or that any Governmental Authority has asserted that it
is unlawful, for any Lender or its applicable Lending Office to make, maintain
or fund Eurodollar Rate Loans, or to determine or charge interest rates based
upon the Eurodollar Rate, then, on notice thereof by such Lender to the
Borrower through the Administrative Agent, any obligation of such Lender to
make or continue Eurodollar Rate Loans or to convert Base Rate Loans to
Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. 
Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate
Loans.  Upon any such prepayment or
conversion, the Borrower shall also pay accrued interest on the amount so
prepaid or converted.  Each Lender
agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.

 

3.03        Inability to Determine Rates.  If the Required Lenders determine that
for any reason adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or that the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and
fairly reflect the

 

28

 

cost to such Lenders of funding such Loan, the
Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Borrowing of Base
Rate Loans in the amount specified therein.

 

3.04        Increased Cost and Reduced Return; Capital
Adequacy.

 

(a)           If any Lender
determines that as a result of the introduction of or any change in or in the
interpretation of any Law, or such Lender’s compliance therewith, there shall
be any increase in the cost to such Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or
participating in Letters of Credit, or a reduction in the amount received or
receivable by such Lender in connection with any of the foregoing (excluding
for purposes of this subsection (a) any such increased costs or reduction
in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements
contemplated by Section 3.04(c)), then from time to time upon
demand of such Lender (with a copy of such demand to the Administrative Agent),
the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender for such increased cost or reduction.

 

(b)           If any Lender
determines that the introduction of any Law regarding capital adequacy or any
change therein or in the interpretation thereof, or compliance by such Lender
(or its Lending Office) therewith, has the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such Lender
as a consequence of such Lender’s obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender’s
desired return on capital), then from time to time upon demand of such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall
pay to such Lender such additional amounts as will compensate such Lender for
such reduction.

 

(c)           The Borrower shall pay
to each Lender, as long as such Lender shall be required to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency
funds or deposits (currently known as “Eurocurrency liabilities”), additional
interest on the unpaid principal amount of each Eurodollar Rate Loan equal to
the actual costs of such reserves allocated to such Loan by such Lender (as
determined by such Lender in good faith, which determination shall be
conclusive), which shall be due and payable on each date on which interest is
payable on such Loan, provided the Borrower shall have received at least
15 days’ prior notice (with a copy to the Administrative Agent) of such
additional interest from such Lender. 
If a Lender fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional interest shall be due and payable 15 days from
receipt of such notice.  Each Lender
will promptly notify the Borrower and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section and will designate a
different Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the judgment of such Lender,
be otherwise disadvantageous to such Lender.

 

3.05        Funding
Losses.  Upon demand of any
Lender (with a copy to the Administrative Agent) from time to time, the
Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

 

29

 

(a)           any continuation,
conversion, payment or prepayment of any Loan other than a Base Rate Loan on a
day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)           any failure by the
Borrower (for a reason other than the failure of such Lender to make a Loan) to
prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the
date or in the amount notified by the Borrower; or

 

(c)           any assignment of a
Eurodollar Rate Loan on a day other than the last day of the Interest Period
therefor as a result of a request by the Borrower pursuant to Section 10.16;

 

including any loss or
expense arising from the liquidation or reemployment of funds obtained by it to
maintain such Loan (excluding loss of anticipated profits) or from fees payable
to terminate the deposits from which such funds were obtained.  The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

 

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section 3.05,
each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it
at the Eurodollar Rate for such Loan by a matching deposit or other borrowing
in the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.

 

3.06        Matters Applicable to all Requests for
Compensation.  A certificate of the
Administrative Agent or any Lender claiming compensation under this Article III
and setting forth the additional amount or amounts to be paid to it hereunder
shall be conclusive in the absence of manifest error.  In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods.

 

3.07        Survival.  All of the Borrower’s obligations under
this Article III shall survive termination of the Aggregate
Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV.

CONDITIONS PRECEDENT TO CLOSING DATE AND TO CREDIT EXTENSIONS

 

4.01        Conditions of Closing Date and Initial Credit
Extension.  The obligation of each
Lender to make its initial Credit Extension, hereunder is subject to
satisfaction of the following conditions precedent:

 

(a)           The Administrative
Agent’s receipt of the following, each of which shall be originals or
facsimiles (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the Borrower, each dated the
Closing Date (or, in the case of certificates of governmental officials, a
recent date before the Closing Date) and each in form and substance
satisfactory to the Administrative Agent and its legal counsel:

 

(i)            executed counterparts
of this Agreement, sufficient in number for distribution to the Administrative
Agent, each Lender and the Borrower;

 

(ii)           a Note executed by the
Borrower in favor of each Lender requesting a Note;

 

(iii)          such certificates of
resolutions or other action, incumbency certificates and/or other certificates
of a Responsible Officer of the Borrower as the Administrative Agent may
require evidencing the identity, authority and capacity of each Responsible
Officer thereof

 

30

 

authorized to act
as a Responsible Officer in connection with this Agreement and the other Loan
Documents to which the Borrower is a party;

 

(iv)          a certificate of the
Pennsylvania Secretary of State evidencing that the Borrower is duly organized
or formed, and is validly existing, in good standing under the laws of the
State of Pennsylvania;

 

(v)           a favorable opinion of
Reed Smith LLP, counsel to the Borrower, addressed to the Administrative Agent
and each Lender, as to the matters set forth in Exhibit E-1 and a
favorable opinion of the general counsel of the Borrower, addressed to the
Administrative Agent and each Lender, as to the matters set forth in Exhibit
E-2;

 

(vi)          a certificate signed by
a Responsible Officer of the Borrower certifying (A) that the representations
and warranties of the Borrower contained in Article V are true and correct
on and as of the date hereof, (B) that no Default exists or would result from
the execution of this Credit Agreement, (C) that there has been no material
adverse change since December 31, 2002 in the business, assets,
liabilities (actual or contingent), operations, or condition (financial or
otherwise) of the Borrower and its subsidiaries taken as a whole; and (D) the
current Debt Ratings;

 

(vii)         evidence that the
Commitments under (i) the Existing Credit Agreement and (ii) the Existing
364-Day Credit Agreement have been or concurrently with the Closing Date are
being terminated, and that the Borrower has repaid all amounts owed thereunder
upon such termination; and

 

(viii)        such other assurances,
certificates, documents, consents or opinions as the Administrative Agent, the
L/C Issuer or the Required Lenders reasonably may require.

 

(b)           Any fees required to be
paid on or before the Closing Date shall have been paid.

 

(c)           Unless waived by the
Administrative Agent, the Borrower shall have paid all Attorney Costs of the
Administrative Agent to the extent invoiced prior to or on the Closing Date.

 

4.02        Conditions to all Credit Extensions.  The obligation of each Lender to honor
any Request for Credit Extension (other than a Loan Notice requesting only a
conversion of Loans to the other Type, or a continuation of Eurodollar Rate
Loans) is subject to the following conditions precedent:

 

(a)           The representations and
warranties of the Borrower contained in Article V (except the
representations and warranties in Sections 5.04(c), 5.05 and 5.06,
as to any matter which has theretofore been disclosed in writing by the
Borrower to the Lenders by written notice given to the Administrative Agent) or
in any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and
correct on and as of the date of such Credit Extension.

 

(b)           No Default shall exist,
or would result from such proposed Credit Extension.

 

(c)           The Administrative
Agent and, if applicable, the L/C Issuer shall have received a Request for
Credit Extension in accordance with the requirements hereof.

 

Each Request for
Extension (other than a Loan Notice requesting only a conversion of Loans to
the other Type or a continuation of Eurodollar Rate Loans) submitted by the
Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

 

31

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents
and warrants that:

 

5.01        Corporate Existence and Power.  The Borrower is a corporation duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and has all corporate powers and all
material Authorizations required to carry on its business as now conducted.

 

5.02        Corporate and Governmental Authorization; No
Contravention.  The Borrower’s
incurrence of Debt hereunder, and the execution, delivery and performance by
the Borrower of this Agreement and the Notes, are within the corporate powers
of the Borrower, have been duly authorized by all necessary corporate action,
require no action by or in respect of, or filing with, any Governmental
Authority (except such as has been obtained), do not contravene, or constitute
a default under, any provision of applicable law or regulation or of the
certificate of incorporation or by-laws of the Borrower or of any agreement,
judgment, injunction, order, decree or other instrument binding upon the
Borrower or any of its Subsidiaries, or result in the creation or imposition of
any Lien on any asset of the Borrower or any of its Subsidiaries.

 

5.03        Binding
Effect.  This Agreement constitutes a valid and
binding agreement of the Borrower, and each Note, when executed and delivered
in accordance with this Agreement, will constitute a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms, except as such enforcement may be limited by bankruptcy, insolvency or
similar laws of general application relating to the enforcement of creditors’
rights.

 

5.04        Financial Information.

 

(a)           The consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of
December 31, 2002, and the related consolidated statements of income, cash
flows and changes in stockholders’ equity for the fiscal year then ended,
reported on by Ernst & Young LLP, independent certified public accountants
for the Borrower, and set forth in the Borrower’s 2002 Form 10-K, a copy of
which has been delivered to each of the Lenders, (i) fairly present, in
conformity with GAAP, the consolidated financial position of the Borrower and
its Consolidated Subsidiaries as of such date and their consolidated results of
operations and cash flows for such fiscal year, and (ii) show, to the extent
required by GAAP, all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Debt.

 

(b)           The unaudited
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of June 30, 2003, and the related unaudited consolidated statements of
income and cash flows for the three months then ended, set forth in the
Borrower’s Latest Form 10-Q, a copy of which has been delivered to each of the
Lenders, fairly present, in conformity with GAAP applied on a basis consistent
with the financial statements referred to in subsection (a) of this Section, the
consolidated financial position of the Borrower and its Consolidated Subsidiaries
as of such date and their consolidated results of operations and cash flows for
such three month period (subject to normal year-end adjustments).

 

(c)           Since December 31,
2002 there has been no material adverse change in the business, financial position
or results of operations of the Borrower and its Consolidated Subsidiaries,
considered as a whole.

 

5.05        Litigation. There is no action, suit, proceeding
or investigation pending against, or, to the knowledge of the Borrower,
threatened against or affecting, the Borrower or any of its Subsidiaries before
any Governmental Authority in which there is a reasonable possibility of an
adverse decision which could

 

32

 

materially adversely affect the business, consolidated
financial position or consolidated results of operations of the Borrower and
its Consolidated Subsidiaries, considered as a whole, or which in any manner
draws into question the validity or enforceability of this Agreement or the
Notes.

 

5.06        No
Default.  Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any contractual obligation
which could be reasonably expected to have a material adverse effect on the
business, financial condition, results of operations or prospects of the
Borrower and its Consolidated Subsidiaries, considered as a whole.

 

5.07        Compliance with ERISA.  Each
member of the ERISA Group has fulfilled its obligations under the minimum
funding standards of ERISA and the Internal Revenue Code with respect to each
Plan and is in compliance in all material respects with the presently
applicable provisions of ERISA and the Internal Revenue Code with respect to
each Plan.  No member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue
Code in respect of any Plan, (ii) failed to make any contribution or payment to
any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or
made any amendment to any Plan or Benefit Arrangement, which has resulted or
could result in the imposition of a Lien or the posting of a bond or other
security under ERISA or the Internal Revenue Code, or (iii) incurred any
liability under Title IV of ERISA other than a liability to the PBGC for premiums
under Section 4007 of ERISA.

 

5.08        Environmental Matters.  In the
ordinary course of its business, the Borrower conducts an ongoing review of the
effect of Environmental Laws on the business, operations and properties of the
Borrower and its Subsidiaries, in the course of which it identifies and
evaluates associated liabilities and costs (including, without limitation, any
capital or operating expenditures required for clean-up or closure of
properties presently or previously owned, any capital or operating expenditures
required to achieve or maintain compliance with environmental protection
standards imposed by law or as a condition of any license, permit or contract,
any related constraints on operating activities, including any periodic or
permanent shutdown of any facility or reduction in the level of or change in
the nature of operations conducted thereat, any costs or liabilities in
connection with off-site disposal of wastes or Hazardous Substances, and any
actual or potential liabilities to third parties, including employees, and any
related costs and expenses).  On the
basis of this review, the Borrower has concluded that such associated
liabilities and costs, including the costs of compliance with Environmental
Laws, are unlikely to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

5.09        Taxes.  The Borrower and its Subsidiaries have filed
all United States Federal income tax returns and all other material tax returns
which are required to be filed by them, and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by the Borrower or any
Subsidiary (other than those not yet delinquent and payable without premium or
penalty, and except for those being diligently contested in good faith by
appropriate proceedings, and in each case, for which adequate reserves and
provisions for taxes have been made on the books of the Borrower and each
Subsidiary).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

5.10        Subsidiaries. 
Each of the Borrower’s corporate Subsidiaries is a corporation duly
incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and has all corporate powers and all material
governmental authorizations required to carry on its business as now conducted,
except where the absence of any of the foregoing could not reasonably be
expected to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

33

 

5.11        Regulatory Restrictions on Borrowing;
Margin Regulations.

 

(a)           None of the Borrower,
any Person Controlling the Borrower, or any Subsidiary is an “investment company” within the meaning of
the Investment Company Act of 1940, as amended, or 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.

 

(b)           Margin stock does not
constitute more than 25% of the assets of the Borrower and its Subsidiaries.

 

5.12        Full
Disclosure.  No statement, information, report,
representation, or warranty made by the Borrower in any Loan Document or
furnished to the Administrative Agent or any Lender by or on behalf of the
Borrower in connection with any Loan Document contains any untrue statement of
a material fact or omits any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

5.13        Tax Shelter Regulations.  The Borrower does not intend to treat the Loans and/or Letters of
Credit 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. If the Borrower so notifies the Administrative Agent,
the Borrower acknowledges that one or more of the Lenders may treat its Loans
and/or Letters of Credit as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and such Lender or Lenders, as applicable,
will maintain the lists and other records required by such Treasury Regulation.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

The Borrower agrees that,
so long as any Lender has any Commitment hereunder, any Letter of Credit
remains outstanding or any amount payable hereunder remains unpaid:

 

6.01        Information. 
The Borrower will deliver to each of the Lenders:

 

(a)           as soon as available,
and in any event within 75 days after the end of the fiscal year of the
Borrower ending December 31, 2003, and 60 days after the end of each
fiscal year of the Borrower beginning December 31, 2004, if applicable, a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of the end of such fiscal year and the related consolidated statements of
income, cash flows and changes in stockholders’ equity for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP,
audited and accompanied by a report and opinion of an independent certified
public accountant of nationally recognized standing selected by the Borrower,
which report and opinion shall be prepared in accordance with generally
accepted auditing standards and shall not be subject to any “going concern” or
like qualification or exception or any qualification or exception as to the
scope of such audit;

 

(b)           as soon as available,
and in any event within 40 days (and 35 days after the end of each fiscal
quarter beginning March 31, 2005, if applicable) after the end of each of
the first three quarters of each fiscal year of the Borrower, a consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of the end
of such quarter and the related consolidated statements of income and cash
flows for such quarter and for the portion of the Borrower’s fiscal year ended
at the end of such quarter, setting forth in the case of such statements of
income and cash flows, in comparative form the figures for the corresponding
quarter and the corresponding portion of the Borrower’s previous fiscal year,
all

 

34

 

certified (subject to normal year-end adjustments) as
to fairness of presentation, conformity to GAAP and consistency by the chief
financial officer or the chief accounting officer of the Borrower;

 

(c)           simultaneously with the
delivery of each set of financial statements referred to in clauses (a) and (b) above, a
certificate of a Responsible Officer of the Borrower substantially in the form
of the Compliance Certificate attached hereto;

 

(d)           within five days after
any officer of the Borrower obtains actual knowledge of any Default, if such
Default is then continuing, a certificate of a Responsible Officer of the
Borrower setting forth the details thereof and the action which the Borrower is
taking or proposes to take with respect thereto;

 

(e)           promptly upon the
mailing thereof to the shareholders of the Borrower generally, copies of all
financial statements, reports and proxy statements so mailed;

 

(f)            promptly upon the
filing thereof, copies of all registration statements (other than the exhibits
thereto and any registration statements on Form S-8 or its equivalent) and
reports on Forms 10-K, 10-Q and 8-K (or their equivalents) which the Borrower
shall have filed with the Securities and Exchange Commission;

 

(g)           if and when any member
of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect
to any Plan which might constitute grounds for a termination of such Plan under
Title IV of ERISA, or knows that the plan administrator of any Plan has given
or is required to give notice of any such reportable event, a copy of the
notice of such reportable event given or required to be given to the PBGC; (ii)
receives notice of complete or partial withdrawal liability under Title IV of
ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent
or has been terminated, a copy of such notice; (iii) receives notice from the
PBGC under Title IV of ERISA of an intent to terminate, impose liability (other
than for premiums under Section 4007
of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of
such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue
Code, a copy of such application; (v) gives notice of intent to terminate any
Plan under Section 4041(c)
of ERISA, a copy of such notice and other information filed with the PBGC; (vi)
gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii)
fails to make any payment or contribution to any Plan or Multiemployer Plan or
in respect of any Benefit Arrangement or makes any amendment to any Plan or
Benefit Arrangement which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security, a certificate of the chief
financial officer or the chief accounting officer of the Borrower setting forth
details as to such occurrence and action, if any, which the Borrower or
applicable member of the ERISA Group is required or proposes to take;

 

(h)           Promptly after the
Borrower has notified the Administrative Agent of any intention by the Borrower
to treat the Loans and/or Letters of Credit as being a “reportable transaction”
(within the meaning of Treasury Regulation Section 1.6011-4), a duly
completed copy of IRS Form 8886 or any successor form; and

 

(i)            from time to time,
such additional information regarding the financial position or business of the
Borrower and its Subsidiaries as the Administrative Agent, at the request of
any Lender, may reasonably request.

 

Documents required to be
delivered pursuant to Section 6.01(a), (b) or (f) (to
the extent any such documents are included in materials otherwise filed with
the SEC) may be delivered electronically and if so delivered, shall be deemed
to have been delivered on the date (i) (A) on which the Borrower posts such
documents, or provides a link thereto on the Borrower’s website on the Internet
at the website address listed on Schedule 10.02; or (B) on which
such documents are posted on the Borrower’s behalf on

 

35

 

IntraLinks/IntraAgency or another relevant website, if
any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative
Agent), and (ii) on which the Borrower notifies (which may be by facsimile or
electronic mail) the Administrative Agent and each Lender of the posting of any
such documents; provided that the Borrower shall deliver paper copies or
soft copies (by electronic mail) of such documents to the Administrative Agent
or any Lender that requests the Borrower to deliver such paper copies or soft
copies until a written request to cease delivering paper copies or soft copies
is given by the Administrative Agent or such Lender.  Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance Certificates
required by Section 6.01(c) to the Administrative Agent and each of
the Lenders.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility 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.

 

6.02        Payment of Obligations.  The
Borrower will pay and discharge, and will cause each Subsidiary to pay and
discharge, at or before maturity, all their respective material obligations and
liabilities (including, without limitation, tax liabilities and claims of
materialmen, warehousemen and the like, which if unpaid might by law give rise
to a Lien), except where the same may be contested in good faith by appropriate
proceedings, and will maintain, and will cause each Subsidiary to maintain, in
accordance with generally accepted accounting principles, appropriate reserves
for the accrual of any of the same.

 

6.03        Maintenance of Property; Insurance.

 

(a)           The Borrower will keep,
and will cause each Subsidiary to keep, all material property useful and
necessary in its business in good working order and condition, ordinary wear
and tear excepted.

 

(b)           The Borrower will, and
will cause each of its Subsidiaries to, maintain (either in the name of the
Borrower or in such Subsidiary’s own name) with financially sound and
responsible insurance companies, insurance on all their respective properties
in at least such amounts, against at least such risks and with such risk
retention as are usually maintained, insured against or retained, as the case
may be, in the same general area by companies of established repute engaged in
the same or a similar business; and will furnish to the Lenders, upon request
from the Administrative Agent, information presented in reasonable detail as to
the insurance so carried.

 

6.04        Conduct
of Business and Maintenance of Existence.  The Borrower will preserve, renew and keep in full force and
effect, and will cause each Subsidiary to preserve, renew and keep in full
force and effect their respective legal existence and good standing under the
Laws of the jurisdiction of its organization and their respective rights,
privileges and franchises necessary or desirable in the normal conduct of
business; provided that nothing in this Section 6.04 shall prohibit (i)
the merger of a Subsidiary into the Borrower or the merger or consolidation of
a Subsidiary with or into another Person if the corporation surviving such
consolidation or merger is a domestic Subsidiary and if, in each case, after
giving effect thereto, no Default shall have occurred and be continuing, or
(ii) the termination of the corporate existence of any Subsidiary if the
Borrower in good faith determines that such termination is in the best interest
of the Borrower and is not materially disadvantageous to the Lenders.

 

6.05        Compliance with Laws.  The Borrower will comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

 

36

 

6.06        Inspection of
Property, Books and Records.  The Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to
its business and activities; and will permit, and will cause each Subsidiary to
permit, representatives of any Lender at such Lender’s expense to visit and
inspect any of their respective properties, to examine and make abstracts from
any of their respective books and records, and to discuss their respective affairs,
finances and accounts with their respective officers, employees and independent
public accountants, all at such reasonable times and as often as may reasonably
be desired.

 

6.07        Use of Proceeds.  The proceeds of the Loans made under this
Agreement will be used by the Borrower (i) for working capital, capital
expenditures and other lawful corporate purposes, and (ii) as support for the
Borrower’s commercial paper program.

 

6.08        Governmental
Approvals and Filings. 
The Borrower will, and will cause each Subsidiary to, keep and maintain
in full force and effect all action by or in respect of, or filing with, any
Governmental Authority necessary in connection with (a) the execution and
delivery of this Agreement, or any Note issued hereunder by the Borrower, (b)
the consummation by the Borrower of the transactions herein or therein
contemplated, (c) the performance of or compliance with the terms and
conditions hereof or thereof by the Borrower, or (d) any other actions required
to ensure the legality, validity, binding effect, enforceability or
admissibility in evidence hereof or thereof.

 

ARTICLE VII.

NEGATIVE COVENANTS

 

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding:

 

7.01        Liens.  Neither the Borrower nor any Subsidiary
shall, directly or indirectly, create, incur, assume or suffer to exist any
Lien on any asset now owned or hereafter acquired by it, except:

 

(a)           Liens existing on the
date of this Agreement securing Debt outstanding on the date of this Agreement
in an aggregate principal or face amount not exceeding $10,000,000;

 

(b)           any Lien existing on
any asset of any person at the time such person becomes a Subsidiary, and not
created in contemplation of such event;

 

(c)           any Lien on any asset
securing Debt incurred or assumed for the purpose of financing all or any part
of the cost of acquiring such asset, provided that such Lien attaches to such
asset concurrently with or within 90 days after completion of the acquisition
thereof;

 

(d)           (i) Liens on the assets
of NORESCO or on the assets of a Subsidiary of NORESCO attributable to a
NORESCO Project securing obligations of NORESCO or such Subsidiary with respect
to surety bonds and similar instruments obtained by NORESCO or such Subsidiary
with respect to such NORESCO Project; and (ii) Liens on assets of NORESCO
granted in financings which contemplate that assets will be transferred to the
financing entity in a transaction qualifying for sale treatment under Financial
Accounting Standards Board Statement No. 140, provided that the aggregate book
value of all assets subject to Liens described in this subclause (ii) shall at
no time exceed $150,000,000;

 

(e)           any Lien on any asset
of any person existing at the time such person is merged or consolidated with
or into the Borrower or a Subsidiary and not created in contemplation of such
event;

 

37

 

(f)            any Lien existing on
any asset prior to the acquisition thereof by the Borrower or a Subsidiary, and
not created in contemplation of such acquisition;

 

(g)           any Lien arising out of
the refinancing, extension, renewal or refunding of any Debt secured by any
Lien permitted by any of the foregoing clauses of this Section; provided that
such Debt is not increased and is not secured by any additional assets;

 

(h)           Liens arising in the
ordinary course of its business which (i) do not secure Debt or obligations in
respect of Swap Contracts, (ii) do not secure any obligation in an amount
exceeding $20,000,000 and (iii) do not in the aggregate materially detract from
the value of its assets or materially impair the use thereof in the operation
of its business;

 

(i)            (i)            Liens on cash and cash equivalents to
secure obligations arising under Swap Contracts which Liens (i) are granted by
and governed by standard International Swaps and Derivatives Association, Inc.
(“ISDA”) documentation, and (ii) secure Swap Contracts consisting of derivative
transactions contemplated to be settled in cash and not by physical delivery
and which are non-speculative in nature and are designed to minimize the risk
of fluctuations in oil and gas prices with respect to the Company’s operations
in the ordinary course of its business;

 

(j)            Liens on the oil and
gas properties, revenue therefrom, and other assets related to the ANPI
Transaction securing ANPI Obligations, as such Liens are described in
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders;

 

(k)           Production Payments and
Liens on the properties covered thereby to secure performance obligations in
connection therewith, provided that the aggregate principal amount of balance
sheet obligations in respect of Production Payments may at no time exceed
$500,000,000; and

 

(l)            Liens not otherwise
permitted by the foregoing clauses of this Section securing Debt in an
aggregate principal or face amount at any date not to exceed $100,000,000.

 

7.02        Debt to Total Capital. 
Consolidated Debt will at no time exceed 65% of Total Capital.

 

7.03        Transactions with Affiliates.  The Borrower will not, and
will not permit any Subsidiary to, directly or indirectly, pay any funds to or
for the account of, make any investment (whether by acquisition of stock or
indebtedness, by loan, advance, transfer of property, guarantee or other
agreement to pay, purchase or service, directly or indirectly, any Debt, or
otherwise) in, lease, sell, transfer or otherwise dispose of any assets,
tangible or intangible, to, or participate in, or effect, any transaction with,
any Affiliate, except on an arms-length basis on terms at least as favorable to
the Borrower or such Subsidiary than could have been obtained from a third
party who was not an Affiliate; provided
that the foregoing provisions of this Section shall not
prohibit any such Person from declaring or paying any lawful dividend or other
payment ratably in respect of all of its capital stock of the relevant class so
long as, after giving effect thereto, no Default shall have occurred and be
continuing.

 

7.04        Limitation of Other
Restrictions on Dividends by Subsidiaries, etc.  The
Borrower will not permit any Subsidiary to be or become subject to any
restriction of any nature (whether arising by operation of law, by agreement,
by its articles of incorporation, by-laws or other constituent documents of
such Subsidiary, or otherwise) on the right of such Subsidiary from time to
time to (w) declare and pay dividends or distributions with respect to
capital stock owned by the Borrower or any Subsidiary, (x) pay any
indebtedness, obligations or liabilities from time to time owed to the Borrower
or any Subsidiary, (y) make loans or advances to the Borrower or any
Subsidiary, or (z) transfer any of its properties or assets to the
Borrower or any Subsidiary, except:

 

38

 

(a)           legal restrictions of general applicability under the corporation law
under which such Subsidiary is incorporated, and fraudulent conveyance or
similar laws of general applicability for the benefit of creditors of such
Subsidiary generally;

 

(b)           with respect to clause (z)
above:  (i) non-assignment
provisions of any executory contract or of any lease by the Borrower or such
Subsidiary as lessee, and (ii) restrictions on transfer of property
subject to a Lien permitted by Section 7.01 for the benefit of the holder of such
Lien;

 

(c)           restrictions applicable solely to an Excluded Subsidiary.

 

7.05        Mergers
and Sales of Assets.  The
Borrower will not (i) consolidate or merge with or into any other Person or
(ii) sell, lease or otherwise transfer, directly or indirectly, all or
substantially all of the assets of the Borrower and its Subsidiaries, taken as
a whole, to any other Person; provided that
the Borrower may merge with another Person if (x) the Borrower is the
corporation surviving such merger and (y) after giving effect to such merger,
no Default shall have occurred and be continuing.

 

7.06        Change
in Nature of Business.  The
Borrower shall not, nor shall it permit any Subsidiary to, directly or
indirectly, engage in any material line of business substantially different
from those lines of business conducted by the Borrower and its Subsidiaries on
the date hereof or any business substantially related or incidental thereto.

 

7.07        Use
of Proceeds.  The Borrower shall
not use the proceeds of any Credit Extension, whether directly or indirectly,
for a purpose that entails a violation of Regulation U of the FRB.

 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

 

8.01        Events
of Default.  Any of the
following shall constitute an Event of Default:

 

(a)           Non-Payment.  The Borrower fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within five days after the same becomes due, any interest
on any Loan or on any L/C Obligation, or any facility, utilization or other fee
due hereunder, or any other amount payable hereunder or under any other Loan
Document; or

 

(b)           Specific Covenants.  The Borrower fails to perform or observe any
term, covenant or agreement contained in Article VI (other than
those contained in Sections 6.01 (other than 6.01(d)) through 6.06)
or Article VII; or

 

(c)           Other Defaults.  The Borrower fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

 

(d)           Representations and
Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
when made or deemed made; provided
that (except in the case of
any representation, warranty or certification made with respect to any
financial statement of the Borrower) if such lack of correctness is capable of
being remedied or cured within a 30-day period, Borrower shall have a period of
30 days after written notice thereof has been given to Borrower by
Administrative Agent (acting on the request of one or more Lenders) within
which to remedy or cure such lack of correctness; or

 

39

 

(e)           Cross-Payment
Default; Cross-Acceleration.  The
Borrower or any Subsidiary (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of any Material Financial Obligations, or (B) fails to observe or
perform any other agreement or condition relating to any Material Debt or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause the maturity of such Material Debt to be accelerated or to cause
such Material Debt to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or
redeem such Debt to be made, prior to its stated maturity; or

 

(f)            Insolvency
Proceedings, Etc.  The Borrower or
any Material Subsidiary institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any proceeding
under any Debtor Relief Law relating to any such Person or to all or any
material part of its property is instituted without the consent of such Person
and continues undismissed or unstayed for 60 calendar days, or an order for
relief is entered in any such proceeding; or

 

(g)           Inability to Pay
Debts; Attachment.  (i) The Borrower
or any Material Subsidiary admits in writing its inability or fails generally
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

 

(h)           Judgments.  There is entered against the Borrower or any
Subsidiary final judgments or orders for the payment of money in an aggregate
amount exceeding $50,000,000 (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), and
(A) enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

 

(i)            ERISA.  Any
member of the ERISA Group shall fail to pay when due an amount or amounts
aggregating in excess of $5,000,000 which it shall have become liable to pay
under Title IV of ERISA; or notice of intent to terminate a Material Plan shall
be filed under Title IV of ERISA by any member of the ERISA Group, any plan
administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate, to impose liability (other
than for premiums under Section 4007
of ERISA) in respect of, or to cause a trustee to be appointed to administer,
any Material Plan; or a condition shall exist by reason of which the PBGC would
be entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial withdrawal from, or a
default, within the meaning of Section 4219(c)(5)
of ERISA, with respect to, one or more Multiemployer Plans, which could cause
one or more members of the ERISA Group to incur a current payment obligation in
excess of $25,000,000 in the aggregate; or

 

(j)            Invalidity of Loan
Documents.  Any Loan Document (other
than the Fee Letters), at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or satisfaction in full of
all the Obligations, ceases to be in full force and effect; or the Borrower or
any other Person contests in any manner the validity or enforceability of any
Loan Document; or the Borrower denies that it has any or further liability or
obligation under any Loan Document, or purports to revoke, terminate or rescind
any Loan Document; or

 

(k)           Change of Control.  There occurs any Change of Control with
respect to the Borrower.

 

40

 

8.02        Remedies
Upon Event of Default.  If any
Event of Default occurs and is continuing, the Administrative Agent shall, at
the request of, or may, with the consent of, the Required Lenders, take any or
all of the following actions:

 

(a)           declare the commitment
of each Lender to make Loans and any obligations of the L/C Issuer to make L/C
Credit Extensions to be terminated, whereupon such commitments and obligation
shall be terminated;

 

(b)           declare the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder or under any other
Loan Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived
by the Borrower;

 

(c)           require that the
Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then
Outstanding Amount thereof); and

 

(d)           exercise on behalf of
itself and the Lenders all rights and remedies available to it and the Lenders
under the Loan Documents or applicable law;

 

provided,
however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans and any obligation
of the L/C Issuer to make L/C Credit Extensions shall automatically terminate,
the unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further
act of the Administrative Agent or any Lender.

 

8.03        Application of Funds.  After the exercise of remedies provided for in Section 8.02
(or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized
as set forth in the proviso to Section 8.02), any amounts received
on account of the Obligations shall be applied by the Administrative Agent in
the following order:

 

First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

 

Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Lenders
(including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

 

Third,
to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, ratably among the Lenders in proportion to the
respective amounts described in this clause Third payable to them;

 

Fourth,
to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, ratably among the Lenders in proportion to the
respective amounts described in this clause Fourth held by them;

 

Fifth,
to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; and

 

41

 

Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Borrower or as otherwise required by Law.

 

Subject to
Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn
amount of Letters of Credit pursuant to clause Fifth above shall be applied to
satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the
order set forth above.

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01        Appointment and Authorization of
Administrative Agent.

 

(a)           Each Lender hereby
irrevocably appoints, designates and authorizes the Administrative Agent to
take such action on its behalf under the provisions of this Agreement and each
other Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the
contrary contained elsewhere herein or in any other Loan Document, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, nor shall the Administrative Agent have or be
deemed to have any fiduciary relationship with any Lender or participant, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.  Without limiting the generality of the foregoing sentence, the
use of the term “agent” herein and in the other Loan Documents with reference
to the Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any
applicable Law.  Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting parties.

 

(b)           The L/C Issuer shall
act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith, and the L/C Issuer shall have all of
the benefits and immunities (i) provided to the Administrative Agent in this
Article IX with respect to any acts taken or omissions suffered by the L/C
Issuer in connection with Letters of Credit issued by it or proposed to be
issued by it and the applications and agreements for Letters of Credit
pertaining to such Letters of Credit as fully as if the term “Administrative
Agent” as used in this Article IX and in the definition of “Agent-Related
Person” included the L/C Issuer with respect to such acts or omissions, and
(ii) as additionally provided herein with respect to the L/C Issuer.

 

9.02        Delegation
of Duties.  The Administrative
Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact and shall be
entitled to advice of counsel and other consultants or experts concerning all
matters pertaining to such duties.  The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

 

9.03        Liability of Administrative Agent.  No Agent-Related Person shall (a) be
liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct
in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by the Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection with, this Agreement or any
other Loan Document, or the validity,

 

42

 

effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Loan Document, or for any failure of the
Borrower or any other party to any Loan Document to perform its obligations
hereunder or thereunder.  No
Agent-Related Person shall be under any obligation to any Lender or participant
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Borrower or any
Affiliate thereof.

 

9.04        Reliance
by Administrative Agent.

 

(a)           The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any writing, communication, signature, resolution, representation, notice,
consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, electronic mail message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent shall be fully justified in failing or
refusing to take any action under any Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
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.  The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or
consent of the Required Lenders (or such greater number of Lenders as may be
expressly required hereby in any instance) and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

(b)           For purposes of determining
compliance with the conditions specified in Section 4.01, each
Lender that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

 

9.05        Notice
of Default.  The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders, unless the Administrative Agent shall have received written notice
from a Lender or the Borrower referring to this Agreement, describing such
Default and stating that such notice is a “notice of default.”  The Administrative Agent will notify the
Lenders of its receipt of any such notice. 
The Administrative Agent shall take such action with respect to such
Default as may be directed by the Required Lenders in accordance with Article VIII;
provided, however, that unless and until the Administrative Agent
has received any such direction, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable or in the best interest of
the Lenders.

 

9.06        Credit
Decision; Disclosure of Information by Administrative Agent.  Each Lender acknowledges that no
Agent-Related Person has made any representation or warranty to it, and that no
act by the Administrative Agent hereafter taken, including any consent to and
acceptance of any assignment or review of the affairs of the Borrower or any
Affiliate thereof, shall be deemed to constitute any representation or warranty
by any Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their
possession.  Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower and their respective Subsidiaries, and all
applicable bank

 

43

 

or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower hereunder. 
Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the
Borrower.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent herein, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of the Borrower or any of its Affiliates which
may come into the possession of any Agent-Related Person.

 

9.07        Indemnification
of Administrative Agent.  Whether
or not the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand each Agent-Related Person (to the extent not reimbursed
by or on behalf of the Borrower and without limiting the obligation of the
Borrower to do so), pro rata, and hold harmless each Agent-Related Person from
and against any and all Indemnified Liabilities incurred by it; provided,
however, that no Lender shall be liable for the payment to any
Agent-Related Person of any portion of such Indemnified Liabilities to the
extent determined in a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from such Agent-Related Person’s own gross
negligence or willful misconduct; provided, however, that no
action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of
this Section.  Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney
Costs) incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by
or on behalf of the Borrower.  The
undertaking in this Section shall survive termination of the Aggregate
Commitments, the payment of all other Obligations and the resignation of the
Administrative Agent.

 

9.08        Administrative Agent in its Individual
Capacity.  Bank of America and its
Affiliates may make loans to, issue Letters of Credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of banking, trust, financial advisory, underwriting or other business with
the Borrower and its Affiliates as though Bank of America were not the
Administrative Agent or the L/C Issuer hereunder and without notice to or
consent of the Lenders.  The Lenders
acknowledge that, pursuant to such activities, Bank of America or its Affiliates
may receive information regarding the Borrower or its Affiliates (including
information that may be subject to confidentiality obligations in favor of the
Borrower or such Affiliate) and acknowledge that the Administrative Agent shall
be under no obligation to provide such information to them.  With respect to its Loans, Bank of America
shall have the same rights and powers under this Agreement as any other Lender
and may exercise such rights and powers as though it were not the
Administrative Agent or the L/C Issuer, and the terms “Lender” and “Lenders”
include Bank of America in its individual capacity.

 

9.09        Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders; provided that any
such resignation by Bank of America shall also constitute its resignation as
L/C Issuer.  If the Administrative Agent
resigns under this Agreement, the Required Lenders shall appoint from among the
Lenders a successor administrative agent for the Lenders, which successor
administrative agent shall be consented to by the Borrower at all times other
than during the existence of an Event of Default (which consent of the Borrower
shall not be unreasonably withheld or delayed).  If no successor administrative agent is appointed prior to the
effective

 

44

 

date of the resignation of the Administrative Agent,
the Administrative Agent may appoint, after consulting with the Lenders and the
Borrower, a successor administrative agent from among the Lenders.

 

Upon the acceptance of
its appointment as successor administrative agent hereunder, the Person acting
as such successor administrative agent shall succeed to all the rights, powers
and duties of the retiring Administrative Agent and L/C Issuer, and the
respective terms “Administrative Agent” and “L/C Issuer” shall mean such
successor administrative agent and Letter of Credit Issuer and the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent
shall be terminated and the retiring L/C Issuer’s rights, powers and duties as
such shall be terminated, without any other or further act or deed on the part
of such retiring L/C Issuer or any other Lender, other than the obligation of
the successor L/C Issuer to issue Letters of Credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or to
make other arrangements satisfactory to the retiring L/C Issuer to effectively
assume the obligations of the retiring L/C Issuer with respect to such Letters
of Credit.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article IX and Sections 10.04 and 10.05
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a successor
agent as provided for above.

 

9.10        Administrative 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
the Borrower, the Administrative Agent (irrespective of whether the principal
of any Loan or L/C Obligation 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 the 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
2.08 and 10.04) allowed in such judicial proceeding; 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 2.08 and 10.04.

 

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.

 

45

 

9.11        Other
Agents; Arrangers and Managers.  None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a
“syndication agent,” “documentation agent,” “co-agent,” “co-book manager,”
“lead manager,” “arranger” or “co-lead arranger” or shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such Lenders, those applicable to all Lenders as
such.  Without limiting the foregoing,
none of the Lenders or other Persons so identified shall have or be deemed to
have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not relied, and will not
rely, on any of the Lenders or other Persons so identified in deciding to enter
into this Agreement or in taking or not taking action hereunder.

 

ARTICLE X.

MISCELLANEOUS

 

10.01      Amendments,
Etc.  No amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent to any
departure by the Borrower therefrom, shall be effective unless in writing
signed by the Required Lenders and the Borrower, and acknowledged by the
Administrative Agent, and each such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

 

(a)           extend or increase the
Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(b)           postpone any date fixed
by this Agreement or any other Loan Document for any payment of principal,
interest, fees or other amounts due to the Lenders (or any of them) hereunder
or under any other Loan Document without the written consent of each Lender
directly affected thereby;

 

(c)           reduce the principal
of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or
(subject to clause (iv) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Required Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest at the Default Rate;

 

(d)           change Section 2.12
or Section 8.03 in a manner that would alter the pro rata sharing
of payments required thereby without the written consent of each Lender; or

 

(e)           change any provision of
this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to
amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder, without the written consent of each Lender;

 

and, provided  further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the L/C Issuer in addition to the Lenders required above, affect the rights or
duties of the L/C Issuer under this Agreement or any Letter of Credit
Application relating to any Letter of Credit issued or to be issued by it; (ii)
no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above, affect the
rights or duties of the Administrative Agent under this Agreement or any other
Loan Document; (iii) Section 10.07(h) may not be amended, waived or
otherwise modified without the consent of each Granting Lender all or any part
of whose Loans are being funded by an SPC at the time of such amendment, waiver
or other modification; and (iv) the Fee Letters may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties
thereto.

 

46

 

10.02      Notices
and Other Communications; Facsimile Copies.

 

(a)           General.  Unless otherwise expressly provided herein,
all notices and other communications provided for hereunder shall be in writing
(including by facsimile transmission). 
All such written notices shall be mailed, faxed or delivered to the
applicable address, facsimile number or (subject to subsection (c) below)
electronic mail address, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)            if to the Borrower,
the Administrative Agent or the L/C Issuer, to the address, facsimile number,
electronic mail address or telephone number specified for such Person on Schedule 10.02
or to such other address, facsimile number, electronic mail address or
telephone number as shall be designated by such party in a notice to the other
parties; and

 

(ii)           if to any other Lender,
to the address, facsimile number, electronic mail address or telephone number
specified in its Administrative Questionnaire or to such other address,
facsimile number, electronic mail address or telephone number as shall be
designated by such party in a notice to the Borrower, the Administrative Agent
and the L/C Issuer.

 

All such notices and
other communications shall be deemed to be given or made upon the earlier to
occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered
by hand or by courier, when signed for by or on behalf of the relevant party
hereto; (B) if delivered by mail, four Business Days after deposit in the
mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt
has been confirmed by telephone; and (D) if delivered by electronic mail (which
form of delivery is subject to the provisions of subsection (c) below),
when delivered.  In no event shall a
voicemail message be effective as a notice, communication or confirmation
hereunder.

 

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

 

(c)           Limited Use of
Electronic Mail.  Electronic
mail and Internet and intranet websites may be used only to distribute routine
communications, such as financial statements and other information as provided
in Section 6.01, and to distribute Loan Documents for execution by
the parties thereto, and may not be used for any other purpose.

 

(d)           Reliance by
Administrative Agent and Lenders.  The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including Loan Notices) that the Administrative Agent and the Lenders
in good faith believe to have been given by or on behalf of the Borrower even
if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein,
or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower
shall indemnify each Agent-Related Person and each Lender from all losses,
costs, expenses and liabilities resulting from the reliance by such Person on
each notice that the Administrative Agent and the Lenders in good faith believe
to have been given by or on behalf of the Borrower.  All telephonic communications with the Administrative Agent may
be recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

 

47

 

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

 

10.04      Attorney
Costs, Expenses and Taxes.  The
Borrower agrees (a) to pay or reimburse the Administrative Agent for all costs
and expenses incurred in connection with the development, preparation,
negotiation and execution of this Agreement and the other Loan Documents and
any amendment, waiver, consent or other modification of the provisions hereof
and thereof (whether or not the transactions contemplated hereby or thereby are
consummated), and the consummation and administration of the transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to pay
or reimburse the Administrative Agent and each Lender for all costs and
expenses incurred in connection with the enforcement, attempted enforcement, or
preservation of any rights or remedies under this Agreement or the other Loan
Documents (including all such costs and expenses incurred during any “workout”
or restructuring in respect of the Obligations and during any legal proceeding,
including any proceeding under any Debtor Relief Law), including all Attorney
Costs.  The foregoing costs and expenses
shall include all search, filing, recording, title insurance and appraisal
charges and fees and taxes related thereto, and other out-of-pocket expenses
incurred by the Administrative Agent and the cost of independent public
accountants and other outside experts retained by the Administrative Agent or
any Lender.  All amounts due under this Section 10.04
shall be payable within ten Business Days after demand therefore.  The agreements in this Section shall
survive the termination of the Aggregate Commitments and repayment of all other
Obligations.

 

10.05      Indemnification
by the Borrower.  Whether or not
the transactions contemplated hereby are consummated, the Borrower shall
indemnify and hold harmless each Agent-Related Person, each Lender and their
respective Affiliates, directors, officers, employees, counsel, agents and
attorneys-in-fact (collectively the “Indemnitees”) from and against any
and all liabilities, obligations, losses, damages, penalties, claims, demands,
actions, judgments, suits, costs, expenses and disbursements (including
Attorney Costs) of any kind or nature whatsoever which may at any time be imposed
on, incurred by or asserted against any such Indemnitee in any way relating to
or arising out of or in connection with (a) the execution, delivery,
enforcement, performance or administration of any Loan Document or any other
agreement, letter or instrument delivered in connection with the transactions
contemplated thereby or the consummation of the transactions contemplated
thereby, (b) any Commitment, Loan or Letter of Credit or the use or proposed
use of the proceeds therefrom (including any refusal by the L/C Issuer to honor
a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (c) any actual or alleged presence or release of Hazardous
Substances on or from any property currently or formerly owned or operated by
the Borrower or any Subsidiary of the Borrower, or any Environmental Liability
related in any way to the Borrower or any Subsidiary of the Borrower, or (d)
any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory (including any investigation of, preparation for, or defense of any
pending or threatened claim, investigation, litigation or proceeding) and
regardless of whether any Indemnitee is a party thereto (all the foregoing,
collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in
whole or in part, out of the negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.  No Indemnitee shall be
liable for any damages arising from the use by others of any information or
other materials obtained through IntraLinks or other similar information
transmission systems in connection with this Agreement.  All amounts due under this Section 10.05
shall be payable within ten Business

 

48

 

Days after demand therefore.  The agreements in this Section shall survive the resignation
of the Administrative Agent, the replacement of any Lender, the termination of
the Aggregate Commitments and the repayment, satisfaction or discharge of all
the other Obligations.

 

10.06      Payments
Set Aside.  To the extent that
any payment by or on behalf of the Borrower is made to the Administrative Agent
or any Lender, or the Administrative Agent or any Lender exercises its right of
set-off, and such payment or the proceeds of such set-off or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by the
Administrative Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such set-off had not occurred, and (b) each Lender severally agrees to
pay to the Administrative Agent upon demand its applicable share of any amount
so recovered from or repaid by the Administrative Agent, plus interest thereon
from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.

 

10.07      Successors
and Assigns.

 

(a)           The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
subsection (f) or (i) of this Section, or (iv) to an SPC in accordance
with the provisions of subsection (h) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Indemnitees)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)           Any Lender may at any
time assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it); provided
that (i) except in the case of an assignment of the entire remaining amount of
the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund (as defined in subsection (g) of this Section) with respect
to a Lender, the aggregate amount of the Commitment (which for this purpose
includes Loans outstanding thereunder) subject to each such assignment,
determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be
less than $5,000,000  unless each of the Administrative Agent
and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed); (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under
this Agreement with respect to the Loans or the Commitment assigned; (iii) any
assignment of a Commitment must be approved by the Administrative Agent and the
L/C Issuer unless the Person that is the proposed assignee is itself a Lender
(whether or not the proposed assignee would otherwise qualify as an Eligible
Assignee), such approval not to be unreasonably withheld or delayed; and (iv)
the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500.  Subject to acceptance
and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section,

 

49

 

from and after the effective date specified in each
Assignment and Assumption, the Eligible Assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
10.04 and 10.05 with respect to facts and circumstances occurring
prior to the effective date of such assignment).  Upon request, the Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this subsection 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 subsection (d) of this
Section.

 

(c)           The Administrative
Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain at the Administrative Agent’s Office 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
Loans and L/C Obligations owing to, 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 and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

(d)           Any Lender may at any
time, without the consent of, or notice to, the Borrower or the Administrative
Agent, sell participations to any Person (other than a natural person or the
Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any 
provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section 10.01 that directly affects such
Participant.  Subject to
subsection (e) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05  to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.09  as
though it were a Lender, provided such Participant agrees to be subject
to Section 2.12 as though it were a Lender.

 

(e)           A Participant shall not
be entitled to receive any greater payment under Section 3.01 or 3.04  than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section 10.15
as though it were a Lender.

 

(f)            Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement (including under its Note, if any) to secure obligations
of such Lender,

 

50

 

including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)           As used herein, the
following terms have the following meanings:

 

“Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d)
any other Person (other than a natural person) approved by (i) the
Administrative Agent, and (ii) unless an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or
delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

“Fund” means any
Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

 

“Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

(h)           Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any Loan
that such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the
obligations of the Borrower under this Agreement (including its obligations
under Section 3.04), (ii) no SPC shall be liable for any indemnity
or similar payment obligation under this Agreement for which a Lender would be
liable, and (iii) the Granting Lender shall for all purposes, including the
approval of any amendment, waiver or other modification of any provision of any
Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender.  In
furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that
is one year and one day after the payment in full of all outstanding commercial
paper or other senior debt of any SPC, it will not institute against, or join
any other Person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency, or liquidation proceeding under the laws of the United
States or any State thereof. 
Notwithstanding anything to the contrary contained herein, any SPC may
(i) with notice to, but without prior consent of the Borrower and the
Administrative Agent and with payment of a processing fee of $3,500, assign all
or any portion of its right to receive payment with respect to any Loan to the
Granting Lender and (ii) disclose on a confidential basis any non-public
information relating to its funding of Loans to any rating agency, commercial
paper dealer or provider of any surety or Guarantee or credit or liquidity
enhancement to such SPC.

 

(i)            Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing to it and the Note, if any, held by it to
the trustee for holders of obligations owed, or securities issued, by such Fund
as security for such obligations or securities, provided that unless and
until such trustee actually becomes a Lender in compliance with the other
provisions of this Section 10.07, (i) no such pledge shall release
the pledging Lender from any of its obligations under the Loan Documents and
(ii) such trustee shall not be entitled to

 

51

 

exercise any of the rights of a
Lender under the Loan Documents even though such trustee may have acquired
ownership rights with respect to the pledged interest through foreclosure or
otherwise.

 

(j)            Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, (i) upon
30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer.  In the event of any such resignation as L/C
Issuer, the Borrower shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder; provided, however, that no failure by the Borrower
to appoint any such successor shall affect the resignation of Bank of America
as L/C Issuer.  If Bank of America
resigns as L/C Issuer, it shall retain all the rights and obligations of the
L/C Issuer hereunder with respect to all Letters of Credit outstanding as of
the effective date of its resignation as L/C Issuer and all L/C Obligations
with respect thereto (including the right to require the Lenders to make Base
Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).

 

10.08      Confidentiality.  Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential); (b) to
the extent requested by any regulatory authority; (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process; (d) to any other party to this Agreement; (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder; (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any Eligible Assignee of or Participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under
this Agreement or (ii) any direct or indirect contractual counterparty or
prospective counterparty (or such contractual counterparty’s or prospective
counterparty’s professional advisor) to any credit derivative transaction
relating to obligations of the Borrower; (g) with the consent of the Borrower;
(h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower; or (i) to the National Association of
Insurance Commissioners or any other similar organization.  In addition, the Administrative Agent and
the Lenders may disclose the existence of this Agreement and information about
this Agreement to market data collectors, similar service providers to the
lending industry, and service providers to the Administrative Agent and the
Lenders in connection with the administration and management of this Agreement,
the other Loan Documents, the Commitments, and the Credit Extensions.  For the purposes of this Section, “Information”
means all information received from the Borrower relating to its business,
other than any such information that is available to the Administrative Agent
or any Lender on a nonconfidential basis prior to disclosure by the
Borrower.  Any Person required to
maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

Notwithstanding anything
herein to the contrary, the information subject to this Section 10.08
shall not include, and the Administrative Agent, each Lender and the Borrower
may disclose without limitation of any kind, any information with respect to
the “tax treatment” and “tax structure” (in each case, within the meaning of
Treasury Regulation Section 1.6011-4) of the transactions contemplated
hereby and all materials of any kind (including opinions or other tax analyses)
that are provided to the Administrative Agent, such Lender or the Borrower
relating to such tax treatment and tax structure; provided that with
respect to any document or similar item that in any case contains information
concerning the tax treatment or tax structure of the transactions as well as
other information, this sentence, in the case of the Administrative Agent and
each Lender,  shall only apply to such
portions of

 

52

 

the document or similar item that relate to the tax
treatment or tax structure of the Loans, Letters of Credit and transactions
contemplated hereby.

 

10.09      Set-off.  In addition to any rights and remedies
of the Lenders provided by law, upon the occurrence and during the continuance
of any Event of Default, each Lender is authorized at any time and from time to
time, without prior notice to the Borrower, any such notice being waived by the
Borrower to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender to or
for the credit or the account of the Borrower against any and all Obligations
owing to such Lender hereunder or under any other Loan Document, now or
hereafter existing, irrespective of whether or not the Administrative Agent or
such Lender shall have made demand under this Agreement or any other Loan
Document and although such Obligations may be contingent or unmatured or
denominated in a currency different from that of the applicable deposit or
indebtedness.  Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such
set-off and application made by such Lender; provided, however,
that the failure to give such notice shall not affect the validity of such set-off
and application.

 

10.10      Interest
Rate Limitation.  Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

To the extent that the
interest rate laws of the State of Texas are applicable to the Loans for
purposes of determining the “maximum rate” or the “maximum amount,” then those
terms mean the “weekly ceiling” from time to time in effect under Texas Finance
Code § 303.001, as limited by Texas Finance Code § 303.009, and, to
the extent that this Agreement is deemed an open end account as such term is
defined in Texas Finance Code Section 301.002(a)(14), the Lenders retain
the right to modify the interest rate in accordance with applicable law.

 

The parties agree that
Texas Finance Code, Chapter 346, which regulates certain revolving loan
accounts and revolving triparty accounts, shall not apply to any revolving loan
accounts created under this Agreement or the Notes or maintained in connection
therewith.

 

10.11      Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

10.12      Integration.  This Agreement, together with the other
Loan Documents, comprises the complete and integrated agreement of the parties
on the subject matter hereof and thereof and supersedes all prior agreements, written
or oral, on such subject matter.  In the
event of any conflict between the provisions of this Agreement and those of any
other Loan Document, the provisions of this Agreement shall control; provided
that the inclusion of supplemental rights or remedies in favor of the
Administrative Agent or the Lenders in any other Loan Document shall not be
deemed a conflict with this Agreement. 
Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

 

53

 

10.13      Survival of Representations and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall
continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied.

 

10.14      Severability.  If any provision of this Agreement or
the other Loan Documents is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

10.15      Tax Forms.  (a) 
(i)  Each Lender that is not a
“United States person” within the meaning of Section 7701(a)(30) of the
Code (a “Foreign Lender”) shall deliver to the Administrative Agent,
prior to receipt of any payment subject to withholding under the Code (or upon
accepting an assignment of an interest herein), two duly signed completed
copies of either IRS Form W-8BEN or any successor thereto (relating to such
Foreign Lender and entitling it to an exemption from, or reduction of,
withholding tax on all payments to be made to such Foreign Lender by the
Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor
thereto (relating to all payments to be made to such Foreign Lender by the
Borrower pursuant to this Agreement) or such other evidence satisfactory to the
Borrower and the Administrative Agent that such Foreign Lender is entitled to
an exemption from, or reduction of, U.S. withholding tax, including any
exemption pursuant to Section 881(c) of the Code.  Thereafter and from time to time, each such
Foreign Lender shall (A) promptly submit to the Administrative Agent such
additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to
the Borrower and the Administrative Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be
made to such Foreign Lender by the Borrower pursuant to this Agreement, (B)
promptly notify the Administrative Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction, and (C) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Laws that the Borrower make any deduction or withholding for taxes from amounts
payable to such Foreign Lender.

 

(ii)           Each Foreign Lender, to
the extent it does not act or ceases to act for its own account with respect to
any portion of any sums paid or payable to such Lender under any of the Loan
Documents (for example, in the case of a typical participation by such Lender),
shall deliver to the Administrative Agent on the date when such Foreign Lender
ceases to act for its own account with respect to any portion of any such sums
paid or payable, and at such other times as may be necessary in the
determination of the Administrative Agent (in the reasonable exercise of its
discretion), (A) two duly signed completed copies of the forms or statements
required to be provided by such Lender as set forth above, to establish the
portion of any such sums paid or payable with respect to which such Lender acts
for its own account that is not subject to U.S. withholding tax, and (B) two
duly signed completed copies of IRS Form W-8IMY (or any successor thereto),
together with any information such Lender chooses to transmit with such form,
and any other certificate or statement of exemption required under the Code, to
establish that such Lender is not acting for its own account with respect to a
portion of any such sums payable to such Lender.

 

54

 

(iii)          The Borrower shall not
be required to pay any additional amount to any Foreign Lender under Section 3.01
(A) with respect to any Taxes required to be deducted or withheld on the basis
of the information, certificates or statements of exemption such Lender
transmits with an IRS Form W-8IMY pursuant to this Section 10.15(a)
or (B) if such Lender shall have failed to satisfy the foregoing provisions of
this Section 10.15(a); provided that if such Lender shall
have satisfied the requirement of this Section 10.15(a) on the date
such Lender became a Lender or ceased to act for its own account with respect
to any payment under any of the Loan Documents, nothing in this Section 10.15(a)
shall relieve the Borrower of its obligation to pay any amounts pursuant to Section 3.01
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender or other Person for the account of which
such Lender receives any sums payable under any of the Loan Documents is not
subject to withholding or is subject to withholding at a reduced rate.

 

(iv)          The Administrative Agent
may, without reduction, withhold any Taxes required to be deducted and withheld
from any payment under any of the Loan Documents with respect to which the
Borrower is not required to pay additional amounts under this Section 10.15(a).

 

(b)           Upon the request of the
Administrative Agent, each Lender that is a “United States person” within the
meaning of Section 7701(a)(30) of the Code shall deliver to the
Administrative Agent two duly signed completed copies of IRS Form W-9.  If such Lender fails to deliver such forms,
then the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable back-up withholding tax imposed
by the Code, without reduction.

 

(c)           If any Governmental
Authority asserts that the Administrative Agent did not properly withhold or
backup withhold, as the case may be, any tax or other amount from payments made
to or for the account of any Lender, such Lender shall indemnify the
Administrative Agent therefore, including all penalties and interest, any taxes
imposed by any jurisdiction on the amounts payable to the Administrative Agent
under this Section, and costs and expenses (including Attorney Costs) of the
Administrative Agent.  The obligation of
the Lenders under this Section shall survive the termination of the
Aggregate Commitments, repayment of all other Obligations hereunder and the
resignation of the Administrative Agent.

 

10.16      Governing
Law.

 

(a)           THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)           ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN
SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED
THERETO.  THE BORROWER, THE
ADMINISTRATIVE AGENT AND

 

55

 

EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY THE LAW OF SUCH STATE.

 

10.17      Waiver
of Right to Trial by Jury.  EACH
PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR
IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

10.18      Termination of Commitments Under Existing
Credit Agreement.  The commitments
of the Existing Lenders under the Existing Credit Agreement and the Existing
364-Day Credit Agreement shall terminate on the Closing Date.  Execution of this Agreement by Lenders who
are Existing Lenders shall constitute a waiver of the notice provisions in Sections
2.09 and 9.01 of the Existing Credit Agreement and Sections 2.08
and 9.01 of the Existing 364-Day Credit Agreement.

 

10.19      ENTIRE
AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

56

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed as of the date first above
written.

 

	
   

  	
  EQUITABLE RESOURCES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Phillip P. Conti

  
	
   

  	
  Name:

  	
    Phillip P. Conti

  
	
   

  	
  Title:

  	
  Vice President, Finance
  and Treasurer

  
				

 

[Signature Page to Equitable Resources, Inc. Revolving
Credit Agreement]

 

 

 

	
   

  	
  BANK OF AMERICA, N.A.,
  as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Renita Cummings

  
	
   

  	
  Name:

  	
  Renita Cummings

  
	
   

  	
  Title:

  	
  Agency Management
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,
  as

  
	
   

  	
  a Lender and L/C Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald E. McKaig

  
	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

 

	
   

  	
  JPMORGAN CHASE BANK,

  
	
   

  	
  as a Lender and
  Co-Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Robert C. Mertensotto

  
	
   

  	
  Name:

  	
  Robert
  C. Mertensotto

  
	
   

  	
  Title:

  	
  Managing
  Director

  
				

 

 

 

	
   

  	
  BANK ONE, NA,

  
	
   

  	
  as a Lender and
  Co-Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jane Bek Keil

  
	
   

  	
  Name:

  	
  Jane
  Bek Keil

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

 

	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  as a Lender and
  Co-Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Harrity, Jr.

  
	
   

  	
  Name:

  	
  Robert
  J. Harrity, Jr.

  
	
   

  	
  Title:

  	
  Managing
  Director

  
				

 

 

 

	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
  as a Lender and
  Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Thomas
  A. Majeski

  
	
   

  	
  Name:

  	
   

  	
  Thomas
  A. Majeski

  
	
   

  	
  Title:

  	
   

  	
  Vice
  President

  
					

 

 

 

	
   

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas A. Bell

  
	
   

  	
  Name:

  	
  Nicholas
  A. Bell

  
	
   

  	
  Title:

  	
  Director

  
					

 

 

 

	
   

  	
  BMO NESBITT BURNS
  FINANCING, INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Cahal
  B. Carmody

  
	
   

  	
  Name:

  	
   

  	
  Cahal
  B. Carmody

  
	
   

  	
  Title:

  	
   

  	
  Vice
  President

  
						

 

 

 

	
   

  	
  MELLON BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark W. Rogers

  
	
   

  	
  Name:

  	
  Mark
  W. Rogers

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

 

	
   

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James M. Warren

  
	
   

  	
  Name:

  	
  James
  M. Warren

  
	
   

  	
  Title:

  	
  Director

  
					

 

 

 

	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donald W. Herrick, Jr.

  
	
   

  	
  Name:

  	
  Donald
  W. Herrick, Jr.

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

 

	
   

  	
  FIFTH THIRD BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher S. Helmeci

  
	
   

  	
  Name:

  	
  Christopher
  S. Helmeci

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Peter W. Keller

  
	
   

  	
  Name:

  	
  Peter
  W. Keller

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA SHARES

 

	
  Institution

  	
   

  	
  Allocation

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank
  of America, N.A.

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  11.00

  	
  %

  
	
  JPMorgan
  Chase Bank

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  11.00

  	
  %

  
	
  Bank
  One, NA

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  11.00

  	
  %

  
	
  Citibank,
  N.A.

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  11.00

  	
  %

  
	
  PNC
  Bank, National Association

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  11.00

  	
  %

  
	
  Bank
  of Tokyo-Mitsubishi, Ltd.

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  7.00

  	
  %

  
	
  Barclays
  Bank PLC

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  7.00

  	
  %

  
	
  BMO
  Nesbitt Burns Financing, Inc.

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  7.00

  	
  %

  
	
  Mellon
  Bank, N.A.

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  7.00

  	
  %

  
	
  SunTrust
  Bank

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  7.00

  	
  %

  
	
  Bank
  of New York

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  5.00

  	
  %

  
	
  Fifth
  Third Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  5.00

  	
  %

  
	
  Total Commitments

  	
   

  	
  $

  	
  500,000,000

  	
   

  	
  100.00

  	
  %

  

 

 

 

SCHEDULE 10.02

 

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

 

BORROWER:

 

Equitable Resources, Inc.

One Oxford Centre

301 Grant Street, Suite
3300

Pittsburgh, PA 15219

Attention: Assistant
Treasurer

Telephone: (412) 553-5769

Facsimile: (412) 553-7781

Electronic Mail:
mgegick@eqt.com

Website Address: www.eqt.com

 

ADMINISTRATIVE AGENT:

 

Administrative
Agent’s Office 

(for
payments and Request for Credit Extensions):

Bank of America, N.A.

901 Main Street, 14th
Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail:  ben.cosgrove@bankofamerica.com

 

Account No.:  1292000883

Ref:  Equitable Resources, Inc.

ABA# 111000012

 

Other Notices as Administrative Agent:

 

Bank of America, N.A.

Agency Management
Services

901 Main Street, 14th
Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail:
ben.cosgrove@bankofamerica.com

 

 

 

with a copy to:

 

Bank of America, N.A.

TX4-213-08-14

700 Louisiana, 8th
Floor

Houston, TX  77002

Attention:  Mr. Ronald E. McKaig

Managing Director

Telephone:  (713) 247-7237

Facsimile:   (713) 247-7286

Electronic Mail:
ronald.e.mckaig@bankofamerica.com

 

L/C
ISSUER:

 

Bank of America, N.A.

Trade Operations-Los
Angeles #22621

333 S. Beaudry Avenue,
19th Floor

Mail Code:  CA9-703-19-23

Los Angeles, CA
90017-1466

Attention:      Sandra
Leon

Vice President

Telephone:  213.345.5231

Facsimile:  213.345.6694

Electronic Mail:  Sandra.Leon@bankofamerica.com

 

 

 

EXHIBIT
A

 

FORM OF LOAN NOTICE

 

Date: 
                        ,
         

 

To:          Bank of America, N.A.,
as Administrative Agent

 

Ladies
and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of October 30, 2003 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used
herein as therein defined), among Equitable Resources, Inc., a Pennsylvania
corporation (the “Borrower”), the Lenders from time to time party
thereto, Bank of America, N.A., as Administrative Agent and L/C Issuer, and the
other agents therein named.

 

The undersigned hereby
requests (select one):

 

o  A Borrowing of Loans                                                  o  A conversion or continuation of Loans

 

1.             On                                                                                        (a
Business Day).

 

2.             In the amount of
$                                                     .

 

3.             Comprised
of                                                             .

[Type of Loan requested]

 

4.             For Eurodollar Rate
Loans:  with an Interest Period
of            months.

 

The undersigned hereby
certifies that the following statements will be true on the date of the
proposed before and after giving effect thereto and to the application of the
proceeds therefrom:

 

(a)           the representations and
warranties of the Borrower contained in Article V of the Agreement are
true and correct as of the date hereof (except such representations and
warranties which expressly refer to an earlier date, which are true and correct
as of such earlier date, and except for the following:  [described any exceptions to the
representations and warranties in Section 5.04(c), 5.05 and 5.06
that have been disclosed to the Administrative Agent, and identify when such
disclosure was made and in what document]); and

 

(b)           no Default has occurred
and is continuing, or would result from the proposed Borrowing.

 

[The Borrowing requested
herein complies with the proviso to the first sentence of Section 2.01
of the Agreement.]

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

A-1

 

EXHIBIT B

 

FORM OF NOTE

 

 

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower”), hereby promises to pay to
                                
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of each Loan
from time to time made by the Lender to the Borrower under that certain
Revolving Credit Agreement, dated as of October 30, 2003 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among the Borrower, the Lenders from time to time party
thereto, Bank of America, N.A., as Administrative Agent and L/C Issuer, and the
other agents therein named.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Loan from the date of such
Loan until such principal amount is paid in full, at such interest rates and at
such times as provided in the Agreement. 
All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent’s Office.  If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof
until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Agreement.

 

This Note is one of the
Notes referred to in the Agreement, is entitled to the benefits thereof and may
be prepaid in whole or in part subject to the terms and conditions provided
therein.  Upon the occurrence and continuation
of one or more of the Events of Default specified in the Agreement, all amounts
then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced
by one or more loan accounts or records maintained by the Lender in the
ordinary course of business. The Lender may also attach schedules to this Note
and endorse thereon the date, amount and maturity of its Loans and payments
with respect thereto.

 

This Note is a Loan
Document and is subject to Section 10.10 of the Agreement, which is
incorporated herein by reference the same as if set forth herein verbatim.

 

The Borrower, for itself,
its successors and assigns, hereby waives diligence, presentment, protest and
demand and notice of protest, demand, dishonor and non-payment of this Note.

 

B-1

 

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

B-2

 

LOANS AND PAYMENTS WITH RESPECT
THERETO

 

 

	
  Date

  	
   

  	
  Type of Loan

  Made

  	
   

  	
  Amount of

  Loan Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount of

  Principal or

  Interest Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance This

  Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

EXHIBIT C

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial
Statement Date:
                                    ,
         

 

To:          Bank of America, N.A.,
as Administrative Agent

 

Ladies
and Gentlemen:

 

Reference is made to that
certain Revolving Credit Agreement, dated as of October 30, 2003 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used
herein as therein defined), among Equitable Resources, Inc., a Pennsylvania
corporation (the “Borrower”), the Lenders from time to time party
thereto, Bank of America, N.A., as Administrative Agent and L/C Issuer, and the
other agents therein named.

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that he/she is the
                                                     
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use following paragraph 1 for
fiscal year-end
financial statements]

 

1.             Attached hereto as Schedule 1
are the year-end audited financial statements required by Section 6.01(a)
of the Agreement for the fiscal year of the Borrower ended as of the above
date, together with the report and opinion of an independent certified public
accountant required by such section. 
Such financial statements fairly present the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such period.

 

[select one]

[are attached hereto as
Schedule 1]

—or—

 

[are available  in electronic format and have been delivered
pursuant to Section 6.01 of the Agreement].

 

[Use following paragraph 1 for
fiscal quarter-end
financial statements]

 

1.             Attached hereto as Schedule 1
are the unaudited financial statements required by Section 6.01(b)
of the Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence of
footnotes.

 

[select one]

[are attached hereto as
Schedule 1]

—or—

[are available  in electronic format and have been delivered
pursuant to Section 6.01 of the Agreement].

 

2.             The undersigned has
reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the
transactions and

 

C-1

 

condition (financial or
otherwise) of the Borrower during the accounting period covered by the attached
financial statements.

 

3.             A review of the
activities of the Borrower during such fiscal period has been made under the
supervision of the undersigned with a view to determining whether during such
fiscal period the Borrower performed and observed all its Obligations under the
Loan Documents, and

 

[select
one:]

 

[to the best knowledge of
the undersigned during such fiscal period, (a) the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it,
and (b) no Default exists.]

 

—or—

[the following covenants or conditions have not been performed or
observed [or: the following Default exists] and the following is a list of each
such Default and its nature and status:]

 

4.             The representations
and warranties of the Borrower contained in Article V of the
Agreement (except with respect to the representations and warranties in Sections
5.04(c), 5.05 and 5.06, to the extent disclosed herein), or
which are contained in any document furnished at any time under or in connection
with the Loan Documents, are true and correct on and as of the date hereof,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such
earlier date, and except that for purposes of this Compliance Certificate, the
representations and warranties contained in subsections (a) and (b) of Section 5.04
of the Agreement shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01
of the Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

 

[the following is a
description of the nature and status of each event or circumstance which causes
the representations and warranties in Section[s] [5.04(c)], [5.05]
and [5.06], to be untrue on the date hereof:]

 

5.             The financial
covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date of this Certificate.

 

IN  WITNESS  WHEREOF, the undersigned
has executed this Certificate as
of                                 ,                .

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

C-2

 

SCHEDULE 1

 

Financial Statements

 

C-3

 

For the Quarter/Year ended

 

                          (“Statement
Date”)

 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

 

Section 7.07 – Debt to Capital.

 

	
  I.

  	
  Consolidated
  Debt at Statement Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Debt of the Borrower and its Subsidiaries on the
  Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Non-Recourse Debt of
  the Borrower and its Subsidiaries on the Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Consolidated
  Debt at Statement Date (Lines I.A. – I.B.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Total
  Capital at Statement Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Consolidated
  Debt at Statement Date  (Line I.C.
  above):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Shareholders’
  Equity at Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Any excess of the net
  book value of assets subject to Liens securing Non-Recourse Debt (including
  the total assets of Excluded Subsidiaries) over the amount of the related
  Non-Recourse Debt that is reflected in Shareholders’ Equity:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Total
  Capital at Statement Date (Lines II.A. + II.B – II.C.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  Consolidated Debt to
  Total Capital at Statement Date: (Line I.C.  ̧
  Line II.D.) (cannot exceed 0.65)

  	
   

  	
   

  	
   

  

 

C-4

 

EXHIBIT D

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

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

 

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

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
                                                              
  [and is an Affiliate/Approved Fund of [identify Lender](1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  Equitable Resources,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
  Bank of America, as the
  administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The Revolving Credit
  Agreement, dated as of October 30, 2003, among Equitable Resources,
  Inc., the Lenders parties thereto, Bank of America, N.A., as Administrative
  Agent and L/C Issuer, and the other agents therein named.

  

 

(1) Select as applicable.

 

D-1

 

6.             Assigned Interest:

 

	
  Aggregate 

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment

  Assigned

  	
   

  	
  Percentage 

  Assigned of

  Commitment(2)

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
								

 

[7.            Trade Date:                                                   ](3)

 

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

 

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

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

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

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

 

D-2

 

	
  [Consented to and]
  Accepted:

  	
   

  
	
   

  	
   

  
	
  [NAME OF ADMINISTRATIVE
  AGENT], as

  
	
    Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Consented to:]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

D-3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS FOR

 

ASSIGNMENT AND ASSUMPTION

 

1.         Representations and
Warranties.

 

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

 

1.2.      Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of an Eligible Assignee under the
Credit Agreement (subject to receipt of such consents as may be required under
the Credit Agreement), (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered pursuant to
Section 6.01 thereof, as applicable, and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision
independently and without reliance on the Administrative Agent or any other
Lender, and (v) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

 

2.         Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
interest (including payments of principal, interest, fees and other amounts) to
the Assignee whether such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make all appropriate adjustments
in payments by the Administrative Agent for periods prior to the
Effective Date or with respect to the making of this assignment directly
between themselves.

 

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

 

D-4

 

Assumption.  This Assignment and Assumption shall be
governed by, and construed in accordance with, the law of the State of New
York.

 

D-5

 

EXHIBIT E-1

 

FORM OF OPINION OF REED SMITH LLP

 

October    , 2003

 

To Bank of America, N.A.,
as

Administrative Agent, and
the Lenders

and the other Agents Parties to the

Credit Agreement Referred to Below

 

Ladies and Gentlemen:

 

We have participated in
the preparation of the Revolving Credit Agreement (the “Credit Agreement”)
dated as of October 30, 2003 among Equitable Resources, Inc., a
Pennsylvania corporation (the “Borrower”), the Lenders named therein, Bank of
America, N.A., as Administrative Agent and L/C Issuer, and the other agents
named therein, and have acted as special counsel for the Borrower for the
purpose of rendering this opinion pursuant to Section 4.01(a)(v) of the
Credit Agreement.  Capitalized terms
used herein which are defined in the Credit Agreement are used herein as
therein defined.

 

We have examined
originals or copies, certified or otherwise identified to our satisfaction, of
such documents, corporate records, certificates of public officials and other
instruments and have conducted such other investigations of law as we have
deemed necessary or advisable for purposes of this opinion.  We have assumed, with respect to all
documents which we have examined:  the
genuineness of all signatures thereon, the authenticity of all documents
submitted to us as originals, the conformity to the originals of all documents
submitted to us as copies, and the authenticity of the originals of such
copies.

 

In rendering this opinion
we have assumed with your permission that (i) the Credit Agreement has been
duly authorized, executed and delivered by Administrative Agent and each
Lender, (ii) the Borrower has been duly incorporated and is validly existing as
a corporation under the laws of the Commonwealth of Pennsylvania, (iii) the
Borrower has duly authorized, executed and delivered the Credit Agreement and
the Notes, and (iv) the execution and delivery by the Borrower of the Credit
Agreement and the Notes require no consent or approval by any governmental
body, agency or official or any filing with the public utility commissions of
Kentucky, Pennsylvania, or West Virginia. 
We understand you have relied on the opinion of the Borrower’s General
Counsel of even date herewith with respect to these issues regarding the
Borrower.

 

Upon the basis of the
foregoing, we are of the opinion that the Credit Agreement constitutes a legal,
valid and binding agreement of the Borrower and each Note constitutes a legal,
valid and binding obligation of the Borrower, in each case enforceable in
accordance with its terms, except as the same may be limited by applicable
bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization,
receivership, moratorium or similar laws relating to or affecting creditors’
rights generally and by general principles of equity, whether enforcement is
sought in a proceeding in equity or at law. 
The enforceability of the respective obligations of the parties to the
Credit Agreement and the Note, and the availability of certain rights and
remedies provided for therein, may be limited by applicable state and federal
laws and judicial decisions, but the remedies provided for in the Credit
Agreement are adequate for the practical realization of the benefits provided
thereby, except for the consequences of any procedural delay which may result
therefrom.

 

We express no opinion as
to the enforceability of any provisions of the Credit Agreement or any Note
providing for the indemnification or exculpation of any Agent or any Lender (A)
in violation of

 

E-1-1

 

public policy, (B) to the
extent precluded by federal or state securities laws, or (C) purporting to
indemnify or exculpate any Agent or any Lender from the consequences of its own
gross negligence, willful misconduct or strict liability.

 

We are members of the Bar
of the State of New York and of the Commonwealth of Pennsylvania and the
foregoing opinion is limited to the laws of the Commonwealth of Pennsylvania
and of the State of New York and the applicable federal laws of the United
States of America.  In giving the
foregoing opinion, we express no opinion as to the effect (if any) of any law
of any jurisdiction (except the Commonwealth of Pennsylvania and the State of
New York) in which any Lender is located which limits the rate of interest that
such Lender may charge or collect.

 

This opinion is rendered
solely to you and to Eligible Assignees in connection with the above
matter.  This opinion may not be relied
upon by you or Assignees for any other purpose or relied upon by any other
person without our prior written consent. 
The opinions expressed herein are rendered and speak only as of the date
hereof, and we specifically disclaim any responsibility to update such opinions
or to advise you of subsequent developments affecting such opinions that
hereafter may come to our attention.

 

	
   

  	
  Very truly yours,

  

 

E-1-2

 

EXHIBIT E-2

 

FORM OF OPINION OF GENERAL COUNSEL OF
EQUITABLE RESOURCES, INC.

 

October     , 2003

 

To Bank of America, N.A.,
as

Administrative Agent and
the Lenders and the

other Agents Parties to the Credit

Agreement Referred to Below

 

Ladies and Gentlemen:

 

I am General Counsel of
Equitable Resources, Inc. (the “Borrower”) and have acted as internal counsel
for the Borrower in connection with the Revolving Credit Agreement (the “Credit
Agreement”) dated as of October 30, 2003 among the Borrower, the Lenders
parties thereto, Bank of America, N.A., as Administrative Agent and L/C Issuer,
and the other agents named therein. 
Capitalized terms which are defined in the Credit Agreement are used
herein as therein defined.  This opinion
is being rendered to you at the request of my client pursuant to
Section 4.01(a)(v) of the Credit Agreement.

 

For purposes of rendering
this opinion, I have examined the following:

 

1.             the Credit Agreement;

 

2.             the Notes;

 

3.             the Certificate of
Incorporation and Bylaws of the Borrower;

 

4.             a Certificate of Good
Standing of the Borrower, certified by the Secretary of the Commonwealth of
Pennsylvania on
                                    ,
2003; and

 

5.             Minutes of the
meeting of the Board of Directors of the Borrower on                              ,
        .

 

For purposes of rendering
this opinion I have relied without independent investigation upon statements of
officers and employees of the Borrower as to certain factual matters relevant
to this opinion.  I have assumed, with
respect to all documents which I have examined:  the genuineness of all signatures thereon (other than signatures
of officers of the Borrower), the authenticity of all documents submitted to me
as originals, the conformity to the originals of all documents submitted to me
as copies, and the authenticity of the originals of such copies.

 

Upon the basis of the
foregoing, I am of the opinion that:

 

1.             The Borrower is a
corporation duly incorporated, validly existing and in good standing under the
laws of Pennsylvania and has all corporate powers and authority and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted and execute, deliver and perform its
obligations under the Credit Agreement and Notes.

 

2.             The execution,
delivery and performance by the Borrower of the Credit Agreement and the Notes
(a) are within the corporate powers of the Borrower, (b) have been duly
authorized by all necessary corporate action, (c) require no consent or
approval by, or filing with, the public utility commissions of Kentucky,
Pennsylvania, or West Virginia, or any other Governmental Authority of the 

 

E-2-1

 

Commonwealth of
Pennsylvania or of the Federal government of the United States, (d) do not
contravene, or constitute a default under, the articles of incorporation or
by-laws of the Borrower, (e) do not contravene, or constitute a default under,
any agreement, judgment, injunction, order, decree, or other instrument, in
each case under this clause (e) of which I have actual knowledge, binding upon
the Borrower or any of its Subsidiaries, or (f) result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.  The Credit Agreement has been duly executed
and delivered by the Borrower.  The
execution and delivery of the Credit Agreement, and the making and repayment of
the Loans or other payment obligations, do not violate any applicable Law of
Pennsylvania or the United States.

 

3.             There is no action, suit or proceeding pending
against, or to the best of my actual knowledge threatened against, the Borrower
or any of its Subsidiaries before any court or arbitrator or any governmental
body, agency or official, in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business,
consolidated financial position or consolidated results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of the Credit Agreement or the
Notes.

 

4.             Each of the
Borrower’s corporate Subsidiaries is a corporation validly existing, and has
all corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

 

5.             None of the Borrower,
any Person Controlling the Borrower, or any Subsidiary (a) 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, or (b) is
or is required to be registered as an “investment company” under the Investment
Company Act of 1940.

 

I am a member of the Bar
of the Commonwealth of Pennsylvania and the foregoing opinion is limited (i) to
the laws of the Commonwealth of Pennsylvania, (ii) to the applicable federal
laws of the United States of America, (iii) to the extent set forth in
paragraph 2 above, to the public utility laws of the Commonwealth of Kentucky
and the State of West Virginia and (iv) to the extent set forth in paragraph 4
above, to the general corporation laws of the applicable States of the United
States under which the Borrower’s Subsidiaries are organized.

 

This opinion is rendered
solely to you and to Eligible Assignees in connection with the Credit
Agreement.  This opinion may not be
relied upon by you or Eligible Assignees for any other purpose or relied upon
by any other person without my prior written consent.  The opinions expressed herein are rendered and speak only as of
the date hereof, and I specifically disclaim any responsibility to update such
opinions or to advise you of subsequent developments affecting such opinions
that hereafter may come to my attention.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  General Counsel

  

 

E-2-2

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